REGULATORY IMPACT ANALYSIS FOR 

THE FINAL PREVENTION OF 

SIGNIFICANT DETERIORIATION AND 

TITLE V GREENHOUSE GAS TAILORING 

RULE

Final Report

May 2010

Linda M. Chappell, PhD

U.S. Environmental Protection Agency

Office of Air Quality Planning and Standards

Air Benefits and Cost Group

109 TW Alexander Drive

Research Triangle Park, NC 27711

RTI International

3040 Cornwallis Road

Research Triangle Park, NC 27709
EPA 452/R-10-003

May 2010

Regulatory Impact Analysis for the Final Greenhouse Gas Tailoring Rule

Final Report

Linda M. Chappell, PhD

U.S. Environmental Protection Agency

Office of Air Quality Planning and Standards

Air Benefits and Cost Group

109 TW Alexander Drive

Research Triangle Park, NC 27711

U.S. Environmental Protection Agency

Office of Air Quality Planning and Standards

Health and Environmental Impacts Division

Research Triangle Park, NC
1

CONTENTS

Page

1 Executive Summary.................................................................................................................. 4

1.0 Summary.......................................................................................................................... 5

1.1 Summary of Analytical Approach for the Analysis......................................................... 9

1.2 Benefits, Cost, and Net Benefits of the Final Tailoring Rule ........................................ 16

1.3 Organization of this Report............................................................................................ 20

2 Baseline Description, Regulatory Alternatives, and Affected Entities................................... 22

3 Benefits (Regulatory Relief or Avoided Permit Burden Costs).............................................. 34

3.1 Avoided Burden Costs for Title V................................................................................. 34

3.2 Avoided Information Collection Costs Associated with the PSD Program .................. 38

4 Social Costs............................................................................................................................. 45

5 Net Benefits ............................................................................................................................ 49

6 Impacts of Regulatory Relief.................................................................................................. 53

6.1 Method for Analyzing Avoided Economic and Small Entity Impacts.......................... 53

6.1.1 Identifying Affected Sectors and Entities ........................................................... 53

6.1.2 Data Used to Characterize Affected Entities by Size.......................................... 54

6.2 Developing Economic and Small Entity Regulatory Relief Impact Measures.............. 68

6.3 Implementing the Sales Test to Measure Impacts on Industrial, Commercial, and 

Multifamily Residential Sources ................................................................................... 68

6.4 Economic Relief to Permitting Authorities.................................................................... 70

7 Statutory and Executive Order Reviews................................................................................. 87

7.1 Executive Order 12866 - Regulatory Planning and Review.......................................... 87

7.2 Paperwork Reduction Act.............................................................................................. 87

7.3 Regulatory Flexibility Act ............................................................................................. 88

7.4 Unfunded Mandates Reform Act................................................................................... 89

7.5 Executive Order 13132 – Federalism ............................................................................ 89

7.6 Executive Order 13175 - Consultation and Coordination with Indian Tribal 

Governments.................................................................................................................. 90

7.7 Executive Order 13045 - Protection of Children from Environmental Health and 

Safety Risks ................................................................................................................... 90

7.8 Executive Order 13211 - Actions That Significantly Affect Energy Supply, 

Distribution, or Use........................................................................................................ 91
2

7.9 National Technology Transfer and Advancement Act .................................................. 91

7.10 Executive Order 12898 – Federal Actions to Address Environmental Justice in 

Minority Populations and Low-Income Populations..................................................... 91

7.11 Congressional Review Act............................................................................................. 92

8 Limitations and Uncertainties................................................................................................. 93

9 References............................................................................................................................... 99

Attachment A: Source Categories Affected by the Rule with Industry Detail

Attachment B: Technical Support Document for Greenhouse Gas Emissions Thresholds 

Evaluation

Attachment C: Summary of Methodology and Data Used to Estimate Burden Relief and 

Evaluate Resource Requirements at Alternative Greenhouse Gas (GHG) 

Permitting Thresholds
3

List of Tables

Page

1.0 Time Periods and Regulatory Alternatives Analyzed in the RIA..................................... 12

1.1 Annual Net Benefits for GHG Tailoring Rule Regulatory Alternatives........................... 18

1.2 Net Benefits for the Final Rule and Regulatory Alternatives for Steps 1 and 2 of the 

Phase-In Period ................................................................................................................. 19

1.3 Net Benefits of the Final Rule and Step 3 Regulatory Alternatives................................. 20

2.0 Phase-In Steps for Large Sources for the Final GHG Tailoring Rule .............................. 22

2.1 Baseline Sources Subject to Statutory Permit Requirements ........................................... 29

2.2 Qualitative Description of Benefits and Cost of the Tailoring Rule................................. 31

2.3 Estimated Number of Affected Sources Experiencing Regulatory Relief for Final 

Rule and Regulatory Alternatives..................................................................................... 32

3.0 Annual Title V Regulatory Relief (Avoided Cost) Estimates for Affected Sources 

of GHG and Permitting Authorities at Alternative Thresholds........................................ 36

3-1 Steps 1 and 2 Title V Regulatory Relief (Avoided Cost) Estimates for Affected 

Sources of GHG and Permitting Authorities at Alternative Thresholds........................... 39

3.2 Annual PSD Regulatory Relief (Avoided Costs) for Sources of GHG and 

Permitting Authorities at Alternative Thresholds............................................................. 40

3.3 Step 1 and 2 PSD Regulatory Relief (Avoided Costs) for Sources of GHG and 

Permitting Authorities at Alternative Thresholds............................................................. 43

3.4 Benefits of the Final Rule and Step 3 Regulatory Alternatives........................................ 44

5.1 Annual Net Benefits for GHG Tailoring Rule Regulatory Alternatives........................... 50

5.2 Net Benefits of the Final GHG Tailoring Rule and Regulatory Alternatives................... 51

5.3 Net Benefits of the Final Rule and Step 3 Regulatory Alternatives................................. 52

6.0 Number of Firms by Industry and Enterprise Size: 2002 ................................................. 55

6.1 Number of Establishments by Affected Industry and Enterprise Size: 2002 .................. 57

6.2 Number of Employees by Affected Industry and Enterprise Size: 2002......................... 59

6.3 Receipts by Industry and Enterprise Size: 2002 (in millions of 2007$).......................... 61

6.4 Number of Firms by Affected Industry and Enterprise Size in Commercial Sectors: 

2002................................................................................................................................... 63

6.5 Number of Establishments by Affected Industry and Enterprise Size: 2002 .................. 64

6.6 Number of Employees by Affected Industry and Commercial Enterprise Size: 

2002................................................................................................................................... 66

6.7 Receipts by Affected Industry and Enterprise Size: 2002 (Millions of 2007 $).............. 67

6.8 Avoided Title V Costs to Sales for Small Industrial Sources of GHG Emissions ........... 72

6.9 Avoided Costs to Sales for Small Modifying Industrial GHG PSD Emission 

Sources.............................................................................................................................. 74

6.10 Avoided Costs to Sales for Small New PSD Industrial GHG Sources............................. 76

6-11 Avoided Title V Permitting Costs to Sales for Permit Revisions Due to GHG ............... 78

6.12 Title V Avoided Costs for Small New Commercial Sources of GHG Emissions 

Compared to Annual Sales Revenue................................................................................. 81

6.13 Avoided Costs for Small Modifying Commercial PSD GHG Emission Sources 

Compared to Annual Sales Revenue................................................................................. 83

6.14 Avoided Costs to Small PSD New Commercial GHG Emission Sources........................ 85
4

A-1 Title V Sources Expected to Experience Regulatory Relief at Alternative Threshold 

Levels by Industry Category........................................................................................... 100

A-2 New PSD Sources Expected to Experience Regulatory Relief at Alternative 

Threshold Levels by Industry Category.......................................................................... 102

List of Figures

Page

1.0. Alternative States of Regulation Relating to the GHG Tailoring Rule ............................ 11
5

Section 1

Executive Summary

1.0 Summary

This Regulatory Impact Analysis (RIA) examines the benefits, costs, and economic 

impacts of the Final Prevention of Significant Deterioration and Title V Greenhouse Gas 

Tailoring Rule for affected entities and society as a whole. The tailoring rule lifts, for a period of 

beginning January 2, 2011 through April 30, 2016 (referred to as phase-in period), the burden to 

obtain a title V operating permit required by the Clean Air Act (CAA or Act) for many small 

existing sources of greenhouse gas (GHG) and the burden of Prevention of Significant 

Deterioration (PSD) requirements for small new or modifying sources of GHG. Thus, this rule 

may be viewed as providing regulatory relief rather than regulatory requirements for these 

smaller GHG sources for a period of at least the phase-in period. For larger sources of GHG, 

there are no direct economic burdens or costs as a result of this rule, because requirements to 

obtain a title V operating permit or to adhere to PSD requirements of the CAA are already

mandated by the Act and by existing rules and are not imposed as a result of this rulemaking. 

In this final rule, the Environmental Protection Agency (EPA) is relieving overwhelming 

permitting burdens that would, in the absence of this rule, fall on permitting authorities and 

sources. We accomplish this by tailoring the applicability criteria that determine which GHG 

emission sources become subject to the PSD and title V programs of the CAA. In particular, 

EPA is establishing with this rulemaking a phase-in approach for PSD and title V applicability, 

and is establishing the first two steps of the phase-in for the large emitters of GHGs. We also 

commit to certain follow-up actions regarding future steps beyond the first two, discussed in 

more detail later.

For the first step of this Tailoring Rule, which will begin on January 2, 2011, PSD or title 

V requirements will apply to sources’ GHG emissions only if the sources are subject to PSD or 

title V anyway due to their non-GHG conventional pollutants. Therefore, EPA will not require 

sources or modifications to evaluate whether they are subject to PSD or title V requirements 

solely on account of their GHG emissions. Specifically, for PSD, Step 1 requires that as of 

January 2, 2011, the applicable requirements of PSD, most notably, the best available control 

technology (BACT) requirement, will apply to projects that increase net GHG emissions by at 

least 75,000 tons per year (tpy) carbon dioxide equivalent (CO2e), but only if the project also 
6

significantly increases emissions of at least one non-GHG pollutant. For the title V program, 

only existing sources with, or new sources obtaining, title V permits for non-GHG pollutants will 

be required to address GHGs during this first step. This first step of the tailoring rule is referred 

to as Step 1 or ‘anyway’ threshold throughout this RIA.

The second step of the tailoring rule, that begins on July 1, 2011, will phase-in additional 

large sources of GHG emissions. New sources as well as existing sources not already subject to 

title V that emit, or have the potential to emit, at least 100,000 tpy CO2e will become subject to 

the PSD and title V requirements. In addition, sources that emit or have the potential to emit at 

least 100,000 tpy CO2e and that undertake a modification that increases net emissions of GHGs 

by at least 75,000 tpy CO2e will also be subject to PSD requirements. For both steps, we also 

note that if sources or modifications exceed these CO2e-adjusted GHG triggers, they are not 

covered by permitting requirements unless their GHG emissions also exceed the corresponding 

mass-based triggers (i.e., unadjusted for CO2e.) This second step of the phase-in period is 

referred to as Step 2 or 100,000 tpy CO2e threshold throughout this report. Although the 

thresholds established by the tailoring rule are levels set that apply to sources at or above the 

threshold, this RIA examine the sources obtaining regulatory relief. By definition the sources 

obtaining regulatory relief are those sources with GHG potential to emit emissions below a 

particular threshold

EPA believes that the costs to the sources and the administrative burdens to the 

permitting authorities of PSD and title V permitting will be manageable at the levels in these 

initial two steps, and that it would be administratively infeasible to subject additional sources to 

PSD and title V requirements at those times. However, we also intend to issue a supplemental 

notice of proposed rulemaking (SNPR) in 2011, in which we will propose or solicit comment on 

a third step of the phase-in that would include more sources, beginning by July 1, 2013. In the 

same rulemaking, we may propose or solicit comment on a permanent exclusion from permitting 

for some category of sources. We are establishing an enforceable commitment that we will 

complete this rulemaking by July 1, 2012, which will allow for 1 year's notice before step 3 

would take effect. In addition, we commit to explore streamlining techniques that may well 

make the permitting programs much more efficient to administer for GHGs, and that therefore 

may allow their expansion to smaller sources. We expect that the initial streamlining techniques 

will take several years to develop and implement. 
7

We are also including in this action a rule that no source with emissions below 50,000 tpy

CO2e, and no modification resulting in net GHG increases of less than 50,000 tpy CO2e, will be 

subject to PSD or title V permitting before at least, April 30, 2016. This is because we are able 

to conclude at the present time that the administrative burdens that would accompany permitting 

sources below this level will be so great that even the streamlining actions that EPA may be able 

to develop and implement in the next several years, and even with the increases in permitting 

resources that we can reasonably expect the permitting authorities to acquire, it will be 

impossible to administer the permit programs for these sources until at least 2016. 

Further, we are establishing an enforceable commitment that we will (i) complete a study

by April 30, 2015, to evaluate the status of PSD and title V permitting for GHG-emitting 

sources, including progress in developing streamlining techniques; and (ii) complete further 

rulemaking based on that study by April 30, 2016, to address the permitting of smaller sources. 

That rulemaking may also consider additional permanent exclusions based on the “absurd 

results” doctrine, where applicable. 

This tailoring rulemaking is necessary because without it, PSD and title V would apply to 

all stationary sources that emit or have the potential to emit more than 100 or 250 tpy of GHGs 

beginning on January 2, 2011. This is the date when EPA’s recently promulgated Light Duty 

Vehicle Rule (LDVR) 1takes effect, imposing control requirements for the first time on carbon 

dioxide (CO2) and other GHGs. If this January 2, 2011 date were to pass without this tailoring 

rule being in effect, PSD and title V requirements would apply at the 100/250 tpy CO2e potential 

to emit (PTE) applicability levels provided under a literal reading of the CAA as of that date. 

From that point forward, a source owner proposing to construct any new major source that emits 

at or higher than the applicability levels (and which therefore may be referred to as a “major” 

source) or modify any existing major source in a way that would increase GHG emissions would 

need to obtain a permit under the PSD program that addresses these emissions before 

construction or modification could begin. Similarly, title V would apply to a new or existing 

source exceeding the 100 tpy applicability level in the Act, if the source did not already have a 

title V permit. 

 

1 EPA–HQ–OAR–2009–0472; NHTSA-2010-0059 RIN 2060-AP58; RIN 2127-AK50. April 1, 2010 Light-Duty 

Vehicle Greenhouse Gas Emission Standards and Corporate Average Fuel Economy Standards; Final Rule 

http://www.epa.gov/otaq/climate/regulations/ldv-ghg-final-rule.pdf
8

Under these circumstances, many small sources would be burdened by the costs of the 

individualized PSD control technology requirements and permit applications that the PSD 

provisions, absent streamlining, require. Additionally, state and local permitting authorities 

would be burdened by the extraordinary number of these permit applications, which are orders of 

magnitude greater than the current inventory of permits and would vastly exceed the current 

administrative resources of the permitting authorities. Permit gridlock would result with the 

permitting authorities able to issue only a tiny fraction of the permits requested. 

This rulemaking provides permitting thresholds for sources of GHG exceeding levels 

contained in the CAA, and these levels are phased in steps based on legal considerations of 

absurd results and administrative necessity discussed in the preamble to this rule. In the phase-in 

period following promulgation of this rule, we estimate that, compared to baseline estimates that 

do not include the effects of this rule, over six million sources of GHG emissions will be allowed 

to operate without a title V operating permit and tens of thousands of new sources or modifying 

sources per year will not be subject to PSD requirements for GHG. The emissions from these 

sources amount to approximately 11 percent of all GHG emissions from stationary sources 

(100,000 CO2e tpy threshold) equating to approximately 630 million short tons CO2e, but 

represent 95 percent of the total number of stationary sources. For this large number of smaller 

GHG sources, this rule alleviates the regulatory burden associated with obtaining an operating or 

PSD permit or complying with PSD BACT requirements. Therefore, this final action may be 

considered beneficial to these small sources as it provides relief from regulation that would 

otherwise be required.

Within this RIA we are providing an illustrative monetary estimate of statutory

permitting requirements to show the magnitude of the savings that hypothetically result from this 

rulemaking. While we believe it is impossible to implement these permit requirements by 

January 2, 2011 for the reasons laid out in the preamble, it is useful to understand the scale of 

what the burden may have been. For sake of simplicity, within this document we refer to this 

illustrative monetary estimate as the monetized benefits of the regulatory relief presented by this 

rulemaking or regulatory relief benefits for brevity. We estimate that the regulatory relief 

benefits from this rule amount to $193.6 billion for the final rule Steps 1 and 2 of the phase-in 

period (January 2, 2011 through July 1, 2013). There will be some costs to society during this 

time from the potential loss of GHG emission reductions from small sources that could occur 
9

during the Steps 1 and 2 phase-in period. We are not able to quantify or monetize these potential 

foregone emission reductions resulting from this final rule.

1.1 Summary of Analytical Approach for the Analysis

Our analysis of the GHG tailoring rule includes several key elements including:

 specification of the baseline that requires title V and PSD permitting statutory

thresholds of 100/250 tpy CO2e potential to emit (PTE),

 development of alternative regulatory relief thresholds including those authorized

by this final rule, 

 estimation of sources affected by alternative regulatory relief thresholds, 

 estimation of the benefits of this rule in terms of permitting burden costs avoided,

 qualitative discussion of social costs or potential GHG emission reductions 

foregone due to this rule, and 

 estimation of the economic impacts of this final rule. 

A brief synopsis of these analytical aspects of the final rule follows.

Analytical Baseline

The baseline for this rulemaking is a state of regulation in which the statutory thresholds 

of 100/250 tpy CO2e apply for title V sources and new or modifying PSD sources beginning 

January 2, 2011 absent actions taken in the final tailoring rule. Figure 1.0 below depicts this 

analytical baseline in which GHG permitting is statutorily required by the CAA. Within this 

framework, there are two general possibilities – ‘no action’ or ‘regulatory relief action’ taken by 

EPA. Under the ‘no action’ case baseline, statutory limits become effective and permitting 

authorities are overwhelmed with permit applications. Millions of new sources in total many of 

which have not been regulated under the Act would be required to obtain title V sources and tens 

of thousands of these sources will face PSD permitting annually. In contrast, the EPA may take 

action as it has in this final rule to provide ‘regulatory relief’. As described, the ‘no action’ case 

is the analytical baseline for this RIA. All alternatives analyzed in this RIA show the level of 

regulatory relief in comparison to a baseline in which statutory CAA thresholds of 100/250 tpy

CO2e are required.

Regulatory Alternatives, Affected Sources, and Avoided Permitting Cost Estimates

All regulatory alternatives evaluated in this RIA, except the ‘no action’ alternative, 

represent regulatory relief possibilities that establish title V permitting thresholds and PSD 
10

permitting thresholds and significance levels above the statutory 100/250 tpy CO2e requirements. 

Due to the phase-in nature of this rule, EPA analyzes the benefits and costs of the tailoring rule 

for three different time periods. We analyze the net benefits of the rule annually to allow for a 

comparison of the final rule Steps 1 and 2 to be made with regulatory alternatives. We also 

evaluate the net benefits of the rule for the 21⁄2 years period of Steps 1 and 2 of the phase-in 

period (January 2, 2011 through July 1, 2013) , and for the approximate five year period of Step 

1, 2, and 3 of the phase-in period January 2, 2011 through April 30, 2016. Table 1.0 shows the 

final rule and regulatory alternatives analyzed in this RIA for these differing time periods of the 

phase-in.

The benefits of this rule are the regulatory relief in the form of avoided permitting 

burdened cost for smaller sources of GHG and permitting authorities. Avoided permitting costs 

to these smaller GHG sources and permitting authorities are calculated by estimating the number 

of sources and related permits avoided as a result of this rule. We then place a dollar value on

these avoided permits by estimating the burden cost per permit. The product of the avoided 

permits and the per permit costs represents the regulatory relief for this rule. Thus the annual 

regulatory relief for the rule is equal to the number of annual sources (number of permits) above 

statutory thresholds of 100/250 tpy and below final rule thresholds multiplied by per permit costs 

for sources and permitting authorities, respectively. We use these annual estimates to calculate 

multiple year regulatory relief for Steps 1 and 2 of the phase-in and for the five years beginning 

January 2, 2011. Estimates of sources afforded regulatory relief under the alternative regulatory

thresholds are based upon an analysis completed by EPA that is included as Attachment B 

Technical Support Document for Greenhouse Gas Emissions Threshold Evaluation of this report. 

This analysis supports EPA's assessment of the administrative burden created by adding GHGs 

to the PSD and title V programs. It was necessary to develop information on the number of 

affected facilities at both the current permitting major source thresholds (100 tons per year for 

title V and 100 or 250 tons per year for PSD depending on the source category classification) and 

at alternative higher thresholds in existing PSD and title V permitting programs. An affected 

facility would be one who's annual emissions of GHG equal or exceed the major source 

threshold being evaluated. The number of sources allowed regulatory relief by this rule 

represents the difference in the number of sources at the baseline 100/250 tpy CO2e PTE 

threshold and at the higher regulatory alternative thresholds.
11

Figure 1.0. Alternative States of Regulation Relating to the GHG Tailoring Rule

GHG 

Permitting 

Triggered

No 

Tailoring 

Rule

Tailoring 

Rule

No Action 

Case

Baseline 

*Statutory

limits become 

effective

*Permitting 

authorities 

overwhelmed 

with permit 

applications, 

millions of 

new sources 

required to 

obtain permits

Action Taken

With Permit 

Trigger

*RIA analyzed 

regulatory

alternatives

*Significant 

reduction in 

facilities required 

to obtain permit 

and permitting 

authority burdens

*Limited foregone 

GHG emission 

reductions
12

Table 1.0 Time Periods and Regulatory Alternatives Analyzed in the RIA

Time Period of Analysis Regulatory Alternatives Thresholds 

Analyzed for Each Time Period1

Annual 1. Anyway

2. 100,000 tpy CO2e

3. 50,000 tpy CO2e

4. 25,000 tpy CO2e

2.5-Year

(Jan. 2, 2011- July 1, 2013)

Corresponds to Steps 1 and 

2 of the Phase-In

Alternatives assuming threshold remain in effect for the entire 21⁄2 

years of the Step 1 and 2 phase-in period):

1. 25,000 tpy CO2e (25,000 tpy CO2e significance level)

2. 50,000 tpy CO2e (50,000 tpy CO2e significance level)

3. 100,000 tpy CO2e

4. Anyway

Other alternatives involving thresholds that change during the 

phase-in period are:

5. Step 1 Anyway for 6 months/ Step 2 100,000 tpy CO2e for 2 

years

6. Step 1 Anyway threshold for 6 months / Step 2 50,000 tpy CO2e

for 2 years

7. Step1 Anyway threshold for 6 months/ Step 2 25,000 tpy CO2e

for 2 years

5-year

(Five years beginning 

January 2, 2011)

Corresponds to Steps 1-3 

of the Phase-In

1. Step 1 Anyway for 6 months/ Step2 100,000 tpy CO2e for 2 

years/ Step 3 100,000 tpy CO2e for 21⁄2 years

2. Step 1 Anyway for 6 months/ Step 2 100,000 tpy CO2e for 2 

years/ Step 3 50,000 tpy CO2e for 21⁄2 years

1 Regulatory relief relates to those sources with the potential to emit annual emissions below the threshold levels. 

Threshold 100,000 tpy CO2e has significance level of 75,000 tpy CO2e. Threshold 50,000 tpy CO2e has significance 

level of 50,000 tpy CO2e, and threshold 25,000 tpy CO2e has significance level of 25,000 tpy CO2e

Regulatory relief or avoided permit burden estimates are based upon permitting cost

estimates developed by EPA and discussed extensively in Attachment C Summary of 

Methodology and Data Used to Estimate Burden Relief and Evaluate Resource Requirements at 

Alternative Greenhouse Gas Permitting Thresholds.. EPA conducted an assessment of the 

estimated resource requirements for sources to obtain title V operating permits, for new and 

modifying sources to obtain PSD permits, and for permitting authorities to include GHG in 

permit actions at several possible major source permitting thresholds. EPA developed the burden 

reduction and costs savings for permitting authorities and sources as a result of requiring the 

inclusion of GHG in the title V and PSD permitting programs at thresholds greater than the 

current statutory requirements. Time and costs associated with permit activities are derived from 

existing Information Collection Requests (ICRs) for the title V and PSD programs. Regulatory
13

relief avoided cost estimates do not include the costs for new and modifying PSD sources to 

comply with BACT requirements due to lack of sufficient data to estimate the BACT 

requirements and associated costs.

We discuss the costs of this rule in terms of foregone environmental benefits qualitatively

in this report. There will be some costs to society during this phase-in period from the potential 

loss of GHG emission reductions from small sources that could occur during the Steps 1, 2, and 

3. We are not able to quantify or monetize these potential foregone emission reductions resulting 

from this final rule. We also provide in this RIA an estimate of the economic impact of the

regulatory relief to affected sources by developing avoided-cost-to-sales ratios for the affected 

sources by comparing avoided permitting costs to average industry sales revenue or average 

revenue by firm size. 

Limitations and Uncertainties of the Analysis

The benefits, costs and economic impacts estimated in this RIA are subject to limitations 

and uncertainties. The benefits of this rule are the regulatory relief provided to small sources of 

GHG and permitting authorities. Regulatory relief estimates are provided for the final rule Steps 

1, 2 and 3 on an annual basis as well as for the full phase-in period. The benefits or avoided 

permitting costs are based upon the best data available currently regarding sources affected and 

burden cost estimates but are subject to uncertainties. 

Benefit Estimate Limitations and Uncertainties 

Uncertainties exist in the affected source counts at different thresholds used to estimate 

regulatory relief due to the absence of a comprehensive data set of facility-level GHG emissions 

across all sectors on which to base the number of facilities subject to title V and PSD permitting 

at alternative regulatory thresholds. These affected source counts are multiplied by the permit 

burden cost estimates to derive the benefit (regulatory relief) estimates for the rule. Although 

there are different levels of uncertainty in our facility level estimates across sectors, we do 

believe that the data are sufficiently robust to use in the aggregate to assess national permitting 

level impacts. The threshold analysis also conservatively assumes that no GHG PTE limits are 

in place for any of the affected sources. Some sources may use PTE limits to avoid being 

classified as major, which would reduce burden. The number of PTE limits is uncertain. We 

assume there will be a limited number in the immediate stages of GHG permitting for affected 

sources, but this assumption is subject to some uncertainty. 
14

There is also significant uncertainty in both our modification rate for newly major GHG 

sources and in our estimate of modification activity at existing major sources that will become 

subject to PSD review for GHG emission increases. The general uncertainty results from 

inherent uncertainty in predicting not only how many major sources will elect to undergo 

physical or operational changes in any given year, but also which of those changes would result 

in GHG emissions increases that would exceed a proposed GHG significance level. First, 

information is not available across sectors and source categories on the types and numbers of 

specific physical and operational changes that would result in GHG emissions increases in 

amounts that can be estimated and that therefore can be compared to various GHG emissions 

significance levels. Second, there is uncertainty in how many project modifications will occur 

within any given year because decisions on these projects are driven by facility- and sector-based 

growth patterns and business planning decisions. Lastly, some source categories and units that 

emit GHGs have not previously been subject to any type of permitting or reporting requirements; 

as a result, for these sources, there is very little historical record for use in estimating the number 

and types of projects that would occur at these sources and, in turn, establish an appropriate 

significance level for GHGs. 

The permit burden estimates that are multiplied by the source counts to derive the 

benefits of the rule are also subject to uncertainty. The primary reference sources for our 

estimate of burden hours and costs for permitting GHGs are the most recent ICRs for the PSD 

and title V programs. There a number of uncertainties introduced in using these references for 

costing GHG permitting activities. First, we are assuming that the average, conventional 

pollutant per-permit costs will be similar for GHGs. We do recognize the likelihood that 

residential and commercial permits would be simpler and have a lower per-permit burden than 

traditional industrial sources, and have made adjustments for this: however, for industrial sources 

we assume per-permit costs on par with what are estimated in the latest ICRs for PSD and title V 

programs. There is uncertainty in applying these average ICR-based costs to GHG permitting, 

even for industrial sources, because the best source of this cost information is permitting 

experience and there is no historical track record for permitting these GHG sources and thus any

cost efficiencies that have been realized over the years for conventional pollutant permitting, and 

thus reflected in the current ICRs, may not be initially realized for GHG permitting. 
15

As mentioned above, in our burden scenario analyses we do discount the ICR-based perpermit costs for residential and commercial sources to reflect what we believe will generally be 

simpler permits, involving primarily uniform combustion type equipment. For PSD we discount 

the per-permit cost by 30%, and for title V we discount the per-permit cost by 50%. There is 

significant uncertainty in these estimated discounts since we have no track record for permitting 

these smaller commercial and residential sources. However, we do believe that, based solely on 

the type and uniformity of the GHG emission units that would be subject to permitting at these 

facilities under lower GHG threshold scenarios, that average per-permit costs would be less than 

those currently experienced by more complex industrial facilities, with numerous emission units, 

for currently regulated pollutants. 

Current avoided permitting cost or regulatory relief estimates also do not include the 

avoided costs to comply with PSD BACT requirements due to lack of available data. This 

omission will tend to reduce the amount of regulatory relief that smaller sources of GHG will 

experience during the phase-in period. In addition to the avoided BACT costs that we are unable 

to quantify, there are likely general economic costs associated with requiring permitting for these 

smaller sources of GHG. Numerous public comments on the proposed rule spoke to the 

economic burden permitting would place on sources above the actual costs to obtain a permit. 

These costs might include delays or impediments to entering a new market or to expand existing 

facilities to accommodate increased demand for products or services. These avoided costs might 

be viewed as additional costs of doing business or barriers to entry for these smaller sources of 

GHG. The avoided economic costs of these possible additional costs or barriers to doing 

business have not been considered in the regulatory relief estimates provided for this final rule

due to lack of sufficient information about these potential impacts. If such avoided cost 

estimates were available, these estimates would tend to increase the regulatory relief burden 

reported for the final rule. 

For the phase-in period regulatory relief multiyear estimates, we assume that the annual 

estimates are representative for each year of the phase-in period. This presumes that permitting 

activity would be constant over time. It is quite possible that permit activity for these smaller 

sources may grow over time with economic growth in the general economy and will likely vary

from year to year due to differences in business activity. However, we do not have sufficient 

information about these year to year variations nor expected growth in permitting to develop 
16

more precise estimates. Given the uncertainty in the annual relief estimates and the short time 

frame analyzed (five years), we feel it reasonable to not consider these potential yearly 

fluctuations for the phase-in period. Consideration of growth in permits over time would tend to 

increase the regulatory relief estimates reported for the final rule. 

In a similar manner, we do not discount the phase-in regulatory relief to the present in 

this final report. Since the analytical time period evaluated varies from annual to five years, we 

feel this is a reasonable approach. Discounting the regulatory relief estimates to present values 

would tend to lower the total present value amount of regulatory relief reported. 

Social Cost Limitations and Uncertainties 

The social costs of this rule are the foregone environmental benefits that might occur 

during the phase-in period absent this rulemaking. This subject is discussed in Section 4 of the 

RIA. We are unable to estimate the PSD BACT requirements that would likely occur for the 

smaller sources of GHG at this time. Because BACT is a case-by-case decision and evolves over 

time, because we do not at this time have historical experience with the available controls for 

small-source GHG emissions, and because of the inherent uncertainty in describing the types of 

sources that would have triggered BACT absent this rule, we cannot quantify the emission 

reductions that might be feasible or the associated pollution control costs. For this reason, the 

social costs of this rule are discussed qualitatively in this RIA.

Economic Impact Limitations and Uncertainties

As previously discussed there is uncertainty in the estimates of sources affected by this 

final rule and the permitting burden costs used to estimate the benefits (regulatory relief) of this 

rule. These uncertainties also affect the economic impact analysis conducted. In the economic 

impact analysis, we compare the avoided permit burden cost estimates to average industry

revenues in order to gauge the magnitude of regulatory relief for affected sources. We used 

average industry revenue, and average revenue estimates by firm size to estimate avoided-costto-sales ratios due to lack of data specific to the sources actually obtaining regulatory relief. The 

actual benefits to individual firms affected by this rule may differ from industry averages.

1.2 Benefits, Cost, and Net Benefits of the Final Tailoring Rule

In the RIA, we estimated the benefits, costs and net benefits of the final rule. This 

rulemaking provides regulatory relief for a phase-in period of approximately 5 years to smaller 

sources of GHG by phasing in the statutory permitting threshold at levels above statutory
17

requirements. This final rule establishes thresholds and PSD significance levels for Steps 1 and 

2 of the phase-in period (the 21⁄2 year period between January 2, 2011 and July 1, 2013), commits 

to considering a further Step 3, and indicates floor title V and PSD threshold levels from July 1, 

2013 through April 30, 2016. While the EPA commits to undertake a rulemaking for a further

Step 3, the ultimate outcome for sources of GHG from this additional rulemaking is unknown at 

this time. Annual estimates for the final rule Steps 1 and 2 and regulatory alternatives are 

presented in Table 1.1. As Table 1.1 indicates, the annual net benefits associated with the final 

rule Step 1 are $77,530.2 million +B-C and for Step 2 are $77,416.2 +B-C million, where B 

denotes the unquantified benefits and C the quantified costs of this final rule. These unquantified 

benefits and costs are discussed in more detail in the preceding limitations and uncertainties 

section of this executive summary. Table 1.2 shows the final rule Steps 1 and 2 with regulatory

alternatives for the two and one-half year phase-in period January 2, 2011 through July 1, 2013. 

The net benefits of the final rule for Steps 1 and 2 are $193,597.5 + B - C million for the two and 

one-half year period. Finally, Table 1.3 presents the final rule net benefits with two alternatives 

for Step 3, one in which Step 3 remains at the Step 2 100,000 tpy CO2e level and one in which 

Step 3 becomes the minimum threshold of at least 50,000 tpy CO2e previously discussed. These 

alternatives for Step 3 bound the net benefit estimates for the entire phase in period. If Step 3 

remains at the Step 2 level, net benefits for the five year period are $387,153.4+B-C million. 

This net benefit estimate becomes $386,724.1 +B-C million if Step 3 becomes the minimum 

level of 50,000 tpy threshold for the five year phase-in period. Given the short time frame of the 

impact of this final rule, we did not consider the time value of money or discount the benefit and 

cost estimates provided in this report to present values, rather we assume these benefit and cost 

estimates are occurring currently. All dollar estimates shown are based upon 2007$. 
18

Table 1.1 Annual Net Benefits for GHG Tailoring Rule Regulatory Alternatives

Annual Benefits and Costs for Regulatory Alternatives (millions of 2007$)

Final Rule Step 1 Final Rule Step 2

Anyway 100,000 tpy CO2e 50,000 tpy CO2e 25,000 tpy CO2e

Benefits - Regulatory Relief

Sources

 Title V1$49,457.3 $49,447.4 $49,403.8 $49,334.2

 PSD2$5,488.8 $5,411.2 $5,326.0 $4,707.6

Total Source Regulatory Relief $54,946.1 $54,858.6 $54,729.8 $54,041.8

Permitting Authority

 Title V1$21,077.6 $21,072.4 $21,052.8 $21,014.9

 PSD2$1,506.5 $1,485.2 $1,461.8 $1,291.7

Total Permitting Authority $22,584.1 $22,557.6 $22,514.6 $22,306.6

Total Regulatory Relief $77,530.2+B $77,416.2+B $77,244.4+B $76,348.4+B

Costs - Foregone GHG Emission Reductions

 Title V & PSD C C C C

Net Benefits3$77,530.2+B-C $77,416.2+B-C $77,244.4+B-C $76,348.4+B-C

Benefits relate to regulatory relief for sources with annual potential to emit levels below the thresholds shown.

B - unquantified benefits of the rule include regulatory relief from BACT requirements for PSD sources

C - unquantified social costs of tailoring rule represents economic value of foregone environmental benefits (possible GHG emission 

reductions) during Step 1 and 2 of the phase in period. Potential foregone GHG emission reductions during the phase-in period are not 

known at this time. See Section 4 of the RIA for a qualitative discussion of the social costs of the rule.

1Reflects estimates of regulatory relief or avoided permit burden costs for title V GHG sources and permitting authorities.

2 Shows estimates of regulatory relief or avoided permit burden costs for GHG PSD sources and permitting authorities.

3 Totals may not sum due to rounding.
19

Table 1.2. Net Benefits for the Final Rule and Regulatory Alternatives for Steps 1 and 2 of the Phase-In Period

Benefits and Cost s for Step 1 and 2 Phase-In Period (January 2, 2011- July 1, 2013)

For Regulatory Alternatives (millions of 2007$)

Anyway3

100,000 tpy 

CO2e350,000 tpy CO2e3

25,000 tpy 

CO2e3

Anyway/ 50,000 

tpy CO2e4

Anyway/25,000 

tpy CO2e5 Final Rule6

Benefits - Regulatory Relief

Sources

 Title V1$123,643.3 $123,618.5 $123,509.5 $123,335.5 $123,536.3 $123,397.1 $123,623.5

 PSD2$13,722.0 $13,528.0 $13,315.0 $11,769.0 $13,396.4 $12,159.6 $13,566.8

Total Source Regulatory Relief $137,365.3 $137,146.5 $136,824.5 $135,104.5 $136,932.8 $135,556.6 $137,190.3

Permitting Authority

 Title V1$52,694.1 $52,681 $52,631.9 $52,537.3 $52,644.3 $52,568.7 $52,683.6

 PSD2$3,766.3 $3,713.0 $3,654.5 $3,229.3 $3,676.8 $3,336.7 $3,723.6

Total Permitting Authority $56,460.4 $56,393.9 $56,286.3 $55,766.7 $56,321.1 $55,905.4 $56,407.2

Total Regulatory Relief $193,825.6+B $193,540.4+B $193,110.9+B $190,871.1+B $193,253.9+B $191,462.0+B $193,597.5+B

Costs - Foregone GHG Emission 

Reductions

 Title V & PSD C C C C C C C

Net Benefits $193,825.6+B-C $193,540.4+B-C $193,110.9+B-C $190,871.1+B-C $193,253.9+B-C $191,462.0+B-C $193,597.5+B-C

Benefits represent regulatory relief for those sources with the annual potential to emit less than the threshold shown. 

B - unquantified benefits of the rule include regulatory relief from BACT requirements for PSD sources

C - unquantified social costs of tailoring rule represents economic value of foregone environmental benefits 

(potential GHG emission reductions) during Step 1 and 2 of the phase in period. Foregone GHG emission reductions are not known at this time. 

See Section 4 of the RIA for a qualitative discussion of the social costs of the rule.

1Reflects estimates of regulatory relief or avoided permit burden costs for title V GHG sources and permitting authorities.

2 Shows estimates of regulatory relief or avoided permit burden costs for GHG PSD sources and permitting authorities.

3 Shows alternative as single step for the 21⁄2.year phase-in period for 'anyway', 100,000 tpy CO2e, 50,000 tpy CO2e, and 25,000 tpy CO2 e thresholds respectively.

4 Includes Step 1 for one-half year and 50,000 tpy CO2e threshold for two years. 

5 Includes Step 1 for one-half year and 25,000 tpy CO2e threshold for two years.

6 Phase-in period for final rule includes 1/2 year of Step 1 thresholds and 2 years of Step 2 threshold.
20

Table 1.3 Net Benefits of the Final Rule and Step 3 Regulatory Alternatives

Regulatory Alternative (millions 2007$)

Final Rule + Possible Step 3 of

100, 000 tpy CO2e350, 000 tpy CO2e4

Benefits - Regulatory Relief

Sources

 Title V1$247,253.6 $247,145.3

 PSD2$27,094.7 $26,881.8

Total Source Regulatory Relief $274,348.3 $274,027.1

Permitting Authority

 Title V1$105,368.5 $105,318.8

 PSD2$7,436.61 $7,378.1

Total Permitting Authority $112,805.1 $112,696.8

Total Regulatory Relief $387,153.4+B $386,719.4+B

Costs - Foregone GHG Emission Reductions

 Title V & PSD C C

Net Benefits $387,153.4+B-C $386,724.1+B-C

Benefits represent regulatory relief for sources with the annual potential to emit below the thresholds 

shown.

B - unquantified benefits of the rule include regulatory relief from BACT requirements for PSD sources

C - unquantified social costs of tailoring rule represents economic value of foregone environmental 

benefits (potential GHG emission reductions) during Step 1, 2,and 3 of the phase in period. 

Foregone GHG emission reductions are not known at this time. See Section 4 of the RIA for a 

qualitative discussion of the social costs of the rule.

1Reflects estimates of regulatory relief or avoided permit burden costs for title V GHG sources and 

permitting authorities.

2 Shows estimates of regulatory relief or avoided permit burden costs for GHG PSD sources and 

permitting authorities.

3 Includes 1⁄2 year of Step 1 (anyway threshold), 41⁄2 years of Step 2 (100,000 threshold), 

4 Includes 1⁄2 year of Step 1 (anyway threshold), 2 years of Step 2 (100,000 threshold), 

and 21⁄2 years Step 3 alternative of 50,000.

1.3 Organization of this Report

The remainder of this report supports and details the methodology and the results of this 

illustrative RIA.

 Section 2 presents a discussion of the regulatory baseline, regulatory alternatives and 

affected entities.

 Section 3 describes the benefits of the rule.
21

 Section 4 provides a qualitative description of social costs of the rule.

 Section 5 presents the benefits, costs, and net benefits of the rule.

 Section 6 describes the methodology and the estimated economic impacts of the 

regulatory relief.

 Section 7 discusses small business impacts, unfunded mandates, and effects of the 

rule on energy supply

 Section 8 describes limitations and uncertainties of the analysis

 Section 9 lists the references for the analyses included in this RIA.
22

Section 2

Baseline Description, Regulatory Alternatives, and Affected Entities

As previously stated, this final rule is essentially providing regulatory relief and does not 

include direct regulatory provisions for any industrial, commercial, or residential entities. An

analysis is presented for smaller sources that experience regulatory relief. This rule increases the 

GHG applicability threshold for title V from 100 tpy CO2e and for new and modifying sources of 

GHG emissions from the CAA mandated 100 or 250 tpy CO2e major source applicability

threshold in a phased-in step process described in Table 2.0. 

Table 2.0. Phase-In Steps for Large Sources for the Final GHG Tailoring Rule

1

PSD Title V

Step 1: Phase-in of Large Sources

(January 2, 2011 – June 30, 2011)

(referred to as ‘anyway’ threshold 

or Step 1)

Permitting based on emissions 

of non-GHG pollutants and, 

for BACT applicability with 

GHG emissions or GHG 

emission increases above 

75,000 tpy CO2e

Sources with title V permits for nonGHG pollutants will address GHG 

as part of title V permitting

Step 2: Phase in for Large Sources

(July 1, 2011 – June 30, 2013)

(referred to as 100,000 tpy CO2e threshold

or Step 2)

Sources above 100,000 tpy 

(new) and 75,000 tpy (major 

modifications) of CO2e (and 

not already subject to PSD 

based on non-GHG) 

Sources that exceed 100,000 tpy 

GHG threshold will be required to 

obtain a title V permit if they do not 

already have one

Step 3: Phase in for Large Sources

(July 1, 2013 – April 30, 2016)

Effective only after additional regulatory 

process

An enforceable commitment 

to assess experience from 

Steps 1 and 2; commit to 

propose, consider comments, 

and promulgate potential Step 

3 (level will not go below

50,000 tpy CO2e [new] and 

50,000 tpy CO2e [major 

modifications])

An enforceable commitment to 

assess experience from Steps 1 and 

2; commit to propose, consider 

comments, and promulgate potential 

Step 3 (level will not go below 

50,000 tpy CO2e) 

Final Phase

Effective only after additional regulatory 

process

EPA will take rulemaking 

action in 2016 or before to 

address small sources in light 

of the 5-year study 

EPA will take rulemaking action in 

2016 or before to address small 

sources in light of the 5-year study

1 Thresholds/significance levels are based on PTE. 

The rules also sets GHG significance levels for each step under PSD to determine applicability 

as it relates to GHG emissions or emission increases for projects at major sources.

The baseline for this rulemaking is a state of regulation in which the statutory thresholds 

of 100/250 tpy CO2e apply for title V sources and new or modifying PSD sources beginning 

January 2, 2011 absent actions taken in the final tailoring rule. Within this framework, there are 
23

two general possibilities – ‘no action’ or ‘regulatory relief action’ taken by EPA. Under the ‘no 

action’ case baseline, statutory limits become effective and permitting authorities are 

overwhelmed with permit applications. Millions of new sources in total many of which have not 

been regulated under the Act are required to obtain title V sources and tens of thousands of these 

sources will face PSD permitting annually. In contrast, the EPA may take action as it has in this 

final rule to provide ‘regulatory relief’. As described, the ‘no action’ case is the analytical 

baseline for this RIA. All alternatives analyzed in this RIA show the level of regulatory relief in 

comparison to a baseline in which statutory CAA thresholds of 100/250 tpy CO2e are required. 

For larger sources of GHG, there are no direct economic burdens or costs as a result of this rule, 

because requirements to obtain a title V operating permit or to adhere to PSD requirements of the 

CAA are already mandated by the Act and by existing rules and are not imposed as a result of 

this rulemaking. 

In order to analyze the baseline administrative burden created by adding GHGs to 

existing PSD and title V permitting programs, it was necessary to develop information on the 

number of affected facilities at the current permitting major source thresholds (generally, 100 

tons per year for Title V and 100 or 250 tons per year for PSD depending on the source category

classification). An affected facility would be one who's annual emissions of the GHG equal or 

exceed the major source threshold, based on a PTE basis. Detailed descriptions of the 

methodologies used are provided in Attachments B and C of the RIA. An explanation of the 

uncertainties associated with this methodology is discussed in Section 8 of this report. The 

following are the basic steps used in the methodology to estimate affected sources and permitting 

actions under the baseline scenario. 

1) Identify GHG source categories. EPA evaluated the same range of stationary source 

types with direct GHG emissions as identified in EPA’s proposed and final GHG mandatory

reporting rule (MRR)2. The GHG MRR source categories were based on a comprehensive 

review of all U.S. source categories with GHG emissions from EPA’s national inventory of GHG 

 

2

74 FR 68, pp. 16447 – 16731 and 74 FR 209, pp. 56260-56519, respectively. 
24

emissions3. The stationary sources evaluated in this analysis can be grouped in the sectors shown 

below:

● Electricity Generation (facilities with fossil fuel-fired electric generating units);

● Industry (range of industries with process and combustion GHG emissions);

● Energy (oil and gas extraction, transport, and processing; underground coal mining);

● Waste Treatment (landfills and municipal solid waste incinerators);

● Agriculture (stationary fuel combustion units);

● Commercial (variety of establishments including office, retail, hospitals, lodging, etc.); 

● Residential (single-family and multi-family housing).

A small number of direct emission source types included in the GHG MRR analysis were 

not included in the tailoring rule analysis because the GHG emissions from these sources were 

primarily fugitive emissions. Fugitive emissions are generally defined as emissions which are 

not released, or could not be reasonably collected and released, through a stack or vent. Under 

the PSD rules, fugitive emissions are only included in potential to emit estimates if the source is 

one of 28 listed PSD source categories. The excluded categories included electrical equipment 

fugitive SF6 emissions; wastewater treatment plant fugitive emissions not associated with one of 

28 listed PSD source categories; and, agricultural manure management fugitive emissions.

2) Estimate Actual Facility Level GHG Emissions. We started with estimates of facility

emissions based on actual operating conditions, not PTE, since this is the standard format of the 

EPA’s national inventory of GHG emissions. Actual emissions for each source category were 

obtained from earlier analyses performed to develop emission thresholds for the proposed and 

final GHG MRR, or we used the same data sources when additional analyses were required. 

EPA generally relied on published research and publicly available government data, such as 

EPA's eGRID database of electric generating source emissions, Economic and Housing Census 

data, and Energy Information Agency (EIA) data on energy consumption. See Attachment B for 

full descriptions of the methodologies used to estimate emissions for each source category.

 

3 U.S. Environmental Protection Agency (EPA), Inventory of U.S. Greenhouse Gas Emissions 

and Sinks: 1990 – 2007, April 2009, US EPA 430-R-09-004. 

http://www.epa.gov/climatechange/emissions/usinventoryreport.html
25

3) Estimate PTE-based Facility Level GHG Emissions. It was necessary to convert 

actual emissions to a PTE basis, because as noted earlier, that is the basis for determining 

applicability under PSD and title V. PTE is generally defined as the amount of emissions that 

can be emitted from a source operating at full equipment capacity, 24 hours per day, 365 days 

per year. Capacity information and annual GHG emissions were available for some of the source 

categories from analyses performed to support the GHG MRR. In some cases the supporting 

analyses had already calculated GHG emissions on a full capacity basis, in which case EPA

directly used those estimates as PTE estimates. Alternatively, some data from the supporting 

analysis estimated actual annual emissions using a baseline year. If capacity and baseline year 

production information was provided in the supporting data, EPA adjusted the source actual 

emissions estimate by the ratio of annual capacity to baseline production to estimate PTE. If 

capacity information was not available, EPA used capacity factors from other data sources to 

adjust actual emission estimates to PTE estimates. These capacity factors add varying 

uncertainty to the PTE estimate. Detailed descriptions of the different PTE calculation 

methodologies are included in the source descriptions in Attachment B.

4) Count Facilities that Exceed the Baseline GHG Thresholds. After compiling facility

level PTE-based emission under Step 3, these estimates were evaluated against the threshold 

levels in order to determine whether or not a facility would be included in the baseline threshold 

count. The number of facilities exceeding the baseline threshold based on a PTE basis were then 

identified as ‘major sources’ for the purposes of GHG permitting under PSD and title V. 

Our facility counts include both existing sources that would exceed the baseline GHG 

thresholds and newly constructed sources. Newly constructed sources only represent a small 

fraction (less than 2 percent for the baseline scenario) of the total population of GHG major 

sources in a given year. Growth rates used to estimate new construction were based on a variety 

of sources including Economic Census data, EIA energy survey data, and various EPA 

regulatory impact analyses and information collection requests which require source population 

estimates. In some cases there was sufficient information to distribute new sources to different 

thresholds based on emission information specific to the new sources (electric generating, 

municipal solid waste combustors, and commercial stationary fuel combustion).

5) Estimate total permitting actions for PSD and title V based on facility counts. The 

next basic step was to estimate permitting actions that result from the baseline facility counts. 
26

For PSD, this required an estimate of modifications at existing facilities in addition to the 

estimate of newly constructed facilities from step 4. Our estimate for modifications at existing 

facilities is based on calculating how many of the facilities identified as major sources would 

undergo a modification project that would exceed our baseline GHG thresholds. The 

methodology for estimating modifications is described in detail in Attachment C. The basic 

methodology for estimating modifications at existing, but newly classified GHG major sources, 

under PSD was to apply a 4 percent modification rate to the population of facilities that exceed 

the threshold. For title V, any facility, existing or newly constructed, that exceeded the baseline 

thresholds for GHG permitting (i.e., 100 tpy CO2e) was considered to be required to get a title V 

permit under the baseline scenario.

