September
10,
2004
(
10:
41AM)

Supporting
Statement
for
Information
Collection
Request
Recordkeeping
and
Reporting
Requirements
for
the
Fuel
Quality
Regulations
for
Diesel
Fuel
Sold
in
2001
and
Later
Years;
for
Tax­
exempt
(
Dyed)
Highway
Diesel
Fuel;
and
for
Nonroad
Locomotive
and
Marine
Diesel
Fuel
EPA
ICR
1718.06
Transportation
and
Regional
Programs
Division
Office
of
Transportation
and
Air
Quality
U.
S.
Environmental
Protection
Agency
September
10,
2004
(
10:
41AM)

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
Diesel
Fuel
Sold
in
2001
and
Later
Years;
for
Tax­
Exempt
(
Dyed)
Diesel
Fuel;
and
for
Nonroad,
Locomotive,
and
Marine
Diesel
Fuel.

OMB
Control
Number:
2060­
0308
1(
b)
Short
Characterization/
Abstract
Fuel
Quality
Regulations
for
Diesel
Fuel
Sold
in
2001
and
Later
Years
(
covered
by
Current
EPA
ICR
No.
1718.04,
expiring
9/
30/
04).

The
pollution
emitted
by
diesel
engines
contributes
greatly
to
our
nation's
continuing
air
quality
problems.
On
January
18,
2001,
EPA
published
a
final
rule
that
would
establish
standards
for
heavy­
duty
engines
and
vehicles
and
for
highway
diesel
sulfur
control.
New
emissions
standards
for
these
engines
and
vehicles
will
apply
starting
with
model
year
2007.
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
2006,
with
all
highway
diesel
fuel
required
to
meet
the
15
ppm
standard
by
2010.
See
"
Control
of
Air
Pollution
from
New
Motor
Vehicles:
Heavy­
Duty
Engine
and
Vehicle
Standards
and
Highway
Diesel
Fuel
Sulfur
Control
Requirements,"
66
FR
5002
(
January
18,
2001).

The
diesel
sulfur
rule
contains
many
types
of
flexibility
aimed
at
reducing
burdens
on
small
businesses
and
those
faced
with
particular
hardships.
In
order
to
take
advantage
of
these
provisions,
refiners
had
to
have
applied
by
December
31,
2001.
For
more
information,
please
refer
to
the
Supporting
Statement
for
Recordkeeping
and
Reporting
Requirements
for
the
Fuel
Quality
Regulations
for
Diesel
Fuel
Sold
in
2001
and
Later
Years,
EPA
ICR
Number
1718.04,
expiring
September
1,
2004.

For
example,
exemptions
are
possible
for
research
and
development
purposes
and
may
be
applied
for
at
any
time.
The
specific
recordkeeping
and
reporting
requirements
for
this
program,
and
associated
flexibilities,
are
discussed
below.
In
addition,
in
the
event
of
an
unexpected
disaster
such
as
fire
or
September
10,
2004
(
10:
41AM)

2
flood,
a
refiner
may
request
temporary
relief
from
complying
with
regulatory
provisions.
As
with
research
and
development
exemptions,
such
temporary
relief
may
be
requested
at
any
time.

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
diesel
sulfur
control
requirements
under
the
diesel
rule.
This
oversight
by
EPA
is
necessary
to
ensure
attainment
of
the
air
quality
goals
of
the
diesel
program.

The
diesel
sulfur
regulations
include
provisions
for
generation
of
credits,
which
are
discussed
in
greater
detail
below.
Credits
have
their
own
recordkeeping
and
reporting
associated
with
them,
to
ensure
legitimacy
of
the
credit
program
and
to
protect
environmental
benefit.

The
scope
of
the
recordkeeping
and
reporting
requirements
for
each
type
of
party
(
e.
g.,
refiners,
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.

Approximately
125
diesel
refineries,
75
import
facilities,
and
1,350
terminals
are
affected
by
the
recordkeeping
and
reporting
requirements.
In
addition,
approximately
five
(
5)
foreign
refiners
are
assumed.

Dyeing
of
Tax­
Exempt
Diesel
Fuel
(
covered
by
current
EPA
ICR
No.
1718.03,
expiring
9/
30/
04).

In
section
211(
g)
and
211(
i)
of
the
Clean
Air
Act
(
Act),
September
10,
2004
(
10:
41AM)

3
Congress
mandated
that
diesel
fuel
used
in
motor
vehicles
("
highway
diesel
fuel")
must
meet
certain
quality
standards,
including
a
limitation
on
sulfur
content.
The
Act
required
EPA
to
promulgate
and
enforce
a
rule
to
implement
the
statutory
requirements.
The
Act
specifically
provides
that
EPA
may
require
that
high
sulfur
diesel
fuel
("
off­
road
diesel
fuel")
be
dyed
to
aid
in
keeping
the
fuels
segregated.
The
dye
allows
parties
in
the
fuel
distribution
chain
and
the
EPA
to
readily
detect
whether
fuel
is
high
sulfur
diesel
or
low
sulfur
diesel.
Because
of
an
Internal
Revenue
Service
(
IRS)
requirement
that
certain
taxexempt
low
sulfur
diesel
fuel
also
be
dyed
(
see
further
explanation
in
2(
a)
below),
EPA,
in
its
rule,
required
parties
who
transfer
dyed
low
sulfur
highway
diesel
fuel
to
include
a
notice
on
the
customary
business
transfer
document
that
states
the
product
is
tax­
exempt
fuel
that
meets
EPA
highway
diesel
fuel
standards.
This
allows
EPA
and
parties
in
the
distribution
chain
to
make
use
of
the
EPA
dye
requirement
despite
the
IRS
requirement
that
would
otherwise
make
the
presence
of
dye
ambiguous
in
meaning
for
EPA
purposes.
Approximately
2,000
facilities,
generally
diesel
fuel
terminals,
dye
tax­
exempt
low
sulfur
diesel
fuel
and
have
it
distributed
via
approximately
8,000
truck
carriers
to
approximately
10,000
wholesale
purchaserconsumer
end
users.
It
is
estimated
that
each
facility
dyes
about
200
batches
of
highway
diesel
fuel
annually.

