1 INFORMATION COLLEC TION REQUEST (ICR)

OMB-83 SUPPORTING STATEMENT

ENVIRONMENTAL PROTECTION AGENCY

OFFICE OF AIR & RADIATION

A. JUSTIFICATION

1. Identification of the Information Collection

a. Title: Recordkeeping and Reporting for Diesel Fuel Produced by Transmix

Processors.

EPA Number: 2463.01

b. Short characterization:

With this proposed information collec tion request (ICR), th e Office of Air and Radiation (OAR) is seeking permission to co llect information related to diesel fuel produced by transmix processors. “Transmix” is a mixture of finished fuels, such as pipeline interface, that no longer meets the spec ifications for a fuel that can be used or sold without further processing. “Pipeline in terface” means the mixture of different fuels that abut each other during pipeline shipme nt. The proposed recordkeeping and reporting requirements apply to producers of fuels from transmix, as well as parties who take custody to these fuels. The associated r ecordkeeping and reporti ng requirements are proposed to include:

 Submission of a compliance pl an by transmix processors;

 Submission of necessary updates to that compliance plan; and

 Initial programming and use of produc t transfer document (PTD) codes by transmix processors and other parties who handle transmix in the distribution
system.

There are no associated registration requi rements as a result of this proposal, since all known transmix processors are already regi stered with EPA as “refiners” and are not required to take any additional action. Furthe rmore, as refiners subject to the existing diesel regulations, transmix processors are alre ady required to test dies el fuel for sulfur. Recordkeeping and reporting associated with that activity has b een accounted for under EPA’s diesel fuel program ICR, OMB number 2060-0308 (renew al pending).

Specifically, EPA is proposing the following amendments are to the following
sections in 40 CFR Part 80:

Section Description 80.511(b)(4) Amended to allow for th e production and sale of 500-ppm2 locomotive and marine (LM) diesel fuel produced from transmix past 2014. 80.513 (entire section) Amended to allow for the production and sale of 500-ppm LM diesel fuel produced from transmix past 2014. 80.572(d) Amended to extend 500ppm LM diesel fuel label past 2012 1

. 80.597(d)(3)(ii) Amended to include 500-ppm LM diesel fuel in the list of fuels that an entity may deliver or receive cu stody of past June 1, 2014.

2. Need For, and Use of, the Collection

a. Authority for the Collection

Sections 114 and 208 of the Clean Air Act (CAA), 42 U.S.C. §§ 7414 and 7542, authorize EPA to require recordkeeping a nd reporting regarding enforcement of the provisions of Title II of the CAA. The relevant regulations are in 40 CFR Part 80, Regulation of Fuels and Fuel Additives.

b. Practical Utility/Uses of the Data

The reported data will enable EPA to:

1) Process compliance plan s from transmix producers.

2) Ensure that diesel fuel made from transmix meets the standards required under the regulations at 40 CFR Part 80, and that th e associated benefits to human health and
the environment are realized.

3. Non-duplication, Consultation, and other Collection Criteria

a. Non-duplication

Efforts have been made to eliminate duplication in this information collection. Where possible, information requirements from various organizations within the Agency
have been combined to minimize the subm ittal of duplicate information in different
formats. The information in this collecti on will not be available from another source.

b. Public Notice

1 Since EPA regulations dictate labeling language, no information is collected via labels.3 EPA will submit the ICR to OMB for re view, along with the notice of proposed rulemaking. This proposed supporting statement is being docketed in order to permit interested parties to fully comment upon the performance-based approach and the recordkeeping and reporting cost s associated with it.

c. Consultations

EPA is providing an opportunity for no tice and comment regarding the proposed rule and this proposed supporting statement. We anticipate that the notice of proposed rulemaking and the proposed information collection will generate comments from interested parties. We will consider these comments in generating a supporting statement
for submission to OMB in connection w ith the final rule.

d. Effects of Less Frequent Data Collection

For most items in this proposed information collection, the frequency of response is determined by the submitter.

e. General Guidelines

This rule does not exceed any of the OMB guidelines.

