### Unless comment indicates that changes other than adjustment for inflation are needed, EPA

anticipates using the Supporting Statement for the 2008 renewal of the Reporting and Recordkeeping Requirements for the Enforcement Policy Regarding the Sale and Use of

Aftermarket Catalytic Converters (attached) for the 2012 renewal.

SUPPORTING STATEMENT FOR STANDARD FORM 83

- 1

REPORTING AND RECORDKEEPING REQUIREMENTS

FOR THE ENFORCEMENT POLICY REGARDING

THE SALE AND USE OF AFTERMARKET CATALYTIC CONVERTERS

PART A OF THE SUPPORTING STATEMENT

1. IDENTIFICATION OF THE INFORMATI ON COLLECTION

1(a) Title of the Information Collection

Enforcement Policy Regarding the Sale and Use of Aftermarket Catalytic Converters (Renewal). 51 FR 28114

- 28119, 28133 (Aug. 5, 1986); 52 FR 42144 (Nov. 3, 1987), 67 FR 319

- 320 (Jan. 3, 2002).

OM B No . 2060

- 0135; EPA ICR No. 1292.08

.

1(b) Short Characterization

The aftermarket catalytic converter policy (AMCC Policy) (51 Fed. Reg. 28114

- 28119, 28113 (Aug. 5, 1986); 52 Fed. Reg. 42144 (Nov. 3, 1987)) allows aftermarket automobile catalytic

conver ter manufacturers and reconditioners to compete with the automobile manufacturers for the aftermarket catalytic converter (AMCC) replacement market. Without this policy, it would be illegal, under section 203 of the Clean Air Act, 42 U.S.C. § 7522, to sel l or install AMCCs that do not conform exactly to the automobile manufacturers ’ original equipment (OE) versions of these parts. The policy also makes it possible for automobile repair shops, which are often small businesses, to take on a significant s har e of the AMCC replacement market. In doing so,

consumers ar e able to purchase replacement AMCCs at a much lower price than they would pay for

an OE catalytic converter. This helps to assure that vehicles will not create excessive air pollution

because mo torists are more likely to replace damaged catalytic converters if they can purchase the replacements at a cost that is significantly less than OE catalytic converters (cost savings resulting from the polic y are estimated to be about $750 million in 2008 d ollars).

T o assure that air quality will not be compromised, it was necessary to set standards for aftermarket catalytic converters, both for performance and durability. It was also necessary to

assure that appropriate applications are installed on veh icles (i.e., the AMCC has to be of a type and size appropriate for the vehicle application). To these ends, the followi ng reporting an recordkeeping requirements exist for AMCC manufacturers, reconditioners and installers:

Manufacturers : On a one

- time b asis fo r each type or line of AMCC manufactured, the manufacturer must report informatio n identifying the supplier, information regarding the physical2

specifications of each catalytic converter line produced, and information regarding pre

- production

testin g of the converters that show they meet the AMCC Policy’s emission reduction standards for certain specified vehicle applications (a single AMCC line can be used on a large number of vehicle applications). The original AMCC P olicy required that

, once prod uction had begun

, the

manufacturer would submit to the U.S. Environmental Protection Agency ( EPA )

, on a semi

- annual

basis

, the number of each type of AMCC manufactured and a summary of information contained on warranty cards or, at the option of the respon dent, copies of w arranty cards for all AMCCs sold. This reporting regarding sales and warranty information was eliminated in March 1999, with the stipulation that records must be maintained for five years and the information submitted to EPA

upon request.

Reconditioners : O n a one

- time basis, the catalytic converter reconditioner must report the identity of the company, a de scription of the test bench utilized for testing used catalytic converters

, and the intended vehicle application(s) for each catalyt ic converter type. All used catalytic converters must be tested individually to assure they are still functional. The original policy required reconditioners to report, o n a semi

- annual basis, the names and addresses of distributors along with the number of each type of converter sold to each distributor. This reporting requirement was also eliminated in March 1999, with the stipulation that records must be

maintained for five years and the information submitted to EPA upon request.

Ins tallers of AMCC s : Installers have no reporting requirements. They simply fil l out the warranty card and give it to the retail customer. They must also include a brief statement with each invoice stating the need for replacing the original catalytic converter. They al so tag each removed catalytic converter with a reference to the invoice for repair. The invoices are requ ired to be kept

for 6 months and t he removed (tagged) converters are required to be kept for 15 days.

2. NEED FOR AND USE OF THE COLLECTION

2(a) Need/Authority for the Collection

Section 203(a)(3) of the Clean Air Act (Act) prohibits removal or rendering inoperative of motor vehicle emission control equipment by commercial service establishments or any other person. It also prohibits t he causing of such acts. In addition, it prohibits the manufacture, sale or installation of devices that defeat the emission control components or design elements. The catalytic converter is the major emission control device used by motor vehicle manufac turers. Oxidation (two

- way) catalytic converters reduce hydrocarbons and carbon monoxide emissions,

while oxidation

- reduction (three

- way) catalytic converters (widely used since 1981) additionally reduce oxides of nitrogen emissions. If a vehicle is prop erly maintained, the catalytic converter frequently will not require replacement for th e life of the vehicle. If catalytic converters need replacement after the expiration of the automobile manufacturer emissi ons control warranty, the vehicle owner must p ay for the replacement

.

