p.1 

OAR Box 1796 

Prepped by Keeia Richards 

Document Number: 

24) IV-H-47 

Docket Number: 

A-90-37 

Printed 10/31/2008 4:20:37 PM Sheet 24 of 107 
P.2 

A-90-37 

IV-H-47 

Bill Harnett 

11/19/2002 09:54 AM 

To: Amy_L._Farrell@omb.eop.gov 

cc: Arthur_G._Fraas@omb.eop.gov, Bill Wehrum/DC/USEPA/US@EPA, 

DaveSvendsgaard/RTP/USEPA/US@EPA, 

Lorraine_D._Hunt@omb.eop.gov, Pam Smith/RTP/USEPA/US@EPA 

Subject: Final Rule ICRQ 

ICR-NSR-APPLICABILITY 11-07-02 

m<nm 

EPA AIR DOCKET 
P.3 

United States Environmental Protection Agency 

EPA Office of Air and Radiation 

Office of Air Quality Planning and Standards 

Innovative Strategies and Economics Group 

Integrated Implementation Group 

November, 2002 

INFORMATION COLLECTION REQUEST 

FOR CHANGES TO THE 40 CFR 

PARTS 51 and 52 

PSD AND NSR APPLICABILITY 

REQUIREMENTS FOR MODIFICATIONS 

TO EXISTING SOURCES 

prepared by 

Daniel Charles Mussatti, Senior Economist 

Innovative Strategies and Economics Group 

Air Quality Strategies and Standards Division 

EPA #1713.04 
P.4 

Executive Summary This rulemaking takes final action on several changes to the major NSR 

program by providing: 

• a new method for determining baseline emissions, 

• a new actual-to-projected-actual methodology for determining whether 

a major modification will occur, 

• a new applicability provisions for emission units designated as Clean 

Units or that participate in pollution control projects (PCPs), 

• changes to let major stationary sources manage facility wide air 

emissions through a Plant-wide Applicability Limit (PAL) without 

requiring a preconstruction major NSR permit. 

Further efforts are also under way at this time to develop a formal 

definition of what constitutes RMR&R and describe a program through 

which sources of pollution may voluntarily participate and potentially 

avoid costly and unnecessary major NSR determinations and permits, 

based upon the reasonableness of the projects undertaken and offering 

relief from the regulatory uncertainty associated with permit-related 

decisions. 

Table E.l Aggregate Change in Source, RA, and Federal Burden and Cost" for this 

Rulemaking 

Regulatory Change 

SOURCES 

Baseline Determination 

Avoided Major Source NSR 

New Monitoring Requirements 

Actual-to-projected-actual Determination 

Plant-wide Applicability Limits (PALs) 

Avoided Major Source NSR 

New Monitoring Requirements 

Clean Units Test 

Pollution Control Projects 

Source Total 

RAs 

FEDERAL 

Number of 

Affected Entities 

3 

3 

8 

1 

1 

1 

1 

14 

112 

1 

Annual Burden 

Hours 

(2,5171 

300 

&ZJ2J 

(839) 

100 

(§391 

(839) 

(11.346) 

8.960 

0 

Annualized 

Cost 

(§18A7Z51 

$225,000 

(§503,4001 

(§J2£251 

$7,500 

(§62^251 

($62,925) 

(S648.450) 

$331,520. 

$0 

Average Cost per 

Entity 

&62£251 

$7,500 

(§62,925). 

(§62^25). 

$7,500 

(§62^25). 

($62,925) 

($46,318) 

$2,960 

$0 

In 2002 dollars. 

Detailed discussion of the individual components of this rulemaking can 

be found in its preamble. 

While the overall effect of this rulemaking is a relaxation of the burden 

currently imposed on sources, there are several factors that dampen that 

effect. First of all, while eventually this rulemaking will potentially apply 

to all sources in attainment and nonattainment areas, in the three years 

immediately following the promulgation of this rulemaking, the Agency 
P.5 

anticipates the following Federally controlled areas will be affected 

immediately by the changes discussed above. Affected entities within the 

life of this ICR revision include: 

Federal Permitting Authorities: including Regional and Office of Air 

and Radiation environmental officers 

States where the management of the program has been delegated back 

to the State 

Federally controlled areas such as outer continental shelf drilling 

platforms, Tribal lands, and Federal territories and holdings (e.g., 

American Samoa) 

Sources of air pollution within attainment areas within the affected 

States, Tribal lands, and other Federally controlled areas 

From the data available for this analysis, 10 to 12 percent of all permitted 

sources are in states that have Federally managed programs. Among these 

states, approximately one third (about 3 to 4 percent of all permitted 

sources nationally) are in PSD areas. These are the sources potentially 

affected by this ICR revision. Therefore, just over one-thirtieth of any 

potential full-time reductions from most of this rulemaking are evident 

during the time frame of this ICR. 

Second, along with the elements of this rulemaking that constitute a 

reduction in burden, the Agency determined it was prudent to include a 

formal requirement for sources to demonstrate their post-change emissions 

do not exceed the preconstruction projection. To do this, EPA decided 

some sources should keep and maintain actual emission records for at least 

five years if there is a reasonable possibility that a project that is not part 

of a major modification may result in a significant emissions increase of a 

regulated NSR pollutant. While most of the emission monitoring and 

recordkeeping tasks should already be part of the operations of each 

facility, some sources may have to undertake new monitoring and 

recordkeeping tasks, and most sources will have some de minimis change 

in their reporting practices. The additional burden of these small changes 

dampens the effect of the other elements of this rulemaking. 

Since the aggregate effect of the individual parts of this rulemaking 

constitute a reduction in the burden imposed by the Federal government 

on sources and State and local environmental management organizations, 

this rulemaking is consistent with the Office of Management and Budget's 

(OMB's) guidance for the reduction of burden when and wherever 

possible.' 

Office of the President of the United States, Office of Management and 

Budget, Office of Information and Regulatory Affairs; April 2002; 

Managing Information Collection and Dissemination; 

http://www.whitehouse.gov/omb/inforeg/paperwork_policy_report_fina 

l.pdf 
P.6 

CONCLUSION: 

This rulemaking represents a POTENTIAL DECREASE IN BURDEN to sources. 

This rulemaking represents an INCREASE IN BURDEN to States and other 

Reviewing Authorities for all parts of this rulemaking. 

Because this rulemaking represents a decrease in burden, the Agency determined there is NO SIGNIFICANT IMPACT ON A SUBSTANTIAL NUMBER OF 

SMALL ENTITIES. 

CAVEAT: Nothing in this analysis should be construed as constituting the 

full effect of any of the program elements discussed. This analysis pertains 

to only a subset of the full effect - to those affected sources located in 

areas attaining the appropriate air quality standard and that are also 

Federally managed. The full effect of these programs, while discussed 

briefly in this analysis, lags the promulgation of this rulemaking due to the 

time needed for States to modify their SIPs. The Agency expects the full 

effect of this rulemaking will be included in the next ICR update in 2004. 
P.7 

EPA TRACIKING 

NUMBfeR: 1,2074.01 

1 Identification of the Information Collection 

1.1 Title This document fulfills the Agency's requirements under the Paperwork 

Reduction Act (PRA) with regards to determining the regulatory burden 

associated with the promulgation of new applicability requirements for 

modifications at sources subject to parts C and D of title I of the Clean Air 

Act (the Act, or CAA), Prevention of 

Significant Deterioration (PSD) and 

Nonattainment New Source Review 

(NSR). It has been assigned EPA tracking 

number 2074.01. The title of this 

Information Collection Request (ICR) is 

"Information Collection Request for 

Changes to the 40 CFR Parts 51 and 52 PSD and NSR Applicability 

Requirements for Modifications to Existing Sources" 

1.2 Description Historically, the program called the "major NSR program" derives its 

authority from parts C and D of Title I of the Act and is a preconstruction 

review and permitting program applicable to new or modified major 

stationary sources of air pollutants. In areas not meeting National Ambient 

Air Quality Standards (NAAQS) and in ozone transport regions (OTR), 

the program is the "nonattainment" NSR program, implemented under the 

requirements of part D of title I of the Act. In attainment areas (areas 

meeting NAAQS) or in areas where there is insufficient information to 

determine whether they meet the NAAQS ("unclassifiable" areas), this 

Prevention of Significant Deterioration (PSD) program is implemented 

under the requirements of part C of Title I of the Act. Applicability of the 

major NSR program must be determined in advance of construction and is 

pollutant-specific. When a source triggers major NSR in attainment areas, 

it must install best available control technology (BACT) and conduct 

modeling and monitoring as necessary. If the source is located in a 

nonattainment area, it must install technology that meets the lowest 

achievable emission rate (LAER), secure emission reductions to offset any 

increases above baseline emission levels, and perform other analyses. 

In its current form, the NSR program is a combination of air quality 

planning and air pollution control technology program requirements for 

new and modified stationary sources of air pollution. In brief, section 109 

of the Act requires us to promulgate primary NAAQS to protect public 

health and secondary NAAQS to protect public welfare. Once the Agency 

set these standards, states must develop State Implementation Plans (SIPs) 

which contains emission limitations and other control measures to attain 

and maintain the NAAQS and to meet the other requirements of 

section 110(a) of the Act. 