f. Confidentiality

EPA informs respondents that they may a ssert claims of business confidentiality for any or all of the information they submit. Information claimed as confidential will be
treated in accordance with 40 CFR Part 2 and established Agency procedures. The template for qualification that we use for diesel sulfur permits a part y to clearly assert a
claim of business confidentiali ty on the actual submission. We anticipate developing a similar form for this approach when it is fi nalized. Information th at is received without a claim of confidentiality may be made available to the public without further notice to the submitter under 40 CFR § 2.203.

g. Sensitive Information

Individual reporting data may be claime d as sensitive and will be treated as
confidential information in accordance with the procedures outline in 40 CFR Part 2.

4. The Respondents and the Information Requested

a. Respondents/SIC Codes

The respondents to this in formation collection are:

 Refiners who produce diesel fuel from transmix (i.e., transmix processors)4  Parties in the distri bution chain who handle diesel fu el made from transmix (e.g., distributors, carriers)

Recordkeeping and reporting are re quired by the following industries, with SIC Code/2002 NAICS Code indicated in parentheses : refiners (2911/324110), [and petroleum marketers and other distributors (5171, 5172/424710, 424720).

b. Information Requested

In order to qualify a test met hod, the following information must be provided to the Agency

A) Reporting: Respondents who pr oduce diesel fuel from transmix (i.e., transmix processors) mu st submit to EPA in order to have a compliance plan approved. Other reporting is re lated to PTDs, which are used in the normal course of business by all parties in the petrol eum distribution system already.

B) Recordkeeping: Under the existing diesel fuel regulations, respondents must retain underlying records fo r five (5) years. This time period is consistent with the required record rete ntion for all 40 CFR Part 80 fuels programs.

5. The Information Collected, Agency Activities, Collection Methodology, and Information Management

a. Agency Activities

 EPA will review compliance plans and updates that are submitted.

 Data will be stored.

b. Collection and Methodology and Management

Compliance plans will be submitted by tr ansmix producers in accordance with the regulations. A common form is not feasible , since the content of the submission may vary from respondent to respondent. PTDs are used in the normal c ourse of business. EPA may ask to review a party’s PTDs, but does not routinel y collect them.

c. Small Entity Flexibility

This collection will not advers ely affect small entities.

d. Collection Schedule

The collection schedule for this information collection is largely driven by the respondent. Refiners are requi red to submit a compliance plan only if they wish to produce diesel fuel from transmix. PTDs are used by parties in the distribution chain in the normal course of business; the frequenc y of PTDs indicating diesel-from-transmix5 has been estimated for this ICR, but the actual frequency will be driven by the parties and by demand for the product.

6. Estimating the Burden and Cost of Collection

a. We drew upon experience implementi ng similar regulations among the same entities to develop estimates of the burden associated with this collection. We estimate that 25 refiners will produce diesel fuel from transmix and will be required to submit compliance plans. We estimate that 150 additi onal parties (e.g., di stributors, carriers) will handle the product and be subject to th e PTD requirements. Of these 150 additional parties who distribute and carry the fuel , we estimate that 45% of the volume distributed/carried will be by barge, 45% will be by rail, and 10% will be by truck.

b. Three labor categories are involved: managerial (inc ludes legal and professional review), technical, and clerical. The estimates use the Bureau of La bor Statistics figures from "Employer Costs for Employee Comp ensation - Table 12 - Private Industry, Manufacturing, and Non-Manufacturing Indus tries by Occupational Group” (December 2003), with a 3% annual inflation factor applied to bring the va lues to the present. Using this method, the following wages and benefits apply by category:

Wages and Benefits

Managerial $53.87 per hour Technical $35.29 per hour Clerical $24.56 per hour

Doubling for company overhead beyond wages and benefits, and for convenience, rounding up to the dollar, gi ves the following rates for this proposed ICR:

Total Employer Cost

Managerial $108 per hour Technical $71 per hour Clerical $49 per hour

It is assumed that for each hour of activity the mix will be about 0.1 hour managerial, 0.7 hour technical, and 0.2 hour cler ical. This gives an averag e labor cost of $71 per hour,

which will be used in this ICR. Note that th e figures in this table are rounded to the next whole number, wherever possible. We estimate the following burden:

