Draft

Supporting Statement

for

Information Collection Request

Recordkeeping and Reporting Requirements 

Regarding the Sulfur Content of Motor Vehicle

 	Gasoline under the Tier 2 Rule

				    40 CFR Part 80, subpart H

 

EPA ICR 1907.05

March 2010

Compliance and Innovative Strategies Division

Office of Transportation and Air Quality

U.S. Environmental Protection Agency

1.	IDENTIFICATION OF THE INFORMATION COLLECTION

	1(a)	Title of the Information Collection

	Recordkeeping and Reporting Requirements Regarding the Sulfur Content
of Motor Vehicle Gasoline under the Tier 2 Rule; OMB Control Number:
2060-0437; EPA ICR 1907.05.

	1(b)	Short Characterization/Abstract

	  SEQ CHAPTER \h \r 1 The requirements covered under this Information
Collection Request (ICR) are included in the final Tier 2 rule,
published on the February 10, 2000 (65 FR 6698).  A minor additional ICR
requirement was added to the Tier 2 rule on June 12, 2002 (67 FR 40169).

	The scope of the recordkeeping and reporting requirements for each type
of party in the gasoline distribution system, and therefore the cost to
that party, reflects the party's opportunity to create, control or alter
the sulfur content of gasoline.  As a result, refiners and importers
have more significant requirements, which are necessary both for their
own tracking and that of downstream parties, and for EPA enforcement,
while parties downstream from the gasoline production or import point,
such as distributors and pipelines, have minimal burdens under the rule.
 Many of the reporting and recordkeeping requirements for refiners and
importers regarding the sulfur content of gasoline on which the Tier 2
sulfur program relies currently exist under EPA’s reformulated
gasoline (RFG) and conventional gasoline (CG) anti-dumping programs. 
The ICR for the RFG/CG programs covered the majority of the start-up
costs associated with the reporting of gasoline sulfur content. 
Consequently, much of the cost associated with the sulfur-control
requirements under the sulfur program has already been accounted for
under the ICR for the RFG/CG programs.

	The information under this ICR will be collected by EPA’s Compliance
and Innovative Strategies Division (CISD), 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 the gasoline sulfur
control requirements under the Tier 2 rule.  This oversight by EPA is
necessary to ensure attainment of the air quality goals of the Tier 2
program.   Proprietary information may be submitted by refiners and
importers for demonstrating compliance with the sulfur standards. 
Confidentiality is handled in accordance with EPA regulations at 40 CFR
Part 2. and established  Agency procedures. 

	In general terms, the recordkeeping and reporting requirements
regarding the sulfur content of gasoline under the gasoline sulfur
program consist of the following:

(1)  Sampling and Testing.

Refiners and importers.  Under the gasoline sulfur control program,
refiners and importers are required to test every batch of gasoline
produced or imported for its sulfur content.  Although every batch
sampling and testing is required under the RFG program for refiners and
importers of RFG, it is a new requirement for refiners and importers of
CG, who are allowed to collect samples from multiple batches and test
the composite sample under the RFG program.  Refiners and importers also
conduct quality assurance (QA) periodic sampling and testing for sulfur
for defense purposes under the gasoline sulfur program.  

Blenders of Butane and Other Blendstocks into Previously Certified
Gasoline.  Under certain circumstances, blenders who blend butane into
previously certified gasoline (PCG) are allowed to comply with the
gasoline sulfur standards based on data from the butane
producer/supplier as an alternative to testing every batch testing. 
Blenders who blend other blendstocks into PCG are allowed to calculate
the sulfur content of the blendstock by testing the PCG before blending
and the gasoline produced after blending, and subtracting the volume and
sulfur content of the PGC from the volume and sulfur content of the
finished blend.  

Terminals and Pipelines.  Terminals and pipelines must sample and test
gasoline designated as small refiner gasoline (SRGAS) (i.e., gasoline
subject to the less stringent standards that apply to small refiners)
for compliance with the applicable downstream small refiner standard
subsequent to the most recent receipt of gasoline.  Terminals and
pipelines also conduct periodic QA testing for sulfur.

Truck Importers.  Under certain circumstances, an importer that imports
gasoline by truck is allowed to comply with the sulfur standards based
on test records from the foreign terminal.  To use this option, the
truck importer must conduct quality assurance testing of the gasoline.

(2) Sample Retention.  The gasoline sulfur program requires refiners and
importers to retain sample portions from the most recent 20 samples
collected or for each sample collected during the most recent 21-day
period, whichever is greater, and annually certify that samples have
been collected under required procedures.  Independent sampling and
testing is required for RFG under the RFG rule, and refiners and
importers who meet the independent analysis requirements for RFG also
meet the sample retention requirements under the sulfur rule.  For CG,
this was a new requirement.  However, under the gasoline sulfur program,
refiners are allowed to conduct their own testing rather than having it
conducted at an independent laboratory. 

(3) Recordkeeping.  Under RFG program requirements, all parties in the
distribution system are required to keep product transfer documents
(PTDs) for RFG.  For CG, however, PTDs must be transferred to all
parties, but their retention is required only of refiners and importers
since no downstream requirements for CG exist under the RFG program. 
The gasoline sulfur program has downstream requirements regarding the
sulfur content of both RFG and CG.  Therefore, the sulfur program
requires that all parties keep PTDs for CG as well as RFG.  The record
retention time for most records is five years, which is the same as
under the RFG program.  The additional burden on downstream parties
under the gasoline sulfur rule is minimal because all downstream parties
already receive transfer documents as a customary business practice and
maintain them for 4 or 5 years under state tax laws.

(4) Reporting.  The gasoline sulfur program requires refiners and
importers to submit an annual sulfur report which demonstrates
compliance with the applicable sulfur standards and includes ABT credit
and/or allotment activity.1  Reports are entered into an EPA Office of
Air and Radiation, Office of Transportation and Air Quality computer
database.  Reporting entities currently have the option of electronic
data interchange with EPA.  EPA supplies paper forms to parties that
elect to use them instead of reporting electronically. 

(5) Attest Requirements.  The gasoline sulfur program requires an annual
review (called an attest engagement) of the company’s records which
form the basis for the annual sulfur compliance report.  Attest
engagements are required under the RFG program for both RFG and CG. 
There is a small incremental cost associated with including the
information required under the sulfur program in the attest engagements
for RFG and CG.

(6) ABT Credit Trading Provisions.  The gasoline sulfur program’s ABT
credit trading provisions reduce the overall cost of compliance by
providing refiners and importers flexibility in complying with the
gasoline sulfur standards.  Refiners and importers are required to
report annually regarding the generation, transfer, and use of credits. 

(7) Small refiners.  Most of this ICR’s requirements for small
entities are associated with alternate sulfur standards that are
designed to lessen the overall burden of compliance for these entities
during the phase-in of the program.  Eligible small refiners who
participate in the small refiner program are required to comply with the
recordkeeping and reporting requirements applicable to all refiners. 
Small refiners are required to identify their gasoline as SRGAS on PTDs.
 

(8) Refiners and importers of GPA gasoline.  The gasoline sulfur program
provides flexibility during the phase-in period of the program for
refiners and importers who supply gasoline to certain states and
counties in the western U.S., called the geographic phase-in area (GPA).
 These refiners and importers are required to comply with the reporting
and recordkeeping requirements applicable to all refiners and importers.
 These refiners and importers are required to demonstrate compliance
with the sulfur requirements separately for their GPA and non-GPA
gasoline and they are required to identify their gasoline as GPA
gasoline on PTDs.

2.	NEED FOR AND USE OF THE COLLECTION

	2(a)	Need/Authority For The Collection

	 The gasoline sulfur requirements were promulgated under the authority
granted by Section 211(c)(1) of the Clean Air Act (CAA).2   Under
Section 211(c)(1), EPA may adopt a fuel control if at least one of the
following two criteria is met: (1) the emission products of the fuel
cause or contribute to air pollution which may reasonably be anticipated
to endanger public health or welfare, or (2) the emission products of
the fuel will significantly impair emissions control systems in general
use or which would be in general use were the fuel control to be
adopted.  

	The gasoline sulfur program was promulgated based on both of these
criteria.  Under the first criterion, EPA believes that emissions
products of sulfur in gasoline used in Tier 1 and low emission vehicle
(LEV) technology vehicles contribute to ozone pollution, air toxics, and
PM.  Under the second criterion, EPA believes that sulfur in gasoline
that would be used in Tier 2 technology vehicles would significantly
impair the emissions control systems of such vehicles.  The Regulatory
Impact Analysis (RIA) submitted with the Tier 2 rulemaking includes a
more detailed discussion of EPA’s authority to set gasoline sulfur
standards, including a discussion of EPA’s conclusions related to the
factors that must be considered under Section 211(c).

