SUPPORTING STATEMENT

ENVIRONMENTAL PROTECTION AGENCY

Regulation of Fuels and Fuel Additives: Gasoline Volatility (40 CFR 80.27) (Renewal)

1. IDENTIFICATION OF THE INFORMATION COLLECTION

1(a) Title of the Information Collection 

Regulation of Fuels and Fuel Additives: Gasoline Volatility (40 CFR 80.27)

(Renewal) EPA ICR Number 1367.09, OMB Control Number 2060-0178

1(b) Short Characterization/Abstract

Gasoline volatility, as measured by Reid Vapor Pressure (RVP) in pounds per 

square inch (psi), is controlled in the spring and summer in order to minimize evaporative 

hydrocarbon emissions from motor vehicles. The standards, 7.8 psi or 9.0 psi, for each 

state (excluding Alaska and Hawaii) and the District of Columbia, are at 40 CFR 

80.27(a). The addition of ethanol to gasoline increases the RVP by about one psi. 

Gasoline that contains at least nine volume percent ethanol, and no more than 10 volume 

percent ethanol, is subject to a standard that is 1.0 psi greater. As an aid to compliance 

and enforcement, the regulation at 40 CFR 80.27 (d)(3) requires that the Product Transfer 

Document (PTD) which accompanies a shipment of gasoline containing ethanol shall 

contain a legible and conspicuous statement that the gasoline contains ethanol and the 

percentage concentration of ethanol. This is intended to deter the mixing within the 

distribution system, particularly in retail storage tanks, of gasoline which contains ethanol 

in the 9-10 percent range with gasoline that does not contain ethanol in the 9-10 percent 

range. Such mixing would likely result in a gasoline with an ethanol concentration 

outside the 9-10 percent range, but with an RVP above the applicable standard of 7.8 or 

9.0 psi. It is estimated that there are approximately 2,000 producers and importers 

(mostly blenders as opposed to refiners and importers) of gasoline blended with ethanol. 

These are the parties responsible for generating the PTDs. Parties wishing to conduct 

research or emissions certification on gasoline that does not meet the volatility standard 

are required to obtain a testing exemption in accordance with 40 CFR 80.27(e). The EPA 

receives approximately two requests per year for testing exemptions.

EPA has proposed additional PTD requirements for gasoline containing ethanol at 

75 FR 68044 (November 4, 2010). Those requirements will be addressed in a separate 

ICR.

2. NEED FOR AND USE OF THE COLLECTION

2(a) Need/Authority for the Collection

Section 211(h) of the Clean Air Act (CAA) requires EPA to promulgate 

regulations prohibiting the sale or distribution of gasoline whose volatility, as measured 
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by RVP, exceeds certain standards during the high ozone season. The CAA and 

regulations at 40 C.F.R. 80.27 and 80.28 permit gasoline containing 9-10 percent ethanol 

to have an RVP that is one psi greater than the standard that would otherwise apply. 

Normally, the gasoline distribution system treats gasoline as a fungible product. That is, 

gasolines from numerous sources are mixed together (also known as commingling) in 

tanks at terminals and retail outlets. Therefore, without the required statement on the 

PTD, gasoline containing ethanol in the 9-10 percent range could easily be commingled 

with gasoline containing ethanol outside that range. This could result in gasoline that 

exceeds the applicable 7.8 psi or 9.0 psi standard, and not have ethanol in the 9-10 

percent range to qualify for the one psi exemption allowed by the Act and regulations. 

Thus, it is imperative that gasoline marketers, shippers, and distributors know if a 

shipment of gasoline contains ethanol, and in what concentration. The required statement 

on the PTD of gasoline blended with ethanol will significantly aid industry compliance 

and EPA’s ability to enforce the volatility standards. 

 

Thus, the rule requires that the Customary Business Practice (CBP) PTD for a 

shipment of gasoline containing ethanol state that the gasoline contains ethanol and the 

percentage concentration of ethanol. The rule does not have a recordkeeping 

requirement. However, PTDs are usually retained in the normal course of business for 

five years. The PTD is generated by any party that produces or imports gasoline that 

contains ethanol.

