2545ss01

SUPPORTING STATEMENT FOR THE

RECORDKEEPING AND REPORTING REQUIREMENTS FOR

THE RFS BIOINTERMEDIATES PROGRAM

1. Identification of the Information Collection

1(a) Title of the Information Collection

Recordkeeping and reporting requirements for the RFS Biointermediates Program, EPA ICR No. 2545.01, OMB Control Number 2060-NEW.

1(b) Short characterization:

The Environmental Protection Agency (EPA) is committed to taking steps to reduce emissions of greenhouse gases (GHGs). This commitment is based on several charges given to the EPA, such as the Climate Action Plan announced by President Obama in June 2013,¹ the Paris Agreement reached at the 2015 United Nations Climate Change Conference in December 2015,² and the Renewable Fuel Standard (RFS) program required under the Clean Air Act (CAA). Since more than 70 percent of the fossil oil used in the U.S.³ and 28 percent of GHG emissions⁴ come from the transportation sector, the EPA has developed a number of regulatory programs designed to reduce GHG emissions from vehicles and engines. These programs have targeted both the efficiency of vehicles and engines as well as their use of renewable fuels.

In order to continue the progress made in promoting the use of renewable fuels in the transportation sector, we believe it is important to take steps to remove potential barriers to their production, distribution, and consumption where such actions make sense. To this end, we have identified a number of areas where adjustments to the regulatory provisions may be warranted.

These changes center around the production, transfer, and use of biointermediates and the creation of new regulatory requirements related to registration, recordkeeping, and reporting for facilities producing or using a biointermediate for renewable fuel production. The new requirements on the biointermediate producer would be similar to those already required for renewable fuel producers.

We are also proposing a number of other changes to the RFS regulations and other fuel regulations to streamline them, add new pathways for renewable fuel production, provide clarifications, and make technical corrections. We anticipate that the following proposed amendments to the RFS regulations would result in additional information collection burdens:

• Registration, recordkeeping, and reporting requirements that we would require if we were to allow carbon capture and storage (CCS) as a lifecycle GHG emissions reduction technology in the context of the RFS program.⁵

• New pathways for the production of cellulosic fuels using short-rotation hybrid poplar and willow trees as a feedstock.

• Revising the requirements for the generation of RINs for fuel made from vegetable oils.

• Requiring obligated parties to report the breakdown of gasoline, diesel, and heating oil production as part of their annual compliance reports.

• Revising and clarifying the requirements for renewable fuel producers incident to the transfer of ownership of a registered renewable fuel production facility.

• Modifying the requirements for third-party engineers that perform engineering reviews for renewable fuel producers.

• Requiring biogas producers whose biogas is used to produce renewable electricity, compressed natural gas (CNG), or liquid natural gas (LNG) to register with the EPA.

• Addressing situations where a party is aware that renewable fuel it intends to transfer will be used for purposes other than as transportation fuel, heating oil, or jet fuel.

This supporting statement provides tables that break down reporting items for the proposed biointermediates program and technical amendments to the RFS program. Parties that are interested in registration, recordkeeping, and reporting burden would want to review the tables containing our estimates carefully.

2. Need For, and Use of, the Collection

2(a) Authority for the Collection

Sections 114 and 208 of the CAA, 42 U.S.C. §§ 7414 and 7542, authorize the EPA to require recordkeeping and reporting regarding enforcement of the provisions of Title II of the CAA.

2(b) Practical Utility/Uses of the Data

The recordkeeping and reporting requirements of this proposed regulation would allow the EPA to monitor compliance from biointermediate producers, renewable fuel producers, independent third-parties, obligated parties, and other responsible parties with the RFS program.

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

3(a) Non-duplication

Efforts have been made to eliminate duplication in this information collection. The information collected is considered CBI and unique to the closed DCFUEL database. The EPA has provided instructions in PDF in which the parties submit data in the Unified Report Form to the EPA’s Central Data Exchange (CDX). CDX also allows for updating and corrections to individual accounts. These data are not available from other sources.

3(b) Public Notice

Public notice of this ICR will be provided in the associated proposed rule. Any public comments received will be addressed in the ICR associated with the final rule.

3(c) Consultations

We have drawn upon our experience with RFS implementation and with similar fuels regulations to develop the estimates in this supporting statement. We also engaged in active outreach with stakeholders to help develop the estimates in this supporting statement.

3(d) Effects of Less Frequent Data Collection

We have designed the reporting schedule to coincide with existing reporting deadlines applicable to other parties regulated under the RFS program. Less frequent collection of data would make it impossible to carry out the provisions of the CAA.

3(e) General Guidelines

This information collection activity complies with 5 CFR 1320.6, except that respondents would be required to keep certain records for longer than three years. Specifically, parties would be required to keep product transfer documents (PTDs) and records related to the production, transfer, and use of biointermediates and renewable fuels for five years, and parties would be required to keep their compliance records (e.g., copies of periodic reports) for five (5) years. Five years is the applicable statute of limitations for other EPA fuels programs. See 28 U.S.C. 2462. Many records such as PTDs (e.g., bills of lading, invoices, etc.) and fuel production records should be kept by parties under normal business practice. Therefore, the recordkeeping requirements under the proposed requirements should impose little additional burden.

3(f) Confidentiality

We inform respondents that they may assert claims of CBI for information they submit. Any information claimed as confidential would be treated in accordance with 40 CFR part 2 and established EPA procedures. Information that is received without a claim of confidentiality may be made available to the public without further notice to the submitter under 40 CFR 2.203.

3(g) Sensitive Information

This information collection does not require submission of any sensitive information (e.g., social security numbers, dates of birth, etc.).

4. The Respondents and the Information Requested

4(a) Respondents with NAICS/SIC Codes

The respondents to this information collection fall into the following general industry categories: petroleum refineries (324110/2911), ethyl alcohol manufacturers (325193/2869), other basic organic chemical manufacturing (325110/2869), chemical and allied products merchant wholesalers (426990/5169), petroleum bulk stations and terminals (422710/5171), petroleum and petroleum products merchant wholesalers (422720/5172), and other fuel dealers (454319/5989).