6) Calculate costs for permitting actions. The total permitting actions calculated under 

step 5 above, were then combined with average permitting costs for each type of permitting 

activity for PSD and title V to calculate overall permitting burden. See Attachment C for full 

description on assumptions regarding permitting costs and how these were applied to different 

permitting actions under PSD and title V.

7) Adjustments based on public comment on proposal. We made three main adjustments 

to our basic methodology based on public comments received on our proposal. Two of these 

affected the estimate of modifications under PSD. Many commenters indicated that they felt 

EPA had underestimated the number of modification permitting actions associated with PSD. 

Our proposed general modification rate (2 percent of the newly major facility population) used to 

estimate modifications at existing, but newly newly major GHG sources did not appear to have 

caught the extent to which facility level changes could result in projects that exceed the GHG 

permitting threshold. In reassessing this modification rate, we determined that we had not fully 

accounted for all possible PSD modifications relative to the major source population in 

calculating this modification rate. Based on this reassessment we revised our general 

modification rate to 4 percent (as noted above in step 5) that is used to estimate the annual 

modification activity at existing, but newly major GHG sources. 

Another adjustment to the PSD modifications methodology was based on public 

comments on the proposal that we did not fully account for the number of major modification 

projects at existing major sources because we did not capture the number of existing projects that 

avoid major PSD review (by either taking limits—synthetic based modifications—or by netting 
27

out) for existing pollutants but that would not be able to avoid PSD for GHGs. Our 

modifications methodology, as described in Attachment C, now specifically includes additional 

modifications for these projects that would not be able to avoid PSD review because of their 

GHG emissions. 

Lastly, based on public on public comments we revised our estimate of capacity 

utilization used for estimating PTE-based emissions for the general manufacturing source 

category (referred to as ‘unspecified stationary combustion’ in the GHG threshold analysis in 

Attachment B) and the oil and gas industry. In our proposal, the range for capacity utilization for 

‘unspecified stationary combustion’ varied from 70 to 90 percent depending on manufacturing 

category, and for the oil and gas industry we used 90 percent. Based on comments received 

indicating that these utilization rates are higher than what is normally achieved in real-world 

conditions, particularly for smaller manufacturing type facilities, we used a 50 percent capacity

utilization rate for both of these source categories. We believe that these assumptions better 

reflect what can be deemed reasonable operation under normal conditions for facilities in these 

source categories. 

The baseline affected sources estimated using the preceding methodology are shown on 

Table 2.1. As Table 2.1 shows, EPA estimates the total number of title V sources and the 

annual estimate of new PSD sources that would be required to obtain permits absent this 

tailoring rule in a world where EPA takes ‘no action’. These affected source estimates provide a 

baseline on which to estimate the regulatory relief allowed by EPA in this final rule and possible 

at alternative regulatory thresholds. We compare these baseline affected source counts to the 

sources counts at alternative regulatory relief thresholds to determine the number of sources 

likely to obtain regulatory relief due to the tailoring rule.

All regulatory alternatives evaluated in this RIA, except the ‘no action’ alternative, 

represent regulatory relief possibilities that establish title V permitting thresholds and PSD 

permitting thresholds and significance levels above the statutory 100/250 tpy CO2e requirements. 

In this RIA, EPA analyzes the benefits and costs of the tailoring rule for thresholds finalized in 

this rule for Steps 1 and 2 of the phase-in period, as well as, the proposal thresholds of 25,000 

tpy CO2e and a possible Step 3 minimum threshold level of 50,000 tpy CO2e. The annual levels 

of regulatory relief associated with these regulatory alternatives are evaluated, as well as, two 
28

and one-half year estimates that cover the Steps 1 and 2 phase-in period and for the full phase-in 

period of approximately 5 years.

For the initial phase-in Step 1, only title V and new PSD sources already applying for 

permits due to air pollutants other than GHG emissions are required to obtain a permit. New 

PSD sources required to obtain permits for GHG must also comply with BACT requirements for 

GHG. However, under Step 1, only modification projects or sources with GHG emissions or 

emission increases that equal or exceed 75,000 tpy CO2e PTE are required to comply with BACT 

requirements for GHG emissions. During Step 2 of the phase-in, sources at or above 100,000 

tpy CO2e PTE are required to a obtain title V permit. Likewise, new sources at or above the 

100,000 tpy CO2e PTE and modifying sources with PTE at or above 75,000 tpy CO2e are 

required to comply with the requirements of PSD. After the initial two steps of the phase-in, 

EPA will determine whether a Step 3 that lowers thresholds below 100,000 tpy CO2e PTE 

beginning July 2013 is feasible. However, in this final rule, the Agency is making an 

enforceable commitment to conduct a regulatory-setting process to consider the experience 

during the initial steps prior to lowering the threshold in a further Step 3. EPA also commits to 

not lowering the threshold below 50,000 tpy CO2e PTE until 2016. EPA will also conduct a 

study of permitting processes at existing levels in the next 5 years and determine whether 

thresholds can be lowered below 50,000 tpy CO2e PTE after another regulatory process. At 

proposal, EPA identified as the pollutants subject to PSD and title V the group of up to six GHG 

emissions, each one weighted for its global warming potential (GWP), that are included in 

regulations for their control under the CAA. EPA also proposed to conform its action on PSD 

state implementation plans (SIPs) and title V programs to match the proposed Federal 

applicability requirements. In its proposed rule, EPA provided temporary regulatory relief for 

sources of GHG emissions below a level of 25,000 tpy CO2e PTE. 

The rationale for finalizing the previously described thresholds in the tailoring rule is 

based in part on our review of the costs and benefits associated with the different thresholds 

evaluated and described in this RIA. However, the primary basis for choosing the threshold 

enumerated in Table 2.0 is to ensure consistency with the legal doctrines set forth in the 

preamble of the tailoring rule. To apply the statutory PSD and title V applicability thresholds to 

sources of GHG emissions would create immediate and insuperable administrative burdens for 

permitting authorities and perhaps absurd results. By establishing the applicability thresholds at 
29

the levels for the first and second steps of the phase-in period, we would avoid an 

administratively impossible scenario where each year tens of thousands of new sources and 

modifications would become subject to PSD review, and, in total, millions of sources would 

require title V operating permits. We used the results of this RIA to support the threshold 

decisions, which we believe would result in a variance from existing statutory permitting 

thresholds that would—consistent with the supporting legal rationale—be as limited as possible

and with consideration given to costs and benefits as described in this RIA.

Table 2.2 describes qualitatively the benefits, costs, and economic impacts analyzed for 

regulatory alternatives in this RIA. As shown in Table 2.1, leaving the CAA thresholds 

unchanged for sources of GHG emissions is the baseline or ‘no action’ alternative that will 

render this tailoring rule as having no impact on sources or permitting authorities beyond the

current CAA requirements. In this ‘no action’ case, we are simply comparing the baseline to 

itself. Thus, this is a regulatory alternative with zero benefits and zero costs. Under this 

alternative, small and large sources of GHG emissions will be required to obtain title V operating 

and PSD permits as mandated by the Act. Although this alternative is considered for analytical 

completeness, its impact is essentially the same as no GHG tailoring rule and no further 

discussion of this alternative is considered in this document. In addition to the ‘no action’ 

alternative, this RIA examines Step 1 and 2 thresholds of the phase-in final rule, as well as a less 

Table 2.1. Baseline Sources Subject to Statutory Permit Requirements

Notes: Title V sources are the total number of sources estimated to require an operating permit under statutory CAA 

thresholds. PSD sources are new source estimates anticipated to require compliance with permitting annually. 

Estimates for PSD sources are for newly constructed facilities and do not include modifications at existing facilities 

that may also be subject to PSD requirements. 

Sector

Baseline Number of Sources Requiring Permits

100/250 tpy CO2e Thresholds

Title V New PSD

Electricity 2,237 93

Industrial 178,037 604

Energy 5,000 48

Waste Treatment 4,206 2

Agriculture 37,351 299

Commercial 1,355,921 12,041

Residential 4,535,500 6,915

Totals 6,118,252 20,002
30

than 50,000 tpy CO2e threshold (meaning sources below 50,000 tpy obtain regulatory relief and 

this is the minimum level for potential Step 3) and a less than 25,000 tpy CO2e threshold 

(meaning sources below 25,000 tpy obtain regulatory relief and this is the proposed rule 

threshold level) regulatory alternatives.

The benefits of this rule (and the alternatives considered) are the permit burden costs 

avoided due to increasing the threshold levels above current CAA requirements as reflected in 

Table 2.1. Under this final rule, millions of title V sources in total and thousands of PSD sources 

annually are afforded regulatory relief. For each of the regulatory alternatives increasing the 

threshold above statutory levels, the benefits of this tailoring rule are primarily the avoided 

permitting costs for affected small sources of GHG emissions. The permitting costs avoided by 

small sources are quantified for the final rule Step 1 and 2 thresholds and each of the regulatory

alternatives in Section 3 of this document. The avoided costs associated with compliance with

BACT requirements for PSD new and modifying sources are addressed qualitatively in this RIA 

because of lack of sufficient data to estimate quantitative BACT requirements for affected GHG 

sources.

The industry categories for sources anticipated to experience regulatory relief at the 

threshold levels finalized in this regulation are shown in Table 2.3. As Table 2.3 shows, this 

action lifts permitting requirements for over 6 million potential title V sources in total and tens of 

thousands of potential PSD new and modifying sources annually otherwise required by the CAA

to obtain permits. The estimates for title V sources represent the total number of sources afforded 

regulatory relief by this rule and for regulatory alternatives. In contrast, the estimates shown for 

PSD represent the annual estimate of new PSD sources expected to experience regulatory relief 

from this rule. For additional industry details including applicable affected industry North 

American Classification System (NAICS) codes see Attachment A “Source Categories Affected 

by the Rule with Industry Detail.”

EPA considered a number of factors involving administrative burden and necessity in 

finalizing the thresholds for this rule, including comments received in response to the proposed 

rule. After considering the comments regarding the number of affected sources at various 

thresholds, EPA revised its estimates of sources potentially required to obtain permits 

significantly increasing the number of affected sources at the alternative threshold/significance 

levels as discussed in detail previously.
31

Table 2.2. Qualitative Description of Benefits and Cost of the Tailoring Rule

Description

No Action

Alternative

(Thresholds 

Remain at

100/250 tpy)1

Alternative 

(Proposal)

25,000 tpy

GHG Emission 

Threshold2

Alternative

50,000 tpy

GHG Emission 

Threshold2

Step 2 

100,000 tpy

GHG Emission 

Threshold2

Step 1

Anyway

Threshold2

Benefits

(Regulatory 

relief—avoided 

permitting 

requirements 

and associated 

costs)

No avoided 

permitting costs 

(i.e., over 6 

million title V 

sources in total 

and over 80 

thousand PSD 

small new and 

modifying GHG 

sources annually 

(over 240

thousand PSD 

sources during 

Steps 1 and 2) 

remain subject to 

programs)

Avoid 

permitting costs 

for 6.098 

million title V 

sources in total 

and for 72.3 

thousand new 

and modifying 

PSD sources

annually 

(or 216.9 

thousand PSD 

sources during

the Steps 1 and

2 time period)

Avoid 

permitting costs 

for 6.102 

million sources

in total and for 

79.7 thousand 

new and 

modifying PSD 

sources annually 

(or 239.1 

thousand PSD 

sources during

the Steps 1 and 

2 time period)

Avoid 

permitting costs 

for 6.105 

million sources 

in total and for 

80.7 thousand 

new and 

modifying PSD 

sources annually 

(or 242.1

thousand PSD 

sources during 

the Steps 1 and 

2 time period)

Avoid 

permitting costs 

for 6.106 

million sources 

in total and for 

81.6 thousand 

new and 

modifying PSD 

sources annually 

(or 244.8

thousand PSD 

sources during 

the Steps 1 and 

2 time period)

Social Costs

(Foregone 

emission 

reductions due 

to regulating 

GHG sources)

No foregone 

emission 

reductions

Foregone GHG 

emission 

reductions for 

affected sources 

(addressed 

qualitatively)

Foregone GHG 

emission 

reductions for 

affected sources

(addressed 

qualitatively)

Foregone GHG 

emission 

reductions for 

affected sources

(addressed 

qualitatively)

Foregone GHG 

emission 

reductions for 

affected sources

(addressed 

qualitatively)

Economic 

Impacts 

(Avoided costs 

compared to 

annual sales or 

revenue data for 

affected 

sources)

No avoided costs Impact of 

avoided costs 

(benefits) 

compared to 

annual sales 

revenues of 

affected sources

Impact of 

avoided costs 

(benefits) 

compared to 

annual sales 

revenues of 

affected sources

Impact of 

avoided costs 

(benefits) 

compared to 

annual sales 

revenues of 

affected sources

Impact of 

avoided costs 

(benefits) 

compared to 

annual sales 

revenues of 

affected sources

1 This table recognizes that triggering for GHG permitting has occurred with promulgation of the LDVR. Because 

of this event, sources with the potential to emit 100 tpy CO2e are required to obtain a title V permit and new or

modifying sources with the potential to emit 250 tpy are required to obtain a PSD permit as mandated by the CAA. 

If current threshold levels in the CAA remain unchanged for GHG emissions, the tailoring rule has no effect on 

sources or permitting authorities and provides no regulatory relief to sources or permitting authorities. 

2 Promulgated Steps 1 and 2 thresholds and alternative regulatory thresholds are shown. Threshold levels represent 

PTE levels for affected sources. Sources affected, enumerated above, represent sources, permits, or actions. 

Alternative 50,000 tpy CO2e is the minimum threshold level to be considered for a possible Step 3.
32

Table 2.3. Estimated Number of Affected Sources Experiencing Regulatory Relief for 

Final Rule and Regulatory Alternatives1, 2, 3

Number of Sources Experiencing Regulatory Relief

25,000 CO2e tpy 50,000 CO2e tpy

Final Rule: Step 2

100,000 CO2e tpy

Final Rule: Step 1

Anyway Threshold

Sector Title V New PSD Title V New PSD Title V New PSD Title V New PSD

Electricity 161 20 285 29 285 33 285 93

Industrial 166,908 574 168,976 586 170,654 599 170,910 604

Energy 2,401 23 2,513 38 2,536 44 2,588 48

Waste Treatment 1,431 0 2,448 1 3,165 1 3,358 2

Agriculture 37,351 299 37,351 299 37,351 299 37,351 299

Commercial 1,354,760 12,034 1,355,321 12,038 1,355,870 12,039 1,355,921 12,041

Residential 4,535,340 6,912 4,535,480 6,915 4,535,500 6,915 4,535,500 6,915

Totals 6,098,352 19,862 6,102,374 19,906 6,105,361 19,930 6,105,913 20,002

% Emissions Covered43% 8% 11% 13%

1 Number of sources is determined on a PTE basis. Estimates for PSD sources are for newly constructed facilities 

and do not include modifications at existing facilities that may also be subject to PSD requirements. Source 

estimates shown above represent the total number of title V sources potentially afforded regulatory relief during 

Step 1 and 2 of the phase-in period. In contrast, for new PSD sources, the estimates shown are the annual estimates 

of permits avoided for new small PSD GHG sources.

2 See Attachment B for more details of how thresholds and sources affected were developed. 

3 The “no action” alternative is not included since the number of sources experiencing regulatory relief for this 

regulatory alternative is by definition zero.

4 Percentage of emissions covered represents estimated actual emissions from sources expected to experience 

regulatory relief as a percentage of total stationary source GHG emissions.

When comparing the regulatory alternatives for revised affected sources at alternative 

thresholds as discussed above, there are differences between them. The reason the thresholds 

and significance levels are chosen as shown in Table 2.0 for Steps 1 and 2 of the phase-in period 

with an additional Step 3 to be considered only after a subsequent regulatory process is because 

permitting authorities cannot immediately accommodate a huge increase in permitting. The 

thresholds chosen for Steps 1 and 2 are chosen over the proposal level of 25,000 tpy CO2e,

because evidence suggests that permitting authorities can run programs for the levels of 

permitting that would be required Steps 1 and 2, and EPA believes legal doctrine requires the 

threshold to be as low as administratively feasible. The choice of a threshold is a balancing act 

of administrative considerations between threshold levels that EPA feels are not administratively

feasible at this time (i.e., 25,000 tpy CO2e potential to emit threshold) compared to threshold 

levels that are not impossible such as the Step 1 ‘anyway’ threshold and the Step 2 100,000 tpy

CO2e threshold achieving a reasonable balance. For more information on the process used to 

determine the appropriate thresholds/significance levels for Steps 1 and 2 of the phase-in period,
33

see Attachment B. There are a number of uncertainties involved in the determination of the 

baseline and regulatory alternative affected sources. These threshold analysis uncertainties are 

discussed in Section 8 of the RIA.
34

Section 3

Benefits (Regulatory Relief or Avoided Permit Burden Costs)

EPA estimated the regulatory relief or avoided title V and PSD permitting costs for small 

sources of GHG that will be postponed as a result of this rulemaking. This analysis focuses on 

the burdens that are being lifted for smaller sources as a result of this rule. In addition, an 

accounting of the avoided costs to State, local, and tribal permitting authorities is provided. 

These avoided costs relate specifically to information collection costs or burden costs for sources 

of GHG emissions that would have been required to obtain an operating permit under title V or 

required to modify an existing permit to address GHG if not for this rule. Avoided costs shown 

also include information collection requirements for additional PSD permits required for new or 

modifying sources of GHG, as well as the costs to State, local, and tribal permitting authorities 

for extending their existing permitting programs to include sources of GHG. These avoided 

costs do not include the cost of modifying and new source compliance with BACT because of 

the lack of available data. Within this benefits section of the RIA we are providing an illustrative 

monetary estimate of statutory permitting requirements to show the magnitude of the savings that 

hypothetically result from this rulemaking. While we believe it is impossible to implement these 

permit requirements by January 2, 2011 for the reasons laid out in the preamble, it is useful to 

understand the scale of what the burden may have been. For sake of simplicity, we refer to this 

illustrative monetary estimate as the monetized benefits of the regulatory relief presented by this 

rulemaking or regulatory relief benefits for brevity.

Time and costs associated with permit activities are derived from existing Information

Collection Request (ICR) EPA documents for title V and PSD as described below. Significant 

uncertainties exist in the following estimates because of the lack of historical record and 

permitting experience on which to base resource needs to consider sources of GHG emissions in 

permitting and are discussed more fully in Section 8 of this RIA.

3.1 Avoided Burden Costs for Title V

Under Step 1 of the phase-in, major sources of GHG that would otherwise be required to 

obtain an operating permit due to emissions of non-GHG pollutants are required to include GHG

in permit requests. During this period, sources other than those obtaining permits for non-GHG 

pollutants will experience regulatory relief. Under Step 2, sources below 100,000 tpy CO2 e PTE 

will experience regulatory relief, while sources above this threshold will be required to obtain 
35

operating permits. Table 3.0 shows the estimated annual permitting cost or burden cost avoided 

for sources subject to title V experiencing regulatory relief during the period January 2, 2011,

through June 30, 2013, as well as for two other regulatory alternatives. The alternatives shown 

are a threshold of 50,000 tpy CO2 e PTE (the minimum threshold for a possible Step 3) and 

25,000 tpy CO2 e PTE (the proposal threshold level). Estimates shown are the annual portion of 

regulatory relief expected to occur for small GHG sources and permitting authorities due to this 

final rule and equate to regulatory relief for approximately 2 million title V sources.

As shown on Table 3.0, the cost for a new industrial source to obtain an operating permit 

for GHG is $46,350 per permit. Over 71,000 industrial sources are likely to benefit from this 

rule because of the postponement of permitting requirements under Steps 1 and 2 of the phase-in 

period annually. Approximately 61,836 industrial sources annually will be allowed to postpone 

permit revisions for GHG at an avoided cost of $1,677 per permit revision under the ‘anyway’ 

threshold Step 1. The estimate of industrial sources avoiding permit revisions becomes 60,921 

annually under Step 2, the less than 100,000 tpy CO2e threshold. The burden cost to obtain a 

new commercial or multifamily residential operating permit is approximately $23,175 per permit 

with about 2.0 million of these sources annually benefiting from this rule by avoiding these costs 

for the phase-in period. The total regulatory relief or benefits for smaller sources of GHG 

amount to approximately $49.5 billion per year under Steps 1 and 2 of the phase-in period.

Avoided costs for sources at regulatory alternative threshold levels of 50,000 tpy and 25,000 tpy 

CO2e are also presented in Table 3.0. All benefits estimates shown in this report are in 2007$.

State, local, and tribal permitting authorities will also benefit from this rule by avoiding 

the administrative burden of processing over 2 million title V operating permits for small 

industrial, commercial, and residential sources of GHG annually. Avoided permitting cost 

estimates for permitting authorities and sources are calculated based on information obtained 

from the April 2007 Information Collection Request for State Operating Permit Regulations4

Annual values are derived from Tables 7 and 8 of this document. For consistency, the permitting 

authority labor costs are updated to 2007 dollars using the 2007 General Schedule Salary Table

from the Office of Personnel Management. For the purposes of this analysis, we assume that 

 

4

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

OMB Control Number 2060-0243, 2007.
36

Table 3.0. Annual Title V Regulatory Relief (Avoided Cost) Estimates for Affected Sources of GHG and Permitting 

Authorities at Alternative Thresholds1,2,3

Activity

Cost per 

Permit 

(2007$)

Regulatory Alternative 

25,000 CO2e tpy

Regulatory Alternative 

50,000 CO2e tpy

Final Rule: Step 2 

100,000 CO2e tpy

Final Rule: Step 1

Anyway Threshold

Number 

of 

Permits

Avoided 

Costs 

(millions 

2007$)

Number 

of 

Permits

Avoided 

Costs 

(millions 

2007$)

Number of 

Permits

Avoided 

Costs 

(millions 

2007$)

Number 

of 

Permits

Avoided 

Costs 

(millions 

2007$)

Sources

New Industrial $46,350 69,726 $3,231.8 70,848 $3,283.8 71,657 $3,321.3 71,829 $3,329.3

New Commercial/Residential $23,175 1,985,504 $46,014.1 1,985,740 $46,019.5 1,985,930 $46,023.9 1,985,948 $46,024.3

Permit Revisions due to GHG $1,677 52,639 $88.3 59,930 $100.5 60,921 $102.2 61,836 $103.7

Source Total 2,107,869 $49,334.1 2,116,518 $49,403.8 2,118,508 $49,447.4 2,119,613 $49,457.3

Permitting Authority

New Industrial $19,688 69,726 $1,372.8 70,848 $1,394.9 71,657 $1,410.8 71,829 $1,414.2

New Commercial/Residential $9,844 1,985,504 $19,545.3 1,985,740 $19,547.6 1,985,930 $19,549.5 1,985,948 $19,549.7

Permit Revisions due to GHG $1,840 52,639 $96.9 59,930 $110.3 60,921 $112.1 61,836 $113.8

Permitting Authority Total 2,107,869 $21,014.9 2,116,518 $21,052.8 2,118,508 $21,072.4 2,119,613 $21,077.6

Total Title V Regulatory Relief $70,349 $70,456.6 $70,519.8 $70,534.9

Percentage of Emissions Covered3

3% 8% 11% 13%

Sums may not add due to rounding.

1 Avoided costs shown represent the annual estimates of the regulatory burden relief from this rule and for regulatory alternatives for over 2 million sources of 

GHGs (about 1/3 of the total number of title V sources expected to obtain regulatory relief). See Appendix B and C for more details. Sources experiencing 

regulatory relief are those with the potential to emit less than the threshold levels annually.

2 These estimates are explained in more detail in Attachment C “Summary of Methodology and Data Used to Estimate Burden Relief and Evaluate Resource 

Requirements at Alternative Greenhouse Gas Permitting Thresholds.”

3

Percentage of emissions covered represents estimated actual emissions from sources expected to experience regulatory relief as a percentage of total stationary 

source GHG emissions.
37

commercial/residential sources that exceed the major source threshold due to GHG emissions

will not likely have as substantial applicable permitting cost requirements as industrial 

sources. We assumed that permits for such sources will require only one half the time to prepare 

and issue as those for industrial sources, which have applicable requirements in addition to GHG. 

Therefore, it is estimated that new commercial/residential permits require 50 percent of the time 

needed for new industrial permits, or 214 hours compared to 428 hours for permitting authorities.

For significant revisions and permit renewals, it is assumed that incorporating GHG information 

adds 40 hours, or an additional 10 percent to the current updating and processing time. For more 

information on the methods used to calculate permit processing costs for permitting authorities 

for title V permitting, see Attachment C, “Summary of Methodology and Data Used to Estimate 

Burden Relief and Evaluate Resource Requirements at Alternative Greenhouse Gas Permitting 

Thresholds.”

The cost savings for permitting authorities relating to title V are summarized in Table 3.0

and are estimated to exceed $21 billion annually. Costs avoided annually for permitting 

authorities at alternative threshold levels other than Steps 1 and 2 are also shown on Table 3.0. 

This rule specifies a phased-in step approach to establish title V and PSD thresholds. For 

this reason, it is appropriate to assess the regulatory relief during the various steps of the phase-in 

period in addition to looking at regulatory relief on an annual basis as previously discussed. 

Since thresholds for only Steps 1 and 2 are promulgated in this rulemaking with a potential Step 

3 to be considered only after subsequent rulemaking, we calculate the regulatory relief possible 

for a two and one-half year period, the approximate time period covered by Steps 1 and 2 of this

tailoring rule. Considering the regulatory relief for the 2.5 year period allows us to evaluate 

alternative regulatory relief based not only on threshold levels, but also based upon the timing of 

the steps of the phase-in period. Table 3-1 presents the Steps 1 and 2 regulatory relief for title V 

based upon alternative regulatory thresholds and the timing of the phase-in steps. Alternatives of 

25,000 tpy CO2e, 50,000 tpy CO2e, 100,000 tpy CO2e, and the ‘anyway’ thresholds are evaluated 

as if they were implemented for the entire Step 1 and 2 period. The 25,000 tpy CO2e and the 

‘anyway’ threshold regulatory relief shown represent the bounding estimates for regulatory relief 

for these threshold alternatives as well as alternative timings of the steps. If the 25,000 tpy CO2e 

threshold were imposed for Steps 1 and 2 of the phase-in, regulatory relief or avoided title V

permitting costs for sources and permitting authorities would amount to approximately $175.9
38

billion for a Steps 1 and 2 phase-in period. Alternatively if the ‘anyway’ based threshold were 

imposed for a 2.5 year period, the regulatory relief would be $176.3 billion for sources and 

permitting authorities during the first two steps of the phase-in period. The final tailoring rule 

promulgated, establishes the ‘anyway’ threshold for Step 1 and 100,000 tpy CO2e threshold for 

Step 2. The total regulatory relief for the final rule for the 2.5 year period for title V is estimated 

to be $176.3 billion. Altering Step 2 to be 25,000 tpy CO2e and 50,000 tpy CO2e with Step 1 as 

the ‘anyway’ threshold would result regulatory relief estimates for the three year period of $176

billion and $176.2 billion, respectively. 

3.2 Avoided Information Collection Costs Associated with the PSD Program

This rulemaking limits the new sources requiring PSD permits for Step 1 to those that 

would be required to comply with PSD for non-GHG emissions. For modifying sources, the

significance level requiring permits is 75,000 or greater tpy CO2e PTE. In Step 2 of the phase-in 

period, the threshold becomes 100,000 tpy CO2e PTE or greater for new sources and the

significance level for modifying sources remains at 75,000 or greater tpy CO2e. Table 3.2

summarizes the estimated benefits to small GHG sources resulting from this final rule. Annual 

regulatory relief for Steps 1 and 2 of the phase-in period, as well as additional alternative 

regulatory thresholds, are depicted on Table 3.2. The estimated annual burden or permit-related

costs avoided by small GHG sources amount to around $5.5 billion annually during Step 1 and 

$5.4 billion during Step 2 with the burden costs per permit expected to be $131 thousand for new 

sources, $84.5 thousand for modified industrial sources, $82.3 thousand for new commercial or 

residential sources, and $59.2 thousand for modifying commercial and residential sources. State, 

local, and tribal permitting authorities are expected to avoid administrative costs of $1.5 billion 

under Step 1 and $1,485 million under Step 2 annually. 

Burden estimates for the PSD program permitting authorities are calculated based on 

listed values obtained from Tables 6-1 and 6-2 on pages 18-19 in the Information Collection 

Request for Prevention of Significant Deterioration and Nonattainment New Source Review 
39

Table 3-1. Steps 1 and 2 Title V Regulatory Relief (Avoided Cost) Estimates for Affected Sources of GHG and Permitting 

Authorities at Alternative Thresholds1,2

Regulatory Relief Estimates for Step 1 and 2 of the Phase-In Period (January 2, 2011 through July 1, 2013)

Activity Regulatory Alternatives (Avoided Permitting Costs in million 2007$)

Sources 25,000 CO2e tpy 50,000 CO2e tpy 100,000 CO2e tpy

Anyway 

Threshold Anyway/ 50,000 Anyway/25,000

Final Rule

Anyway/100,000

New Industrial $8,079.5 $8,209.5 $8,303.3 $8,323.3 $8,232.3 $8,128.3 $8,307.3

New

Commercial/Residential $115,035.3 $115,048.8 $115,059.8 $115,060.8 $115,051.2 $115,040.4 $115,060.0

Permit revisions due to 

GHG $220.8 $251.3 $255.5 $259.3 $252.9 $228.5 $256.3

Source Total $123,335.5 $123,509.5 $123,618.5 $123,643.3 $123,536.3 $123,397.1 $123,623.5

Permitting Authority

New Industrial $3,431.9 $3,487.2 $3,527 $3,535.4 $3,496.8 $3,452.6 $3,528.7

New

Commercial/Residential $48,863.3 $48,869.1 $48,873.7.0 $48,874.2 $48,870.1 $48,865.4 $48,873.8

Permit revisions due to 

GHG $242.1 $275.7 $280.2 $284.5 $277.4 $250.6 $281.1

Permitting Authority 

Total $52,537.3 $52,632 $52,680.9 $52,694.1 $52,644.3 $52,568.6 $52,683.6

Total Title V Regulatory 

Relief $175,872.8 $176,141.5 $176,299.4 $176,337.5 $176,180.6 $175,965.7 $176,307.1

Benefits represent regulatory relief or avoided costs for sources with the potential to emit below the thresholds shown.

1 Avoided costs shown represent the 21⁄2 year estimates of the regulatory burden relief from this rule and for regulatory alternatives for Steps 1 and 2 for 

the period Jan. 2, 2011 through July 1, 2013. Alternatives 25,000 CO2e tpy, 50,000 CO2e tpy, 100,000 CO2e tpy, and non-GHG based assume these 

thresholds remain in effect for entire 21⁄2 years. Alternatives Anyway/50,000 and Anyway/25,000 assume the Anyway threshold for Step 1 and 50,000 

CO2e tpy and 25,000 CO2e tpy thresholds for Step 2, respectively. Finally the final rule estimates shown in the last column of the table assume the 

Anyway threshold for Step 1 (one half year) and the 100,000 CO2e tpy threshold for Step 2 (two years). 

Sums may not add due to rounding.

2 These estimates are explained in more detail in Attachment C “Summary of Methodology and Data Used to Estimate Burden Relief and Evaluate 

Resource Requirements at Alternative Greenhouse Gas Permitting Thresholds.”
40

Table 3.2. Annual PSD Regulatory Relief (Avoided Costs) for Sources of GHG and Permitting Authorities at Alternative 

Thresholds1,2

Activity

Cost 

per 

Permit 

(2007$)

Regulatory Alternative 

25,000 CO2e tpy

Regulatory Alternative 

50,000 CO2e tpy

Step 2

100,000 CO2e tpy

Threshold, 

75,000 CO2e tpy 

Significance Level

Step 1

Anyway

75,000 CO2e tpy

Significance Level

Number 

of 

Permits

Avoided 

Costs 

(millions 

2007$)

Number 

of 

Permits

Avoided 

Costs 

(millions 

2007$)

Number 

of Permits

Avoided 

Costs 

(millions 

2007$)

Number 

of 

Permits

Avoided 

Costs 

(millions 

2007$)

Sources

New Industrial $84,530 16,892 $1,427.9 24,183 $2,044.2 25,174 $2,128.0 26,089 $2,205.3

New Commercial/Residential $59,152 55,446 $3,279.7 55,481 $3,281.8 55,505 $3,283.2 55,509 $3,283.5

Source Total 72,338 $4,707.6 79,664 $5,326.0 80,679 $5,411.2 81,598 $5,488.8

Permitting Authority

New Industrial $23,243 16,892 $392.6 24,183 $562.1 25,174 $585.1 26,089 $606.4

New Commercial/Residential $16,216 55,446 $899.1 55,481 $899.7 55,505 $900.1 55,509 $900.1

Permitting Authority Total 72,338 $1,291.7 79,664 $1,461.8 80,679 $1,485.2 81,598 $1,506.5

Total PSD Regulatory Relief $5,999.4 $6,787.8 $6,896.4 $6,995.3

1 Avoided costs shown represent annual estimates of the regulatory burden relief for this rule and for regulatory alternatives for sources with the potential to emit 

below the threshold. Sums may not add due to rounding.

2 Attachment C: “Summary of Methodology and Data Used to Estimate Burden Relief and Evaluate Resource Requirements at Alternative Greenhouse Gas 

Permitting Thresholds
41

August 2008.5 As shown in Table 3.2, State, local, and tribal permitting authorities are 

estimated to expend $23,243 per permit to process a new GHG industrial PSD

permit and $16,216 per permit for a new commercial or residential PSD permit. It is assumed 

that permit preparation and issuance for commercial/residential permits require less time to 

prepare and issue than industrial source permits since commercial/residential sources would 

likely be somewhat less complex in terms of numbers and types of emission sources and control 

requirements. Estimates obtained are additional burden and costs to those currently experienced 

by permitting authorities and sources. For more information on the estimates of burden costs for 

PSD permits, see Attachment C. Avoided costs estimates for regulatory alternatives of 25,000 

tpy (proposal level) and 50,000tpy CO2e PTE are also shown in Table 3.2. The PSD estimated 

costs on Table 3.2 represent annual estimates of costs avoided for sources and permitting 

authorities.

Regulatory relief alternatives for Steps 1 and 2 for PSD are shown on Table 3.3. 

Evaluating regulatory alternatives for the approximate 2.5 year time period covered by Steps 1 

and 2 provides comparisons of the threshold levels and the impacts of timing choices for the 

steps. As shown on Table 3.3, regulatory alternatives of 25,000 tpy CO2e, 50,000 tpy CO2e, 

100,000 tpy CO2e, and the ‘anyway’ thresholds are evaluated as if they were implemented for 

the entire two step phase-in period. The 25,000 tpy CO2e and the ‘anyway’ thresholds represent 

the bounding alternatives over the period with the 25,000 tpy CO2e alternative providing the 

least regulatory relief and the ‘anyway’ threshold the greatest. If the 25,000 tpy CO2e were 

implemented for Steps 1 and 2, the regulatory relief for PSD sources would amount to 

approximately $14,998.3 million during the Steps 1 and 2 phase-in period. This regulatory relief 

would be $17,488.3 million over the same period with the ‘anyway’ threshold. All other 

alternatives shown and combinations of regulatory alternatives within the 2.5 year time frame lie 

within the 25,000 tpy CO2e threshold and the ‘anyway’ threshold. The final rule ‘anyway’

threshold for Step 1 and 100,000 tpy CO2e threshold for Step 2 results in PSD regulatory relief of 

$17,290.5 million for the 2.5 year phase-in period.

This rule also alleviates the regulatory burden associated with complying with PSD 

BACT requirements for small new and modifying sources. The BACT costs foregone are not 

 

5

Prevention of Significant Deterioration and Non-Attainment Area New Source Review (Renewal), EPA ICR Number 123.23, 

OMB Control Number 2060-0003, 2008.
42

estimated or shown in Tables 3.2 or 3.3 because of the significant uncertainties involved in these 

requirements for affected sources and lack of sufficient information to estimate these costs 

currently. Likewise, the foregone emission reductions associated with these BACT requirements 

for small sources are not estimated. This issue is discussed further in Section 4 of this RIA. The 

benefits estimates for this rule are subject to limitations and uncertainties that are discussed in 

Section 8 of this RIA. 

Table 3.4 presents the title V and PSD regulatory relief for the full phase-in period of 

approximately five years. The final rule benefits are shown for two alternatives for Step 3, one 

in which Step 3 remains at the Step 2 level and one in which Step 3 becomes the minimum 

threshold of at least 50,000 tpy CO2e previously discussed. These alternatives for Step 3 bound 

the net benefit estimates for the entire phase in period. If Step 3 remains at the Step 2 level, net 

benefits for the five year period are $387,153.4 +B million. This benefit estimate becomes 

$386,724.1 +B million if Step 3 becomes the minimum level of 50,000 tpy for the five year 

phase-in period. The letter B represents the benefits we are not able to quantify in this analysis 

and are discussed in section 8 of this report. Given the short time frame of the impact of this final 

rule, we did not consider the time value of money or discount the benefit and cost estimates 

provided in this report, rather we assume these benefit and cost estimates are occurring currently. 

All benefit dollar estimates shown are based upon 2007$. 
43

Table 3.3 Step 1 and 2 PSD Regulatory Relief (Avoided Costs) for Sources of GHG and Permitting Authorities at Alternative 

Thresholds1,2

Regulatory Relief for Step 1 and 2 Phase-in Period ( January 2, 2011 through July 1, 2013)

Regulatory Alternatives (Avoided Permitting Costs in millions 2007$)

25,000 CO2e tpy 50,000 CO2e tpy 100,000 CO2e tpy

Anyway 

Threshold Anyway/50,000 Anyway/25,000

Final Rule

Activity Anyway/100,000

Sources

New Industrial $3,569.8 $5,110.5 $5,320.0 $5,513.3 $5,191.1 $3,958.5 $5,358.7 

New Commercial/Residential $8,199.3 $8,204.5 $8,208.0 $8,208.8 $8,205.4 $8,201.2 $8,208.2 

Source Total $11,769.0 $13,315.0 $13,528.0 $13,722.0 $13,396.4 $12,159.6 $13,566.8 

Permitting Authority

New Industrial $981.5 $1,405.3 $1,462.8 $1,516.0 $1,427.4 $1,088.4 $1,473.4 

New Commercial/Residential $2,247.8 $2,249.3 $2,250.3 $2,250.3 $2,249.5 $2,248.3 $2,250.3 

Permitting Authority Total $3,229.3 $3,654.5 $3,713.0 $3,766.3 $3,676.9 $3,336.7 $3,723.7 

Total PSD Regulatory Relief $14,998.3 $16,969.5 $17,241.0 $17,488.3 $17,073.3 $15,496.3 $17,290.5 

Benefits are regulatory relief or avoided costs for sources with the potential to emit below the thresholds shown.

1 Avoided costs shown represent the 21⁄2 year estimates of the regulatory burden relief from this rule and for regulatory alternatives for Steps 1 and 2 of the phasein period January 2, 2011 through July 1, 2013. Alternatives 25,000 CO2e tpy, 50,000 CO2e tpy, 100,000 CO2e tpy, and ‘anyway’ assume these thresholds 

remain in effect for 21⁄2 years. Alternatives Anyway/50,000 and Anyway/25,000 assume the Anyway threshold for Step 1 and 50,000 CO2e tpy and 25,000 

CO2e tpy thresholds for Step 2, respectively. Finally the final rule estimates shown in the last column of the table show the Anyway threshold for Step 1 (one 

half year), and the 100,000 CO2e tpy threshold for Step 2 (two years). Sums may not add due to rounding.

2 Attachment C: “Summary of Methodology and Data Used to Estimate Burden Relief and Evaluate Resource Requirements at Alternative Greenhouse Gas 

Permitting Thresholds.”
44

Table 3.4 Benefits of the Final Rule and Step 3 Regulatory Alternatives 

Benefits for the Five Year Period Beginning 

January 2, 2011

Regulatory Alternative (millions 2007$)

Final Rule + Possible Step 3 of

100, 000 tpy CO2e350, 000 tpy CO2e4

Benefits - Regulatory Relief

Sources

 Title V1$247,253.6 $247,145.3

 PSD2$27,094.7 $26,881.8

Total Source Regulatory Relief $274,348.3 $274,027.1

Permitting Authority

 Title V1$105,368.5 $105,318.8

 PSD2$7,436.61 $7,378.1

Total Permitting Authority $112,805.1 $112,696.8

Total Regulatory Relief $387,153.4+B $386,724.1+B

Benefits are regulatory relief for sources with the potential to emit below the thresholds shown.

B - unquantified benefits of the rule include regulatory relief from BACT requirements for PSD sources

1Reflects estimates of regulatory relief or avoided permit burden costs for title V GHG sources and 

permitting authorities.

2 Shows estimates of regulatory relief or avoided permit burden costs for GHG PSD sources and 

permitting authorities.

3 Includes 1⁄2 year of Step 1 (anyway threshold), 41⁄2 years of Step 2 (100,000 threshold), 

4 Includes 1⁄2 year of Step 1 (anyway threshold), 2 years of Step 2 (100,000 threshold), and 21⁄2 years of

Step 3 alternative of 50,000.
45

Section 4

Social Costs

EPA examined the social costs of this final rule. For this rule, the social costs represent 

the foregone environmental benefits that would occur if regulatory relief was not offered to small 

sources of GHG emissions. This action is one of regulatory relief since it increases the emissions 

thresholds for the title V and PSD programs, as they apply to sources of GHG, to levels above 

those in the CAA. Previous sections have discussed the avoided cost of such relief, but there is 

also a social cost imposed by such relief because this rule may forego some of the possible 

benefits associated with title V and PSD programs for sources of GHG emissions below Step 1 

and 2 phase-in thresholds but above the statutory 100/250 tpy levels. These benefits are those 

attributed to title V and PSD permitting programs in general. These benefits are based on the 

relevance of these programs to policymaking, transparency issues, and market efficiency and,

therefore, are very difficult to quantify and monetize. For title V, they include the benefits of 

improved compliance with CAA requirements that stem from (1) improved clarity regarding 

applicability of requirements; (2) discovery and required correction of noncompliance prior to 

receiving a permit; (3) improving monitoring, recordkeeping, and reporting concerning 

compliance status; (4) self-certification of compliance with applicable requirements initially and 

annually, and prompt reporting of deviations from permit requirements; (5) enhanced 

opportunity for the public to understand and monitor sources’ compliance obligations; and (6) 

improved ability of EPA, permitting authorities, and the public to enforce CAA requirements.

However, it is important to remember that a title V permit does not add new requirements 

for pollution control itself but rather collects all of a facility’s applicable requirements under the 

CAA in one permit. Therefore, the compliance benefits above are less when title V permits 

contain few or no CAA applicable requirements. During the first two steps of this phase-in 

period, we expect that the vast majority of sources excluded from title V would be sources that 

have no CAA applicable requirements for GHG emissions and few or no requirements for other 

pollutants because their emissions of those pollutants are so small. For this reason, although it is 

extremely difficult to measure the degree of improved compliance, if any, that would be 

foregone or to quantify the social costs that would be imposed, we expect that they would be 

negligible.
46

For PSD, the primary social cost imposed by the tailoring rule stems from the foregone 

benefit of applying BACT to the tens of thousands of small new sources and modifications that 

will be below our thresholds during the first phase. This social cost potentially weighs against 

the cost savings described above that stem (in part) from avoiding the administrative and control 

costs of applying BACT to these sources. The BACT requirement ensures that when new and 

modified sources increase their emissions they are using state-of-the-art emission controls and 

afford the public an opportunity to comment on the control decision. It does not prohibit 

increases, but it ensures that such controls are applied. Delaying the BACT requirement for 

numerous small sources during the first phase of this rule could allow increases from these 

smaller sources that are greater than they would be if BACT were applied. A detailed analysis of 

this difference is beyond the scope of this rule because we do not have detailed information on 

the universe of these tens of thousands of small PSD actions, the candidate BACT technologies 

for each of them, how permitting authorities would make the BACT decisions, and how the 

BACT limit would compare to what would otherwise be installed absent BACT. Below we 

present an illustrative example of how BACT impacts might be determined for sources that 

would be excluded from review under the tailoring rule. This example illustrates the difficulty in 

quantifying the social costs of avoided BACT but helps explain the nature of such costs.

To assess the effect of avoided BACT, we would identify the universe of source types 

that are affected by the tailoring rule. More specifically, we would have to project the number of 

various source types (within those affected by the tailoring rule) that would actually be 

constructing or modifying. We have generally characterized these sources as part of the tailoring 

rule threshold evaluation and have determined a large proportion of these to consist of small 

commercial and residential sources. This determination was based on rough energy usage data, 

but to assess BACT, we would require more specific information about the proposed equipment 

that will actually be emitting GHG (e.g., water heaters, furnaces, cooking equipment, dryers),

and more specific characterization would be subject to a very high degree of uncertainty.

Following characterization of new and modified sources, we would need to determine, 

for each category of source, what GHG control technologies are available for such equipment. 

For commercial sources, we may have to determine commercial availability of a range of lower 

emitting processes, more efficient technologies, and other techniques for improving energy

efficiency. Next, we would assess affected sources’ capital and operating costs of control 
47

options and determine energy and environmental impacts. Finally, we would need to apply

judgment (as the permitting authority would do in each case) to select the technology that 

represented the maximum degree of control taking the costs, energy, and environmental impacts 

into account.

The social cost component of the impact of foregoing BACT for sources that construct or 

modify during the first phase would be represented by the difference between the increased 

emissions that would result from such sources absent BACT and the increase that would be 

allowed under the BACT requirement. However, although we can point to the existence of such 

differences, we cannot quantify them (though as explained below we expect that overall they will 

be very limited in scope and magnitude). Since there has been no regulatory experience with 

controlling GHG emissions from these sources, and limited permitting experience of any kind 

with mandatory control requirements on smaller commercial and residential sources, we are not 

in a position at this point to identify the specific control technologies and quantify this difference 

to estimate the greater increases that might occur in the absence of applying the BACT process to 

these sources across the country. In addition, since the PSD BACT review and selection process 

is implemented on a case-by-case basis, there is additional uncertainty in predicting programwide reductions because even for similar sources, permitting authorities may ultimately weigh 

the BACT factors differently and adopt different control measures. 

For all these reasons, it is not possible at this time to quantify the social costs of avoided 

BACT. However, we note that the universe of possible emissions that would be regulated by

sources excluded under the tailoring rule is small compared to those that would remain subject to 

PSD. The sources excluded in the first steps of this phased-in rule comprise only 11 percent of 

total stationary source GHG emissions, while 68 percent remain subject to regulation. The 

remaining fraction of stationary GHG source emissions come from sources below statutory CAA 

thresholds of 100/250 tons per year. Furthermore, we expect the emissions differences due to 

BACT controls for sources excluded by the tailoring rule to be relatively small because of the 

lack of available cost-effective capture and control technologies for GHG at such sources that are 

akin to those that exist for conventional pollutants and large sources, as well as the likelihood 

that even in the absence of BACT such sources would already be installing relatively efficient 

GHG technologies to save on fuel costs. Thus, although potential benefits would be foregone by

excluding smaller sources from the permitting programs, these benefits are likely to be small. 
48

Under the tailoring rule, we will work during the 6-year period to greatly improve our 

understanding of both the administrative costs of regulating and the social costs of not regulating 

smaller sources under PSD and title V, and we will rely on that information to support our future 

threshold analyses called for under the rule. 

Since EPA is unable to quantify these GHG emission reductions foregone at this time 

because of these uncertainties involved in this estimation, it is also not possible to provide a 

monetized estimate of the foregone benefits or social costs of this rule. If such emission 

reductions foregone were quantified, EPA could use the social cost of carbon benefit estimates 

such as those used in the “Rulemaking to Establish Light Duty Vehicle Greenhouse Gas 

Emission Standards and Corporate Average Fuel Economy Standards”6recently published to 

compute the dollar value associated with the social costs of this rule. Nonetheless, we expect 

that the value would be small because, as discussed above, the emissions differences from which 

this value would be computed are small.

In reaching the decisions for this GHG tailoring rule, EPA recognizes the GHG emissions 

can remain in the atmosphere for decades to centuries, meaning that their concentrations become 

well mixed throughout the global atmosphere regardless of emission origin, and their effects on 

climate are long lasting and significant. A detailed explanation of climate change and its impact 

on health, society, and the environment is included in EPA’s technical support document for the 

endangerment finding (Docket ID No. EPA-HQ-OAR-2009-0171). EPA recognizes the 

importance of reducing climate change emissions for all sources of GHG emissions, including 

those sources afforded regulatory relief in this rule, and plans to address potential emission 

reductions from these small sources using voluntary and energy efficiency approaches. 

Elsewhere, we have discussed EPA’s interest in continuing to use regulatory and/or 

nonregulatory tools for reducing emissions from smaller GHG sources because we believe that 

these tools will likely result in more efficient and cost-effective regulation than would case-bycase permitting.

 

6 U.S. EPA 2010. Rulemaking to Establish Light Duty Vehicle Greenhouse Gas Emission Standards and Corporate 

Average Fuel Economy Standards. EPA-HQ-OAR-2009-0472. 

http://www.epa.gov/otaq/climate/regulations/ghg-preamble-regs.pdf.
49

Section 5

Net Benefits 

The net benefits of this GHG tailoring rule represent the difference between the benefits 

and costs of this rule to society. This section presents the net benefits of the final rule and other 

regulatory alternatives. As discussed in Section 3, this rule is one of regulatory relief and the 

benefits to society are estimates the regulatory relief (avoided permit burden costs) to sources 

and permitting authorities for Steps 1 and 2 of the phase-in period. Within this RIA we are 

providing an illustrative monetary estimate of statutory permitting requirements to show the 

magnitude of the savings that hypothetically result from this rulemaking. While we believe it is 

impossible to implement these permit requirements by January 2, 2011 for the reasons laid out in 

the preamble, it is useful to understand the scale of what the burden may have been. For sake of 

simplicity, we refer to this illustrative monetary estimate as the monetized benefits of the 

regulatory relief presented by this rulemaking or regulatory relief benefits for brevity. The social 

costs of the rule are the foregone environmental benefits in the form of potential GHG emission 

reductions that could occur during the phase-in period and are discussed in Section 4. 

