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 1907.03 December 2003 Transportation and Regional Programs Division Office of Transportation and Air Quality U. S. Environmental Protection Agency 2 1. IDENTIFICATION OF THE INFORMATION COLLECTION 1( a) Title Of The Information Collection ICR: Recordkeeping and Reporting Requirements Regarding the Sulfur Content of Motor Vehicle Gasoline Under the Tier 2 Rule ( 40 CFR part 80, subpart H).

1( b) Short Characterization/ Abstract This Information Collection Request ( ICR) would make additions to the existing fuels regulations applicable to refiners, importers, marketers, distributors, retailers and others regarding the sulfur content of motor vehicle gasoline. The additions covered under this ICR were proposed by the Environmental Protection Agency ( EPA) in a Notice of Proposed Rulemaking ( NPRM) entitled " Control of Air Pollution from New Motor Vehicles: Proposed Tier 2 Motor Vehicle Emissions Standards and Gasoline Sulfur Control Requirements." The final rule, published in the Federal Register February 10, 2000, added some minor additional requirements.

The information under this ICR will be collected by EPA's Transportation and Regional Programs Division, Office of Transportation and Air Quality, Office of Air and Radiation ( OAR), and by EPA's Air Enforcement Division, Office of Regulatory Enforcement, Office of Enforcement and Compliance Assurance ( OECA). The information collected will be used by EPA to evaluate compliance with 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.

The scope of the recordkeeping and reporting requirements for each type of party ( e. g., refiners, marketers, or retailers of gasoline), 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 will have 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 retailers, will 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 ( hereafter referred to collectively as the RFG program). The ICR for the RFG program 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 RFG program ICR. There were 192,063 respondents to the requirements of the sulfur program at a total annual burden of 12,532 hours and an annual cost of $ 325,702 during the early years of the program ( until January 2004). This includes the initial burden associated with learning and adapting to the new requirements.

There will be 37,818 responses and a total annual burden of 38,742 hours and an annual 3 cost of $ 2,405,185 beginning in 2004. Although for clarity, a description of the burden covered by the early years of the program ( up to January 1, 2004) is included here, this ICR only covers the burdens incurred after January 1, 2004. The difference between the total number of respondents in the early years of the program and subsequent years is due to the large number of small gasoline distributors and retail gasoline service stations that needed to become familiar with the requirements of the new program. These new requirements, however, do not impose additional recordkeeping requirements on these parties beyond what they currently are required to keep under the reformulated gasoline program.

Under the terms of clearance, EPA was required to re examine the burden estimates based on any experience with implementing the collection to ensure that the estimates are accurate. We have re examined the information collection burden estimates in this ICR based on our experience since the beginning of the Tier 2 program. We believe that our burden estimates for the first phase of the program were accurate. Although most of the burdens associated with the first phase of the program ( e. g., familiarizing employees with new requirements) are not required after January 1, 2004, other burdens are required beginning on January 1, 2004 ( e. g., reporting compliance with the gasoline sulfur standards). Based on our experience with the first phase of the Tier 2 program, and also the reformulated gasoline program, we believe that our estimates of the burdens under the Tier 2 rule beginning on January 1, 2004, are also accurate.

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

( 1) Testing.

Refiners and importers. Under the gasoline sulfur control program, refiners and importers must test each batch of gasoline for its sulfur content. Although this requirement already exists 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 composite samples from multiple batches and test the composite sample. However, the sulfur program allows composite sampling of CG for purposes of generating sulfur credits and allotments in 2000  2003, prior to the effective date of the sulfur standards ( called " early credits" and " early allotments"). Every batch testing is required when the sulfur standards become effective beginning January 1, 2004. Beginning in 2004, for foreign refiners of gasoline subject to the small refinery standards, load port and port of entry testing will be required to be conducted by an independent 3rd party. Refiners and importers will also conduct quality assurance ( QA) periodic sampling and testing for sulfur for defense purposes beginning in 2004.

Butane blenders. Under the RFG program, butane blenders are required to test RFG and some CG for sulfur content before and after blending. Under certain circumstances, blenders are allowed to use butane producer/ supplier records to comply with the sulfur content testing requirements for CG under the RFG program. The gasoline sulfur program, under certain circumstances, also will allow the sulfur content of RFG and CG to be determined by using butane 4 producer/ supplier data ( as an alternative to testing gasoline before and after blending).

Refiners Blending Other Blendstocks into Previously Certified Gasoline. Under the RFG program, blenders are required to test RFG and CG before and after blending. Under certain circumstances, the sulfur program will allow the sulfur content of CG to be determined by testing each batch of blendstock once when it is received, and by calculating the sulfur content of the finished gasoline by using records on the sulfur content and volume of blendstock and base gasoline used.

Terminals and Pipelines. To qualify for the small refiner gasoline ( S RGAS) downstream standards, gasoline must be sampled and tested for compliance with the downstream standard at each terminal or pipeline location subsequent to the most recent receipt of gasoline ( beginning in 2004). Terminals and pipelines currently conduct periodic quality assurance sampling and testing for defense purposes under the RFG and other fuels programs. Beginning in 2004, terminals and pipelines also will be conducting periodic QA testing for sulfur.

( 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. Under the RFG program, independent sampling and testing is required for RFG, and refiners who meet the independent analysis requirements for RFG will also have met the sample retention requirements under the sulfur rule. For CG, this is a new requirement. However, under the sulfur program, refiners will be allowed to conduct their own testing rather than having it conducted at an independent laboratory which will provide additional flexibility for some parties.

( 3) Recordkeeping. Under current 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 both RFG and CG through the distributor level for voluntary defense purposes and QA program records. PTDs also are required for gasoline designated as S RGAS and gasoline designated for use in the GPA.

The record retention time for most records is five years, which is the same as under the RFG program ( for both RFG and CG). For parties who supply RFG, the retention of PTDs will not represent a new requirement. For CG, this will be a new requirement for retailers. However, the additional burden is minimal because all retailers already receive transfer documents as a customary business practice and maintain them for 4 or 5 years under state tax laws.

One exception exists to the requirement that records be maintained for five years. Under the averaging banking and trading ( ABT) and allotment trading provisions of the gasoline sulfur 1The report forms for the fuels programs may be found on the reformulated gasoline page of the Office of Transportation and Air Quality ( OTAQ) web site, http:// www. epa. gov/ otaq.

5 program, records related to ABT credits and allotments must be maintained for five years after the date of their generation, except that records relating to credit or allotment transfers must be kept by the transferor for five years from the date they were transferred, and by the transferee for five years from the date they were transferred, used or terminated, whichever is later. Records related to early ABT credits must be kept for five years after they are generated, used or terminated, whichever is later. Where early ABT credits are transferred, records must be kept by both parties for five years from the date they were transferred, used or terminated, whichever is later. As a result, in certain cases, the sulfur program could require records related to the ABT credits or allotments to be maintained for longer than five years.

( 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. The RFG program contains similar reporting requirements. 1 Reports will be 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. It is EPA's intention to provide in the near future a means by which all sulfur data required to be reported will be transmitted to EPA electronically.

( 5) Attest Requirements. The gasoline sulfur program will require 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 currently required under the RFG program for both RFG and CG. There will be a small incremental cost of including the information that will be newly required under the sulfur program within the scope of these attest engagements.

( 6) ABT Credit and Allotment Trading Provisions. The gasoline sulfur program's ABT credit and allotment trading provisions reduce the overall cost of compliance by providing refiners and importers flexibility in complying with the controls on gasoline sulfur content. Domestic and foreign refiners ( but not importers) who generate early credits ( 2000  2003) under the ABT program will be required to provide information regarding their refinery baseline sulfur level and to report annually regarding credit generation. Domestic refiners ( but not foreign refiners) and importers will be required to report annually regarding the generation, transfer, and use of credits and allotments beginning in 2004.

( 7) Small refiners. Most of this ICR's requirements for small entities are associated with alternate sulfur standards during the phase in of the program that are designed to lessen the overall burden of compliance for these entities. Eligible small refiners who participate in the small refiner program will be required to provide information regarding their baseline sulfur level and gasoline volume ( as a one time action), in addition to the recordkeeping and reporting requirements 6 applicable to all refiners. Small refiners who anticipate the need for an extension of these alternate standards must submit progress reports and information to substantiate the need for the extension. Small refiners may request an adjustment of their per gallon cap sulfur standard by submitting a letter to EPA substantiating the need for such relief.

( 8) Small foreign refiners. The provisions regarding individual refinery baseline establishment for small foreign refiners who already have an approved individual baseline under the anti dumping regulations are the same as for domestic refiners. The baseline establishment requirements for small foreign refiners who do not already have an approved individual baseline under the antidumping regulations are similar to the current provisions under the RFG program for foreign refiners at 40 CFR 80.94.

As an alternative to the load port/ port of entry testing requirement for small foreign refiners who transport by truck, the sulfur program requires the refiner to submit a plan designed to ensure segregation of the small refiner gasoline and to retain product shipment documents for 5 years.

( 9) Truck Importers. For truck importers, alternative provisions to the every batch testing requirement are provided to reduce the burden of compliance and to help ensure adequate gasoline supply in certain areas. Under this approach, truck importers are allowed to rely on test records from the foreign terminal, but must conduct quality assurance testing of the gasoline.

( 10) 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 will be required to submit a sulfur baseline for purposes of determining the sulfur standards for their GPA gasoline, in addition to the reporting and recordkeeping requirements for all refiners and importers. These refiners and importers will be required to demonstrate compliance with the sulfur requirements separately for their GPA and non GPA gasoline.

