Supporting Statement for In formation Collection Request Reporting and Recordkeeping Requirements for Im portation of Nonroad Engines and Recreational Vehicles

EPA I CR 1723. 06
OMB Control Number: 2060
- 0320

June 2011 Comp liance and I nnovative Strategies Division Office of Transportation and Air Quality Office of Air and Radiation U.S. Environmental Protection Agency1

1. I DENTI FICATION OF THE INFORMATION COLLECTION (a) TI TLE OF THE INFORMATION COLLECTION Reporting a nd Recordkeeping Requirements for I mportation of Nonroad Engines and Recreational Vehicles (Renewal) , OMB #2060
- 0320, I CR #1723.0 5
. (b) SHORT CHARACTERI ZATION (ABSTRACT) The Clean Air Act requires that motor vehicles and motor vehicle engines impor ted into the U.S. conform with applicable emission requirements. The Clean Air Act Amendments of 1990 extended these requirements to nonroad engines. This I nformation Collection Request (I CR) includes the importation of outboard spa rk ignition (SI ) marine engines; person al watercraft SI marine engines; non - propulsion compression ignition (CI ) engines used in marine applications ; small nonroad SIengines (less than 25 horsepower), used, for example, in som e lawn and garden equipment; and other nonroad CI en gines such as construction equipment and farm tractors. Finally , this I CR 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: lo comotives and locomotive engines; large (greater than 50 horsepower) marine CI engines; nonroad recreational vehicles such as snowmobiles, all
- terrain vehicles (ATVs), and off
- highway motorcy cles; and large nonroad SI engines used in such things as forklif ts and compressors. The Compliance and I nnovative Strategies Division (C IS D) in the Office of Air and Radiation collects information and requires some recordkeeping to help ensure that nonconforming engines are brought into compliance with Federal emission requirements, unless eligible for exemption or exclusion. Also, the information is used by the U.S. Customs Service (Customs), State regulatory agencies, businesses, and individuals to determine whether engines are in compliance. In formati on 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 unde r which it is being imported. The information is retained 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 impo rted engines. a) EPA Form 3520
- 21. This form is used by importers who are apply ing for entry of nonroad engines. Form 3520
- 21 has been routinely used since I CR 1723.01 was approved in 1995. As such, we don't find it necessary to include the expira tion date on the front page of the form. The OMB control number, EPA form number, and Paperwork Reduc t ion Act statement are appropriately

display ed on the form. b) EPA Form 3520
- 8. This form is used by independent commercial importers (I CI s) to request final admission (as opposed to initial declaration, which is covered by EPA Form 3520
- 12

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 IC Is have been light
duty vehicle importers under 40 CFR Part 85, Subpart P. There have also been a few on
- road motorcy cle I C I imports. The above
- named uses of Form 3520
- 8 are also covered by OMB 2060
- 0095 (I CR 0010). R egulations for I CIimports of nonroa d CI engines are also set forth at 40 CFR Part 89, Subpart G and contemplate requests for final admission of these engines
. However, b ecause this program is not y et active, only a placeholder burden is included here , so that this IC R covers all nonroad im ports . The information collection will involve an estimated 4,801 respondents at a n estimated labor cost of $ 261,479 and a capital/startup and O&M cost of $3 8 ,002. 2. NEED FOR AND USE OF THE COLLECTI ON (a) NEED/AUTHORI TY FOR THE COLLECTI ON Joint EPA and Customs 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 collection of information. The collection of this information hel ps 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 could not confirm that engines being imported conform to the emission requi rements of the Act, and, consequently , would not be able to allow importation of these engines. (b) USE/USERS OF THE DATA The Compliance and I nnovative Strategies Division receives the information either directly from the importers or indirectly fr om the importers through Customs. 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 entry 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. NONDUPL IC ATI ON, CONSUL T ATI ONS, AND OTHER COL LECTION CRITERIA (a) NONDUPLICATION Because the information collected is specific to identifying the appropriate regulated category and appropriate regulatory provisions for imported nonroad 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.3

