Document ID: EPA-HQ-OAR-2003-0012-1010
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2004-04-27T04:00Z

Supporting
Statement
for
Information
Collection
Request
Recordkeeping
and
Reporting
Requirements
for
the
Fuel
Quality
Regulations
for
Nonroad,
Locomotive,
and
Marine
Diesel
Fuel
EPA
ICR
1718.07
Spring
2004
Assessment
and
Standards
Division
Office
of
Transportation
and
Air
Quality
Office
of
Air
and
Radiation
U.
S.
Environmental
Protection
Agency
1
1.
IDENTIFICATION
OF
THE
INFORMATION
COLLECTION
1(
a)
Title
Of
The
Information
Collection
ICR:
Recordkeeping
and
Reporting
Requirements
for
the
Fuel
Quality
Regulations
for
Nonroad,
Locomotive,
and
Marine
Diesel
Fuel.
OMB
Control
Number:
2060­
0308
1(
b)
Short
Characterization/
Abstract
Nonroad
diesel
engines
are
the
largest
remaining
contributor
to
the
overall
mobile
source
emissions
inventory.
We
have
already
taken
steps
to
dramatically
reduce
emissions
from
lightduty
vehicles
and
engines
through
the
Tier
2
and
2007
highway
diesel
programs.
With
expected
growth
in
the
nonroad
sector,
the
relative
emissions
contribution
is
projected
to
be
even
larger
in
later
years.
This
final
rule
sets
out
emissions
standards
for
nonroad
engines
used
in
construction,
farming,
and
mining
operation
that
will
achieve
over
90%
reduction
in
emissions
levels
from
today's
engines.
Additionally,
sulfur
levels
in
nonroad
diesel
fuel
will
be
reduced,
including
diesel
fuel
used
in
locomotive
and
marine
applications,
first
to
500
parts
per
million
(
ppm)
and
then
further
to
15
ppm.
Taken
together,
controls
included
in
this
final
rule
would
result
in
large
public
health
and
welfare
benefits.
As
was
the
case
with
the
Tier
2
and
2007
highway
diesel
programs,
this
program
will
treat
vehicles
and
fuels
as
a
system,
combining
requirements
for
much
cleaner
vehicles
with
requirements
for
much
lower
levels
of
sulfur
in
diesel
fuel.

This
nonroad
diesel
final
rule
sets
out
new
engine
exhaust
emissions
standards,
sulfur
control
requirements
for
nonroad
diesel
fuel,
and
new
engine
emissions
test
procedures.

The
pollution
emitted
by
diesel
engines
contributes
greatly
to
our
nation's
continuing
air
quality
problems.
EPA
is
introducing
a
rule
that
would
establish
standards
for
the
quality
of
nonroad,
locomotive
and
marine
diesel
fuel.
These
fuel
standards
by
themselves
will
provide
dramatic,
cost
effective
emission
benefits.
However,
in
addition,
new
emissions
standards
for
nonroad
engines
will
apply
starting
with
model
year
2008.
Since
the
new
technology
developed
will
require
low
sulfur
diesel
fuel
(
15
ppm
sulfur
or
less),
the
regulations
require
the
availability
of
this
fuel
starting
by
no
later
than
June
1,
2010.
The
overall
reduction,
however,
is
accomplished
in
two
steps,
with
the
first
step
to
500
ppm
sulfur
occurring
on
June
1,
2007
The
diesel
sulfur
rule
contains
many
types
of
flexibility
aimed
at
reducing
burdens
on
small
businesses
and
those
faced
with
particular
hardships.
The
fuel
program
design
will
be
2
implemented
stepwise
for
the
years
2007,
2010
and
2014
and
beyond.
By
2014,
however,
these
flexibilities
will
end,
and
all
NRLM
diesel
fuel
produced
must
meet
the
final
15
ppm
standard.
The
only
exception
is
downgrade
produced
in
the
distribution
system,
which
can
continue
to
be
sold
into
the
locomotive
and
marine
markets,
if
it
meets
the
500
ppm
sulfur
cap.

This
Information
Collection
Request
(
ICR)
would
specifically
address
the
requirements
to
ensure
compliance
and
make
ICR
additions
to
the
existing
fuels
regulations
applicable
to
nonroad,
locomotive
and
marine
diesel
fuel.
The
additional
requirements
covered
under
this
ICR
are
included
in
the
final
rule.

The
information
under
this
ICR
will
be
collected
by
EPA's
Transportation
and
Regional
Programs
Division,
Office
of
Transportation
and
Air
Quality,
Office
of
Air
and
Radiation
(
OAR),
and
by
EPA's
Air
Enforcement
Division,
Office
of
Regulatory
Enforcement,
Office
of
Enforcement
and
Compliance
Assurance
(
OECA).
The
information
collected
will
be
used
by
EPA
to
evaluate
compliance
with
nonroad,
locomotive,
and
marine
diesel
sulfur
control
requirements
under
the
final
rule.
This
oversight
by
EPA
is
necessary
to
ensure
attainment
of
the
air
quality
goals
of
the
program.

The
scope
of
the
recordkeeping
and
reporting
requirements
for
each
type
of
party
(
e.
g.,
refiners,
distributors,
marketers,
or
retailers
of
diesel),
and
therefore
the
cost
to
that
party,
reflects
the
party's
opportunity
to
create,
control
or
alter
the
sulfur
content
of
diesel
fuel.
As
a
result,
refiners
and
importers
will
generally
have
more
requirements
than
parties
downstream
from
the
diesel
production
or
import
point,
such
as
retailers.
EPA
has
made
every
effort
to
minimize
recordkeeping
and
reporting
burdens
and
to
ensure
that
parties
do
not
have
to
submit
duplicate
information.
For
example,
a
refiner
or
importer
who
has
already
registered
under
the
reformulated
gasoline
and
anti­
dumping
program
(
ICR
number
1591.13,
OMB
control
number
2060­
0277)
is
not
required
to
resubmit
the
same
information
for
purposes
of
this
program.

