**DRAFT INFORMATION COLLECTION REQUEST RENEWAL**  **FOR THE NO**  **x BUDGET TRADING PROGRAM TO REDUCE THE REGIONAL**  **TRANSPORT OF OZONE SUPPORTING STATEMENT**  EPA I CR No. 1857.0 6 , OMB Control No. 2060

- 0445 **1. IDENTIFICATION OF THE INFORMATION COLLECTION**  **1 (a**  **) Backgrou nd**  This Information Collection Request (ICR) addresses the labor hour burden and costs of State reporting requirements contained in the U.S. Environmental Protection Agency ' s (EPA) rule to control regional transport of ozone season NO x emissions contributing to exceedances of the Ozone National Ambient Air Quality Standard (NAAQS) in the eastern United States which was published on October 27, 1998 (63 FR 57350). This rule is known informally as the NO x SIP Call . These provisions are incorporated in 40 CFR 51.121 and 51.122. The reporting requirements of this rule under §51.122 are imposed directl y on the States, not on industry

. However, in order to meet the requirements of this rule, States will of necessity have to impose requirements on industry fo r installation of continuous emission monitors and for recordkeeping and reporting. Therefore, there will be an indirect record keeping and reporting burden on industry as a result of this rule , and this IC R estimates th os e burden hours and costs incurred by industry

. The focus of this ICR is the monitoring and reporting burden for S tates and sources that remain affected by

the NO x SIP Call , and that are not subject to subsequent rulemaking and addressed in other ICRs

. The rule originall y encouraged an emissions trading program for fossil fuel

- fired NO x sources serving electrical generators (EGUs) with a nameplate capacity greater than 25 MW or boilers, combustion turbines , or combined cycle units with maximum design heat input greater than 250 mm BTU/hr. Under the SIP call, many S tates elected to meet much of the required emission reductions through the federall y administered emissions trading program. Most of the units that originall y participated in th at NO x Budget Trading Program (NBP) now particip ate in an expanded emissions trading program established in conjunction with the Clean Air Interstate Rule ( CAIR) , and the burdens and costs for those units is covered under EPA ICR #2152.04 , OMB Control Number 2060

- 0570

. The only units still subject to this I CR are certain non - EGUs that participated in the NBP but are not participating in CAIR. In addition to the NOX SIP Call burdens, this ICR retains legacy th e paperwork burden and costs that would be included if the trading program was reinstated. These costs are related to : (1) transferring and tracking allowances; (2) the allocation of allowances to affected units; (3) permitting; (4) annual year end compliance certification; and (5) meeting the monitoring and reporting requirements of the program. These obsolete historical emissions trading burden sections are identified as “Not Active” and represented in the document as tables with the respondent numbers and burden hours listed but calculated as zero. EPA has ongoing rulemaking related to CAIR court cases (most recently , the December 23, 2008 DC Circuit Court of Appeals case No. 05

- 1244, which remanded the previous decision vacating CAIR). As aresult , the Agency may , at some future time, reinstitute the NBP. For example, this might happen if both the CAIR and CAIR replacement rules were vacated by the Court. As part of the NOx SIP Call, States are required to report certain data to EPA on an annual or triennial basis. However, both the AERR and CAIR include similar reporting requirements, and all State burdens associated with this ty pe of reporting are now addressed in the either the AERR and CAIR ICR ’s . Thus, the only burdens and costs addressed in this I CR are for the non

- trading units discussed above in this section.
**1 (b**  **) Information to b**  **e Collected** To meet the emissions monitoring recordkeeping and reporting requirements, the former NBP trading units are required to : (1) submit a monitoring plan and certification of monitors ; (2) record hourly

pollutant and flow monitor data; and ( 3) submit electronic quarterl y reports of their emissions data to EPA. The respondent reporting burden for the NO x SI P Call collection of information is estimated to be 57,586 hours each ye ar for the ye ars 2010 through 2012. The burden to EPA is estimated to be 848 hours i n each ye ar for the ye ars 2010 through 2012. **Emissions Trading Program (Not Active)** As discussed in Section 1(a), background information related to NBP allowance trading, are retained in this I CR in order to account for the costs of ongoing trading programs (now regulated under CAIR) if needed in the future . The ability to buy and sell (or transfer) allowances provides substantial economic benefits, by encouraging the greatest emissions reductions where costs of reductions are low est. This concept of allowance transfers cannot be implemented, however, unless regulations governing emissions monitoring and permitting of sources are in place as well. To ensure compliance with the emissions reduction requirements and to provide the r egion wide consistency needed to foster the allowance market, the designated representative of the owners and operators of each source with affected units is required to obtain an operating permit for the affected source and to certify that an approved emi ssions monitoring sy stem has been installed and is properl y operated at each affected unit's source of emissions. **Allowance Transfers (Not Active)** Participants in the allowance transfer s ys tem have two options for submitting transfers: submit electroni cally

using the internet to record their own allowance transfers, either by entering the data on screen or by submitting an XMLfile; or complete a paper form and send it the Agency . Participants in the transfer s ys tem that are not affected sources under Title IV are also required to file a onetime account information application using a paper form to establish an account in the Allowance Tracking S ys tem (ATS). As part of the annual compliance determination process, designated representatives have the option of submitting an allowance deduction form to identify specific serial numbered allowances to be deducted for annual compliance.**Emissions Monitoring**

To meet the emissions monitoring record

- keeping and reporting requirements, affected units are requ ired to: (1) submit a monitoring plan and certification of monitors; (2) record hourly pollutant and flow monitor data; and (3) submit electronic quarterl y reports of their emissions data to EPA. Operators of new electric generating units of 25 megawatts (MW) capacity or less may

receive a CEMS exception if they certify their use of very

- low

- sulfur fuel. **Submissions Purposes and Procedures (Not Active)**  Allowance transfer notifications may be submitted to EPA electronicall y or on paper. Emissions reports must be submitted electronically. The allowance transfer submittal is used to record allowance transfers for compliance purposes and to track the disposition of all allowances in the s ys tem. The designated representative certification, which desi gnates a responsible official through whom the owners and operators of each affected source and each affected unit can trade allowances and obtain and maintain permits, serves to remove EPA from involvement in disputes between owners and operators of affec ted units. (i ) Capital/Start