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

	(1) Identify the sources of gasoline and gasoline blendstocks; and

	(2) Ensure that these sources comply with the standards and limitations
of the Tier 2 gasoline sulfur rule.

	An effective enforcement scheme is necessary to ensure that the
environmental goals of the proposed Tier 2 program are met, and that
those complying with the requirements in good faith are not
disadvantaged by non-complying parties.  The gasoline sulfur program
requirements create a significant economic incentive for noncompliance. 
Without the accompanying recordkeeping and reporting requirements,
Congressional intent to improve air quality through the Tier 2 program
would be thwarted because neither EPA nor industry would have sufficient
information to monitor compliance.  Non-complying fuel would likely be
introduced into commerce on a widespread basis but for requirements that
make it possible for EPA to cross-check records of various entities in
order to determine compliance.

	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.  Relevant portions
of the statutes referenced above can be found in the Attachment.  The
current regulations applicable to motor vehicle gasoline, including the
regulations associated with this information collection, can be found in
40 CFR Part 80, Regulation of Fuels and Fuel Additives.

	2(b)	Practical Utility/Users of the Data

	EPA will use the information and test results (e.g., sulfur content and
volume of each batch of gasoline) contained in the annual reports
required by this information collection to evaluate the compliance of
parties involved in the production and importation of gasoline with the
gasoline sulfur control requirements  These reports will also be used by
EPA to target compliance investigations.  PTDs maintained by parties in
the gasoline distribution system and records related to gasoline
blending will be used to evaluate the compliance of parties that
maintain the records, and to help evaluate upstream compliance.

3.	NONDUPLICATION, CONSULTATIONS, AND OTHER COLLECTION CRITERIA

	3(a)	Nonduplication

	Efforts have been made to eliminate duplication in this information
collection.  Provisions included in the gasoline sulfur rule allow
parties to consolidate reporting requirements and/or provide abbreviated
reports where appropriate.  For example, to reduce the reporting burden,
reports specific to compliance with the sulfur standards and reports
related to the sulfur ABT credit trading program are included in the
annual reports already required to be submitted under the RFG program. 
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 is not 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 sulfur 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.

	Additionally, since California’s state gasoline sulfur requirements
are as stringent as those under the gasoline sulfur program for most of
the remainder of the nation’s gasoline, and since California has its
own compliance and enforcement provisions, California gasoline is exempt
from most of the requirements of the sulfur program.

	3(b)	Public Notice Prior to Submission to OMB

	Public comment on the ICR requirements under the Tier 2 gasoline sulfur
rule was solicited in the proposal for the rule as published in the
Federal Register.  The final ICR was modified per internal and external
comments as appropriate.

	We received few comments on the information collection request burdens
associated with the gasoline sulfur rule.  Most regulated parties have
been fulfilling reporting, recordkeeping and testing requirements under
the RFG program.  Much of the cost and hourly burden associated with the
reporting and recordkeeping requirements under the gasoline sulfur rule
are already accounted for under the ICR for the RFG program. Some of the
information collection burdens associated with this ICR are the result
of provisions designed to provide refiners and importers with
flexibility in demonstrating compliance with the sulfur standards during
the phase-in of the rule (e.g., the small refiner and GPA provisions). 

	Public comment was solicited on this renewal of the Tier 2 gasoline
sulfur rule ICR.  No comments were received.

	3(c)	Consultations

The initial estimates in this ICR were developed after consultation with
industry and after consideration of comments recorded on the proposed
rule.  This renewal will be shared with representatives from industry
prior to being submitted to OMB.

		3(d)	Effect of Less Frequent Collection

	The gasoline sulfur program requires refiners and importers to submit
annual reports, which, by the information contained therein,
demonstrates a party’s compliance with the applicable sulfur
standards.  The information contained in such reports includes batch
specific information regarding the sulfur content and volume of a
refinery’s or importer’s gasoline.  Less frequent submittal of such
reports would severely hinder EPA’s ability to monitor compliance, and
would likely lead to noncompliance.  Additionally, requiring less than
every-batch sampling and testing, except for those few situations
allowed by EPA, would  make the sulfur cap requirement (i.e., the per
gallon maximum sulfur content) meaningless, and would likely lead to
extreme excursions in fuel sulfur content which could affect emission
control systems and lead to increased emissions.  This would be an
unacceptable outcome given that the gasoline sulfur program is intended
to lead to reduced emissions in part by compatible vehicle and fuel
interaction.  Given that the reporting and sampling/testing requirements
are similar to the requirements under the RFG program, and that the
sulfur reports can be included in the reports for these programs,
requiring less frequent collection would likely increase the reporting
burden.

	3(e)	General Guidelines

	This information collection activity complies with the guidelines in 5
CFR 1320.6, except that respondents are required to keep certain records
for longer than three years.  Specifically, all parties are required to
keep PTDs and records of quality assurance programs for five years, and
refiners and importers are required to keep their compliance records for
five years. With one exception, as discussed below, records related to
the ABT credit trading program are also required to be retained for five
years.  The information required to be retained will facilitate EPA’s
identification of the source of any gasoline found to be in violation of
the sulfur standard.  Much of the information required under the
gasoline sulfur rule is already required under the RFG program, and most
records are required to be kept for five years under the RFG program. 
Therefore, the recordkeeping requirements under the gasoline sulfur rule
impose little additional burden.  Five years is the applicable statute
of limitations for the RFG and other fuel programs.  See 28 U.S.C. 2462.

	Refiners and importers submit a limited amount of proprietary
information, such as batch volume and sulfur content in their annual
reports.  EPA believes that requiring annual reports provides an
appropriate and effective means of monitoring compliance with the
standards under the sulfur program.  This type of information has been
collected in the past and will be safeguarded in the same manner as data
required by other EPA directives.  Pertinent information, whether kept
by the respondent or by a contractor, is subject to auditing by EPA. 
Consequently, EPA officials will require voluntary entry and access to
facilities.

	3(f)	Confidentiality

	

	As discussed in 3(e) above, proprietary information  may submitted by
refiners and importers for demonstrating compliance with the sulfur
standards Such information is protected in accordance with the EPA
regulations at 40 CFR Part 2. and established Agency procedures.

	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 gasoline
for use in the U.S.)

-	Importers of gasoline into the U. S.

-	Gasoline distributors, carriers, wholesale purchaser-consumers, and
retailers

-	Users of research and development gasoline (testing laboratories)

Table 4(a).1: Respondent Industry Classification Codes

Industry	NAICS1 Codes	SIC2 Codes	Defined by SBA as a 

Small Business If:3

Gasoline Refiners	32411	2911	< 1500 employees

Gasoline Importers	42272	5172	<  100 employees

Gasoline Terminals	42271	5171	<  100 employees

Gasoline Pipelines	48691	4613	<  100 employees

Truckers and Other 

Gasoline Distributors	48422	4212	< 18.5 million dollars

Gasoline Retailers and 

Wholesale Purchaser-Consumers	44711

44719	5541	< 6.5 million dollars

Testing Laboratories	54138	8734	< 5 million dollars

1) North American Industry Classification System

2) Standard Industrial Classification system

3) According to Small Business Administration’s (SBA) regulations (13
CFR 121), businesses with no more than the listed number of employees or
dollars in annual receipts are considered “small entities” for
purposes of conducting a regulatory flexibility analysis.

	4(b)	Information Requested

	The recordkeeping and reporting requirements applicable to the
regulated parties vary depending on their position in the gasoline
production and distribution stream and their potential to influence the
sulfur content of gasoline.  The regulated parties are divided into
groups (and sub-groups) as indicated in the list below, based on the
applicable recordkeeping and reporting requirements.

-	Gasoline Refiners and Importers

-	Additional and/or alternative requirements exist if:

-	Refiner qualifies and opts to use the small-refiner provisions

-	Refiner or importer participates in the ABT credit trading program

		-	Refiner or importer opts to use the GPA provisions

-	Refiner (including parties who blend gasoline at a terminal facility)
produces gasoline by blending butane or other blendstocks into
previously certified gasoline

-	Gasoline Distributors (Gasoline Terminals, Pipelines, and Truckers)

-	Additional requirements exist for distributors of gasoline subject to
the small refinery standards (SRGAS).

-	Gasoline retailers and wholesale purchaser-consumers (WPC)

-	Additional requirements exist for retailers and WPCs of exempted
research and development (R&D) gasoline

-	Users of R&D gasoline (testing laboratories)

	(i)	Data items, including recordkeeping requirements

	The information collection requirements are categorized in the
following lists according to which regulated parties they apply. 
Certain requirements, such as the PTD requirements, are broadly
applicable to most parties who transfer gasoline.  These more generally
applicable requirements are discussed separately from the requirements
that apply only to specific groups of regulated parties.  Additional
and/or alternative requirements applicable to subgroups of respondents
are also discussed separately.  Where a regulated party is not
specifically mentioned, only the most broadly applicable requirements
apply.

