1 

## Supporting **State ment** 

**f o**  **r Information Collection Request** 
**Clean Air Interstate Rule to Reduce Interstate Transport of Fine**

**Particle Matter and Ozone (Renewal)**

EPA I CR Number 2152.03 ; OMB Control Number 2060

- 0570

40 CFR Part 51 40 CFR Part 96

Clean Air Markets Division Office of Air and Radiation U.S. Environmental Protection Agency2**1. IDENTIFICATION OF THE INFORMATION COLLECTION** 

**1(a) Title of the Information Collection** 
Clean Air I nterstate Rule to Reduce I nterstate Transport of Fine Particle Matter and Ozone, IC R Number 2152.03, OMB Number 2060

- 0570. **1(b) Short Characterization/Abstract** 
In 2005, t he United State s (U.S.) Environmental Protection Agency (EPA) promulgated a the Clean Air I nterstate Rule (CAI R) to Re duce I nterstate Transport of Fine Particle Matter and Ozone . CAI R combine d its reporting requirements with existing requirements from the Consolidated Emissions Reporting Rule (CERR), the Emission Reporting Requirements for Ozone State Im plementation Plan (SI P) Revisions Relating to State wide Budgets for NO x Emissions to Reduce Regional Transport of Ozone (NO x SI P Call) and the Acid Rain Program (ARP) under Title I V of the CAA Amendments of 1990. T hese other requirements ha ve approved IC R s in place. CERR is covered under OMB Control Number 2060

- 0088, and the ARP is covered under OMB Control Number 2060

- 0258

. T he IC R Emission Reporting Requirements for Ozone State Im plementation Plan (SI P) Revisions Relating to State wide Budgets for NO x Emissions to Redu ce Regional Transport of Ozone (NO x SI P Call) , OMB Control Number 2060

- 0445) expire s at the end of 2008. Sources previously subject to the NOx SI P Call requirements are now covered under CAI R. This supporting State ment and I CR is being submitted to accou nt for the incremental burden associated with CAI R. As such, this supporting State ment references the burden analy sis included in the I CRs for CERR (2060

- 0088) and ARP (2060

- 0258) and estimates the change in burden resulting from CAI R bey ond the scope of these I CRs.
This I CR details the additions and changes to reporting requirements associated with CAI R. These changes can be logically divided into two categories: 1 ) c hanges to existing requirements for emission reporting under the CERR ; and 2 ) t he ad dition of reporting requirements to support emissions trading in State s using the CAI R model cap and trade rules. Throughout this Supporting State ment, the burden analy sis associated with these two categories will be discussed sequentially as " Emission Re porting Requirements " and " Emission Trading Requirements. " **Emission Reporting Requirements**
T he existing emissions reporting requirements under the CERR are already rather comprehensive. First, in Arkansas, Florida, I owa, Louisiana, Mississippi, and Wi sconsin , which we have determined make significant contributions to ozone nonattainment in another State but are not among the 21 State s subject to the NO x SI P Call , the required emissions reporting will be expanded to match those of the NO x SI P Call State s. The change requires that those State s report NO x emissions during the five

- month ozone season, in addition to the existing requirement for reporting emissions for the full y ear. This new requirement begins with the triennial inventory ye ar prior to th e CAI R implementation date. This will be the 2008 inventory y ear, the report for which will be due to EPA by June 1, 2010. By

combining the SI P Call and CAI R emission2

reporting, this I CR now accounts for the ozone season emissions reporting by all 2 8 Sta te s and the District of Columbia. Second, under the existing CERR, y early reporting is required only for sources whose emissions exceed specified amounts. Under CAI R, the 23 State s and the District of Columbia subject to CAI R for reasons of PM 2.5 must re port to EPA each y ear a set of specified data elements for all sources subject to new controls adopted specifically to meet the CAI R requirements related to PM 2.5 , unless the sources participate in an EPA

- administered emissions trading program. This is li ke the every

- ye ar reporting requirement for controlled sources under the NO x SI P Call, but covering SO 2 in addition to NO x and covering the whole y ear - since the PM 2.5 NAAQS at issue is the annual NAAQS

- rather than only the ozone season. This rule coul d increase the number of sources for which State s must submit reports each y ear rather than only every third y ear, if a State chooses to control non

- EGU sources under CAI R or if the State does not join the EPA trading programs for EGUs

. This new requireme nt will begin with the 2009 inventory

y ear, the report for which will be due to EPA by June 1, 2011. After the 2009 reporting y ear, this new requirement will have no effect on State s that fully comply with CAI R by requiring their EGUs to participate in th e EPA model cap

- and

- trade programs. **Emission Trading Requirements**
For this I CR, it is assumed that each State will adopt the relevant CAI R SO 2 , annual NO x and ozone season NO x model trading rules, and the burden associated with these programs is evaluate d. The trading program s include paperwork burden related to : 1) transferring and tracking allowances; 2) allocation of allowances to affected units; 3) permitting; 4) annual y ear end compliance certification; and 5) monitoring and reporting

. The monitor ing and reporting requirements of the trading program s will require capital and labor expenditures by industry , and these are evaluated.
As with the Acid Rain Program and the NO x SI P Call, the ability to buy and sell (or transfer) allowances is expected t o provide substantial economic benefits by encouraging the greatest emissions reductions where costs of reductions are lowest. Allowance trading cannot be implemented, however, unless regulations governing emissions monitoring and permitting of sources ar e in place as well. To ensure compliance with the emissions reduction requirements and to provide the region wide consistency needed to foster the allowance market, the designated representative of the owners and operators of each source with affected uni ts are required to have CAI R requirements integrated into their Title V permits for the affected source and to certify that an approved SO 2 and NO x emissions monitoring sy stem has been installed and is properly operated at each affected unit.
For affected units currently required to monitor using Part 75 provisions, information for the allocation methodology will be recorded and collected as part of the emissions monitoring and reporting process. While many sources have already

installed necessary

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

- up costs.3

Emissions monitoring and reporting by sources in the cap and trade program is fundamental to the allowance trading sy stem. 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 sy stem would be undermined, and there would be no assurance that the cap is achieved and emissions had been reduced. To meet the emissions monitoring, recordkeeping and reporting requirements, aff ected units are required to : 1) submit a monitoring plan and certification reports for each monitoring sy stem ; 2) record hourly emissions data ; and 3) submit reports of their emissions and operating data to EPA. Sources with monitors already certified un der Part 75 may

be exempt from initial certification requirements.
Note that EPA recently

revised 40 CFR Part 75 (see 73 FR 4312 , January 24 , 2008). A separate I CR addresses the specific burdens associated with meeting those revised Part 75 requirement s
. In large pa rt, these revisions support EPA ' s modernization of electronic reporting under Part 75, through the new Emission Collection and Monitoring Plan Sy stem (ECMPS). While th e IC R estimates a one

- time burden of understanding and implementing the n ew rules, in the longer term, EPA believes the new sy stem will streamline the reporting process. EPA has not ye t accounted for any

reduced burden in this I CR, but intends to use the 2009 through 2011 implementation period to evaluate whether the reporting burden estimates in this I CR (and the Acid Rain Program I CR) should be modified based on reporting through ECMPS. All participants in the allowance transfer sy stem are required either to complete and submit an allowance transfer form for each allowance t ransfer or to perform the transfer on

- line. Participants in the transfer sy stem that are not affected sources, such as allowance brokers, fuel suppliers and environmental groups are also required to file a onetime account information application to establ ish accounts in the allowance tracking sy stems. For sources affected by CAI R , allowance transfers currently conducted under the Acid Rain and NO x SI P Call Programs will occur in the context of the CAI R Trading Program starting in 2009 for the ozone season NO x programs and 2010 for the SO 2 annual program

. The only additional transfers as a result of CAI R will occur under the annual NO x trading program.
**2. NEED FOR AND USE OF THE COLLECTION**  **2(a) Need/Authority for the Collection**  One of the goals of this rulemaking is to consolidate the emission inventory reporting requirements found in several existing regulations and streamline the activities involved in submitting the emissions data to EPA. This will enable the EPA to achieve uniformity and completene ss in emission inventories used to support national, regional, and local air quality planning and attainment. While the CAA does not provide a specific authorization for a national emissions data base, the CAA provides the EPA ample legislative authority for acquiring such data. Emissions data are of vital importance to the EPA for fulfilling a host of monitoring, standard

