Document ID: EPA-HQ-OAR-2016-0027-0025
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2023-07-31T04:00Z

Supporting Statement
for
Information Collection Request

     On-Highway Motorcycle Certification and Compliance Program (Renewal)
                            EPA ICR Number 2535.03
                                       
                                       
                                       
                                       
                                 June 28, 2023
                                       
                              Compliance Division
                   Office of Transportation and Air Quality
                          Office of Air and Radiation
                     U.S. Environmental Protection Agency
                                       

                      Part A of the Supporting Statement

Section 1: Identification of the Information Collection
1(a) Title and Number of the Information Collection
"Information Collection Request (ICR) for On-Highway Motorcycle (HMC) Certification and Compliance Program (Renewal)"; The Environmental Protection Agency (EPA) tracking number for this information collection request (ICR) is Number 2535.03. The Office of Management and budget (OMB) Control Number is 2060-0710. The Office of Management and budget (OMB) Control Number is 2060-0710

1(b) Short Characterization/Abstract

Under the Clean Air Act (42 U.S.C. 7521 et seq.) manufacturers and importers of on-highway motorcycles must have a certificate of conformity issued by the EPA covering any vehicle they intend to offer for sale in the United States. A certificate of conformity represents to the prospective purchaser that the respective vehicle conforms to all applicable emissions requirements. In issuing a certificate of conformity, the EPA reviews vehicle information and emissions test data to determine if the required testing has been performed by the certificate applicant and the required emissions levels have been demonstrated. After a certificate of conformity has been issued, the Agency may request additional information to verify that the product continues to meet its certified emissions standards throughout its useful life. 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 the EPA's regulations in Title 40 of Code of Federal Regulations (CFR) are listed in 40 CFR part 9. 

The previous ICR authorization was based on an estimated 70 respondents for 5453 hours and $1,188,628.31 in costs, including $18,680 in operation and maintenance costs, $ $42,664.00 in capital and startup costs, and $988,626.31 in labor costs. 

The HMC program was previously included under the current ICR for On-Highway Motorcycle Certification and Compliance Program [EPA ICR No. 2535.02, OMB Control No. 2060-0710]. The burdens under this HMC ICR covers the application for a certificate of conformity (and supporting test results) submitted by HMC certification applicants prior to introduction into US commerce as well as various reports and information during and after production, including the defect information report (DR) and voluntary emissions recall report (VERR) that covers HMCs. The EPA's processing of this information is conducted by the Compliance Division, Office of Transportation and Air Quality, Office of Air and Radiation, US EPA. There are no additional aspects of the on-highway motorcycle program that have been added to the program since the 2019 previous ICR. However, the EPA has developed several templates that manufacturers may use to meet their reporting obligations and made improvements to our compliance information system for which we request feedback from the reporting community. 

Information collected for the purposes listed above consists of descriptions of on-highway motorcycles (with emphasis on emission control systems), test results, defect and recall reports, and sales information. These data are reviewed to verify that the necessary tests have been performed and the manufacturer's product line meets emission standards. 

All reporting covered by this ICR can now be entered and submitted electronically via the EPA's web-based Engines and Vehicles Compliance Information System, EV-CIS. Subject to confidentiality claims, this information is made available to interested parties upon request. Emission test information and some recall notifications is available on the internet.

The burdens in this ICR are based on experience administering the program from January 1, 2019, through December 31, 2022. There are approximately 95 motorcycle manufacturers currently submitting applications each year to certify their products. This increase from the previous ICR constitutes the addition of electric motorcycle manufacturers, who still must offer an application to and certify with the EPA. In addition to the inclusion of electric motorcycle manufacturers in our compilation of affected parties, the other main changes from the previous ICR authorization are the following: updating the agency burden estimate, labor costs, and the number of respondents and responses. The current request estimates 95 respondents for 367 annual hours per respondent, an estimated total cost of about $1,124,869 for all combined regulated industry respondents: $342,565 in operation and maintenance costs, $31,998 in annual capital and startup costs, and $750,306 in labor costs.

Additional details on the coverage of this ICR are given in Section 2(b), below.

