United States Environmental Protection Agency


## Office of Air and Radiation Office of Air Quality Planning and Standards


# DRAFT SUPPORTING **STATEMENT FOR**  **THE PART**  **71 FEDERAL**  **OPERATING PERMIT**  **PROGRAM**

**prepared by** Jeff Herring, Environmental Scientist Air Quality Policy Division Operating Permits Group

**EPA # 1713.06** 

# EPA

Dece mb er 20 11

**EPA # 1713. 1**  **0**E

- 1 Title V of the Clean Air Act requires each State to develop and submit to EPA for approval an operating permit program that meets the requirements of title V. Where a State fails to submit an approvable program, title V requires EPA to impl ement a program instead. [See § 502(d).] Moreover , EPA must implement a program in any area where a State, local or tribal program is not effective, including in Indian c ountry , certain areas offshore where the Outer Continental Shelf Lands Act (OCS) and Deepwater Port Act (DWPA) applies , and in any location with an approved part 70 program, where EPA has made a finding that the program is deficient and EPA takes over permitting responsibilities . Also, EPA issues individual title V permits in situations where there is an approved part 70 program, but EPA has objected to the issuance of a particular permit, and the State has failed to resolve the objec tion. For any existing rule, § 3507(g) of the Paperwork Reduction Act limits how long a Director may

approve a collection of information to 3 years. On September 12, 2007 , OMB approved the ICR renewal for part 71 (OMB number 2060

- 0336, EPA trac king # 1713.0 6 ) for 3 6 months (it was scheduled to expire on September 30, 2010). On April 22, 2009, OMB approved a revision to the previousl y approved collection related to the final rule for Flexible Air Permits (EPA tracking # 1713.09) and as part of this approval OMB extended the expiration date of the I CR to April 30, 2012

. This ICR is a renewal of the September 200 7 IC R.
Table E

- 1 displays the expected annual burden and the expected change in annual burden for sources, permitting authorities, and the Federal government for implementation of the part 71 Operating Permits Program under Title V of the Clean Air Act between May 2012 and April 2015. This ICR represents an overall increase in expected burden of over 3 8 percent for respondents (sources) and 32 percent for permitting authorities compared to that reported in the 2007 ICR. **Executive Summary**E

- 2 **TA BLE E**  **- 1**  **BURDEN CHA NGE FROM 200**  **7 ICR TO CURRENT ICR (in hours)** 

**Av erage**  **An nual Burden**  **in 200 7**  **ICR Renewal Av**  **erage An**  **nual Burden in Current ICR Renewal**  **Difference Source**  **s 27,218**  **37,413 10,195**  **PA (Tribe)**  **N/A 1,318**  **N/A Federal (PA** **) 12,372**  **15,066 4,011**  **Federal (Oversight)**  **N/A 24**  **N/A TOTA**  **L 39,591**  **53,820 14,229** 
In 2007 IC R renewal (EPA tracking # 1703.06) , the Agency estimated the annualized burden to part 71 sources at 27 thousand hours. The current ICR estimates the annualized burden to sources at about 37 thousand hours , primarily due to an increase in the number of sources subject to permitting. The 2007 renewal included 123 sources, while this update expects 174 sources, including Indian c ountry sources , OCS sources 1 , DWP A sources, 2 sources subject to permitting due to the GHG Tailoring rule, and any part 70 sources with unresolved EPA objections. Thus, there is an increase in respondent (source) burden in this renew al compared to the 2007 renewal due to changes in our estimate of the number of permitted sources . This increase is due to increased economic activity , which the existing regulations are designed to accommodate, rather than due to any changes in informatio n collection requirements. This increase d estimate better reflect s the actual numbers of sources and activities under part 71 d uring the period. There were no changes necessary to the part 71 forms to accommodate the two previous rule changes and the part 71 forms are not being changed as part of this renewal.

1 C ertain oil and natural gas exploration and development sources, such as dril l ships and drilling platforms, and alternative energy projects (e.g., wind and wave energy projects) located offshore under the Outer Continental Shelf Lands Act, 43 U.S.C. § 1331 et seq.; 43 U.S.C § 1501 et seq. 2 C ertain oil and liquefied natural gas (LNG) terminals or ports located offshore under the Deepwater Port Act, 33 U.S.C. § 1501 et seq. **CONCLUSION: T**  **h is ICR represents**  **an INCREA SE IN BURDEN FOR** 

**SOURCES, relative to the prior ICR.** E

- 3 Although Tribes had authority to seek delegation of part 71 permitting at the time of the last ICR renewal, none had done so, so that renewal identified EPA as the only permitting authority . T his I CR identifies EPA and one delegate a gency , the Navaho Nation, as permitting authorities because, s ince the last ICR renewal, EPA entered into a delegation agreement with the Navaho Nation for them to assume responsibil ity for 14 existing part 71 sources located within the exterior boundaries of their delegated program area in Indian country

-- EPA will continue to act as the permitting authority for the remaining 160 part 71 sources included in this renewal

. Also related to the delegation agreement with the Navaho Nation , EPA will perform some program oversight activities (similar to the oversight EPA performs for states with approved part 70 programs), which will be tracked separatel y in this ICR. It is possible that additional Indian tribes may

seek delegation for part 71 in the future but it is unlikely that any new delegation agreements would be approved and effective before this new renewal ICR is scheduled to expire.
In the 2007 renewal , EPA estimated its annualized burden at 12 thousand hours, while this update predicts about 1 5 thousand hours annuall y , divided between EPA and the delegate agency . This increase in permitting authority burden is due to the same reasons as sources: an increase in the number of sources expected to be permitted, which is primarily due to an increase in the estimate of the number of offshore oil and gas exploration sources and alternate energy projects (under OCS rules) and offshore liquefied natural gas (LNG) terminals (under DWPA rules)

. This translates into an in crease in permitting authority burden of about 32 percent compared to the 2007 IC R renewal

.E

- 4 Since the 2007 renewal, EPA promulgated two new regulatory revisions that apply to both part 70 and part 71 : the Flexible A ir Permits Rule 3 and the GHG Tailoring rule 4 . OMB has previously approved ICR changes related to the se rules under EPA tracking numbers 1587.10, 1 703. 09 5 and EPA tracking # 1587.1 1 6 and these changes are updated as part of this anal ys is . The first rule resulted in a net reduction in burden for a large number of existing sources, while the second resulted in an increase in burden for a modest number of newly subject sources and small increases in burden for a large number of existing sources. In this analy sis these two rule changes have resulted in nearl y offsetting decreases and increases in burden compared to the baseline anal ys is (the term baseline anal ys is used here re fer s to the anal ys is performed for the 2007 ICR renewal , which did not account for the Flexible Air Permits and GHG Tailoring r ules ). For this ICR renewal, we first calculate burden by updating the anal ys is performed for the 2007 ICR renewal , then we account for the recentl y OMB

- approved changes related to the Flexible Permits and Tailoring rules just prior to calculating the bottom line burden and costs for this renewal ICR. In the way , it is easier for the reader to see the relative changes in burden from the 2007 baseline and changes attributable to the two recent rule revisions

.

3 Operating Permit Programs, Flexible Air Permits Rule, Final Rule (74 FR 51418, October 6, 2009). 4 Prevention of Significant Deterioration and Title V Greenhou se Gas Tailoring Rule, Final Rule (75 FR 31514, June 3, 2010). 5 Information Collection Request for Changes to the Part 70 Operating Permit Regulations, the Part 71 Operating Permits Regulations, and the Parts 51 and 52 Prevention of Significant Deterioration Regulation and Non

- Attainment New Sources Revie w Regulations for Flexible Air Permits, November 2008 (EPA tracking numbers 1587.10 and 1703.09). 6 Information Collection Request for State Operating Permit Regulations (40 CFR part 70) Change Justification, EPA tracking # 1587.11.**Table of Contents**

**Executive Summary**

... ....................................... E

- 1
**1. Identification of the Information Collection** 

............... 1
**2. Need and Use of the Collection** 

............................... 5
**3. Non**  **- Duplication, Consultation, and Other** 

**Collection Criteria**

.............................................. 7
**4. The Respondents and the Information Requested** 

...... 1 1
**5. The Information Collected**  **- Collection Methodology** 

**and Information Management** 

....... ........................ 1 5
**6. Estimating the Burden and Cost of the Collection** 

...... 1 7

**Attachment 1 The Statutory Requirements for Respondent**  **Information**

................................ ................................ ...... 31
**Attachment 2 February**  **9, 2007**  **Federal Register Notice**

...... .......... 4 3**Draft Supporting Statement For**  **the Part 71**  **Federal Operating Permit**  **Program Page**  1 **December 20**  **11** This analysis is titled: “ Draft Supporting Statement for the Part 71 Federal Operating Permit Program ” It fulfills the Agency's requirements under the Paperwork Reduction Act (PRA) to determine, report, and periodically update the regulatory

burden associated with the Federal Operating Permits Program, codified in title 40 of the Code of Federal Regulations (40 CFR) part 71. It has been assigned EPA tracking number ICR # 1713. 10 and OMB tracking number 2060

- 0336. The part 71 program is a Federal operating permit program implemented by EPA (or a delegate agency) for sources located in areas where there is no State, local or Tribal program, such as in Indian c ountry , offshore area s where the OCS and D WPA regulations appl y , where there is a deficient State or local (part 70) permit program , and where 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 imposes on State or local permitting authorities (agencies), the duty to develop, administer and enforce operating permit programs which comply with title V and requires EPA to administer and enforce a permit program when State, local, or Tribal agenc i es do not establish such a program, or where they establish such a program but they fail to perform their duties consistent with title V. Section 502(b) of the Act requires EPA to promulgate regulations setting forth provisions under which State, local, or tribal agencies will develop operating permit programs and submit them to EPA for approval. Pursuant to this section, EPA promulgated 40 CFR part 70 on July

21, 1992 (57 FR 32250) which specifies the minimum elements of State operating permit programs. **1 Identification of the Information Collection**  **1.1 Title** 