( 11) California Gasoline. Gasoline sold in California is exempted from all of the compliance provisions of the program with the exception of those related to PTDs.

California producers of gasoline for use outside of California will be required to satisfy requirements for gasoline used outside of California, including test methods, except that California test methods may be used for CG, as already allowed under the RFG program.

( 12) Refiners Granted Temporary Relief. Under extreme hardship situations, a refiner may be granted a temporary exemption from some or all of the gasoline sulfur requirements. Such refiners will be required to submit information to substantiate the need for temporary relief, as well as a sulfur baseline, in addition to the reporting and recordkeeping requirements for all refiners. 2 A separate ICR Document has been prepared regarding the information collection activities that will be required under the amendments to the requirements for motor vehicle certification proposed as part of the Tier 2 rulemaking.

3 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.

7 2. NEED FOR AND USE OF THE COLLECTION 2( a) Need/ Authority For The Collection The purpose of the Tier 2 vehicle emissions regulations and accompanying gasoline sulfur program is to implement the Congressional mandate to reduce levels of various pollutants across the nation. Section 202 of the Clean Air Act ( CAA) gives EPA the authority to promulgate federal emission standards for new light duty motor vehicles and light duty trucks. Before proposing more stringent emission standards under the Tier 2 rule, Section 202( i) of the CAA required EPA to issue a report to Congress regarding " whether or not further reductions in emissions from light duty vehicles and light duty trucks should be required." EPA was required to " examine the need for further reductions in emissions in order to attain or maintain the national ambient air quality standards," the availability of technology to meet more stringent standards, taking cost, lead time, safety, and energy impacts into consideration, and the cost effectiveness of such standards, including consideration of alternative methods of achieving air pollution reductions.

EPA issued the Tier 2 Report to Congress on July 31, 1998. The report provided evidence that more stringent motor vehicle emission standards were needed, and are technologically feasible and cost effective in the 2004 model year. The report also indicated that more stringent control of gasoline sulfur content would be needed for motor vehicles to meet more stringent emission standards. Accordingly, EPA undertook the Tier 2 rulemaking to formally consider the adoption of more stringent motor vehicle emission standards and gasoline sulfur controls. The gasoline sulfur program with which this ICR is associated is part of the Tier 2 rulemaking process. 2 Section 202( i) of the CAA act prohibits EPA from mandating more stringent emission standards before the 2004 model year. Pursuant to this requirement, emission standards proposed under the Tier 2 rule will be implemented beginning in model year 2004. To ensure that gasoline with acceptable sulfur levels is available when needed by vehicles meeting Tier 2 emission standards, EPA is requiring the gasoline sulfur program to effectively begin in 2004, to ensure that gasoline meeting the sulfur requirements is available at the pump on January 1, 2004.

The gasoline sulfur controls were promulgated under the authority granted by Section 211( c)( 1) of the Clean Air Act. 3 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 8 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) 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 rules.

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 noncomplying 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. Noncomplying 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 Clean Air Act ( 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, if applicable) contained in the annual reports required by this information collection to evaluate the compliance of parties involved in the production and importation of 9 gasoline with the gasoline sulfur control requirements. These reports will also be used by EPA to target compliance investigations. The baseline information submitted by refiners under the small refiner provisions, refiners and importers under the GPA provisions, and refiners under the temporary hardship relief provisions, will be used to determine the refiner's or importer's applicable standards under these provisions. The baseline information submitted by refiners in order to generate early credits under the ABT program will be used to ensure that credits generated are correctly determined. PTDs maintained by parties in the gasoline distribution system and records related to gasoline blending will be used to evaluate the compliance of the 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 and allotment trading programs will be 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 will not be available from another source.

To minimize the information collection burden, refiners and importers who are registered under the RFG program ( 40 CFR 80.76) are considered to have satisfied the registration requirements under the 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, except as explained in 1( b) of this information collection.

3( b) Public Notice Prior to Submission to OMB Public comment on this Information Collection Request was solicited in the Tier 2 NPRM as published in the Federal Register. This final ICR was modified per internal and external comments as appropriate. 10 We received few comments on the information collection request burdens associated with the gasoline sulfur program. Most regulated parties have been fulfilling reporting, recordkeeping and testing requirements under the RFG program. The only negative comments we received related to the every batch testing for sulfur content and sample retention for CG. Much of the cost and hourly burden associated with the reporting and recordkeeping requirements under the sulfur program have already been accounted for under the RFG ICR. Many of the information collection burdens associated with the sulfur program are the result of provisions designed to provide refiners and importers with flexibility in demonstrating compliance with the sulfur standards in the early years of the program ( e. g., the small refiner, GPA, and temporary hardship relief provisions).

3( c) Consultations In the course of normal contact with regulated parties regarding the current RFG program, and specifically to discuss potential aspects of the gasoline sulfur program in the proposal stage, EPA discussed aspects of this information collection with representatives of the refining industry, importers, distributers, butane blenders, gasoline testing laboratories, manufacturer/ sellers of sulfur testing equipment, and the California Air Resources Board regarding the burden of this information collection.

As part of its effort to comply with the requirements of the Small Business Regulatory Enforcement Fairness Act ( SBREFA) requirements, EPA met several times with small entity representatives. Additionally, EPA convened an intergovernmental panel, in accordance with the SBREFA, which met with small entity representatives and made specific recommendations to EPA regarding the impact of sulfur control on small businesses. These recommendations were carefully considered by EPA in developing the proposed and final rules and the specific provisions for qualifying small refiners. The panel did not recommend a wholesale exemption for small refiners, but rather that they be provided additional time to comply. EPA's small refiner provisions provide individual interim standards for each small refiner and delay compliance with the national standards for several years. The interim standards provide a degree of environmental benefit which would be absent if small refiners were given a wholesale exemption from the proposed sulfur control requirements. A copy of the Panel's report is available in the docket for the sulfur rule. The report contains a list of the fuel industry's participating small entity representatives, and provides a summary of their comments.

In response to the NPRM, EPA received many comments from the refining industry regarding difficulties that some refiners may have in complying with the standards in the time period proposed. In consideration of these comments, EPA concluded that many states in the western U. S. have a less urgent environmental need for ozone precursor reductions in the near term, and that their gasoline supply is dominated by small capacity, geographically isolated refineries located in that area. As a result, to allow such refineries more compliance flexibility, the final rule provides for somewhat less stringent standards for gasoline sold in specified states and adjacent counties in the western U. S. during the early years of the program. The final rule also 11 includes provisions for temporary relief from the sulfur requirements for any refiner who can demonstrate that extreme hardship would result in the absence of such relief.

3( d) Effect of Less Frequent Collection The gasoline sulfur program requires refiners and importers to submit annual reports which will, by the information contained therein, demonstrate a party's compliance with the applicable sulfur standards. The information contained in such reports will include 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 current 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. Refiners and importers are also required to keep their compliance records for five years. The PTD information will facilitate EPA's identification of the source of any gasoline found to be in violation of the sulfur standard. The RFG program currently requires refiners and importers to retain records which include much of this information. Therefore, these recordkeeping requirements should impose little additional burden. Additionally, most of the records that will be required to be kept for five years already are subject to that requirement by the RFG program. Five years is the applicable statute of limitations for the RFG and other fuel programs. See 28 U. S. C. 2462.

As noted in Section 1. b., there are some exceptions to the five year record retention requirement relating to the ABT credit and allotment trading programs. Records related to ABT credits and allotments must be maintained for five years after the date of their generation, except that records relating to credit or allotment transfers must be kept by the transferor for five years from the date they were transferred, and by the transferee for five years from the date they were transferred, used or terminated, whichever is later. Records related to early ABT credits must be kept for five years after they are generated, used or terminated, whichever is later. Where early ABT credits are transferred, records must be kept by both parties for five years from the date they were transferred, used or terminated, whichever is later. These requirements are necessary to 12 ensure the validity of sulfur credits for the duration of their useful lives.

Refiners and importers will be submitting a limited amount of proprietary information, such as batch volume and sulfur content in their annual reports. Those applying for an individual sulfur baseline for purposes of generating early credits under the ABT program, or alternate sulfur standards under the small refiner, GPA or temporary relief provisions, will be submitting additional proprietary information.

Based on EPA's experience with the RFG program, 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 will be submitted by refiners and importers for demonstrating compliance with the sulfur standards, and for establishing baseline sulfur levels under the ABT, small refiner, GPA and temporary hardship relief provisions. Confidentiality is granted for such information in accordance with the Freedom of Information Act, and EPA regulations at 40 CFR part 2.

3( g) Sensitive Questions No questions of a sensitive nature are asked in this information collection.

4. THE RESPONDENTS AND THE INFORMATION COLLECTED 4( a) Respondents/ SIC and NAIC 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 4" Sulfur FRGAS," as defined in the regulations, is gasoline produced at a foreign refinery that has been assigned an individual refinery sulfur baseline or has been granted temporary hardship relief, and that is imported into the United States. " Certified Sulfur FRGAS" is Sulfur FRGAS that the foreign refiner intends to include in the foreign refinery's sulfur compliance calculations or credit/ allotment calculations and does include in these compliance calculations when reported to EPA. " Non Certified Sulfur FRGAS" is Sulfur FRGAS that is not Certified Sulfur FRGAS. See 40 CFR 80.410( a).

