1

Supporting Statement

for

Information Collection Request

Clean Air Interstate Rule to Reduce Interstate Transport of Fine 

Particle Matter and Ozone (Renewal)

EPA ICR 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 Agency
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1. IDENTIFICATION OF THE INFORMATION COLLECTION

1(a) Title of the Information Collection

Clean Air Interstate Rule to Reduce Interstate Transport of Fine Particle Matter and Ozone, 

ICR Number 2152.03, OMB Number 2060-0570.

1(b) Short Characterization/Abstract

In 2005, the United States (U.S.) Environmental Protection Agency (EPA) promulgated a 

the Clean Air Interstate Rule (CAIR) to Reduce Interstate Transport of Fine Particle Matter and 

Ozone. CAIR combined its reporting requirements with existing requirements from the 

Consolidated Emissions Reporting Rule (CERR), the Emission Reporting Requirements for 

Ozone State Implementation Plan (SIP) Revisions Relating to Statewide Budgets for NOx

Emissions to Reduce Regional Transport of Ozone (NOx SIP Call) and the Acid Rain Program 

(ARP) under Title IV of the CAA Amendments of 1990. These other requirements have

approved ICRs in place. CERR is covered under OMB Control Number 2060-0088, and the 

ARP is covered under OMB Control Number 2060-0258. The ICR Emission Reporting 

Requirements for Ozone State Implementation Plan (SIP) Revisions Relating to Statewide 

Budgets for NOx Emissions to Reduce Regional Transport of Ozone (NOx SIP Call), OMB 

Control Number 2060-0445) expires at the end of 2008. Sources previously subject to the NOx 

SIP Call requirements are now covered under CAIR.

This supporting Statement and ICR is being submitted to account for the incremental 

burden associated with CAIR. As such, this supporting Statement references the burden analysis 

included in the ICRs for CERR (2060-0088) and ARP (2060-0258) and estimates the change in 

burden resulting from CAIR beyond the scope of these ICRs. 

This ICR details the additions and changes to reporting requirements associated with 

CAIR. These changes can be logically divided into two categories: 1) changes to existing 

requirements for emission reporting under the CERR; and 2) the addition of reporting 

requirements to support emissions trading in States using the CAIR model cap and trade rules. 

Throughout this Supporting Statement, the burden analysis associated with these two categories 

will be discussed sequentially as "Emission Reporting Requirements" and "Emission Trading 

Requirements." 

Emission Reporting Requirements

The existing emissions reporting requirements under the CERR are already rather 

comprehensive. First, in Arkansas, Florida, Iowa, Louisiana, Mississippi, and Wisconsin, which 

we have determined make significant contributions to ozone nonattainment in another State but 

are not among the 21 States subject to the NOx SIP Call, the required emissions reporting will be 

expanded to match those of the NOx SIP Call States. The change requires that those States report 

NOx emissions during the five-month ozone season, in addition to the existing requirement for 

reporting emissions for the full year. This new requirement begins with the triennial inventory

year prior to the CAIR implementation date. This will be the 2008 inventory year, the report for 

which will be due to EPA by June 1, 2010. By combining the SIP Call and CAIR emission 
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reporting, this ICR now accounts for the ozone season emissions reporting by all 28 States and 

the District of Columbia.

Second, under the existing CERR, yearly reporting is required only for sources whose 

emissions exceed specified amounts. Under CAIR, the 23 States and the District of Columbia 

subject to CAIR for reasons of PM2.5 must report to EPA each year a set of specified data 

elements for all sources subject to new controls adopted specifically to meet the CAIR 

requirements related to PM2.5, unless the sources participate in an EPA-administered emissions 

trading program. This is like the every-year reporting requirement for controlled sources under 

the NOx SIP Call, but covering SO2 in addition to NOx and covering the whole year - since the 

PM2.5 NAAQS at issue is the annual NAAQS - rather than only the ozone season. This rule 

could increase the number of sources for which States must submit reports each year rather than 

only every third year, if a State chooses to control non-EGU sources under CAIR or if the State

does not join the EPA trading programs for EGUs. This new requirement will begin with the 

2009 inventory year, the report for which will be due to EPA by June 1, 2011. After the 2009 

reporting year, this new requirement will have no effect on States that fully comply with CAIR

by requiring their EGUs to participate in the EPA model cap-and-trade programs.

Emission Trading Requirements

For this ICR, it is assumed that each State will adopt the relevant CAIR SO2, annual NOx

and ozone season NOx model trading rules, and the burden associated with these programs is 

evaluated. The trading programs include paperwork burden related to: 1) transferring and 

tracking allowances; 2) allocation of allowances to affected units; 3) permitting; 4) annual year 

end compliance certification; and 5) monitoring and reporting. The monitoring and reporting 

requirements of the trading programs will require capital and labor expenditures by industry, and 

these are evaluated.

As with the Acid Rain Program and the NOx SIP Call, the ability to buy and sell (or 

transfer) allowances is expected to 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 are 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 units are required to have 

CAIR requirements integrated into their Title V permits for the affected source and to certify that 

an approved SO2 and NOx emissions monitoring system 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 emissions 

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.
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Emissions monitoring and reporting by sources in the cap and trade program is 

fundamental to the allowance trading system. 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 system 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, affected units are required to: 1) submit a monitoring plan and 

certification reports for each monitoring system; 2) record hourly emissions data; and 3) submit 

reports of their emissions and operating data to EPA. Sources with monitors already certified 

under 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 ICR addresses the specific burdens associated with meeting those revised Part 75 

requirements. In large part, these revisions support EPA's modernization of electronic reporting 

under Part 75, through the new Emission Collection and Monitoring Plan System (ECMPS). 

While the ICR estimates a one-time burden of understanding and implementing the new rules, in 

the longer term, EPA believes the new system will streamline the reporting process. EPA has not 

yet accounted for any reduced burden in this ICR, but intends to use the 2009 through 2011 

implementation period to evaluate whether the reporting burden estimates in this ICR (and the 

Acid Rain Program ICR) should be modified based on reporting through ECMPS.