Nonroad,
Locomotive,
and
Marine
Diesel
Fuel.
(
Originally
proposed
under
EPA
ICR
No.
1718.07
and
included
in
this
renewal
in
response
to
OMB
comments.)

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
light­
duty
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
September
10,
2004
(
10:
41AM)

4
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
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
September
10,
2004
(
10:
41AM)

1
Table
IV
indicates
the
burdens
associated
with
recordkeeping
and
reporting
in
2010
and
beyond.
These
are
provided
for
reference
and
comment.
Since
they
would
not
yet
apply
during
the
period
covered
by
this
renewal,
they
are
not
included
in
the
total
burden
estimates
in
1(
b)
and
6(
a)
and
(
b)
of
this
Supporting
Statement.

5
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.

Burden
Estimate
It
is
estimated
that
there
will
be
444,110
reports,
312,233
burden
hours,
and
total
annual
costs
(
labor,
overhead
and
maintenance,
and
purchased
services)
of
$
28,795,145.
This
figure
includes
any
initial
burden
associated
with
learning
and
adapting
to
the
new
requirements.
This
ICR
combines
existing
recordkeeping
and
reporting
requirements
from
two
related
ICRs,
1718.03
and
1718.04,
as
described
above.
Both
of
these
ICRs
expire
on
September
30,
2004.
In
addition,
the
estimate
includes
burdens
applicable
under
the
Nonroad,
Locomotive,
and
Marine
Diesel
program
through
2007.1
Copies
of
the
"
previous"
supporting
statements
for
these
ICRs
have
been
placed
in
the
docket.
The
table
in
section
6
below
("
Estimating
the
Burden
and
Cost
of
the
Collection")
explains
individual
respondents
and
reports
in
greater
detail.
September
10,
2004
(
10:
41AM)

6
2.
NEED
FOR
AND
USE
OF
THE
COLLECTION
2(
a)
Need/
Authority
For
The
Collection
Fuel
Quality
Regulations
for
Diesel
Fuel
Sold
in
2001
and
Later
Years
EPA
issued
a
final
rule
establishing
a
comprehensive
national
control
program
that
will
regulate
the
heavy­
duty
vehicle
and
its
fuel
as
a
single
system.
As
part
of
this
program,
new
emissions
standards
will
begin
to
take
effect
in
model
year
2007,
and
will
apply
to
heavy­
duty
highway
engines
and
vehicles.
These
standards
are
based
on
the
use
of
highefficiency
catalytic
exhaust
emission
control
devices
or
comparably
effective
advanced
technologies.
Because
these
devices
are
damaged
by
sulfur,
we
are
also
reducing
the
level
of
sulfur
in
highway
diesel
fuel
significantly
by
mid­
2006.
The
program
provides
substantial
flexibility
for
refiners,
especially
small
refiners,
and
for
manufacturers
of
engines
and
vehicles.
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
diesel
fuel;
and
(
2)
Ensure
that
these
sources
comply
with
the
standards
and
limitations
of
the
rules.

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

Sections
114
and
208
of
the
Clean
Air
Act
(
CAA),
42
U.
S.
C.
September
10,
2004
(
10:
41AM)

7
§
§
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
motor
vehicle
diesel
fuel
can
be
found
in
40
CFR
Part
80,
Regulation
of
Fuels
and
Fuel
Additives.
The
regulations
associated
with
this
information
collection
are
contained
in
the
final
rule
for
the
diesel
rulemaking.
These
regulations
are
not
attached
to
this
statement
due
to
their
length
and
general
technical
nature.
The
final
rule
was
published
in
the
Federal
Register
on
January
18,
2001.
(
66
FR
5002.)

Tax
Exempt
Diesel
Fuel
Section
211(
i)
of
the
Act,
42
U.
S.
C.
§
7545(
i),
provides
that
the
Administrator
may
require
the
use
of
dye
in
high
sulfur
diesel
fuel
to
aid
in
segregating
it
from
low
sulfur,
highway
diesel
fuel.
The
EPA
rule
at
40
C.
F.
R.
§
80.29
requires
that
high
sulfur
diesel
be
dyed.
This
greatly
aids
EPA
in
enforcing
the
Act's
requirement
to
segregate
highway
low
sulfur
diesel
fuel
from
high
sulfur
diesel
fuel.
It
also
aids
parties
in
the
distribution
chain
to
determine
if
the
fuel
has
been
contaminated
with
high
sulfur
diesel
fuel.

The
Internal
Revenue
Service
also
requires
high
sulfur
diesel
fuel
to
be
dyed,
but
additionally
requires,
for
tax
reasons,
that
low
sulfur
tax
exempt
highway
diesel
fuel
also
be
dyed
(
such
fuel
is
sold
to
governmental
entities
and
various
other
parties).
This
IRS
requirement
would
have
largely
nullified
the
effectiveness
of
the
Congressionally
authorized
EPA
dye
requirement.
Since
both
high
sulfur
diesel
and
some
low
sulfur
diesel
fuels
are
dyed,
it
would
be
impossible
to
determine
from
the
presence
of
the
dye
whether
the
fuel
were
inappropriate
for
motor
vehicle
(
highway)
use.
Therefore,
EPA
required
in
the
rule
(
see
40
CFR
80.29(
c)(
1))
that
a
party
transferring
dyed
low
sulfur
diesel
fuel
must
state
on
the
customary
business
practice
(
CBP)
product
transfer
document
(
PTD)
that
the
fuel
is
tax
exempt
and
meets
the
regulatory
requirements
for
highway
use.
PTDs
must
be
retained
for
five
years
(
see
40
CFR
80.29(
c)(
2)).
EPA
determined
that
these
were
the
least
burdensome
reporting
and
recordkeeping
requirements
that
would
allow
the
dye
requirement
to
remain
useful
to
EPA
and
regulated
industry.
The
volume
of
diesel
fuel
affected
by
these
requirements
is
a
very
small
percentage
of
all
diesel
fuel
produced.
The
requirements
were
promulgated
under
authority
of
section
211
of
the
Act,
42
U.
S.
C.
§
7545,
section
114
of
the
Act,
42
U.
S.
C.
§
7414
and
section
208
September
10,
2004
(
10:
41AM)

8
of
the
Act,
42
U.
S.
C.
§
7542.