Section 2: Need For and Use of the Collection 

2(a) Need/Authority for the Collection 

Under Title II of the Clean Air Act (42 U.S.C. 7521 et seq.), the EPA is charged with issuing certificates of conformity for motor vehicle designs that comply with applicable emission standards set under section 202(a)(1) of the Act, such as those for Carbon Monoxide (CO), Hydrocarbons (HC) and Oxides of Nitrogen (NOx). (This authority was clarified in the Supreme Court's decision State of Massachusetts v. EPA, 127 S. Ct. 1438 (2007)). Section 202(a)(1) states that "the Administrator shall by regulation prescribe (and from time-to-time revise) [...] standards applicable to the emission of any air pollutant from any class or classes of new motor vehicles [...], which in his judgment cause, or contribute to, air pollution which may reasonably be anticipated to endanger public health or welfare." Under Section 206(a) of the Clean Air Act (42 U.S.C. 7525) "... The Administrator shall test ... any new motor vehicle ... submitted by a manufacturer ... If such vehicle ... conforms ... the Administrator shall issue a certificate of conformity."  While the EPA has delegated a substantial portion of the process of calculating and reporting emissions and fuel economy results to the manufacturers, the test results upon which labels are based are subject to EPA confirmatory testing. Such confirmation testing makes sure that results from different manufacturers can be accurately used for comparison. 

Relevant portions of the above statutes can be found online at https://www.epa.gov/clean-air-act-overview/title-ii-emission-standards-moving-sources. The regulations dealing with on-highway motorcycle emission control can be found in 40 CFR Parts 85 and 86. These regulations are not attached to this statement due to their length and technical nature but may also be found on-line at www.ecfr.gov.

2(b) Practical Utility/Users of the Data

The discussion in this section outlines the major features of the program covered by this ICR as well as summarizing some of the recent historical and ongoing developments that have a bearing on the information burden.

Highway Motorcycles Certification and Compliance

Federal standards for HMCs have been in effect since the 1978 model year. On January 15, 2004, the EPA finalized the first revision to these standards, as well as included, for the first time, engines with displacements of less than 50cc and added new standards that require the use of low permeability fuel tanks and fuel hoses. These provisions were effective from the 2006 model year. Manufacturers group vehicles/engines into engine families, conduct emissions tests to demonstrate compliance with exhaust emissions standards, calculate durability factors for useful-life compliance, and submit an application for certification along with an application fee. The EPA issues a certificate, possibly after confirmatory testing. Manufacturers may be subject to production vehicle testing for EPA in-use compliance investigations (40 CFR 86.415-78). 

Defect Reports and Voluntary Emissions Recall Reports

Manufacturers may also be subject to a reporting component in the on-highway motorcycle program, which may require manufacturers to file a defect report(s), voluntary emissions recall report(s), and voluntary recall quarterly reports by manufacturers for in-use vehicles. Manufacturers file these reports using templates recommended by the EPA to streamline the reporting process and either mail or email these forms to the EPA.  The reporting and record keeping burden estimates are included in this ICR.

 Investigation into Possible Noncompliance of HMCs

The HMC emissions compliance program includes pre-production, production, and in-use components. HMCs are evaluated as prototypes prior to production and those designs that meet applicable criteria are certified for introduction into commerce. The EPA also has discretion to conduct production vehicle testing. This has become an important compliance tool for the EPA. While the EPA retains the statutory and regulatory authority to conduct production tests for on-highway motorcycles no significant burden is assigned for this activity in this ICR due to the very limited nature in which this tool is used. Finally, in addition to the manufacturer voluntary recall program, the EPA will follow up on information submitted to the agency with other administrative and state agencies, such as California's Air Resources Board and Environment and Climate Control Canada, to investigate vehicle compliance. 

EV-CIS

Electronic submission by manufactures to the EPA's engine and vehicle compliance information system, known as EV-CIS, was implemented for on-highway motorcycles in 2015.  The EV-CIS system features a web interface for the submission of manufacturer certification information. The savings from this process, along with other features, including improved coordination with California's certification process and improved manufacturer capacity to self-correct submissions, are reflected in this ICR. For this reason, the reporting burden estimates associated with submitting information to the EPA in this ICR are considered to be more accurate than our previous ICR estimates. Feedback from the highway motorcycle manufacturers questioned for this ICR regarding our EV-CIS system continues to be largely positive.

