Document ID: EPA-HQ-OAR-2011-0891-0002
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2011-12-01T05:00Z

Recordkeeping and Periodic Reporting of the Production, Import,
Recycling, Destruction, Transhipment, and Feedstock Use of
Ozone-Depleting Substances (Renewal)

PART A OF THE SUPPORTING STATEMENT 

(DRAFT)

1. Identification of the Information Collection

(a) 	Title: 			Recordkeeping and Periodic Reporting of the Production,
Import, 

Recycling, Destruction, Transhipment, and Feedstock Use of
Ozone-Depleting Substances (Renewal)

	OMB Number:	2060-0170	

	EPA ICR Number:	1432.30

(b) 	Short Characterization

	  SEQ CHAPTER \h \r 1 The Montreal Protocol on Substances that Deplete
the Ozone Layer (Protocol) and Title VI of the Clean Air Act Amendments
of 1990 (CAA) established limits on total U.S. production, import, and
export of Class I and Class II controlled ozone depleting substances
(ODSs).  Under its Protocol commitments, the United States has been
obligated to cease production and import of Class I controlled
substances with exemptions for essential uses, critical uses, previously
used material, and material that will be transformed, destroyed, or
exported to developing countries.  The Protocol also establishes limits
and reduction schedules leading to the eventual phaseout of Class II
controlled substances with similar exemptions beyond the phaseout. 
Additionally, the CAA has its own limits on production and consumption
of controlled substances that EPA must adhere to and enforce.

To ensure the United States’ compliance with the limits and
restrictions established by the Protocol and the CAA, the ODS phaseout
regulations establish control measures for individual companies.  EPA
monitors compliance with the limits and restrictions for individual
United States companies through the recordkeeping and reporting
requirements established in the regulations at 40 CFR part 82, subpart
A.  To submit required information, regulated entities can download
reporting forms from EPA’s stratospheric ozone web site
(http://www.epa.gov/ozone/record/index.html), complete them, and then
send them to EPA via U.S. Mail or fax.  Upon receipt of the reports, EPA
enters and stores the data in the ODS Tracking System.  The Tracking
System is a secure database that maintains all of the data that is
submitted to EPA and allows the Agency to:  (1) track over total
production and consumption of controlled substances to satisfy
conditions of the CAA and fulfill the United States obligations under
the Protocol; (2) monitor compliance with limits and restrictions on
production, imports, exports, and specific exemptions to the phaseout
for individual U.S. companies; and (3) enforce against illegal imports
and violations related to the control of Class I and Class II
substances.  Additionally, reporting on the exemptions allows an entity
to retain the benefit of being able to produce or import a controlled
Class I ODS beyond the date of complete phaseout.

In 2008, EPA began using an electronic reporting system for producers,
importers, and exporters of Class I ODS (except methyl bromide).  The
electronic reporting system operates through the Agency’s Central Data
Exchange (CDX) and allows regulated entities to download, complete, and
submit reports electronically.  Electronic reporting can reduce time and
resources spent fulfilling reporting requirements, reduce the use of
paper, and improve the quality of the data. 

Pursuant to regulations 40 CFR part 2, subpart B, reporting businesses
are entitled to assert a business confidentiality claim covering any
part of the submitted business information as defined in 40 CFR Part 2,
Subpart B.

	Detailed burden and costs calculations for respondents and the Agency
are presented in Section 6 of this document.  The burden and cost
estimates for respondents decreased in this ICR because the phaseout of
Class I controlled substances has continued, per international agreement
under the Protocol, and thus less reporting is taking place.  Increases
in the average hourly wage rate for industry caused by normal inflation
contributed to higher respondent costs overall, but the total burden
hours, including total burden hours per respondent, are less.  EPA also
refined its estimates based on more recent information from respondents.
 

The burden and cost estimates for the Agency decreased largely because
the use of electronic reporting as well as the progressed phaseout of
Class I ODS. 

2. Need For, and Use Of, the Collection

(a)	Authority for the Collection

	

This information collection is authorized under the Section 603(b) of
the Clean Air Act and Article 7 of the Protocol.  Section 603(b) of the
Clean Air Act, “Production, import, and export level reports,”
mandates that each person who produces, imports, or exports a Class I
controlled substance file a report stating the amount of the substance
that was produced, imported, and exported by that person during the
preceding reporting period.  Article 7 of the Protocol, “Reporting of
data,” requires the United States to provide specific data annually on
its production, imports, and exports of each controlled substance.  

