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### State Operating Permit Regulations (40 CFR part 70) **EPA Number 1587.11, OMB Control Number**  **2060 -** **0243 Change Worksheet Justification** 

**Introduction** The analysi s in this document was performed to support changes in the Title V Operating Permit Regulations (40 CFR Part 70) Information Collection Request (ICR) , OMB tracking number 2060
-0243. This update is assigned EPA tracking number ICR #1587.11

. The Part 70 Program ICR was last renewed in September 2007 and expires in April 2012. In the interim, the following changes are underway. The EPA is proceeding with the implementation of the Flexible Air Permitting Rule , and these changes are addressed in a separate ICR completed in November 2008. 1 

### This rule promotes the use of flexible air permits (FAPs) , which is a permit designed to facilitate flexible market
- responsive operations at an industrial facility while ensuring equal or greater environmental protection than conventional air permits. Through this action, the Agency anticipates cost savings to subject sources to be approximately $2.4 million annually, while permitting authorities should experience $2.3 million annual cost savings. The Agency is estimated to expend over $205,000 additional cost during the same time frame. The Prevention of Significant Deter ioration and Title V Greenhouse Gas Tailoring Rule (“Tailoring Rule” ) was finalized in May 2010. To reflect the impact of including greenhouse gases (GHGs) in title V permitting programs, the corresponding changes were made to the title V burden estimates. These changes are explained in further detail in this change worksheet.

1 Information Collection Request For Changes To The Part 70 Operating Permit Regulations, The Part 71 Operating Permit Regulations, and The Parts 51 and 52 Prevention of Significant Deterioration and Non

-Attainment New Source Review Regulations for Flexible Air Permits, November 2008.

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### The Tailoring Rule This final rule “tailors” the requirements of the Clean Air Act (CAA) permitting programs to limit which facilities will be required to obtain title V operating permits. The rule establishes a schedule that will initially focus Part 70 operating permit programs on the largest sources with the most permitting experience, the n expanding to cover the largest sources of greenhouse gases GHG s that may not have been previously covered by the CAA for other pollutants. Under Step 1, occurring from January 2011 through June 2011, only sources required to have title V permits for non
-GHG pollutants (i.e., “anyway” title V sources) will be required to address GHGs as part of their title V permitting

. During this time, no sources would be subject to title V requirements due solely to GHG emissions. Building on Step 1, Step 2 is in effect from July 2011 through June 2013. A source may be subject to title V permitting solely on the basis of its GHG emissions, provided the source exceeds the established Tailoring Rule thresholds. GHG emission sources that emit or have the potential to emit at least 100,000 tpy CO 2

### e, and also emit or have the potential to emit 100 tpy of GHGs on a mass basis will be required to obtain a title V permit if they do not already have one

.
**Changes** Information obtained for this assessment of estimated resource requirements came from the burden analysis for the Tailoring Rule. 2 

### For this rule, the EPA determined the approximate number of affected sources and the different burdens associated with each

2 Summary of Methodology and Data Used to Estimate Burden Relief and Evaluate Resource Requirements at Alternative Greenhouse Gas (GHG) Permitting Thresholds. Prepared by EPA Staff; March 2010.

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### permitting action involving GHGs . Before the current ICR expires, permitting authorities will undergo six months of Step 1 and 18 months of Step 2. The most recent title V program ICR estimates that 50 permits are completed every year for new sources. 3 

### For this analysis, it is assumed that all 50 of these typically large industrial
-type sources will be capable of potentially emitting GHG and will need to add GHG
- related requirements to the permit. The estimated burden per title V permit in the ICR represents an average of multiple pollutants; EPA estimates the addition of GHGs will add an additional 10% of the time currently estimated for a new title V permit. Ten percent is considered to be appropriate amount because for the most part, these sources will s imply need to add information concerning inventory, reporting, or monitoring of their GHG emissions, as appropriate, which they can readily do. Out of the 3,267 permit renewals conducted annually, the EPA estimates that 80% may potentially emit GHGs above the threshold due to combustion activities. 4 

