file:///C|/Documents%20and%20Settings/aassem01/Desktop/For%20Rendering/OAR-2008-0708-DRAFT-0356%20M.%20King%20(40).txt ----- Forwarded by Melanie King/RTP/USEPA/US on 02/16/2010 10:40 AM

----- |------------> | From: | |------------> >--------------------------------------------------------------------------- ---------------------------------------------------------------| |Melanie King/RTP/USEPA/US | >--------------------------------------------------------------------------- ---------------------------------------------------------------| |------------> | To: | |------------> >--------------------------------------------------------------------------- ---------------------------------------------------------------| |"Higgins, Cortney" <Cortney_Higgins@omb.eop.gov> | >--------------------------------------------------------------------------- ---------------------------------------------------------------| |------------> | Date: | |------------> >--------------------------------------------------------------------------- ---------------------------------------------------------------| |02/16/2010 09:56 AM | >--------------------------------------------------------------------------- ---------------------------------------------------------------| |------------> | Subject: | |------------> >--------------------------------------------------------------------------- ---------------------------------------------------------------| |RE: Clarifying questions on RICE | >--------------------------------------------------------------------------- ---------------------------------------------------------------|

file:///C|/Documents%20and%20Settings/aassem01/Des...ng/OAR-2008-0708-DRAFT-0356%20M.%20King%20(40).txt (1 of 5)2/22/2010 10:09: 00 AMfile:///C|/Documents%20and%20Settings/aassem01/Desktop/For%20Rendering/OAR-2008-0708-DRAFT-0356%20M.%20King%20(40).txt (See attached file: Existing CI RICE NESHAP Supporting Statement Final Rule 1- 14-2010.doc) Melanie King Energy Strategies Group Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency
Mail Code D243-01 RTP, NC 27711 Phone: (919) 541-2469 Fax: (919) 541-5450 king.melanie@epa.gov

|------------> | From: | |------------> >--------------------------------------------------------------------------- ---------------------------------------------------------------| |"Higgins, Cortney" <Cortney_Higgins@omb.eop.gov> | >--------------------------------------------------------------------------- ---------------------------------------------------------------| |------------> | To: | |------------> >--------------------------------------------------------------------------- ---------------------------------------------------------------| |Melanie King/RTP/USEPA/US@EPA | >--------------------------------------------------------------------------- ---------------------------------------------------------------| |------------> | Date: | |------------> >--------------------------------------------------------------------------- ---------------------------------------------------------------| |02/16/2010 09:25 AM | >---------------------------------------------------------------------------

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Hi Melanie, Can you send the ICR supporting statement? I think it would be helpful to see how the reporting and recordkeeping estimates were derived and how they are averaged. Thanks, Cortney From: King.Melanie@epamail.epa.gov [mailto:King.Melanie@epamail.epa.gov] Sent: Sunday, February 14, 2010 9:47 PM To: Higgins, Cortney Cc: Wayland.Robertj@epamail.epa.gov; Tsirigotis.Peter@epamail.epa.gov; horowitz.michael@epamail.epa.gov Subject: Re: Clarifying questions on RICE Hi Cortney, Regarding the spreadsheet you sent – typically when we are evaluating MACT or GACT for a control technology, we do not include costs for recordkeeping and reporting in the analysis. We would only look at the annual cost associated with the control device, including the operation and maintenance cost and the annualized capital cost. So we would not do our analysis the same as the way you’ve done it in your attached spreadsheet. On the reporting costs, one thing to keep in mind is that 80 percent of those costs are initial costs for reading instructions, training personnel, and the initial testing and compliance notifications. So those are one-time costs that would only be incurred in the first year.

file:///C|/Documents%20and%20Settings/aassem01/Des...ng/OAR-2008-0708-DRAFT-0356%20M.%20King%20(40).txt (3 of 5)2/22/2010 10:09: 00 AMfile:///C|/Documents%20and%20Settings/aassem01/Desktop/For%20Rendering/OAR-2008-0708-DRAFT-0356%20M.%20King%20(40).txt We have tried to minimize the burden of the reporting costs as much as possible, however we do need some reporting so that we can ensure sources are complying with the rule, and we feel that semiannual compliance reports are appropriate and not overly burdensome. Note that we do not require reporting for emergency engines and for engines <100 HP at major sources and <300 HP at area sources. Melanie King Energy Strategies Group Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency
Mail Code D243-01 RTP, NC 27711 Phone: (919) 541-2469 Fax: (919) 541-5450 king.melanie@epa.gov -----"Higgins, Cortney" <Cortney_Higgins@omb.eop.gov> wrote: ----- To: Melanie King/RTP/USEPA/US@EPA From: "Higgins, Cortney" <Cortney_Higgins@omb.eop.gov> Date: 02/12/2010 06:31PM cc: RobertJ Wayland/RTP/USEPA/US@EPA Subject: Clarifying questions on RICE

Hi Melanie,

Attached you'll find a spreadsheet of the costs and benefits for area source engines between 300 and 500 HP. The attached analysis shows that requiring controls for these engines, if they run less than ~100 hrs per year, is not cost-beneficial (costs of controls exceed the PM2.5 benefits). Do you know how many engines in this group run less than 100 hours per year and are not emergency engines?

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Additionally, for these sized engines running 100 hours, the estimate of reporting costs is 1/3 of the total annual costs. Given that these engines will have control devices installed, and emissions reductions will be achieved, is there any flexibility to ease the reporting requirements? Furthermore, is there any flexibility in lessening in the reporting requirements for the area source engines subject to emissions limits (and thus technology controls)?

Thanks,
Cortney

[attachment "Engine_hours_CBA_OMB.xls" removed by Melanie King/RTP/USEPA/US]

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