- up Costs While many

sources have already

installed necessary

emissions monitoring equipment due to requirements under other regulations, some sources will need to either install new monitors or upgrade existing monitors. Capital costs also usually include the cost of initial certification of new or upgraded monitors as part of start

- up costs. (ii) Emissions Monitoring Emissions monitoring and reporting is the foundation upon which the allowance trading sy stem is based . EPA will use the data contained in the reports to verify actual emissions. Without accurate monitoring and reporting of emissions, the integrity of the allowance s ys tem would be undermined, and there would be no assurance that emissions had been reduce d. To meet the emissions monitoring, recordkeeping and reporting requirements, affected units are required to: (1) submit a monitoring plan and certification reports for each monitoring sy stem; (2) record hourl y emissions data; and (3) submit reports of their emissions data to EPA. (iii) Year

- end Compliance Certifications (Not Active) Each source is required to submit an annual statement providing information on which allowances are to be deducted and certifying that the unit is in compliance with emi ssion limitations and monitoring and reporting requirements. **1 (c**  **)** Terms **of Clearance** Terms of Clearan ce for the previous ICR renewal: None.**2 .**  **NEED FOR AND USE OF THE COLLECTION**

This section describes EPA ' s need for the information collections described above and the legal authority for conducting collections. The users of collected information are also described.
**2 (a**  **) Need /Authority for t**  **he Collection** The State reporting requirements included in the NO x SIP Call are necessary for EPA to carry out properl y its evaluation of each State ' s compliance with its ozone season NO x emissions budget. The legal authority for the reporting requirements resides in Sections 110(a) and 301(a) of the Clean Air Act. Specificall y, the requirement in Section 110(a)( 2)(D) that SIPs include
" adequate provisions " to mitigate certain transport effects on other States implicitly authorizes emissions inventory

reporting to EPA, as needed and appropriate to verify that a State is in fact meeting its NO x budget. Section 110 (a)(2)(F) provides additional authority for requiring that SIP call submissions include provisions for emissions reporting by sources to a State, correlation of source information by

the State, and steps by

the State to make the correlated information avai lable to the public. Section 110(a)(2)(K), in turn, requires a State to submit to EPA as requested data related to modeling the effect of NO x and other emissions on ambient air quality

. The reported emissions inventory data will be used by

EPA in air qua lity

modeling to assess the effectiveness of the transport rulemaking ' s regional strategy . Finall y, Section 301(a) grants EPA broad authority to prescribe such regulations as are necessary to carry out its functions under the Clean Air Act.
**2 (b**  **) Practica l**  **Utility/Users of the Data** The EPA believes it is essential that compliance with the regional control strategy be verified. Tracking emissions is the principal mechanism to ensure compliance with the budget and to assure the downwind affected States a nd EPA that the ozone transport problem is being mitigated. If tracking and periodic reports indicate that a State is not implementing all of its NO x control measures or is off track to meet its statewide budget, EPA will work with the State to determin e the reasons for noncompliance and what course of remedial action is needed. The EPA will expect the State to submit a plan showing what steps it will take to correct the problems. Noncompliance with the NO x transport SIP may lead EPA to make a finding of failure to implement the SIP and potentiall y to implement sanctions, if the State does not take corrective action within a specified time period. **Emissions Trading Program (Not active)** ( i ) Year

- end Compliance Certification (Not Active) This inform ation will be used by EPA to determine annual compliance and to verify that the monitoring plan for the unit continues to be accurate. ( ii ) Allowance Transfers and Tracking (Not Active)In formation collected on allowance transfers would be used b y EPA or its designated

agent to track allowances for the purpose of determining compliance with the NO x Trading Program. Information on allowance transfers would also be used b y participants in the allowance market and the public to evaluate the activities of affected sources and b y EPA for program evaluation. Together, the allowance trading s ys tem, operating permits, and emissions data would help to provide the accountability to allow the NO x Trading Program to function without more stringent command and control approaches. The information collected by the industry

sources subject to this I CR provide necessary input data to the State emission inventory tracking for regional control strategy compliance. **3. NONDUPLICATION, CONSULTATIONS, AND OTHER COLLECTI**  **ON CRITERIA** This section describes : (1) efforts by EPA to learn whether the information requested is available from other sources; (2) consultations with respondents and data users to plan collections, monitor their usefulness, and minimize the collecti on burden; (3) effec ts of less frequent collections; and (4) justification for deviations from OMB ' s general guidelines. **3 (a**  **) Nonduplication** To minimize the reporting burden on State agencies, the reporting requirements for 40 CFR 51.122 are based on exi sting annual and periodic emission inventory reporting requirements as much as possible. In large part, the emission inventory requirements under the NOx SIP Call are now met through the comparable requirements associated with CAIR, and the direct State b urdens associated with inventory reporting for the regional control program is now included in the CAIR ICR. The onl y burdens remaining under this I CR reflect emissions reporting for sources not covered under CAIR that are part of the SIP Call control str ategy

. Almost all information requested from respondents under this I CR renewal is not available from other sources. Where EPA needs information that has already been submitted, EPA is simply

requiring a photocopy

of the prior submittal or the retrans mission of stored electronic data. **3 (b**  **) Public Notice Required Prior to ICR Submission to OMB**  For the renewal ICR, a public notice was published in the Federal Register on March 25, 2010 on availability

of the draft supporting statement for the ICR r e newal. A 60 day comment period for public comments was provided in the notice. EPA received no comments in response to the public notice that was published in the Federal Register (see Docket ID No. EPA

- HQ

OAR

- 2006

- 0947 ). **3 (c**  **) Consultations** EPA conta cted via telephone three affected sources for comment on the respondent costs/burdens detailed in this I CR renewal. Specifically , EPA contacted Spring O’Mara with the Conoco Philips Trainer Refinery at 610

