Draft Supporting Statement

for

Information Collection Request

Reporting and Recordkeeping Requirements for

Importation of Nonroad Engines and Recreational Vehicles

EPA ICR 1723. 07

OMB Control Number: 2060

- 0320

June 2014

Compliance Division

Office of Transportation and Air Quality

Office of Air and Radiation

U.S. Environmental Protection Agency1

1. IDENTIFICATION OF THE INFORMATION COLLECTION

(a) TITLE OF THE INFORMATION COLLECTION

Reporting and Recordkeeping Req uirements for Importation of Nonroad Engines and

Recreational Vehicles (Renewal) , OMB #2060

- 0320, ICR #1723.0 7

.

(b) SHORT CHARACTERIZATION (ABSTRACT)

The Clean Air Act requires that motor vehicles and motor vehicle engines imported into the U.S.

confor m with applicable emission requirements. The Clean Air Act Amendments of 1990

extended these requirements to nonroad engines. This Information Collection Request (ICR)

includes the importation of outboard spa rk ignition (SI) marine engines; person al water craft SI

marine engines; non

- propulsion compression ignition (CI) engines used in marine applications ;

small nonroad SI engines (less than 25 horsepower), used, for example, in som e lawn and garden

equipment; and other nonroad CI engines such as constructi on equipment and farm tractors.

Finally , this ICR was broadened to include the importation of other recently regulated categories

of engines that will, like the above, all be listed on the same importation form, EPA Form 3520

-

21: locomotives and locomotive engines; large (greater than 50 horsepower) marine CI engines;

nonroad recreational vehicles such as snowmobiles, all

- terrain vehicles (ATVs), and off

- highway

motorcycles; and large nonroad SI engines used in such things as forklifts and compressors.

T he Compliance Division (CD) in the Office of Air and Radiation collects information and

r equires some recordkeeping to help ensure that nonconforming engines are brought into

compliance with Federal emission requirements, unless eligible for exemption or e xclusion.

Also, the information is used by the U.S. Customs and Border Protection ( CBP ), State regulatory

agencies, businesses, and individuals to determine whether engines are in compliance.

Information collected includes identification of the importer, the entry date, the manufacturer,

engine model and serial number, and an indication, by checking the appropriate box e s

, of the

regulatory category of engine and of the relevant regulatory provision under which it is being

imported. The information is reta ined in document form. The information is used to monitor

compliance of imports with the law and regulations and to respond to inquiries from the public

concerning the compliance status of specific imported engines.

a) EPA Form 3520

- 21. This form is use d by importers who are applying for entry of nonroad

engines. Form 3520

- 21 has been routinely used since ICR 1723.01 was approved in 1995. As

such, we don't find it necessary to include the expiration date on the front page of the form. The

OMB control n umber, EPA form number, and Paperwork Reduc t ion Act statement are

appropriately displayed on the form.

b) EPA Form 3520

- 8. This form is used by independent commercial importers (ICIs) to request

final admission (as opposed to initial declaration, which is covered by EPA Form 3520

- 1 and

OMB 2060

- 0095 for on

- road imports) of a nonconforming engine that has been brought into

compliance with Federal emission requirements. To date, nearly all such ICIs have been light

duty vehicle importers under 40 CFR Part 85, Subpart P. There have also been a few on

- road2

motorcycle IC I imports. The above

- named uses of Form 3520

- 8 are also covered by OMB 2060

- 0095 (ICR 0010). R egulations for ICI imports of nonroad CI engines are also set forth at 40 CFR

Part 89, Subpart G an d contemplate requests for final admission of these engines

. However,

b ecause this program is not yet active, only a placeholder burden is included here , so that this

ICR covers all nonroad imports

.

2. NEED FOR AND USE OF THE COLLECTION

(a) NEED/AUTHORITY FOR THE COLLECTION

Joint EPA and US Customs and Border Protection (CBP) regulations at 40 CFR 90.601 et seq

. and 19 CFR 12.74 promulgated under the authority under the Clean Air Act (Sections 203, 208

and 213) give authority for the colle ction of information. The collection of this information

helps ensure the compliance of imported nonroad engines with Federal emissions requirements,

which helps meet the Agency goal of reducing air pollution. Without this information, EPA and

CBP could not confirm that engines being imported conform to the emission requirements of the

Act, and, consequently, would not be able to allow importation of these engines.

(b) PRACTICAL UTILITY /USERS OF THE DATA

The Compliance Division receives the information either directly from the importers or

indirectly from the importers through CBP . The information is used by Agency enforcement

personnel to verify that all nonroad vehicles and engines subject to Federal emission

requirements have been declared upon entr y or that the category of exclusion or exemption from

emissions requirements has been identified in the declaration . The information is also used to

identify and prosecute violators of the regulations and to monitor the program in achieving the

objectives of the regulations.

