United States Environmental Protection Agency
EPA
Office of Air Quality Planning and Standards
Air Quality Policy Division
New Source Review Group
October 2007 Amended
July 2008
August, 2003
PREVENTION OF SIGNIFICANT
DETERIORATION AND NONATTAINMENT NEW SOURCE REVIEW (40 CFR PARTS 51
AND 52) (Final Rule for Implementation of the New Source Review (NSR)
Program for Particulate Matter Less Than 2.5 Micrometers
(PM2.5)
E
EPA # 1230.21
Executive Summary
The major NSR program is a preconstruction review and permitting program for new major sources of air pollutants and major modifications at existing major sources. The types of information collection activities associated with the major NSR program are those necessary for the preparation and submittal of construction permit applications and the issuance of final permits. The major NSR rule changes addressed in this ICR add PM2.5 and its precursors to the list of pollutants that must be addressed in a major NSR permit action, but do not otherwise change the requirements of the program.
This Information Collection Request (ICR) (OMB Control Number 2060-0003; EPA ICR Number 1230.21) is a revision of the existing ICR for the NSR program The purpose of this ICR is to show the change in burden and cost associated with the PM2.5 NSR Implementation rule. Table E-1 summarizes the overall change in burden and cost for respondents – sources who must obtain major NSR permits and State and local agencies who issue the permits (called “reviewing authorities”). The totals in Table E‑1 represent an increase of about 9 percent in average annual burden and about 11 percent in average annual cost relative to the major NSR totals in the currently approved ICR. Relative to the entire currently approved ICR (which includes minor NSR as well as major NSR), the increase is about 1 percent in average annual burden and about 1.5 percent in average annual cost.
TABLE E-1 CHANGE IN BURDEN FOR RESPONDENTS RELATIVE TO JANUARY 2005 ICR RESULTING FROM PM2.5 NSR IMPLEMENTATION RULE |
||||
Type of Entity |
Change in Average Annual Burden (Hours) |
Change in Average Annual Burden per Entity (Hours) |
Change in Average Annual Cost ($ 2004)c |
Change in Average Annual Cost per Entity ($ 2004) |
Sourcesa Reviewing Authoritiesb |
38,875 16,107 |
52 144 |
$4,268,991 $701,152 |
$5,669 $6,260 |
Total |
54,982 |
N/A |
$4,970,143 |
N/A |
a We estimate 753 major NSR permits each year (265 PSD permits and 488 NA NSR permits).
b We assume that there are 112 State and local reviewing authorities.
c The costs to sources include $1,722,678 in start-up costs for pre-construction monitoring. The remaining $2,546,313 for sources and all the costs for reviewing authorities are labor costs associated with the increase in burden.
CONCLUSION:
This rulemaking represents a
POTENTIAL
INCREASE IN BURDEN
to sources and Reviewing Authorities related to permit actions.
This rulemaking represents a
ONE-TIME
INCREASE IN BURDEN
to States and other Reviewing Authorities to revise SIPs.
Because the major NSR program
rarely affects small entities, the Agency determined this rulemaking
represents NO
SIGNIFICANT IMPACT ON A SUBSTANTIAL NUMBER OF SMALL ENTITIES.
CAVEAT: This analysis overstates the impact of the rulemaking over the next 3 years because it has been prepared as if the rule revisions would be fully implemented upon the effective date of the rule. In actuality, the full effect of the PSD program for PM2.5 lags the promulgation of this rulemaking due to the time needed for States with approved PSD programs to modify their State Implementation Plans (SIPs).
The title of this ICR is “Prevention of Significant
Deterioration and N
EPA
TRACKING NUMBER:
1230.21 OMB
CONTROL NUMBER:
2060-0003
1 Identification of the
Information Collection 1.1 Title
TRACKING NUMBER: 1230.19 formation
Collection 1.1 Title
EPA
TRACKING NUMBER:
1713.05 OMB
TRACKING NUMBER:
2060-0336 formation
Collection 1.1 Title
EPA
TRACKING NUMBER:
1713.05 OMB
TRACKING NUMBER:
2060-0336 formation
Collection 1.1 Title
EPA
TRACKING NUMBER:
1713.05 OMB
TRACKING NUMBER:
2060-0336
OMD1.2 Description
OMD1.2 Description
OMD1.2 Description
2
1.1 Title
1.2 Description
In 1997, EPA promulgated NAAQS for PM2.5 to address fine particle pollution, while retaining the NAAQS for particulate matter with an aerodynamic diameter less than or equal to a nominal 10 micrometers (PM10) to address coarse particle pollution. After delays associated with litigation over the NAAQS and with building up technical capacity to address PM2.5, we are proceeding with implementation of the PM2.5 program, including implementation of the PM2.5 NSR program.
This ICR addresses changes to the major NSR program to add PM2.5 to both PSD and NA NSR. For some sources, this will add to the burden of obtaining major NSR permits because it will add to the number of pollutants that must be addressed in the application process. Similarly, State and local reviewing authorities will incur increased burden to review such permit applications and issue the permits.1 In addition, reviewing authorities will incur a one-time burden to revise their implementation plans to incorporate the PSD and NA NSR changes.
