Supporting Statement for Information Collection Request Recordkeeping and Reporting Requirements for the Fuel Quality Regulations for Diesel Fuel Sold in 2001 and Later Years EPA ICR 1718.04 May 2001 Transportation and Regional Programs Division Office of Transportation and Air Quality U. S. Environmental Protection Agency 1 1. IDENTIFICATION OF THE INFORMATION COLLECTION 1( a) Title Of The Information Collection ICR: Recordkeeping and Reporting Requirements for the Fuel Quality Regulations for Diesel Fuel Sold in 2001 and Later Years OMB Control Number: 2060 0308 1( b) Short Characterization/ Abstract The pollution emitted by diesel engines contributes greatly to our nation's continuing air quality problems. On January 18, 2001, EPA published a final rule that would establish standards for heavy duty engines and vehicles and for highway diesel sulfur control. New emissions standards for these engines and vehicles will apply starting with model year 2007. Since the new technology developed will require low sulfur diesel fuel ( 15 ppm sulfur or less), the regulations require the availability of this fuel starting by no later than 2006, with all highway diesel fuel required to meet the 15 ppm standard by 2010. See " Control of Air Pollution from New Motor Vehicles: Heavy Duty Engine and Vehicle Standards and Highway Diesel Fuel Sulfur Control Requirements," 66 FR 5002 ( January 18, 2001).

The diesel sulfur rule contains many types of flexibility aimed at reducing burdens on small businesses and those faced with particular hardships.

All refiners producing highway diesel fuel and all importers are able to take advantage of the temporary compliance option offered in the final regulations at 40 CFR § 80.530. This option would generally permit the refiner or importer to continue to produce or import fuel meeting a 500 ppm sulfur standard until May 31, 2010 through the use of marketable credits.

Diesel producers who market gasoline in the geographic phase in area defined in the gasoline sulfur regulations may receive additional flexibility under this diesel fuel program ( see 40 CFR § § 80.217 and 80.540). Refiners that seek and are granted small refiner status may have their choice of three options:

500 ppm option. A small refiner may continue to produce and sell diesel fuel meeting the 500 ppm sulfur standard for four additional years, i. e., until June 1, 2010, provided that it reasonably ensures the existence of sufficient 2 volumes of 15 ppm fuel in the marketing area( s) that it serves.

Small refiner credit option. A small refiner that chooses to produce 15 ppm fuel prior to June 1, 2010 may generate and sell credits under the broader temporary compliance option. Since a small refiner has no requirement to produce 15 ppm fuel under this option, any fuel it produced below 15 ppm sulfur would qualify for generating credits.

Diesel/ gasoline compliance date option. For small refiners that are also subject to the gasoline sulfur program ( see 40 CFR subpart H), the refiner may choose to extend the duration of its applicable interim gasoline standards by three years, provided that it produces all of its highway diesel fuel at 15 ppm sulfur beginning on June 1, 2006.

In addition, exemptions are possible for research and development purposes. The specific recordkeeping and reporting requirements for this program, and associated flexibilities, are discussed below. For a more detailed description of the diesel program, please refer to the January 18, 2001 Federal Register notice.

This Information Collection Request ( ICR) would make ICR additions to the existing fuels regulations applicable to diesel fuel under ICR number 1718.02, which expires July 31, 2001. ( ICR number 1718.03 has been reserved for its renewal.) The additional requirements covered under this ICR were included in the final rule published in the Federal Register on January 18, 2001. Although the rule becomes effective on March 19, 2001, the first maintenance and/ or collection of information under this rule is not required until the generation of early credits, if any, starting as early as June 1, 2001. ( For a discussion of early credits and other information related items, please refer the discussion below.)

The information under this ICR will be collected by EPA's Transportation and Regional Programs Division, Office of Transportation and Air Quality, Office of Air and Radiation ( OAR), and by EPA's Air Enforcement Division, Office of Regulatory Enforcement, Office of Enforcement and Compliance Assurance ( OECA). The information collected will be used by EPA to evaluate compliance with diesel sulfur control requirements under the diesel rule. This oversight by EPA is necessary to ensure attainment of the air quality goals of the diesel program.

The scope of the recordkeeping and reporting requirements for each type of party ( e. g., refiners, marketers, or retailers 3 of diesel), and therefore the cost to that party, reflects the party's opportunity to create, control or alter the sulfur content of diesel fuel. As a result, refiners and importers will generally have more requirements than parties downstream from the diesel production or import point, such as retailers. EPA has made every effort to minimize recordkeeping and reporting burdens and to ensure that parties do not have to submit duplicate information. For example, a refiner or importer who has already registered under the reformulated gasoline and anti dumping program ( ICR number 1591.13, OMB control number 2060 0277) is not required to resubmit the same information for purposes of this program.

It is estimated that there will be 48,690 reports, 72,648 burden hours, and total costs ( labor, overhead and maintenance, purchased services, and annualized capital costs) of $ 9,208,880. This figure includes the initial burden associated with learning and adapting to the new requirements.

2. NEED FOR AND USE OF THE COLLECTION 2( a) Need/ Authority For The Collection EPA issued a final rule establishing a comprehensive national control program that will regulate the heavy duty vehicle and its fuel as a single system. As part of this program, new emissions standards will begin to take effect in model year 2007, and will apply to heavy duty highway engines and vehicles. These standards are based on the use of highefficiency catalytic exhaust emission control devices or comparably effective advanced technologies. Because these devices are damaged by sulfur, we are also reducing the level of sulfur in highway diesel fuel significantly by mid 2006. The program provides substantial flexibility for refiners, especially small refiners, and for manufacturers of engines and vehicles. These options will ensure that there is widespread availability and supply of the low sulfur diesel fuel from the very beginning of the program and that high sulfur and low sulfur fuels are segregated at all points in the distribution system. This rule also provides for exemptions, upon application, for research, development, and testing purposes.

This supporting statement describes the recordkeeping and reporting requirements and the associated costs to various parties ( e. g., refiners, importers, distributors, and retailers 4 of diesel fuel). These requirements are necessary to enable the Administrator to:

( 1) Identify the sources of diesel fuel; and ( 2) Ensure that these sources comply with the standards and limitations of the rules.

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

Sections 114 and 208 of the Clean Air Act ( CAA), 42 U. S. C. § § 7414 and 7542, authorize EPA to require recordkeeping and reporting regarding enforcement of the provisions of Title II of the CAA. Relevant portions of the statutes referenced above can be found in the Attachment. The current regulations applicable to motor vehicle diesel fuel can be found in 40 CFR Part 80, Regulation of Fuels and Fuel Additives. The regulations associated with this information collection are contained in the final rule for the diesel rulemaking. These regulations are not attached to this statement due to their length and general technical nature. The final rule was published in the Federal Register on January 18, 2001. ( 66 FR 5002.)