**1.2 Description**  **EPA TRA** **CKING NUMBER:**  **1713. 10**  **OMB TRA CKING**  **NUMBER: 2060**  **- 0336** **Draft Supporting Statement For**  **the Part 71**  **Federal Operating Permit**  **Program Page**  2 **December 20**  **11** Pursuant to regulations promulgated b y EPA on February 19, 1999 (64 FR 8 , 247) EPA has authority to establish part 71 programs within Indian c ountry , and EPA began administering the program in Indian c ountry on March 22, 1999. Since many Indian tribes lack th e resources and capacity to develop operating permit programs under part 70, EPA will administer and enforce part 71 programs in the areas that comprise Indian c ountry in order to protect the air quality of areas under tribal jurisdiction.
The EPA intends to protect tribal air quality through the development of implementation plans, permits programs and direct assistance to tribes in developing comprehensive and effective air quality management programs. The EPA will consult with tribes to identify their p articular needs for air program development assistance and will provide ongoing assistance as necessary . There are approximately 130 sources in Indian country with permits at the beginning of the ICR period and we expect to permit an additional 6 such sources b y the end of this ICR period (April 2015) . This is an increase from the last ICR renewal, due to an increase in the estimate of the number of m ajor sources expected in Indian c ountry
. EPA is the permitting authority for sources located beyond 25 mil es (40 km) of the States’ seaward boundaries under the Outer Continental Shelf Lands Act (OCS sources), and the provisions of part 71 appl y to the permitting of those sources, as well. Using data from the Department of the Interior, Bureau of Ocean Energy Management, EPA estimates that there are currentl y 6 OCS sources with part 71 permits and as many as 9 additional OCS sources that may seek part 71 permits during the period of this ICR renewal. Our estimates of the number of OCS sources has changed through the ye ars but there has been increasing interest in developing offshore oil and gas and alternative energy resources and because of this better information has recently become available. Thus, this is a change from the last I CR update, where EPA assumed there might be up to 3 OCS sources. Deepwater P ort sources (DWPA sources) are fixed or floating structures that are located beyond State seaward boundaries, intended for the **1.2.1 Federal**  **Program Where There Is No**  **State, Local or Tribal Program** **Draft Supporting Statement For**  **the Part 71**  **Federal Operating Permit**  **Program Page**  3 **December 20**  **11** transportation, storage and handling of oil or natural gas (offshore LNG terminal s) and alternative energy projects . An offshore source may be either an OCS or a D WPA source

– it may not be both. Because DWPA sources are required to be treated as if they are located in an “ area of exclusive federal juris di ction within a State,” EPA mu st issue the title V permit for them [see § §1518(a)(1) of the D WPA]. Note that the previous ICR estimate d 1 DPA source and 3 seeking permits for a total of 4 such sources . Using updated data from the U.S. Coast Guard , Deepwater Ports Standards Division , E PA estimates we have issued 6 permits to such sources b y the beginning of the ICR period and that we will issue as many as 10 additional part 71 permits to such sources b y the end of this ICR renewal, bringing the total included in this analysis up to 16

. Section 502(i)(4) of the Act requires EPA to promulgate, administer, and enforce a title V program if EPA makes a determination that a State or local permitting authority is not adequatel y administ ering or enforcing their EPA

- app roved title V permitting program. This requirement is implemented through regulations promulgated b y EPA on July 1, 1996 (61 FR 34 , 202), specificall y by §§ 71.4(c) and 71.10(b)(1). The process described in these regulations can take up to 2 ye ars after a formal finding by EPA publ ished 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 any State or local per mitting program under part 70 will be replaced by a part 71 program administered b y EPA, and thus this ICR renewal does not include such scenarios . There are currentl y no NOD s in place at this time and due to the maturity

of the part 70 programs we believe it is unlikely EPA will take over all additional part 70 permit s in this manner during the period of this ICR

. Section 505(c) of the Clean Air Act provides that if a permitting authority fails to submit a permit to EPA that satisfies an EPA objection, then the EPA shall issue a permit that meets the req uirements of the Act. The **1.2.2 Federal**  **Program as a Backstop for**  **Deficient State Programs** 

**1.2.3 Federal**  **Program for Deficient State**  **Permits Draft Supporting Statement**  **For the**  **Part 71 Federal**  **Operating Permit Program**  **Page** 4 **December 20**  **11** part 71 rules implement this provision by providing that if the State or local permitting authority fails to satisfy an EPA objection to a part 70 permit then EPA shall issue a part 71 permit instead. There is currentl y 1 part 70 source that has been issued a part 71 permit for this reason and we do not expect any

additional part 71 sources for this reason d uring th e period of this IC R.**Draft Supporting Statement For**  **the Part 71**  **Federal Operating Permit**  **Program Page**  5 **December 20**  **11** When EPA is the permitting authority under title V, a source subject to the program must prepare an application and submit it within 1 year of becoming subject (section 503). EPA must then issue the permit within 18 months of receiving a complete application (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 (section 502(b)(5)). Sources must periodically (no less often than annually) certify

that they are in compliance with applicable requirements and promptly

report deviations from permit requirements to the permitting authority (section 503(b)(2)), and permits are required to set forth requirements for sources to conduct monitoring and reporting to assure compliance with p ermit terms and conditions (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 (section 503(e)) , and the public shall be giv en public notice of, and an opportunity

for comment on, permit actions (section 502(b)(6)). A copy of sections 502 through 504 of title V of the Act are in Attachment 1. For EPA to carry

out its required oversight function of reviewing proposed permits and permit revisions and assuring adequate implementation of the program, it must have available to it information on permit applications and issuance, permit revisions and renewals, and source data reports. The burden estimates included in this ICR provides emissions, source, and control information for the title V program.
The information included in this ICR is based upon the best data available to the Agency

at this time. However, inconsistencies in permitting authority reporting techniques, incomplet e data sets, and sampling limitations imposed upon the Agency by the Paperwork Reduction Act necessitated a certain amount of extrapolation and “best

- guess” estimations by

permitting authority

and Agency

experts. Consequently , the reader should not consider the conclusions to be an exact representation of **2 Need and Use of the Collection** 
**2.1 Need / A**  **uthority for the**  **Coll ection** 

**2.2 Practical Utility**  **/ Users of the**  **Data**

**2.3 Caveats and**  **Considerations Draft Supporting Statement**  **For the**  **Part 71 Federal**  **Operating Permit Program**  **Page** 6 **December 20**  **11** the level of burden or cost that will occur during the three ye ars of this ICR. Instead, this I CR should be considered a directionally correct assessment of the impact the Federal Operating Permit Program will have over the next three 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 data would be to determine an appropriate level of precision and truncate values accordingl y, 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 ICR, where source values are consistently

in the millions and Federal values in the tens of thousands. Consequently , to avoid the loss of information through rounding, this ICR reports all values at the single unit level and reminds the reader that there is no implied precision inherent in this style of reporting.**Draft Supporting Statement For**  **the Part 71**  **Federal Operating Permit**  **Program Page**  7 **December 20**  **11** The need for the data required by the part 70 and part 71 operating permits programs has been well documented in prior ICRs for both programs. While much of the information requested under this ICR existed prior to the creation of the operating permits 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 any questions of applicability at the time of permit issuance, (2) provide certainty to sources as to their obligations, and (3) provide the public access to a source’s obligations and compliance status. The Agency

cannot ignore its requirement for such previously existing informatio n 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 was previousl y collected (e.g., State permits under State plans), the program may replace those activities and avoid duplication of efforts.
For any existing rule, § 3507(g) of the PRA limits the length of time for which the Director may

approve a collection of information to 3 years. On September 12, 2007, OMB approved the ICR renewal for part 71 (OMB number 2060

- 0336, EPA tracking # 1713.06) for 36 months (it was scheduled to expire on September 30, 2010). On April 22, 2009, OMB approved a revision to the previousl y approved collection related to the final rule for Flexible Air Permits (EPA tracking # 1713.09) and as part of th at approval OMB extended the expiration date of the I CR to April 30, 2012. This I CR is a renewal of the September 2007 ICR. Except for information collection in notices of proposed rules or tho se exempted under the emergency processing provisions of 44 U.S.C. § 3507(j), the PRA requires EPA to solicit comment on each proposed information collection, including the renewal or modification of any existing I CR. On February 9 , 2007 (72 FR 6233) EPA p ublished a notice soliciting comment on an anal ys is of burden for the part 71 program for the 3

- ye ar period of this ICR (i.e., July 1, 2007 to June 3 0 , 2010). A cop y **3 Non**  **- Duplication, Consultation, and Other Collection Criteria**  **3.1 Non**  **- Duplication** 

**3.2 Public Notice**  **Requirements Draft Supporting Statement**  **For the**  **Part 71 Federal**  **Operating Permit Program**  **Page** 8 **December 20**  **11** of the February 2007 notice is included in this ICR as Attachment 2

. No public comments w ere received. The current ICR was prepared using data on the numbers of sources and permits that are updated on a semiannual b y basis by each of EPA’s ten Regional Offices. Itis these EPA Regional Offices where the part 71 permitting activities are carried out by EPA . The actual rates of permit issuance and permit renewal are reported b y the Regional Offices into an EPA database every six months. The 3 or 4 years of data in this database was reviewed for purposes of estimating existing sources and permit s and the backlog of initial and renewal permits

. The previous ICR discussed three consultative activities that we believed would provide additional details on the burden associated with this program. They

include a series of title V program evaluations, a request of the State and Territorial Air Pollution Program Administrators/Association of Local Air Pollution Control Officials (STAPPA/ALAPCO) permitting authorities (now called the National Association of Clean Air Agencies or NACAA) to provide their experiences on title V burden, and an external taskforce on title V.
The first activity is a series of comprehensive permit program evaluations for most of the nation’s 112 title V operating permitting programs. These evaluations, now completed, did not result in quantitative data that would cause us to make any major changes to the burden and cost assumptions we have used in the past for these ICRs, but they did result in information generall y consistent with past responses to surveys we have received fro m State and local agencies and that are consistent with the assumptions we make in this I CR. However, the information resulted in a minor change in assumptions we inco r

por ated into the 2007 ICR and we include these assumption in this ICR renewal

. The se cond activity was a request to review EPA’s burden hour assumptions by

members of NACAA’s subcommittee on permitting

. During a conference call with them, EPA received input on the draft ICR **3.3 Consultations** **Draft Supporting Statement For**  **the Part 71**  **Federal Operating Permit**  **Program Page**  9 **December 20**  **11** renewal for part 70 released for public comment. Consistent with NACAA’s input during that consultation, changes were made to burden estimates for certain activities performed b y EPA when it is the permitting authority under title V. Also, consistent with NACAA’s concerns, changes were made to the 2007 ICR and these chan ges are also carried forward in this ICR renewal. The third activity

falls under the purview of the Clean Air Act Advisory Committee. A taskforce (known as title V taskforce) was convened to hear testimony from industry , State government and environmentalists on the performance of title V programs and to identify elements of the programs that are working well or poorly