(b)	Practical Utility/Users of the Data

	

	The reporting and recordkeeping requirements for Class I ODS will
enable EPA to:

Ensure compliance with the restrictions on production, import, and
export of ozone-depleting substances;

Allow exempted production and import for certain uses and the consequent
tracking of that production and import;

Address industry and Federal concerns regarding the illegal import of
mislabeled used controlled substances;

Satisfy the United States’ obligations to report data under Article 7
of  the Protocol;

Fulfill statutory obligations under Section 603(b) of the CAA for
reporting and monitoring; and

Provide information to report to the U.S. Congress on the production,
use, and consumption of Class I controlled substances as statutorily
required in Section 603(d) of Title VI of the CAA.

EPA stores and analyzes the reported information to ensure companies do
not exceed their allowances.  In this regard, the information in the
reports is used for compliance monitoring for individual companies and
for monitoring U.S. compliance with its obligations under the Protocol.

Information that is collected on the production, import, and export of
controlled Class I substances is also used to develop the reports
provided to the Ozone Secretariat to meet U.S. international treaty
obligations.  Requirements to report the data annually are listed in
Article 7 of the Protocol.

Industry representatives and many Federal agencies, including EPA, are
concerned about claims of fraudulent imports of controlled substances
that are mislabeled as used, recycled, or reclaimed.  To this end, EPA
has established a petition process to provide information for
controlling the import of these materials and act as a deterrent to
potential fraud.  Under 40 CFR 82.13(g)(2), companies that want to
import used, recycled, or reclaimed controlled substances must provided
detailed information in the form of a petition about the previous use
and the future intended use of the substance.

3. Non duplication, Consultation, and Other Collection Criteria 	

(a) 	Non duplication 

All of the information requested from respondents under this ICR is
required by statute (CAA §603(b)) and is not available from other
information sources because it is proprietary information submitted by
industry sources.  

(b)	Public Notice Required Prior to ICR submission to OMB

This draft supporting statement is being prepared for review prior to
the ICR submission to OMB. EPA is requesting comments to the draft ICR,
and all supporting documents, in preparation for OMB submission. 

(c)	Consultations

  		

Recordkeeping and reporting requirements were established in the
original publication of the CFC phaseout rule.  This ICR (number
1432.30) does not add any additional recordkeeping or reporting
requirements.  To assess the current burden, EPA consulted informally
with regulated entities and analyzed historical data.

(d) 	Effects of Less Frequent Collection

Less frequent collection of data would compromise EPA’s ability to
meet statutory requirements under Section 603 of the CAA to monitor
production, import, and export levels.  Further, less frequent
collection of information would hinder EPA’s ability to identify
regulation violations.  Penalties for violations are currently assessed
at $32,500 per kilogram per day, and therefore, frequent information
collection is vital to pursue and enforce violations.  

Less frequent collection of data would also potentially place the United
States in a non-compliance status under the Protocol.  Quarterly
reporting provides EPA with the necessary time to take action if an
individual reporting person or the United States as a whole were to
begin to exceed the Protocol’s production, import, or export limits or
the limits established in Section 604 of the CAA.  Additionally, if the
United States were to exceed the limits established in the Protocol it
would undermine its ability to effectively negotiate favorable positions
in the international forum.  

(e)	General Guidelines

	This rule does not exceed any of the OMB guidelines found at 5 CFR
1320.5(d)(2).

(f)	Confidentiality

EPA informs the respondents that they may assert claims of business
confidentiality for any of the information they submit.  Information
claimed as confidential will be treated in accordance with the
procedures for handling information claimed as confidential under 40 CFR
part 2, subpart B (“Confidentiality of Business Information”), and
will be disclosed to the extent, and by means of procedures, set forth
in Subpart B..  If no claim of confidentiality is asserted when the
information is received by EPA, it may be made available to the public
without further notice to the respondents (40 CFR 2.203).  

(g) 	Sensitive Questions

This section is not applicable because this ICR does not involve matters
of sensitive nature.

4.	The Respondents and the Information Request

(a)	Respondents/SIC Codes

The appropriate North American Industry Classification System (NAICS)
for potentially affected entities are listed below in Table I.  

Table I. NAICS Classification of Regulated Entities

Category	NAICS Code

Chemical Producers, Importers, and Exporters (CFCs) 	3251- Basic
Chemical Manufacturing

Research and Development (Laboratories)	541710- Research and Development
in the Physical, Engineering, and Life Sciences

MeBr Producers, Importers, Exporters, Distributors, and Applicators
325320- Pesticide and Other Agricultural Chemical Manufacturing

(b)	Information Requested

(i) 	Data items, including recordkeeping requirements

	

Recordkeeping and reporting requirements changed substantially after the
phaseout of Class I controlled substances on January 1, 1996 (except
methyl bromide which was phased-out in 2005).  Prior to the phaseout of
Class I controlled substances, EPA administered a system of production
and consumption allowances and monitored compliance through quarterly
reports.  These types of allowances no longer exist due to the phaseout
of Class I controlled substances.  