Using the terminology associated with the RFS program and the proposed Renewables Enhancement and Growth Support (REGS) rule, we have assumed the following classes of party, which are covered by this supporting statement.

• Renewable fuel producers

• Obligated parties

• Biointermediate producers

• Biogas producers

• Blenders of viscous renewable diesel for blending (“VRD-B Blenders”)

• Producers of viscous renewable diesel for blending (“VRD-B Producers”)

• Producers of viscous renewable diesel for neat use (“VRD-N Producers”)

• Independent third-party engineers

• Independent third-party auditors

4(b) Information Requested

The respondents are subject to this collection to demonstrate compliance with the RFS program. For this purpose, the respondents are required to report to EPA, via CDX and the EPA Moderated Transaction System (“EMTS”).

(i) Data Items

General Requirements

All classes of respondents covered under this proposed ICR would have registration, reporting, and recordkeeping requirements. These requirements vary significantly depending on the specific activities engaged in by any given party.

Parties required to submit quarterly and annual reports would need to submit reports in accordance with existing the reporting schedules for the RFS program. The estimated burden tables in section 6(b) identify reporting forms associated with the specific proposed reporting requirements by party.

Respondents must retain underlying records related to reports they file for five (5) years. This period is consistent with other fuels programs and with customary business practices (CBP) for the industry. On request by the EPA, records must be made available; for electronic records, this includes equipment or software needed to read the electronic records. If requested by the EPA, electronic records shall be converted to paper documents.

The following paragraphs summarize the proposed requirements for each provision of the proposed REGS rule that we anticipate to have a collection burden. These proposed requirements are discussed in greater detail in the proposed rulemaking.

Biointermediates Program

Biointermediate producers would have to report fuel volumes used for reporting volumes of biointermediate feedstock in EMTS. The information submitted to the EPA during a company’s initial registration defines its roles, responsibilities, and participation in the EMTS environment. Biointermediate producers and importers are responsible for financing a yearly attest engagement or audit to verify their facilities. Biointermediate producers must also develop PTDs for the transfer of biointermediates to renewable fuel producers. Records related to registration, reporting, and product transfers would need to be kept for five (5) years. During the interim implementation program, biointermediate producers would be required to have an EPA-approved Quality Assurance Plan (QAP) for the production of biointermediate feedstock material. In this proposed collection, biointermediate producers and importers may also submit new pathway petitions for EPA approval. Forms and procedures for the registration and reporting of biointermediates would be similar to those already used by renewable fuel producers. Sample forms are included in the docket for the proposed rulemaking.

Carbon Capture and Storage

Renewable fuels producers that generate RINs under a CCS pathway would need to fulfill all registration, reporting, and recordkeeping requirements associated with participation in the RFS program. In addition to these requirements, renewable fuel producers that generate RINs under a CCS pathway would need to submit additional registration materials (e.g., a plan detailing how the producer intends to sequester CO₂ to meet RFS GHG threshold reductions), reporting, and recordkeeping related to the CO₂ sequestration. These renewable fuel producers would register with the EPA identically to renewable fuel producers covered under the existing regulations and the following collections: EPA ICR No. 2380.02, OMB Control Number 2060-0637 and EPA ICR No. 2333.03, OMB Control Number 2060-0640. However, additional reporting required of these renewable fuel producers would be on a form that would be covered under EPA ICR No. 2551.01. A copy of this proposed form is included in the docket.

Producers and Blenders of Viscous Renewable Diesel

The proposal contains new registration, reporting, and recordkeeping requirements for parties that generate RINs on vegetable oils (referred to viscous renewable diesel or VRD) that are used as transportation fuel, heating oil, or jet fuel. In cases where VRD is blended into diesel fuel to produce transportation fuel, heating oil, or jet fuel, the party that actually blends the VRD into the diesel fuel would generate RINs and thus need to register, submit reports, and keep records under the RFS program. The parties that produced the VRD for blending (“VRD-B”) would also need to register and report to the EPA. Parties that could demonstrate that neat VRD (“VRD-N”) was used as transportation fuel, heating oil, or jet fuel would have to satisfy additional registration, reporting, and recordkeeping requirements. Parties required to register and report VRD similar to a biointermediate producer or renewable fuel producer would use forms and procedures for those respective parties. A sample of the proposed forms for biointermediate producers are docketed and forms for renewable fuel producers are covered under the following collections: EPA ICR No. 2380.02, OMB Control Number 2060-0637 and EPA ICR No. 2333.03, OMB Control Number 2060-0640.

Short-Rotation Trees

In addition to satisfying all applicable requirements for renewable fuel producers under the RFS program, renewable fuel producers that generate RINs under the proposed short-rotation trees pathway would need to submit additional information during registration and keep additional records to help ensure that short-rotation trees allowed under this pathway qualify as renewable biomass. The EPA believes that such producers can use existing forms for reporting requirements. These registration and reporting requirements are outlined in the following collections: EPA ICR No. 2380.02, OMB Control Number 2060-0637 and EPA ICR No. 2333.03, OMB Control Number 2060-0640.

Breakdown of Renewable Volume Obligation (RVO) Constituents

The proposal would require that obligated parties report individually the constituents of their annual gasoline and diesel production, as defined in 40 CFR 80.1407(c). Obligated parties currently report the total production volume of gasoline and diesel combined to calculate their annual RVO. In addition to the fuels listed in 40 CFR 80.1407(c), obligated parties would also have to report total non-renewable heating oil production. Obligated parties report similar information in other EPA fuels program and this additional breakdown of gasoline and diesel production volumes would have a marginal increase in current reporting burdens. This proposed ICR includes the increased burden associated with the added data elements. The current burden associated with obligated parties’ annual compliance reports is covered under EPA ICR No. 2333.03, OMB Control Number 2060-0640.

Third-Party Engineer Requirements

Currently, renewable fuel producers are required to submit engineering review reports prepared by an independent third-party engineer to the EPA. This proposal would require that engineering review reports are submitted directly to the EPA by the independent third-party engineer. In addition to the direct submission of engineering review reports from third-party engineers to the EPA, third-party engineers would also need to register with the EPA and keep records related to performing the engineering review and submitting the engineering review report. A sample electronic engineering review report form is included in the docket.