13 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 ( i) Data Items 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 and/ or allotment trading program  Refiner or importer opts to use the GPA provisions  Refiner is foreign  Small foreign refiner transports Certified Sulfur FRGAS4 to U. S. by truck  Importer imports certified or Non Certified Sulfur FRGAS 5" S RGAS," as defined in the regulations, is gasoline that is subject to the small refinery standards, including Certified Sulfur FRGAS. See 40 CFR 80.210( a)

14  Importer imports Non Certified Sulfur FRGAS by truck  Refiner ( including parties who blend gasoline at a terminal facility) produces gasoline by blending blendstocks into previously certified gasoline  Refiner ( including parties who blend gasoline at a terminal facility) produces gasoline by blending butane into previously certified gasoline  Refiner qualifies for temporary relief for extreme hardship  Gasoline Distributors ( Gasoline Terminals, Pipelines, and Truckers)  Additional requirements exist for distributors of S RGAS5 and Certified Sulfur FRGAS  Gasoline retailers and wholesale purchaser consumers ( WPC)  Additional requirements exist for retailers and WPCs of exempted gasoline  Users of research and development 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 ( transfers to the end user at the retail level are exempt under certain circumstances). 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 early 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 and how the requirements under the sulfur program relate to those under the RFG program. These notes help support the identification of the new activities that will result from the requirements under the gasoline sulfur program.

( A) Broadly Applicable Requirements 15 * These 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 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.

 With one exception, records are required to be maintained for five years from the date they were created * In most cases, this requirement will 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.  For distributors, retailers and WPCs of CG, the requirement to maintain PTDs for five years is a new requirement under the sulfur program. PTDs are required to accompany the transfer of both RFG and CG to retailers and WPCs under the RFG program, but these programs require distributors, retailers and WPCs to maintain PTDs for five years only for RFG. ( This requirement begins in 2004.)  The retention of records related to the ABT credit and allotment trading programs is a new requirement. Records related to ABT credits and allotments must be kept for five years from the date of generation, except where credits or allotments 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. Early credits and allotments are required to be kept for five years from generation, use or termination, whichever is later. If early credits are transferred, both the transferor and transferee must keep related records for five years from the date of transfer, use or termination, whichever is later. As a result, in certain circumstances, records related to credits or allotments 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 and allotment transfers in the context of an enforcement action.

Beginning January 1, 2004:  The sulfur program requires persons who manufacture, import, sell, offer for sale, dispense, distribute, supply, offer for supply, store, or transport gasoline to include the following additional information in PTDs that accompany each transfer of gasoline:  PTDs that accompany the transfer of gasoline manufactured by small refiners designated as S RGAS, or Certified Sulfur FRGAS, to parties in the gasoline distribution system are required to identify the gasoline as S RGAS and designate the applicable downstream cap.  PTDs that accompany the transfer of Certified Sulfur FRGAS or Non Certified Sulfur 6 This date could be extended to no later than January 1, 2010, if hardship extensions are granted to any small refiners.

16 FRGAS are required to identify the gasoline's status as Certified or Non Certified FRGAS. This requirement does not apply after the gasoline leaves the importer's facility in the U. S. ( but note, as indicated above, Certified Sulfur FRGAS must be designated on PTDs downstream of the importer as S RGAS.)  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. * 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. * 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, 2008, gasoline which has these special classifications will no longer enter the distribution system. 6 When all of this gasoline has gone through the system and been used, the additional PTD requirements will no longer be applicable. * EPA expects that the total number of gasoline batches will not increase due to the inclusion of these additional gasoline classifications. Therefore, EPA does not anticipate that this requirement will result in an additional burden for industry due to the entry of a greater number of PTDs into the distribution system. Refiners and importers will experience an additional burden associated with adding the required information to the PTDs. Parties in the gasoline distribution chain that handle PTDs will not need to undertake any new activities due to the additional information being present on the PTDs.

 Under the sulfur program, 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 following list, the required records already must be 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 to ensure that the gasoline meets the applicable sulfur standard 17  On each occasion that gasoline is found not to be in compliance with the applicable sulfur standards, the actions taken to: 1) Stop the sale or distribution of any gasoline found not to be in compliance with the applicable sulfur standards 2) 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) * Periodic quality assurance sampling and testing is not a new requirement, however, testing for sulfur is new 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, EPA believes that no new activities for the regulated parties will result from this new requirement, since such records typically are maintained as a customary business practice.

( B) Requirements for Gasoline Refiners and Importers:

The following requirements apply to all refiners and importers. Additional and/ or alternative requirements exist for foreign refiners, for refiners and importers that utilize the small refiner, GPA, temporary relief, or ABT/ allotment trading provisions, and under certain other circumstances, as discussed in the following sections.

By November 1, 2003, or not later than three months in advance of the first date of the production or importation of gasoline, whichever is later:  The refiner or importer must register with EPA ( one time start up burden expected to be incurred by only a small number of entities not already registered) * Registration under RFG program is sufficient to satisfy this requirement. Foreign refiners whose gasoline is currently being accounted for by the importer under the RFG program are not required to register under these programs. For these foreign refiners, the registration requirement under the sulfur program would be a new requirement only if they wish to avail themselves of the early ABT credit or allotment trading programs, or if they qualify and opt to avail themselves of the small refiner or temporary hardship relief provisions. * Refiners who wish to generate early ABT credits must be registered with EPA by May 10, 2000 ( to generate ABT credits in 2000), or by September 30 of the year prior to the first year of early credit generation.

Beginning January 1, 2004:  Keep records to demonstrate compliance with the applicable per gallon sulfur cap standard * Records to demonstrate compliance with the sulfur complex model range limit requirements under the RFG program could be used to satisfy this requirement, except that the anti dumping program allows the testing of composite samples from a number of batches for CG, whereas the sulfur program requires testing on every batch. Therefore, 7Importers must exclude Certified Sulfur FRGAS from their annual average report.

18 this requirement will result in additional batch testing for CG and the retention of additional batch test reports.  Research and development ( R& D) gasoline must be identified on the PTD 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.

Beginning with the 2004 averaging period:  Calculate the corporate pool annual average sulfur level for the corporation's aggregate of all refineries and imported gasoline using batch test reports  Submit annual corporate pool averaging reports to EPA * This requirement expires after January 1, 2006, when the corporate average standards are no longer in effect. * Corporate pool annual reports are to be submitted by the last day of February following the previous year's averaging period. * The calculation of the corporate pool average sulfur values under the sulfur program is a new requirement. However, these calculations are simple, straightforward, and utilize existing data.  Include the following information in the corporate pool averaging report:  Corporate pool annual average for the averaging period  The information required in the annual averaging compliance reports for individual refineries and importers in the aggregate for all the gasoline produced and imported by the corporation during the averaging period Beginning with the 2005 averaging period:  Calculate the annual average sulfur level for each refinery or all imported gasoline  Submit annual sulfur averaging report to EPA from each refiner and importer * Annual averaging reports are to be submitted 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 will 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's7 annual average report:  EPA refiner and refinery facility, or importer registration numbers  Applicable annual average standard and applicable adjusted cap standard 19  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 and/ or allotments  For each batch of gasoline produced or imported during the averaging period:  The batch number assigned under the RFG program * If composite samples were used to represent multiple batches of CG for antidumping purposes under the RFG program, a separate batch number must be assigned to each batch included in the composite. This requirement is new under the sulfur program.  Date the batch was produced  Volume of the batch  Sulfur content of the batch * The requirement to test each batch of CG, rather than testing a composite sample of multiple batches, is new under the sulfur program as is the sample retention requirement ( i. e., to retain the most recent 20 samples collected, or each sample collected during the most recent 21 day period, whichever is greater.)  Importers exclude Certified Sulfur FRGAS  Importer reports must also include in the importer annual averaging report:  EPA refiner and refinery registration numbers of each small foreign refiner and refinery facility of Certified Sulfur FRGAS  Total gallons of Certified Sulfur FRGAS and Non Certified Sulfur FRGAS imported from each small foreign refiner * Testing of the sulfur levels of additional gasoline batches will be needed to the extent that the introduction of the new categories of Certified Sulfur FRGAS and Non Certified Sulfur FRGAS result in a greater number of distinct batches of imported gasoline. EPA believes that the total number of gasoline batches imported will not increase due to the creation of these new batch classifications. Therefore, the existence of these new classifications of gasoline batches will not result in the testing of additional batches.  Refiners and importers arrange to have an attest engagement report submitted to EPA by May 30th of each annual averaging period * The attest engagement requirement regarding reports submitted under the sulfur program is new, however, no new data will need to be collected to satisfy this requirement. 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 sulfur program requirements correctly.  Attest engagement must be performed on the underlying documentation that form the basis of any required report  The attest engagement will 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) 20  Internal auditors may assist the CPA pursuant to the Standards for Attestation Engagements  Any refiner of gasoline produced in California or importer of gasoline into California whose gasoline is used outside of California alternatively may use the sampling and testing methods approved by the state of California ( as allowed under the RFG program)

( C) Additional and/ or Alternative Requirements for Small Refiners:

The following recordkeeping and reporting requirements apply to refiners that utilize the small refiner provisions under the sulfur program: * These requirements cease to be applicable after January 1, 2008, when the small refiner program expires ( assuming no hardship extensions are granted).