For the exempted production and import of Class I controlled substances
(e.g., essential uses, quarantine and preshipment uses), EPA requires
reporting and recordkeeping.  All producers, importers, exporters,
distributors, applicators, and others identified in 40 CFR 82.13 must
record and/or report the following either on a quarterly or annual basis
as applicable (note, a comprehensive listing of recordkeeping and
reporting requirements is listed in 40 CFR 82.13): 

I.   SEQ CHAPTER \h \r 1 Producers:

production of each controlled substance, including the quantity produced
for uses resulting in its transformation and/or destruction by the
producer;

production of each controlled substance under the exemptions for export
to Article 5 countries, essential uses, critical uses, and QPS uses; 

the amount of controlled substance sold or transferred during the
quarter to a person other than the producer for use in processes
resulting in its transformation or eventual destruction;

for controlled substances provided to another entity for transformation,
a copy of an IRS certification or intent to transform the same
controlled substance for a particular transformer and a list of
additional quantities shipped to that same transformer for the quarter;

for controlled substances provided to another entity for destruction, a
copy of a destruction verification from that entity and a list of
quantities shipped to that entity for the quarter;

a list of U.S. purchasers of controlled substances that exported to an
Article 5 country in cases when Article 5 allowances were expended
during production;

a list of the essential-use allowance holders, distributors of
laboratory supplies and laboratory customers from whom orders were
placed and the quantity of specific essential-use controlled substances
requested and produced;

certifications from essential use allowance holders stating that the
controlled substances were purchased solely for specified essential uses
and will not be resold or used in any other manufacturing process;

in the case of laboratory essential uses, certification from
distributors of laboratory supplies that controlled substances were
purchased for sale to laboratory customers who certify that the
substances will only be used for essential laboratory and analytical
uses, and will not be resold or used in manufacturing; or, if sales are
made directly to laboratories that the controlled substances will only
be used for essential laboratory and analytical uses and will not be
resold or used in manufacturing;

written certification that quantities of critical use methyl bromide
were purchased by distributors, applicators, or approved critical users
to be used or sold only for critical uses;

for critical use methyl bromide, dated records such as invoices and
order forms, and a log of the quantity of controlled substances produced
solely for export to satisfy critical uses;

the amount of methyl bromide sold or transferred during the quarter to a
person other than the producer solely for QPS applications;

for methyl bromide produced for QPS uses, one copy of a certification
that the material will be used only for QPS applications from each
recipient of the material and a list of additional quantities shipped to
that same person for the quarter;

quantities of methyl bromide exported by the producer and/or other U.S.
companies in that control period, solely to satisfy the critical uses
authorized by the Parties for that control period.

	II. Importers:

the quantity of each controlled substance imported, either alone or in
mixtures, including the percentage of each mixture that consists of a
controlled substance;

the quantity of each controlled substance imported that is used
(including recycled or reclaimed) and the information provided in the
petition required to import used quantities of Class I controlled
substances;

the quantities of each controlled substance other than transhipments or
used, recycled or reclaimed substances imported for use in their
transformation or destruction, and the quantity sold for use in
processes that result in their destruction or transformation; 

the quantities of controlled substances imported for approved essential
or critical uses;

the amount of controlled substances sold or transferred during the
quarter to each person for use in processes resulting in their
transformation or eventual destruction;

for each quantity of a controlled substance imported: the date on which
the controlled substance was imported; the port through which it passed;
the country from which it was imported; the commodity code for the
shipment; the importer number for the shipment; a copy of the bill of
lading for the import; the invoice for the import; and the U.S. Customs
entry form;

dated records documenting the sale or transfer of the controlled
substance for use in processes resulting in transformation or
destruction;

copies of IRS certifications that the controlled substance will be
transformed or destruction verifications that it will be destroyed;

dated records of the quantity of controlled substances being purchased
for essential and laboratory uses or for eventual sale to laboratories
that certify that controlled substances are for essential laboratory and
analytical uses;

the amount of controlled substances sold or transferred during the
quarter to each person for an essential use;

certifications from essential-use allowance holders stating that the
controlled substances were purchased solely for specified essential uses
and will not be resold or used in manufacturing; and the certifications
from distributors of laboratory supplies that the controlled substances
were purchased solely for eventual sale to  laboratories that certify
the controlled substances are for essential laboratory and analytical
uses, or if sales are made directly to laboratories, verifications from
laboratories that the controlled substances will only be used for
essential laboratory and analytical uses and will not be resold or used
in manufacturing;

in the case of laboratory essential uses, a certification from
distributors of laboratory supplies that controlled substances were
purchased for sale to laboratory customers who certify that the
substances will only be used for laboratory applications and will not be
resold or uses in  manufacturing;