Averaging Program for HC+NOx

To provide flexibility in meeting the on-highway motorcycle emissions standards, we adopted an emission credit program that provided an early incentive for HMC manufacturers to bank credits for use in future model years while retaining the ability to average emissions across engine families. Under the averaging program, manufacturers are able to balance the certified emissions of their motorcycles so that the sales-weighted emissions level meets the applicable standard. This means that some engine families may have emissions below the standards while others have emissions higher than the standards. For enforcement purposes, manufacturers are required to specify a certification limit, or ``Family Emission Limit'' (FEL), for each engine family. The FEL is the emission level that a particular engine family is certified as meeting and, in effect, becomes the standard for the individual family. The FEL may be above or below the applicable standard as long as the manufacturer's sales-weighted emissions average meets the applicable standard. Manufacturers participating in the averaging program (promulgated under 40 CFR 86.449), must certify each participating family to an FEL in its application for certification. In its application, participants must also project an average emission level for all families participating in the program. At the end of the model year, each participant must submit an end-of-year report accounting for the actual production volume, calculated to final average to demonstrate compliance with the standard. This report must be received by the EPA within 120 days of the end of the model year. This reporting requirement is a necessary component of the averaging program.

Section 3: Non-duplication, Consultations, and Other Collection Criteria 

3(a) Non-duplication

Efforts have been made to eliminate duplication in this information collection. As mentioned above, the EPA's implementation of the EV-CIS system, under which the manufacturer submission process occurs, should further help minimize duplication in submissions. 

Because of the specialized nature of HMC manufacturing and the fact that product plans and emission performance information may be submitted to the EPA prior to the introduction of production vehicles into US commerce, this information is not available from any source other than the manufacturer. Therefore, this information is not likely to be collected by any other governmental agency for this or related purposes.
 
3(b) Public Notice 

EPA will solicit public comment by means of a Federal Register Notice.  

3(c) Consultations

In preparing this ICR submission, the EPA has consulted with the following individuals working in the regulated industries:

	
Name  
Firm
Telephone
Margaret Goldstein
margaret@harrisonwolf.com
Harrison Wolf
714-841-6400
Matthew K Johnson 
matthew_k_johnson@na.honda.com
Honda
(562) 900-3765
Luis Hernandez 
Luis.Hernandez@suz.com
Suzuki
(714) 996-7040
Bollinger, Scott 
Scott.Bollinger@harley-davidson.com
Harley Davidson
(414) 465-6050

These individuals have experience with the reporting aspects of the EPA's current programs. Comments received have been reflected in the burden estimates discussed below. 

3(d) Effects of Less Frequent Collection

As required by the Clean Air Act (42 USC 7525(a)), emission information is submitted on a yearly basis coinciding with the manufacturer's "model year." The EPA allows applicants to define their own "model year", within limits under the statute and regulations, thus granting some flexibility in this regard. Major product changes typically occur at the start of a model year. For these reasons, a collection frequency longer than a model year is not possible. However, when a vehicle design is unchanged for subsequent model years the regulations allow manufacturers to certify using the data generated for the preceding year's certification. The use of previous data is often referred to as data "carried over" to a subsequent model year, and as a result the amount of new information required for certification is substantially reduced. 

3(e) General Guidelines

Manufacturers are required to keep some records for periods longer than three years. This requirement stems from the statutory requirement that manufacturers warrant some items for periods longer than three years. Manufacturers must also recall vehicle classes failing to meet emission standards during their useful life, typically five to eight years depending on vehicle type. In order to satisfy these obligations, manufacturers must retain product information, with particular emphasis on the emission control systems. This information is vital in assuring that repairs and replacement parts properly function during the life of the warranty and that emissions limitations are met during the full useful life of the vehicle. The EPA believes that this recordkeeping requirement does not impose an unreasonable burden given the warranty and recall obligations in our regulations and the Act. In fact, manufacturers would probably retain this information to support their normal business of supplying replacement parts.

This information collection activity complies with the remaining guidelines in 5 CFR 1320.5.

3(f) Confidentiality

Information submitted by manufacturers is held as confidential until the specific vehicle to which it pertains is available for purchase. After vehicles are available, most information associated with the manufacturer/importer's application is available to the public. Under section 208 of the Clean Air Act (42 USC 7542(c)) all information, other than trade secret processes or methods, must be publicly available. Proprietary information is granted confidentiality in accordance with the Freedom of Information Act, EPA regulations at 40 CFR Part 2, and class determinations issued by the EPA's Office of General Counsel.