EPA has promoted vehicle emi ssions inspection programs with mandatory catalytic converter replacement where missing or non

- functioning catalytic converters are discovered. The EPA believes that the success of State and local gover nment programs of this type depends, in part, on the availability and cost of replacement catalytic converte rs. The average cost of a new OE catalytic converter is approxi mately $540

- $650 installed, a relatively high cos t of replacement that severely lim its their installation a fter the warranty period expires . This enforcement policy allows

the sale of low

- cost but effective alternatives to the OE catalytic converters . For the AMCC3

industry, including the installers, this is a multimillion dollar indust ry. Nearly 3,000,000 AMCCs are installed each year.

The popularity of these low

- cost replacement AMCCs and the need to assure air quality benefits while promoting local tampering inspect ion programs have led EPA to implement this policy for the manufact ure, sale, and installation of new non

- OE and used, reconditioned OE catalytic converters. Prior to the implementation of the policy , AMCC manufa cturers and reconditioners frequently sold catalysts that had little, if any, e fficacy. Manufacturers which m ade a quality product were not able to compete on a level playing field because muffler shops could purchase poor quality catalytic converters for half the price of better AMCCs and undersell the competition. The manufacturer reporting and recordkeeping r equirements h elp assure that proper

AMCCs are manufactured and dis tributed to installers and help assure proper retail level

installation of AMCCs

.

The installer requirements exist to enable EPA to monitor whether correct applications are

made at the retail level and whether OE catalytic converters are replaced with AMCCs only in appropriate circumstances ( e.g. , the original equipment catalytic converter should not be replac ed

with an AMCC while the vehicle is still covered by its emissions warranty). A strong incentive exists for cheating; for example installing a used, untested catalytic converter would cost less than half the price of a properly tested used catalytic converter.

These are important conditions to the installation of aftermarket or re conditioned cata lytic

converters. An improper application ( e.g. , a 2

- way catalytic converter on a vehicle that needs a 3

- way catalytic converter) will result in much higher emissions of harmful pollutants than a proper application would. Likewise, replac ement of the original catalytic converter when the repair is not needed can result in an increase in emissions since working OE catalytic converters are generally

more effi cient than AMCC s.

2(b) Practical Utility/Users of the Data

PRACTICAL UTILIT Y

The collection of information is necessary for the proper performance of the functions o f

EPA , and the information collected will have pr actical utility. Without the AMCC reporting and recordkeeping requirements, enforcement would be nearly impossible. For example, testing is required to determine whether a used catalytic converter is still effective. As another example, t he

effic acy of new AMCC s for particular vehicle applications cannot be determined without prototype testing and information on spec ifications.

All testing is to be conducted by the manufacturer or reconditioners, and therefore EPA

belie ves that it is important that EPA have access to testing records. A record of the names and addresses of dealers and distributors, as is required i n the policy, allows for prompt notification of these parties in the event of such an enforcement action.

The primary use of the sales and warranty card information is for direct compliance action. Warranty cards often reveal direct evid ence of misapp lication or failure to provide the required

warranty . Sales information from recon ditioners provides an indirect way to assure that production is not exceeding the capacity of the test stand, and provides EPA with a list of di stributor or retail

faciliti es for enforcement audits and testing.4

The instal ler requirements are needed to assure installation of ap propriate AMCC applications and to assure that catalytic converters are only replaced when necessary. Some repair shops could gain an unfair advant age if they were to install cheaper 2

- way converters on vehicles requiring 3

- way converters. Repair shops could also improperly benefit, at cost to both the consumer and ambient air quality, if OE catalytic converters are replaced when they are still

func tional or when they are still within the warranty period.

The requirements also facilitate knowledge on the part of the installers of AMCCs and of the driving public that the catalytic converters they are using are appropriate and effective and that

no potential liability should exist for the insta ller so long as the suitable catalytic converter is

installed on each vehicle.

USERS

Air Enforcement Division, Office of Civil Enforcement, Office of Enforcemen t and Compliance Assurance, EPA . As noted a bove, the requirements also assist industry by assuring a level playing field and by as suring installers and their customers that the catalytic converter to be installed is effective and appropriate for the vehicle ( e.g. , 3

- way converter of proper capacity on vehicle that needs a 3

- way catalytic converter ).

3. NONDUPLICATION, CONSULTATIONS, AND OTHER COLLECTION CRITERIA

3(a) Nonduplication

The information collection is not unnecessarily duplicative of information otherwise reasonably accessible to E PA . The required warranty provisions and the manufacturer reports and test records are the only records of their kind available to document the information needed to determine compliance.

3(b) Public Notice Required Prior to ICR Submission to OMB

In compliance with the Paperwork Reduction Act, a public comment period of 60 days was

annou nced in the Federal Register (73 Fed. Reg. 56817

- 9 (September 30, 2008 )) regarding this proposed renewal ICR. No comments were received. However, we have conti nued to update burden and cost information and this ICR Supporting Statement, the associated Form 83

- I and the second Federal Register notice reflect these changes.

