INFORMATION COLLECTION REQUEST (ICR)

OMB-83 SUPPORTING STATEMENT

ENVIRONMENTAL PROTECTION AGENCY

OFFICE OF AIR & RADIATION

March 21, 2013

A.	JUSTIFICATION

1.	Identification of the Information Collection

	1(a)	Title:  Reformulated Gasoline Commingling Provisions

		EPA Number:  2228.04

	1(b)	Short characterization:

	With this information collection request (ICR), the Office of Air and
Radiation (OAR) is seeking permission to accept notifications from
gasoline retailers and wholesale purchaser-consumers related to
commingling of ethanol blended and non-ethanol-blended reformulated
gasoline (RFG) under §1513 of the Energy Policy Act of 2005 (EPAct) and
40 CFR § 80.78(a)(8)(ii)(B); and to provide for a compliance option
whereby a retailer or wholesale purchaser-consumer may demonstrate
compliance via test results under 

§ 80.78(a)(8)(iii)(A). These provisions are designed to grant
compliance flexibility.  Parties were first subject to this
recordkeeping and reporting on June 1, 2006.  We are requesting that the
Office of Management and Budget (OMB) approve the renewal of this ICR
and that it remain in effect 3 years from the approval date. 

	Section 1513 of the EPAct addresses the combining of ethanol-blended
RFG with non-ethanol-blended RFG.  This provision amended the Clean Air
Act (CAA) to add a new § 211(s) providing retail outlets two ten-day
opportunities during a single VOC-control season to blend batches of
ethanol-blended and non-ethanol- blended RFG.  Under this new section,
retail outlets are allowed to sell non-ethanol-blended RFG which has
been combined with ethanol blended RFG under certain conditions:

First, each batch of gasoline to be blended must have been
“individually certified as in compliance with subsections (h) and (k)
[of CAA § 211] prior to being blended.”

Second, the retailer must notify EPA prior to combining the gasolines
and identify the exact location of the retail outlet and specific tank
in which the gasoline is to be combined.

Third, the retailer must retain, and, upon request by EPA, make
available for inspection, certifications accounting for all gasoline at
the retail outlet.  (This information is normally kept in the normal
course of business and we believe retaining it is a customary business
practice (CBP).) 

Fourth, retailers are prohibited from combining VOC-controlled gasoline
with non-VOC-controlled gasoline between June 1 and September 15.  

	  SEQ CHAPTER \h \r 1 To provide assurance that gasoline is in
compliance with the downstream VOC standard after the ten-day period,
EPA issued a direct final rule that amended 40 CFR Part 80 to address
commingling (71 FR 8973, February 22, 2006).  There are two options
available for retailers and wholesale purchaser-consumers.  Under the
first option, the retailer may add both ethanol-blended RFG and
non-ethanol-blended RFG to the same tank an unlimited number of times
during the ten-day period, but must test the gasoline in the tank at the
end of the ten-day period to make sure that the RFG is in compliance
with the VOC standard.  Under the second option, the retailer must draw
the tank down as much as practicable at the start of the ten-day period,
before RFG of another type is added to the tank, and add only RFG of one
type to the tank during the ten-day period.  Because there is a
recordkeeping requirement associated with retail station test results
under the first option, we have also calculated an estimated burden for
that activity.  We believe 5% or fewer of respondents will elect the
testing option.

	Retailers are also limited in the frequency with which batches of
non-ethanol RFG may be combined with ethanol RFG.  Retailers may combine
such batches of RFG a maximum of two periods between May 1 and September
15. Each period may be no more than ten consecutive calendar days.    

	

2.  Need For, and Use of, the Collection

	 1(a)	Authority for the Collection

	  SEQ CHAPTER \h \r 1 Sections 114 and 208 of the CAA, 42 U.S.C. §§
7414 and 7542, authorize EPA to require recordkeeping and reporting
regarding enforcement of the provisions of Title II of the CAA.  The
relevant regulations are in 40 CFR Part 80, Regulation of Fuels and Fuel
Additives. See §§ 80.78(a)(8)(ii)(B) and (iii)(A).  

	

	2(b)	Practical Utility/Uses of the Data

	The recordkeeping and reporting requirements of this regulation will
allow EPA to monitor compliance with the commingling requirements of CAA
§ 211(s), as added by § 1513 of the EPAct.

3.  Non-duplication, Consultation, and other Collection Criteria

	3(a) 	Non-duplication

	  SEQ CHAPTER \h \r 1 Efforts have been made to eliminate duplication
in this information collection. Where possible, information requirements
from various organizations within the Agency have been combined to
minimize the submittal of duplicate information in different formats. 
The information in this collection will not be available from another
source.

	3(b)	Public Notice

	EPA will provide opportunity for notice and comment regarding this ICR.