Nonroad,
Locomotive,
and
Marine
Diesel
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
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.
September
10,
2004
(
10:
41AM)

9
§
§
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
annual
reports
required
by
this
information
collection
to
evaluate
the
compliance
of
parties
involved
in
the
production
and
importation
of
diesel
with
the
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.

The
automatically
printed
notice
on
tax­
exempt
highway
diesel
product
transfer
documents
(
which
EPA
allows
to
be
stated
in
coded
form
to
save
space),
allows
both
EPA
to
determine
if
dyed
product
is
intended
for
highway
use
or
is
high
sulfur
diesel
for
off­
road
use
only.
It
also
helps
industry
to
make
this
determination.

The
EPA's
Office
of
Enforcement
and
Compliance
Assurance,
Air
Enforcement
Division
is
the
governmental
user
of
the
information
contained
in
the
required
records.

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
September
10,
2004
(
10:
41AM)

10
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,
and
refiners
and
importers
subject
to
the
GPA
standards.
Refiners
and
importers
who
are
not
already
registered
with
EPA
must
register
in
accordance
with
the
registration
requirements
under
the
RFG
program.

3(
b)
Public
Notice
Prior
to
Submission
to
OMB
For
the
recordkeeping
and
reporting
requirements
for
diesel
fuel
sold
in
2001
and
later
years
and
for
tax­
exempt
(
dyed)
diesel
fuel,
we
published
a
first
Federal
Register
notice
announcing
the
renewal
on
May
17,
2004.
(
See
69
FR
27919.)
No
comments
were
received
on
that
notice.

For
the
nonroad,
locomotive,
and
marine
diesel
reporting
requirements,
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
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
September
10,
2004
(
10:
41AM)

11
for
both
of
these
fuel
parameters.
The
final
rule
was
published
in
the
Federal
Register
on
June
29,
2004.
(
See
69
FR
38957.)
As
mentioned
above,
the
nonroad,
locomotive,
and
marine
diesel
reporting
requirements
were
included
in
this
ICR
renewal
at
OMB's
request.

3(
c)
Consultations
EPA
has
discussed
aspects
of
this
information
collection
with
representatives
of
regulated
industry
as
part
of
the
development
of
the
underlying
regulations.
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
in
developing
the
diesel
fuel
quality
standard
applicable
from
2001
and
after.
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
proposed
and
final
rules
and
the
specific
provisions
for
qualifying
small
refiners.
A
copy
of
the
Panel's
report
is
available
in
the
rulemaking
docket.
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
and
importers
to
submit
annual
reports
which
will,
by
the
information
contained
therein,
demonstrate
a
party's
compliance
with
the
applicable
sulfur
standards.
Less
frequent
submittal
of
such
reports
would
severely
hinder
EPA's
ability
to
monitor
compliance,
and
would
likely
lead
to
noncompliance.
In
the
case
of
the
dye
requirements,
a
less
frequent
collection
is
not
practical,
since
the
information
must
appear
on
product
transfer
documents
at
the
time
custody
is
transferred.

3(
e)
General
Guidelines
The
requirement
requires
record
retention
for
five
(
5)
years.
The
Agency
believes
this
is
important
to
the
success
of
the
program.
With
the
large
economic
incentive
to
not
comply
September
10,
2004
(
10:
41AM)

12
that
exists
because
of
the
substantial
difference
in
price
that
can
exist
between
low
sulfur
diesel
and
high
sulfur
diesel,
it
is
imperative
that
EPA
maintain
deterrence
by
assuring
that
all
parties
know
that
EPA
will
be
able
to
distinguish
the
difference
between
high
sulfur
and
low
sulfur
deliveries
via
a
review
of
records
generated
in
the
normal
course
of
business
(
CBP).
The
requirement
to
retain
for
5
years
is
consistent
with
other
record
retention
periods
in
the
fuels
regulations,
with
the
applicable
5
year
statute
of
limitations,
and
CBP.
Most
entities
already
keep
these
records
for
5
or
more
years
for
tax
and
other
business
purposes.

3(
f)
Confidentiality
Proprietary
information
is
routinely
submitted
by
refiners
and
importers
as
part
of
annual
reports
and
as
part
of
requests
for
research
and
development
or
hardship
exemptions.
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
COLLECTED
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)

Recordkeeping
and,
in
some
cases,
reporting
are
required
by
the
following
industries,
with
SIC
Code/
2002
NAICS
Code
indicated
in
parentheses:
refiners
(
2911/
324110),
importers
(
5172/
424720),
pipelines
(
4613),
petroleum
marketers
and
and
other
distributors
(
5171,5172/
424710,
424720),
terminals
(
5171/
424710),
fuel
oil
September
10,
2004
(
10:
41AM)

13
dealers
(
5172/
424720),
fuel
additive
manufacturers
(
2911/
424720),
and
petroleum
retailers
and
wholesale
purchaser­
consumers
(
5171,
5172/
424710,424720).

Some
of
the
required
records
­
like
product
transfer
documents
­
(
PTDs)
are
CBP
documents.
Diesel
fuel
additive
manufacturers
who
sell
bulk
additives
to
terminals
will
have
a
new
requirement
to
generate
PTDs
describing
the
sulfur
content
of
such
additives.
This
burden
on
additive
manufacturers
should
be
minimal.
Without
the
required
records,
EPA
would
be
unable
to
enforce
the
diesel
sulfur
requirements.

4(
b)
Information
Requested
1.
Data
Items
Knowledge
of
the
following
definitions
at
40
CFR
Part
2
is
important
for
a
thorough
understanding
of
the
reporting
and
recordkeeping
requirements:

"
Diesel
fuel"
means
any
fuel
sold
in
any
state
or
Territory
of
the
United
States
and
suitable
for
use
in
diesel
motor
vehicles,
diesel
motor
vehicle
engines
or
diesel
nonroad
engines,
and
which
is
commonly
or
commercially
known
or
sold
as
diesel
fuel.

"
Motor
vehicle
diesel
fuel"
means
any
diesel
fuel,
or
any
distillate
product,
that
is
used,
intended
for
use,
or
made
available
for
use,
as
a
fuel
in
diesel
motor
vehicles
or
diesel
motor
vehicle
engines.