2.
NEED
FOR
AND
USE
OF
THE
COLLECTION
2(
a)
Need/
Authority
For
The
Collection
EPA's
nonroad
diesel
rule
establishes
a
comprehensive
national
control
program
that
will
regulate
equipment
and
its
fuel
as
a
single
system.
As
part
of
this
program,
new
emissions
standards
for
nonroad
engines
will
begin
to
take
effect
in
model
year
2008.
These
standards
are
based
on
the
use
of
highefficiency
catalytic
exhaust
emission
control
devices
or
3
comparably
effective
advanced
technologies.
Because
these
devices
are
damaged
by
sulfur,
we,
in
parallel,
are
reducing
the
level
of
sulfur
in
diesel
fuel
significantly
at
appropriate
times.
The
program
provides
substantial
flexibility
for
refiners,
especially
small
refiners,
and
for
manufacturers
of
engines
and
equipment.
These
options
will
ensure
that
there
is
widespread
availability
and
supply
of
the
low
sulfur
diesel
fuel
from
the
very
beginning
of
the
program
and
that
high
sulfur
and
low
sulfur
fuels
are
segregated
at
all
points
in
the
distribution
system.
This
rule
also
provides
for
exemptions,
upon
application,
for
research,
development,
and
testing
purposes.

This
supporting
statement
describes
the
recordkeeping
and
reporting
requirements
and
the
associated
costs
to
various
parties
(
e.
g.,
refiners,
importers,
distributors,
and
retailers
of
diesel
fuel).
These
requirements
are
necessary
to
enable
the
Administrator
to:

(
1)
Identify
the
sources
of
nonroad,
locomotive,
and
marine
(
NRLM)
diesel
fuel;
and
(
2)
Ensure
that
these
source
parties
comply
with
the
standards
and
limitations
of
the
rules.

(
3)
Ensure
that
these
parties
do
not
utilize
the
provisions
of
this
rule
to
circumvent
compliance
with
the
2007
highway
diesel
fuel
rule.

An
effective
enforcement
scheme
is
necessary
to
ensure
that
the
environmental
goals
of
the
nonroad
diesel
program
are
met,
and
that
those
complying
with
the
requirements
in
good
faith
are
not
disadvantaged
by
noncomplying
parties.
The
nonroad
diesel
program
requirements
create
a
significant
economic
incentive
for
noncompliance.

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.
Relevant
portions
of
the
statutes
referenced
above
can
be
found
in
the
Attachment.
The
current
regulations
applicable
to
nonroad,
locomotive
and
marine
diesel
fuel
can
be
found
in
40
CFR
Part
80,
Regulation
of
Fuels
and
Fuel
Additives.
The
regulations
associated
with
the
information
collection
are
contained
in
the
final
rule
for
the
nonroad
diesel
rulemaking.

2(
b)
Practical
Utility/
Users
of
the
Data
EPA
will
use
the
information
contained
in
the
reports
required
by
this
information
collection
to
evaluate
the
4
compliance
of
parties
involved
in
the
production,
importation
and
distribution
of
diesel
with
the
nonroad,
locomotive,
and
marine
diesel
fuel
requirements.
These
reports
will
also
be
used
by
EPA
to
target
compliance
investigations.
Any
baseline
information
submitted
by
refiners
in
order
to
generate
early
credits
will
be
used
to
ensure
that
credits
generated
are
correctly
determined.
PTDs
maintained
by
parties
in
the
diesel
fuel
distribution
system
and
records
related
to
diesel
blending
will
be
used
to
evaluate
the
compliance
of
the
parties
that
maintain
the
records,
and
to
help
evaluate
upstream
compliance.
Fuel
batch
designation
and
volume
records
and
reports
will
be
used
to
evaluate
compliance
with
both
the
final
nonroad
standards
and
the
final
highway
diesel
fuel
standards.

3.
NONDUPLICATION,
CONSULTATIONS,
AND
OTHER
COLLECTION
CRITERIA
3(
a)
Nonduplication
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.

To
minimize
the
information
collection
burden,
refiners
and
importers
who
are
registered
under
the
RFG
program
(
40
CFR
80.76)
are
considered
to
have
satisfied
the
registration
requirements
under
the
diesel
rule.
This
also
applies
to
the
registration
requirements
for
refiners
subject
to
the
small
refiner
or
temporary
hardship
relief
provisions.

3(
b)
Public
Notice
Prior
to
Submission
to
OMB
We
published
a
proposed
rulemaking
in
the
Federal
Register
on
May
23,
2003
regarding
requirements
for
low
sulfur
nonroad
diesel
fuel.
We
have
received
comments
on
several
issues
related
to
information
collection.
The
most
significant
of
these
comments
were
recommendations
from
representatives
for
all
parts
of
the
fuel
production
and
distribution
system
(
e.
g.,
refiners,
pipelines,
terminals,
wholesalers,
retailers)
to
adopt
the
socalled
designate
and
track
approach
for
compliance
assurance
rather
than
the
proposed
baseline
approach.
The
designate
and
track
approach,
which
we
have
indeed
adopted
in
response
to
comments
for
the
final
rule,
requires
additional
recordkeeping
and
reporting
of
fuel
receipts
and
transfers
throughout
the
distribution
system.
However,
in
exchange
it
provides
fuel
distributors
with
considerable
flexibility
in
the
fungible
distribution
of
similar
fuels.
Industry
assured
the
Agency
that
these
records
were
analogous
to
records
that
were
already
kept
as
5
a
part
of
normal
business
practices
and
therefore
would
not
represent
a
significant
additional
burden.
This
ICR
reflects
the
final
designate
and
track
provisions.

We
received
comment
that
we
should
only
require
the
reporting
of
either
cetane
or
aromatics
content,
not
both.
For
the
final
rule,
we
have
in
fact
dropped
the
reporting
requirement
for
both
of
these
fuel
parameters.

