Information Collection Request Renewal

Supporting Statement

Nonconformance Penalties for Heavy-Duty Engines

and Heavy-Duty Vehicles, Including Light-Duty Trucks

EPA Number 1285.08

OMB No. 2060-0132

40 CFR Part 86, Subpart L

Certification & Compliance Division

Office of Transportation and Air Quality

Office of Air and Radiation

U.S. Environmental Protection Agency
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1. Identification of the Information Collection

1(a) Title and Number of the Information Collection

Nonconformance Penalties for Heavy-Duty Engines and Heavy-Duty Vehicles, Including 

Light-Duty Trucks; EPA ICR Number 1285.08, OMB Control Number 2060-0132.

1(b) Short Characterization

Nonconformance penalties (NCP) provisions allow manufacturers to introduce into 

commerce heavy-duty engines (HDEs) or heavy-duty vehicles (HDVs) and/or light-duty trucks

that fail to conform to certain emission standards upon payment of a monetary penalty. The 

information collected from manufacturers electing to pay an NCP includes a description of their 

product(s) and test data to verify compliance. 

This information is collected by the Diesel Engine Compliance Center (DECC) in the 

Compliance Division (CD), Office of Transportation and Air Quality, Office of Air and 

Radiation (OAR), of the U.S. Environmental Protection Agency. DECC uses this information to 

ensure that manufacturers are in compliance with Clean Air Act (Act) regulations and are paying 

the appropriate penalties. Besides DECC, this information could be used by the Office of 

Enforcement and Compliance Assurance and the Department of Justice for enforcement 

purposes. Non Confidential Business Information (CBI) information may be disclosed in a 

public database and over the Internet. Public data is used by trade associations, environmental 

groups, and the public. The information is usually submitted in an electronic format, and it is 

stored in HDNEG’s certification database.

Only one engine manufacturer has elected to use the NCP provisions in the last several 

years. EPA expects that only one manufacturer will respond to this collection with an 

approximate annual cost of $81,163. 

2. Need for and Use of the Collection

2(a) Need/Authority for the Collection

Under Title II of the Clean Air Act, (42 USC 7521 et seq.), EPA is charged with issuing 

certificates of conformity for those vehicles and engines that comply with applicable emission 

standards. Such certificates must be issued before vehicles or engines are legally introduced into 

commerce. To ensure compliance with these statutes, EPA reviews product information and 

manufacturers' test results; EPA also tests some vehicles and engines to confirm manufacturers'

results.

EPA's emission certification programs are statutorily mandated; the Agency does not 

have discretion to cease these functions. Under Section 206(g)(1) of the Act as amended (42 

USC 7525):
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In the case of any class or category of heavy-duty vehicles or engines to which a standard promulgated 

under section 202(a) of this Act applies, except as provided in paragraph (2), a certificate of conformity 

shall be issued under subsection (a) and shall not be suspended or revoked under subsection (b) for such 

vehicle or engines manufactured by a manufacturer notwithstanding the failure of such vehicles or engines 

to meet such standard if such manufacturer pays a nonconformance penalty as provided under regulations 

promulgated by the Administrator after notice and opportunity for public hearing.

2(b) Practical Utility/Users of the Data

EPA uses the data to ensure manufacturers are complying with the regulations and that 

appropriate nonconformance penalties are being paid by the participants.

The information will be received and used by DECC, CD, OTAQ, OAR. Nonconfidential portions of the information submitted to HDNEG are available to and used by

manufacturers, engine users, environmental groups, members of the public and state and local 

government organizations.

3. Nonduplication, Consultations and Other Collection Criteria

3(a) Nonduplication

The information requested under this ICR is required by statute. Because of its 

specialized (and sometimes confidential) nature, and the fact that it must be submitted to EPA 

prior to the start of production, the information collected is not available from any other source.

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

An announcement of the public comment period for this ICR renewal was published in 

the Federal Register (77 FR 18802) on March 28, 2012. This document may be accessed 

through the Federal Register's website at http://www.gpoaccess.gov/fr/index.html. 

No comments were received in response to this ICR renewal. 

3(c) Consultations

Under the existing ICR, only one manufacturer has elected to participate in the NCP 

program. Given this low level of activity, EPA did not attempt to contact potential respondents, 

and chose instead to use the burden estimates provided by the respondents under the existing 

ICR. 

3(d) Effects of Less Frequent Collection
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The CAA states that emission certification must be done on a yearly basis (CAA 

206(a)(1)), coinciding with the industry's "model year." Major product changes typically occur 

at the start of a model year. For these reasons, manufacturers declare their intent to use NCPs 

once a year, at the time of certification. A collection frequency of less than a model year is not 

possible. However, EPA only requires the collection of Production Compliance Audit (PCA) 

information when a manufacturer elects to pay a nonconformance penalty and conduct a PCA. 