All participants in the allowance transfer system are required either to complete and 

submit an allowance transfer form for each allowance transfer or to perform the transfer on-line. 

Participants in the transfer system 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 establish accounts in the allowance tracking systems. For sources affected by

CAIR, allowance transfers currently conducted under the Acid Rain and NOx SIP Call Programs 

will occur in the context of the CAIR Trading Program starting in 2009 for the ozone season NOx

programs and 2010 for the SO2 annual program. The only additional transfers as a result of 

CAIR will occur under the annual NOx 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 

completeness 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 emissions 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 include 
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provisions for periodic reports identifying 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 sections 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 States with 

ozone nonattainment areas to submit a current inventory of actual emissions of VOC, NOx, and 

CO every three years. Section 187(a)(5) requires a similar 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 discretionary authority to require other emissions data as deemed necessary

for State Implementation Plan (SIP) development in nonattainment areas to meet the NAAQS. In 

1998, EPA promulgated the NOx SIP Call which required the affected States and the District of 

Columbia to submit SIP revisions providing for NOx 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 requirements to be included in 

the SIP revisions required under that action. The CERR emissions reporting requirements were

promulgated by EPA in 2002, and are codified at 40 CFR part 51 subpart A (67 FR 39602, June 

10, 2002). These requirements replaced the requirements previously contained in subpart Q, 

expanding their geographic and pollutant coverages while simplifying them in other ways.

The CAIR rulemaking consolidated two sections of title 40 of the CFR that contain 

emissions reporting requirements applicable to States (subpart A of part 51 (the CERR) and 

section 51.122 in subpart G of part 51 (the NOx SIP Call reporting requirements)) and 

incorporated some modifications. The emissions reporting requirements for CAIR 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 CAIR. 

Under the CAIR requirements in section 51.125, every year States must report to EPA, 

both the annual emissions of NOx and SO2 and the ozone season (May 1 through September 30) 

emissions of NOx from sources that the State has determined to be subject to the emissions 

control requirements of CAIR. The affected States are also required to report ozone season 

emissions and typical summer daily emissions of NOx from all sources every third year (2011 is 

the next reporting year). The reports are due to EPA on December 31 of the calendar year 

following the inventory year. The emissions reporting requirements affect the District of 

Columbia and the 28 States affected by CAIR.

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 carrying out a variety of activities. These activities support regulatory functions as 
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well as functions that are more programmatic in nature such as trends analyses. Such projects 

include:

● Evaluation of existing control strategies, such as CAIR, for States and larger areas;

● Evaluation of proposed control strategies for States and larger areas, including 

applications of regional scale models;

● Development of national control strategies and preparation of Regulatory Impact 

Analyses (RIA);

● Preparation and publication of national summaries of emissions including trend analyses;

● 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 SO2 emissions. 

This report is required by Section 406 of the CAA and is due on a five-year cycle that 

began on January 1, 1995. The report must contain an inventory of national annual SO2

emissions from industrial sources (as defined in Title IV 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 analyses of the impact of new or modified 

sources within an area. EPA's Emission Factor and Inventory Group (EFIG) use the data to 

assess and analyze 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. Typically this is 

done under the Freedom of Information 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 nonattainment areas for certain criteria air 

pollutants is necessary to comply with requirements specified in Title I of the CAA. States with 

nonattainment areas rely on current information for point, nonpoint, and mobile sources to revise 

their SIPs and to plan for emission reductions mandated by the CAA. In addition, a Statewide 

inventory compiled at least every three years for all point, nonpoint, and mobile sources is 

considered to be a key tool to assist States in meeting CAA requirements that address emissions 

tracking, compliance issues, and mid-course adjustments. Statewide emission inventories can be 

used by States affected by pollution transport from upwind areas to develop more efficient 

control strategies to meet the NAAQS. Statewide emission inventories that were developed by

EPA (the NEI) are being used by the Regional Planning Organizations (RPOs) as the starting 

point for the development of Statewide emission inventories used in the regional haze program to 

define control strategies.
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Emission Trading Requirements

Permit applications, including proposed compliance plans, will be used by States and 

EPA to issue operating permits and to allocate allowances. A permit application is legally

binding on the owners, operators, and designated representative 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 States 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 States 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.

Information collected on allowance transfers is used by EPA or its designated agent to 

track allowances for the purpose of determining compliance with the NOx and SO2 Trading 

Programs. Information on allowance transfers is also used by participants in the allowance 

market and the public to evaluate the activities of affected sources, and by EPA for program 

evaluation.

Together, the allowance trading system, operating permits, and emissions data helps to 

provide the accountability needed so that the NOx and SO2 Trading Programs can function 

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 States. Also, direct reporting will avoid duplication of effort for sources subject to the 

Part 75 requirements.

Emission Trading Requirements

Reporting requirements for affected sources for the CAIR NOx and SO2 Trading 

Programs are integrated with existing Part 75 reporting formats. The reporting formats are 
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currently used by Acid Rain Program units under Title IV of the Act and through 2008 are being 

used by units subject to the NOx SIP Call Trading Program implemented under Title I of the Act. 

Thus, for units subject to Acid Rain or the CAIR quarterly reporting requirements, or both, only

one submission will need to be made on a quarterly basis. Starting in 2009, CAIR reporting 

replaces NOx SIP Call trading program reporting.

3(b) Public Notice Required Prior to ICR Submission to OMB

An announcement of the public comment period for this ICR renewal was published in 

the Federal Register (73 FR 24973) on May 6, 2008. In addition, all documents associated with 

this ICR renewal are accessible on www.regulations.gov, under Docket # EPA-HQ-OAR-2006-

0947 and Docket # EPA-HQ-OAR-2008-0317. No comments were received in response to this 

ICR renewal.

 

3(c) Consultations 

Emission Reporting Requirements

During the development of emission reporting requirements for CAIR discussions were

held with STAPPA/ALAPCO 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. In 

addition, EPA holds bimonthly consultations with STAPPA as well as monthly monitoring 

conference calls with states, and the CAIR rule and related issues are an important component of 

those consultations and meetings. 

