*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

EO12866_Rin2070

‐ AJ20_PesticideCertApp_NPRM_EA AppendixA_FinalRedline_AllRevisions_2015

‐ 08

‐ 04.docx Revised to address Interagency Comments received under EO 12866 Review.



## Certification Rule Economic An alysis Appendix A: Detailed Information on Cost Estimates

This appendix provides details of the cost estimates that are reported in Chapter 3.

Certification Rule Appendix A: Deta iled Information on Cost Estimates ................................................... 1
1 Enhancement of Private Applicator General Competency ............................................................. 8 1.1 Private Applicators ....................................................................................................... ................. 8 1.1.1.1 Private Cert-01: Exam or 8 hour training for core certification ...................................... 11 1.1.1.2 Private Cert-02: Exam or 12 hour training for core certification .................................... 14 1.1.1.3 Private Cert-03: Exam or 16 hour training for core certification .................................... 17 1.1.1.4 Private Cert-01: Develop exam or 8 hour training for core certification ........................ 20 1.1.1.5 Private Cert-02: Develop exam or 12 hour training for core certification ...................... 23 1.1.1.6 Private Cert-03: Develop exam or 16 hour training for core certification ...................... 26
1.1.1.7 Private Cert-01: Administer exam or 8 hour training for core certification .................... 31
1.1.1.8 Private Cert-02: Administer exam or 12 hour training for core certification .................. 34
1.1.1.9 Private Cert-03: Administer exam or 16 hour training for core certification .................. 37
2 Application Method-Specific Categories ........................................................................................ 41
2.1 Commercial Applicators .................................................................................................... ......... 41
2.1.1 Commercial Aerial Applications ........................................................................................ 4 1
2.1.1.1 Comm Cert-01: New Co mmercial Aerial Category ........................................................ 42 2.1.1.2 Comm Cert-01: Develop New Commercial Aerial Category Exam .............................. 49 2.1.1.3 Comm Cert-01: Administer New Commercial Aerial Category Exam ......................... 53 2.1.2 Commercial Chemiga tion Applications .............................................................................. 60
2.1.2.1 Comm Cert-02: New Comme rcial Chemigati on Category ............................................ 61 2.1.2.2 Comm Cert-02: Develop New Commerc ial Chemigation Certification Exam .............. 68
2.1.2.3 Comm Cert-02: Administer New Comm ercial Chemigation Certification Exam ......... 73
2.1.3 Commercial General Fumi gation Applications .................................................................. 79
2.1.3.1 Comm Cert-03: New Commerc ial General Fumigation Category ................................. 80 2.1.3.2 Comm Cert-03: Develop New Commercia l General Fumigation Cer tification Exam .. 87 2.1.3.3 Comm Cert-03: Administer New Commercial General Fumigation Certification Exam 92*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

2.1.4 Commercial Soil Fumigation Category .............................................................................. 99
2.1.5 Commercial Non-Soil Fumigation Category ...................................................................... 99
2.1.5.1 Comm Cert-04: New Commerc ial Non-soil Fumigation Category ............................. 100 2.1.5.2 Comm Cert-04: Develop New Comme rcial Non-Soil Fumigation Certification Exam 108 2.1.5.3 Comm Cert-04: Administer New Commercial Non-soil Fumigation Certification Exam 111 2.2 Private Applicators ....................................................................................................... ............. 118 2.2.1 Private Aerial Applications ............................................................................................. .. 118
2.2.1.1 Private Cert-04: New Private Aerial Certification Category, Exam or 4-hour Training 119 2.2.1.2 Private Cert-04: Develop New Private Aerial Category Exam or 4-hour Training ..... 126
2.2.1.3 Private Cert-04: Administ er New Private Aerial Category Exam or 4-hour Training .. 132
2.2.1.4 Private Cert-05: New Private Aerial Certification Category, Exam or 8-hour Training 138 2.2.1.5 Private Cert-05: Develop New Private Aerial Category Exam or 8-hour training ...... 145
2.2.1.6 Private Cert-05: Administ er New Private Aerial Category Exam or 8-hour Training .. 145 2.2.2 Private Chemigation Applications .................................................................................... 146 2.2.2.1 Private Cert-06: New Private Chemigation Category, Exam or 4-hour Training ........ 147 2.2.2.2 Private Cert-06: Develop New Privat e Chemigation Category Exam or 4-hour Training 153
2.2.2.3 Private Cert-06: Administer New Pr ivate Chemigation Category Exam or 4-hour Training 159 2.2.2.4 Private Cert-07: New Private Chemigation Category, Exam or 8-hour Training ........ 166 2.2.2.5 Private Cert-07: Develop New Privat e Chemigation Category Exam or 8-hour Training 173
2.2.2.6 Private Cert-07: Administer New Pr ivate Chemigation Category Exam or 8-hour Training 173
2.2.3 Private General Fumi gation Applications ......................................................................... 173
2.2.3.1 Private Cert-08: New Private General Fumigation Category, Exam or 4-hour Training 174 2.2.3.2 Private Cert-08: Develop New Private General Fumigation Category Exam or 4-hour Training 179
2.2.3.3 Private Cert-08: Administer New Privat e General fumigation Category Exam or 4-hour Training 185
2.2.3.4 Private Cert-09: New Private Genera l Fumigation Category, Exam or 8-hour Training 191*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

2.2.3.5 Private Cert-09: Develop New Privat e General Fumigation Category Exam or 8-hour Training 196
2.2.3.6 Private Cert-09: Administer New Privat e General fumigation Category Exam or 8-hour Training 197 2.2.4 Private Soil Fumigation Applications ............................................................................... 197
2.2.5 Private Non-Soil Fumi gation Applications ....................................................................... 197
2.2.5.1 Private Cert-10: New Private Non-so il Fumigation Category, Exam or 4-hour Training 198 2.2.5.2 Private Cert-10: Develop New Private Non-soil Fumigation Category Exam or 4-hour Training 206
2.2.5.3 Private Cert-10: Administer New Pr ivate Non-Soil Fumigation Category Exam or 4- hour Training ................................................................................................................. ............... 211
2.2.5.4 Private Cert-11: New Private Non-so il Fumigation Category, Exam or 8-hour Training 218 2.2.5.5 Private Cert-11: Develop New Privat e Non-Soil Fumigation Category Exam or 8-hour Training 225
2.2.5.6 Private Cert-11: Administer New Pr ivate Non-Soil Fumigation Category Exam or 8- hour Training ................................................................................................................. ............... 225
3 Standards for Supervision .............................................................................................................. 226
3.1 Commercial Applicators .................................................................................................... ....... 226 3.1.1 Competency Requirements ............................................................................................... 2 26 3.1.1.1 Comm Sup-01: Non-certified Applicators Complete Training or Pass Core Commercial Certification Exam ............................................................................................................ ............ 226 3.1.1.2 Comm Sup-02: Non-certified Applicators Complete Training or Pass Core Commercial Certification Exam ............................................................................................................ ............ 233 3.1.2 Record-Keeping Requirements ......................................................................................... 245 3.1.2.1 Comm Sup-06: Certified Applicators Main tain Records of UTS Applicator Competency for Two Years ................................................................................................................. .............. 247 3.1.2.2 Comm Sup-07: Certified Applicators Maintain Records of UTS Competency for Five Years 252 3.1.3 Communication Requirements .......................................................................................... 258 3.1.3.1 Comm Sup-04: Non-Certified Applicators must be within line of sight of Commercial Applicator .................................................................................................................... ................. 258 3.1.3.2 Comm Sup-05: Non-Certified Applicators must have method of immediate Communication with Commercial Applicator .............................................................................. 265 3.2 Private Applicators ....................................................................................................... ............. 265 3.2.1 Competency Requirements ............................................................................................... 2 65 3.2.1.1 Private Sup-01: Non-certified Applicators Complete Training, including Handler Training under the Worker Protection Standard ........................................................................... 267*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

3.2.1.2 Private Sup-02: Non-certified Applicators Complete Training, including Handler Training under the Worker Protection Standard or Pass Core Commercial Certification Exam .. 273 3.2.2 Communication Requirements .......................................................................................... 279 3.2.2.1 Private Sup-04: Non-Certified Applicators must be within line of sight of Private Applicator .................................................................................................................... ................. 279 3.2.2.2 Private Sup-05: Non-Certified Applicators must have method of immediate Communication with Certified Private Applicator ....................................................................... 285
4 Minimum Age

.............................................................................................................................. .... 286
4.1 Commercial Applicators .................................................................................................... ....... 286 4.1.1 Certified Applicators ................................................................................................... ...... 286 4.1.1.1 Comm Age-01: Mi nimum Age of 16 ............................................................................ 286 4.1.1.2 Comm Age-02: Mi nimum Age of 18 ............................................................................ 287 4.1.2 Non-certified Applicators ............................................................................................... .. 292 4.1.2.1 Comm Age-03: Mi nimum Age of 16 ............................................................................ 292 4.1.2.2 Comm Age-04: Mi nimum Age of 18 ............................................................................ 292 4.2 Private Applicators ....................................................................................................... ............. 297 4.2.1 Certified Applicators ................................................................................................... ...... 297 4.2.1.1 Private Age-01: Mi nimum Age of 16 ........................................................................... 298 4.2.1.2 Private Age-02: Mi nimum Age of 18 ........................................................................... 305 4.2.1.3 Private Age-03: Minimum Age of 18; Minimum Age of 16 for Family Members ...... 312 4.2.2 Non-certified Applicators ............................................................................................... .. 319 4.2.2.1 Private Age-04: Mi nimum Age of 16 ........................................................................... 320 4.2.2.2 Private Age-05: Mi nimum Age of 18 ........................................................................... 325 4.2.2.3 Private Age-06: Minimum Age of 18; Minimum Age of 16 for Family Members ...... 331
5 Standards for Recertification ......................................................................................................... 337
5.1 Commercial Applicators .................................................................................................... ....... 337 5.1.1 Core and Existing Categories ............................................................................................ 337 5.1.1.1 Comm Recert-01: Exam or 6 hour CEUs/training for core and each category recertification every three years ............................................................................................. ....... 364 5.1.1.2 Comm Recert-01: Administer Exam or 6-hour Training for Commercial Core and Category Recertification: Every 3 Years ...................................................................................... 380 5.1.1.3 Comm Recert-02: Administer Exam for Commercial Core and Category Recertification: Every 3 Years ................................................................................................................. ............... 388 5.1.1.4 Comm Recert-04: Exam or 6 hour CEUs/training for core and each category recertification every five years .............................................................................................. ........ 388 5.1.1.5 Comm Recert-04: Administer Exam or 6-hour Training for Commercial Core and Category Recertification: Every 5 Years ...................................................................................... 394*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5.1.1.6 Comm Recert-05: Exam for core and each category recertification every five years ... 401 5.1.1.7 Comm Recert-05: Administer Exam or 6-hour Training for Commercial Core and Category Recertification: Every 5 Years ...................................................................................... 401 5.1.2 Potential New Categories ................................................................................................ .. 401 5.1.2.1 Comm Cert-01: Establish commercial aerial category, Recertification by Exam or 6 hour CEUs/training every three years ............................................................................................... .... 409 5.1.2.2 Comm Cert-01: Administer New Commercial Aerial Category Exam or Training: Every 3 Years ................................................................................................................. ............... 414 5.1.2.3 Comm Cert-01: Establish commercial aerial category, Recertification by Exam or 6 hour CEUs/training every five years ................................................................................................ ..... 420
5.1.2.4 Comm Cert-01: Administer New Comme rcial Aerial Category: Every 5 Years .......... 425 5.1.2.5 Comm Cert-02: Establish commercial chemigation category, Recertification by Exam or 6 hour CEUs/training every three years ........................................................................................ 434 5.1.2.6 Comm cert-02: Administer New Commercial Chemigation Category Exam or Training: Every 3 Years ................................................................................................................. ............... 439 5.1.2.7 Comm Cert-02: Establish commercial chemigation category, Recertification by Exam or 6 hour CEUs/training every five years ......................................................................................... . 446 5.1.2.8 Comm cert-02: Administer New Commercial Chemigation Category Exam or Training: Every 5 Years ................................................................................................................. ............... 451 5.1.2.9 Comm Cert-03: Establish commercial ge neral fumigation category, Recertification by Exam or 6 hour CEUs/training every three years ......................................................................... 469 5.1.2.10 Comm Cert-03: Administer New Commercial General Fumigation Category Exam or Training: Every 3 Years ....................................................................................................... ......... 475
5.1.2.11 Comm Cert-03: Establish commercial general fumigation category, Recertification by Exam or 6 hour CEUs/training every five years ........................................................................... 480 5.1.2.12 Comm Cert-03: Administer New Commercial General Fumigation Category Exam or Training: Every 5 Years ....................................................................................................... ......... 486
5.1.2.13 Comm Cert-04: Establish commercial fumigation categories for Soil and for Non-soil fumigation, Recertification by Exam or 6 hour CEUs/training every three years ........................ 492
5.1.2.14 Comm Cert-04: Establish commercial fumigation categories for Soil and for Non-soil fumigation, Recertification by Exam or 6 hour CEUs/training every five years .......................... 492 5.2 Private Applicators ....................................................................................................... ............. 493
5.2.1 General Competency ...................................................................................................... ... 493 5.2.1.1 Private Recert-01: Exam or 6 hour CEUs/training for recertification every three years 497 5.2.1.2 Private Recert-01: Administer Exam or 6-hour Training for Private Core Competency Recertification: Every 3 Years ................................................................................................ ...... 503 5.2.1.3 Private Recert-02: Exam or 8 hour CEUs/training for recertification every three years 510*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5.2.1.4 Private Recert-02: Administer Exam or 8-hour Training for Private Core Competency Recertification: Every 3 Years ................................................................................................ ...... 516 5.2.1.5 Private Recert-04: Exam or 6 hour CEUs/training for recertification every five years 516 5.2.1.6 Private Recert-04: Administer Exam or 6-hour Training for Private Core Competency Recertification: Every 5 Years ................................................................................................ ...... 521 5.2.1.7 Private Recert-05: Exam or 8 hour CEUs/training for recertification every five years 528 5.2.1.8 Private Recert-05: Administer Exam or 8-hour Training for Private Core Competency Recertification: Every 5 Years ................................................................................................ ...... 534 5.2.2 Potential New Categories, Private Applicators ................................................................. 534 5.2.2.1 Private Recert-01: Aerial Category Recertification by Exam or 3 hour CEUs/training every three years ............................................................................................................. .............. 535 5.2.2.2 Private Recert-01: Administer Exam or 3-hour Training for Private Aerial Category Recertification: Every 3 Years ................................................................................................ ...... 541 5.2.2.3 Private Recert-02: Aerial Category Recertification by Exam or 4 hour CEUs/training every three years ............................................................................................................. .............. 547 5.2.2.4 Private Recert-02: Administer Exam or 4-hour Training for Private Aerial Category Recertification: Every 3 Years ................................................................................................ ...... 553 5.2.2.5 Private Recert-04: Aerial Category Recertification by Exam or 3 hour CEUs/training every five years .............................................................................................................. ............... 553 5.2.2.6 Private Recert-04: Administer Exam or 3-hour Training for Private Aerial Category Recertification: Every 5 Years ................................................................................................ ...... 559 5.2.2.7 Private Recert-05: Aerial Category Recertification by Exam or 4 hour CEUs/training every five years .............................................................................................................. ............... 565 5.2.2.8 Private Recert-05: Administer Exam or 4-hour Training for Private Aerial Category Recertification: Every 5 Years ................................................................................................ ...... 570 5.2.2.9 Private Recert-01: Chemigation Category Recertification by Exam or 3 hour CEUs/training every three years ............................................................................................... .... 572 5.2.2.10 Private Recert-01: Administer Exam or 3-hour Training for Private Chemigation Category Recertification: Every 3 Years ...................................................................................... 578 5.2.2.11 Private Recert-02: Chemigation Category Recertification by Exam or 4 hour CEUs/training every three years ............................................................................................... .... 584 5.2.2.12 Private Recert-02: Administer Exam or 4-hour Training for Private Chemigation Category Recertification: Every 3 Years ...................................................................................... 589 5.2.2.13 Private Recert-04: Chemigation Category Recertification by Exam or 3 hour CEUs/training every five years ................................................................................................ ..... 589 5.2.2.14 Private Recert-04: Administer Exam or 3-hour Training for Private Chemigation Category Recertification: Every 5 Years ...................................................................................... 595 5.2.2.15 Private Recert-05: Chemigation Category Recertification by Exam or 4 hour CEUs/training every five years ................................................................................................ ..... 601*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5.2.2.16 Private Recert-05: Administer Exam or 4-hour Training for Private Chemigation Category Recertification: Every 5 Years ...................................................................................... 606 5.2.2.17 Private Recert-01: General Fumigati on Category Recertification by Exam or 3 hour CEUs/training every three years ............................................................................................... . 5-612 5.2.2.18 Private Recert-01: Administer Exam or 3-hour Training for Private General Fumigation Category Recertifica tion: Every 3 Years ................................................................ 5-618 5.2.2.19 Private Recert-02: General Fumigati on Category Recertification by Exam or 4 hour CEUs/training every three years ............................................................................................... . 5-623 5.2.2.20 Private Recert-02: Administer Exam or 4-hour Training for Private General Fumigation Category Recertifica tion: Every 3 Years ................................................................ 5-629 5.2.2.21 Private Recert-04: General Fumigati on Category Recertification by Exam or 3 hour CEUs/training every five years ................................................................................................ .. 5-629 5.2.2.22 Private Recert-04: Administer Exam or 3-hour Training for Private General Fumigation Category Recertifica tion: Every 5 Years ................................................................ 5-635 5.2.2.23 Private Recert-05: General Fumigati on Category Recertification by Exam or 4 hour CEUs/training every five years ................................................................................................ .. 5-640 5.2.2.24 Private Recert-05: Administer Exam or 4-hour Training for Private General Fumigation Category Recertifica tion: Every 5 Years ................................................................ 5-646
5.2.2.25 Private Recert-01: Soil and Non-So il Fumigation Category Recertifications by Exam or 3 hour CEUs/training every three years ................................................................................. 5-6 46
5.2.2.26 Private Recert-02: Soil and Non-So il Fumigation Category Recertifications by Exam or 4 hour CEUs/training every three years ................................................................................. 5-6 46
5.2.2.27 Private Recert-04: Soil and Non-So il Fumigation Category Recertifications by Exam or 3 hour CEUs/training every five years .................................................................................. 5-6 47
5.2.2.28 Private Recert-05: Soil and Non-So il Fumigation Category Recertifications by Exam or 4 hour CEUs/training every five years .................................................................................. 5-6 47
6 Requirements for General Administration ................................................................................ 6-649
6.1 Dealer R ecordkeeping ...................................................................................................... ...... 6-649
6.1.1.1 Admin-01: Dealers Maintain Records of Restricted Use Pesticide Sales .................. 6-649
6.2 Administration Costs for Jurisd iction (Admin-02 and -03) ................................................... 6-649 6.2.1.1 Admin-02. Revise Jurisdiction Regulations .............................................................. 6-649 6.2.1.2 Admin-03. Submit State Plans and Report Certified Applicator Data ....................... 6-655 6.3 Federal Administration (A dmin-04 and -06) ......................................................................... 6-660
6.3.1.1 Admin-04. EPA Review of Jurisdiction and Federal Agency Plans & Programs ..... 6-660
6.3.1.2 Admin-06: Revise EPA-Administered Tribal Plans .................................................. 6-666*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***



## 1 Enhancement of Private Applicator General Competency

1.1 Private Applicators

Applicators

The options analyzed here address the requirements for initial certification of private applicators.

Step 1 - Calculate Baseline Costs per First-Time Private Applicator

Most jurisdictions require appli cators to pass a core exam for in itial certification as a private applicator. Five states require training only, of different lengths. Two states require both training and passing the core exam. Three states give options of either passing the core exam, or other training or testing altern atives. Specific cer tification requirements and assumptions are below for like groups an d individual states.

40 States, Puerto Rico, a nd Other Jurisdictions Certification Requirement:

 Must pass core exam for initial cer tification as a private applicator Assumptions:

 Exam and training cover the same scope of material.

 Each exam takes 1 hour to take plus 11 hours of preparation time, or 12 hours total.

Baseline Cost per First-time Private App licator - 40 States, Puerto Rico, and Other Jurisdictions

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Certification 51.96 12 1 623.51

Arkansas Certification Requirement:

 Must take 4 hour training

Baseline Cost per First-time Private Applicator - Arkansas

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Certification 51.96 4 1 207.84

Georgia, Tennessee, Kentucky Certification Requirement:

 Must take 2 hour training*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Baseline Cost per First-time Private App licator - Georgia, Tennessee, Kentucky

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Certification 51.96 2 1 103.92

Mississippi Certification Requirement:

 Must take both 3 hour tr aining and pass core exam Assumption:

 Exam takes 1 hour to take plus 11 ho urs of preparation time, or 12 hours

Baseline Cost per First-time Private Applicator - Mississippi

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) 3 hour training 51.96 3 1 155.88 exam + prep 51.96 12 1 623.51 Total 779.39

Missouri Certification Requirement:

 Must take 3 hour training

Baseline Cost per First-time Private Applicator - Missouri

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Certification 51.96 3 1 155.88

Montana Certification Requirement:

 Options: pass core exam; or, take 6 hour training and ungraded exam Assumptions:

 95% of initial certificati ons are through training with ungraded exam option (Montana estimate)

 5% of initial certifications are through opti on of passing core exam (Montana estimate)

 Training and ungraded exam takes a total of 7 hours (6 hr. training + 1 hr. exam)

 Exam option takes 1 hour to take plus 11 hours of preparation time, or 12 hours

Baseline Cost per First-time Private Applicator - Montana

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Certification – training 51.96 6 0.95 296.17*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Certification – ungraded exam 51.96 1 0.95 49.36 Certification – pass core exam 51.96 12 0.05 31.18 Total 376.70

New York Certification Requirement:

 Must take both 30 hour tr aining and pass core exam Assumption:

 Each exam takes 1 hour to take plus 11 hours of preparation time, or 12 hours

Baseline Cost per First-time Private Applicator - New York

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Certification –training 51.96 30 1 1,558.78 Certification – exam 51.96 12 1 623.51 Total 2,182.29

South Dakota Certification Requirement:

 Options: pass core exam; or, take internet test; or, 3 hour training Assumptions:

 Internet test is comparable to core exam (standards and time)

 76% of initial certifications are by training option ( Sout h Dakota estimate)

 24% of initial certifications are by core exam or internet test ( 12% each; South Dakota estimate)

 Core exam and internet test options take 1 hour to take plus 11 hours of preparation time, or 12 hours

Baseline Cost per First-time Private Applicator - South Dakota

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Certification – training 51.96 3 0.76 118.47 Certification – core exam or internet test 51.96 12 0.24 149.64

Total 268.11

Wyoming Certification Requirement:

 Options: pass core exam; or, take 6 hour training; or, 2 hour take-home workbook Assumptions:

 95% of initial certifications are by training option (Wyoming estimate)

 5% of initial certifications are by ta ke-home workbook option (Wyoming estimate)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 0% of initial certifications are by exam option (Wyoming estimate)

 Core exam option takes 1 hour to take pl us 7 hours of preparation time, or 8 hours

Baseline Cost per First-time Private Applicator - Wyoming

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Certification – training 51.96 6 0.95 296.17 Certification – workbook 51.96 2 0.05 5.20 Certification – core exam 51.96 8 0 0 Total 301.36

1.1.1.1 Private Cert-01: Exam or 8 hour training for core certification

Step 2 - Calculate Costs per First-Time Private Applicator of Potential Requirement

Certification requirement:

 Pass exam, or take 8 hour training Assumptions:

 Same content covered by exam and training

 Exam assumed to take 1 hour + 7 hours of preparation, for a total of 8 hours

Table: Private Cert-01; Applicators; Step 2; Cost of Potential Requirement per Fi rst-time Private Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Certification 51.96 8 1 415.67

Step 3 – Estimate Jurisdiction Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per first-time private applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per first-time private appl icator, presented in St ep 2. To avoid the appearance of cost-savings, the cost in juri sdictions whose requirements meet or exceed the option are set equal the baseline cost, i.e. , EPA assumes those states will not alter their existing requirements.

 The number of first-time private applicators (N 1st Pvt ) per year in each jurisdiction is obtained from the CPARD database (see Chapter 3, Section 3.3)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for initial certification of private applicat ors in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for initial certificati on of private applicators unde r the potential requirement.

Given the above: RC B = cost r,i, a B x N 1st Pvt RC P = cost r,i, a P x N 1st Pvt
Values are presented in the table below.

Table: Private Cert-01; Applicators; Step 3; Total Annual Jurisdictional Baseline a nd Potential Requirement Costs for Initial Certification of Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N 1st Pvt RC B ($) RC P ($) 40 states & PR 624 624 21,895 13,651,818 13,651,818 GA, TN, KY 104 416 4,645 482,684 1,930,737 Missouri 156 416 1,628 253,821 676,856 Arkansas 208 416 1,485 308,603 617,207 Mississippi 779 779 1,344 1,047,369 1,047,369 New York 2,182 2,182 246 536,843 536,843 Montana 377 416 258 97,190 107,244 Wyoming 301 416 388 116,854 161,178 South Dakota 218 416 2,151 576,570 893,907 Total, U.S. 34,039 17,071,752 19,623,158

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

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௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of certification would remain constant thereafter. The PV of costs under the proposal, at a 3% discount rate, is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, we assume no factor is changi ng over time. The number of first-time private applicators each year in the U.S. is remaining constant.

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Cert-01; Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) 40 states & PR 119,946 119,946 0 GA, TN, KY 14,110 4,241 9,869 Missouri 5,113 2,230 2,883 Arkansas 4,815 2,711 2,103 Mississippi 9,202 9,202 0 New York 4,717 4,717 0 Montana 922 854 69 Wyoming 1,329 1,027 302 South Dakota 7,229 5,066 2,163

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Cert-01; Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 167,383 149,994 17,388 U.S. (annualized value) 19,051 17,072 1,979 Per applicator incremental cost 0.058

1.1.1.2 Private Cert-02: Exam or 12 hour training for core certification

Step 2 - Calculate Costs per First-Time Private Applicator of Potential Requirement Certification requirement:

 Pass exam, or take 12 hour training Assumptions:

 Same content covered by exam and training

 Exam assumed to take 1 hour + 11 hours of preparation, for a total of 12 hours

Table: Private Cert-02; Applicators; Step 2; Cost of Potential Requirement per Fi rst-time Private Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Certification 51.96 12 1 623.51

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per first-time private applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per first-time private appl icator, presented in St ep 2. To avoid the appearance of cost-savings, the cost in juri sdictions whose requirements meet or exceed the option are set equal the baseline cost, i.e. , EPA assumes those states will not alter their existing requirements.

 The number of first-time private applicators (N 1st Pvt ) per year in each jurisdiction is obtained from the CPARD database (see Chapter 3, Section 3.3)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for initial certification of private applicat ors in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for initial certificati on of private applicators unde r the potential requirement.

Given the above: RC B = cost r,i, a B x N 1st Pvt RC P = cost r,i, a P x N 1st Pvt
Values are presented in the table below.

Table: Private Cert-02; Applicators; Step 3; Total Annual Jurisdictional Baseli ne and Potential Requirement Costs for Initial Certification of Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N 1st Pvt RC B ($) RC P ($) 40 states & PR 624 624 21,895 13,651,818 13,651,818 GA, TN, KY 104 416 4,645 482,684 2,896,105 Missouri 156 416 1,628 253,821 1,015,284 Arkansas 208 416 1,485 308,603 925,810 Mississippi 779 779 1,344 1,047,369 1,047,369 New York 2,182 2,182 246 536,843 536,843 Montana 377 416 258 97,190 160,866 Wyoming 301 416 388 116,854 241,766 South Dakota 218 416 2,151 576,570 1,340,861 Total, U.S. 34,039 17,071,752 21,816,722

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of certification would remain constant th ereafter. The PV of costs under the proposal, at a 3% discount rate, is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, we assume no factor is changi ng over time. The number of first-time private applicators each year in the U.S. is remaining constant.

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Cert-02; Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) 40 states & PR 119,946 119,946 0 GA, TN, KY 20,689 4,241 16,448 Missouri 7,420 2,230 5,190 Arkansas 6,918 2,711 4,206 Mississippi 9,202 9,202 0 New York 4,717 4,717 0 Montana 1,288 854 434 Wyoming 1,878 1,027 851 South Dakota 10,275 5,066 5,209

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Cert-02; Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 182,332 149,994 32,338 U.S. (annualized value) 20,752 17,072 3,681 Per applicator incremental cost 0.108

1.1.1.3 Private Cert-03: Exam or 16 hour training for core certification

Step 2 - Calculate Costs per First-Time Private Applicator of Potential Requirement Certification requirement:

 Pass exam, or take 16 hour training Assumptions:

 Same content covered by exam and training

 Exam assumed to take 1 hour + 15 hours of preparation, for a total of 16 hours

Table: Private Cert-03; Applicators; Step 2; Cost of Potential Requirement per Fi rst-time Private Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Certification 51.96 16 1 831.35

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per first-time private applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per first-time private appl icator, presented in St ep 2. To avoid the appearance of cost-savings, the cost in juri sdictions whose requirements meet or exceed the option are set equal the baseline cost, i.e. , EPA assumes those states will not alter their existing requirements.

 The number of first-time private applicators (N 1st Pvt ) per year in each jurisdiction is obtained from the CPARD database (see Chapter 3, Section 3.3)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for initial certification of private applicat ors in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for initial certificati on of private applicators unde r the potential requirement.

Given the above: RC B = cost r,i, a B x N 1st Pvt RC P = cost r,i, a B x N 1st Pvt
Values are presented in the table below.

Table: Private Cert-03; Applicators; Step 3; Total Annual Jurisdictional Baseli ne and Potential Requirement Costs for Initial Certification of Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N 1st Pvt RC B ($) RC P ($) 40 states & PR 624 831 21,895 13,651,818 18,202,424 GA, TN, KY 104 831 4,645 482,684 3,861,474 Missouri 156 831 1,628 253,821 1,353,712 Arkansas 208 831 1,485 308,603 1,234,413 Mississippi 779 831 1,344 1,047,369 1,117,193 New York 2,182 2,182 246 536,843 536,843 Montana 377 831 258 97,190 214,488 Wyoming 301 831 388 116,854 322,355 South Dakota 218 831 2,151 576,570 1,787,814 Total, U.S. 34,039 17,071,752 28,630,716

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of certification would remain constant th ereafter. The PV of costs under the proposal, at a 3% discount rate, is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, we assume no factor is changi ng over time. The number of first-time private applicators each year in the U.S. is remaining constant.

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Cert-03; Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) 40 states & PR 150,960 119,946 31,013 GA, TN, KY 27,268 4,241 23,027 Missouri 9,726 2,230 7,496 Arkansas 9,021 2,711 6,310 Mississippi 9,678 9,202 476 New York 4,717 4,717 0 Montana 1,653 854 799 Wyoming 2,427 1,027 1,401 South Dakota 13,321 5,066 8,255

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 3% discount rate used for PV and annualized value

Table: Private Cert-03; Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 228,771 149,994 78,777 U.S. (annualized value) 26,038 17,072 8,966 Per applicator incremental cost 0.263

State Costs, Developing/Adapti ng Training and Exam Material

The options analyzed here address the requirement s for initial certification of private applicators as they apply to the development/adaptat ion of state training and exam material.

Step 1 - Calculate Baseline Costs

Most states (40) and Puerto Rico require applicators to pass a core exam for initial certification as a private applicator. Five st ates require training onl y, of different lengths. Two states require both training and passing the core exam. Three st ates give options of either passing the core exam, or other training or testing alternatives.

In the baseline, all jurisdictions have exams and/ or training material prepared and would bear no costs for developing or adapting the material.

1.1.1.4 Private Cert-01: Develop exam or 8 ho ur training for core certification

Step 2 - Calculate Costs per First-Time Private Applicator of Potential Requirement

Assumptions:

 Jurisdictions requiring private applicators to pass a core exam will not have to adapt the exam to meet revisions to content

 Eight jurisdictions requiring trai ning or offering training as an alternative would have to expand the training material to meet revisions to content

 The opportunity cost of the responsible staff is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

 Revising the training material, given the availability of ma terials from EPA, takes 80 hours of staff time, on average, across the eight jurisdictions

 States will have two years to revise materials*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Cert-01; Jurisdictions; Step 2; Cost of Potential Requirement per Ju risdiction that certifies by training

Action Wage ($/hour) Time (hours) Frequency Cost ($) Adapt training material 39.44 80 0.50 1,577.60

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per jurisdiction ( cost r,i, a B ) is presented in Step 1

 The cost per jurisdiction of the potential requirement ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the total annual jurisd ictional cost multiplied by the number of jurisdictions.

 The regional cost of the potential requirement (RC P ) is the total annual jurisdictional cost multiplied by the number of jurisdictions.

Given the above: RC B = cost r,i, a B x N Jur RC P = cost r,i, a P x N Jur
Values are presented in the table below.

Table: Private Cert-02; Jurisdictions; Step 3; Total Annual Baseline and Potential Requirement Costs for Initial Certification of Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Jur RC B ($) RC P ($) 44 jurisdictions 0 0 44 0 0 Arkansas 0 1,578 1 0 1,578 GA, TN, KY 0 1,578 3 0 4,733 Missouri 0 1,578 1 0 1,578 Montana 0 1,578 1 0 1,578 South Dakota 0 1,578 1 0 1,578 Wyoming 0 1,578 1 0 1,578 Total, U.S. 52 0 12,621

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions and exam and/or training materials in line with the proposed require ments. There would be no further costs. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ௉ ௧ୀଵ ∙ 1.97

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Cert-01; Jurisdictions; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) 44 jurisdictions 0 0 0 Arkansas 3.1 0 3.1 GA, TN, KY 9.3 0 9.3 Missouri 3.1 0 3.1 Montana 3.1 0 3.1 South Dakota 3.1 0 3.1 Wyoming 3.1 0 3.1

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Cert-01; Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 25 0 25 U.S. (annualized value) 3 0 3

1.1.1.5 Private Cert-02: Develop exam or 12 hour training for core certification

Step 2 - Calculate Costs per First-Time Private Applicator of Potential Requirement

Assumptions:

 Jurisdictions requiring private applicators to pass a core exam will not have to adapt the exam to meet revisions to content

 Eight jurisdictions requiring trai ning or offering training as an alternative would have to expand the training material to meet revisions to content

 The opportunity cost of the responsible staff is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

 Revising the training material, given the availability of ma terials from EPA, takes 100 hours of staff time, on average, across the eight jurisdictions

 States will have two years to revise materials

Table: Private Cert-02; Jurisdictions; Step 2; Cost of Potential Requirement per Ju risdiction that certifies by training

Action Wage ($/hour) Time (hours) Frequency Cost ($) Adapt training material 39.44 100 0.50 1,972.00

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per jurisdiction ( cost r,i, a B ) is presented in Step 1*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The cost per jurisdiction of the potential requirement ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the total annual jurisd ictional cost multiplied by the number of jurisdictions.

 The regional cost of the potential requirement (RC P ) is the total annual jurisdictional cost multiplied by the number of jurisdictions.

Given the above: RC B = cost r,i, a B x N Jur RC P = cost r,i, a P x N Jur
Values are presented in the table below.

Table: Private Cert-02; Jurisdictions; Step 3; Total Annual Baseline and Potential Requirement Costs for Initial Certification of Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Jur RC B ($) RC P ($) 44 jurisdictions 0 0 44 0 0 Arkansas 0 1,972 1 0 1,972 GA, TN, KY 0 1,972 3 0 5,916 Missouri 0 1,972 1 0 1,972 Montana 0 1,972 1 0 1,972 South Dakota 0 1,972 1 0 1,972 Wyoming 0 1,972 1 0 1,972 Total, U.S. 52 0 15,776

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions and exam and/or training materials in line with the proposed require ments. There would be no further costs. The PV of costs under the proposal, at a 3% discount rate, is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ௉ ௧ୀଵ ∙ 1.97

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Cert-02; Jurisdictions; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) 44 jurisdictions 0 0 0 Arkansas 3.9 0 3.9 GA, TN, KY 11.7 0 11.7 Missouri 3.9 0 3.9 Montana 3.9 0 3.9 South Dakota 3.9 0 3.9 Wyoming 3.9 0 3.9

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Cert-02; Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 31 0 31 U.S. (annualized value) 4 0 4

1.1.1.6 Private Cert-03: Develop exam or 16 hour training for core certification

Step 2 - Calculate Costs per First-Time Private Applicator of Potential Requirement

Assumptions:

 Jurisdictions requiring private applicators to pass a core ex am would have to adapt the exam to meet revisions to content

 Eight jurisdictions requiring trai ning or offering training as an alternative would have to expand the training material to meet revisions to content

 The opportunity cost of the responsible staff is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

 Revising the exam material, given the availabi lity of materials from WPS, takes 80 hours of staff time, on average, across the 44 jurisdictions

 Revising the training material, given the availability of ma terials from EPA, takes 120 hours of staff time, on average, across the eight jurisdictions

 States will have two years to revise materials

Table: Private Cert-03; Jurisdictions; Step 2; Cost of Potential Requirement per Jurisdiction that certifies by exam

Action Wage ($/hour) Time (hours) Frequency Cost ($) Adapt training material 39.44 80 0.50 1,577.60

Table: Private Cert-03; Jurisdictions; Step 2; Cost of Potential Requirement per Ju risdiction that certifies by training

Action Wage ($/hour) Time (hours) Frequency Cost ($) Adapt training material 39.44 120 0.50 2,366.40

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The baseline cost per jurisdiction ( cost r,i, a B ) is presented in Step 1

 The cost per jurisdiction of the potential requirement ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the total annual jurisd ictional cost multiplied by the number of jurisdictions.

 The regional cost of the potential requirement (RC P ) is the total annual jurisdictional cost multiplied by the number of jurisdictions.

Given the above: RC B = cost r,i, a B x N Jur RC P = cost r,i, a P x N Jur
Values are presented in the table below.

Table: Private Cert-03; Jurisdictions; Step 3; Total Annual Baseline and Potential Requirement Costs for Initial Certification of Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Jur RC B ($) RC P ($) 44 jurisdictions 0 1,578 44 0 69,414 Arkansas 0 2,366 1 0 2,366 GA, TN, KY 0 2,366 3 0 7,099 Missouri 0 2,366 1 0 2,366 Montana 0 2,366 1 0 2,366 South Dakota 0 2,366 1 0 2,366 Wyoming 0 2,366 1 0 2,366 Total, U.S. 52 0 18,931

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions and exam and/or training materials in line with the proposed require ments. There would be no further costs. The PV of costs under the proposal, at a 3% discount rate, is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ௉ ௧ୀଵ ∙ 1.97

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Cert-03; Jurisdictions; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) 44 jurisdictions 137 0 137 Arkansas 4.7 0 4.7 GA, TN, KY 14.0 0 14.0 Missouri 4.7 0 4.7 Montana 4.7 0 4.7 South Dakota 4.7 0 4.7 Wyoming 4.7 0 4.7

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Cert-03; Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 174 0 174 U.S. (annualized value) 20 0 20

State Costs, Administration of Priv ate Certification Exam/Trainings

The options analyzed here address the requirement s for initial certification of private applicators as they apply to the administ ration of trainings and exams.

Step 1 - Calculate Baseline Costs

Most jurisdictions require appli cators to pass a core exam for in itial certification as a private applicator. Five states require training only, of different lengths. Two states require both training and passing the core exam. Three states give options of either passing the core exam, or other training or te sting alternatives.

The opportunity cost of the responsible sta ff is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5.

38 States, Puerto Rico, a nd Other Jurisdictions Information and Assumptions:

 Applicators take an exam to obtain certification

 The exam takes one hour to administer and a staff person is present to proctor the exam

 Frequency of the action, per private applicator, is 0.02 hour s (1/50 hours) assuming that, on average, the exam is administered to 50 applicators

 As a simplification, Mississippi and New York are included in this group of jurisdictions although they require training in addition to the exam. Baseline costs are thus underestimated, but since the option would not affect the administration of the training, estimates of the incremental cost will not be affected.

Baseline Cost per First-time Private App licator - 38 States, Puerto Rico, and Other Jurisdictions

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Administer exam 39.44 1 0.02 0.79

Colorado, Minnesota, Oklahoma, and West Virginia Information and Assumptions:

 Applicators take an exam to obtain certification

 The exam is not proctored, implying zero baseline costs for these states*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Arkansas Assumptions:

 Applicators take a 4-hour trai ning and a staff person is pres ent to provide the training

 Frequency of the action, per private applicator, is 0.02 hour s (1/50 hours) assuming that, on average, the training is administered to 50 applicators

Baseline Cost per First-time Private Applicator - Arkansas

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Provide training 39.44 4 0.02 3.16

Georgia, Tennessee, Kentucky Assumptions:

 Applicators take a 2-hour trai ning and a staff person is pres ent to provide the training

 Frequency of the action, per private applicator, is 0.02 hour s (1/50 hours) assuming that, on average, the training is administered to 50 applicators

Baseline Cost per First-time Private App licator - Georgia, Tennessee, Kentucky

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Provide training 39.44 2 0.02 1.58

Missouri and South Dakota Assumptions:

 Applicators take a 3-hour trai ning and a staff person is pres ent to provide the training

 Frequency of the action, per private applicator, is 0.02 hour s (1/50 hours) assuming that, on average, the training is administered to 50 applicators

Baseline Cost per First-time Private A pplicator - Missouri and South Dakota

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Provide training 39.44 3 0.02 2.37

Montana and Wyoming Assumptions:

 Applicators take a 6-hour trai ning and a staff person is pres ent to provide the training

 Frequency of the action, per private applicator, is 0.02 hour s (1/50 hours) assuming that, on average, the training is administered to 50 applicators*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Baseline Cost per First-time Privat e Applicator - Montana and Wyoming

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Provide training 39.44 6 0.02 4.73

1.1.1.7 Private Cert-01: Administer exam or 8 hour training for core certification

Step 2 - Calculate Costs per First-Time Private Applicator of Potential Requirement

Assumptions:

 Jurisdictions requiring private applicators to pass a core exam will continue to do so

 Eight jurisdictions providing training will co ntinue to do so, but expand the content, necessitating more time

 The opportunity cost of the responsible staff is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

 Applicators take a 8-hour trai ning and a staff person is pres ent to provide the training

 Frequency of the action, per private applicator, is 0.02 hour s (1/50 hours) assuming that, on average, the training is administered to 50 applicators

Table: Private Cert-01; Jurisdictions; Step 2; Cost of Potential Requirement per First-time Private Applicator - 42 States, Puerto Rico, and Other Jurisdictions

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Administer exam 39.44 1 0.02 0.79

Table: Private Cert-01; Jurisdictions; Step 2; Cost of Potential Requirement per First-time Private Applicator in Jurisdiction that certifies by training

Action Wage ($/hour) Time (hours) Frequency Cost ($) Provide training 39.44 8 0.02 6.31

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per jurisdiction ( cost r,i, a B ) is presented in Step 1

 The cost per jurisdiction of the potential requirement ( cost r,i, a P ) is presented in Step 2.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The baseline regional cost (RC B ) is the baseline cost per jurisdiction multiplied by the number of first-time private applicators (N 1st Pvt )

 The regional cost of the potential requirement (RC P ) is the cost per jurisdiction of the potential requirement multiplied by the number of first-time private applicators (N 1st Pvt )

Given the above: RC B = cost r,i, a B x N 1st Pvt RC P = cost r,i, a P x N 1st Pvt
Values are presented in the table below.

Table: Private Cert-02; Jurisdictions; Step 3; Total Annual Baseline and Potential Requirement Costs for Initial Certification of Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N 1st Pvt RC B ($) RC P ($) 40 jurisdictions 0.79 0.79 20,782 16,392 16,392 Arkansas 3.16 6.31 1,485 4,685 9,370 Colorado 0.00 0.79 393 0 310 Georgia 1.58 6.31 1,669 2,633 10,531 Kentucky 1.58 6.31 2,572 4,057 16,228 Minnesota 0.00 0.79 669 0 528 Missouri 2.37 6.31 1,628 3,853 10,275 Montana 4.73 6.31 258 1,221 1,628 Oklahoma 0.00 0.79 1,563 0 1,233 Tennessee 1.58 6.31 404 638 2,552 South Dakota 2.37 6.31 2,151 5,089 13,571 West Virginia 0.00 0.79 79 0 62 Wyoming 4.73 6.31 388 1,835 2,447 Total, U.S. 34,039 40,404 85,126

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The administration costs w ould remain constant th ereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Cert-01; Jurisdictions; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) 40 jurisdictions 144 144 0 Arkansas 73 41 32 Colorado 9 0 9 Georgia 77 23 54 Kentucky 119 36 83 Minnesota 4 0 4 Missouri 78 34 44 Montana 14 11 3 Oklahoma 8 0 8 Tennessee 19 6 13 South Dakota 103 45 58 West Virginia 3 0 3 Wyoming 20 16 4

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Cert-01; Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 660 355 305 U.S. (annualized value) 75 40 35

1.1.1.8 Private Cert-02: Administer exam or 12 hour training for core certification

Step 2 - Calculate Costs per First-Time Private Applicator of Potential Requirement

Assumptions:

 Jurisdictions requiring private applicators to pass a core exam will continue to do so

 Eight jurisdictions providing training will co ntinue to do so, but expand the content, necessitating more time

 The opportunity cost of the responsible staff is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

 Applicators take a 12-hour trai ning and a staff person is pres ent to provide the training

 Frequency of the action, per private applicator, is 0.02 hour s (1/50 hours) assuming that, on average, the training is administered to 50 applicators

Table: Private Cert-02; Jurisdictions; Step 2; Cost of Potential Requirement per First-time Private Applicator - 42 States, Puerto Rico, and Other Jurisdictions

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Administer exam 39.44 1 0.02 0.79*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Cert-02; Jurisdictions; Step 2; Cost of Potential Requirement per First-time Private Applicator in Jurisdiction that certifies by training

Action Wage ($/hour) Time (hours) Frequency Cost ($) Provide training 39.44 12 0.02 9.47

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per jurisdiction ( cost r,i, a B ) is presented in Step 1

 The cost per jurisdiction of the potential requirement ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the baseline cost per jurisdiction multiplied by the number of first-time private applicators (N 1st Pvt )

 The regional cost of the potential requirement (RC P ) is the cost per jurisdiction of the potential requirement multiplied by the number of first-time private applicators (N 1st Pvt )

Given the above: RC B = cost r,i, a B x N 1st Pvt RC P = cost r,i, a P x N 1st Pvt
Values are presented in the table below.

Table: Private Cert-02; Jurisdictions; Step 3; Total Annual Baseline and Potential Requirement Costs for Initial Certification of Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N 1st Pvt RC B ($) RC P ($) 40 jurisdictions 0.79 0.79 20,782 16,392 16,392 Arkansas 3.16 9.47 1,485 4,685 14,055 Colorado 0.00 0.79 393 0 310 Georgia 1.58 9.47 1,669 2,633 15,797 Kentucky 1.58 9.47 2,572 4,057 24,342 Minnesota 0.00 0.79 669 0 528 Missouri 2.37 9.47 1,628 3,853 15,413 Montana 4.73 9.47 258 1,221 2,422 Oklahoma 0.00 0.79 1,563 0 1,233 Tennessee 1.58 9.47 404 638 3,827 South Dakota 2.37 9.47 2,151 5,089 20,356 West Virginia 0.00 0.79 79 0 62 Wyoming 4.73 9.47 388 1,835 3,670*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Total, U.S. 34,039 40,404 118,427

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The administration costs w ould remain constant th ereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Cert-02; Jurisdictions; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) 40 jurisdictions 144 144 0 Arkansas 105 41 64 Colorado 9 0 9 Georgia 113 23 90 Kentucky 174 36 138 Minnesota 4 0 4*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Missouri 113 34 79 Montana 19 11 8 Oklahoma 8 0 8 Tennessee 27 6 22 South Dakota 149 45 104 West Virginia 3 0 3 Wyoming 29 16 13

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Cert-02; Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 887 355 532 U.S. (annualized value) 101 40 61

1.1.1.9 Private Cert-03: Administer exam or 16 hour training for core certification

Step 2 - Calculate Costs per First-Time Private Applicator of Potential Requirement

Assumptions:

 Jurisdictions requiring private applicators to pass a core exam will continue to do so

 Eight jurisdictions providing training will co ntinue to do so, but expand the content, necessitating more time

 The opportunity cost of the responsible staff is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

 Applicators take a 16-hour trai ning and a staff person is pres ent to provide the training*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Frequency of the action, per private applicator, is 0.02 hour s (1/50 hours) assuming that, on average, the training is administered to 50 applicators

Table: Private Cert-03; Jurisdictions; Step 2; Cost of Potential Requirement per First-time Private Applicator - 42 States, Puerto Rico, and Other Jurisdictions

Action Wage ($/hour) Time (hours) Frequency / probability (per new private, per year) Cost ($) Administer exam 39.44 1 0.02 0.79

Table: Private Cert-01; Jurisdictions; Step 2; Cost of Potential Requirement per First-time Private Applicator in Jurisdiction that certifies by training

Action Wage ($/hour) Time (hours) Frequency Cost ($) Provide training 39.44 16 0.02 12.62

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per jurisdiction ( cost r,i, a B ) is presented in Step 1

 The cost per jurisdiction of the potential requirement ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the baseline cost per jurisdiction multiplied by the number of first-time private applicators (N 1st Pvt )

 The regional cost of the potential requirement (RC P ) is the cost per jurisdiction of the potential requirement multiplied by the number of first-time private applicators (N 1st Pvt )

Given the above: RC B = cost r,i, a B x N 1st Pvt RC P = cost r,i, a P x N 1st Pvt
Values are presented in the table below.

Table: Private Cert-03; Jurisdictions; Step 3; Total Annual Baseline and Potential Requirement Costs for Initial Certification of Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N 1st Pvt RC B ($) RC P ($) 40 jurisdictions 0.79 0.79 20,782 16,392 16,392 Arkansas 3.16 12.62 1,485 4,685 18,740 Colorado 0.00 0.79 393 0 310*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Georgia 1.58 12.62 1,669 2,633 21,062 Kentucky 1.58 12.62 2,572 4,057 32,456 Minnesota 0.00 0.79 669 0 528 Missouri 2.37 12.62 1,628 3,853 20,551 Montana 4.73 12.62 258 1,221 3,256 Oklahoma 0.00 0.79 1,563 0 1,233 Tennessee 1.58 12.62 404 638 5,103 South Dakota 2.37 12.62 2,151 5,089 27,141 West Virginia 0.00 0.79 79 0 62 Wyoming 4.73 12.62 388 1,835 4,894 Total, U.S. 34,039 40,404 151,728

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The administration costs w ould remain constant th ereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Cert-03; Jurisdictions; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) 40 jurisdictions 144 144 0 Arkansas 105 41 64 Colorado 9 0 9 Georgia 149 23 126 Kentucky 229 36 194 Minnesota 4 0 4 Missouri 148 34 114 Montana 25 11 14 Oklahoma 8 0 8 Tennessee 36 6 30 South Dakota 195 45 150 West Virginia 3 0 3 Wyoming 37 16 21

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Cert-03; Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 1,114 355 759 U.S. (annualized value) 127 40 86*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***



## 2 Application Method- Specific Categories

The potential requirements would establish addi tional, concurrent cert ification categories for certain application methods using restricted use pesticides. Options address the elevated risks associated with these application methods.



### 2.1 Commercial Applicators

2.1.1 Commercial Aerial Applications

Step 1 - Calculate Baseline Costs per Commercial Applicator for Initial Aerial Category Certification
Although there is currently no federa l aerial certification category, most states (32) require aerial category certification in order for commercial app licators to apply RUPs aerially. These states require commercial applicators to pass an aeria l category exam for initia l certification in the category. We assume that the standards for thes e exams, as well as the time and cost necessary to prepare for and take the exams, is equivalent to that of the proposed standards for the new aerial category, that is, the exam takes 1 hour to take plus 7 hours of preparation time, or 8 hours total.

Baseline Cost per Commercial Applicator for In itial Certification in Aerial Category; 32 States Currently Requiring A erial Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) Aerial category certification requirement 21.49 8 1 171.92

The remaining 18 states, Puerto Rico, and “Other ,” do not require or o ffer an aerial category certification for commercial appl icators. Although some comme rcial applicators apply RUPs aerially in these jurisdictions, the baseline cost is zero.

18 States, Puerto Rico, and “Other” Currently With No Aerial Category Certification Requirement
Aerial Category Certification Requirement:

 None Assumption:

 Some commercial applicators in jurisdictions without an ae rial category already apply RUPs aerially, without cost for an aerial category certification.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm Cert-01; Step 1; Commercial Applicators; Baseline Cost per Commercial Applicator for In itial Certification in Aerial Category; 18 States, Puerto Rico, and Ot her Currently Not Requiring A erial Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no aerial category certification requirement 21.49 0 1 0

2.1.1.1 Comm Cert-01: New Commercial Aerial Category

Step 2 - Calculate Costs of Potential Requirement per Commercial Applicator Certifying in Aerial Category
In jurisdictions currently without an aerial ce rtification category, ther e are some commercial applicators who apply RUPs aeriall y (and legally). Of these, some have been applying RUPs aerially for more than a year. Though not certifie d in the aerial category, we will refer to these as “existing aerial applicators.” Also in thos e jurisdictions, each year some commercial applicators start applying RUPs aerially for the fi rst time, referred to here as “first-time aerial applicators.”
Since initial certification only occurs once, in the 32 states that re quire aerial category certification, those applicators already certified in the aerial category are not applicable to this potential requirement. They are certified aeria l applicators, not “existing aerial applicators.” However, in these 32 states with the aerial cate gory, there are commercial applicators that seek certification in the aerial category for the first time in a given year. They are considered here as an additional group of “first -time aerial applicators.”
Aerial category certification potential requirement:

 Commercial applicators must pass aerial category exam Definitions:

 Existing aerial applicators: Commercial ap plicators who have been applying RUPs aerially for more than one year, in jurisdic tions that do not require certification in an aerial category.

 First-time aerial applicators:

o Commercial applicators who begin applying RUPs aerially for the first time in a given year, in jurisdictions that do not requ ire certification in an aerial category; and

o Commercial applicators who s eek certification in the aerial category for the first time in a given year, in states that curr ently require certification in the aerial category. Assumptions:

 Those taking the aerial category exam are already commercial applicators, so have certification in at least one non- application-specific category.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 For first-time aerial applicators, the exam take s 1 hour to take plus 7 hours of preparation time, or 8 hours total.

 For existing aerial applicators, the exam takes 1 hour to take plus 5 hours of preparation time, or 6 hours total. Existi ng aerial applicators are assumed to take less time to prepare since they have already acquired knowledge and experience in aerial application.

 The wage rate for commercial applicat ors is $21.49 [insert source and year]

Table: Comm Cert-01; Commercial Applicator s; Step 2; Cost of Potential Requirement per Commercial Applicator Initially Certifying in Aerial Category

Action Wage ($) Time (hours) Frequency Cost ($) First-time aerial applicator Prepare and take aerial category exam 21.49 8 1 172

Existing aerial applicator Prepare and take aerial category exam 21.49 6 1 129

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per commercial applicator initially certifying in the aerial category ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost-savings, the baseline cost in jurisdictions whose requirements m eet or exceed the option are constrained to equal the cost of the option.

 The cost per first-time aerial applicator of the potential requirement ( cost r,i,1st P ) is the cost under the potential requirement per commercial a pplicator initially cert ifying in the aerial category, in jurisdictions both with and without a current ae rial certification category, presented in Step 2.

 The cost per existing aerial applic ator of the potential requirement ( cost r,i,Xst P ) is the cost under the potential requirement per existing aerial applicator, in jurisdictions not currently requiring commercial cer tification in an aerial category.

 N 1st = number of “first time aeria l applicators.” As defined under Step 2, this applies to both:

o Commercial applicators who begin applying RUPs aerially for the first time in a given year, in jurisdictions that do not requ ire certification in an aerial category; and

o Commercial applicators who s eek certification in the aerial category for the first time in a given year, in states that curr ently require certification in the aerial category.

 N Xst = number of existing aerial applicators. This applies only to existing aerial applicators, as defined unde r Step 2, for jurisdictions not currently requiring commercial certification in an aerial category.

 There are no data on the number of existing or first-time aeria l applicators in regions that do not currently require aerial category certification. EPA has estimated the number of existing and first-time aerial applicators in th ese regions, using data on aerial applicator*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

certifications in the 32 states that certify in the category, as well as other data correlations among commercial applicators in those states. See Chapter 3.3.1

 In the 32 states with a commercial aerial certification category, st ate data on the number of commercial applicators who are certified in the aerial cate gory for the first time each year, are obtained from the CPARD da tabase (see Chapter 3, Section 3.3)

 The baseline regional cost (RC B ) is the current total annua l regional cost for initial certification of commer cial applicators in the aerial category.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for commercial applicators, of certification in the aerial category under the potential requirement.

 Existing aerial applicators, in jurisdicti ons not currently requ iring aerial category certification, would all become certified in the aerial category one time only, in year three, when the rule would e ssentially become effective.

 The same number of first-time aerial applic ators would become certified in the aerial category annually, starting in year three. This applies to first-time aerial applicators both in jurisdictions not currently requiring aerial category certification, as well as in the 32 states that do.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Comm Cert-01; Commercial Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Certification of Commercial Applicators in Aerial Category

Region cost r,i, a B ($) cost r,i,1st P

($) cost r,i,Xst P

($) N 1st N Xst RC B RC t=3 P RC t>3 P ($) ($) ($) Alabama 0 172 129 2 20 0 2,992 413 Alaska 172 172 0 1 5 107 107 107 Arizona 0 172 129 8 71 0 10,589 1,461 Arkansas 0 172 129 32 264 0 39,552 5,455 California 172 172 0 54 448 9,240 9,240 9,240 Colorado 0 172 129 24 199 0 29,736 4,102 Connecticut 172 172 0 0 2 41 41 41 Delaware 0 172 129 5 41 0 6,136 846 Florida 172 172 0 38 318 6,554 6,554 6,554 Georgia 172 172 0 34 285 5,880 5,880 5,880 Hawaii 172 172 0 1 8 168 168 168 Idaho 0 172 129 26 216 0 32,313 4,457 Illinois 172 172 0 33 271 5,588 5,588 5,588*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Indiana 172 172 0 32 267 5,502 5,502 5,502 Iowa 172 172 0 90 749 15,443 15,443 15,443 Kansas 0 172 129 40 337 0 50,429 6,956 Kentucky 172 172 0 8 71 1,455 1,455 1,455 Louisiana 172 172 0 46 381 7,868 7,868 7,868 Maine 172 172 0 3 27 560 560 560 Maryland 172 172 0 6 46 949 949 949 Massachusetts 172 172 0 2 16 327 327 327 Michigan 172 172 0 10 80 1,654 1,654 1,654 Minnesota 172 172 0 46 383 7,892 7,892 7,892 Mississippi 172 172 0 29 238 4,914 4,914 4,914 Missouri 0 172 129 28 237 0 35,447 4,889 Montana 172 172 0 2 13 265 265 265 Nebraska 172 172 0 63 525 10,821 10,821 10,821 Nevada 0 172 129 10 80 0 11,931 1,646 New Hampshire 172 172 0 2 15 317 317 317 New Jersey 172 172 0 10 81 1,671 1,671 1,671 New Mexico 0 172 129 1 6 0 891 123 New York 172 172 0 6 50 1,038 1,038 1,038 North Carolina 0 172 129 20 170 0 25,361 3,498 North Dakota 172 172 0 43 357 7,355 7,355 7,355 Ohio 172 172 0 11 92 1,895 1,895 1,895 Oklahoma 0 172 129 49 408 0 61,018 8,416 Oregon 0 172 129 25 210 0 31,381 4,328 Pennsylvania 172 172 0 8 71 1,458 1,458 1,458 Rhode Island 0 172 129 2 15 0 2,203 304 South Carolina 172 172 0 10 85 1,761 1,761 1,761 South Dakota 0 172 129 47 389 0 58,155 8,021 Tennessee 0 172 129 10 86 0 12,865 1,774 Texas 172 172 0 64 533 10,997 10,997 10,997 Utah 172 172 0 6 48 987 987 987 Vermont 172 172 0 1 8 168 168 168 Virginia 172 172 0 10 84 1,730 1,730 1,730 Washington 0 172 129 55 459 0 68,705 9,477 West Virginia 0 172 129 4 31 0 4,654 642 Wisconsin 172 172 0 8 68 1,393 1,393 1,393 Wyoming 172 172 0 5 43 887 887 887 Puerto Rico 0 172 129 6 46 0 6,907 953 Other 0 172 129 0 0 0 0 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Total, U.S. 1,07 4 8,95 0 116,88 3 608,14 8

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing commercial aerial applic ators in states that newly impose the commercial aerial category must become certifie d, along with all new commercial aerial applicators. In subsequent years, the additiona l cost of aerial certification is borne only by new commercial appl icators; costs would remain cons tant thereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-time aer ial applicators in the regions is assumed to be constant over time, existing aerial applicat ors in jurisdictions without a category will only need to obtain certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm Cert-01; Commercia l Applicators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) 32 States Alabama 5 0 5 Arizona 19 0 19 Arkansas 69 0 69 Colorado 52 0 52 Delaware 11 0 11 Idaho 57 0 57 Kansas 88 0 88 Missouri 62 0 62 Nevada 21 0 21 New Mexico 2 0 2 North Carolina 44 0 44 Oklahoma 107 0 107 Oregon 55 0 55 Rhode Island 4 0 4 South Dakota 102 0 102 Tennessee 23 0 23 Washington 120 0 120 West Virginia 8 0 8 Puerto Rico 12 0 12 Other 0 0 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Per aerial applicator increm ental cost = NIC (U.S., annua lized value) ÷ (sum of N 1st time + N Exist for all regions)

 3% discount rate used for PV and annualized value*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm Cert-01; Commercial Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 1,888 1,027 861 U.S. (annualized value) 215 117 98 Per aerial applicator incremental cost 0.022

State Costs, Developing/Adapti ng Training and Exam Material

The options analyzed here address the requirement s for certification of commercial applicators in new categories as they apply to the development/a daptation of state trai ning and exam material.

Step 1 - Calculate Baseline Costs

Although there are currently no federal commercial applicator certification categories based on application method, some states do require certification in one or more of the application method-specific categories among those considered in the potential requir ements below. For commercial certification categories considered as potential requirements (aerial, chemigation, fumigation (general, or separate soil and non-soil fumigation), th ere are different jurisdictions that currently require each. Jurisdictions that do not require a partic ular category have zero baseline cost for that category. Jurisdictions that require a given category in the baseline are assumed to be in compliance.

Jurisdictions that Require Certificatio n in Aerial Category in the Baseline

Assumptions:

 These jurisdictions are in compliance with a given category requirement, and already have exams and/or trai ning materials developed

 It takes a Jr. Technician 100 hours to adapt an existing aerial category exam suitable for their jurisdiction

 EPA assumes all jurisdicti ons will develop exams

 Development of materials is done once, w ith labor and cost spread over two years

 The wage rate for a Junior Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Comm Cert-01; Step 1; Jurisdictions; Baseline Cost per Jurisdiction to Develop Co mmercial Aerial Category Certification Exam; Jurisdictions Currently Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) Develop category exam 39.44 100 0.50 1,972 Total 1,972*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Jurisdictions that do Not Require Certificat ion in a Given Category in the Baseline

Jurisdictions that do not require a particular category have zero ba seline cost for that category.

Table: Commercial Cert-01 throug h -04; Step 1; Jurisdictions; Baseline Cost per Jurisdiction to Develo p Commercial Category Certification Exam; Jurisdictions Currently Not Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no category certification requirement 39.44 0 0 0.00

Total 0.00

2.1.1.2 Comm Cert-01: Develop New Comm ercial Aerial Category Exam

Step 2 - Calculate Costs per Jurisdiction of Potential Requirement

Currently, 32 states require aerial category cer tification in order for commercial applicators to apply RUPs aerially. These stat es require commercial applicator s to pass an aerial category exam for initial certification in the category. Th ey already have the exam, so incur no cost to develop it due to Comm Cert-01.

The remaining 18 states, Puerto Rico, and Ot her do not offer or require aerial category certification for commercial appl icators, so must bear the fu ll cost of developing exams as incremental cost under the potential requirement.

Jurisdictional action necessary to implement potential requirement:

 Develop category-specific exam or training ma terial within two year s of promulgation of final rule Assumptions:

 All jurisdictions not already in compliance will develop exams

 Since there is an aerial category exam ava ilable, it will take less than 250 hours to develop it, which is the cost if it is developed from scratch. The jurisdictions that do not have the aerial category in th e baseline can adapt the curren tly available exam to their own purpose, which EPA assumes will take 100 hours.

 The opportunity cost of the responsible staff is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

 Development of materials is done once, with labor and cost spread over first two years*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm Cert-01; St ep 2; Jurisdictions; Cost per Jurisdiction to Develop Material s to Implement Potential Requirement; Develop Aerial Category Exam

Action Wage ($/hour) Time (hours) Frequency Cost ($) Develop category exam 39.44 100 0.50 1,972 Total 1,972

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per jurisdiction for developing the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements meet or exceed the option are constrained to e qual the cost of the option.

 The cost per jurisdiction of developing the exam for implementation of the potential requirement ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional cost of developing the exam

 The regional cost of the potential requirement (RC P ) is the total annual jurisdictional cost of developing the exam

 Each jurisdiction would develop one exam for the aerial category, in the first two years following promulgation of the final rule, i.e., cost r,i, a P = RC P for each jurisdiction

 N Jur is the number of jurisdictions

Given the above: RC B = cost r,i, a B x N Jur RC P = cost r,i, a P x N Jur
Values are presented in the table below.

Table: Comm Cert-01; Jurisdictions; Step 3; Total Annual Baseline and Potential Requireme nt Costs for Developing Aerial Category Exam for Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P

($) N Jur RC B ($) RC P ($) 32 states with aerial category and exam 0 0 32 0 0

Alabama 0 1,972 1 0 1,972 Arizona 0 1,972 1 0 1,972 Arkansas 0 1,972 1 0 1,972 Colorado 0 1,972 1 0 1,972 Delaware 0 1,972 1 0 1,972*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Idaho 0 1,972 1 0 1,972 Kansas 0 1,972 1 0 1,972 Missouri 0 1,972 1 0 1,972 Nevada 0 1,972 1 0 1,972 New Mexico 0 1,972 1 0 1,972 North Carolina 0 1,972 1 0 1,972 Oklahoma 0 1,972 1 0 1,972 Oregon 0 1,972 1 0 1,972 Rhode Island 0 1,972 1 0 1,972 South Dakota 0 1,972 1 0 1,972 Tennessee 0 1,972 1 0 1,972 Washington 0 1,972 1 0 1,972 West Virginia 0 1,972 1 0 1,972 Puerto Rico 0 1,972 1 0 1,972 Other 0 1,972 1 0 1,972 Total, U.S. 52 0 39,440

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions and develop exam and/or training materials in lin e with the proposed requirements. There would be no further costs. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ௉ ௧ୀଵ ∙ 1.97

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Regional Baseline Cost*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 PV IC = Present Value of the Incremental Cost

 PV IC = PV RC P
– PV RC B

Table: Comm Cert-01; Juri sdictions; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1000) PV RC B ($1000) PV IC ($1000) 32 states with aerial category and exam 0 0 0

Alabama 4 0 4 Arizona 4 0 4 Arkansas 4 0 4 Colorado 4 0 4 Delaware 4 0 4 Idaho 4 0 4 Kansas 4 0 4 Missouri 4 0 4 Nevada 4 0 4 New Mexico 4 0 4 North Carolina 4 0 4 Oklahoma 4 0 4 Oregon 4 0 4 Rhode Island 4 0 4 South Dakota 4 0 4 Tennessee 4 0 4 Washington 4 0 4 West Virginia 4 0 4 Puerto Rico 4 0 4 Other 4 0 4

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm Cert-01; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 78 0 78 U.S. (annualized value) 9 0 9

State Costs, Administering Ce rtification Exam for Applica tion Method-Specific Categories

The options analyzed in this section address th e requirements for certificat ion of applicators in the application method-specific categories as they apply to the administration or proctoring of certification exam.

Commercial Applicator
Although there are currently no federal commercial applicator certification categories based on application method, some states do require certification in one or more of the application method-specific categories among those considered in the potential requir ements below. For commercial certification categories considered as potential requirements (aerial, chemigation, general fumigation, soil fumigation, and non-soil fu migation), there are di fferent jurisdictions that currently require each. Jurisdictions that do not require a partic ular category have zero baseline cost for that category. Jurisdictions that require a given category in the baseline are assumed to be in compliance, and have the state costs of exam administra tion that are equal to that of the proposed requirement.
For commercial applicators, the jurisdictions th at have one or more of the application methodspecific categories require certific ation by passing a wr itten exam. The proposed rule also requires certification in these cate gories by passing a written exam.

EPA assumes that certification by ex am takes one hour of a state official’s (assumed to be a Jr. Technician) time to proctor a gr oup of 50 examinees in a room.

2.1.1.3 Comm Cert-01: Administer New Commercial Aerial Category Exam

Step 1 - Calculate Baseline Costs

Jurisdictions that Require Certificatio n in Aerial Category in the Baseline

Thirty two (32) states require aerial certification in the baselin e. However, of these states, Florida and South Carolina do not proctor their certification exam and thus there is no proctoring cost for these two states in the baseline.

Assumptions:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Currently, these states are in compliance w ith Comm Cert-01, proc toring the certification exam in the baseline

 It takes a Jr. Technician 1 hour to proctor a group of 50 examinees

 Proctoring of certification exam is done every year for the 10-year horizon for the first time applicators

 The wage rate for a Junior Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Comm Cert-01; Step 1; Baseline Cost per Applicator to Proctor Comm ercial Aerial Category Certification Exam; 32 States Currently Requiring A erial Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) Proctor category exam 39.44 1 0.02 0.79 Total 0.79

Jurisdictions that do Not Require Certific ation in Aerial Category in the Baseline

The 18 states (AL, AZ, AR, CO, DE, ID, KS, MO, NV, NM, NC, OK, OR , RI, SD, TN, WA, & WV), Puerto Rico, and Other do not require aerial certification in the baseline.

Table: Comm Cert-01; Step 1; Baseline Cost per Applicator to Proctor Comm ercial Aerial Category Certification Exam; Jurisdictions Currently Not Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no category certification requirement 39.44 0 0 0.00

Total 0.00

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Comm Cert-01; Step 2; Cost per Applicator to Proctor Commerc ial Aerial Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($) Proctor category exam 39.44 1 0.02 0.79 Total 0.79*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N 1st = number of “first time aerial app licators.” This applies to both:

o Commercial applicators who begin applying RUPs aerially for the first time in a given year, in jurisdictions that do not requ ire certification in an aerial category; and

o Commercial applicators who s eek certification in the aerial category for the first time in a given year, in states that curr ently require certification in the aerial category.

 N Xst = number of existing aerial applicators. This applies only to existing aerial applicators for jurisdictions not currently re quiring commercial certific ation in an aerial category.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Comm Cert-01; Step 3; Total Annual Baseline and Potential Requireme nt Costs for Proctoring Aerial Category Exam for Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i,1st P ($) cost r,i,Xst P ($) N 1st N Xst RC B ($) RC t=3 P ($) RC t>3 P ($)

Alabama 0 0.79 0.79 2 20 0.0 17.7 1.9 Alaska 0.79 0.79 0 1 5 0.5 0.5 0.5 Arizona 0 0.79 0.79 8 71 0.0 62.5 6.7 Arkansas 0 0.79 0.79 32 264 0.0 233.6 25.0 California 0.79 0.79 0 54 448 42.4 42.4 42.4 Colorado 0 0.79 0.79 24 199 0.0 175.6 18.8 Connecticut 0.79 0.79 0 0 2 0.2 0.2 0.2*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Delaware 0 0.79 0.79 5 41 0.0 36.2 3.9 Florida 0.79 0.79 0 38 318 0.0 30.1 30.1 Georgia 0.79 0.79 0 34 285 27.0 27.0 27.0 Hawaii 0.79 0.79 0 1 8 0.8 0.8 0.8 Idaho 0 0.79 0.79 26 216 0.0 190.8 20.4 Illinois 0.79 0.79 0 33 271 25.6 25.6 25.6 Indiana 0.79 0.79 0 32 267 25.2 25.2 25.2
Iowa 0.79 0.79 0 90 749 70.9 70.9 70.9
Kansas 0 0.79 0.79 40 337 0.0 297.8 31.9 Kentucky 0.79 0.79 0 8 71 6.7 6.7 6.7 Louisiana 0.79 0.79 0 46 381 36.1 36.1 36.1 Maine 0.79 0.79 0 3 27 2.6 2.6 2.6 Maryland 0.79 0.79 0 6 46 4.4 4.4 4.4 Massachusetts 0.79 0.79 0 2 16 1.5 1.5 1.5 Michigan 0.79 0.79 0 10 80 7.6 7.6 7.6 Minnesota 0.79 0.79 0 46 383 36.2 36.2 36.2 Mississippi 0.79 0.79 0 29 238 22.5 22.5 22.5 Missouri 0 0.79 0.79 28 237 0.0 209.4 22.4
Montana 0.79 0.79 0 2 13 1.2 1.2 1.2 Nebraska 0.79 0.79 0 63 525 49.6 49.6 49.6 Nevada 0 0.79 0.79 10 80 0.0 70.5 7.6 New Hampshire 0.79 0.79 0 2 15 1.5 1.5 1.5 New Jersey 0.79 0.79 0 10 81 7.7 7.7 7.7 New Mexico 0 0.79 0.79 1 6 0.0 5.3 0.6 New York 0.79 0.79 0 6 50 4.8 4.8 4.8 North Carolina 0 0.79 0.79 20 170 0.0 149.8 16.0 North Dakota 0.79 0.79 0 43 357 33.7 33.7 33.7 Ohio 0.79 0.79 0 11 92 8.7 8.7 8.7 Oklahoma 0 0.79 0.79 49 408 0.0 360.4 38.6 Oregon 0 0.79 0.79 25 210 0.0 185.3 19.9 Pennsylvania 0.79 0.79 0 8 71 6.7 6.7 6.7 Rhode Island 0 0.79 0.79 2 15 0.0 13.0 1.4 South Carolina 0.79 0.79 0 10 85 0.0 8.1 8.1 South Dakota 0 0.79 0.79 47 389 0.0 343.5 36.8
Tennessee 0 0.79 0.79 10 86 0.0 76.0 8.1
Texas 0.79 0.79 0 64 533 50.5 50.5 50.5 Utah 0.79 0.79 0 6 48 4.5 4.5 4.5*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Vermont 0.79 0.79 0 1 8 0.8 0.8 0.8 Virginia 0.79 0.79 0 10 84 7.9 7.9 7.9 Washington 0 0.79 0.79 55 459 0.0 405.8 43.5 West Virginia 0 0.79 0.79 4 31 0.0 27.5 2.9 Wisconsin 0.79 0.79 0 8 68 6.4 6.4 6.4 Wyoming 0.79 0.79 0 5 43 4.1 4.1 4.1 Puerto Rico 0 0.79 0.79 6 46 0.0 40.8 4.4 Other 0 0.79 0.79 0 0 0.0 0.0 0.0 Total, U.S. 1,074 8,950 498 3,438

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing commercial aerial applic ators in states that newly impose the commercial aerial category must become certified, along with all new commercial aerial applicators. In subsequent years, the additiona l cost of aerial certification is borne only by new commercial appl icators; costs would remain cons tant thereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 In this case, while the number of first-time aer ial applicators in the regions is assumed to be constant over time, existing aerial applicat ors in jurisdictions without a category will only need to obtain certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Cert-0 1; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000)

Alabama 0.03 0.00 0.03 Alaska 0.00 0.00 0.00 Arizona 0.10 0.00 0.10 Arkansas 0.37 0.00 0.37 California 0.37 0.37 0.00 Colorado 0.28 0.00 0.28 Connecticut 0.00 0.00 0.00 Delaware 0.06 0.00 0.06 Florida 0.20 0.00 0.20 Georgia 0.24 0.24 0.00 Hawaii 0.01 0.01 0.00 Idaho 0.30 0.00 0.30 Illinois 0.23 0.23 0.00 Indiana 0.22 0.22 0.00 Iowa 0.62 0.62 0.00 Kansas 0.47 0.00 0.47 Kentucky 0.06 0.06 0.00 Louisiana 0.32 0.32 0.00 Maine 0.02 0.02 0.00 Maryland 0.04 0.04 0.00 Massachusetts 0.01 0.01 0.00 Michigan 0.07 0.07 0.00 Minnesota 0.32 0.32 0.00 Mississippi 0.20 0.20 0.00 Missouri 0.33 0.00 0.33 Montana 0.01 0.01 0.00 Nebraska 0.44 0.44 0.00*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Nevada 0.11 0.00 0.11 New Hampshire 0.01 0.01 0.00 New Jersey 0.07 0.07 0.00 New Mexico 0.01 0.00 0.01 New York 0.04 0.04 0.00 North Carolina 0.24 0.00 0.24 North Dakota 0.30 0.30 0.00 Ohio 0.08 0.08 0.00 Oklahoma 0.57 0.00 0.57 Oregon 0.29 0.00 0.29 Pennsylvania 0.06 0.06 0.00 Rhode Island 0.02 0.00 0.02 South Carolina 0.06 0.00 0.06 South Dakota 0.54 0.00 0.54 Tennessee 0.12 0.00 0.12 Texas 0.44 0.44 0.00 Utah 0.04 0.04 0.00 Vermont 0.01 0.01 0.00 Virginia 0.07 0.07 0.00 Washington 0.64 0.00 0.64 West Virginia 0.04 0.00 0.04 Wisconsin 0.06 0.06 0.00 Wyoming 0.04 0.04 0.00 Puerto Rico 0.06 0.00 0.06 Other 0.00 0.00 0.00

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm Cert-01; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 945 U.S. (annualized value) 1.0 0.5 0.5

2.1.2 Commercial Chemigation Applications

Step 1 - Calculate Baseline Costs per Commercial Applicator for Initial Chemigation Category Certification
Although there is currently no fede ral chemigation certification categ ory, seven (7) states require chemigation category certification in order for commercial applicators to apply RUPs by chemigation. These states require commercial ap plicators to pass a chemigation category exam for initial certification in the category. We assume that the standards for these exams, as well as the time and cost necessary to prepare for and take the exams, is equivalent to that of the standards of the potential requirement for the new chemigation category, that is, the exam takes 1 hour to take plus 7 hours of prep aration time, or 8 hours total.

Baseline Cost per Commercial Applicator fo r Initial Certification in Chemigation Category; 7 States Currently Requiring Chemigation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) Chemigation category certification requirement 21.49 8 1 171.92

The remaining 43 states, Puerto Rico, and “Oth er,” do not require or offer a chemigation category certification for commercial applicators. Although some commerci al applicators apply RUPs by chemigation in these jurisdic tions, the baseline cost is zero.

43 States, Puerto Rico, and “Other” Cu rrently With No Chemigation Category Certification Requirement
Chemigation Category Certification Requirement:

 None Assumption:

 Some commercial applicators in jurisdictions without a chemigation category already apply RUPs by chemigation, without cost for a chemigation cat egory certification.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm Cert-02; Step 1; Commercial Applicators; Baseline Cost per Commercial Applicator fo r Initial Certification in Chemigation Category; 43 States, Puerto Rico, and Other Currentl y Not Requiring Chemigation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no chemigation category certification requirement 21.49 0 1 0

2.1.2.1 Comm Cert-02: New Commercial Chemigation Category

Step 2 - Calculate Costs of Potential Requirement per Commercial Applicator Certifying in Chemigation Category
In jurisdictions currently without a chemig ation certification category, there are some commercial applicators who apply RUPs by chemigation (and legally). Of these, some have been applying RUPs by chemigation for more than a year. Though not certified in the chemigation category, we will refer to these as “exi sting chemigation applicators.” Also in those jurisdictions, each year some commercial applic ators start applying RUPs by chemigation for the first time, referred to here as “f irst-time chemigation applicators.”
Since initial certification only occurs once, in the 7 states that requi re chemigation category certification, those applicators already certified in the chemigation category are not applicable to this potential requirement. They are certified chemigation applicators, not “existing chemigation applicators.” However, in these 7 states with the chemigation category, there are commercial applicators that seek certificati on in the chemigation category for the first time in a given year. They are considered here as an additional group of “first-time chem igation applicators.”
Chemigation category certificat ion potential requirement:

 Commercial applicators must pass chemigation category exam Definitions:

 Existing chemigation applicat ors: Commercial applicat ors who have been applying RUPs by chemigation for more than one y ear, in jurisdictions that do not require certification in a chemigation category.

 First-time chemigation applicators:

o Commercial applicators who begin appl ying RUPs by chemigation for the first time in a given year, in jurisdictions that do not require certification in a chemigation category; and

o Commercial applicators who seek certification in the chemigation category for the first time in a given year, in states th at currently require certification in the chemigation category.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Assumptions:

 Those taking the chemigation category exam are already commercial applicators, so have certification in at least one non- application-specific category.

 For first-time chemigation applicators, the exam takes 1 hour to take plus 7 hours of preparation time, or 8 hours total.

 For existing chemigation applic ators, the exam takes 1 hour to take plus 5 hours of preparation time, or 6 hours total. Existing chemigation applicators are assumed to take less time to prepare since they have al ready acquired knowledge and experience in chemigation application.

 The wage rate for commercial applicat ors is $21.49 [insert source and year]

Table: Comm Cert-02; Commercial Applicator s; Step 2; Cost of Potential Requirement per Commercial Applicator Initially Certifying in Chemigation Category

Action Wage ($) Time (hours) Frequency Cost ($) First-time chemigation applicator Prepare and take chemigation category

exam 21.49 8 1 172

Existing chemigation applicator Prepare and take chemigation category

exam 21.49 6 1 129

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per commercial applicator initially certifying in the chemigation category ( cost r,i, a B ) is presented in Step 1. To avoi d the appearance of cost-savings, the baseline cost in jurisdictions whose re quirements meet or exceed the option are constrained to equal the cost of the option.

 The cost per first-time chemigation applicator of the potential requirement ( cost r,i,1st P ) is the cost under the potential re quirement per commercial appli cator initially certifying in the chemigation category, in jurisdictions bot h with and without a current chemigation certification category, presented in Step 2.

 The cost per existing chemigation applic ator of the potenti al requirement ( cost r,i,Xst P ) is the cost under the potentia l requirement per existing ch emigation applicator, in jurisdictions not currently requiring commercial certification in a chemigation category.

 N 1st = number of “first time chemigation app licators.” As defined under Step 2, this applies to both:

o Commercial applicators who begin appl ying RUPs by chemigation for the first time in a given year, in jurisdictions that do not require certification in a chemigation category; and

o Commercial applicators who seek certification in the chemigation category for the first time in a given year, in states th at currently require certification in the chemigation category.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 N Xst = number of existing chemigation appli cators. This applies only to existing chemigation applicators, as defined under St ep 2, for jurisdictions not currently requiring commercial certification in a chemigation category.

 There are no data on the numb er of existing or first-time chemigation applicators in regions that do not currently require chemigation categor y certification. EPA has estimated the number of existing and first-time chemigation applicators in these regions, using data on chemigation applicator certifications in the 7 states that certify in the category, as well as other data correlations am ong commercial applicators in those states. See Chapter 3.3.1

 In the 7 states with a commercial chemiga tion certification categor y, state data on the number of commercial applicators who are ce rtified in the chemigation category for the first time each year, are obtained from the CPARD database (see Chapter 3, Section 3.3)

 The baseline regional cost (RC B ) is the current total annua l regional cost for initial certification of commerci al applicators in the chemigation category.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for commercial applicators, of certification in the chemigation categor y under the potential requirement.

 Existing chemigation applicators, in jurisd ictions not currently requiring chemigation category certification, would all become certif ied in the chemigation category one time only, in year three, when the rule would essentially become effective.

 The same number of first-time chemigation applicators would become certified in the chemigation category annually, starting in y ear three. This applies to first-time chemigation applicators both in jurisdic tions not currently requiring chemigation category certification, as well as in the 7 states that do.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Comm Cert-02; Commercial Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Certification of Commercial Applicators in Chemigation Category

Region cost r,i, a B ($) cost r,i,1st P ($) cost r,i,Xst P ($) N 1st N Xst RC B RC t=3 P RC t>3 P ($) ($) ($) Alabama 0 172 129 2 21 0 3,023 258
Alaska 0 172 129 n/a 1 n/a 0 0 0 Arizona 0 172 129 1 9 0 1,329 113 Arkansas 0 172 129 1 17 0 2,460 210 California 0 172 129 4 57 0 8,102 692 Colorado 0 172 129 1 15 0 2,079 177*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Connecticut 0 172 129 n/a n/a 0 0 0 Delaware 0 172 129 2 22 0 3,061 261 Florida 0 172 129 2 30 0 4,198 358 Georgia 0 172 129 2 31 0 4,374 373 Hawaii 172 172 n/a 0.4 6 76 76 76 Idaho 0 172 129 2 29 0 4,054 346 Illinois 0 172 129 0 6 0 857 73 Indiana 0 172 129 0 6 0 798 68 Iowa 0 172 129 1 19 0 2,613 223 Kansas 0 172 129 1 8 0 1,165 99 Kentucky 0 172 129 1 10 0 1,346 115 Louisiana 0 172 129 1 12 0 1,729 148 Maine 172 172 n/a 0 0 0 0 0 Maryland 0 172 129 1 20 0 2,802 239 Massachusetts 0 172 129 1 8 0 1,169 100 Michigan 0 172 129 1 9 0 1,279 109 Minnesota 0 172 129 0 4 0 542 46 Mississippi 0 172 129 1 18 0 2,505 214 Missouri 0 172 129 1 7 0 1,047 89 Montana 0 172 129 1 10 0 1,434 122 Nebraska 0 172 129 0 6 0 861 74 Nevada 172 172 n/a 1 8 94 94 94 New Hampshire 0 172 129 n/a n/a 0 0 0 New Jersey 0 172 129 2 22 0 3,052 261 New Mexico 0 172 129 1 12 0 1,663 142 New York 0 172 129 1 12 0 1,733 148 North Carolina 0 172 129 2 33 0 4,604 393 North Dakota 0 172 129 1 15 0 2,178 186 Ohio 0 172 129 1 17 0 2,418 206 Oklahoma 0 172 129 2 31 0 4,328 369 Oregon 0 172 129 2 24 0 3,319 283 Pennsylvania 0 172 129 1 10 0 1,375 117 Rhode Island 0 172 129 n/a n/a 0 0 0 South Carolina 0 172 129 2 22 0 3,131 267 South Dakota 0 172 129 1 13 0 1,782 152 Tennessee 0 172 129 2 24 0 3,388 289 Texas 172 172 n/a 2 28 333 333 333*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Utah 0 172 129 1 12 0 1,696 145 Vermont 0 172 129 n/a n/a 0 0 0 Virginia 172 172 n/a 3 37 447 447 447 Washington 0 172 129 5 71 0 10,023 856 West Virginia 0 172 129 1 9 0 1,211 103 Wisconsin 172 172 n/a 0.3 4 48 48 48 Wyoming 172 172 n/a 2 21 355 355 355 Puerto Rico 0 172 129 0.3 5 0 646 55 Other 0 172 129 n/a n/a 0 0 0 Total, U.S. 57.22 705 1354 98,872

1 Based on the trend of applicator numbers during th e period 2008 - 2013, these states are not likely to create the commercial chemigation category.
Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existi ng commercial chemigation applicators in states that newly impose the commercial chemigation category must become certified, along with all new commercial chemigation applicators. In subsequent years, th e additional cost of chemigation certification is borne only by new commercial applicators; costs would remain constant thereafter. The PV of costs unde r the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-tim e chemigation applicators in the regions is assumed to be constant over time, existing chemigation applicators in jurisdictions without a category will only need to obtai n certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Cert-02; Commercia l Applicators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 4.4 0 4.4 Alaska 0.0 0 0.0 Arizona 1.9 0 1.9 Arkansas 3.6 0 3.6 California 11.7 0 11.7 Colorado 3.0 0 3.0 Connecticut 0.0 0 0.0 Delaware 4.4 0 4.4 Florida 6.1 0 6.1 Georgia 6.3 0 6.3 Hawaii 0.7 0.7 0.0 Idaho 5.9 0 5.9 Illinois 1.2 0 1.2 Indiana 1.2 0 1.2 Iowa 3.8 0 3.8 Kansas 1.7 0 1.7 Kentucky 1.9 0 1.9 Louisiana 2.5 0 2.5 Maine 0.0 0.0 0.0 Maryland 4.0 0 4.0 Massachusetts 1.7 0 1.7 Michigan 1.8 0 1.8 Minnesota 0.8 0 0.8 Mississippi 3.6 0 3.6 Missouri 1.5 0 1.5 Montana 2.1 0 2.1 Nebraska 1.2 0 1.2 Nevada 0.8 0.8 0.0 New Hampshire 0.0 0 0.0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

New Jersey 4.4 0 4.4 New Mexico 2.4 0 2.4 New York 2.5 0 2.5 North Carolina 6.6 0 6.6 North Dakota 3.1 0 3.1 Ohio 3.5 0 3.5 Oklahoma 6.2 0 6.2 Oregon 4.8 0 4.8 Pennsylvania 2.0 0 2.0 Rhode Island 0.0 0 0.0 South Carolina 4.5 0 4.5 South Dakota 2.6 0 2.6 Tennessee 4.9 0 4.9 Texas 2.9 2.9 0.0 Utah 2.4 0 2.4 Vermont 0.0 0 0.0 Virginia 3.9 3.9 0.0 Washington 14.5 0 14.5 West Virginia 1.7 0 1.7 Wisconsin 0.4 0.4 0.0 Wyoming 3.1 3.1 0.0 Puerto Rico 0.9 0 0.9 Other

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Per chemigation applicator incremental cost = NIC (U.S., annualized value) ÷ (sum of N

1st time + N Exist for all regions)

 3% discount rate used for PV and annualized value*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm Cert-02; Commercial Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 155 12 143 U.S. (annualized value) 18 1 16 Per chemigation applicator incremental cost 0.021

2.1.2.2 Comm Cert-02: Develop New Commerci al Chemigation Certification Exam

Step 2 - Calculate Costs per Jurisdiction of Potential Requirement

Currently, 7 states require chemigation category certification in order for commercial applicators to apply RUPs by chemigation. These states require commercial a pplicators to pass a chemigation category exam for initial certification in the category. They already have the exam, so incur no cost to deve lop it due to Comm Cert-02.

The remaining 43 states, Puerto Rico, and Othe r do not offer or require chemigation category certification for commercial appl icators, so must bear the fu ll cost of developing exams as incremental cost under the potential requirement.

Jurisdictional action necessary to implement potential requirement:

 Develop category-specific exam or training ma terial within two year s of promulgation of final rule Assumptions:

 Jurisdictions not already in compliance will develop exams, except as noted under Step 3, below.

 It takes a Jr. Technician 250 hour s to develop either an exam or training materials for a category

 The opportunity cost of the responsible staff is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

 Development of materials is done once, with labor and cost spread over first two years

Table: Comm Cert-02; St ep 2; Jurisdictions; Cost per Jurisdiction to Develop Material s to Implement Potential Requirement; Develop Chemigation Category Exam

Action Wage ($/hour) Time (hours) Frequency Cost ($) Develop category exam 39.44 250 0.50 4,930 Total 4,930

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per jurisdiction for developing the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements meet or exceed the option are constrained to e qual the cost of the option.

 The cost per jurisdiction of developing the exam for implementation of the potential requirement ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional cost of developing the exam

 The regional cost of the potential requirement (RC P ) is the total annual jurisdictional cost of developing the exam

 Each jurisdiction would devel op one exam for the chemigation category, in the first two years following promulgation of the final rule, i.e., cost r,i, a P = RC P for each jurisdiction

 N Jur is the number of jurisdictions

Given the above: RC B = cost r,i, a B x N Jur RC P = cost r,i, a P x N Jur
Values are presented in the table below.

Table: Comm Cert-02; Jurisdictions; Step 3; Total Annual Baseline and Potential Require ment Costs for Developing Chemigation Category Exam for Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P

($) N Jur RC B ($) RC P ($) 7 states with chemigation category and exam 0 0 7 0 0

Alabama 0 4,930 1 0 4,930 Alaska n/a 1 n/a n/a n/a n/a Arizona 0 4,930 1 0 4,930 Arkansas 0 4,930 1 0 4,930 California 0 4,930 1 0 4,930 Colorado 0 4,930 1 0 4,930 Connecticut n/a n/a n/a n/a n/a Delaware 0 4,930 1 0 4,930 Florida 0 4,930 1 0 4,930 Georgia 0 4,930 1 0 4,930 Idaho 0 4,930 1 0 4,930 Illinois 0 4,930 1 0 4,930 Indiana 0 4,930 1 0 4,930*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Iowa 0 4,930 1 0 4,930 Kansas 0 4,930 1 0 4,930 Kentucky 0 4,930 1 0 4,930 Louisiana 0 4,930 1 0 4,930 Maryland 0 4,930 1 0 4,930 Massachusetts 0 4,930 1 0 4,930 Michigan 0 4,930 1 0 4,930 Minnesota 0 4,930 1 0 4,930 Mississippi 0 4,930 1 0 4,930 Missouri 0 4,930 1 0 4,930 Montana 0 4,930 1 0 4,930 Nebraska 0 4,930 1 0 4,930 New Hampshire n/a n/a n/a n/a n/a New Jersey 0 4,930 1 0 4,930 New Mexico 0 4,930 1 0 4,930 New York 0 4,930 1 0 4,930 North Carolina 0 4,930 1 0 4,930 North Dakota 0 4,930 1 0 4,930 Ohio 0 4,930 1 0 4,930 Oklahoma 0 4,930 1 0 4,930 Oregon 0 4,930 1 0 4,930 Pennsylvania 0 4,930 1 0 4,930 Rhode Island n/a n/a n/a n/a n/a South Carolina 0 4,930 1 0 4,930 South Dakota 0 4,930 1 0 4,930 Tennessee 0 4,930 1 0 4,930 Utah 0 4,930 1 0 4,930 Vermont n/a n/a n/a n/a n/a Washington 0 4,930 1 0 4,930 West Virginia 0 4,930 1 0 4,930 Puerto Rico 0 4,930 1 0 4,930 Other n/a n/a n/a n/a n/a Total, U.S. 46 0 192,270
1 The "n/a" states currently do not have a chem igation category, and based on the applicator number data and trends in recent years (CPARD , 2013), EPA assumed that these states are not likely to create a chemigation category under the proposed rule.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions and develop exam and/or training materials in lin e with the proposed requirements. There would be no further costs. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ௉ ௧ୀଵ ∙ 1.97

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Regional Baseline Cost

 PV IC = Present Value of the Incremental Cost

 PV IC = PV RC P
– PV RC B

Table: Comm Cert-02; Juri sdictions; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1000) PV RC B ($1000) PV IC ($1000) 7 states with chemigation category and exam 0 0 0

Alabama 10 0 10 Alaska n/a 1 n/a n/a Arizona 10 0 10 Arkansas 10 0 10 California 10 0 10 Colorado 0 0 0 Connecticut n/a n/a n/a Delaware 10 0 10 Florida 10 0 10 Georgia 10 0 10 Idaho 10 0 10*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Illinois 10 0 10 Indiana 10 0 10 Iowa 10 0 10 Kansas 10 0 10 Kentucky 10 0 10 Louisiana 10 0 10 Maryland 10 0 10 Massachusetts 10 0 10 Michigan 10 0 10 Minnesota 10 0 10 Mississippi 10 0 10 Missouri 10 0 10 Montana 10 0 10 Nebraska 10 0 10 New Hampshire n/a n/a n/a New Jersey 10 0 10 New Mexico 10 0 10 New York 10 0 10 North Carolina 10 0 10 North Dakota 10 0 10 Ohio 10 0 10 Oklahoma 10 0 10 Oregon 10 0 10 Pennsylvania 10 0 10 Rhode Island n/a n/a n/a South Carolina 10 0 10 South Dakota 10 0 10 Tennessee 10 0 10 Utah 10 0 10 Vermont n/a n/a n/a Washington 10 0 10 West Virginia 10 0 10 Puerto Rico 10 0 10 Other n/a n/a n/a
1 The "n/a" states currently do not have a chem igation category, and based on the applicator number data and trends in recent years (CPARD , 2013), EPA assumed that these states are not likely to create a chemigation category under the proposed rule.

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Comm Cert-02; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 379 0 379 U.S. (annualized value) 43 0 43

2.1.2.3 Comm Cert-02: Administer New Commercial Chemigation Certification Exam

Step 1 - Calculate Baseline Costs

Jurisdictions that Require Certification in Chemigation Category in the Baseline

Seven (7) states (HI, ME, NV, TX, VA, WI, & WY) require chemigation certification in the baseline.

Assumptions:

 Currently, these 7 states are in compli ance with Comm Cert-02, proctoring the certification exam in the baseline

 It takes a Jr. Technician 1 hour to proctor a group of 50 examinees

 Proctoring of certification exam is done every year for the 10-year horizon for the first time applicators

 The wage rate for a Junior Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Comm Cert-02; Step 1; Baseline Cost per Applicator to Proctor Co mmercial Chemigation Category Certification Exam; 7 States Currently Requiring Chemigation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) Proctor category exam 39.44 1 0.02 0.79 Total 0.79

Jurisdictions that do Not Require Certificat ion in Chemigation Category in the Baseline*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

The 43 states, Puerto Rico, and Other do not requir e chemigation certification in the baseline.

Table: Comm Cert-02; Step 1; Baseline Cost per Applicator to Proctor Co mmercial Chemigation Category Certification Exam; Jurisdictions Currently Not Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no category certification requirement 39.44 0 0 0.00

Total 0.00

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Comm Cert-02; Step 2; Cost per Applicator to Proctor Commercia l Chemigation Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($) Proctor category exam 39.44 1 0.02 0.79 Total 0.79

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N 1st = number of “first time chemigation applicators.” This applies to both:

o Commercial applicators who begin appl ying RUPs by chemigation for the first time in a given year, in jurisdictions th at do not require ce rtification in an chemigation category; and

o Commercial applicators who seek certification in the chemigation category for the first time in a given year, in states th at currently require certification in the chemigation category.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 N Xst = number of existing chemigation appli cators. This applies only to existing chemigation applicators for ju risdictions not currently requi ring commercial certification in a chemigation category.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Comm Cert-02; Step 3; Total Annual Baseline and Potential Require ment Costs for Proctoring Chemigation Category Exam for Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i,1st P ($) cost r,i,Xst P ($) N 1st N Xst RC B ($) RC t=3 P ($) RC t>3 P ($)

Alabama 0 0.79 0.79 1.5 21.4 0.00 18.1 1.2 Alaska 0 0.79 0.79 n/a 1 n/a n/a n/a n/a Arizona 0 0.79 0.79 0.7 9.4 0.00 8.0 0.5 Arkansas 0 0.79 0.79 1.2 17.4 0.00 14.7 1.0 California 0 0.79 0.79 4.0 57.5 0.00 48.5 3.2 Colorado 0 0.79 0.79 1.0 14.7 0.00 12.4 0.8 Connecticut 0 0.79 0.79 n/a n/a n/a n/a n/a Delaware 0 0.79 0.79 1.5 21.7 0.00 18.3 1.2 Florida 0 0.79 0.79 2.1 29.8 0.00 25.1 1.6 Georgia 0 0.79 0.79 2.2 31.0 0.00 26.2 1.7 Hawaii 0.79 0.79 0 0.4 6.3 0.35 0.3 0.3 Idaho 0 0.79 0.79 2.0 28.8 0.00 24.3 1.6 Illinois 0 0.79 0.79 0.4 6.1 0.00 5.1 0.3 Indiana 0 0.79 0.79 0.4 5.7 0.00 4.8 0.3 Iowa 0 0.79 0.79 1.3 18.5 0.00 15.6 1.0 Kansas 0 0.79 0.79 0.6 8.3 0.00 7.0 0.5 Kentucky 0 0.79 0.79 0.7 9.5 0.00 8.1 0.5 Louisiana 0 0.79 0.79 0.9 12.3 0.00 10.3 0.7 Maine 0.79 0.79 0 0.0 0.0 0.00 0.0 0.0 Maryland 0 0.79 0.79 1.4 19.9 0.00 16.8 1.1 Massachusetts 0 0.79 0.79 0.6 8.3 0.00 7.0 0.5 Michigan 0 0.79 0.79 0.6 9.1 0.00 7.7 0.5 Minnesota 0 0.79 0.79 0.3 3.8 0.00 3.2 0.2 Mississippi 0 0.79 0.79 1.2 17.8 0.00 15.0 1.0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Missouri 0 0.79 0.79 0.5 7.4 0.00 6.3 0.4 Montana 0 0.79 0.79 0.7 10.2 0.00 8.6 0.6 Nebraska 0 0.79 0.79 0.4 6.1 0.00 5.2 0.3 Nevada 0.79 0.79 0 1 8 0.43 0.4 0.4 New Hampshire 0 0.79 0.79 n/a n/a n/a n/a n/a New Jersey 0 0.79 0.79 1.5 21.6 0.00 18.3 1.2 New Mexico 0 0.79 0.79 0.8 11.8 0.00 10.0 0.7 New York 0 0.79 0.79 0.9 12.3 0.00 10.4 0.7 North Carolina 0 0.79 0.79 2.3 32.7 0.00 27.6 1.8 North Dakota 0 0.79 0.79 1.1 15.4 0.00 13.0 0.9 Ohio 0 0.79 0.79 1.2 17.2 0.00 14.5 0.9 Oklahoma 0 0.79 0.79 2.1 30.7 0.00 25.9 1.7 Oregon 0 0.79 0.79 1.6 23.5 0.00 19.9 1.3 Pennsylvania 0 0.79 0.79 0.7 9.8 0.00 8.2 0.5 Rhode Island 0 0.79 0.79 n/a n/a n/a n/a n/a South Carolina 0 0.79 0.79 1.6 22.2 0.00 18.7 1.2 South Dakota 0 0.79 0.79 0.9 12.6 0.00 10.7 0.7 Tennessee 0 0.79 0.79 1.7 24.0 0.00 20.3 1.3 Texas 0.79 0.79 0 2 28 1.53 1.5 1.5 Utah 0 0.79 0.79 0.8 12.0 0.00 10.2 0.7 Vermont 0 0.79 0.79 n/a n/a n/a n/a n/a Virginia 0.79 0.79 0 3 37 2.05 2.1 2.1 Washington 0 0.79 0.79 5.0 71.1 0.00 60.0 3.9 West Virginia 0 0.79 0.79 0.6 8.6 7.3 0.5 Wisconsin 0.79 0.79 0 0.3 4 0.22 0.2 0.2 Wyoming 0.79 0.79 0 2 30 1.63 1.6 1.6 Puerto Rico 0 0.79 0.79 0.3 4.6 0 3.9 0.3 Other 0 0.79 0.79 n/a n/a n/a n/a n/a Total, U.S. 57 817 6 601
1 The "n/a" states currently do not have a chem igation category, and based on the applicator number data and trends in recent years (CPARD , 2013), EPA assumed that these states are not likely to create a chemigation category under the proposed rule.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existi ng commercial chemigation applicators in states that newly impose the commercial chemigation category must become certified, along with all new commercial chemigation applicators. In subsequent years, th e additional cost of chemigation certification is borne only by new commercial applicators; costs would remain constant thereafter. The PV of costs unde r the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-tim e chemigation applicators in the regions is assumed to be constant over time, existing chemigation applicators in jurisdictions without a category will only need to obtai n certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Cert-0 2; Steps 4 & 5; Jurisdictional Present Values of Potentia l Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000)
Alabama 0.0240 0.0000 0.0240 Alaska n/a 1 n/a n/a Arizona 0.0106 0.0000 0.0106 Arkansas 0.0195 0.0000 0.0195*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

California 0.0644 0.0000 0.0644 Colorado 0.0165 0.0000 0.0165 Connecticut n/a n/a n/a Delaware 0.0243 0.0000 0.0243 Florida 0.0333 0.0000 0.0333 Georgia 0.0347 0.0000 0.0347 Hawaii 0.0031 0.0031 0.0000 Idaho 0.0322 0.0000 0.0322 Illinois 0.0068 0.0000 0.0068 Indiana 0.0063 0.0000 0.0063 Iowa 0.0208 0.0000 0.0208 Kansas 0.0093 0.0000 0.0093 Kentucky 0.0107 0.0000 0.0107 Louisiana 0.0137 0.0000 0.0137 Maine 0.0000 0.0000 0.0000 Maryland 0.0223 0.0000 0.0223 Massachusetts 0.0093 0.0000 0.0093 Michigan 0.0102 0.0000 0.0102 Minnesota 0.0043 0.0000 0.0043 Mississippi 0.0199 0.0000 0.0199 Missouri 0.0083 0.0000 0.0083 Montana 0.0114 0.0000 0.0114 Nebraska 0.0068 0.0000 0.0068 Nevada 0.0038 0.0038 0.0000 New Hampshire n/a n/a n/a New Jersey 0.0242 0.0000 0.0242 New Mexico 0.0132 0.0000 0.0132 New York 0.0138 0.0000 0.0138 North Carolina 0.0366 0.0000 0.0366 North Dakota 0.0173 0.0000 0.0173 Ohio 0.0192 0.0000 0.0192 Oklahoma 0.0344 0.0000 0.0344 Oregon 0.0264 0.0000 0.0264 Pennsylvania 0.0109 0.0000 0.0109 Rhode Island n/a n/a n/a South Carolina 0.0249 0.0000 0.0249 South Dakota 0.0142 0.0000 0.0142 Tennessee 0.0269 0.0000 0.0269 Texas 0.0134 0.0134 0.0000*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Utah 0.0135 0.0000 0.0135 Vermont n/a n/a n/a Virginia 0.0180 0.0180 0.0000 Washington 0.0796 0.0000 0.0796 West Virginia 0.0096 0.0000 0.0096 Wisconsin 0.0019 0.0019 0.0000 Wyoming 0.0143 0.0143 0.0000 Puerto Rico 0.0051 0.0000 0.0051 Other n/a n/a n/a
1 The "n/a" states currently do not have a chem igation category, and based on the applicator number data and trends in recent years (CPARD , 2013), EPA assumed that these states are not likely to create a chemigation category under the proposed rule.

