October 20, 2009 Page 1 of 38 

### Supporting Statement for a Request for OMB Review Under the Paperwork Reduction Act

1. Identification of the Information Collection

1(a) Title of the Information Collection

TITLE: 

### ICR Amendment for Rulemaking entitled “Lead; Elimination of the Opt-out Provision and Other Amendments to the Renovation, Repair, and Painting Program; Final Rule”

ICR No. EPA ICR No. 1715.13; OMB 2070-0155

1(b) Short Characterization/Abstract

The following information collection request (ICR) addendum covers revisions to the 2008 renovation, repair, and painting (RRP) rule which est ablished reporting and recordkeeping requirements for individuals and firms conducting renovations in target housing, which is most housing constructed before 1978, and child-occupied facilities, which are pre-1978 residential, public, or commercial buildings where children under 6 are regularly present. EPA is revising the 2008 RRP final rule under the authority of Sections 402 and 407 of the Toxic S ubstances Control Act (TSCA). This ICR addendum revises the existing approved ICR to incorporate repo rting and recordkeeping requirements in a rule expected to be published in the Federal Register on April 28, 2010.

Section 402(a) of TSCA requires EPA to develop and administer a training and certification program as well as work practice standards for pers ons who perform lead-based paint activities. The current regulations in 40 CFR part 745, subpart L, cover inspections, lead hazard screens, risk assessments, and abatement activities in target hous ing, which is most pre-1978 housing, and childoccupied facilities.

Like the regulations under Section 402(a) of TSCA, the regulations pertaining to renovation projects under Section 402(c)(3) of TSCA require repor ting and/or recordkeeping from three entities: firms engaged in renovatio ns in target housing and child-occupi ed facilities; training providers; and

States/Territories/Tribes/Alaskan Nativ e Villages (hereafter, the term “S tates” includes Territories, Tribes and Villages). Of these entities, the rule only affects firms and training providers. Accordingly, this document does not address the record keeping or re porting requirements for States. The following sections provide a general overview of the reporti ng and recordkeeping requirements for firms and training providers, discussed in more detail in section 4(b).

Firms. Firms that wish to engage in renovations in target housing or child-occupied facilitiesmust obtain certification from EPA/States. This includes firms consisting only of one selfemployed individual. To receive certificati on, a firm must submit a letter to EPA/States certifying that it will employ certified renovators and conduct renovations in target housing in accordance with the work pr actice standards. Firms must re-certify every five years. The rule also requires firms to develop and retain reco rds of the renovation activities they undertake to demonstrate compliance with standards and provid e a written record for future reference. In addition, for renovations in child-occupied fac ilities located in public or commercial buildings, the rule requires firms to provide the buildi ng owner and adult representative of the childoccupied facility with a lead hazard information pamphlet. After providing the pamphlet to the owner and occupant and obtain ing written acknowledgment, the firm must keep acknowledgment records on file for three years after completion of work. Renovation firms must also either (i) provide the lead hazard information pamphlet and general information on the renovation toOctober 20, 2009 Page 2 of 38 parents or guardians of children under age 6 usin g the facility, or (ii) erect signs that provide general information on the renovation accompanied by the pamphlet or information on how to obtain a copy of it. (Existing regulations requi re the distribution of a lead hazard information pamphlet, and the associated recordkeeping, before renovations in all target housing. This burden is reflected in EPA ICR No. 1669, Lead-Based Paint Pre-Renovation Information Dissemination – TSCA Sec. 406(b) , and is approved under OMB Control No. 2070-0158.) The reporting and recordkeeping requirements are necessary to provide EPA compliance monitoring and enforcement personnel with information necessary to track compliance activity and to prioritize inspections. The Agency believes that the distribution of the pamphlet will help to further reduce exposures that can cause serious lead poisonings in children under age six, who are particularly susceptible to the hazards of lead. Under the rule , firms would be required to provide information regarding compliance with the 2008 RRP rule to owners and occupants of target housing and child-occupied facilities.

Training providers. Training programs seeking to offer training for renovators or dust sampling

technicians must obtain EPA/State accreditation. In order for EPA/States to have the information necessary to evaluate and accredit the training programs, training providers must prepare and submit application packages. Training programs also must certain records related to their students and training personnel qualifications. Training programs are required to notify the Agency 1) prior to providing training courses, and 2) following completion of training courses. Training programs must apply for re-accredita tion every four years. These notification requirements are necessary to provide EPA comp liance monitoring and enforcement personnel with information necessary to track complian ce activity and to prioritize inspections.

2. Need for and Use of the Collection

2(a) Need/Authority for the Collection

Under Section 402(a)(1) of TSCA, the Agency must “...promulgate final regulations governing lead-based paint activities to ensure that individuals engaged in such activities are properly trained; that training programs are accredited; and that contractor s engaged in such activities are certified. Such regulations shall contain standards for performi ng lead-based paint activities, taking into account reliability, effectiveness and safety.”

Section 402(a)(2) states that “Final regulations promulgated under [section 402(a)] paragraph (1) shall contain specific requirements for the accreditati on of ... training progra ms ... including, but not

limited to:

- Minimum requirements for the accreditation of training providers;

- Minimum training curricula requirements;

- Minimum training hour requirements;

- Minimum hands-on training requirements;

- Minimum training competency and proficiency requirements;

- Minimum requirements for training program quality.”

Section 402(c)(3) directs EPA to revise its re gulations under TSCA Section 402(a) to apply to renovation and remodeling activities that create lead-b ased paint hazards. Section 407 of TSCA states that regulations shall include such recordkeepi ng and reporting requirements as may be necessary to ensure effective implementationOctober 20, 2009 Page 3 of 38 The Agency’s amendments to the regulations issued under Sections 402(a), 402(c)(3), 404, and 407 fulfill these statutory mandates.



### 2(b) Practical Utility/Users of the Data

Owners and Occupants of Target H ousing and Child-occupied Facilities

The rule will require renovation firms to provide training and work practice information to the owners and occupants of target hous ing and child-occupied facilities in a short, easily-read checklist or other form. This third-party notification will serve to reinforce the information provided by the lead hazard information pamphlet that renovation firms pr ovide to these persons be fore beginning renovations covered by this rule. By addressing the significant tr aining and work practice provisions of the RRP rule, this information will enable building owners and o ccupants to better understand what the renovation firm did to comply with the rule and how the rule’s prov isions affected their specific renovation. Educating the owners and occupants in this way is likely to improve their ability to assist the EPA in monitoring compliance with the RRP rule.

EPA

This information collection will provide EPA with the materials necessary to serve as the accrediting and certifying body in States w ithout authorized renovation programs.

EPA/States

This collection will enable EPA/States to determine compliance with and enforce the requirements for renovation-specific training, certifica tion, accreditation, and work practice standards. Without this collection, there would be no meaningful way of ensuring the implementation of the statutory objective: to ensure that trained individua ls conduct renovations in such a way as to minimize potential harm to occupants. The rule provides flexibility for individuals conducting renovations, by relying on guidance and training to help renovators de termine the best approaches to minimizing exposure to lead-based paint hazards created during renovation ac tivities. The Agency believes this is the best method for accommodating a variety of renovation projects and site-specific conditions.

It is the nature of certification and accreditation that an entity seeking such must provide materials to the certifying or accrediting body. The materials the Agency/State requires for these activities are central to the activity. In addition, EPA will be relying on training provider notifications to keep track of which individuals have received accred ited renovator training. This information will be a critical part of EPA’s compliance monitoring and enforcement activities.

It is also important to note that the re-accre ditation requirements for training programs are meant to ensure that training programs incorporate new de velopments and technologies in their courses and that individuals receive training in them. The Agency be lieves this will ensure that individuals and firms

conduct renovation activities in the safest and most effective manner possible.

The records renovation firms have to compile and retain are necessary as a reference for building owners/occupants, EPA or authorized entities. The records demonstrate that individuals conducting the activities do so in a safe and effective manner, acco rding to the minimum work practice standards established by the rule. These recordkeeping require ments are also necessary to permit the Agency to target its enforcement activities and to ensure comp liance within the contracting and training community.October 20, 2009 Page 4 of 38 3. Nonduplication, Consultations, and Other Collection Criteria

3(a) Nonduplication

The Agency’s collection pursuant to the TSCA 402/404/406/407 regulations does not duplicate any other collection. There is no other model progra m for lead-based paint activities and renovations, or associated State program approval process, and there are currently no other Federal requirements for the training and certification of indi viduals engaged in these activities, for the accreditation of training programs, required standards for the conduct of th ese activities, or lead hazard information distribution requirements for renovations in child-occupied facilities.

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

The notice of final rulemaking served as the public notice for this ICR addendum. Interested parties submitted comments. Res ponses were taken into account in developing the final rulemaking.

3(c) Consultations

During the development of the 2008 RRP rule, the Agency consulted with a broad range of interested parties, including States, training pr oviders, renovation contractors, and advocacy groups.

More information on EPA’s consultations with stak eholders can be found in the preamble to the 2006 RRP proposal and the preamble to the supplemental noti ce. Summaries and transcripts of meetings with

stakeholders can be found in the ru lemaking docket (EPA-HQ-OPPT-2005-0049).

3(d) Effects of Less Frequent Collection

Due to the nature of this regulation and its coll ection, less frequent collection is not feasible. In particular, each firm must obtain certification and re-certification, each training program must provide specific notification and documentation prior to co mmencement and upon completion of each course, and each renovation activity is a separate and unique event requiring specific documentation.