Facility Ownership Changes

Renewable fuel production facilities undergo changes in ownership on a regular basis. The existing registration regulations for the RFS program do not outline specifically what documentation is required to affect the change in ownership. This proposal spells out what documentation would be needed to document a change in ownership and the process to update the registration information for the renewable fuel production facility.

Biogas Producers

The proposed rule would require that all producers of biogas would need to register, submit reports, and maintain records in addition to parties that generate RINs from biogas used to produce renewable electricity, CNG, or LNG. The current RFS requirements allow parties other than the biogas producer to register as the RIN generator. The proposal does not propose any new registration, reporting, and reporting requirements for biogas production and RIN generation, but would increase the number of parties required to register and report under the RFS program. Since most biogas producers are already registered as the RIN generator, the increased number of respondents as a result of this proposal is not expected to be substantial.

Redesignating Renewable Fuels

Under this proposal, parties that redesignate renewable fuels for uses other than transportation fuel, heating oil, jet fuel, or fuel for a stationary internal combustion engine would incur an obligation to retire RINs for the volume of renewable fuel redesignated. In order to fulfil this obligation, parties would need to register in CDX, submit reports demonstrating compliance with their obligation, keep records, and undergo an annual attest engagement. These requirements are consistent with those required for obligated parties and exporters that need to retire RINs for exported renewable fuels.

(ii) Respondent Activities

All respondents must be registered in the DCFUEL application to obtain a valid company number to sign up in CDX. In CDX, parties would submit facility registration corrections and updates and report fuel volumes used for buying and selling RINS in the EMTS. The information submitted to the EPA during a company’s initial registration defines its roles, responsibilities and participation in the EMTS environment. All parties that submit reports to the EPA are responsible for financing a yearly attest engagement or audit to verify their facilities.

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

5(a) Agency Activities

• All reports and registrations will be reviewed by the EPA for completeness and for potential violations.

• Potential violations will be referred to enforcement personnel.

• Registration numbers will be issued for new registrants.

• The EPA will contact reporting parties if there is a problem with their submission.

5(b) Collection Methodology and Management

The EPA will to continue to receive all reports, registrations, initial registrations, and updates. We anticipate receiving data in a simplified and secure fashion via CDX. Information claimed as CBI will be stored in appropriately controlled areas. The EPA will provide Guidance Documents, Report Instructions, and Report Templates at: https://www.epa.gov/fuels-registration-reporting-and-compliance-help/list-all-quarterly-and-annual-reports-renewable.

5(c) Small Entity Flexibility

This collection would not adversely affect small entities. The RFS program has flexibility provisions available to small entities. The flexibility provisions that are available to small entities are found in 40 CFR 80.1441 and 80.1442.

5(d) Collection Schedule

Registrations are received on a rolling basis. Updates may be sent in at any time after initial registration. New parties may enter the regulated industry at any time, triggering registration requirements. Reports are submitted to the EPA as needed or on a monthly, quarterly, or annual basis.

6. Estimating the Burden and Cost of Collection

6(a) Estimating the Respondent Universe

We drew upon experience implementing similar regulations among the same entities to develop estimates of the burden associated with this collection. When available, for example with independent third-party engineers, we used estimates based on the actual number of third-party engineers that had performed engineering reviews under the RFS program. In this collection, the EPA expects that there would be 366 parties affected by this collection. Many of the renewable fuel producers and obligated parties already participate in the RFS program and therefore should only marginally increase their burdens. The following parties are identified as part of this collection with the number of each category of respondent in parentheticals:

• Producers of biointermediates (40)

• Producers of renewable fuels that use biointermediates (40)

• Independent third-party auditors (5)

• Producers of VRD-B (10)

• Producers of renewable fuels from blending VRD-B into diesel (10)

• Producers of renewable fuels from VRD-N (2)

• Producers of biogas (25)

• Independent third-party engineers (70)

• Producers of renewable fuels that use a CCS pathway (2)

• Producers of renewable fuels that use short-rotation tree pathway (2)

• Parties that redesignate renewable fuels (10)

• Obligated Parties (150)

6(b) Estimating the Respondent Burden and Cost

Four labor categories are involved: managerial, technical, clerical, and legal. The estimates used the Bureau of Labor Statistics figures from “National Industry-Specific Occupational Employment & Wage Estimate: Petroleum and Coal Products Manufacturing” (March 2016). Using this method, the following wages and benefits apply by category:

Wages and Benefits

Managerial $57.20 per hour

Technical $52.99 per hour

Clerical $16.03 per hour

Legal $57.25 per hour

Doubling for company overhead beyond wages and benefits, and for convenience, rounding up to the dollar, gives the following rates for this ICR:

Total Employer Cost

Managerial $115.00 per hour

Technical $106.00 per hour

Clerical $33.00 per hour

Legal $115.00 per hour

It is assumed that for each hour of activity the mix will be about 0.05 hour managerial, 0.7 hour technical, 0.2 hour clerical, and 0.05 legal. This gives an average labor cost of $93 per hour (rounded up from $92.30), which will be used in this ICR. For purchased services related to attest engagements and some items of registration, we have doubled this hourly cost to $186 in order to more accurately reflect the cost of a certified public accountant (CPA) or licensed professional engineer's (PE) services.

We used a number of assumptions across all parties that would need to report under the REGS proposed rulemaking. For recordkeeping requirements, we assumed monthly (i.e., 12 responses per year) filing by clerical staff. This is consistent across all parties except for parties that have additional recordkeeping requirements as noted in the specific table below. For EMTS transaction reporting and the generation of PTDs, we assumed the daily production of a batch of biointermediates and renewable fuel (or 365 batches created each year) and the daily generation of RINs off of those batches (or 365 EMTS transactions each year). Since EMTS transactions are mostly automated, the burden associated with submitting reports to EMTS is minimal.

For the registration of biointermediate and renewable fuel producers, the estimated registration burden includes the contracting of an independent third-party engineer to perform an engineering review and the burden of the producer to submit relevant company and facility information in CDX. Attest engagements and QAP participation require purchased services of a CPA and independent third-party auditor respectively. Parties must submit prepared attest engagement reports to the EPA. Estimates for costs associated with purchased services are based on the EPA’s experience implementing burdens under the existing RFS requirements.

