1
INFORMATION
COLLECTION
REQUEST
(
ICR)
United
States
Environmental
Protection
Agency
(
EPA)
Part
A
of
the
Supporting
Statement
(
DRAFT
­
July
2004
)

1.
IDENTIFICATION
OF
THE
INFORMATION
COLLECTION
1(
a)
Title:
Regulation
of
Fuels
and
Fuel
Additives:
Gasoline
Volatility;
Reporting
Requirements
for
Parties
Which
Produce
or
Import
Gasoline
Containing
Ethanol,
and
Reporting
Requirements
for
Parties
Seeking
a
Testing
Exemption
(
40
CFR
80.27)
EPA
ICR
Number
1367.07,
OMB
Control
Number
2060­
0178
1(
b)
Abstract
Gasoline
volatility,
as
measured
by
Reid
Vapor
Pressure
(
RVP)
in
pounds
per
square
inch
(
psi),
is
controlled
in
the
spring
and
summer
in
order
to
minimize
evaporative
hydrocarbon
emissions
from
motor
vehicles.
The
standards,
7.8
psi
or
9.0
psi,
for
each
state
and
the
District
of
Columbia,
are
at
40
CFR
80.27
(
a).
The
addition
of
ethanol
to
gasoline
increases
the
RVP
by
about
one
psi.
Gasoline
that
contains
at
least
nine
volume
percent
ethanol
is
subject
to
a
standard
that
is
1.0
psi
greater.
As
an
aid
to
compliance
and
enforcement,
the
regulation
at
40
CFR
80.27
(
d)(
3)
requires
that
the
product
transfer
document
(
PTD)
which
accompanies
a
shipment
of
gasoline
containing
ethanol
shall
contain
a
legible
and
conspicuous
statement
that
the
gasoline
contains
ethanol
and
the
percentage
concentration
of
ethanol.
This
is
intended
to
deter
the
mixing
within
the
distribution
system,
particularly
in
retail
storage
tanks,
of
gasoline
which
contains
ethanol
with
gasoline
that
does
not
contain
ethanol.
Such
mixing
would
likely
result
in
a
gasoline
with
an
ethanol
concentration
of
less
than
nine
volume
percent,
but
with
an
RVP
above
the
standard.
It
is
estimated
that
there
are
approximately
1,500
producers
and
importers
(
mostly
blenders
as
opposed
to
refiners
and
importers)
of
gasoline
blended
with
ethanol.
There
are
approximately
10,000
shippers/
distributors/
transferors,
mostly
truckers,
of
gasoline
containing
ethanol.
It
is
estimated
that
each
transferor
handles
about
300
shipments
annually.
Parties
wishing
to
conduct
research
or
emissions
certification
on
gasoline
that
does
not
meet
the
volatility
standard
are
required
to
obtain
a
testing
exemption
in
accordance
with
40
CFR
80.27(
e).
The
EPA
receives
approximately
two
requests
per
year
for
testing
exemptions.

2.
NEED
FOR
AND
USE
OF
THE
COLLECTION
2(
a)
Need/
Authority
for
the
Collection
Section
211(
h)
of
the
Clean
Air
Act
(
Act)
requires
EPA
to
promulgate
regulations
prohibiting
the
sale
or
distribution
of
gasoline
whose
volatility,
as
measured
by
RVP,
exceeds
certain
standards
during
the
high
ozone
season.
The
Act
and
regulations
at
40
C.
F.
R.
80.27
and
80.28
permit
gasoline
containing
nine
percent
ethanol
to
have
an
RVP
that
is
one
psi
greater
than
2
the
standard
that
would
otherwise
apply.
Normally,
the
gasoline
distribution
system
treats
gasoline
as
a
fungible
product.
That
is,
gasolines
from
numerous
sources
are
mixed
together
(
also
known
as
commingling)
in
tanks
at
terminals
and
retail
outlets.
Therefore,
without
the
required
statement
on
the
PTD,
gasoline
containing
ethanol
could
easily
be
commingled
with
gasoline
not
containing
ethanol.
This
could
result
in
gasoline
containing
enough
ethanol
to
cause
a
violation
the
RVP
standard,
but
not
at
least
nine
percent
ethanol
to
qualify
for
the
one
psi
exemption
allowed
by
the
Act
and
regulations.
Thus,
it
is
imperative
that
gasoline
marketers,
shippers,
and
distributors
know
if
a
shipment
of
gasoline
contains
ethanol,
and
in
what
concentration.
The
required
statement
on
the
PTD
of
gasoline
blended
with
ethanol
will
significantly
aid
industry
compliance
and
EPA's
ability
to
enforce
the
volatility
standards.