- 364

- 8058, Jennifer Marshall with the Tate and LyleFacility at 217

- 421

- 2620, and Catherine Lanter with the Conoco Philips Wood River Refinery at 618

- 255

- 2505. Spring O’Mara and Jennifer Marshall responded and were provided a copy of the ICR supporting statement for review. Neither Jennifer Marshall no r Spring O’Mara had an y comments regarding the costs/burdens detailed in this I CR renewal. No response was received from Catherine Lanter. Additionally , EPA held numerous consultations during initial development of the NOx SIP Call, during development of CAIR, and during the ongoing development of a replacement rule for CAIR. The reduced burdens accounted for under this renewal ICR reflect that most of the burden under the NOx SIP Call is now addressed under CAIR (or its replacement rule in the future)

. For the initial rule development, on January 13, 1998, EPA held a one

- day pre - proposal workshop with the States to discuss tracking issues. The objective of the workshop was to determine what type and frequency of inventory

reporting is feasible for th e different source sectors (power generating sources, other point sources, area sources, nonroad mobile, and highway mobile sources), to identify key reporting issues related to each sector, and to develop recommendations on reporting requirements to ensure compliance with the NO x budgets. The goal was to share information and ideas rather than to reach consensus. A summary of the meeting is contained in the docket (docket no. A

- 96

- 56, item V

- B

- 18) for the NO x SI P Call rulemaking. The reporting requireme nts included in 40 CFR 51.122 are based, in part, on the suggestions of participants in the workshop. The recordkeeping and reporting requirements in §51.122 were included in the supplemental proposal (63 FR 25902, May 11, 1998) on which public comments were solicited. Comments received were reviewed and where appropriate were incorporated into the rule requirements as currently given in 40 CFR 51.122. Finally , as part of updating the ICR for the Acid Rain Program (Part 75) monitoring requirements, EPA contacted various affected parties to gather information on CEM capital costs, CEM operation and maintenance costs, fuel meter capital costs, and CEM/fuelmeter testing costs. That information has been used in this I CR where appropriate. **3 (d**  **) Effects of**  **Less Frequent Collection** If this information collection were not carried out annually for sources being controlled to meet the NO x budgets, EPA would not be able to verify that NO x emission reductions necessary to meet each State ' s NO x emission budget w ere being achieved. Quarterl y collection of emissions data for the former NBP units allow s the opportunity to check data for errors and provide rapid feedback on needed adjustments to data collection sy stems, and thereby promoted accurate and reliable emissions data. For this same reason, existing Federal and S tate emission monitoring programs often require quarterl y reporting, or in some cases, monthly . Less frequent collection, such as semi

- annually or annually , would increase the amount of preparation and review time at the end of the reporting period both for regulated sources and for EPA. This would slow down the process for the verification of compliance.As an option for this program, EPA will allow for ozone season reporting instead of

quart erl y reports for the entire calendar ye ar. Under this option, units would only be required to submit two reports per ye ar (covering the second and third calendar quarters). However, because the Agency

believes that full

- ye ar quarterl y reporting will be b eneficial for both the source and the Agency , this ICR assumes most units will elect to comply with the standard quarterl y reporting requirement. **3 (e**  **) General Guidelines**  This I CR does not violate any of OMB ' s guidelines for information collections. **3 (f**  **) Confidentiality** As required b y Section 114 of the Clean Air Act, estimates or measurements of emissions must be treated as nonconfidential. Under Agency procedures, data items relating to the computation of emissions may be identified as sensitive by a State and are then treated as " State

sensitive " by

EPA. The potentially

State

- sensitive items include the following: p rocess rate, boiler design capacity, emission estimation codes, percent space heat, operating rate, and maximum operation rate/hour. Where Federal and State requirements are inconsistent, EPA Regional Office should be consulted for final reconciliation. **3 (g**  **) Sensitive Questions**  Not applicable. This information collection does not ask any questions concerning sexual behavior or attitudes, religious beliefs, or other matters usually considered private. **4. THE RESPONDENTS AND THE INFORMATION REQUESTED**  This section lists the major categories of businesses that participate in the NO x Budget Trading Program, the data items reques ted from program participants, and the activities in which the participants must engage to assemble or submit the required data items.
**4 (a**  **) Respondents /SIC Codes**  This I CR estimates the burden for affected industry sources to monitor NO x mass emissions s o that states and EPA can track compliance with state emission budgets and NO x control measures. Sources may report data directly

to EPA if a source is required to meet the monitoring and reporting requirements of Subpart H of Part 75. Electric utility c ombustion sources are generall y cl assified as either SIC 4911

- Electric Services, or 4931

- Electric and Other Services Combined [NAI CS 221112 Electric Power Distribution]. Large industrial combustion sources (e.g., boilers, turbines, and internal comb ustion engines) are expected to fall under SI C codes for the manufacturing sector, i.e., SI C Major Groups 29

- 40 [NAI CS 31

- 33 Manufacturing].**4 (b**  **) Information Requested** 

This section describes the industry reporting requirements needed to enable state a gencies to meet their reporting and recordkeeping requirements in §51.122. States must report NO x emissions data as specified in 40 CFR §51.122. (i ) Data Items, Including Recordkeeping Requirements The former NBP units that are not participating in CAIR will continue to monitor NO x mass emissions, and record and report emissions data using the requirements of 40 CFR Part 75. The emissions monitoring requirements specify that affected sources must: (1) submit a monitoring plan for each affected unit at a source; (2) submit data for certification of each monitor; and (3) record hourly operational, pollutant monitor, and flow monitor data for each affected unit and submit quarterl y reports of their emissions data to EPA. Appendices A and B to the CAIR ICR (EPA ICR # 2152.04) contain a list of the data items required by the recordkeeping and reporting provisions of Part 75. Respondents are required by 40 CFR 75.64 to submit the quarterl y NO x mass emissions data electronicall y, b y direct electronic sub mission to EPA, and must also include a certification statement by