3(e) General Guidelines

This ICR is consistent with OMB’s general gui delines. The Agency is requiring that firms maintain records for three years and training providers to maintain records for three and one-half years.

3(f) Confidentiality

Neither the existing regulations nor the rule amendments address questions of a confidential

nature.

3(g) Sensitive Questions

Neither the existing regulations nor the rule am endments address questions of a sensitive nature.October 20, 2009 Page 5 of 38 4. The Respondents and the Information Requested

4(a) Respondents/NAICS Codes

Respondents for the reporting, third-party notifica tion and recordkeeping requirements of this rule include: 1) firms and individuals e ngaged in residential renovations, 2) firms and individuals engaged in renovations in child-occupied facilities, and 3) traini ng programs providing training services in lead-based paint activities and renovations. The North American Industrial Classification System (NAICS) codes

associated with industries most likel y affected by the paperwork require ments covered in the existing ICR

and this addendum are described below:

236118 Residential Remodelers

238210 Electrical Contractors 238220 Plumbing, Heating, a nd Air-Conditioning Contractors 238320 Painting and Wall Covering Contractors 238350 Finish Carpentry Contractors 238310 Drywall and Insulation Contractors 238170 Siding Contractors

238340 Tile and Terrazzo Contractors 238150 Glass and Glazing Contractors 238390 Other Building Finishing Contractors 238290 Other Building Equipment Contractors

531110 Lessors of Residen tial Buildings and Dwellings 531311 Residential Property Managers 541330 Engineering Services 541350 Building Inspection Services 611110 Elementary and Secondary Schools

611519 Other Technical and Trade Schools 624410 Child Day Care Services

4(b) Information Requested

The existing renovation regulations specify reporting and record keeping for training providers and individuals/firms undertaking reno vation activities. The rule is expected to increase the number of firms and renovators expected to seek certification and training.

(i) Data Items



### Training Providers

To comply with the Renovation, Repair, and Pa inting rule, training must notify EPA both before offering each course (to facilitate EPA’s enforcemen t activities) and after each course (so EPA has a record of the individuals who have completed the cour se). Training providers must use either the sample

form entitled “Lead-Based Paint Activities and Renovati on Training Notification” or a similar form containing the required information. Training provi ders may provide electronic submissions using the Agency’s secure, internet-based Cent ral Data Exchange (CDX). (The paperwork activities, and related burden and costs, associated with CDX user registrati on are described in another ICR that is currently approved by OMB under OMB Control No. 2025-0003.) The initial notice must include the following:

- Notification type (Original, Updated, Cancellation);

- Training program name, EPA accreditation number, address, and phone number;October 20, 2009 Page 6 of 38 - Course discipline, type (initial/refresher), a nd the language in which instruction will be given;

- Date(s) and time(s) of training;

- Training location(s) phone number, and street address;

- Principal instructor’s name; and

- Training manager’s name and signature.

Training providers must update the Agency regarding any changes to training dates, course locations, course cancellations, or other ch anges made to the original notice.

Following completion of lead-based paint activiti es, renovator, or dust sampling technician courses, training providers must provide notice using either the sample form, entitled “Lead-Based Paint Activities and Renovation Post-Training Notification” or a similar form containing the required information. Training providers may provide electronic submissions using the Agency’s CDX. The notice must include the following:

- Training program name, EPA accreditation number, address, and phone number;

- Course discipline and type (initial/refresher);

- Date(s) of training;

- The following information for each student who took the course:

o Name

o Address

o Date of birth

o Digital photograph

o Course completion certificate number

o Student test score

o Training manager’s name and signature

In addition, for renovator and dust sampling tec hnician courses, the training course provider must take a digital photograph of each trainee and submit it to EPA along with its training course follow-up

information.

Training course providers must maintain the following records:

- Records demonstrating the qualificatio ns of the training manager and the principal instructor(s);

- Current curriculum and course materials;

- Course test blueprints;

- Information on how hands-on assessments are conducted;

- Quality control plan;

- Results of students’ hands-on assessments and course test;

- Record of each student’s course completion certificate.



### Firms

The rule is expected to increase demand for certifie d firms, and therefore more firms are expected to seek certification to conduct renovation, repair an d/or painting activities involving lead-based paint. To obtain certification firms must submit specific ma terials to EPA/State, using either the sample EPA Form 8500-27R entitled “Application for Firms to Conduct Renovations” or a similar form containing the required information:

- List of current permits, licenses, certifications, or registrations in the lead-based paint field held by the firm;October 20, 2009 Page 7 of 38 - Explanation of any violations related to lead-based paint;

- Certification statement that the firm will employ only properly certified or trained individuals and that its employees will follo w the specified work practice standards.

On occasion, firms may later amend their applica tion to add or modify information. Certified firms must apply for re-certification every five years.

Firms performing renovations in target housin g and child-occupied facilities in public or commercial buildings must provide lead hazard inform ation pamphlets to property owners and tenants or child-occupied facility representatives. Firms must al so either (i) provide the pamphlet and general information on the renovation to parent s or guardians of children under ag e 6 using the facility, or (ii) erect signs that provide general information on the renovation accompanied by the pamphlet or information on how to obtain a copy. Firms must prepare and maintain documentation providing proof that pamphlets were provided to building owners and child-occupied facility representatives, or that an attempt was made to provide the pamphlets. Examples of such documentation include signed acknowledgment forms, self-certifications for failed deliveries, and postal receipts for mailings. Firms must also document their activities with respect to the notification of parents and guardians of childoccupied facilities. For example, the firm could pr epare a signed, dated description of the notification activities performed in connection with a particular renovation.

In addition, firms conducting renovations are required to maintain records demonstrating compliance with the final rule requirements for usin g certified renovators and properly trained workers, posting signs, containing the renovation work area, cleaning the renovation work area, and performing a post-renovation cleaning verification or dust clearance testing after the renovation activity has been completed. The rule will require these firms to give owners and if different, the occupants a checklist indicating that the firm complied with the rule requirements.

(ii) Respondent Activities

The rule is expected to increase the number of renovators that require training. Training providers will perform the following activities for the additional trainees that will seek renovation training:

- Submit an initial and, if needed, amende d notification of courses to be given;

- Provide notice of completion of all courses offered;

- Retain records; and

- Provide accrediting entity access to records as requested.

The rule is expected to increase the number firms seeking certification. Firms perform the following activities:

- Read the regulations;

- Submit applications for certification;

- Provide lead hazard information pamphlets to building owners and child-occupied facility operators and make them availa ble to parents/guardians; and

- Prepare and retain records.

The rule will also require all firms to complete the checklist and provide it to the owner and if different, the occupant of the target housing or child-occupied facility.October 20, 2009 Page 8 of 38 

### 5. Agency Activities, Collection Methodology, and Information Management

5(a) Agency Activities

EPA will perform the following activities in res ponse to the submittals required by this rule:

- Receive, review, and file initial, up date, and course completion notices and digital photographs of train ees from training providers; and

- Receive, review, and act on applications for certification from renovation firms.

5(b) Collection Methodology and Management

For purposes of this rule, the Agency will ma ke use of existing technology to simplify the application and notification process where possible. In addition to the more traditional methods (mail, commercial delivery service, or hand delivery), th e Agency would accept fax and e-mail course notifications from training providers as well as notifi cations through the Central Data Exchange (CDX). E-mail notification would have to be followed by a written notification for the record, but the original email notice would satisfy the applicable notification ti me requirements. In addition, firms may use CDX to apply for certification and re-certification.

5(c) Small Entity Flexibility

EPA has attempted to ensure that its regul atory requirements do not unduly burden small businesses. As part of the development process fo r the 2008 RRP rule, the Agency convened a Small Business Advocacy Review Panel under the Regulatory Fl exibility Act. More information on the Panel, and the Agency’s assessment of the impacts on small businesses, can be found in the preamble to the

2008 RRP rule.

5(d) Collection Schedule

For certification, and accreditation, collection activities will occur acco rding to the following

schedule:

- Training programs submit notification of training to EPA;

- Training programs submit post-training notification to EPA;

- Firms may apply for certification at any time;

- Firms must seek re-certification at five-year intervals following initial certification.

The Agency believes that receipt of notification 7 bu siness days prior to conducting training courses is necessary to facilitate the inspection of training locat ions. The regulation also includes provisions for updating the original notification. The Agency determ ined that the time periods for initial notification will also apply to a change in course location, or if the course is to be presented earlier than described in the original notification. Other changes, including cancellation of courses, need only be received by the Agency at least 2 business days before a training course is scheduled to begin. Such notification periods are appropriate to allow proper allocation of EPA compliance monitoring and enforcement resources, and to prevent the arrival of Agency personnel at the wrong location or time.October 20, 2009 Page 9 of 38 6. Estimating The Burden And Cost

This section estimates the incremental burden of reporting and recordkeeping for the revisions to the 2008 lead renovation, repair, and painting program final rule (73 FR 21692), also known as the RRP

or LRRP rule. This burden is incremental to the burden already accounted for in the existing, approved ICR (EPA ICR No. 1715.10). The estimates of the num ber of entities subject to the rule’s requirements and the unit burden and cost of the requireme nts were taken from the ICR supporting statement Final Rule Addendum to an Existing EPA ICR Entitled: TSCA Sections 402/404 Training and Certification, Accreditation, and Standards for Lead-Based Paint Activities (EPA ICR No. 1715.10, OMB 2070-0155),

the Economic Analysis for the TSCA Lead Renovation, Repair and Painting Program, Final Rule for Target Housing and Child-Occupied Facilities , also referred to as the Economic Analysis for the Final Rule, and from the Economic Analysis for the TSCA Lead Renov ation, Repair and Painting Program OptOut and Recordkeeping Final Rule for Target Housing and Child-Occupied Facilities (EPA 2008, 2010). This supporting statement provides burden and cost estimates for the first three years of the program. All costs are presented in year 2005 dollars.

