1

Recordk eeping and Periodic Reporting of the Production, Import, Recycling, Destruction, Tran shipment , and Feedstock Use of Ozone
- Depleting Substances (Ren ewal)

PART A OF THE SUPPORTING STATEMENT 1. I dentification of the Information Collection **(a) Title**  **:** Recordk eeping and Periodic Reporting of the Production, Import, Recycling, Destruction, Tran shipment , and Feedstock Use of Ozone
- Depleting S ubstances (Renewal) OMB Number: 2060
- 0170 EPA IC R Number: 1432. 30 **(b) Short**  **Characterization** The Montreal Protocol on Substances that Deplete the Ozone Layer (Protocol) and Title VI of the Clean Air Act Amendments of 1990 (CAA) established limits on total U.S. production, import, and export of Class I and Class II controlled ozone depleting substances ( ODS s )
. Under its Protocol commitments, the United States has been obligated to cease production and import of Class I controlled substances with exemptions for essential uses, critical uses, previously used material, and material that will be transformed, destroyed, or exported to developing countries. The Protocol also establishes limits and reduction schedules leading to the eventual phaseout of Class II controlled substances with similar exemptions beyond the phaseout. Additionally , the CAA has its own limits on production and consumption of controlled substances that EPA must adhere to and enforce. To ensure the United States’ compliance with the limits and restrictions established by the Protocol and the CAA, the ODS phase out regulations establish control meas ures for individual companies. EPA monitors compliance with the limits and restrictions for individual United States companies through the recordkeeping and reporting requirements established in th e regulations at 40 C FR part 82, s ubpart A. To submit required information, regulated entities can download reporting forms from EPA’s stratospheric ozone web site (http://www.epa.gov/ozone/record/index.html ), complete them, and then send them to EPA via U.S. Mail or fax. Upon receipt of the reports, EPA enters and stores the data in the ODS Tracking S ys tem. The Tracking Sy stem is a secure database that maintains all of the data that is submitted to EPA and allows the Agency to: (1) track over total production and consumption of controlled substances to satisfy conditions of the CAA and fulfill the United States obligations under the Protocol; (2) monitor compliance with limits and restrictions on production, imports, exports, and specific exemptions to the phaseout for individual U.S. companies; and (3) enforce against illegal imports and violations related to the control of Class I and Class II substances. Additionally , reporting on the exemptions allows an entity to retain the benefit of being able to produce or import a controlled Class I ODS beyond the date of complete phaseout.2

In 2008, EPA beg an using an electronic reporting sy stem for producers, importers, and exporters of Class IODS (except methyl bromide)
. The electronic reporting s ys tem operates through the Agency ’s Central Data Exchange (CDX) and allow s regulated entities to download, complete, and submit reports electronically
. Electronic reporting can reduce time and resources spent fulfilling reporting requirements, reduce the use of paper, and improve the quality of the data. Pursuant to regulations 40 CFR p art 2, subpart B, reporting businesses are entitled to assert a business confidentiality

claim covering any

part of the submitted business information as defined in 40 CFR Part 2, Subpart B
. Detailed burden and costs calculations for respondents and the Agency are presented in Section 6 of this document. The burden and cost estimates for respondents decreased in this I CR because the phaseout o f Class I controlled substances has continued, per international agreement under the Protocol, and thus less reporting is taking place
. Increases in the average hourly wage rate for industry c aused b y normal inflation contribut ed to higher respondent costs overall , but the total burden hours, including tot al burden hours per respondent, are less
. EPA also refined its estimates based on more recent information from respondents
. The burden and cost estimates for the A gency decreased largel y because the use of electronic reporting as well as the progressed phaseout of Class I ODS. 2. Need For, and Use Of, the Collection **(a) Authority**  **for the Collection** This information coll ection is authorized under the S ection 603(b) of the Clean Air Act and Article 7 of the Protocol
. Section 603 (b) of the Clean Air Act , “Production, import, and export level reports,” mandates that each person who produces, imports, or exports a Class I controlled substance file a report stating the amount of the substance that was produced, imported, and exported by

that person during the preceding reporting period. Article 7 of the Protocol, “Reporting of data,” requires the United States to provide specific data annually on its production, imports, and exports o f each controlled substance. **( b)**  **Practic al Utility/Users of the Data**  The reporting and recordkeeping re quirements for Class I ODS will enable EPA to: 1. Ensure compliance with the restrictions on production, import, and export of ozone
depleting substances; 2. A llow exempted production and import for certain uses and the consequent tracking of that production and import; 3. Address industry

and Federal concern s regarding the illegal import of mislabeled used controlled substances; 4. Satisfy