T
2.1 Need / Authority for the
Collection
2 Need For and Use of
Collection
2.2 Practical Utility / Users of
the Data
2.3 Caveats and Considerations
Throughout this ICR, the reader will observe estimated values that show accuracy to the single hour or dollar. However, reporting values at the single unit level can be misleading. In most situations, the proper way to present estimated data would be to determine an appropriate level of precision and truncate values accordingly, usually in terms of thousands or millions of units. For instance, a spreadsheet generated estimation of $5,456,295 could be presented in the text as $5.5 (millions) or $5,456 (thousands). One problem with such an approach is the loss of data richness when the report contains a mixture of very large and very small numbers. Such was the case with this ICR, where source values are consistently in the millions and federal and State values in the tens of thousands. Consequently, to avoid the loss of information through rounding, this ICR reports all values at the most meaningful unit level for the range of values being presented and reminds the reader that there is no implied precision inherent in this style of reporting.
For approval of a proposed ICR, the Agency must ensure that it has taken every reasonable step to avoid duplication in its paperwork requirements in accordance with 5 CFR 1320.9. Although the reviewing authorities will be required to revise a State’s SIP, this action imposes no new paperwork requirements.
3 Non-Duplication, Consultation,
and Other Collection Criteria
3.1 Non-Duplication
3.2 Public Notice Requirements
A notice soliciting public comment was published in the Federal Register on May 18, 2007 (72 FR 28041). A 60-day public comment period was provided for this ICR, during which all affected parties were given the opportunity to comment on the burden analysis. No substantive comments on the ICR were received.
3.3 Consultations
3.4 Less Frequent Collection
The Act defines the rate of reporting by sources, States, and local entities. Consequently, less frequent collection is not possible.
3.5 General Guidelines
OMB’s general guidelines for information collections must be adhered to by all Federal Agencies for approval of any rulemaking’s collection methodology. In accordance with the requirements of 5 CFR 1320.5, the Agency believes:
1. The NSR regulations do not require periodic reporting more frequently than semi-annually.
2. The NSR regulations do not require respondents to participate in any statistical survey.
3. Written responses to Agency inquiries are not required to be submitted in less than 30 days.
4. Special consideration has been given in the design of the NSR program to ensure that the requirements are, to the greatest extent possible, the same for Federal requirements and those reviewing authorities who already have NSR construction permitting programs in place.
5. Confidential, proprietary, and trade secret information necessary for the completeness of the respondent’s permit are protected from disclosure under the requirements of section 114(c) of the Act.
6. The NSR regulations do not require more that one original and two copies of the permit application, update, or revision to be submitted to the Agency.
7. Respondents do not receive remuneration for the preparation of reports required by the Act or parts 51 or 52.
8. To the greatest extent possible, the Agency has taken advantage of automated methods of reporting.
9. The Agency believes the impact of NSR regulations on small entities to be insignificant and not disproportionate.
The recordkeeping and reporting requirements contained in the current NSR program and the changes in this rulemaking do not exceed any of the Paperwork Reduction Act guidelines contained in 5 CFR 1320.5, except for the guideline which limits retention of records by respondents to 3 years. The Act requires both respondents and State or local agencies to retain records for a period of 5 years. The justification for this exception is found in 28 U.S.C. 2462, which specifies 5 years as the general statute of limitations for Federal claims in response to violations by regulated entities. The decision in U.S. v. Conoco, Inc., No. 83-1916-E (W.D. Okla., January 23, 1984) found that the 5-year general statute of limitations applies to the Clean Air Act.
3.6 Confidentiality
Confidentiality is not an issue for this rulemaking. In accordance with the Clean Air Act Amendments of 1990, the monitoring information to be submitted by sources as a part of their major NSR permit application is a matter of public record. To the extent that the information required is proprietary, confidential, or of a nature that could impair the ability of the source to maintain its market position, that information is collected and handled subject to the requirements of section 114(c) of the Act. Information received and identified by owners or operators as confidential business information (CBI) and approved as CBI by EPA, in accordance with Title 40, Chapter 1, Part 2, Subpart B, shall be maintained appropriately (see 40 CFR 2; 41 FR 36902, September 1, 1976; amended by 43 FR 39999, September 8, 1978; 43 FR 42251, September 28, 1978; 44 FR 17674, March 23, 1979).