Sections 6(a) and 6(b) estimate the respondents’ paperwork burdens and costs, respectively. Section 6(c) estimates EPA costs, section 6(d) summarizes the bottom line burden and costs, section 6(e) describes the reasons for changes in burden from the previous ICR, and section 6(f) presents the burden

statement.

The demand for certified firms and renovators is predicted to increase as a result of the elimination of the opt-out provision, and therefor e more firms and renovators are predicted to seek certification and training as a result of the revisions. Separate impacts are estimated for these firms and individuals that would not have otherwise sought certif ication and training without the elimination of the opt-out provision. Hereafter these entities are referred to as “opt-out entities.” Likewise, those firms and individuals that would have sought certification a nd training without the elimination of the opt-out provision are referred to as “currently regulated entities. ” The impacts of the revisions to the rule on the opt-out entities include all the costs associated with the requirements of the revised LRRP rule. In contrast, the only impacts of the revisions on the curr ently regulated entities are those associated with the recordkeeping requirement that renovation firms provide owners and occupants with a copy of the records demonstrating compliance with the training and work practice requirements of the RRP rule. This requirement is hereafter referred to as the “recordkeeping checklist requirement”.

6(a) Estimating Respondent Burden

Two types of respondents will be affected by this information collection request: training providers and entities performing renova tion, repair, and painting activities. 1 The paperwork burden associated with reporting and recordkeeping for these tw o types of respondents is estimated separately. The reporting estimates include the time associated with reviewing instructions, collecting the information needed to complete the notification fo rm, and completing and sending the notification forms to the appropriate authority. The recordkeeping burden estimates include the time required for the respondent to file a record of the information.

1 The rule allows for the training and use of a sampling technician to perform dust clearance testing following a renovation instead of performing cleaning verification. Because dust clearance testing is substantially more expensive than the cleaning verification, EPA expects few buildings to have dust clearance testing performed. Since the frequency of dust clearance testing is expected to be low, and therefore not to have a significant cost impact, this analysis assumes that cleaning verification is al ways performed instead of dust clearance testing.October 20, 2009 Page 10 of 38 Training Providers

To comply with the Renovation, Repair, and Painting rule, training providers must gain accreditation and keep records on both the courses they provide and the students they train. They must notify EPA both before offering each course (to fac ilitate EPA’s enforcement activities) and after each course (so EPA has a record of the indivi duals who have completed the course).

It is assumed that enough training providers will become accredited under the 2008 LRRP rule to cover the increased demand from RRP firms seeking certification and training as a result of the elimination of the opt-out provision. Therefore, it is estimated that no new training providers will become accredited as a result of the revisions. However, these training providers will have to offer more courses

due to the increased demand which will r esult in incremental notification costs.

Under the rule, pre-course notification is required at least 7 business days prior to the start of a lead-based paint activities course. Re-notification is re quired if the course date changes. Within 10 days of course completion, training providers are require d to submit a post-course notification. The following sections discuss how the reporting and recordkeeping burde n estimates in this analysis were developed. Exhibit 6.1 presents the estimation of Trai ning Provider burden for course notifications.

This analysis assumes that training providers w ill complete a separate notification form for each lead-based paint activity course conducted. The number of pre-course and post-course notification events was estimated by dividing the total number of students in a given year by an estimated average class size of 25 students and the estimated number of training providers. (See the Economic Analysis of the 2008 LRRP rule (EPA 2008) for details.) The numbers of notification events were rounded upwards to reflect the possibility that some courses will be under subscr ibed. There is one pre-notification and one postnotification for each training course, with an av erage burden of 0.15 a nd 1.54 hours each. (Postnotifications are more time consuming because the Training Provider must send records pertaining to each student who attended the course.) In addition, some courses may require re-notification. Renotification events are calculated based on notificati on events in the FLPP database. Re-notifications occur for approximately 12 percent of original pre-co urse notifications, and are also estimated to require

0.15 hours of time. Estimates of the amount of tim e required to complete the pre-course and post-course notification forms are determined in the existing approved ICR.

The training provider burden estimates described above also include the recordkeeping burden associated with filing a one page record of the notific ation form sent to the administering agency. An

estimate of the amount of time needed to file a reco rd was adopted from the existing approved ICR, and is estimated to be 0.01 hours per training event.

Training providers are also required to take a digital photo of each cer tified renovator upon initial and refresher training. The estimated time burden associated with taking and processing each photo is 3 minutes per photo (EPA 2008), or 1.25 hours per training course of 25 individuals.

As presented below in Exhibit 6.2, the burden fo r all training providers is estimated to be 15,127 hours in Year 1 of the regulation, 3,007 hours in Year 2, and 2,977 hours in Year 3. (The burden drops

to reflect the decrease in the number of renovators needing training each year, since initial training is generally only needed for new entran ts to the market and retraining is only required every five years.) The average annual aggregate burden for training provide rs over the three years covered by this ICR is 7,037 hours.October 20, 2009 Page 11 of 38 Exhibit 6.1 Training Providers: Notification Burden

Events per Training Provider Category
Year 1 Year 2 Year 3 Avg. Reporting

Hours/Event Recordkeeping

Hours/Event Total

Hours/Event

Pre-notification 30 6 6 14 0.15 0.01 0.16

Re-notification 4 1 1 2 0.15 0.01 0.16

Post-notification 30 6 6 14 1.54 0.01 1.55 Digital Photo 30 6 6 14 1.25 0.00 1.25

Annual Total 94 19 19 44

Notification Burden Hours per Training Provider

Year 1 Year 2 Year 3

90 18 18

Training Providers per Year

Year 1 Year 2 Year 3

168 167 166

Total Notification Burden Hours per Year

Year 1 Year 2 Year 3
15,127 3,007 2,977

Note(s): Numbers may not calcula te due to rounding.

Sources: Economic Analysis for the Opt-Out and Recordkeeping Final Rule (EPA 2010).

Exhibit 6.2 Total Training Provider Burden

Year 1 Year 2 Year 3 Average Total Burden 15,127 3,007 2,977 7,037 Note(s): Numbers may not calculate due to rounding.

Sources: Economic Analysis for the Opt-Out and Recordkeeping Final Rule (EPA 2010).

Renovation, Repair, and Painting Firm s: Certification-Related Burden

Under the revisions to the renovation, repair, a nd painting (RRP) rule, firms wishing to conduct renovations in opt-out housing would be required to apply for certification. 2 They would also be required to keep records reflecting RRP events conducted by trained employees. This ICR presents the costs to firms seeking certification as a result of the elimination of the opt-out provision.

It is estimated that firms that become certif ied under the rule will spend a total of three hours familiarizing themselves with the rule’s requirements when they are initially certified. They will spend another half an hour filling out a nd mailing the Application for Firm Certification each time they are certified or re-certified. (Re-certification is required ev ery five years.) As shown in Exhibit 6.3, 111,426 firms are estimated to become certified in the first ye ar as a result of the rule. In the second year, 22,193 firms will become certified (19,974 initial certificati ons and 2,219 re-certifications). When combined with the 88,775 firms still operating that are already certif ied, this yields a total of 110,968 certified firms.

2 Only target housing contractors would be affected by the elimination of the opt-out provision.October 20, 2009 Page 12 of 38 In the third year, 22,103 firms will become certif ied (19,893 initial certifications and 2,210 recertifications). When combined with the 88,411 firms still operating that are already certified, this yields a total of 110,514 certified firms. The number of firm s certified each year is calculated in the Economic Analysis for the Opt-Out and Recordkeeping Final Rule (EPA 2010).

Averaged across three years, th ere are an estimated 110,969 opt-out entities operating annually, all of which are private firms. Sma ll businesses comprise 110,672 of these firms.

Additionally, all RRP firms, regardless of whethe r they are applying for certification in a given year, will spend time keeping records of RRP work. An estimate of the amount of time needed to file a record was adopted from EPA ICR No. 1715.07. On average, RRP firms will spend 4.8 hours on recordkeeping per year. This is based on a burden of 5 minutes per response and an average of 58 responses per firm. The number of events per firm is estimated in the Economic Analysis for the Opt-Out and Recordkeeping Final Rule (EPA 2010).

In the first year, it is assumed that the number of firms that seek certification is equal to the number that is necessary to meet the demand for lead -safe RRP services in that first year. From the second year on, this analysis makes the simplifying assumption that one fifth of the number of firms certified in the first year seek initial- or re-certifica tion year (since re-certification is required every five years). The number of certifications is assumed to decline by 0.41 percent annually to reflect the decline in the pre-1978 housing stock

As indicated above, this analysis assumes a stead y annual number of firm certifications after the second year of regulation. If all the firms needed to meet the demand for lead-safe RRP were certified in the first and second years, one might expect a drop in the level of certification in the third year, followed by a spike in the next year. That is, one might exp ect a cyclical pattern of training and certification to emerge. However, it is difficult to predict how cy clical training and certification demand might be, or how this cyclicality might diminish over time. Theref ore, this analysis assumes that a typical amount of certification occurs each year after the first two years because modeling a cyclical component would add little to the analysis without being able to estimat e the extent of any cyclicality more precisely.

