From: Shine, Brenda <Shine.Brenda@epa.gov> Sent: Monday, May 12, 2014 2:54 PM
To: Cortney Higgins Cc: Lassiter, Penny Subject: Recordkeeping and reporting burden for Fenceline Monitoring

Hi Cortney,

Penny asked me to send you the reporting burden for fenceline monitoring. The information you need is on Table 2 of the supporting statement for MACT CC, which I have attached. See page 18. The recordkeeping burden is on Table 1, page 16.

Let me know if you need anything else.

<< Supporting-Statement_CC_May_2014.docx >>SUPPORTING STATEMENT ENVIRONMENTAL PRO TECTION AGENCY NESHAP FOR HAZARDOUS AIR POLLUTANTS FROM PETROLEUM REFINERIES 40 CFR PART 63, SUBPART CC MAY 2014

1. Identification of th e Information Collection

1(a) Title of the Information collection

“National Emission Standards for Petroleum Refineries” (40 CFR Part 63, Subpart CC). This is a revision of an existing information collection request (ICR); the OMB Control Number is 2060-0340 and the EPA tracking number is 1692.08.

1(b) Short Charact erization/Abstract

The EPA is proposing to revise 40 CFR part 63, subpart CC as it applies to existing and new petroleum refining process units and emission points located at refine ries that are major sources of hazardous air pollutants (HAP) emissi ons. Emission points aff ected by the revisions are miscellaneous process vents, storage vessels, and equipment leaks. There are new provisions for delayed coking unit vents and for fencelin e monitoring, which include new recordkeeping and reporting requirements. There are also additiona l requirements and clarifications for storage vessels, which include revisions to the inspectio n, recordkeeping, and reporting requirements. In addition, electronic reporting is now required for fenceline mon itoring and performance testing. An overarching change to all NESHAP regulations is a change in EPA policy with regards to emission requirements and associated monitorin g, recordkeeping and reporting during startup, shutdown, and malfunctions.

This information is being co llected to assure compliance with 40 CFR part 63, subpart CC. The previous approved ICR for this subpa rt (1692.06) included estimat es of the monitoring, recordkeeping, and reporting burd en for 134 refineries, including process vents, storage vessels, and process units subject to leak detection and re pair (LDAR). This ICR estimates burden due to proposed rule changes for 142 major source refine ries for process vents, storage vessels, and process units subject to LDAR. This ICR also estim ates the additional burden associated with the new fenceline monitoring requirements for th e 142 major source refineries. The burden associated with startups, shut downs and malfunctions did not ch ange. The original ICR did not include burden estimates for wastewater ope rations or transfer operations because the recordkeeping and reporting requirements for th ese emission points are covered under other rules. This ICR also does not contain burden estim ates for wastewater op erations or transfer operations because there were no changes in the provisions for these emission points.

2. Need for and Use of the Collection

2(a) Need/Authority for the Collection

The EPA is charged under section 112 of th e Clean Air Act, as amended, to establish standards of performance for each category or su bcategory of major sources and area sources of hazardous air pollutants. These stan dards are applicable to new or existing sources of hazardous2

air pollutants and shall require the maximum de gree of emission reduction. Section 112 also requires that the Administrator review and, if appr opriate, revise such sta ndards every 8 years. In addition, section 114(a) states th at the Administrator may require any owner or operator subject to any requirement of this Act to:

(A) Establish and maintain such re cords; (B) make such reports; (C) install, use, and maintain such monitoring equipment, and use such audit procedures, or methods; (D) sample such emissions (in accordance with such procedures or methods, at such locations, at such intervals, during such period s, and in such manner as the Administrator shall prescribe); (E) keep records on control equipment parameters, production variables or ot her indirect data when direct monitoring of emissions is impractical; (F) submit compliance certifications in accordance with Section 114(a)(3); and (G) provide such other information as the Ad ministrator may reasonably require.

Certain records and reports are necessary for the Administrator to confirm the compliance status of sources subject to NE SHAP, identify any new or recons tructed sources subject to the standards, and confirm that the standards are being achieved on a continuous basis. These recordkeeping and reporting requirements are speci fically authorized by s ection 114 of the Clean Air Act (42 U.S.C. 7414) and set out in the part 63 NESHAP General Provisions. The recordkeeping and reporting requirements for title V permits are contained in 40 CFR 70.6 and 40 CFR 71.6. Under parts 63 and 70 or 71, the owne r or operator must keep each record for 5 years following the date of each occurrence, measurement, maintenance, corrective action, report, or record.