Emission Trading Requirements

The requirements for the CAIR Trading Programs have been developed using both the 

methodology found in existing trading programs as well as consultations with interested parties. 

EPA built on the cap and trade strategy used in the Acid Rain Program, Ozone Transport 

Commission's NOx Budget Program, and the NOx SIP Call.

EPA held two workshops with States in the NOx SIP Call or OTC programs to discuss 

lessons learned in those programs. Additionally, EPA has had frequent interaction with affected 

sources and States in the course of implementing the Acid Rain and NOx SIP Call Trading 

Programs. EPA has received comments following the workshops and through these less formal 

interactions and considered and incorporated those comments into the final CAIR rule package. 

Recently, EPA has held numerous consultations with stakeholders as EPA implements the new 

data system (ECMPS) that will support Part 75 reporting as of January 1, 2009. EPA has also 

held stakeholder workshops on CAIR implementation. EPA has considered and accounted for 

those interactions in preparing this renewal ICR.

Finally, as part of updating the previous ICR for the Acid Rain Program (Part 75) 

monitoring requirements, EPA contacted various affected parties to gather information on CEM 
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capital costs, CEM operation and maintenance costs, fuel meter capital costs, and 

CEM/fuelmeter testing costs. That information has been used in this ICR 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 Statewide inventory compiled at least every three years for all point, 

nonpoint, and mobile sources is considered important to assist States in meeting various CAA 

requirements.

If the information collection were not carried out every three years for all sources and 

annually for major point sources, the EPA would not be able to maintain a central, 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 SO2 and NOx budgets, EPA would not be able to verify that emission reductions 

necessary to meet each State's SO2 and NOx emission budgets were being achieved.

In addition, a triennial report of all NOx sources Statewide is vital in enabling EPA to 

track States' progress towards meeting the NOx budgets. Because the SO2 and NOx budgets 

prescribed have been deemed essential in order for downwind States 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. If this information collection were not carried out annually for 

sources being controlled to meet the SO2 and NOx budgets, EPA would not be able to verify that 

emission reductions necessary to meet each State's SO2 and NOx emission budgets were being 

achieved. Because the SO2 and NOx budgets prescribed have been deemed essential in order to 

aid downwind States 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 systems, 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. Less frequent 

collection, such as semi-annually or annually, would increase the amount of preparation and 

review time at the end of the reporting period both for regulated sources and for EPA. This 

would slow down the process for the verification of compliance.
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3(e) General Guidelines

This ICR 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 treated 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 be identified as sensitive by a State and are then treated as "Statesensitive" by EPA. The potentially State-sensitive items include the following: Process rate, 

boiler design capacity, emission estimation codes, percent space heat, operating rate, and 

maximum operation rate/hour. Where Federal and State requirements are inconsistent, EPA 

Regional Office should be consulted for final reconciliation.

3(g) Sensitive Questions

This information collection does not ask any questions concerning sexual behavior or 

attitudes, religious beliefs, or other matters usually considered private.

4. THE RESPONDENTS AND THE INFORMATION REQUESTED

4(a) Respondents/Standard Industrial Classification (SIC) Codes

Emission Reporting Requirements

The emissions data required by the rule will generally be submitted by State air pollution 

control agencies. Under the CERR, there are 55 State and territorial air pollution control 

agencies, as well as 49 local air agencies that will be subject to the national reporting 

requirements and will be required to compile and report emissions information for large 

stationary point sources on an annual basis, and for smaller point sources, stationary nonpoint 

and mobile sources on a three-year basis. CAIR requires 28 States and the District of Columbia 

to report NOx and SO2 emission related data on an annual and triennial basis. Those States 

subject to CAIR for reasons of PM2.5 and/or ozone must report to EPA each year a set of 

specified data elements for all sources subject to new controls adopted specifically to meet the 

CAIR requirements related to PM2.5 and/or ozone, unless the sources participate in an EPAadministered emissions trading program. The affected SIC code would be 9511 - Air and Water 

Resource and Solid Waste Management, which includes governmental environmental protection 

and control agencies, and pollution control agencies. Because all 28 States and Washington D.C. 

intend to use the trading program, no burden is associated with this requirement. 

Emission Trading Requirements

This ICR also estimates a burden for affected industry sources to monitor SO2 and NOx

mass emissions and demonstrate compliance with SO2 and NOx control measures. Sources may
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report data directly to EPA if a source is required to meet the monitoring and reporting 

requirements of Part 75. All affected States and Washington D.C. have chosen to control large 

electric utility sources to comply with their SO2 and NOx emissions budgets. Electric utility

combustion sources are generally classified as either SIC 4911 - Electric Services, or 4931 -

Electric and Other Services Combined [NAICS 221112 Electric Power Distribution]. In

addition, the NOx SIP Call trading program affected combustion sources across many industrial 

sectors. States previously subject to that trading program have the option to keep those sources 

in the CAIR ozone season NOx program, and many States have elected to do so. Those sources 

include a wide range of SIC [NAICS] codes, including cement kilns, which fall primarily under 

SIC 327 - Concrete, Gypsum, and Plaster Products) [NAICS 3273 Cement Manufacturing and 

3274 Gypsum Product Manufacturing] and large industrial combustion sources (e.g., boilers, 

turbines, and internal combustion engines), which are expected to fall under SIC codes for the 

manufacturing sector, i.e., SIC Major Groups 29-40 [NAICS 31-33 Manufacturing].

4(b) Information Requested

Emission Reporting Requirements

The CERR and NOx SIP Call established the basic emission reporting requirements. 

CAIR changes some of these requirements such that the previously accounted for reporting 

burden also changes. Only the changes to the CERR and NOx SIP Call reporting requirements 

that would change reporting burden are discussed here.