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Comm Cert-02; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 101 U.S. (annualized value) 0.10 0.01 0.09

2.1.3 Commercial General Fumigation Applications

Step 1 - Calculate Baseline Costs per Commercial Applicator for Initial General Fumigation Category Certification
A general fumigation category refers to both so il and non-soil fumigation uses permitted after certification in the single categ ory. Although there is currently no federal general fumigation certification category, three (3) states require ge neral fumigation category certification in order for commercial applicators to apply RUPs by fumigation. Thes e states require commercial*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

applicators to pass a general fumigation category ex am for initial certification in the category. We assume that the standards for these exams, as well as the time and cost necessary to prepare for and take the exams, is equivalent to that of the standards of the potential requirement for a new general fumigation category, that is, the exam takes 1 hour to take plus 7 hours of preparation time, or 8 hours total.

Baseline Cost per Commercial Applicator for Initial Certification in General Fumigation Category; 3 States Currently Requiring General Fumigation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) General fumigation category certification requirement 21.49 8 1 171.92

Total 171.92

The remaining 47 states, Puerto Rico, and “Other ,” do not require or offer a general fumigation category certification for commercial applicators. Although some commerci al applicators apply RUPs by fumigation in these jurisdic tions, the baseline cost is zero.

47 States, Puerto Rico, and “Other” Currentl y With No General Fumigation Category Certification Requirement General fumigation Category Certification Requirement:

 None Assumption:

 Some commercial applicators in jurisdictions without a general fumigation category already apply RUPs by fumigation, without cost for a general fumigation category certification.

Table: Comm Cert-03; Step 1; Commercial Applicators; Baseline Cost per Commercial Applicator for Initial Certification in General Fumigation Category; 47 States, Puerto Rico, and Other Currently Not Requiring General Fumigation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no general fumigation category certification requirement 21.49 0 1 0

Total 0

2.1.3.1 Comm Cert-03: New Commercial General Fumigation Category

Step 2 - Calculate Costs of Potential Requirement per Commercial Applicator Certifying in General Fumigation Category*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

In jurisdictions currently without a general fu migation certification ca tegory, there are some commercial applicators who apply RUPs by fumigation (and legally). Of these, some have been applying RUPs by fumigation for more than a year. Though not certified in the general fumigation category, we will refer to these as “ex isting fumigation applicators.” Also in those jurisdictions, each year some commercial applic ators start applying RUPs by fumigation for the first time, referred to here as “first-time fu migation applicators.” Currently, no jurisdiction requires certification in a general fumigation cat egory, and thus all jurisdictions will be fully impacted under the pote ntial requirements.
General fumigation category certific ation potential requirement:

 Commercial applicators must pass general fumigation category exam Definitions:

 Existing fumigation applicators: Commercial applicators who have been applying RUPs by fumigation for more than one year, in jurisd ictions that do not re quire certification in a general fumigation category.

 First-time fumigation applicators:

o Commercial applicators who begin appl ying RUPs by fumigation for the first time in a given year, in jurisdictions that do not require certifi cation in a general fumigation category; and

o Commercial applicators who seek certification in the general fumigation category for the first time in a given year, in states that currently require certification in the general fumigation category. Assumptions:

 Those taking the general fumigation category exam are already commercial applicators, so have certification in at least one non-appli cation-specific category.

 For first-time fumigation applicators, the ex am takes 1 hour to take plus 7 hours of preparation time, or 8 hours total.

 For existing fumigation applicators, the exam takes 1 hour to take plus 5 hours of preparation time, or 6 hours total. Existing fumigation applicators are assumed to take less time to prepare since they have al ready acquired knowledge and experience in fumigation application.

 The wage rate for commercial applicat ors is $21.49 [insert source and year]

Table: Comm Cert-03; Commercial Applicator s; Step 2; Cost of Potential Requirement per Commercial Applicator Initially Cert ifying in General Fumigation Category

Action Wage ($) Time (hours) Frequency Cost ($) First-time fumigation applicator Prepare and take general fumigation category exam 21.49 8 1 172

Existing fumigation applicator Prepare and take general fumigation category exam 21.49 6 1 129*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per commercial applicator initially certifying in the general fumigation category ( cost r,i, a B ) is presented in Step 1. To avoi d the appearance of cost-savings, the baseline cost in jurisdictions whose re quirements meet or exceed the option are constrained to equal the cost of the option.

 The cost per first-time fumigation applic ator of the potenti al requirement ( cost r,i,1st P ) is the cost under the potential re quirement per commercial appli cator initially certifying in the general fumigation category, in jurisdicti ons both with and wit hout a current general fumigation certification cate gory, presented in Step 2.

 The cost per existing fumigation applic ator of the potenti al requirement ( cost r,i,Xst P ) is the cost under the potential requirement per exis ting fumigation applicat or, in jurisdictions not currently requiring commercial certifi cation in a general fumigation category.

 N 1st = number of “first time fumigation applicators.” As defined under Step 2, this applies to both:

o Commercial applicators who begin appl ying RUPs by fumigation for the first time in a given year, in jurisdictions that do not require certifi cation in a general fumigation category; and

o Commercial applicators who seek certification in the general fumigation category for the first time in a given year, in states that currently require certification in the general fumigation category.

 N Xst = number of existing fumigation applicat ors. This applies only to existing fumigation applicators, as de fined under Step 2, for jurisdictions not currently requiring commercial certification in a general fumigation category.

 There are no data on the numb er of existing or first-time fumigation applicators in regions that do not currently require general fumigation cate gory certification. EPA has estimated the number of existing and first-tim e fumigation applicators in these regions, using data on general fumigation applicator certif ications in the 3 states that certify in the category, as well as other data correlations am ong commercial applicators in those states. See Chapter 3.3.1

 In the 3 states with a commercial general fu migation certification category, state data on the number of commercial applicators who are certified in the general fumigation category for the first time each year, are obtained from the CPARD database (see Chapter 3, Section 3.3)

 The baseline regional cost (RC B ) is the current total annua l regional cost for initial certification of commercial applicators in the general fumigation category.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for commercial applicators, of certification in the general fumigation category under the potential requirement.

 Existing fumigation applicators, in juri sdictions not curren tly requiring general fumigation category certificati on, would all become certified in the general fumigation category one time only, in year three, when th e rule would essentially become effective.

 The same number of first-time fumigation ap plicators would become certified in the general fumigation category annually, starting in year three. This applies to first-time*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

fumigation applicators both in jurisdictions not currently requiri ng general fumigation category certification, as well as in the 3 states that do.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Comm Cert-03; Commercial Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Certification of Commercial Applicators in General Fumigation Category Region cost r,i, a B ($) cost r,i,1st P ($) cost r,i,Xst P ($) N 1st N Xst RC B ($) RC t=3 P ($) RC t>3 P ($) Alabama 0 172 129 6 68 0 9,806 1,029 Alaska 0 172 129 n/a 1 n/a 0 0 0 Arizona 0 172 129 22 259 0 37,115 3,755 Arkansas 0 172 129 15 178 0 25,609 2,656 California 0 172 129 348 4183 0 599,114 59,757 Colorado 0 172 129 9 107 0 15,245 1,469 Connecticut 0 172 129 2 21 0 2,960 295 Delaware 0 172 129 16 166 0 24,077 2,693 Florida 0 172 129 528 6564 0 937,229 90,855 Georgia 0 172 129 33 375 0 53,917 5,616 Hawaii 0 172 129 24 282 0 40,522 4,136 Idaho 0 172 129 39 404 0 58,808 6,706 Illinois 0 172 129 19 234 0 33,418 3,265 Indiana 0 172 129 38 447 0 64,189 6,530 Iowa 0 172 129 101 1081 0 156,682 17,331 Kansas 0 172 129 58 708 0 101,283 10,042 Kentucky 0 172 129 48 586 0 83,792 8,187 Louisiana 0 172 129 16 194 0 27,774 2,793 Maine 0 172 129 7 87 0 12,463 1,201 Maryland 0 172 129 111 1387 0 197,905 19,075 Massachusetts 0 172 129 3 38 0 5,470 527 Michigan 0 172 129 41 455 0 65,706 7,021 Minnesota 0 172 129 28 348 0 49,740 4,887 Mississippi 0 172 129 7 77 0 11,048 1,128 Missouri 0 172 129 41 489 0 70,119 7,035 Montana 0 172 129 n/a n/a 0 0 0 Nebraska 0 172 129 38 471 0 67,254 6,520 Nevada 0 172 129 3 42 0 5,970 575 New Hampshire 0 172 129 1 8 0 1,142 110*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

New Jersey 0 172 129 12 143 0 20,488 2,055 New Mexico 0 172 129 6 75 0 10,691 1,083 New York 0 172 129 92 887 0 130,208 15,852 North Carolina 0 172 129 18 211 0 30,317 3,109 North Dakota 0 172 129 41 516 0 73,692 7,133 Ohio 0 172 129 32 386 0 55,316 5,585 Oklahoma 0 172 129 73 868 0 124,495 12,523 Oregon 0 172 129 36 379 0 55,106 6,235 Pennsylvania 0 172 129 41 511 0 73,006 7,114 Rhode Island 0 172 129 1 10 0 1,451 140 South Carolina 0 172 129 17 201 0 28,786 2,850 South Dakota 0 172 129 18 223 0 31,907 3,098 Tennessee 0 172 129 24 302 0 43,174 4,184 Texas 0 172 129 103 1220 0 175,067 17,690 Utah 0 172 129 9 111 0 15,869 1,529 Vermont 0 172 129 n/a n/a 0 0 0 Virginia 0 172 129 23 257 0 37,100 3,918 Washington 0 172 129 81 774 0 113,597 13,855 West Virginia 0 172 129 3 39 0 5,494 530 Wisconsin 0 172 129 23 263 0 37,914 3,979 Wyoming 0 172 129 7 72 0 10,438 1,142 Puerto Rico 0 172 129 1 12 0 1,721 220 Other 0 172 129 n/a n/a 0 0 0 Total, U.S. 2,263 25,851 12,943 3,720,682

1 Based on the trend of applicator numbers during th e period 2008 - 2013, these states are not likely to create the commercial general fumigation category.

Step 4 - Calculate the PV of Costs
Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.
Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existi ng commercial fumigation applicators in states that newly impose the commerci al general fumigation category must become certified, along with all new commercial fumigation applicators. In subsequent years, the additional cost of general fumigation certification is borne only by new commercial appl icators; costs would remain constant thereafter. The PV of cost s under the proposal, at a 3% discount rate, is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-tim e fumigation applicators in the regions is assumed to be constant over time, existing fu migation applicators in jurisdictions without a category will only need to obtain certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Cert-03; Commercia l Applicators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 15.3 0 15.3 Alaska 0.0 0 0.0 Arizona 57.0 0 57.0 Arkansas 18.1 0 18.1 California 915.7 0 915.7 Colorado 23.0 0 23.0 Connecticut 4.5 0 4.5 Delaware 38.5 0 38.5 Florida 1,417.0 0 1,417.0 Georgia 83.8 0 83.8 Hawaii 62.5 0 62.5 Idaho 94.8 0 94.8 Illinois 22.3 0 22.3 Indiana 98.9 0 98.9 Iowa 249.5 0 249.5 Kansas 154.4 0 154.4 Kentucky 127.1 0 127.1 Louisiana 42.6 0 42.6 Maine 18.8 0 18.8*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Maryland 298.6 0 298.6 Massachusetts 8.3 0 8.3 Michigan 47.9 0 47.9 Minnesota 75.6 0 75.6 Mississippi 17.0 0 17.0 Missouri 107.4 0 107.4 Montana 0.0 0 0.0 Nebraska 101.7 0 101.7 Nevada 9.0 0 9.0 New Hampshire 1.7 0 1.7 New Jersey 31.4 0 31.4 New Mexico 16.4 0 16.4 New York 215.8 0 215.8 North Carolina 46.8 0 46.8 North Dakota 111.4 0 111.4 Ohio 84.9 0 84.9 Oklahoma 190.9 0 190.9 Oregon 88.6 0 88.6 Pennsylvania 110.6 0 110.6 Rhode Island 2.2 0 2.2 South Carolina 43.9 0 43.9 South Dakota 48.3 0 48.3 Tennessee 65.3 0 65.3 Texas 268.9 0 268.9 Utah 23.9 0 23.9 Vermont 0.0 0 0.0 Virginia 58.0 0 58.0 Washington 188.4 0 188.4 West Virginia 8.3 0 8.3 Wisconsin 59.1 0 59.1 Wyoming 16.5 0 16.5 Puerto Rico 2.9 0 2.9 Other

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Per fumigation applicator incremental cost = NIC (U.S., annualized value) ÷ (sum of N 1st
time + N Exist for all regions)

 3% discount rate used for PV and annualized value

Table: Comm Cert-03; Commercial Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 5,793 0 5,793 U.S. (annualized value) 659 0 659 Per fumigation applicator incremental cost 0.023

2.1.3.2 Comm Cert-03: Develop New Commercial General Fumigation Certification Exam

Step 2 - Calculate Costs per Jurisdiction of Potential Requirement

In the baseline, no jurisdiction offers or requi res general fumigation category certification for commercial applicators, so they must bear the full cost of de veloping exams under the potential requirement.

Jurisdictional action necessary to implement potential requirement:

 Develop category-specific exam or training ma terial within two year s of promulgation of final rule Assumptions:

 Jurisdictions not already in compliance will develop exams, except as noted under Step 3, below.

 It takes a Jr. Technician 250 hour s to develop either an exam or training materials for a category

 The opportunity cost of the responsible staff is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

 Development of materials is done once, with labor and cost spread over first two years

Table: Comm Cert-03; St ep 2; Jurisdictions; Cost per Jurisdiction to Develop Material s to Implement Potential Requirement; Develop General Fumigation Category Exam

Action Wage ($/hour) Time (hours) Frequency Cost ($) Develop category exam 39.44 250 0.50 4,930 Total 4,930

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per jurisdiction for developing the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements meet or exceed the option are constrained to e qual the cost of the option.

 The cost per jurisdiction of developing the exam for implementation of the potential requirement ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional cost of developing the exam

 The regional cost of the potential requirement (RC P ) is the total annual jurisdictional cost of developing the exam

 Each jurisdiction would develop one exam for the general fumigation category, in the first two years following promulgation of the final rule, i.e., cost r,i, a P = RC P for each jurisdiction

 N Jur is the number of jurisdictions

Given the above: RC B = cost r,i, a B x N Jur RC P = cost r,i, a P x N Jur
Values are presented in the table below.

Table: Comm Cert-03; Jurisdictions; Step 3; Total Annual Baseline and Potential Requi rement Costs for Developing General Fumigation Category Exam for Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P

($) N Jur RC B ($) RC P ($) Alabama 0 4,930 1 0 4,930 Alaska n/a 1 n/a n/a n/a n/a Arizona 0 4,930 1 0 4,930 Arkansas 0 4,930 1 0 4,930 California 0 4,930 1 0 4,930 Colorado 0 4,930 1 0 4,930 Connecticut 0 4,930 1 0 4,930 Delaware 0 4,930 1 0 4,930 Florida 0 4,930 1 0 4,930 Georgia 0 4,930 1 0 4,930 Hawaii 0 4,930 1 0 4,930 Idaho 0 4,930 1 0 4,930 Illinois 0 4,930 1 0 4,930 Indiana 0 4,930 1 0 4,930 Iowa 0 4,930 1 0 4,930 Kansas 0 4,930 1 0 4,930*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Kentucky 0 4,930 1 0 4,930 Louisiana 0 4,930 1 0 4,930 Maine 0 4,930 1 0 4,930 Maryland 0 4,930 1 0 4,930 Massachusetts 0 4,930 1 0 4,930 Michigan 0 4,930 1 0 4,930 Minnesota 0 4,930 1 0 4,930 Mississippi 0 4,930 1 0 4,930 Missouri 0 4,930 1 0 4,930 Montana n/a n/a n/a n/a n/a Nebraska 0 4,930 1 0 4,930 Nevada 0 4,930 1 0 4,930 New Hampshire 0 4,930 1 0 4,930 New Jersey 0 4,930 1 0 4,930 New Mexico 0 4,930 1 0 4,930 New York 0 4,930 1 0 4,930 North Carolina 0 4,930 1 0 4,930 North Dakota 0 4,930 1 0 4,930 Ohio 0 4,930 1 0 4,930 Oklahoma 0 4,930 1 0 4,930 Oregon 0 4,930 1 0 4,930 Pennsylvania 0 4,930 1 0 4,930 Rhode Island 0 4,930 1 0 4,930 South Carolina 0 4,930 1 0 4,930 South Dakota 0 4,930 1 0 4,930 Tennessee 0 4,930 1 0 4,930 Texas 0 4,930 1 0 4,930 Utah 0 4,930 1 0 4,930 Vermont n/a n/a n/a n/a n/a Virginia 0 4,930 1 0 4,930 Washington 0 4,930 1 0 4,930 West Virginia 0 4,930 1 0 4,930 Wisconsin 0 4,930 1 0 4,930 Wyoming 0 4,930 1 0 4,930 Puerto Rico 0 4,930 1 0 4,930 Other n/a n/a n/a n/a n/a Total, U.S. 48 0 236,640
1 The "n/a" states currently do not have a general fumigation cate gory, and based on the applicator number data and trends in recen t years (CPARD, 2013), EPA assumed that these states are not likely to create a general fu migation category under the proposed rule.

Step 4 - Calculate the PV of Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions and develop exam and/or training materials in lin e with the proposed requirements. There would be no further costs. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ௉ ௧ୀଵ ∙ 1.97

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Regional Baseline Cost

 PV IC = Present Value of the Incremental Cost

 PV IC = PV RC P
– PV RC B

Table: Comm Cert-03; Juri sdictions; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1000) PV RC B ($1000) PV IC ($1000) 3 states with general fumigation category and exam 0 0 0

Alabama 10 0 10 Alaska n/a 1 n/a n/a Arizona 10 0 10 Arkansas 10 0 10 California 10 0 10 Colorado 10 0 10 Connecticut 10 0 10 Delaware 10 0 10*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Florida 10 0 10 Georgia 10 0 10 Hawaii 10 0 10 Idaho 10 0 10 Illinois 10 0 10 Indiana 10 0 10 Iowa 10 0 10 Kansas 10 0 10 Kentucky 10 0 10 Louisiana 10 0 10 Maine 10 0 10 Maryland 10 0 10 Massachusetts 10 0 10 Michigan 10 0 10 Minnesota 10 0 10 Mississippi 10 0 10 Missouri 10 0 10 Montana n/a n/a n/a Nebraska 10 0 10 Nevada 10 0 10 New Hampshire 10 0 10 New Jersey 10 0 10 New Mexico 10 0 10 New York 10 0 10 North Carolina 10 0 10 North Dakota 10 0 10 Ohio 10 0 10 Oklahoma 10 0 10 Oregon 10 0 10 Pennsylvania 10 0 10 Rhode Island 10 0 10 South Carolina 10 0 10 South Dakota 10 0 10 Tennessee 10 0 10 Texas 10 0 10 Utah 10 0 10 Vermont n/a n/a n/a Virginia 10 0 10 Washington 10 0 10 West Virginia 10 0 10 Wisconsin 10 0 10 Wyoming 10 0 10 Puerto Rico 10 0 10 Other n/a n/a n/a*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

1 The "n/a" states currently do not have a general fumigation cate gory, and based on the applicator number data and trends in recen t years (CPARD, 2013), EPA assumed that these states are not likely to create a general fu migation category under the proposed rule.

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Comm Cert-03; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 466 0 466 U.S. (annualized value) 53 0 53

2.1.3.3 Comm Cert-03: Administer New Commercial General Fumigation Certification Exam

Step 1 - Calculate Baseline Costs

Jurisdictions that Require Certification in General Fumigation Category in the Baseline

Three (3) states (AR, IL, & MI) require gene ral fumigation certification in the baseline.

Assumptions:

 Currently, these 3 states are in compli ance with Comm Cert-03, proctoring the certification exam in the baseline

 It takes a Jr. Technician 1 hour to proctor a group of 50 examinees

 Proctoring of certification exam is done every year for the 10-year horizon for the first time applicators

 The wage rate for a Junior Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Comm Cert-03; Step 1;*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Baseline Cost per Applicator to Procto r Commercial General Fumigation Category Certification Exam; 3 Stat es Currently Requiring General Fumigation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) Proctor category exam 39.44 1 0.02 0.79 Total 0.79

Jurisdictions that do Not Require Certificat ion in General Fumigation Category in the Baseline

The 47 states, Puerto Rico, and Other do not re quire general fumigation certification in the baseline.

Table: Comm Cert-03; Step 1; Baseline Cost per Applicator to Proctor Commercial General fumigation Category Certification Exam; Jurisd ictions Currently Not Requiri ng Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no category certification requirement 39.44 0 0 0.00

Total 0.00

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Comm Cert-03; Step 2; Cost per Applicator to Proctor Commercia l General fumigation Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($) Proctor category exam 39.44 1 0.02 0.79 Total 0.79

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N 1st = number of “first time general fumigati on applicators.” This applies to both:

o Commercial applicators who begin appl ying RUPs by general fumigation for the first time in a given year, in jurisdictions that do not require certification in an general fumigation category; and

o Commercial applicators who seek certification in the general fumigation category for the first time in a given year, in states that currently require certification in the general fumigation category.

 N Xst = number of existing general fumigation a pplicators. This applies only to existing general fumigation applicators for jurisd ictions not currently requiring commercial certification in a genera l fumigation category.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Comm Cert-03; Step 3; Total Annual Baseline and Potential Requi rement Costs for Proctoring General Fumigation Category Exam for Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i,1st P ($) cost r,i,Xst P ($) N 1st N Xst RC B ($) RC t=3 P ($) RC t>3 P ($)

Alabama 0 0.79 0.79 6 68 0 58 5 Alaska 0 0.79 0.79 n/a 1 n/a n/a n/a n/a Arizona 0 0.79 0.79 22 259 0 221 17 Arkansas 0.79 0.79 0 15 178 12 12 12 California 0 0.79 0.79 348 4,183 0 3,574 274 Colorado 0 0.79 0.79 9 107 0 91 7 Connecticut 0 0.79 0.79 2 21 0 18 1 Delaware 0 0.79 0.79 16 166 0 143 12 Florida 0 0.79 0.79 528 6,564 0 5,594 417 Georgia 0 0.79 0.79 33 375 0 321 26*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Hawaii 0 0.79 0.79 24 282 0 242 19 Idaho 0 0.79 0.79 39 404 0 349 31 Illinois 0.79 0.79 0 19 234 15 15 15 Indiana 0 0.79 0.79 38 447 0 383 30 Iowa 0 0.79 0.79 101 1,081 0 932 80 Kansas 0 0.79 0.79 58 708 0 604 46 Kentucky 0 0.79 0.79 48 586 0 500 38 Louisiana 0 0.79 0.79 16 194 0 166 13 Maine 0 0.79 0.79 7 87 0 74 6 Maryland 0 0.79 0.79 111 1,387 0 1,181 88 Massachusetts 0 0.79 0.79 3 38 0 33 2 Michigan 0.79 0.79 0 41 455 32 32 32 Minnesota 0 0.79 0.79 28 348 0 297 22 Mississippi 0 0.79 0.79 7 77 0 66 5 Missouri 0 0.79 0.79 41 489 0 418 32 Montana 0 0.79 0.79 n/a n/a n/a n/a n/a Nebraska 0 0.79 0.79 38 471 0 401 30 Nevada 0 0.79 0.79 3 42 0 36 3 New Hampshire 0 0.79 0.79 1 8 0 7 1 New Jersey 0 0.79 0.79 12 143 0 122 9 New Mexico 0 0.79 0.79 6 75 0 64 5 New York 0 0.79 0.79 92 887 0 772 73 North Carolina 0 0.79 0.79 18 211 0 181 14 North Dakota 0 0.79 0.79 41 516 0 440 33 Ohio 0 0.79 0.79 32 386 0 330 26 Oklahoma 0 0.79 0.79 73 868 0 742 57 Oregon 0 0.79 0.79 36 379 0 328 29 Pennsylvania 0 0.79 0.79 41 511 0 436 33 Rhode Island 0 0.79 0.79 1 10 0 9 1 South Carolina 0 0.79 0.79 17 201 0 172 13 South Dakota 0 0.79 0.79 18 223 0 190 14 Tennessee 0 0.79 0.79 24 302 0 258 19 Texas 0 0.79 0.79 103 1,220 0 1,044 81 Utah 0 0.79 0.79 9 111 0 95 7 Vermont 0 0.79 0.79 n/a n/a n/a n/a n/a Virginia 0 0.79 0.79 23 257 0 221 18 Washington 0 0.79 0.79 81 774 0 674 64 West Virginia 0 0.79 0.79 3 39 0 33 2*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Wisconsin 0 0.79 0.79 23 263 0 226 18 Wyoming 0 0.79 0.79 7 72 0 62 5 Puerto Rico 0 0.79 0.79 1 12 0 10 1 Other 0 0.79 0.79 n/a n/a n/a n/a n/a Total, U.S. 2,263 26,718 59 22,176
1 The "n/a" states currently do not have a general fumigation cate gory, and based on the applicator number data and trends in recen t years (CPARD, 2013), EPA assumed that these states are not likely to create a general fu migation category under the proposed rule.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existi ng commercial general fumigation applicators in states that newly impose the commercial gene ral fumigation category must become certified, along with all new commercial general fumigati on applicators. In subsequent years, the additional cost of general fumigation certificatio n is borne only by new commercial applicators; costs would remain constant ther eafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-time general fumigation applic ators in the regions is assumed to be constant over time, existing general fumigation applicators in*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

jurisdictions without a category will only need to obtain certif ication once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Cert-0 3; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000)

Alabama 0.08 0.00 0.08 Alaska n/a 1 n/a n/a Arizona 0.31 0.00 0.31 Arkansas 0.11 0.11 0.00 California 4.98 0.00 4.98 Colorado 0.13 0.00 0.13 Connecticut 0.02 0.00 0.02 Delaware 0.21 0.00 0.21 Florida 7.72 0.00 7.72 Georgia 0.45 0.00 0.45 Hawaii 0.34 0.00 0.34 Idaho 0.51 0.00 0.51 Illinois 0.13 0.13 0.00 Indiana 0.54 0.00 0.54 Iowa 1.35 0.00 1.35 Kansas 0.84 0.00 0.84 Kentucky 0.69 0.00 0.69 Louisiana 0.23 0.00 0.23 Maine 0.10 0.00 0.10 Maryland 1.63 0.00 1.63 Massachusetts 0.04 0.00 0.04 Michigan 0.28 0.28 0.00 Minnesota 0.41 0.00 0.41 Mississippi 0.09 0.00 0.09 Missouri 0.58 0.00 0.58*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Montana n/a n/a n/a Nebraska 0.55 0.00 0.55 Nevada 0.05 0.00 0.05 New Hampshire 0.01 0.00 0.01 New Jersey 0.17 0.00 0.17 New Mexico 0.09 0.00 0.09 New York 1.16 0.00 1.16 North Carolina 0.25 0.00 0.25 North Dakota 0.61 0.00 0.61 Ohio 0.46 0.00 0.46 Oklahoma 1.04 0.00 1.04 Oregon 0.48 0.00 0.48 Pennsylvania 0.60 0.00 0.60 Rhode Island 0.01 0.00 0.01 South Carolina 0.24 0.00 0.24 South Dakota 0.26 0.00 0.26 Tennessee 0.36 0.00 0.36 Texas 1.46 0.00 1.46 Utah 0.13 0.00 0.13
Vermont n/a n/a n/a Virginia 0.31 0.00 0.31 Washington 1.01 0.00 1.01 West Virginia 0.05 0.00 0.05 Wisconsin 0.32 0.00 0.32 Wyoming 0.09 0.00 0.09 Puerto Rico 0.02 0.00 0.02 Other n/a n/a n/a

1 The "n/a" states currently do not have a general fumigation cate gory, and based on the applicator number data and trends in recen t years (CPARD, 2013), EPA assumed that these states are not likely to create a general fu migation category under the proposed rule.

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Comm Cert-03; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 32 1 31 U.S. (annualized value) 3.6 0.1 3.5

Commercial Soil Fumigation and Non-Soil Fumigation Applications

An alternative approach to a new general fu migation commercial certif ication category, which would allow both soil and non-soil fumigation uses af ter certification in th e single category, is to require certification in separa te soil fumigation and non-soil fu migation categories in order for commercial applicators to apply RUPs with th e respective application methods. Commercial applicators could become certified in either, or both, of these pot ential new categories, depending on the fumigant uses they wish to utilize. Th erefore, this approach essentially entails two separate potential requirements: a new co mmercial soil fumigati on category, and a new commercial non-soil fumigation category.

2.1.4 Commercial Soil Fumigation Category

Following requirements on existing soil fumigant product labels would effectively satisfy certification requirements for comme rcial applicators in the potent ial soil fumigation category. It is a violation of Federal law to use a pesticide in a manner in consistent with its labeling. Therefore, commercial applicators who use soil fu migants are already in full compliance with the potential new soil fumigation catego ry in all jurisdictions. There would be zero incremental cost of establishing the Federal soil fumigation catego ry, therefore, no analysis was conducted for this potential requirement.

2.1.5 Commercial Non-Soil Fumigation Category

Step 1 - Calculate Baseline Costs per Commercial Applicator for Initial Certification in NonSoil Fumigation Category
Although there is currently no federal non-soil fumigation certification category, 41 states require non-soil fumigation categor y certification in order for co mmercial applicators to apply RUPs by non-soil fumigation. These states requ ire commercial applicators to pass a non-soil fumigation category exam for initial certification in the category. We assume that the standards*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

for these exams, as well as the time and cost necessary to prepare for and take the exams, is equivalent to that of the standards of the potential requirement for a new non-soil fumigation category, that is, the exam takes 1 hour to take plus 7 hours of preparation time, or 8 hours total.

Baseline Cost per Commercial Applicator for Initial Certification in Non-soil Fumigation Category; 41 States Currently Requiring Non-so il Fumigation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) Non-soil fumigation category certification requirement 21.49 8 1 171.92

Total 171.92

The remaining 9 states, Puerto Rico, and “Other ,” do not require or offer a non-soil fumigation category certification for commercial applicators. Although some commerci al applicators apply RUPs by non-soil fumigation in these juri sdictions, the baseline cost is zero.

9 States, Puerto Rico, and “Other” Currentl y With No Non-soil Fumigation Category Certification Requirement Non-soil fumigation Category Certification Requirement:

 None Assumption:

 Some commercial applicators in jurisdictions without a non-soil fumigation category already apply RUPs by non-soil fumigation, without cost for a non-soil fumigation category certification.

Table: Comm Cert-04; Step 1; Commercial Applicators; Baseline Cost per Commercial Applicator for Initial Certification in Non-soil Fumigation Category; 9 States, Puerto Rico, and Other Currently Not Requiring Non-soil Fumigation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no non-soil fumigation category certification requirement 21.49 0 1 0

2.1.5.1 Comm Cert-04: New Commercial Non-soil Fumigation Category

Step 2 - Calculate Costs of Potential Requirement per Commercial Applicator Certifying in Non-soil Fumigation Category
In jurisdictions currently without a non-soil fu migation certification category, there are some commercial applicators who appl y RUPs by non-soil fumigation (and legally). Of these, some*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

have been applying RUPs by non-soil fumigation fo r more than a year. Though not certified in the non-soil fumigation category, we will refe r to these as “existing non-soil fumigation applicators.” Also in those jurisdictions, each year some commercial a pplicators start applying RUPs by non-soil fumigation for the first time, re ferred to here as “first-time non-soil fumigation applicators.”
Since initial certification only occurs once, in the 41 states that requ ire non-soil fumigation category certification, those appli cators already certified in the non-soil fumigation category are not applicable to this potential requirement. They are certified fumi gation applicators, not “existing non-soil fumigation app licators.” However, in these 41 states with the non-soil fumigation category, there are comm ercial applicators that seek certification in the non-soil fumigation category for the first time in a given year . They are considered here as an additional group of “first-time non-soil fumigation applicators.”
Non-soil fumigation category certification potential requirement:

 Commercial applicators must pass non-soil fumigation category exam Definitions:

 Existing non-soil fumigation applicators: Commercial applicators who have been applying RUPs by non-soil fumigation for more than one year, in jurisd ictions that do not require certification in a non-soil fumigation category.

 First-time non-soil fumigation applicators:

o Commercial applicators who begin appl ying RUPs by non-soil fumigation for the first time in a given year, in jurisdictions that do not require certification in a nonsoil fumigation category; and

o Commercial applicators who seek cer tification in the non-soil fumigation category for the first time in a given year, in states that currently require certification in the non-s oil fumigation category. Assumptions:

 Those taking the non-soil fumigation category ex am are already commercial applicators, so have certification in at least one non-appli cation-specific category.

 For first-time non-soil fumigation applicators, the exam takes 1 hour to take plus 7 hours of preparation time, or 8 hours total.

 For existing non-soil fumigation applicators, th e exam takes 1 hour to take plus 5 hours of preparation time, or 6 hours total. Existing non-soil fumigation applicators are assumed to take less time to prepare since they have already acquired knowledge and experience in fumigation application.

 The wage rate for commercial applicat ors is $21.49 [insert source and year]*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm Cert-04; Commercial Applicator s; Step 2; Cost of Potential Requirement per Commercial Applicator Initially Cert ifying in Non-soil Fumigation Category

Action Wage ($) Time (hours) Frequency Cost ($) First-time non-soil fumigation applicator Prepare and take nonsoil fumigation category exam 21.49 8 1 172

Existing non-soil fumigation applicator Prepare and take nonsoil fumigation category exam 21.49 6 1 129

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per commercial applicator initially certifying in the non-soil fumigation category ( cost r,i, a B ) is presented in Step 1. To avoi d the appearance of cost-savings, the baseline cost in jurisdictions whose re quirements meet or exceed the option are constrained to equal the cost of the option.

 The cost per first-time non-soil fumigation ap plicator of the potential requirement ( cost r,i,1st P ) is the cost under the potential requirement per commercial applicator initially certifying in the non-soil fumigation category, in jurisdictions both with and without a current non-soil fumigation certificati on category, presented in Step 2.

 The cost per existing non-soil fumigation ap plicator of the potential requirement ( cost r,i,Xst P ) is the cost under the potential requirement per existing non-soil fumigation applicator, in jurisdic tions not currently requiring comme rcial certification in a non-soil fumigation category.

 N 1st = number of “first time fumigation applicators.” As defined under Step 2, this applies to both:

o Commercial applicators who begin appl ying RUPs by non-soil fumigation for the first time in a given year, in jurisdictions that do not require certification in a nonsoil fumigation category; and

o Commercial applicators who seek cer tification in the non-soil fumigation category for the first time in a given year, in states that currently require certification in the non-s oil fumigation category.

 N Xst = number of existing non-soil fumigation app licators. This applies only to existing non-soil fumigation applicators, as defined under Step 2, for jurisdictions not currently requiring commercial cer tification in a non-soil fumigation category.

 There are no data on the numb er of existing or first-time non-soil fumigation applicators in regions that do not currently require non- soil fumigation category certification. EPA has estimated the number of existing and fi rst-time non-soil fumigation applicators in these regions, using data on non-soil fumigation applicator certificati ons in the 41 states that certify in the category, as well as other data correlati ons among commercial applicators in those states. See Chapter 3.3.1*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 In the 41 states with a commercial non-soil fu migation certification category, state data on the number of commercial applicators w ho are certified in the non-soil fumigation category for the first time each year, are obtained from the CPARD database (see Chapter 3, Section 3.3)

 The baseline regional cost (RC B ) is the current total annua l regional cost for initial certification of commercial applicators in the non-soil fumigation category.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for commercial applicators, of certification in the non-soil fumigation category under the potential requirement.

 Existing non-soil fumigation applicators, in ju risdictions not currently requiring non-soil fumigation category certificati on, would all become certified in the non-soil fumigation category one time only, in year three, when th e rule would essentially become effective.

 The same number of first-time non-soil fumiga tion applicators would become certified in the non-soil fumigation category annu ally, starting in year three. This applies to first-time non-soil fumigation applicators both in ju risdictions not currently requiring non-soil fumigation category certifi cation, as well as in th e 41 states that do.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Comm Cert-04; Commercial Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Certification of Commercial Applicators in No n-soil Fumigation Category

Region cost r,i, a B ($) cost r,i,1st P ($) cost r,i,Xst P ($) N 1st N Xst RC B RC t=3 P RC t>3 P
($) ($) ($)
Alabama 172 172 n/a 1 4 50 690 690 690
Alaska n/a 172 129 n/a n/a 0 0 0 Arizona 172 172 129 18 221 3,035 3,035 3,035 Arkansas 172 172 129 11 138 1,894 1,894 1,894 California 0 172 129 300 3,751 0 535,327 51,598 Colorado 172 172 129 9 107 1,469 1,469 1,469 Connecticut 172 172 129 1 19 257 257 257 Delaware 172 172 129 7 86 1,183 1,183 1,183 Florida 172 172 129 516 6,452 88,746 88,746 88,746 Georgia 172 172 129 23 285 3,915 3,915 3,915 Hawaii 172 172 129 19 233 3,200 3,200 3,200 Idaho 0 172 129 15 181 0 25,885 2,495*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Illinois 172 172 129 18 224 3,086 3,086 3,086 Indiana 172 172 129 30 374 5,137 5,137 5,137 Iowa 172 172 129 48 602 8,285 8,285 8,285 Kansas 0 172 129 52 648 0 92,420 8,908 Kentucky 172 172 129 45 563 7,737 7,737 7,737 Louisiana 0 172 129 14 169 0 24,106 2,323 Maine 172 172 129 7 87 1,201 1,201 1,201 Maryland 172 172 129 111 1,387 19,075 19,075 19,075 Massachusetts 172 172 129 3 38 527 527 527 Michigan 0 172 129 25 307 0 43,879 4,229 Minnesota 172 172 129 26 328 4,509 4,509 4,509 Mississippi 172 172 129 5 63 871 871 871 Missouri 172 172 129 34 430 5,914 5,914 5,914 Montana n/a 172 129 n/a n/a 0 0 0 Nebraska 172 172 129 37 463 6,368 6,368 6,368 Nevada 172 172 129 3 42 575 575 575 New Hampshire 172 172 129 1 8 110 110 110 New Jersey 172 172 129 10 126 1,731 1,731 1,731 New Mexico 172 172 129 5 63 871 871 871 New York 172 172 129 14 178 2,453 2,453 2,453 North Carolina 172 172 129 14 171 2,352 2,352 2,352 North Dakota 172 172 129 41 510 7,010 7,010 7,010 Ohio 172 172 129 27 331 4,557 4,557 4,557 Oklahoma 172 172 129 60 756 10,398 10,398 10,398 Oregon 172 172 129 14 181 2,487 2,487 2,487 Pennsylvania 172 172 129 40 495 6,802 6,802 6,802 Rhode Island 172 172 129 1 10 140 140 140 South Carolina 172 172 129 15 185 2,542 2,542 2,542 South Dakota 172 172 129 17 219 3,008 3,008 3,008 Tennessee 0 172 129 24 298 0 42,466 4,093 Texas 172 172 129 84 1,045 14,378 14,378 14,378 Utah 172 172 129 9 111 1,529 1,529 1,529 Vermont n/a 172 129 n/a n/a 0 0 0 Virginia 172 172 129 15 184 2,531 2,531 2,531 Washington 172 172 129 12 150 2,063 2,063 2,063 West Virginia 172 172 129 3 39 530 530 530 Wisconsin 172 172 129 15 194 2,661 2,661 2,661*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Wyoming 172 172 129 3 43 591 591 591 Puerto Rico n/a 172 129 n/a n/a 0 0 0 Other n/a 172 129 n/a n/a 0 0 0 Total, U.S. 1,803 5,354 236,422 1,000,504

1 Based on the trend of applicator numbers during th e period 2008 - 2013, these states are not likely to create the commercial non-soil fumigation category.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existi ng commercial fumigation applicators in states that newly impose the commerci al non-soil fumigation category must become certified, along with all new commercial fumigation applicators. In subsequent years, the additional cost of nonsoil fumigation certification is borne only by new commercial app licators; costs would remain constant thereafter. The PV of costs unde r the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-tim e non-soil fumigation applic ators in the regions is assumed to be constant over time, ex isting non-soil fumigation applicators in jurisdictions without a category will only need to obtain certif ication once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Cert-04; Commercia l Applicators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 6.1 6.1 0.0 Alaska 0 0.0 Arizona 26.7 26.7 0.0 Arkansas 16.6 16.6 0.0 California 807.6 0 807.6 Colorado 12.9 12.9 0.0 Connecticut 2.3 2.3 0.0 Delaware 10.4 10.4 0.0 Florida 779.7 779.7 0.0 Georgia 34.4 34.4 0.0 Hawaii 28.1 28.1 0.0 Idaho 39.1 0 39.1 Illinois 27.1 27.1 0.0 Indiana 45.1 45.1 0.0 Iowa 72.8 72.8 0.0 Kansas 139.4 0 139.4 Kentucky 68.0 68.0 0.0 Louisiana 36.4 0 36.4 Maine 10.6 10.6 0.0 Maryland 167.6 167.6 0.0 Massachusetts 4.6 4.6 0.0 Michigan 66.2 0 66.2 Minnesota 39.6 39.6 0.0 Mississippi 7.7 7.7 0.0 Missouri 52.0 52.0 0.0 Montana 0 0.0 Nebraska 56.0 56.0 0.0 Nevada 5.1 5.1 0.0 New Hampshire 1.0 1.0 0.0 New Jersey 15.2 15.2 0.0 New Mexico 7.7 7.7 0.0 New York 21.6 21.6 0.0 North Carolina 20.7 20.7 0.0 North Dakota 61.6 61.6 0.0 Ohio 40.0 40.0 0.0 Oklahoma 91.4 91.4 0.0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Oregon 21.9 21.9 0.0 Pennsylvania 59.8 59.8 0.0 Rhode Island 1.2 1.2 0.0 South Carolina 22.3 22.3 0.0 South Dakota 26.4 26.4 0.0 Tennessee 64.1 0 64.1 Texas 126.3 126.3 0.0 Utah 13.4 13.4 0.0 Vermont 0 0.0 Virginia 22.2 22.2 0.0 Washington 18.1 18.1 0.0 West Virginia 4.7 4.7 0.0 Wisconsin 23.4 23.4 0.0 Wyoming 5.2 5.2 0.0 Puerto Rico Other

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Per fumigation applicator incremental cost = NIC (U.S., annualized value) ÷ (sum of N 1st
time + N Exist for all regions)

 3% discount rate used for PV and annualized value
Table: Comm Cert-04; Commercial Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 3,230 2,077 1,153 U.S. (annualized value) 368 236 131 Per fumigation applicator incremental cost 0.018*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

2.1.5.2 Comm Cert-04: Develop New Commercial Non-Soil Fumigation Certification Exam

Step 2 - Calculate Costs per Jurisdiction of Potential Requirement

Currently, 41 states require non- soil fumigation category certifi cation in order for commercial applicators to apply RUPs by fumigation. These st ates require commercial applicators to pass a non-soil fumigation category exam for initial certific ation in the category. They already have the exam, so incur no cost to develop it due to Comm Cert-04.

The remaining 9 states, Puerto Rico, and Othe r do not offer or require non-soil fumigation category certification for commercial applicators, so must bear the full cost of developing exams as incremental cost under the potential requirement.

Jurisdictional action necessary to implement potential requirement:

 Develop category-specific exam or training ma terial within two year s of promulgation of final rule Assumptions:

 Jurisdictions not already in compliance will develop exams, except as noted under Step 3, below.

 It takes a Jr. Technician 250 hour s to develop either an exam or training materials for a category

 The opportunity cost of the responsible staff is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

 Development of materials is done once, with labor and cost spread over first two years

Table: Comm Cert-04; St ep 2; Jurisdictions; Cost per Jurisdiction to Develop Material s to Implement Potential Requirement; Develop Non-Soil Fumigation Category Exam

Action Wage ($/hour) Time (hours) Frequency Cost ($) Develop category exam 39.44 250 0.50 4,930 Total 4,930

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per jurisdiction for developing the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements meet or exceed the option are constrained to e qual the cost of the option.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The cost per jurisdiction of developing the exam for implementation of the potential requirement ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional cost of developing the exam

 The regional cost of the potential requirement (RC P ) is the total annual jurisdictional cost of developing the exam

 Each jurisdiction would develop one exam for the non-soil fumigation category, in the first two years following promulgation of the final rule, i.e., cost r,i, a P = RC P for each jurisdiction

 N Jur is the number of jurisdictions

Given the above: RC B = cost r,i, a B x N Jur RC P = cost r,i, a P x N Jur
Values are presented in the table below.

Table: Comm Cert-04; Jurisdictions; Step 3; Total Annual Baseline and Potential Requi rement Costs for Developing Non-Soil Fumigation Category Exam for Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P

($) N Jur RC B ($) RC P ($)41 states with nonsoil fumigation category and exam 0 0 41 0 0

Alaska n/a 1 n/a n/a n/a n/a California 0 4,930 1 0 4,930 Idaho 0 4,930 1 0 4,930 Kansas 0 4,930 1 0 4,930 Louisiana 0 4,930 1 0 4,930 Michigan 0 4,930 1 0 4,930 Montana n/a n/a n/a n/a n/a Tennessee 0 4,930 1 0 4,930 Vermont n/a n/a n/a n/a n/a Puerto Rico n/a n/a n/a n/a n/a Other n/a n/a n/a n/a n/a Total, U.S.
1 The "n/a" states currently do not have a non-soil fumigation cate gory, and based on the applicator number data and trends in recen t years (CPARD, 2013), EPA assumed that these states are not likely to create a non-soil fumigation category under the proposed rule.

Step 4 - Calculate the PV of Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions and develop exam and/or training materials in lin e with the proposed requirements. There would be no further costs. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ௉ ௧ୀଵ ∙ 1.97

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Regional Baseline Cost

 PV IC = Present Value of the Incremental Cost

 PV IC = PV RC P
– PV RC B

Table: Comm Cert-04; Juri sdictions; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1000) PV RC B ($1000) PV IC ($1000)41 states with nonsoil fumigation category and exam 0 0 0

Alaska n/a 1 n/a n/a California 10 0 10 Idaho 10 0 10 Kansas 10 0 10 Louisiana 10 0 10 Michigan 10 0 10 Montana n/a n/a n/a Tennessee 10 0 10*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Vermont n/a n/a n/a Puerto Rico n/a n/a n/a Other n/a n/a n/a
1 The "n/a" states currently do not have a non-soil fumigation cate gory, and based on the applicator number data and trends in recen t years (CPARD, 2013), EPA assumed that these states are not likely to create a non-soil fumigation category under the proposed rule.

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Comm Cert-04; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 58 0 58 U.S. (annualized value) 7 0 7

2.1.5.3 Comm Cert-04: Administer New Commercial Non-soil Fumigation Certification Exam

Step 1 - Calculate Baseline Costs

Jurisdictions that Require Certification in Non-soil Fumigation Category in the Baseline

Three (41) states require non-soil fumigation certif ication in the baseline. However, of these states, Colorado, Florida, South Carolina, & Sout h Dakota do not proctor their certification exam and thus will bear the procto ring cost under the proposed rule.

Assumptions:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Currently, these 41 states are in comp liance with Comm Cert-04, proctoring the certification exam in the baseline

 It takes a Jr. Technician 1 hour to proctor a group of 50 examinees

 Proctoring of certification exam is done every year for the 10-year horizon for the first time applicators

 The wage rate for a Junior Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Comm Cert-04; Step 1; Baseline Cost per Applicator to Proctor Commercial Non-soil Fumigation Category Certification Exam; Jurisd ictions Currently Requiring Non-soil Fumigation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) Proctor category exam 39.44 1 0.02 0.79 Total 0.79

Jurisdictions that do Not Require Certificat ion in Non-soil Fumigation Category in the Baseline

9 states (AK, CA, ID, KS, LA, MI, MT, TN, & VT), Puerto Rico, and Other do not require nonsoil fumigation certification in the baseline.

Table: Comm Cert-04; Step 1; Baseline Cost per Applicator to Proctor Commercial Non-soil fumigation Category Certification Exam; Jurisd ictions Currently Not Requiri ng Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no category certification requirement 39.44 0 0 0.00

Total 0.00

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm Cert-04; Step 2; Cost per Applicator to Proctor Commercia l Non-soil fumigation Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($) Proctor category exam 39.44 1 0.02 0.79 Total 0.79

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N 1st = number of “first time non-soil fumigati on applicators.” This applies to both:

o Commercial applicators who begin appl ying RUPs by non-soil fumigation for the first time in a given year, in jurisdictions that do not require certification in an non-soil fumigation category; and

o Commercial applicators who seek cer tification in the non-soil fumigation category for the first time in a given year, in states that currently require certification in the non-s oil fumigation category.

 N Xst = number of existing non-soil fumigation app licators. This applies only to existing non-soil fumigation applicators for jurisdic tions not currently requiring commercial certification in a non-soil fumigation category.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Comm Cert-04; Step 3; Total Annual Baseline and Potential Requi rement Costs for Proctoring Non-soil Fumigation Category Exam for Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i,1st P ($) cost r,i,Xst P ($) N 1st N Xst RC B ($) RC t=3 P ($) RC t>3 P ($)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Alabama 0.79 0.79 0 4 50 3 3 3 Alaska 0 0.79 0.79 n/a 1 n/a n/a n/a n/a Arizona 0.79 0.79 0 18 221 14 14 14 Arkansas 0.79 0.79 0 11 138 9 9 9 California 0 0.79 0.79 300 3,751 0 3,196 237 Colorado 0.79 0.79 0 9 107 0 7 7 Connecticut 0.79 0.79 0 1 19 1 1 1 Delaware 0.79 0.79 0 7 86 5 5 5 Florida 0.79 0.79 0 516 6,452 0 407 407 Georgia 0.79 0.79 0 23 285 18 18 18 Hawaii 0.79 0.79 0 19 233 15 15 15 Idaho 0 0.79 0.79 15 181 0 155 11 Illinois 0.79 0.79 0 18 224 14 14 14 Indiana 0.79 0.79 0 30 374 24 24 24 Iowa 0.79 0.79 0 48 602 38 38 38 Kansas 0 0.79 0.79 52 648 0 552 41 Kentucky 0.79 0.79 0 45 563 35 35 35 Louisiana 0 0.79 0.79 14 169 0 144 11 Maine 0.79 0.79 0 7 87 6 6 6 Maryland 0.79 0.79 0 111 1,387 88 88 88 Massachusetts 0.79 0.79 0 3 38 2 2 2 Michigan 0 0.79 0.79 25 307 0 262 19 Minnesota 0.79 0.79 0 26 328 21 21 21 Mississippi 0.79 0.79 0 5 63 4 4 4 Missouri 0.79 0.79 0 34 430 27 27 27 Montana 0 0.79 0.79 n/a n/a n/a n/a n/a Nebraska 0.79 0.79 0 37 463 29 29 29 Nevada 0.79 0.79 0 3 42 3 3 3 New Hampshire 0.79 0.79 0 1 8 1 1 1 New Jersey 0.79 0.79 0 10 126 8 8 8 New Mexico 0.79 0.79 0 5 63 4 4 4 New York 0.79 0.79 0 14 178 11 11 11 North Carolina 0.79 0.79 0 14 171 11 11 11 North Dakota 0.79 0.79 0 41 510 32 32 32 Ohio 0.79 0.79 0 27 331 21 21 21 Oklahoma 0.79 0.79 0 60 756 48 48 48 Oregon 0.79 0.79 0 14 181 11 11 11 Pennsylvania 0.79 0.79 0 40 495 31 31 31*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Rhode Island 0.79 0.79 0 1 10 1 1 1 South Carolina 0.79 0.79 0 15 185 0 12 12 South Dakota 0.79 0.79 0 17 219 0 14 14 Tennessee 0 0.79 0.79 24 298 0 254 19 Texas 0.79 0.79 0 84 1,045 66 66 66 Utah 0.79 0.79 0 9 111 7 95 7 Vermont 0 0.79 0.79 n/a n/a n/a n/a n/a Virginia 0.79 0.79 0 15 184 12 12 12 Washington 0.79 0.79 0 12 150 9 9 9 West Virginia 0.79 0.79 0 3 39 2 2 2 Wisconsin 0.79 0.79 0 15 194 12 12 12 Wyoming 0.79 0.79 0 3 43 3 3 3 Puerto Rico 0 0.79 0 n/a n/a n/a n/a n/a Other 0 0.79 0 n/a n/a n/a n/a n/a Total, U.S. 1,803 22,543 645 5,734
1 The "n/a" states currently do not have a non-soil fumigation cate gory, and based on the applicator number data and trends in recen t years (CPARD, 2013), EPA assumed that these states are not likely to create a non-soil fumigation category under the proposed rule.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing commercial non-soil fumigation applicators in states that newly impose the commercial non-s oil fumigation category must become certified, along with all new commercial non-soil fumigation applicators. In subsequent years, the additional cost of non-soil fumigation certificati on is borne only by new commercial applicators; costs would remain constant ther eafter. The PV of costs under the proposal, at a 3% discount rate, is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-tim e non-soil fumigation applic ators in the regions is assumed to be constant over time, ex isting non-soil fumigation applicators in jurisdictions without a category will only need to obtain certif ication once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Cert-0 4; Steps 4 & 5; Jurisdictional Present Values of Potentia l Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000)

Alabama 0.03 0.03 0.00 Alaska n/a 1 n/a n/a Arizona 0.12 0.12 0.00 Arkansas 0.08 0.08 0.00 California 4.40 0.00 4.40 Colorado 0.05 0.00 0.05 Connecticut 0.01 0.01 0.00 Delaware 0.05 0.05 0.00 Florida 2.77 0.00 2.77 Georgia 0.16 0.16 0.00 Hawaii 0.13 0.13 0.00 Idaho 0.21 0.00 0.21 Illinois 0.12 0.12 0.00 Indiana 0.21 0.21 0.00 Iowa 0.33 0.33 0.00 Kansas 0.76 0.00 0.76*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Kentucky 0.31 0.31 0.00 Louisiana 0.20 0.00 0.20 Maine 0.05 0.05 0.00 Maryland 0.77 0.77 0.00 Massachusetts 0.02 0.02 0.00 Michigan 0.36 0.00 0.36 Minnesota 0.18 0.18 0.00 Mississippi 0.04 0.04 0.00 Missouri 0.24 0.24 0.00 Montana n/a n/a n/a Nebraska 0.26 0.26 0.00 Nevada 0.02 0.02 0.00 New Hampshire 0.00 0.00 0.00 New Jersey 0.07 0.07 0.00 New Mexico 0.04 0.04 0.00 New York 0.10 0.10 0.00 North Carolina 0.09 0.09 0.00 North Dakota 0.28 0.28 0.00 Ohio 0.18 0.18 0.00 Oklahoma 0.42 0.42 0.00 Oregon 0.10 0.10 0.00 Pennsylvania 0.27 0.27 0.00 Rhode Island 0.01 0.01 0.00 South Carolina 0.08 0.00 0.08 South Dakota 0.09 0.00 0.09 Tennessee 0.35 0.00 0.35 Texas 0.58 0.58 0.00 Utah 0.06 0.06 0.00 Vermont n/a n/a n/a Virginia 0.10 0.10 0.00 Washington 0.08 0.08 0.00 West Virginia 0.02 0.02 0.00 Wisconsin 0.11 0.11 0.00 Wyoming 0.02 0.02 0.00 Puerto Rico n/a n/a n/a Other n/a n/a n/a*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

1 The "n/a" states currently do not have a non-soil fumigation cate gory, and based on the applicator number data and trends in recen t years (CPARD, 2013), EPA assumed that these states are not likely to create a non-soil fumigation category under the proposed rule.

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Comm Cert-04; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 15 6 9 U.S. (annualized value) 1.7 0.6 1.1



### 2.2 Private Applicators

2.2.1 Private Aerial Applications

Step 1 - Calculate Baseline Costs per First-Time Aerial Category Certification by Private Applicator
Only one state (Wisconsin) currently offers aeria l category certification for private applicators. The other 49 states and Puerto Rico do not requ ire or offer an aerial category certification for private applicators. Private applicators in th ose states who apply RUPs aerially have zero baseline cost, and would bear the full impact of the potential requirement as incremental cost. Wisconsin requires private applicators to pass an aerial category exam for certification in the category. Aerial category certifi cation requirements, assumptions, and estimated baseline costs per first-time aerial category certification by a pr ivate applicator are below for these two groups of states.
Washington, DC does not have a pr ivate applicator certification program; it is excluded from this analysis.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Wisconsin Aerial Category Certification Requirement:

 Must pass aerial category exam Assumption:

 Wisconsin is assumed to be already in co mpliance with the potential aerial category certification requirements, with zero incrementa l cost. We assume that the standards for the exam, as well as the time and cost necessary to prepare for and take the exam, is equivalent to that of the proposed standard s for the new aerial category in Private Cert04, that is, the exam takes 1 hour to take pl us 3 hours of preparation time, or 4 hours total.

 Additionally, in recent year s (2008-2013), Wisconsin had no private applicators certified in the aerial category, and we assume that th is would continue to be so if the proposed rule becomes effective.

Baseline Cost per First-time or Existing Priv ate Aerial Applicator (If any existed) – Wisconsin

Action Wage ($) Time (hours) Frequency / probability (per new private, per year) Cost ($) Aerial Category Certification 51.96 4 1 207.84 Total 207.84

49 States, Puerto Rico, and Other Aerial Category Certification Requirement:

 No requirement Assumption:

 These 49 states, Puerto Rico, and “Other,” do not require or offer an aerial category certification for commercial a pplicators. Although some commercial applicators apply RUPs aerially in these jurisdictions, there is no certification action, so the baseline cost is

zero.
Baseline Cost per First-time or Exis ting Private Aerial Applicator – 49 States, Puerto Rico, and Other

Action Wage ($) Time (hours) Frequency / probability (per new private, per year) Cost ($) Aerial Category Certification 51.96 0 0 0

2.2.1.1 Private Cert-04: New Private Aerial Ce rtification Category, Exam or 4-hour Training

Step 2 - Calculate Costs of Potential Requir ement per First-Time Aerial Category Certification by Private Applicator, Exam or 4-hour Training (Private Cert-04)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

In jurisdictions currently without an aerial certification cat egory, there are some private applicators who apply RUPs aeriall y (and legally). Of these, some have been applying RUPs aerially for more than a year. Though not certifie d in the aerial category, we will refer to these as “existing aerial applicators.” Also in those states, each year some private applicators start applying RUPs aerially for the first time, referre d to here as “first-time aerial applicators.”
Since Wisconsin (the only jurisdiction with the ae rial category) has had no private applicators initially certified in the aerial category in re cent years (and none curr ently certified in the category), EPA assumes this will continue. If Wisconsin did have any private applicators become initially certified in the aerial category in the future, they would be included among the “first-time aerial applicators” that would have certification costs (and in cluded in the definition, above). However, because no new aerial category certifications are antic ipated in Wisconsin, there are no costs incurred there, now or in the future, so Wisconsin applicators are not included in the definition.
Aerial category certification, potential requirement:

 Pass aerial category exam, or take 4 hour training. Definitions:

 Existing aerial applicators: Private applicat ors who have been applying RUPs aerially for more than one year, in states that do not require certification in an aerial category.

 First-time aerial applicators: Private applicat ors who begin applying RUPs aerially for the first time in a given year, in states th at do not require certif ication in an aerial category. Assumptions:

 Those taking the aerial category exam or training are already private applicators.

 For first-time aerial applicators, the exam take s 1 hour to take plus 3 hours of preparation time, or 4 hours total.

 For existing aerial applicators, the exam takes 1 hour to take plus 2 hours of preparation time, or 3 hours total. Existi ng aerial applicators are assumed to take less time to prepare since they have already acquired knowledge and experience in aerial application.

 The wage rate for private applicat ors is $51.96 [insert source and year]

Table: Private Cert-04; Applicators; Step 2; Cost of Potential Requirement per “First-time Aerial Applicator” for Initially Certifying in Aerial Category

Action Wage ($/hour) Time (hours) Frequency Cost ($) Prepare and take aerial category exam 51.96 4 1 207.84*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Cert-04; Applicators; Step 2; Cost of Potential Requirement per “Existing Aerial Applicator” for Initially Certifying in Aerial Category

Action Wage ($/hour) Time (hours) Frequency Cost ($) Prepare and take aerial category exam 51.96 3 1 155.88

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 Only Wisconsin requires private certification for aerial applications. However, no private applicators have been certif ied in the aerial category, and we assume that this would continue to be so if the propos ed rule becomes effective.

 The baseline unit cost per private applicator initially certifying in the aerial category ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost-savings, the baseline cost in jurisdictions whose requirements m eet or exceed the option are constrained to equal the cost of the option.

 The cost per first-time aerial applicator of the potential requirement ( cost r,i,1st P ) is the cost under the potential requirement per private appl icator initially certi fying in the aerial category, presented in Step 2.

 The cost per existing aerial applic ator of the potential requirement ( cost r,i,Xst P ) is the cost under the potential requirement per existing aerial applicator, in jurisdictions not currently requiring commercial cer tification in an aerial category.

 N 1st = number of “first time aerial applicators.” This applies to first-time aerial applicators, as defined under Step 2, for jurisdictions not currently requiring private certification in an aerial category.

 N Xst = number of “existing aerial ap plicators.” This applies to existing aerial applicators, as defined under Step 2, for jurisdictions not currently requiring private certification in an aerial category.

 There are no data on the number of existing or first-time aerial applicators in jurisdictions that do not currently require aerial category certification. EPA assumes that there is one private aerial applicator for every 100 comme rcial aerial applicators. See Chapter 3.3.3.

 In Wisconsin, state data on the number of comme rcial applicators who are certified in the aerial category (indicating 0) , are obtained from the CPARD database (see Chapter 3, Section 3.3)

 The baseline regional cost (RC B ) is the current total annua l regional cost for initial certification of private applic ators in the aerial category.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for initial certification in th e aerial category under th e potential requirement.

 Existing aerial applicators, in jurisdicti ons not currently requ iring aerial category certification, would all become certified in the aerial category one time only, in year three, when the rule would e ssentially become effective.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The same number of first-time aerial applicator s, in states not curre ntly requiring aerial category certification, would become certified in the aerial category annually, starting in year three.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Private Cert-04; Applicators; Step 3; Total Annual Regional Baseline and Potential Requirement Costs for Certification of Private A pplicators in the Aerial Category

Region cost r,i, a B cost r,i,1st P

cost r,i,Xst P N 1st N Xst RC B RC t=3 P RC t>3 P
($) ($) ($) ($) ($) ($) Alabama 0 208 156 0 0 0 0 0 Alaska 0 208 156 0 0 0 0 0 Arizona 0 208 156 0 0 0 0 0 Arkansas 0 208 156 0 2 0 362 50 California 0 208 156 0 4 0 723 100 Colorado 0 208 156 0 1 0 181 25 Connecticut 0 208 156 0 0 0 0 0 Delaware 0 208 156 0 0 0 0 0 Florida 0 208 156 0 3 0 542 75 Georgia 0 208 156 0 2 0 362 50 Hawaii 0 208 156 0 0 0 0 0 Idaho 0 208 156 0 2 0 362 50 Illinois 0 208 156 0 2 0 362 50 Indiana 0 208 156 0 2 0 362 50 Iowa 0 208 156 1 7 0 1,266 175 Kansas 0 208 156 0 3 0 542 75 Kentucky 0 208 156 0 0 0 0 0 Louisiana 0 208 156 0 3 0 542 75 Maine 0 208 156 0 0 0 0 0 Maryland 0 208 156 0 0 0 0 0 Massachusetts 0 208 156 0 0 0 0 0 Michigan 0 208 156 0 0 0 0 0 Minnesota 0 208 156 0 3 0 542 75*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Mississippi 0 208 156 0 2 0 362 50 Missouri 0 208 156 0 2 0 362 50 Montana 0 208 156 0 0 0 0 0 Nebraska 0 208 156 1 5 0 904 125 Nevada 0 208 156 0 0 0 0 0 New Hampshire 0 208 156 0 0 0 0 0 New Jersey 0 208 156 0 0 0 0 0 New Mexico 0 208 156 0 0 0 0 0 New York 0 208 156 0 0 0 0 0 North Carolina 0 208 156 0 1 0 181 25 North Dakota 0 208 156 0 3 0 542 75 Ohio 0 208 156 0 0 0 0 0 Oklahoma 0 208 156 0 4 0 723 100 Oregon 0 208 15 6 0 2 0 362 50 Pennsylvania 0 208 156 0 0 0 0 0 Rhode Island 0 208 15 6 0 0 0 0 0 South Carolina 0 208 156 0 0 0 0 0 South Dakota 0 208 156 0 3 0 542 75 Tennessee 0 208 156 0 0 0 0 0 Texas 0 208 156 1 5 0 904 125 Utah 0 208 156 0 0 0 0 0 Vermont 0 208 156 0 0 0 0 0 Virginia 0 208 156 0 0 0 0 0 Washington 0 208 156 0 4 0 723 100 West Virginia 0 208 156 0 0 0 0 0 Wisconsin 208 208 15 6 0 0 0 0 0 Wyoming 0 208 156 0 0 0 0 0 Puerto Rico 0 208 156 0 0 0 0 0 Other 0 208 156 0 0 0 0 0 Total, US 8 65 0 11,753

Step 4 - Calculate the PV of Costs
Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing private aerial applicator s in states that newly impose the private aerial category must become certified, along with al l new private aerial applicators. In subsequent year s, the additional cost of aerial certification is borne only by new private applicators; costs would remain constant thereafter. Th e PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 In this case, while the number of first-time aer ial applicators in the regions is assumed to be constant over time, existing aerial applicat ors in jurisdictions without a category will only need to obtain certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Cost of the Potential requirement

 PV RC B = Present Value of the Regional Cost of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV RC P
– PV RC B

Table: Private Cert-04; Applicators; Steps 4 & 5 Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Wisconsin 0 0 0 49 states, Puerto Rico, and Other 21 0 21

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Incremental cost per 1 st time and existing aerial applicat or = NIC (U.S., annualized value) ÷ (sum of N 1st time + N Exist for all regions)

 3% discount rate used for PV and annualized value
Table: Private Cert-04; Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 21 0 21 U.S. (annualized value) 2 0 2 Incremental cost per private aerial applicator 0.032

State Costs, Developing/Adapti ng Training and Exam Material

The options analyzed here address the requireme nts for certification of private applicators in application method-specific categories as they apply to the developmen t/adaptation of state training and exam material.

The baseline (Step 1) is the same for Private Cert-04, -05, -06, -07, -10, and -11, and is shown once below, followed by Steps 2-6 for each pote ntial requirement. For general fumigation (Private Cert-08 and -09), no juri sdiction requires certification in this category in the baseline, thus the baseline cost is zero for general fumigation.

Step 1 - Calculate Baseline Costs

Although there are currently no federa l private applicator certifica tion categories, some states do require certification in one or more of the cat egories among those considered in the potential requirements below. For private certification ca tegories considered as a potential requirements (aerial, chemigation, fumigation (general, or separate soil an d non-soil fumigation), there are different jurisdictions that curr ently require each. Jurisdictions that do not require a particular category have zero baseline cost fo r that category. Juri sdictions that require a given category in the baseline are assumed to be in compliance, an d have costs of training or exam development that are the same for each category and equal to or greater than that of the proposed requirement.

Jurisdictions that Require Certification in a Given Category in the Baseline

Assumptions:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 These jurisdictions are in compliance with a given category requirement, and already have exams and/or trai ning materials developed

 It takes a Jr. Technician 250 hour s to develop either an exam or training materials for a category

 EPA assumes all jurisdicti ons will develop exams

 Development of materials is done once, w ith labor and cost spread over two years

 The wage rate for a Junior Technician is $39.44 [insert source]

Table: Private Cert-04 through -11; Step 1; Jurisdictions; Baseline Cost per Jurisdiction to Develo p Private Category C ertification Exam; Jurisdictions Currently Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) Develop category exam 39.44 250 0.50 4,930 Total 4,930

Jurisdictions that do Not Require Certificat ion in a Given Category in the Baseline

Jurisdictions that do not require a particular category have zero ba seline cost for that category.

Table: Private Cert-04 through -11; Step 1; Jurisdictions; Baseline Cost per Jurisdiction to Develo p Private Category C ertification Exam; Jurisdictions Currently Not Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no category certification requirement 39.44 0 0 0.00

Total 0.00

2.2.1.2 Private Cert-04: Develop New Private Ae rial Category Exam or 4-hour Training

EPA assumes that the cost of developing a 4-hou r or 8-hour training is the same. EPA further assumes that the cost of developing a training of various length or an exam is the same. Since the only difference between Privat e Cert-04 and Private Cert-05 is the requirement for 4-hour, or 8-hour training, respectively, (both have the exam option) the analysis below applies equally to both potential requirements, and is presented only once here.

Step 2 - Calculate Costs per Jurisdiction of Potential Requirement

Only one state (WI) requires aerial category certif ication in order for private applicators to apply RUPs aerially. WI requires priv ate applicators to pa ss an aerial categor y exam for initial*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

certification in the category. They already have the exam, so incur no cost to develop it due to Private Cert-04 or -05.

The remaining 49 states, Puerto Rico, and Ot her do not offer or require aerial category certification for private applicat ors, so must bear the full cost of developing exams.

Jurisdictional action necessary to implement potential requirement:

 Develop category-specific exam or training ma terial within two year s of promulgation of final rule Assumptions:

 It takes a Jr. Technician 250 hour s to develop either an exam or training materials for a category

 The opportunity cost of the responsible staff is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

 EPA assumes all jurisdicti ons will develop exams

 Development of materials is done once, with labor and cost spread over first two years

Table: Private Cert-04; Step 2; Jurisdictions; Cost per Jurisdiction to Develop Material s to Implement Potential Requirement; Develop Aerial Category Exam

Action Wage ($/hour) Time (hours) Frequency Cost ($) Develop category exam 39.44 250 0.50 4,930 Total 4,930

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per jurisdiction for developing the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements meet or exceed the option are constrained to e qual the cost of the option.

 The cost per jurisdiction of developing the exam for implementation of the potential requirement ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional cost of developing the exam

 The regional cost of the potential requirement (RC P ) is the total annual jurisdictional cost of developing the exam

 Each jurisdiction would develop one exam for the aerial category, in the first two years following promulgation of the final rule, i.e., cost r,i, a P = RC P for each jurisdiction

 N Jur is the number of jurisdictions

Given the above:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

RC B = cost r,i, a B x N Jur RC P = cost r,i, a P x N Jur
Values are presented in the table below.

Table: Private Cert-04; Jurisdictions; Step 3; Total Annual Baseline and Potential Requireme nt Costs for Developing Aerial Category Exam for Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P

($) N Jur RC B ($) RC P ($) Wisconsin - only jurisdiction with existing exam 0 4,930 1 0 0

Alabama 0 4,930 1 0 0 Alaska 0 4,930 1 0 0 Arizona 0 4,930 1 0 0 Arkansas 0 4,930 1 0 4,930 California 0 4,930 1 0 4,930 Colorado 0 4,930 1 0 4,930 Connecticut 0 4,930 1 0 0 Delaware 0 4,930 1 0 0 Florida 0 4,930 1 0 4,930 Georgia 0 4,930 1 0 4,930 Hawaii 0 4,930 1 0 0 Idaho 0 4,930 1 0 4,930 Illinois 0 4,930 1 0 4,930 Indiana 0 4,930 1 0 4,930 Iowa 0 4,930 1 0 4,930 Kansas 0 4,930 1 0 4,930 Kentucky 0 4,930 1 0 0 Louisiana 0 4,930 1 0 4,930 Maine 0 4,930 1 0 0 Maryland 0 4,930 1 0 0 Massachusetts 0 4,930 1 0 0 Michigan 0 4,930 1 0 0 Minnesota 0 4,930 1 0 4,930 Mississippi 0 4,930 1 0 4,930 Missouri 0 4,930 1 0 4,930 Montana 0 4,930 1 0 0 Nebraska 0 4,930 1 0 4,930 Nevada 0 4,930 1 0 0 New Hampshire 0 4,930 1 0 0 New Jersey 0 4,930 1 0 0 New Mexico 0 4,930 1 0 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

New York 0 4,930 1 0 0 North Carolina 0 4,930 1 0 4,930 North Dakota 0 4,930 1 0 4,930 Ohio 0 4,930 1 0 0 Oklahoma 0 4,930 1 0 4,930 Oregon 0 4,930 1 0 4,930 Pennsylvania 0 4,930 1 0 0 Rhode Island 0 4,930 1 0 0 South Carolina 0 4,930 1 0 0 South Dakota 0 4,930 1 0 4,930 Tennessee 0 4,930 1 0 0 Texas 0 4,930 1 0 4,930 Utah 0 4,930 1 0 0 Vermont 0 4,930 1 0 0 Virginia 0 4,930 1 0 0 Washington 0 4,930 1 0 4,930 West Virginia 0 4,930 1 0 0 Wyoming 0 4,930 1 0 0 Puerto Rico 0 4,930 1 0 0 Other 0 4,930 1 0 0 Total, U.S. 52 0 108,460

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions and develop exam and/or training materials in lin e with the proposed requirements. There would be no further costs. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ௉ ௧ୀଵ ∙ 1.97*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Regional Baseline Cost

 PV IC = Present Value of the Incremental Cost

 PV IC = PV RC P
– PV RC B

Table: Private Cert-04; Ju risdictions; Steps 4 & 5; Jurisdictional Present Values of Potentia l Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Wisconsin - only jurisdiction with existing

exam 0 0 0

Alabama 0 0 0 Alaska 0 0 0 Arizona 0 0 0 Arkansas 10 0 10 California 10 0 10 Colorado 10 0 10 Connecticut 0 0 0 Delaware 0 0 0 Florida 10 0 10 Georgia 10 0 10 Hawaii 0 0 0 Idaho 10 0 10 Illinois 10 0 10 Indiana 10 0 10 Iowa 10 0 10 Kansas 10 0 10 Kentucky 0 0 0 Louisiana 10 0 10 Maine 0 0 0 Maryland 0 0 0 Massachusetts 0 0 0 Michigan 0 0 0 Minnesota 10 0 10 Mississippi 10 0 10 Missouri 10 0 10 Montana 0 0 0 Nebraska 10 0 10 Nevada 0 0 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

New Hampshire 0 0 0 New Jersey 0 0 0 New Mexico 0 0 0 New York 0 0 0 North Carolina 10 0 10 North Dakota 10 0 10 Ohio 0 0 0 Oklahoma 10 0 10 Oregon 10 0 10 Pennsylvania 0 0 0 Rhode Island 0 0 0 South Carolina 0 0 0 South Dakota 10 0 10 Tennessee 0 0 0 Texas 10 0 10 Utah 0 0 0 Vermont 0 0 0 Virginia 0 0 0 Washington 10 0 10 West Virginia 0 0 0 Wyoming 0 0 0 Puerto Rico 0 0 0 Other 0 0 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Private Cert-04; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 214 0 214 U.S. (annualized value) 24 0 24*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

State’s Proctoring Costs: Privat e Applicator Application Method- Specific Category Certification
Although there are currently no federal private applicator certifica tion categories based on application method, some states do require certification in one or more of the application method-specific categories among those considered in the potential requir ements below. For private certification categories considered as pote ntial requirements (aerial, chemigation, general fumigation, soil fumigation, and non-soil fumigation) , there are different jurisdictions that currently require each. Jurisdicti ons that do not require a particular category have zero baseline cost for that category. Jurisdicti ons that require a given category in the baseline are assumed to be in compliance, and have the state costs of exam administration that are at least equal to that of the proposed requirement.
For private applicators, the jurisdictions with one or more of the application method-specific categories in the baseline require certification by passing a written exam. The proposed rule, however, allows certification in these categories by either passing a written exam or completing a training program. However, EPA assumes that all jurisdictions with one or more of the application method-specific categories will cont inue their baseline pr actice and certify their private applicators by a written ex am under the new rule as well. For the jurisdictions that do not have the application method-specific categories in the baseline, there is no information on how (i.e., by exam or training) each jurisdiction woul d certify their private applicators under the proposed rule, and therefore, EPA assumes that th ey will also certify their private applicators by exam under the proposed rule.

2.2.1.3 Private Cert-04: Administer New Private Ae rial Category Exam or 4-hour Training

Step 1 - Calculate Baseline Costs

Jurisdictions that Require Certificatio n in Aerial Category in the Baseline

Wisconsin is the only state that requires aerial certification in the baseline.

Assumptions:

 Currently, Wisconsin is in compliance with Pr ivate Cert-04, proctoring the certification exam in the baseline

 It takes a Jr. Technician 1 hour to proctor a group of 50 examinees

 Proctoring of certification exam is done every year for the 10-year horizon for the first time applicators

 The wage rate for a Junior Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Private Cert-04; Step 1; Baseline Cost per Applicator to Proctor Pr ivate Aerial Category Certification Exam; 32 States Currently Requiring A erial Category Certification

Action Wage Time Frequency Cost*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

($/hour) (hours) ($) Proctor category exam 39.44 1 0.02 0.79 Total 0.79

Jurisdictions that do Not Require Certific ation in Aerial Category in the Baseline

The remaining 49 states, Puerto Rico, and Other do not require aerial certifica tion in the baseline.

Table: Private Cert-04; Step 1; Baseline Cost per Applicator to Proctor Pr ivate Aerial Category Certification Exam; Jurisdictions Currently Not Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no category certification requirement 39.44 0 0 0.00

Total 0.00

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Private Cert-04; Step 2; Cost per Applicator to Proctor Pri vate Aerial Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($) Proctor category exam 39.44 1 0.02 0.79 Total 0.79

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 N 1st = number of “first time aerial app licators.” This applies to both:

o Private applicators who begin applying RUPs aerially for the first time in a given year, in jurisdictions that do not require ce rtification in an ae rial category; and

o Private applicators who seek certification in the aerial category for the first time in a given year, in states that currently re quire certification in the aerial category.

 N Xst = number of existing aerial applicators. This applies only to existing aerial applicators for jurisdictions not currently re quiring private certification in an aerial category.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Private Cert-04; Step 3; Total Annual Baseline and Potential Requireme nt Costs for Proctoring Aerial Category Exam for Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i,1st P ($) cost r,i,Xst P ($) N 1st N Xst RC B ($) RC t=3 P ($) RC t>3 P ($)

Alabama 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Alaska 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Arizona 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Arkansas 0 0.79 0.79 0.2 2.0 0 1.8 0.2 California 0 0.79 0.79 0.5 4.0 0 3.5 0.4 Colorado 0 0.79 0.79 0.1 1.0 0 0.9 0.1 Connecticut 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Delaware 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Florida 0 0.79 0.79 0.4 3.0 0 2.7 0.3 Georgia 0 0.79 0.79 0.2 2.0 0 1.8 0.2 Hawaii 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Idaho 0 0.79 0.79 0.2 2.0 0 1.8 0.2 Illinois 0 0.79 0.79 0.2 2.0 0 1.8 0.2 Indiana 0 0.79 0.79 0.2 2.0 0 1.8 0.2 Iowa 0 0.79 0.79 0.8 7.0 0 6.2 0.7 Kansas 0 0.79 0.79 0.4 3.0 0 2.7 0.3 Kentucky 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Louisiana 0 0.79 0.79 0.4 3.0 0 2.7 0.3 Maine 0 0.79 0.79 0.0 0.0 0 0.0 0.0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Maryland 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Massachusetts 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Michigan 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Minnesota 0 0.79 0.79 0.4 3.0 0 2.7 0.3 Mississippi 0 0.79 0.79 0.2 2.0 0 1.8 0.2 Missouri 0 0.79 0.79 0.2 2.0 0 1.8 0.2 Montana 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Nebraska 0 0.79 0.79 0.6 5.0 0 4.4 0.5 Nevada 0 0.79 0.79 0.0 0.0 0 0.0 0.0 New Hampshire 0 0.79 0.79 0.0 0.0 0 0.0 0.0 New Jersey 0 0.79 0.79 0.0 0.0 0 0.0 0.0 New Mexico 0 0.79 0.79 0.0 0.0 0 0.0 0.0 New York 0 0.79 0.79 0.0 0.0 0 0.0 0.0 North Carolina 0 0.79 0.79 0.1 1.0 0 0.9 0.1 North Dakota 0 0.79 0.79 0.4 3.0 0 2.7 0.3 Ohio 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Oklahoma 0 0.79 0.79 0.5 4.0 0 3.5 0.4 Oregon 0 0.79 0.79 0.2 2.0 0 1.8 0.2 Pennsylvania 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Rhode Island 0 0.79 0.79 0.0 0.0 0 0.0 0.0 South Carolina 0 0.79 0.79 0.0 0.0 0 0.0 0.0 South Dakota 0 0.79 0.79 0.4 3.0 0 2.7 0.3 Tennessee 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Texas 0 0.79 0.79 0.6 5.0 0 4.4 0.5 Utah 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Vermont 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Virginia 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Washington 0 0.79 0.79 0.5 4.0 0 3.5 0.4 West Virginia 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Wisconsin 0.79 0.79 0.00 0.0 0.0 0 0.0 0.0 Wyoming 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Puerto Rico 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Other 0 0.79 0.79 0.0 0.0 0 0.0 0.0 Total, U.S. 8 65 0 57

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing private aerial applicator s in states that newly impose the private aerial category must become certified, along with al l new private aerial applicators. In subsequent year s, the additional cost of aerial certification is borne only by new private applicators; costs would remain constant thereafter. Th e PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-time aer ial applicators in the regions is assumed to be constant over time, existing aerial applicat ors in jurisdictions without a category will only need to obtain certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Cert-04; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000)

Alabama 0.000 0.000 0.000 Alaska 0.000 0.000 0.000 Arizona 0.000 0.000 0.000*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Arkansas 0.003 0.000 0.003 California 0.006 0.000 0.006 Colorado 0.001 0.000 0.001 Connecticut 0.000 0.000 0.000 Delaware 0.000 0.000 0.000 Florida 0.004 0.000 0.004 Georgia 0.003 0.000 0.003 Hawaii 0.000 0.000 0.000 Idaho 0.003 0.000 0.003 Illinois 0.003 0.000 0.003 Indiana 0.003 0.000 0.003 Iowa 0.010 0.000 0.010 Kansas 0.004 0.000 0.004 Kentucky 0.000 0.000 0.000 Louisiana 0.004 0.000 0.004 Maine 0.000 0.000 0.000 Maryland 0.000 0.000 0.000 Massachusetts 0.000 0.000 0.000 Michigan 0.000 0.000 0.000 Minnesota 0.004 0.000 0.004 Mississippi 0.003 0.000 0.003 Missouri 0.003 0.000 0.003 Montana 0.000 0.000 0.000 Nebraska 0.007 0.000 0.007 Nevada 0.000 0.000 0.000 New Hampshire 0.000 0.000 0.000 New Jersey 0.000 0.000 0.000 New Mexico 0.000 0.000 0.000 New York 0.000 0.000 0.000 North Carolina 0.001 0.000 0.001 North Dakota 0.004 0.000 0.004 Ohio 0.000 0.000 0.000 Oklahoma 0.006 0.000 0.006 Oregon 0.003 0.000 0.003 Pennsylvania 0.000 0.000 0.000 Rhode Island 0.000 0.000 0.000 South Carolina 0.000 0.000 0.000 South Dakota 0.004 0.000 0.004 Tennessee 0.000 0.000 0.000*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Texas 0.007 0.000 0.007 Utah 0.000 0.000 0.000 Vermont 0.000 0.000 0.000 Virginia 0.000 0.000 0.000 Washington 0.006 0.000 0.006 West Virginia 0.000 0.000 0.000 Wisconsin 0.000 0.000 0.000 Wyoming 0.000 0.000 0.000 Puerto Rico 0.000 0.000 0.000 Other 0.000 0.000 0.000

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Private cert-04; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 0.09 0 0.09 U.S. (annualized value) 0.01 0 0.01

2.2.1.4 Private Cert-05: New Private Aerial Ce rtification Category, Exam or 8-hour Training

Step 2 - Calculate Costs of Potential Requir ement per First-Time Aerial Category Certification by Private Applicator, Exam or 8-hour Training (Private Cert-05)
In jurisdictions currently without an aerial certification cat egory, there are some private applicators who apply RUPs aeriall y (and legally). Of these, some have been applying RUPs aerially for more than a year. Though not certifie d in the aerial category, we will refer to these*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

as “existing aerial applicators.” Also in those states, each year some private applicators start applying RUPs aerially for the first time, referre d to here as “first-time aerial applicators.”
Since Wisconsin (the only jurisdiction with the ae rial category) has had no private applicators initially certified in the aerial category in re cent years (and none curr ently certified in the category), EPA assumes this will continue. If Wisconsin did have any private applicators become initially certified in the aerial category in the future, they would be included among the “first-time aerial applicators” that would have certification costs (and in cluded in the definition, above). However, because no new aerial category certifications are antic ipated in Wisconsin, there are no costs incurred there, now or in the future, so Wisconsin applicators are not included in the definition.
Aerial category certification, potential requirement:

 Pass aerial category exam, or take 8 hour training. Definitions:

 Existing aerial applicators: Private applicat ors who have been applying RUPs aerially for more than one year, in states that do not require certification in an aerial category.

 First-time aerial applicators: Private applicat ors who begin applying RUPs aerially for the first time in a given year, in states th at do not require certifi cation in an aerial category. Assumptions:

 Those taking the aerial category exam or training are already private applicators.

 For first-time aerial applicators, the exam take s 1 hour to take plus 7 hours of preparation time, or 8 hours total.

 For existing aerial applicators, the exam takes 1 hour to take plus 5 hours of preparation time, or 6 hours total. Existi ng aerial applicators are assumed to take less time to prepare since they have already acquired knowledge and experience in aerial application.

 The wage rate for private applicat ors is $51.96 [insert source and year]

Table: Private Cert-05; Applicators; Step 2; Cost of Potential Requirement per “First-time Aerial Applicator” for Initially Certifying in Aerial Category

Action Wage ($/hour) Time (hours) Frequency Cost ($) Prepare and take aerial category exam 51.96 8 1 415.67

Table: Private Cert-05; Applicators; Step 2; Cost of Potential Requirement per “Existing Aerial Applicator” for Initially Certifying in Aerial Category

Action Wage ($/hour) Time (hours) Frequency Cost ($) Prepare and take aerial category exam 51.96 6 1 311.76

Step 3 – Estimate Regional Level Baseline and Compliance Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 Only Wisconsin requires private certification for aerial applications. However, no private applicators have been certif ied in the aerial category, and we assume that this would continue to be so if the propos ed rule becomes effective.

 The baseline unit cost per private applicator initially certifying in the aerial category ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost-savings, the baseline cost in jurisdictions whose requirements m eet or exceed the option are constrained to equal the cost of the option.

 The cost per first-time aerial applicator of the potential requirement ( cost r,i,1st P ) is the cost under the potential requirement per private appl icator initially certi fying in the aerial category, presented in Step 2.

 The cost per existing aerial applic ator of the potential requirement ( cost r,i,Xst P ) is the cost under the potential requirement per existing aerial applicator, in jurisdictions not currently requiring commercial cer tification in an aerial category.

 N 1st = number of “first time aerial applicators.” This applies to first-time aerial applicators, as defined under Step 2, for jurisdictions not currently requiring private certification in an aerial category.

 N Xst = number of “existing aerial ap plicators.” This applies to existing aerial applicators, as defined under Step 2, for jurisdictions not currently requiring private certification in an aerial category.

 There are no data on the number of existing or first-time aerial applicators in jurisdictions that do not currently require aerial category certification. EPA assumes that there is one private aerial applicator for every 100 comme rcial aerial applicators. See Chapter 3.3.3.

 In Wisconsin, state data on the number of comme rcial applicators who are certified in the aerial category (indicating 0) , are obtained from the CPARD database (see Chapter 3, Section 3.3)

 The baseline regional cost (RC B ) is the current total annua l regional cost for initial certification of private applic ators in the aerial category.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for initial certification in th e aerial category under th e potential requirement.

 Existing aerial applicators, in jurisdicti ons not currently requ iring aerial category certification, would all become certified in the aerial category one time only, in year three, when the rule would e ssentially become effective.

 The same number of first-time aerial applicator s, in states not curre ntly requiring aerial category certification, would become certified in the aerial category annually, starting in year three.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Cert-05; Applicators; Step 3; Total Annual Regional Baseline and Potential Requirement Costs for Certification of Private A pplicators in the Aerial Category

Region cost r,i, a B cost r,i,1st P cost r,i,Xst P N 1st N Xst RC B RC t=3 P RC t>3 P ($) ($) ($) ($) ($) ($)
Alabama 0 416 312 0 0 0 0 0 Alaska 0 416 312 0 0 0 0 0 Arizona 0 416 312 0 0 0 0 0 Arkansas 0 416 312 0 2 0 723 100 California 0 416 312 0 4 0 1,447 200 Colorado 0 416 312 0 1 0 362 50 Connecticut 0 416 312 0 0 0 0 0 Delaware 0 416 312 0 0 0 0 0 Florida 0 416 312 0 3 0 1,085 150 Georgia 0 416 312 0 2 0 723 100 Hawaii 0 416 312 0 0 0 0 0 Idaho 0 416 312 0 2 0 723 100 Illinois 0 416 312 0 2 0 723 100 Indiana 0 416 312 0 2 0 723 100 Iowa 0 416 312 1 7 0 2,531 349 Kansas 0 416 312 0 3 0 1,085 150 Kentucky 0 416 312 0 0 0 0 0 Louisiana 0 416 312 0 3 0 1,085 150 Maine 0 416 312 0 0 0 0 0 Maryland 0 416 312 0 0 0 0 0 Massachusetts 0 416 312 0 0 0 0 0 Michigan 0 416 312 0 0 0 0 0 Minnesota 0 416 312 0 3 0 1,085 150 Mississippi 0 416 312 0 2 0 723 100 Missouri 0 416 312 0 2 0 723 100 Montana 0 416 312 0 0 0 0 0 Nebraska 0 416 312 1 5 0 1,808 249 Nevada 0 416 312 0 0 0 0 0 New Hampshire 0 416 312 0 0 0 0 0 New Jersey 0 416 312 0 0 0 0 0 New Mexico 0 416 312 0 0 0 0 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

New York 0 416 312 0 0 0 0 0 North Carolina 0 416 312 0 1 0 362 50 North Dakota 0 416 312 0 3 0 1,085 150 Ohio 0 416 312 0 0 0 0 0 Oklahoma 0 416 312 0 4 0 1,447 200 Oregon 0 416 312 0 2 0 723 100 Pennsylvania 0 416 312 0 0 0 0 0 Rhode Island 0 416 312 0 0 0 0 0 South Carolina 0 416 312 0 0 0 0 0 South Dakota 0 416 312 0 3 0 1,085 150 Tennessee 0 416 312 0 0 0 0 0 Texas 0 416 312 1 5 0 1,808 249 Utah 0 416 312 0 0 0 0 0 Vermont 0 416 312 0 0 0 0 0 Virginia 0 416 312 0 0 0 0 0 Washington 0 416 312 0 4 0 1,447 200 West Virginia 0 416 312 0 0 0 0 0 Wisconsin 208 416 312 0 0 0 0 0 Wyoming 0 416 312 0 0 0 0 0 Puerto Rico 0 416 312 0 0 0 0 0 Other 0 416 312 0 0 0 0 0 Total, US 8 65 0 23,506

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing private aerial applicator s in states that newly impose the private aerial category must become certified, along with all new private aerial applicators. In subsequent year s, the additional cost of aerial certification is borne only by new*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

private applicators; costs would remain constant thereafter. Th e PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 In this case, while the number of first-time aer ial applicators in the regions is assumed to be constant over time, existing aerial applicat ors in jurisdictions without a category will only need to obtain certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Cost of the Potential requirement

 PV RC B = Present Value of the Regional Cost of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV RC P
– PV RC B

Table: Private Cert-05; Applicators; Steps 4 & 5 Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Wisconsin 0 0 0 49 states, Puerto Rico, and Other 41 0 41

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Incremental cost per 1 st time and existing aerial applicat or = NIC (U.S., annualized value) ÷ (sum of N 1st time + N Exist for all regions)

 3% discount rate used for PV and annualized value*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Cert-05; Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 41 0 41 U.S. (annualized value) 5 0 5 Incremental cost per private aerial applicator 0.064

State Costs, Developing/Adapti ng Training and Exam Material

The options analyzed here address the requireme nts for certification of private applicators in application method-specific categories as they apply to the developmen t/adaptation of state training and exam material.

The baseline (Step 1) is the same for Private Cert-04, -05, -06, -07, -10, and -11, and is shown once below, followed by Steps 2-6 for each pote ntial requirement. For general fumigation (Private Cert-08 and -09), no juri sdiction requires certification in this category in the baseline, thus the baseline cost is zero for general fumigation.

Step 1 - Calculate Baseline Costs

Although there are currently no federa l private applicator certifica tion categories, some states do require certification in one or more of the cat egories among those considered in the potential requirements below. For private certification ca tegories considered as a potential requirements (aerial, chemigation, fumigation (general, or separate soil an d non-soil fumigation), there are different jurisdictions that curr ently require each. Jurisdictions that do not require a particular category have zero baseline cost fo r that category. Juri sdictions that require a given category in the baseline are assumed to be in compliance, an d have costs of training or exam development that are the same for each category and equal to or greater than that of the proposed requirement.

Jurisdictions that Require Certification in a Given Category in the Baseline

Assumptions:

 These jurisdictions are in compliance with a given category requirement, and already have exams and/or trai ning materials developed

 It takes a Jr. Technician 250 hour s to develop either an exam or training materials for a category

 EPA assumes all jurisdicti ons will develop exams

 Development of materials is done once, w ith labor and cost spread over two years

 The wage rate for a Junior Technician is $39.44 [insert source]

Table: Private Cert-04 through -11; Step 1; Jurisdictions;*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Baseline Cost per Jurisdiction to Develo p Private Category C ertification Exam; Jurisdictions Currently Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) Develop category exam 39.44 250 0.50 4,930 Total 4,930

Jurisdictions that do Not Require Certificat ion in a Given Category in the Baseline

Jurisdictions that do not require a particular category have zero ba seline cost for that category.

Table: Private Cert-04 through -11; Step 1; Jurisdictions; Baseline Cost per Jurisdiction to Develo p Private Category C ertification Exam; Jurisdictions Currently Not Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no category certification requirement 39.44 0 0 0.00

Total 0.00

2.2.1.5 Private Cert-05: Develop New Private Aeri al Category Exam or 8-hour training

Costs are identical to those for “Private Cert-04: Develop New Private Aeri al Category Exam or 4-hour training” in section 2.2.1.2.

2.2.1.6 Private Cert-05: Administer New Private Ae rial Category Exam or 8-hour Training
Proctoring costs for Private Cert -05 are identical to those for Private Cert-04 in section 2.2.1.3 because the exam taking time is the same (i.e., one hour) for a 4-hour or an 8-hour exam. Thus, it would take one hour of a Jr. Technician’s time to proctor either of these exams. A 4-hour exam will take a private applicat or 3 hours of preparation and 1 hour to take the exam, for a total of 4 hours, and an 8-hour exam would take a priv ate applicator 7 hours to prepare and 1 hour to take the exam, for a total of 8 hours.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

2.2.2 Private Chemigation Applications

Step 1 - Calculate Baseline Costs per First-Time Chemigation Category Certification by Private Applicator
Only five states currently offer chemigation cate gory certification for privat e applicators. These five states require private app licators to pass a chemigation cate gory exam for certification in the category. The other 45 states, Puerto Rico, a nd Other do not require or offer a chemigation category certification for private applicators. Private applicators in the latter group of jurisdictions who apply RUPs by chemigation have zero baseline cost, and would bear the full impact of the potential requirement as increm ental cost. Chemigation category certification requirements, assumptions, and estimated baseli ne costs per first-time chemigation category certification by a private applicator are below for these two groups of states.
Washington, DC does not have a pr ivate applicator certification program; it is excluded from this analysis.

5 states with private chemi gation certification category Chemigation Category Certification Requirement:

 Must pass chemigation category exam Assumption:

 Applicators in the 5 states are assumed to be already in compliance with the potential chemigation category certifica tion requirements, with zero in cremental cost. We assume that the standards for the exam, as well as th e time and cost necessa ry to prepare for and take the exam, is equivalent to that of the proposed standards for the new chemigation category in Private Cert-06, that is, the ex am takes 1 hour to take plus 3 hours of preparation time, or 4 hours total.

Baseline Cost per Initial Chemigation Categor y Certification by Private Applicator – 5 states

Action Wage ($) Time (hours) Frequency / probability (per new private, per year) Cost ($) Chemigation Category Certification 51.96 4 1 207.84

45 States, Puerto Rico, and Other Chemigation Category Certification Requirement:

 No category certification requirement Assumption:

 These 45 states, Puerto Rico, and “Other,” do not require or offer a chemigation category certification for private applicators. Alt hough some private applicators apply RUPs by chemigation in these jurisdictions, there is no certification action, so the baseline cost is

zero.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Baseline Cost per First-time or Existi ng Private Chemigation Applicator – 45 States, Puerto Rico, and Other

Action Wage ($) Time (hours) Frequency / probability (per new private, per year) Cost ($) Chemigation Category Certification 51.96 0 0 0

2.2.2.1 Private Cert-06: New Private Chemigatio n Category, Exam or 4-hour Training

Step 2 - Calculate Costs of Potential Requirement per First-Time Chemigation Category Certification by Private Applicator, Exam or 4-hour Training (Private Cert-06)
In jurisdictions currently without a chemigati on certification category, there are some private applicators who apply RUPs by chemigation (which is legal). Of these, some have been applying RUPs by chemigation for more than a year. Though not certifie d in the chemigation category, we will refer to these as “existing chemiga tion applicators.” Also in those states, each year some private applicators start applying RUPs by chemigation for the first time, referred to here as “first-time chemigation applicators.”
Since initial certification only occurs once, in the 5 states that requi re chemigation category certification, those applicators already certified in the chemigation category are not applicable to this potential requirement. They are certified chemigation applicators, not “existing chemigation applicators.” However, in these 5 states w ith the chemigation category, there are private applicators that seek certificati on in the chemigation category for the first time in a given year. They are considered here as an additional group of “first-time chem igation applicators.”
Chemigation category certificat ion, potential requirement:

 Pass chemigation category exam, or take 4 hour training. Definitions:

 Existing chemigation applicators: Private applicators who have been applying RUPs by chemigation for more than one year, in stat es that do not requir e certification in a chemigation category.

 First-time chemigation applicators:

o Private applicators who begin applying RU Ps by chemigation for the first time in a given year, in jurisdictions that do not require certification in a chemigation category; and

o Private applicators who seek certification in the chemigation category for the first time in a given year, in states that currently require certification in the chemigation category. Assumptions:

 Those taking the chemigation category exam or training are already private applicators.

 For first-time chemigation applicators, the exam takes 1 hour to take plus 3 hours of preparation time, or 4 hours total.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 For existing chemigation applic ators, the exam takes 1 hour to take plus 2 hours of preparation time, or 3 hours total. Existing chemigation applicators are assumed to take less time to prepare since they have al ready acquired knowledge and experience in chemigation application.

 The wage rate for private applicat ors is $51.96 [insert source and year]

Table: Private Cert-06; Applicators; Step 2; Cost of Potential Requirement per “First-time Chemigation Applicator” for Initially Certifying in Chemigation Category

Action Wage ($/hour) Time (hours) Frequency Cost ($) Prepare and take chemigation category exam 51.96 4 1 207.84

Table: Private Cert-06; Applicators; Step 2; Cost of Potential Requirement per “Existing Chemigation Applicator” for Initially Certifying in Chemigation Category

Action Wage ($/hour) Time (hours) Frequency Cost ($) Prepare and take chemigation category exam 51.96 3 1 155.88

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 Only 5 states require priv ate certification for chemig ation applications.