The ICR estimated burdens and costs that are being submitted to OMB for this renewal

h ave been revised and updated to reflect wage and inflation increases, as well as estimated current workloads and corresponding burden times for installers, reconditioners and manufacturers. An additional estimate has been continued in this ICR regarding am ortized startup cos ts for new

AMCC installation businesses. A second Federal Register notice is being published announcing the submission of this Policy to OMB for approval.

3(c) Consultations

For this ICR, EPA has contacted various affected industry respondents for information regarding burdens and costs. Following is a list of non

- EPA contacts, by name, phone number and5

affiliation:

1. Joe Kubsh

, Executive Director

, Manufacturers of Emission Controls Assoc. (MECA) phone: 202

- 296

- 4797 ext 114

. 2 . Pat Haynes, Tenneco Automotive, phaynes@tenneco.com

. 3

. Barry Hills, President, Canammex Exhaust, 954

- 941

- 9109

4

. He lamon Andre, KGC Warehouse, 417

- 276

- 3059.

5 . Harley Mayer, Jr ., Kataco Creek Converters, 800

- 275

- 5116.

6. Paula Couch, Brown Rec ycling Mfg., Inc., 256

- 778

- 8756.

3(d) Effects of Less Frequent Collection

The information requested from the manufacturers would normally be kept as part of their records, and should not constitute a significant burden to maintain. Additionally, the in for mation requested is the minimum considered necessary to adequately monitor the AMCC market and properly enforce the policy. Note that the manufacturers and reconditioners are voluntarily accepting recordkeeping burdens as a condition of EPA not bringi ng actions for violation of section 203 of the Clean Air Act. EPA is willing to allow the sale of catalytic converters not certified to meet OE standards only if it can i nsure that AMCC s meet the less strict standards of the policy and that they are prope rly installed.

The product development information requested is only collected when a new product

line is introdu ced by an AMCC manufacturer. Less frequent collection of test results would allow

some AMCC s to reach the market without proof of suff icient emission testing to verify their

effectiveness. Semi

- annual reports of production or sales information are no longer required. Each

used cata lytic converter that is reconditioned must be tested, since the condition of the used catalytic converters varies wid ely

.

No reporting is required for installers. The recordkeeping must accompany installation since there is no way to collect the information afterward.

3(e) General Guidelines

The collection is in compliance with OMB guidelines exc ept that new AMCC manufacturers are required to keep warranty cards for 5 years. Because the warranty period for the converters is 5 years, this length of document retention time is necessary. This requirement is also in line with the applicable statute of limitations. EPA has not received negative comment regarding this maintenance period from the industry.

3(f) Confidentiality

Confidentiality protections are provided pursuant to 40 C.F.R. § 2.201 et seq.

3(g) Sensitive Questions

This section i s inapplicable to this ICR.

4. THE RESPONDENTS AND THE INFORMATION REQUESTED6 4(a) Respondents/SIC Codes

Respondents include the manufacturers of new AMCC s and rec onditioners of used catalytic converters. The SIC code is 346 (NAICS 336399) . The other respondents are automobile exhaust repair facilities. Their SIC code is 7533 (NAICS 811112).

4(b) Information Requested

(i) Data Items, Including Recordkeeping Requirements

This ICR indicates for each recordkeeping requirement the leng th of time persons are required to maintain the records specified.

O NE

- TIME R EPORTING :

Parties required to submit one

- time AMCC testing information include all manufacturers of

new non

- OE converters . Parties required to provide a report on a on e

- time basis to EPA include reconditioners of used OE catalytic converters.

Specifications Information for each new product line

– New AMCC Manufacturers :

1) Converter supplier and address.

2) General type of converter (e.g., oxidation, redu ction, three

- way, etc.).

3) Number of each type of catalyst used per can (number of individual monoliths containing catalytic metals in each unit).

4) Substrate (e.g., monolithic, pelleted)

- give configuration construction technique (e.g., e xtruded, laid

- up, formed, etc.), composition, supplier and address, composition of active con

stituents in substrate (grams or troy ounces); for monolithic substrates, give number of cells per square inch of frontal area, design tolerances, and nominal cel l wall thickness (in mils); for pelleted substrates, specify pellet shape and dimensions, pellet bulk density, the use of more than one type of pellet (e.g., Rh, or Pt/Pd), any geometrical distribution of pellets, and (if this is controlled in production) the mean impregnation depth (in microns) of active materials with production

tolerances.

5) Washcoat

- give composition of active constituents, and total active material loading (grams or troy ounces) in washcoat.

6) Active material

- give composition of active constituents, loading of each active material including design tolerances, and total active material loading

, including design tolerances (grams or troy

- ounces).

7) Container

- specify dimensions, volume, materials used, techni que of containment and restraint, method of constructing container, canner (if different from catalyst supplier), and insulation and shielding (converter and/or vehicle).

8) Physical description

- dimensions (e.g., length, width, height, etc.), weig ht (lbs.),7

volume including design tolerances, active surface area (BET), and total active surface area including design tolerances.

Prototype Testing Description

-- New AMCC manufacturers :

1) Year, make, and model of vehicles tested.

2) Met hod of mileage accumulation.