- setting, rulemaking, reviewing, and reporting duties. Section 110 and 301(a) of the CAA provide a primary authority for a national em issions data base. Section 110 requires each State to prepare a plan which provides for implementation, maintenance, and enforcement of the primary standard for each pollutant for which air quality criteria have been issued. This plan must include4

provis ions for periodic reports identify ing sources and listing amounts of emissions. Section 301(a) authorizes the Administrator to promulgate necessary regulations. Congressional support for collecting and reporting emissions data is demonstrated in three se ctions of the CAA. Section 110(a)(2)(F) requires that each State provide for periodic reports on the nature and amounts of emissions of criteria pollutants from stationary sources. Sections 182(a)(3)(A) and 187(a)(5) of the CAA specify periodic inventory requirements for ozone and CO nonattainment areas, respectively . Section 182(a)(3)(A) requires State s with ozone nonattainment areas to submit a current inventory of actual emissions of VOC, NO x , and CO every three ye ars. Section 187(a)(5) requires a si milar inventory of actual CO emissions for CO nonattainment areas. Periodic inventories include emission estimates for all point, nonpoint, onroad mobile, nonroad mobile, and biogenic sources. Section 172(c)(3) also provides the Administrator with discre tionary authority to require other emissions data as deemed necessary for State Im plementation Plan (SI P) development in nonattainment areas to meet the NAAQS. I n 1998, EPA promulgated the NO x SI P Call which require d the affected State s and the District o f Columbia to submit SI P revisions providing for NO x reductions to reduce their adverse impact on downwind ozone nonattainment areas. (63 FR 57356, October 27, 1998). As part of that rule, codified in 40 CFR 51.122, EPA established emissions reporting re quirements to be included in the SI P revisions required under that action. The CERR emissions reporting requirements w ere promulgated by

EPA in 2002, and are codified at 40 CFR part 51 subpart A (67 FR 39602, June 10, 2002). These requirements replaced t he requirements previously contained in subpart Q, expanding their geographic and pollutant coverages while simplify ing them in other way s. The CAI R rulemaking consolidated two sections of title 40 of the CFR that contain emissions reporting requirements applicable to State s ( subpart A of part 51 (the CERR) and section 51.122 in subpart G of part 51 (the NO x SI P Call reporting requirements) ) and incorporated some m odifications. The emissions reporting requirements for CAI R are included in 40 CFR 51.125. The requirements in section 51.125 are intended to achieve the reporting needed to verify

the reductions required by CAI R

. Under the CAI R requirements in section 51.12 5 , every y ear State s must report to EPA, both the annual emissions of NO x and SO 2 and t he ozone season (May 1 through September 30) emissions of NO x from sources that the State has determined to be subject to the emissions control requirements of CAI R . The affected State s are also required to report ozone season emissions and ty

pical summer daily

emissions of NO x from all sources every third y ear ( 2011 is the next reporting y ear ). The reports are due to EPA on December 31 of the calendar y ear following the inventory

y ear. The emissions reporting requirements affect the District of Columbia and the 28 State s affected by CAI R

. **2(b) Practical Utility/Users of the Data**  **Emission Reporting Requirements** Emissions data and related information on stationary point and nonpoint sources, as well as non - road and on

- road mobile sources, are routinely used by OAQPS and EPA Regional Offices in carry ing out a variety of activities. These activities support regulatory functions as5

well as functions that are more programmatic in nature such as trends analy ses. Such projects include:

● Evaluation of exis ting control strategies , such as CAI R, for State s and larger areas;

● Evaluation of proposed control strategies for State s and larger areas, including applications of regional scale models;

● Development of national control strategies and preparation of Regulatory I mpact Analy ses (RI A);

● Preparation and publication of national summaries of emissions including trend analy ses;

● As a data base to assist in the identification of important source categories for future regulation; and

● Preparation of the stationary source portion of a report to Congress on SO 2 emissions. This report is required by Section 406 of the CAA and is due on a five

- y ear cy cle that began on January 1, 1995. The report must contain an inventory of national annual SO 2 emissions fro m industrial sources (as defined in Title I V of the CAA).
EPA ' s Office of Research and Development (ORD) uses emissions source data in determining priorities for control technology research and as a key

data component in the application of regional scale models. EPA ' s Regional Offices use emissions and other source parameters to support source inspections and in the analy ses of the impact of new or modified sources within an area. EPA ' s Emission Factor and I nventory Group (EFI G) use the data to assess an d analy

ze trends in criteria pollutant emissions over time.
In addition to supporting projects and initiatives internal to EPA, both OAQPS and EPA ' s Regional Offices respond to numerous requests for reports on emission sources. Ty pically this is done und er the Freedom of I nformation Act. Most requests come from contractors and consultants involved in special studies; a smaller number come from the press and universities and others involved in research. The collection of emissions data specific to nonatt ainment areas for certain criteria air pollutants is necessary

to comply

with requirements specified in Title I of the CAA. State s with nonattainment areas rely

on current information for point, nonpoint, and mobile sources to revise their SI Ps and to pla n for emission reductions mandated by the CAA. I n addition, a State wide inv entory compiled at least every

three ye ars for all point, nonpoint, and mobile sources is considered to be a key

tool to assist State s in meeting CAA requirements that address emis sions tracking, compliance issues, and mid

- course adjustments. State wide emission inventories can be used by State s affected by pollution transport from upwind areas to develop more efficient control strategies to meet the NAAQS. State wide emission inven tories that were developed by EPA (the NEI ) are being used by the Regional Planning Organizations (RPOs) as the starting point for the development of State wide emission inventories used in the regional haze program to define control strategies.6

**Emission T rading Requirements**  Permit applications, including proposed compliance plans, will be used by State s and EPA to issue operating permits and to allocate allowances. A permit application is legally binding on the owners, operators, and designated represent ative of a source until the actual permit is issued. Affected sources may rely on the permit for information on the requirements with which they

must comply . Because permit applications and permits are public documents, they may be used by

the public to examine activities undertaken by affected sources. Data from emissions monitoring is indispensable to successful implementation of the trading programs for two reasons:

● The primary

purpose of the trading programs is to assist State s in the attainment of the ozone and fine particulate matter national ambient air quality standards (NAAQS) by reducing the adverse effects of the transport of ozone, ozone precursors and fine particles from upwind State s by

reducing annual emissions of sulfur dioxide and nitrogen oxides; and

● EPA can only

enforce the program by

comparing, for each affected unit, emissions data and the number of allowances held.
In formation collected on allo wance transfers is used by EPA or its designated agent to track allowances for the purpose of determining compliance with the NO x and SO 2 Trading Programs. I nformation on allowance transfers is also used by participants in the allowance market and the pub lic to evaluate the activities of affected sources, and by EPA for program evaluation. Together, the allowance trading sy stem, operating permits, and emissions data helps to provide the accountability needed so that the NO x and SO 2 Trading Programs can fu nction without more stringent command and control approaches.
**3. NONDUPLICATION, CONSULTATIONS, AND OTHER COLLECTION CRITERIA**  **3(a) Nonduplication**  **Emission Reporting Requirements** EPA will allow the direct reporting of point source data from sources to EPA to satisfy this requirement if the sources are subject to the monitoring and reporting requirements of 40 CFR Part 75. The direct reporting of data from sources to EPA will minimize the reporting burden on State s. Also, direct reporting will avoid du plication of effort for sources subject to the Part 75 requirements. **Emission Trading Requirements** Reporting requirements for affected sources for the CAI R NO x and SO 2 Trading Programs are integrated with existing Part 75 reporting formats. The reportin g formats are7

currently used by Acid Rain Program units under Title I V of the Act and through 2008 are being used by units subject to the NO x SI P Call Trading Program implemented under Title I of the Act. Thus, for units subject to Acid Rain or the CAI R q uarterly reporting requirements, or both, only one submission will need to be made on a quarterly basis. Starting in 2009, CAI R reporting replaces NO x SI P Call trading program reporting. **3(b) Public Notice Required Prior to ICR Submission to OMB** 
An ann ouncement of the public comment period for this I CR renewal was published in the Federal Register (73 FR 24973 ) on May 6 , 2008. I n addition, all documents associated with this I CR renewal are accessible on www.re gulations.gov , under Docket # EPA

- HQ

- OAR

- 2006

- 0947 and Docket # EPA

- HQ

- OAR

- 2008

- 0317. No comments were received in response to this IC R renewal

. **3(c) Consultations**  **Emission Reporting Requirements** During the development of emission reporting requ irements for CAI R discussions were held with STAPPA/AL APCO to clarify EPA ' s logic in developing the rule and to answer questions. The Agency

has provided seven implementation workshops for state personnel and five additional workshops for sources, both of which were well attended with up to 200 participants. Average attendance at these workshops has been about 110 stakeholders. I n addition, EPA holds bimonthly consultations with STAPPA as well as monthly monitoring conference calls with states, and the C AI R rule and related issues are an important component of those c onsultations and meetings. **Emission Trading Requirements** The requirements for the CAI R Trading Programs have been developed using both the methodology

found in existing trading programs a s well as consultations with interested parties