### Therefore, approximately 2,614 sources will need to address GHG in the new version of the permit. For such permit renewals, the EPA assumes that the inclusion of GHGs will require add ing an additional 10% to the average time to process and issue. This equates to 99 and 220 additional burden hours for the permitting authorities and sources respectively. Revisions to title V permits will also be necessary based on the number of modifications calculated for this analysis. Revisions occurring specifically due to GHG may involve significant revisions, minor revisions, or administrative actions to operating permits. EPA estimates that this activity will require 40 hours per permit on average for permitting authorities to complete. 5 

### At any level, it is assumed that the 448 modifications involving combustion that occur annually will need to include any GHG requirements in the revision of their respective title V permits. EPA estimates that permitting authorities will spend, in

3 Information Collection Request for State Operating Permit Regulations (Renewal), EPA ICR Number 1587.07, OMB Control Number 2060

-0243, 2007. A copy of this document is available in the docket for the final Tailoring Rule. 4 The 80% estimate was obtained through a review of existing titl e V permit source categorization. 5 The Title V ICR indicates the burdens associated with revisions are as follows: 90 hours for a significant revision, 30 hours for a minor revision, and 5 hours for an administrative action. See T able 8 at 23 . W hich revision will be required for any modification that exceeds the GHG significance level threshold would be determined on a case

- by

-case basis depending on the change; therefore, EPA averages the three permitting burdens to obtain a value of 40 hours per permit
.

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### addition to the current burden to issue a title V permit revision, an additional 10% of the 40 hours needed to complete this process, or four hours per action. Sources will experience a simi lar increase in burden, adding 4 more hours to the average revision time. Permitting Authorities Based on the Tailoring Rule burden analysis, this update distinguishes between two types of sources

– industrial and commercial/residential
- with differences in associated burdens. The EPA estimates that a n industrial permit due solely to GHGs will require the same amount of time to process and issue as a conventional pollutant, or 428 hours , as shown in Table 1

. New commercial/residen tial permits will require only 5 0% of that time, or 214 hours. Table 2 identifies the average burden by activity for the permitting a uthorities. Estimates are greater than the previous ICR primarily due to the increase in affected source numbers. Twenty
-seven new commercial/residential sources and 258 residential sources are expected to require a title V permit during this time due to GHG emissions

. For an anyway source entering the title V program due to conventional pollutants , a permitting authority will spend an estimated 43 additio nal hours to account for any applicable requirements associated with GHGs, bringing the average burden to 471 hours per permit.

Sources The EPA estimates that a n industrial permit due solely to GHGs will require the same amount of time to process and issue as a conventional pollutant, or 350 hours, as shown in Table 3. New commercial/residential permits will requi re only 5 0% of that time, or 180 hours. Source burden, shown in Table 4 , is expected to increase throughout the remaining two years of this ICR. As noted for permitting authorities, 27 new commercial/residential sources are expected to require a title V permit during this time, as well as approximately 258 industrial sources. For an anyway source in the title V program due to conventional pollutants, an additional 34 hours will be spent including applicable GHG requirements,

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### bringing the average burden to 374 hours per permit. Overall, the annual burden for sources is estimated to be 4.3 million hours

.
Agency The Tailoring Rule and its supporting documents did not focus on Agency burden impacts. However, due to the increase in sources subject to title V more time will be spent processing and revising title V permit applications. Updated burden esti mates are represented in Table 5

. The total annual effort is almost 41,000 hours at a cost of $1.8 million

.

Additional Burden Due to Recent Actions Tables 6 and 7 highlight the burden impacts occurring as a result of the most recent program actions. Th e total additional burden for permitting authorities is estimated at 225,824 hours for the two
-year period, while sources will experience a combined approximate burden of 262,791 hours

. Wh ile the number of responding permitting authorities will remain the same, over the next two years there will be 285 additional sources that will respond due to GHGs. Incorporating these burden revisions into the currently approved Part 70 program ICR leads to an overal l increase of 244,307 hours annually for respondents, bringin g the overall burden to almost 5.7 million hours

. In addition, the total number of respondents will increase to an estimated1 7 ,073 annually.

