Page
1
of
13
INFORMATION
COLLECTION
REQUEST
(
ICR)

ENVIRONMENTAL
PROTECTION
AGENCY
STRATOSPHERIC
OZONE
PROTECTION
SUPPORTING
STATEMENT
PART
A
1.
Identification
of
the
Information
Collection
a)
Title:
Reporting
and
Recordkeeping
Requirements
of
the
HCFC
Allowance
System
OMB
Number:

EPA
Number:
2014.02
b)
Short
Characterization:

In
order
to
meet
its
obligations
under
the
Montreal
Protocol
on
Substances
that
Deplete
the
Ozone
Layer
(
Protocol)
and
the
Clean
Air
Act
Amendments
of
1990
(
CAAA),
EPA
is
establishing
an
allowance
system
for
class
II
controlled
substances
or
hydrochlorofluorocarbons
(
HCFCs).
Under
the
Protocol,
the
U.
S.
is
obligated
to
limit
HCFC
consumption
(
defined
by
the
Protocol
as
production
plus
imports,
minus
exports)
under
a
specific
cap.
The
U.
S.
is
also
a
signatory
to
amendments
to
freeze
HCFC
production
on
January
1,
2004.
EPA
is
controlling
U.
S.
production
and
import
of
HCFCs
by
granting
baseline
allowances
based
on
the
historical
activity
levels
of
producers
and
importers.
Since
each
allowance
will
be
equal
to
1
kilogram
of
HCFC,
EPA
will
be
able
to
monitor
the
quantity
of
HCFCs
being
produced,
imported,
exported,
transformed,
or
destroyed.
There
are
two
types
of
allowances:
consumption
allowances
and
production
allowances.
Transfers
of
production
and
consumption
allowances
among
producers
and
importers
is
allowed.

Producers,
importers,
and
exporters
are
required
to
submit
to
EPA
quarterly
reports
of
the
quantity
of
HCFCs
in
each
of
their
transactions;
they
are
also
required
to
report
the
quantity
of
HCFCs
transformed
or
destroyed.
EPA
is
requiring
all
producers,
importers,
and
exporters
maintain
records
such
as
Customs
entry
forms,
bills
of
lading,
sales
records,
and
canceled
checks
to
support
their
quarterly
reports.
The
quarterly
reports
may
be
faxed
or
mailed
to
EPA,
where
they
will
be
handled
as
confidential
business
information.
EPA
will
store
the
submitted
information
in
a
computerized
database
designed
to
track
allowance
balances
and
transfer
activities.
EPA
is
currently
exploring
the
possibility
of
having
reports
filled
and
submitted
to
the
Agency
over
a
secure
Web
site.
If
and
when
electronic
reporting
would
occur,
EPA
would
change
its
guidance
document
and
its
ICR
to
indicate
a
change
in
burden
hours.
EPA
will
use
the
information
to
ensure
that
the
U.
S.
maintains
compliance
with
the
Protocol
caps
and
to
report
annually
to
United
Nations
Environment
Programme
the
U.
S.
activity
in
HCFCs.

EPA
will
store
the
submitted
information
in
a
computer
system
designed
to
track
allowance
balances
and
transfer
activities.
The
information
collection
will
involve
52
respondents:
seven
producers,
14
importers,
16
exporters,
as
well
as
15
entities
petitioning
for
HCFC­
141b
exemption
allowances.
(
three
companies
both
produce
and
import)
The
total
industry
burden
and
cost
are
estimated
at
3,292
hours
and
$
253,089.
Page
2
of
13
2.
Need
For,
and
Use
Of,
the
Collection
a)
Authority
for
the
Collection
CAA
§
603(
b)
Production,
import,
and
export
level
reports
On
a
quarterly
basis,
or
such
other
basis
(
not
less
than
annually)
as
determined
by
the
Administrator,
each
person
who
produced,
imported,
or
exported
a
class
I
or
class
II
substance
shall
file
a
report
with
the
Administrator
setting
for
the
amount
of
the
substance
that
such
person
produced,
imported,
and
exported
during
the
preceding
reporting
period.
Each
such
report
shall
be
signed
and
attested
by
a
responsible
officer.
No
such
report
shall
be
required
from
a
person
after
April
of
the
calender
year
after
such
person
permanently
ceases
production,
importation,
and
exportation
of
the
substance
and
so
notified
the
Administrator
in
writing.