. EPA built on the cap and trade strategy used in the Acid Rain Program, Ozone Transport Commission ' s NO x Budget Program, and the NO x SI P Call. EPA held two workshops with State s in the NO x SI P Call or OTC p rograms to discuss lessons learned in those programs. Additionally , EPA has had frequent interaction with affected sources and State s in the course of implementing the Acid Rain and NO x SI P Call Trading Programs. EPA has received comments following the w orkshops and through these less formal interactions and considered and incorporated those comments into the final CAI R rule package

. Recently , EPA has held numerous consultations with stakeholders as EPA implements the new data sy stem (ECMPS) that will su pport Part 75 reporting as of January 1, 2009. EPA has also held stakeholder workshops on CAI R implementation. EPA has considered and accounted for those interactions in preparing this renewal I CR. Finally , as part of updating the previous IC R for the A cid Rain Program (Part 75) monitoring requirements, EPA contacted various affected parties to gather information on CEM8

capital costs, CEM operation and maintenance costs, fuel meter capital costs, and CEM/fuelmeter testing costs. That information has bee n used in this I CR where appropriate. **3(d) Effects of Less Frequent Collection**  **Emission Reporting Requirements** The submittal dates required for reporting of emissions data to EPA have been established to minimize the burden on State and local agencies , but also to ensure that State and local agencies are collecting timely and sufficient emissions inventory data to support their air pollution control efforts. A State wide inv entory compiled at least every

three ye ars for all point, nonpoint, and mobile sources is considered important to assist State s in meeting various CAA requirements.
If the information collect ion were not carried out every three ye ars for all sources and annually for major point sources, the EPA would not be able to maintain a centra l, national repository

of emissions data from which to extract updated information needed to fulfill EPA mandates. If this information collection were not carried out annually for sources being controlled to meet the SO 2 and NO x budgets, EPA would not be able to verify that emission reductions necessary to meet each State ' s SO 2 and NO x emission budgets were being achieved.
In addition, a triennial report of all NO x sources State wide is vital in enabling EPA to track State s ' progress towards meeting the NO x budgets. Because the SO 2 and NO x budgets prescribed have been deemed essential in order for downwind State s to attain the NAAQS in a timely manner, data collected less frequently would be of little or no use. **Emission Trading Requirements**
Submittal of allowance trading information and emissions information on an annual basis provides necessary

feedback on the requirements of the program, especially whether the program caps have been maintained. I f this information collection were not carried out annua lly for sources being controlled to meet the SO 2 and NO x budgets, EPA would not be able to verify that emission reductions necessary to meet each State ' s SO 2 and NO x emission budgets were being achieved. Because the SO 2 and NO x budgets prescribed have bee n deemed essential in order to aid downwind State s in attaining the NAAQS in a timely manner, data collected less frequently would be of little or no use. Quarterly collections of emissions data allows the opportunity to check data for errors and provide rapid feedback on needed adjustments to data collection sy stems, and thereby promotes accurate and reliable emissions data. For this same reason, existing federal and State emission monitoring programs often require quarterly reporting, or in some cases, monthly . L ess 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 verificatio n of compliance.9

**3(e) General Guidelines** 
This I CR does not violate any of OMB ' s guidelines for information collections. **3(f) Confidentiality**  Any data that is submitted to EPA under this rule will be considered in the public domain and cannot be treat ed as confidential. As required by

Section 114 of the Clean Air Act, estimates or measurements of emissions must be treated as non

- confidential. Under Agency procedures, data items relating to the computation of emissions may b e identified as sensitive by a State and are then treated as " State

sensitive " by

EPA. Th e potentially State

- sensitive items include the following: Process rate, boiler design capacity , emission estimation codes, percent space heat, operating rate, and maxim um operation rate/hour . Where Federal and State requirements are inconsistent, EPA Regional Office should be consulted for final reconciliation. **3(g) Sensitive Questions**  This information collection does not ask any questions concerning sexual behavior or attitudes, religiou s beliefs, or other matters usually considered private.
**4. THE RESPONDENTS AND THE INFORMATION REQUESTED**  **4(a) Respondents/Standard Industrial Classification (SIC) Codes**  **Emission Reporting Requirements** The emissions data required by the rule will gene rally

be submitted by State air pollution control agencies. Under the CERR, there are 55 State and t erritorial air pollution control agencies, as well as 49 local air agencies that will be subject to the national reporting requirements and will be require d to compile and report emissions information for large stationary point sources on an annual basis, and for smaller point sources, stationary non point and mobile sources on a three

- ye ar basis. CAI R require s 2 8 State s and the District of Columbia to repor t NO x and SO 2 emission related data on an annual and triennial basis. Those State s subject to CAI R for reasons of PM 2.5 and/or ozone must report to EPA each y ear a set of specified data elements for all sources subject to new controls adopted specifically to meet the CAI R requirements related to PM 2.5 and/or ozone , unless the sources participate in an EPA

administered emissions trading program. The affected SI C code would be 9511

- Air and W ater Resource and Solid W

aste Management , which includes governme ntal environmental protection and control agencies, and pollution control agencies. Because all 28 State s and Washington D.C. intend to use the trading program, no burden is associated with this requirement. **Emission Trading Requirements**
This I CR also estimates a burden for affected industry sources to monitor SO 2 and NO x mass emissions and demonstrate compliance with SO 2 and NO x control measures. Sources may10

report data directly

to EPA if a source is required to meet the monitoring and reporting requ irements of Part 75. All affected State s and Washington D.C. have chosen to control large electric utility

sources to comply

with their SO 2 and NO x emissions budgets. Electric utility combustion sources are generally classified as either SI C 4911

- Elect ric Services, or 4931

- Electric and Other Services Combined [NAI CS 221112 Electric Power Distribution]. In addition, the NO x SI P Call trading program affected combustion sources across many industrial sectors. State s previously subject to that trading p rogram have the option to keep those sources in the CAI R ozone season NO x program, and many State s have elected to do so. Those sources include a wide range of SI C [NAI CS] codes, including cement kilns, which fall primarily under SI C 327

- Concrete, Gypsu m, and Plaster Products ) [NAI CS 3273 Cement Manufacturing and 3274 Gy psum Product Manufacturing] and large industrial combustion sources (e.g., boilers, turbines, and internal combustion engines), which are expected to fall under SI C codes for the manufact uring sector, i.e., SI C Major Groups 29

- 40 [NAI CS 31

- 33 Manufacturing]. **4(b) Information Requested**  **Emission Reporting Requirements**
The CERR and NO x SI P Call established the basic emission reporting requirements. CAI R changes some of these requirements such that the previously accounted for reporting burden also change s . Only the changes to the CERR and NO x SI P Call reporting requirements that would change reporting burden are discussed here. Respondent activities For the emission inventory reporting requirements of CAI R , respondent activities are very similar to what has been required to satisfy reporting under CERR and the NO x SI P Call

. The specific State respondent activities associated with CAI R that are changes from the existing CERR requirement s include a triennial State reporting burden. This I CR includes estimates for the incremental burden across all CAI R affected State s and Washington D.C., including those previously

subject to the NO x S IP Call reporting requirements.
T he one

- time State b urden items include r ead ing the reporting requirements of the rule and the Triennial State burden item

. **Emission Trading Requirements** This section describes the data items requested from affected sources for the collections described in this I CR. This s ection also defines the activities in which respondents must engage to assemble, submit, or store these data items. (i) Data Items, Including Recordkeeping Requirements (a) Allowance Tracking There are several data items required for allowance trackin g activities. First, the affected source must submit account certificates of representation for the CAI R designated representative11

and (if desired) alternate CAI R designated representative. This documentation, the requireme nt for which is found in 40 CFR 96.113, .213 and .313, must include:

● Id entification of th e source and unit;

● Dates on which the unit commenced operation and commenced commercial operation;

● Name and contact information for the CAI R designat ed representative and alternate;

● A li st of the owners and op erators of each source and unit; and

● A certification State ment and signature of the CAI R designated representative and alternate. Certification applications are to be kept for a period of five ye ars pursuant to the general requir ements imposed for Title V permitted facilities.

(b) Permitting The basic requirement for permitting is an application for a permit revision to a source ' s operating permit issued under Title V of the Act. Although there is some possibility that a non

T itle V source could be affected under the CAI R Trading Program, all affected sources are assumed to be Title V sources for purposes of this I CR. Except for the permit revision application, all of the other monitoring, reporting or recordkeeping requiremen ts associated with Title V permitting are either part of the baseline Title V requirements or are covered separately under section 4(c). Title V permit applications must be kept for five ye ars pursuant to Title V recordkeeping requirements. I n addition, some coal

- fired units that are not part of the Acid Rain Program may have to apply for a permit to construct under Title I of the Act as part of a CAI R compliance strategy . For this I CR, most of this burden was expected to occur prior to the end of 2008. During the 2009

- 2011 period, this I CR estimates that only a small percentage of sources will still have to go through the permitting process as a result of CAI R

.