 The baseline unit cost per private applicat or initially certifying in the chemigation category ( cost r,i, a B ) is presented in Step 1. To avoi d the appearance of cost-savings, the baseline cost in jurisdictions whose re quirements meet or exceed the option are constrained to equal the cost of the option.

 The cost per first-time chemigation applicator of the potential requirement ( cost r,i,1st P ) is the cost under the potential re quirement per private applicator initially certifying in the chemigation category, in jurisdictions both with and without a current chemigation certification category, presented in Step 2.

 The cost per existing chemigation applic ator of the potenti al requirement ( cost r,i,Xst P ) is the cost under the potentia l requirement per existing ch emigation applicator, in jurisdictions not currently re quiring private certification in a chemigation category.

 N 1st = number of “first time chemigation ap plicators.” As defined under Step 2, this applies to both:

o Private applicators who begin applying RU Ps by chemigation for the first time in a given year, in jurisdictions that do not require certification in a chemigation category; and*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

o Private applicators who seek certification in the chemigation category for the first time in a given year, in states that currently require certification in the chemigation category.

 N Xst = number of “existing chemigation applic ators.” This applies only to existing chemigation applicators, as defined under St ep 2, for jurisdictions not currently requiring private certification in a chemigation category.

 There are no data on the numb er of existing or first-time chemigation applicators in jurisdictions that do not currently require chemigation category certification. EPA assumes that there is one private chemig ation applicator for every 100 commercial chemigation applicators. See Chapter 3.3.3.

 In the 5 states that currently offer the chem igation category, state data on the number of private applicators who are certified in the chemigation category, are obtained from the CPARD database (see Chapter 3, Section 3.3)

 The baseline regional cost (RC B ) is the current total annua l regional cost for initial certification of private applicator s in the chemigation category.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for initial certification in the chemigation cat egory under the potential requirement.

 Existing chemigation applicators, in jurisd ictions not currently requiring chemigation category certification, would all become certif ied in the chemigation category one time only, in year three, when the rule would essentially become effective.

 The same number of first-time chemigation applicators would become certified in the chemigation category annually, starting in y ear three. This applies to first-time chemigation applicators both in jurisdic tions not currently requiring chemigation category certification, as well as in the 5 states that do.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Private Cert-06; Applicators; Step 3; Total Annual Regional Baseline and Potential Requirement Costs for Certification of Private App licators in the Chemigation Category

Region cost r,i, a B cost r,i,1st P cost r,i,Xst P N 1st N Xst RC B RC t=3 P RC t>3 P
($) ($) ($) ($) ($) ($) Alabama 0 208 156 42 605 0 103,108 8,802 Alaska 0 208 156 n/a 1 n/a 0 0 0 Arizona 0 208 156 9 135 0 23,008 1,964 Arkansas 0 208 156 6 80 0 13,634 1,164 California 0 208 156 8 115 0 19,599 1,673 Colorado 0 208 156 5 68 0 11,589 989*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Connecticut 0 208 156 1 13 0 2,216 189 Delaware 0 208 156 5 69 0 11,759 1,004 Florida 0 208 156 12 173 0 29,484 2,517 Georgia 0 208 156 103 1,478 0 251,890 21,503 Hawaii 208 208 156 1 14 204 204 204 Idaho 208 208 156 74 1,053 15,320 15,320 15,320 Illinois 0 208 156 1 9 0 1,534 131 Indiana 0 208 156 1 15 0 2,556 218 Iowa 0 208 156 2 31 0 5,283 451 Kansas 0 208 156 2 24 0 4,090 349 Kentucky 0 208 156 2 28 0 4,772 407 Louisiana 0 208 156 6 80 0 13,634 1,164 Maine 0 208 156 1 15 0 2,556 218 Maryland 0 208 156 3 40 0 6,817 582 Massachusetts 0 208 156 1 17 0 2,897 247 Michigan 0 208 156 2 31 0 5,283 451 Minnesota 0 208 156 1 11 0 1,875 160 Mississippi 0 208 156 10 136 0 23,178 1,979 Missouri 0 208 156 1 16 0 2,727 233 Montana 0 208 156 13 179 0 30,506 2,604 Nebraska 0 208 156 1 11 0 1,875 160 Nevada 208 208 156 5 66 963 963 963 New Hampshire 0 208 156 1 12 0 2,045 175 New Jersey 0 208 156 3 44 0 7,499 640 New Mexico 0 208 156 3 45 0 7,669 655 New York 0 208 156 3 41 0 6,987 596 North Carolina 0 208 156 34 485 0 82,657 7,056 North Dakota 0 208 156 9 128 0 21,815 1,862 Ohio 0 208 156 2 31 0 5,283 451 Oklahoma 0 208 156 7 96 0 16,361 1,397 Oregon 0 208 156 12 177 0 30,165 2,575 Pennsylvania 0 208 156 4 51 0 8,692 742 Rhode Island 0 208 156 1 10 0 1,704 145 South Carolina 0 208 156 37 528 0 89,985 7,682 South Dakota 0 208 156 2 32 0 5,454 466 Tennessee 0 208 156 23 323 0 55,048 4,699 Texas 0 208 156 12 174 0 29,654 2,531*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Utah 0 208 156 2 25 0 4,261 364 Vermont 0 208 156 1 13 0 2,216 189 Virginia 0 208 156 11 155 0 26,416 2,255 Washington 0 208 156 24 340 0 57,945 4,947 West Virginia 0 208 156 2 23 0 3,920 335 Wisconsin 208 208 156 6 79 1,149 1,149 1,149 Wyoming 208 208 156 4 57 829 829 829 Puerto Rico 0 208 156 2 34 0 5,794 495 Other 0 208 156 n/a n/a 0 0 0 Total, US 519 7,415 0 1,065,906

1 Based on the trend of applicator numbers during th e period 2008 - 2013, these states are not likely to create the private chemigation category.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing private chemigation app licators in states that newly impose the private chemigation categor y must become certified, along with all new private chemigation applicators. In subseque nt years, the additional cost of chemigation certification is borne only by new private applicators; costs would remain constant thereafter. The PV of costs under the proposal , at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 In this case, while the number of first-tim e chemigation applicators in the regions is assumed to be constant over time, existing chemigation applicators in jurisdictions without a category will only need to obtai n certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Cost of the Potential requirement

 PV RC B = Present Value of the Regional Cost of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV RC P
– PV RC B

Table: Private Cert-06; Applicators; Steps 4 & 5 Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Hawaii 2 2 0 Idaho 135 135 0 Nevada 8 8 0 Wisconsin 10 10 0 Wyoming 7 7 0 45 states, Puerto Rico, and Other 1,512 0 1,512

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Incremental cost per 1 st time and existing chemigation applicator = NIC (U.S., annualized value) ÷ (sum of N 1st + N Xst for all regions)

 3% discount rate used for PV and annualized value*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Cert-06; Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 1,675 162 1,512 U.S. (annualized value) 191 18 172 Incremental cost per private chemigation applicator 0.026

State Costs of Developing Ne w Application Method-Specific Category Exam or Training

2.2.2.2 Private Cert-06: Develop New Private Chemigation Category Exam or 4-hour Training

EPA assumes that the cost of developing a 4-hou r or 8-hour training is the same. EPA further assumes that the cost of developing a training of various length or an exam is the same. Since the only difference between Privat e Cert-06 and Private Cert-07 is the requirement for 4-hour, or 8-hour training, respectively, (both have the exam option) the analysis below applies equally to both potential requirements, and is presented only once here.

Step 2 - Calculate Costs per Jurisdiction of Potential Requirement

Five states (HI, ID, NV, WI, & WY) require chemigation categor y certification in order for private applicators to apply RUPs by chemigation. These states require private applicators to pass a chemigation category exam for initial certif ication in the category. They already have the exam, so incur no cost to develop it due to Private Cert-06 or -07.

The remaining 45 states, Puerto Rico, and Othe r do not offer or require chemigation category certification for private applicat ors, so must bear the full cost of developing exams.

Jurisdictional action necessary to implement potential requirement:

 Develop category-specific exam or training ma terial within two year s of promulgation of final rule Assumptions:

 It takes a Jr. Technician 250 hour s to develop either an exam or training materials for a category

 The opportunity cost of the responsible staff is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

 EPA assumes all jurisdicti ons will develop exams

 Development of materials is done once, with labor and cost spread over first two years*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Cert-06 and - 07; Step 2; Jurisdictions; Cost per Jurisdiction to Develop Material s to Implement Potential Requirement; Develop Chemigation Category Exam

Action Wage ($/hour) Time (hours) Frequency Cost ($) Develop category exam 39.44 250 0.50 4,930 Total 4,930

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per jurisdiction for developing the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements meet or exceed the option are constrained to e qual the cost of the option.

 The cost per jurisdiction of developing the exam for implementation of the potential requirement ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional cost of developing the exam

 The regional cost of the potential requirement (RC P ) is the total annual jurisdictional cost of developing the exam

 Each jurisdiction would devel op one exam for the chemigation category, in the first two years following promulgation of the final rule, i.e., cost r,i, a P = RC P for each jurisdiction

 N Jur is the number of jurisdictions

 The “n/a” means that for these states th e estimated number of applicators doing chemigation application is zero in recent years. Therefore, EPA assumes that these states will not create this category, thus no need to develop an exam

Given the above: RC B = cost r,i, a B x N Jur RC P = cost r,i, a P x N Jur
Values are presented in the table below.

Table: Private Cert-06 and - 07; Jurisdictions; Step 3; Total Annual Baseline and Potential Require ment Costs for Developing Chemigation Category Exam for Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P

($) N Jur RC B ($) RC P ($) 5 jurisdictions with existing exam 0 0 5 0 0

Alabama 0 4,930 1 0 4,930 Alaska n/a 1 n/a n/a n/a n/a*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Arizona 0 4,930 1 0 4,930 Arkansas 0 4,930 1 0 4,930 California 0 4,930 1 0 4,930 Colorado 0 4,930 1 0 4,930 Connecticut 0 4,930 1 0 4,930 Delaware 0 4,930 1 0 4,930 Florida 0 4,930 1 0 4,930 Georgia 0 4,930 1 0 4,930 Illinois 0 4,930 1 0 4,930 Indiana 0 4,930 1 0 4,930 Iowa 0 4,930 1 0 4,930 Kansas 0 4,930 1 0 4,930 Kentucky 0 4,930 1 0 4,930 Louisiana 0 4,930 1 0 4,930 Maine 0 4,930 1 0 4,930 Maryland 0 4,930 1 0 4,930 Massachusetts 0 4,930 1 0 4,930 Michigan 0 4,930 1 0 4,930 Minnesota 0 4,930 1 0 4,930 Mississippi 0 4,930 1 0 4,930 Missouri 0 4,930 1 0 4,930 Montana 0 4,930 1 0 4,930 Nebraska 0 4,930 1 0 4,930 New Hampshire 0 4,930 1 0 4,930 New Jersey 0 4,930 1 0 4,930 New Mexico 0 4,930 1 0 4,930 New York 0 4,930 1 0 4,930 North Carolina 0 4,930 1 0 4,930 North Dakota 0 4,930 1 0 4,930 Ohio 0 4,930 1 0 4,930 Oklahoma 0 4,930 1 0 4,930 Oregon 0 4,930 1 0 4,930 Pennsylvania 0 4,930 1 0 4,930 Rhode Island 0 4,930 1 0 4,930 South Carolina 0 4,930 1 0 4,930 South Dakota 0 4,930 1 0 4,930 Tennessee 0 4,930 1 0 4,930 Texas 0 4,930 1 0 4,930 Utah 0 4,930 1 0 4,930 Vermont 0 4,930 1 0 4,930 Virginia 0 4,930 1 0 4,930 Washington 0 4,930 1 0 4,930 West Virginia 0 4,930 1 0 4,930 Puerto Rico 0 4,930 1 0 4,930*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Other n/a n/a n/a n/a n/a Total, U.S. 50 0 221,850
1 The "n/a" states currently do not have a chem igation category, and based on the applicator number data and trends in recent years (CPARD , 2013), EPA assumed that these states are not likely to create a chemigation category under the proposed rule.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions and develop exam and/or training materials in lin e with the proposed requirements. There would be no further costs. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ௉ ௧ୀଵ ∙ 1.97

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Regional Baseline Cost

 PV IC = Present Value of the Incremental Cost

 PV IC = PV RC P
– PV RC B

Table: Private Cert-06 and -07; Jurisdictions; Steps 4 & 5;*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Jurisdictional Present Values of Potentia l Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1000) PV RC B ($1000) PV IC ($1000) 5 jurisdictions with existing exam 0 0 0

Alabama 10 0 10 Alaska n/a 1 n/a n/a Arizona 10 0 10 Arkansas 10 0 10 California 10 0 10 Colorado 10 0 10 Connecticut 10 0 10 Delaware 10 0 10 Florida 10 0 10 Georgia 10 0 10 Illinois 10 0 10 Indiana 10 0 10 Iowa 10 0 10 Kansas 10 0 10 Kentucky 10 0 10 Louisiana 10 0 10 Maine 10 0 10 Maryland 10 0 10 Massachusetts 10 0 10 Michigan 10 0 10 Minnesota 10 0 10 Mississippi 10 0 10 Missouri 10 0 10 Montana 10 0 10 Nebraska 10 0 10 New Hampshire 10 0 10 New Jersey 10 0 10 New Mexico 10 0 10 New York 10 0 10 North Carolina 10 0 10 North Dakota 10 0 10 Ohio 10 0 10 Oklahoma 10 0 10 Oregon 10 0 10 Pennsylvania 10 0 10 Rhode Island 10 0 10 South Carolina 10 0 10 South Dakota 10 0 10 Tennessee 10 0 10*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Texas 10 0 10 Utah 10 0 10 Vermont 10 0 10 Virginia 10 0 10 Washington 10 0 10 West Virginia 10 0 10 Puerto Rico 10 0 10 Other n/a n/a n/a
1 The "n/a" states currently do not have a chem igation category, and based on the applicator number data and trends in recent years (CPARD , 2013), EPA assumed that these states are not likely to create a chemigation category under the proposed rule.

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Private Cert-06 and - 07; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 437 0 437 U.S. (annualized value) 50 0 50

State’s Proctoring Costs: Privat e Applicator Application Method- Specific Category Certification

Private Applicator
Although there are currently no federal private applicator certifica tion categories based on application method, some states do require certification in one or more of the application method-specific categories among those considered in the potential requir ements below. For private certification categories considered as pote ntial requirements (aerial, chemigation, general fumigation, soil fumigation, and non-soil fumigation) , there are different jurisdictions that currently require each. Jurisdicti ons that do not require a particular category have zero baseline cost for that category. Jurisdicti ons that require a given category in the baseline are assumed to*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

be in compliance, and have the state costs of exam administration that are at least equal to that of the proposed requirement.
For private applicators, the jurisdictions with one or more of the application method-specific categories in the baseline require certification by passing a written exam. The proposed rule, however, allows certification in these categories by either passing a written exam or completing a training program. However, EPA assumes that all jurisdictions with one or more of the application method-specific categories will cont inue their baseline pr actice and certify their private applicators by a written ex am under the new rule as well. For the jurisdictions that do not have the application method-specific categories in the baseline, there is no information on how (i.e., by exam or training) each jurisdiction woul d certify their private applicators under the proposed rule, and therefore, EPA assumes that th ey will also certify their private applicators by exam under the proposed rule.

2.2.2.3 Private Cert-06: Administer New Private Chemigation Category Exam or 4-hour Training

Step 1 - Calculate Baseline Costs

Jurisdictions that Require Certification in Chemigation Category in the Baseline

Five states (HI, ID, NV, WI, & WY) certify chemigation cate ogory by exam, and all except WY proctor the exam.

Assumptions:

 Currently, HI, ID, NV, & WI are in complia nce with Private Cert-06, proctoring the certification exam in the baseline

 It takes a Jr. Technician 1 hour to proctor a group of 50 examinees

 Proctoring of certification exam is done every year for the 10-year horizon for the first time applicators

 The wage rate for a Junior Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Private Cert-06; Step 1; Baseline Cost per Applicator to Proctor Priv ate Chemigation Category Certification Exam; States Currently Requiring Chem igation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) Proctor category exam 39.44 1 0.02 0.79 Total 0.79

Jurisdictions that do Not Require Certificat ion in Chemigation Category in the Baseline*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

The remaining 45 states, Puerto Rico, and Other do not require chemigation certification in the baseline.

Table: Private Cert-06; Step 1; Baseline Cost per Applicator to Proctor Priv ate Chemigation Category Certification Exam; Jurisdictions Currently Not Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no category certification requirement 39.44 0 0 0.00

Total 0.00

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Private Cert-06; Step 2; Cost per Applicator to Proctor Privat e Chemigation Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($) Proctor category exam 39.44 1 0.02 0.79 Total 0.79

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N 1st = number of “first time chemigation applicators.” This applies to both:

o Private applicators who begin applying RU Ps by chemigation for the first time in a given year, in jurisdictions that do not require certification in an chemigation category; and

o Private applicators who seek certification in the chemigation category for the first time in a given year, in states that currently require certification in the chemigation category.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 N Xst = number of existing chemigation appli cators. This applies only to existing chemigation applicators for juri sdictions not currently requiri ng private certification in a chemigation category.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Private Cert-06; Step 3; Total Annual Baseline and Potential Require ment Costs for Proctoring Chemigation Category Exam for Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i,1st P ($) cost r,i,Xst P ($) N 1st N Xst RC B ($) RC t=3 P ($) RC t>3 P ($)

Alabama 0 0.79 0.79 42.4 605.0 0.0 510.6 33.4 Alaska 0 0.79 0.79 n/a 1 n/a n/a n/a n/a Arizona 0 0.79 0.79 9.5 135.0 0.0 113.9 7.5 Arkansas 0 0.79 0.79 5.6 80.0 0.0 67.5 4.4 California 0 0.79 0.79 8.1 115.0 0.0 97.1 6.3 Colorado 0 0.79 0.79 4.8 68.0 0.0 57.4 3.8 Connecticut 0 0.79 0.79 0.9 13.0 0.0 11.0 0.7 Delaware 0 0.79 0.79 4.8 69.0 0.0 58.2 3.8 Florida 0 0.79 0.79 12.1 173.0 0.0 146.0 9.6 Georgia 0 0.79 0.79 103.5 1478.0 0.0 1,247.5 81.6 Hawaii 0.79 0.79 0.00 1.0 14.0 0.8 0.8 0.8 Idaho 0.79 0.79 0.00 73.7 1053.0 58.1 58.1 58.1 Illinois 0 0.79 0.79 0.6 9.0 0.0 7.6 0.5 Indiana 0 0.79 0.79 1.1 15.0 0.0 12.7 0.8 Iowa 0 0.79 0.79 2.2 31.0 0.0 26.2 1.7 Kansas 0 0.79 0.79 1.7 24.0 0.0 20.3 1.3 Kentucky 0 0.79 0.79 2.0 28.0 0.0 23.6 1.5 Louisiana 0 0.79 0.79 5.6 80.0 0.0 67.5 4.4 Maine 0 0.79 0.79 1.1 15.0 0.0 12.7 0.8 Maryland 0 0.79 0.79 2.8 40.0 0.0 33.8 2.2 Massachusetts 0 0.79 0.79 1.2 17.0 0.0 14.3 0.9 Michigan 0 0.79 0.79 2.2 31.0 0.0 26.2 1.7 Minnesota 0 0.79 0.79 0.8 11.0 0.0 9.3 0.6*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Mississippi 0 0.79 0.79 9.5 136.0 0.0 114.8 7.5 Missouri 0 0.79 0.79 1.1 16.0 0.0 13.5 0.9 Montana 0 0.79 0.79 12.5 179.0 0.0 151.1 9.9 Nebraska 0 0.79 0.79 0.8 11.0 0.0 9.3 0.6 Nevada 0.79 0.79 0.00 4.6 66.2 3.7 3.7 3.7 New Hampshire 0 0.79 0.79 0.8 12.0 0.0 10.1 0.7 New Jersey 0 0.79 0.79 3.1 44.0 0.0 37.1 2.4 New Mexico 0 0.79 0.79 3.2 45.0 0.0 38.0 2.5 New York 0 0.79 0.79 2.9 41.0 0.0 34.6 2.3 North Carolina 0 0.79 0.79 34.0 485.0 0.0 409.3 26.8 North Dakota 0 0.79 0.79 9.0 128.0 0.0 108.0 7.1 Ohio 0 0.79 0.79 2.2 31.0 0.0 26.2 1.7 Oklahoma 0 0.79 0.79 6.7 96.0 0.0 81.0 5.3 Oregon 0 0.79 0.79 12.4 177.0 0.0 149.4 9.8 Pennsylvania 0 0.79 0.79 3.6 51.0 0.0 43.0 2.8 Rhode Island 0 0.79 0.79 0.7 10.0 0.0 8.4 0.6 South Carolina 0 0.79 0.79 37.0 528.0 0.0 445.6 29.2 South Dakota 0 0.79 0.79 2.2 32.0 0.0 27.0 1.8 Tennessee 0 0.79 0.79 22.6 323.0 0.0 272.6 17.8 Texas 0 0.79 0.79 12.2 174.0 0.0 146.9 9.6 Utah 0 0.79 0.79 1.8 25.0 0.0 21.1 1.4 Vermont 0 0.79 0.79 0.9 13.0 0.0 11.0 0.7 Virginia 0 0.79 0.79 10.9 155.0 0.0 130.8 8.6 Washington 0 0.79 0.79 23.8 340.0 0.0 287.0 18.8 West Virginia 0 0.79 0.79 1.6 23.0 0.0 19.4 1.3 Wisconsin 0.79 0.79 0.00 5.5 79.0 4.4 4.4 4.4 Wyoming 0 0.79 0.79 4.0 57.0 0.0 48.1 3.1 Puerto Rico 0 0.79 0.79 2.4 34.0 0.0 28.7 1.9 Other 0 0.79 0.79 n/a n/a n/a n/a n/a Total, U.S. 519 7,415 67 5,302

1 The "n/a" states currently do not have a chemigation category, and based on the applicator number data and trends in recent years (CPARD, 2013), EPA assum es that these states are not likely to create a chemigation category under the proposed rule.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing private chemigation app licators in states that newly impose the private chemigation categor y must become certified, along with all new private chemigation applicators. In subseque nt years, the additional cost of chemigation certification is borne only by new private applicators; costs would remain constant thereafter. The PV of costs under the proposal , at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-tim e chemigation applicators in the regions is assumed to be constant over time, existing chemigation applicators in jurisdictions without a category will only need to obtai n certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Cert-06; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000)

Alabama 0.677 0.000 0.677 Alaska n/a 1 n/a n/a Arizona 0.151 0.000 0.151*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Arkansas 0.090 0.000 0.090 California 0.129 0.000 0.129 Colorado 0.076 0.000 0.076 Connecticut 0.015 0.000 0.015 Delaware 0.077 0.000 0.077 Florida 0.194 0.000 0.194 Georgia 1.655 0.000 1.655 Hawaii 0.005 0.005 0.000 Idaho 0.396 0.396 0.000 Illinois 0.010 0.000 0.010 Indiana 0.017 0.000 0.017 Iowa 0.035 0.000 0.035 Kansas 0.027 0.000 0.027 Kentucky 0.031 0.000 0.031 Louisiana 0.090 0.000 0.090 Maine 0.017 0.000 0.017 Maryland 0.045 0.000 0.045 Massachusetts 0.019 0.000 0.019 Michigan 0.035 0.000 0.035 Minnesota 0.012 0.000 0.012 Mississippi 0.152 0.000 0.152 Missouri 0.018 0.000 0.018 Montana 0.200 0.000 0.200 Nebraska 0.012 0.000 0.012 Nevada 0.025 0.025 0.000 New Hampshire 0.013 0.000 0.013 New Jersey 0.049 0.000 0.049 New Mexico 0.050 0.000 0.050 New York 0.046 0.000 0.046 North Carolina 0.543 0.000 0.543 North Dakota 0.143 0.000 0.143 Ohio 0.035 0.000 0.035 Oklahoma 0.108 0.000 0.108 Oregon 0.198 0.000 0.198 Pennsylvania 0.057 0.000 0.057 Rhode Island 0.011 0.000 0.011 South Carolina 0.591 0.000 0.591 South Dakota 0.036 0.000 0.036 Tennessee 0.362 0.000 0.362*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Texas 0.195 0.000 0.195 Utah 0.028 0.000 0.028 Vermont 0.015 0.000 0.015 Virginia 0.174 0.000 0.174 Washington 0.381 0.000 0.381 West Virginia 0.026 0.000 0.026 Wisconsin 0.030 0.030 0.000 Wyoming 0.064 0.000 0.064 Puerto Rico 0.038 0.000 0.038 Other n/a n/a n/a

1 The "n/a" states currently do not have a chemigation category, and based on the applicator number data and trends in recent years (CPARD, 2013), EPA assum es that these states are not likely to create a chemigation category under the proposed rule.

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Private Cert-06; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 707 U.S. (annualized value) 0.84 0.05 0.79*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

2.2.2.4 Private Cert-07: New Private Chemigatio n Category, Exam or 8-hour Training

Step 2 - Calculate Costs of Potential Requirement per First-Time Chemigation Category Certification by Private Applicator, Exam or 8-hour Training (Private Cert-07)
In jurisdictions currently without a chemigati on certification category, there are some private applicators who apply RUPs by chemigation (which is legal). Of these, some have been applying RUPs by chemigation for more than a year. Though not certifie d in the chemigation category, we will refer to these as “existing chemiga tion applicators.” Also in those states, each year some private applicators start applying RUPs by chemigation for the first time, referred to here as “first-time chemigation applicators.”
Since initial certification only occurs once, in the 5 states that requi re chemigation category certification, those applicators already certified in the chemigation category are not applicable to this potential requirement. They are certified chemigation applicators, not “existing chemigation applicators.” However, in these 5 states w ith the chemigation category, there are private applicators that seek certificati on in the chemigation category for the first time in a given year. They are considered here as an additional group of “first-time chem igation applicators.”
Chemigation category certificat ion, potential requirement:

 Pass chemigation category exam, or take 8 hour training. Definitions:

 Existing chemigation applicators: Private applicators who have been applying RUPs by chemigation for more than one year, in stat es that do not requir e certification in a chemigation category.

 First-time chemigation applicators:

o Private applicators who begin applying RU Ps by chemigation for the first time in a given year, in jurisdictions that do not require certification in a chemigation category; and

o Private applicators who seek certification in the chemigation category for the first time in a given year, in states that currently require certification in the chemigation category. Assumptions:

 Those taking the chemigation category exam or training are already private applicators.

 For first-time chemigation applicators, the exam takes 1 hour to take plus 7 hours of preparation time, or 8 hours total.

 For existing chemigation applic ators, the exam takes 1 hour to take plus 5 hours of preparation time, or 6 hours total. Existing chemigation applicators are assumed to take less time to prepare since they have al ready acquired knowledge and experience in chemigation application.

 The wage rate for private applicat ors is $51.96 [insert source and year]*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Cert-07; Applicators; Step 2; Cost of Potential Requirement per “First-time Chemigation Applicator” for Initially Certifying in Chemigation Category

Action Wage ($/hour) Time (hours) Frequency Cost ($) Prepare and take chemigation category exam 51.96 8 1 415.67

Table: Private Cert-07; Applicators; Step 2; Cost of Potential Requirement per “Existing Chemigation Applicator” for Initially Certifying in Chemigation Category

Action Wage ($/hour) Time (hours) Frequency Cost ($) Prepare and take chemigation category exam 51.96 6 1 311.76

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 Only 5 states require priv ate certification for chemig ation applications.

 The baseline unit cost per private applicat or initially certifying in the chemigation category ( cost r,i, a B ) is presented in Step 1. To avoi d the appearance of cost-savings, the baseline cost in jurisdictions whose re quirements meet or exceed the option are constrained to equal the cost of the option.

 The cost per first-time chemigation applicator of the potential requirement ( cost r,i,1st P ) is the cost under the potential re quirement per private applicator initially certifying in the chemigation category, in jurisdictions both with and without a current chemigation certification category, presented in Step 2.

 The cost per existing chemigation applic ator of the potenti al requirement ( cost r,i,Xst P ) is the cost under the potentia l requirement per existing ch emigation applicator, in jurisdictions not currently re quiring private certification in a chemigation category.

 N 1st = number of “first time chemigation ap plicators.” As defined under Step 2, this applies to both:

o Private applicators who begin applying RU Ps by chemigation for the first time in a given year, in jurisdictions that do not require certification in a chemigation category; and

o Private applicators who seek certification in the chemigation category for the first time in a given year, in states that currently require certification in the chemigation category.

 N Xst = number of “existing chemigation applic ators.” This applies only to existing chemigation applicators, as defined under St ep 2, for jurisdictions not currently requiring private certification in a chemigation category.

 There are no data on the numb er of existing or first-time chemigation applicators in jurisdictions that do not currently require chemigation category certification. EPA*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

assumes that there is one private chemig ation applicator for every 100 commercial chemigation applicators. See Chapter 3.3.3.

 In the 5 states that currently offer the chem igation category, state data on the number of private applicators who are certified in the chemigation category, are obtained from the CPARD database (see Chapter 3, Section 3.3)

 The baseline regional cost (RC B ) is the current total annua l regional cost for initial certification of private applicator s in the chemigation category.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for initial certification in the chemigation cat egory under the potential requirement.

 Existing chemigation applicators, in jurisd ictions not currently requiring chemigation category certification, would all become certif ied in the chemigation category one time only, in year three, when the rule would essentially become effective.

 The same number of first-time chemigation applicators would become certified in the chemigation category annually, starting in y ear three. This applies to first-time chemigation applicators both in jurisdic tions not currently requiring chemigation category certification, as well as in the 5 states that do.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Private Cert-07; Applicators; Step 3; Total Annual Regional Baseline and Potential Requirement Costs for Certification of Private App licators in the Chemigation Category

Region cost r,i, a B cost r,i,1st P cost r,i,Xst P N 1st N Xst RC B RC t=3 P RC t>3 P
($) ($) ($) ($) ($) ($) Alabama 0 416 312 42 605 0 206,216 17,604 Alaska 0 416 312 n/a 1 n/a 0 0 0 Arizona 0 416 312 9 135 0 46,015 3,928 Arkansas 0 416 312 6 80 0 27,268 2,328 California 0 416 312 8 115 0 39,198 3,346 Colorado 0 416 312 5 68 0 23,178 1,979 Connecticut 0 416 312 1 13 0 4,431 378 Delaware 0 416 312 5 69 0 23,519 2,008 Florida 0 416 312 12 173 0 58,968 5,034 Georgia 0 416 312 103 1,478 0 503,780 43,006 Hawaii 208 416 312 1 14 204 407 407 Idaho 208 416 312 74 1,053 15,320 30,639 30,639 Illinois 0 416 312 1 9 0 3,068 262*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Indiana 0 416 312 1 15 0 5,113 436 Iowa 0 416 312 2 31 0 10,566 902 Kansas 0 416 312 2 24 0 8,180 698 Kentucky 0 416 312 2 28 0 9,544 815 Louisiana 0 416 312 6 80 0 27,268 2,328 Maine 0 416 312 1 15 0 5,113 436 Maryland 0 416 312 3 40 0 13,634 1,164 Massachusetts 0 416 312 1 17 0 5,794 495 Michigan 0 416 312 2 31 0 10,566 902 Minnesota 0 416 312 1 11 0 3,749 320 Mississippi 0 416 312 10 136 0 46,356 3,957 Missouri 0 416 312 1 16 0 5,454 466 Montana 0 416 312 13 179 0 61,013 5,208 Nebraska 0 416 312 1 11 0 3,749 320 Nevada 208 416 312 5 66 963 1,926 1,926 New Hampshire 0 416 312 1 12 0 4,090 349 New Jersey 0 416 312 3 44 0 14,998 1,280 New Mexico 0 416 312 3 45 0 15,338 1,309 New York 0 416 312 3 41 0 13,975 1,193 North Carolina 0 416 312 34 485 0 165,314 14,112 North Dakota 0 416 312 9 128 0 43,629 3,724 Ohio 0 416 312 2 31 0 10,566 902 Oklahoma 0 416 312 7 96 0 32,722 2,793 Oregon 0 416 312 12 177 0 60,331 5,150 Pennsylvania 0 416 312 4 51 0 17,383 1,484 Rhode Island 0 416 312 1 10 0 3,409 291 South Carolina 0 416 312 37 528 0 179,970 15,363 South Dakota 0 416 312 2 32 0 10,907 931 Tennessee 0 416 312 23 323 0 110,095 9,398 Texas 0 416 312 12 174 0 59,308 5,063 Utah 0 416 312 2 25 0 8,521 727 Vermont 0 416 312 1 13 0 4,431 378 Virginia 0 416 312 11 155 0 52,832 4,510 Washington 0 416 312 24 340 0 115,890 9,893 West Virginia 0 416 312 2 23 0 7,840 669 Wisconsin 208 416 312 6 79 1,149 2,299 2,299 Wyoming 208 416 312 4 57 829 1,659 1,659 Puerto Rico 0 416 312 2 34 0 11,589 989 Other 0 416 312 n/a n/a 0 0 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Total, US 519 7,415 0 2,131,811

1 Based on the trend of applicator numbers during th e period 2008 - 2013, these states are not likely to create the private chemigation category.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing private chemigation app licators in states that newly impose the private chemigation categor y must become certified, along with all new private chemigation applicators. In subseque nt years, the additional cost of chemigation certification is borne only by new private applicators; costs would remain constant thereafter. The PV of costs under the proposal , at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 In this case, while the number of first-tim e chemigation applicators in the regions is assumed to be constant over time, existing chemigation applicators in jurisdictions without a category will only need to obtai n certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Cost of the Potential requirement

 PV RC B = Present Value of the Regional Cost of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV RC P
– PV RC B

Table: Private Cert-07; Applicators; Steps 4 & 5*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 298 0 298 Alaska 0 0 0 Arizona 66 0 66 Arkansas 39 0 39 California 57 0 57 Colorado 33 0 33 Connecticut 6 0 6 Delaware 34 0 34 Florida 85 0 85 Georgia 727 0 727 Hawaii 3 2 1 Idaho 239 135 104 Illinois 4 0 4 Indiana 7 0 7 Iowa 15 0 15 Kansas 12 0 12 Kentucky 14 0 14 Louisiana 39 0 39 Maine 7 0 7 Maryland 20 0 20 Massachusetts 8 0 8 Michigan 15 0 15 Minnesota 5 0 5 Mississippi 67 0 67 Missouri 8 0 8 Montana 88 0 88 Nebraska 5 0 5 Nevada 15 8 7 New Hampshire 6 0 6 New Jersey 22 0 22 New Mexico 22 0 22 New York 20 0 20 North Carolina 239 0 239 North Dakota 63 0 63 Ohio 15 0 15 Oklahoma 47 0 47 Oregon 87 0 87*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Pennsylvania 25 0 25 Rhode Island 5 0 5 South Carolina 260 0 260 South Dakota 16 0 16 Tennessee 159 0 159 Texas 86 0 86 Utah 12 0 12 Vermont 6 0 6 Virginia 76 0 76 Washington 167 0 167 West Virginia 11 0 11 Wisconsin 18 10 8 Wyoming 13 7 6 Puerto Rico 17 0 17 Other 0 0 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Incremental cost per 1 st time and existing chemigation applicator = NIC (U.S., annualized value) ÷ (sum of N 1st + N Xst for all regions)

 3% discount rate used for PV and annualized value
Table: Private Cert-07; Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 3,313 162 3,151 U.S. (annualized value) 377 18 359 Incremental cost per private chemigation applicator 0.055*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

2.2.2.5 Private Cert-07: Develop New Private Chemigation Category Exam or 8-hour Training

Costs are identical to those for “Private Cert -06: Develop New Private Chemigation Category Exam or 4-hour trai ning” in section 2.2.2.2.

2.2.2.6 Private Cert-07: Administer New Private Chemigation Category Exam or 8-hour Training
Proctoring costs for Private Cert -07 are identical to those for Private Cert-06 in section 2.2.2.3 because the exam taking time is the same (i.e., one hour) for a 4-hour or an 8-hour exam. Thus, it would take one hour of a Jr. Technician’s time to proctor either of these exams. A 4-hour exam will take a private applicat or 3 hours of preparation and 1 hour to take the exam, for a total of 4 hours, and an 8-hour exam would take a priv ate applicator 7 hours to prepare and 1 hour to take the exam, for a total of 8 hours.

2.2.3 Private General Fumigation Applications

Step 1 - Calculate Baseline Costs per Private Applicator for Initial General Fumigation Category Certification
A general fumigation category refers to both so il and non-soil fumigation uses permitted after certification in the single category.
No jurisdictions (50 states, Puerto Rico, and “Other”) require or offer a general fumigation category certification for private applicators. Although some private app licators apply RUPs by fumigation in these jurisdictions , the baseline cost is zero.

All Jurisdictions (50 States, Puerto Rico, and “Other”)
General Fumigation Category Certification Requirement:

 None Assumption:

 Some private applicators alre ady apply RUPs by fumigation, without cost for a general fumigation category certification.

Table: Private Cert-08; Step 1; Private Applicators; Baseline Cost per Private Applicator for Initial Certification in General Fumigation Category; All Jurisdictions (50 States, Puerto Rico, and Other)

Action Wage ($/hour) Time (hours) Frequency Cost ($)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

None – no general fumigation category certification requirement 51.96 0 0 0

2.2.3.1 Private Cert-08: New Private General Fumigation Category, Exam or 4-hour Training

Step 2 – Calculate Costs of Potential Requirement per Fumigation Category Certification by Private Applicator, Exam or 4-ho ur Training (Private Cert-08)
Although no jurisdiction cu rrently offers a general fumigati on certification category, there are some private applicators who apply RUPs by fumiga tion (which is legal). Of these, some have been applying RUPs by fumigation for more than a year. Though not certified in the general fumigation category, we will refer to these as “ex isting fumigation applicators.” Also, each year some private applicators start a pplying RUPs by fumigation for the fi rst time, referred to here as “first-time fumigation applicators.”
General fumigation category certific ation potential requirement:

 Private applicators must pass general fumigation category exam , or take 4 hour training Definitions:

 Existing fumigation applicators: Private a pplicators who have been applying RUPs by fumigation for more than one year.

 First-time fumigation applicators: Privat e applicators who begi n applying RUPs by fumigation for the first time in a given year.

Assumptions:

 Those taking the general fumigation categor y exam or training are already private applicators.

 For first-time fumigation applicators, the ex am takes 1 hour to take plus 3 hours of preparation time, or 4 hours total.

 For existing fumigation applicators, the exam takes 1 hour to take plus 2 hours of preparation time, or 3 hours total. Existing fumigation applicators are assumed to take less time to prepare since they have al ready acquired knowledge and experience in fumigation application.

 The wage rate for private applicat ors is $51.96 [insert source and year]

Table: Private Cert-08; Private Applicators; Step 2; Cost of Po tential Requirement per Private Applicator Initially Certifyi ng in General Fumigation Category

Action Wage ($) Time (hours) Frequency Cost ($) First-time fumigation applicator Prepare and take general fumigation category exam 51.96 4 1 208*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Existing fumigation applicator Prepare and take general fumigation category exam 51.96 3 1 156

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per private applicator in itially certifying in the general fumigation category ( cost r,i, a B ) is presented in Step 1. To avoi d the appearance of cost-savings, the baseline cost in jurisdictions whose re quirements meet or exceed the option are constrained to equal the cost of the option.

 The cost per first-time fumigation applic ator of the potenti al requirement ( cost r,i,1st P ) is the cost under the potential re quirement per private applicator initially certifying in the general fumigation category, presented in Step 2.

 The cost per existing fumigation applic ator of the potenti al requirement ( cost r,i,Xst P ) is the cost under the potential requirement per existing fumigation applicator.

 N 1st = number of “first-time fumigation applicators,” as defined under Step 2.

 N Xst = number of “existing fumigation a pplicators,” as defined under Step 2.

 There are no data on the number of existing or first-time fumigation applicators since no jurisdictions curre ntly require general fumigation category certification. EPA has estimated the number of existing and first-tim e fumigation applicators. See Chapter 3.3.1

 The baseline regional cost (RC B ) is the current total annua l regional cost for initial certification of private applicators in the general fumigation category.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for private applicators, of certif ication in the general fumigati on category under the potential requirement.

 Existing fumigation applicators would all b ecome certified in the general fumigation category one time only, in year three, when th e rule would essentially become effective.

 The same number of first-time fumigation ap plicators would become certified in the general fumigation category each y ear, starting in year three.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Private Cert-08; Pr ivate Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Certification of Private Applicators in General Fumigation Category

Region cost r,i, a B cost r,i,1st P

cost r,i,Xst P N 1st N Xst RC B RC t=3 P RC t>3 P*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

($) ($) ($) ($) ($) ($) Alabama 0 208 156 20 194 0 34,566 4,253 Alaska 0 208 156 n/a 1 n/a 0 0 0 Arizona 0 208 156 7 75 0 13,243 1,539 Arkansas 0 208 156 82 771 0 137,366 17,108 California 0 208 156 128 1,255 0 222,231 26,620 Colorado 0 208 156 25 244 0 43,222 5,170 Connecticut 0 208 156 0 2 0 345 33 Delaware 0 208 156 1 11 0 1,978 199 Florida 0 208 156 80 886 0 154,717 16,685 Georgia 0 208 156 88 808 0 144,207 18,260 Hawaii 0 208 156 5 48 0 8,389 959 Idaho 0 208 156 24 227 0 40,496 5,060 Illinois 0 208 156 60 553 0 98,785 12,527 Indiana 0 208 156 46 429 0 76,541 9,611 Iowa 0 208 156 85 787 0 140,401 17,668 Kansas 0 208 156 55 514 0 91,581 11,404 Kentucky 0 208 156 42 396 0 70,402 8,733 Louisiana 0 208 156 29 282 0 50,094 6,103 Maine 0 208 156 2 24 0 4,189 492 Maryland 0 208 156 20 215 0 37,682 4,151 Massachusetts 0 208 156 2 17 0 2,997 367 Michigan 0 208 156 30 283 0 50,346 6,238 Minnesota 0 208 156 4 47 0 8,158 831 Mississippi 0 208 156 37 346 0 61,526 7,657 Missouri 0 208 156 76 704 0 125,648 15,865 Montana 0 208 156 n/a n/a 0 0 0 Nebraska 0 208 156 81 745 0 132,845 16,769 Nevada 0 208 156 7 81 0 14,106 1,480 New Hampshire 0 208 156 0 1 0 173 17 New Jersey 0 208 156 7 75 0 13,133 1,451 New Mexico 0 208 156 14 155 0 27,209 2,991 New York 0 208 156 28 272 0 48,254 5,846 North Carolina 0 208 156 89 838 0 149,083 18,498 North Dakota 0 208 156 119 1,352 0 235,427 24,646 Ohio 0 208 156 55 504 0 89,976 11,351*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Oklahoma 0 208 156 50 472 0 83,931 10,371 Oregon 0 208 156 22 220 0 38,926 4,653 Pennsylvania 0 208 156 22 244 0 42,614 4,553 Rhode Island 0 208 156 0 1 0 173 17 South Carolina 0 208 156 32 326 0 57,479 6,732 South Dakota 0 208 156 54 501 0 89,331 11,285 Tennessee 0 208 156 39 366 0 65,191 8,197 Texas 0 208 156 156 1,448 0 258,152 32,514 Utah 0 208 156 8 92 0 16,104 1,734 Vermont 0 208 156 n/a n/a 0 0 0 Virginia 0 208 156 28 288 0 50,845 5,889 Washington 0 208 156 77 728 0 129,564 16,072 West Virginia 0 208 156 4 43 0 7,551 835 Wisconsin 0 208 156 6 65 0 11,534 1,350 Wyoming 0 208 156 14 130 0 23,284 2,951 Puerto Rico 0 208 156 58 524 0 93,572 11,969 Other 0 208 156 n/a n/a 0 0 0 Total, US 1,923 18,591 0 3,297,568

1 Based on the trend of applicator numbers during th e period 2008 - 2013, these states are not likely to create the private general fumigation category.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing private fumigation applic ators in states that newly impose the private general fumigation cat egory must become certified, along with all new private fumigation applicators. In subsequent years, the additi onal cost of general fumigation certification is borne only by new private applicators; costs would remain constant thereafter. The PV of costs under the proposal , at a 3% discount rate, is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 In this case, while the number of first-tim e fumigation applicator s is assumed to be constant over time, existing fumigation applicat ors will only need to obtain certification once, when the rule is implemented. EPA a ssumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Cert-08; Pri vate Applicators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) All jurisdictions 5,456 0 5,456

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Per fumigation applicator incremental cost = NIC (U.S., annualized value) ÷ (sum of N 1st
time + N Xst for all regions)

 3% discount rate used for PV and annualized value*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Cert-08; Pr ivate Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 5,456 0 5,456 U.S. (annualized value) 621 0 621 Per fumigation applicator incremental cost 0.030

2.2.3.2 Private Cert-08: Develop New Private Gene ral Fumigation Category Exam or 4-hour Training

EPA assumes that the cost of developing 4-hour or 8- hour training is the same. EPA further assumes that the cost of developing a training of various length or an exam is the same. Since the only difference between Privat e Cert-08 and Private Cert-09 is the requirement for 4-hour, or 8-hour training, respectively, (both have the exam option) the analysis below applies equally to both potential requirements, a nd is presented only once.

Step 2 - Calculate Costs per Jurisdiction of Potential Requirement

In the baseline, no jurisdiction requires genera l fumigation category certification in order for private applicators to apply RUPs by fumigation. Therefore, all ju risdictions would bear the full cost of developing exams under these potential requirements.

Jurisdictional action necessary to implement potential requirement:

 Develop category-specific exam or training ma terial within two year s of promulgation of final rule Assumptions:

 It takes a Jr. Technician 250 hour s to develop either an exam or training materials for a category

 The opportunity cost of the responsible staff is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

 EPA assumes all jurisdicti ons will develop exams

 Development of materials is done once, with labor and cost spread over first two years

Table: Private Cert-08; Step 2; Jurisdictions; Cost per Jurisdiction to Develop Material s to Implement Potential Requirement; Develop General Fumigation Category Exam

Action Wage ($/hour) Time (hours) Frequency Cost ($) Develop category exam 39.44 250 0.50 4,930 Total 4,930*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per jurisdiction for developing the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements meet or exceed the option are constrained to e qual the cost of the option.

 The cost per jurisdiction of developing the exam for implementation of the potential requirement ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional cost of developing the exam

 The regional cost of the potential requirement (RC P ) is the total annual jurisdictional cost of developing the exam

 Each jurisdiction would develop one exam for the general fumigation category, in the first two years following promulgation of the final rule, i.e., cost r,i, a P = RC P for each jurisdiction

 N Jur is the number of jurisdictions

 The “n/a” means that for these states the es timated number of applicators doing general fumigation application is zero in recent years. Therefore, EPA assumes that these states will not create this category, thus no need to develop an exam

Given the above: RC B = cost r,i, a B x N Jur RC P = cost r,i, a P x N Jur
Values are presented in the table below.

Table: Private Cert-08; Jurisdictions; Step 3; Total Annual Baseline and Potential Requi rement Costs for Developing General Fumigation Category Exam for Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P

($) N Jur RC B ($) RC P ($) Alabama 0 4,930 1 0 4,930 Alaska n/a 1 n/a n/a n/a n/a Arizona 0 4,930 1 0 4,930 Arkansas 0 4,930 1 0 4,930 California 0 4,930 1 0 4,930 Colorado 0 4,930 1 0 4,930 Connecticut 0 4,930 1 0 4,930 Delaware 0 4,930 1 0 4,930 Florida 0 4,930 1 0 4,930 Georgia 0 4,930 1 0 4,930*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Hawaii 0 4,930 1 0 4,930 Idaho 0 4,930 1 0 4,930 Illinois 0 4,930 1 0 4,930 Indiana 0 4,930 1 0 4,930 Iowa 0 4,930 1 0 4,930 Kansas 0 4,930 1 0 4,930 Kentucky 0 4,930 1 0 4,930 Louisiana 0 4,930 1 0 4,930 Maine 0 4,930 1 0 4,930 Maryland 0 4,930 1 0 4,930 Massachusetts 0 4,930 1 0 4,930 Michigan 0 4,930 1 0 4,930 Minnesota 0 4,930 1 0 4,930 Mississippi 0 4,930 1 0 4,930 Missouri 0 4,930 1 0 4,930 Montana n/a n/a n/a n/a n/a Nebraska 0 4,930 1 0 4,930 Nevada 0 4,930 1 0 4,930 New Hampshire 0 4,930 1 0 4,930 New Jersey 0 4,930 1 0 4,930 New Mexico 0 4,930 1 0 4,930 New York 0 4,930 1 0 4,930 North Carolina 0 4,930 1 0 4,930 North Dakota 0 4,930 1 0 4,930 Ohio 0 4,930 1 0 4,930 Oklahoma 0 4,930 1 0 4,930 Oregon 0 4,930 1 0 4,930 Pennsylvania 0 4,930 1 0 4,930 Rhode Island 0 4,930 1 0 4,930 South Carolina 0 4,930 1 0 4,930 South Dakota 0 4,930 1 0 4,930 Tennessee 0 4,930 1 0 4,930 Texas 0 4,930 1 0 4,930 Utah 0 4,930 1 0 4,930 Vermont n/a n/a n/a n/a n/a Virginia 0 4,930 1 0 4,930 Washington 0 4,930 1 0 4,930 West Virginia 0 4,930 1 0 4,930 Wisconsin 0 4,930 1 0 4,930 Wyoming 0 4,930 1 0 4,930 Puerto Rico 0 4,930 1 0 4,930 Other n/a n/a n/a n/a n/a Total, U.S. 48 0 236,640*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

1 The "n/a" states currently do not have a general fumigation cate gory, and based on the applicator number data and trends in recen t years (CPARD, 2013), EPA assumed that these states are not likely to create a general fu migation category under the proposed rule.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions and develop exam and/or training materials in lin e with the proposed requirements. There would be no further costs. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ௉ ௧ୀଵ ∙ 1.97

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Regional Baseline Cost

 PV IC = Present Value of the Incremental Cost

 PV IC = PV RC P
– PV RC B

Table: Private Cert-08; Ju risdictions; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 10 0 10 Alaska n/a 1 n/a n/a Arizona 10 0 10 Arkansas 10 0 10*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

California 10 0 10 Colorado 10 0 10 Connecticut 10 0 10 Delaware 10 0 10 Florida 10 0 10 Georgia 10 0 10 Hawaii 10 0 10 Idaho 10 0 10 Illinois 10 0 10 Indiana 10 0 10 Iowa 10 0 10 Kansas 10 0 10 Kentucky 10 0 10 Louisiana 10 0 10 Maine 10 0 10 Maryland 10 0 10 Massachusetts 10 0 10 Michigan 10 0 10 Minnesota 10 0 10 Mississippi 10 0 10 Missouri 10 0 10 Montana n/a n/a n/a Nebraska 10 0 10 Nevada 10 0 10 New Hampshire 10 0 10 New Jersey 10 0 10 New Mexico 10 0 10 New York 10 0 10 North Carolina 10 0 10 North Dakota 10 0 10 Ohio 10 0 10 Oklahoma 10 0 10 Oregon 10 0 10 Pennsylvania 10 0 10 Rhode Island 10 0 10 South Carolina 10 0 10 South Dakota 10 0 10 Tennessee 10 0 10 Texas 10 0 10 Utah 10 0 10 Vermont n/a n/a n/a Virginia 10 0 10 Washington 10 0 10 West Virginia 10 0 10*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Wisconsin 10 0 10 Wyoming 10 0 10 Puerto Rico 10 0 10 Other n/a n/a n/a
1 The "n/a" states currently do not have a general fumigation cate gory, and based on the applicator number data and trends in recen t years (CPARD, 2013), EPA assumed that these states are not likely to create a general fu migation category under the proposed rule.

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Private Cert-08; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 466 0 466 U.S. (annualized value) 53 0 53

State’s Proctoring Costs: Privat e Applicator Application Method- Specific Category Certification

Although there are currently no federal private applicator certifica tion categories based on application method, some states do require certification in one or more of the application method-specific categories among those considered in the potential requir ements below. For private certification categories considered as pote ntial requirements (aerial, chemigation, general fumigation, soil fumigation, and non-soil fumigation) , there are different jurisdictions that currently require each. Jurisdicti ons that do not require a particular category have zero baseline cost for that category. Jurisdicti ons that require a given category in the baseline are assumed to be in compliance, and have the state costs of exam administration that are at least equal to that of the proposed requirement.
For private applicators, the jurisdictions with one or more of the application method-specific categories in the baseline require certification by passing a written exam. The proposed rule, however, allows certification in these categories by either passing a written exam or completing*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

a training program. However, EPA assumes that all jurisdictions with one or more of the application method-specific categories will cont inue their baseline pr actice and certify their private applicators by a written ex am under the new rule as well. For the jurisdictions that do not have the application method-specific categories in the baseline, there is no information on how (i.e., by exam or training) each jurisdiction woul d certify their private applicators under the proposed rule, and therefore, EPA assumes that th ey will also certify their private applicators by exam under the proposed rule.

2.2.3.3 Private Cert-08: Administer New Private General fumigation Category Exam or 4- hour Training

Step 1 - Calculate Baseline Costs

Jurisdictions that Require Certification in Ge neral fumigation Category in the Baseline

In the baseline, no jurisdiction requires cer tification for general fumigation category.

Assumptions:

 Currently, no jurisdiction is in compliance with Private Cert-08

 It takes a Jr. Technician 1 hour to proctor a group of 50 examinees

 Proctoring of certification exam is done every year for the 10-year horizon for the first time applicators

 The wage rate for a Junior Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Private Cert-08; Step 1; Baseline Cost per Applicator to Proctor Priv ate General fumigation Category Certification Exam; States Currently Requiring General fumigation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) Proctor category exam 39.44 1 0.02 0.79 Total 0.79

Jurisdictions that do Not Require Certificat ion in General fumigation Category in the Baseline

50 states, Puerto Rico, and Other do not require general fumigation ce rtification in the baseline.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Cert-08; Step 1; Baseline Cost per Applicator to Proctor Priv ate General fumigation Category Certification Exam; Jurisdictions Currently Not Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no category certification requirement 39.44 0 0 0.00

Total 0.00

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Private Cert-08; Step 2; Cost per Applicator to Proctor Private Ge neral fumigation Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($) Proctor category exam 39.44 1 0.02 0.79 Total 0.79

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N 1st = number of “first time general fumigati on applicators.” This applies to both:

o Private applicators who begin applying RUPs by general fumigation for the first time in a given year, in jurisdictions that do not require certifi cation in an general fumigation category; and

o Private applicators who seek certification in the general fumigation category for the first time in a given year, in states that currently require certification in the general fumigation category.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 N Xst = number of existing general fumigation a pplicators. This applies only to existing general fumigation applicators for jurisd ictions not currently requiring private certification in a genera l fumigation category.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Private Cert-08; Step 3; Total Annual Baseline and Potential Requireme nt Costs for Proctoring General fumigation Category Exam for Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i,1st P ($) cost r,i,Xst P ($) N 1st N Xst RC B ($) RC t=3 P ($) RC t>3 P ($)

Alabama 0 0.79 0.79 20.5 194.5 0.0 169.5 16.1 Alaska 0 0.79 0.79 n/a n/a n/a n/a n/a Arizona 0 0.79 0.79 7.4 75.1 0.0 65.1 5.8 Arkansas 0 0.79 0.79 82.3 771.5 0.0 673.5 64.9 California 0 0.79 0.79 128.1 1254.9 0.0 1,090.9 101.0 Colorado 0 0.79 0.79 24.9 244.1 0.0 212.2 19.6 Connecticut 0 0.79 0.79 0.2 2.0 0.0 1.7 0.1 Delaware 0 0.79 0.79 1.0 11.4 0.0 9.8 0.8 Florida 0 0.79 0.79 80.3 885.5 0.0 761.8 63.3 Georgia 0 0.79 0.79 87.9 808.0 0.0 706.6 69.3 Hawaii 0 0.79 0.79 4.6 47.7 0.0 41.2 3.6 Idaho 0 0.79 0.79 24.3 227.3 0.0 198.5 19.2 Illinois 0 0.79 0.79 60.3 553.4 0.0 484.0 47.5 Indiana 0 0.79 0.79 46.2 429.4 0.0 375.2 36.5 Iowa 0 0.79 0.79 85.0 787.4 0.0 688.1 67.1 Kansas 0 0.79 0.79 54.9 514.4 0.0 449.0 43.3 Kentucky 0 0.79 0.79 42.0 395.6 0.0 345.2 33.1 Louisiana 0 0.79 0.79 29.4 282.2 0.0 245.8 23.2 Maine 0 0.79 0.79 2.4 23.7 0.0 20.6 1.9 Maryland 0 0.79 0.79 20.0 215.1 0.0 185.4 15.8 Massachusetts 0 0.79 0.79 1.8 16.9 0.0 14.7 1.4 Michigan 0 0.79 0.79 30.0 283.0 0.0 246.9 23.7 Minnesota 0 0.79 0.79 4.0 47.0 0.0 40.2 3.2*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Mississippi 0 0.79 0.79 36.8 345.6 0.0 301.7 29.1 Missouri 0 0.79 0.79 76.3 704.3 0.0 615.8 60.2 Montana 0 0.79 0.79 n/a n/a n/a n/a n/a Nebraska 0 0.79 0.79 80.7 744.7 0.0 651.0 63.6 Nevada 0 0.79 0.79 7.1 81.0 0.0 69.5 5.6 New Hampshire 0 0.79 0.79 0.1 1.0 0.0 0.9 0.1 New Jersey 0 0.79 0.79 7.0 74.9 0.0 64.6 5.5 New Mexico 0 0.79 0.79 14.4 155.4 0.0 133.9 11.4 New York 0 0.79 0.79 28.1 272.1 0.0 236.8 22.2 North Carolina 0 0.79 0.79 89.0 837.7 0.0 731.0 70.2 North Dakota 0 0.79 0.79 118.6 1352.2 0.0 1,160.2 93.5 Ohio 0 0.79 0.79 54.6 504.4 0.0 441.0 43.1 Oklahoma 0 0.79 0.79 49.9 471.9 0.0 411.6 39.4 Oregon 0 0.79 0.79 22.4 219.9 0.0 191.1 17.7 Pennsylvania 0 0.79 0.79 21.9 244.2 0.0 209.9 17.3 Rhode Island 0 0.79 0.79 0.1 1.0 0.0 0.9 0.1 South Carolina 0 0.79 0.79 32.4 325.6 0.0 282.3 25.6 South Dakota 0 0.79 0.79 54.3 500.7 0.0 437.8 42.8 Tennessee 0 0.79 0.79 39.4 365.6 0.0 319.5 31.1 Texas 0 0.79 0.79 156.4 1447.5 0.0 1,265.2 123.4 Utah 0 0.79 0.79 8.3 92.2 0.0 79.3 6.6 Vermont 0 0.79 0.79 n/a n/a n/a n/a n/a Virginia 0 0.79 0.79 28.3 288.4 0.0 249.8 22.4 Washington 0 0.79 0.79 77.3 728.1 0.0 635.3 61.0 West Virginia 0 0.79 0.79 4.0 43.1 0.0 37.2 3.2 Wisconsin 0 0.79 0.79 6.5 65.3 0.0 56.7 5.1 Wyoming 0 0.79 0.79 14.2 130.4 0.0 114.1 11.2 Puerto Rico 0 0.79 0.79 57.6 523.5 0.0 458.4 45.4 Other 0 0.79 0.79 n/a n/a n/a n/a n/a Total, U.S. 1,923 18,591 0 16,181

1 The "n/a" states currently do not have a general fumi gation category, and based on the applicator number data and trends in recent years (CPARD, 2013), EPA assumes that these states are not likely to create a general fumigation category under the proposed rule.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing private general fumigation applicators in states that newly impose the private general fumigati on category must become certified, along with all new private general fumigation appl icators. In subsequent years, the additional cost of general fumigation certification is borne only by new private applicators; costs would remain constant thereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-time general fumigation applic ators in the regions is assumed to be constant over time, existing general fumigation applicators in jurisdictions without a category will only need to obtain certif ication once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Cert-08; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000)

Alabama 0.255 0.000 0.255 Alaska n/a n/a n/a Arizona 0.096 0.000 0.096*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Arkansas 1.016 0.000 1.016 California 1.622 0.000 1.622 Colorado 0.315 0.000 0.315 Connecticut 0.002 0.000 0.002 Delaware 0.014 0.000 0.014 Florida 1.090 0.000 1.090 Georgia 1.073 0.000 1.073 Hawaii 0.060 0.000 0.060 Idaho 0.300 0.000 0.300 Illinois 0.735 0.000 0.735 Indiana 0.568 0.000 0.568 Iowa 1.042 0.000 1.042 Kansas 0.677 0.000 0.677 Kentucky 0.520 0.000 0.520 Louisiana 0.368 0.000 0.368 Maine 0.030 0.000 0.030 Maryland 0.267 0.000 0.267 Massachusetts 0.022 0.000 0.022 Michigan 0.372 0.000 0.372 Minnesota 0.056 0.000 0.056 Mississippi 0.455 0.000 0.455 Missouri 0.934 0.000 0.934 Montana n/a n/a n/a Nebraska 0.987 0.000 0.987 Nevada 0.099 0.000 0.099 New Hampshire 0.001 0.000 0.001 New Jersey 0.093 0.000 0.093 New Mexico 0.193 0.000 0.193 New York 0.353 0.000 0.353 North Carolina 1.101 0.000 1.101 North Dakota 1.643 0.000 1.643 Ohio 0.669 0.000 0.669 Oklahoma 0.619 0.000 0.619 Oregon 0.284 0.000 0.284 Pennsylvania 0.299 0.000 0.299 Rhode Island 0.001 0.000 0.001 South Carolina 0.416 0.000 0.416 South Dakota 0.664 0.000 0.664 Tennessee 0.484 0.000 0.484*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Texas 1.917 0.000 1.917 Utah 0.113 0.000 0.113 Vermont n/a n/a n/a Virginia 0.367 0.000 0.367 Washington 0.957 0.000 0.957 West Virginia 0.054 0.000 0.054 Wisconsin 0.084 0.000 0.084 Wyoming 0.173 0.000 0.173 Puerto Rico 0.699 0.000 0.699 Other n/a n/a n/a

1 The "n/a" states currently do not have a general fumi gation category, and based on the applicator number data and trends in recent years (CPARD, 2013), EPA assumes that these states are not likely to create a general fumigation category under the proposed rule.

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Private Cert-08; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 24 0 24 U.S. (annualized value) 3 0 3

2.2.3.4 Private Cert-09: New Private General Fumigation Category, Exam or 8-hour Training

Step 2 - Calculate Costs of Potential Requiremen t per Fumigation Category Certification by Private Applicator, Exam or 8-ho ur Training (Private Cert-09)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Although no jurisdiction curre ntly offers a general fumigation certification category, there are some private applicators who apply RUPs by fumiga tion (which is legal). Of these, some have been applying RUPs by fumigation for more than a year. Though not certified in the general fumigation category, we will refer to these as “ex isting fumigation applicators.” Also, each year some private applicators start a pplying RUPs by fumigation for the fi rst time, referred to here as “first-time fumigation applicators.”
General fumigation category certific ation potential requirement:

 Private applicators must pass general fumigation category exam , or take 8 hour training Definitions:

 Existing fumigation applicators: Private a pplicators who have been applying RUPs by fumigation for more than one year.

 First-time fumigation applicators: Privat e applicators who begi n applying RUPs by fumigation for the first time in a given year.

Assumptions:

 Those taking the general fumigation categor y exam or training are already private applicators.

 For first-time fumigation applicators, the ex am takes 1 hour to take plus 7 hours of preparation time, or 8 hours total.

 For existing fumigation applicators, the exam takes 1 hour to take plus 5 hours of preparation time, or 6 hours total. Existing fumigation applicators are assumed to take less time to prepare since they have al ready acquired knowledge and experience in fumigation application.

 The wage rate for private applicat ors is $51.96 [insert source and year]

Table: Private Cert-09; Private Applicators; Step 2; Cost of Potential Requirement per Private Applicator Initially Certifyi ng in General Fumigation Category

Action Wage ($) Time (hours) Frequency Cost ($) First-time fumigation applicator Prepare and take general fumigation category exam 51.96 8 1 416

Existing fumigation applicator Prepare and take general fumigation category exam 51.96 6 1 312

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per private applicator in itially certifying in the general fumigation category ( cost r,i, a B ) is presented in Step 1. To avoi d the appearance of cost-savings, the*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

baseline cost in jurisdictions whose re quirements meet or exceed the option are constrained to equal the cost of the option.

 The cost per first-time fumigation applic ator of the potenti al requirement ( cost r,i,1st P ) is the cost under the potential re quirement per private applicator initially certifying in the general fumigation category, presented in Step 2.

 The cost per existing fumigation applic ator of the potenti al requirement ( cost r,i,Xst P ) is the cost under the potential requirement per existing fumigation applicator.

 N 1st = number of “first-time fumigation applicators,” as defined under Step 2.

 N Xst = number of “existing fumigation a pplicators,” as defined under Step 2.

 There are no data on the number of existing or first-time fumigation applicators since no jurisdictions curre ntly require general fumigation category certification. EPA has estimated the number of existing and first-tim e fumigation applicators. See Chapter 3.3.1

 The baseline regional cost (RC B ) is the current total annua l regional cost for initial certification of private applicators in the general fumigation category.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for private applicators, of certif ication in the general fumigati on category under the potential requirement.

 Existing fumigation applicators would all b ecome certified in the general fumigation category one time only, in year three, when th e rule would essentially become effective.

 The same number of first-time fumigation ap plicators would become certified in the general fumigation category each y ear, starting in year three.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Private Cert-09; Pr ivate Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Certification of Private Applicators in General Fumigation Category

Region cost r,i, a B cost r,i,1st P

cost r,i,Xst P N 1st N Xst RC B RC t=3 P RC t>3 P
($) ($) ($) ($) ($) ($) Alabama 0 416 312 20 194 0 69,131 8,505 Alaska 0 416 312 n/a 1 n/a 0 0 0 Arizona 0 416 312 7 75 0 26,486 3,078 Arkansas 0 416 312 82 771 0 274,731 34,216 California 0 416 312 128 1,255 0 444,462 53,239 Colorado 0 416 312 25 244 0 86,445 10,339 Connecticut 0 416 312 0 2 0 690 67 Delaware 0 416 312 1 11 0 3,956 397*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Florida 0 416 312 80 886 0 309,434 33,369 Georgia 0 416 312 88 808 0 288,414 36,520 Hawaii 0 416 312 5 48 0 16,778 1,918 Idaho 0 416 312 24 227 0 80,991 10,120 Illinois 0 416 312 60 553 0 197,570 25,053 Indiana 0 416 312 46 429 0 153,082 19,221 Iowa 0 416 312 85 787 0 280,802 35,337 Kansas 0 416 312 55 514 0 183,163 22,808 Kentucky 0 416 312 42 396 0 140,803 17,466 Louisiana 0 416 312 29 282 0 100,189 12,206 Maine 0 416 312 2 24 0 8,379 985 Maryland 0 416 312 20 215 0 75,364 8,302 Massachusetts 0 416 312 2 17 0 5,995 734 Michigan 0 416 312 30 283 0 100,692 12,477 Minnesota 0 416 312 4 47 0 16,315 1,663 Mississippi 0 416 312 37 346 0 123,051 15,315 Missouri 0 416 312 76 704 0 251,297 31,729 Montana 0 416 312 n/a n/a 0 0 0 Nebraska 0 416 312 81 745 0 265,690 33,538 Nevada 0 416 312 7 81 0 28,212 2,960 New Hampshire 0 416 312 0 1 0 345 33 New Jersey 0 416 312 7 75 0 26,265 2,903 New Mexico 0 416 312 14 155 0 54,418 5,982 New York 0 416 312 28 272 0 96,509 11,692 North Carolina 0 416 312 89 838 0 298,166 36,996 North Dakota 0 416 312 119 1,352 0 470,855 49,292 Ohio 0 416 312 55 504 0 179,952 22,702 Oklahoma 0 416 312 50 472 0 167,862 20,742 Oregon 0 416 312 22 220 0 77,853 9,305 Pennsylvania 0 416 312 22 244 0 85,227 9,107 Rhode Island 0 416 312 0 1 0 345 33 South Carolina 0 416 312 32 326 0 114,958 13,464 South Dakota 0 416 312 54 501 0 178,662 22,569 Tennessee 0 416 312 39 366 0 130,383 16,394 Texas 0 416 312 156 1,448 0 516,304 65,028 Utah 0 416 312 8 92 0 32,208 3,469 Vermont 0 416 312 n/a n/a 0 0 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Virginia 0 416 312 28 288 0 101,690 11,778 Washington 0 416 312 77 728 0 259,127 32,144 West Virginia 0 416 312 4 43 0 15,102 1,671 Wisconsin 0 416 312 6 65 0 23,069 2,700 Wyoming 0 416 312 14 130 0 46,568 5,902 Puerto Rico 0 416 312 58 524 0 187,145 23,937 Other 0 416 312 n/a n/a 0 0 0 Total, US 1,923 18,591 0 6,595,136

1 Based on the trend of applicator numbers during th e period 2008 - 2013, these states are not likely to create the private general fumigation category.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing private fumigation applic ators in states that newly impose the private general fumigation cat egory must become certified, along with all new private fumigation applicators. In subsequent years, the additi onal cost of general fumigation certification is borne only by new private applicators; costs would remain constant thereafter. The PV of costs under the proposal , at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 In this case, while the number of first-tim e fumigation applicator s is assumed to be constant over time, existing fumigation applicat ors will only need to obtain certification once, when the rule is implemented. EPA a ssumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Cert-09; Pri vate Applicators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) All jurisdictions 10,911 0 10,911

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Per fumigation applicator incremental cost = NIC (U.S., annualized value) ÷ (sum of N 1st
time + N Xst for all regions)

 3% discount rate used for PV and annualized value

Table: Private Cert-09; Pr ivate Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 10,911 0 10,911 U.S. (annualized value) 1,242 0 1,242 Per fumigation applicator incremental cost 0.061

2.2.3.5 Private Cert-09: Develop New Private Ge neral Fumigation Category Exam or 8-hour Training

Costs are identical to those for “Private Ce rt-08: Develop New Priv ate General Fumigation Category Exam or 4-hour tr aining” in section 2.2.3.2.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

2.2.3.6 Private Cert-09: Administer New Private General fumigation Category Exam or 8- hour Training
Proctoring costs for Private Cert -09 are identical to those for Private Cert-08 in section 2.2.3.3 because the exam taking time is the same (i.e., one hour) for a 4-hour or an 8-hour exam. Thus, it would take one hour of a Jr. Technician’s time to proctor either of these exams. A 4-hour exam will take a private applicat or 3 hours of preparation and 1 hour to take the exam, for a total of 4 hours, and an 8-hour exam would take a priv ate applicator 7 hours to prepare and 1 hour to take the exam, for a total of 8 hours.

Private Soil Fumigation and N on-Soil Fumigation Applications
An alternative approach to a new general fumi gation private certification category, which would allow both soil and non-soil fumigation uses afte r certification in the single category, is to require certification in separa te soil fumigation and non-soil fu migation categories in order for private applicators to apply RUPs with the resp ective application methods . Private applicators could become certified in either , or both, of these potential ne w categories, depending on the fumigant uses they wish to uti lize. Therefore, this approach essentially entails two separate potential requirements: a new private soil fu migation category, and a new private non-soil fumigation category.

2.2.4 Private Soil Fumigation Applications

Following requirements on existing soil fumigant product labels would effectively satisfy certification requirements for privat e applicators for the potential soil fumigation category. It is a violation of Federal law to use a pesticide in a manner inconsistent with its labeling. Therefore, private applicators who use soil fumi gants are already in full compliance with the potential new soil fumigation catego ry in all jurisdictions. There would be zero incremental cost of establishing the Federal soil fumigation catego ry, therefore, no analysis was conducted for this potential requirement.

2.2.5 Private Non-Soil Fumigation Applications

Step 1 - Calculate Baseline Costs per Private App licator for Initial Certification in Non-Soil Fumigation Category
Although there is currently no fede ral non-soil fumigation certifica tion category, 8 states require non-soil fumigation category certifi cation in order for private a pplicators to apply RUPs by nonsoil fumigation. These states require private a pplicators to pass a non- soil fumigation category exam for initial certification in the category. We assume that the standards for these exams, as*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

well as the time and cost necessary to prepare for a nd take the exams, is equi valent to that of the standards of the potential requirement for a ne w non-soil fumigation category, that is, the exam takes 1 hour to take plus 3 hours of preparation time, or 4 hours total.

Baseline Cost per Private Applicator for Initial Certification in Non-soil Fumigation Category; 8 States Currently Requiring Non-soil Fumigation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) Non-soil fumigation category certification requirement 51.96 4 1 208

Total 208

The remaining 42 states, Puerto Rico, and “Other ,” do not require or offer a non-soil fumigation category certification for private applicators. Although some private app licators apply RUPs by non-soil fumigation in these jurisdic tions, the baseline cost is zero.

42 States, Puerto Rico, and “Other” Currentl y With No Non-soil Fumigation Category Certification Requirement
Non-soil fumigation Category Certification Requirement:

 None Assumption:

 Some private applicators in jurisdictions without a non-soil fumigation category already apply RUPs by non-soil fumigation, without cost for a non-soil fumigation category certification.

Table: Private Cert-10; Step 1; Private Applicators; Baseline Cost per Private Applicator for Initial Certification in Non-soil Fumigation Category; 42 States, Puerto Rico, and Other Currently Not Requiring Non-soil Fumigation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no non-soil fumigation category certification requirement 51.96 0 0 0

2.2.5.1 Private Cert-10: New Private Non-soil Fumigation Category, Exam or 4-hour Training

Step 2 - Calculate Costs of Potential Requirement per Private Applicator Certifying in Nonsoil Fumigation Category*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

In jurisdictions currently without a non-soil fu migation certification category, there are some private applicators who apply RUPs by non-soil fumi gation (which is legal). Of these, some have been applying RUPs by non-soil fumigation fo r more than a year. Though not certified in the non-soil fumigation category, we will refe r to these as “existing non-soil fumigation applicators.” Also in those jurisdictions, each ye ar some private applicators start applying RUPs by non-soil fumigation for the first time, referred to here as “first-time non-soil fumigation applicators.”
Since initial certification only o ccurs once, in the 8 states that require non-soil fumigation category certification, those appli cators already certified in the non-soil fumigation category are not applicable to this potential requirement. They are certified fumi gation applicators, not “existing non-soil fumigation app licators.” However, in thes e 8 states with the non-soil fumigation category, there are pr ivate applicators that seek certification in the non-soil fumigation category for the first time in a given year . They are considered here as an additional group of “first-time non-soil fumigation applicators.”
Non-soil fumigation category certification potential requirement:

 Private applicators must pass non-soil fumigation category ex am, or take 4-hour training Definitions:

 Existing non-soil fumigation applicators: Pr ivate applicators who have been applying RUPs by non-soil fumigation for more than one year, in jurisdictions that do not require certification in a non-soil fumigation category.

 First-time non-soil fumigation applicators:

o Private applicators who begin applying RUPs by non-soil fumigation for the first time in a given year, in jurisdictions th at do not require certif ication in a non-soil fumigation category; and

o Private applicators who seek certification in the non-soil fumigation category for the first time in a given year, in states that currently require certification in the non-soil fumigation category. Assumptions:

 Those taking the non-soil fumigation category exam are already pr ivate applicators.

 For first-time non-soil fumigation applicators, the exam takes 1 hour to take plus 3 hours of preparation time, or 4 hours total.

 For existing non-soil fumigation applicators, th e exam takes 1 hour to take plus 2 hours of preparation time, or 3 hours total. Existing non-soil fumigation applicators are assumed to take less time to prepare since they have already acquired knowledge and experience in fumigation application.

 The wage rate for private applicat ors is $51.96 [insert source and year]*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Cert-10; Private Applicators; Step 2; Cost of Po tential Requirement per Private Applicator Initially Certifyi ng in Non-soil Fumigation Category

Action Wage ($) Time (hours) Frequency Cost ($) First-time non-soil fumigation applicator Prepare and take nonsoil fumigation category exam 51.96 4 1 208

Existing non-soil fumigation applicator Prepare and take nonsoil fumigation category exam 51.96 3 1 156

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per private applicator in itially certifying in the non-soil fumigation category ( cost r,i, a B ) is presented in Step 1. To avoi d the appearance of cost-savings, the baseline cost in jurisdictions whose re quirements meet or exceed the option are constrained to equal the cost of the option.

 The cost per first-time non-soil fumigation ap plicator of the potential requirement ( cost r,i,1st P ) is the cost under the potential requirement per private applicator initially certifying in the non-soil fumigation category, in jurisdictions both with and without a current non-soil fumigation certificati on category, presented in Step 2.

 The cost per existing non-soil fumigation ap plicator of the potential requirement ( cost r,i,Xst P ) is the cost under the potential requirement per existing non-soil fumigation applicator, in jurisdic tions not currently requiring priv ate certification in a non-soil fumigation category.

 N 1st = number of “first time fumigation applicators.” As defined under Step 2, this applies to both:

o Private applicators who begin applying RUPs by non-soil fumigation for the first time in a given year, in jurisdictions th at do not require certif ication in a non-soil fumigation category; and

o Private applicators who seek certification in the non-soil fumigation category for the first time in a given year, in states that currently require certification in the non-soil fumigation category.

 N Xst = number of existing non-soil fumigation app licators. This applies only to existing non-soil fumigation applicators, as defined under Step 2, for jurisdictions not currently requiring private certif ication in a non-soil fumigation category.

 There are no data on the numb er of existing or first-time non-soil fumigation applicators in regions that do not currently require non- soil fumigation category certification. EPA has estimated the number of existing and fi rst-time non-soil fumigation applicators in these regions, using data on non-soil fumigation applicator certificati ons in the 8 states that certify in the category, as well as other data correlati ons among private applicators in those states. See Chapter 3.3.1*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 In the 8 states with a private non-soil fumi gation certification category, state data on the number of private applicator s who are certified in the non- soil fumigation category for the first time each year, are obtained from the CPARD database (see Chapter 3, Section 3.3)

 The baseline regional cost (RC B ) is the current total annua l regional cost for initial certification of private applicators in the non-soil fumigation category.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for private applicators, of certif ication in the non-soil fumigation category under the potential requirement.

 Existing non-soil fumigation applicators, in ju risdictions not currently requiring non-soil fumigation category certificati on, would all become certified in the non-soil fumigation category one time only, in year three, when th e rule would essentially become effective.

 The same number of first-time non-soil fumiga tion applicators would become certified in the non-soil fumigation category annu ally, starting in year three. This applies to first-time non-soil fumigation applicators both in ju risdictions not currently requiring non-soil fumigation category certifi cation, as well as in th e 8 states that do.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Private Cert-10; Pr ivate Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Certification of Private Applicators in Non-soil Fumigation Category

Region cost r,i, a B cost r,i,1st P

cost r,i,Xst P N 1st N Xst RC B RC t=3 P RC t>3 P
($) ($) ($) ($) ($) ($) Alabama 0 208 156 2 31 0 5,348 515 Alaska 0 208 156 n/a 1 n/a 0 0 0 Arizona 208 208 156 2 29 474 474 474 Arkansas 0 208 156 7 85 0 14,663 1,413 California 0 208 156 27 332 0 57,272 5,520 Colorado 0 208 156 5 66 0 11,385 1,097 Connecticut 0 208 156 0 2 0 345 33 Delaware 0 208 156 1 10 0 1,725 166 Florida 0 208 156 46 571 0 98,500 9,494 Georgia 0 208 156 3 34 0 5,865 565 Hawaii 0 208 156 2 21 0 3,623 349 Idaho 0 208 156 2 22 0 3,795 366*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Illinois 0 208 156 2 20 0 3,450 333 Indiana 0 208 156 3 33 0 5,693 549 Iowa 208 208 156 4 53 887 887 887 Kansas 0 208 156 5 57 0 9,833 948 Kentucky 0 208 156 4 50 0 8,625 831 Louisiana 0 208 156 4 56 0 9,660 931 Maine 0 208 156 1 8 0 1,380 133 Maryland 0 208 156 10 123 0 21,218 2,045 Massachusetts 0 208 156 0 3 0 518 50 Michigan 0 208 156 3 37 0 6,383 615 Minnesota 208 208 156 3 39 648 648 648 Mississippi 0 208 156 3 39 0 6,728 648 Missouri 0 208 156 3 38 0 6,555 632 Montana 0 208 156 n/a n/a 0 0 0 Nebraska 0 208 156 3 41 0 7,073 682 Nevada 208 208 156 5 60 992 992 992 New Hampshire 0 208 156 0 1 0 173 17 New Jersey 0 208 156 3 42 0 7,245 698 New Mexico 0 208 156 7 90 0 15,525 1,496 New York 0 208 156 5 60 0 10,350 998 North Carolina 0 208 156 8 105 0 18,113 1,746 North Dakota 208 208 156 80 1,005 16,716 16,716 16,716 Ohio 208 208 156 2 29 482 482 482 Oklahoma 0 208 156 5 67 0 11,558 1,114 Oregon 0 208 156 5 60 0 10,350 998 Pennsylvania 208 208 156 13 165 2,743 2,743 2,743 Rhode Island 0 208 156 0 1 0 173 17 South Carolina 0 208 156 9 114 0 19,666 1,895 South Dakota 0 208 156 2 26 0 4,485 432 Tennessee 0 208 156 2 26 0 4,485 432 Texas 0 208 156 7 93 0 16,043 1,546 Utah 208 208 156 5 60 995 995 995 Vermont 0 208 156 0 0 0 0 0 Virginia 0 208 156 9 113 0 19,493 1,879 Washington 0 208 156 7 92 0 15,870 1,530 West Virginia 0 208 156 2 24 0 4,140 399 Wisconsin 0 208 156 2 23 0 3,968 382*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Wyoming 0 208 156 0 5 0 863 83 Puerto Rico 0 208 156 n/a n/a 0 0 0 Other 0 208 156 n/a n/a 0 0 0 Total, US 325 4,061 23,937 476,072

1 Based on the trend of applicator numbers during th e period 2008 - 2013, these states are not likely to create the private non-soil fumigation category.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing private fumigation applic ators in states that newly impose the private non-soil fumigation cat egory must become certified, along with all new private fumigation applicators. In subsequent years, the addi tional cost of non-soil fumigation certification is borne only by new private applicators; costs would remain constant thereafter. The PV of costs under the proposal , at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 In this case, while the number of first-tim e non-soil fumigation applic ators in the regions is assumed to be constant over time, ex isting non-soil fumigation applicators in jurisdictions without a category will only need to obtain certif ication once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Cert-10; Pri vate Applicators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) 42 States, Puerto Rico, & Other 682 0 682 Arizona 4 4 0 Iowa 8 8 0 Minnesota 6 6 0 Nevada 9 9 0 North Dakota 147 147 0 Ohio 4 4 0 Pennsylvania 24 24 0 Utah 9 9 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Per fumigation applicator incremental cost = NIC (U.S., annualized value) ÷ (sum of N 1st
time + N Xst for all regions)

 3% discount rate used for PV and annualized value

Table: Private Cert-10; Pr ivate Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 892 210 682 U.S. (annualized value) 102 24 78 Per fumigation applicator incremental cost 0.027

Step 1 - Calculate Baseline Costs per Private App licator for Initial Certification in Non-Soil Fumigation Category*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Although there is currently no fede ral non-soil fumigation certifica tion category, 8 states require non-soil fumigation category certifi cation in order for private a pplicators to apply RUPs by nonsoil fumigation. These states require private a pplicators to pass a non- soil fumigation category exam for initial certification in the category. We assume that the standards for these exams, as well as the time and cost necessary to prepare for a nd take the exams, is equi valent to that of the standards of the potential requirement for a ne w non-soil fumigation category, that is, the exam takes 1 hour to take plus 7 hours of preparation time, or 8 hours total.

Table: Private Cert-11; Step 1; Private Applicators; Baseline Cost per Private Applicator for Initial Certification in Non-soil Fumigation Category; 8 States Currently Requiring Non-soil Fumigation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) Non-soil fumigation category certification requirement 51.96 8 1 416

Total 416

The remaining 42 states, Puerto Rico, and “Other ,” do not require or offer a non-soil fumigation category certification for private applicators. Although some private app licators apply RUPs by non-soil fumigation in these jurisdic tions, the baseline cost is zero.

42 States, Puerto Rico, and “Other” Currentl y With No Non-soil Fumigation Category Certification Requirement Non-soil fumigation Category Certification Requirement:

 None Assumption:

 Some private applicators in jurisdictions without a non-soil fumigation category already apply RUPs by non-soil fumigation, without cost for a non-soil fumigation category certification.

Table: Private Cert-11; Step 1; Private Applicators; Baseline Cost per Private Applicator for Initial Certification in Non-soil Fumigation Category; 42 States, Puerto Rico, and Other Currently Not Requiring Non-soil Fumigation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no non-soil fumigation category certification requirement 51.96 0 0 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

2.2.5.2 Private Cert-10: Develop New Private Non- soil Fumigation Category Exam or 4-hour Training

EPA assumes that the cost of developing 4-hour or 8- hour training is the same. EPA further assumes that the cost of developing a training of various length or an exam is the same. Since the only difference between Privat e Cert-10 and Private Cert-11 is the requirement for 4-hour, or 8-hour training, respectively, (both have the exam option) the analysis below applies equally to both potential requirements, a nd is presented only once.

Step 2 - Calculate Costs per Jurisdiction of Potential Requirement

Eight states (AZ, IA, MN, NV, ND, OH, PA , & UT) require non-soil fumigation category certification in order for privat e applicators to apply RUPs by non-soil fumigation. These states require private applicators to pa ss a non-soil fumigation category exam for initial ce rtification in the category. They already have the exam, so in cur no cost to develop it due to Private Cert-10 or -11.

The remaining 42 states, Puerto Rico, and Othe r do not offer or require non-soil fumigation category certification for private applicators.

Jurisdictional action necessary to implement potential requirement:

 Develop category-specific exam or training ma terial within two year s of promulgation of final rule Assumptions:

 It takes a Jr. Technician 250 hour s to develop either an exam or training materials for a category

 The opportunity cost of the responsible staff is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

 EPA assumes all jurisdicti ons will develop exams

 Development of materials is done once, with labor and cost spread over first two years

Table: Private Cert-10; Step 2; Jurisdictions; Cost per Jurisdiction to Develop Material s to Implement Potential Requirement; Develop Non-Soil Fumigation Category Exam

Action Wage ($/hour) Time (hours) Frequency Cost ($) Develop category exam 39.44 250 0.50 4,930 Total 4,930

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per jurisdiction for developing the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements meet or exceed the option are constrained to e qual the cost of the option.

 The cost per jurisdiction of developing the exam for implementation of the potential requirement ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional cost of developing the exam

 The regional cost of the potential requirement (RC P ) is the total annual jurisdictional cost of developing the exam

 Each jurisdiction would develop one exam for the non-soil fumigation category, in the first two years following promulgation of the final rule, i.e., cost r,i, a P = RC P for each jurisdiction

 N Jur is the number of jurisdictions

 The “n/a” means that for these states the estimated number of applicators doing non-soil fumigation application is zero in recent years. Therefore, EPA assumes that these states will not create this category, thus no need to develop an exam

Given the above: RC B = cost r,i, a B x N Jur RC P = cost r,i, a P x N Jur
Values are presented in the table below.

Table: Private Cert-10; Jurisdictions; Step 3; Total Annual Baseline and Potential Requi rement Costs for Developing Non-Soil Fumigation Category Exam for Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P

($) N Jur RC B ($) RC P ($) 8 jurisdictions with existing exam 0 0 8 0 0

Alabama 0 4,930 1 0 4,930 Alaska n/a 1 n/a n/a n/a n/a Arkansas 0 4,930 1 0 4,930 California 0 4,930 1 0 4,930 Colorado 0 4,930 1 0 4,930 Connecticut 0 4,930 1 0 4,930 Delaware 0 4,930 1 0 4,930 Florida 0 4,930 1 0 4,930 Georgia 0 4,930 1 0 4,930 Hawaii 0 4,930 1 0 4,930 Idaho 0 4,930 1 0 4,930*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Illinois 0 4,930 1 0 4,930 Indiana 0 4,930 1 0 4,930 Kansas 0 4,930 1 0 4,930 Kentucky 0 4,930 1 0 4,930 Louisiana 0 4,930 1 0 4,930 Maine 0 4,930 1 0 4,930 Maryland 0 4,930 1 0 4,930 Massachusetts 0 4,930 1 0 4,930 Michigan 0 4,930 1 0 4,930 Mississippi 0 4,930 1 0 4,930 Missouri 0 4,930 1 0 4,930 Montana n/a n/a n/a n/a n/a Nebraska 0 4,930 1 0 4,930 New Hampshire 0 4,930 1 0 4,930 New Jersey 0 4,930 1 0 4,930 New Mexico 0 4,930 1 0 4,930 New York 0 4,930 1 0 4,930 North Carolina 0 4,930 1 0 4,930 Oklahoma 0 4,930 1 0 4,930 Oregon 0 4,930 1 0 4,930 Rhode Island 0 4,930 1 0 4,930 South Carolina 0 4,930 1 0 4,930 South Dakota 0 4,930 1 0 4,930 Tennessee 0 4,930 1 0 4,930 Texas 0 4,930 1 0 4,930 Vermont 0 4,930 1 0 4,930 Virginia 0 4,930 1 0 4,930 Washington 0 4,930 1 0 4,930 West Virginia 0 4,930 1 0 4,930 Wisconsin 0 4,930 1 0 4,930 Wyoming 0 4,930 1 0 4,930 Puerto Rico n/a n/a n/a n/a n/a Other n/a n/a n/a n/a n/a Total, U.S. 48 0 197,200
1 The "n/a" states currently do not have a non-soil fumigation cate gory, and based on the applicator number data and trends in recen t years (CPARD, 2013), EPA assumed that these states are not likely to create a non-soil fumigation category under the proposed rule.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions and develop exam and/or training materials in lin e with the proposed requirements. There would be no further costs. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ௉ ௧ୀଵ ∙ 1.97

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Regional Baseline Cost

 PV IC = Present Value of the Incremental Cost

 PV IC = PV RC P
– PV RC B

Table: Private Cert-10; Ju risdictions; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1000) PV RC B ($1000) PV IC ($1000) 8 jurisdictions with existing exam 0 0 0

Alabama 10 0 10 Alaska n/a 1 n/a n/a Arkansas 10 0 10 California 10 0 10 Colorado 10 0 10 Connecticut 10 0 10 Delaware 10 0 10 Florida 10 0 10 Georgia 10 0 10 Hawaii 10 0 10 Idaho 10 0 10 Illinois 10 0 10*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Indiana 10 0 10 Kansas 10 0 10 Kentucky 10 0 10 Louisiana 10 0 10 Maine 10 0 10 Maryland 10 0 10 Massachusetts 10 0 10 Michigan 10 0 10 Mississippi 10 0 10 Missouri 10 0 10 Montana n/a n/a n/a Nebraska 10 0 10 New Hampshire 10 0 10 New Jersey 10 0 10 New Mexico 10 0 10 New York 10 0 10 North Carolina 10 0 10 Oklahoma 10 0 10 Oregon 10 0 10 Rhode Island 10 0 10 South Carolina 10 0 10 South Dakota 10 0 10 Tennessee 10 0 10 Texas 10 0 10 Vermont 10 0 10 Virginia 10 0 10 Washington 10 0 10 West Virginia 10 0 10 Wisconsin 10 0 10 Wyoming 10 0 10 Puerto Rico n/a n/a n/a Other n/a n/a n/a
1 The "n/a" states currently do not have a non-soil fumigation cate gory, and based on the applicator number data and trends in recen t years (CPARD, 2013), EPA assumed that these states are not likely to create a non-soil fumigation category under the proposed rule.

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Private Cert-10; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 389 0 389 U.S. (annualized value) 44 0 44

State’s Proctoring Costs: Privat e Applicator Application Method- Specific Category Certification
Although there are currently no federal private applicator certifica tion categories based on application method, some states do require certification in one or more of the application method-specific categories among those considered in the potential requir ements below. For private certification categories considered as pote ntial requirements (aerial, chemigation, general fumigation, soil fumigation, and non-soil fumigation) , there are different jurisdictions that currently require each. Jurisdicti ons that do not require a particular category have zero baseline cost for that category. Jurisdicti ons that require a given category in the baseline are assumed to be in compliance, and have the state costs of exam administration that are at least equal to that of the proposed requirement.
For private applicators, the jurisdictions with one or more of the application method-specific categories in the baseline require certification by passing a written exam. The proposed rule, however, allows certification in these categories by either passing a written exam or completing a training program. However, EPA assumes that all jurisdictions with one or more of the application method-specific categories will cont inue their baseline pr actice and certify their private applicators by a written ex am under the new rule as well. For the jurisdictions that do not have the application method-specific categories in the baseline, there is no information on how (i.e., by exam or training) each jurisdiction woul d certify their private applicators under the proposed rule, and therefore, EPA assumes that th ey will also certify their private applicators by exam under the proposed rule.

2.2.5.3 Private Cert-10: Administer New Private Non-Soil Fumigation Category Exam or 4- hour Training

Step 1 - Calculate Baseline Costs

Jurisdictions that Require Certification in No n-soil fumigation Category in the Baseline*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

In the baseline, 8 states (AZ, IA, MN, NV, ND, OH, PA, & UT) certify non-soil fumigation category by exam, and all except MN proctor the exam.

Assumptions:

 Currently, AZ, IA, NV, ND, OH, PA, & UT are in compliance with Private Cert-10, proctoring their certification exams.

 It takes a Jr. Technician 1 hour to proctor a group of 50 examinees

 Proctoring of certification exam is done every year for the 10-year horizon for the first time applicators

 The wage rate for a Junior Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Private Cert-10; Step 1; Baseline Cost per Applicator to Proctor Priv ate Non-soil fumigation Category Certification Exam; States Currently Requiring Non-so il fumigation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) Proctor category exam 39.44 1 0.02 0.79 Total 0.79

Jurisdictions that do Not Require Certificat ion in Non-soil fumigation Category in the Baseline

The remaining 42 states, Puerto Rico, & Other do not require non-soil cate gory certification in the baseline

Table: Private Cert-10; Step 1; Baseline Cost per Applicator to Proctor Priv ate Non-soil fumigation Category Certification Exam; Jurisdictions Currently Not Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no category certification requirement 39.44 0 0 0.00

Total 0.00

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Cert-10; Step 2; Cost per Applicator to Proctor Private No n-soil fumigation Categor y Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($) Proctor category exam 39.44 1 0.02 0.79 Total 0.79

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N 1st = number of “first time non-soil fumigati on applicators.” This applies to both:

o Private applicators who begin applying RUPs by non-soil fumigation for the first time in a given year, in jurisdictions that do not require certif ication in an non-soil fumigation category; and

o Private applicators who seek certification in the non-soil fumigation category for the first time in a given year, in states that currently require certification in the non-soil fumigation category.

 N Xst = number of existing non-soil fumigation app licators. This applies only to existing non-soil fumigation applicators for jurisd ictions not currently requiring private certification in a non-soil fumigation category.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Private Cert-10; Step 3; Total Annual Baseline and Potential Requireme nt Costs for Proctoring Non-soil fumigation Category Exam for Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i,1st P ($) cost r,i,Xst P ($) N 1st N Xst RC B ($) RC t=3 P ($) RC t>3 P ($)

Alabama 0 0.79 0.79 2.5 31.0 0.0 26.4 2.0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Alaska 0 0.79 0.79 n/a 1 n/a n/a n/a n/a Arizona 0.79 0.79 0 2.3 28.5 1.8 1.8 1.8 Arkansas 0 0.79 0.79 6.8 85.0 0.0 72.4 5.4 California 0 0.79 0.79 26.6 332.0 0.0 282.8 21.0 Colorado 0 0.79 0.79 5.3 66.0 0.0 56.2 4.2 Connecticut 0 0.79 0.79 0.2 2.0 0.0 1.7 0.1 Delaware 0 0.79 0.79 0.8 10.0 0.0 8.5 0.6 Florida 0 0.79 0.79 45.7 571.0 0.0 486.4 36.0 Georgia 0 0.79 0.79 2.7 34.0 0.0 29.0 2.1 Hawaii 0 0.79 0.79 1.7 21.0 0.0 17.9 1.3 Idaho 0 0.79 0.79 1.8 22.0 0.0 18.7 1.4 Illinois 0 0.79 0.79 1.6 20.0 0.0 17.0 1.3 Indiana 0 0.79 0.79 2.6 33.0 0.0 28.1 2.1 Iowa 0.79 0.79 0 4.3 53.3 3.4 3.4 3.4 Kansas 0 0.79 0.79 4.6 57.0 0.0 48.6 3.6 Kentucky 0 0.79 0.79 4.0 50.0 0.0 42.6 3.2 Louisiana 0 0.79 0.79 4.5 56.0 0.0 47.7 3.5 Maine 0 0.79 0.79 0.6 8.0 0.0 6.8 0.5 Maryland 0 0.79 0.79 9.8 123.0 0.0 104.8 7.8 Massachusetts 0 0.79 0.79 0.2 3.0 0.0 2.6 0.2 Michigan 0 0.79 0.79 3.0 37.0 0.0 31.5 2.3 Minnesota 0 0.79 0.79 3.1 39.0 0.0 33.2 2.5 Mississippi 0 0.79 0.79 3.1 39.0 0.0 33.2 2.5 Missouri 0 0.79 0.79 3.0 38.0 0.0 32.4 2.4 Montana 0 0.79 0.79 n/a n/a n/a n/a n/a Nebraska 0 0.79 0.79 3.3 41.0 0.0 34.9 2.6 Nevada 0.79 0.79 0 4.8 59.7 3.8 3.8 3.8 New Hampshire 0 0.79 0.79 0.1 1.0 0.0 0.9 0.1 New Jersey 0 0.79 0.79 3.4 42.0 0.0 35.8 2.7 New Mexico 0 0.79 0.79 7.2 90.0 0.0 76.7 5.7 New York 0 0.79 0.79 4.8 60.0 0.0 51.1 3.8 North Carolina 0 0.79 0.79 8.4 105.0 0.0 89.4 6.6 North Dakota 0.79 0.79 0 80.4 1005.3 63.4 63.4 63.4 Ohio 0.79 0.79 0 2.3 29.0 1.8 1.8 1.8 Oklahoma 0 0.79 0.79 5.4 67.0 0.0 57.1 4.2 Oregon 0 0.79 0.79 4.8 60.0 0.0 51.1 3.8 Pennsylvania 0.79 0.79 0 13.2 165.0 10.4 10.4 10.4 Rhode Island 0 0.79 0.79 0.1 1.0 0.0 0.9 0.1 South Carolina 0 0.79 0.79 9.1 114.0 0.0 97.1 7.2*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

South Dakota 0 0.79 0.79 2.1 26.0 0.0 22.1 1.6 Tennessee 0 0.79 0.79 2.1 26.0 0.0 22.1 1.6 Texas 0 0.79 0.79 7.4 93.0 0.0 79.2 5.9 Utah 0.79 0.79 0 4.8 59.8 3.8 3.8 3.8 Vermont 0 0.79 0.79 0.0 0.0 0.0 0.0 0.0 Virginia 0 0.79 0.79 9.0 113.0 0.0 96.3 7.1 Washington 0 0.79 0.79 7.4 92.0 0.0 78.4 5.8 West Virginia 0 0.79 0.79 1.9 24.0 0.0 20.4 1.5 Wisconsin 0 0.79 0.79 1.8 23.0 0.0 19.6 1.5 Wyoming 0 0.79 0.79 0.4 5.0 0.0 4.3 0.3 Puerto Rico 0 0.79 0.79 n/a n/a n/a n/a n/a Other 0 0.79 0.79 n/a n/a n/a n/a n/a Total, U.S. 325 4,061 88 2,354

1 The "n/a" states currently do not have a non-soil fumigation category, and based on the applicator number data and trends in recent years (CPARD, 2013), EPA assumes that these states are not likely to create a non-soil fumigation category under the proposed rule.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing private no n-soil fumigation applicators in states that newly impose the private non-soil fumigation category must become certified, along with all new private non-soil fumigation applicators. In subsequent years, the additional cost of non-soil fumigation certification is borne only by new private applicators; costs would remain constant thereafter. The PV of costs unde r the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-tim e non-soil fumigation applic ators in the regions is assumed to be constant over time, ex isting non-soil fumigation applicators in jurisdictions without a category will only need to obtain certif ication once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Cert-10; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000)

Alabama 0.036 0.000 0.036 Alaska n/a 1 n/a n/a Arizona 0.016 0.016 0.000 Arkansas 0.100 0.000 0.100 California 0.390 0.000 0.390 Colorado 0.077 0.000 0.077 Connecticut 0.002 0.000 0.002 Delaware 0.012 0.000 0.012 Florida 0.670 0.000 0.670 Georgia 0.040 0.000 0.040 Hawaii 0.025 0.000 0.025 Idaho 0.026 0.000 0.026 Illinois 0.023 0.000 0.023 Indiana 0.039 0.000 0.039 Iowa 0.030 0.030 0.000 Kansas 0.067 0.000 0.067 Kentucky 0.059 0.000 0.059 Louisiana 0.066 0.000 0.066 Maine 0.009 0.000 0.009 Maryland 0.144 0.000 0.144 Massachusetts 0.004 0.000 0.004*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Michigan 0.043 0.000 0.043 Minnesota 0.046 0.000 0.046 Mississippi 0.046 0.000 0.046 Missouri 0.045 0.000 0.045 Montana n/a n/a n/a Nebraska 0.048 0.000 0.048 Nevada 0.033 0.033 0.000 New Hampshire 0.001 0.000 0.001 New Jersey 0.049 0.000 0.049 New Mexico 0.106 0.000 0.106 New York 0.070 0.000 0.070 North Carolina 0.123 0.000 0.123 North Dakota 0.557 0.557 0.000 Ohio 0.016 0.016 0.000 Oklahoma 0.079 0.000 0.079 Oregon 0.070 0.000 0.070 Pennsylvania 0.091 0.091 0.000 Rhode Island 0.001 0.000 0.001 South Carolina 0.134 0.000 0.134 South Dakota 0.031 0.000 0.031 Tennessee 0.031 0.000 0.031 Texas 0.109 0.000 0.109 Utah 0.033 0.033 0.000 Vermont 0.0 0.0 0.0 Virginia 0.133 0.000 0.133 Washington 0.108 0.000 0.108 West Virginia 0.028 0.000 0.028 Wisconsin 0.027 0.000 0.027 Wyoming 0.006 0.000 0.006 Puerto Rico n/a n/a n/a Other n/a n/a n/a

1 The "n/a" states currently do not have a non-soil fumigation category, and based on the applicator number data and trends in recent years (CPARD, 2013), EPA assumes that these states are not likely to create a non-soil fumigation category under the proposed rule.