INFORMATION COLLECTION REQUEST FOR CHANGES TO THE 40 CFR PARTS 51 and 52 

PSD AND NSR APPLICABILITY REQUIREMENTS FOR MODIFICATIONS TO EXISTING SOURCES 

Page 1 
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SIPs contain a preconstruction review program to manage the emissions 

from the construction and modification of any stationary source of air 

pollution to assure that the NAAQS are achieved and maintained, 

mandated by Title I. 

In response to comments, discussions, and recommendations from the 

public and stakeholders, the EPA is revising regulations governing major 

NSR programs. These revisions include changes in NSR applicability 

requirements for modifications to allow sources additional avenues for 

determining when a preconstruction permit is required.2 

Section 111(a)(4) of the Act defines the modification provisions of the 

NSR program in parts C and D: 

"... ['modification' means]... any physical change in, or change 

in the method of operation of, a stationary source which increases 

the amount of any air pollutant emitted by such source or which 

results in the emission of any air pollutant not previously emitted." 

By the definition of major a modification, the process involves a two-step 

test for determining whether source activities constitute a modification 

subject to major NSR requirements: whether a physical or operational 

change will occur that will result in a significant emissions increase over 

baseline actual levels and whether a significant net emissions increase will 

occur at the major stationary source. 

The reference to "any physical change .. . or change in the method of 

operation" could mean that even the repair or replacement of a single 

leaky pipe could meet the requirements for a major NSR modification. 

However, the EPA has previously adopted several limited exclusions from 

the "physical or operational change" component of the definition to 

recognize that routine maintenance, repair and replacement, and changes 

in hours of operation or in the production rate are not by themselves 

considered a physical change or change in the method of operation within 

the definition of major modification. The Agency also limited the scope of 

the statutory definition of modification by excluding all changes that do 

not result in an emissions increase at a major source above a "significant" 

level. Taken together, these regulatory limitations restrict the application 

of the major NSR program to only "major modifications" at existing major 

stationary sources. 

These provisions also let States make similar changes in their major 

NSR programs. 

INFORMATION COLLECTION REQUEST FOR CHANGES TO THE 40 CFR PARTS 51 and 52 

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One key attribute of the major NSR program in general is that sources 

with major modifications may "net" out of review by coupling the 

proposed emissions increases at the source with contemporaneous 

emissions reductions. In other words, a source can modify, or even 

completely replace, or add, emissions units without obtaining a major 

NSR permit as long as its "actual emissions" do not increase over baseline 

levels at the plant as a whole by a significant amount. 

Existing regulations define baseline actual emissions as "the average rate, 

in tpy, at which the unit actually emitted the pollutant during a 2-year 

period which precedes the particular date and which is representative of 

normal source operation." The permitting authorities will ordinarily allow 

use of a different time period "upon a determination that it is more 

representative of normal source operation." We have historically used the 

2 years immediately preceding the proposed change to establish the 

baseline. However, in some cases we have allowed use of an earlier 

period. 

EPA defines a "net emissions increase" as the increase in "actual 

emissions" from the particular physical or operational change (taking into 

account the use of emissions control technology and restrictions on hours 

of operation or rates of production where such controls and restrictions are 

federally enforceable), together with the source's other contemporaneous 

increases or decreases in actual emissions. 

Each source seeking an NSR permit must predict whether or not the 

proposed change will result in a significant net increase in the source's 

actual emissions. Currently, when a source unit (other than an electric 

utility steam generating unit)3 "has not begun normal operations," that 

unit's post-change actual emissions are equal the units Potential To Emit 

(PTE). This is referred to as the "actual-to-potential" test. Sources may 

avoid this presumption by agreeing to limit the unit's PTE through the 

use of practically enforceable restrictions. The net result of this process 

lets sources ensure no increase in their actual emissions above baseline 

levels following the change. 

This rulemaking takes final action on several changes to the major NSR 

program by providing: 

• a new method for determining baseline emissions, 

The regulations define electric utility steam generating units 

(EUSGUs), which have special rules for physical and operational 

changes that employ an actual-to-projected-actual methodology for all 

changes (but not replacement) at an existing electric utility steam 

generating units. 

INFORMATION COLLECTION REQUEST FOR CHANGES TO THE 40 CFR PARTS 51 and 52 

PSD AND NSR APPLICABILITY REQUIREMENTS FOR MODIFICATIONS TO EXISTING SOURCES 

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• a new actual-to-projected-actual methodology for determining whether 

a major modification will occur, 

• a new applicability provisions for emission units designated as Clean 

Units or that participate in pollution control projects (PCPs), 

• changes to let major stationary sources manage facility wide air 

emissions through a Plant-wide Applicability Limit (PAL) without 

requiring a preconstruction major NSR permit. 

Further efforts are also under way at this time to develop a formal 

definition of what constitutes RMR&R and describe a program through 

which sources of pollution may voluntarily participate and potentially 

avoid costly and unnecessary major NSR determinations and permits, 

based upon the reasonableness of the projects undertaken and offering 

relief from the regulatory uncertainty associated with permit-related 

decisions. 

Further explanation of these changes can be found in the discussion 

below. 

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PSD AND NSR APPLICABILITY REQUIREMENTS FOR MODIFICATIONS TO EXISTING SOURCES 

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2 

2.1 

Need and Use of the Collection 

Need / Authority 

for the Collection 

Title I of the Act authorizes EPA to collect this information. Through the 

NSR program it requires owners or operators of units that emit air 

pollutants to submit an application for a permit to construct, modify, or 

significantly alter the operations of each source of criteria pollutants. 

2.2 Practical Utility / 

Users of the 

Data 

2.3 Caveats and 

Considerations 

For EPA to carry out its required oversight function of reviewing 

preconstruction permits and assuring adequate implementation of the 

program, it must have available to it information on proposed construction 

and modifications. The burden estimates included in this ICR provides 

emissions, source, and control information for the PSD/NSR program. 

The information in this ICR is based upon the best data available to the 

Agency at this time. However, inconsistencies in reviewing authority 

(RA) reporting techniques, incomplete data sets, and sampling limitations 

imposed upon the Agency by the Paperwork Reduction Act necessitated a 

certain amount of extrapolation and "best-guess" estimations.4 

Consequently, the reader should not consider the conclusions to be an 

exact representation of the level of burden or cost that will occur. Instead, 

this ICR should be considered a directionally correct assessment of the 

impact the programmatic changes included in this rulemaking may have 

over the next three years. 

Throughout this ICR, the reader will observe estimated values that show 

accuracy to the single hour or dollar. However, reporting values at the 

single unit level can be misleading. In most situations, the proper way to 

present estimated data would be to determine an appropriate level of 

precision and truncate values accordingly, usually in terms of thousands or 

millions of units. For instance, a spreadsheet generated estimation of 

$5,456,295 could be presented in the text as $5.5 (millions) or $5,456 

(thousands). One problem with such an approach is the loss of data 

richness when the report contains a mixture of very large and very small 

numbers. Such was the case with this ICR, where source values are 

consistently in the millions and Federal values in the tens of thousands. 

Consequently, to avoid the loss of information through rounding, this ICR 

reports all values at the single unit level and reminds the reader that there 

is no implied precision inherent in this style of reporting. 

The term "reviewing authority" is synonymous with the term 

"permitting authority" used in previous permit-related analyses. The 

reader should consider these terms interchangeable for comparison 

purposes. 

INFORMATION COLLECTION REQUEST FOR CHANGES TO THE 40 CFR PARTS 51 and 52 

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3 

3.1 

Non-Duplication, Consultation, and Other Collection Criteria 

Non-Duplication 

3.2 Public Notice 

Requirements 

For approval of a proposed ICR, the Agency must ensure that it has taken 

every reasonable step to avoid duplication in its paperwork requirements 

in accordance with 5 CFR 1320.9. The Administrator asserts that, while 

the Clean Units portion of this rulemaking requires data repotting that is 

similar to that already being performed by sources for Operating Permit 

and Compliance Assurance Monitoring purposes, the data collected for 

this rulemaking is more specific than those other, similar, collections and 

constitutes a necessary component of the NSR program to ensure the 

protection of the environment. 

For any existing rule, § 3507(g) of the PRA limits how long a Director 

may take to approve a collection of information to 3 years. The ICR for 

the 40 CFR Part 51 and 52 Prevention of Significant Deterioration and 

New Source Review Program was renewed last in February of 2001. This 

ICR analysis presents an update to that renewal, based upon programmatic 

changes completed since February, 2001. For all of the elements of this 

rulemaking, significant public comment periods were given. 

3.3 Consultations 

3.4 Effects of Less 

Frequent 

Collection 

Following the 1996 proposal of changes to the NSR program, EPA held 

two public hearings and more than 50 stakeholder meetings with 

environmental groups; industry; and state, local, and federal agency 

representatives. 

The Act defines the rate of reporting by sources, states, and local entities. 

Consequently, less frequent collection is not possible. 

3.5 General 

Guidelines 

OMB's general guidelines for information collections must be adhered to 

by all Federal Agencies for approval of any rulemaking's collection 

methodology. In accordance with the requirements of 5 CFR 1320.5, the 

Agency believes: 

1. The NSR regulations do not require periodic reporting more frequently 

than semi-annually. 

2. The NSR regulations do not require respondents to participate in any 

statistical survey. 

3. Written responses to Agency inquiries are not required to be submitted 

in less than thirty days. 

