**SUPPORTING STATEMENT FOR THE**  **PART 71 FEDERAL OPERATING PERMIT PROGRAM**  **(RENEWAL) EPA Tracking # 1713.11**  **OMB Control # 2060**
**- 0336** 

Joanna Gmy

r Operating Permits Group Air Quality

Policy Division Office of Air Quality

Planning and Standards Office of Air and Radiation United States Environmental Protection Agency R esearch T riangle P ark , North Carolina 27711

Draft January 26 , 2015DRAFT

ii **SUPPORTING STATEMENT** 

**FOR THE PART 71 FEDERAL OPERATING**  **PERMIT PROGRAM**
**TABLE OF CONTENTS Page**  1. ID ENTIFICATION OF THE INFORMATION COLLECTION

................................ ....................... 1 1(a) Title of the Information Collection Request (I CR)

................................ ................................ .... 1 1(b) Short Characterization/Abstract

................................ ................................ ................................ . 1 1(b)(i) Federal program where there is no state, local or tribal program

................................ . 1 1(b)(ii) Federal program as a backstop for deficient state programs

................................ ......... 2 1(b)(iii) Federal program for deficient state programs

................................ ............................... 2 2. NEED FOR AND USE OF THE COLLECTION

................................ ................................ .............. 2 2(a) Need/Authorit y for the Collection

................................ ................................ .............................. 2 2(b) Practical Utility

/Users of the Data

................................ ................................ .............................. 3 2(c) Caveats and Considerations

................................ ................................ ................................ ........ 3 3. NON

- DUPLICATION, CONSUL TAT IONS AND OTHER COLLECTION CRI TERIA

............... 3 3(a) Non

- Duplication

................................ ................................ ................................ ......................... 3 3(b) Public Notice Required Prior to I CR Submission to OMB

................................ ........................ 4 3(c) Consultations

................................ ................................ ................................ .............................. 4 3(d) Effects of Less Frequent Collection

................................ ................................ ........................... 4 3(e) General Guidelines

................................ ................................ ................................ ..................... 4 3(f) C onfidentiality

................................ ................................ ................................ ............................ 5 3(g) Sensitive Questions

................................ ................................ ................................ .................... 5 4. THE RESPONDENTS AND THE INFORMATION REQUESTED

................................ ................ 5 4(a) Respondents/ Standard Industrial Classification (SI C) Codes

................................ ................... 5 4(b) In formation Requested

................................ ................................ ................................ ............... 7 4(b)(i) Data items, including recordkeeping requirements

................................ ........................ 7 4(b)(ii) Respondent activities

................................ ................................ ................................ ..... 7DRAFT

iii 5. THE INFORMATION COLLECTED

– AGENCY ACTIVITIES, COLLECTI ON METHODOLOGY AND INFORMATION MANAGEMENT

................................ ......................... 9 5(a) Agency

Activities

................................ ................................ ................................ ....................... 9 5(b) Collection Methodology and Management

................................ ................................ ................ 9 5(c) Small Entity

Flexibility

................................ ................................ ................................ ............ 10 5(d) Collection Schedule

................................ ................................ ................................ .................. 10 6. E STIMATING THE BURDEN AND COST OF THE COLLECTION

................................ .......... 11 6(a) Estimating Respondent Burden

................................ ................................ ................................ 11 6(b) Estimating Respondent Costs

................................ ................................ ................................ ... 12 6(b)(i) Estimating Labor Costs

................................ ................................ ............................... 12 6(b)(ii) Estimating Capital and Operating and Maintenance (O&M) Costs

........................... 13 6(b)(iii) Capital/Start

- up vs. O&M Costs

................................ ................................ ................. 14 6(b)(iv) Annualizing Capital Costs

................................ ................................ .......................... 14 6(c) Estimating Agency

Burden and Cost

................................ ................................ ....................... 15 6(d) Estimating the Respondent Universe and Total Burden and Costs

................................ .......... 16 6(e) Bottom L ine Burden Hours and Cost Tables

................................ ................................ ........... 19 6(e)(i) Respondent Tall y
................................ ................................ ................................ .......... 19 6(e)(ii) The Agency

Tally

................................ ................................ ................................ ......... 20 6(e)(iii) Variations in the Annual Bottom L ine

................................ ................................ ........ 21 6(f) Reasons for Change in Burden

................................ ................................ ................................ ... 21 6(g) Burden Statement

................................ ................................ ................................ ....................... 22 Attachment 1: THE STATUTORY REQUIREMEN TS FOR RESPONDENT INFORMATION

......... 2 3 Attachment 2: ADJUSTMENTS TO BASELINE BURDEN TO ACCOUNT FOR GHG TAILORING

RUL E BURDEN

................................ ................................ ................................ ............... 34DRAFT

iv **LIST OF TABLES Page**  Table 1. SI C and NAI CS Codes for Part 71 Sources in Indian Country (as of October 30, 2006)

........... 6 Table 2. Average Source Burden by Activity

................................ ................................ ......................... 1 2 Table 3. Average Permitting Authority Burden b y Activity

................................ ................................ ... 1 2 Table 4. Average EPA Burden b y Activity for Oversight of Delegate Agencies

................................ ... 1 5 Table 5. Id entification of Affected Entities and Permit I ssuance Schedule

................................ ............ 1 7 Table 6. Baseline Burden and Cost of Source Activities

................................ ................................ ........ 1 8 Table 7. Baseline Burden and Cost of Permitting Authority Activities

................................ .................. 1 9 Table 8. Bottom L ine Average Annual Respondent Burden ( Hours )

................................ ..................... 20 Table 9

. Bottom L ine Aver age Annual Respondent Cost (2014 $)

................................ ........................ 20 Table 1 0 . Bottom Line Average Annual EPA Burden and Cost

................................ ............................... 2 0 Table 1 1

. Burden Change from 20 12 IC R to Current ICR (Hours)

................................ .......................... 2 1 Table 1 2

. Burden Statement (Hours)

................................ ................................ ................................ ......... 2 2DRAFT

1 1. ID ENTIFICATION OF THE INFORMATION COLLECTION 1(a) Title of the Information Collection Request (I CR) This analy sis is titled: “Supporting Statement for the Part 71 Federal Operating Permit Program

. ” It fulfills the U.S. Environmental Protection Agency’s (EPA’s) requirements under the Paperwork Reduction Act (PRA) to determine, report and periodically update th e regulatory

burden associated with the Federal Operating Permit Program, codified in title 40 of the Code of Federal Regulations (40 CFR) part 71. It has been assigned EPA tracking number 1713.1 1 and Office of Management and Budget ( OMB ) control number 20 60

- 0336. 1(b) Short Characterization/Abstract The part 71 program is a f ederal operating permit program implemented b y the EPA (or a delegate agency) for sources located in areas where there is no s tate, local or tribal program, such as in Indian country ; offshore areas where the Outer Continental Shelf ( OCS ) and Deep Water Ports Act ( DWPA ) regulations appl y ; where there is a deficient s tate or local (part 70) permit program ; and where the EPA has objected to a particular part 70 permit and taken over permitting because the state failed to adequatel y resolve the objection. Title V of the Clean Air Act (CAA or “the Act”) imposes on state or local permitting authorities (agencies), the duty to de velop, administer and enforce operating permit programs which comply

with title V and requires the EPA to administer and enforce a permit program when state , local or tribal agencies do not establish such a program, or where they establish such a program b ut they

fail to perform their duties consistent with title V. Section 502(b) of the Act requires the EPA to promulgate regulations setting forth provisions under which state , local or tribal agencies will develop operating permit programs and submit them t o the EPA for approval. Pursuant to this section, the EPA promulgated 40 CFR part 70 on July 21, 1992 (57 FR 32250) which specifies the minimum elements of state operating permit programs. 1(b) (i ) Federal program where there is no state, local or tribal p rogram Pursuant to regulations promulgated b y the EPA on February 19, 1999 (64 FR 8247) , the EPA has authority to establish part 71 programs within Indian country , and the EPA began administering the program in Indian country on March 22, 1999. There are approximately 84 sources in Indian country with permits at the beginning of the IC R period and we expect to permit an additional 6 such sources b y the end of the analy sis period (through June 201 8 ). This is a de crease in the number of sources expected t o be permitted overall compared to the last ICR renewal, due to changes in estimates of the number of permits expected to be issued in Indian C ountry and in the OCS , rather than due to any changes in paperwork burdens (explained further below)

. The EPA i s the permitting authorit y for sources located beyond 25 miles (40 km) of the state s’ seaward boundaries under the Outer Continental Shelf Lands Act (OCS sources), and the provisions of part 71 apply to the permitting of those sources, as well. The EPA estimates there are currentl y zero OCS sources with part 71 permits and as many as three additional OCS sources that may seek part 71 permits during the period of this ICR renewal. Through the y ears, we have onl y seen a small number of such sources receiv e part 71 permits; thus, we believe our estimate of three additional OCS sources during the period of the ICR is likely an overestimate of the activity we will experience

.DRAFT

2 Deepwater Port sources (DWPA sources) are fixed or floating structures that are loc ated beyond state seaward boundaries, intended for the transportation, storage and handling of oil or natural gas (offshore LNG terminals) and alternative energy projects. An offshore source may be either an OCS or a DWPA source

– it may

not be both. Becau se DWPA sources are required to be treated as if they are located in an “area of exclusive federal jurisdiction within a State,” the EPA must issue the title V permit for them [see section 1518(a)(1) of the DWPA]. Currently there are no DWPA sources permitted under part 71. We are aware of several sources that are seeking DWPA permits; thus, we estimate that three such sources will receive such permits during the period of the ICR and we believe that this will be an overestimate of the permitting of such so urces. 1(b) (ii ) Federal program as a backstop for deficient state programs Section 502(i)(4) of the Act requires the EPA to promulgate, administer and enforce a title V program if the EPA makes a determination that a state or local permitting authority is not adequatel y administering or enforcing its EPA

- approved title V permitting program. This requirement is implemented through regulations promulgated by the EPA on July 1, 1996 (61 FR 34202), specifically 40 CFR 71.4(c) and 71.10(b)(1). The process d escribed in these regulations can take up to 2 ye ars after a formal finding by the EPA is published in the Federal Register that the state part 70 program is deficient in its implementation or enforcement (this notice is called a “notice of deficiency” or “NOD”). For the 3

- ye ar period covered b y this ICR, it is unlikely that an y state or local permitting program under part 70 will be replaced by a part 71 program administered by the EPA , and thus this I CR renewal does not include such scenarios. There are currently no NODs in place at this time and we do not expect to take over an y state or local programs during the time period of this I CR

. 1(b) (iii ) Federal program for deficient state programs Section 505(c) of the Act provides that if a permitting authority fails to submit a permit to the EPA that satisfies an EPA objection, then the EPA shall issue a permit that meets the requirements of the Act. The part 71 rules implement this provision by p roviding that if the state or local permitting authorit y fails to satisfy an EPA objection to a part 70 permit , then the EPA shall issue a part 71 permit instead. There is currentl y one part 70 source that has been issued a part 71 permit for this reason

. W e estim ate that one additional part 70 source will be issued a part 71 permit for this reason during the period of this I CR

. 2. NEED FOR AND USE OF THE COLLECTION 2(a) Need/Authorit y for the Collection When the EPA is the permitting authority under tit le V, a source subject to the program must prepare an application and submit it within 1 y ear of becoming subject ( CAA section 503). The EPA must then issue the permit within 18 months of receiving a complete application ( CAA section 503(c)) and thereafter administer (including revising, reopening and enforcing the permit terms, as needed) and renew such permits at no more than 5