2(b) Practical Utilit y/Users of the Data

The control of emissions of HAP from pe troleum refineries requires not only the installation of properly designed equipment, but also the operation and maintenance of that equipment. Emissions of HAP from petroleum refi neries are the result of the operation of the affected facilities. The subject standards are achieved by the capture of HAP emissions using control devices and the reduction of emissions through leak dete ction and repair procedures. Depending on the emission point being controlle d, affected sources may use flares, carbon adsorbers, combustion devices (i ncluding incinerators, boilers a nd process heaters), or other control devices that meet minimum control re quirements. The notifications required in the applicable regulations are used to inform th e Agency or delegated authority when a source becomes subject to the requirement s of the regulations. The review ing authority may then inspect the source to check if the pollution control device s are properly installed and operated, leaks are being detected and repaired, a nd the regulations are being met. Performance test reports are needed as these are the Agency's record of a source's initial capability to comply with the emission standards, and serve as a record of the operating co nditions under which compliance was achieved.

Reports are used for problem identifi cation, as a check on source operation and maintenance, and for compliance determinations . The reporting frequency is semiannual except3

for fenceline monitoring results, which woul d be reported quarterly. The EPA is proposing electronic reporting for fenceline mo nitoring and performance testing.

The information generated by the monitori ng, recordkeeping and reporting requirements described in this ICR is used by the Agency to ensure that sources affected by the NESHAP continue to operate the control equipment in compliance with th e regulation. Adequate monitoring, recordkeeping, and repo rting are necessary to ensure compliance with the applicable regulations, as required by the Cl ean Air Act. The information collected from recordkeeping and reporting requirements is also used for targeting inspections and is of sufficient quality to be used as evidence in court.

3. Non-duplication, Consultations, and Other Collection Criteria

The requested recordkeeping and repor ting are required under 40 CFR part 63, subpart CC.

3(a) Non-duplication

For notifications and reporting not required to be submitted electronically, if the subject standards have not been delega ted, the information is sent directly to the appropriate EPA regional office. Otherwise, the information is sent directly to the delegate d state or local agency. If a state or local agency has adopted its ow n similar standards to implement the Federal standards, a copy of the report submitted to the state or local agency can be sent to the Administrator in lieu of the re port required by the Fe deral standards. Ther efore, no duplication exists.

Some of the petroleum refinery facilities s ubject to subpart CC will also be subject to requirements under the following regulations: New Source Performance Standards (NSPS) subparts J, Ja, K, Ka, Kb, VV, and QQQ, NESHAP (part 61) subpa rt FF, and NESHAP (part 63) subparts G, H, J, R, Y, and UUU. The burden re quested in this NESHAP does not duplicate any of the industry burden accounted for under those re gulations. The applicabili ty section of this NESHAP delineates requirements wh ere there are overlapping rules.

As stated in Section 1(b) of this ICR, th e changes to this NESHAP do not affect the recordkeeping or reporting for marine vessel tank loading an d unloading operations, bulk gasoline loading racks, and wastewater sources. Reporting and recordkeep ing requirements for these sources are covered under other rule s and are not duplicated in subpart CC.

3(b) Public Notice Required Pr ior to ICR Submission to OMB

This section is not applicable because this is a rule-related ICR.

3(c) Consultations

The proposed amendments are based upon the data provided by each individual refinery in response to an EPA survey of the petroleum refinery industry in 2011 (d ata from calendar year 2010); these responses were compiled into a Petroleum Refinery Database. The proposed amendments were also developed in consultation with trade associations , including Matt Todd of4

the American Petroleum Institute (API) and David Freidman of the American Fuel and Petrochemical Manufacturers (AFPM). The assumpti ons made in the development of this ICR, including the estimate of the number of petrol eum refineries subject to the standard, were updated by reviewing the EPA’s Petroleum Refinery Database, as well as the Agency’s internal data sources, such as our own i ndustry experts and the Air Facility System (AFS), which is the EPA database for the collection, maintenance, and retrieval of a ll compliance data. The information in AFS is reported by industry as required in the recordkeeping and reporting provisions of the standard. AFS is operated a nd maintained by the EPA Office of Compliance. We have estimated that there are approximately 142 existing respondents s ubject to the standard, and no new sources will become subject to the st andard over the 3-year period covered by this ICR. The Petroleum Refinery Database also provided information on process unit counts and equipment counts ( e.g. , the number of delayed cokers a nd number of relief valves).

The EPA will provide a 60-day public comment period after proposal of the amendments to subpart CC. All affected parties will be gi ven the opportunity to comment on the proposed amendments during this period. The EPA will cons ider all of the commen ts received and may incorporate them in developing the final amendments.

3(d) Effects of Less Frequent Collection

Less frequent information collection would decrease the margin of assurance that facilities are continuing to meet the standard s. Requirements for information gathering and recordkeeping are useful techniques to ensure that good operation and maintenance practices are applied and emission limitations are met. If the information required by these standards was collected less frequently, the likelihood of de tecting poor operation and maintenance of control equipment and noncompliance would decrease.

