Document ID: EPA-HQ-OAR-2005-0161-3216
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2010-11-18T05:00Z

PROPOSED SUPPORTING STATEMENT FOR STANDARD FORM 83-I

	PART A OF THE SUPPORTING STATEMENT

1.  IDENTIFICATION OF THE INFORMATION COLLECTION

1(a) TITLE AND NUMBER OF THE INFORMATION COLLECTION

Alternative Affirmative Defense Requirements for Ultra-low Sulfur
Diesel.  The current OMB control number is 2060-0639.  The EPA number
for this proposed information collection request (ICR) renewal is
2364.03.  The docket number for this ICR, and the final it relates to,
is EPA-HQ-OAR-2007-1158.  

(b) SHORT CHARACTERIZATION/ABSTRACT

The highway diesel program regulations require most motor vehicle
(highway) diesel fuel sold at retail stations to contain 15 parts per
million (ppm) sulfur or less (hereafter referred to as ultra low sulfur
diesel fuel, or ULSD) beginning October, 2006. [Note:  General
recordkeeping and reporting related to diesel fuel regulations for
on-road, non-road and performance-based test methods are included in EPA
ICR 1718.08 (OMB Control Number 2060-0277).]

Under the regulation, where a violation of the 15 ppm sulfur standard is
identified at a retail outlet, the retailer responsible for dispensing
the noncompliant fuel is deemed liable, as well as the refiner(s),
importer(s) and distributor(s) of such fuel.  The highway diesel
regulations further provide, however, that any person deemed liable can
rebut this presumption by establishing an affirmative defense that
includes, among other things, showing that it conducted a quality
assurance sampling and testing program as prescribed by the regulations.
This ICR covers burdens and costs associated with provisions that allow
refiners and importers of ULSD an alternative means of meeting the
affirmative defense requirements in the diesel sulfur regulations by
participating in a nationwide diesel fuel sampling and testing program. 
The reporting burden covered by this proposed ICR related to reports
that refiners, importers and distributors, have to submit in the event
they have a non-complying sulfur test result. (See 40 CFR § 80.613.) 
The authority citation for the direct final rule and the association
information collection is for the following Clean Air Act sections:  42
United States Code §§ 7414, 7542, 7545, and 7601(a).

2.  NEED FOR AND USE OF THE COLLECTION

(a) NEED/AUTHORITY FOR THE COLLECTION

The basic need and authority for the collection of information have
been established in the ICR for the highway diesel final rule.  The rule
established specific recordkeeping and reporting requirements in order
to enforce compliance with the 15 ppm sulfur standard for highway diesel
fuel.

(b) PRACTICAL UTILITY/USERS OF THE DATA

The alternative affirmative defense (survey) provisions are designed to
grant flexibility to refiners and importers by permitting them to
conduct activities normally conducted on a facility basis on a
nationwide basis.  The burden described in this ICR only affects parties
who receive a test result that indicates non-compliance.      

The EPA’s Office of Enforcement and Compliance Assurance and EPA’s
Office of Air and Radiation, Office of Transportation and Air Quality,
will be the governmental users of the information contained in this
proposed information collection.    

3.	NONDUPLICATION, CONSULTATIONS, AND OTHER COLLECTION CRITERIA

(a) NONDUPLICATION 

This proposed ICR is not unnecessarily duplicative of information
otherwise reasonably accessible to the Agency.  Wherever possible, we
have designed the proposed regulation to make sure that there is no
unnecessary duplication.  	

(b) PUBLIC NOTICE REQUIRED PRIOR TO ICR SUBMISSION TO OMB

A copy of this supporting statement, the accompanying Federal Register
notice announcing our proposal to renew this ICR, and the final rule are
available in the public docket. 

(c) CONSULTATIONS

We encourage all interested parties to submit comments.    

(d) EFFECTS OF LESS FREQUENT COLLECTION

Less frequent reporting would make discovery and correction of
violations take too long to discover from the date of violation, and
would give non-complying parties a competitive advantage for long
periods of time.  A lesser recordkeeping burden would make verification
of compliance extremely difficult.