3(
c)
Consultations
EPA
held
a
series
of
in
depth
meetings
and
discussions
with
representatives
for
all
sectors
of
the
diesel
fuel
distribution
system
in
developing
the
recordkeeping
and
reporting
provisions
that
comprise
the
designate
and
track
program
and
are
reflected
in
this
information
collection
request.
The
final
regulations,
and
this
ICR,
reflect
the
input
and
general
agreement
reached
with
industry
of
the
appropriate
and
necessary
recordkeeping
and
reporting
elements,
while
avoiding
unnecessary
burden.
For
example,
the
compliance
periods
were
adjusted
to
be
consistent
with
internal
industry
accounting
periods.

As
part
of
its
effort
to
comply
with
the
requirements
of
the
Small
Business
Regulatory
Enforcement
Fairness
Act
(
SBREFA)
requirements,
EPA
met
several
times
with
small
entity
representatives.
Additionally,
EPA
convened
an
intergovernmental
panel,
in
accordance
with
the
SBREFA,
which
met
with
small
entity
representatives
and
made
specific
recommendations
to
EPA
regarding
the
impact
of
diesel
sulfur
control
on
small
businesses.
These
recommendations
were
carefully
considered
by
EPA
in
developing
the
final
rules
and
the
specific
provisions
for
qualifying
small
refiners.
A
copy
of
the
Panel's
report
is
available
in
the
docket
for
this
regulatory
action.
The
Panel
report
contains
a
list
of
the
fuel
industry's
participating
small
entity
representatives,
and
provides
a
summary
of
their
comments.

3(
d)
Effect
of
Less
Frequent
Collection
The
diesel
rule
requires
refiners,
importers
and
distributors
to
submit
annual
reports,
which
will,
by
the
information
contained
therein,
demonstrate
a
party's
compliance
with
the
applicable
sulfur
standards.
Additionally,
during
the
initial
implementation
period
(
June
2007
to
May
2010)
submission
of
quarterly
reports
would
be
required.
Less
frequent
submittal
of
such
reports
would
severely
hinder
EPA's
ability
to
monitor
compliance,
and
would
likely
lead
to
noncompliance.

3(
e)
General
Guidelines
This
information
collection
activity
complies
with
the
6
guidelines
in
5
CFR
1320.6,
except
that
respondents
are
required
to
keep
certain
records
for
longer
than
three
years.
Specifically,
all
parties
are
required
to
keep
PTDs
and
records
of
quality
assurance
testing
(
if
conducted)
for
five
years.
Refiners,
importers
and
fuel
distributors
are
also
required
to
keep
their
compliance
records
for
five
years.
The
designation
records
and
PTD
information
will
facilitate
EPA's
identification
of
the
source
of
any
diesel
fuel
found
to
be
in
violation
of
the
sulfur
standard.
These
recordkeeping
requirements
should
impose
little
additional
burden.
Five
years
is
the
applicable
statute
of
limitations
for
fuel
programs.
See
28
U.
S.
C.
2462.

Refiners,
fuel
distributors
and
importers
will
be
submitting
a
limited
amount
of
proprietary
information
in
their
annual
reports.
Those
submitting
a
baseline
or
applying
for
one
of
the
flexibility
options
such
as
small
refiner,
or
temporary
relief
provisions,
will
be
submitting
additional
proprietary
information.

This
type
of
information
has
been
collected
in
the
past
and
will
be
safeguarded
in
the
same
manner
as
data
required
by
other
EPA
directives.
Pertinent
information,
whether
kept
by
the
respondent
or
by
a
contractor,
is
subject
to
auditing
by
EPA.
Consequently,
EPA
officials
will
require
entry
and
access
to
facilities.

3(
f)
Confidentiality
As
discussed
in
3(
e)
above,
proprietary
information
will
be
submitted
by
refiners,
distributors
and
importers.
Confidentiality
for
such
information
is
covered
by
established
Agency
procedures
and
the
regulations
at
40
CFR
Part
2.

3(
g)
Sensitive
Questions
No
questions
of
a
sensitive
nature
are
asked
in
this
information
collection.

4.
THE
RESPONDENTS
AND
THE
INFORMATION
REQUESTED
4(
a)
Respondents/
SIC
Codes
The
respondents
to
this
information
collection
are:
­
Refiners
(
both
domestic
and
foreign
refiners
who
manufacture
diesel
for
use
in
the
U.
S.)
­
Importers
of
diesel
into
the
U.
S.
­
Diesel
distributors,
carriers,
wholesale
purchaserconsumers
and
retailers
­
Users
of
research
and
development
diesel
(
testing
laboratories)
7
Recordkeeping
and,
in
some
cases,
reporting
are
required
by
the
following
industries:
refiners
(
2911),
importers
(
5172),
pipelines
(
4613),
petroleum
marketers
and
and
other
distributors
(
5171,5172),
terminals
(
4226),
fuel
oil
dealers
(
5983),
fuel
additive
manufacturers
(
5172,
2911),
and
petroleum
retailers
and
wholesale
purchaser­
consumers
(
5541).

Some
of
the
required
records
­
like
product
transfer
documents
­
(
PTDs)
are
generated
and
maintained
in
the
normal
course
of
business
(
i.
e.,
customary
business
practices,
or
"
CBP").
Even
the
fuel
designations
and
records
tracking
the
volumes
are
the
very
records
fuel
distributors
collect
and
maintain
for
financial
accounting
purposes
in
the
normal
course
of
business.

4(
b)
Information
Requested
1.
Data
Items
Definitions
of
the
terms
and
data
used
in
reporting
are
given
in
40
CFR
§
80.2
and
§
80.501.