3(g) Sensitive Questions

No sensitive questions are asked in this information collection. This collection complies with the Privacy Act and OMB Circular A-108.

Section 4: Respondents and Information Requested

4(a) Respondents/NAICS Codes

The respondents are involved in the industries shown in the following table:

Category
NAICS Codes[1]
Examples of Potentially Regulated Entities
Industry
336991
Motorcycle and motorcycle parts manufacturers
Industry
336310
Motor Vehicle Gasoline Engine and Engine Parts Manufacturing
[1] North American Industry Classification System (NAICS)
 
4(b) Information Requested

(i) Data items

Manufacturers of on-highway motorcycles are required to submit descriptions of their planned product line, including detailed descriptions of the emission control system, test data, and demonstrations of compliance with other requirements, such as methods for determining deterioration factors for durability. Manufacturers supply test data to verify that their products will comply with the emission standards. They are also required to notify the EPA of in-use defects experienced by their vehicles and reports of voluntary recalls. Other major data items include submission of technical service bulletins; copies of warranties; and averaging and banking calculations. Given the diversity of vehicles produced and the complicated nature of the regulations, in certain instances manufacturers may also find it advantageous to request variances from standard EPA procedures.

(ii) Respondent Activities

While there is no "typical" respondent, all manufacturers must describe their product and supply test data and other information to verify compliance. The biggest burden in this ICR comes from the cost of test facilities and the costs and labor hours of running tests to generate the data that must be reported to the EPA. The EPA will conduct a limited number of "confirmatory tests" to monitor manufacturer results. This generally requires that emissions test vehicle(s) be shipped to the EPA's designated testing laboratory. Manufacturers must also retain records. These tasks are repeated for each model year, although typically previous data and information can be "carried over" when no significant changes have occurred. If, during the course of a model year a product change is made (an "amendment" to an application or certified configuration), the EPA must be notified. Under some circumstances additional test data may be required.

Manufacturers must also submit reports concerning defects that are discovered and voluntary recalls that are conducted; they may also be requested to submit to production vehicle testing that the EPA may elect to conduct.

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

 Agency Activities

The EPA spends a significant portion of its emission compliance activity reviewing applications to verify that the correct vehicle tests have been conducted and necessary information has been submitted by manufacturers seeking certification. Amendments to applications must also be selectively reviewed for possible emissions impacts and manufacturers' evaluations thereof. A part of this process involves determining if the use of data from a previous model year is appropriate or if new testing will be required. The EPA also selects a number of tests for confirmation at the EPA's own designated laboratory. The EPA maintains the relevant reporting systems and records and analyzes relevant data for regulatory and oversight purposes.

The EPA prepares annual reports of emission test results submitted by the manufacturers. These and other reports, data and information are now available on the EPA's website at https://www3.epa.gov/otaq/crttst.htm.

5(b) Collection Methodology and Management

All routine information (test results, vehicle descriptions, and all aspects of certification applications) is electronically transmitted directly from the manufacturers through the EV-CIS system. 

All information received by the EPA is subject to review. Data submitted electronically is in some cases automatically screened; for example, on-highway motorcycle test results that are close to the emission standard(s) are flagged for a more detailed review. Descriptions of the proposed product line are checked with EV-CIS submissions to make certain that the appropriate vehicles have been tested. (The emission program relies on a combination of "worst case" and representative data to accomplish its goals.) 

5(c) Small Entity Flexibility

The EPA has special procedures for small-volume on-highway motorcycle manufacturer certifications; i.e., those whose total sales are less than 10,000 units per year. These special procedures allow the "small-volume" manufacturer to submit a simplified application for certification with respect to vehicle durability demonstrations. These manufacturers also have reduced testing and reporting requirements. Further, by the very nature of their size, small volume manufacturers typically have very limited product lines. This characteristic both reduces the amount of information that must be submitted and also simplifies the process of selecting the correct test vehicle(s). There are also several special provisions to reduce the regulatory burden on small highway motorcycle manufacturers; in addition to hardship exemptions and extensions to meet program requirements, manufacturers with sales less than 3000 units per year and 500 employees may use broader definitions of engine categories. 