Thus
the
rule
requires
that
the
customary
business
practice
(
CBP)
PTD
for
a
shipment
of
gasoline
containing
ethanol
state
that
the
gasoline
contains
ethanol
and
the
percentage
concentration
of
ethanol.
The
rule
does
not
have
a
recordkeeping
requirement.
However,
PTDs
are
usually
retained
in
the
normal
course
of
business
for
five
years.

As
required
by
section
211(
h)
of
the
Act,
the
Agency
promulgated
a
final
rule
in
1991.
The
reporting
requirement
in
40
C.
F.
R.
80.27(
d)(
3)
was
promulgated
under
authority
of
section
211(
h)
of
the
Act,
42
U.
S.
C.
§
7545(
h)
and
sections
114
and
208
of
the
Act,
42
U.
S.
C.
§
§
7414
and
7542,
and
provides:

"
Each
invoice,
loading
ticket,
bill
of
lading,
delivery
ticket
and
other
document
which
accompanies
the
shipment
of
gasoline
containing
ethanol
shall
contain
a
legible
and
conspicuous
statement
that
the
gasoline
being
shipped
contains
ethanol
and
the
percentage
concentration
of
ethanol."

These
regulations
provide
for
the
enforcement
of
the
standards
for
the
maximum
RVP
that
will
be
allowed
during
the
high
ozone
portion
of
the
year,
extending
from
May
1
(
suppliers)
or
June
1
(
all
other
persons)
through
September
15.
Regulatory
control
of
volatility
stems
from
a
recognition
of
the
major
impact
that
increases
in
the
RVP
of
gasoline
have
on
the
emissions
of
volatile
organic
compounds
(
VOCs).
Consequent
to
the
excessive
emission
of
VOCs
is
the
formation
of
ozone
in
the
ambient
air,
a
major
summertime
health
problem
in
many
urban
areas.

The
reporting
(
actually
labeling)
requirement
is
necessary
because
the
Act
gave
ethanol
blends
a
one
pound
per
square
inch
(
psi)
allowance
above
the
otherwise
applicable
RVP
standard.
The
records
regarding
the
shipment
of
ethanol
blends
to
a
retailer
or
to
any
"
midstream"
distribution
point
will
assist
Agency
enforcement
officials,
when
inspecting
those
shipments,
in
identifying
those
gasoline
blends
that
qualify
for
the
one
psi
allowance
and
those
parties
who
may
be
liable
for
violations
if
the
blend
does
not
qualify
for
the
allowance.
The
records
are
also
necessary
to
assist
regulated
parties
in
avoiding
violations
(
for
example,
mixing
loads
of
gasoline
with
ten
percent
ethanol
and
loads
without
ethanol
during
the
high
ozone
season
can
result
in
violations),
and
can
be
used
by
parties
in
establishing
a
legal
defense.
3
Parties
wishing
to
conduct
research
or
emissions
certification
on
gasoline
that
does
not
meet
the
volatility
standard
may
obtain
a
testing
exemption
by
providing
the
information
specified
at
40
CFR
80.27(
e)
to
EPA.
Thus,
if
a
test
facility
were
inspected
by
EPA,
and
gasoline
was
found
that
did
not
meet
the
standard,
and
the
facility
had
an
exemption,
there
would
not
be
a
violation.

2(
b)
Practical
Utility/
Users
of
the
Data
The
collection
of
information
is
necessary
for
the
proper
performance
of
the
functions
of
the
Agency
and
has
practical
utility.
The
information
contained
in
the
PTDs
for
gasoline
blended
with
ethanol
is
used
to
identify
those
gasoline
blends
that
may
qualify
for
the
one
psi
allowance,
as
provided
by
the
Act
and
by
the
rule.
The
required
record
also
helps
prevent
the
commingling
of
gasoline
containing
the
required
amount
of
ethanol
necessary
to
be
eligible
for
the
one
psi
waiver
with
gasoline
not
containing
ethanol.
Such
commingling
would
usually
result
in
a
violation.
The
testing
exemption
provides
flexibility
for
research
or
emissions
certification.

The
Agency
enforcement
officers
need
this
information
to
identify
violations
and
to
identify
violating
parties.
There
is
no
recordkeeping
requirement
under
this
rule.
Industry
entities,
including
blenders
of
ethanol
and
gasoline,
and
distributors
of
gasoline
containing
ethanol,
as
well
as
retailers
(
who
ultimately
receive
the
gasoline
but
have
no
recordkeeping
requirements
under
the
rule)
need
the
information
in
order
to
prevent
violations
that
can
occur
from
commingling
ethanol
blends
and
non­
ethanol
blends
during
the
high
ozone
season.