(b) PUBLIC NOTICE EPA solicited public comment by means of a Federal Register Notice published on ____, , __ Federal Register ___; a copy can be found at _____________ . The draft I CR was placed in the docket. ( c) CONSUL TATI ONS The following r epresentatives and manufacturers of imported nonroad engines were also consulted to further define the burden that will be involved in handling Form 3520
- 21
. Mark Perk General Motors, Electromotive Division 2021 Oxford St. Lo ndon, Ontario N5V2Z7 Canada 519
- 459
- 5953 Bruce Bradley

and Edward Mey er Nissan Forklift Corp., Nort h America 240 North Prospect Street Marengo, I llinois 60152 815
- 568
- 0061 and 815
- 568
- 4779 Ed Klim In ternational Snowmobile Manufacturers Association 1640 Haslett Rd., St. 170 Haslett, MI48840 517
- 339
- 7788 (d) EFFECTS OF LESS FREQUENT COLLECTI ON S ince reporting is done only at the time of entry , 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 allo w 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. (e) GENERAL GUI DELINES This I CR requires that in the event of nonroad CI I CIimports, the importer notify EPA4

when requesting final admission for vehicles (Form 3520
- 8) ; this m ight occasionally result in reporting more often than quarterly . This requirement is necessary for E PA to inspect vehicles prior to release from the I CI . I f EPA required quarterly reports, either the I CI 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 I CI
. Additionally , EPA's regulations require that any such nonroad CI IC Is retain records for eight y ears from the date of final admission (40 CFR 86.607(a) ) . For comparison , the Clean Air Act requires that light duty vehicles meet Federal emission standa rds throughout their useful lives, which is defined by the Clean Air Act to be 10 y ears or 100,000 miles. The i mports regulations further specify that the useful life period starts from the date that the vehicle is delivered to the owner by the I CI . There fore, because of this requirement, compliance documentation must ordinarily be maintained six y ears from the date of entry
. (f) CONFI DENTI ALITY Any information submitted to the Agency for which a claim of confidentiality is made will be safeguarde d according to policies set forth in Title 40, Chapter 1, Part 2, Subpart B
- Confidentiality

of Business I nformation (see 40 CFR 2.201 et seq .). The public is not permitted access to information containing personal or organizational identifiers. This co llection complies with the Privacy

Act of 1974 and OMB Circular A
- 130. (g) SENSI TI VE QUEST IO NS No sensitive questions are asked. 4. THE RESPONDENTS AND THE I NFORMATI ON REQUESTED (a) RESPONDENTS/NAI CS CODES The Compliance and I nnovative Str ategies Division collects information from individual importers and both small and large companies who import, or import and manufacture nonroad engines and recreational vehicles. The NAI CS codes for the respondents are as follows: Non
- road compression i gnition 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 constru ction machinery 333131 Manufacturers of mining machinery and equipment 333132 Manufacturers of oil and gas field machinery and equipment5

811112, 811198 Commercial importers of vehicles and vehicle components 33631 Manufacturers of motor vehicle gas oline engine and engine 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 e ngine parts manufacturing 336999 Other transportation equipment manufacturing 336911 Motorcy cle, bicy cle and parts manufacturing Marine outboard and personal watercraft engines 333618 Manufacturers of marine spark ignition engines 333112 Manufa cturers of recreational marine vessels 336611 Ship building and repair 336612 Boat building 336999 Other marine outboard and personal watercraft manufacturing 441222 Motorcy cle, boat, and other motor vehicle dealers Lo comotive engines 333618 M anufacturers of locomotives and locomotive engines 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 an d boat building; ship building and repair 811310 Engine repair and maintenance 483 Water transportation, freight and passenger 336612 Boat building (watercraft not built in shipy ards and ty pically of the ty pe suitable or intended for personal use) 4 41222 Motorcy cle, boat, and other motor vehicle dealers Recreational vehicles, including snowmobiles, all
- terrain vehicles, and certain high
- speed utility vehicles 336991 Motorcy cle manufacturers 336999 Snowmobile and all
- terrain vehicle manufactur ers 441222 Motorcy cle, boat, and other motor vehicle dealers6

Large nonroad spark
- ignition engines 333618 Manufacturers of new nonroad spark
- ignition engines 333111 Manufacturers of farm equipment 333112 Manufacturers of construction equipment 3 33924 Manufacturers of industrial trucks 811310 Engine repair and maintenance (b) I NFORMATI ON REQUESTED (i) Data I tems The data requested in reports include:

- engine identification number

- engine make

- engine model

- model y ear of the engine

- port of entry

- date of entry

- entry number

- importer name, address and telephone number

- broker name, address and telephone number (optional)

- owner name, address and telephone number (opt ional)

- identification of the ty

pe of vehicle or engine by regulatory

category

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

- justification for an exclusion or exemption, if applicable (ii) Respond ent Activities To complete the collection, the respondent would:

- read form instructions

- collect data and complete forms

IN FORMATI ON REQUI REMENTS FOR IM PORTATI ON OF NONROAD CI ENGI NES 40 CFR PART 89 SUBPARTS G AND J7

IN FORMATI ON REQUI REMENTS CI TATI ON I. I CIrequirements Reporting

- Certification application and 89.603(d) production changes

- Notification of transfer to another I CI 89.604(c)(4)