INFORMATION COLLECTION REQUEST FOR CHANGES TO THE 40 CFR PARTS 51 and 52 

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4. Special consideration has been given in the design of the NSR 

program to ensure that the requirements are, to the greatest extent 

possible, the same for Federal requirements and those permitting 

authorities who already have preconstruction permitting programs in 

place. 

5. Confidential, proprietary, and trade secret information necessary for 

the completeness of the respondent's permit are protected from 

disclosure under the requirements of §503(e) and §114(c) of the Act. 

6. The NSR regulations do not require more that one original and two 

copies of the permit application, update, or revision to be submitted to 

the Agency. 

7. Respondents do not receive remuneration for the preparation of reports 

required by the Act or parts 51 or 52. 

8. To the greatest extent possible, the Agency has taken advantage of 

automated methods of reporting. 

9. The Agency believes the impact of NSR regulations on small entities 

to be insignificant and not disproportionate. 

The recordkeeping and reporting requirements contained in the current 

NSR program and the changes made in this rulemaking do not exceed any 

of the Paperwork Reduction Act guidelines contained in 5 CFR 1320.5, 

except for the guideline which limits retention of records by respondents 

to three years. The Act requires both respondents and State or local 

agencies to retain records for a period of five years. The justification for 

this exception is found in 28 U.S.C. 2462, which specifies five years as 

the general statute of limitations for Federal claims in response to 

violations by regulated entities. The decision in U.S. v. Conoco. Inc.. 

No. 83-1916-E (W.D. Okla., January 23, 1984) found that the five year 

general statute of limitations applied to the Clean Air Act. 

3.6 Confidentiality Confidentiality is not an issue for this rulemaking. In accordance with the 

Clean Air Act Amendments of 1990, the monitoring information to be 

submitted by sources as a part of their permit application and update; 

applications for revisions and renewals is a matter of public record. To 

the extent that the information required is proprietary, confidential, or of a 

nature that could impair the ability of the source to maintain its market 

position, that information is collected and handled subject to the 

requirements of §503(e) and § 114(c) of the Act. Information received 

and identified by owners or operators as confidential business information 

(CBI) and approved as CBI by EPA, in accordance with Title 40, Chapter 

1, Part 2, Subpart B, shall be maintained appropriately (see 40 CFR 2; 41 

INFORMATION COLLECTION REQUEST FOR CHANGES TO THE 40 CFR PARTS 51 and 52 

PSD AND NSR APPLICABILITY REQUIREMENTS FOR MODIFICATIONS TO EXISTING SOURCES 

Page 7 
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FR 36902, September 1, 1976; amended by 43 FR 39999, September 8, 

1978; 43 FR 42251, September 28, 1978; 44 FR 17674, March 23, 1979). 

3.7 Sensitive The consideration of sensitive questions, (i.e., sexual, religious, personal 

Questions

 o r ome r

 private matters), is not applicable to this rulemaking. The 

information gathered for purposes of establishing an operating permit for a 

source do not include personal data on any owner or operator. 

INFORMATION COLLECTION REQUEST FOR CHANGES TO THE 40 CFR PARTS 51 and 52 

PSD AND NSR APPLICABILITY REQUIREMENTS FOR MODIFICATIONS TO EXISTING SOURCES 

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4 The Respondents and the Information Requested 

4.1 Respondents There are over 14,500 sources subject to Title I operating permits 

requirements in the EPA's Operating Permits Database, encompassing all 

industry classifications in 34 states and the District of Columbia.5 This 

comprises the majority of the universe of potentially affected sources for 

the NSR program and for this ICR. Table 4-1 in the current ICR displays 

the industry classifications most commonly affected by NSR permitting 

requirements.6 Table 4.1, below, recreates that table for this analysis. 

Table 4.1 Potentially Affected Entities 

Industry Group 

Pulp and Paper Mills 

Paper Mills 

Chemical Processes 

Pharmaceuticals 

Petroleum Refining 

Automobile Manufacturing 

Electric Services 

Natural Gas Transport 

SIC 

261 

262 

281 

283 

291 

371 

491 

492 

NAICS 

32211,322121,322122, 32213 

322121,322122 

325181, 32512, 325131, 325182, 211112, 325998, 331311, 325188 

325411,325412,325413,325414 

32411 

336111, 336112, 336712, 336211, 336992, 336322, 336312, 33633, 

33634, 33635, 336399, 336212, 336213 

221111,221112,221113,221119,221121,221122 

48621,22121 

The New Source Review Program maintains its own separate database, the 

RACT / BACT / LAER Clearinghouse (RBLC) that gathers data on preconstruction permits for new and existing sources of pollution.7

 While 

incomplete, these data are the source selected by the EPA for the estimates 

The database does not include AK, AR, AZ, ID, KS, KY, MT, NJ, NM, 

PA, SD, TN, TX, UT, WA, and WY. While several of these states 

contain many sources subject to NSR, EPA believes the lack of their 

information in this database does not harm this analysis. 

Information Collection Request for 40 CFR Part 51 and 52 Prevention 

of Significant Deterioration and Nonattainment New Source Review, 

Office of Management and Budget (OMB) Control Number 2060-0003; 

EPA Form Number 1230.09. 

The RBLC does not contain a complete record of all PSD and NSR 

permits. Approximately 450 permit determinations are missing from 

Texas and 50 from Louisiana, and as many as 1,000 are missing from 

Region VI. From Region IX, the Agency believes California has not 

entered any information into the RBLC for at least the past 3 years. 

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in this ICR. The RBLC contains 1,142 PSD and NSR permits between 

1992 and the present. From the RBLC database, there are 11 three-digit 

SIC code classifications that comprise half of the permit determinations 

made since 1992, five of which appear on the current ICR list as 

comprising "most" of the determinations made. It takes 27 three-digit SIC 

code classifications to make up 75 percent of the determinations since 

1992, and there are 59 three-digit classifications in the set that makes up 

90 percent of the determinations since 1992. The energy industry comprise 

almost a quarter of all permit determinations, with almost 20 percent in the 

491 Electric Services classification and almost five percent in the 492 

Natural Gas Transport classification. Table 4.2 displays the distribution of 

RBLC determinations for the 11 three-digit SIC classifications that make 

up half of all determinations in the database. 

Table 4.2 RBLC Distribution of Permit Determinations Since 1992 

Industry Group 

Electric Services 

Natural Gas Transport 

Steel works, blast furnaces, electrometallurgical 

products, steel wiredrawing 

Gray and ductile iron foundries, steel foundries 

Electric and other Services, Service Utilities 

Pulp and Paper Mills 

Nitrogen Fertilizers, Phosphatic Fertilizers, and 

Pesticides and Agricultural Chemicals NEC 

Motor Vehicle, Passenger Car, and Truck Bodies, 

Motor Vehicle Parts and Accessories, Truck 

Trailers 

Sewerage Systems, Refuse Systems, and Sanitary 

Services NEC 

Petroleum Refining 

Rubber and Miscellaneous Plastic Products 

SIC 

491 

492 

331 

332 

493 

261 

287 

371 

495 

291 

308 

RBLC 

Count 

223 

52 

44 

42 

38 

34 

33 

33 

27 

26 

25 

NAICS 

221111,221112,221113,221119,221121, 

221122 

48621,22121 

324199, 331221, 331111, 331112, 331222, 

332618 

331511,331512 

261111,261112,261112,261119,261121, 

261122 

32211, 322121, 322122, 32213 

325311,325312,32532 

336111,336112,33612,336211,336212,336312, 

336322, 33633, 33634, 33635, 336399, 336992 

22132, 56292, 562212, 562213, 562219, 488119, 

56291,56171,562998 

32411 

326113, 326121, 32615, 32614, 325991, 326191, 

326121,326215,326199 

Among all potentially affected sources in the Title I database, 4,700 

sources (32.6 percent) have Standard Industrial Classification (SIC) codes 

designated as 999 - indicating the source did not identify a specific 

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The universe of 

potentially affected 

sources for this ICR 

update includes 

only sources in 

attainment areas in 

Federally controlled 

States, (Hawaii, 

Illinois, Indiana, 

Michigan, North 

Dakota, Nevada, 

New Hampshire, 

New Jersey, New 

York, Ohio, and 

South Dakota), 

other Federally 

controlled-areas, 

and 95 sources in 

Indian country. 

industry within which it operated.8 The remaining 9,800 sources subject 

to Title I operating permits requirements report specific source 

classifications within the EPA's Operating Permits Database. Of the 260 

three-digit SIC codes with Title I sources, only 15 have more than one 

percent of the total Title I sources (including the 999 classification). 

Including the 999 classification, it takes the seven classifications with the 

most sources in them to account for half of the Title I sources. Without the 

999 classification, it takes the top 19 three-digit SIC classifications to 

accumulate half of all Title I sources in the database. According to the 

analyses performed for the most recent ICR for the NSR program, 1,694 

sources in eight three-digit SIC code categories (40 NAICS categories) 

account for most of the source categories subject to NSR each year. Table 

4.1 displays these source SIC and North American Industry Classification 

System (NAICS) categories. 

