Document ID: EPA-HQ-OAR-2003-0035-0002
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2003-03-12T05:00Z

1
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
ICR:
Reporting
Requirement
for
a
Small
Refiner
Applying
for
a
Revised
Sulfur
Cap
Standard.
(
ICR
2073.01)

1(
b)
SHORT
CHARACTERIZATION
This
Information
Collection
Request
(
ICR)
would
provide
for
the
application
by
small
refiners
for
an
adjustment
by
EPA
in
their
per­
gallon
cap
sulfur
standards.
This
type
of
adjustment
addresses
unintended
problems
that
the
gasoline
sulfur
program
can
cause
for
small
refiners
in
certain
circumstances.
The
information
collected
in
such
an
application
will
allow
EPA
to
determine
the
appropriateness
of
such
an
adjustment
and
the
appropriate
level
for
the
adjusted
standard,
as
well
as
the
required
number
of
sulfur
credits
that
the
refiner
will
use
to
offset
the
adjustment.

Based
on
the
refiner's
application,
EPA
may
approve
a
temporary
adjustment
in
the
refiner's
per­
gallon
cap
sulfur
standard,
easing
the
compliance
burden
during
the
transition
to
low
sulfur
gasoline
production.

The
reporting
requirement
covered
by
this
ICR
applies
in
the
event
that
an
approved
small
refiner
chooses
to
apply
to
EPA
for
an
adjustment
of
its
per­
gallon
cap
sulfur
standard.
The
new
section
80.271
defines
the
information
to
be
included
in
such
an
application.

2.
NEED
FOR
AND
USE
OF
THE
COLLECTION
2(
a)
NEED/
AUTHORITY
FOR
THE
COLLECTION
The
national
Tier
2
vehicle
emissions
regulations
and
accompanying
gasoline
sulfur
program
were
promulgated
in
2000,
with
requirements
phasing
in
beginning
in
2004.
A
key
part
of
the
gasoline
sulfur
program
was
a
set
of
special
provisions
for
small
refiners
designed
to
provide
partial,
temporary
relief
in
recognition
of
the
unique
challenges
the
regulations
imposed
on
these
refiners.
By
allowing
small
refiners
to
meet
less
stringent
interim
sulfur
standards
for
four
years,
EPA
was
able
to
establish
a
stringent
overall
national
sulfur
reduction
2
program
for
larger
refiners
and
to
achieve
the
available
emission
reduction
benefits
without
a
disproportionate
burden
on
small
refiners.

As
the
refining
industry
has
prepared
to
comply
with
the
2004
requirements,
it
appears
that
the
small
refiner
provisions
will
serve
their
intended
purpose
for
most
small
refiners.
It
has
come
to
our
attention,
however,
that
certain
circumstances
can
exist
that
have
the
effect
of
preventing
a
small
refiner
otherwise
eligible
for
small
refiner
interim
sulfur
standards
from
making
use
of
these
provisions.
A
small
refiners
can
meet
one
of
the
interim
gasoline
sulfur
standards,
the
annual
average
sulfur
standard,
by
using
sulfur
credits
if
it
chooses
(
e.
g.,
if
it
faces
large
technical
or
financial
difficulties
in
reducing
sulfur
levels).
However,
under
the
original
regulations,
the
other
interim
standard,
the
per­
gallon
cap
standard,
must
be
met
for
each
batch
of
gasoline
without
the
use
of
credits.
We
now
believe
that
this
requirement
to
produce
gasoline
at
or
below
the
per­
gallon
cap
sulfur
level
can
create
an
unintended
impediment
to
the
ability
of
a
small
refiner
to
benefit
from
the
interim
small
refiner
program.