- ye ar intervals ( CAA section 502(b)(5)). Sources must periodically (no less often than annually) certify that they are in complian ce with applicable requirements and promptly report deviations from permit requirements to the permitting authority ( CAA section 503(b)(2)), and permits are required to set forth requirements for sources to conduct monitoring and reporting to assure compliance with permit terms and conditions ( CAA section 504(b)). The permit and all information submitted by a source shall be available for public review except for confidential information which will be protected from disclosure ( CAA section 503(e)), an d the public shall be givenDRAFT

3 public notice of, and an opportunity for comment on, permit actions ( CAA section 502(b)(6)). A copy of sections 502 through 504 of title V of the Act are in Attachment 1. 2(b) Practical Utility

/Users of the Data For the EPA to carry

out its requirement under the Act to issue part 71 permits in areas where there is no approved part 70 program or where a state will not resolve an EPA objection to a part 70 permit, the EPA must receive and review permit applications, issue initial and renewal permits, issue permit revisions and receive and review compliance and monitoring reports submitted by sources. For the EPA to carry out its required oversight functions, where the EPA has delegated its authority to issue part 71 permits to a s tate or tribe (delegate agency), the EPA must review proposed permits of all ty pes developed b y the delegate agency , review certain information submitted by the source to the delegate agency , and require the submittal of certain information concerning prog ram implementation from the delegate agency

. 2(c) Caveats and Considerations The information included in this I CR is based upon the best data available to the Agency at this time. However, inconsistencies in permitting authority reporting techniques, inc omplete data sets, and sampling limitations imposed upon the Agency by the P RA necessitated a certain amount of extrapolation and “best

- guess” estimations by permitting authority

and Agency

experts. Consequently , the reader should not consider the conclusi ons to be an exact representation of the level of burden or cost that will occur during the 3 ye ars of this ICR. Instead, this I CR should be considered a directionall y correct assessment of the impact the Federal Operating Permit Program will have over the next 3 ye ars. 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 dat a would be to determine an appropriate level of precision and truncate values accordingly , usuall y 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 I CR, where source values are consistently

in the millions and f

ederal values in the tens of thousands. Consequently , to avoid the loss of information through rounding, this I CR reports all values at the single unit level and reminds the reader that there is no implied precision inherent in this style of reporting.
3. NON

- D UPLICATION, CONSUL TAT IONS AND OTHER COLLECTION CRI TERIA 3(a) Non

- Duplication The need for the data required by the part 71 operating permits program has been well documented in prior I CRs for both programs. While much of the information requested under this I CR existed prior to the creation of the operating permit program, an operating permit is a compilation of existing requirements; the purpose being to bring all requirements applicable to a source into one document. The intent of this compilation is to (1) resolve an y questions of applicability at the time of permit issuance, (2) provide certaint y to sources as to their obligations and (3) provide the public access to a source’s obligations and compliance s tatus. The Agency has no leeway to not require such previousl y existing information under this I CR since consolidation of the information into the operating permit and providing public access is the whole purpose of the statute. To the extent that similar information wasDRAFT

4 previously

collected (e.g., state permits under state implementation plans), the part 71 program may replace those activities and avoid duplication of efforts 3(b) Public Notice Required Prior to IC R Submission to OMB
For an y existing rule, section 3507(g) of the PRA limits the length of time for which the Director may approve a collect ion of information to 3 years. On June 30, 2012 , OMB approved the ICR renewal for part 71 ( EPA tracking number 1713. 10 ) for 36 months , through June 30 , 201 5 . Thus, th is I CR is a renewal of the June 2012 IC R. Except for information collection in notices of proposed rules or those exempted under the emergency processing provisions of 44 U.S.C. § 3507(j), the PRA requires the EPA to solici t comment on each proposed information collection, including the renewal or modification of any existing ICR. 3(c) Consultations The current ICR was prepared using data on the numbers of sources and permits that are updated on a semi

- annual b y basis b y e ach of the EPA ’s 10 Regional Offices. Itis these EPA Regional Offices where the part 71 permitting activities are carried out b y the EPA . The actual rates of permit issuance and permit renewal are reported by the Regional Offices into an EPA database every 6 months. Seven years of data in this database was reviewed for purposes of estimating existing sources and permits and the backlog of initial and renewal permits. Also, the prior supporting statement for this I CR included useful information concerning many other consultations we have conducted over the y ears on the burden and costs of the part 71 program for sources and permitting agencies. 3(d) Effects of Less Frequent Col lection In general, collection of the information included in this I CR occurs once per activit y (e.g., permit application or permit issuance). Periodic activities include a semi

- annual compliance monitoring data report and an annual compliance certificati on from each source required b y CAA section s 503(b)(1) and (2), respectivel y. The EPA has no leeway to require less frequent reporting. 3(e) General Guidelines The OMB’s general guidelines for information collections must be adhered to by all federal age ncies for approval of an y rulemaking's collection methodology. The recordkeeping and reporting requirements contained in the part 71 operating permits regulations do not exceed an y of the OMB guide lines con

tained in 5 CFR 1320.5, except for the guideline which limits retention of records b y respondents to 3 ye ars. Part 71 requires retention of all monitoring data and support information and all permit applications, proposed permits and final permit records for a period of 5 ye ars. These records are neces sary to fulfill the intent of title V to assure compliance with applicable requirements. Questions regarding the obligations of a source and its status of compliance can be resolved through such records. In addition, 28 U.S.C. 2462 specifies 5 ye ars as the general statute of limitations for federal claims in response to violations by

regu lated entities. The decision in U.S. v. Conoco, Inc., No. 83

- 1916

- E (W.D. Okla., January

23, 1984) found that the 5

- ye ar general statute of limitations applies to the Act.DRAFT

5 3(f) Confidentiality All information related to the permitting of sources under this program and related to compliance monitoring is required b y section 503(e) of the Act to be subject to public review at all times. In formation entitled to protection un der 114(c) of the Act may be required to be submitted directly to the EPA . Such information will be stored in the EPA ’s Confidential Business Information office

. 3(g) Sensitive Questions The consideration of sensitive questions (i.e., sexual, religious, personal or other private matters) is not applicable to the part Federal Operating Permit Program. The information gathered for purposes of establishing a part 71 permit for a source do not include personal data on any owner or op erator. 4. THE RESPONDENTS AND THE INFORMATION REQUESTED 4(a) Respondents / Standard Industrial Classification ( S IC ) C odes Respondents to this information collection come from two groups: permitting authorities that have been delegated authority

to implement the part 71 program by the EPA (i.e., delegate permitting authorities) and sources required to obtain part 71 operating permits. There is currentl y one delegate permitting authority under part 71 , which is the Navajo Nation Environmental Protect ion Agency (NNEPA) . We do not anticipate any additional agencies becoming delegate permitting authorities during the period covered b y this ICR renewal. Under title V, all major stationary sources must obtain an operating permit. 1 Some non

- major sources m ay also be subject to the program if they are subject to a federal standard such as a New Source Performance Standard (NSPS) pursuant to section 111 of the Act or a National Emissions Standard for Hazardous Air Pollutants (NESHAP) pursuant to section 112 o f the Act. Some of these sources have been exempted from the program.
Source r espondents to this information collection are those sources subject to title V permitting that are located where the EPA or a delegate agency is the permitting authorit y ( e.g. , in Indian country , offshore [ OCS and D WPA sources ] , and where there are unresolved EPA objections to part 70 permits ) . For the purposes of this I CR, the Agency identified the following existing source population subject to part 71: 84 in Indian country , zero OCS sources, zero DWPA sources, and 1 source due to unresolved objection of a part 70 permit. By

the end of the period covered by this ICR, there may

also be up to an additional 6 permits issued in Indian Country , up to 3 additional OCS sources and up to 3 additional DWPA sources subject to permitting under part 71. The EPA anticipates one additional source subject to part 71 because of an EPA objection to part 70 permits (assuming the state will not adequately resolve the objection). Thus, this analy s is includes a total of 85 sources currentl y with part 71 permits and an increase of 13 new sources over the IC R period , for a permitted total of 98 sources b y the end of the ICR period ( we assume it will end on June 30, 2018 ). Also , note that one reason th e number of permit s subject to part 71 has reduced since the previous (2012) IC R update due to the approval of the Southern Ute Indian Tribe (SUIT) as a part 70 permitting authority . By the end of period covered b y this I CR renewal, we estimate the SUI T wi ll be the permitting agency for up to 36 permits under part 70 that were previously part 71

1 All definitions of “major” in the Act.DRAFT

6 permits. This transition of permits from part 71 to part 70 has occurred since the previous ICR renewal and will continue for some period into the future. For this update, the EPA is not assuming that we will take over an y entire state permitting programs due to findings of program deficiencies. All NODs for state programs have been resolved to the EPA ’s satisfaction and no part 71 permits were issued in response to such programs deficiencies in the interim. Also, at this time the EPA has no active NODs and we believe it unlikel y that we will be issuing any permits for this reason during the period covered by this ICR renewal. The SI C codes and North American Industrial Classification Sy stem (NAICS) codes for the part 71 sources located in Indian country are listed below in Table 1 . This list was compiled for the 2007 ICR renewal, but we believe that it remains representative of the ty pes of sources with part 71 perm its.
**Table 1. SIC and NAICS Codes for Part 71 Sources in Indian Country** 

**(as of October 30, 2006**  **) SIC Code**  **NAICS Code** 1021 212234 1221 212111 1311 211111 1321 211112 1389 213112 2421 321 2431 32191 2436 321212 2493 321219 2819 325 2842 325612 2875 325314 2879 32532 2899 325 3341 331 3354 331316 4911 2211 4922 48621 4925 22121 4953 562 4961 22133 5171 42271 7011 7211 9711 92811DRAFT

7 4(b) In formation Requested All activities associated with EPA issuance of operating permits are information collection activities and are reflected in this I CR. The following are lists of the data items submitted by sources and permitting authorities for ICR purposes under part 7 1 . These activities represent the Agen cy ’s best representation of the burdens experienced by sources and permitting authorities for part 71 requirements.
4 (b )(i ) Data items, including recordkeeping requirements **Under Operating Permits rules, the following data items must be submitted by dele**  **gate permitting**  **authorities to the EPA:**

 Applications for permits, permit revisions, and permit renewals
 Draft / proposed permits, permit revisions, or permit renewals
 Final permits
 Annual reports of enforcement activities For this anal ys is, the submittals above are onl y necessary for the small fraction of permit handled b y the NNEPA, the delegate agency (1 5 permits). The majority of permits will be issued, implemented, and enforced b y the EPA as permitting authorit y ( 8 3 permits). **Under Operating Permit rules, the following data items must be submitted by sources to permitting authorities:** 

 Applications for permits, permit revisions, and permit renewals

 Semi

- annual periodic monitoring reports
 Annual compliance certificati on reports When the EPA is the permitting authority , sources submit these data directly to the EPA

. When there is a delegate agency , these data will be submitted directly to the delegate agency . Attachment 1 includes the statutory

requirements for referen ce purposes. 4(b)(ii) Respondent activities The following describes the information collection activities required of delegate permitting authorities and sources. In all cases, the activities for the delegate permitting authority match those for state and local permitting authorities under the part 70 operating permits program and the activities listed for source - level activities match those for sources under the part 70 programs

.DRAFT

8 **DELEGATE PERMITTING AUTHORITY ACTIVITIES**

 **Program administration:** Responding to inquiries about the program, developing internal and external program guidance, developing rules, forms, and other mechanisms to implement the program, planning, attending program training, permit fee collection, providing source training, attending meetings and conferences, providing public education, and other program related activities.

 **Permit application review,** including discussions with a source concerning the completeness of the permit application, review of applications for completen ess and technical approach, and requests for additional information, when necessary

.  **Draft permit preparation,** including contact with the source to clarify the specific requirements that apply , drafting the “statement of basis,” drafting gap

- filing monit oring, when necessary , and drafting permit terms and conditions to reflect existing requirements. 2

 **Comment period notification:** Providing notice to the public, and affected states of the comment period on a draft permit (for initial permit issuance, perm it renewal and significant permit modification). Affected state notification is also required for minor permit modification.