. The taskforce effort resulted in a list of recommendations to EPA on changes to policy and rulemakings to make the permit programs more e ffective; they did not result in any

quantitative data on burden and cost of permitting, thus, this effort did not result in any data useful for purposes of this I CR. (See http://www.ep a.gov/oar/oaqps/permits/taskforce.html) In general, collection of the information included in this I CR occurs once per activity (e.g., permit application or permit issuance). Periodic activities include a semi

- annual compliance monitoring data report and an annual compliance certification from each source required by section 503(b)(1) and (2), respectivel y, of the Act. EPA has no leeway to require less frequent reporting. The CAA requires retention of all monitoring data and support information and all permit applications, proposed permits, and final permit records for a period of 5 years. These records are necessary to fulfill the intent of title V to assure complianc e with applicable requirements. Questions regarding the obligations of a source and its status of compliance can be resolved through such records. All information related to the permitting of sources under this program and related to compliance monitoring is required by section 503(e) of the Act to be subject to public review at all time s. Information entitled to **3.4 Effects of Less**  **Frequent Collecti**  **on**

**3.5 General**  **Guidelines**

**3.6 Confidentiality** **Draft Supporting Statement For**  **the Part 71**  **Federal Operating Permit**  **Program Page**  10 **December 20**  **11** protection under 114(c) of the Act may be required to be submitted directly to EPA. Such information will be stored in EPA’s Confidential Business Information office.**Draft Supporting Statement For**  **the Part 71**  **Federal Operating Permit**  **Program Page**  11 **December 20**  **11** Respondents to this information collection come from sources locat ed where EPA is the permitting authority [ e.g., in Indian c ountry , offshore ( OCS and Deepwater P orts sources) , and where there are unresolved EPA objections to part 70 permits ] . For the purposes of this ICR, the Agency identified the following e xisting part 71 sources: 1 3 0 in Indian country , 6 OCS sources, 6 D WPA sources , and 1 source due to unresolved objection of a part 70 permit . There may also be by

the end of the period covered by this ICR up to an additional 6 permits issued due to economi c growth in Indian Country , up to 9 additional OCS sources and up to 10 additional D WPA sources subject to p ermitting under part 71 . EPA assumes there is one source subject to part 71 because of an EPA objection to part 70 permits (assuming the State will not adequatel y resolve the objection). The Regulatory

Impact Assessment (RIA) for the GHG Tailoring rule estimated there would be up to 552 new sources national ly due solel y to emissions of GHG, and for purposes of this ICR renewal, we estimate there will be up to 6 new GHG sources subject to part 71. Thus, this anal ys is includes a total of 143 sources currently with part 71 permits and an increase of 31 new sources over the ICR period for a permitted total of 174 sources b y the end of the ICR period (April 2015)

. For this update, EPA is not assuming that we will take over any entire State permitting program s due to findings of program deficiencies. A ll NODs for State programs have been resolved to EPA’s satisfac tion and no part 71 permits were issued in response to such programs deficiencies in the interim. Also, at this time EPA has no active NODs and we believe it unlikely that we will be issuing any permits for this reason during the period covered b y this ICR renewal. **4 The Respondents and the Information Requested**  **4.1 Respondents** **Draft Supporting Statement For**  **the Part 71**  **Federal Operating Permit**  **Program Page**  12 **December 20**  **11 SIC and N** **AICS Codes for Part 71 Sources i**  **n Indian Country**

**(as of 10**  **/ 30**  **/0 6**  **) 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 92811
All activities associated with EPA issuance of operating permits are information collection activities and are reflected in this ICR. The following are lists o f the data items submitted by sources and permitting authorities for ICR purposes under part 70. These activities represent the Agency ’s best representation of the burdens experienced by sources and permitting authorities for part 70 and 71 requirements. **4.2 Information**  **Requested Draft Supporting Statement**  **For the**  **Part 71 Federal**  **Operating Permit Program**  **Page** 13 **December 20**  **11 Under Operating Permits rules, the following data items must be**  **submitted by permitting authorities**  **to the EPA:**
1. Applications for permits, permit revisions, and permit renewals 2. Draft / proposed permits, permit revisions, or permit renewals 3. Final permits 4. Annual reports of enforcement activities 5. Semi

- annual reports on compliance monitoring For this anal ys is, the submittals above are onl y necessary for the small fraction of permit handle d by the one delegate agency (14 permits). The majority of permits wil l be issued, implemented, and enforced b y the EPA as permitting authority (160 permits). **Under Operating Permit rules, the following data items must be submitted by sources to**  **permitting authorities :**  1. Applications for permits, permit revisions, and permit renewals 2. Semi

- annual periodic monitoring reports 3. Annual compliance certification reports When the Agency 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 these statutory requirements for reference purposes. **4.2.1 Required Data**  **Items Draft Supporting Statement for the Part**  **71 Federal Operating Permit Program Page**  **14** December 2011 **5.1 Collection Methodology**  **and Management** For the part 71 program, when EPA is the permitting authority, 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 EPA is the permitting authority , we will retain copies of each permit application (including any application for permit modification), each dra ft permit, and each final permit. When a delegate agency is the permitting authority , the delegate agency will receive copies of these documents. Title V provides few ways to mitigate the effects of operating permit regulations on small entities. Under s ection 502(a) of the Act, the Agency has exempted or deferred applicability of title V to most non

- major source categories (up to 50,000 small sources) for which compliance with title V will be impracticable, infeasible, or unnecessarily burdensome

. (For example, see a recent final rule, 70 FR 75320, December 19, 2005, which exempted a large number of small sources

. ) The Agency has not analyzed how many

of these non

- major sources will be small businesses, but believes that a large percentage 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, because this ICR represents a increase of burden due to a change in EPA estimate concerning the number of permits expected to be issued, which better reflect s actual implementation experience , rather than any new information collection requirements, thus there are no adverse effects to be identified vis a vis small entities and small businesses. Items identified in section 4.2.1 are listed below with their schedule for submission.
**Sources** (submitted to permitting authority):

• New permit applications are due within 1 year after a source b e comes 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 **5 The Information Collected** 
**– Collection Methodology and Information**  **Management 5.1**  **Co llection**  **Methodology and**  **Management**

**5.2 Small Entity**  **Flexibility**

**5.3 Collection**  **Schedule Draft Supporting Statement for the Part**  **71 Federal Operating Permit Program Page**  **15** December 2011 these submissions in that they are triggered by

modifications by

the source

• Permit renewal applicati ons are due at least 6 months prior to expiration of the permit

• Semi

- annual periodic monitoring reports are due to be submitted to the permitting authority twice a ye ar on dates specif ied by the permitting authority

• Annual compliance certification reports are due annually on a date specif ied b y the permitting authority**Draft Supporting Statement for the Part 71 Federal Operating Permit Program**  **Page 16**  December 2011 Table 1 lists all of the affected sources subject to permitting b y EPA included in this analysis and the date they begin being subject to permitting b y EPA.

**TA BLE 1**  **IMPLEMENTA**

**TION SCHEDULE FOR SOURCES PERMITTED BY EPA**  **Indian Country**  **Sources OCS** 

**Sources D** **WPA**

**Sources Due to** 

**EPA Objection**  **GHG**

**Tailoring Sources**  May 1, 20 12 130 6 6 1 0 April 30, 2013 2 3 3 0 2 April 30, 20 14 2 3 3 0 2 April 30, 20 15 2 3 4 0 2 **Total 1**  **36** 15 **1 6**  1 **6** During three ye ars of this I CR, the Agency will manage 136 sources in Indian country , up to 15 OCS sources, up to 16 Deepwater P ort sources, up to 1 permit issued because of EPA objection to a part 70 permit and up to 6 GHG Tailoring sources

. The EPA has issued 105 part 71 permits to the 143 sources that will be subject to EPA permitting by May 1, 2012. Thus, at the beginning of this ICR, there will be a backlog of 3 8 existing sources that have not yet received their initial permits

. ( These sources have submitted their initial permit applications, so this ICR includes no burden for preparation of these applications

. ) The Agency projects that the backlogged permits will all be issued during the 3 ye ars of this I CR, 12 in the first year and 1 3 each in ye ars 2 and 3. As shown in Table 1, EPA projects that 31 new sources will become subject to EPA permitting during the course of this ICR ( 6 new Indian c ountry sources, 9 OCS sources, 10 D WPA sources, and 6 due to the GHG Tailoring rule). We calculate the burden for these sources to include all the activities associated with obtaining an initial permit. **6 Estimating the Burden and Cost of the Collection**  **6.1 Estimating the**  **Number of Respondents** 

**There are 174 affected sources in this ICR:**  **136 Sources in Indian Cou**  **ntry 15 Offshore Sources**  **under the OCS 16 Offshore Sources**  **under the DWPA 1 Source due to EPA**  **Objections to Part 70 Permits**  **6 Sources due to the GHG Tailoring Rule** **Draft Supporting Statement for the Part 71 Federal Operating Permit Program**  **Page 17** 
**December 2011** Also during the period of this ICR, a number of part 71 permits will have to be renewed

. ( The term of a part 71 permit is 5 years . ) The EPA estimates that there will be 15 bac klogged permit renewals by May 1, 2012 when this ICR begins. In addition, we estimate that another 63 part 71 permits will be nearing expiration and have to be renewed during the period of this ICR. The Agency

projects that the se 7 8 permit renewals will be issued in equal numbers each year (i.e., 2 6 renewals per ye ar). **Description of Part 71 Permitting A ctiv**  **ities** The following describes the information collection activities required of sources, permitting authorities (whether EPA or a delegate agency) and EPA when overseeing a delegate agency . In all cases, the activities listed for source

- level activiti es match those for sources under the part 70 operating permits programs and the activities for the permitting authority (Whether E PA or a delegate agency) match those for State and local permitting authorities under the part 70 program.