This analysis accounts for turnover in the regulated RRP industry by assuming a certain percentage of certifications each year are initial certifi cations. Specifically, after the first year, 90 percent of firms seeking certification are assumed to be seek ing their initial certification based on the relative annual average frequency of initial certifications observed for abatement firms in FLPP database.

As presented below in Exhibit 6.4, this amendm ent estimates the burden for all opt-out firms conducting renovations in Year 1 to be 924,836 hours fo r all entities. The burden is estimated to be 603,665 hours for all opt-out firms in Year 2, and 6 01,198 hours in Year 3 (reflecting the decrease in the number of opt-out firms needing certification, since re -certification is only required every five years). There is an annual average of 709,899 hours during th e three year period covered by this ICR. This yields an average burden of 6.4 hours per year for opt-out RRP firms.October 20, 2009 Page 13 of 38 Exhibit 6.4: Average Annual Number of Certifications and Burden per Response

Number of Small

Respondents Number of Respondents Burden per Response (hours)*

Private Firms Initial Certification 50,296 50,431 8.3 Recertification 1, 472 1,476 5.3 No Certification 58,904 59,062 4.8 Total 110,672 110,969 Note(s): * Includes annual recordk eeping time of 4.8 hours.

Sources: Economic Analysis for the Opt-Out an d Recordkeeping Final Rule (EPA 2010).

Total Certification/Recordkeeping Burden- Hours Entities Seeking Certific ation as a Result of Elimi nating the Opt-Out Provision Year 1 Year 2 Year 3 Average Rule Familiarization 334,278 59,922 59,679 151,293 Certification Form 55,713 11,097 11,052 25,954 Recordkeeping 534,845 532,646 530,467 532,653 Total 924,836 603,665 601,198 709,899 Note(s): Numbers may not calculate due to rounding. Re-certification re quired every five years.

Sources: Economic Analysis for the Opt-Out and Recordkeeping Final Rule (EPA 2010).

Renovation, Repair, and Painting Firms – Burd en Related to Recordkeeping Checklist

Under the revisions to the 2008 LRRP rule, all re novation firms are required to provide a copy of the records demonstrating compliance with the training and work practice requirements of the RRP rule to the owner and, if different, the occupant of the bui lding being renovated or the operator of the childoccupied facility. Firms performing work in ow ner-occupied target housin g would be required to distribute one copy of the checklist while firms perfo rming work in renter-occupied target housing would be required to provide a copy each to the owner and the occupant. If the work occurs in the common area of an apartment building, the checklist, or informati on on how to obtain the checklist, must be posted on a Exhibit 6.3 Number of Certified Firms

Year 1 Year 2 Year 3 Average
Entities Seeking Certific ation as a Result of Elimi nating the Opt-Out Provision Receiving Initial Certification 11 1,426 19,974 19,893 50,431

Receivin g Re-Certification 0 2,219 2,210 1,476
Subtotal: Firms Receiving Certification or Re-Certification 111,426 22,193 22,103 51,907 Already Certified - Not Receiving

Certification or Re-Certification 0 88,775 88,411 59,062

Total 111,426 110,968 110,514 110,969

Certification/Re-Certification/Recordkeeping Burden- Hours Per Firm

Certification Year Re-Certification

Year Other Years

Rule Familiarization 3 0 0

Certification For m 0.5 0.5 0 Recordkeeping 4.8 4.8 4.8

Total 8.3 5.3 4.8October 20, 2009 Page 14 of 38 sign in the common area or delivered to each of the a ffected units. (This analysis always assumes that a sign will be posted.) Child-occupied facilities that pe rform work themselves must post the checklist, or information on how to obtain the checklist, on a sign th at is accessible to parents or guardians of the

children or mail this information to these individuals. Similarly, landlords that perform work would have to supply one copy of the checklist attached to a si gn in the area where the work is being performed or provide a copy to each affected unit. Contractor s who perform work in owner-occupied COFs must provide two copies of the checklist: one copy to the owner of the COF and one copy to be posted on a sign in the COF (they may also choose to mail this info rmation to the parents or guardians). In addition to the two copies required in owner-occupied events, contractors working in renter-occupied COFs must also provide the operator of the COF with a third copy of the checklist.

Number of RRP Firms and Events Performed

All RRP firms are required to comply with th e recordkeeping checklist provision during each RRP event they perform. As discussed in detail in Section 4.4 of the Economic Analysis for the Opt-Out and Recordkeeping Final Rule ( EPA 2010), 323,147 entities (111,426 opt-out and 211,721 currently regulated) are expected to perform RRP events in Year 1. Exhibit 6.5 presents the number of opt-out and currently regulated firms that are expected to in cur costs as a result of th e recordkeeping checklist provision and elimination of the opt-out provision. Exhibit 6.5 also presents the estimated number of events these firms will perform. Events are presented in groups based on the number of checklist copies required for each type of event.

Exhibit 6.5 

### : Number of Opt-Out and Currently Regulated Firms and RRP Events

Year 1 Year 2 Year 3 Number of RRP Firms

RRP Entities Certified as a Result of Eliminating the Opt-Out Provision 111,426 110,968 110,514 RRP Entities Regulated under the 2008

LRRP Rule 211,721 210,853 209,989 Total - All Entities 323,147 321,821 320,503 Number of RRP Events Events as a Result of Eliminating the Opt-Out Provision Owner Target Housing 7,271,555 7,241,742 7,212,050 Events Currently Regulate d under the 2008 LRRP Rule Owner Target Housing 1,459,940 1,453,954 1,447,993 Renter Target Housing 9,572,191 9,532,945 9,493,860

In-House/Landlord a 100,056 99,646 99,238

Owner COF Contractor b 267,534 266,437 265,344

Renter COF Contractor c 12,900 12,847 12,794 Subtotal – Currently Regulated Events 11,412,621 11,365,829 11,319,229 Total - All Events 18,684,176 18,607,571 18,531,280 Source(s): Economic Analysis for the Opt-Out and Recordkeeping Final Rule (EPA 2010). a. RRP is performed by the owner of a public or commercial building. b. RRP is performed by a contractor in an owner-occupied public or commercial building. c. RRP is performed by a contractor in a renter-occupied public or commercial building.

Exhibit 6.6 shows the three-year average annua l number of respondents to the recordkeeping checklist requirements. During the three year span of this ICR, it is estimated that an average of 110,969 private firms, of which 110,672 are small, will seek certification as a result eliminating the opt-out provision. An additional 210,855 cu rrently regulated entities, of which 207,340 are small, are estimated to incur costs of complying with the checklist provision requirements.October 20, 2009 Page 15 of 38 Exhibit 6.6: Average Annual Number of R ecordkeeping Checklist Respondents, Responses per Respondent, and Burden per Response

Number of

Small Respondents Number of Respondents Responses

per Respondent Burden per Response

(hours) RRP Entities Certified as a Result of E liminating the Opt-Out Provision Private Entity 110,672 110,969 65.26 0.05

State/Local Gov 0 0 0.00 0 Entities Currently Regulated by the 2008 LRRP Rule Private Entity 200,202 203,105 55.65 0.05 State/Local Gov 7,138 7,750 8.13 0.05

Sources: Economic Analysis for the Opt-Out an d Recordkeeping Final Rule (EPA 2010).

Estimated Burden per Event

All renovation firms are required to provide a copy of the records demonstrating compliance with the training and work practice requirements of the RRP ru le to the owner and, if different, the occupant of the building being renovated or the operato r of the child-occupied facility.

This analysis estimates the per-event burden of preparing photocopies and distributing the

checklist. It is estimated that it will take entities performing RRP jobs an average of three minutes to photocopy and distribute the checklist.

Estimated Total Burden

Exhibit 6.7 presents the total burden and cost to respondents resulting from the recordkeeping checklist requirements. Total respondent burden w as estimated by multiplying the numbers of RRP events by the corresponding per event burden estimates.

Exhibit 6.7 

### : Total Recordkeeping Checklist Prov ision Burden Due to the Rule

Total Burden Hours

Year 1 Year 2 Year 3 RRP Entities Certified as a Result of E liminating the Opt-Out Provision Owner Target Housing 363,578 362,087 360,603 Entities Currently Regulated by the 2008 LRRP Rule Owner Target Housing 72,997 72,698 72,400 Renter Target Housing 478,610 476,647 474,693

In-House/Landlord a 5,003 4,982 4,962

Owner COF Contractor b 13,377 13,322 13,267

Renter COF Contractor c 645 642 640 Subtotal – Currently Regulated Events 570,631 568,291 565,961 Total - All Events 934,209 930,379 926,564 Note(s): Numbers may not calcula te due to rounding.

Sources: Economic Analysis for the Opt-Out and Recordkeeping Final Rule (EPA 2010).October 20, 2009 Page 16 of 38 6(b) Estimating Respondent Costs

Introduction

The cost estimates addressed in this section are based on the burden estimates discussed in section 6(a). Wage rates for each category of personn el are based on wage rate information from the Bureau of Labor Statistics (BLS) 3 . Following are the wage rates used in this analysis, which are fully loaded (i.e., include fringe benefits a nd overhead), and are in 2005 US dollars 4 :

Training Provider Clerical Time $23.54/hr

RRP Firm Wage Rate $31.64/hr 5

Training Providers

The loaded wage rate for training provider cleric al staff is $23.54 per hour. Clerical staff will prepare and mail notifications and will perform reco rdkeeping activities. Training provider costs also include $0.37 per postage stamp a nd $0.02 per envelope for mailing notif ications and $0.08 per one page copy of each notification for the firm’s records. Tr aining providers are also required to take a digital photo of each renovator receiving certification. The us e of a one-time digital camera costs $20.58 per 25 photos and takes approximately three minutes per photo or 1.25 hours per 25 photos.