5(d) Collection Schedule

Manufacturers must submit information for each "model year" that it intends to build (or import) vehicles. Submission is by "engine family" designation. A "model year" approximates when a product is produced for sale. Engines and vehicles can be designated the next model-year if manufactured by January 2 of the preceding calendar-year. For instance, a 2019 model year engine or vehicle can be produced from January 2, 2018 through December 31, 2019. If a product is unchanged between model years, much of the information can be used (or "carried over") to the new model year application. The collection frequency and burden are determined to a large extent by the manufacturer's marketing and production plans. However, as required by law, some submission if information is required for each model year's production. 

Section 6: Estimating the Burden and Cost of the Collection

6(a) Estimating Respondent Burden 

The burden estimates below consider the HMC program described above in section 2(b). 

In agreement with this ICR, each manufacturer's activities toward certification or a related reporting or record keeping requirement is counted as a "response". As explained in support of that action, this is by far the most logical and tractable unit of activity for burden accounting.

Within the HMC program, the estimation of respondent burden hours and respondent costs essentially breaks down as testing costs, which constitute the majority of Operations and Maintenance; testing facilities costs, which constitute the majority of Startup and Capital; the labor hours to conduct the tests; and additional costs and hours associated with other reporting and recordkeeping burdens, including amendments to a certificate of conformity and compliance testing responses. In addition, some features are specific to particular programs (notably permeation testing). 

The changes in this ICR from ICR 2535.02 reflect changes in the numbers of mandatory tests performed due to estimates of the number of engine families certified and tested, rather than changes in regulation. The number of tests has been updated to reflect computer query results for model year 2020 through 2022 and additional improvements from EPA's EV-CIS system. At the time of this ICR renewal preparation, Model Year 2023 data were not yet available. 

The present burden estimate continues the process of updating based on a renewed examination of the burdens, consultations with industry, and consultations with program administrators within the EPA. 

Whereas manufacturers develop their products within the context of compliance with all the requirements of the Clean Air Act, we understand the Paperwork Reduction Act to be centrally concerned with reporting and recordkeeping burdens. Thus, we start with the burden of submitting information to the EPA and maintaining records of that information. From there we go on to consider the costs of developing the information that has to be reported. Consequently, this ICR has traditionally included the burden of conducting tests that have to be reported to support the EPA's oversight of compliance with the Clean Air Act. We take the cost of conducting the tests to include contracting the cost of testing to outside test laboratories, the capital costs of building the facilities to run the tests, if applicable, and the associated operations and maintenance costs in support of such facility(s), as well as the service mileage accumulation for durability determinations, and labor costs associated with performing all of these functions. 

Estimated Respondent Burden Hours:
Program/Activity
Engine Families/Year
Respondents/ Year
Total
hours per Respondent (Average)
Highway Motorcycles
314
95
367

6(b) Estimating Respondent Costs
 Estimating labor costs

The labor costs in this ICR reflect the May 2023 BLS National Industry-Specific Occupational Employment and Wage Estimates (https://www.bls.gov/oes/current/naics4_336100.htm). With a 130% overhead multiplier, also based on the BLS benefits adjustment factor of 30% for 2023, the categories are $104.94 manager, $71.53 Engineer, $46.23 Technologist, and $38.17 Administrative. Use of these rates represents a small change from the rates previously used for the on-highway motorcycle burden adjustment (ICR 2535.02). For example, previously we did not offer a role for the Engineer for manufacturers but now have an improved understanding that the engineer plays in designing the test procedure and review of test results. This small change further improves our ability to estimate the financial burden on manufacturers in meeting the requirements of the EPA's certification and compliance program.

We have estimated labor costs for these four categories for each labor item for certification and compliance obligations. The total labor hours for each certified engine family, as well as all reporting, record-keeping and compliance testing requirements, is 39,378. This amounts to a total of $ $2,389.51 labor cost per engine family/certificate. 

 Estimating Operations and Maintenance Costs
      
Program/Activity
Number
of Respondents
Burden/
Respondent
($)
Total
($)
Highway Motorcycles
                                                                             95
                                                                         $7,455
                                                                       $342,565

Operations and Maintenance (O&M) costs are largely those associated with running tests in a test lab; there are also small cost elements associated with other reporting and recordkeeping activities. O&M costs in this ICR are therefore highly dependent on the fluctuations in the size of the industries and do not reflect new program changes. 