3(e) General Guidelines

None of these reporting or recordkeeping re quirements violate a ny of the regulations established by OMB at 5 CFR 1320.5.

These standards require respondents to main tain all records, including reports and notifications, for at least 5 years. This is consistent with the Ge neral Provisions in 40 CFR part 63 subpart A as applied to the standards. The EPA believes that the 5- year records retention requirement is consistent with the Part 70 perm it program and the 5-year statute of limitations on which the permit program is based. Also, the rete ntion of records for 5 years would allow the EPA to establish the compliance history of a source and any pattern of compliance for purposes of determining the appropriate level of enforc ement action. Historically, the EPA has found that the most flagrant violators fr equently have violations exte nding beyond the 5 years. The EPA would be prevented from pursuing the worst violat ors due to the destruction or nonexistence of records if records were reta ined for less than 5 years.

3(f) Confidentiality

All information submitted to the Agency for wh ich a claim of confidentiality is made will be safeguarded according to the Agency policies se t forth in title 40, chap ter 1, part 2, subpart B - Confidentiality of Business Information (CBI) (see 40 CFR 2; 41 FR 36902, September 1,5

1976; amended by 43 FR 39999, September 8, 1978; 43 FR 42251, September 28, 1978; 44 FR 17674, March 23, 1979).

3(g) Sensitive Questions

This section is not applicable because this ICR does not involve matters of a sensitive
nature.
4. The Respondents and the Information Requested

4(a) Respondents/NAICS Codes

The potential respondents to the recordkeep ing and reporting requirements under subpart CC are owners or operators of existing or new ma jor source petroleum refineries that are major sources of HAP emissions. The North American I ndustry Classification System (NAICS) code is 324110 for petroleum refineries.

4(b) Information Requested

(i) Data Items

All data in this ICR that are recorded a nd/or reported are required by the proposed amendments to 40 CFR part 63, subpart CC - National Emission Standards for Hazardous Air Pollutants for Petroleum Refineries.

A source must make the following reports:

N otification Reports

Notification of compliance status fo r storage vessels, control device bypass valves, delayed coke rs, and relief valves 63.655(f), 63.655(f)(1)(i), 63.655(f)(1)(vii), 63.655(f)(4) Notifications of inspections of storage vessels 63.655(h)(2)

Reports Malfunction reports 63.655(g)(11)

Semiannual reports for storage vess els, control device bypass valves, delayed cokers, relief valves, and flares 63.655(g)(1) to (g)(5), 63.655(g)(6)(iii), 63.655(g)(10), 63.655(g)(11) Quarterly reports for fenceline monitoring - electronic 63.655(h)(7)6

A source must keep the following records:

Recordkeeping Records of information in semiannual reports. 63.655(i)

Records for storage vessels, co ntrol device bypass valves, delayed cokers, and flares. 63.655(i)(1), 63.655(i)(4), 63.655(i)(7), 63.655(i)(9)
Records of occurrence of malfunction for process equipment, control equipment or monitoring equipmen t. Records of corrective actions taken during malfunction. 63.655(i)(11)

Fenceline monitoring records. 63.655(i)(8)

Electronic Reporting. As part of the proposed ch anges to this rule, all performance test reports are required to be submitted electronica lly. The EPA believes that the standardization achieved through electronic report ing will reduce the burden both to industry and the Agency. In addition, fenceline monitoring reports will be su bmitted to the EPA’s Compliance and Emissions Data Reporting Interface (CEDRI) that is acces sed through the EPA’s Central Data Exchange (CDX). All other reports will continue to be submitted as required currently.

(ii) Respondent Activities

The respondent activities that will be requi red by the proposed amendments to subpart CC include the following activities:

Respondent Activities

Read instructions. Install, calibrate, maintain, a nd operate continuous temperature monitors or other monitoring devices for HAP control devices. Write the notifications and reports listed above. Enter information required to be recorded above. Submit the required reports developing, acquirin g, installing, and uti lizing technology and systems for the purpose of collecting, validating, and verifying information. Develop, acquire, install, and ut ilize technology and systems for the purpose of processing and maintaining information. Develop, acquire, install, and ut ilize technology and systems for the purpose of disclosing and providing information. Train personnel to be able to res pond to a collection of information. Transmit, or otherwise disclose the information.7

5. The Information Collected: Agency Activi ties, Collection Methodology, and Information Management

5(a) Agency Activities

The EPA conducts the following activities in connection with the acquisition, analysis, storage, and distribution of the required information.

Agency Activities Review notifications and reports , periodic reports, and quarterly fenceline monitoring reports, required to be submitted by industry. Audit facility records. Input, analyze, and maintain data in the Air Facility System (AFS). Input, analyze, and maintain data in the Co mpliance and Emissions Data Reporting Interface (CEDRI).