 **Public hearing administration:** Administering a public hearing, when appropriate, for initial permit issuance, permit renewal and si gnificant permit modification.

 **Interaction with the EPA** on a proposed permit, including negotiations, re

- drafting and formal EPA objections (including those attributable to public petitions).

 **Response to public comments:** Anal yz ing public comments and rev ising the draft permit accordingl y, when appropriate.

 **Permit issuance:** Formalizing permits, placing copies of final permits on public websites, entering information into the EPA’s permit website (Air Facility S ys tem) and providing copies to sources.
 **General permits administration**  (Burden for issuing general permits included with other permit issuance burden).

 **Permit revision** : Modifying permits to reflect changes at the source otherwise prohibited by the permit, including public participation and affe cted state review, when needed.

 **Permit renewal:** Updating the permit to reflect changes at the source not captured through permit revision (includes reviewing application, drafting changes, public notice, public hearings (when needed), responding to publi c comments (when needed) and permit issuance).

 **Monitoring and compliance certification:** Reviewing deviation and semiannual monitoring reports and annual compliance certification reports required b y part 70, and any enforcement activities related to such r eviews.

 **Annual reporting:** Preparing and submitting to the EPA annuall y a report of the state's enforcement activities.

2 This involves writing permit terms that reflect the “applicable requirements” that apply to sources.DRAFT

9 **SOURCE**
**- SPECIFIC ACTIVITIES** 

 **Permit application preparation** , including internal meetings, permitting authority discussions, management and legal department involvement, responsible official certification, contractor services.

 **Draft permit development** : Interaction with the permitting authorit y on draft permit development.

 **Gap**
**- filling development**  : Development of periodic monitoring gap

- fill ing, if applicable.

 **Public hearing participation.**
 **Operate gap**
**- filling periodic monitoring:**  Operation of monitoring equipment and the taking and keeping of records, where necessary

.  **Monitoring reports** : Preparing semi

- annual monitoring data reports, including data anal ys is, responsible official certification, and report submission (annual burden for both reports). In cludes preparing and submitting annual compliance certification.

 **Permit revisions** : Preparing applications for permit revisions.
 **Permit re newal**  : Preparing permit renewal applications.
 **Other activities associated with permit renewal** , including discussions with permitting authority and public hearing participation.
5. THE INFORMATION COLLECTED

– AGENCY ACTIVITIES, COLLECTI ON METHODOLOGY AND INFORMAT ION MANAGEMENT 5(a) Agency

Activities In its role as the permitting authorit y for most of the sources subject to the part 71 program, the EPA carries out the same activities listed above for delegate permitting authorities , with the exception of those activities that involve interaction between the delegate permitting authorities and the EPA. When overseeing a delegate agency , the EPA carries out the activities listed below.
**EPA OVERSIGHT ACTIVITIES**

 **Review proposed permits** and permit revisions to determine if they provide for compliance with all applicable requirements.

 **Review monitoring** provisions of proposed permits or permit revisions to see if they contain applicable requirements or to add periodic monitoring if needed

.  **Consult** with the delegate agency on an y problems detected in the proposed permit or permit revision including interaction related to fact finding on permit petitions.

 **Other Program Oversight:** review annual reports of enforcement activities, develop formal EPA responses to public petitions , and review changes to delegated programs. 5(b ) Collection Methodology and Management For the part 71 program, when the EPA is the permitting authority , the EPA will receive data from sources in much the same manner as that established for sources reporting to state and local agencies under part 70. Thus, when the EPA is the permitting authorit y, we will retain copies of each permit application (including any application for permit modification), each draft permit, and each final permit.DRAFT

10 When a delegate agency

is the permitting authority , the delegate agency will recei ve copies of these documents. 5( c ) Small Entity

Flexibility Title V provides few ways to mitigate the effects of operating permit regulations on small entities. Under section 502(a) of the Act, the Agency has exempted or deferred applicability of title V for those non - major source categories for which compliance with title V will be impractical, infeasible or unnecessarily

burdensome. The Agency has not analyzed how man y of these non

- major sources will be small businesses, but believes that a large perce ntage may fall under that definition. In accordance with the analy tical requirements established under the Regulatory Flexibility

Act (RFA) and the Small Business Regulatory Enforcement Fairness Act (SBREFA), the Agency has determined that there are no a dverse effects to be identified with regard to small entities and small businesses. T his ICR renewal represents a de crease in burden compared to the 20 12 ICR renewal, due to the transition of a significant number of sources to the p art 70 program implement ed b y the SUIT under part 70 and due to certain overestimates of expected source population made in the previous analy sis , rather than due to any new information collection requirements

. 5( d) Collection Schedule Items identified in section 4 (b)(i) are l isted below with their schedule for submission. **Permitting Authorities (submitted to the EPA):**
 Application for permits, permit revision and permit renewal should be submitted to the EPA with the proposed permit or permit revision.

 Draft/proposed permits, permit revisions or permit renewals should be submitted when the state wants to commence the EPA review period of the proposed permit or permit revision.

 The final permit should be submitted to the EPA soon after it is issued, but there is no deadline in part 7 1 for this submission.

 The annual report of enforcement activities is submitted to the EPA annually , but part 7 1 does not specify

a date.

**Sources (submitted to permitting authority):** 
 New permit applications are due within 1 y ear after a source becomes subject to the program

.  Permit revision applications are submitted by a source when it wishes to make a change to its permit. There is no schedule for these submissions in that they are triggered by

modifications by the source.

 Permit renewal a

pplications are due at least 6 months prior to expiration of the permit.
 Semi

- annual monitoring reports are due to be submitted to the permitting authority twice a y ear on dates specified b y the permitting authorit y.
 Annual compliance certification reports are due annually on a date specified by

the permitting authority

.DRAFT

11 6. ESTIMATING THE BURDEN AND COST OF THE COLLECTION 6(a) Estimating Respondent Burden The following tables show the burden estimates for each activity described above in section 4(b)(i i) for sources and permitting authorities . These burden estimates are primarily based on the approved ICR for the part 70 program and have been updated to incorporate the assumptio ns we made in the previous ICRs for part 70 and 71 concerning the impacts of the Flexible Air Permits Rule (FAP) 3 and the GHG Tailoring r

ule 4 , 5

. In the previous I CRs , we showed the effects of the two regulations separatel y from the s o - called “baseline ” impacts that would have occurred without the two rules . In this I CR, for the sake of simplicity , we have incorporated the FAP and the GHG Tailoring rule assumptions into a single set of assumption , as shown in tables 2 , 3 , 5 and 6. N ote that we have include d a table as Attachment 2 that provid es a detailed explanation of th e revisions we have made to create a single, consolidated set of assumptions for the part 71 program going forward

. Also note that in section 6(d), concerning the respondent universe, we discuss the effects of the June 2, 2014, Supreme Court decision, Util ity Air Regulatory Group v. EPA , impacting the GHG Tailoring r ule , on our estimates of the respondent universe. Table 2 display s the expected source burden for when either the EPA or a delegate agency is the permitting authorit y. Table 3 display s the expe cted burden for all of the specific tasks necessary for any permitting authorit y (i.e., a delegate agency or the EPA). The Agency

derived its estimates in Tables 2 and 3 from previous consultations with fewer than nine respondents from the regulated community on the burdens and costs of the permit programs ; data collected b y the EPA from permitting authorities on the numbers of permits issued, renewed and modified in the course of program administration ; and based on our anal ys is of data submitted within the context of state and local permitting program evaluations. In the initial ICR for part 71, the Agency assumed sources are indifferent (from an effort perspective) between reporting to the f ederal government and reporting to a state permitting autho rity

. 6

3 74 FR 51418, October 6, 2009

. 4 75 FR 31514, June 3, 2010 and 77 FR 41051, July 12, 2012. 5 The Office of Management and Budget (OMB) approved ICR change requests for both of these rules, EPA tracking numbers 1703.09 and 1587.11, respectivel y, prior to the approval of the 2012 ICR updates for parts 70 and 71. In general, the FAP rule allowed for upfront approval for certain permit changes, in order to avoid significant permit modifications (SPM) and m inor permit modifications (MPM) processing, while the GHG Tailoring rule, as originally promulgated, “tailored” the requirements of the Act to requir e certain GHG sources, for the first time, to obtain permits based on GHG emissions and required GHGs to be treated the same as other pollutants once a permit has been issued. 6 May , 1995, United States Environmental Protection Agency , Part 71 Information Collection Request , p 19.DRAFT

12 **Table 2. Average Source Burden by Activity Activity**  **Burden per Source or Permit**  Initial Permit Application 330 Draft Permit Interaction 50 Gap Filling Monitoring Development 44 Public Hearing Participation 11 Operate Gap Filling Monitoring 200 Prep Monitoring/Compliance Reports & Compliance Certifications 80 Significant Permit Revisions (10% of permits) 84 Minor Permit Revisions (50% of permits) 44 Administrative Amendments (50% of permits) 8 Permit Renewal Application 220 Other Permit Renewal Activities 22

**Table 3. Average Permitting Authority Burden by Activity**

**Activity Part 71 Burden**  **Per Permit or Program**  Program Administration 3500 Permit Application Review 110 Draft Permit Preparation 165 Comment Period Notification 11 Public Hearing (2% of permits) 110 Analyze Public Comments (2% of permits) 44 Permit I ssuance 9 Significant Permit Revisions (10% of permits) 94 Minor Permit Revisions (50% of permits) 34 Administrative Amendments (50% of permits) 5 Permit Renewals 97 Review Monitoring/Compliance Reports 15 EPA Oversight of NNEPA Permits 2.5
6(b) Estimating Respondent Costs 6(b)(i) Estimating Labor Costs In order to improve the accuracy of burden estimates, this I CR renewal updates the source labor rates to values in 2014 dollars based on recent publications by the Bureau of Labor Statistics (BL S).DRAFT

13 The labor rate used to calculate sources’ labor cost for this I CR renewal is $ 66 /hr. This source labor rate was calculated on the assumption that , while most of the labor for sources will be performed b y Environmental Engineers, approximately 50 percent of the labor hours expended for two of the activities listed above in Table 2 will be carried out b y Environmental Engineering Technicians. Specifi call y, we assumed that Environmental Engineering Technicians will expend half of the labor hours to “Operate Gap

- filling Monitoring” and “Prepare Monitoring Reports and Compliance Certification .” To derive this composite labor rate, we obtained the mean hourl y wage for Environmental Engineers of $ 41.12 from the most recent BLS Occupational Employ ment Statistics, which gives wages as of May 201 3

. 7 Similarly , we obtained the May 201 3 mean hourly

wage for Environmental Engineering Technicians of $ 23.64

. 8 In each case, we escalated the hourly wages to September 2014 using the BLS ECIfor private industry

workers, resulting in hourly wages of $ 42.06 for Environmental Engineers and hourly wages of $ 24.18 for Environmental Engineering Technicians. 9 An example escalation calculation for Environmental Engineers is as follows:

= ×

= $41

. 12 × 118

. 40

121

. 1 = $42

. 06 We then calculated a weighted average hourl y wage for sources using the total hours projected for sources over the 3 ye ars of this I CR apportioned between Environmental Engineers and Environmental Engineering Technicians as discussed above. This calculation results in a weighted average hourly wage of $ 36.80 . Finall y, to determine the total labor rate, we assumed an 80 percent factor to account for benefits and overhead, which we believe to be representative. The resultant rate was rounded to the nearest dollar, yi elding $6 6 /hr in 201 4 dollars. This labor rate was applied to all source burden hours to calculate the sources’ labor costs. For delegate permitting authorities, we have maintained the practice in recent I CR renewals of using the same labor rate calculated for the EPA based on federal wage tables. The resulting labor rate for delegate permitting authorities is $5 3 /hr. This calculation is discussed further below in section 6(c)