3.
NONDUPLICATION,
CONSULTATIONS,
AND
OTHER
COLLECTION
CRITERIA
3(
a)
Nonduplication
The
information
collection
is
not
duplicative.
The
PTDs
are
the
only
records
available
to
recipients
of
gasoline
that
document
that
ethanol
has
been
blended
into
the
gasoline.
The
reporting
requirement
for
a
testing
exemption
is
the
only
practical
approach.

3(
b)
Public
Notice
Required
Prior
to
ICR
Submission
to
OMB
In
compliance
with
the
Paperwork
Reduction
Act,
a
public
comment
period
of
60
days
was
announced
in
the
Federal
Register.

3(
c)
Consultations
The
general
consensus
is
that
the
burden
is
very
small.
The
information
is
generally
computer­
generated,
pre­
printed,
or
hand
stamped
on
the
PTDs.
The
rule
does
not
require
that
the
PTDs
be
retained.
Only
about
two
requests
for
testing
exemptions
are
received
annually.

3(
d)
Effects
of
Less
Frequent
Collection
4
This
labeling
activity
is
the
minimum
necessary
to
alert
downstream
distributors/
marketers
that
a
shipment
of
gasoline
contains
ethanol.
The
labeling
requirement
applies
only
to
those
facilities
producing,
importing,
or
distributing
gasoline
blended
with
ethanol.
The
Agency
allows
maximum
flexibility
in
the
form
of
the
labeling.
Neither
record
maintenance
nor
reporting
to
the
Agency
is
required.
No
new
documents
are
required,
since
PTDs
are
routinely
used
in
the
gasoline
distribution
network.
Testing
exemptions
are
requested
only
as
necessary.

3(
e)
General
Guidelines
The
collection
is
in
compliance
with
OMB
guidelines.
To
the
extent
that
some
affected
companies
may
be
relatively
small
businesses,
their
informational
requirements
do
not
change
since
the
requirement
is
already
the
minimal
possible
in
order
to
give
other
businesses
and
EPA
information
that
is
necessary
for
compliance.

3(
f)
Confidentiality
Information
claimed
as
confidential
is
handled
in
accordance
with
EPA
Freedom
of
Information
Act
regulations
at
40
CFR
2.

3(
g)
Sensitive
Questions
There
are
no
sensitive
questions.

4.
THE
RESPONDENTS
AND
THE
INFORMATION
REQUESTED
4(
a)
Respondents/
SIC/
NAICS
Codes
The
respondents
are
related
to
the
following
major
group
Standard
Industrialization
Classification
(
SIC)
codes:

2869
­
Denatured
Alcohol
Manufacturing
2911
­
Petroleum
Refineries
4212
­
Gasoline
Distributors
5171
­
Gasoline
Bulk
Stations
and
Terminals
5172
­
Gasoline
Merchant
Wholesalers
(
except
bulk
stations,
terminals)

5541
­
Retailers/
Wholesale
Purchaser­
consumers
The
respondents
are
related
to
the
following
major
group
NAICS
codes:
5
324110
­
Petroleum
Refineries
325193
­
Denatured
Alcohol
Manufacturing
424710
­
Gasoline
Bulk
Stations
and
Terminals
424720
­
Gasoline
Merchant
Wholesalers
(
except
bulk
stations,
terminals)

4(
b)
Information
Requested
(
i)
Data
Items,
Including
Recordkeeping
Requirements
This
ICR
covers
the
reporting/
labeling
requirement
at
40
CFR
80.27(
d)(
3)
for
the
PTDs
for
shipments
of
gasoline
containing
ethanol.
Ethanol
is
generally
splash­
blended
into
a
gasoline
tanker
truck
at
a
terminal
truck
rack
at
ten
volume
percent.
The
blender
creates
a
statement
on
the
PTD
that
the
product
contains
ten
percent
ethanol.
The
same
is
required
for
a
refiner
who
produces
gasoline
blended
with
ethanol
at
a
refinery
and
an
importer
of
gasoline
blended
with
ethanol.
Each
distributor/
transferor
transfers
this
PTD
on
to
the
next
transferor
and
ultimately
to
the
retail
level.
Many
refiners/
blenders/
importers
already
included
this
information
on
the
PTDs
prior
to
the
EPA
regulatory
requirement
(
also,
some
states
already
required
this
information),
and
for
them
this
requirement
represented
no
new
burden.
Even
where
it
did
represent
a
new
burden,
the
information
is
now
encoded
automatically
by
computer
or
otherwise
routinely
stamped
or
entered
on
the
PTD,
resulting
in
an
extremely
small
reporting
burden.
There
is
no
burden
for
transferors,
as
they
already
had
to
transfer
a
PTD
with
each
shipment
of
gasoline
as
a
customary
business
practice
(
CBP).
This
rule
has
no
recordkeeping
requirement.
Parties
needing
a
testing
exemption
must
submit
the
information
specified
at
40
CFR
80.27(
e).