the United States’ obligations to report data under Article 7 o f the Protocol;3

5. Fulfill statutory

obligations under Section 603(b) of the CAA for reporting and monitoring; and 6. Provide information to report to the U .S
. Congress on the production, use , and consumption of Class I controlled substances as statutorily required in Section 603(d) of Title VI of the CAA
. EPA stores and anal yz es the reported information to ensure companies do not exceed their allowances
. In this regard , the information in the reports is used for compliance monitoring for individual companies and for monitoring U.S. compliance with its obligations under the Protocol. In formation that is collected on the production, import, and export of controlled Class I substances is also used to develop the reports provided to the Ozone Secretariat to meet U .S. int ernational treaty obligations. Requirements to report the data annuall y are listed in Article 7 of the Protocol. Industry representatives and many Federal agencies, including EPA, are concerned about claims of fraudulent imports of control led substances that are mislabeled as used, recycled, or reclaimed. To this end, EPA has established a petition process to provide information for controlling the import of these material s and act as a deterrent to potential fraud. Under 40 CFR 82.13(g)(2), c ompanies that want to import used, recycled, or reclaimed controlled substances must provided detailed information in the form of a petition about the previous use and the futur e intended use of the substance. 3. Non duplication, Consultation, and Other Collection Criteria **(a) Non duplication**  All of the information requested from respondents under this I CR is required by statute (CAA §603(b)) and is not available from other information sources because it is proprietary information submitted by industry sources. **( b)**  **Public Notice Required Prior to ICR submission to OMB** A request for public comment for the renewal of this I CR was published in the Federal Register on November 30, 2011 (76 FR 74055)
. EPA received no comments by the January

30, 2012 deadline. EPA reached out to two stakeholders that are affected b y the IC R being renewed and subsequently

received one late comment. The commenter suggests EPA reduce the reporting frequency for CFC production (Class Isubstances) as no domestic company produces such material for emissive use any longer. While the comment does address general reporting issues related to ODS, suggesting a reduction in reporting frequency from quarterly

to annuall y would reduce the reporting effort and EPA’s internal tracking effort to 25% of current rates, such a regulatory

change would have to take place in regulatory effort separate from this I CR renew al. The comment, thus, falls out of the scope of this action. Nonetheless, EPA is going to consider the comment and whether reduced reporting in this particular instance is warranted. EPA finds4

quarterl y reporting of ODS is essential, generall y, when it com es to determining compliance issues and ensuring the U.S.’ compliance with the Montreal Protocol. **(c) Consultations**  Recordkeeping and reporting requirements were established in the original publi cation of the CFC phaseout and meth yl bromide rule s . Th is I CR (number 1432. 30 ) does not add any additional recordkeep ing or reporting requirements. To as sess the current burden, EPA anal yz ed recent reporting and tracking data. EPA also reached out to two stakeholders , one that works with CFCs and the other that works with methyl bromide. O ne comment was received, as discussed above in 3(b) . EPA had previousl y reached out to our methyl bromide stakeholders in 2006 via a side event at the annual MethylBromide Alternatives Organization meeting to discuss reportin g and tracking issues. Much detailed comment was received at that time. In addition, EPA routinely

communicates with the same stakeholders annuall y as we prepare an accounting framework associated with methyl bromide critical use. This substantive past and ongoing communication might explain why the stakeholder EPA reached out to regarding this ICR did not submit comments. **(d) Effects of Less Frequent Collection**  Less frequent collection of data would compromise EPA’s ability to meet statutory

requirements under Section 603 of the CAA to monitor producti on, import, and export levels. Further, less frequent collection of information would hinder EPA’s ability to identify

regulation violations. P enalties for violations are currentl y assessed at $32, 500 per kilogram per day , and therefore, frequent information collection is vital to pursue and enforce violations. Less frequent collection of data would also potentially place the United States in a non
compliance status under the Protocol. Quarterly reporting provides EPA with th e necessary time to take action if an individual reporting person or the United States as a whole were to begin to exceed the Protocol’s production, import, or export limits or the limits establis hed in Section 604 o f the CAA. Additionally, if the United States were to exceed the limits established in the Protocol it would undermine its ability to effectively

negotiate favorable positions in the international forum. **(e) General Guidelines**  This rule does not exceed any of the OMB guidelines found at 5 CFR 1320.5(d)(2)
. **(f) Confidentiality**  EPA informs the respondents that they may assert claims of business confidentiality for any of the information they

submit. Information claimed as confidential will be treated i n accordance with the procedures for handling information claimed as confidential un der 40 CFR part 2, S ubpart B , and will be disclosed to the extent, and by means of pro cedures, set forth in Subpart B. If no claim of confidentiality is asserted when the i nformation is received by EPA, it may

be made available to the public without further notice to the respondents (40 CFR 2.203).5

**(g) Sensitive Questions**  This section is not applicable because this ICR does not involve matters of sensitive nature. 4. Th e Respondents and the Information Request **(a) Respondents/SIC Codes**  The appropriate North American Industry Class ification Sy stem (NAICS) for potentially affected entities are listed below in Table I 1