By December 31, 2000:  A refiner who meets the definition of " small refiner" may submit an application to EPA for small refiner status. The application must include a calculation of the refinery's 1997 1998 sulfur baseline for purposes of determining the small refinery's applicable sulfur standards. ( One time start up burden) * The information required regarding the sulfur baseline is already available to the refiner due to the requirements of the RFG program, or has already been collected as a customary business practice. The requirement to use this information to calculate the baseline and to submit the baseline information to EPA is a new requirement under the sulfur program, however, these calculations are simple and straightforward.  The small refiner status application must include the following:  A list of the name and address of each location where any employee of the refiner worked during the 12 months preceding January 1, 1999; or, in the case of a refiner who acquires a refinery after January 1, 1999, or reactivates a refinery that was shutdown between January 1, 1998, and January 1, 1999, a listing of the name and address of each location where any employee of the refiner worked since the refiner acquired or reactivated the refinery  The average number of employees at each location based upon the number of employees for each pay period for the 12 months preceding January 1, 1999; or, in the case of a refiner who acquires a refinery after January 1, 1999, or reactivates a refinery that was shutdown between January 1, 1998, and January 1, 1999, the average number of employees at any such acquired or reactivated refinery during each calendar year since the refiner acquired or reactivated the refinery  The type of business activities carried out at each location  The total corporate crude capacity of each refinery as reported to the Energy Information Administration ( EIA) of the U. S. Department of Energy ( DOE)  A letter signed by the president, chief operating or chief executive officer of the company, or his/ her designee, stating that the information contained in the application is true to the best of his/ her knowledge  Name, address, phone number, facsimile number and E mail address of a corporate 21 contact person  For joint ventures, the total employee count includes the combined employee count of all corporate entities in the venture  For government owned refiners, the total employee count includes all government employees  The baseline calculations performed by a small refiner shall reflect only the volume and sulfur content of gasoline produced in 1997 1998  The following information for each batch of gasoline produced in 1997 1998:  Batch number assigned under the RFG program  Volume  Sulfur content  The baseline calculations performed by a small foreign refiner shall reflect only the volume and sulfur content of gasoline that was imported into the U. S. in 1997 1998  Small foreign refiners who do not have an approved baseline under the RFG program must establish a sulfur baseline in accordance with the baseline establishment provisions under the anti dumping regulations S Small refiners who wish to request an adjustment of their per gallon cap sulfur standard must submit a letter to EPA substantiating the need for this relief.

Beginning January 1, 2004, or the first date of participation in the small refiner program, whichever is later:  Small foreign refiners must classify each batch of gasoline as Sulfur FRGAS or Non Sulfur FRGAS, and each batch of gasoline classified as Sulfur FRGAS must be further classified as Certified Sulfur FRGAS or as Non Certified Sulfur FRGAS  Small foreign refiners must identify the gasoline as Certified Sulfur FRGAS or Noncertified Sulfur FRGAS on the associated PTDs * The addition of this information to PTDs is a new requirement under the sulfur program.  Small foreign refiners who have been assigned an individual sulfur baseline must designate all gasoline produced at the refinery that exports gasoline to the U. S. as either Certified Sulfur FRGAS or as Non Certified Sulfur FRGAS, except that:  Small foreign refiners may elect to classify no gasoline imported into the U. S. as Sulfur FRGAS, provided the small foreign refiner notifies EPA of the election no later than November 1 of the prior calendar year * EPA expects that no refiners will exercise this option because of the economic incentive to designate gasoline as Sulfur FRGAS. Thus, EPA expects that this provision will not result in a new activity for any refiner.

( D) Additional and/ or Alternate Requirements for Refiners and Importers Who Produce or Import Geographic Phase in Area Gasoline The following recordkeeping and reporting requirements apply to refiners and importers who produce or import gasoline designated to be used in the geographic phase in area ( GPA): 22 * These requirements will no longer be applicable after January 1, 2007, when the GPA program expires.

By December 31, 2000: Refiners and importers who wish to apply for alternate standards applicable to GPA gasoline must submit an application to EPA which includes a calculation of each refinery's or the importer's 1997 1998 sulfur baseline. * The information required to calculate the baseline is already available to the refiner or importer due to the requirements of the RFG program, or has been collected as a customary business practice. The requirement to use this information to calculate the baseline and to submit the application to EPA is new under the sulfur program. However, these calculations are simple and straightforward. The application for GPA gasoline standards must include the following:  A listing of the names and addresses of all refineries owned by the refiner for which the refiner is applying for GPA gasoline standards  The annual average gasoline sulfur baseline for gasoline produced in 1997 1998 for each refinery for which the refiner or importer is applying for GPA gasoline standards, or for all gasoline imported in 1997 1998 by the importer.  A letter signed by the president, chief operating or chief executive officer of the company, or his/ her designee, stating that the information contained in the sulfur baseline determination is true to the best of his/ her knowledge  Name, address, phone, facsimile number and E mail address of a corporate contact person  The following information for each batch of gasoline produced in 1997 1998:  Batch number assigned to the batch under the RFG program  Volume  Sulfur content ( E) Additional and/ or Alternate Requirements for Refiners and Importers who Participate in the ABT Credit or Allotment trading program The following recordkeeping and reporting requirements apply to refiners and importers who utilize the ABT or allotment trading provisions under the sulfur program:

By May 10, 2000, for credits generated in 2000, or by September 30 of the year prior to the first year in which a refiner plans to generate early ABT credits:  Refiners register with EPA if not already registered under the RFG program By September 30, 2000, for credits generated in 2000, or by September 30 of the first year in which a refiner plans to generate early ABT credits:  Refiners must submit a sulfur baseline application to EPA which includes:  A listing of the names and addresses of all refineries owned by the corporation for which the refiner is applying for a sulfur baseline 23  The annual average gasoline sulfur baseline for gasoline produced in 1997 1998 for each refinery for which the refiner is applying for a sulfur baseline  A letter signed by the president, chief operating or chief executive officer of the company, or his/ her designee, stating that the information contain in the sulfur baseline determination is true to the best of his/ her knowledge  Name, address, phone number, facsimile number and E mail address of a corporate contact person  For each batch of gasoline produced in 1997 1998:  Batch number assigned under the RFG program  Volume  Sulfur content * Existing data collected under the RFG program will be used to generate the required values.

Beginning in 2000:  Refiners calculate early ABT credits generated ( in 2003, calculate early allotments generated)  Refiners submit early ABT credit generation report to EPA ( submit early allotment generation report for 2003) * Early ABT credit or allotment generation reports are due to EPA by the last day of February of the year following generation of credits or allotments. * Reporting of credit or allotment generation will be included in the refiner's annual sulfur compliance reports beginning in 2004. * Except where indicated, the collection of the required information will not impose an additional burden because it is already required to be collected under the RFG program. However, the requirement that an additional annual early ABT credit or allotment report be submitted is new under the sulfur program. * Annual sulfur reports become mandatory for all refiners and importers beginning for the 2004 averaging year, regardless of whether they participate in the ABT credit or allotment trading program.  Include in the refiner's early ABT credit or allotment generation annual reports to EPA:  EPA refiner and refinery facility registration numbers  Applicable sulfur baseline or standard  Total volume of gasoline produced  Annual average sulfur content of gasoline produced * The collection of this information is a new requirement under the sulfur program, but the calculations rely on existing data and are simple and straightforward.  The number of credits and/ or allotments: * The collection of this information is a new requirement under the sulfur program.  Carried over from the prior averaging period  Generated  Obtained from or transferred to another party, and the name and EPA registration number of the other party to the transaction 24  Carried over to the subsequent averaging period  Converted to credits ( in the case of allotments)  Refiners generating early ABT credits or allotments retain the following records:  Batch number assigned for each batch under the RFG program * The batch number assigned under the RFG program will be used.  Volume of each batch  Production date of each batch  Location, date, time and storage tank or truck identification for each sample collected  Results of the sulfur test on each batch as originally printed or recorded, and any record of a test result that is not identical to the original test result  Calculations used to compare actual sulfur level with baseline sulfur level * These calculations are a new requirement under the sulfur program, but rely on existing data, and are simple and straightforward.  Calculations used to determine the number of credits or allotments generated  The number of credits and allotments:  Carried over from 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  Carried over to subsequent averaging period  Converted to credits ( in the case of allotments)  Contracts or other commercial documents that establish transfers of credits or allotments  A copy of all documents submitted to EPA  Records related to early ABT credits or allotments must be retained for five years from the date of generation, use or termination; if transferred, both the transferor and transferee must retain records for five years from the date of transfer, use or termination, whichever is later * These requirements could result in records being required to be retained for longer than five years in some cases.

Beginning in 2004:  Refiners and importers calculate ABT credits or allotments generated  Refiners and importers 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 and/ or allotments: * The credit and allotment information is a new requirement under the sulfur program.  Carried over from the prior averaging period  Generated  Used  Obtained from or transferred to another party, and the name and EPA refiner or 25 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  Converted to credits ( in the case of allotments) * Refinery and importer annual sulfur compliance reports are due to EPA by the last day of February of the year following the averaging period.  Refiners and importers retain the following records ( in addition to records required to be kept by all refiners and importers), separately for credits and allotments, separately by year of creation, and separately for GPA gasoline and other gasoline, pertaining to the number of credits and/ or allotments:  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  Converted to credits ( in the case of allotments)  Refiners and importers retain records related to credits and allotments 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 * These requirements could result in records being required to be retained for longer than five years in some cases. * The generation and retention of records related to compliance with the ABT credit and allotment trading provisions is a new requirement under the sulfur program.

( F) Requirements for Importers who Import Foreign Small Refiner Gasoline:

The following recordkeeping and reporting requirements apply to gasoline importers who import foreign small refiner gasoline: * These requirements will no longer be applicable after January 1, 2008, when the small refiner program expires ( assuming no hardship extensions are granted).