Eventually, this rulemaking will affect all States, territories, and 

possessions of the United States, as well as all local and Tribal 

governments, but for the first three-year period of this rulemaking (the 

period covered by this ICR), most states will not be affected by this 

regulation due to the regulatory lag necessary for SIP review, revision, 

and approval. During this period, the only entities potentially affected by 

this final action will be located in areas where the Federal government has 

direct regulatory authority. These "Federally controlled areas" include 

Guam, Puerto Rico and the Virgin Islands; Washington D.C; Hawaii, 

Illinois, Indiana, Michigan, Minnesota, North Dakota, Nevada, New 

Hampshire, New Jersey, New York, Ohio, and South Dakota. The Federal 

government also has authority in Texas and Washington State, but only 

for one source category in each SIP, so this analysis will treat Texas and 

Washington State as though their SIPs were fully approved. Of the states 

in the Operating Permits Database, only New Jersey and South Dakota are 

not available for this analysis. 

The EPA estimated there are about 5,545 sources (about 38 percent of the 

total) in the 12 Federally controlled states, the District of Columbia, and in 

Indian Country - representing 222 different three-digit SIC code 

While the Federal government has changed its classifications system to 

the North American Industry Classification System (NAICS), the 

reporting process that supports the Agency's database for sources 

subject to Operating Permits requirements has not fully changed to the 

new system. Therefore, this report will continue employing the SIC 

system and simultaneously report the NAICS classification for each 

affected source category for future comparison purposes. 

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classifications.9 About 16 percent of the estimated sources had a 999 SIC 

code - about half of that for the Operating Permits Database. When the 

999 classifications is included, it takes 13 SIC classifications to account 

for half of the sources in the Federally controlled states. Without the 999 

classification, it takes 26 three-digit SIC classifications to account for half 

of the sources. For the eight SIC classifications reported in the current 

ICR (Table 4.1), the Agency estimated 884 sources would fall into those 

categories - about 16 percent of the total. Based upon these characteristics, 

the Agency determined the proxy methodology for estimating potentially 

affected sources in the Federally controlled states was a reasonable 

approximation of the true number and distribution of sources in those 

states. 

4.2 Information 

Requested 

The data required by sources for a complete major NSR preconstruction 

permit application can be found in the various parts of Title 40 of the 

Code of Federal Regulations (40 CFR). 40 CFR 50.166 specifies the 

minimum requirements that a PSD air quality permit under Part C of the. 

Act must contain to warrant approval as a revision to a State 

Implementation Plan (SIP). 40 CFR 52.21 delineates the Federal PSD 

permit program which applies to all Federal holdings other than States, 

delegated Tribal lands, outer continental shelf sources, and States that 

have not submitted a PSD program meeting the requirements of 40 CFR 

51.166. 40 CFR 51.165 specify the elements of an approvable State 

permit for preconstruction review in nonattainment areas under Part D of 

the Act. 40 CFR Part 51, Appendix S (Offset Ruling) and 40 CFR 52.24 

(construction moratorium) apply when a nonattainment area SIP has not 

been fully approved by EPA as having met the requirements of Part D of 

the Act. These citations can be found on the EPA website at: 

http://www.epa.gov/docs/epacfr40/chapt-I.info/subch-C.htm 

Because of a lack of information about the nature of sources in Indian 

Country, this analysis distributed the 95 affected sources over the 

database's SIC categories according to the distribution of sources in 

that database. 

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Table 4.3 Industry Data and Information Requirements for PSD Permit Applications 

Current Requirements 

Description of the nature, location, desiqn capacity, and typical operatinq schedule 

Detailed schedule for construction 

Description of continuous emission reduction system, emission estimates, and other information 

needed to determine that BACT is used 

Air quality impact, meteoroloqical, and topoqraphical data 

Nature and extent of, and air quality impacts of general commercial, residential, industrial, and other 

qrowth in area of source 

Use of air quality models to demonstrate compliance with NAAQS and increment 

A demonstration that the benefits of the proposed source significantly outweigh the environmental 

and social costs imposed as a result of its location, construction, or modification 

Information necessary to determine impact on AQRVs in Class I areas 

Air quality monitoring data 

Impairment of visibility, soils, and vegetation 

Air quality impact resulting from general commercial, residential, industrial, and other growth 

associated with source 

Written notice of proposed relocation from portable source 

Description of the location, design construction, and operation of building, structure, facility, or 

installation 

Description of the nature and amounts of emissions to be emitted 

Description of the air quality data and dispersion or other air quality modeling used 

Sufficient information to ensure attainment and maintenance of NAAQS 

Regulation Reference 

40CFR51.166(n)(2)(l) 

40CFR51.166(n)(2)(ii) 

40CFR51.166(n)(2)(iii) 

40CFR51.166(n)(3)(l) 

40CFR51.166(n)(3)(ii) 

40CFR51.166(k)&(l) 

Not a current 

requirement ° 

40CFR51.166(n)(4) 

40CFR51.166(m) 

40 CFR 51.166(o)(1) 

40CFR51.166(o)(2) 

40CFR51.166(l)(4)(iii)(d) 

40 CFR 51.160(c)(2) 

40 CFR 51.160(c)(1) 

40 CFR 51.160(f) 

40CFR51.160(c)-(e), 40 

CFR 51.161-163 

a A 1990 Act Requirement £173(a)(5 

Tables 4.3 summarizes the respondent data and information requirements 

which owners or operators of major sources must include in PSD 

construction permit applications. The tables also include the appropriate 

references in 40 CFR part 51 for the data and information requirements 

that govern the way States implement NSR programs. For each reference 

in Part 51, corresponding language will be found in part 52. Table 4.4 

summarizes the data and information requirements imposed by 40 CFR 

Parts 51 and 52 on States and other Permitting Authorities. 

Table 4.4 RA Data and Information Requirements 

Requirement 

Early FLM notification and opportunity to participate in meetinqs 

Submission of all permit applications to EPA 

Submission of notice of application, preliminary determination, degree of increment consumption, 

and opportunity for public comment 

Submission to FLM of permit applications 

Submission of written request to exempt sources from review 

Written request for use of innovative control technoloqy 

Establishinq and operatinq a permittinq proqram for all new sources 

Provide notice to EPA of all permits 

Provide for public comment for all NSR permits 

Regulation Reference 

40CFR51.166(p)(1)(ii) 

40CFR51.166(q)(1) 

40CFR51.166(q)(2)(iv) 

40CFR51.166(p)(1) 

40 CFR 52.21 (l)(4)(vi) 

40CFR51.166(s) 

40 CFR 51.160 

40 CFR 51.161(d) 

40 CFR 51.161 

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4.3 Collection 

Schedule 

Under the current NSR system, respondents are not subjected to a 

collection schedule per se under NSR permitting regulations of parts 51 

and 52. In general, each affected source is required to submit an 

application as a prerequisite to receiving a construction permit. 

Preparation of a construction permit application is a one-time-only activity 

for each project involving construction of a new source or modification of 

an existing source. The applicable SIP typically states the time period that 

is necessary to process a permit application and issue a permit; 

consequently, a prospective source would be obliged to work backward 

from the hopeful commencement of construction to determine the 

optimum submittal date for the application. However, while the current 

system does not require periodic reporting or surveys, the provisions of 

this rulemaking requires some sources to maintain records of emissions 

for five years and report if there is a significant emissions increase and/or 

if emissions are inconsistent with preconstruction projections. These 

requirements are in addition to similar (but not as detailed) requirements 

for emissions tracking and reporting under Title V Operating Permits 

regulations and Part 64 Compliance Assurance Monitoring rules. 

4.4 Small Entity 

Flexibility 

The Regulatory Flexibility Act (RFA) requires regulatory agencies, upon 

regulatory action, to assess that actions potential impact on small entities 

(businesses, governments, and small non-governmental organizations) and 

report the results of the assessments in (1) an Initial Regulatory Flexibility 

Analysis (IRFA), (2) a Final Regulatory Flexibility Analysis (FRFA), and 

(3) a Certification. For ICR approval, the Agency must demonstrate that it 

"has taken all practicable steps to develop separate and simplified 

requirements for small businesses and other small entities" (5 CFR 

1320.6(h)). In addition, the agencies must assure through various 

mechanisms that small entities are given an opportunity to participate in 

the rulemaking process. 

A Regulatory Flexibility Act Screening Analysis (RFASA) developed as 

part of a 1994 draft Regulatory Impact Analysis (RIA) and incorporated 

into the September 1995 ICR renewal analysis reported an initial 

regulatory flexibility screening analysis showed that the changes to the 

NSR program due to the 1990 Clean Air Act amendments would not have 

an adverse impact on small entities.I0 This analysis encompassed the 

entire universe of applicable major sources that were likely to also be 

small-businesses. The Agency estimates there are approximately 50 "small 

10 "Economic Assessment of the Impacts of Part C and D Regulatory 

Changes," June 2, 1994. 

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business" major sources. " Because the administrative burden of the NSR 

program are the primary source of the NSR program's regulatory costs, 

the analysis estimated a negligible "cost to sales" (regulatory cost divided 

by the business category mean revenue) ratio for this source group. 

Currently, there is no economic basis for a different conclusion at this 

time. 

