Document ID: EPA-HQ-OAR-2015-0202-0003
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2015-06-18T04:00Z

Supporting Statement
                                      For
                        Information Collection Request
Recordkeeping and Reporting Requirements for Regulations of Fuel and Fuel Additives: Renewable Fuel Pathways (RFS) Pathway II and Technical Amendments to the RFS2 Standards and E15 Misfueling Mitigation Requirements.

                           40 CFR Part 80, Subpart M
                                       

                                EPA ICR 2520.01
                                       
                                       
                                       
                   Office of Transportation and Air Quality
                     U.S. Environmental Protection Agency
                                       
	

A.	JUSTIFICATION

1.	Identification of the Information Collection

a.	Title:  Information Collection Request: Regulation of Fuels and Fuel Additives: RFS Pathways II, and Technical Amendments to the RFS Standards and E15 Misfueling Mitigation Requirements. Information Collection Request (ICR) No.2520.01, OMB Control Number 
2060-NEW.
 
b. 	Short characterization:
 
	The requirements covered under this ICR are included in the RFS Pathways II final rule.
In the final rule, EPA finalized the renewable fuels standard (RFS) program regulations at 40 CFR Part 80, Subpart M. We believe these provisions will facilitate the introduction of new renewable fuels as well as improve implementation of the program. These provisions includes various changes related to biogas including changes to the revised compressed natural gas (CNG)/liquefied natural gas (LNG) pathway and amendments to various associated registration, recordkeeping, and reporting provisions. The final regulation includes a lifecycle greenhouse gas emissions analysis for renewable electricity, renewable diesel and naphtha produced from landfill biogas. Adding these new pathways will enhance the ability of the biofuels industry to supply advanced biofuels, including cellulosic biofuels, which greatly reduce the greenhouse gas emissions (GHG) compared to the petroleum-based fuels they replace. It also addresses "nameplate capacity" issues for certain production facilities that do not claim exemption from the 20 percent GHG reduction threshold. In the accompanying final rule for this ICR, EPA addressed issues related to crop residue and corn kernel fiber and finalized an approach to determining the volume of cellulosic Renewable Identification Numbers (RIN's) produced from various cellulosic feedstocks. We also included a lifecycle analysis of advanced butanol and discussed the potential to allow for commingling of compliant products at the retail facility level as long as the environmental performance of the fuels would not be detrimental. Several other amendments to the RFS2 program were included.

	In the final rule, EPA also amended various changes to the E15 (gasoline containing up to 15 volume percent ethanol) mis-fueling mitigation regulations (MMR) at 40 CFR Part 80, Subpart N.  Among the E15 changes finalized were technical corrections and amendments to sections dealing with labeling, E15 surveys, product transfer documents, and prohibited acts. Technical amendments and corrections for this regulations had no bearings on the industry estimates.

	Lastly, EPA finalized changes to the survey requirements associated with the ultra-low sulfur diesel (ULSD) program. This change is not addressed here because there are fewer than nine respondents.
	   

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 EPA will use the information contained in the Agency's Central Data Exchange (CDX), Engineering Reviews and Attest Engagements under the Pathways II final rule to evaluate and monitor the compliance of parties involved in the introduction of new renewable fuel pathways related to biogas and electricity. 

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

	a. 	Non-duplication

	Efforts have been made to eliminate duplication in this information collection. The information is not considered general in nature and is not found in other databases, directories or sources. The data submitted to EPA is specific to a company's business practices.
	
      b. 	Public Notice
      
	A Notice of Proposed Rulemaking was published in the Federal Register for comments (78 FR 36041, June 14, 2013). Additionally, a supporting statement for the proposed rule was docketed to permit interested parties to comment on it.

	c. 	Consultations

      Many of the changes are being finalized in order to facilitate the introduction of new renewable fuels under the RFS2 program by suggestion of industry stakeholders. Other changes are being finalized to allow flexibility and better facilitation of the rule.
	
	
      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 other EPA fuel programs such as the Reformulated Gasoline (RFG) and anti-dumping program and the ultra-low sulfur diesel fuel program. Less frequent collection of data would hinder the EPA's ability to monitor compliance and would likely lead to noncompliance.

	e. 	General Guidelines

	This information collection activity complies with 5 CFR 1320.6, except that respondents would be required to keep certain records for longer than three years. Section 40 CFR Part 80.1454(l) requires record retention for five years from the date the records were created. 
	
	f. 	Confidentiality

	We inform respondents that they may assert claims of business confidentiality (CBI) for information they submit. RIN's are treated as confidential business information under RFS2, as they are necessary identifiers to accompany renewable fuels. RIN information when submitted has a confidential claim and is treated in accordance with 40 CFR Part 2 and established Agency procedures.

      g. 	Sensitive Information
	
	This information collection does not require submission of any sensitive information. No personal or private information such as social security numbers, health care, credit card numbers, education or financial information will be collected in this collection. 