**PERMITTING AUTHORITY ACTIVITIES** 1. **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. 2. **Permit application review,** including discussions with a source concerning the completeness of the permit application, review of applications for completeness and technical approach, and requests for additional information, when necessary

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

- filing monitoring, when necessary , and drafting permit terms and conditions to reflect existing requirements. 4. **Comment period notification:** Providing notice to the public, and affected States of the comment period on a draft permit (for initial permit issuance, permit renewal and significant permit**Draft Supporting Statement for the Part 71 Federal Operating Permit Program**  **Page 18** 
**December 2011** modification). Affected State notification is also required for minor permit modification.

**SOURCE -**  **SPECIFIC ACTIVITIES**
1. **Permit application preparation** , including internal meetings, permitting authority discussions, management and legal department involvement, responsible official certification, c ontractor services 2. **Draft permit development** : Interaction with the permitting authority on draft permit development 3. **Gap -**  **filling development** : Development of periodic monitoring gap

filling, if applicable 4. **Public hearing participation** 5. **Operate gap -**  **filling perio dic monitoring:**  Operation of monitoring equipment and the taking and keeping of records, where necessary 6. **Monitoring reports** : Preparing semi

- annual monitoring data reports, including data anal ys is, responsible official certification, and report submission ( annual burden for both reports). Includes preparing and submitting annual compliance certification 7. **Permit revisions** : Preparing applications for permit revisions 8. **Permit renewal** : Preparing permit renewal applications 9. **Other activities associated with permit r enewal**  , including discussions with permitting authority and public hearing participation **EPA OVERSIGHT ACTIVITIES**

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

• **Review monitorin g**  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 any 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, program evaluation, development of formal EPA**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **19** December 2011 responses to public petitions , and review changes to delegated programs . The foll owing tables show the burden estimates for each activity described above. These burden estimates are all taken from the approved ICR for the part 70 program. Table 2 displays the expected source burden for when either EPA or a delegate agency is the permitting authority

. Burden means the total time, effort, and financial resources expended by persons to generate, maintain, retain, disclose, or provide information to or for a Federal agency

. This includes the time needed to review instructions; develop, acq

uire, install, and utilize technology and systems for the purposes of collecting, validating, and verifying information; processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previousl y 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. The Agency

derive d 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 by 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 s tate and local permitting program evaluations. Inthe initial ICR for part 71, the Agency assumed sources are indifferent (from an effort perspective) between reporting to the Federal government and reporting to a State permitting authority

. 7 Consequently , Table 2 is the same for both part 70 and this I CR.

7 May, 1995, United States Environmental Protection Agency, Part 71 I nformation Collection Request , p 19. **6.2 Estimating**  **Burden Draft Supporting Statement for th**  **e Part 71 Federal Operating Permit Program**  **Page 20**  December 2011 **TA BLE 2**  **SOURCE BURDEN BY A CTIVITY** 
**AC TIVITY**  **BURDEN PER SOURCE OR PERMI**  **T** Prepare Initial Permit Application 300 hrs Draft Permit Interaction 40 hrs Gap
-filling Monitoring Development (50% of permits) 40 hrs Public Hearing Participation (2% of permits) 10 hrs Operate Gap
-filling Periodic Monitoring (50% of permits) 200 hrs / yr Prepare Monitoring Reports and Compliance Certification 80 hrs / yr Permit Revisions Significant Permit Modifications (10% of Permits) Minor Permit Modifications (50% of Permits) Administrative Amendments (50 % of Permits) 80 hrs 40 h rs 8 hrs Prepare Permit Renewal Application 200 hrs Other Permit Renewal Activities 20 hrs Table 3 displays the expected burden for all of the specific tasks necessary for any permitting authority (EPA or delegate agency) and table 4 for EPA oversight of delegate programs

.**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **21** December 2011 **TA BLE 3**  **PERMITTING A UTHORITY BURDEN BY A** **CTIVITY**
**AC TIVITY**  **PA RT 7**  **1 BURDEN PER PERMIT OR**  **PROGRA M**  Program Administration 3,500 hrs / PA / yr Initial Permit Application Review 100 hrs / permit Draft Permits Preparation 150 hrs / p ermit Comment Period Notification 10 hrs / permit Hold Public Hearings (2% of permits) 100 hrs / hearing Analyze Public Comments (2% of permits) 40 hrs / permit Permit Issuance 8 hrs / permit Permit Revision Significant Permit Modification Min or Permit Modification Administrative Amendment 9 0 hrs / permit 3 0 hrs / permit 5 hrs / permit Permit Renewal 9 0 hrs / permit Review Reports: Monitoring (2 reports / yr) Compliance Certification 10 hrs / permit 5 hrs / permit

**TA BLE 4**  **EPA AC**  **TIVITIES (OVERSIGHT OF DELEGA**  **TE A GENC**  **Y )**  **AC TIVITIES**  **BURDEN HOURS PER PERMIT / PROGRA** **M** 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 / year Review the Annual Enforcement Activity Reports 10 / report
* Includes the burden for review of periodic monitoring **6.3 Estimating Wages** **Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **22** December 2011 Historically , the Agency

had assumed 70% of all source burden categories would be performed in

- house, with the remaining 30% delegated to contractors. 8 However, this renewal incorporates the previous ICR re

assessment of that assumption, which is based on allocation of contractor support for only

the initial permit application task. This analysis assumes one - third of the source's initial permit application preparation would be performed b y contracted labor. The remainder of the source's tasks would be done entirel y in

- house. In the 2000 ICR renewal, EPA determined source wage rates based on data from the 1997 Statistical Abstract of the United States , adjusted to 1999 dollars using the Emplo yment Cost Index (ECI). The Agency estimated the total hourly

cost of in

- house labor using the wage rates for technical support staff (at full time), administrative staff (at one

- eleventh time), and administrative support staff (at one

- eighth time), adding in the costs for benefits, sick leave/vacation, and general overhead. The resulting hourl y cost was $32 per hour for in

- house labor. In the 2004 I CR renewal, EPA calculated an updated hourly cost for in

- house labor using the same methodology . At that time, the hourl y cost was $34 p er hour. For the 2007 ICR renewal, the Agency was unable to duplicate the methodology

used in 2000 and 2004 because the Bureau of the Census has changed the data reported in the Statistical Abstract of the United States

. Instead, EPA updated the hourly co st for in

- house labor by adjusting the 2004 value (in 2003 dollars) to 2006 dollars using the ECIfor white

- collar workers in private industry . Then in the change justification for the GHG Tailoring rule, we adjusted the wage rates based on an index for De cember 2007 relative to December 2006 for private industry workers, management, professional, and related workers, as contained in the U.S. Department of Labor, Bureau of Labor Statistics, Employ ment Cost Index Historical Listing: Current Dollar March 2001

- March 2009 . This calculation resulted in an hourly

cost of $39 for in

- house labor for sources as detailed below in Table 5.

8 United States Environmental Protection Agency, Regulatory Impact Analysis and Regulatory Flexibility Act Screening for Operating Permits Regulations , EPA

- 450/2

- 91

- 011, June 1992, pp. 16

- 17. **6.3 Estimating Costs**  **6.3.1 Estimating**  **Source Costs Draft Supporting Statement for th**  **e Part 71 Federal Operating Permit Program**  **Page 23**  December 2011 **TA BLE 5**  **DETERMINA**

**TION OF SOURCE IN -**  **HOUSE and Contractor**  **BURDEN COSTS** factor ECI Cost Cost 2007 2006 2007 * 
03179

. 0 * 8

. 103 8

. 103 1

. 107 * / 83

. 37 $ 2007 

 hour factor ECI

In

- hour Cost2007 = $37.83 /hour x 1.032 = $39.03/hour Contractor Cost 2007 = $143/hour x 1.032 = $147.58/hour

. For contracted labor, operating permit management and reporting require the same skills employed by the EPA's consultants. For the 2000 ICR, as an estimation of a source's consulting costs, the Agency averaged the fully loaded cost of three environmental contractors at the PL2 (secretarial support), PL3 (technical), and PL4 (administration) levels , appl ying the methodology

employed below in Table 6 for establishing a Federal and PA FTE wage rate. he full y loaded hourl y cost calculated at that time for Industry

- hired consultants is $268 (1999 dollars). Therefore, the hourly rate for preparing the initial permit application was set at $111 for the 2000 ICR (1/3 of $268 plus 2/3 of $32). All other source tasks were estimated using the in

- house hourl y cost of $32 per hour. Because of the confidential nature of the values used to estimate contractor hourly costs, the exact methodology was not documented in the 2000 I CR. As a result, for the 2004 ICR renewal EPA used the ECIto update the hourly cost for preparing initial permit applications, calculating a value of $131 per hour. For the 2007 IC R renewal, EPA used the same approach. The Agency

used the methodology

detailed above in Table 5, except that we started with the value in 1999 dollars ($111 per hour) and used the ECI for 1999 (146.9) in place of the ECIfor 2003. This resulted in an hourly cos t for preparing an initial permit application of $143. All other source tasks are estimated at the in

- house hourly cost of $38 per hour, as discussed above. In December 2010 for purposes of calculating the wage rates for purposes of the ICR change justific ation for the GHG tailoring rule, EPA calculated the**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **24** December 2011 wage rates for in

- house and contractor wages as shown in Table 5, which resulted in an in

- house wage rate of $39/hour and a contractor rate of $148/hour. We use these wage rate assumptions in this analys is. Historically , the Agency

applied a $34 per hour rate for Federal and State full time employee (FTE) wage rates. During the development of the ICR for the part 71 Federal Operating Permit Regulations, the Agency was instructed by

the Office of General Council (OGC) to compute more accurate estimations of these hourl y costs. To determine the appropriate hourly wage to appl y for each respondent burden estimation, OGC instructed the Agency

to assume the appropriate FTE rate to appl y would be a GS

- 11 Step 3, fully

loaded to account for overhead, benefits, and all other appropriate costs. To fully incorporate the cost of that FTE's support staff and managerial costs, the Agency also assumed one

- eleventh of a manager's time (at a GS

- 13, Step 3 level), and one

- eighth of a secretary's time (at a GS

- 6, Step 6 level). Applyingthe same process for this I CR renewal, the Agency has determined the appropriate cost of Federal and delegate permitting authority burden at $46 per hour. Table 6 displays the calculation of this rate.
**TA BLE 6**  **DETERMINA**

