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

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 |RE: Clarifying questions on RICE 

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file:///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

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 |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.

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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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