This rulemaking provides regulatory relief for a phase-in period of approximately 5 years 

to smaller sources of GHG by phasing in the statutory permitting threshold at levels above 

statutory requirements. This final rule establishes thresholds and PSD significance levels for 

Steps 1 and 2 of the phase-in period (the 2.5 year period between January 2, 2011 and July 1, 

2013), commits to considering a further Step 3, and indicates floor title V and PSD threshold 

levels from July 1, 2013 through April 30, 2016. While the EPA commits to undertake a 

rulemaking for a further Step 3, the ultimate outcome for sources of GHG from this additional 

rulemaking is unknown at this time. 

Annual estimates for the final rule Steps 1 and 2 and regulatory alternatives are presented 

in Table 5.1. As Table 5.1 indicates, the annual net benefits associated with the final rule Step 1 

are $77,530.2 million +B-C and for Step 2 are $77,416.2 +B-C million annually, where B 

denotes the unquantified benefits and C the quantified costs of this final rule. These unquantified 

benefits and costs are discussed in more detail in the limitations and uncertainties Section 8 of 

this report. Table 5.2 shows the final rule Steps 1 and 2 with regulatory alternatives for the two 

and one-half year phase-in period January 2, 2011 through July 1, 2013. The net benefits of the 

final rule for Steps 1 and 2 are $193,597.5+B-C million for the two and one-half year period. 
50

Finally, Table 5.3 presents the final rule net benefits with two alternatives for Step 3, one in 

which Step 3 remains at the Step 2 level of 100, 000 tpy CO2e and one in which Step 3 becomes 

the minimum threshold of at least 50,000 tpy CO2e previously discussed. These alternatives for 

Step 3 bound the net benefit estimates for the entire phase in period. If Step 3 remains at the 

Step 2 level, net benefits for the five year period are $387,153.4 +B-C million. This net benefit 

estimate becomes $386,724.1 +B-C million if Step 3 becomes the minimum level of 50,000 tpy

CO2e threshold for the five year phase-in period. Given the short time frame of the impact of this 

final rule, we did not consider the time value of money or discount the benefit and cost estimates 

provided in this report, rather we assume these benefit and cost estimates are occurring currently. 

All dollar estimates shown are based upon 2007$. 

Table 5.1 Annual Net Benefits for GHG Tailoring Rule Regulatory Alternatives

Annual Benefits and Costs for Regulatory Alternatives (millions of 2007$)3

Final Rule Step 1 Final Rule Step 2

Anyway 100,000 tpy CO2e 50,000 tpy CO2e 25,000 tpy CO2e

Benefits - Regulatory Relief

Sources

 Title V1$49,457.3 $49,447.4 $49,403.8 $49,334.2

 PSD2$5,488.8 $5,411.2 $5,326.0 $4,707.6

Total Source Regulatory Relief $54,946.1 $54,858.6 $54,729.8 $54,041.8

Permitting Authority

 Title V1$21,077.6 $21,072.4 $21,052.8 $21,014.9

 PSD2$1,506.5 $1,485.2 $1,461.8 $1,291.7

Total Permitting Authority $22,584.1 $22,557.6 $22,514.6 $22,306.6

Total Regulatory Relief $77,530.2+B $77,416.2+B $77,244.4+B $76,348.4+B

Costs - Foregone GHG Emission Reductions

 Title V & PSD C C C C

Net Benefits3$77,530.2+B-C $77,416.2+B-C $77,244.4+B-C $76,348.4+B-C

Benefits are regulatory relief or avoided permit costs for sources with the annual potential to emit less than the threshold shown.

B - unquantified benefits of the rule include regulatory relief from BACT requirements for PSD sources

C - unquantified social costs of tailoring rule represents economic value of foregone environmental benefits 

(possible GHG emission reductions) during Step 1 and 2 of the phase in period. Potential foregone GHG emission reductions during the 

phase-in period are not known at this time. See Section 4 of the RIA for a qualitative discussion of the social costs of the rule.

1Reflects estimates of regulatory relief or avoided permit burden costs for title V GHG sources and permitting authorities.

2 Shows estimates of regulatory relief or avoided permit burden costs for GHG PSD sources and permitting authorities.

3 Totals may not sum due to rounding.
51

Table 5.2. Net Benefits of the Final GHG Tailoring Rule and Regulatory Alternatives

Step 1 and 2 Phase-In Period (January 2, 2011- July 1, 2013)

Regulatory Alternatives (millions of 2007$)

Anyway3

100,000 tpy 

CO2e3

50,000 tpy 

CO2e3

25,000 tpy 

CO2e3 Anyway/50,0004 Anyway/25,0005 Final Rule6

Benefits - Regulatory Relief

Sources

 Title V1$123,643.3 $123,618.5 $123,509.5 $123,335.5 $123,536.3 $123,397.1 $123,623.5

 PSD2$13,722.0 $13,528.0 $13,315.0 $11,769.0 $13,396.4 $12,159.6 $13,566.8

Total Source Regulatory Relief $137,365.3 $137,146.5 $136,824.5 $135,104.5 $136,932.8 $135,556.6 $137,190.3

Permitting Authority

 Title V1$52,694.1 $52,681 $52,631.9 $52,537.3 $52,644.3 $52,568.7 $52,683.6

 PSD2$3,766.3 $3,713.0 $3,654.5 $3,229.3 $3,676.8 $3,336.7 $3,723.6

Total Permitting Authority $56,460.4 $56,393.9 $56,286.3 $55,766.7 $56,321.1 $55,905.4 $56,407.2

Total Regulatory Relief $193,825.6+B $193,540.4+B $193,110.9+B $190,871.1+B $193,253.9+B $191,462.0+B $193,597.5+B

Costs - Foregone GHG Emission 

Reductions

 Title V & PSD C C C C C C C

Net Benefits $193,825.6+B-C $193,540.4+B-C $193,110.9+B-C $190,871.1+B-C $193,253.9+B-C $191,462.0+B-C $193,597.5+B-C

Benefits represent regulatory relief for those sources with the annual potential to emit less than the threshold shown. 

B - unquantified benefits of the rule include regulatory relief from BACT requirements for PSD sources

C - unquantified social costs of tailoring rule represents economic value of foregone environmental benefits (potential GHG emission reductions) during Step 1 and 2 of the phase in 

period. Foregone GHG emission reductions are not known at this time. See Section 4 of the RIA for a qualitative discussion of the social costs of the rule.

1Reflects estimates of regulatory relief or avoided permit burden costs for title V GHG sources and permitting authorities.

2 Shows estimates of regulatory relief or avoided permit burden costs for GHG PSD sources and permitting authorities.

3 Shows alternative as single step for the 21⁄2.year phase-in period for 'anyway', 100,000 tpy CO2e, 50,000 tpy CO2e, and 25,000 tpy CO2 e thresholds respectively.

4 Includes Step 1 for one-half year and 50,000 tpy CO2e threshold for two years. 

5 Includes Step 1 for one-half year and 25,000 tpy CO2e threshold for two years.

6 Phase-in period for final rule includes 1/2 year of Step 1 ‘anyway’ threshold and 2 years of Step 2 100,000 tpy CO2e threshold.
52

Table 5.3 Net Benefits of the Final Rule and Step 3 Regulatory Alternatives

Regulatory Alternatives (millions 2007$)

Final Rule + Possible Step 3 (five year period)

100, 000 tpy CO2e350, 000 tpy CO2e4

Benefits - Regulatory Relief

Sources

 Title V1$247,253.6 $247,144.1

 PSD2$27,094.7 $26,881.8

Total Source Regulatory Relief $274,348.3 $274,025.9

Permitting Authority

 Title V1$105,368.5 $105,320.2

 PSD2$7,436.61 $7,378.1

Total Permitting Authority $112,805.1 $112,698.2

Total Regulatory Relief $387,153.4+B $386,724.1+B

Costs - Foregone GHG Emission 

Reductions

Title V & PSD C C

Net Benefits $387,153.4+B-C $386,724.1+B-C

Benefits are regulatory relief for sources with the annual potential to emit less than the thresholds shown.

B - unquantified benefits of the rule include regulatory relief from BACT requirements for PSD sources

C - unquantified social costs of tailoring rule represents economic value of foregone environmental benefits 

(potential GHG emission reductions) during Step 1, 2,and 3 of the phase in period. 

Foregone GHG emission reductions are not known at this time. 

See Section 4 of the RIA for a qualitative discussion of the social costs of the rule.

1Reflects estimates of regulatory relief or avoided permit burden costs for title V GHG sources and permitting 

authorities.

2 Shows estimates of regulatory relief or avoided permit burden costs for GHG PSD sources and permitting 

authorities.

3 Includes 1⁄2 year of Step 1 (anyway threshold), 2 years of Step 2 (100,000 threshold), and 21⁄2 years of Step 3 

(alternative of 100,000 threshold). Covers five year period beginning January 2, 2011.

4 Includes 1⁄2 year of Step 1 (anyway threshold), 2 years of Step 2 (100,000 threshold), 

and 21⁄2 years of Step 3 (alternative of 50,000 threshold). Covers five year period beginning January 2, 2011.
53

Section 6

Impacts of Regulatory Relief

This final rulemaking does not impose economic impacts on any sources or permitting 

authorities but should instead be viewed as regulatory relief for smaller GHG emission sources. 

This RIA illustrates the burden impacts avoided as a result of this rule. The avoided impacts of 

extending these programs for State, local, and tribal permitting authorities are also reported. To 

estimate the avoided economic impacts, which include small business impacts, EPA estimated

cost-to-sales ratios by comparing the estimated total annualized compliance cost per permit per 

source avoided to industry average revenues per establishment. EPA also evaluated cost-to-sales

ratios by comparing avoided burden costs to revenues of firms at different firm size categories,

recognizing that the sources required to comply with these CAA permit provisions during the 

phase-in period are larger emissions sources and more likely to be large business entities. 

6.1 Method for Analyzing Avoided Economic and Small Entity Impacts

EPA used cost-to-sales comparisons to evaluate the potential impacts to sources affected 

by this rule. Since this regulatory action provides regulatory relief, these cost-to-sales ratios 

represent the economic impacts that are avoided or postponed for small GHG sources as a result 

of this rule. For all regulatory actions, EPA must determine whether a rule will have a 

significant impact on a substantial number of small entities (SISNOSE). This rule provides 

regulatory relief to small sources and thus does not have a significant impact on a substantial 

number of small entities. The approach for estimating the postponed or avoided economic 

impacts and the small entity analysis are the same for this analysis. The steps followed include 

gathering data to characterize the affected entities by size, selecting and describing the measures 

and economic impact thresholds used in the analysis, and determining cost-to-sales ratios for the 

affected industrial, commercial, and residential categories.

6.1.1 Identifying Affected Sectors and Entities

The industrial, commercial, and residential sectors covered by the rule were identified 

during the development of the cost analysis for the rule. For the industrial sector, these sources 

are summarized with applicable NAICS codes in Tables 6.0 through 6.3. For commercial and 

residential sources, the sources are listed in Tables 6.4 through 6.7. 
54

6.1.2 Data Used to Characterize Affected Entities by Size

The Census Bureau’s Statistics of U.S. Businesses (SUSB) data provide national 

information on the distribution of economic variables by industry and size.7Specifically, the 

tables report data for each industry on the number of firms (Table 6.0), number of establishments 

(Table 6.1), employment (Table 6.2), and receipts (Table 6.3) by enterprise size category in 

affected sectors. Similar results are shown for commercial and residential sources in Tables 6.4

through 6.7. The census definitions in these data elements are as follows:

 establishment: An establishment is a single physical location where business is 

conducted or where services or industrial operations are performed. 

 employment: Paid employment consists of full- and part-time employees, including 

salaried officers and executives of corporations, who were on the payroll in the pay

period including March 12. Included are employees on sick leave, holidays, and 

vacations; not included are proprietors and partners of unincorporated businesses.

 receipts: Receipts (net of taxes) are defined as the revenue for goods produced, 

distributed, or services provided, including revenue earned from premiums, 

commissions and fees, rents, interest, dividends, and royalties. Receipts exclude all 

revenue collected for local, state, and federal taxes. 

 enterprise: An enterprise is a business organization consisting of one or more 

domestic establishments that were specified under common ownership or control. The 

enterprise and the establishment are the same for single-establishment firms. Each 

multiestablishment company forms one enterprise—the enterprise employment and 

annual payroll are summed from the associated establishments. Enterprise size 

designations are determined by the summed employment of all associated 

establishments.8

The SBA small business size standard(s) is provided for each industry group in order to facilitate 

comparisons and different thresholds. 

The receipt data are reported in 2002 dollars. Therefore, to adjust to 2007 dollars for 

comparison to costs, EPA used the U.S. Bureau of Labor Statistics’ consumer price index (CPI). 

Using the annual U.S. city average price index for all consumer goods, EPA adjusted revenues to 

2007 dollars. 

 

7 These data were developed in cooperation with, and partially funded by, the Office of Advocacy of the Small 

Business Administration (SBA).

8 Because the SBA’s business size definitions (SBA, 2008c) apply to an establishment’s “ultimate parent company,”

we assume in this analysis that the “enterprise” definition above is consistent with the concept of ultimate parent 

company that is typically used for Small Business Regulatory Enforcement Fairness Act (SBREFA) screening 

analyses and the terms are used interchangeably.
55

Table 6.0. Number of Firms by Industry and Enterprise Size: 2002

Sector Source Category NAICS

SBA Size 

Standard

Total 

Firms

<20 

Employees

20 to 99 

Employees

100 to 499 

Employees

500 to 749 

Employees

750 to 999 

Employees

1,000 to 

1,499 

Employees

Electricity 

Generating 

Units

Electricity Generating Units 22 17,603 5,636 901 288 26 18 19

Industrial Adipic Acid Production 325199 1,000 443 157 95 59 16 3 10 

Industrial Aluminum Production 331312 1,000 43 28 2 3 1 1 NA

Industrial Ammonia Manufacturing 325311 1,000 130 78 18 6 2 1 7 

Industrial Cement Production 327310 750 136 67 21 12 6 3 4 

Industrial Electronics Manufacturing 334 213,833 7,698 3,291 1,149 150 80 86 

Industrial Ferroalloy Production 331112 750 14 3 NA 5 NA 1 1 

Industrial Glass Production 327 500–1,000 11,395 7,108 2,553 590 57 51 32 

Industrial HCFC-22 Production 325120 1,000 87 45 12 8 NA 3 2 

Industrial Hydrogen Production 325120 1,000 87 45 12 8 NA 3 2 

Industrial Iron and Steel Production 331111 1,000 1,135 687 166 53 9 12 11 

Industrial Lead Production 3314 750–1,000 760 384 161 74 14 8 5 

Industrial Lime Manufacturing 327410 500 41 16 10 4 1 2 1 

Industrial Magnesium Production 3314 750–1,000 760 384 161 74 14 8 5 

Industrial Nitric Acid Production 325311 1,000 130 78 18 6 2 1 7 

Industrial Petrochemical Production 3251 500–1,000 1,145 475 277 131 29 14 20 

Industrial Petroleum Refineries 324110 3202 84 24 23 6 3 3 

Industrial Phosphoric Acid Production 325312 500 35 12 5 6 1 NA 2 

Industrial Pulp and Paper Manufacturing 3221 750 338 96 55 72 7 12 12 

Industrial Silicon Carbide Production 327910 500 299 161 94 25 2 NA NA

Industrial Soda Ash Manufacturing 325181 1,000 25 10 5 2 NA 1 1 

Industrial Titanium Dioxide Production 325188 1,000 367 139 92 43 11 6 3 

Industrial Zinc Production 3314 750–1,000 760 384 161 74 14 8 5 

Industrial Ethanol Production 325193 1,000 60 19 16 3 1 NA 3 

Industrial Food Processing 311 500–1,000 21,384 13,645 3,935 1,247 147 63 96 

Energy Underground Coal Mines 21211 500 802 387 246 67 6 6 3 

Energy Oil and Natural Gas Systems 211 500 6,317 5,184 354 89 13 11 5 

(continued)
56

Table 6.0. Number of Firms by Industry and Enterprise Size: 2002 (continued)

Sector Source Category NAICS

SBA Size 

Standard

Total 

Firms

<20 

Employees

20 to 99 

Employees

100 to 499 

Employees

500 to 749 

Employees

750 to 999 

Employees

1,000 to 

1,499 

Employees

Energy Oil and Natural Gas Systems 486 4244 110 22 16 8 3 2 

Waste 

Treatment

Landfills 562 $12.5 

million

14,184 10,726 1,616 258 22 11 15 

Waste 

Treatment

MWCs 562 $12.5 

million

14,184 10,726 1,616 258 22 11 15 

The Census Bureau defines an enterprise as a business organization consisting of one or more domestic establishments that were specified under common 

ownership or control. The enterprise and the establishment are the same for single-establishment firms. Each multiestablishment company forms one enterprise—

the enterprise employment and annual payroll are summed from the associated establishments. Enterprise size designations are determined by the summed 

employment of all associated establishments.

Since the SBA’s business size definitions (http://www.sba.gov/size) apply to an establishment’s ultimate parent company, we assume in this analysis that the 

enterprise definition above is consistent with the concept of ultimate parent company that is typically used for SBREFA screening analyses. SBA size standards 

as of 8/11/08.

1 NAICS codes 221111, 221112, 221113, 221119, 221121, 221122: A firm is small if, including its affiliates, it is primarily engaged in the generation, 

transmission, and/or distribution of electric energy for sale and its total electric output for the preceding fiscal year did not exceed 4 million megawatt hours.

2 NAICS Subsectors 333, 334, 335 and 336: For rebuilding machinery or equipment on a factory basis, or equivalent, use the NAICS code for a newly 

manufactured product. Concerns performing major rebuilding or overhaul activities do not necessarily have to meet the criteria for being a “manufacturer”

although the activities may be classified under a manufacturing NAICS code. Ordinary repair services or preservation are not considered rebuilding.

3 500 to 1,500. For NAICS code 324110: For purposes of Government procurement, the petroleum refiner must be a concern that has 1,500 employees or fewer 

or has 125,000 barrels per calendar day or less total Operable Atmospheric Crude Oil Distillation capacity. Capacity includes owned or leased facilities as well as 

facilities under a processing agreement or an arrangement such as an exchange agreement or a throughput. The total product to be delivered under the contract 

must be at least 90 percent refined by the successful bidder from either crude oil or bona fide feedstocks.

4 Subsector 486: Pipeline Transportation (486110 Pipeline Transportation of Crude Oil 1,500, 486210 Pipeline Transportation of Natural Gas $7.0 million, 

486910 Pipeline Transportation of Refined Petroleum Products 1,500, 486990 All Other Pipeline Transportation $34.5 million).
57

Table 6.1. Number of Establishments by Affected Industry and Enterprise Size: 2002

Sector Source Category NAICS

SBA Size 

Standard

Total 

Establishments<20 

Employees

20 to 99 

Employees

100 to 499 

Employees

500 to 749 

Employees

750 to 999 

Employees

1,000 to 

1,499 

Employees

Electricity 

Generating 

Units

Electricity Generating Units 22 118,432 5,715 1,423 1,126 282 144 209 

Industrial Adipic Acid Production 325199 1,000 640 157 99 78 24 4 17 

Industrial Aluminum Production 331312 1,000 50 28 2 4 1 1 NA

Industrial Ammonia Manufacturing 325311 1,000 157 78 18 15 5 1 12 

Industrial Cement Production 327310 750 253 67 29 22 11 9 20 

Industrial Electronics Manufacturing 334 215,883 7,709 3,435 1,497 282 130 174 

Industrial Ferroalloy Production 331112 750 17 3 NA 7 NA 1 1 

Industrial Glass Production 327 500–1,000 16,674 7,161 3,302 1,788 306 438 337 

Industrial HCFC-22 Production 325120 1,000 551 45 20 20 NA 30 55 

Industrial Hydrogen Production 325120 1,000 551 45 20 20 NA 30 55 

Industrial Iron and Steel Production 331111 1,000 1,242 690 169 62 9 19 18 

Industrial Lead Production 3314 750–1,000 958 386 174 108 24 14 11

Industrial Lime Manufacturing 327410 500 77 18 13 6 7 19 4 

Industrial Magnesium Production 3314 750–1,000 958 386 174 108 24 14 11 

Industrial Nitric Acid Production 325311 1,000 157 78 18 15 5 1 12 

Industrial Petrochemical Production 3251 500–1,000 2,287 478 316 231 68 63 97 

Industrial Petroleum Refineries 324110 3349 85 29 28 10 7 3

Industrial Phosphoric Acid Production 325312 500 50 12 5 6 2 NA 2 

Industrial Pulp and Paper Manufacturing 3221 750 628 97 55 88 13 34 21 

Industrial Silicon Carbide Production 327910 500 347 161 100 42 2 NA NA

Industrial Soda Ash Manufacturing 325181 1,000 38 10 5 4 NA 1 1 

Industrial Titanium Dioxide Production 325188 1,000 611 141 111 69 38 25 6 

Industrial Zinc Production 3314 750–1,000 958 386 174 108 24 14 11 

Industrial Ethanol Production 325193 1,000 66 20 16 5 1 NA 4 

Industrial Food Processing 311 500–1,000 25,698 13,719 4,254 1,951 370 211 319 

Energy Underground Coal Mines 21211 500 1,194 390 279 138 23 20 24 

(continued)
58

Table 6.1. Number of Establishments by Affected Industry and Enterprise Size: 2002 (continued)

Sector Source Category NAICS

SBA Size 

Standard

Total 

Establishments<20 

Employees

20 to 99 

Employees

100 to 499 

Employees

500 to 749 

Employees

750 to 999 

Employees

1,000 to 

1,499 

Employees

Energy Oil and Natural Gas Systems 211 500 7,629 5,239 456 292 60 64 31 

Energy Oil and Natural Gas Systems 486 42,701 110 59 79 115 5 42 

Waste 

Treatment

Landfills 562 $12.5 

million

17,698 10,775 1,839 612 86 63 58

Waste 

Treatment

MWCs 562 $12.5 

million

17,698 10,775 1,839 612 86 63 58 

The Census Bureau defines an enterprise as a business organization consisting of one or more domestic establishments that were specified under common 

ownership or control. The enterprise and the establishment are the same for single-establishment firms. Each multiestablishment company forms one 

enterprise—the enterprise employment and annual payroll are summed from the associated establishments. Enterprise size designations are determined by the 

summed employment of all associated establishments.

Since the SBA’s business size definitions (http://www.sba.gov/size) apply to an establishment’s ultimate parent company, we assume in this analysis that the 

enterprise definition above is consistent with the concept of ultimate parent company that is typically used for SBREFA screening analyses. SBA Small Entity 

standards as of 8/11/08.

1 NAICS codes 221111, 221112, 221113, 221119, 221121, 221122: A firm is small if, including its affiliates, it is primarily engaged in the generation, 

transmission, and/or distribution of electric energy for sale and its total electric output for the preceding fiscal year did not exceed 4 million megawatt hours.

2 NAICS Subsectors 333, 334, 335 and 336: For rebuilding machinery or equipment on a factory basis, or equivalent, use the NAICS code for a newly 

manufactured product. Concerns performing major rebuilding or overhaul activities do not necessarily have to meet the criteria for being a “manufacturer”

although the activities may be classified under a manufacturing NAICS code. Ordinary repair services or preservation are not considered rebuilding.

3

500 to 1,500. For NAICS code 324110: For purposes of Government procurement, the petroleum refiner must be a concern that has 1,500 employees or fewer 

and has 125,000 barrels or less per calendar day total Operable Atmospheric Crude Oil Distillation capacity. Capacity includes owned or leased facilities as 

well as facilities under a processing agreement or an arrangement such as an exchange agreement or a throughput. The total product to be delivered under the 

contract must be at least 90 percent refined by the successful bidder from either crude oil or bona fide feedstocks.

4

Subsector 486: Pipeline Transportation (486110 Pipeline Transportation of Crude Oil 1,500, 486210 Pipeline Transportation of Natural Gas $7.0 million, 

486910 Pipeline Transportation of Refined Petroleum Products 1,500, 486990 All Other Pipeline Transportation $34.5 million).
59

Table 6.2. Number of Employees by Affected Industry and Enterprise Size: 2002

Sector Source Category NAICS

SBA Size 

Standard

Total 

Establishments<20 

Employees

20 to 99 

Employees

100 to 499 

Employees

500 to 749 

Employees

750 to 999 

Employees

1,000 to 

1,499 

Employees

Electricity 

Generating 

Units

Electricity Generating Units 22 1648,254 24,257 39,391 46,942 12,042 6,519 14,653

Industrial Adipic Acid Production 325199 1,000 73,342 1,023 2,412 3,232 NA 754 NA

Industrial Aluminum Production 331312 1,000 10,158 38 NA NA NA NA NA

Industrial Ammonia Manufacturing 325311 1,000 4,949 363 210 NA NA NA NA

Industrial Cement Production 327310 750 16,905 493 418 1,157 NA NA 2,051 

Industrial Electronics Manufacturing 334 21,300,411 50,279 139,966 186,772 53,138 33,589 43,361 

Industrial Ferroalloy Production 331112 750 2,266 NA NA NA NA NA NA

Industrial Glass Production 327 500–1,000 475,476 47,315 98,637 85,569 17,516 17,946 17,512 

Industrial HCFC-22 Production 325120 1,000 9,557 88 294 510 NA NA NA

Industrial Hydrogen Production 325120 1,000 9,557 88 294 510 NA NA NA

Industrial Iron and Steel Production 331111 1,000 124,703 1,434 6,235 3,227 1,456 NA NA

Industrial Lead Production 3314 750–1,000 64,203 2,421 6,680 10,407 NA NA 1,337 

Industrial Lime Manufacturing 327410 500 4,393 33 227 NA NA NA NA

Industrial Magnesium Production 3314 750–1,000 64,203 2,421 6,680 10,407 NA NA 1,337 

Industrial Nitric Acid Production 325311 1,000 4,949 363 210 NA NA NA NA

Industrial Petrochemical Production 3251 500–1,000 172,964 3,171 10,392 16,525 5,548 3,354 5,001 

Industrial Petroleum Refineries 324110 362,132 454 942 2,870 2,903 NA NA

Industrial Phosphoric Acid 325312 500 6,288 27 NA NA NA NA NA

Industrial Pulp and Paper 3221 750 162,988 537 2,279 12,554 2,782 7,707 7,121

Industrial Silicon Carbide Production 327910 500 16,079 1,237 3,637 3,536 NA NA NA

Industrial Soda Ash Manufacturing 325181 1,000 4,483 56 NA NA NA NA NA

Industrial Titanium Dioxide Production 325188 1,000 49,845 566 881 1,839 NA NA NA

Industrial Zinc Production 3314 750–1,000 64,203 2,421 6,680 10,407 NA NA 1,337 

Industrial Ethanol Production 325193 1,000 64,203 2,421 6,680 10,407 NA NA 1,337 

Industrial Food Processing 311 500–1,000 1,735 NA NA NA NA NA NA

Energy Underground Coal Mines 21211 500 1,443,766 85,850 156,158 218,041 67,104 30,099 72,262

(continued)
60

Table 6.2. Number of Employees by Affected Industry and Enterprise Size: 2002 (continued)

Sector Source Category NAICS

SBA Size 

Standard

Total 

Establishments<20 

Employees

20 to 99 

Employees

100 to 499 

Employees

500 to 749 

Employees

750 to 999 

Employees

1,000 to 

1,499 

Employees

Energy Oil and Natural Gas Systems 211 500 74,915 2,801 10,205 11,576 NA 1,773 NA

Energy Oil and Natural Gas Systems 486 488,280 19,336 12,113 11,656 2,421 3,551 1,061

Waste 

Treatment

Landfills 562 $12.5 

million

300,580 56,529 59,245 37,530 5,122 3,401 3,645

Waste 

Treatment

MWCs 562 $12.5 

million

300,580 56,529 59,245 37,530 5,122 3,401 3,645 

The Census Bureau defines an enterprise as a business organization consisting of one or more domestic establishments that were specified under common 

ownership or control. The enterprise and the establishment are the same for single-establishment firms. Each multi-establishment company forms one 

enterprise—the enterprise employment and annual payroll are summed from the associated establishments. Enterprise size designations are determined by the 

summed employment of all associated establishments.

Since the SBA’s business size definitions (http://www.sba.gov/size) apply to an establishment’s ultimate parent company, we assume in this analysis that the 

enterprise definition above is consistent with the concept of ultimate parent company that is typically used for SBREFA screening analyses. SBA small entity 

definitions as of 8/11/08.

1 NAICS codes 221111, 221112, 221113, 221119, 221121, 221122: A firm is small if, including its affiliates, it is primarily engaged in the generation, 

transmission, and/or distribution of electric energy for sale and its total electric output for the preceding fiscal year did not exceed 4 million megawatt hours.

2 NAICS Subsectors 333, 334, 335 and 336: For rebuilding machinery or equipment on a factory basis, or equivalent, use the NAICS code for a newly 

manufactured product. Concerns performing major rebuilding or overhaul activities do not necessarily have to meet the criteria for being a “manufacturer”

although the activities may be classified under a manufacturing NAICS code. Ordinary repair services or preservation are not considered rebuilding.

3

500 to 1,500. For NAICS code 324110: For purposes of Government procurement, the petroleum refiner must be a concern that has 1,500 employees or 

fewer or 125,000 barrels or less per calendar day total Operable Atmospheric Crude Oil Distillation capacity. Capacity includes owned or leased facilities as 

well as facilities under a processing agreement or an arrangement such as an exchange agreement or a throughput. The total product to be delivered under the 

contract must be at least 90 percent refined by the successful bidder from either crude oil or bona fide feedstocks.

4

Subsector 486: Pipeline Transportation (486110 Pipeline Transportation of Crude Oil 1,500, 486210 Pipeline Transportation of Natural Gas $7.0 million, 

486910 Pipeline Transportation of Refined Petroleum Products 1,500, 486990 All Other Pipeline Transportation $34.5 million).
61

Table 6.3. Receipts by Industry and Enterprise Size: 2002 (in millions of 2007$)

Sector Source Category NAICS

SBA Size 

Standard

Total 

Receipts

($)

<20 

Employees

20 to 99 

Employees

100 to 499 

Employees

500 to 749 

Employees

750 to 999 

Employees

1,000 to 

1,499 

Employees

Electricity 

Generating 

Units

Electricity Generating Units 22 1456,494 10,324 28,259 29,111 8,522 5,211 11,027 

Industrial Adipic Acid Production 325199 1,000 54,024 437 880 2,117 NA 984 NA

Industrial Aluminum Production 331312 1,000 4,165 7 NA NA NA NA NA

Industrial Ammonia Manufacturing 325311 1,000 3,844 152 60 NA NA NA NA

Industrial Cement Production 327310 750 8,358 207 120 526 NA NA 992 

Industrial Electronics Manufacturing 334 2437,886 9,887 26,268 41,653 14,340 8,589 12,994 

Industrial Ferroalloy Production 331112 750 1,008 NA NA NA NA NA NA

Industrial Glass Production 327 500–1,000 110,002 7,430 17,700 16,967 4,154 4,000 4,366 

Industrial HCFC-22 Production 325120 1,000 6,662 25 337 82 NA NA NA

Industrial Hydrogen Production 325120 1,000 6,662 25 337 82 NA NA NA

Industrial Iron and Steel Production 331111 1,000 54,363 275 1,237 1,192 639 NA NA

Industrial Lead Production 3314 750–1,000 24,584 582 2,391 3,007 NA NA 364

Industrial Lime Manufacturing 327410 500 1,173 7 64 NA NA NA NA

Industrial Magnesium Production 3314 750–1,000 24,584 582 2,391 3,007 NA NA 364 

Industrial Nitric Acid Production 325311 1,000 3,844 152 60 NA NA NA NA

Industrial Petrochemical Production 3251 500–1,000 123,343 1,603 4,722 7,974 3,990 2,048 3,819 

Industrial Petroleum Refineries 324110 3225,612 538 2,903 5,186 10,094 NA NA

Industrial Phosphoric Acid Production 325312 500 4,607 7 NA NA NA NA NA

Industrial Pulp and Paper Manufacturing 3221 750 81,766 146 719 5,269 805 3,294 2,833 

Industrial Silicon Carbide Production 327910 500 3,861 206 561 715 NA NA NA

Industrial Soda Ash Manufacturing 325181 1,000 2,386 12 NA NA NA NA NA

Industrial Titanium Dioxide Production 325188 1,000 18,803 199 267 685 NA NA NA

Industrial Zinc Production 3314 750–1000 24,584 582 2,391 3,007 NA NA 364 

Industrial Ethanol Production 325193 1,000 2,416 NA NA NA NA NA NA

Industrial Food Processing 311 500–1000 527,312 14,597 37,198 65,304 26,627 11,533 25,216 

(continued)
62

Table 6.3. Receipts by Industry and Enterprise Size: 2002 (in Millions of 2007$) (continued)

Sector Source Category NAICS

SBA Size 

Standard

Total 

Receipts

($)

<20 

Employees

20 to 99 

Employees

100 to 499 

Employees

500 to 749 

Employees

750 to 999 

Employees

1,000 to 

1,499 

Employees

Energy Underground Coal Mines 21211 500 22,873 501 2,415 3,328 NA 506 NA

Energy Oil and Natural Gas Systems 211 500 185,420 8,465 7,826 11,075 5,312 4,600 3,233 

Energy Oil and Natural Gas Systems 486 451,926 1,163 158 258 NA NA NA

Waste 

Treatment

Landfills 562 $12.5 

million

55,557 7,451 8,366 5,940 965 858 586 

Waste 

Treatment

MWCs 562 $12.5 

million

55,557 7,451 8,366 5,940 965 858 586 

The Census Bureau defines an enterprise as a business organization consisting of one or more domestic establishments that were specified under common 

ownership or control. The enterprise and the establishment are the same for single-establishment firms. Each multi-establishment company forms one 

enterprise—the enterprise employment and annual payroll are summed from the associated establishments. Enterprise size designations are determined by the 

summed employment of all associated establishments.

Since the SBA’s business size definitions (http://www.sba.gov/size) apply to an establishment’s ultimate parent company, we assume in this analysis that the 

enterprise definition above is consistent with the concept of ultimate parent company that is typically used for SBREFA screening analyses. SBA Small 

Business categorization as of 8/11/08.

1 NAICS codes 221111, 221112, 221113, 221119, 221121, 221122: A firm is small if, including its affiliates, it is primarily engaged in the generation, 

transmission, and/or distribution of electric energy for sale and its total electric output for the preceding fiscal year did not exceed 4 million megawatt hours.

2 NAICS Subsectors 333, 334, 335 and 336: For rebuilding machinery or equipment on a factory basis, or equivalent, use the NAICS code for a newly 

manufactured product. Concerns performing major rebuilding or overhaul activities do not necessarily have to meet the criteria for being a “manufacturer”

although the activities may be classified under a manufacturing NAICS code. Ordinary repair services or preservation are not considered rebuilding.

3

500 to 1,500. For NAICS code 324110: For purposes of Government procurement, the petroleum refiner must be a concern that has 1,500 employees or fewer 

and 125,000 barrels or less per calendar day total Operable Atmospheric Crude Oil Distillation capacity. Capacity includes owned or leased facilities as well as 

facilities under a processing agreement or an arrangement such as an exchange agreement or a throughput. The total product to be delivered under the contract 

must be at least 90 percent refined by the successful bidder from either crude oil or bona fide feedstocks.

4

Subsector 486: Pipeline Transportation (486110 Pipeline Transportation of Crude Oil 1,500, 486210 Pipeline Transportation of Natural Gas $7.0 million, 

486910 Pipeline Transportation of Refined Petroleum Products 1,500, 486990 All Other Pipeline Transportation $34.5 million)
63

Table 6.4. Number of Firms by Affected Industry and Enterprise Size in Commercial Sectors: 2002

Sector Source Category NAICS

SBA Size 

Standard 

in Millions 

of Dollars

Total 

Firms

<20 

Employees

20 to 99 

Employees

100 to 499 

Employees

500 to 749 

Employees

750 to 999 

Employees

1,000 to 

1,499 

Employees

Commercial Education 61 $7.035.0 65,933 40,824 12,379 3,071 289 174 187 

Commercial Enclosed Mall 531120 7.0 28,241 22,509 1,077 329 43 32 30 

Commercial Food Sales NA NA NA NA NA NA NA

Commercial Food Service 722 7.020.5 376,637 248,494 67,549 6,629 447 191 223 

Commercial Inpatient Health C are 622 34.5 4,548 427 487 1,590 384 237 333 

Commercial Laboratory 541380 12.0 4,708 3,335 680 148 22 6 12 

Commercial Laboratory 5417 7.0 11,418 7,365 1,478 532 72 29 39 

Commercial Lodging 721 7.0 51,168 33,326 7,968 1,428 135 70 77 

Commercial Nonrefrigerated Warehouse 49311 25.5 3,152 2,005 514 199 15 10 19 

Commercial Nursing 623 7.013.5 32,720 14,632 8,486 5,836 418 179 174 

Commercial Office 531120 7.0 28,241 22,509 1,077 329 43 32 30 

Commercial Other 81 7.025.0 675,218 568,285 41,363 4,449 290 164 165 

Commercial Outpatient Health Care 621 7.034.5 424,694 351,540 27,991 4,699 428 216 238 

Commercial Public Assembly 71 7.0 103,043 64,915 12,227 2,292 153 82 95 

Commercial Public Order and Safety NA NA NA NA NA NA NA

Commercial Refrigerated Warehouse 49312 25.5 608 358 138 34 3 2 4 

Commercial Religious Worship 813110 7.0 172,311 147,505 15,942 1,213 39 21 19 

Commercial Retail Other than Mall 44-45 7.029.0 736,130 579,905 59,639 8,723 577 289 338 

Commercial Service 81 7.025.0 675,218 568,285 41,363 4,449 290 164 165 

Commercial Strip Shopping Mall 531120 7.0 28,241 22,509 1,077 329 43 32 30 

Residential Residential 531110 7.0 52,190 44,477 1,799 441 55 29 30 

The Census Bureau defines an enterprise as a business organization consisting of one or more domestic establishments that were specified under common 

ownership or control. The enterprise and the establishment are the same for single-establishment firms. Each multi-establishment company forms one 

enterprise—the enterprise employment and annual payroll are summed from the associated establishments. Enterprise size designations are determined by the 

summed employment of all associated establishments.

Since the SBA’s business size definitions (http://www.sba.gov/size) apply to an establishment’s ultimate parent company, we assume in this analysis that the 

enterprise definition above is consistent with the concept of ultimate parent company that is typically used for SBREFA screening analyses. SBA size categories 

as of 8/11/08.
64

Table 6.5. Number of Establishments by Affected Industry and Enterprise Size: 2002

Sector Source Category NAICS

SBA Size 

Standard Total Firms

<20 

Employees

20 to 99 

Employees

100 to 499 

Employees

500 to 749 

Employees

750 to 999 

Employees

1,000 to 1,499 

Employees

Commercial Education 61 7.0–35.0 73,701 41,136 13,925 5,604 864 398 501 

Commercial Enclosed Mall 531120 7.0 30,777 22,706 1,313 597 123 180 141 

Commercial Food Sales NA NA NA NA NA NA NA

Commercial Food Service 722 7.0–20.5 503,354 249,889 79,906 31,769 7,297 4,524 6,819 

Commercial Inpatient Health Care 622 34.5 7,569 441 513 1,725 442 294 420 

Commercial Laboratory 541380 12.0 5,962 3,371 972 488 67 41 195 

Commercial Laboratory 5417 7.0 13,944 7,462 1,836 996 228 112 150 

Commercial Lodging 721 7.0 61,795 33,613 9,057 2,962 761 249 663 

Commercial Nonrefrigerated 

Warehouse

49311 25.5 4,893 2,057 805 529 311 97 87 

Commercial Nursing 623 7.0–13.5 67,900 14,824 11,701 18,516 3,717 1,898 2,043 

Commercial Office 531120 7.0 30,777 22,706 1,313 597 123 180 141 

Commercial Other 81 7.0–25.0 740,118 573,318 54,021 16,431 2,960 1,850 2,317 

Commercial Outpatient Health 

Care

621 7.0–34.5 487,747 357,221 41,650 19,182 3,021 2,087 1,933 

Commercial Public Assembly 71 7.0 110,375 65,195 13,408 3,715 566 591 394 

Commercial Public Order and 

Safety

NA NA NA NA NA NA NA

Commercial Refrigerated 

Warehouse

49312 25.5 970 367 204 96 20 13 36 

Commercial Religious Worship 813110 7.0 172,562 147,510 16,009 1,272 115 25 27 

Commercial Retail Other than Mall 44-45 7.0–29.0 1,125,693 594,655 98,116 51,814 12,028 8,897 13,004 

Commercial Service 81 7.0–25.0 740,118 573,318 54,021 16,431 2,960 1,850 2,317 

Commercial Strip Shopping Mall 531120 7.0 30,777 22,706 1,313 597 123 180 141 

(continued)
65

Table 6.5. Number of Establishments by Affected Industry and Enterprise Size: 2002 (continued)

Sector Source Category NAICS

SBA Size 

Standard Total Firms

<20 

Employees

20 to 99 

Employees

100 to 499 

Employees

500 to 749 

Employees

750 to 999 

Employees

1,000 to 1,499 

Employees

Residential Residential 531110 7.0 57,748 45,104 2,992 2,491 479 132 205 

The Census Bureau defines an enterprise as a business organization consisting of one or more domestic establishments that were specified under common 

ownership or control. The enterprise and the establishment are the same for single-establishment firms. Each multi-establishment company forms one 

enterprise—the enterprise employment and annual payroll are summed from the associated establishments. Enterprise size designations are determined by the 

summed employment of all associated establishments.

Since the SBA’s business size definitions (http://www.sba.gov/size) apply to an establishment’s ultimate parent company, we assume in this analysis that the 

enterprise definition above is consistent with the concept of ultimate parent company that is typically used for SBREFA screening analyses. SBA small business 

categories as of 8/11//08.
66

Table 6.6. Number of Employees by Affected Industry and Commercial Enterprise Size: 2002

Sector Source Category NAICS

SBA Size 

Standard

Total 

Establishments<20 

Employees

20 to 99 

Employees

100 to 499 

Employees

500 to 749 

Employees

750 to 999 

Employees

1,000 to 

1,499 

Employees

Commercial Education 61 7.0–35.0 2,701,675 223,695 516,135 535,272 148,370 121,656 190,930 

Commercial Enclosed Mall 531120 7.0 163,501 73,311 32,364 22,319 5,066 3,583 4,095 

Commercial Food Sales NA NA NA NA NA NA NA

Commercial Food Service 722 7.0–20.5 8,352,174 1,622,740 2,551,714 1,184,119 232,483 134,402 216,606 

Commercial Inpatient Health Care 622 34.5 5,121,584 2,374 30,243 389,501 220,984 192,908 385,312 

Commercial Laboratory 541380 12.0 100,797 18,415 25,714 19,918 3,920 2,677 4,786 

Commercial Laboratory 5417 7.0 399,213 35,669 60,951 84,936 22,983 9,641 15,808 

Commercial Lodging 721 7.0 1,696,701 202,509 292,528 232,976 56,837 37,156 53,296 

Commercial Nonrefrigerated 

Warehouse

49311 25.5 94,316 11,294 18,392 21,859 3,802 2,144 2,654 

Commercial Nursing 623 7.0–13.5 2,770,665 92,274 409,004 965,200 172,278 91,599 132,119 

Commercial Office 531120 7.0 163,501 73,311 32,364 22,319 5,066 3,583 4,095 

Commercial Other 81 7.0–25.0 5,420,087 2,547,460 1,482,350 640,068 84,297 61,553 74,082 

Commercial Outpatient Health Care 621 7.0–34.5 4,917,156 1,829,546 1,029,355 751,711 134,712 89,264 107,577 

Commercial Public Assembly 71 7.0 1,800,991 315,475 496,962 380,688 65,678 NA 72,282 

Commercial Public Order and Safety NA NA NA NA NA NA NA

Commercial Refrigerated 

Warehouse

49312 25.5 28,100 2,238 5,427 5,010 NA NA 1,545 

Commercial Religious Worship 813110 7.0 1,638,915 722,630 607,209 197,037 20,211 13,453 14,081 

Commercial Retail Other than Mall 44–45 7.0–29.0 14,819,904 2,889,481 2,204,104 1,267,733 213,518 138,205 200,867 

Commercial Service 81 7.0–25.0 5,420,087 2,547,460 1,482,350 640,068 84,297 61,553 74,082 

Commercial Strip Shopping Mall 531120 7.0 163,501 73,311 32,364 22,319 5,066 3,583 4,095 

Residential Residential 531110 7.0 281,250 152,350 59,796 42,104 7,627 NA NA

The Census Bureau defines an enterprise as a business organization consisting of one or more domestic establishments that were specified under common 

ownership or control. The enterprise and the establishment are the same for single-establishment firms. Each multi-establishment company forms one 

enterprise—the enterprise employment and annual payroll are summed from the associated establishments. Enterprise size designations are determined by the 

summed employment of all associated establishments.

Since the SBA’s business size definitions (http://www.sba.gov/size) apply to an establishment’s ultimate parent company, we assume in this analysis that the 

enterprise definition above is consistent with the concept of ultimate parent company that is typically used for SBREFA screening analyses. SBA small business 

sizes as of 8/11/08.
67

Table 6.7. Receipts by Affected Industry and Enterprise Size: 2002 (Millions of 2007 $)

Sector Source Category NAICS

SBA Size 

Standard 

in Millions 

of Dollars

Total 

Receipts

<20 

Employees

20 to 99 

Employees

100 to 499 

Employees

500 to 749 

Employees

750 to 999 

Employees

1,000 to 

1,499 

Employees

Commercial Education 61 7.0–35.0 207,779 15,586 30,849 38,207 10,456 7,620 11,997 

Commercial Enclosed Mall 531120 7.0 52,796 21,467 8,090 6,609 2,148 2,145 3,281 

Commercial Food Sales NA NA NA NA NA NA NA

Commercial Food Service 722 7.0–20.5 373,666 79,827 98,916 49,500 9,774 5,742 9,036 

Commercial Inpatient Health Care 622 34.5 575,286 845 2,892 33,554 20,075 18,448 41,167 

Commercial Laboratory 541380 12.0 11,854 2,018 2,763 2,091 478 319 574 

Commercial Laboratory 5417 7.0 72,013 6,419 10,785 15,439 4,422 1,942 2,802 

Commercial Lodging 721 7.0 141,193 15,159 18,413 15,047 4,287 2,869 4,431 

Commercial Nonrefrigerated 

Warehouse

49311 25.5 10,705 1,546 2,199 2,281 508 286 301 

Commercial Nursing 623 7.0–13.5 145,529 4,624 18,714 49,332 9,058 4,989 7,319 

Commercial Office 531120 7.0 52,796 21,467 8,090 6,609 2,148 2,145 3,281 

Commercial Other 81 7.0–25.0 491,097 215,897 120,283 67,821 10,225 5,946 5,999 

Commercial Outpatient Health Care 621 7.0–34.5 582,829 229,611 118,216 73,667 12,923 8,277 10,556 

Commercial Public Assembly 71 7.0 170,062 35,446 31,146 35,130 6,972 NA 7,610 

Commercial Public Order and Safety NA NA NA NA NA NA NA NA NA

Commercial Refrigerated Warehouse 49312 25.5 4,889 325 765 586 NA NA 233 

Commercial Religious Worship 813110 7.0 95,558 37,076 34,178 13,933 1,681 1,165 1,025 

Commercial Retail Other than Mall 44–45 7.0–29.0 3,612,583 577,700 662,037 441,243 65,923 34,570 49,386 

Commercial Service 81 7.0–25.0 491,097 215,897 120,283 67,821 10,225 5,946 5,999 

Commercial Strip Shopping Mall 531120 7.0 52,796 21,467 8,090 6,609 2,148 2,145 3,281 

Residential Residential 531110 7.0 57,365 32,327 9,943 6,854 1,366 NA NA

The Census Bureau defines an enterprise as a business organization consisting of one or more domestic establishments that were specified under common 

ownership or control. The enterprise and the establishment are the same for single-establishment firms. Each multi-establishment company forms one 

enterprise—the enterprise employment and annual payroll are summed from the associated establishments. Enterprise size designations are determined by the 

summed employment of all associated establishments.

Since the SBA’s business size definitions (http://www.sba.gov/size) apply to an establishment’s ultimate parent company, we assume in this analysis that the 

enterprise definition above is consistent with the concept of ultimate parent company that is typically used for SBREFA screening analyses. SBA small business 

sizes as of 8/11.08.
68

Because the SBA’s business size definitions (SBA, 2008c) apply to an establishment’s 

“ultimate parent company,” we assume in this analysis that the “enterprise” definition above is 

consistent with the concept of ultimate parent company that is typically used for SBREFA 

screening analyses, and the terms are used interchangeably. We also report the SBA size 

standard(s) for each industry group to facilitate comparisons and different thresholds. 

6.2 Developing Economic and Small Entity Regulatory Relief Impact Measures

We measured the postponed impacts of the rule on small entities in each sector using 

methods presented in EPA’s Final SBREFA Guidance (EPA, 2006). Because the rule covers a 

large number of sectors and primarily covers businesses, the analysis generated a set of sales tests 

(represented as cost-to-receipt ratios)9for NAICS codes associated with the affected sectors. 

Although the appropriate SBA size definition should be applied at the parent company

(enterprise) level, data limitations allowed us only to compute and compare ratios for a model 

establishment for six enterprise size ranges (i.e., all categories, enterprises with 1 to 20 

employees, 20 to 99 employees, 100 to 499 employees, 500 to 999 employees, and 1,000 to 1,499 

employees). This approach allowed us to account for differences in establishment receipts 

between large and small enterprises and differences in small business definitions across affected 

industries. It is also a conservative approach, because an establishment’s parent company (the 

“enterprise”) may have other economic resources that could be used to cover the costs of the 

reporting program.

6.3 Implementing the Sales Test to Measure Impacts on Industrial, Commercial, and 

Multifamily Residential Sources

To implement the recommended sales test, EPA computed cost-to-sales ratios for affected 

sectors at the establishment (or facility) level.10 The ratios examine the ratio of the average 

 

9 The following metrics for other small entity economic impact measures (if applicable) would potentially include

 Small governments (if applicable): “Revenue” test—annualized compliance cost as a percentage of annual 

government revenues

 Small nonprofits (if applicable): “Expenditure” test—annualized compliance cost as a percentage of annual 

operating expenses

10 Typically, SBREFA impact assessments are conducted at the ultimate parent company level. As noted above, we 

assume that Census definition of enterprise is equivalent to ultimate parent company. Theoretically, the 

comparison of compliance costs to sales should be conducted at the enterprise level. Because Census only 

provides data for typical establishments within various enterprise size categories, EPA chose to compute the 

cost-to-sales ratio at the establishment (or facility level). The same ratio could be computed at the enterprise level 

by multiplying both the numerator and the denominator by the typical number of establishments per enterprise in 
69

establishment’s total annualized mandatory reporting costs to the average establishment receipts 

for enterprises within several employment categories.