Montreal
Protocol
on
Substances
that
Deplete
the
Ozone
Layer
Article
7:
Reporting
of
data
1.
Each
Party
shall
provide
to
the
Secretariat,
within
three
months
of
becoming
a
Party,
statistical
data
on
its
production,
imports
and
exports
of
each
of
the
controlled
substances
in
Annex
A
for
the
year
1986,
or
the
best
possible
estimates
of
such
data
where
actual
data
are
not
available.

2.
Each
Party
shall
provide
to
the
Secretariat
statistical
data
on
its
production,
imports
and
exports
of
each
of
the
controlled
substances
­
in
Annex
B
and
Groups
I
and
II
of
Annex
C
for
the
year
1989;

­
in
Annex
E,
for
the
year
1991,

or
the
best
possible
estimates
of
such
data
where
actual
data
are
not
available,
not
later
than
three
months
after
the
date
when
the
provisions
set
out
in
the
Protocol
with
regard
to
the
substances
in
Annexes
B,
C
and
E
respectively
enter
into
force
for
that
Party.

3.
Each
Party
shall
provide
to
the
Secretariat
statistical
data
on
its
annual
production
(
as
defined
in
paragraph
5
of
Article
1)
of
each
of
the
controlled
substances
listed
in
Annexes
A,
B,
C
and
E
and,
separately,
for
each
substance,

­
Amounts
used
for
feedstocks,

­
Amounts
destroyed
by
technologies
approved
by
the
Parties,
and
­
Imports
from
and
exports
to
Parties
and
non­
Parties
respectively,

for
the
year
during
which
provisions
concerning
the
substances
in
Annexes
A,
B,
C
and
E
respectively
entered
into
force
for
that
Party
and
for
each
year
thereafter.
Each
Party
shall
provide
to
the
Secretariat
statistical
data
on
the
annual
amount
of
the
controlled
substance
listed
in
Annex
E
used
for
quarantine
and
pre­
shipment
applications.
Data
shall
be
forwarded
not
later
than
nine
months
after
the
end
of
the
year
to
which
the
data
relate.
Page
3
of
13
3
bis.
Each
Party
shall
provide
to
the
Secretariat
separate
statistical
data
of
its
annual
imports
and
exports
of
each
of
the
controlled
substances
listed
in
Group
II
of
Annex
A
and
Group
I
of
Annex
C
that
have
been
recycled.

4.
For
Parties
operating
under
the
provisions
of
paragraph
8
(
a)
of
Article
2,
the
requirements
in
paragraphs
1,
2,
3
and
3
bis
of
this
Article
in
respect
of
statistical
data
on
imports
and
exports
shall
be
satisfied
if
the
regional
economic
integration
organization
concerned
provides
data
on
imports
and
exports
between
the
organization
and
States
that
are
not
members
of
that
organization.

b)
Practical
Utility/
Users
of
the
Data
The
reporting
and
recordkeeping
requirements
included
in
the
rule
will
enable
EPA
to:
1)
Ensure
compliance
with
the
restrictions
on
production,
import
and
export
of
controlled
ozonedepleting
substances
during
the
phaseout
of
class
II
substances;
2)
To
allow
exempted
production
and
import
for
certain
uses
and
the
consequent
tracking
of
that
production
and
import;
3)
Address
industry
and
Federal
concerns
regarding
the
illegal
import
of
mislabeled
used
controlled
substances;
4)
Satisfy
U.
S.
obligations
to
report
data
under
Article
7
under
the
Protocol;
5)
Fulfill
statutory
obligations
under
Section
603(
b)
and
of
Title
VI
of
the
CAAA
for
reporting
and
monitoring;
6)
Provide
information
to
report
to
Congress
on
the
production,
use
and
consumption
of
class
II
controlled
substances
as
statutorily
required
in
Section
603(
d)
of
Title
VI
of
the
CAAA.

Beginning
January
1,
2003,
the
phaseout
of
production
and
consumption
of
HCFC­
141b
will
become
effective.
To
ensure
an
orderly
phaseout
of
the
production
and
consumption
of
HCFCs,
this
action
establishes
production
and
consumption
allowances
and
the
reporting
requirements
of
the
regulations.

In
order
to
monitor
each
company's
production,
import,
export,
destruction,
and
transformation,
the
reporting
system
requires
information
which
can
be
used
to
check
industry
compliance
with
the
stratospheric
ozone
protection
regulations.
Compliance
during
the
phaseout
means
companies
generally
produce,
import,
and
export
class
II
substances
based
on
the
allocated
allowances,
including
specific
and
limited
exemptions.
Exemptions
may
include
HCFC­
141b
exemption
allowances
for
HCFC­
141b.