Beginning January 1, 2004:  Ensure that Sulfur FRGAS imported into the U. S. meets the applicable sulfur cap.  For each gasoline batch classified as Sulfur FRGAS, the importer is required to:  In the case of Non Certified Sulfur FRGAS, have an independent third party do the following:  Determine the volume of gasoline in the vessel  Use the foreign refiner's Sulfur FRGAS certification to determine the name and EPA assigned registration number of the refiner that produced the Sulfur FRGAS  Determine the name and country of registration of the vessel used to transport the Sulfur FRGAS to the U. S. 26  Determine the date and time the vessel arrived at the U. S. port of entry  In the case of Certified Sulfur FRGAS, have an independent third party also do the following:  Collect a representative sample from each vessel compartment subsequent to the vessel's arrival at the U. S. port of entry, and prior to off loading of any gasoline  Prepare a volume weighted composite sample from the samples taken from the vessel's compartments.  Determine the sulfur content by:  Having the third party test the sample, or  Having the third party observe the importer testing the sample  The importer must submit report( s) containing the required information to EPA ( and the foreign refiner if applicable) within thirty days of the date a vessel transporting the imported gasoline arrives at the U. S. port of entry. * These requirements will not require the collection of information not already available due to the requirements of the RFG program. However, the requirement that an independent third party collect this information and a report( s) be transmitted to EPA ( and the refiner, if applicable) is new under the sulfur program.

( G) 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. These alternative requirements do not apply to Certified Sulfur FRGAS. * The following requirements only apply if the importer elects to use this alternative way of demonstrating compliance. The foreign terminal must agree to satisfy the requirements ( discussed below) associated with this alternative compliance approach. These additional requirements for the terminal operator are not applicable if the importer uses an independent third party to conduct the required sampling and testing at the terminal facility. EPA expects that all importers will use an independent third party to conduct the required sampling and testing, since this will result in a reduction in the burden of compliance for both the importer and the terminal operator.  The importer must 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.  The importer must 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 an independent third party 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  As an alternative, the importer's sampling and testing requirements may be conducted 27 by an independent laboratory  The importer must treat each truck load of imported gasoline as a separate batch for purposes of assigning batch numbers, maintaining records, and reporting  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 requirement to sample and test each batch of gasoline. These additional requirements are not applicable if the importer has an independent third party conduct the required testing at the foreign terminal facility. EPA expects that this will be the case, because of the cost savings that will result for the importer as well as the foreign terminal operator. Terminal testing conducted by a third party will satisfy 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.

( H) Additional and/ or Alternative Requirements for Refiners, Pipelines, and Terminals that Produce Gasoline by Blending Blendstocks into Previously Certified Gasoline Refiners who produce gasoline by blending blendstocks into previously certified gasoline ( PCG) may satisfy the requirement to sample and test each batch of gasoline by observing the following requirements:

 Sample and test the PGC for sulfur content prior to blendstock blending and subsequent to blendstock blending  Calculate the volume and sulfur content of the blendstock by subtracting the volume and sulfur content of the PGC from the volume and sulfur content of the gasoline subsequent to blendstock blending, or  If every batch of blendstock used at a refinery during an 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 when received at the refinery to determine the volume and sulfur content, and  Treat each blendstock receipt as a separate batch for purposes of calculations to determine compliance with the applicable average annual sulfur standard  As an alternative, 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: 28  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  Testing must be performed using the regulatory method  The butane is treated as a batch ( re: sulfur content and volume) for the purpose of calculating compliance with the applicable sulfur averaging standard  The blender 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, whichever results in more frequent sampling ( I) Requirements for Pipelines and Terminals  Assure that S RGAS has the applicable sulfur content to qualify as S RGAS ( 1/ 1/ 2004  1/ 1/ 2008).

( J) Requirements for Gasoline Retailers and Wholesale Purchaser Consumers:

 If research and development ( R& D) gasoline is to be stored by a wholesale purchaserconsumer ( WPC), records must be kept to demonstrate that the WPC is associated with the facility that will be using the R& D gasoline.

 Pumps from which aviation or racing gasoline is distributed at WPCs and retailers must show a label that states the gasoline is restricted for aviation use or sanctioned racing events only. * This requirement currently exists to support exemption from EPA's gasoline detergent program. All aviation gasoline will already be in compliance with the pump labeling requirement under the gasoline detergent program, since gasoline detergent additives are not suitable for use in gasoline for aviation purposes. EPA expects all racing gasoline pumps will also be labeled to obtain an exemption from the requirements of the gasoline detergent program, since there is a substantial cost savings as a result of not needing to additize the gasoline. Thus, this pump labeling requirement under the sulfur program is not expected to result in an additional activity for industry.

 Retailers and WPCs retain PTDs which identify the aviation or racing gasoline for five years * 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 29 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. Similar to the case outlined above, EPA believes that the requirement that retailers and WPCs retain PTDs for CG under the sulfur program will result in essentially no additional burden, since the PTDs would already be maintained as a customary business practice or to comply with tax requirements.

( K) Requirements for Users of Research and Development Gasoline:

 Prior to initial use of research and development ( R& D) gasoline, an application must be submitted to EPA which contains:  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 can 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 will not result in additional reports/ applications being submitted to EPA. The information required in the R& D application under the sulfur program is also required in the similar reports required under other EPA programs, except as noted below. * 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 will be minimal.

( L) Additional and/ or Alternative Requirements for Refiners who have a Temporary Hardship Relief Exemption from Requirements The following recordkeeping and reporting requirements apply to refiners who have a temporary exemption from some or all of the sulfur program requirements due to extreme hardship situations:

By September 1, 2000: 30 Refiners who seek an exemption from requirements in extreme hardship situations must submit an application to EPA which includes a calculation of the refinery's 1997 1998 sulfur baseline. * The information required to establish the 1997 1998 baseline is already available to the refiner due to the requirements of the RFG program. The requirement to use this information to calculate the baseline and to submit a calculation of the baseline is new under the sulfur program. However, these calculations are simple and straightforward.  The refiner's application must include the following:  A plan demonstrating how the refiner will comply with the sulfur requirements, including a showing that contracts are or will be in place for engineering and construction of desulfurization equipment, a plan for applying for and obtaining any necessary permits for construction, a description of plans to obtain necessary capital and a detailed estimate of when the sulfur requirements will be met.  A detailed description of the refinery configuration and operations, including:  Portion of gasoline production that is produced using an FCC unit  Hydrotreating capacity  Reformer unit throughput capacity  Crude capacity  Crude capacity of any other refineries owned by the same entity  Volume of gasoline production  Volume of other refinery products  Geographic location( s) in which gasoline will be sold  A detailed description of efforts to obtain capital for refinery investments  The bond rating of the entity that owns the refinery.  The estimated capital investment needed to comply with the sulfur requirements by the applicable date  Any other relevant information requested by EPA  With regard to the baseline determination, the application must include:  A listing of the names and addresses of all refineries owned for which the refiner is applying for an exemption  The annual average gasoline sulfur baseline for gasoline produced in 1997 1998 for each refinery for which the refiner is applying for an exemption  A letter signed by the president, chief operating or chief executive officer of the company, or his/ her designee, stating that the information contained in the sulfur baseline determination is true to the best of his/ her knowledge  Name, address, phone number, facsimile number and E mail address of a corporate contact person  The following information for each batch of gasoline produced in 1997 1998:  Batch number assigned to the batch under the RFG program  Volume  Sulfur content  Foreign refiners who do not have an approved refinery baseline under the antidumping regulations must establish a 1997 1998 sulfur baseline in accordance with 31 the anti dumping baseline establishment requirements.

( ii) Respondent Activities As noted above, much of the information that is needed to comply with the recordkeeping requirements under this collection is already 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 already being reported to EPA to demonstrate compliance under the RFG program. The Agency has 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 regulated parties for which the sulfur requirements will result in new activities beyond familiarization with program requirements are refiners, importers, terminals, pipelines, and users of R& D gasoline. Gasoline truckers, retailers, and WPCs will not need to undertake new activities beyond becoming familiar with the requirements of the sulfur 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. A summary of these activities can be found at the end of this section. 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 and allotment trading programs) unless otherwise noted. Only new activities that would result from the implementation of the sulfur program are listed.

Several burden activities associated with this ICR were required to be completed by 2004. These activities are described and the associated burdens and costs are included in this ICR. However, since these burdens are no longer required during the period covered by this ICR renewal, they are not included in the calculations of annual burdens and costs for the period covered by this ICR.

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

( A) Activities of Gasoline Refiners and Importers Beginning in 2000:  Familiarize appropriate employees with new requirements. 32 By November 1, 2003:  Register with EPA, or not later than three months in advance of the date the refiner or importer produces or imports gasoline, whichever is later, if not already registered with EPA under the RFG program.

Beginning January 1, 2004:  Test each batch of CG 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 earlier, the RFG program allows testing on composite samples taken from multiple CG batches. Therefore, this requirement will require testing of additional batches of CG for their sulfur content ( and the retention of additional test reports and CG batch samples), but will not require additional samples to be taken.

 Conduct a QA periodic sampling and testing program for sulfur content for defense purposes Beginning with the 2004 averaging period:  Calculate the corporate pool average sulfur level from batch test reports.  Submit a corporate pool annual sulfur averaging report to EPA. * This requirement expires after January 1, 2006, when the corporate pool average standards are no longer in effect. * Annual reports are to be submitted by the last day of February following the previous year's averaging period.  As discussed in a later section, refiners and importers who utilize the ABT credit and allotment trading provisions are required to collect information related to credits activity  As discussed in a later section on the activities of importers who import small refiner gasoline, additional information from the foreign refiner that supplies the gasoline to the importer is required.  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.

