Document ID: EPA-HQ-OAR-2012-0223-0041
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2012-12-19T05:00Z

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:  Recordkeeping and Reporting for Amended Heating Oil
Definition under the Renewable Fuels Standard 

EPA Number:      2462.01

b. Short characterization:

	With this proposed information collection request (ICR), the Office of
Air and Radiation (OAR) is seeking permission to require certain
recordkeeping and reporting in connection with an amendment to the
definition of “heating oil” under the renewable fuel standard (RFS2)
program.  The recordkeeping and reporting changes are expected to affect
11 non-Federal respondents, including ten producers and one importer.   

	 EPA is issuing a direct final rule to amend the definition of heating
oil in 40 CFR 80.1401   SEQ CHAPTER \h \r 1 in the RFS2 program, under
section 211(o) of the Clean Air Act.  This amendment will expand the
scope of renewable fuels that can generate Renewable Identification
Numbers (RINs) as heating oil to include fuel oil produced from
qualifying renewable biomass that will be used to generate heat to warm
buildings or other facilities where people live, work, recreate, or
conduct other activities.  Fuel oils used to generate process heat,
power, or other functions will not be included in the amended
definition.  Producers or importers of fuel oil that meets the amended
definition of heating oil will be allowed to generate RINs, providing
that the fuel oil meets the other requirements specified in the RFS
regulations. This amendment will not modify or limit fuel included in
the current definition of heating oil at §80.2(ccc).  The direct final
rule does include new recordkeeping and reporting items applicable to
producers or importers of fuel oil that meet the amended definition. 
These are described below.  

	It is useful for parties commenting on this proposed ICR to review the
existing, approved RFS2 information collections related to the RFS2
program, as identified by OMB Approval Number and expiration date:  

Renewable Fuels Standard Program:  Petition and Registration, OMB
Approval Number 2060-0637, Expires 03/31/2013

Renewable Fuels Standard, OMB Approval Number 2060-0640, Expires
7/31/2012

	

	

2.  Need For, and Use of, the Collection

Authority for the Collection

	  SEQ CHAPTER \h \r 1 Sections 114 and 208 of the Clean Air Act (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.  

	

	b. Practical Utility/Uses of the Data

	The information collected via registrations and reports is used by EPA
to determine compliance with the RFS2 program.  Records retained by
regulated parties support compliance information submitted to EPA.  	

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 submit the ICR to OMB for review, along with the direct final
rule.  This supporting statement is being docketed in order to permit
interested parties to fully comment upon the costs associated with the
direct final rule.  

	c. Consultations

	EPA is providing an opportunity for notice and comment regarding this
proposed ICR.  To date, we are aware of only one producer who would be
subject to this direct finale rule.  However, we reasonably anticipate
that other RIN generators may also choose to engage in activities that
may make them subject to the proposed ICR for this rule.  We encourage
all interested parties to provide us with comments as to our burden
estimates.        

	d. Effects of Less Frequent Data Collection

	The frequency of response is controlled by the submitter of the
information.    

	e.	General Guidelines

	This rule does not exceed any of the OMB guidelines.  

	f. Confidentiality

	EPA informs respondents that they may assert claims of business
confidentiality for any or all of the information they submit. 
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

	

	Individual reporting data may be claimed as sensitive and will be
treated as confidential information in accordance with the procedures
outline in 40 CFR Part 2.

4.	The Respondents and the Information Requested

	The parties subject to RFS2 information collections fall into the
following general industry categories:  petroleum refineries
(324110/2911), ethyl alcohol manufacturers (325193/2869), other basic
organic chemical manufacturing (325110/2869), chemical and allied
products merchant wholesalers (426990/5169), petroleum bulk stations and
terminals (422710/5171), petroleum and petroleum products merchant
wholesalers (422720/5172), and other fuel dealers (454319/5989).

Using the terminology associated with the RFS2 Final Rule and associated
ICRs, we have assumed the following classes of party would have new
recordkeeping and reporting covered by this supporting statement.  The
total universe of parties is derived from the existing approved RFS2
ICRs, cited above.  

Producers of renewable fuels - we anticipate that 10 of 1,010 producers,
or .01%, will engage in activities that will make them subject to new
information collection requirements outlined in this proposed ICR.

Importers - we anticipate that one of the approximately 120 importers
will engage in activities that will make them subject to this ICR. 