the designated representative of the unit. All monitoring records are to be kept for three ye ars, with one possible exception under a voluntary option for fuel flowmeter calibration testin g. (ii) Respondent Activities The former NBP units will (1) complete and submit appropriate monitoring plan forms for each affected source and each affected unit at a source; (2) conduct tests to certify the operation of monitors, and submitting te st results to EPA; (3) record hourl y emissions data (this activity generall y is performed electronicall y); (4) conduct operation and maintenance activities associated with the monitoring, including quality assurance activities; (5) assure data quality, prepare quarterl y reports of emissions data and submit these reports to EPA; and (6) respond to error messages generated by EPA. In addition, respondents will have to purchase the necessary monitoring hardware and purchase the electronic data reporting softw are (or software upgrades). **Emissions Trading Program (Not Active)** This section describes the data items requested from affected sources to facilitate an emissions trading program if active. Allowance Tracking There are several data items required f or allowance tracking activities. First, the utility must submit account certificates of representation for the NO x authorized account representative and (if desired) alternate NO x authorized account representative. This documentation, found in 40 CFR §9 6.13, must include:

● Id entification of the source and unit;● Name and contact information for the NO x authorized account representative and

alternate; ● A list of the owners and operators of each source and unit; and

● A certification statement and si gnature of the NO x authorized account representative and alternate. Certification applications are to be kept for a period of five ye ars pursuant to the general requirements imposed for Title V permitted facilities.
Year

- end Compliance Certifications On or before November 30 of each ye ar, the NO x authorized account representative for each source must submit a compliance certification report covering all units at the source. Under 40 CFR §96.30, the report must include the following:

● Id entification of each unit;

● Serial numbers of each NO x allowance to be deducted from the unit's compliance account (Optional) ;

● For units sharing a common stack, the percentage of allowances to be deducted from the unit's compliance account (Optional) ; and

● Compli ance certification, including certification that the unit was operated in accordance with the emission limitation, verification that the monitoring plan is complete and accurate, a statement that all NO x emissions have been monitored and reported appropriatel y, and whether the basis for certification has changed (and, if so, details of the change).
**5. THE INFORMATION COLLECTED** 
**-- AGENCY ACTIVITIES, COLLECTION**  **METHODOLOGY, AND INFORMATION MANAGEMENT** The first part of this section describes Agency (EPA) activities related to the acquisition, anal ys is, storage, and distribution of the information collected from sources that are required to submit moni toring and test data; the second part describes the information management techniques emplo yed to increase the efficiency of collections. The third part discusses the burden or benefits of the collection activities described in this I CR to small entities. The last part outlines the schedule for collecting information.
**5 (a**  **) Agency Activities**  The tasks that will be performed b y EPA include processing, reviewing, and evaluating e missions data reports submitted by the former NBP units, and conducting appropriate audit activities to verify

the information provided.**5 (b**  **) Collection Methodology and Management** 

Several computer sy stems and associated databases have been developed to record quarterl y emissions monitoring data under Part 75. ; The sy stems and databases are designed to coordinate the information for eas y access and use by the Agency , States , regul ated community , and the public. The EPA also has established a Clean Air Markets Home Page on the i nternet, which includes detailed information collected from emissions reports. The Data and Maps section of the EPA ' s Clean Air Markets Home Page on the i nternet includes detailed information collected from emissions reports, and facility or source data. Those without access to the Internet may use the Clean Air Markets Hotline to request information.
**5 (c**  **) Small Entity Flexibility**  The rulemaking, whi ch EPA published by notice in 63 FR 57356 (October 8, 1998), would simply

require States to develop, adopt, and submit SIP revisions. Pursuant to 5 U.S.C. 605(b), in the rulemaking, the Administrator certified that the rule will not have a significant eco nomic impact on a substantial number of small entities. In addition, under Part 75, there are options for reduced monitoring that may assist smaller sources. The low mass emitter exception (40 CFR 75.19), allows optional reduced monitoring, quality

assurance, and reporting requirements for units that combust natural gas and/or fuel oil and that emit no more than 50 tons of NO x annually (or, at the source ' s election, 25 tons per ozone season) and that calculate no more than the same amount based on specif ied procedures for calculating and reporting emissions. Qualifying sources are not required to keep monitoring equipment installed on (or conduct fuel sampling for) low mass emissions units, nor are they required to perform quality assurance or quality

co ntrol tests. Moreover, emissions reporting requirements are significantly simplified for these units. Even if a gas

- or oil

- fired unit does not qualify for the " low mass emissions unit " exception, the monitoring provisions of Part 75 do allow for the us e of alternative methods to determine emissions. As discussed in the Regulatory Impact Analy sis (RIA) of the final Acid Rain Implementation Regulations (October 19, 1992), smaller utilities are more likely to be dependent on these oil

- and gas

- fired units , especially very small utilities (see p. 5

– 14 of that RIA document).
**5 (d**  **) Collection Schedule**  Former NBP trading units conduct ongoing monitoring, with quarterl y reporting. **6. ESTIMATING THE BURDEN AND COST OF COLLECTIONS**  **6( a**  **) Determining Federal**  **Wage Rates**

Inestimating labor costs for industry , EPA used the following amounts: $91.94 per hour for managers and $63.74 per hour for technicians. These rates were used in the existingAcid Rain Program ( EPA I CR Number 1633.15 , OMB Control Number 2 060

- 0258 ) and are the

consistent with the Current Employ ment Cost Index year 2009. Federal Agency

labor rates were assumed to be $49.38 per hour. This l abor rate was derived from the F ederal government ' s 2009 U.S. Office of Personnel Management General Schedule " Salary

Table 2009

- GS " (http://opm.gov/oca/09tables/html/gs.asp) using the factors in the following table.