Recordkeeping
and
Reporting
Requirements
a.
General
Recordkeeping
and
Reporting
Requirements
Applicable
to
Refiners
and
Importers
Registration.
(
See
40
CFR
§
80.597.)
The
nonroad
diesel
sulfur
program
requires
that
refiners,
distributors
and
importers
who
are
either
currently
producing
and
supplying
nonroad
diesel
fuel,
or
that
expect
to
do
so,
register.
Where
a
registrant
has
already
provided
information
under
the
reformulated
gasoline
and
antidumping
program
(
see
40
CFR
§
80.76),
that
registrant
is
not
required
to
re­
register
under
this
diesel
program.

Pre­
Compliance
Reports.
(
See
40
CFR
§
80.594.)
As
with
the
highway
diesel
program,
we
require
that
each
refiner
and
importer
provide
annual
reports
on
the
compliance
progress
of
and
plans
for
each
of
their
refineries
or
import
facilities
towards
meeting
the
nonroad
diesel
sulfur
standard
as
specified
in
the
final
rule.
The
pre­
compliance
reports
are
due
June
1
of
each
year
beginning
in
2005
and
continuing
through
2009,
or
until
the
production
of
15
ppm
sulfur
NRLM
diesel
fuel
commences,
whichever
is
later.

Pre­
compliance
reports
may
be
submitted
electronically
or
on
paper
and
must
describe
any
changes
related
to
registration,
volume
estimates
for
both
15
ppm
and
500
ppm
diesel
fuel
to
be
produced
from
crude
oil
and
other
sources,
estimates
as
to
the
number
of
credits
to
be
earned
and/
or
used,
and
information
8
indicating
progress
toward
making
necessary
capital
commitments
and
modifications
to
produce
15
ppm
diesel
fuel
by
the
appropriate
date.
Pre­
compliance
reports
can,
at
the
discretion
of
the
refiner/
importer,
be
submitted
in
conjunction
with
the
annual
compliance
reports
discussed
below
and/
or
the
precompliance
and
annual
compliance
reports
required
under
the
highway
diesel
program,
as
long
as
all
of
the
information
that
is
required
in
all
reports
is
provided
and
clearly
identified.

Compliance
Reports
for
Refiners,
Importers,
and
Distributors
of
Designated
Diesel
Fuel.
(
See
40
CFR
§
§
80.592(
b)
and
80.593.)

a.
Designate
and
Track
Reporting
Requirements
i.
Quarterly
Reports.
From
December
1,
2007
and
through
September
1,
2010,
all
entities
who
are
required
to
maintain
records
must
report
the
following
information
by
facility
to
EPA
on
a
quarterly
basis:
(
a)
the
total
volume
of
each
type
of
designated
diesel
fuel
for
which
custody
was
transferred,
and
(
b)
the
total
volume
of
each
type
of
designated
diesel
fuel
for
which
custody
was
received.
Terminals
must
also
report
the
results
of
all
compliance
calculations
including
the
total
volumes
received
and
transferred
of
each
fuel
designation.

ii.
Annual
Reports.
Beginning
December
1,
2007,
all
entities
that
are
required
to
maintain
records
for
batches
of
fuel
must
report
by
facility
on
an
annual
basis
information
on
the
total
volumes
transferred
and/
or
received
of
each
fuel
designation,
as
well
as
the
results
of
all
compliance
calculations.

b.
Other
Reporting
Requirements
After
the
NRLM
diesel
fuel
sulfur
requirements
begin
on
June
1,
2007,
refiners
and
importers
will
be
required
to
submit
annual
compliance
reports
for
each
refinery
or
import
facility.
If
a
refiner
produces
15
ppm
sulfur
or
500
ppm
sulfur
fuel
early
under
the
credit
provisions,
its
annual
compliance
reporting
requirements
will
start
on
June
1
following
the
beginning
of
the
early
fuel
production.
These
reporting
requirements
will
sunset
after
all
flexibility
provisions
end
(
2004).
Annual
compliance
reports
will
be
due
on
August
31.

A
refiner's
or
importer's
annual
compliance
report
must
include
detailed
information
for
each
of
its
facilities:
(
a)
batch
reports
for
each
batch
produced
or
imported;
(
b)
report
on
the
generation,
use,
transfer
and
retirement
of
diesel
sulfur
credits;
a
small
refiner
that
elects
to
produce
15
ppm
sulfur
NRLM
diesel
fuel
by
June
1,
2006
must
also
supply
gasoline
sulfur
levels
information
and
progress
toward
highway
and
NRLM
diesel
9
sulfur
desulfurization.

Product
transfer
documents.
(
See
40
CFR
§
80.590.)
Refiners,
importers,
and
other
parties
in
the
distribution
system
must
provide
information
on
commercial
PTDs
that
identify
diesel
fuel
distributed
for
use
in
motor
vehicles
or
nonroad,
locomotive,
or
marine
diesel
equipment,
as
appropriate,
and
state
the
sulfur
standard
which
the
fuel
is
subject
to
(
PTDs
must
state
whether
the
highway
or
NRLM
diesel
fuel
complies
with
the
500
ppm
or
the
15
ppm
sulfur
standard).
The
PTD
must
indicate
whether
the
fuel
is
No.
1
or
No.
2,
dyed
or
undyed,
and
marked
or
unmarked.

This
additional
information
on
commercial
PTDs
is
necessary
to
maintain
the
integrity
of
the
various
grades
of
diesel
fuel
in
the
distribution
system.
Parties
in
the
system
will
be
better
able
to
identify
which
type
of
fuel
they
are
dealing
with
and
more
effectively
ensure
that
they
are
meeting
the
requirements
of
the
program.
This
approach
will
help
to
ensure
that
misfueling
of
sulfur
sensitive
engines
does
not
occur
and
that
the
program
achieves
its
goal,
that
is
emissions
reduction.
(
See
40
CFR
§
69.51(
a)(
2)
and
(
c)(
2).)