"
Refinery"
means
a
plant
in
the
United
States
at
which
gasoline
or
diesel
fuel
is
produced.

"
Foreign
refinery"
means
a
refinery
that
is
located
outside
the
United
States.

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

"
Small
refiner"
means
a
refiner
who
produces
diesel
fuel
at
a
refinery
by
processing
crude
through
refinery
units,
employed
fewer
than
an
average
of
1,500
people
from
January
1,
1999
to
January
1,
2000,
had
an
average
crude
capacity
less
than
or
equal
to
155,000
barrels
per
calendar
day
(
bpcd)
for
1999,
and
that
has
submitted
an
application
and
received
EPA
approval
under
40
CFR
§
80.550.
September
10,
2004
(
10:
41AM)

14
"
GPA"
refers
to
the
"
geographic
phase­
in
area"
as
explained
under
the
gasoline
sulfur
regulations
at
40
CFR
§
80.217.

"
GPA
refiner"
means
a
refiner
that
has
submitted
an
application
and
received
EPA
approval
to
continue
the
GPA
standards
in
2007
and
2008
under
40
CFR
§
80.540.

"
Importer"
means
a
person
who
imports
gasoline,
gasoline
blending
stocks
or
components,
or
diesel
from
a
foreign
country
into
the
United
States
(
including
the
Commonwealth
of
Puerto
Rico,
the
Virgin
Islands,
Guam,
American
Samoa,
and
the
Northern
Mariana
Islands.

"
Sulfur
percentage"
is
the
percentage
of
sulfur
in
diesel
fuel
by
weight,
as
determined
using
one
of
the
test
methods
specified
in
the
regulations.

"
Batch
of
motor
vehicle
diesel
fuel"
means
a
quantity
of
diesel
fuel
which
is
homogenous
with
regard
to
those
properties
that
are
specified
for
motor
vehicle
diesel
fuel
under
40
CFR
subpart
I.

"
Motor
vehicle
diesel
fuel
additive"
means
any
substance
not
composed
of
purely
carbon
and/
or
hydrogen,
or
of
diesel
blendstocks,
that
is
added,
intended
for
adding,
used,
or
offered
for
use
in
motor
vehicle
diesel
fuel
subject
to
its
production.
September
10,
2004
(
10:
41AM)

15
2.
Recordkeeping
and
Reporting
Requirements
Recordkeeping
and
Reporting
Requirements
for
Diesel
Fuel
Sold
in
2001
and
Later
Years
a)
General
Recordkeeping
and
Reporting
Requirements
Applicable
to
Refiners
and
Importers
Registration.
(
See
40
CFR
§
80.597.)
The
diesel
sulfur
program
requires
that
refiners
and
importers
who
are
either
currently
producing
and
supplying
highway
diesel
fuel,
or
that
expect
to
do
so
by
June
1,
2006,
must
register
with
EPA
by
December
31,
2001.
Where
a
registrant
has
already
provided
information
under
the
reformulated
gasoline
and
anti­
dumping
program
(
see
40
CFR
§
80.76),
that
registrant
is
not
required
to
re­
register
under
this
diesel
program.
Most
refiners
and
importers
will
have
already
registered,
but
we
have
estimated
15
new
registrants
or
updates
to
previously
filed
registrations
may
continue
to
be
received
each
year.
Registration
information
can
be
submitted
on
the
existing
company
and
facility
forms
used
for
reformulated
gasoline
and
anti­
dumping.

Pre­
Compliance
Reports.
(
See
40
CFR
§
80.594.)
By
June
1,
2003,
all
refiners
and
importers
must
generally
report
on
their
progress
towards
meeting
the
diesel
sulfur
standard
of
15
ppm.
Pre­
compliance
reports
are
also
due
on
June
1,
2004
and
June
1,
2005.
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
indicating
progress
toward
making
necessary
capital
commitments
and
modifications
to
produce
15
ppm
diesel
fuel
by
the
appropriate
date.
All
pre­
compliance
reporting
ends
with
the
annual
report
due
on
June
1,
2005.
Pre­
compliance
reports
must
be
accompanied
by
a
written,
signed
certification
by
a
responsible
corporate
officer.

Annual
reports,
underlying
records,
and
electronic
reporting.
(
See
40
CFR
§
§
80.592(
b)
and
80.593.)

Beginning
with
June
1,
2006
or
the
first
compliance
period
during
which
credits
are
generated,
any
refiner
or
importer
who
produces
or
imports
diesel
fuel
subject
to
the
500
ppm
sulfur
September
10,
2004
(
10:
41AM)

16
standard
or
who
generates
credits
under
the
diesel
program
must
submit
annual
reports
to
EPA.
The
annual
reports
are
due
the
last
day
of
February
for
the
previous
year's
activity.

Annual
reports
must
contain
the
following
information:
name
of
the
company
and
registration
number,
volume
and
quality
data
for
all
diesel
fuel
produced
for
sale
within
the
United
States
during
the
compliance
period,
what
percentage
of
fuel
met
the
15
ppm
and
500
ppm
sulfur
standards,
and
information
regarding
credits
generated,
used,
and/
or
transferred.
(
See
40
CFR
§
80.593.)
Small
refiners
will
be
required
to
provide
minimal
additional
information,
which
varies
according
to
which
small
refiner
option
the
refiner
will
be
using.
(
See
section
IV.
C
of
the
January
18,
2001
Federal
Register
notice
and
the
small
refiner
discussion
below.)
All
annual
reports
must
be
accompanied
by
a
written,
signed
certification
by
a
responsible
corporate
officer.

Records
related
to
the
annual
reports
must
be
maintained
for
at
least
five
years.
Beginning
June
1,
2006
or
the
first
compliance
period
during
which
credits
are
generated,
whichever
is
earlier,
any
refiner
or
importer
continuing
to
produce
500
ppm
motor
vehicle
diesel
fuel
must
keep
records
that
including
the
following
information
for
each
batch
of
diesel
fuel
produced
by
all
refiners
or
imported
by
all
import
facilities
subject
to
one
of
the
flexibilities:

1)
batch
volume;
2)
batch
number;
3)
date
of
production
or
import;
4)
PADD
of
production/
import;
and
5)
designation
of
the
batch
as
meeting
the
15
ppm
or
500
ppm
sulfur
standard.

