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

EPA I CR 1723. 06
OMB Control Number: 2060

- 0320

September 2011 Compliance and Innovative Strategies Division Office of Transportation and Air Qualit y Office of Air and Radiation U.S. Environmental Protection Agency1

1. IDENTIFICATION OF THE INFORMATION COLLECT ION (a) TIT LE OF THE INFORMATION COLLECTION Report ing and Recordkeeping Requirements for Importation of Nonroad Engines and Recreational Vehicles (Renewal) , OMB #2060
- 0320, I CR #1723.0 6
. (b) SHORT CHARACTERIZATION (ABSTRACT) The Clean Air Act requires that motor vehicles and motor vehicle engines imported into the U.S. conform with applicable emission requirements. The Clean Air Act Amendments of 1990 extended these requirements to nonroad engines. This I nformation Collection Request (ICR) includes the importation of outboard spark ignition (SI) m arine engines; person al watercraft SI marine engines; non - propulsion compression ignition (CI ) engines used in marine applications ; small nonroad SIengines (less than 25 horsepower), used, for example, in som e lawn and garden equipment; and other nonroad CI engines such as construction equipment and farm tractors. Finally , this ICR was broadened to include the importation of other recently regulated categories of engines that will, like the above, all be listed on the same importation form, EPA Form 3520

- 2 1: locomotives and locomotive engines; large (greater than 50 horsepower) marine CI engines; nonroad recreational vehicles such as snowmobiles, all

- terrain vehicles (ATVs), and off

- highway motorcy cles; and large nonroad SI engines used in such things as fo rklifts and compressors. The Compliance and Innovative Strategies Division (C IS D) in the Office of Air and Radiation collects information and requires some recordkeeping to help ensure that nonconforming engines are brought into compliance with Fe deral emission requirements, unless eligible for exemption or exclusion. Also, the information is used by the U.S. Customs Service (Customs), State regulatory agencies, businesses, and individuals to determine whether engines are in compliance. In fo rmation collected includes identification of the importer, the entry date, the manufacturer, engine model and serial number, and an indication, by checking the appropriate box e s , of the regulatory category

of engine and of the relevant regulatory provision under which it is being imported. The information is retained in document form. The information is used to monitor compliance of imports with the law and regulations and to respond to inquiries from the public concerning the compliance status of specific imported engines. a) EPA Form 3520

- 21. This form is used by importers who are appl yi ng for entry of nonroad engines. Form 3520
- 21 has been routinel y used since ICR 1723.01 was approved in 1995. As such, we don't find it necessary to include the e xpiration date on the front page of the form. The OMB control number, EPA form number, and Paperwork Reduc t ion Act statement are appropriatel y display ed on the form. b) EPA Form 3520

- 8. This form is used by independent commercial importers (ICIs) t o request final admission (as opposed to initial declaration, which is covered by EPA Form 3520
- 1 and OMB 2060

- 0095 for on

- road imports) of a nonconforming engine that has been brought into compliance with Federal emission requirements. To date, nearly all such ICIs have been light

-2

duty vehicle importers under 40 CFR Part 85, Subpart P. There have also been a few on

- road motorcy cle IC I imports. The above

- named uses of Form 3520
- 8 are also covered b y OMB 2060
- 0095 (I CR 0010). R egulations for I CI imports of n onroad CI engines are also set forth at 40 CFR Part 89, Subpart G and contemplate requests for final admission of these engines
. However, b ecause this program is not y et active, onl y a placeholder burden is included here , so that this ICR covers all nonro ad imports
. 2. NEED FOR AND USE OF THE COLLECTION (a) NEED/AUTHORITY FOR THE COLLECTION Joint EPA and Customs regulations at 40 CFR 90.601 et seq . and 19 CFR 12.74 promulgated under the authorit y under the Clean Air Act (Sections 203, 208 and 213) give authority for the collection of information. The collection of this information helps ensure the compliance of imported nonroad engines with Federal emissions requirements, which helps meet the Agency goal of reducing air pollution. Wi thout this information, EPA could not confirm that engines being imported conform to the emission requirements of the Act, and, consequently , would not be able to allow importation of these engines. (b) PRACTI CAL UTILITY /USERS OF THE DATA The Compl iance and Innovative Strategies Division receives the information either directl y from the importers or indirectly from the importers through Customs. The information is used by Agency enforcement personnel to verify that all nonroad vehicles and engines subject to Federal emission requirements have been declared upon entry or that the category

