Document ID: EPA-HQ-OAR-2006-0895-0005
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2010-06-29T04:00Z

SEQ CHAPTER \h \r 1 Supporting Statement

For

Information Collection Request

Engine Emission Defect Information Reports and

Voluntary Emission Recall Reports (Renewal)

ICR Number 282.15

OMB Number 2060-0048

42 USC 7521 § 206

42 USC 7521 § 213(d)

40 CFR Part 85

40 CFR Part 89

40 CFR Part 90

40 CFR Part 91

40 CFR Part 92

40 CFR Part 94

40 CFR Part 1048

40 CFR Part 1051

40 CFR Part 1068

June 2010

Certification and Compliance Division

Office of Transportation and Air Quality

Office of Air and Radiation

U.S. Environmental Protection Agency

1.	Identification of the Information Collection

1(a) 	Title and Number of The Information Collection

Engine Emission Defect Information Reports and Voluntary Emission Recall
Reports (Renewal).  EPA Number 0282.15, OMB Control Number:  2060-0048.

1(b) 	Short Characterization/Abstract

  SEQ CHAPTER \h \r 1 Under Section 206(a) of the CAA (42 USC 7521),
engine manufacturers may not legally introduce their products into US
commerce unless EPA has certified that their production complies with
applicable emission standards.  Section 213(d) extends all emission
certification and compliance provisions to non-road engines and
vehicles.  During the certification process, manufacturers must
demonstrate that their products comply with applicable emissions
standards throughout their useful lives.  However, EPA's own in-use
testing has shown that some engines exceed the emissions standards
during their useful lives for a variety of reasons.  Those reasons
include defects in materials or design or other factors.  

	Per sections 207(c)(1) and 213 of the Clean Air Act (CAA), when
emission testing shows that a substantial number of properly maintained
and used engines produced by a manufacturer do not conform to emission
standards, the manufacturer is required to recall the engines.  When
manufacturers learn of the existence of emission-related defects in 25
engines or more (10 in the case of locomotives) of the same class and
model year, they are required to submit a Defect Information Report
(DIR).  DIRs contain information about the engines on which a defect has
been found and a description of the defect and its effects on engine
performance and emissions.  EPA uses these reports to target potentially
nonconforming classes of engines for future testing, to monitor
compliance with applicable regulations and to order a recall, if
necessary.  

	Manufacturers can also initiate a recall voluntarily by submitting a
Voluntary Emission Recall Report (VERR).  VERRs contain information such
as the procedures used by manufacturers to notify engine owners, the
identification of engines affected, and repairs to be completed on
recalled engines.  Manufacturers also submit progress reports that track
the number of engines repaired.  VERRs and VERR updates allow EPA to
determine whether the manufacturer conducting the recall is acting in
accordance with the CAA and to examine and monitor the effectiveness of
the recall campaign.   

	This information is collected by the Heavy-duty and Nonroad Engine
Group (HDNEG), Certification and Innovative Solutions Division (CISD),
Office of Transportation and Air Quality (OTAQ), Office of Air and
Radiation (OAR), U.S. Environmental Protection Agency (EPA).  Besides
CCD, this information could be used by the Office of Enforcement and
Compliance and the Department of Justice for enforcement purposes. 
Non-confidential portions of the information submitted to EPA could be
disclosed to the public upon request.  This information is used by trade
associations, environmental groups, and the public.  Respondents may
submit this information in an electronic format and EPG stores it in a
database.  

	EPA estimates that approximately 75 engine manufacturers will respond
to this collection with an approximate cost of $2,293,648.

2.	Need For and Use of the Collection

2(a) 	Need/Authority for The Collection

  SEQ CHAPTER \h \r 1 EPA's emission compliance programs,
including-emissions related recalls, are statutorily mandated; the
agency does not have discretion to cease these functions.  Sections
207(c)(1) and 213 of the Clean Air Act (CAA) mandate engine
manufacturers to conduct recalls when in-use emission testing shows that
a substantial number of properly maintained and used engines of the same
class or engine family do not conform to emission standards.