Exhibit 6.8 estimates the annual cost for training provider notifications. As shown in Exhibit 6.9, total training provider costs are estimated to be $465,625 in the first year of the rule, $92,571 in the second year, and $91,639 in the third year. The aver age annual cost over the three years covered by the ICR is $216,612. This yields an average cost of $1,297 per training provider.

3 U.S. Bureau of Labor Statistics. 2005. Occupational Employment Statistics Series.

4 Firm Wage Rates were Inflated from 2004 US dollars to 2005 US dollars the BLS Employment Cost Index for the Construction Industry.

5 Certified renovators’ fully loaded wages ($31.64/hour) are estimated from BLS wage data for First-Line Supervisors/Managers of Construction Trades and Extraction Workers (Occupation 47-1011) who work in the residential building construction industry. Wages are fully loaded to account for fringe benefits with an average fringe rate for the construction industry of 23.5 percent.October 20, 2009 Page 17 of 38 Exhibit 6.8 Training Providers : Notification Cost Estimates

Events per Training Provider Category
Year 1 Year 2 Year 3 Avg. Reporting

Cost/Event Recordkeeping

Cost/Event Materials

Cost/Event Total

Cost/Event

Pre-notification 30 6 6 14 $3.53 $0.24 $0.47 $4.24

Re-notification 4 1 1 2 $3.53 $0.24 $0.47 $4.24

Post-notification 30 6 6 14 $36.25 $0.24 $0.47 $36.96
Digital Photo 30 6 6 14 $29.43 $0.00 $20.58 $50.00

Cost per Training Provider

Year 1 Year 2 Year 3
$2,772 $554 $552

Training Providers per Year

Year 1 Year 2 Year 3

168 167 166

Total Cost per Year

Year 1 Year 2 Year 3
$465,625 $92,571 $91,639

Note(s): Numbers may not calcula te due to rounding.

Sources: Economic Analysis for the Opt-Out and Recordkeeping Final Rule (EPA 2010); EPA ICR No. 1715.07; and U.S. Bureau of Labor Statistics Occupational Employment Statistics Series (2005).

Exhibit 6.9 Total Training Provider Costs - 2005 Dollars

Year 1 Year 2 Year 3 Average Total Notification Cost $465,625 $92,571 $91,639 $216,612
Note(s): Numbers may not calculate due to rounding.

Sources: Economic Analysis for the Opt-Out and Recordkeeping Final Rule (EPA 2010); EPA ICR No. 1715.07; and U.S. Bureau of Labor Statistics Occupational Employment Statistics Series (2005).

RRP Firms – Costs Related to Certification

The elimination of the opt-out provision is e xpected to increase the number of firms seeking

certification. This ICR accounts for the burden and costs associated with these additional firms seeking certification. The average cost associated with initial certification is $111 per response, based on a response time of 3.5 hours and a loaded renovator wage rate of $31.64. The average re-certification cost per response is about $16. In a ddition to labor costs, firm certific ation costs also include $0.37 per postage stamp and $0.02 per envelope for mailing no tifications and $0.08 per one page copy of each notification for the firm’s records. (Costs have not been updated from 2005 dollars in order to facilitate comparison with previous information collection request s, which were also in 2005 dollars. Consistent with this, postage costs have not been updated to 2009 .) All firms incur a recordkeeping cost of $152 per

response.October 20, 2009 Page 18 of 38 As presented below in Exhibit 6.10, based on the burden estimates provided in section 6(a) and the wage rates discussed above, the co sts associated with certification applications for all opt-out firms conducting renovations is estimated to be $29,323,089 in Year 1, $19,112,164 in Year 2, and $19,034,052 in Year 3. The average annual cost for these opt- out entities is $22.5 million over the three years covered by this ICR, resulting in an average cost per opt-out firm of $203.

Exhibit 6.10 Opt-Out Firms: Certification Cost Estimates

Number of Firms

Year 1 Year 2 Year 3 RRP Entities Certified as a Result of Eliminating the Opt-Out Provision

Receivin g Initial Certification 111,426 19,974 19,893 Receiving Re-Certifi cation 0 2, 219 2,210 Subtotal: Firms Receiving Certification or Re-Certification 111,426 22,193 22,103 Already Certified - Not Receiving Certification or Re-Certification 0 88,775 88,411 Total 111,426 110,968 110,514

Total Certification/Recordkeeping Costs - 2005 Dollars Year 1 Year 2 Year 3 Average
RRP Entities Certified as a Result of E liminating the Opt-Out Provision Rule Familiarization $10,576,556 $1,895,932 $1,888,244 $4,786,911 Certification Form $1,762,759 $351,093 $349,669 $821,174 Recordkeeping $16,922,489 $16,852,932 $16,783,982 $16,853,135 Material Costs $61,284 $12,206 $12,157 $28,549 Total $29,323,089 $19,112,164 $19,034,052 $22,489,768
Note(s): Numbers may not calculate due to rounding.

Sources: Economic Economic Analysis for the Opt-Ou t and Recordkeeping Final Rule (EPA 2010); EPA ICR No. 1715.07; and U.S. Bureau of Labor Statistics Occupational Employment Statistics Series (2005).

RRP Firms – Costs Related to Recordkeeping Checklist Provision

Under the revisions to the 2008 LRRP rule, all re novation firms are required to provide a copy of the records demonstrating compliance with the training and work practice requirements of the RRP rule to the owner and, if different, the occupant of the bui lding being renovated or the operator of the childoccupied facility. This additional requirement woul d pertain to all firms, those regulated under the 2008

LRRP rule as well as those that would not have ot herwise sought certification and training without the elimination of the opt-out provision. Firms perform ing work in owner-occupied target housing would be required to distribute one copy of the checklist while firms performing work in renter-occupied target housing would be required to provide a copy to the owner and occupant. If the work occurs in the common area of an apartment building, the checklist, or information on how to obtain the checklist, must be posted on a sign in the common area or delivered to each of the affected units. (This analysis always Certification/Re-Certification/Recordkeeping Cost per Firm - 2005 Dollars

Certification Year Re-Certification

Year Other Years
Average Cost Per Response
Rule Familiarization $94.92 $0.00 $0.00

Certification For m $15.82 $15.82 $0.00 Recordkeeping $151.87 $151.87 $151.87

Material Costs $0.55 $0.55 $0.00 Total $263.16 $168.24 $151.87October 20, 2009 Page 19 of 38 assumes that a sign will be posted.) Child-occupied facilities that perform work themselves must post the checklist, or information on how to obtain the checklist, on a sign that is accessible to parents or guardians of the children or mail this information to these individuals. Similarly, landlords that perform work would have to supply one copy of the checklist attached to a sign in the area where the work is being performed or provide a copy to each affect ed unit. Contractors who perform work in owneroccupied COFs must provide two copies of the checklis t: one copy to the owner of the COF and one copy to be posted on a sign in the COF (they may also choose to mail this information to the parents or guardians). In addition to the two copies required in owner-occupied events, contractors working in renter-occupied COFs must also provide the operato r of the COF with a third copy of the checklist.

In addition to the time needed to prepare phot ocopies and distribute the checklist, entities performing RRP events will also incur the cost of photocopy materials. Based on per-page photocopy costs, EPA estimates that a single co py of the checklist costs $0.08. E xhibit 6.11 presents resulting perevent checklist costs.

Exhibit 6.11 Number of Checklist Copies and Cost per Event

Target Housing Events Public and Commercial Building Events

Owner Renter In-house /

Landlord b Contractor –

Owner c Contractor –

Renter d

Labor Cost a $1.58 $1.58 $1.58 $1.58 $1.58

Material Cost e $0.08 $0.16 $0.08 $0.16 $0.24

Total Cost $1.66 $1.74 $1.66 $1.74 $1.82 a. Based on a burden of 3 minutes, at a wage rate of $31.64 , based on Bureau of Labor Statistics (SOC 47-1011) b. RRP is performed by the owner of a public or commercial building. c. RRP is performed by a contractor in an owner-occupied public or commercial building. d. RRP is performed by a contractor in a renter-occupied public or commercial building. e. The average price of a photo copy at Copy Co p, Kinkos, Staples, and Office Max is eight cents.

Sources: Economic Analysis for the Opt-Out and Recordkeeping Final Rule (EPA 2010).

Exhibit 6.12 presents the estimated total costs of the recordkeeping checklist provision to entities performing RRP events. RRP firms will incur time burden and material costs, presented in Exhibit 6.7 and Exhibit 6.11, respectively. To estimate total la bor costs associated with th e recordkeeping checklist, the total burden estimates in Exhibit 6.7 were multiplied by the loaded wage rate for clerical staff ($31.64 per hour). Total pamphlet costs were estimated by multiplying the numbers of events in Exhibit 6.5 and by the corresponding per-event pamphlet cost estimates in Exhibit 6.11.October 20, 2009 Page 20 of 38 6(c) Estimating Agency Cost

There are also government costs to administer the program. States, Tribes, and Territories are allowed, but are under no obligation, to apply for and receive authorization to administer these requirements. EPA will directly administer programs for States, Tribes, and Territories that do not become authorized. Because the number of States, Trib es, and Territories that will become authorized is not known, administrative costs are estimated assuming that EPA will administer the program everywhere. To the extent that other government entities become authorized, EPA’s administrative costs will be lower. States, Tribes, and Territories that c hoose to implement the rule themselves are expected to incur similar costs on a per-unit basis.