The
information
reported
to
EPA
is
entered
into
an
electronic
tracking
system
to
ensure
companies
do
not
exceed
their
allowances
and
to
guarantee
the
U.
S.
does
not
violate
it
obligations
under
the
Protocol.
Thus,
the
information
is
used
for
compliance
monitoring
for
individual
companies
and
for
monitoring
U.
S.
compliance
with
obligations
under
the
Protocol.

Information
is
collected
to
provide
reports
to
the
Secretariat
of
Protocol
to
meet
U.
S.
international
treaty
obligations.
Requirements
to
report
data
are
listed
in
Article
7
of
the
Protocol.

Industry
representatives
and
many
Federal
agencies,
including
EPA,
are
concerned
about
claims
of
fraudulent
imports
of
controlled
substances
that
are
mislabeled
as
used,
recycled
or
reclaimed.
EPA
established
a
petition
process
to
provide
information
for
controlling
the
import
of
these
materials
and
act
as
a
deterrent
to
potential
fraud.
Companies
that
wish
to
import
used,
recycled
or
reclaimed
controlled
substances
must
provide
detailed
information
about
the
previous
use
of
the
material.
This
rule
establishes
Page
4
of
13
the
information
that
a
company
must
provide
in
a
petition
in
order
to
assist
EPA
and
other
agencies
in
independently
verifying
that
the
material
listed
was,
in
fact,
previously
used.

3.
Nonduplication,
Consultations,
and
Other
Collection
Criteria
a)
Nonduplication
All
the
information
requested
from
respondents
under
this
ICR
is
required
by
statute
(
CAA
§
603(
b))
and
is
not
available
from
other
sources
because
it
is
proprietary
information
submitted
by
industry
sources.
It
does
not
duplicate
the
current
collection
of
information
but
replaces
it
with
quarterly
reporting
by
producers,
importers,
and
exporters,
and
a
petition
process
for
the
import
of
used
HCFCs.
Those
entities
granted
HCFC­
141b
exemption
allowances
after
its
phaseout
on
January
1,
2003,
will
have
to
report
semi
annually
on
their
usage
of
the
chemical
and
annually
on
their
search
for
an
alternative
and
their
continuing
need
for
the
exemption.

b)
Public
Notice
Required
Prior
to
ICR
Submission
to
OMB
Since
this
is
a
rule­
related
ICR,
public
notice
soliciting
public
comments
on
the
ICR
and
estimates
of
burden
were
done
as
part
of
the
preamble.

c)
Consultations
In
1998,
EPA
conducted
two
stakeholder
meetings
for
members
of
the
industry
while
considering
the
many
aspects
of
an
HCFC
allowance
system.
EPA
published
an
Advance
Notice
of
Proposed
Rulemaking
on
April
5,
1999,
in
which
the
options
for
an
allowance
system
were
discussed.
The
comments
on
the
Advance
Notice
did
not
indicate
any
concern
with
the
information
collection
that
had
been
in
place
since
1996
or
with
any
future
information
collection
associated
with
the
HCFC
allowance
system
under
consideration.

In
addition,
the
following
agencies
were
provided
with
a
copy
of
the
rule
for
review:
U.
S.
Department
of
Commerce,
U.
S.
Office
of
Trade
Representatives,
National
Aeronautics
and
Space
Administration,
U.
S.
Air
Force,
U.
S.
Navy,
U.
S.
Coast
Guard,
and
the
U.
S.
Army.

d)
Effects
of
Less
Frequent
Collection
Less
frequent
collection
of
data
would
compromise
statutory
requirement
under
section
603
of
the
CAAA
to
monitor
production,
import
and
export
levels.
Less
frequent
collection
of
information
would
hinder
EPA's
ability
to
identify
a
violation
of
the
regulation.
Penalties
for
exceeding
the
regulatory
limits
are
assessed
daily
at
$
27,500
per
kilogram
per
day
which
necessitates
frequent
information
collection.
Violations
would
be
much
more
complex
to
pursue
and
enforce
if
the
information
were
submitted
less
frequently.

Less
frequent
reporting
would
potentially
put
the
United
States
in
a
non­
compliance
status
under
the
Protocol.
If
the
U.
S.
were
to
exceed
the
limits
established
by
international
treaty
it
would
jeopardize
the
ability
of
the
U.
S.
to
negotiate
and
secure
favorable
positions
in
the
international
forum.
Quarterly
reporting
allows
EPA
the
necessary
time
to
take
actions
if
production,
import
or
export
begin
to
exceed
Protocol
limits
or
the
limits
set
in
Section
605
of
Title
VI
in
the
CAAA.