However, the NCP payment and associated report be submitted quarterly. This frequency

reflects the fact that engine manufacturing companies update their internal production volume 

reports every quarter. Thus quarterly reports and payments allow manufacturers to pay only 

what is needed, instead of making annual projections that may not reflect true production levels. 

This quarterly reporting is consistent with other EPA programs, such as Production-Line Testing, 

covered under other ICRs.

3(e) General Guidelines

Manufacturers are required to establish, maintain, and retain specific records under the 

regulation pertaining to all equipment used to test engines or vehicles, individual test results, 

information and test data, and a complete record of all emission tests performed. Required 

records shall be maintained by the manufacturer for a period of six years. The six-year 

recordkeeping requirement stems from the CAA mandate that manufacturers recall engines 

failing to meet emission standards throughout their useful lives. Records may be retained as hard 

copy or reduced to microfilm, automated data processing (ADP) film, etc., depending on the 

manufacturer's record retention procedure, provided that in every case all the information 

contained in the hard copy is retained.

Manufacturers are required to submit confidential business information such as sales data 

and certain sensitive technical descriptions (please see section 4(b)(i) for reference). This

information is kept confidential in accordance with the Freedom of Information Act, EPA 

regulations at 40 CFR Part 2, and class determinations issued by EPA's Office of General 

Counsel. Also, nonproprietary information submitted by manufacturers is held as confidential 

until the specific vehicle or engine to which it pertains is available for purchase.

No other general guideline is exceeded by this information collection.

3(f) Confidentiality

Manufacturers are allowed to assert a claim of confidentiality over information provided 

to EPA. Confidentiality is provided in accordance with the Freedom of Information Act and 

EPA regulations at 40 CFR Part 2. For further detail, refer to section 3(e).

3(g) Sensitive Questions
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No sensitive questions are asked in this information collection.

4. Respondents and Information Requested

4(a) Respondents/NAICS Codes

The respondents are manufacturers or importers of large on-highway heavy duty engines. 

The following North American Industry Classification System (NAICS) codes are associated 

with this information collection:

333924 Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing

336112 Light Truck and Utility Vehicle Manufacturing

336120 Heavy Duty Truck Manufacturing

336312 Gasoline Engine and Engine Parts Manufacturing

336322 Other Motor Vehicle Electrical and Electronic Equipment Manufacturing

4(b) Information Requested

EPA requires a manufacturer that elects to pay an NCP to conduct a Production 

Compliance Audit (PCA) on the engines or vehicles the manufacturer selected for the program. 

Selection of engines or vehicles for PCA testing must be initiated no later than five days after the 

start of assembly line production of the specified engine family. The manufacturer must then 

pay the NCP, which is calculated according to formula specified in the regulations. The formula 

takes into account current emission standards and how much the engine family exceeds the 

standards as indicated in the PCA testing. The manufacturer must agree to recall any engines or 

vehicles introduced into commerce if the compliance level of the engine or vehicle exceeds the 

upper limit as determined by the PCA.

The information collected from manufacturer electing to pay an NCP includes a 

description of their product(s) and test data to verify compliance. This information is organized 

by "engine family" groups expected to have similar emission characteristics. Manufacturers 

must also retain needed records.

The burden for a given engine family is reduced after the model's first production year, 

because data and information from previous years can be "carried over" when no significant 

changes have occurred. For instance, an engine family certified in model year 2012 can be 

certified in the 2013 model year by "carry over" of data and paperwork from the 2012 model 

year if no significant changes have occurred to the engine family between model years. 

Allowing manufacturers to carry over data and paperwork reduces testing costs, as well as eases 

significantly the burden of putting together the application. Carry over reduces the need to 

conduct a PCA for each engine family on an annual basis as PCA data may be carried over to 

subsequent model years when appropriate.
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(i) Data Items

The data items in Tables A through C below are required under this information 

collection. Each manufacturer is required to maintain records containing the information items 

in Tables A and B and submit the information items listed in Table C.