Under the preferred regulatory option, EPA will pe rform two tasks as part of administering the RRP program: certify firms and process training provi der notifications. To reduce the burden on the Exhibit 6.12 Total Costs Associated with the Record keeping Checklist Provision

Year 1 Year 2 Year 3

Total Labor Cost
Entities Seeking Certific ation as a Result of Elimi nating the Opt-Out Provision Owner Target Housing $11,503,600 $11,456,435 $11,409,464
Entities Currently Regulated under the 2008 LRRP Rule Owner Target Housing $2,309,625 $2,300,156 $2,290,725 Renter Target Housing $15,143,206 $15,081,119 $15,019,286 In-House/Landlord $158,289 $157,640 $156,994 Owner COF Contractor $423,238 $421,503 $419,775 Renter COF Contractor $20,408 $20,324 $20,241 Subtotal $18,054,766 $17,980,742 $17,907,021 Total - All Entities $29,558,366 $29,437,177 $29,316,485

Total Materials Cost
Entities Seeking Certific ation as a Result of Elimi nating the Opt-Out Provision Owner Target Housing $581,724 $579,339 $576,964
Entities Currently Regulated under the 2008 LRRP Rule Owner Target Housing $116,795 $116,316 $115,839 Renter Target Housing $1,531,551 $1,525,271 $1,519,018 In-House/Landlord $8,005 $7,972 $7,939 Owner COF Contractor $42,805 $42,630 $42,455 Renter COF Contractor $3,096 $3,083 $3,071

Subtotal $1,702,252 $1,695,272 $1,688,322 Total - All Entities $2,283,976 $2,274,612 $2,265,286

Total Cost
Entities Seeking Certific ation as a Result of Elimi nating the Opt-Out Provision Owner Target Housing $12,085,324 $12,035,775 $11,986,428
Entities Currently Regulated under the 2008 LRRP Rule Owner Target Housing $2,426,420 $2,416,472 $2,406,564 Renter Target Housing $16,674,757 $16,606,390 $16,538,304 In-House/Landlord $166,294 $165,612 $164,933 Owner COF Contractor $466,044 $464,133 $462,230 Renter COF Contractor $23,504 $23,407 $23,311

Subtotal $19,757,018 $19,676,014 $19,595,343 Total - All Entities $31,842,342 $31,711,789 $31,581,771

Sources: Economic Analysis for the Opt-Out and Recor dkeeping Final Rule (EPA 2010); EPA ICR No. 1669.04 (2004); U.S. Bureau of Labor Statistics O ccupational Employment Statistics Series (2005); The average price of a photo copy at Copy Cop, Kinkos, Staples, and Office Max is eight cents.October 20, 2009 Page 21 of 38 regulated community, EPA’s preferred option does not in clude formal certification for renovators or dust sampling technicians.

Agency Cost of Processing Training Notifications

As it is estimated that no traini ng providers will seek accreditation as a result of the revisions to the 2008 LRRP Rule, EPA will only incur the cost of processing notifications submitted by training providers prior to and following each course session. It is assumed that EPA technical staff with a fully loaded hourly wage of $34.69 6 will spend an average of two minutes processing each notification.

It is estimated that there will be 10,765 training notifications in Year 1, 2,140 in Year 2, and 2,119 in Year 3. As shown in Exhibit 6.13, it w ill cost EPA $12,477 to process training notifications in the first year of the rule, $2,475 in Year 2, and $2,450 in Year 3.

Exhibit 6.13 Total EPA Cost of Processing Training Notifications – 2005 Dollars

Year 1 Year 2 Year 3 Process Training Notification $12,447 $2,475 $2,450 Total $12,447 $2,475 $2,450
Note(s): Numbers may not calcula te due to rounding.

Sources: Economic Analysis for the Opt-Out and Recordkeeping Final Rule (EPA 2010); U.S. Office of Personnel Management: 2005 General Schedule - Base Annual (OPM 2005).

Agency Costs of Certifying Renovation Firms

The revisions to the 2008 LRRP Rule will require opt-out renovation establishments to submit a completed application and fee. For the purpose of estimating costs, it is assumed that EPA Regions will incur variable processing costs, and fixed administrati ve and enforcement costs. Regional administrative activities include answering phone inquires from th e public regarding the LRRP program, following up on the status of applications, providing information to other regions, coordinati ng with headquarters, and performing other customer service activities. Enforcem ent activities include conducting audits of training providers and firms. In addition, it is assumed th at EPA Headquarters will incur fixed administrative

costs related to coordination with regions and maintenance of the cent ral database and registry. EPA Headquarters will also support enforcement activities.

Certification cost estimates are based on r esponses from a Time-Motion Study conducted in support of the 2009 Economic Analysis for the TSCA section 402 Lead-Based Paint Program Accreditation and Certification Fee Rule (i.e., the Fee Rule). In the Time-Motion Study, data were collected from three EPA Regions: Region 2, Region 4, and Region 9. Regions were asked to provide the number of hours and personnel required to process applications under the TSCA section 402(a) LeadBased Paint Activities program (i.e., the Abatement Ru le). While TSCA section 402(a) defines training and certification requirements for five different categ ories of lead abatement professionals, the type of

administrative activities associated with the TSCA secti on 402(a) rule are similar to those expected for the Renovation, Repair and Painting Rule.

6 EPA used the Office of Personnel Management’s General Salary Table 2005-GS to estimate government employee wage rates. EPA used the wage for a GS-11, Step 1 employee and loaded the wage using the standard government multiplier of 1.6 to cover overhead and fringe benefits.October 20, 2009 Page 22 of 38 To estimate fees for the LRRP rule, EPA followe d the approach used to estimate fees for the Abatement rule. To structure the fees, EPA first cons idered the variable and fixed costs associated with each applicant type. The variable costs reflect th e regional processing costs for each application type. The fixed costs include the regional and headquarters administrative and enforcement costs, which apply across all the applications. EPA divided the total re gional enforcement and administrative costs and the headquarters costs by the total estimated number of applicants over the five year projection period to obtain a fixed cost of $282 for training providers and firms.

Fixed costs for renovators and sampling technician s were estimated by dividing the headquarters administrative costs by the total number of applicants over the five year period to obtain a fixed cost of $6. As renovators and sampling technicians are not re quired to obtain formal certification, their fixed costs are recouped by the fee charged to RRP firms. In addition, tribes will be charged a nominal fee ($20 for firm applicants, and $10 for individual certific ations) and firms applying for both an Abatement certification and a LRRP certification will only be charged for the more expensive Abatement certification. Firms that are ineligible for these disc ounts will be charged an additional $9 to cover the costs of the discounts. See the 2009 Fee Rule for an in-depth explanation of fee structure methodology and calculations. Exhibit 6.14 presents the fee schedule developed in th e Economic Analysis for the Fees Rule. The actual fee charged to firms was rounded to $300; the rounded fee is used in subsequent

calculations.

As described earlier in Exhibit 6.3, it is estima ted that 111,426 firms would become certified in Year 1. In Year 2, 22,193 firms are expected to seek certification or re-certification, and in Year 3, 22,103 firms are expected to be certified or re-cer tified. As shown in Exhibit 6.15, based on these estimates, it will cost EPA $33 million to certify these firms in Year 1. EPA’s costs for firm certifications
are estimated to be less than $7 million in Years 2 and 3.

Exhibit 6.15 Total Costs of Certifying Renovation Establishments

Year 1 Year 2 Year 3
Entities Seeking Certific ation as a Result of Elimi nating the Opt-Out Provision

Firms Seeking Certification 111,426 22,193 22,103 Total Cost of Certification $33,427,800 $6,657,900 $6,630,900
Note(s): Numbers may not calculate due to rounding.

Sources: Analysis for the Opt-Out and Recordkeeping Final Rule (EPA 2010); The Economic Analysis for the TSCA section 402 Lead-Based Paint Program Accreditation and Certification

Fee Rule (EPA 2009) Exhibit 6.14 Fee Schedule for Cert ifying Renovation Establishments

Avg. Processing

Cost Per Applicant Fixed Cost Additional Fee (to cover costs of discounts) Total Fee

Estimated Initial Certification Fee $11 $282 $9 $301
Estimated Re-Certification Fee $12 $282 $9 $302 Actual Fee Charged $300
Note(s): numbers may not calculate due to rounding.

Sources: The Economic Analysis for the TSCA section 402 Lead-Based Paint Program Accreditation and Certification Fee Rule (EPA 2009)October 20, 2009 Page 23 of 38 6(d) Bottom Line Burden Hours and Cost

The number of respondents is shown in Exhibit 6.16, and the number of responses in Exhibit 6.17. The respondent burden for the collection of notification information is shown in Exhibit 6.18. The annual paperwork burden over the first three years is estimat ed to average 1,647,321 hours. The average annual respondent cost for the collection of notification inform ation is shown in Exhibit 6.19 and is estimated to be $54 million. The Agency cost is estimated to average $15.5 million per year, as shown in Exhibit

6.20.