5(b) Collection Methodology and Management

Performance test reports are used by the Agency to discern a source’s capability to comply with the emission standard. Data obtai ned during periodic visits by Agency personnel from records maintained by the respondents are tabulated and published for internal Agency use in compliance and enforcement programs. The semiannual and annual reports are used for problem identification, as a check on source operation and maintenance, and for compliance determinations.

Some of the information contained in the repo rts is entered into AFS, which is operated and maintained by the EPA’s Office of Compliance and Enforcement. AFS is the EPA’s database for the collection, maintenance, a nd retrieval of complia nce and annual emission inventory data for over 100,000 industrial and gove rnment-owned facilities. The data entered into AFS is focused on compliance inspections, enforcement actions, and issuance of permits. The EPA uses AFS for tracking air pollution co mpliance and enforcement by state and local regulatory agencies, EPA Regiona l Offices and EPA Headquarters . The EPA and its delegated authorities can edit, store, re trieve and analyze the data.

As part of the proposed revisions to this ru le, all data that are required to be reported electronically will be collected through the EPA’s Compliance and Emissions Data Reporting Interface (CEDRI), which is part of the EPA’s Central Data Exchange. The data collected via CEDRI will be more extensive than the data co llected through AFS and will be visible to the public through WebFIRE.

The records required by this regulation must be retained by the owner or operator for 5 years.8

5(c) Small Entity Flexibility

A majority of the respondents are large entities ( i.e. , large businesses). However, the impact on small entities ( i.e. , small businesses) was taken into consideration during the development of the regulation. A sm all entity for petroleum refineries is defined as a firm having no more than 1,500 employees. Due to technical c onsiderations involving the process operations and the types of control equipment employed, th e recordkeeping and reporting requirements are the same for both small and large entities. Th e EPA considers these requirements the minimum needed to ensure compliance and, therefore, cannot reduc e them further for small entities. To the extent that larger businesses can use economies of scale to re duce their burden, the overall burden will be reduced.

5(d) Collection Schedule

The specific frequency for each information co llection activity within this request is shown below in Table 1: Annual Respondent Burden and Cost: Proposed Amendments to NESHAP for Petroleum Refineries (40 CFR Part 63, Subpart CC).

6. Estimating the Burden and Cost of the Collection

Table 1 documents the computation of indi vidual burdens for the recordkeeping and reporting requirements applicable to the industry fo r each year for the subpart included in this ICR. The individual burdens are ex pressed under standardized headi ngs believed to be consistent with the concept of burden under the Paperwor k Reduction Act. Where appropriate, specific tasks and major assumptions have been identified . Responses to this information collection are mandatory.

The Agency may not conduct or sponsor, a nd a person is not required to respond to, a collection of information unless it displa ys a currently valid OMB Control Number.

6(a) Estimating Respondent Burden

The average annual burden to industry over th e next 3 years from these recordkeeping and reporting requirements is estimated to be 53,619 (Total Labor Hours from Table 1). The recordkeeping hours shown below in Table 1 are 51,627. The reporting requirement hours shown below in Table 1 are 1,992. These hours are base d on Agency studies and background documents from the development of the regulation a nd Agency knowledge and experience with the NESHAP program, the previously approved ICR fo r this subpart, and any comments received on previous ICRs and regulations. The average annual burden over the next 3 years was estimated using the number of facilities that would be in compliance in year two (94.7), assuming one-third of all facilities would become co mpliant each year for 3 years.9

6(b) Estimating Respondent Costs

(i) Estimating Labor Costs

This ICR uses the following labor rates:
Managerial $130.26 ($62.03 + 110%) Technical $84.95 ($40.45 + 110%) Clerical $41.18 ($19.61 + 110%)

Labor rates and associated costs are based on the Bureau of Labor Statistics (BLS) data. Technical, management, and clerical average ho urly rates for private industry workers were taken from the Occupational Employment Statis tics: NAICS 324 (Petroleum and Coal Products Manufacturing), May 2009 Employment and Wage Es timates. These BLS rates represent salaries plus fringe benefits and do not include the co st of overhead. The rates have been increased by 110 percent to account for the benefit packages av ailable to those employed by private industry.

(ii) Estimating Capital and Op eration and Maintenance Costs

The capital/startup costs are one-time costs when a facility becomes subject to the revised portion of the standards or when a facility becomes subject to the standard as a result of reconstruction. (Capital costs due to reconstruction are not addre ssed in this ICR; only capital costs that are the result of rule changes are a ddressed here.) The capital costs include the costs for fenceline monitoring equipment, costs for flar e monitoring equipment, and the cost for relief valve and bypass line monitoring equipment. The cost for delayed coker monitoring equipment ( i.e. , temperature and pressure monito rs) are not included, as it is assumed that each coke drum already has at least one of those mo nitors as part of normal operation.