Table A

General Information Required for NCPs

Information Item On-Highway

Description of Test Equipment 86. 1108(a)(1)

Date and location of each test 86. 1108(a)(2)(i)

Service mileage/hour accumulation 86. 1108(a)(2)(ii)

Personnel contacts 86. 1108(a)(2)(iii)

Repair descriptions and records 86. 1108(a)(2)(iv)

Date engine or vehicle shipped and received 86. 1108(a)(2)(v)

Emission test records 86. 1108(a)(2)(vi)

Description of extraordinary events during PCA 86. 1108(a)(2)(vii)

Records Retention (6 years) 86. 1108(b)

Table B

Production Compliance Auditing

Information Item On-Highway

Test engine sample selection 86. 1110-87

Test procedure for PCA testing 86. 1111-87(a)(1)

Service Accumulation 86. 1111-87(c)

Shipment to test facility 86. 1111-87(e)

Determination of Compliance Level 86. 1112-87(a)
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Table C

Calculation and Payment of Penalty

Information Item On-Highway

NCP Calculation 89.1113-87(a)

Quarterly Penalty Payment 86.1113-87(g)(1)

Quarterly Information Reporting 86.1113-87(g)(1)

EPA is currently working on expanding the pollutants and years manufacturers can use 

NCPs for. The information collected and burden will remain the same.

(ii) Respondent Activities

The type of activities a manufacturer would conduct to participate in the nonconformance 

penalty program for a specified engine family are as follows:

● Review the regulations

● Test engines for production compliance audit

● Gather emission data

● Conduct Performance Compliance Audit (PCA)

● Submit the PCA data/report

● Retain and maintain records

● Submit quarterly production reports and NCP payments

5. The Information Collected -- Agency Activities, Collection Methodology, and 

Information Management

5(a) Agency Activities

A significant portion of EPA's NCP activity is spent reviewing the application, verifying 

that the correct engines have been selected and appropriately tested, determining the applicable 

compliance level and corresponding nonconformance penalty, ensuring applicable fees are paid, 

storing the data and answering manufacturers' questions. A part of the NCP process involves 

determining if "carry-over" of data from a previous model year is appropriate or if new testing 

will be required. The agency also analyzes requests for confidentiality and provides appropriate 

protection.

5(b) Collection Methodology and Management

EPA currently makes extensive use of computers in gathering and evaluating information 

from vehicle and engine manufacturers. Today, most of the information is received through 

electronic means, such as our secured web portals, email and CDs. 
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Once an NCP application is received, the information is stored in a database so facilitate 

its review and analysis. Quarterly reports are submitted electronically or on paper, per 

manufacturer’s preference. Non-confidential parts of the application can be accessed by the 

public by contacting the DECC.

5(c) Small Entity Flexibility

There is no small entity flexibility specific to the NCP requirements. However, small onhighway engine manufacturers may use optional procedures outlined in 86.098-14 to 

demonstrate compliance with the general standards and specific emission requirements.

The information being requested is considered to be the minimum needed to effectively 

conduct and maintain integrity of the NCP program.

5(d) Collection Schedule

Required data must be submitted for each engine family on a yearly basis for each 

"model year" that a manufacturer intends to build (or import) an engine model. Taking these 

considerations into account, manufacturers normally submit information on an annual basis and 

submit their applications at their earliest convenience.

Nonconformance penalties must be paid by specified quarterly due dates or according to 

such schedule as the Administrator may approve based on a manufacturer request. The 

manufacturer must submit corporate identification, identification and quantity of engines or 

vehicles subject to the NCP, certificate identification number and date, NCP payment 

calculations, and a statement of compliance with requirements and endorsement.

6. Estimating the Burden and Cost of the Collection

Please refer to Tables E and F for details.

6(a) Estimating Respondent Burden

Under the existing ICR, only one manufacturer has elected to participate in the NCP 

program. Given this low level of activity, EPA did not attempt to contact potential respondents, 

and chose instead to use the burden estimates provided by the respondents under the existing 

ICR. 

In estimating respondent burden for the NCP program, time was allocated for regulation 

review, training, records maintenance, quarterly reporting and production compliance auditing. 

Performing the PCA includes hours for engine selection, engine service accumulation to stabilize 
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new engine performance, engine testing, engine reallocation within the manufacturer's 

distribution system, preparation of the PCA report and maintenance of PCA testing records. 

6(b) Estimating Respondent Costs

(i) Estimating Labor Costs

To estimate labor costs, EPA used the Bureau of Labor Statistics' (BLS) National 

Industry-specific Occupational Wage Estimates (May 2011) for the Engine and Turbines 

Industry under Standard Industrial Classification (SIC) code 351 and increased by a factor of 2.1 

to account for benefits and overhead. (see: http://www.bls.gov/oes/current/naics4_333600.htm). 

A reference between the applicable SIC and NAICS codes used to update hourly rates for this 

ICR is available on the BLS website at: http://www.bls.gov/ppi/ppisicnaics14.htm. Mean, 

hourly rates were used for this estimate and are listed below.