	3(c) 	Consultations

	We have drawn upon our experience with similar fuels regulations and
have utilized information available from the 2007 Economic Census for
Retail Trade which stated there were 115,223 retail stations in 2007 to
develop these estimates.  The Economic Census is the official 5-year
measure of American business. We have also utilized information
available by the U.S. Census Bureau Fact Finder2 which supplied us with
the number of wholesale purchaser-consumer facilities in the U.S. New
results are not scheduled for release until December 2013.  The results
of the 2007 estimates are being used in this collection.

	3(d)	Effects of Less Frequent Data Collection

	We very likely have over-estimated the burden because we have used a
conservative approach that assumes all parties may respond twice
annually (i.e., we have assumed the maximum number of responses).  With
regard to the testing option and retention of those records, we
anticipate that 5% or fewer of respondents will be affected annually. 
Less frequent collection of data would make it impossible to carry out
the provisions of the CAA and EPAct.    

	3(e)	General Guidelines

	This rule does not exceed any of the OMB guidelines.

	

	3(f) 	Confidentiality

	We inform respondents that they may assert claims of business
confidentiality (CBI) for any or all of the information they submit. We
do not believe that most respondents would characterize the information
they submit to us under this information collection as CBI.  Because of
this, we are permitting reporting via e-mail.  However, any information
claimed as confidential will be treated in accordance with 40 CFR Part 2
and established Agency procedures.  Information that is received without
a claim of confidentiality may be made available to the public without
further notice to the submitter under 40 CFR § 2.203.

3(g)	Sensitive Information

	

	This information collection does not require submission of any
sensitive information.

4.	The Respondents and the Information Requested

	4(a)	Respondents with NAICS/SIC Codes

	  SEQ CHAPTER \h \r 1 The respondents to this information collection
are:

Retailers (including wholesale purchaser-consumers)

	Recordkeeping and reporting may be required by the following
industries, with 2002 NAICS Code indicated in parentheses:  

Gasoline stations (447)

Gasoline stations with convenience stores (447110)

Gasoline stations without convenience stores (447190)

	4(b)	Information Requested

		

		4(i)	Reporting:  Respondents who use the notification option will be
sending a very simple report that could take the form of a short e-mail
or similar communication.  No form is to be developed, although we may
consider developing a simple web based reporting interface for
submission of the information, if that option is desired by the
respondent community.  

		

		4(ii)	Recordkeeping:  Under the testing option, respondents must
retain underlying records related to results of any tests they perform
for five years. We anticipate that 5% or fewer respondents will choose
the testing option. The burden of retaining the testing results record
is small.  

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

	5(a)	Agency Activities

All notifications will be reviewed by EPA.  (Test results will be shown
to EPA field compliance and enforcement personnel upon request.)

Notifications will be stored by EPA.

	5(b)	Collection Methodology and Management

	Data will be collected by industry and reported to EPA in the form of a
simple e-mail that identifies the service station and its address and
identifies the tank where commingling will occur. As mentioned above, we
do not anticipate that this information will come in under a CBI claim;
however, that is a possibility and we will treat all such information in
accordance with 40 CFR Part 2 and established Agency procedures for
handling CBI.  Information claimed as CBI will be stored in
appropriately controlled areas.

	 5(c)	Small Entity Flexibility

	This collection will not adversely affect small entities. The whole
purpose of the commingling provision of the EPAct is to provide
flexibility.  The actual estimated annual burden for a typical
respondent who submits up to two notifications per year is $17.00 and
0.50 hours (30 minutes) annually. 

	5(d)	Collection Schedule

	We anticipate that notifications will be submitted no more than twice
per year.

6.	Estimating the Burden and Cost of Collection

	6(a)	Estimating the Respondent Burden

	We drew upon experience implementing similar regulations among the same
entities to develop estimates of the burden associated with this
collection.  We consulted the 2008 Economic Census for Retail Trade to
assist us in estimating the total number of retail stations.  Since the
Economic Census for Retail Trade provided a nationwide estimate of
115,223, we assumed 30% of that number for stations in RFG areas (since
30% of the gasoline market nationwide is RFG). The number used for
stations in the RFG area will be 34,566.9 rounded up for ease of use
(35,000). Although imperfect, we believe this is a reasonable estimate,
and have applied similar logic in estimating the number of wholesale
purchaser-consumers. The 2007 Census Bureau Fact Finder2 reported that
there are 20,202 wholesale purchaser-consumer facilities handling
petroleum product.  For purposes of this ICR, we are multiplying this
number by 0.30 to yield 6060.9 facilities. Adding our estimate of the
number of retailers (35,000) and the number of wholesale
purchaser-consumers 6060.9 rounded to (6,000) for ease of use gives us a
collection of 41,000 respondents.  We believe this number to be on the
high side in estimating actual respondents, but it does provide a
reasonable benchmark.         