As required by section 211(h) of the CAA, the Agency promulgated a final rule in 

1991. The reporting requirement in 40 CFR 80.27(d)(3) was promulgated under 

authority of section 211(h) of the Act, 42 U.S.C. § 7545(h) and sections 114 and 208 of 

the CAA, 42 U.S.C. §§ 7414 and 7542, and provides:

"Each invoice, loading ticket, bill of lading, delivery ticket and other document which 

accompanies a shipment of gasoline containing ethanol shall contain a legible and 

conspicuous statement that the gasoline being shipped contains ethanol and the 

percentage concentration of ethanol." 

These regulations provide for the enforcement of the standards for the maximum 

RVP that will be allowed during the high ozone portion of the year, extending from May

1 (suppliers) or June 1 (all other persons) through September 15. Regulatory control of 

volatility stems from a recognition of the major impact that increases in the RVP of 

gasoline have on the emissions of Volatile Organic Compounds (VOCs). Consequent to 

the excessive emission of VOCs is the formation of ozone in the ambient air, a major 

summertime health problem in many urban areas.

 The reporting (actually labeling) requirement is necessary because the CAA gave 

certain ethanol blends a one pound per square inch (psi) allowance above the otherwise 

applicable RVP standard. The records regarding the shipment of ethanol blends to a 

retailer or to any "midstream" distribution point will assist Agency enforcement officials, 
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when inspecting those shipments, in identifying those gasoline blends that qualify for the 

one psi allowance, and those parties who may be liable for violations if the blend is not in 

compliance. The records are also necessary to assist regulated parties in avoiding 

violations when handling multiple shipments of gasoline during the high ozone season, 

and can be used by parties in establishing a legal defense.

Parties wishing to conduct research or emissions certification on gasoline that 

does not meet the volatility standard may obtain a testing exemption by providing the 

information specified at 40 CFR 80.27(e) to EPA. Thus, if a test facility was inspected 

by EPA, and gasoline was found that did not meet the standard, and the facility had an 

exemption, there would not be a violation. 

 2(b) Practical Utility/Users of the Data

The collection of information is necessary for the proper performance of the 

functions of the Agency and has practical utility. The information contained in the PTDs 

for gasoline blended with ethanol is used to identify those gasoline blends that may 

qualify for the one psi allowance, as provided by the Act and by the rule. The required 

record also helps prevent the commingling of gasoline containing the required amount of 

ethanol necessary to be eligible for the one psi waiver with gasoline that does not qualify. 

Such commingling would usually result in a violation. The testing exemption provides 

flexibility for research or emissions certification.

Agency enforcement officers need this information to assist in identifying 

violations and violating parties. There is no recordkeeping requirement under this rule. 

Industry entities, including blenders of ethanol and gasoline, and distributors of gasoline 

containing ethanol, as well as retailers (who ultimately receive the gasoline but have no 

recordkeeping requirements under the rule) need the information in order to prevent 

violations that can occur from commingling multiple gasoline shipments during the high 

ozone season.

3. NONDUPLICATION, CONSULTATIONS, AND OTHER COLLECTION CRITERIA

3(a) Nonduplication

The information collection is not duplicative. The PTDs are the only records 

available to recipients of gasoline that document that ethanol has been blended into the 

gasoline. The reporting requirement for a testing exemption is the only practical 

approach. 

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

In compliance with the Paperwork Reduction Act, a notice was published in the 

Federal Register (75 FR 74044, November 30, 2010). No comments were received. 
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3(c) Consultations

Based on discussions with industry representatives, the general consensus is that 

the burden is very small. The information is generally computer-generated, pre-printed, 

or hand stamped on the PTDs. The rule does not require that the PTDs be retained. Only 

about two requests for testing exemptions are received annually. Discussions were with:

Jeffrey Behrer Exxon Mobil Pipeline Co. 540-297-3444

Bruce Heine Magellan Midstream Partners 918-645-8989

Marilyn Herman Herman and Associates 202-362-9520

James Holland Kinder Morgan 713-369-9428

Bob Ricciuti Sunoco Logistics 215-977-3828

3(d) Effects of Less Frequent Collection

This labeling activity is the minimum necessary to alert downstream 

distributors/marketers that a shipment of gasoline contains ethanol. The labeling 

requirement applies only to those producing or importing gasoline blended with ethanol. 

The Agency allows maximum flexibility in the form of the labeling. Neither record 

maintenance nor reporting to the Agency is required. No new documents are required 

since PTDs are routinely used in the gasoline distribution network. Testing exemptions 

are requested only as necessary.