for methyl bromide, dated records of the quantity of controlled
substances imported for QPS applications and quantity sold for
quarantine and preshipment applications;

written certifications that quantities of methyl bromide imported solely
for QPS applications were purchased by distributors or applicators to be
used only for quarantine and preshipment applications;

written verifications from a U.S. purchaser that methyl bromide imported
solely for QPS applications upon receipt of a certification;

a list of the quantities of methyl bromide exported by the importer and
or by other U.S. companies, to a Party to the Protocol that will be used
solely for QPS applications; 

in the case of importing a container with a heel, the amount brought
into the United States with a certification that the residual amount in
each shipment is less than 10 percent of the volume of the container and
the fate of the container; a report indicating the final disposition of
each shipment must also be submitted;

in the case of importing a used substance, a copy of the petition
submitted, the EPA non-objection notice, and the bill of lading for the
import;

	III. Exporters:

names and addresses of the exporter and the recipient of the exports;

the exporter’s Employer Identification Number;

for each export: the type and quantity of each controlled substance
exported and what percentage, if any, of the controlled substance is
used, recycled or reclaimed; the date on which, and the port from which,
the controlled substances were exported to the United States or its
territories; the country to which the controlled substances were
exported; the amount exported to each Article 5 country, and the
commodity code of the controlled substance shipped;

the invoice or sales agreement containing language similar to the
Internal Revenue Service Certificate that the purchaser or recipient of
imported controlled substances, or destruction verifications that the
purchaser or recipient intends to destroy the controlled substances, or
the certification that the purchaser or recipient and the eventual
applicator will only us the material for QPS applications;

	

	IV. Persons that destroy Class I controlled substances:

a one time report stating the destruction unit’s efficiency and the
methods used to record the volume destroyed and those used to determine
destruction efficiency and the name of other relevant federal or state
regulations that may apply to the destruction process.

	V. Persons that purchase/receive and subsequently destroy Class I
substances that 	were originally produced without expending allowances:

a destruction verification (to the producer or importer) containing the
following: 

the identity and address of the person intending to destroy controlled
substances;

indications of whether those controlled substances will be completely
destroyed, or less than completely destroyed, in which case the
destruction efficiency at which such substances will be destroyed must
be included;

period of time over which the person intends to destroy controlled
substances;

signature of the verifying person;

the name and quantities of Class I controlled substances that were
destroyed at the end of the control period.

VI. Persons that transform Class I controlled substances:

the name and quantities of Class I controlled substances transformed at
the end of the control period;

in cases where Class I controlled substances are purchased for
transformation, the person who transforms the substances is to provide
the producer or importer with an IRS certification that the controlled
substances are to be used in processes resulting in their
transformation. 

VII. Persons that transship Class I substances:

records that indicate that the shipment originated in a foreign country
destined for another foreign country, and does not enter interstate
commerce with the United States.

	VIII. Persons allocated essential-use allowances:

quantities of each controlled substance received from each producer
and/or each importer during that quarter and the country from which the
controlled substance was imported;

[For the past two years, essential-use CFCs were not requested by the
United States and therefore much of the previous reporting burden
associated with this section has been removed.]

	IX. Distributors of laboratory supplies receiving controlled substances
under the 	global laboratory essential use exemption:

quantities received of each controlled substance from each producer or
importer;

quantities of each controlled substance purchased by each laboratory
customer whose certification was previously provided to the distributor;

in cases where the distributor sells the Class I controlled substances
as reference standards for calibrating equipment, the distributor must
submit the quantity of each controlled substance purchased by each
laboratory customer whose certification was previously provided to the
distributor.

X. Persons that distribute quarantine and preshipment methyl bromide:

certifications provided to the producer or importer that quantities
received that were produced or imported solely for QPS applications
under the exemptions will be used only for quarantine applications or
preshipment applications;

certifications from applicators, prior to delivery of the quantity, that
the quantity of methyl bromide ordered will be used solely for QPS
applications;

the total quantity delivered to applicators in which certifications were
received that state the methyl bromide would be use solely for QPS
applications.

XI. Persons that apply quarantine and preshipment methyl bromide:

a document from the commodity owner, shipper or their agent requesting
the use of methyl bromide citing the regulatory requirement that
justifies its use;

a copy of the certification (provided to the distributor before a
shipment) that the quantity of controlled substances will be used only
for QPS applications.

XII. QPS commodity owner, shipper, or their agent:

records for each request, certifying knowledge of the requirements
associated with the exemption for QPS applications; the record must
include the certifying language listed in the regulation.  

