SUPPORTING STATEMENT FOR THE

RENEWABLE FUELS STANDARD (RFS2) PROGRAM (FINAL RULE)

(DRAFT – November 2012)

A. JUSTIFICATION

1. Identification of the Information Collection

a. Title: Renewable Fuels Standard (RFS2) Program, EPA ICR No. 2380.01,OMB 

Control Number 2060-0637.

b. Short characterization:

The Energy Policy Act (EPAct) of 2005 amended the Clean Air Act, section 

211(o), and required the existing RFS program. The existing RFS program is referred to 

in this supporting statement as "RFS1". The RFS1 program started in 2006 and was 

covered by EPA ICR No. 2242.02, OMB Control Number 2060-0600. Please refer to 

“Regulation of Fuels and Fuel Additives: Renewable Fuel Standard Program – Notice of 

Proposed Rulemaking” and “Regulation of Fuels and Fuel Additives: Renewable Fuel 

Standard Program – Final Rule” (both available in docket number EPA-HQ-OAR-2005-

0161) for a detailed discussion of the RFS1 program.

The Energy Independence and Security Act (EISA) of 2007 further amends the 

Clean Air Act, section 211(o), and has required EPA to propose new regulations for 

renewable fuels. The new RFS program is referred to in this supporting statement as 

"RFS2." Under RFS2, the volume requirement and types of renewable fuels are 

expanded; non-road uses are included (RFS1 only affected motor vehicle fuel); there are 

additional types of waivers and special provisions for renewable fuel types; and EPA has 

implement an EPA-Moderating Transaction System (EMTS) for RINs. Additional parties 

will be required to register, keep records, and report. Please refer to the Final Rule 

(available in docket number EPA-HQ-OAR-2005-0161) for a detailed discussion of the 

RFS2 program. 

This supporting statement provides tables that break down reporting items by party (e.g. 

producer, importer, refiner, etc.,) and the cost related to their reporting activity. For 

compliance purposes, under RFS2, volumes of renewable fuel are identified through the 

use of renewable identification numbers (RINs) that are initially generated by the 

producer of the renewable fuel. However, there are additional types of RINs and the 

volume of RINs traded is expected to be great.

The Regulatory Impact Analysis (RIA), which was prepared for the Final Rule, 

has been placed in the public docket. The document was consulted to provide additional 

detailed information about the regulated universe (see Chapter 1 of the draft RIA). We

also considered the actual number of reporting parties under FRS1 and similar reporting 

programs. 
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2. Need For, and Use of, the Collection

a. Authority for the Collection

Sections 114 and 208 of the Clean Air Act (CAA), 42 U.S.C. §§ 7414 and 7542, 

authorize EPA to require recordkeeping and reporting regarding enforcement of the 

provisions of Title II of the CAA. 

b. Practical Utility/Uses of the Data

The recordkeeping and reporting requirements of this regulation will allow EPA to 

monitor compliance with the RFS program.

3. Non-duplication, Consultation, and other Collection Criteria

a. Non-duplication

Efforts have been made to eliminate duplication in this information collection.

b. Public Notice

A Notice will be published in the Federal Register for comments.

c. Consultations

We have drawn upon our experience with RFS1 and with similar fuels regulations 

to develop the estimates in this supporting statement. Interested parties may also be 

interested in reviewing "Chapter 1 – Industry Characterization" of the draft Regulatory

Impact Analysis (RIA) available in the public docket. Some assumptions from the RIA

were used for this supporting statement.

d. Effects of Less Frequent Data Collection

We have designed the reporting schedule to coincide with existing reporting 

deadlines applicable to many of the same parties under such programs as RFG 

(Reformulated Gasoline) and anti-dumping and diesel fuel. Less frequent collection of 

data would make it impossible to carry out the provisions of the CAA and EISA. 

e. General Guidelines

This rule does not exceed any of the OMB guidelines.

f. Confidentiality
We inform respondents that they may assert claims of business confidentiality

(CBI) for information they submit. Actual RINs should not be treated as confidential 

business information under RFS2, as they are necessary identifiers to accompany

renewable fuels. Any information claimed as confidential will be treated in accordance 

with 40 CFR Part 2 and established Agency procedures. Information that is received 

without a claim of confidentiality may be made available to the public without further 

notice to the submitter under 40 CFR § 2.203.

g. Sensitive Information

This information collection does not require submission of any sensitive 

information.