2( b) Practical Utility/ Users of the Data EPA will use the information contained in the annual reports required by this information collection to evaluate the compliance of parties involved in the production and importation of diesel with the motor vehicle diesel fuel requirements. These reports will also be used by EPA to target compliance investigations. Any baseline information submitted by refiners in order to generate early credits will be used to ensure that credits generated are correctly determined. PTDs maintained by parties in the diesel fuel distribution system and records related to diesel blending will be used to evaluate the compliance of the parties that maintain the records, and to help evaluate upstream compliance.

3. NONDUPLICATION, CONSULTATIONS, AND OTHER COLLECTION CRITERIA 3( a) Nonduplication 5 Efforts have been made to eliminate duplication in this information collection. Where possible, information requirements from various organizations within the Agency have been combined to minimize the submittal of duplicate information in different formats. The information in this collection will not be available from another source.

To minimize the information collection burden, refiners and importers who are registered under the RFG program ( 40 CFR 80.76) are considered to have satisfied the registration requirements under the diesel rule. This also applies to the registration requirements for refiners subject to the small refiner or temporary hardship relief provisions, and refiners and importers subject to the GPA standards. Refiners and importers who are not already registered with EPA must register in accordance with the registration requirements under the RFG program.

3( b) Public Notice Prior to Submission to OMB Public comment has been solicited on this ICR. The first Federal Register notice announcing availability of this ICR was published on May 23, 2001. The comment period closed on July 23, 2001. No comments were received. The notice was then prepared for submission to OMB.

3( c) Consultations EPA has discussed aspects of this information collection with representatives of regulated industry.

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 diesel sulfur control on small businesses. These recommendations were carefully considered by EPA in developing the proposed and final rules and the specific provisions for qualifying small refiners. A copy of the Panel's report is available in the docket for this regulatory action. The docket number is A 99 06 and the docket is located at U. S. Environmental Protection Agency, Air Docket ( 6102), Room M 1500, 401 M Street, S. W., Washington, DC 20460. Docket hours are from 8: 00 a. m. to 5: 30 p. m. Monday to Friday, except on government holidays. The Air Docket telephone number is ( 202) 260 7548. 6 The Panel report contains a list of the fuel industry's participating small entity representatives, and provides a summary of their comments.

3( d) Effect of Less Frequent Collection The diesel rule requires refiners and importers to submit annual reports which will, by the information contained therein, demonstrate a party's compliance with the applicable sulfur standards. Less frequent submittal of such reports would severely hinder EPA's ability to monitor compliance, and would likely lead to noncompliance.

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 testing ( if conducted) 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 diesel fuel found to be in violation of the sulfur standard. These recordkeeping requirements should impose little additional burden. Five years is the applicable statute of limitations for fuel programs. See 28 U. S. C. 2462.

Refiners and importers will be submitting a limited amount of proprietary information in their annual reports. Those submitting a baseline or applying for one of the flexibility options such as small refiner, GPA or temporary relief provisions, will be submitting additional proprietary information.

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 entry and access to facilities.

3( f) Confidentiality As discussed in 3( e) above, proprietary information will be submitted by refiners and importers. Confidentiality for such information is covered by established Agency procedures and the 7 regulations at 40 CFR Part 2.

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

4. THE RESPONDENTS AND THE INFORMATION COLLECTED 4( a) Respondents/ SIC Codes The respondents to this information collection are:  Refiners ( both domestic and foreign refiners who manufacture diesel for use in the U. S.)  Importers of diesel into the U. S.  Diesel distributors, carriers, wholesale purchaserconsumers and retailers  Users of research and development diesel ( testing laboratories)

Recordkeeping and, in some cases, reporting are required by the following industries: refiners ( 2911), importers ( 5172), pipelines ( 4613), petroleum marketers and and other distributors ( 5171,5172), terminals ( 4226), fuel oil dealers ( 5983), fuel additive manufacturers ( 5172, 2911), and petroleum retailers and wholesale purchaser consumers ( 5541).

Some of the required records  like product transfer documents  ( PTDs) are generated and maintained in the normal course of business ( i. e., customary business practices, or " CBP"). Diesel fuel additive manufacturers who sell bulk additives to terminals will have a new requirement to generate PTDs describing the sulfur content of such additives. This burden on additive manufacturers should be minimal. Without the required records, EPA would be unable to enforce the diesel sulfur requirements.

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

" Diesel fuel" means any fuel sold in any state or Territory of 8 the United States and suitable for use in diesel motor vehicles, diesel motor vehicle engines or diesel nonroad engines, and which is commonly or commercially known or sold as diesel fuel.

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

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

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

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

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

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

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

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

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

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

" Motor vehicle diesel fuel additive" means any substance not 9 composed of purely carbon and/ or hydrogen, or of diesel blendstocks, that is added, intended for adding, used, or offered for use in motor vehicle diesel fuel subject to its production.

2. Recordkeeping and Reporting Requirements a. General Recordkeeping and Reporting Requirements Applicable to Refiners and Importers Registration. ( See 40 CFR § 80.597.) The diesel sulfur program requires that refiners and importers who are either currently producing and supplying highway diesel fuel, or that expect to do so by June 1, 2006, must register with EPA by December 31, 2001. Where a registrant has already provided information under the reformulated gasoline and anti dumping program ( see 40 CFR § 80.76), that registrant is not required to re register under this diesel program. Most refiners and importers will have already registered and we estimate that we will receive fewer than 35 registrants by the December 31, 2001 date and 15 new registrants or updates to previously filed registrations per year thereafter. Registration information can be submitted on the existing company and facility forms used for reformulated gasoline and antidumping

Pre Compliance Reports. ( See 40 CFR § 80.594.) By June 1, 2003, all refiners and importers must generally report on their progress towards meeting the diesel sulfur standard of 15 ppm. Pre compliance reports are also due on June 1, 2004 and June 1, 2005. Pre compliance reports may be submitted electronically or on paper and must describe any changes related to registration, volume estimates for both 15 ppm and 500 ppm diesel fuel to be produced from crude oil and other sources, estimates as to the number of credits to be earned and/ or used, and information indicating progress toward making necessary capital commitments and modifications to produce 15 ppm diesel fuel by the appropriate date. All pre compliance reporting ends with the annual report due on June 1, 2005. Pre compliance reports must be accompanied by a written, signed certification by a responsible corporate officer.