Exhibit 6.16 Number of Respondents

Year 1 Year 2 Year 3 Average Training Providers 168 167 166 167 Opt-Out Entities 111,426 110,968 110,514 110,969 Currently Regulated

Entities 211,721 210,853 209,989 210,854 Total 323,315 321,988 320,669 321,991

Exhibit 6.18 Respondent Burden Hours

Year 1 Year 2 Year 3 Average Training Providers 15,127 3,007 2,977 7,037 Opt-Out Firm

Certification 924,836 603,665 601,198 709,899 Opt-Out Firm Checklist 363,578 362,087 360,603 362,089 Currently Regulated

Checklist 570,631 568,291 565,961 568,295 Total 1,874,172 1,537,051 1,530,739 1,647,321 Exhibit 6.17 Number of Responses

Year 1 Year 2 Year 3 Average Training Provider Notifications 10,765 2,140 2,119 5,008 Opt-Out Firm Initial Certifications 111,426 19,974 19,893 50,431 Opt-Out Firm Re-Certifications 0 2,219 2,210 1,476 Opt-Out Firm Checklist Events 7,271,555 7,241,742 7,212,050 7,241,782 Currently Regulated Firm Checklist

Events 11,412,621 11,365,829 11,319,229 11,365,893 Total 18,806,367 18,631,904 18,555,501 18,664,591October 20, 2009 Page 24 of 38 Exhibit 6.19 Respondent Cost

Year 1 Year 2 Year 3 Average Training Providers $465,625 $92,571 $91,639 $216,612 Opt-Out Firm

Certification $29,323,089 $19,112,164 $19,034,052 $22,489,768 Opt-Out Firm Checklist $12,085,324 $12,035,775 $11,986,428 $12,035,842 Currently Regulated

Checklist $19,757,018 $19,676,014 $19,595,343 $19,676,125 Total $61,631,056 $50,916,523 $50,707,461 $54,418,347

Exhibit 6.20 Agency Cost

Year 1 Year 2 Year 3 Average

EPA $33,440,247 $6,660,375 $6,633,350 $15,577,991

Exhibit 6.21: Respondent Summary, Three-Year Average

Number of Small

Respondents Number of Respondents Responses per Respondent Burden per Response

(hours) Annual

Burden

Training Providers - Existing Respondents, Additional Responses

Pre-notification 157 167 14 0.16 378

Re-notification 157 167 2 0.16 45

Post-notification 157 167 14 1.55 3,661 Digital Photos 157 167 14 1.25 2,953

Renovators – Private Firms – Additional Respondents

Initial Certification 50,296 50,431 1 8.3 418,577

Re-certification 1,472 1,476 1 5.3 7,825

Non-Certification Year 58,904 59,062 1 4.8 283,498 Recordkeeping Checklist Requirements Entities Seeking Certification as a Result of Eliminating the Opt-Out Provision New third party notification requirement for additional renovator respondents

Private Firms 110,672 110,969 65.26 0.05 362,089 Recordkeeping Checklist Requirements Entities Currently Regulated by the 2008 LRRP Rule New third party notification requirement for existing renovator respondents

Private Firms 200,202 203,105 55.65 0.05 565,145

Local Governments 7,138 7,750 8.13 0.05 3,150 Key

Cells highlighted in yellow are incremental increases from previous ICR (EPA No. 1715.10, March 2008). Cells highlighted in blue are revised estimates from previous ICR (EPA No. 1715.10, March 2008). Cells highlighted in pink are new requirement that were not in previous ICR (EPA No. 1715.10, March 2008).



### ⁬ Cells that are not highlighted have not changed from the previous ICR (EPA No. 1715.10, March 2008).

The total burden in OMB’s inventory for the existi ng, approved version of this ICR (EPA ICR No. 1715.10) is 2,157,174 hours. With the addition of the 1,647,321 program change hours related to the rule and 5,258 adjustment hours, the total burden re quested for this ICR will be 3,809,753 hours.

6(e) Reasons For Changes in BurdenOctober 20, 2009 Page 25 of 38 Most of the burden analyzed in this ICR a ddendum relates directly to the amended paperwork requirements contained in the rule and results in a pr ogram change increase. EPA is also correcting some miscalculations presented in the ICR addendum for th e 2008 final RRP rule (ICR #1715.10) that results in adjustment-related increase in burden.

Program Changes

Most of the burden increase analyzed in this ICR is attributable to program changes related to the revisions to the 2008 final RRP rule. These chang es would increase the number of respondents for certain approved information collection activities in some cases, and in other cases increase the number of events for certain approved information collection activities.

Additional Respondents Needing Certification

EPA estimates that an additional 110,969 firms would need to be certified as a result of the elimination of the opt-out provision, and theref ore add a corresponding 110,969 annual responses. Of these 110,969 annual responses, EPA estimates that over th e three years covered by the ICR, there will be an average of 50,431 new initial certification responses , 1,476 re-certification r esponses, and 59,062 noncertification year recordkeeping responses per year. The addition of these new responses is expected to increase the annual certification burden by 418,577 h ours for firms seeking initial certification, 7,825 hours for firms seeking re-certification, and 283,49 8 hours for firms engaged in non-certification year recordkeeping activities

Additional Training Events

In direct relation to the increased number of firms that will be required to be trained and certified, training providers are expected to hold an additional 14 courses per year to accommodate the increase in the number of new respondents seeking RRP certification. Training providers are required to notify EPA before and after course completion, and in some in stances re-notify if course rosters/schedules change. Therefore, EPA has increased the estimated number of pre-course and post-course notifications per firm each by 14, and the number of re-notifications per firm by 2. The annual notification burden for training providers related to these additio nal courses is expected to increase by 378 hours for pre-course notification, 45 hours for re-notifications, and 6,6 14 hours for post-course notification (including digital photographs).

New Third-Party Notification Requirements

EPA estimates that the 3rd-party notification requirements would result in an average burden increase of 930,384 hours per year. Each instance of the required 3rd-party notif ication is estimated to require about 3 minutes of the respondents’ time. However, as indicated in Ex. 6.21, the number of respondents and the estimated number of events per respondent combine to produce a substantial increase

in the overall annual burden estimate.

Adjustments

Digital Photographs

EPA incorrectly accounted for the training provider burden associated with digital photographs of trainees seeking renovation certifications in the final rule ICR addendum (ICR No. 1715.10). In that ICR, EPA estimated that the burden associated with taking a single digital photograph would be 0.05 hours (3 minutes). However, EPA inadvertently utilized th is per-photograph estimate as the full burden estimate for a single course with an assumed training roster of 25 students. The digital photograph burden for aOctober 20, 2009 Page 26 of 38 single course with an assumed roster of 25 students shoul d be 1.25 hours rather than 0.05 hours. This correction results in an adjustment burden incr ease of approximately 5,254 annual burden hours.

Estimated Baseline Number of Firms

In addition, this ICR addendum revises the estimated number of RRP firms upward by a single respondent. Specifically, EPA estimates that there w ill be a single additional respondent engaged in noncertification year record-keeping. Each respondent enga ged in this activity will continue to have only a single annual response. This change is directly relate d to a rounding error and has the impact of adding

about 4 hours to the overall estimated annual burden for this ICR.

6(f) Burden Statement

The incremental public burden for this collecti on of information, which is approved under OMB Control No. 2070-0155, is estimated to average approxi mately 42 hours per year for training providers.

For firms that will seek certification as a result elimina ting the opt-out provision, the average incremental burden is estimated to be about 9.7 hours per year. For firms that are currently regulated under the 2008 LRRP Rule, the average incremental burden is estimated to be about 2.7 hours per year. According to the Paperwork Reduction Act, “ 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. For

this collection it includes the time n eeded to review instructions; de velop, acquire, install and utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and pr oviding 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 in formation. An agency may not conduct or sponsor, and a person is not required to respond to, a collecti on of information unless it displays a currently valid

OMB control number. The OMB control number for this information collection appears above. In addition, the OMB control numbers for EPA’s regulation, after initial display in the final rule, are listed in 40 CFR part 9.October 20, 2009 Page 27 of 38 

### ATTACHMENTS TO THE SUPPORTING STATEMENT

Attachments to the supporting statement for this rule-related ICR addendu m are available in the public docket established for the rulemaking under docket identification number EPA-HQOPPT-2005-0049. These attachments are availa ble for online viewi ng at www.regulations.gov

or otherwise accessed as described in s ection 6(f) of the supporting statement.