	Section 208(a) of the Clean Air Act provides EPA with the authority to
require a manufacturer to "make reports and provide information the
Administrator may reasonably require to determine whether the
manufacturer or other person has acted or is acting in compliance" with
Title II of the Clean Air Act and applicable regulations.  Regulations
implementing such reporting requirements are codified at:

40 CFR part 85, subpart T (On-highway, Heavy-duty Truck Engines)

40 CFR part 89, subpart I (Non-road Compression-ignition Engines)

40 CFR part 90, subpart I (Non-road Spark-ignition Engines)

40 CFR part 91, subpart J (Marine Spark-ignition Engines)

40 CFR part 92, subpart E (Locomotives and Locomotive Engines)

40 CFR Part 94, subpart E (Marine Compression-ignition Engines)

40 CFR Part 1068, subpart F (General provisions for engines certified
under:

Part 1033 – Locomotives

Part 1039 - Non-road Compression-ignition Engines

Part 1042 - Marine Compression-ignition Engines

Part 1045 - Marine Spark-ignition Engines

Part 1048 – Large Spark-ignition Engines

Part 1051 – Recreational Vehicles (Snowmobiles and All Terrain
Vehicles only)

Part 1054 - Non-road Spark-ignition Engines

Stationary engines certified under Parts 1039, 1048 and 1054)

	The information collected under this information collection request is
needed to identify potentially noncomplying engines.  Those engines are
then targeted for future testing to ensure that they comply with
emission standards throughout their useful lives

2(b) 	Practical Utility/Users of The Data

  SEQ CHAPTER \h \r 1 EPA uses the information requested to ensure
compliance with the Clean Air Act's in-use emission requirements.  This
information collection enables EPA to ensure that engine manufacturers
are complying with applicable in-use emission regulations, measure the
impact of non-road engines' emissions on air quality, and take
corrective actions as needed.		

	DIRs notify EPA of the existence of defects in a significant number of
engines that may cause engine emissions to exceed applicable standards. 
These reports enable the Agency to take action, as needed.  VERRs are
used to determine if a manufacturer is acting in accordance with the
Clean Air Act and to examine and monitor the effectiveness of the recall
campaign.  Measures of effectiveness include the procedures the
manufacturer is following to notify vehicle owners and provide timely
repairs, the percentage of vehicle owners that are responding to recall
notification and the number of engines that are being repaired.  

	The information will be received and used by HDNEG/CISD/OTAQ/OAR. 
Non-confidential portions of the information submitted to EPG is
available to and used by importers, environmental groups, members of the
public and local, state and federal government organizations.

3. 	Non-duplication, Consultations, and Other Collection Criteria

3(a) 	Non-duplication

  SEQ CHAPTER \h \r 1 The information requested under this ICR is
required by statute.  Because of its specialized nature, the information
collected is not available from any other source.

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

  SEQ CHAPTER \h \r 1 An announcement of the public comment period for
this ICR renewal was published in the Federal Register on April 30, 2010
(75 Federal Register 22776).  No comments have been received.  

3(c) 	Consultations

In updating this information collection request, EPA consulted
manufacturers of on-road and nonroad engines.  The consultations with
the manufacturers' representatives sought to clarify burden estimates,
employee mix in the responses, and the clarity of the requirements
associated with this ICR.  EPA consulted the following respondents:

Del R. Nelson, Project Engineer Emissions

Arctic Cat, Inc.

601 Brooks Ave. South

Thief River Falls, MN 56701

phone: 218-681-9799 (ext. 4121)

  HYPERLINK "mailto:dnelson@arcticcatinc.com"  dnelson@arcticcatinc.com 

Jean-Michel Desaulniers

Bombardier Recreational Products, Inc.

726, rue Saint-Joseph

Valcourt, Quebec Canada J0E 2L0

Phone: 450-532-6188

  HYPERLINK "mailto:jean-michel.desaulniers@brp.com" 
jean-michel.desaulniers@brp.com 

Larry Keller

Polaris Industries, Inc.