- Notification of acceptance of responsibility 89.604(d)

- Appl ication for final admission 89.605(a) (certified engine)

- Application for final admission 89.609(b) (modification/test engine)

- Attestation regarding maintenance 89.610 instructions, warranties and emission labeling

- Reply to notic e 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 em ission labeling
II. Requirements apply ing to all importers

- Notification of conditional admission 89.604(a)

- Request for prior approval 89.611 89.909 IN FORMATI ON REQUI REMENTS FOR IM PORTATI ON OF SMALL NONROAD SI ENGI NES8 40 CFR PART 90 S UBPARTS G AND J IN FORMATI ON REQUI REMENTS CI TATI ON

- Notification of conditional admission 90.604(c), 90.611(a)

- Request for prior approval 90.612 90.909 IN FORMATI ON REQUI REMENTS FOR IM PORTATI ON OF MARI NE SI ENGI

NES IN CL UDI

NG MARI

NE OUTB OARD AND PERSONAL WATERCRAFT ENGI NES 40 CFR PART 91 SUBPARTS H AND K IN FORMATI ON REQUI REMENTS CI TATI ON

- Notification of conditional admission 91.703 (b)

- Request for prior approval 91.704 91.1009 IN FORMATI ON REQUI REMENTS FOR IM POR TATI ON OF NON
- PROPUL SI ON CI ENGI NES USED I N MARI NE APPL IC ATI ONS 40 CFR PART 89 SUBPARTS G AND J IN FORMATI ON REQUI REMENTS CI TATI ON

- Notification of conditional admission 89.604(a)

- Request for prior approval 89.611 89.909
IN FORMATI ON REQUI REMENTS FOR IM PORTATI ON OF LOCOMOTI VES OR L OCOMOTI VE ENGI NES 40 CFR PART 92, SUBPARTS I AND J IN FORMATI ON REQUI REMENTS CI TATI ON9

B Notification of conditional admission 92.803

B Request for prior approval 92.804 92.909 IN FORMATI ON REQ UI REMENTS FOR LARGE MARI

NE CIENGI

NES 40 CFR PART 94, SUBPARTS I AND J IN FORMATI ON REQUI REMENTS CI TATI ON

B Notification of conditional admission 94.803

B Request for prior approval 94.804 94.909 IN FORMATI ON REQUI REMENTS FOR IM PORTATI ON OF OTHER NONROAD ENGI NES 40 CFR PART 1068 SUBPARTS C AND D IN FORMATI ON REQUI REMENTS CI TATI ON

B Notification of conditional admission 1068.301

B Request for prior approval 1068.301
5. THE I NFORMATI ON COL LECTED
-- AGEN CY ACTI VI TI ES, COL LECTION METHODOLOGY, AND I NFORMATI ON MANAGEMENT (a) AGENCY ACTI VI TI ES The Compliance and I nnovative Strategies Division receives the information as required from Customs, individuals , and businesses. After receiving the informati on, EPA uses 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 inquires. (b) COL LECTION METHODOLOGY AND MANAGEMENT Both Customs and the Compliance and I nnovative Strategies Division use the information to determine if engines meet EPA requirements. The Compliance and I nnovative Division retains information in document form in order to respond to public, State governm ent, and Federal government inquires, which are handled by C IS D staff. The documents are maintained by an EPA contractor. (c) SMALL ENTITY FLEXIBILITY10

Small entities are required to submit the forms covered by this I CR 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 information is not subject to a collection schedule, but is collected at the time of eng ine entry and , in the event of a non
- road I CIimport, when the engine is ready for approval by

EPA of final admission. 6. ESTI MATI

NG THE BURDEN AND COST OF THE COLLECTI ON 6(a) ESTI MATI

NG RESPONDENT BURDEN I. I CIRecording, Recordkeeping and Testing Burd en for Nonroad CI engines A. Reporting Burden Est. Est. # of Est. of (hrs/ instance ) instances /y r Burden (hrs) Form 3520
- 8 0. 81 1 0. 81 B. Recordkeeping Form 3520
- 8 & other required I CI 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/y r B urden (hrs) All categories 0. 50 1 2 ,000 6,00011 TOTAL BURDEN = 6,02 9.31 hrs