. **Table I. NAICS Class**  **ification of Regulated Entities** 

**(b) Information Requested**  (i ) Data items, including recordkeeping requirements Recordkeeping and reporting requirements changed substantially after the phaseout of Class I controlled substances on January 1, 1996 (except methyl bromide which was phased
- out in 2005 ). Prior to the phaseout of Class I controlled substances , EPA administered a s ys tem of production and consumption allowances and monitored compliance through quarterl y reports. These ty pes of allowances no longer exist due to the phaseout of Class I controlled substances. For the exempted production and impor t of Class I controlled substances ( e.g., essential uses, quarantine and preshipment uses), EPA requires reporting and recordkeeping
. All producers, importers, exporters, distributors, applicators, and other s identified in 40 CFR 82.13 must record and/or report the following either on a quarterl y or annual basis as applicable (note, a comprehensive listing of rec ordkeeping and reporting requirements is listed in 40 CFR 82.13) : **I .**  **Producers:**  production of each controlled substance, including the quantity produced for uses resulting in its transformation and/or destruction by the producer ;  production of each controlled substance under the exemptions for export to Article 5 countries, essential uses, critical uses, and QPS uses ;

1 NAICS codes were retrieved from the “2002 NAICS Codes and Titles” provided by the U.S. Census Bureau at, http://www.census.gov/epcd/naics02/naicod02.htm
.

**Category NAICS Code**  Chemical Producers, Importers, and Exporters (CFCs) **3251**
- Basic Chemical Manufacturing Research and Development (Laboratories) **541710 -**  Research and Development in the Phy sical, Engineering, and Life Sciences MeBr Producers, Importers, Exporters, Distributors, and Applicators **325320 -**  Pesticide and Other Agricultural Chemical Manufacturing6  the amount of controlled substance sold or transferred during the quarter to a person o ther than the producer for use i n processes resulting in its transformation or eventual destruction;  for controlled substances provided to another entity for transformation , a copy of an IRS certification or intent to transform the same controlled substance for a particular transformer and a list of additional quantities shipped to that same transformer for the quarter;  for controlled substances provided to another entity for destruction , a cop y of a destruction verification from that entity and a list of quantities shipped to that entity for the quarter;  a list of U.S. purchasers of controlled substances that exported to an Article 5 country in cases when Art icle 5 allowances were expended during production;  a list of the essential
- use allowance holders, distributors of laboratory supplies and laboratory

customers from whom orders were placed and the quantity of specific essential
- use controlled substances requested and produce d;  certifications from essential use allowance holders stating that the controlled substances were purchased solely for specified essential u ses and will not be resold or used in any other manufacturing process;  in the case of laboratory essential uses, ce rtification from distributors of laboratory

supplies that controlled substances were purchase d for sale to laboratory customers who certify that the substances will only be used for essential laboratory

and analy

tical uses, and will not be resold or used i n manufacturing; or, if sales are made directl y to laboratories that the controlled substances will only

be used for essential laboratory and anal yt ical uses and will not be resold or used in manufacturing;  written certification that quantities of critical use methyl bromide were purchased b y distributors, applicators, or approved critical users to be used or sold only for critical uses;  for critical use methyl bromide , dated records such as invoices and order forms, and a log of the quantity of controlled substances produced solel y for export to satisfy

critical uses;  the amount of methyl bromide sold or transferred during the quarter to a person other than the producer solel y for QPS applications;  for methyl bromide produced for QPS uses, one copy of a certification that the material will be used only for QPS applications from each recipient of the material and a list of additional quantities shipped to that same person for the quarter;  quantities of methyl bromide exported by the producer and/or other U.S. companies in that control period, solely to satisfy the critical uses authorized by the Parties for that control period.7

**II. Importer s:**   the quantity of each controlled substance imported, either alone or in mixtures, including the percentage of each mixture that cons ists of a controlled substance;  the quantity of each controlled substance import ed that is used (including recycled or reclaimed) and the information provided in the petition required to import used quantities of Class I controlled substances;  the quantities of each controlled substance other than tran shipments or used, recycled or reclaimed substances imported for use in their transformatio n or destruction , and the quantity sold for use in processes that result in their destruction or transformation;  the quantities of controlled substances imported for approved essential or critical uses;  the amount of controlled substances sold or transferred during the quarter to each person for use in processes resulting in their transformation or eventual destruction;  for each quantity of a controlled substance imported: the date on which the controlled substance was imported; the port through which it passed ; the country from which it was imported; the commodity code for the shipment ; the i mporter number for the shipment; a cop y of the bill of lading for the import; the invoice for the import; and the U .S. Cust oms entry form;  dated records documenting the sale or transfer of the controlled substance for use in processes resulting in transformation or destruction;  copies of IRS certifications that the controlled substance will be transformed or destructio n verifications that it will be destroyed;  date d records of the quantity of controlled substances being purchased for essential and laboratory

uses or for eventual sale to laboratories that certify that controlled substances are for essential laboratory an d anal yt ical uses;  the amount of controlled substances sold or transferred during the quarter to e ach person for an essential use ;  certifications from essential
- use allowance holders stating that the controlled substances were purchased solely for specifie d essential uses and will not be resold or used in manufacturing; and the cer tifications from distributors of laboratory

