Document ID: EPA-HQ-OAR-2006-0745-0002
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2006-10-04T04:00Z

INFORMATION COLLECTION REQUEST (ICR)

OMB-83 SUPPORTING STATEMENT

ENVIRONMENTAL PROTECTION AGENCY

OFFICE OF AIR & RADIATION

A.	JUSTIFICATION

1.	Identification of the Information Collection

a.	Title:  Reformulated Gasoline Commingling Provisions

EPA Number:  2228.02

b. Short characterization:

	With this information collection request (ICR), the Office of Air and
Radiation (OAR) is seeking permission to accept notifications from
gasoline retailers and wholesale purchaser-consumers related to
commingling of ethanol  blended and non-ethanol-blended reformulated
gasoline (RFG) under §1513 of the Energy Policy Act of 2005 (EPAct) and
40 CFR § 80.78(a)(8)(ii)(B); and to provide for a compliance option
whereby a retailer or wholesale purchaser-consumer may demonstrate
compliance via test results under § 80.78(a)(8)(iii)(A). These
provisions are designed to grant compliance flexibility.  Parties were
subject to optional recordkeeping and reporting on June 1, 2006.  We are
requesting that the Office of Management and Budget (OMB) approve the
renewal of this ICR and that it remain in effect 3 years from the
approval date. A more detailed discussion of EPAct § 513 and 40 CFR
§§ 80.78(a)(8)(ii)(B) and (iii)(A) follows.

	Section 1513 of the EPAct addresses the combining of ethanol-blended
RFG with non-ethanol-blended RFG.  This provision amended the Clean Air
Act (CAA) to add a new § 211(s) providing retail outlets two ten-day
opportunities during a single VOC-control season to blend batches of
ethanol-blended and non-ethanol- blended RFG.  Under this new section,
retail outlets are allowed to sell non-ethanol-blended RFG which has
been combined with ethanol blended RFG under certain conditions:

First, each batch of gasoline to be blended must have been
“individually certified as in compliance with subsections (h) and (k)
[of CAA § 211] prior to being blended.”  

Second, the retailer must notify EPA prior to combining the gasolines
and identify the exact location of the retail outlet and specific tank
in which the gasoline is to be combined.  [The notifications create a
new information collection burden and are estimated in this information
collection request.]    

Third, the retailer must retain, and, upon request by EPA, make
available for inspection, certifications accounting for all gasoline at
the retail outlet.  [This information is normally kept in the normal
course of business and we believe retaining it is a customary business
practice (CBP).]  

Fourth, retailers are prohibited from combining VOC-controlled gasoline
with non-VOC-controlled gasoline between June 1 and September 15.  

	  SEQ CHAPTER \h \r 1 To provide assurance that gasoline is in
compliance with the downstream VOC standard after the ten-day period,
EPA issued a direct final rule that amended 40 CFR Part 80 to address
commingling (71 FR 8973, February 22, 2006).  There are two options
available for retailers and wholesale purchaser-consumers.  Under the
first option, the retailer may add both ethanol-blended RFG and
non-ethanol-blended RFG to the same tank an unlimited number of times
during the ten-day period, but must test the gasoline in the tank at the
end of the ten-day period to make sure that the RFG is in compliance
with the VOC standard.  Under the second option, the retailer must draw
the tank down as much as practicable at the start of the ten-day period,
before RFG of another type is added to the tank, and add only RFG of one
type to the tank during the ten-day period.  Because there is a
recordkeeping requirement associated with retail station test results
under the first option, we have calculated an estimated burden for that
activity.  We do not anticipate that many retail stations (5% or fewer)
will choose to test under option one.

	Retailers are also limited in the frequency with which batches of
non-ethanol RFG may be combined with ethanol RFG.  Retailers may combine
such batches of RFG a maximum of two periods between May 1 and September
15. Each period may be no more than ten consecutive calendar days.    

	

2.  Need For, and Use of, the Collection

Authority for the Collection

	  SEQ CHAPTER \h \r 1 Sections 114 and 208 of the 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.  The
relevant regulations are in 40 CFR Part 80, Regulation of Fuels and Fuel
Additives. See §§ 80.78(a)(8)(ii)(B) and (iii)(A).  