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

Beginning with June 1, 2006 or the first compliance period during which credits are generated, any refiner or importer who produces or imports diesel fuel subject to the 500 ppm sulfur standard or who generates credits under the diesel program must submit annual reports to EPA. The annual reports are due the last day of February for the previous year's activity. 10 Annual reports must contain the following information: name of the company and registration number, volume and quality data for all diesel fuel produced for sale within the United States during the compliance period, what percentage of fuel met the 15 ppm and 500 ppm sulfur standards, and information regarding credits generated, used, and/ or transferred. ( See 40 CFR § 80.593.) Small refiners will be required to provide minimal additional information, which varies according to which small refiner option the refiner will be using. ( See section IV. C of the January 18, 2001 Federal Register notice and the small refiner discussion below.) All annual reports must be accompanied by a written, signed certification by a responsible corporate officer.

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

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

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

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

1) the number of credits possessed at the beginning of the year; 5) the number of credits generated during the year; 6) the number of credits used during the year; 7) information about any party from whom credits were obtained or to whom credits were traded, including that party's EPA 11 registration number; 8) any credits that will carry over into ( the) subsequent year( s); and 9) any other commercial documents related to transfer of credits.

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

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

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

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

Product transfer documents. ( See 40 CFR § 80.590.) All parties in the distribution system are required to keep product transfer documents ( PTDs), but refiners and importers are also required to initially generate and provide information on commercial PTDs that identify diesel fuel for highway use complying with either the 15 ppm or 500 ppm standard or identifying the diesel fuel as meeting certain other specific needs. For example, PTDs will be used to identify diesel fuel as meeting the 15 ppm or 500 ppm 12 sulfur standard, as diesel fuel for export only, as diesel fuel for use in specified Territories, as diesel fuel for use as research and development fuel only, etc. Product transfer documents are also used to identify diesel fuel for use in Alaska and exempt from Federal dye requirements. ( See 40 CFR § 69.51( a)( 2) and ( c)( 2).)

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

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

Product transfer documents for additives. ( See 40 CFR § 50.591.) Product transfer documents for diesel additives must indicate that the additive does not exceed 15 ppm sulfur or, in the alternative, that the additive does exceed 15 ppm sulfur and care must be taken to blend it properly in order to ensure that the blended final product is compliant with the 15 ppm sulfur standard.

Quality assurance test results for batches of diesel fuel. ( See 40 CFR § 80.592.) Refiners and importers are not required to test each batch of diesel for its sulfur content. Quality assurance testing is voluntary, although nearly all refiners and importers would engage in such testing in order to establish an 13 affirmative defense under an enforcement scenario. Records retained would have to indicate the location, date, time and storage tank or truck sampled, the name and title of the person who sampled the tank or truck, and the results of any testing. For any product that was non compliant as a result of quality assurance testing, records would have to be made and kept to indicate the actions the party has taken, if any, to identify the cause of the noncompliance and to prevent future instances of noncompliance. Any generated records related to quality assurance testing would have to be retained for five years.

All records, including electronic records and the various types of specific recordkeeping and reporting requirements ( discussed below), must be made available to EPA upon request.

b. Applications and baselines for small refiners. ( See 40 CFR § § 80.550  80.80.553.)

Small refiners must apply for small refiner status. Application must be made by December 31, 2001. ( This date may be June 1, 2003 in limited circumstances involving the activation or reactivation of a refinery.)

Small refiner applications must include information about the company, its corporate structure and its refining capacity that will permit EPA to assess whether the refiner is, in fact, " small" for purposes of the program. All applications must be in writing and signed and certified by a responsible corporate officer.

The application must indicate whether the refiner is seeking to continue the sale of 500 ppm motor vehicle diesel fuel and/ or to generate early compliance credits, or if the refiner is seeking an extension of its small refiner gasoline sulfur standard under the gasoline sulfur regulations. ( See 40 CFR § § 80.240, 80.552( c) and 80.553.)

Small refiners must apply for a small refiner baseline by December 31, 2001. ( See 40 CFR § 80.595.) A separate volume baseline must be submitted for each refinery for which small refiner status is sought. Instructions for calculating the baseline are included in the regulations at 40 CFR § 80.596. The baseline must be accompanied by a written signature and certification by a responsible corporate officer.

Small refiners must comply with the same recordkeeping and reporting requirements, including pre compliance and annual 14 reports, required of all refiners. If they choose to continue to produce 500 ppm and/ or to generate credits, then they will have to make a showing ( as part of the pre compliance and/ or annual report) that sufficient sources of 15 ppm diesel exist in areas where they will supply 500 ppm product. If, after 2003, the sources of 15 ppm diesel decrease, then they must further identify ( as part of the pre compliance and/ or annual report) the change and include supplementary information showing that the sources of 15 ppm product are still adequate.

If the small refiner falls under the diesel/ gasoline compliance date option, then it must provide information ( as part of the pre compliance or annual report) showing that it will be in a position to produce 100% of its highway diesel fuel at the 15 ppm level and at a volume that is at least 85% of its baseline highway diesel volume.

c. Applications and baselines for GPA refiners. ( See 40 CFR § § 80.540 and 80.595.)

A refiner may apply for permission to produce gasoline subject to the geographic phase in ( GPA) standards of the gasoline sulfur regulations ( 40 CFR subpart H, § 80.216) in 2007 and 2008. Such a refiner would have to comply with the 15 ppm diesel sulfur standard starting on June 1, 2006. As with the small refiner program, the volume of motor vehicle diesel fuel to be produced is tied to a baseline volume. Therefore, the refiner must also apply for a baseline by December 31, 2001. ( See 40 CFR § 80.595.) A separate volume baseline must be submitted for each refinery for which small GPA status is sought. The baseline may be submitted electronically. Instructions for calculating the baseline are included in the regulations at 40 CFR § 80.596. The application and the baseline must be accompanied by a written signature and certification by a responsible corporate officer. A refiner may later ask the Administrator to vacate the extension of the GPA standards and must do so in writing.

GPA refiners must comply with the same recordkeeping and reporting requirements, including pre compliance reports, required of all refiners.

d. Applications by Refiners Seeking to Be Granted Temporary Relief for General Hardship. ( See 40 CFR § 80.560.)