For
foreign
refiners
and
importers,
designations
and
other
records
required
under
40
CFR
§
80.620
are
also
required.
Importers
are
required
to
keep
records
identifying
and
verifying
the
source
of
each
batch
of
certified
and
non­
certified
foreign
refiner
diesel
fuel
under
40
CFR
§
80.620.
(
See
40
CFR
§
80.592(
c).)

For
all
refiners
and
importers,
who
generate
credits,
the
following
records
must
be
kept
separately
for
each
refinery
and
by
PADD
of
production/
import
for
for
each
credit
trading
area
(
in
the
case
of
an
importer):
September
10,
2004
(
10:
41AM)

17
1)
the
number
of
credits
possessed
at
the
beginning
of
the
year;
5)
the
number
of
credits
generated
during
the
year;
6)
the
number
of
credits
used
during
the
year;
7)
information
about
any
party
from
whom
credits
were
obtained
or
to
whom
credits
were
traded,
including
that
party's
EPA
registration
number;
8)
any
credits
that
will
carry
over
into
(
the)
subsequent
year(
s);
and
9)
any
other
commercial
documents
related
to
transfer
of
credits.

It
is
our
intention
to
accept
all
diesel
program
annual
reports
in
a
highly
simplified,
electronic
format
(
i.
e.,
either
within
a
common
commercial
spreadsheet
or
as
a
comma
delimited
text
file).
We
believe
that
this
will
minimize
the
cost
of
reporting
for
regulated
parties
and,
based
upon
our
experience
with
electronic
reporting
in
other
fuels
programs,
will
be
widely
embraced
by
regulated
parties.

We
will
request
encryption
in
order
maintain
strict
protection
of
these
submissions,
which
are
generally
covered
by
a
claim
of
"
confidential
business
information"
(
CBI).
The
signature
and
certification
by
the
responsible
corporate
officer
will
be
in
writing.
In
order
to
ensure
the
integrity
of
electronic
files,
a
hash
value
will
be
included
to
identify
the
annual
report
file(
s)
submitted.
(
A
hash
algorithm
computes
a
unique
and
condensed
representation
of
a
message
or
a
data
file.
This
"
hash
value"
and
is
useful
for
identification
and
evidentiary
purposes.)

All
annual
reporting
under
this
program
ends
with
the
report
due
on
the
last
day
of
February
2011
and
covering
compliance
year
2010.
After
that
date,
all
motor
vehicle
diesel
fuel
will
have
to
meet
the
15
ppm
standard
and
there
is
no
further
purpose
to
be
served
by
annual
reporting.

Registration
information
and
reports
will
be
entered
into
an
EPA
Office
of
Air
and
Radiation,
Office
of
Transportation
and
Air
Quality
computer
database.
Information
covered
by
a
claim
of
business
confidentiality
will
be
handled
in
accordance
with
standard
Agency
procedures
regarding
confidential
business
information
and
the
applicable
provisions
at
40
CFR
Part
2.
September
10,
2004
(
10:
41AM)

18
Product
transfer
documents.
(
See
40
CFR
§
80.590.)
All
parties
in
the
distribution
system
are
required
to
keep
product
transfer
documents
(
PTDs),
but
refiners
and
importers
are
also
required
to
initially
generate
and
provide
information
on
commercial
PTDs
that
identify
diesel
fuel
for
highway
use
complying
with
either
the
15
ppm
or
500
ppm
standard
or
identifying
the
diesel
fuel
as
meeting
certain
other
specific
needs.
For
example,
PTDs
will
be
used
to
identify
diesel
fuel
as
meeting
the
15
ppm
or
500
ppm
sulfur
standard,
as
diesel
fuel
for
export
only,
as
diesel
fuel
for
use
in
specified
Territories,
as
diesel
fuel
for
use
as
research
and
development
fuel
only,
etc.
Product
transfer
documents
are
also
used
to
identify
diesel
fuel
for
use
in
Alaska
and
exempt
from
Federal
dye
requirements.
(
See
40
CFR
§
69.51(
a)(
2)
and
(
c)(
2).)

The
record
retention
time
for
most
records
is
five
years,
which
is
the
same
as
under
other
fuels
programs.
Creation
and
retention
of
PTDs
does
not
create
a
new
requirement,
but
there
will
be
a
one
time
expense
associated
with
developing
new
computer
product
codes
or
descriptive
phrases
to
identify
product.
Product
codes
may
be
used
by
most
parties
if
such
codes
are
clearly
understood
by
each
transferee.
Textual
statements
are
to
be
provided
to
truck
carriers,
retailers,
and/
or
wholesale
purchaser­
consumers.
Once
established,
these
product
codes
will
continue
to
be
routinely
used.

Any
additional
burdens
associated
with
PTDs
are
reasonably
expected
to
be
quite
minimal
because
all
parties
already
routinely
receive
transfer
documents
as
a
customary
business
practice
and
generally
maintain
them
for
four
or
five
years
under
state
tax
laws.
Product
transfer
document
information
is
necessary
to
1)
prevent
commingling
of
products
meeting
different
sulfur
standards,
2)
avoid
contamination
of
15
ppm
diesel
with
higher
sulfur
products,
and
3)
prevent
misfueling
of
model
year
2007
and
later
vehicles
with
any
fuel
having
a
sulfur
content
greater
than
15
ppm.
It
is
very
important
that
misfueling
not
occur,
as
it
may
result
in
harm
to
the
vehicles
emissions
controls
and
other
systems.
It
is
important
that
excessive
amounts
of
15
ppm
fuel
not
be
downgraded
in
the
distribution
system
in
order
to
ensure
sufficient
availability
of
15
ppm
compliant
fuel
at
retail.