(c) Monitoring and Reporting Affected trading program sources are required to monitor SO 2 and 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 da ta for certification of each monitor ; and 3) record hourly operational, pollutant monitor, and flow monitor data for each affected unit and submit quarterly reports of their emissions data to EPA. Respondents are required by 40 CFR 75.64 to submit the qua rterly SO 2 and NO x mass emissions data electronically , by direct electronic submission to EPA, and must also include a certification State ment by the designated representative of the unit. All monitoring records are to be kept for three y ears, with one po ssible exception under a voluntary option for fuel flowmeter calibration testing.12

(ii) Respondent Activities The primary

tasks that will be performed by trading program respondents to meet the emissions monitoring requirements are : 1) completing and su bmitting appropriate monitoring plan forms for each affected source and each affected unit at a source; 2) conducting tests to certify the operation of monitors, and submitting test results to EPA; 3) recording hourly emissions data (this activity generall y is performed electronically ); 4) operation and maintenance activities associated with the monitoring, including quality assurance activities; 5) assuring data quality , preparing quarterly reports of emissions data and submitting these reports to EPA; and 6) responding to error messages generated by EPA. I n addition, some respondents will have to purchase the necessary

monitoring hardware and purchase the electronic data reporting software (or software upgrades). Most of these purchases are expected to o ccur prior to 2009 but this I CR continues to include annualized costs for sources that are likely to have incurred these expenditures through 2008.
**5. THE INFORMATION COLLECTED**  **B AGENCY ACTIVITIES, COLLECTION**  **METHODS, AND INFORMATION MANAGEMENT 5(a)**  **Agenc y Activities**  **Emission Reporting Requirements**
The EPA activities associated with the rule include:

● Receiving, reviewing, and storing emission in ventory data submitted by

each State ;

● Processing and updating data submitted by State s, including performing quality assurance of data, and coordination of efforts to resolve errors and anomalies; and

● Fu lfilling information requests. **Emission Trading Requirements** The major EPA activities related to the CAI R Trading Program include : (1) maintenance and administration of the SO 2 and NO x allowance tracking sy stems, (2) reviewing permit applications, (3) r eviewing monitoring plans and certification applications, (4) processing, reviewing and evaluating reports of quarterly emissions data from affected units, (5) calculating/reviewing annual emissions from affected sources, and (6) reviewing total annual emi ssions data submitted to track each State ' s progress toward meeting its budgets and creating a summary report of emissions. EPA will use a computer sy stem to track and maintain monitoring and emissions information. EPA will also answer respondent questio ns and conduct audits of data submissions. **5(b) Collection Methodology and Management**  **Emission Reporting Requirements**13

The EPA has establish ed a central repository of inventory

data for all State s termed the National Emissions I nventory (NEI ) database. Emissions inventory data reported electronically will be stored in the NEI

database and used by

the EPA and by

other State s for air modeling, tracking progress in meeting CAA requirements, setting policy , and answe ring questions from the public. The EPA h as created and maintains the NEI database as a central repository of inventory data for all State s, but the data must be supplied by the State s in electronic form. The EPA currently requires that State s use the NEII nput Format (NI F) for electronic data r eporting (EDR). EPA is in the process of reengineering the NEI in order to improve the process for State agency submittals. **Emission Trading Requirements** To ensure consistency region wide and to expedite data entry , EPA requires that standard formats us ed for Part 75 reporting be used to submit the information collected for the CAI R Trading Programs. Several computer sy stems and associated databases have been developed to (1) track allowances, (2) record quarterly emissions monitoring data, and (3) calc ulate the number of allowances to be deducted each y ear. The sy stems and databases are designed to coordinate the information for easy

access and use by

the Agency , State s, regulated community , and the public. Beginning with the first quarter of 2009, al l industry sources must use the Emissions Collection and Monitoring Plan Sy stem (ECMPS) to submit monitoring plan, quality assurance, certification test, and emissions data to EPA for the Acid Rain and CAI R programs.
The EPA also has established a Clean A ir Markets Page on the I nternet, which includes detailed information collected from emissions reports. Those without access to the I nternet may use the Clean Air Markets Hotline to request information, including summary reports. The Agency expects to rel y on these electronic means to disseminate information about the CAI R Trading Program s as the program s are implemented. **5(c) Small Entity Flexibility**  **Emission Reporting Requirements**
State and t erritorial control agencies are not considered to be small entities. OMB ' s definition for a small entity includes small governmental jurisdictions with populations of less than 50,000. According to 1999 population data from the U.S. Census Bureau, no State or Territory has a population below this threshold. How ever, certain local air pollution agencies may be in charge of individual counties or multi

- county areas whose population is less than 50,000. These local agencies have had experience compiling their 2002 and 2005 inventories that were submitted to EPA in June 2004 and June 2007, respectively , as required by the CERR

. **Emission Trading Requirements**14

The CAI R Trading Program includes fossil fuel

- fired units (stationary boilers, combustion turbines, and combined cy cle sy stems) that serve an electrical gene rator of capacity greater than 25 MWe. Units with a lower capacity are not included because of the high cost of monitoring emissions from these sources and the de minimis nature of their emissions. There is one small unit provision applicable to the CAI R Trading Program s which provides for reduced monitoring. The low mass emissions provisions (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 100 tons of NO x annually provided that no more than 50 tons of NO x is emitted in the ozone season (May 1

- September 30) and no more than 25 tons of SO 2 annually and that calculate no more than the same amount based on specified procedures for c alculating and reporting emissions. Utilities that qualify 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

control tests. Mo reover, 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 " provisions, the monitoring provisions of Part 75 do allow for the use of alternative methods to determine emissions. As discussed in the Regulatory I mpact Analy sis (RI A) of the final Acid Rain I mplementation Regulations (October 19, 1992), smaller utilities are more likely to be dependent on these oil

- and gas

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

- 14 of that RI A document). This analy sis remains relevant under CAI R

. **5(d) Collection Schedule**  Collection frequency

under CAI R will be on a quarterl y, annual, and triennial basis. A ll affected industry

sources will use ECMPS to submit monitoring plan, quality assurance, certification test, and emissions data to EPA on a quarterly basis. I n addition, CAI R requires the collection of allowance trading and emissions information on an annual basis and the collection of a State wid e inventory

of NO x sources every

three y ears
. **6. ESTIMATING THE BURDEN AND COST OF THE COLLECTION**  **6(a) Estimating Respondent Burden**  **Emission Reporting Requirements** The respondent burden for comply ing with the reporting requirements of the rule is es timated incremental to the burden associated with existing annual inventory and periodic inventory reporting requirements.
In general, State s already

have mechanisms in place for reporting emissions data to EPA under the existing CERR and NO x SI P Call in ventory requirements , particularly for those State s previously

subject to the NO x SI P Call (the requirements of which are covered by CAI R starting in 2009) . The changes to the existing reporting requirements are specified in Section 4(b)(i) of this suppor ting State ment.15

Other ongoing State activities that support existing inventory reporting requirements include:

● Collecting emissions data and other associated information;

● Training staff in coding and submissions techniques;

● Quality

- assuring emiss ions data and resolution of errors and anomalies identified by EPA;

● Maintaining records associated with data submitted by sources; and

● Preparing and submitting required inventory data items in approvable format. This supporting State ment estimates b urden using methods similar to the ones used for the CERR and the NO x SI P Call. As State d in 40 CFR §51.125(b)(2), each State must provide triennial reports of SO 2 and NO x emissions data from all affected sources within the State . The CAI R reporting requ irements necessitate the estimation and reporting of annual NO x and SO 2 emissions in 2011 for all State s subject to CAI R for purposes of ozone and PM 2.5 . For State s subject to CAI R for purposes of ozone nonattainment, respondents must also submit ozone se ason and daily

NO x emissions data from all affected sources. For these State s, EPA estimates that each respondent would spend 24 hou rs of technical staff time and one hour of managerial staff time

. The following sections discuss the assumptions used to d evelop burden hour estimates for one

- time only activities and triennial activities. Table 6

- 1 lists the burden items included under these categories, and presents the ir associated burden hours for one ye ar. I n general, manag erial time was estimated to be five percent of technical staff time. Burden hours and associated costs were estimated for the 2009

- 2011 period. Table 6

- 2 shows the required activities that a State must perform each y ear, during the se ye ar s
. Table 6

- 3 presents the State and local res pondent annual burden hours and costs by activity