XIII. Trades with another Party to the Protocol:

[Allowances associated with this type of trade no longer exist, so this
section will be removed in the final supporting statement document.]

XIV. Transfers of allowances for Class I controlled substances:

in cases of transfers of essential-use CFCs:

the specific MDI products that the transferee plans to produce with the
transferred CFCs;

the country(ies) where the CFC MDI produced with the transferred
essential-use CFCs will be sold if other than in the United States; 

certification that the essential-use CFCs will be used in the production
of essential MDIs; if the MDIs are to be sold in the United States, the
certification must state that MDIs produced with the transferred
essential-use CFCs are listed as essential and were approved by the Food
and Drug Administration before December 31, 2000; if the MDIs produced
with the essential-use CFCs are to be sold outside the United States,
the transferee must verify that the MDIs produced with the essential-use
CFCs are considered essential by the importing country;

a letter from the transferor stating that it concurs with the terms of
the transfer as requested by the transferee;

in cases where the trade is international:

a signed document from the principal diplomatic representative in the
Party’s embassy in the United States stating that the appropriate
authority within the nation has approved the transfer of the
essential-use CFCs.

XV. Interpollutant conversions (Article 5 allowances):

[Article 5 allowances for Class I chemicals (other than methyl bromide)
have been phased out so this section will be eliminated in the final
supporting statement document.  Overall burden has been adjusted to
reflect this obsolete reporting activity.  

XVI. Persons wanting to import used Class I controlled substance

a petition containing:

name and quantity in kilograms of the used controlled substance to be
imported;

name and address of the importer, the importer ID number, the contact
person, and the phone number;

name, address, contact person, phone number and fax number of all
previous source facilities from which the used controlled substance was
recovered;

a detailed description of the previous use of the controlled substance
at each source facility and a best estimate of when the specific
controlled substance was put into the equipment at each source facility,
and, when possible documents indicating the date the material was put
into the equipment;

a list of the name, make and model number of the equipment from which
the material was recovered at each source facility;

name, address, contact person, phone number and fax number of the
exporter and of all persons to whom the material was transferred or sold
after it was recovered from the source facility;

the U.S. port of entry for the import, the expected date of shipment and
the vessel transporting the chemical; if at the time of submitting a
petition the importer does not know the U.S. port of entry, the expected
date of shipment and the vessel transporting the chemical, and the
importer receives a non-objection notice for the individual shipment in
the petition, the importer is required to notify the Administrator of
this information prior to the actual U.S. Customs entry of the
individual shipment;

a description of the intended of the used controlled substance, and,
when, possible, the name, address, contact person, phone number and fax
number of the ultimate purchaser in the United States;

name, address, contact person, phone number and fax number of the U.S.
reclamation facility, where applicable; if someone at the source
facility recovered the controlled substance from the equipment, the name
and phone and fax numbers of that person; 

if the imported controlled substance was reclaimed in a foreign Party,
the name, address, contact person and fax number of any or all foreign
reclamation facility(ies) responsible for reclaiming the cited shipment;

an export license from the appropriate government agency in the country
of export and, if recovered in another country, the export license from
the appropriate government agency in that country;

if the imported used controlled substance is intended to be sold as a
refrigerant in the U.S., the name and address of the U.S. reclaimer who
will bring the material to the standard required under Section 608 of
the CAA, if not already reclaimed to those specifications;

a certification of accuracy of the information submitted in the
petition.

		

In addition, all entities may be required to provide other such
information that the Administrator may reasonably require to comply with
requests from the Ozone Secretariat seeking information required by
decisions taken by the Parties to the Montreal Protocol.  All records
and reports must comply with requirements for Class I controlled
substances in Subpart A of the regulations.  Reports and records
associated with the reports listed above must be kept for three years. 
All amounts must be reported in kilograms.  These recordkeeping
requirements pertain to original documents that are held by companies in
the normal course of conducting business such as Customs entry forms,
accounts of daily production runs, sales invoices, and bills of lading. 
Information from these recordkeeping documents is summarized in reports.
 Recordkeeping requirements are designed to aid EPA in compliance
monitoring, site inspection, and enforcement actions.  

(ii) 	Respondent Activities

		

Persons that produce, import, export, distribute, supply, transform,
destroy, and apply controlled Class I ODS are to maintain records and
report to EPA or persons involved in transactions on a quarterly,
annual, or transactional basis as mandated by applicable sections of the
regulations.  All records and reports must comply with applicable
requirements specified in: §82.12(d) (“Transfers of essential-use
CFCs”), §82.13 (“Recordkeeping and reporting requirements for Class
I controlled substances.”).  These records and copies of reports are
to be maintained for three years.  