**Table 6**
**- 1**  **: Determination of Federal Wage Rates**  Annual Salary of Technical Staff, GS 11 , Step 3 $52,846 Annual Cos t of Supervisory S taff, GS 13, S tep 3 $75,323 Factor (1/11) 0.09 $6,779 Annua l Cost of Support Staff, GS 6, S tep 6 $35,145 Factor (1/8) 0.13 $4,569 Annual Applicable Salary of Permit Staff $64,194 Benefits 1.6 Total Cost per FTE $102,710 Total Hour ly Cost (total per FTE dividend divided by 2,080 hours per year) $49.38
**6(b) Estimating Respondent Burden for Former NBP Units Not Covered under CAIR** This section estimates the paperwork burden and cost of submitting monitoring plans, obtaining cert ification of each monitoring s ys tem, conducting monitor quality assurance activities, and recording and reporting data from CEM sy stems (or approved alternatives), and other ancillary

activities (such as responding to EPA generated error messages, or respo nding to EPA audits). This applies to the former NBP units that continue to monitor in accordance with Part 75 under the NOx SIP Call. To estimate the burden and/or cost, EPA has relied on the estimates included in the most recent Acid Rain Program I CR ( OMB Control Number 2060

- 0258) renewal for labor hour estimates of each activity. Inaddition, the hourly labor rates for managerial, technical, and clerical staff reflect the labor rates used in the Acid Rain I CR in 200 9 dollars, consistent with Agency I C R guidance. Affected sources are required to complete and submit a monitoring plan and obtain certification of each monitor (on standard forms) for each affected unit at the source. These plans and certifications, which are onl y submitted once, have alre ady been submitted for most units. Sources, however, may need to submit revised plans or even recertify if they change some aspect of their existing plan. New units will still need to submit plans and certifications for thefirst time. Inaddition, all affected units are required to submit quarterly reports of their emissions data to EPA; these reports include much of the basic monitoring plan data as well. To develop this renewal ICR, EPA relied primarily on the extensive efforts to identify and calcul ate burdens for the prior two ICR renewals and the CAIR ICR (OMB Control Number 2060

- 0570)

. **Estimating Respondent Burden** The primary

tasks performed by

owners and operators of affected units are : (1) reviewing the regu lations, forms and instructions; ( 2) responding to EPA gene rated error messages and audits; (3) reprogramming a DAHS and debugging the software; (4) completing and submitting monitoring pl ans for each unit at the source; (5) performing appropriate tests and providing test results to certif y each monitor; (6) performing qualit y assurance testing and maint enance upon monitors; (7) assuring the quality of emissions data, preparing quarterly reports of emissions data, and submitting reports to EPA; and (8) fuel sampling. (i ) Regulatory Review . The estimate for time to review instructions and requirements remains consistent with the labor estimates used in previous I CRs ( four manager hours and four technician hours) where no substantial changes have been made to the Rule. EPA continues to m ake available online fully searchable versions of the Part 75 Emissions Monitoring Policy Manual and the Electronic Data Reporting Instructions (Versions 2.1 and 2.2), and is in the process of adding a fully searchable unofficial version of Part 75 to this integrated search Webpage. In addition, EPA in 2005 posted online a text version of its Plain English Guide to Part 75. (ii) Response to Error Messages/Audits

. The EPA provides feedback to sources so that suspected errors in submissions by sources are noted and corrected. With the use of the ECMPS software, EPA believes that the burdens for this activity

have decreased over time. At the same time, however, EPA has increased its audit oversight and expects to conduct a number of electronic and fiel d audits of facilities over the next few years. In particular, EPA anticipates making significant use of electronic audits as a means to provide continuous data quality improvement. This effort will result in increased burdens for respondents. (iii) D AHS Debugging

. Each source must purchase (or create) and install computer software designed to implement the electronic data reporting (EDR) formats required under the Acid Rain Program. EPA promulgate d revisions to Part 75 in late 2007 to accommodate ch anges in EPA ' s data sy stems that manage the data submitted by respondents. These data s ys tem changes were necessary to modernize EPA ' s data s ys tems, and over time should streamline reporting. The costs of the required upgrade were anal yz ed in a separate IC R that was issued in conjunction with the Part 75 revisions. For the time period of this I CR, 2010

- 2012 , no other changes would require a DAHS upgrade and therefore there are no burden hours for this activity

.(iv) Monitoring Plans

.

Consistent with the existing ICR, completing and submitting monitoring plans is estimated to require an average of about 20 hours per unit initially

. For existing units, initial monitoring plan submissions will be received prior to the time period covered in this renewal ICR, and, consistent with the existing I CR, EPA does not include burden hours for existing units under this initial monitoring plan development task area during 2010

– 2012

. The burden associated with revising the monitoring plan is included in the time for preparing and submitting each quarterl y emissions report. For new units, EPA has used an estimated number of new units as a projection for the average number of new units expected in 2010

– 2012

. These units have a separate line item for initial mon itoring plan preparation. (v) Monitor Certification

. For existing units, only

recertifications are included in the estimated activities for 2010

– 2012

. The Agency

estimates a labor burden of 50 hours and a contractor cost of $3,400 per respondent. T he cost and burden figures exclude the costs and burdens associated with conducting a RATA as part of the recertification process because those costs are incorporated within the annual QA costs for previousl y certified monitoring systems. Under Part 75, sources are required to recertify the monitoring sy stems whenever the source makes a replacement, modification, or change in a certified CEMS or continuous opacity monitoring sy stem that may significantly

affect the ability

of the s ys tem to accuratel y meas ure or record the NO x concentration, stack gas volumetric flow rate, NO x emission rate, percent moisture, or to meet the QA and QC requirements. Recertification is also necessary whenever the source makes a replacement, modification, or change to the flue gas handling s ys tem or the unit operation that may

significantly

change the flow or concentration profile. Examples of changes which require recertification include: replacement of the anal yz er, change in location or orientation of the sampling probe or s ite; and complete replacement of an existing CEMS or continuous opacity

monitoring s ys tem. For new units, the monitor certification costs are included in the capital/startup costs. (vi) Quality Assurance

. Quality assurance (QA) testing and maintenance upon monitoring sy stems is the largest burden item under the monitoring, reporting and recordkeeping requirements. The requirements include daily , quarterly

and annual QA requirements, depending on the monitoring approach being used. For reporting units that use flow and NOx CEMS , the Agency has developed a per unit labor burden based primarily on information gathered from affected sources. For units that rely on the excepted methods under both Appendix D and E (i.e., units without CEMS), the burden e stimates are reduced further because no CEMS QA is required. For the relativel y small number of units that require moisture correction, labor burdens for moisture monitoring QA activities have been added based on information supplied by an affected utility (see Docket A

97

- 35, Item II

- D

- 94).(vii) Quarterly Reports

.