. 6(b)(ii) Estimating Capital and Operating and Maintenance (O& M) Costs

7 Environmental Engineer hourly wages obtained from “Occupational Employ ment Statistics, Occupational Emplo ym ent and Wages, May , 2013, 17

- 2081 Environmental Engineers,” U.S. Dept. of Commerce, BL S. ( http://www.bls.gov/oes/current/oes172081.htm accessed October 14, 2014) 8 Environmental Engineering Technician hourl y wages obtained from “Occupational Employ ment Statistics, Occupational Employ ment and Wages, May , 2013, 17

- 30 25 Environmental Engineering Technicians,” U.S. Dept. of Commerce, BL S. ( http://www.bls.gov/oes/current/oes173025.htm accessed October 14, 2014). 9 Employ ment Cost Indexes for sources obtained from “Employ ment Cost Index

– September 2014, Table 2 and September 2013, Table 2. Employ ment Cost Index for wages and salaries, b y occupational group and industry (Seasonall y adjusted),” U.S. Dept. of Commerce , BL S, Private Industry Workers

- All Workers. ( http://www.bls.gov/news.release/archives/eci_11192013.pdf and http://www.bls.gov/news.release/archives/eci_10312014.pdf both accessed October 2014)DRAFT

14 The EPA believes that sources will in cur little or no capital cost to comply with part 7 1 requirements. Even if a part 7 1 permit applicant is a brand new company and the prospective source is a “greenfield” source (the EPA estimates less than 1 percent of sources 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 . Monitoring can require capital expenditures for new sources or new operations at existing sources, but these expenditures generall y are accounted for in the I CRs for the applicable requirements under which they are required (e.g., NSPS or NESHAP). The one exception to this is the part 7 1 requirement to develop and operate gap

- fillin g monitoring to assure compliance with applicable requirements in certain, limited situations where the applicable requirements themselves do not require adequate monitoring. However, such gap

- filling monitoring ty pically consists of periodicall y monitorin g and recording operating conditions or other parameters that the source alread y monitors for operational purposes. Thus, we believe that capital costs are negligible for sources. Delegate p ermitting authorities similarly incur negligible capital costs. A s with sources, we believe that most, and perhaps all, of the computers and other office equipment needed to administer the part 7 1 program will be part of the permitting authority ’s office inventory . In an y case, the one existing delegate permitting autho rit y operate s a mature part 70 programs, so there is no need for initial equipment purchases to outfit a new program office. Since the purchase of capital equipment is believed to be an insignificant factor under part 7 1 , the EPA assumes the operation, m aintenance or services for same are negligible. Further, once a permit is issued, there is minimal O&M cost associated with it. It remains unaltered unless it must be revised, and such revisions are accounted for as burden hours in section 6(a) above. As n oted previously , part 7 1 requires sources to submit deviation reports, semi

- annual reports of monitoring and annual compliance certification reports, but these reports generally are coordinated with similar reports that are required under the source’s applicable requirements. The O&M costs (e.g., photocopying and postage) for the reports required under the applicable requirements are included in the IC Rs for those rules, and we believe that it would constitute double counting to include such costs here as well. In addition, electronic reporting b y sources is increasingl y prevalent, with no associated O&M costs. Accordingl y, we include no O&M costs in this I CR for sources. For parallel reasons, we believe that O&M costs for delegate permitting authorities will be minimal, and none are included in this I CR. 6(b)(iii) Capital/Start

- up vs. O& M Costs Capital/start

- up and O&M costs are non

- labor related costs. One

- time capital/start

- up costs are incurred with the purchase of durable goods needed to provide information. According to the PRA, capital/start

up cost should include, among oth er items, preparations for collecting information such as purchasing computers and software, monitoring, sampling, drilling and testing equipment. As a practical matter, most these costs are not ty pical of the costs associated with preparing a part 7 1 perm it application. As discussed in the previous section, we believe that the gap

- filling monitoring requir ed of some sources under part 71 will not involve capital spending. For the same reason, the O&M costs associated with start

- up capital equipment are zer o for this I CR. In addition, we believe that overlapping reporting accounted for in other IC Rs and electronic reporting result in zero O&M costs for this I CR. 6(b)(iv) Annualizing Capital Costs Ty pically , annualized capital cost would be derived from a d iscounted net present value of the stream of capital costs that would occur over the life of the permit, or the ICR, whichever is shorter. However, in the case of the part 7 1 Operating Permit Program, there are onl y labor costs for preparing and processingDRAFT

15 permit applications, conducting gap

- filling monitoring, and preparing and reviewing reports. Labor costs are expensed when incurred and not amortized. Therefore, the annualized capital costs for this program are zero. 6(c) Estimating Agency Burden and Co st The bulk of the EPA’s burden and cost under the part 71 program comes from our role as the primary permitting authorit y. We estimate that the EPA will be the permitting authority for approximately 8 3 of the 9 8 sources projected to be subject to the part 71 program b y the end of this I CR renewal period. Because we cannot predict the precise division of activities between the EPA and the delegate permitting authorities (e. g. , the exact mix of sources needing permi t revisions [i.e., significant and minor permit modifications and administrative amendments] , sources needing permit renewals or permits requiring public hearings), we continue the practice from previous IC Rs of calculating the total burden for permitting authorities (based on addressing all part 71 sources) and then apportioning that burden between the EPA and the delegate permitting authorities based on the projected number of sources covered b y each. This calculation is detailed below in section 6(d) whe re we address respondent burden and cost. The EPA also incurs burden and cost for oversight of delegate permitting authorities. The estimated burden associated with the each of the activities listed above in section 5(a) for the EPA is presented below in Table 4

. The estimated EPA labor rate for this ICR is $5 3 /hr. The rate reflects the assumption that the EPA personnel overseeing the part 71 Operating Permit Program are classified as Grade 12, Step 5. 10 The corresponding salary

is loaded with benefits at the standard rate of 60 percent

. This is an increase in loaded EPA labor rates from that used in the 20 12 ICR renewal for part 71 of $ 52 /hr (which was based on a combination of assumptions concerning various staff, management and support staff time).

**Table 4**  **. Average EPA Burden by Activity for Oversight**  **of Delegate Agencies**

**Activity Burden Per Permit**  **or Program (Hours)** Review Proposed Permits* New Permits Significant Permit Modifications Minor Permit Modifications 20 / permit 8 / revision 1 / revision Consultation New Permits (25%) Significant Permit Modifications (25%) Minor Permit Modifications (25%) 8 / permit 8 / permit 1 / permit Program Oversight 50 / program / y ear Review the Annual Enforcement Activity Reports 10 / report * Includes the burden for review of periodic monitoring, when required

10 Federal Labor Cost obtained from U.S. Office of Personnel Management 2014 General Schedule Table 2014

- GS. Hourl y l abor rate assumed is GS

- 12, Step 5 (Technical Labor).DRAFT

16 Past experience with part 70 (adjusted for incremental GHG Tailoring Rule burdens) suggests that oversight of the delegate agency averages about 2 .5 hours per source per ye ar on an aggregate basis (see Table 3) . In the case of this delegate agency (the N NEPA ) , all of the 1 5 part 71 permits they will implement as a delegate agency were previousl y issued by the EPA and the delegation agreement does not provide for an y new p ermits to be issued by the NNEPA . Thus, the EPA believes the assumption of 2 .5 hours per source for EPA oversight will be appropriate due to the reduced scope of the program and the small number of permits involved. As a result, the estimate d EPA baseline burden to oversee the delegate agency

will be approximately 3 8 hours per y ear at a cost of $1, 988 per year
. 6(d) Estimating the Respondent Universe and Total Burden and Costs As mentioned earlier, there is currently one delegate permitting authorit y under part 71 , the NNEPA . We do not expect any

additional delegations during the period of this ICR renewal. We project that by

the end of the period , the re will be 90 sour ces in Indian country (1 5 of which are administered b y the NNEPA), up to 3 OCS sources, up to 3 DPWA sources, and up to 2 permit s issued bec ause of EPA objection to a part 70 permit

. Table 5 shows the number of existing and projected source respondents during the 3 ye ars of this ICR renewal. The EPA has issued 69 part 71 permits to the 85 sources that will be subject to part 71 by June 30 , 201 5 . Thus, at the beginning of this I CR period , there will be a backlog of 16 existing sources that have not yet received their initial permits ( these sources have submitted their initial permit appl ications, so this I CR includes no burden for preparation for application process )

. The Agency projects that the backlogged permits will all be issued during the 3 y ears of this ICR, 6 in the first y ear and 5 each in ye ars 2 and 3. W e estimate that a total of 29 additional permits (13 new sources and 16 backlogged permits) will be issued for a total of 98 permits to be effective by the end of the anal ys is period . We calculate the burden for the new sources to include all the activities associated with obtain ing an initial permit

. O n June 23, 2014, the U.S. Supreme Court issued a decision, Utility Air Regulatory Group v. EPA , which impacted the EPA’s permitting program for sources emitting GHGs, as described in the GHG T ailoring Rule. In relevant summary , the Court held that EPA may not treat GHGs as an air pollutant for purposes of determining whether a source is a major source for PSD or the title V permitting program. This means that GHG emissions may not independently

trigger permitting require ments under title V; thus, we will no longer track the number of permits that will be required to get a part 71 permit solely due to GHG emissions , and this I CR renewal reflects that outcome . This dec i sion will potentially reduce the number of sources subj ect to part 71 and it may theoreticall y lead to res c ission of an y part 71 permits that may have been issued due solely to GHGs. At this time, we do not have information indicating there are part 71 permits that are affected b y the Supreme Court’s decision. As a result, we do not have information indicating that part 71 permits may be subject to rescission for that reason or how such a process would occur; thus, we assume that no such rescissions will occur during the period of the IC R, which will potentiall y overestimate burden.DRAFT

17 D uring the period of this ICR, a number of previously

- issued part 71 permits will have to be renewed ( the term of a part 71 permit is 5 ye ars)

. W e estimate that 42 part 71 permits will be nearing expiration and have to be renewed and that 24 backlogged renewals will also need to be issued

. The Agency projects that these 66 permit renewals will be issued in equal numbers each y ear (i.e., 2 2 renewals per ye ar). Table 6 lists the burden categories, expected number of occurrences for each, and the associated burden and costs for all part 71 sources when the EPA or a delegate agency is the permitting authorit y. The quantities in the “Number of A ffected P ermits” column ar e from direct assessments of the 9 8 permits expected to be issued and effective by the end of the period covered b y this I CR. The burden and cost estimates in Table 6 are based on the assumptions in Ta ble s 2 and 5, and reflects certain burden and activity assumptions that have been revised since the last I CR update. The prior anal ys is included OMB

approved FAP and GHG Tailoring Rule changes in separate tables, but for the sake of simplicity going forward , we have incorporated the different sets of assumptio ns into a single set of in T ables 6 and 7 ; the revised assumptions are detailed in Attachment 2

. Table 7 lists the burden categories for permitting authorities (the EPA and delegate agencies), the expected number of permits involved , and the expected burd en and cost for each category (based on the assumptions of T able 3 and 5 ) . Since the burden per activit y assumptions and wage rates are the same for the EPA and delegate agencies and we cannot predict the precise division of activities between the EPA and the delegate permitting authorities, we calculate the total for all permi tting authority activities across all the permits. For the purposes of the bottom line analy ses of tables 8 through 12, w e prorate the total permitting authority burden between the EPA and the one delegate agency ( the NNEPA) on the basis of the number of p ermits that we project each will administer during the period of th e IC R renewal. Specifically , we apportion EPA burden at a rate of about 85 percent ( 8 3 of the 9 8 total sources) and about 15 percent (15 sources) for the delegate agency
. **Ta bl**  **e 5. Id** 