	

	b.	Practical Utility/Uses of the Data

	The recordkeeping and reporting requirements of this regulation will
allow EPA to monitor compliance with the commingling requirements of CAA
§ 211(s), as added by § 1531 of the EPAct.

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

	a. 	Non-duplication

	  SEQ CHAPTER \h \r 1 Efforts have been made to eliminate duplication
in this information collection. Where possible, information requirements
from various organizations within the Agency have been combined to
minimize the submittal of duplicate information in different formats. 
The information in this collection will not be available from another
source.

	b. 	Public Notice

	EPA will provide opportunity for notice and comment regarding this ICR.

	c. 	Consultations

	We have drawn upon our experience with similar fuels regulations and
have utilized information available from National Petroleum News to
develop these estimates.  

	d. 	Effects of Less Frequent Data Collection

	We believe that the largest number of reports will be collected under
the notification option in 2006 and anticipate a drop-off in responses
after the first year.  We very likely have over-estimated the burden
because we have used a conservative approach that assumes all parties
may respond twice annually.  With regard to the testing option and
retention of those records, we anticipate that 5% or fewer of
respondents will be affected annually.  Less frequent collection of data
would make it impossible to carry out the provisions of the CAA and
EPAct.    

	e. 	General Guidelines

	This rule does not exceed any of the OMB guidelines.

	f.. 	Confidentiality

	We inform respondents that they may assert claims of business
confidentiality (CBI) for any or all of the information they submit. We
do not believe that most respondents would characterize the information
they submit to us under this information collection as CBI.  Because of
this, we are permitting reporting via e-mail.  However, any information
claimed as confidential will be treated in accordance with 40 CFR Part 2
and established Agency procedures.  Information that is received without
a claim of confidentiality may be made available to the public without
further notice to the submitter under 40 CFR § 2.203.

g.	Sensitive Information

	

	This information collection does not require submission of any
sensitive information.

4.	The Respondents and the Information Requested

	a.	Respondents/SIC Codes

  SEQ CHAPTER \h \r 1 The respondents to this information collection
are:

	-Retailers (including wholesale purchaser-consumers)

	Recordkeeping and reporting may be required by the following
industries, with 2002 NAICS Code indicated in parentheses:  

Gasoline stations (447)

Gasoline stations with convenience stores (447110)

Gasoline stations without convenience stores (447190)

	b.	Information Requested

		

		A)	Reporting:  Respondents who use the notification option will be
sending a very simple report that could take the form of a short e-mail
or similar communication.  No form is to be developed, although we may
consider developing a simple web based reporting interface for
submission of the information, if that option is desired by the
respondent community.  

		B)	Recordkeeping:  Under the testing option, respondents must retain
underlying records related to results of any tests they perform for five
years. We anticipate that 5% or fewer respondents will choose the
testing option. The burden of retaining the testing results record is
small.  

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

a.	Agency Activities

All notifications will be reviewed by EPA.  (Test results will be shown
to EPA field compliance and enforcement personnel upon request.)

Notifications will be stored by EPA.

b. 	Collection Methodology and Management

	Data will be collected by industry and reported to EPA in the form of a
simple e-mail or record that identifies the service station and its
address and identifies the tank where commingling will occur. As
mentioned above, we do not anticipate that this information will come in
under a CBI claim; however, that is a possibility and we will treat all
such information in accordance with 40 CFR Part 2 and established Agency
procedures for handling CBI.  Information claimed as CBI will be stored
in appropriately controlled areas.

c.	Small Entity Flexibility

	This collection will not adversely affect small entities. The whole
purpose of the commingling provision of the EPAct is to provide
flexibility.  The actual estimated annual burden for a typical
respondent who submits up to two notifications per year is estimated to
be $35.50 (0.50 hours) annually. 

d.	Collection Schedule

	We anticipate that notifications will be submitted no more than twice
per year and that the number of notifications we receive will drop off
significantly after 2006.

6.	Estimating the Burden and Cost of Collection

(a)	Estimating the Respondent Universe 

	We drew upon experience implementing similar regulations among the same
entities to develop estimates of the burden associated with this
collection.  We consulted the National Petroleum News to assist us in
estimating the total number of retail stations. Since that publication
contained a nationwide estimate, we assumed 30% of that number for
stations in RFG areas (since 30% of the gasoline market nationwide is
RFG).  Although imperfect, we believe this is a reasonable estimate, and
have applied similar logic in estimating the number of wholesale
purchaser-consumers.  We have estimated that there are 54,000
respondents.      