3) Name and address of testing facility.

4) Summary of conversion efficiency test results.

5) Intended vehicle applications for each converter type tested.

Information on Test Bench

-- Reconditioners of C atalytic Converters :

1) Name and address of testing facility.

2) Description of facilities used for testing.

3) Intended vehicle applications for each converter type.

P ERIODIC R EPORTING : None

R ECORDKEEPING :

New AMCC Manufacturer Re cordkeeping :

The period of record retention for new AMCC manufacturers for warranty cards is 5 years.

Installer Recordkeeping :

There is no reporting. Installers are required to fill out the warranty c ard if new AMCCs are installed, or provide t he card to vehicle owner for completion of applicable sections and

submittal to the AMCC manufacturer. Installers must state the reason for replacement on the invoice, maintain the invoices for 6 months, tag the replaced catalytic converters

, and maintain the replaced catalytic converters on the premises for 15 days.

(ii) Respondent Activities

The information collection is to be implemented in ways consistent and compatible

with , to the maximum extent practicable, the existing reporting and r ecordkeeping practices of those who are to respond. 1

1 “N/A” indicates this was a one

- time cost that has already been absorbed under start

- up costs associated with the policy when it was promulgated or is otherwise not applicable. “*” indicates an item is a customary and usual business pr actice (CBP), or is partially CBP.8

N EW AMCC M ANUFACTURERS

New AMCC Manufacturers Provide Information Re garding Specifications

, Applications

, and Test Results for New Product Line

1 ) Review instructions; N/ A

2 ) Develop, acquire, ins tall and utilize technology and systems for the purpose of collecting, validating, and verifying information;

3 ) Develop, acquire, install and utilize technology and systems for the purpose of processi ng and maintaining information;

4 ) Develop, acquire, i nstall and utilize technology and systems for the purpose of disclo sing and providing information; N/ A

5 ) Adjust the existing ways to comply with any previously applicable instructions and requirements; N/A

6 ) Train personnel to be able to respond t o a c ollection of information; N/A

7 ) Search data sources;

8 ) Complete & review the collection of information;

9 ) Transmit or otherwise disclose the information.

This requirement is a one

- time burden that only applies to new product lines. It has already been accomplished for all existing product lines, many of which are likely to be usable for many years to come. ICR assumes each manufacturer develops and tests one new line every two year s

.

New AMCC Manufacturers Test Each New Product Line

This require ment is a one

- time burden that only applies to new product lines. In many

cases it is contracted out.

1) Review Instructions; N/A

2 ) Develop, acquire, install and utilize technology and systems for collecting, validating and verifying information;

3 ) Develop, acquire, install and utilize technology and systems for processing and maintaining information; 4) Develop, acquire, install and utilize technology and systems for disclosing and providing information; N/A 5) Adjust the existing ways to comply with any previously applicable instructions and requirements; N/A 6) Train personnel to be able to respond to a collection of information; N/A 7) Search data sources; 8) Complete & review collection of information; 9) Transmit or otherwise disclose t he information.

New AMCC Manufacturers Report on a Semi

- Annual Basis Regarding Manufacturing and

Submit and Maintain Warranty C ards :

These reports are no longer required on a routine basis; EPA reserves the right to require

submission of information u pon request.9

1) Review instructions; N/A 2) Develop, acquire, install and utilize technology and systems for collecting, validating and verifying information; 3) Develop, acquire, install and utilize technology and systems for processi ng and

maintaini ng information; * 4) Develop, acquire, install and utilize technology and systems for disclo sing and providing information; N/A 5) Adjust the existing ways to comply with any previously applicable instructions and requir ements; N/A 6) Train personnel to be able to respond to a collection of information; N/A 7) Search data sources; 8) Complete and review the collection of information; 9) Transmit or otherwise disclose information.

U SED C ATALYTIC C ONVERTER R ECONDITIONERS :

Used Catalytic Conv erter Reconditioners Submit Test Facility Information

This is a one

- time burden which has already been absorbed by on

- going facilities and we

know of no new facilities.

1) Review instructions; N/A 2) Develop, acquire, install and utilize technology and s ystems for collecting, validating and verifying information; 3) Develop, acquire, install and utilize technology and systems for processing and maintaining information; 4) Develop, acquire, install and utilize technology and systems for disclosing and p roviding information; 5) Adjust the existing ways to comply with any previously applicable instructions and requirements; N/A 6) Train personnel to be able to respond to a collection of information; N/A 7) Search data sources; 8) Complete and review th e collection of information; 9) Transmit or otherwise disclose the information.

Used Catalytic Converter Reconditioners Perform Efficiency Test on Each Used Converter

1) Review instructions; N/A 2) Develop, acquire, install and utilize tec hnology and systems for collecting, validating and verifying information;

3 ) Develop, acquire, install and utilize technology and systems for processing and maintaining information; 4) Develop, acquire, install and utilize technology and systems for discl osing and providing

informat ion; N/A 5) Adjust the existing ways to comply with any previously applicable instructions and requirements; N/A 6) Train personnel to be able to respond to a collection of information; N/A 7) Search data sources; 8) Comp lete and review the collection of information;10

9) Transmit or otherwise disclosing the information.