A refiner may petition for temporary relief from some or all of the diesel requirements if the refiner can demonstrate that unusual circumstances exist that impose extreme hardship and prevent the refiner from being able to comply with applicable 15 requirements. The items that must be included in the petition are laid out in 40 CFR § 80.560 and include description of a plan demonstrating how the refiner plans to comply with the diesel rule's requirements as soon as possible, information about the refiner's efforts to obtain capital for refinery improvements or to obtain credits, information about the bond rating of the entity that owns the refinery, and similar items that support the application. The refiner must also include a compliance plan that will demonstrate how the refiner will engage in a quality assurance testing program, engage in period sampling and testing at its own facilities and at downstream locations, inspect retail and wholesale purchaser consumer facilities it supplies to ensure proper segregation and labeling of its product, etc. All applications must be accompanied by a signed, certification letter from a responsible corporate officer.

e. Applications by Refiners Seeking to be Granted Relief under Extreme Circumstances. ( See 40 CFR § 80.561.)

In appropriate extreme, unusual, and unforseen circumstances, clearly outside the control of the refiner or importer and which could not have been avoided by exercising due diligence, EPA may permit distribution of diesel fuel that does not meet regulatory requirements if certain conditions are met ( e. g. it must be in the public interest to do so, the refiner must make up any air quality detriment, the refiner must pay the U. S. Treasury an amount equal to the economic benefit of the nonconformity minus the amount paid making up any air quality detriment, etc.). Due to the extreme nature of this relief, no exact format is prescribed by the regulations for application. However, in order for the Agency to make a decision as to whether to grant such relief, it is necessary for the party to describe the circumstances in sufficient detail.

f. Applications for Research and Development Exemptions. ( See 40 CFR § 80.600.)

Any person may receive an exemption from the regulations for diesel fuel used for research, development, or testing purposes. The regulations specify the type of information a party would submit in order to demonstrate that there is a legitimate basis for granting an exemption. Such information includes a concise statement of the purpose and scope of the program and an explanation as to why an exemption is needed. Information about the duration of the program, the maximum number of vehicles or engines involved, and the quantity of diesel fuel is to be provided to the Agency. In addition, the party must provided information about the site where research is to be conducted and 16 the manner in which records will be kept. Contact information must be provided.

g. Recordkeeping and reporting that is specific to foreign refiners subject to a temporary compliance option or a hardship provisions ( See 40 CFR § 80.620.)

Generally, the requirements of the diesel program are to be met by the importer ( who imports foreign refiner diesel) unless a foreign refinery has applied for and received EPA approval to produce motor vehicle diesel fuel under the temporary compliance option or one of the hardship provisions. Foreign refiners may seek to be included under the temporary compliance option ( see 40 CFR § § 80.530 80.532), the small refiner hardship provisions ( see 40 CFR § § 80.552 and 80.553), the temporary relief provisions of 40 CFR § 80.560 or the extreme unforeseen circumstances provisions of 40 CFR § 80.561. As with other refiners, application must be made in writing to EPA, and signed and certified by a responsible corporate officer. The writing must be in English or an English translation must be provided.

Because of the difficulties of enforcing requirements in foreign countries, there is an attest engagement requirement associated with foreign refiner flexibility. This must be performed on a yearly basis and must be submitted on May 30th for the prior calendar year. An attest engagement is similar to a financial audit and is to be conducted by a party who is independent of the foreign refiner and who is either a licensed CPA or a person approved in advance by EPA who is capable of carrying out those duties.

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

There are two types of early credits under this program: 1) credits generated after May 31, 2005 and before June 1, 2006, and 2) credits generated after June 1, 2001 but before May 31, 2005. For credits falling under 1), the refiner would have to submit information demonstrating that 15 ppm diesel fuel produced earlier will be segregated and not commingled with 500 ppm diesel fuel. No early credits may be generated by any refiner who does not submit a notification to EPA and demonstrate how it will ensure segregation of its 15 ppm and 500 ppm fuel. For credits 17 generated under 2), the refiner must demonstrate that the 15 ppm fuel is actually used in vehicles meeting the 2007 particulate matter standard or in retro fitted vehicles that are achieve comparable emissions levels. No credits may be claimed by a refiner who does not submit the appropriate notifications to EPA.

3. Respondent Activities The following are required:

1. Read and comprehend the regulations and instructions for submission of registration, reports, and/ or applications.

2. Train personnel to meet the requirements, employing new technologies if warranted.

3. Develop the information that is not already available.

4. Gather and organize the information.

5. Review the information, perform quality assurance, and take corrective action, if necessary, to meet the regulatory requirements.

6. Report the information to EPA in an appropriate manner, and/ or retain the information, as specified in the regulations. 18 5. THE INFORMATION COLLECTED  AGENCY ACTIVITIES, COLLECTION METHODOLOGY, AND INFORMATION MANAGEMENT 5( a) Agency Activities The following are required:

3.

Prepare necessary guidance documents, including a Question and Answer ( Q& A) document

Convey the requirements in a manner that is understandable. Emphasize the benefits of submitting data electronically.

Respond to inquiries.

Provide access to the regulations, guidance documents, and forms.

Review the submitted information prior to data entry for compliance with submission requirements.

Process baseline applications and applications for hardships.

Contact the respondent when the information has not been submitted properly and provide guidance on correction of the problem.

Maintain and refine hardware and software systems for handling confidential data via hard copy and electronically.

Administer a contract for data entry.

Input information into databases and store the information.

Perform data analysis and identify violations. 1. 5( b) Collection Methodology and Management The information collection has been developed by EPA offices that have planned and allocated resources for the efficient and effective management and use of the information to be collected, 19 including the processing of the information in a manner which shall enhance the utility of the information for the Agency and the public. The information collection, to the maximum extent practicable, uses appropriate information technology to reduce burden and improve data quality, Agency efficiency, and responsiveness to the public.

EPA will accept common electronic formats for most of the reporting requirements  for example, annual reports may be submitted in any of several commercial spreadsheet formats or, more simply, as comma delimited text files. For applications for small refiner status, research and development exemptions, and similar documents, any format may be used that contains the necessary information. All submissions must be signed and certified by a responsible corporate officer. Electronic submissions should be encrypted and must contain a " hash value," as discussed above in section 4.

The product transfer document information can be included on standard transfer documentation customarily used in the ordinary course of business. EPA allows the information to be encoded by upstream parties ( refiners, importers, terminals) to facilitate reporting and save space.

The information is carefully reviewed for compliance with the requirements. Most of the information submitted to the Agency is confidential. It is stored in a secure area and on secure databases.