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

(a) Agency Activities

	

Enter, maintain, and manage information submitted from companies in the
ODS Tracking System;

Respond to companies submitting tracking/monitored information to
confirm transactions and provide allowance balances;

Review and respond to petitions submitted to import used Class I
controlled substances;

Review information and conduct compliance monitoring activities related
to restrictions on production, import, export, transformation, and
destruction of Class I controlled substances for individual companies by
comparing data with other sources of information;

Inspect records maintained by producers, importers, exporters,
transformers, and destroyers of ODS;

Review information in the Tracking System to ensure that the United
States is not exceeding its obligations under the Montreal Protocol
which limits production and consumption of controlled ODS;

Review information in the Tracking System to ensure exempted production
and imports do not exceed limits statutorily set in Section 604 of the
CAA;

Compile reports mandated by United States obligations under the Montreal
Protocol and the CAA, including reports to Congress and the Ozone
Secretariat.

(b)	Collection Methods

	

	EPA provides reporting forms for regulated participants to use to
report the required information.  Reporting forms for Class I controlled
substances, as well as guidance on completing the forms, are available
on EPA’s website at   HYPERLINK
"http://epa.gov/ozone/record/classone.html" 
http://epa.gov/ozone/record/classone.html .  Reporting forms can be sent
to EPA in hard copy form or submitted electronically.  

The use of the reporting forms is voluntary, but they are generally used
by every participant in the regulatory program.  The forms facilitate
and streamline the submission of required data for respondents.  The
reporting requirements, first promulgated in the July 30, 1992, final
rule, and then simplified and reduced through amendments published in
the Federal Register on May 10, 1995, reduced the administrative and
reporting burden.  

In general, the regulatory program and the reporting requirements are
smaller after the phaseout.  As of January 1, 1996 (the post-phaseout
period), the system of production and consumption allowances was no
longer used, simplifying overall tracking and monitoring.  New reporting
and recordkeeping requirements exist, however, for the exempt uses of
Class I substances.  The reporting procedures for the post-phaseout
period were selected for their administrative feasibility and minimal
reporting burden.  

(c)	Small Entity Flexibility 

	Much of this information collection is required by statute.  Additional
information collection is undertaken to support the United States’
reporting obligations under the Protocol. The information collection is
required to 1) ensure essential-use material is available to
stakeholders, 2) develop these nationally and internationally mandated
reports, and 3) maintain compliance with Sections 604 and 606 of the
CAA. 

	The burden on all affected entities, and especially the burden on small
entities, has been reduced to every extent possible.  Laboratories, the
only small entities required to submit information, are required to
certify purchases of exempted Class I controlled substances once per
year, indicating that they will only be used for laboratory or
analytical purposes and not be resold, and identifying the specific use
to which the substances will be put.  This requirement is to ensure
proper use of exempted production and import and to allow the United
Sates to report specific information to the Secretariat to the Protocol
regarding the use of ODS for laboratory purposes as required under Annex
II of Decision VI/9.  All other respondents to the program are large
companies.

(d)	Collection Schedule

After the phaseout on January 1, 1996:

Producers, importers, exporters of methyl bromide, laboratory suppliers,
and distributors of QPS methyl bromide must report to EPA quarterly (45
days after the end of each quarter);

Exporters of non-methyl bromide Class I controlled substances, and
persons that destroy and transform Class I controlled substances
(including methyl bromide), are to report to EPA annually (45 days after
the end of the control period);

Persons wanting to trade essential use CFCs or import used Class I
controlled substances (i.e. petition) are to submit reports to EPA on a
transactional basis.

All entities may be required to provide other such information that the
Administrator may reasonably require to comply with ad hoc requests from
the Ozone Secretariat seeking information required by decisions taken by
the Parties to the Montreal Protocol subsequent to the publication of
this ICR.  The Agency anticipates this, on average, to occur less than
annually per prospective respondent.

6. 	Estimating the Burden and Cost of Collection 

(a) 	Estimating Respondent Burden

	

	 The basis of the analysis is the identification of the principal steps
involved in complying with EPA recordkeeping and reporting requirements
and the estimated burden associated with each step.  EPA identified 18
reporting activities which contain all information mandated by EPA’s
regulations (see Table II. Respondent Burden for details).  EPA
estimated the number of respondents per reporting activity based on the
quantity of respondents that submitted reports over the last several
years.  The number of reports submitted per year is either four
(quarterly), one (annually), or other (per transaction).  EPA estimated
the amount of time for data compilation and report preparation by
analyzing historical information.  The last three collection activities
are not submitted to EPA, rather they are provided to another entity,
such as a producer or importer, as mandated.  This ICR (1432.30) does
not add any additional recordkeeping and reporting requirements from the
previous ICR.