Used Catalytic Converter Reconditioners Semi

- Annual Report Regarding Distribution of

Products :

These reports are no longer required on a routine basis ; EPA reserves the right to require submission of information upon request.

1) Review instructions; N/A 2) Develop, acquire, install and utilize technology and systems for collecting, validating and verifying information; 3) Develop, acquire, install and utilize technology and systems for processing and maintaining information; 4) Develop, acquire, install and utilize technology and systems for disclosing and providing information; N/A 5) Adjust the existing ways to comply with any previously appl icable instructions and requirements; N/A

6 ) Train personnel to be able to respond to a collection of information; N/A 7) Search data sources; 8) Complete and review the collection of information; 9) Transmit or otherwise disclose the information.

AMCC I NSTALLERS

AMCC Installers Fill Out Warranty Card (For New AMCCs Only), State Reason for

R eplacement on Invoice and Place Tag on R emoved Converter

Most of the recordkeeping and maintenance is CBP. This ICR also makes an estimate for

startup burdens and costs for new businesses.

1) Review instructions; N/A 2) Develop, acquire, install and utilize technology and systems for collecting, validating and verifying information; * 3) Develop, acquire, install and utilize technology and systems f or processi ng and maintaining information; * 4) Develop, acquire, install and utilize technology and systems for disclosing and providing information; N/A 5) Adjust the existing ways to comply with any previously applicable instructions and requirements ; N/A 6) Train personnel to be able to respond to a collection of information; N/A 7) Search data sources; * 8) Complete and review the collection of information; * 9) Transmit or otherwise disclose the information.

5. THE INFORMATION COLLECTED

-- AGENCY ACTIVITIES, COLLECTION

METHODOLOGY AND INFORMATION MANAGEMENT

5(a) Agency Activities11

The information collection has been developed by an office within the EPA Office of Enforcement and Compliance Assurance (OECA) that h as planned and allocated resources for the efficient and effective management and use of the information to be collected, including the processing of the information in a manner which shall enhance, where appropriate, the utility of the information to agen cies and the public.

EPA engages in the following activities in regard to the information collection.

-- Review ing reports;

-- Conduct ing inspe ctions or audits as appropriate; and

-- Taking enforcement actions where app ropriate.

5(b) Collection Methodology and Management

New AMCC manufacturers collect sales data and warranty cards submitted to them by retail customers who have had converters installed, or directly from the installers themselves. This is a customary bu siness practice for many businesses. Until 1999, the new AMCC manufacturers reported semi

- annually to EPA manufacturing information (types of AMCCs and how many sold)

and submitted either a compute rized list summarizing AMCC installations or copies of the actual warranty cards, at their option. However, routine reporting is now only required regarding specific ations for new product lines. Warranty c ards must be kept for 5 years because that is the length of the warranty period.

Since warranties are no t required on reconditioned catalytic converters, the reconditioners were required, prior to 1999, to provide semi

- annual report regarding to whom they sold

reconditioned catalytic converters, how many were sold, and what types were so ld. The

reconditione rs must still retain this information, and provide it to EPA upon request, but routine reporting on reconditioned catalytic converters is no longer required.

No other recordkeeping or reporting i s necessary for new AMCC manufacturers unless they

create a new line of AMCCs , in which case data must be submitted regarding test results and appropriat e applications of the AMCCs . For used catalytic converter reconditioners, testing of each catalytic converter is necessary to determine if it is still functional . However, no specific record retention requirement exists regarding the results of individual tests, other than to include a certification with the converter that it passed testing. This short statement can be a pre

- printed

form.

If industry voices a n interest in electronic reporting, EPA will facilitate such data interchange, if practical. In the meantime, we would be willing to accept computer discs or other electronic information containing warranty information instead of hard copies of the inform ation if we request it . Since routine reporting of sales and warranty information is no longer required this does not appear to be a significant issue.

Installers have no reporting requirement. They merely fill out a warranty card for each

converter installed, and include on the customary business practice invoice a pre

- printed statement with a blank for why replacement was appropriate. The invoice, including the “ reason for replacement ” statement, must be kept for 6 months. In addition, the remove d converter is tagged12

for a 15 day period and maintained on the premises , so it can be directly related to the vehicle and

to the AMCC that replaced it.

5(c) Small Entity Flexibility

The information collection reduces to the extent practicable and approp riate the burden on persons who shall provide information to or for EPA , including with respect to small entities, as defined by the Regulatory Flexibility Act (5 U.S.C. § 601(6)), the use of such techniques as: (1) establishing differing compliance or re porting requirements or timetables that take into account the resources available to those who are to respond; (2) the clarification, consolidation, or simplification of compliance and reporting requirements; or (3) an exemption from coverage of the

collec tion of information, or any part thereof.

New aftermarket catalytic converter manufacturers are substantial businesses with gross revenues in the millions of dollars per year. The catalytic converter reconditioners tend to be

smaller businesses and the recordkeeping and reporting requirements are somewhat less; to wit: there are no warranty requirements and therefore no requirements to maintain warranty cards or report warranty information. More importantly, the policy allows small businesses to co mpete with the original equipment manufacturers in a market which was previously inaccessible to them, and which would not be legal but for this policy. Many installer s are small businesses and benefit significantly from this multimillion dollar industry. Their requirements are minimal (4

- 5 minutes per installation, at least some of which is not an EPA imposed burden since maintaining invoices is a customary business practice).

