Document ID: EPA-HQ-OAR-2003-0216-0008
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2006-06-02T04:00Z

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
Regulation
of
Fuels
and
Fuel
Additives:
Refiner
and
Importer
Quality
Assurance
Requirements
for
Downstream
Oxygenate
Blending
and
Requirements
for
Disposition
of
Pipeline
Interfaces.
The
current
OMB
control
number
is
2060­
0277.
The
EPA
number
for
this
proposed
ICR
is
1591.21.
The
docket
number
is
EPA­
HQ­
OAR­
2003­
0216.

(
b)
SHORT
CHARACTERIZATION/
ABSTRACT
Section
211(
k)
of
the
Clean
Air
Act
("
Act")
mandates
that
reformulated
gasoline
(
RFG)
which
meets
various
requirements
be
exclusively
sold
in
nine
statutory
control
areas
and
in
other
ozone
nonattainment
areas
that
"
opt­
in"
to
the
reformulated
gasoline
program.
The
Act
also
requires
EPA
to
regulate
the
production
and
sale
of
conventional
gasoline
(
non­
RFG)
throughout
the
rest
of
the
country.
Refiners
and
importers
of
gasoline
are
required
to
demonstrate
their
compliance
by
conducting
sampling
and
testing
of
the
gasoline
and
reporting
the
results
to
EPA's
Office
of
Transportation
and
Air
Quality.
See
40
CFR
Part
80,
subparts
D
through
F.
Previous
ICRs
in
this
1591
series
have
covered
start
up
costs
and
other
record
keeping,
reporting,
and
testing
requirements
associated
with
the
final
rule.

This
proposed
ICR
covers
burdens
and
costs
associated
with
the
following
proposed
actions:

 
Requirements
for
Transmix
Processing
and
Blending:
The
proposed
rule
would
codify
and
clarify
existing
practices
that
apply
to
transmix
processors
and
blenders.
Transmix
is
a
product
that
results
in
pipelines
where
two
dissimilar
petroleum
products
meet.
Most
of
the
associated
recordkeeping
falls
under
customary
business
practices
(
CBP)
or
is
already
covered
by
existing
ICRs
in
this
series;
however,
there
is
a
one­
time
petition
process
for
transmix
blenders
that
would
apply
to
their
quality
testing
programs.
At
this
time,
and
as
discussed
below
in
greater
detail,
we
estimate
that
this
burden
would
result
in
no
more
than
25
respondents.

 
Alternative
Method
of
Conducting
Quality
Assurance
Testing
Sampling
and
Testing
at
Downstream
Oxygen
Blending
Facilities:
The
proposed
rule
would
allow
refiners
and
importers
of
reformulated
gasoline
blendstock
for
oxygen
blending
(
RBOB)
the
option
of
conducting
a
quality
assurance
sampling
and
testing
program
for
an
entire
area
in
order
to
meet
regulatory
requirements.
This
program
would
be
carried
out
by
independent
surveyor
funded
by
industry
and
the
survey
plan
would
be
approved
by
2
EPA
in
advance.
Because
we
anticipate
that
petitions
will
be
submitted
on
an
area
basis,
we
expect
no
more
than
five
(
5)
respondents
for
a
one­
time
survey
petition
and
no
more
than
35
respondents
for
the
actual
survey
itself.

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
RFG
and
anti­
dumping
final
rule.
The
Act
specifically
provides
that
recordkeeping
and
reporting
requirements
are
among
the
tools
EPA
may
use
in
enforcement
of
the
provisions
of
§
211(
k)
and
also
provides
that
EPA
must
develop
an
enforceable
scheme.
Sections
114
and
208
of
the
Act
authorize
EPA
to
require
recordkeeping
and
reporting
regarding
enforcement
of
the
provisions
of
Title
II
of
the
Act.

(
b)
PRACTICAL
UTILITY/
USERS
OF
THE
DATA
The
practical
utility
and
use
of
the
collection
of
information
related
to
the
RFG
and
conventional
gasoline
have
been
established
in
the
ICR
for
the
RFG
and
anti­
dumping
final
rule.
The
notice
of
proposed
rulemaking
(
NPRM)
describes
the
information
collection
activities
related
to
transmix
and
downstream
oxygen
blending
in
greater
detail.
In
general,
the
NPRM
is
designed
to
grant
flexibility
to
refiners
and
importers
by
permitting
them
to
conduct
activities
normally
conducted
on
a
facility
basis
on
an
area
basis.
The
associated
information
collection
is
designed
to
ensure
compliance
on
an
area
basis.

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.
Many
recordkeeping
activities
are
already
conducted
as
part
of
customary
business
practice
(
CBP).