3.7 Sensitive
Questions
3.8 Environmental Justice
Considerations
4 The Respondents and the
Information Requested
4.1 Respondents/SIC and NAICS
Codes
Table 4-1. Most Numerous Industrial Respondents by Industrial Group
Industry Group |
SIC |
NAICS |
Electric Services |
491 |
221111, 221112, 221113, 221119, 221121, 221122 |
Petroleum Refining |
291 |
32411 |
Industrial Inorganic Chemicals |
281 |
325181, 32512, 325131, 325182, 211112, 325998, 331311, 325188 |
Industrial Organic Chemicals |
286 |
32511, 325132, 325192, 325188, 325193, 32512, 325199 |
Miscellaneous Chemical Products |
289 |
32552, 32592, 32591, 325182, 32551 |
Natural Gas Liquids |
132 |
211112 |
Natural Gas Transport |
492 |
48621, 22121 |
Pulp Mills |
261 |
32211, 322121, 322122, 32213 |
Paper Mills |
262 |
322121, 322122 |
Automobile Manufacturing |
371 |
336111, 336112, 336712, 336211, 336992, 336322, 336312, 33633, 33634, 33635, 336399, 336212, 336213 |
Pharmaceuticals |
283 |
325411, 325412, 325413, 325414 |
The respondents also include State and local air regulatory agencies. Because of the national scope of the NSR program, these governmental respondents are in all 50 States.
4.2 Information Requested
This section discusses the data items that must be collected and reported and the activities that respondents must carry out under the major NSR program.
4.2.1 Data items, including
recordkeeping requirements
http://www.epa.gov/epacfr40/chapt-I.info/chi-toc.htm
Respondent data and information requirements can be found in the Supporting Statement for the 2005 ICR renewal for the major NSR program (ICR #1230.17), including appropriate references in 40 CFR part 51 for the data and information requirements that govern the way States implement NSR programs.2
4.2.2 Respondent activities
Tables 6-1 and 6-2 list (for source and reviewing authority respondents, respectively) the activities and associated burden for major NSR permitting. For each activity, the tables give the baseline burden (based on the 2005 ICR renewal), the estimated burden upon implementation of the PM2.5 NSR Implementation rule, and the incremental burden due to the rule.
For source respondents, the activities are divided into three broad categories: (1) preparation and planning, (2) data collection and analysis, and (3) permit application. Each of these categories is further subdivided into individual activities.
Reviewing authority respondents’ activities involve interacting with the source during its preparation of an application, reviewing the application and making a determination, implementing the public notice and comment process, issuing the permit, and transmitting information to EPA. In addition to the activities associated with reviewing and issuing major NSR permits under the revised regulations, reviewing authority respondents will have to revise their SIPs to add PM2.5 and its precursors to their major NSR programs.
5 The Information Collected -
Agency
Activities, Collection Methodologies, and Information Management
5.1 Agency Activities
5.2 Collection
Methodology and Management
The reviewing authority reviews the permit application and checks the quality of data submitted by the applicant on a case-by-case basis. The applicant will be required to submit information on how the data were obtained (e.g., indicate whether emissions data were obtained through the use of emissions factors or test data) and how the calculations were performed. The reviewing authority personnel will check data quality by reviewing test data and checking engineering calculations, and by reviewing control technology determinations for similar sources. The RBLC and other sources will be reviewed for information on control technology determinations made for sources similar to the sources included in the permit application. Confidential information submitted by the applicant will be handled by the reviewing authority’s confidential information handling procedures. The public will be provided the opportunity to review a permit application and other materials relevant to the reviewing authority’s decision on issuing the permit, including FLM findings, by obtaining a copy from the permit reviewing authority or by attending the public hearing. The NSR regulations will not require information through any type of survey.
5.3 Small Entity Flexibility
A Regulatory Flexibility Act Screening Analysis (RFASA) developed as part of a 1994 draft Regulatory Impact Analysis (RIA) and incorporated into the September 1995 ICR renewal analysis reported an initial regulatory flexibility screening analysis showed that the changes to the NSR program due to the 1990 Clean Air Act amendments would not have an adverse impact on small entities.3 This analysis encompassed the entire universe of applicable major sources that were likely to also be small businesses. The Agency estimates there are approximately 50 “small business” major sources.4 Because the administrative burden of the NSR program are the primary source of the NSR program’s regulatory costs, the analysis estimated a negligible “cost to sales” (regulatory cost divided by the business category mean revenue) ratio for this source group. Currently, there is no economic basis for a different conclusion at this time.
5.3.1 Measures to avert impacts
on small entities
The Agency may not, under any circumstances, exempt a major source of air pollution from the requirements of major NSR. Since the impacts of major NSR regulations which may impact small entities occur predominantly at major sources, little room exists for regulatory flexibility to avert the impact of the proposed rulemaking on small entities through exemption.
Even
though the major NSR program does not have an adverse impact on a
significant number of small businesses, EPA takes measures to assist
sources in affected small entities through the implementation of
small business stationary source technical and environmental
compliance assistance programs, as called for in section 507 of the
Act. These programs reduce the reporting burden of small entities
that are subject to major NSR and may significantly alleviate the
economic burden on small sources by (1) establishing programs to
assist small businesses with determining what Act requirements apply
to their sources and when they apply, and (2) providing guidance on
alternative control technology and pollution prevention for small
businesses.