**en tification**  **of A ffe**  **cte d**  **Entitie s**  **an d**  **Pe rmi** **t Is su**  **an ce**  **S ch** **ed ul**  **e**

**In te**  **rv al**  **Sou rc**  **e**

**Po pul**  **ati on**  **Ne w**  **Sou rc**  **es Pe**  **rmi ttin** **g**

**Bac kl** **og Addi** **tio na**  **l**

**Pe rmi**  **ts Is**  **su ed**  **To tal P** **er**

**mi ts**  **Is su** **ed** St art of Y r 1: 85 16 0 69 Endof Y r 1: 90 6 11 80 Endof Y r 2: 94 5 9 89 Endof Y r 3: 98 5 9 98

**3 Y R t**  **otals =**  **29**

0 5 4 4 **13**DRAFT

18 **Ta bl** **e 6. B**  **urde n**  **an d**  **Co st**  **of Sou** **rc e**  **Activ itie**  **s So**  **urc es**  **Hou rl** **y La** 

**bo r**  **Ra te**  **= $66.00** 

**Activity Bu** **rde n**  **pe r**  **Pe rmi** **t (Ho**  **urs )**  **Nu mb**  **er**

**of Affe**  **cte d**  **Pe rmi** **ts ove**  **r 3 Y**  **ea r**  **IC R**  **To tal** 

**3-Y ea**  **r Bu** **rde n**  **(Hou rs**  **) To**  **ta l** 

**3-Y ea**  **r Co**  **st (2**  **014 $)** In it ia l Perm it A ppl ic ati on 330 13 4,290 $283,140 Dra ft Per mit In te ra cti on 50 29 1,450 $95,700 Ga p Fi lling Mon itor ing Dev el opm en t 44 15 660 $43,560 Pu bl ic Heari ng Pa rti ci pati on 11 1 11 $726 Yr 1: 35 7,000 $462,000 200 Yr

2: 40 8,000 $528,000 Yr 3: 45 9,000 $594,000 Yr 1: 69 5,520 $364,320 80 Yr

2: 80 6,400 $422,400 Yr 3: 89 7,120 $469,920 **Re vi**  **si on** **s/**

**Mo di** **fication s:**  Yr 1: 7 588 $38,808 84 Yr

2: 8 672 $44,352 Yr 3: 9 756 $49,896 Yr 1: 32 1,408 $92,928 44 Yr

2: 36 1,584 $104,544 Yr 3: 41 1,804 $119,064 Yr 1: 35 280 $18,480 8 Yr 2: 40 320 $21,120 Yr 3: 45 360 $23,760 **Re vi**  **si on**  **Su bt**  **ot al** **s =**  **7,772 $512,952**  Perm it R en ewal A ppl ic at io n 220 66 14,520 $958,320 Ot her Perm it R en ewal Act iv it ie s 22 66 1,452 $95,832 **To tal B**  **urde n**  **an d**  **Co st** 

**for A**  **ll Sou** **rc es**  **Ov er** 

**3 Y rs**  **= 73,195**  **$4,830,870** Operate Gap Fi

lling M on itori ng

Prep Mon itor ing/Com pl ianc e R epor ts & Com pl ianc e C erti

fic at io ns

Mi nor Per mi t Re visi ons (5 0% o f p er

mi ts) Si gni fi can t Per mi t Revis ions (1 0% o f p er

mit s)

Ad mi ni strati ve Amen dme nt s (5 0% o f p erm

it s)DRAFT

19 6(e) Bottom L ine Burden Hours and Cost Tables The burden and costs associated with part 7 1 are shown above in Tables 6 and 7 for sources and permitting authorities (both the EPA and delegated agenc y) , respectivel y. The burden and costs incurred by the EP A in its oversight role is discussed above in section 6(c). 6(e)(i) Respondent Tally Table s 8 and 9 show the bottom line average annual burden and cost for the respondents ( source s and the delegate permitting authority) under this I CR renewal for implementation of the part 7 1 Operating Permit Program between July 1, 201 5 and June 39, 201 8

. As table 8 shows, the Agency anticipates it will take approximately 24 ,000 hours per ye ar for the 98 sources subject to part 71 permitting to perform all the functions required by title V. This averages out to about 2 4 9 hours per source

– just over 6 weeks of a full time employ ee’s time. Table 9 shows the cost associated with that burden to be relativel y small

– approximately $1 6 , 4 00.
For the single delegate permitting authorit y (the NNEPA) , Tabl e s 8 and 9 show that we estimate the burden associated with the part 71 Operating Permit Program will be approximately 1, 7 00 hours per ye ar, or about 116 hours and $ 6, 1 00 for each of the 1 5 permits administered by the delegate agency
. However, this cost cannot be considered an Unfunded Mandate from the federal government, because the net cost to permitting authorities for their management of an operating permit program must, by law, be passed on to sources in the form of permit fees of sufficient magnitude to fully offset all permit **Ta bl**  **e 7. B**  **urde n**  **an d**  **Co st**  **of P er**  **mi ttin** **g A ut** **ho ri** 

**ty A ctivitie**  **s Pe**  **rmi tting**  **Au th**  **or**

**ity Hou**  **rly Labo**  **r Ra** 

**te =**  **$53.00**

**A ctivity**  **Bu rde**  **n pe**  **r Pe**  **rm it**  **(Ho urs**  **) Nu** **mbe r**  **of**

**Affe cte**  **d Pe**  **rmi**

**ts ove**  **r 3 Y**  **ea r**  **ICR To**  **tal**

**3-Y ea**  **r Bu** **rde n**  **(Hou rs**  **) To**  **tal**

**3-Y ea**  **r Co**  **st (2014 $)**  Prog ram Adm in is trati on 3500 1 10,500 $556,500 Perm it A ppl ic at io n Re vi ew 110 13 1,430 $75,790 Draf t Perm it Preparati on 165 29 4,785 $253,605 Com me nt Peri od N ot ific ati on 11 29 319 $16,907 Pu bl icH eari ng (2% of perm its) 110 1 110 $5,830 An al yze Pu bl icCo mme nts (2% of

perm it s) 44 1 44 $2,332 Perm it I ssu an ce 9 29 261 $13,833 Si gni fic an t P erm it R ev is io ns( 10% of

perm its) 94 24 2,256 $119,568 Mi no r P erm it R ev is io ns (50% of

perm its) 34 109 3,706 $196,418 Admin is trati veA me ndme nts (50% of

perm it s) 5 120 600 $31,800

**Re vi** **si on**  **Su bt**  **otals =**  **6,562 $347,786**  Perm it R en ewal s 97 66 6,402 $339,306 Yr 1: 69 1,035 $54,855 Yr 2: 80 1,200 $63,600 Yr 3: 89 1,335 $70,755 **To tal**  **Bu rde**  **n an** **d Co**  **st**

**f or**  **A ll**  **Pe rm**  **it Au th** **or itie**  **s Ov**  **er**

**3 Y rs**  **= 33,983**  **$1,801,099** 15 Re vi ew Mon itori ng/Com pl ianc e R eportsDRAFT

20 management costs. Therefore, the true annual cost to the delegate permitting authority under part 71 is zero, and the true annual cost to sources is the sum of their direct costs

– T able 9 shows these annual costs to be about $ 1

. 6 million for sources and about $92,000 for the delegate agency for a total annual cost to respondents of about $1.7 million.

**Table 9. Bottom Line Average Annual Respondent Cost (2014$)** 

**Respondent Number of**  **Affected Entities**  **Average**

**Annual Cost Average** 

**Annual Cost per**  **Respondent Average** 

**Annual Cost per Source**  **(2014$) (2014$)**  **(2014$)** Sources 98 $1,610,290 $16,432 $16,432 Delegate Permitting Authority 1 $91,893 $91,893 $6,126

**Totals = 99**  **$1,702,183 NA**  **NA**
6(e)(ii) The Agency Tally Table 3 display s the activities undertaken by the federal government (EPA) for the part 71 program in its role as permitting authority , and Table 4 shows the activities undertaken b y the EPA in its oversight role for delegate permitting authorities. Sectio n 6(c) gives the derivation of hourly costs for the EPA. Table 7 gives the expected burden and cost for the EPA as permitting authorit y, and section 6(c) discusses the baseline burden and costs for the EPA in overseeing delegate permitting authorities. Tab le 10 shows the annual cost to EPA in its role as permitting authority to be approximately $500,000 and the annual cost of EPA oversight of the delegate agency to be about $2,000. **Ta bl**  **e 8. B**  **otto m**  **Li ne**  **A**

**ve ra**  **ge A** **nnua l**  **Re sp**  **on de**  **nt Bu** **rde n**  **(Ho urs**  **)**

**Re sp**  **on de**  **nt Av**  **er age**  **A nnua**  **l Bu** **rde n**  **Av er** 

**age A** **nnua l**  **Bu rde**  **n pe**  **r Re**  **sp on** **de nt**  **Av er**  **age An** **nua l**  **Bu rde**  **n pe**  **r Sou** **rc e**  **(h ou** **rs )**  **(h ou** **rs )**  **(h ou**  **rs )**  Sou rc es 98 24,398 249 249 De le gate P erm

it ti ng Au th ori ty 1 1,734 1,734 116 **To tal** **s =**  **99 26,132**  **NA NA** 

**Nu mb**  **er of**  **Af fe**  **cte d**  **Entitie s** DRAFT

21 As can be seen from Table 10 , the total, b urden incurred b y the EPA for the part 7 1 Operating Permit Program is estimated to be about 9 , 6 00 hours and $ 500 ,000 per ye ar , or an average of approximately 116 hours and $ 6 , 1 00 for each of the 83 sources to be administered b y the EPA. In overseeing the delegate permitting authority , the EPA expects an annual burden of less than 4 0 hours and $ 2 , 0 00 per ye ar, for an average of 3 hours and about $1 3 0 for each of the 1 5 sources administered by the NNEPA. 6(e)(iii) Variations in the Annual Bottom Line The annual burden is not expected t o change significantly from y ear to y ear over the 3 y ears covered by this I CR renewal. However, the burden is expected to increase incrementally each ye ar as the number of new sources subject to permitting increases b y about 3 sources per ye ar or about 3 p ercent per ye ar. 6(f) Reasons for Change in Burden Table 11 compares the respondent burden in the 2012 I CR renewal with the burden in this I CR renewal. The approved burden level in the previous ICR for source respondents was about 36,000 hours per year, while this I CR estimates total annual source burden at over 24,000 burden hours per year. This change in burden from the previous I CR renewal is primarily due to updated estimates of the number of sources and permits subject to the part 71 programs , rather than an y new federal mandates (i.e., changes in paperwork requirements for respondents)

. There are several reasons for the changes in estimates in this I CR renewal compared to the previous ICR renewal

. First, there has been a reduction in the number of sources subject to permitting due to the approval of the Southern Ute Indian Tribe’s part 70 program, which has resulted in the transition of about 36 permi ts from the part 71 program ( implemented b y EPA ) to a part 70 program ( implemented b y the SUIT )

. Second, the previous analy sis overestimated the number of new sources that would get permit during the term of the ICR

– The previous analy sis assumed 174 perm its at the end of the anal ys is (June 30, 2015) , while the current analy sis estimate s a total of 85 existing permits at the beginning of the anal ys is (June 30, 2015)

. Table 11 also shows the annual respondent burden for the delegate permitting agency , the NNEPA , of about 1,700 hours, while the previous anal ys is showed about 13,000 hours annual ly

. Again, this change in burden from the previous I CR renewal is primarily due to updated estimates of the number of sources subject to permitting, rather than an y n ew federal mandates. Specifically , the change in burden is primarily due to the way

we have apportioned the permitting authorit y burden between the EPA and the delegate agency , rather than changes in Federal mandates . In the previous analy sis, there were 14 permits under the delegate agency , representing only about 8% of the total permitting authorit y burden (14 delegate permits versus 174 total permits), while in this analy sis, we assume 15 permits will be under the delegate agency , accounting for about 15% of the apportioned burden (15 delegate permits versus 98 total permits). **Ta bl**  **e 10. Bot** **to m**  **Lin e**  **Av er**  **age A** **nnua l EP** 

**A Bu** **rde n**  **an d**  **Co st** 

**AGEN CY** 

**BU RDE**  **N AGEN**  **CY C**  **OS T** 
**EPA Ro**  **le Nu** **mb er**  **of Sou** **rc es**  **An**

**nua l**  **EPA Bu** **rd en**  **Av er** 

**age A** **nnua l**  **Bu rde**  **n pe**  **r Sou** **rc e**  **Av er** 

**age Annua**  **l EPA**  **Co st**  **Av er** 

**age An**  **nua l**  **Co st**  **pe r**  **Sou rc**  **e (h** **ou rs**  **) (h** **ou rs**  **) (2014$)**  **(2 014$)**  Pe rm it ti ng Au th or it y 83 9,594 116 $508,474 $6,126 Ov ersi ght of D el eg at e Age nc ie s 15 38 3 $1,988 $133 **To ta**  **l =**  **98 9,632**  **NA $510,462**  **NA**DRAFT

22 6(g) Burden Statement Table 1 2 shows the total annual average burden , the annual burden per respondent , and annual burden per sources for each t yp e of respondent, i.e. sources and the single delegate permitting authority

.