### 6 **Table 1. A**

**verage Permitting A uthority**  **Burden per GHG Title V Permit**

**Activity Burden**  **Hours per Permit**  **- Industrial**  **Burden Hours**

**per Permit -**  **Commercial/ Residential**  **a** Permit Application Review 100 33 Draft Permits Preparation 150 50 Comment Period Notification 10 10 Hold Public Hearings 100 90 Interaction with EPA 20 5 Analyze Public Comments 40 20 Permits Issuance 8 6 **Total Burden 428**  **214**

aCommercial/residential permits will be simpler, so the permitting authority would take about 1/3 of the time to review the permit application and draft the permit than it would for an industrial source permit. The comment period notification and time for public hearings, however, would be about the same because of the fixed time necessary to provide notice and hold hearings. The amount of time interacting with EPA would be much less due to the relative simplicity of the permits. Analyzing public comments would take half as long as for an industrial permit because although the permits are much simpler, there could be a fair amount of public interest because of the location of the source. Permit issuance would take slightly less time than for an industrial source since most of the costs are fixed.

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**Table 2. Permitting A uthority Burden and Cost (** **An nual)** 

**Activity Number of Units**  **Hours per Unit**  **Total**

**Hours Total Cost** 

**($) b**  **An nual** 

**Hours An**  **nual Cost**

**($) Year 1**  **a Year 2**  Program Administration 112 Programs 112

programs 3500 784,000 $36,064,000 392,000 $18,032,000 Permit Preparation and Issuance c New Industrial Permit due to GHG 86 172 428 110,424 $5,079,504 55,212 $2,539,752 New Industrial Permit
- add GHG com ponent 50 50 471 47,100 $2,166,600 23,550 $1,083,300 New Commercial/Residential Permit 9 18 214 5,778 $265,788 2,889 $132,894 General Permits Administration 112 Programs 112

programs 80 17,920 $824,320 8,960 $412,160 Permit Revisions Permit Revisions
- Due to GHG 458 915 40 54,920 $2,526,320 27,460 $1,263,160 Permit Revisions
- add GHG to Current Non
- GHG Permits 448 448 4 3,584 $164,864 1,792 $82,432 Permit Revisions
- Significant 1394 1394 90 250,920 $11,542,320 125,460 $5,771,160 Permit Revisions
- Minor 6968 6968 30 418,080 $19,231,680 209,040 $9,615,840 Permit Revisions
- Adm inistrative 6968 6968 5 69,680 $3,205,280 34,840 $1,602,640 Permit Renewals Permit Renewals w/addition of GHG 2614 2614 99 517,572 $23,808,312 258,786 $11,904,156 Permit Renewals 653 653 90 117,540 $5,406,840 58,770 $2,703,420 Review General Permits 622 622 10 12,440 $572,240 6,220 $286,120 Review Monitoring and Compliance Certification Reports 16,603 16,603 15 498,090 $22,912,140 249,045 $11,456,070 Annual Enforcement Activity Reporting 112 Programs 112

programs 40 8,960 $412,160 4,480 $206,080 **Totals 2,917,008**  **$134,182,368 1,458,504**  **$67,091,184**

aYear 1 is comprised of Step 1 and six months of Step 2 under the GHG Tailoring Rule; throughout Year 2 Step 2 will be in place. bSalaries from Title V ICR adjusted to 2007 dollars using 2007 OPM General Schedule Salary Table available at: http://www.opm.gov/oca/07tables/index.asp
c Incorporating GHG information/requirements into new, revised, and renewed permits adds an additional 10% to th e current time. d New commercial/residential permits require half the time needed for new industrial permits eThe Title V ICR estimates that 3,267 permits annually undergo renewal and we estimate that 80% of these will involve combustion. Therefore, 2,614 must add GHG requirements; while 653 do not.

### 8 **Table 3 . A** 

**verage Source Burden per GHG Title V Permit** 

**Activity Burden**  **Hours per Permit**  **- Industrial**  **Burden Hours**

**per Permit -**  **Commercial/ Residential**  **a** Prepare Application 300 150 Draft Permits Interaction 40 20 Public Hearing Participation 10 10 **Total Burden 350**  **180**

aCommercial/residential permit applications will be significantly simpler than industrial source title V permit applications. However, due to their inexperience, we estimate commercial/residential sources will take half as long to complete their steps for their permit applicatio n as it will for industrial sources to complete their steps. Less interaction, again 50% less time, will be needed with permitting authorities during the permit drafting process. Finally, public hearing participation will likely require the same amount of time because of the fixed time burdens necessary to complete hearings.