Table II. Respondent Burden

	A	B	C	D	E	F	G

Collection Activity: Recordkeeping and Reporting	 Number of Respondents
Responses per respondent per control period	Total Responses   (AxB)	Data
Compilation (hours)	Report Preparation (hours)	Hours per Response (D+E)
Total Hours per year  (CxF)

Producer's Report	7	4	28	2	0.5	2.5	70

Producer's Report (MeBr)	1	4	4	4	0.5	4.5	18

Importer's Report	5	4	20	4	0.5	4.5	90

Importer's Report (MeBr)	3	4	12	4	0.5	4.5	54

Exporter's Report	13	1	13	4	0.5	4.5	58.5

Exporter's Report (MeBr)	4	4	16	4	0.5	4.5	72

Destruction 	7	1	7	4	0.5	4.5	31.5

Transformation	8	1	8	4	0.5	4.5	36

Essential Use Allowance Holders	0	4	0	4	0.5	4.5	0

Laboratory Supply/Distribution	8	4	32	4	0.5	4.5	144

Transfers of substances 

(int'l and domestic)	1	1	1	4	0.5	4.5	4.5

Transfers of allowances

(int'l and domestic)	0	0	0	4	0.5	4.5	0

QPS MeBr Distributor Report	15	4	60	4	0.5	4.5	270

Petitions for used imports

(for destruction)	3	11	33	1	0.5	1.5	49.5

Petitions for used imports 

(for reuse)	3	7	21	4	0.5	4.5	94.5

SUBTOTAL FOR REPORTING TO EPA ONLY	78	54	255	55	7.5	62.5	992.5

QPS MeBr Applicator Certification	15	6	90	0.5	0.5	1	90

Commodity Owner, Shipper or Agent Recordkeeping (MeBr)	50	10	500	0.5	0.5
1	500

Lab Certification	1,000	1	1000	0.5	0.5	1	1000

SUBTOTAL FOR CERTIFICATIONS	1,065	17	1,590	2	2	3	1,590

TOTALS (Respondents, Responses, and Hours)	1,143	 	1,845	 	 	 	2,583

TOTAL-  BURDEN HOURS PER YEAR/ RESPONDENT	 	 	 	 	 	 	2.3

(b) Estimating Respondent Costs

(i). Estimating Labor Costs

To determine the labor costs associated with recordkeeping and
reporting, EPA used an hourly industry wage rate of $50.08.  This is the
average hourly wage rate for professional and related persons derived
from the Bureau of Labor Statistics Employer Cost and Employee
Compensation Table 2 (http://www.bls.gov/news.release/ecec.t02.htm ),
September 8, 2011.  EPA added 110 percent to the hourly industry wage
rate to reflect additional costs for overhead and fringe, increasing the
wage rate to $105.15 per hour.  The total burden hours per year was
estimated to be 2,583 hours, which when multiplied by the hourly
industry wage rate of $105.15 equals $271,550 $for total yearly costs. 
To determine yearly costs per respondent, per report, EPA multiplied the
burden hours per respondent per report by the average industry wage
($105.15). See Table III below for details.  

Table III.  Yearly Respondent Costs Calculations

Industry Wage (includes overhead and fringe)	Total Burden Hours	Total
Yearly Costs

$105.15 	2,583	$271,550

Industry Wage (includes overhead and fringe)	Total Burden
Hours/Respondent	Total Yearly Respondent Costs/Respondent

$105.15 	2.3	$238

(ii). Estimating Capital and Operations and Management Costs

	

Operation and maintenance costs include expenses such as photocopying,
packaging, and postage.  Although variations may occur based on the
quantity of the data submitted to EPA as well as the method in which the
respondent submits the data (i.e. regular post or express mail), $3.00
was estimated to be the cost per respondent per report.  To determine
the total capital and operations and management costs, 1,845 (total
responses) was multiplied by $3.00 and equaled $5,535.  

(iii). Capital and Start-up Costs

Capital and start-up costs were estimated to be $0 because new
recordkeeping or reporting requirements have not been added to this ICR.
 Persons that are required to maintain records and report information
have participated in the program for several years. 

(iv). Annualizing Capital Costs

	

Capital/start-up costs were estimated to be $0.  

(c)	Estimating Agency Burden and Costs

To determine agency and burden costs, EPA identified three main
activities associated with recordkeeping and reporting: receiving and
entering data submitted, reviewing data entries, and preparing and
reviewing company data balance statements.  EPA then estimated hours per
activity, per report received, per Agency staff member.  EPA also
developed estimates for maintaining the Tracking System and processing
reports for the control period.  See Table IV below for details.  