3. NONDUPLICATION, CONSULTATIONS, AND OTHER COLLECTION CRITERIA

(a) NONDUPLICATION

Because the information collected is specific to identifying the appropriate regulated category

and appropriate regulatory provisions for imported n onroad engines under the Clean Air Act, the

information is highly specific to EPA and not likely amenable to combining with other programs

or agencies. Note that the form is currently already shared between EPA and Customs.

(b) PUBLIC NOTICE

EPA will s olicit public comment by means of a Federal Register Notice and the draft ICR is

available in the docket.

( c) CONSULTATIONS3

The following r epresentatives and manufacturers of imported nonroad engines were also

consulted to further define the burden tha t will be involved in handling Form 3520

- 21

.

Mark Perk

General Motors, Electromotive Division

2021 Oxford St.

London, Ontario N5V2Z7

Canada

519

- 459

- 5953

Bruce Bradley and Edward Meyer

Nissan Forklift Corp., North America

240 North Prospect Street

Mareng o, Illinois 60152

815

- 568

- 0061 and 815

- 568

- 4779

Ed Klim

International Snowmobile Manufacturers Association

1640 Haslett Rd., St. 170

Haslett, MI 48840

517

- 339

- 7788

(d) EFFECTS OF LESS FREQUENT COLLECTION

Since reporting is done only at the time of entr y, less frequent collection would seriously

undermine the Agency's ability to determine whether engines being imported meet applicable

emission requirements. Consequently, the Agency would not be able to allow entry of engines

being imported. Therefore, less frequent collection is not feasible. Note that one form per

shipment may be used, provided attachments including all the information required to describe

each engine is included. In addition CBP is moving to accepting electronic submissions of these

forms which will reduce burden.

(e) GENERAL GUIDELINES

This ICR requires that in the event of nonroad CI ICI imports, the importer notify EPA when

requesting final admission for vehicles (Form 3520

- 8) ; this m ight occasionally result in reporting

more o ften than quarterly. This requirement is necessary for EPA to inspect vehicles prior to

release from the ICI. If EPA required quarterly reports, either the ICI would have to hold

engines and only release them on a quarterly basis or EPA would likely not have the opportunity

to inspect engines imported by the ICI.

Additionally, EPA's regulations require that any such nonroad CI ICIs retain records for eight

years from the date of final admission (40 CFR 86.607(a) ) . For comparison , the Clean Air Act

requi res that light duty vehicles meet Federal emission standards throughout their useful lives,

which is defined by the Clean Air Act to be 10 years or 100,000 miles. The i mports regulations4

further specify that the useful life period starts from the date that the vehicle is delivered to the

owner by the ICI. Therefore, because of this requirement, compliance documentation must

ordinarily be maintained six years from the date of entry.

(f) CONFIDENTIALITY

Any information submitted to the Agency for which a claim of confidentiality is made will be

safeguarded according to policies set forth in Title 40, Chapter 1, Part 2, Subpart B

- Confidentiality of Business Information (see 40 CFR 2.201 et seq .). The public is not permitted

access to information contain ing personal or organizational identifiers. This collection complies

with the Privacy Act of 1974 and OMB Circular A

- 130.

(g) SENSITIVE QUEST IONS

No sensitive questions are asked.

4. THE RESPONDENTS AND THE INFORMATION REQUESTED

(a) RESPONDENTS/NAI CS CODES

Information collected is from individual importers and both small and large companies who

import, or import and manufacture nonroad engines and recreational vehicles. The NAICS codes

for the respondents are as follows:

Non

- road compression igni tion engines

333618 Manufacturers of nonroad diesel engines

333111 Manufacturers of farm machinery and equipment

333112 Manufacturers of lawn and garden tractors (home)

333924 Manufacturers of industrial trucks

333120 Manufacturers of construction machine ry

333131 Manufacturers of mining machinery and equipment

333132 Manufacturers of oil and gas field machinery and equipment

811112, 811198 Commercial importers of vehicles and vehicle components

33631 Manufacturers of motor vehicle gasoline engine and eng ine parts

336312 Manufacturers of gasoline engine and engine parts

33639 Manufacturers of other motor vehicle parts

Small nonroad spark

- ignition engines

333618 Other engine equipment manufacturing

336312 Gasoline engine and engine parts manufacturing

33 6999 Other transportation equipment manufacturing

336911 Motorcycle, bicycle and parts manufacturing5

Marine outboard and personal watercraft engines

333618 Manufacturers of marine spark ignition engines

333112 Manufacturers of recreational marine vesse ls

336611 Ship building and repair

336612 Boat building

336999 Other marine outboard and personal watercraft manufacturing

441222 Motorcycle, boat, and other motor vehicle dealers

Locomotive engines

333618 Manufacturers of locomotives and locomotive e ngines

48211, 482111, 482112 Railroad owners and operators

488210 Engine repair and maintenance

Large marine compression ignition engines

333618 Manufacturers of marine diesel engines

33661, 346611 Ship and boat building; ship building and repair

8113 10 Engine repair and maintenance

483 Water transportation, freight and passenger

336612 Boat building (watercraft not built in shipyards and typically of the type

suitable or intended for personal use)

441222 Motorcycle, boat, and other motor vehicle dealers

Recreational vehicles, including snowmobiles, all

- terrain vehicles, and certain high

- speed utility

vehicles

336991 Motorcycle manufacturers

336999 Snowmobile and all

- terrain vehicle manufacturers

441222 Motorcycle, boat, and other motor vehicl e dealers

Large nonroad spark

- ignition engines

333618 Manufacturers of new nonroad spark

- ignition engines

333111 Manufacturers of farm equipment

333112 Manufacturers of construction equipment

333924 Manufacturers of industrial trucks

811310 Engine r epair and maintenance

(b) INFORMATION REQUESTED

(i) Data Items6

The data requested in reports include:

- engine identification number

- engine make

- engine model

- model year of the engine

- port of entry

- d ate of entry

- entry number

- importer name, address and telephone number

- broker name, address and telephone number (optional)

- owner name, address and telephone number (optional)

- identification of the type of vehicle or engine by regulatory category

- identificat i on of the provision under which the vehicle or engine is being imported

- EPA exemption number, if applicable

(ii) Respondent Activities

To complete the collection, the respondent would:

- read form instructions

- collect data and complete forms

INFORMATION REQUIREMENTS FOR

IMPORTATION OF NONROAD CI ENGINES

40 CFR PART 89 SUBPARTS G AND J

INFORMATION REQUIREMENTS CITATION

I. ICI requirements

Reporting

- Certification application and 89.603(d)

production changes

- Notification of transfer to another ICI 89.604(c)(4)

- Notification of acceptance of responsibility 89.604(d)

- Application for final admission 89.605(a)

(certified engine)

- Application for fina l admission 89.609(b)

(modification/test engine)7

- Attestation regarding maintenance 89.610

instructions, warranties and emission labeling

- Reply to notice of suspension or revocation 89.612(e)(3)(ii)

- Request for hearing 89.612(e)(3)(iii)

Recordkeeping

- Vehicle disposition 89.607

- Owners or ultimate purchasers 89.608(b)

- Maintenance instructions, warranties and 89.610

emission labeling

II. Requirements applying to all importers

- Notification of conditional admission 89.604 (a)

- Request for prior approval 89.611

89.909

INFORMATION REQUIREMENTS FOR

IMPORTATION OF SMALL NONROAD SI ENGINES

40 CFR PART 90 SUBPARTS G AND J

INFORMATION REQUIREMENTS CITATION

- Notification of conditional admission 90.604(c),

90.611(a )

- Request for prior approval 90.612

90.909

INFORMATION REQUIREMENTS FOR

IMPORTATION OF MARINE SI ENGINES

INCLUDING MARINE OUTBOARD AND PERSONAL WATERCRAFT ENGINES

40 CFR PART 91 SUBPARTS H AND K

INFORMATION REQUIREMENTS CITATION

- Notific ation of conditional admission 91.703 (b)8

- Request for prior approval 91.704

91.1009

INFORMATION REQUIREMENTS FOR

IMPORTATION OF NON

- PROPULSION CI ENGINES

USED IN MARINE APPLICATIONS

40 CFR PART 89 SUBPARTS G AND J

INFORMATION REQUIREMENTS CIT ATION

- Notification of conditional admission 89.604(a)