(
ii)
Respondent
Activities
The
following
are
required:

Read
and
comprehend
the
regulations.

Train
personnel
to
meet
the
requirements.

Develop
the
information
for
the
PTD
and/
or
testing
exemption.

Gather
and
organize
the
information.

Review
the
information,
perform
quality
assurance,
and
take
corrective
action,
if
necessary,
to
meet
the
regulatory
requirements.
6
Enter
the
information
onto
the
PTD
or
submit
the
request
for
a
testing
exemption
to
EPA.

5.
THE
INFORMATION
COLLECTED­­
AGENCY
ACTIVITIES,
COLLECTION
METHODOLOGY
AND
INFORMATION
MANAGEMENT
5(
a)
Agency
Activities
The
following
are
required:

Develop
a
thorough
understanding
of
the
regulatory
requirements.

Convey
the
requirements
and
respond
to
inquiries
in
a
clear
manner.

Provide
access
to
the
regulations
and
guidance
documents.

Timely
process
requests
for
testing
exemptions.

Monitor
compliance
with
the
PTD
requirement.

5(
b)
Collection
Methodology
and
Management
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.
Ethanol
blender/
distributors
generally
use
computer­
printed
language
stating
that
the
product
contains
ten
percent
ethanol.
This
information
is
printed
on
PTDs,
and
in
many
cases
the
information
itself
was
already
printed
prior
to
the
rule.
EPA
also
allows
the
use
of
coded
statements
to
reduce
the
space
the
statement
requires
on
the
PTD.
EPA
may
examine
these
records
during
investigations
regarding
gasoline
exceeding
the
applicable
RVP
standard.
Requests
for
a
testing
exemption
are
routinely
reviewed
and
granted
by
EPA.

5(
c)
Small
Entity
Flexibility
The
information
collection
reduces
to
the
extent
practicable
and
appropriate
the
burden
on
persons
who
shall
provide
information
to
or
for
the
Agency,
including
with
respect
to
small
entities,
as
defined
by
the
Regulatory
Flexibility
Act
(
5
U.
S.
C.
§
601(
6)),
the
use
of
such
techniques
as:
(
1)
establishing
differing
compliance
or
reporting
requirements
or
timetables
that
take
into
account
the
resources
available
to
those
who
are
to
respond;
(
2)
the
clarification,
consolidation,
or
simplification
of
compliance
and
reporting
requirements;
or
(
3)
an
exemption
from
coverage
of
the
collection
of
information,
or
any
part
thereof.
7
The
approach
of
this
information
collection
holds
burdens
to
the
irreducible
minimum
consistent
with
obtaining
the
required
compliance
levels.
The
labeling
requirement
applies
only
to
those
entities
that
produce
or
distribute
ethanol
blends.
It
enables
those
parties,
as
well
as
retail
level
entities,
to
comply
with
the
law.
However,
retail
entities
have
no
requirement
to
make
or
maintain
records.
Therefore,
the
smallest
entities
have
no
burden
under
this
collection
and
for
those
small
distributors
who
do
have
a
burden,
the
burden
is
minimal.
The
information
required
is
not
in
any
prescribed
format,
allowing
for
maximum
flexibility
in
how
to
print
the
information,
including
the
use
of
short
codes,
and
does
not
necessitate
any
new
records.
Therefore,
no
further
flexibility
is
needed.

5(
d)
Collection
Schedule
There
is
no
reporting
requirement
and
there
is
no
required
maintenance
period.
There
is
no
collection
schedule;
the
statement
is
added
to
CBP
transfer
documents
as
each
transaction
takes
place.