Less
frequent
collection
of
information
would
place
an
undue
burden
on
both
EPA
and
industry
to
ensure
accuracy
of
data.
Any
inaccuracy
would
be
compounded
by
the
greater
time
between
an
actual
Page
5
of
13
event
and
the
efforts
needed
to
correct
the
historical
information.
Inaccuracies
in
information
would
compromise
EPA's
ability
to
implement
the
program.
Inaccuracies
would
also
reduce
the
validity
of
both
reports
to
Congress
and
reports
to
the
Secretariat
of
the
Protocol.

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
of
the
information
they
submit.
Information
claimed
confidential
will
be
treated
in
accordance
with
the
procedures
for
handling
information
claimed
as
confidential
under
40
CFR
Part
2,
Subpart
b,
and
will
be
disclosed
only
if
EPA
determines
that
the
information
is
not
entitled
to
confidential
treatment.
If
no
claim
of
confidentiality
is
asserted
when
the
information
is
received
by
EPA,
it
may
be
made
available
to
the
public
without
further
notice
to
the
respondents
(
40
CFR
2.203).

g)
Sensitive
Questions
This
section
is
not
applicable
because
this
ICR
does
not
involve
matters
of
a
sensitive
nature.

4.
The
Respondents
and
the
Information
Requested
a)
Respondents/
SIC
Codes
The
following
is
a
list
of
SIC
and
NAICS
codes
associated
with
producers,
importers,
exporters,
transformers,
and
destroyers
of
HCFCs
affected
by
the
reporting
and
recordkeeping
requirements
covered
under
this
ICR:

Category
NAICS
code
SIC
code
Examples
of
regulated
entities
Page
6
of
13
Chlorofluorocarbon
gas
manufacturing
Chlorofluorocarbon
gas
importers
Chlorofluorocarbon
gas
exporters
Urethane
and
Other
Foam
Product
(
Except
Polystyrene)
Manufacturing
325120
326150
2869
3086
Chlorodifluoromethane
manufacturers;
Dichlorofluoroethane
manufacturers;
Chlorodifluoroethane
manufacturers.
Chlorodifluoromethane
importers;
Dichlorofluoroethane
importers;
Chlorodifluoroethane
importers.
Chlorodifluoromethane
exporters;
Dichlorofluoroethane
exporters;
Chlorodifluoroethane
exporters
Insulation
and
cushioning,
foam
plastics
(
except
polystyrene)
manufacturing
b)
Information
Requested
This
action
establishes
a
system
of
production
allowances
and
consumption
allowances
for
the
production
and
import
of
controlled
substances
that
EPA
will
monitor
through
quarterly
and
annual
reports.
Producers,
importers,
exporters
and
others
must
maintain
records
and
report
to
EPA
information
on
expended
and
unexpended
allowances,
transformation,
destruction,
transfers,
and
exports.

i)
Data
Items
The
following
data
items
may
be
needed
under
this
system.


records
containing
inventories
of
production
and
consumption
allowances
reflecting
any
transfers
as
required
by
Section
82.24

records
containing
production,
raw
materials
used,
sales,
shipments,
controlled
substances
recovered
and
recycled,
and
import
activities
as
required
by
Section
82.24

reports
on
feedstock
consumption,
shipments,
total
consumption
allowances,
production
allowances,
and
data
on
recoverable
and
recyclable
materials
if
importing
as
required
by
Section
82.24

reports
on
import
activities
as
required
by
Section
82.24

end
of
year
export
reports
of
Class
II
chemicals
provided
by
companies
that
did
not
previously
submit
export
reports
as
required
by
Section
82.24
Page
7
of
13

transfer
requests
documenting
allowance
and
inter­
pollutant
trade
negotiations
as
required
under
Section
82.18
and
a
signed
document
from
the
principal
diplomatic
representative
in
that
nation's
embassy
in
the
U.
S.
stating
that
the
appropriate
authority
within
that
nation
has
established
or
revised
production
limits
for
the
nation

requests
for
consumption
allowances
as
required
by
Section
82.20

petitions
to
import
and
produce
HCFCs
for
HCFC­
141b
exemption
allowances
as
required
under
section
82.18
°
reports
on
HCFC­
141b
use
and
search
for
alternatives
under
the
HCFC­
141b
exemption
allowances
as
required
by
Section
82.24
All
producers,
importers,
exporters,
and
others
identified
under
Section
82.13
or
Section
82.24
must
perform
the
following:

Producers
°
quantities
of
raw
materials
and
feedstocks;
°
expended
and
unexpended
production,
consumption,
export
production,
and
Article
5
allowances;
°
quantities
of
chemical
produced,
sold,
transfered,
exported,
transformed,
or
destroyed;
°
documentation
of
sales
and
transfers,
invoices,
receipts;
°
production
for
transformation
and
destruction;
°
documentation
of
any
spill
that
exceeds
100
pounds;
°
verification
of
destruction;
°
information
from
exporter
certifying
that
exports
are
for
transformation
or
destruction;
and
°
quantity
of
HCFC­
141b
produced
for
HCFC­
141b
exemption
allowance
purposes
and
orders
placed,
and
°
written
verifications
of
recipient
and
intended
use;
°
quantity
of
HCFC­
141b
produced
with
export
allowance.