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Private Cert-10; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 413 U.S. (annualized value) 0.44 0.09 0.36

2.2.5.4 Private Cert-11: New Private Non-soil Fumigation Category, Exam or 8-hour Training

Step 2 - Calculate Costs of Potential Requirement per Private Applicator Certifying in Nonsoil Fumigation Category
In jurisdictions currently without a non-soil fu migation certification category, there are some private applicators who apply RUPs by non-soil fumi gation (which is legal). Of these, some have been applying RUPs by non-soil fumigation fo r more than a year. Though not certified in the non-soil fumigation category, we will refe r to these as “existing non-soil fumigation applicators.” Also in those jurisdictions, each ye ar some private applicators start applying RUPs by non-soil fumigation for the first time, referred to here as “first-time non-soil fumigation applicators.”
Since initial certification only o ccurs once, in the 8 states that require non-soil fumigation category certification, those appli cators already certified in the non-soil fumigation category are not applicable to this potential requirement. They are certified fumi gation applicators, not “existing non-soil fumigation app licators.” However, in thes e 8 states with the non-soil fumigation category, there are pr ivate applicators that seek certification in the non-soil fumigation category for the first time in a given year . They are considered here as an additional group of “first-time non-soil fumigation applicators.”
Non-soil fumigation category certification potential requirement:

 Private applicators must pass non-soil fumigation category ex am, or take 8-hour training Definitions:

 Existing non-soil fumigation applicators: Pr ivate applicators who have been applying RUPs by non-soil fumigation for more than one year, in jurisdictions that do not require certification in a non-soil fumigation category.

 First-time non-soil fumigation applicators:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

o Private applicators who begin applying RUPs by non-soil fumigation for the first time in a given year, in jurisdictions th at do not require certif ication in a non-soil fumigation category; and

o Private applicators who seek certification in the non-soil fumigation category for the first time in a given year, in states that currently require certification in the non-soil fumigation category. Assumptions:

 Those taking the non-soil fumigation category exam are already pr ivate applicators.

 For first-time non-soil fumigation applicators, the exam takes 1 hour to take plus 7 hours of preparation time, or 8 hours total.

 For existing non-soil fumigation applicators, th e exam takes 1 hour to take plus 5 hours of preparation time, or 6 hours total. Existing non-soil fumigation applicators are assumed to take less time to prepare since they have already acquired knowledge and experience in fumigation application.

 The wage rate for private applicat ors is $51.96 [insert source and year]

Table: Private Cert-11; Private Applicators; Step 2; Cost of Po tential Requirement per Private Applicator Initially Certifyi ng in Non-soil Fumigation Category

Action Wage ($) Time (hours) Frequency Cost ($) First-time non-soil fumigation applicator Prepare and take nonsoil fumigation category exam 51.96 8 1 416

Existing non-soil fumigation applicator Prepare and take nonsoil fumigation category exam 51.96 6 1 312

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per private applicator in itially certifying in the non-soil fumigation category ( cost r,i, a B ) is presented in Step 1. To avoi d the appearance of cost-savings, the baseline cost in jurisdictions whose re quirements meet or exceed the option are constrained to equal the cost of the option.

 The cost per first-time non-soil fumigation ap plicator of the potential requirement ( cost r,i,1st P ) is the cost under the potential requirement per private applicator initially certifying in the non-soil fumigation category, in jurisdictions both with and without a current non-soil fumigation certificati on category, presented in Step 2.

 The cost per existing non-soil fumigation ap plicator of the potential requirement ( cost r,i,Xst P ) is the cost under the potential requirement per existing non-soil fumigation applicator, in jurisdic tions not currently requiring priv ate certification in a non-soil fumigation category.

 N 1st = number of “first time fumigation applicators.” As defined under Step 2, this applies to both:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

o Private applicators who begin applying RUPs by non-soil fumigation for the first time in a given year, in jurisdictions th at do not require certif ication in a non-soil fumigation category; and

o Private applicators who seek certification in the non-soil fumigation category for the first time in a given year, in states that currently require certification in the non-soil fumigation category.

 N Xst = number of existing non-soil fumigation app licators. This applies only to existing non-soil fumigation applicators, as defined under Step 2, for jurisdictions not currently requiring private certif ication in a non-soil fumigation category.

 There are no data on the numb er of existing or first-time non-soil fumigation applicators in regions that do not currently require non- soil fumigation category certification. EPA has estimated the number of existing and fi rst-time non-soil fumigation applicators in these regions, using data on non-soil fumigation applicator certificati ons in the 8 states that certify in the category, as well as other data correlati ons among private applicators in those states. See Chapter 3.3.1

 In the 8 states with a private non-soil fumi gation certification category, state data on the number of private applicator s who are certified in the non- soil fumigation category for the first time each year, are obtained from the CPARD database (see Chapter 3, Section 3.3)

 The baseline regional cost (RC B ) is the current total annua l regional cost for initial certification of private applicators in the non-soil fumigation category.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for private applicators, of certif ication in the non-soil fumigation category under the potential requirement.

 Existing non-soil fumigation applicators, in ju risdictions not currently requiring non-soil fumigation category certificati on, would all become certified in the non-soil fumigation category one time only, in year three, when th e rule would essentially become effective.

 The same number of first-time non-soil fumiga tion applicators would become certified in the non-soil fumigation category annu ally, starting in year three. This applies to first-time non-soil fumigation applicators both in ju risdictions not currently requiring non-soil fumigation category certifi cation, as well as in th e 8 states that do.

Given the above: RC B = cost r,i, a B x (N 1st + N Xst ) RC t=3 P = cost r,i,1st P x N 1st + cost r,i,Xst P x N Xst RC t>3 P = cost r,i,1st P x N 1st
Values are presented in the table below.

Table: Private Cert-11; Pr ivate Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Certification of Private Applicators in Non-soil Fumigation Category

Region cost r,i, a B cost r,i,1st P

cost r,i,Xst P N 1st N Xst RC B RC t=3 P RC t>3 P ($) ($) ($) ($) ($) ($)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Alabama 0 416 312 2 31 0 10,695 1,031 Alaska 0 416 312 n/a 1 n/a 0 0 0 Arizona 208 416 n/a 2 29 474 948 948 Arkansas 0 416 312 7 85 0 29,326 2,827 California 0 416 312 27 332 0 114,543 11,040 Colorado 0 416 312 5 66 0 22,771 2,195 Connecticut 0 416 312 0 2 0 690 67 Delaware 0 416 312 1 10 0 3,450 333 Florida 0 416 312 46 571 0 197,000 18,988 Georgia 0 416 312 3 34 0 11,730 1,131 Hawaii 0 416 312 2 21 0 7,245 698 Idaho 0 416 312 2 22 0 7,590 732 Illinois 0 416 312 2 20 0 6,900 665 Indiana 0 416 312 3 33 0 11,385 1,097 Iowa 208 416 n/a 4 53 887 1,774 1,774 Kansas 0 416 312 5 57 0 19,666 1,895 Kentucky 0 416 312 4 50 0 17,250 1,663 Louisiana 0 416 312 4 56 0 19,321 1,862 Maine 0 416 312 1 8 0 2,760 266 Maryland 0 416 312 10 123 0 42,436 4,090 Massachusetts 0 416 312 0 3 0 1,035 100 Michigan 0 416 312 3 37 0 12,765 1,230 Minnesota 208 416 n/a 3 39 648 1,297 1,297 Mississippi 0 416 312 3 39 0 13,455 1,297 Missouri 0 416 312 3 38 0 13,110 1,264 Montana 0 416 312 n/a n/a 0 0 0 Nebraska 0 416 312 3 41 0 14,145 1,363 Nevada 208 416 n/a 5 60 992 1,984 1,984 New Hampshire 0 416 312 0 1 0 345 33 New Jersey 0 416 312 3 42 0 14,490 1,397 New Mexico 0 416 312 7 90 0 31,051 2,993 New York 0 416 312 5 60 0 20,701 1,995 North Carolina 0 416 312 8 105 0 36,226 3,492 North Dakota 208 416 n/a 80 1,005 16,716 33,431 33,431 Ohio 208 416 n/a 2 29 482 964 964 Oklahoma 0 416 312 5 67 0 23,116 2,228 Oregon 0 416 312 5 60 0 20,701 1,995*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Pennsylvania 208 416 n/a 13 165 2,743 5,487 5,487 Rhode Island 0 416 312 0 1 0 345 33 South Carolina 0 416 312 9 114 0 39,331 3,791 South Dakota 0 416 312 2 26 0 8,970 865 Tennessee 0 416 312 2 26 0 8,970 865 Texas 0 416 312 7 93 0 32,086 3,093 Utah 208 416 n/a 5 60 995 1,990 1,990 Vermont 0 416 312 0 0 0 0 0 Virginia 0 416 312 9 113 0 38,986 3,758 Washington 0 416 312 7 92 0 31,741 3,059 West Virginia 0 416 312 2 24 0 8,280 798 Wisconsin 0 416 312 2 23 0 7,935 765 Wyoming 0 416 312 0 5 0 1,725 166 Puerto Rico 0 416 312 n/a n/a 0 0 0 Other 0 416 312 n/a n/a 0 0 0 Total, US 325 4,061 23,937 952,144

1 Based on the trend of applicator numbers during th e period 2008 - 2013, these states are not likely to create the private non-soil fumigation category.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing private fumigation applic ators in states that newly impose the private non-soil fumigation cat egory must become certified, along with all new private fumigation applicators. In subsequent years, the addi tional cost of non-soil fumigation certification is borne only by new private applicators; costs would remain constant thereafter. The PV of costs under the proposal , at a 3% discount rate, is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 In this case, while the number of first-tim e non-soil fumigation applic ators in the regions is assumed to be constant over time, ex isting non-soil fumigation applicators in jurisdictions without a category will only need to obtain certif ication once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Cert-11; Pri vate Applicators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 16 0 16 Alaska n/a n/a 0 Arizona 7 4 3 Arkansas 44 0 44 California 173 0 173 Colorado 34 0 34 Connecticut 1 0 1 Delaware 5 0 5 Florida 297 0 297 Georgia 18 0 18 Hawaii 11 0 11 Idaho 11 0 11 Illinois 10 0 10 Indiana 17 0 17 Iowa 14 8 6 Kansas 30 0 30 Kentucky 26 0 26 Louisiana 29 0 29 Maine 4 0 4 Maryland 64 0 64*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Massachusetts 2 0 2 Michigan 19 0 19 Minnesota 10 6 4 Mississippi 20 0 20 Missouri 20 0 20 Montana n/a n/a 0 Nebraska 21 0 21 Nevada 15 9 7 New Hampshire 1 0 1 New Jersey 22 0 22 New Mexico 47 0 47 New York 31 0 31 North Carolina 55 0 55 North Dakota 261 147 114 Ohio 8 4 3 Oklahoma 35 0 35 Oregon 31 0 31 Pennsylvania 43 24 19 Rhode Island 1 0 1 South Carolina 59 0 59 South Dakota 14 0 14 Tennessee 14 0 14 Texas 48 0 48 Utah 16 9 7 Vermont 0 0 0 Virginia 59 0 59 Washington 48 0 48 West Virginia 12 0 12 Wisconsin 12 0 12 Wyoming 3 0 3 Puerto Rico n/a n/a 0 Other n/a n/a 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Per fumigation applicator incremental cost = NIC (U.S., annualized value) ÷ (sum of N 1st
time + N Xst for all regions)

 3% discount rate used for PV and annualized value

Table: Private Cert-11; Pr ivate Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 1,738 210 1,527 U.S. (annualized value) 198 24 174 Per fumigation applicator incremental cost 0.061

2.2.5.5 Private Cert-11: Develop New Private Non-Soil Fumigation Category Exam or 8- hour Training

Costs are identical to those for “Private Ce rt-10: Develop New Priv ate Non-Soil Fumigation Category Exam or 4-hour tr aining” in section 2.2.5.2.

2.2.5.6 Private Cert-11: Administer New Private Non-Soil Fumigation Category Exam or 8- hour Training
Proctoring costs for Private Cert -11 are identical to those for Private Cert-10 in section 2.2.5.3 because the exam taking time is the same (i.e., one hour) for a 4-hour or an 8-hour exam. Thus, it would take one hour of a Jr. Technician’s time to proctor either of these exams. A 4-hour exam will take a private applicat or 3 hours of preparation and 1 hour to take the exam, for a total of 4 hours, and an 8-hour exam would take a priv ate applicator 7 hours to prepare and 1 hour to take the exam, for a total of 8 hours.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***



## 3 Standards for Supervision

3.1 Commercial Applicators

3.1.1 Competency Requirements

3.1.1.1 Comm Sup-01: Non-certified Applicators Complete Training or Pass Core Commercial Certification Exam

Step 1 - Calculate Baseline Costs per Applicator Applying RUPs Under the Supervision of a Commercial Applicator

There is currently no federal competency requ irement for non-certifie d applicators applying RUPs under the supervision (UTS) of a commercial applicator. This requirement is intended to address applicator competency before they are permitted to apply RUPs UTS of a commercial applicator. Some states (29) currently have requirements (t raining and/or exam) that meet or exceed the proposed training content, as specified below.

The remaining 21 states, Puerto Rico, and Ot her Jurisdictions, do not require noncertified applicator training or other dem onstration of competency, so ha ve zero baseline cost and would bear the full impact of these potential requirements as incremental cost.

29 States Currently in Compliance With Potential Competency Requirements

Competency Requirements:

 12 states require training only: CO, ID , KS, MD, MO, NE, NJ, NC, OH, PA, TX, WV

 10 states require passing the commercial core exam only: CT, IL, IN, IA, KY, LA, MA, NV, NM, OR

 7 states require both training and passing th e core exam: FL, MI, MS, MT, NH, NY, VA Assumptions:

 Training required by states is equivalent to, or in excess of, training in the potential requirements

 UTS applicators in these states meet or exceed the potential competency requirements, so are already in full compliance

 To avoid the appearance of cost-savings in Step 3, the baseline cost in jurisdictions whose requirements meet or exceed the option are constrained to e qual the cost of the option.

 A commercial applicator trains all of his s upervisees at the same time, so the average frequency of a commercial applicator’s provi sion of training, per UT S applicator, is the*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

number of UTS applicators divided by the num ber of commercial a pplicators, or about 0.38 (see EA chapter 3.3.2).

 The wage rate for non-certified applicator s applying RUPs under the supervision (UTS) of a commercial applicator is $18.34 per hour [insert source and year].

 The wage rate for commercial applicators is $21.49 per hour [insert source and year].

Table: Comm Sup-01; Step 1; Baseline Cost of Meeting Competency Re quirements, per Non-Certified Applicator Applying RUPs Under the Supervisio n of a Commercial Applicator; 29 States in Compliance With Competency Requirement for UTS Applicators Action Wage ($/hour) Time (hours) Frequency (per year, per UTS) Cost ($)

UTS applicator Receives training 18.34 1 1 18.34

Commercial applicator Trains UTS applicators 21.49 1 0.38 8.17

Total 26.51

21 States, Puerto Rico, and “Other” Currently With No Competency Requirement for UTS Applicators

Competency Requirement:

 None (for all states & jurisdictions not listed in the group of 29, above) Assumption:

 In the baseline for these jurisdictions, there is no requirement, so there is no time or cost for this activity.

Table: Comm Sup-01; Step 1; Baseline Cost of Meeting Competency Re quirements, per Non-Certified Applicator Applying RUPs Under the Supervisio n of a Commercial Applicator; 21 States, Puerto Rico, and Other Currently With No Competency Requirement for UTS Applicators

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no competency requirement 18.34 0 0 0

Total 0

Step 2 - Calculate Costs of Potential Requiremen t per Non-Certified Applicator Under the Supervision of a Commercial Applicator

Competency Requirement:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 UTS applicators must complete rule-speci fied training annually, or complete WPS handler training annuall y, or pass the commercial certi fication core exam once every three years Assumptions:

 All UTS applicators would use the option of a nnual WPS handler trai ning to satisfy the requirement

 WPS handler training takes 1 hour to complete, based on EPA experience

 Commercial applicators train all of their UTS supervisees at the same time, so the average frequency of a commercial applicator ’s provision of traini ng, per UTS applicator, is the number of UTS applicators divided by th e number of commerci al applicators, or about 0.38 (see EA chapter 3.3.2)

Table: Comm Sup-01; Employers of UTS Applicators; Step 2; Annual Cost of Potential Requirement per No n-Certified Applicator Applying RUPs Under the Supervision of a Commercial Applicator Action Wage ($/hour) Time (hours) Frequency (per year, per UTS) Cost ($)

UTS applicator Receive WPS handler training 18.34 1 1 18.34

Commercial applicator Train UTS applicators 21.49 1 0.38 8.17

Total 26.51

Step 3 – Estimate Regional Level Baseline and Compliance Costs

Terms and Definitions:

 UTS applicator: noncertified applicator w ho applies RUPs under the supervision of a commercial applicator

 N UTS trained is the number of noncertified applicators who apply RUPs under the supervision of existing commercial applicators
Assumptions:

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 Four (IA, MN, NH, SD) of the 21 states w ith no competency requirements specifically disallow application of RUPs by non-certified applicators. EPA assumes that they would continue this prohibition if the poten tial requirements became effective

 The baseline unit cost (UC B , or, cost r,i, a B ) is the annual baseline cost, per noncertified applicator applying RUPs UTS of a commercial applicator, presented in Step 1. To avoid the appearance of cost-savings, the baseline cost in jurisdictions whose requirements meet or exceed the option are constrained to equal the cost of the option*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The potential requirement unit cost (UC P , or, cost r,i, a P ) is the annual cost under the potential requirement, per noncertified applic ator applying RUPs under the supervision of a private applicator, presented in Step 2

 There are no data on the numb er of UTS applicators. EPA has estimated the number in each jurisdiction (see EA chapter 3.3.2)

 The baseline jurisdictional cost (RC B ) is the total annual ju risdictional cost for noncertified applicators who apply RU Ps UTS of commercial applicators

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost under the potential requirement for noncer tified applicators who apply RUPs UTS of commercial applicators

Given the above: RC B = cost r,i, a B x N UTS trained RC P = cost r,i, a P x N UTS trained
Values are presented in the table below.

Table: Comm Sup-01; Employers of UTS Applicators; Step 3; Total Annual Regional Baseline and Potential Requirement Costs for Applicators UTS of Commercia l Applicators; All Jurisdictions Region UC B ($) UC P ($) N UTS trained RC B ($) RC P ($) Alabama 0 27 9,035 0 239,488 Alaska 0 27 1,265 0 33,531 Arizona 0 27 13,384 0 354,766 Arkansas 0 27 7,121 0 188,754 California 0 27 73,702 0 1,953,585 Colorado 27 27 14,367 380,822 380,822 Connecticut 27 27 10,096 267,612 267,612 Delaware 0 27 5,437 0 144,117 Florida 27 27 65,193 1,728,053 1,728,053 Georgia 0 27 17,289 0 458,262 Hawaii 0 27 3,710 0 98,340 Idaho 27 27 10,735 284,536 284,536 Illinois 27 27 18,259 483,973 483,973 Indiana 27 27 26,531 703,250 703,250 Iowa 27 27 0 0 0 Kansas 27 27 15,443 409,330 409,330 Kentucky 27 27 27,907 739,723 739,723 Louisiana 27 27 8,861 234,876 234,876 Maine 0 27 2,828 0 74,948 Maryland 27 27 16,465 436,433 436,433*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Massachusetts 27 27 18,817 498,764 498,764 Michigan 27 27 38,410 1,018,123 1,018,123 Minnesota 0 27 0 0 0 Mississippi 27 27 5,710 151,353 151,353 Missouri 27 27 19,996 530,028 530,028 Montana 27 27 3,663 97,094 97,094 Nebraska 27 27 23,028 610,397 610,397 Nevada 27 27 7,617 201,888 201,888 New Hampshire 27 27 0 0 0 New Jersey 27 27 18,904 501,070 501,070 New Mexico 27 27 2,762 73,198 73,198 New York 27 27 52,958 1,403,743 1,403,743 North Carolina 27 27 51,036 1,352,784 1,352,784 North Dakota 0 27 13,381 0 354,686 Ohio 27 27 34,695 919,638 919,638 Oklahoma 0 27 27,005 0 715,801 Oregon 27 27 13,188 349,571 349,571 Pennsylvania 27 27 41,549 1,101,328 1,101,328 Rhode Island 0 27 3,035 0 80,448 South Carolina 0 27 8,723 0 231,205 South Dakota 0 27 0 0 0 Tennessee 0 27 23,325 0 618,269 Texas 27 27 55,148 1,461,780 1,461,780 Utah 0 27 10,167 0 269,494 Vermont 0 27 2,543 0 67,393 Virginia 27 27 21,550 571,220 571,220 Washington 0 27 43,030 0 1,140,584 West Virginia 27 27 4,451 117,981 117,981 Wisconsin 0 27 30,041 0 796,289 Wyoming 0 27 4,715 0 124,966 Puerto Rico 0 27 16,678 0 442,066 Other 0 27 3,531 0 93,595 Total 947,275

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third year, non-certified applic ators applying RUPs under the supervision of a commercial applicator will need to receive annual training. Costs would remain constant in subsequent years. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 In this case, the number of UTS applicators is assumed to remain constant. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Sup-01; Employers of UTS Applicators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 1,632 0 1,632 Alaska 229 0 229 Arizona 2,418 0 2,418 Arkansas 1,286 0 1,286 California 13,314 0 13,314 Colorado 3,346 3,346 0 Connecticut 2,351 2,351 0 Delaware 982 0 982 Florida 15,183 15,183 0 Georgia 3,123 0 3,123 Hawaii 670 0 670 Idaho 2,500 2,500 0 Illinois 4,252 4,252 0 Indiana 6,179 6,179 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Iowa 0 - 0 Kansas 3,596 3,596 0 Kentucky 6,499 6,499 0 Louisiana 2,064 2,064 0 Maine 511 0 511 Maryland 3,835 3,835 0 Massachusetts 4,382 4,382 0 Michigan 8,945 8,945 0 Minnesota 0 0 0 Mississippi 1,330 1,330 0 Missouri 4,657 4,657 0 Montana 853 853 0 Nebraska 5,363 5,363 0 Nevada 1,774 1,774 0 New Hampshire 0 - 0 New Jersey 4,402 4,402 0 New Mexico 643 643 0 New York 12,333 12,333 0 North Carolina 11,886 11,886 0 North Dakota 2,417 0 2,417 Ohio 8,080 8,080 0 Oklahoma 4,878 0 4,878 Oregon 3,071 3,071 0 Pennsylvania 9,676 9,676 0 Rhode Island 548 0 548 South Carolina 1,576 0 1,576 South Dakota 0 0 0 Tennessee 4,214 0 4,214 Texas 12,843 12,843 0 Utah 1,837 0 1,837 Vermont 459 0 459 Virginia 5,019 5,019 0 Washington 7,773 0 7,773 West Virginia 1,037 1,037 0 Wisconsin 5,427 0 5,427 Wyoming 852 0 852 Puerto Rico 3,013 0 3,013 Other 638 0 638

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Per UTS applicator incremental cost = NI C (U.S., annualized va lue) ÷ (sum of N UTS trained for all regions)

 3% discount rate used for PV and annualized value

Table: Comm Sup-01; Employers of UTS Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 203,898 146,100 57,797 U.S. (annualized value) 23,207 16,629 6,578 Per UTS applicator incremental cost

3.1.1.2 Comm Sup-02: Non-certified Applicators Complete Training or Pass Core Commercial Certification Exam

Step 1 - Calculate Baseline Costs per Applicator Applying RUPs Under the Supervision of a Commercial Applicator

There is currently no federal competency requ irement for non-certifie d applicators applying RUPs under the supervision (UTS) of a commercial applicator. This requirement is intended to address applicator competency before they are permitted to apply RUPs UTS of a commercial applicator. Some states (17) currently have requirements (core exam, or, core exam plus training) that meet or exceed the proposed competency requirements of Comm Sup-02, as specified below, so are already in compliance. An additional 7 states have training requirements that exceed the time necessary to fulfill the re quirements of Comm Sup -02. Because their baseline compliance cost is equa l to or greater than the cost of meeting the potential federal requirement, UTS applicators in th ese 7 states are also assumed to be in compliance with Comm Sup-02. Therefore, UTS applicators in these 24 ( 17 + 7) states would incur zero incremental cost under the potential requirement.

There are 5 other states that requ ire training, but the time and cost of the requirement is less than that of the core exam requirement of Comm Sup-02. These states are considered not in compliance, assumed to have zero baseline cost, a nd it is assumed that all UTS applicators would*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

have to take the core exam and incur the full im pact of the potential requ irement. The remaining 21 states, Puerto Rico, and Other Jurisdictions, do not require noncertifi ed applicator training, exam, or other demonstration of competency. Therefore, these 26 (5 + 21) states have zero baseline cost and would bear the full impact of these potential requirements as incremental cost.

24 States Currently in Compliance With Potential Competency Requirements

Competency Requirements:

 17 states with a minimum of core exam requirement:

o 10 states require passing the commercial core exam only: CT, IL, IN, IA, KY, LA, MA, NV, NM, OR

o 7 states require both passing the commerc ial core exam, and training: FL, MI, MS, MT, NH, NY, VA

 7 states require training for which time and co st of compliance is equal or greater than that of core exam requirement: CO, KS, MO, NE, NJ, NC, PA Assumptions:

 UTS applicators in these 24 states meet or exceed the potential competency requirements, so are already in compliance

 To avoid the appearance of cost-savings in Step 3, the baseline cost in jurisdictions whose requirements meet or exceed the poten tial requirement, are constrained to equal the cost of the potential requirement. Comm Sup-02 requires passing the core exam. Therefore, the baseline cost per UTS applicator in these 24 states is based on the time to prepare and take the core exam.

 The commercial core exam takes 1 hour to comp lete plus 11 hours to prepare, or 12 hours total

 Frequency of competency require ments is once every three years

 On average, 1/3 of UTS applicators would take the core exam each year

 The wage rate for non-certified applicator s applying RUPs under the supervision (UTS) of a commercial applicator is $18.34 per hour [insert source and year].

Table: Comm Sup-02; Step 1; Baseline Cost of Meeting Competency Re quirements, per Non-Certified Applicator Applying RUPs Under the Supervisio n of a Commercial Applicator; 24 States in Compliance With Competency Requirement for UTS Applicators Action Wage ($/hour) Time (hours) Frequency (per year, per UTS) Cost ($)

UTS applicator Core exam every 3 years 18.34 12 0.333 73.36

Total 73.36

26 States, Puerto Rico, and “Other” Currently With No Competency Requirement for UTS Applicators*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Competency Requirement:

 None Assumption:

 In the baseline for these jurisdictions, there is no requirement, so there is no time or cost for this activity.

Table: Comm Sup-02; Step 1; Baseline Cost of Meeting Competency Re quirements, per Non-Certified Applicator Applying RUPs Under the Supervisio n of a Commercial Applicator; 21 States, Puerto Rico, and Other Currently Wi th No Competency Requirement for UTS Applicators Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no competency requirement 18.34 0 0 0

Total 0

Step 2 - Calculate Costs of Potential Requiremen t per Non-Certified Applicator Under the Supervision of a Commercial Applicator

Competency Requirement:

 UTS applicators must pass the commercial cert ification core exam once every three years Assumptions:

 The core exam takes 1 hour to complete plus 11 hours to prepare, or a total of 12 hours, based on EPA experience

 On average, 1/3 of UTS applicators would take the core exam each year

 The wage rate for non-certified applicator s applying RUPs under the supervision (UTS) of a commercial applicator is $18.34 per hour [insert source and year].

Table: Comm Sup-02; Employers of UTS Applicators; Step 2; Annual Cost of Potential Requirement per No n-Certified Applicator Applying RUPs Under the Supervision of a Commercial Applicator Action Wage ($/hour) Time (hours) Frequency (per year, per UTS) Cost ($)

Core exam, every 3 years 18.34 12 0.333 73.36

Total 73.36

Step 3 – Estimate Regional Level Baseline and Compliance Costs

Terms and Definitions:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 UTS applicator: noncertified applicator w ho applies RUPs under the supervision of a commercial applicator

 N UTS trained is the number of noncertified applicators who apply RUPs under the supervision of existing commercial applicators
Assumptions:

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 Four (IA, MN, NH, SD) of the 21 states w ith no competency requirements specifically disallow application of RUPs by non-certified applicators. EPA assumes that they would continue this prohibition if the poten tial requirements became effective

 The baseline unit cost (UC B , or, cost r,i, a B ) is the annual baseline cost, per noncertified applicator applying RUPs UTS of a commercial applicator, presented in Step 1. To avoid the appearance of cost-savings, the baseline cost in jurisdictions whose requirements meet or exceed the option are constrained to equal the cost of the option

 The potential requirement unit cost (UC P , or, cost r,i, a P ) is the annual cost under the potential requirement, per noncertified applic ator applying RUPs under the supervision of a commercial applicator, presented in Step 2

 There are no data on the numb er of UTS applicators. EPA has estimated the number in each jurisdiction (see EA chapter 3.3.2)

 The baseline jurisdictional cost (RC B ) is the total annual ju risdictional cost for noncertified applicators who apply RU Ps UTS of commercial applicators

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost under the potential requirement for noncer tified applicators who apply RUPs UTS of commercial applicators

Given the above: RC B = cost r,i, a B x N UTS trained RC P = cost r,i, a P x N UTS trained
Values are presented in the table below.

Table: Comm Sup-02; Employers of UTS Applicators; Step 3; Total Annual Regional Baseline and Potential Requirement Costs for Applicators UTS of Commercia l Applicators; All Jurisdictions Region UC B ($) UC P ($) N UTS trained RC B ($) RC P ($) Alabama 0 73 9,035 0 2,651,230 Alaska 0 73 1,265 0 371,202 Arizona 0 73 13,384 0 3,927,401 Arkansas 0 73 7,121 0 2,089,586 California 0 73 73,702 0 21,626,968 Colorado 73 73 14,367 1,053,963 1,053,963 Connecticut 73 73 10,096 740,643 740,643*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Delaware 0 73 5,437 0 1,595,433 Florida 73 73 65,193 4,782,558 4,782,558 Georgia 0 73 17,289 0 5,073,137 Hawaii 0 73 3,710 0 1,088,662 Idaho 0 73 10,735 0 3,149,932 Illinois 73 73 18,259 1,339,444 1,339,444 Indiana 73 73 26,531 1,946,314 1,946,314 Iowa 73 73 0 0 0 Kansas 73 73 15,443 1,132,862 1,132,862 Kentucky 73 73 27,907 2,047,258 2,047,258 Louisiana 73 73 8,861 650,043 650,043 Maine 0 73 2,828 0 829,702 Maryland 0 73 16,465 0 4,831,490 Massachusetts 73 73 18,817 1,380,378 1,380,378 Michigan 73 73 38,410 2,817,758 2,817,758 Minnesota 0 73 0 0 0 Mississippi 73 73 5,710 418,886 418,886 Missouri 73 73 19,996 1,466,907 1,466,907 Montana 73 73 3,663 268,718 268,718 Nebraska 73 73 23,028 1,689,334 1,689,334 Nevada 73 73 7,617 558,746 558,746 New Hampshire 73 73 0 0 0 New Jersey 73 73 18,904 1,386,761 1,386,761 New Mexico 73 73 2,762 202,584 202,584 New York 73 73 52,958 3,884,999 3,884,999 North Carolina 73 73 51,036 3,743,964 3,743,964 North Dakota 0 73 13,381 0 3,926,521 Ohio 0 73 34,695 0 10,180,754 Oklahoma 0 73 27,005 0 7,924,200 Oregon 73 73 13,188 967,472 967,472 Pennsylvania 73 73 41,549 3,048,035 3,048,035 Rhode Island 0 73 3,035 0 890,590 South Carolina 0 73 8,723 0 2,559,530 South Dakota 0 73 0 0 0 Tennessee 0 73 23,325 0 6,844,488 Texas 0 73 55,148 0 16,182,482 Utah 0 73 10,167 0 2,983,404 Vermont 0 73 2,543 0 746,071 Virginia 73 73 21,550 1,580,908 1,580,908 Washington 0 73 43,030 0 12,626,723 West Virginia 0 73 4,451 0 1,306,101 Wisconsin 0 73 30,041 0 8,815,231*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Wyoming 0 73 4,715 0 1,383,423 Puerto Rico 0 73 16,678 0 4,893,846 Other 0 73 3,531 0 1,036,137 Total 947,275

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third year, non-certified applic ators applying RUPs under the supervision of a commercial applicator will need to take the core exam once every three years. Costs would remain constant in subsequent years. Th e PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 In this case, the number of UTS applicators is assumed to remain constant. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Sup-02; Employers of UTS Applicators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 5,767 0 5,767 Alaska 807 0 807*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Arizona 8,543 0 8,543 Arkansas 4,545 0 4,545 California 47,041 0 47,041 Colorado 9,260 9,260 0 Connecticut 6,507 6,507 0 Delaware 3,470 0 3,470 Florida 42,020 42,020 0 Georgia 11,035 0 11,035 Hawaii 2,368 0 2,368 Idaho 6,851 0 6,851 Illinois 11,768 11,768 0 Indiana 17,101 17,101 0 Iowa 00 0 Kansas 9,953 9,953 0 Kentucky 17,987 17,987 0 Louisiana 5,711 5,711 0 Maine 1,805 0 1,805 Maryland 10,509 0 10,509 Massachusetts 12,128 12,128 0 Michigan 24,757 24,757 0 Minnesota 00 0 Mississippi 3,680 3,680 0 Missouri 12,888 12,888 0 Montana 2,361 2,361 0 Nebraska 14,843 14,843 0 Nevada 4,909 4,909 0 New Hampshire 00 0 New Jersey 12,184 12,184 0 New Mexico 1,780 1,780 0 New York 34,134 34,134 0 North Carolina 32,895 32,895 0 North Dakota 8,541 0 8,541 Ohio 22,144 0 22,144 Oklahoma 17,236 0 17,236 Oregon 8,500 8,500 0 Pennsylvania 26,780 26,780 0 Rhode Island 1,937 0 1,937 South Carolina 5,567 0 5,567 South Dakota 00 0 Tennessee 14,887 0 14,887 Texas 35,199 0 35,199 Utah 6,489 0 6,489*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Vermont 1,623 0 1,623 Virginia 13,890 13,890 0 Washington 27,464 0 27,464 West Virginia 2,841 0 2,841 Wisconsin 19,174 0 19,174 Wyoming 3,009 0 3,009 Puerto Rico 10,645 0 10,645 Other 2,254 0 2,254

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Per UTS applicator incremental cost = NI C (U.S., annualized value) ÷ (sum of N UTS trained for all regions)

 3% discount rate used for PV and annualized value

Table: Comm Sup-02; Employers of UTS Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 605,537 326,040 279,497 U.S. (annualized value) 68,920 37,109 31,811 Per UTS applicator incremental cost

State costs of administering the core co mmercial certification ex am for Comm Sup-02 3.1.1.3 Comm Sup-02: Administer Certification Exam for “Non-certified Applicators Complete Training or Pass Core Commercial Certification Exam”
Step 1 - Calculate Baseline Costs

 26 states, Puerto Rico, and Ot her do not require noncertified applicators to pass a core

exam.

 24 states are in compliance with Comm S up-02 as they require their noncertified applicators to pass a core exam and also proctor the exam

Step 2 - Calculate Costs of Potential Requir ement per Commercial Applicator*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

26 States, Puerto Rico, & Other

Action/Material wage/price unit time/ quantity frequency cost Proctor commercial core exam 39.44 1 0.020 0.79 Total 0.79

24 States in Compliance

Action/Material wage/price unit time/ quantity frequency cost Proctor commercial core exam 39.44 1 0.007 0.26 Total 0.26

Step 3 – Estimate Regional Level Baseline and Compliance Costs
Comm Sup-02: Administer Certification Exam for “Non-certified Applicators Complete Training or Pass Core Commercial Certification Exam”
Region UC B UC P N Xst UTS Com RC B RC P ($) ($) ($) ($) Alabama 0 0.79 9,035 0 7,127 Alaska 0 0.79 1265 0 998 Arizona 0 0.79 13,384 0 10,557 Arkansas 0 0.79 7,121 0 5,617 California 0 0.79 73,702 0 58,136 Colorado 0 0.26 14,367 0 3,778 Connecticut 0.26 0.26 10,096 2,655 2,655 Delaware 0 0.79 5,437 0 4,289 Florida 0 0.26 65,193 0 17,141 Georgia 0 0.79 17,289 0 13,637 Hawaii 0 0.79 3,710 0 2,926 Idaho 0 0.79 10,735 0 8,467 Illinois 0.26 0.26 18,259 4,801 4,801 Indiana 0.26 0.26 26,531 6,976 6,976 Iowa 0 0.79 0 0 0 Kansas 0.26 0.26 15,443 4,060 4,060 Kentucky 0.26 0.26 27,907 7,338 7,338 Louisiana 0.26 0.26 8,861 2,330 2,330 Maine 0 0.79 2,828 0 2,230 Maryland 0 0.79 16,465 0 12,988 Massachusetts 0.26 0.26 18,817 4,947 4,947 Michigan 0.26 0.26 38,410 10,099 10,099 Minnesota 0 0.79 0 0 0 Mississippi 0.26 0.26 5,710 1,501 1,501*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Missouri 0.26 0.26 19,996 5,258 5,258 Montana 0.26 0.26 3,663 963 963 Nebraska 0.26 0.26 23,028 6,055 6,055 Nevada 0.26 0.26 7,617 2,003 2,003 New Hampshire 0 0.79 0 0 0 New Jersey 0.26 0.26 18,904 4,970 4,970 New Mexico 0.26 0.26 2,762 726 726 New York 0.26 0.26 52,958 13,924 13,924 North Carolina 0.26 0.26 51,036 13,419 13,419 North Dakota 0 0.79 13,381 0 10,555 Ohio 0 0.79 34,695 0 27,367 Oklahoma 0 0.79 27,005 0 21,301 Oregon 0.26 0.26 13,188 3,468 3,468 Pennsylvania 0.26 0.26 41,549 10,925 10,925 Rhode Island 0 0.79 3035 0 2,394 South Carolina 0 0.79 8,723 0 6,880 South Dakota 0 0.79 0 0 0 Tennessee 0 0.79 23,325 0 18,399 Texas 0 0.79 55,148 0 43,500 Utah 0 0.79 10,167 0 8,020 Vermont 0 0.79 2542.5 0 2,006 Virginia 0.26 0.26 21,550 5,666 5,666 Washington 0 0.79 43,030 0 33,942 West Virginia 0 0.79 4,451 0 3,511 Wisconsin 0 0.79 30,041 0 23,696 Wyoming 0 0.79 4,715 0 3,719 Puerto Rico 0 0.79 16,678 0 13,155 Other 0 0.79 3,531 0 2,785 Total 947,275 112,084 481,205

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

This alternative requires noncertified applicat ors under the direct supe rvision of a certified applicator take the core exam in the third year of the 10-year time horizon, and take a refresher exam every three years thereafte r. The PV of costs under the potential requirement, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 In this case, the number of noncertified appl icators under the superv ision of commercial applicators is assumed to remain constant. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Sup-02; Administer core ex am for noncertified applicators under supervision of commercial applicators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs

Region NPV RC P ($1000) NPV RC B ($1000) NPV IC ($1000) Alabama 21 0 21 Alaska 3 0 3 Arizona 31 0 31 Arkansas 16 0 16 California 169 0 169 Colorado 22 0 22 Connecticut 23 23 0 Delaware 12 0 12 Florida 101 0 101 Georgia 40 0 40 Hawaii 8 0 8*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Idaho 25 0 25 Illinois 42 42 0 Indiana 61 61 0 Iowa 0 0 0 Kansas 36 36 0 Kentucky 64 64 0 Louisiana 20 20 0 Maine 6 0 6 Maryland 38 0 38 Massachusetts 43 43 0 Michigan 89 89 0 Minnesota 0 0 0 Mississippi 13 13 0 Missouri 46 46 0 Montana 8 8 0 Nebraska 53 53 0 Nevada 18 18 0 New Hampshire 0 0 0 New Jersey 44 44 0 New Mexico 6 6 0 New York 122 122 0 North Carolina 118 118 0 North Dakota 31 0 31 Ohio 79 0 79 Oklahoma 62 0 62 Oregon 30 30 0 Pennsylvania 96 96 0 Rhode Island 7 0 7 South Carolina 20 0 20 South Dakota 0 0 0 Tennessee 53 0 53 Texas 126 0 126 Utah 23 0 23 Vermont 6 0 6 Virginia 50 50 0 Washington 98 0 98 West Virginia 10 0 10 Wisconsin 69 0 69*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Wyoming 11 0 11 Puerto Rico 38 0 38 Other 8 0 8

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Per commercial applicator incremental cost = NIC (U.S., annualized value) ÷ (total N Xst
Noncertified Com )

 3% discount rate used for PV and annualized value

Table: Comm Sup-06; Employers of Commercial Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000)
U.S. (present value) 2,117 985 1,133

U.S. (annualized value) 241 112 129 Per noncertified applicator incremental cost 0.0001

3.1.2 Record-Keeping Requirements

The baseline (Step 1) is the same for Comm Sup-06 and Comm Sup-07, and is shown once below, followed by Steps 2-6 for Comm S up-06, then Steps 2-6 for Comm Sup-07.

Step 1 - Calculate Baseline Costs per Commercia l Applicator for Recordkeeping of Noncertified Applicators Applying RUPs Under their Supervision

In the baseline there are no federal requirements fo r commercial applicators to keep records of competency requirements of non-certified applic ators who apply RUPs under their supervision. However, there are currently 14 states (CO, ID, KS, MI, MO, NE, NH, NJ, NY, NC, OH, PA, TX & VA) that require record keeping. The other 36 states, Pu erto Rico, and Other have no*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

recordkeeping requirements conc erning non-certified applicators under the supervision (UTS) of commercial applicators.

14 States Currently in Compliance With Potential Recordkeeping Requirements

Recordkeeping requirement:

 Commercial applicator must keep records of his/her UTS applicators’ competency requirements Assumptions:

 Commercial applicators in these 14 states meet or exceed the potential recordkeeping requirements, so are already in compliance

 It takes a commercial applicator 4 minutes (o r 0.067 hours) each year to record and file the competency qualifications of UTS applicators under his/her supervision.

 To avoid the appearance of cost-savings in Step 3, the baseline cost in jurisdictions whose requirements meet or exceed the poten tial requirement, are constrained to equal the cost of the potential requirement.

 The wage rate for a commercial applicator is $21.49 per hour [insert source and year]

Table: Comm Sup-06, -07; Step 1; Baseline Cost per Commercial Applicator for Recordkeeping of UTS Applicators; 14 States Currently in Compliance Action/Material Wage/price Unit Time/Quantity Frequency (per year, per CA) Cost ($) Create and file records of UTS applicators’ competency qualifications 21.49 0.067 1 1.43

Purchase a folder 0.20 1 1 0.20

Total 1.63

36 States, Puerto Rico, and Other Currentl y With No Recordkeeping Requirements

Recordkeeping requirement:

 None Assumption:

 In the baseline for these jurisdictions, there is no requirement, so there is no time or cost for this activity.

Table: Comm Sup-06, -07; Step 1; Baseline Cost per Commercial Applicator for Recordkeeping of UTS Applicators; 36 States, Puerto Rico, and Other wi th No Recordkeeping Requirement Action/Material Wage/price Unit Time/Quantity Frequency (per year, per CA) Cost ($)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

None 0 0 0 0

Total 0

3.1.2.1 Comm Sup-06: Certified Applicators Ma intain Records of UTS Applicator Competency for Two Years

Step 2 - Calculate Costs of Potential Requir ement per Commercial Applicator for Recordkeeping of Non-certified Applicato rs Applying RUPs Under their Supervision

Requirement:

 Commercial applicators must keep records of his/her UTS applicators’ competency requirements

 Records must be kept for 2 years Assumptions:

 It takes a commercial applicator 4 minutes (o r 0.067 hours) each year to record and file the competency qualifications of all UTS applicators unde r his/her supervision. The fulfillment of the competency qualifications, and the subsequent recording of the information, would be done once per year, typica lly at the same time for all applicators UTS of a given commercial applicator (average of 3 UTS per commercial)

 Commercial applicators would purchase a file folder each year to keep the records in

 A file folder costs 20 cents [Insert source]

Table: Comm Sup-06; Step 2; Cost per Commercial Applicator for Pote ntial Recordkeeping Requirement of UTS Applicators; All Jurisdictions Action/Material Wage/price Unit Time/Quantity Frequency (per year, per CA) Cost ($) Create and file records of UTS applicators’ competency qualifications 21.49 0.067 1 1.43

Purchase a folder 0.20 1 1 0.20

Total 1.63

Step 3 – Estimate Regional Level Baseline and Compliance Costs

Terms and Definitions:

 UTS applicator: noncertified applicator w ho applies RUPs under the supervision of a commercial applicator

 N Xst Com is the number of existing commercial applicators*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 N 1st Com is the number of commercial applicators who were certified for the first-time within the last year
Assumptions:

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 Both existing commercial applicators, and first-time commercial applicators, supervise non-certified applicators, and are therefore subject to th e potential recordkeeping requirements.

 The baseline unit cost (UC B , or, cost r,i, a B ) is the annual baseline recordkeeping cost, per commercial applicator, presented in Step 1. To avoid the appearance of cost-savings, the baseline cost in jurisdictions whose re quirements meet or exceed the option are constrained to equal the cost of the option

 The potential requirement unit cost (UC P , or, cost r,i, a P ) is the annual recordkeeping cost under the potential requirement, per commerc ial applicator, presented in Step 2

 Data reported by each jurisdiction on the number of existing and first-time commercial applicators, are obtained from the CPAR D database (see Chapter 3, Section 3.3)

 The baseline jurisdictional cost (RC B ) is the total annual ju risdictional cost of recordkeeping to firms employing commercial applicators and noncer tified applicators who apply RUPs UTS

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost of recordkeeping unde r the potential requirement to firms employing commercial applicators and noncertified appl icators who apply RUPs UTS

Given the above: RC B = cost r,i, a B x (N 1st Com + N Xst Com ) RC P = cost r,i, a P x (N 1st Com + N Xst Com )

Values are presented in the table below.

Table: Comm Sup-06; Employers of Commercial Applicators; Step 3; Total Annual Regional Baseline and Pote ntial Recordkeeping Requirement Costs; All Jurisdictions Region UC B ($) UC P ($) N 1st Com N Xst Com RC B ($) RC P ($) Alabama 0 1.63 330 3,772 0 6,697 Alaska 0 1.63 105 560 0 1,086 Arizona 0 1.63 865 6,240 0 11,601 Arkansas 0 1.63 439 3,893 0 7,073 California 0 1.63 3,689 32,546 0 59,164 Colorado 1.63 1.63 691 3,209 6,366 6,366 Connecticut 0 1.63 124 2,686 0 4,588 Delaware 0 1.63 154 1,812 0 3,211 Florida 0 1.63 1,702 15,303 0 27,765 Georgia 0 1.63 1,478 9,700 0 18,251*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Hawaii 0 1.63 116 1,151 0 2,069 Idaho 1.63 1.63 423 3,578 6,532 6,532 Illinois 0 1.63 3,277 12,053 0 25,030 Indiana 0 1.63 1,180 8,945 0 16,531 Iowa 0 1.63 1,497 11,904 0 21,880 Kansas 1.63 1.63 875 5,148 9,834 9,834 Kentucky 0 1.63 2,907 10,022 0 21,109 Louisiana 0 1.63 591 3,907 0 7,344 Maine 0 1.63 176 1,437 0 2,634 Maryland 0 1.63 472 4,084 0 7,438 Massachusetts 0 1.63 201 1,986 0 3,571 Michigan 1.63 1.63 2,013 12,803 24,191 24,191 Minnesota 0 1.63 1,850 8,375 0 16,694 Mississippi 0 1.63 304 2,742 0 4,972 Missouri 1.63 1.63 834 6,814 12,486 12,486 Montana 0 1.63 278 2,133 0 3,937 Nebraska 1.63 1.63 1,102 8,609 15,856 15,856 Nevada 0 1.63 300 1,390 0 2,760 New Hampshire 1.63 1.63 313 949 2,061 2,061 New Jersey 1.63 1.63 585 8,452 14,755 14,755 New Mexico 0 1.63 654 1,723 0 3,880 New York 1.63 1.63 1,252 17,653 30,866 30,866 North Carolina 1.63 1.63 1,361 17,012 29,999 29,999 North Dakota 0 1.63 428 4,889 0 8,680 Ohio 1.63 1.63 1,403 11,565 21,174 21,174 Oklahoma 0 1.63 1,538 9,002 0 17,208 Oregon 0 1.63 477 4,396 0 7,957 Pennsylvania 1.63 1.63 2,277 13,850 26,331 26,331 Rhode Island 0 1.63 53 606 0 1,077 South Carolina 0 1.63 753 5,009 0 9,407 South Dakota 0 1.63 814 4,943 0 9,400 Tennessee 0 1.63 1,328 13,051 0 23,476 Texas 1.63 1.63 1,716 17,478 31,340 31,340 Utah 0 1.63 929 3,389 0 7,050 Vermont 0 1.63 146 848 0 1,622 Virginia 1.63 1.63 1,159 6,325 12,219 12,219 Washington 0 1.63 1,370 14,343 0 25,655 West Virginia 0 1.63 240 1,747 0 3,245 Wisconsin 0 1.63 1,623 11,287 0 21,078 Wyoming 0 1.63 339 1,572 0 3,119 Puerto Rico 0 1.63 330 5,559 0 Other 0 1.63 243 2,134 0 Total*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third year , commercial applicators would need to keep records of competency qualifications of non-certi fied applicators applyi ng RUPs under their supervision. Costs would remain constant in subsequent years. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 In this case, the number of commercial appl icators is assumed to remain constant. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Sup-06; Employers of Co mmercial Applicators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 46 0 46 Alaska 7 0 7 Arizona 79 0 79 Arkansas 48 0 48 California 403 0 403 Colorado 56 56 0 Connecticut 31 0 31*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Delaware 22 0 22 Florida 189 0 189 Georgia 124 0 124 Hawaii 14 0 14 Idaho 57 57 0 Illinois 171 0 171 Indiana 113 0 113 Iowa 149 0 149 Kansas 86 86 0 Kentucky 144 0 144 Louisiana 50 0 50 Maine 18 0 18 Maryland 51 0 51 Massachusetts 24 0 24 Michigan 213 213 0 Minnesota 114 0 114 Mississippi 34 0 34 Missouri 110 110 0 Montana 27 0 27 Nebraska 139 139 0 Nevada 19 0 19 New Hampshire 18 18 0 New Jersey 130 130 0 New Mexico 26 0 26 New York 271 271 0 North Carolina 264 264 0 North Dakota 59 0 59 Ohio 186 186 0 Oklahoma 117 0 117 Oregon 54 0 54 Pennsylvania 231 231 0 Rhode Island 7 0 7 South Carolina 64 0 64 South Dakota 64 0 64 Tennessee 160 0 160 Texas 275 275 0 Utah 48 0 48 Vermont 11 0 11 Virginia 107 107 0 Washington 175 0 175 West Virginia 22 0 22 Wisconsin 144 0 144 Wyoming 21 0 21 Puerto Rico*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Other

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Per commercial applicator incremental cost = NIC (U.S., annualized value) ÷ (sum of N

1st Com + N Xst Com for all regions)

 3% discount rate used for PV and annualized value

Table: Comm Sup-06; Employers of Commercial Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000)
U.S. (present value) 4,994 2,144 2,851

U.S. (annualized value) 568 244 324 Per commercial applicator incremental cost

3.1.2.2 Comm Sup-07: Certified Applicators Mainta in Records of UTS Competency for Five Years

Step 2 - Calculate Costs of Potential Requirem ent per Commercial Applicator for Recordkeeping of Non-certified Applicato rs Applying RUPs Under their Supervision

Requirement:

 Commercial applicators must keep records of his/her UTS applicators’ competency requirements

 Records must be kept for 5 years Assumptions:

 It takes a commercial applicator 4 minutes (o r 0.067 hours) each year to record and file the competency qualifications of all UTS applicators unde r his/her supervision. The fulfillment of the competency qualifications, and the subsequent recording of the*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

information, would be done once per year, typica lly at the same time for all applicators UTS of a given commercial applicator (average of 3 UTS per commercial).

 Commercial applicators would purchase a file folder each year to keep the records in

 With a requirement to keep the records for five years, commercial applicators would purchase a file box once every five years, to keep the folders in.

 A file folder costs 20 cents and a file box costs $4.23 [Insert source]

Table: Comm Sup-07; Step 2; Cost per Commercial Applicator for Pote ntial Recordkeeping Requirement of UTS Applicators; All Jurisdictions

Action/Material Wage/price Unit Time/Quantity Frequency (per year, per CA) Cost ($) Create and file records of UTS applicators’ competency qualifications 21.49 0.067 1 1.43

Purchase a folder 0.20 1 1 0.20 Purchase a box 4.23 1 0.20 0.85 Total 2.48

Step 3 – Estimate Regional Level Baseline and Compliance Costs

Terms and Definitions:

 UTS applicator: noncertified applicator w ho applies RUPs under the supervision of a commercial applicator

 N Xst Com is the number of existing commercial applicators

 N 1st Com is the number of commercial applicators who were certified for the first-time within the last year Assumptions:

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 Both existing commercial applicators, and first-time commercial applicators, supervise non-certified applicators, and are therefore subject to th e potential recordkeeping requirements.

 The baseline unit cost (UC B , or, cost r,i, a B ) is the annual baseline recordkeeping cost, per commercial applicator, presented in Step 1. To avoid the appearance of cost-savings, the baseline cost in jurisdictions whose re quirements meet or exceed the option are constrained to equal the cost of the option

 The potential requirement unit cost (UC P , or, cost r,i, a P ) is the annual recordkeeping cost under the potential requirement, per commerc ial applicator, presented in Step 2

 Data reported by each jurisdiction on the number of existing and first-time commercial applicators, are obtained from the CPAR D database (see Chapter 3, Section 3.3)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The baseline jurisdictional cost (RC B ) is the total annual ju risdictional cost of recordkeeping to firms employing commercial applicators and noncer tified applicators who apply RUPs UTS

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost of recordkeeping unde r the potential requirement to firms employing commercial applicators and noncertified appl icators who apply RUPs UTS

Given the above: RC B = cost r,i, a B x (N 1st Com + N Xst Com ) RC P = cost r,i, a P x (N 1st Com + N Xst Com )

Values are presented in the table below.

Table: Comm Sup-07; Employers of Commercial Applicators; Step 3; Total Annual Regional Baseline and Pote ntial Recordkeeping Requirement Costs; All Jurisdictions

Region UC B ($) UC P ($) N 1st Com N Xst Com RC B ($) RC P ($) Alabama 0 2.48 330 3,772 0 10,167 Alaska 0 2.48 105 560 0 1,648 Arizona 0 2.48 865 6,240 0 17,612 Arkansas 0 2.48 439 3,893 0 10,738 California 0 2.48 3,689 32,546 0 89,819 Colorado 1.63 2.48 691 3,209 6,366 9,665 Connecticut 0 2.48 124 2,686 0 6,965 Delaware 0 2.48 154 1,812 0 4,875 Florida 0 2.48 1,702 15,303 0 42,151 Georgia 0 2.48 1,478 9,700 0 27,708 Hawaii 0 2.48 116 1,151 0 3,141 Idaho 1.63 2.48 423 3,578 6,532 9,917 Illinois 0 2.48 3,277 12,053 0 37,999 Indiana 0 2.48 1,180 8,945 0 25,097 Iowa 0 2.48 1,497 11,904 0 33,217 Kansas 1.63 2.48 875 5,148 9,834 14,929 Kentucky 0 2.48 2,907 10,022 0 32,047 Louisiana 0 2.48 591 3,907 0 11,149 Maine 0 2.48 176 1,437 0 3,998 Maryland 0 2.48 472 4,084 0 11,292 Massachusetts 0 2.48 201 1,986 0 5,421 Michigan 1.63 2.48 2,013 12,803 24,191 36,726 Minnesota 0 2.48 1,850 8,375 0 25,344 Mississippi 0 2.48 304 2,742 0 7,549 Missouri 1.63 2.48 834 6,814 12,486 18,956 Montana 0 2.48 278 2,133 0 5,976*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Nebraska 1.63 2.48 1,102 8,609 15,856 24,071 Nevada 0 2.48 300 1,390 0 4,191 New Hampshire 1.63 2.48 313 949 2,061 3,129 New Jersey 1.63 2.48 585 8,452 14,755 22,400 New Mexico 0 2.48 654 1,723 0 5,891 New York 1.63 2.48 1,252 17,653 30,866 46,859 North Carolina 1.63 2.48 1,361 17,012 29,999 45,543 North Dakota 0 2.48 428 4,889 0 13,177 Ohio 1.63 2.48 1,403 11,565 21,174 32,145 Oklahoma 0 2.48 1,538 9,002 0 26,124 Oregon 0 2.48 477 4,396 0 12,079 Pennsylvania 1.63 2.48 2,277 13,850 26,331 39,974 Rhode Island 0 2.48 53 606 0 1,634 South Carolina 0 2.48 753 5,009 0 14,281 South Dakota 0 2.48 814 4,943 0 14,270 Tennessee 0 2.48 1,328 13,051 0 35,640 Texas 1.63 2.48 1,716 17,478 31,340 47,578 Utah 0 2.48 929 3,389 0 10,703 Vermont 0 2.48 146 848 0 2,463 Virginia 1.63 2.48 1,159 6,325 12,219 18,550 Washington 0 2.48 1,370 14,343 0 38,948 West Virginia 0 2.48 240 1,747 0 4,926 Wisconsin 0 2.48 1,623 11,287 0 31,999 Wyoming 0 2.48 339 1,572 0 4,734 Puerto Rico 0 2.48 330 5,559 0 Other 0 2.48 243 2,134 0 Total

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third year , commercial applicators would need to keep records of competency qualifications of non-certi fied applicators applyi ng RUPs under their*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

supervision. Costs would remain constant in subsequent years. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 In this case, the number of commercial appl icators is assumed to remain constant. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Sup-07; Employers of Co mmercial Applicators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 69 0 69 Alaska 11 0 11 Arizona 120 0 120 Arkansas 73 0 73 California 612 0 612 Colorado 78 56 22 Connecticut 47 0 47 Delaware 33 0 33 Florida 287 0 287 Georgia 189 0 189 Hawaii 21 0 21 Idaho 80 57 23 Illinois 259 0 259 Indiana 171 0 171 Iowa 226 0 226 Kansas 121 86 35 Kentucky 218 0 218 Louisiana 76 0 76 Maine 27 0 27 Maryland 77 0 77 Massachusetts 37 0 37 Michigan 298 213 85*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Minnesota 173 0 173 Mississippi 51 0 51 Missouri 154 110 44 Montana 41 0 41 Nebraska 195 139 56 Nevada 29 0 29 New Hampshire 25 18 7 New Jersey 182 130 52 New Mexico 40 0 40 New York 380 271 109 North Carolina 370 264 106 North Dakota 90 0 90 Ohio 261 186 75 Oklahoma 178 0 178 Oregon 82 0 82 Pennsylvania 324 231 93 Rhode Island 11 0 11 South Carolina 97 0 97 South Dakota 97 0 97 Tennessee 243 0 243 Texas 386 275 111 Utah 73 0 73 Vermont 17 0 17 Virginia 151 107 43 Washington 265 0 265 West Virginia 34 0 34 Wisconsin 218 0 218 Wyoming 32 0 32 Puerto Rico Other

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Per commercial applicator incremental cost = NIC (U.S., annualized value) ÷ (sum of N

1st Com + N Xst Com for all regions)

 3% discount rate used for PV and annualized value*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm Sup-07; Employers of Commercial Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 7,333 2,144 5,189 U.S. (annualized value) 835 244 591 Per commercial applicator incremental cost

3.1.3 Communication Requirements

3.1.3.1 Comm Sup-04: Non-Certified Applicators mustbe within line of sight of Commercial Applicator

Step 1 - Calculate Baseline Costs per Applicator Applying RUPs Under the Supervision of a Commercial Applicator

While current federal regulations allow non-cer tified applicators to apply RUPs “under the supervision” of a certified applic ator, they do not specify what conditions provide for acceptable communication between supervisee and supervis or in order to satis fy the supervision requirement. Potential requirements would specify those conditions, in order that the required supervision provides the intended effects.

In the baseline, three states (CA, CO, IA) require that non-certified appl icators applying RUPs under the supervision (UTS) of a co mmercial applicator must be w ithin the line of sight of the commercial applicator during the application. These three states are assumed to be in full compliance with Comm Sup-04, incu rring zero incremental cost. Th e baseline cost (Step 1) for these 3 states is assumed to equal the pot ential requirement cost shown in Step 2.

The remaining 47 states, Puerto Rico, and Other would be impact ed by this potential requirement.

EPA believes that in order to comply with this requirement, affected firms would need to hire more commercial applicators to replace some non- certified applicators. The agency estimates that there are currently about th ree non-certified applic ators per commercial applicator. Under Comm Sup-04, multiple non-certified applicators could not apply RUPs simultaneously at different sites, without a commerc ial applicator present at each site. Many applications may be done with applicators working as teams of two or more at the same site. This ratio of three noncertified applicators per commercial applicator would significantly limit the flexibility of a commercial application firm under a lin e-of-sight supervision requirement.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

EPA assumes a firm would replace one of three non certified applicators in its employment with a certified applicator to maintain sufficient flexib ility for simultaneous custom applications. Thus, the incremental cost of Comm Sup-04 would de rive from the company having to pay the certified applicator wage, instea d of a noncertified applicator wa ge, to 1/3 of the previously noncertified applicators. Under this scenario, the applicable baseline cost per noncertified applicator is the cost of labor for a noncertified applicator.

47 States, Puerto Rico, and Other, Currently With No Line of Sight with Supervisor Requirement for UTS Applicators

Applicable Requirement:

 None Assumptions:

 A non-certified applicator works an average of 1000 hours per year

 The wage rate for non-certified applicator s under the supervisi on of a commercial applicator is $18.34 per hour [insert source and year].

Table: Comm Sup-04; Step 1; Baseline Labor Cost per Non-Certified App licator Applying RUPs Under the Supervision of a Commercial Applicator; 47 States, Puerto Rico, and Other Currently Wi th No Line-of-Sight Requirement for UTS Applicators Action Wage ($/hour) Time (hours) Frequency (per year, per UTS) Cost ($)

Labor, non-certified applicator 18.34 1,000 1.0 18, 340 Total 18, 340

Step 2 - Calculate Costs of Potential Requirement per Applicator Applying RUPs Under the Supervision of a Commercial Applicator

Comm Sup-04 would require that non-certified applicators be within line of sight of a supervising commercial applicator, while applyi ng RUPs. As explained under Step 1, above, EPA assumes that 1 of 3 noncerti fied applicators who currently work UTS of a commercial applicator would be replaced by a commercia l applicator if Comm Sup-04 became a requirement. The cost under this potential requir ement, which would replace the labor cost of a non-certified applicator in the ba seline, must be calculated on a per-UTS-applicator basis. Relative to the baseline, there w ould be a decrease in non-certified applicator labor, as well as an increase in commercial applicator labor.

Communication Requirement:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 During RUP applications, UTS applicators mu st be within the line of sight of a supervising commercial applicator Assumptions:

 On average, there are currently 3 non-certif ied applicators (who apply RUPs UTS of a commercial applicator) per commercial applicator

 Under this potential requirem ent, one of 3 UTS applicators would be replaced by a commercial applicator (a t a higher wage rate)

 The wage rate for non-certified applicators is $18.34 per hour [insert source and year]

 The wage rate for a commercial applicator is $21.49 per hour [insert source and year]

Table: Comm Sup-04; Step 2; Labor Cost of Potential Requirement, per No n-Certified Applicator UTS of a Commercial Applicator Within Line of Sight; All Jurisdictions Action Wage ($/hour) Time (hours) Frequency (per year, per UTS) Cost ($)

Labor, non-certified applicator 18.34 1,000 0.667 12,227 Labor, commercial applicator 21.49 1,000 0.333 7,164 Total 19,390

Step 3 – Estimate Regional Level Baseline and Compliance Costs

Terms and Definitions:

 UTS applicator: noncertified applicator w ho applies RUPs under the supervision of a commercial applicator

 N UTS Xst Com is the number of noncertified applicators who apply RUPs under the supervision of existing commercial applicators
Assumptions:

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline unit cost (UC B , or, cost r,i, a B ) is the annual baseline cost, per noncertified applicator applying RUPs UTS of a commercial applicator, presented in Step 1. To avoid the appearance of cost-savings, the baseline cost in jurisdictions whose requirements meet or exceed the option are constrained to equal the cost of the option

 The potential requirement unit cost (UC P , or, cost r,i, a P ) is the annual cost under the potential requirement, per noncertified applic ator applying RUPs under the supervision of a commercial applicator, presented in Step 2

 There are no data on the numb er of UTS applicators. EPA has estimated the number in each jurisdiction (see EA chapter 3.3.2)

 The baseline jurisdictional cost (RC B ) is the total a nnual jurisdictional cost to firms employing noncertified applicators who appl y RUPs UTS of commercial applicators

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost under the potential requi rement to firms employing noncertified applicators who apply RUPs UTS of co mmercial applicators*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Given the above: RC B = cost r,i, a B x N UTS Xst Com RC P = cost r,i, a P x N UTS Xst Com
Values are presented in the table below.

Table: Comm Sup-04; Employers of UTS Applicators; Step 3; Total Annual Regional Baseline and Potential Requirement Costs for Applicators UTS of Commercia l Applicators; All Jurisdictions Region UC B ($) UC P ($) N UTS Xst Com RC B ($) RC P ($) Alabama 18,340 19,390 9,035 165,701,900 175,192,814 Alaska 18,340 19,390 1,265 23,200,100 24,528,933 Arizona 18,340 19,390 13,384 245,462,560 259,521,928 Arkansas 18,340 19,390 7,121 130,599,140 138,079,472 California 19,390 19,390 73,702 1,429,106,052 1,429,106,052 Colorado 19,390 19,390 14,367 278,582,751 278,582,751 Connecticut 18,340 19,390 10,096 185,160,640 195,766,093 Delaware 18,340 19,390 5,437 99,714,580 105,425,936 Florida 18,340 19,390 65,193 1,195,639,620 1,264,122,316 Georgia 18,340 19,390 17,289 317,071,090 335,231,983 Hawaii 18,340 19,390 3,710 68,041,400 71,938,610 Idaho 18,340 19,390 10,735 196,870,730 208,146,902 Illinois 18,340 19,390 18,259 334,860,890 354,040,730 Indiana 18,340 19,390 26,531 486,578,540 514,448,318 Iowa 19,390 19,390 0 0 0 Kansas 18,340 19,390 15,443 283,215,450 299,437,192 Kentucky 18,340 19,390 27,907 511,814,380 541,129,592 Louisiana 18,340 19,390 8,861 162,510,740 171,818,874 Maine 18,340 19,390 2,828 51,856,350 54,826,528 Maryland 18,340 19,390 16,465 301,968,100 319,263,938 Massachusetts 18,340 19,390 18,817 345,094,610 364,860,607 Michigan 18,340 19,390 38,410 704,439,400 744,787,602 Minnesota 18,340 19,390 0 0 0 Mississippi 18,340 19,390 5,710 104,721,400 110,719,532 Missouri 18,340 19,390 19,996 366,726,640 387,731,656 Montana 18,340 19,390 3,663 67,179,420 71,027,258 Nebraska 18,340 19,390 23,028 422,333,520 446,523,533 Nevada 18,340 19,390 7,617 139,686,610 147,687,445 New Hampshire 18,340 19,390 0 0 0 New Jersey 18,340 19,390 18,904 346,690,190 366,547,577 New Mexico 18,340 19,390 2,762 50,645,910 53,546,758 New York 18,340 19,390 52,958 971,249,720 1,026,880,027*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

North Carolina 18,340 19,390 51,036 935,991,070 989,601,866 North Dakota 18,340 19,390 13,381 245,407,540 259,463,757 Ohio 18,340 19,390 34,695 636,297,130 672,742,345 Oklahoma 18,340 19,390 27,005 495,262,530 523,629,701 Oregon 18,340 19,390 13,188 241,867,920 255,721,398 Pennsylvania 18,340 19,390 41,549 762,008,660 805,654,259 Rhode Island 18,340 19,390 3,035 55,661,900 58,850,049 South Carolina 18,340 19,390 8,723 159,970,650 169,133,295 South Dakota 18,340 19,390 0 0 0 Tennessee 18,340 19,390 23,325 427,780,500 452,282,500 Texas 18,340 19,390 55,148 1,011,405,150 1,069,335,441 Utah 18,340 19,390 10,167 186,462,780 197,142,816 Vermont 18,340 19,390 2,543 46,629,450 49,300,247 Virginia 18,340 19,390 21,550 395,227,000 417,864,432 Washington 18,340 19,390 43,030 789,170,200 834,371,532 West Virginia 18,340 19,390 4,451 81,631,340 86,306,941 Wisconsin 18,340 19,390 30,041 550,951,940 582,508,835 Wyoming 18,340 19,390 4,715 86,463,930 91,416,328 Puerto Rico 18,340 19,390 16,678 305,865,350 323,384,411 Other 18,340 19,390 3,531 64,758,540 68,467,717 Total 947,275

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third year, non-certified applic ators applying RUPs under the supervision of a commercial applicator w ould need to need to do so within the direct line of sight of a superv ising commercial applicator. Costs w ould remain constant in subsequent years. The PV of costs under the proposal, at a 3% discount rate, is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 In this case, the number of UTS applicators is assumed to remain constant. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Sup-04; Employers of UTS Applicators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 1,520,558 1,455,875 64,683 Alaska 212,895 203,839 9,056 Arizona 2,252,479 2,156,661 95,818 Arkansas 1,198,438 1,147,458 50,980 California 12,556,281 12,556,281 0 Colorado 2,447,658 2,447,658 0 Connecticut 1,699,120 1,626,842 72,279 Delaware 915,027 876,103 38,924 Florida 10,971,746 10,505,020 466,726 Georgia 2,909,592 2,785,821 123,771 Hawaii 624,380 597,819 26,560 Idaho 1,806,577 1,729,728 76,850 Illinois 3,072,839 2,942,124 130,715 Indiana 4,465,071 4,275,132 189,939 Iowa 0 0 0 Kansas 2,598,917 2,488,362 110,555 Kentucky 4,696,647 4,496,857 199,790 Louisiana 1,491,274 1,427,837 63,437 Maine 475,858 455,616 20,242 Maryland 2,771,000 2,653,125 117,875 Massachusetts 3,166,749 3,032,039 134,710 Michigan 6,464,264 6,189,281 274,982 Minnesota 0 0 0 Mississippi 960,972 920,094 40,879 Missouri 3,365,254 3,222,100 143,154*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Montana 616,470 590,246 26,224 Nebraska 3,875,529 3,710,668 164,861 Nevada 1,281,829 1,227,302 54,528 New Hampshire 0 0 0 New Jersey 3,181,391 3,046,058 135,333 New Mexico 464,750 444,980 19,770 New York 8,912,639 8,533,506 379,134 North Carolina 8,589,090 8,223,719 365,370 North Dakota 2,251,974 2,156,177 95,796 Ohio 5,838,959 5,590,576 248,383 Oklahoma 4,544,759 4,351,431 193,329 Oregon 2,219,493 2,125,078 94,415 Pennsylvania 6,992,546 6,695,091 297,455 Rhode Island 510,779 489,052 21,728 South Carolina 1,467,965 1,405,520 62,446 South Dakota 0 0 0 Tennessee 3,925,513 3,758,526 166,987 Texas 9,281,124 8,886,316 394,809 Utah 1,711,069 1,638,282 72,787 Vermont 427,894 409,691 18,202 Virginia 3,626,787 3,472,507 154,279 Washington 7,241,793 6,933,735 308,058 West Virginia 749,087 717,222 31,865 Wisconsin 5,055,791 4,840,724 215,068 Wyoming 793,433 759,682 33,752 Puerto Rico 2,806,763 2,687,366 119,397 Other 124,716,289 0 124,716,289

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Per UTS applicator incremental cost = NI C (U.S., annualized va lue) ÷ (sum of N UTS trained for all regions)

 3% discount rate used for PV and annualized value

Table: Comm Sup-04; Employers of UTS Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

NC P ($1,000) NC B ($1,000) NIC ($1,000)
U.S. (present value) 283,727,314 152,885,126 130,842,188

U.S. (annualized value) 32,292,715 17,400,777 14,891,938 Per UTS applicator incremental cost

3.1.3.2 Comm Sup-05: Non-Certified Applicato rs must have method of immediate Communication with Commercial Applicator

Based on the EPA's poll of 5 states (NC, CA, IN, FL, & WY), EPA assumes that in the baseline, in all 50 states, Puerto Rico, and Other, nonc ertified applicators applying RUPs under the supervision of a commercial a pplicator currently use existing cell phones to communicate with that supervisor. Therefore, the immediat e communication requireme nt of Comm Sup-05 is already being met, and there is zero increm ental cost imposed by this requirement.

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### 3.2 Private Applicators

3.2.1 Competency Requirements

The baseline (Step 1) is the same for Priv ate Sup-01 and Private Sup-02, and is shown once below, followed by Steps 2-6 for Private S up-01, then Steps 2-6 for Private Sup-02

Step 1 - Calculate Baseline Costs per Applicator Applying RUPs Under the Supervision of a Private Applicator

There is currently no federal competency requ irement for non-certifie d applicators applying RUPs under the supervision (UTS) of a private applicator. These potential requirements are intended to address applicator competency before they are permitted to apply RUPs UTS of a private applicator. Some states (29) currently have requirements (train ing and/or exam) that meet or exceed the proposed traini ng content, as specified below.

The remaining 21 states, Puerto Rico, and Ot her Jurisdictions, do not require noncertified applicator training or other dem onstration of competency, so ha ve zero baseline cost and would bear the full impact of these potential requirements as incremental cost.

29 States Currently in Compliance With Potential Competency Requirements*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Competency Requirements:

 12 states require training only: CO, ID , KS, MD, MO, NE, NJ, NC, OH, PA, TX, WV

 10 states require passing the commercial core exam only: CT, IL, IN, IA, KY, LA, MA, NV, NM, OR

 7 states require both training and passing th e core exam: FL, MI, MS, MT, NH, NY, VA Assumptions:

 Training required by states is equivalent to, or in excess of, training in the potential requirements

 UTS applicators in these states meet or exceed the potential competency requirements, so are already in full compliance

 To avoid the appearance of cost-savings in Step 3, the baseline cost in jurisdictions whose requirements meet or exceed the option are constrained to e qual the cost of the option.

 A private applicator trains one UTS applicator at a time (and typically employs only one), so the frequency of a private applicator’s prov ision of training, per UTS applicator, is one (see EA chapter 3.3.4).

 The wage rate for non-certified applicator s applying RUPs under the supervision (UTS) of a private applicator is $21.49 pe r hour [insert source and year].

 The wage rate for private applicators is $51.96 per hour [insert source and year].

Table: Private Sup-01 and -02; Step 1; Baseline Cost of Meeting Competency Re quirements, per Non-Certified Applicator Applying RUPs Under the Supervis ion of a Private Applicator; 29 States in Compliance With Competency Requirement for UTS Applicators Action Wage ($/hour) Time (hours) Frequency (per year, per UTS) Cost ($)

UTS applicator Receives training 21.49 1 1 21.49 Private applicator Trains UTS applicator 51.96 1 1 51.96

Total 73.45

21 States, Puerto Rico, and “Other” Currently With No Competency Requirement for UTS Applicators

Competency Requirement:

 None (for all states & jurisdictions not listed in the group of 29, above) Assumption:

 In the baseline for these jurisdictions, there is no requirement, so there is no time or cost for this activity.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Sup-01 and -02; Step 1; Baseline Cost of Meeting Competency Re quirements, per Non-Certified Applicator Applying RUPs Under the Supervis ion of a Private Applicator; 21 States, Puerto Rico, and Other Currently With No Competency Requirement for UTS Applicators

Action Wage ($/hour) Time (hours) Frequency Cost ($) None – no competency requirement 21.49 0 0 0

Total 0

3.2.1.1 Private Sup-01: Non-certified Applicators Complete Training, including Handler Training under the Worker Protection Standard

Step 2 - Calculate Costs of Potential Requiremen t per Non-Certified Applicator Under the Supervision of a Private Applicator

Competency Requirement:

 UTS applicators must complete rule-speci fied training, or co mplete WPS handler training, annually Assumptions:

 All UTS applicators would use the option of a nnual WPS handler trai ning to satisfy the requirement

 WPS handler training takes 1 hour to complete, based on EPA experience

 A private applicator trains one UTS applicator at a time (and typically employs only one), so the frequency of a private applicator’s prov ision of training, per UTS applicator, is one (see EA chapter 3.3.4).

Table: Private Sup-01; Employers of UTS App licators; Step 2; Annual Cost of Potential Requirement per No n-Certified Applicator Applying RUPs Under the Supervision of a Private Applicator Action Wage ($/hour) Time (hours) Frequency (per year, per UTS) Cost ($)

UTS applicator Receive WPS handler training 21.49 1 1 21.49

Private applicator Train UTS applicator 51.96 1 1 51.96

Total 73.45

Step 3 – Estimate Regional Level Baseline and Compliance Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Terms and Definitions:

 UTS applicator: noncertified applicator w ho applies RUPs under the supervision of a private applicator

 N UTS Pvt non-crop is the number of noncertified ap plicators who apply RUPs under the supervision of existing private applicat ors on non-crop agricu ltural establishments Assumptions:

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 Three (IA, MN, SD) of the 21 states with no competency requirements specifically disallow application of RUPs by non-certified applicators. EPA assumes that they would continue this prohibition if the potential requirements beca me effective. If so, there would continue to be no UTS applicators in those states, so no cost of the potential requirements.

 In all jurisdictions, including the 21 states with no competency requirements for UTS applicators, all applicators on crop farms are required by th e Worker Protection Standard to take WPS handler training. Since WPS handler training is one of the options to satisfy the potential competency requirement, UTS a pplicators on crop farms are already in compliance, so only UTS applicators on animal agriculture establishments are impacted.

 Family members of agricultural establishment owner/operators are exempt from the handler training requirement under the WPS. Those family members that are UTS applicators would, however, be subject to the competency requirements of this potential requirement under the Certification of Pesticid e Applicators rule, so would bear the full impact.

 The baseline unit cost (UC B , or, cost r,i, a B ) is the annual baseline cost, per noncertified applicator applying RUPs UTS of a private applicator, presente d in Step 1. To avoid the appearance of cost-savings, the baseline cost in jurisdictions whose requirements meet or exceed the option are constrained to equal the cost of the option

 The potential requirement unit cost (UC P , or, cost r,i, a P ) is the annual cost under the potential requirement, per noncertified applic ator applying RUPs under the supervision of a private applicator, presented in Step 2

 There are no data on the numb er of UTS applicators. EPA has estimated the number in each jurisdiction (see EA chapter 3.3.4)

 The baseline jurisdictional cost (RC B ) is the total annual ju risdictional cost for noncertified applicators who apply RUPs UTS of private applicators

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost under the potential requirement for noncer tified applicators who apply RUPs UTS of private applicators

Given the above: RC B = cost r,i, a B x N UTS Pvt non-crop

RC P = cost r,i, a P x N UTS Pvt non-crop
Values are presented in the table below.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Sup-01; Employers of UTS Applicators; Step 3; Total Annual Regional Baseline and Potential Requirement Costs for Applicators UTS of Private Applicators; All Jurisdictions Region UC B ($) UC P ($) N UTS Pvt non-crop RC B ($) RC P ($) Alabama 0 73 285 0 20,933 Alaska 0 73 10 0 735 Arizona 0 73 13 0 955 Arkansas 0 73 1,354 0 99,452 California 0 73 1,672 0 122,809 Colorado 73 73 311 22,843 22,843 Connecticut 73 73 18 1,322 1,322 Delaware 0 73 98 0 7,198 Florida 73 73 161 11,826 11,826 Georgia 0 73 1,289 0 94,678 Hawaii 0 73 11 0 808 Idaho 73 73 247 18,142 18,142 Illinois 73 73 1,525 112,012 112,012 Indiana 73 73 932 68,456 68,456 Iowa 73 73 0 - - Kansas 73 73 1,072 78,739 78,739 Kentucky 73 73 325 23,871 23,871 Louisiana 73 73 368 27,030 27,030 Maine 0 73 40 0 2,938 Maryland 73 73 257 18,877 18,877 Massachusetts 73 73 37 2,718 2,718 Michigan 73 73 444 32,612 32,612 Minnesota 0 73 0 0 - Mississippi 73 73 760 55,822 55,822 Missouri 73 73 895 65,738 65,738 Montana 73 73 525 38,562 38,562 Nebraska 73 73 2,539 186,491 186,491 Nevada 73 73 23 1,689 1,689 New Hampshire 73 73 11 808 808 New Jersey 73 73 74 5,435 5,435 New Mexico 73 73 96 7,051 7,051 New York 73 73 464 34,081 34,081 North Carolina 73 73 1,405 103,198 103,198 North Dakota 0 73 1,213 0 89,096 Ohio 73 73 951 69,852 69,852 Oklahoma 0 73 590 0 43,336*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Oregon 73 73 208 15,278 15,278 Pennsylvania 73 73 1,183 86,892 86,892 Rhode Island 0 73 6 0 441 South Carolina 0 73 257 0 18,877 South Dakota 0 73 0 0 - Tennessee 0 73 260 0 19,097 Texas 73 73 1,636 120,165 120,165 Utah 0 73 59 0 4,334 Vermont 0 73 29 0 2,130 Virginia 73 73 222 16,306 16,306 Washington 0 73 912 0 66,987 West Virginia 73 73 28 2,057 2,057 Wisconsin 0 73 998 0 73,304 Wyoming 0 73 487 0 35,770 Puerto Rico 0 73 1,615 0 118,623 Other 0 73 15 0 1,102 Total 27,930 1,227,874 2,051,476

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third year, non-certified applic ators applying RUPs under the supervision of a private applicator wi ll need to receive annua l training. Costs would remain constant in subsequent ye ars. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 In this case, the number of UTS applicators is assumed to remain constant. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Sup-01; Employers of UTS Applic ators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 143 0 143 Alaska 5 0 5 Arizona 7 0 7 Arkansas 678 0 678 California 837 0 837 Colorado 201 201 0 Connecticut 12 12 0 Delaware 49 0 49 Florida 104 104 0 Georgia 645 0 645 Hawaii 6 0 6 Idaho 159 159 0 Illinois 984 984 0 Indiana 601 601 0 Iowa 0 - 0 Kansas 692 692 0 Kentucky 210 210 0 Louisiana 237 237 0 Maine 20 0 20 Maryland 166 166 0 Massachusetts 24 24 0 Michigan 287 287 0 Minnesota 0 0 0 Mississippi 490 490 0 Missouri 578 578 0 Montana 339 339 0 Nebraska 1,639 1,639 0 Nevada 15 15 0 New Hampshire 7 7 0 New Jersey 48 48 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

New Mexico 62 62 0 New York 299 299 0 North Carolina 907 907 0 North Dakota 607 0 607 Ohio 614 614 0 Oklahoma 295 0 295 Oregon 134 134 0 Pennsylvania 763 763 0 Rhode Island 3 0 3 South Carolina 129 0 129 South Dakota 0 0 0 Tennessee 130 0 130 Texas 1,056 1,056 0 Utah 30 0 30 Vermont 15 0 15 Virginia 143 143 0 Washington 457 0 457 West Virginia 18 18 0 Wisconsin 500 0 500 Wyoming 244 0 244 Puerto Rico 808 0 808 Other 8 0 8

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Per UTS applicator incremental cost = NI C (U.S., annualized va lue) ÷ (sum of N UTS Pvt

non-crop for all regions)

 3% discount rate used for PV and annualized value

Table: Private Sup-01; Employers of UTS Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 16,401 10,788 5,613*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

U.S. (annualized value) 1,867 1,228 639 Per UTS applicator incremental cost 0.023

3.2.1.2 Private Sup-02: Non-certified Applicato rs Complete Training, including Handler Training under the Worker Protection Standard or Pass Core Commercial Certification Exam

Step 2 - Calculate Costs of Potential Requiremen t per Non-Certified Applicator Under the Supervision of a Private Applicator
Competency Requirement:

 UTS applicators must complete rule-speci fied training annually, or complete WPS handler training annuall y, or pass the commercial certi fication core exam once every three years Assumptions:

 All UTS applicators would use the option of a nnual WPS handler trai ning to satisfy the requirement

 WPS handler training takes 1 hour to complete, based on EPA experience

 A private applicator trains one UTS applicator at a time (and typically employs only one), so the frequency of a private applicator’s prov ision of training, per UTS applicator, is one (see EA chapter 3.3.4).

Table: Private Sup-02; Employers of UTS App licators; Step 2; Annual Cost of Potential Requirement per No n-Certified Applicator Applying RUPs Under the Supervision of a Private Applicator Action Wage ($/hour) Time (hours) Frequency (per year, per UTS) Cost ($)

UTS applicator Receive WPS handler training 21.49 1 1 21.49

Private applicator Train UTS applicator 51.96 1 1 51.96

Total 73.45

Step 3 – Estimate Regional Level Baseline and Compliance Costs

Terms and Definitions:

 UTS applicator: noncertified applicator w ho applies RUPs under the supervision of a private applicator

 N UTS Pvt non-crop is the number of noncertified ap plicators who apply RUPs under the supervision of existing private applicat ors on non-crop agricu ltural establishments*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Assumptions:

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 Three (IA, MN, SD) of the 21 states with no competency requirements specifically disallow application of RUPs by non-certified applicators. EPA assumes that they would continue this prohibition if the potential requirements beca me effective. If so, there would continue to be no UTS applicators in those states, so no cost of the potential requirements.

 In all jurisdictions, including the 21 states with no competency requirements for UTS applicators, all applicators on crop farms are required by th e Worker Protection Standard to take WPS handler training. Since WPS handler training is one of the options to satisfy the potential competency requirement, UTS a pplicators on crop farms are already in compliance, so only UTS applicators on animal agriculture establishments are impacted.

 Family members of agricultural establishment owner/operators are exempt from the handler training requirement under the WPS. Those family members that are UTS applicators would, however, be subject to the competency requirements of this potential requirement under the Certification of Pesticid e Applicators rule, so would bear the full impact.

 The baseline unit cost (UC B , or, cost r,i, a B ) is the annual baseline cost, per noncertified applicator applying RUPs UTS of a private applicator, presente d in Step 1. To avoid the appearance of cost-savings, the baseline cost in jurisdictions whose requirements meet or exceed the option are constrained to equal the cost of the option

 The potential requirement unit cost (UC P , or, cost r,i, a P ) is the annual cost under the potential requirement, per noncertified applic ator applying RUPs under the supervision of a private applicator, presented in Step 2

 There are no data on the numb er of UTS applicators. EPA has estimated the number in each jurisdiction (see EA chapter 3.3.4)

 The baseline jurisdictional cost (RC B ) is the total annual ju risdictional cost for noncertified applicators who apply RUPs UTS of private applicators

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost under the potential requirement for noncer tified applicators who apply RUPs UTS of private applicators

Given the above: RC B = cost r,i, a B x N UTS Pvt non-crop

RC P = cost r,i, a P x N UTS Pvt non-crop
Values are presented in the table below.

Table: Private Sup-02; Employers of UTS Applicators; Step 3; Total Annual Regional Baseline and Potential Requirement Costs for Applicators UTS of Private Applicators; All Jurisdictions Region UC B UC P N UTS Pvt non-crop RC B RC P*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

($) ($) ($) ($)

Alabama 0 73 285 0 20,933 Alaska 0 73 10 0 735 Arizona 0 73 13 0 955 Arkansas 0 73 1,354 0 99,452 California 0 73 1,672 0 122,809 Colorado 73 73 311 22,843 22,843 Connecticut 73 73 18 1,322 1,322 Delaware 0 73 98 0 7,198 Florida 73 73 161 11,826 11,826 Georgia 0 73 1,289 0 94,678 Hawaii 0 73 11 0 808 Idaho 73 73 247 18,142 18,142 Illinois 73 73 1,525 112,012 112,012 Indiana 73 73 932 68,456 68,456 Iowa 73 73 0 - - Kansas 73 73 1,072 78,739 78,739 Kentucky 73 73 325 23,871 23,871 Louisiana 73 73 368 27,030 27,030 Maine 0 73 40 0 2,938 Maryland 73 73 257 18,877 18,877 Massachusetts 73 73 37 2,718 2,718 Michigan 73 73 444 32,612 32,612 Minnesota 0 73 0 0 - Mississippi 73 73 760 55,822 55,822 Missouri 73 73 895 65,738 65,738 Montana 73 73 525 38,562 38,562 Nebraska 73 73 2,539 186,491 186,491 Nevada 73 73 23 1,689 1,689 New Hampshire 73 73 11 808 808 New Jersey 73 73 74 5,435 5,435 New Mexico 73 73 96 7,051 7,051 New York 73 73 464 34,081 34,081 North Carolina 73 73 1,405 103,198 103,198 North Dakota 0 73 1,213 0 89,096 Ohio 73 73 951 69,852 69,852 Oklahoma 0 73 590 0 43,336 Oregon 73 73 208 15,278 15,278 Pennsylvania 73 73 1,183 86,892 86,892 Rhode Island 0 73 6 0 441 South Carolina 0 73 257 0 18,877*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

South Dakota 0 73 0 0 - Tennessee 0 73 260 0 19,097 Texas 73 73 1,636 120,165 120,165 Utah 0 73 59 0 4,334 Vermont 0 73 29 0 2,130 Virginia 73 73 222 16,306 16,306 Washington 0 73 912 0 66,987 West Virginia 73 73 28 2,057 2,057 Wisconsin 0 73 998 0 73,304 Wyoming 0 73 487 0 35,770 Puerto Rico 0 73 1,615 0 118,623 Other 0 73 15 0 1,102 Total 27,930 1,227,874 2,051,476

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third year, non-certified applic ators applying RUPs under the supervision of a private applicator wi ll need to receive annua l training. Costs would remain constant in subsequent ye ars. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 In this case, the number of UTS applicators is assumed to remain constant. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Sup-02; Employers of UTS Applic ators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 143 0 143 Alaska 5 0 5 Arizona 7 0 7 Arkansas 678 0 678 California 837 0 837 Colorado 201 201 0 Connecticut 12 12 0 Delaware 49 0 49 Florida 104 104 0 Georgia 645 0 645 Hawaii 6 0 6 Idaho 159 159 0 Illinois 984 984 0 Indiana 601 601 0 Iowa 0 - 0 Kansas 692 692 0 Kentucky 210 210 0 Louisiana 237 237 0 Maine 20 0 20 Maryland 166 166 0 Massachusetts 24 24 0 Michigan 287 287 0 Minnesota 0 0 0 Mississippi 490 490 0 Missouri 578 578 0 Montana 339 339 0 Nebraska 1,639 1,639 0 Nevada 15 15 0 New Hampshire 7 7 0 New Jersey 48 48 0 New Mexico 62 62 0 New York 299 299 0 North Carolina 907 907 0 North Dakota 607 0 607*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Ohio 614 614 0 Oklahoma 295 0 295 Oregon 134 134 0 Pennsylvania 763 763 0 Rhode Island 3 0 3 South Carolina 129 0 129 South Dakota 0 0 0 Tennessee 130 0 130 Texas 1,056 1,056 0 Utah 30 0 30 Vermont 15 0 15 Virginia 143 143 0 Washington 457 0 457 West Virginia 18 18 0 Wisconsin 500 0 500 Wyoming 244 0 244 Puerto Rico 808 0 808 Other 8 0 8

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Per UTS applicator incremental cost = NI C (U.S., annualized va lue) ÷ (sum of N UTS Pvt

non-crop for all regions)

 3% discount rate used for PV and annualized value

Table: Private Sup-02; Employers of UTS Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 16,401 10,788 5,613 U.S. (annualized value) 1,867 1,228 639 Per UTS applicator incremental cost 0.023*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

3.2.2 Communication Requirements

3.2.2.1 Private Sup-04: Non-Certified Applicators mu st be within line of sight of Private Applicator

Step 1 - Calculate Baseline Costs per Applicator Applying RUPs Under the Supervision of a Private Applicator

While current federal regulations allow non-cer tified applicators to apply RUPs “under the supervision” of a certified applic ator, they do not specify what c onditions provide for acceptable communication between supervisee and supervis or in order to satis fy the supervision requirement. Potential requirements would specify those conditions, in order that the required supervision provides the intended effects.

In the baseline, three states (CA, CO, IA) require that non-certified appl icators applying RUPs under the supervision (UTS) of a priv ate applicator must be within th e line of sight of the private applicator during the application. These three states are assumed to be in full compliance with Private Sup-04, incurring zero increm ental cost. The baseline cost (Step 1) for these 3 states is assumed to equal the potential re quirement cost shown in Step 2, with zero incremental cost.

The remaining 47 states, Puerto Rico, and Other do not have a line-of-sight requirement, and would be impacted by this potential requirement. In these ju risdictions, EPA assumes that each agricultural establishment that has a private a pplicator (often the owner/operator) on average hires one part time noncertified applicator to help with seasonal work on the farm. In the baseline, in states where there is no "line of sight" requirement, th is noncertified applicator may work "out of sight" of the private applicator. Th e baseline cost is the noncertified applicator wage.
If the line of sight requirement became eff ective, EPA assumes that the agricultural establishment would replace the noncertified applicat or labor with that of a private applicator. Thus, the incremental cost of Private Sup-04 w ould derive from the establishment having to pay the higher certified applicator wa ge instead of a noncertified app licator wage for the part time labor.

47 States, Puerto Rico, and Other, Currently With No Line of Sight with Private Applicator Requirement for UTS Applicators

Applicable Requirement:

 None Assumptions:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 A non-certified applicator works an averag e of 56 hours per year, UTS of a private applicator

 The wage rate for non-certified applicators under the supervision of a priv ate applicator is $21.49 per hour [insert source and year].

Table: Private Sup- 04; Step 1; Baseline Labor Cost per Non-Certified App licator Applying RUPs Under the Supervision of a Private Applicator; 47 States, Puerto Rico, and Other Currently Wi th No Line-of-Sight Requirement for UTS Applicators Action Wage ($/hour) Time (hours) Frequency (per year, per UTS) Cost ($)

Labor, non-certified applicator 21.49 56 1.0 1,204 Total 1,204

Step 2 - Calculate Costs of Potential Requirement per Applicator Applying RUPs Under the Supervision of a Private Applicator

Private Sup-04 would require th at non-certified applicators be within line of sight of a supervising private applicator, while applying RUPs. As expl ained under Step 1, above, EPA assumes that the labor of noncerti fied applicators who currently wo rk UTS of a private applicator would be replaced by private applic ator labor if Private Sup-04 became a requirement. The cost under this potential requirement, which would repl ace the labor cost of a non-certified applicator working UTS of a private applicator in the baselin e, is the cost of priv ate applicator labor for those hours.

Communication Requirement:

 During RUP applications, UTS applicators mu st be within the line of sight of a supervising private applicator Assumptions:

 On average, there is currently 1 non-certifi ed applicator (who a pplies RUPs UTS of a private applicator) per private applicator

 Under this potential requirement, UTS app licator labor would be replaced by private applicator labor (at a higher wage rate)

 The wage rate for a private applicator is $51.96 per hour [insert source and year]

Table: Private Sup- 04; Step 2; Labor Cost of Potential Requirement, per No n-Certified Applicator UTS of a Private Applicator; All Jurisdictions Action Wage ($/hour) Time (hours) Frequency (per year, per UTS) Cost ($)

Labor, private applicator 51.96 56 1 2,910*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Total 2,910

Step 3 – Estimate Regional Level Baseline and Compliance Costs

Terms and Definitions:

 UTS applicator: noncertified applicator w ho applies RUPs under the supervision of a private applicator

 N UTS Xst Pvt is the number of noncertified applicators who apply RUPs under the supervision of existing private applicators
Assumptions:

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline unit cost (UC B , or, cost r,i, a B ) is the annual baseline cost, per noncertified applicator applying RUPs UTS of a private applicator, presente d in Step 1. To avoid the appearance of cost-savings, the baseline cost in jurisdictions whose requirements meet or exceed the option are constrained to equal the cost of the option

 The potential requirement unit cost (UC P , or, cost r,i, a P ) is the annual cost under the potential requirement, per noncertified applic ator applying RUPs under the supervision of a private applicator, presented in Step 2

 There are no data on the numb er of UTS applicators. EPA has estimated the number in each jurisdiction (see EA chapter 3.3.4)

 The baseline jurisdictional cost (RC B ) is the total a nnual jurisdictional cost to firms employing noncertified applicators who a pply RUPs UTS of private applicators

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost under the potential requi rement to firms employing noncertified applicators who apply RUPs UTS of private applicators

Given the above: RC B = cost r,i, a B x N UTS Xst Pvt RC P = cost r,i, a P x N UTS Xst Pvt
Values are presented in the table below.

Table: Private Sup-04; Employers of UTS Applicators; Step 3; Total Annual Regional Baseline and Potential Requirement Costs for Applicators UTS of Private Applicators; All Jurisdictions Region UC B ($) UC P ($) N UTS Xst Pvt RC B ($) RC P ($) Alabama 1,204 2,910 827 995,309 2,406,337 Alaska 1,204 2,910 10 12,035 29,097 Arizona 1,204 2,910 44 52,955 128,028 Arkansas 1,204 2,910 4,512 5,430,271 13,128,650 California 2,910 2,910 4,790 13,937,552 13,937,552*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Colorado 2,910 2,910 1,029 2,994,100 2,994,100 Connecticut 1,204 2,910 56 67,397 162,944 Delaware 1,204 2,910 279 335,781 811,811 Florida 1,204 2,910 526 633,050 1,530,512 Georgia 1,204 2,910 4,040 4,862,210 11,755,263 Hawaii 1,204 2,910 35 42,123 101,840 Idaho 1,204 2,910 801 964,017 2,330,685 Illinois 1,204 2,910 5,007 6,026,012 14,568,961 Indiana 1,204 2,910 3,105 3,736,922 9,034,676 Iowa 2,910 2,910 0.000 0 0 Kansas 1,204 2,910 3,367 4,052,243 9,797,022 Kentucky 1,204 2,910 1,083 1,303,409 3,151,225 Louisiana 1,204 2,910 1,226 1,475,512 3,567,315 Maine 1,204 2,910 128 154,050 372,444 Maryland 1,204 2,910 750 902,638 2,182,289 Massachusetts 1,204 2,910 124 149,236 360,805 Michigan 1,204 2,910 1,446 1,740,286 4,207,453 Minnesota 1,204 2,910 0.000 0 0 Mississippi 1,204 2,910 1,729 2,080,882 5,030,903 Missouri 1,204 2,910 2,680 3,225,427 7,798,046 Montana 1,204 2,910 1,484 1,786,020 4,318,022 Nebraska 1,204 2,910 7,685 9,249,031 22,361,187 Nevada 1,204 2,910 56 67,397 162,944 New Hampshire 1,204 2,910 36 43,327 104,750 New Jersey 1,204 2,910 238 286,437 692,513 New Mexico 1,204 2,910 253 304,490 736,159 New York 1,204 2,910 1,389 1,671,686 4,041,599 North Carolina 1,204 2,910 3,685 4,434,962 10,722,313 North Dakota 1,204 2,910 4,043 4,865,821 11,763,992 Ohio 1,204 2,910 3,028 3,644,251 8,810,628 Oklahoma 1,204 2,910 1,437 1,729,455 4,181,266 Oregon 1,204 2,910 669 805,153 1,946,602 Pennsylvania 1,204 2,910 3,451 4,153,339 10,041,439 Rhode Island 1,204 2,910 17 20,460 49,465 South Carolina 1,204 2,910 783 942,354 2,278,310 South Dakota 1,204 2,910 0.000 0 0 Tennessee 1,204 2,910 865 1,041,043 2,516,907 Texas 1,204 2,910 3,846 4,628,728 11,190,778 Utah 1,204 2,910 178 214,226 517,930 Vermont 1,204 2,910 89 107,113 258,965 Virginia 1,204 2,910 668 803,950 1,943,692 Washington 1,204 2,910 2,733 3,289,213 7,952,261 West Virginia 1,204 2,910 69 83,043 200,771 Wisconsin 1,204 2,910 3,045 3,664,711 8,860,093*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Wyoming 1,204 2,910 964 1,160,191 2,804,969 Puerto Rico 1,204 2,910 3,324 4,000,492 9,671,905 Other 1,204 2,910 49 58,972 142,576 Total 81,678 108,229,281 237,659,995

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third year, non-certified applic ators applying RUPs under the supervision of a private applicator would n eed to need to do so w ithin the direct line of sight of a supervising private app licator. Costs would remain constant in subsequent years. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 In this case, the number of UTS applicators is assumed to remain constant. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Sup-04; Employers of UTS Applic ators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 16,400 8,745 7,655 Alaska 198 106 93*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Arizona 873 465 407 Arkansas 89,475 47,711 41,764 California 122,457 122,457 0 Colorado 26,306 26,306 0 Connecticut 1,111 592 518 Delaware 5,533 2,950 2,582 Florida 10,431 5,562 4,869 Georgia 80,115 42,720 37,395 Hawaii 694 370 324 Idaho 15,884 8,470 7,414 Illinois 99,291 52,945 46,346 Indiana 61,573 32,833 28,740 Iowa 0 0 0 Kansas 66,769 35,603 31,166 Kentucky 21,476 11,452 10,024 Louisiana 24,312 12,964 11,348 Maine 2,538 1,354 1,185 Maryland 14,873 7,931 6,942 Massachusetts 2,459 1,311 1,148 Michigan 28,675 15,290 13,384 Minnesota 0 0 0 Mississippi 34,287 18,283 16,004 Missouri 53,146 28,339 24,807 Montana 29,428 15,692 13,736 Nebraska 152,397 81,263 71,134 Nevada 1,111 592 518 New Hampshire 714 381 333 New Jersey 4,720 2,517 2,203 New Mexico 5,017 2,675 2,342 New York 27,544 14,688 12,857 North Carolina 73,075 38,966 34,109 North Dakota 80,174 42,752 37,423 Ohio 60,047 32,019 28,028 Oklahoma 28,496 15,195 13,301 Oregon 13,267 7,074 6,192 Pennsylvania 68,435 36,492 31,943 Rhode Island 337 180 157 South Carolina 15,527 8,280 7,248 South Dakota 0 0 0 Tennessee 17,153 9,147 8,007 Texas 76,268 40,669 35,599 Utah 3,530 1,882 1,648 Vermont 1,765 941 824 Virginia 13,247 7,064 6,183*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Washington 54,197 28,899 25,297 West Virginia 1,368 730 639 Wisconsin 60,384 32,199 28,185 Wyoming 19,117 10,194 8,923 Puerto Rico 65,916 35,149 30,768 Other 972 518 454

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of PV IC (see Steps 4 & 5) for all regions

 Per private applicator incremental cost = NI C (U.S., annualized value) ÷ (sum of private applicators for all jurisdictions)

 3% discount rate used for PV and annualized value

Table: Private Sup-04; Employers of UTS Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000)
U.S. (present value) 1,653,079 950,914 702,165

U.S. (annualized value) 188,147 108,229 79,918

Cost per private applicator 0.176

3.2.2.2 Private Sup-05: Non-Certified Applic ators must have method of immediate Communication with Certified Private Applicator

Based on the EPA's poll of 5 states (NC, CA, IN, FL, & WY), EPA assumes that in the baseline, in all 50 states, Puerto Rico, and Other, nonc ertified applicators applying RUPs under the supervision of a private applic ator currently use existing cell phones to communicate with that supervisor. Therefore, the immediate communica tion requirement of Priv ate Sup-05 is already being met, and there is zero incremental cost imposed by this requirement.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***



## 4 Minimum Age

4.1 Commercial Applicators

4.1.1 Certified Applicators

Step 1 - Calculate Labor Baseline Costs per Adol escent Certified Commercial Applicator
There are 31 states that currently have a minimu m age requirement of 18. In those states that currently have no minimum age requirement, a nd therefore have some commercial applicators under 18, employers under this potential requirement would have to pay adult commercial applicators for the hours curren tly spent by adolescents worki ng with RUPs. The difference between the cost of paying a dult commercial applicators for this time, and the cost for adolescents at a lower average wage rate, is the co st of this requirement. The baseline cost per commercial applicator currently under 18, to employers of paying their wages while working with RUPs, is calculated using the national average wage rate.
Baseline Age Eligibility Requirement for Commercial Certification:

 31 states require commercial applicators to be 18 or older; 16 stat es require commercial applicators to be 16 or have no minimum age requirement Assumptions:

 EPA assumes there are no commercial a pplicators under age 16 due to various restrictions including age requirements for driving a vehicle, requirements to attend school, and general liability concerns.