of exclusion or exemption from emissions requirements has been identified in the declaration . The information is also used to identify

and prosecute violators of t he regulations and to monitor the program in achieving the objectives of the regulations. 3. NONDUPLICATION, CONSUL TAT IONS, AND OTHER COLLECTION CRI TERIA (a) NONDUPLICATION Because the information collected is specific to identify ing the appropria te regulated category and appropriate regulatory provisions for imported nonroad engines under the Clean Air Act, the information is highly

specific to EPA and not likely amenable to combining with other programs or agencies. Note that the form is currentl y al read y shared between EPA and Customs. (b) PUBLIC NOTICE EPA solicited public comment by means of a Federal Register Notice published on June 29, 2011, 7 6 FR 38151 . The draft IC R was also placed in the docket.3

( c) CONSULTATIONS The follo wing r epresentatives and manufacturers of imported nonroad engines were also consulted to further define the burden that will be involved in handling Form 3520

- 21
. Mark Perk General Motors, Electromotive Division 2021 Oxford St. London, Ontario N5V2Z7 Can ada 519
- 459
- 5953 Bruce Bradley

and Edward Mey er Nissan Forklift Corp., North America 240 North Prospect Street Marengo, Illinois 60152 815
- 568
- 0061 and 815

- 568
- 4779 Ed Klim International Snowmobile Manufacturers Association 1640 Haslett Rd., St. 170 Has lett, MI 48840 517
- 339
- 7788 (d) EFFECTS OF LESS FREQUENT COLLECTION Since reporting is done only at the time of entry , less frequent collection would seriously undermine the Agency 's ability to determine whether engines being imported meet applicab le emission requirements. Consequently , the Agency would not be able to allow entry of engines being imported. Therefore, less frequent collection is not feasible. Note that one form per shipment may

be used, provided attachments including all the infor mation required to describe each engine is included. (e) GENERAL GUIDELINES This I CR requires that in the event of nonroad CI ICIimports, the importer notify EPA when requesting final admission for vehicles (Form 3520

- 8) ; this m ight occasionally result in reporting more often than quarterl y. This requirement is necessary for EPA to inspect vehicles prior to release from the ICI. If EPA required quarterl y reports, either the ICI would have to hold engines and only

release them on a quarterly basis or E PA would likely not have the opportunity

to inspect engines imported b y the IC I. Additionally , EPA's regulations require that an y s uch nonroad CI IC Is retain records for eight ye ars from the date of final admission (40 CFR 86.607(a) ) . For comparison , the Clean Air Act requires that light duty vehicles meet Federal emission standards throughout their useful4

lives, which is defined by the Clean Air Act to be 10 y ears or 100,000 miles. The i mports regulations further specify that the useful life period start s from the date that the vehicle is delivered to the owner b y the I CI . Therefore, because of this requirement, compliance documentation must ordinarily be maintained six y ears from the date of entry
. (f) CONFIDENTIALITY Any information submitted to the Agency for which a claim of confidentiality is made will be safeguarded according to policies set forth in Title 40, Chapter 1, Part 2, Subpart B

- Confidentiality

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

Act of 1974 and OMB Circular A

- 130. (g) SENSITIVE QUEST IO NS No sensitive questions are asked. 4. THE RESPONDENTS AND THE INFORMATION RE QUESTED (a) RESPONDENTS/NAI CS CODES The Compliance and Innovative Strategies Division collects information from individual importers and both small and large companies who import, or import and manufacture nonroad engines and recreational vehicles. The NAICS codes for the respondents are as follows: Non
- road compression ignition engines 333618 Manufacturers of nonroad diesel engines 333111 Manufacturers of farm machinery and equipment 333112 Manufacturers of lawn and garden tractors (home) 333924 Manufacturers of industrial trucks 333120 Manufacturers of construction machinery 333131 Manufacturers of mining machinery and equipment 333132 Manufacturers of oil and gas field machinery and equipment 811112, 811198 Commercial importers of vehicles and vehicle components 33631 Manufacturers of motor vehicle gasoline engine and engine parts 336312 Manufacturers of gasoline engine and engine parts 33639 Manufacturers of other motor vehicle parts Small nonroad spark

- ig nition engines 333618 Other engine equipment manufacturing 336312 Gasoline engine and engine parts manufacturing 336999 Other transportation equipment manufacturing 336911 Motorcy cle, bicy cle and parts manufacturing5