5.3.2 Measures to mitigate
impacts on small entities
5.4 Collection Schedule
6 Estimating the Burden and Cost
of the Collection
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; and transmit or otherwise disclose the information. In addition to the labor hours expended by the respondents, the burden estimate should include: (1) total capital and start-up costs annualized over the useful life of the purchased equipment, and (2) total costs for operation, maintenance, and purchases of services. Each component should be divided into burden borne directly by the respondent and any services that are contracted out.
This section discusses the development of burden estimates and their conversion into costs, which are separated into burden costs and capital and operating and maintenance (O&M) costs. According to the latest guidance for ICRs (EPA 2005), capital and O&M costs display the cost of any new capital equipment the source or reviewing authority may have to purchase solely for information collection, assimilation, and storage purposes. For example, if a source had to purchase a new computer to store and manipulate data, that computer would be a cost of administration subject to reporting in the ICR. In addition, the latest guidance instructs the Agency to differentiate the burden associated with a source’s labor and that which it hires through outside contractors. To the extent a source contracts out for administrative purposes (e.g., employing consultants to perform monitoring functions), the burden associated with those contracted tasks are not a burden to the source - but they still remain a cost. The reader should read this section with the following considerations in mind:
• The Agency believes the time necessary to perform a task is independent of the origins of its labor. In other words, if a source would employ 20 hours of burden to fully perform a function, then a contractor hired by the source would also take 20 hours to perform that same task. Furthermore, the Agency assumes no economies or diseconomies of scale. The linear combination of any amount of contractor and source effort will also sum to 20. Therefore, the burden estimates in this ICR act as an accurate assessment of the total burden to affected sources and reviewing authorities, given the affected entity does not employ contracted labor.
• For some burden categories, the Agency believes the hours assigned to them will be divided between the source and outside contractors. For these categories, the Agency established a composite cost per hour by developing a weighted average of the source and contractor wages, with the weight defined by the percentage of total effort each burden source applied. Consequently, the cost developed in this ICR should be interpreted as an upper bound on the actual cost of administration by the source or reviewing authority. The methodology for determining cost per hour can be found in greater detail in section 6.2, below.
6.1 Estimating Respondent Burden
The PM2.5 NSR Implementation rule adds PM2.5 and its precursors to the major NSR program, but does not otherwise change the requirements of the program. Thus, the rule does not change the activities that a source must carry out to obtain a permit, but may increase the number of pollutants that the source must address in its permit application. This is because major NSR applies to a new or modified source on a pollutant-by-pollutant basis. That is, a source must meet the requirements of the program for each pollutant that it will emit in amounts greater than the applicable threshold, and must address each such pollutant in its permit application. Major NSR permitting actions very often involve more than one pollutant. As a result of the PM2.5 NSR Implementation rule, we expect the number of pollutants involved to increase for some sources, with a concomitant increase in the burden to obtain a permit. In addition, we expect the burden for reviewing authority respondents to review permit applications and issue permits to increase accordingly.
To estimate the increase in permitting burden that will result from the PM2.5 NSR Implementation rule, we considered two factors: (1) which activities are likely to be affected by an increase in the number of pollutants addressed, and (2) the increase in burden for the affected activities. These factors are discussed further below.
The activities that source and reviewing authority respondents carry out for permitting under the major NSR program are listed below in Tables 6-1 and 6-2, respectively. The burden for some of these activities (such as control technology and impact analyses) will depend on the number of pollutants involved, while others are primarily administrative in nature (such as public hearings) and will be largely unaffected by the number of pollutants. In Tables 6-1 and 6-2, those activities that are affected by the number of pollutants show an incremental increase in burden in the right-most column, while the unaffected activities have an incremental burden of zero.
Not all sources that must obtain a major NSR permit will be subject for PM2.5. To estimate the percentage of permits that will have to address PM2.5, we consulted the RBLC to determine what percentage has historically been subject to major NSR for particulate matter. We found that over the last 10 years, approximately 60 percent of facilities that obtained control technology determinations obtained a determination for particulate matter. We used this percentage as a weighting factor to determine the weighted average increase in burden for the affected activities across all major NSR permits (i.e., those that address PM2.5 and those that do not), as explained further below.
To determine the likely increase in burden for affected activities under the major NSR program, we assumed that PSD permits currently address an average of three pollutants and that NA NSR permits currently address an average of two pollutants. We estimated that the PM2.5 NSR Implementation rule will have the effect of increasing these numbers by one pollutant per permit, for those sources that become subject to PM2.5 permitting. (We estimate one pollutant, specifically direct emissions of PM2.5, because the precursors of PM2.5 are already regulated under major NSR.) Thus, for sources subject to PM2.5 permitting (i.e., the 60 percent of all permits noted above), the burden associated with the affected activities will increase by 33 percent for PSD permitting and 50 percent for NA NSR permitting. We assumed the same percent increase for reviewing authorities where permits must address PM2.5. Therefore, for PSD the weighted average across all permits is 20 percent (0.60 x 0.33 = 0.20), and for NA NSR the weighted average is 30 percent (0.60 x 0.50 = 0.30). We applied these weighted average burden increases to the affected activities for both source respondents and reviewing authority respondents.