 The numbers of adolescent commercial appl icators are estimated by in Chapter 3.3.1. See Table 3.3-2.

 Adolescent applicators are assu med to receive a wage rate that is 75% of their adult counterparts; the loaded wage rate is cal culated to be $16.12 per hour. See Chapter 3.3.5.

 Commercial applicators age 16 and 17 work on average 448 hours per year as commercial applicators. This is estimated assuming that they work an average of 40 hours per week for 16 weeks, with 70% of th eir time working with RUPs (40 x 16 x 0.7 = 448).
Baseline Cost per Commercial Applicator Under Age 18

Action Wage ($/hour) Time (hours) Frequency (per commercial <18, per year) Cost ($) Labor 16.12 448 1 7,221

4.1.1.1 Comm Age-01: Minimum Age of 16

No impact.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

4.1.1.2 Comm Age-02: Minimum Age of 18

Step 2 - Calculate Costs of Potential Requiremen t per Current Commercial Applicator Under Age 18
Age Eligibility Requirement for Commercial Certification:

 Commercial applicators must be 18 or older, starting in year 3 under a final rule. Applicators aged 16 or 17 at the time of the final rule would keep their certification, but would be 18 by year 4. Assumptions/Data:

 Employers would no longer employ adolescents as certified applicat ors to apply RUPs, but would replace that labor using commercial applicators that are 18 or older (adults).

 The amount of time that adult commercial ap plicators would work in place of the adolescent commercial app licators would be the same applicable time that the adolescents had previously worked applying RUPs (448 hours per year).

 The wage rate for adult commercial app licators is $21.49 [inser t source and year]

Table: Comm Age-02; Employers of Commercial Applicators; Step 2; Cost of Potential Requirement per Cu rrent Commercial Applicator under Age 18

Action Wage ($/hour) Time (hours) Frequency (per commercial <18, per year) Cost ($) Labor 21.49 448 1 9,628 Total

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline labor cost ( cost r,i, a B ) is presented in Step 1.

 The labor cost under the potential requirement ( cost r,i, a P ) is shown in Step 2.

 EPA assumes that 0.2% of co mmercial applicators are ag e 16 and 0.3% are age 17; 90% of commercial applicators certi fied at age 16 return to work at age 17. See Chapter 3.3.1.

 The baseline regional cost (RC B ) is the total annual regional co st of wages currently paid for commercial applicators under age 18 for hours spent working with RUPs.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for adult commercial applicators for hours work ed replacing a commercia l applicator age 16 or 17 that these adolescents currently spend working with RUPs.

 At implementation (EPA assumes in Year 3), adolescents who would normally be certified must be replaced by adults. Adoles cents already certified (age 17) may continue to apply RUPs). In Year 4, all ad olescents would be replaced by adults. Given the above:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

RC B = cost r,i, a B x (N 1st Com 16-17 + N Xst Com 16-17 ) RC t=3 P = cost r,i, a B x (N Xst Com 16-17 ) + cost r,i, a P x (N 16-17 1st Com ) RC t>3 P = cost r,i, a P x (N 16-17 1st Com + N 16-17 Xst Com )
Values are presented in the table below.

Table: Comm Age-02; Employers of Commercial Applicators; Step 3; Total Annual Regional Baseline and Po tential Requirement Costs to Employers for Adult Commercial Applicators Repl acing Adolescent Commercial Applicators

cost r,i, a B 7,221 7,221 RC B ($) RC t=3 P ($) RC t>3 P ($) cost r,i, a P 9,628 9,628 Region N 1st Com 16-17 N Xst Com 17 Alabama 0.0 0.0 0 0 0 Alaska 0.0 0.0 0 0 0 Arizona 0.0 0.0 0 0 0 Arkansas 0.0 0.0 0 0 0 California 0.0 0.0 0 0 0 Colorado 3.5 1.3 34,659 43,083 46,212 Connecticut 0.0 0.0 0 0 0 Delaware 0.0 0.0 0 0 0 Florida 0.0 0.0 0 0 0 Georgia 0.0 0.0 0 0 0 Hawaii 0.0 0.0 0 0 0 Idaho 0.0 0.0 0 0 0 Illinois 16.4 5.9 161,020 200,493 214,694 Indiana 5.9 2.2 58,487 72,688 77,983 Iowa 7.5 2.7 73,651 91,702 98,201 Kansas 0.0 0.0 0 0 0 Kentucky 14.5 5.2 142,247 177,146 189,662 Louisiana 0.0 0.0 0 0 0 Maine 0.0 0.0 0 0 0 Maryland 0.0 0.0 0 0 0 Massachusetts 0.0 0.0 0 0 0 Michigan 0.0 0.0 0 0 0 Minnesota 9.3 3.3 90,980 113,364 121,307 Mississippi 0.0 0.0 0 0 0 Missouri 0.0 0.0 0 0 0 Montana 1.4 0.5 13,719 17,089 18,292 Nebraska 5.5 2.0 54,155 67,393 72,206 Nevada 1.5 0.5 14,441 18,052 19,255 New Hampshire 0.0 0.0 0 0 0 New Jersey 0.0 0.0 0 0 0 New Mexico 3.3 1.2 32,493 40,436 43,324 New York 0.0 0.0 0 0 0 North Carolina 0.0 0.0 0 0 0 North Dakota 0.0 0.0 0 0 0 Ohio 7.0 2.5 68,596 85,444 91,461 Oklahoma 7.7 2.8 75,817 94,350 101,089*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Oregon 0.0 0.0 0 0 0 Pennsylvania 0.0 0.0 0 0 0 Rhode Island 0.3 0.1 2,888 3,610 3,851 South Carolina 0.0 0.0 0 0 0 South Dakota 4.0 1.4 38,991 48,619 51,989 Tennessee 6.7 2.4 65,708 81,834 87,610 Texas 8.5 3.1 83,759 104,218 111,679 Utah 4.7 1.7 46,212 57,524 61,616 Vermont 0.0 0.0 0 0 0 Virginia 0.0 0.0 0 0 0 Washington 0.0 0.0 0 0 0 West Virginia 1.2 0.5 12,275 15,163 16,367 Wisconsin 8.1 2.9 79,427 98,923 105,903 Wyoming 0.0 0.0 0 0 0 Puerto Rico 1.7 0.6 16,607 20,699 22,143 Other 1.2 0.5 12,275 15,163 16,367 Total 120 43 1,178,408 1,466,993 1,571,211

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements and one year for previ ously certified adolescen ts to reach the age requirement. The cost of labor would remain c onstant thereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Under this provision, first-time adolescent applicators would have to be replaced by adults the year the rule is implemented, whic h EPA assumes will be in Year 3 of the time horizon to allow states to revise their regulations. Certifica tions of adolescents at that time will not be revoked; they will be repla ced by adults in Year 4 of the time horizon.

 NPV RC P = Present Value of the Regional Cost of the Potential requirement

 NPV RC B = Present Value of the Baseline Regional Cost

 NPV IC = Present Value of the Regional Incremental Cost

 NPV IC = NPV RC P - NPV RC B
Table: Comm Age-02; Employers of Co mmercial Applicators; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 0 0 0 Alaska 0 0 0 Arizona 0 0 0 Arkansas 0 0 0 California 0 0 0 Colorado 380 305 76 Connecticut 0 0 0 Delaware 0 0 0 Florida 0 0 0 Georgia 0 0 0 Hawaii 0 0 0 Idaho 0 0 0 Illinois 1,767 1,415 352 Indiana 642 514 128 Iowa 808 647 161 Kansas 0 0 0 Kentucky 1,561 1,250 311 Louisiana 0 0 0 Maine 0 0 0 Maryland 0 0 0 Massachusetts 0 0 0 Michigan 0 0 0 Minnesota 999 799 199 Mississippi 0 0 0 Missouri 0 0 0 Montana 151 121 30 Nebraska 594 476 118 Nevada 159 127 32 New Hampshire 0 0 0 New Jersey 0 0 0 New Mexico 357 285 71 New York 0 0 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

North Carolina 0 0 0 North Dakota 0 0 0 Ohio 753 603 150 Oklahoma 832 666 166 Oregon 0 0 0 Pennsylvania 0 0 0 Rhode Island 32 25 6 South Carolina 0 0 0 South Dakota 428 343 85 Tennessee 721 577 144 Texas 919 736 183 Utah 507 406 101 Vermont 0 0 0 Virginia 0 0 0 Washington 0 0 0 West Virginia 135 108 27 Wisconsin 872 698 174 Wyoming 0 0 0 Puerto Rico 182 146 36 Other 135 108 27

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of NPV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of NPV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of NPV IC (see Steps 4 & 5) for all regions

 Per applicable applicator incremental co st = NIC (U.S., annualized value) ÷ (N Com 16-17 )

 3% discount rate used for PV and annualized value

Table: Comm Age-02; Employers of Commercial Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 12,932 10,354 2,579 U.S. (annualized value) 1,472 1,178 294 Per applicable applicator incremental cost 1.798*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

4.1.2 Non-certified Applicators

Step 1 - Calculate Labor Baseline Costs per Adolescent Non-certified Applicator

Four states – Iowa, Minnesota, New Hamphshi re, and South Dakota – do not allow non-certified applicators to apply RUPs under the supervision of a commercial appli cator. Six states – Maryland, Massachusetts, New Jersey, Vermont, Virg inia, and West Virginia – have a minimum age requirement of 18 for non-cert ified applicators. In other states, which currently have no minimum age requirement, under this potential requirement would require commercial applicators to replace any adolescents working w ith RUPs under their supervision with adults. The difference between the cost of paying adult applicator for this time and the cost for adolescents is the cost of this requirement.
Baseline Age Eligibility Requirement for Commercial Certification:

 Ten states have a minimum age requiremen t for non-certified applicators applying RUPs under the supervision of a commercial applicat or or do not allow non-certified applicators to apply RUPs Assumptions:

 EPA assumes there are no pesticide applicator s under age 16 due to various restrictions including age requirements fo r driving a vehicle, requirements to attend school, and general liability concerns.

 The numbers of adolescent non-certifie d applicators applying RUPs under the supervision of commercial a pplicators are estimated in Chapter 3.3.2. See Table 3.3-5.

 Adolescent applicators are assu med to receive a wage rate that is 75% of their adult counterparts; the loaded wage rate is calculated to be $13.76 ($13.755) per hour. See Chapter 3.3.5.

 Pesticide applicators age 16 and 17 work, on av erage, 320 hours per year applying RUPs. This is estimated assuming that they work an average of 40 hours per week for 16 weeks, with 50% of their time working with RUPs (40 x 16 x 0.5 = 320).

Baseline Cost per Non-certified Pesticide Applicator Under Age 18 Applying RUPs

Action Wage ($/hour) Time (hours) Frequency (per commercial <18, per year) Cost ($) Labor 13.76 320 1 4,401.60

4.1.2.1 Comm Age-03: Minimum Age of 16

No impact. EPA assumes that no commercial ente rprise employs pesticide applicators under the age of 16.

4.1.2.2 Comm Age-04: Minimum Age of 18*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 2 - Calculate Costs of Potential Requirement per Current Non-certified Applicator Under Age 18 under the supervision of a Commercial Applicator
Age Eligibility Requirement:

 Non-certified pesticide applicators must be 18 or older to apply RUPs , starting in year 3 under a final rule. Assumptions/Data:

 Employers would no longer employ adolescents to apply RUPs, but would replace that labor time using pesticide applicator s that are 18 or older (adults).

 The amount of time that adult commercial ap plicators would work in place of the adolescent commercial app licators would be the same applicable time that the adolescents had previously worked applying RUPs (320 hours per year).

 The wage rate for adult commercial a pplicators is $18.34 per hour (BLS, 2013a and 2013b)

Table: Comm Age-04; Step 2 Cost of Potential Requirement per Non-cert ified Applicator under Age 18 Applying RUPs

Action Wage ($/hour) Time (hours) Frequency (per commercial <18, per year) Cost ($) Labor 18.34 320 1 5,868.60

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline labor cost ( cost r,i, a B ) is presented in Step 1.

 The labor cost under the potential requirement ( cost r,i, a P ) is shown in Step 2.

 EPA assumes that 1.3% of non- certified pesticide applicat ors are age 16 to 17. See Chapter 3.3.2.

 The baseline regional cost (RC B ) is the total annual regional co st of wages currently paid for commercially employed non-certified pe sticide applicators under age 18 for hours spent working with RUPs.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for commercially employed adult non-certified pesticide applicators for hours worked replacing a commercial applic ator age 16 or 17 that these adolescents currently spend working with RUPs.

 At implementation (EPA assumes in Year 3), adolescents who would normally apply RUPs under the supervision of a commercial applicator would be replaced by adults. Given the above: RC B = cost r,i, a B x (N Com UTS 16-17 ) RC P = cost r,i, a P x (N Com UTS 16-17 )
Values are presented in the table below.

Table: Comm Age-04; Step 3*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Total Annual Regional Baseline and Po tential Requirement Costs to Commercial Employers for Adult Non-certified Applic ators Replacing Adolescent Non-certified Applicators

cost r,i, a B 4,402 RC B ($) RC P ($) cost r,i, a P 5,869 Jurisdiction N Com UTS <18 Alabama 117 514,987 686,650 Alaska 16 70,426 93,901 Arizona 174 765,878 1,021,171 Arkansas 93 409,349 545,798 California 958 4,216,733 5,622,310 Colorado 187 823,099 1,097,466 Connecticut 131 576,610 768,813 Delaware 71 312,514 416,685 Florida 848 3,732,557 4,976,742 Georgia 225 990,360 1,320,480 Hawaii 48 211,277 281,702 Idaho 140 616,224 821,632 Illinois 237 1,043,179 1,390,906 Indiana 345 1,518,552 2,024,736 Iowa 0 0 0 Kansas 201 884,722 1,179,629 Kentucky 363 1,597,781 2,130,374 Louisiana 115 506,184 674,912 Maine 37 162,859 217,146 Maryland 0 0 0 Massachusetts 0 0 0 Michigan 499 2,196,398 2,928,531 Minnesota 0 0 0 Mississippi 74 325,718 434,291 Missouri 260 1,144,416 1,525,888 Montana 48 211,277 281,702 Nebraska 299 1,316,078 1,754,771 Nevada 99 435,758 581,011 New Hampshire 0 0 0 New Jersey 0 0 0 New Mexico 36 158,458 211,277 New York 688 3,028,301 4,037,734 North Carolina 663 2,918,261 3,891,014 North Dakota 174 765,878 1,021,171 Ohio 451 1,985,122 2,646,829 Oklahoma 351 1,544,962 2,059,949 Oregon 171 752,674 1,003,565 Pennsylvania 540 2,376,864 3,169,152 Rhode Island 39 171,662 228,883*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

South Carolina 113 497,381 663,174 South Dakota 0 0 0 Tennessee 303 1,333,685 1,778,246 Texas 717 3,155,947 4,207,930 Utah 132 581,011 774,682 Vermont 0 0 0 Virginia 0 0 0 Washington 559 2,460,494 3,280,659 West Virginia 0 0 0 Wisconsin 391 1,721,026 2,294,701 Wyoming 61 268,498 357,997 Puerto Rico 217 955,147 1,273,530 Other 46 202,474 269,965 Total 11,237 49,460,779 65,947,706

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of labor would remain constant thereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm Age-04; Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 5,695 4,525 1,170 Alaska 779 619 160 Arizona 8,469 6,729 1,740 Arkansas 4,527 3,597 930 California 46,628 37,049 9,579 Colorado 9,102 7,232 1,870 Connecticut 6,376 5,066 1,310 Delaware 3,456 2,746 710 Florida 41,274 32,795 8,479 Georgia 10,951 8,701 2,250 Hawaii 2,336 1,856 480 Idaho 6,814 5,414 1,400 Illinois 11,535 9,165 2,370 Indiana 16,792 13,342 3,450 Iowa 0 0 0 Kansas 9,783 7,773 2,010 Kentucky 17,668 14,038 3,630 Louisiana 5,597 4,447 1,150 Maine 1,801 1,431 370 Maryland 0 0 0 Massachusetts 0 0 0 Michigan 24,287 19,298 4,990 Minnesota 0 0 0 Mississippi 3,602 2,862 740 Missouri 12,655 10,055 2,600 Montana 2,336 1,856 480 Nebraska 14,553 11,563 2,990 Nevada 4,819 3,829 990 New Hampshire 0 0 0 New Jersey 0 0 0 New Mexico 1,752 1,392 360 New York 33,487 26,607 6,880 North Carolina 32,270 25,640 6,630 North Dakota 8,469 6,729 1,740 Ohio 21,951 17,441 4,510 Oklahoma 17,084 13,574 3,510 Oregon 8,323 6,613 1,710 Pennsylvania 26,283 20,883 5,400 Rhode Island 1,898 1,508 390 South Carolina 5,500 4,370 1,130*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

South Dakota 0 0 0 Tennessee 14,748 11,718 3,030 Texas 34,898 27,728 7,170 Utah 6,425 5,105 1,320 Vermont 0 0 0 Virginia 0 0 0 Washington 27,208 21,618 5,590 West Virginia 0 0 0 Wisconsin 19,031 15,121 3,910 Wyoming 2,969 2,359 610 Puerto Rico 10,562 8,392 2,170 Other 2,239 1,779 460

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N Com UTS 16-17 )

 7% discount rate used for PV and annualized value

Table: Comm Age-04; Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 546,930 434,568 112,362 U.S. (annualized value) 62,249 49,461 12,789 Per applicator incremental cost 1.138



### 4.2 Private Applicators

4.2.1 Certified Applicators

Step 1 - Calculate Labor Baseline Costs per Ad olescent Certified Private Applicator
There are 16 states that currently have a mini mum age requirement of 18 for certified private applicators. One state has a minimum age of 17 and 17 others have a minimum age of 16. Under this potential requirement, agricultural establishments in jurisdictions with a minimum age*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

less than 18 would have to pay (e ither directly or by foregoing ot her tasks) an adult certified applicator for the hours currently spent by adol escents who are certified to apply RUPs. The difference between the cost of paying adult priv ate applicators for this time, and the cost for adolescents at a lower average wage ra te, is the cost of this requirement.
Baseline Age Eligibility Requirement for Commercial Certification:

 Sixteen states require commercial applicators to be 18 or older; 16 states or jurisdictions have no minimum age requirement Assumptions:

 The numbers of adolescent private applicator s are estimated in Chapter 3.3.3. See Table 3.3-7. EPA estimates that most adolescent private applicators are members of the owner/operator’s family (or is the owner/ operator), but a few adolescent private applicators are employed from outside the family.

 Adolescent applicators between 16 and 17 are assumed to receive a wage rate (opportunity cost of time) that is 60% of their adult counterpar ts; the loaded wage rate is calculated to be $31.18 per hour. Adolescent applicators under 16 receive a wage rate (opportunity cost of time) that is 50% of their adult counterpar ts; the loaded wage rate is calculated to be $25.98 per hour. See Chapter 3.3.5.

 Adolescent private applicators spend, on aver age, 56 hours per year applying RUPs. This is estimated assuming that an on-farm app licator makes 20 pesticide applications per year, averaging 4 hours per application, of which 70% are RUPs (20 x 4 x 0.7 = 56).

Baseline Cost per Private Applicator Under Age 18

Action Wage ($/hour) Time (hours) Frequency (per commercial <18, per year) Cost ($) RUP applications by 14- 15 year old certified private applicator 25.98 56 1 1,454.85

RUP applications by 16- 17 year old certified private applicator 31.18 56 1 1,745.82

4.2.1.1 Private Age-01: Minimum Age of 16

Step 2 - Calculate Costs of Potential Requirem ent per Private Applicator Under Age 16
Age Eligibility Requirement for Private Certification:

 New private applicators must be 16 or olde r to apply RUPs, star ting in year 3 under a final rule. Anyone already certifi ed may continue to apply RUPs. Assumptions/Data:

 Certified applicators over 18 years of age would repla ce the labor time of certified adolescents under 16 years of age.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The amount of time that adult private applicat ors would work in plac e of the adolescent private applicators would be the same applicab le time that the adolescents had previously worked applying RUPs (56 hours per year).

 The wage rate for adult private appli cators is $51.96 per hour (BLS, 2013a and 2013b)

 Private applicators must be 16 or older, starting in year 3 und er a final rule. Applicators aged 14 or 15 at the time of the final rule would keep their certification.

Table: Private Age-01; Step 2 Cost of Potential Requirement per Pri vate Applicator under Age 16 Applying RUPs

Action Wage ($/hour) Time (hours) Frequency (per commercial <18, per year) Cost ($) RUP applications by adult certified private applicator 51.96 56 1 2,909.70

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline labor cost ( cost r,i, a B ) is presented in Step 1.

 The labor cost under the potential requirement ( cost r,i, a P ) is shown in Step 2.

 EPA estimates the number of private applic ators under 16 based to the proportion of farms with principle operators under 25 in each state (NASS, 2014c). See Chapter 3.3.3.

 The baseline regional cost (RC B ) is the total annual regional co st of wages currently paid for private applicators under age 18 for hours spent working with RUPs.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for adult private applicators for hours worked re placing a private app licator under 16 that these adolescents currently spend working with RUPs.

 At implementation (EPA assumes in Year 3), adolescents who would normally be certified must be replaced by adults. Adoles cents already certified (age 15) may continue to apply RUPs). In Year 4, all adolescen ts under 16 would be replaced by adults. Given the above: RC B = cost r,i, 14-15 B x (N 1st Pvt 14-15 + N Xst Pvt 14-15 ) + cost r,i, 16-17 B x (N 1st Pvt 16-17 + N Xst Pvt 16-17 ) RC t=3 P = cost r,i, a B x (N Xst Pvt 14-15 ) + cost r,i, a P x (N 1st Pvt 14-15 ) +
cost r,i, 16-17 B x (N 1st Pvt 16-17 + N Xst Pvt 16-17 ) RC t>3 P = cost r,i, a P x (N 1st Pvt 14-15 + N Xst Pvt 14-15 ) + cost r,i, 16-17 B x (N 1st Pvt 16-17 + N Xst Pvt 16-17 )
Values are presented in the table below.

Table: Private Age-01; Step 3; Total Annual Regional Baseline Labor Cost s for Adult Private Applicators Replacing Adolescent Private Applicators under 16 years of Age

N 1st Pvt
14-15 N Xst Pvt
14-15 N 1st Pvt
16-17 N Xst Pvt
16 N Xst Pvt 17 N 1st Pvt 17
Hired RC B ($) cost r,i, a B 1,455 1,746*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Region Alabama 0.0 0.0 0.0 0.0 0.0 0.0 0 Alaska 0.0 0.0 0.1 0.0 0.0 0.0 175 Arizona 1.1 0.5 0.6 0.9 0.9 0.1 6,693 Arkansas 0.0 0.0 0.0 0.0 0.0 0.0 0 California 1.9 1.1 1.1 1.6 1.7 0.2 12,397 Colorado 1.2 0.6 0.6 1.0 1.0 0.1 7,333 Connecticut 0.0 0.0 0.0 0.0 0.0 0.0 0 Delaware 0.0 0.0 0.0 0.0 0.0 0.0 0 Florida 0.0 0.0 0.0 0.0 0.0 0.0 0 Georgia 0.0 0.0 1.6 0.0 1.0 0.1 4,714 Hawaii 0.0 0.0 0.0 0.0 0.0 0.0 0 Idaho 0.0 0.0 0.0 0.0 0.0 0.0 0 Illinois 0.0 0.0 5.6 0.0 3.5 0.4 16,588 Indiana 0.0 0.0 3.4 0.0 2.2 0.3 10,302 Iowa 4.7 2.6 2.4 4.0 4.1 0.5 29,828 Kansas 2.8 1.5 1.5 2.3 2.3 0.3 17,431 Kentucky 0.0 0.0 4.4 0.0 2.7 0.4 13,096 Louisiana 0.0 0.0 1.6 0.0 1.0 0.1 4,714 Maine 0.0 0.0 0.6 0.0 0.5 0.0 1,921 Maryland 0.0 0.0 0.9 0.0 0.5 0.1 2,619 Massachusetts 0.0 0.0 0.0 0.0 0.0 0.0 0 Michigan 0.0 0.0 0.0 0.0 0.0 0.0 0 Minnesota 3.3 1.8 1.7 2.8 2.8 0.4 20,865 Mississippi 0.0 0.0 0.0 0.0 0.0 0.0 0 Missouri 0.0 0.0 0.0 0.0 0.0 0.0 0 Montana 1.0 0.5 0.5 0.8 0.8 0.1 6,024 Nebraska 0.0 0.0 4.9 0.0 3.1 0.4 14,667 Nevada 0.0 0.0 0.1 0.0 0.1 0.0 349 New Hampshire 0.0 0.0 0.0 0.0 0.0 0.0 0 New Jersey 0.0 0.0 0.0 0.0 0.0 0.0 0 New Mexico 1.7 0.9 1.0 1.4 1.4 0.2 10,767 New York 0.0 0.0 1.9 0.0 0.0 0.5 4,191 North Carolina 0.0 0.0 2.4 0.0 1.5 0.2 7,159 North Dakota 0.0 0.0 0.0 0.0 0.0 0.0 0 Ohio 3.6 2.0 1.8 3.1 3.1 0.4 22,814 Oklahoma 3.4 1.9 1.8 2.9 3.0 0.4 21,854 Oregon 0.0 0.0 0.0 0.0 0.0 0.0 0 Pennsylvania 0.0 0.0 4.6 0.0 2.9 0.4 13,794 Rhode Island 0.0 0.0 0.1 0.0 0.1 0.0 349 South Carolina 0.0 0.0 0.0 0.0 0.0 0.0 0 South Dakota 2.0 1.1 1.1 1.7 1.7 0.2 12,717 Tennessee 2.0 1.1 1.1 1.7 1.7 0.2 12,717 Texas 6.3 3.5 3.2 5.3 5.3 0.7 39,576 Utah 0.0 0.0 0.9 0.0 0.5 0.1 2,619 Vermont 0.0 0.0 0.2 0.0 0.2 0.0 698 Virginia 0.0 0.0 1.9 0.0 1.2 0.2 5,762*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Washington 0.0 0.0 1.9 0.0 1.3 0.1 5,762 West Virginia 0.4 0.3 0.2 0.4 0.5 0.0 2,939 Wisconsin 0.0 0.0 3.8 0.0 2.3 0.3 11,175 Wyoming 0.0 0.0 0.6 0.0 0.4 0.1 1,921 Puerto Rico 0.1 0.0 0.1 0.1 0.1 0.0 669 Other 1.3 0.6 0.7 1.1 1.1 0.2 8,177 Total 37 20 61 31 57 8 335,375

Table: Private Age-01; Step 3; Total Annual Regional Potent ial Requirement Labor Costs for Adult Private Applicators Replacing Adolescent Private A pplicators under 16 years of Age N 1st Pvt 14-15 N Xst Pvt 14-15 N Pvt 16-17 RC t=3 P ($) RC t>3 P ($) cost r,i, a B 2,910 1,746 Region Alabama 0.0 0.0 0.0 0 0 Alaska 0.0 0.0 0.1 175 175 Arizona 1.1 0.5 2.5 8,293 9,021 Arkansas 0.0 0.0 0.0 0 0 California 1.9 1.1 4.6 15,161 16,761 Colorado 1.2 0.6 2.7 9,079 9,952 Connecticut 0.0 0.0 0.0 0 0 Delaware 0.0 0.0 0.0 0 0 Florida 0.0 0.0 0.0 0 0 Georgia 0.0 0.0 2.7 4,714 4,714 Hawaii 0.0 0.0 0.0 0 0 Idaho 0.0 0.0 0.0 0 0 Illinois 0.0 0.0 9.5 16,588 16,588 Indiana 0.0 0.0 5.9 10,302 10,302 Iowa 4.7 2.6 11.0 36,665 40,448 Kansas 2.8 1.5 6.4 21,505 23,687 Kentucky 0.0 0.0 7.5 13,096 13,096 Louisiana 0.0 0.0 2.7 4,714 4,714 Maine 0.0 0.0 1.1 1,921 1,921 Maryland 0.0 0.0 1.5 2,619 2,619 Massachusetts 0.0 0.0 0.0 0 0 Michigan 0.0 0.0 0.0 0 0 Minnesota 3.3 1.8 7.7 25,666 28,285 Mississippi 0.0 0.0 0.0 0 0 Missouri 0.0 0.0 0.0 0 0 Montana 1.0 0.5 2.2 7,479 8,206 Nebraska 0.0 0.0 8.4 14,667 14,667 Nevada 0.0 0.0 0.2 349 349 New Hampshire 0.0 0.0 0.0 0 0 New Jersey 0.0 0.0 0.0 0 0 New Mexico 1.7 0.9 4.0 13,240 14,550 New York 0.0 0.0 2.4 4,191 4,191 North Carolina 0.0 0.0 4.1 7,159 7,159*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

North Dakota 0.0 0.0 0.0 0 0 Ohio 3.6 2.0 8.4 28,052 30,962 Oklahoma 3.4 1.9 8.1 26,801 29,565 Oregon 0.0 0.0 0.0 0 0 Pennsylvania 0.0 0.0 7.9 13,794 13,794 Rhode Island 0.0 0.0 0.2 349 349 South Carolina 0.0 0.0 0.0 0 0 South Dakota 2.0 1.1 4.7 15,626 17,227 Tennessee 2.0 1.1 4.7 15,626 17,227 Texas 6.3 3.5 14.5 48,742 53,834 Utah 0.0 0.0 1.5 2,619 2,619 Vermont 0.0 0.0 0.4 698 698 Virginia 0.0 0.0 3.3 5,762 5,762 Washington 0.0 0.0 3.3 5,762 5,762 West Virginia 0.4 0.3 1.1 3,521 3,958 Wisconsin 0.0 0.0 6.4 11,175 11,175 Wyoming 0.0 0.0 1.1 1,921 1,921 Puerto Rico 0.1 0.0 0.3 815 815 Other 1.3 0.6 3.1 10,068 10,941 Total 37 20 156 408,914 438,012

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements and one year for previ ously certified adolescen ts to reach the age requirement. The cost of labor would remain c onstant thereafter. The PV of costs under the proposal, at a 3% discount rate, is ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ

ܥܴ ௜,௥ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ଶ ଵ଴

௧ୀଷ ܥܴ ൅ ௜,௥ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ

ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Age-01; Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 0 0 0 Alaska 2 2 0 Arizona 74 59 15 Arkansas 0 0 0 California 137 109 28 Colorado 81 64 17 Connecticut 0 0 0 Delaware 0 0 0 Florida 0 0 0 Georgia 41 41 0 Hawaii 0 0 0 Idaho 0 0 0 Illinois 146 146 0 Indiana 91 91 0 Iowa 331 262 69 Kansas 194 153 41 Kentucky 115 115 0 Louisiana 41 41 0 Maine 17 17 0 Maryland 23 23 0 Massachusetts 0 0 0 Michigan 0 0 0 Minnesota 231 183 48 Mississippi 0 0 0 Missouri 0 0 0 Montana 67 53 14 Nebraska 129 129 0 Nevada 3 3 0 New Hampshire 0 0 0 New Jersey 0 0 0 New Mexico 119 95 25 New York 37 37 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

North Carolina 63 63 0 North Dakota 0 0 0 Ohio 253 200 53 Oklahoma 242 192 50 Oregon 0 0 0 Pennsylvania 121 121 0 Rhode Island 3 3 0 South Carolina 0 0 0 South Dakota 141 112 29 Tennessee 141 112 29 Texas 440 348 92 Utah 23 23 0 Vermont 6 6 0 Virginia 51 51 0 Washington 51 51 0 West Virginia 32 26 7 Wisconsin 98 98 0 Wyoming 17 17 0 Puerto Rico 7 6 1 Other 90 72 18

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N Pvt 14-15 )

 7% discount rate used for PV and annualized value

Table: Private Age-01; Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 3,658 3,122 536 U.S. (annualized value) 416 355 61 Per applicator incremental cost 0.410*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

4.2.1.2 Private Age-02: Minimum Age of 18

Step 2 - Calculate Costs of Potential Requirem ent per Private Applicator Under Age 18
Age Eligibility Requirement for Private Certification:

 New private applicators must be 18 or olde r to apply RUPs, star ting in year 3 under a final rule. Anyone already certifi ed may continue to apply RUPs. Assumptions/Data:

 Certified applicators over 18 years of age would repla ce the labor time of certified adolescents under 18 years of age.

 The amount of time that adult private applicat ors would work in plac e of the adolescent private applicators would be the same applicab le time that the adolescents had previously worked applying RUPs (56 hours per year).

 The wage rate for adult private appli cators is $51.96 per hour (BLS, 2013a and 2013b)

 Private applicators must be 16 or older, starting in year 3 und er a final rule. Applicators aged 14 or 15 at the time of the final rule would keep their certification.

Table: Private Age-02; Step 2 Cost of Potential Requirement per Pri vate Applicator under Age 18 Applying RUPs

Action Wage ($/hour) Time (hours) Frequency (per commercial <18, per year) Cost ($) RUP applications by adult certified private applicator 51.96 56 1 2,909.70

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline labor cost ( cost r,i, a B ) is presented in Step 1.

 The labor cost under the potential requirement ( cost r,i, a P ) is shown in Step 2.

 EPA estimates the number of private applic ators under 18 based to the proportion of farms with principle operators under 25 in each state (NASS, 2014c). See Chapter 3.3.3.

 The baseline regional cost (RC B ) is the total annual regional co st of wages currently paid for private applicators under age 18 for hours spent working with RUPs.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for adult private applicators for hours worked re placing a private app licator under 18 that these adolescents currently spend working with RUPs.

 At implementation (EPA assumes in Year 3), adolescents who would normally be certified must be replaced by adults. A dolescents already certified (ages 15-17) may continue to apply RUPs). In Year 4, all adolescents under 16 would be replaced by adults. In Year 5, all adoles cents under 17 would be replace d by adults and by Year 6, all private certified applicators will be at least 18 years of age. Given the above:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

RC B = cost r,i, 14-15 B x (N 1st Pvt 14-15 + N Xst Pvt 14-15 ) + cost r,i, 16-17 B x (N 1st Pvt 16-17 + N Xst Pvt 16-17 ) RC t=3 P = cost r,i, a P x (N 1st Pvt 14-15 + N 1st Pvt 16-17 ) + cost r,i, a B x (N Xst Pvt 14-15 + N Xst Pvt 16-17 ) RC t=4 P = cost r,i, a P x (N 1st Pvt 14-15 + N 1st Pvt 16-17 + N Xst Pvt 14-15 ) + cost r,i, 16-17 B x (N Xst Pvt 16-17 ) RC t=5 P = cost r,i, a P x (N 1st Pvt 14-15 + N 1st Pvt 16-17 + N Xst Pvt 14-16 ) + cost r,i, 16-17 B x (N Xst Pvt 17 ) RC t>5 P = cost r,i, a P x (N 1st Pvt 14-15 + N Xst Pvt 14-15 + N 1st Pvt 16-17 + N Xst Pvt 16-17 )
Values are presented in the table below.

Table: Private Age-02; Step 3; Total Annual Regional Baseline Labor Cost s for Adult Private Applicators Replacing Adolescent Private Applicators under 18 years of Age

N 1st Pvt
14-15 N Xst Pvt
14-15 N 1st Pvt
16-17 N Xst Pvt
16 N Xst Pvt 17 N 1st Pvt 17
Hired RC B ($) cost r,i, a B 1,455 1,746 Region Alabama 0.0 0.0 0.0 0.0 0.0 0.0 0 Alaska 0.0 0.0 0.1 0.0 0.0 0.0 175 Arizona 1.1 0.5 0.6 0.9 0.9 0.1 6,693 Arkansas 0.0 0.0 0.0 0.0 0.0 0.0 0 California 1.9 1.1 1.1 1.6 1.7 0.2 12,397 Colorado 1.2 0.6 0.6 1.0 1.0 0.1 7,333 Connecticut 0.0 0.0 0.0 0.0 0.0 0.0 0 Delaware 0.0 0.0 0.0 0.0 0.0 0.0 0 Florida 0.0 0.0 0.0 0.0 0.0 0.0 0 Georgia 0.0 0.0 1.6 0.0 1.0 0.1 4,714 Hawaii 0.0 0.0 0.0 0.0 0.0 0.0 0 Idaho 0.0 0.0 0.0 0.0 0.0 0.0 0 Illinois 0.0 0.0 5.6 0.0 3.5 0.4 16,588 Indiana 0.0 0.0 3.4 0.0 2.2 0.3 10,302 Iowa 4.7 2.6 2.4 4.0 4.1 0.5 29,828 Kansas 2.8 1.5 1.5 2.3 2.3 0.3 17,431 Kentucky 0.0 0.0 4.4 0.0 2.7 0.4 13,096 Louisiana 0.0 0.0 1.6 0.0 1.0 0.1 4,714 Maine 0.0 0.0 0.6 0.0 0.5 0.0 1,921 Maryland 0.0 0.0 0.9 0.0 0.5 0.1 2,619 Massachusetts 0.0 0.0 0.0 0.0 0.0 0.0 0 Michigan 0.0 0.0 0.0 0.0 0.0 0.0 0 Minnesota 3.3 1.8 1.7 2.8 2.8 0.4 20,865 Mississippi 0.0 0.0 0.0 0.0 0.0 0.0 0 Missouri 0.0 0.0 0.0 0.0 0.0 0.0 0 Montana 1.0 0.5 0.5 0.8 0.8 0.1 6,024 Nebraska 0.0 0.0 4.9 0.0 3.1 0.4 14,667 Nevada 0.0 0.0 0.1 0.0 0.1 0.0 349 New Hampshire 0.0 0.0 0.0 0.0 0.0 0.0 0 New Jersey 0.0 0.0 0.0 0.0 0.0 0.0 0 New Mexico 1.7 0.9 1.0 1.4 1.4 0.2 10,767 New York 0.0 0.0 1.9 0.0 0.0 0.5 4,191*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

North Carolina 0.0 0.0 2.4 0.0 1.5 0.2 7,159 North Dakota 0.0 0.0 0.0 0.0 0.0 0.0 0 Ohio 3.6 2.0 1.8 3.1 3.1 0.4 22,814 Oklahoma 3.4 1.9 1.8 2.9 3.0 0.4 21,854 Oregon 0.0 0.0 0.0 0.0 0.0 0.0 0 Pennsylvania 0.0 0.0 4.6 0.0 2.9 0.4 13,794 Rhode Island 0.0 0.0 0.1 0.0 0.1 0.0 349 South Carolina 0.0 0.0 0.0 0.0 0.0 0.0 0 South Dakota 2.0 1.1 1.1 1.7 1.7 0.2 12,717 Tennessee 2.0 1.1 1.1 1.7 1.7 0.2 12,717 Texas 6.3 3.5 3.2 5.3 5.3 0.7 39,576 Utah 0.0 0.0 0.9 0.0 0.5 0.1 2,619 Vermont 0.0 0.0 0.2 0.0 0.2 0.0 698 Virginia 0.0 0.0 1.9 0.0 1.2 0.2 5,762 Washington 0.0 0.0 1.9 0.0 1.3 0.1 5,762 West Virginia 0.4 0.3 0.2 0.4 0.5 0.0 2,939 Wisconsin 0.0 0.0 3.8 0.0 2.3 0.3 11,175 Wyoming 0.0 0.0 0.6 0.0 0.4 0.1 1,921 Puerto Rico 0.1 0.0 0.1 0.1 0.1 0.0 669 Other 1.3 0.6 0.7 1.1 1.1 0.2 8,177 Total 37 20 61 31 57 8 335,375

Table: Private Age-02; Step 3; Total Annual Regional Potent ial Requirement Labor Costs for Adult Private Applicators Replacing Adolescent Private Applicator s under 18 years of Age, Years 3 and 4 N 1st Pvt

14-15 N Xst Pvt
14-15 N 1st Pvt
16-17 N Xst Pvt
16-17 RC t=3 P ($) RC t=4 P ($) cost r,i, a B 2,910 1,455/2,910 2,910 1,746 Region Alabama 0.0 0.0 0.0 0.0 0 0 Alaska 0.0 0.0 0.1 0.0 291 291 Arizona 1.1 0.5 0.7 1.8 9,108 9,835 Arkansas 0.0 0.0 0.0 0.0 0 0 California 1.9 1.1 1.3 3.3 16,674 18,274 Colorado 1.2 0.6 0.7 2.0 9,894 10,767 Connecticut 0.0 0.0 0.0 0.0 0 0 Delaware 0.0 0.0 0.0 0.0 0 0 Florida 0.0 0.0 0.0 0.0 0 0 Georgia 0.0 0.0 1.7 1.0 6,693 6,693 Hawaii 0.0 0.0 0.0 0.0 0 0 Idaho 0.0 0.0 0.0 0.0 0 0 Illinois 0.0 0.0 6.0 3.5 23,570 23,570 Indiana 0.0 0.0 3.7 2.2 14,607 14,607 Iowa 4.7 2.6 2.9 8.1 40,040 43,823 Kansas 2.8 1.5 1.8 4.6 23,599 25,782 Kentucky 0.0 0.0 4.8 2.7 18,681 18,681 Louisiana 0.0 0.0 1.7 1.0 6,693 6,693*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Maine 0.0 0.0 0.6 0.5 2,619 2,619 Maryland 0.0 0.0 1.0 0.5 3,783 3,783 Massachusetts 0.0 0.0 0.0 0.0 0 0 Michigan 0.0 0.0 0.0 0.0 0 0 Minnesota 3.3 1.8 2.1 5.6 28,110 30,728 Mississippi 0.0 0.0 0.0 0.0 0 0 Missouri 0.0 0.0 0.0 0.0 0 0 Montana 1.0 0.5 0.6 1.6 8,177 8904 Nebraska 0.0 0.0 5.3 3.1 20,835 20,835 Nevada 0.0 0.0 0.1 0.1 466 466 New Hampshire 0.0 0.0 0.0 0.0 0 0 New Jersey 0.0 0.0 0.0 0.0 0 0 New Mexico 1.7 0.9 1.2 2.8 14,637 15,946 New York 0.0 0.0 2.4 0.0 6,983 6,983 North Carolina 0.0 0.0 2.6 1.5 10,184 10,184 North Dakota 0.0 0.0 0.0 0.0 0 0 Ohio 3.6 2.0 2.2 6.2 30,612 33,522 Oklahoma 3.4 1.9 2.2 5.9 29,361 32,125 Oregon 0.0 0.0 0.0 0.0 0 0 Pennsylvania 0.0 0.0 5.0 2.9 19,612 19,612 Rhode Island 0.0 0.0 0.1 0.1 466 466 South Carolina 0.0 0.0 0.0 0.0 0 0 South Dakota 2.0 1.1 1.3 3.4 17,139 18,740 Tennessee 2.0 1.1 1.3 3.4 17,139 18,740 Texas 6.3 3.5 3.9 10.6 53,280 58,372 Utah 0.0 0.0 1.0 0.5 3,783 3,783 Vermont 0.0 0.0 0.2 0.2 931 931 Virginia 0.0 0.0 2.1 1.2 8,206 8,206 Washington 0.0 0.0 2.0 1.3 8,089 8,089 West Virginia 0.4 0.3 0.2 0.9 3,754 4,190 Wisconsin 0.0 0.0 4.1 2.3 15,946 15,946 Wyoming 0.0 0.0 0.7 0.4 2,735 2,735 Puerto Rico 0.1 0.0 0.1 0.2 931 931 Other 1.3 0.6 0.9 2.2 11,116 11,989 Total 37 20 69 88 488,743 517,841

Table: Private Age-02; Step 3; Total Annual Regional Potent ial Requirement Labor Costs for Adult Private Applicators Replacing Adolescent Private Applicators under 18 years of Age, Years 5 and over N Pvt 14-15 N 1st Pvt 16-17 N Xst Pvt 16 N Xst Pvt 17

RC t=5 P ($) RC t>5 P ($) cost r,i, a B 2,910 1,746 Region Alabama 0.0 0.0 0.0 0 0 Alaska 0.0 0.1 0.0 291 291*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Arizona 1.6 1.6 0.9 10,883 11,930 Arkansas 0.0 0.0 0.0 0 0 California 3.0 2.9 1.7 20,136 22,114 Colorado 1.8 1.7 1.0 11,930 13.094 Connecticut 0.0 0.0 0.0 0 0 Delaware 0.0 0.0 0.0 0 0 Florida 0.0 0.0 0.0 0 0 Georgia 0.0 1.7 1.0 6,693 7,856 Hawaii 0.0 0.0 0.0 0 0 Idaho 0.0 0.0 0.0 0 0 Illinois 0.0 6.0 3.5 23,570 27,643 Indiana 0.0 3.7 2.2 14,607 17,168 Iowa 7.3 6.9 4.1 48,478 53,249 Kansas 4.3 4.1 2.3 28,458 31,134 Kentucky 0.0 4.8 2.7 18,681 21,823 Louisiana 0.0 1.7 1.0 6,693 7,856 Maine 0.0 0.6 0.5 2,619 3,201 Maryland 0.0 1.0 0.5 3,783 4,365 Massachusetts 0.0 0.0 0.0 0 0 Michigan 0.0 0.0 0.0 0 0 Minnesota 5.1 4.9 2.8 33,987 37,245 Mississippi 0.0 0.0 0.0 0 0 Missouri 0.0 0.0 0.0 0 0 Montana 1.5 1.4 0.8 9,835 10,766 Nebraska 0.0 5.3 3.1 20,835 24,442 Nevada 0.0 0.1 0.1 466 582 New Hampshire 0.0 0.0 0.0 0 0 New Jersey 0.0 0.0 0.0 0 0 New Mexico 2.6 2.6 1.4 17,575 19,204 New York 0.0 2.4 0.0 6,983 6,983 North Carolina 0.0 2.6 1.5 10,184 11,930 North Dakota 0.0 0.0 0.0 0 0 Ohio 5.6 5.3 3.1 37,129 40,737 Oklahoma 5.3 5.1 3.0 35,500 38.991 Oregon 0.0 0.0 0.0 0 0 Pennsylvania 0.0 5.0 2.9 19,612 22,987 Rhode Island 0.0 0.1 0.1 466 582 South Carolina 0.0 0.0 0.0 0 0 South Dakota 3.1 3.0 1.7 20,178 22,696 Tennessee 3.1 3.0 1.7 20,178 22,696 Texas 9.8 9.2 5.3 64,540 70,707 Utah 0.0 1.0 0.5 3,783 4,365 Vermont 0.0 0.2 0.2 931 1,164 Virginia 0.0 2.1 1.2 8,206 9,602 Washington 0.0 2.0 1.3 8,089 9,602 West Virginia 0.7 0.6 0.5 4,656 5,238 Wisconsin 0.0 4.1 2.3 15,946 18,622 Wyoming 0.0 0.7 0.4 2,735 3,201*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Puerto Rico 0.1 0.2 0.1 1,048 1,164 Other 1.9 2.0 1.1 13,269 14,549 Total 57 100 57 554,031 619,779

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements and three years for previ ously certified adolesce nts to reach the age requirement. The cost of labor would remain c onstant thereafter. The PV of costs under the proposal, at a 3% discount rate, is ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ

ܥܴ ௜,௥ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧ୀସ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଷ ൅

ܥܴ ௜,௥ ௉ ௧ୀହ ∙ 1 ሺ 1 ൅ 0.03 ሻ ସ ൅ ܴܥ ௥,௜ ௉ ௧வହ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀ଺ ൌ

ܥܴ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧ୀସ ܥܴ ൅ 0.92 ∙ ௜,௥ ௉ ௧ୀହ ܥܴ ൅ 0.89 ∙ ௜,௥ ௉ ௧வଷ ∙ 4.07

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 Under this provision, first-time adolescent applicators would have to be replaced by adults the year the rule is implemented, whic h EPA assumes will be in Year 3 of the time horizon to allow states to revise their regulations. Certifica tions of adolescents at that time will not be revoked; they will be replaced by adults in Years 4-6 of the time horizon.

 NPV RC P = Present Value of the Regional Cost of the Potential requirement

 NPV RC B = Present Value of the Baseline Regional Cost

 NPV IC = Present Value of the Regional Incremental Cost

 NPV IC = NPV RC P - NPV RC B*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Age-02; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 0 0 0 Alaska 2 2 1 Arizona 89 59 30 Arkansas 0 0 0 California 165 109 56 Colorado 98 64 33 Connecticut 0 0 0 Delaware 0 0 0 Florida 0 0 0 Georgia 60 41 18 Hawaii 0 0 0 Idaho 0 0 0 Illinois 210 146 64 Indiana 130 91 40 Iowa 396 262 134 Kansas 232 153 79 Kentucky 166 115 51 Louisiana 60 41 18 Maine 24 17 7 Maryland 33 23 10 Massachusetts 0 0 0 Michigan 0 0 0 Minnesota 277 183 94 Mississippi 0 0 0 Missouri 0 0 0 Montana 80 53 27 Nebraska 186 129 57 Nevada 4 3 1 New Hampshire 0 0 0 New Jersey 0 0 0 New Mexico 143 95 49 New York 56 37 19 North Carolina 91 63 28 North Dakota 0 0 0 Ohio 303 200 103 Oklahoma 290 192 98 Oregon 0 0 0 Pennsylvania 175 121 53 Rhode Island 4 3 1 South Carolina 0 0 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

South Dakota 169 112 57 Tennessee 169 112 57 Texas 527 348 179 Utah 33 23 10 Vermont 9 6 3 Virginia 73 51 22 Washington 73 51 22 West Virginia 39 26 13 Wisconsin 142 98 43 Wyoming 24 17 7 Puerto Rico 9 6 3 Other 109 72 37

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of NPV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of NPV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of NPV IC (see Steps 4 & 5) for all regions

 Per applicable applicator incremental co st = NIC (U.S., annualized value) ÷ (N Pvt 14-17 )

 3% discount rate used for PV and annualized value

Table: Private Age-02; Employers of Commercial Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 4,649 3,122 1,527 U.S. (annualized value) 529 355 174 Per applicable applicator incremental cost 1.168

4.2.1.3 Private Age-03: Minimum Age of 18; Mi nimum Age of 16 for Family Members

Step 2 - Calculate Costs of Potential Requirement per Private Applicator Under Age 18; 16 for Family Members
Age Eligibility Requirement for Private Certification:

 New private applicators must be 18 or olde r to apply RUPs, unless a member of the family operating the farm, starting in year 3 under a final rule. Anyone already certified may continue to apply RUPs.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Assumptions/Data:

 Certified applicators over 18 years of age would repla ce the labor time of certified adolescents under 18 (16) years of age.

 The amount of time that adult private applicat ors would work in plac e of the adolescent private applicators would be the same applicab le time that the adolescents had previously worked applying RUPs (56 hours per year).

 The wage rate for adult private appli cators is $51.96 per hour (BLS, 2013a and 2013b)

 Private applicators must be 16 or older, starting in year 3 und er a final rule. Applicators aged 14 or 15 at the time of the final rule would keep their certification.

Table: Private Age-03; Step 2 Cost of Potential Requirement per Private Applicator under Age 18 (16 Family) Applying RUPs

Action Wage ($/hour) Time (hours) Frequency (per commercial <18, per year) Cost ($) RUP applications by adult certified private applicator 51.96 56 1 2,909.70

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline labor cost ( cost r,i, a B ) is presented in Step 1.

 The labor cost under the potential requirement ( cost r,i, a P ) is shown in Step 2.

 EPA estimates the number of private app licators under 18, who are members of the family, based to the proportion of farms with principle operators unde r 25 in each state (NASS, 2014c). Hired private applicators under 18 are assumed to number 25% of the number of family members obtaining certification at age 17. See Chapter 3.3.3.

 The baseline regional cost (RC B ) is the total annual regional co st of wages currently paid for private applicators under age 18 for hours spent working with RUPs.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for adult private applicators for hours worked re placing a private app licator under 18 that these adolescents currently spend working with RUPs.

 At implementation (EPA assumes in Year 3), adolescents who would normally be certified must be replaced by adults. A dolescents already certified (ages 15-17) may continue to apply RUPs). In Year 4, all adolescents under 16 would be replaced by adults. In Year 5, all adoles cents under 17 would be replace d by adults and by Year 6, all private certified applicators will be at least 18 years of age. Given the above: RC B = cost r,i, 14-15 B x (N 1st Pvt 14-15 + N Xst Pvt 14-15 ) + cost r,i, 16-17 B x (N 1st Pvt 16-17 + N Xst Pvt 16-17 + N 1st Pvt Hired 17 ) RC t=3 P = cost r,i, a P x (N 1st Pvt 14-15 + N 1st Pvt Hired 17 ) + cost r,i, a B x (N Xst Pvt 14-15 + N 1st Pvt 16-17 + N Xst Pvt 16-17 ) RC t>3 P = cost r,i, a P x (N 1st Pvt 14-15 + N Xst Pvt 14-15 + N 1st Pvt Hired 17 ) + cost r,i, 16-17 B x (N 1st Pvt 16-17 + N Xst Pvt 16-17 )*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Values are presented in the table below.

Table: Private Age-03; Step 3; Total Annual Regional Baseline Labor Cost s for Adult Private Applicators Replacing Adolescent Private Applicators und er 18 (16 Family) Years of Age

N 1st Pvt
14-15 N Xst Pvt
14-15 N 1st Pvt
16-17 N Xst Pvt
16 N Xst Pvt 17 N 1st Pvt 17
Hired RC B ($) cost r,i, a B 1,455 1,746 Region Alabama 0.0 0.0 0.0 0.0 0.0 0.0 0 Alaska 0.0 0.0 0.1 0.0 0.0 0.0 175 Arizona 1.1 0.5 0.6 0.9 0.9 0.1 6,693 Arkansas 0.0 0.0 0.0 0.0 0.0 0.0 0 California 1.9 1.1 1.1 1.6 1.7 0.2 12,397 Colorado 1.2 0.6 0.6 1.0 1.0 0.1 7,333 Connecticut 0.0 0.0 0.0 0.0 0.0 0.0 0 Delaware 0.0 0.0 0.0 0.0 0.0 0.0 0 Florida 0.0 0.0 0.0 0.0 0.0 0.0 0 Georgia 0.0 0.0 1.6 0.0 1.0 0.1 4,714 Hawaii 0.0 0.0 0.0 0.0 0.0 0.0 0 Idaho 0.0 0.0 0.0 0.0 0.0 0.0 0 Illinois 0.0 0.0 5.6 0.0 3.5 0.4 16,588 Indiana 0.0 0.0 3.4 0.0 2.2 0.3 10,302 Iowa 4.7 2.6 2.4 4.0 4.1 0.5 29,828 Kansas 2.8 1.5 1.5 2.3 2.3 0.3 17,431 Kentucky 0.0 0.0 4.4 0.0 2.7 0.4 13,096 Louisiana 0.0 0.0 1.6 0.0 1.0 0.1 4,714 Maine 0.0 0.0 0.6 0.0 0.5 0.0 1,921 Maryland 0.0 0.0 0.9 0.0 0.5 0.1 2,619 Massachusetts 0.0 0.0 0.0 0.0 0.0 0.0 0 Michigan 0.0 0.0 0.0 0.0 0.0 0.0 0 Minnesota 3.3 1.8 1.7 2.8 2.8 0.4 20,865 Mississippi 0.0 0.0 0.0 0.0 0.0 0.0 0 Missouri 0.0 0.0 0.0 0.0 0.0 0.0 0 Montana 1.0 0.5 0.5 0.8 0.8 0.1 6,024 Nebraska 0.0 0.0 4.9 0.0 3.1 0.4 14,667 Nevada 0.0 0.0 0.1 0.0 0.1 0.0 349 New Hampshire 0.0 0.0 0.0 0.0 0.0 0.0 0 New Jersey 0.0 0.0 0.0 0.0 0.0 0.0 0 New Mexico 1.7 0.9 1.0 1.4 1.4 0.2 10,767 New York 0.0 0.0 1.9 0.0 0.0 0.5 4,191 North Carolina 0.0 0.0 2.4 0.0 1.5 0.2 7,159 North Dakota 0.0 0.0 0.0 0.0 0.0 0.0 0 Ohio 3.6 2.0 1.8 3.1 3.1 0.4 22,814 Oklahoma 3.4 1.9 1.8 2.9 3.0 0.4 21,854 Oregon 0.0 0.0 0.0 0.0 0.0 0.0 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Pennsylvania 0.0 0.0 4.6 0.0 2.9 0.4 13,794 Rhode Island 0.0 0.0 0.1 0.0 0.1 0.0 349 South Carolina 0.0 0.0 0.0 0.0 0.0 0.0 0 South Dakota 2.0 1.1 1.1 1.7 1.7 0.2 12,717 Tennessee 2.0 1.1 1.1 1.7 1.7 0.2 12,717 Texas 6.3 3.5 3.2 5.3 5.3 0.7 39,576 Utah 0.0 0.0 0.9 0.0 0.5 0.1 2,619 Vermont 0.0 0.0 0.2 0.0 0.2 0.0 698 Virginia 0.0 0.0 1.9 0.0 1.2 0.2 5,762 Washington 0.0 0.0 1.9 0.0 1.3 0.1 5,762 West Virginia 0.4 0.3 0.2 0.4 0.5 0.0 2,939 Wisconsin 0.0 0.0 3.8 0.0 2.3 0.3 11,175 Wyoming 0.0 0.0 0.6 0.0 0.4 0.1 1,921 Puerto Rico 0.1 0.0 0.1 0.1 0.1 0.0 669 Other 1.3 0.6 0.7 1.1 1.1 0.2 8,177 Total 37 20 61 31 57 8 335,375

Table: Private Age-03; Step 3; Total Annual Regional Potent ial Requirement Labor Costs for Adult Private Applicators Replacing Adolescent Private Applicators under 18 (16 Family) years of Age, Years 3 and

over N 1st Pvt
14-15 N 1st Pvt 17
Hired N Xst Pvt
14-15 N Pvt
16-17 RC t=3 P ($) RC t>3 P ($) cost r,i, a B 2,910 2,910 1,455/2,910 1,746 Region Alabama 0.0 0.0 0.0 0.0 0 0 Alaska 0.0 0.0 0.0 0.1 175 175 Arizona 1.1 0.1 0.5 2.4 8,410 9,137 Arkansas 0.0 0.0 0.0 0.0 0 0 California 1.9 0.2 1.1 4.4 15,394 16,994 Colorado 1.2 0.1 0.6 2.6 9,195 10,068 Connecticut 0.0 0.0 0.0 0.0 0 0 Delaware 0.0 0.0 0.0 0.0 0 0 Florida 0.0 0.0 0.0 0.0 0 0 Georgia 0.0 0.1 0.0 2.6 4,831 4,831 Hawaii 0.0 0.0 0.0 0.0 0 0 Idaho 0.0 0.0 0.0 0.0 0 0 Illinois 0.0 0.4 0.0 9.1 17,053 17,053 Indiana 0.0 0.3 0.0 5.6 10,651 10,651 Iowa 4.7 0.5 2.6 10.5 37,247 41,030 Kansas 2.8 0.3 1.5 6.1 21,854 24,036 Kentucky 0.0 0.4 0.0 7.1 13,561 13,561 Louisiana 0.0 0.1 0.0 2.6 4,831 4,831 Maine 0.0 0.0 0.0 1.1 1,921 1,921 Maryland 0.0 0.1 0.0 1.4 2,735 2,735 Massachusetts 0.0 0.0 0.0 0.0 0 0 Michigan 0.0 0.0 0.0 0.0 0 0 Minnesota 3.3 0.4 1.8 7.3 26,131 28,750*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Mississippi 0.0 0.0 0.0 0.0 0 0 Missouri 0.0 0.0 0.0 0.0 0 0 Montana 1.0 0.1 0.5 2.1 7,595 8,322 Nebraska 0.0 0.4 0.0 8.0 15,133 15,133 Nevada 0.0 0.0 0.0 0.2 349 349 New Hampshire 0.0 0.0 0.0 0.0 0 0 New Jersey 0.0 0.0 0.0 0.0 0 0 New Mexico 1.7 0.2 0.9 3.8 13,473 14,782 New York 0.0 0.5 0.0 1.9 4,772 4,772 North Carolina 0.0 0.2 0.0 3.9 7,392 7,392 North Dakota 0.0 0.0 0.0 0.0 0 0 Ohio 3.6 0.4 2.0 8.0 28,517 31,427 Oklahoma 3.4 0.4 1.9 7.7 27,266 30,030 Oregon 0.0 0.0 0.0 0.0 0 0 Pennsylvania 0.0 0.4 0.0 7.5 14,260 14,260 Rhode Island 0.0 0.0 0.0 0.2 349 349 South Carolina 0.0 0.0 0.0 0.0 0 0 South Dakota 2.0 0.2 1.1 4.5 15,859 17,460 Tennessee 2.0 0.2 1.1 4.5 15,859 17,460 Texas 6.3 0.7 3.5 13.8 49,556 54,648 Utah 0.0 0.1 0.0 1.4 2,735 2,735 Vermont 0.0 0.0 0.0 0.4 698 698 Virginia 0.0 0.2 0.0 3.1 5,995 5,995 Washington 0.0 0.1 0.0 3.2 5,878 5,878 West Virginia 0.4 0.0 0.3 1.1 3,521 3,958 Wisconsin 0.0 0.3 0.0 6.1 11,524 11,524 Wyoming 0.0 0.1 0.0 1.0 2,037 2,037 Puerto Rico 0.1 0.0 0.0 0.3 815 815 Other 1.3 0.2 0.6 2.9 10,301 11,174 Total 37 8 20 149 417,875 446,972

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements and one year for previ ously certified adolescen ts to reach the age requirement. The cost of labor would remain c onstant thereafter. The PV of costs under the proposal, at a 3% discount rate, is ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ

ܥܴ ௜,௥ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ 1 ሺ 1 ൅ 0.03 ሻ ଶ ൅ ܴܥ ௥,௜ ௉ ௧வଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ

ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ܥܴ ൅ 0.94 ∙ ௜,௥ ௉ ௧வଷ ∙ 5.87

Step 5 - Estimate the Regional Incremental Cost of the Potential Requirement

 Under this provision, first-time adolescent applicators would have to be replaced by adults the year the rule is implemented, whic h EPA assumes will be in Year 3 of the time horizon to allow states to revise their regulations. Certifica tions of adolescents at that time will not be revoked; they will be replaced by adults in Years 4-6 of the time horizon.

 NPV RC P = Present Value of the Regional Cost of the Potential requirement

 NPV RC B = Present Value of the Baseline Regional Cost

 NPV IC = Present Value of the Regional Incremental Cost

 NPV IC = NPV RC P - NPV RC B
Table: Private Age-03; Steps 4 & 5; Regional Present Values of Potential Re quirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 0 0 0 Alaska 2 2 0 Arizona 75 59 16 Arkansas 0 0 0 California 139 109 30 Colorado 82 64 18 Connecticut 0 0 0 Delaware 0 0 0 Florida 0 0 0 Georgia 42 41 1 Hawaii 0 0 0 Idaho 0 0 0 Illinois 149 146 3 Indiana 93 91 2 Iowa 335 262 73 Kansas 196 153 43 Kentucky 118 115 3*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Louisiana 42 41 1 Maine 17 17 0 Maryland 24 23 1 Massachusetts 0 0 0 Michigan 0 0 0 Minnesota 235 183 51 Mississippi 0 0 0 Missouri 0 0 0 Montana 68 53 15 Nebraska 132 129 3 Nevada 3 3 0 New Hampshire 0 0 0 New Jersey 0 0 0 New Mexico 121 95 26 New York 41 37 4 North Carolina 64 63 2 North Dakota 0 0 0 Ohio 256 200 56 Oklahoma 245 192 53 Oregon 0 0 0 Pennsylvania 124 121 3 Rhode Island 3 3 0 South Carolina 0 0 0 South Dakota 143 112 31 Tennessee 143 112 31 Texas 446 348 98 Utah 24 23 1 Vermont 6 6 0 Virginia 52 51 2 Washington 51 51 1 West Virginia 32 26 7 Wisconsin 101 98 2 Wyoming 18 17 1 Puerto Rico 7 6 1 Other 91 72 20

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of NPV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of NPV RC B (see Steps 4 & 5) for all regions*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 NIC = the sum of NPV IC (see Steps 4 & 5) for all regions

 Per applicable applicator incremental co st = NIC (U.S., annualized value) ÷ (N Pvt Fam 14-15 + N Pvt Hired 14-17 )

 3% discount rate used for PV and annualized value
Table: Private Age-03; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 3,719 3,122 597 U.S. (annualized value) 423 355 68 Per applicable applicator incremental cost 0.457

4.2.2 Non-certified Applicators

Step 1 - Calculate Labor Baseline Costs per Adolescent Non-certified Applicator under the supervision of a Private Applicator

Three states – Iowa, Minnesota, and South Dakota – do not allo w non-certified applicators to apply RUPs under the supervision of private app licators. Three states – Alaska, Nebrask, and Vermont – have a minimum age requirement of 16 for non-certified applicat ors and four states – Alabama, Connecticut, Delaware, and New Jersey – have a minimum age requirement of 18 for non-certified applicators. In ot her states, which currently have no minimum age requirement, under this potential requirement would require commercial applicat ors to replace any adolescents working with RUPs under their supervision with adults. The difference between the cost of paying adult applicator for this tim e and the cost for adolescents is the cost of this requirement.
Baseline Age Eligibility Requirement for Commercial Certification:

 Ten states have a minimum age requiremen t for non-certified applicators applying RUPs under the supervision of a commercial applicat or or do not allow non-certified applicators to apply RUPs Assumptions:

 The numbers of adolescent non-certifie d applicators applying RUPs under the supervision of private applicators are es timated in Chapter 3.3 .4. See Table 3.3-10.

 Adolescent applicators under 16 ar e assumed to receive a wage rate that is 50% of their adult counterparts and the loaded wage rate is calculated to be $10.75 per hour; for those 16-17 years old, the wage rate is assumed to be 60% of the adult wage or $12.89 per hour. See Chapter 3.3.5.

 Pesticide applicators under 18 work, on aver age, 56 hours per year applying RUPs as with certified adoles cent applicators*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Baseline Cost per Non-certified Pesticide App licator Under Age 18 Applying RUPs under the Supervision of a Private Applicator

Action Wage ($/hour) Time (hours) Frequency (per commercial <18, per year) Cost ($) RUP applications by 14- 15 year old certified private applicator 10.75 56 1 601.72

RUP applications by 16- 17 year old certified private applicator 12.89 56 1 722.06

4.2.2.1 Private Age-04: Minimum Age of 16

Step 2 - Calculate Costs of Potential Requirement per Current Non-certified Applicator Under Age 16 under the supervision of a Private Applicator
Age Eligibility Requirement:

 Non-certified pesticide applicators must be 16 or older to apply RUPs , starting in year 3 under a final rule. Assumptions/Data:

 Labor time adolescents under 16 spend to a pply RUPs would be replaced by labor time using pesticide applicators that are 18 or older (adults).

 The amount of time that adult commercial ap plicators would work in place of the adolescent pesticide applicators would be th e same applicable time that the adolescents had previously worked applying RUPs (56 hours per year).

 The wage rate for adult commercial a pplicators is $21.49 per hour (BLS, 2013a and 2013b)

Table: Private Age-04; Step 2 Cost of Potential Requirement per Non-cert ified Applicator under Age 16 Applying RUPs

Action Wage ($/hour) Time (hours) Frequency (per commercial <18, per year) Cost ($) Labor 12.89 56 1 722

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline labor cost ( cost r,i, a B ) is presented in Step 1.

 The labor cost under the potential requirement ( cost r,i, a P ) is shown in Step 2.

 EPA estimates the number of pesticide a pplicators under 18 base d on the proportion of farms with second and third operators unde r 25 in each state (NASS, 2014c). See Chapter 3.3.3.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The baseline regional cost (RC B ) is the total annual regional co st of wages currently paid for private applicators under age 18 for hours spent working with RUPs.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for adult private applicators for hours worked re placing a private app licator under 18 that these adolescents currently spend working with RUPs.

 EPA assumes the rule is implemented in Year 3, after states have revised regulations in keeping with the proposal. Given the above: RC B = cost r,i, a B x (N Pvt UTS 14-15 ) RC P = cost r,i, a P x (N Pvt UTS 14-15 )
Values are presented in the table below.

Table: Private Age-04; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Adult Non-certified Applicators to Replace Non-certifie d Applicators under 16 Years of Age N Pvt UTS 14-15 N Pvt UTS Hired

16-17 N Pvt UTS Family
16-17

RC B ($) RC P ($) cost r,i, a B 602 722 722
cost r,i, a P 722 722 722 Region Alabama 0.0 0.0 0.0 0 0 Alaska 0.0 0.2 0.2 289 289

Arizona 7.4 10.2 0.8 12,395 13,282

Arkansas 29.2 15.8 85.7 90,845 94,344

California 32.0 18.2 91.0 98,089 101,924

Colorado 11.4 10.3 19.6 28,446 29,812

Connecticut 0.0 0.0 0.0 0 0

Delaware 0.0 0.0 0.0 0 0

Florida 12.1 14.1 10.0 24,681 26,131 Georgia 24.4 11.6 76.8 78,499 81,424

Hawaii 0.8 1.1 0.7 1,781 1,877

Idaho 9.5 8.9 15.2 23,115 24,254

Illinois 31.6 16.3 95.1 99,436 103,223

Indiana 29.0 23.3 59.0 76,865 80,341

Iowa 0.0 0.0 0.0 0 0

Kansas 23.8 14.5 64.0 70,992 73,844 Kentucky 21.4 24.0 20.6 45,077 47,641*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Louisiana 9.9 7.0 23.3 27,832 29,018

Maine 2.1 2.4 2.4 4,729 4,981 Maryland 6.8 5.4 14.3 18,314 19,129

Massachusetts 2.8 3.4 2.4 5,872 6,208 Michigan 18.5 18.0 27.5 43,981 46,198

Minnesota 0.0 0.0 0.0 0 0 Mississippi 13.4 9.3 32.9 38,528 40,134

Missouri 32.7 30.9 50.9 78,732 82,651

Montana 10.6 6.7 28.2 31,573 32,844

Nebraska 0.0 12.6 146.0 114,484 114,484

Nevada 1.2 1.4 1.1 2,527 2,671

New Hampshire 1.6 2.3 0.7 3,129 3,320
New Jersey 0.0 0.0 0.0 0 0

New Mexico 6.5 7.8 4.8 13,008 13,787

New York 16.7 15.6 26.4 40,371 42,372

North Carolina 24.5 13.8 70.0 75,239 78,175

North Dakota 21.3 7.3 76.8 73,529 76,082

Ohio 35.8 33.3 57.5 87,095 91,385

Oklahoma 23.2 24.7 27.3 51,502 54,282
Oregon 10.7 11.4 12.7 23,838 25,120 Pennsylvania 37.8 33.8 65.6 94,506 99,036

Rhode Island 0.6 0.7 0.3 1,083 1,155

South Carolina 8.1 7.0 14.9 20,684 21,655

South Dakota 0.0 0.0 0.0 0 0

Tennessee 18.8 21.7 16.4 38,820 41,073

Texas 57.4 58.9 73.1 129,838 136,716

Utah 5.5 6.8 3.4 10,674 11,333

Vermont 0.0 2.3 1.7 2,887 2,887 Virginia 13.2 14.7 12.7 27,725 29,307 Washington 18.0 10.1 51.9 55,590 57,747*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

West Virginia 5.3 7.1 1.3 9,254 9,889

Wisconsin 31.0 26.6 57.9 79,657 83,373 Wyoming 5.9 3.0 18.3 18,927 19,634

Puerto Rico 14.3 1.4 63.2 55,239 56,953 Other 6.2 8.6 0.9 10,590 11,333 Total 693 585 1,526 1,940,268 2,023,318

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of labor would remain constant thereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Age-04; Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Region PV RC P PV RC B PV IC ($1,000) ($1,000) ($1,000) Alabama 0 0 0 Alaska 3 3 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Arizona 117 109 8 Arkansas 829 798 31 California 896 862 34 Colorado 262 250 12 Connecticut 0 0 0 Delaware 0 0 0 Florida 230 217 13 Georgia 715 690 26 Hawaii 16 16 1 Idaho 213 203 10 Illinois 907 874 33 Indiana 706 675 31 Iowa 0 0 0 Kansas 649 624 25 Kentucky 419 396 23 Louisiana 255 245 10 Maine 44 42 2 Maryland 168 161 7 Massachusetts 55 52 3 Michigan 406 386 19 Minnesota 0 0 0 Mississippi 353 339 14 Missouri 726 692 34 Montana 289 277 11 Nebraska 1,006 1,006 0 Nevada 23 22 1 New Hampshire 29 27 2 New Jersey 0 0 0 New Mexico 121 114 7 New York 372 355 18 North Carolina 687 661 26 North Dakota 668 646 22 Ohio 803 765 38 Oklahoma 477 453 24 Oregon 221 209 11 Pennsylvania 870 830 40 Rhode Island 10 10 1 South Carolina 190 182 9 South Dakota 0 0 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Tennessee 361 341 20 Texas 1,201 1,141 60 Utah 100 94 6 Vermont 25 25 0 Virginia 257 244 14 Washington 507 488 19 West Virginia 87 81 6 Wisconsin 733 700 33 Wyoming 173 166 6 Puerto Rico 500 485 15 Other 100 93 7

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of NPV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of NPV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of NPV IC (see Steps 4 & 5) for all regions

 Per applicable applicator incremental co st = NIC (U.S., annualized value) ÷ (N Pvt UTS 14-
15 )

 3% discount rate used for PV and annualized value
Table: Private Age-04; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 17,777 17,047 730 U.S. (annualized value) 2,023 1,940 83 Per applicable applicator incremental cost 0.030

4.2.2.2 Private Age-05: Minimum Age of 18

Step 2 - Calculate Costs of Potential Requirement per Current Non-certified Applicator Under Age 18 under the supervision of a Private Applicator
Age Eligibility Requirement:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Non-certified pesticide applicators must be 18 or older to apply RUPs , starting in year 3 under a final rule. Assumptions/Data:

 Labor time adolescents under 18 spend to a pply RUPs would be replaced by labor time using pesticide applicators that are 18 or older (adults).

 The amount of time that adult commercial ap plicators would work in place of the adolescent pesticide applicators would be th e same applicable time that the adolescents had previously worked applying RUPs (56 hours per year).

 The wage rate for adult commercial a pplicators is $21.49 per hour (BLS, 2013a and 2013b)

Table: Private Age-05; Step 2 Cost of Potential Requirement per Non-cert ified Applicator under Age 18 Applying RUPs

Action Wage ($/hour) Time (hours) Frequency (per commercial <18, per year) Cost ($) Labor 21.49 56 1 1,203.44

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline labor cost ( cost r,i, a B ) is presented in Step 1.

 The labor cost under the potential requirement ( cost r,i, a P ) is shown in Step 2.

 EPA estimates the number of pesticide a pplicators under 18 base d on the proportion of farms with second and third operators unde r 25 in each state (NASS, 2014c). See Chapter 3.3.3.

 The baseline regional cost (RC B ) is the total annual regional co st of wages currently paid for private applicators under age 18 for hours spent working with RUPs.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for adult private applicators for hours worked re placing a private app licator under 18 that these adolescents currently spend working with RUPs.

 EPA assumes the rule is implemented in Year 3, after states have revised regulations in keeping with the proposal. Given the above: RC B = cost r,i, a B x (N Pvt UTS 14-15 ) RC P = cost r,i, a P x (N Pvt UTS 14-15 )
Values are presented in the table below.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Age-05; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Adult Non-certified Applicators to Replace Non-certifie d Applicators under 18 Years of Age N Pvt UTS 14-

15 N Pvt UTS Hired

16-17 N Pvt UTS Family
16-17

RC B ($) RC P ($) cost r,i, a B 602 722 722
cost r,i, a P 1,203 1,203 1,203 Region Alabama 0.0 0.0 0.0 0 0 Alaska 0.0 0.2 0.2 289 481 Arizona 7.4 10.2 0.8 12,395 22,143 Arkansas 29.2 15.8 85.7 90,845 157,290 California 32.0 18.2 91.0 98,089 169,926 Colorado 11.4 10.3 19.6 28,446 49,702 Connecticut 0.0 0.0 0.0 0 0 Delaware 0.0 0.0 0.0 0 0 Florida 12.1 14.1 10.0 24,681 43,565 Georgia 24.4 11.6 76.8 78,499 135,748 Hawaii 0.8 1.1 0.7 1,781 3,129 Idaho 9.5 8.9 15.2 23,115 40,436 Illinois 31.6 16.3 95.1 99,436 172,092 Indiana 29.0 23.3 59.0 76,865 133,943 Iowa 0.0 0.0 0.0 0 0 Kansas 23.8 14.5 64.0 70,992 123,112 Kentucky 21.4 24.0 20.6 45,077 79,427 Louisiana 9.9 7.0 23.3 27,832 48,378 Maine 2.1 2.4 2.4 4,729 8,304 Maryland 6.8 5.4 14.3 18,314 31,891 Massachusetts 2.8 3.4 2.4 5,872 10,350 Michigan 18.5 18.0 27.5 43,981 77,020 Minnesota 0.0 0.0 0.0 0 0 Mississippi 13.4 9.3 32.9 38,528 66,911 Missouri 32.7 30.9 50.9 78,732 137,794 Montana 10.6 6.7 28.2 31,573 54,757*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Nebraska 0.0 12.6 146.0 114,484 190,866 Nevada 1.2 1.4 1.1 2,527 4,453 New Hampshire 1.6 2.3 0.7 3,129 5,536 New Jersey 0.0 0.0 0.0 0 0 New Mexico 6.5 7.8 4.8 13,008 22,986 New York 16.7 15.6 26.4 40,371 70,642 North Carolina 24.5 13.8 70.0 75,239 130,333 North Dakota 21.3 7.3 76.8 73,529 126,843 Ohio 35.8 33.3 57.5 87,095 152,356 Oklahoma 23.2 24.7 27.3 51,502 90,499 Oregon 10.7 11.4 12.7 23,838 41,880 Pennsylvania 37.8 33.8 65.6 94,506 165,112 Rhode Island 0.6 0.7 0.3 1,083 1,926 South Carolina 8.1 7.0 14.9 20,684 36,103 South Dakota 0.0 0.0 0.0 0 0 Tennessee 18.8 21.7 16.4 38,820 68,476 Texas 57.4 58.9 73.1 129,838 227,932 Utah 5.5 6.8 3.4 10,674 18,894 Vermont 0.0 2.3 1.7 2,887 4,814 Virginia 13.2 14.7 12.7 27,725 48,860 Washington 18.0 10.1 51.9 55,590 96,275 West Virginia 5.3 7.1 1.3 9,254 16,487 Wisconsin 31.0 26.6 57.9 79,657 138,997 Wyoming 5.9 3.0 18.3 18,927 32,734 Puerto Rico 14.3 1.4 63.2 55,239 94,951

Other 6.2 8.6 0.9 10,590 18,894 Total 693 585 1,526 1,940,268 3,373,242

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of labor would remain constant thereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Age-05; Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Region PV RC P ($1000) PV RC B ($1000) PV IC ($1000) Alabama 0 0 0 Alaska 4 3 1 Arizona 175 109 66 Arkansas 1,251 798 453 California 1,351 862 490 Colorado 395 250 145 Connecticut 0 0 0 Delaware 0 0 0 Florida 346 217 129 Georgia 1,080 690 390 Hawaii 25 16 9 Idaho 321 203 118 Illinois 1,369 874 495 Indiana 1,064 675 389 Iowa 0 0 0 Kansas 979 624 355 Kentucky 630 396 234*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Louisiana 385 245 140 Maine 66 42 24 Maryland 253 161 93 Massachusetts 82 52 31 Michigan 612 386 225 Minnesota 0 0 0 Mississippi 532 339 193 Missouri 1,094 692 403 Montana 435 277 158 Nebraska 1,526 1,006 521 Nevada 35 22 13 New Hampshire 44 27 16 New Jersey 0 0 0 New Mexico 182 114 68 New York 561 355 206 North Carolina 1,037 661 375 North Dakota 1,009 646 363 Ohio 1,210 765 445 Oklahoma 718 453 266 Oregon 332 209 123 Pennsylvania 1,312 830 481 Rhode Island 15 10 6 South Carolina 287 182 105 South Dakota 0 0 0 Tennessee 543 341 202 Texas 1,809 1,141 669 Utah 150 94 56 Vermont 38 25 13 Virginia 388 244 144 Washington 766 488 277 West Virginia 131 81 49 Wisconsin 1,104 700 404 Wyoming 260 166 94 Puerto Rico 756 485 271 Other 150 93 57

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of NPV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of NPV RC B (see Steps 4 & 5) for all regions*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 NIC = the sum of NPV IC (see Steps 4 & 5) for all regions

 Per applicable applicator incremental co st = NIC (U.S., annualized value) ÷ (N Pvt UTS 14-
17 )

 3% discount rate used for PV and annualized value
Table: Private Age-05; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 26,813 17,047 9,766 U.S. (annualized value) 3,052 1,940 1,112 Per applicable applicator incremental cost 0.397

4.2.2.3 Private Age-06: Minimum Age of 18; Mi nimum Age of 16 for Family Members

Step 2 - Calculate Costs of Potential Requirement per Current Non-certified Applicator Under Age 18 under the supervision of a Private Applicator
Age Eligibility Requirement:

 Non-certified pesticide applicators must be 18 (16 if family member of farm operator) or older to apply RUPs, starting in year 3 under a final rule. Assumptions/Data:

 Labor time adolescents under 18 (16) spend to apply RUPs would be replaced by labor time using pesticide applicators that are 18 or older (adults).

 The amount of time that adult commercial ap plicators would work in place of the adolescent pesticide applicators would be th e same applicable time that the adolescents had previously worked applying RUPs (56 hours per year).

 The wage rate for adult commercial a pplicators is $21.49 per hour (BLS, 2013a and 2013b)

Table: Private Age-06; Step 2 Cost of Potential Requirement per Non-certif ied Applicator under Age 18 (16 if Family Member) Applying RUPs

Action Wage ($/hour) Time (hours) Frequency (per commercial <18, per year) Cost ($) Labor 21.49 56 1 1,203.44

Step 3 – Estimate Regional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline labor cost ( cost r,i, a B ) is presented in Step 1.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The labor cost under the potential requirement ( cost r,i, a P ) is shown in Step 2.

 EPA estimates the number of pesticide a pplicators under 18 base d on the proportion of farms with second and third operators unde r 25 in each state (NASS, 2014c). See Chapter 3.3.3.

 The baseline regional cost (RC B ) is the total annual regional co st of wages currently paid for private applicators under age 18 for hours spent working with RUPs.

 The regional cost of the potential requirement (RC P ) is the total annual regional cost for adult private applicators for hours worked re placing a private app licator under 18 that these adolescents currently spend working with RUPs.

 EPA assumes the rule is implemented in Year 3, after states have revised regulations in keeping with the proposal.

Given the above: RC B = cost r,i, a B x (N Pvt UTS 14-15 ) RC P = cost r,i, a P x (N Pvt UTS 14-15 )
Values are presented in the table below.

Table: Private Age-06; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Adult Non-certified Applicators to Replace Non-certified A pplicators under 18 (16) Years of Age N Pvt UTS 14-15 N Pvt UTS Hired

16-17 N Pvt UTS Family
16-17

RC B ($) RC P ($) cost r,i, a B 602 722 722
cost r,i, a P 1,203 1,203 722 Region Alabama 0.0 0.0 0.0 0 0 Alaska 0.0 0.2 0.2 289 385

Arizona 7.4 10.2 0.8 12,395 13,667

Arkansas 29.2 15.8 85.7 90,845 135,618

California 32.0 18.2 91.0 98,089 145,749

Colorado 11.4 10.3 19.6 28,446 39,251

Connecticut 0.0 0.0 0.0 0 0

Delaware 0.0 0.0 0.0 0 0

Florida 12.1 14.1 10.0 24,681 30,947 Georgia 24.4 11.6 76.8 78,499 118,410

Hawaii 0.8 1.1 0.7 1,781 2,214

Idaho 9.5 8.9 15.2 23,115 31,574

Illinois 31.6 16.3 95.1 99,436 149,023*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Indiana 29.0 23.3 59.0 76,865 108,755

Iowa 0.0 0.0 0.0 0 0

Kansas 23.8 14.5 64.0 70,992 104,667 Kentucky 21.4 24.0 20.6 45,077 57,562

Louisiana 9.9 7.0 23.3 27,832 40,239

Maine 2.1 2.4 2.4 4,729 6,137 Maryland 6.8 5.4 14.3 18,314 26,016

Massachusetts 2.8 3.4 2.4 5,872 7,364 Michigan 18.5 18.0 27.5 43,981 59,442

Minnesota 0.0 0.0 0.0 0 0 Mississippi 13.4 9.3 32.9 38,528 55,979

Missouri 32.7 30.9 50.9 78,732 107,164

Montana 10.6 6.7 28.2 31,573 46,425

Nebraska 0.0 12.6 146.0 114,484 184,797

Nevada 1.2 1.4 1.1 2,527 3,201

New Hampshire 1.6 2.3 0.7 3,129 3,658
New Jersey 0.0 0.0 0.0 0 0

New Mexico 6.5 7.8 4.8 13,008 16,099

New York 16.7 15.6 26.4 40,371 55,086

North Carolina 24.5 13.8 70.0 75,239 111,887

North Dakota 21.3 7.3 76.8 73,529 113,069

Ohio 35.8 33.3 57.5 87,095 119,077

Oklahoma 23.2 24.7 27.3 51,502 67,430
Oregon 10.7 11.4 12.7 23,838 31,236 Pennsylvania 37.8 33.8 65.6 94,506 130,629

Rhode Island 0.6 0.7 0.3 1,083 1,299

South Carolina 8.1 7.0 14.9 20,684 28,831

South Dakota 0.0 0.0 0.0 0 0

Tennessee 18.8 21.7 16.4 38,820 48,971

Texas 57.4 58.9 73.1 129,838 171,921*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Utah 5.5 6.8 3.4 10,674 12,970

Vermont 0.0 2.3 1.7 2,887 3,706 Virginia 13.2 14.7 12.7 27,725 35,423 Washington 18.0 10.1 51.9 55,590 82,742 West Virginia 5.3 7.1 1.3 9,254 10,515

Wisconsin 31.0 26.6 57.9 79,657 111,257 Wyoming 5.9 3.0 18.3 18,927 28,447

Puerto Rico 14.3 1.4 63.2 55,239 87,390 Other 6.2 8.6 0.9 10,590 11,766 Total 693 585 1,526 1,940,268 2,757,998

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of labor would remain constant thereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Age-06; Applicators; Steps 4 & 5 Jurisdictional Present Values of Potentia l Requirement, Baseline, and Incremental Costs

Region PV RC P PV RC B PV IC ($1,000) ($1,000) ($1,000) Alabama 0 0 0 Alaska 3 3 1 Arizona 118 109 9 Arkansas 1,103 798 305 California 1,187 862 325 Colorado 324 250 74 Connecticut 0 0 0 Delaware 0 0 0 Florida 260 217 43 Georgia 962 690 272 Hawaii 19 16 3 Idaho 261 203 58 Illinois 1,212 874 338 Indiana 893 675 217 Iowa 0 0 0 Kansas 853 624 230 Kentucky 481 396 85 Louisiana 329 245 85 Maine 51 42 10 Maryland 213 161 52 Massachusetts 62 52 10 Michigan 492 386 105 Minnesota 0 0 0 Mississippi 457 339 119 Missouri 886 692 194 Montana 379 277 101 Nebraska 1,485 1,006 479 Nevada 27 22 5 New Hampshire 31 27 4 New Jersey 0 0 0 New Mexico 135 114 21 New York 455 355 100 North Carolina 911 661 250 North Dakota 916 646 269 Ohio 983 765 218*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Oklahoma 561 453 109 Oregon 260 209 50 Pennsylvania 1,077 830 246 Rhode Island 11 10 1 South Carolina 237 182 56 South Dakota 0 0 0 Tennessee 410 341 69 Texas 1,428 1,141 287 Utah 109 94 16 Vermont 31 25 6 Virginia 296 244 52 Washington 673 488 185 West Virginia 90 81 9 Wisconsin 915 700 215 Wyoming 231 166 65 Puerto Rico 704 485 219 Other 101 93 8

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of NPV RC P (see Steps 4 & 5) for all regions

 NC B = the sum of NPV RC B (see Steps 4 & 5) for all regions

 NIC = the sum of NPV IC (see Steps 4 & 5) for all regions

 Per applicable applicator incremental co st = NIC (U.S., annualized value) ÷ (N Pvt Fam UTS
14-15 + N Pvt Hired UTS 14-17 )

 3% discount rate used for PV and annualized value
Table: Private Age-06; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 22,620 17,047 5,573 U.S. (annualized value) 2,575 1,940 634 Per applicable applicator incremental cost 0.226*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***



## 5 Standards for Recertification

The options analyzed here address the requirement s for recertification of commercial and private applicators.



### 5.1 Commercial Applicators

5.1.1 Core and Existing Categories

Step 1 - Calculate Baseline Costs per Existing Commercial Applicator

Note that the baseline cost estimate is identical for all options pertaining to the recertification of the commercial core and existing categories Comm Recert-01, 02, -04, and -05.

State Baseline Requirements:

Every jurisdiction’s commercial applicator recerti fication requirements differ in some way from all others. Therefore, each state has a sepa rate entry below with the summary of their recertification requirements, as we ll as the assumptions for, and calculation of, the cost estimate.

The cost estimate for each state is the expected annual cost per commercial applicator in the state, for recertification. Th e estimate is calculated as

ݐݏ݋ܿ ைெ஼,௜,௥ ஻ ൌ ݓ COM ∙ ܪ ௥,௜,஼ைெ ஻ ∙ ൫݂ݎ݁ݍ ௜,௧ ∙ ܿ݁ݐݎ ప ത ത ത ത ത ത ത ൯

where cost r,i,COM B is the baseline cost ( B ) per commercial applicator ( COM ) for the recertification requirement ( r ) in jurisdiction ( i ), w COM is the hourly wage rate (opportunity cost) for a commercial applicator; H r,i,COM B is the time, in hours, require d to meet the recertification requirement; freq i,t is the reciprocal of the recertificati on time period and represents either the fraction of commercial applicator s obtaining recertification (if, for example, by examination) or the fraction of Cumulative Educa tion Units (CEUs) an applicator obtains each year to meet the total number required; and ܿ݁ݐݎ ప ത ത ത ത ത ത തis the average number of category certification held by commercial applicators in jurisdiction i . Most states require commerc ial applicators to recertify by category, so applicators with multiple certific ations must meet multiple requirements. Note that, in the baseline, states may have diffe ring requirements for different categories.

 The national average wage rate for commercial applicators is used for all states (BLS, 2013a and 2013b). See Chapter 3.3.5

 Frequency: Most states have a recertification period longer than one year, and the time requirement applies to the enti re period. States either requi re a certain number of CEUs, or a one-time requirement (training session or ex am), per recertificati on period. In states requiring CEUs, all commercial applicators in cur a portion of the time requirement each*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

year; in states requiring a one -time action, a portion of the private applicators incur the entire time requirement each year:

 Average number of category certifications pe r commercial applicator : Only a portion of commercial applicators are certified in, and thus require recertif ication in, any given category offered. The factor that would a pply the time/cost of the category-specific recertification action to the applicable applicators, is the average number of category certifications per commercial applicator in th e state (or, ratio of the number of category certifications to total commercial applicators in the state). Where the same recertification requirements apply to multiple categories (appear in a single table row for cost calculation), the applicable ratio is the cu mulative number of certifications in those categories, divided by the total num ber of commercial applicators.

 The data on the number of commercial a pplicators and the number of category certifications, by state, is the average of 2008-2013 data (CPARD, 2014). EPA has established 11 federal categories, which are us ed in this estimation. Some states do not certify in all categories, if there is no need for a particular area ( e.g. , seed treatments). Some states have divided a fede ral category into multiple areas ( e.g. , industrial/ institutional/structural category) . The data was used to calculate the average number of applicable category certifications per comme rcial applicator in each state includes multiple certifications within a single federal category.

Private applicator core recertifi cation requirements are shown below, by state. States are divided into three groups, by type of requirement:

 training by CEUs, or, passing an exam (34 states)

 single-session training, or, pa ssing an exam (12 states, a lthough one, Tennessee, does not offer exam option)

 must pass an exam (4 states)

Within each group, states vary in the length of tr aining required (length or number of CEUs, or length of single training sessions), and/or the recertification period. There is one table below for each of the three groups of states, with each state’s specific requirements presented.

Alabama Recertification Requirements:

 30 CEUs of 50 minutes, or 25 hours, for each cat egory of certification held (option to retake initial exams for core and each category of certification)

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 3 years, so frequency is 1/3 ( freq i,t = 0.333)

 Average number of category cer tifications per commercial ap plicator in state: 1.113*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Annual Baseline Cost per Commercial Applic ator for Recertification – Alabama

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 25 0.333 1.113 199.32

Alaska Recertification Requirements:

 12 CEUs of 60 minutes, or 12 hours, for each cat egory of certification held (option to retake initial exams for core and each category of certification)

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 3 years ( freq i,t = 0.333)

 Average number of category certifications per commercial applicator in state: 1.357

Annual Baseline Cost per Commercial App licator for Recertification – Alaska

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 12 0.333 1.357 116.65

Arizona Recertification Requirements:

 6 CEUs of 50 minutes, or 5 hours, for each cate gory of certification held (option to retake initial exams for core and each category of certification)

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 1 year ( freq i,t = 1.0)

 Average number of category certifications per commercial applicator in state: 2.287

Annual Baseline Cost per Commercial App licator for Recertification – Arizona

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 5 1.0 2.287 246.74

Arkansas Recertification Requirements:

 Single training session of 240 minutes, or 4 hour s, for each category of certification held (option to retake initial exams for co re and each category of certification)

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 3 years ( freq i,t = 0.333)

 Average number of category certifications per commercial applicator in state: 1.385*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Annual Baseline Cost per Commercial Applic ator for Recertification – Arkansas

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 4 0.333 1.385 39.68

California

Recertification requirements:

 No core-specific requirements to recertify for most categories; exceptions noted below

 Requirement varies depending on category of certification; must complete requirements for each category cer tification held:

o Ag Plant, Ag Animal, Forest, Ornament al/Turf, Aquatic, Right-of-Way, Public Health, Regulatory, Demonstration/Research:

 20 CEUs of 60 minutes, or 20 hours, per category of certification to recertify (option to retake initial exams for core and specific category)

 Public Health category requires 12 co re-specific CEUs and 8 categoryspecific CEUs, for a total of 20, but cost calculati on is the same

 Period is 2 years ( freq i,t = 0.50)

o Seed Treatment:

 4 CEUs of 60 minutes, or 4 hours, to recertify (option to retake initial exams for core and seed treatment category)

 Period is 2 years ( freq i,t = 0.50)

o Industrial/Institutional:

 24 CEUs of 60 minutes, or 24 hours, to recertify (option to retake initial exams for core and industrial/institutional category)

 Period is 3 years ( freq i,t = 0.333)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Average number of category certifications per commercial applicator in state:

o Ag Plant, etc : 0.942

o Seed Treatment: 0.029

o Industrial/ Institutional: 0.558

Annual Baseline Cost per Commercial Applic ator for Recertifica tion – California

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– Ag Plant, etc 21.49 20 0.5 0.942 202.43 Recert

– Seed Treatment 21.49 4 0.5 0.029 1.24

Recert

– Industrial/Institutional 21.49 24 0.333 0.558 95.93

Total 299.61

Colorado*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Recertification Requirements:

 7 core-specific CEUs of 30 minutes, or 3.5 hours, (opti on to retake core exam)

 1 category-specific CEU of 30 minutes per cate gory of certification (option to retake category exam(s))

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

 Each applicator recertifies in the core requirements ( freq i,t =1); Average number of category certifications per commerci al applicator in state: 2.682

Annual Baseline Cost per Commercial Applicator for Recertification – Colorado

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Core Recert 21.49 3.5 0.333 1.0 25.07 Category Recert 21.49 0.5 0.333 2.682 9.61 Total 34.68

Connecticut Recertification Requirements:

 12 CEUs of 60 minutes, or 12 hours, for each category of certificati on held (option to retake initial exams for core and each cat egory of certification; EPA assumes the two options are equivalent in terms of effort)

 Period is 5 years ( freq i,t = 0.20)

 Average number of category certifications per commercial applicator in state: 1.547

Annual Baseline Cost per Commercial Applicat or for Recertification – Connecticut

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 12 0.2 1.547 79.79

Delaware

Recertification requirements:

 Requirement varies depending on category of certification; must complete requirements for each category cer tification held:

o Ag Plant, Ornamental/Turf, Demonstration/Research:

 8 CEUs of 50 minutes, or 6.7 hours, per category of certification to recertify (option to retake initial exams for specific categories)

o Ag Animal, Forest, Aquatic, Right-of-W ay, Public Health, Regulatory:

 4 CEUs of 50 minutes, or 3.3 hours, per category of certification to recertify (option to retake initial exams for specific categories)

o Seed Treatment:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 2 CEUs of 50 minutes, or 1.7 hours, to recertify (option to retake initial exam for seed treatment category)

o Industrial/Institutional:

 18 CEUs of 50 minutes, or 15 hours, to recertify (option to retake initial exam for industrial/in stitutional category)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 1 year for all categories ( freq i,t = 1.0)

 Average number of category certifications per commercial applicator in state:

o Ag Plant, etc : 0.632

o Ag Animal, etc: 0.279

o Seed Treatment: 0.011

o Industrial/Institutional: 0.682

Annual Baseline Cost per Commercial Applicator for Recertification – Delaware

Action Wage ($) Time (hours) frequency (per year) Avg # cat. certs per applicator Cost ($)
Recert ‐ Ag Plant, etc 21.49 6.7 1 0.632 90.54 Recert ‐ Ag Animal, etc 21.49 3.3 1 0.279 19.99 Recert ‐ Seed Treatment 21.49 1.7 1 0.011 0.39

Recert ‐ Industrial/Institutional 21.49 15 1 0.682 219.84

Total 330.77

Florida Recertification requirements:

 Requirement varies depending on category of certification; must complete requirements for each category cer tification held:

o Ag Plant, Ag Animal, Seed Treatment:

 8 CEUs (4 core & 4 cat) of 50 minutes, or 6.7 hours, per category of certification to recertify for core and the specific category (option to retake initial exams for core and specific categories)

o Forest, Right-of-Way:

 12 CEUs (4 Core & 8 Cat) of 50 minutes, or 10 hours, per category of certification to recertify for core and the specific category (option to retake initial exams for core and specific categories)

o Ornamental/Turf, Public Health, Regulatory:

 16 CEUs (4 Core & 12 Cat for Orna mental/Turf and Regulatory; 16 cat for Public Health) of 50 minutes , or 13.3 hours, per category of certification to recertify for core and the specific category (option to retake initial exams for core and specific categories)

o Aquatic:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 20 CEUs (4 core, 16 cat) of 50 minutes , or 16.7 hours, (option to retake initial exams for core and category)

o Demonstration/Research:

 4 CEUs (no core, 4 cat) of 50 minut es, or 3.3 hours, (option to retake initial category exam)

o Industrial/Institutional:

 4 CEUs (2 core & 2 cat) of 50 minut es, or 3.3 hours, (option to retake initial exams for core and category)

 Core requirements could be spread across multip le categories. Given the low number of certifications per applicator in each ca tegory (with the excep tion of Industrial/ Institutional), EPA assumes each applicator takes the total number of CEUs in every category

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 4 years for all categories ( freq i,t = 0.25), except Industrial /Institutional is 1 year ( freq i,t = 1.0)

 Average number of category certifications per commercial applicator in state:

o Ag Plant, etc : 0.087

o Forest, etc : 0.170

o Ornamental, etc : 0.886

o Aquatic: 0.143

o Demo/Research: 0.017

o Industrial/Institutional: 1.301

Annual Baseline Cost per Commercial Applic ator for Recertifica tion – Florida

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert ‐ Ag Plant/Animal, Seed 21.49 6.7 0.25 0.087 3.13

Recert ‐ Forest, Right

‐ of

‐ Way 21.49 10 0.25 0.170 9.16

Recert ‐ Ornamental, Public Health Regulatory 21.49 13.3 0.25 0.886 63.28

Recert

– Aquatic 21.49 16.7 0.25 0.143 12.79 Recert

– Demo/Research 21.49 3.3 0.25 0.017 0.31

Recert

– Industrial/Institutional 21.49 3.3 1.0 1.301 92.26

Total 180.93

Georgia

Recertification requirements:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Requirement varies depending on category of certification; must complete requirements for each category cer tification held:

o Ag Plant, Ornamental/Turf, Public Health:

 10 CEUs of 60 minutes, or 10 hours, per category of certification to recertify for core and the specific cate gory (option to retake initial exams for specific categories)

o Ag Animal, Forest, Seed Treatment, Aquatic, Right-of-Way, Industrial/Institutional, Regulatory:

 6 CEUs of 60 minutes, or 6 hours, per category of certification to recertify for core and the specific category (o ption to retake initial exams for specific categories)

o NOTE: Demonstration/Research category not offered separately; applicators must get certification in whatever cate gory they want to do demonstration and research in

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years for all categories ( freq i,t = 0.20)

 Average number of category certifications per commercial applicator in state:

o Ag Plant, etc : 0.756

o Ag Animal, etc : 0.567

Annual Baseline Cost per Commercial Applic ator for Recertifica tion – Georgia

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– Ag Plant, etc 21.49 10 0.20 0.756 32.50 Recert

– Ag Animal, etc 21.49 6 0.20 0.567 14.61 Total 47.11

Hawaii Recertification requirements:

 Requirement varies depending on category of certification; must complete requirements for each category cer tification held:

o Ag Plant, Aquatic:

 25 CEUs of 60 minutes, or 25 hours, per category of certification to recertify for core and the specific cate gory (option to retake initial exams for specific categories)

o Ag Animal, Regulatory:

 20 CEUs of 60 minutes, or 20 hours, per category of certification to recertify for core and the specific cate gory (option to retake initial exams for specific categories)

o Forest, Ornamental/Turf, Right-o f-Way, Industrial/Institutional, Demonstration/Research:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 30 CEUs of 60 minutes, or 30 hours, per category of certification to recertify for core and the specific cate gory (option to retake initial exams for specific categories)

o Public Health:

 24 CEUs of 60 minutes, or 24 hours, to recertify for core and the specific category (option to retake initial exams for specific categories)

o Seed Treatment category is not offered.