Marine outboard and personal watercraft engines 333618 Manufacturers of marine spark ignition engines 333112 Manufacturers of recreational marine vessels 336611 Ship building and repair 336612 Boat building 336999 Other marine outboard and personal watercraft manufacturing 441222 Motorcy cle, boat, and other motor vehicle deal ers Locomotive engines 333618 Manufacturers of locomotives and locomotive engines 48211, 482111, 482112 Railroad owners and operators 488210 Engine repair and maintenance Large marine compression ignition engines 333618 Manufacturers of marine di esel engines 33661, 346611 Ship and boat building; ship building and repair 811310 Engine repair and maintenance 483 Water transportation, freight and passenger 336612 Boat building (watercraft not built in shipy ards and ty picall y of the t yp e suitable or intended for personal use) 441222 Motorcy cle, boat, and other motor vehicle dealers Recreational vehicles, including snowmobiles, all

- terrain vehicles, and certain high

- speed utility vehicles 336991 Motorcy cle manufacturers 336999 Snowmobile and al l

- terrain vehicle manufacturers 441222 Motorcy cle, boat, and other motor vehicle dealers
Large nonroad spark

- ig nition engines 333618 Manufacturers of new nonroad spark

- ignition engines 333111 Manufacturers of farm equipment 333112 Manufacturers of construction equipment 333924 Manufacturers of industrial trucks 811310 Engine repair and maintenance (b) INFORMATION REQUESTED6

(i) Data Items The data requested in reports include:

- engine identification number

- engine make

- engine model

- model y ear of the engine

- port of entry

- date of entry

- entry number

- importer name, address and telephone number

- broker name, address and telephone number (optional)

- owner name, address and telephone number (optional)

- identification of the ty

pe of vehicle or engine by regulatory

category

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

- justification for an exclusion or exemption, if ap plicable (ii) Respondent Activities To complete the collection, the respondent would:

- read form instructions

- collect data and complete forms

IN FORMAT ION REQUIREMENTS FOR IMPORTATION OF NONROAD CI ENGINES 40 CFR PART 89 SUBPART S G AND J IN FORMAT ION REQUIREMENTS CI TAT ION I. IC I requirements Reporting

- Certification application and 89.603(d) production changes

- Notification of transfer to another ICI 89.604(c)(4)

- Notification of acceptance of responsibility 89 .604(d)

- Application for final admission 89.605(a) (certified engine)7

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

- Attestation regarding maintenance 89.610 instructions, warranties and emission labeling

- Reply to notice of suspension or revocation 89.612(e)(3)(ii)

- Request for hearing 89.612(e)(3)(iii) Recordkeeping

- Vehicle disposition 89.607

- Owners or ultimate purchasers 89.608(b)

- Maintenance instructions, warranties and 89.610 emission label ing II. Requirements appl yi ng to all importers

- Notification of conditional admission 89.604(a)

- Request for prior approval 89.611 89.909 IN FORMAT ION REQUIREMENTS FOR IMPORTATION OF SMALL NONROAD SI ENGINES 40 CFR PART 90 SUBPARTS G AND J IN FORMAT ION REQUIREMENTS CI TAT ION

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

- Request for prior approval 90.612 90.909 IN FORMAT ION REQUIREMENTS FOR IMPORTATION OF MARI NE SIENGINES INC LUDING MARINE OUTBOARD AND PERSONAL WATERCRAF T ENGINES

40 CFR PART 91 SUBPARTS H AND K IN FORMAT ION REQUIREMENTS CI TAT ION8

- Notification of conditional admission 91.703 (b)

- Request for prior approval 91.704 91.1009 IN FORMAT ION REQUIREMENTS FOR IMPORTATION OF NON
- PROPUL SI ON CI ENGINES

USED IN MARINE APPLICATIONS 40 CFR PART 89 SUBPARTS G AND J IN FORMAT ION REQUIREMENTS CI TAT ION

- Notification of conditional admission 89.604(a)

- Request for prior approval 89.611 89.909
IN FORMAT ION REQUIREMENTS FOR IMPORTATION OF LOCOMOTIV ES OR LOCOMOTIVE ENGINES