Table D

Labor Costs Estimates

Occupation SOC Code 

Number

Mean Hourly 

Rate (BLS)

Rate 

Increased 

by Factor 

of 2.1

Mechanical Engineers 17-2141 $37.98 $79.76 

Engineering Managers 11-9041 $55.25 $116.03 

Secretaries, Except Legal, 

Medical and Executive

43-6014 $17.04 $35.78 

(ii) Estimating Capital and Operations and Maintenance Costs

Operation and maintenance costs associated with all programs covered by this information 

collection include CDs used to submit electronic files, postage, phone calls and testing expenses. 

It also includes fuel costs related to PCA mileage accumulation and testing for selected test 

engines. Wherever possible, EPA obtained and used current costs. For others, EPA used the 

Consumer Price Index Inflation Calculator on the BLS website to determine the updated cost 

(available at http://www.bls.gov/data/inflation_calculator.htm), with the estimated value rounded 

to the nearest one hundred. 

There are no capital costs associated with this collection. Related capital costs for engine 

manufacturers for test equipment, computers and facilities are covered under the certification 

program. EPA does not expect any additional capital costs related to this NCP collection.

(iii) Capital/Start-Up and Operations and Maintenance Costs
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Operation and maintenance costs associated with all programs covered by this 

information collection are listed in Table E.

There are no capital or start up costs associated with the renewal of this ICR. (See 6(b)(ii) 

for details.)

(iv) Annualizing Capital Costs

There are no capital costs associated with the renewal of this ICR. (See 6(b)(ii) for 

details.)

6(c) Estimating Agency Burden

Government cost is based on GS-13/10 salary for professional engineers & lawyers

($44.65/hr), adjusted by a factor of 1.6 to account for government benefits, resulting in a final 

rate of $71.44/hr. For managers, the hourly rate used is that of a GS-14/10 at $52.76, for a final 

rate of $84.42. The hourly rate was obtained from the Office of Personal Management, "Salary

Table 2012-GS" (http://www.opm.gov/oca/12tables/html/gs_h.asp ). Table F summarizes EPA’s 

burden.

Agency time is allocated for review of the NCP application, review of the PCA data, 

determination of the emission compliance level and review of the quarterly reports and NCP fee 

calculation.

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

In the past several years, only one manufacturer has participated in the NCP program 

annually with three to four engine families each year. EPA expects that only this one 

manufacturer will need to utilize the program. For purposes of estimating respondent burden, 

EPA has estimated that one manufacturer will use NCPs for four families each year. Two of 

these families will require new testing while the other two will be carry over families that can 

utilize the results of the PCA performed previously. The numbers for the new testing families 

have been annualized, since those will become carry over families on subsequent years.

6(e) Bottom Line Burden Hours and Cost Tables

(i) Respondent Tally

 Number of Respondents: 1

 Number of Activities: 10

 Total Hours Per Year: 541

 Total Labor Cost Per Year: $41,819

 Total Annual Capital Cost: 0
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 Total Annual O&M Costs: $39,344

 Total Costs: $81,163

(ii) Agency Tally

 Number of Responses: 1

 Number of Activities: 4

 Total Hours Per Year: 117

 Total Labor Cost Per Year: $8,839

 Total Annual Capital Cost: 0

 Total Annual O & M Costs: $56

 Total Costs: $8,895

6(f) Reasons for Change in Burden

Total burden has decreased due to a decrease in the estimated amount of respondents and 

responses. While the previous ICR estimated that 2 manufacturers would utilize NCPs, with 

three engine families each. Based on past and current experience, EPA now estimates that only

one manufacturer will use NCPs with a total of 4 engine families. 

The average burden per response has decreased only by 0.5 hour (from 23 hours/response 

to 22.5). This reflects increase use of electronic methods for reporting and recordkeeping.

6(g) Burden Statement

The annual public reporting and recordkeeping burden for this collection is estimated to 

average 23 hours per response. 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 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. 
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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 No. EPA-HQ-OAR-2005-0120, which is available for public viewing at the Air and 

Radiation Docket and Information Center in the EPA Docket Center (EPA/DC), EPA West, 

Room 3334, 1301 Constitution Ave., NW, Washington, DC. The EPA Docket Center Public 

Reading 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 Air and Radiation Docket is (202) 566-1742. The electronic version of the public 

docket at the site www.regulations.gov 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. 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 Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, 

DC 20503, Attention: Desk Office for EPA. Please include the EPA Docket ID Number (EPAHQ-OAR-2005-0120) and OMB Control Number (2060-0132) in any correspondence.