supplies that the controlled substances were purchased solel y for eventual sale to laboratories that certify the controlled substances are for essential l aboratory

and analy

tical uses, or if sales are made directly to laboratories, verifications from laboratories that the controlled substances will only be used for essential laboratory and anal yt ical uses and will not be resold or used i n manufacturing;  in the c ase of laboratory essential uses , a certification from distributors of laboratory

supplies that controlled substances were purchased for sale to laboratory

customers who certify

that the substances will only be used for laboratory applications and will not be resold or uses in manufacturing;  for methyl bromide , dated records of the quantity of controlled substances imported for QPS applications and quantity sold for quarantine and preshipment applications;8  written certifications that quantities of methyl bromide imported solely for QPS applications were purchased b y distributors or applicators to be used only for quarantine and preshipment applications;  written verifications from a U.S. purchaser that methyl bromide imported solely for QPS applications upon receipt of a certification;  a list of the quantities of methyl bromide exported by the importer and or by other U.S. companies, to a Party to the Protocol that will be used solely for QPS applications;  in the case of importing a container with a heel, the amount brought into the United States with a certification that the residual amount in each shipment is less than 10 percent of the volume of the container and the fate of the container; a report indicati ng the final disposition of each shipment mus t also be submitted;  in the case of importing a used substance, a cop y of the petition submitted, the EPA non
- objection notice, and the bill of lading for the import; **III. Exporter**  **s :**   names and addresses of the exporter and the recipient of the exports;  the exporter’s Employer Id entification Number;  for each export: the ty pe and quantity

of each controlled substance exported and what percentage, if any , of the controlled substance i s used, recycled or reclaimed; the date on which, and the port from which, the controlled substances were exported to the United States or its territories; the country to which the controlled substances were exported ; the amount exp orted to each Article 5 country , and the commodity code of the controlled substance shipped ;  the invoice or sales agreement containing language similar to the Internal Revenue Service Certificate that the purchaser or recipient of importe d controlled substances, or d estruction verifications that the purcha ser or recipient intends to de stroy the controlled substances, or the certification that the purchaser or recipient and the eventual applicator will only us the material for QPS applications; **I V**  **. Persons**  **that destroy Class**  **I controlled substances:**  a one time report stating the des truction unit’s efficiency and the methods used to record the volume destro yed and those used to determine destruction efficiency and the name of other relevant federal or state regulations that may a pply to the destruction proc ess.9

**V . Persons that purchase/receive and subsequently destroy**  **Class I substances that**  **were originally produced without expending allowances :**   a destruction verification (to the producer or importer) containing the following:  the identity

and address of the person intending to destroy controlled substances;  indications of whether those controlled substances will be completely destroyed, or less than completely destro ye d, in which case the destruction efficiency at which such substances will be destroyed must be included;  period of time over which the person intends to destroy controlled substances;  signature of the verifying person;  the name and quantities of Class I controlled substances that were destro ye d at the end of the control period. **VI .**  **Persons that transform Class**  **I controlled substances:**  the name and quantities of Class I controlled substances transformed at the end of the control period;  in cases where Class I controlled substance s are purchased for transformation, the person who transforms the substance s is to provide the producer or importer with an IRS certification that the controlled substances are to be used in processes resulting in their transformation. **VI I.**  **Persons that trans s**  **hip Class**  **I substances:**  records that indicate th at the shipment originated in a foreign country destined for another foreign country , and does not enter interstate commerce with the United States
. **VIII .**  **Persons allocated essential -**  **use allo wances:**   quantities of each controlled substance received from each producer and/or each importer during that quarter and the country from which the controlled substance was imported; **I X**  **. Distributors of laboratory supplies receiving controlled substances under t**  **he global laboratory essential use exemption**  :  quantities received of each controlled substance from each producer or importer;  quantities of each controlled substance purchased by each laboratory

customer whose certification was previously provided to the distributor;  in cases where the distributor sells the Class I controlled substances as reference standards for calibrating equipment, the distributor must submit the quantity of each controlled substance purchased by each laboratory

customer whose certification was previously provided to the distributor.10

**X .**  **Persons that distribute quarantine and preshipment**  **methyl bromide :**   certifications provided to the producer or importer that quantities received that were produced or imported solely for QPS applications under the exemptions will be used only

for quarantine applications or preship ment applications;  certifications from applicators, prior to delivery of the quantity , that the quantity of methyl bromide ordered will be used solely for QPS applications;  the total quantity

delivered to applicators in which certifications were received that state the methyl bromide would be use solel y for QPS applications
. **XI. Persons that apply**  **quarantine and preshipment methyl bromide**  **:**  a document from the commodity owner, shipper or their agent requesting the use of methyl bromide citing the regulatory requirement that justifies its use;  a cop y of the c ertification (provided to the distributor before a shipment) that the quantity