Tasks performed b y utilities in preparing quarterl y reports include: (1) a ssuring the quality of the data; (2) preparing the quarterl y report; (3) revising th e monitoring plan, if necessary ; (4) preparation of hard cop y documentation acc ompan yi ng the quarterl y reports; and (5) managerial review. EPA has been improving electronic file transfer procedures over the past few ye ars and has been developing automated tools that allow sources to quality assure their reports. EPA believes these efforts have reduced the average burdens per report over time. In addition, because the program is maturing, the respondents have developed procedures and methods to increase their efficiency with reportin g. **Estimating Respondent Costs**  Table 6

- 4 summarizes the annual respondent costs. The following discussion describes how those costs were derived. (i ) Estimating Total Capital and Annual Operations and Maintenance Costs Capital/start

- up costs includ e the cost of installing required CEMS or alternatives. The Agency developed the capital cost estimates for the CEM and other equipment based on EPA CEM cost models, existing ICRs, and comments from various affected utilities. The cost estimates vary

dep ending on the number and type of monitors that are required. These annualized capital costs are from the Rule to Reduce Interstate Transport of Fine Particulate Matter and Ozone (Clean Air Interstate Rule) EPA I CR #2152.0 4 . The annualized costs ranged from $28,879 for units with a full set of CEMS, to $18,750 for a unit that uses NO x CEMS and Appendix D methods, to $2,250 for units that use both Appendix D and Appendix E methods without any

CEMS. There are no capital/start

- up costs for LME units. A disc ussion of how the capital/start

- up costs were annualized follows in Section (iii) , below

. In addition to capital/start

- up costs, respondents incur operation and maintenance costs (exclusive of labor costs) that reflect ongoing costs to a unit. These cost s include both contractor costs for the required recertification, diagnostic, and quality assurance (QA) testing, and other direct maintenance

- related expenses ( e.g. , spare parts and calibration gases). The cost estimates used in this renewal ICR are gene rally the same as the Rule to Reduce Interstate Transport of Fine Particulate Matter and Ozone (Clean Air Interstate Rule) EPA ICR #2152.0 4 , and have been derived from EPA CEM cost models, existing I CRs, Agency staff experience under the Acid Rain Program, information gathered during development of the 1999 and 2002 Part 75 revisions, and supplemental estimates provided b y affected utilities and others related to the various cost items (see, e.g., EPA Air Docket A

- 97

- 35, Item II

- D

- 48). The total cost for these operation and maintenance cost items (other than fuel sampling) is estimated at $31,200 for a unit with a full set of CEMS, while units that use alternate methodologies have reduced costs. Note that testing contractor costs for certification, recertification, and annual RATAs also are presented as other direct costs and are not converted to equivalent source labor hours. This approach is consistent with the common business practice for obtaining outside contractors to conduct certification/recertif ication tests and annual relative accuracy test audits. For initial certification, the certification test costs are commonly bundled with equipment purchase contracts, according to information provided b y a range of CEMS equipment vendors. ForRATAs that are conducted either as part of the annual quality assurance requirements or as part of recertification, industry contacts have indicated that RATA testing is usually performed under a fixed price contract basis, except for travel costs that may be billed on an hourly

basis beyond the basic contract cost. For annual RATAs, the sources indicated that an annual contract between a testing company and utility

is often used. One municipal utility representative indicated that the applicable municipal regulati ons required that outside contracts be on a flat fee, not hourly , basis. (ii) Capital/Start

- up vs. Operating and Maintenance (O & M) Costs Capital costs reflect one

- time costs for purchase of equipment which will be used over a period of ye ars. Convers ely , operating and maintenance costs are those costs which are incurred on an annual or other scheduled basis. For instance, costs associated with quality assurance activities, such as spare parts or contractor costs for work, will be incurred on an annual basis. (iii) Annualizing Capital Costs The relevant capital costs for the emissions trading portion of this I CR were annualized at a rate of seven percent (i.e., the annualized capital cost was calculated assuming money to purchase the capital equipm ent was borrowed at a seven percent annual interest rate). The cost of the loan was amortized over the life of the loan to repay original borrowed amount plus interest. The result is the annualized capital cost reported.) The annualized cost of the nece ssary capital purchases varies from $2,250 to $ 28,879, per year, per unit, depending on the type of monitoring methodology . The capital costs are from the Rule to Reduce Interstate Transport of Fine Particulate Matter and Ozone (Clean Air Interstate Rule ) , EPA ICR #2152.02. (iv) Fuel Sampling To calculate heat input where the source is using the fuel flowmeter option for an oil or gas - fired unit, the source must obtain gross calorific value data from sampling in accordance with Appendix D of Part 75. For purposes of this ICR, it is assumed that the GCV data would be collected as part of standard business operating procedures to assure compliance with contractual specifications. Thus no additional fuel sampling burdens or costs should be incurred. Thi s is consistent with the Rule to Reduce Interstate Transport of Fine Particulate Matter and Ozone (Clean Air Interstate Rule) , EPA ICR #2152.0 4

. **Estimating the Respondent Universe and Total Burden and Costs for Former NBP Units**  EPA estimates that there are 122 former NBP units that will continue to conduct monitoring in accordance with Part 75 solely under the NOx SIP call. Table 6