	A number of recordkeeping and reporting requirements are only
applicable when parties exercise the option to comply with alternative
compliance requirements.  These requirements are primarily associated
with the optional small-refiner, GPA and temporary hardship relief
provisions that are available during the phase-in years of the gasoline
sulfur program, and the ABT credit and allotment trading provisions. 
Other alternative requirements apply to certain gasoline blending
practices, and to the testing requirements for truck importers.  These
optional alternative compliance requirements are designed to ease the
burden of compliance.  After the gasoline sulfur program is phased in,
the optional small refiner, GPA and temporary hardship relief provisions
will no longer be available, and the associated reporting and
recordkeeping requirements will expire.  The presence of an “*” in
the following list of requirements indicates an explanatory note
regarding the applicability of these requirements. 				

(A)	Broadly-Applicable Requirements

	The following requirements apply broadly to all of the regulated
parties listed above.  The responsibilities of gasoline distributors
(gasoline terminals, pipelines, and carriers) and gasoline retailers and
WPCs are primarily related to compliance with the following broadly
applicable requirements.  Some terminal or other facility operators
blend butane or other blendstocks into previously certified gasoline. 
These gasoline producers are considered refiners under the sulfur
program, and are discussed under the requirements for refiners.  Unless
specifically noted, the PTD requirements listed below do not result in
any new activities for gasoline distributors, retailers, and WPCs.

	

-  The gasoline sulfur rule requires persons who manufacture, import,
sell, offer for sale,    dispense, distribute, supply, offer for supply,
store, or transport gasoline to include the    following information in
PTDs that accompany each transfer of gasoline:

-	PTDs that accompany the transfer of gasoline manufactured by small
refiners and designated as SRGAS are required to identify the gasoline
as SRGAS and designate the applicable downstream cap.

-	PTDs that accompany the transfer of GPA gasoline are required to
identify the gasoline as being GPA gasoline and include a statement that
the gasoline may not be distributed or sold for use outside the GPA.

* The small refiner and GPA provisions allow the production of special
classifications of gasoline.  The presence of these special
classifications of gasoline in the distribution system necessitates the
inclusion of additional information on gasoline PTDs.  After January 1,
2011, gasoline which has these special classifications will no longer
enter the distribution system.  When all of this gasoline has gone
through the system and been used, the additional PTD requirements will
no longer be applicable.  The total number of gasoline batches is not
increased due to the inclusion of these additional gasoline
classifications.  Therefore, this requirement does not result in an
additional burden for industry due to the entry of a greater number of
PTDs into the distribution system.  Small refiners and GPA refiners
experience an additional burden associated with adding the required
information to the PTDs.  Parties in the gasoline distribution chain
that handle PTDs are not required to undertake any new activities due to
the additional information on the PTDs.

* Except for transfers to truck carriers, retailers and wholesale
purchaser-consumers, product codes can be used to convey the required
information if such codes are clearly understood by each transferee. 
This allowance lessens the burden of compliance and is consistent with
the requirements under the RFG program.

-	Under the gasoline sulfur rule, any party required to conduct sampling
and testing for sulfur content must retain records regarding:

-	The location, date, time, tank or storage tank identification for each
sample collected

-	The name and title of the person who collected the sample and the
person who performed the testing

-	The results of the test as originally printed or recorded, and any
record which contains a result that is not identical to the originally
printed or recorded test

* With the exception of the last item in the list, the required records
already are maintained under the RFG program.

-	For purposes of establishing an affirmative defense to a violation,
parties other than retailers or wholesale purchaser-consumers must be
able to provide business records documenting the following:

	-	A periodic sampling and testing program designed to ensure that the
gasoline meets the applicable sulfur standard

	-	On each occasion that gasoline is found not to be in compliance with
the applicable sulfur standard, the actions taken to stop the sale or
distribution of any gasoline found not to be in compliance, and the
actions taken to remedy the violation and the factors that caused the
violation (such as removing the non-complying gasoline from the
distribution system and taking steps to prevent future violations)

*Although periodic quality assurance sampling and testing is not new
under the fuels regulations, quality assurance sampling and testing for
sulfur is a new requirement under the sulfur program.  The maintenance
of business records establishing that steps were taken to prevent future
violations is new under the sulfur program.  However, no new activities
for the regulated parties result from this new requirement, since such
records typically are maintained as a customary business practice.

-	Records are required to be maintained for five years from the date
they were create with one exception, as noted below.  

* In most cases, this requirement does not impose an additional burden
because the required records are already maintained under other EPA
fuels programs, or the records are maintained as a customary business
practice.  However, for distributors, retailers and WPCs of CG,  the
requirement to maintain PTDs for five years is a new requirement under
the gasoline sulfur program.  In evaluating the burdens associated with
the information collection requirements under the RFG program, EPA
assumed that the requirement that retailers and WPCs retain PTDs
associated with the transfer of RFG for five years did not result in a
significant additional burden on these parties.  The premise of this
assumption was that most retailers and WPCs already retain gasoline PTDs
as customary business practice.  Based on this assumption, the burden of
the requirement to retain PTDs for RFG for five years was estimated to
be zero in the ICR document for the RFG program.  EPA believes that the
requirement that retailers and WPCs retain PTDs under the sulfur program
also results in essentially no additional burden, since the PTDs are
already maintained as a customary business practice or to comply with
tax requirements. 

	

* The requirement to retain records related to the ABT credit trading
program is also new under the gasoline sulfur rule.  Records related to
ABT credits must be kept for five years from the date of generation,
except where credits are transferred.  In such cases, records must be
kept by the transferor for five years from the date of transfer, and by
the transferee for five years from the date of transfer, use or
termination, whichever is later.  As a result, in certain circumstances,
records related to credits may be required to be maintained for longer
than five years from the date of origination.  This potentially longer
retention time is required to enable the Agency to determine the
legitimacy of credit transfers in the context of an enforcement action

		 

	(B)	Requirements Specific to Gasoline Refiners and Importers:

	The following requirements apply to all refiners and importers. 
Additional and/or alternative requirements exist for refiners and
importers that comply with the small refiner or GPA flexibilities, the
ABT credit trading provisions, or other specific provisions, as
discussed in the following sections.

-	Register with EPA no later than three months in advance of the first
date of production or importation of gasoline.

*One-time start up requirement.  Registration under RFG program is
sufficient to satisfy this requirement.  As a result, no additional
burden is expected under the gasoline sulfur rule.

 

-	Calculate the annual average sulfur level for each refinery or all
imported gasoline. 

-	Submit annual sulfur averaging report to EPA for each refinery and
importer by the last day of February following the previous year’s
averaging period.

* A separate sulfur averaging report (in addition to the RFG/CG reports)
is necessary since the sulfur program requires CG and RFG to be averaged
together, whereas under the RFG program, RFG and CG are reported
separately.  Except where indicated, this reporting requirement does not
require the collection of information that is not currently required
under the RFG program.  The calculation of annual average sulfur values
is a new requirement.  However, these calculations are simple and
straightforward.

-	Include the following information in the refinery’s or importer’s
annual average report: 

	-	EPA refiner and refinery facility, or importer registration numbers

	-	Applicable annual average standard 

	-	Total volume of gasoline (RFG & CG) produced at the refinery or
imported

	-	Annual average gasoline sulfur content (RFG & CG) produced at the
refinery or imported

	-	Annual average sulfur level after inclusion of any credits

	-	For each batch of gasoline produced or imported during the averaging
period, the batch number assigned under the RFG program, the date the
batch was produced, and the volume and sulfur content of the batch. 

* The requirement to determine the sulfur content of each batch of CG,
rather than a composite sample of multiple batches, is new under the
sulfur program

-	Arrange to have an attest engagement report submitted to EPA by May
30th of each annual averaging period

	-	The attest engagement must be performed on the underlying
documentation that forms the basis of any required report

	-	The attest engagement must be prepared in accordance with the
procedures established under the RFG program

	-	The attest engagement must be performed by an independent certified
public accountant (CPA)

	-	Internal auditors may assist the CPA pursuant to the Standards for
Attestation Engagements

* No new data is needed to be collected to satisfy this requirement. 
Data collected to comply with the RFG program is reviewed to find the
relevant information, which is then used to determine whether the
refiner or importer evaluated their compliance with the sulfur program
requirements correctly.