(
b)
PUBLIC
NOTICE
REQUIRED
PRIOR
TO
ICR
SUBMISSION
TO
OMB
The
proposed
ICR
changes
are
included
in
NPRM.
A
copy
of
the
NPRM
is
available
in
the
docket
and
will
be
submitted
for
publication
in
the
Federal
Register.
The
NPRM
is
being
published
with
an
accompanying
direct
final
rule,
as
we
do
not
expect
adverse
comment.
3
(
c)
CONSULTATIONS
Industry
was
consulted
in
making
the
assumptions
related
to
the
original
information
collection
burden
and
in
developing
the
NPRM
and
the
additional
information
requirements
that
this
proposed
ICR
are
based
on.
We
are
seeking
further
industry
comment
via
this
draft
supporting
statement
and
encourage
all
interest
parties
to
submit
comments
to
us.

(
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
RFG
and
antidumping
rule
are
approved
in
the
ICR
for
the
final
RFG
and
anti­
dumping
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
et.
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
affect
the
following
respondents:
petroleum
refiners
(
2911),
pipelines
(
4613),
gasoline
marketers
and
distributors
(
5171
and
5172),
gasoline
carriers
(
4212
and
4213)
and
terminals
(
4226).
Many
recordkeeping
activities
are
already
4
performed
in
the
normal
course
of
business
(
CBP).

(
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:

"
Gasoline"
means
any
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)
for
use
in
motor
vehicles
and
motor
vehicle
engines,
and
commonly
or
commercially
known
or
sold
as
gasoline.

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

"
Importer"
means
a
person
who
imports
gasoline,
gasoline
blending
stocks
or
components,
or
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).

"
Reformulated
Gasoline"
means
any
gasoline
whose
formulation
has
been
certified
under
40
CFR
80.40
and
which
meets
each
of
the
standards
and
requirements
prescribed
under
80.41.

"
Conventional
Gasoline"
means
any
gasoline
which
has
not
been
certified
under
40
CFR
80.40.
Definitions
related
to
transmix
appear
under
proposed
section
80.84
in
the
NPRM.
Under
the
proposed
section,
"
transmix"
means
an
interface
that
does
not
meet
the
specifications
of
a
fuel
that
can
be
used
or
sold
and
that
is
composed
of
any
combination
of
previously
certified
gasoline
(
including
previously
certified
gasoline
blendstocks
that
become
gasoline
solely
upon
the
addition
of
an
oxygenate),
distillate
fuel,
or
gasoline
blendstocks
that
are
suitable
for
use
as
a
blendstock
without
further
processing.

The
NPRM
specifies
that
transmix
producers
must
generate
product
transfer
documents
and
retain
them
for
five
(
5)
years.
Transmix
producers
and
oxygen
blenders
must
retain
records
related
to
sampling
and
testing
activities
for
five
(
5)
years.
These
activities
are
already
covered
by
the
existing
RFG
and
anti­
dumping
ICR
and,
in
addition,
these
activities
are
expected
to
be
conducted
in
the
normal
course
of
business
(
CBP).

There
is
a
new
respondent
burden
associated
with
transmix
blenders
submitting
petitions
for
their
quality
assurance
testing
programs.
This
burden
is
a
one­
time
occurrence.
There
is
a
one­
time
burden
for
applications
related
to
petitions
and
a
continuing
survey
burden
associated
with
downstream
oxygen
blending.
These
burdens
are
estimated
in
"
ESTIMATING
THE
5
BURDEN
AND
COST
OF
THE
COLLECTION,"
below.
There
is
an
Agency
burden
associated
with
reviewing
and
acting
upon
petitions.
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.
6
(
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.
Most
of
the
information
submitted
to
the
Agency
under
the
RFG
and
anti­
dumping
program
is
confidential.
It
is
stored
in
a
secure
area
and
on
secure
databases.

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

(
c)
SMALL
BUSINESS
FLEXIBILITY
This
proposed
rule
will
grant
flexibility
to
all
affected
parties,
regardless
of
size.

(
d)
COLLECTION
SCHEDULE
There
is
no
change
in
collection
schedules
relative
to
the
ICR
for
the
RFG
and
antidumping
final
rule
as
a
result
of
this
proposed
ICR
modification.

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
among
the
same
or
similar
entities
to
develop
estimates
of
the
burden
associated
with
this
modification.

(
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
2006.
Using
this
method,
the
following
wages
and
benefits
apply
by
category:
7
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
downstream
oxygen
blending,
which
would
be
conducted
by
an
outside
surveyor
hired
by
industry.
There
are
no
capital/
start­
up
costs
associated
with
this
ICR.