**TION OF FEDERA L A**  **ND PERMITTING A UTHORITY BURDEN COSTS**  Annual Salary of Permit Staff, GS 11 Step 3 (FY 07 Schedule)* $50,106.00 Annual Cost of Supervisory Staff, GS 13 Step 3 (FY 076 Schedule )* $71,415.00 Factor (1/11) 0.09 $6,427.35 Annual Cost of Admin. Support Staff, GS 6 Step 6 (FY 06 Schedule)* $33,322.00 Factor (1/8) 0.13 $4,331.86 Annual Applicable Salary of Permit Staff $60,865.21 Benefits (at 16%) $9,738.43 Sick Leave/Vacation (at 10%) $6,086.52 General Overhead $18,511.67 Total Cost Per FTE $95,30 1.83 Total Hourly Cost ( Total Per FTE divided by 2,080 hours per year) $45.77 * http://www.opm.gov/oca/06tables/html/gs.asp, January 4, 2007 **6.3.2 Estimating PA**  **and A gency**  **Costs Draft Supporting Statement for th**  **e Part 71 Federal Operating Permit Program**  **Page 25**  December 2011 Table 7 lists the burden categories, expected number of occurrences for each, and the associated burden and costs for sources when EPA or a delegate agency is the permitting authority

. The quantities in the “affected permits” column are from direct assessments of the 1 74 permits expected to be administered during the period covered b y this I CR (1 4 3 Indian country sources, 15 OCS sources, 16 D WPA sources, 1 due to EPA objection , and 6 due to the GHG Tailoring rule ). Each activity in Table 7 is based on the burden estimates from Table 2

. Tables 7 and 8 contain the baseline analysis (does not account fo r OMB

- approved changes due to the Flexible Air Permits and GHG Tailoring rules). The assumptions in these tables are based on the assumptions detailed in the attachments to the ICR renewal for the part 70 state operating permit programs

. **6.4 Estimat**  **ing Costs for Permitting A uthorities** 
**6.4.1 Estimating**  **Source Costs Draft Supporting Statement for th**  **e Part 71 Federal Operating Permit Program**  **Page 26**  December 2011 **TA BLE 7**  **3 -** **YEA R**  **BURDEN A ND COST OF**  **S OURCES** 

**AC TIVITY**  **BURDEN PER**  **PERMIT (HOURS)**  **RA**

**TE PER**  **HOUR AF**  **FECTED**

**PERMITS TOTA**  **L**

**THREE -** **YEA R**  **BURDEN (HOURS) TOTA**  **L THREE**  **- YEA**  **R COSTS**  **( $2007**  **)** Initial Permit Application 300 $14 8 31 9,300 1,329,900 Draft Permit Inte raction 40 $39 69 2 ,7 6 0 104,880 Gap Filling Monitoring Development (50% of permits) 40 $3 9 35 1,380 52,440 Public Hearing Participation (2% of permits) 10 $3 9 1 1 4 524 Operate Gap Filling Monitoring (50% of permits) 200 $39 ye ar 1 53 year 2 64 year 3 75 year 1 10,6 00

year 2 12,800 year 3 1 5 ,000 3 8, 4 00 402,800 486,400 570,000 1,459,200 Prepare Monitoring Reports and Compliance Certificatio ns (all permits) 80 $39 year 1 105 year 2 127 year 3 1 50 year 1 8 ,400

year 2 10 , 1 60 year 3 12,000

30 , 560 319,200 386,080 456,000 1,161,280 Permit Revisions Significant Perm it Mods (10% of existing permits)
Minor Permit Mods (50% of existing permits)
Admin Amendments (50% of existing permits)

Revision Subtotal 80

40

8 $39 year 1 11 year 2 1 3 year 3 1 5

3 9 year 1 53 year 2 64 year 3 75

1 92 year 1 53 year 2 6 4 year 3 75

1 92 year 1 880 year 2 1,040 year 3 1,200

3 , 1 20 year 1 2, 1 20 year 2 2,560 year 3 3,000

7 , 680 year 1 424 year 2 512 year 3 600

1, 536 9,184 33,440 39,520 45 , 600 118 , 56 0 80,560 97,280 114,000 291 , 840 16,112 19,456 22,800 58,368 Renewal Permit Application 200 $39 7 8 1 5 , 600 592,800 Other Renewal Activities 20 $39 7 8 1, 560 59,280 **TOTA LS**  111,910 5,229,072

Table 8 lists the burden categories for permitting authorities (EPA and delegate agency) , the expected number of permits involved, and the expected cost for each category , based on the burden estimations from Table 3. Since the burden per activity assumptions and wage rates are the same for EPA and delegate agencies we will show all sources in this table and later we will pro rate the total to show the burden for each permitting authority

. **6.4.2 Estimating**  **Permitting Ag**  **ency Costs** **Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **27** December 2011 **TA BLE**  **8 3**  **- YEA**  **R BURDEN A**  **ND COST OF PERMITTING A UTHORIT**  **IES AC**  **TIVIT Y**  **Burden Hours per Permit** ****** **Af**

**fected Permits or Programs**  **Total 3**  **- Year** 

**Burden (Hours) Total**  **3 -** **Year**

**Cost ($200 7**  **)** ***** Program Administration 3,500 per year 1 10, 500 $ 4 83 , 0 00 Permit Application Review 100 31 3,1 00 $ 142 , 6 00 Draft Permit Preparation 150 69 10,35 0 $ 476 , 10 0 Comment Period Notification 10 69 690 $ 31,740 Public Hearing (by Hearing) (2% of permits) 100 1 100 $4, 6 00 Analyzing Public Comments (2% of permits) 40 1 40 $1,8 4 0 Permit Issuance 8 69 552 $ 25,392 Permit Revisions Significant (10% of pe rm its) 9 0 3 9 3 , 51 0 $ 1 61 ,4 6 0 M inor (50% of permits) 3 0 1 92 5,760 $ 264 , 960 Administrative (50% f permits) Revision Subtotal 5 1 92 960 10 , 230 $ 44,160

$ 470 , 580 Permit Renewals 9 0 7 8 7 , 020 $ 322 , 92 0 Review Monitoring / Com pliance Re p orts Y ear 1 Year 2 Year 3 15 15 15 105

127 1 50 1, 575 1, 905 2 , 250 5 , 73 0 $ 72,450

$ 87,630 $ 103 ,5 00 $ 263 , 580 To tals 48 , 312 $ 2 , 222 ,35 2 * The wage rate applied was $4 6 per hour, see Section 6.3 .2 Estimating PA and Agency Costs for details. ** Units are per permit except program administration (per PA) and public hearings (per hearing) Concerning EPA oversight of the delegate agenc y , past experience with part 70 suggests that this function averages about 2 hours per source per year on an aggregate basis

. In th e case of this delegate agency , all of these permits were previousl y issued by EPA prior to the approval of the delegation agreement and the delegation agreement does not provide for any new permits to be issued by

the Nation. Thus EPA believes th e assumption of 2 hours per source will be appropriate due to the reduced scope of the programs and the small number of permits involved

. As a result, EPA ’s baseline estimate of the burden to oversee the delegate agency will be approximately

84 hours for 3 years or 28 hours per year and the costs about $3.9 thousand and $1.3 thousand, respectively

.**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **28** December 2011 **6.4.3 Accounting**  **for OMB**  **- Approved**  **ICR Changes**  **s ince the Last Renewal** 

Since the approval of the 2007 ICR renewal, EP A has promulgated several rules which have affected the burden and cost of title V permitting, the Flexible Air Permits and the GHG T ailoring rule. The Offic e of Management and Budget (OMB) has approved ICR change requests for both of these rules, EP

A tracking numbers 1 703.09 and 1587.1 1, respectivel y; however, this is the first ICR renewal that will addresses the two regulatory

changes at the same time and up date them for their current stage of implementation

. The Flexible Air Permits (FAP) rule, promulgated during the term of the last ICR renewal, revised part 70 to provide for permits that for allow for upfront approval for changes in order to avoid formal submittal and processing of significant permit modifications (SPM) and minor permit modifications (MPM) during the term of the permit. The FAP rule did not increase the number of sources subject to title V permitting and it only applies to a relativel y smal l number of new and existing sources that would need to get a permit anyway. While there is typically an increased burden to put the flexible provisions in the permit, once added, they allows the source to avoid permit modifications (MPM) on a recurring, open - ended basis, resulting in an overall decrease in burden over the long term.
T ables 7 and 8 show the baseline burden of issuing and implementing FAP permits, while tables 9

- 11 show the incremental burden compared to the baseline attributable to these permits. There are burden increases for issuing new T ier 2 permits and burden decreases for avoided modifications for all T ier 1 and 2 permits expected b y the end of the ICR period

. The burden for EPA oversight is related to reviewing and consulting with the delegate agency on modifications that occur solel y due to GHG (usuall y related to combustion sources). The EPA estimated in the FAP ICR that 5 percent of the total number of existing sources would obtain a comprehensive flexible permit (a “Tier 1” per mit) and that an additional 10 percent of all existing sources and new sources would seek simpler flexible permits (“Tier 2” permits). The FAP ICR assumed all existing sources would be issued T ier 1 and 2 permits during the period of that ICR, and that there would be no new T ier 1 permits**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **29** December 2011 needed after that period ended. Thus, for this ICR period, we estimate that only new T ier 2 permits will be issued. Table 9, 10, and 11 lists the burden categories, the number of estimated occurrences, and the expected co sts, based on the burden estimations made in the previous OMB

- approved ICR change worksheet for the Flexible Air Permits rule. Our assumptions for the mix of activities expected to occur under this rule has changed compared to the change worksheet due to the normal evolution of the program. Also, the number of affected permits has changed because of different estimates of the number of existing part 71 permits over the period.
**TA BL**  **E 9**  **3 -** **YEA R**  **INCREMENTA L BURDEN A**  **ND COST OF THE FA** **P RULE FOR SOURCE A** **CTIVITIE S**  **AC TIVITY**  **Burden Hours per**  **permit Rate per** 