	(C)		Additional and/or Alternate Requirements for Refiners and
Importers that        Participate in the ABT Credit Trading Program

	The following recordkeeping and reporting requirements apply to
refiners and importers who utilize the ABT credit trading provisions
under the sulfur program:

-	Calculate ABT credits generated

-	Include in the refinery or importer annual sulfur compliance report
(in addition to the information required for all refiners and importers)
the number of credits:

-	Carried over from the prior averaging period

	-	Generated

	-	Used

	-	Obtained from or transferred to another party, and the name and EPA
refiner or importer registration number of the other party to the
transaction

	-	Expired at the end of the averaging period

	-	Carried over to the subsequent averaging period

	

-	Retain the following records (in addition to records required to be
kept by all refiners and importers), separately by year of creation, and
separately for GPA gasoline and other gasoline, pertaining to the number
of credits:

	-	Carried over from the prior averaging period

	-	Generated

	-	Used

	-	Obtained from or transferred to another party, and the name and EPA
registration number of the other party to the transaction

	-	Expired at the end of the averaging period

		

-	Retain records related to credits for five years from the date of
generation; if transferred, the transferor must retain records for five
years from the date of transfer and the transferee must retain records
for five years from the date of transfer, use or termination, whichever
is later

* As discussed above, these requirements could result in records being
required to be retained for longer than five years in some cases. 

	(D)	Alternative Requirements for Importers who Import Gasoline by Truck

- 	Importers who import gasoline into the U. S. by truck may use the
test results from the foreign terminal to satisfy the sampling and
testing requirements that are otherwise required if the importer
fulfills the following alternative requirements: 

-	Obtain records from the foreign terminal at which the gasoline was
loaded for importation into the U.S. which shows the sulfur content of
each truck load of gasoline imported into the U.S.

-	Conduct a QA program for each truck loading terminal.  QA samples must
be taken from the truck-loading terminal for testing by the importer, or
as an alternative, by an independent laboratory, to determine the sulfur
content.  The sampling and testing must be performed using the
regulatory methods.  The frequency of the sampling and testing must be
at least one sample for each fifty of an importer’s trucks that are
loaded at the terminal, or one sample per month, whichever is more
frequent.

-	Treat each truck load of imported gasoline as a separate batch for
purposes of assigning batch numbers, maintaining records, and reporting

* These requirements only apply if the importer elects to use this
alternative way of       demonstrating compliance.  

-	For a truck importer to use the alternative sampling and testing
procedures, the foreign terminal must agree to fulfill the following
requirements:

	-	Sample and test the gasoline contained in the storage tank from which
the trucks used to transport gasoline are loaded, to demonstrate that a
sulfur content does not exceed the applicable per-gallon standard.  This
sampling and testing must be performed after each receipt of gasoline
into the storage tank, or immediately before each transfer of gasoline
into the importer’s truck.

* These requirements apply only if the importer elects to use the
alternative procedures to demonstrate compliance with the every batch
sampling and testing requirement.  These additional requirements are not
applicable if the importer has an independent third party conduct the
required testing at the foreign terminal facility.  This is generally
the case because of the cost savings that result for the importer as
well as the foreign terminal operator.  Terminal testing conducted by a
third party satisfies the testing requirements that are otherwise
applicable to the importer.  Therefore, EPA expects that these
requirements will not result in additional activities for foreign
terminal operators.  

	

	(E)		Alternative Requirements for Refiners, Pipelines, and Terminals
that Produce       Gasoline by Blending Butane or Other Blendstocks into
Previously Certified       Gasoline (PCG)

-	As an alternative to the every batch sampling and testing
requirements, refiner-blenders who blend butane into PCG may meet the
sampling and testing requirements by using sulfur test results from the
butane supplier provided that the refiner-blender:

-	Obtains a copy of the test results from the butane supplier which
shows that the sulfur content of each load of butane in the storage tank
from which the blendstock was drawn does not exceed the applicable
per-gallon standard and that the tests were performed using the
regulatory method

-	Treats the butane as a batch (re: sulfur content and volume) for the
purpose of calculating compliance with the applicable sulfur averaging
standard

-	Conducts a quality assurance program including sampling and testing
from each butane supplier to demonstrate that butane sulfur content is
below the applicable per-gallon standard.  The frequency of butane
sampling and testing from each supplier must be one sample for every
500,000 gallons of butane received, or one sample every 3 months, which
ever results in more frequent sampling

-	As an alternative to the every batch sampling testing requirements,
refiner-blenders who blend other blendstocks into PCG may:

	-	Sample and test the PCG for sulfur content prior to blending and
subsequent to blending and calculate the volume and sulfur content of
the blendstock by subtracting the volume and sulfur content of the PCG
from the volume and sulfur content of the gasoline subsequent to
blending, or

	-	If every batch of blendstock used during an averaging period has a
sulfur content that is equal to or less then the applicable per-gallon
standard, sample and test each batch of blendstock for volume and sulfur
content when received and treat each blendstock receipt as a separate
batch for purposes of compliance calculations

	(F)	    Requirements for Pipelines and Terminals

	Pipelines and terminals that receive SRGAS must:

-	Fulfill testing requirements to assure that gasoline designated as
SRGAS has the applicable sulfur content to qualify as SRGAS.

	(G)	Requirements for Gasoline Retailers and Wholesale
Purchaser-Consumers:

-	If research and development (R&D) gasoline is to be stored by a
retailer or wholesale purchaser-consumer (WPC), records must be kept to
demonstrate that the retailer or WPC is associated with the facility
that will be using the R&D gasoline.  Documents associated with R&D
gasoline are required to be retained for five years.

	

*The requirement to maintain records associated with R&D gasoline for
five years is a new requirement under the gasoline sulfur program.  As
discussed above, in evaluating the burdens associated with the
information collection requirements under the RFG program, EPA assumed
that the requirement that retailers and WPCs retain PTDs associated with
the transfer of RFG for five years did not result in a significant
additional burden on these parties, since most retailers and WPCs retain
such records as customary business practice.  Similarly, EPA believes
that the requirement that retailers and WPCs retain documents relating
to R&D gasoline no additional burden, since they are normally maintained
as a customary business practice. 

	(H)	Requirements for Users of R&D Gasoline.

	Users of R&D gasoline must submit an application to EPA prior to
initial use of the R&D gasoline.  The application must contain the
following:

-	Statement of purpose

	-	Description of the R& D program, including the sulfur level of the
gasoline expected to be used

-	Expected start and completion dates of the R&D program

-	Estimation of the number of vehicles or engines in which the fuel will
be used and mileage to be accumulated

-	Locations where gasoline will be stored and used

-	Volume of gasoline to be used.

-	Identification of the gasoline distributor or other source of the R&D
gasoline

-	Explanation of why sulfur-compliant gasoline can not be used

	-	Provisions to ensure EPA monitoring capability

* A report must be submitted to obtain an exemption for R&D gasoline
under EPA’s gasoline detergent program.   A similar requirement exists
under EPA’s fuel volatility program.  The application under the sulfur
program may be combined with the report already submitted to gain an
exemption under these existing EPA programs.  Therefore, the R&D
gasoline exemption application under the sulfur program does not result
in additional reports/applications being submitted to EPA.  The
requirement to provide an explanation of why sulfur-compliant gasoline
cannot be used represents a new information collection requirement under
the sulfur program.  However, this information will be readily
available, and the additional activity required to include it in the
application is minimal. 

-	R&D gasoline must be identified on PTDs as gasoline to be used only
for this purpose

* This requirement already exists to establish an exemption from EPA’s
gasoline detergent program.  Since manufacturers of R&D gasoline are
likely to seek an exemption under both the gasoline detergent and sulfur
programs, this PTD requirement should not result in a new activity.

	(ii)	Respondent Activities

	As noted above, much of the information needed for compliance with the
recordkeeping requirements under the gasoline sulfur rule is being
retained either to comply with the requirements of the RFG program or as
a customary business practice.  In addition, much of the information
required to be reported is being reported to EPA to demonstrate
compliance under the RFG program.  The Agency made efforts to ensure
that the requirements under the sulfur program are consistent with, and
do not duplicate the requirements under the RFG program or other EPA
fuels programs.  To the extent possible, EPA has ensured that
information collected and reported under the RFG program can also be
used to demonstrate compliance with the sulfur program without
necessitating additional activities by the regulated parties.  Only in
cases where it is essential to ensure the realization of the projected
benefits of the sulfur program, is EPA requiring testing, recordkeeping,
and reporting beyond that already required under the RFG program.  

	The activities arising out of the testing, recordkeeping, and reporting
requirements outlined in the preceding section are listed below
according to the respondent class to which they apply.  Activities that
apply to a broad class of respondents (such as refiners and importers)
are also applicable to respondent subclasses (such as small refiners,
GPA producers and importers and refiners who participate in the ABT
credit trading program) unless otherwise noted. 

	Several burden activities associated with the gasoline sulfur rule were
required to be completed by 2004.  These activities were included in the
ICR for the final rule.  The burdens and costs included in this ICR are
those which are expected to be incurred during the next three years, the
period of time covered by this ICR.