Product
transfer
documents
for
additives.
(
See
40
CFR
§
50.591.)
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
September
10,
2004
(
10:
41AM)

19
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
not
required
to
test
each
batch
of
diesel
for
its
sulfur
content.
Quality
assurance
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.
Records
retained
would
have
to
indicate
the
location,
date,
time
and
storage
tank
or
truck
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
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.

c)
Applications
for
Research
and
Development
Exemptions.
(
See
40
CFR
§
80.600.)
September
10,
2004
(
10:
41AM)

20
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
provided
information
about
the
site
where
research
is
to
be
conducted
and
the
manner
in
which
records
will
be
kept.
Contact
information
must
be
provided.

d)
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
motor
vehicle
diesel
fuel
under
the
temporary
compliance
option
or
one
of
the
hardship
provisions.
Foreign
refiners
may
seek
to
be
included
under
the
temporary
compliance
option
(
see
40
CFR
§
§
80.530­
80.532),
the
small
refiner
hardship
provisions
(
see
40
CFR
§
§
80.552
and
80.553),
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.
September
10,
2004
(
10:
41AM)

21
e)
Recordkeeping
and
reporting
that
is
specific
to
the
generation
of
early
credits.
(
See
40
CFR
§
§
80.531
and
80.532.)

There
are
two
types
of
early
credits
under
this
program:
1)
credits
generated
after
May
31,
2005
and
before
June
1,
2006,
and
2)
credits
generated
after
June
1,
2001
but
before
May
31,
2005.
For
credits
falling
under
1),
the
refiner
would
have
to
submit
information
demonstrating
that
15
ppm
diesel
fuel
produced
earlier
will
be
segregated
and
not
commingled
with
500
ppm
diesel
fuel.
No
early
credits
may
be
generated
by
any
refiner
who
does
not
submit
a
notification
to
EPA
and
demonstrate
how
it
will
ensure
segregation
of
its
15
ppm
and
500
ppm
fuel.
For
credits
generated
under
2),
the
refiner
must
demonstrate
that
the
15
ppm
fuel
is
actually
used
in
vehicles
meeting
the
2007
particulate
matter
standard
or
in
retro­
fitted
vehicles
that
are
achieve
comparable
emissions
levels.
No
credits
may
be
claimed
by
a
refiner
who
does
not
submit
the
appropriate
notifications
to
EPA.
September
10,
2004
(
10:
41AM)

22
Recordkeeping
and
Reporting
for
Tax­
Exempt
(
Dyed)
Diesel
Fuel
(
See
40
CFR
§
80.29.)

Any
person
who
transfers
custody
or
title
to
highway
diesel
fuel
that
is
dyed
must
provide
documentation
to
the
transferee
that
the
fuel
meets
highway
diesel
fuel
requirements
and
is
dyed
pursuant
to
IRS
requirements.
Diesel
fuel
terminals
are
normally
the
parties
who
add
the
dye
to
low
sulfur
tax
exempt
diesel
and
therefore
are
the
parties
who
initiate
the
documentation
to
the
end
user.
EPA
allows
parties
to
use
brief
code
language
to
meet
this
requirement.
The
transferor
and
transferee
must
keep
the
document
for
five
years.
The
Agency
allows
the
use
of
electronic
recordkeeping.

Recordkeeping
and
Reporting
for
Nonroad,
Locomotive,
and
Marine
Diesel
Fuel
j.
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
September
10,
2004
(
10:
41AM)

23
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
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.)

i.
Designate
and
Track
Reporting
Requirements
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.

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.

ii.
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
September
10,
2004
(
10:
41AM)

24
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
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.

iii.
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
September
10,
2004
(
10:
41AM)

25
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
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
September
10,
2004
(
10:
41AM)

26
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
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
September
10,
2004
(
10:
41AM)

27
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
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
September
10,
2004
(
10:
41AM)

28
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
above.
September
10,
2004
(
10:
41AM)

29
5.
THE
INFORMATION
COLLECTED
­
AGENCY
ACTIVITIES,
COLLECTION
METHODOLOGY,
AND
INFORMATION
MANAGEMENT
5(
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.


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
September
10,
2004
(
10:
41AM)

30
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.
Electronic
submissions
should
be
encrypted
and
must
contain
a
"
hash
value,"
as
discussed
above
in
section
4.

The
product
transfer
document
information
can
be
included
on
standard
transfer
documentation
customarily
used
in
the
ordinary
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.
The
major
reporting
requirements
apply
to
refiners
and
importers
of
diesel
,
which
are
not
usually
small
businesses.
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,
have
no
mandatory
requirements
other
than
maintaining
product
transfer
documents,
which
is
already
done
in
the
ordinary
September
10,
2004
(
10:
41AM)

31
course
of
business.
September
10,
2004
(
10:
41AM)

2
See
http://
stats.
bls.
gov/
news.
release/
ecet.
t12.
htm.
(
Accessed
April
8,
2004.)
Please
note
that
a
different
table
was
used
for
the
Nonroad,
Locomotive
and
Marine
Diesel
ICR
proposed
as
1718.07.
For
consistency,
this
supporting
statement
uses
the
table
cited
for
all
calculations.

32
6.
ESTIMATING
THE
BURDEN
AND
COST
OF
THE
COLLECTION
6(
a)
and(
b)
Estimating
Respondent
Burdens
and
Costs
Several
reporting
burdens
associated
with
this
program
are
one­
time
burdens
associated
with
the
start
of
the
program.
For
example,
there
is
a
one­
time
reporting
burden
associated
with
registration
(
for
those
parties
who
are
not
already
registered
under
the
reformulated
gasoline
and
anti­
dumping
program
or
gasoline
sulfur
program).
There
is
also
a
one­
time
reporting
burden
associated
with
each
application
under
various
available
compliance
options,
including
the
small
refiner,
GPA,
and
temporary
hardship
provisions.

QA
testing
of
batches
of
diesel
fuel
under
this
program
is
voluntary.
Such
testing
is
performed
by
many
parties
in
the
normal
course
of
business.
There
is
an
annualized
capital
cost
for
the
equipment
necessary
for
the
batch
testing.

Third
party
activity,
the
transmittal
or
storage
of
producttransfer
documents,
is
a
customary
business
practice.
For
most
reporting
requirements,
the
only
operating
and
maintenance
(
O&
M)
costs
are
for
copying
and
postage/
courier
fees.
Some
electronic
reports
may
be
encrypted
and
sent
via
e­
mail
or
diskette.
There
is
a
very
modest
capital
cost
for
encryption
software.