EPA
is
therefore
establishing
a
new
provision
through
which
a
small
refiner
can
apply
for
an
upward
adjustment
in
its
pergallon
cap
sulfur
standard.
This
adjusted
standard
would
be
offset
by
the
use
of
sulfur
credits.
To
apply
for
such
an
adjustment,
an
approved
small
refiner
would
send
EPA
a
letter
providing
several
pieces
of
information:

(
1)
A
detailed
description
of
the
nature
of
the
difficulty
that
the
per­
gallon
cap
creates;
(
2)
The
refiner's
proposed
adjusted
per­
gallon
cap
level
and
the
proposed
duration
for
the
adjustment,
including
an
explanation
of
how
a
lower
per­
gallon
cap
level
or
shorter
duration
would
not
address
the
hardship;
(
3)
The
refiner's
expected
actual
annual
average
sulfur
level
(
i.
e.,
prior
to
the
use
of
any
credits
or
allotments)
for
each
year
that
the
adjustment
would
be
in
effect;
(
4)
The
refiner's
estimate
of
the
number
of
gallons
of
gasoline
it
produces
that
will
exceed
the
established
small
refiner
per­
gallon
standard
under
§
80.240(
a)
for
each
year
that
the
adjusted
per­
gallon
cap
would
apply;
(
5)
The
number
of
sulfur
allotments
or
credits
that
the
refiner
estimates
will
be
required
under
paragraph
(
d)
of
this
section
for
each
year
that
the
adjusted
per­
gallon
cap
would
apply
and
a
plan
for
obtaining
this
number
of
allotments
or
credits.
3
(
6)
Other
relevant
information
that
EPA
requests.

This
information
collection
requirement
is
necessary
for
EPA
to
confirm
the
nature
of
a
refiner's
need
for
a
per­
cap
standard
adjustment
and
the
appropriate
degree
of
that
adjustment,
as
well
as
to
confirm
that
the
refiner
will
offset
the
adjustment
properly
with
credits.
When
this
information
is
provided
and
when
it
confirms
the
refiner's
claim
of
hardship,
EPA
can
adjust
the
per­
cap
standard
and
achieve
the
intended
goal
of
the
small
refiner
interim
program
by
permitting
such
a
refiner
to
participate.

The
gasoline
sulfur
program
was
promulgated
under
the
authority
granted
by
Section
211(
c)(
1)
of
the
Clean
Air
Act.
The
requirement
that
a
small
refiner
wishing
to
seek
an
adjustment
of
its
per­
gallon
cap
sulfur
standard
apply
by
providing
EPA
with
justifying
information
is
covered
by
the
same
general
authority.
This
is
because
this
reporting
requirement
allows
EPA
to
achieve
the
stated
purposes
of
the
program
and
to
prevent
unintended
hardship
for
certain
small
refiners.

2(
b)
PRACTICAL
UTILITY/
USERS
OF
THE
DATA
When
a
small
refiner
provides
EPA
with
the
required
information
in
an
application
letter,
EPA
will
evaluate
the
information.
When
this
information
confirms
the
refiner's
claim
of
hardship,
EPA
can
adjust
the
refiner's
per­
cap
standard
and
achieve
the
intended
goal
of
the
small
refiner
interim
program
by
permitting
such
a
refiner
to
participate.
EPA's
Office
of
Transportation
and
Air
Quality,
will
be
the
governmental
user
of
the
information
contained
in
this
information
collection.

3.
NONDUPLICATION,
CONSULTATIONS,
AND
OTHER
COLLECTION
CRITERIA
3(
a)
NONDUPLICATION
This
is
a
very
specific
and
unique
information
collection,
and
is
not
duplicated
in
any
other
information
collection.