4.	The Respondents and the Information Requested

	a.	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 (325199/2869), chemical and allied products merchant wholesalers (424690/5169), 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 information collection. 
      
   * Producers of renewable fuels and renewable electricity
   * Importers of renewable fuels
   * Feedstock producers from waste treatment plants
   * Feedstock producers from landfills
   * Parties who own RIN's (including foreign RIN owners)
      
      b. 	Information Requested
      
	i. Reporting: For new pathway registration and renewable electricity and fuels produced from biogas that qualify as renewable fuel and that are registered for RIN generation, producers must submit the following additional information as part of their existing quarterly and annual reporting obligations (reported amounts should be provided as monthly summaries on an annual/calendar year basis, and must be obtained from a utility meter that is continuously measured):

   * Actual total amount of electricity used at the facility 
   * Actual total amount of electricity purchased for the facility
   * Actual amount of total renewable electricity produced on-site, including source of energy and the equipment or process used to generate the renewable electricity
   * Calculation that verifies the facility meets the specified 20 percent minimum electricity production requirement based on the reported total amount of electricity used at the facility, total amount of fossil-fuel based electricity purchased, and total amount of renewable electricity produced.

Quarterly reports are due as follows:
 
                 Quarterly Reporting Schedule for RFS2 Program

                      Quarter Covered by Quarterly Report
                         Due Date for Quarterly Report
                                January - March
                                    May 31
                                 April - June
                                   August 31
                               July - September
                                  November 30
                              October - December
                                  February 28

        Annual reports are due on February 28 for the preceding year.
      
      ii.	Recordkeeping:  For recordkeeping purposes, producers must retain the additional information, calculations and supporting documents required for registration and reporting. The producer must also review and verify all related supporting documents such as design documents, calculations, regulatory permits, and contracts between facilities that track the raw biogas from the point of withdrawal from its source, the various injection/withdraw points into the distribution pipeline, the various production facilities, and the final step for use as transportation fuel. Respondents must keep copies of all reports filed for five years. The regulatory requirements for registration, reporting and recordkeeping as discussed in the Pathways II final rulemaking can be located in the following applicable regulatory sections: 80.1450, 80.1451 and 80.1454, respectively. 
      
 
5.	The Information Collected, Agency Activities, Collection Methodology, and Information Management

	a.	Agency Activities

   * All reports, petitions 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.
   * Reporting parties will be contacted if there is a problem with their submission or if an incomplete registration is dormant for more than a year. 

	b. 	Collection and Methodology and Management
      
 	 Collection methodology and management of the information collected is similar to the process used for other 40 CFR Part 80 fuels programs.  The information must be reported electronically via a format specified by the Administrator.  
 
 	When the submittal is received, EPA will review it for completeness. EPA may also review respondents' records as a part of its enforcement effort to ensure the accuracy and validity of the data submitted. Non-confidential data will be made available upon request.
      

	c.	Small Entity Flexibility    

	Section 211(o)(9)(A) of the Clean Air act provides an exemption from RFS requirements through 2010 for "small refineries," defined as refineries having an average aggregate daily crude oil throughput for a calendar year that does not exceed 75,000 barrels. After this initial period, the statute allows that small refineries may, on a case-by-case basis, petition the EPA for an extension of their exemption. The EPA may approve such petitions if it finds that disproportionate economic hardship exists. In the Pathways II final rule, there is an amendment to update the definition of small entity to ensure fairness within the market as it relates to extensions and exemptions.

	d.	Collection Schedule 

	Registrations of new renewable fuel pathways, Product Transfer Documents (PTDs) from feedstock (landfills and waste treatment plants) and nameplate petitions 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 once they fulfill their registration requirements.  EPA has developed two forms to help with compliance for the Pathways 2 collection.  They are as follows:

Form											EPA No.