40 CFR PART 92, SUBPARTS IAND J IN FORMAT ION REQUIREMENTS CI TAT ION

B Notification of conditional admission 92.803

B Request for prior approval 92.804 92.909 IN FORMAT ION REQUIREMENTS FOR LARGE MARINE CI ENGINES 40 CFR PART 9 4, SUBPARTS IAND J IN FORMAT ION REQUIREMENTS CI TAT ION

B Notification of conditional admission 94.803

B Request for prior approval 94.804 94.909 IN FORMAT ION REQUIREMENTS FOR IMPORTATION OF OTHER NONROAD ENGINES 40 CFR PART 1068 SUBPARTS C AND D IN FORMAT ION REQUIREMENTS CI TAT ION9

B Notification of conditional admission 1068.301

B Request for prior approval 1068.301
5. THE INFORMATION COLLECTED
-- AGENCY ACTIVITIES, COLLECTION METHODOLOGY, AND INFORMATION MANAGEMENT (a) AGENCY ACTIVI TI ES The Compliance and Innovative Strategies Division receives the information as required from Customs, individuals , and businesses. After receiving the information, EPA uses the information to determine whether the engines and vehicles meet EPA r equirements and retains the information in order to respond to public, State government, and Federal government inquir i es. (b) COLLECTION METHODOLOGY AND MANAGEMENT Both Customs and the Compliance and Innovative Strategies Division use the informat ion to determine if engines meet EPA requirements. The Compliance and Innovative Division retains information in document form in order to respond to public, State government, and Federal government inquires, which are handled b y C IS D staff. The documents are maintained by an EPA contractor. (c) SMALL ENT ITY FLEXIBILITY Small entities are required to submit the forms covered b y this ICR when applicable. There is no exemption for small entities. EPA does endeavor to provide small entities the maxim um feasible flexibility

in submitting the data. (d) COLLECTION SCHEDULE The information is not subject to a collection schedule, but is collected at the time of engine entry and , in the event of a non

- road IC I import, when the engine is read y for a pproval by

EPA of final admission. 6. ESTI MATING THE BURDEN AND COST OF THE COLLECTION 6(a) ESTIMAT ING RESPONDENT BURDEN I. IC I Recording, Recordkeeping and Testing Burden for Nonroad CI engines A. Reporting Burden Est. Est. # of Est. of (hrs/ instance ) instances /y r Burden (hrs)10

Form 3520
- 8 0. 81 1 0. 81 B. Recordkeeping Form 3520
- 8 & other required ICI records (see 4(b) 0. 5 1 0. 5 C. Testing : 28.0 1 28. 0 II. Reporting Burdens, Form 3520

- 21 Burden Est. Est. # of Est. of (hrs/form) forms/y r Burden (hrs) All categories 0. 50 1 2 ,000 6,000 TOTAL BURDEN = 6,02 9.31 hrs 6(b) ESTIMATING RESPONDENT COST LABOR COSTS: I. IC I Recording, Recordkeeping, and Testing for N onroad CI engines Estimated Labor Units Costs A. Reporting 1 form $ 35.13 @$ 43.37 per hour B. Recordkeeping 1 engine $ 10. 12 @$ 20.24 per hour C. Testing 1 engine $ 1,214.36 @ $ 43 .37 per hour II. Reporting Form 3520
- 21 Hours Cost All categories 6,000 $ 260,220 @ 43.37 per hour11

Total Labor Cost $ 261,479 CAPI TAL/STARTUP & O&M I. IC I Recording, Recordkeeping, and Testing for Nonroad CI engines Brokerage cost covering testing and application

- related

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

12,00 1 forms at $2 per form $24,00 2 Total Capital/Startup and O&M Costs $ 38 ,00 2 (i) Labor Costs Rates for engine ering managers, mechanical engineers, and secretaries (except legal, medical, and executive) are from the May 200 6 BLS National Occupational Employ ment and Wage Estimates ( http://www.bls.gov/oes/current/naics4_336100.htm , accessed June 1, 2011 ). With a 160 % overhead multiplier, these are $ 60.53 , $ 43.37 , and $ 20.24 , respectivel y. Test labor costs are $ 43.37 per hour (ii) Capital/Start

- up Costs Capital/start

- up costs are predominantly incurred by

I CI s during the required certification process, which is c overed by other ICR s . IC Is in the on