. The time for State s, t erritorial, and local agencies to read and interpret the reporting requirements of the rule was estimated to be one hour for technical staff a nd one hour for managerial staff.
**Em ission Trading Requirements**  This section estimates the paperwork burden and cost of submitting permit applications, allowance tracking and transfer materials (including applications for early reduction credits), ye ar - end compliance certifications, submitt al of monitoring plans, obtaining certification of each monitoring sy stem, conducting monitor quality assurance activities, and recording and reporting data from CEM sy stems (or approved alternatives).
To estimate the burden and/or cost of each incidence of the various rule revisions, EPA had available prior estimates of the costs of various activities, estimates provided by affected utilities in comments to the Agency , and estimates based on the Agency ' s experience in implementing the trading programs und er the NO x SI P Call and the Acid Rain Program

.16

For the purposes of this analy sis, the trading sources are grouped into the following categories:

● Acid Rain Program units located in any CAI R

- affected State ;

● Trading units (non

- Acid Rain) located in a PM/ O 3 State (AL, FL, IA, IL, I N, KY, LA, MD, MI , MO, MS, NY, NC, OH, PA, SC, TN, VA, WI , WV , and DC) or a PM

- only State (GA, MN and TX) ; and

● Trad ing units (non

- Acid Rain) located in an O 3 - only State (AR, CT, DE, MA, and NJ)

. Note that for certain collection activities, the burden is calculated separately for sources located in the NO x SI P Call region in order to account for the fact that these sou rces are already familiar with the reporting requirements. The NO x SI P Call Program, a region wide cap

- and

trade program that phases out at the end of 2008, targeted utility and large industrial combustion sources to facilitate NO x emissions reductions in the NO x SI P Call region. As such, the burden for the information collection activities associated with reviewing instructions and requirements and debugging computer software will be lower for sources located in this region. The NO x SI P Call State s in t he CAI R region include Alabama, Connecticut, Delaware, I llinois, I ndiana, Kentucky , Mary land, Massachusetts, Michigan, Missouri, New Jersey , New York, North Carolina, Ohio, Pennsy lvania, South Carolina, Tennessee, Virginia, and West Virginia, as well as th e District of Columbia

. The CAI R Trading Program requires all affected sources to monitor NO x and SO 2 emission s , SO 2 emission rate, and heat input in order to determine NO x mass emissions and SO 2 mass emissions. Coal

- fired units use an SO 2 , NO x , and flow CEMS to meet those requirements. Oil and gas units have some alternatives. For SO 2 , these units can use fuel sampling and analy sis (or an SO 2 default factor for pipeline natural gas) combined with a fuel flowmeter. In addition, peaking units that burn natural gas and/or fuel oil may use an alternative method for calculating NO x emission rates. EPA will also allow certain low mass emissions units to use assumed emissions factors together with operational data to calculate NO x and SO 2 emissions. For pur poses of this I CR, it is important that the burdens and costs be calculated only in terms of incremental impacts for units subject to the Acid Rain Program. As such , the labor hour and cost estimates per unit or facility , as identified in this document, r epresent the weighted average burden and cost for all units and do not represent the actual burden and cost for a particular unit or facility

. For sources previously subject to the trading program under the NO x SI P Call, this I CR incorporates the burdens previously accounted for in the I CR under that program. I n addition, this I CR does not attempt to take into account the potential for sources to use monitoring equipment required under another program (such as a 40 CFR Part 60 New Source Performance Stand ard). As such, the weighting is a conservative estimate. The following discussion highlights some of the basic differences for the categories of units. I ncluded in this discussion is the consideration of monitoring and reporting activities that are curre ntly

completed by

many of these sources under the Acid Rain Program. Trading units subject to the Acid Rain Program that are located in a CAI R State will have the smallest overall impact with regard to monitoring and reporting. Aside from a small burden17

associated with DAHS upgrades (for those not previously subject to the NO x SI P Call), Acid Rain Program

- affected units already monitor and report both SO 2 mass emissions and NO x emission rates on a y ear round basis and will not incur additional burdens (or capital and operating and maintenance costs) as a result of CAI R since they have already

installed and are operating a CEMS (or approved alternative). Trading units not subject to the Acid Rain Program that are located in a CAI R State will incur the la rgest impact with regard to monitoring

. For the CAI R ozone season program, this IC R incorporates the monitoring burdens previously accounted for under the NO x SI P Call I CR (ICR Number 1857.03). For the CAI R annual NO x and SO 2 programs ( in State s not prev iously covered by

the SI P Call or in the CAI R ozone season program), sources are currently not required to monitor according to Part 75. These sources will need to monitor and report NO x emissions during the O 3 season and on an annual basis as well as SO 2 on an annual basis

. The burdens will be less in State s that are subject only to the CAI R ozone season NO x program. These units will also have additional burden associated with permit applications and certain allowance transactions. Monitoring will depe nd on the ty pe of fuel and the amount of time the unit is operated. Therefore, the costs will vary depending on the appropriate monitoring alternative and the monitoring requirements that previously appl ied to the unit under the NO x SI P Call.
Sources are subject to the CAI R Trading Programs NO x monitoring and reporting requirements in 2008 and the SO 2 monitoring and reporting requirements in 2009. Compliance with the emissions caps , along with allowance holding requirements , begins in 2009 for NO x and 20 10 for SO 2 . Table 6

- 4 shows the burden associated with monitoring SO 2 and NO x under the CAI R trading programs at the various ty pes of sources. The primary

tasks performed by

owners and operators of affected units are : 1) permitting ; 2) monitoring, recor ding, and reporting emissions data ; 3) allowance trading activities ; and 4) submittal of the y ear end compliance certification. (i) Permitting Each affected entity

will have to submit a permit revision application to include in the source ' s Title V perm it the necessary conditions related to compliance with the CAI R Trading Programs. The Agency included the burden for this application process in the 2006

- 2008 time period. For this renewal I CR, covering 2009 through 2011, EPA estimates that approximately ten percent of the sources may still need to complete some permit application steps (such as to correct issues/problems). EPA believes that this application should be relatively routine, and that a standard method of incorporating the requirements by ref erence or a standard set of permit conditions will be available. The Agency estimates that, on a per unit basis , about four managerial hours will be required to revise the Title V permit. Some sources will also be required to construct additional facilit ies, and therefore will need to complete a permit to construct application. The Agency estimates that this requirement will be necessary

for all coal

- fired units that are not in the Acid Rain Program and that the task will take 20 hours of managerial and 20 hours of technician time, per permit. This action was18

previously

accounted for in the 2006 through 2008 time period, and EPA estimates th at in 2009 through 2011, only

ten percent of the sources will need to undertake further steps in this process. (ii ) Monitoring

. For monitoring, the burdens differ greatly based on the amount and ty pe of monitoring the unit is already

subject to and the particular subtask of monitoring being conducted. The specific elements of burden are:
Start

- up Activities. A la rge part of start

- up activities involves capital and test contractor costs. However, the owner or operator will incur some labor burden for these activities, as applicable. For Acid Rain units that were also previously affected by

the NO x SI P Call, CAI R imposes no start

- up burdens bey ond existing programs. There will be a small burden associated with DAHS upgrades for those ARP units not previously affected by

the NO x SI P Call. For the non - Acid Rain units , the burdens reflect arranging for SO 2 and NO x C EMS purchase (as required) and oversight of the certification process. The non

- Acid Rain units in O 3 - only State s would need to purchase and certify only NO x monitoring sy stems

. In the 2009 through 2011 time period, EPA anticipates that purchase and certi fication has already occurred for all NO x and SO 2 sy stems. During this period, only new units will need to go through this process. Some units will also have to recertify their sy stems. Because capital costs are annualized in prior I CRs (see IC R Numbers 2152.01 and 2152.02), those annualized capital costs continue to occur in the 2009 through 2011 period. Owners and operators of Acid Rain units, non

- Acid Rain units, and non Acid Rain units in O 3 - only State s , will incur an insignificant certification cos t increase due to the air emission test body

competency

requirements affecting RATAs, site

- specific NOx L ME tests, and Appendix E tests

.
Regulatory Review . The I CR includes an allocation of time for the managerial and technical staff to review the regul atory requirements and the reporting formats and instructions. U nits not in the Acid Rain Program that were also not previously affected under the NO x SI P Call , will have a burden similar to that estimated for Acid Rain Program units in the Acid Rain Prog ram I CR