Respondent activities

For the emission inventory reporting requirements of CAIR, respondent activities are very

similar to what has been required to satisfy reporting under CERR and the NOx SIP Call. The 

specific State respondent activities associated with CAIR that are changes from the existing 

CERR requirements include a triennial State reporting burden. This ICR includes estimates for 

the incremental burden across all CAIR affected States and Washington D.C., including those 

previously subject to the NOx SIP Call reporting requirements.

The one-time State burden items include reading 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 ICR. This section 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 tracking activities. First, the affected 

source must submit account certificates of representation for the CAIR designated representative 
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and (if desired) alternate CAIR designated representative. This documentation, the requirement 

for which is found in 40 CFR 96.113, .213 and .313, must include:

● Identification of the source and unit;

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

● Name and contact information for the CAIR designated representative and alternate;

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

● A certification Statement and signature of the CAIR designated representative and 

alternate.

Certification applications are to be kept for a period of five years pursuant to the general 

requirements 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 nonTitle V source could be affected under the CAIR Trading Program, all affected sources are 

assumed to be Title V sources for purposes of this ICR. Except for the permit revision 

application, all of the other monitoring, reporting or recordkeeping requirements 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 years pursuant to Title V 

recordkeeping requirements. In 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 CAIR 

compliance strategy. For this ICR, most of this burden was expected to occur prior to the end of 

2008. During the 2009-2011 period, this ICR estimates that only a small percentage of sources 

will still have to go through the permitting process as a result of CAIR. 

(c) Monitoring and Reporting

Affected trading program sources are required to monitor SO2 and NOx mass emissions, 

and record and report emissions data using the requirements of 40 CFR Part 75. The emissions 

monitoring requirements specify that affected sources must: 1) submit a monitoring plan for 

each affected unit at a source; 2) submit data for certification of each monitor; and 3) record 

hourly operational, pollutant monitor, and flow monitor data for each affected unit and submit 

quarterly reports of their emissions data to EPA.

Respondents are required by 40 CFR 75.64 to submit the quarterly SO2 and NOx mass 

emissions data electronically, by direct electronic submission to EPA, and must also include a 

certification Statement by the designated representative of the unit. All monitoring records are to 

be kept for three years, with one possible exception under a voluntary option for fuel flowmeter 

calibration testing.
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(ii) Respondent Activities

The primary tasks that will be performed by trading program respondents to meet the 

emissions monitoring requirements are: 1) completing and submitting 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 generally 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. In 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 occur prior to 2009 but this ICR 

continues to include annualized costs for sources that are likely to have incurred these 

expenditures through 2008.

5. THE INFORMATION COLLECTEDBAGENCY ACTIVITIES, COLLECTION 

METHODS, AND INFORMATION MANAGEMENT

5(a) Agency Activities

Emission Reporting Requirements

The EPA activities associated with the rule include:

● Receiving, reviewing, and storing emission inventory data submitted by each State;

● Processing and updating data submitted by States, including performing quality assurance 

of data, and coordination of efforts to resolve errors and anomalies; and

● Fulfilling information requests.

Emission Trading Requirements

The major EPA activities related to the CAIR Trading Program include: (1) maintenance 

and administration of the SO2 and NOx allowance tracking systems, (2) reviewing permit 

applications, (3) reviewing 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 

emissions data submitted to track each State's progress toward meeting its budgets and creating a 

summary report of emissions. EPA will use a computer system to track and maintain monitoring 

and emissions information. EPA will also answer respondent questions and conduct audits of 

data submissions.

5(b) Collection Methodology and Management

Emission Reporting Requirements
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The EPA has established a central repository of inventory data for all States termed the 

National Emissions Inventory (NEI) database. Emissions inventory data reported electronically

will be stored in the NEI database and used by the EPA and by other States for air modeling, 

tracking progress in meeting CAA requirements, setting policy, and answering questions from 

the public.

The EPA has created and maintains the NEI database as a central repository of inventory

data for all States, but the data must be supplied by the States in electronic form. The EPA 

currently requires that States use the NEI Input Format (NIF) for electronic data reporting (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 used for Part 75 reporting be used to submit the information collected for the CAIR 

Trading Programs.

Several computer systems and associated databases have been developed to (1) track 

allowances, (2) record quarterly emissions monitoring data, and (3) calculate the number of 

allowances to be deducted each year. The systems and databases are designed to coordinate the 

information for easy access and use by the Agency, States, regulated community, and the public. 

Beginning with the first quarter of 2009, all industry sources must use the Emissions Collection 

and Monitoring Plan System (ECMPS) to submit monitoring plan, quality assurance, certification

test, and emissions data to EPA for the Acid Rain and CAIR programs.

The EPA also has established a Clean Air Markets Page on the Internet, which includes 

detailed information collected from emissions reports. Those without access to the Internet may

use the Clean Air Markets Hotline to request information, including summary reports. The 

Agency expects to rely on these electronic means to disseminate information about the CAIR 

Trading Programs as the programs are implemented.

5(c) Small Entity Flexibility

Emission Reporting Requirements

State and territorial 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. However, 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 CAIR Trading Program includes fossil fuel-fired units (stationary boilers, 

combustion turbines, and combined cycle systems) that serve an electrical generator 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 CAIR Trading Programs 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 NOx annually

provided that no more than 50 tons of NOx is emitted in the ozone season (May 1 - September 

30) and no more than 25 tons of SO2 annually and that calculate no more than the same amount 

based on specified procedures for calculating 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. 

Moreover, emissions reporting requirements are significantly simplified for these units.

Even if a gas- or oil-fired unit does not qualify for the "low mass emissions unit"

provisions, the monitoring provisions of Part 75 do allow for the use of alternative methods to 

determine emissions. As discussed in the Regulatory Impact Analysis (RIA) of the final Acid 

Rain Implementation Regulations (October 19, 1992), smaller utilities are more likely to be 

dependent on these oil- and gas-fired units, especially very small utilities (see p. 5-14 of that RIA 

document). This analysis remains relevant under CAIR.