3(e) General Guidelines 

The collection is in compliance with OMB guidelines. To the extent that some 

affected companies may be relatively small businesses, their informational requirements 

do not change since the requirement is already the minimal possible in order to give other 

businesses and EPA information that is necessary for compliance. 

3(f) Confidentiality 

Information claimed as confidential is handled in accordance with EPA Freedom 

of Information Act regulations at 40 CFR 2.

3(g) Sensitive Questions

 There are no sensitive questions. 

4. THE RESPONDENTS AND THE INFORMATION REQUESTED

 4(a) Respondents/SIC/NAICS Codes
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The respondents are related to the following major group Standard Industrialization 

Classification (SIC) codes:

2869 - Denatured Alcohol Manufacturing 

2911 - Petroleum Refineries

4212 - Gasoline Distributors

5171 - Gasoline Bulk Stations and Terminals

5172 - Gasoline Merchant Wholesalers (except bulk stations, terminals)

5541 - Retailers/Wholesale Purchaser-consumers

The respondents are related to the following major group NAICS codes:

324110 - Petroleum Refineries

325193 - Denatured Alcohol Manufacturing

424710 - Gasoline Bulk Stations and Terminals

424720 - Gasoline Merchant Wholesalers (except bulk stations, terminals)

4(b) Information Requested

(i) Data Items, Including Recordkeeping Requirements

This ICR covers the reporting/labeling requirement at 40 CFR 80.27(d)(3) 

for the PTDs for shipments of gasoline containing ethanol. Ethanol is generally

splash-blended into a gasoline tanker truck at a terminal truck rack at ten volume 

percent. The blender creates a statement on the PTD that the product contains ten 

percent ethanol. The same is required for a refiner who produces gasoline 

blended with ethanol at a refinery and an importer of gasoline blended with 

ethanol. Each distributor/transferor transfers this PTD on to the next transferor 

and ultimately to the retail level. Many refiners/blenders/importers already 

included this information on the PTDs prior to the EPA regulatory requirement 

(also, some states already required this information), and for them this 

requirement represented no new burden. Even where it did represent a new 

burden, in just about all cases the information is now encoded automatically by

computer or otherwise routinely stamped or entered on the PTD, resulting in an 

extremely small reporting burden. There is no burden for transferors, as they

already had to transfer a PTD with each shipment of gasoline as a Customary
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Business Practice (CBP). This rule has no recordkeeping requirement. Parties 

needing a testing exemption must submit the information specified at 40 CFR 

80.27(e).

(ii) Respondent Activities

The following are required:

Read and comprehend the regulations.

Train personnel to meet the requirements.

Develop the information for the PTD and/or testing exemption.

Gather and organize the information.

Review the information, perform quality assurance, and take corrective action, if 

necessary, to meet the regulatory requirements.

Enter the information onto the PTD or submit the request for a testing exemption 

to EPA.

5. THE INFORMATION COLLECTED--AGENCY ACTIVITIES, COLLECTION 

 METHODOLOGY AND INFORMATION MANAGEMENT

5(a) Agency Activities

The following are required:

Develop a thorough understanding of the regulatory requirements.

Convey the requirements and respond to inquiries in a clear manner.

Provide access to the regulations and guidance documents.

Timely process requests for testing exemptions.

Monitor compliance with the PTD requirement.

5(b) Collection Methodology and Management

The information collection, to the maximum extent practicable, uses appropriate 

information technology to reduce burden and improve data quality, agency efficiency and 

responsiveness to the public. Ethanol blender/distributors generally use computer-printed 
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language stating that the product contains ethanol and the amount (usually10 percent). 

This information is printed on PTDs, and in many cases the information itself was 

already printed prior to the rule. EPA also allows the use of coded statements to reduce 

the space the statement requires on the PTD. EPA may examine these records during 

investigations regarding gasoline exceeding the applicable RVP standard. Requests for a 

testing exemption are routinely reviewed and granted by EPA.

 

5(c) Small Entity Flexibility

The information collection reduces to the extent practicable and appropriate the 

burden on persons who shall provide information to or for the Agency, 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 reporting 

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 collection of 

information, or any part thereof. 

The approach of this information collection holds burdens to the irreducible 

minimum consistent with obtaining the required compliance levels. The labeling 

requirement applies only to those entities that produce or import gasoline blended with 

ethanol. It enables those parties, as well as retail level entities, to comply with the law. 