-- 24 hours of managerial time and 24 hours of technician time in y ear one of the program and four hours each for managerial and technician time, per y ear, after y ear one. The burden estimates for all Acid Rain units and units previously affected under the NO x SI P Call is reduced because of the similar Acid Rain and NO x SI P Call requirements. The estimates for these units are five hours of managerial time and five hours of technician time in y ear one and one hour each per y ear after y ear one.
Re sponse to Error Messages . The Agency provides feedback to affected sources for errors that are found in monitoring plans or other reports. The Agency estimates that for each unit not affected by the Acid Rain Program , an owner or operator will spend appr oximately four hours of managerial time and eight hours of technician time responding to these error messages each y ear. (The time for the other sources is accounted for in other I CRs.) DAHS Debugging . Based on experience with the Acid Rain Program, som e effort will be involved to fix problems with the DAHS software used to report in the Part 75 formats. This burden is assumed to fall primarily on units that are not affected under the Acid Rain Program or19

previously

affected under the NO x SI P Call. Con sistent with the existing Part 75 I CR, the Agency estimates that about 16 managerial and 88 technician hours will be spent on this task in the first y e ar of implementation, and then one managerial and four technician hours will be required in the second an d subsequent y ears of implementation. Monitoring Plans . The regulations require submittal of monitoring plans. Because most of the monitoring plan elements are now part of the EDR format, the effort involved in developing and maintaining the plans are incorporated into the overall reporting burden estimate. Monitor Certification/Recertification . I nitial certification burdens and costs for new monitoring equipment are addressed above under start

- up activities since these costs are often part of the ove rall purchase expense for the equipment. For some non Acid Rain units, however, there will be burdens associated with certify ing existing monitors used under other programs for this program, as well as burdens for recertification to the extent a change in a monitoring sy stem requires recertification. EPA estimates that approximately ten percent of all units will have to recertify each y ear following the y ear in which the initial certification occurs. The I CR incorporates a labor burden estimate generally consistent with existing Agency models for the labor burdens associated with certification. However, note that the I CR reduces the labor hours for this activity

to avoid double counting hours that are already accounted for in the quality assurance activi ty

area (see the following subsection). The double counting would occur because a portion of the labor incurred for the certification or recertification event replaces the labor burden that is generally

allocated to the annual relative accuracy test audit (RATA) in the y ear in which the certification event occurs. Owners and operators of Acid Rain units, non

- Acid Rain units, and non - Acid Rain units in O 3 - only State s , will incur an insignificant certification cost increase due to the air emission test body competency requirements affecting RATAs, site

specific NOx L ME tests, and Appendix E tests

. Quality Assurance . Quality assurance (QA) activities and other routine maintenance for monitoring sy stems is the largest burden item under the CAI R Trading Progra ms. These requirements generally

include daily , quarterly , and annual QA requirements, depending on the monitoring approach being used. For reporting units that use a CEMS, the Agency has assumed a per unit labor burden based on a variety of sources, inc luding the existing Acid Rain Program IC R, the NO x SI P Call I CR that expires at the end of 2008 , information provided by Acid Rain Program sources, a CEM cost model developed by EPA, and comments submitted in response to the section 110 SI P Call for ozone transport. For units that rely on alternative methodologies, reduced labor burden estimates apply because the quality

assurance activities for the excepted methods are less than for a CEMS. Consistent with the existing Acid Rain Program I CR, the labor bu rden is expected to be almost entirely technician labor. Owners and operators of Acid Rain units, non

- Acid Rain units, and non - Acid Rain units in O 3 - only State s , will incur an insignificant certification cost increase due to the air emission test body com petency requirements affecting RATAs, site

- specific NOx L ME tests, and Appendix E tests

. Quarterly Reports . Tasks performed by utilities in preparing quarterly reports include: (1) assuring the quality

of the data, (2) preparing the quarterly report, (3) revising the monitoring plan, if necessary , (4) preparation of hard copy documentation accompany ing the quarterly reports, and managerial review. The existing Acid Rain program I CR was used as the basis for these estimates.20

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 I CR, it is assumed that the GCV dat a 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. (iii) Allowance transaction activities The Agency

anticip ates the average number of additional allowance transactions will be approximately 7,500 per y ear beginning in 200 9

. Since this I CR now covers the units and activities associated with the NO x SI P Call, this estimated number of transactions reflects the in cremental number of transactions previously estimated for units subject to CAI R (approximately

2,500) along with the number of transactions previously accounted for under the NO x SI P Call trading program (approximately 5,000 based on 2007 allowance transac tion data). A portion of all units will likely conduct transactions in each y ear solely as a result of this program. The Agency

believes that each transaction will involve about one hour each of managerial and technician time. **6(b) Estimating Responde**  **nt Costs**
Table 6

- 3 presents State and local respondent annualized hours and costs for each information collection activity . To estimate annualized hours and costs for one

- time and triennial activities, the burden estimate is divided by three to estimate the burden over a three

ye ar period. Table 6

- 4 summarizes the annual industry respondent costs. The following discussion describes how the costs were derived. (i) Estimating Labor Costs
For this I CR, the labor rate used for technical staff at State ag encies is $ 37.73 per hour, and the labor rate for managerial employ ees at State agencies is $ 46.21 . These labor rates include benefits and overhead. These labor rates are derived from data shown on the U. S. Department of Labor, Bureau of Labor Statistic s, web site at http://stats.bls.gov/news.release/ecec.toc.htm . Wage and salary rates are given in Employ ee Costs for Employ ee Compensation " Table 3. State and local government, by major occup ation and industry

group ( December 200 7 ). " The wage and salary rates from this table account for benefits provided to workers. When considering both technical and managerial hours, labor costs for State and Territorial agencies are estimated to be $46,00 0 per y ear per respondent, and labor costs for local agencies are estimated to be $30,000 per y ear per respondent for the emissions reporting requirements.
In estimating labor costs for industry respondents , EPA used the following amounts: $ 83.43 per hour for managers and $ 58.00 per hour for technicians. These rates reflect the rates used in the existing NO x Budget Program I CR , adjusted for inflation using the Bureau of Labor Statistics Employ

ment Cost I ndex.21

Federal Agency

labor rates were assumed to be $ 47.39 per hour. This labor rate was derived from the federal government ' s General Schedule dated January 2008 published by

the U.S. Office of Personnel Management (see: http://www.opm.gov/oca/0 8tables/pdf/gs.pdf ) using the factors in the following table.

**Determination of Federal Wage Rates**
Annual Salary of Technical Staff, GS 11 Step 3 $ 51,358 Annual Cost of Supervisory Staff, GS 13, step 3 $ 73,201 Factor (1/11) 0.09 $ 6,588 Annual C ost of Support Staff, GS 6, step 6 $ 34,156 Factor (1/8) 0.13 $ 4,440 Annual Applicable Salary of Permit Staff $ 62,386 Benefits (at 16%) $ 9,982 Sick Leave/ Vacation (at 10%) $ 6,239 General Overhead (at 32%) $ 19,964 Total Cost per FTE $ 98,571 Total Hourly Cost (total per FTE dividend divided by 2,080 hours per year) $ 47.39

( ii) Estimating Capital and Operations and Maintenance Costs **Emission Reporting Requirements** EPA has concluded that the Capital and Operations and Maintenance Costs e stimated under the CERR are sufficient to accommodate the modest changes in reporting burden for CAI R . Therefore, no estimate of Capital and Operations and Maintenance Costs were made for this I CR. **Emission Trading Requirements** Capital/start

- up costs in clude the cost of installing required CEMS or alternatives. Operation and maintenance costs (exclusive of labor costs) reflect ongoing costs to a unit and include both contractor costs for the required recertification, diagnostic, and quality assurance (Q A) testing, and other direct maintenance

- related expenses (e.g., spare parts and calibration22

gases). These cost estimates have been derived from EPA CEM cost models, existing I CRs, Agency staff experience under the Acid Rain and NO x SI P Call programs, and supplemental estimates provided by

affected utilities and others related to the various cost items.
Most Acid Rain affected units are not expected to incur any non - labor costs associated with this program. The total non

- labor cost for capital/start

- up i tems is estimated at $4,000 per unit for most Acid Rain units that are not in the NO x SI P Call region (to account for a DAHS upgrade to provide NO x mass reporting under Part 75, Subpart H)

. Most non Acid Rain units will require some combination of a NO x , diluent, SO 2 and/or flow CEMS depending on the fuel ty pe, whether the unit is an L ME or peaking unit, and whether the source is subject to CAI R for PM 2. 5 and/or ozone. The costs for these units range from $15,000 to $192,000. The cost for an SO 2 analy zer has been estimated at $42,525. The variance in unit cost is due to the monitoring methodology

used and what monitoring equipment may already be in place at the unit. Note that testing contractor costs for certification, recertification, and annual rel ative accuracy test audits (RATAs) 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/recerti fication tests and annual RATAs. For initial certification, the certification test costs are commonly bundled with equipment purchase contracts, according to information provided by a range of CEMS equipment vendors. For RATAs that are conducted either a s 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 bey ond the basic contract cost. The Agency

also notes that this I CR does not include a cost for the purchase of monitoring equipment for units. Many sources covered by

the CAI R Trading Programs are already required to have CEMS under that program. Therefor e, to the extent that no new equipment is needed by

these sources, capital costs are not included because those costs were included in the Acid Rain Program IC R. Thus, the capital and other costs included in Table 6