5( c) Small Entity Flexibility The information collection reduces to the extent practicable and appropriate the burden on respondents, including small entities. The major reporting requirements apply to refiners and importers of diesel , which are not usually small businesses. Small refiners and other parties are required to supply information in order to confirm their status and the applicability of appropriate flexibility provisions to them. However, most of these reporting requirements are included in the one time submission of the registration, application, and baseline. Other small businesses which are covered, including diesel distributors, retailers, and wholesale purchaser consumers, have no mandatory requirements other than maintaining product transfer documents, which is already done in the ordinary course of business. 20 6. ESTIMATING THE BURDEN AND COST OF THE COLLECTION 6( a) and( b) Estimating Respondent Burdens and Costs Several reporting burdens associated with this program are one time burdens associated with the start of the program. For example, there is a one time reporting burden associated with registration ( for those parties who are not already registered under the reformulated gasoline and anti dumping program or gasoline sulfur program). There is also a one time reporting burden associated with each application under various available compliance options, including the small refiner, GPA, and temporary hardship provisions.

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

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

Three labor categories are involved: managerial ( includes legal and professional review), technical, and clerical. According to the Bureau of Labor Statistics, Employment Cost Trends ( March 1996), for all workers in manufacturing industries, wages and benefits were:

Wages and Benefits Managerial $ 37.72 per hour Technical $ 27.90 per hour Clerical $ 16.69 per hour Doubling for company overhead beyond wages and benefits, employing a 3% annual inflation factor to bring the rates to 2001, and for convenience, rounding to the dollar, gives the following rates for this ICR:

Total Employer Cost Managerial $ 86 per hour Technical $ 64 per hour Clerical $ 38 per hour 21 The labor mix for the activities above will be about the same for each. It is assumed that for each hour of activity the mix will be about 0.1 hour managerial, 0.7 hour technical, and 0.2 hour clerical. This gives an average labor cost of about $ 60 per hour, which will be used in this ICR. The annual burden estimates given below are based upon the likely respondents and estimated number of reports, industry contact, and our knowledge of likely industry activity over the next three years. They are presented in the same order as above, but with abbreviated titles. The estimated respondent population by respondent is noted on the table below.

ANNUAL ESTIMATED REPORTING BURDENS For most activities the estimate is one hour per report. However, some reports and some applications may require considerably more time, as estimated below. We expect that all or nearly all annual reports and baselines applications will be submitted electronically. 1 Many parties have already registered under other fuels program and will not have to re register. We are assuming 125 refineries, 75 importers, and 1,350 terminals total for purposes of this annual burden table.

2 These are one time burdens.

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

22 Annual Burden Table by Collection Activity Collection Activity Number of Respondents Reports per Respondent/ Total Hours per Report/ Total Labor Costs in $ Non postage Other Costs in $

Refiner and importer registration1 20 1/ 20 1/ 20 1,200 Application for Small Refiner Status ( including Baseline) 2 25 1/ 25 20/ 500 30,000 GPA Application ( including Baseline) 2 10 1/ 10 20/ 200 12,000 Temporary Hardship Relief Application2 20 1/ 20 20/ 400 24,000 Application for Relief Under Extreme Circumstances3 2 1/ 2 40/ 80 4,800 Collection Activity Number of Respondents Reports per Respondent/ Total Hours per Report/ Total Labor Costs in $ Non postage Other Costs in $

4 Estimate is based upon the number of R& D exemptions requested in similar programs and upon discussion with industry sources. 23 R& D Exemption Application4 8 1/ 8 1/ 8 480 Refiners' and importers'

database and software programming needs for diesel reporting and credit tracking2 200 1/ 200 150/ 30,000 ( annualized over 3 years) 1,800,000 Refiners' and Importers' Precompliance Reports 200 1/ 200 20/ 4,000 240,000 Refiners' and Importers'

Annual reports 200 1/ 200 40/ 8,000 480,000 Collection Activity Number of Respondents Reports per Respondent/ Total Hours per Report/ Total Labor Costs in $ Non postage Other Costs in $

5 Product transfer documents are kept in the normal course of business; however there is a one time burden associated with creating new program codes or phrases.

6 Product transfer documents are kept in the normal course of business; however there is a one time burden associated with creating new program codes or phrases. 24 Refiners' and importers'

creation of new product codes or phrases for Product Transfer Documents5 200 15/ 3000 .33/ 990 ( annualized over 3 years) 59,400 Diesel additive manufacturers'

creation of new product codes or phrases for Product Transfer Documents6 250 100/ 25,000 .33/ 8,250 ( annualized over 3 years) 495,000 Voluntary QA by refiners and importers 200 100/ 20,000 1/ 20,000 1,200,000 4,800,000 ( 24,000 per respondent, 1/ 2 assumed to be O & M and 1/ 2 assumed to be capital cost) Collection Activity Number of Respondents Reports per Respondent/ Total Hours per Report/ Total Labor Costs in $ Non postage Other Costs in $

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

25 Attest engagements for foreign refiners7 5 1/ 5 40/ 200 12,000 50,000 Purchased Services ( PS)

( 10,000 per respondent per year)

This page intentionally left blank. 26 TOTALS:

TOTAL NO. OF REPORTS: 48,690 TOTAL BURDEN HOURS: 72,648 TOTAL LABOR COSTS: 4,358,880 TOTAL O& M AND CAPITAL COSTS: 4,800,000 ( 1/ 2 O& M and 1/ 2 CAPITAL)

TOTAL PURCHASED SERVICES COSTS: 50,000 TOTAL OF ALL COSTS = 9,208,880 27 6( c) Estimating Agency Burden and Cost The Agency activities listed in 5( a) are part of an overall gasoline and diesel reporting system ( including reformulated gasoline, conventional gasoline, and diesel). This system is handled by a contractor for $ 218,000 per year, a GS 13 computer specialist for $ 120,000 per year ( including overhead), a GS 13 program analyst for $ 120,000 per year, and the equivalent of a GS 14 program manager for $ 150,000 per year. Annual cost for lease and security of the secure area where the confidential data are stored and analyzed is estimated at $ 30,000. Annual computer cost is estimated at $ 30,000. Thus, the annual estimated cost to the government is $ 668,000. The total annual hours for government employees are 3 full time equivalents ( FTE) x 2080 hours/ FTE = 6,240 hours.

6( d) and ( e) Estimating the Respondent Universe and Total Burden and Costs, and Bottom Line Burden Hours and Costs This was incorporated into 6( a) and ( b).

6( f) Reasons for Change in Burden The reporting burden related to diesel fuel has changed as a result of the final rule establishing the low sulfur motor vehicle diesel fuel requirements.