11 The average entity costs used to compute 

the sales test are the same across all of these enterprise size categories. As a result, the sales test 

will overstate the cost-to-receipt ratio for establishments owned by small businesses, because the 

reporting costs are likely lower than average entity estimates provided by the engineering cost 

analysis. 

Cost-to-sales ratios for industrial categories are reported in Tables 6.9 through 6.12. 

Table 6.8 shows impacts avoided for small sources of GHG for title V. In Tables 6.9 and 6.10,

impacts avoided for new and modifying PSD sources, respectively, are presented. Table 6.11 

shows the avoided costs compared to sales for title V permitting. These ratios are calculated 

using data on the average avoided cost of compliance per facility and data on the average sales 

per establishment obtained from the Census Bureau. Cost-to-sales or revenue ratios for 

commercial and residential categories are reported in Tables 6.12 through 6.14. Table 6.12 shows 

impacts avoided for small commercial and residential sources of GHG for title V. Tables 6.13 

and 6.14 show impacts avoided for modifying and new PSD commercial and residential sources, 

respectively. 

The burden avoided per-entity costs of the rule are shown in Table 3.0 for title V. The

avoided burden cost associated with obtaining an operating permit is $46.4 thousand per source 

for industrial sources of GHG emissions and approximately $23 thousand for commercial and 

residential sources. An avoided cost of $1,677 is estimated for sources requiring title V 

permitting revision. For modifying PSD sources, the avoided burden costs with obtaining a 

permit is $84.5 thousand per source for industrial sources of GHG emissions and approximately

$59 thousand per source for commercial and residential sources. Finally, for new PSD sources, 

the avoided burden costs are the sum of the avoided title V and modifying PSD costs. Thus, the 

avoided burden costs are approximately $130.8 thousand per source for new industrial sources of 

GHG emissions and approximately $82 thousand per source for new commercial and residential 

sources. 

 

the appropriate enterprise size categories. Using the SUSB data on typical establishments means that the cost-tosales ratios are identical, whether computed at the establishment level or at the enterprise level.

11 For the one to 20 employee category, we excluded SUSB data for enterprises with zero employees. These 

enterprises did not operate the entire year.
70

The cost-to-sales estimates show that the avoided costs for industrial sources typically are 

zero up to 1.5 percent of their sales, but they can be as high as 19 percent for certain sources 

(e.g., aluminum plants with less than 20 employees). For PSD, the avoided ICR cost-to-sales 

ratios range from zero to 2.7 percent for modifying and from zero to 4.2 percent of sales for new 

industrial sources. These avoided cost-to-sales ratio for PSD do not consider avoided BACT 

costs due to lack of sufficient data currently.

For commercial sources, the average avoided cost to sales ratios range from 0.5 to 4.2 

percent for title V. These average avoided cost-to-sales ranges increase for PSD to 

approximately from 1.2 to 10.7 percent of their sales or revenues for modifying commercial and 

multifamily residential sources and 1.6 to 14.9 for new commercial and residential PSD sources. 

6.4 Economic Relief to Permitting Authorities

In this final rule, the thresholds for requiring title V and PSD permits are increased above 

statutory CAA levels resulting in millions of potential title V sources and tens of thousands of 

new and modifying PSD sources being able to postpone obtaining a permit for a phase-in period 

of about 5 years. This action will provide significant regulatory relief to States, local 

government, and tribal permitting authorities. The magnitude of permits that would need to be 

addressed and the dollar estimate of the additional costs in labor and administrative costs 

permitting authorities would otherwise incur if GHG are a regulated pollutant absent this 

rulemaking are shown in Tables 3.0 and 3.2 in Section 3. 

For title V permits, permitting authorities will experience avoided costs of approximately

$21 billion relating to approximately 2 million new operating permits annually that otherwise 

would need to be processed. Although this administrative burden represents a huge burden to 

these agencies, Part 70 of the CAA does provide for a mechanism for the affected permitting 

authorities to recoup the costs of operation associated with administering this expanded permit 

program. EPA recognizes in this tailoring rule that the sheer magnitude and burden of these 

additional small GHG sources cannot feasibly be met by these permitting authorities on 

administrative burden grounds for a period of at least 5 years regardless of the ability to include 

these increased costs in fees charged to sources. However, the economic consequences to 

permitting authorities of this permitting program are offset in the fee structure these authorities 

are allowed to charge sources obtaining title V permits.
71

For PSD permitting authorities, no such mitigating fee structure currently exists. Thus, 

the funding for administering a PSD permitting program to include tens of thousands of 

additional new and modifying PSD sources annually would need to be met by these permitting 

authorities from current revenue sources. At present, there are approximately 58 State, local, and 

tribal PSD permitting programs operating in the United States and approximately 49 additional 

State, local, or tribal government authorities that are administering federal programs under 

delegation from EPA. It is difficult to estimate the economic consequences of the regulatory

relief afforded to the individual permitting authorities, because the number of PSD permits 

processed each year varies by permitting authority over time depending on the number of new 

and modifying sources occurring in a given location. However, the National Association of 

Clean Air Agencies (NACAA) has, through a member survey, broadly assessed the additional 

resource and burden considerations of EPA treating GHG as a regulated pollutant. NACAA

provided this information to EPA to help improve our understanding of agencies’ burdens.

12

 

Under the current PSD program requirements, these permitting authorities process an average of 

8 PSD permits for new and modifying sources each year (range of 0 to 56 for individual 

respondents). These surveyed permitting authorities indicate they would need an average of 12 

new full-time employees (range of 1 to 63) costing an average of $1.1 million annually (range 

$60 thousand to $6.3 million) with a 10-fold increase in permits occurring as a result of

including GHG as a regulated pollutant. Some of these permitting authorities indicated that 

hiring new employees is not possible at this time because of budget constraints and hiring 

freezes. All respondents indicated that new training would be needed to address GHG

permitting. Rather than the 10-fold increase in permits postulated in NACAA’s survey, EPA 

estimates the increase would more likely be 100-fold making these estimates a significant

understatement of the potential impacts on permitting authorities. For more information about 

the sources affected by alternative thresholds and currently covered by title V and PSD, see 

Attachments B and C.

 

12 Memorandum from Mary Stewart Douglas NACAA, to Juan E. Santiago, Group Leader, Operating Permits 

Group, U.S. EPA OAQPS. September 3, 2009.
72

Table 6.8. Avoided Title V Costs to Sales for Small Industrial Sources of GHG Emissions 

Sector Source Category NAICS

SBA Size 

Standard

Average 

Cost Per 

Entity 

(2007$)

Cost per entity 

for All 

Establishments 

(%)

Cost per 

Entity for 

<20 

Employees 

(%)

Cost per 

Entity for 

20 to 99 

Employees 

(%)

Cost per 

Entity 100 

to 499 

Employees 

(%)

Cost per 

Entity for 

500 to 749 

Employees 

(%)

Cost per 

Entity for 

750 to 999 

Employees 

(%)

Cost per 

Entity for

1,000 to 

1,499 

Employees 

(%)

Electricity 

Generating 

Units

Electricity Generating 

Units

22 1$46,350 0.2% 2.6% 0.2% 0.2% 0.2% 0.1% 0.1%

Industrial Adipic Acid 

Production

325199 1,000 $46,350 0.1% 1.7% 0.5% 0.2% NA 0.0% NA

Industrial Aluminum 

Production

331312 1,000 $46,350 0.1% 19.0% NA NA NA NA NA

Industrial Ammonia 

Manufacturing

325311 1,000 $46,350 0.2% 2.4% 1.4% NA NA NA NA

Industrial Cement Production 327310 750 $46,350 0.1% 1.5% 1.1% 0.2% NA NA 0.1%

Industrial Electronics 

Manufacturing

334 2$46,350 0.2% 3.6% 0.6% 0.2% 0.1% 0.1% 0.1%

Industrial Ferroalloy 

Production

331112 750 $46,350 0.1% NA NA NA NA NA NA

Industrial Glass Production 327 500–1,000 $46,350 0.7% 4.5% 0.9% 0.5% 0.3% 0.5% 0.4%

Industrial HCFC-22 Production 325120 1,000 $46,350 0.4% 8.3% 0.3% 1.1% NA NA NA

Industrial Hydrogen Production 325120 1,000 $46,350 0.4% 8.3% 0.3% 1.1% NA NA NA

Industrial Iron and Steel 

Production

331111 1,000 $46350 0.1% 11.6% 0.6% 0.2% 0.1% NA NA

Industrial Lead Production 3314 750–1,000 $46,350 0.2% 3.1% 0.3% 0.2% NA NA 0.1%

Industrial Lime Manufacturing 327410 500 $46,350 0.3% 12.8% 0.9% NA NA NA NA

Industrial Magnesium 

Production

3314 750–1,000 $46,350 0.2% 3.1% 0.3% 0.2% NA NA 0.1%

Industrial Nitric Acid 

Production

325311 1,000 $46,350 0.2% 2.4% 1.4% NA NA NA NA

Industrial Petrochemical 

Production

3251 500–1,000 $46,350 0.1% 1.4% 0.3% 0.1% 0.1% 0.1% 0.1%

Industrial Petroleum Refineries 324110 3$46,350 0.0% 0.7% 0.0% 0.0% 0.0% NA NA

Industrial Phosphoric Acid 

Production

325312 500 $46,350 0.1% 7.8% NA NA NA NA NA

Industrial Pulp and Paper 

Manufacturing

3221 750 $46,350 0.0% 3.1% 0.4% 0.1% 0.1% 0.0% 0.0%

(continued)
73

Table 6.8. Avoided Title V Costs to Sales for Small Industrial Sources of GHG Emissions (continued)

Sector Source Category NAICS

SBA Size 

Standard

Average 

Cost Per 

Entity 

(2007$)

Cost per entity 

for All 

Establishments 

(%)

Cost per 

Entity for 

<20 

Employees 

(%)

Cost per 

Entity for 

20 to 99 

Employees 

(%)

Cost per 

Entity 100 

to 499 

Employees 

(%)

Cost per 

Entity for 

500 to 749 

Employees

(%)

Cost per 

Entity for 

750 to 999 

Employees 

(%)

Cost per 

Entity for 

1,000 to 

1,499 

Employees 

(%)

Industrial Silicon Carbide 

Production

327910 500 $46,350 0.4% 3.6% 0.8% 0.3% NA NA NA

Industrial Soda Ash 

Manufacturing

325181 1,000 $46,350 0.1% 3.8% NA NA NA NA NA

Industrial Titanium Dioxide 

Production

325188 1,000 $46,350 0.2% 3.3% 1.9% 0.5% NA NA NA

Industrial Zinc Production 3314 750–1,000 $46,350 0.2% 3.1% 0.3% 0.2% NA NA 0.1%

Industrial Ethanol Production 325193 1,000 $46,350 0.1% NA NA NA NA NA NA

Industrial Food Processing 311 500–1,000 $46,350 0.2% 4.4% 0.5% 0.1% 0.1% 0.1% 0.1%

Energy Underground Coal 

Mines

21211 500 $46,350 0.2% 3.6% 0.5% 0.2% NA 0.2% NA

Energy Oil and Natural Gas 

Systems

211 500 $46,350 0.2% 2.9% 0.3% 0.1% 0.1% 0.1% 0.0%

Energy Oil and Natural Gas 

Systems

486 4$46,350 0.2% 0.4% 1.7% 1.4% NA NA NA

Waste 

Treatment

Landfills 562 $12.5 

million

$46,350 1.5% 6.7% 1.0% 0.5% 0.4% 0.3% 0.5%

Waste 

Treatment

MWCs 562 $12.5 

million

$46,350 1.5% 6.7% 1.0% 0.5% 0.4% 0.3% 0.5%

Since the SBA’s business size definitions (http://www.sba.gov/size) apply to an establishment’s ultimate parent company, we assume in this analysis that the 

enterprise definition above is consistent with the concept of ultimate parent company that is typically used for Small Business Regulatory Enforcement Fairness 

Act (SBREFA) screening analyses.

1 NAICS codes 221111, 221112, 221113, 221119, 221121, 221122 – A firm is small if, including its affiliates, it is primarily engaged in the generation, 

transmission, and/or distribution of electric energy for sale and its total electric output for the preceding fiscal year did not exceed 4 million megawatt hours.

2

500 to 1,500. For NAICS code 324110: For purposes of Government procurement, the petroleum refiner must be a concern that has no more than 1,500 

employees nor production greater than 125,000 barrels per calendar day total Operable Atmospheric Crude Oil Distillation capacity. Capacity includes owned or 

leased facilities as well as facilities under a processing agreement or an arrangement such as an exchange agreement or a throughput. The total product to be

delivered under the contract must be at least 90 percent refined by the successful bidder from either crude oil or bona fide feedstocks.

3 NAICS Subsectors 333, 334, 335 and 336: For rebuilding machinery or equipment on a factory basis, or equivalent, use the NAICS code for a newly 

manufactured product. Concerns performing major rebuilding or overhaul activities do not necessarily have to meet the criteria for being a “manufacturer”

although the activities may be classified under a manufacturing NAICS code. Ordinary repair services or preservation are not considered rebuilding.

4

Subsector 486: Pipeline Transportation (486110 Pipeline Transportation of Crude Oil 1,500, 486210 Pipeline Transportation of Natural Gas $7.0 million, 486910 

Pipeline Transportation of Refined Petroleum Products 1,500, 486990 All Other Pipeline Transportation $34.5 million)
74

Table 6.9. Avoided Costs to Sales for Small Modifying Industrial GHG PSD Emission Sources

Sector Source Category NAICS

SBA Size 

Standard 

(effective 

August 11, 

2008)

Average 

Cost Per 

Entity 

(2007$)

Cost per 

Entity for 

All 

Establishments (%)

Cost per 

Entity for 

<20 

Employees 

(%)

Cost per 

Entity for 

20 to 99 

Employees 

(%)

Cost per 

Entity 100 

to 499 

Employees 

(%)

Cost per 

Entity for 

500 to 749 

Employees 

(%)

Cost per 

Entity for 

750 to 999 

Employees 

(%)

Cost per 

Entity for 

1,000 to 

1,499 

Employees 

(%)

Electricity 

Generating 

Units

Electricity Generating 

Units

22 1$84,530 0.3% 4.7% 0.4% 0.3% 0.3% 0.2% 0.2%

Industrial Adipic Acid 

Production

325199 1,000 $84,530 0.1% 3.0% 1.0% 0.3% NA 0.0% NA

Industrial Aluminum Production 331312 1,000 $84,530 0.1% 34.6% NA NA NA NA NA

Industrial Ammonia 

Manufacturing

325311 1,000 $84,530 0.3% 4.3% 2.5% NA NA NA NA

Industrial Cement Production 327310 750 $84,530 0.3% 2.7% 2.0% 0.4% NA NA 0.2%

Industrial Electronics 

Manufacturing

334 2$84,530 0.3% 6.6% 1.1% 0.3% 0.2% 0.1% 0.1%

Industrial Ferroalloy Production 331112 750 $84,530 0.1% NA NA NA NA NA NA

Industrial Glass Production 327 500–1,000 $84,530 1.3% 8.1% 1.6% 0.9% 0.6% 0.9% 0.7%

Industrial HCFC-22 Production 325120 1,000 $84,530 0.7% 15.1% 0.5% 2.1% NA NA NA

Industrial Hydrogen Production 325120 1,000 $84,530 0.7% 15.1% 0.5% 2.1% NA NA NA

Industrial Iron and Steel 

Production

331111 1,000 $84,530 0.2% 21.2% 1.2% 0.4% 0.1% NA NA

Industrial Lead Production 3314 750–1,000 $84,530 0.3% 5.6% 0.6% 0.3% NA NA NA

Industrial Lime Manufacturing 327410 500 $84,530 0.6% 23.3% 1.7% NA NA NA 0.3%

Industrial Magnesium 

Production

3314 750–1,000 $84,530 0.3% 5.6% 0.6% 0.3% NA NA NA

Industrial Nitric Acid Production 325311 1,000 $84,530 0.3% 4.3% 2.5% NA NA NA 0.3%

Industrial Petrochemical 

Production

3251 500–1,000 $84,530 0.2% 2.5% 0.6% 0.2% 0.1% 0.3% NA

Industrial Petroleum Refineries 324110 3$84,530 0.0% 1.3% 0.1% 0.0% 0.0% NA NA

Industrial Phosphoric Acid 

Production

325312 500 $84,530 0.1% 14.2% NA NA NA NA NA

Industrial Pulp and Paper 

Manufacturing

3221 750 $84,530 0.1% 5.6% 0.6% 0.1% 0.1% 0.1% 0.1%

Industrial Silicon Carbide 

Production

327910 500 $84,530 0.8% 6.6% 1.5% 0.5% NA NA NA

Industrial Soda Ash 

Manufacturing

325181 1,000 $84,530 0.1% 6.9% NA NA NA NA NA

(continued)
75

Table 6.9. Avoided Costs to Sales for Small Modifying Industrial GHG PSD Emission Sources (continued)

Sector Source Category NAICS

SBA Size 

Standard 

(effective 

August 11, 

2008)

Average 

Cost Per 

Entity 

(2007$)

Cost per 

Entity for 

All 

Establishments (%)

Cost per 

Entity for 

<20 

Employees 

(%)

Cost per 

Entity for 

20 to 99 

Employees 

(%)

Cost per 

Entity 100 

to 499 

Employees 

(%)

Cost per 

Entity for 

500 to 749 

Employees 

(%)

Cost per 

Entity for 

750 to 999 

Employees 

(%)

Cost per 

Entity for 

1,000 to 

1,499 

Employees 

(%)

Industrial Titanium Dioxide 

Production

325188 1,000 $84,530 0.3% 6.0% 3.5% 0.9% NA NA NA

Industrial Zinc Production 3314 750–1,000 $84,530 0.3% 5.6% 0.6% 0.3% NA NA 0.3%

Industrial Ethanol Production 325193 1,000 $84,530 0.2% NA NA NA NA NA NA

Industrial Food Processing 311 500–1,000 $84,530 0.4% 7.9% 1.0% 0.3% 0.1% 0.2% 0.1%

Energy Underground Coal 

Mines

21211 500 $84,530 0.4% 6.6% 1.0% 0.4% NA 0.3% NA

Energy Oil and Natural Gas 

Systems

211 500 $84,530 0.3% 5.2% 0.5% 0.2% 0.1% 0.1% 0.1%

Energy Oil and Natural Gas 

Systems

486 4$84,530 0.4% 0.8% 3.2% 2.6% NA NA NA

Waste 

Treatment

Landfills 562 $12.5 

million

$84,530 2.7% 12.2% 1.9% 0.9% 0.8% 0.6% 0.8%

Waste 

Treatment

MWCs 562 $12.5 

million

$84,530 2.7% 12.2% 1.9% 0.9% 0.8% 0.6% 0.8%

Since the SBA’s business size definitions (http://www.sba.gov/size) apply to an establishment’s ultimate parent company, we assume in this analysis that the 

enterprise definition above is consistent with the concept of ultimate parent company that is typically used for Small Business Regulatory Enforcement Fairness 

Act (SBREFA) screening analyses.

1 NAICS codes 221111, 221112, 221113, 221119, 221121, 221122 – A firm is small if, including its affiliates, it is primarily engaged in the generation, 

transmission, and/or distribution of electric energy for sale and its total electric output for the preceding fiscal year did not exceed 4 million megawatt hours.

2

500 to 1,500. For NAICS code 324110: For purposes of Government procurement, the petroleum refiner must be a concern that has no more than 1,500 

employees nor production greater than 125,000 barrels per calendar day total Operable Atmospheric Crude Oil Distillation capacity. Capacity includes owned or 

leased facilities as well as facilities under a processing agreement or an arrangement such as an exchange agreement or a throughput. The total product to be

delivered under the contract must be at least 90 percent refined by the successful bidder from either crude oil or bona fide feedstocks.

3 NAICS Subsectors 333, 334, 335 and 336: For rebuilding machinery or equipment on a factory basis, or equivalent, use the NAICS code for a newly 

manufactured product. Concerns performing major rebuilding or overhaul activities do not necessarily have to meet the criteria for being a “manufacturer”

although the activities may be classified under a manufacturing NAICS code. Ordinary repair services or preservation are not considered rebuilding.

4

Subsector 486: Pipeline Transportation (486110 Pipeline Transportation of Crude Oil 1,500, 486210 Pipeline Transportation of Natural Gas $7.0 million, 486910 

Pipeline Transportation of Refined Petroleum Products 1,500, 486990 All Other Pipeline Transportation $34.5 million)
76

Table 6.10. Avoided Costs to Sales for Small New PSD Industrial GHG Sources

Sector Source Category NAICS

SBA Size

Standard 

(effective 

August 11, 

2008)

Average 

Cost per 

Entity 

(2007$)

Cost per 

Entity for 

All 

Enterprises

Cost per 

Entity for 

<20 

Employees

Cost per 

Entity for 

20 to 99 

Employees

Cost per 

Entity 100 

to 499 

Employees

Cost per 

Entity for 

500 to 749 

Employees

Cost per 

Entity for 

750 to 999 

Employees

Cost per 

Entity for 

1,000 to 

1,499 

Employees

Electricity 

Generating 

Units

Electricity Generating 

Units

22 1$130,880 0.5% 7.2% 0.7% 0.5% 0.4% 0.4% 0.2%

Industrial Adipic Acid Production 325199 1,000 $130,880 0.2% 4.7% 1.5% 0.5% NA 0.1% NA

Industrial Aluminum Production 331312 1,000 $130,880 0.2% 53.6% NA NA NA NA NA

Industrial Ammonia 

Manufacturing

325311 1,000 $130,880 0.5% 6.7% 3.9% NA NA NA NA

Industrial Cement Production 327310 750 $130,880 0.4% 4.2% 3.2% 0.5% NA NA 0.3%

Industrial Electronics 

Manufacturing

334 2$130,880 0.5% 10.2% 1.7% 0.5% 0.3% 0.2% 0.2%

Industrial Ferroalloy Production 331112 750 $130,880 0.2% NA NA NA NA NA NA

Industrial Glass Production 327 500–1,000 $130,880 2.0% 12.6% 2.4% 1.4% 1.0% 1.4% 1.0%

Industrial HCFC-22 Production 325120 1,000 $130,880 1.1% 23.3% 0.8% 3.2% NA NA NA

Industrial Hydrogen Production 325120 1,000 $130,880 1.1% 23.3% 0.8% 3.2% NA NA NA

Industrial Iron and Steel 

Production

331111 1,000 $130,880 0.3% 32.9% 1.8% 0.7% 0.2% NA NA

Industrial Lead Production 3314 750–1,000 $130,880 0.5% 8.7% 1.0% 0.5% NA NA 0.4%

Industrial Lime Manufacturing 327410 500 $130,880 0.9% 36.1% 2.7% NA NA NA NA

Industrial Magnesium Production 3314 750–1,000 $130,880 0.5% 8.7% 1.0% 0.5% NA NA 0.4%

Industrial Nitric Acid Production 325311 1,000 $130,880 0.5% 6.7% 3.9% NA NA NA NA

Industrial Petrochemical 

Production

3251 500–1,000 $130,880 0.2% 3.9% 0.9% 0.4% 0.2% 0.4% 0.3%

Industrial Petroleum Refineries 324110 3$130,880 0.0% 2.1% 0.1% 0.1% 0.0% NA NA

Industrial Phosphoric Acid 

Production

325312 500 $130,880 0.1% 22.0% NA NA NA NA NA

Industrial Pulp and Paper 

Manufacturing

3221 750 $130,880 0.1% 8.7% 1.0% 0.2% 0.2% 0.1% 0.1%

Industrial Silicon Carbide 

Production

327910 500 $130,880 1.2% 10.2% 2.3% 0.8% NA NA NA

Industrial Soda Ash 

Manufacturing

325181 1,000 $130,880 0.2% 10.7% NA NA NA NA NA

Industrial Titanium Dioxide 

Production

325188 1,000 $130,880 0.4% 9.3% 5.4% 1.3% NA NA NA

Industrial Zinc Production 3314 750–1,000 $130,880 0.5% 8.7% 1.0% 0.5% NA NA 0.4%

(continued)
77

Table 6.10. Avoided Costs to Sales for Small New PSD Industrial GHG Sources (continued)

Sector Source Category NAICS

SBA Size 

Standard 

(effective 

August 11, 

2008)

Average 

Cost per 

Entity 

(2007$)

Cost per 

Entity for 

All 

Enterprises

Cost per 

Entity for 

<20 

Employees

Cost per 

Entity for 

20 to 99 

Employees

Cost per 

Entity 100 

to 499 

Employees

Cost per 

Entity for 

500 to 749 

Employees

Cost per 

Entity for 

750 to 999 

Employees

Cost per 

Entity for 

1,000 to 

1,499 

Employees

Industrial Ethanol Production 325193 1,000 $130,880 0.4% NA NA NA NA NA NA

Industrial Food Processing 311 500–1,000 $130,880 0.6% 12.3% 1.5% 0.4% 0.2% 0.2% 0.2%

Energy Underground Coal 

Mines

21211 500 $130,880 0.7% 10.2% 1.5% 0.5% NA 0.5% NA

Energy Oil and Natural Gas 

Systems

211 500 $130,880 0.5% 8.1% 0.8% 0.3% 0.1% 0.2% 0.1%

Energy Oil and Natural Gas 

Systems

486 4$130,880 0.7% 1.2% 4.9% 4.0% NA NA NA

Waste 

Treatment

Landfills 562 $12.5 

million

$130,880 4.2% 18.9% 2.9% 1.3% 1.2% 1.0% 1.3%

Waste 

Treatment

MWCs 562 $12.5 

million

$130,880 4.2% 18.9% 2.9% 1.3% 1.2% 1.0% 1.3%

Since the SBA’s business size definitions (http://www.sba.gov/size) apply to an establishment’s ultimate parent company, we assume in this analysis that the 

enterprise definition above is consistent with the concept of ultimate parent company that is typically used for Small Business Regulatory Enforcement Fairness 

Act (SBREFA) screening analyses.

1 NAICS codes 221111, 221112, 221113, 221119, 221121, 221122 – A firm is small if, including its affiliates, it is primarily engaged in the generation, 

transmission, and/or distribution of electric energy for sale and its total electric output for the preceding fiscal year did not exceed 4 million megawatt hours.

2

500 to 1,500. For NAICS code 324110: For purposes of Government procurement, the petroleum refiner must be a concern that has no more than 1,500 

employees nor production greater than 125,000 barrels per calendar day total Operable Atmospheric Crude Oil Distillation capacity. Capacity includes owned or 

leased facilities as well as facilities under a processing agreement or an arrangement such as an exchange agreement or a throughput. The total product to be

delivered under the contract must be at least 90 percent refined by the successful bidder from either crude oil or bona fide feedstocks.

3 NAICS Subsectors 333, 334, 335 and 336: For rebuilding machinery or equipment on a factory basis, or equivalent, use the NAICS code for a newly 

manufactured product. Concerns performing major rebuilding or overhaul activities do not necessarily have to meet the criteria for being a “manufacturer”

although the activities may be classified under a manufacturing NAICS code. Ordinary repair services or preservation are not considered rebuilding.

4

Subsector 486: Pipeline Transportation (486110 Pipeline Transportation of Crude Oil 1,500, 486210 Pipeline Transportation of Natural Gas $7.0 million, 486910 

Pipeline Transportation of Refined Petroleum Products 1,500, 486990 All Other Pipeline Transportation $34.5 million)
78

Table 6-11. Avoided Title V Permitting Costs to Sales for Permit Revisions Due to GHG 

Sector Source Category NAICS

SBA Size 

Standard 

(effective 

August 11, 

2008)

Average Cost 

Per Entity 

(2007$/entity)

Cost per 

Entity for 

All

Enterprises

Cost per 

Entity for 

Size

<20 

Employees

Cost per 

Entity for 

Size

20 to 99 

Employees

Cost per 

Entity for 

Size

100 to 499 

Employees

Cost per 

Entity for 

Size

500 to 749 

Employees

Cost per 

Entity for 

Size

750 to 999 

Employees

Cost per 

Entity For 

Size

1,000 to 1,499 

Employees

Electricity 

Generating 

Unites

Electricity Generating 

Units

22 1$1,677 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0%

Industrial Adipic Acid 

Production

325199 1,000 $1,677 0.0% 0.1% 0.0% 0.0% NA 0.0% NA

Industrial Aluminum Production 331312 1,000 $1,677 0.0% 0.7% NA NA NA NA NA

Industrial Ammonia 

Manufacturing

325311 1,000 $1,677 0.0% 0.1% 0.1% NA NA NA NA

Industrial Cement Production 327310 750 $1,677 0.0% 0.1% 0.0% 0.0% NA NA 0.0%

Industrial Electronics 

Manufacturing

334 2$1,677 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0%

Industrial Ferroalloy Production 331112 750 $1,677 0.0% NA NA NA NA NA NA

Industrial Glass Production 327 500–1,000 $1,677 0.0% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0%

Industrial HCFC-22 Production 325120 1,000 $1,677 0.0% 0.3% 0.0% 0.0% NA NA NA

Industrial Hydrogen Production 325120 1,000 $1,677 0.0% 0.3% 0.0% 0.0% NA NA NA

Industrial Iron and Steel 

Production

331111 1,000 $1,677 0.0% 0.4% 0.0% 0.0% 0.0% NA NA

Industrial Lead Production 3314 750–1,000 $1,677 0.0% 0.1% 0.0% 0.0% NA NA 0.0%

Industrial Lime Manufacturing 327410 500 $1,677 0.0% 0.5% 0.0% NA NA NA NA

Industrial Magnesium 

Production

3314 750–1,000 $1,677 0.0% 0.1% 0.0% 0.0% NA NA 0.0%

Industrial Nitric Acid Production 325311 1,000 $1,677 0.0% 0.1% 0.1% NA NA NA NA

Industrial Petrochemical 

Production

3251 500–1,000 $1,677 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Industrial Petroleum Refineries 324110 3$1,677 0.0% 0.0% 0.0% 0.0% 0.0% NA NA

(continued)
79

Table 6.11. Avoided Title V Permitting Costs to Sales for Permit Revisions Due to GHG (continued)

Sector Source Category NAICS

SBA Size 

Standard 

(effective 

August 11, 

2008)

Average Cost 

Per Entity 

(2007$/entity)

Cost per 

Entity for 

All

Enterprises

Cost per 

Entity for 

Size

<20 

Employees

Cost per 

Entity for 

Size

20 to 99 

Employees

Cost per 

Entity for 

Size

100 to 499 

Employees

Cost per 

Entity for 

Size

500 to 749 

Employees

Cost per 

Entity for 

Size

750 to 999 

Employees

Cost per 

Entity For 

Size

1,000 to 1,499 

Employees

Industrial Phosphoric Acid 

Production

325312 500 $1,677 0.0% 0.3% NA NA NA NA NA

Industrial Pulp and Paper 

Manufacturing

3221 750 $1,667 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0%

Industrial Silicon Carbide 

Production

327910 500 $1,677 0.0% 0.1% 0.0% 0.0% NA NA NA

Industrial Soda Ash 

Manufacturing

325181 1,000 $1,677 0.0% 0.1% NA NA NA NA NA

Industrial Titanium Dioxide 

Production

325188 1,000 $1,677 0.0% 0.1% 0.1% 0.0% NA NA NA

Industrial Zinc Production 3314 750–1,000 $1,677 0.0% 0.1% 0.0% 0.0% NA NA 0.0%

Industrial Ethanol Production 325193 1,000 $1,677 0.0% NA NA NA NA NA NA

Industrial Food Processing 311 500–1,000 $1,677 0.0% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0%

Energy Underground Coal 

Mines

21211 500 $1,677 0.0% 0.1% 0.0% 0.0% NA 0.0% NA

Energy Oil and Natural Gas 

Systems

211 500 $1,677 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0%

Energy Oil and Natural Gas 

Systems

486 4 $1,677 0.0% 0.0% 0.1% 0.1% NA NA NA

Waste 

Treatment

Landfills 562 $12.5

million

$1,677 0.1% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0%

(continued)
80

Table 6.11. Avoided Title V Permitting Costs to Sales for Permit Revisions Due to GHG (continued)

Sector Source Category NAICS

SBA Size 

Standard 

(effective 

August 11, 

2008)

Average Cost 

Per Entity 

(2007$/entity)

Cost per 

Entity for 

All

Enterprises

Cost per 

Entity for 

Size

<20 

Employees

Cost per 

Entity for 

Size

20 to 99 

Employees

Cost per 

Entity for 

Size

100 to 499 

Employees

Cost per 

Entity for 

Size

500 to 749 

Employees

Cost per 

Entity for 

Size

750 to 999 

Employees

Cost per 

Entity For 

Size

1,000 to 1,499 

Employees

Waste 

Treatment

MWCs 562 $12.5 

million

$1,677 0.1% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0%

Since the SBA’s business size definitions (http://www.sba.gov/size) apply to an establishment’s ultimate parent company, we assume in this analysis that the 

enterprise definition above is consistent with the concept of ultimate parent company that is typically used for Small Business Regulatory Enforcement Fairness 

Act (SBREFA) screening analyses.

1 NAICS codes 221111, 221112, 221113, 221119, 221121, 221122 – A firm is small if, including its affiliates, it is primarily engaged in the generation, 

transmission, and/or distribution of electric energy for sale and its total electric output for the preceding fiscal year did not exceed 4 million megawatt hours.

2

500 to 1,500. For NAICS code 324110: For purposes of Government procurement, the petroleum refiner must be a concern that has no more than 1,500 

employees nor production greater than 125,000 barrels per calendar day total Operable Atmospheric Crude Oil Distillation capacity. Capacity includes owned or 

leased facilities as well as facilities under a processing agreement or an arrangement such as an exchange agreement or a throughput. The total product to be

delivered under the contract must be at least 90 percent refined by the successful bidder from either crude oil or bona fide feedstocks.

3 NAICS Subsectors 333, 334, 335 and 336: For rebuilding machinery or equipment on a factory basis, or equivalent, use the NAICS code for a newly 

manufactured product. Concerns performing major rebuilding or overhaul activities do not necessarily have to meet the criteria for being a “manufacturer”

although the activities may be classified under a manufacturing NAICS code. Ordinary repair services or preservation are not considered rebuilding.

4

Subsector 486: Pipeline Transportation (486110 Pipeline Transportation of Crude Oil 1,500, 486210 Pipeline Transportation of Natural Gas $7.0 million, 486910 

Pipeline Transportation of Refined Petroleum Products 1,500, 486990 All Other Pipeline Transportation $34.5 million)
81

Table 6.12. Title V Avoided Costs for Small New Commercial Sources of GHG Emissions Compared to Annual Sales Revenue

Sector Source Category NAICS

SBA Size 

Standard 

(effective 

August 11, 

2008)

Average Cost 

Per Entity 

($1,000/entity)

Avoided 

Cost to 

Average 

Sales 

Revenues 

for All 

Enterprises

Avoided 

Cost to 

Sales 

Revenues 

Size <20 

Employees

Avoided 

Cost to 

Sales 

Revenues

Size

20 to 99 

Employees

Avoided 

Cost to 

Sales 

Revenues

Size 

100 to 499 

Employees

Avoided 

Cost to 

Sales 

Revenues

Size

500 to 749 

Employees

Avoided 

Cost to 

Sales 

Revenues

Size

750 to 999 

Employees

Avoided Cost 

to Sales 

Revenues

Size

1,000 to 1,499 

Employees

Commercial Education 61 7.0–35.0 $23,175 0.82% 6.12% 1.05% 0.34% 0.19% 0.12% 0.10%

Commercial Enclosed Mall 531120 7 $23,175 1.35% 2.45% 0.38% 0.21% 0.13% 0.19% 0.10%

Commercial Food Sales $23,175 NA NA NA NA NA NA NA

Commercial Food Service 722 7.0–20.5 $23,175 3.12% 7.25% 1.87% 1.49% 1.73% 1.83% 1.75%

Commercial Inpatient Health Care 622 34.5 $23,175 0.03% 1.21% 0.41% 0.12% 0.05% 0.04% 0.02%

Commercial Laboratory 541380 12 $23,175 1.17% 3.87% 0.82% 0.54% 0.32% 0.30% 0.79%

Commercial Laboratory 5417 7 $23,175 0.45% 2.69% 0.39% 0.15% 0.12% 0.13% 0.12%

Commercial Lodging 721 7 $23,175 1.01% 5.14% 1.14% 0.46% 0.41% 0.20% 0.35%

Commercial Nonrefrigerated 

Warehouse

49311 25.5 $23,175 1.06% 3.08% 0.85% 0.54% 1.42% 0.79% 0.67%

Commercial Nursing 623 7.0–13.5 $23,175 1.08% 7.43% 1.45% 0.87% 0.95% 0.88% 0.65%

Commercial Office 531120 7 $23,175 1.35% 2.45% 0.38% 0.21% 0.13% 0.19% 0.10%

Commercial Other 81 7.0–25.0 $23,175 3.49% 6.15% 1.04% 0.56% 0.67% 0.72% 0.90%

Commercial Outpatient Health Care 621 7.0–34.5 $23,175 1.94% 3.61% 0.82% 0.60% 0.54% 0.58% 0.42%

Commercial Public Assembly 71 7 $23,175 1.50% 4.26% 1.00% 0.25% 0.19% NA 0.12%

Commercial Public Order and 

Safety

$23,175 NA NA NA NA NA NA NA

Commercial Refrigerated 

Warehouse

49312 25.5 $23,175 0.46% 2.62% 0.62% 0.38% NA NA 0.36%

Commercial Religious Worship 813110 7 $23,175 4.19% 9.22% 1.09% 0.21% 0.16% 0.05% 0.06%

Commercial Retail Other than Mall 44–45 7.0–29.0 $23,175 0.72% 2.39% 0.34% 0.27% 0.42% 0.60% 0.61%

Commercial Service 81 7.0–25.0 $23,175 3.49% 6.15% 1.04% 0.56% 0.67% 0.72% 0.90%

Commercial Strip Shopping Mall 531120 7 $23,175 1.35% 2.45% 0.38% 0.21% 0.13% 0.19% 0.10%

(continued)
82

Table 6.12. Title V Avoided Costs for Small New Commercial Sources of GHG Emissions Compared to Annual Sales Revenue 

(continued)

Sector Source Category NAICS

SBA Size 

Standard 

(effective 

August 11, 

2008)

Average Cost 

Per Entity 

($1,000/entity)

Avoided 

Cost to 

Average 

Sales 

Revenues 

for All 

Enterprises

Avoided 

Cost to 

Sales 

Revenues 

Size <20 

Employees

Avoided 

Cost to 

Sales 

Revenues

Size

20 to 99 

Employees

Avoided 

Cost to 

Sales 

Revenues

Size 

100 to 499 

Employees

Avoided 

Cost to 

Sales 

Revenues

Size

500 to 749 

Employees

Avoided 

Cost to 

Sales 

Revenues

Size

750 to 999 

Employees

Avoided Cost 

to Sales 

Revenues

Size

1,000 to 1,499 

Employees

Residential Residential 531110 7 $23,175 2.33% 3.23% 0.70% 0.84% 0.81% NA NA

The Census Bureau defines an enterprise as a business organization consisting of one or more domestic establishments that were specified under common ownership or control. 

The enterprise and the establishment are the same for single-establishment firms. Each multi-establishment company forms one enterprise—the enterprise employment and annual 

payroll is summed from the associated establishments. Enterprise size designations are determined by the summed employment of all associated establishments.

Since the SBA’s business size definitions (http://www.sba.gov/size) apply to an establishment’s ultimate parent company, we assume in this analysis that the enterprise definition

above is consistent with the concept of ultimate parent company that is typically used for SBREFA screening analyses.

NAICS code 611519: Job Corps Centers. For classifying a Federal procurement, the purpose of the solicitation must be for the management and operation of a U.S. Department of 

Labor Job Corps Center. The activities involved include admissions activities, life skills training, educational activities, comprehensive career preparation activities, career

development activities, career transition activities, as well as the management and support functions and services needed to operate and maintain the facility. For SBA assistance as 

small business concern, other than for Federal Government procurements, a concern must be primarily engaged in providing the services to operate and maintain Federal Job Corps 

Centers.

NAICS code 541711 and 541712: For research and development contracts requiring the delivery of a manufactured product, the appropriate size standard is that of the 

manufacturing industry.
83

Table 6.13. Avoided Costs for Small Modifying Commercial PSD GHG Emission Sources Compared to Annual Sales Revenue

Sector Source Category NAICS

SBA Size 

Standard 

(effective 

August 11, 

2008)

Average Cost 

Per Entity 

($1,000/entity)

Avoided 

Cost to 

Average 

Sales 

Revenues 

for All 

Enterprises

Avoided 

Cost to 

Sales 

Revenues 

Size <20 

Employees

Avoided 

Cost to 

Sales 

Revenues 

Size 20 to 

99 

Employees

Avoided 

Cost to 

Sales 

Revenues 

Size 100 to 

499 

Employees

Avoided 

Cost to 

Sales 

Revenues 

Size

500 to 749 

Employees

Avoided 

Cost to 

Sales 

Revenues 

Size

750 to 999 

Employees

Avoided Cost 

to Sales 

Revenues 

Size

1,000 to 1,499 

Employees

Commercial Education 61 7.0–35.0 $59,152 2.10% 15.61% 2.67% 0.87% 0.49% 0.31% 0.25%

Commercial Enclosed Mall 531120 7 $59,152 3.45% 6.26% 0.96% 0.53% 0.34% 0.50% 0.25%

Commercial Food Sales $59,152 NA NA NA NA NA NA NA

Commercial Food Service 722 7.0–20.5 $59,152 7.97% 18.52% 4.78% 3.80% 4.42% 4.66% 4.46%

Commercial Inpatient Health Care 622 34.5 $59,152 0.08% 3.09% 1.05% 0.30% 0.13% 0.09% 0.06%

Commercial Laboratory 541380 12 $59,152 2.98% 9.88% 2.08% 1.38% 0.83% 0.76% 2.01%

Commercial Laboratory 5417 7 $59,152 1.15% 6.88% 1.01% 0.38% 0.31% 0.34% 0.32%

Commercial Lodging 721 7 $59,152 2.59% 13.12% 2.91% 1.16% 1.05% 0.51% 0.89%

Commercial Nonrefrigerated 

Warehouse

49311 25.5 $59,152 2.70% 7.87% 2.17% 1.37% 3.62% 2.01% 1.71%

Commercial Nursing 623 7.0–13.5 $59,152 2.76% 18.96% 3.70% 2.22% 2.43% 2.25% 1.65%

Commercial Office 531120 7 $59,152 3.45% 6.26% 0.96% 0.53% 0.34% 0.50% 0.25%

Commercial Other 81 7.0–25.0 $59,152 8.91% 15.71% 2.66% 1.43% 1.71% 1.84% 2.28%

Commercial Outpatient Health Care 621 7.0–34.5 $59,152 4.95% 9.20% 2.08% 1.54% 1.38% 1.49% 1.08%

Commercial Public Assembly 71 7 $59,152 3.84% 10.88% 2.55% 0.63% 0.48% NA 0.31%

Commercial Public Order and Safety $59,152 NA NA NA NA NA NA NA

Commercial Refrigerated Warehouse 49312 25.5 $59,152 1.17% 6.69% 1.58% 0.97% NA NA 0.92%

Commercial Religious Worship 813110 7 $59,152 10.68% 23.53% 2.77% 0.54% 0.40% 0.13% 0.16%

Commercial Retail Other than Mall 44-45 7.0–29.0 $59,152 1.84% 6.09% 0.88% 0.69% 1.08% 1.52% 1.56%

Commercial Service 81 7.0–25.0 $59,152 8.91% 15.71% 2.66% 1.43% 1.71% 1.84% 2.28%

Commercial Strip Shopping Mall 531120 7 $59,152 3.45% 6.26% 0.96% 0.53% 0.34% 0.50% 0.25%

(continued)
84

Table 6.13. Avoided Costs for Small Modifying Commercial PSD GHG Emission Sources Compared to Annual Sales Revenue 

(continued)

Sector Source Category NAICS

SBA Size 

Standard 

(effective 

August 11, 

2008)

Average Cost 

Per Entity 

($1,000/entity)

Avoided 

Cost to 

Average 

Sales 

Revenues 

for All 

Enterprises

Avoided 

Cost to 

Sales 

Revenues 

Size <20 

Employees

Avoided 

Cost to 

Sales 

Revenues 

Size 20 to 

99 

Employees

Avoided 

Cost to 

Sales 

Revenues 

Size 100 to 

499 

Employees

Avoided 

Cost to 

Sales 

Revenues 

Size

500 to 749 

Employees

Avoided 

Cost to 

Sales 

Revenues 

Size

750 to 999 

Employees

Avoided Cost 

to Sales 

Revenues 

Size

1,000 to 1,499 

Employees

Residential Residential 531110 7 $59,152 5.95% 8.25% 1.78% 2.15% 2.07% NA NA

The Census Bureau defines an enterprise as a business organization consisting of one or more domestic establishments that were specified under common ownership or control. 

The enterprise and the establishment are the same for single-establishment firms. Each multi-establishment company forms one enterprise—the enterprise employment and annual 

payroll is summed from the associated establishments. Enterprise size designations are determined by the summed employment of all associated establishments.

Since the SBA’s business size definitions (http://www.sba.gov/size) apply to an establishment’s ultimate parent company, we assume in this analysis that the enterprise definition

above is consistent with the concept of ultimate parent company that is typically used for SBREFA screening analyses.

NAICS code 611519: Job Corps Centers. For classifying a Federal procurement, the purpose of the solicitation must be for the management and operation of a U.S. Department of 

Labor Job Corps Center. The activities involved include admissions activities, life skills training, educational activities, comprehensive career preparation activities, career

development activities, career transition activities, as well as the management and support functions and services needed to operate and maintain the facility. For SBA assistance as 

small business concern, other than for Federal Government procurements, a concern must be primarily engaged in providing the services to operate and maintain Federal Job Corps 

Centers.

NAICS code 541711 and 541712: For research and development contracts requiring the delivery of a manufactured product, the appropriate size standard is that of the 

manufacturing industry.
85

Table 6.14. Avoided Costs to Small PSD New Commercial GHG Emission Sources

Sector Source Category NAICS

SBA Size 

Standard 

(effective 

August 11, 

2008)

Average Cost 

Per Entity 

($1000/entity)

Avoided 

Cost to 

Average 

Sales 

Revenues 

for All 

Enterprises

Avoided 

Cost to 

Sales 

Revenues 

Size <20 

employees

Avoided 

Cost to 

Sales 

Revenues 

Size

20 to 99 

employees

Avoided 

Cost to 

Sales 

Revenues 

Size

100 to 499 

employees

Avoided 

Cost to 

Sales 

Revenues 

Size

500 to 749 

employees

Avoided 

Cost to 

Sales 

Revenues 

Size

750 to 999 

employees

Avoided Cost 

to Sales 

Revenues 

Size

1,000 to 1,499 

employees

Commercial Education 61 7.0–35.0 $82,327 2.92% 21.74% 3.72% 1.21% 0.68% 0.43% 0.34%

Commercial Enclosed Mall 531120 7 $82,327 4.80% 8.71% 1.34% 0.74% 0.47% 0.69% 0.35%

Commercial Food Sales $82,327 NA NA NA NA NA NA NA

Commercial Food Service 722 7.0–20.5 $82,327 11.09% 25.78% 6.65% 5.29% 6.15% 6.49% 6.21%

Commercial Inpatient Health Care 622 34.5 $82,327 0.11% 4.30% 1.46% 0.42% 0.18% 0.13% 0.08%

Commercial Laboratory 541380 12 $82,327 4.14% 13.76% 2.90% 1.92% 1.15% 1.06% 2.80%

Commercial Laboratory 5417 7 $82,327 1.59% 9.57% 1.40% 0.53% 0.42% 0.48% 0.44%

Commercial Lodging 721 7 $82,327 3.60% 18.26% 4.05% 1.62% 1.46% 0.71% 1.23%

Commercial Nonrefrigerated 

Warehouse

49311 25.5 $82,327 3.76% 10.96% 3.02% 1.91% 5.04% 2.79% 2.38%

Commercial Nursing 623 7.0–13.5 $82,327 3.84% 26.40% 5.15% 3.09% 3.38% 3.13% 2.30%

Commercial Office 531120 7 $82,327 4.80% 8.71% 1.34% 0.74% 0.47% 0.69% 0.35%

Commercial Other 81 7.0–25.0 $82,327 12.41% 21.87% 3.70% 2.00% 2.38% 2.56% 3.18%

Commercial Outpatient Health Care 621 7.0–34.5 $82,327 6.89% 12.81% 2.90% 2.14% 1.93% 2.08% 1.51%

Commercial Public Assembly 71 7 $82,327 5.35% 15.15% 3.55% 0.87% 0.67% NA 0.43%

Commercial Public Order and Safety $82,327 NA NA NA NA NA NA NA

Commercial Refrigerated Warehouse 49312 25.5 $82,327 1.63% 9.31% 2.20% 1.35% NA NA 1.28%

Commercial Religious Worship 813110 7 $82,327 14.87% 32.77% 3.86% 0.75% 0.56% 0.18% 0.22%

Commercial Retail Other than Mall 44-45 7.0–29.0 $82,327 2.57% 8.48% 1.22% 0.97% 1.50% 2.12% 2.17%

Commercial Service 81 7.0–25.0 $82,327 12.41% 21.87% 3.70% 2.00% 2.38% 2.56% 3.18%

Commercial Strip Shopping Mall 531120 7 $82,327 4.80% 8.71% 1.34% 0.74% 0.47% 0.69% 0.35%

(continued)
86

Table 6.14. Avoided Costs to Small PSD New Commercial GHG Emission Sources (continued)

Sector Source Category NAICS

SBA Size 

Standard 

(effective 

August 11, 

2008)

Average Cost 

Per Entity 

($1000/entity)

Avoided 

Cost to 

Average 

Sales 

Revenues 

for All 

Enterprises

Avoided 

Cost to 

Sales 

Revenues 

Size <20 

employees

Avoided 

Cost to 

Sales 

Revenues 

Size

20 to 99 

employees

Avoided 

Cost to 

Sales 

Revenues 

Size

100 to 499 

employees

Avoided 

Cost to 

Sales 

Revenues 

Size

500 to 749 

employees

Avoided 

Cost to 

Sales 

Revenues 

Size

750 to 999 

employees

Avoided Cost 

to Sales 

Revenues 

Size

1,000 to 1,499 

employees

Residential Residential 531110 7 $82,327 8.29% 11.49% 2.48% 2.99% 2.89% NA NA

The Census Bureau defines an enterprise as a business organization consisting of one or more domestic establishments that were specified under common ownership or control. The 

enterprise and the establishment are the same for single-establishment firms. Each multi-establishment company forms one enterprise—the enterprise employment and annual payroll is 

summed from the associated establishments. Enterprise size designations are determined by the summed employment of all associated establishments.