For
details
on
Recordkeeping
Requirements
for
Refiners
and
Importers,
Recordkeeping
Requirements
for
Distributors,
and
Recordkeeping
Requirements
for
End­
Users,
see
40
CFR
80.600
­
80.604.

c.
Record
Retention.
A
retention
time
period
of
five
years
for
all
records
is
required
under
this
rule.
This
is
the
same
period
of
time
required
in
other
fuel
rules,
and
it
coincides
with
the
applicable
statute
of
limitations.
This
retention
period
applies
to
PTDs,
records
required
under
the
designate
and
track
provisions,
records
of
any
test
results
performed
by
any
regulated
party
for
quality
assurance
purposes
or
otherwise,
along
with
supporting
documentation.
Business
records
regarding
actions
taken
in
response
to
any
violations
discovered
must
also
be
maintained
for
five
years.

Product
transfer
documents
for
additives.
(
See
40
CFR
§
80.591.)
Product
transfer
documents
for
diesel
additives
must
indicate
that
the
additive
does
not
exceed
15
ppm
sulfur
or,
in
the
alternative,
that
the
additive
does
exceed
15
ppm
sulfur
and
care
must
be
taken
to
blend
it
properly
in
order
to
ensure
that
the
blended
final
product
is
compliant
with
the
15
ppm
sulfur
standard.

Quality
assurance
test
results
for
batches
of
diesel
fuel.
(
See
40
CFR
§
80.592.)
Refiners
and
importers
are
required
to
test
each
batch
of
diesel
for
its
sulfur
content.
Quality
assurance
10
testing
is
voluntary,
although
nearly
all
refiners
and
importers
would
engage
in
such
testing
in
order
to
establish
an
affirmative
defense
under
an
enforcement
scenario.
For
distributors
quality
assurance
testing
is
voluntary.
Records
retained
would
have
to
indicate
the
location,
date,
time
and
storage
tank,
truck
or
batch
sampled,
the
name
and
title
of
the
person
who
sampled
the
tank
or
truck,
and
the
results
of
any
testing.
For
any
product
that
was
non­
compliant
as
a
result
of
quality
assurance
testing,
records
would
have
to
be
made
and
kept
to
indicate
the
actions
the
party
has
taken,
if
any,
to
identify
the
cause
of
the
noncompliance
and
to
prevent
future
instances
of
noncompliance.
Any
generated
records
related
to
quality
assurance
testing
would
have
to
be
retained
for
five
years.

All
records,
including
electronic
records
and
the
various
types
of
specific
recordkeeping
and
reporting
requirements
(
discussed
below),
must
be
made
available
to
EPA
upon
request.

b.
Applications
and
baselines
for
small
refiners.
(
See
40
CFR
§
§
80.550
­
80.80.555.)

Small
refiner
applications
must
include
information
about
the
company,
its
corporate
structure
and
its
refining
capacity
that
will
permit
EPA
to
assess
whether
the
refiner
is,
in
fact,
"
small"
for
purposes
of
the
program.
All
applications
must
be
in
writing
and
signed
and
certified
by
a
responsible
corporate
officer.

The
application
must
indicate
whether
the
refiner
is
seeking
to
continue
the
sale
of
500
ppm
nonroad,
locomotive,
and
marine
diesel
fuel
and/
or
to
generate
early
compliance
credits,
or
if
the
refiner
is
seeking
an
extension
of
its
small
refiner
gasoline
sulfur
standard
under
the
gasoline
sulfur
regulations.
(
See
40
CFR
§
§
80.240,
80.552(
d)
and
80.553.)

Small
refiners
must
apply
for
a
small
refiner
baseline.
(
See
40
CFR
§
80.533.)
A
separate
volume
baseline
must
be
submitted
for
each
refinery
for
which
small
refiner
status
is
sought.
The
baseline
must
be
accompanied
by
a
written
signature
and
certification
by
a
responsible
corporate
officer.

Small
refiners
must
comply
with
the
same
recordkeeping
and
reporting
requirements,
including
pre­
compliance
and
annual
reports,
required
of
all
refiners.

c.
Applications
by
Refiners
Seeking
to
Be
Granted
Temporary
Relief
for
General
Hardship.
(
See
40
CFR
§
80.560.)

A
refiner
may
petition
for
temporary
relief
from
some
or
all
of
the
diesel
requirements
if
the
refiner
can
demonstrate
that
11
unusual
circumstances
exist
that
impose
extreme
hardship
and
prevent
the
refiner
from
being
able
to
comply
with
applicable
requirements.
The
items
that
must
be
included
in
the
petition
are
laid
out
in
40
CFR
§
80.560
and
include
description
of
a
plan
demonstrating
how
the
refiner
plans
to
comply
with
the
diesel
rule's
requirements
as
soon
as
possible,
information
about
the
refiner's
efforts
to
obtain
capital
for
refinery
improvements
or
to
obtain
credits,
information
about
the
bond
rating
of
the
entity
that
owns
the
refinery,
and
similar
items
that
support
the
application.
The
refiner
must
also
include
a
compliance
plan
that
will
demonstrate
how
the
refiner
will
engage
in
a
quality
assurance
testing
program,
engage
in
period
sampling
and
testing
at
its
own
facilities
and
at
downstream
locations,
inspect
retail
and
wholesale
purchaser­
consumer
facilities
it
supplies
to
ensure
proper
segregation
and
labeling
of
its
product,
etc.
All
applications
must
be
accompanied
by
a
signed,
certification
letter
from
a
responsible
corporate
officer.

d.
Applications
by
Refiners
Seeking
to
be
Granted
Relief
under
Extreme
Circumstances.
(
See
40
CFR
§
80.561.)