However, retail entities have no requirement to make or maintain records. Therefore, the 

smallest entities have no burden under this collection and for those small blenders and 

importers who do have a burden, the burden is minimal. The information required is not 

in any prescribed format, allowing for maximum flexibility in how to print the 

information, including the use of short codes, and does not necessitate any new records. 

Therefore, no further flexibility is needed. 

5(d) Collection Schedule

 There is no reporting requirement to EPA and there is no required maintenance period. 

There is no collection schedule; the statement is added to the CBP transfer document 

when the blend is produced or imported. 

6. ESTIMATING THE BURDEN AND COST OF THE COLLECTION

It is estimated that there are 2,000 producers and importers of gasoline blended with 

ethanol. The vast majority is blended at terminals. Some ethanol is blended at a refinery or 

contained in imported gasoline 

 Based on information received from respondents and from EPA experience, for most 

respondents the required information is automatically computer-generated or preprinted on the 

PTDs. This means the reporting requirement is almost immeasurable for these parties. Other 
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parties may spend about ten seconds per transaction to stamp or otherwise enter the information 

on the PTDs. (Respondent estimates were: Exxon – less than 1 second, Kinder Morgan – one 

second, Magellan Pipeline – 1 second for automated PTDs, 10 seconds for hand-stamped PTDs, 

Sunoco – less than 1 second.) The average for all respondents is estimated to be about one 

second per transaction. There is no recordkeeping requirement. It is estimated to take four hours 

to prepare a request for a testing exemption. 

 

Based on data from the U.S. Department of Labor, Bureau of Labor Statistics, (2008 data 

adjusted to 2011), EPA estimates that the hourly cost, including benefits and other employee 

costs, for this industry and for the period of this ICR, to be about $110 per hour for a typical 

labor mix. 

Almost all gasoline containing ethanol will be shipped by truck. Assume 95 percent of 

all gasoline contains ethanol. If 95 percent of the 140 billion gallons of gasoline that is 

consumed annually nationwide contains ethanol, this comes to 133 billion gallons of gasoline. If 

the average truck shipment is 3,000 gallons of gasoline, then about 44 million 

truckloads/shipments of gasoline with ethanol are produced/imported annually. Thus 44 million 

PTDs will receive the required statement on ethanol content annually.

6(a) Estimating Respondent Burden 

For 44 million PTDs (responses), at an average burden of 1 second per PTD, the 

annual burden is 12,222 hours, or about six hours for each of the estimated 2,000 

producers and importers. There is an additional hour of labor for each of the estimated 

100 new producers or importers annually to implement the requirement, for a net annual 

burden for producers and importers of 12,222+100= 12,322 hours. The two requests for 

testing exemptions, at 4 hours each, add 8 hours annually, for an annual total of 

44,000,002 responses and 12,322+8= 12,330 hours. There is no burden for transferors 

and recipients because the transmittal of PTDs is a customary business practice.

6(b) Estimating Respondent Costs

(i) Estimating Labor Costs

In discussions with industry, four labor categories were identified as having involvement: 

managerial, legal, professional/technical (prof/tech) and clerical. According to the 

Bureau of Labor Statistics, May 2008 National Industry-Specific Occupational 

Employment and Wage Estimates, mean wages were:

Wages

Managerial $60.42 (+112%)

Legal $84.56 (+112%)

Prof/Tech $60.05 (+112%)

Clerical $17.34 (+112%)
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Doubling for company overhead and employing a 2% annual inflation factor to bring the 

rates to the year 2011, and, for convenience, rounding to the nearest dollar, gives the 

following rates that will be used for this ICR:

Total Employer Cost

Managerial $128

Legal $179

Prof/Tech $127

Clerical $ 36

The labor mix for each task is assumed to be about 0.05 hour managerial, 0.05 hour legal, 

0.7 hour professional/technical, and 0.2 hour clerical. This gives an average labor cost of 

about $110 per hour, which will be used in this ICR.

(ii) Estimating Capital and Operations and Maintenance Costs

There are no capital costs as the PTD is a CBP. There are operations and maintenance 

costs for copying and postage for the two exemption requests annually, and are estimated 

at $10 each for a total of $20. 

(iii) Capital/Start-up Operating and Maintenance (O/M) Costs 

There are no O&M costs.

(iv) Annualizing Capital Costs

There are no annualized capital costs.

6(c) Estimating Agency Burden and Cost

The labeling activity that is the subject of this ICR imposes no burden or costs on EPA. 