**hour Af** 

**fected permits**  **Total Burden**

**(Hours) TOTA**  **L COST (2007)**

**Tier 1 –**  **5 MPM A**

**voided per y**  **ear** - 40 $39 5
- 3,150
- $ 122,850 **Tier 1 -**  **1 SPM A**

**voided every**  **5 y ears**  - 80 $39 5
- 240
- $ 9,360 **Tier 2 –**  **New Permit** 60 $148 7 420 $ 62,160 **Tier 2 –**  **1 MPM A**

**voided per y**  **ear** - 40 $39 11
- 1,320
- $ 51,480 **TOTA L** 
- 4,290
- $ 121,530

**TA BLE 1**  **0 3**  **- YEA**  **R INCREMENTA** **L BURDEN A ND COST OF THE F**  **A P RULE FOR PERMITTING A**  **UTHORITY A CTIVITIES**  **AC TIVITY**  **Burden Hours per**  **permit Rate per** 

**hour Af** 

**fected p**  **ermits Total Burden** 

**(Hours) TOTA**  **L COST (2007)**

**Tier 1 –**  **5 MPM A**

**voided per y**  **ear** - 30 $46 5
- 2,363
- $ 108,675 **Tier 1 -**  **1 SPM A**

**voided every**  **5 y ears**  - 90 $46 5
- 270
- $ 12,420 **Tier 2 –**  **New FA P Permit**  **issued** 45 $46 7 315 $ 14,490 **Tier 2 –**  **1 MPM A**

**voided per y**  **ear** - 30 $46 1 1
- 990
- $ 45,540 TOTAL
- 3,308
- $ 152,145**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **30** December 2011 **TA BLE 1**  **1 3**  **- YEA**  **R INCREMENTA**  **L BURDEN A ND COST OF THE F**  **AP RULE FOR EPA**  **OVERSIGHT AC**  **TIVITIES**

The GHG Tailoring Rule, also promulgated during the term of the last ICR, “tailors” the requirements of the Clean Air Act to limit the number of facilities that would otherwise be required to obtain title V permits solely due to their emissions of Greenhouse Gases (GHG). Prior to the Tailoring Rule there were no requirements for sources to consider GHG emissions in their title V permit applications or permits and there were no applicable requirements related to GHG to put into title V permits. We are currently in S tep 2 of the imp lementation schedule of the Tailoring Rule and EPA assumes that there are about 552 GHG sources subject to Title V during this step and that all of these sources will be issued single source permits (non

general permits). For part 71 , we estimate there wil l be up to 6 new sources subject solely

due to GHG emissions

. The baseline burden of permitting GHG sources is shown in tables 7, 8 and 9 , while tables 12

- 14 show the incremental burden compared to the baseline for addressing GHG emissions in permits

. The incremental GHG burden is shown in Tables 1 2 , 1 3 and 1 4 below. Note that EPA assumes the burden for issuing new GHG permits is the same as non

- GHG permits, so there is no incremental burden for new permit issuance included in the tables below. Specifically , included in the tables below is the incremental burden for sources and permitting authorities alike to address GHG in all new non

GHG permits (including backlog sources), the burden of permit modifications solely

related to GHG (based on the number of NSR actions **AC TIVITY**  **Burden Hours per**  **permit Rate per** 

**hour Af** 

**fected permits**  **Total Burden**

**(Hours) TOTA**  **L COST (200 7)** 

**Tier 1 –**  **5 MPM A**

**voided per y**  **ear** - 1 $46 1
- 21
- $ 966 **Tier 1 -**  **1 SPM A**

**voided every**  **5 y ears**  - 8 $46 1
- 8
- $ 368 **Tier 2 –**  **New Permit** 8 $46 0 0 $ 0 **Tier 2 –**  **1 MPM A**

**voided per y**  **ear** - 1 $46 3
- 8
- $ 386 TOTAL
- 37
- $ 1,720**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **31** December 2011 involving GHG included the NSR I CR), the burden of addressing GHG in all existing non

- GHG permits when they undergo minor permit or significant modification procedures , and the burden of addressing GHG in 80 percent of all permit renewals. For EPA, the additional incremental burden is for reviewing and consulting with delegate agency authorities on minor and significant modifications that occur solely due to GHG. 9
Table s 13 , 14 and 15 lists the burden categories, the number of estimated occurrences for each item, and the expected costs for each, based on the burden estimations made in the previous OMB

- approved ICR change worksheet for the GHG Tailoring rule. Compared to the change worksheet for this rule, these tables have be updated to refle ct new estimates of existing permits and the mix of activities expected to occur due to the expected evolution of the program.
**TA BLE 1**  **2 3**  **- YEA**  **R INCREMENTA** **L BURDEN A ND COST OF THE GHG TA** **ILORING RULE FOR SOURCE AC**  **TIVITIES AC**  **TIVITY Burden**  **Hours per permit**  **Rat e per** 

**hour Af** 

**fected permits**  **Total**

**Burden (Hours)**  **TOTA L COST** 

**(2007) Prepare A** **pplication (add GHG to non**  **- GHG permit)**  34 $148 34 1, 156 $ 1 7 1,088 **Modification due to GHG** 43 $39 30 1, 290 $ 5 0 , 3 10 **Modification to address GHG to non**  **- GHG permit**  4 $39 2 31 9 24 $ 36 , 036 **Ad dress GHG at Renewal**  20 $39 62 1,248 $ 48,672 **TOTA L**  4 , 618 $ 306 , 106 **TA BLE 1**  **3 3**  **- YEA**  **R INCREMENTA** **L BURDEN A ND COST OF THE GHG TA** **ILORING RULE FOR PERMITTING AU**  **THORITY ACTIVITIES**  **AC TIVITY**  **Burden Hours per**  **permit Rate per** 

**hour Af** 

**fected permits**  **Tot al** 

**Burden (Hours)**  **TOTA L COST** 

**(2007) Prepare A** **pplication (add GHG to non**  **- GHG permit)**  43 $46 34 1,462 $ 67,252 **Modification due to GHG** 40 $46 30 1,200 $5 5 , 2 00 **Modification to address GHG in non**  **- GHG permit**  4 $46 231 924 $ 42 , 504 **Ad dress GHG at Renewal**  9 $4 6 62 562 $ 25 , 834 **TOTA L**  3 05,937 $ 190 , 790

9 Note we did not include administrative permit modifications because there is no requirement for EPA review for these and they do not involve substantive changes.**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **32** December 2011 **TA BLE 1**  **4 3**  **- YEA**  **R INCREMENTA** **L BURDEN A ND COST OF THE GHG TA** **ILORING RULE FOR EPA OVERSIGHT**  **AC TIVITIES**  **AC TIVITY**  **Burden Hours per**  **permit Rate per** 

**hour Af** 

**fected permits**  **Total**

**Burden (Hours)**  **TOTA L COST** 

**(2007) R** **eview Modification due to GHG**  8 $46 2 16 $ 736 **Consult on Modification due to GHG**  8 $46 1 8 $ 368 **TOTA** L 24 $ 1, 104

There are no expected capital or O&M costs for this ICR. Moreover, the regulations do not mandate the purchase of any capital equipment, nor do they require any

O&M procedures. Although EPA does not have separate estimates for capital and O&M costs, we believe past input from State permitting authorities on the burdens of part 70 programs may have considered such costs within their estim ates for the burden of program activities (e.g., the costs of obtaining computers to aid in program administration)

.

T able 1 5 show s the calculation of the bottom line burden for the 3

- ye ar period and table 16 shows the bottom line cost for the 3

- ye ar p eriod , accounting for OMB

- approved changes related to the Flexible Air Permits and GHG tailoring Rules (these changes were previously approved b y OMB subsequent to the 2007 ICR renewal). Tabl e 1 7 show s the overall bottom line burden and cost for this renew al ICR (incorporating the totals from tables 15 and 16)

. Note that we separated the burden and cost for EPA and the delegate agency

as permitting authorities in these tables based on the prorated share of permit each administers.

**TA BLE 1**  **5 CA**  **LCUL ATI**  **O N OF BOTTOM LINE TOTA** **L (3 -** **YEA R) BURDEN**  **(HOURS) Respondent**  **Baseline Flexible A** **ir Permit GHG T**  **ailoring TOT** 

**AL 6.4.5**  **Capital and O&M Costs** 

**6.4.6 Bottom Line Burden Hours and Cost** **Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **33** December 2011 **Sources** 1 11 , 910
- 4,290 4,618 11 2 , 238 **PA (T** **ribe)** 3,887
- 265 332 3 , 954 **Federal (P**

**A)** 44,425
- 3,043 3,816 45,198 **Federal ( Oversight**  **)** 84
- 37
- 24 71 **TOT AL**  160,306
- 7,635 8,790 16 1 ,4 61

**TA BLE 16**  **C AL**  **CUL ATI**  **ON OF BOTTOM LINE TOTA L (3**  **- YEA**  **R) COST ($2007)**

**TA BLE 17**  **BOTTOM LINE BURDEN A ND COST (2012**  **- 2015)**  **Number of**  **Af fected**  **Entities Total ICR** 

**(3 -** **Year) Burden**  **Hour Av**  **erage**

**An nual**  **Burden Per Respondent**  **Av erage** 

**An nual**  **Burden Per**  **Source Total ICR** 

**(3 -** **Year) Cost**  **Av erage** 

**An nual Cost**  **Per Respondent**  **Av erage** 

**An nual**  **Cost Per Source** 
**Sources** 1 74 1 1 2 , 238 2 15 2 15 $ 5,413 , 648 $ 10 , 372 $ 10,372 **PA (T**  **ribe)** 1 3,954 3,954 9 4 $ 181 ,9 01 $ 181,901 $ 4,331 **Federal (PA )**  1 45,198 45,198 94 $2,079,095 $2,079,095 $4,331 **Federal (Oversight)**  1 71 2 4 2 $ 3,248 $ 3,248 $ 77
**Total** 161,461 NA NA $ 7 , 677 , 89 2 NA NA

On average, the Agency

estimates the 3

- year cost to sources under part 71 (1 74 sources) at about $ 5.4 milli on with burden hours totaling 112 thousand ( 37 thousand hours per year), or about 215 hours per year per source over the three ye ars of the ICR. The burden EPA expects to incur in its role as permitting a uthority under title V is estimated over the 3