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years for all categories ( freq i,t = 0.20)

 Average number of category certifications per commercial applicator in state:

o Ag Plant, etc : 0.030

o Ag Animal, etc : 0.007

o Forest, etc : 1.236

o Public Health: 0.023

Annual Baseline Cost per Commercial App licator for Recertification – Hawaii

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– Ag Plant, etc 21.49 25 0.20 0.030 3.22 Recert

– Ag Animal,
etc 21.49 20 0.20 0.007 0.60

Recert

– Forest, etc 21.49 30 0.20 1.236 159.44 Recert

– Public Health 21.49 24 0.20 0.023 2.42 Total 165.68

Idaho Recertification Requirements:

 15 CEUs of 50 minutes, or 12.5 hours, for each ca tegory of certificati on held (option to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 2 years ( freq i,t = 0.50)

 Average number of category certifications per commercial applicator in state: 3.01

Annual Baseline Cost per Commercial App licator for Recertification – Idaho

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 12.5 0.5 3.01 404.36

Illinois Recertification Requirements:

 Must retake initial core exam, which takes 1 hour to take plus 7 hours of prep time, or 8 hours as per the cer tification requiremen ts (Appendix A.1)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 6 CEUs of 60 minutes, or 6 hours, for each category of certification

 Period is 3 years ( freq i,t = 0.333)

 Average number of category certifications per commercial applicator in state: 1.501

Annual Baseline Cost per Commercial Applicator for Recertification – Illinois

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs per applicator Cost ($)
Core recertification 21.49 8 0.333 1.0 57.31 Category recertification 21.49 6 0.333 1.501 64.52 Total 121.84

Indiana Recertification requirements:

 Requirement varies depending on category of certification; must complete requirements for each category cer tification held:

o Ag Plant, Ornamental/Turf, Industrial/Institutional:

 20 CEUs of 60 minutes, or 20 hours, per category of certification to recertify for core and the specific cate gory (option to retake initial exams for specific categories)

o Forest, Seed Treatment, Regulatory:

 10 CEUs of 60 minutes, or 10 hours, per category of certification to recertify for core and the specific cate gory (option to retake initial exams for specific categories)

o Aquatic, Right-of-Way, Public Health:

 15 CEUs of 60 minutes, or 15 hours, per category of certification to recertify for core and the specific cate gory (option to retake initial exams for specific categories

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 2 years for all categories years ( freq i,t = 0.50)

 Average number of category certifications per commercial applicator in state:

o Ag Plant, etc : 1.141

o Forest, etc : 0.047

o Aquatic, etc : 0.323

Annual Baseline Cost per Commercial Applic ator for Recertification – Indiana

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– Ag Plant, etc 21.49 20 0.50 1.1 245.22 Recert

– Forest, etc 21.49 10 0.50 0.05 5.10 Recert

– Aquatic, etc 21.49 15 0.50 0.32 51.99 Total 302.31*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Iowa Recertification Requirements:

 6 category-specific CEUs of 120 minutes, or 12 hours, per category of certification (option to retake category exam(s))

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

 Average number of category certifications per commercial applicator in state: 2.286

Annual Baseline Cost per Commercial App licator for Recertification – Iowa

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 12 0.333 2.286 196.54

Kansas Recertification requirements:

 Requirement varies depending on category of certification; must complete requirements for each category cer tification held:

o Ag Plant, Ornamental/Turf, Right-of-Way, Industrial/Institutional, Public Health, Regulatory, Demonstration/Research:

 8 CEUs (1 core & 7 cat) of 60 minutes, or 8 hours, per category of certification to recertify for core and the specific category (option to retake initial exams for core and specific categories)

o Ag Animal, Forest, Aquatic:

 6 CEUs (1 Core & 5 Cat) of 60 minu tes, or 6 hours, per category of certification to recertify for core and the specific category (option to retake initial exams for core and specific categories)

o Seed Treatment:

 4 CEUs (1 Core & 3 Cat) of 60 minutes, or 4 hours, to recertify for core and category (option to retake init ial exams for core and category)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 2 years ( freq i,t = 0.50)

 Average number of category certifications per commercial applicator in state:

o Ag Plant, etc : 1.681

o Ag Animal, etc : 0.030

o Seed Treatment: 0.017

Annual Baseline Cost per Commercial Applic ator for Recertifica tion – Kansas

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– Ag Plant, etc 21.49 8 0.5 1.681 144.54 Recert

– Ag Animal, etc 21.49 6 0.5 0.030 1.94 Recert

– Seed Treatment 21.49 4 0.5 0.017 0.71*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Total 147.19

Kentucky Recertification Requirements:

 12 CEUs (9 core & 3 cat) of 50 minutes, or 10 hours, regardless of number of categories of certification held (option to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is years ( freq i,t = 0.333)

 Average number of category cer tifications per commercial app licator in state: 1.43; but recertification requirements are not category specific

Annual Baseline Cost per Commercial Applic ator for Recertifica tion – Kentucky

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 10 0.333 1.0 71.64

Louisiana Recertification Requirements:

 Single training session of 390 mi nutes, or 6.5 hours, per category of certification to recertify for core and the specific category ( option to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

 Average number of category certifications per commercial applicator in state: 1.73

Annual Baseline Cost per Commercial Applic ator for Recertification – Louisiana

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 6.5 0.333 1.73 80.79

Maine Recertification Requirements:

 18 total CEUs of 60 minutes, or 18 hours, regardless of number of categories of certification held, but 3 CEUs mu st be for each category in wh ich a certification is held (option to retake initial exams for co re and each category of certification).

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 6 years ( freq i,t = 0.167)

 Average number of category cer tifications per commercial app licator in state: 2.247; but recertification requirements are not category specific*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Annual Baseline Cost for Recertification – Maine

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 18 0.167 1.0 64.47

Maryland Recertification requirements:

 Requirement varies depending on category of certification; must complete requirements for each category cer tification held :

o Ag Plant, Ag Animal, Ornamental/Turf, Industrial/Institutional, Public Health, Regulatory, Demonstration/Research:

 8 CEUs of 30 minutes, or 4 hours, per category of certification to recertify for core and the specific category (o ption to retake initial exams for specific categories)

o Forest, Seed Treatment, Aquatic, Right-of-Way:

 6 CEUs of 30 minutes, or 3 hours, per category of certification to recertify for core and the specific category (o ption to retake initial exams for specific categories)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 1 year for all categories ( freq i,t = 1.0)

 Average number of category certifications per commercial applicator in state:

o Ag Plant, etc : 0.989

o Forest, etc : 0.377

Annual Baseline Cost per Commercial Applic ator for Recertification – Maryland

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– Ag Plant, etc 21.49 4 1 0.989 85.03 Recert

– Forest, etc 21.49 3 1 0.377 24.28 Total 109.31

Massachusetts Recertification Requirements:

 12 category-specific CEUs of 50 minutes, or 10 hours, per category of certification (option to retake category exam(s))

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

 Average number of category certifications per commercial applicator in state: 1.451*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Annual Baseline Cost per Commercial Applicator for Recertification – Massachusetts

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 10 0.333 1.451 103.95

Michigan Recertification Requirements:

 16 CEUs (8 core & 8 cat) of 60 minutes, or 16 hours, for each category certification held (option to retake initial exams for co re and each category of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

 Average number of category certifications per commercial applicator in state: 2.258

Annual Baseline Cost per Commercial Applic ator for Recertifica tion – Michigan

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 16 0.333 2.258 258.84

Minnesota Recertification Requirements:

 Requirement varies depending on category of certification; must complete requirements for each category cer tification held:

o Ag Plant, Seed Treatment, Aquatic, Right-of-Way:

 Single training session of 6 hours, per cat egory of certification to recertify for core and the specific category (op tion to retake initial exams for core and each category of certification)

 Period is 3 years ( freq i,t = 0.333)

o Ag Animal, Forest, Ornamental/Tur f, Public Health, Regulatory:

 Single training session of 5 hours, per cat egory of certification to recertify for core and the specific category (op tion to retake initial exams for core and each category of certification)

 Period is 2 years ( freq i,t = 0.50)

o Industrial/Institutional:

 Single training session of 20 hours, to r ecertify for core and this category (option to retake initial exams fo r core and category certification)

 Period is 1 year ( freq i,t = 1.0)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Average number of category certifications per commercial applicator in state:

o Ag Plant, etc : 0.660

o Ag Animal, etc : 0.592

o Industrial/ Institutional: 0.162*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Annual Baseline Cost per Commercial Applic ator for Recertifica tion – Minnesota

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– Ag Plant, etc 21.49 6 0.333 0.660 28.35 Recert

– Ag Animal, etc 21.49 5 0.50 0.592 31.80 Recert

– Industrial/Institutional 21.49 20 1.0 0.162 69.72

Total 129.87

Mississippi Recertification Requirements:

 Single training session of 300 minut es, or 5 hours, recertifies fo r core and all categories, regardless of number of categor y certifications held (option to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

 Average number of category cer tifications per commercial app licator in state: 1.346; but recertification requirements are not category specific

Annual Baseline Cost per Commercial Applic ator for Recertification – Mississippi

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 5 0.333 1.0 35.82

Missouri Recertification Requirements:

 Single training session of 360 minut es, or 6 hours, recertifies fo r core and all categories, regardless of number of categor y certifications held (option to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

 Average number of category cer tifications per commercial app licator in state: 1.637; but recertification requirements are not category specific

Annual Baseline Cost per Commercial Applic ator for Recertifica tion – Missouri

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 6 0.333 1.0 42.98*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Montana Recertification Requirements:

 12 category-specific CEUs of 60 minutes, or 12 hours, per category of certification (option to retake category exam(s)); no additional core requirements

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 4 years ( freq i,t = 0.25)

 Average number of category certifications per commercial applicator in state: 1.327

Annual Baseline Cost per Commercial Applic ator for Recertification – Montana

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 12 0.25 1.3 85.57

Nebraska Recertification Requirements:

 Single training session of 360 minut es, or 6 hours, recertifies fo r core and all categories, regardless of number of categor y certifications held (option to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

 Average number of category cer tifications per commercial app licator in state: 1.419; but recertification requirements are not category specific

Annual Baseline Cost per Commercial Applic ator for Recertification – Nebraska

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 6 0.333 1.0 42.98

Nevada Recertification Requirements:

 12 CEUs (at least 2 core) of 60 minutes, or 12 hours, regardless of number of categories of certification held (option to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 4 years ( freq i,t = 0.25)

 Average number of category cer tifications per commercial app licator in state: 2.203; but recertification requirements are not category specific

Annual Baseline Cost per Commercial App licator for Recertification – Nevada

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 12 0.25 1.0 64.47*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

New Hampshire Recertification Requirements:

 12 category-specific CEUs of 60 minutes, or 12 hours, per category of certification (option to retake category exam(s )); no seed treatment category

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years ( freq i,t = 0.20)

 Average number of category certifications per commercial applicator in state: 1.944

Annual Baseline Cost per Commercial Applicat or for Recertification – New Hampshire

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 12 0.2 1.944 100.26

New Jersey Recertification Requirements:

 24 CEUs (8 core & 16 cat) of 30 minutes, or 12 hours, for each cat egory certification held (option to retake initial exams for core and each categor y of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years ( freq i,t = 0.20)

 Average number of category certifications per commercial applicator in state: 1.561

Annual Baseline Cost per Commercial Applicat or for Recertification – New Jersey

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 12 0.2 1.561 80.51

New Mexico Recertification Requirements:

 4 category-specific CEUs of 60 mi nutes, or 4 hours, per catego ry of certifi cation (option to retake category exam(s))

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 1 year ( freq i,t = 1.0)

 Average number of category certifications per commercial applicator in state: 2.273

Annual Baseline Cost per Commercial Applic ator for Recertification – New Mexico

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 4 1 2.273 586.24*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

New York Recertification requirements:

 Requirement varies depending on category of certification; must complete requirements for each category cer tification held:

o Industrial/Institutional:

 12 CEUs (at least 3 cat, 9 cat or co re) of 60 minutes, or 12 hours, to recertify for core and this category (op tion to retake initial exams for core and specific category)

o Ornamental/Turf:

 10 CEUs (at least 3 cat, 7 cat or co re) of 60 minutes, or 10 hours, to recertify for core and this category (op tion to retake initial exams for core and specific category)

o Ag Plant, Aquatic, Right- of-Way, Public Health:

 8 CEUs (at least 2 cat, 6 cat or core) of 60 minutes, or 8 hours, per category of certification to recertif y for core and the specific category (option to retake initial exams for core and specific category)

o Ag Animal, Forest:

 6 CEUs (at least 2 cat, 4 cat or core) of 60 minutes, or 6 hours, per category of certification to recertify for core and the specific category (option to retake initial exams for core and specific category)

o Seed Treatment, Regulatory, Demonstration/Research:

 5 CEUs (at least 2 cat, 3 cat or core) of 60 minutes, or 5 hours, per category of certification to recertify for core and the specific category (option to retake initial exams for core and specific category)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years for all categories ( freq i,t = 0.333)

 Average number of category certifications per commercial applicator in state:

o Industrial/ Institutional: 0.699

o Ornamental/Turf: 0.508

o Ag Plant, etc : 0.218

o Ag Animal, etc : 0.007

o Seed Treatment, etc : 0.019

Annual Baseline Cost per Commercial Applic ator for Recertification – New York

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– Industrial/Institutional 21.49 12 0.333 0.699 60.06

Recert

– Ornamental/Turf 21.49 10 0.333 0.058 36.38

Recert

– Ag Plant, etc 21.49 8 0.333 0.218 12.50 Recert

– Ag Animal, etc 21.49 6 0.333 0.007 0.31*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Recert

– Seed Treatment,
etc 21.49 5 0.333 0.019 0.69

Total 109.94

North Carolina Recertification requirements:

 Requirement varies depending on category of certification; must complete requirements for each category cer tification held:

o Ag Plant, Ornamental/Turf, Industrial/In stitutional, Demonstration/Research:

 10 CEUs of 60 minutes, or 10 hours, per category of certification to recertify for core and the specific cate gory (option to retake initial exams for specific categories)

o Ag Animal, Forest, Aquatic, Public Health, Regulatory:

 6 CEUs of 60 minutes, or 6 hours, per category of certification to recertify for core and the specific category (o ption to retake initial exams for specific categories)

o Right-of-Way:

 4 CEUs of 60 minutes, or 4 hours, to recertify for core and this category (option to retake initial exams for specific categories)

o Seed Treatment:

 3 CEUs of 60 minutes, or 3 hours, to recertify for core and this category (option to retake initial exams for specific categories)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years for all categories ( freq i,t = 0.20)

 Average number of category certifications per commercial applicator in state:

o Ag Plant, etc : 1.109

o Ag Animal, etc : 0.198

o Right-of-Way: 0.149

o Seed Treatment: 0.005

Annual Baseline Cost per Commercial Applicat or for Recertification – North Carolina

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– Ag Plant, etc 21.49 10 0.20 1.109 47.69
Recert

– Ag Animal, etc 21.49 6 0.20 0.198 5.09 Recert

– Right

‐ of

‐ Way 21.49 4 0.20 0.149 2.56 Recert

– Seed Treatment, etc 21.49 3 0.20 0.005 0.06

Total 55.40

North Dakota Recertification Requirements:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Single training session per category, or gr oup of categories (grouped for training purposes). Single session recertifies for core and the specific categor y, or, if category is in a training session group, for one or more cat egories included in the group (option to retake initial exams for core and each category of certification)

 Length of training session, and whether a categor y has a separate training session or is included in a group session, va ries depending on category:

o Ag Plant, Seed Treatment, Right-of-Wa y, Demonstration/Research: single session of 420 minutes, or 7 hours, recer tifies for core and for one or more categories that are included in this training session group

o Ornamental/Turf: Single session of 420 minutes, or 7 hours, recertifies for core and this category

o Industrial/Institutional/Public Health (NO TE: ND lumps Industrial/Institutional and Public Health together in single cat egory): Single sessi on of 360 minutes, or 6 hours, recertifies for core and this category

o NOTE: North Dakota does not offer Ag Animal, Forest, Aquatic, or Regulatory certification categories

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is three years ( freq i,t = 0.333)

 Average number of category certifications per commercial applicator in state:

o Ag Plant, etc : 0.850

o Ornamental/Turf: 0.175

o Industrial/Institutional/Public Health: 0.110

Annual Baseline Cost per Commercial Applicator for Recertification – North Dakota

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– Ag Plant, etc 21.49 7 0.333 0.850 42.63
Recert

– Ornamental/Turf 21.49 7 0.333 0.175 8.80 Recert

– Industrial/ Institutional/Public Health 21.49 6 0.333 0.110 4.74

Total 56.17

Ohio Recertification Requirements:

 Total of 5 CEUs (1 core + 1⁄2 cat-specific pe r category certification he ld + balance in any category) of 60 minutes, or 5 hours, regardle ss of number of cate gories of certification held (option to retake initial exams for core and each categor y of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

 Average number of category cer tifications per commercial app licator in state: 2.294; but recertification requirements are not category specific*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Annual Baseline Cost per Commercial App licator for Recertification – Ohio

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 5 0.333 1.0 35.82

Oklahoma Recertification requirements:

 Requirement varies depending on category of certification; must complete requirements for each category cer tification held:

o Ag Plant, Ornamental/Turf, Industrial/In stitutional, Demonstration/Research:

 20 CEUs of 60 minutes, or 20 hours, per category of certification to recertify for core and the specific cate gory (option to retake initial exams for specific categories)

o Right-of-Way, Public Health:

 15 CEUs of 60 minutes, or 15 hours, per category of certification to recertify for core and the specific cate gory (option to retake initial exams for specific categories)

o Forest:

 10 CEUs of 60 minutes, or 10 hours, to recertify for core and this category (option to retake initial exams for specific categories)

o Ag Animal, Seed Treatment, Aquatic:

 5 CEUs of 60 minutes, or 5 hours, to recertify for core and this category (option to retake initial exams for specific categories)

o NOTE: Oklahoma does not o ffer Regulatory category

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years for all categories ( freq i,t = 0.50)

 Average number of category certifications per commercial applicator in state:

o Ag Plant, etc : 1.763

o Right-of-Way, etc : 0.805

o Forest: 0.034

o Ag Animal, etc : 0.177

Annual Baseline Cost per Commercial Applic ator for Recertification – Oklahoma

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– Ag Plant, etc 21.49 20 0.20 1.763 151.54
Recert

– Right

‐ of

‐ Way, etc 21.49 15 0.20 0.805 51.92 Recert

– Forest 21.49 10 0.20 0.034 1.47 Recert

– Ag Animal, etc 21.49 5 0.20 0.177 3.80 Total 208.73

Oregon*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Recertification Requirements:

 Total of 40 CEUs of 60 minutes, or 40 hours, regardless of number of categories of certification held (option to retake initial exams for core and each category of certification). Not necessary to be either core- or category-specific CEUs.

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years ( freq i,t = 0.20)

 Average number of category cer tifications per commercial app licator in state: 2.215; but recertification requirements are not category specific

Annual Baseline Cost per Commercial App licator for Recertification – Oregon

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 40 0.2 1.0 171.93

Pennsylvania Recertification requirements:

 All commercial applicators must take 6 co re-specific CEUs of 30 minutes, or 3 hours, plus category requirements (below)

 Category requirement varies depending on cat egory of certification; must complete requirements for each category certification held:

o Ag Plant, Ornamental/Turf, Indus trial/Institutional, Regulatory, Demonstration/Research:

 10 CEUs of 30 minutes, or 5 hours, per category of certification to recertify for the specific category (option to retake initial exams for specific categories)

o Forest, Right-of-Way, Public Health:

 8 CEUs of 30 minutes, or 4 hours, per category of certification to recertify for the specific category (option to retake initial exams for specific categories)

o Ag Animal:

 6 CEUs of 30 minutes, or 3 hours, to r ecertify for this ca tegory (option to retake initial exam for category)

o Seed Treatment, Aquatic:

 4 CEUs of 30 minutes, or 2 hours, per category of certification to recertify for the specific category (option to retake initial exams for specific categories)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years for all categories ( freq i,t = 0.333)

 Average number of category certifications per commercial applicator in state:

o Ag Plant, etc : 1.165

o Forest, etc : 0.376

o Ag Animal: 0.002*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

o Seed Treatment, etc : 0.270

Annual Baseline Cost per Commercial Applicat or for Recertification – Pennsylvania

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– Core 21.49 3 0.333 1.0 21.49
Recert

– Ag Plant, etc 21.49 5 0.333 1.165 41.72
Recert

– Forest, etc 21.49 4 0.333 0.376 10.78 Recert

– Ag Animal 21.49 3 0.333 0.002 0.05 Recert

– Seed Treatment, etc 21.49 2 0.333 0.270 3.87 Total 77.91

Rhode Island Recertification Requirements:

 8 category-specific CEUs of 60 minutes, or 8 hours, per cate gory of certification (option to retake category exam(s))

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years ( freq i,t = 0.20)

 Average number of category certifications per commercial applicator in state: 1.876

Annual Baseline Cost per Commercial Applicat or for Recertification – Rhode Island

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 8 0.2 1.876 64.50 Total 64.50

South Carolina Recertification Requirements:

 Total of 10 CEUs of 60 minutes, or 10 hours, regardless of number of categories of certification held (option to retake initial exams for core and each category of certification). Not necessary to be either core- or category-specific CEUs.

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years ( freq i,t = 0.20)

 Average number of category cer tifications per commercial app licator in state: 1.562; but recertification requirements are not category specific

Annual Baseline Cost per Commercial Applicat or for Recertification – South Carolina

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 10 0.2 1.0 42.98

South Dakota*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Recertification Requirements:

 Single category-specific trai ning session of 480 minutes, or 8 hours, for each category certification held (option to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 2 years ( freq i,t = 0.50)

 Average number of category certifications per commercial applicator in state: 1.689

Annual Baseline Cost per Commercial Applicat or for Recertification – South Dakota

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 8 0.5 1.7 145.20

Tennessee Recertification requirements:

 Requirement varies depending on category of certification; must complete requirements for each category cer tification held :

o Industrial/Institutional:

 30 CEUs of 60 minutes, or 30 hours, to recertify for this category (option to retake initial exam for this category)

o Ag Plant, Ornamental/Turf, Right-of-Way, Public Health, Demonstration/Research:

 18 CEUs of 60 minutes, or 18 hours, per category of certification to recertify for the specific category (option to retake initial exams for specific categories)

o Forest, Seed Treatment, Aquatic:

 12 CEUs of 60 minutes, or 12 hours, per category of certification to recertify for the specific category (option to retake initial exams for specific categories)

o NOTE: Tennessee does not offer Ag Animal or Regul atory categories

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years for all categories ( freq i,t = 0.333)

 Average number of category certifications per commercial applicator in state:

o Industrial/ Institutional: 0.535

o Ag Plant, etc : 0.472

o Forest, etc : 0.042*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Annual Baseline Cost per Commercial Applic ator for Recertification – Tennessee

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– Industrial/Institutional 21.49 30 0.333 0.535 114.88
Recert

– Ag Plant, etc 21.49 18 0.333 0.472 60.89
Recert

– Forest, etc 21.49 12 0.333 0.042 3.62 Total 179.39

Texas Recertification requirements:

 Requirement varies depending on category of certification; must complete requirements for each category cer tification held:

o Ag Plant, Ag Animal, Forest, Seed Tr eatment, Aquatic, Right-of-Way, Public Health, Regulatory, Demonstration/Research:

 5 CEUs of 60 minutes, or 5 hours, per category of certification to recertify for the specific category (option to re take initial exam for each category)

o Ornamental/Turf, Industrial/Institutional:

 3 CEUs (2 core + 1 cat) of 60 mi nutes, or 3 hours, per category of certification to recertify for the specif ic category (option to retake initial exams for specific categories)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 1 year for all categories ( freq i,t = 1.0)

 Average number of category certifications per commercial applicator in state:

o Ag Plant, etc : 0.803

o Ornamental/Turf, etc : 1.207

Annual Baseline Cost per Commercial App licator for Recertification – Texas

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– Ag Plant, etc 21.49 5 1 0.803 86.33
Recert

– Ornamental/Turf, etc 21.49 3 1 1.207 77.80 Total 164.13

Utah Recertification Requirements:

 Total of 24 CEUs of 60 minutes, or 24 hours, regardless of number of categories of certification held (option to retake initial exams for core and each category of certification).

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

 Average number of category cer tifications per commercial app licator in state: 2.085; but recertification requirements are not category specific*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Annual Baseline Cost per Commercial App licator for Recertification – Utah

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 24 0.333 1.0 171.93

Vermont Recertification Requirements:

 16 category-specific CEUs of 60 minutes, or 16 hours, per category of certification (option to retake category exam(s))

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years ( freq i,t = 0.20)

 Average number of category certifications per commercial applicator in state: 1.657

Annual Baseline Cost per Commercial App licator for Recertification – Vermont

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 16 0.2 1.657 113.96

Virginia Recertification Requirements:

 Single category-specific trai ning session of 180 minutes, or 3 hours, for each category certification held (option to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equiva lent in effort to taking the training

 Period is 2 years ( freq i,t = 0.50)

 Average number of category certifications per commercial applicator in state: 1.955

Annual Baseline Cost per Commercial Applic ator for Recertification – Virginia

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 3 0.5 1.955 63.02

Washington Recertification Requirements:

 Total of 40 CEUs of 50 minutes, or 33.33 hours, regardless of number of categories of certification held (option to retake initial exams for core and each category of certification). Not necessary to be either core- or category-specific CEUs.

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years ( freq i,t = 0.20)

 Average number of category cer tifications per commercial app licator in state: 2.451; but recertification requirements are not category specific*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Annual Baseline Cost per Commercial Applic ator for Recertification – Washington

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 33.33 0.2 1.0 143.26

West Virginia Recertification Requirements:

 Total of 20 CEUs of 30 minutes, or 10 hours, regardless of number of categories of certification held (option to retake initial exams for core and each category of certification). Not necessary to be either core- or category-specific CEUs.

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

 Average number of category cer tifications per commercial app licator in state: 1.484; but recertification requirements are not category specific

Annual Baseline Cost per Commercial Applicat or for Recertification – West Virginia

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 10 0.333 1.0 71.64

Wisconsin Recertification Requirements:

 Must retake initial exam for each category of certification (no core)

 Each exam takes 1 hour to take plus 7 hours of prep time, or 8 hours, as per initial certification (see Appendix A.1)

 Period is 5 years ( freq i,t = 0.20)

 Average number of category certifications per commercial applicator in state: 1.242

Annual Baseline Cost per Commercial Applic ator for Recertifica tion – Wisconsin

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 8 0.2 1.2 42.70

Wyoming Recertification Requirements:

 Total of 24 CEUs of 60 minutes, or 24 hours, regardless of number of categories of certification held (option to retake initial exams for core and each category of certification). Not necessary to be either core- or category-specific CEUs.

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Average number of category cer tifications per commercial app licator in state: 3.583; but recertification requirements are not category specific

Annual Baseline Cost per Commercial App licator for Recertification – Wyoming

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 24 0.333 1.0 171.93

Puerto Rico Recertification Requirements:

 Total of 8 CEUs of 60 minutes, or 8 hours, regardless of numbe r of categories of certification held (option to retake initial exams for core and each category of certification). Not necessary to be either core- or category-specific CEUs.

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 4 years ( freq i,t = 0.25)

 Average number of category cer tifications per commercial app licator in state: 1.525; but recertification requirements are not category specific

Annual Baseline Cost per Commercial Applicat or for Recertification – Puerto Rico

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 8 0.250 1.0 42.98

Other Tribes/Territories Recertification Requirements:

 EPA applies Puerto Rico’s requirements to the other tribes and territories.

Annual Baseline Cost per Commercial App licator for Recertification – Other

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recertification 21.49 8 0.250 1.0 42.98

5.1.1.1 Comm Recert-01: Exam or 6 hour CEUs/training for core and each category recertification every three years

Step 2 - Calculate Costs per Existing Commercial Applicator of Potential Requirement

Recertification requirement:

 All commercial applicators take 6 core-specific CEUs, plus 6 category-specific CEUs per category of certification held (o ption to retake initial exams for core and each category of certification)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

 Average number of category certifications per commercial applicator na tionally: 1.778, but number will vary by state as given above

Alabama Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Alabama

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.113 47.84 Total 90.83

Alaska Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Alaska

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.357 58.32 Total 101.30

Arizona Comm Recert-01, Potential Requirement Cost per Commercial Applic ator; Arizona

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 2.287 98.29 Total 141.27

Arkansas Comm Recert-01, Potential Requirement Cost p er Commercial Applicator; Arkansas

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.385 59.54 Total 102.53*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

California Comm Recert-01, Potential Requirement Cost p er Commercial Applicator; California

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.529 65.71 Total 108.70

Colorado Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Colorado

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 2.682 115.28 Total 158.27

Connecticut Comm Recert-01, Potential Requirement Cost p er Commercial Applicator; Connecticut

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.547 66.48 Total 109.47

Delaware Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Delaware

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.604 68.96 Total 111.94

Florida Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Florida

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 2.604 111.92 Total 154.90*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Georgia Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Georgia

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.324 56.91 Total 99.89

Hawaii Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Hawaii

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.297 55.74 Total 98.72

Idaho Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Idaho

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 3.010 129.40 Total 172.38

Illinois Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Illinois

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.501 64.52 Total 107.51

Indiana Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Indiana

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs (per applicator) Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.511 64.95 Total 107.93*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Iowa Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Iowa

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 2.286 98.27 Total 141.25

Kansas Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Kansas

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.728 74.28 Total 117.26

Kentucky Comm Recert-01, Potential Requirement Cost p er Commercial Applicator; Kentucky

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.435 61.66 Total 104.65

Louisiana Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Louisiana

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.735 74.57 Total 117.55

Maine Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Maine

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 2.247 96.57 Total 139.56*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Maryland Comm Recert-01, Potential Requirement Cost p er Commercial Applicator; Maryland

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.366 58.70 Total 101.69

Massachusetts Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Massachusetts

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.451 62.37 Total 105.35

Michigan Comm Recert-01, Potential Requirement Cost p er Commercial Applicator; Michigan

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 2.258 97.07 Total 140.05

Minnesota Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Minnesota

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.414 60.77 Total 103.75

Mississippi Comm Recert-01, Potential Requirement Cost p er Commercial Applicator; Mississippi

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.346 57.86 Total 100.85*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Missouri Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Missouri

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.637 70.36 Total 113.34

Montana Comm Recert-01, Potential Requirement Cost p er Commercial Applicator; Montana

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.327 57.04 Total 100.03

Nebraska Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Nebraska

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.419 60.98 Total 103.96

Nevada Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Nevada

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 2.203 94.68 Total 137.67

New Hampshire Comm Recert-01, Potential Requirement Co st per Commercial Applicator; New Hampshire

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.944 83.55 Total 126.53*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

New Jersey Comm Recert-01, Potential Requirement Cost p er Commercial Applicator; New Jersey

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.561 67.09 Total 110.07

New Mexico Comm Recert-01, Potential Requirement Cost per Commercial Applicator; New Mexico

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 2.273 97.71 Total 140.69

New York Comm Recert-01, Potential Requirement Cost p er Commercial Applicator; New York

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.451 62.37 Total 105.35

North Carolina Comm Recert-01, Potential Requirement Cost per Commercial Applicator; North Carolina

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.461 62.78 Total 105.77

North Dakota Comm Recert-01, Potential Requirement Cost per Commercial Applicator; North Dakota

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.660 71.35 Total 114.33*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Ohio Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Ohio

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 2.294 98.58 Total 141.57

Oklahoma Comm Recert-01, Potential Requirement Cost p er Commercial Applicator; Oklahoma

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 2.779 119.45 Total 162.44

Oregon Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Oregon

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 2.215 95.20 Total 138.19

Pennsylvania Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Pennsylvania

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.813 77.95 Total 120.93

Rhode Island Comm Recert-01, Potential Requirement Cost p er Commercial Applicator; Rhode Island

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.876 80.63 Total 123.61*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

South Carolina Comm Recert-01, Potential Requirement Cost p er Commercial Applicator; South Carolina

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.562 67.16 Total 110.14

South Dakota Comm Recert-01, Potential Requirement Cost per Commercial Applicator; South Dakota

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 N/A (or 1.0) 42.98 Recert

– categories 21.49 6 0.333 1.689 72.60 Total 115.58

Tennessee Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Tennessee

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.049 45.08 Total 88.07

Texas Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Texas

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 2.010 86.40 Total 129.38

Utah Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Utah

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 2.085 89.62 Total 132.60*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Vermont Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Vermont

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.657 71.22 Total 114.21

Virginia Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Virginia

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.955 84.02 Total 127.01

Washington Comm Recert-01, Potential Requirement Cost p er Commercial Applicator; Washington

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 2.451 105.34 Total 148.32

West Virginia Comm Recert-01, Potential Requirement Cost per Commercial Applicator; West Virginia

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.484 63.78 Total 106.76

Wisconsin Comm Recert-01, Potential Requirement Cost p er Commercial Applicator; Wisconsin

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.242 53.38 Total 96.36*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Wyoming Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Wyoming

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 3.583 153.99 Total 196.97

Puerto Rico Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Puerto Rico

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.525 65.54 Total 108.52

Other tribes and territories Comm Recert-01, Potential Requirement Cost per Commercial Applicator; Other

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.333 1.0 42.98 Recert

– categories 21.49 6 0.333 1.000 42.98 Total 85.97

Step 3 – Estimate Jurisdiction Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per first-time private applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per first-time priv ate applicator, presented in Step 2.

 The number of existing comm ercial applicators (N Xst Com ) per year in each jurisdiction is obtained from the CPARD da tabase (see Chapter 3.3.1)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for initial certification of private applicat ors in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for initial certificati on of private applicators unde r the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis, but distributed over different time frame or not*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

delineated between core and category certifi cation. EPA acknowledges that jurisdictions will have to revise their regulations to acco mmodate the potential changes, but that the number of CEUs required of an applicator may not change. Given the above: RC B = cost r,i, a B x N Xst Com RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Com
Values are presented in the table below.

Comm Recert-01; Step 3; Total Annual Jurisdictional Baseline and Po tential Requirement Costs for Recertification of Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Com RC B ($) RC P ($)
Alabama 199 91 3,772 752,001 752,001 Alaska 117 101 560 65,276 65,276 Arizona 246 141 6,240 1,533,383 1,533,383 Arkansas 40 103 3,893 154,552 399,174 California 300 109 32,546 9,749,114 9,749,114 Colorado 35 158 3,209 111,278 507,827 Connecticut 80 109 2,686 214,278 294,009 Delaware 331 112 1,812 599,829 599,829 Florida 181 155 15,303 2,768,686 2,768,686 Georgia 47 100 9,700 456,951 968,925 Hawaii 166 99 1,151 190,695 190,695 Idaho 404 172 3,578 1,446,885 1,446,885 Illinois 122 108 12,053 1,468,478 1,468,478 Indiana 302 108 8,945 2,704,153 2,704,153 Iowa 197 141 11,904 2,339,566 2,339,566 Kansas 147 117 5,148 757,679 757,679 Kentucky 72 105 10,022 717,932 1,048,722 Louisiana 81 118 3,907 315,646 459,307 Maine 64 140 1,437 92,660 200,565 Maryland 109 102 4,084 446,444 446,444 Massachusetts 104 105 1,986 206,425 209,211 Michigan 259 140 12,803 3,314,048 3,314,048 Minnesota 130 104 8,375 1,087,648 1,087,648 Mississippi 36 101 2,742 98,210 276,501 Missouri 43 113 6,814 292,863 772,243 Montana 86 100 2,133 182,483 213,323 Nebraska 43 104 8,609 370,024 894,980 Nevada 64 138 1,390 89,641 191,402 New Hampshire 100 127 949 95,164 120,101 New Jersey 81 110 8,452 680,426 930,305*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

New Mexico 195 141 1,723 336,634 336,634 New York 110 105 17,653 1,940,669 1,940,669 North Carolina 55 106 17,012 942,524 1,799,266 North Dakota 56 114 4,889 274,568 558,926 Ohio 36 142 11,565 414,240 1,637,185 Oklahoma 209 162 9,002 1,878,895 1,878,895 Oregon 172 138 4,396 755,809 755,809 Pennsylvania 78 121 13,850 1,079,009 1,674,831 Rhode Island 65 124 606 39,109 74,948 South Carolina 43 110 5,009 215,294 551,662 South Dakota 145 116 4,943 717,669 717,669 Tennessee 179 88 13,051 2,341,228 2,341,228 Texas 164 129 17,478 2,868,702 2,868,702 Utah 172 133 3,389 582,674 582,674 Vermont 114 114 848 96,579 96,790 Virginia 63 127 6,325 398,552 803,248 Washington 143 148 14,343 2,054,848 2,127,403 West Virginia 72 107 1,747 125,163 186,524 Wisconsin 43 96 11,287 481,957 1,087,571 Wyoming 172 197 1,572 270,190 309,540 Puerto Rico 43 109 5,559 238,948 603,299 Other Jurisdictions 43 86 2,134 91,711 183,422 Total, U.S. 364,579 52,120,660 60,500,645

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of initial certifi cation would remain constant thereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.83*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Comm Recert-01; A pplicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 6,607 6,607 0 Alaska 574 574 0 Arizona 13,472 13,472 0 Arkansas 3,025 1,358 1,667 California 85,657 85,657 0 Colorado 3,680 978 2,703 Connecticut 2,426 1,883 543 Delaware 5,270 5,270 0 Florida 24,326 24,326 0 Georgia 7,504 4,015 3,489 Hawaii 1,675 1,675 0 Idaho 12,712 12,712 0 Illinois 12,902 12,902 0 Indiana 23,759 23,759 0 Iowa 20,556 20,556 0 Kansas 6,657 6,657 0 Kentucky 8,562 6,308 2,254 Louisiana 3,752 2,773 979 Maine 1,550 814 735 Maryland 3,923 3,923 0 Massachusetts 1,833 1,814 19 Michigan 29,118 29,118 0 Minnesota 9,556 9,556 0 Mississippi 2,078 863 1,215 Missouri 5,840 2,573 3,267 Montana 1,814 1,603 210 Nebraska 6,829 3,251 3,578 Nevada 1,481 788 694 New Hampshire 1,006 836 170*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

New Jersey 7,681 5,978 1,703 New Mexico 2,958 2,958 0 New York 17,051 17,051 0 North Carolina 14,120 8,281 5,839 North Dakota 4,350 2,412 1,938 Ohio 11,974 3,640 8,335 Oklahoma 16,508 16,508 0 Oregon 6,641 6,641 0 Pennsylvania 13,541 9,480 4,061 Rhode Island 588 344 244 South Carolina 4,184 1,892 2,292 South Dakota 6,306 6,306 0 Tennessee 20,570 20,570 0 Texas 25,205 25,205 0 Utah 5,119 5,119 0 Vermont 850 849 1 Virginia 6,260 3,502 2,758 Washington 18,549 18,054 494 West Virginia 1,518 1,100 418 Wisconsin 8,362 4,235 4,127 Wyoming 2,642 2,374 268 Puerto Rico 4,583 2,099 2,483 Other Jurisdictions 1,431 806 625

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm Recert-01; Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 509,134 452,022 57,112 U.S. (annualized value) 57,948 51,447 6,500 Per applicator incremental cost 0.018

State Costs of Administering R ecertification Exam or Verifying Completion of Recertification Training for General Competency

The options analyzed in this sec tion address the requirements for re certification of applicators in the core competency as they apply to the admi nistration of recertifica tion exam or verifying completion of required trai ning for recertification.

Commercial Applicator
Currently, federal standards regard ing recertification of commercial applicator s require states to have process to assure continued competency. However, there are no standards for the process or frequency of recertification.
States currently have a variety of options for recertification, w ith recertification period ranging from 1-6 years.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that commercial applicators co mpleted the required trai ning. EPA assumes that it takes a state official one hour to conduct ve rification of the traini ng requirements for 50 commercial applicators. Therefor e, whether a jurisdiction recertifi es by exam or training, its cost of administration is the same – one hour of a state official’s time for 50 commercial applicators.

5.1.1.2 Comm Recert-01: Administer Exam or 6-ho ur Training for Commercial Core and Category Recertification: Every 3 Years

Step 1 - Calculate Baseline Costs

 To be certified for general competency, comm ercial applicators must pass core exam and be certified in at least one existing EPA cate gories – Agricultural Plant category, Public Health category, etc

 All jurisdictions recertify their commercial applicators by exam in the baseline.

 All jurisdictions except 4 states (CO, FL, SC , & SD) proctor the rece rtification exam, and therefore, only these 4 states w ould be impacted by Comm Recert-01

 The wage rate for a Jr Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm Recert-01; Step 1; Baseline Cost per Applicator to Proctor Co mmercial General Compet ency Recertification Exam or Training

Jurisdictions Wage ($/hour) Recertification cycle Frequency Cost ($)

Alabama 39.44 0.33 0.01 0.26 Alaska 39.44 0.33 0.01 0.26 Arizona 39.44 1.00 0.02 0.79 Arkansas 39.44 0.33 0.01 0.26 California 39.44 0.44 0.01 0.35 Colorado 0.33 0.01 0.00 Connecticut 39.44 0.20 0.00 0.16 Delaware 39.44 1.00 0.02 0.79 Florida 0.62 0.01 0.00 Georgia 39.44 0.20 0.00 0.16 Hawaii 39.44 0.20 0.00 0.16 Idaho 39.44 0.50 0.01 0.39 Illinois 39.44 0.33 0.01 0.26 Indiana 39.44 0.50 0.01 0.39 Iowa 39.44 0.33 0.01 0.26 Kansas 39.44 0.50 0.01 0.39 Kentucky 39.44 0.33 0.01 0.26 Louisiana 39.44 0.33 0.01 0.26 Maine 39.44 0.17 0.00 0.13 Maryland 39.44 1.00 0.02 0.79 Massachusetts 39.44 0.33 0.01 0.26 Michigan 39.44 0.33 0.01 0.26 Minnesota 39.44 0.48 0.01 0.38 Mississippi 39.44 0.33 0.01 0.26 Missouri 39.44 0.33 0.01 0.26 Montana 39.44 0.25 0.01 0.20 Nebraska 39.44 0.33 0.01 0.26 Nevada 39.44 0.33 0.01 0.26 New Hampshire 39.44 0.20 0.00 0.16 New Jersey 39.44 0.20 0.00 0.16 New Mexico 39.44 0.33 0.01 0.26 New York 39.44 0.33 0.01 0.26 North Carolina 39.44 0.20 0.00 0.16 North Dakota 39.44 0.33 0.01 0.26*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Ohio 39.44 0.33 0.01 0.26 Oklahoma 39.44 0.20 0.00 0.16 Oregon 39.44 0.20 0.00 0.16 Pennsylvania 39.44 0.33 0.01 0.26 Rhode Island 39.44 0.20 0.00 0.16 South Carolina 0.20 0.00 0.00 South Dakota 0.50 0.01 0.00 Tennessee 39.44 0.33 0.01 0.26 Texas 39.44 1.00 0.02 0.79 Utah 39.44 0.33 0.01 0.26 Vermont 39.44 0.20 0.00 0.16 Virginia 39.44 0.50 0.01 0.39 Washington 39.44 0.20 0.00 0.16 West Virginia 39.44 0.33 0.01 0.26 Wisconsin 39.44 0.20 0.00 0.16 Wyoming 39.44 0.33 0.01 0.26 Puerto Rico 39.44 0.25 0.01 0.20 Other 39.44 0.25 0.01 0.20

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Comm Recert-01; Step 2; Cost per Applicator to Proctor Commercia l General Competency Recertification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.007 0.26 Total 0.26

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N = number of commercial applicat ors certified in aerial category.

Given the above: RC B = cost r,i, a B x N RC t=3 P = cost r,i, P x N

Values are presented in the table below.

Table: Comm Recert-01; Step 3; Total Annual Baseline and Potential Requi rement Costs for Proctoring General Competency Recertification Exam for Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, P ($) N E

xist Cor e N E

xist Cate g or

y N Sum RC B ($) RC t=3 P ($) Alabama 0.26 0.26 3,772 4,199 7,971 2,096 2,096 Alaska 0.26 0.26 560 759 1,319 347 347 Arizona 0.79 0.26 6,240 14,270 20,510 16,178 16,178 Arkansas 0.26 0.26 3,893 5,394 9,287 2,442 2,442 California 0.35 0.26 32,546 49,759 82,305 28,515 28,515 Colorado 0.00 0.26 3,209 8,606 11,815 0 3,106 Connecticut 0.16 0.26 2,686 4,154 6,840 1,079 1,799 Delaware 0.79 0.26 1,812 2,908 4,720 3,723 3,723 Florida 0.00 0.26 15,303 39,845 55,148 0 14,500 Georgia 0.16 0.26 9,700 12,842 22,542 3,556 5,927 Hawaii 0.16 0.26 1,151 1,493 2,644 417 695 Idaho 0.39 0.26 3,578 10,772 14,350 5,660 5,660 Illinois 0.26 0.26 12,053 18,094 30,147 7,927 7,927 Indiana 0.39 0.26 8,945 13,516 22,461 8,859 8,859 Iowa 0.26 0.26 11,904 27,215 39,119 10,286 10,286 Kansas 0.39 0.26 5,148 8,895 14,043 5,538 5,538 Kentucky 0.26 0.26 10,022 14,377 24,399 6,415 6,415 Louisiana 0.26 0.26 3,907 6,779 10,686 2,810 2,810 Maine 0.13 0.26 1,437 3,229 4,666 613 1,227 Maryland 0.79 0.26 4,084 5,578 9,662 7,621 7,621 Massachusetts 0.26 0.26 1,986 2,882 4,867 1,280 1,280 Michigan 0.26 0.26 12,803 28,913 41,717 10,969 10,969 Minnesota 0.38 0.26 8,375 11,840 20,215 7,647 7,647*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Mississippi 0.26 0.26 2,742 3,691 6,433 1,691 1,691 Missouri 0.26 0.26 6,814 11,153 17,966 4,724 4,724 Montana 0.20 0.26 2,133 2,830 4,963 979 1,305 Nebraska 0.26 0.26 8,609 12,213 20,822 5,475 5,475 Nevada 0.26 0.26 1,390 3,063 4,453 1,171 1,171 New Hampshire 0.16 0.26 949 1,845 2,794 441 735 New Jersey 0.16 0.26 8,452 13,192 21,644 3,415 5,691 New Mexico 0.26 0.26 1,723 3,916 5,639 1,483 1,483 New York 0.26 0.26 17,653 25,615 43,268 11,377 11,377 North Carolina 0.16 0.26 17,012 24,848 41,860 6,604 11,006 North Dakota 0.26 0.26 4,889 8,115 13,004 3,419 3,419 Ohio 0.26 0.26 11,565 26,525 38,089 10,015 10,015 Oklahoma 0.16 0.26 9,002 25,016 34,018 5,367 8,944 Oregon 0.16 0.26 4,396 9,737 14,133 2,230 3,716 Pennsylvania 0.26 0.26 13,850 25,116 38,965 10,245 10,245 Rhode Island 0.16 0.26 606 1,137 1,744 275 458 South Carolina 0.00 0.26 5,009 7,826 12,835 0 3,375 South Dakota 0.00 0.26 4,943 8,348 13,291 0 3,495 Tennessee 0.26 0.26 13,051 13,688 26,739 7,031 7,031 Texas 0.79 0.26 17,478 35,133 52,611 41,500 41,500 Utah 0.26 0.26 3,389 7,066 10,455 2,749 2,749 Vermont 0.16 0.26 848 1,404 2,252 355 592 Virginia 0.39 0.26 6,325 12,363 18,688 7,370 7,370 Washington 0.16 0.26 14,343 35,151 49,494 7,808 13,014 West Virginia 0.26 0.26 1,747 2,592 4,340 1,141 1,141 Wisconsin 0.16 0.26 11,287 14,016 25,303 3,992 6,653 Wyoming 0.26 0.26 1,572 5,630 7,202 1,894 1,894 Puerto Rico 0.20 0.26 5,559 8,477 14,036 2,768 3,690 Other 0.20 0.26 2,134 2,134 4,267 842 1,122 Total, U.S. 1,012,735 280,335 330,646

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third year, all commercial a pplicators with aerial certification must be recertified. EPA assumes that one-third of these app licators will recertify in each year. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-time aer ial applicators in the regions is assumed to be constant over time, existing aerial applicat ors in jurisdictions without a category will only need to obtain certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Recert-01; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 18 18 0 Alaska 3 3 0 Arizona 142 142 0 Arkansas 21 21 0 California 251 251 0 Colorado 21 0 21 Connecticut 14 9 5 Delaware 33 33 0 Florida 99 0 99 Georgia 47 31 16 Hawaii 6 4 2 Idaho 50 50 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Illinois 70 70 0 Indiana 78 78 0 Iowa 90 90 0 Kansas 49 49 0 Kentucky 56 56 0 Louisiana 25 25 0 Maine 10 5 4 Maryland 67 67 0 Massachusetts 11 11 0 Michigan 96 96 0 Minnesota 67 67 0 Mississippi 15 15 0 Missouri 42 42 0 Montana 11 9 2 Nebraska 48 48 0 Nevada 10 10 0 New Hampshire 6 4 2 New Jersey 46 30 16 New Mexico 13 13 0 New York 100 100 0 North Carolina 88 58 30 North Dakota 30 30 0 Ohio 88 88 0 Oklahoma 72 47 24 Oregon 30 20 10 Pennsylvania 90 90 0 Rhode Island 4 2 1 South Carolina 23 0 23 South Dakota 24 0 24 Tennessee 62 62 0 Texas 365 365 0 Utah 24 24 0 Vermont 5 3 2 Virginia 65 65 0 Washington 104 69 35 West Virginia 10 10 0 Wisconsin 53 35 18 Wyoming 17 17 0 Puerto Rico 31 24 6*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Other 9 7 2

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Commercial Recert-01; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 2,806 2,463 343 U.S. (annualized value) 319 280 39

5.1.1.3 Comm Recert-02: Exam for Commercial Core and Category Recertification: Every 3 Years

The costs are identical to those of Comm Recert-01.

State Costs of Administering R ecertification Exam or Verifying Completion of Recertification Training for General Competency

The options analyzed in this sec tion address the requirements for re certification of applicators in the core competency as they apply to the admi nistration of recertifica tion exam or verifying completion of required trai ning for recertification.

Commercial Applicator
Currently, federal standards regard ing recertification of commercial applicator s require states to have process to assure continued competency. However, there are no standards for the process or frequency of recertification.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

States currently have a variety of options for recertification, w ith recertification period ranging from 1-6 years.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that commercial applicators co mpleted the required trai ning. EPA assumes that it takes a state official one hour to conduct ve rification of the traini ng requirements for 50 commercial applicators. Therefor e, whether a jurisdiction recertifi es by exam or training, its cost of administration is the same – one hour of a state official’s time for 50 commercial applicators.

5.1.1.4 Comm Recert-02: Administer Exam for Commercial Core and Category Recertification: Every 3 Years

Comm Recert-02 is a less flexib le version of Comm Recert-01, re quiring recertification only by exams. Since both proctoring one hour exam for 50 applicators and verifying training requirements for 50 applicators ta ke one hour of a Jr technician ’s time, the costs of Comm Recert-02 are identical to t hose of Comm Recert-01.

5.1.1.5 Comm Recert-04: Exam or 6 hour CEUs/training for core and each category recertification every five years

Step 2 - Calculate Costs per Existing Commercial Applicator of Potential Requirement Certification requirement:

 All commercial applicators take 6 core-specific CEUs, plus 6 category-specific CEUs per category of certification held (o ption to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years ( freq i,t = 0.20)

 Average number of category certifications per commercial applicator na tionally: 1.778, but number will vary by state as give n above (see baseline description)

National Average Comm Recert-04, Potential Requirement Cost per Commercial Applicator; National Average

Action Wage ($) Time (hours) Frequency (per year) Avg # cat. certs
per applicator Cost ($)
Recert

– core 21.49 6 0.20 1.0 25.79 Recert

– categories 21.49 6 0.20 1.778 45.85 Total 71.64

Average cost per applicator would vary from a low of $51.58 in the sma ll jurisdiction combined into the “Other Jurisdiction” region where there is approximately one cat egory certification per*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

applicator to a high of $118.18 in Wyoming wher e there is an averag e of 3.6 category certifications per applicator.

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per first-time private applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per first-time private applicator, shown below.

 The number of existing comm ercial applicators (N Xst Com ) per year in each jurisdiction is obtained from the CPARD da tabase (see Chapter 3.3.1)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for initial certification of private applicat ors in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for initial certificati on of private applicators unde r the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis, but distributed over different time frame or not delineated between core and category certifi cation. EPA acknowledges that jurisdictions will have to revise their regulations to acco mmodate the potential changes, but that the number of CEUs required of an applicator may not change. Given the above: RC B = cost r,i, a B x N Xst Com RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Com
Values are presented in the table below.

Comm Recert-04; Step 3; Total Annual Jurisdictional Baseline and Po tential Requirement Costs for Recertification of Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Com RC B ($) RC P ($)
Alabama 199 54 3,772 752,001 752,001 Alaska 117 61 560 65,276 65,276 Arizona 246 85 6,240 1,533,383 1,533,383 Arkansas 40 62 3,893 154,552 239,504 California 300 65 32,546 9,749,114 9,749,114 Colorado 35 95 3,209 111,278 304,696 Connecticut 80 66 2,686 214,278 214,278 Delaware 331 67 1,812 599,829 599,829*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Florida 181 93 15,303 2,768,686 2,768,686 Georgia 47 60 9,700 456,951 581,355 Hawaii 166 59 1,151 190,695 190,695 Idaho 404 103 3,578 1,446,885 1,446,885 Illinois 122 65 12,053 1,468,478 1,468,478 Indiana 302 65 8,945 2,704,153 2,704,153 Iowa 197 85 11,904 2,339,566 2,339,566 Kansas 147 70 5,148 757,679 757,679 Kentucky 72 63 10,022 717,932 717,932 Louisiana 81 71 3,907 315,646 315,646 Maine 64 84 1,437 92,660 120,339 Maryland 109 61 4,084 446,444 446,444 Massachusetts 104 63 1,986 206,425 206,425 Michigan 259 84 12,803 3,314,048 3,314,048 Minnesota 130 62 8,375 1,087,648 1,087,648 Mississippi 36 61 2,742 98,210 165,901 Missouri 43 68 6,814 292,863 463,346 Montana 86 60 2,133 182,483 182,483 Nebraska 43 62 8,609 370,024 536,988 Nevada 64 83 1,390 89,641 114,841 New Hampshire 100 76 949 95,164 95,164 New Jersey 81 66 8,452 680,426 680,426 New Mexico 195 84 1,723 336,634 336,634 New York 110 63 17,653 1,940,669 1,940,669 North Carolina 55 63 17,012 942,524 1,079,559 North Dakota 56 69 4,889 274,568 335,356 Ohio 36 85 11,565 414,240 982,311 Oklahoma 209 97 9,002 1,878,895 1,878,895 Oregon 172 83 4,396 755,809 755,809 Pennsylvania 78 73 13,850 1,079,009 1,079,009 Rhode Island 65 74 606 39,109 44,969 South Carolina 43 66 5,009 215,294 330,997 South Dakota 145 69 4,943 717,669 717,669 Tennessee 179 53 13,051 2,341,228 2,341,228 Texas 164 78 17,478 2,868,702 2,868,702 Utah 172 80 3,389 582,674 582,674 Vermont 114 69 848 96,579 96,579 Virginia 63 76 6,325 398,552 481,949 Washington 143 89 14,343 2,054,848 2,054,848 West Virginia 72 64 1,747 125,163 125,163 Wisconsin 43 58 11,287 481,957 652,543 Wyoming 172 118 1,572 270,190 270,190 Puerto Rico 43 65 5,559 238,948 361,979 Other Jurisdictions 43 52 2,134 91,711 110,053 Total, U.S. 364,579 52,120,660 54,264,264*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of recertification would remain constant ther eafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Comm Recert-04; A pplicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 6,607 6,607 0 Alaska 574 574 0 Arizona 13,472 13,472 0 Arkansas 1,937 1,358 579 California 85,657 85,657 0 Colorado 2,296 978 1,318 Connecticut 1,883 1,883 0 Delaware 5,270 5,270 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Florida 24,326 24,326 0 Georgia 4,863 4,015 848 Hawaii 1,675 1,675 0 Idaho 12,712 12,712 0 Illinois 12,902 12,902 0 Indiana 23,759 23,759 0 Iowa 20,556 20,556 0 Kansas 6,657 6,657 0 Kentucky 6,308 6,308 0 Louisiana 2,773 2,773 0 Maine 1,003 814 189 Maryland 3,923 3,923 0 Massachusetts 1,814 1,814 0 Michigan 29,118 29,118 0 Minnesota 9,556 9,556 0 Mississippi 1,324 863 461 Missouri 3,735 2,573 1,162 Montana 1,603 1,603 0 Nebraska 4,389 3,251 1,138 Nevada 959 788 172 New Hampshire 836 836 0 New Jersey 5,978 5,978 0 New Mexico 2,958 2,958 0 New York 17,051 17,051 0 North Carolina 9,215 8,281 934 North Dakota 2,827 2,412 414 Ohio 7,511 3,640 3,872 Oklahoma 16,508 16,508 0 Oregon 6,641 6,641 0 Pennsylvania 9,480 9,480 0 Rhode Island 384 344 40 South Carolina 2,680 1,892 789 South Dakota 6,306 6,306 0 Tennessee 20,570 20,570 0 Texas 25,205 25,205 0 Utah 5,119 5,119 0 Vermont 849 849 0 Virginia 4,070 3,502 568 Washington 18,054 18,054 0 West Virginia 1,100 1,100 0 Wisconsin 5,397 4,235 1,163 Wyoming 2,374 2,374 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Puerto Rico 2,938 2,099 838 Other Jurisdictions 931 806 125

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Comm Recert-04; Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 466,632 452,022 14,609 U.S. (annualized value) 53,110 51,447 1,663 Per applicator incremental cost 0.005

State Costs of Administering R ecertification Exam or Verifying Completion of Recertification Training for General Competency

The options analyzed in this sec tion address the requirements for re certification of applicators in the core competency as they apply to the admi nistration of recertifica tion exam or verifying completion of required trai ning for recertification.

Commercial Applicator
Currently, federal standards regard ing recertification of commercial applicator s require states to have process to assure continued competency. However, there are no standards for the process or frequency of recertification.
States currently have a variety of options for recertification, w ith recertification period ranging from 1-6 years.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that commercial applicators co mpleted the required trai ning. EPA assumes that*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

it takes a state official one hour to conduct ve rification of the traini ng requirements for 50 commercial applicators. Therefor e, whether a jurisdiction recertifi es by exam or training, its cost of administration is the same – one hour of a state official’s time for 50 commercial applicators.

5.1.1.6 Comm Recert-04: Administer Exam or 6-ho ur Training for Commercial Core and Category Recertification: Every 5 Years

Step 1 - Calculate Baseline Costs

 To be certified for general competency, comm ercial applicators must pass core exam and be certified in at least one existing EPA cate gories – Agricultural Plant category, Public Health category, etc

 All jurisdictions recertify their commercial applicators by exam in the baseline.

 All jurisdictions except 4 states (CO, FL, SC , & SD) proctor the rece rtification exam, and therefore, only these 4 states w ould be impacted by Comm Recert-04

 The wage rate for a Jr Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Comm Recert-04; Step 1; Baseline Cost per Applicator to Proctor Co mmercial General Compet ency Recertification Exam or Training

Jurisdictions Wage ($/hour) Recertification cycle Frequency Cost ($)

Alabama 39.44 0.33 0.01 0.26 Alaska 39.44 0.33 0.01 0.26 Arizona 39.44 1.00 0.02 0.79 Arkansas 39.44 0.33 0.01 0.26 California 39.44 0.44 0.01 0.35 Colorado 0.33 0.01 0.00 Connecticut 39.44 0.20 0.00 0.16 Delaware 39.44 1.00 0.02 0.79 Florida 0.62 0.01 0.00 Georgia 39.44 0.20 0.00 0.16 Hawaii 39.44 0.20 0.00 0.16 Idaho 39.44 0.50 0.01 0.39 Illinois 39.44 0.33 0.01 0.26 Indiana 39.44 0.50 0.01 0.39 Iowa 39.44 0.33 0.01 0.26 Kansas 39.44 0.50 0.01 0.39 Kentucky 39.44 0.33 0.01 0.26 Louisiana 39.44 0.33 0.01 0.26 Maine 39.44 0.17 0.00 0.13*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Maryland 39.44 1.00 0.02 0.79 Massachusetts 39.44 0.33 0.01 0.26 Michigan 39.44 0.33 0.01 0.26 Minnesota 39.44 0.48 0.01 0.38 Mississippi 39.44 0.33 0.01 0.26 Missouri 39.44 0.33 0.01 0.26 Montana 39.44 0.25 0.01 0.20 Nebraska 39.44 0.33 0.01 0.26 Nevada 39.44 0.33 0.01 0.26 New Hampshire 39.44 0.20 0.00 0.16 New Jersey 39.44 0.20 0.00 0.16 New Mexico 39.44 0.33 0.01 0.26 New York 39.44 0.33 0.01 0.26 North Carolina 39.44 0.20 0.00 0.16 North Dakota 39.44 0.33 0.01 0.26 Ohio 39.44 0.33 0.01 0.26 Oklahoma 39.44 0.20 0.00 0.16 Oregon 39.44 0.20 0.00 0.16 Pennsylvania 39.44 0.33 0.01 0.26 Rhode Island 39.44 0.20 0.00 0.16 South Carolina 0.20 0.00 0.00 South Dakota 0.50 0.01 0.00 Tennessee 39.44 0.33 0.01 0.26 Texas 39.44 1.00 0.02 0.79 Utah 39.44 0.33 0.01 0.26 Vermont 39.44 0.20 0.00 0.16 Virginia 39.44 0.50 0.01 0.39 Washington 39.44 0.20 0.00 0.16 West Virginia 39.44 0.33 0.01 0.26 Wisconsin 39.44 0.20 0.00 0.16 Wyoming 39.44 0.33 0.01 0.26 Puerto Rico 39.44 0.25 0.01 0.20 Other 39.44 0.25 0.01 0.20

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Comm Recert-04; Step 2; Cost per Applicator to Proctor Commercia l General Competency Recertification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.004 0.16 Total 0.16

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N = number of commercial applicat ors certified in aerial category.

Given the above: RC B = cost r,i, a B x N RC t=3 P = cost r,i, P x N

Values are presented in the table below.

Table: Comm Recert-04; Step 3; Total Annual Baseline and Potential Requi rement Costs for Proctoring General Competency Recertification Exam for Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, P ($) N E

xist Core N E

xist Cate g or y N Sum RC B ($) RC t=3 P ($) Alabama 0.26 0.16 3,772 4,199 7,971 2,096 2,096 Alaska 0.26 0.16 560 759 1,319 347 347 Arizona 0.79 0.16 6,240 14,270 20,510 16,178 16,178 Arkansas 0.26 0.16 3,893 5,394 9,287 2,442 2,442 California 0.35 0.16 32,546 49,759 82,305 28,515 28,515 Colorado 0.00 0.16 3,209 8,606 11,815 0 1,864 Connecticut 0.16 0.16 2,686 4,154 6,840 1,079 1,079*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Delaware 0.79 0.16 1,812 2,908 4,720 3,723 3,723 Florida 0.00 0.16 15,303 39,845 55,148 0 8,700 Georgia 0.16 0.16 9,700 12,842 22,542 3,556 3,556 Hawaii 0.16 0.16 1,151 1,493 2,644 417 417 Idaho 0.39 0.16 3,578 10,772 14,350 5,660 5,660 Illinois 0.26 0.16 12,053 18,094 30,147 7,927 7,927 Indiana 0.39 0.16 8,945 13,516 22,461 8,859 8,859 Iowa 0.26 0.16 11,904 27,215 39,119 10,286 10,286 Kansas 0.39 0.16 5,148 8,895 14,043 5,538 5,538 Kentucky 0.26 0.16 10,022 14,377 24,399 6,415 6,415 Louisiana 0.26 0.16 3,907 6,779 10,686 2,810 2,810 Maine 0.13 0.16 1,437 3,229 4,666 613 736 Maryland 0.79 0.16 4,084 5,578 9,662 7,621 7,621 Massachusetts 0.26 0.16 1,986 2,882 4,867 1,280 1,280 Michigan 0.26 0.16 12,803 28,913 41,717 10,969 10,969 Minnesota 0.38 0.16 8,375 11,840 20,215 7,647 7,647 Mississippi 0.26 0.16 2,742 3,691 6,433 1,691 1,691 Missouri 0.26 0.16 6,814 11,153 17,966 4,724 4,724 Montana 0.20 0.16 2,133 2,830 4,963 979 979 Nebraska 0.26 0.16 8,609 12,213 20,822 5,475 5,475 Nevada 0.26 0.16 1,390 3,063 4,453 1,171 1,171 New Hampshire 0.16 0.16 949 1,845 2,794 441 441 New Jersey 0.16 0.16 8,452 13,192 21,644 3,415 3,415 New Mexico 0.26 0.16 1,723 3,916 5,639 1,483 1,483 New York 0.26 0.16 17,653 25,615 43,268 11,377 11,377 North Carolina 0.16 0.16 17,012 24,848 41,860 6,604 6,604 North Dakota 0.26 0.16 4,889 8,115 13,004 3,419 3,419 Ohio 0.26 0.16 11,565 26,525 38,089 10,015 10,015 Oklahoma 0.16 0.16 9,002 25,016 34,018 5,367 5,367 Oregon 0.16 0.16 4,396 9,737 14,133 2,230 2,230 Pennsylvania 0.26 0.16 13,850 25,116 38,965 10,245 10,245 Rhode Island 0.16 0.16 606 1,137 1,744 275 275 South Carolina 0.00 0.16 5,009 7,826 12,835 0 2,025 South Dakota 0.00 0.16 4,943 8,348 13,291 0 2,097 Tennessee 0.26 0.16 13,051 13,688 26,739 7,031 7,031 Texas 0.79 0.16 17,478 35,133 52,611 41,500 41,500 Utah 0.26 0.16 3,389 7,066 10,455 2,749 2,749 Vermont 0.16 0.16 848 1,404 2,252 355 355 Virginia 0.39 0.16 6,325 12,363 18,688 7,370 7,370*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Washington 0.16 0.16 14,343 35,151 49,494 7,808 7,808 West Virginia 0.26 0.16 1,747 2,592 4,340 1,141 1,141 Wisconsin 0.16 0.16 11,287 14,016 25,303 3,992 3,992 Wyoming 0.26 0.16 1,572 5,630 7,202 1,894 1,894 Puerto Rico 0.20 0.16 5,559 8,477 14,036 2,768 2,768 Other 0.20 0.16 2,134 2,134 4,267 842 842

Total, U.S. 1,012,7 35 280,335 295,143

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third year, all commercial a pplicators with aerial certification must be recertified. EPA assumes that one-third of these app licators will recertify in each year. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-time aer ial applicators in the regions is assumed to be constant over time, existing aerial applicat ors in jurisdictions without a category will only need to obtain certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 PV IC = PV RC P - PV RC B

Table: Comm Recert-04; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 18 18 0 Alaska 3 3 0 Arizona 142 142 0 Arkansas 21 21 0 California 251 251 0 Colorado 13 0 13 Connecticut 9 9 0 Delaware 33 33 0 Florida 59 0 59 Georgia 31 31 0 Hawaii 4 4 0 Idaho 50 50 0 Illinois 70 70 0 Indiana 78 78 0 Iowa 90 90 0 Kansas 49 49 0 Kentucky 56 56 0 Louisiana 25 25 0 Maine 6 5 1 Maryland 67 67 0 Massachusetts 11 11 0 Michigan 96 96 0 Minnesota 67 67 0 Mississippi 15 15 0 Missouri 42 42 0 Montana 9 9 0 Nebraska 48 48 0 Nevada 10 10 0 New Hampshire 4 4 0 New Jersey 30 30 0 New Mexico 13 13 0 New York 100 100 0 North Carolina 58 58 0 North Dakota 30 30 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Ohio 88 88 0 Oklahoma 47 47 0 Oregon 20 20 0 Pennsylvania 90 90 0 Rhode Island 2 2 0 South Carolina 14 0 14 South Dakota 14 0 14 Tennessee 62 62 0 Texas 365 365 0 Utah 24 24 0 Vermont 3 3 0 Virginia 65 65 0 Washington 69 69 0 West Virginia 10 10 0 Wisconsin 35 35 0 Wyoming 17 17 0 Puerto Rico 24 24 0 Other 7 7 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Comm Recert-04; Ju risdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 2,564 2,463 101 U.S. (annualized value) 292 280 11*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5.1.1.7 Comm Recert-05: Exam for core and each category recertification every five years

The costs of this alternative is identical to those of Comm Recert-04.

State Costs of Administering R ecertification Exam or Verifying Completion of Recertification Training for General Competency

The options analyzed in this sec tion address the requirements for re certification of applicators in the core competency as they apply to the admi nistration of recertifica tion exam or verifying completion of required trai ning for recertification.

Commercial Applicator
Currently, federal standards regard ing recertification of commercial applicator s require states to have process to assure continued competency. However, there are no standards for the process or frequency of recertification.
States currently have a variety of options for recertification, w ith recertification period ranging from 1-6 years.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that commercial applicators co mpleted the required trai ning. EPA assumes that it takes a state official one hour to conduct ve rification of the traini ng requirements for 50 commercial applicators. Therefor e, whether a jurisdiction recertifi es by exam or training, its cost of administration is the same – one hour of a state official’s time for 50 commercial applicators.

5.1.1.8 Comm Recert-05: Administer Exam or 6-ho ur Training for Commercial Core and Category Recertification: Every 5 Years

Comm Recert-05 is a less flexib le version of Comm Recert-04, re quiring recertification only by exam. Since both proctoring one hour exam for 50 applicators and verifying training requirements for 50 applicators ta ke one hour of a Jr technician ’s time, the costs of Comm Recert-05 are identical to t hose of Comm Recert-04.

5.1.2 Potential New Categories

Aerial Applications

Step 1 - Calculate Baseline Costs per Existing Co mmercial Applicator, Aerial Applications*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Note that the baseline cost estimate is identical for both options pertaini ng to the recertification of the aerial category (implie d under option Comm Cert-01).

Nineteen jurisdictions and thos e aggregated under ‘Other Jurisd iction’ do not have an aerial certification requirement and thus no recertification requirements. Baseline cost is zero for the following jurisdictions:

Alabama Arizona Arkansas Colorado Delaware Idaho Kansas Missouri Nevada New Mexico North Carolina Oklahoma Oregon Rhode Island South Dakota Tennessee Washington West Virginia Puerto Rico Other Jurisdictions

Ten other jurisdictions require an aerial certification do not have specific category recertification requirements. Baseline cost for recertification in aerial applications is zero in the following jurisdictions:

Kentucky Louisiana Maine Mississippi Nebraska North Dakota Ohio South Carolina Utah Wyoming

The cost estimate for other jurisdictions is the ex pected annual cost per commercial applicator in the state, for recertification. The estimate is calculated as

ݐݏ݋ܿ ைெ஼,௜,௥ ஻ ൌ ݓ COM ∙ ܪ ௥,௜,஼ைெ ஻

∙ freq ௜,௧

where cost r,i,COM B is the baseline cost ( B ) per commercial applicator ( COM ) for the recertification requirement ( r ) in jurisdiction ( i ), w COM is the hourly wage rate (opportunity cost) for a commercial applicator; and freq i,t is the reciprocal of the recertification time period and represents either the fraction of commercial applicators obtaining r ecertification (if, for example, by examination) or the fraction of Cumulative Ed ucation Units (CEUs) an applicator obtains each year to meet the total number required.

Alaska Recertification Requirements:

 12 CEUs of 60 minutes, or 12 hours, for each category of certificati on held (option to retake initial exams for core and each category of certification)

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 3 years ( freq i,t = 0.333)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification – Alaska

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 12 0.333 85.97

California Recertification requirements:

 20 CEUs of 60 minutes, or 20 hours (see Ag Plan t category), with option to retake initial

exam

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 2 years ( freq i,t = 0.50)

Annual Baseline Cost per Commercial Applicator for Aerial Recertification – California

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 20 0.5 214.91

Connecticut Recertification Requirements:

 12 CEUs of 60 minutes, or 12 hours, for each cat egory of certification held (option to retake initial exams for core and each category of certification)

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 5 years ( freq i,t = 0.20)

Annual Baseline Cost per Commercial Applicat or for Recertification – Connecticut

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 12 0.2 51.58

Florida Recertification requirements:

 8 CEUs of 50 minutes, or 6.7 hours (see Ag Plan t category), with option to retake initial

exam

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 4 years for all categories ( freq i,t = 0.25)

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification – Florida

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 6.7 0.25 35.82

Georgia*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Recertification requirements:

 10 CEUs of 60 minutes, or 10 hours (see Ag Pl ant category) (option to retake initial exam)

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 5 years for all categories ( freq i,t = 0.20)

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification – Georgia

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 10 0.20 42.98

Hawaii Recertification requirements:

 25 CEUs of 60 minutes, or 25 hours (see Ag Pl ant category) (option to retake initial exams for specific categories)

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 5 years for all categories ( freq i,t = 0.20)

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification – Hawaii

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 25 0.20 107.46

Illinois Recertification Requirements:

 6 CEUs of 60 minutes, or 6 hours, for each category of certification

 Period is 3 years ( freq i,t = 0.333)

Annual Baseline Cost per Commercial Applicator for Aerial Recertification – Illinois

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 6 0.333 42.98

Indiana Recertification requirements:

 20 CEUs of 60 minutes, or 20 hours (see Ag Pl ant), option to retake initial exams for specific categories

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 2 years for all categories years ( freq i,t = 0.50)

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification – Indiana

Action Wage Time Frequency Cost*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

($) (hours) (per year) ($)
Aerial Recertification 21.49 20 0.50 214.91

Iowa Recertification Requirements:

 6 category-specific CEUs of 120 minutes, or 12 hours, per category of certification with option to retake category exam(s)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification – Iowa

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 12 0.333 85.97

Maryland Recertification requirements:

 8 CEUs of 30 minutes, or 4 hours (see Ag Plant); option to reta ke initial exams for specific categories

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 1 year for all categories ( freq i,t = 1.0)

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification – Maryland

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 4 1 85.97

Massachusetts Recertification Requirements:

 12 category-specific CEUs of 50 minutes, or 10 hours, per category of certification with option to retake category exam(s)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

Annual Baseline Cost per Commercial Applicator for Aerial Recertification – Massachusetts

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 10 0.333 71.64

Michigan Recertification Requirements:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 16 CEUs (8 core & 8 cat) of 60 minutes, or 16 hours, for each category certification held (option to retake initial exams for co re and each category of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification – Michigan

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 16 0.333 114.62

Minnesota Recertification Requirements:

 Single training session of 6 hours, (see Ag Plant) ; option to retake initial exams for core and each category of certification

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification – Minnesota

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 6 0.333 42.98

Montana Recertification Requirements:

 12 category-specific CEUs of 60 minutes, or 12 hours, per category of certification with option to retake category exam(s)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 4 years ( freq i,t = 0.25)

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification –Montana

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 12 0.25 64.47

New Hampshire Recertification Requirements:

 12 category-specific CEUs of 60 minutes, or 12 hours, per category of certification with option to retake category exam(s)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years ( freq i,t = 0.20)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Annual Baseline Cost per Commercial Applic ator for Aerial Recertification – New Hampshire

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 12 0.2 51.58

New Jersey Recertification Requirements:

 24 CEUs (8 core & 16 cat) of 30 minutes, or 12 hours, for each cat egory certification held (option to retake initial exams for core and each categor y of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years ( freq i,t = 0.20)

Annual Baseline Cost per Commercial Applicator for Aerial Recertification – New Jersey

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 12 0.2 51.58

New York Recertification requirements:

 8 CEUs (at least 2 cat, 6 cat or core) of 60 minutes, or 8 hours (see Ag Plant); option to retake initial exam

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years for all categories ( freq i,t = 0.333)

Annual Baseline Cost per Commercial Applicator for Aerial Recertification – New York

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 8 0.333 57.31

Pennsylvania Recertification requirements:

 10 CEUs of 30 minutes, or 5 hours (see Ag Pl ant); option to retake initial exams for specific categories

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years for all categories ( freq i,t = 0.333)

Annual Baseline Cost per Commercial Applicator for Aerial Recertification – Pennsylvania

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 5 0.333 35.82*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Texas Recertification requirements:

 5 CEUs of 60 minutes, or 5 hours (see Ag Pl ant); option to retake initial exam for each category

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 1 year for all categories ( freq i,t = 1.0)

Annual Baseline Cost per Commercial Applic ator for Aerial Recertification – Texas

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 5 1 107.46

Vermont Recertification Requirements:

 16 category-specific CEUs of 60 minutes, or 16 hours, per category of certification; option to retake category exam(s)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years ( freq i,t = 0.20)

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification – Vermont

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 16 0.2 68.77

Virginia Recertification Requirements:

 Single category-specific trai ning session of 180 minutes, or 3 hours, for each category certification held (option to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equiva lent in effort to taking the training

 Period is 2 years ( freq i,t = 0.50)

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification – Virginia

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 6 0.5 64.47

Wisconsin Recertification Requirements:

 Must retake initial exam for each category of certification (no core)

 Each exam takes 1 hour to take plus 5 hours of prep time, or 6 hours, as per general recertification (s ee Appendix A.5.a.i)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Period is 5 years ( freq i,t = 0.20)

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification – Wisconsin

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 21.49 6 0.2 25.79

5.1.2.1 Comm Cert-01: Establish commercial aerial category, Recertification by Exam or 6 hour CEUs/training every three years

Step 2 - Calculate Costs per Existing Aerial Applicator of Potential Requirement Recertification requirement:

 All commercial applicators take 6 core-specific CEUs, plus 6 category-specific CEUs per category of certification held (o ption to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

Table: Comm Cert-01; Recertificat ion every three years; Step 2; Cost of Potential Requirement per Existing Aerial Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 21.49 6 0.333 42.98

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing commercial aerial applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing commercial aerial applicator, pr esented in Step 2.

 The number of existing commerci al aerial applicators (N Xst Com Air ) in each jurisdiction is obtained from the CPARD databa se or extrapolated to othe r states (see Chapter 3.3.1)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of commercial aerial private applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of commercial aerial applicators under the potential requirement.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis, but distributed over different time frame or not delineated between core and category certifi cation. EPA acknowledges that jurisdictions will have to revise their regulations to acco mmodate the potential changes, but that the number of CEUs required of an applicator may not change. Given the above: RC B = cost r,i, a B x N Xst Com Air RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Com Air
Values are presented in the table below.

Comm Cert-01, Recertification of A erial Certification; Step 3; Total Annual Jurisdictional Baseline and Po tential Requirement Costs for Recertification of Commercial Aerial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Com RC B ($) RC P ($)
Alabama 0 43 20 0 860 Alaska 86 43 5 444 444 Arizona 0 43 71 0 3,043 Arkansas 0 43 264 0 11,366 California 215 43 448 96,246 96,246 Colorado 0 43 199 0 8,545 Connecticut 52 43 2 103 103 Delaware 0 43 41 0 1,763 Florida 36 43 318 11,378 13,654 Georgia 43 43 285 12,250 12,250 Hawaii 107 43 8 878 878 Idaho 0 43 216 0 9,285 Illinois 43 43 271 11,641 11,641 Indiana 215 43 267 57,310 57,310 Iowa 86 43 749 64,345 64,345 Kansas 0 43 337 0 14,491 Kentucky 0 43 71 0 3,030 Louisiana 0 43 381 0 16,391 Maine 0 43 27 0 1,168 Maryland 86 43 46 3,954 3,954 Massachusetts 72 43 16 1,134 1,134 Michigan 115 43 80 9,189 9,189 Minnesota 43 43 383 16,441 16,441 Mississippi 0 43 238 0 10,237 Missouri 0 43 237 0 10,186 Montana 64 43 13 827 827*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Nebraska 0 43 525 0 22,544 Nevada 0 43 80 0 3,428 New Hampshire 52 43 15 794 794 New Jersey 52 43 81 4,178 4,178 New Mexico 0 43 6 0 256 New York 57 43 50 2,885 2,885 North Carolina 0 43 170 0 7,288 North Dakota 0 43 357 0 15,323 Ohio 0 43 92 0 3,947 Oklahoma 0 43 408 0 17,534 Oregon 0 43 210 0 9,018 Pennsylvania 36 43 71 2,531 3,037 Rhode Island 0 43 15 0 633 South Carolina 0 43 85 0 3,668 South Dakota 0 43 389 0 16,711 Tennessee 0 43 86 0 3,697 Texas 107 43 533 57,275 57,275 Utah 0 43 48 0 2,056 Vermont 69 43 8 562 562 Virginia 64 43 84 5,405 5,405 Washington 0 43 459 0 19,743 West Virginia 0 43 31 0 1,337 Wisconsin 26 43 68 1,741 2,901 Wyoming 0 43 43 0 1,848 Puerto Rico 0 43 46 0 1,985 Other Jurisdictions 0 43 0 0 0 Total, U.S. 8,950 361,511 586,834

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of recertification would remain constant ther eafter. The PV of costs under the proposal, at a 3% discount rate, is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Comm Cert-01, Recertification of Aerial Certification; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 5 0 5 Alaska 4 4 0 Arizona 18 0 18 Arkansas 67 0 67 California 846 846 0 Colorado 50 0 50 Connecticut 1 1 0 Delaware 10 0 10 Florida 113 100 13 Georgia 108 108 0 Hawaii 8 8 0 Idaho 55 0 55 Illinois 102 102 0 Indiana 504 504 0 Iowa 565 565 0 Kansas 85 0 85 Kentucky 18 0 18 Louisiana 96 0 96 Maine 7 0 7 Maryland 35 35 0 Massachusetts 10 10 0 Michigan 81 81 0 Minnesota 144 144 0 Mississippi 60 0 60 Missouri 60 0 60*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Montana 7 7 0 Nebraska 132 0 132 Nevada 20 0 20 New Hampshire 7 7 0 New Jersey 37 37 0 New Mexico 2 0 2 New York 25 25 0 North Carolina 43 0 43 North Dakota 90 0 90 Ohio 23 0 23 Oklahoma 103 0 103 Oregon 53 0 53 Pennsylvania 25 22 3 Rhode Island 4 0 4 South Carolina 22 0 22 South Dakota 98 0 98 Tennessee 22 0 22 Texas 503 503 0 Utah 12 0 12 Vermont 5 5 0 Virginia 47 47 0 Washington 116 0 116 West Virginia 8 0 8 Wisconsin 22 15 7 Wyoming 11 0 11 Puerto Rico 12 0 12 Other Jurisdictions 0 0 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Comm Cert-01, Recertification of Aerial Certification; Step 6;*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 4,500 3,176 1,323 U.S. (annualized value) 512 362 151 Per applicator incremental cost 0.017

State Costs of Administering Recertification Exam or Verifying Completion of Training for Application Method-Spec ific Categories

The options analyzed in this sec tion address the requirements for re certification of applicators in the application method-specific categories as they apply to the administ ration of recertification exam or verifying completion of requ ired training for recertification.

Commercial Applicator
Although there are currently no federal commercial applicator certification categories based on application method, some states do require certification in one or more of the application method-specific categories among those consider ed in the potential requirements. For commercial certification categories considered as potential requirements (aerial, chemigation, general fumigation, soil fumigation, and non-soil fu migation), there are di fferent jurisdictions that currently require each. Jurisdictions that do not require a partic ular category have zero baseline cost for certification or recertification fo r that category. Most of the jurisdictions that require a given category in the baseline also require recertification. EPA considers these recertification requirement s in compliance with the proposed requirements.
For commercial applicators, the jurisdictions th at have one or more of the application methodspecific categories require rece rtification by passing a writte n exam or by completing the required training. The proposed rule also requires recertification in thes e categories by passing a written exam or by completi ng the required training.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that commercial applicators co mpleted the required trai ning. EPA assumes that it takes a state official one hour to conduct ve rification of the traini ng requirements for 50 commercial applicators. Therefor e, whether a jurisdiction recertifi es by exam or training, its cost of administration is the same – one hour of a state official’s time for 50 commercial applicators.

5.1.2.2 Comm Cert-01: Administer New Commercial Aerial Category Exam or Training: Every 3 Years

Step 1 - Calculate Baseline Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Jurisdictions that Require Recertification in Aerial Category in the Baseline

Thirty two (32) states require ae rial recertification in the baseline. However, of these states, Florida and South Carolina do not proctor thei r recertification exam and thus there is no proctoring cost for these two states in the baseline.

Assumptions:

 Currently, these states except Florida and S outh Carolina are in compliance with Comm Cert-01, proctoring the recertific ation exam in the baseline

 It takes a Jr. Technician 1 hour to proctor a group of 50 examinees

 Proctoring of recertification exam is done ev ery 3 years for the 10-year horizon for all certified applicators

 The wage rate for a Junior Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Comm Cert-01; Step 1; Baseline Cost per Applicator to Proctor Commercial Aerial Category Recertification Exam; States Currently Requiring Proctoring of Aerial Category Recertification Exam

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.007 0.26 Total 0.26

Jurisdictions that do Not Require Recertificat ion in Aerial Category in the Baseline

The 18 states (AL, AZ, AR, CO, DE, ID, KS, MO, NV, NM, NC, OK, OR , RI, SD, TN, WA, & WV), Puerto Rico, and Other do not require aerial recertification in the baseline.

Table: Comm Cert-01; Step 1; Baseline Cost per Applicator to Proctor Commercial Aerial Category Recertification Exam; Jurisdictions Currently Not Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($)
None

– no category certification requirement 39.44 0 0 0.00

Total 0.00

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm Cert-01; Step 2; Cost per Applicator to Proctor Commerc ial Aerial Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.007 0.26 Total 0.26

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N = number of commercial applicat ors certified in aerial category.

Given the above: RC B = cost r,i, a B x N RC t=3 P = cost r,i, P x N

Values are presented in the table below.

Table: Comm Cert-01; Step 3; Total Annual Baseline and Potential Requireme nt Costs for Proctoring Aerial Category Recertification Exam for Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, P ($) N RC B ($) RC t=3 P ($) Alabama 0 0.26 22.4 0.0 5.9 Alaska 0.26 0.26 5.8 1.5 1.5 Arizona 0 0.26 79.3 0.0 20.8 Arkansas 0 0.26 296.2 0.0 77.9 California 0.26 0.26 501.6 131.9 131.9 Colorado 0 0.26 222.7 0.0 58.5 Connecticut 0.26 0.26 2.2 0.6 0.6 Delaware 0 0.26 45.9 0.0 12.1 Florida 0 0.26 355.8 0.0 93.5 Georgia 0.26 0.26 319.2 83.9 83.9 Hawaii 0.26 0.26 9.1 2.4 2.4 Idaho 0 0.26 241.9 0.0 63.6*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Illinois 0.26 0.26 303.3 79.8 79.8 Indiana 0.26 0.26 298.7 78.5 78.5 Iowa 0.26 0.26 838.3 220.4 220.4 Kansas 0 0.26 377.6 0.0 99.3 Kentucky 0.26 0.26 79.0 20.8 20.8 Louisiana 0.26 0.26 427.1 112.3 112.3 Maine 0.26 0.26 30.4 8.0 8.0 Maryland 0.26 0.26 51.5 13.5 13.5 Massachusetts 0.26 0.26 17.7 4.7 4.7 Michigan 0.26 0.26 89.8 23.6 23.6 Minnesota 0.26 0.26 428.4 112.6 112.6 Mississippi 0.26 0.26 266.7 70.1 70.1 Missouri 0 0.26 265.4 0.0 69.8 Montana 0.26 0.26 14.4 3.8 3.8 Nebraska 0.26 0.26 587.4 154.5 154.5 Nevada 0 0.26 89.3 0.0 23.5 New Hampshire 0.26 0.26 17.2 4.5 4.5 New Jersey 0.26 0.26 90.7 23.9 23.9 New Mexico 0 0.26 6.7 0.0 1.8 New York 0.26 0.26 56.4 14.8 14.8 North Carolina 0 0.26 189.9 0.0 49.9 North Dakota 0.26 0.26 399.3 105.0 105.0 Ohio 0.26 0.26 102.9 27.0 27.0 Oklahoma 0 0.26 456.9 0.0 120.1 Oregon 0 0.26 235.0 0.0 61.8 Pennsylvania 0.26 0.26 79.1 20.8 20.8 Rhode Island 0 0.26 16.5 0.0 4.3 South Carolina 0 0.26 95.6 0.0 25.1 South Dakota 0 0.26 435.4 0.0 114.5 Tennessee 0 0.26 96.3 0.0 25.3 Texas 0.26 0.26 597.0 157.0 157.0 Utah 0.26 0.26 53.6 14.1 14.1 Vermont 0.26 0.26 9.1 2.4 2.4 Virginia 0.26 0.26 93.9 24.7 24.7 Washington 0 0.26 514.4 0.0 135.3 West Virginia 0 0.26 34.9 0.0 9.2 Wisconsin 0.26 0.26 75.6 19.9 19.9 Wyoming 0.26 0.26 48.2 12.7 12.7 Puerto Rico 0 0.26 52.0 0.0 14.0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Other 0 0.26 0.0 0.0 0.0 Total, U.S. 10,024 1,550 2,636

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third year, all commercial a pplicators with aerial certification must be recertified. EPA assumes that one-third of these app licators will recertify in each year. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-time aer ial applicators in the regions is assumed to be constant over time, existing aerial applicat ors in jurisdictions without a category will only need to obtain certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Cert-0 1; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 0.04 0.00 0.04*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Alaska 0.01 0.01 0.00 Arizona 0.14 0.00 0.14 Arkansas 0.53 0.00 0.53 California 1.16 1.16 0.00 Colorado 0.40 0.00 0.40 Connecticut 0.01 0.01 0.00 Delaware 0.08 0.00 0.08 Florida 0.64 0.00 0.64 Georgia 0.74 0.74 0.00 Hawaii 0.02 0.02 0.00 Idaho 0.43 0.00 0.43 Illinois 0.70 0.70 0.00 Indiana 0.69 0.69 0.00 Iowa 1.94 1.94 0.00 Kansas 0.68 0.00 0.68 Kentucky 0.18 0.18 0.00 Louisiana 0.99 0.99 0.00 Maine 0.07 0.07 0.00 Maryland 0.12 0.12 0.00 Massachusetts 0.04 0.04 0.00 Michigan 0.21 0.21 0.00 Minnesota 0.99 0.99 0.00 Mississippi 0.62 0.62 0.00 Missouri 0.48 0.00 0.48 Montana 0.03 0.03 0.00 Nebraska 1.36 1.36 0.00 Nevada 0.16 0.00 0.16 New Hampshire 0.04 0.04 0.00 New Jersey 0.21 0.21 0.00 New Mexico 0.01 0.00 0.01 New York 0.13 0.13 0.00 North Carolina 0.34 0.00 0.34 North Dakota 0.92 0.92 0.00 Ohio 0.24 0.24 0.00 Oklahoma 0.82 0.00 0.82 Oregon 0.42 0.00 0.42 Pennsylvania 0.18 0.18 0.00 Rhode Island 0.03 0.00 0.03 South Carolina 0.17 0.00 0.17*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

South Dakota 0.78 0.00 0.78 Tennessee 0.17 0.00 0.17 Texas 1.38 1.38 0.00 Utah 0.12 0.12 0.00 Vermont 0.02 0.02 0.00 Virginia 0.22 0.22 0.00 Washington 0.92 0.00 0.92 West Virginia 0.06 0.00 0.06 Wisconsin 0.17 0.17 0.00 Wyoming 0.11 0.11 0.00 Puerto Rico 0.09 0.00 0.09 Other 0.00 0.00 0.00

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Comm Cert-01; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 21 14 7 U.S. (annualized value) 2.39 1.55 0.84

********************************************************************

5.1.2.3 Comm Cert-01: Establish commercial aerial category, Recertification by Exam or 6 hour CEUs/training every five years

Step 2 - Calculate Costs per Existing Aerial Applicator of Potential Requirement Recertification requirement:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 All commercial applicators take 6 core-specific CEUs, plus 6 category-specific CEUs per category of certification held (o ption to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years ( freq i,t = 0.20)

Table: Comm Cert-01; Recertificatio n every five years; Step 2; Cost of Potential Requirement per Existing Aerial Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 21.49 6 0.20 25.79

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing commercial aerial applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing commercial aerial applicator, pr esented in Step 2.

 The number of existing commerci al aerial applicators (N Xst Com Air ) in each jurisdiction is obtained from the CPARD databa se or extrapolated to othe r states (see Chapter 3.3.1)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of co mmercial aerial applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of commercial aerial applicators under the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis, but distributed over different time frame or not delineated between core and category certifi cation. EPA acknowledges that jurisdictions will have to revise their regulations to acco mmodate the potential changes, but that the number of CEUs required of an applicator may not change. Given the above: RC B = cost r,i, a B x N Xst Com Air RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Com Air
Values are presented in the table below.

Comm Cert-01, Recertification of A erial Certification; Step 3;*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Total Annual Jurisdictional Baseline and Po tential Requirement Costs for Recertification of Commercial Aerial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Com RC B ($) RC P ($)
Alabama 0 26 20 0 516 Alaska 86 26 5 444 444 Arizona 0 26 71 0 1,826 Arkansas 0 26 264 0 6,819 California 215 26 448 96,246 96,246 Colorado 0 26 199 0 5,127 Connecticut 52 26 2 103 103 Delaware 0 26 41 0 1,058 Florida 36 26 318 11,378 11,378 Georgia 43 26 285 12,250 12,250 Hawaii 107 26 8 878 878 Idaho 0 26 216 0 5,571 Illinois 43 26 271 11,641 11,641 Indiana 215 26 267 57,310 57,310 Iowa 86 26 749 64,345 64,345 Kansas 0 26 337 0 8,695 Kentucky 0 26 71 0 1,818 Louisiana 0 26 381 0 9,834 Maine 0 26 27 0 701 Maryland 86 26 46 3,954 3,954 Massachusetts 72 26 16 1,134 1,134 Michigan 115 26 80 9,189 9,189 Minnesota 43 26 383 16,441 16,441 Mississippi 0 26 238 0 6,142 Missouri 0 26 237 0 6,111 Montana 64 26 13 827 827 Nebraska 0 26 525 0 13,527 Nevada 0 26 80 0 2,057 New Hampshire 52 26 15 794 794 New Jersey 52 26 81 4,178 4,178 New Mexico 0 26 6 0 154 New York 57 26 50 2,885 2,885 North Carolina 0 26 170 0 4,373 North Dakota 0 26 357 0 9,194 Ohio 0 26 92 0 2,368 Oklahoma 0 26 408 0 10,520 Oregon 0 26 210 0 5,411 Pennsylvania 36 26 71 2,531 2,531 Rhode Island 0 26 15 0 380 South Carolina 0 26 85 0 2,201 South Dakota 0 26 389 0 10,027*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Tennessee 0 26 86 0 2,218 Texas 107 26 533 57,275 57,275 Utah 0 26 48 0 1,234 Vermont 69 26 8 562 562 Virginia 64 26 84 5,405 5,405 Washington 0 26 459 0 11,846 West Virginia 0 26 31 0 802 Wisconsin 26 26 68 1,741 1,741 Wyoming 0 26 43 0 1,109 Puerto Rico 0 26 46 0 1,191 Other Jurisdictions 0 26 0 0 0 Total, U.S. 8,950 361,511 494,339

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of recertification would remain constant ther eafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Comm Cert-01, Recertification of Aerial Certification; Steps 4 & 5*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 3 0 3 Alaska 4 4 0 Arizona 11 0 11 Arkansas 40 0 40 California 846 846 0 Colorado 30 0 30 Connecticut 1 1 0 Delaware 6 0 6 Florida 100 100 0 Georgia 108 108 0 Hawaii 8 8 0 Idaho 33 0 33 Illinois 102 102 0 Indiana 504 504 0 Iowa 565 565 0 Kansas 51 0 51 Kentucky 11 0 11 Louisiana 58 0 58 Maine 4 0 4 Maryland 35 35 0 Massachusetts 10 10 0 Michigan 81 81 0 Minnesota 144 144 0 Mississippi 36 0 36 Missouri 36 0 36 Montana 7 7 0 Nebraska 79 0 79 Nevada 12 0 12 New Hampshire 7 7 0 New Jersey 37 37 0 New Mexico 1 0 1 New York 25 25 0 North Carolina 26 0 26 North Dakota 54 0 54 Ohio 14 0 14 Oklahoma 62 0 62 Oregon 32 0 32 Pennsylvania 22 22 0 Rhode Island 2 0 2*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

South Carolina 13 0 13 South Dakota 59 0 59 Tennessee 13 0 13 Texas 503 503 0 Utah 7 0 7 Vermont 5 5 0 Virginia 47 47 0 Washington 70 0 70 West Virginia 5 0 5 Wisconsin 15 15 0 Wyoming 7 0 7 Puerto Rico 7 0 7 Other Jurisdictions 0 0 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Comm Cert-01, Recertification of Aerial Certification; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 3,956 3,176 780 U.S. (annualized value) 450 362 89 Per applicator incremental cost 0.010

5.1.2.4 Comm Cert-01: Administer New Commercial Aerial Category: Every 5 Years
Step 1 - Calculate Baseline Costs

Jurisdictions that Require Recertification in Aerial Category in the Baseline*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Thirty two (32) states require ae rial recertification in the baseline. However, of these states, Florida and South Carolina do not proctor thei r recertification exam and thus there is no proctoring cost for these two states in the baseline.

Assumptions:

 Currently, these states except Florida and S outh Carolina are in compliance with Comm Cert-01, proctoring the recertific ation exam in the baseline

 It takes a Jr. Technician 1 hour to proctor a group of 50 examinees

 Proctoring of recertification exam is done ev ery 3 years for the 10-year horizon for all certified applicators

 The wage rate for a Junior Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Comm Cert-01; Step 1; Baseline Cost per Applicator to Proctor Commercial Aerial Category Recertification Exam; States Currently Requiring Proctoring of Aerial Category Recertification Exam

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.007 0.26 Total 0.26

Jurisdictions that do Not Require Recertificat ion in Aerial Category in the Baseline

The 18 states (AL, AZ, AR, CO, DE, ID, KS, MO, NV, NM, NC, OK, OR , RI, SD, TN, WA, & WV), Puerto Rico, and Other do not require aerial recertification in the baseline.

Table: Comm Cert-01; Step 1; Baseline Cost per Applicator to Proctor Commercial Aerial Category Recertification Exam; Jurisdictions Currently Not Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($)
None

– no category certification requirement 39.44 0 0 0.00

Total 0.00

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Comm Cert-01; Step 2; Cost per Applicator to Proctor Commerc ial Aerial Category Certification Exam;*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.004 0.16 Total 0.16

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N = number of commercial applicat ors certified in aerial category.

Given the above: RC B = cost r,i, a B x N RC t=3 P = cost r,i, P x N

Values are presented in the table below.