2100 Highway 55

Medina, MN  55340

Phone: 651-408-7253

  HYPERLINK "mailto:larry.keller@polarisind.com" 
larry.keller@polarisind.com 

Ravinder Singh

Cummins Inc.

500 Jackson St.

Columbus, IN  47201

Phone:  284-576-5504

ravinder.d.singh@cummins.com

3(d) 	Effects of Less Frequent Collection

This information is only collected when certain circumstances which
potentially involve non-compliance with statutory and regulatory
requirements trigger these events.  Thus, manufacturers are required to
provide this information only when potential violations exist.  Less
frequent collection of DIRs and VERRs would allow potential violations
to go undetected.  Follow-up progress reports on voluntary recalls are
collected quarterly for up to six quarters.  These progress reports or
updates are used to monitor the progress of a recall campaign, observing
the promptness with which engines subject to the recall receive the
remedial repair.  Experience has shown that the quarterly reporting
interval, which corresponds to most manufacturers’ internal cycles, is
generally the minimum interval for effective oversight of a recall
campaign.

3(e) 	General Guidelines

DIRs and VERRs are required by regulation to be submitted not more than
15 days after an emissions-related defect is found (or in the case of a
VERR, within 15 days after vehicle owner notification) to affect 25 or
more engines (10 for locomotives) of the same model year or engine
family.  If information necessary to complete the written report is not
available to the respondent within 15 days, the respondent may submit
the missing information when it becomes available.  

Applicable regulations do not require respondents to submit information
more frequently than on a quarterly basis on a per defect basis. 
Respondents must report defects within 15 days after becoming aware of
them.  A respondent may become aware of additional defects shortly after
having submitted a report. This new defect will have its own timeline.

This collection also requires manufacturers to retain records on defects
for five years from the date of manufacture of the vehicle.

3(f) 	Confidentiality

Any claimed confidential business information that meets the criteria
set forth by 5 U.S.C. §552 and 40 CFR Part 2 will be treated as such.

3(g) 	Sensitive Questions

No questions of a sensitive nature are asked.

4.	The Respondents and the Information Requested

4(a) 	Respondents/NAICS Codes

  SEQ CHAPTER \h \r 1 Respondents are manufacturers of non-road engines
within the following North American Industry Classification System
(NAICS) codes:

●	333618 Other Engine Equipment Manufacturing

●	336312 Gasoline Engine and Engine Parts Manufacturing

4(b) 	Information Requested

  SEQ CHAPTER \h \r 1 (i)	Data Items  

	Subsections A through E below list most of the data items requested
under this information collection.  Some of these data items are
required to be kept in records and submitted only upon request.	The
lists in these sections are meant to give an idea of what is usually
requested.  For a complete list of all data items applicable for each
type of engine, please refer to the regulations listed in Section 2(a). 

A.	Defect Information Reports (DIRs)

	Manufacturers are required to submit defect information reports only
when their data indicates that an emission-related defect may exist in a
substantial number of properly maintain engines.  The term
“substantial number” has different definitions in some of the
regulations covered by this collection; however, the majority of the
regulations define this term as 25 engines or more (10 for locomotives).
 Part 1068 establish thresholds based on projected sales (40 CFR
1068,501(e)).  

Manufacturers must report within 15 working days (21 days for engines
subject to Part 1068) after a defect is found in a substantial number of
engines.  These requirements apply only to engines which have already
been sold to the public and remain in effect for five years after the
model year in which the engine was certified. For engines subject to
Part 1068, the requirements apply for the entire useful life of the
engine or five years after the end of the model year, whichever is
longer [40 CFR 1068.501(b)(4)]. 

Data items requested in Defect Information Reports include:

The manufacturer's corporate name

A description of the defect

A description of the class or category of engines

Number of vehicle or engines estimated or known to have the defect and
explanation of derivation.