For the federal government, the EPA is the only affected entity

covered b y this I CR. We project an annual burden of about 9,600 hours or about 116 hours per source in our role as permitting authority and about 3 hours per source in our role of oversight of the delegate agency

. Burden means the total time, effort, or financial resources expended b y persons to generate, maintain, retain, or disclose or provide inform ation 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 informat ion, and disclosing and providing information; adjust the existing ways to comply with an y 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 display s a currently valid OMB control number. The OMB control numbers for the 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 an y suggested methods for minimizing respondent burden, including the use of automated collection techniques, the EPA has established a public docket for this I CR under Docket ID Number EPA

- HQ

OAR

- 2004

- 001 6 , 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 **Ta bl**  **e 11. B**  **urde n**  **Ch an** **ge f**  **ro m**  **2012 IC R**  **to C urre**  **nt IC**  **R (ho**  **urs )** 

**Ty pe**  **of R esp**  **on de**  **nt Av**  **er age**  **An nua**  **l Bu** **rde n**  **in 2012 IC**  **R Av**  **er**

**age A** **nnua l**  **Bu rde**  **n in** 

**IC R**  **Re ne**  **wa l**  **Di ffe**  **re nc**  **e % C**  **ha ng**  **e (h** **ou rs**  **) (h** **ou rs**  **) (h** **ou rs**  **) (h** **ou rs**  **)** Sou rces 36,375 24,398 -1 1,977 -3 3% De le gate P er

mit ti ng Au th ori ty 1,254 1,734 480 38% **To ta**  **l =**  **37,629 26,132**  **-11,497 NA** 

**Ta bl**  **e 12. B**  **urde n**  **St ate**  **me nt**  **(h ou** **rs )** 
**Ty pe**  **of R esp**  **on de**  **nt Nu** **mb er**  **of Re**  **sp on** **de nt**  **s To**  **tal An nua**  **l**

**Bu rde**  **n (Hou** **rs )**  **Annua l**  **Bu rde**  **n**

**pe r**  **Re sp** **on de**  **nt (Hou** **rs )**  **An nua**  **l Bu** **rde n** 

**pe r**  **Sou rc**  **e*** **(Hou rs**  **)** Sou rces 98 24,398 249 249 De le gate P er

mit ti ng Au th ori ty 1 1,734 1,734 116 * Per -sour ce f

ig ur es for the d

el egat e p erm

itti ng au thor it y are b ased

on the 1 4 sources ad

mi ni stered by the NNEP A.DRAFT

23 Reading Room is open from 8 :30 a.m. to 4:30 p.m., Monday through Friday , excluding legal holiday s. 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 o f 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 access those documents in the public docket that are available electronical ly . When in the sy stem, 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

- 2004

- 001 6 and OMB Control Number 2060

- 0 336 in an y correspondence.

ATTACHMENT 1

THE STATUTORY REQUIREMENTS FOR REPONDENT INFORMATIONDRAFT

24 **SECTIONS 502 THROUGH 504 OF TITLE V OF THE CLEAN AIR ACT**

**SEC. 502. PERMIT PROGRAMS** (a) Violations.

- After the effective date of an y permit program approved or promulgated under this title, it shall be unlawful for an y person to violate an y requirement of a permit issued under this title, or to operate an affected source (as provided in title IV), a major source, any other source (including an area source) subject to standards or regulations under section 111 or 112, any other source required to have a permit under parts C or D of title I , or any other stationary

source in a category designated (in whole or in part) b y regulations promulgated b y the Administrator (after notice and public comment) which shall include a finding setting forth the basis for such designation, except in compliance with a permit issued by

a permitting autho rit y under this title. (Nothing in this subsection shall be construed to alter the applicable requirements of this Act that a permit be obtained before construction or modification.) The Administrator may , in the Administrator's discretion and consistent with the applicable provisions of this Act, promulgate regulations to exempt one or more source categories (in whole or in part) from the requirements of this subsection if the Administrator finds that compliance with such requirements is impracticable, in feasible, or unnecessaril y burdensome on such categories, except that the Administrator may not exempt any

major source from such requirements. (b) Regulations.

- The Administrator shall promulgate within 12 months after the date of the enactment of the Clean Air Act Amendments of 1990 regulations establishing the minimum elements of a permit program to be administered by any air pollution control agency . These elements shall include each of the following: (1) Requirements for permit applications, including a standard application form and criteria for determining in a timel y fashion the completeness of applications. (2) Monitoring and reporting requirements. (3)(A) A requirement under State or local law or interstate compact that the owner or operat or of all sources subject to the requirement to obtain a permit under this title pay an annual fee, or the equivalent over some other period, sufficient to cover all reasonable (direct and indirect) costs required to develop and administer the permit progr am requirements of this title, including section 507, including the reasonable costs of

- (i) reviewing and acting upon any application for such a permit, (ii) if the owner or operator receives a permit for such source, whether before or after the date of the enactment of the Clean Air Act Amendments of 1990, implementing and enforcing the terms and conditions of any

such permit (not including any court costs or other costs associated with an y enforcement action), (iii) emissions and ambient monito ring, (iv) preparing generall y applicable regulations, or guidance, (v) modeling, anal ys es, and demonstrations, and (vi) preparing inventories and tracking emissions.DRAFT

25 (B) The total amount of fees collected b y the permitting authority shall conform t o the following requirements: (i) The Administrator shall not approve a program as meeting the requirements of this paragraph unless the State demonstrates that, except as otherwise provided in subparagraphs (ii) through (v) of this subparagraph, the program will result in the collection, in the aggregate, from all sources subject to subparagraph (A), of an amount not less than $25 per ton of each regulated pollutant, or such other amount as the Administrator may determine adequatel y reflects the rea sonable costs of the permit program. (ii) As used in this subparagraph, the term "regulated pollutant" shall mean (I) a volatile organic compound; (II) each pollutant regulated under section 111 or 112; and (III) each pollutant for which a national prim ary ambient air quality standard has been promulgated (except that carbon monoxide shall be excluded from this reference). (iii) In determining the amount under clause (i), the permitting authority is not required to include an y amount of regulated pollutant emitted by an y source in excess of 4,000 tons per ye ar of that regulated pollutant. (iv) The requirements of clause (i) shall not apply if the permitting authority demonstrates that collecting an amount less than the amount specified under clause (i ) will meet the requirements of subparagraph (A). (v) The fee calculated under clause (i) shall be increased (consistent with the need to cover the reasonable costs authorized by subparagraph (A)) in each y ear beginning after the year of the enactment of the Clean Air Act Amendments of 1990 b y the percentage, if an y, b y which the Consumer Price Index for the most recent calendar year ending before the beginning of such year exceeds the Consumer Price Index for the calendar year 1989. For purposes of this clause

- (I) the Consumer Price Index for any calendar y ear is the average of the Consumer Price Index for all

- urban consumers published by the Department of Labor, as of the close of the 12

- month period ending on August 31 of each calendar ye ar, and (II) the revision of the Consumer Price Index which is most consistent with the Consumer Price Index for calendar ye ar 1989 shall be used. (C)(i) If the Administrator determines, under subsection (d), that the fee provisions of the operating permit program do not meet the requirements of this paragraph, or if the Administrator makes a determination, under subsection (i), that the permitting authority is not adequatel y administering or enforcing an approved fee program, the Administrator may , in addi tion to taking any other action authorized under this title, collect reasonable fees from the sources identified under subparagraph (A). Such fees shall be designed solely to cover the Administrator's costs of administering the provisions of the permit pr ogram promulgated b y the Administrator. (ii) Any source that fails to pay

fees lawfully

imposed by

the Administrator under this subparagraph shall pay

a penalty of 50 percent of the fee amount, plus interest on the fee amount computed in accordance with s ection 6621(a)(2) of the Internal Revenue Code of 1986 (relating to computation of interest on underpay ment of Federal taxes).DRAFT

26 (iii) Any fees, penalties, and interest collected under this subparagraph shall be deposited in a special fund in the United St ates Treasury for licensing and other services, which thereafter shall be available for appropriation, to remain available until expended, subject to appropriation, to carry out the Agency 's activities for which the fees were collected. Any fee required to be collected b y a State, local, or interstate agency

under this subsection shall be utilized solely to cover all reasonable (direct and indirect) costs required to support the permit program as set forth in subparagraph (A). (4) Requirements for adequat e personnel and funding to administer the program. (5) A requirement that the permitting authority have adequate authority

to: (A) issue permits and assure compliance by all sources required to have a permit under this title with each applicable stand ard, regulation or requirement under this Act; (B) issue permits for a fixed term, not to exceed 5 years; (C) assure that upon issuance or renewal permits incorporate emission limitations and other requirements in an applicable implementation plan; (D) terminate, modify , or revoke and reissue permits for cause; (E) enforce permits, permit fee requirements, and the requirement to obtain a permit, including authority to recover civil penalties in a maximum amount of not less than $10,000 per day fo r each violation, and provide appropriate criminal penalties; and (F) assure that no permit will be issued if the Administrator objects to its issuance in a timel y manner under this title. (6) Adequate, streamlined, and reasonable procedures for expedit iously determining when applications are complete, for processing such applications, for public notice, including offering an opportunity

for public comment and a hearing, and for expeditious review of permit actions, including applications, renewals, or revisions, and including an opportunity for judicial review in State court of the final permit action b y the applicant, an y person who participated in the public comment process, and any other person who could obtain judicial review of that action under applicable law. (7) To ensure against unreasonable delay by the permitting authorit y, adequate authorit y and procedures to provide that a failure of such permitting authorit y to act on a permit application or permit renewal application (in accordance w ith the time periods specified in section 503 or, as appropriate, title IV ) shall be treated as a final permit action solely for purposes of obtaining judicial review in State court of an action brought by an y person referred to in paragraph (6) to requir e that action be taken by the permitting authorit y on such application without additional delay

. (8) Authorit y, and reasonable procedures consistent with the need for expeditious action by the permitting authorit y on permit applications and related matte rs, to make available to the public any permit application, compliance plan, permit, and monitoring or compliance report under section 503(e), subject to the provisions of section 114(c) of this Act. (9) A requirement that the permitting authority , in th e case of permits with a term of 3 or more ye ars for major sources, shall require revisions to the permit to incorporate applicable standards and regulations promulgated under this Act after the issuance of such permit. Such revisions shall occur as expedi tiously

as practicable and consistent with the procedures established under paragraph (6) but not later than 18 months after the promulgation of such standards and regulations. No such revision shall beDRAFT

27 required if the effective date of the standards or re gulations is a date after the expiration of the permit term. Such permit revision shall be treated as a permit renewal if it complies with the requirements of this title regarding renewals. (10) Provisions to allow changes within a permitted facilit y (or one operating pursuant to section 503(d)) without requiring a permit revision, if the changes are not modifications under an y provision of title Iand the changes do not exceed the emissions allowable under the permit (whether expressed therein as a rate of emissions or in terms of total emissions: Provided, That the facility provides the Administrator and the permitting authority with written notification in advance of the proposed changes which shall be a minimum of 7 day s, unless the permitting authority provides in its regulations a different time frame for emergencies. (c) Single Permit.