- 4 shows the total burden and total cost for this respondent universe. **Estimating Agency Burden and Cost** The tasks that will be performed b y EPA include processing, reviewing, and evaluating emissions data reports submitted by the former NBP units , and conducting appropriate audit activities to verify

the information provided. Assuming that the former NBP units will submit an average of 1 06 emission reports to EPA per quarter, the total annual burden incurred by theAgency

will be 848 hours. ( The annual total of 424 emissions reports is based on 90 quarterl y reporting and an addition al 32 Ozone Season only reporting facility

c ounts. ) The total annual cost to EPA for processing, reviewing, and evaluating these quarterl y emissions reports will be approximately $ 41,875

. Table 6

- 5 summarizes the Agency burden and costs associated with emissions reporting.**TABLE 6**
**- 4**  **: ANNUAL RESPO**  **NDENT BURDEN/COST ESTIMATES FOR FORMER NBP UNITS** 

**Information Collection Activity**  **Mgr.**

**$91.94/ Hour**  **Tech. $63.74/**  **Hour Respondent**  **Hours/ Year**  **Labor Cost/Year**  **Cont./**

**O&M Cost**  **Capital/ Startup**  **Cost Number**  **of Respondents**  **Total**

**Hours/ Year**  **Total**

**Cost/Year** 1. Review Instructions and Requirements 4 4 8 $623 $0 $0 53 424 $ 33,004 2. Respond to EPA Generated Error Messages, Field Audits 6 18 24 $1,699 $0 $0 122 2,928 $207,273 3. DAHS Debugging 4 12 16 $1,133 $0 $0 122 1,952 $138,182 4. New Unit Moni toring Plans 10 10 20 $1,557 $0 $0 12 2740 $18,682 5. Recertify Monitors 38 12 50 $4,259 $3,400 $0 12 600 $51,103 6. Startup/Capital Items and Perform QA Testing and Maintenance (a) NO x and Flow

CEMS 50 480 530 $35,192 $31,2 00 $28,879 0 0 $0 (b) NO x CEM and Fuelmeter 20 375 395 $25,741 $17,400 $18,750 101 39,895 $2,599,871 (c) App. E and Fuelmeter 5 30 35 $2,372 $1,800 $2,250 21 735 $ 49,810 7. Assure Data Quality, Prepare Reports (inc. mo nitor plan update), S ubmit Reports a 20 82 102 $7,065 $0 $0 122 10,812 $ 748,890 TO TAL: 57,586 $3, 689,951

a Based on an assumption of 90 annual reporting and 32 Ozone Season only reporting facilities

.**TABLE 6**
**- 5**  **: ANNUAL AGENCY BURDEN/COST ESTIMATES**  **FOR FOR** **MER NBP UNITS**

**Tasks Quarterly Burden** 

**Hours p**  **er Report Quarterly Cost p**  **er Report**  **a Number of** 

**Reports b**  **Total Burden p**  **er Year**

**(hours) (2010** 

**– 2012)**  **Total Cost** Process, review, and evaluate quarterly report and issue feedback letter

. 2 $98.76 424 848 $41,875

a Based on an average total compensation rate of **$49.38** per hour

. b Based on an assumption of 90 annual reporting and 32 Ozone Season only reporting facilities

. **6( c**  **) Emissions Trading Program**  **Burdens (Not Active)** The following sections contain exhib its and text covering the burdens associated with the NBP Emissions Trading Program, but zeros out those values that are now covered under other ICRs. This option will facilitate a possible revision to the I CR to include the costs of the trading process and monitoring requirements, in case those costs become reassociated with the NO x SIP Call program in the future. Under the NO x Budget Trading Program (NBP), EPA estimated the burden and/or cost of each incidence of the various proposed rule revisions, EP A had available prior estimates of the costs of various activities, estimates provided b y affected utilities in comments to the Agency, and estimates based on the Agency's experience in implementing the existing trading programs. The NBP required all af

fected sources to install a NO x emission rate (or concentration) CEM and a flow CEM (or approved alternative). Affected gas

- and oil

- fired units could elect to use a NO x emissions rate CEM and a fuel flowmeter. In addition, peaking units that burn natural gas and/or fuel oil could use an alternative method for calculating NO x emission rates. EPA also allowed certain low mass emissions units to use assumed emissions factors together with operational data to calculate emissions. **Tracking, Transferring, an d Deducting Allowances**  Labor burden and costs for collections associated with tracking and transferring allowances are functions of the number of transfers anticipated, and were estimated based on the number of transfers recorded by EPA in the previous ye ar. Affected units had the option of identifying specific serial numbered allowances to be deducted b y EPA. Based on past experience, EPA assumed that approximately one fifth of all affected units would submit an optional allowance deduction form e ach ye ar.Estimate of Respondent Burden and Costs for Transfers and Deductions

Table 6

- 7 presents the annual burden and costs to participants in allowance transfers and deductions that would be incurred should the NBP be reinstated. Participants that were not affected units would be required to negotiate an agreement, to designate an authorized account representative, and to file a new account application. These activities would be required only one time, prior to or simultaneous with the participant's first transfer of allowances. All participants would be required to complete and submit allowance transfer information for each transfer of allowances. Under the NBP, EPA estimated about 10 hours to designate an authorized account representative and to open a general account, about two hours to prepare and submit information for an allowance transfer, and about three hours to prepare and submit an optional allowance deduction.