Importers
°
expended
and
unexpended
consumption
allowances
for
imports
of
HCFCs;
°
quantities
imported;
°
commodity
codes;
°
date
of
entry/
port
of
entry/
originating
country;
°
transhipment
information;
°
importer
number;
°
bills
of
lading;
°
customs
entry
forms;
°
documentation
of
sale;
°
verification
of
destruction
or
transformation;
°
imports
of
used,
recycled
and
reclaimed
HCFCs,
including
information
on
previous
and
intended
use,
exporter,
potential
reclaimers;
°
import
petitions
and
re­
petitions;
°
imports
of
containers
with
a
heel;
°
imports
for
transformation
and
destruction;
and
°
quantity
of
HCFC­
141b
imported
for
HCFC­
141b
exemption
allowance
uses.
Page
8
of
13
Exporters
°
expended
and
unexpended
consumption
allowances
for
exports
of
HCFCs;
°
quantity
exported
to
Article
2
and
Article
5
countries;
°
the
exporting
vessel
on
which
HCFCs
are
shipped,
Customs
Form
7525;
°
quantity
exported
for
transformation
or
destruction;
and
°
certification
that
export
will
be
transformed
or
destroyed,
if
applicable.
°
quantity
of
HCFC­
141b
exported.

Transformers,
Destroyers,
and
Other
°
quantity
purchased
for
transformation
or
destruction
on
an
annual
basis;
°
information
on
destruction
technique
and
efficiency
(
initially
with
updated
information);
°
information
on
origination
and
destination
of
transhipments;
°
information
on
products
made
with
or
containing
HCFC­
141b
for
HCFC­
141b
exemption
allowance
purposes;
°
information
on
trading
partners
and
trade,
signed
documentation
from
diplomatic
representatives;
regarding
production
limits,
transfer
requests,
notice
of
trade,
revised
notices
of
production
limits.

HCFC­
141b
exemption
allowance
petitioners
°
total
quantity
of
HCFC­
141b
received
to
date;
°
identity
of
producer
or
importer
of
HCFC­
141b;
°
petition
for
HCFC­
141b
exemption
allowances.

All
records
and
reports
must
comply
with
the
requirements
specified
in
Section
82.24.
Requirements
for
keeping
records
associated
with
the
reports
listed
above
are
for
three
years.
These
recordkeeping
requirements
pertain
to
original
documents
that
are
held
by
companies
in
the
normal
course
of
conducting
business,
such
as
Customs
entry
forms,
accounts
of
daily
production
runs,
sales
invoices,
and
bills
of
lading.
Information
from
these
recordkeeping
documents
are
summarized
in
reports.
Recordkeeping
requirements
are
designed
to
aid
EPA
in
compliance
monitoring,
site
inspection
and
enforcement
actions.

(
ii)
Respondent
Activities
All
producers,
importers,
and
exporters
identified
under
Section
82.13
or
Section
82.24
must
perform
the
following:


Producers
must
keep
records
and
submit
reports
on
a
quarterly
basis
as
required
by
Section
(
82.24
(
b)).


Importers
must
keep
records
and
submit
reports
on
a
quarterly
basis
as
required
by
Section
(
82.24
(
c,
f
)).


Exporters
must
keep
records
and
submit
notices
as
required
by
Section
(
82.24(
d)).


Transformers,
Destroyers,
and
Other
must
keep
records
and
submit
reports
on
an
annual
basis
as
required
by
Section
(
82.24
(
c,
e,
f)).
Trading
parties
must
keep
records
and
submit
notices
and
reports
as
required
under
Section
(
82.17(
e,
f,
h))
and
82.23.
Page
9
of
13

Entities
granted
HCFC­
141b
exemption
allowances
must
keep
records
and
submit
reports
on
a
semi
annual
basis
as
required
by
Section
(
82.24(
h)).