4.4.1 Measures to 

Avert Impacts 

on Small Entities 

The Agency may not, as a general rule, exempt a major source of air 

pollution. Since the impacts of NSR regulations which may impact small 

entities occur predominantly at major sources, little room exists for 

regulatory flexibility to avert the impact of the proposed rulemaking on 

small entities through exemption. However, even though the Title V 

program does not have an adverse impact on a significant number of small 

businesses, EPA takes measures to assist sources in affected small entities 

through the implementation of small business stationary source technical 

and environmental compliance assistance programs, as called for in 

section 507 of the Act. These programs can reduce the reporting burden of 

small entities which are subject to major NSR and may significantly 

alleviate the economic burden on small sources by establishing programs 

to assist small businesses with determining what Act requirements apply 

to their sources and when they apply, and guidance on alternative control 

technology and pollution prevention for small businesses. 

4.4.2 Measures to 

Mitigate Impacts 

on Small Entities 

Generally, EPA has several methods by which it can minimize the 

disproportionate effect of a rulemaking on small entities. Net costs an be 

reduced through the use of small business stationary source technical and 

environmental compliance assistance programs, the Agency can defer 

applicability for one or several source categories, and mitigation can be 

achieved by discretion of the Federal government. However, these 

avenues do not apply to the NSR program. 

4.5 Environmental 

Justice 

Considerations 

The President's priorities in promoting environmental justice (EJ) are 

contained in Executive Order #12898. Because the NSR program operates 

nation-wide and across all industry classifications, the Agency does not 

believe there is a disproportionate environmental justice effect in the NSR 

program. 

11 The definition for "small business" employed for all SIC categories in 

this analysis was any business employing fewer than 500 employees. 

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5 

5.1 

The Information Collected - Baseline, Methodology, and Management 

Determination of 

Baseline 

Tables 6-1, 2, and 3 in the current NSR ICR lists the activities, burden, 

and estimated costs of NSR activities required for sources, Permitting 

Authorities (RAs), and the EPA, respectively. These estimates form the 

baseline for this ICR. For convenience; Tables 5.1, 2, and 3, below, 

recreate the information for PSD sources (those affected by this ICR 

revision). 

Table 5.1 Baseline Annual Source Burden and Costs" from the Current ICR 

Activity 

1. Part C (PSD) 

A. 

B. 

C. 

D. 

E. 

F. 

Preparation and Planning 

Determination of Compliance Requirements 

Obtain guidance on Data Needs 

Preparation of BACT Engineering Analysis 

Data Collection and Analysis 

Air Quality Modeling 

Determination of Impact on Air Quality Related Values 

Post-construction Air Quality Monitoring 

Permit Application 

Preparation and Submittal of Permit Application 

Public Hearings 

Revisions to Permit 

Subtotal burden 

Direct cost for Pre-construction Air Quality Monitoring 

Total cost 

Units 

320 

320 

320 

320 

320 

320 

320 

320 

320 

34 

Hours 

per Unit 

170 

120 

85 

200 

100 

50 

50 

24 

40 

839 

Annual 

Hours 

54,400 

38,400 

27,200 

64,000 

32,000 

16,000 

16,000 

7,680 

12,800 

268,480 

Annual 

Cost 

$3,471 

$2,450 

$1,735 

$4,083 

$2,042 

$1,021 

$1,021 

$490 

$817 

$17,129 

$7,099 

$24,228 

a In thousands of 2000 dollars 

Table 5.2 Baseline Annual State and Local RA Respondent Burden and Cost" 

Activity 

I. PART C (PSD) 

A. Attend Pre-application Meetings 

B. Answer Respondent Questions 

C. Log In and Review Data Submissions 

D. Request Additional Information 

E. Analyze for and Provide Confidentiality Protection 

F. Prepare Completed Applications for Processing 

G. File and Transmit Copies 

H. Prepare Preliminary Determination 

I. Prepare Notices for and Attend Public Hearings 

J. Application Approval 

K. Notification of Applicant of RADetermination 

L. Submittal of Information on BACT / LAER to RBLC 

M. Total 

Units 

320 

320 

320 

320 

320 

320 

320 

320 

320 

320 

320 

320 

Hours 

Per Unit 

36 

20 

16 

8 

24 

32 

8 

24 

40 

40 

8 

16 

272 

Annual 

Hours 

11,520 

6,400 

5,120 

2,560 

7,680 

10,240 

2,560 

7,680 

12,800 

12,800 

2,560 

5,120 

87,040 

Annual 

Cost 

$477 

$265 

$212 

$106 

$318 

$424 

$106 

$318 

$530 

$530 

$106 

$212 

$3,607 

In thousands of 2000 dollars 

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According to the current ICR, the Agency expects 320 PSD applications 

per year, each requiring about 839 hours to complete, for a total of over 

268,000 hours. The ICR also estimates 590 nonattainment NSR permits 

per year, each requiring 557 hours, for a total of over 340,000 hours per 

year. The current ICR also predicts each minor source (56,500 total minor 

NSR sources) will require 40 hours to complete its NSR application 

requirements, for a total of 2,260,000 hours. 

Table 5.3 Baseline Annual Federal Burden and Cost" 

Activity 

1. PART C (PSD) 

A. Review and Verify Applicability Determination 

B. Review Control Technology Determination 

C. Evaluate Air Quality Monitoring 

D. Evaluate Alternative and Secondary Impact Analysis 

E. Evaluate Class 1 Area Analysis 

F. Administrative Tasks 

G. Total 

Units 

320 

320 

320 

320 

320 

320 

Hours 

Per Unit 

2 

3 

4 

2 

2 

1 

14 

Annual 

Hours 

640 

960 

1,280 

640 

640 

320 

4,480 

Annual 

Cost 

$21 

$31 

$41 

$21 

$21 

$10 

$144 

a In thousands of 2000 dollars. 

Section 182(c)(8) of the Clean Air Act states in extreme ozone 

nonattainment areas any increase is considered a modification, but the 

source can get "internal" offsets at a 1.3 to 1 ratio to avoid applying 

controls. Under this provision, affected sources in extreme ozone areas 

will have to seek out internal offsets for any modification that results in an 

increase in emissions. However, under this ICR revision, none of the 

states with Federally controlled programs have extreme nonattainment 

areas, so the net effect of the Section 182(c)(8) provision is zero. 

5.2 Collection 

Methodology 

and 

Management 

This section discusses the development of burden estimates and their 

conversion into costs, which are separated into burden costs and capital 

and O&M costs. According to the latest guidance for ICRs (EPA 1995), 

capital and O&M costs display the cost of any new capital equipment the 

source or RA may have to purchase solely for information collection, 

assimilation, and storage purposes. For example, if a source had to 

purchase a new mini-computer to store and manipulate data, that computer 

would be a cost of administration subject to reporting in the ICR. In 

addition, the latest guidance instructs the Agency to differentiate the 

burden associated with a source's labor and that which it hires through 

outside contractors. To the extent a source contracts out for administrative 

purposes (e.g., employing consultants to perform monitoring functions), 

the burden associated with those contracted tasks are not a burden to the 

source - but they still remain a cost. The reader should read this section 

with the following considerations in mind: 

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• The Agency believes the amount of time necessary to perform a task is 

independent of the origins of its labor. In other words, if a source 

would employ X hours of burden to fully perform a function, then a 

contractor hired by the source would also take X hours to perform that 

same task. Furthermore, the Agency assumes no economies or 

diseconomies of scale in that the linear combination of any amount of 

contractor and source effort will also sum to X. Therefore, the burden 

estimates in this ICR act as an accurate assessment of the total burden 

to affected sources and RAs, given the affected entity does not employ 

contracted labor. 

• For some burden categories, the Agency believes the hours assigned to 

them will be divided between the source and outside contractors. For 

these categories, the Agency established a composite cost per hour by 

developing a weighted average of the source and contractor wages, 

with the weight defined by the percentage of total effort each burden 

source applied. Consequently, the cost developed in this ICR should 

be interpreted as an upper bound on the actual cost of administration 

by the source or RA. The methodology for determining cost per hour 

can be found in greater detail in section 6.2, below. 

The owners and operators of new or modified stationary sources affected 

by the NSR regulations must submit construction permit applications to 

the RA, who, in turn, logs in the permit applications, stores applications in 

a central filing location, notifies the Federal Land Manager (FLM) of the 

permit, and provides a copy of the application (if applicable) to the FLM 

and transmits copies of each application to EPA. Upon permit approval, 

the RA submits control technology information to EPA's RBLC database. 

The RA reviews the permit and checks the quality of data submitted by the 

applicant on a case-by-case basis. The applicant will be required to 

submit information on how the data were obtained (e.g., indicate whether 

emissions data were obtained through the use of emissions factors or test 

data) and how the calculations were performed. The RA personnel will 

check data quality by reviewing test data and checking engineering 

calculations, and by reviewing control technology determinations for 

similar sources. The RBLC and other sources will be reviewed for 

information on control technology determinations made for sources 

similar to the sources included in the permit application. Confidential 

information submitted by the applicant will be handled by the permit 

reviewing authority's (RA's) confidential information handling 

procedures. The public will be provided the opportunity to review a 

permit application and other materials relevant to the RA's decision on 

issuing the permit, including FLM findings, by obtaining a copy from the 

permit reviewing authority or by attending the public hearing. The NSR 

regulations will not require information through any type of survey. 

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Table 6-2 lists the State and local agency burden and costs associated with 

the major NSR permitting rule, as modified by the proposed Reform 

changes of this analysis. As is the case with the respondents, State and 

local agencies who approve NSR permits will only have start-up costs for 

any given permit. Consequently, while the State or local agency will 

approve many permits each year, the annual burden for that function is 

simply equal to the burden found in any 1 year. 