5(d) Collection Schedule

Collection frequency under CAIR will be on a quarterly, annual, and triennial basis. All 

affected industry sources will use ECMPS to submit monitoring plan, quality assurance, 

certification test, and emissions data to EPA on a quarterly basis. In addition, CAIR requires the 

collection of allowance trading and emissions information on an annual basis and the collection 

of a Statewide inventory of NOx sources every three years. 

6. ESTIMATING THE BURDEN AND COST OF THE COLLECTION

6(a) Estimating Respondent Burden

Emission Reporting Requirements

The respondent burden for complying with the reporting requirements of the rule is 

estimated incremental to the burden associated with existing annual inventory and periodic 

inventory reporting requirements. 

In general, States already have mechanisms in place for reporting emissions data to EPA 

under the existing CERR and NOx SIP Call inventory requirements, particularly for those States 

previously subject to the NOx SIP Call (the requirements of which are covered by CAIR starting 

in 2009). The changes to the existing reporting requirements are specified in Section 4(b)(i) of 

this supporting Statement. 
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 emissions 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 Statement estimates burden using methods similar to the ones used for 

the CERR and the NOx SIP Call. As Stated in 40 CFR §51.125(b)(2), each State must provide 

triennial reports of SO2 and NOx emissions data from all affected sources within the State. The 

CAIR reporting requirements necessitate the estimation and reporting of annual NOx and SO2

emissions in 2011 for all States subject to CAIR for purposes of ozone and PM2.5. For States 

subject to CAIR for purposes of ozone nonattainment, respondents must also submit ozone 

season and daily NOx emissions data from all affected sources. For these States, EPA estimates 

that each respondent would spend 24 hours of technical staff time and one hour of managerial 

staff time. The following sections discuss the assumptions used to develop burden hour 

estimates for one-time only activities and triennial activities. Table 6-1 lists the burden items 

included under these categories, and presents their associated burden hours for one year. In 

general, managerial 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 year, during these years. Table 6-3 presents the State

and local respondent annual burden hours and costs by activity. 

The time for States, territorial, and local agencies to read and interpret the reporting 

requirements of the rule was estimated to be one hour for technical staff and one hour for 

managerial staff. 

Emission 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), 

year-end compliance certifications, submittal of monitoring plans, obtaining certification of each 

monitoring system, conducting monitor quality assurance activities, and recording and reporting 

data from CEM systems (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 under the NOx SIP Call and the Acid Rain Program. 
16

For the purposes of this analysis, the trading sources are grouped into the following 

categories:

● Acid Rain Program units located in any CAIR-affected State;

● Trading units (non-Acid Rain) located in a PM/O3 State (AL, FL, IA, IL, IN, 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

● Trading units (non-Acid Rain) located in an O3-only State (AR, CT, DE, MA, and NJ).

Note that for certain collection activities, the burden is calculated separately for sources 

located in the NOx SIP Call region in order to account for the fact that these sources are already

familiar with the reporting requirements. The NOx SIP Call Program, a region wide cap-andtrade program that phases out at the end of 2008, targeted utility and large industrial combustion 

sources to facilitate NOx emissions reductions in the NOx SIP 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 NOx SIP 

Call States in the CAIR region include Alabama, Connecticut, Delaware, Illinois, Indiana, 

Kentucky, Maryland, Massachusetts, Michigan, Missouri, New Jersey, New York, North 

Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia, as well as

the District of Columbia.

The CAIR Trading Program requires all affected sources to monitor NOx and SO2

emissions, SO2 emission rate, and heat input in order to determine NOx mass emissions and SO2

mass emissions. Coal-fired units use an SO2, NOx, and flow CEMS to meet those requirements. 

Oil and gas units have some alternatives. For SO2, these units can use fuel sampling and analysis 

(or an SO2 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 

NOx emission rates. EPA will also allow certain low mass emissions units to use assumed 

emissions factors together with operational data to calculate NOx and SO2 emissions.

For purposes of this ICR, 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, represent 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 NOx

SIP Call, this ICR incorporates the burdens previously accounted for in the ICR under that 

program. In addition, this ICR 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 Standard). As such, the weighting is a conservative estimate.

The following discussion highlights some of the basic differences for the categories of 

units. Included in this discussion is the consideration of monitoring and reporting activities that 

are currently completed by many of these sources under the Acid Rain Program.

Trading units subject to the Acid Rain Program that are located in a CAIR State will have 

the smallest overall impact with regard to monitoring and reporting. Aside from a small burden 
17

associated with DAHS upgrades (for those not previously subject to the NOx SIP Call), Acid 

Rain Program-affected units already monitor and report both SO2 mass emissions and NOx

emission rates on a year round basis and will not incur additional burdens (or capital and 

operating and maintenance costs) as a result of CAIR 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 CAIR State will 

incur the largest impact with regard to monitoring. For the CAIR ozone season program, this 

ICR incorporates the monitoring burdens previously accounted for under the NOx SIP Call ICR 

(ICR Number 1857.03). For the CAIR annual NOx and SO2 programs (in States not previously

covered by the SIP Call or in the CAIR ozone season program), sources are currently not 

required to monitor according to Part 75. These sources will need to monitor and report NOx

emissions during the O3 season and on an annual basis as well as SO2 on an annual basis. The 

burdens will be less in States that are subject only to the CAIR ozone season NOx program. 

These units will also have additional burden associated with permit applications and certain 

allowance transactions. Monitoring will depend on the type 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 applied to the unit under the NOx SIP 

Call.

Sources are subject to the CAIR Trading Programs NOx monitoring and reporting 

requirements in 2008 and the SO2 monitoring and reporting requirements in 2009. Compliance 

with the emissions caps, along with allowance holding requirements, begins in 2009 for NOx and 

2010 for SO2. Table 6-4 shows the burden associated with monitoring SO2 and NOx under the 

CAIR trading programs at the various types of sources.

The primary tasks performed by owners and operators of affected units are: 1) 

permitting; 2) monitoring, recording, and reporting emissions data; 3) allowance trading 

activities; and 4) submittal of the year end compliance certification.