Table 6-1 shows the average incremental increase in burden hours per permit for source respondents that we estimate will result from the PM2.5 NSR Implementation rule. As the table shows, we estimate an average incremental increase of 27 hours for PSD permits, or about 3 percent. For NA NSR permits, we estimate an average incremental increase of 65 hours, or about 11 percent.
Table 6-2 gives the average incremental increase in burden hours per permit for reviewing authority respondents. We estimate an average incremental increase of 22 hours for PSD permits, or about 8 percent. For NA NSR permits, we estimate an average incremental increase of 18 hours, or about 17 percent.
In addition to issuing permits, the reviewing authorities must ensure that their NSR programs meet the requirements that EPA specifies for such programs pursuant to parts C and D. The PM2.5 NSR Implementation rule revises these requirements. Therefore, each reviewing authority must submit changes to its existing SIP program or demonstrate that its existing programs are at least equivalent to EPA’s new requirements. Because the changes needed for updating SIPs are small and the State requirements for SIP development differ from State to State, the EPA assumed it would take no more than 40 hours for each reviewing authority to fully incorporate this rulemaking into its plan. This assumption includes legislative review, public comment, and all legal and legislative processes necessary for all of the above components. This is a one-time burden that will occur during the 3-year period covered by this ICR.
Table 6-1. Source Respondent Burden Increase, Hours per Permit
Activity |
Baseline Hours per Permita |
Hours per Permit with PM2.5 Rule Revisions |
Incremental Increase in Hours per Permit |
|
I. PSD permits (Part C) |
|
|
|
|
|
A. Preparation and Planning |
|
|
|
|
Determination of Compliance Requirements |
170 |
170 |
0 |
|
Obtain guidance on Data Needs |
120 |
120 |
0 |
|
Preparation of BACT Engineering Analysis |
85 |
102 |
17 |
|
B. Data Collection and Analysis |
|
|
|
|
Air Quality Modeling |
200 |
200 |
0 |
|
Determination of Impact on Air Quality Related Values |
100 |
100 |
0 |
|
Post-construction Air Quality Monitoring |
50 |
50 |
0 |
|
C. Permit Application |
|
|
|
|
Preparation and Submittal of Permit Application |
50 |
60 |
10 |
|
Public Hearings |
24 |
24 |
0 |
|
Revisions to Permit |
40 |
40 |
0 |
|
D. Total |
839 |
866 |
27 |
II. NA NSR permits (Part D) |
|
|
|
|
|
A. Preparation and Planning |
|
|
|
|
Determination of Compliance Requirements |
150 |
150 |
0 |
|
Obtain Guidance on Data Needs |
100 |
100 |
0 |
|
B. Data Collection and Analysis |
|
|
|
|
Preparation of LAER Engineering Analysis |
40 |
52 |
12 |
|
Demonstrate Offsets |
40 |
52 |
12 |
|
Prepare Analysis of Alternative Sites, Processes, etc. |
60 |
60 |
0 |
|
Air Quality Modeling |
100 |
130 |
30 |
|
C. Permit Application |
|
|
|
|
Preparation and Submittal of Permit Application |
38 |
49 |
11 |
|
Public Hearings |
25 |
25 |
0 |
|
Revisions to Permit |
24 |
24 |
0 |
|
D. Total |
577 |
642 |
65 |
a Source: A. Rios and J. Santiago. Information Collection Request for 40 CFR Part 51 and 52 Prevention of Significant Deterioration and Nonattainment New Source Review. U.S. Environmental Protection Agency, Research Triangle Park, NC. October 2004. Page 17.
Table 6-2. Reviewing Authority Respondent Burden Increase, Hours per Permit
Activity |
Baseline Hours per Permita |
Hours per Permit with PM2.5 Rule Revisions |
Incremental Increase in Hours per Permit |
|
I. |
PART C (PSD) |
|
|
|
|
A. Attend Pre-application Meetings |
36 |
36 |
0 |
|
B. Answer Respondent Questions |
20 |
20 |
0 |
|
C. Log In and Review Data Submissions |
16 |
16 |
0 |
|
D. Request Additional Information |
8 |
8 |
0 |
|
E. Analyze for and Provide Confidentiality Protection |
24 |
24 |
0 |
|
F. Prepare Completed Applications for Processing |
32 |
38 |
6 |
|
G. File and Transmit Copies |
8 |
8 |
0 |
|
H. Prepare Preliminary Determination |
24 |
29 |
5 |
|
I. Prepare Notices for and Attend Public Hearings |
40 |
40 |
0 |
|
J. Application Approval |
40 |
48 |
8 |
|
K. Notification of Applicant of RA Determination |
8 |
8 |
0 |
|
L. Submittal of Information on BACT to RBLC |
16 |
19 |
3 |
|
M. Total |
272 |
294 |
22 |
II. |
Part D (Nonattainment) |
|
|
|
|
A. Attend Pre-application Meetings |
7 |
7 |
0 |
|
B. Answer Respondent Questions |
10 |
10 |
0 |
|
C. Log In and Review Data Submissions |
8 |
10 |
2 |
|
D. Request Additional Information |
4 |
4 |
0 |
|
E. Analyze for and Provide Confidentiality Protection |
4 |
4 |
0 |
|
F. Prepare Completed Applications for Processing |
12 |
16 |
4 |
|
G. File and Transmit Copies |
4 |
4 |
0 |
|
H. Prepare Preliminary Determination |
8 |
10 |
2 |
|
I. Prepare notices for and Attend Public Hearings |
18 |
18 |
0 |
|
J. Application Approval |
16 |
21 |
5 |
|
K. Notification of Applicant Determination |
2 |
2 |
0 |
|
L. Submittal of Information on LAER to RBLC |
16 |
21 |
5 |
|
M. Total |
109 |
127 |
18 |
a Source: A. Rios and J. Santiago. Information Collection Request for 40 CFR Part 51 and 52 Prevention of Significant Deterioration and Nonattainment New Source Review. U.S. Environmental Protection Agency, Research Triangle Park, NC. October 2004. Page 18.