- Request for prior approval 89.611

89.909

INFORMATION REQUIREMENTS FOR

IMPORTATION OF LOCOMOTIVES OR LOCOMOTIVE ENGINES

40 CFR PART 92, SUBPARTS I AND J

INFORMATION REQUIREMENTS CITATION

B Notification of conditional admission 92.803

B Request for prior approval 92.804

92.909

INFORMATION REQUIREMENTS FOR

LARGE MARINE CI ENGINES

40 CFR PART 94, SUBPARTS I AND J

INFORMATION REQUIREMENTS CITATION

B Notification of conditional admiss ion 94.803

B Request for prior approval 94.804

94.909

INFORMATION REQUIREMENTS FOR

IMPORTATION OF OTHER NONROAD ENGINES

40 CFR PART 1068 SUBPARTS C AND D

INFORMATION REQUIREMENTS CITATION

B Notification of conditional admission 1068.3019

B Re quest for prior approval 1068.301

5. THE INFORMATION COLLECTED

-- AGENCY ACTIVITIES, COLLECTION

METHODOLOGY, AND INFORMATION MANAGEMENT

(a) AGENCY ACTIVITIES

The Compliance Division receives the information as required from CBP , individuals

, and

busi nesses. After receiving the information, EPA and CBP use the information to determine

whether the engines and vehicles meet EPA requirements and retains the information in order to

respond to public, State government, and Federal government inquir i es.

(b ) COLLECTION METHODOLOGY AND MANAGEMENT

CBP and the Compliance Division use the information to determine if engines meet EPA

requirements. The Compliance Division does not retain the forms themselves, but rather

regulations require that the importers re tain the forms for 5 years after importation and make

them available upon request i n order to respond to public, State government, and Federal

government inquires, which are handled by C ompliance D ivision staff.

(c) SMALL ENTITY FLEXIBILITY

Small entit ies are required to submit the forms covered by this ICR when applicable. There is no

exemption for small entities. EPA does endeavor to provide small entities the maximum feasible

flexibility in submitting the data.

(d) COLLECTION SCHEDULE

The informat ion is not subject to a collection schedule, but is collected at the time of engine

entry and , in the event of a non

- road ICI import, when the engine is ready for approval by EPA

of final admission.

6. ESTIMATING THE BURDEN AND COST OF THE COLLECTION

6(a ) ESTIMATING RESPONDENT BURDEN

I. ICI Recording, Recordkeeping and Testing Burden for Nonroad CI engines

A. Reporting Burden Est. Est. # of Est. of

(hrs/ instance ) instances /yr Burden (hrs)

Form 3520

- 8 0. 81 1 0. 8110

B. Recordkeeping

Form 3520

- 8 & other required ICI records (see 4(b)

0. 5 1 0. 5

C. Testing : 28.0 1 28.0

II. Reporting Burdens, Form 3520

- 21

Burden Est. Est. # of Est. of

(hrs/form) forms/yr Burden (hrs)

All categories 0. 50 1 2 ,000 6,000

TOTAL BURDEN = 6,02 9.31 hrs

6(b) ESTIMATING RESPONDENT COST

LABOR COSTS:

I. ICI Recording, Recordkeeping, and Testing for N onroad CI e ngines

Estimated Labor

Units Costs

A. Reporting 1 form $ 50.00

@$ 61.73 per hour

B. Recordkeeping 1 engine $ 1 7

. 94

@$ 35.87 per hour

C. Testing 1 engine $ 1, 728.44

@ $ 61.73 per hour

II. Reporting Form 3520

- 21

Hours Cost

All categories 6,000 $ 370,380

@ 61.73 per hour

Total Labor Cost $ 372,176.3811

CAPITAL/STARTUP & O&M

I. ICI Recording, Recordkeeping, and Testing for Nonroad CI engines

Brokerage cost covering testing and application

- related

1 engine at $1 4 ,000 per engin e $ 14 ,000

II. O&M Costs For Record Storage

12,00 1 forms at $2 per form $24,00 2

Total Capital/Startup and O&M Costs $ 38 ,00 2

(i) Labor Costs

Rates for engineering managers, mechanical engineers, and secretaries (except legal, medical,

and executiv e) are from the May 20 13 BLS National Occupational Employment and Wage

Estimates ( http://www.bls.gov/oes/current/naics4_336100.htm , accessed June 4 , 20 14 ). With a

160% overhead multiplier, these are $ 93.12 , $ 61.73 , and $ 35.87 , respectively. Test labor cost s

are $ 61.7 3 per hour

(ii) Capital/Start

- up Costs

Capital/start

- up costs are predominantly incurred by ICIs during the required certification

process, which is covered by other ICR s

. ICIs in the on

- road program typically obtain the

necessary testing and certification work from a broker, who also provides testing services , or

who obtains from a testing facility the test results necessary for the final importation form. The

figure here is a placeholder for the possibility of extension of this program to nonroad CI

engines, and is taken from the previous renewal of this ICR.

(iii) Operations and Maintenance Costs

This cost is estimated as a component of overall broker activities to import a vehicle or engine,

and incorporates a $2 per form recordkeepi ng cost for broker form retention

.