5(d) Collection Schedule

Sales reports were previously required to be subm itted to EPA by manufacturers and

reconditioners semi

- annually. This routine reporting is no longer required. No other regular reporting exists, but reports must be submitted by new AMCC manufacturers for new product lines. Installers do not report. Th eir recordkeeping occurs at the time of each installation transaction.

6. ESTIMATING THE BURDEN AND COST OF THE COLLECTION

Assumptions:

The estimated dollar cost for new AMCC manufacturers will be different than for used OE catalytic converter recondit ioners, since the policy is different for each group. The cost estimates for manufacturers and reconditioners, and for installers, are outlined below.

N EW C ONVERTER M ANUFACTURERS

1) The number of new AMCC manufac turers is approximately 8 (the same as in the previous ICR). The cost to new conve rter manufacturers consists of a ) the one

- time cost of submitting new product line specifications and testing information to EPA; and b ) the one

- time cost to test two converters for each product line using the spec ifications outlined in the policy. There is no longer a burden for submission of semi

- annual reports regarding manufacturing and sales.

2) Contractor cost: Based on estimates supplied by companies that provide the testing services, the testing cost for a typical manufa c turer is approximately $97,600 per product line. This13

estimate is identical to the estimate used in the previous ICR, but has been adjusted for inflation to

2008 dollars. This estimate includes the cost for personnel to conduct the testi ng, as well as the actual cost of the testing equipment and procedures. If the typical manufacturer markets approximately one new product line every two years, the total testing cost for a typical new

convert er manufacturer would be $97,600 for two years. Under the assumption that the prevailing

interest rate is 8 %, the annualized cost of the deve lopment testing would be $97,600 amortized over 24 months at 8% compounded monthly, or $52,970 per manufacturer per year. The number of new product lines is based on historical submissions and has not changed from the previous ICR

.

3 ) To estimate the labor to tabulate and report the information as required, we used

automotive sector labor rates from the Bureau of Labor Statistics website, which is found at

htt p://www.bls.gov/bls/auto.htm

. While no job category necessarily perfectly fits the technical work performed by aftermarket catalytic converter manufacturers, we selected the labor rate for

motor veh icle parts manufacturers. The hourly wage for automotive parts manufacturers as of October 2008 was $20.91 per hour. In reality, much of the burden can be performed by lower pay scale clerical staff. To account for benefits and overhead we have doubled this hourly wage, which

res ults in an hourly cost of $41. 82

.

4) The actual hour estimates per response (aside from the elimination of the semi

- annual

re ports as noted above) have remained the same since the last ICR. For new converter manufacturers, putting together an EPA report on specifications of a new product line takes about 2 hours. We have eliminated reporting on manufacturin g and sales information, which took about 0.5 hr.; and eliminated submission of warranty card information, which took about 1 hour to box and send to EPA. The maintaining of re cords, including warranty records, requires about 1 hour per

year.

R ECONDITIONERS OF U SED C ATALYTIC C ONVERTERS

1) The number of businesses reconditioning used catalytic converters (Reconditioners) is six, the same as in the previous ICR

.

2) The cost t o a R econditioner consists of the labor costs of testing each individual converter according to the test procedures outlined in the policy, the cost of setting up the bench testing equipment, and the cost of tabulating and reporting the information require d in the policy. These cost elements are treated separately below.

3 ) Two technicians are needed to test each used catalytic converter. The cost of a technician per hour is estimated to be somewhat less than for a new AMCC manufacturer, and

instead is e stimated to be about the same as an automobile mechanic. For the cost of an employee burden hour, however, we used the same costs as for new AMCC manufacturers. This gives an

ho urly cost per employee of $41.82 , including the cost of benefits and overhead

.

4 ) An average of 2.00 minutes are required for each test.

5) Capital Costs for R econditioners ’ equipment are based on a t est equipment cost of about $200 ,000, having a useful life of about 5 years. If this is amortized over 5 years the yearl y c ost comes to about $48,663 per R econditioner per year , including interest charges (8 % interest).

6) Record

- keeping costs for tabulating and reporting information to EPA are based on the14

same labor rate as above, even though some of this work m ay be done by lower pay scale clerical

workers.

7) The estimate of the number of reconditioned catalytic converters tested annually is 56,000 (roughly 2% of the number of new AMCCs sold each year). This estimate is unchanged since the previous ICR.

8 ) Reconditioners no longer have th e previous reporting burden of preparation of a semi

annual report (such repo rts previously took about 4 hours; less than 8 hours per year). The maintenance of these records takes about 1 hour per year.

AMCC I NSTALLE RS

1) There are approximately 30,000 automotive exhaust repair shops nationwide. It is assumed that these entities install the vast majority of AMCC s and it is further assumed that all of

these entities i nstall converters, but generally do not inclu de tire/ brake shops and other non

- exhaust repair facilities such as electrical diagnostic facilities. This is the same number of installers used in the previous ICR.