O&M test costs here reflect a decrease in the number of new HMC engine families being certified that require new testing to demonstrate compliance with the standard. Many highway motorcycle manufacturers also contract with testing facilities to provide data to the EPA for certification and compliance testing. Contract costs are not allocated as an O&M cost for this ICR and appear as an annual expense requiring no additional labor expenditure by the respondent. Due to these changes in the industry as well as our method of allocating respondent expense, a change in the O&M costs comes from inclusion of testing estimates for this ICR for model year 2022. 

 Estimating Capital Costs

Annualized Capital and Startup Costs: 

Program/Activity
Number
Respondents/Year
Burden/ Response ($)
Total
($)
Highway Motorcycles
6
$5,333.00
$31,998

To perform the required testing, a combination of "environmental" (exhaust and evaporative emissions) test cells are required. In the previous ICR (2351.02), we made a significant change in our ICR by providing estimates for evaporative emissions testing, which was not fully anticipated in the previous ICR estimates. Manufacturers of highway motorcycles must demonstrate their engine families meet evaporative emissions in three ways; 1) purchase fuel tanks certified to 40 CFR 1060 from a fuel tank manufacturer meeting those requirements, 2) test your own fuel tank under the provisions of 40 CFR 1051, or 3) certify by design, demonstrating your fuel tank meets the design standards in Part 86, subpart E. Our estimates continue to reflect information from estimates of evaporative testing from commercial test facilities. 

These capital costs have long been treated as ongoing costs rather than start-up costs in the 0783 series. In effect, this allows a capital cost to be attributed on a per-test basis. Because of the wide variety of circumstances among manufacturers (land availability, capital assets, lending terms, labor shifts) and the continuing changes in the numbers of vehicles and engines being certified from year to year, this is the best method of counting facilities capital costs and one which allows continuity of treatment from one collection request to another. This also has the result, as with O&M costs, that collection requests can reflect changes in the information burden due to market forces in the industry that are much too complicated to model. The changes in this estimate from the last renewal reflect re-estimations and changes in the industry, not program changes by the EPA and we will not depart from past practice in this on-highway motorcycle ICR. 

The annualized depreciated costs of these facilities using the standard assumptions of 7% interest yearly over ten years is $5,333.00. This is regarded as a permanent capital cost item; that is, we regard the capital stock as being continuously depreciated and replaced.

6(c) Estimating Agency Burden

 The GECC administers the highway motorcycle certification and compliance programs. This group currently consists of one full-time employee in Ann Arbor, MI, and a Senior Environmental Employment (SEE) Program (for technical and administrative support) dedicated to the activities covered by this ICR. Other EPA employees from Washington, DC and Ann Arbor also provide support for these activities, such as IT personnel, agency lawyers at the Office of General Counsel and the Office of Enforcement and Compliance Activities, work assignment/contract managers, upper management, etc. Contract support is also provided for database development/maintenance as well as compliance program report processing. 
 
	The cost of the Agency burden is based on hourly wage rates that are effective as of January 2019 as obtained from the Office of Personnel Management (OPM) and adjusted by a factor of 1.6 to account for benefits and overhead. These rates are available at https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2022/DCB.pdf.  

This ICR estimates the hourly wage for an EPA employee at $98.75 with an adjustment to $158.00. Administrative support is estimated to be an hourly wage of $20.35. Therefore, the combined wage for the Agency burden would be $178.35. We are estimating 3,275 hours a year for the Agency to review applications, conduct certification and compliance testing, review amendments to applications and certificates, and collect and review records required to be submitted to the EPA. This amounts to a total Agency burden of $584,097.43 annually to administer this program. 

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

From the above discussion the following total burden and cost estimates can be calculated. Due to the diverse nature of the HMC industry, there is no typical or average respondent. Respondents can be large manufacturers with many products such as Honda Motors, or they can be small businesses with a single product line. In addition, HWC's can also be small importers of a few specialized motorcycles per year that are manufactured abroad. The total burden and cost figures below are estimates on the basis of report data from production and end-of-year reports as well as estimates from EPA personnel.