In
appropriate
extreme,
unusual,
and
unforseen
circumstances,
clearly
outside
the
control
of
the
refiner
or
importer
and
which
could
not
have
been
avoided
by
exercising
due
diligence,
EPA
may
permit
distribution
of
diesel
fuel
that
does
not
meet
regulatory
requirements
if
certain
conditions
are
met
(
e.
g.
it
must
be
in
the
public
interest
to
do
so,
the
refiner
must
make
up
any
air
quality
detriment,
the
refiner
must
pay
the
U.
S.
Treasury
an
amount
equal
to
the
economic
benefit
of
the
nonconformity
minus
the
amount
paid
making
up
any
air
quality
detriment,
etc.).
Due
to
the
extreme
nature
of
this
relief,
no
exact
format
is
prescribed
by
the
regulations
for
application.
However,
in
order
for
the
Agency
to
make
a
decision
as
to
whether
to
grant
such
relief,
it
is
necessary
for
the
party
to
describe
the
circumstances
in
sufficient
detail.

e.
Applications
for
Research
and
Development
Exemptions.
(
See
40
CFR
§
80.607.)

Any
person
may
receive
an
exemption
from
the
regulations
for
diesel
fuel
used
for
research,
development,
or
testing
purposes.
The
regulations
specify
the
type
of
information
a
party
would
submit
in
order
to
demonstrate
that
there
is
a
legitimate
basis
for
granting
an
exemption.
Such
information
includes
a
concise
statement
of
the
purpose
and
scope
of
the
program
and
an
explanation
as
to
why
an
exemption
is
needed.
Information
about
the
duration
of
the
program,
the
maximum
number
of
vehicles
or
engines
involved,
and
the
quantity
of
diesel
fuel
is
to
be
provided
to
the
Agency.
In
addition,
the
party
must
provide
information
about
the
site
where
research
is
to
be
conducted
and
12
the
manner
in
which
records
will
be
kept.
Contact
information
must
be
provided.

f.
Recordkeeping
and
reporting
that
is
specific
to
foreign
refiners
subject
to
a
temporary
compliance
option
or
a
hardship
provisions
(
See
40
CFR
§
80.620.)

Generally,
the
requirements
of
the
diesel
program
are
to
be
met
by
the
importer
(
who
imports
foreign
refiner
diesel)
unless
a
foreign
refinery
has
applied
for
and
received
EPA
approval
to
produce
nonroad,
locomotive,
and
marine
diesel
fuel
under
the
temporary
compliance
option
or
one
of
the
hardship
provisions.
Foreign
refiners
may
seek
to
be
included
under
the
small
refiner
hardship
provisions
(
see
40
CFR
§
§
80.554),
the
temporary
relief
provisions
of
40
CFR
§
80.560
or
the
extreme
unforeseen
circumstances
provisions
of
40
CFR
§
80.561.
As
with
other
refiners,
application
must
be
made
in
writing
to
EPA,
and
signed
and
certified
by
a
responsible
corporate
officer.
The
writing
must
be
in
English
or
an
English
translation
must
be
provided.

Because
of
the
difficulties
of
enforcing
requirements
in
foreign
countries,
there
is
an
attest
engagement
requirement
associated
with
foreign
refiner
flexibility.
This
must
be
performed
on
a
yearly
basis
and
must
be
submitted
on
May
30th
for
the
prior
calendar
year.
An
attest
engagement
is
similar
to
a
financial
audit
and
is
to
be
conducted
by
a
party
who
is
independent
of
the
foreign
refiner
and
who
is
either
a
licensed
CPA
or
a
person
approved
in
advance
by
EPA
who
is
capable
of
carrying
out
those
duties.

g.
Recordkeeping
and
reporting
that
is
specific
to
the
generation
and
use
of
credits.
(
See
40
CFR
§
§
80.535
and
80.536.)

Details
are
given
in
the
section
given
above.

4.
THE
INFORMATION
COLLECTED
­
AGENCY
ACTIVITIES,
COLLECTION
METHODOLOGY,
AND
INFORMATION
MANAGEMENT
4(
a)
Agency
Activities
The
following
are
required:

Prepare
necessary
guidance
documents,
including
a
Question
and
Answer
(
Q&
A)
document

Convey
the
requirements
in
a
manner
that
is
understandable.
Emphasize
the
benefits
of
submitting
data
electronically.
13

Respond
to
inquiries.

Provide
access
to
the
regulations,
guidance
documents,
and
forms.

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

Process
baseline
applications
and
applications
for
hardships.

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.
1.
5(
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
shall
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.

EPA
will
accept
common
electronic
formats
for
most
of
the
reporting
requirements
­
for
example,
annual
reports
may
be
submitted
in
any
of
several
commercial
spreadsheet
formats
or,
more
simply,
as
comma­
delimited
text
files.
For
applications
for
small
refiner
status,
research
and
development
exemptions,
and
similar
documents,
any
format
may
be
used
that
contains
the
necessary
information.
All
submissions
must
be
signed
and
certified
by
a
responsible
corporate
officer.

The
product
transfer
document
information
can
be
included
on
standard
transfer
documentation
customarily
used
in
the
ordinary
14
course
of
business.
EPA
allows
the
information
to
be
encoded
by
upstream
parties
(
refiners,
importers,
terminals)
to
facilitate
reporting
and
save
space.

The
information
is
carefully
reviewed
for
compliance
with
the
requirements.
Most
of
the
information
submitted
to
the
Agency
is
confidential.
It
is
stored
in
a
secure
area
and
on
secure
databases.

5(
c)
Small
Entity
Flexibility
The
information
collection
reduces
to
the
extent
practicable
and
appropriate
the
burden
on
respondents,
including
small
entities.
Small
refiners
and
other
parties
are
required
to
supply
information
in
order
to
confirm
their
status
and
the
applicability
of
appropriate
flexibility
provisions
to
them.
However,
most
of
these
reporting
requirements
are
included
in
the
one
time
submission
of
the
registration,
application,
and
baseline.
Other
small
businesses
which
are
covered,
including
diesel
distributors,
retailers,
and
wholesale
purchaser
consumers,
must
maintain
product
transfer
documents,
which
is
already
done
in
the
ordinary
course
of
business.
Diesel
Fuel
distributors
must
also
report
their
receipts
and
transfers
of
designated
fuels
in
order
to
enable
the
designate
and
track
provisions
to
be
utilized
for
compliance
assurance.
It
should
be
stated,
however,
that
this
information
is
already
collected
in
the
course
of
normal
business.