	6(b) 	Estimating the Respondent Burden and Cost

	We used the Bureau of Labor Statistics (BLS), May 2011 National
Industry-Specific Occupational Employment and Wage Estimates applicable
to “NAICS 44710 – Gasoline Stations,” as the basis for our
estimates.  We used the mean hourly salary for a first-line
supervisor/manager of retail sales workers ($16.53), rounded this up to
the next whole dollar amount ($17.00), and doubled for company overhead
beyond wages and benefits.  This yields an estimated hourly cost of
$34.00.  There is no capitol and maintenance cost associated with this
collection.



Table 1.  Respondent Burden Hours & Costs (Including Capital &
Maintenance - O&M)

Collection Activity	Number of

Respondents	Number of

Responses

per

Respondent	Total Number of Responses	Hours per Response

& Cost per

Response	Total Hours

&

Total Cost 

@ $17/hour	Total O&M

Prepare and Submit 

Notification	41,000	2	82000	0.25

-----

$4.25	20,500 hours

------

$348,500

 

	0

Maintain

Test

Results 

Documents

(assumes

5% of 

respondents test)	2,050	1	  2050	0.25

-----

$4.25	513 hours

------

$8712.50	0

Total	43,050 respondents	

-----------	84,050

responses	

-----------	21,013  hours

------

$357,221	0



 

  	6(c)	Estimating the Agency Burden and Cost

	No response is required to notifications unless a potential violation
is noted.  This activity will present no significant, quantifiable
burden to the Agency.  

	

	6(d)	Estimating the Respondent Universe

	We were able to estimate the number of regulated entities drawing upon
experience regulating the same entities and through the use of business
and industry economic statistics. We consulted the 2008 Economic Census
for Retail Trade to assist us in estimating the total number of retail
stations and the 2008 Census Bureau Fact Finder2 to assist in estimating
the number of wholesale purchaser-consumer facilities handling petroleum
product.

	6(e)	Bottom Line Burden Hours and Costs

	From Table 1 we estimate the following:

TOTAL NO. OF REPORTS:    84,050

TOTAL BURDEN HOURS:     21,013

TOTAL COST:  		$357,221

	6(f)	Reason for Change in Burden

	The change in burden from the prior ICR is due in part to better
numbers extracted from business and industry economic statistics that
assisted in calculating the numbers of respondents. These better numbers
reduced the party size by 13,650 members. The number of responses also
declined from 110,700 to 84,050 a difference of 26,650 reports which
reduced the industry burden hours from 27,675 to 21,013.  We also found
that the original cost per response was overstated by a factor of 2.
With the decline of respondents, burden hours and responses, and revisit
cost per response, the cost to renew this ICR is $357,221 a difference
of $528,379 calculated from the prior collection approved by OMB. 

	6(g)	Burden Statement

	The average respondent burden in hours per response for this ICR is
estimated at 0.25 hours (15 minutes).   The average annual respondent
burden in hours for this ICR is estimated at 0.50 hours (30 minutes).

	Burden means the total time, effort, or financial resources expended by
persons to generate, maintain, retain, or disclose or provide
information to or for a Federal agency.  This includes the time needed
to review the instructions; develop, acquire, install, and utilize
technology and systems for the purpose of collecting, validating, and
verifying information, processing and maintaining information, and
disclosing and providing information; adjust the existing ways to comply
with any previously applicable instructions and requirements; train
personnel to be able to respond to a collection of information; search
data sources; complete and review the collection of information; and
transit or otherwise disclose the information.  

	

	An Agency may not conduct or sponsor, and a person is not required to
respond to a collection of information unless it displays a currently
valid OMB control number.  The OMB control numbers for EPA's regulations
are listed in 40 CFR Part 9 and 48 CFR Chapter 15.

	  SEQ CHAPTER \h \r 1 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. Be sure to include the EPA ICR number (2228.04) in correspondence.

 2007 Economic Census for retail trade at   HYPERLINK
"http://www.census.gov/econ/industry/current/c4471.htm" 
http://www.census.gov/econ/industry/current/c4471.htm 

 2007 U.S. Economic Census Bureau Fact Finder2   HYPERLINK
"http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview
.xhtml?pid=ECN_2007_US_00A1&prodType=table" 
http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.
xhtml?pid=ECN_2007_US_00A1&prodType=table 

3  “May 2011 National Industry-Specific Occupational Employment and
Wage Estimates:  NAICS 44710 – Gasoline Stations;” Bureau of Labor
Statistics (BLS), under section sales and related occupations at  
HYPERLINK "http://www.bls.gov/oes/2008/may/naics4_447100.htm" 
http://www.bls.gov/oes/2008/may/naics4_447100.htm , accessed March 13,
2013. 

 The average respondent burden per response is the total number of hours
divided by the total number of responses from Table 1, rounded up for
simplicity. 

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