Since the SBA’s business size definitions (http://www.sba.gov/size) apply to an establishment’s ultimate parent company, we assume in this analysis that the enterprise definition above 

is consistent with the concept of ultimate parent company that is typically used for SBREFA screening analyses.

NAICS code 611519: Job Corps Centers. For classifying a Federal procurement, the purpose of the solicitation must be for the management and operation of a U.S. Department of 

Labor Job Corps Center. The activities involved include admissions activities, life skills training, educational activities, comprehensive career preparation activities, career development 

activities, career transition activities, as well as the management and support functions and services needed to operate and maintain the facility. For SBA assistance as small business 

concern, other than for Federal Government procurements, a concern must be primarily engaged in providing the services to operate and maintain Federal Job Corps Centers.

NAICS code 541711 and 541712: For research and development contracts requiring the delivery of a manufactured product, the appropriate size standard is that of the manufacturing 

industry.
87

Section 7

Statutory and Executive Order Reviews

7.1 Executive Order 12866 - Regulatory Planning and Review

Under section 3(f)(1) of Executive Order (EO) 12866 (58 FR 51735, October 4, 1993), 

this action is an "economically significant regulatory action” because it is likely to have an 

annual effect on the economy of $100 million or more. Accordingly, EPA submitted this action 

to the Office of Management and Budget (OMB) for review under EO 12866 and any changes 

made in response to OMB recommendations have been documented in the docket for this action.

In addition, EPA prepared an analysis of the potential costs and benefits associated with 

this action. This analysis is contained in the RIA for this final rule. A copy of the analysis is 

available in the docket for this action and the analysis is briefly summarized in section VII of this 

preamble.

This rule uses a phased-in approach for requiring larger sources of GHG emissions to 

comply with title V operating permit and PSD statutory requirements, essentially lifting this 

burden for a period of at least 6 years for a large number of sources of GHG. Thus, this rule 

provides regulatory relief rather than regulatory requirements for these GHG sources. For 

sources of GHG that will be required to obtain title V permits and/or comply with PSD 

requirements, there are no direct economic burdens or costs as a result of this final rule, because 

these requirements are not imposed as a result of this rulemaking. Statutory requirements to 

obtain a title V operating permit or to adhere to PSD requirements are already mandated by the 

CAA and by existing rules, not by this rule. As a result, this Tailoring rule annual effect on the 

economy will be positive because it will result in billions of dollars of regulatory relief during 

the phase-in period.

7.2 Paperwork Reduction Act

This action does not impose any new information collection burden. Instead, this action 

will significantly reduce costs incurred by sources and permitting authorities relative to the costs 

that would be incurred if EPA did not revise the rule. Based on our revised GHG threshold data 

analysis, we estimate that over 80,000 new and modified facilities per year would be subject to 

PSD review based on applying a GHG emissions threshold of 100/250 tpy using a CO2e metric. 

This is compared to 280 PSD permits currently issued per year, which is an increase of more 

than 280-fold. Similarly, for title V, we estimate that over six million new sources would be 
88

affected at the 100-tpy threshold for GHGs using the CO2e metric. By increasing the volume of 

permits by over 400 times, the administrative burden would be unmanageable without this rule.

However, OMB has previously approved the information collection requirements 

contained in the existing regulations for PSD (see, e.g., 40 CFR 52.21) and title V (see 40 CFR 

parts 70 and 71) under the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. 

and has assigned OMB control number 2060-0003 and OMB control number 2060-0336. The 

OMB control numbers for EPA’s regulations in 40 CFR are listed in 40 CFR part 9.

7.3 Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA) generally requires an agency to prepare a 

regulatory flexibility analysis of any rule subject to notice and comment rulemaking 

requirements under the APA or any other statute unless the agency certifies that the rule will not 

have a significant economic impact on a substantial number of small entities. Small entities 

include small businesses, small organizations, and small governmental jurisdictions.

For purposes of assessing the impacts of this final action on small entities, small entity is 

defined as: (1) a small business that is a small industrial entity as defined in the U.S. SBA size 

standards (see 13 CFR 121.201); (2) a small governmental jurisdiction that is a government of a 

city, county, town, school district, or special district with a population of less than 50,000; or (3) 

a small organization that is any not-for-profit enterprise that is independently owned and 

operated and is not dominant in its field.

After considering the economic impacts of this final rule on small entities, the 

Administrator certified that this final action will not have a significant economic impact on a 

substantial number of small entities. In determining whether a rule has a significant economic 

impact on a substantial number of small entities, the impact of concern is any significant adverse

economic impact on small entities, since the primary purpose of the regulatory flexibility

analyses is to identify and address regulatory alternatives “which minimize any significant 

economic impact of the rule on small entities.” 5 USC 603 and 604. Thus, an agency may

certify that a rule will not have a significant economic impact on a substantial number of small 

entities if the rule relieves regulatory burden, or otherwise has a positive economic effect on all 

of the small entities subject to the rule. 

We have therefore concluded that this final rule will relieve the regulatory burden for 

most affected small entities associated with the major PSD and title V operating permits 
89

programs for new or modified major sources that emit GHGs, including small businesses. This 

is because this rule raises the major source applicability thresholds for these programs for the 

sources that emit GHGs. As a result, the program changes provided in this rule are not expected 

to result in a significant economic impact on a substantial number of small entities. 

7.4 Unfunded Mandates Reform Act

This rule does not contain a federal mandate that may result in expenditures of $100 

million or more for state, local, and tribal governments, in the aggregate, or the private sector in 

any 1 year. Only those few states whose permitting authorities do not implement the federal 

PSD and title V rules by reference in their SIPs will have a small increase in burden. These 

states will have to amend their corresponding SIPs to incorporate the new applicability

thresholds, since the burden reducing thresholds that we are finalizing with this rule will not 

otherwise apply to the PSD and title V programs. Thus, this rule is not subject to the 

requirements of sections 202 or 205 of UMRA.

This rule is also not subject to the requirements of section 203 of UMRA because it 

contains no regulatory requirements that might significantly or uniquely affect small 

governments. As discussed earlier, this rule is expected to result in cost savings and an 

administrative burden reduction for all permitting authorities and permittees, including small 

governments.

7.5 Executive Order 13132 – Federalism

This action does not have federalism implications. It will not have substantial direct 

effects on the states, on the relationship between the national government and the states, or on 

the distribution of power and responsibilities among the various levels of government, as 

specified in Executive Order 13132. These final amendments will ultimately simplify and 

reduce the burden on state and local agencies associated with implementing the PSD and title V 

operating permits programs, by providing that a source whose GHG emissions are below the 

proposed levels will not have to obtain a PSD permit or title V permit. Thus, Executive Order 

13132 does not apply to this action.

In the spirit of Executive Order 13132, and consistent with EPA policy to promote 

communications between EPA and state and local governments, EPA specifically solicited 

comment on the proposed rule from state and local officials.
90

7.6 Executive Order 13175 - Consultation and Coordination with Indian Tribal 

Governments

Subject to the Executive Order 13175 (65 FR 67249, November 9, 2000) EPA may not 

issue a regulation that has tribal implications, that imposes substantial direct compliance costs, 

and that is not required by statute, unless the federal government provides the funds necessary to 

pay the direct compliance costs incurred by tribal governments, or EPA consults with tribal 

officials early in the process of developing the proposed regulation and develops a tribal 

summary impact statement. 

EPA has concluded that this action may have tribal implications. However, it will neither 

impose substantial direct compliance costs on tribal governments, nor preempt Tribal law. There 

are no tribal authorities currently issuing major NSR permits; therefore, it will not currently 

impose direct compliance costs on tribal governments. 

EPA consulted with tribal officials early in the process of developing this regulation to 

allow them to have meaningful and timely input into its development by publishing an ANPR 

that included PSD GHG tailoring options for regulating GHGs under the CAA. (73 FR 44354, 

July 30, 2008) As a result of the ANPR, EPA received several comments from tribal officials on 

differing PSD GHG tailoring options presented in the ANPR which were considered in the 

proposal and this final rule. Additionally, we also specifically solicited comment from tribal 

officials on the proposed rule (74 FR 55292, October 27, 2009). 

As required by section 7(a) of Executive Order 13175, EPA’s Tribal Consultation 

Official has certified that the requirements of the Executive Order have been met in a meaningful 

and timely manner. A copy of the certification is included in the docket for this action.

7.7 Executive Order 13045 - Protection of Children from Environmental Health and 

Safety Risks

EPA interprets EO 13045 (62 FR 19885, April 23, 1997) as applying only to those 

regulatory actions that concern health or safety risks, such that the analysis required 

under section 5-501 of the EO has the potential to influence the regulation. This action is 

not subject to EO 13045 because it does not establish an environmental standard intended 

to mitigate health or safety risks.
91

7.8 Executive Order 13211 - Actions That Significantly Affect Energy Supply, 

Distribution, or Use

This action is not a “significant energy action” as defined in Executive Order 13211(66 

FR 28355 (May 22, 2001)), because it is not likely to have a significant adverse effect on the 

supply, distribution, or use of energy. Further, we have concluded that this rule is not likely to 

have any adverse energy effects because this action would not create any new requirements for 

sources in the energy supply, distribution, or use sectors. 

7.9 National Technology Transfer and Advancement Act

Section 12(d) of the National Technology Transfer and Advancement Act of 1995 

("NTTAA"), Public Law No. 104-113, 12(d) (15 U.S.C. 272 note) directs EPA to use voluntary

consensus standards in its regulatory activities unless to do so would be inconsistent with 

applicable law or otherwise impractical. Voluntary consensus standards are technical standards 

(e.g., materials specifications, test methods, sampling procedures, and business practices) that are 

developed or adopted by voluntary consensus standards bodies. The NTTAA directs EPA to 

provide Congress, through OMB, explanations when the Agency decides not to use available and 

applicable voluntary consensus standards. 

This action does not involve technical standards. Therefore, EPA did not consider the 

use of any voluntary consensus standards.

7.10 Executive Order 12898 – Federal Actions to Address Environmental Justice in 

Minority Populations and Low-Income Populations

Executive Order (EO) 12898 (59 FR 7629 (Feb. 16, 1994)) establishes federal executive 

policy on environmental justice. Its main provision directs federal agencies, to the greatest 

extent practicable and permitted by law, to make environmental justice part of their mission by

identifying and addressing, as appropriate, disproportionately high and adverse human health or 

environmental effects of their programs, policies, and activities on minority populations and lowincome populations in the United States. 

EPA has concluded that it is not practicable to determine whether there would be 

disproportionately high and adverse human health or environmental effects on minority and/or 

low income populations from this rule. This rule is necessary in order to allow for the continued 

implementation of permitting requirements established in the statute. Specifically, without this 

rule, the CAA permitting programs (PSD and Title V) would become overwhelmed and 
92

unmanageable by the millions of GHG sources that would become newly subject to them. This 

would result in severe impairment of the functioning of these programs with potentially adverse 

human health and environmental effects nationwide. Under this rule and the legal doctrines of 

absurd results, administrative necessity, and one-step-at-a-time, EPA is ensuring that the CAA 

permitting programs continue to operate by limiting their applicability to the maximum number 

of sources the programs can possibly handle. This approach is consistent with congressional 

intent as it allows PSD applicability to at least the largest sources initially, at least to as many

more sources as possible, and as promptly as possible over time. By doing so, this rule allows 

for the maximum degree of environmental protection possible while providing regulatory relief 

for the unmanageable burden that would otherwise exist. Therefore, we believe it is not 

practicable to identify and address disproportionately high and adverse human health or 

environmental effects on minority populations and low income populations in the United States 

under this final rule.

7.11 Congressional Review Act

The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the Small Business 

Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take 

effect, the agency promulgating the rule must submit a rule report, which includes a copy of the 

rule, to each House of the Congress and to the Comptroller General of the United States. EPA 

will submit a report containing this rule and other required information to the U.S. Senate, the 

U.S. House of Representatives, and the Comptroller General of the United States prior to 

publication of the rule in the Federal Register. A Major rule cannot take effect until 60 days after 

it is published in the Federal Register. This action is a “major rule” as defined by 5 U.S.C. 

804(2).
93

Section 8

Limitations and Uncertainties

The benefits, costs and economic impacts estimated in this RIA are subject to limitations 

and uncertainties. The benefits of this rule are the regulatory relief provided to small sources of 

GHG and permitting authorities. Regulatory relief estimates are provided for the final rule Steps 

1, 2 and 3 on an annual basis as well as for the full phase-in period. The benefits or avoided 

permitting are based upon the best data available currently regarding sources affected and burden 

cost estimates but are subject to uncertainties. 

Benefit Estimate Limitations and Uncertainties 

Uncertainties exist in the affected source counts at different thresholds used to estimate 

regulatory relief due to the absence of a comprehensive data set of facility-level GHG emissions 

across all sectors on which to base the number of facilities subject to title V and PSD permitting 

at alternative regulatory thresholds. These affected source counts are multiplied by the permit 

burden cost estimates to derive the benefits (regulatory relief) estimates for the rule. Specific 

uncertainties in the estimates of affected sources, burden estimates and other limitations of the 

benefits analysis are discussed below.

a. Uncertainties in Estimates of Affected Sources

In order to estimate the number of facilities that exceed a given GHG threshold (such as a 

100 or 250 tpy CO2e emission threshold for baseline analysis), it is necessary to have emissions 

inventory data at the facility or building level, including, and particularly for lower threshold 

scenarios, numerous small sources in the residential and commercial sectors (e.g., apartment 

buildings and office buildings). Historically, however, EPA has not collected sector-wide, 

facility-level information for GHG emissions under the CAA (with the exception of information 

from electric generating units required to report CO2 emissions under the Acid Rain Program 

reporting requirements). To date, national EPA inventories of GHG sources have primarily 

focused on ‘top-down’ estimates of GHG emissions from sectors and sources, and not facilitylevel estimates. As a result, many of the uncertainties described here result from the absence of a 

comprehensive data set of facility-level GHG emissions across all sectors. 

For residential, commercial, and smaller manufacturing operations, our current analysis 

relies on sample facility datasets and ‘top-down’ sector data (e.g., national fuel consumption 

statistics and/or building characteristics). There are inherent uncertainties in developing source 
94

counts from the allocation of these nationally aggregated statistics. The allocation factors we 

used, based on U.S. Energy Information Administration statistical sampling procedures and 

energy consumption statistics, are likely the best available to estimate the population of 

residential, commercial, and small manufacturing sources exceeding different GHG thresholds. 

However, uncertainties may result in either overestimating or underestimating GHG emissions 

for a given individual facility. It is worth noting that our estimates for the largest GHG emitting 

sources, such as electric utilities and refineries, are derived from bottom-up calculations of 

individual facility/building emissions so that there is increased certainty in evaluating and 

comparing the facility counts at the higher GHG threshold scenarios where residential and 

commercial sources are not highly affected. Although there are different levels of uncertainty in 

our facility level estimates across sectors, we do believe that the data are sufficiently robust to 

use in the aggregate to assess national permitting level impacts. 

EPA’s estimate of affected sources is based on their potential to emit emissions, as 

opposed to actual emission levels. PTE is defined as the maximum capacity of a stationary

source to emit a pollutant under its physical and operational design, including certain legal 

limitations, for example, on emissions or hours of operation. PSD and Title V programs both use 

PTE for defining and identifying major sources. Although we have attempted to identify

reasonable adjustments to account for PTE in our methodology, there are significant 

uncertainties in our PTE-based estimates, particularly for the commercial, residential and small 

manufacturing sectors that have not traditionally been subject to any form of air permitting. In 

practice, for example, for the residential sector and for many of the facilities in the commercial 

sector, where CO2 emissions are primarily due to space heating/appliance usage, the combustion 

units are not likely to be used constantly at their maximum rated capacity because heating is not 

needed year-round and heating systems have thermostats. However, for our analysis we do 

assume full PTE-based estimates for the residential and commercial sectors, using PTE 

adjustment factors of 10 and 6.6, respectively to adjust actual emissions to PTE level. Absent 

industry specific data, for small manufacturing source categories we assume a PTE adjustment 

factor of 2; individual manufacturing facilities may operate their combustion equipment at levels 

above and below this capacity utilization rate, but we believe this PTE adjustment reflects a 

reasonable average rate across the variety of small manufacturing facilities included in the 

threshold analysis. Ultimately, the number of sources brought into either the PSD or Title V 
95

programs due solely to their PTE would depend on how EPA interprets PTE for various types of 

emitting equipment (e.g., space-heating furnaces in residential and commercial buildings), and 

the extent to which streamlined mechanisms are made available for sources to obtain legal limits 

on their PTE so that the programs are not applicable. No such decisions or interpretations have 

been made at this point and, as mentioned in the preamble, they will require significant time to 

develop. As a result, our threshold analysis uniformly assumes that no PTE limits are in place 

for any of the affected sectors, which may likely be the case in the immediate stages of GHG 

permitting for affected sources.

There is significant uncertainty in both our modification rate for newly major GHG 

sources and in our estimate of modification activity at existing major sources that will become 

subject to PSD review for GHG emission increases. The general uncertainty results from 

predicting not only how many major sources will undergo physical or operational changes in any 

given year, but also which of those changes would result in GHG emissions increases that would 

exceed a proposed GHG significance level. First, information is not available across sectors and 

source categories on the types and numbers of specific physical and operational changes that 

would result in GHG emissions increases in amounts that can be estimated and that therefore can 

be compared to various GHG emissions significance levels. Second, there is uncertainty in how 

many project modifications will occur within any given year because decisions on these projects 

are driven by facility- and sector-based growth patterns and business planning decisions. Lastly, 

some source categories and units that emit GHGs have not previously been subject to any type of 

permitting or reporting requirements; as a result, for these sources, there is very little historical 

record for use in estimating the number and types of projects that would occur at these sources 

and, in turn, establish an appropriate significance level for GHGs. 

b. Uncertainties in Permitting Costs

The permit burden cost estimates that are multiplied by the source counts to derive the 

benefits of the rule are also subject to uncertainty. As noted Attachment C to the RIA, the 

primary reference sources for our estimate of burden hours and costs for permitting GHGs are 

the most recent ICRs for the PSD and title V programs. There a number of uncertainties 

introduced in using these references for costing GHG permitting activities. First, we are 

assuming that the average, conventional pollutant per-permit costs will be similar for GHGs. We 

do recognize the likelihood that residential and commercial permits would be simpler and have a 
96

lower per-permit burden than traditional industrial sources, and have made adjustments for this: 

however, for industrial sources we assume per-permit costs on par with what are estimated in the 

latest ICRs for PSD and title V programs. There is uncertainty in applying these average ICRbased costs to GHG permitting, even for industrial sources, because there is no historical track 

record for permitting these GHG sources and thus any cost efficiencies that have been realized 

over the years for conventional pollutant permitting, and thus reflected in the current ICRs, may

not be initially realized for GHG permitting. For example, we assume the same public hearing 

estimate as included in the ICR for current PSD permits (i.e., that 1 in 50 major PSD permits 

require a hearing)—for GHG sources this number may be higher initially if there ends up being 

significantly more public interest in these permits. We do believe overall, however, that larger 

facilities, especially those affected at higher threshold levels, will have had sufficient permitting 

experience such that out ICR-based costs should reasonably reflect the added burden of 

including GHGs. 

As mentioned above, in our burden scenario analyses we do discount the ICR-based perpermit costs for residential and commercial sources to reflect what we believe will generally be 

simpler permits, involving primarily uniform combustion type equipment. For PSD we discount 

the per-permit cost by 30%, and for title V we discount the per-permit cost by 50%. There is 

significant uncertainty in these estimated discounts since we have no track record for permitting 

these smaller commercial and residential sources. However, we do believe that, based solely on 

the type and uniformity of the GHG emission units that would be subject to permitting at these 

facilities under lower GHG threshold scenarios, that average per-permit costs would be less than 

those currently experienced by more complex industrial facilities, with numerous emission units, 

for currently regulated pollutants. 

c. Additional uncertainties and limitations of the benefits analysis

Current avoided permitting cost or regulatory relief estimates also do not include the 

avoided costs to comply with PSD BACT requirements due to lack of available data. This 

omission will tend to reduce the amount of regulatory relief that smaller sources of GHG 

reported in this RIA will experience during the phase-in period. In addition to the avoided 

BACT costs we are unable to quantify, there are likely general economic costs associated with 

requiring permitting for these smaller sources of GHG. Numerous public comments on the 

proposed rule spoke to the economic burden permitting would place on sources above the actual 
97

costs to obtain a permit. These costs might include delays or impediments to entering a new 

market or to expand existing facilities to accommodate economic growth. These avoided costs 

might be viewed as additional costs of doing business or barriers to entry for these smaller 

sources of GHG. The avoided economic costs of these possible additional costs or barriers to 

doing business have not been considered in the regulatory relief estimates provided for this final 

rule due to lack of available information on the nature and value of such avoided impacts. If 

such avoided cost estimates were available, these estimates would tend to increase the regulatory

relief burden reported for the final rule. 

For the multiple year regulatory relief estimates, we assume that the annual estimates can 

be extrapolated to multiple years without adjustment. This presumes that permitting activity 

would be constant over time. It is quite possible that permit activity for these smaller sources 

may grow over time with economic growth and will likely vary from year to year due to 

differences in business activity. However, we do not have sufficient information about these 

year-to-year variations nor expected growth in permitting to develop more precise estimates. 

Given the uncertainty in the annual relief estimates and the short time frame analyzed (five 

years), we feel it reasonable to not consider these potential yearly fluctuations for the phase-in 

period. Consideration of growth in permits over time would tend to increase the regulatory relief 

estimates reported for the final rule. 

In a similar manner, we do not discount the phase-in regulatory relief to the present in 

this final report. Since the analytical time period evaluated varies from annual up to five years, 

we feel this is a reasonable approach. Discounting the regulatory relief estimates to present 

values would tend to lower the present value total amount of regulatory relief reported. 

Social Cost Limitations and Uncertainties 

The social costs of this rule are the foregone environmental benefits that might occur 

during the phase-in period absent this rulemaking. This subject is discussed in Section 4 of the 

RIA. We are unable to estimate the PSD BACT requirements that would likely occur for the 

smaller sources of GHG at this time. Because BACT is a case-by-case decision and evolves over 

time, because we do not at this time have historical experience with the available controls for 

small-source GHG emissions, and because of the inherent uncertainty in describing the types of 

sources that would have triggered BACT absent this rule, we cannot quantify the emission 
98

reductions that might be feasible or the associated pollution control costs. For this reason, the 

social costs of this rule are discussed qualitatively in this RIA.

Economic Impact Limitations and Uncertainties

As previously discussed there is uncertainty in the estimates of sources affected by this 

final rule and the permitting burden costs used to estimate the benefits (regulatory relief) of this 

rule. These uncertainties also affect the economic impact analysis conducted. In the economic 

impact analysis, we compare the avoided permit burden cost estimates to average industry

revenues in order to gauge the magnitude of regulatory relief for affected sources. We used 

average industry revenue, and average firm revenue estimates by firm size to estimate avoidedcost-to-sales ratios due to lack of data specific to the sources actually obtaining regulatory relief. 

The actual benefits to individual firms affected by this rule may differ from industry averages.
99

Section 9

References

U.S. Census Bureau. Statistics of U.S. Businesses: 2002.

U.S. Department of Labor, Bureau of Labor Statistics. Consumer Price Index 2002-2007. 

http://www.bls.gov/cpi/.

U.S. Environmental Protection Agency. April 2010. Summary of Methodology and Data Use to

Estimate Burden Relief and Evaluate Resource Requirements at Alternative Greenhouse 

Gas Permitting Thresholds. (Appendix C) 

U.S. Environmental Protection Agency. April 2010. Technical Support Document for 

Greenhouse Gas Emissions Threshold Evaluation. (Appendix B)

U.S. Environmental Protection Agency. November 2006. Final Guidance for EPA Rulewriters: 

Regulatory Flexibility Act as Amended by the Small Business Regulatory Enforcement 

Fairness Act. http://www.epa.gov/sbrefa/documents/rfaguidance11-00-06.pdf.

U.S. Small Business Administration. Table of Small Business Size Standards. Accessed 8/11/08. 

http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf.
100

Attachment A

Source Categories Affected by the Rule with Industry Detail

Table A-1. Title V Sources Expected to Experience Regulatory Relief at Alternative 

Threshold Levels by Industry Category1

Title V Sources Experiencing Regulatory Relief at Alternative Thresholds

Source 

Category 25,000 tpy 50,000 tpy

Final Rule

Step 2

100,000 tpy

Final Rule

Step 1

Anyway

Electricity Generating Units 161 285 285 285

Adipic Acid Production 0 0 0 0

Aluminum Production 0 0 0 0

Ammonia Manufacturing 0 0 0 0

Cement Production 0 0 0 0

Electronics Manufacturing 134 145 177 190

Ferroalloy Production 0 0 0 0

Glass Production 247 247 247 247

HCFC-22 Production 0 0 0 3

Hydrogen Production 33 37 43 61

Iron and Steel Production 0 0 0 0

Lead Production 4 4 4 4

Lime Manufacturing 3 23 29 37

Magnesium Production 0 0 0 0

Nitric Acid Production 1 2 3 18

Petrochemical Production 0 0 0 0

Petroleum Refineries 3 3 3 3

Phosphoric Acid Production 0 0 0 0

Pulp and Paper Manufacturing 0 3 15 160

Silicon Carbide Production 0 0 0 0

Soda Ash Manufacturing 0 0 0 0

Titanium Dioxide Production 0 0 0 0

Zinc Production 3 3 3 3

Ethanol Production 54 54 97 119

Food Processing 3,438 3,438 3,438 3,438

Unspecified Industrial Stationary 

Combustion (Other Manufacturing 

and Industrial Facilities)

163,054 165,083 166,661 166,693

Underground Coal Mines 135 160 183 235

Oil and Natural Gas Systems 2,266 2,353 2,353 2,353

Landfills 1,430 2,447 3,164 3,357

MWCs 1 1 1 1

(continued)
101

Table A-1. Title V Sources Expected to Experience Regulatory Relief at Alternative 

Threshold Levels by Industry Category (continued)

Title V Sources Experiencing Regulatory Relief at Alternative Thresholds

Source 

Category 25,000 tpy 50,000 tpy

Final Rule

Step 2 100,000 

tpy

Final Rule

Step 1

Anyway

Stationary Combustion Equipment 

(Generators)

37,351 37,351 37,351 37,351

All Commercial—Stationary Fuel 

Combustion

1,354,760 1,355,321 1,355,870 1,355,921

Multi-Family Fuel Combustion 610,340 610,480 610,500 610,500

Single-Family Fuel Combustion 3,925,000 3,925,000 3,925,000 3,925,000

Total 6,098,352 6,102,374 6,105,361 6,105,913

1Thresholds are shown as tpy CO2e. Attachment B U.S. Environmental Protection Agency. April 2010. “Technical 

Support Document for Greenhouse Gas Emissions Threshold Evaluation.” See docket at EPA-HQ-OAR-2009-

0517. 

2Modifying PSD sources are also expected to experience regulatory relief, but these estimates are not reflected in 

this table.
102

Table A-2. New PSD Sources Expected to Experience Regulatory Relief at Alternative 

Threshold Levels by Industry Category

New PSD Sources Sources Experiencing Regulatory Relief at Alternative Thresholds1,2

Source 

Category 25,000 tpy 50,000 tpy

Final Rule

Step 2

100,000 tpy

Final Rule

Step 1

Anyway

Electricity 

Generating Units

20 29 33 93

Adipic Acid 

Production

0 0 0 0

Aluminum 

Production

0 0 0 0

Ammonia 

Manufacturing

0 0 0 0

Cement Production 0 0 0 0

Electronics 

Manufacturing

0 0 0 0

Ferroalloy 

Production

0 0 0 0

Glass Production 1 1 1 1

HCFC-22 Production 0 0 0 0

Hydrogen Production 0 0 0 0

Iron and Steel 

Production

0 0 0 0

Lead Production 0 0 0 0

Lime Manufacturing 0 0 0 0

Magnesium 

Production

0 0 0 0

Nitric Acid 

Production

0 0 0 0

Petrochemical 

Production

0 0 0 0

Petroleum Refineries 0 0 0 0

Phosphoric Acid 

Production

0 0 0 0

Pulp and Paper 

Manufacturing

0 0 0 0

Silicon Carbide 

Production

0 0 0 0

Soda Ash 

Manufacturing

0 0 0 0

(continued)
103

Table A-2. New PSD Sources Expected to Experience Regulatory Relief at Alternative 

Threshold Levels by Industry Category (continued)

New PSD Sources Sources Experiencing Regulatory Relief at Alternative Thresholds1,2

Source 

Category 25,000 tpy 50,000 tpy

Final Rule

Step 2

100,000 tpy

Final Rule

Step 1

Anyway

Titanium Dioxide 

Production

0 0 0 0

Zinc Production 0 0 0 0

Ethanol Production 4 4 7 10

Food Processing 41 47 47 47

Unspecified 

Industrial Stationary 

Combustion (Other 

Manufacturing and 

Industrial Facilities)

529 534 544 546

Underground Coal 

Mines

0 0 0 0

Oil and Natural Gas 

Systems

23 38 44 48

Landfills 0 0 0 0

MWCs 0 1 1 2

Stationary 

Combustion 

Equipment 

(Generators)

299 299 299 299

All Commercial -

Stationary Fuel 

Combustion

12,034 12,038 12,039 12,041

Multi-Family Fuel 

Combustion

6,397 6,400 6,400 6,400

Single-Family Fuel 

Combustion

515 515 515 515

All 19,863 19,906 19,930 20,002

1Regulatory alternatives reflect tons per year CO2e potential to emit. Attachment B U.S. Environmental Protection 

Agency. April 2010. “Technical Support Document for Greenhouse Gas Emissions Threshold Evaluation.” See 

docket at EPA-HQ-OAR-2009-0517. 

2Modifying PSD sources are also expected to experience regulatory relief, but these estimates are not reflected in 

this table.
Attachment B

Technical Support Document 

for Greenhouse Gas Emissions Thresholds 

Evaluation

Air Quality Policy Division

Office of Air Quality Policy and Standards

U.S. Environmental Protection Agency

March 29, 2010
i

Table of Contents

Page

1. Purpose....................................................................................................................................... 4

2. Overview.................................................................................................................................... 4

3. Emissions-based Threshold Analysis ........................................................................................ 5

3.1 General Description of Overall Approach ......................................................................... 5

3.1.1 Threshold Levels................................................................................................... 5

3.1.2 Greenhouse Gases................................................................................................. 6

3.1.3 Source Sectors....................................................................................................... 7

3.1.4 Potential to Emit Methodology ............................................................................. 8

3.1.5 New and Modified Sources................................................................................... 9

3.2 Threshold Summary Results.............................................................................................. 9

3.3 Electricity Generating Sector........................................................................................... 12

3.4 Industrial Sector............................................................................................................... 14

3.4.1 Data Sources........................................................................................................ 17

3.4.2 Potential to Emit.................................................................................................. 17

3.4.3 Methodology for New Units ............................................................................... 18

3.5 Methodology for Existing Unspecified Industrial Stationary Combustion Source 

Category Emissions....................................................................................................... 18

3.6 Methodology for Existing Specific Industrial Sectors Considering Combustion, 

Process, and Fugitive Emissions.................................................................................... 20
ii

3.6.1 Adipic Acid Production....................................................................................... 21

3.6.2 Aluminum Production......................................................................................... 23

3.6.3 Ammonia Production .......................................................................................... 25

3.6.4 Cement Production.............................................................................................. 26

3.6.5 Electronic Production.......................................................................................... 27

3.6.6 Ethanol Production.............................................................................................. 29

3.6.7 Ferroalloy Production.......................................................................................... 31

3.6.8 Food Processing .................................................................................................. 33

3.6.9 Glass Manufacturing ........................................................................................... 34

3.6.10 HCFC-22 Production......................................................................................... 35

3.6.11 Hydrogen Production ........................................................................................ 37

Table of Contents (cont.)

Page

3.6.12 Iron and Steel Production.................................................................................. 38

3.6.13 Lead Production ................................................................................................ 41

3.6.14 Lime .................................................................................................................. 42

3.6.15 Magnesium Production and Processing ............................................................ 43

3.6.16 Nitric Acid Production ...................................................................................... 45

3.6.17 Petrochemical Production ................................................................................. 46

3.6.18 Petroleum Refineries......................................................................................... 48

3.6.19 Phosphoric Acid Production.............................................................................. 50

3.6.20 Pulp and Paper Manufacturing.......................................................................... 51

3.6.21 Silicon Carbide Manufacturing ......................................................................... 52

3.6.22 Soda Ash Production......................................................................................... 54

3.6.23 Titanium Dioxide Production............................................................................ 55

3.6.24 Zinc Production ................................................................................................. 56

3.7 Energy Sector................................................................................................................... 57

3.7.1 Oil and Gas Systems ........................................................................................... 57
iii

3.7.2 Underground Coal Mining .................................................................................. 58

3.8 Waste Sector .................................................................................................................... 61

3.8.1 Landfills .............................................................................................................. 61

3.8.2 Municipal Solid Waste Combustors.................................................................... 63

3.9 Agriculture (Stationary Fuel Combustion) ...................................................................... 64

3.10 Commercial Stationary Fuel Combustion...................................................................... 66

3.11 Residential Buildings..................................................................................................... 69

3.11.1 Single-Family Homes........................................................................................ 70

3.11.2 Multi-Family Residential Buildings.................................................................. 71

References..................................................................................................................................... 76

Appendix A................................................................................................................................... 81

Appendix B................................................................................................................................... 82
4

Technical Support Document for Permit Thresholds for Greenhouse Gases

1. Purpose

The purpose of this document is to provide the background information that was used to 

support EPA's decision process on evaluating and selecting greenhouse gas (GHG) major source 

applicability thresholds for Prevention of Significant Deterioration (PSD) and Title V permitting 

for EPA’s final rule “Prevention of Significant Deterioration and Title V Greenhouse Gas 

Tailoring Rule”. The document describes the analysis used to estimate the number of existing 

and new facilities (e.g., industrial plant or commercial building) that would exceed different 

GHG emission threshold levels. The document also summarizes the results of this analysis for 

each sector. The results of this analysis served as one of the fundamental bases for evaluating 

administrative burdens at both existing permitting thresholds and for evaluating and selecting 

proposed alternative permitting thresholds to address administrative necessity concerns.

2. Overview

In order to support EPA's assessment of the administrative burden created by adding 

GHGs to existing Prevention of Significant Deterioration (PSD) and Title V permitting 

programs, it was necessary to develop information on the number of affected facilities at both the 

current permitting major source thresholds (generally, 100 tons per year for Title V and 100 or 

250 tons per year for PSD depending on the source category classification) and at alternative 

higher thresholds. An affected facility would be one who's annual emissions of the GHG equal 

or exceed the major source threshold being evaluated.

Eight threshold levels ranging from 100 to 100,000 tons per year of GHG emissions were 

evaluated. Some of the alternative thresholds evaluated are the same as ones (e.g., 25,000 tons 

per year CO2-equivalents) considered in previous studies and in support of EPA's proposed and 

final GHG mandatory reporting rules (GHG MRR, 74 FR 68, pp. 16447 – 16731 and 74 FR 209, 

pp. 56260-56519, respectively). One key difference between the emissions data developed for 

this analysis and the emissions data developed to support the proposed GHG MRR is that this 

analysis is based on a facility's "potential to emit" (PTE) while the proposed GHG reporting rule 

was based on "actual" emissions (i.e., the emissions a facility actually emits in a given year). 

PTE is defined as the maximum capacity of a stationary source to emit a pollutant under its 

physical and operational design, including certain legal limitations, for example, on emissions or 

hours of operation. NSR and Title V programs both use PTE for defining major sources. The 

end result is generally that more facilities will exceed a given threshold on a PTE basis than on 

an actual basis. This is an important differentiation in terms of both evaluating the thresholds 

under this rule and when comparing the results to other threshold analysis, such as the supporting 

data for the EPA's GHG MRR.
5

Although the primary focus of this analysis was on the potential administrative burden 

associated with different GHG permitting emission levels as represented in terms of number of 

facilities potentially subject to permitting, information on GHG emissions from affected facilities 

was also collected to assess the relative coverage of national stationary source GHG emissions at 

the different threshold levels. While the environmental impact associated with the different 

GHG permitting levels was not used as the basis for the GHG applicability thresholds identified 

in the final GHG tailoring rule, the information on national emissions coverage provides a useful 

measure to consider the potential scope of the proposed alternative thresholds, their coverage of 

key GHG emission source categories, and whether they promote the environmental purposes of 

the PSD and Title V programs.

3. Emissions-based Threshold Analysis

3.1 General Description of Overall Approach

This section presents a general description of the overall approach EPA used to evaluate a 

range of permitting thresholds in terms of the number of sources affected, and amount of 

emissions covered.

EPA made use of earlier analyses performed to develop emission thresholds for the 

proposed and final GHG MRR, or used the same data sources when additional analyses were 

required. EPA did not conduct primary research for this analysis, but instead relied on published 

research and publicly available government data, such as EPA's eGRID database of electric 

generating source emissions, Economic and Housing Census data, and Energy Information 

Agency (EIA) data on energy consumption.

3.1.1 Threshold Levels

EPA evaluated eight different GHG emission thresholds:

GHG Thresholds

(tons per year)

100

250

1,000

5,000

10,000

25,000

50,000

100,000

The first two thresholds are the current Clean Air Act major source criteria pollutant 

thresholds for the federal operating permit program under Title V (generally, 100 tpy for major 
6

source applicability), and the PSD construction permit program under Title I. Under PSD, a 

"major stationary source" is any source belonging to a specified list of 28 source categories 

which emits or has a PTE of 100 tpy or more, or any other source type which emits or has the 

potential to emit such pollutants in amounts equal to or greater than 250 tpy. 

The six additional thresholds cover the range of thresholds evaluated for the proposed 

GHG MRR, and add two additional thresholds at 5,000 and 50,000 tons per year. Like the Clean 

Air Act, the permit thresholds are based on U.S. short tons (tons) instead of metric tons (mtons).

There is a three-orders-of-magnitude range in the thresholds which reflects the much 

higher quantity of GHG emissions compared to criteria pollutant emissions from the primary

source of GHG emissions, fossil fuel combustion. For example, an uncontrolled natural gasfired boiler that emits 100 tons of NOx annually would at the same time emit about 100,000 tons 

of CO2.

The threshold analysis of source counts and emissions was done on a "potential to emit" 

basis, because that is the basis that is relevant for the permitting requirements under PSD and 

title V. Potential emissions (in short tons) from each source were evaluated against the threshold 

levels in order to determine whether or not a source would be included in the threshold count. 

When a source was identified as being covered by a given threshold level, the actual emissions 

from that source were included to determine the emissions covered by the threshold. In other 

words, where summary tables present "Tg GHG Emissions Covered per Year" these are the 

actual emissions that would be covered by the threshold level, given the source count arrived at 

considering potential to emit emission levels.

3.1.2 Greenhouse Gases

EPA evaluated emissions of the major GHGs that are directly emitted by human activities

at the eight threshold levels. The GHGs evaluated are shown below in Table 1. For purposes of 

this analysis emissions were evaluated on both an individual GHG mass basis and CO2-

equivalent basis (CO2e). CO2e normalizes the different heat trapping capacities of the different 

GHGs to that of CO2. A quantity of a GHG is converted to a CO2e basis by multiplying the mass

of the compound emitted by its Global Warming Potential (GWP). The GWP is a metric that 

incorporates both the heat-trapping ability and atmospheric lifetime of each GHG relative to 

CO2. 
7

Table 1

Major GHGs Directly Emitted by Human Activities

Greenhouse Gas

Chemical Formula 

or Acronym

Global Warming 

Potential (GWP)*

Carbon dioxide CO2 1

Methane CH4 21

Nitrous oxide N2O 310

Perfluorocarbons PFCs Varies by compound

Hydrofluorocarbons HFCs Varies by compound

Sulfur hexafluoride SF6 23,900

* GWP values as codified in the EPA’s final GHG mandatory

reporting rule: Table A-1 to Subpart A of Part 98 – Global 

Warming Potentials, FR, Vol.74, No. 209, p. 56395. 

Sector descriptions contained in this document include a discussion of GHGs evaluated 

for each sector. If the analysis included more than one GHG, the description includes gasspecific counts as well as a CO2e count. The threshold analyses for stationary fossil fuel 

combustion were simplified by excluding CH4 and N2O emissions, because CO2 comprises over 

99 percent of GHG emissions from fossil fuel combustion.

3.1.3 Source Sectors

In this analysis EPA evaluated the same range of stationary source types with direct GHG 

emissions as identified in the proposed and final GHG MRR. The proposed GHG MRR source 

categories were based on a comprehensive review of all U.S. source categories with GHG 

emissions, to include the categories that emit the most significant amount of GHG emissions. 

The stationary sources evaluated in this analysis can be grouped in the sectors shown below:

● Electricity Generation (facilities with fossil fuel-fired electric generating units);

● Industry (range of industries with process and combustion GHG emissions);

● Energy (oil and gas extraction, transport, and processing; underground coal mining);

● Waste Treatment (landfills and municipal solid waste incinerators);

● Agriculture (stationary fuel combustion);

● Commercial (stationary fuel combustion); and

● Residential (stationary fuel combustion).
8

A number of direct emission source types included in the GHG MRR analysis were not 

included in the potential to emit analysis because the GHG emissions from these sources were 

primarily fugitive emissions. Fugitive emissions are emissions which are not released, or could 

not be reasonably released, through a stack or vent. Under the PSD rules, fugitive emissions are 

only included in potential to emit estimates if the source is one of 28 listed PSD source 

categories. Excluded fugitive emissions sources are listed below:

● Electrical equipment SF6 emissions;

● Wastewater treatment plants not associated with one of 28 listed PSD source categories

(combustion is captured in the commercial sector analysis); and

● Agricultural manure management.

3.1.4 Potential to Emit Methodology

As noted earlier, the potential to emit (PTE) is the amount of emissions that can be 

emitted from a source operating at full capacity. The annual PTE is based on operation at full 

equipment capacity, 24 hours per day, 365 days per year (8,760 hours per year). For example, if 

a boiler has a maximum rated heat input capacity of ten million Btu per hour, the annual PTE for 

that boiler is the amount of emissions from burning 87,600 million Btu of fuel:

10 mmBtu/hr x 8,760 hrs/yr = 87,600 mmBtu/yr

Capacity information and annual GHG emissions were available for some of the source 

categories from analyses performed to support the GHG MRR. In some cases the supporting 

analyses had already calculated GHG emissions on a full capacity basis, in which case EPA

directly used those estimates as PTE estimates. Alternatively, some data from the supporting 

analysis estimated actual annual emissions using a baseline year. If capacity and baseline year 

production information was provided in the supporting data, EPA adjusted the source actual 

emissions estimate by the ratio of annual capacity to baseline production to estimate PTE. If 

capacity information was not available, EPA used capacity factors from other data sources to 

adjust actual emission estimates to PTE estimates. These capacity factors add varying 

uncertainty to the PTE estimate. Detailed descriptions of the different PTE calculation 

methodologies are included in the source descriptions in the following section.

Removal by pollution control equipment was considered in the PTE estimates, though 

control equipment removal was relevant in only a few cases (thermal oxidation of HPCs and 

CH4). Also, as noted earlier, fugitive emissions, were only included in the PTE estimates if the 

source was one of the 28 listed PSD source categories. For example, fugitive CH4 emissions 

from oil and gas transmission stations were not included in CH4 or CO2e emissions when 

comparing to the different thresholds, but were included for iron and steel plants.
9

3.1.5 New Construction

The source population data from the analyses supporting the GHG MRR, and other data 

sources provide information on existing sources and their emissions. The PSD and title V 

program requirements and applicability determinations, however, also apply to newly

constructed sources.

The general approach for estimating the annual number of newly constructed sources was 

to apply growth rates in the number of units or facilities in a source category to the number of 

existing facilities at the different thresholds. Growth rates were available from a variety of 

sources including Economic Census data, EIA energy survey data, and various EPA regulatory

impact analyses and information collection requests which require source population estimates. 

In some cases there was sufficient information to distribute new sources to different thresholds 

based on emission information specific to the new sources (electric generating, municipal solid 

waste combustors, and commercial stationary fuel combustion). Otherwise EPA assumed the 

same size and threshold distribution for new units as for existing units. For example, if the 

annual growth rate in a category was one percent, the number of existing facilities above a 

threshold were multiplied by the fractional growth rate to estimate the number of new facilities at 

that threshold per year.

EPA did not develop estimates for modifications to exsiting sources (which can be 

potentially subject to PSD requirements) as part of this threshold study; estimates for 

modifications were prepared under a separate burden analysis prepared for the final GHG 

tailoring rule and located in the final docket for the rulemaking13.

3.2 Threshold Summary Results

The resulting counts of affected stationary source facilities and the amount of actual 

GHG emissions covered at different PTE thresholds for all sectors are shown in the tables below. 

GHG emissions covered at each threshold are in Tg, which is equivalent to million metric tons. 

SI units were used for the covered emissions to be consistent with the EPA’s official U.S. GHG 

Inventory so that comparions could be made to the inventory in terms of emissions coverage at 

different applicability thresholds. The complete data for the sectors and subsectors are provided 

in supporting spreadsheets that accompany this report. These spreadsheets are identified in 

Appendices A and B.

 

13 See “Summary of Methodology and Data Used to Estimate Burden Relief and Evaluate Resource Requirements at

Alternative Greenhouse Gas (GHG) Permitting Thresholds” contained in the public docket for the final tailoring 

rule at EPA-HQ-OAR-2009-0517.
10

Table 2

CO2e Threshold Summary -- All Stationary Source Sectors

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered

(Tg per year)

100 6,118,252 67,469 3,867

250 1,079,483 19,755 3,786

1,000 302,863 4,430 3,723

5,000 59,140 549 3,622

10,000 30,341 313 3,564

25,000 16,564 140 3,493

50,000 9,980 96 3,387

100,000 5,326 72 3,267

Table 3

CO2 Threshold Summary -- All Stationary Source Sectors

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2 Emissions 

Covered

(Tg per year)

100 6,113,861 67,469 3,651

250 1,075,078 19,755 3,570

1,000 298,527 4,430 3,513

5,000 55,313 549 3,413

10,000 26,836 313 3,357

25,000 13,637 139 3,293

50,000 8,109 96 3,212

100,000 4,226 72 3,114
11

Table 4

CH4 Threshold Summary -- All Stationary Source Sectors

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CH4 Emissions 

Covered 

(Tg per year)

100 4,201 0 7.807

250 3,851 0 7.759

1,000 2,887 0 7.321

5,000 1,042 0 4.740

10,000 466 0 3.697

25,000 138 0 2.234

50,000 34 0 1.185

100,000 3 0 0.211

Table 5

N2O Threshold Summary -- All Stationary Source Sectors

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

N2O Emissions 

Covered 

(Tg per year)

100 47 0 0.074

250 46 0 0.074

1,000 31 0 0.068

5,000 5 0 0.022

10,000 0 0 0

25,000 0 0 0

50,000 0 0 0

100,000 0 0 0
12

Table 6

High GWP Gases Threshold Summary -- All Stationary Source Sectors

GHG

GHG 

Threshold*

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

GHG Emissions 

Covered

(Tg per year)

HFC 100 3 0 0.001

HFC 250 3 0 0.001

HFC 1,000 1 0 0.001

HFC 5,000 and above 0 0 0

PFC 100 and above 0 0 0

SF6 100 and above 0 0 0

* Where a threshold is not listed for a particular GHG, threshold counts for that threshold and any higher 

thresholds can be assumed to be zero.

3.3 Electricity Generating Sector

Data Sources

The latest version of EPA's eGRID database (2006) was used to estimate the PTE of 

electricity generating facilities and counts of units above the different emission thresholds. The 

eGRID database includes year 2004 characteristics, operating information, and annual emissions 

(including CO2) for U.S. facilities that have a generation capacity greater than one MW, and sell 

electric power to the grid. 

A facility's PTE was estimated based on the eGRID generator table. The generator table, 

which is based on the 2004 EIA form 860 database, provides prime mover, generator nameplate 

capacity, and primary energy source (fuel type) for each generator down to 0.1 MW. To 

calculate PTE, we combined the nameplate capacity and primary fuel for each of the fossil-fired 

units with average fuel based prime mover heat rates (Btu/kWh) published by EIA (EIA, 2007).
13

Table 7

EGU Prime Mover Heat Rates

(EIA Electric Power Annual, Table A7, 2007)

Prime Mover Fuel Average Heat Rate (Btu/kWh)

Steam turbine

Coal 10,114

Gas 10,466

Oil 10,400

Simple 

combustion turbine

Gas 11,459

Oil 13,216

Combined cycle 

combustion turbine

Gas 7,445

Oil 11,015

Internal 

combustion engine

Gas 9,923

Oil 10,149

The eGRID database includes cogeneration plants and generating units at industrial 

plants that primarily supply electric power and steam to a host facility. We eliminated these 

units from the electric generation facility population based on North American Industry

Classification System (NAICS) code, so that the only facilities included were facilities with a 

NAICS code beginning with 22 (Utilities).

The generator-nameplate-heat-rate approach potentially underestimates PTE for 

cogeneration plants, where a portion of the burner heat input provides useful thermal energy in 

addition to electric output. This potential to underestimate PTE affects 321 of 2,237 or 14 

percent of facilities evaluated.

Methodology for Existing Facilities

Fuel combustion was the only source of GHG emissions considered for the electricity

generation sector. From the eGRID and EIA information EPA calculated a maximum annual 

fuel heat input based on 8,760 hours of operation for the combustors associated with the 

generator. This calculated maximum annual heat input was used with fuel combustion emission 

factors from the GHG MRR for the primary fuel, to calculate the facility PTE. The calculations 

covered 10,487 fossil fuel-fired generators with nameplate capacities down to 0.1 MW or 

100,000 kW.

EPA also did not evaluate fugitive CH4 emissions from facility coal piles. Fossil fuelfired steam electric plants with heat input greater than 250 mmBtu/hr heat input are one of the 28 

listed PSD source categories that include fugitive emissions when calculating PTE. However, 

the CO2 PTE from combustion alone for this size facility is about 225,000 tons per year. This is 
14

well over all of the emission thresholds considered in this analysis without consideration of the 

contribution of fugitive CH4.