6.2 Estimating Respondent Costs
6.2.1 Estimating labor costs
Similarly, the labor rate used in this analysis for reviewing authority respondents is $43.53 per hour. This rate was derived for the 2005 ICR renewal by inserting 2004 Federal government pay schedule wage rates for clerical, technical, and managerial staff into the weighting system developed in the 1997 renewal ICR and described in the November 2002 ICR revision.5
6.2.2 Estimating
capital/start-up and O&M costs, including purchase of services
Even if an applicant is a brand new company and the prospective source is a “greenfield” source (the EPA estimates less than 1 percent of source respondents fit that description) most, and perhaps all, of the equipment needed to prepare permit applications (for example, the computers and basic software) will be part of the source’s business operation inventory. Furthermore, much of the data and regulatory and policy information for making technology determinations and even models for performing ambient air impact analyses are available in electronic form from several different EPA bulletin boards for just the communication charges, which are typically absorbed in routine business overhead expenses. Thus, the capital costs for the major NSR program are negligible. In any case, the PM2.5 NSR Implementation rule, which is the subject of this ICR revision, will not cause any new capital costs to be incurred by any respondents.
The EPA has conservatively estimated that 13 percent of PSD permit applicants have to conduct pre-construction ambient monitoring for the impacts analyses and that monitoring is conducted for approximately 4 months. As a practical matter, sources would probably contract this type of activity since it would generally be a one-time exercise. Consequently, EPA believes this cost is most often a direct cost associated with preparing permit applications. Based on this assumption, cost of capital equipment for pre-construction monitoring is negligible. To account for this cost in the 2005 ICR renewal, EPA added a line item direct cost to the total annual cost based on a contracted service cost of $253,337 per permit where pre-construction monitoring is required. This cost, although not a fixed-capital cost, is nonetheless considered a start-up cost and is reported as such in the OMB form for the 2005 ICR renewal. For purposes of this ICR revision, we estimate that the average cost per PSD permit for those sources who must conduct pre-construction monitoring will increase by 20 percent, or $50,667, to $304,004. This estimate of a 20 percent incremental increase was derived as discussed above in section 6.1 for other permitting activities that will be affected by the increase in the number of pollutants addressed in PSD permits.
Since the purchase of capital equipment is believed to be an insignificant factor in permit application preparation, we assume that the O&M and services for same are negligible. Further, once a permit is issued, there is no O&M cost associated with it. It remains unaltered unless the source or the reviewing authority discovers specific reasons to reexamine it and change any conditions or specifications. If purely administrative, the changes are handled exclusively by the reviewing authority. If changes have the potential for environmental consequences, the action may be significant enough to be counted as a separate and new application, to which a new burden and cost may be ascribed.
6.2.3 Annualized
capital costs
6.3 Estimating Agency Burden and
Cost
To facilitate cost comparisons between this ICR revision and the 2005 ICR renewal, we have used the Federal labor rate from the 2005 ICR of $36.21 per hour.6 The rate reflects the assumption, made in the July 10, 1997 renewal ICR and the February 2001 renewal ICR, that the staff reviewing permits are classified as Grade 11 Step 3. The corresponding salary is loaded with benefits at the rate of 60%.
In addition, there will be Agency burden to review the revised SIPs submitted by the reviewing authorities to verify that the revisions fully meet the requirements of the program, as changed by the PM2.5 NSR Implementation rule. Due to the nature of the SIP revisions needed, the Agency expects that each SIP revisions will require about 5 hours of review. We expect this one-time burden to occur during the period covered by this ICR.