(e) GENERAL GUIDELINES

The general guidelines for the collection of information pursuant to the
highway diesel rule are approved in the ICR for the final highway diesel
rule.  The record retention requirements specified is five (5) years. 
This proposed ICR also specifies five (5) years as the retention period.

(f) CONFIDENTIALITY AND SENSITIVE QUESTIONS

 (i) Confidentiality

Any information submitted to EPA for which a claim of confidentiality is
made will be safeguarded according to EPA regulations at 40 C.F.R. 2.201
etc. seq.   

(ii) Sensitive Questions

This section is not applicable as this proposed ICR does not involve
matters of a sensitive nature.

4.	THE RESPONDENTS AND THE INFORMATION REQUESTED

(a) RESPONDENTS/NAICS and SIC CODES

Recordkeeping and, in some cases, reporting affects the following
respondents:  refiners (2911/324110), importers (5172/424720), marketers
and other distributors (5171/424710 and 5172/424720).

(b) INFORMATION REQUESTED

(i) Data Items, Including Recordkeeping and Reporting Requirements

Knowledge of the following definitions at 40 CFR 80.2 is important for a
thorough understanding of the reporting and recordkeeping requirements:

“Motor Vehicle Diesel Fuel” means any diesel fuel or other
distillate fuel sold in any State (State means a State, the District of
Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, and the Northern Mariana Islands) that is used, intended
for use in, or made available for use in for use in motor vehicles or
motor vehicle engines.

“Refiner” means any person who owns, leases, operates, controls, or
supervises a refinery.

“Importer” means a person who imports diesel fuel from a foreign
country into the United States (including the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa, and the Northern Mariana
Islands).

There is a respondent burden associated with refiners, importers and
distributors preparing a report for EPA explaining the circumstances
behind and root causes for any noncompliant ULSD samples.  There is also
an Agency burden associated with reviewing each report.  This burden is
estimated below under “ESTIMATING THE BURDEN AND COST OF THE
COLLECTION”.  The following sections describe respondent and Agency
activities.

 (ii) 	Respondent Activities

The following are required:

Read and comprehend the regulations.

Train personnel to meet the requirements, employing new technologies if
warranted.

Develop the information that is not already available.

Gather and organize the information.

Review the information, perform quality assurance, and take corrective
action, if necessary, to meet the regulatory requirements.

Report the information to EPA, as specified in the regulations.

5.  	THE INFORMATION COLLECTED--AGENCY ACTIVITIES, COLLECTION 
METHODOLOGY AND INFORMATION MANAGEMENT

(a) AGENCY ACTIVITIES

The following are required:

Develop a thorough understanding of the regulatory requirements. 
Prepare guidance documents and forms.  

Convey the requirements in a manner that is understandable.  Emphasize
the benefits of submitting data electronically.

Respond to inquiries.

Provide access to the regulations and guidance documents.

Review the submitted information prior to data entry for compliance with
submission requirements.

Contact the respondent when the information has not been submitted
properly and provide guidance on correction of the problem.

Maintain and refine hardware and software systems for handling
confidential data via hard copy and electronically.

Administer a contract for data entry.

Input information into databases and store the information.

Perform data analysis and identify violations.

	 (b) COLLECTION METHODOLOGY AND MANAGEMENT

The information collection has been developed by EPA offices that have
planned and allocated resources for the efficient and effective
management and use of the information to be collected, including the
processing of the information in a manner which will enhance the utility
of the information for the Agency and the public.  The information
collection, to the maximum extent practicable, uses appropriate
information technology to reduce burden and improve data quality, Agency
efficiency, and responsiveness to the public.

The information is carefully reviewed for compliance with the
requirements.  

No changes to the collection methodologies in the existing ICR for the
diesel rule are anticipated as a result of this proposed ICR
modification.

(c) SMALL BUSINESS FLEXIBILITY

The alternative affirmative defense rule grants flexibility to all
affected parties, regardless of size.  The recordkeeping and reporting
burden has been designed to be minimal for respondents of all business
sizes.  

(d) COLLECTION SCHEDULE

Response is only required in the case of a non-complying sample.