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**Table 4. Source Respondent Burden and Cost (Annual)**
**Activit y**  **Number of Units**  **Hour**

**s per Unit**  **Total**

**Hours Total Cost** 

**(s) a**  **Annual**

**Hours Annual Cost** 

**($) Year 1**  **Year 2** Prepare Application Industrial Permit due to GHG 86 172 300 77,400 $11,455,200 38,700 $5,727,600 Industrial Permit
- add GHG component to Non
-GHG Permit 50 50 330 33,000 $4,884,000 16,500 $2,442,000 Commercial/Residential Permit 9 18 150 4,050 $599,400 2,025 $299,700 Draft Permit Industrial 86 172 40 10,320 $402,480 5,160 $201,240 Add GHG component to new Non
-GHG Permit 50 50 44 4,400 $171,600 2,200 $85,800 Commercial/Residential 9 18 20 540 $21,060 270 $10,530 Gap Filling Monitoring Development 54 54 40 4,320 $168,480 2,160 $84,240 Public Hearing Participation 3 4 10 70 $2,730 35 $1,365 Operate Gap Filling Monitoring 8302 8302 200 3,320,800 $129,511,200 1,660,400 $64,755,600 Prepare Monitoring Reports 16,603 16,603 80 2,656,480 $103,602,720 1,328,240 $51,801,360 Permit Revisions Significant Permit Modifications 1394 1394 80 223,040 $8,698,560 111,520 $4,349,280 Minor Permit Modifications 6968 6968 40 557,440 $21,740,160 278,720 $10,870,080 Administrative Amendments 6968 6968 8 111,488 $4,348,032 55,744 $2,174,016 Permit Revisions
- due to GHG 915 43 39,345 $1,534,455 19,673 $767,228 Permit Revisions
- add GHG to current non
-GHG permits 448 448 4 3,393 $132,321 1,696 $66,161 Permit Renewals General Permit Renewal 622 622 2 2,488 $97,032 1,244 $48,516 Permit Renewals w/addition of GHG 2614 2614 220 1,150,160 $44,856,240 575,080 $22,428,120 Permit Renewals 653 653 200 261,200 $10,186,800 130,600 $5,093,400 Other Activities 3267 3267 20 130,680 $5,096,520 65,340 $2,548,260 **Totals 8,590,614**  **$335,033,940 4,295,307**  **$167,516,970**
aYear 1 is comprised of Step 1 and six months of Step 2 under the GHG Tailoring Rule; throughout Year 2 Step 2 will be in place. bSalaries from Title V ICR adjusted to 2007 dollars using 2007 OPM General Schedule Salary Table available at: http://www.opm.gov/oca/07tables/index.asp c Incorporating GHG information/requirements into new, revised, and renewed permits adds an additional 10% to th e current time. d New commercial/residential permits require half the time needed for new industrial permits eThe Title V ICR estimates that 3,267 permits annually undergo renewal and we estimate that 80% of these will involve combusti on.

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**Table 5. Ag**  **ency Burden and Cost for the Two -** **Year Period**

**Activity Number of Units**  **Hours per Unit**  **Total**

**Hours Total Cost** 

**(s) An**  **nual**

**Hours An**  **nual Cost**

**($) Year 1**  **a Year 2**  Review Permits and Revisions New Permits b 36 60 20 1,920 $86,688 960 $43,344 Ren ewals 163 163 20 6,520 $294,378 3,260 $147,189 Permit Revisions due to GHGs c 458 915 8 10,984 $495,928 5,492 $247,964 Significant Permit Revisions 1,394 1,394 8 22,304 $1,007,026 11,152 $503,513 Min or Permit Revisions 6,968 6,968 1 13,936 $629,210 6,968 $314,605 Consult with Permitting Authority New Permits 36 60 8 768 $34,675 384 $17,338 Permit Revisions due to GHGs 115 229 8 2,752 $124,253 1,376 $62,126 Sig nificant Permit Revisions 348 348 8 5,568 $251,395 2,784 $125,698 Minor Permit Revisions 1,742 1,742 1 3,484 $157,303 1,742 $78,651 Program Oversight 112 Programs 112