	The following lists detail the activities of the various regulated
parties:

	(A)      Activities of Gasoline Refiners and Importers

-	Test each batch of gasoline for its sulfur content, retain samples
from the most recent 20 samples collected or for each sample collected
during the most recent 21 day period, whichever is greater, and retain
records of the testing for five years.  As discussed above, the RFG
program allows testing on composite samples taken from multiple CG
batches.  Therefore, this activity requires testing of additional
batches of CG for their sulfur content (and the retention of additional
test reports and CG batch samples), but does not require additional
samples to be taken.

	-	Conduct a QA periodic sampling and testing program for sulfur content
for defense purposes. 

 

-	Calculate the average annual sulfur level of each refinery, or all
imported gasoline, using batch test reports.

-	Submit refinery and importer annual averaging reports to EPA by the
last day of February of the year following the prior year’s averaging
period.

-	Arrange to have an independent third party submit to EPA an attest
engagement report by May 31 of each year for the prior calendar year
averaging period.

* Data collected to comply with the RFG program will be reviewed to find
the relevant information, which will then be used to determine whether
the refiner or importer had evaluated their compliance with the
requirements of the sulfur program correctly.

	(B)      Activities of Gasoline Refiners That Utilize the Small Refiner
Provisions:

-	For transfers of gasoline with a small refiner designation, identify
the gasoline as small refiner gasoline (SRGAS) and indicate the
downstream small refiner sulfur standard on PTDs.

-	Notify EPA if refiner wishes to withdrawal small refiner status.  Upon
notice to EPA, effective on January 1 of the year following such
notification, the small refiner will become subject to the non-small
refiner sulfur standards. 

	(C)		Activities of Refiners and Importers of Geographic Phase-In Area
(GPA) Gasoline

-	Submit annual sulfur averaging reports to EPA for GPA gasoline and
identify GPA gasoline on PTDs.

	(D)		Activities of Refiners and Importers Who are Exempt from
Requirements for Extreme Hardship

-	Submit annual sulfur averaging reports to EPA under the terms of the
hardship application.	

(E)		Activities of Refiners and Importers Who Participate in the ABT
Credit Trading Program

-	Include in the annual sulfur averaging report to EPA.

		-	The credits carried over from prior averaging period, generated,
used, terminated, transferred or carried over to the next averaging
period.

-	The identity of the refiners/refineries and importers (including EPA
registration numbers) involved in credit transactions.

-	Retain records related to ABT credit activity.

*These activities are required only if a refiner or importer elects to
participate in the ABT credit trading program.

	(F)      Alternate Activities for Importers that Import Gasoline by
Truck

-	Use the following alternative requirements to satisfy the requirement
to sample and test every batch of gasoline:

	-	Obtain test results from the foreign terminal at which the gasoline
was loaded which shows the sulfur content of each truck load of gasoline
imported into the U.S.

-	Satisfy the program requirement for each truck loading terminal

*Samples from the truck-loading terminal may be taken for testing either
by the importer or an independent third party.  The frequency of the
sampling and testing must be at least one sample for each fifty of an
importer’s trucks that are loaded at the terminal, or one sample per
month, whichever is more frequent.                  

* These alternative requirements only apply if the importer elects to
use this alternative way of demonstrating compliance.

	

	(G)		Alternative Activities for Refiners, Terminals, and Pipelines That
Produce Gasoline by Blending Butane or Other Blendstocks into Previously
Certified Gasoline

-	For butane blenders, use the test results from the butane supplier to
satisfy the requirement to sample and test each batch of gasoline,
provided that:

-	The butane blender obtains a copy of the test results from the butane
supplier which shows that the butane in the storage tank from which the
butane was drawn does not exceed the applicable per-gallon standard.

-	The butane is treated as a batch regarding sulfur content and volume
for the purpose of calculating compliance with the applicable sulfur
averaging standard.

-	The refiner conducts a QA program including sampling and testing from
each butane supplier to demonstrate that butane sulfur content does not
exceed the applicable per-gallon standard.  The frequency of butane
sampling and testing from each supplier must be one sample for every
500,000 gallons of butane received, or one sample every 3 months, which
ever results in more frequent sampling.

-	For blenders who blend other blendstocks into PCG, calculate the
volume and sulfur content of the blendstock by subtracting the volume
and sulfur content of the PCG from the volume and sulfur content of the
finished blend, or

	-	If every batch of blendstock used during the averaging period has a
sulfur content that is equal to, or less than, the applicable per-gallon
cap standard, sample and test each batch of blendstock received and
treat each receipt as a separate batch for purposes of compliance
calculations

 

	(H)		Activities of Pipelines and Terminals

-	Conduct sampling and testing of gasoline designated as SRGAS.

-	Conduct periodic QA assurance testing for sulfur content for defense
purposes.

	

	(I)		Activities of Users of Research and Development Gasoline:

-	Prior to initial use of R&D gasoline, submit an application to EPA

* As discussed above, the application for an R&D exemption under the
gasoline sulfur program may be combined with the report already
submitted to gain exemptions under other EPA programs. This requirement,
therefore, is not expected to result in additional reports or
applications being submitted to EPA.  

(J)      Activities of Distributors, Retailers, and WPCs

-	WPCs identify and keep records of any R&D gasoline.

	*As discussed above, this activity should not result in any additional
burden since the documents are kept as a customary business practice.

THE INFORMATION COLLECTED--AGENCY ACTIVITIES, COLLECTION METHODOLOGY,
AND INFORMATION MANAGEMENT

	5(a)	Agency Activities

	Agency activities associated with the annual reporting requirements of
this information collection consist of the following:

1) Review submitted reports (includes associated Agency inspections and
investigations);

2) Enter data from the reports into the database; 

3) Analyze requests for confidentiality and provide appropriate
protection;

4) Store the data and archive according to a record retention schedule
conforming to EPA policy. 

	Agency activities associated with the attest engagement requirements of
this information collection consist of the following:

1) Review submitted reports (includes associated Agency inspections and
investigations);

2) Store the data and archive according to a record retention schedule
conforming to EPA policy.

	5(b)	Collection Methodology and Management

	The collection methodology and management of the information collected
is similar to the process used for the RFG program.  The information can
be reported in a standard format.  Additionally, submitters may tailor
their reports for efficient utilization of their individual software
systems, subject to acceptance by the Administrator.  The information
requested is amenable to electronic transfer.

	When the submittal is received, EPA reviews it for completeness and, as
appropriate, enters the data into a database which is incorporated into
the existing database for the RFG program.  EPA may also review
respondents' records as a part of its enforcement effort to ensure the
accuracy and validity of the data submitted.  Non-confidential data will
be made available to the public upon request.

5(c)	Small Refiner, GPA Gasoline and Temporary Relief Flexibilities

	As discussed in Section 3(c) above, as part of its effort to comply
with the Small Business Regulatory Enforcement Fairness Act (SBREFA)
requirements, EPA met several times with small entity representatives. 
Additionally, EPA convened an intergovernmental panel, in accordance
with the SBREFA, which also met with small entity representatives and
which then made specific recommendations to EPA regarding the impact of
sulfur control on small businesses.  A copy of the panel’s report is
available in the docket for this regulatory action.  The report contains
a list of the fuel industry’s participating small entity
representatives, and provides a summary of their comments. 

	The panel’s recommendations were carefully considered by EPA in
developing the gasoline sulfur rule and the specific provisions for
small refiners.  The panel did not recommend a wholesale exemption for
small refiners, but rather that they be provided additional time to
comply.  As a result, the gasoline sulfur rule provides for less
stringent sulfur standards for qualifying small refiners until 2008,
with a possible extension until 2010, to be determined on a case-by-case
basis.  An extension of the gasoline small refiner standards may also be
granted under certain provisions of the diesel sulfur rule until 2011.  

	As discussed in Section 3(c) above, the gasoline sulfur rule also
provided somewhat less stringent standards for refiners who produce
gasoline for certain states and counties in the western U.S. in the
early phase of the program (GPA gasoline).  In addition, the gasoline
sulfur rule provided temporary relief from the sulfur requirements for
refiners who demonstrated that extreme hardship would result in the
absence of such relief.

	Most of the information collection requirements associated with the
temporary flexibilities described above (e.g., small refiner
applications) were required in the early years of the program and are no
longer applicable.  As a result, they are not covered in this ICR. 

   

	A Regulatory Impact Analysis (RIA) which further discusses the measures
taken to minimize the impact on small business entities is included in
the docket for the gasoline sulfur rulemaking.

	5(d)	Collection Schedule

The collection schedule of the sulfur program reporting requirements is
shown in Table 5(d).

Table 5(d). Collection Schedule

Item	Due Date

Refinery and importer annual averaging reports, including ABT
information	Last day of February following the previous year’s
averaging period

Attest reports	May 31 following the previous year’s averaging period



6.	ESTIMATING THE ANNUAL BURDEN AND COST OF THE COLLECTION

	6(a)	Estimating Respondent Burden

	

	The estimated hourly burdens for this ICR are contained in Tables 6(a)1
and 6(a)2.  The accounting assumptions made in making the estimates of
annual hourly burden and cost are summarized after the following tables
on respondent hourly burdens.  