Table 6-3. Federal Burden Increase, Hours per Permit
Activity |
Baseline Hours per Permita |
Hours per Permit with PM2.5 Rule Revisions |
Incremental Increase in Hours per Permit |
|
I. |
PART C (PSD) |
|
|
|
|
A. Review and Verify Applicability Determination |
2 |
2 |
0 |
|
B. Review Control Technology Determination |
3 |
4 |
1 |
|
C. Evaluate Air Quality Monitoring |
4 |
4 |
0 |
|
D. Evaluate Alternative and Secondary Impact Analysis |
2 |
2 |
0 |
|
E. Evaluate Class I Area Analysis |
2 |
2 |
0 |
|
F. Administrative Tasks |
1 |
1 |
0 |
|
G. Total |
14 |
15 |
1 |
II. |
Part D (nonattainment) |
|
|
|
|
A. Review and Verify Applicability Determination |
2 |
2 |
0 |
|
B. Review Control Technology Determination |
3 |
4 |
1 |
|
C. Evaluate Offsets |
1 |
1 |
0 |
|
D. Evaluate Air Quality Monitoring |
4 |
5 |
1 |
|
E. Evaluate Alternative and Secondary Impact Analysis |
2 |
3 |
1 |
|
F. Administrative Tasks |
1 |
1 |
0 |
|
G. Total |
13 |
16 |
3 |
a Source: A. Rios and J. Santiago. Information Collection Request for 40 CFR Part 51 and 52 Prevention of Significant Deterioration and Nonattainment New Source Review. U.S. Environmental Protection Agency, Research Triangle Park, NC. October 2004. Page 19.
6.4 Estimating the Respondent
Universe and Total Burden and Cost
For the purpose of estimating the total burden in this ICR, the respondent universe is defined by the annual number of permit applications prepared by sources and the number of reviewing authorities that must process such permit applications. It also includes the number of reviewing authorities that will have to revise their SIPs.
6.4.1 Estimating the number of
respondents
For the number of respondent reviewing authorities associated with major NSR permitting and SIP revisions, we used the 112 reviewing authority count used by other permitting ICRs. Again, we carried out this “worst-case” analysis as if all reviewing authorities would begin issuing major NSR permits for PM2.5 immediately, with no lag time for SIP revisions. We also included the reviewing authorities’ burden for revising the SIPs in this ICR.
6.4.2 Estimating total respondent
burden and cost
Table 6-4. Incremental Annual Burden and Costs for Source Respondents
Activity |
Number of Permits per Year |
Incremental Burden per Permit |
Incremental Annual Burden |
Labor Rate |
Incremental Annual Cost ($ 2004) |
|
PSD Permitting |
|
|
|
|
|
|
|
Permitting labor |
265 |
27 hours |
7,155 hours |
$65.50/hr |
$468,653 |
|
Pre-construction monitoringa |
34 |
$50,667 |
|
|
$1,722,678 |
|
PSD Permitting Subtotal |
265 |
|
7,155 hours |
|
$2,191,331 |
NA NSR Permitting |
|
|
|
|
|
|
|
Permitting labor |
488 |
65 hours |
31,720 hours |
$65.50/hr |
$2,077,660 |
|
NA NSR Permitting Subtotal |
|
|
31,720 hours |
|
$2,077,660 |
TOTAL |
753 |
|
38,875 hours |
|
$4,268,991 |
a The 34 permits per year for which pre-construction monitoring must be carried out are a subset of the 265 PSD permits per year.
Table 6-5. Incremental Annual Burden and Costs for Reviewing Authority (RA) Respondents
Major NSR Permitting |
|||||
Activity |
Number of Permits per Year |
Incremental Burden per Permit (Hours) |
Incremental Annual Burden (Hours) |
Labor Rate |
Incremental Annual Cost ($ 2004) |
PSD Permitting |
265 |
22 |
5,830 |
$43.53/hr |
$253,780 |
NA NSR Permitting |
488 |
18 |
8,784 |
$43.53/hr |
$382,367 |
Major NSR Subtotal |
753 |
|
14,614 |
|
$636,147 |
SIP Revisions |
|||||
Activity |
Number of SIP Revisions per Yeara |
Burden per Revision (Hours) |
Average Annual Burdenb (Hours) |
Labor Rate |
Average Annual Costc ($ 2004) |
Revision of SIP |
37.33 |
40 |
1,493 |
$43.53/hr |
$65,005 |
Reviewing Authority Totals |
|||||
TOTAL |
|
|
16,107 |
|
$701,152 |
a Each of the 112 reviewing authorities must submit one SIP revision to conform their major NSR programs to the revised rules over the 3-year period covered by this ICR. Thus, the average annual number of such revisions is 112 / 3 = 37.33 per year.
b Each reviewing authority will revise its SIP once for a 3-year total burden of 4,480 hours. Average annual burden is 4,480 / 3 = 1,493 hours.
c Total 3-year cost is 4,480 hours x $43.53 = $195,014. Average annual cost is $195,014 / 3 = $65,005.