6.
ESTIMATING
THE
BURDEN
AND
COST
OF
THE
COLLECTION
6(
a)
and(
b)
Estimating
Respondent
Burdens
and
Costs
The
reporting
burdens
associated
with
this
program
are
presented
in
three
tables
below
as
follows:
The
first
table
(
INITIAL
BURDEN)
includes
one­
time
burdens
associated
with
the
start
of
the
program,
that
is
a
one­
time
reporting
burden
associated
with
registration
(
for
those
parties
who
are
not
already
registered);
a
one­
time
reporting
burden
associated
with
each
application
under
various
available
compliance
options,
including
the
small
refiner,
GPA,
and
temporary
hardship
provisions
and,
the
cost
associated
with
development
of
database
and
software
programming
needs
for
diesel
reporting
and
credit
tracking.

The
annual
cost
associated
with
the
periodic
reporting
by
refiners
and
importers,
as
well
as
pipeline
and
terminal
operators
covering
the
first
three
years
of
the
program
implementation
is
presented
in
the
second
table
(
ANNUAL
BURDEN:
Period
June
2007
to
May
2010).
It
includes
the
costs
for
annual
and
quarterly
reporting,
exemption
applications
and
Q&
A
by
15
refiners
and
importers.
In
the
third
table
(
ANNUAL
BURDEN:
Period
June
2010
and
beyond)
the
annual
costs
are
significantly
lower,
as
quarterly
and
precompliance
reports
are
eliminated
and
fewer
pipeline
and
terminal
operators
will
need
to
submit
reports.

Labor
rates
on
a
per­
hour
basis,
are
taken
from
the
Bureau
of
Labor
Statistics
web
site
at
http://
stats.
bls.
gov/
news.
release/
ecec.
t12.
htm
(
accessed
November
24,
2000).
Technical
labor
is
$
42.89/
hr,
managerial
labor
is
$
65.19/
hr,
clerical
labor
is
$
27.11/
hr.
Labor
rates
were
multiplied
by
1.5
to
account
for
fringe
benefits
and
other
overhead
expenses.

The
labor
mix
for
the
activities
above
will
be
about
the
same
for
each.
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
about
$
70
per
hour,
which
will
be
used
in
this
ICR.
The
annual
burden
estimates
given
below
are
based
upon
the
likely
respondents
and
estimated
number
of
reports,
industry
contact,
and
our
knowledge
of
likely
industry
activity
over
the
next
three
years.
They
are
presented
in
the
same
order
as
above,
but
with
abbreviated
titles.
The
estimated
respondent
population
by
respondent
is
noted
on
the
table
below.

ANNUAL
ESTIMATED
REPORTING
BURDENS
For
most
activities
the
estimate
is
one
hour
per
report.
However,
some
reports
and
some
applications
may
require
considerably
more
time,
as
estimated
below.
We
expect
that
all
or
nearly
all
annual
reports
and
baselines
applications
will
be
submitted
electronically.
1
Many
parties
have
already
registered
under
other
fuels
program
and
will
not
have
to
re­
register.
We
are
assuming
a
total
of
150
refineries
and
importers,
and
1,000
pipelines
and
terminals
total
for
purposes
of
these
burden
tables.

16
Initial
Burden
Table
by
Collection
Activity
Collection
Activity
#
of
Respondents
#
of
Reports
per
Respondent
Total
#
of
Reports
Hours
per
Report
Total
Hours
Total
Labor
Cost.
in
$

Refiner
and
Importer
Registration1
20
1
20
1
20
$
1,500
Pipeline
and
Terminal
Operators'
Registration
1,000
1
1,000
1
1,000
$
75,000
Application
for
Small
Refiner
Status
25
1
25
20
500
$
37,500
Temporary
Hardship
Relief
Application
5
1
5
20
100
$
7,500
Refiners
and
Importers
database
and
software
programming
needs
for
diesel
reporting
and
credit
tracking
150
1
150
150
22,500
$
1,687,500
Pipeline
and
Terminal
Operators
database
and
software
needs
for
diesel
reporting
and
credit
tracking
1,000
1
1,000
50
50,000
$
3,750,000
Refiners'
and
Importers'

Creation
of
new
product
codes
for
Product
Transfer
Documents
150
1
150
15
2,250
$
168,750
Total
2,350
76,370
$
5,727,750
17
Annual
Burden
Table
by
Collection
Activity
Period:
June
2007
to
May
2010
Collection
Activity
Number
of
Respondents
Number
of
Reports
per
Respondent
Total
Number
of
Reports
Hours
per
Report
Total
Hours
Total
Labor
Cost
in
$

Application
for
Relief
Under
Extreme
Circumstances
2
1
2
40
80
6,000
R&
D
Exemption
Application
8
1
8
1
8
600
Refiners'
and
Importers
Precompliance
Reports
150
1
150
20
3,000
225,000
Refiners
and
Importers
Annual
Reports
150
1
150
40
6,000
450,000
Refiners
and
Importers
Quarterly
Reports
150
4
600
20
12,000
900,000
Pipeline
and
Terminal
Operators'
Annual
Reports
1,000
1
1,000
40
40,000
3,000,000
Pipeline
and
Terminal
Operators
Quarterly
Reports
1,000
4
4,000
30
120,000
9,000,000
Q&
A
by
Refiners
and
Importers
150
100
15,000
1
15,000
1,125,000
Attest
engagement
for
foreign
refiners
5
1
5
40
200
15,000
Total
2615
20,915
196,288
14,721,600
18
Annual
Burden
Table
by
Collection
Activity
Period:
June
2010
and
beyond
Collection
Activity
Number
of
Respondents
Number
of
Reports
per
Respondent
Total
Number
of
Reports
Hours
per
Report
Total
Hours
Total
Labor
Cost
in
$