The annual operation and mainte nance costs are the ongoing cost s to maintain monitors and other costs such as performance testing. Fo r fenceline monitoring, costs will vary depending on the physical size (not capacity) of the refinery where a small refi nery is less than 750 acres, a medium refinery is between 750 acres and 1,500 acr es, and a large refinery is greater than 1,500 acres. It was assumed that all refineries w ould use in-house labor to collect samples and would conduct sample analysis in-house. The ope ration and maintenance costs for this ICR are assumed to be 10 percent of the capital co st for fenceline monitoring equipment.

There are 84 small refineries, 27 medium refine ries and 31 large refine ries, for a total of 142 refineries. The total capital and annual ope ration and maintenance costs for fenceline monitoring for the 3-year initial compliance peri od are shown in the table below. The costs shown in the table are the totals for the 3-ye ar period for all 142 ma jor source refineries.10

Capital vs. Operation and Maintenance (O&M) Costs for Fenceline Monitoring (A) Capital Cost for One Affected Facility (B) Number of

Affected Facilities (C) Total Capital Cost (A × B) (D) Annual O&M Costs for One Affected Facility a (E) Total Annual

O&M Cost

(D × B)

Small $85,440 84 $7,177,000 $8,544 $717,700 Medium $86,650 27 $2,340,000 $8,665 $234,000 Large $88,270 31 $2,736,000 $8,827 $273,600 TOTAL 142 $12,253,000 $1,225,600 b

a Assumed to be 10 percent of capital cost.

b Note: This cost does not match the O&M cost in Table 1 b ecause this value represents the cost to all refineries, and

the value in Table 1 represents the annual cost for the av erage number of refineries subject to subpart CC in the second year (94.7).

There are 510 flares that would be subject to the flare monitoring requirements at the 142 major source refineries. The total capital and annual operati on and maintenance costs for flare monitoring for the 3-year initial compliance period are shown in the table below. The costs shown in the table are the totals for the 3-ye ar period for all 142 ma jor source refineries.

Capital vs. Operation and Maintenan ce (O&M) Costs for Flare Monitoring

Monitoring Equipment or Material (A) Capital Cost for

One Affected

Flare (B) Number of Affected

Flares (C) Total Capital Cost (A × B) (D) Annual O&M Costs for One Affected

Flare (E) Total Annual

O&M Cost

(D × B) Calorimeter $105,000 85 $8,925,000 $20,100 $1,708,500
Steam Controls/Flow Monitor $684,000 190 $129,960,000 $59,730 $11,348,700
Air Controls/ Flow Monitor $164,000 37 $6,068,000 $36,520 $1,351,240 Average Natural Gas (NG) Costs per Flare to Meet NHV cz Targets $0 190 $0 $98,660 $18,745,400

Steam Costs (Savings) per Flare for Steam Controls to Meet NHV cz Targets $0 190 $0 ($73,770) $(14,016,300)

Engineering Calculation Costs $7,000 267 $1,869,000 $12,500 $3,337,500

TOTAL 510 $146,822,000 $22,475,040

For relief valves, it was estimated that the total capital cost to install a monitor on each relief valve is $9,540,000 for an estimated 10,700 relief valves over the next 3 years. It was also11

assumed that there is one bypass line per refinery that would need a continuous flow monitor, and the cost of one flow monitor is estimat ed at $9,100, for a total capital cost of $1,292,200.

(iii) Annualizing Capital Costs

The annualized capital costs associated with the information collection requirements of the proposed amendments is $17,100,000 per year. Ca pital costs were annualized using a capital recovery factor (CRF) of 0.1424, representing an in terest rate of 7 per cent over a 10-year period, except that flare monitoring costs were annualized using a CRF of 0.094 repr esenting an interest rate of 7 percen t over 20 years.

6(c) Estimating Agency Burden and Cost

The only costs to the Agency are those costs associated with anal ysis of the reported information. The EPA compliance and enforcemen t program includes activities such as: the examination of records maintained by the resp ondents; periodic insp ection of sources of emissions; and the publication and dist ribution of collected information.

The average annual Agency cost during the 3 years of the ICR is estimated to be $65,244 (see Table 2 below.)

This cost is based on the averag e hourly labor rate as follows:
Managerial $61.36 (GS-13, Step 5, $38.35 + 60%) Technical $45.52 (GS-12, Step 1, $28.45 + 60%) Clerical $24.64 (GS-6, Step 3, $15.40 + 60%)

These rates are from the Office of Personnel Management (OPM) 2009 General Schedule, which excludes locality rates of pay. The rates have b een increased by 60 percent to account for the benefit packages available to government employees. Details upon which the Agency cost is based appear below in Table 2: Annual Burden and Cost to the Fede ral/State Government: Proposed Amendments to NESHAP for Petroleu m Refineries (40 CFR Part 63, Subpart CC).