Annual Respondent Burden and Cost by Type of Party
Table 6(b).1 - Biointermediate Producers and Importers
Information Collection Activity		Hours and Cost				Total Hours and Cost					Applicable Form
Citation	Activity	Standard Industry Mix Hours/ Response	Clerical Only Hours/ Response	Purchased Services Hours/ Response	Total Cost/ Response (dollars)	Number of Respondents1	Number of Responses per party/year	Total Number of Responses per Year	Total Hours/ Year	Total Cost/Year
§80.1450(b)	Registration: Initial Registration	4	0	24	4,836	40	1	40	1,120	193,440	NA
§80.1450(d)	Registration: Registration Updates2	2	0	0	186	14	1	14	28	2,604	NA
§80.1451(i)	Reporting: Quarterly Reports	8	0	0	744	40	4	160	1,280	119,040	RFS4000, RFS0702, RFS0802
§80.1452	Reporting: EMTS Transaction Reporting3	0.1	0	0	9	40	365	14,600	1,460	135,780	NA
§80.1453(e)	Product Transfer Documents: Transfers of Biointermediates4	0	2	0	66	40	365	14,600	29,200	963,600	NA
§80.1454(n)	Recordkeeping: Records for Biointermediate Production	0	1	0	33	40	12	480	480	15,840	NA
§80.1464(j)	Attest Engagements: Annual Attest Engagement Report	1	0	24	4,557	40	1	40	1,000	182,280	NA
§80.1476	Quality Assurance Program: Biointermediate Producer QAPs	0	0	120	22,320	40	1	40	4,800	892,800	NA
§80.1477(i)	Recordkeeping: Records for Biointermediate Importers	0	1	0	33	5	12	60	60	1,980	NA
GRAND TOTAL						40		30,034	39,428	2,507,364

ASSUMPTIONS FOR TABLE 6(b).1

¹Assumes 35 new companies during first year of program plus 5 additional companies per year (averages to 40 companies per year over three year period).

²Assumes 33% of companies update registrations per year, rounded up to 14.

³EMTS transaction reporting assumes daily production and reporting of biointermediate (i.e., 365 responses per year).

⁴Expected PTD creation and transmittal are assumed to be higher for biointermediate producers since they have to provide more details about the biointermediate than other RFS PTD requirements.



Annual Respondent Burden and Cost by Type of Party
Table 6(b).2 - Renewable Fuel Producers that Use Biointermediates
Information Collection Activity		Hours and Cost				Total Hours and Cost					Applicable Forms
Citation	Activity	Standard Industry Mix Hours/ Response	Clerical Only Hours/ Response	Purchased Services Hours/ Response	Total Cost/ Response (dollars)	Number of Respondents1,2	Number of Responses per party/year	Total Number of Responses per Year	Total Hours/ Year	Total Cost/Year
§80.1450(b)	Registration: Initial Registration of Biointermediate Feedstocks	4	0	24	4,836	40	1	40	1,120	193,440	NA
§80.1450(d)	Registration: Registration Updates3	2	0	0	186	14	1	14	28	2,604	NA
§80.1452	Reporting: EMTS Transaction Reporting for Biointermediate Use	0.1	0	0	9	40	365	14,600	1,460	135,780	NA
§80.1454(b)	Recordkeeping: Records for Production of Renewable Fuels Using Biointermediates	0	1	0	33	40	12	480	480	15,840	NA
§80.1476	Quality Assurance Program: Biointermediate QAPs4	0	0	120	22,320	40	1	40	4,800	892,800	NA
GRAND TOTAL						40		15,174	7,888	1,240,464

ASSUMPTIONS FOR TABLE 6(b).2

¹Assumes all renewable fuel producers already participate in the RFS program; therefore, estimated burdens represent additional burden for renewable fuel producers that choose to use a biointermediate to produce renewable fuels.

²Assumes that each biointermediate has a corresponding renewable fuel producer; this is a conservative estimate since a more likely outcome is that a renewable fuel producer uses multiple biointermediate suppliers.

³Assumes 33% of companies update registrations per year, rounded up to 14.

⁴Renewable fuel producers that use biointermediates must have a QAP in place during the interim implementation period (roughly the first year of the program). This estimate does not assume that renewable fuel producers that are using biointermediates already have a QAP in place under the existing RFS program.

Annual Respondent Burden and Cost by Type of Party
Table 6(b).3 - Independent Third-Party Auditors
Information Collection Activity		Hours and Cost				Total Hours and Cost					Applicable Form
Citation	Activity	Standard Industry Mix Hours/ Response	Clerical Only Hours/ Response	Purchased Services Hours/ Response	Total Cost/ Response (dollars)	Number of Respondents1	Number of Responses per party/year	Total Number of Responses per Year	Total Hours/ Year	Total Cost/Year
§80.1476	Quality Assurance Plans: Biointermediate pathway specific plans2	40	0	0	3,720	5	7	35	1,400	130,200	NA
GRAND TOTAL						5		35	1,400	130,200

ASSUMPTIONS FOR TABLE 6(b).3

¹Currently there are only five independent third-party auditors and it is not likely that there will be more auditors in the near future.

²Assumes no additional burdens on independent third-party auditors other than the preparation and submission of pathway-specific plans for biointermediate production and use.