of controlled substances will be used only for QPS applications. **X II**  **. QPS c**  **ommodity owner, shipper, or their agent:**   records for each request, certifying knowledge of the requirements associate d with the exemption for QPS applications; the record must include the certifying language listed in the regulation. **X I**  **II . Transfers of allowances for**  **Class I controlled substan**  **ces:**

 in cases of transfers of essential
- use CFCs :  the specific MDI products that the transferee plans to produce with the transferred CFCs;  the country(ies) where the CFC MDI produced with the transferred essential
- use CFCs will be sold if other than in the United States;  certification that the essential
- use CFCs will be used in the production of essential MDIs; if the MDI s are to be sold in the United States, the certificati on must state that MDIs produced with the transferred essential
- use CFCs are listed as essential and were approved b y the Food and Drug Administration before December 31, 2000; if the MDI s produced with the essential
- use CFCs are to be sold out side the Uni ted States, the transferee must verify that the MDIs produced with the essential
- use CFCs are considered essential b y the importing country ;  a letter from the transferor stating that it concurs with the terms of the transfer as requested b y the transferee;  in cases where the trade is international:  a signed document from the principal diplomatic representative in the Party ’s embass y in the United States stating that the appropriate authority

within the nation has approved the transfer of the essential
- use C FCs.11

**X IV**  **. Persons wanting to import**  **used Class**  **I controlled substance**   a petition containing:  name and quantity in kilograms of the used controlled substance to be imported;  name and address of the importer, the importer ID number, the contact person, and the phone number;  name, address, contact person, phone number and fax number of all previous source facilities from which the used controlled substance was recovered;  a detailed description of the previous use of the controlled substance at each source facility

and a best estimate of when the specific controlled substance was put into the equipment at each source facility , and, when possible documents indicating the date the material was put into the equipment;  a list of the name, make and model number of the equipment from which the material was recovered at each source facility ;  name, address, contact person, phone number and fax number of the exporter and of all persons to whom the material was transferred or sold after it was recovered from the sourc e facility ;  the U.S. port of entry

for the import, the expected date of shipment and the vessel transporting the chemical; if at the time of submitting a petition the importer does not know the U.S. port of entry , the expected date of shipment and the vess el transporting the chemical, and the importer receives a non
- objection notice for the individual shipment in the petition, the importer is required to notify the Administrator of this information prior to the actual U.S. Customs entry of the individual sh ipment;  a description of the intended of the used controlled substance, and, when, possible, the name, address, contact person, phone number and fax number of the ultimate purchaser in the United States;  name, address, contact person, phone number and fax number of the U.S. reclamation facility , where applicable; if someone at the source facility recovered the controlled substance from the equipment, the name and phone and fax numbers of that person;  if the imported controlled substance was reclaimed in a foreign Party, the name, address, contact person and fax number of any or all foreign reclamation facility(ies) responsible for reclaiming the cited shipment;  an export license from the appropriate government agency in the country of export and, if recovered in another country , the export license from the appropriate government agency in that country ;  if the imported used controlled substance is intended to be sold as a refrigerant in the U.S., the name an d address of the U.S. reclaimer who will bri n g the material to the standard required under Section 608 of the CAA, if not already reclaimed to those specifications;  a certification of accuracy of the infor mation submitted in the petition.12

In addition, all entities may be required to provide other such information that the Administrator may reasonably

require to comply

with requests from the Ozone Secretariat seeking information required b y decisions taken by the Parties to the Montreal Protocol. All reco rds and reports must comply with requirements for Class I controlled substances in Subpart A of the regulations. Reports and records associated with the reports listed above must be kept for three ye ars. All amounts must be reported in kilograms. These recordkeeping requirements pertain to original documents that are held by companies in the normal course of conducting business such as Customs entry

forms, accounts of daily

production runs, sales invoices, and bills of lading. In formation from th ese rec ordkeeping documents is summarized in reports. Recordkeeping requirements are designed to aid EPA in compliance monitoring, site inspection, and enforcement actions. ( ii) Respondent Activities Persons that produce, import, export, distribute, supply , transform, destro y, and appl y controlled Class I ODS are to maintain records and report to EPA or persons involved in transactions on a quarterl y, annual , or transactional basis as mandated by applicable sections of the regulations
. All records and repo rts must comply with applicable requirements specified in : §82.12 (d) (“Transfers of essential
- use CFCs ”), §82.13 ( “Recordkeeping and reporting requirements for Class I controlled substances.”). These records and copies of reports are to be maintained for three ye ars. 5. The Information Collected
- Agency Activities, Collection Methodology, and Information Management **(a) Agency Activities**