All
records
and
reports
must
comply
with
the
requirements
specified
in
Section
82.24.
Requirements
for
keeping
records
associated
with
the
reports
listed
above
are
for
three
years.
These
recordkeeping
requirements
pertain
to
original
documents
that
are
held
by
companies
in
the
normal
course
of
conducting
business,
such
as
Customs
entry
forms,
accounts
of
daily
production
runs,
sales
invoices,
and
bills
of
lading.
Information
from
these
recordkeeping
documents
are
summarized
in
reports.
Recordkeeping
requirements
are
designed
to
aid
EPA
in
compliance
monitoring,
site
inspection
and
enforcement
actions.

5.
The
Information
Collected

Agency
Activities,
Collection
Methodology,
and
Information
Management
a)
Agency
Activities
°
notify
producers/
importers/
exporters
of
baseline
allowances;

°
modify
Tracking
System
to
incorporate
additions
of
HCFCs
and
other
regulatory
requirements;

°
revise
guidance
document
to
describe
reporting
requirements;

°
enter
and
store
information
submitted
from
companies
in
the
Tracking
System;

°
respond
to
companies
submitting
tracked/
monitored
information,
such
as
requests
for
transfers;

°
review
petitions
submitted
to
import
used
HCFCs;

°
review
petitions
submitted
requesting
HCFC­
141b
exemption
allowances;

°
review
information
and
conduct
compliance
monitoring
activities
related
to
restrictions
on
production,
import,
export,
transformation
and
destruction
of
HCFCs
for
individual
companies;

°
inspect
records
maintained
by
producers,
importers,
exporters,
transformers,
and
destroyers
of
HCFCs;

°
review
information
in
tracking
system
to
ensure
U.
S.
is
not
exceeding
consumption
and
production
caps
agreed
to
as
a
Party
to
the
Protocol;

°
review
information
in
tracking
system
to
ensure
exempted
production
and
imports
do
not
exceed
limits
statutorily
set
in
Section
605
of
Title
VI
of
the
CAAA;

°
compile
reports
mandated
by
U.
S.
obligations
under
the
Protocol
and
Title
VI
of
the
CAAA,
including
Reports
to
Congress.

b)
Collection
Methodology
and
Management
After
the
final
rule
establishing
the
allowance
system
for
HCFCs
is
published,
the
Agency
will
provide
forms
to
companies
in
a
newly
revised
Guidance
Document.
The
Agency
will
provide
forms
for
Page
10
of
13
the
different
activities
and
allowances
associated
with
HCFCs.
A
copy
of
the
current
Guidance
Document
for
Stratospheric
Ozone
Protection
Program
after
January
1,
1996
is
attached.

Although
the
use
of
the
forms
is
voluntary,
they
are
generally
used
by
every
participant
in
the
regulatory
program.
In
the
past,
the
forms
greatly
facilitated
and
eased
submission
of
data
for
respondents.
The
reporting
requirements,
first
promulgated
in
the
July
30,
1992
final
rule,
and
then
simplified
and
reduced
through
amendments
published
in
the
Federal
Register
on
May
10,
1995
eased
administrative
and
reporting
burden.

An
electronic
version
of
the
Tracking
System
will
be
available
for
distribution
to
companies
to
allow
electronic
reporting
by
diskette.
A
version
of
the
Industry
Version
of
the
Tracking
System
is
attached.
The
system
is
operated
using
a
Microsoft
Access
95
format.
The
diskette
sent
to
companies
will
contain
a
stand­
alone
executable
file
of
Microsoft
Access
so
they
may
operate
the
reporting
system
without
needing
the
specific
software.

In
general,
the
regulatory
program
and
the
reporting
requirements
are
similar
to
those
already
used
by
companies
involved
in
production
and
consumption
of
chlorofluorocarbons
(
CFCs).
Since
many
of
these
firms
also
produce
HCFCs,
the
administrative
burden
on
these
firms
to
establish
recordkeeping
and
reporting
systems
is
believed
to
be
minimal.

c)
Small
Entity
Flexibility
Much
of
this
information
collection
is
required
by
statute.
The
rest
of
the
information
required
is
collected
in
response
to
Congressional
requests
for
reports
and
U.
S.
reporting
obligations
under
the
Protocol.
EPA
believes
the
information
collection
is
required
to
ensure
allowance
holders
have
intended
access
to
their
allowances,
to
produce
these
nationally
and
internationally
mandated
reports,
and
to
ensure
compliance
with
sections
605
and
606
of
the
CAAA.
Entities
will
be
submitting
information
to
the
Agency
through
petitions
requesting
HCFC­
141b
exemption
allowances.
Those
qualifying
entities
will
be
granted
a
benefit
in
the
form
of
HCFC­
141b
exemption
allowances
which
allow
limited
continued
production
of
HCFC­
141b
beyond
the
long­
established
phaseout
date.
Although
most
respondents
to
the
program
are
large
companies,
the
burden
on
all
affected
entities,
and
especially
the
burden
on
small
entities,
has
been
reduced
to
every
extent
possible.

d)
Collection
Schedule
After
April
1,
2001:

°
Producers,
importers,
and
exporters
will
report
to
EPA
quarterly,
with
reports
due
15
days
after
the
end
of
each
quarter;
°
Transformers
and
destroyers
will
report
annually.
°
Entities
holding
HCFC­
141b
exemption
allowances
will
report
semi
annually.