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6 

6.1 

Estimating the Burden and Cost of the Collection 

Estimating The 

Number of 

Respondents 

To determine the number of potentially affected respondents for this 

rulemaking, the EPA began with the baseline data found in the February 

2001 (current) ICR, reproduced for convenience in this ICR revision as 

Tables 5.1, 5.2, and 5.3, above. From that baseline, the EPA made several 

adjustments to separate out those sources affected by this rulemaking (all 

major source NSR modifications) and those for this ICR update (Federally 

controlled areas). 

The universe of potentially affected sources in Table 5.1 includes both 

new construction and modifications to existing sources. Since this 

rulemaking deals exclusively with major NSR requirements for existing 

facilities, the Agency began with the 910 annual NSR permit 

determinations, subtracted out 20 percent for utilities (based upon 

information in the RBLC), leaving 728 non-utility permits eligible for 

consideration under this rulemaking. The Agency then estimated 

approximately two-thirds of the available NSR permits issued each year 

come from existing sources, divided between PSD and NSR permits 

according to the roughly 1:2 ratio of permits found in the current ICR. 

Therefore, this analysis assumes 485 permit determinations (162 PSD and 

323 nonattainment NSR) are made each year at existing non-utility 

sources. Apportioning these sources according to the distribution in the 

current ICR means there are 222 potentially affected PSD sources each 

year when this rulemaking is in full effect. During the period of time when 

this rulemaking only affects Federally controlled areas, this analysis 

assumes 38 percent (from the Operating Permits database analysis) of the 

overall values apply.12 Consequently, the results in this ICR revision are 

based upon 62 PSD non-utility sources and 85 PSD sources, including 

utilities. Table 6.1, below displays the distribution of sources assumed for 

this ICR analysis. 

For the number of respondent permitting authorities, this analysis uses the 

112 RA count used by other permitting ICRs for one-time tasks (e.g., SIP 

revision) and the appropriate source count for individual permit-related 

items (e.g., attending pre-application meetings with the source). There is 

only one Federal source listed in this ICR. 

12 The estimated 38% of all potentially affected sources includes more 

than just the sources found in the Agency's general estimate of the 

number of sources managed by the Federal government. In many cases 

where a State does not have an approved SIP, the Agency delegates 

authority for the state program back to the state. FOr this analysis, this 

delegation has been ignored and those affected sources are included 

herein. 

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Table 6.1 Estimated Number of Affected Respondents Per Year 

Without Utilities 

With Utilities 

When Fully Implemented 

162 

222 

Federally Controlled Areas 

62 

85 

6.2 Estimating 

Respondent 

Burden 

This rulemaking includes two types of changes to the existing NSR 

program - mandatory changes that affect all sources seeking a 

preconstruction permit, and voluntary changes that allow sources the 

opportunity to decide whether or not the alternative permitting 

requirements provide a net benefit to the source. For voluntary programs, 

all RAs must include their provisions within their SIPs and do not have 

the ability to refuse to include the voluntary program as a part of its NSR 

program (unless the RAcan make a showing that the program is, in fact, 

less stringent than its existing program). For sources deciding to opt into 

voluntary programs, the Agency asserts that, for any source that decides to 

opt into such a program the benefits from that change must outweigh the 

cost of that change. Under this assertion, "costs" and "benefits" include 

other than monetary measures and it is the implicit revealed preference of 

the source by its choice that determines whether or not the program is 

beneficial. Tables 6.2 through 6.8, below, display the expected number of 

affected sources and the change in burden and cost for each of the changes 

included in this rulemaking for all respondents. The reader should note the 

estimated number of sources discussed below are an order-of-magnitude 

assessment of the scope of each program. In that context. The reported 

number of affected sources should be considered a probable outcome 

within a reasonable range around the estimate and not an exact estimate. 

This section presents estimates of the number of potentially affected 

sources and the burden hours expected to be incurred at those sources 

subject to preconstruction permitting under PSD and nonattainment NSR 

regulations as set out in the Act and parts 51 and 52 of Title 40 of the 

Code of Federal Regulations. Applying the methodology established for 

economic analyses established by the Agency in The OAOPS Economic 

Resource Document '3 and The EPA Air Pollution Control Cost Manuall4. 

The burden estimates in this ICR reflect the expert judgement of EPA 

13 United States Environmental Protection Agency, April 1999, The 

OAQPS Economic Resource Document, 

http://www.epa.gov/ttn/ecas/econdata/6807-305.pdf 

14 United States Environmental Protection Agency, January 2002, The 

EPA Air Pollution Control Cost Manual, sixth edition, Daniel C. 

Mussatti, ed., EPA -452/B-020-001 

http://www.epa.gOv/ttn/catc/products.html#cccinfo 

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staff, contractors, and industry experts. All burden estimates represent the 

marginal cost of this rulemaking, based upon the baseline burden and 

costs described in the NSR program's February 14, 2001 ICR renewal.I5 

While the overall effect of this rulemaking is a relaxation of the burden 

currently imposed on sources, there are several mitigating factors that 

make that result not apparent in the final analysis. First of all, while 

eventually this rulemaking will apply to all sources in attainment and 

nonattainment areas, in the three years immediately following the 

promulgation of this rulemaking, the Agency anticipates the following 

Federally controlled areas will be affected immediately by the changes 

discussed above: 

Federal Permitting Authorities: including Regional and Office of Air 

and Radiation environmental officers 

States where the management of their program has been delegated 

back to the State 

Federally controlled areas such as outer continental shelf drilling 

platforms, Tribal lands that have delegated Title I authority back to the 

Federal government, and Federal territories and holdings (e.g., 

American Samoa) 

Sources of air pollution within attainment areas in the affected States, 

Tribal lands, and other Federally controlled areas. 

6.2.1 Baseline With this rulemaking, the EPA amends the NSR rules to require States to 

Determination

 us e a ne w test a s a n a lternat 'v e t 0 tne current "actual-to-potential" test for 

determining the applicability of the NSR requirements for facilities 

seeking to make modifications at an existing major stationary source. As 

described in greater detail in the Preamble to this rulemaking, the 

following are key features of the new methodology: 

• New methodology applies to any existing emissions unit at a major 

stationary source undergoing a physical or operational change; 

• Sources other than electric utility steam generating units will 

determine pre-change (baseline) actual emissions by calculating an 

average annual emissions rate, from any 24-consecutive months during 

the 10-year period (2 in 10) preceding the change;16 

Sources will project post-change (future) actual emissions to reflect 

the highest projected annual increase in actual emissions that results 

from the proposed change, i.e., excluding increases that the existing 

15 United States Environmental Protection Agency, February 14, 2002, 

Information Collection Request for 40 CFR part 51 and 52 Prevention 

of Significant Deterioration and Nonattainment New Source Review, 

OMB Control No. 2060-0003, EPA No. 1230.09 

16 This rate may need to be adjusted to reflect current emissions factors. 

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emissions unit could have accommodated during the baseline period 

and that is also unrelated to the particular project.; and 

• Sources must maintain sufficient emissions information for at least 5 

years following physical or operational change to demonstrate that 

post-change emissions do not result in a modification. 

EPA is also codifying the "2-years in 5" presumption for calculating the 

representative baseline actual emissions already in use by these units. 

Therefore, this part of the analysis uses 85 potentially affected non-utility 

sources, as described in section 6.1, above. Of these, the Agency 

anticipates no more than 5 percent (3 PSD and 6 NSR) - and probably 

fewer - will be able to select a new two-year baseline period that will 

allow them to avoid major NSR. For this analysis, only the three PSD 

sources can be affected.I7 

For all non-utility sources permitted annually, the new rules require each 

source to keep a record of annual emissions but does not require CEMS or 

any additional monitoring equipment. Although this recordkeeping is a 

new burden under the NSR program, it is not a new burden to sources 

because most sources must perform similar monitoring under the 

requirements for title V and for emission inventory purposes. Only for a 

very few instances will this new requirement require a source to undertake 

new monitoring. The only "new" burden for this recordkeeping 

component will be for the source to keep the records in a specific and 

accessible format and to report deviations above a certain level. Also, each 

source will have to maintain records for at least five years to demonstrate 

that the actual emission projections have not been exceeded. The Agency 

anticipates these two requirements will add about two hours per week to 

the burden for each affected source - about an extra 100 hours per year. 

Table 6.2 summarizes the expected effect of the change in baseline 

determination portion of this rulemaking. 

Table 6.2 Estimated Effect of new Baseline Determination 

Activitv 

Reduction in Number of PSD sources from "2 in 10" change 

RecordkeeDinq and ReDortinq 

TOTAL EXPECTED EFFECT 

Units 

3 

3 

3 

Hours 

per Unit 

(839) 

100 

(739) 

Annual 

Hours 

12,517) 

300 

(2.217) 

Annual Cost 

a 

(§188,775) 

$12,500 

($168,275) 

a Changes are in 2002 dollars 

17 Some sources may also experience a lower baseline through other parts 

of this rulemaking, but for simplification purposes, that scenario was 

not considered. 