6( g) Burden Statement There are only two printed forms for this program. These are the same as the company and facility registration forms currently used for the RFG and anti dumping program ( OMB Control Number 2060 0277.) Parties may indicate a diesel registration by simply writing " diesel" at the top of the form( s) if they so wish. The burden statement is proposed to continue to read as follows:

The public reporting burden for this Environmental Protection Agency ( EPA) collection of information is estimated to average one hour per response. This includes time for reviewing instructions and regulations, searching company records, gathering the needed data, and completing, reviewing, copying, and transmitting the collection of information. 28 Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or provide information to or for a Federal agency. This includes the time needed to review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions or requirements; train personnel to be able to response to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information. An Agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. The OMB control numbers for EPA's regulations are listed in 40 CFR PArt 9 and 48 CFR Chapter 15.

Send comments on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including through the use of automated collection techniques to the Director, OPPE Regulatory Information Division, U. S. Environmental Protection Agency ( 2137) 1200 Pennsylvania Avenue, N. W., Washington, DC; and to the Office of Information and Regulatory Affairs, Office of Management of Budget, 725 17th Street, NW, Washington, DC 20503, Attention, Desk Officer for EPA. Include the EPA ICR number and OMB control number in any correspondence.

Part B of the Supporting Statement  Not Applicable.


[Federal Register Volume 79, Number 36 (Monday, February 24, 2014)]
[Notices]
[Pages 10143-10144]
[FR Doc No: 2014-03862]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-9907-00-OAR]

Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2012

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of document availability and request for comments.

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SUMMARY: The Draft Inventory of U.S. Greenhouse Gas Emissions and
Sinks: 1990-2012 is available for public review. Annual U.S. emissions
for the period of time from 1990 through 2012 are summarized and
presented by source category and sector. The inventory contains
estimates of carbon dioxide (CO2), methane (CH4),
nitrous oxide (N2O), hydrofluorocarbons (HFC),
perfluorocarbons (PFC), and sulfur hexafluoride (SF6)
emissions. The inventory also includes estimates of carbon fluxes in
U.S. agricultural and forest lands. The technical approach used in this
report to estimate emissions and sinks for greenhouse gases is
consistent with the methodologies recommended by the Intergovernmental
Panel on Climate Change (IPCC), and reported in a format consistent
with the

United Nations Framework Convention on Climate Change (UNFCCC)
reporting guidelines. The Inventory of U.S. Greenhouse Gas Emissions
and Sinks: 1990-2012 is the latest in a series of annual U.S.
submissions to the Secretariat of the UNFCCC. EPA requests
recommendations for improving the overall quality of the inventory
report to be finalized in April 2014, as well as subsequent inventory
reports.

DATES: To ensure your comments are considered for the final version of
the document, please submit your comments by March 26, 2014. However,
comments received after that date will still be welcomed and considered
for the next edition of this report.

ADDRESSES: Comments should be submitted to Mr. Leif Hockstad at:
Environmental Protection Agency, Climate Change Division (6207J), 1200
Pennsylvania Ave. NW., Washington, DC 20460, Fax:<PHONE_NUMBER>. You
are welcome and encouraged to send an email with your comments to
<EMAIL_ADDRESS>
FOR FURTHER INFORMATION CONTACT: Mr. Leif Hockstad, Environmental
Protection Agency, Office of Air and Radiation, Office of Atmospheric
Programs, Climate Change Division,<PHONE_NUMBER>,
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: The draft report can be obtained by visiting
the U.S. EPA's Climate Change Site at: http://www.epa.gov/climatechange/ghgemissions/usinventoryreport.html.

    Dated: February 12, 2014.
Janet G. McCabe,
Acting Assistant Administrator, Office of Air and Radiation.
[FR Doc. 2014-03862 Filed 2-21-14; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 85, Number 127 (Wednesday, July 1, 2020)]
[Notices]
[Pages 39661-39664]
[FR Doc No: 2020-14155]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Docket No. FRA-2012-0033]

Notice of Intent To Grant a Buy America Exemption to Amtrak To
Purchase Certain Non-Domestic Track Maintenance Equipment

AGENCY: Federal Railroad Administration (FRA), United States Department
of Transportation (DOT).

ACTION: Notice of intent to grant Amtrak Buy America exemption.

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SUMMARY: FRA is issuing this notice to provide information to the
public regarding its finding that it is appropriate to grant the
National Railroad Passenger Corporation (Amtrak) an exemption from
Amtrak's Buy America requirement for procurement of the following non-
domestic track maintenance equipment as part of its state-of-good-
repair (SOGR) program: One tunnel crane; one track laying machine; and
eight two-man rail car movers.

DATES: Written comments on FRA's determination to grant a Buy America
exemption to Amtrak should be provided to FRA on or before July 8,
2020.

ADDRESSES: Please submit your comments to the U.S. Government
electronic docket site at http://www.regulations.gov, in docket number:
FRA-2012-0033.
    Note: All submissions received, including any personal information
therein, will be posted without change or alteration to http://www.regulations.gov. For more information, you may review DOT's
complete Privacy Act Statement published in the Federal Register on
April 11, 2000 (65 FR 19477).

FOR FURTHER INFORMATION CONTACT: Mr. John Johnson, Attorney-Advisor,
FRA Office of the Chief Counsel, 1200 New Jersey Avenue SE, Washington,
DC 20590,<PHONE_NUMBER><EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: The purpose of this notice is to provide
information to the public regarding FRA's finding that it is
appropriate to grant Amtrak an exemption from Amtrak's Buy America
requirement, pursuant to 49 U.S.C. 24305(f)(4)(A)(iii), to purchase the
following non-domestic equipment as part of its SOGR program: Railbound
Tunnel Crane; Track Laying Machine; and eight Two-Man Rail Car Movers
with Heavy Duty Crane, Railgear, and Rail Car Couplers.