Annual Respondent Burden and Cost by Type of Party
Table 6(b).4 - VRD-B Producers
Information Collection Activity		Hours and Cost				Total Hours and Cost					Applicable Form
Citation	Activity	Standard Industry Mix Hours/ Response	Clerical Only Hours/ Response	Purchased Services Hours/ Response	Total Cost/ Response (dollars)	Number of Respondents1	Number of Responses per party/year	Total Number of Responses per Year	Total Hours/ Year	Total Cost/Year
§80.1450(b)	Registration: Initial Registration	4	0	24	4,836	10	1	10	280	48,360	NA
§80.1450(d)	Registration: Registration Updates2	2	0	0	186	4	1	4	8	744	NA
§80.1451(i)	Reporting: Quarterly Reports	8	0	0	744	10	4	40	320	29,760	RFS4000, RFS0702, RFS0802
§80.1452	Reporting: EMTS Transaction Reporting	0.1	0	0	9	10	365	3,650	365	33,945	NA
§80.1453(e)	Product Transfer Documents: Transfers of VRD-B	0	1	0	33	10	365	3,650	3,650	120,450	NA
§80.1454(n)	Recordkeeping: Records for VRD-B production	0	1	0	33	10	12	120	120	3,960	NA
§80.1464(j)	Attest Engagements: Annual Attest Engagement Report	1	0	24	4,557	10	1	10	250	45,570	NA
§80.1476	Quality Assurance Program: VRD-B Producer QAPs	0	0	120	22,320	10	1	10	1,200	223,200	NA
GRAND TOTAL						10		7,494	6,193	505,989

ASSUMPTIONS FOR TABLE 6(b).4

¹Estimate about 10 parties that generate RINs from VRD under existing regulations.

²Assumes 33% of companies update registrations per year, rounded up to 4.

Annual Respondent Burden and Cost by Type of Party
Table 6(b).5 - VRD-B Blenders
Information Collection Activity		Hours and Cost				Total Hours and Cost					Applicable Form
Citation	Activity	Standard Industry Mix Hours/ Response	Clerical Only Hours/ Response	Purchased Services Hours/ Response	Total Cost/ Response (dollars)	Number of Respondents1	Number of Responses per party/year	Total Number of Responses per Year	Total Hours/ Year	Total Cost/Year
§80.1450(b)	Registration: Initial Registration2	4	0	24	4,836	10	1	10	280	48,360	NA
§80.1450(d)	Registration: Registration Updates3	2	0	0	186	4	1	4	8	744	NA
§80.1451(b)	Reporting: Quarterly Reports	8	0	0	744	10	4	40	320	29,760	RFS4000
§80.1452	Reporting: EMTS Transaction Reporting4	0.1	0	0	9	10	365	3,650	365	33,945	NA
§80.1453(a)	Product Transfer Documents: Transfers of VRD-B5	0	1	0	33	10	365	3,650	3,650	120,450	NA
§80.1454	Recordkeeping: Records for VRD-B blending6	0	1	0	33	10	12	120	120	3,960	NA
§80.1464(b)	Attest Engagements: Annual Attest Engagement Report7	1	0	24	4,557	10	1	10	250	45,570	NA
GRAND TOTAL						10		7,484	4,993	282,789

ASSUMPTIONS FOR TABLE 6(b).5

¹Estimate about 10 parties that generate RINs from VRD under existing regulations. This means that, under the proposal, 10 additional parties would need to register as renewable fuel producers for VRD-B blending.

²The estimated initial registration burden includes the contracting of an independent third-party engineer to perform an engineering review and the burden of the producer to submit relevant company and facility information in CDX.

³Assumes 33% of companies update registrations per year, rounded up to 4.

⁴EMTS transaction reporting assumes daily generation of RINs on batches of VRD-B (i.e., 365 responses per year). Since EMTS transactions are mostly automated, the burden associated with submitting reports to EMTS is minimal.

⁵PTD creation assumes the production and transfer of a batch of VRD-B every day (i.e., 365 responses per year).

⁶Recordkeeping requirements assume monthly (i.e., 12 responses per year) filing.

⁷Attest engagements require purchased services of a CPA; however, party must also submit prepared attest engagement report to the EPA.

Annual Respondent Burden and Cost by Type of Party
Table 6(b).6 - VRD-N Producers
Annual Respondent Burden and Cost -- Viscous Renewable Diesel Neat Producers
Information Collection Activity		Hours and Cost				Total Hours and Cost					Applicable Form
Citation	Activity	Standard Industry Mix Hours/ Response	Clerical Only Hours/ Response	Purchased Services Hours/ Response	Total Cost/ Response (dollars)	Number of Respondents1	Number of Responses per party/year	Total Number of Responses per Year	Total Hours/ Year	Total Cost/Year
§80.1450(b)	Registration: Initial Registration2	4	0	24	4,836	2	1	2	56	9,672	NA
§80.1450(d)	Registration: Registration Updates3	2	0	0	186	1	1	1	2	186	NA
§80.1451(b)	Reporting: Quarterly Reports	8	0	0	744	2	4	8	64	5,952	RFS4000
§80.1452	Reporting: EMTS Transaction Reporting4	0.1	0	0	9	2	365	730	73	6,789	NA
§80.1453(a)	Product Transfer Documents: Transfers of VRD-N5	0	1	0	33	2	365	730	730	24,090	NA
§80.1454	Recordkeeping: Records for VRD-N production6	0	1	0	33	2	12	24	24	792	NA
§80.1464(b)	Attest Engagements: Annual Attest Engagement Report7	1	0	24	4,557	2	1	2	50	9,114	NA
§80.1469	Quality Assurance Program: Renewable Fuel Producer QAPs7	0	0	120	22,320	2	1	2	240	44,640	NA
GRAND TOTAL						2		1,499	1,239	101,235

ASSUMPTIONS FOR TABLE 6(b).6

¹Estimate about 2 parties that generate RINs from VRD-N under existing regulations.

²The estimated initial registration burden includes the contracting of an independent third-party engineer to perform an engineering review and the burden of the producer to submit relevant company and facility information in CDX.

³Assumes 33% of companies update registrations per year, rounded up to 1.

⁴EMTS transaction reporting assumes daily generation of RINs on batches of VRD-N (i.e., 365 responses per year). Since EMTS transactions are mostly automated, the burden associated with submitting reports to EMTS is minimal.

⁵PTD creation assumes the production and transfer of a batch of VRD-N every day (i.e., 365 responses per year).

⁶Recordkeeping requirements assume monthly (i.e., 12 responses per year) filing.

⁷Attest engagements and QAP participation require purchased services of a CPA and independent third-party auditor respectively; party must also submit prepared attest engagement report to the EPA.