Table: Comm Cert-01; Step 3; Total Annual Baseline and Potential Requireme nt Costs for Proctoring Aerial Category Recertification Exam for Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, P ($) N RC B ($) RC t=3 P ($) Alabama 0 0.16 22.4 0.0 3.5 Alaska 0.26 0.16 5.8 1.5 1.5 Arizona 0 0.16 79.3 0.0 12.5 Arkansas 0 0.16 296.2 0.0 46.7 California 0.26 0.16 501.6 131.9 131.9 Colorado 0 0.16 222.7 0.0 35.1 Connecticut 0.26 0.16 2.2 0.6 0.6 Delaware 0 0.16 45.9 0.0 7.2 Florida 0 0.16 355.8 0.0 56.1 Georgia 0.26 0.16 319.2 83.9 83.9 Hawaii 0.26 0.16 9.1 2.4 2.4 Idaho 0 0.16 241.9 0.0 38.2 Illinois 0.26 0.16 303.3 79.8 79.8*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Indiana 0.26 0.16 298.7 78.5 78.5 Iowa 0.26 0.16 838.3 220.4 220.4 Kansas 0 0.16 377.6 0.0 59.6 Kentucky 0.26 0.16 79.0 20.8 20.8 Louisiana 0.26 0.16 427.1 112.3 112.3 Maine 0.26 0.16 30.4 8.0 8.0 Maryland 0.26 0.16 51.5 13.5 13.5 Massachusetts 0.26 0.16 17.7 4.7 4.7 Michigan 0.26 0.16 89.8 23.6 23.6 Minnesota 0.26 0.16 428.4 112.6 112.6 Mississippi 0.26 0.16 266.7 70.1 70.1 Missouri 0 0.16 265.4 0.0 41.9 Montana 0.26 0.16 14.4 3.8 3.8 Nebraska 0.26 0.16 587.4 154.5 154.5 Nevada 0 0.16 89.3 0.0 14.1 New Hampshire 0.26 0.16 17.2 4.5 4.5 New Jersey 0.26 0.16 90.7 23.9 23.9 New Mexico 0 0.16 6.7 0.0 1.1 New York 0.26 0.16 56.4 14.8 14.8 North Carolina 0 0.16 189.9 0.0 30.0 North Dakota 0.26 0.16 399.3 105.0 105.0 Ohio 0.26 0.16 102.9 27.0 27.0 Oklahoma 0 0.16 456.9 0.0 72.1 Oregon 0 0.16 235.0 0.0 37.1 Pennsylvania 0.26 0.16 79.1 20.8 20.8 Rhode Island 0 0.16 16.5 0.0 2.6 South Carolina 0 0.16 95.6 0.0 15.1 South Dakota 0 0.16 435.4 0.0 68.7 Tennessee 0 0.16 96.3 0.0 15.2 Texas 0.26 0.16 597.0 157.0 157.0 Utah 0.26 0.16 53.6 14.1 14.1 Vermont 0.26 0.16 9.1 2.4 2.4 Virginia 0.26 0.16 93.9 24.7 24.7 Washington 0 0.16 514.4 0.0 81.2 West Virginia 0 0.16 34.9 0.0 5.5 Wisconsin 0.26 0.16 75.6 19.9 19.9 Wyoming 0.26 0.16 48.2 12.7 12.7 Puerto Rico 0 0.16 52.0 0.0 8.2 Other 0 0.16 0.0 0.0 0.0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Total, U.S. 10,024 1,550 2,201

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third year, all commercial a pplicators with aerial certification must be recertified. EPA assumes that one-third of these app licators will recertify in each year. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-time aer ial applicators in the regions is assumed to be constant over time, existing aerial applicat ors in jurisdictions without a category will only need to obtain certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Cert-0 1; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 0.02 0.00 0.02*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Alaska 0.01 0.01 0.00 Arizona 0.09 0.00 0.09 Arkansas 0.32 0.00 0.32 California 1.16 1.16 0.00 Colorado 0.24 0.00 0.24 Connecticut 0.01 0.01 0.00 Delaware 0.05 0.00 0.05 Florida 0.38 0.00 0.38 Georgia 0.74 0.74 0.00 Hawaii 0.02 0.02 0.00 Idaho 0.26 0.00 0.26 Illinois 0.70 0.70 0.00 Indiana 0.69 0.69 0.00 Iowa 1.94 1.94 0.00 Kansas 0.41 0.00 0.41 Kentucky 0.18 0.18 0.00 Louisiana 0.99 0.987 0.00 Maine 0.07 0.07 0.00 Maryland 0.12 0.12 0.00 Massachusetts 0.04 0.04 0.00 Michigan 0.21 0.21 0.00 Minnesota 0.99 0.99 0.00 Mississippi 0.62 0.62 0.00 Missouri 0.29 0.00 0.29 Montana 0.03 0.03 0.00 Nebraska 1.36 1.36 0.00 Nevada 0.10 0.00 0.10 New Hampshire 0.04 0.04 0.00 New Jersey 0.21 0.21 0.00 New Mexico 0.01 0.00 0.01 New York 0.13 0.13 0.00 North Carolina 0.20 0.00 0.20 North Dakota 0.92 0.92 0.00 Ohio 0.24 0.24 0.00 Oklahoma 0.49 0.00 0.49 Oregon 0.25 0.00 0.25 Pennsylvania 0.18 0.18 0.00 Rhode Island 0.02 0.00 0.02 South Carolina 0.10 0.00 0.10*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

South Dakota 0.47 0.00 0.47 Tennessee 0.10 0.00 0.10 Texas 1.38 1.38 0.00 Utah 0.12 0.12 0.00 Vermont 0.02 0.02 0.00 Virginia 0.22 0.22 0.00 Washington 0.55 0.00 0.55 West Virginia 0.04 0.00 0.04 Wisconsin 0.17 0.17 0.00 Wyoming 0.11 0.11 0.00 Puerto Rico 0.06 0.00 0.06 Other 0.00 0.00 0.00

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Comm Cert-01; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 18 14 4 U.S. (annualized value) 2.06 1.55 0.51

Chemigation Applications

Step 1 - Calculate Baseline Costs per Existin g Commercial Applicator, Chemigation

Note that the baseline cost estimate is identical for both options pertaini ng to the recertification of the chemigation category (i mplied under option Comm Cert-02).*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Forty-four jurisdictions and those aggregated under ‘Other Jurisdiction’ do not have a chemigation certification requirement and thus no r ecertification requirements. Baseline cost is zero for the following jurisdictions:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Utah Vermont Washington West Virginia Puerto Rico Other Jurisdictions

Three other jurisdictions require a chemigation certification but do not have specific category recertification requirements. Baseline cost fo r recertification in chem igation is zero in the following jurisdictions:

Maine Nevada Wyoming

The cost estimate for other jurisdictions is the ex pected annual cost per commercial applicator in the state, for recertification. The estimate is calculated as

ݐݏ݋ܿ ைெ஼,௜,௥ ஻ ൌ ݓ COM ∙ ܪ ௥,௜,஼ைெ ஻

∙ freq ௜,௧

where cost r,i,COM B is the baseline cost ( B ) per commercial applicator ( COM ) for the recertification requirement ( r ) in jurisdiction ( i ), w COM is the hourly wage rate (opportunity cost) for a commercial applicator; and freq i,t is the reciprocal of the recertification time period and represents either the fraction of commercial applicators obtaining r ecertification (if, for example, by examination) or the fraction of Cumulative Ed ucation Units (CEUs) an applicator obtains each year to meet the total number required.

Hawaii Recertification requirements:

 25 CEUs of 60 minutes, or 25 hours (see Ag Pl ant category) (option to retake initial exams for specific categories; EPA assumes the two options are equivalent in terms of effort)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Period is 5 years for all categories ( freq i,t = 0.20)

Annual Baseline Cost per Commercial Applic ator for Chemigation Recertification – Hawaii

Action Wage ($) Time (hours) Frequency (per year) Cost ($) Chemigation Recertification 21.49 25 0.20 107.46

Texas Recertification requirements:

 5 CEUs of 60 minutes, or 5 hours (see Ag Pl ant); option to retake initial exam for each category; EPA assumes the option of exam is equivalent in effort to obtaining CEUs

 Period is 1 year for all categories ( freq i,t = 1.0)

Annual Baseline Cost per Commercial Applicat or for Chemigation Recertification – Texas

Action Wage ($) Time (hours) Frequency (per year) Cost ($) Chemigation Recertification 21.49 5 1 107.46

Virginia Recertification Requirements:

 Single category-specific trai ning session of 180 minutes, or 3 hours, for each category certification held (option to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equiva lent in effort to taking the training

 Period is 2 years ( freq i,t = 0.50)

Annual Baseline Cost per Commercial Applic ator for Chemigation Recertification – Virginia

Action Wage ($) Time (hours) Frequency (per year) Cost ($) Chemigation Recertification 21.49 6 0.5 64.47

Wisconsin Recertification Requirements:

 Must retake initial exam for each category of certification (no core)

 Each exam takes 1 hour to take plus 5 hours of prep time, or 6 hours, as per general recertification (s ee Appendix A.5.a.i)

 Period is 5 years ( freq i,t = 0.20)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Annual Baseline Cost per Commercial Applicator for Chemigation Recertification – Wisconsin

Action Wage ($) Time (hours) Frequency (per year) Cost ($) Chemigation Recertification 21.49 6 0.2 25.79

5.1.2.5 Comm Cert-02: Establish commercial chemigat ion category, Recertification by Exam or 6 hour CEUs/training every three years

Step 2 - Calculate Costs per Existing Chemigatio n Applicator of Potential Requirement Recertification requirement:

 All commercial applicators take 6 core-specific CEUs, plus 6 category-specific CEUs per category of certification held (o ption to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

Table: Comm Cert-02; Recertificat ion every three years; Step 2; Cost of Potential Requirement per Ex isting Chemigation Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 21.49 6 0.333 42.98

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing chemigation applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing chemig ation applicator, presented in Step 2.

 The number of existing commercial chemigation applicators (N Xst Com Air ) in each jurisdiction is obtained from the CPARD databa se or extrapolated to other states (see Chapter 3.3.1)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of commercial chemigation applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of commercial ch emigation applicators under the potential requirement.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis, but distributed over different time frame or not delineated between core and category certifi cation. EPA acknowledges that jurisdictions will have to revise their regulations to acco mmodate the potential changes, but that the number of CEUs required of an applicator may not change. Given the above: RC B = cost r,i, a B x N Xst Com Chem RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Com Chem
Values are presented in the table below.

Comm Cert-02, Recertification of Chem igation Certification; Step 3; Total Annual Jurisdictional Baseline and Po tential Requirement Costs for Recertification of Commercial Chemigation Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Com Chem RC B ($) RC P ($)
Alabama 0 43 21 0 922 Alaska 0 43 0 0 0 Arizona 0 43 9 0 405 Arkansas 0 43 17 0 750 California 0 43 57 0 2,470 Colorado 0 43 15 0 634 Connecticut 0 43 0 0 0 Delaware 0 43 22 0 933 Florida 0 43 30 0 1,280 Georgia 0 43 31 0 1,334 Hawaii 107 43 6 681 681 Idaho 0 43 29 0 1,236 Illinois 0 43 6 0 261 Indiana 0 43 6 0 243 Iowa 0 43 19 0 797 Kansas 0 43 8 0 355 Kentucky 0 43 10 0 410 Louisiana 0 43 12 0 527 Maine 0 43 0 0 0 Maryland 0 43 20 0 854 Massachusetts 0 43 8 0 357 Michigan 0 43 9 0 390 Minnesota 0 43 4 0 165 Mississippi 0 43 18 0 764 Missouri 0 43 7 0 319 Montana 0 43 10 0 437*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Nebraska 0 43 6 0 263 Nevada 0 43 8 0 337 New Hampshire 0 43 0 0 0 New Jersey 0 43 22 0 930 New Mexico 0 43 12 0 507 New York 0 43 12 0 529 North Carolina 0 43 33 0 1,404 North Dakota 0 43 15 0 664 Ohio 0 43 17 0 737 Oklahoma 0 43 31 0 1,320 Oregon 0 43 24 0 1,012 Pennsylvania 0 43 10 0 419 Rhode Island 0 43 0 0 0 South Carolina 0 43 22 0 955 South Dakota 0 43 13 0 543 Tennessee 0 43 24 0 1,033 Texas 107 43 28 2,973 2,973 Utah 0 43 12 0 517 Vermont 0 43 0 0 0 Virginia 64 43 37 2,396 2,396 Washington 0 43 71 0 3,056 West Virginia 0 43 9 0 369 Wisconsin 26 43 4 103 172 Wyoming 0 43 30 0 1,268 Puerto Rico 0 43 5 0 197 Other Jurisdictions 0 43 0 0 0 Total, U.S. 817 6,153 38,124

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of recertification would remain constant ther eafter. The PV of costs under the proposal, at a 3% discount rate, is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Comm Cert-02, Recertification of Chemigation Certification; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 5 0 5 Alaska 0 0 0 Arizona 2 0 2 Arkansas 4 0 4 California 15 0 15 Colorado 4 0 4 Connecticut 0 0 0 Delaware 5 0 5 Florida 8 0 8 Georgia 8 0 8 Hawaii 6 6 0 Idaho 7 0 7 Illinois 2 0 2 Indiana 1 0 1 Iowa 5 0 5 Kansas 2 0 2 Kentucky 2 0 2 Louisiana 3 0 3 Maine 0 0 0 Maryland 5 0 5 Massachusetts 2 0 2 Michigan 2 0 2 Minnesota 1 0 1 Mississippi 4 0 4 Missouri 2 0 2*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Montana 3 0 3 Nebraska 2 0 2 Nevada 2 0 2 New Hampshire 0 0 0 New Jersey 5 0 5 New Mexico 3 0 3 New York 3 0 3 North Carolina 8 0 8 North Dakota 4 0 4 Ohio 4 0 4 Oklahoma 8 0 8 Oregon 6 0 6 Pennsylvania 2 0 2 Rhode Island 0 0 0 South Carolina 6 0 6 South Dakota 3 0 3 Tennessee 6 0 6 Texas 26 26 0 Utah 3 0 3 Vermont 0 0 0 Virginia 21 21 0 Washington 18 0 18 West Virginia 2 0 2 Wisconsin 1 1 0 Wyoming 7 0 7 Puerto Rico 1 0 1 Other Jurisdictions 0 0 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Comm Cert-02, Recertification of Chemigation Certification; Step 6;*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 242 54 188 U.S. (annualized value) 28 6 21 Per applicator incremental cost 0.026

State Costs of Administering Recertification Exam or Verifying Completion of Training for Application Method-Spec ific Categories

The options analyzed in this sec tion address the requirements for re certification of applicators in the application method-specific categories as they apply to the administ ration of recertification exam or verifying completion of requ ired training for recertification.

Commercial Applicator
Although there are currently no federal commercial applicator certification categories based on application method, some states do require certification in one or more of the application method-specific categories among those consider ed in the potential requirements. For commercial certification categories considered as potential requirements (aerial, chemigation, general fumigation, soil fumigation, and non-soil fu migation), there are di fferent jurisdictions that currently require each. Jurisdictions that do not require a partic ular category have zero baseline cost for certification or recertification fo r that category. Most of the jurisdictions that require a given category in the baseline also require recertification. EPA considers these recertification requirement s in compliance with the proposed requirements.
For commercial applicators, the jurisdictions th at have one or more of the application methodspecific categories require rece rtification by passing a writte n exam or by completing the required training. The proposed rule also requires recertification in thes e categories by passing a written exam or by completi ng the required training.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that commercial applicators co mpleted the required trai ning. EPA assumes that it takes a state official one hour to conduct ve rification of the traini ng requirements for 50 commercial applicators. Therefor e, whether a jurisdiction recertifi es by exam or training, its cost of administration is the same – one hour of a state official’s time for 50 commercial applicators.

5.1.2.6 Comm cert-02: Administer New Commercial Chemigation Category Exam or Training: Every 3 Years

Step 1 - Calculate Baseline Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Jurisdictions that Require Recertification in Chemigation Category in the Baseline

7 states – Hawaii, Maine, Nevada, Texas, Virg inia, Wisconsin, & Wyoming currently require an exam for chemigation recertification.

Assumptions:

 Currently, these states are in complia nce with Comm Cert-02, proctoring the recertification exam in the baseline

 It takes a Jr. Technician 1 hour to proctor a group of 50 examinees

 Proctoring of recertification exam is done ev ery 3 years for the 10-year horizon for all certified applicators

 The wage rate for a Junior Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Comm cert-02; Step 1; Baseline Cost per Applicator to Proctor Co mmercial Chemigation Category Recertification Exam; States Currently Requiring Proctoring of Chemigation Category Recertification Exam

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.007 0.26 Total 0.26

Jurisdictions that do Not Require Recertificat ion in Chemigation Category in the Baseline

The remaining 43 states, Puerto Rico, and Other do not require chemigation recertification in the baseline.

Table: Comm cert-02; Step 1; Baseline Cost per Applicator to Proctor Co mmercial Chemigation Category Recertification Exam; Jurisdictions Currently Not Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($)
None

– no category certification requirement 39.44 0 0 0.00

Total 0.00

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm cert-02; Step 2; Cost per Applicator to Proctor Commercia l Chemigation Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.007 0.26 Total 0.26

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N = number of commercial applicators certified in chemigation category.

Given the above: RC B = cost r,i, a B x N RC t=3 P = cost r,i, P x N

Values are presented in the table below.

Table: Comm cert-02; Step 3; Total Annual Baseline and Potential Require ment Costs for Proctoring Chemigation Category Recertification Exam for Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, P ($) N RC B ($) RC t=3 P ($) Alabama 0.0 0.26 22.9 0.0 6.0 Alaska n/a 1 n/a n/a n/a n/a Arizona 0.0 0.26 10.1 0.0 2.7 Arkansas 0.0 0.26 18.7 0.0 4.9 California 0.0 0.26 61.5 0.0 16.2 Colorado 0.0 0.26 15.8 0.0 4.1 Connecticut n/a n/a n/a n/a n/a Delaware 0.0 0.26 23.2 0.0 6.1 Florida 0.0 0.26 31.9 0.0 8.4 Georgia 0.0 0.26 33.2 0.0 8.7 Hawaii 0.26 0.26 6.8 1.8 1.8 Idaho 0.0 0.26 30.8 0.0 8.1*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Illinois 0.0 0.26 6.5 0.0 1.7 Indiana 0.0 0.26 6.1 0.0 1.6 Iowa 0.0 0.26 19.8 0.0 5.2 Kansas 0.0 0.26 8.8 0.0 2.3 Kentucky 0.0 0.26 10.2 0.0 2.7 Louisiana 0.0 0.26 13.1 0.0 3.4 Maine 0.26 0.26 0.0 0.0 0.0 Maryland 0.0 0.26 21.3 0.0 5.6 Massachusetts 0.0 0.26 8.9 0.0 2.3 Michigan 0.0 0.26 9.7 0.0 2.6 Minnesota 0.0 0.26 4.1 0.0 1.1 Mississippi 0.0 0.26 19.0 0.0 5.0 Missouri 0.0 0.26 7.9 0.0 2.1 Montana 0.0 0.26 10.9 0.0 2.9 Nebraska 0.0 0.26 6.5 0.0 1.7 Nevada 0.26 0.26 8.4 2.2 2.2 New Hampshire n/a n/a n/a n/a n/a New Jersey 0.0 0.26 23.2 0.0 6.1 New Mexico 0.0 0.26 12.6 0.0 3.3 New York 0.0 0.26 13.2 0.0 3.5 North Carolina 0.0 0.26 34.9 0.0 9.2 North Dakota 0.0 0.26 16.5 0.0 4.3 Ohio 0.0 0.26 18.4 0.0 4.8 Oklahoma 0.0 0.26 32.8 0.0 8.6 Oregon 0.0 0.26 25.2 0.0 6.6 Pennsylvania 0.0 0.26 10.4 0.0 2.7 Rhode Island n/a n/a n/a n/a n/a South Carolina 0.0 0.26 23.8 0.0 6.2 South Dakota 0.0 0.26 13.5 0.0 3.6 Tennessee 0.0 0.26 25.7 0.0 6.8 Texas 0.26 0.26 29.6 7.8 7.8 Utah 0.0 0.26 12.9 0.0 3.4 Vermont n/a n/a n/a n/a n/a Virginia 0.26 0.26 39.8 10.5 10.5 Washington 0.0 0.26 76.1 0.0 20.0 West Virginia 0.0 0.26 9.2 0.0 2.4 Wisconsin 0.26 0.26 4.3 1.1 1.1 Wyoming 0.26 0.26 31.6 8.3 8.3 Puerto Rico 0.0 0.26 4.9 0.0 1.3*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Other n/a n/a n/a n/a n/a Total, U.S. 875 32 230

1 The "n/a" states currently do not have a chemigation category, and based on the applicator number data and trends in recent years (CPARD, 2013), EPA assum es that these states are not likely to create a chemigation category under the proposed rule.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third y ear, all commercial applicators with chemigation certification must be recertified. EPA assumes that one-third of these app licators will recertify in each year. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-tim e chemigation applicators in the regions is assumed to be constant over time, existing chemigation applicators in jurisdictions without a category will only need to obtai n certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm cert-02; Steps 4 & 5;*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 0.04 0.00 0.04 Alaska 0.00 0.00 0.00 Arizona 0.02 0.00 0.02 Arkansas 0.03 0.00 0.03 California 0.11 0.00 0.11 Colorado 0.03 0.00 0.03 Connecticut 0.00 0.00 0.00 Delaware 0.04 0.00 0.04 Florida 0.06 0.00 0.06 Georgia 0.06 0.00 0.06 Hawaii 0.02 0.02 0.00 Idaho 0.06 0.00 0.06 Illinois 0.01 0.00 0.01 Indiana 0.01 0.00 0.01 Iowa 0.04 0.00 0.04 Kansas 0.02 0.00 0.02 Kentucky 0.02 0.00 0.02 Louisiana 0.02 0.000 0.02 Maine 0.00 0.00 0.00 Maryland 0.04 0.00 0.04 Massachusetts 0.02 0.00 0.02 Michigan 0.02 0.00 0.02 Minnesota 0.01 0.00 0.01 Mississippi 0.03 0.00 0.03 Missouri 0.01 0.00 0.01 Montana 0.02 0.00 0.02 Nebraska 0.01 0.00 0.01 Nevada 0.02 0.02 0.00 New Hampshire 0.00 0.00 0.00 New Jersey 0.04 0.00 0.04 New Mexico 0.02 0.00 0.02 New York 0.02 0.00 0.02 North Carolina 0.06 0.00 0.06 North Dakota 0.03 0.00 0.03 Ohio 0.03 0.00 0.03 Oklahoma 0.06 0.00 0.06 Oregon 0.05 0.00 0.05*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Pennsylvania 0.02 0.00 0.02 Rhode Island 0.00 0.00 0.00 South Carolina 0.04 0.00 0.04 South Dakota 0.02 0.00 0.02 Tennessee 0.05 0.00 0.05 Texas 0.07 0.07 0.00 Utah 0.02 0.00 0.02 Vermont 0.00 0.00 0.00 Virginia 0.09 0.09 0.00 Washington 0.14 0.00 0.14 West Virginia 0.02 0.00 0.02 Wisconsin 0.01 0.01 0.00 Wyoming 0.07 0.07 0.00 Puerto Rico 0.01 0.00 0.01 Other 0.00 0.00 0.00

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Comm cert-02; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 1.630 0.278 1.352 U.S. (annualized value) 0.185 0.032 0.154

******************************************************************* EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5.1.2.7 Comm Cert-02: Establish commercial chemigat ion category, Recertification by Exam or 6 hour CEUs/training every five years

Step 2 - Calculate Costs per Existing Chemigatio n Applicator of Potential Requirement Recertification requirement:

 All commercial applicators take 6 core-specific CEUs, plus 6 category-specific CEUs per category of certification held (o ption to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years ( freq i,t = 0.20)

Table: Comm Cert-02; Recertificatio n every five years; Step 2; Cost of Potential Requirement per Ex isting Chemigation Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 21.49 6 0.2 25.79

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing chemigation applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing chemig ation applicator, presented in Step 2.

 The number of existing commercial chemigation applicators (N Xst Com Air ) in each jurisdiction is obtained from the CPARD databa se or extrapolated to other states (see Chapter 3.3.1)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of commercial chemigation applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of commercial ch emigation applicators under the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis, but distributed over different time frame or not delineated between core and category certifi cation. EPA acknowledges that jurisdictions will have to revise their regulations to acco mmodate the potential changes, but that the number of CEUs required of an applicator may not change. Given the above: RC B = cost r,i, a B x N Xst Com Chem*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Com Chem
Values are presented in the table below.

Comm Cert-02, Recertification of Chem igation Certification; Step 3; Total Annual Jurisdictional Baseline and Po tential Requirement Costs for Recertification of Commercial Chemigation Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Com Chem RC B ($) RC P ($)
Alabama 0 26 21 0 553 Alaska 0 26 0 0 0 Arizona 0 26 9 0 243 Arkansas 0 26 17 0 450 California 0 26 57 0 1,482 Colorado 0 26 15 0 380 Connecticut 0 26 0 0 0 Delaware 0 26 22 0 560 Florida 0 26 30 0 768 Georgia 0 26 31 0 800 Hawaii 107 26 6 681 681 Idaho 0 26 29 0 742 Illinois 0 26 6 0 157 Indiana 0 26 6 0 146 Iowa 0 26 19 0 478 Kansas 0 26 8 0 213 Kentucky 0 26 10 0 246 Louisiana 0 26 12 0 316 Maine 0 26 0 0 0 Maryland 0 26 20 0 513 Massachusetts 0 26 8 0 214 Michigan 0 26 9 0 234 Minnesota 0 26 4 0 99 Mississippi 0 26 18 0 458 Missouri 0 26 7 0 192 Montana 0 26 10 0 262 Nebraska 0 26 6 0 158 Nevada 0 26 8 0 202 New Hampshire 0 26 0 0 0 New Jersey 0 26 22 0 558 New Mexico 0 26 12 0 304 New York 0 26 12 0 317 North Carolina 0 26 33 0 842 North Dakota 0 26 15 0 398 Ohio 0 26 17 0 442 Oklahoma 0 26 31 0 792*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Oregon 0 26 24 0 607 Pennsylvania 0 26 10 0 252 Rhode Island 0 26 0 0 0 South Carolina 0 26 22 0 573 South Dakota 0 26 13 0 326 Tennessee 0 26 24 0 620 Texas 107 26 28 2,973 2,973 Utah 0 26 12 0 310 Vermont 0 26 0 0 0 Virginia 64 26 37 2,396 2,396 Washington 0 26 71 0 1,833 West Virginia 0 26 9 0 222 Wisconsin 26 26 4 103 103 Wyoming 0 26 30 0 761 Puerto Rico 0 26 5 0 118 Other Jurisdictions 0 26 0 0 0 Total, U.S. 817 6,153 25,294

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of recertification would remain constant ther eafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Comm Cert-02, Recertification of Chemigation Certification; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 3 0 3 Alaska 0 0 0 Arizona 1 0 1 Arkansas 3 0 3 California 9 0 9 Colorado 2 0 2 Connecticut 0 0 0 Delaware 3 0 3 Florida 5 0 5 Georgia 5 0 5 Hawaii 6 6 0 Idaho 4 0 4 Illinois 1 0 1 Indiana 1 0 1 Iowa 3 0 3 Kansas 1 0 1 Kentucky 1 0 1 Louisiana 2 0 2 Maine 0 0 0 Maryland 3 0 3 Massachusetts 1 0 1 Michigan 1 0 1 Minnesota 1 0 1 Mississippi 3 0 3 Missouri 1 0 1 Montana 2 0 2 Nebraska 1 0 1 Nevada 1 0 1 New Hampshire 0 0 0 New Jersey 3 0 3 New Mexico 2 0 2 New York 2 0 2 North Carolina 5 0 5 North Dakota 2 0 2 Ohio 3 0 3*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Oklahoma 5 0 5 Oregon 4 0 4 Pennsylvania 1 0 1 Rhode Island 0 0 0 South Carolina 3 0 3 South Dakota 2 0 2 Tennessee 4 0 4 Texas 26 26 0 Utah 2 0 2 Vermont 0 0 0 Virginia 21 21 0 Washington 11 0 11 West Virginia 1 0 1 Wisconsin 1 1 0 Wyoming 4 0 4 Puerto Rico 1 0 1 Other Jurisdictions 0 0 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Comm Cert-02, Recertification of Chemigation Certification; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 166 54 112 U.S. (annualized value) 19 6 13 Per applicator incremental cost 0.016

State Costs of Administering Recertification Exam or Verifying Completion of Training for Application Method-Spec ific Categories*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

The options analyzed in this sec tion address the requirements for re certification of applicators in the application method-specific categories as they apply to the administ ration of recertification exam or verifying completion of requ ired training for recertification.

Commercial Applicator
Although there are currently no federal commercial applicator certification categories based on application method, some states do require certification in one or more of the application method-specific categories among those consider ed in the potential requirements. For commercial certification categories considered as potential requirements (aerial, chemigation, general fumigation, soil fumigation, and non-soil fu migation), there are di fferent jurisdictions that currently require each. Jurisdictions that do not require a partic ular category have zero baseline cost for certification or recertification fo r that category. Most of the jurisdictions that require a given category in the baseline also require recertification. EPA considers these recertification requirement s in compliance with the proposed requirements.
For commercial applicators, the jurisdictions th at have one or more of the application methodspecific categories require rece rtification by passing a writte n exam or by completing the required training. The proposed rule also requires recertification in thes e categories by passing a written exam or by completi ng the required training.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that commercial applicators co mpleted the required trai ning. EPA assumes that it takes a state official one hour to conduct ve rification of the traini ng requirements for 50 commercial applicators. Therefor e, whether a jurisdiction recertifi es by exam or training, its cost of administration is the same – one hour of a state official’s time for 50 commercial applicators.

5.1.2.8 Comm cert-02: Administer New Commercial Chemigation Category Exam or Training: Every 5 Years

Step 1 - Calculate Baseline Costs

Jurisdictions that Require Recertification in Chemigation Category in the Baseline

7 states – Hawaii, Maine, Nevada, Texas, Virg inia, Wisconsin, & Wyoming currently require an exam for chemigation recertification.

Assumptions:

 Currently, these states are in complia nce with Comm Cert-02, proctoring the recertification exam in the baseline

 It takes a Jr. Technician 1 hour to proctor a group of 50 examinees*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Proctoring of recertification exam is done ev ery 3 years for the 10-year horizon for all certified applicators

 The wage rate for a Junior Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Comm cert-02; Step 1; Baseline Cost per Applicator to Proctor Co mmercial Chemigation Category Recertification Exam; States Currently Requiring Proctoring of Chemigation Category Recertification Exam

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.007 0.26 Total 0.26

Jurisdictions that do Not Require Recertificat ion in Chemigation Category in the Baseline

The remaining 43 states, Puerto Rico, and Other do not require chemigation recertification in the baseline.

Table: Comm cert-02; Step 1; Baseline Cost per Applicator to Proctor Co mmercial Chemigation Category Recertification Exam; Jurisdictions Currently Not Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($)
None

– no category certification requirement 39.44 0 0 0.00

Total 0.00

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Comm cert-02; Step 2; Cost per Applicator to Proctor Commercia l Chemigation Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.004 0.16 Total 0.16

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N = number of commercial applicators certified in chemigation category.

Given the above: RC B = cost r,i, a B x N RC t=3 P = cost r,i, P x N

Values are presented in the table below.

Table: Comm cert-02; Step 3; Total Annual Baseline and Potential Require ment Costs for Proctoring Chemigation Category Recertification Exam for Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, P ($) N RC B ($) RC t=3 P ($) Alabama 0.0 0.16 22.9 0.0 3.6 Alaska n/a 1 n/a n/a n/a n/a Arizona 0.0 0.16 10.1 0.0 1.6 Arkansas 0.0 0.16 18.7 0.0 2.9 California 0.0 0.16 61.5 0.0 9.7 Colorado 0.0 0.16 15.8 0.0 2.5 Connecticut n/a n/a n/a n/a n/a Delaware 0.0 0.16 23.2 0.0 3.7 Florida 0.0 0.16 31.9 0.0 5.0 Georgia 0.0 0.16 33.2 0.0 5.2 Hawaii 0.26 0.16 6.8 1.8 1.8 Idaho 0.0 0.16 30.8 0.0 4.9 Illinois 0.0 0.16 6.5 0.0 1.0 Indiana 0.0 0.16 6.1 0.0 1.0 Iowa 0.0 0.16 19.8 0.0 3.1 Kansas 0.0 0.16 8.8 0.0 1.4 Kentucky 0.0 0.16 10.2 0.0 1.6 Louisiana 0.0 0.16 13.1 0.0 2.1 Maine 0.26 0.16 0.0 0.0 0.0 Maryland 0.0 0.16 21.3 0.0 3.4*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Massachusetts 0.0 0.16 8.9 0.0 1.4 Michigan 0.0 0.16 9.7 0.0 1.5 Minnesota 0.0 0.16 4.1 0.0 0.6 Mississippi 0.0 0.16 19.0 0.0 3.0 Missouri 0.0 0.16 7.9 0.0 1.3 Montana 0.0 0.16 10.9 0.0 1.7 Nebraska 0.0 0.16 6.5 0.0 1.0 Nevada 0.26 0.16 8.4 2.2 2.2 New Hampshire n/a n/a n/a n/a n/a New Jersey 0.0 0.16 23.2 0.0 3.7 New Mexico 0.0 0.16 12.6 0.0 2.0 New York 0.0 0.16 13.2 0.0 2.1 North Carolina 0.0 0.16 34.9 0.0 5.5 North Dakota 0.0 0.16 16.5 0.0 2.6 Ohio 0.0 0.16 18.4 0.0 2.9 Oklahoma 0.0 0.16 32.8 0.0 5.2 Oregon 0.0 0.16 25.2 0.0 4.0 Pennsylvania 0.0 0.16 10.4 0.0 1.6 Rhode Island n/a n/a n/a n/a n/a South Carolina 0.0 0.16 23.8 0.0 3.7 South Dakota 0.0 0.16 13.5 0.0 2.1 Tennessee 0.0 0.16 25.7 0.0 4.1 Texas 0.26 0.16 29.6 7.8 7.8 Utah 0.0 0.16 12.9 0.0 2.0 Vermont n/a n/a n/a n/a n/a Virginia 0.26 0.16 39.8 10.5 10.5 Washington 0.0 0.16 76.1 0.0 12.0 West Virginia 0.0 0.16 9.2 0.0 1.5 Wisconsin 0.26 0.16 4.3 1.1 1.1 Wyoming 0.26 0.16 31.6 8.3 8.3 Puerto Rico 0.0 0.16 4.9 0.0 0.8 Other n/a n/a n/a n/a n/a Total, U.S. 875 32 151

1 The "n/a" states currently do not have a chemigation category, and based on the applicator number data and trends in recent years (CPARD, 2013), EPA assum es that these states are not likely to create a chemigation category under the proposed rule.

Step 4 - Calculate the PV of Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third y ear, all commercial applicators with chemigation certification must be recertified. EPA assumes that one-third of these app licators will recertify in each year. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-tim e chemigation applicators in the regions is assumed to be constant over time, existing chemigation applicators in jurisdictions without a category will only need to obtai n certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm cert-02; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 0.02 0.00 0.02 Alaska 0.00 0.00 0.00 Arizona 0.01 0.00 0.01 Arkansas 0.02 0.00 0.02 California 0.07 0.00 0.07 Colorado 0.02 0.00 0.02*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Connecticut 0.00 0.00 0.00 Delaware 0.02 0.00 0.02 Florida 0.03 0.00 0.03 Georgia 0.04 0.00 0.04 Hawaii 0.02 0.02 0.00 Idaho 0.03 0.00 0.03 Illinois 0.01 0.00 0.01 Indiana 0.01 0.00 0.01 Iowa 0.02 0.00 0.02 Kansas 0.01 0.00 0.01 Kentucky 0.01 0.00 0.01 Louisiana 0.01 0.00 0.01 Maine 0.00 0.00 0.00 Maryland 0.02 0.00 0.02 Massachusetts 0.01 0.00 0.01 Michigan 0.01 0.00 0.01 Minnesota 0.00 0.00 0.00 Mississippi 0.02 0.00 0.02 Missouri 0.01 0.00 0.01 Montana 0.01 0.00 0.01 Nebraska 0.01 0.00 0.01 Nevada 0.02 0.02 0.00 New Hampshire 0.00 0.00 0.00 New Jersey 0.02 0.00 0.02 New Mexico 0.01 0.00 0.01 New York 0.01 0.00 0.01 North Carolina 0.04 0.00 0.04 North Dakota 0.02 0.00 0.02 Ohio 0.02 0.00 0.02 Oklahoma 0.04 0.00 0.04 Oregon 0.03 0.00 0.03 Pennsylvania 0.01 0.00 0.01 Rhode Island 0.00 0.00 0.00 South Carolina 0.03 0.00 0.03 South Dakota 0.01 0.00 0.01 Tennessee 0.03 0.00 0.03 Texas 0.07 0.07 0.00 Utah 0.01 0.00 0.01 Vermont 0.00 0.00 0.00*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Virginia 0.09 0.09 0.00 Washington 0.08 0.00 0.08 West Virginia 0.01 0.00 0.01 Wisconsin 0.01 0.01 0.00 Wyoming 0.07 0.07 0.00 Puerto Rico 0.01 0.00 0.01 Other 0.00 0.00 0.00

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Comm Cert-02; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 1.089 0.278 0.811 U.S. (annualized value) 0.124 0.032 0.092

General Fumigation Applications

Step 1 - Calculate Baseline Costs per Existing Commercial Applicator, General Fumigation

Note that the baseline cost estimate is identical for both options pertaini ng to the recertification of the chemigation category (i mplied under option Comm Cert-03).

Eight jurisdictions and those a ggregated under ‘Other Jurisdic tion’ do not have a fumigation certification requirement and thus no recertification requirements. Baseline cost is zero for the following jurisdictions:

Alaska Kansas Louisiana Michigan Montana Tennessee*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Vermont Puerto Rico Other Jurisdictions

Ten other jurisdictions require a fumigation certification but do not have specific category recertification requirements. Baseline cost for re certification in aerial applications is zero in the following jurisdictions:

Kentucky Maine Mississippi Missouri Nebraska Nevada North Dakota Ohio Oregon South Carolina Utah Washington West Virginia Wyoming

The cost estimate for other jurisdictions is the ex pected annual cost per commercial applicator in the state, for recertification. The estimate is calculated as

ݐݏ݋ܿ ைெ஼,௜,௥ ஻ ൌ ݓ COM ∙ ܪ ௥,௜,஼ைெ ஻ ݍ݁ݎ݂൫∙ ௧,௜ ݐݎ%ܿ݁ ∙ ௜ ൯

where cost r,i,COM B is the baseline cost ( B ) per commercial applicator ( COM ) for the recertification requirement ( r ) in jurisdiction ( i ), w COM is the hourly wage rate (opportunity cost) for a commercial applicator; freq i,t is the reciprocal of the r ecertification time period and represents either the fraction of commercial applicators obtaining r ecertification (if, for example, by examination) or the fraction of Cumulative Ed ucation Units (CEUs) an applicator obtains each year to meet the total number required; and % cert i is the proportion of fumigators in jurisdiction i with certification in a fumi gation category, since some stat es have a soil fumigation category, some have a non-soil fumigation category, and some states have both.

Alabama Recertification Requirements:

 30 CEUs of 50 minutes, or 25 hour s (option to retake initia l exams for core and each category of certification)

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 3 years ( freq i,t = 0.333)

 Alabama has a non-soil fumigation category. The average number of non-soil fumigation certifications is 50.2 (CPARD, 2014) and EP A estimates there are 17.9 commercial soil fumigators in Alabama; % cert AL = 50.2/(50.2+17.9) = 0.737

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Alabama

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 25 0.333 0.737 131.99

Arizona*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Recertification Requirements:

 6 CEUs of 50 minutes, or 5 hours (option to retake initial exam s for core and each category of certification)

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 1 year ( freq i,t = 1.0)

 Arizona has a non-soil fumigation category. The average number of non-soil fumigation certifications is 220.7 (CPARD, 2014) and EP A estimates there are 38.0 commercial soil fumigators in Arizona; % cert AL = 220.7/(220.7+38.0) = 0.853

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Arizona

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 5 1.0 0.853 91.65

Arkansas Recertification Requirements:

 Single training session of 240 minutes, or 4 hour s, for each category of certification held (option to retake initial exams for co re and each category of certification)

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 3 years ( freq i,t = 0.333)

 Arkansas has both fumigation categories. Th erefore all fumigators are certified; % cert AL = 1.0

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Arkansas

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 4 0.333 1.0 28.66

California Recertification requirements:

 20 CEUs of 60 minutes, or 20 hours (see Ag Plan t category), with option to retake initial

exam

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 2 years ( freq i,t = 0.50)

 California has a soil fumigation category. The average number of soil fumigation certifications is 431.4 (CPARD, 2014) and EPA estimates there are 3,751 commercial non-soil fumigators in California; % cert AL = 431.4/(431.4+3,751) = 0.103

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – California*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 20 0.5 0.103 22.17

Colorado Recertification Requirements:

 1 category-specific CEU of 30 mi nutes per category of certifi cation with option to retake category exam(s)

 EPA assumes the two options are equivalent in terms of effort)

 Period is 3 years ( freq i,t = 0.333)

 Colorado has a non-soil fumigation categor y. The average number of non-soil fumigation certifications is 106.8 (CPARD , 2014) and EPA estimates there are no commercial soil fumigators in Colorado. Therefore all fumigators are certified; % cert AL = 1.0

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Colorado

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 0.5 0.333 1.0 3.58

Connecticut Recertification Requirements:

 12 CEUs of 60 minutes, or 12 hours, for each cat egory of certification held (option to retake initial exams for core and each category of certification)

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 5 years ( freq i,t = 0.20)

 Connecticut has both fumigation categories. Therefore all fumigato rs are certified; % cert

AL

= 1.0

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Connecticut

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 12 0.2 1.0 51.58

Delaware Recertification requirements:

 8 CEUs of 50 minutes, or 6.7 hours (see Ag Pl ant); option to retake initial exams for specific categories

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 1 year for all categories ( freq i,t = 1.0)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Delaware has both fumigation categories. Th erefore all fumigators are certified; % cert AL = 1.0

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Delaware

Action Wage ($) Time (hours) frequency (per year) Avg # cat. certs per applicator Cost ($)
Recertification 21.49 6.7 1 1.0 143.99

Florida Recertification requirements:

 8 CEUs of 50 minutes, or 6.7 hours (see Ag Plan t category), with option to retake initial

exam

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 4 years for all categories ( freq i,t = 0.25)

 Florida has both fumigation categories. Th erefore all fumigators are certified; % cert AL = 1.0

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification, General Fumigation – Florida

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 6.7 0.25 1.0 36.00

Georgia Recertification requirements:

 10 CEUs of 60 minutes, or 10 hours (see Ag Plan t category) with option to retake initial

exam

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 5 years for all categories ( freq i,t = 0.20)

 Georgia has a non-soil fumigation category. The average number of non-soil fumigation certifications is 284.7 (CPARD, 2014) and EP A estimates there are 89.9 commercial soil fumigators in Georgia; % cert AL = 284.7/(284.7+89.9) = 0.760

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Georgia

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 10 0.20 0.760 32.67

Hawaii Recertification requirements:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 25 CEUs of 60 minutes, or 25 hours (see Ag Plan t category) with option to retake initial exams for specific categories

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 5 years for all categories ( freq i,t = 0.20)

 Hawaii has a non-soil fumigation category. Th e average number of non-soil fumigation certifications is 232.7 (CPARD, 2014) and EP A estimates there are 49.5 commercial soil fumigators in Georgia; % cert AL = 232.7/(232.7+49.5) = 0.825

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Hawaii

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 25 0.20 0.825 88.61

Idaho Recertification Requirements:

 15 CEUs of 50 minutes, or 12.5 hours, for each ca tegory of certificati on held (option to retake initial exams for core and each category of certification)

 EPA assumes the two options are eq uivalent in terms of effort

 Period is 2 years ( freq i,t = 0.50)

 Idaho has a soil fumigation category. The average number of soil fumigation certifications is 222.7 (CPARD, 2014) and EPA estimates there are 181.4 commercial non-soil fumigators in Idaho; % cert AL = 222.7/(222.7+181.4) = 0.551

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Idaho

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 12.5 0.5 0.551 74.02

Illinois Recertification Requirements:

 6 CEUs of 60 minutes, or 6 hours, for each category of certification

 Period is 3 years ( freq i,t = 0.333)

 Illinois has both fumigation ca tegories. Therefore all fu migators are certified; % cert AL = 1.0

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Illinois

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 6 0.333 1.0 42.98*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Indiana Recertification requirements:

 20 CEUs of 60 minutes, or 20 hours (see Ag Pl ant); option to retake initial exams for specific categories

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 2 years for all categories years ( freq i,t = 0.50)

 Indiana has a non-soil fumigation category. The average number of non-soil fumigation certifications is 373.5 (CPARD, 2014) and EP A estimates there are 73.6 commercial soil fumigators in Indiana; % cert AL = 373.5/(373.5+73.6) = 0.835

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Indiana

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 20 0.50 0.835 179.52

Iowa Recertification Requirements:

 6 category-specific CEUs of 120 minutes, or 12 hours, per category of certification with option to retake category exam(s)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

 Iowa has a non-soil fumigation category. The average number of non-soil fumigation certifications is 602.3 (CPARD, 2014) and EPA estimates there are 478.3 commercial soil fumigators in Iowa; % cert AL = 602.3/(602.3+478.3) = 0.557

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Iowa

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 12 0.333 0.557 47.91

Maryland Recertification requirements:

 8 CEUs of 30 minutes, or 4 hours (see Ag Plant); option to reta ke initial exams for specific categories

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 1 year for all categories ( freq i,t = 1.0)

 Maryland has a non-soil fumigation categor y. The average number of non-soil fumigation certifications is 1,387 (CPARD , 2014) and EPA estimates there are no*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

commercial soil fumigators in Maryland. Th erefore all fumigators are certified; % cert AL = 1.0

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Maryland

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 4 1 1.0 85.97

Massachusetts Recertification Requirements:

 12 category-specific CEUs of 50 minutes, or 10 hours, per category of certification with option to retake category exam(s)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

 Massachusetts has a non-soil fumigation cat egory. The average number of non-soil fumigation certifications is 38.3 (CPARD , 2014) and EPA estimates there are no commercial soil fumigators in Massachusetts. Therefore all fumigators are certified; % cert AL = 1.0

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Massachusetts

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 10 0.333 1.0 71.64

Minnesota Recertification Requirements:

 Single training session of 6 hours, (see Ag Plant) ; option to retake initial exams for core and each category of certification

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

 Minnesota has both fumigation categories. Th erefore all fumigators are certified; % cert

AL

= 1.0

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Minnesota

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 6 0.333 1.0 42.98

New Hampshire*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Recertification Requirements:

 12 category-specific CEUs of 60 minutes, or 12 hours, per category of certification with option to retake category exam(s)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs)

 Period is 5 years ( freq i,t = 0.20)

 New Hampshire has a non-soil fumigation ca tegory. The average number of non-soil fumigation certifications is 8.0 (CPARD , 2014) and EPA estimates there are no commercial soil fumigators in New Hampshire. Therefore all fumigators are certified; % cert AL = 1.0

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – New Hampshire

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 12 0.2 1.0 51.58

New Jersey Recertification Requirements:

 24 CEUs (8 core & 16 cat) of 30 minutes, or 12 hours, for each cat egory certification held (option to retake initial exams for core and each categor y of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years ( freq i,t = 0.20)

 New Jersey has a non-soil fumigation categ ory. The average number of non-soil fumigation certifications is 125.8 (CPARD , 2014) and EPA estimates there are 17.1 commercial soil fumigators in New Jersey; % cert AL = 125.8/(125.8+17.1) = 0.880

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – New Jersey

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 12 0.2 0.880 45.40

New Mexico Recertification Requirements:

 4 category-specific CEUs of 60 minutes, or 12 hours, per ca tegory of certification with option to retake category exam(s)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs)

 Period is 1 year ( freq i,t = 1.0)

 New Mexico has a non-soil fumigation categ ory. The average number of non-soil fumigation certifications is 63.3 (CPARD , 2014) and EPA estimates there are 11.2 commercial soil fumigators in New Mexico; % cert AL = 125.8/(125.8+17.1) = 0.880*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Annual Baseline Cost per Commercial Applic ator for Recertification – New Mexico

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 12 1 0.880 219.20

New York Recertification requirements:

 8 CEUs (at least 2 cat, 6 cat or core) of 60 minutes, or 8 hours (see Ag Plant); option to retake initial exam

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years for all categories ( freq i,t = 0.333)

 New York has both fumigation categories. Therefore all fumigators are certified; % cert

AL

= 1.0

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – New York

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 8 0.333 1.0 57.31

North Carolina Recertification requirements:

 10 CEUs of 60 minutes, or 10 hours (see Ag Pl ant); option to retake initial exams for specific categories

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years for all categories ( freq i,t = 0.20)

 North Carolina has both fumigation categories. Therefore all fumigators are certified; % cert AL = 1.0

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – North Carolina

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 10 0.20 1.0 42.98

Oklahoma Recertification requirements:

 20 CEUs of 60 minutes, or 20 hours (see Ag Pl ant); option to retake initial exams for specific categories

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years for all categories ( freq i,t = 0.50)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Oklahoma has a non-soil fumigation categor y. The average number of non-soil fumigation certifications is 756.0 (CPARD , 2014) and EPA estimates there are 112.3 commercial soil fumigators in Oklahoma; % cert AL = 756.0/(756.0+112.3) = 0.871

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Oklahoma

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 20 0.20 0.871 74.84

Pennsylvania Recertification requirements:

 10 CEUs of 30 minutes, or 5 hours (see Ag Pl ant); option to retake initial exams for specific categories

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years for all categories ( freq i,t = 0.333)

 Pennsylvania has both fumigation categories. Therefore all fumigato rs are certified; % cert AL = 1.0

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Pennsylvania

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 5 0.333 1.0 35.82

Rhode Island Recertification Requirements:

 8 category-specific CEUs of 60 minutes, or 8 hours, per category of certification with option to retake category exam(s)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs)

 Period is 5 years ( freq i,t = 0.20)

 Rhode Island has a non-soil fumigation cat egory. The average number of non-soil fumigation certifications is 8.0 (CPARD , 2014) and EPA estimates there are no commercial soil fumigators in Rhode Island. Therefore all fumigators are certified; % cert AL = 1.0

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Rhode Island

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 8 0.2 1.0 34.39*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

South Dakota Recertification Requirements:

 Single category-specific trai ning session of 480 minutes, or 8 hours, for each category certification held with option to retake in itial exams for core and each category of certification)

 EPA assumes the option of exam is equiva lent in effort to taking the training)

 Period is 2 years ( freq i,t = 0.50)

 South Dakota has a non-soil fumigation categ ory. The average number of non-soil fumigation certifications is 218.7 (CPARD , 2014) and EPA estimates there are 4.8 commercial soil fumigators in South Dakota; % cert AL = 218.7/(218.7+4.8) = 0.979

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – South Dakota

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 8 0.5 0.979 84.14

Texas Recertification requirements:

 5 CEUs of 60 minutes, or 5 hours (see Ag Pl ant); option to retake initial exam for each category

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 1 year for all categories ( freq i,t = 1.0)

 Texas has a non-soil fumigation category. Th e average number of non-soil fumigation certifications is 1,045 (CPARD, 2014) and EPA estimates there are 175.1 commercial soil fumigators in Texas; % cert AL = 1,045/(1,045+175.1) = 0.857

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Texas

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 5 1 0.857 92.04

Virginia Recertification Requirements:

 Single category-specific trai ning session of 180 minutes, or 3 hours, for each category certification held with option to retake in itial exams for core and each category of certification

 EPA assumes the option of exam is equiva lent in effort to taking the training

 Period is 2 years ( freq i,t = 0.50)

 Virginia has both fumigation categories. Th erefore all fumigators are certified; % cert AL = 1.0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Virginia

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 6 0.5 1.0 32.24

Wisconsin Recertification Requirements:

 Must retake initial exam for each category of certification (no core)

 Each exam takes 1 hour to take plus 5 hours of prep time, or 6 hours, as per general recertification (s ee Appendix A.5.a.i)

 Period is 5 years ( freq i,t = 0.20)

 Wisconsin has both fumigation categories. Th erefore all fumigators are certified; % cert

AL

= 1.0

Annual Baseline Cost per Commercial Applicat or for Recertification, General Fumigation – Wisconsin

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 21.49 6 0.2 1.0 34.39

5.1.2.9 Comm Cert-03: Establish commercial general fumigation category, Recertification by Exam or 6 hour CEUs/training every three years

Step 2 - Calculate Costs per Existing Aerial Applicator of Potential Requirement Recertification requirement:

 All commercial applicators take 6 core-specific CEUs, plus 6 category-specific CEUs per category of certification held (o ption to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 3 years ( freq i,t = 0.333)

Table: Comm Cert-03; Recertificat ion every three years; Step 2; Cost of Potential Requirement per Existing Fumigator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 21.49 6 0.333 42.98*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing commercial fumigator, both soil and non-soil fu migation, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing commerc ial fumigator, presented in Step 2.

 The number of existing commercial soil and non-soil fumigant applicators (N Xst Com Fum ) in each jurisdiction is obtained from the CPAR D database or extrapolated to other states (see Chapter 3.3.1)

 EPA assumes that commercial applicators do not engage in bo th soil and non-soil fumigation, given the differences in chemical s used and application methods. To the extent that some applicators e ngage in both activities, this implies that estimates of the baseline cost and the cost under the potentia l requirement are biased upward. The greater bias would in the estimate of the cost under the potential requirement because it includes all applicators whereas the baseline includes only the subset of applicators in jurisdictions with current fumigation categories. As a result, the estimate of incremental cost is also biased upward.

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of commercial fumi gant applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of commercial aerial applicators under the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis, but distributed over differe nt time frame. EPA acknowledges that jurisdictions will have to revise their re gulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not change. Given the above: RC B = cost r,i, a B x N Xst Com Air RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Com Fum
Values are presented in the table below.

Comm Cert-03, Recertification of General Fumigation C ertification; Step 3; Total Annual Jurisdictional Baseline and Po tential Requirement Costs for Recertification of Commercial Fumigators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Com Fum RC B ($) RC P ($)
Alabama 132 43 68 8,985 8,985 Alaska 0 43 0 0 0 Arizona 92 43 259 23,712 23,712*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Arkansas 29 43 178 5,101 7,651 California 22 43 4,183 92,714 179,786 Colorado 4 43 107 383 4,592 Connecticut 52 43 21 1,066 1,066 Delaware 144 43 166 23,879 23,879 Florida 36 43 6,564 236,279 282,125 Georgia 33 43 375 12,236 16,100 Hawaii 89 43 282 25,002 25,002 Idaho 74 43 404 29,909 29,909 Illinois 43 43 234 10,051 10,051 Indiana 180 43 447 80,270 80,270 Iowa 48 43 1,081 51,780 51,780 Kansas 0 43 708 0 30,414 Kentucky 0 43 586 0 25,202 Louisiana 0 43 194 0 8,327 Maine 0 43 87 0 3,754 Maryland 86 43 1,387 119,220 119,220 Massachusetts 72 43 38 2,746 2,746 Michigan 0 43 455 0 19,562 Minnesota 43 43 348 14,951 14,951 Mississippi 0 43 77 0 3,307 Missouri 0 43 489 0 21,028 Montana 0 43 0 0 0 Nebraska 0 43 471 0 20,245 Nevada 0 43 42 0 1,798 New Hampshire 52 43 8 413 413 New Jersey 45 43 143 6,490 6,490 New Mexico 219 43 75 16,333 16,333 New York 57 43 887 50,825 50,825 North Carolina 43 43 211 9,069 9,069 North Dakota 0 43 516 0 22,186 Ohio 0 43 386 0 16,577 Oklahoma 75 43 868 64,990 64,990 Oregon 0 43 379 0 16,290 Pennsylvania 36 43 511 18,303 21,964 Rhode Island 34 43 10 350 437 South Carolina 0 43 201 0 8,645 South Dakota 84 43 223 18,798 18,798 Tennessee 0 43 302 0 12,997 Texas 92 43 1,220 112,328 112,328 Utah 0 43 111 0 4,780 Vermont 0 43 0 0 0 Virginia 32 43 257 8,296 11,061 Washington 0 43 774 0 33,247 West Virginia 0 43 39 0 1,655*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Wisconsin 34 43 263 9,049 11,312 Wyoming 0 43 72 0 3,099 Puerto Rico 0 43 12 0 500 Other Jurisdictions 0 43 0 0 0 Total, U.S. 26,718 1,053,527 1,459,456

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of recertification would remain constant ther eafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Comm Cert-03, Recertification of Gen eral Fumigation Certification; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 79 79 0 Alaska 0 0 0 Arizona 208 208 0 Arkansas 60 45 15*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

California 1,326 815 511 Colorado 28 3 25 Connecticut 9 9 0 Delaware 210 210 0 Florida 2,345 2,076 269 Georgia 130 108 23 Hawaii 220 220 0 Idaho 263 263 0 Illinois 88 88 0 Indiana 705 705 0 Iowa 455 455 0 Kansas 179 0 179 Kentucky 148 0 148 Louisiana 49 0 49 Maine 22 0 22 Maryland 1,047 1,047 0 Massachusetts 24 24 0 Michigan 115 0 115 Minnesota 131 131 0 Mississippi 19 0 19 Missouri 123 0 123 Montana 0 0 0 Nebraska 119 0 119 Nevada 11 0 11 New Hampshire 4 4 0 New Jersey 57 57 0 New Mexico 144 144 0 New York 447 447 0 North Carolina 80 80 0 North Dakota 130 0 130 Ohio 97 0 97 Oklahoma 571 571 0 Oregon 96 0 96 Pennsylvania 182 161 21 Rhode Island 4 3 1 South Carolina 51 0 51 South Dakota 165 165 0 Tennessee 76 0 76 Texas 987 987 0 Utah 28 0 28 Vermont 0 0 0 Virginia 89 73 16*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Washington 195 0 195 West Virginia 10 0 10 Wisconsin 93 80 13 Wyoming 18 0 18 Puerto Rico 3 0 3 Other Jurisdictions 0 0 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Comm Cert-03, Recertification of Ge neral Fumigation Certification; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 11,640 9,256 2,384 U.S. (annualized value) 1,325 1,054 271 Per applicator incremental cost 0.010

State Costs of Administering Recertification Exam or Verifying Completion of Training for Application Method-Spec ific Categories

The options analyzed in this sec tion address the requirements for re certification of applicators in the application method-specific categories as they apply to the administ ration of recertification exam or verifying completion of requ ired training for recertification.

Commercial Applicator
Although there are currently no federal commercial applicator certification categories based on application method, some states do require certification in one or more of the application method-specific categories among those consider ed in the potential requirements. For commercial certification categories considered as potential requirements (aerial, chemigation, general fumigation, soil fumigation, and non-soil fu migation), there are di fferent jurisdictions*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

that currently require each. Jurisdictions that do not require a partic ular category have zero baseline cost for certification or recertification fo r that category. Most of the jurisdictions that require a given category in the baseline also require recertification. EPA considers these recertification requirement s in compliance with the proposed requirements.
For commercial applicators, the jurisdictions th at have one or more of the application methodspecific categories require rece rtification by passing a writte n exam or by completing the required training. The proposed rule also requires recertification in thes e categories by passing a written exam or by completi ng the required training.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that commercial applicators co mpleted the required trai ning. EPA assumes that it takes a state official one hour to conduct ve rification of the traini ng requirements for 50 commercial applicators. Therefor e, whether a jurisdiction recertifi es by exam or training, its cost of administration is the same – one hour of a state official’s time for 50 commercial applicators.

5.1.2.10 Comm Cert-03: Administer New Commercial General Fumigation Category Exam or Training: Every 3 Years

Step 1 - Calculate Baseline Costs

Jurisdictions that Require Recertification in General Fumigation Category in the Baseline

No jurisdiction currently require s certification or recertification in general fumigation.

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

 It takes a Jr. technician one hour to proctor a group of 50 examinees taking recertification

exam
Table: Comm Cert-03; Step 2; Cost per Applicator to Proctor Commercia l General Fumigation Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.007 0.26 Total 0.26*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N = number of commercial applicators cer tified in general fumigation category.

Given the above: RC B = cost r,i, a B x N RC t=3 P = cost r,i, P x N

Values are presented in the table below.

Table: Comm Cert-03; Step 3; Total Annual Baseline and Potential Requi rement Costs for Proctoring General Fumigation Category Recertification Exam for Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, P ($) N RC B ($) RC t=3 P ($) Alabama 0.0 0.26 74 0.0 19.5 Alaska n/a 1 n/a n/a n/a n/a Arizona 0.0 0.26 281 0.0 73.8 Arkansas 0.0 0.26 193 0.0 50.9 California 0.0 0.26 4,530 0.0 1191.2 Colorado 0.0 0.26 115 0.0 30.3 Connecticut 0.0 0.26 22 0.0 5.9 Delaware 0.0 0.26 181 0.0 47.7 Florida 0.0 0.26 7,092 0.0 1864.8 Georgia 0.0 0.26 407 0.0 107.1 Hawaii 0.0 0.26 306 0.0 80.5 Idaho 0.0 0.26 443 0.0 116.5 Illinois 0.0 0.26 253 0.0 66.5 Indiana 0.0 0.26 485 0.0 127.6 Iowa 0.0 0.26 1,181 0.0 310.6 Kansas 0.0 0.26 766 0.0 201.4 Kentucky 0.0 0.26 634 0.0 166.7 Louisiana 0.0 0.26 210 0.0 55.2*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Maine 0.0 0.26 94 0.0 24.8 Maryland 0.0 0.26 1,498 0.0 393.8 Massachusetts 0.0 0.26 41 0.0 10.9 Michigan 0.0 0.26 496 0.0 130.4 Minnesota 0.0 0.26 376 0.0 98.9 Mississippi 0.0 0.26 83 0.0 22.0 Missouri 0.0 0.26 530 0.0 139.4 Montana n/a n/a n/a n/a n/a Nebraska 0.0 0.26 509 0.0 133.8 Nevada 0.0 0.26 45 0.0 11.9 New Hampshire 0.0 0.26 9 0.0 2.3 New Jersey 0.0 0.26 155 0.0 40.7 New Mexico 0.0 0.26 81 0.0 21.2 New York 0.0 0.26 979 0.0 257.4 North Carolina 0.0 0.26 229 0.0 60.2 North Dakota 0.0 0.26 558 0.0 146.6 Ohio 0.0 0.26 418 0.0 109.9 Oklahoma 0.0 0.26 941 0.0 247.5 Oregon 0.0 0.26 415 0.0 109.2 Pennsylvania 0.0 0.26 552 0.0 145.2 Rhode Island 0.0 0.26 11 0.0 2.9 South Carolina 0.0 0.26 218 0.0 57.2 South Dakota 0.0 0.26 241 0.0 63.5 Tennessee 0.0 0.26 327 0.0 85.9 Texas 0.0 0.26 1,323 0.0 348.0 Utah 0.0 0.26 120 0.0 31.6 Vermont n/a n/a n/a n/a n/a Virginia 0.0 0.26 280 0.0 73.7 Washington 0.0 0.26 854 0.0 224.6 West Virginia 0.0 0.26 42 0.0 10.9 Wisconsin 0.0 0.26 286 0.0 75.3 Wyoming 0.0 0.26 79 0.0 20.7 Puerto Rico 0.0 0.26 13 0.0 3.4 Other n/a n/a n/a n/a n/a Total, U.S. 28,980 0 7,620*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

1 The "n/a" states currently do not have a general fumi gation category, and based on the applicator number data and trends in recent years (CPARD, 2013), EPA assumes that these states are not likely to create a general fumigation category under the proposed rule.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third year, all commercial appl icators with general fumigation certification must be recertified. EPA assumes that one -third of these applicators will recertify in each year. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-time general fumigation applic ators in the regions is assumed to be constant over time, existing general fumigation applicators in jurisdictions without a category will only need to obtain certif ication once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Cert-0 3; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Alabama 0.13 0.00 0.13 Alaska 0.00 0.00 0.00 Arizona 0.50 0.00 0.50 Arkansas 0.35 0.00 0.35 California 8.12 0.00 8.12 Colorado 0.21 0.00 0.21 Connecticut 0.04 0.00 0.04 Delaware 0.33 0.00 0.33 Florida 12.71 0.00 12.71 Georgia 0.73 0.00 0.73 Hawaii 0.55 0.00 0.55 Idaho 0.79 0.00 0.79 Illinois 0.45 0.00 0.45 Indiana 0.87 0.00 0.87 Iowa 2.12 0.00 2.12 Kansas 1.37 0.00 1.37 Kentucky 1.14 0.00 1.14 Louisiana 0.38 0.000 0.38 Maine 0.17 0.00 0.17 Maryland 2.68 0.00 2.68 Massachusetts 0.07 0.00 0.07 Michigan 0.89 0.00 0.89 Minnesota 0.67 0.00 0.67 Mississippi 0.15 0.00 0.15 Missouri 0.95 0.00 0.95 Montana 0.00 0.00 0.00 Nebraska 0.91 0.00 0.91 Nevada 0.08 0.00 0.08 New Hampshire 0.02 0.00 0.02 New Jersey 0.28 0.00 0.28 New Mexico 0.14 0.00 0.14 New York 1.75 0.00 1.75 North Carolina 0.41 0.00 0.41 North Dakota 1.00 0.00 1.00 Ohio 0.75 0.00 0.75 Oklahoma 1.69 0.00 1.69 Oregon 0.74 0.00 0.74 Pennsylvania 0.99 0.00 0.99 Rhode Island 0.02 0.00 0.02*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

South Carolina 0.39 0.00 0.39 South Dakota 0.43 0.00 0.43 Tennessee 0.59 0.00 0.59 Texas 2.37 0.00 2.37 Utah 0.22 0.00 0.22 Vermont 0.00 0.00 0.00 Virginia 0.50 0.00 0.50 Washington 1.53 0.00 1.53 West Virginia 0.07 0.00 0.07 Wisconsin 0.51 0.00 0.51 Wyoming 0.14 0.00 0.14 Puerto Rico 0.02 0.00 0.02 Other 0.00 0.00 0.00

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Comm Cert-03; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 51.9 0.0 51.9 U.S. (annualized value) 5.9 0.0 5.9

*******************************************************************

5.1.2.11 Comm Cert-03: Establish commercial general fumigation category, Recertification by Exam or 6 hour CEUs/training every five years*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 2 - Calculate Costs per Existing Aerial Applicator of Potential Requirement Recertification requirement:

 All commercial applicators take 6 core-specific CEUs, plus 6 category-specific CEUs per category of certification held (o ption to retake initial exams for core and each category of certification)

 EPA assumes the option of exam is equi valent in effort to obtaining CEUs

 Period is 5 years ( freq i,t = 0.20)

Table: Comm Cert-03; Recertificatio n every five years; Step 2; Cost of Potential Requirement per Existing Fumigator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 21.49 6 0.20 25.79

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing commercial fumigator, both soil and non-soil fu migation, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing commerc ial fumigator, presented in Step 2.

 The number of existing commercial soil and non-soil fumigant applicators (N Xst Com Fum ) in each jurisdiction is obtained from the CPAR D database or extrapolated to other states (see Chapter 3.3.1)

 EPA assumes that commercial applicators do not engage in bo th soil and non-soil fumigation, given the differences in chemical s used and application methods. To the extent that some applicators e ngage in both activities, this implies that estimates of the baseline cost and the cost under the potentia l requirement are biased upward. The greater bias would in the estimate of the cost under the potential requirement because it includes all applicators whereas the baseline includes only the subset of applicators in jurisdictions with current fumigation categories. As a result, the estimate of incremental cost is also biased upward.

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of commercial fumi gant applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of commercial aerial applicators under the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis, but distributed over differe nt time frame. EPA*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

acknowledges that jurisdictions will have to revise their re gulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not change. Given the above: RC B = cost r,i, a B x N Xst Com Air RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Com Fum
Values are presented in the table below.

Comm Cert-03, Recertification of General Fumigation C ertification; Step 3; Total Annual Jurisdictional Baseline and Po tential Requirement Costs for Recertification of Commercial Fumigators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Com Fum RC B ($) RC P ($)
Alabama 132 26 68 8,985 8,985 Alaska 0 26 0 0 0 Arizona 92 26 259 23,712 23,712 Arkansas 29 26 178 5,101 5,101 California 22 26 4,183 92,714 107,872 Colorado 4 26 107 383 2,755 Connecticut 52 26 21 1,066 1,066 Delaware 144 26 166 23,879 23,879 Florida 36 26 6,564 236,279 236,279 Georgia 33 26 375 12,236 12,236 Hawaii 89 26 282 25,002 25,002 Idaho 74 26 404 29,909 29,909 Illinois 43 26 234 10,051 10,051 Indiana 180 26 447 80,270 80,270 Iowa 48 26 1,081 51,780 51,780 Kansas 0 26 708 0 18,248 Kentucky 0 26 586 0 15,121 Louisiana 0 26 194 0 4,996 Maine 0 26 87 0 2,252 Maryland 86 26 1,387 119,220 119,220 Massachusetts 72 26 38 2,746 2,746 Michigan 0 26 455 0 11,737 Minnesota 43 26 348 14,951 14,951 Mississippi 0 26 77 0 1,984 Missouri 0 26 489 0 12,617 Montana 0 26 0 0 0 Nebraska 0 26 471 0 12,147 Nevada 0 26 42 0 1,079 New Hampshire 52 26 8 413 413 New Jersey 45 26 143 6,490 6,490 New Mexico 219 26 75 16,333 16,333*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

New York 57 26 887 50,825 50,825 North Carolina 43 26 211 9,069 9,069 North Dakota 0 26 516 0 13,312 Ohio 0 26 386 0 9,946 Oklahoma 75 26 868 64,990 64,990 Oregon 0 26 379 0 9,774 Pennsylvania 36 26 511 18,303 18,303 Rhode Island 34 26 10 350 350 South Carolina 0 26 201 0 5,187 South Dakota 84 26 223 18,798 18,798 Tennessee 0 26 302 0 7,798 Texas 92 26 1,220 112,328 112,328 Utah 0 26 111 0 2,868 Vermont 0 26 0 0 0 Virginia 32 26 257 8,296 8,296 Washington 0 26 774 0 19,948 West Virginia 0 26 39 0 993 Wisconsin 34 26 263 9,049 9,049 Wyoming 0 26 72 0 1,859 Puerto Rico 0 26 12 0 300 Other Jurisdictions 0 26 0 0 0 Total, U.S. 26,718 1,053,527 1,223,224

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of recertification would remain constant ther eafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Comm Cert-03, Recertification of Gen eral Fumigation Certification; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 79 79 0 Alaska 0 0 0 Arizona 208 208 0 Arkansas 45 45 0 California 904 815 89 Colorado 17 3 14 Connecticut 9 9 0 Delaware 210 210 0 Florida 2,076 2,076 0 Georgia 108 108 0 Hawaii 220 220 0 Idaho 263 263 0 Illinois 88 88 0 Indiana 705 705 0 Iowa 455 455 0 Kansas 107 0 107 Kentucky 89 0 89 Louisiana 29 0 29 Maine 13 0 13 Maryland 1,047 1,047 0 Massachusetts 24 24 0 Michigan 69 0 69 Minnesota 131 131 0 Mississippi 12 0 12 Missouri 74 0 74 Montana 0 0 0 Nebraska 71 0 71 Nevada 6 0 6 New Hampshire 4 4 0 New Jersey 57 57 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

New Mexico 144 144 0 New York 447 447 0 North Carolina 80 80 0 North Dakota 78 0 78 Ohio 58 0 58 Oklahoma 571 571 0 Oregon 57 0 57 Pennsylvania 161 161 0 Rhode Island 3 3 0 South Carolina 30 0 30 South Dakota 165 165 0 Tennessee 46 0 46 Texas 987 987 0 Utah 17 0 17 Vermont 0 0 0 Virginia 73 73 0 Washington 117 0 117 West Virginia 6 0 6 Wisconsin 80 80 0 Wyoming 11 0 11 Puerto Rico 2 0 2 Other Jurisdictions 0 0 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm Cert-03, Recertification of Ge neral Fumigation Certification; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 10,253 9,256 997 U.S. (annualized value) 1,167 1,054 113 Per applicator incremental cost 0.004

State Costs of Administering Recertification Exam or Verifying Completion of Training for Application Method-Spec ific Categories

The options analyzed in this sec tion address the requirements for re certification of applicators in the application method-specific categories as they apply to the administ ration of recertification exam or verifying completion of requ ired training for recertification.

Commercial Applicator
Although there are currently no federal commercial applicator certification categories based on application method, some states do require certification in one or more of the application method-specific categories among those consider ed in the potential requirements. For commercial certification categories considered as potential requirements (aerial, chemigation, general fumigation, soil fumigation, and non-soil fu migation), there are di fferent jurisdictions that currently require each. Jurisdictions that do not require a partic ular category have zero baseline cost for certification or recertification fo r that category. Most of the jurisdictions that require a given category in the baseline also require recertification. EPA considers these recertification requirement s in compliance with the proposed requirements.
For commercial applicators, the jurisdictions th at have one or more of the application methodspecific categories require rece rtification by passing a writte n exam or by completing the required training. The proposed rule also requires recertification in thes e categories by passing a written exam or by completi ng the required training.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that commercial applicators co mpleted the required trai ning. EPA assumes that it takes a state official one hour to conduct ve rification of the traini ng requirements for 50 commercial applicators. Therefor e, whether a jurisdiction recertifi es by exam or training, its cost of administration is the same – one hour of a state official’s time for 50 commercial applicators.

5.1.2.12 Comm Cert-03: Administer New Commercial General Fumigation Category Exam or Training: Every 5 Years*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 1 - Calculate Baseline Costs

Jurisdictions that Require Recertification in General Fumigation Category in the Baseline

No jurisdiction currently require s certification or recertification in general fumigation.

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

 It takes a Jr. technician one hour to proctor a group of 50 examinees taking recertification

exam
Table: Comm Cert-03; Step 2; Cost per Applicator to Proctor Commercia l General Fumigation Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.004 0.16 Total 0.16

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N = number of commercial applicators cer tified in general fumigation category.

Given the above: RC B = cost r,i, a B x N RC t=3 P = cost r,i, P x N

Values are presented in the table below.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Comm Cert-03; Step 3; Total Annual Baseline and Potential Requi rement Costs for Proctoring General Fumigation Category Recertification Exam for Commercial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, P ($) N RC B ($) RC t=3 P ($) Alabama 0.0 0.16 74 0.0 12 Alaska n/a n/a n/a n/a n/a Arizona 0.0 0.16 281 0.0 44 Arkansas 0.0 0.16 193 0.0 31 California 0.0 0.16 4,530 0.0 715 Colorado 0.0 0.16 115 0.0 18 Connecticut 0.0 0.16 22 0.0 4 Delaware 0.0 0.16 181 0.0 29 Florida 0.0 0.16 7,092 0.0 1119 Georgia 0.0 0.16 407 0.0 64 Hawaii 0.0 0.16 306 0.0 48 Idaho 0.0 0.16 443 0.0 70 Illinois 0.0 0.16 253 0.0 40 Indiana 0.0 0.16 485 0.0 77 Iowa 0.0 0.16 1,181 0.0 186 Kansas 0.0 0.16 766 0.0 121 Kentucky 0.0 0.16 634 0.0 100 Louisiana 0.0 0.16 210 0.0 33 Maine 0.0 0.16 94 0.0 15 Maryland 0.0 0.16 1,498 0.0 236 Massachusetts 0.0 0.16 41 0.0 7 Michigan 0.0 0.16 496 0.0 78 Minnesota 0.0 0.16 376 0.0 59 Mississippi 0.0 0.16 83 0.0 13 Missouri 0.0 0.16 530 0.0 84 Montana n/a n/a n/a n/a n/a Nebraska 0.0 0.16 509 0.0 80 Nevada 0.0 0.16 45 0.0 7 New Hampshire 0.0 0.16 9 0.0 1 New Jersey 0.0 0.16 155 0.0 24 New Mexico 0.0 0.16 81 0.0 13 New York 0.0 0.16 979 0.0 154 North Carolina 0.0 0.16 229 0.0 36 North Dakota 0.0 0.16 558 0.0 88 Ohio 0.0 0.16 418 0.0 66*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Oklahoma 0.0 0.16 941 0.0 148 Oregon 0.0 0.16 415 0.0 66 Pennsylvania 0.0 0.16 552 0.0 87 Rhode Island 0.0 0.16 11 0.0 2 South Carolina 0.0 0.16 218 0.0 34 South Dakota 0.0 0.16 241 0.0 38 Tennessee 0.0 0.16 327 0.0 52 Texas 0.0 0.16 1,323 0.0 209 Utah 0.0 0.16 120 0.0 19 Vermont n/a n/a n/a n/a n/a Virginia 0.0 0.16 280 0.0 44 Washington 0.0 0.16 854 0.0 135 West Virginia 0.0 0.16 42 0.0 7 Wisconsin 0.0 0.16 286 0.0 45 Wyoming 0.0 0.16 79 0.0 12 Puerto Rico 0.0 0.16 13 0.0 2 Other n/a n/a n/a n/a n/a Total, U.S. 28,980 0 4,572

1 The "n/a" states currently do not have a general fumi gation category, and based on the applicator number data and trends in recent years (CPARD, 2013), EPA assumes that these states are not likely to create a general fumigation category under the proposed rule.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third year, all commercial appl icators with general fumigation certification must be recertified. EPA assumes that one -third of these applicators will recertify in each year. The PV of costs under the proposal, at a 3% discount rate, is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-time general fumigation applic ators in the regions is assumed to be constant over time, existing general fumigation applicators in jurisdictions without a category will only need to obtain certif ication once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Comm Cert-0 3; Steps 4 & 5; Jurisdictional Present Values of Potentia l Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 0.08 0.00 0.08 Alaska n/a 1 n/a n/a Arizona 0.30 0.00 0.30 Arkansas 0.21 0.00 0.21 California 4.87 0.00 4.87 Colorado 0.12 0.00 0.12 Connecticut 0.02 0.00 0.02 Delaware 0.20 0.00 0.20 Florida 7.63 0.00 7.63 Georgia 0.44 0.00 0.44 Hawaii 0.33 0.00 0.33 Idaho 0.48 0.00 0.48 Illinois 0.27 0.00 0.27 Indiana 0.52 0.00 0.52 Iowa 1.27 0.00 1.27 Kansas 0.82 0.00 0.82 Kentucky 0.68 0.00 0.68 Louisiana 0.23 0.00 0.23 Maine 0.10 0.00 0.10*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Maryland 1.61 0.00 1.61 Massachusetts 0.04 0.00 0.04 Michigan 0.53 0.00 0.53 Minnesota 0.40 0.00 0.40 Mississippi 0.09 0.00 0.09 Missouri 0.57 0.00 0.57 Montana n/a n/a n/a Nebraska 0.55 0.00 0.55 Nevada 0.05 0.00 0.05 New Hampshire 0.01 0.00 0.01 New Jersey 0.17 0.00 0.17 New Mexico 0.09 0.00 0.09 New York 1.05 0.00 1.05 North Carolina 0.25 0.00 0.25 North Dakota 0.60 0.00 0.60 Ohio 0.45 0.00 0.45 Oklahoma 1.01 0.00 1.01 Oregon 0.45 0.00 0.45 Pennsylvania 0.59 0.00 0.59 Rhode Island 0.01 0.00 0.01 South Carolina 0.23 0.00 0.23 South Dakota 0.26 0.00 0.26 Tennessee 0.35 0.00 0.35 Texas 1.42 0.00 1.42 Utah 0.13 0.00 0.13 Vermont n/a n/a n/a Virginia 0.30 0.00 0.30 Washington 0.92 0.00 0.92 West Virginia 0.04 0.00 0.04 Wisconsin 0.31 0.00 0.31 Wyoming 0.08 0.00 0.08 Puerto Rico 0.01 0.00 0.01 Other n/a n/a n/a

1 The "n/a" states currently do not have a general fumi gation category, and based on the applicator number data and trends in recent years (CPARD, 2013), EPA assumes that these states are not likely to create a general fumigation category under the proposed rule.

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Comm Cert-03; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 31.2 0.0 31.2 U.S. (annualized value) 3.5 0.0 3.5

5.1.2.13 Comm Cert-04: Establish commercial fumigation categories for Soil and for Non-soil fumigation, Recertification by Exam or 6 hour CEUs/training every three years

Cost estimates are identical to estimates for Comm Cert-03, general fumigation category, exam or 6 hours CEU every three years.

Data from CPARD (2014) provide the number of certific ations issued in different fumigation categories and EPA used that data to estimate th e number of certifications that would be issued in jurisdictions that do not currently require cert ification in fumigant ap plications. Whereas the cost estimates for recertificati on in a general fumigation category may be biased upward to the extent that an individual a pplicator might conduct both soil an d non-soil fumigations with one certification, the costs estimated above are unb iased for this option which requires separate certifications for the two categories. However, th e estimated cost per applicator may be biased downward since a single applicator ma y want to obtain two certifications.

5.1.2.14 Comm Cert-04: Administer commercial fumigation categories for Soil and for Nonsoil fumigation, Recertification by Exam or 6 hour CEUs/training every three years

Cost estimates are identical to estimates for Comm Cert-03, general fumigation category, exam or 6 hours CEU every three years.

5.1.2.15 Comm Cert-04: Establish commercial fumigation categories for Soil and for Non-soil fumigation, Recertification by Exam or 6 hour CEUs/training every five years*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Cost estimates are identical to estimates for Comm Cert-03, general fumigation category, exam or 6 hours CEU every five years.

Data from CPARD (2014) provide the number of certific ations issued in different fumigation categories and EPA used that data to estimate th e number of certifications that would be issued in jurisdictions that do not currently require cert ification in fumigant ap plications. Whereas the cost estimates for recertificati on in a general fumigation category may be biased upward to the extent that an individual a pplicator might conduct both soil an d non-soil fumigations with one certification, the costs estimated above are unb iased for this option which requires separate certifications for the two categories. However, th e estimated cost per applicator may be biased downward since a single applicator ma y want to obtain two certifications.

5.1.2.16 Comm Cert-04: Administer commercial fumigation categories for Soil and for Nonsoil fumigation, Recertification by Exam or 6 hour CEUs/training every five years

Cost estimates are identical to estimates for Comm Cert-03, general fumigation category, exam or 6 hours CEU every five years.


### 5.2 Private Applicators

5.2.1 General Competency

Step 1 - Calculate Baseline Costs per Existing Private Applicator

Note that the baseline cost estimate is identical for all options pertaining to the recertification of the commercial core and existing cate gories Private Recert -01, 02, -04, and -05.

State Baseline Requirements:

Private applicator core recertifi cation requirements are shown below, by state. States are divided into three groups, by type of requirement:

 training by CEUs or passing an exam (34 states)

 single-session training or pa ssing an exam (12 states, although one, Tennessee, does not offer exam option)

 passing an exam (4 states)

The cost estimate for each state is the expected annual cost per commercial applicator in the state, for recertification. Th e estimate is calculated as

ݐݏ݋ܿ ்௏௉,௜,௥ ஻ ݓ ൌ PVT ܪ ∙ ்௏௉,௜,௥ ஻ ݍ݁ݎ݂ ∙ ௧,௜

where cost r,i,PVT B is the baseline cost ( B ) per private applicator ( PVT ) for the recertification requirement ( r ) in jurisdiction ( i ), w PVT is the hourly wage rate (opportunity cost) for a*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

commercial applicator; H r,i,PVT B is the time, in hours, required to meet the recertification requirement; and freq i,t is the reciprocal of the recertificat ion time period and represents either the fraction of private applicator s obtaining recertificat ion (if, for example, by examination) or the fraction of Cumulative Educa tion Units (CEUs) an applicator obtains each year to meet the total number required.

 The national average wage rate for private a pplicators is used for all states (BLS, 2013a and 2013b). See Chapter 3.3.5

 Hours are based on state re quirements, detailed below

 Frequency is the reciprocal of the recertification time period.

States with training requirements (CEUs) with option of examination.

 EPA assumes that the effort to prepare for and ta ke an exam is equivalent to the effort in time spent in training.

Table: Step 1; Private Recertification Requirem ents for 34 States Requiring Training by CEUs, or, Exam

State CEUs Required Length of CEU Time (minutes) Time (hours) H r,i,PVT B Recertification Period (years) 1/ freq i,t Alaska 12 60 720 12 3 Arizona 3 50 150 2.5 1 California 6 60 360 6 2 Colorado 7 30 210 3.5 3 Connecticut 12 60 720 12 5 Delaware 3 50 150 2.5 3 Florida 8 50 400 6.7 4 Georgia 3 60 180 3 5 Hawaii 20 60 1200 20 5 Idaho 6 50 300 5 2 Indiana 3 120 360 6 5 Iowa 3 120 360 6 3 Maine 6 60 360 6 3 Maryland 4 30 120 2 3 Massachusetts 12 50 600 10 3 Michigan 16 60 960 16 3 Montana 3 120 360 6 5 Nevada 12 60 720 12 4 New Hampshire 15 60 900 15 5 New Jersey 16 30 480 8 5 New Mexico 5 60 300 5 5 New York 10 60 600 10 5 North Carolina 4 60 240 4 3 Ohio 5 60 300 5 3*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Oregon 16 60 960 16 5 Pennsylvania 6 30 180 3 3 Rhode Island 3 120 360 6 5 South Carolina 5 60 300 5 5 Texas 15 60 900 15 5 Utah 6 60 360 6 3 Vermont 8 60 480 8 5 Washington 10 50 500 8.3 5 West Virginia 10 30 300 5 3 Wyoming 8 60 480 8 5

Jurisdictions requiring a si ngle-session training with option of examination.

 EPA assumes that the effort to prepare for and ta ke an exam is equivalent to the effort in time spent in training.

Table: Step 1; Private Recertification Re quirements for 13 Jurisdictions Requiring Training by Single Training Session

State Length of Training Session (minutes) Time (hours) H r,i,PVT B Recertification Period (years) 1/ freq i,t Alabama 240 4 3 Arkansas 180 3 5 Kentucky 120 2 3 Louisiana 90 1.5 3 Minnesota 210 3.5 3 Mississippi 180 3 5 Missouri 180 3 5 Nebraska 150 2.5 3 North Dakota 240 4 3 South Dakota 180 3 5 Tennessee 1 120 2 3 Virginia 240 4 2 Puerto Rico 180 3 4 Other Jurisdictions 2 90 1.5 5
1 Tennessee has no exam option.
2 Requirements vary. As a conservative estimate, we take the least number of hours and the longest recertification period.

States requiring an examination.

 EPA assumes that a practicing certified applicator will spend, on average, 7 hours preparing for an exam (in contrast to a new applicator who would spend 11 hours preparing) and one hour taking the exam, for a total of 8 hours to obtain recertification.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Step 1; Private Recertification Requi rements for 4 States Requiring Exam Only

State Preparation time (hours) Exam time (hours) Time (hours) H r,i,PVT B Recertification Period (years) 1/ freq i,t Illinois 7 1 8 3 Kansas 7 1 8 5 Oklahoma 7 1 8 5 Wisconsin 7 1 8 5

Given this information, EPA estimates average annual per-applicator baseline cost for the recertification of private applicators as shown below.

Table: Step 1; Annual Baseline Cost per Privat e Applicator for Core Recertification

State Wage ($/hour) Time (hours) H r,i,PVT B Frequency (per year)

freq i,t Cost ($)
cost r,i, a B
Alabama 51.96 4 0.333 69.28 Alaska 51.96 12 0.333 207.84 Arizona 51.96 2.5 1.0 129.90 Arkansas 51.96 3 0.200 31.18 California 51.96 6 0.500 155.88 Colorado 51.96 3.5 0.333 60.62 Connecticut 51.96 12 0.200 124.70 Delaware 51.96 2.5 0.333 43.30 Florida 51.96 6.7 0.250 86.60 Georgia 51.96 3 0.200 31.18 Hawaii 51.96 20 0.200 207.84 Idaho 51.96 5 0.5 129.90 Illinois 51.96 8 0.333 138.56 Indiana 51.96 6 0.200 62.35 Iowa 51.96 6 0.333 103.92 Kansas 51.96 8 0.200 83.13 Kentucky 51.96 2 0.333 34.64 Louisiana 51.96 1.5 0.333 25.98 Maine 51.96 6 0.333 103.92 Maryland 51.96 2 0.333 34.64 Massachusetts 51.96 10 0.333 173.20 Michigan 51.96 16 0.333 277.12 Minnesota 51.96 3.5 0.333 60.62 Mississippi 51.96 3 0.200 31.18 Missouri 51.96 3 0.200 31.18 Montana 51.96 6 0.200 62.35*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Nebraska 51.96 2.5 0.333 43.30 Nevada 51.96 12 0.250 155.88 New Hampshire 51.96 15 0.200 155.88 New Jersey 51.96 8 0.200 83.13 New Mexico 51.96 5 0.200 51.96 New York 51.96 10 0.200 103.92 North Carolina 51.96 4 0.333 69.28 North Dakota 51.96 4 0.333 69.28 Ohio 51.96 5 0.333 86.60 Oklahoma 51.96 8 0.200 83.13 Oregon 51.96 16 0.200 166.27 Pennsylvania 51.96 3 0.333 51.96 Rhode Island 51.96 6 0.200 62.35 South Carolina 51.96 5 0.200 51.96 South Dakota 51.96 3 0.200 31.18 Tennessee 51.96 2 0.333 34.64 Texas 51.96 15 0.200 155.88 Utah 51.96 6 0.333 103.92 Vermont 51.96 8 0.200 83.13 Virginia 51.96 4 0.500 103.92 Washington 51.96 8.3 0.200 86.60 West Virginia 51.96 5 0.333 86.60 Wisconsin 51.96 8 0.200 83.13 Wyoming 51.96 8 0.200 83.13 Puerto Rico 51.96 3 0.250 38.97 Other Jurisdictions 51.96 1.5 0.200 15.59

5.2.1.1 Private Recert-01: Exam or 6 hour CEUs /training for recertification every three
years

Step 2 - Calculate Potential Requirement Costs per Private Applicator

Recertification requirement:

 All private applicators take 6 core-specific CEUs; option to retake initial exam/training

 EPA assumes that a practicing certified applicator will spend, on average, 7 hours preparing for an exam (in contrast to a new applicator who would spend 11 hours preparing) and one hour taking the exam, for a total of 8 hours to obtain recertification.

 Period is 3 years ( freq i,t = 0.333)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Recert-01; Applicators; Step 2; Potential Requirement Cost per Private Applic ator; Core Recertification, CEU or training

Action Wage ($/hour) Time (hours) Frequency / probability (per applicator, per year) Cost ($)
Core recertification 51.96 6 0.333 103.81

Table: Private Recert-01; Applicators; Step 2; Potential Requirement Cost per Private Applicator; Core Recertification, Exam

Action Wage ($/hour) Time (hours) Frequency / probability (per applicator, per year) Cost ($)
Core recertification 51.96 8 0.333 138.56

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing private applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing privat e applicator, presen ted in Step 2.

 The number of existing private applicators (N Xst Pvt ) in each jurisdiction is obtained from the CPARD database or extrapolated to other states (see Chapter 3.3.3)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of private applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of private appl icators under the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis as would be required under this option, but distributed over different time frame. EPA acknowledges that jurisdictions will have to revise their regulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not cha nge. For example, Nevada has established several categories for private a pplicators. Nevada recertifi cation requirements include 12 CEUs (60 minute), of which 2 CE Us must be cover core pestic ide safety, over a period of four years, for an average of 3 CEUs per ye ar. Nevada could revise requirements for recertification to require 9 CE Us over a period of three years, still averaging 3 CEUs per year. Over the three years, 6 CEUs could be designated to cover core materials, leaving three CEUs to meet the requirements for r ecertification in a category. The time required of the applicator is essentially unchanged.

Given the above:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

RC B = cost r,i, a B x N Xst Pvt RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Pvt
Values are presented in the table below.

Table: Private Recert-01; Applicators; Step 3; Total Annual Regional Baseline and Potential Requirement Costs for Core Recertification of Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Pvt RC B ($) RC P ($)
Alabama 69 104 5,402 374,257 561,385 Alaska 208 208 80 16,696 16,696 Arizona 130 130 389 50,487 50,487 Arkansas 31 104 19,512 608,308 2,027,693 California 156 156 16,979 2,646,649 2,646,649 Colorado 61 104 5,656 342,882 587,798 Connecticut 125 125 543 67,713 67,713 Delaware 43 104 676 29,285 70,284 Florida 87 104 3,704 320,719 384,862 Georgia 31 104 18,010 561,472 1,871,573 Hawaii 208 208 413 85,871 85,871 Idaho 130 130 3,474 451,309 451,309 Illinois 139 139 16,223 2,247,850 2,247,850 Indiana 62 104 12,208 761,182 1,268,637 Iowa 104 104 22,104 2,297,050 2,297,050 Kansas 83 139 13,833 1,149,976 1,916,627 Kentucky 35 104 10,733 371,769 1,115,306 Louisiana 26 104 7,241 188,127 752,509 Maine 104 104 1,099 114,241 114,241 Maryland 35 104 3,212 111,274 333,821 Massachusetts 173 173 1,045 181,049 181,049 Michigan 277 277 7,165 1,985,629 1,985,629 Minnesota 61 104 16,690 1,011,733 1,734,400 Mississippi 31 104 9,597 299,181 997,271 Missouri 31 104 19,499 607,877 2,026,255 Montana 62 104 6,033 376,154 626,923 Nebraska 43 104 21,052 911,517 2,187,641 Nevada 156 156 248 38,684 38,684 New Hampshire 156 156 469 73,107 73,107 New Jersey 83 104 1,569 130,397 162,996 New Mexico 52 104 2,478 128,729 257,458 New York 104 104 6,805 707,200 707,200 North Carolina 69 104 15,781 1,093,292 1,639,938 North Dakota 69 104 10,757 745,257 1,117,886 Ohio 87 104 14,524 1,257,775 1,509,330*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Oklahoma 83 139 12,295 1,022,170 1,703,617 Oregon 166 166 4,093 680,542 680,542 Pennsylvania 52 104 17,441 906,230 1,812,460 Rhode Island 62 104 180 11,223 18,705 South Carolina 52 104 5,745 298,506 597,012 South Dakota 31 104 14,543 453,391 1,511,304 Tennessee 35 104 10,522 364,488 1,093,465 Texas 156 156 40,170 6,261,662 6,261,662 Utah 104 104 1,384 143,823 143,823 Vermont 83 104 520 43,244 54,055 Virginia 104 104 5,531 574,808 574,808 Washington 87 104 13,148 1,138,572 1,366,286 West Virginia 87 104 1,198 103,745 124,494 Wisconsin 83 139 12,816 1,065,428 1,775,713 Wyoming 83 104 4,267 354,736 443,420 Puerto Rico 39 104 15,982 622,823 1,660,860 Other Jurisdictions 16 104 238 3,705 24,698 Total, U.S. 455,278 36,393,795 53,961,056

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of recertification would remain constant ther eafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Recert-01, Recertification of Private Certification; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 4,564 3,288 1,275 Alaska 147 147 0 Arizona 444 444 0 Arkansas 15,018 5,345 9,673 California 23,254 23,254 0 Colorado 4,682 3,013 1,669 Connecticut 595 595 0 Delaware 537 257 279 Florida 3,255 2,818 437 Georgia 13,862 4,933 8,929 Hawaii 754 754 0 Idaho 3,965 3,965 0 Illinois 19,750 19,750 0 Indiana 10,146 6,688 3,458 Iowa 20,182 20,182 0 Kansas 15,329 10,104 5,225 Kentucky 8,334 3,266 5,067 Louisiana 5,499 1,653 3,846 Maine 1,004 1,004 0 Maryland 2,494 978 1,517 Massachusetts 1,591 1,591 0 Michigan 17,446 17,446 0 Minnesota 13,814 8,889 4,925 Mississippi 7,386 2,629 4,758 Missouri 15,007 5,341 9,667 Montana 5,014 3,305 1,709 Nebraska 16,706 8,009 8,697 Nevada 340 340 0 New Hampshire 642 642 0 New Jersey 1,368 1,146 222 New Mexico 2,008 1,131 877 New York 6,214 6,214 0 North Carolina 13,331 9,606 3,726 North Dakota 9,087 6,548 2,540*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Ohio 12,765 11,051 1,714 Oklahoma 13,625 8,981 4,644 Oregon 5,979 5,979 0 Pennsylvania 14,138 7,962 6,176 Rhode Island 150 99 51 South Carolina 4,657 2,623 2,034 South Dakota 11,193 3,984 7,210 Tennessee 8,171 3,202 4,968 Texas 55,016 55,016 0 Utah 1,264 1,264 0 Vermont 454 380 74 Virginia 5,050 5,050 0 Washington 11,556 10,004 1,552 West Virginia 1,053 912 141 Wisconsin 14,202 9,361 4,841 Wyoming 3,721 3,117 604 Puerto Rico 12,547 5,472 7,074 Other Jurisdictions 176 33 143

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Recert- 03 01 , Recertification of Privat e Certification; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 439,485 319,760 119,725 U.S. (annualized value) 50,020 36,394 13,627 Per applicator incremental cost 0.030*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

State Costs of Administering R ecertification Exam or Verifying Completion of Recertification Training for General Competency

The options analyzed in this sec tion address the requirements for re certification of applicators in the core competency as they apply to the admi nistration of recertifica tion exam or verifying completion of required trai ning for recertification.

Private Applicator
Currently, federal standards regardin g recertification of pr ivate applicators require states to have process to assure continued competency. Howeve r, there are no standards for the process or frequency of recertification.
States currently have a variety of options for recertification, w ith recertification period ranging from 1-6 years.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that private applicators completed the required training. EPA assumes that it takes a state official one hour to conduct verification of the trai ning requirements for 50 private applicators. Therefore, whet her a jurisdiction recertifies by exam or training, its cost of administration is the same – one hour of a stat e official’s time for 50 private applicators.

5.2.1.2 Private Recert-01: Administer Exam or 6- hour Training for Private Core Competency Recertification: Every 3 Years

Step 1 - Calculate Baseline Costs

 In the baseline, 4 states (IL, WI, KS, & OK) recertify by exam. Of these, KS & OK do not proctor recertification ex am and the other two states (IL & WI) proctor their recertification exam.

 The remaining 46 states, Puerto Rico , & Other recertify by CEU training.

 The wage rate for a Jr Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Private Recert-01; Step 1; Baseline Cost per Applicator to Proctor Priv ate Core Recertification Exam or Training

Proctored

exam Recertify by training Wage ($/hour) Time (hours) Recert cycle frequency Cost ($)

Alabama N/A Y 39.44 4.0 0.3 0.0 1.1 Alaska N/A Y 39.44 12.0 0.3 0.0 3.2 Arizona N/A Y 39.44 2.5 1.0 0.0 2.0 Arkansas N/A Y 39.44 3.0 0.2 0.0 0.5*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

California N/A Y 39.44 6.0 0.5 0.0 2.4 Colorado N/A Y 39.44 3.5 0.3 0.0 0.9 Connecticut N/A Y 39.44 12.0 0.2 0.0 1.9 Delaware N/A Y 39.44 2.5 0.3 0.0 0.7 Florida N/A Y 39.44 6.7 0.3 0.0 1.3 Georgia N/A Y 39.44 3.0 0.2 0.0 0.5 Hawaii N/A Y 39.44 20.0 0.2 0.0 3.2 Idaho N/A Y 39.44 5.0 0.5 0.0 2.0 Illinois Y N 39.44 1.0 0.3 0.0 0.3 Indiana N/A Y 39.44 6.0 0.2 0.0 0.9 Iowa N/A Y 39.44 6.0 0.3 0.0 1.6 Kansas N N 0.0 0.0 Kentucky N/A Y 39.44 2.0 0.3 0.0 0.5 Louisiana N/A Y 39.44 1.5 0.3 0.0 0.4 Maine N/A Y 39.44 6.0 0.3 0.0 1.6 Maryland N/A Y 39.44 2.0 0.3 0.0 0.5 Massachusetts N/A Y 39.44 10.0 0.3 0.0 2.6 Michigan N/A Y 39.44 16.0 0.3 0.0 4.2 Minnesota N/A Y 39.44 3.5 0.3 0.0 0.9 Mississippi N/A Y 39.44 3.0 0.2 0.0 0.5 Missouri N/A Y 39.44 3.0 0.2 0.0 0.5 Montana N/A Y 39.44 6.0 0.2 0.0 0.9 Nebraska N/A Y 39.44 2.5 0.3 0.0 0.7 Nevada N/A Y 39.44 12.0 0.3 0.0 2.4 New Hampshire N/A Y 39.44 15.0 0.2 0.0 2.4 New Jersey N/A Y 39.44 8.0 0.2 0.0 1.3 New Mexico N/A Y 39.44 5.0 0.2 0.0 0.8 New York N/A Y 39.44 10.0 0.2 0.0 1.6 North Carolina N/A Y 39.44 4.0 0.3 0.0 1.1 North Dakota N/A Y 39.44 4.0 0.3 0.0 1.1 Ohio N/A Y 39.44 5.0 0.3 0.0 1.3 Oklahoma N N 0.0 0.0 Oregon N/A Y 39.44 16.0 0.2 0.0 2.5 Pennsylvania N/A Y 39.44 3.0 0.3 0.0 0.8 Rhode Island N/A Y 39.44 6.0 0.2 0.0 0.9 South Carolina N/A Y 39.44 5.0 0.2 0.0 0.8 South Dakota N/A Y 39.44 3.0 0.2 0.0 0.5 Tennessee N/A Y 39.44 2.0 0.3 0.0 0.5 Texas N/A Y 39.44 15.0 0.2 0.0 2.4*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Utah N/A Y 39.44 6.0 0.3 0.0 1.6 Vermont N/A Y 39.44 8.0 0.2 0.0 1.3 Virginia N/A Y 39.44 4.0 0.5 0.0 1.6 Washington State N/A Y 39.44 8.3 0.2 0.0 1.3 West Virginia N/A Y 39.44 5.0 0.3 0.0 1.3 Wisconsin Y N 39.44 1.0 0.2 0.0 0.2 Wyoming N/A Y 39.44 8.0 0.2 0.0 1.3 Puerto Rico N/A Y 39.44 3.0 0.3 0.0 0.6 Other N/A Y 39.44 1.5 0.2 0.0 0.2

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Private Recert-01; Step 2; Cost per Applicator to Procto r Private Core Recertification Exam

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.007 0.26 Total 0.26

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N = number of private applicators ce rtified in aerial category.

Given the above: RC B = cost r,i, a B x N RC t=3 P = cost r,i, P x N*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Values are presented in the table below.

Table: Private Recert-01; Step 3; Total Annual Baseline and Potential Require ment Costs for Proctoring Private Core Recertification Exam

Jurisdiction cost r,i, a B ($) cost r,i, P ($) N RC B ($) RC t=3 P ($) Alabama 1.05 0.26 5,963 6,271 6,271 Alaska 3.16 0.26 89 281 281 Arizona 1.97 0.26 473 932 932 Arkansas 0.47 0.26 20,997 9,938 9,938 California 2.37 0.26 18,601 44,018 44,018 Colorado 0.92 0.26 6,049 5,567 5,567 Connecticut 1.89 0.26 564 1,067 1,067 Delaware 0.66 0.26 746 491 491 Florida 1.31 0.26 4,044 5,316 5,316 Georgia 0.47 0.26 19,679 9,314 9,314 Hawaii 3.16 0.26 444 1,401 1,401 Idaho 1.97 0.26 3,613 7,125 7,125 Illinois 0.26 0.26 17,297 4,548 4,548 Indiana 0.95 0.26 13,004 12,309 12,309 Iowa 1.58 0.26 22,977 36,249 36,249 Kansas 0.00 0.26 14,939 0 3,928 Kentucky 0.53 0.26 13,304 6,996 6,996 Louisiana 0.39 0.26 7,616 3,004 3,004 Maine 1.58 0.26 1,175 1,854 1,854 Maryland 0.53 0.26 3,320 1,746 1,746 Massachusetts 2.63 0.26 1,130 2,970 2,970 Michigan 4.21 0.26 7,662 32,233 32,233 Minnesota 0.92 0.26 17,359 15,975 15,975 Mississippi 0.47 0.26 10,941 5,178 5,178 Missouri 0.47 0.26 21,127 9,999 9,999 Montana 0.95 0.26 6,291 5,955 5,955 Nebraska 0.66 0.26 21,818 14,342 14,342 Nevada 2.37 0.26 296 701 701 New Hampshire 2.37 0.26 502 1,187 1,187 New Jersey 1.26 0.26 1,768 2,231 2,231 New Mexico 0.79 0.26 2,702 2,132 2,132 New York 1.58 0.26 7,051 11,124 11,124 North Carolina 1.05 0.26 16,251 17,091 17,091 North Dakota 1.05 0.26 11,680 12,285 12,285*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Ohio 1.31 0.26 14,803 19,461 19,461 Oklahoma 0.00 0.26 13,858 0 3,644 Oregon 2.52 0.26 4,278 10,799 10,799 Pennsylvania 0.79 0.26 18,107 14,282 14,282 Rhode Island 0.95 0.26 186 176 176 South Carolina 0.79 0.26 6,477 5,109 5,109 South Dakota 0.47 0.26 16,694 7,901 7,901 Tennessee 0.53 0.26 10,927 5,746 5,746 Texas 2.37 0.26 43,201 102,231 102,231 Utah 1.58 0.26 1,663 2,624 2,624 Vermont 1.26 0.26 562 709 709 Virginia 1.58 0.26 6,395 10,088 10,088 Washington 1.31 0.26 13,817 18,165 18,165 West Virginia 1.31 0.26 1,277 1,679 1,679 Wisconsin 0.16 0.26 13,886 2,191 3,651 Wyoming 1.26 0.26 4,655 5,875 5,875 Puerto Rico 0.59 0.26 16,728 9,896 9,896 Other 0.24 0.26 333 79 88 Total, U.S. 489,317 508,838 517,879

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the thir d year, all private a pplicators with aerial certification must be recertified. EPA assumes that one-third of these app licators will recertify in each year. The PV of costs under the proposal, at a 3% discount rate, is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-time aer ial applicators in the regions is assumed to be constant over time, existing aerial applicat ors in jurisdictions without a category will only need to obtain certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Recert-01; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 55 55 0 Alaska 2 2 0 Arizona 8 8 0 Arkansas 87 87 0 California 387 387 0 Colorado 49 49 0 Connecticut 9 9 0 Delaware 4 4 0 Florida 47 47 0 Georgia 82 82 0 Hawaii 12 12 0 Idaho 63 63 0 Illinois 40 40 0 Indiana 108 108 0 Iowa 318 318 0 Kansas 27 0 27 Kentucky 61 61 0 Louisiana 26 26 0 Maine 16 16 0 Maryland 15 15 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Massachusetts 26 26 0 Michigan 283 283 0 Minnesota 140 140 0 Mississippi 45 45 0 Missouri 88 88 0 Montana 52 52 0 Nebraska 126 126 0 Nevada 6 6 0 New Hampshire 10 10 0 New Jersey 20 20 0 New Mexico 19 19 0 New York 98 98 0 North Carolina 150 150 0 North Dakota 108 108 0 Ohio 171 171 0 Oklahoma 25 0 25 Oregon 95 95 0 Pennsylvania 125 125 0 Rhode Island 2 2 0 South Carolina 45 45 0 South Dakota 69 69 0 Tennessee 50 50 0 Texas 898 898 0 Utah 23 23 0 Vermont 6 6 0 Virginia 89 89 0 Washington 160 160 0 West Virginia 15 15 0 Wisconsin 29 19 10 Wyoming 52 52 0 Puerto Rico 87 87 0 Other 1 1 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Private Recert-01; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 4,532 4,471 62 U.S. (annualized value) 516 509 7

5.2.1.3 Private Recert-02: Exam or 8 hour CEUs /training for recertification every three
years

Step 2 - Calculate Potential Requirement Costs per Private Applicator

Recertification requirement:

 All private applicators take 8 core-specific CEUs; option to retake initial exam/training

 EPA assumes that a practicing certified applicator will spend, on average, 7 hours preparing for an exam (in contrast to a new applicator who would spend 11 hours preparing) and one hour taking the exam, for a total of 8 hours to obtain recertification.