2) The estimate of the number of new AMCCs installed annually has been increased to 2.6 million to account for growth in the number of vehicles on the road (vehicle population has increased on average about 1.2% per year over the last 10 years according to the U.S. Department of Transportation, Federal Highway Administration , Highway Statist ics 2003 www.fhwa.dot.gov

. In the previous ICR, we estimated there were 2.5 million new AMCC s installed per year. These

estimates are in line with a 2001 report from the Manufacturers of Emission C ontrols Associat ion

who reported a total of 3,079,249 new AMCC s supplied to North America ( including catalytic converters supplied to Mexico).

3) Typically, it takes an exhaust repair technician 4

- 5 minutes per installation to handle all recordkeeping requirements (fil l out warranty card if applicable, fill in blank on invoice regarding reason for replacement, and tag the converter that was removed). This estimate is based on information from shop owners as well as EPA experience with the paperwork. In many cases, blan k warranty cards are simply provided to customers, further reducing burden times.

4) The cost of an employee per hour is estimated to be about the same as an automobile mechanic. For the cost of an employee burden hour, we used $15.11/hour, the most rec ent data

from the Bur eau of Labor Statistics for Automotive Repair and Maintenance for October 2008, and doubled that figure to reflect benefits and overhead. Thi s gives an hourly cost of $30.22

. This estimate is lower than for the previous ICR, but is b ased on current hourly wage data.

5 ) Using the above assumptions, each shop av erages 87 installations per year. On the average, the paperwork is assumed to take about 5 minutes per installation, or 7.2 hours per year. At $30.22 per hour, this comes to $ 218 per year per shop.

6(a) Estimates of Respondent Burden and Cost

N EW AMCC M ANUFACTURERS

1) Provide Specifications for New Product Lines15 One

- time burden for each new product line is 2 hours . Assume each manufacturer develops one new product line every two year s

.

Annual Hours per R espondent : 1.0

Annual Cost per Respondent : $ 42

Hours for 8 Respondents : 8 Cost for 8 Respondents : $335

2) Test Prototypes (Purchased Services):

One

- time burden for new product lines ( one new product line p er manufacturer every two years).

Hours per Re spondent (contracted out) 0

Annualized Cost per Respondent : $52,970

HRS FOR 8 RESPONDENTS: 0

C OST FOR 8 RESPONDENTS: $423,760

3) Submit Semi

- annual Reports of Manufacturing Data and Warranty Cards (reporting requirement disc ontinued; Recordkeeping exists):

Hours per Respondent : 1

C ost per Respondent : $41.82

Hours for 8 Respondents : 8

COST FOR 8 RESPONDENTS: $331.84

4 ) Annualized O & M Costs (for postage) : $6 * 8 parties = $48 for al l respondents.

U SED C ATALYTIC C ONVERTER R ECONDITIONERS

1) Submit Test Facility Information: This is a one

- time burden which has al ready been absorbed by current R econditioners. No new facilities are anticipated within the period of this ICR

.

2) Perf orm Efficiency Tests on Each Reconditioned Catalytic Converter :

Hours per Respondent : 623 (Represents 9345 converters tested per year per Respondent) Cost per Respondent : $26,054

Hours for 6 Respondents : 3,738 Cost for 6 Respondents : $156,323

3) S ubmit S emi

- annual Reports Regarding Distribution of Products (reporting requirement discontinued; Recordkeeping exists) :16 Hours per Respondent : 1 Cost per Respodent : $ 41.82

Hours for 6 Respondents : 6 Cost for 6 Respondents : $251

4) Amortized Capital Costs

Per Respondent: $48,663 Amortized Capital C ost for 6 Respondents : $291,978

5) Annualized O & M (for postage): None

E XHAUST S YSTEM R EPAIR F ACILITIES

1) Maintain Invoices and Removal Justification. Tag Converters

Hours per Respondent : 7 .22 Cost per Respondent : $218

Hours for 30,000 Respondents : 2 16,667 Cost for 30,000 Respondents : $6,54 7,667

2) Startup Costs:

Hours per Startup 5 Cost per Startup $151

Hours for 100 Startups 500 Cost for 100 Startups $15,100 Capital Costs (to purchase converter storage space): $250*100 = $25,000 for all respondents.

6(b) Summary of Respondent Costs

1) Total Yearly Costs for New AMCC Manufacture rs:

$52,976 per respondent, inclu ding contractor testing costs, O & M costs; $423,808 for all 8 respondents.

2) Total Yearly Costs for Converter Reconditioners:

$26,096 for yearly converter tests to check efficiency, Capital Costs of $48,663 = $74,759 per respondent, and $448,552 for all 6 respondents.

3) Total yearly costs for installers:

$218 for 1 respo ndent = $6,547,667 for a ll 30,000 installer facilities for labor17 5 hours ($1 51) plus $250 for filing space or $401 per party * 100 new parties per year = $40,11 0 total startup costs for new businesses . Total is $6,627,887.

4) Total Yearly Burden : $7,500,247 (including salaries); 220,935 hours for all respondents,

i ncluding testing and including 500 hours for 100 startups) . Annualized cost burden othe r than salaries: $740,782

.