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6.2.2 Actual-ToProjected-Actual 

Determination 

As described in section I.C.I of the preamble, the Agency adopted an 

actual-to-projected-actual methodology for determining baseline, 

combined with a revised process to determine baseline emissions to 

identify when sources plan to make a modification subject to NSR. This 

methodology allows certain emissions increases to be excluded from the 

calculation if such increases could have been accommodated by the 

emissions unit before the change and are unrelated to the change. Any 

other increase in emissions will not trigger NSR. Under our current NSR 

program, a source can make physical changes or changes in the method of 

operation without triggering major NSR applicability, provided the 

changes do not result in either a significant emissions increase from a 

project or a significant net emissions increase from the major stationary 

source. The Agency interpreted this requirement to allow unrelated 

changes that, standing alone, do not result in significant emissions 

increases and to allow such changes to occur without considering whether 

other contemporaneous emissions increases render the change significant. 

Although this new emissions test is a change from the current "actual-topotential" test, the difference is that sources will not have to obtain an 

enforceable permit restriction on their post-change emissions projections. 

Under the "actual-to-potential" test many sources relied on a projection of 

post-change actual emissions by obtained enforceable restrictions through 

a minor NSR permitting action. This restriction effectively made the 

potential-to-emit of the source equal to this post-change projection. 

Under the new test, we are not requiring sources to obtain enforceable 

restrictions to use the post-change emissions projection. 

Of the 667 annual permit determinations made for existing sources, the 

Agency anticipates the actual-to-projected-actual determination will allow 

about 10 percent (67 sources - 8 PSD sources in Federally controlled 

areas) to avoid major NSR, divided between PSD and NSR determinations 

according to the distribution in the February 2001 ICR. 

Table 6.3 Estimated Effect of Actual-To-Projected-Actual Determination 

Activity 

Reduction in Number of PSD sources 

Units 

8 

Hours 

oer Unit 

839 

Annual 

Hours 

(6.712) 

Annual Cost' 

($503,400) 

a Changes are in 2002 dollars 

6.2.3 Plant-wide 

Applicability 

Limits (PALs) 

A PAL is a voluntary program that functions much like the old "Bubble 

Policy" that let sources manage facility-wide emissions. The added 

flexibility provided under a PAL strikes an important balance between the 

source's need to respond rapidly to market changes and the Agency's 

mission to protect the environment. The PAL provisions of this 

rulemaking are based on plant-wide actual emissions such that if a source 

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maintains its emissions below a plant-wide actual emission cap, (called an 

"actuals" PAL), the program lets the source make modifications to its 

facility without triggering major NSR. In return for this flexibility, the 

source must monitor emissions from all of its emission units under the 

PAL. The level of monitoring will be different under a PAL from that 

required elsewhere in the Act. Other programs include monitoring 

requirements to show sources do not exceed a particular value, which can 

be done by showing it operated within a certain range (parametric 

monitoring). Under PALs, each source must quantify its emissions. The 

facility's existing monitoring systems will most likely be used, but only 

after it is customized to attain a higher level of performance; and some 

sources will have to purchase monitoring equipment that they may not 

currently have. However, the Agency expects the cost of new monitors 

would preclude most sources from choosing PALs exemption and that 

only sources with existing monitoring systems will choose to use the 

PALs program. Consequently, the Agency also believes the additional cost 

of monitoring for these sources will be minimal - about 100 hours a year. 

The PAL program applies to both PSD and nonattainment NSR 

permitting, but for this ICR revision, it only applies to PSD sources in 

Federally managed areas. From the database analysis supplied to the EPA 

by its contractors from the RBLC, EPA determined there were 52 sources 

of air pollution that applied for multiple NSR permits between 1992 and 

2002, or, on average, two sources per year. Among all of the sources 

identified as having more than one permit within a ten-year period, seven 

had three permits, six had four, and two had five major NSR permits. The 

remaining 37 all had only two permits within ten years. Therefore the 

Agency determined the number of avoided permits available within a tenyear period for any given source would most likely be one. If all of those 

sources were to be in Federally controlled areas, this analysis would have 

an upper bound on its estimated effect. Consequently, for this ICR 

revision, EPA assumed one PSD permit could be avoided each year during 

the life of this ICR. 

This analysis focuses on the number of PSD permits avoided by sources 

that take PALs, and should not be equated with the number of sources that 

will actually apply for PAL permits. The avoidance of major source 

permits is just one of the reasons a source might take a PAL - simplified 

applicability and netting are examples of others, even if the underlying 

changes would not have triggered a major source permit. Further, not 

every source with a PAL is will make an otherwise major source permit 

triggering change every year. The number of sources that will eventually 

take PALs is likely higher than the estimate made here for the number of 

permits avoided at sources covered by this analysis. However, it it the 

latter figure that is more appropriate for use in developing the burden 

estimate used in this ICR. 

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Table 6.4 Estimated Effect of Plant-wide Applicability Limits 

Activity 

Reduction in Number of PSD sources 

Increase in Monitoring Requirements at Sources Opting into 

PALs 

TOTAL EXPECTED CHANGE 

Units 

1 

1 

Hours 

per Unit 

(§39} 

100 

(739) 

Annual 

Hours 

(839} 

100 

(739) 

Annual Cost" 

($62^251 

$7,500 

($55,225) 

a Current ICR costs are in thousands of 2001 dollars, changes are in thousands of 2002 dollars 

6.2.4 Clean Units Test This rulemaking includes a new type of applicability test for emission 

units that are designated as Clean Units (CU). Under this test, the Agency 

explicitly recognizes that the rate of technological change is not smooth 

and continuous. Instead, once a new technology has been introduced for 

pollution control purposes, it may take a significant number of years for a 

new control technology to be developed that would replace that BACT or 

LAER device.18 Consequently, when a source undertakes a major NSR 

review and installs BACT or LAER, that source (now deemed a "Clean 

Unit") may make a changes over a long period of time that could trigger 

major NSR under a strict interpretation of the regulation, but would not 

result in a control technology change that would provide more than de 

minimis improvements in the source's abatement efficiency. The CU 

applicability test presumes the prior installation of BACT or LAER at a 

source is sufficient to exempt future modifications at the source from 

additional major NSR review - so long as the source does not exceed its 

permitted emissions level. Emissions units that have not been through 

major NSR may still qualify for the Clean Unit designation if they 

demonstrate that the control is comparable to BACT or LAER. 

This CU applicability test also allows minor NSR and voluntary control 

installations to qualify for future exemptions, thereby providing incentives 

for sources to install state-of-the-art controls (beyond what may be 

deemed BACT or LAER) in anticipation of the need for future 

modifications that would trigger major NSR. This new applicability test 

therefore protects air quality, creates incentives for sources to install stateof-the-art controls, provides flexibility for sources, and promotes 

administrative efficiency. 

The determination of the number of potentially affected sources for the 

Clean Units Test follows the same methodology as that performed for the 

Plant-wide Applicability Test, above. Consequently, while as many as five 

sources beyond those already performing CUT-like practices after 

18 For instance, the technology governing the removal of S02 from 

combustion flue gas streams has remained relatively unchanged (except 

for minor innovations to improve operations) since its introduction to 

the pollution control community in the early 1980's. 

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receiving a major source permit may be able to opt into the Clean Units 

Test program under the full coverage of this rulemaking in the short term, 

while only Federally controlled areas are affected, the Agency anticipates 

only one PSD source may be able to opt into the program during the 

period of time covered by this ICR revision. 

Table 6.5 Estimated Effect of Clean Units Test 

Activity 

Reduction in Number of PSD sources 

Units 

1 

Hours 

per Unit 

839 

Annual 

Hours 

(839) 

Annual Cost " 

($62,925) 

a Current ICR costs are in thousands of 2001 dollars, changes are in thousands of 2002 dollars 

6.2.5 Pollution 

Control Projects 

(PCPs) 

EPA developed a comprehensive list of pollution control projects (PCPs) 

believed to be environmentally beneficial when applied to most industrial 

processes. To provide incentives to sources for the installation of these 

technologies, EPA has determined that sources installing a listed PCP 

would qualify for an exclusion from major NSR if the installation does not 

result in a negative air quality impact (e.g., a violation of a NAAQS). The 

Agency's determination of what presumptively qualifies as a PCP is 

limited to those technologies listed in this rulemaking, but the an RA may 

allow other projects to qualify use on a case-by-case permitting process. 

Thus, the PCP Exclusion allows sources to install emissions controls that 

are known to be environmentally beneficial without triggering major NSR 

for small, collateral pollutant increases. These provisions thus offer 

flexibility while improving air quality. 

Under the provisions of the PCP exclusion, sources may undertake major 

NSR actions that have a significant emissions increase but still do not 

have to meet the existing NSR requirements for additional control. 

However, the source must still obtain offsets for the significant increase. 

Since the offset requirement is a provision of the current NSR rules, it 

produces no net change in the burden or cost to the source and is not 

considered a part of the burden and cost of this rulemaking. 

There are no empirical foundations upon which to base an estimate of the 

number of potentially affected sources for this element of the rulemaking, 

since the determination of a specific number of participating entities 

would involve the derivation of a counterfactual value. Consequently, 

based upon informal polling of EPA regional offices and for the purposes 

of this analysis, EPA expects one PSD and one NSR permitted source will 

participate in the PCP program each year during the life of this ICR 

revision. Currently, a number of sources are already participating in the 

PCP program as part of the on-going policy surrounding major source 

permitting. However, the Agency believes this formalization of the PCP 

process will provide greater certainty to sources and offer a streamlined 

methodology that will be attractive to more sources and types of sources 

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than are currently participating. These are the sources addressed in this 

ICR revision and that will be addressed in toto during the next NSR ICR 

update. 