New Units

The eGRID generator table includes an online year field. To determine the number of 

new units per year at different thresholds EPA counted generators online each year and totaled 

the emissions associated with those generators at the facility level over the 15-year period from 

1990 through 2004. Counts were made of the number of these facilities over the different PTE 

thresholds, and averaged over the 15 years to arrive at the number of new or modified facilities 

per year. 

Threshold Summary

The table below shows the facilities and emissions covered at the different emission 

thresholds based on the described methodology. There were a total of 2,237 facilities in the 

electric generation population, so all facilities and all emissions are covered up to the 5,000 ton 

PTE threshold. Almost all emissions (99.9 percent), and about 75 percent of facilities are 

covered at the highest 100,000 ton PTE threshold.

Table 8

CO2 Threshold Summary Results -- Electricity Generating Sector

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2Emissions 

Covered 

(Tg per year)

100 2,237 93 2,373

250 2,237 93 2,373

1,000 2,237 93 2,373

5,000 2,237 91 2,373

10,000 2,195 86 2,373

25,000 2,076 73 2,373

50,000 1,911 64 2,373

100,000 1,721 60 2,371

3.4 Industrial Sector

The industrial sector comprises establishments engaged in the mechanical, physical, or 

chemical transformation of materials, substances, or components into new products, and 

specifically includes businesses classified in Sectors 31 – 33 according to the North American 
15

Industry Classification System (NAICS). Industrial source greenhouse gases result from 

manufacturing processes as well as combustion processes. Because there is a great deal of 

variability within the sector, this technical support document includes industry-specific 

discussions after a general sector overview.

For the industrial sector, EPA considered the six individual greenhouse gases separately, 

and also prepared an analysis considering CO2e. In preparation of the GHG MRR, EPA 

identified 23 industrial sectors where the GHG emissions were significant; these sectors are 

listed in Table 9.
16

Table 9

Industrial Sectors and GHG Emissions

NAICS Code Industrial Sector CO2 CH4 N2O SF6 HFC PFC

325199 Adipic Acid Production X X

331312 Aluminum Production X X

325311 Ammonia Production X

327310 Cement Production X

334 Electronics Manufacturing X X X X

325193 Ethanol Production X

331112 Ferroalloy Production X X

3116 Food Processing X

327 Glass Production X

325120 HCFC-22 Production X X

Hydrogen Production X

331111 Iron and Steel Production X X

3314 Lead Production X

327410 Lime Manufacturing X

3314 Magnesium Production X X

325311 Nitric Acid Production X X

3251 Petrochemical Production X X

324110 Petroleum Refineries X X

325312 Phosphoric Acid Production X

3221 Pulp and Paper Manufacturing X

327910 Silicon Carbide Production X X

325181 Soda Ash Manufacturing X

325188 Titanium Dioxide Production X

3314 Zinc Production X

In addition, there are a large number of industrial establishments across all industrial 

sectors that emit less significant amounts of GHGs (primarily CO2) from stationary source fuel 

combustion. Combustion emissions from these establishments were analyzed under the 

Unspecified Industrial Stationary Combustion source category. 
17

3.4.1 Data Sources

There were several primary data sources used in preparation of the permit threshold 

analysis. EPA consulted analyses prepared in support of the GHG MRR for the 23 industrial 

sectors for which combustion, process and fugitive emissions were significant. These documents 

can be found in the docket numbered EPA-HQ-OAR-2008-0508. The TSDs contain industryspecific analyses of process, fugitive, and combustion emissions for industries. Supporting 

analyses used to prepare the TSDs are found in entries 0046.7 and 0046.8 of the GHG MRR

docket. These emissions estimate details were helpful in breaking down TSD emission estimates 

to compare facility-specific emissions against the additional threshold levels considered in the 

permit threshold analysis, including 100, 250, 5,000, and 50,000 tons per year.

Combustion emissions analyses for the Unspecified Industrial Stationary Combustion

sectors used data from the 2002 Manufacturing Energy Combustion Survey (MECS) and the 

U.S. Census Bureau's 2002 Economic Census. MECS is a survey of manufacturing and 

industrial energy uses and costs prepared by the EIA (EIA, 2007). Data is collected by 

manufacturing establishment through mailed questionnaires. The 2002 MECS data reflects 

responses accounting for approximately 98 percent of the manufacturing payroll, and reports

separate energy use estimates for 48 NAICS industrial sector groups. The MECS provided 

information on the amount of fuel burned in 2002 by sector on an employment basis. The 2002 

Economic Census data provided information on the number of establishments sorted by threedigit NAICS code and disaggregated into specific size categories based on employment (U.S. 

Census, 2004).

3.4.2 Potential to Emit

As mentioned earlier in this document, permit threshold analyses considered both actual 

emissions and PTE. When capacity information was not available, the analyses applied 

utilization rates from the Industrial Production and Capacity Utilization, Federal Reserve 

Statistical Release G-17 in order to adjust actual emissions to determine PTE emissions. These 

utilization rates are prepared quarterly with annual revisions, and are published on the web

(http://www.federalreserve.gov/releases/g17). The main data source for the industrial production 

and capacity utilization rates is the U.S. Census Bureau's Census of Manufactures. Data 

introduced from other Census Bureau publications include the Census of Services and the 

Services Annual Survey (for publishing) and selected Current Industrial Reports. Additional 

government source data include new annual data on minerals from the U.S. Geological Survey

(USGS) and updated deflators from the Bureau of Economic Analysis (BEA). In addition, the 

annual revisions include monthly production estimates that reflect updated seasonal factors and 

the inclusion of monthly source data that became available (or were revised) after the closing of 

the regular four-month reporting window. 
18

3.4.3 Methodology for New Units

To determine the number of new units per year, EPA compared the number of 

establishments by three-digit NAICS code in 1998 to the number of establishments by three-digit 

NAICS code in 2002, and determined an average annual growth rate for each three-digit NAICS 

code. The growth rates were applied to each threshold count to determine the number of annual 

new establishments per industry per threshold. If the growth rate was determined to be negative, 

EPA assumed that no new establishments would be added; however, establishments were not 

reduced to reflect negative growth rates. EPA also supplemented these growth rates with agency

estimates of expected new sources from various information collection requests (ICR) and 

regulatory impact analyses (RIA) efforts.

3.5 Methodology for Existing Unspecified Industrial Stationary Combustion Source 

Category Emissions

In order to determine establishment counts and emissions totals for the unspecified 

industrial stationary combustion sources, EPA used 2002 Economic Census data showing 

manufacturing employment by NAICS code and Manufacturing Energy Consumption Survey

(MECS) data published by EIA. Calculating greenhouse gas emissions required determining 

energy consumption per employee by industry and applying emission factors specific to the 

consumption profile derived from MECS data.

The Economic Census data (2002) provide a count of establishments by employment 

category, where employment category is defined by number of employees (e.g., 1 – 4, 

5 – 9,...,500 – 999,...,more than 2,500). The MECS energy consumption data provide energy

consumption by industry. Both the employment data and the energy consumption data are

organized according to the NAICS codes. 

As part of this analysis, EPA calculated industry-specific GHG emission factors. The 

factors were calculated by considering actual fuel consumption in 2002, as determined by EIA. 

Actual fuel consumed was multiplied by fuel-specific GHG emission factors to determine GHG

emissions by fuel type by industry. To simplify the analysis, EPA only included CO2 emissions 

and ignored CH4 and N2O in the CO2e calculations. CO2 makes up between 99.3 and 99.7 

percent of estimated CO2e emissions. Emissions for each fuel type were combined to determine 

total emissions for a sector. Total emissions per sector were divided by total energy

consumption per sector to determine a factor to calculate GHG emissions per mmBtu of energy

consumption specific to the industrial sector.

The GHG emission factors were then multiplied by the energy consumption per 

employee in order to determine emissions per employee. Multiplying the result by the average 

number employees per establishment, EPA determined total GHG emissions per establishment. 

The total emissions numbers were used to determine number of establishments and volume of 

emissions that would be caught by each of the permit thresholds under consideration. 
19

As discussed previously, a separate threshold analysis was conducted for 23 industrial 

sectors determined to have significant GHG emissions in the GHG MRR analysis. In order to 

quantify the unspecified industrial stationary combustion source emissions, the combustion 

emissions and establishment counts from 19 of these sectors were subtracted from the total 

industrial MECS analysis. For the remaining four industries, HCFC-22 production, hydrogen 

production, magnesium production, and nitric acid production, EPA could not readily isolate 

combustion emissions. For these industries, their establishment counts were subtracted from the 

unspecified industrial source threshold counts based on process emission threshold evaluations, 

assuming that any facility exceeding a threshold for process-based emissions would exceed the 

threshold regardless of their combustion CO2 emissions.

Potential to Emit

In order to determine potential to emit from the MECS and Economic Census numbers, 

EPA assumed a capacity utilization factor of 50%. There is a wide variety of generally smaller 

manufacturing sources included under this general source category. Based on comments we 

received on the proposed GHG tailoring rule, we are using a 50% capacity utilization rate for this 

final analysis to better reflect what can be deemed reasonable operation under normal conditions 

for facilities in these source categories. Sources may operate their combustion equipment at 

levels above and below this capacity utilization rate, but we believe the 50% utilization rate 

reflects a reasonable average rate across the variety of facilities represented in this category. 

New Units

EPA applied industry-specific growth rates to each sector and summed across sectors in 

order to determine number of new units.

Threshold Summary
20

Table 10

CO2e Threshold Summary -- Unspecified Industrial Stationary Combustion

GHG Threshold

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2eEmissions 

Covered 

(Tg per year)

100 172,142 546 372.307

250 112,659 319 367.636

1,000 64,535 239 357.855

5,000 20,785 83 318.759

10,000 12,215 61 289.198

25,000 5,875 18 245.579

50,000 3,272 12 206.881

100,000 958 2 145.106

3.6 Methodology for Existing Specific Industrial Sectors Considering Combustion, 

Process, and Fugitive Emissions

These analyses were based primarily on the GHG MRR TSDs and the supporting 

analyses, including facility specific emission information. The estimates considered each 

greenhouse gas separately. The GHG MRR TSDs included threshold counts and emissions 

calculations for 1,000, 10,000, 25,000, and 100,000 metric tons per year. Two steps were 

required for permit threshold consideration. First, emissions were recalculated in order to 

conduct the analysis in short tons for comparison to the permit thresholds. Second, the emissions 

were considered against the finer threshold stratification considered in the permit threshold 

analysis.

For the permit threshold analysis, EPA determined that if the GHG MRR analysis 

showed all of the establishments exceeded a threshold, after adjustment for short tons, all of the 

establishments exceeded any lower thresholds. However, where fewer than 100 percent of the 

establishments exceeded a threshold, additional analysis was required to compare emissions to 

the permit thresholds of 100, 250, 5,000, and 50,000 tons per year. EPA used the supporting

summaries for the GHG MRR which included facility-specific consumption, process, and 

fugitive emission reports in order to determine counts and emissions for each of the permit 

thresholds.
21

3.6.1 Adipic Acid Production

There are four Adipic Acid Production plants in the U.S., all of which are estimated to 

exceed the highest 100,000 metric tons per year emission threshold for CO2e on an actual 

emissions basis. Therefore all plants will also exceed all PTE thresholds on a CO2e basis. The 

CO2e emission estimate includes N2O process emissions that total about 5.9 million metric tons 

CO2e, and 3.4 million metric tons of CO2 from stationary fuel combustion sources. 

N2O

Individual plant production and emission estimates were not made available because of 

confidential business information (CBI) claims. However, from the Technical Support 

Document for the Adipic Acid Production Sector: Proposed Rule for Mandatory Reporting of 

Greenhouse Gases (EPA-HQ-OAR-2008-0508-0005), overall U.S. adipic acid production was 

estimated to total approximately one million metric tons in 2006. The smallest U.S. plant only

produced about two percent of the total. This plant, however, is the only plant that is 

uncontrolled. The three larger plants with the bulk of production have control equipment with 

N2O control efficiencies that range from 90 to 99 percent. 

The uncontrolled N2O emission factor is 300 kg N2O/mton adipic acid. Based on the two 

percent production share, this uncontrolled plant emitted about 6,000 metric tons of N2O (no 

GWP adjustment). This leaves about 13,100 metric tons of N2O from the three larger controlled 

plants. Two plants representing about 64 percent of production have control efficiencies in the 

range of 90 to 95 percent, and one plant with about 34 percent of production has control close to 

99 percent (EPA, 2001).

Assuming similar production shares today, the share of national production (which is 

assumed for this analysis to be equivalent to capacity) appears to range from 30 to 35 percent for 

the three plants. Therefore, emissions and PTE for the controlled plants range from to 4,000 

metric tons to 4,700 metric tons of N2O per year.

CO2

The CO2 emissions from fuel combustion can similarly be apportioned to the four plants. 

The smallest plant, with only two percent of national production, is estimated at CO2 emissions 

of 67,500 metric tons, and the next smallest, with 30 percent of national production, is estimated 

at 101,300 metric tons.

Potential to Emit

The PTE for each facility was assumed to be equivalent to the emissions based on the 

apportionment described above.

New Units

EPA assumed that no new plants would be constructed for this sector.
22

Threshold Summary

Table 11

CO2 Threshold Summary -- Adipic Acid Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2 Emissions 

Covered 

(Tg per year)

100 4 0 3.376

250 4 0 3.376

1,000 4 0 3.376

5,000 4 0 3.376

10,000 4 0 3.376

25,000 4 0 3.376

50,000 4 0 3.376

100,000 3 0 3.309

Table 12

N2O Threshold Summary -- Adipic Acid Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

N2O Emissions 

Covered 

(Tg per year)

100 4 0 0.019

250 4 0 0.019

1,000 4 0 0.019

5,000 1 0 0.006

10,000 0 0 0

25,000 0 0 0

50,000 0 0 0

100,000 0 0 0
23

Table 13

CO2e Threshold Summary -- Adipic Acid Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2eEmissions 

Covered 

(Tg per year)

100 4 0 9.298

250 4 0 9.298

1,000 4 0 9.298

5,000 4 0 9.298

10,000 4 0 9.298

25,000 4 0 9.298

50,000 4 0 9.298

100,000 4 0 9.298

3.6.2 Aluminum Production

The primary aluminum production process results in emissions of CO2 and PFCs. The 

reduction of the alumina occurs through electrolysis in a molten bath of natural or synthetic 

cryolite (Na3AlF6). The reduction cells contain a carbon lining that serves as the cathode. 

Carbon is also contained in the anode, which can be a carbon mass of paste, coke briquettes, or 

prebaked carbon blocks from petroleum coke. During reduction, most of the carbon in the anode 

is oxidized and released to the atmosphere as CO2.

Potential to Emit

CO2

The Technical Support Document for Process Emissions from Primary Production of 

Aluminum: Proposed Rule for Mandatory Reporting of Greenhouse Gases (EPA-HQ-OAR2008-0508-0006) apportioned CO2 emission estimates from the U.S. GHG inventory to the 13 

operating smelters based on each smelters share of total capacity. Operating smelter emissions 

were all above 100,000 tons of CO2, so no PTE estimate was required. Capacity information for 

the two idle smelters shows that these smelters are also capable of emitting over 100,000 tons of 

CO2 per year.

PFCs

The reduction cells also emit two PFCs: perfluoromethane (CF4) and perfluoroethane 

(C2F6). The GWPs of the two PFCs are 6,500 and 9,200 respectively. During the smelting 
24

process, when the alumina ore content of the electrolytic bath falls below critical levels required 

for electrolysis, rapid voltage increases occur, which are termed "anode effects." Anode effects 

cause carbon from the anode and fluorine from the dissociated molten cryolite bath to combine, 

and produce fugitive emissions of CF4 and C2F6. 

Anode effects released approximately 2.5 million metric tons of CF4 and C2F6 in 2006 as 

documented in the GHG MRR TSD. CF4 made up at least 85 percent of the combined emissions 

in 2006 (Inventory of U.S. GHG Emissions and Sinks: 1990 – 2007). These emissions on a 

CO2e basis are equivalent to about 410 short tons of combined emissions as PFC. The proposed 

GHG MRR TSD estimated CO2e emissions from primary aluminum smelters at full capacity. 

The largest smelter has 11 percent of U.S. operating capacity. Therefore the largest smelter has a 

PTE of not more than 45 tons of PFC, and no facilities have a PTE greater than 100 tons.

New Units

No new primary aluminum facilities are expected to be built. The growth rate in primary

metals from the Economic Census data is only about 0.4 percent.

Threshold Summary

Threshold summaries are displayed below for CO2 and CO2e. All facilities have a PFC 

PTE less than 100 tons per year on a PFC basis.

Table 14

CO2 Threshold Summary -- Primary Aluminum 

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

GHG Emissions 

Covered 

(Tg per year)

100 15 0 3.800

250 15 0 3.800

1,000 15 0 3.800

5,000 15 0 3.800

10,000 15 0 3.800

25,000 15 0 3.800

50,000 15 0 3.800

100,000 15 0 3.800
25

Table 15

CO2e Threshold Summary -- Primary Aluminum

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

GHG Emissions 

Covered 

(Tg per year)

100 15 0 3.951

250 15 0 3.951

1,000 15 0 3.951

5,000 15 0 3.951

10,000 15 0 3.951

25,000 15 0 3.951

50,000 15 0 3.951

100,000 15 0 3.951

3.6.3 Ammonia Production

EPA reviewed the proposed Supporting Data for Threshold Analysis Subpart E – W,

Greenhouse Gas Mandatory Reporting Rulemaking, March 10, 2009 (EPA-HQ-OAR-2008-

0508-0046.7) to determine actual emissions and calculate the potential to emit for 24 ammonia 

plants in operation. The analysis spreadsheet details CO2 actual emission calculations for each 

plant based on ammonia production and urea production, and CO2, CH4, and N2O emission 

calculations for stationary fuel combustion based on 2006 data. For purposes of permit threshold 

analysis, the CH4 and N2O emissions from combustion were not significant.

Potential to Emit

Capacity information in the spreadsheet is based on the engineering design capacity

adjusted for 340 days per year of effective production capability, using information provided by

the United States Geological Survey (USGS). The PTE estimates were made by multiplying the 

actual emission estimates by the ratio of annual ammonia capacity to annual ammonia 

production adjusted to 365 days a year of operation instead of 340. EPA assumed that ratio also 

held for stationary combustion units at the plant. 

New Units

EPA assumed that no new plants would be constructed for this sector.
26

Threshold Summary

Table 16

CO2e Threshold Summary -- Ammonia Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2eEmissions 

Covered

(Tg per year)

100 24 0 14.543

250 24 0 14.543

1,000 24 0 14.543

5,000 24 0 14.543

10,000 24 0 14.543

25,000 24 0 14.543

50,000 24 0 14.543

100,000 22 0 14.540

3.6.4 Cement Production

Process-related CO2 emissions from cement production are the second largest source of 

industrial CO2 emissions in the United States. Cement production is done in two stages. The 

first stage is clinker production. In clinker production, raw materials (primarily limestone) are 

heated to induce calcination and produce lime. Lime reacts with silica-containing materials and 

iron ore and aluminum to form clinker. During the process, CO2 is generated as a byproduct and 

released to the atmosphere. Also during clinker production, some of the clinker raw materials 

form partially or fully calcinated cement kiln dust instead of forming clinker, resulting in 

additional process-related CO2 emissions. In the second stage of the production process, the 

clinker is ground and mixed with gypsum and other materials to make cement.

Potential to Emit

The Technical Support Document for Process Emissions from Cement: Proposed Rule 

for Mandatory Reporting of Greenhouse Gases (EPA-HQ-OAR-2008-0508-0008) shows 107 

cement facilities in the U.S., 106 of which exceed all permit thresholds for CO2 (according to the 

TSD, the one facility that does not exceed the 100,000 tons per year threshold accounted for over 

90,000 metric tons of CO2e and approximately one-tenth of one percent of the cement industry

emissions in 2006).
27

New Units

Growth for the industrial sector was estimated at 0.4 percent, and as such, no additional 

facilities were included in this analysis.

Threshold Summary

Table 17

CO2e Threshold Summary -- Cement Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2eEmissions 

Covered 

(Tg per year)

100 107 0 86.83

250 107 0 86.83

1,000 107 0 86.83

5,000 107 0 86.83

10,000 107 0 86.83

25,000 107 0 86.83

50,000 107 0 86.83

100,000 106 0 86.74

3.6.5 Electronic Production

The Technical Support Document for Process Emissions from Electronics Manufacture 

(Semiconductors, MEMs, Liquid Crystal Displays, and Photovoltaics) (EPA-HQ-OAR-2008-

0508-0009) examined emissions of high GWP gases for semiconductor and related industry

plants. Emissions from stationary fuel combustion were not included in the source category

analysis, but were instead captured by the unspecified industrial stationary combustion analysis. 

EPA has followed this approach here as well.

Approximately one million metric tons of SF6 as CO2e were emitted from the 

semiconductor industry in 2006 (Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990

– 2007). This is equivalent to 46 short tons of SF6. The semiconductor industry uses multiple 

long-lived fluorinated gases in plasma etching and plasma enhanced chemical vapor deposition 

(PECVD) processes to produce semiconductor products. These include PFCs, which are also 

used as heat transfer fluids. Approximately 3.5 million metric tons of PFCs as CO2e were 

emitted from the semiconductor industry in 2006 (Inventory of U.S. Greenhouse Gas Emissions 

and Sinks: 1990 – 2007).
28

Table 18

Electronic Production PFC Emissions

Semiconductor PFC

2006 CO2e Emissions

(million mtons) PFC GWP

2006 PFC Emissions

(tons)

CF4 1.2 6,500 204

C2F6 2.2 9,200 264

C4F8 0.1 8,700 13

Total 3.5 -- 481

Potential to Emit

The Federal Reserve capacity utilization factor for the electronics industry in 2006 was 

79.8 percent. Based on this capacity utilization factor the PTE of all of the semiconductor plants 

combined is estimated at 56 tons of SF6 and 600 tons of PFC. 

EPA identified 216 facilities in the semiconductor-electronics sector. Of these, the 

largest facility emitted six percent of total semiconductor emissions on a CO2e basis (includes 

non-PFCs), which is a maximum of 30 tons of PFC. On a PTE basis, the largest facility would 

emit 36 tons, based on an assumption that the industry capacity is distributed similarly to 

emissions. Therefore no facility exceeds 100 tons per year on an actual or PTE basis for PFC.

New Units

Growth for the industrial sector was estimated at -1.8 percent, and as such, no additional 

facilities were included in this analysis. 

Threshold Summary

Electronics industry emissions from plant processes only exceed emission thresholds on a 

CO2e basis. Facility stationary fuel combustion emissions are not included in the threshold 

comparisons for the industry.
29

Table 19

CO2e Threshold Summary -- Electronics Production 

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 199 0 5.948

250 191 0 5.947

1,000 159 0 5.934

5,000 109 0 5.819

10,000 88 0 5.701

25,000 65 0 5.399

50,000 54 0 5.100

100,000 22 0 3.417

3.6.6 Ethanol Production

In the proposed GHG MRR, EPA determined that the sources of GHG emissions at 

ethanol production facilities that must be reported under the proposed rule are stationary fuel 

combustion, onsite landfills, and onsite wastewater treatment. For the GHG MRR supporting 

analysis, data were unavailable to estimate facility emissions from these combined sources. 

Instead, data on stationary fuel combustion requirements for different plant capacities were used 

to estimate the minimum number of facilities that would meet each of the examined reporting 

rule facility-level thresholds. CO2 emissions from combustion constitute the majority of the 

GHG emissions from ethanol production and therefore provide an adequate measure for 

determining threshold counts. 
30

Table 20

Ethanol Fuel Combustion CO2e Emissions by Plant Size

(from the Proposed GHG MRR TSD Spreadsheet)

Ethanol Produced 

(wet milling process) 

(million gallons)

Coal Combustion Emissions

(mtons CO2e/year)

Natural Gas Combustion

Emissions

(mtons CO2e/year)

290 1,519,585 853,536

245 1,283,787 721,091

200 1,047,990 588,646

200 1,047,990 588,646

100 523,995 294,323

85 445,396 250,174

40 209,598 117,729

35 183,398 103,013

20 104,799 58,865

2.6 13,624 7,652

Table 21

Proposed Reporting Rule Threshold Analysis Results

Threshold CO2e

(tons per year)

Number of Existing 

Sources -- Actual Basis

Percent of Existing 

National Sources*

1,000 101 72%

10,000 93 66%

25,000 86 61%

100,000 43 31%

* National ethanol production source population was estimated at 140 plants nationwide.

Potential to Emit

The permit threshold PTE analysis relied on this same approach and data. Therefore CH4 

emissions from onsite landfills and wastewater treatment plant digesters were not included in the 

PTE analysis, and we did not estimate emission coverage at each threshold. Also, the analysis 

for the proposed GHG MRR did not evaluate thresholds of 100, 250, 5,000, and 50,000 tons per 

year. EPA assumed that all existing plants would exceed the 100 and 250 ton per year thresholds 
31

based on fuel combustion associated with the wet milling process. For the 5,000 and 50,000 

thresholds, EPA included the number of sources exceeding the next highest threshold. For 

example, the count of sources exceeding the 5,000 tons per year level only includes the sources 

exceeding the 10,000 ton threshold in the Technical Support Document for Ethanol Facilities: 

Proposed Rule for Mandatory Reporting of Greenhouse Gases (EPA-HQ-OAR-2008-0508-

0010). 

New Units

EPA estimates that ten new ethanol production facilities will be built per year. 

Threshold Summary

Table 22

CO2e Threshold Summary -- Ethanol

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Sources Added

per Year

100 140 10

250 140 10

1,000 101 7

5,000 101 7

10,000 93 7

25,000 86 6

50,000 86 6

100,000 43 3

3.6.7 Ferroalloy Production

In evaluating ferroalloy production in the U.S., EPA considered actual production at six 

facilities, as published in the U.S. Inventory of Greenhouse Gas Emissions and Sinks: 1990 –

2007 for 2006, and the capacity to produce at three facilities for which production information 

was not published due to competitive concerns.

Potential to Emit

EPA's PTE calculations consider the Federal Reserve's 2006 monthly industrial capacity 

utilization estimates for the primary metals industry classification which shows utilization at 85.9 
32

percent for 2006. The PTE calculations do not affect the threshold analysis, because all facilities 

emit over 100,000 metric tons of CO2e per year. 

New Units

Applying the growth factor for the industrial sector, 0.4 percent, results in no additional 

facilities for the analysis.

Threshold Summary

Table 23

CO2 Threshold Summary -- Ferroalloy Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2 Emissions 

Covered 

(Tg per year)

100 9 0 1.717

250 9 0 1.717

1,000 9 0 1.717

5,000 9 0 1.717

10,000 9 0 1.717

25,000 9 0 1.717

50,000 9 0 1.717

100,000 9 0 1.717

Table 24

CH4 Threshold Summary -- Ferroalloy Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CH4 Emissions 

Covered 

(Tg per year)

100 3 0 0.0003

250 0 0 0
33

Table 25

CO2e Threshold Summary -- Ferroalloy Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2eEmissions 

Covered 

(Tg per year)

100 9 0 1.726

250 9 0 1.726

1,000 9 0 1.726

5,000 9 0 1.726

10,000 9 0 1.726

25,000 9 0 1.726

50,000 9 0 1.726

100,000 9 0 1.726

3.6.8 Food Processing

Food processing includes meat, poultry and fruit and vegetable processing. Emissions 

derive from combustion and fugitive methane related to wastewater treatment. For purposes of 

this permit threshold analysis, EPA did not consider the fugitive methane from wastewater 

treatment because these are the only greenhouse gas emissions from the source category other 

than combustion, and food processing is not a listed PSD source category. Consequently, 

emissions from this subsector considered in this analysis were limited to combustion emissions 

and were calculated using the MECS approach. 

Potential to Emit

EPA used the Federal Reserve's 2004 capacity utilization factor of 79.3 percent for the 

food industry to calculate PTE emissions. 

New Units

In addition, new establishments were calculated assuming a continuation of the growth 

rate of 1.2 percent, as calculated using the methodology described earlier in this document. 
34

Threshold Summary

Table 26

CO2 Threshold Summary -- Food Processing

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 3946 47 16.848

250 2281 27 16.709

1,000 1499 18 16.379

5,000 1030 12 15.723

10,000 749 9 14.354

25,000 482 6 12.257

50,000 10 0 0.596

100,000 0 0 0

3.6.9 Glass Manufacturing

EPA used the Supporting Data for Threshold Analysis Subpart E – W, Greenhouse Gas 

Mandatory Reporting Rulemaking, March 10, 2009 (EPA-HQ-OAR-2008-0508-0046.7), to 

analyze emissions for permit thresholds from glass manufacturing. Annual fuel combustion and 

glass production are estimated for each plant based on 2004 estimated plant sales and 2002 

MECS energy intensity (energy per sales dollars). The spreadsheet shows CO2 emission 

estimates from industrial processes and stationary fuel combustion, as well as CH4 and N2O 

emission estimates from stationary fuel combustion. 

Potential to Emit

Plant capacities are not available in the spreadsheet. To estimate PTE, EPA divided the 

actual annual emissions by a capacity utilization factor of 0.50 or 50 percent.

New Units

EPA used an estimated annual growth rate of 0.4 percent for the nonmetallic mineral 

product manufacturing sector to determine the number of new units for this analysis. 
35

Threshold Summary

Table 27

CO2e Threshold Summary -- Glass Manufacturing

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2eEmissions 

Covered 

(Tg per year)

100 369 1 4.425

250 364 1 4.425

1,000 222 1 4.341

5,000 201 1 4.302

10,000 175 1 4.162

25,000 104 0 3.277

50,000 21 0 1.208

100,000 3 0 0.366

3.6.10 HCFC-22 Production

Chlorodifluoromethane (HCFC-22) is produced for use in refrigeration and air 

conditioning systems and as a chemical feedstock for manufacturing synthetic polymers. 

Because HCFC-22 depletes stratospheric ozone, its production for non-feedstock uses is 

scheduled to be phased out by 2020 under the U.S. Clean Air Act. Feedstock production, 

however, is permitted to continue indefinitely.

A high global warming potential (GWP) greenhouse gas, trifluoromethane (HFC-23), is 

generated as a byproduct during the manufacture of HCFC-22. Emissions of HFC-23 in 2006 

were estimated to be 13.8 million metric tons on a CO2e basis from three HCFC-22 production 

plants. Estimates were based on the plants operating at capacity. Annual emissions in terms of 

both metric tons CO2e and tons HFC-23 are summarized in Table 30 below.
36

Table 28

HCFC-22 Production HFC-23 Emissions

HCFC-22 Production

2006 CO2e Emissions

(million metric tons) HFC GWP

2006 HFC 

Emissions

(short tons)

HFC-23 13.8 11,700 1,300

Source: Reporting Rule TSD

Potential to Emit

Confidential business information (CBI) claims on production information limited EPA's 

PTE analysis. The Technical Support Document for Emissions of HFC-23 from Production of 

HCFC-22: Proposed Rule for Mandatory Reporting of Greenhouse Gases (EPA-HQ-OAR2008-0508-0015) estimated that all three plants emit over 100,000 metric tons CO2e on a 

capacity basis by a factor of 85 or more, or a minimum of 800 short tons of HFC-23. These 

estimates did not account for HFC-23 capture and destruction at two of the three plants. 

Therefore, actual emissions at two of the plants will be lower, and can be limited through 

permitting. We assumed that all three plants exceed the 100 and 250 ton actual and PTE 

thresholds, and that one plant (uncontrolled) exceeds the 1,000 ton PTE threshold.

Because the TSD did not include estimates of CO2 emissions from fuel combustion, and 

the CBI claims noted above, the PTE analysis does not quantify fuel combustion emissions 

specifically for the three plants. Stationary fuel combustion emissions from the plants were 

instead captured under the analysis for unspecified industrial stationary combustion. 

New Units

U.S. production between 1990 and 2006 increased by 11 percent while emissions 

declined by 62 percent. The declines in emissions from control equipment and process changes 

offset the production increases. Therefore we did not estimate any new facilities or

modifications that would increase facility emissions more than 100 tons per year.
37

Threshold Summary

Table 29

HFC Threshold Summary -- HCFC-22 Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

HFC Emissions 

Covered 

(Tg per year)

100 3 0 0.001

250 3 0 0.001

1,000 1 0 0.001

5,000 0 0 0

Table 30

CO2e Threshold Summary -- HCFC-22 Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 3 0 13.848

250 3 0 13.848

1,000 3 0 13.848

5,000 3 0 13.848

10,000 3 0 13.848

25,000 3 0 13.848

50,000 3 0 13.848

100,000 3 0 13.848

3.6.11 Hydrogen Production

EPA estimated CO2 emissions from merchant hydrogen production using the process and 

combustion ratio of 8.62 tons of CO2 emissions per ton of hydrogen production. About 95 

percent of all hydrogen (not just merchant hydrogen) produced in the U.S. today is made from 

natural gas via steam methane reforming. In steam methane reforming fueled by natural gas 

combustion, the process and combustion emissions go up the same stack from the 

boiler/reformer unit. Because the emissions are predominately process emissions and because 
38

the natural gas combustion products are emitted from the same stack, EPA has treated all the 

emissions as process emissions.

Potential to Emit

EPA developed estimates assuming hydrogen production at capacity level. Therefore, no 

adjustment to the emissions estimates is needed to account for PTE emissions. 

New Units

Based on the industry growth factor of -0.1 percent for chemical manufacturing, EPA 

assumed that no new plants would be constructed.

Threshold Summary

Table 31

CO2 Threshold Summary -- Hydrogen Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 75 0 15.227

250 75 0 15.227

1,000 74 0 15.226

5,000 62 0 15.202

10,000 51 0 15.130

25,000 42 0 15.007

50,000 38 0 14.890

100,000 32 0 14.441

3.6.12 Iron and Steel Production

EPA used the Supporting Data for Threshold Analysis Subpart E – W, Greenhouse Gas 

Mandatory Reporting Rulemaking, March 10, 2009 (EPA-HQ-OAR-2008-0508-0046.7) for the 

proposed GHG MRR threshold analysis to determine process and combustion CO2 and process 

CH4. The iron and steel production source category includes taconite iron ore processing 

facilities, integrated iron and steel making facilities, electric arc furnace (EAF) steelmaking 

facilities that are not located at integrated iron and steel facilities, and coke oven facilities that 
39

are not located at integrated iron and steel facilities. Facility processes and facilities covered in 

the spreadsheet are shown in the table below.

Table 32

Iron and Steel Processes, Facilities, and Capacity Information

Iron and Steel Process Number of Facilities Capacity Information

Basic oxygen furnace (BOF) 18 Yes

Blast Furnace (BF) 17 Yes

Sintering 5 Yes

Coke ovens 18 Yes

Electric arc furnace (EAF) 92 No

Taconite furnace 8 Yes

Integrated steel plant fuel combustion* 19 No

Coke oven gas combustion* 9 No

EAF steel plant fuel combustion 92 No

* Six plants had emissions from coke oven gas combustion was included in integrated steel plant fuel 

combustion.

Potential to Emit

The analysis covered 130 plants, and in all cases, except for EAF plants, GHG emissions 

were estimated based on operations at plant capacity. For EAF plants, EPA used the 2007 

Federal Reserve industrial capacity utilization percentage of 86.6 percent for primary metal --

iron and steel production, to adjust estimated actual emissions to PTE. 

The spreadsheet contained emission CO2e estimates which included CO2, CH4, and N2O

emissions. Process CH4 emissions were backed out of the CO2e totals using the process CH4

emissions reported in the U.S. GHG Inventory, and apportioning these emissions to the different 

plants based on their capacity in those processes. N2O emissions are primarily related to fuel 

combustion and were not backed out for separate treatment. 

New Units

No new iron and steel facilities are expected to be built. The growth rate in primary

metals from the Economic Census data is only about 0.4 percent.
40

Threshold Summary

Table 33

CO2 Threshold Summary -- Iron and Steel Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per year

CO2 Emissions 

Covered 

(Tg per year)

100 130 0 85.150

250 130 0 85.150

1,000 130 0 85.150

5,000 129 0 85.148

10,000 128 0 85.141

25,000 123 0 85.057

50,000 116 0 84.831

100,000 113 0 84.655

Table 34

CH4 Threshold Summary -- Iron and Steel Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CH4 Emissions

Covered 

(Tg per year)

100 18 0 0.034

250 17 0 0.033

1,000 17 0 0.033

5,000 3 0 0.011

10,000 0 0 0
41

Table 35

CO2e Threshold Summary -- Iron and Steel Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 130 0 85.151

250 130 0 85.151

1,000 130 0 85.151

5,000 130 0 85.151

10,000 128 0 85.141

25,000 123 0 85.058

50,000 116 0 84.832

100,000 114 0 84.656

3.6.13 Lead Production

According to the 2006 U.S. Geological Survey (USGS), lead production in the U.S.

includes both the primary, direct smelting (one facility) and secondary lead production (16 

facilities). Process emissions of CO2 are a byproduct of the coke consumed during the smelting 

or reforming processes. EPA calculated total process emissions based on lead production as 

reported in the USGS. 

In the Supporting Data for Threshold Analysis Subpart E – W, Greenhouse Gas 

Mandatory Reporting Rulemaking (EPA-HQ-OAR-2008-0508-0046.7), combustion emissions 

are combined with process emissions to determine total actual emissions.

Potential to Emit

In order to determine PTE emissions, EPA considered the Federal Reserve's 2006 

monthly industrial capacity utilization estimates for primary metals industry classification which 

shows utilization at 85.9 percent for 2006, and adjusted to achieve 100 percent utilization. 

New Units

EPA assumed no new facilities would be added for the industry, given an expected 

growth rate of 0.4 percent per year for primary metal manufacturing industry.
42

Threshold Summary

Table 36

CO2e Threshold Summary -- Lead Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 17 0 0.861

250 17 0 0.861

1,000 17 0 0.861

5,000 17 0 0.861

10,000 16 0 0.855

25,000 13 0 0.799

50,000 12 0 0.761

100,000 1 0 0.089

3.6.14 Lime

The Supporting Data for Threshold Analysis Subpart E – W, Greenhouse Gas Mandatory 

Reporting Rulemaking, March 10, 2009 (EPA-HQ-OAR-2008-0508-0046.7) was also used to 

estimate GHG PTE for lime plants. 

Potential to Emit

To estimate PTE, EPA divided annual actual CO2 emissions from the calcining process 

and fuel combustion emissions of CO2, CH4, and N2O by regional capacity factors available in 

the spreadsheet for each plant. The capacity factors ranged from 43 to 136 percent.

New Units

EPA assumed no new facilities would be added for the industry.
43

Threshold Summary

Table 37

CO2 Threshold Summary -- Lime Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2 Emissions 

Covered 

(Tg per year)

100 89 0 27.262

250 89 0 27.262

1,000 89 0 27.262

5,000 89 0 27.262

10,000 89 0 27.262

25,000 86 0 27.237

50,000 66 0 26.533

100,000 60 0 26.180

3.6.15 Magnesium Production and Processing

The magnesium metal production (primary and secondary) and casting industry typically 

uses SF6 as a cover gas to prevent the rapid oxidation and burning of molten magnesium in the 

presence of air. A dilute gaseous mixture of SF6 with dry air and/or CO2 is blown over molten 

magnesium metal to induce and stabilize the formation of a protective crust. A small portion of 

the SF6 reacts with the magnesium to form a thin molecular film of mostly magnesium oxide and 

magnesium fluoride. The amount of SF6 reacting in magnesium production and processing is 

being studied but presently assumed to be negligible, and therefore all SF6 used is assumed to be 

emitted into the atmosphere.

For the proposed GHG MRR Technical Support Document for Process Emissions from 

Magnesium Production and Processing: Proposed Rule for Mandatory Reporting of 

Greenhouse Gases, EPA reported that national annual SF6 emissions from magnesium 

production and processing totaled approximately 3.2 million metric tons CO2e in 2006. The 

facility population totaled 13 facilities that emitted 3.0 million metric tons CO2e. The SF6

emissions (no GWP adjustment) were 148 and 138 short tons respectively. Ten magnesium die 

casting facilities accounted for 29 percent (44 tons), and primary and secondary production

accounted for 64 percent (96 tons) of the total emissions. Other small casting activities 

accounted for the remaining 7 percent (ten tons). 
44

Potential to Emit

EPA used the analysis in the TSD for the proposed GHG MRR, where EPA had 

evaluated thresholds of 1,000, 10,000, 25,000, and 100,000 metric tons per year. Facility-level 

information is not made publicly available because of confidential business information (CBI) 

claims. From that earlier analysis EPA estimated that the same number of facilities exceeded the 

100, 250, and 1,000 tons CO2e per year PTE threshold as determined in the GHG MRR TSD for 

the 1,000 metric tons per year threshold. In a similar fashion, EPA used the GHG MRR TSD 

facility counts at 10,000 metric tons CO2e per year to estimate facilities at the 5,000 tons per year 

PTE threshold, and 100,000 metric tons per year for the 50,000 tons CO2e per year PTE 

threshold. The permit threshold analysis did not include CO2 emissions from fuel combustion. 

That information was not available in the TSD for the proposed GHG MRR. 

On an SF6 mass basis, the average emissions per facility are only 11 tons of SF6, well 

below 100 tons per year. Therefore we assumed that none of the facilities have a potential to 

emit more than 100 tons per year of SF6.

New Units

EPA assumed no new units would be added for the sector.

Threshold Summary

Table 38

CO2e Threshold Summary -- Magnesium Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 13 0 2.955

250 13 0 2.955

1,000 13 0 2.955

5,000 11 0 2.94

10,000 11 0 2.94

25,000 11 0 2.94

50,000 9 0 2.781

100,000 9 0 2.781
45

3.6.16 Nitric Acid Production

EPA used the 2006 nameplate capacity (metric tons of HNO3 100 percent acid basis) for 

45 nitric acid plants and 2006 acid production from the GHG MRR TSD supporting spreadsheet 

(EPA-HQ-OAR-2008-0508-0046.7) to determine N2O emissions. 

Potential to Emit

The GHG PTE was calculated by multiplying actual N2O emissions as CO2e by the ratio 

of nameplate capacity to 2006 production. The permit threshold analysis, based on the GHG 

MRR TSD, does not include GHG emissions from co-located stationary combustion units. Also 

the permit threshold analysis does not account for overlap between facilities in the Nitric Acid 

and Ammonia categories, which have both ammonia and nitric acid production processes. 

New Units

EPA assumed no new units would be constructed for this sector.

Threshold Summary

Table 39

N2O Threshold Summary -- Nitric Acid Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

N2O Emissions 

Covered 

(Tg per year)

100 43 0 0.055

250 42 0 0.055

1,000 27 0 0.049

5,000 4 0 0.016

10,000 0 0 0

25,000 0 0 0

50,000 0 0 0

100,000 0 0 0
46

Table 40

CO2e Threshold Summary -- Nitric Acid Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 45 0 17.732

250 45 0 17.732

1,000 45 0 17.732

5,000 45 0 17.732

10,000 45 0 17.732

25,000 44 0 17.724

50,000 43 0 17.706

100,000 42 0 17.667

3.6.17 Petrochemical Production

EPA determined that the portion of the petrochemical production sector most relevant for 

permit threshold analysis includes the manufacture and production of acrylonitrile, carbon black, 

ethylene, ethylene dichloride, ethylene oxide, and methanol, because the IPCC considers 

production of greenhouse gases from these processes significant compared to other 

petrochemical processes. 

Emissions from the manufacturing processes vary significantly and process emissions 

take many forms. Process emissions include direct oxidation of CO2, off-gassing of CH4 and 

CO2, and the direct release of CO2 and CH4 from equipment leaks. Process emissions are the 

primary consideration for acrylonitrile, ethylene, and ethylene oxide processes. In addition, 

some processes require combustion of supplemental fuel. Both process and combustion 

emissions are significant for carbon black and methanol processes. 

Potential to Emit

EPA's analysis assumed petrochemical production at the capacity level. Therefore, no 

adjustment to the emissions estimates is needed to account for PTE. 

New Units

Based on an industry growth factor of -0.1 percent for chemical manufacturing, EPA 

assumed that no new plants would be constructed.
47

Threshold Summary

Table 41

CO2 Threshold Summary -- Petrochemical Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2 Emissions 

Covered 

(Tg per year)

100 98 0 52.081

250 98 0 52.081

1,000 98 0 52.081

5,000 97 0 52.080

10,000 96 0 52.073

25,000 96 0 52.073

50,000 94 0 52.005

100,000 91 0 51.806

Table 42

CH4 Threshold Summary -- Petrochemical Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CH4 Emissions 

Covered 

(Tg per year)

100 55 0 0.130

250 52 0 0.129

1,000 37 0 0.121

5,000 5 0 0.035

10,000 1 0 0.010

25,000 0 0 0

50,000 0 0 0

100,000 0 0 0
48

Table 43

CO2e Threshold Summary -- Petrochemical Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 98 0 54.826

250 98 0 54.826

1,000 98 0 54.826

5,000 97 0 54.825

10,000 96 0 54.818

25,000 96 0 54.818

50,000 94 0 54.748

100,000 91 0 54.595

3.6.18 Petroleum Refineries

In developing the permit threshold analysis for petroleum refineries, EPA quantified CH4

process emissions from wastewater, fugitive, flares, and storage tanks. Process CO2 emissions 

derived from flares, hydrogen plant emissions, and sulfur plant emissions. In addition, on-site 

combustion emissions were calculated considering fuel consumed by type. 

Potential to Emit

EPA assumed that petroleum refineries were operating at capacity level. Therefore, no 

adjustment to the emissions estimates was needed to account for PTE. 

New Units

According to the ICR prepared for the New Source Performance Standard (NSPS), EPA 

expects that no new refineries will be built over the next few years.
49

Threshold Summary

Table 44

CO2 Threshold Summary -- Petroleum Refineries

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2 Emissions 

Covered 

(Tg per year)

100 150 0 202.947

250 150 0 202.947

1,000 150 0 202.947

5,000 150 0 202.947

10,000 149 0 202.938

25,000 146 0 202.887

50,000 137 0 202.575

100,000 129 0 202.065

Table 45

CH4 Threshold Summary -- Petroleum Refineries

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CH4 Emissions 

Covered 

(Tg per year)

100 129 0 0.083

250 109 0 0.080

1,000 31 0 0.042

5,000 0 0 0
50

Table 46

CO2e Threshold Summary -- Petroleum Refineries

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 150 0 204.897

250 150 0 204.897

1,000 150 0 204.897

5,000 150 0 204.897

10,000 149 0 204.888

25,000 146 0 204.835

50,000 137 0 204.513

100,000 129 0 203.988

3.6.19 Phosphoric Acid Production

Phosphoric acid is produced by combining sulfuric acid and phosphate rock. CO2 is 

emitted when the limestone component of phosphate rock reacts with the sulfuric acid. 

Potential to Emit

When these process emissions are combined with combustion emissions, all 14 plants 

have emissions that exceed the highest threshold level; consequently, no PTE analysis was 

required.

New Units

Based on an industry growth factor of -0.1 percent for chemical manufacturing, EPA 

assumed that no new plants would be constructed.
51

Threshold Summary

Table 47

CO2 Threshold Summary -- Phosphoric Acid Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 14 0 3.838

250 14 0 3.838

1,000 14 0 3.838

5,000 14 0 3.838

10,000 14 0 3.838

25,000 14 0 3.838

50,000 14 0 3.838

100,000 14 0 3.838

3.6.20 Pulp and Paper Manufacturing

Permit threshold analysis for this sector is focused on the energy intensive, fugitive 

emitting pulp, paper, and paperboard manufacturing subsectors. Process emissions include CO2

which is emitted in the recovery cycle at kraft and soda facilities associated with the chemical 

pulp process. The CO2 emitted from kraft mill lime kilns originates from two sources: (1) fossil

fuels burned in the kiln; and (2) conversion of calcium carbonate (or "lime mud") generated in 

the recovery process to calcium oxide.

The bulk of the emissions considered derive from combustion. Many boilers use biomass 

fuel, and the burning of spent pulping liquors to produce steam for facility processes is 

considered biomass combustion for the GHG MRR. The emissions numbers considered for the 

permit threshold analysis are non-biogenic (net of any biogenic emissions). Considering only

non-biogenic emissions, 96.5 percent of the facilities and 99.7 percent of the emissions are 

captured by all of the thresholds proposed for consideration of the permit threshold rule. 

Potential to Emit

Because 99.7 percent of emissions were captured at even the highest threshold, no 

additional PTE estimate was calculated in this analysis.
52

New Units

Based on an industry growth factor of -2.5 percent for paper manufacturing, and previous 

EPA analysis for the pulp and paper NSPS ICR, EPA assumed that no new plants would be 

constructed.

Threshold Summary

Table 48

CO2e Threshold Summary -- Pulp and Paper Manufacturing

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 425 0 57.700

250 425 0 57.700

1,000 425 0 57.700

5,000 425 0 57.700

10,000 425 0 57.700

25,000 425 0 57.700

50,000 422 0 57.688

100,000 410 0 57.527

3.6.21 Silicon Carbide Manufacturing

In 2006, one facility produced silicon carbide in the U.S. Silicon carbide is primarily an 

industrial abrasive manufactured from silica sand or quartz and petroleum coke. Approximately

35 percent of the carbon from the petroleum coke is retained with the silicon carbide, and the rest 

is emitted as both CO2 and CH4. In addition, emissions from combustion account for 

approximately ten percent of total emissions. 

Potential to Emit

Emissions from this plant exceed all permit threshold levels; as a result, EPA did not 

consider PTE calculations. 

New Units

EPA assumed there would be no new facilities constructed.
53

Threshold Summary

Table 49

CO2 Threshold Summary -- Silicon Carbide Manufacturing

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2 Emissions 

Covered 

(Tg per year)

100 1 0 0.101

250 1 0 0.101

1,000 1 0 0.101

5,000 1 0 0.101

10,000 1 0 0.101

25,000 1 0 0.101

50,000 1 0 0.101

100,000 1 0 0.101

Table 50

CH4 Threshold Summary -- Silicon Carbide Manufacturing

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CH4 Emissions 

Covered 

(Tg per year)

100 1 0 0.0004

250 1 0 0.0004

1,000 0 0 0
54

Table 51

CO2e Threshold Summary -- Silicon Carbide Manufacturing

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 1 0 0.109

250 1 0 0.109

1,000 1 0 0.109

5,000 1 0 0.109

10,000 1 0 0.109

25,000 1 0 0.109

50,000 1 0 0.109

100,000 1 0 0.109

3.6.22 Soda Ash Production

Soda Ash production emissions were nearly evenly split between process and combustion 

emissions. Process emissions result from calcining trona ore to produce soda ash. 

Potential to Emit

PTE emissions were calculated based on the capacities of the production units. 