6(d) Estimating the Respondent Un iverse and Total Burden and Costs

There are currently 142 major source refineries in the United States a nd no new refineries are expected to be built during th e next 3-year period. For the fenceline monitoring requirements, and the new monitoring requirements for relief va lves, it was assumed that one-third of all refineries would come into compliance with requir ements each year over the next 3 years. This means that by the end of year one, 47.3 refineries would be in compliance; by the end of year two, 94.7 refineries would be in compliance; and by the end of year three, all 142 refineries would be in compliance with the updated rule. Over the 3- year period, an average of 94.7 refineries will be reporting under th e new requirements ((47.3+94.7+142)/3).12

Number of Respondents
Respondents That Submit Reports Respondents That Do Not Submit Any Reports Year (A) Number of New

Respondents a (B) Number of

Existing Respondents (C) Number of Existing Respondents that keep

records but do not

submit reports (D) Number of Existing Respondents That

Are Also New Respondents (E) Number of Respondents (E=A+B+C-D)

1 0 47.3 0 0 47.3
2 0 94.7 0 0 94.7
3 0 142 0 0 142 Average 0 94.7 0 0 94.7

a New respondents include sources with constructed, reconstructed, and modi fied affected facilities.

Column D is subtracted to avoid double-counting respondents. As shown above, the average Number of Respondents over th e 3-year period of this ICR is 94.7.

The total number of annual re sponses per year is calculate d using the following table:

Total Annual Responses
(A) Information Collection Activity (B) Number of Respondents a (C) Number of Responses (D) Number of Existing Respondents That Keep

Records But Do Not Submit Reports (E) Total Annual

Responses E=(B×C)+D

Notification of storage vessel inspections b 94.7 1 0 94.7
Fenceline monitoring data transmission c 94.7 2 0 189.3
Notification of compliance status d 47.3 2.7 0 126.3 Notification of compliance status e 94.7 3 0 284 Semiannual reports f 94.7 8.2 0 773.1 Total 1,467

a There are 142 major source petroleum refineries that have one or more affected sources subject to the standard. No

new or reconstructed facilities are expected over the next 3 years. We assumed that approximately one-third of facilities would comply with the amended rule in each of the 3 years following promulgation, so that 47.3 facilities would comply and be subject the first year, 94 .7 facilities would be subject the second year, and 142 facilities would be subject the third year. We assumed costs based on the second year, with 94.7 facilities subject to the rule.

b 113 new tanks will be subject to tank inspection requirements under subpart CC.

c Semiannual reports required.

d Notification of compliance status is a one-time response, so used number of facilities subject per year for storage

vessels and delayed coking units.

e Assumed that there are so many relief valves, bypass line s, and flares, that facilities will not bring all units into

compliance in the same year. Instead, used number of facilities in the second year.

f Semiannual reports are already required under subpart CC but additional information will be reported due to newly

added requirements.13

The number of Total Annual Responses is approximately 1,470. The total annual labor costs are approximately $4,460,000. Details regardi ng these estimates may be found below in Table 1: Annual Respondent Burden and Co st: Proposed Amendments to NESHAP for Petroleum Refineries (40 CFR Part 63, Subpart CC).

6(e) Bottom Line Burden Hours Burden Hours and Cost Tables

The detailed bottom line burden hours and cost cal culations for the respon dents and the Agency are shown in Tables 1 and 2, resp ectively, and summarized below.

(i) Respondent Tally

The bottom line respondent burden hours and cost s, presented in Table 1, are calculated by adding person-hours per year down each column for technical, managerial, and clerical staff, and by adding down the cost column. The averag e annual burden in th e second year for the recordkeeping and reporting requirements in th e proposed amendments to subpart CC for the 142 facilities that are subject is 53,619 person-hours, with an annual average cost of approximately $4,460,000. Details regarding these es timates may be found below in Table 1: Annual Respondent Burden and Cost: Proposed Amendments to NESHAP for Petroleum Refineries (40 CFR Part 63, Subpart CC).

The annualized capital costs associated with the proposed amendments are approximately $17,100,000. The operation and maintenance costs associ ated with the proposed amendments are approximately $23,700,000 for all facilities ( $15,800,000 in the second year). The cost calculations are detailed in Sect ion 6(b)(ii), Capital vs. Operat ion and Maintenance (O&M) Costs and 6(b)(iii), Annualizing Capital Cost.