- 4 represent weighted average costs for each respondent, not the total individual cost for any particular respondent. ( iii) Capital/Start

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

- time costs for purchase of equipment which will be used over a period of y ears. Conversely , 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. (iv) Annualizing Capital Costs The relevant capital costs for the emissions trading portion of this I CR wer e annualized at a rate of seven percent ( i.e., the annualized capital cost was calculated assuming money to p urchase the capita l equipment 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 plus23

interest. The result is the annualized capital cost reported. The an nualized cost of the necessary capital purchases varies from $2,250 to $22,500, per y ear, per unit, depending on the ty pe of monitoring methodology

. Table 6

- 4 contains a breakdown of annual costs by monitoring methodology

. **6(d) Estimating the Responde**  **nt Universe and Total Burden and Costs Emission Reporting Requirements**  The number of respondents is estimated to be 29 State s (including DC ). See Table 6

- 1 for the total number of hours and costs estimated for each respondent. **Emission Trading Requir ements**  The number of industry

respondents varies depending on the activity in question. Activities such as processing allowance transfers can involve over one thousand sources. The number of units that will be required to install a particular ty pe of mo nitoring equipment will be less since many

already have monitoring equipment under the Acid Rain Program . Table 6

- 1 provide s estimates for the State burden associated with the trading program requirements . Table 6

- 2 provides estimates of industry burden for 2009 through 2011

. The total number of respondents and the total labor and cost for all respondents are summarized in the following tables in Section 6(e) below. This burden includes monitoring, reporting, and other activities involved in participati ng in the CAI R emissions trading programs. The total number of State and industry respondents is estimated to be 29 and 1,161 , respectively

. **6(e) Bottom Line Burden Hours and Cost Tables**  **Emission Reporting Requirements**

**Total Estimated Respondent B urden and Cost Summary** 

**Number of Respondents**  **Total Hours Per Year** 

**(All Respondents) Total**  **Costs Per Year (All**  **Respondents)** State Respondents 29 3,480 $ 132,776

**Emission Trading Requirements**

**Total Estimated Respondent Burden and Cost Summary**

**Number of**  **Respondents Total Hours**  **Per Year**

**(All Respondents) Total**  **Costs Per Year (All Respondents)**  State Respondents 29 12,760 $ 491,27224

Industry Respondents 1 , 161 388 ,4 6 5 $ 5 0 , 845 , 155

**6(f) Reasons for Change in Burden**  The burden and cost is higher than the previous CAI R I CR (2152.02) because this I CR incorporates the burden associated with all CAI R

- affected sources, including those located in NO x SI P Call State s. The NO x SI P Call I CR ( OMB Control Number 2060

- 0445 ) expires at the end of 2008. As such, s tarting in 2009, the burden associated with the NO x trading program requirements under the NO x SI P Call are now covered in this I CR. Without incorporating those burdens and costs, the overall labor burden in this I CR would be less than the estimate in the prior version (2006

- 2008) of this I CR. **Emission Reporting Requirements** The net change in emission reporting burden as compared with the approved I CRs for the CERR is an increase of 120 hours (per respondent per y ear) , which were included to account for t he preparation and submittal of the 2011 triennial report. The overall burden is higher than the previous I CR since all CAI R

- affected State s are now covered under this I CR. **Emission Trading Requirements** The large burden associated with this rule is a result of the costs of monitoring, certify ing, quality assuring and reporting emissions data from large electric generating units regulated under CAI R. The burden is significantly higher than the previous I CR since the NO x Budget Program will phase

- out a t the end of 2008 and the affected sources in all CAI R

- affected State s will be covered under CAI R starting in 2009. Affected sources for which the burden was previously included in the NO x SI P Call I CR are now included in the burden estimate for this I CR. However, t his burden is tempered by the integration of these monitoring and reporting requirements with those already required under the Acid Rain P rogram and those previously required under the NO x SI P Call trading program. Otherwise, the burden would be higher. **6(g) Burden**  **State ment**  The annual public reporting and recordkeeping burden for this collection of information is estimated to average 87 hours per response. Burden means the total time, effort, or financial resources expended by

persons to g enerate, 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 sy stems for the purposes of collecting, validating, and v erify ing information, processing and maintaining information, and disclosing and providing information; adjust the existing way s to comply with any previously

applicable instructions and requirements; train personnel to be able to respond to a collection o f 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 collection of information unless it display s 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 15.25

Send comments on the Agency ' s need for this information, the accuracy of the provided burden estimates, an d any suggested methods for minimizing respondents burden, including through the use of automated collection techniques, to the Director, OPPE Regulatory In formation Division, U.S. Environmental Protection Agency (2137), 401 M St., S.W., Washington, DC 204 60; and to Paperwork Reduction Project (OMB# 2060

- 0570 ), Office of In formation and Regulatory Affairs, Office of Management and Budget, W ashington, DC 20503, Attention: Desk Officer for EPA. Please i nclude the EPA I CR number (2152.0 3 ), the EPA Docket I D Number ( EPA

- HQ

- OAR

- 2006

- 0947 and EPA

- HQ

- OAR

- 2008

- 0317 ) and the OMB Control Number ( 2060

- 0 57 0 ) in an y correspondence.

**Table 6**
**- 1**  **Annual State**  **Respondent Burden and Cost by Activity, 2009 and Subsequent Years**

**Hours and Costs Per Respondent Total Hours a**  **nd Costs Information**  **Collection or Trading Rule**  **Activity Manager** 

**$46.21 per hour**  **Technical**

**$37.73 per hour**  **Respondent**

**Hours/ Year**  **Labor**

**Cost Number of**  **Respondents Total** 

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

**Cost/ Year**  Annual Trading Program

- related activities (e.g., mo nito ring certifications, audits) 40 400 440 $16,940 29 12,760 $491,272

Submit triennial report in 2011 6 114 120 $4,578 29 3,480 $132,776

**Total 46**  **514 560**  **$21,5 18**  29 **16, 240**  **$62 4,048** 26DRAFTSupportingStatementICRJune30,2008Page26 **Table 6**
**- 2**  **Annual Industry Respondent Burden and Cost by Activity, 2009 and subsequent years** 

**Inform ation Collection**  **Activity Respondent**  **Labor Cost/Year**  **2009 Annual Capital**  **Manager $83.43**  **Per Hour (2009)**  **Technical**

**$58.00 Per Hour**  **(2009) Respondent** 

**Hours/Year 2009**  **Startup Costs**  **2009 O&M** 

**Cost 2009**  **Num ber of** 

**Respondents 2009**  **Total**

**H ours**  **/ Year**  **2009 Total** 

**Cost/Year 2009**  Title V permit application (facilities) 4 0 4 $333.72 116 464 $38,711.52

Perm it to Construct (units) 20 20 40 $2,828.60 7 280 $19,800.20
**Startup/ Capital Item s**  **~ ARP Sources in PM and O 3**  **Stat e**  **s**

a. DAHS modification (facilities) 2 4 6 $398.86 $600.00 410 2,460 $409,532.60

**~ Non**
**- ARP Sources in PM/O**  **3 and PM Only**  **State s** 

a. Solid Fuel: SO 2 , NO x , and Flow CEMS (units) 34 23 57 $4,170.62 $28,900 102 5,814 $3,373,203.24

b. Gas

- Oil : NO x CEMS and Appendix D fuel mo nitoring (units) 64 10 74 $5,919.52 $18,750.00 493 36,482 $12,162,073.36

c. Gas

- Oil Peaking Units: Appendix D fuel sampling, Appendix E, or LME methods (units) 20 10 30 $2,248.60 $2,250.00 150 4,500 $674,790.0027DRAFTSupportingStatementICRJune30,2008Page27 (cont.)

**Table 6**
**- 2**  **Annual Industry Respondent Burden and Cost by Activity, 2009 and subsequent years (cont.)**

**Inform ation Collection**  **Activity Respondent**  **Labor Cost/Year**  **2009 Annual Capital**  **Manager $83.43**  **Per Hour (2009)**  **Technical**

**$58.00 Per Hour**  **(2009) Respondent** 

**Hours/Year 2009**  **Startup Costs**  **2009 O&M** 

**Cost 2009**  **Num ber of** 

**Respondents 2009**  **Total**

**Hours/ Year**  **2009 Total** 

**Cost/Year 2009**  **~ Non**
**- ARP Sources in O**  **3 Only**  **State s** 

a. Solid Fuel: NO x , and Flow CEMS (units) 24 3 27 $2,176.32 $22,500.00 4 108 $98,705.28

b. Gas

- Oil : NO x CEMS and Appendix D fuel mo nitoring (units) 64 10 74 $5,919.52 $18,750.00 28 2,072 $690,746.56

c. Gas

- Oil Peaking Units: Appendix D fuel sampling, Appendix E, or LME methods (units) 20 10 30 $2,248.60 $2,250.00 0 0 $0.00

**Review Instructions and Requirem ents**  ~ ARP PM and O 3 Sources (facilities) 1 1 2 $141.43 908 1,816 $128,418.44

~ Non

- ARP NBP Sources in PM/O 3 and PM Only State s (facilities) 1 1 2 $141.43 138 276 $19,517.3428DRAFTSupportingStatementICRJune30,2008Page28

~ Non

- ARP non

- NBP Sou rces in PM/O 3 and PM Only State s (facilities) 24 24 48 $3,394.32 104 4,992 $353,009.28

(cont.)