- year period covered by this ICR at about 45 thousand hours, or around 94 hours per source per year . The burden the one delegate permitting authority expects to incur is about 4 thousand hours or 94 hours per s ource. The 2007 I CR had no burden hours identified for **Respondent Baseline**  **Flexible A ir Permit**  **GHG T ailoring**  **TOT**

**AL Sources**  $ 5,229,072
- $ 121,530 $ 306,106 $ 5,413,648 **P A**  **(T ribe)**  $ 178,810
- - $ 12,172 $ 15,263 $ 181,901 **Federal (P** 

**A )**  2,043,542
- $ 139,973 $ 17 5,526 2,079,095 **Federal ( Oversight**  **)** $ 3,864
- $ 1,720 $ 1,104 $ 3,248 **TOT AL**  $ 7,455,288
- $ 275,395 $ 498,000 $ 7,677,893**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **34** December 2011 delegate agencies because there were no delegate agencies approved at that time. Also, the last ICR ren ewal identified no burden hours for EPA oversight because there were no delegate agencies for EPA to oversee. Also, the Flexible A ir P ermit rule and the GHG T ailoring rule resulted in nearl y offsetting decreases and increases , respectively , in burden and cost. Overall, there is a slight increase in burden for sources and permitting authorities (EPA and delegate agency) due to the GHG tailoring rule and a slight decrease for EPA in its role of overseeing the delegate agency due to the F lexible A ir P ermits R ule

. There are several reasons for the changes in burden in this ICR renewal relative to the 2 007 ICR renewal. The most significant reason causing an increase in burden for sources and permitting authorities has been updated estimates of the number of existing sources and permits due to better data. This data shows increased economic activity occurring in areas under EPA jurisdiction, primarily

due to oil and gas exploration, L NG terminals and several alternative energy development projects. Al so affecting the burden estimates, but to a lesser extent, was an increase in wage rate s applied to the ac tivities of sources and permitting authorities. Table 18 compares the burden in the previous ICR with the burden in this ICR. The approved burden level in the previous ICR was 2 7 thousand h ours per year for sources and 12 thousand burden hours per year for Federal permitting, for a total of 4 0 thousand hours. This ICR estimates total annual burden at 54 thousand hour s with sources accounting for 37 thousand burden hours per year . Permitting b y the delegate agency accounts for about 1.3 thousand hours and permitting by EPA accounts for about 15 thousand hours. Also, federal oversight of the one delegate agency accounts for about .024 thousand hours. The change in burden from the previous ICR is primarily due to updated estimates of the number of sources and permits, rather than any new Federal mandates (the FAP and the GHG Tailoring rule were previousl y approved by OMB but this is the first ICR renewal to address them at the same time and update them for the current stage of implementation).**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **35** December 2011 **TA BLE**  **18 BURD**  **EN CHA NGE**  **(HOURS) FROM 200**  **7 ICR TO CURRENT ICR** 

**Av erage**  **An nual**  **Burden in 200**  **7 ICR**  **Renewal Av**  **erage An**  **nual Burden**  **in ICR Renewal Difference**  **Sources** 27,218 37,413 10,195 **PA (Tribe)**  N/A 1,318 N/A **Federal (PA )**  12,373 15,066 2,693 **Federal (oversight)** N/A 24 N/A **TOTA L**  39,591 53,820 14,229 During the 3

- ye ar period of this ICR there will be an increase in the source burden compared to the previous I CR , primarily due to an increase in economic activity

in offshore areas, which the existing regulations and approved ICR are designed to accommodate . These changes are not due to any EPA actions to revise regulations or policy that have not been previously

approved b y OMB . In the last ICR there were 1 23 sources subject to administration by EPA, while this o ne assumes there will be 1 74 sources , of which 16 will be subject to delegate agency administration and 160 subject to EPA administration

. Due to the large number of respondents, the variation in the circumstances for each respondent, and the varied nature of the activities of the program, it is impractical to attempt to delineate burden by respondent and activity. Following is the apportioned burden for each respondent, derived from the total permitting authority (i.e., EPA) hourl y burden divided by the number of permitting authorities (i.e., 1) , and similarl y for sources.

**TA BLE 1**  **9 BURDEN STA** 

**TEMENT**
**Number of Respondents**  **Total A nnual Burden**  **(hours) Av**  **erage An**  **nual Burden per Respondent**  **(hours) Sources**  1 74 37,413 215 **PA (Tribe)**  1 1,318 94 **Federal (PA )**  1 15,066 94 **Federal (Oversight)**  1 24 2 **6.6 Burden**  **Statement Draft Supporting Statement for th**  **e Part 71 Federal Operating Permit Program**  **Page 36**  December 2011 Send comment on the Agency ’s need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including through the use of automated collection techniques to: Director, Collection Strategies Division

Office o f Environmental Information 2822, Environmental Protection Agency 1200 Pennsylvania Ave. NW, Washington, DC 20460

and to: The Office of Information and Regulatory Affairs Office of Management and Budget 725 17 th Street, NW, Washington, DC 20503 Attention: Desk Officer for EPA.
In c lude the EPA ICR number (1713. 10 ) and OMB control number (2060

- 0336) in any correspondence.**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **37** December 2011 **ATTACHMENT 1 THE STATUTORY REQUIREMENTS FOR RE**  **SPONDENT INFORMATION**

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

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

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

designated (in whole or in part) by r egulations promulgated by the A dministrator (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 p ermitting authority under this title. (Nothing in this subsection shall be construed to alter the applicable requirements of this Act that a permit be obtained b efore construction or mo dification.) 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 requirem ents of this subsection if the Administrator finds that compliance with such requirements is impracticable, infeasible, or unnecessaril y burdensome on such categories, except that the Administrator may not exempt any m ajor 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 contro l 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 timely fashion the completeness of applications. (2) Monitoring and reporting requirements.**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **38** December 2011 (3)(A) Ar equirement under State or local law or interstate compact that the owner or operator of all sources subject to the requirement to obtain a permit under this title p ay an annual fee, or the equivalent over some other period, suff icient to co ver all reasonable (direct and indirect) costs required to develop and administer the permit program 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 c ourt costs or other costs associated with any enforcement action), (iii) emissions and ambient monitoring, (iv) preparing generall y applicable regulations, or guidance, (v) modeling, anal ys es, and demonstrations, and (vi) preparing inventori es and tracking emissions. (B) The total amount of fees collected by the permitting authority s hall conform to 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 reasonable costs of the permit program. (ii) A s 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 primary ambient air quality

s tandard has been p romulgated (except that carbon monoxide shall be excluded from this reference). (iii) In determining the amount under clause (i), the permitting authority i s not required to include any

amount of regulated pollutant emitted by any s ource in excess of 4,000 tons per ye ar of that regulated pollutant. (iv) The requirements of clause (i) shall not apply i f the pe rmitting 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 increase d (consistent with the need to cover the reasonable costs authorized by subparagraph (A)) in each ye ar beginning after the ye ar of the enactment of the Clean Air Act Amendments of 1990 by th e percentage, if any, by which**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **39** December 2011 the Consumer Price Index for the most recent calendar year endin g before the beginning of such ye ar exceeds the Consumer Price Index for the calendar year 1989. For purposes of this clause

- (I) the Consumer Price Index for any calendar ye ar is the average of the Consumer Price Index for all

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

- month period ending on August 31 of each calendar year, and (II) the revision of the Consumer Price Index which is most consistent with the Consumer Price Index for calendar year 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 i s not adequatel y administering or enforcing an approved fee program, the Administrator may , in addition to taking any other action authorized under this title, collect reasonable fees from the sources identified under subparagraph (A). Such fees shall b e designed solely to cover the Administrator's costs of administering the provisions of the permit program promulgated by the Administrator. (ii) Any s ource that fails to pay

f ees lawfull y 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 section 6621(a)(2) of the Internal Revenue Code of 1986 (relating to computation of interest on underpay ment of Federal taxes). (iii) Any f ees, penalties, and interest collected under this subparagraph shall be deposited in a special fund in the United States Treasury f or licensing and other services, which thereafter shall be available for appropriation, to remain available until expended, subject to a ppropriation, to carry out the Agency's activities for which the fees were collec ted. Any f ee required to be collected by

a S tate, local, or interstate agency under this subsection shall be utilized solely to cover all reasonable (direct and indirect) cost s required to su pport the permit program as set forth in subparagraph (A). (4) Requirements for adequate personnel and funding to administer the program. (5) A requirement that the permitting authority have adequate authority

to: (A) i ssue permits and assure compliance by all sources required to have a permit under this title with each applicable standard, regulation or requirement under this Act; (B) issue permits for a fixed term, not to exceed 5 years; (C) a ssure that upon i ssuance or renewal permits incorporate emission limitations and other requirements in an applicable implementation plan; (D) terminate, modify , or revoke and reissue permits for cause;**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **40** December 2011 (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 for each violation, and provide appropriate criminal penalties; and (F) assure that no permit will be issued if the Administrator objects to its issuanc e in a timely manner under this title. (6) A dequate, streamlined, and reasonable procedures for expeditiously d etermining when applications are complete, for processing such applications, for public notice, including offering an opportunity

f or public comment and a hearing, and for expeditious review of permit actions, including applications, renewals, or revisions, and including an opportunity f or judicial review in State court of the final permit action by the applicant, any person who participated in the public comment process, and any other person who could obtain judicial review of that action under applicable law. (7) T o ensure against unreasonable delay by the permitting authority , adequate authority and procedures to provide that a failure of such permitting authority to act on a permit application or permit renewal application (in accordance with the time periods specified in section 503 or, as appropriate, title IV ) shall be treated as a final permit action solel y for purposes of obtaining judicial review in State court of an action brought by any p erson referred to in paragraph (6) to require that action be taken by the permitting authority

on such application without additional delay

. (8) Authority , and reasonable procedures consistent with the need for expeditious action by the permitting authority o n permit applications and related matters, to make available to the public any

p ermit 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 the 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 regul ations promulgated under this Act after the issuance of such permit. Such revisions shall occur as expeditiously a s practicable and consistent with the procedures established under paragraph (6) but not later than 18 months after the promulgation of such s tandards and regulations. No such revision shall be required if the effective date of the standards or regulations 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 requirem ents of this title regarding renewals. (10) Provisions to allow changes within a permitted facility ( or one operating pursuant to section 503(d)) without requiring a permit revision, if the changes are not modifications under any p rovision of title I and 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

p rovides the Administrator and the permitting authority with written notification in**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **41** December 2011 advance of the proposed changes which shall be a minimum of 7 days, 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 multip le sources. (d) S ubmission and Approval.