In
the
past,
companies
have
expressed
a
desire
to
report
quarterly
rather
than
annually
in
order
to
ease
their
overall
burden
and
increase
the
accuracy
of
their
submissions.
Companies
claimed
that
quarterly
submissions
allow
more
accurate
self­
monitoring
for
maintaining
compliance
with
the
regulations.
Companies
claimed
that
smaller
quarterly
reports
are
easier
to
compile
than
larger
semi­
annual
or
annual
reports.

6)
Estimating
the
Burden
and
Cost
of
Collection
Page
11
of
13
a)
Estimating
Respondent
Burden
The
basis
of
the
analysis
is
the
identification
of
the
principal
steps
involved
in
complying
with
EPA
reporting
requirements
and
the
estimated
burden
associated
with
each
step.
The
burden
has
been
estimated
by
identifying
the
number
of
times
the
step
will
be
undertaken
and
the
number
of
hours
required
to
complete
each
step.
This
information
is
based
on
quarterly
reporting
requirements,
or
less,
as
well
as
EPA
experience
with
the
CFC
(
chlorofluorocarbon)
allowance
system.

b)
Estimating
Respondent
Cost
To
determine
the
respondent
costs,
the
average
hourly
wage
rate
of
$
76.88
for
the
chemical
industry
was
derived
from
1999
hourly
rate
information
for
managerial
and
technical
staff
provided
by
the
Bureau
of
Labor
Statistics.
Burden
hours
per
occurrence,
as
described
above,
were
multiplied
by
the
labor
rate
to
determine
respondent
costs.

c)
Estimating
Agency
Burden
and
Cost
The
basis
of
this
analysis
is
the
identification
of
the
steps
involved
in
implementing
and
operating
the
system.
The
costs
associated
with
each
step
have
been
estimated
by
identifying
the
number
of
times
the
step
will
be
undertaken,
the
number
of
hours
required
to
complete
each
step,
and
the
total
dollar
cost.
Costs
are
subdivided
into
Agency
and
contractor
costs.
The
hourly
rates
for
EPA
technical
and
managerial
staff
of
$
36.14
and
$
50.24,
respectively,
were
derived
from
the
GS
Salary
Schedule.
These
hourly
basic
rates
are
from
the
Office
of
Personnel
Management
website.
EPA
then
multiplied
hourly
rates
by
the
standard
government
benefits
multiplication
factor
of
1.6.
The
cost
of
contractor
time
and
overhead
is
valued
at
$
75.00
per
hour
and
a
6
percent
contract
fee
is
included.
The
number
of
occurrences
of
each
activity
is
based
on
quarterly
reporting
requirements
as
well
as
EPA
experience
with
the
CFC
allowance
tracking
system.

d)
Estimating
the
Respondent
Universe
and
Total
Burden
and
Costs
EPA
estimates
that
seven
producers
and
fourteen
importers
will
be
subject
to
the
allowance
program.
Fourteen
companies
also
function
as
exporters
and
importers
from
time
to
time.
EPA
also
estimates
fifteen
entities
will
petition
for
HCFC­
141b
exemption
allowances.
The
number
of
firms
subject
to
the
allowance
program
was
determined
by
examining
historical
production
and
consumption
data
for
HCFCs.
This
totals
fifty­
two
respondents.

e)
Bottom
Line
Burden
Hours
and
Cost
Tables
EPA's
development
and
dissemination
of
the
Guidance
Document
for
the
Stratospheric
Ozone
Protection
Program
After
January
1,
1996,
was
designed
to
inform
all
entities
potentially
subject
to
the
reporting
and
recordkeeping
requirements
of
the
accelerated
phaseout
regulation.
The
Guidance
Document
explains
the
reasons
the
information
is
collected
and
the
ways
in
which
the
information
is
used
by
the
Agency.
The
preamble
to
the
amended
regulation
and
the
Guidance
Document
both
cite
the
authority
under
which
respondents
may
claim
information
to
be
confidential.
The
Guidance
Document
and
the
final
industry
version
of
the
electronic
reporting
diskette
will
be
amended
to
include
a
clear
description
of
the
proposed
reporting
requirements
for
HCFCs
and
will
include
a
clear
burden
statement.
All
forms
currently
cite
the
OMB
Control
Number
and
will
be
amended
to
include
the
expiration
date
once
approved.
Page
12
of
13
The
industry
reporting
burden
is
estimated
in
Table
I.
The
estimate
includes
the
time
needed
to
comply
with
EPA's
reporting
requirements,
as
well
as
that
used
for
the
completion
of
the
reports
under
the
amended
regulations.