Attachment 1 Toxic Substances Control Act (TSCA), S ections 402 and 404 (15 USC 2682, 2684)

Attachment 2 

### Final Rule: Lead; Renovation, Repair, and Painting Program

Attachment 3 Application and Instructions for Training Providers - Applying for Accreditation of Lead-Based Paint Activity Training Programs - EPA Form 8500-25

Attachment 4 Application and Instructions for Firms - A pplying for Certification to Conduct LeadBased Paint Activities - EPA Form 8500-27R

Attachment 5 Sample Form – Lead-Based Paint Activities Training Notification- (Pre-Training)

Attachment 6 Sample Form – Lead-Based Paint Activities Post Training Notification

Attachment 7 Sample Form - Optional Reco rdkeeping Checklist for Firms

Attachment 8 Sample Form – Pre-Renovation FormOctober 20, 2009 Page 28 of 38 EPA ICR No. 1715.11; OMB Control No. 2070-0155



### ATTACHMENT 1

Toxic Substances Control Act Sections 402 and 404
15 U.S.C. 2682, 2684October 20, 2009 Page 29 of 38 Sec. 2682. Lead-based paint activities training and certification

(a) Regulations (1) In general Not later than 18 months after October 28, 1992, th e Administrator shall, in consultation with the Secretary of Labor, the Secretary of Housing and Urban Development, and the Secretary of Health and Human Services ( acting through the Director of the National Institute for Occupational Safety and Health), promulgate final regulations governing lead-based paint activities to ensure that individuals engaged in su ch activities are properly trained; that training programs are accredited; and that contractors engaged in such activities are certified. Such regulations shall contain standards for performi ng lead-based paint activities, taking into account reliability, effectiveness, and safety. Such regul ations shall require that all risk assessment, inspection, and abatement activities performed in target housing shall be performed by certified contractors, as such term is defined in secti on 4851b of title 42. The provisions of this section shall supersede the provisions set forth under the heading ‘’Lead Abatement Training and Certification’‘ and under the heading ‘’Training Gr ants’‘ in title III of the Act entitled ‘’An Act making appropriations for the Departments of Veterans Affairs and Housing and Urban Development, and for sundry independent agen cies, commissions, corporations, and offices for the fiscal year ending September 30, 1992, and for other purposes’‘, Public Law 102-139 (105 Stat. 765, 42 U.S.C. 4822 note), and upon October 28, 1992, the provisions set forth in such public law under such headings shall cease to have any force and effect. (2) Accreditation of training programs Final regulations promulgated under paragraph (1) shall contain specific requirements for the accreditation of lead-based paint activities training programs for workers, supervisors, inspectors and planners, and other individuals involved in lead-based paint activities, including, but not limited to, each of the following: (A) Minimum requirements for the accreditation of training providers. (B) Minimum training curriculum requirements. (C) Minimum training hour requirements. (D) Minimum hands-on training requirements. (E) Minimum trainee competency and proficiency requirements. (F) Minimum requirements for training program quality control. (3) Accreditation and certification fees The Administrator (or the State in the case of an authorized State program) shall impose a fee on - (A) persons operating trai ning programs accredited under this subchapter; and (B) lead-based paint activities contractors certified in accordance with paragraph (1).

The fees shall be established at such level as is n ecessary to cover the costs of administering and enforcing the standards and regulations under this section which are applicable to such programs and contractors. The fee shall not be imposed on any State, local government, or nonprofit training program. The Administrator (or the State in the case of an authorized State program) may waive the fee for lead-based paint activities cont ractors under subparagraph (A) for the purpose of training their own employees.

(b) Lead-based paint activities For purposes of this subchapter, the term ‘’lead-based paint activities’‘ means - (1) in the case of target housing, risk assessment, inspection, and abatement; and (2) in the case of any public building constructe d before 1978, commercial building, bridge, or other structure or superstructure, identification of lead-based paint and materials containing leadbased paint, deleading, removal of lead from bridges, and demolition. For purposes of paragraph (2), the term ‘’deleading’‘ means activities conducte d by a person who offers to eliminate leadbased paint or lead-based paint hazar ds or to plan such activities.

(c) Renovation and remodelingOctober 20, 2009 Page 30 of 38 (1) Guidelines In order to reduce the risk of exposure to lead in connection with renovation and remodeling of target housing, public buildings constructe d before 1978, and commercial buildings, the Administrator shall, within 18 months after October 28, 1992, promulgate guidelines for the

conduct of such renovation and re modeling activities which may create a risk of exposure to dangerous levels of lead. The Administrator sha ll disseminate such guidelines to persons engaged in such renovation and remodeling through hard ware and paint stores, employee organizations, trade groups, State and local agencies, and through other appropriate means. (2) Study of certification The Administrator shall conduct a study of the exte nt to which persons engaged in various types of renovation and remodeling activities in target housing, public buildings constructed before 1978, and commercial buildings are exposed to lead in the conduct of such activities or disturb lead and create a lead-based paint hazard on a regul ar or occasional basis. The Administrator shall complete such study and publish the results ther eof within 30 months after October 28, 1992. (3) Certification determination Within 4 years after October 28, 1992, the Administrator shall revise the regulations under subsection (a) of this section to apply the regul ations to renovation or remodeling activities in target housing, public buildings constructed be fore 1978, and commercial buildings that create lead-based paint hazards. In determining which c ontractors are engaged in such activities, the

Administrator shall utilize the results of the st udy under paragraph (2) and consult with the representatives of labor organizations, lead-based pa int activities contractors, persons engaged in remodeling and renovation, experts in lead hea lth effects, and others. If the Administrator determines that any category of contractors enga ged in renovation or remodeling does not require certification, the Administrator shall publish an expl anation of the basis for that determination.October 20, 2009 Page 31 of 38 

### EPA ICR No. 1715.11; OMB Control No. 2070-0155

ATTACHMENT 2

Final Rule: Lead; Renovation, Repair, and Painting Program

This attachment is available as a document in the electronic docket for this ICR at www.Regulations.gov (EPA-HQ-OPPT-2005-0049).October 20, 2009 Page 32 of 38 

### EPA ICR No. 1715.11; OMB Control No. 2070-0155

ATTACHMENT 3

Application and Instructions for Training Pr oviders- Applying for Accreditation of LeadBased Paint Activity Training Programs - EPA Form 8500-25

For an electronic copy of the Training Provide r Application Form and Instructions, go to http://www.epa.gov/l ead/pubs/trainapp.pdf.October 20, 2009 Page 33 of 38 

### EPA ICR No. 1715.11; OMB Control No. 2070-0155

ATTACHMENT 4

Application and Instructions for Firms- Applyi ng for Certification to Conduct Lead-Based

Paint Activities - EPA Form 8500-27

For an electronic copy of the Firm App lication Form and Instructions, go to http://www.epa.gov/lead/pubs/firmapp.pdf

.October 20, 2009 Page 34 of 38 

### EPA ICR No. 1715.11; OMB Control No. 2070-0155

ATTACHMENT 5

Sample Form - Lead-Based Paint Activiti es Training Notification- (Pre-Training)

For an electronic copy of the Training Notification Sample Form, go to http://www.epa.gov/lead/pubs/form2-pre-training.pdf

.October 20, 2009 Page 35 of 38 

### EPA ICR No. 1715.11; OMB Control No. 2070-0155

ATTACHMENT 6

Sample Form - Lead-Based Paint Acti vities Post Training Notification

For an electronic copy of the Training Notification Sample Form, go to http://www.epa.gov/lead/pubs /form3-post-training.pdf

.October 20, 2009 Page 36 of 38 EPA ICR No. 1715.11; OMB Control No. 2070-0155

ATTACHMENT 7

Optional Recordkeeping Checklist for FirmsOctober 20, 2009 Page 37 of 38 Draft optional Recordkeeping Checklist for Firms: Name of Firm:________________________________________________________________ Date and Location of Renovation:___

______________________________________________ Brief Description of Renovation: _________________________________________________

____________________________________________________________________________ Name of Assigned Renovator:____________________________________________________ Name(s) of Trained Workers, if used:______________________________________________

____________________________________________________________________________ Name of Dust Sampling Technician, Inspector, or Risk Assessor, if used:__________________

_____________________________________________________________________________  Copies of renovator and dust sampling technician qualifications (training certificates, certifications) on file.

 Certified renovator provided training to workers on (check all that apply):

 Posting warning signs  Setting up plastic containment barriers

 Maintaining containment  Avoiding spread of dust to adjacent areas

 Waste handling  Post-renovation cleaning

 Test kits used by certified renovator to de termine whether lead was present on components affected by renovation (identify kits u sed and describe sampling locations and results):_____________________________________________________________

_______________________________________________________________________

_______________________________________________________________________  Warning signs posted at entrance to work area.

 Work area contained to prevent spread of dust and debris

 All objects in the work area removed or covered (interiors)

 HVAC ducts in the work area closed and covered (interiors)

 Windows in the work area closed (interiors)

 Windows in and within 20 feet of the work area closed (exteriors)

 Doors in the work area closed and sealed (interiors)

 Doors in and within 20 feet of the work area closed and sealed (exteriors)

 Doors that must be used in the work area covered to allow passage but prevent spread of

dust

 Floors in the work area covered with taped-down plastic (interiors)

 Ground covered by plastic extending 10 feet from work area—plastic anchored to building and weighted down by heavy objects (exteriors)

 If necessary, vertical containment installed to prevent migration of dust and debris to adjacent property (exteriors)

 Waste contained on-site and wh ile being transported off-site

 Work site properly cleaned after renovation

 All chips and debris picked up, protective sh eeting misted, folded dirty side inward, and taped for removal

 Work area surfaces and objects cleaned using HEPA vacuum and/or wet cloths or mops (interiors)

 Certified renovator performed post-renovation cleaning verification (describe results, including the number of wet and dry cloths used):________________________________

________________________________________________________________________  If dust clearance testing was performed instead, attach a copy of report.

 I certify under penalty of law that the above information is true and complete.

_________________________________________________ ________________________ name and title dateOctober 20, 2009 Page 38 of 38 

### EPA ICR No. 1715.11; OMB Control No. 2070-0155

ATTACHMENT 8

Sample Form – Pre-Renovation Form

For an electronic copy of the Pre-Renovation Sample Form, go to http://www.epa.gov/lead/ pubs/pre-renovationform.pdf