(ii) The Agency Tally

The average annual Agency burden and cost over next 3 years is estimated to be 1,470 labor hours at a cost of approximately $65,200. See below Table 2: Annual Burden and Cost to the Federal/State Government: Propos ed Amendments to NESHAP for Petroleum Refineries (40 CFR Part 63, Subpart CC).

6(f) Reasons for Change in Burden

The change in burden estimate reflects th e additional requirements of the proposed amendments to 40 CFR part 63, subpart CC.

6(g) Burden Statement

The average annual respondent burden for the proposed amendments for subpart CC is estimated at 53,619 hours. Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclo se or provide information to or for a Federal agency. This includes the time needed to review in structions; develop, acquire , install, and utilize technology and systems for the purposes of colle cting, validating, and verifying information, processing and maintaining information, and disc losing and providing information; adjust the existing ways to comply with any previously ap plicable instructions and requirements; train14

personnel to be able to respond to a collection of information; s earch data sources; complete and review the collection of information; and tran smit or otherwise disc lose the information.

An agency may not conduct or sponsor, a nd a person is not required to respond to, a collection of information unless it displays a valid OMB Control Number. The OMB Control Numbers for EPA regulations are listed at 40 CFR part 9 and 48 CFR chapter 15.

To comment on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including the use of automated collection techniques, the EP A has established a public docket for this ICR under Docket ID Number EPA-HQ-OAR-2010-0682, wh ich is available for on-line viewing at www.regulations.gov, or in person viewing at the Air and Radiation Docket and Information Center in the EPA Docket Center (EPA/DC), EPA West, Room B102, 1301 Constitution Avenue, NW, Washington, D.C. The EPA Docket Center Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, ex cluding legal holidays. The telephone number for the Reading Room is (202) 566-1744, and th e telephone number for the Air and Radiation Docket and Information Center is (202) 566-1742. An electronic version of the public docket is available at www.regulati ons.gov. This site can be used to submit or view public comments, access the index listing of the contents of the publ ic docket, and to access those documents in the public docket that are available electronically. When in the system, select “search,” then key in the Docket ID Number identified above. Al so, you can send comments to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, D.C. 20503, Attention: Desk Officer for EPA. Pleas e include the EPA Docket ID Number EPA-HQ-OAR-2010-0682 in any correspondence.