**Table 6**
**- 2**  **Annual Industry Respondent Burden and Cost by Activity, 2009 and subsequent years (cont.)**

**Inform ation Collection**  **Activity Respondent**  **Labo r**  **Cost/Year 2009**  **Annual Capital Manager**  **$83.43 Per Hour**  **(2009) Technical** 

**$58.00 Per Hour**  **(2009) Respondent** 

**Hours/Year 2009**  **Startup Costs**  **2009 O&M** 

**Cost 2009**  **Num ber of** 

**Respondents 2009**  **Total**

**Hours/ Year**  **2009 Total** 

**Cost/Year 2009**  **Review Instructions and Requirem**  **ents (cont.)** ~ Non

- ARP NBP Sources in O 3 Only State s (facilities) 1 1 2 $141.43 10 20 $1,414.30

~ Non

- ARP non

- NBP Sources in O 3 Only State s (facilities) 24 24 48 $3,394.32 1 48 $3,394.32

**Respond to EPA Generated Error Messages** ~ No n - ARP Sources in PM/O 3 and PM Only State s (facilities) 4 8 12 $797.72 242 2,904 $193,048.24

~ Non

- ARP Sources in O 3 Only State s (facilities) 4 8 12 $797.72 11 132 $8,774.9229DRAFTSupportingStatementICRJune30,2008Page29

**Debug Com puter Software**  ~ Non

- ARP non

- NBP Sources in PM/O 3 and PM On ly State s (facilities) 16 88 104 $6,438.88 104 10,816 $669,643.52

~ Non

- ARP non

- NBP Sources in O 3 Only State s (facilities) 16 88 104 $6,438.88 1 104 $6,438.88

(cont.)

**Table 6**
**- 2**  **Annual Industry Respondent Burden and Cost by Activity, 2009 an d subsequent years (cont.)** 

**Inform ation Collection**  **Activity Respondent**  **Labor Cost/Year**  **2009 Annual Capital**  **Manager $83.43**  **Per Hour (2009)**  **Technical**

**$58.00 Per Hour**  **(2009) Respondent** 

**Hours/Year 2009**  **Startup Costs**  **2009 O&M** 

**Cost 2009**  **Num ber of** 

**Respo ndents**  **2009 Total** 

**Hours/ Year**  **2009 Total** 

**Cost/Year 2009**  **Debug Com puter Software (cont.)**  ~ Non

- ARP NBP Sources in PM/O 3 and PM Only State s (facilities) 1 4 5 $315.43 138 690 $43,529.34

~ Non

- ARP NBP Sources in O 3 Only State s (facilities) 1 4 5 $315. 43 10 50 $3,154.30

**Certify Monitors ~ Non** 
**- ARP Sources in PM/O**  **3 and PM Only**  **State s** 30DRAFTSupportingStatementICRJune30,2008Page30

a. Solid Fuel: SO 2 , NO x , and Flow CEMS (units) 15 48 63 $4,035.45 $2,800 10 630 $68,354.50

b. Gas

- Oil : NO x CEMS and Appendix D fuel mo nitoring (units) 10 3 2 42 $2,690.30 $2,800 49 2,058 $269,024.70

c. Gas

- Oil Peaking Units: Appendix D fuel sampling, Appendix E, or LME methods (units) 8 24 32 $2,059.44 $10,000 15 480 $180,891.60

(cont.) **Table 6**
**- 2**  **Annual Industry Respondent Burden and Cost by Activity, 2009 and subsequent years (cont.)**

**Inform ation Collection**  **Activity Respondent**  **Labor Cost/Year**  **2009 Annual Capital**  **Manager $83.43**  **Per Hour (2009)**  **Technical**

**$58.00 Per Hour**  **(2009) Re**  **spondent**

**Hours/Year 2009**  **Startup Costs**  **2009 O&M** 

**Cost 2009**  **Num ber of** 

**Respondents 2009**  **Total**

**Hours/ Year**  **2009 Total** 

**Cost/Year 2009**  **Certify Monitors (cont.) ~ Non** 
**- ARP Sources in O**  **3 Only**  **State s** 

a. Solid Fuel: NO x , and Flow CEMS (units) 10 32 42 $2,690.30 $2,800 1 42 $5,490.30

b. Gas

- Oil : NO x CEMS and Appendix D fuel mo nitoring (units) 10 32 42 $2,690.30 10 3 126 $8,100.9031DRAFTSupportingStatementICRJune30,2008Page31

c. Gas

- Oil Peaking Units: Appendix D fuel sampling, Appendix E, or LME methods (units) 8 24 32 $2,059.44 8 0 0 $0.00

**Perform QA Testing and Maintenance**  **~ Non**
**- ARP Sources in PM/O**  **3 and PM Only**  **State s**  a. Solid Fuel: SO 2 , NO x , and Flow CEMS (units) 50 600 650 $38,971.50 31,200 102 66,300 $7,157,493.00

b

. Gas

- Oil : NO x CEMS and Appendix D fuel mo nitoring (units) 20 375 395 $23,418.60 $17,400 493 194,735 $20,123,569.80

(cont.) **Table 6**
**- 2**  **Annual Industry Respondent Burden and Cost by Activity, 2009 and subsequent years (cont.)**

**Inform ation Collection**  **Activity Respondent**  **Labor Cost/Year**  **2009 Annual Capital**  **Manager $83.43**  **Per Hour (2009)**  **Technical**

**$58.00 Per Hour**  **(2009) Respondent** 

**Hours/Year 2009**  **Startup Costs**  **2009 O&M** 

**Cost 2009**  **Num ber of** 

**Respondents 2009**  **Total**

**Hours/ Year**  **2009 Total** 

**Cost/Year 2009**  **Perform QA Testing and Maintenance (cont.)** 

c. Gas

- Oil Pe aking Units: Appendix D fuel sampling, Appendix E, or LME methods (units) 5 30 35 $2,157.15 $1,800 150 5,250 $593,572.5032DRAFTSupportingStatementICRJune30,2008Page32

**~ Non**
**- ARP Sources in O**  **3 Only**  **State s** 

a. Solid Fuel: NO x , and Flow CEMS (units) 40 400 440 $26,537.20 $20,800 4 1,760 $189,34 8.80

b. Gas

- Oil : NO x CEMS and Appendix D fuel mo nitoring (units) 20 375 395 $23,418.60 $17,400 28 11,060 $1,142,920.80

c. Gas

- Oil Peaking Units: Appendix D fuel sampling, Appendix E, or LME methods (units) 5 30 35 $2,157.15 $1,800 0 0 $0.00

**Assure Data Quality, Prepare Reports, Subm it Reports**  ~ Non

- ARP Sources in PM/O 3 and PM Only State s (facilities) 16 42 58 $3,770.88 242 14,036 $912,552.96

(cont.) **Table 6**
**- 2**  **Annual Industry Respondent Burden and Cost by Activity, 2009 and subseque nt years (cont.)** 

**Inform ation Collection**  **Activity Respondent**  **Labor Cost/Year**  **2009 Annual Capital**  **Manager $83.43**  **Per Hour (2009)**  **Technical**

**$58.00 Per Hour**  **(2009) Respondent** 

**Hours/Year 2009**  **Startup Costs**  **2009 O&M** 

**Cost 2009**  **Num ber of** 

**Respondents 200**  **9 Total** 

**Hours/ Year**  **2009 Total** 

**Cost/Year 2009**  **Assure Data Quality, Prepare Reports, Subm it Reports (cont.)**  ~ Non

- ARP Sources in O 3 Only State s (facilities) 16 42 58 $3,770.88 11 638 $41,479.6833DRAFTSupportingStatementICRJune30,2008Page33

~ Year end compliance activities (facilities) 2 0 2 $166 .86 1,161 2,322 $193,724.46

~ Allowance Transfers 1 1 2 $141.43 7,500 15,000 $1,060,725.00 **TOTAL 388,465**  **$50,845,155**