Table I – Transmix Processors (Refiners)6 Collection Activity Total
Number
of Respondents Number of Responses

per Respondent Total
Number
of Responses Hours

Per Response Total

Hours Total

Cost $

Submission
of Compliance
Plan 25 1 25 8 (24
total
hours for

one report divided by 3
years to yield
annual burden) 200 $14,200

Annual updates to compliance plan 25 2 50
6 hours

per report 300 $21,300

Programming
of PTD Codes (one time cost) 25 1 25 8 (24
hours
total for

one

programming
instance
divided by 3 to yield
annual burden) 200 $14,200

Application
of PTD
Codes to
batches 25 364 9,104 .0003 (1
second

per instance
of reporting 3 $213

TOTAL 9,204 703 $49,913.00

Table II – Product Transfer Documents for Parties Downstream of the Transmix

Processor

Collection Activity Total
Number Number of Responses Total
Number Hours

Per Total

Hours Total

Cost7 of Respondents per Respondent of Responses Response $

Programming
of Code 150 1 150 8 (24
hours
total for

one

programming
instance
divided by 3 to yield
annual burden) 1200 $85,200

Application
of Code 150 61 9,104 .0003 (1
second

per instance
of reporting 3 $213

TOTAL 9,254 1203 $85,413.008 c. Estimating the Agency Burden and Cost

The Agency burden consists of one GS-13 engineer (estimated at $161,000 including overhead to revi ew compliance plans and compliance plan updates. We estimate that this employee will Spend 5% of his/her time engaged in such review. This yields an Agency cost of $8,050.

d. Estimating the Respondent Universe

We were able to estimate the number of regulated entities drawing upon experience regulating the same entities.

e. Bottom Line Annual Burden Hours and Costs

For transmix producers, we estimate 25 respondents, and a total annual reporting burden of 703 hours and $49,913.00. For other part ies in the distribution system, we estimate 150 respondents, and a total annual reporting burden of 1,203 hours and $85,413. Considering all respondents who would be subject to this information collection yields an annual total of 175 respondents, 1,906 hour s, and $135,326. We do not anticipate any additional record keeping burden, since diesel PTDs are normally kept in
the course of business.

f. Reason for Change in Burden

This proposed supporting statement has b een prepared in anticipation of EPA’s future submission of a proposed, new collection to OMB.

g. Burden Statement

We estimate an annual reporting burde n of 28 hours per respondent who is a transmix producer. We estimate an a nnual reporting burden of 8 hours for all other respondents. Considering all respondents (transmix producer s and other parties) who would be subject to this proposed informa tion collection, the annual reporting burden, per respondent, would is estimated to be 11 hours.

Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or di sclose or provide information to or for a Federal agency.
This includes the time needed to review th e instructions; develop, acquire, install, and utilize technology and systems for the purpos e of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete a nd review the collection of information; and
transit or otherwise disclose the information.9 An Agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a currently valid OMB control number. The OMB control numbers for EPA's regulations are listed in 40 CFR Part 9 and 48 CFR Chapter 15.

Interested parties are urged to comment on the Agency's need for this information collection, the accuracy of th e provided burden estimates, and any suggested methods for minimizing respondent burden, including the use of automated collect ion technique.

To comment on the Agency's need for this information, the accuracy of the provided burden estimates, and any sugge sted methods for minimizing respondent burden, EPA has established a public docket for this rule, which includes this ICR. Submit any comments related to the ICR to EPA and OMB. Send comments to OMB at the Office of Information and Regulatory A ffairs, Office of Management and Budget, 725 17th Street, NW, Washington, DC 20503, Attent ion: Desk Office for EPA. Since OMB is required to make a decision concer ning the ICR between 30 and 60 days after publication in the Federal Register, a comment to OMB is best assured of having its full effect if OMB receives it within 30 days of publication. The final rule will respond to any OMB or public comments on the informa tion collection require ments contained in this proposal.

Part B of the Supporting Statement This part of the supporting statement is not applicable.