	 

	b.	Information Requested

		i.	Registration

	For the purpose of registration, EPA is requiring producers of the
expanded fuel oil types to submit to EPA all existing contracts with
their prospective clients for specified quantities of fuel oil that the
prospective client intends to purchase from the producer for the purpose
of heating homes or buildings.  The submission of the contracts will
help EPA to verify the potential volumes the producer is requesting to
register under the program for RIN generation. EPA recognizes that the
producer may not have all contracts set up prior to registration that
will equate to the facility’s permitted capacity or actual peak
capacity as defined in §80.1401 of the rule that is currently used by
EPA to establish a facility’s baseline volume for registration
purposes.  EPA also recognizes that it will not be practical for program
implementation to require these producers to continually submit new and
revised contracts for every client to the EPA, and for EPA to
continually update the producer’s registered baseline volume based on
these contracts to reflect every gallon of fuel oil produced up to the
facility’s permitted capacity or actual peak capacity.  Therefore, EPA
is allowing the producer of the expanded fuel oil types to establish
their facility’s baseline volume in the same manner as all other
producers under the RFS program, e.g., based on the facility’s
permitted capacity or actual peak capacity. However, we are also
adopting additional requirements for the submission of contracts
executed prior to registration, as a means to verify the initial volumes
that will be sold for heating purposes as defined in paragraph (2) of
the amended definition of heating oil.  EPA is also requiring
submissions of new and revised contracts that are executed after
registration on an annual basis as part of the producer’s update to
their registration.  Additionally, we are adopting new recordkeeping,
PTD and reporting requirements discussed below that will be used as a
means for verification of the remaining gallons up to the facility’s
registered baseline volume.  The registration requirements are detailed
in the registration section in §80.1450(b)(1)(ix).

	ii.	Recordkeeping, Product Transfer Documents and Reporting

	For the purpose of continued verification after registration, EPA is
adopting additional requirements for recordkeeping in §80.1454(b)(6)
and (7), PTDs in §80.1453(d) and reporting requirements in
§80.1451(b)(1)(ii)(T) for the expanded fuel oil types. 

	The recordkeeping, PTD and reporting requirements will ensure that the
expanded fuel oil types that are used to generate RINs are actually used
in a qualifying application.  The regulations will require contracts
between the fuel oil producer and the final end user for the legal
transfer of title of a specific volume of fuel oil that is designated
for use, and is actually used, only for the purpose of heating interior
spaces of homes or buildings to control ambient climate for human
comfort.  For instance, the additional recordkeeping requirements will
stipulate that the producer of fuel oils maintain documents associated
with each gallon of fuel oil that is under contract for sale and is sold
to all of its clients, and affidavits from the client stipulating that
they are using the fuel oil for purposes of heating interior spaces of
buildings where people live, work, recreate, or conduct other activities
to control ambient climate for human comfort.  Additionally, producers
are required to maintain all documents and records submitted for
registration and registration updates as part of the producer’s
recordkeeping requirements for the expanded fuel oil types they register
for RIN generation. EPA believes the producer’s maintenance of these
records will help to substantiate continued tracking and verification
that the end use of the fuel oil is in compliance with the stipulations
of the expanded definition of heating oil.  

	The additional PTD requirement stipulates that the PTD used to transfer
ownership of the renewable fuel must contain the statement: “This
volume of renewable fuel is designated and intended to be used to heat
interior spaces of homes or buildings. Do not use for any other
purpose.” EPA believes that this PTD requirement would help to ensure
that each gallon of fuel oil that is transferred from the producer to
the end user is used for qualifying purposes under the expanded
definition of heating oil.

	The additional reporting requirements will stipulate that the producer
of fuel oils report to EPA the total quantity of the fuel oils produced
and sold to all its clients for qualifying purposes and the total volume
produced or sold that did not qualify for RIN generation, including an
explanation of why these volumes of fuel oil did not qualify and to what
entity were the volumes eventually sold.  EPA believes the additional
requirement to report the total gallons sold by the producers of fuel
oils as well as the total gallons produced or sold that did not qualify
for RIN generation will enable EPA to verify that the producers are
producing and selling RIN-generating fuel oil that falls within their
allowable volume that is registered under the program and that it is
used in a qualified application.   

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

a.	Agency Activities

All reported registration and compliance reports will be reviewed by
EPA.

EPA may discuss information received with parties or request further
information.  

The data will be stored.

b. 	Collection and Methodology and Management

	Because of the subjective (i.e., produce specific) nature of the
additional information requested, there can be no standard forms. 
However, EPA’s regulations guide the regulated parties in what to
submit and retain.  PTDs are standard formats and are customary business
practice within the fuel industry.    

	

c.	Small Entity Flexibility

	This collection will not adversely affect small entities.  We expect
this proposed ICR to affect very few parties, who elect to produce fuel
subjected to the amended definition of heating oil.  

d.	Collection Schedule

	The collection schedule is driven by the party.  Therefore it is best
described as “infrequent” or “episodic.”  

6.	Estimating the Burden and Cost of Collection

a.	We drew upon experience implementing similar regulations among the
same entities to develop estimates of the burden associated with this
collection.  As described above, we anticipate that 10 producers of
renewable fuel and one producer may be subject to the proposed
recordkeeping and reporting.  