Application
for
Relief
Under
Extreme
Circumstances
2
1
2
40
80
6,000
R&
D
Exemption
Application
8
1
8
1
8
600
Refiners
and
Importers
Annual
Reports
150
1
150
40
6,000
450,000
Pipeline
and
Terminal
Operators'
Annual
Reports
100
1
100
40
4,000
300,000
Q&
A
by
Refiners
and
Importers
150
100
15,000
1
15,000
1,125,000
Attest
engagement
for
foreign
refiners
5
1
5
40
200
15,000
Total
15,265
25,288
$
1,896,800
19
THE
RESULTS
BY
TABLE
ARE
AS
FOLLOWS:
INITIAL
BURDEN
TOTAL
NO.
OF
REPORTS:
2,
350
TOTAL
BURDEN
HOURS:
76,370
TOTAL
LABOR
COSTS:
$
5,727,750
ANNUAL
BURDEN
Period
May
2004
to
May
2007
TOTAL
BURDEN
HOURS
for
1st
YEAR:
0
TOTAL
BURDEN
HOURS
for
2nd
YEAR:
76,370
TOTAL
BURDEN
HOURS
for
3rd
YEAR:
196,288
AVERAGE
OVER
3­
YEAR
PERIOD:
90,886
ANNUAL
BURDEN
Period
June
2007
to
May
2010
TOTAL
NO.
OF
REPORTS:
20,915
TOTAL
BURDEN
HOURS:
196,288
TOTAL
LABOR
COSTS:
$
14,721,600
TOTAL
O&
M
AND
CAPITAL
COSTS:
3,600,000
(
1/
2
O&
M
and
1/
2
CAPITAL)
TOTAL
PURCHASED
SERVICES
COSTS:
50,000
TOTAL
OF
ALL
COSTS
=
$
18,371,600
ANNUAL
BURDEN
Period
June
2010
and
Beyond
TOTAL
NO.
OF
REPORTS:
15,265
TOTAL
BURDEN
HOURS:
25,288
TOTAL
LABOR
COSTS:
$
1,896,600
TOTAL
O&
M
AND
CAPITAL
COSTS:
3,600,000
(
1/
2
O&
M
and
1/
2
CAPITAL)
TOTAL
PURCHASED
SERVICES
COSTS:
50,000
TOTAL
OF
ALL
COSTS
=
5,546,600
The
above
cost
estimate
represents
the
maximum
cost
associated
with
the
information
collection
for
the
nonroad
diesel
rule.
It
is
highly
probable
that
refiners,
importers,
pipeline
and
terminal
operators
will
incorporate
the
data
submission
requirements
for
the
nonroad
diesel
with
other
established
submission
forms
such
as
the
highway
diesel
collection.
As
a
result
the
overall
cost
could
be
reduced
significantly.

6(
c)
Estimating
Agency
Burden
and
Cost
The
Agency
activities
listed
in
5(
a)
are
part
of
an
overall
gasoline
and
diesel
reporting
system
(
including
reformulated
gasoline,
conventional
gasoline,
and
diesel).
This
system
is
handled
by
a
contractor
for
$
218,000
per
year,
a
GS­
13
computer
specialist
for
$
120,000
per
year
(
including
overhead),
a
GS­
13
program
analyst
for
$
120,000
per
year,
and
the
equivalent
of
a
GS­
14
program
manager
for
$
150,000
per
year.
Annual
cost
for
lease
and
security
of
the
secure
area
where
the
confidential
data
are
stored
and
analyzed
is
estimated
at
$
30,000.
Annual
computer
cost
is
estimated
at
$
30,000.
Thus,
the
annual
estimated
cost
to
the
government
is
$
668,000.
The
total
annual
hours
for
20
government
employees
are
3
full
time
equivalents
(
FTE)
x
2080
hours/
FTE
=
6,240
hours.

6(
d)
and
(
e)
Estimating
the
Respondent
Universe
and
Total
Burden
and
Costs,
and
Bottom
Line
Burden
Hours
and
Costs
This
was
incorporated
into
6(
a)
and
(
b).

6(
f)
Reasons
for
Change
in
Burden
The
reporting
burden
related
to
diesel
fuel
has
changed
as
a
result
of
the
final
rule
establishing
the
low
sulfur
nonroad
equipment
diesel
fuel
requirements.

6(
g)
Burden
Statement
The
public
reporting
burden
for
this
Environmental
Protection
Agency
(
EPA)
collection
of
information
is
estimated
to
average
one
hour
per
response.
This
includes
time
for
reviewing
instructions
and
regulations,
searching
company
records,
gathering
the
needed
data,
and
completing,
reviewing,
copying,
and
transmitting
the
collection
of
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
or
requirements;
train
personnel
to
be
able
to
response
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
ICR
under
Docket
ID
No.
OAR­
2003­
0012,
which
is
available
for
public
viewing
at
the
Air
Docket
in
the
EPA
Docket
Center
(
EPA/
DC),
EPA
West,
Room
B102,
1301
Constitution
Ave.,
NW,
Washington,
DC.
The
EPA
Docket
Center
Public
Reading
Room
is
21
open
from
8:
30
a.
m.
to
4:
30
p.
m.,
Monday
through
Friday,
excluding
legal
holidays.
The
telephone
number
for
the
Reading
Room
and
the
Air
Docket
is
(
202)
566­
1744.
An
electronic
version
of
the
public
docket
is
available
through
EPA
Dockets
(
EDOCKET)
at
http://
www.
epa.
gov/
edocket.
EDOCKET
is
available
for
submitting
or
viewing
public
comments,
accessing
the
index
listing
of
the
contents
of
the
public
docket,
and
accessing
those
documents
in
the
public
docket
that
are
available
electronically.
Once
in
the
system,
select
"
search,"
then
key
in
the
docket
ID
number
identified
above.
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
EPA
Docket
ID
No.
(
OAR­
2003­
0012)
and
OMB
control
number
(
2060­
0308)
in
any
correspondence.