Table 6(a)1: Annual Hourly Burden for Gasoline Refiners and Importers 

Collection  Activity

	                         Annual Burden Hours per Response

	Number of Responses per Respondent per Year	Total Annual

Burden Hours

(per respondent)

	Managerial

	Technical

	Clerical

	Contractor

Equivalent



1) Annual refinery/importer

     averaging  report:

      Refiners

      Importers	       0.083

0.083	0

0	0.25

0.25	0

0	3*

1	0.99

0.33

2) ABT credit and/or

     allotment trading report 	0.25	0.25	0.25	0	1	0.75

3) Additional batch reports for CG: 

      Refs (own equip)

      Refs (lab $74/hr)

      Importers (lab $74/hr)	0.1

0

0	0.7

0

0	0.2

0

0	0

1.0

1.0	400

400

  27	400

400

27

4) Alternative sampling/testing:   

      PCG

      Butane	0

0	0.5

 0.25	0.5

0.5	0

0	40

5	40

3.75

5) Small refiners:  

      PTDs

      Reporting	0

0	1.0

0	1.0

0.5	0 

0	1

1	2.0

0.5



6) GPA Refiners

      PTDs

     Reporting	

0

0	

1.0

0	1.0

0.5	0

0	1

1	2.0

0.5

7) Separate annual averaging

     report for temporary hardship 	0	0	0.5	0	1	0.5

8) Alternative sampling/testing

    for truck importers 	0	0.25	0.75	0	12	12

9) Attest engagements:

       Refineries

       Importers	0

0	5

5	0

0	0

0	3

1	15

5

10) Refiner Q/A periodic

     sampling/testing for

     defense (field test $40)	0	0	0	1.0	10	10

*This estimate is based on an average of 3 refineries per refiner.  In
reality, larger refiners may own several refineries, while smaller
refiners may own only one refinery.



Table 6(a)2: Annual Hourly Burden for Gasoline Terminals, Pipelines and
Users of Research and Development (R&D) Gasoline

Collection  Activity

	Annual Burden Hours per Respondent	Number of Responses per Respondent
per Year	Total Annual

Burden Hours

(per Respondent)

	Managerial

	Technical

	Clerical

	Contractor

Equivalent

($40/hr - field test)



Sampling and Testing 

for S-RGAS 

    Terminals

    Pipelines	0

0	0

0	0

0	1.0

1.0	2

2	2.0

2.0

Q/A Periodic Sampling

and Testing for Defense

    Terminals

    Pipelines	0

0	0

0	0

0	1.0

1.0	10

10	10

10

R&D Applications	0	0	0.5	0	1	0.5



Accounting Assumptions:

	The discussion of the requirements under the sulfur program (Section
4(b)(i)) contains notes on the extent to which these requirements could
be satisfied without necessitating additional activities by using
information that is already collected and submitted to EPA under other
EPA fuels programs.  This discussion helps to support the selection of
the activities that were newly required under the sulfur rule (Section
4(b)(ii)), the selection of the respondent classes (Section 6(a)), and
the following accounting assumptions.



	Accounting Assumptions that Pertain to Labor Costs:

1)	The cost of managerial time is $108/hour.

2)	The cost of technical time is $71/hour.

3)	The cost of clerical time is $49/hour.

	 An hourly equivalent rate of $74 was assumed for dependent laboratory
testing and 

             $40 for field testing for sulfur.

	Accounting Assumptions that Pertain to Activities:

These costs are similar to those used in other recent fuels programs
ICR’s, and are based upon Bureau of Labor Statistics figures from
“Employer Costs for Employee Compensation – Table 12 – Private
Industry, Manufacturing and Non-Manufacturing Industries by Occupational
Group (December 2003).



The following assumptions were made in estimating the burden to refiners
and importers of submitting refinery or importer averaging reports to
EPA:

-  There are currently about 80 refiners and 39 importers of gasoline. 
There are approximately 245 active refineries. 

	-	Preparing the report in the proper format and submitting it to EPA
will require 0.75 hour of a clerical employee’s time and 0.25 hour of
a manager’s time.  Sampling and testing that provides the basis for
these reports is already being conducted for purposes of compliance with
the RFG/anti-dumping requirements, except for the additional testing
required for CG refiners as discussed below.

-  Reporting associated with ABT credit and/or allotment activity is
estimated to be 0.25 hour of managerial time, 0.25 technical time, and
0.25 clerical time.

2)	The following assumptions were used to estimate the additional burden
for refiners and importers associated with testing the sulfur content of
each batch of CG rather than testing composite samples. 

	-	There are approximately 75 domestic refiners that produce CG and 30
importers that import CG

-	The number of additional sulfur tests required on batches of CG will
be approximately 400 for each refiner and 27 for each importer 

-	Composite samples on which tests for the sulfur content of CG have
been performed are made up of samples from approximately 10 separate
batches of CG

-	Refiners of CG produce an average of approximately 440 batches of CG a
year, and importers import an average of 30 batches a year of CG

-	Thus, each refiner conducted approximately 44 tests of sulfur content
on composite samples, and each importer conducted approximately 3 tests
of sulfur content on composite samples

-	2/3 of refiners will perform their own sulfur testing; 1/3 will have
the testing done by an independent third party laboratory  

-	Importers will have testing done by an independent third party
laboratory

	-	A sulfur test conducted at a private laboratory will cost a refiner
or importer $50 for the test itself, plus $24 for the transportation of
the sample to the lab and to perform other administrative functions, for
a total cost of $74/test (this assumes that the cost of the employee to
transport the sample and handle the associated administrative duties is
$24/hour, and it takes one hour to perform the task)

-	An annual cost of the additional testing of gasoline sulfur content
for refiners who conduct their own testing was calculated using the
following assumptions:

-	The hourly burden associated with batch reports for the additional
testing for sulfur is 0.1 hour for managerial time, 0.7 hour for
technical time, and 0.2 hour for clerical time. Since the average CG
refiner will need to test 400 additional batches, the hourly burden for
this additional testing is 400 hours. 

	-	The annual cost of the additional testing of gasoline sulfur content
for refiners and importers who use an independent third party laboratory
was estimated using the following assumptions:

-	Since the average CG refiner will need to test 400 additional batches,
and the cost of a test conducted at a private laboratory is $74 per
test, the annual cost of the additional testing for those refiners that
use a private laboratory is $29,600/year

-	Since the average importer will need to test 27 additional batches of
CG per year, and the cost of a test conducted at a private laboratory is
$74 per test, the annual cost of the testing for such parties is
$1,998/year 

-	There are no additional costs associated with storing the CG batch
samples for 30 days beyond those considered above

3)	The following assumptions were made in estimating the burden that
would result from the use of the alternate provisions to satisfy the CG
batch test requirement by refiners that blend blendstocks (other than
butane) into previously certified gasoline:

-	These alternate provisions will be used to the fullest extent possible
by all refiners who blend blendstocks into previously certified
gasoline, since their use will result in a significant savings in the
overall cost of compliance

-	The refiner already tests each blendstock upon receipt to determine
its sulfur content in order to comply with the requirements of the RFG
program or as a customary business practice

-	Fifteen refiners blend blendstocks other than butane into CG -- on
average, each of these refiners produces 40 batches of gasoline by
blendstock addition

-	The costs related to the use of this alternate provision will be
related to performing calculations using existing data and of keeping
records regarding compliance – these tasks could be accomplished using
0.5 hour of technical time and 0.5 hour of clerical time

4)	The following assumptions were made in estimating the burden
associated with the use of the alternate provisions to satisfy the CG
batch test requirement by refiners who blend butane into previously
certified gasoline:

-	Due to gasoline volatility requirements, butane is blended only during
the winter season (from September 16 through February 28)

-	Refiner/blenders at eight terminals, eight pipelines, and four
refiners blend butane into previously-certified gasoline during the
winter season. 