Table 6.6 Estimated Effect of Pollution Control Project Exclusion 

Activity 

Reduction in Number of PSD sources 

Units 

1 

Hours 

per Unit 

839 

Annual 

Hours 

(839) 

Annual Cost' 

($62,925) 

a Current ICR costs are in thousands of 2001 dollars, changes are in thousands of 2002 dollars 

6.3 Estimating 

Reviewing Authority Burden 

The current rulemaking results in an unambiguous increase in the burden 

imposed upon RAs, from EPA requirements that any changes in the 

permitting process to be included in the state's SIP, then submitted for 

approval to the EPA. Because the changes needed for updating SIPs are 

small and the state requirements for SIP development differ from state to 

state, the Agency assumed it would take no more than eighty hours for 

each reviewing authority to fully incorporate this rulemaking into its plan. 

This assumption includes legislative review, public comment, and all legal 

and legislative processes necessary for all of the above components. Table 

6.7, below, displays the aggregate effect of this rulemaking on all RAs. 

Table 6.7 Estimated Reviewing Authority Burden and Costa 

Activity 

TOTAL EXPECTED CHANGE 

Units 

112 

Hours 

per RA 

80 

Annual 

Hours 

8.960 

Annual Cost * 

$331,520 

a Current ICR costs are in thousands of 2001 dollars, changes are in thousands of 2002 dollars 

6.4 Estimating 

Federal Burden 

The Federal change in burden resulting from these changes will be to 

review state SIPs to verify their changes fully meet the requirements of the 

program. Due to the nature of the changes needed, the Agency expects 

that, when the rule is fully in effect, that each SIP will require about ten 

hours of review. However, for the time period of this rulemaking, the 

Federal burden is limited to only those tasks it would perform in the 

maintenance of its oversight function in Federally controlled areas. In 

other words, the EPA assumes there is no additional Federal burden or 

cost derived from the short term effects of this rulemaking. 

Table 6.8 Estimated Federal Burden and Costa 

Activity 

TOTAL EXPECTED CHANGE 

Units 

1 

Hours 

0 

Annual 

Hours 

0 

Annual Cost' 

$0 

a Current ICR costs are in thousands of 2001 dollars, changes are in thousands of 2002 dollars 

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6.5 Estimating 

Respondent 

Costs 

Tables 6.2 through 6.8, above, include the expected cost of the burden 

associated with each of the changes in the major source NSR program. The 

cost to respondents for ICR purposes generally falls within two categories: 

the burden cost of technical and administrative personnel, and the capital 

cost of collection-related equipment. For those elements of this rulemaking 

that constitute opportunities for reductions in source burden, there can be 

no potential change in the capital costs associated with this ICR update. 

When the Agency anticipates an increase in burden to sources, their 

additional capital costs are considered below in this section. Source burden 

costs are typically wage rates paid to employees and costs incurred by the 

use of consultant labor. For this analysis, the Agency assessed source 

burden as only internally generated wages, established at the administrative 

rate of $75 per hour (fully loaded) established in the August 2001 ICR for 

the Compliance Monitoring Rule (EPA Number 1663.03). 

6.6 Estimating 

Agency 

Costs 

During the development of the 1997 ICR for the part 71 Federal Operating 

Permit Regulations, the Agency also determined the appropriate wage rates 

to apply to Federal burden categories. For this ICR, the Agency employed 

the same methodology to determine 2002 Federal and state burden costs 

and established the appropriate rate at $37 per hour. Table 6.9 displays the 

calculation of this rate. 

Table 6.9 Determination of Federal and State Wage Rates 

Annual Salary of Permit Staff, GS 11 Step 3 (FY 02 Schedule)* 

Annual Cost of Supervisory Staff, GS 13 Step 3 (FY 02 Schedule)* 

Factor (1/11) 

Annual Cost of Support Staff, GS 6 Step 6 (FY 02 Schedule)* 

Factor (1/8) 

Annual Applicable Salary of Permit Staff 

Benefits (at 16%) 

Sick Leave / Vacation (at 10%) 

General Overhead 

Total Cost Per FTE 

Total Hourly Cost (Total Per FTE divided by 2,080 hours per year) 

$63,369.00 

0.09 

$29,569.00 

0.13 

r 

$44,462.00 

$5,703.21 

$3,696.13 

$53,861.34 

$8,617.81 

$5,386.13 

$17,413.37 

$85,278.65 

$37.12 

http://www.govexec.com/pay/02BS.hmi. April 11, 2002 

6.7 Estimating Costs The first three years of this rulemaking have a limited affect on sources, 

since it will take several years for Permitting Authorities to modify their 

SIPs and have them approved by the EPA. During this period, only 

Federally controlled areas will contain sources affected by this rulemaking. 

Those areas can be found listed in Section 4.1 of this ICR revision. During 

the period covered by this ICR revision, this rulemaking will produce a 

minor decrease in source burden (11,346 hours for all affected sources) 

hours and cost ($648,450 overall, or about $46,318 per affected source). 

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This rulemaking will also increase the burden (8,960 hours) and cost 

($331,520 overall, or about $2,960 per entity) for Permitting Authorities. 

Since the Agency already has oversight authority over the affected sources 

in this ICR revision, the EPA anticipates no change to its own burden and 

cost from this rulemaking over the period of time covered by this revision. 

Table 6.10, below, displays the change in annual burden and costs for 

sources, Permitting Authorities, and the Federal government, respectively. 

In each table, the second column lists the number of affected units, based 

upon the methodologies and assumptions discussed above in each section. 

The third column displays the change in hours per affected unit for each 

program element, with negative numbers indicating a reduction in burden, 

zero indicating no change, and a positive value indicating an increased 

burden. The reader can re-create the annual hours for each burden category 

by multiplying the number of affected units by the hours per unit. Column 

four displays the total cost of the expected burden, and column five 

displays the average cost, across only affected sources, for each element of 

the rulemaking. The Source Total row at the bottom of Table 6.10's source 

section displays the average cost to respondents as across all 910 annually 

affected sources. For permitting authorities, the burden categories listed are 

one-time burden categories that each source must incur, whether or not 

they have a Federally imposed program in place. Consequently, the last 

column is one third of the product of the number of annual hours for each 

burden category times the Federal and state wage rate. 

Table 6.10 Aggregate Change in Burden and Costa for this Rulemaking 

Regulatory Change 

SOURCES 

Baseline Determination 

Avoided Major Source NSR 

New Monitoring Requirements 

Actual-to-projected-actual Determination 

Plant-wide Applicability Limits (PALs) 

Avoided Major Source NSR 

New Monitoring Requirements 

Clean Units Test 

Pollution Control Projects 

Source Total 

RAs 

FEDERAL 

Number of 

Affected Entities 

3 

3 

8 

1 

1 

1 

1 

14 

112 

1 

Annual Burden 

Hours 

300 

£112} 

<839) 

100 

1839} 

(839) 

f 11.346) 

8.960 

0 

Annualized 

Cost 

$225,000 

($503,400) 

.(562,9251 

$7,500 

($62^925). 

($62,925) 

(S648.450) 

$331,520 

$0 

Average Cost per 

Entity 

(162,925]! 

$7,500 

($62,925) 

M2£25). 

$7,500 

1162^925). 

($62,925) 

($46,318) 

$2,960 

$0 

a In thousands of 2002 dollars. 

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6.8 Reasons For Through years of negotiation, public meetings, and draft revisions, the 

Chanqe In Burden Information Transfer and Program Integration Division has strived to 

streamline and simplify the reporting and recordkeeping requirements for 

the preconstruction permit proceed mandated by the Act for sources of 

criteria and hazardous air pollutants. This rulemaking represents the 

culmination of many parts of that process. Because the goal of this effort 

was to reduce burden and costs, the reasons for the change in burden 

displayed above the tables above is self evident. 

6.9 Burden Burden means the total time, effort, or financial resources expended by 

Statement persons to generate, maintain, retain, or disclose or provide information to 

or for a Federal agency. This includes the time needed to review 

instructions; develop, acquire, install, and utilize technology and systems 

for the purposes of collecting, validating, and verifying information, 

processing and maintaining information, and disclosing and providing 

information; adjust the existing ways to comply with any previously 

applicable instructions and requirements; train personnel to be able to 

respond to a collection of information; search data sources; complete and 

review the collection of information; and transmit or otherwise disclose the 

information. The Agency may not conduct or sponsor, and a person is not 

required to respond to, a collection of information unless it displays a 

currently valid OMB control number. The OMB control numbers for 

EPA's regulations are listed in 40 CFR Part 9 and 48 CFR Chapter 15. 

Send comments on the Agency's need for this information, the accuracy of 

the provided burden estimates, and any suggested methods for minimizing 

respondent burden, including through the use of automated collection 

techniques to the Director, OPPE Regulatory Information Division, U.S. 

Environmental Protection Agency (2137), 401 M St. S.W., Washington 

D.C. 20460; and to the Office of Information and Regulatory Affairs, 

Office of Management and Budget, 725 17th Street, N.W., Washington 

D.C. 20503, Attention: Desk Officer for EPA. Include the EPA ICR 

number and OMB control number in any correspondence. 

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