Three
labor
categories
are
involved:
managerial
(
includes
legal
and
professional
review),
technical,
and
clerical.
According
to
the
Bureau
of
Labor
Statistics,
Employer
Costs
for
Employee
Compensation,
"
Table
12
­
Private
industry,
manufacturing,
and
non­
manufacturing
industries
by
occupational
group
(
December,
2003),"
2
the
following
wages
and
benefits
apply
by
category:

Wages
and
Benefits
Managerial
$
49.30
per
hour
Technical
$
32.31
per
hour
September
10,
2004
(
10:
41AM)

33
Clerical
$
22.42
per
hour
Doubling
for
company
overhead
beyond
wages
and
benefits,
and
for
convenience,
rounding
to
the
dollar,
gives
the
following
rates
for
this
ICR:

Total
Employer
Cost
Managerial
$
99
per
hour
Technical
$
65
per
hour
Clerical
$
45
per
hour
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
$
65
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
will
be
submitted
electronically.
September
10,
2004
(
10:
41AM)

3All
know
parties
have
already
registered.
In
existing
ICR
1718.04
(
expiring
9/
30/
04),
we
assumed
a
cost
associated
with
developing
necessary
registration
and
reporting
related
software
or
databases
for
such
parties.
We
have
assumed
15
new
or
updated
registrations
on
a
continuing
basis,
per
year,
and
have
considered
any
development
needs
for
those
parties
throughout
these
tables.

4
Applications
of
this
type
are
only
for
extreme,
unforseen
circumstances
and
are
expected
to
be
very
rare.

5
Estimate
is
based
upon
the
number
of
R&
D
exemptions
requested
in
similar
programs
and
upon
discussion
with
industry
sources.
34
Table
I
­
Annual
Burdens
Related
to
Diesel
Fuel
Sold
in
2001
and
Later
Years
and
Tax­

Exempt
(
Dyed)
Diesel
Fuel
Collection
Activity
Number
of
Respondents
Reports
per
Respondent/
Total
Hours
per
Report/
Total
Labor
Costs
in
$
Non­
postage
Other
Costs
in
$

Refiner
and
importer
registration3
15
1/
15
1/
15
975
Application
for
Relief
Under
Extreme
Circumstances4
2
1/
2
40/
80
5,200
R&
D
Exemption
Application5
8
1/
8
1/
8
520
September
10,
2004
(
10:
41AM)

Collection
Activity
Number
of
Respondents
Reports
per
Respondent/
Total
Hours
per
Report/
Total
Labor
Costs
in
$
Non­
postage
Other
Costs
in
$

35
Refiners'
and
importers'

database
and
software
programming
needs
for
diesel
reporting
and
credit
tracking2
15
1/
15
150/
2,250
146,250
Refiners'
and
Importers'
Precompliance
Reports
200
1/
200
20/
4,000
260,000
Refiners'
and
Importers'

Annual
reports
200
1/
200
40/
8,000
520,000
September
10,
2004
(
10:
41AM)

Collection
Activity
Number
of
Respondents
Reports
per
Respondent/
Total
Hours
per
Report/
Total
Labor
Costs
in
$
Non­
postage
Other
Costs
in
$

6
Product
transfer
documents
are
kept
in
the
normal
course
of
business;
however
there
is
a
one
time
burden
associated
with
creating
new
program
codes
or
phrases.
See
note
2
above.
This
renewal
assumes
a
new
burden
only
for
new
registrants
and
assumes
15
new
registrants
and
15
product
codes.
The
product
codes
will
already
be
in
use
and
the
only
burden
is
to
enter
the
appropriate
code(
s)
into
software
and
to
generate
the
appropriate
code(
s)
on
PTDs.

7
Product
transfer
documents
are
kept
in
the
normal
course
of
business;
however
there
is
a
one
time
burden
associated
with
creating
new
program
codes
or
phrases.
See
note
2
above.
This
renewal
assumes
a
new
burden
only
for
new
registrants
and
assumes
15
new
registrants
who
produce
one
additive
each.
The
product
codes
will
already
be
in
use,
and
the
only
burden
is
to
enter
the
appropriate
code
describing
the
registrant's
additive
into
software
and
generate
it
on
PTDs.

36
Refiners'
and
importers'

creation
of
new
product
codes
or
phrases
for
Product
Transfer
Documents6
15
15/
225
20/
4,500
292,500
Diesel
additive
manufacturers'

creation
of
new
product
codes
or
phrases
for
Product
Transfer
Documents7
15
1/
15
20/
300
19,500
September
10,
2004
(
10:
41AM)

Collection
Activity
Number
of
Respondents
Reports
per
Respondent/
Total
Hours
per
Report/
Total
Labor
Costs
in
$
Non­
postage
Other
Costs
in
$

8
Only
for
foreign
refiners
who
use
the
temporary
compliance
or
other
flexibility
option
(
e.
g.
small
refiner).

9
Capital/
start
up
costs
were
incurred
by
regulated
industry
in
1993.
The
notice
or
codes
are
typically
is
now
automatically
generated
by
software
and
represents
a
minimal
burden.
This
item
is
the
only
reporting
burden
under
existing
ICR
1718.03,
expiring
9/
1/
04.
37
Voluntary
QA
by
refiners
and
importers
200
100/
20,000
1/
20,000
1,300,000
4,800,000
(
24,000
per
respondent,
1/
2
assumed
to
be
O
&
M
and
1/
2
assumed
to
be
capital
cost)

Attest
engagements
for
foreign
refiners8
5
1/
5
40/
200
13,000
50,000
Purchased
Services
(
PS)

(
10,000
per
respondent
per
year)

Placement
of
notice
or
codes
for
dyed
diesel
fuel9
2,000
200/
400,000
.0333/
222
14,430
September
10,
2004
(
10:
41AM)

10
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.