 Enter, maintain, and manage information submitted from companies in the ODS Tracking Sy stem;  Respond to companies submitting tracking/monitored information to confirm transactions and provide allowance balances ;  Review and respond to petitions submitted to import used Class I controlled substances;  Review information and conduct compliance monitoring activities related to restriction s on production, import, export, transformation, and destruction of Class I controlled substances for individual companies by comparing data with other sources of information;  Inspect records maintained by producers, importers, exporters, transformers, and destroyers of ODS ;  Review information in the Tracking S ys tem to ensure that the United States is not exceeding its obligations under the Montreal Protocol which limits production and consumption of controlled ODS;  Review information in the Tracking S ys tem to ensure exempted production and imports do not exceed limits statutorily set in Section 604 of the CAA ;  Compile reports mandated by United States obligations under the Montreal Protocol and the CAA , including rep orts to Congress and the Ozone Secretariat
.13

**(b) Collection Methods**  EPA provides reporting forms for regulated participants to use to report the required information. Reporting forms for Class Icontrolled substances, as well as guidance on completing the forms, are available on EPA’s website at http://epa.gov/ozone/record/classone.html
. Reporting forms can be sent to EPA in hard copy form. EPA also provides the option for some reports to be submitt ed electronicall y and is expanding electronic reporting opportunities
. The use of the reporting forms is voluntary , but they are generall y used b y every particip ant in the regulatory

program. The forms facilitate and streamline the submission of require d data for respondents. The reporting requirements, first promulgated in the July 30, 1992 , final rule, and then simplified and reduced through amendments published in the Federal Register on May 10, 1995 , reduced the administrative and reporting burden. In general, the regulatory program and the reporting requirements are smaller after the phaseout. As of January

1, 1996 (the post
- phaseout period), the sy stem of production and consumption allowances was no longer used, simplifying overall tracking and monitoring . New reporting and recordkeeping requirements exist, however, for the exempt uses of Class Isubstances
. The reporting procedures for the post
- phaseout period were selected for their administrative feasibility and minimal reporting burden. **( c)**  **Small Entity Flexibility** Much of this information coll ection is required b y statute. Additional information collection is undertaken to support the United States’ reporting obligations under the Protocol
. The information collection is required to 1) ensure essential
- use material is available to stakeholders , 2) develop these nationally and internationally

mandated reports, and 3) maintain compliance with S ection s 604 and 606 of the CAA. The burden on all affected entities, and especially the burden o n small entities, has been red uced to every extent possible. Laboratories, the only small entities required to submit information, are required to certify

purchases of exempted Class I controlled substances once per ye ar, indicating that they will onl y be used for laboratory or analy tical purposes and not be resold, and identifying the specific use to which the substance s will be put. This requirement is to ensure proper use of exempted production and import and to allow the United Sates to report specific information to the Secretariat to the Protocol regarding the use of ODS for laboratory purposes as required un der Annex II of Decision VI/9. All other respondents to the program are large companies.14

**(d) Collection Schedule**  After the phaseout on January 1, 1996:

 Producers, importers , exporters of meth ylbromide, laboratory suppliers , and distributors of QPS methyl bromide must report to EPA quarterly (45 days after the end of each quarter);  Exporters of non
- methyl bromide Class Icontrolled subst ances , and persons that destroy and transform Class I controlled substances (including methyl bromide) , are to report to EPA annually

( 45 day s afte r the end of the control period);  Persons wanting to trade essential use CFCs or import used Class I controll ed substances (i.e. petition) are to submit reports to EPA on a transactional basis.  All entities may

be required to provide other such information that the Administrator may reasonabl y require to comply with ad hoc requests from the Ozone Secretariat seeking information required b y decisions taken b y the Parties to the Montreal Protocol subsequent to the publication of this I CR. The Agency anticipates this, on average, to occur less than annuall y per prospective respondent
. 6. Estimating the Burden and Cost of Collection **(a) Estimating Respondent Burden**  The basis of the anal ys is is the identification of the principal steps involved in complying with EPA recordkeeping and reporting requirements and the estimated burden associated with each step. EPA identified 18 reporting activities which contain all information mandate d by EPA’s regulations (see Table I I . R espondent Burden for details). EPA estimated the number of respondents per reporting activity based on the quantity of respondents that submitted reports over the last several ye ars . The number of reports submitted per year is either four (quarterl y), one (annuall y), or other (per transaction)
. EPA estimated the amount of time for dat a compilation and report preparation by anal yz ing historical info rmation. The last three c ollection activities are not submitted to EPA, rather they are provided to another entity, such as a producer or importer, as mandated. T his ICR (1432. 30 ) does not add any additional recordkeeping and reporting requirements from the previous IC R.15

**Table II. Respondent Burden A**  **B C**  **D E**  **F G**  **Collection Activity: Recordk**  **eeping and Reporting**  **Number of**