Annual Respondent Burden and Cost by Type of Party
Table 6(b).7 - Biogas Producers
Information Collection Activity		Hours and Cost				Total Hours and Cost					Applicable Form
Citation	Activity	Standard Industry Mix Hours/ Response	Clerical Only Hours/ Response	Purchased Services Hours/ Response	Total Cost/ Response (dollars)	Number of Respondents1	Number of Responses per party/year	Total Number of Responses per Year	Total Hours/ Year	Total Cost/Year
§80.1450(b)	Registration: Initial Registration2	4	0	24	4,836	25	1	25	700	120,900	NA
§80.1450(d)	Registration: Registration Updates3	2	0	0	186	9	1	9	18	1,674	NA
§80.1451(i)	Reporting: Quarterly Reports	8	0	0	744	25	4	100	800	74,400	RFS 4000
§80.1452	Reporting: EMTS Transaction Reporting4	0.1	0	0	9	25	365	9,125	913	84,863	NA
§80.1454(k)	Recordkeeping: Records for Biogas Production5	0	1	0	33	25	12	300	300	9,900	NA
§80.1464(j)	Attest Engagements: Annual Attest Engagement Report6	0	0	24	4,464	25	1	25	600	111,600	NA
GRAND TOTAL						25		9,584	3,331	403,337

ASSUMPTIONS FOR TABLE 6(b).7

¹Estimate about 25 parties produce biogas under the existing regulations would need to register with the EPA. The other biogas producers are already registered as RIN generators.

²The estimated initial registration burden includes the contracting of an independent third-party engineer to perform an engineering review and the burden of the producer to submit relevant company and facility information in CDX.

³Assumes 33% of companies update registrations per year, rounded up to 9.

⁴EMTS transaction reporting assumes daily generation of RINs on batches of biogas (i.e., 365 responses per year). Since EMTS transactions are mostly automated, the burden associated with submitting reports to EMTS is minimal.

⁵Recordkeeping requirements assume monthly (i.e., 12 responses per year) filing.

⁶Attest engagements require purchased services of a CPA; party must also submit prepared attest engagement report to the EPA.

Annual Respondent Burden and Cost by Type of Party
Table 6(b).8 - Third-Party Engineers
Information Collection Activity		Hours and Cost				Total Hours and Cost					Applicable Form
Citation	Activity	Standard Industry Mix Hours/ Response	Clerical Only Hours/ Response	Purchased Services Hours/ Response	Total Cost/ Response (dollars)	Number of Respondents1	Number of Responses per party/year	Total Number of Responses per Year	Total Hours/ Year	Total Cost/ Year
§80.1450(h)	Registration: Initial Registration2	8	0	0	744	70	1	70	560	52,080	NA
§80.1450(h)(10)	Registration: Registration Updates3	1	0	0	93	24	1	24	24	2,232	NA
§80.1450(b)(2) and (d)(3)	Reporting: Engineering Review Reports4	40	0	0	3,720	70	5	350	14,000	1,302,000	Electronic ER Form
§80.1450(d)(1) and (d)(4)	Reporting: Engineering Review Addendums	8	0	0	744	20	1	20	160	14,880	NA
GRAND TOTAL						70		464	14,744	1,371,192

ASSUMPTIONS FOR TABLE 6(b).8

¹Over the past three years, about 70 different third-party engineers have performed engineering reviews for renewable fuel producers under the RFS program. Assume that this number stays flat in the near term.

²Engineering review reporting burden is based on the estimated time to perform the engineering review and prepare and submit the engineering review report to the EPA.

³Assumes 33% of companies update registrations per year, rounded up to 24.

⁴A sample electronic engineering review report is included in the docket entitled, “Sample Electronic Engineering Review Report Form.”

Annual Respondent Burden and Cost by Type of Party
Table 6(b).9 - Renewable Fuel Producers using CCS
Information Collection Activity		Hours and Cost				Total Hours and Cost					Applicable Form
Citation	Activity	Standard Industry Mix Hours/ Response	Clerical Only Hours/ Response	Purchased Services Hours/ Response	Total Cost/ Response (dollars)	Number of Respondents1	Number of Responses per party/year	Total Number of Responses per Year	Total Hours/ Year	Total Cost/Year
§80.1450(b)(1)	Registration: Initial Registration	4	0	24	4,836	2	1	2	56	9,672	NA
§80.1450(b)(1)(xvi)	Registration: Additional CCS Initial Registration Info2	2	0	0	186	2	1	2	4	372	NA
§80.1450(d)(2)	Registration: Registration Updates3	2	0	0	186	1	1	1	2	186	NA
§80.1451(b)	Reporting: Quarterly Reports	8	0	0	744	2	4	8	64	5,952	NA
§80.1451(b)(1)(W)	Reporting: Additional CCS Quarterly Reports4	8	0	0	744	2	4	8	64	5,952	RFS2500
§80.1452	Reporting: EMTS Transaction Reporting	0.1	0	0	9	2	365	730	73	6,789	NA
§80.1453(a)	Product Transfer Documents: Transfers of renewable fuel5	0	1	0	33	2	365	730	730	24,090	NA
§80.1454(b)	Recordkeeping: Records for renewable fuel production	0	1	0	33	2	12	24	24	792	NA
§80.1454(b)(11)	Recordkeeping: Additional Records for CCS6	0	1	0	33	2	12	24	24	792	NA
§80.1464(b)	Attest Engagements: Annual Attest Engagement Report	1	0	24	4,557	2	1	2	50	9,114	NA
GRAND TOTAL						2		1,531	1,091	63,711

ASSUMPTIONS FOR TABLE 6(b).9

¹Estimate number of respondents based on the expressed interest of two parties who are capable under RFS regulations and interested in using CCS technology to generate advanced (D5) RINs.

²Initial registration for renewable fuels producers using a CCS pathway would be similar to producers covered under the existing RFS provisions. However, due to additional information required specific to the use of a CCS pathway, these producers would have a slightly greater burden.

³Assumes 33% of companies update registrations per year, rounded up to 1.

⁴Quarterly periodic and EMTS reporting requirements for renewable fuel producers using a CCS pathway would be identical to other renewable fuel producers in the RFS program. Producers using CCS would also need to submit an additional form (draft form RFS2500).

⁵Producers using CCS would need to generate PTDs and maintain records for renewable fuel production identically to renewable fuel producers under the existing RFS program requirements.

⁶Producers using CCS would need to keep additional records related to the use of CCS technology. Recordkeeping requirements assume monthly (i.e., 12 responses per year) filing.