(i) Permitting

Each affected entity will have to submit a permit revision application to include in the 

source's Title V permit the necessary conditions related to compliance with the CAIR Trading 

Programs. The Agency included the burden for this application process in the 2006-2008 time 

period. For this renewal ICR, 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 reference 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 facilities, 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 was 
18

previously accounted for in the 2006 through 2008 time period, and EPA estimates that 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 type 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 large 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 NOx SIP Call, CAIR 

imposes no start-up burdens beyond existing programs. There will be a small burden associated 

with DAHS upgrades for those ARP units not previously affected by the NOx SIP Call. For the 

non-Acid Rain units, the burdens reflect arranging for SO2 and NOx CEMS purchase (as 

required) and oversight of the certification process. The non-Acid Rain units in O3-only States

would need to purchase and certify only NOx monitoring systems. In the 2009 through 2011 time 

period, EPA anticipates that purchase and certification has already occurred for all NOx and SO2

systems. During this period, only new units will need to go through this process. Some units 

will also have to recertify their systems. Because capital costs are annualized in prior ICRs (see 

ICR 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 nonAcid Rain units in O3-only States, will incur an insignificant certification cost increase due to the 

air emission test body competency requirements affecting RATAs, site-specific NOx LME tests, 

and Appendix E tests.

Regulatory Review. The ICR includes an allocation of time for the managerial and 

technical staff to review the regulatory requirements and the reporting formats and instructions. 

Units not in the Acid Rain Program that were also not previously affected under the NOx SIP 

Call, will have a burden similar to that estimated for Acid Rain Program units in the Acid Rain 

Program ICR -- 24 hours of managerial time and 24 hours of technician time in year one of the 

program and four hours each for managerial and technician time, per year, after year one. The 

burden estimates for all Acid Rain units and units previously affected under the NOx SIP Call is 

reduced because of the similar Acid Rain and NOx SIP Call requirements. The estimates for 

these units are five hours of managerial time and five hours of technician time in year one and 

one hour each per year after year one.

Response 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 approximately four 

hours of managerial time and eight hours of technician time responding to these error messages 

each year. (The time for the other sources is accounted for in other ICRs.)

DAHS Debugging. Based on experience with the Acid Rain Program, some 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 or 
19

previously affected under the NOx SIP Call. Consistent with the existing Part 75 ICR, the 

Agency estimates that about 16 managerial and 88 technician hours will be spent on this task in 

the first year of implementation, and then one managerial and four technician hours will be 

required in the second and subsequent years 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. Initial certification burdens and costs for new 

monitoring equipment are addressed above under start-up activities since these costs are often 

part of the overall purchase expense for the equipment. For some non Acid Rain units, however, 

there will be burdens associated with certifying existing monitors used under other programs for 

this program, as well as burdens for recertification to the extent a change in a monitoring system 

requires recertification. EPA estimates that approximately ten percent of all units will have to 

recertify each year following the year in which the initial certification occurs. The ICR 

incorporates a labor burden estimate generally consistent with existing Agency models for the 

labor burdens associated with certification. However, note that the ICR reduces the labor hours 

for this activity to avoid double counting hours that are already accounted for in the quality

assurance activity 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 year in 

which the certification event occurs. Owners and operators of Acid Rain units, non-Acid Rain 

units, and non-Acid Rain units in O3-only States, will incur an insignificant certification cost 

increase due to the air emission test body competency requirements affecting RATAs, sitespecific NOx LME tests, and Appendix E tests.

Quality Assurance. Quality assurance (QA) activities and other routine maintenance for 

monitoring systems is the largest burden item under the CAIR Trading Programs. 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, including the existing Acid Rain Program 

ICR, the NOx SIP Call ICR 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 SIP 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 ICR, the 

labor burden 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 O3-only States, will incur an 

insignificant certification cost increase due to the air emission test body competency

requirements affecting RATAs, site-specific NOx LME 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 accompanying the quarterly

reports, and managerial review. The existing Acid Rain program ICR 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 ICR, it is assumed that the GCV 

data would be collected as part of standard business operating procedures to assure compliance 

with contractual specifications. Thus no additional fuel sampling burdens or costs should be 

incurred.

(iii) Allowance transaction activities

The Agency anticipates the average number of additional allowance transactions will be 

approximately 7,500 per year beginning in 2009. Since this ICR now covers the units and 

activities associated with the NOx SIP Call, this estimated number of transactions reflects the

incremental number of transactions previously estimated for units subject to CAIR 

(approximately 2,500) along with the number of transactions previously accounted for under the 

NOx SIP Call trading program (approximately 5,000 based on 2007 allowance transaction data). 

A portion of all units will likely conduct transactions in each year 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 Respondent 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 threeyear 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 ICR, the labor rate used for technical staff at State agencies is $37.73 per hour, 

and the labor rate for managerial employees 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 Statistics, website at 

http://stats.bls.gov/news.release/ecec.toc.htm. Wage and salary rates are given in Employee 

Costs for Employee Compensation "Table 3. State and local government, by major occupation 

and industry group (December 2007)." 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 $46,000 per year per respondent, and labor 

costs for local agencies are estimated to be $30,000 per year 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 NOx Budget Program ICR, adjusted for inflation using the Bureau of Labor 

Statistics Employment Cost Index.
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/08tables/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 Cost 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 estimated 

under the CERR are sufficient to accommodate the modest changes in reporting burden for 

CAIR. Therefore, no estimate of Capital and Operations and Maintenance Costs were made for 

this ICR.