   

b.	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% annual inflation factor applied to bring the values to the
present.  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 proposed ICR:

Total Employer Cost

Managerial		$108 per hour

Technical		$71 per hour

Clerical		$49 per hour

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. 
We estimate the following burden:  



Table I – Detailed Estimates –RIN Generators (10 producers, one
importer) of Renewable Fuel Meeting the Amended Heating Oil Definition; 

broken down by party.

a. PRODUCERS

Collection 

Activity	Total

Number 

of Respondents	Number 

of Responses per Respondent	Total Number of Responses

(All 

Respond-ents)	Hours Per Response	Total 

Hours

(All 

Respon-dents)	Total 

Cost

$

(All 

Respon-dents)

New registration activity  - provision of existing contracts to EPA
under 

80.1450(b)(1)(ix)(A	10	1	10	4	40	$2840

New registration activity – provision of affidavit from the producer
under 80.1450(b)(1)(ix)(B) 	10	1	10	4	40	$2840

New registration activity – provision of affidavit from the end user
under 80.1450(b)(1)(ix)(C)	10	1	10	4	40	$2840

New registration activity – provision of list of clients under
80.1450(b)(1)(ix)(D)	10	1	10	4	40	$2840

New registration activity – provision of analysis/specification for
fuel by producer under 

80.1450(b)(1)(ix)(E)	10	1	10	4	40	$2840

Affixing of required statement for use on PTDs (note:  codes are not
appropriate, since statement must appear) under 80.1453	10	12 (assumes 3
customers and 4 quarterly shipments per respondent)	120	.08 (5 minutes
per response)	9.6	$681

Retention of records related to registration under 80.1454(b)(6)	10	12
(assumes a monthly filing schedule)	120	1	120	$8520

Retention of records related to contracts, clients, certificate of
analysis, under 80.1454(b)(7)	10	12 (assumes a monthly filing schedule)
120	1	120	$8520

TOTAL

	  =SUM(ABOVE)  410 

  =SUM(ABOVE)  449.6 	  =SUM(ABOVE)  $31921.00 

b. IMPORTERS

Collection Activity	Total Number 

of Respondents

	Number of Responses per Respondent	Total Number of Responses

(All

Respond-ents)	Hours Per Response	Total 

Hours

(All 

Respon-dents)	Total 

Cost

$

(All

Respon-dents)

New registration activity  - provision of existing contracts to EPA
under 

80.1450(b)(1)(ix)(A	1	1	1	4	4	$284

New registration activity – provision of affidavit from the producer
under 80.1450(b)(1)(ix)(B) 	1	1	1	4	4	$284

New registration activity – provision of affidavit from the end user
under 80.1450(b)(1)(ix)(C)	1	1	1	4	4	$284

New registration activity – provision of list of clients under
80.1450(b)(1)(ix)(D)	1	1	1	4	4	$284

New registration activity – provision of analysis/specification for
fuel by producer under 

80.1450(b)(1)(ix)(E)	1	1	1	4	4	$284

Affixing of required statement for use on PTDs (note:  codes are not
appropriate, since statement must appear) under 80.1453	1	12 (assumes 3
customers and 4 quarterly shipments per respondent)	12	.08 (5 minutes
per response)	0.96	$68

Retention of records related to registration under 80.1454(b)(6)	1	12	12
(assumes a monthly filing schedule)	1	12	$852

Retention of records related to contracts, clients, certificate of
analysis, under 80.1454(b)(7)	1	12	12

(assumes a monthly filing schedule)	1	12	$852

TOTAL

	  =SUM(ABOVE)  41 

  =SUM(ABOVE)  44.96 	  =SUM(ABOVE)  $3192.00 

c. Estimating the Agency Burden and Cost

	The Agency burden consists of 0.05 of one GS-13 engineer (estimated at
$161,000 including overhead to review/respond/store data, for a total of
$8,050.    

d.	Estimating the Respondent Universe

	We were able to estimate the number of regulated entities drawing upon
experience regulating the same entities.  

e.	Bottom Line Annual Burden Hours and Costs

	We estimate a total annual burden for all RIN generators (10 producers
plus one importer) of 495 hours and $35,145.  There are a total of 11
respondents.  Therefore, there is an annual burden per respondent of 45
hours and $2869 per respondent.  Note that figures have been rounded up
to the next whole hour or dollar.  

f.	Reason for Change in Burden

	This is a new information collection.  

g.	Burden Statement

	

	We estimate an annual reporting burden of 21 hours per respondent and
an annual recordkeeping burden of 24 hours, yielding a total per
respondent burden of 45 hours.  The respondents for this information
collection are RIN generators, of whom ten are assumed to be producers
and one is assumed to be an importer, as described above.  

	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   SEQ CHAPTER \h \r 1 Interested parties are
urged to comment on the Agency's need for this information collection,
the accuracy of the provided burden estimates, and any suggested methods
for minimizing respondent burden, including the use of automated
collection technique.  

	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, EPA has established a public docket for this rule,
which includes this ICR.   Submit any comments related to the ICR to EPA
and OMB.  Send comments to OMB at the Office of Information and
Regulatory Affairs, Office of Management and Budget, 725 17th Street,
NW, Washington, DC 20503, Attention: Desk Office for EPA.  Since OMB is
required to make a decision concerning the ICR between 30 and 60 days
after publication in the Federal Register, a comment to OMB is best
assured of having its full effect if OMB receives it within 30 days of
publication.  The final rule will respond to any OMB or public comments
on the information collection requirements contained in this proposal.	

Part B of the Supporting Statement

This part of the supporting statement is not applicable.

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