Annual Respondent Burden and Cost by Type of Party
Table 6(b).10 - Renewable Fuel Producers using SRT Pathway
Information Collection Activity		Hours and Cost				Total Hours and Cost					Applicable Form
Citation	Activity	Standard Industry Mix Hours/ Response	Clerical Only Hours/ Response	Purchased Services Hours/ Response	Total Cost/ Response (dollars)	Number of Respondents1	Number of Responses per party/year	Total Number of Responses per Year	Total Hours/ Year	Total Cost/Year
§80.1450(b)(1)	Registration: Initial Registration	4	0	24	4,836	2	1	2	56	9,672	NA
§80.1450(b)(1)(xviii)	Registration: Additional SRT Registration Information2	2	0	0	186	2	1	2	4	372	NA
§80.1450(d)(2)	Registration: Registration Updates3	2	0	0	186	1	1	1	2	186	NA
§80.1451(b)(1)	Reporting: Quarterly Reports4	8	0	0	744	2	4	8	64	5,952	NA
§80.1452	Reporting: EMTS Transaction Reporting	0.1	0	0	9	2	365	730	73	6,789	NA
§80.1453(a)	Product Transfer Documents: Transfers of renewable fuel5	0	1	0	33	2	365	730	730	24,090	NA
§80.1454(b)	Recordkeeping: Records for renewable fuel production	0	1	0	33	2	12	24	24	792	NA
§80.1454(p)	Recordkeeping: Additional Records for SRT6	0	1	0	33	2	12	24	24	792	NA
§80.1464(b)	Attest Engagements: Annual Attest Engagement Report	1	0	24	4,557	2	1	2	50	9,114	NA
GRAND TOTAL						2		1,523	1,027	57,759

ASSUMPTIONS FOR TABLE 6(b).10

¹Estimate number of respondents based on two parties that have expressed interest in the SRT pathway.

²Initial registration for renewable fuels producers using the SRT pathway would be similar to producers covered under the existing RFS provisions. However, due to additional information required specific to the use of the SRT pathway, these producers would have a slightly greater burden.

³Assumes 33% of companies update registrations per year, rounded up to 1.

⁴Quarterly periodic and EMTS reporting requirements for renewable fuel producers using the SRT pathway would be identical to other renewable fuel producers in the RFS program.

⁵Producers using the SRT pathway would need to generate PTDs and maintain records for renewable fuel production identically to renewable fuel producers under the existing RFS program requirements.

⁶Producers using CCS would need to keep additional records related to the use of the use of SRT feedstocks. Recordkeeping requirements assume monthly (i.e., 12 responses per year) filing.





Annual Respondent Burden and Cost by Type of Party
Table 6(b).11 - Intended Use Obligated Parties
Information Collection Activity		Hours and Cost				Total Hours and Cost					Applicable Form
Citation	Activity	Standard Industry Mix Hours/ Response	Clerical Only Hours/ Response	Purchased Services Hours/ Response	Total Cost/ Response (dollars)	Number of Respondents1	Number of Responses per party/year	Total Number of Responses per Year	Total Hours/ Year	Total Cost/Year
§80.1450(a)(1)	Registration: Initial Registration	8	0	0	744	10	1	10	80	7,440	NA
§80.1450(d)(2)	Registration: Registration Updates2	2	0	0	186	4	1	4	8	744	NA
§80.1451(a)	Reporting: Annual Compliance Reports3,4	1.5	0	0	140	10	1	10	15	1,395	RFS0305
§80.1452	Reporting: EMTS Transactional Reporting	0.1	0	0	9	10	365	3,650	365	33,945	NA
§80.1454(a)	Recordkeeping: Records for Redesignation Obligations	0	1	0	33	10	12	120	120	3,960	NA
§80.1464(a)	Attest Engagements: Annual Attest Engagement Report	1	0	24	4,557	2	1	2	50	9,114	NA
GRAND TOTAL						10		3,796	638	56,598

ASSUMPTIONS FOR TABLE 6(b).11

¹Estimate that there would be approximately 10 parties that incur an obligation to retire RINs from redesignating renewable fuels each year.

²Assumes 33% of companies update registrations per year, rounded up to 4.

³Annual compliance reports for these parties are identical as those for obligated parties and exporters of renewable fuel under existing RFS program requirements.

⁴See docketed sample form entitled, “RFS305” for a sample of the annual compliance report.

Annual Respondent Burden and Cost by Type of Party
Table 6(b).12 - Obligated Parties
Information Collection Activity		Hours and Cost				Total Hours and Cost					Applicable Form
Citation	Activity	Standard Industry Mix Hours/ Response	Clerical Only Hours/ Response	Purchased Services Hours/ Response	Total Cost/ Response (dollars)	Number of Respondents1	Number of Responses per party/year	Total Number of Responses per Year	Total Hours/ Year	Total Cost/Year
§80.1451(a)(1)	Reporting: Annual Compliance Reports2	0.5	0	0	47	150	1	150	75	6,975	RFS305
GRAND TOTAL						150		150	75	6,975

ASSUMPTIONS FOR TABLE 6(b).12

¹Estimate the number of obligated parties based on the number of parties that currently submit annual compliance reports.

²The estimated burden for annual compliance reports represents the increased burden associated with the proposed rulemaking.

Annual Respondent Burden and Cost by Type of Party
Table 6(b).13 - Summary of ICR Burden
Party Type	Number of Respondents	Total Number of Responses per Year	Total Hours/ Year	Average Annual Respondent Burden in Hours	Total Cost/Year
Biointermediate Producers	40	30,034	39,428	986	$2,507,364
Renewable Fuel Producers using Biointermediates	40	15,174	7,888	197	$1,240,464
Third-Party Auditors	5	35	1,400	280	$130,200
VRD-B Producers	10	7,494	6,193	619	$505,989
VRD-B Blenders	10	7,484	4,993	499	$282,789
VRD-N Producers	2	1,499	1,239	620	$101,235
Biogas Producers	25	9,584	3,331	133	$403,337
Third-Party Engineers	70	464	14,744	211	$1,371,192
Renewable Fuel Producers using CCS	2	1,531	1,091	546	$63,711
Renewable Fuel Producers using SRT	2	1,523	1,027	514	$57,759
Intended Use Obligated Parties	10	3,796	638	64	$56,598
Obligated Parties	150	150	75	1	$6,975
GRAND TOTAL	366	78,768	82,047	224	$6,727,613

6(c) Estimating the Agency Burden and Costs

The EPA would generate company and facility registration number(s) for new registrants and notify them of these numbers, which would appear on reports. Report formats and instructions/guidance would be prepared by EPA personnel. Reports would be processed by contractors and must be reviewed by EPA personnel using automated processes to the greatest extent practical. Reporting parties would be contacted if there is a problem with their submission. We would have to develop forms for the reporting requirements for many of the parties covered in the proposed rulemaking. We have provided sample reporting templates as an attachment to this document in the docket for the proposed rulemaking.