Beginning January 1, 2005:  Calculate the average annual sulfur level of each refinery, or all imported gasoline, using batch test reports Beginning with the 2005 averaging period:  Submit refinery and importer annual averaging reports to EPA * Refinery and importer annual averaging reports must be submitted by the last day of 33 February of the year following the prior year's averaging period. * A refiner's annual sulfur report for the 2005 averaging period must include both the corporation's production for all refineries ( and imported gasoline) to demonstrate compliance with the corporate pool average standard, and the refiner's production for each refinery that produced gasoline during the averaging period to demonstrate compliance with the refinery annual average standard.

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

* These requirements are new under the sulfur program, but only apply if the refiner elects to participate in the small refiner program. These requirements will cease to be applicable after the expiration of the small refiner provisions on January 1, 2008 ( assuming no hardship extensions are granted).

By December 31, 2000:  Register with EPA if not already registered under the RFG program and submit applications for small refiner status, including 1997 1998 sulfur baseline data * The information required regarding the sulfur baseline is already available to the refiner due to the requirements of the RFG program, or has been collected as a customary business practice.

By January 1, 2003:

S Small refiners who wish to request an adjustment of their per gallon cap sulfur standard must submit a letter to EPA which includes specified information relating to the need for such relief.

Beginning January 1, 2004, or not later than three months in advance of the first date of the production of gasoline, whichever is later, perform the following activities:  For transfers of gasoline with a small refiner designation, identify the gasoline as small refiner gasoline ( S RGAS) and indicate the downstream sulfur standard on PTDs. * Since some small refiner gasoline will still be in the distribution system for a period after January 1, 2008, the PTD provisions will remain in effect as long as this gasoline remains in the gasoline distribution system.  For a small foreign refinery that has been assigned an individual sulfur baseline, generate PTDs for all gasoline that is exported to the U. S. which identify the gasoline as either Certified Sulfur FRGAS or Non Certified Sulfur FRGAS, except that:  The foreign refiner may elect to classify no gasoline imported into the U. S. as Sulfur FRGAS, provided that the refiner notify EPA no later than November 1 of the prior calendar year * EPA expects that no refiners will exercise this option, because of the economic incentive to designate gasoline as Sulfur FRGAS. Thus, EPA expects that this provision will not result in a new activity for any refiner.  Notify EPA if refiner wishes to withdrawal small refiner status. Upon notice to EPA, 34 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 Who Participate in the ABT Credit and/ or Allotment Trading Program * These requirements are new under the sulfur program, but only apply if a refiner or importer elects to participate in the ABT credit and/ or allotment trading programs.

Beginning January 1, 2000:  Keep records pertaining to the generation of any early ABT credits generated during the 2000 through 2003 annual averaging periods.

By May 10, 2000:  Register with EPA if generating early credits in 2000, or by September 30 of the year prior to the 1st year of early credit generation, if not already registered with EPA under the RFG program.

By September 30, 2000:  Submit a sulfur baseline application to EPA if early credits are to be generated in 2000, or by September 30 of the first year in which early credits are generated Beginning with the 2000 averaging period, or the first year of participation in the ABT credit and/ or allotment trading program, whichever is earlier, a refiner who generates, uses, or transfers ABT credits, or a refiner or importer who generates, uses, or transfers allotments must:  Submit an annual sulfur averaging report to EPA: * The requirement to submit a sulfur report is mandatory for all refiners and importers beginning in the 2004 averaging period to demonstrate compliance with the corporate pool average standards, and beginning in 2005, to demonstrate compliance with the refinery or importer annual average standards, regardless of their participation in the ABT credit and/ or allotment trading program.  The following new information is required to be collected to complete the report:  The credits or allotments 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 and allotment activity * Records related to ABT credits and allotments must typically be kept for five years. When sulfur credits are transferred, the related 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. Early credits must be kept for five years from the date of generation, use or termination of the credits. Where early credits are 35 transferred, both the transferor and transferee must keep related records for five years from the date of transfer, use or termination, whichever is later. As a result, under certain circumstances, records could be required to be kept for longer than five years. * The retention of such records is a new requirement.  Test each batch of gasoline for sulfur content, and retain records of this testing * Test results obtained under the RFG program, including test results of CG composite samples, fulfill this requirement for early credit/ allotment generation.

( D) Activities of Importers That Import Foreign Small Refiner Gasoline:

Beginning January 1, 2004: * These requirements cease to be applicable after the expiration of the small refiner provisions on January 1, 2008 ( assuming no hardship extensions are granted). * These requirements will not require the collection of information not already available due to the requirements of the RFG program. However, the requirement that an independent third party collect this information and that report( s) be transmitted to EPA ( and the refiner if applicable) is new under the sulfur program.  For each gasoline batch classified as Sulfur FRGAS, perform the following:  Have an independent third party compile the required information and prepare a report for submission to EPA  For each batch classified as Certified Sulfur FRGAS, perform the following:  Have an independent third party compile the required information and prepare a report for submission to EPA and the appropriate foreign refiner  Identify Certified Sulfur FRGAS as S RGAS on PTDs.

( E) Activities of Refiners and Importers of Geographic Phase In Area ( GPA) Gasoline By December 31, 2000:  Submit an application to EPA which includes the refinery's or importer's 1997 1998 sulfur baseline data * This is a new requirement under the sulfur program, but only applies if the refiner or importer elects to use this alternative for demonstrating compliance with gasoline sold in the GPA.

Beginning January 1, 2004:  Submit annual sulfur averaging reports to EPA for GPA gasoline. * Refiners and importers who produce or import 50% or more of their gasoline for use in the GPA are not subject to the corporate pool average standards, and, as a result, are not required to submit corporate pool annual averaging reports. However, refiners and importers who produce or import less than 50% of their gasoline for use in the GPA are subject to the corporate pool average standards and must submit sulfur corporate pool averaging reports beginning in 2004. 36 ( F) Activities of Refiners who are Exempt from Requirements for Extreme Hardship By September 1, 2000:  Submit applications for temporary relief from requirements due to extreme hardship, including 1997 1998 sulfur baseline data * This is a new requirement under the sulfur program, but only applies if the refiner elects to apply for relief from some or all of the sulfur requirements due to extreme hardship situations.

( G) 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 that is otherwise applicable:  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 a QA 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. * These alternative requirements would not be applicable to Certified Sulfur FRGAS. * EPA expects that importers will satisfy the sampling and testing requirement by contracting with an independent third party to perform the required sampling and testing at the terminal( s) from which the gasoline is drawn.

( H) Alternative Activities for Refiners, Terminals, and Pipelines That Produce Gasoline by Blending Blendstocks into Previously Certified Gasoline:

As an alternative to the requirement to sample and test each batch of gasoline, refiners who produce gasoline by blending blendstocks into previously certified gasoline may use the following blendstock accounting procedures:

 Calculate the volume and sulfur content of the blendstock by subtracting the volume and sulfur content of the base gasoline before blending from the volume and sulfur content of the gasoline subsequent to the addition of the blendstock  If every batch of blendstock used at a refinery during an averaging period has a sulfur content that is equal to, or less than, the applicable per gallon cap standard:  Each batch of blendstock may be sampled and tested when received at the refinery to determine the volume and sulfur content, and  Each blendstock receipt may be treated as a separate batch for purposes of 37 calculations to determine compliance with the applicable average annual sulfur standard * The required blendstock information is available as customary business practice. * The required calculations is a new activity under the sulfur program.

 For refiner/ blenders who blend only butane into PCG, use sulfur test results from the butane supplier 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 ( re 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 pergallon 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, whichever results in more frequent sampling.

( I) Activities of Pipelines and Terminals Beginning in 2000:  Familiarize appropriate employees with new requirements Beginning in 2004:  Conduct periodic QA assurance testing for sulfur content for defense purposes  Conduct sampling and testing of gasoline designated as S RGAS ( J) Activities of Users of Research and Development Gasoline:

Beginning in 2000:  Familiarize appropriate employees with new requirements  Prior to initial use of R& D gasoline, submit an application to EPA * A report currently must be submitted to obtain an exemption for R& D gasoline under EPA's gasoline detergent program. A similar requirement exists under EPA's gasoline volatility program. The application for exemption under the sulfur program could be combined with the report already submitted to gain exemptions under these existing EPA programs. Therefore, the R& D gasoline exemption application requirement under the sulfur program is not expected to result in additional reports/ applications being submitted to EPA. Most of the information required in the R& D application under the sulfur program is also required in the similar reports required under other EPA programs.  The following new information will need to be provided on the application:  An explanation of why sulfur compliant gasoline can not be used in the R& D 38 program ( K) Activities of Carriers, Retailers, and WPCs Beginning in 2000:  Familiarize appropriate employees with the new requirements  WPCs identify any R& D gasoline ( L) Summary of New Activities that Result from the Requirements of the Sulfur Program The new activities listed for a broad group of respondents ( e. g., refiners and importers) also apply to respondent sub groups ( e. g., small refiners). The date when these activities must first be performed is noted.