New Units

In 2006, there was a glut of soda ash in the domestic market; EPA assumed no new units 

would be constructed.
55

Threshold Summary

Table 52

CO2e Threshold Summary -- Soda Ash Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 5 0 3.121

250 5 0 3.121

1,000 5 0 3.121

5,000 5 0 3.121

10,000 5 0 3.121

25,000 5 0 3.121

50,000 5 0 3.121

100,000 5 0 3.121

3.6.23 Titanium Dioxide Production

EPA used USGS as the source for production capacity for the eight facilities that 

produced titanium dioxide in 2006.

Potential to Emit

Emissions were assumed to represent PTE operating levels. 

New Units

EPA assumed that no new plants would be constructed. 
56

Threshold Summary

Table 53

CO2e Threshold Summary -- Titanium Dioxide Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 8 0 3.686

250 8 0 3.686

1,000 8 0 3.686

5,000 8 0 3.686

10,000 8 0 3.686

25,000 8 0 3.686

50,000 8 0 3.686

100,000 7 0 3.628

3.6.24 Zinc Production

The Zinc production emissions and facility count estimates include process and 

combustion emissions associated with primary smelting and secondary recycling facilities. 

Potential to Emit

For PTE estimates, EPA considered the Federal Reserve's 2006 monthly industrial 

capacity utilization estimates for primary metals industry classification which shows utilization 

at 85.9 percent for 2006, and adjusted to achieve 100 percent utilization. 

New Units

EPA assumed that no new units would be constructed. 
57

Threshold Summary

Table 54

CO2e Threshold Summary -- Zinc Production

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 9 0 0.852

250 9 0 0.852

1,000 9 0 0.852

5,000 9 0 0.852

10,000 8 0 0.843

25,000 5 0 0.802

50,000 5 0 0.802

100,000 5 0 0.802

3.7 Energy Sector

3.7.1 Oil and Gas Systems

In consideration of the permit thresholds, EPA considered the Fugitive Emissions 

Reporting from the Petroleum and Natural Gas Industry: Background Technical Support 

Document (EPA-HQ-OAR-2008-0508-0023). This document details combustion emissions and 

fugitive emissions from offshore petroleum and natural gas facilities, onshore natural gas 

processors, onshore natural gas transmission, underground natural gas storage, and liquid natural 

gas storage. EPA determined that oil and gas exploration, development, transmission, and 

distribution are not listed PSD source categories, and therefore fugitive emissions from these 

activities were not considered for PSD applicability as it relates to major source thresholds. 

EPA's analysis focused on combustion emissions from these sources.

Potential to Emit

EPA used a capacity utilization figure of 50 percent to determine PTE emission estimates 

and counts. This rate is meant to reasonably represent an average utilization rate across a variety 

of combustion equipment types used in the oil and gas industry subsectors described above.

New Units
58

EPA determined new units based on a growth factor of 1.0 percent for the sector. 

Threshold Summary

Table 55

CO2e Threshold Summary -- Oil and Gas Systems

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 4762 48 88.264

250 4762 48 88.264

1,000 4762 48 88.264

5,000 3722 37 86.192

10,000 3095 31 83.619

25,000 2496 25 79.386

50,000 1045 10 56.949

100,000 387 4 32.750

3.7.2 Underground Coal Mining

GHG emissions from underground coal mining include CH4 fugitive emissions released 

from the coal seam and surrounding rock during mining and post-mining activities (coal bed 

CH4), and fuel combustion emissions of CO2, CH4, and N2O. Fugitive CH4, emissions are 

captured and vented by ventilation systems and degassing systems. Captured and vented CH4

emissions from active mines were considered in the PTE analysis. Because underground coal 

mining is not one of the 28 PSD source categories for which fugitive emissions were required to 

be included in the emissions determination, fugitive emissions from post mining operations, 

surface mines, and inactive mines were not included in the permit thresholds analysis. 

The Technical Support Document for Underground Coal Mines: Proposed Rule for 

Mandatory Reporting of Greenhouse Gases (EPA-HQ-OAR-2008-0508-0032) identified 612 

active underground coal mining facilities but analysis of CH4 emissions was limited to 128 

"gassy" mines where CH4 monitoring was already in place (due to existing CH4 emissions above 

Mine Safety and Health Administration (MSHA) threshold levels). The U.S. GHG Inventory

(EPA, 2008) reports that 233 underground coal mines (including 133 gassy mines) ventilated 

CH4 in 2007. Fuel combustion emission estimates for the GHG MRR TSD from all underground 

coal mines, based on U.S. Census energy use data, were found to comprise between one and 
59

three percent of total CO2e emissions, with coal bed CH4 accounting for the bulk of GHG 

emissions.

In addition to the emissions data on the 128 gassy mines contained in the GHG MRR 

TSD, EPA considered combustion emissions from 289 bituminous underground coal mines, 

using U.S. Census data from 2002.

Potential to Emit

CH4

CH4 emission estimates that were developed for the GHG MRR TSD were used for both 

actual emissions and PTE emissions permit threshold analysis. EPA assumed that venting and 

degassing were continuous throughout the year; therefore, actual emission estimates equal PTE

emission estimates. The estimates considered 128 gassy mines, which were assumed to be the 

largest emitters of vented CH4. The smallest mine of this group had annual CH4 emissions of 26 

tons; therefore EPA assumed that the annual CH4 emissions from the 105 vented mines that were 

not included in the TSD analysis were less than 26 tons. 

CO2

CO2 emissions were estimated in the same manner as for other Unspecified Industrial 

Stationary Combustion categories, based on the ICF analysis (ICF, 2007) using the MECS

approach. Emissions were estimated based on Census information including fuel consumption 

per employee and the distribution of establishments by the number of employees. PTE was 

estimated by using a capacity utilization factor of 86.3 percent as published by the Federal 

Reserve.

New Units

The number of underground bituminous coal mines in the U.S. is on the decline. EIA 

data show that only Colorado had an increase in the number of underground coal mines between 

2006 and 2007 (EIA, 2008). The EIA data show that overall the number of underground coal 

mines decreased from 2006 to 2007 by eight percent; consequently, EPA assumed no new 

underground mines would be built. http://www.eia.doe.gov/cneaf/coal/page/acr/table1.html.
60

Threshold Summaries

Threshold summary tables are shown below for CH4 (vented fugitive emissions), CO2 

(fuel combustion), and CO2e (vented fugitive CH4 and combustion CO2).

Table 56

CO2 Threshold Summary -- Underground Coal Mining

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 238 0 0.783

250 202 0 0.778

1,000 63 0 0.692

5,000 30 0 0.577

10,000 30 0 0.577

25,000 0 0 0

Table 57

CH4 Threshold Summary -- Underground Coal Mining

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 110 0 1.586

250 110 0 1.586

1,000 110 0 1.586

5,000 53 0 1.420

10,000 38 0 1.361

25,000 24 0 1.147

50,000 13 0 0.784

100,000 1 0 0.105
61

Table 58

CO2e Threshold Summary -- Underground Coal Mining

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2e Emissions 

Covered 

(Tg per year)

100 238 0 39.520

250 238 0 39.520

1,000 126 0 33.945

5,000 124 0 33.943

10,000 123 0 33.936

25,000 103 0 33.606

50,000 78 0 32.800

100,000 55 0 31.241

3.8 Waste Sector

3.8.1 Landfills

The landfill PTE analysis includes both municipal solid waste (MSW) landfills and onsite 

industrial landfills associated with pulp and paper and food processing. The analysis used a 

modification of the landfill emission modeling approach used for the proposed GHG MRR 

threshold analysis. Like the GHG MRR analysis, the permit threshold PTE analysis did not 

include onsite industrial landfills for ethanol processing facilities or industrial land application 

systems. 

GHG Emissions

Decomposition of waste in landfills generates CH4 and CO2. The amount of CH4

generated from a given landfill is a function of several factors: the total amount of waste 

disposed in the landfill; the characteristics of the waste; and the climatic conditions. The amount 

of CH4 emitted is the amount of CH4 generated minus the amount of CH4 oxidized by aerobic 

microorganisms in the landfill cover material. Also subtracted from the total is the amount of 

CH4 that is destroyed by combustion of the vented gas. The CO2 produced by decaying waste is

not considered an anthropogenic emission, and is not counted in GHG emission totals. Likewise, 

CO2 resulting from the combustion of landfill CH4 is not accounted for as an anthropogenic 

emission under international accounting guidance.
62

According to the 2008 U.S. Inventory, MSW landfills emitted 111.2 million metric tons 

CH4 (CO2e basis) in 2006. The majority of the CH4 emissions from on-site industrial landfills 

occurs at pulp and paper facilities and food processing facilities. In 2006, these landfills emitted 

14.6 million metric tons CO2e

Potential to Emit

The methodology used for the proposed GHG MRR threshold analysis was also used to 

estimate CH4 generation rates and emissions in 2006 for the PTE analysis. A landfill-specific 

model developed by EPA to support its proposed GHG MRR was used to estimate CH4

generation and potential generation from municipal landfills. The generation estimate was 

adjusted with assumptions on oxidation in landfill cover, and destruction by combustion for 

energy recovery or flaring. The industrial landfill generation and emission estimates are based 

on the U.S. GHG Inventory. Industrial landfills were assumed not to have energy recovery or 

flaring, so there was no difference between generation and emissions.

New Units

EPA did not estimate the number of new facilities added each year with CH4 emissions 

above the different thresholds due to the time delay between landfill construction and emission 

generation. 

Threshold Summary

Table 59

CO2e Threshold Summary -- Landfills

GHG Threshold 

(tons per year)

Number of 

Existing Sources

CO2e Emissions 

Covered 

(Tg per year)

100 4,131 125.621

250 4,117 125.619

1,000 4,053 125.592

5,000 3,564 124.552

10,000 3,265 122.788

25,000 2,701 115.937

50,000 1,684 92.340

100,000 967 72.722
63

Table 60

CH4 Threshold Summary -- Landfills

GHG Threshold 

(tons per year)

Number of 

Existing Sources

CH4 Emissions 

Covered 

(Tg per year)

100 3,885 5.973

250 3,562 5.931

1,000 2,692 5.539

5,000 981 3.274

10,000 427 2.326

25,000 114 1.087

50,000 21 0.401

100,000 2 0.106

3.8.2 Municipal Solid Waste Combustors

The threshold analysis for the proposed GHG MRR included municipal solid waste 

combustors (MWC) in the general stationary fuel combustion category. The analysis used the 

eGRID database, which is discussed in the PTE methodology description for electric generating 

units. 

Data and Methodology

EPA used the latest version of the eGRID database (2006) to estimate the PTE of MWC 

facilities and counts of facilities above the different emission thresholds. The eGRID database 

includes year 2004 characteristics, operating information, and annual CO2 emissions for U.S. 

facilities that have a generation capacity greater than one MW and sell electric power to the grid. 

By using eGRID, EPA assumed that all MWC facilities sell power to the grid.

Potential to Emit

EPA identified 75 MWC facilities based on the generator primary fuel in the generator 

table (primary fuel equals MSW) in the eGRID database. The eGRID database contains CO2

annual emissions estimates for the facilities. For CO2 emissions, eGRID uses a standard 

assumption that 70 percent of the heat value of the waste stream comes from renewable materials 

and 30 percent comes from nonrenewable materials. The renewable fraction has a CO2 emission 

rate of zero; therefore, the PTE threshold analysis is based on the nonrenewable or fossil fraction 

assumption. EPA estimated PTE by dividing the annual emissions from eGRID by the eGRID 

plant capacity factor.
64

New Units

To determine the number of new per year at different thresholds, EPA counted the 

number of generators online each year, and totaled the nameplate capacity for each online year. 

This information was compared to the total facility nameplate capacity, and the PTE for the 

increased capacity was calculated by multiplying the facility PTE by the fraction of nameplate 

capacity associated with the new generators. EPA counted the facilities that exceeded the PTE 

thresholds during each period, and computed a 15-year average to determine the number of new 

or modified facilities per year. 

Threshold Summary

Table 61

CO2 Threshold Summary -- Municipal Solid Waste Combustors -

GHG Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added

per Year

CO2 Emissions 

Covered 

(Tg per year)

100 75 2 6.255

250 75 2 6.255

1,000 75 2 6.255

5,000 75 2 6.255

10,000 75 2 6.255

25,000 74 2 6.24

50,000 67 1 6.071

100,000 40 1 4.958

3.9 Agriculture (Stationary Fuel Combustion)

The analysis for the Agriculture sector was limited to stationary fuel combustion CO2

emissions from internal combustion diesel engine generators. Fugitive emissions of CH4 from 

enteric fermentation, and CO2, CH4, and N2O from manure management were not included 

because farms and related operations are not in the 28 PSD source categories that require 

quantification of fugitive emission PTE for determining major source status, and because of the 

large uncertainties and lack of information on determining what component of the noncombustion emissions at agricultural operations would be defined as non-fugitive for PSD 

purposes. Fuel combustion for building space heating and other farm purposes were not 

included in the estimates, but would be a component of farm PTE. 
65

Data and Methodology

EPA used the 2007 ICF analysis to estimate the number of farms covered by the different 

thresholds (ICF, 2007). Emissions from diesel generators on farms were estimated using data on 

the average generator size in Delaware (EEA, 2004), and data on energy use on farms for nontransport/non-machinery motors (Brown and Neal 2005). Using these data, EPA estimated the 

number of diesel generators on farms and apportioned the generators across farm sizes, assuming 

no farm has more than one generator. 

Potential to Emit

EPA assumed that a high proportion of farms would run the generators infrequently, and 

a smaller proportion would have a generator as the only power source, requiring nearly constant 

operation. EPA used this distribution to determine actual and potential emissions, with PTE 

emissions based on the assumption that the generators ran 24 hours per day, 365 days per year.

EPA recognizes that this approach underestimates the PTE for all farm stationary fuel 

combustion sources, because it is limited to diesel engine generators used primarily to run pumps 

and motors, and does not include additional sources such as fuel combustion for drying and 

curing, space heating, and water heating. 

New Units

New generator installations were estimated based on information in the Regulatory

Impact Analysis (RIA) for the spark ignition stationary combustion engine NSPS and area 

NESHAPS (EPA, 2007). The on-farm engine population of diesel generators used for irrigation 

increased four percent between 1998 and 2003, or about 0.8 percent annually. 
66

Threshold Summary

Table 62

CO2 Threshold Summary -- Farm Stationary IC Engines

CO2 Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Engines Added 

per Year

CO2 Emissions 

Covered 

(Tg per year)

100 37,351 299 0.512

250 37,351 299 0.512

1,000 0 0 0

5,000 0 0 0

10,000 0 0 0

25,000 0 0 0

50,000 0 0 0

100,000 0 0 0

3.10 Commercial Stationary Fuel Combustion

Data Source

EPA used EIA's Commercial Building Energy Consumption Survey (CBECS) to estimate 

commercial sector stationary fuel combustion GHG emissions and PTE. CBECS is a national 

sample survey that collects information on the stock of U.S. commercial buildings, their energyrelated building characteristics, and their energy consumption and expenditures. Commercial 

buildings include all buildings in which at least half of the floor space is used for a purpose that 

is not residential, industrial, or agricultural; thus, the source category includes building types that 

might not traditionally be considered "commercial," such as schools, correctional institutions, 

and buildings used for religious worship. The CBECS survey is conducted every four years and 

the most recent survey was completed for 2003.

The CBECS survey sample was designed so that survey responses could be used to 

estimate characteristics of the entire nationwide commercial building stock. The 2003 survey

selected 6,955 potential case buildings for sampling. The sampling procedures resulted in 5,215 

completed building interviews for a response rate of 82 percent. To make national estimates 

from the sample data, EIA calculated base sampling weights for each building (the reciprocal of 

the probability of that building being selected into the sample). In other words, the base 

sampling weight is the number of national buildings represented by the sampled building. The 

base weight was further adjusted to account for nonresponsive bias. 
67

EIA publishes summary tables from the survey, and posts "microdata" files on the EIA 

website. The CBECS microdata consist of the 5,215 sampled building records, which each 

correspond to a single sampled building. For each building, these files contain information such 

as the building size, climatic region, census region, year constructed, types of energy used, and 

energy consumption and expenditures. These individual building microdata records are also the 

basis for the summary tables published by EIA. 

Emissions Methodology

EPA used the CBECS microdata to estimate commercial building emissions and 

populations above emission thresholds. Each of the 5,215 microdata records corresponds to a 

single sampled building. EIA has made available 20 different data files of the microdata records 

which contain a wide range of information on characteristics and energy use for each building.

EPA's analysis relied on guidance provided by EIA on how to use the data. As noted 

above, the CBECS sample was designed so that survey responses could be used to estimate 

characteristics of the entire commercial building stock nationwide. The table below provides 

examples from EIA on how to calculate national commercial building characteristics from the 

sample building data.

Table 63

EIA Website Examples

To Find the National 

Estimate for: Do This...

And You

Should Get...

Total number of buildings Sum ADJWT8 (weight factor) 4,858,749.82 

(or 4,859 thousand) 

Total number of office 

buildings

Sum ADJWT8 for cases where PBA8 (building code) = "02" 823,805.47 

(or 824 thousand) 

Total floor space Create a new variable (weighted square footage) by 

multiplying ADJWT8 by SQFT8 (floor space) for each case, 

then sum this new variable

71,657,900,522 

(or 71,658 million ft2) 

Total floor space in 

buildings with air 

conditioning

Sum the new weighted square footage variable (see above) 

for cases where COOL8 (air conditioning) = "1"

63,559,999,624 

(or 63,560 million ft2) 

Total electricity 

consumption in KWh 

Create a new variable (weighted electricity consumption) by 

multiplying ADJWT8 by ELCNS8 (electricity consumption) 

for each case, then sum this new variable

1,043,175,710,751 

(or 1,043 billion kWh)

Source: http://www.eia.doe.gov/emeu/cbecs/cbecs2003/public_use_2003/cbecs_pudata2003.html.

EIA calculated base sampling weights for each surveyed building (these are the 

reciprocal of the probability of that building being selected into the sample). Therefore, a 

building with a base weight of 1,000 represents itself and 999 similar but unsampled buildings in 
68

the total building stock. The base weight is further adjusted to account for non-response bias. 

The variable "ADJWT8" in the data file is the final weight. The ADJWT8 weight factor is used 

as described in Table 63 to extrapolate the survey sample to a national scale for any value. In 

order to obtain a national value each sample building's value must be multiplied by the building's 

weight (ADJWT8). All of the weighted values are then summed. 

2003 CO2 Emissions

EPA calculated the CO2 emissions for each of the 5,215 buildings based on the annual 

natural gas and oil consumption reported for the building. For national emission estimates and 

counts of buildings with annual CO2 emissions over any threshold, EPA multiplied the base 

weights by the sample emission totals to determine the national estimate of buildings with 

emissions over the threshold.

Potential to Emit

EPA estimates that commercial buildings operate at 15 percent of capacity. EPA 

considered several sources in making the PTE factor determination: 

● A report prepared by Energy and Environmental Analysis, Inc. for Oak Ridge National 

Laboratory describing the industrial and commercial boiler population in the United 

States (EEA, 2005). The report estimated an average commercial boiler capacity factor

of 16 percent.

● Reports on cooking equipment energy use by the Food Service Technology Center in 

California suggesting that the cooking equipment in food service establishments operate 

at about ten percent of a theoretical maximum capacity based on 8,760 hours per year 

(Pechan, et.al, 2008).

● A study of Los Angeles dry cleaners performed by the Pollution Prevention Education 

and Research Center (PPERC) in 2004 which demonstrates that dry cleaners operate 

boilers at about 10 to 15 percent of maximum capacity over a normal year (Pechan, et al., 

2008).

New Buildings

The CBECS data identifies the year the sampled buildings were constructed. We used 

the construction year information to identify the number of new buildings built each year in the 

1990 to 2003 period. Counts of the average number of these buildings built per year were then 

made at the different emissions and PTE thresholds.

Threshold Summary

The count of buildings and emissions at the threshold levels for the entire sector are 

shown in the table below. Threshold results by commercial building categories (e.g., offices, 

public assembly, schools) are provided in Appendix B. 
69

Table 64

CO2 Threshold Summary -- Commercial Sector Stationary Fuel Combustion

CO2 Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2 Emissions 

Covered 

(Tg per year)

100 1,355,921 22,123 119.262

250 731,477 12,041 105.306

1,000 172,654 2,922 69.885

5,000 18,167 196 29.384

10,000 5,660 96 17.765

25,000 1,161 7 8.790

50,000 600 3 6.003

100,000 51 2 1.012

3.11 Residential Buildings 

Data Sources

EPA used residential fuel consumption data from EIA's Residential Energy Consumption 

Survey, and multi-family building and unit data from U.S. Census (Census) surveys to estimate 

CO2 emissions and PTE for fuel combustion at single and multi-family residential properties. 

The RECS is a national area-probability sample survey that collects energy-related data for 

occupied primary housing units. The most recent 2005 survey collected data from 4,382 

households in housing units statistically selected to represent the 111.1 million housing units in 

the United States. RECS data are tabulated for the four Census regions, the nine Census 

divisions, and for the four most populous States -- California, Florida, New York, and Texas.

The RECS sample was designed so that survey responses could be used to estimate 

characteristics of the national stock of occupied housing units. In order to arrive at national 

estimates from the RECS sample, EPA calculated base sampling weights for each housing unit

as the reciprocal of the probability of that building being selected into the sample. Therefore, a 

housing unit with a base weight of 10,000 represents itself and 9,999 similar, but not sampled 

housing units in the total stock of occupied residential housing units. The base weight is further 

adjusted to account for non-response bias. Ratio adjustments were also used to ensure that the 

RECS weights add up to Census Current Population Survey estimates of the number of 

households.

The RECS data are provided at the housing unit level, and not at the building level. EPA 

used additional data from the Census on multi-family building population characteristics to 

estimate total property emissions and PTE for multi-unit properties. Census data were from two 
70

sources: the Property Owner and Manager Survey (POMS, 1996) and the American Housing 

Survey (AHS, 2005).

3.11.1 Single-Family Homes

The RECS data was used directly to estimate CO2 emissions from fossil fuel combustion 

at single-family housing units for space heating, water heating, and appliances. EPA assumed 

that each unit in an attached single-family building was a separate source, with combustion 

equipment under different ownership. 

The annual energy consumption by fuel (1,000 Btus) for the surveyed unit was multiplied 

by the fuel CO2 emission factor to estimate annual emissions. Total single-family unit emissions 

for the entire country were calculated by multiplying CO2 emissions for each units by the base 

sampling weight. 

Potential to Emit

The PTE for a single-family unit was calculated by dividing the CO2 emissions from the 

unit by a capacity factor of 0.1. This factor was estimated by comparing the average annual CO2

emissions per heated floor space area per hour by climate zone, to required heat input capacity. 

The required heat input capacity was based on rule of thumb heating system requirements for the 

different climate zones. The table below shows the average Btu/ft

2

-hour from the RECS data 

and Heating Requirement (Btu/ft

2

) by climate zone. A heating system efficiency of 80 percent

was used to estimate the required space heating capacity. 

Table 65

Single-Family Detached and Attached

Households with Fossil Fuel-Fired Space Heating

(from RECS, 2005)

Households

(millions)

Climate

Zone(s)

Heating Degree 

Day Range

Average Annual Fuel 

Consumption

(Btu/ft

2

-hour)

Space Heating 

Requirement* 

(Btu/ft

2

)

6.8 5 > 7,000 4.8 50 – 60

16.7 4 5,500 – 7,000 5.4 45 – 50

17.0 3 4,000 – 5,499 4.6 40 – 45

18.9 1 and 2 < 4,000 3.8 Zone 2: 35 – 40

Zone 1: 30 – 35

* Heating requirement ranges are from www.acdirect.com/systemsize.php.
71

3.11.2 Multi-Family Residential Buildings

Emission Rates

As noted earlier in the Data Source section, the RECS data are on an individual unit 

basis, not building or property basis, so a different approach was required for multi-family units 

where EPA assumed common ownership of the property fuel combustion equipment. In order to 

estimate property emissions and the number of properties above different emission and PTE 

thresholds, EPA combined the RECS data with data from the POMS and AHS.

From the RECS data, EPA first calculated average residential unit CO2 emissions for the 

two most common fuels (natural gas and oil) by multi-family category. These are shown in the 

table below. 

Table 66

Multi-Family Residential Unit -- Average Annual CO2 Emissions

(from RECS, 2005)

Multi-Family Category

(number of units)

Natural Gas Space Heating

(tons CO2/residential unit-year)

Fuel Oil Space Heating

(tons CO2/residential unit-year)

2 to 4 units 4.8 8.3

5 or more units 3.0 8.9

EPA also obtained annual CO2 emission rates from an EPA analysis that was based on 

Lawrence Berkeley National Lab (LBNL) modeling studies. Those rates were estimated for old 

and new building units (see Table 67). The pre-1980 building estimate compares with the 

overall average from the RECS data. The post-1980 building estimates are much lower, 

particularly for units burning fuel oil.

Table 67

Multi-Family Residential Unit -- Average Annual CO2 Emissions

(from 2008 EPA Analysis based on LBNL, 1997)

Multi-Family Category

(building age)

Gas Serviced Units

(tons CO2/residential unit-year)

Fuel Oil Serviced Units

(tons CO2/residential unit-year)

Pre-1980 building 4.75 7.17

Post-1980 building 2.65 3.87
72

Existing Property Characteristics

Information on the distribution of multi-family properties by number of units per property 

was taken from the 1995 – 1996 POMS. The data are aggregated by different housing unit 

ranges. The table below shows the property size distribution from unpublished POMS data 

(NMHC Quick Facts -- Apartment Stocks (http://www.nmhc.org)). The POMS data were for 

privately owned housing only and excluded public housing projects (about 13,500 buildings and 

1,326,000 units). For our estimates, the building numbers were adjusted to current (2005) levels 

based on the RECS unit data (unit ratio of RECS to POMS). EPA assumed the same unit 

distribution in the adjustment. 

Table 68

Multi-Family Residential Property Size Distribution

(from National Multi-Housing Council tabulation of unpublished POMS data 1995 – 1996)

Number of Rental 

Units on Property

Number of Properties 

(1995 – 1996)

Number of Units 

(1995 – 1996)

Average Number 

of Units per 

Property

2 1,558,700 3,093,200 2

3 336,030 1,025,900 3

4 341,350 1,436,800 4

5 – 9 281,500 1,897,700 7

10 – 14 70,390 862,280 12

15 – 19 36,780 602,260 16

20 – 29 38,000 916,750 24

30 – 39 18,166 604,240 33

40 – 49 14,431 702,790 49

50 – 99 26,694 2,009,400 75

100 – 199 19,804 2,952,300 149

200 – 299 7,775 1,948,400 251

300 – 399 2,966 1,058,800 357

400 – 499 1,307 605,130 463

500 – 749 723 431,360 597

Over 750 307 437,670 1,426

Total 2,754,923 20,584,980
73

The adjusted POMS size distribution and average number of units in each category were 

combined with information from RECS on the percentage of units that use gas or oil for space 

heating. The gas and oil emission factors from the previous tables were applied to the average 

number of units in each property size category by fuel to estimate property annual CO2

emissions. 

For our final estimates we used the LBNL based emission factors for post-1980 

buildings, over the RECS based factor. We found that these lower emission factors resulted in 

total emissions more in line with the total based on all RECS units and residential sector 

estimates in the U.S. Greenhouse Gas Inventory. The RECS-based factors combined with the 

POMS property distribution data resulted in a larger overestimate in overall category annual 

emissions. The lack of information on the building population over 50 units, and lack of 

information on the correlation between unit emissions and the building/property size are large 

sources of uncertainty in the estimates at thresholds above 1,000 tons. 

Potential to Emit

PTE was estimated using the same ten percent capacity factor as used for the single 

family residential units

New Properties

The AHS data provided information on new construction used to estimate the number of 

new buildings and new units with natural gas space heating that were constructed in the 1999 –

2005 period. To simplify the analysis, EPA ignored the limited use of fuel oil for space heating 

in new units. 

The AHS data provided separately the number of new buildings with gas space heating 

per year, and a size distribution for all new buildings per year. The AHS size distribution 

stopped at 50 and larger, and was slightly different in other categories from the POMS data. 

EPA adjusted the distribution based on the POMS distribution and then used the same emission 

and capacity factor approach as used for existing units.
74

Table 69

American Housing Survey New Building Data

Building Size: 

Number of Units 

per Building

Number of New 

Buildings per Year

(1999 – 2005)

(thousands)

Fraction of All 

New Buildings 

per Year 

(1999 – 2005)

New Gas Buildings

per Year

(1999 – 2005)

(thousands)

Number of New 

Gas Buildings 

per Year

2 6.3 0.22

16.0

3,468

3 – 4 5.4 0.19 2,995

5 – 9 6.1 0.21 3,389

10 – 19 6.0 0.21 3,310

20 – 29 3.1 0.11 1,734

30 – 49 1.0 0.03 552

50 or more 1.0 0.03 552

Total 29.0 1.00 16.0 16,000
75

Threshold Summary

Table 70

CO2 Threshold Summaries -- Residential Sectors

Threshold 

(tons per year)

Number of 

Existing Sources

Number of New 

Facilities Added 

per Year

CO2 Emissions 

Covered 

(Tg per year)

Multi-Family Residential

100 610,500 11,300 54.285

250 137,000 6,400 42.192

1,000 51,200 1,100 32.399

5,000 7,800 120 14.934

10,000 1,400 20 4.933

25,000 160 3 1.392

50,000 20 0 0.006

100,000 0 0 0

Single-Family Residential

100 3,925,000 33,000 51.408

250 45,350 515 1.670

1,000 0 0 0

Total Residential Sector

100 4,535,500 44,300 105.693

250 182,350 6,915 43.862

1,000 51,200 1,100 32.399

5,000 7,800 120 14.934

100,00 1,400 20 4.933

25,000 160 3 1.392

50,000 20 0 0.006

100,000 0 0 0
76

References

Brown, E., and Elliott, R.N., On-Farm Energy Use Characterizations, Report Number IE052, 

©American Council for an Energy-Efficient Economy, Washington, D.C., March 2005. 

http://www.aceee.org/pubs/ie052full.pdf

E.H. Pechan & Associates, Inc., Perrin Quarles Associates, Inc., and Alpine Geophysics, LLC, 

Greenhouse Gas (GHG) Emissions and New Source Review, Work Assignment No. 1-06, EPA 

Contract No. EP-D-07-097, April 10, 2008 (EPA-HQ-OAR-2008-0318-0080).

Environmental Energy and Analysis, Inc. (EEA), Characterization of the U.S. Industrial 

Commercial Boiler Population, submitted to Oak Ridge National Laboratory, May 2005 

(EPA-HQ-OAR-2008-0318-0005).

http://www1.eere.energy.gov/industry/distributedenergy/pdfs/characterization_industrial_comme

rical_boiler_population.pdf

Energy and Environmental Analysis, Inc. (EEA), World of Distributed Generation in Delaware,

February 2004. 

http://www.eeainc.com/rrdb/DGRegProject/Documents/DEDGWorld.pdf

Federal Register, 74 FR 16447, Mandatory Greenhouse Gas Reporting Regulations; Proposed

Rule, Washington, D.C., April 10, 2009.

Federal Reserve, Statistical Release G17. Industrial Production and Capacity Utilization. 

http://www.federalreserve.gov/releases/g17/About.htm

ICF, International, Memorandum from Chris Steuer, Marian Van Pelt and Robert Lanza 

regarding Methodology Description for Industrial Sector GHG Threshold Analysis, November 2, 

2007 (EPA-HQ-OAR-2008-0318-0079).

Lawrence Berkeley National Laboratory (LBNL). Energy Data Sourcebook for the U.S. 

Residential Sector. Prepared by Energy Analysis Program, Environmental Energy Technologies 

Division, LBNL, University of California, Berkeley, CA, September 1997. 

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77

U.S. Census Bureau (1998), 1995 Property Owners and Managers Survey, 1998. 

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Survey, December 2006.

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U.S. Energy Information Administration (EIA), 2002 Manufacturing Energy Consumption 

Survey, January 2007. 

http://www.eia.doe.gov/emeu/mecs/contents.html

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Sinks: 1990 – 2007, April 2009, US EPA 430-R-09-004. 

http://www.epa.gov/climatechange/emissions/usinventoryreport.html

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X – PP, Greenhouse Gas Mandatory Reporting Rulemaking, March 10, 2009 (EPA-HQ-OAR2008-0508-0046.8).

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Database (eGRID) 2004, May 2007. 

http://www.epa.gov/cleanenergy/energy-resources/egrid/index.html

U.S. Environmental Protection Agency (EPA), Regulatory Impact Analysis for the Stationary 

Spark-Ignition New Source Performance Standard (SI NSPS) and New Area Source NESHAP, 

December 2007, US EPA 452/R-07-015. 

http://www.epa.gov/ttn/atw/nsps/sinsps/sinspspg.html

U.S. Environmental Protection Agency (EPA), Draft U.S. Adipic Acid and Nitric Acid N2O 

Emissions 1990 – 2020: Inventories, Projections and Opportunities for Reductions, November 

2001. 

http://www.epa.gov/nitrousoxide/pdfs/adipic_nitric_n2o.pdf
78

U.S. Environmental Protection Agency (EPA), Climate Change Division, Fugitive Emissions 

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Greenhouse Gases, January 22, 2009 (EPA-HQ-OAR-2008-0508-0005).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for Process Emissions from Primary Production of Aluminum: Proposed Rule for 

Mandatory Reporting of Greenhouse Gases, February 4, 2009 (EPA-HQ-OAR-2008-0508-

0006).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for the Ammonia Production Sector: Proposed Rule for Mandatory Reporting of 

Greenhouse Gases, January 22, 2009 (EPA-HQ-OAR-2008-0508-0007).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for Process Emissions from Cement: Proposed Rule for Mandatory Reporting of 

Greenhouse Gases, January 28, 2009 (EPA-HQ-OAR-2008-0508-0008).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for Process Emissions From Electronics Manufacture (Semiconductors, MEMs, 

Liquid Crystal Displays, and Photovoltaics), January 29, 2009 (EPA-HQ-OAR-2008-0508-

0009).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for Ethanol Facilities: Proposed Rule for Mandatory Reporting of Greenhouse 

Gases, February 4, 2009 (EPA-HQ-OAR-2008-0508-0010).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for the Ferroalloy Production Sector: Proposed Rule for Mandatory Reporting of 

Greenhouse Gases, January 22, 2009 (EPA-HQ-OAR-2008-0508-0011).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for the Glass Manufacturing Sector: Proposed Rule for Mandatory Reporting of 

Greenhouse Gases, January 22, 2009 (EPA-HQ-OAR-2008-0508-0014).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for Emissions of HFC-23 from Production of HCFC-22: Proposed Rule for 

Mandatory Reporting of Greenhouse Gases, February 06, 2009 (EPA-HQ-OAR-2008-0508-

0015). 

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for the Hydrogen Production: Proposed Rule for Mandatory Reporting of 

Greenhouse Gases, August 5, 2008 (EPA-HQ-OAR-2008-0508-0016).
79

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for the Iron and Steel Sector: Proposed Rule for Mandatory Reporting of Greenhouse 

Gases, September 9, 2008 (EPA-HQ-OAR-2008-0508-0017).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for the Lead Production Sector: Proposed Rule for Mandatory Reporting of 

Greenhouse Gases, January 22, 2009 (EPA-HQ-OAR-2008-0508-0018).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for the Lime Manufacturing Sector: Proposed Rule for Mandatory Reporting of 

Greenhouse Gases, January 22, 2009 (EPA-HQ-OAR-2008-0508-0019).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for Process Emissions from Magnesium Production and Processing: Proposed Rule 

for Mandatory Reporting of Greenhouse Gases, February 10, 2009 (EPA-HQ-OAR-2008-0508-

0020).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for the Petrochemical Production Sector: Proposed Rule for Mandatory Reporting of 

Greenhouse Gases, September 9, 2008 (EPA-HQ-OAR-2008-0508-0024).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for the Petroleum Refining Sector: Proposed Rule for Mandatory Reporting of 

Greenhouse Gases, September 9, 2008 (EPA-HQ-OAR-2008-0508-0025).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for the Phosphoric Acid Production Sector: Proposed Rule for Mandatory Reporting 

of Greenhouse Gases, February 20, 2009 (EPA-HQ-OAR-2008-0508-0026).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for the Pulp and Paper Sector: Proposed Rule for Mandatory Reporting of 

Greenhouse Gases, February 11, 2009 (EPA-HQ-OAR-2008-0508-0027).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for the Silicon Carbide Production Sector: Proposed Rule for Mandatory Reporting 

of Greenhouse Gases, January 22, 2009 (EPA-HQ-OAR-2008-0508-0028).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for the Soda Ash Manufacturing Sector: Proposed Rule for Mandatory Reporting of 

Greenhouse Gases, January 22, 2009 (EPA-HQ-OAR-2008-0508-0029).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for the Titanium Dioxide Production Sector: Proposed Rule for Mandatory Reporting 

of Greenhouse Gases, January 22, 2009 (EPA-HQ-OAR-2008-0508-0031).
80

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for Underground Coal Mines: Proposed Rule for Mandatory Reporting of 

Greenhouse Gases, February 4, 2009 (EPA-HQ-OAR-2008-0508-0032).

U.S. Environmental Protection Agency (EPA), Office of Air and Radiation, Technical Support 

Document for the Zinc Production Sector: Proposed Rule for Mandatory Reporting of 

Greenhouse Gases, January 22, 2009 (EPA-HQ-OAR-2008-0508-0033).
81

Appendix A

Sector Permit Threshold Counts and Emissions by GHG

The listed electronic spreadsheet files contain the permit threshold counts and emissions 

for each sector and subsector by GHG. These listed files are included in separate files in the 

docket (EPA-HQ-OAR-2009-0517). Please refer to the following file names for additional 

information on specific sectors and GHGs:

● GHG Data for Final Tailoring Rule Development - CO2e.xls

● GHG Data for Final Tailoring Rule Development - CO2.xls

● GHG Data for Final Tailoring Rule Development - CH4.xls

● GHG Data for Final Tailoring Rule Development - N2O.xls

● GHG Data for Final Tailoring Rule Development - HFC.xls

● GHG Data for Final Tailoring Rule Development - PFC.xls

● GHG Data for Final Tailoring Rule Development - SF6.xls
82

Appendix B

Commercial Building Sector -- Permit Threshold Results by Commercial Category

Please refer to the electronic file "Commercial Building Category CO2 Permit Threshold 

Results.xls." in the docket for EPA-HQ-OAR-2009-0517
1

Attachment C

Summary of Methodology and Data Used to Estimate Burden Relief and 

Evaluate Resource Requirements at Alternative Greenhouse Gas (GHG) 

Permitting Thresholds

March 2010

1. Introduction

This paper summarizes an assessment of the estimated resource requirements for 

permitting authorities to include GHG at several possible major source permitting thresholds and 

the burden reduction and costs savings for permitting authorities and sources as a result of 

requiring the inclusion of GHG in the title V and Prevention of Significant Deterioration (PSD) 

permitting programs at thresholds greater than the current statutory requirements. A preliminary

analysis to support the tailoring rule proposal resulted in an earlier version of this Technical 

Support Document, found at EPA-HA-OAR-2009-0517.14 Based on comments received on the 

proposal and updates to key assumptions, this revised summary presents the updated 

methodology and burden reduction estimates resulting from several permitting threshold 

alternatives considered for the final tailoring rule. The analysis was performed considering GHG 

emissions on a carbon dioxide equivalent (CO2e) basis, which represents the sum of the six 

primary GHG with their respective global warming potentials (GWP) applied. Time and costs 

associated with permit activities are derived from existing Information Collection Requests 

(ICRs) for the title V and PSD programs. Estimates for the number of affected sources used in 

 

14 “Summary of ICR-based Data Used to Estimate Avoided Burden and Evaluate Resource

Requirements at Alternative GHG Permitting Thresholds;” Prepared by EPA Staff; August 2009.
2

this analysis were obtained from the GHG thresholds evaluation, which can be found at EPAHQ-OAR-2009-0517.15

2. Methodology for Estimating Permitting Burden Due to GHG Emission Sources

This section describes the basic methodology we used to estimate the different types and 

quantities of permitting actions that would be affected by addressing GHGs under the PSD and 

title V permitting programs. The final burden results summarized in Section 3 are based on the 

methodologies described in this section. In developing our methodology, we established 

different applicability options under which GHG emission sources would be regulated. These 

GHG applicability thresholds range from the statutory threshold levels (100 and 250 tpy) to

different combinations of major source and significance levels based on GHG emissions, and 

finally, applicability based on GHG-related additions to otherwise occurring permitting actions 

for non-GHGs (also referred to here and in the preamble for this action as the ‘anyway’ source 

approach). We considered several different major source/major modification threshold 

combinations. We chose the combinations to reflect representative, incremental steps along the 

possible range. Because it is time- and resource- intensive to develop estimates for a given step, 

we chose intervals that best reflect representative points within the range given those time and 

resource constraints. For example, as it became evident from the analysis that the 100,000 tpy

CO2e major source threshold would be a viable option under one of the phase-in steps in the 

GHG tailoring rule, we needed to then evaluate different GHG significance level options in 

combination with the 100,000 tpy CO2 major source level to determine the ultimate impact on 

PSD and title V permitting activity.

 

15 “Technical Support Document for Greenhouse Gas Emissions Thresholds Evaluation;” Office of Air Quality 

Policy and Standards; March 29, 2010.
3

PSD Permits 

Table 2-1 summarizes EPA’s estimate of modifications and new construction PSD 

permitting actions potentially affected by the addition of GHG as a regulated air pollutant at 

different GHG threshold options for PSD applicability. These actions are broken down by type 

of modification and new construction activity. Three types of modifications are included in this 

analysis: major modifications at major sources that are triggered by increased conventional 

pollutant emissions, but also exceed the significance level for GHG; modifications previously

considered minor that become major modifications due to GHG emissions occurring at existing 

major sources; and modifications at newly major GHG sources due solely to emissions 

exceeding the significance level threshold for GHG. For new construction, two types of sources 

are listed – those that are major sources due solely to the emissions of GHG, and those which are 

classified as major due to conventional pollutant emissions, but also exceed the GHG 

significance level (or ‘anyway’ sources). 

The first line items in Table 2-1 for modifications and new construction present estimates 

of GHG-related permitting actions that would occur at ‘anyway’ sources ; these are labeled in the 

table as “Current Modifications – Add Additional GHG” and “Newly Constructed Major Sources 

– Add Additional GHG.” The August 2008 ICR for the New Source Review (NSR) program 

estimates that 282 PSD and 519 non-attainment NSR permits are issued annually.

16 EPA’s initial 

burden analysis concentrated solely on the 282 annual PSD actions. If a source is major for a 

pollutant for which an area is designated non-attainment, all significant emissions or significant

emissions increases of pollutants for which the area is in attainment are still subject to 

 

16 Prevention of Significant Deterioration and Non-Attainment Area New Source Review (Renewal), EPA ICR 

Number 123.23, OMB Control Number 2060-0003, 2008. A copy of this document is available in the docket for 

the final Tailoring Rule.
4

Table 2-1. Estimated Number of PSD Permit Actions Exceeding GHG17 Threshold Options

Threshold

100/250 

tpy 

major; 

100/250 

tpy sig. 

level

25,000 

tpy 

major; 

25,000 

tpy sig. 

level

50,000 

tpy 

major; 

50,000 

tpy sig. 

level

100,000 tpy 

major;

50,000 tpy 

sig. level

100,000 tpy 

major; 

75,000 tpy 

sig. level

100,000 tpy 

major; 

100,000 tpy 

sig. level

NonGHG

Current Modifications – Add Additional GHG 448 448 448 448 448 448 448

Minor Modifications Becoming Newly Major 17,894 8,947 1,789 1,789 895 0 0

Modifications at Newly Major Sources 43,942 250 117 20 20 20 0

Modifications Total 62,284 9,645 2,354 2,257 1,363 468 448

Newly Constructed Major Sources - Add Additional GHG 240 240 240 240 240 240 240

Newly Constructed Major Sources 19,649 10 3 2 2 2 0

Newly Constructed Sources Total 19,889 250 243 242 242 242 240

Total 82,173 9,895 2,597 2,499 1,605 710 688

 

17 GHG threshold options are all based on tpy CO2e. The Non-GHG option is based on a PSD action being triggered for a non-GHG, conventional pollutant 

(e.g., nitric oxides), where a GHG-related PSD review is only necessary when associated GHG emissions for the project exceed 75,000 tpy CO2e.
5

PSD review. Thus, some of the facilities applying for nonattainment permits may also undergo 

PSD actions at the same time. Although there is no way of accurately predicting which of the

519 nonattainment actions might also coincide with a PSD action related to GHG emissions, we 

believe it is likely that most will since they typically involve large emission sources; thus, it is 

assumed all nonattainment actions from the ICR annual estimate will also need a PSD permit.

Therefore, in this final analysis, to more accurately depict the number of PSD permitting actions 

occurring annually, it is assumed that all 801 permitting actions above involve a PSD action. We 

estimate that 70% of these permit actions are modifications, or 560 of the 801, based on feedback 

received from the National Association of Clean Air Agencies (which estimated that some 65% 

of these permitting actions involve modifications); other commenters on the proposed tailoring 

rule (who generally said that most permitting actions involve modifications); and EPA program 

staff experience.18 Further, 80% of these modifications are expected to involve combustion 

activities with GHG emission levels exceeding the statutory thresholds and any of the 

significance levels we considered, up to an including the 100,000 tpy CO2e level, thus requiring 

the inclusion of GHG related requirements in a PSD permit.19 This equates to 448 modifications 

annually. We believe that any of the modifications that would be subject to PSD due to the 

conventional emissions would also be large enough to increase GHGs by at least 100,000 tpy of 

CO2e.

 

18 “NACAA Summary on Permitting GHGs Under the Clean Air Act”; Memorandum from Mary Stewart Douglas, 

National Association of Clean Air Agencies to Juan Santiago, EPA/OAQPS, September 3, 2009.

19 The 80% estimate was obtained by reviewing a sample of PSD modification permits to determine the number 

involving combustion that would emit GHGs. This review showed that approximately 80% of PSD permitting 

actions involve combustion units of all types. These permitting actions are being permitted for, or taking limits 

for, NOx or some other combustion-related emission. These run the gamut of industrial activity, from power 

generators to manufacturing facilities, and many other types.
6

The 240 remaining annual permit actions—labeled in Table 2-1 as “Newly Constructed 

Major Source- Add Additional GHG”—are assumed to be construction of new major sources as 

determined by emissions of one or more NAAQS pollutants. Due to the size and emissions of 

sources currently subject to the PSD permitting program, it is believed all of these newly 

constructed major sources will exceed each of the GHG thresholds we considered, including the 

100,000 tpy CO2e, and will also need to include GHG-related requirements in the PSD permit. In 

total, all 688 major permitting actions mentioned above will need to factor in GHG requirements 

as indicated in Table 2-1. For permitting authorities, 50 additional burden hours are estimated to 

include the GHG requirements in a permit.20 For affected sources, approximately 222 additional 

burden hours are needed, based on the two line items in the current NSR ICR we expect to be 

impacted by the addition of GHG – approximately 120 hours to “obtain guidance on data needs” 

and 102 hours for the “preparation of BACT analysis.” That is, the current NSR ICR indicates 

that on average, affected sources spend 222 hours for these two activities for their conventional 

pollutants. We expect that they will need to spend an equal amount of time for these two 

activities for their GHG emissions. The sources will need to “obtain guidance on data needs” 

because they will be analyzing their emissions from GHG units and will need to prepare a 

separate BACT analysis for their GHG emissions, or else expand the BACT analysis they would 

otherwise do for their conventional pollutants to account for their GHG emissions. We believe 

 

20 A well-known gas with a familiar BACT process, such as NOx, requires an average of 20-30 burden hours to be 

included in a permit. As less is known regarding GHGs and the BACT decision process, expert staff judgment 

set the burden for permitting authorities to add GHG to permits at 50 hours. This is because determining BACT 

entails review and analysis of the available control techniques. For a well-known pollutant, the experience of the 

permitting authority allows it to efficiently consider the various options and narrow them down promptly to the 

one that should be considered BACT. Because no BACT determinations have ever been made, permitting 

authorities will need to invest additional time into reviewing the available technologies and selecting which one 

should be considered the best for the particular source. In the absence of any previous experience selecting 

BACT for GHG sources, we estimate that twice as much time will be necessary as for conventional pollutants. 
7

that the remaining activities that the affected sources must undertake would not be appreciably 

lengthened by their need to include GHG emissions. 

According to the NSR ICR, approximately 74,591 minor permitting actions occur 

annually, including the following: 30% involve new minor sources, new synthetic minor sources, 

and synthetic-based modifications; 30% involve true minor modifications; 20% involve nettingbased minor modifications; and 20% involve minor/administrative permit revisions.

21 We believe 

that a number of projects that could have taken limits or netted out of PSD review and thereby

obtain a minor permit will now be required to apply for a major PSD permit, depending on the 

significance threshold set for GHG. These projects are identified in Table 2-1 under “Minor 

Modifications Becoming Newly Major.” Combining the number of synthetic-based 

modifications (7,459) and netting-based modifications (14,909) identified in the ICR, 

approximately 22,368 of these actions could potentially become major modifications subject to 

PSD review if their associated GHG emissions increases exceed the selected GHG significance 

level option. We did not count ‘new minor sources’ and ‘new synthetic minors’ because we have 

already accounted for them as potential major GHG sources if their PTE emissions exceed the 

selected GHG major source threshold option. 

Based on staff review of samples of minor source permits, it is estimated that 80% of the 

current minor modification actions likely involve combustion sources – totaling 17,894 actions 

of the total 22,368 minor modification actions.22 Some of these actions may trigger the 

requirements of the PSD program depending on their GHG emission increases and the selected 

GHG significance threshold. In the absence of any experience involving GHG sources and any 

sufficient quantitative data from commenters, we determined the number of these actions on the 

 

21 See NSR ICR at page 11.

22

 See footnote 6, above (basis for 80% calculation).
8

following basis: We assumed the following percentage of the total 17,984 actions would move 

to a major modification status due to GHG increases for each of the GHG significance level 

options considered in this analysis: 50% at 25,000 tpy CO2e; 10% at 50,000 tpy CO2e; 5% at 

75,000 tpy CO2e; and zero at 100,000 tpy CO2e. To determine these percentages, we considered 

the relative emissions of CO2 emissions to NOx emissions at the current major modification 

significance level threshold for NOx (40 tpy). For example, for an average natural gas 

combustion boiler (a common industrial combustion unit that is part of many modification 

projects), a 40 tpy NOx emissions would coincide with a 56,000 tpy CO2e level. Since many 

combustion related projects keep just under the 40 tpy NOx level to avoid major modification 

status, we assume that the CO2e emissions for a similar project will be around the 50,000 tpy 

CO2e level. Based on the relationship in combustion-related emission levels between NOx and 

CO2e just described, we believe it is reasonable to expect that all these currently minor 

modification projects involving combustion units will exceed the 100 tpy GHG significance level 

under the baseline scenario. This is because we do not believe that the sources at which these 

projects occur will be able to structure their operations so as to limit their GHG emissions to less 

than 100 tpy GHGs. However, at higher GHG significance level options, we assume that a 

decreasing proportion of projects will be significantly large enough, or they may emit GHGs 

close enough to the GHG significance level to be able to limit their operations or net-out for 

GHGs like they can for NOx. In the absence of experience and quantitative information from 

commenters we made the following assumptions regarding how many of these formerly minor 

modification projects would be subject to major PSD review at the different GHG significance 

level options: at the 25,000 tpy CO2e significance level, we estimate that half of the 

modifications will be able to limit their operations to avoid PSD ; at the 50,000 tpy CO2e 
9

significance level, we estimate that 10% of these previously minor now major modifications will 

be covered by PSD; at the 75,000 tpy CO2e significance level we estimate that only 5% of these 

currently minor modification projects move into a major modification status for GHGs; and 

lastly, at the 100,000 tpy CO2e significance level, we assume that none of these projects will be 

large enough by themselves to trigger major PSD review.