- (1) Not later than 3 years 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 loc al law or under an interstate compact meeting the requirements of this title. In addition, the Governor shall submit a legal opinion from the attorney

g eneral (or the attorney f or those State air pollution control agencies that have independent legal couns el), or from the chief legal officer of an interstate agency , that the laws of the State, locality , or the interstate compact provide adequate authority to carry out the program. Not later than 1 ye ar after receiving a program, and after notice and opportunity f or public comment, the Administrator shall approve or disapprove such program, in whole or in part. The Administrator may

a pprove a program to the extent that the program meets the requirements of this Act, including the regulations issued under subs ection (b). If the program is disapproved, in whole or in part, the Administrator shall notify the Governor of any revisions or modifications necessary to obtain approval. The Governor shall revise and r esubmit the program for review under this section within 180 days after receiving notification. (2)(A) I f the Governor does not submit a program as required under paragraph (1) or if the Administrator disapproves a program submitted by the Go vernor under paragraph (1), in whole or in part, the Administrato r may , prior to the expiration of the 18

- month period referred to in subparagraph (B), in the Administrator's discretion, apply any o f the sanctions specified in section 179(b). (B) I f the Governor does not submit a program as required under paragraph (1 ), or if the Administrator disapproves any such program submitted by the Governor under paragraph (1), in whole or in part, 18 months after the date required for such submittal or the date of such disapproval, as the case may b e, the Administrator shall apply s anctions 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). (C) The sanctions under section 179(b)(2) shal l not apply pursuant to this paragraph in any area unless the failure to submit or the disapproval referred 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) I f a program meeting the requirements of this title has not been approved in whole for any State, the Administrator shall, 2 years 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 Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **42** December 2011 (e) S uspension.

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

a p ermit 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) P rohibition.

- 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) A ll requirements established under section 112 applic able to "major sources", "area sources," and " new sources." (3) A ll requirements of title I (other than section 112) app licable to sources required 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 th e application of any s anctions 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 m eets the requirements of this title, but is not fully a pprovable, the Administrator may

by r ule grant the program interim approval. In the notice 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 n ot 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 suspended. Such provisions and such obligation of the Administrator shall apply a fter the expiration of such interim approval. (h) E ffective Date.

- The ef fective date of a permit program, or partial or interim program, approved under this title, shall be the effective date of approval by the Administrator. The effective date of a permit program, or partial permit program, promulgated by the Administrator sh all be the date of promulgation. (i) A dministration and Enforcement.

- (1) Whenever the Administrator makes a determination that a permitting authority i s 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, apply any o f the sanctions specified in section 179(b)

.**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **43** December 2011 (2) Whenever the Administrator makes a determination that a permitting authority i s 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). (3) The sanctions under section 179(b)(2) shall not apply pursuant to this subsection in any area unless the failure to adequatel y 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 S tate, unless the State has corrected such deficiency within 18 months after the date of such finding, the Administrator shall, 2 years after the date of such finding, promulgate, administer, and enforce a program under this title for that State. Nothing in thi s paragraph shall be construed to affect the validity

o f a program which has been approved under this title or the authority o f any p ermitting authority

a cting under such program until such time as such program is promulgated b y the Administrator under this paragraph. [42 U.S.C. 7661a]
**SEC. 503. PERMIT APPLICATIONS.** (a) APPLICABLE DATE.

- Any 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 applicant submit with the permit application a compliance plan describing how the source will comply with all applicable requirements under this Act. The c ompliance plan shall include a schedule of compliance, and a s chedule under which the permittee will submit progress reports to the permitting authority n o less frequentl y than every

6 months. (2) The regulations shall further require the permittee to periodically (but no less frequentl y than annually) certify that the facility

i s in compliance with any applicable requirements of the permit, and to promptl y report any deviations from permit requirements to the permitting authority. (c) DEADLINE.

- Any perso n 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**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **44** December 2011 under this title, or such earlier date as the permitting authority m ay e stablish, submit to the permitting authority a compliance plan and an application for a permit signed by a responsible official, who shall certify the accuracy

o f the information submitted. The permitting authority shall approve or disapprove a completed application (consistent with the procedures established under this title for consideration of such applications), and shall issue or deny the permit, within 18 months after the date of receipt thereof, except that the permitting authority s hall establish a phased schedule for acting on permit applications submitted within the first full ye ar after the effective date of a permit program (or a partial or interim program). Any such schedule shall assure that at least one - third of such permits will be acted on by such authority

annuall y over a period of not to exceed 3 years after such effective date. Such authority shall establish reasonable procedures to prioritize such approval or disapproval actions in the case of applications for construction or modification under the applicable requirements of this Act. (d) TIMELY AND COMPLETE 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 by this title (including renewals), but final action has not been taken on such application, 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 timely 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 sub section (c). (e) COPIES; AVAILABILITY.

- A cop y 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 disclosure 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) CONDIT IONS.

- 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 authority, no less often than every 6 m onths, the results of any r equired monitoring, and such other conditions as are necessary to assure compliance with appl icable requirements of this Act, including the requirements of the applicable implementation plan.**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **45** December 2011 (b) MONITORING AND ANALYSIS.

- The Administrator may b y rule prescribe procedures and methods for determining compliance and for monitoring and analysis of po llutants 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 any continuous emissions monitoring requirement of title IV, or where required elsewhere in this Act. (c) INSPECTION, ENTRY, MONITORING, CERTIFICATION, AND REPORTI NG.

- Each permit issued under this title shall set forth inspection, entry , mo nitoring, compliance certification, and reporting requirements to assure compliance with the permit terms and conditions. Such monitoring and reporting requirements shall conform to any a pplicable regulation under subsection (b). Any report required to be submitted by a permit issued to a corporation under this title shall be signed by a r esponsible corporate official, who shall certify its accuracy

. §70.5(c) S

tandard applications form and required information

. The State program under this part shall prov ide 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 a pprove 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 activities which are exempted because of size or production 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

a pplicable requirement, or to evaluate the fee amount required under the schedule approved pursuant to §70.9 of this part. The permitting authority may u se discretion in devel oping application forms that best meet program needs and administrative efficiency

. The forms and attachments chosen, however, shall include the elements specified below: (1) I dentifying information, including company name and address (or plant name and address if different from the company n ame), owner's name and agent, and telephone number and names of plant site manager/contact. (2) Adescription of the source's processes and products (b y Standard Industrial Classification Code) including any associated alternative scenario identified by the source. (3) The following emission related information: (i) A ll emissions of pollutants for which the source is major, and all emissions of regulated air pollutants. A permit application shall describe all emi ssions of regulated air pollutants emitted from any emissions unit, except where such units are exempted under this paragraph (c) of this section. The permitting authority shall require additional information related**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **46** December 2011 to the emissions of air pollutants suff icient to verify

which requirements are applicable to the source, and other information necessary to collect any permit fees owed under the fee schedule approved pursuant to §70.9(b) of this part. (ii) Identification and description of all points of emis sions described in paragraph (c)(3)(i) of this section in sufficient detail to establish the basis for fees and applicability o f 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) I dentification and descriptio n of air pollution control equipment and compliance monitoring devices or activities. (vi) L imitations on source operation affecting emissions or any work practice standards, where applicable, for all regulated pollutants at the part 70 source. (vii) O ther information required by any a pplicable 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 description of all applicable requirements, and (ii) Description of or reference to any a pplicable test method for determining compliance with each applica

ble requirement. (5) O ther specific information that may b e necessary

to implement and enforce other applicable requirements of the Act or of this part or to determine the applicability o f such requirements. (6) An explanation of any proposed exemption s from otherwise applicable requirements. (7) A dditional information as determined to be necessary b y the permitting authority to define alternative operating scenarios identified by 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 for all part 70 sources that contains all the following: (i) Adescription of the compliance status of the source with respect to all applicable requirem ents. (ii) A description as follows: (A) F or applicable requirements with which the source is in compliance, a statement that the source will continue to comply with such requirements.**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **47** December 2011 (B) F or applicable requirements that will become effective during the permit term, a statement that the source will meet such requirements on a timely basis. (C) F or 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) F or applicable requirements with which the source is in compliance, a statement that the source will continue to comply with such requirements. (B) F or applicable requirements that will become effective during the permit term, a statement that the source will meet such requirements on a timel y basis. A statement that the source will meet in a timely m anner applicable requirements that become effective during the permit term shall sati sfy

this provision, unless a more detailed schedule is expressly r equired by the applicable requirement. (C) As chedule 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 milestones, leading to compliance with any a pplicable requirements for which the source will be in noncompliance at the time of permit issuance. This complianc e schedule shall resemble and be at least as stringent as that contained in any judicial consent decree or administrative order to which the source is subject. Any such schedule of compliance shall be supplemental to and shall not sanction noncompliance wi th, the applicable requirements on which it is based. (iv) Aschedule 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 pl an content requirements specified in this paragraph shall apply and be included in the acid rain portion of a compliance plan for an affected source, except as specificall y superseded by r egulations promulgated under title IVo f the Act with regard to the schedule and method(s) the source will use to achieve compliance with the acid rain emissions limitations. (9) Requirements for compliance certification, including the following: (i) Ac ertification 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) As tatement of methods used for determining compliance, including a description of monitoring, record keeping, and reporting requirements and test methods; (iii) A schedule for submission of compliance certifications during the permit term, to be submitted no less frequently than annuall y, o r more frequently i f specified by

the underlying applicable requirement or by the permitting authority ; and**Draft Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **48** December 2011 (iv) As tatement indicating the source's compliance status with any 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 compli ance plans, as required by regulations promulgated under title IV of the Act. (d) Any application form, report, or compliance certification submitted pursuant to these regulations shall contain certification by a responsible official of truth, accuracy , and completeness. This certification and any 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 Supporting Statement for th e Part**  **71 Federal Operating Permit Program Page**  **49** December 2011 **AT TACHMENT 2** 
**Febr uary**  **9, 2007**  **FEDERAL REGISTER NOTICE**

**72 FR 6233**

To be added after new

notice available