Background

    Amtrak is the Nation's Federally chartered intercity passenger rail
operator and rail infrastructure provider. Among its infrastructure
assets, Amtrak owns 1,169 track miles of infrastructure on the
Northeast Corridor (NEC), which connects Washington, DC; Philadelphia,
Pennsylvania; New York, New York; and up to the Massachusetts/Rhode
Island border. Amtrak provides the infrastructure for approximately
820,000 trips daily. Amtrak is designing a program to achieve a SOGR
across its infrastructure assets, meaning that its assets perform
safely, as designed, within their estimated service lives. Amtrak
Engineering has assessed the SOGR backlog at $33.3 billion for
infrastructure nationally.
    Amtrak's infrastructure is divided into four categories: Track;
Bridges and Buildings; Electric Traction; and Communications and
Signals. The three components of track are rail, ties, and ballast.
These components are integrated and if any are not in a SOGR, track
geometry suffers, trains no longer travel at the desired speed, trip
time is extended, and ride quality suffers. Each of these consequences
negatively impacts revenue, ridership, and customer experience. Amtrak
has set an aggressive 10-year schedule to eliminate the SOGR backlog.
The equipment that is the subject of Amtrak's exemption request (one
(1) Railbound Tunnel Crane, one (1) Track Laying Machine, and eight (8)
Two-Man Rail Car Movers with Heavy Duty Crane, Railgear, and Rail Car
Couplers), will be used to repair and maintain Amtrak's Track
Infrastructure Assets.
    On October 9, 2019, Amtrak requested an exemption \1\ from the
National Railroad Passenger Corporation (Amtrak) domestic buying
preference requirement (49 U.S.C. 24305(f)) to purchase certain track
maintenance equipment for its state-of-good-repair (SOGR) program.
Amtrak seeks to purchase: One tunnel crane, one track laying machine,
and eight two-man rail car movers with heavy duty crane, railgear, and
rail car couplers (Car Movers). In its request, Amtrak states that
products meeting its specifications are not available from a U.S.
source. On March 31, 2020, FRA provided public notice of Amtrak's
exemption request and a 20-day opportunity for comment. FRA also
emailed the notice to over 6,000 recipients that requested Buy America
notices through ``GovDelivery.'' For the reasons stated below, FRA
grants a non-availability exemption to Amtrak.
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    \1\ Amtrak's exemption request is available at: https://railroads.dot.gov/legislation-regulations/buy-america/amtrak-buy-america-maintenance-equipment-exemption-request.
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Buy America Requirement

    With certain exceptions, Amtrak's Buy America statute requires
Amtrak to buy only ``(A) unmanufactured articles, material, and
supplies mined or produced in the United States; or (B) manufactured
articles, material, and supplies manufactured in the United States
substantially from articles, material, and supplies mined, produced, or
manufactured in the United States.'' 49 U.S.C. 24305(f)(2). Amtrak's
requirements apply without regard to the source of funds; if it does
not receive an exemption, it may not acquire goods that are not
consistent with Section 24305(f)(2), even if it does not propose to use
Federal funds. However, FRA may exempt Amtrak from this requirement
when one of the exemptions of 49 U.S.C. 24305(f)(4)(A) or (B) have been
met. Section 24305(f)(4)(A)(iii) permits an exemption when, ``the
articles, material, or supplies, or the articles, material, or supplies
from which they are manufactured, are not mined, produced, or
manufactured in the United States in sufficient and reasonably
available commercial quantities and are not of a satisfactory
quality.'' This is typically referred to as a ``non-availability
exemption.''
    In addition to the Buy America statute, FRA's action is subject to
Executive Order 13788, Buy American and Hire American (April 18, 2017).
Consistent with Executive Order 13788, FRA evaluated Amtrak's request
to determine whether it had sought maximize the use of goods, products,
and materials produced in the United States.

Findings

    In its letter to FRA, dated October 9, 2019, Amtrak described in
detail the need for equipment that met the technical specifications for
its SOGR program, the steps taken to identify domestically-sourced
equipment, and the harm that would result in the absence of an
exemption. FRA evaluated the information Amtrak provided and made the
following findings.

A. Railbound Tunnel Crane

    New York Penn Station (PSNY) handles over 1,300 train moves
carrying 350,000 people on Amtrak, New Jersey Transit (NJ Transit), and
Long Island Railroad (LIRR) trains every day. The track structure
consists of 87 turnouts, including 34 slip switches, each equivalent to
four conventional turnouts, totaling 219 turnouts. It is Amtrak's
busiest station on the Northeast Corridor with 21 tracks fed by seven
tunnels serving Amtrak, NJ Transit, and LIRR.
    Currently, Amtrak is replacing turnouts in PSNY with a 1994-built
crane which is well-tested under the extreme production requirements of
PSNY. However, after 25 years, its reliability has decreased
significantly, and it lacks the remaining components of the system upon
which Amtrak is relying to replace one turnout per 55-hour track
possession window.
    In May 2019, Amtrak issued a Request for Proposal (RFP) for one
Railbound Tunnel Crane. In accordance with Amtrak's procurement
process, the RFP was posted to the Procurement Portal on Amtrak's
website. In addition, Amtrak solicited four companies that participated
in a request for information process for similar equipment in the past
to participate in the acquisition event; proposals were received from
three offerors. Amtrak evaluated the proposals on compliance with the
technical specifications, previous relevant and successful experience
in providing similar supplies, pricing, and delivery. The Railbound
Tunnel Crane consists of interrelated units that function as one
complete system. Amtrak's Technical Evaluation Committee evaluated the
three proposals in accordance with the terms of the RFP and concluded
that only one offeror met the requirements of the specification. The
sole successful offeror's tunnel crane does not meet the Amtrak Buy
America requirements.
    Amtrak maintains that not having the Railbound Tunnel Crane would
have an adverse effect on the Penn Station turnout replacement plan.
Over the past 2 years, Amtrak has only been able to replace 20 of the
219 turnouts, requiring forty-two 55-hour track outages, which impacted
service to Amtrak, NJ Transit, and LIRR. According to Amtrak, the
current crane system takes two 55-hour track outages to replace a
turnout; whereas, the proposed crane system would permit the
replacement of a turnout during one 55-hour track outage. According to
Amtrak, the inability to replace more than 10 turnouts per year will
increase the SOGR backlog, and prevent PSNY from ever achieving a SOGR.
    FRA's engineering team accepts Amtrak's assertions that none of the
Buy America-compliant bidders offered products meeting Amtrak's
specification, and that not having the tunnel crane would have an
adverse effect on Penn Station's SOGR program.