Emission Trading Requirements

Capital/start-up costs include 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 

(QA) testing, and other direct maintenance-related expenses (e.g., spare parts and calibration 
22

gases). These cost estimates have been derived from EPA CEM cost models, existing ICRs, 

Agency staff experience under the Acid Rain and NOx SIP 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 items is estimated at $4,000 per 

unit for most Acid Rain units that are not in the NOx SIP Call region (to account for a DAHS 

upgrade to provide NOx mass reporting under Part 75, Subpart H). Most non Acid Rain units 

will require some combination of a NOx, diluent, SO2 and/or flow CEMS depending on the fuel 

type, whether the unit is an LME or peaking unit, and whether the source is subject to CAIR for 

PM2.5 and/or ozone. The costs for these units range from $15,000 to $192,000. The cost for an 

SO2 analyzer 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 relative 

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/recertification 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 as part of the annual quality assurance requirements or as 

part of recertification, industry contacts have indicated that RATA testing is usually performed 

under a fixed price contract basis, except for travel costs that may be billed on an hourly basis 

beyond the basic contract cost.

The Agency also notes that this ICR does not include a cost for the purchase of 

monitoring equipment for units. Many sources covered by the CAIR Trading Programs are 

already required to have CEMS under that program. Therefore, 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 ICR. 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 years. 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 ICR were annualized at 

a rate of seven percent (i.e., the annualized capital cost was calculated assuming money to 

purchase the capital 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 plus 
23

interest. The result is the annualized capital cost reported. The annualized cost of the necessary

capital purchases varies from $2,250 to $22,500, per year, per unit, depending on the type of 

monitoring methodology. Table 6-4 contains a breakdown of annual costs by monitoring 

methodology. 

6(d) Estimating the Respondent Universe and Total Burden and Costs

Emission Reporting Requirements

The number of respondents is estimated to be 29 States (including DC). See Table 6-1 

for the total number of hours and costs estimated for each respondent. 

Emission Trading Requirements

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 type of monitoring equipment will be 

less since many already have monitoring equipment under the Acid Rain Program. Table 6-1

provides 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 participating in the CAIR 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 Burden 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 $491,272
24

Industry Respondents 1,161 388,465 $50,845,155

6(f) Reasons for Change in Burden

The burden and cost is higher than the previous CAIR ICR (2152.02) because this ICR 

incorporates the burden associated with all CAIR-affected sources, including those located in 

NOx SIP Call States. The NOx SIP Call ICR (OMB Control Number 2060-0445) expires at the 

end of 2008. As such, starting in 2009, the burden associated with the NOx trading program 

requirements under the NOx SIP Call are now covered in this ICR. Without incorporating those 

burdens and costs, the overall labor burden in this ICR would be less than the estimate in the

prior version (2006-2008) of this ICR.

Emission Reporting Requirements

The net change in emission reporting burden as compared with the approved ICRs for the 

CERR is an increase of 120 hours (per respondent per year), which were included to account for

the preparation and submittal of the 2011 triennial report. The overall burden is higher than the 

previous ICR since all CAIR-affected States are now covered under this ICR. 

Emission Trading Requirements

The large burden associated with this rule is a result of the costs of monitoring, certifying, 

quality assuring and reporting emissions data from large electric generating units regulated under 

CAIR. The burden is significantly higher than the previous ICR since the NOx Budget Program 

will phase-out at the end of 2008 and the affected sources in all CAIR-affected States will be 

covered under CAIR starting in 2009. Affected sources for which the burden was previously

included in the NOx SIP Call ICR are now included in the burden estimate for this ICR. 

However, this burden is tempered by the integration of these monitoring and reporting 

requirements with those already required under the Acid Rain Program and those previously

required under the NOx SIP Call trading program. Otherwise, the burden would be higher.

6(g) Burden Statement

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

or for a Federal agency. This includes the time needed to review instructions; develop, acquire, 

install, and utilize technology and systems for the purposes of collecting, validating, and 

verifying information, processing and maintaining information, and disclosing and providing 

information; adjust the existing ways to comply with any previously applicable instructions and 

requirements; train personnel to be able to respond to a collection of information; search data 

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

the information. An agency may not conduct or sponsor, and a person is not required to respond 

to, a collection of information unless it displays a currently valid OMB control number. The 

OMB control numbers for EPA's regulations are listed in 40 CFR Part 9 and 48 CFR Chapter 15.
25

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

burden estimates, and any suggested methods for minimizing respondents burden, including 

through the use of automated collection techniques, to the Director, OPPE Regulatory

Information Division, U.S. Environmental Protection Agency (2137), 401 M St., S.W., 

Washington, DC 20460; and to Paperwork Reduction Project (OMB# 2060-0570), Office of 

Information and Regulatory Affairs, Office of Management and Budget, Washington, DC 20503, 

Attention: Desk Officer for EPA. Please include the EPA ICR number (2152.03), the EPA 

Docket ID Number (EPA-HQ-OAR-2006-0947 and EPA-HQ-OAR-2008-0317) and the OMB 

Control Number (2060-0570) in any correspondence.

Table 6-1

Annual State Respondent Burden and Cost by Activity, 2009 and Subsequent Years

Hours and Costs Per Respondent Total Hours and 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., 

monitoring 

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 $21,518 29 16,240 $624,048
26

D

RA

F

T

S

up

p

ortin

g

State

m

e

nt IC

R

Ju

n

e

3

0, 2

0

0

8

P

a

g

e

2

6

Table 6-2 

Annual Industry Respondent Burden and Cost by Activity, 2009 and subsequent years

Information 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

Number of 

Respondents

2009

Total 

Hours/

Year

2009

Total 

Cost/Year

2009

Title V permit 

application (facilities)

4 0 4 $333.72 116 464 $38,711.52 

Permit to Construct 

(units)

20 20 40 $2,828.60 7 280 $19,800.20 

Startup/ Capital Items

~ ARP Sources in PM and O3 States 

a. DAHS modification 

(facilities)

2 4 6 $398.86 $600.00 410 2,460 $409,532.60 

~ Non-ARP Sources in PM/O3 and PM Only States

a. Solid Fuel: SO2, 

NOx, and Flow

CEMS (units)

34 23 57 $4,170.62 $28,900 102 5,814 $3,373,203.24 

b. Gas-Oil: NOx CEMS 

and Appendix D fuel 

monitoring (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 $674,790.00 
27

D

RA

F

T

S

up

p

ortin

g

State

m

e

nt IC

R

Ju

n

e

3

0, 2

0

0

8

P

a

g

e

2

7

(cont.)