**Respondents Responses per** 

**respondent per control period**  **Total**

**Responses** (AxB) **Data**

**Compilation (hours)**  **Report**

**Preparation (hours)**  **Hours**

**per Response**  (D+E) **Total**

**Hours per year**  (CxF) Producer's Report 7 4 28 2 0.5 2.5 70 Producer's Report (MeBr) 1 4 4 4 0.5 4.5 18 Importer's Report 5 4 20 4 0.5 4.5 90 Importer's Report (MeBr) 3 4 12 4 0.5 4.5 54 Exporter's Report 13 1 13 4 0.5 4.5 58.5 Exporter's Report (MeBr) 4 4 16 4 0.5 4.5 72 Destruction 7 1 7 4 0.5 4.5 31.5 Transformation 8 1 8 4 0.5 4.5 36 Essential Use Allowance Holders 0 4 0 4 0.5 4.5 0 Laboratory Supply/Distribution 8 4 32 4 0.5 4.5 144 Transfers of substances (int'l and domestic) 1 1 1 4 0.5 4.5 4.5 Transfers of allowances (int'l and domestic) 0 0 0 4 0.5 4.5 0 QPS MeBr Distributor Report 15 4 60 4 0.5 4.5 270 Petitions for used imports (for destruction) 3 11 33 1 0.5 1.5 49.5 Petitions for used imports (for reuse) 3 7 21 4 0.5 4.5 94.5 SUBTOTAL FOR REPORTI

NG TO EPA ONLY 78 54 255 55 7.5 62.5 992.5
QPS MeBr Applicator Certification 15 6 90 0.5 0.5 1 90 Commodity Owner, Shipper or Agent Recordkeeping (MeBr) 50 10 500 0.5 0.5 1 500

Lab Certification 1,000 1 1000 0.5 0.5 1 1000 SUBTOTAL FOR CERTIFICATIONS 1,065 17 1,590 2 2 3 1,590 **TOTALS (Respondents, Responses, and Hours)**  **1,143 1,845**  **2,583 TOTAL**  **- BURDEN HOURS**  **PER YEAR/ RESPONDENT**  **2.3 (b) Estimating**  **Respondent Costs** (i ). E stimating Labor Costs To determine the labor costs associated with recordkeeping and reporting , EPA used an hourl y industry wage rate of $ 50.08
. This is the average hourly wage rate for professional and related persons derived from the Bureau of Labor Statistics Employer Cost and Employee Compensation Table 2 (http://www.bls.gov/news.release/ecec.t02.htm ), September 8, 2011
. EPA added 11016

percent to the hourly

industry wage rate to reflect additional costs for overhead and fringe , increasing the wage rate to $ 105.15 per hour
. The total burden hours pe r year was estimated to be 2,583 hours , which when multiplied by the hourly

indu stry wage rate of $ 105.15 equals $271,550 for total yearl y costs. To determine ye arly costs per respondent, per report, EPA multiplied the burden hours per respondent per report by the average industry wage ($ 105.15 )
. See Table III below for details. **Table III. Yearly Respondent Costs Calculations Industry Wage**  **(includes overhead and fringe)**  **Total Burden Hours**  **Total Yearly Costs**
$105.15 2,583 **$271,550 Industry Wage**  **(includes overhead and fringe)**  **Total Burden**

**Hours/Respondent Total Yearly Respondent**  **Costs/Respondent** $105.15 2.3 **$238** (ii). Estimating Capital and Operations and Management Costs O peration and maintenance costs include expenses such as photocopying, packaging, and postage. Although variations may occur based on the quantity of the data submitted to EPA as well as the method in which the respondent submits the data (i.e. regular post or express mail), $3.00 was estimated to be the c ost per respondent per report. To determine the total capital and operations and management costs, 1, 8 45 (total responses) was multiplied by $3.00 and equaled $5, 5 35
. (iii). Capital and Start
- up Costs C apital and start - up costs were estimated to be $0 because new recordkeeping or reporting requirements have not been added to this I CR. Persons that are required to maintain records and report information have participated i n the program for several years. (iv). Annualizing Capital Costs Capital/start
- up costs were estimated to be $0

. **(c) Estimating Agency**  **B urden**  **and Costs**  To determine agency

and burden costs, EPA identified three main activities associated with recordkeeping and reporting: receiving and entering data submitted, reviewing data entries, and preparing and reviewing co mpany data balance statements. EPA then estimated hours per activity , per report received, per Agency staff member
. EPA also developed estimates for maintaining the Trackin g Sy stem and processing reports for the control period. See Table IV below for details.17

The hourl y wage rates for EPA technical and managerial staff were derived from the 2011 OPM hourly pay

table and then multiplied by 1.6, the standard government bene fits multiplier. The hourly wage rates are as follows: EPA estimates an average ho urly labor cost of $59.30 X 1.6 = $ 94.88 (GS
- 15 level) for managerial costs and $42.66 X 1.6 = $ 68.26 (GS
- 13 lev el) for technical staff. Each hour of extramural (contracto r) time is valued at $ 9 5 .00 per hour including overhead and fringe. The total was estimated to be $ 93,033 per year. This is less than the previous ICR ($106,057 per ye ar) for a number of reasons. As mentioned previously , Class I reports are reducing due to the continued phaseout o f Class I controlled substances
. Also, EPA revised managerial hours associated with review of the reporting forms (from .5 hours to .2 hours per form), as most questions and review are made at the technical level. **Table IV. Agency Burden and Cost**  **Agency Activity Number of**  **Reports Managerial** 