4. The Respondents and the Information Requested

Respondents/with NAICS and SIC Codes

The respondents to this information collection fall into the following general 

industry categories: petroleum refineries (324110/2911), ethyl alcohol manufacturers 

(325193/2869), other basic organic chemical manufacturing (325110/2869), chemical and 

allied products merchant wholesalers (426990/5169), petroleum bulk stations and 

terminals (422710/5171), petroleum and petroleum products merchant wholesalers 

(422720/5172), and other fuel dealers (454319/5989). 

Using the terminology associated with the RFS2 Rule, we have assumed 

the following classes of party, which are covered by this supporting statement. 

 Producers of renewable fuels

 Importers

 Obligated Parties

 Parties who own RINs (including foreign RIN owners)

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

Information Management

a. Agency Activities

 All reports and registrations will be reviewed by EPA for 

completeness and for potential violations.

 Potential violations will be referred to enforcement personnel.

 Registration numbers will be issued for new registrants.

 Contacting reporting parties if there is a problem with their 

submission.
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b. Collection and Methodology and Management

EPA wants to continue to receive all reports, registrations, initial registrations and 

updates. We anticipate receiving data in a simplified and secure fashion via the Agency's 

electronic Central Data Exchange (CDX). Information claimed as CBI will be stored in 

appropriately controlled areas.

c. Small Entity Flexibility

This collection will not adversely affect small entities. Flexibility provisions are 

available to small entities.

d. Collection Schedule

Registrations are received on a rolling basis. Updates may be sent in at any time 

after initial registration. New parties may enter the regulated industry at any time, 

triggering registration requirements. Petitions for new renewable fuels and pathways are 

also being received.

6. Estimating the Burden and Cost of Collection

a. Estimating the Respondent Universe

We drew upon experience implementing similar regulations among the same 

entities to develop estimates of the burden associated with this collection. 

b. Estimating the Respondent Burden and Cost

Three labor categories are involved: managerial (includes legal and professional 

review), technical, and clerical. The estimates used the Bureau of Labor Statistics figures 

from "National Industry-Specific Occupational Employment & Wage Estimate 

“Petroleum and Coal Products Manufacturing” (May 2011), with a 3% annual inflation 

factor applied to bring the values to the present. Using this method, the following wages 

and benefits apply by category:

Wages and Benefits

Managerial $67.44 per hour

Technical $65.56 per hour

Clerical $22.17 per hour

Doubling for company overhead beyond wages and benefits, and for convenience, 

rounding up to the dollar, gives the following rates for this ICR:
Total Employer Cost

Managerial $135.00 per hour

Technical $131.00 per hour

Clerical $ 44.00 per hour

It is assumed that for each hour of activity the mix will be about 0.1 hour managerial, 0.7 

hour technical, and 0.2 hour clerical. This gives an average labor cost of $103 per hour, 

which will be used in this ICR. For purchased services related to attest engagements and 

some items of registration, we have doubled this hourly cost to $206 in order to more 

accurately reflect the cost of a certified public accountant (CPA) or licensed professional 

engineer's (PE) services.

The estimates by party are indicated in Tables I –V below.

c. Estimating the Agency Burden and Cost 

EPA must generate company and facility registration number(s) for new 

registrants and notify them of these numbers, which must appear on reports. Report 

formats and instructions/guidance must be prepared by Agency personnel. Reports will 

be processed by contractors and must be reviewed by Agency personnel. Reporting 

parties must be contacted if there is a problem with their submission. We have developed 

forms for RFS2 reporting to include four types, rather than one type, of RIN unlike the 

RFS1 templates. We have provided RFS2 reporting templates as an attachment to this 

document.