6.	ESTIMATING THE BURDEN AND COST OF THE COLLECTION

 	(a) ESTIMATING THE RESPONDENT BURDEN

We drew upon consultation with industry and our own experience
implementing similar regulations to estimate the burden associated with
this ICR. 



(b) ESTIMATING THE RESPONDENT COST

Three labor categories are involved:  managerial (includes legal and
professional review), technical, and clerical. The estimates use Bureau
of Labor Statistics, "Employer Costs for Employee Compensation - Table
12 - Private Industry, Manufacturing, and Non-Manufacturing Industries
by Occupational Group (December 2003), with a 3% inflation factor
applied to bring the values to present dollars.  Using this method, the
following wages and benefits apply by category:

Wages and Benefits

Managerial 	$53.87 per hour

Technical	$35.29 per hour

Clerical	$24.56 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	$108 per hour

Technical	$71 per hour

Clerical	$49 per hour

The labor mix for the activities estimated will be about the same for
each and is consistent with prior ICRs in this series.  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 $71 per hour, which will be used in this ICR
modification. 

"Purchased services" relates to the survey related to sampling diesel
fuel at retail outlets, which would be conducted by an outside surveyor
hired by industry.  There are no capital/start-up costs associated with
this ICR.

(c) ESTIMATING THE RESPONDENT UNIVERSE 

We were able to estimate the number of regulated entities by drawing
upon our experience regulating the same entities.  Respondents for this
action may include refiners, importers, and distributors.  Based on
history and enforcement experience, we expect that approximately 20
instances of non-compliance will result in 20 reports to be submitted
each year.   

Annual Respondent Burden Hours & Costs

(Including Non-Postage "Other Costs")

Collection

Activity 	# of Respondents	# of Reports per Respondent

 	Total # of Reports 

	# of Hours per Report

	Total 

Hours

Submit report for each exceedance	20	1	20	16	320

	The estimated respondent burden for reviewing each report for a
noncompliant sample is 16 hours, or $1,136 per response, so the total
respondent burden for evaluating 20 reports per year would be $22,270.

	(d) ESTIMATING AGENCY BURDEN AND COST

The annual Agency burden is determined using the 2009 OPM hourly pay
table applicable for the Washington DC area, with values multiplied by
1.6, the standard government benefits multiplier. The hourly wage rates
are as follows, rounded up to the nearest five dollars:  

EPA Manager (GS-15, step one) = $93

Technical Staff (GS-13, step one) = $67

Clerical Staff (GS-5, step one) = $26

The total annual Agency burden hours are estimated as follows:

Activity	# of Responses	Manager

Hours per Response	Technical

Hours per Response	Clerical

Hours per Response	Total Agency Hours

Review report for each exceedance	20	0	2	0	40

Based on historical experience, we expect to find approximately 20
noncompliant samples per year.  The estimated Agency burden for
reviewing each report for a noncompliant sample is 2 hours, or $134 per
response, so the total Agency burden for evaluating 20 reports per year
would be $2,680.

(e) BOTTOM LINE BURDEN HOURS AND COSTS

The annual estimates in burden hours and costs associated with this rule
are as follows:

TOTALS FROM THE TABLES:

TOTAL NO. OF REPORTS:   20

TOTAL BURDEN HOURS:   360

TOTAL COST: $24,950

(f) REASON FOR CHANGE IN BURDEN

	The proposed change in burden is due to issuance of a regulation
affecting sampling and testing requirements for ULSD sold at retail
stations.

(g) BURDEN STATEMENT

 The average respondent burden in hours per response for this ICR is
estimated at 16 hours.  The average Agency burden in hours per response
for this ICR is estimated at 2 hours.  

 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 and comments may be
submitted to the attention of this docket number:  EPA-HQ-OAR-2007-1158.
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 docket number in any correspondence. 

B.	COLLECTION OF INFORMATION EMPLOYING STATISTICAL METHODS

This section is not applicable because statistical methods are not used
in the data collection associated with the diesel fuel regulations. 

 See “Salary Table 2009 – DCB,” US Office of Personnel Management,
accessed July 16, 2009 at http://www.opm.gov/oca/09tables/html/dcb.asp.

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