6.
ESTIMATING
THE
BURDEN
AND
COST
OF
THE
COLLECTION
It
is
estimated
that
there
are
1,500
producers
and
importers
of
gasoline
blended
with
ethanol.
The
vast
majority
is
blended
at
terminals.
Little
ethanol
is
blended
at
a
refinery
or
contained
in
imported
gasoline
Based
on
information
received
from
respondents
and
from
EPA
experience,
for
most
respondents
the
required
information
is
automatically
computer­
generated
or
preprinted
on
the
PTDs.
This
means
the
reporting
requirement
is
almost
unmeasurable
for
these
parties.
Other
parties
may
spend
about
ten
seconds
per
transaction
to
stamp
or
otherwise
enter
the
information
on
the
PTDs.
The
average
for
all
respondents
is
estimated
to
be
about
five
seconds
per
transaction.
There
is
no
recordkeeping
requirement.
It
is
estimated
to
take
four
hours
to
prepare
a
request
for
a
testing
exemption.

Based
on
data
from
the
U.
S.
Department
of
Labor,
Bureau
of
Labor
Statistics,
(
2003
data),
EPA
estimates
that
the
hourly
cost,
including
benefits
and
other
employee
costs,
for
this
industry
and
for
the
period
of
this
ICR,
to
be
about
$
65
per
hour
for
typical
labor
mix.

Almost
all
gasoline
containing
ethanol
will
be
shipped
by
truck.
Assume
30
percent
of
all
gasoline
contains
ethanol.
If
30
percent
of
the
130
billion
gallons
of
gasoline
that
is
consumed
annually
nationwide
contains
ethanol,
this
comes
to
39
billion
gallons
of
gasoline.
If
each
truck
carries
8,500
gallons
of
gasoline,
then
about
4,600,000
truckloads/
shipments
of
gasoline
with
ethanol
are
produced/
imported
annually.
Thus
4,600,000
PTDs
will
receive
the
required
statement
on
ethanol
content
annually.
8
6(
a)
Estimating
Respondent
Burden
For
4,600,000
PTDs
(
responses),
at
and
average
burden
of
5
seconds
per
PTD,
the
annual
burden
is
6,389
hours,
or
about
four
hours
for
each
of
the
estimated
1,500
producers
and
importers.
For
two
requests
for
testing
exemptions,
at
four
hours
each,
adds
eight
hours
annually,
for
an
annual
total
of
4,600,002
responses
and
6,397
hours.
There
is
no
burden
for
the
estimated
10,000
transferors
because
the
transmittal
of
PTDs
is
a
customary
business
practice.

6(
b)
Estimating
Respondent
Costs
For
producers
and
importers
of
gasoline
containing
ethanol,
6,389
hours
at
$
65
per
hour
gives
a
total
of
$
415,285,
or
about
$
277
per
respondent
(
1,500
respondents)
annually
to
generate
the
required
statement
on
PTDs.
For
parties
wishing
a
testing
exemption,
eight
hours
at
$
65
per
hour
gives
a
total
of
$
520,
or
$
260
per
respondent.
There
are
no
costs
for
the
10,000
transferors.

There
are
no
Purchased
Services
Costs.
Annualized
Startup
Costs
are
estimated
at
$
3,250,
based
on
50
new
producers
or
importers
annually
and
one
hour
of
labor
each
(
50
x
$
65
per
hour
=
$
3,250)
to
implement
the
requirement.
There
are
no
Annualized
Capital
Costs.
Operating
and
maintenance
(
O&
M)
costs
are
for
copying
and
postage
for
the
two
exemption
requests
annually,
and
are
estimated
at
$
10
each
for
a
total
of
$
20.

6(
c)
Estimating
EPA
Burden
and
Cost
The
labeling
activity
that
is
the
subject
of
this
ICR
imposes
no
burden
or
costs
on
the
Agency.
The
Agency
would
conduct
inspections
even
without
the
requirement
but
the
required
information
facilitates
the
investigation
of
possible
violations.

6(
d)
Reasons
for
Change
of
Burden
The
use
of
ethanol
in
gasoline
has
increased
by
about
50%
since
the
previous
ICR.
Thus,
the
annual
number
of
respondents
is
estimated
to
have
increased
from
1,000
in
the
previous
ICR
to
1,500,
and
the
annual
number
of
PTDs
that
will
contain
the
required
language
has
increased
from
3,000,000
in
the
previous
ICR
to
4,600,000.

6(
e)
Burden
Statement
There
are
no
EPA
forms
on
which
to
place
a
statement.

B.
COLLECTION
OF
INFORMATION
EMPLOYING
STATISTICAL
METHODS
This
section
is
not
applicable
because
statistical
methods
are
not
used
in
the
data
collection
associated
with
the
Gasoline
Volatility
Rule.
9
July
13,
2004
(
4:
08pm)

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