6(b) ESTI MATI

NG RESPONDENT COST LABOR COSTS: I. I CIRecording, Recordkeeping, and Testing for N onroad CIengines Estimated Labor Units Costs A. Reporting 1 form $ 35.13 @$ 43.37 per hour B. Recordkeepi ng 1 engine $ 10. 12 @$ 20.24 per hour C. Testing 1 engine $ 1,214.36 @ $ 43.37 per hour II. Reporting Form 3520
- 21 Hours Cost All categories 6,000 $ 260,220 @ 43.37 per h our Total L abor Cost $ 261,479 CAPI TAL/STARTUP & O&M I. I CIRecording, Recordkeeping, and Testing for Nonroad CI engines Brokerage cost covering testing and application
- related

1 engine at $1 4 ,000 per engine $ 14 ,000 II. O&M Costs For Record St orage

12,00 1 forms at $2 per form $24,00 2 Total Capital/Startup and O&M Costs $ 38 ,00 212

(i) Labor Costs Rates for engineering managers, mechanical engineers, and secretaries (except legal, medical, and executive) are from the May 200 6 BLS National Occupational Employ ment and Wage Estimates ( http://www.bls.gov/oes/current/naics4_336100.htm , accessed June 1, 2011 ). With a 160% overhead multiplier, these are $ 60.53 , $ 43.37 , and $ 20.24 , respectively . Test labor costs are $ 43.37 per hour (ii) Capital /Start
- up Costs Capital/start
- up costs are predominantly incurred by

I CI s during the required certification process, which is covered by other IC R s . IC Is in the on
- road program ty pically 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 fro m the previous renewal of this I CR. (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 recordkeeping cost for broker form retention
. 6(c) ESTI MATI

NG AGENCY BURDEN AND COST The imports program is administered by EPA ’ s C ompliance and I nnovative Strategies Division. Forty percent of one Full Time Equivalent employ ee (FTE) , GS 12/3; twenty percent of one Senior Environmental Employ ment ( SEE) Program employ ee 1 (about 400 hours); and a portion of the work assignment under a government contract are allocated to i mports activities. Based on the 2011 Office of Personnel GS pay schedule for Detroit , EPA estimates a ye arly $ 79,780 for the FTE, t hen multiplies the hourly rate by the standard government benefits multiplication factor of 1.6, for a cost of $ 51,060 plus $ 9,939 for the SEE, and $ 145,000 is estimated for the contractor. The contractor e stimate is based upon the work assignment rathe r than an estimate of hours. An estimated total Agency cost of $ 205,999 per y ear is allocated to i mports activities. An estimated 70% of these activities currently involve on
- road imports (I CR 0010; OMB 2060
- 0104); consequently $ 67,199 is the estimate for the agency cost for purposes of this I CR. 6(d) REASONS FOR CHANGE I N BURDEN
1 The SEE Program is an employ ment program for older workers authorized by the Environmental Programs Assistance Act, passed by Congress in 1984, and provides emplo ym ent opportunities to senior citizens aged 55 and over.13

As with the prior renewal , this I CR bases the burdens on an estimate of the actual Form 3520
- 21s received by

EPA . The estimated 12,000 Form 21s received per y ear is considered accurate within 10%. In addition, as with the prior renewal , a hy pothetical burden of 1 engine is included as a placeholder for t he burden associated with I CI importation of nonroad CI engines remains the same. 6(e) BURDEN STATEMENT The annual public reporting and recordkeeping burden for this collection of information is estimated to average 30 minutes per response. Burden means the total time, effort, or financial resources expended by

persons to generate, maintain, retain, or disclose or pr ovide information to or for a Federal agency . This includes the time needed to review instructions; develop, acquire, install, and utilize technology and sy stems for the purposes of collecting, validating, and verify ing information, processing and maintai ning information, and disclosing and providing information; adjust the existing way s 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 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 display s a currently valid OMB control n umber. The OMB control numbers for EP A ’ s regulations are listed in 40 CFR part 9 and 48 CFR chapter 15. To comment on the Agency 's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respon dent burden, including the use of automated collection techniques, EPA has established a public docket for this I CR under Docket I D Number EPA
- HQ
- OAR
- 2007
- 1138 , which is available for online viewing at www.regulat ions.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 th rough Friday , excluding legal holiday s. The telephone number for the Reading Room is (202) 566
- 1744, and the telephone number for the Air and Radiation Docket is (202) 566
- 1742
. An electronic version of the public docket is available at www.regulations.g ov. This site can be used to submit or view public comments, access the index listing of the contents of the public docket, and to access those documents in the public docket that are available electronically . When in the sy stem, select “search,” then ke y in the Docket I D Number identified above. Also, y ou can send comments to the Office of I nformation and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, D.C. 20503, Attention: Desk Officer for EPA. Please include the EPA Docket I D EPA
- HQ
- OAR
- 2007
- 1138 and OMB Control Number 2060
- 0320 in any correspondence.