- A single permit may be issued for a facility

with multiple sources. (d) Submission and Approval.

- (1) Not later than 3 y ears after the date of the enactment of the Clean Air Act Amendments of 1990, the Governor of each State shall develop and submit to the Administrator a permit program under State or local law or under an interstate compact meeting the requirements of this title. In addition, the Governor s hall submit a legal opinion from the attorney general (or the attorney

for those State air pollution control agencies that have independent legal counsel), or from the chief legal officer of an interstate agency , that the laws of the State, localit y, or th e interstate compact provide adequate authority to carry out the program. Not later than 1 year after receiving a program, and after notice and opportunity for public comment, the Administrator shall approve or disapprove such program, in whole or in part. The Administrator may approve a program to the extent that the program meets the requirements of this Act, including the regulations issued under subsection (b). If the program is disapproved, in whole or in part, the Administrator shall notify the Govern or of any

revisions or modifications necessary to obtain approval. The Governor shall revise and resubmit the program for review under this section within 180 day s after receiving notification. (2)(A) If the Governor does not submit a program as required under paragraph (1) or if the Administrator disapproves a program submitted by the Governor under paragraph (1), in whole or in part, the Administrator may , prior to the expiration of the 18

- month period referred to in subparagraph (B), in the Administrat or's discretion, apply any of the sanctions specified in section 179(b). (B) If the Governor does not submit a program as required under paragraph (1), or if the Administrator disapproves an y such program submitted by the Governor under paragraph (1), i n whole or in part, 18 months after the date required for such submittal or the date of such disapproval, as the case may be, the Administrator shall appl y sanctions under section 179(b) in the same manner and subject to the same deadlines and other condi tions as are applicable in the case of a determination, disapproval, or finding under section 179(a). (C) The sanctions under section 179(b)(2) shall not apply pursuant to this paragraph in any area unless the failure to submit or the disapproval refer red to in subparagraph (A) or (B) relates to an air pollutant for which such area has been designated a nonattainment area (as defined in part D of title I). (3) If a program meeting the requirements of this title has not been approved in whole for any State, the Administrator shall, 2 y ears after the date required for submission of such a program under paragraph (1), promulgate, administer, and enforce a program under this title for that State.DRAFT

28 (e) Suspension.

- The Administrator shall suspend the issu ance of permits promptly upon publication of notice of approval of a permit program under this section, but may , in such notice, retain jurisdiction over permits that have been federall y i ssued, but for which the administrative or judicial review process is not complete. The Administrator shall continue to administer and enforce federally issued permits under this title until they are replaced by

a permit issued by

a permitting program. Nothing in this subsection should be construed to limit the Administrator's ability to enforce permits issued by a State. (f) Prohibition.

- No partial permit program shall be approved unless, at a minimum, it applies, and ensures compliance with, this title and each of the following: (1) All requirements established under title IV applicable to "affected sources." (2) All requirements established under section 112 applicable to "major sources", "area sources," and "new sources." (3) All requirements of title I(other than section 112) applicable to sources require d to have a permit under this title. Approval of a partial program shall not relieve the State of its obligation to submit a complete program, nor from the application of an y sanctions under this Act for failure to submit an approvable permit program. (g) Interim Approval.

- If a program (including a partial permit program) submitted under this title substantially

meets the requirements of this title, but is not fully approvable, the Administrator may by rule grant the program interim approval. In the not ice of final rulemaking, the Administrator shall specify the changes that must be made before the program can receive full approval. An interim approval under this subsection shall expire on a date set by the Administrator not later than 2 years after such approval, and may

not be renewed. For the period of any such interim approval, the provisions of subsection (d)(2), and the obligation of the Administrator to promulgate a program under this title for the State pursuant to subsection (d)(3), shall be sus pended. Such provisions and such obligation of the Administrator shall apply after the expiration of such interim approval. (h) Effective Date.

- The effective date of a permit program, or partial or interim program, approved under this title, shall be the effective date of approval b y the Administrator. The effective date of a permit program, or partial permit program, promulgated b y the Administrator shall be the date of promulgation. (i) Administration and Enforcement.

- (1) Whenever the Administrat or makes a determination that a permitting authority is not adequatel y administering and enforcing a program, or portion thereof, in accordance with the requirements of this title, the Administrator shall provide notice to the State and may , prior to the expiration of the 18

- month period referred to in paragraph (2), in the Administrator's discretion, appl y an y of the sanctions specified in section 179(b). (2) Whenever the Administrator makes a determination that a permitting authority is not adequatel y administering and enforcing a program, or portion thereof, in accordance with the requirements of this title, 18 months after the date of the notice under paragraph (1), the Administrator shall apply

the sanctions under section 179(b) in the same manner and subject to the same deadlines and other conditions as are applicable in the case of a determination, disapproval, or finding under section 179(a).DRAFT

29 (3) The sanctions under section 179(b)(2) shall not apply pursuant to this subsection in any area un less the failure to adequately enforce and administer the program relates to an air pollutant for which such area has been designated a nonattainment area. (4) Whenever the Administrator has made a finding under paragraph (1) with respect to any State, unless the State has corrected such deficiency within 18 months after the date of such finding, the Administrator shall, 2 y ears after the date of such finding, promulgate, administer, and enforce a program under this title for that State. Nothing in this p aragraph shall be construed to affect the validity of a program which has been approved under this title or the authority of any permitting authorit y acting under such program until such time as such program is promulgated b y the Administrator under this p aragraph. [42 U.S.C. 7661a]

**SEC. 503. PERMIT APPLICATIONS.** (a) APPLICABLE DATE.

- An y source specified in section 502(a) shall become subject to a permit program, and required to have a permit, on the later of the following dates

- (1) the effective date of a permit program or partial or interim permit program applicable to the source; or (2) the date such source becomes subject to section 502(a). (b) COMPLIANCE PLAN.

- (1) The regulations required by section 502(b) shall include a requirement that the a

pplicant submit with the permit application a compliance plan describing how the source will comply with all applicable requirements under this Act. The compliance plan shall include a schedule of compliance, and a schedule under which the permittee will
s ubmit progress reports to the permitting authority no less frequentl y than every 6 months. (2) The regulations shall further require the permittee to periodicall y (but no less frequentl y than annually) certify

that the facility

is in compliance with any a pplicable requirements of the permit, and to promptly report an y deviations from permit requirements to the permitting authority. (c) DEADLINE.

- An y person required to have a permit shall, not later than 12 months after the date on which the source becomes subject to a permit program approved or promulgated under this title, or such earlier date as the permitting authorit y may establish, submit to the permitting authorit y a compliance plan and an application for a permit signed b y a responsible official, wh o shall certify the accuracy of the information submitted. The permitting authorit y shall approve or disapprove a completed application (consistent with the procedures established under this title for consideration of such applications), and shall issue or den y the permit, within 18 months after the date of receipt thereof, except that the permitting authorit y shall establish a phased schedule for acting on permit applications submitted within the first full year after the effective date of a permit program (or a partial or interim program). An y such schedule shall assure that at least one

- third of such permits will be acted on by such authority annually over a period of not to exceed 3 y ears after such effective date. Such authorit y shall establish reasonab le procedures to prioritize such approval or disapproval actions in the case of applications for construction or modification under the applicable requirements of this Act.DRAFT

30 (d) TIMELY AND COMPL ETE APPLICATIONS.

- Except for sources required to have a permit before construction or modification under the applicable requirements of this Act, if an applicant has submitted a timely

and complete application for a permit required b y this title (including renewals), but final action has not been taken on such applic ation, the source's failure to have a permit shall not be a violation of this Act, unless the delay in final action was due to the failure of the applicant timel y to submit information required or requested to process the application. No source required to have a permit under this title shall be in violation of section 502(a) before the date on which the source is required to submit an application under subsection (c). (e) COPIES; AVAILABILITY.

- A copy of each permit application, compliance plan (including the schedule of compliance), emissions or compliance monitoring report, certification, and each permit issued under this title, shall be available to the public. If an applicant or permittee is required to submit information entitled to protection from dis closure under section 114(c) of this Act, the applicant or permittee may

submit such information separatel y. The requirements of section 114(c) shall appl y to such information. The contents of a permit shall not be entitled to protection under section 114( c).
**SEC. 504. PERMIT REQUIREMENTS AND CONDITIONS.** (a) CONDITIONS.

- Each permit issued under this title shall include enforceable emission limitations and standards, a schedule of compliance, a requirement that the permittee submit to the permitting autho rit y, no less often than every 6 months, the results of an y required monitoring, and such other conditions as are necessary to assure compliance with applicable requirements of this Act, including the requirements of the applicable implementation plan. (b ) MONITORING AND ANALYSIS.

- The Administrator may by rule prescribe procedures and methods for determining compliance and for monitoring and anal ys is of pollutants regulated under this Act, but continuous emissions monitoring need not be required if alternative methods are available that provide sufficientl y reliable and timely information for determining compliance. Nothing in this subsection shall be construed to affect an y continuous emissions monitoring requirement of title IV, or where required elsewher e in this Act. (c) INSPECTION, ENTRY, MONITORING, CERTIFICATION, AND REPORTI NG.