(b) 	Estimating the Respondent Burden and Cost

	Three labor categories are involved:  managerial (includes legal and
professional review), technical, and clerical. The estimates use the
Bureau of Labor Statistics figures from "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 2006.  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. 

There are no purchased services or start-up/maintenance costs associated
with this ICR.Respondent Burden Hours & Costs 

(Including Capital & Maintenance - O&M)

Collection Activity	Number of

Respondents	Number of

Responses

per

Respondent	Total Number of Responses	Hours per Response

& Cost per

Response	Total Hours

&

Total Cost 

@ $71/hour	Total O&M

Prepare and Submit 

Notification	54,000	2	108,000	0.25

-----

$17.75	27,000

hours

------

$1,917,000

 

	0

Maintain

Test

Results 

Documents

(assumes

5% of 

respondents test)	2,700	1	  2,700	0.25

-----

$17.75	675 hours

------

$47,925	0

Total	56,700

respondents	

-----------	110,700

responses	

-----------	27,675

hours

------

$1,964,925	0

 

  c. 	Estimating the Agency Burden and Cost

	No response is required to notifications unless a potential violation
is noted.  Responses will be routinely reviewed and filed as part of our
existing reporting system for fuels and fuel additives.  This activity
will present no significant, quantifiable burden to the Agency. 
However, we may develop a web based format for reporting for the
convenience of respondents and estimate such development would cost the
Agency $50,000.  

	

d.	Estimating the Respondent Universe

	We were able to estimate the number of regulated entities drawing upon
experience regulating the same entities and through the use of an
industry publication.  

e.	Bottom Line Burden Hours and Costs

	From the Table on page 7 we estimate the following:

TOTAL NO. OF REPORTS:   110,700

TOTAL BURDEN HOURS:   27,675

TOTAL LABOR COSTS: $ 1,964,925

TOTAL NON-POSTAGE COSTS (for PURCHASED SERVICES):  -0-

f.	Reason for Change in Burden

	The change in burden is due to regulations that effect the EPAct
provision on commingling.  As discussed above, these provisions are
designed to grant flexibility to retailers and wholesale
purchaser-consumers and we estimate that an average respondent who
submits two notifications (responses) per year will have an annual
burden of $35.50 (0.50 hours).

g.	Burden Statement

	The average respondent burden in hours per response for this ICR is
estimated at 0.25 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 the instructions; develop, acquire, install, and utilize
technology and systems for the purpose 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
transit 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.

	  SEQ CHAPTER \h \r 1 Send comments on the Agency’s need for this
information, the accuracy of the provided burden estimates, and any
suggested methods for minimizing respondent burden, including through
the use of automated collection techniques to the Director, OPPE
Regulatory Information Division, U.S. Environmental Protection Agency
(2137) 1200 Pennsylvania Avenue, N.W., Washington, DC; and to the Office
of Information and Regulatory Affairs, Office of Management of Budget,
725 17th Street, NW, Washington, DC 20503, Attention, Desk Officer for
EPA. Be sure to include the EPA ICR number (2228.02) in correspondence.

	 The National Petroleum News (Market Facts - July 2005) counts 168,987
retail stations in 2005.  This number was multiplied by 0.30 to yield
50,696 and rounded up to 51,000 for ease of use.  In our ICR for diesel
fuel, “Recordkeeping and Reporting Requirements for the Fuel Quality
Regulations for Diesel Fuel Sold in 2001 and Later Years; for Tax-exempt
(Dyed) Highway Diesel Fuel; and for Nonroad Locomotive and Marine Diesel
Fuel” (EPA ICR 1718.06), we estimated that there were 10,000 wholesale
purchaser-consumer facilities handling petroleum product.  For purposes
of this ICR, we are multiplying this number by 0.30 to yield 3,000. 
Adding our estimate of the number of retailers (51,000) and the number
of wholesale purchaser-consumers (3,000) yields 54,000 respondents.  We
believe this number to be on the high side in estimating actual
respondents, but it does provide a reasonable benchmark.    

 The average respondent burden is the total number of hours divided by
the total number of reports from the Table, rounded up for simplicity. 

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