B. Track Laying Machine

    The new Track Laying Machine is required to address the NEC's
concrete tie condition. The NEC has three million concrete ties which
are projected to have a 40 to 50-year life; one million Santa Fe San
Vel concrete ties were installed between 1978 and 1982 and are now on
the verge of needing replacement.
    Furthermore, during the 1990s, Amtrak installed 1.4 million Rocla
concrete ties that began failing at an accelerated rate in 2004,
requiring replacement well before the end of the projected useful life.
Neither the San Vel replacement nor the Rocla replacement can be
achieved with Amtrak's current equipment.
    In August 2018, Amtrak issued an RFP for one Track Laying Machine.
In accordance with Amtrak's procurement process, the RFP was posted to
the Procurement Portal on Amtrak's website. In addition, Amtrak
solicited bids from three companies that were known to Amtrak and had
previously supplied similar equipment to Amtrak.
    Amtrak received proposals from two offerors, including the proposed
awardee. The proposals were evaluated on compliance to the technical
specifications, previous relevant and successful experience in
providing similar supplies, pricing, and delivery. After an initial
technical review of the unsuccessful offeror's proposal, Amtrak
determined that it did not meet Amtrak's technical specification.
Amtrak initiated discussions with the offeror to delineate deficiencies
in the proposal and requested that the offeror submit a revised
proposal that met the specification requirements.
    Amtrak's Technical Evaluation Committee thoroughly evaluated the
offeror's revised proposal and the proposed awardee's original proposal
and determined that only the proposed awardee met the technical
specification requirement. The sole successful offeror's Track Laying
Machine does not meet the Amtrak Buy America requirements. The nine
passenger railroads that rely on NEC infrastructure to provide rail
service to the public all have a vested interest in ensuring the
infrastructure can meet current and future service needs. If FRA denies
Amtrak's request for an exemption, then Amtrak cannot acquire the Track
Laying Machine. According to Amtrak, the new Track Laying machine will
cut Amtrak's footprint of track outage in half. Further, Amtrak cannot
achieve the annual steady state program for either the San Vel or Rocla
replacement cycle with its current equipment. As a result, Amtrak
maintains that not having the Track Laying Machine will have adverse
effects on Amtrak's ability to reduce the SOGR backlog, and ultimately,
negatively impact service and the ability to grow ridership.
    FRA's engineering team accepts Amtrak's assertions that none of the
Buy America-compliant bidders offered products meeting Amtrak's
specification, and that not having the Track Laying Machine would have
an adverse effect on Amtrak's ability to meet its SOGR goals.

C. Two-Man Rail Car Mover With Heavy Duty Crane, Railgear, and Rail Car
Couplers

    Amtrak's market research concluded that one company was the sole
manufacturer of the Car Movers, which are utilized extensively by
freight railroads. To create competition, Amtrak prepared a bidders
list that included the known manufacturer and twelve other truck
manufacturers to ascertain if any of these manufacturers had entered
the market for Car Movers.
    In March 2018, Amtrak issued an RFP for twelve different styles of
trucks that are required to maintain a SOGR, which included the Car
Movers. To ensure that there would be competition, Amtrak solicited
thirteen providers of a variety of trucks, which included the provider
of the Car Movers, that were known to Amtrak and had previously
supplied similar equipment to Amtrak to participate in the acquisition
event.
    Of the proposals Amtrak received, only two offerors provided a
proposal for the Car Movers. After a thorough technical review of the
proposals, the Technical Evaluation Committee determined that only the
known manufacturer's offering met the technical specification
requirement of a truck having 50,000 lbs of tractive effort capability.
The sole successful offeror's Car Movers do not meet the Amtrak Buy
America requirements. If FRA denies Amtrak's request for an exemption,
then Amtrak cannot acquire the Car Movers. Amtrak maintains that not
having the Car Movers will prevent Amtrak from achieving a SOGR.
    FRA's engineering team accepts Amtrak's assertions that none of the
Buy America-compliant bidders offered products meeting Amtrak's
specification, and that not having the Car Movers would have an adverse
effect on Amtrak's ability to meet its SOGR goals.

D. Summary of Information That Amtrak Provided to FRA on Efforts To
Identify Compliant Products and Maximize Domestic Content

    As described above, although Amtrak did not identify compliant
products, it provided information to FRA supporting its exemption
request, including:
     Information describing the domestic content
characteristics of the manufactured products needed, including the
sources and assembly locations of the products offered by all bidders;
     Information supporting the technical necessity of these
specific products for Amtrak's SOGR program, including details
supporting Amtrak's determination that unsuccessful bidders' products
did not satisfy technical specifications; and
     Information describing the effects of denying the request,
including the relationship between these products, the SOGR backlog,
and Amtrak's plan to eliminate that backlog.
    On the basis of this information, FRA concludes that Amtrak's
procurement was consistent with the policy in Executive Order 13788 to
maximize ``the use of goods, products, and materials produced in the
United States.'' FRA further concludes that denying the requested
exemption would not increase the use of goods, products, and materials
produced in the United States.

Determination Under 49 U.S.C. 24305

    FRA has determined an exemption is appropriate under 49 U.S.C.
24305(f)(4)(A)(iii) for the track maintenance equipment because
domestically produced equipment is not currently ``manufactured in the
United States in sufficient and reasonably available commercial
quantities and are not of a satisfactory quality.'' FRA bases this
determination on the following:
     Amtrak competitively bid its requirements and found that
there are no domestic solutions meeting Amtrak's specifications;
     FRA's engineering team concurs with Amtrak's
specifications, due to the unique operating environment on the NEC. FRA
also concurs with Amtrak's selection rationale and the effect on
Amtrak's SOGR if it cannot purchase this equipment; and
     On March 31, 2020, FRA provided public notice of Amtrak's
exemption request and a 20-day opportunity for comment. FRA also
emailed the notice to over 6,000 recipients that requested Buy America
notices through ``GovDelivery.'' FRA received 2 comments. However, the
commenters

did not provide any information about domestic sources for Amtrak's
specifications.
    This exemption applies only to Amtrak's acquisition of the
equipment described. FRA is providing notice of this finding and an
opportunity for public comment, after which, this exemption will take
effect. Questions about this Notice can be directed to, John Johnson,
Attorney-Advisor, at<EMAIL_ADDRESS>or<PHONE_NUMBER>.

    Issued in Washington, DC.
Quintin Kendall,
Deputy Administrator.
[FR Doc. 2020-14155 Filed 6-30-20; 8:45 am]
BILLING CODE 4910-06-P


[Federal Register Volume 78, Number 75 (Thursday, April 18, 2013)]
[Rules and Regulations]
[Page 23149]
[FR Doc No: 2013-09263]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 98

Mandatory Greenhouse Gas Reporting

CFR Correction

    In Title 40 of the Code of Federal Regulations, Parts 96 to 99,
revised as of July 1, 2012, on page 768, in Sec.  98.226, in paragraph
(n) introductory text, the last sentence is removed.

[FR Doc. 2013-09263 Filed 4-17-13; 8:45 am]
BILLING CODE 1505-01-D