-	On average, each blender blends butane into five batches of gasoline
during the winter season

-	On average, each blender is supplied butane by two suppliers

-	All tests will be conducted by an independent laboratory at a cost of
$74 per test

-	The administrative duties associated with the alternative requirements
could be accomplished using 0.5 hour of clerical time, and 0.25 hour of
technical time

5)	The following additional assumptions were made in estimating the
burden to refiners of participating in the small refiner program:

-	Only minor changes to the format of the PTDs that are currently used
are required to accommodate the addition of the new information required
regarding the small refiner status of the gasoline -- this task could be
accomplished using 0.5 hour of technical time and 0.5 hour of clerical
time

-	Administrative duties associated with recording, maintaining, and
reporting the information required during the participation in the small
refiner program (such as on the annual sulfur averaging report) could be
accomplished with an additional 0.5 hour clerical time

6)	The following additional assumptions were made in estimating the
burden to refiners and importers of participating in the GPA gasoline
program:

	-	Only minor changes to the formal of the PTDs that are currently used
are required to accommodate the addition of the new information required
regarding the GPA status of the gasoline – this task could be
accomplished using 0.5 hour of technical time and 0.5 hour of clerical
time

	-	Administrative duties associated with recording, maintaining, and
reporting information required during the participation in the GPA
gasoline program (such as on the annual sulfur averaging report) could
be accomplished with an additional 0.5 hour of clerical time

7)	The following additional assumptions were made in estimating the
burden to refiners who are granted temporary hardship relief:

	-	Administrative duties associated with recording, maintaining, and
reporting the information required during the period of temporary relief
(such as on the annual sulfur averaging report) could be accomplished
with an additional 0.5 hour clerical time

8)	The following assumptions were made in estimating the burden
associated with the use by importers that import gasoline by truck of
the alternate provisions to satisfy the requirement to test every batch
of CG:

-	All importers that import by truck will utilize the alternate
provisions, since this will result in a significant reduction in the
overall cost of compliance

-	Foreign terminal operators currently have sampling and testing
conducted by an independent third party as a customary business
practice, and will continue to do so -- this will release the terminal
operator from additional activities which would otherwise be required

-	To minimize the number of tests required, samples are already drawn
after the receipt of each batch of gasoline into the storage tank at the
terminal as a customary business practice

-	All importers will contract with the independent third party that
performs sampling and testing at the terminal(s) from which the importer
receives gasoline to keep records of the required data and report it to
the importer -- by making this arrangement directly, the importer can
demonstrate compliance with the requirement to conduct testing at the
terminal facility without the need to undertake additional sampling and
testing

-	On average, two importers draw gasoline from the same terminal
facility for importation into the U.S. – in such cases, the importers
will split the cost of the third party’s services.

-	Twenty five percent of importers use trucks (10 importers) 

-	The following costs will be billed to importers by the independent
third party for services related to testing conducted at one terminal: 
Independent third party will use an additional 1 hour of clerical
employee time and 0.25 hour of technician time to complete the task (an
additional 10 % of this base cost could be added to account for overhead
cost and to provide a profit margin)

9)	The following assumptions were made in estimating the burden to
refiners and importers of having an independent third party prepare an
attest engagement report for submission to EPA:

-	The main cost of preparing the attest engagement will be associated
with reviewing existing records on gasoline sulfur content

	-	It is estimated this task will require an extra 5 hours of technical
employee time (to account for other costs and to provide a profit margin
an additional 10% could be added to the cost derived using the
assumptions under the previous bullet)

10)	The following assumptions were made in estimating the burden to
refiners, terminals and pipelines who conduct periodic QA testing for
sulfur for defense purposes:

-	60 pipelines and 120 terminals will conduct downstream QA testing for
sulfur in addition to many refiners (RFG refiners typically conduct
downstream QA testing).  Assume $40 cost per periodic test, based on
availability of field test equipment.  Assume 10 samples per year for QA
testing per respondent.  

11)	The following assumptions were made in estimating the burden to
terminal and pipelines that are required to test SRGAS batches for
sulfur content:

1200 terminals and 60 pipelines will test 2 batches of SRGAS for sulfur
annually (many terminals and pipelines will test none and others more
than 2).  Assume cost of testing per batch is approximately $40, based
on availability of field test equipment.

     

12)	The following assumptions were made in estimating the burden to
users of research and development gasoline of adding the required
information to the application submitted to EPA to obtain an exemption:

-	Adding the information on why sulfur compliant gasoline could not be
used will require 0.5 hours of clerical time

	-	This information is already available as a customary business
practice

	*Data reported to EPA under the RFG program and the initial phase of
the gasoline sulfur program was used in formulating these assumptions.

	6(b)	Estimating Respondent Costs

	The estimation of the hourly managerial, technical and clerical
employee pay rates for the various regulated parties as well as the
accounting assumptions used are discussed in the previous section on
respondent burdens.  The estimated costs for the various regulated
parties for this ICR are contained in Tables 6(b)1 and 6(b)2.   



Table 6(b)1: Annual Hourly Costs for Gasoline Refiners and Importers

Collection Activity	                         Labor Cost per Response ($)
Number of  

Responses per Respondent per Year	Total Annual Cost

($ per respondent)



	Managerial

($108/hr)	Technical

($71/hr)	Clerical

($49/hr)	Contractor

Equivalent 



1) Annual refinery/importer

    averaging report:

       Refiners

       Importers	

9

9	

0

0	

12

12	

0

0	

3*

1	

63

21

2) ABT credit and/or allotment trading

     Report	27	18	12	0	1	57

3) Addition batch reports for CG: 

      Refs (own equip)

      Refs (lab $74)

      Importers (lab $74) 	

10

0

0	

50

0

0	108

0

0	

0

74

74	

400

400

27	

28,000

29,600

1,998

4) Alternative sampling/testing: 

      PCG

      Butane	

0

0	

35

18	

24

24	

0

0	

40

5	

2,360

210

5) Small refiners:

      PTDs

      Reporting	

0

0	

71

0	

49

24	

0

0	

1

1	

120

24

6) GPA refiners:

       PTDs

       Reporting	

0

0	

71

0	

49

24	

0

0	

1

1	

120

24

7) Separate annual averaging report

    for temporary hardship	

0	

0	

24	

0	

1	

24

8) Alternative sampling/testing for

    truck importers	

0	

18	

37	

0	

12	

660

9) Attest engagements:

       Refineries

       Importers	

0

0	

355

355	

0

0	

0

0	

3

1	

1065

355

10) Refiner  Q/A periodic sampling &         testing for defense (field
test $40)	

0	

0	

0	

40	

10	

400

* This estimate is based on an average of 3 refineries per refiner.  In
reality, larger refiners may own more refineries, while smaller refiners
may own only one refinery. 



Table 6(b)2: Annual Costs for Gasoline Terminals, Pipelines, Truckers
and Users of Research and Development (R&D) Gasoline

Collection Activity

	                  Cost per Respondent ($)	Number of  Responses per
Respondent per Year	Total Annual

Burden ($ per

respondent

	Managerial

($108/hr)	Technical

($71/hr)	Clerical

($49/hr)	Contractor

Equivalent

($40/hr - field test)



Sampling and Testing

for S-RGAS

Terminals

Pipelines	0

0	0

0	0

0	1.0

1.0	2

2	80

80

Q/A Periodic Sampling and 

Testing for Defense 

Terminals

Pipelines	0

0	0

0	0

0	1.0

1.0	10

10	400

400

R&D Applications	0	0	0.5	0	1	24



	6(c)	Estimating Agency Burden

	Gasoline sulfur reports are handled as part of other fuels reporting,
including items accounted for in the reformulated gasoline (RFG) and
anti-dumping ICR.  This estimate is restricted only to the reporting of
sulfur values to EPA.  The Agency burden consist of  0.10 of a GS-13
technical worker ($ 161,000 including overhead), or $16,000; and 0.10 of
a  GS-7 clerical worker ($ 76,000 including overhead), or $7,600, for a
total of $23,700.

	6(d)	Estimating the Respondent Universe and Total Burden and Costs

Gasoline Refiners and Importers:

	Number of respondents (80 refiners/39 importers)				  119

	Number of responses:							33,344	

	Annual burden hours, all refiners and importers*:				34,252

	Annual cost, all refiners and importers*:					$2,401,130

 *These burden estimates are for all collection activities preformed by
all refiners (see Table 6(e).1) 

Gasoline Terminal and Pipeline Operators:

	Number of respondents (1200 terminals/60 pipelines:			1,260

	Number of responses:							4,320

	Annual burden hours, all terminal/pipeline operators:			4,320

	Annual cost, all terminal operators:						$172,800

Research and Development Applications:

	Number of respondents:							1

	Number of responses:							1

	Annual burden, all R&D gasoline users:					0.5	

	Annual cost, all R&D gasoline users:						$24	

	6(e)	Bottom Line Burden Hours and Cost Tables

	(i)	Respondent Tally

The total annual hourly burden and cost for this ICR is estimated to be
38,573 hours and $2,573,954, respectively.  The total number of
responses for this ICR is estimated to be 37,665.