	The hourly wage rates for EPA technical and managerial staff were
derived from the 2011 OPM hourly pay table and then multiplied by 1.6,
the standard government benefits multiplier.  The hourly wage rates are
as follows:  EPA estimates an average hourly labor cost of $59.30 X 1.6
= $94.88 (GS-15 level) for managerial costs and  $42.66 X 1.6 = $68.26
(GS-13 level) for technical staff.  Each hour of extramural (contractor)
time is valued at $95.00 per hour including overhead and fringe.  The
total was estimated to be $93,033 per year. This is less than the
previous ICR ($106,057 per year) for a number of reasons. As mentioned
previously, Class I reports are reducing due to the continued phaseout
of Class I controlled substances.. Also, EPA revised managerial hours
associated with review of the reporting forms (from .5 hours to .2 hours
per form), as most questions and review are made at the technical level.

Table IV. Agency Burden and Cost

Agency Activity	Number of Reports	Managerial Hours 	Technical Hours 
Extramural Hours 	Total Costs (Number of Reports x Labor Costs)

 	per Year	$94.88 	$68.26 	$95.00 	 

1. Receiving and entering data;	255	0	1	0	$17,406 

	$68.26 

2. Reviewing data entries;	255	0.2	1	0	$22,245 

$18.98 	$68.26 

($4,840+$17,405)

3. Preparing and reviewing company data balance statements;	255	0.2	1	0
$22,245 

$18.98 	$68.26 

($4,840+$17,405)

4. Maintaining ODS tracking system and reports	NA	20	150	200	 

(20*$94.88)	(150*$68.26)	(200*$95)

	$1,897.60 	$10,239.00 	$19,000.00 	$31,136.60 

Total Annual Burden Hours	 	 	 	 	932 

Grand Total Per Year =	$93,033 

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

	The values for respondent universe and total burden and costs are based
on estimates of the number of respondents and hours to compile data and
prepare reports.  Historical data from reports submitted over the last
several years and informal consultations with stakeholders were used to
develop estimates.  Costs associated with compliance for EPA and
respondents are averages and were estimated from publicly available data
sources.  The total burden hours for respondents decreased in this ICR
because it refines the hourly burden estimates for certifying the
Quarantine and Preshipment use of methyl bromide and laboratory use of
all ozone depleting substances.  Increases in the average hourly wage
rate for industry caused by normal inflation also contributed to higher
respondent costs.  Additionally, estimates were refined based on
historical information.  The total also reflects Agency practice of
periodically seeking necessary information from the regulated community
through the use of its authority under Section 114 of the Clean Air Act.
No new recordkeeping and reporting requirements were added.  

(e) 	Bottom Line Burden Hours and Cost Tables

	

	(i)  Respondent Tally 

To determine bottom line burden hours and costs for respondents, EPA
estimated the total number of responses per control period.  The total
number of responses for all respondents was calculated to be 2,583
hours.  Therefore, over the three year span of this ICR, the total hours
estimated for compliance for respondents is estimated to be 7,749 hours
(2,583 x 3 years).

(ii) The Agency Tally

	EPA estimated the amount of time required to complete each of the three
main activities associated with the reports.  In addition, hours and
costs for maintaining the Tracking System and reporting forms were
determined.  Therefore, over the three year span of this ICR, the total
Agency cost is estimated to be $279,099 ($93,033 x 3 years).  

(f)	Reasons for Change in Burden

Overall, respondent burden and cost for this ICR is slightly higher than
the previous ICR due to inflation costs, as actual burden hours were
reduced,  This is mainly due to the continued phase out of Class I
controlled substances and thus, reduced reporting activity related to
such chemicals.  Agency burden reducted due to reduced managerial
oversight and because estimates were refined.  

Table V.  Burden Summary

 	1432.29	1432.3

	(ICR Renewal)	(ICR Renewal)

Respondents annual burden hours	2,810	2,583

Respondents annual labor costs	$263,662	$271,550

Respondent capital/start-up costs	$0	$0

Respondents O&M costs	$5,580	$5,580 

Agency’s annual burden hours	1,352	932 

Agency’s annual labor costs	$106,057	$93,033 

(g) 	Burden Statement 

	The annual public reporting and recordkeeping burden for this
collection of information is estimated to average 2 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.     

	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-2008-0264, 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 and Information Center
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, DC 20503,
Attention: Desk Office for EPA.  Please include the EPA Docket ID No.
EPA-HQ-OAR-2008-0264 and OMB control number 2060-0170 in any
correspondence.

PART B OF THE SUPPORTING STATEMENT

	EPA did not develop Part B of the supporting statement because this ICR
did not involve statistical sampling.  

 NAICS codes were retrieved from the “2002 NAICS Codes and Titles”
provided by the U.S. Census Bureau at,
http://www.census.gov/epcd/naics02/naicod02.htm.

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