(
c)
ESTIMATING
AGENCY
BURDEN
AND
COST
The
annual
Agency
burden
is
determined
using
the
2006
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
=
$
80
Technical
Staff
(
GS­
13)
=
$
60
Clerical
Staff
(
GS­
5)
=
$
25
We
have
assumed
that
each
response
will
require
3.5
hours
of
technical
staff
time
to
review
and
prepare
the
written
response.
It
is
estimated
that
manager
will
be
required
to
expend
0.25
hour
per
response
and
that
the
clerical
staff
will
expend
0.25
hour
per
response.
Contractors
will
not
be
used
to
handle
these
applications
and
are
not
included.
8
The
total
annual
Agency
burden
hours
are
estimated
as
follows:

Table
A
 
Transmix­
related
Petitions
Activity
No.
of
Responses
Manager
Hours
per
Response
Technical
Hours
per
Response
Clerical
Hours
per
Response
Total
Agency
Hours
Evaluate
Data
25
0
2.5
0
62.5
Prepare
And
Send
Response
25
0.25
1
0.0
31.25
Store
Data
25
0
0
0.25
6.25
Total
25
0.25
3.5
0.25
100
The
total
burden
for
the
Agency
per
response
would
be
$
237
(
rounded
up
to
the
next
dollar).
The
total
burden
for
the
Agency
for
25
responses
would
be
$
5925.

Table
B
­
Downstream
Oxygenate
Blending­
related
Petitions
Activity
No.
of
Responses
Manager
Hours
per
Response
Technical
Hours
per
Response
Clerical
Hours
per
Response
Total
Agency
Hours
Evaluate
Data
5
0
2.5
0
12.5
Prepare
And
Send
Response
5
0.25
1
0.0
6.25
Store
Data
5
0
0
0.25
1.25
Total
5
0.25
3.5
0.25
20
The
total
burden
for
the
Agency
per
response
would
be
$
237
(
rounded
up
to
the
next
dollar).
The
total
burden
to
the
Agency
for
five
(
5)
responses
would
be
$
1185.

(
d)
ESTIMATING
THE
RESPONDENT
UNIVERSE
We
were
able
to
estimate
the
number
of
regulated
entities
drawing
upon
our
experience
regulating
the
same
entities.
We
have
assumed
no
more
than
25
parties
to
submit
transmix
petitions,
no
more
than
five
(
5)
petitions
related
to
downstream
oxygen
blending
and
not
more
than
35
respondents
related
to
the
oxygen
survey
requirement.
9
(
e)
BOTTOM
LINE
BURDEN
HOURS
AND
COSTS
The
annual
estimates
in
burden
hours
and
costs
associated
with
this
direct
final
rule
are
as
follows:

Annual
Respondent
Burden
Hours
&
Costs
(
Including
Non­
Postage
"
Other
Costs")
1
Collection
Activity
#
Respondents
#
Reports
per
Respondent
Total
#
of
Reports
#
Hours
per
Report
Total
Hours
Total
Costs
@
$
71/
hour
expressed
as
$
Per
Response
­­­
$
Total
for
all
Responses
Non­
Postage
Other
Costs
(
O&
M)
Expressed
as
$
Total
for
all
Responses
Petitions
for
Transmix
Blenders
25
1
25
80
2,000
$
5,680
­­­
$
142,000
0
Petitions
related
to
Downstream
Oxygen
Blending
5
1
5
60
300
$
4,260
­­­
$
21,300
0
Surveys
related
to
Downstream
Oxygen
Blending
35
1
35
20
700
$
1,420
­­­
$
49,700
$
220,000
TOTALS
65
­­­
65
­­­
3,000
$
213,000
$
220,000
1
Please
note
that
costs
are
not
expressed
in
thousands
of
dollars
as
is
the
usual
custom
for
supporting
statements,
but
in
actual
dollars.
Because
some
amounts
are
relatively
small,
it
is
easier
in
this
case
to
use
actual
dollars.
TOTALS
FROM
THE
TABLE:
TOTAL
NO.
OF
REPORTS:
65
TOTAL
BURDEN
HOURS:
3,000
TOTAL
LABOR
COSTS:
$
213,000
TOTAL
NON­
POSTAGE
COSTS
(
for
PURCHASED
SERVICES):
$
220,000
10
(
f)
REASON
FOR
CHANGE
IN
BURDEN
The
proposed
change
in
burden
is
due
to
issuance
of
an
NRPM
affecting
transmix
and
downstream
oxygen
blending.

(
g)
BURDEN
STATEMENT
The
average
Agency
burden
in
hours
per
response
for
this
ICR
is
estimated
at
four
(
4)
hours.
The
average
respondent
burden
in
hours
per
response
for
this
ICR
is
estimated
at
47
hours.
2
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
2003­
0216.
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
reformulated
and
anti­
dumping
regulations.

2
The
average
respondent
burden
is
the
total
number
of
hours
from
the
"
Annual
Respondent
Burden
Hours
&
Costs"
table
on
page
10,
divided
by
the
total
number
of
reports,
rounded
up
for
simplicity.