This supporting statement considers all Agency costs associated with accepting 

new registrants and new reports associated with RFS2, as expressed in EPA ICR Number 

2333.02. Using the RFS1, and the RFG and anti-dumping ICR, and other recent fuelsrelated ICRs as a guide in developing these initial estimates for RFS, we anticipate that 

RFS2 may require the equivalent labor of one full time GS-13 technical employees for a 

total of $115,000, and labor costs of $54,875 in the clerical category and $19,438 in the 

management category.

1

 Since we are using the CDX, some costs incurred by the Agency

will be tied to the number of registrants who send us reports. Specifically, there is an 

annual "subscription cost" associated with the use of CDX that is passed on to the EPA 

program office and we estimate that registrants due to RFS2 will cost our office 

 

1 These estimates are derived from "OPM Salary Table 2012-DCB," effective January 2012. This table 

may be found at http://www.opm.gov/oca/06tables/indexGS.asp. The extreme of step 10 was assumed for 

all categories. We have assumed a half-time GS-7 clerical worker, one full-time GS-13 technical worker, 

and a GS-15 manager working one-eighth of his/her time managing this project (0.125). All values were 

multiplied by 1.6 (which is a common factor utilized in ICRs to account for overhead costs). We rounded 

the resulting dollar value to the nearest thousand. This cost is per year.
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approximately $200,000 per year in 2013, 2015 and 2015. We anticipate $266,666 in 

annual contract costs related to registration and reporting activities. We anticipate IT

development and testing costs at $ 600,000 divided by three years to yield an annual cost 

of $200,000. Adding the following values results in an annual estimated Agency burden 

as follows:

One GS-13 technical employee (full time) = $ 115,000

One GS-7 clerical worker (full-time) = 54,875

One GS-15 manager (1/8 time) = 19,438

Annual CDX subscription fee = 200,000

Annual contract costs = 266,666

Testing and development= 200,000

TOTAL = $855,979

 As with all items in this supporting statement, we strongly encourage comment 

on the estimated Agency burden and on the Agency activities associated with this 

proposed information collection. 

 

d. Estimating the Respondent Universe

We were able to estimate the number of regulated entities drawing upon 

experience regulating the same or similar entities. 

e. Bottom Line Burden Hours and Costs

From the tables, we estimate the following annual totals:

TOTAL NO. OF RESPONDENTS: 6,065

TOTAL NO. OF RESPONSES: 6,065

TOTAL BURDEN HOURS: 52,095

TOTAL COST TO RESPONDENTS: $ 8,010,130

f. Reason for Change in Burden

This decrease came due to the change in the respondent universe. Two obligated 

parties categories, the importers of renewable fuels and any party who own/intend to own 

RINs which include blenders, brokers and marketers dropped significantly. Importers 

dropped from 360 respondents to 270 and any party who own/intend to own RINs which 

include blenders, brokers and marketers dropped from 3000 respondents to 1650 thus 

lessening the reporting burden. The number of respondents by these two parties decreased 

by a total of 6,638 responses and 7530 hours. 
g. Burden Statement

The annual public reporting and recordkeeping burden for this collection of 

information is estimated to be 7.9 hours per response (total number of hours divided by

total number of responses). 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. 

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-2005-0161, which is available for 

online viewing at www.regulations.gov,or in person viewing at the Air Docket in the EPA 

Docket Center in Washington, DC (EPA/DC). The docket is located in the EPA West 

Building, 1301 Constitution Avenue, NW, Room 3334, and is open from 8:30 a.m. to 4:30 

p.m., Eastern Standard Time, Monday through Friday, excluding legal holidays. The 

telephone number for the Reading Room is (202) 566-1744, and the telephone number 

for the Air Docket is (202) 566-1742.

You may use www.regulations.gov 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 EPA-HQ-OAR-2005-0161. 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-2005-0161 and OMB Control 

Number 2060-0637 in any correspondence.

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