The
allowance
system
rule
for
ozone­
depleting
substances
proposes
requiring
respondents
to
submit
reports
to
the
Agency
and
maintain
records.
Operating
and
maintenance
(
O&
M)
costs
include
activities
and
systems
to
submit
transfer
requests,
maintain
data
on
production,
imports,
and
exports,
prepare
and
submit
reports,
and
prepare
and
submit
petition
import
requests.
The
O&
M
costs
are
estimated
at
$
253,089
for
the
HCFC
allowance
system
rule.

Agency
burden
is
reported
in
Table
II.
The
Agency,
with
contractor
support,
will
revise
the
Tracking
System
to
incorporate
changes
due
to
regulatory
revisions.
The
estimated
hours
are
518
hours
for
revising
the
Tracking
System
and
guidance
document.

The
data
in
the
Tracking
System
is
compiled
and
reviewed
at
the
end
of
each
year
to
ensure
statutory
compliance
with
CAAA
and
to
ensure
U.
S.
compliance
with
obligations
under
the
Montreal
Protocol.
The
Agency
hours
for
activities
related
to
review
of
information
gathered
under
this
program
are
estimated
to
be
1,834
hours.

The
Agency
reviews
requests
from
producers,
importers,
and
exporters,
including
petitions
to
import
used
HCFCs,
as
they
are
submitted
by
individuals
or
companies.
The
number
of
petitions
the
Agency
reviews
may
vary.
In
future
years,
EPA
estimates
the
Agency
will
devote
approximately
390
hours
reviewing
requests
from
these
firms.

Summary
Bottom
Line
Burden
Hours
and
Costs:

a)
Respondent
annual
burden
hours
3,292
b)
Respondent
annual
labor
costs
$
253,089
c)
Respondent
capital/
start­
up
costs
$
219,108
d)
Respondent
O
&
M
costs
$
253,089
e)
Agency
annual
burden
hours
3,345
f)
Agency's
annual
labor
costs
$
200,628
(
f)
Reasons
for
Change
in
Burden
Not
applicable
g)
Burden
Statement
Table
I
presents
the
average
annual
respondent
burden.
For
companies
affected
by
the
regulations
for
the
HCFC
allowance
system,
the
reporting
burden
is
estimated
to
be
an
average
of
129.48
hours
per
respondent
per
year.
This
estimate
includes
time
for
preparing
and
submitting
reports.
The
recordkeeping
burden
for
companies
affected
by
the
allowance
for
HCFCs
is
estimated
to
average
10.14
hours
per
respondent
per
year.
This
estimate
includes
time
for
gathering
information,
and
developing
and
maintaining
records.

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
Page
13
of
13
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.

Send
comments
on
the
Agency's
need
for
this
information,
the
accuracy
of
the
provided
burden
estimates,
and
any
suggested
methods
for
minimizing
respondent
burden,
including
through
the
use
of
automated
collection
techniques
to
the
Director,
Collection
Strategies
Division,
U.
S.
Environmental
Protection
Agency
(
2822T),
1200
Pennsylvania
Ave.,
NW,
Washington,
D.
C.
20460;
and
to
the
Office
of
Information
and
Regulatory
Affairs,
Office
of
Management
and
Budget,
725
17th
Street,
NW,
Washington,
DC
20503,
Attention:
Desk
Officer
for
EPA.
Include
the
EPA
ICR
number
and
OMB
control
number
in
any
correspondence.

APPENDIX
I
Collection
Activity
CFR
Citation
for
Recordkeeping
and
Reporting
Producer's
Report
82.24
(
b)

Importer's
Report
82.24
(
c)
(
f)

Notification
of
Trade
82.23,
82.24
Export
Report
82.24
(
d)

Transformation
&
Destruction
82.24
(
b)
(
c)
(
e)

HCFC­
141b
exemption
allowance
82.24
(
b)
(
h)

Transhipment
Report
82.24
(
c)
(
5)