3(
b)
PUBLIC
NOTICE
REQUIRED
PRIOR
TO
ICR
SUBMISSION
TO
OMB
Public
comments
have
not
been
solicited
prior
to
the
submission
of
this
ICR
to
OMB.
However,
the
information
collection
activities
upon
which
this
ICR
are
based
are
part
of
a
Direct
Final
Rule.
EPA
is
publishing
this
rule
without
a
prior
proposal
because
we
view
this
action
as
noncontroversial
and
anticipate
no
adverse
comment.
However,
we
are
simultaneously
publishing
a
separate
document
that
will
serve
as
the
proposal
to
4
adopt
the
provisions
in
the
Direct
Final
rule
if
adverse
comments
are
filed.
This
rule
will
be
effective
90
days
from
date
of
publication
in
the
Federal
Register
without
further
notice
unless
we
receive
adverse
comment
or
a
request
for
a
public
hearing
within
30
days
from
date
of
publication
in
the
Federal
Register.
If
we
receive
adverse
comment
on
one
or
more
distinct
amendments,
paragraphs,
or
sections
of
this
rulemaking,
we
will
publish
a
timely
withdrawal
in
the
Federal
Register
indicating
which
provisions
are
being
withdrawn
due
to
adverse
comment.
We
may
address
all
adverse
comments
in
a
subsequent
final
rule
based
on
the
proposed
rule.
We
will
not
institute
a
second
comment
period
on
this
action.
Any
parties
interested
in
commenting
must
do
so
within
30
days
from
publication
of
the
Direct
Final
Rule
in
the
Federal
Register.
Any
distinct
amendment,
paragraph,
or
section
of
today's
rulemaking
for
which
we
do
not
receive
adverse
comment
will
become
effective
on
the
date
set
out
above,
notwithstanding
any
adverse
comment
on
any
other
distinct
amendment,
paragraph,
or
section
of
the
rule.

3(
c)
CONSULTATIONS
We
discussed
in
general
with
one
refiner
who
raised
this
issue
how
EPA
might
address
their
issue
relating
to
the
pergallon
sulfur
standard.

3(
d)
EFFECTS
OF
LESS
FREQUENT
COLLECTION
This
issue
is
not
applicable,
since
a
refiner
granted
a
temporary
adjustment
to
its
per­
gallon
cap
standard
never
need
apply
again.

3(
e)
GENERAL
GUIDELINES
This
information
request
consists
of
a
brief
one­
time
letter
from
a
small
refiner
desiring
an
adjustment
in
its
sulfur
cap
standard.

3(
f)
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
et.
seq.

3(
g)
SENSITIVE
QUESTIONS
This
section
is
not
applicable
as
this
ICR
does
not
involve
matters
of
a
sensitive
nature.
5
4.
THE
RESPONDENTS
AND
THE
INFORMATION
REQUESTED
4(
a)
RESPONDENTS/
SIC
CODES
Respondents
are
a
small
subset
of
refiners
of
RFG
and
conventional
gasoline
(
2911)
that
have
been
approved
by
EPA
as
small
refiners
and
that
can
show
that
their
participation
in
the
small
refiner
interim
gasoline
sulfur
program
is
impeded
by
their
per­
gallon
cap
sulfur
standard.
We
believe
that
there
is
at
least
one
and
possibly
as
many
as
5
small
refiners
that
might
be
eligible
for
an
adjustment
in
their
per­
gallon
cap
standard.

4(
b)
INFORMATION
REQUESTED
(
i)
Data
Items,
Including
Record
keeping
Requirements
This
information
collection
involves
a
letter
to
EPA
providing
the
following
information.

(
1)
A
detailed
description
of
the
nature
of
the
difficulty
that
the
per­
gallon
cap
creates;
(
2)
The
refiner's
proposed
adjusted
per­
gallon
cap
level
and
the
proposed
duration
for
the
adjustment,
including
an
explanation
of
how
a
lower
per­
gallon
cap
level
or
shorter
duration
would
not
address
the
hardship;
(
3)
The
refiner's
expected
actual
annual
average
sulfur
level
(
i.
e.,
prior
to
the
use
of
any
credits
or
allotments)
for
each
year
that
the
adjustment
would
be
in
effect;
(
4)
The
refiner's
estimate
of
the
number
of
gallons
of
gasoline
it
produces
that
will
exceed
the
established
small
refiner
per­
gallon
standard
under
§
80.240(
a)
for
each
year
that
the
adjusted
per­
gallon
cap
would
apply;
(
5)
The
number
of
sulfur
allotments
or
credits
that
the
refiner
estimates
will
be
required
under
paragraph
(
d)
of
this
section
for
each
year
that
the
adjusted
per­
gallon
cap
would
apply
and
a
plan
for
obtaining
this
number
of
allotments
or
credits.
(
6)
Other
relevant
information
that
EPA
requests.