6.4.3 Estimating total Federal
burden and cost
Table 6-6. Incremental Federal Annual Burden and Costs
Major NSR Permitting |
|||||
Activity |
Number of Permits per Year |
Incremental Burden per Permit (Hours) |
Incremental Annual Burden (Hours) |
Labor Rate |
Incremental Annual Cost ($ 2004) |
PSD Permitting |
265 |
1 |
265 |
$36.21/hr |
$9,596 |
NA NSR Permitting |
488 |
3 |
1,464 |
$36.21/hr |
$53,010 |
Major NSR Subtotal |
|
|
1,729 |
|
$62,606 |
SIP Revisions |
|||||
Activity |
Number of SIPs to Review per Yeara |
Burden per SIP Review (Hours) |
Average Annual Burdenb (Hours) |
Labor Rate |
Average Annual Costc ($ 2004) |
Revision of SIP |
37.33 |
5 |
187 |
$36.21/hr |
$6,759 |
Federal Totals |
|||||
TOTAL |
|
|
1,916 |
|
$69,365 |
a The EPA will review one SIP revision submitted by each of the 112 reviewing authorities over the 3-year period covered by this ICR. Thus, the average annual number of SIP reviews is 112 / 3 = 37.33 per year.
b The EPA will review a total of 112 SIP revisions for a 3-year total burden of 560 hours. Average annual burden is 560 / 3 = 187 hours.
b Total 3-year cost is 560 hours x $36.21 = $20,278. Average annual cost is $20,278 / 3 = $6,759.
6.5 Bottom Line Burden and Cost
Table 6-7. Total Estimated Incremental Change in Annual Respondent Burden and Costs
Type of Respondent |
Number of Responses |
Total Incremental Burden (Hours/Year) |
Total Incremental Labor Costs ($/Year) |
Total Incremental Capital Costs ($/Year) |
Total Incremental Costs ($/Year) |
Sources |
753 |
38,875 |
$2,546,313 |
$1,722,678 |
$4,268,991 |
Reviewing Authoritiesa |
790.33 |
16,107 |
701,152 |
0 |
701,152 |
TOTAL |
1,543.33 |
54,982 |
$3,247,465 |
$1,722,678 |
$4,970,143 |
a During the 3-year period of this ICR, the 112 reviewing authorities will review 753 major NSR permits each year and submit an average of 37.33 SIP revisions per year (112 / 3 = 37.33), for a total of 790.33 responses per year.
Table 6-8. Total Estimated Incremental Change in Annual Federal Burden and Costs
Type of Entity |
Number of Entities |
Total Incremental Burden (Hours/Year) |
Total Incremental Labor Costs ($/Year) |
Total Incremental Capital Costs ($/Year) |
Total Incremental Costs ($/Year) |
Federal Agency |
1 |
1,916 |
$69,365 |
$0 |
$69,365 |
6.6 Reasons for Change in Burden
6.7 Burden Statement
Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or provide information to or for a Federal agency. This includes the time needed to review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. The OMB control numbers for EPA's regulations are listed in 40 CFR Part 9 and 48 CFR Chapter 15.
To comment on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including the use of automated collection techniques, EPA has established a public docket for this ICR under Docket ID Number EPA-HQ-OAR-2007-0281, 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), EPA West, Room 3334, 1301 Constitution Avenue, NW, Washington, D.C. The EPA Docket Center Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Reading Room is (202) 566-1744, and the telephone number for the Air Docket is (202) 566-1742. An electronic version of the public docket is available at www.regulations.gov. This site can be used to submit or view public comments, access the index listing of the contents of the public docket, and to access those documents in the public docket that are available electronically. When in the system, select “search,” then key in the Docket ID Number identified above. Also, you can send comments to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, D.C. 20503, Attention: Desk Officer for EPA. Please include the EPA Docket ID Number EPA-HQ-OAR-2007-0281 and OMB Control Number 2060-0003 in any correspondence.
1The term “reviewing authority” is synonymous with the term “permitting authority” used in previous permit-related analyses. The reader should consider these terms interchangeable for comparison purposes.
2 A. Rios and J. Santiago. Information Collection Request for 40 CFR Part 51 and 52 Prevention of Significant Deterioration and Nonattainment New Source Review. U.S. Environmental Protection Agency, Research Triangle Park, NC. October 2004. Appendix A.
3“Economic Assessment of the Impacts of Part C and D Regulatory Changes,” June 2, 1994.
4The definition for “small business” employed for all SIC categories in this analysis was any business employing fewer than 500 employees.
5 U.S., Environmental Protection Agency, Office of Air Quality Planning and Standards, Draft Information Collection Request For Changes To The 40 CFR Part 51 And 52 Prevention Of Significant Deterioration And New Source Review Applicability Requirements For Modifications To Existing Sources, November 2002, p. 29.
6A. Rios and J. Santiago. Information Collection Request for 40 CFR Part 51 and 52 Prevention of Significant Deterioration and Nonattainment New Source Review. U.S. Environmental Protection Agency, Research Triangle Park, NC. October 2004. Page 13.
File Type | application/msword |
File Title | United States Environmental Protection Agency |
Author | Robin Barrows |
Last Modified By | xxx |
File Modified | 2008-07-10 |
File Created | 2008-07-10 |