**TABLE 6**
**- 6**  **: ANNUAL RESPONDENT BURDEN/COST ESTIMATES FOR**  **ALLOWANCE TRAN SFERS AND DEDUCTIONS** 

**Tasks Burden Hours per**  **Occurrence Cost per** 

**Occurrence a**  **Total**

**Burden b**  **Total Cost** Designate an authorized account representative and file new account application Managerial 3 Technical 7 Prepare and submit al lowance transfer information Managerial 1 Technical 1 Allowance deduction form (optional) Managerial 1 Technical 2 TO TAL

a Insert d ollar year
. b Assumes 0 participants file new account applications, 0 transfers are made, and 0 optional deduction forms are submitted. Estimate of Agency Burden and Costs for Transfers Agency burden and costs would be divided into those costs associated with enhancing a tracking s ys tem, and those associated with transfe rring and deducting allowances.**Allowance Tracking System**

Under the NBP, the allowance s ys tem regulations set the general requirements for the tracking s ys tem, which was developed b y EPA. Inorder to track allowances, the allowance tracking s ys tem req

uired information on: (1) allowance allocations for each affected facility ; (2) allowance transfers and deductions; and (3) allowance holders. EPA made the information compiled in the allowance tracking s ys tem publicly available in several formats on the internet and worked to continually improve electronic access. **Allowance Transfer System** Under the NBP, EPA estimated that it would require an average of one hour for each transfer notification on paper. Upon receipt of an optional allowance deduction form, in hard copy , EPA recorded the data into the EPA data s ystem. This was estimated to take about 30 minutes per form. Table 6

- 8 summarizes Agency burden and cost estimates for recording and transferring allowances.

**TABLE 6**
**- 7**  **: ANNUAL AGENCY BURDEN/C**  **OST ESTIMATES**

**FOR ALLOWANCE TRANSFERS**

**Tasks Burden**  **Hours Per Occurrence**  **Cost Per**

**Occurrence a**  **Total**

**Burden b**  **(Hours) Total Cost**  Revie w allowance transfer information, record transfer, and notify transfer participants

. 1 Enter deduction data and deduct allowances
. 0.5 TO TAL

a Insert d ollar year
. b Assumes 0 transfers and 0 optional deduction forms are submitted annually. **Annual Compliance Certifications**  **Respondent Burden and Cost Estimates for Annual Compliance** When the trading program was in place, each ye ar between October 1 and November 30, annual compliance certification was required from all affected sources. Each authorized representative was required to submit one annual compliance certification report that included a list of all af

fected units he or she represents. Table 6

- 9 presents respondent burden and costs for annual compliance certification.**TABLE 6**
**- 8**  **: ANNUAL RESPONDENT BURDEN/COST ESTIMATES FOR ANNUAL**  **COMPLIANCE CERTIFICATION**

Tasks Burden Hours Per Occurrence Cost Per

O ccurrence a Total Burden

(Hours) Total Cost Annual compliance certification report b Managerial 1 Technical 4 Common stack allowance Deduction formc Managerial 0.5 Technical 2 TO TAL

a Insert d ollar year
. b Assumes 0 reports covering 0 affected units are submitted.
c Assumes 0 optional common stack allowance deduction forms are submitted. **Estimate of Agency Burden and Costs for Annual Compliance**
Under the NBP Emissions Trading Program , the three primary tasks performed by

the Agency during annual compliance certification were; reviewing and processing the annual form submissions, calculating and deducting and sending out allowance deduction or reconciliation reports to the source des ignated representatives. Table 6

- 10 presents the Agency's annual burden and cost for annual compliance certification.

**TABLE 6**
**- 9**  **: ANNUAL AGENCY BURDEN/COSTS FOR ANNUAL**

**COMPLIANCE CERTIFICATION**

Tasks Burden Hours Per Occurrence Cost Per

Occurrence a Total Burden

(Hours) Total Cost Review and process annual compliance certification submissions b 1 Common stack allowance Deduction form b 0.5 Send allowance reconciliation reports b 0.5 TO TALa Insert d ollar year
. b Assumes 0 reports covering 0 affected units are submitted. **6(d) Summary of Burden Hours and Costs** Table 6

- 10 summarizes the annual aggregate burden and cost estimates to both the respondents and the agency for the period of 2010 through 2012. **TABLE 6**
**- 10**  **: AG GREGATE ANNUAL RESPONDENT**  **AND AGENCY BURDEN AND**  **COST OF COLLECTIONS (2010**

**– 2012)** 

**Program Total Annual Burden**  **(Hours) Total Annual Costs**  **a** Annual Industry Respondent Burden 57,586 $3, 689,951 Annual Agency Burden 848 $ 41,87 5 TOTAL 58,434 $3, 731,826

a 200 9 dollars. **6(e) Reasons for Change in Burden** Hourly burden estimates in this I CR renewal are reduced from those in the previous I CR. Decreases are due to the shift of trading activity from the NOx Budget Trading Pro gram to the CAIR NOx trading programs. **6(f) Burden Statement** The annual public reporting and recordkeeping burden for this collection of information is estimated to average 136 hours per response. Burden means the total time, effort, or financial reso urces expended b y 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 s ys tems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing way s to compl y with any previously

applicable instructions and requirements; train personnel to be abl e to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information. An agency may not conduct or sponsor, and a person is not required to respond to, a co llection of information unless it displays a currentl y valid OMB control number. The OMB control numbers for EPA's regulations are listed in 40 CFR part 9 and 48 CFR chapter 15. To comment on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including the use of automated collection techniques, EPA has established a public docket for this I CR under Docket ID Number EPA

- HQ

- OAR

- 2006

- 0947 , which is availabl e for online viewing atwww.regulations.gov, or in person viewing at the Air and Radiation docket in the EPA Docket

Center (EPA/DC), EPA West, Room 3334 , 1301 Constitution Avenue, NW, Washington, D.C. The EPA Docket Center Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday , excluding legal holiday s. The telephone number for the Reading Room is (202) 566

- 1744, and the telephone number for the Air and Radiation docket is (202) 566

- 1742. An electronic version of the public docket is available at www.regulations.gov. This site can be used to submit or view public comments, access the index listing of the contents of the public doc ket, and to access those documents in the public docket that are available electronicall y. When in the sy stem, select "search," then key in the Docket ID Number identified above. Also, yo u can send comments to the Office of Information and Regulatory Aff airs, Office of Management and Budget, 725 17th Street, NW, Washington, D.C. 20503, Attention: Desk Officer for EPA. Please include the EPA Docket ID Number EPA

- HQ

- OAR

- 2006

- 0947 and OMB Control Number 2060

- 0445 an y correspondence.