RFS1700 - RFS2 Renewable Fuel Producers  -  Cellulosic Converted Fraction	5900-362

RFS1300 - RFS2 Renewable Fuel Producers Using Crop Residue 			5900-262	
                   as a Feedstock Report (RFS1300)

6.	Estimating the Burden and Cost of Collection  

      a.	Estimating the Respondent Universe

	We drew upon experience implementing RFS2 and previous EPA fuel programs 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 2012), with a three percent 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  -  Petroleum and Coal Products Manufacturing

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 $114 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 $228 for overhead cost for associated with this collection. There are no operating and maintenance costs associated with this collection. 
	
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 that 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. 

      This supporting statement considers all Agency costs associated with accepting new registrants and new reports associated with Pathways II, as expressed in EPA ICR Number 2520.01. Using the RFS2, and the RFG and anti-dumping ICR, and other recent fuels-related ICRs as a guide in developing these initial estimates for RFS, we anticipate that the Pathways II and other rule amendments may require the equivalent labor of one full time GS-13 technical employees for a total of $185,000, and labor costs of $88,000 in the clerical category and $31,000 in the management category.  Since we are using the CDX, some costs incurred by the Agency will be tied to the number of registrants who send us reports. Adding the following values results in an annual estimated Agency burden as follows:
      
      One GS-13 technical employee (full time) = 		$   185,000
      One GS-7 clerical worker (full-time) 	 = 	                   88,000
      One GS-15 manager (1/8 time) = 		       	       31,000
      TOTAL=					                  304,000
      
      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 information collection.   
	  
d.	Estimating the Respondent Universe

      For biogas and electricity feedstock producers from waste treatment plants and landfills, we have assumed the following classes of regulated parties, with the number of each in parenthesis:
      
         * Waste water treatment plants biogas feedstock producers (6)  
         * Landfill biogas feedstock producers (54) 
         
      [Note:  The above estimates are derived from the following sources: 
      
       1) Landfills: Municipal Solid Waste (MSW) in the United States: 2011 Facts and Figures, available at http://www.epa.gov/cleanenergy/energy-and-you/affect/municipal-sw.html . The number of MSW facilities reported producing electricity in the United States is 87 facilities but over 3,091 operable landfills that can supply feedstock for electricity in the United States.
      http://www.zerowasteamerica.org/landfills.htm. 
      
       2) The U.S. Department of Energy, Federal Energy Management Program, Biomass and Alternative Methane Fuels (BAMF), Super ESPC Program Fact Sheet found at web site https://www1.eere.energy.gov/femp/news/news_detail.html?news_id=8961, stated that there are 16,000 waste water treatment plants in the United States and less than 2% of these facilities, mostly the large ones will participate in capturing waste water digester gas to produce electricity.] 
      
      For the purpose of deriving industry burden cost, we will be assuming that 54 landfill biogas feed stock producers will be subject to the recordkeeping and reporting burden under this ICR. These numbers were taken from the Waste-to-Energy Program, U.S. EPA Office of Resource Conservation and Recovery. We are also assuming .04 percent or six waste water digester treatment plants will be subject to the recordkeeping and reporting burden. Less than two percent of the 16,000 waste water digesters facilities stated by the U.S. Department of Energy was used to produce this number. The six waste water digester treatment plants and 54 landfill biogas will be known as feedstock producers who will generate RIN's under the new requirements in the Pathways II regulation. 
      
	This supporting statement includes reporting estimates involving biogas feedstock at landfill and wastewater treatment plants. These parties must provide certain information about their feedstock to biofuel producers and to EPA upon request. The biofuel producers are required to obtain product transfer documents from biogas feedstock producers who supply energy feedstock for them. The biofuels producer is the entity who will be generating RIN's for the final electricity used in commerce. Biofuels producers must provide certain information about their feedstock to EPA upon request. Tables' I-IV below provide the cost estimates associated with this ICR. 
      	

 

e.	Bottom Line Burden Hours and Costs

	From the tables, we estimate the following annual totals:

TOTAL NO. OF RESPONDENTS:			60
TOTAL NO. OF RESPONSES:			28,301
TOTAL BURDEN HOURS:				8,889
TOTAL COST TO RESPONDENTS:	       	$1,081,415

f.	Reason for Change in Burden

	There is no previous ICR for this collection.

g.	Burden Statement

	The annual reporting and recordkeeping burden for this collection of information is estimated to be .31 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-2012-0401, 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 William Jefferson Clinton 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-2012-0401. 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-2012-0401 and OMB Control Number 2060-NEW in any correspondence.
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