The address of the plant(s) where they were produced

Evaluation of the emissions impact and any driveability problems it
might cause

Available emissions data related to the defect

Indication of any anticipated manufacturer follow-up

B.	  SEQ CHAPTER \h \r 1 Voluntary Emission Recall Reports (VERRs)

	Manufacturers have the option to voluntarily initiate a recall.  If the
recall involves 25 engines or more (one for locomotives), they must
notify EPA about the recall within 15 days of the date they first
started to notify engine owners about the recall.

Information items requested in Voluntary Emission Recall Reports
include:

A description of the class or category of engines being recalled 

A description of the modifications or repairs made to correct the
defects

A description of the method being used to identify and contact the
owners

A description of any conditions for eligibility for repair and any
reasons for the conditions

A description of the procedure to be followed by the owner to obtain
repairs and where the repairs can be obtained

If repairs are not being performed at dealers, a description of who will
perform the repairs and where  the defect will be remedied

Copies of the letters of notification to be sent to the vehicle owners

A description of the system for assuring an adequate supply of parts is
available for the repairs and that they are performed in a timely
manner.

Copies of all necessary instructions to be sent to the persons who are
to perform the repairs

A description of the impact of the proposed changes on fuel consumption,
driveability, and safety of the engines 

A sample of any labels to be applied to the participant engines
identifying the recall being performed

C.	VERR Progress Reports

	

	VERR Quarterly Progress Reports document the progress of voluntary
recalls.  Manufacturers of on-highway, heavy-duty truck engines,
non-road compression ignition engines and locomotives are required to
submit VERR quarterly reports for six quarters following the beginning
of any recall campaign (40 CFR 85.1904(b) and 40 CFR 92.404(b)).  These
reports must be submitted no later than 25 working days after the end of
each calendar quarter.

	Manufacturers of non-road spark-ignition engines need to submit only
one report within 18 months of the start of owner notification (40 CFR
90.804(b)).  Marine engine manufacturers need to submit a report one
year from the start of owner notification (40 CFR 90.804(b)). Other
variations may exist among the different categories of engines.

Data items include:

Recall campaign number

Date of owner notification and completion

Number of engines involved

Number of engines known or estimated to be affected by the defect

Number of or engines brought in and inspected as part of the campaign

Number of engines found to have the defect after inspection

Number of engines actually receiving repair

Number of engines determined to be unavailable due to exportation,
theft, scrapping or other reasons

Number of engines determined to be ineligible because of improper
maintenance or use

Copies of any service bulletins sent to dealers which relate to the
defect that had not previously been reported

Copies of all communications transmitted to vehicle owners which relate
to the defect to be corrected not previously submitted

Revisions to any of the information previously submitted

Vehicle owner contact information upon request

For non-road and marine spark-ignition engines only:

Methods used to notify owners and dealers

Number of engines known or estimated to be affected

Number of engines actually being repaired

Number of owners and dealers involved

Number of engines determined to be ineligible because of improper
maintenance or use

D.	Recordkeeping Requirements

	Manufacturers are required to keep records of all the data gathered to
compile the reports for at least five years (40 CFR parts 85.1906(b),
90.805(b), and 91.905(b)). Recalls related to recalls under Part 1068
must be kept for at least three years after that last required report
was submitted (40 CFR 1068.530).  Locomotive and locomotive engine
manufacturers under Part 92 however, must keep these records for eight
years (40 CFR 92.406(b)).  Manufacturers are required to make all
records available to EPA upon request (40 CFR Parts 85.1906(b),
90.805(b), 91.905(b), and 92.406(b)).