**Hours Technical** 

**Hours Extramural** 

**Hours Total Costs** 

**(Number of Reports x Labor**  **Costs) per Year**  **$94.88 $68.26**  **$95.00** 1. Receiving and entering data; 255 0 1 0 **$17,406** $68.26 2. Reviewing data entries; 255 0.2 1 0 **$22,245** $18.98 $68.26 ($4,840+$17,405) 3. Preparing and reviewing company data balance statements; 255 0.2 1 0 **$22,245** $18.98 $68.26 ($4,840+$17,405) 4. Maintaining ODS tracking system and reports NA 20 150 200 (20*$94.88) (150*$68.26) (200*$95) **$1,897.60 $10,239.00**  **$19,000.00 $31,136.60**  Total Annual Burden Hours **932 Grand Total Per Year =**  **$93,033 (d)**  **Estimating the Respondent Universe and Total Burden and Costs**  The values for respondent unive rse and total burden and costs are based on estimates of the number of respondents and hours to compile data and prepare reports. Historical data from reports submitted over the last several years and informal consultations w ith stakeholders were used to develop estimates
. Costs associated with compliance for EPA and respondents are averages and were estimated from publicl y available data sources
. The total burden hours for respondents decreased in this I CR because it refines the hourl y burden estimates for certifying the Quarantine and Preshipment use of methyl bromide and laboratory use of all ozone depleting substances. Increases in the average hourly wage rate for industry

caused by

normal inflation also contributed to high er respondent costs. Additionally , estimates were refined based on historical information. The total also reflects Agency practice of periodically

seeking necessary information from the regulated community through the use of its authority under Section 114 of the Clean Air Act. N o new recordkeeping and reporting requirements were added.18

**(e) Bottom Line Burden Hours**  **and Cost Tables** (i) Respondent Tall y To determine bottom line burden hours and costs for respondents , EPA estimated the total number of responses per control period
. The total number of responses for all respondents was calculated to be 2,583 hours
. Therefore, over the three year span of this I CR, the total hours estimated for compliance for respondents is estimated to be 7,749 hours ( 2, 583 x 3 ye ars ). (ii) The Agency

Tall y EPA estimated the amount of time required to complete each of the three main activitie s associated with the reports. Inaddition, hours and costs for maintaining the Tracking S ys tem and reporting forms were determined. Therefore, over the three ye ar span of this I CR , the total Agency cost is estimated to be $ 279,099 ($ 93,033 x 3 years ). **(f) Reasons**  **for Change in Burde n**  The burden and cost estimates for respondents decreased in this I CR because the phaseout of Class Icontrolled substances has continued, per international agreement under the Protocol, and thus less reporting is taking place
. In creases in the average ho url y wage rate for industry caused by normal inflation contributed to higher cost per respondent, but the total burden hours, including total burden hours per respondent, are less. EPA also refined its estimates based on more recent information from respon dents. **Table V. Burden Summary 1432.29**  **1432.3 0**  (I CR Renewal) (I CR Renewal) Respondents annual burden hours 2,810 2,583 Respondents annual labor costs $263,662 $271,550 Respondent capital/start
- up costs $0 $0 Respondents O&M costs $5,580 $5,5 35 Agency ’s annual burden hours 1,352 932 Agency ’s annual labor costs $106,057 $93,033 **(g) Burden Statement**  The annual public reporting and recordkeeping burden for this collection of information is estimated to average 2 hours per response. Burden means the total time, effort, or financial resources expended b y persons to generate, maintain, retain, or disclose or provide informati on to or for a Federal agency. This includes the time needed to review instructions; develop, acquire, install, and util ize technology and s ys tems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing way s to compl y with any previously

applicable instructio ns and19

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 other wise 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 curre ntl y valid OMB control number. The OMB control numbers for EPA's re gulations are listed in 40 CFR Part 9 and 48 CFR C hapter 15. To 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 I CR under Docket ID No . EPA
- HQ
- OAR
- 2011
- 0 891 , which is available for public viewing at the Air and Radiation Docket and Information Center in the EPA Docket Center (EPA/DC), EPA West, Room 3334, 1301 Constitution Ave., NW, Washington, DC. The EPA Docket Center Public Reading Ro om is open from 8:30 a.m. to 4:30 p.m., Monday through Fri day , 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 and Information Center is (202) 566
- 1742. An ele ctronic 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 public docket, and to access those documents in the public docket that are av ailable electronically . When in the sy stem, select “search,” then key in the Dock et ID Number identified above. Also, you can send comments to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washingt on, DC 20503, Attention: Desk Office for EPA. Please include the EPA Docket ID No . EPA
- HQ
- OAR
- 20 11
- 0 891 and OMB control number 2060
- 0170 in any correspondence. PART B OF THE SUPPORTING STATEMENT EPA did not develop Part B of the supporting statement beca use this ICR did not involve statistical sampling.