Table 6-2 

Annual Industry Respondent Burden and Cost by Activity, 2009 and subsequent years (cont.)

Information 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

Number of 

Respondents

2009

Total 

Hours/

Year

2009

Total 

Cost/Year

2009

~ Non-ARP Sources in O3 Only States

a. Solid Fuel: NOx, and 

Flow CEMS (units)

24 3 27 $2,176.32 $22,500.00 4 108 $98,705.28 

b. Gas-Oil: NOx CEMS 

and Appendix D fuel 

monitoring (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 Requirements

~ ARP PM and O3

Sources (facilities)

1 1 2 $141.43 908 1,816 $128,418.44 

~ Non-ARP NBP 

Sources in PM/O3 and 

PM Only States 

(facilities)

1 1 2 $141.43 138 276 $19,517.34 
28

D

RA

F

T

S

up

p

ortin

g

State

m

e

nt IC

R

Ju

n

e

3

0, 2

0

0

8

P

a

g

e

2

8

~ Non-ARP non-NBP 

Sources in PM/O3 and 

PM Only States 

(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.)

Information 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

Number of 

Respondents

2009

Total 

Hours/

Year

2009

Total 

Cost/Year

2009

Review Instructions and Requirements (cont.)

~ Non-ARP NBP 

Sources in O3 Only 

States (facilities)

1 1 2 $141.43 10 20 $1,414.30 

~ Non-ARP non-NBP 

Sources in O3 Only 

States (facilities)

24 24 48 $3,394.32 1 48 $3,394.32 

Respond to EPA Generated Error Messages

~ Non-ARP Sources in 

PM/O3 and PM Only 

States (facilities)

4 8 12 $797.72 242 2,904 $193,048.24 

~ Non-ARP Sources in 

O3 Only States 

(facilities)

4 8 12 $797.72 11 132 $8,774.92 
29

D

RA

F

T

S

up

p

ortin

g

State

m

e

nt IC

R

Ju

n

e

3

0, 2

0

0

8

P

a

g

e

2

9

Debug Computer Software

~ Non-ARP non-NBP 

Sources in PM/O3 and 

PM Only States 

(facilities)

16 88 104 $6,438.88 104 10,816 $669,643.52 

~ Non-ARP non-NBP 

Sources in O3 Only 

States (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 and subsequent years (cont.)

Information 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

Number of 

Respondents

2009

Total 

Hours/

Year

2009

Total 

Cost/Year

2009

Debug Computer Software (cont.)

~ Non-ARP NBP 

Sources in PM/O3 and 

PM Only States 

(facilities)

1 4 5 $315.43 138 690 $43,529.34 

~ Non-ARP NBP 

Sources in O3 Only 

States (facilities)

1 4 5 $315.43 10 50 $3,154.30 

Certify Monitors

~ Non-ARP Sources in PM/O3 and PM Only States
30

D

RA

F

T

S

up

p

ortin

g

State

m

e

nt IC

R

Ju

n

e

3

0, 2

0

0

8

P

a

g

e

3

0

a. Solid Fuel: SO2, 

NOx, and Flow

CEMS (units)

15 48 63 $4,035.45 $2,800 10 630 $68,354.50 

b. Gas-Oil: NOx CEMS 

and Appendix D fuel 

monitoring (units)

10 32 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.)

Information 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

Number of 

Respondents

2009

Total 

Hours/

Year

2009

Total 

Cost/Year

2009

Certify Monitors (cont.)

~ Non-ARP Sources in O3 Only States

a. Solid Fuel: NOx, and 

Flow CEMS (units)

10 32 42 $2,690.30 $2,800 1 42 $5,490.30 

b. Gas-Oil: NOx CEMS 

and Appendix D fuel 

monitoring (units)

10 32 42 $2,690.30 10 3 126 $8,100.90 
31

D

RA

F

T

S

up

p

ortin

g

State

m

e

nt IC

R

Ju

n

e

3

0, 2

0

0

8

P

a

g

e

31

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/O3 and PM Only States

a. Solid Fuel: SO2, 

NOx, and Flow

CEMS (units)

50 600 650 $38,971.50 31,200 102 66,300 $7,157,493.00 

b. Gas-Oil: NOx CEMS 

and Appendix D fuel 

monitoring (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.)

Information 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

Number of 

Respondents

2009

Total 

Hours/

Year

2009

Total 

Cost/Year

2009

Perform QA Testing and Maintenance (cont.)

c. Gas-Oil Peaking 

Units: Appendix D 

fuel sampling, 

Appendix E, or LME 

methods (units)

5 30 35 $2,157.15 $1,800 150 5,250 $593,572.50 
32

D

RA

F

T

S

up

p

ortin

g

State

m

e

nt IC

R

Ju

n

e

3

0, 2

0

0

8

P

a

g

e

3

2

~ Non-ARP Sources in O3 Only States

a. Solid Fuel: NOx, and 

Flow CEMS (units)

40 400 440 $26,537.20 $20,800 4 1,760 $189,348.80 

b. Gas-Oil: NOx CEMS 

and Appendix D fuel 

monitoring (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, Submit Reports

~ Non-ARP Sources in 

PM/O3 and PM Only 

States (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 subsequent years (cont.)

Information 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

Number of 

Respondents

2009

Total 

Hours/

Year

2009

Total 

Cost/Year

2009

Assure Data Quality, Prepare Reports, Submit Reports (cont.)

~ Non-ARP Sources in 

O3 Only States 

(facilities)

16 42 58 $3,770.88 11 638 $41,479.68
33

DRAFT Supporting Statement ICRJune 30, 2008Page 33

~ Year end compliance 

activities (facilities)

202 $166.86 1,161 2,322 $193,724.46

~ Allowance Transfers112 $141.43 7,500 15,000 $1,060,725.00

TOTAL 388,465 $50,845,155