6(e) Bottom Line Burden Hours and Cost

(i)  Respondent Tally

RESPONDENTS
95
BURDEN HOURS
5832
LABOR COST
$750,306
OPERATING COST
$342,565
CAPITALIZED COST
$31,998

Previously we reported the computed hours on the basis of time obligation multiplied by the number of respondents. We estimate the total hour respondent burden to be 5832 hours annually. The increase of 379 hours is primarily attributed to a better understanding of how many manufacturers perform emissions testing in their own laboratories and how many engine families are certified by those manufacturers. The EPA now collects information on where emissions testing was performed and by what test laboratory. We now have a more robust data set to inform our estimation(s) and further assist the EPA in our compliance responsibilities. 

(ii)  Agency Tally

EMPLOYEES (3): 
$158.00
Annual LABOR Hours:
3275
Agency COST
$584,097.43

6(f) Reasons for change in burden

The change in burden since the previous ICR renewal (ICR No. 2535.02) is due to the changes in cost methodology and coverage outlined above in 6(a) combined with new counts of the numbers of tests performed including evaporative testing. The EPA has not made any program changes (other than approved rulemakings) since the previous ICR renewal. The effect of these changes can be summarized as follows:

Additional Compliance Costs
In our previous ICR's, we did not individually account for the diverse activities required to review test data, initiate and run production vehicle testing, and monitor reporting and record keeping requirements. In addition to the Agency's improved presence in certification and compliance, this ICR also recognizes the changes that have occurred in the highway motorcycle industry. EPA's compliance actions against such entities like Motor Science and Systems Launch Associates, has increased the need for all respondents to properly report production and averaging numbers as well as provide accurate certification test reports. In addition, due to the diverse nature of the highway motorcycle industry, many manufacturers are relying on contract test laboratories to conduct certification testing instead of maintaining a certification test lab to comply with EPA test requirements. That has meant a reduction in Operation and Maintenance costs and a reallocation to Capital and contract cost in this ICR. Finally, evaporative and permeation testing is required for highway motorcycles. Manufacturers have choices in terms of complying with this requirement, but for those manufacturers that choose to certify their fuel lines and fuel tanks, there is an additional expense for certifying those evaporative components. 

Labor hours:  The currently approved ICR has estimated 5,453 hours annually per respondent. The previous ICR accounted for hours per respondent by multiplying the certification and compliance activities by the number of respondents for each activity. This ICR renewal followed the same methodology for consistency. We now estimate 5,832 hours per respondent in this ICR renewal. This increased difference is primarily the result of improved data through our collection of testing information for each manufacturer, now available publicly. The EPA now collects information on where emissions testing was performed and by whom. We now have a more robust data set to inform our estimation(s) and further assist the EPA in our compliance responsibilities. This increase in hours reflects a greater understanding in the burdens of meeting EPA's reporting and recordkeeping obligations in the process of estimating respondent burden to comply with EPA requirements through certification and compliance activities. 

Labor costs:  As stated above, this request uses BLS labor costs with a 130% multiplier, which captures the BLS estimate of overhead and medical care cost not reflected in the wage estimates. In addition, the labor cost estimate reflects changes in the number of vehicle certification applications to meet exhaust and evaporative emissions requirements. 

6(g) Burden Statement

The table in Section 6(e) presents the total estimated burden for the HMC exhaust and evaporative emissions compliance programs; approximately 367 hours per year. Annual operating and capitalized costs are approximately $342,565 and $31,998 respectively. While the universe of vehicle manufacturers is quite diverse and there is no "typical" respondent, the burden estimates for the various individual activities in section 6(a) can be used to estimate the burden for a particular respondent (about $11,840.72). These estimates include time to review applicable regulations and guidance documents, generate and gather the necessary information, submit documents, conduct certification and compliance testing, and provide all required reporting and record keeping activities.

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 submitting 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 the 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, the EPA has established a public docket for this ICR under Docket ID Number EPA-HQ-OAR - 2016 - 0027, which is available for online viewing at 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. EPA Docket Center, Environmental Protection Agency, Mailcode 28221T, 1200 Pennsylvania Ave., NW., Washington, DC 20460.

The EPA's policy is that all comments received will be included in the public docket without change including any personal information provided, unless the comment includes profanity, threats, information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. 

Comments can also be sent 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 EPA-HQ-OAR-2016-0027 and OMB Control Number 2060-0710 in any correspondence.