- road program t ypi cally obtain the necessary testing and certification work from a broker, who also provides testing services , or who obtains from a testing facility the test results necessary for the final importation form. The figure here is a placeholder for the possibility of extension of this program to nonroad CI engines, and is taken from the previous renewal of this I CR. (iii) Operations and Maintenance Costs This cost is estimated as a component of overall broker activities to import a vehicle or engine, and incorporates a $2 per form recordkeeping cost for broker form retention
. 6(c) ESTIMAT ING AGENCY BURDEN AND COST The imports program is administered by EPA ’ s C ompliance and Innovative Strategies Divisi on. Fort y percent of one Full Time Equivalent employee (FTE) , GS 12/3; twenty percent of one Senior Environmental Employ ment (SEE) Program employ ee 1 (about 400 hours); and a portion
1 The SEE Program is an employ ment program for older workers authorized by the12

of the work assignment under a government contract are allocated to i mports activities. Based on the 2011 Office of Personnel GS pay schedule for Detroit , EPA estimates a ye arl y $ 79,780 for the FTE, then multiplies the hourly rate by the standard government benefits multiplication factor of 1.6, for a cost of $ 51,060 plus $ 9,93 9 for the SEE, and $ 145,000 is estimated for the contractor. 6(d) ESTIMATING THE RESPONDENT UNIVERSE AND TOTAL BURDEN COSTS Recording, Recordkeeping, and Testing: 29.31 hrs Reporting Burdens, Form 3520

- 21: 6,000 hrs Total Hours 6,029.31
Recordi ng, Recordkeeping, and Testing: $1259.61 Reporting Burdens, Form 3520

- 21: $260,220 Total Cost $261,479 6(e) BOTTOM LINE BURDEN HOURS AND COST TABLES (i) Respondent Tally The information collection will involve an estimated 4,801 respondents at an estim ated labor cost of $261,479 and a capital/startup and O&M cost of $38,002. (ii) The Agency

Tall y The contractor estimate is based upon the work assignment rather than an estimate of hours. An estimated total Agency

cost of $205,999 per y ear is allocated to imports activities. An estimated 70% of these activities currentl y involve on

- road imports (I CR 0010; OMB 2060
- 0104); consequentl y $ 67,199 is the estimate for the agency cost for purposes of this I CR. (iii) Variations in the Annual Bottom L ine There are no var iations in the annual bottom line. 6( f ) REASONS FOR CHANGE IN BURDEN As with the prior renewal , this I CR bases the burdens on an estimate of the actual Form 3520
- 21s received by

EPA . The estimated 12,000 Form 21s received per ye ar is considered accurate within 10%. Environmental Programs Assistance Ac t, passed by Congress in 1984, and provides employ ment opportunities to senior citizens aged 55 and over.13

In addition, as with the prior renewal , a h ypothetical burden of 1 engine is included as a placeholder for t he burden associated with ICI importation of nonroad CI engines has increased slightly due to the slight increase in the cost of eng ine testing. 6( g ) BURDEN STATEMENT The annual public reporting and recordkeeping burden for this collection of information is estimated to average 30 minutes per response. Burden means the total time, effort, or financial resources expended b y pers ons 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 s ys tems for the purposes of collecting, validatin g, and verify ing information, processing and maintaining information, and disclosing and providing information; adjust the existing way s to compl y with any previously

applicable instructions and requirements; train personnel to be able to respond to a coll ection 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 informatio n unless it display s a currentl y valid OMB control number. The OMB control numbers for EP A ’ s regulations are listed in 40 CFR part 9 and 48 CFR chapter 15. To comment on the Agency 's need for this information, the accuracy of the provided burden estima tes, 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 Number EPA
- HQ
- OAR
- 2007
- 1138 , which is available for online viewing at www.regulations.gov , or in person viewing at the Air and Radiation Docket in the EPA Docket Center (EPA/DC), EPA West, Room 3334 , 1301 Constitution Avenue, NW, Washington, D.C. The EPA Docket Center Public Reading Ro om is open from 8:30 a.m. to 4:30 p.m., Monday through Friday , excluding legal holiday s. The telephone number for the Reading Room is (202) 566
- 1744, and the telephone number for the Air and Radiation Docket is (202) 566

- 1742
. An electronic version of th e 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 electronical ly
. When in the sy stem, select “search,” then key in the Docket ID Number identified above. Also, yo u can send comments to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, D.C. 20503, Att ention: Desk Officer for EPA. Please include the EPA Docket ID EPA
- HQ
- OAR
- 2007
- 1138 and OMB Control Number 2060
- 0320 in any correspondence.