This supporting statement considers all EPA costs associated with accepting new registrants and new reports associated with the proposed REGS rule. Using the RFS-related ICRs as a guide in developing these initial estimates, we anticipate that the REGS proposed rule would require the equivalent labor of one full time GS-13 technical employees for a total of $192,000, and labor costs of $91,000 in the clerical category and $32,000 in the management category.⁶

Since we are using CDX, some costs incurred by the EPA will be tied to the number of registrants who send us reports. Specifically, there is an annual "subscription cost" associated with the use of CDX that is passed on to the EPA program office and we estimate that registrants due to the RFS program would increase by approximately $100,000 per year as a result of the REGS proposed rule. We anticipate an increase of $90,000 in annual contract costs related to registration and reporting activities related to the RFS program. We anticipate IT development and testing costs at $1,800,000 divided by three years to yield an annual cost of $600,000. Adding the following values results in an annual estimated EPA burden as follows:

One GS-13 technical employee (full time) = $ 192,000

One GS-7 clerical worker (full-time) = 91,000

One GS-15 manager (1/8 time) = 32,000

Annual CDX subscription fee = 100,000

Annual contract costs = 90,000

Testing and development= 600,000

TOTAL = $ 1,105,000

As with all items in this supporting statement, we strongly encourage comment on the estimated EPA burden and on the EPA activities associated with this proposed information collection.

6(d) Estimating the Respondent Universe

We estimated the number of regulated entities for this proposed ICR by drawing upon our experience regulating the same or similar entities under the RFS program. Where possible, we used estimates based on parties that have expressed interest in a particular portion of the proposed REGS rule.

6(e) Bottom Line Burden Hours and Costs

From the tables, we estimate the following annual totals:

TOTAL NO. OF RESPONDENTS:	366
TOTAL NO. OF RESPONSES:	78,768
TOTAL BURDEN HOURS:	82,047
TOTAL COST TO RESPONDENTS:	$6,727,613

6(f) Burden Statement

Because the universe of respondents covered under this proposed ICR is quite diverse, there is no “typical” respondent. Table 6(b).13 presents the average annual respondent burden for each respondent by activity covered in the proposed REGS rule. The annual burden is estimated to average between 1 and 986 hours per respondent, depending on the information collection requirements of the particular party. The average annual burden across all parties is 224 hours, and the average number of hours per response is estimated to be approximately 1 hour.

Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or provide information to or for a Federal agency. This includes the time needed to review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. The OMB control numbers the EPA’s regulations are listed in 40 CFR part 9 and 48 CFR chapter 15.

To comment on the EPA’s need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including the use of automated collection techniques, EPA has established a public docket for this ICR under Docket ID No. EPA-HQ-OAR-2016-0041, which is available for online viewing at www.regulations.gov, or in-person viewing at the Air and Radiation Docket and Information Center in the EPA Docket Center (EPA/DC). The docket is located in the William Jefferson Clinton Building West, 1301 Constitution Avenue, NW, Room 3334, Washington, DC, and is open from 8:30 a.m. to 4:30 p.m., Eastern Standard Time, Monday through Friday, excluding legal holidays. The telephone number for the Reading Room is (202) 566-1744, and the telephone number for the Air and Radiation Docket and Information Center is (202) 566-1742.

An electronic version of the public docket is available at www.regulations.gov. This site can be used to submit or view public comments, access the index listing of the contents of the public docket, and to access those documents in the public docket that are available electronically. When in the system, select “search,” then key in the Docket ID No. identified above. Also, you can send comments to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, D.C. 20503, Attention: Desk Officer for EPA. Please include the EPA Docket ID No. EPA-HQ-OAR-2016-0041 and OMB Control Number 2060-AS66 in any correspondence.

1 The White House, “The President’s Climate Action Plan,” June 2013, http://www.whitehouse.gov/share/climate-action-plan.

2 The White House, “U.S. Leadership and the Historic Paris Agreement to Combat Climate Change,” December 2015, http://www.whitehouse.gov/the-press-office/2015/12/12/us-leadership-and-historic-paris-agreement-combat-climate-change.

3 The White House, “Improving the Fuel Efficiency of American Trucks—Bolstering Energy Security, Cutting Carbon Pollution, Saving Money and Supporting Manufacturing Innovation,” p. 2, February 2014, http://www.whitehouse.gov/sites/default/files/docs/finaltrucksreport.pdf.

4 U.S. EPA, “Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990–2012,” EPA 430-R-14-003, April 2014, http://www.epa.gov/climatechange/Downloads/ghgemissions/US-GHG-Inventory-2014-Main-Text.pdf.

5 While we are not proposing to add a generally applicable CCS technology to an approved pathway in the RFS regulations, we do believe it is appropriate to propose the necessary registration, recordkeeping, and reporting requirements that would generally govern the use of CCS if and when such a pathway is approved.

6 These estimates are derived from "OPM Salary Table 2016-DCB," effective January 2016. This table may be found at https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2016/DCB.pdf. The extreme of step 10 was assumed for all categories. We have assumed a full-time GS-7 clerical worker, one full-time GS-13 technical worker, and a GS-15 manager working one-eighth of his/her time managing this project (0.125). All values were multiplied by 1.6 (which is a common factor utilized in ICRs to account for overhead costs). We rounded the resulting dollar value to the nearest thousand. This cost is per year.

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