There
are
no
new
recordkeeping
requirements.

(
ii)
Respondent
Activities
This
information
collection
involves
a
letter
to
EPA.
If
the
provided
information
is
complete
and
EPA
approves
an
adjustment
of
the
per­
gallon
cap
standard,
no
further
information
collection
will
be
necessary.
6
5.
THE
INFORMATION
COLLECTED­­
AGENCY
ACTIVITIES,
COLLECTION
METHODOLOGY
AND
INFORMATION
MANAGEMENT
5(
a)
AGENCY
ACTIVITIES
EPA
will
review
the
information
provided
in
the
application
letter
and
inform
the
refiner
of
an
approved
adjustment
in
the
per­
gallon
cap
standard.

5(
b)
COLLECTION
METHODOLOGY
AND
MANAGEMENT
There
are
no
special
collection
methodologies
necessary
for
this
information
collection.

5(
c)
SMALL
BUSINESS
FLEXIBILITY
The
new
provision
established
in
this
rule
applies
only
to
small
refiners
and
provides
flexibility
to
small
refiners
meeting
certain
criteria.

5(
d)
COLLECTION
SCHEDULE
There
is
no
special
schedule
for
this
information
requirement.
Refiners
may
apply
at
any
time.

6.
ESTIMATING
THE
BURDEN
AND
COST
OF
THE
COLLECTION
6(
a)
ESTIMATING
RESPONDENT
BURDEN
We
estimate
that
respondents
will
spend
2
hours
or
less
to
prepare
their
one­
time
application
letter.
If
as
many
as
5
small
refiners
choose
to
prepare
an
application
letter,
the
total
industry
burden
will
be
10
hours.

6(
b)
ESTIMATING
RESPONDENT
COST
If
as
many
as
5
small
refiners
prepare
applications
under
this
provision,
the
total
industry
cost
of
this
information
collection
is
10
hours
@
$
58/
hour,
or
$
580.
The
financial
benefit
to
a
refiner
of
the
adjustment
of
its
per­
gallon
cap
standard
will
offset
this
cost
by
many
times.

6(
c)
ESTIMATING
AGENCY
BURDEN
AND
COST
Agency
resources
for
responding
to
such
small
refiner
applications
will
be
negligible.

6(
d)
BOTTOM
LINE
BURDEN
HOURS
AND
COSTS
7
The
bottom
line
burden
hours
and
costs
for
the
respondents
are
as
given
in
the
table
below:

TABLE
1.
Small
Refiner
Information
Collection
Information
Collection
Activity
Mgr.
$
58/
hr
Tech.
$
32/
hr
Cler.
$
19/
hr
Total
Resp.
Hours
Labor
Cost/
Yr
Capital
Startup
Cost
O&
M
Cost
No.
of
Resp.
Total
Hours
Total
Cost
Application
for
cap
adjustment
2
0
0
2
0
0
0
5
10
$
580
6(
e)
REASONS
FOR
CHANGE
IN
BURDEN
This
additional
information
collection
allows
EPA
to
appropriately
approve
an
adjustment
to
an
eligible
small
refiner's
per­
gallon
cap
sulfur
standard.

6(
f)
BURDEN
STATEMENT
The
one­
time
reporting
burden
for
this
collection
of
information
is
estimated
to
be
2
hours
at
$
75/
hour.
This
is
the
estimated
time
to
prepare
the
application
letter
including
all
required
information.
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.
8
B.
COLLECTION
OF
INFORMATION
EMPLOYING
STATISTICAL
METHODS
Statistical
methods
are
not
used
in
this
information
collection.