- Each permit issued under this title shall set forth inspection, entry , monitoring, compliance certification, and reporting requirements to assure compliance with the permit te rms and conditions. Such monitoring and reporting requirements shall conform to an y applicable regulation under subsection (b). An y report required to be submitted by a permit issued to a corporation under this title shall be signed b y a responsible corpor ate official, who shall certify its accuracy

. §70.5(c) Standard applications form and required information . The State program under this part shall provide for a standard application form or forms. Information as described below for each emissions unit
at a part 70 source shall be included in the application. The Administrator may approve as part of a State program a list of insignificant activities and emissions levels which need not be included in permit applications. However, for insignificant activiti es which are exempted because of size or productionDRAFT

31 rate, a list of such insignificant activities must be included in the application. An application may not omit information needed to determine the applicability of, or to impose, any applicable requirement, or to evaluate the fee amount required under the schedule approved pursuant to §70.9 of this part. The permitting authorit y ma y use discretion in developing application forms that best meet program needs and administrative efficiency . The forms and atta chments chosen, however, shall include the elements specified below: (1) Identifying information, including compan y name and address (or plant name and address if different from the company name), owner's name and agent, and telephone number and names of plant site manager/contact. (2) A description of the source's processes and products (by Standard Industrial Classification Code) including an y associated alternative scenario identified by the source. (3) The following emission related information: (i) All emissions of pollutants for which the source is major, and all emissions of regulated air pollutants. A permit application shall describe all emissions of regulated air pollutants emitted from any emissions unit, except where such units are exempt ed under this paragraph (c) of this section. The permitting authorit y shall require additional information related to the emissions of air pollutants sufficient to verify

which requirements are applicable to the source, and other information necessary to c ollect an y permit fees owed under the fee schedule approved pursuant to §70.9(b) of this part. (ii) I dentification and description of all points of emissions described in paragraph (c)(3)(i) of this section in sufficient detail to establish the basis for fees and applicability of requirements of the Act. (iii) Emissions rate in tpy and in such terms as are necessary to establish compliance consistent with the applicable standard reference test method. (iv) The following information to the extent it is needed to determine to regulate emissions: Fuels, fuel use, raw materials, production rates, and operating schedules. (v) Identification and description of air pollution control equipment and compliance monitoring devices or activities. (vi) L imitatio ns on source operation affecting emissions or any work practice standards, where applicable, for all regulated pollutants at the part 70 source. (vii) Other information required b y an y applicable requirement (including information related to stack height limitations developed pursuant to section 123 of the Act.) (viii) Calculations on which the information on paragraphs (c)(3)(i) through (c)(3)(vii) of this section is based. (4) The following air pollution control requirements: (i) Citation and des cription of all applicable requirements, and (ii) Description of or reference to an y applicable test method for determining compliance with each applicable requirement. (5) Other specific information that may be necessary

to implement and enforce other applicable requirements of the Act or of this part or to determine the applicability of such requirements. (6) An explanation of any proposed exemptions from otherwise applicable requirements.DRAFT

32 (7) Additional information as determined to be necessary b y the permitting authorit y to define alternative operating scenarios identified b y the source pursuant to § 70.6(a)(9) of this part or to define permit terms and conditions implementing § 70.4(b)(12) or § 70.6(a)(10) of this part. (8) A compliance plan f

or all part 70 sources that contains all the following: (i) A description of the compliance status of the source with respect to all applicable requirements. (ii) A description as follows: (A) For applicable requirements with which the source is in c ompliance, a statement that the source will continue to comply with such requirements. (B) For applicable requirements that will become effective during the permit term, a statement that the source will meet such requirements on a timely basis. (C) For requirements for which the source is not in compliance at the time or permit issuance, a narrative description of how the source will achieve compliance with such requirements. (iii) A compliance schedule as follows: (A) For applicable requirements wi th which the source is in compliance, a statement that the source will continue to comply with such requirements. (B) For applicable requirements that will become effective during the permit term, a statement that the source will meet such requirements o n a timely basis. A statement that the source will meet in a timely manner applicable requirements that become effective during the permit term shall satisfy this provision, unless a more detailed schedule is expressly required b y the applicable requirement. (C) A schedule of compliance for sources that are not in compliance with all applicable requirements at the time of permit issuance. Such a schedule shall include a schedule of remedial measures, including an enforceable sequence of actions with miles tones, leading to compliance with any applicable requirements for which the source will be in noncompliance at the time of permit issuance. This compliance schedule shall resemble and be at least as stringent as that contained in an y judicial consent decre e or administrative order to which the source is subject. An y s uch schedule of compliance shall be supplemental to and shall not sanction noncompliance with, the applicable requirements on which it is based. (iv) A schedule for submission of certified progress reports no less frequently than every

6 months for sources required to have a schedule of compliance to remedy a violation. (v) The compliance plan content requirements specified in this paragraph shall apply and be included in the acid rain porti on of a compliance plan for an affected source, except as specificall y superseded b y regulations promulgated under title IV of the Act with regard to the schedule and method(s) the source will use to achieve compliance with the acid rain emissions limitati ons. (9) Requirements for compliance certification, including the following: (i) A certification of compliance with all applicable requirements by a responsible official consistent with paragraph (d) of this section and section 114(a)(3) of the Act; ( ii) A statement of methods used for determining compliance, including a description of monitoring, record keeping, and reporting requirements and test methods;DRAFT

33 (iii) A schedule for submission of compliance certifications during the permit term, to be
submitted no less frequently than annually , or more frequentl y if specified by the underl yi ng applicable requirement or b y the permitting authority ; and (iv) A statement indicating the source's compliance status with an y applicable enhanced monitoring and compliance certification requirements of the Act. (10) The use of nationally

- standardized forms for acid rain portions of permit applications and compliance plans, as required by regulations promulgated under title IV of the Act. (d) An y application fo rm, report, or compliance certification submitted pursuant to these regulations shall contain certification by a responsible official of truth, accuracy , and completeness. This certification and an y other certification required under this part shall state that, based on information and belief formed after reasonable inquiry , the statements and information in the document are true, accurate, and complete.DRAFT

34 ATTACHMENT 2

ADJUSTMENTS TO BASELINE BURDEN TO ACCOUNT FOR GHG TAILOR ING RULE AND FAP RUL E BURDENDRAFT

35 **Adjustments to Baseline Burden to Account for GHG Tailoring Rule Burden GHG Activity**  **Assumptions Adjustment**  Source: Application

– Add GHG to non

- GHG source Assume this only applies to PSD

“anyway” sources under Tailoring Rule (TR). Assume all new sources are anyway sources. TR ICR assumes incremental burden above baseline burden of 10%. **Increase hours/activity burden assumption for each initial application**  **and initial permit issuance activity by 10%**  (e.g., “public hearing” changes from 10 hours to 11 hours). This effects the following activities:
 Draft Permit Interaction
 Periodic monitoring development
 Public hearing Permitting Authority: Application

– Add GHG to non

- GHG source Assume this only applies to PSD

“anyway” sources under Tailoring Rule (TR). Assume all new sources are anyway sources. TR ICR assumes incremental burden above baseline of 10%. **Increase hours/activities burden assumption for each initial application**  **and initial permit issu ance activity by**  **10%** (e.g., “public hearing” changes from 100 hours to 110 hours).This effects the following activities:
 Application review,
 Drafting permit,
 Public & affctd state notice, Public hearing,
 Finalize draft w/ public com & Issuance, notific ., web, Source: Modification

– Due to GHG Tailoring Rule Assumes about 6% of

permits every year (18% every 3 years) will need additional mods related to GHGs. Assume all are significant mods. The baseline assumption is that 10 % of existing permits eac h year undergo a significant mod. Increase the number of significant mods each year by an additional 6%. **Result is that 16% of existing permits at the**  **beginning of each ICR year undergo a significant mod** 

. This affects “Revisions, significant

- 3 yr.” Permitting Authority: Modification

– Due to GHG Tailoring Rule Assumes about 6% of

permits every year (18% every 3 years) will need additional mods related to GHGs. Assume all are significant mods. The baseline assumption is that 10 % of existing permi ts each year undergo a significant mod. Increase the number of significant mods each year by an additional 6%. **Result is that 16% of existing permits at the**  **beginning of each ICR year undergo a significant mod** 

. This a ffects “Revisions, significant

- 3 yr .” Source: Modification

– Add GHG to non

- GHG permit. The burden of all significant and minor

permit mods increases due to considering GHGs. The TR ICR assumes the burden of all mods increases by 4 hours

. **Increase the burden/hour assumption for significant**  **and minor permit mods by 4 hour**  s (e.g., “permit revisions, minor” increases from 40 hours to 44 hours). Permitting Authority: Modification

– Add GHG to non

- GHG permit. The burden of all significant and minor

permit mods increases due to considering GHGs. The TR ICR assumes the burden of all mods increases by 4 hours

. **Increase the burden/hour assumption for significant and minor permit mods by 4**  **hours** (e.g., “permit revisions, minor” increases from 30 hours to 34 hours). Source: Add GHG at Renewal The TR ICR assumes 80% of renewals

(for combustion sources) will experience a 10% incremental burden. **Increase the burden/hour assumption for “permit renewal applications” and**  **“Other permit renewal activities” by 10**  **%** (e.g., “Permit renewal appli c.” changes from 200 hours to 220 hours).DRAFT

36 **Adjustments to Baseline Burden to Account for GHG Tailoring Rule Burden GHG Activity**  **Assumptions Adjustment**  Permitting Authority Add GHG at Renewal The TR ICR assumes 80% of renewals

(for combustion sources) will experience a 10% incremental burden. **Increase the burden/hour assumption for “Renewing permits” by 8%**  (e.g., “Renewing Permits” changes from 90 hours to 97 hours). EPA Oversight of Mods due to GHG:
 Review Mod Due to GHG
 Consult on Mod Due to GHG EPA Oversight of such mods occurs for

permits delegated to the Navaho Nation. EPA reviews all such mods and consults on 25% of the m. EPA assumes 6% of existing permits per year (18% over 3 years) on the Navaho Reservation will be revised for this reason as significant mods. Assume EPA oversight =
 Baseline EPA oversight
 + review all mods due to GHG
 + consult in 1/4 of mods due to GHG. Annually: = (# of Nav. permits * 2 hr/yr * 3 yrs) + (6% of Nav. permits * 8 hr/yr * 3 yrs) + 1⁄4 (6% of Nav. permits * 8 hr/yr * 3 yrs) Every 3 years: = # of Nav. permits * 6 hrs + 18% of Nav. permits * 8 hrs +4.5% of Nav. Permits * 8 hrs Simplify (3 yr): = # of Nav. permits * 6 hrs +22.5% of Nav permits * 8 hrsDRAFT

37 **Adjustments to Baseline Burden to Account for FAP Rule Burden** Note that the part 71 ICR assumes the ty pical single source permit experiences 1 minor permit modification every

2 y ears and 1 significant modification every 10 y ears, so using the assumptions of the FAP ICR for avoided burden would lead to a reduction of almost all permit modification burden for all permitted sources in the part 71 ICR, which is not consistent with agency e xperience. This would occur because the FAP ICR focused on a highly complex subset of sources, which are not representative of the ty pical part 71 sources; thus, the part 71 ICR does not have the data richness to accurately incorporate these burden reducti ons and would tend to significantl y overestimate the burden reductions. Consequently , for the purposes of this anal ys is, we will assume that sources with either Tier 1 or Tier 2 mechanisms in their part 71 permits will have no permit modification burden during the IC R period, which will result in more modest burden reductions, which we believe are more representative of the overall effect of the FAP rule on the permitting program.

**Adjustments to Baseline Burden to Account for FAP Rule Burden GHG Activity**  **Assumptions Adjustment**  Source and Permitting Authority: Tier 1

– 5 MPM avoided per year FAP ICR assumes 5% of sources will get a Tier 1 permit, which will result in 5 MPM avoided per year. **Reduce the number of MPMs that occur by 10%.**  We assume 10% rather than 5% because Tier 2 FAPs reduce MPM burden for 10% of sources, as shown below, and because we assume each source with a FAP will have no MPM burden each year. Sources and Permitting Authority: Tier 1

– 1 SPM avoided per year FAP ICR assumes 5% of sources will get a Tier 1 permit, which will result in 1 SPM avoided every 5 years. **Reduce the number of SPMs that occur each year by 5%** 

Source: Tier 2

– New Sources FAP ICR assumes 10% of new permits will incorporate Tier 2 provisions, resulting in 60 ho urs more burden to issue the permit. 10% of new permits will have added burden of 60 hours to put FAP into their application. **Thus, assume each new application have 6 hours of**  **added burden for sources**

. **Revise “Draft Permit Interaction**  ” because this activity applies to all new permits (new sources plus backlogged permit applications). Permitting authority: Tier 2

– New Sources FAP ICR assumes 10% of new permits will incorporate Tier 2 provisions, resulting in 45 hours more burden to issue the permit. 10% of new permits will have added burden of 45 hours for PAs for FAP review. **Thus, assume each new permit will have 4.5 hours of added**  **burden for PAs. Revise “Draft Permit Preparation”**  because this activity applies to all new permits (new sources plus bac klogged permit applications). Sources and Permitting authority: Tier 2

– 1 MPM avoided per year FAP ICR assumes 10% of sources will get a Tier 2 permit, which will result in 1 MPM avoided per year. **Reduce the number of MPMs that occur by 10%.**