Gasoline Refiners and Importers: * Activities for foreign refiners end 1/ 1/ 2008, when all accounting would be undertaken by the importer. Before this time, the only requirements for foreign refiners that result in new activities are those associated with the small refiner, early credit generation, and temporary hardship relief provisions. 1) Familiarize appropriate employees with the new requirements ( 2000). 2) Register with EPA if not already registered ( by November 1, 2003, or not later than three months in advance of the date the refinery or importer produces or imports gasoline, whichever is later.) 3) Test each batch of conventional gasoline for sulfur content and maintain records and a batch sample from these tests ( 1/ 1/ 2004 and beyond). 4) Conduct Q/ A periodic sampling and testing for sulfur for defense purposes ( 1/ 1/ 2004 and beyond). 5) Submit annual corporate pool sulfur averaging report to EPA ( 2/ 2005; 2/ 2006).  Calculate average annual sulfur level using existing data for the corporate gasoline pool 6) Submit annual refinery and/ or importer annual averaging reports to EPA ( 2/ 2006 and beyond).  Calculate average annual sulfur level using existing data for each refinery and/ or for all imported gasoline 7) Arrange for sulfur attest engagement report to be submitted to EPA ( 5/ 30/ 2005 and beyond). * Independent third party drafts report using existing data.

Small Refiners: * These activities end after the small refiner program expires on 1/ 1/ 2008 ( assuming no hardship extensions are granted). 1) Submit small refiner status application to EPA including individual refinery sulfur baseline information ( by 12/ 31/ 2000). 39 2) Perform calculations using existing data to support determination of baseline. 3) Place applicable small refiner gasoline designation and applicable downstream sulfur standard on PTDs ( as early as 1/ 1/ 2004, depending on when refiner begins producing small refiner gasoline). 4) Notify EPA if refiner wishes to withdraw small refiner status. 5) For small refiners who wish to request an adjustment of their per gallon cap sulfur standard, submit a letter to EPA substantiating the need for such relief ( by 1/ 1/ 2003).

Refiners and Importers of GPA Gasoline: * These activities end after the GPA program expires on 1/ 1/ 2007. 1) Submit GPA gasoline application including individual refinery or importer sulfur baseline information ( by 12/ 31/ 2000). 2) Perform calculations using existing data to support determination of baseline. 3) Submit separate annual averaging refinery reports for GPA gasoline ( beginning 1/ 1/ 2004). 4) Place applicable GPA gasoline designation on PTDs( beginning 1/ 1/ 2004).

Refiners Seeking a Temporary Exemption from Requirements for Extreme Hardship: 1) Submit application including individual refinery sulfur baseline information and required information to demonstrate extreme hardship ( by 9/ 1/ 2000). 2) Perform calculations using existing data to support determination of baseline.

Refiners and Importers Who Participate in the ABT Credit and/ or Allotment Trading Program: 1) Submit sulfur baseline information to EPA for purposes of generating early ABT credits ( 9/ 30/ 2000). 2) Comply early with requirement to submit annual sulfur averaging report to EPA ( February 28, 2001, or last day of February following the first year of participation in ABT credit or allotment trading program, whichever is later). 3) Keep records on ABT credit and/ or allotment trading program activity and include this information in annual sulfur average report.

Importers that Import Small Foreign Refiner Gasoline: ( Beginning 1/ 1/ 2004) * These activities end after the small refiner program expires on 1/ 1/ 2008 ( assuming no hardship extensions are granted). 1) For each batch of Sulfur FRGAS, have an independent third party compile the required information ( which is available due to the need to comply with other EPA programs, or as customary business practice) and submit a report to EPA. 2) For each batch of Certified Sulfur FRGAS have an independent third party compile the required information ( which is available due to the need to comply with other EPA programs, or as customary business practice) and submit a report to EPA and the refiner that is the source of the subject gasoline batch. 40 Alternative Activities for Refiners, Terminals, and Pipelines that Produce Gasoline by Blending Blendstocks into Previously Certified Gasoline: ( Beginning 1/ 1/ 2004) As an alternative to the requirement to sample and test each batch of gasoline the refiner may: 1) Use alternative blendstock accounting procedures and perform associated calculations ( that rely on existing data) to demonstrate compliance ( available only if each batch of blendstock has a sulfur level below the applicable per gallon cap standard.) 2) If the only blendstock used by the refiner is butane ( and provided sulfur content of the butane does not exceed a specified value), the refiner may use test results from the butane supplier to demonstrate compliance.  If this option is used the refiner must conduct a QA program that includes sampling and testing of the sulfur content from each butane supplier  The frequency of this required additional sampling and testing would be once for every 500,000 gallons of butane received ( from each butane supplier), or one sample every 3 months, whichever is more frequent Alternative Activities for Importers that Import Non Certified FRGAS by Truck ( to demonstrate the requirement to sample and test each gasoline batch): ( Beginning 1/ 1/ 2004) 1) Obtain sulfur test results from the foreign terminal. 2) Have an independent third party perform the required sampling and testing at each terminal from which the importer draws gasoline.

Activities of Terminals and Pipelines: 1) Familiarize appropriate employees with new requirements ( 2000). 2) Conduct a QA program of periodic testing for sulfur content ( 1/ 1/ 2004 and beyond). 3) Comply with requirements for blenders of butane into previously certified gasoline ( 1/ 1/ 2004 and beyond).

Activities of Gasoline Carriers, Retailers Wholesale Purchaser Consumers: 1) Familiarize appropriate employees with new requirements ( 2000).

Activities of Users of Research and Development Gasoline: 1) Familiarize appropriate employees with the new requirements ( 2000). 2) Add information to application for R& D exemption from EPA requirements ( e. g. RFG program, gasoline detergents program, and sulfur program) specific to why sulfurcompliant gasoline can not be used. ( 1/ 1/ 2004)

5. THE INFORMATION COLLECTED AGENCY ACTIVITIES, COLLECTION METHODOLOGY, AND INFORMATION MANAGEMENT 5( a) Agency Activities 41 Agency activities associated with the annual reporting requirements of this information collection consist of the following:

1) Set up a database to manage the data contained in refiner and importer annual reports with regard to the proposed sulfur requirements; 2) Answer respondent questions; 3) Review submitted reports ( includes associated Agency inspections and investigations); 4) Enter data from the reports into the database; 5) Analyze requests for confidentiality and provide appropriate protection; 6) 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) Prepare appropriate storage space for submittals; 2) Review submitted reports ( includes associated Agency inspections and investigations); 3) Store the data and archive according to a record retention schedule conforming to EPA policy.

Agency activities associated with reviewing the ABT baseline submittals of this information collection consist of the following:

1) Prepare appropriate storage space for submittals; 2) Analyze requests for confidentiality and provide appropriate protection; 3) Review submittals ( includes associated Agency inspections and investigations); 4) Notify refiners within 60 days of receipt of application of approval or of any deficiencies in the submittal.

Agency activities associated with reviewing the small refiner status applications and baseline submittals of this information collection consist of the following:

1) Prepare appropriate storage space for submittals; 2) Analyze requests for confidentiality and provide appropriate protection; 3) Review applications and baseline submittals ( includes associated Agency inspections and investigations); 4) Notify refiners of approval or disapproval via letter.

Agency activities associated with reviewing the small refiner hardship extension applications of this information collection consist of the following:

1) Prepare appropriate storage space for application; 2) Analyze requests for confidentiality and provide appropriate protection; 42 3) Review applications ( includes associated Agency inspections and investigations); 4) Notify refiners of approval or disapproval via letter.

Agency activities associated with reviewing requests for an adjustment to the small refiner per gallon cap sulfur standard consist of the following:

1) Review requests; 2) Provide appropriate protection for confidentiality; 3) Notify refiner of approval or disapproval of request.

Agency activities associated with reviewing the geographic phase in area ( GPA) applications of this information collection consist of the following:

1) Prepare appropriate storage space for application; 2) Analyze requests for confidentiality and provide appropriate protection; 3) Review applications ( includes associated Agency inspections and investigations); 4) Notify refiners and importers of GPA gasoline standards via letter.

Agency activities associated with reviewing the temporary hardship relief applications of this information collection consist of the following: 1) Prepare appropriate storage space for submittals; 2) Analyze requests for confidentiality and provide appropriate protection; 3) Review submittals ( includes associated Agency inspections and investigations); 4) Notify refiners of approval or disapproval via letter.

5( b) Collection Methodology and Management The collection methodology and management of the information collected will be 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; i. e., via telefax or computer interface, but written certification of accuracy would be necessary. It is possible that electronic transfer via computer interface may require development of new, or modification of existing, software.

When the submittal is received, EPA will review it for completeness and, as appropriate, enter the data into a database which will be incorporated into the existing database for the RFG program or appropriately store baseline or hardship submittals. 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 43 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 sulfur rule and the specific provisions for qualifying small refiners. The panel did not recommend a wholesale exemption for small refiners, but rather that they be provided additional time to comply. EPA's small refiner provisions provide interim standards for each small refiner, which are less stringent than the standards applicable in general to refiners and importers, while delaying compliance with the national standards for several years ( even beyond the phase in period applicable in general to refiners and importers). A provision to provide on a case by case basis hardship extensions to small refiners is also included in the sulfur rule.

Also as discussed in Section 3( c) above, the sulfur program provides for 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 sulfur program provides for temporary relief from the sulfur requirements for refiners who can demonstrate that extreme hardship would result in the absence of such relief.

The small refiner, GPA and temporary hardship relief provisions necessitate many of the information collection requirements in this request, namely the small refiner, GPA gasoline, and temporary hardship relief applications and the associated baseline submittals ( in addition to the annual reporting and attest engagement requirements of all refiners and importers). EPA does not believe these additional reporting requirements will be a burden to those refiners who are eligible and choose to participate in these programs because of the relief these programs provide them due to delayed and relaxed standards.