Part B of the Supporting Statement

This part is not applicable because no stat istical methods were used in collecting this information.15Table 1. Annual Respondent Burden and Cost: Proposed Amendments to NESHAP for Petroleum Refineries (40 CFR Part 63,Subpart CC).Burden item(A) (B) (C) (D) (E) (F) (G) (H)Personhours peroccurrenceNo. ofoccurrencesper respondentper yearPersonhours perrespondentper yearRespondentsper yearaTechnicalpersonhours peryearManagementperson-hoursper yearClericalpersonhoursper year Cost,$b(C=A×B) (E=C×D) (E×0.05) (E×0.1)1. Applications N/A2. Survey and Studies N/A3. Acquisition, Installation, andUtilization of Technology and SystemsN/A4. Reporting RequirementsA. Read Instructions 100 1 100 94.7 9,467 473 947 $904,866B. Required ActivitiesFenceline monitoring samplecollection and analysis small facilityc5.6 26 146 56.0 8,154 408 815 $779,329Fenceline monitoring samplecollection and analysis mediumfacilityc7.4 26 192 18.0 3,463 173 346 $331,016Fenceline monitoring samplecollection and analysis large facilityc9.2 26 239 20.7 4,943 247 494 $472,501Storage vessel inspections variable variable 2.66 94.7 251 12.6 25.1 $24,028Flares 0.4 365 146 94.7 13,821 961 1,382 $1,321,057C. Create information See 4BD. Gather existing information See 4BE. Write reportFenceline monitoring datatransmission2 2 4 94.7 379 18.9 37.9 $36,193Notification of compliance statusdStorage vessels, delayed cokers 1 2.67 2.67 47.3 126 6.32 12.6 $12,075Relief valves, bypass lines, flares 1 3 3 94.7 284 14.2 28.4 $27,14516Burden item(A) (B) (C) (D) (E) (F) (G) (H)Personhours peroccurrenceNo. ofoccurrencesper respondentper yearPersonhours perrespondentper yearRespondentsper yearaTechnicalpersonhours peryearManagementperson-hoursper yearClericalpersonhoursper year Cost,$b(C=A×B) (E=C×D) (E×0.05) (E×0.1)Notification of storage vesselinspection0.5 1 0.5 94.7 47.3 2.37 4.73 $4,524Compliance reportse3 2 6.1 98.6 600 30 60 $57,306Storage vessels 0.00511 2 0.0102 94.7 0.967 0.0483 0.0967 $92Relief valves 3.13 2 6.26 94.7 593 29.6 59.3 $56,651Bypass lines 0.075 2 0.15 94.7 14.2 0.710 1.42 $1,357Delayed cokers 0.25 0.167 0.0417 94.7 3.95 0.198 0.395 $378Flares 1.5 2 3 94.7 284 14.2 28.4 $27,1455. Recordkeeping RequirementsA. Read instructions See 4AB. Plan activities See 4AC. Implement activities See 4BD. Develop record system N/AE. Time to enter informationStorage vessels variable variable 4.09 94.7 387 19.3 38.7 $36,967Relief valves 0.357 8.35 3.13 94.7 296 14.8 29.6 $28,325Bypass lines 0.355 0.211 0.075 94.7 7.10 0.355 0.710 $679Fenceline monitoring 0.5 26 13.0 94.7 1,231 61.5 123 $117,628Delayed cokers 0.0167 501 8.35 94.7 790 39.5 79.0 $75,509Flares 0.05 365 18.3 94.7 1,728 86.4 173 $165,132F. Training 7.5 1 7.5 47.3 355 17.8 35.5 $33,931Subtotal Labor Burden 46,625 2,331 4,663$4,456,49853,619Annualized Capital Cost $17,145,672Operation and Maintenance Costsf$15,800,219TOTAL LABOR BURDEN ANDCOSTg$37,402,38817aWe have determined that 142 major source petroleum refineriescurrently operate in the US. Nonew or reconstructed facilitiesare expected over the next 3years. We assumed that approximately one-third of facilities wouldcomply with the amended rule in each of the 3 years following promulgation, so that 47.3facilities would comply and be subject the first year, 94.7 facilities would be subject the second year, and 142 facilities would be subject the third year. Weassumed costs based on the second year, with 94.7 facilities subject to the rule.bThis ICR uses the following labor rates: $130.26 per hour for Executive, Administrative, and Managerial labor; $84.95 per hourfor Technical labor, and $41.18per hour for Clerical labor. These rates arefrom the United States Department of Labor, Bureau of Labor Statistics, May 2009.The rates are from column 1,”Total compensation.” The rates have been increased by 110 percent to account for the benefit packages available to those employed by private industry.cThese values are consistent with theFenceline Monitoring Technical Support Document, located in Docket ID No. EPA-HQ-OAR-2010-0682.dNotification of compliance status is a one-time response, so used number of facilities subject per year for storage vessels and delayed coking units. Assumed thatthere are so many relief valves, bypass lines, and flares, thatfacilities will not bring all units into compliance in the sameyear. Instead, used number of facilitiesin the second year.eThese costs represent the additional burden associated with theamendments to subpart CC. These costs are in addition to the current cost of semiannualcompliance reporting.fThe operating and maintenance cost of fenceline monitoring and flare monitoring in the second year.gThe total labor burden and cost is the sum of the total labor cost, the annualized capital cost, and the operation and maintenance cost.18Table 2. Annual Burden and Cost to the Federal/State Government: ProposedAmendments to NESHAP for PetroleumRefineries (40 CFR Part 63, Subpart CC).Activity(A) (B) (C) (D) (E) (F) (G)Hours peroccurrenceHours perplant peryearPlants peryearaTechnicalperson-hoursper yearManagementperson-hoursper yearClericalperson- hoursper yearCost, $b(E=B×C) (D×0.05) (D×0.1)Report ReviewNotification of compliance status – Storagevessels, delayed cokers1 2 47.3 94.7 4.73 9.47 $4,833Notification of compliance status – Reliefvalves, bypass lines, flares1 3 94.7 284 14.2 28.4 $14,499Semiannual reports – Storage 0.25 0.5 94.7 47.3 2.37 4.73 $2,416Semiannual reports – Relief valves1 2 94.7 189 9.47 18.9 $9,666Semiannual reports – Bypass lines 0.250.5 94.7 47.32.37 4.73 $2,416Semiannual reports – Delayed cokers 0.25 0.5 94.7 47.32.37 4.73 $2,416Semiannual reports – Flares 2 4 94.7 379 18.9 37.9 $19,332Semiannual report for fenceline monitoring 1 2 94.7 189 9.47 18.9 $9,666TOTAL LABOR BURDEN AND COST 1,470 $65,244Assumptions:aWe have determined that 142 major source petroleum refineriescurrently operate in the US. Nonew or reconstructed facilitiesare expected over the next 3years.bThis ICR uses the following labor rates: Managerial rate of $61.36 per hour (GS-13, Step 5, $38.35 + 60%), Technical rate of $45.52 per hour (GS-12, Step 1,$28.45 + 60%), and Clerical rate of $24.64 per hour (GS-6, Step 3, $15.40 + 60%). These rates are from the Office of PersonnelManagement (OPM) 2009General Schedule, which excludes locality rates of pay.