38
Table
I
TOTALS:
2,675
respondents
420,685
reports
39,575
burden
hours
$
2,572,375
labor
costs
$
4,850,000
O&
M,
capital
costs,
and
purchased
services
costs
Table
II
­
Initial
Burden
Table
by
Collection
Activity
for
Non­
Road,
Locomotive,
and
Marine
Diesel
(
Period:
Applicable
from
Present
[
September
2004]
through
June
2007)

Collection
Activity
#
of
Respondents
#
of
Reports
per
Respondent
Total
#
of
Reports
Hours
per
Report
Total
Hours
Total
Labor
Cost.
in
$

Refiner
and
Importer
Registration10
20
1
20
1
20
$
1,300
Pipeline
and
Terminal
Operators'
Registration
1,000
1
1,000
1
1,000
$
65,000
Application
for
Small
Refiner
Status
25
1
25
20
500
$
32,500
September
10,
2004
(
10:
41AM)

Collection
Activity
#
of
Respondents
#
of
Reports
per
Respondent
Total
#
of
Reports
Hours
per
Report
Total
Hours
Total
Labor
Cost.
in
$

39
Temporary
Hardship
Relief
Application
5
1
5
20
100
$
6,500
Refiners
and
Importers
database
and
software
programming
needs
for
diesel
reporting
and
credit
tracking
150
1
150
150
22,500
$
1,462,500
Pipeline
and
Terminal
Operators
database
and
software
needs
for
diesel
reporting
and
credit
tracking
1,000
1
1,000
50
50,000
$
3,250,000
Refiners'
and
Importers'

Creation
of
new
product
codes
for
Product
Transfer
Documents
150
1
150
15
2,250
$
146,250
Total
2,350
2,350
76,370
$
4,964,050
September
10,
2004
(
10:
41AM)

40
Table
III
­
Annual
Burden
Table
by
Collection
Activity
­
Non­
Road,
Locomotive,
and
Marine
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
5,200
R&
D
Exemption
Application
8
1
8
1
8
520
Refiners'
and
Importers
Precompliance
Reports
150
1
150
20
3,000
195,000
Refiners
and
Importers
Annual
Reports
150
1
150
40
6,000
390,000
Refiners
and
Importers
Quarterly
Reports
150
4
600
20
12,000
780,000
Pipeline
and
Terminal
Operators'
Annual
Reports
1,000
1
1,000
40
40,000
2,600,000
Pipeline
and
Terminal
Operators
Quarterly
Reports
1,000
4
4,000
30
120,000
7,800,000
Q&
A
by
Refiners
and
Importers
150
100
15,000
1
15,000
975,000
Attest
engagement
for
foreign
refiners
5
1
5
40
200
13,000
Total
2,615
20,915
196,288
12,758,720
TOTAL
O&
M
and
CAPITAL
COSTS
=
3,600,000
(
1/
2
O&
M
and
1/
2
CAPITAL)
and
TOTAL
PURCHASED
SERVICES
=
$
50,000.
September
10,
2004
(
10:
41AM)

41
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page
intentionally
left
blank.
September
10,
2004
(
10:
41AM)

11
See
fn.
1.
42
Table
IV
­
Annual
Burden
Table
by
Collection
Activity
for
Non­
Road,
Locomotive
and
Marine
Period:
June
2010
and
beyond11
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
5,200
R&
D
Exemption
Application
8
1
8
1
8
520
Refiners
and
Importers
Annual
Reports
150
1
150
40
6,000
390,000
Pipeline
and
Terminal
Operators'
Annual
Reports
100
1
100
40
4,000
260,000
Q&
A
by
Refiners
and
Importers
150
100
15,000
1
15,000
975,500
Attest
engagement
for
foreign
refiners
5
1
5
40
200
13,000
Total
415
15,265
25,288
$
1,643,720
TOTAL
O&
M
and
CAPITAL
COSTS
=
3,600,000
(
1/
2
O&
M
and
1/
2
CAPITAL)
and
TOTAL
PURCHASED
SERVICES
=
$
50,000.
September
10,
2004
(
10:
41AM)

43
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page
intentionally
left
blank.
September
10,
2004
(
10:
41AM)

44
TOTALS:

TOTAL
NO.
OF
REPORTS:
444,110
TOTAL
BURDEN
HOURS:
312,233
TOTAL
LABOR
COSTS:
$
20,295,145
TOTAL
O&
M
AND
CAPITAL
COSTS:
$
8,400,000
TOTAL
PURCHASED
SERVICES
COSTS:
$
100,000
TOTAL
OF
ALL
COSTS
=
$
28,795,145
September
10,
2004
(
10:
41AM)

45
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
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
burden
under
1718.04
(
related
to
diesel
fuel
quality
in
2001
and
later
years)
has
been
reduced
since
some
types
of
reporting
(
e.
g.,
application
for
small
refiner
status)
were
one
time
reporting
burdens
for
which
the
deadline
has
passed
and
with
which
parties
have
already
complied.
However,
this
supporting
statement
renews
both
1718.03
(
related
to
the
dye
requirement)
and
1718.04,
and
includes
provisions
of
proposed
1718.07
(
related
to
nonroad,
locomotive
and
marine
diesel)
that
are
applicable
through
2007.
The
recordkeeping
and
reporting
provisions
under
1718.07
were
added
as
part
of
the
recent
final
rule.
(
See
1(
b)
for
more
details.)

6(
g)
Burden
Statement
There
are
only
two
printed
forms
that
exist
for
this
program.
These
are
the
same
as
the
company
and
facility
registration
forms
currently
used
for
the
RFG
and
anti­
dumping
September
10,
2004
(
10:
41AM)

46
program
(
OMB
Control
Number
2060­
0277.)
We
anticipate
that
most
parties
will
choose
to
use
simplified
electronic
reporting
procedures
­
however,
additional
forms
consistent
with
the
requirements
laid
out
in
this
ICR
may
be
developed
to
suit
reporting
parties'
needs.
The
burden
statement
for
fuels
reporting
forms
is
proposed
to
continue
to
read
as
follows:

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.

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,
OPPE
Regulatory
Information
Division,
U.
S.
Environmental
Protection
Agency
(
2137)
1200
Pennsylvania
Avenue,
N.
W.,
Washington,
DC;
and
to
the
Office
of
Information
and
Regulatory
Affairs,
Office
of
Management
of
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.
September
10,
2004
(
10:
41AM)

47
Part
B
of
the
Supporting
Statement
­
Not
Applicable.