EPA would conduct inspections even without the requirement, but the required 

information on the PTD facilitates the investigation of possible violations. It is estimated 

that the Agency will spend 2 hours evaluating a request for a testing exemption at a cost 

of $80 per hour. This is based on an annual cost to the agency for salary and benefits of 

$166,000 for an employee of the appropriate level (GS-13) and divided by 2080 hours 

per annum.

6(d) Estimating the Respondent Universe and Total Burden and Costs

For producers and importers of gasoline containing ethanol, 12,222 hours at $110

per hour gives a total of $1,344,420, or about $672 per respondent (2,000 respondents) 

annually to generate the required statement on PTDs. For the estimated 100 new 
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producers or importers each year, there is an additional hour of labor for each, $110 per 

respondent, to implement the requirement, for a total of $11,000. Thus, the total annual 

cost for producers and importers is $1,344,420+$11,000=$1,355,420. For parties 

wishing a testing exemption, 8 hours at $110 per hour gives a total of $880, or $440 per 

respondent (2 respondents). There are no costs for transferors and recipients.

There are no Purchased Services Costs. There are no Annualized Startup Costs. 

There are no Annualized Capital Costs. Thus, the only non-labor costs are Operating and 

Maintenance (O&M) costs are for copying and postage for the two exemption requests 

annually, and are estimated at $10 each for a total of $20. 

 6(e) Bottom Line Burden Hours and Cost Tables

(i) Respondent Tally

PTD Language 12,222 hours $1,344,420

New Programming 100 $ 11,000

Testing Exemptions 8 $ 880

Mailing of Exemptions 0 $ 20

(ii) Agency Tally

Review of Testing Exemption Requests 4 hours $320

(iii) Variations in the Annual Bottom Line

None.

6(f) Reasons for Change of Burden

The use of ethanol in gasoline has increased since the previous ICR from 60 

percent of the market to 95 percent of the market. Also, the average shipment size has 

been reevaluated from 8,500 gallons to 3,000 gallons. Thus, the estimated annual 

number of PTDs that will contain the required language has increased from 10 million in 

the previous ICR to 44 million. Despite the increase in the number of responses, the total 

requested respondent burden has decreased by 1,667 hours because of an increase in 

computer-generated product transfer documents. 

6(g) Burden Statement

The annual public reporting and recordkeeping burden for this collection of 

information is estimated to average less than one minute per response. Burden means the 
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total time, effort, or financial resources expended by persons to generate, maintain, retain, 

or disclose or provide information to or for a Federal agency. This includes the time 

needed to review instructions; develop, acquire, install, and utilize technology and 

systems for the purposes of collecting, validating, and verifying information, processing 

and maintaining information, and disclosing and providing information; adjust the 

existing ways to comply with any previously applicable instructions and requirements; 

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

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

information. An agency may not conduct or sponsor, and a person is not required to 

respond to, a collection of information unless it displays a currently valid OMB control 

number. The OMB control numbers for EPA's regulations are listed in 40 CFR part 9 

and 48 CFR chapter 15. 

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 ICR under Docket ID Number EPA-HQ-OAR-2007-0478, which is 

available for online viewing at www.regulations.gov, or in person viewing at the Office 

of Air and Radiation Docket in the EPA Docket Center (EPA/DC), EPA West, Room 

3334, 1301 Constitution Avenue, NW, Washington, D.C. The EPA Docket Center Public 

Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding 

legal holidays. The telephone number for the Reading Room is (202) 566-1744, and the 

telephone number for the Regulation of Fuels and Fuel Additives: Gasoline Volatility

Docket is (202) 566-1742. An electronic version of the public docket is available at 

www.regulations.gov. This site can be used to submit or view public comments, access 

the index listing of the contents of the public docket, and to access those documents in 

the public docket that are available electronically. When in the system, select “search,” 

then key in the Docket ID Number identified above. Also, you can send comments to the 

Office of Information and Regulatory Affairs, Office of Management and Budget, 725 

17th Street, NW, Washington, D.C. 20503, Attention: Desk Officer for EPA. Please 

include the EPA Docket ID Number EPA-HQ-OAR-2007-0478 and OMB Control 

Number 2060-0178 in any correspondence.

B. COLLECTION OF INFORMATION EMPLOYING STATISTICAL METHODS

This section is not applicable because statistical methods are not used in this data 

collection associated with the Gasoline Volatility Rule.