Programs 50 11,200 $505,680 5,600 $252,840 Review the Annual Report 112 112 10 2,240 $101,136 1,120 $50,568 **Totals 81,676**  **$3,687,671 40,838**  **$1,843,836**

aYear 1 is comprised of Step 1 and six months of Step 2 under the GHG Tailoring Rule; throughout Year 2 Step 2 will be in place. b Review and consultation conducted on approximately 25% of permits annually cPermit revisions due to GHGs [add text for the fact these are separate?] are assumed to require the same amount of review and consultation time as significant or minor permit revisions.

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**Table 6. A dditional Permitting A** **uthority Burden and Cost For the Two -** **Year Period**
**Activity Burden**  **Hour per**  **Permit Af** 

**fected Permits Total** 

**Burden (hours)**  **Total Cost**

**($2007) b**  **Year 1 a**  **Year 2** New Permit Preparation and Issuance
- Industrial 428 86 172 110,281 5,072,941 Add GHG component to new Non
- GHG Permitb 43 50 50 4,300 $197,800 New Permit Preparation and Issuance
- Commercial/Residential c 214 9 18 5,707 $262,507 Permit Revisions
- due to GHG 40 458 915 54,900 $2,525,400 Permit Revisions
- add GHG to Current Non
- GHG Permits 4 448 448 3,584 $164,864 Permit Renewals d 9 2614 2,614 47,052 $2,164,392 **Total Ad**  **ditional Burden 225,824**  **$10,387,904**

aYear 1 is comprised of Step 1 and six months of Step 2 under the GHG Tailoring Rule; throughout Year 2 Step 2 will be in place. bSalaries from Title V ICR adjusted to 2007 dollars using 2007 OPM General Schedule Salary Table available at: http://www.opm.gov/oca/07tables/index.asp
c Incorporating GHG information/requirements into new, revised, and renewed permits adds an additional 10% to th e current time. d New commercial/residential permits require half the time needed for new industrial permits

eThe Title V ICR estimates that 3,267 permits annually undergo renewal and we estimate that 80% of these will involve combusti on.

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**Table 7. Ad**  **ditional Source Burden and Cost For the Two -**  **Year Period**
**Activity Burden**  **Hour per**  **Permit Rate per** 

**Houra Af** 

**fected Permits Total Burden**  **(hours) Total Cost** 

**($2007) b**  **Year 1 a**  **Year 2** Prepare Application
- Industrial 300 $148 86 172 77,300 $11,440,400 Prepare Application
- add GHG component to Non
- GHG Permitc 30 $148 50 50 3,000 $444,000 Prepare Application
- Commercial/Residential d 150 $148 9 18 4,000 $592,000 Draft Permit
- Industrial 40 $39 86 172 10,307 401,960 Draft Permit
- Add GHG component to new Non
- GHG Permit 4 $39 50 50 400 $15,600 Draft Permit
- Commercial/Residential 20 $39 9 18 533 $20,800 Public Hearing Participation e 10 $39 3 4 68 $2,647 Permit Revisions
- due to GHG 43 $39 458 915 59,039 $2,302,521 Permit Revisions
- add GHG to current non
- GHG permits 4 $39 448 448 3,584 $139,776 Permit Renewalsf 20 $39 2614 2,614 104,560 $4,077,840 **Total A dditional Burden**  **262,791 $19,437,544** 

aYear 1 is comprised of Step 1 and six months of Step 2 under the GHG Tailoring Rule; throughout Year 2 Step 2 will be in place. bSalaries from Title V ICR adjusted to 2007 dollars using Employment Cost Index, Table 1, Private Industry Workers, Management, profess ional, and related. Index for December 2007 relative to December 2006. Available at: http://www.bls.gov/web/echistrynaics.pdf c Incorporating GHG information/requirements into new, revised, and renewed permits adds an additional 10% burden to the current time. d New commercial/residential permits require half the time needed for new industrial permits eAmount of time required for public hearing participation remains the same for all permits, and one in 50 permits requires a hearing. f The Title V ICR estimates that 3,267 permits annually undergo renewal; assume 80% of these involve combustion and require the add ition of GHG components.