In addition to sources becoming subject to PSD requirements because of GHG emissions 

related to modifications, new construction will occur that will require a PSD permit solely due to 

the source’s potential GHG emission levels, identified in Table 2-1 as “Newly Constructed 

Major Sources.” Based on the source data obtained from the GHG thresholds evaluation, these 

newly constructed major sources involve both industrial and commercial/residential facilities.

23

The current NSR ICR notes that permitting authorities spend approximately 300 hours 

processing and issuing a new construction industrial source PSD permit. Sources spend almost 

870 hours on average preparing for the same permit. In the previous burden analysis, 

commercial/residential permits were assumed to require only 20% of the time necessary for an 

industrial permit. While it is still believed that these sources are less complex than their industrial 

counterparts in terms of numbers and types of emissions sources and control requirements, EPA 

now estimates the commercial/residential permits to take 70% of the time required to complete 

an industrial permit, resulting in approximately 210 hours and 866 hours for permitting 

authorities and sources respectively.

24 This is based on comments received, which stated that we 

had significantly underestimated the amount of time needed. These commenters emphasized that 

commercial and residential sources will generally be located in populated areas, and therefore 

 

23 “Technical Support Document for Greenhouse Gas Emissions Thresholds Evaluation;” Office of Air Quality 

Policy and Standards; March 29, 2010.

24 See Tables 2-2 and 2-3.
10

may elicit significant amounts of public input, which in turn will increase the amount of time 

needed compared to our initial estimates. However, the commenters generally did not provide 

quantitative information. As a result, we conducted further evaluation of the additional support 

and outreach activities for permitting authorities to assist with applicability determinations and 

emissions calculations, as virtually all commercial/residential sources will have no experience 

with the PSD permitting process. There are also many permit preparation activities that represent 

a fixed cost, such as preparation of notices and public hearings. Of the sources falling in this 

category, the number requiring PSD permitting will vary depending on where the thresholds for 

triggering PSD review (both major source and modifications thresholds) are established.

Table 2-2. Average Permitting Authority Burden per GHG PSD Permit Type

Activity

Burden 

Hours per 

Permit -

Industrial

Burden Hours 

per Permit -

Commercial/ 

Residentiala

Attend Preapplication Meetings 36 27

Answer Respondent Questions 20 15

Log In and Review Data Submissions 16 12

Request Additional Information 8 6

Analyze for and Provide Confidentiality Protection 24 2

Prepare Completed Applications for Processing 38 29

File and Transmit Copies 8 6

Prepare Preliminary Determination 36 27

Prepare Notices for and Attend Public Hearings 40 30

Application Approval 48 36

Notification of Applicant of PA Determination 8 6

Submittal of Information on BACT/LAER to RBLC 19 14

Total Burden Hours per Permit 301 210

a In general, to process commercial/residential permits, permitting authorities will have to spend 75% of the amount of time 

they spend on industrial permits, except they will have to spend even less time on confidentiality due to the fact that most 

residential sources are not likely to be concerned about confidentiality. Commercial/residential permits will be much 

simpler than industrial permits, but a large part of the permitting costs are fixed costs. For example, organizing and holding 

a hearing for a much simpler permit, compared to a more complex permit, nevertheless take almost as long because of the 

document preparation, travel, and organizational details.
11

Table 2-3. Average Source Burden per GHG PSD Permit Type

Activity

Burden Hours 

per Permit -

Industrial

Burden Hours per 

Permit - Commercial/ 

Residentiala

Preparation and Planning

Determination of Compliance Requirements 170 170

Obtain Guidance on Data Needs 120 120

Preparation of BACT Analysis 102 102

Data Collection and Analysis

Air Quality Modeling 200 40

Determination of Impact on Air Quality 

Related Values 100 30

Post-construction Air Quality Monitoring 50 20

Permit Application

Preparation and Submittal of Permit 

Application 60 60

Public Hearings 24 24

Revisions to Permit 40 40

Total Burden 866 606

a

PSD permit applications for commercial/residential sources will be significantly simpler than industrial source PSD 

permit applications. However, due to their inexperience, we estimate commercial/residential sources will take as long to 

complete their steps for their permit application as it will for industrial sources to complete their steps.

Commercial/residential sources will, on average, have much less work for data collection and analysis. We estimate that 

they will have approximately 25% as much work in these areas (90 hours) compared to industrial sources (350 hours). 

However, commercial/residential sources will have to spend some time on data collection analysis is because some of 

them will have conventional pollutants that they emit in amounts that exceed the “significance” levels, but not the 

“major” levels, and they will have to analyze those conventional pollutants. Our 25% estimate is based, in the absence of 

actual experience or quantitative data from commenters, on our judgment that significantly less than 50% of 

commercial/residential sources emit conventional pollutants in amounts that equal or exceed the significance levels, but 

those that do may have to spend more time than industrial sources on data collection because they are unfamiliar with the 

tasks and therefore will face a learning curve.

Finally, an existing, but newly classified major source for GHG, may undergo a 

modification for which it will then be subject to PSD permitting requirements. This category of 

PSD permitting activity is listed on Table 2-1 as “Modifications at Newly Major Sources.” With 

this new major source status, these facilities must apply for and be issued a PSD permit, if they

undergo a major modification. See Appendix A for a list of newly major sources at different 

major source GHG thresholds. We estimate that 4% of these newly major sources will undergo 

modifications. This rate was obtained by dividing the current 560 annual PSD modification-
12

related permit actions (i.e., 70% of 801 actions identified in the NSR ICR) by the existing major 

source population of 14,700 major source title V permits. This represents our best available 

estimate of the rate of PSD modification activity at major sources, and we make the assumption 

that this rate will also apply for newly major GHG sources. We recognize that there is some 

level of uncertainty in applying this rate to GHG-only sources, particularly for sources in 

unconventional sectors such as commercial and residential categories, however we believe at 

higher GHG threshold levels, where large industrial sources predominate, that this modification 

rate provides a reasonable estimate of modification activity. As no data are yet available for 

commercial/residential sources and because we cannot conclude that they will differ from 

industrial sources, we select the same 4% rate for modification activity.

Title V Permits

Title V programs also complete several types of permitting actions annually, 

including processing and issuing new permits, permit revisions, and permit renewals. 

Newly constructed major sources or sources designated newly major due to a 

modification are required to apply for and be issued a title V permit in order to operate. In 

addition to sources new to title V, permitting authorities must add GHG terms to permits 

for sources exceeding the threshold set for GHG emissions. Permitting authorities may

face burdens to update existing title V permits for GHG under two possible scenarios: (1) 

EPA promulgates or approves any applicable requirements for GHGs that would apply to 

such a source, which would generally require a permit reopening or renewal application, 

or (2) the source makes a change that would result in an applicable requirement for GHG 

to newly apply to the source, such as PSD review, which would generally require an 
13

application for a permit revision. Permitting authorities will also need to process permit 

renewal applications, generally on a five-year cycle, and such renewals would need to 

assure that the permit properly addresses GHG. 

The April 2007 Title V ICR estimates that 50 permits are completed every year for new 

sources.25 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; we estimate the addition of GHGs will add an additional 10% of 

the time currently estimated for a new title V permit. We believe that 10% is the appropriate 

amount because for the most part, these sources will simply need to add information concerning 

inventory, reporting, or monitoring of their GHG emissions, as appropriate, which they can 

readily do. 

The ICR also identifies 3,267 permit renewals conducted on an annual basis. As not all 

sources potentially emit GHG above a determined threshold, this analysis examines the 

estimated 80% involving combustion activities that most likely have the potential to emit GHG 

above the series of potential thresholds evaluated.26 Therefore, approximately 2,614 sources will 

need to address GHG in the new version of the permit.

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 

 

25 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.

26 The 80% estimate was obtained through a review of existing title V permit source categorization. 
14

activity will require 40 hours per permit on average for permitting authorities to complete.27 The 

number of operating permit revisions will vary based on the number of previously minor 

modifications now qualifying as major modifications, and modifications at newly major sources, 

both listed in Table 2-1. 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 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.

Finally, new industrial and commercial/residential sources will be entering title V 

permitting programs annually due solely to their GHG emissions. These commercial/residential 

sources that exceed the major source threshold solely due to their GHG emissions will not likely

have substantial applicable requirements in the near term and/or will not require as much time to 

process as those for industrial sources, which have other applicable requirements in addition to 

those related to their GHG emissions. However, upon further evaluation and in response to 

comments from permitting authorities, EPA believes its initial estimate of one-tenth of the 

burden hours required was considered too low. Permitting authorities would confront substantial 

challenges as they have little experience with such sources and their GHG emissions. 

Commercial/residential sources themselves will have no experience with the title V permitting 

process, which will increase the time needed to assess GHG emissions, complete the application, 

and respond to permitting authority comments. We also expect that in many cases the draft 

permits will undergo high levels of public participation through public comment periods, public 

 

27 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 Table 8 at 23. It is not known which 

revision will be required for any modification that exceeds the GHG significance level threshold; therefore, EPA 

averages the three permitting burdens to obtain a value of 40 hours per permit.
15

hearings, and petitions for reconsideration. Therefore, EPA assumes preparing a permit for 

affected commercial/residential sources will take 50% of the time a permitting authority 

currently spends on issuing a title V permit for an industrial source.

Table 2-4. Average Permitting Authority Burden per GHG Title V Permit

Activity

Burden 

Hours per 

Permit -

Industrial

Burden Hours 

per Permit -

Commercial/ 

Residentiala

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 that it would take the permitting authority 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 burdens necessary to provide notice and hold hearings. The amount of time interacting with EPA 

would be much less because of 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 a less time than for 

an industrial source because most of the costs are fixed, although the permit is simpler.

Table 2-5. Average Source Burden per GHG Title V Permit

Activity

Burden 

Hours per 

Permit -

Industrial

Burden Hours 

per Permit -

Commercial/ 

Residentiala

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 application 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. However, public hearing participation will likely require the same amount of time because of the fixed 

time burdens necessary to complete hearings.
16

Uncertainties in Estimates of Affected Sources

In order to estimate the number of facilities that exceed a given GHG threshold (such as a 

100 or 250 tpy CO2e emission threshold for baseline analysis), it is necessary to have emissions 

inventory data at the facility or building level, including, and particularly for lower threshold 

scenarios, numerous small sources in the residential and commercial sectors (e.g., apartment 

buildings and office buildings). Historically, however, EPA has not collected sector-wide, 

facility-level information for GHG emissions under the CAA (with the exception of information 

from electric generating units required to report CO2 emissions under the Acid Rain Program 

reporting requirements). To date, national EPA inventories of GHG sources have primarily 

focused on ‘top-down’ estimates of GHG emissions from sectors and sources, and not facilitylevel estimates. As a result, many of the uncertainties described here result from the absence of a 

comprehensive data set of facility-level GHG emissions across all sectors. A full description of 

the methodology used for determining facility level emissions is provided in our GHG thresholds 

evaluation study, which can be found at EPA-HQ-OAR-2009-0517.28

For residential, commercial, and smaller manufacturing operations, our current analysis 

relies on sample facility datasets and ‘top-down’ sector data (e.g., national fuel consumption 

statistics and/or building characteristics). There are inherent uncertainties in developing source 

counts from the allocation of these nationally aggregated statistics. The allocation factors we 

used, based on U.S. Energy Information Administration statistical sampling procedures and 

energy consumption statistics, are likely the best available to estimate the population of 

residential, commercial, and small manufacturing sources exceeding different GHG thresholds. 

 

28 “Technical Support Document for Greenhouse Gas Emissions Thresholds Evaluation;” Office of Air Quality 

Policy and Standards; March 29, 2010.
17

However, uncertainties may result in either overestimating or underestimating GHG emissions 

for a given individual facility. It is worth noting that our estimates for the largest GHG emitting

sources, such as electric utilities and refineries, are derived from bottom-up calculations of 

individual facility/building emissions so that there is increased certainty in evaluating and 

comparing the facility counts at the higher GHG threshold scenarios where residential and 

commercial sources are not highly affected. Although there are different levels of uncertainty in 

our facility level estimates across sectors, we do believe that the data are sufficiently robust to 

use in the aggregate to assess national permitting level impacts. 

EPA’s estimate of affected sources is based on their potential to emit (PTE) emissions, as 

opposed to actual emission levels. PTE is defined as the maximum capacity of a stationary

source to emit a pollutant under its physical and operational design, including certain legal 

limitations, for example, on emissions or hours of operation. NSR and Title V programs both 

use PTE for defining and identifying major sources. Although we have attempted to identify

reasonable adjustments to account for PTE in our methodology, there are significant 

uncertainties in our PTE-based estimates, particularly for the commercial, residential and small 

manufacturing sectors that have not traditionally been subject to any form of air permitting. In 

practice, for example, for the residential sector and for many of the facilities in the commercial 

sector, where CO2 emissions are primarily due to space heating/appliance usage, the combustion 

units are not likely to be used constantly at their maximum rated capacity because heating is not 

needed year-round and heating systems have thermostats. However, for our analysis we do 

assume full PTE-based estimates for the residential and commercial sectors, using PTE 

adjustment factors of 10 and 6.6, respectively to adjust actual emissions to PTE level. Absent 

industry specific data, for small manufacturing source categories we assume a PTE adjustment 
18

factor of 2; individual manufacturing facilities may operate their combustion equipment at levels 

above and below this capacity utilization rate, but we believe this PTE adjustment reflects a 

reasonable average rate across the variety of small manufacturing facilities included in the 

threshold analysis. Ultimately, the number of sources brought into either the NSR or Title V 

programs due solely to their PTE would depend on how EPA interprets PTE for various types of 

emitting equipment (e.g., space-heating furnaces in residential and commercial buildings), and 

the extent to which streamlined mechanisms are made available for sources to obtain legal limits 

on their PTE so that the programs are not applicable. No such decisions or interpretations have 

been made at this point and, as mentioned in the preamble, they will require significant time to 

develop. As a result, our threshold analysis uniformly assumes that no PTE limits are in place 

for any of the affected sectors, which may likely be the case in the immediate stages of GHG 

permitting for affected sources.

There is significant uncertainty in both our modification rate for newly major GHG 

sources and in our estimate of modification activity at existing major sources that will become 

subject to PSD review for GHG emission increases. The general uncertainty results from 

predicting not only how many major sources will undergo physical or operational changes in any 

given year, but also which of those changes would result in GHG emissions increases that would 

exceed a proposed GHG significance level. First, information is not available across sectors and 

source categories on the types and numbers of specific physical and operational changes that 

would result in GHG emissions increases in amounts that can be estimated and that therefore can 

be compared to various GHG emissions significance levels. Second, there is uncertainty in how 

many project modifications will occur within any given year because decisions on these projects 

are driven by facility- and sector-based growth patterns and business planning decisions. Lastly, 
19

some source categories and units that emit GHGs have not previously been subject to any type of 

permitting or reporting requirements; as a result, for these sources, there is very little historical 

record for use in estimating the number and types of projects that would occur at these sources 

and, in turn, establish an appropriate significance level for GHGs. 

Uncertainties in Permitting Costs

The primary reference sources for our estimate of burden hours and costs for permitting 

GHGs are the most recent ICRs for the PSD and title V programs. There a number of 

uncertainties introduced in using these references for costing GHG permitting activities. First, 

we are assuming that the average, conventional pollutant per-permit costs will be similar for 

GHGs. We do recognize the likelihood that residential and commercial permits would be 

simpler and have a lower per-permit burden than traditional industrial sources, and have made 

adjustments for this: however, for industrial sources we assume per-permit costs on par with 

what are estimated in the latest ICRs for PSD and title V programs. There is uncertainty in 

applying these average ICR-based costs to GHG permitting, even for industrial sources, because 

there is no historical track record for permitting these GHG sources and thus any cost 

efficiencies that have been realized over the years for conventional pollutant permitting, and thus 

reflected in the current ICRs, may not be initially realized for GHG permitting. For example, we 

assume the same public hearing estimate as included in the ICR for current PSD permits (i.e., 

that 1 in 50 major PSD permits require a hearing)—for GHG sources this number may be higher 

initially if there ends up being significantly more public interest in these permits. We do believe 

overall, however, that larger facilities, especially those affected at higher threshold levels, will 
20

have had sufficient permitting experience such that out ICR-based costs should reasonably 

reflect the added burden of including GHGs. 

As mentioned above, in our burden scenario analyses we do discount the ICR-based perpermit costs for residential and commercial sources to reflect what we believe will generally be 

simpler permits, involving primarily uniform combustion type equipment. For PSD we discount 

the per-permit cost by 30%, and for title V we discount the per-permit cost by 50%. There is 

significant uncertainty in these estimated discounts since we have no track record for permitting 

these smaller commercial and residential sources. However, we do believe that, based solely on 

the type and uniformity of the GHG emission units that would be subject to permitting at these 

facilities under lower GHG threshold scenarios, that average per-permit costs would be less than 

those currently experienced by more complex industrial facilities, with numerous emission units, 

for currently regulated pollutants. 

3. Evaluation of ICR-based Resource Requirements for Permitting Authorities at Different 

 Possible GHG Permitting Thresholds

For the proposal, EPA examined resource requirements at the statutory-based 100/250 

tpy CO2e emission levels—referred to as the ‘baseline’ analysis in the following tables—as well 

as at 10,000 tpy, 25,000 tpy, and 50,000 tpy CO2e levels. Due to comments received on the 

proposal and this improved burden analysis, the 10,000 tpy threshold was eliminated as not being 

a viable alternative since it did not adequately address administrative necessity concerns. In this 

analysis, in addition to the baseline analysis, EPA broadened the options to consider thresholds 

ranging from a 25,000 tpy CO2e major source applicability level for PSD and title V up to a 

100,000 tpy CO2e level, with associated PSD GHG significant levels of equal magnitude. EPA 
21

also considered the impact on burden of different PSD GHG significance levels combined with 

the 100,000 tpy major source level, including 50,000 CO2e, 75,000 CO2e, and 100,000 CO2e.

The choice of a PSD significance level also has a direct impact on title V burdens since a greater 

number of PSD permit requirements that result from modification activities will result in a 

greater number of necessary title V revisions.

PSD Permits

Table 3-1 presents the estimated burden for permitting authorities at different possible 

PSD GHG major source applicability thresholds. Descriptions of the different thresholds 

selected are provided below. Burden estimates for the PSD program are calculated based on 

listed values obtained from Tables 6-1 and 6-2 the NSR ICR. The ICR does not distinguish 

between new construction and modification actions; therefore, Table 3-1 combines the actions 

into permit preparation issuance based solely on GHG emissions or the addition of GHG 

requirements to permits being issued for conventional sources, or “anyway” permits. PSD permit 

preparation and issuance is further divided into industrial and commercial/residential sources 

since less time is required for commercial/residential sources.

Baseline

After receiving comments on the proposal and reevaluating the initial estimates, EPA has 

determined the impact of regulating GHG emissions under current PSD statutory thresholds for 

applicability. Baseline burden and cost were calculated at the 100 tpy and 250 tpy major source 

permitting threshold (the 100 tpy threshold applies to the 28 source categories identified in the 
22

Table 3-1. Additional Permitting Authority PSD Burden with GHG (Annual)

Activity

Burden 

Hours 

per 

Permit

Affected 

Permits

Total 

Burden 

(hours)

Total Cost 

($2007)a

100/250 tpy Major /100 tpy Significance Threshold (“Baseline”)

PSD Permit Preparation and Issuance - Industrial 301 26,089 7,852,789 $606,392,367

PSD Permit Preparation and Issuance - Commercial/Residentialb210 55,509 11,656,890 $900,145,046

Additions to Current PSD Applicationsc50 688 34,400 $2,656,368

Total Additional Burden 19,544,079 $1,509,193,780

25,000 tpy Major/ 25,000 tpy Significance Threshold

PSD Permit Preparation and Issuance - Industrial 301 9197 2,768,297 $213,767,894

PSD Permit Preparation and Issuance - Commercial/Residential 210 63 13,230 $1,021,621

Additions to Current PSD Applications 50 688 34,400 $2,656,368

Total Additional Burden 2,815,927 $217,445,883

50,000 tpy Major/ 50,000 Significance Threshold

PSD Permit Preparation and Issuance - Industrial 301 1906 573,706 $44,301,577

PSD Permit Preparation and Issuance - Commercial/Residential 210 28 5,880 $454,054

Additions to Current PSD Applications 50 688 34,400 $2,656,368

Total Additional Burden 613,986 $47,411,999

100,000 tpy Major/ 50,000 tpy Significance Threshold

PSD Permit Preparation and Issuance - Industrial 301 1809 544,509 $42,046,985

PSD Permit Preparation and Issuance - Commercial/Residential 210 4 840 $64,865

Additions to Current PSD Applications 50 688 34,400 $2,656,368

Total Additional Burden 579,749 $44,768,218

100,000 tpy Major/ 75,000 tpy Significance Threshold

PSD Permit Preparation and Issuance - Industrial 301 915 275,415 $21,267,546

PSD Permit Preparation and Issuance - Commercial/Residential 210 4 840 $64,865

Additions to Current PSD Applications 50 688 34,400 $2,656,368

Total Additional Burden 310,655 $23,988,779

100,000 tpy Major/ 100,000 tpy Significance Threshold

PSD Permit Preparation and Issuance - Industrial 301 20 6020 $464,864

PSD Permit Preparation and Issuance - Commercial/Residential 210 4 840 $64,865

Additions to Current PSD Applications 50 688 34,400 $2,656,368

Total Additional Burden 41,260 $3,186,097

Non-GHG-Based Threshold

PSD Permit Preparation and Issuance - Industrial 301 0 0 $0

PSD Permit Preparation and Issuance - Commercial/Residential 210 0 0 $0

Additions to Current PSD Applications 50 688 34,400 $2,656,368

Total Additional Burden 34,400 $2,656,368

aLabor cost of $77.22/hr from Prevention of Significant Deterioration and Non-Attainment Area New Source Review (Renewal), EPA ICR Number 1230.23, OMB 

Control Number 2060-0003, 2008. 

bAssume permit preparation and issuance for commercial/residential permits takes 70% the amount of time needed to prepare and issue an industrial permit. 

c

For current permit applications, assume it takes an additional 50 hours to include GHG requirements in the permit.
23

Clean Air Act section 169(1)). At these thresholds, the additional annual permitting burden for 

permitting authorities is estimated at 19.5 million hours at a cost of $1.5 billion.

Alternate Threshold Scenarios

After determining the baseline, additional annual burden was determined at six different 

major stationary source threshold levels in order to evaluate the relative differences in impacts to 

permitting authorities. Estimates represent the additional burden and costs due to GHG 

permitting beyond to the burden currently experienced by permitting authorities and sources.

The first scenario is the threshold proposed in the GHG Tailoring Rule of 25,000 tpy

CO2e. Results of this analysis indicate a total of 9,260 new permits, plus 688 permit actions to 

include GHG related requirements into current PSD permitting actions (including both new 

construction and modifications). This additional workload equates to 2.8 million hours for 

permitting authorities at a cost of $217 million. Note this is an increase over our initial results at 

proposal of over 185,000 burden hours and $8.7 million. Again, increases are due to more 

accurate estimates of annual modifications and burden associated with commercial/residential 

permits.

Increasing the emission threshold to 50,000 tpy will lead to an estimated 614,000 hours 

additional burden at a cost of $47.4 million. This scenario estimates 1,934 new construction or 

modification activities will be subject to PSD permitting annually due to GHG.

Setting a threshold of 100,000 tpy with a significance level of 50,000 tpy, permitting authorities 

will spend an estimated 580,000 hours preparing and issuing permits, at a cost of $44.8 million. 

At this level, EPA estimates 1,813 new actions require PSD permits.
24

Next, at the 100,000 tpy threshold with a 75,000 tpy significance level, the annual 

permitting authority burden will increase by 311,000 hours at a cost of $24 million. In this 

scenario, 919 new permit actions will occur annually. 

At a 100,000 tpy threshold, with a 100,000 tpy significance level for modifications, EPA 

estimates there are 20 new industrial PSD permit actions and four commercial/residential. 

Permitting authorities will spend an estimated 41,000 additional hours on permits at a cost of 

$3.2 million.

The final scenario involves only sources that are required to get a PSD permit due to their 

non-GHG emissions and then are further required to add GHG related requirements as a result of 

GHG emissions increases from modifications, or GHG emissions at newly constructed facilities, 

exceeding a significance threshold of 75,000 tpy GHG. In this scenario, only the annual 688 PSD 

permit actions derived from the NSR ICR are expected to need the inclusion of GHG related 

requirements to the permits. The additional burden to permitting authorities under this scenario is 

estimated at 34,000 hours at a cost of $2.7 million.

Title V Permits

Table 3-2 presents the estimated burden for permitting authorities at different possible 

title V GHG major source applicability thresholds. Descriptions of the different thresholds 

selected are provided below. Burden estimates are calculated and annual values derived from

Tables 7 and 8 of the current Title V ICR.29

 

29 For consistency, the permitting authority labor costs are updated to 2007 dollars utilizing the 2007 

General Schedule Salary Table from the Office of Personnel Management. 
25

Table 3-2. Additional Permitting Authority Title V Burden with GHG (Annual)

Activity

Burden 

Hour per 

Permit

Affected 

Permits

Total Burden 

(hours) Total Cost ($2007)b

100 tpy (associated with PSD 100/250 tpy maj./100 tpy sig.)

New Permit Preparation and Issuance – Industrial 428 71,829 30,742,812 $1,414,169,352

Add GHG component to new Non-GHG Permitb43 50 2,150 $98,900

New Permit Preparation and Issuance - Commercial/Residentialc214 1,985,948 424,992,872 $19,549,672,112

Permit Revisions - due to GHG 40 61,836 2,473,440 $113,778,240

Permit Revisions - add GHG to Current Non-GHG Permits 4 448 1,792 $82,432

Permit Renewalsd9 2,614 23,526 $1,082,196

Total Additional Burden 458,236,592 $21,078,883,232

25,000 tpy (associated with PSD 25,000 tpy maj./25,000 tpy sig.)

New Permit Preparation and Issuance – Industrial 428 2,103 899,941 $41,397,301

Add GHG component to new Non-GHG Permit 43 50 2,150 $98,900

New Permit Preparation and Issuance - Commercial/Residential 214 444 94,945 $4,367,455

Permit Revisions - due to GHG 40 9,197 367,880 $16,922,480

Permit Revisions - add GHG to Current Non-GHG Permits 4 448 1,792 $82,432

Permit Renewals 9 2,614 23,526 $1,082,196

Total Additional Burden 1,390,234 $63,950,764

50,000 tpy (associated with PSD 50,000 tpy maj./50,000 tpy sig.)

New Permit Preparation and Issuance – Industrial 428 981 419,868 $19,313,928

Add GHG component to new Non-GHG Permit 43 50 2,150 $98,900

New Permit Preparation and Issuance - Commercial/Residential 214 208 44,441 $2,044,271

Permit Revisions - due to GHG 40 1,906 76,240 $3,507,040

Permit Revisions - add GHG to Current Non-GHG Permits 4 448 1,792 $82,432

Permit Renewals 9 2,614 23,526 $1,082,196

Total Additional Burden 568,017 $26,128,767

100,000 tpy (associated with PSD 100,000 tpy maj./50,000 tpy sig.) 

New Permit Preparation and Issuance – Industrial 428 172 73,473 $3,379,773

Add GHG component to new Non-GHG Permit 43 50 2,150 $98,900

New Permit Preparation and Issuance - Commercial/Residential 214 18 3,781 $173,911

Permit Revisions - due to GHG 40 1,809 72,360 $3,328,560

Permit Revisions - add GHG to Current Non-GHG Permits 4 448 1,792 $82,432

Permit Renewals 9 2,614 23,526 $1,082,196

Total Additional Burden 177,082 $8,145,772
26

Table 3-2 cont’d. Additional Permitting Authority Title V Burden with GHG (Annual)

Activity

Burden 

Hour per 

Permit

Affected 

Permits

Total Burden 

(hours) Total Cost ($2007)b

100,000 tpy (associated with PSD 100,000 tpy maj./75,000 tpy sig.) 

New Permit Preparation and Issuance – Industrial 428 172 73,473 3,379,773

Add GHG component to new Non-GHG Permit 43 50 2,150 $98,900

New Permit Preparation and Issuance - Commercial/Residential 214 18 3,781 $173,911

Permit Revisions - due to GHG 40 915 36,600 $1,683,600

Permit Revisions - add GHG to Current Non-GHG Permits 4 448 1,792 $82,432

Permit Renewals 9 2,614 23,526 $1,082,196

Total Additional Burden 141,322 $6,500,812

100,000 tpy (associated with 100,000 tpy maj./ 100,000 tpy sig.)

New Permit Preparation and Issuance – Industrial 428 172 73,473 $3,379,773

Add GHG component to new Non-GHG Permit 43 50 2,150 $98,900

New Permit Preparation and Issuance - Commercial/Residential 214 18 3,781 $173,911

Permit Revisions - due to GHG 40 20 800 $36,800

Permit Revisions - add GHG to Current Non-GHG Permits 4 448 1,792 $82,432

Permit Renewals 9 2,614 23,526 $1,082,196

Total Additional Burden 105,522 $4,854,012

Non-GHG Based Threshold 

New Permit Preparation and Issuance – Industrial 428 0 0 0

Add GHG component to new Non-GHG Permit 43 50 2,150 $98,900

New Permit Preparation and Issuance - Commercial/Residential 21 0 0 $0

Permit Revisions - due to GHG 40 0 0 $0

Permit Revisions - add GHG to Current Non-GHG Permits 4 448 1,792 $82,432

Permit Renewals 9 2,614 23,526 $1,082,196

Total Additional Burden 27,468 $1,263,528

a

Salaries 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

b

Incorporating GHG information/requirements into significant revisions and permit renewals adds an additional 10% of the current time (90 hours each)

cNew commercial/residential permits require half the time needed for new industrial permits

dThe Title V ICR estimates that 3,267 permits annually undergo renewal - assume 80% of these involve combustion
27

Baseline

EPA reevaluated our estimates of the additional administrative burden and cost of 

including GHG emitters in the title V program at the current 100 tpy statutory threshold level. To 

determine the impact of regulating GHG emissions under current title V program, baseline 

burden and cost are calculated at the 100 tpy threshold level, which is the generally applied 

major source applicability level under title V. At the statutory threshold level, it is estimated that 

over six million sources will become newly subject to title V. A source generally must apply for 

a title V permit within one year of becoming subject to permitting, then the permitting authority 

must take final action (issue or deny) on the permit applications within 18 months of receipt. We 

expect these new permits will not be issued all at once, but rather will come in over a three-year 

time frame based on the statutory requirements listed above. Therefore, we assume that onethird of the newly subject sources will apply for and obtain a permit annually, requiring almost 

460 million burden hours to prepare and issue over two million new operating permits at an 

additional cost of $21.1 billion.

Alternate Threshold Scenarios

After determining the baseline, additional burden was determined at six different major 

stationary source threshold levels in order to evaluate the relative differences in impacts to 

permitting authorities. Estimates represent the additional annual burden and costs due to GHG 

permitting beyond the burden and costs currently experienced by permitting authorities and 

sources. 

The first scenario is the threshold proposed in the GHG Tailoring Rule of 25,000 tpy

CO2e. Results of this analysis indicate a total of 2,547 new permits, as well as 50 permits that 
28

would need to include GHG requirements in their permits. This additional workload equates to 

1.4 million hours for permitting authorities at a cost of $64 million. Note that this is an increase 

over our initial results at proposal of approximately 985,000 burden hours and $45 million. As 

with PSD programs, increases are due to more complete estimates of annual modifications and 

the revised burden associated with commercial/residential permits.

Increasing the emission threshold to 50,000 tpy will lead to an estimated 568,000 hours 

additional burden at a cost of $26.1 million. This scenario estimates 1,189 new sources will be 

subject to title V permitting annually due to GHG.

To examine the impact of significance levels on the overall burden, EPA considered the 

impact on burden of different PSD GHG significance levels of 50,000 CO2e, 75,000 CO2e, and 

100,000 CO2e combined with the 100,000 tpy major source level The choice of a PSD 

significance level has a direct impact on title V burdens since a greater number of PSD permit 

requirements that result from modification activities will result in a greater number of necessary

title V revisions. This effect is apparent in Table 3-2. Note that for all three scenarios, EPA 

estimates there are 172 industrial and 18 commercial/residential new title V permit actions due to 

GHG. 

Setting a threshold of 100,000 tpy with a PSD significance level of 50,000 tpy, permitting 

authorities will spend an estimated 177,000 hours preparing and issuing permits, at a cost of $8.1 

million. Note that under this scenario, 1,809 revisions are estimated annually to update existing 

operating permits due to modification activities. Utilizing a 75,000 tpy PSD significance level, 

the annual permitting authority burden is estimated to increase by 161,000 hours at a cost of $7.4 

million. At this significance level, 915 operating permit revisions will be necessary due to GHG. 

This decrease from the previous scenario is due to fewer modifications exceeding the higher 
29

significance level threshold and requiring revisions to an operating permit. At a 100,000 tpy 

threshold, with a 100,000 tpy PSD significance level for modifications, EPA estimates there are 

only 20 permit revisions annually. Permitting authorities will spend an estimated 106,000 

additional hours on permits at a cost of $4.9 million.

The final scenario involves only sources that are required to get a title V permit for 

emissions other than GHG and that are required to add GHG related requirements. Under this 

scenario, only the annual issuance of 50 permits noted in the Title V ICR are expected to need 

the inclusion of GHG related requirements to the permits. The additional burden to permitting 

authorities under this scenario is estimated at 27 million hours at a cost of $1.3 million.

4. Burden Relief Estimates for Permitting Authorities and Sources at Several Possible 

GHG Major Source Applicability Thresholds for Title V and PSD

The following tables indicate the estimated burden relief when comparing the baseline 

levels with several threshold levels for GHG applicability as described in the previous sections. 

In Tables 4-1 through 4-4, the first three columns indicate the cost per permit and total cost to 

permitting authorities at a GHG threshold level equal to the statutory threshold levels for title V 

and PSD (100 and 100/250 tpy, respectively). The next three columns reflect the estimated costs 

for permitting authorities with the permitting thresholds (both for PSD and title V) set at the 

specified levels. In the final three columns, the burden relief is estimated – the time and costs 

alleviated relative to the baseline levels by establishing several GHG permitting thresholds as 

previously described.

The burden relief for sources at the different permitting thresholds is presented in Tables 

4-5, 4-6, and 4-7 below. Table 4-8 estimates the cost savings if a non-GHG based related trigger 
30

is used. This information on burden relief was used to compile the final Regulatory Impact 

Analysis (RIA) for the final GHG tailoring rule. Please see the final RIA contained in the public 

docket for this GHG tailoring rule for a full explanation and description of the burden relief 

provided by the final GHG tailoring rule actions. 
31

Table 4-1. Estimated Burden Relief for Permitting Authorities Utilizing a 25,000 tpy Major/ 25,000 tpy PSD Significance Threshold

All Title V 100tpy and PSD 250 tpy 25,000 tpy or Greater Avoided Burden

Activity

Cost per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Cost 

per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Cost 

per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Title V Permits

New Industrial - Due to GHG $19,688 71,829 $1,414,175,915 $19,688 2,103 $41,403,864 $19,688 69,726 $1,372,772,051

Current Industrial - Add GHG $1,978 50 $98,900 $1,978 50 $98,900 $1,978 0 $0

New Commercial/Residential $9,844 1,985,948 $19,549,672,112 $9,844 444 $4,370,736 $9,844 1,985,504 $19,545,301,376

Permit Revisions - Due to GHG $1,840 61,836 $113,778,240 $1,840 9,197 $16,922,480 $1,840 52,639 $96,855,760

Permit Revisions - Add GHG $184 448 $82,432 $184 448 $82,432 $184 0 $0

Permit Renewals $414 2,614 $1,082,196 $414 2,614 $1,082,196 $414 0 $0

Total Permits Affected 2,122,725 14,856 2,107,869

PSD Permits

New Industrial $23,243 26,089 $606,386,627 $23,243 9,197 $213,765,871 $23,243 16,892 $392,620,756

New Commercial/Residential $16,216 55,509 $900,133,944 $16,216 63 $1,021,608 $16,216 55,446 $899,112,336

Current Applications - Add GHG $3,861 688 $2,656,368 $3,861 688 $2,656,368 $3,861 0 $0

Total Permits Affected 82,286 9,948 72,338

Total Permitting Authority Costs $22,588,066,734 $281,404,455 $22,306,662,279
32

Table 4-2. Estimated Burden Relief for Permitting Authorities Utilizing a 50,000 tpy Major/50,000 tpy PSD Significance Threshold

All Title V 100tpy and PSD 250 tpy 50,000 tpy or Greater Avoided Burden

Activity

Cost per 

Permit 

(2007$)

Number 

of Permits

Total Cost 

(2007$)

Cost 

per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Cost 

per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Title V Permits

New Industrial - Due to GHG $19,688 71,829 $1,414,175,915 $19,688 981 $19,313,928 $19,688 70,848 $1,394,861,987

Current Industrial - Add GHG $1,978 50 $98,900 $1,978 50 $98,900 $1,978 0 $0

New Commercial/Residential $9,844 1,985,948 $19,549,672,112 $9,844 208 $2,047,552 $9,844 1,985,740 $19,547,624,560

Permit Revisions - Due to GHG $1,840 61,836 $113,778,240 $1,840 1,906 $3,507,040 $1,840 59,930 $110,271,200

Permit Revisions - Add GHG $184 448 $82,432 $184 448 $82,432 $184 0 $0

Permit Renewals $414 2,614 $1,082,196 $414 2,614 $1,082,196 $414 0 $0

Total Permits Affected 2,122,725 6,207 2,116,518

PSD Permits

New Industrial $23,243 26,089 $606,386,627 $23,243 1,906 $44,301,158 $23,243 24,183 $562,085,469

New Commercial/Residential $16,216 55,509 $900,133,944 $16,216 28 $454,048 $16,216 55,481 $899,679,896

Current Applications - Add GHG $3,861 688 $2,656,368 $3,861 688 $2,656,368 $3,861 0 $0

Total Permits Affected 82,286 2,622 79,664

Total Permitting Authority Costs $22,588,066,734 $73,543,622 $22,514,523,112
33

Table 4-3. Estimated Burden Relief for Permitting Authorities Utilizing a 100,000 tpy Major/75,000 tpy PSD Significance Threshold

All Title V 100tpy and PSD 250 tpy 100,000 tpy; 75,000 tpy or Greater Avoided Burden

Activity

Cost per 

Permit 

(2007$)

Number 

of Permits

Total Cost 

(2007$)

Cost 

per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Cost 

per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Title V Permits

New Industrial - Due to GHG $19,688 71,829 $1,414,175,915 $19,688 172 $3,386,336 $19,688 71,657 $1,410,789,579

Current Industrial - Add GHG $1,978 50 $98,900 $1,978 50 $98,900 $1,978 0 $0

New Commercial/Residential $9,844 1,985,948 $19,549,672,112 $9,844 18 $177,192 $9,844 1,985,930 $19,549,494,920

Permit Revisions - Due to GHG $1,840 61,836 $113,778,240 $1,840 915 $1,683,600 $1,840 60,921 $112,094,640

Permit Revisions - Add GHG $184 448 $82,432 $184 448 $82,432 $184 0 $0

Permit Renewals $414 2,614 $1,082,196 $414 2,614 $1,082,196 $414 0 $0

Total Permits Affected 2,122,725 4,217 2,118,508

PSD Permits

New Industrial $23,243 26,089 $606,386,627 $23,243 915 $21,267,345 $23,243 25,174 $585,119,282

New Commercial/Residential $16,216 55,509 $900,133,944 $16,216 4 $64,864 $16,216 55,505 $900,069,080

Current Applications - Add GHG $3,861 688 $2,656,368 $3,861 688 $2,656,368 $3,861 0 $0

Total Permits Affected 82,286 1,607 80,679

Total Permitting Authority Costs $22,588,066,734 $30,499,233 $22,557,567,501
34

Table 4-4. Estimated Burden Relief for Permitting Authorities Utilizing a Non-GHG Trigger

All Title V 100tpy and PSD 250 tpy Non-GHG Trigger Avoided Burden

Activity

Cost per 

Permit 

(2007$)

Number 

of Permits

Total Cost 

(2007$)

Cost 

per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Cost 

per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Title V Permits

New Industrial - Due to GHG $19,688 71,829 $1,414,175,915 $19,688 0 $0 $19,688 71,829 $1,414,175,915

Current Industrial - Add GHG $1,978 50 $98,900 $1,978 50 $98,900 $1,978 0 $0

New Commercial/Residential $9,844 1,985,948 $19,549,672,112 $9,844 0 $0 $9,844 1,985,948 $19,549,672,112

Permit Revisions - Due to GHG $1,840 61,836 $113,778,240 $1,840 0 $0 $1,840 61,836 $113,778,240

Permit Revisions - Add GHG $184 448 $82,432 $184 448 $82,432 $184 0 $0

Permit Renewals $414 2,614 $1,082,196 $414 2,614 $1,082,196 $414 0 $0

Total Permits Affected 2,122,725 3,112 2,119,613

PSD Permits

New Industrial $23,243 26,089 $606,386,627 $23,243 0 $0 $23,243 26,089 $606,386,627

New Commercial/Residential $16,216 55,509 $900,133,944 $16,216 0 $0 $16,216 55,509 $900,133,944

Current Applications - Add GHG $3,861 688 $2,656,368 $3,861 688 $2,656,368 $3,861 0 $0

Total Permits Affected 82,286 688 81,598

Total Permitting Authority Costs $22,588,066,734 $3,919,896 $22,584,146,838
35

Table 4-5. Estimated Burden Relief for Sources Utilizing a 25,000 tpy Major/25,000 tpy PSD Significance Threshold

All Title V 100tpy and PSD 250 tpy 25,000 tpy or Greater Avoided Burden

Activity

Cost per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Cost 

per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Cost 

per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Title V Permits

New Industrial - Due to GHG $46,350 71,829 $3,329,289,600 $46,350 2,103 $97,474,050 $46,350 69,726 $3,231,815,550

Current Industrial - Add GHG $4,440 50 $222,000 $4,440 50 $222,000 $4,440 0 $0

New Commercial/Residential $23,175 1,985,948 $46,024,344,900 $23,175 444 $10,289,700 $23,175 1,985,504 $46,014,055,200

Permit Revisions - Due to GHG $1,677 61,836 $103,698,972 $1,677 9,197 $15,423,369 $1,677 52,639 $88,275,603

Permit Revisions - Add GHG $156 448 $69,888 $156 448 $69,888 $156 0 $0

Permit Renewals $780 2,614 $2,038,920 $780 2,614 $2,038,920 $780 0 $0

Total Permits Affected 2,122,725 14,856 2,107,869

PSD Permits

New Industrial $84,530 26,089 $2,205,303,170 $84,530 9,197 $777,422,410 $84,530 16,892 $1,427,880,760

New Commercial/Residential $59,152 55,509 $3,283,468,368 $59,152 63 $3,726,576 $59,152 55,446 $3,279,741,792

Current Applications - Add GHG $21,669 688 $14,908,272 $21,669 688 $14,908,272 $21,669 0 $0

Total Permits Affected 82,286 9,948 72,338

Total Source Costs $54,963,344,090 $921,575,185 $54,041,768,905
36

Table 4-6. Estimated Burden Relief for Sources Utilizing a 50,000 tpy Major/50,000 tpy PSD Significance Threshold

All Title V 100tpy and PSD 250 tpy 50,000 tpy or Greater Avoided Burden

Activity

Cost per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Cost 

per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Cost 

per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Title V Permits

New Industrial - Due to GHG $46,350 71,829 $3,329,289,600 $46,350 981 $45,469,350 $46,350 70,848 $3,283,820,250

Current Industrial - Add GHG $4,440 50 $222,000 $4,440 50 $222,000 $4,440 0 $0

New Commercial/Residential $23,175 1,985,948 $46,024,344,900 $23,175 208 $4,820,400 $23,175 1,985,740 $46,019,524,500

Permit Revisions - Due to GHG $1,677 61,836 $103,698,972 $1,677 1,906 $3,196,362 $1,677 59,930 $100,502,610

Permit Revisions - Add GHG $156 448 $69,888 $156 448 $69,888 $156 0 $0

Permit Renewals $780 2,614 $2,038,920 $780 2,614 $2,038,920 $780 0 $0

Total Permits Affected 2,122,725 6,207 2,116,518

PSD Permits

New Industrial $84,530 26,089 $2,205,303,170 $84,530 1,906 $161,114,180 $84,530 24,183 $2,044,188,990

New Commercial/Residential $59,152 55,509 $3,283,468,368 $59,152 28 $1,656,256 $59,152 55,481 $3,281,812,112

Current Applications - Add GHG $21,669 688 $14,908,272 $21,669 688 $14,908,272 $21,669 0 $0

Total Permits Affected 82,286 2,622 79,664

Total Source Costs $54,963,344,090 $233,495,628 $54,729,848,462
37

Table 4-7. Estimated Burden Relief for Sources Utilizing a 100,000 tpy Major/75,000 tpy PSD Significance Threshold

All Title V 100tpy and PSD 250 tpy 100,000 tpy; 75,000 tpy or Greater Avoided Burden

Activity

Cost per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Cost 

per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Cost 

per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Title V Permits

New Industrial - Due to GHG $46,350 71,829 $3,329,289,600 $46,350 172 $7,972,200 $46,350 71,657 $3,321,317,400

Current Industrial - Add GHG $4,440 50 $222,000 $4,440 50 $222,000 $4,440 0 $0

New Commercial/Residential $23,175 1,985,948 $46,024,344,900 $23,175 18 $417,150 $23,175 1,985,930 $46,023,927,750

Permit Revisions - Due to GHG $1,677 61,836 $103,698,972 $1,677 915 $1,534,455 $1,677 60,921 $102,164,517

Permit Revisions - Add GHG $156 448 $69,888 $156 448 $69,888 $156 0 $0

Permit Renewals $780 2,614 $2,038,920 $780 2,614 $2,038,920 $780 0 $0

Total Permits Affected 2,122,725 4,217 2,118,508

PSD Permits

New Industrial $84,530 26,089 $2,205,303,170 $84,530 915 $77,344,950 $84,530 25,174 $2,127,958,220

New Commercial/Residential $59,152 55,509 $3,283,468,368 $59,152 4 $236,608 $59,152 55,505 $3,283,231,760

Current Applications - Add GHG $21,669 688 $14,908,272 $21,669 688 $14,908,272 $21,669 0 $0

Total Permits Affected 82,286 1,607 80,679

Total Source Costs $54,963,344,090 $104,744,443 $54,858,599,647
38

Table 4-8. Estimated Burden Relief for Sources Utilizing a Non-GHG Trigger

All Title V 100tpy and PSD 250 tpy Non-GHG Trigger Avoided Burden

Activity

Cost per 

Permit 

(2007$)

Number 

of Permits

Total Cost 

(2007$)

Cost 

per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Cost 

per 

Permit 

(2007$)

Number 

of 

Permits

Total Cost 

(2007$)

Title V Permits

New Industrial - Due to GHG $46,350 71,829 $3,329,289,600 $46,350 0 $0 $46,350 71,829 $3,329,289,600

Current Industrial - Add GHG $4,440 50 $222,000 $4,440 50 $222,000 $4,440 0 $0

New Commercial/Residential $23,175 1,985,948 $46,024,344,900 $23,175 0 $0 $23,175 1,985,948 $46,024,344,900

Permit Revisions - Due to GHG $1,677 61,836 $103,698,972 $1,677 0 $0 $1,677 61,836 $103,698,972

Permit Revisions - Add GHG $156 448 $69,888 $156 448 $69,888 $156 0 $0

Permit Renewals $780 2,614 $2,038,920 $780 2,614 $2,038,920 $780 0 $0

Total Permits Affected 2,122,725 3,112 2,119,613

PSD Permits

New Industrial $84,530 26,089 $2,205,303,170 $84,530 0 $0 $84,530 26,089 $2,205,303,170

New Commercial/Residential $59,152 55,509 $3,283,468,368 $59,152 0 $0 $59,152 55,509 $3,283,468,368

Current Applications - Add GHG $21,669 688 $14,908,272 $21,669 688 $14,908,272 $21,669 0 $0

Total Permits Affected 82,286 688 81,598

Total Source Costs $54,963,344,090 $17,239,080 $54,946,105,010
39

APPENDIX A

Table A-1. Newly Major Affected Source Estimates Based on Threshold Level

Source Type 100/250 tpy PSD 100 tpy Title V 25,000 tpy 50,000 tpy 100,000 tpy

EGUs 285 285 124 0 0

Industrial 141,160 170,910 4,002 1,934 256

Oil/Gas/Coal production 2,588 2,588 187 75 52

Waste Treatment 3,344 3,358 1,927 910 193

Commercial 731,477 1,355,921 1,161 600 51

Residential 182,350 4,535,500 160 20 0

Total 1,061,204 6,068,562 7,561 3,539 552

Based on information contained in the “Technical Support Document for Greenhouse Gas Emissions Thresholds Evaluation;” Office of Air 

Quality Policy and Standards; March 29, 2010 and information retrieved from EPA's enforcement and compliance history online (ECHO) 

database during January 2010. ECHO is a computer-data based created and maintained by the EPA that contains source-specific data submitted 

primarily by state and local environmental agencies. See http://www.epa-echo.gov/echo/index.html.
40

United States

Environmental Protection

Agency

Office of Air Quality Planning and 

Standards

Health and Environmental Impacts 

Division

Research Triangle Park, NC

Publication No. EPA452/R-10-003

April 2010