	The following information must also be maintained in a form suitable
for inspection, such as electronic storage devices or databases:

The names and addresses of vehicle or engine owners:

To whom notification was given

Who received remedial repair or inspection

Who was determined not to be  eligible because of improper maintenance
or use

  SEQ CHAPTER \h \r 1 (ii)	Respondent Activities

 

	The activities manufacturers need to perform to comply with the
requirements of each type of report are as follows:

Monitor engine performance by collecting information on the frequency of
customer or dealer complaints and findings by their own research
departments (customary business practice)

Review instructions and regulations

Compile data

Prepare and submit report

Maintain records

  SEQ CHAPTER \h \r 1 5.	The Information Collected -- Agency Activities,
Collection Methodology, and Information Management

  SEQ CHAPTER \h \r 1 5(a)	Agency Activities

	  SEQ CHAPTER \h \r 1 EPA officials carry out the following activities:

Review regulations

Answer respondents' questions

Review reports for completeness and compliance with regulations

Analyze reports to determine the impact of the situation described in
the report on emission levels

Evaluate manufacturers' procedures to determine if the problem is being
addressed correctly and how effective a recall campaign is

Recommend, if needed, additional compliance activities such as further
testing or research

Identify engine classes that may need follow up in the future

Summarize and store the information electronically

5(b)	Collection Methodology and Management

	EPA currently makes extensive use of electronic media in gathering and
evaluating information; therefore, EPA prefers to receive the reports
electronically.  However, it is the manufacturers' choice to submit
their reports on paper if they so prefer.

	Once the data is received, the information is entered into a database
and reviewed for completeness.  If the manufacturer chooses to make hard
copy submittals, then EPA manually enters the information into the
database.  The reviewer analyses the information to ensure compliance
with the CAA and applicable regulations.  

5(c)	Small Entity Flexibility

	The information requested is considered to be the minimum needed to
effectively maintain the emission control programs' integrity and comply
with the requirements of the Clean Air Act.  Further measures to
simplify reporting requirements for small businesses do not appear
prudent or necessary.

5(d)	Collection Schedule

	DIRs are collected on occasion only.  If the defect requires a recall,
a reporting scheduled is triggered.  Sections 4(b)(i)(A) through
4(b)(i)(D) describe the schedule.

  SEQ CHAPTER \h \r 1 6.	Estimating the Burden and Cost of the
Collection

	  SEQ CHAPTER \h \r 1 Please refer to Table 1 in the attachment for
details.

  SEQ CHAPTER \h \r 1 6(a)	Estimating Respondent Burden

  SEQ CHAPTER \h \r 1 Burden estimates were taken from the previous ICR
and revised to reflect experience gained by EPA and comments from fewer
than 10 respondents consulted by EPA.  

  SEQ CHAPTER \h \r 1 6(b) 	Estimating Respondent Costs

(i)	Estimating Labor Costs

  SEQ CHAPTER \h \r 1 To estimate labor costs, EPA used the Bureau of
Labor Statistics' publication Occupational Employment and Wages, 2008. 
EPA then increased the hourly wage estimates by a factor of 2.1 to
account for benefits and overhead.  The specific rates used are listed
below.  These are mean hourly rates.

  SEQ CHAPTER \h \r 1 Table 2

Labor Costs Estimates

Occupation	SOC Code Number	Mean Hourly Rate (BLS)	2.1 Factor for
Overhead and Benefits

Mechanical  Engineers	17-2141	$38.74 	$81.35 

Engineering Managers	 11-9041	$59.04 	$123.98 

Lawyers	23-1011	$62.03	$130.26 

Secretaries, Except Legal, Medical and Executive	43-6014	$14.93 	$31.35 

  SEQ CHAPTER \h \r 1 (ii) 	Estimating Capital and Operations and
Maintenance Costs

Operation and Maintenance costs (O&M Costs) associated with this
information collection include CDs, photocopying, postage and other
shipping expenses and phone calls.  CDs are used by manufacturers to
submit data electronically and to keep records.

There are no capital start-up costs associated with this collection.

(iii)	Capital/Start Up Operations and Maintenance Costs

There are no capital start-up costs associated with the renewal of this
ICR.

(iv)	Annualizing capital costs

There are no capital start-up costs associated with this information
collection. 

  SEQ CHAPTER \h \r 1 6(c) 	Estimating Agency Burden  

	  SEQ CHAPTER \h \r 1 Please refer to Table 3 in the attachment for
detailed calculations.