The information, namely the small refiner, GPA and temporary hardship relief applications and associated baseline submittals are the absolute minimum needed to effectively conduct and maintain the integrity of the sulfur program. Further measures to simplify reporting for these parties do not appear prudent or necessary.

A Regulatory Impact Analysis ( RIA) has been placed in the rulemaking docket which further discusses the measures taken to minimize the impact on small business entities.

5( d) Collection Schedule The collection schedule of the sulfur program reporting requirements is shown in Table 5( d). 44 Table 5( d). Collection Schedule Item Due Date Registration for early credit generation ( if not already registered under the RFG program) May 10, 2000, if generating early credits in 2000, or September 30 of the year prior to the first year of early credit generation Applications for temporary hardship relief September 1, 2000 ABT baseline submissions September 30, 2000, or September 30 of the first year early credits are generated Applications for small refiner status ( and baseline submission) and GPA gasoline standards ( and baseline submission) Request for adjustment of per gallon cap standard December 31, 2000 January 1, 2003 ABT 2001 2003 credit generation annual reports/ allotment 2003 generation annual report Last day of February following the previous year's averaging period for early ABT credit reports/ last day of February, 2004, for early allotment report Registration by all refiners and importers who are not registered with EPA under the RFG program November 1, 2003 Per gallon and corporate pool averaging reports, including ABT information Last day of February following the previous year's averaging period ( beginning February 28, 2005, for the 2004 averaging period)

Refinery and importer annual averaging reports, including ABT information Last day of February following the previous year's averaging period ( beginning February 28, 2006, for the 2005 averaging period)

Attest reports May 30 following the previous year's averaging period Small refiner progress reports June 1, 2004, 2004, 2006 Applications for small refiner hardship extensions January 1, 2007 6. ESTIMATING THE ANNUAL BURDEN AND COST OF THE COLLECTION Estimates of the annual hourly burden and cost for the following groups of respondents are provided:

 Gasoline Refiners  Gasoline Importers  Gasoline Pipelines  Gasoline Terminals  Gasoline Truckers  Gasoline Retailers and Wholesale Purchaser Consumers  Users of Research and Development Gasoline 45  Gasoline Refiners  Gasoline Importers  Gasoline Pipelines  Gasoline Terminals  Gasoline Truckers  Gasoline Retailers and Wholesale Purchaser Consumers  Users of Research and Development Gasoline 6( a) Estimating Respondent Burden The estimated hourly burdens for the early years of the gasoline sulfur program for the various parties are contained in Tables 6( a) 1 and 6( a) 2. The estimated hourly burdens for subsequent years ( 2004 and beyond) are contained in Tables 6( a) 3 and 6( a) 4. The accounting assumptions made in making the estimates of annual hourly burden and cost are summarized after the following tables on respondent hourly burdens. 46 Table 6( a). 1: Annual Hourly Burden for Gasoline Refiners and Importers  Early Years of the Program( to January 1, 2004)

Collection Activity Annual Burden Hours per Respondent Frequency Total Annual Burden Hours ( per respondent) Managerial ($ 77/ hour) Technical ($ 39/ hour) Clerical ($ 39/ hour)

1) Familiarize Employees with New Requirements: Refiners Importers 0.67 0.67 1.67 0.33 3.33 1 11 11 5.67 2 2) Submit Baseline Application for ABT Program ( refiners only) 0 0.33 0.67 11 1 3) Submit Early Credit Sulfur Averaging Report ( refiners only) 0.25 0.25 2 1 2.5 4) Registration2 0.083 0 0.167 11 0.25 5) Small Refiner Application ( including baseline submission) 0.33 0.33 0.67 11 1.33 6) GPA Application ( including baseline submission) ( refiners and importers) 0.33 0.33 0.67 11 1.33 7) Temporary Hardship Relief Application ( including baseline submission) ( refiners only) 0.33 0.33 0.67 11 1.33 8) Request for Adjustment of Small Refiner Per gallon Cap Standard 0.17 0.17 0.33 11 0.67 1) The total burden for this one time activity was divided by three to reflect the distribution of the burden over the three year period covered by this ICR. 2) Only applies if party is not already registered with EPA under the RFG program. 47 Table 6( a). 2: Annual Hourly Burden for Gasoline Terminals, Pipelines, Truckers, Retailers and Wholesale Purchaser Consumers ( WPCs), and Users of Research and Development ( R& D) Gasoline  Early Years of the Program ( to January 1, 2004)

Collection Activity1 Annual Burden Hours per Respondent Frequency2 Total Annual Burden Hours ( per respondent Managerial3 Technical3 Clerical3 Familiarize Employees with New Requirements 1) Terminals 0.083 ($ 77/ hour) 0.67 ( 35$/ hour) 0.67 ( 25$/ hour) 1 1.42 2) Pipelines 0.083 ($ 77/ hour) 0.67 ( 35$/ hour) 0.67 ( 25$/ hour) 1 1.42 3) Truckers 0.083 ($ 77/ hour) 0 ( 35$/ hour) 0.33 ( 25$/ hour) 1 0.42 4) Retailers and WPCs 0 ($ 35/ hour) 0.017 ( 15$/ hour) 0.017 ( 15$/ hour) 1 0.034 5) Users of R& D Gasoline 0.083 ( 77$/ hour) 0.083 ( 39$/ hour) 0 ( 25$/ hour) 1 0.17 1) Within the three year time span covered by this ICR the activity of these regulated parties is limited to familiarization with the new requirements. 2) This is a one time activity. The total burden for this one time activity was divided by three to arrive at the above estimates, to reflect the distribution of the burden over the three year period covered by this ICR. 3) The hourly labor cost varies by respondent as shown. 48 Table 6( a). 3: Annual Hourly Burden for Gasoline Refiners and Importers  Subsequent Years of the Program ( 2004 and beyond)

Collection Activity Annual Burden Hours per Response Number of Responses per Respondent per Year Total Annual Burden Hours ( per respondent)

Managerial ($ 94/ hr) Technical ($ 64/ hr) Clerical ($ 41/ hr) Contractor Equivalent 1) Annual corporate pool averaging report: Refiners Importers 0.25 0.25 0 0 0.75 0.75 0 0 1 1 1.0 1.0 2) 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 3) ABT credit and/ or allotment trading report 0.25 0.25 0.25 0 1 0.75 4) 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 5) Alternative sampling/ testing: PCG Butane 0 0 0.5 0.25 0.5 0.5 0 0 40 5 40 3.75 6) Small refiners: PTDs Reporting 0 0 1.0 0 1.0 0.5 0 0 1 1 2.0 0.5 7) GPA refiners: PTDs Reporting 0 0 1.0 0 1.0 0.5 0 0 1 1 2.0 0.5 8) Separate annual averaging report for temporary hardship 0 0 0.5 0 1 0.5 9) Alternative sampling/ testing for truck importers 0 0.25 0.75 0 12 12 10) Importers independent lab reports for S FRGAS 0 0.5 0.5 0 12 12 11) Attest engagements: Refineries Importers 0 0 5 5 0 0 0 0 1 1 5 5 12) 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. 49 Table 6( a). 4: Annual Hourly Burden for Gasoline Terminals, Pipelines and Users of Research and Development ( R& D) Gasoline  Subsequent Years of the Program ( 2004 and beyond)

Collection Activity Annual Burden Hours per Respondent Number of Responses per Respondent per Year Total Annual Burden Hours ( per Respondent) Managerial ($ 94/ hr) Technical ($ 64) Clerical ($ 41) Contractor Equivalent ($ 40/ hr  field test)

Q/ A 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 accounting assumptions made in making the hourly burden and cost estimates for respondents are discussed below.

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 are newly required under the sulfur rule ( Section 4( b)( ii)), the selection of the respondent classes ( Section 6( a)), and the following accounting assumptions.

These assumptions are based partially on EPA's experience with its RFG program reporting, lead phase down reporting, Energy Information Administration reports, census information, the Stalsby/ Wilson petroleum terminal encyclopedia, the National Petroleum News Fact Book, Modern Bulk Transporter Magazine, and EPA's experience in enforcing fuels provisions of the Clean Air Act and regulations promulgated thereunder.

Accounting Assumptions that Pertain to Labor Costs:

1) The cost of managerial time is $ 77/ hour for activities required during the early years of the program, adjusted to $ 94/ hour for activities required during subsequent years ( 2004 and beyond).

2) The cost of junior professional/ technician time is $ 39/ hour for activities required during the early years of the program, adjusted to $ 64/ hour for activities required during subsequent years ( 2004 and beyond). 50 3) The cost of clerical time is $ 39/ hour for activities required during the early years of the program, adjusted to $ 41/ hour for activities required during subsequent years ( 2004 and beyond).

The following sources were used in estimating the above labor costs:  For the cost of managerial and clerical employee activity, the Comprehensive Assessment and Information Rule ( CAIR), the Selective Enforcement Audit ICR, the National Low Emission Vehicle ICR, and the U. S. Bureau of Labor Statistics Employment Cost Index ( ECI).  For the cost of technical employee activity, the U. S. Department of Industry Wage Survey. * Overhead and other associated costs as well as inflation were accounted for.  An hourly equivalent rate of $ 74 was assumed for independent laboratory testing and $ 40 for field testing for sulfur.

Accounting Assumptions that Pertain to the Activities Required Under the Sulfur Rule during the Early Years of the Program ( adjusted in some cases for subsequent years of the program):