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 INFORMATION COLLECTION REQUEST (ICR)

 United States Environmental Protection Agency (EPA)

 Part A of the Supporting Statement

 (Draft -November 2010)

1. IDENTIFICATION OF THE INFORMATION COLLECTION

1(a) Title: Regulation of Fuels and Fuel Additives: Gasoline Volatility; Reporting 

Requirements for Parties Which Produce or Import Gasoline Containing 

Ethanol, and Reporting Requirements for Parties Seeking a Testing 

Exemption (40 CFR 80.27)

EPA ICR Number 1367.09, OMB Control Number 2060-0178

1(b) 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 (Act) requires EPA to promulgate regulations 

prohibiting the sale or distribution of gasoline whose volatility, as measured by RVP, exceeds 

certain standards during the high ozone season. The Act and regulations at 40 C.F.R. 80.27 and 
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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 Act, the Agency promulgated a final rule in 1991. 

The reporting requirement in 40 C.F.R. 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 Act, 42 U.S.C. §§ 7414 

and 7542, and provides:

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

accompanies the 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 Act 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, 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.
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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.

3(c) Consultations

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.

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 
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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

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
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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 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 
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 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 

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 
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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 

parties may spend about ten seconds per transaction to stamp or otherwise enter the information 

on the PTDs. 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), 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 and 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
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hours. There is no burden for transferors and recipients because the transmittal of PTDs is a 

customary business practice.

6(b) Estimating Respondent 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 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(c) Estimating EPA Burden and Cost

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

Agency. The Agency would conduct inspections even without the requirement but the required 

information facilitates the investigation of possible violations. 

6(d) 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. 

6(e) Burden Statement

There are no EPA forms on which to place a statement.

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.