  SEQ CHAPTER \h \r 1 Table 4 below summarizes EPA's labor costs
associated with this information collection.  These costs are based on
hourly wage rates obtained from the Office of Personnel Management (OPM)
and adjusted by a factor of 1.6 to account for benefits and overhead.

Table 4

Agency Labor Costs

Occupation	Hourly Rate	1.6 Federal Factor for Benefits and Overhead

Engineer (GS-13/10)	$55.46	$88.73

Lawyers (GS-13/10)	$55.46	$88.73

Contractors (amount spent in FY 2009) – Defect and Recall Reports
Processing	

$41,330

Due to a shortage of personnel, EPA contracts out the processing of DIRs
and VERRs. The Contractor answers questions from manufacturers regarding
how to prepare and submit reports, reviews reports for completeness,
uploads them into a database, and identifies those that need special
follow up.  EPA personnel follow up with manufacturers in matters that
require regulatory interpretation and enforce the requirements, as
needed.

  SEQ CHAPTER \h \r 1 6(d)	Estimating the Respondent Universe and Total
Burden and 	Costs

There are approximately 338 engine manufacturers (respondents) who
obtain certificates of conformity with EPA emission regulations.  All of
them need to comply with defect and recall regulations.  Manufacturers
need to submit DIRs only when they learn that a significant number of
properly maintain engines are affected by a particular defect.
Therefore, not all manufacturers will respond to this collection every
year.

Based on previous experience,   SEQ CHAPTER \h \r 1 EPA expects to
receive approximately 225 DIRs from 75 different respondents per year
during the next three years. This is a significant increase from
previous response levels.  This increase is mainly due to two factors:
(1) the pool of possible respondents has significantly increased in the
last few years; and (2) EPA has noted that not all manufacturers are
aware of their responsibilities to report and cure defects found in
their products.  To address this issue, EPA plans to step up efforts to
verify compliance with defect reporting and recall regulations.  This
should result in a higher number of respondents to this information
collection.

  SEQ CHAPTER \h \r 1 6(e) 	Bottom Line Burden Hours and Cost Tables

(i)	  SEQ CHAPTER \h \r 1 Respondent Tally

Number of Respondents:  75

Number of Activities:  13

Total Hours per Year:  26,563

Total Labor Cost per Year:  $2,276,608

Total  Capital Costs per Year:  0

Total O&M Costs per Year:  $17,040

Total Costs:  $2,293,648

 (ii)	  SEQ CHAPTER \h \r 1 The Agency Tally

Number of Respondents:  75

Number of Activities:  12

Total Hours per Year:  1,858

Total Labor Cost per Year:  $44,126.36

Total  Capital Costs per Year:  0

Total O&M Costs per Year:  $637 in addition to $41,330 in contract
dollars

Total Costs:  $86,093

  SEQ CHAPTER \h \r 1 6(f) 	Reasons for change in burden

	There is an increase in burden associated with this ICR renewal due to:
(1) a significant increase in the estimated number of respondents; and
(2) an increase in estimated frequency.  This increases are due
adjustments EPA has made to its estimates.

  SEQ CHAPTER \h \r 1 6(g) 	Burden Statement

  SEQ CHAPTER \h \r 1 The annual public reporting and recordkeeping
burden for this collection is estimated to average 354 hours per
respondent.  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-2006-0895.  The Docket public reading room is located in the
EPA Docket Center, Room 3334 in the EPA West Building, located at 1301
Constitution Ave., NW, Washington, D.C. The Docket is open to the public
on all federal government work days from 8:30 A.M. to 4:30 P.M.   An
electronic version of the public docket is available through EPA Dockets
(EDOCKET) at http://www.epa.gov/edocket.  Use EDOCKET 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 No.
EPA-HQ-OAR-2006-0895 and OMB control number (2060-0048) in any
correspondence.

ICR #0282.15 Supporting Statement

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