6(c) ESTIMATING AGENCY BURDEN AND COST

The imports program is administered by EPA ’ s C ompliance Division. Forty percent of one Full

Time Equivalent em ployee (FTE) , GS 12/3; twenty percent of one Senior Environmental

Em ployment (SEE) Program employee 1 (about 400 hours); and a portion of the work assignment

1 The SEE Program is a n employment program for older workers authorized by the

Environmental Programs Assistance Act, passed by Congress in 1984, and provides employment

opportunities to senior citizens aged 55 and over.12

under a government contract are allocated to i mports activities. Based on the 201 4 Office of

Personnel GS pay schedule for Detroit , EPA estimates a yearly $ 80,578 for the FTE, then

multiplies the hourly rate by the standard government benefits multiplication factor of 1.6, for a

cost of $ 51, 400 plus $ 11,600 for the SEE, and $ 92

, 4 00 is estimated for the contractor.

6(d) ESTIMATING THE RESPONDENT UNIVERSE AND TOTAL BU RDEN COSTS

Recording, Recordkeeping, and Testing: 29. 8 1 hrs

Reporting Burdens, Form 3520

- 21: 6,000 hrs

Total Hours 6,029. 8 1

Recording, Recordkeeping, and Testing: $1 7 28.44

Reporting Burdens, Form 3520

- 21: $ 370,380

Total Cost $ 372,176.38

6(e ) BOTTOM LINE BURDEN HOURS AND COST TABLES

(i) Respondent Tally

The information collection will involve an estimated 4,801 respondents at an estimated labor cost

of $ 37 2

, 176.38 and a capital/startup and O&M cost of $38,002.

(ii) The Agency Tally

The contractor estimate is based upon the work assignment rather than an estimate of hours. An

estimated total Agency cost of $ 9 2, 4 00 per year is allocated to imports activities for Form 3520

-

21

.

(iii) Variations in the Annual Bottom Line

There are no variations in the ann ual bottom line.

6( f ) REASONS FOR CHANGE IN BURDEN

As with the prior renewal , this ICR bases the burdens on an estimate of the actual Form 3520

- 21s

filled in by importers . The estimated 12,000 Form 21s filled in per year is considered accurate

within 10%

. The program has remained consistent over time and the increase in burden is due to

the increased labor costs.

In addition, as with the prior renewal , a hypothetical burden of 1 engine is included as a

placeholder for t he burden associated with ICI imp ortation of nonroad CI engines has increased

slightly due to the slight increase in the cost of engine testing.13

6( g ) BURDEN STATEMENT

The annual public reporting and recordkeeping burden for this collection of information is

estimated to average 30 minut es per response. Burden means the total time, effort, or financial

resources expended by persons to generate, maintain, retain, or disclose or provide information

to or for a Federal agency. This includes the time needed to review instructions; develop,

acquire, install, and utilize technology and systems for the purposes of collecting, validating, and

verifying information, processing and maintaining information, and disclosing and providing

information; adjust the existing ways to comply with any previo usly applicable instructions and

requirements; train personnel to be able to respond to a collection of information; search data

sources; complete and review the collection of information; and transmit or otherwise disclose

the information. 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 EP A ’ s regulations are listed in 40 CFR part 9 and 48 CFR chapter 15.

T o comment on the Agency's need for this information, the accuracy of the provided burden

estimates, and any suggested methods for minimizing respondent burden, including the use of

automated collection techniques, EPA has established a public docket for this ICR under Docket

ID Number EPA

- HQ

- OAR

- 2007

- 1138 , which is available for online viewing at

www.regulations.gov , or in person viewing at the Air and Radiation Docket in the EPA Docket

Center (EPA/DC), EPA West, Room 3334 , 1301 Constitution Avenue, NW, Washington, D.C.

The EPA Docket Center Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday

through Friday, excluding legal holidays. The telephone number for the Reading Room is (202)

566

- 1744, and the tele phone number for the Air and Radiation Docket is (202) 566

- 1742

. An

electronic version of the public docket is available at www.regulations.gov. This site can be

used to submit or view public comments, access the index listing of the contents of the publ ic

docket, and to access those documents in the public docket that are available electronically.

When in the system, select “search,” then key in the Docket ID Number identified above. Also,

you can send comments to the Office of Information and Regulato ry Affairs, Office of

Management and Budget, 725 17th Street, NW, Washington, D.C. 20503, Attention: Desk

Officer for EPA. Please include the EPA Docket ID EPA

- HQ

- OAR

- 2007

- 1138 and OMB

Control Number 2060

- 0320 in any correspondence.