Table 6(e).1: Annual Burdens and Costs for Gasoline Refiners and
Importers 

Collection Activity

	Responses per

Respondent	Number of 

Respondents	Burden Hours

 per Response	Total Annual

 Cost

 ($ per respondent)	Total Number

 of Responses	Total Hours per 

Year (all refiners

 and importers)	Total Annual

 Cost

 ($ all refiners

 and

 importers)

1) Annual refiner/importer 

    averaging report:

       Refiners

       Importers	

3.0

1.0	

80

39	

0.33

0.33	

63

21	

240

  39	

80

13	

5,040

   819

2) Credit / allotment report:                              	1.0	70	0.75
57	70	53	3,990

3) Test add’l batches of CG 

      Refiners (own equip)

       Refiners (lab)

       Importers (lab)	

400

400

  27	

50

25

30	

1.0

1.0

1.0	

28,000

29,600

  1,998	

20,000

10,000

    810	

20,000

10,000

810	

1,400,000

   740,000

     59,940

4) Alternative sampling &

    testing:

       PCG

       Butane	 

 40

   5	

15

20	

1.0

0.75	

2,360

   210	

600

100	

600

  75	

35,400

  4,200

5) Small refiners:  

       PTDs

       Reporting	

1.0

1.0	

12

12	

2.0

0.5	

120

  24	

12

12	

24

  6	

1,440

   288

6) GPA refiners: 

       PTDs

       Reporting	

1.0

1.0	

30

30	

2.0

0.5	

120

  24	

30

30	

60

15	

3,600

   720

7) Annual averaging report

    for temporary hardship	

1.0	 

 2	

0.5	

  24	

  2	

  1	

    48

8) Alternative sampling/testing

   for truck importers	

12	

10	

1.0	

660	

120	

120	

6,600

9) Attest engagements: 

       Refiners

       Importers	

3.0

1.0	

80

39	

5.0

5.0	

1065

  355	

240

39	

1,200

   195	

85,200

13,845

10) Refiner Q/A testing

      for defense	

10	

100	

1.0	

400	

1,000	

1,000	

40,000

Total



	33,344	34,252	2,401,130



Table 6(e)2: Annual Burdens and Costs for Gasoline Terminals, Pipelines
and Users of Research and Development (R&D) Gasoline 

Collection Activity

	Annual Responses per Respondent	Number of Respondents	Burden Hours per
Response	Total Annual Cost ($ per respondent)	Total Number of Responses
Total Hours per Year (all entities)	Total Annual Cost ($ all entities)

Sampling/testing

 for S-RGAS:

   Terminals

   Pipelines	

2

2	

1200

    60	1.0

1.0	80

80	2400

 120	2400

120	96,000

4,800

Q/A periodic sampling/

testing for defense:

   Terminals

   Pipelines	

10

10	

120

  60	

1.0

1.0	400

400	1200

600	1200

600	48,000

24,000

R&D Applications	  1	    1	0.5	24	1	0.5	24

Total



	4,321	4,321	172,824



(ii) Variations in the Annual Bottom Line

	No annual variations in the respondent reporting/recordkeeping burden
or cost over the course of this clearance period are expected.  

	6(f)	Reasons for Change in Burden

	This submittal is a renewal of the ICR for the Tier 2 gasoline sulfur
rule.  The initial submittal estimated the annual burden and costs
associated with the initial phase of the program through 2003  It was
subsequently renewed.  The only change is the Agency burden which
increased $ 1,070. 

	6(g)	Burden Statement

	This information collection request covers the requirements regarding
the control of gasoline sulfur content in Tier 2 gasoline sulfur
program.  The information collection requirements for certifiers of
motor vehicles under the sulfur program are covered under a separate
information collection request.  Sections 6(d) & (e) presents the total
estimated burden on parties involved in the production, distribution,
and sale of gasoline under the sulfur program for the next three years. 
The total annual burden for the three years covered by this ICR (August
1, 2010 – July 21, 2013) is approximately 38,573 hours and $2,573,954.
 Because the universe of respondents to the sulfur program is quite
diverse, there is no “typical” respondent; however, the burden
estimates for the various individual activities in Section 6(a) can be
used to estimate the burden for a particular respondent.  The annual
burden is estimated to average between 12 and 500 hours per respondent,
depending on the information collection requirements of the particular
party.  The average number of hours per response is estimated to be
approximately 1 hour.  We estimate there will be 37,665 annual
responses.

	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 and requirements; train
personnel to be able to respond to a collection of information; search
data sources; complete and review the collection of information; and
transmit or otherwise disclose the information.  An agency may not
conduct or sponsor, and a person is not required to respond to, a
collection of information unless it displays a currently valid OMB
control number.  The OMB control numbers for EPA's regulations are
listed in 40 CFR Part 9 and 48 CFR Chapter 15.  

	To comment on the Agency's need for this information, the accuracy of
the provided burden estimates, and any suggested methods for minimizing
respondent burden, including the use of automated collection techniques,
EPA has established a public docket for this ICR under Docket ID Number
EPA-HQ-OAR-2010-0258, which is available for online viewing at  
HYPERLINK "http://www.regulations.gov/"  www.regulations.gov , or in
person viewing at the Air and Radiation Docket and Information Center in
the EPA Docket Center (EPA/DC), EPA West, Room 3334, 1301 Constitution
Avenue, NW, Washington, D.C.  The EPA Docket Center Public Reading Room
is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding
legal holidays.  The telephone number for the Reading Room is (202)
566-1744, and the telephone number for the Air and Radiation Docket and
Information Center is (202) 566-1742.  An electronic version of the
public docket is available at www.regulations.gov.  This site can be
used to submit or view public comments, access the index listing of the
contents of the public docket, and to access those documents in the
public docket that are available electronically.  When in the system,
select “search,” then key in the Docket ID Number identified above. 
Also, you can send comments to the Office of Information and Regulatory
Affairs, Office of Management and Budget, 725 17th Street, NW,
Washington, D.C. 20503, Attention: Desk Officer for EPA.  Please include
the EPA Docket ID Number EPA-HQ-OAR-2010-0258 and OMB Control Number
2060-0437 in any correspondence.

	C.	Attachments

	Citations regarding the legal authority for the information collection
requirements related to the control of gasoline sulfur content under the
sulfur program are contained in the attachment.  Due to the length and
complex technical nature of the regulations under the sulfur program,
they are not contained in the attachment.  These sulfur regulations are
located in subpart H of 40 CFR part 80.  

 

Attachment

Legal Authority Citations

Clean Air Act

42 U.S.C. 7414.

Section 114: Inspection, Monitoring, and Entry

(a) For the purpose: 

(i) of developing or assisting in the development of any implementation 
plan under Section 110 or 111(d), any standard of performance  under
Section 111, any emission  standard under Section 112,  [, or any 
regulation of solid waste combustion under Section 129,]  [or any 
regulation under section  129 (relating to solid waste combustion),]1 

(ii) of determining  whether any person is in violation of  any  such
standard or any requirement of such a plan, or

(iii) carrying out any provision of  this Act (except a  provision of
title II with respect to a  manufacturer of new motor vehicles or new
motor vehicle engines):

(1) the Administrator may require any person who owns or operates any
emission source, who manufactures emission control equipment or process
equipment, who the Administrator believes may have information necessary
for the purposes set forth in this subsection, or who is subject to any
requirement of this Act (other than a manufacturer subject to the
provisions of Section 206(c) or 208 with respect to a provision of 
title II) on a one-time, periodic or continuous basis to - 

    						(A) establish and maintain such records;

    						(B) make such reports;

    						(C) install, use, and maintain such monitoring  equipment, and
use such audit procedures, or methods;

    						(D) sample such emissions  (in accordance with such procedures
 or methods,  at  such locations,  at such  intervals, during such
periods and in such  manner as the Administrator shall prescribe);

    						(E) keep records on control equipment parameters, production
variables or other indirect data when direct monitoring of emissions is
impractical;

    						(F)  submit compliance certifications in  accordance with
Section 114(a)(3); and

   						(G) provide such other information as the Administrator may
reasonably require; and

    				(2  the Administrator or his authorized representative, upon
presentation of his credentials - 

(A)  shall have a right of entry to, upon, or through any premises of
such person or in which any records required to be maintained under
paragraph (1) of this section are located, and

B) may at reasonable times have access to and copy any records, inspect
any monitoring equipment and method required under paragraph (1), and
sample any emissions which such person is required to sample under
paragraph (1).

45 U.S.C.  7542.

Section 208: Information Collection:

		(a) Manufacturers responsibility.

		"Every manufacturer shall establish and maintain such records, make
such reports, and provide such information as the Administrator may
reasonably require to enable him to determine whether such manufacturer
has acted or is acting in compliance with this part and the regulations
thereunder and shall, upon request of an officer or employee duly
designated by the Administrator, permit such officer or employee at
reasonable times to have access to and copy such records."

	1The report forms for the fuels programs may be found on the fuels
reporting page of the Office of Transportation and Air Quality (OTAQ)
web site,   HYPERLINK "http://www.otaq.gov"  http://www.epa.gov/otaq.   

	2 We currently have regulatory requirements for conventional and
reformulated gasoline adopted under Sections 211(c) and 211(k) of the
Act, in addition to the “substantially similar” requirements for
fuel additives of Section 211(f).  These requirements directly or
indirectly control sulfur levels in gasoline.  See the RIA for more
details.