SUMMARY OF RESPONDENTS ’ BURDENS AND COSTS BY CATEGORY:

I. New Aftermarket Catalytic Converter Manufacturers

A. Annual Burden Hours per Party: 3. (24 for all 8 respondents)

B. Annualized Capital Costs per Party: $0.00.

C. Annualized Operating Costs per party: $6.00 ($48 for all 8)

D. Annualized Startup Costs: $0.00 (no new entities entering the market).

E. Annual Purchased Services per Party (for Testing of Prototypes): $52,970. ($423,760 for all 8).

II. Used Aftermarket Catalytic Converter Manufacturers

A. Annual Burden Hours per Party: 624 (testing of catalytic conve rters to determine they are functional; the actual recordkeeping burden is minimal). (3,744 for all 6)

B. Annualized Capital Co sts per Party: $48,663. ($291,978 for all 6)

C. Annualized Operating Costs per Party: $0.

D. Annualized Startup Costs: None. There have been no new parties and none are expected in the next 3 years.

E. Annual Purchased Services per Party: $0.00.

III. Installers of AMCC s

A. Annual Burden Hours per Party: 7 .2

B. Annualized Capital Cos ts per Party: $0.00.

C. Annualized Operating Costs per party: $0.00.

D. Annual Purchased Services per Party: $0.00.

E. Annualized Startup Costs: Assum e 100 new installers per year; a ssume reviewing instructions and setting up recordke eping systems requires 5 hrs per party and th e purchase of file space of $250

. Total startup cost would be $151 plus $250 , for a total of $401 per party and18

$40,10 0 nationwide.

6(c) Estimated EPA Burden and Cost

The direct cost of personn el to process and analyze the information c ollected is estimated to be $770 or about 20 hours at the cost of a grade 12 employee. An estimated travel cost of $5,000 would be needed to monitor compliance with the policy, in addition to travel already used for retail level inspections for automobile emissions tampering generally. The total annual cost to the government is thus estimated to be $577 0.

6(d) Reasons for Change in Burden

Hourly burdens for new AMCC manufacturers and reconditioner s of used catalytic converters have remained unchanged. However, the cost

- burden for both have increased due to increases in testing equipment costs. Burdens for installers have been increased to reflect the

increase in sales volume. We have adjusted cos t figures for inflation.

6(e) Burden Statement

The public recordkeeping burden for this collection of information is estimated to average:

3 hours per new AMCC m anufacturer, on average, with $6 annual operational costs per year and a nnualized purchased se rvices costs per year of $52,970 ;

624 hours (including catalytic converter testing time) per used catalytic converter reconditioner, on average, with annualized c apital costs per year of $48,663 ; and

7 .2 hours p er respondent for AMCC installation facilities, with an additional 5 hours for the first year for startup f acilities and an additional $250 for startup capital costs. The overall average is 7.4 hours per response (220,935 total burden hours divided by
30,0 14 respondents).

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 purpose 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 EPA ’ s regulations are listed in 40 C.F.R. Part 9 and 48 C.F.R. Chapter 15.

To comment on EPA ’ 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. OECA

- 2008

- 0696 , which is available for public viewing at the Enforcement and Compliance Docket and Information Center in the EPA Docket Center (EPA/DC), EPA West, Room B102, 1301 Constitution Avenue, NW, Washington, DC. The EPA Doc ket Center Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone19

number for the Reading Room is (202) 566

- 1744, and the telephone number for the Enforcement and Compliance Docket and Inform ation Center is (202) 566

- 1752. An electronic version of the public docket is available through EPA Dockets (EDOCKET) at http://www.epa.gov/edocket. Use EDOCKET to submit or view public comments, access the index listing of the contents of the public

dock et, and to access those documents in the public docket that are available electronically. Once 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 Regulatory Affa irs, Office of Management and Budget, 725 17th Street, NW, Washington, DC 20503, Attention: Desk Office for EPA. Please include the

EPA Docket ID No. OECA

- 2005

- 0052 and OMB control number 2060

- 0135 in any correspondence.

PART B. COLLECTION OF INFORMATI ON EMPLOYING STATISTICAL

METHODS

This section is not applicable because statistical methods are not used in the data collection associated with the aftermarket catalytic converter policy.

APPENDIX A. Summary of Comments to First Federal Register Notice

No comments were received.

APPENDIX B. Citation for Information Requirements of the ICR

The information requirements of this ICR are enumerated in EPA ’ s proposed and interim enforcement policy published in the Federal Register on August 5, 198 6 (51 Fed. Reg. 28114). In this Federal Register notice EPA proposed to amend 40 C.F.R. Part 85 by adding a new Appendix IX, which would consist of this enforcement policy. There are no regulations applicable to this

information collection. The citatio ns listed below for the information require ments refer to this Federal Register notice.

Information Requirement Fed. Reg. Citation

New Converter Manufacturers

Collect and Transmit Converter specifications to EPA 51 FR 28119 Collect, file and maintain warranty information 51 FR 28117

Used Converter Reconditioners

Collect, file and maintain sales information and customer lists 51 FR 28118

Installers

Invoices, Warranties, Tag conv erters 51 FR 28816