 Period is 3 years ( freq i,t = 0.333)

Table: Private Recert-02; Applicators; Step 2; Potential Requirement Cost per Private Applic ator; Core Recertification, CEU or training

Action Wage ($/hour) Time (hours) Frequency / probability (per applicator, per year) Cost ($)
Core recertification 51.96 8 0.333 138.56

Table: Private Recert-02; Applicators; Step 2; Potential Requirement Cost per Private Applicator; Core Recertification, Exam

Action Wage ($/hour) Time (hours) Frequency / probability (per applicator, per year) Cost ($)
Core recertification 51.96 8 0.333 138.56

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing private applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing privat e applicator, presen ted in Step 2.

 The number of existing private applicators (N Xst Pvt ) in each jurisdiction is obtained from the CPARD database or extrapolated to other states (see Chapter 3.3.3)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of private applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of private appl icators under the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis as would be required under this option, but distributed over different time frame. EPA acknowledges that jurisdictions will have to revise their regulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not change.

Given the above: RC B = cost r,i, a B x N Xst Pvt RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Pvt
Values are presented in the table below.

Table: Private Recert-02; Applicators; Step 3; Total Annual Regional Baseline and Potential Requirement Costs for Core Recertification of Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Pvt RC B ($) RC P ($)
Alabama 69 139 5,402 374,257 748,514 Alaska 208 139 80 16,696 16,696 Arizona 130 139 389 50,487 53,853 Arkansas 31 139 19,512 608,308 2,703,590 California 156 139 16,979 2,646,649 2,646,649 Colorado 61 139 5,656 342,882 783,730 Connecticut 125 139 543 67,713 75,237 Delaware 43 139 676 29,285 93,711 Florida 87 139 3,704 320,719 513,150 Georgia 31 139 18,010 561,472 2,495,430 Hawaii 208 139 413 85,871 85,871 Idaho 130 139 3,474 451,309 481,397*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Illinois 139 139 16,223 2,247,850 2,247,850 Indiana 62 139 12,208 761,182 1,691,516 Iowa 104 139 22,104 2,297,050 3,062,733 Kansas 83 139 13,833 1,149,976 1,916,627 Kentucky 35 139 10,733 371,769 1,487,074 Louisiana 26 139 7,241 188,127 1,003,345 Maine 104 139 1,099 114,241 152,321 Maryland 35 139 3,212 111,274 445,095 Massachusetts 173 139 1,045 181,049 181,049 Michigan 277 139 7,165 1,985,629 1,985,629 Minnesota 61 139 16,690 1,011,733 2,312,533 Mississippi 31 139 9,597 299,181 1,329,695 Missouri 31 139 19,499 607,877 2,701,674 Montana 62 139 6,033 376,154 835,897 Nebraska 43 139 21,052 911,517 2,916,854 Nevada 156 139 248 38,684 38,684 New Hampshire 156 139 469 73,107 73,107 New Jersey 83 139 1,569 130,397 217,328 New Mexico 52 139 2,478 128,729 343,278 New York 104 139 6,805 707,200 942,934 North Carolina 69 139 15,781 1,093,292 2,186,584 North Dakota 69 139 10,757 745,257 1,490,515 Ohio 87 139 14,524 1,257,775 2,012,440 Oklahoma 83 139 12,295 1,022,170 1,703,617 Oregon 166 139 4,093 680,542 680,542 Pennsylvania 52 139 17,441 906,230 2,416,614 Rhode Island 62 139 180 11,223 24,940 South Carolina 52 139 5,745 298,506 796,016 South Dakota 31 139 14,543 453,391 2,015,072 Tennessee 35 139 10,522 364,488 1,457,954 Texas 156 139 40,170 6,261,662 6,261,662 Utah 104 139 1,384 143,823 191,764 Vermont 83 139 520 43,244 72,073 Virginia 104 139 5,531 574,808 766,411 Washington 87 139 13,148 1,138,572 1,821,715 West Virginia 87 139 1,198 103,745 165,993 Wisconsin 83 139 12,816 1,065,428 1,775,713 Wyoming 83 139 4,267 354,736 591,227 Puerto Rico 39 139 15,982 622,823 2,214,481 Other Jurisdictions 16 139 238 3,705 32,931 Total, U.S. 455,278 36,393,795 65,261,316

Step 4 - Calculate the PV of Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of recertification would remain constant ther eafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Recert-02, Recertification of Private Certification; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 5,839 3,288 2,551 Alaska 147 147 0 Arizona 467 444 23 Arkansas 19,625 5,345 14,280 California 23,254 23,254 0 Colorado 6,017 3,013 3,004 Connecticut 646 595 51 Delaware 696 257 439 Florida 4,129 2,818 1,311 Georgia 18,114 4,933 13,180 Hawaii 754 754 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Idaho 4,170 3,965 205 Illinois 19,750 19,750 0 Indiana 13,028 6,688 6,340 Iowa 25,400 20,182 5,218 Kansas 15,329 10,104 5,225 Kentucky 10,867 3,266 7,601 Louisiana 7,209 1,653 5,556 Maine 1,263 1,004 260 Maryland 3,253 978 2,275 Massachusetts 1,591 1,591 0 Michigan 17,446 17,446 0 Minnesota 17,754 8,889 8,865 Mississippi 9,652 2,629 7,023 Missouri 19,611 5,341 14,270 Montana 6,438 3,305 3,133 Nebraska 21,676 8,009 13,667 Nevada 340 340 0 New Hampshire 642 642 0 New Jersey 1,738 1,146 592 New Mexico 2,593 1,131 1,462 New York 7,820 6,214 1,607 North Carolina 17,057 9,606 7,451 North Dakota 11,627 6,548 5,079 Ohio 16,194 11,051 5,143 Oklahoma 13,625 8,981 4,644 Oregon 5,979 5,979 0 Pennsylvania 18,256 7,962 10,294 Rhode Island 192 99 93 South Carolina 6,013 2,623 3,391 South Dakota 14,627 3,984 10,643 Tennessee 10,655 3,202 7,452 Texas 55,016 55,016 0 Utah 1,590 1,264 327 Vermont 576 380 196 Virginia 6,356 5,050 1,306 Washington 14,659 10,004 4,656 West Virginia 1,336 912 424 Wisconsin 14,202 9,361 4,841 Wyoming 4,728 3,117 1,612 Puerto Rico 16,320 5,472 10,848 Other Jurisdictions 232 33 199*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Recert-02, Recertification of Private Certification; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 516,499 319,760 196,739 U.S. (annualized value) 58,786 36,394 22,392 Per applicator incremental cost 0.049

State Costs of Administering R ecertification Exam or Verifying Completion of Recertification Training for General Competency

The options analyzed in this sec tion address the requirements for re certification of applicators in the core competency as they apply to the admi nistration of recertifica tion exam or verifying completion of required trai ning for recertification.

Private Applicator
Currently, federal standards regardin g recertification of pr ivate applicators require states to have process to assure continued competency. Howeve r, there are no standards for the process or frequency of recertification.
States currently have a variety of options for recertification, w ith recertification period ranging from 1-6 years.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that private applicators completed the required training. EPA assumes that it takes a state official one hour to conduct verification of the trai ning requirements for 50 private*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

applicators. Therefore, whet her a jurisdiction recertifies by exam or training, its cost of administration is the same – one hour of a stat e official’s time for 50 private applicators.

5.2.1.4 Private Recert-02: Administer Exam or 8- hour Training for Private Core Competency Recertification: Every 3 Years

The costs are identical to Private Recert-01 b ecause proctoring a group of 50 examinees takes one hour of Jr technician’s time whether it is a 6-hour or 8-hour exam. Similarly, it takes a Jr technician one hour to verify completion of trai ning for 50 applicators wh ether it is a 6-hour or 8-hour training.

5.2.1.5 Private Recert-04: Exam or 6 hour CEUs/tr aining for recertification every five years

Step 2 - Calculate Potential Requirement Costs per Private Applicator

Recertification requirement:

 All private applicators take 6 core-specific CEUs; option to retake initial exam/training

 EPA assumes that a practicing certified applicator will spend, on average, 7 hours preparing for an exam (in contrast to a new applicator who would spend 11 hours preparing) and one hour taking the exam, for a total of 8 hours to obtain recertification.

 Period is 5 years ( freq i,t = 0.20)

Table: Private Recert-04; Applicators; Step 2; Potential Requirement Cost per Private Applic ator; Core Recertification, CEU or training

Action Wage ($/hour) Time (hours) Frequency / probability (per applicator, per year) Cost ($)
Core recertification 51.96 6 0.20 62.35

Table: Private Recert-04; Applicators; Step 2; Potential Requirement Cost per Private Applicator; Core Recertification, Exam

Action Wage ($/hour) Time (hours) Frequency / probability (per applicator, per year) Cost ($)
Core recertification 51.96 8 0.20 83.13

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing private applicator, presented in Step 1.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing privat e applicator, presen ted in Step 2.

 The number of existing private applicators (N Xst Pvt ) in each jurisdiction is obtained from the CPARD database (see Chapter 3.3.3)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of private applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of private appl icators under the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis as would be required under this option, but distributed over different time frame. EPA acknowledges that jurisdictions will have to revise their regulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not change.

Given the above: RC B = cost r,i, a B x N Xst Pvt RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Pvt
Values are presented in the table below.

Table: Private Recert-04; Applicators; Step 3; Total Annual Regional Baseline and Potential Requirement Costs for Core Recertification of Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P

($) N Xst Pvt RC B ($) RC P ($)
Alabama 69 62 5,402 374,257 374,257 Alaska 208 62 80 16,696 16,696 Arizona 130 62 389 50,487 50,487 Arkansas 31 62 19,512 608,308 1,216,616 California 156 62 16,979 2,646,649 2,646,649 Colorado 61 62 5,656 342,882 352,679 Connecticut 125 62 543 67,713 67,713 Delaware 43 62 676 29,285 42,170 Florida 87 62 3,704 320,719 320,719 Georgia 31 62 18,010 561,472 1,122,944 Hawaii 208 62 413 85,871 85,871 Idaho 130 62 3,474 451,309 451,309 Illinois 139 83 16,223 2,247,850 2,247,850 Indiana 62 62 12,208 761,182 761,182 Iowa 104 62 22,104 2,297,050 2,297,050 Kansas 83 83 13,833 1,149,976 1,149,976*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Kentucky 35 62 10,733 371,769 669,183 Louisiana 26 62 7,241 188,127 451,505 Maine 104 62 1,099 114,241 114,241 Maryland 35 62 3,212 111,274 200,293 Massachusetts 173 62 1,045 181,049 181,049 Michigan 277 62 7,165 1,985,629 1,985,629 Minnesota 61 62 16,690 1,011,733 1,040,640 Mississippi 31 62 9,597 299,181 598,363 Missouri 31 62 19,499 607,877 1,215,753 Montana 62 62 6,033 376,154 376,154 Nebraska 43 62 21,052 911,517 1,312,584 Nevada 156 62 248 38,684 38,684 New Hampshire 156 62 469 73,107 73,107 New Jersey 83 62 1,569 130,397 130,397 New Mexico 52 62 2,478 128,729 154,475 New York 104 62 6,805 707,200 707,200 North Carolina 69 62 15,781 1,093,292 1,093,292 North Dakota 69 62 10,757 745,257 745,257 Ohio 87 62 14,524 1,257,775 1,257,775 Oklahoma 83 83 12,295 1,022,170 1,022,170 Oregon 166 62 4,093 680,542 680,542 Pennsylvania 52 62 17,441 906,230 1,087,476 Rhode Island 62 62 180 11,223 11,223 South Carolina 52 62 5,745 298,506 358,207 South Dakota 31 62 14,543 453,391 906,783 Tennessee 35 62 10,522 364,488 656,079 Texas 156 62 40,170 6,261,662 6,261,662 Utah 104 62 1,384 143,823 143,823 Vermont 83 62 520 43,244 43,244 Virginia 104 62 5,531 574,808 574,808 Washington 87 62 13,148 1,138,572 1,138,572 West Virginia 87 62 1,198 103,745 103,745 Wisconsin 83 83 12,816 1,065,428 1,065,428 Wyoming 83 62 4,267 354,736 354,736 Puerto Rico 39 62 15,982 622,823 996,516 Other Jurisdictions 16 62 238 3,705 14,819 Total, U.S. 455,278 36,393,795 40,969,584

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of recertification would remain constant ther eafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Recert-04, Recertification of Private Certification; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 3,288 3,288 0 Alaska 147 147 0 Arizona 444 444 0 Arkansas 9,490 5,345 4,146 California 23,254 23,254 0 Colorado 3,079 3,013 67 Connecticut 595 595 0 Delaware 345 257 88 Florida 2,818 2,818 0 Georgia 8,760 4,933 3,827 Hawaii 754 754 0 Idaho 3,965 3,965 0 Illinois 19,750 19,750 0 Indiana 6,688 6,688 0 Iowa 20,182 20,182 0 Kansas 10,104 10,104 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Kentucky 5,293 3,266 2,027 Louisiana 3,448 1,653 1,795 Maine 1,004 1,004 0 Maryland 1,584 978 607 Massachusetts 1,591 1,591 0 Michigan 17,446 17,446 0 Minnesota 9,086 8,889 197 Mississippi 4,668 2,629 2,039 Missouri 9,484 5,341 4,143 Montana 3,305 3,305 0 Nebraska 10,742 8,009 2,733 Nevada 340 340 0 New Hampshire 642 642 0 New Jersey 1,146 1,146 0 New Mexico 1,306 1,131 175 New York 6,214 6,214 0 North Carolina 9,606 9,606 0 North Dakota 6,548 6,548 0 Ohio 11,051 11,051 0 Oklahoma 8,981 8,981 0 Oregon 5,979 5,979 0 Pennsylvania 9,197 7,962 1,235 Rhode Island 99 99 0 South Carolina 3,030 2,623 407 South Dakota 7,074 3,984 3,090 Tennessee 5,190 3,202 1,987 Texas 55,016 55,016 0 Utah 1,264 1,264 0 Vermont 380 380 0 Virginia 5,050 5,050 0 Washington 10,004 10,004 0 West Virginia 912 912 0 Wisconsin 9,361 9,361 0 Wyoming 3,117 3,117 0 Puerto Rico 8,019 5,472 2,547 Other Jurisdictions 108 33 76

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Recert-04, Recertification of Private Certification; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 350,945 319,760 31,185 U.S. (annualized value) 39,943 36,394 3,549 Per applicator incremental cost 0.008

State Costs of Administering R ecertification Exam or Verifying Completion of Recertification Training for General Competency

The options analyzed in this sec tion address the requirements for re certification of applicators in the core competency as they apply to the admi nistration of recertifica tion exam or verifying completion of required trai ning for recertification.

Private Applicator
Currently, federal standards regardin g recertification of pr ivate applicators require states to have process to assure continued competency. Howeve r, there are no standards for the process or frequency of recertification.
States currently have a variety of options for recertification, w ith recertification period ranging from 1-6 years.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that private applicators completed the required training. EPA assumes that it takes a state official one hour to conduct verification of the trai ning requirements for 50 private applicators. Therefore, whet her a jurisdiction recertifies by exam or training, its cost of administration is the same – one hour of a stat e official’s time for 50 private applicators.

5.2.1.6 Private Recert-04: Administer Exam or 6- hour Training for Private Core Competency Recertification: Every 5 Years*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 1 - Calculate Baseline Costs

 In the baseline, 4 states (IL, WI, KS, & OK) recertify by exam. Of these, KS & OK do not proctor recertification ex am and the other two states (IL & WI) proctor their recertification exam.

 The remaining 46 states, Puerto Rico , & Other recertify by CEU training.

 The wage rate for a Jr Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Private Recert-04; Step 1; Baseline Cost per Applicator to Proctor Priv ate Core Recertification Exam or Training

Proctored

exam Recertify by training Wage ($/hour) Time (hours) Recert cycle frequency Cost ($)

Alabama N/A Y 39.44 4.0 0.3 0.0 1.1 Alaska N/A Y 39.44 12.0 0.3 0.0 3.2 Arizona N/A Y 39.44 2.5 1.0 0.0 2.0 Arkansas N/A Y 39.44 3.0 0.2 0.0 0.5 California N/A Y 39.44 6.0 0.5 0.0 2.4 Colorado N/A Y 39.44 3.5 0.3 0.0 0.9 Connecticut N/A Y 39.44 12.0 0.2 0.0 1.9 Delaware N/A Y 39.44 2.5 0.3 0.0 0.7 Florida N/A Y 39.44 6.7 0.3 0.0 1.3 Georgia N/A Y 39.44 3.0 0.2 0.0 0.5 Hawaii N/A Y 39.44 20.0 0.2 0.0 3.2 Idaho N/A Y 39.44 5.0 0.5 0.0 2.0 Illinois Y N 39.44 1.0 0.3 0.0 0.3 Indiana N/A Y 39.44 6.0 0.2 0.0 0.9 Iowa N/A Y 39.44 6.0 0.3 0.0 1.6 Kansas N N 0.0 0.0 Kentucky N/A Y 39.44 2.0 0.3 0.0 0.5 Louisiana N/A Y 39.44 1.5 0.3 0.0 0.4 Maine N/A Y 39.44 6.0 0.3 0.0 1.6 Maryland N/A Y 39.44 2.0 0.3 0.0 0.5 Massachusetts N/A Y 39.44 10.0 0.3 0.0 2.6 Michigan N/A Y 39.44 16.0 0.3 0.0 4.2 Minnesota N/A Y 39.44 3.5 0.3 0.0 0.9 Mississippi N/A Y 39.44 3.0 0.2 0.0 0.5 Missouri N/A Y 39.44 3.0 0.2 0.0 0.5 Montana N/A Y 39.44 6.0 0.2 0.0 0.9 Nebraska N/A Y 39.44 2.5 0.3 0.0 0.7*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Nevada N/A Y 39.44 12.0 0.3 0.0 2.4 New Hampshire N/A Y 39.44 15.0 0.2 0.0 2.4 New Jersey N/A Y 39.44 8.0 0.2 0.0 1.3 New Mexico N/A Y 39.44 5.0 0.2 0.0 0.8 New York N/A Y 39.44 10.0 0.2 0.0 1.6 North Carolina N/A Y 39.44 4.0 0.3 0.0 1.1 North Dakota N/A Y 39.44 4.0 0.3 0.0 1.1 Ohio N/A Y 39.44 5.0 0.3 0.0 1.3 Oklahoma N N 0.0 0.0 Oregon N/A Y 39.44 16.0 0.2 0.0 2.5 Pennsylvania N/A Y 39.44 3.0 0.3 0.0 0.8 Rhode Island N/A Y 39.44 6.0 0.2 0.0 0.9 South Carolina N/A Y 39.44 5.0 0.2 0.0 0.8 South Dakota N/A Y 39.44 3.0 0.2 0.0 0.5 Tennessee N/A Y 39.44 2.0 0.3 0.0 0.5 Texas N/A Y 39.44 15.0 0.2 0.0 2.4 Utah N/A Y 39.44 6.0 0.3 0.0 1.6 Vermont N/A Y 39.44 8.0 0.2 0.0 1.3 Virginia N/A Y 39.44 4.0 0.5 0.0 1.6 Washington State N/A Y 39.44 8.3 0.2 0.0 1.3 West Virginia N/A Y 39.44 5.0 0.3 0.0 1.3 Wisconsin Y N 39.44 1.0 0.2 0.0 0.2 Wyoming N/A Y 39.44 8.0 0.2 0.0 1.3 Puerto Rico N/A Y 39.44 3.0 0.3 0.0 0.6 Other N/A Y 39.44 1.5 0.2 0.0 0.2

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Private Recert-04; Step 2; Cost per Applicator to Procto r Private Core Recertification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.004 0.16 Total 0.16*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N = number of private applicators ce rtified in aerial category.

Given the above: RC B = cost r,i, a B x N RC t=3 P = cost r,i, P x N

Values are presented in the table below.

Table: Private Recert-04; Step 3; Total Annual Baseline and Potential Require ment Costs for Proctoring Private Core Recertification Exam

Jurisdiction cost r,i, a B ($) cost r,i, P ($) N RC B ($) RC t=3 P ($) Alabama 1.05 0.16 5,963 6,271 6,271 Alaska 3.16 0.16 89 281 281 Arizona 1.97 0.16 473 932 932 Arkansas 0.47 0.16 20,997 9,938 9,938 California 2.37 0.16 18,601 44,018 44,018 Colorado 0.92 0.16 6,049 5,567 5,567 Connecticut 1.89 0.16 564 1,067 1,067 Delaware 0.66 0.16 746 491 491 Florida 1.31 0.16 4,044 5,316 5,316 Georgia 0.47 0.16 19,679 9,314 9,314 Hawaii 3.16 0.16 444 1,401 1,401 Idaho 1.97 0.16 3,613 7,125 7,125 Illinois 0.26 0.16 17,297 4,548 4,548 Indiana 0.95 0.16 13,004 12,309 12,309 Iowa 1.58 0.16 22,977 36,249 36,249 Kansas 0.00 0.16 14,939 0 2,357 Kentucky 0.53 0.16 13,304 6,996 6,996*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Louisiana 0.39 0.16 7,616 3,004 3,004 Maine 1.58 0.16 1,175 1,854 1,854 Maryland 0.53 0.16 3,320 1,746 1,746 Massachusetts 2.63 0.16 1,130 2,970 2,970 Michigan 4.21 0.16 7,662 32,233 32,233 Minnesota 0.92 0.16 17,359 15,975 15,975 Mississippi 0.47 0.16 10,941 5,178 5,178 Missouri 0.47 0.16 21,127 9,999 9,999 Montana 0.95 0.16 6,291 5,955 5,955 Nebraska 0.66 0.16 21,818 14,342 14,342 Nevada 2.37 0.16 296 701 701 New Hampshire 2.37 0.16 502 1,187 1,187 New Jersey 1.26 0.16 1,768 2,231 2,231 New Mexico 0.79 0.16 2,702 2,132 2,132 New York 1.58 0.16 7,051 11,124 11,124 North Carolina 1.05 0.16 16,251 17,091 17,091 North Dakota 1.05 0.16 11,680 12,285 12,285 Ohio 1.31 0.16 14,803 19,461 19,461 Oklahoma 0.00 0.16 13,858 0 2,186 Oregon 2.52 0.16 4,278 10,799 10,799 Pennsylvania 0.79 0.16 18,107 14,282 14,282 Rhode Island 0.95 0.16 186 176 176 South Carolina 0.79 0.16 6,477 5,109 5,109 South Dakota 0.47 0.16 16,694 7,901 7,901 Tennessee 0.53 0.16 10,927 5,746 5,746 Texas 2.37 0.16 43,201 102,231 102,231 Utah 1.58 0.16 1,663 2,624 2,624 Vermont 1.26 0.16 562 709 709 Virginia 1.58 0.16 6,395 10,088 10,088 Washington 1.31 0.16 13,817 18,165 18,165 West Virginia 1.31 0.16 1,277 1,679 1,679 Wisconsin 0.16 0.16 13,886 2,191 2,191 Wyoming 1.26 0.16 4,655 5,875 5,875 Puerto Rico 0.59 0.16 16,728 9,896 9,896 Other 0.24 0.16 333 79 79 Total, U.S. 489,317 508,838 513,381

Step 4 - Calculate the PV of Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the thir d year, all private a pplicators with aerial certification must be recertified. EPA assumes that one-third of these app licators will recertify in each year. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-time aer ial applicators in the regions is assumed to be constant over time, existing aerial applicat ors in jurisdictions without a category will only need to obtain certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Recert-04; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 55 55 0 Alaska 2 2 0 Arizona 8 8 0 Arkansas 87 87 0 California 387 387 0 Colorado 49 49 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Connecticut 9 9 0 Delaware 4 4 0 Florida 47 47 0 Georgia 82 82 0 Hawaii 12 12 0 Idaho 63 63 0 Illinois 40 40 0 Indiana 108 108 0 Iowa 318 318 0 Kansas 16 0 16 Kentucky 61 61 0 Louisiana 26 26 0 Maine 16 16 0 Maryland 15 15 0 Massachusetts 26 26 0 Michigan 283 283 0 Minnesota 140 140 0 Mississippi 45 45 0 Missouri 88 88 0 Montana 52 52 0 Nebraska 126 126 0 Nevada 6 6 0 New Hampshire 10 10 0 New Jersey 20 20 0 New Mexico 19 19 0 New York 98 98 0 North Carolina 150 150 0 North Dakota 108 108 0 Ohio 171 171 0 Oklahoma 15 0 15 Oregon 95 95 0 Pennsylvania 125 125 0 Rhode Island 2 2 0 South Carolina 45 45 0 South Dakota 69 69 0 Tennessee 50 50 0 Texas 898 898 0 Utah 23 23 0 Vermont 6 6 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Virginia 89 89 0 Washington 160 160 0 West Virginia 15 15 0 Wisconsin 19 19 0 Wyoming 52 52 0 Puerto Rico 87 87 0 Other 1 1 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Private Recert-04; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 4,502 4,471 31 U.S. (annualized value) 512 509 4

5.2.1.7 Private Recert-05: Exam or 8 hour CEUs/tr aining for recertification every five years

Step 2 - Calculate Potential Requirement Costs per Private Applicator

Recertification requirement:

 All private applicators take 8 core-specific CEUs; option to retake initial exam/training

 EPA assumes that a practicing certified applicator will spend, on average, 7 hours preparing for an exam (in contrast to a new applicator who would spend 11 hours preparing) and one hour taking the exam, for a total of 8 hours to obtain recertification.

 Period is 5 years ( freq i,t = 0.20)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Recert-05; Applicators; Step 2; Potential Requirement Cost per Private Applic ator; Core Recertification, CEU or training

Action Wage ($/hour) Time (hours) Frequency / probability (per applicator, per year) Cost ($)
Core recertification 51.96 8 0.20 83.13

Table: Private Recert-05; Applicators; Step 2; Potential Requirement Cost per Private Applicator; Core Recertification, Exam

Action Wage ($/hour) Time (hours) Frequency / probability (per applicator, per year) Cost ($)
Core recertification 51.96 8 0.20 83.13

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing private applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing privat e applicator, presen ted in Step 2.

 The number of existing private applicators (N Xst Pvt ) in each jurisdiction is obtained from the CPARD database (see Chapter 3.3.3)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of private applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of private appl icators under the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis as would be required under this option, but distributed over different time frame. EPA acknowledges that jurisdictions will have to revise their regulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not change.

Given the above: RC B = cost r,i, a B x N Xst Pvt RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Pvt
Values are presented in the table below.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Recert-05; Applicators; Step 3; Total Annual Regional Baseline and Potential Requirement Costs for Core Recertification of Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Pvt RC B ($) RC P ($)
Alabama 69 83 5,402 374,257 449,108 Alaska 208 83 80 16,696 16,696 Arizona 130 83 389 50,487 50,487 Arkansas 31 83 19,512 608,308 1,622,154 California 156 83 16,979 2,646,649 2,646,649 Colorado 61 83 5,656 342,882 470,238 Connecticut 125 83 543 67,713 67,713 Delaware 43 83 676 29,285 56,227 Florida 87 83 3,704 320,719 320,719 Georgia 31 83 18,010 561,472 1,497,258 Hawaii 208 83 413 85,871 85,871 Idaho 130 83 3,474 451,309 451,309 Illinois 139 83 16,223 2,247,850 2,247,850 Indiana 62 83 12,208 761,182 1,014,910 Iowa 104 83 22,104 2,297,050 2,297,050 Kansas 83 83 13,833 1,149,976 1,149,976 Kentucky 35 83 10,733 371,769 892,244 Louisiana 26 83 7,241 188,127 602,007 Maine 104 83 1,099 114,241 114,241 Maryland 35 83 3,212 111,274 267,057 Massachusetts 173 83 1,045 181,049 181,049 Michigan 277 83 7,165 1,985,629 1,985,629 Minnesota 61 83 16,690 1,011,733 1,387,520 Mississippi 31 83 9,597 299,181 797,817 Missouri 31 83 19,499 607,877 1,621,004 Montana 62 83 6,033 376,154 501,538 Nebraska 43 83 21,052 911,517 1,750,113 Nevada 156 83 248 38,684 38,684 New Hampshire 156 83 469 73,107 73,107 New Jersey 83 83 1,569 130,397 130,397 New Mexico 52 83 2,478 128,729 205,967 New York 104 83 6,805 707,200 707,200 North Carolina 69 83 15,781 1,093,292 1,311,951 North Dakota 69 83 10,757 745,257 894,309 Ohio 87 83 14,524 1,257,775 1,257,775 Oklahoma 83 83 12,295 1,022,170 1,022,170 Oregon 166 83 4,093 680,542 680,542 Pennsylvania 52 83 17,441 906,230 1,449,968 Rhode Island 62 83 180 11,223 14,964 South Carolina 52 83 5,745 298,506 477,610*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

South Dakota 31 83 14,543 453,391 1,209,043 Tennessee 35 83 10,522 364,488 874,772 Texas 156 83 40,170 6,261,662 6,261,662 Utah 104 83 1,384 143,823 143,823 Vermont 83 83 520 43,244 43,244 Virginia 104 83 5,531 574,808 574,808 Washington 87 83 13,148 1,138,572 1,138,572 West Virginia 87 83 1,198 103,745 103,745 Wisconsin 83 83 12,816 1,065,428 1,065,428 Wyoming 83 83 4,267 354,736 354,736 Puerto Rico 39 83 15,982 622,823 1,328,688 Other Jurisdictions 16 83 238 3,705 19,758 Total, U.S. 455,278 36,393,795 45,927,360

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. The cost of recertification would remain constant ther eafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Recert-05, Recertification of Private Certification; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 3,798 3,288 510 Alaska 147 147 0 Arizona 444 444 0 Arkansas 12,254 5,345 6,910 California 23,254 23,254 0 Colorado 3,881 3,013 868 Connecticut 595 595 0 Delaware 441 257 184 Florida 2,818 2,818 0 Georgia 11,311 4,933 6,378 Hawaii 754 754 0 Idaho 3,965 3,965 0 Illinois 19,750 19,750 0 Indiana 8,417 6,688 1,729 Iowa 20,182 20,182 0 Kansas 10,104 10,104 0 Kentucky 6,814 3,266 3,547 Louisiana 4,474 1,653 2,821 Maine 1,004 1,004 0 Maryland 2,039 978 1,062 Massachusetts 1,591 1,591 0 Michigan 17,446 17,446 0 Minnesota 11,450 8,889 2,561 Mississippi 6,027 2,629 3,398 Missouri 12,246 5,341 6,905 Montana 4,159 3,305 855 Nebraska 13,724 8,009 5,715 Nevada 340 340 0 New Hampshire 642 642 0 New Jersey 1,146 1,146 0 New Mexico 1,657 1,131 526 New York 6,214 6,214 0 North Carolina 11,096 9,606 1,490 North Dakota 7,564 6,548 1,016 Ohio 11,051 11,051 0 Oklahoma 8,981 8,981 0 Oregon 5,979 5,979 0 Pennsylvania 11,668 7,962 3,706*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Rhode Island 124 99 25 South Carolina 3,843 2,623 1,221 South Dakota 9,133 3,984 5,150 Tennessee 6,680 3,202 3,478 Texas 55,016 55,016 0 Utah 1,264 1,264 0 Vermont 380 380 0 Virginia 5,050 5,050 0 Washington 10,004 10,004 0 West Virginia 912 912 0 Wisconsin 9,361 9,361 0 Wyoming 3,117 3,117 0 Puerto Rico 10,283 5,472 4,811 Other Jurisdictions 142 33 109

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Recert-05, Recertification of Private Certification; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 384,733 319,760 64,973 U.S. (annualized value) 43,789 36,394 7,395 Per applicator incremental cost 0.016

State Costs of Administering R ecertification Exam or Verifying Completion of Recertification Training for General Competency*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

The options analyzed in this sec tion address the requirements for re certification of applicators in the core competency as they apply to the admi nistration of recertifica tion exam or verifying completion of required trai ning for recertification.

Private Applicator
Currently, federal standards regardin g recertification of pr ivate applicators require states to have process to assure continued competency. Howeve r, there are no standards for the process or frequency of recertification.
States currently have a variety of options for recertification, w ith recertification period ranging from 1-6 years.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that private applicators completed the required training. EPA assumes that it takes a state official one hour to conduct verification of the trai ning requirements for 50 private applicators. Therefore, whet her a jurisdiction recertifies by exam or training, its cost of administration is the same – one hour of a stat e official’s time for 50 private applicators.

5.2.1.8 Private Recert-05: Administer Exam or 8-hour Training for Private Core Competency Recertification: Every 5 Years

The costs are identical to Private Recert-04 b ecause proctoring a group of 50 examinees takes one hour of Jr technician’s time whether it is a 6-hour or 8-hour exam. Similarly, it takes a Jr technician one hour to verify completion of trai ning for 50 applicators wh ether it is a 6-hour or 8-hour training.

5.2.2 Potential New Categories, Private Applicators

Some states may require privat e applicators to certify and re certify in specific categories. Potential requirements for recertification in the potential new categories would also apply to existing state categories. Because it is not clear how states will revise th eir certification plans, especially whether they will retain categories not required by EPA, the Agency has not tried to account for those costs.

Aerial Applications

Step 1 - Calculate Baseline Costs per Existing Private Applicator, Aerial Applications

Note that the baseline cost estimate is identical for four options pertaining to the recertification of the aerial category (under options Private Recert-01, 02, 04, and 05).*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

According to information on recertification, 4 ju risdictions (Illinois, Kansas, Oklahoma, and Wisconsin) require exams, all others require tr aining or provide for the option of training or exam. EPA assumes that trainings are typically the preferred option ev en where the level of effort would be similar.

Only Wisconsin has an aerial certification requirement.

Wisconsin Recertification Requirements:

 Must retake initial exam for each category of certification (no core)

 Each exam takes 1 hour to take plus 5 hours of prep time, or 6 hours, as per general recertification (s ee Appendix A.5.a.i)

 Period is 5 years ( freq i,t = 0.20)

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification – Wisconsin

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 51.96 6 0.20 62.35

All other jurisdictions do not ha ve a category and thus no recertif ication requirements. Baseline
costs are zero.

5.2.2.1 Private Recert-01: Aerial Category Recertifi cation by Exam or 3 hour CEUs/training every three years

Step 2 - Calculate Costs per Existing Aerial Applicator of Potential Requirement Recertification requirement:

 All private aerial applicators take 3 categor y-specific CEUs; option to retake initial

 Period is 3 years ( freq i,t = 0.333)

Table: Private Recert-01; A erial Application Recertification by 3 CEU; Step 2; Cost of Potential Requirement per Existing Aerial Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 51.96 3 0.333 51.96

Table: Private Recert-01; Aerial Application Recertific ation by Exam; Step 2; Cost of Potential Requirement per Existing Aerial Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 51.96 6 0.333 103.92*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost pe r existing private aerial applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing private aerial applicator, presented in Step 2.

 The number of existing privat e aerial applicators (N Xst Pvt ) in each jurisdiction is obtained from the CPARD database or extrapolated to other states (see Chapter 3.3.3)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of private aerial applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of private aerial applicators unde r the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis as would be required under this option, but distributed over different time frame. EPA acknowledges that jurisdictions will have to revise their regulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not change.

Given the above: RC B = cost r,i, a B x N Xst Pvt Air RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Pvt Air
Values are presented in the table below.

Table: Private Recert-01; Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Recertification of Private Aerial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Pvt Air RC B ($) RC P ($)
Alabama 0 52 0 0 0 Alaska 0 52 0 0 0 Arizona 0 52 0 0 0 Arkansas 0 52 2 0 104 California 0 52 4 0 208 Colorado 0 52 1 0 52 Connecticut 0 52 0 0 0 Delaware 0 52 0 0 0 Florida 0 52 3 0 156*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Georgia 0 52 2 0 104 Hawaii 0 52 0 0 0 Idaho 0 52 2 0 104 Illinois 0 104 2 0 208 Indiana 0 52 2 0 104 Iowa 0 52 7 0 364 Kansas 0 104 3 0 312 Kentucky 0 52 0 0 0 Louisiana 0 52 3 0 156 Maine 0 52 0 0 0 Maryland 0 52 0 0 0 Massachusetts 0 52 0 0 0 Michigan 0 52 0 0 0 Minnesota 0 52 3 0 156 Mississippi 0 52 2 0 104 Missouri 0 52 2 0 104 Montana 0 52 0 0 0 Nebraska 0 52 5 0 260 Nevada 0 52 0 0 0 New Hampshire 0 52 0 0 0 New Jersey 0 52 0 0 0 New Mexico 0 52 0 0 0 New York 0 52 0 0 0 North Carolina 0 52 1 0 52 North Dakota 0 52 3 0 156 Ohio 0 52 0 0 0 Oklahoma 0 104 4 0 416 Oregon 0 52 2 0 104 Pennsylvania 0 52 0 0 0 Rhode Island 0 52 0 0 0 South Carolina 0 52 0 0 0 South Dakota 0 52 3 0 156 Tennessee 0 52 0 0 0 Texas 0 52 5 0 260 Utah 0 52 0 0 0 Vermont 0 52 0 0 0 Virginia 0 52 0 0 0 Washington 0 52 4 0 208 West Virginia 0 52 0 0 0 Wisconsin 62 104 0 0 0 Wyoming 0 52 0 0 0 Puerto Rico 0 52 0 0 0 Other Jurisdictions 0 52 0 0 0 Total, U.S. 65 0 3,845*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing aerial applicators not in cluded in the baseline regional costs (not certified) obtain initial ce rtification (see Appendix A2). The cost of recertification under th e proposal begins in the fourth year a nd would remain constant thereafter. The PV of costs under the proposal , at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଷ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 2.91 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 5.87

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Recert-01, Recertification of Private Aerial Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 0.0 0.0 0.0 Alaska 0.0 0.0 0.0 Arizona 0.0 0.0 0.0 Arkansas 0.6 0.0 0.6 California 1.2 0.0 1.2 Colorado 0.3 0.0 0.3 Connecticut 0.0 0.0 0.0 Delaware 0.0 0.0 0.0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Florida 0.9 0.0 0.9 Georgia 0.6 0.0 0.6 Hawaii 0.0 0.0 0.0 Idaho 0.6 0.0 0.6 Illinois 1.2 0.0 1.2 Indiana 0.6 0.0 0.6 Iowa 2.1 0.0 2.1 Kansas 1.8 0.0 1.8 Kentucky 0.0 0.0 0.0 Louisiana 0.9 0.0 0.9 Maine 0.0 0.0 0.0 Maryland 0.0 0.0 0.0 Massachusetts 0.0 0.0 0.0 Michigan 0.0 0.0 0.0 Minnesota 0.9 0.0 0.9 Mississippi 0.6 0.0 0.6 Missouri 0.6 0.0 0.6 Montana 0.0 0.0 0.0 Nebraska 1.5 0.0 1.5 Nevada 0.0 0.0 0.0 New Hampshire 0.0 0.0 0.0 New Jersey 0.0 0.0 0.0 New Mexico 0.0 0.0 0.0 New York 0.0 0.0 0.0 North Carolina 0.3 0.0 0.3 North Dakota 0.9 0.0 0.9 Ohio 0.0 0.0 0.0 Oklahoma 2.4 0.0 2.4 Oregon 0.6 0.0 0.6 Pennsylvania 0.0 0.0 0.0 Rhode Island 0.0 0.0 0.0 South Carolina 0.0 0.0 0.0 South Dakota 0.9 0.0 0.9 Tennessee 0.0 0.0 0.0 Texas 1.5 0.0 1.5 Utah 0.0 0.0 0.0 Vermont 0.0 0.0 0.0 Virginia 0.0 0.0 0.0 Washington 1.2 0.0 1.2 West Virginia 0.0 0.0 0.0 Wisconsin 0.0 0.0 0.0 Wyoming 0.0 0.0 0.0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Puerto Rico 0.0 0.0 0.0 Other Jurisdictions 0.0 0.0 0.0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Recert-01, Recertification of Private Aerial Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 22.3 0.0 22.6 U.S. (annualized value) 2.6 0.0 2.6 Per applicator incremental cost 0.040

State Costs of Administering Recertification Exam or Verifying Completion of Training for Application Method-Spec ific Categories

The options analyzed in this sec tion address the requirements for re certification of applicators in the application method-specific categories as they apply to the administ ration of recertification exam or verifying completion of requ ired training for recertification.

Private Applicator
Although there are currently no federal private applicator certifica tion categories based on application method, some states do require certification in one or more of the application method-specific categories among those considered in the potential requir ements. For private certification categories consider ed as potential requirements (aerial, chemigation, general fumigation, soil fumigation, and non-soil fumigation) , there are different jurisdictions that currently require each. Jurisdicti ons that do not require a particular category have zero baseline cost for certification or recertific ation for that category. Most of the jurisdictions that require a given category in the baseline al so require recertification. EPA considers these recertification requirements in compliance with the proposed requirements.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

For private applicators, the jurisdictions that have one or more of the application method-specific categories require recertification by passing a written exam or by completing the required training. The proposed rule also requires recertification in thes e categories by passing a written exam or by completing the required training.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that private applicators completed the required training. EPA assumes that it takes a state official one hour to conduct verification of the trai ning requirements for 50 private applicators. Therefore, whet her a jurisdiction recertifies by exam or training, its cost of administration is the same – one hour of a stat e official’s time for 50 private applicators.

5.2.2.2 Private Recert-01: Administer Exam or 3-hour Training for Private Aerial Category Recertification: Every 3 Years

Step 1 - Calculate Baseline Costs

Jurisdictions that Require Recertification in Aerial Category in the Baseline

Only Wisconsin requires aerial certification and recertification in the baseline.

Assumptions:

 Currently, Wisconsin requires aeria l recertification every 5 years

 Wisconsin proctors their recertification exam.

 It takes a Jr. Technician 1 hour to proctor a group of 50 examinees

 The wage rate for a Jr Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Private Recert-01; Step 1; Baseline Cost per Applicator to Proctor Pr ivate Aerial Category Recertification Exam; States Currently Requiring Proctoring of Aerial Category Recertification Exam Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.004 0.16 Total 0.16

Jurisdictions that do Not Require Recertificat ion in Aerial Category in the Baseline

No jurisdiction, with the exception of Wisconsin, requires aerial ce rtification/rece rtification in the baseline.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Recert-01; Step 1; Baseline Cost per Applicator to Proctor Pr ivate Aerial Category Recertification Exam; Jurisdictions Currently Not Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($)
None

– no category certification requirement 39.44 0 0 0.00

Total 0.00

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Private Recert-01; Step 2; Cost per Applicator to Proctor Pri vate Aerial Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.007 0.26 Total 0.26

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N = number of private applicators ce rtified in aerial category.

Given the above: RC B = cost r,i, a B x N RC t=3 P = cost r,i, P x N

Values are presented in the table below.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Recert-01; Step 3; Total Annual Baseline and Potential Requireme nt Costs for Proctoring Aerial Category Recertification Exam for Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, P ($) N RC B ($) RC t=3 P ($) Alabama 0.00 0.26 0.0 0.00 0.00 Alaska 0.00 0.26 0.0 0.00 0.00 Arizona 0.00 0.26 0.0 0.00 0.00 Arkansas 0.00 0.26 2.2 0.00 0.59 California 0.00 0.26 4.5 0.00 1.18 Colorado 0.00 0.26 1.1 0.00 0.29 Connecticut 0.00 0.26 0.0 0.00 0.00 Delaware 0.00 0.26 0.0 0.00 0.00 Florida 0.00 0.26 3.4 0.00 0.88 Georgia 0.00 0.26 2.2 0.00 0.59 Hawaii 0.00 0.26 0.0 0.00 0.00 Idaho 0.00 0.26 2.2 0.00 0.59 Illinois 0.00 0.26 2.2 0.00 0.59 Indiana 0.00 0.26 2.2 0.00 0.59 Iowa 0.00 0.26 7.8 0.00 2.06 Kansas 0.00 0.26 3.4 0.00 0.88 Kentucky 0.00 0.26 0.0 0.00 0.00 Louisiana 0.00 0.26 3.4 0.00 0.88 Maine 0.00 0.26 0.0 0.00 0.00 Maryland 0.00 0.26 0.0 0.00 0.00 Massachusetts 0.00 0.26 0.0 0.00 0.00 Michigan 0.00 0.26 0.0 0.00 0.00 Minnesota 0.00 0.26 3.4 0.00 0.88 Mississippi 0.00 0.26 2.2 0.00 0.59 Missouri 0.00 0.26 2.2 0.00 0.59 Montana 0.00 0.26 0.0 0.00 0.00 Nebraska 0.00 0.26 5.6 0.00 1.47 Nevada 0.00 0.26 0.0 0.00 0.00 New Hampshire 0.00 0.26 0.0 0.00 0.00 New Jersey 0.00 0.26 0.0 0.00 0.00 New Mexico 0.00 0.26 0.0 0.00 0.00 New York 0.00 0.26 0.0 0.00 0.00 North Carolina 0.00 0.26 1.1 0.00 0.29 North Dakota 0.00 0.26 3.4 0.00 0.88 Ohio 0.00 0.26 0.0 0.00 0.00*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Oklahoma 0.00 0.26 4.5 0.00 1.18 Oregon 0.00 0.26 2.2 0.00 0.59 Pennsylvania 0.00 0.26 0.0 0.00 0.00 Rhode Island 0.00 0.26 0.0 0.00 0.00 South Carolina 0.00 0.26 0.0 0.00 0.00 South Dakota 0.00 0.26 3.4 0.00 0.88 Tennessee 0.00 0.26 0.0 0.00 0.00 Texas 0.00 0.26 5.6 0.00 1.47 Utah 0.00 0.26 0.0 0.00 0.00 Vermont 0.00 0.26 0.0 0.00 0.00 Virginia 0.00 0.26 0.0 0.00 0.00 Washington 0.00 0.26 4.5 0.00 1.18 West Virginia 0.00 0.26 0.0 0.00 0.00 Wisconsin 0.16 0.26 0.0 0.00 0.00 Wyoming 0.00 0.26 0.0 0.00 0.00 Puerto Rico 0.00 0.26 0.0 0.00 0.00 Other 0.00 0.26 0.0 0.00 0.00 Total, U.S. 73 0 19

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the thir d year, all private a pplicators with aerial certification must be recertified. EPA assumes that one-third of these app licators will recertify in each year. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ∙ 6.82*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-time aer ial applicators in the regions is assumed to be constant over time, existing aerial applicat ors in jurisdictions without a category will only need to obtain certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Recert-01; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 0.00 0.00 0.00 Alaska 0.00 0.00 0.00 Arizona 0.00 0.00 0.00 Arkansas 0.00 0.00 0.00 California 0.01 0.00 0.01 Colorado 0.00 0.00 0.00 Connecticut 0.00 0.00 0.00 Delaware 0.00 0.00 0.00 Florida 0.01 0.00 0.01 Georgia 0.00 0.00 0.00 Hawaii 0.00 0.00 0.00 Idaho 0.00 0.00 0.00 Illinois 0.00 0.00 0.00 Indiana 0.00 0.00 0.00 Iowa 0.01 0.00 0.01 Kansas 0.01 0.00 0.01 Kentucky 0.00 0.00 0.00 Louisiana 0.01 0.00 0.01 Maine 0.00 0.00 0.00 Maryland 0.00 0.00 0.00 Massachusetts 0.00 0.00 0.00 Michigan 0.00 0.00 0.00 Minnesota 0.01 0.00 0.01 Mississippi 0.00 0.00 0.00 Missouri 0.00 0.00 0.00*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Montana 0.00 0.00 0.00 Nebraska 0.01 0.00 0.01 Nevada 0.00 0.00 0.00 New Hampshire 0.00 0.00 0.00 New Jersey 0.00 0.00 0.00 New Mexico 0.00 0.00 0.00 New York 0.00 0.00 0.00 North Carolina 0.00 0.00 0.00 North Dakota 0.01 0.00 0.01 Ohio 0.00 0.00 0.00 Oklahoma 0.01 0.00 0.01 Oregon 0.00 0.00 0.00 Pennsylvania 0.00 0.00 0.00 Rhode Island 0.00 0.00 0.00 South Carolina 0.00 0.00 0.00 South Dakota 0.01 0.00 0.01 Tennessee 0.00 0.00 0.00 Texas 0.01 0.00 0.01 Utah 0.00 0.00 0.00 Vermont 0.00 0.00 0.00 Virginia 0.00 0.00 0.00 Washington 0.01 0.00 0.01 West Virginia 0.00 0.00 0.00 Wisconsin 0.00 0.00 0.00 Wyoming 0.00 0.00 0.00 Puerto Rico 0.00 0.00 0.00 Other 0.00 0.00 0.00

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Recert-01; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 0.13 0 0.13 U.S. (annualized value) 0.015 0 0.015

5.2.2.3 Private Recert-02: Aerial Category Recertifi cation by Exam or 4 hour CEUs/training every three years

Step 2 - Calculate Costs per Existing Aerial Applicator of Potential Requirement Recertification requirement:

 All private aerial applicators take 4 categor y-specific CEUs; option to retake initial

 Period is 3 years ( freq i,t = 0.333)

Table: Private Recert-02; A erial Application Recertification by 4 CEU; Step 2; Cost of Potential Requirement per Existing Aerial Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 51.96 4 0.333 69.28

Table: Private Recert-02; Aerial Application Recertific ation by Exam; Step 2; Cost of Potential Requirement per Existing Aerial Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 51.96 6 0.333 103.92

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost pe r existing private aerial applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing private aerial applicator, presented in Step 2.

 The number of existing privat e aerial applicators (N Xst Pvt ) in each jurisdiction is obtained from the CPARD database or extrapolated to other states (see Chapter 3.3.3)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of private aerial applicators in the region.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of private aerial applicators unde r the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis as would be required under this option, but distributed over different time frame. EPA acknowledges that jurisdictions will have to revise their regulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not change.

Given the above: RC B = cost r,i, a B x N Xst Pvt Air RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Pvt Air
Values are presented in the table below.

Table: Private Recert-02; Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Recertification of Private Aerial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Pvt Air RC B ($) RC P ($)
Alabama 0 69 0 0 0 Alaska 0 69 0 0 0 Arizona 0 69 0 0 0 Arkansas 0 69 2 0 139 California 0 69 4 0 277 Colorado 0 69 1 0 69 Connecticut 0 69 0 0 0 Delaware 0 69 0 0 0 Florida 0 69 3 0 208 Georgia 0 69 2 0 139 Hawaii 0 69 0 0 0 Idaho 0 69 2 0 139 Illinois 0 104 2 0 208 Indiana 0 69 2 0 139 Iowa 0 69 7 0 485 Kansas 0 104 3 0 312 Kentucky 0 69 0 0 0 Louisiana 0 69 3 0 208 Maine 0 69 0 0 0 Maryland 0 69 0 0 0 Massachusetts 0 69 0 0 0 Michigan 0 69 0 0 0 Minnesota 0 69 3 0 208*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Mississippi 0 69 2 0 139 Missouri 0 69 2 0 139 Montana 0 69 0 0 0 Nebraska 0 69 5 0 346 Nevada 0 69 0 0 0 New Hampshire 0 69 0 0 0 New Jersey 0 69 0 0 0 New Mexico 0 69 0 0 0 New York 0 69 0 0 0 North Carolina 0 69 1 0 69 North Dakota 0 69 3 0 208 Ohio 0 69 0 0 0 Oklahoma 0 104 4 0 416 Oregon 0 69 2 0 139 Pennsylvania 0 69 0 0 0 Rhode Island 0 69 0 0 0 South Carolina 0 69 0 0 0 South Dakota 0 69 3 0 208 Tennessee 0 69 0 0 0 Texas 0 69 5 0 346 Utah 0 69 0 0 0 Vermont 0 69 0 0 0 Virginia 0 69 0 0 0 Washington 0 69 4 0 277 West Virginia 0 69 0 0 0 Wisconsin 62 104 0 0 0 Wyoming 0 69 0 0 0 Puerto Rico 0 69 0 0 0 Other Jurisdictions 0 69 0 0 0 Total, U.S. 65 0 4,815

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing aerial applicators not in cluded in the baseline*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

regional costs (not certified) obtain initial ce rtification (see Appendix A2). The cost of recertification under th e proposal begins in the fourth year a nd would remain constant thereafter. The PV of costs under the proposal , at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଷ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 2.91 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 5.87

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Recert-02, Recertification of Private Aerial Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 0.0 0.0 0.0 Alaska 0.0 0.0 0.0 Arizona 0.0 0.0 0.0 Arkansas 0.8 0.0 0.6 California 1.6 0.0 1.2 Colorado 0.4 0.0 0.3 Connecticut 0.0 0.0 0.0 Delaware 0.0 0.0 0.0 Florida 1.2 0.0 0.9 Georgia 0.8 0.0 0.6 Hawaii 0.0 0.0 0.0 Idaho 0.8 0.0 0.6 Illinois 1.2 0.0 0.6 Indiana 0.8 0.0 0.6 Iowa 2.8 0.0 2.1 Kansas 1.8 0.0 0.9 Kentucky 0.0 0.0 0.0 Louisiana 1.2 0.0 0.9 Maine 0.0 0.0 0.0 Maryland 0.0 0.0 0.0 Massachusetts 0.0 0.0 0.0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Michigan 0.0 0.0 0.0 Minnesota 1.2 0.0 0.9 Mississippi 0.8 0.0 0.6 Missouri 0.8 0.0 0.6 Montana 0.0 0.0 0.0 Nebraska 2.0 0.0 1.5 Nevada 0.0 0.0 0.0 New Hampshire 0.0 0.0 0.0 New Jersey 0.0 0.0 0.0 New Mexico 0.0 0.0 0.0 New York 0.0 0.0 0.0 North Carolina 0.4 0.0 0.3 North Dakota 1.2 0.0 0.9 Ohio 0.0 0.0 0.0 Oklahoma 2.4 0.0 1.2 Oregon 0.8 0.0 0.6 Pennsylvania 0.0 0.0 0.0 Rhode Island 0.0 0.0 0.0 South Carolina 0.0 0.0 0.0 South Dakota 1.2 0.0 0.9 Tennessee 0.0 0.0 0.0 Texas 2.0 0.0 1.5 Utah 0.0 0.0 0.0 Vermont 0.0 0.0 0.0 Virginia 0.0 0.0 0.0 Washington 1.6 0.0 1.2 West Virginia 0.0 0.0 0.0 Wisconsin 0.0 0.0 0.0 Wyoming 0.0 0.0 0.0 Puerto Rico 0.0 0.0 0.0 Other Jurisdictions 0.0 0.0 0.0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Recert-02, Recertification of Private Aerial Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 28.3 0.0 28.3 U.S. (annualized value) 3.2 0.0 3.2 Per applicator incremental cost 0.050

State Costs of Administering Recertification Exam or Verifying Completion of Training for Application Method-Spec ific Categories

The options analyzed in this sec tion address the requirements for re certification of applicators in the application method-specific categories as they apply to the administ ration of recertification exam or verifying completion of requ ired training for recertification.

Private Applicator
Although there are currently no federal private applicator certifica tion categories based on application method, some states do require certification in one or more of the application method-specific categories among those considered in the potential requir ements. For private certification categories consider ed as potential requirements (aerial, chemigation, general fumigation, soil fumigation, and non-soil fumigation) , there are different jurisdictions that currently require each. Jurisdicti ons that do not require a particular category have zero baseline cost for certification or recertific ation for that category. Most of the jurisdictions that require a given category in the baseline al so require recertification. EPA considers these recertification requirements in compliance with the proposed requirements.
For private applicators, the jurisdictions that have one or more of the application method-specific categories require recertification by passing a written exam or by completing the required training. The proposed rule also requires recertification in thes e categories by passing a written exam or by completing the required training.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that private applicators completed the required training. EPA assumes that it takes a state official one hour to conduct verification of the trai ning requirements for 50 private applicators. Therefore, whet her a jurisdiction recertifies by exam or training, its cost of administration is the same – one hour of a stat e official’s time for 50 private applicators.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5.2.2.4 Private Recert-02: Administer Exam or 4-hour Training for Private Aerial Category Recertification: Every 3 Years

The costs are identical to Private Recert-01 b ecause proctoring a group of 50 examinees takes one hour of Jr technician’s time whether it is a 3-hour or 4-hour exam. Similarly, it takes a Jr technician one hour to verify completion of trai ning for 50 applicators wh ether it is a 3-hour or 4-hour training.

5.2.2.5 Private Recert-04: Aerial Category Recertifi cation by Exam or 3 hour CEUs/training every five years

Step 2 - Calculate Costs per Existing Aerial Applicator of Potential Requirement Recertification requirement:

 All private aerial applicators take 3 categor y-specific CEUs; option to retake initial

 Period is 5 years ( freq i,t = 0.20)

Table: Private Recert-04; A erial Application Recertification by 3 CEU; Step 2; Cost of Potential Requirement per Existing Aerial Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 51.96 3 0.20 31.18

Table: Private Recert-04; Aerial Application Recertific ation by Exam; Step 2; Cost of Potential Requirement per Existing Aerial Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 51.96 6 0.20 62.35

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost pe r existing private aerial applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing private aerial applicator, presented in Step 2.

 The number of existing privat e aerial applicators (N Xst Pvt ) in each jurisdiction is obtained from the CPARD database or extrapolated to other states (see Chapter 3.3.3)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of private aerial applicators in the region.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of private aerial applicators unde r the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis as would be required under this option, but distributed over different time frame. EPA acknowledges that jurisdictions will have to revise their regulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not change.

Given the above: RC B = cost r,i, a B x N Xst Pvt Air RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Pvt Air
Values are presented in the table below.

Table: Private Recert-04; Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Recertification of Private Aerial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Pvt Air RC B ($) RC P ($)
Alabama 0 31 0 0 0 Alaska 0 31 0 0 0 Arizona 0 31 0 0 0 Arkansas 0 31 2 0 62 California 0 31 4 0 125 Colorado 0 31 1 0 31 Connecticut 0 31 0 0 0 Delaware 0 31 0 0 0 Florida 0 31 3 0 94 Georgia 0 31 2 0 62 Hawaii 0 31 0 0 0 Idaho 0 31 2 0 62 Illinois 0 62 2 0 125 Indiana 0 31 2 0 62 Iowa 0 31 7 0 218 Kansas 0 62 3 0 187 Kentucky 0 31 0 0 0 Louisiana 0 31 3 0 94 Maine 0 31 0 0 0 Maryland 0 31 0 0 0 Massachusetts 0 31 0 0 0 Michigan 0 31 0 0 0 Minnesota 0 31 3 0 94*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Mississippi 0 31 2 0 62 Missouri 0 31 2 0 62 Montana 0 31 0 0 0 Nebraska 0 31 5 0 156 Nevada 0 31 0 0 0 New Hampshire 0 31 0 0 0 New Jersey 0 31 0 0 0 New Mexico 0 31 0 0 0 New York 0 31 0 0 0 North Carolina 0 31 1 0 31 North Dakota 0 31 3 0 94 Ohio 0 31 0 0 0 Oklahoma 0 62 4 0 249 Oregon 0 31 2 0 62 Pennsylvania 0 31 0 0 0 Rhode Island 0 31 0 0 0 South Carolina 0 31 0 0 0 South Dakota 0 31 3 0 94 Tennessee 0 31 0 0 0 Texas 0 31 5 0 156 Utah 0 31 0 0 0 Vermont 0 31 0 0 0 Virginia 0 31 0 0 0 Washington 0 31 4 0 125 West Virginia 0 31 0 0 0 Wisconsin 62 62 0 0 0 Wyoming 0 31 0 0 0 Puerto Rico 0 31 0 0 0 Other Jurisdictions 0 31 0 0 0 Total, U.S. 65 0 2,307

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing aerial applicators not in cluded in the baseline*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

regional costs (not certified) obtain initial ce rtification (see Appendix A2). The cost of recertification under th e proposal begins in the fourth year a nd would remain constant thereafter. The PV of costs under the proposal , at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଷ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 2.91 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 5.87

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Recert-04, Recertification of Private Aerial Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 0.0 0.0 0.0 Alaska 0.0 0.0 0.0 Arizona 0.0 0.0 0.0 Arkansas 0.4 0.0 0.4 California 0.7 0.0 0.7 Colorado 0.2 0.0 0.2 Connecticut 0.0 0.0 0.0 Delaware 0.0 0.0 0.0 Florida 0.5 0.0 0.5 Georgia 0.4 0.0 0.4 Hawaii 0.0 0.0 0.0 Idaho 0.4 0.0 0.4 Illinois 0.7 0.0 0.7 Indiana 0.4 0.0 0.4 Iowa 1.3 0.0 1.3 Kansas 1.1 0.0 1.1 Kentucky 0.0 0.0 0.0 Louisiana 0.5 0.0 0.5 Maine 0.0 0.0 0.0 Maryland 0.0 0.0 0.0 Massachusetts 0.0 0.0 0.0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Michigan 0.0 0.0 0.0 Minnesota 0.5 0.0 0.5 Mississippi 0.4 0.0 0.4 Missouri 0.4 0.0 0.4 Montana 0.0 0.0 0.0 Nebraska 0.9 0.0 0.9 Nevada 0.0 0.0 0.0 New Hampshire 0.0 0.0 0.0 New Jersey 0.0 0.0 0.0 New Mexico 0.0 0.0 0.0 New York 0.0 0.0 0.0 North Carolina 0.2 0.0 0.2 North Dakota 0.5 0.0 0.5 Ohio 0.0 0.0 0.0 Oklahoma 1.5 0.0 1.5 Oregon 0.4 0.0 0.4 Pennsylvania 0.0 0.0 0.0 Rhode Island 0.0 0.0 0.0 South Carolina 0.0 0.0 0.0 South Dakota 0.5 0.0 0.5 Tennessee 0.0 0.0 0.0 Texas 0.9 0.0 0.9 Utah 0.0 0.0 0.0 Vermont 0.0 0.0 0.0 Virginia 0.0 0.0 0.0 Washington 0.7 0.0 0.7 West Virginia 0.0 0.0 0.0 Wisconsin 0.0 0.0 0.0 Wyoming 0.0 0.0 0.0 Puerto Rico 0.0 0.0 0.0 Other Jurisdictions 0.0 0.0 0.0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Recert-04, Recertification of Private Aerial Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 13.5 0.0 13.5 U.S. (annualized value) 1.5 0.0 1.5 Per applicator incremental cost 0.024

State Costs of Administering Recertification Exam or Verifying Completion of Training for Application Method-Spec ific Categories

The options analyzed in this sec tion address the requirements for re certification of applicators in the application method-specific categories as they apply to the administ ration of recertification exam or verifying completion of requ ired training for recertification.

Private Applicator
Although there are currently no federal private applicator certifica tion categories based on application method, some states do require certification in one or more of the application method-specific categories among those considered in the potential requir ements. For private certification categories consider ed as potential requirements (aerial, chemigation, general fumigation, soil fumigation, and non-soil fumigation) , there are different jurisdictions that currently require each. Jurisdicti ons that do not require a particular category have zero baseline cost for certification or recertific ation for that category. Most of the jurisdictions that require a given category in the baseline al so require recertification. EPA considers these recertification requirements in compliance with the proposed requirements.
For private applicators, the jurisdictions that have one or more of the application method-specific categories require recertification by passing a written exam or by completing the required training. The proposed rule also requires recertification in thes e categories by passing a written exam or by completing the required training.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that private applicators completed the required training. EPA assumes that it takes a state official one hour to conduct verification of the trai ning requirements for 50 private applicators. Therefore, whet her a jurisdiction recertifies by exam or training, its cost of administration is the same – one hour of a stat e official’s time for 50 private applicators.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5.2.2.6 Private Recert-04: Administer Exam or 3-hour Training for Private Aerial Category Recertification: Every 5 Years

Step 1 - Calculate Baseline Costs

Jurisdictions that Require Recertification in Aerial Category in the Baseline

Only Wisconsin requires aerial certification and recertification in the baseline.

Assumptions:

 Currently, Wisconsin requires aeria l recertification every 5 years

 Wisconsin proctors their recertification exam.

 It takes a Jr. Technician 1 hour to proctor a group of 50 examinees

 The wage rate for a Jr Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Private Recert-04; Step 1; Baseline Cost per Applicator to Proctor Pr ivate Aerial Category Recertification Exam; States Currently Requiring Proctoring of Aerial Category Recertification Exam Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.004 0.16 Total 0.16

Jurisdictions that do Not Require Recertificat ion in Aerial Category in the Baseline

No jurisdiction, with the exception of Wisconsin, requires aerial ce rtification/rece rtification in the baseline.

Table: Private Recert-04; Step 1; Baseline Cost per Applicator to Proctor Pr ivate Aerial Category Recertification Exam; Jurisdictions Currently Not Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($)
None

– no category certification requirement 39.44 0 0 0.00

Total 0.00

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Private Recert-04; Step 2; Cost per Applicator to Proctor Pri vate Aerial Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category exam 39.44 1 0.004 0.16 Total 0.16

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N = number of private applicators ce rtified in aerial category.

Given the above: RC B = cost r,i, a B x N RC t=3 P = cost r,i, P x N

Values are presented in the table below.

Table: Private Recert-04; Step 3; Total Annual Baseline and Potential Requireme nt Costs for Proctoring Aerial Category Recertification Exam for Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, P ($) N RC B ($) RC t=3 P ($) Alabama 0.00 0.16 0.0 0.00 0.00 Alaska 0.00 0.16 0.0 0.00 0.00 Arizona 0.00 0.16 0.0 0.00 0.00 Arkansas 0.00 0.16 2.2 0.00 0.35 California 0.00 0.16 4.5 0.00 0.71 Colorado 0.00 0.16 1.1 0.00 0.18 Connecticut 0.00 0.16 0.0 0.00 0.00 Delaware 0.00 0.16 0.0 0.00 0.00*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Florida 0.00 0.16 3.4 0.00 0.53 Georgia 0.00 0.16 2.2 0.00 0.35 Hawaii 0.00 0.16 0.0 0.00 0.00 Idaho 0.00 0.16 2.2 0.00 0.35 Illinois 0.00 0.16 2.2 0.00 0.35 Indiana 0.00 0.16 2.2 0.00 0.35 Iowa 0.00 0.16 7.8 0.00 1.24 Kansas 0.00 0.16 3.4 0.00 0.53 Kentucky 0.00 0.16 0.0 0.00 0.00 Louisiana 0.00 0.16 3.4 0.00 0.53 Maine 0.00 0.16 0.0 0.00 0.00 Maryland 0.00 0.16 0.0 0.00 0.00 Massachusetts 0.00 0.16 0.0 0.00 0.00 Michigan 0.00 0.16 0.0 0.00 0.00 Minnesota 0.00 0.16 3.4 0.00 0.53 Mississippi 0.00 0.16 2.2 0.00 0.35 Missouri 0.00 0.16 2.2 0.00 0.35 Montana 0.00 0.16 0.0 0.00 0.00 Nebraska 0.00 0.16 5.6 0.00 0.88 Nevada 0.00 0.16 0.0 0.00 0.00 New Hampshire 0.00 0.16 0.0 0.00 0.00 New Jersey 0.00 0.16 0.0 0.00 0.00 New Mexico 0.00 0.16 0.0 0.00 0.00 New York 0.00 0.16 0.0 0.00 0.00 North Carolina 0.00 0.16 1.1 0.00 0.18 North Dakota 0.00 0.16 3.4 0.00 0.53 Ohio 0.00 0.16 0.0 0.00 0.00 Oklahoma 0.00 0.16 4.5 0.00 0.71 Oregon 0.00 0.16 2.2 0.00 0.35 Pennsylvania 0.00 0.16 0.0 0.00 0.00 Rhode Island 0.00 0.16 0.0 0.00 0.00 South Carolina 0.00 0.16 0.0 0.00 0.00 South Dakota 0.00 0.16 3.4 0.00 0.53 Tennessee 0.00 0.16 0.0 0.00 0.00 Texas 0.00 0.16 5.6 0.00 0.88 Utah 0.00 0.16 0.0 0.00 0.00 Vermont 0.00 0.16 0.0 0.00 0.00 Virginia 0.00 0.16 0.0 0.00 0.00 Washington 0.00 0.16 4.5 0.00 0.71*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

West Virginia 0.00 0.16 0.0 0.00 0.00 Wisconsin 0.16 0.16 0.0 0.00 0.00 Wyoming 0.00 0.16 0.0 0.00 0.00 Puerto Rico 0.00 0.16 0.0 0.00 0.00 Other 0.00 0.16 0.0 0.00 0.00 Total, U.S. 73 0 11.5

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the thir d year, all private a pplicators with aerial certification must be recertified. EPA assumes that one-third of these app licators will recertify in each year. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-time aer ial applicators in the regions is assumed to be constant over time, existing aerial applicat ors in jurisdictions without a category will only need to obtain certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Recert-04; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 0.00 0.00 0.00 Alaska 0.00 0.00 0.00 Arizona 0.00 0.00 0.00 Arkansas 0.00 0.00 0.00 California 0.00 0.00 0.00 Colorado 0.00 0.00 0.00 Connecticut 0.00 0.00 0.00 Delaware 0.00 0.00 0.00 Florida 0.00 0.00 0.00 Georgia 0.00 0.00 0.00 Hawaii 0.00 0.00 0.00 Idaho 0.00 0.00 0.00 Illinois 0.00 0.00 0.00 Indiana 0.00 0.00 0.00 Iowa 0.01 0.00 0.01 Kansas 0.00 0.00 0.00 Kentucky 0.00 0.00 0.00 Louisiana 0.00 0.00 0.00 Maine 0.00 0.00 0.00 Maryland 0.00 0.00 0.00 Massachusetts 0.00 0.00 0.00 Michigan 0.00 0.00 0.00 Minnesota 0.00 0.00 0.00 Mississippi 0.00 0.00 0.00 Missouri 0.00 0.00 0.00 Montana 0.00 0.00 0.00 Nebraska 0.01 0.00 0.01 Nevada 0.00 0.00 0.00 New Hampshire 0.00 0.00 0.00 New Jersey 0.00 0.00 0.00 New Mexico 0.00 0.00 0.00 New York 0.00 0.00 0.00 North Carolina 0.00 0.00 0.00 North Dakota 0.00 0.00 0.00 Ohio 0.00 0.00 0.00 Oklahoma 0.00 0.00 0.00*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Oregon 0.00 0.00 0.00 Pennsylvania 0.00 0.00 0.00 Rhode Island 0.00 0.00 0.00 South Carolina 0.00 0.00 0.00 South Dakota 0.00 0.00 0.00 Tennessee 0.00 0.00 0.00 Texas 0.01 0.00 0.01 Utah 0.00 0.00 0.00 Vermont 0.00 0.00 0.00 Virginia 0.00 0.00 0.00 Washington 0.00 0.00 0.00 West Virginia 0.00 0.00 0.00 Wisconsin 0.00 0.00 0.00 Wyoming 0.00 0.00 0.00 Puerto Rico 0.00 0.00 0.00 Other 0.00 0.00 0.00

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Private Recert-04; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 0.08 0 0.08 U.S. (annualized value) 0.009 0 0.009*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5.2.2.7 Private Recert-05: Aerial Category Recertifi cation by Exam or 4 hour CEUs/training every five years

Step 2 - Calculate Costs per Existing Aerial Applicator of Potential Requirement Recertification requirement:

 All private aerial applicators take 4 categor y-specific CEUs; option to retake initial

 Period is 5 years ( freq i,t = 0.20)

Table: Private Recert-05; A erial Application Recertification by 3 CEU; Step 2; Cost of Potential Requirement per Existing Aerial Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 51.96 4 0.20 41.57

Table: Private Recert-05; Aerial Application Recertific ation by Exam; Step 2; Cost of Potential Requirement per Existing Aerial Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 51.96 6 0.20 62.35

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost pe r existing private aerial applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing private aerial applicator, presented in Step 2.

 The number of existing privat e aerial applicators (N Xst Pvt ) in each jurisdiction is obtained from the CPARD database or extrapolated to other states (see Chapter 3.3.3)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of private aerial applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of private aerial applicators unde r the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis as would be required under this option, but distributed over different time frame. EPA acknowledges that jurisdictions will have to revise their regulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not change.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Given the above: RC B = cost r,i, a B x N Xst Pvt Air RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Pvt Air
Values are presented in the table below.

Table: Private Recert-05; Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Recertification of Private Aerial Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Pvt Air RC B ($) RC P ($)
Alabama 0 42 0 0 0 Alaska 0 42 0 0 0 Arizona 0 42 0 0 0 Arkansas 0 42 2 0 83 California 0 42 4 0 166 Colorado 0 42 1 0 42 Connecticut 0 42 0 0 0 Delaware 0 42 0 0 0 Florida 0 42 3 0 125 Georgia 0 42 2 0 83 Hawaii 0 42 0 0 0 Idaho 0 42 2 0 83 Illinois 0 62 2 0 125 Indiana 0 42 2 0 83 Iowa 0 42 7 0 291 Kansas 0 62 3 0 187 Kentucky 0 42 0 0 0 Louisiana 0 42 3 0 125 Maine 0 42 0 0 0 Maryland 0 42 0 0 0 Massachusetts 0 42 0 0 0 Michigan 0 42 0 0 0 Minnesota 0 42 3 0 125 Mississippi 0 42 2 0 83 Missouri 0 42 2 0 83 Montana 0 42 0 0 0 Nebraska 0 42 5 0 208 Nevada 0 42 0 0 0 New Hampshire 0 42 0 0 0 New Jersey 0 42 0 0 0 New Mexico 0 42 0 0 0 New York 0 42 0 0 0 North Carolina 0 42 1 0 42*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

North Dakota 0 42 3 0 125 Ohio 0 42 0 0 0 Oklahoma 0 62 4 0 249 Oregon 0 42 2 0 83 Pennsylvania 0 42 0 0 0 Rhode Island 0 42 0 0 0 South Carolina 0 42 0 0 0 South Dakota 0 42 3 0 125 Tennessee 0 42 0 0 0 Texas 0 42 5 0 208 Utah 0 42 0 0 0 Vermont 0 42 0 0 0 Virginia 0 42 0 0 0 Washington 0 42 4 0 166 West Virginia 0 42 0 0 0 Wisconsin 62 62 0 0 0 Wyoming 0 42 0 0 0 Puerto Rico 0 42 0 0 0 Other Jurisdictions 0 42 0 0 0 Total, U.S. 65 0 2,8898

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existing aerial applicators not in cluded in the baseline regional costs (not certified) obtain initial ce rtification (see Appendix A2). The cost of recertification under th e proposal begins in the fourth year a nd would remain constant thereafter. The PV of costs under the proposal , at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଷ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 2.91 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 5.87*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Recert-05, Recertification of Private Aerial Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 0.0 0.0 0.0 Alaska 0.0 0.0 0.0 Arizona 0.0 0.0 0.0 Arkansas 0.5 0.0 0.5 California 1.0 0.0 1.0 Colorado 0.2 0.0 0.2 Connecticut 0.0 0.0 0.0 Delaware 0.0 0.0 0.0 Florida 0.7 0.0 0.7 Georgia 0.5 0.0 0.5 Hawaii 0.0 0.0 0.0 Idaho 0.5 0.0 0.5 Illinois 0.7 0.0 0.7 Indiana 0.5 0.0 0.5 Iowa 1.7 0.0 1.7 Kansas 1.1 0.0 1.1 Kentucky 0.0 0.0 0.0 Louisiana 0.7 0.0 0.7 Maine 0.0 0.0 0.0 Maryland 0.0 0.0 0.0 Massachusetts 0.0 0.0 0.0 Michigan 0.0 0.0 0.0 Minnesota 0.7 0.0 0.7 Mississippi 0.5 0.0 0.5 Missouri 0.5 0.0 0.5 Montana 0.0 0.0 0.0 Nebraska 1.2 0.0 1.2 Nevada 0.0 0.0 0.0 New Hampshire 0.0 0.0 0.0 New Jersey 0.0 0.0 0.0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

New Mexico 0.0 0.0 0.0 New York 0.0 0.0 0.0 North Carolina 0.2 0.0 0.2 North Dakota 0.7 0.0 0.7 Ohio 0.0 0.0 0.0 Oklahoma 1.5 0.0 1.5 Oregon 0.5 0.0 0.5 Pennsylvania 0.0 0.0 0.0 Rhode Island 0.0 0.0 0.0 South Carolina 0.0 0.0 0.0 South Dakota 0.7 0.0 0.7 Tennessee 0.0 0.0 0.0 Texas 1.2 0.0 1.2 Utah 0.0 0.0 0.0 Vermont 0.0 0.0 0.0 Virginia 0.0 0.0 0.0 Washington 1.0 0.0 1.0 West Virginia 0.0 0.0 0.0 Wisconsin 0.0 0.0 0.0 Wyoming 0.0 0.0 0.0 Puerto Rico 0.0 0.0 0.0 Other Jurisdictions 0.0 0.0 0.0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Table: Private Recert-05, Recertification of Private Aerial Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 17.0 0.0 17.0 U.S. (annualized value) 1.9 0.0 1.9 Per applicator incremental cost 0.030

State Costs of Administering Recertification Exam or Verifying Completion of Training for Application Method-Spec ific Categories

5.2.2.8 Private Recert-05: Administer Exam or 4-hour Training for Private Aerial Category Recertification: Every 5 Years

The costs are identical to Private Recert-04 b ecause proctoring a group of 50 examinees takes one hour of Jr technician’s time whether it is a 3-hour or 4-hour exam. Similarly, it takes a Jr technician one hour to verify completion of trai ning for 50 applicators wh ether it is a 3-hour or 4-hour training.

Chemigation Applications

Step 1 - Calculate Baseline Costs per Existing Pr ivate Applicator, Chemigation Applications

Note that the baseline cost estimate is identical for four options pertaining to the recertification of the chemigation category (under options Private Recert-01, 02, 04, and 05).

According to information on recertification, 4 ju risdictions (Illinois, Kansas, Oklahoma, and Wisconsin) require exams, all others require tr aining or provide for the option of training or exam. EPA assumes that trainings are typically the preferred option ev en where the level of effort would be similar.

Hawaii, Idaho, Nevada, Wisconsin, and Wyoming have established chemigation certification requirements.

Hawaii Recertification Requirements:

 5 CEUs of 60 minutes, or 5 hours; option to retake initial exam

 Each exam takes 1 hour to take plus 5 hours of prep time, or 6 hours, as per general recertification (s ee Appendix A.5.a.i)

 Period is 5 years ( freq i,t = 0.20)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification – Hawaii

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 51.96 5 0.20 51.96

Idaho Recertification Requirements:

 No category-specific requirements for rece rtification. Baseline costs are zero.

Nevada Recertification Requirements:

 Nevada requires 12 CEUs of 60 minutes for re certification, of which 2 must be in core material. EPA assumes, therefore, that 3 CEUs would be applicable to chemigation recertification.

 Period is 4 years ( freq i,t = 0.25)

Annual Baseline Cost per Commercial Applic ator for Aerial Recertification – Nevada

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 51.96 3 0.25 38.97

Wisconsin Recertification Requirements:

 Must retake initial exam fo r each category of certification

 Each exam takes 1 hour to take plus 5 hours of prep time, or 6 hours, as per general recertification (s ee Appendix A.5.a.i)

 Period is 5 years ( freq i,t = 0.20)

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification – Wisconsin

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 51.96 6 0.20 62.35

Wyoming Recertification Requirements:

 8 CEUs of 60 minutes, or 8 hours; option to retake initial exam

 Each exam takes 1 hour to take plus 5 hours of prep time, or 6 hours, as per general recertification (s ee Appendix A.5.a.i)

 Period is 5 years ( freq i,t = 0.20)*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Annual Baseline Cost per Commercial Applicat or for Aerial Recertification – Hawaii

Action Wage ($) Time (hours) Frequency (per year) Cost ($)
Aerial Recertification 51.96 8 0.20 83.13

All other jurisdictions do not ha ve a category and thus no recertif ication requirements. Baseline
costs are zero.

5.2.2.9 Private Recert-01: Chemigation Category Recertification by Exam or 3 hour CEUs/training every three years

Step 2 - Calculate Costs per Existing Chemigatio n Applicator of Potential Requirement Recertification requirement:

 All private chemigation applicators take 3 categ ory-specific CEUs; option to retake initial

 Period is 3 years ( freq i,t = 0.333)

Table: Private Recert-01; Chemigation Applic ation Recertification by 3 CEU; Step 2; Cost of Potential Requirement per Ex isting Chemigation Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Chemigation Recertification 51.96 3 0.333 51.96

Table: Private Recert-01; Chemigation Applic ation Recertification by Exam; Step 2; Cost of Potential Requirement per Ex isting Chemigation Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Chemigation Recertification 51.96 6 0.333 103.92

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing private chemigation applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing private chem igation applicator, pr esented in Step 2.

 The number of existing private chemigation applicators (N Xst Pvt Chem ) in each jurisdiction is obtained from the CPARD database or extrap olated to other states (see Chapter 3.3.3)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of priv ate chemigation applicators in the region.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of private chemigation applicators under the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis as would be required under this option, but distributed over different time frame. EPA acknowledges that jurisdictions will have to revise their regulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not change.

Given the above: RC B = cost r,i, a B x N Xst Pvt Chem RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Pvt Chem
Values are presented in the table below.

Table: Private Recert-01; Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Recertification of Private Chemigation Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Pvt Chem RC B ($) RC P ($)
Alabama 0 52 605 0 31,435 Alaska 0 52 0 0 0 Arizona 0 52 135 0 7,015 Arkansas 0 52 80 0 4,157 California 0 52 115 0 5,975 Colorado 0 52 68 0 3,533 Connecticut 0 52 13 0 675 Delaware 0 52 69 0 3,585 Florida 0 52 173 0 8,989 Georgia 0 52 1,478 0 76,796 Hawaii 52 52 14 727 727 Idaho 0 52 1,053 0 54,713 Illinois 0 104 9 0 935 Indiana 0 52 15 0 779 Iowa 0 52 31 0 1,611 Kansas 0 104 24 0 2,494 Kentucky 0 52 28 0 1,455 Louisiana 0 52 80 0 4,157 Maine 0 52 15 0 779 Maryland 0 52 40 0 2,078 Massachusetts 0 52 17 0 883 Michigan 0 52 31 0 1,611 Minnesota 0 52 11 0 572*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Mississippi 0 52 136 0 7,066 Missouri 0 52 16 0 831 Montana 0 52 179 0 9,301 Nebraska 0 52 11 0 572 Nevada 39 52 66 2,580 3,440 New Hampshire 0 52 12 0 624 New Jersey 0 52 44 0 2,286 New Mexico 0 52 45 0 2,338 New York 0 52 41 0 2,130 North Carolina 0 52 485 0 25,200 North Dakota 0 52 128 0 6,651 Ohio 0 52 31 0 1,611 Oklahoma 0 104 96 0 9,976 Oregon 0 52 177 0 9,197 Pennsylvania 0 52 51 0 2,650 Rhode Island 0 52 10 0 520 South Carolina 0 52 528 0 27,434 South Dakota 0 52 32 0 1,663 Tennessee 0 52 323 0 16,783 Texas 0 52 174 0 9,041 Utah 0 52 25 0 1,299 Vermont 0 52 13 0 675 Virginia 0 52 155 0 8,054 Washington 0 52 340 0 17,666 West Virginia 0 52 23 0 1,195 Wisconsin 62 104 79 4,926 8,210 Wyoming 83 52 57 4,739 2,962 Puerto Rico 0 52 34 0 1,767 Other Jurisdictions 0 52 0 0 0 Total, U.S. 7,415 12,972 396,096

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existi ng private chemigation applicators not included*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

in the baseline regional costs (n ot certified) obtain initial certi fication (see Appendix A2). The cost of recertification under the proposal begins in the four th year and would remain constant thereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଷ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 2.91 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 5.87

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Recert-01, Recertification of Pr ivate Chemigation Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 185 0 185 Alaska 0 0 0 Arizona 41 0 41 Arkansas 24 0 24 California 35 0 35 Colorado 21 0 21 Connecticut 4 0 4 Delaware 21 0 21 Florida 53 0 53 Georgia 451 0 451 Hawaii 6 6 0 Idaho 321 0 321 Illinois 5 0 5 Indiana 5 0 5 Iowa 9 0 9 Kansas 15 0 15 Kentucky 9 0 9 Louisiana 24 0 24 Maine 5 0 5 Maryland 12 0 12 Massachusetts 5 0 5*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Michigan 9 0 9 Minnesota 3 0 3 Mississippi 41 0 41 Missouri 5 0 5 Montana 55 0 55 Nebraska 3 0 3 Nevada 28 23 5 New Hampshire 4 0 4 New Jersey 13 0 13 New Mexico 14 0 14 New York 13 0 13 North Carolina 148 0 148 North Dakota 39 0 39 Ohio 9 0 9 Oklahoma 59 0 59 Oregon 54 0 54 Pennsylvania 16 0 16 Rhode Island 3 0 3 South Carolina 161 0 161 South Dakota 10 0 10 Tennessee 99 0 99 Texas 53 0 53 Utah 8 0 8 Vermont 4 0 4 Virginia 47 0 47 Washington 104 0 104 West Virginia 7 0 7 Wisconsin 63 43 19 Wyoming 42 42 0 Puerto Rico 10 0 10 Other Jurisdictions 0 0 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Recert-01, Recertification of Private Chemigation A pplicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 2,374 114 2,260 U.S. (annualized value) 270 13 257 Per applicator incremental cost 0.035

State Costs of Administering Recertification Exam or Verifying Completion of Training for Application Method-Spec ific Categories

The options analyzed in this sec tion address the requirements for re certification of applicators in the application method-specific categories as they apply to the administ ration of recertification exam or verifying completion of requ ired training for recertification.

Private Applicator
Although there are currently no federal private applicator certifica tion categories based on application method, some states do require certification in one or more of the application method-specific categories among those considered in the potential requir ements. For private certification categories consider ed as potential requirements (aerial, chemigation, general fumigation, soil fumigation, and non-soil fumigation) , there are different jurisdictions that currently require each. Jurisdicti ons that do not require a particular category have zero baseline cost for certification or recertific ation for that category. Most of the jurisdictions that require a given category in the baseline al so require recertification. EPA considers these recertification requirements in compliance with the proposed requirements.
For private applicators, the jurisdictions that have one or more of the application method-specific categories require recertification by passing a written exam or by completing the required training. The proposed rule also requires recertification in thes e categories by passing a written exam or by completing the required training.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that private applicators completed the required training. EPA assumes that it takes a state official one hour to conduct verification of the trai ning requirements for 50 private applicators. Therefore, whet her a jurisdiction recertifies by exam or training, its cost of administration is the same – one hour of a stat e official’s time for 50 private applicators.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5.2.2.10 Private Recert-01: Administer Exam or 3-hour Training for Private Chemigation Category Recertification: Every 3 Years

Step 1 - Calculate Baseline Costs

Jurisdictions that Require Recertification in Chemigation Category in the Baseline

In the baseline, 4 states (HI, ID, NV, & WY) recertify by training and WI by exam.

Assumptions:

 The baseline training requirements for the 4 states all exceed the proposed requirement

 These 4 states verify the completion of training requirements by their applicators

 Wisconsin requires chemigation recertificati on every 5 years and proctors the exam

 It takes a Jr. Technician 1 hour to proctor a group of 50 examinees

 The wage rate for a Jr Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Private Recert-01; Step 1; Baseline Cost per Applicator to Proctor Private Chemigation Category Recertification Exam; States Currently Requiring Proctoring of Chemigation Category Recertification Exam or Training

Action Wage ($/hour) Time (hours) Frequency Cost ($)
WI proctors recert exam 39.44 1 0.004 0.16 HI, ID, NV, & WY verify training 39.44 1 0.007 0.26

Jurisdictions that do Not Require Recertificat ion in Chemigation Category in the Baseline

The remaining 45 states, Puerto Rico, & Other do not have chemigation category in the baseline.

Table: Private Recert-01; Step 1; Baseline Cost per Applicator to Proctor Private Chemigation Category Recertification Exam; Jurisdictions Currently Not Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($)
None

– no category certification requirement 39.44 0 0 0.00

Total 0.00

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Private Recert-01; Step 2; Cost per Applicator to Proctor Privat e Chemigation Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category recertification

exam or verify training 39.44 1 0.007 0.26

Total 0.26

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N = number of private applicators ce rtified in chemigation category.

Given the above: RC B = cost r,i, a B x N RC t=3 P = cost r,i, P x N

Values are presented in the table below.

Table: Private Recert-01; Step 3; Total Annual Baseline and Potential Require ment Costs for Proctoring Chemigation Category Recertification Exam for Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, P ($) N RC B ($) RC t=3 P ($) Alabama 0.00 0.26 647 0 170 Alaska n/a 1 n/a n/a n/a n/a Arizona 0.00 0.26 144 0 38 Arkansas 0.00 0.26 86 0 23 California 0.00 0.26 123 0 32 Colorado 0.00 0.26 73 0 19 Connecticut 0.00 0.26 14 0 4*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Delaware 0.00 0.26 74 0 19 Florida 0.00 0.26 185 0 49 Georgia 0.00 0.26 1,581 0 416 Hawaii 0.26 0.26 15 4 4 Idaho 0.26 0.26 1,127 296 296 Illinois 0.00 0.26 10 0 3 Indiana 0.00 0.26 16 0 4 Iowa 0.00 0.26 33 0 9 Kansas 0.00 0.26 26 0 7 Kentucky 0.00 0.26 30 0 8 Louisiana 0.00 0.26 86 0 23 Maine 0.00 0.26 16 0 4 Maryland 0.00 0.26 43 0 11 Massachusetts 0.00 0.26 18 0 5 Michigan 0.00 0.26 33 0 9 Minnesota 0.00 0.26 12 0 3 Mississippi 0.00 0.26 146 0 38 Missouri 0.00 0.26 17 0 5 Montana 0.00 0.26 192 0 50 Nebraska 0.00 0.26 12 0 3 Nevada 0.26 0.26 71 19 19 New Hampshire 0.00 0.26 13 0 3 New Jersey 0.00 0.26 47 0 12 New Mexico 0.00 0.26 48 0 13 New York 0.00 0.26 44 0 12 North Carolina 0.00 0.26 519 0 136 North Dakota 0.00 0.26 137 0 36 Ohio 0.00 0.26 33 0 9 Oklahoma 0.00 0.26 103 0 27 Oregon 0.00 0.26 189 0 50 Pennsylvania 0.00 0.26 55 0 14 Rhode Island 0.00 0.26 11 0 3 South Carolina 0.00 0.26 565 0 149 South Dakota 0.00 0.26 34 0 9 Tennessee 0.00 0.26 346 0 91 Texas 0.00 0.26 186 0 49 Utah 0.00 0.26 27 0 7 Vermont 0.00 0.26 14 0 4 Virginia 0.00 0.26 166 0 44*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Washington 0.00 0.26 364 0 96 West Virginia 0.00 0.26 25 0 6 Wisconsin 0.16 0.26 85 13 22 Wyoming 0.26 0.26 61 16 16 Puerto Rico 0.00 0.26 36 0 10 Other n/a n/a n/a n/a n/a Total, U.S. 7,934 348 2,086

1 The "n/a" states currently do not have a chemigation category, and based on the applicator number data and trends in recent years (CPARD, 2013), EPA assum es that these states are not likely to create a chemigation category under the proposed rule.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third y ear, all private applicators with chemigation certification must be recertified. EPA assumes that one-third of these app licators will recertify in each year. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-tim e chemigation applicators in the regions is assumed to be constant over time, existing chemigation applicators in jurisdictions without a category will only need to obtai n certification once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Recert-01; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 1.16 0.00 1.16 Alaska 0.00 0.00 0.00 Arizona 0.26 0.00 0.26 Arkansas 0.15 0.00 0.15 California 0.22 0.00 0.22 Colorado 0.13 0.00 0.13 Connecticut 0.02 0.00 0.02 Delaware 0.13 0.00 0.13 Florida 0.33 0.00 0.33 Georgia 2.83 0.00 2.83 Hawaii 0.03 0.03 0.00 Idaho 2.60 2.60 0.00 Illinois 0.02 0.00 0.02 Indiana 0.03 0.00 0.03 Iowa 0.06 0.00 0.06 Kansas 0.05 0.00 0.05 Kentucky 0.05 0.00 0.05 Louisiana 0.15 0.00 0.15 Maine 0.03 0.00 0.03 Maryland 0.08 0.00 0.08 Massachusetts 0.03 0.00 0.03 Michigan 0.06 0.00 0.06 Minnesota 0.02 0.00 0.02 Mississippi 0.26 0.00 0.26 Missouri 0.03 0.00 0.03 Montana 0.34 0.00 0.34 Nebraska 0.02 0.00 0.02 Nevada 0.16 0.16 0.00 New Hampshire 0.02 0.00 0.02 New Jersey 0.08 0.00 0.08 New Mexico 0.09 0.00 0.09 New York 0.08 0.00 0.08 North Carolina 0.93 0.00 0.93*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

North Dakota 0.25 0.00 0.25 Ohio 0.06 0.00 0.06 Oklahoma 0.18 0.00 0.18 Oregon 0.34 0.00 0.34 Pennsylvania 0.10 0.00 0.10 Rhode Island 0.02 0.00 0.02 South Carolina 1.01 0.00 1.01 South Dakota 0.06 0.00 0.06 Tennessee 0.62 0.00 0.62 Texas 0.33 0.00 0.33 Utah 0.05 0.00 0.05 Vermont 0.02 0.00 0.02 Virginia 0.30 0.00 0.30 Washington 0.65 0.00 0.65 West Virginia 0.04 0.00 0.04 Wisconsin 0.18 0.12 0.06 Wyoming 0.14 0.14 0.00 Puerto Rico 0.07 0.00 0.07 Other 0.00 0.00 0.00

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Private Recert-01; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 15 3 12 U.S. (annualized value) 1.7 0.3 1.3*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5.2.2.11 Private Recert-02: Chemigation Category Recertification by Exam or 4 hour CEUs/training every three years

Step 2 - Calculate Costs per Existing Chemigatio n Applicator of Potential Requirement Recertification requirement:

 All private chemigation applicators take 4 categ ory-specific CEUs; option to retake initial

 Period is 3 years ( freq i,t = 0.333)

Table: Private Recert-02; Chemigation Applic ation Recertification by 4 CEU; Step 2; Cost of Potential Requirement per Ex isting Chemigation Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 51.96 4 0.333 69.28

Table: Private Recert-02; Chemigation Applic ation Recertification by Exam; Step 2; Cost of Potential Requirement per Ex isting Chemigation Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 51.96 6 0.333 103.92

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing private chemigation applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing private chem igation applicator, pr esented in Step 2.

 The number of existing private chemigation applicators (N Xst Pvt Chem ) in each jurisdiction is obtained from the CPARD database or extrap olated to other states (see Chapter 3.3.3)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of priv ate chemigation applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of private chemigation applicators under the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis as would be required under this option, but distributed over different time frame. EPA acknowledges that jurisdictions will have to revise their regulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not change.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Given the above: RC B = cost r,i, a B x N Xst Pvt Chem RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Pvt Chem
Values are presented in the table below.

Table: Private Recert-02; Chemigation Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Recertification of Private Chemigation Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Pvt Chem RC B ($) RC P ($)
Alabama 0 69 605 0 41,914 Alaska 0 69 0 0 0 Arizona 0 69 135 0 9,353 Arkansas 0 69 80 0 5,542 California 0 69 115 0 7,967 Colorado 0 69 68 0 4,711 Connecticut 0 69 13 0 901 Delaware 0 69 69 0 4,780 Florida 0 69 173 0 11,985 Georgia 0 69 1,478 0 102,394 Hawaii 52 69 14 727 970 Idaho 0 69 1,053 0 72,951 Illinois 0 104 9 0 935 Indiana 0 69 15 0 1,039 Iowa 0 69 31 0 2,148 Kansas 0 104 24 0 2,494 Kentucky 0 69 28 0 1,940 Louisiana 0 69 80 0 5,542 Maine 0 69 15 0 1,039 Maryland 0 69 40 0 2,771 Massachusetts 0 69 17 0 1,178 Michigan 0 69 31 0 2,148 Minnesota 0 69 11 0 762 Mississippi 0 69 136 0 9,422 Missouri 0 69 16 0 1,108 Montana 0 69 179 0 12,401 Nebraska 0 69 11 0 762 Nevada 39 69 66 2,580 4,586 New Hampshire 0 69 12 0 831 New Jersey 0 69 44 0 3,048 New Mexico 0 69 45 0 3,118 New York 0 69 41 0 2,840 North Carolina 0 69 485 0 33,600*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

North Dakota 0 69 128 0 8,868 Ohio 0 69 31 0 2,148 Oklahoma 0 104 96 0 9,976 Oregon 0 69 177 0 12,262 Pennsylvania 0 69 51 0 3,533 Rhode Island 0 69 10 0 693 South Carolina 0 69 528 0 36,579 South Dakota 0 69 32 0 2,217 Tennessee 0 69 323 0 22,377 Texas 0 69 174 0 12,055 Utah 0 69 25 0 1,732 Vermont 0 69 13 0 901 Virginia 0 69 155 0 10,738 Washington 0 69 340 0 23,555 West Virginia 0 69 23 0 1,593 Wisconsin 62 104 79 4,926 8,210 Wyoming 83 69 57 4,739 4,739 Puerto Rico 0 69 34 0 2,355 Other Jurisdictions 0 69 0 0 0 Total, U.S. 7,415 12,972 521,713

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existi ng private chemigation applicators not included in the baseline regional costs (n ot certified) obtain initial certi fication (see Appendix A2). The cost of recertification under the proposal begins in the four th year and would remain constant thereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଷ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 2.91 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 5.87*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Recert-02, Recertification of Pr ivate Chemigation Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 246 0 246 Alaska 0 0 0 Arizona 55 0 55 Arkansas 33 0 33 California 47 0 47 Colorado 28 0 28 Connecticut 5 0 5 Delaware 28 0 28 Florida 70 0 70 Georgia 601 0 601 Hawaii 8 6 1 Idaho 428 0 428 Illinois 5 0 5 Indiana 6 0 6 Iowa 13 0 13 Kansas 15 0 15 Kentucky 11 0 11 Louisiana 33 0 33 Maine 6 0 6 Maryland 16 0 16 Massachusetts 7 0 7 Michigan 13 0 13 Minnesota 4 0 4 Mississippi 55 0 55 Missouri 7 0 7 Montana 73 0 73 Nebraska 4 0 4 Nevada 34 23 12 New Hampshire 5 0 5 New Jersey 18 0 18*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

New Mexico 18 0 18 New York 17 0 17 North Carolina 197 0 197 North Dakota 52 0 52 Ohio 13 0 13 Oklahoma 59 0 59 Oregon 72 0 72 Pennsylvania 21 0 21 Rhode Island 4 0 4 South Carolina 215 0 215 South Dakota 13 0 13 Tennessee 131 0 131 Texas 71 0 71 Utah 10 0 10 Vermont 5 0 5 Virginia 63 0 63 Washington 138 0 138 West Virginia 9 0 9 Wisconsin 63 43 19 Wyoming 42 42 0 Puerto Rico 14 0 14 Other Jurisdictions 0 0 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Recert-02, Recertification of Private Chemigation A pplicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 3,102 114 2,988 U.S. (annualized value) 353 13 340*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Per applicator incremental cost 0.046

State Costs of Administering Recertification Exam or Verifying Completion of Training for Application Method-Spec ific Categories

5.2.2.12 Private Recert-02: Administer Exam or 4-hour Training for Private Chemigation Category Recertification: Every 3 Years

The costs are identical to Private Recert-01 b ecause proctoring a group of 50 examinees takes one hour of Jr technician’s time whether it is a 3-hour or 4-hour exam. Similarly, it takes a Jr technician one hour to verify completion of trai ning for 50 applicators wh ether it is a 3-hour or 4-hour training.

5.2.2.13 Private Recert-04: Chemigation Category Recertification by Exam or 3 hour CEUs/training every five years

Step 2 - Calculate Costs per Existing Chemigatio n Applicator of Potential Requirement Recertification requirement:

 All private chemigation applicators take 3 categ ory-specific CEUs; option to retake initial

 Period is 5 years ( freq i,t = 0.20)

Table: Private Recert-04; Chemigation Applic ation Recertification by 3 CEU; Step 2; Cost of Potential Requirement per Ex isting Chemigation Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 51.96 3 0.20 31.18

Table: Private Recert-04; Chemigation Applic ation Recertification by Exam; Step 2; Cost of Potential Requirement per Ex isting Chemigation Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 51.96 6 0.20 62.35

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing private chemigation applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing private chem igation applicator, pr esented in Step 2.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 The number of existing private chemigation applicators (N Xst Pvt Chem ) in each jurisdiction is obtained from the CPARD database or extrap olated to other states (see Chapter 3.3.3)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of priv ate chemigation applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of private chemigation applicators under the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis as would be required under this option, but distributed over different time frame. EPA acknowledges that jurisdictions will have to revise their regulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not change.

Given the above: RC B = cost r,i, a B x N Xst Pvt Chem RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Pvt Chem
Values are presented in the table below.

Table: Private Recert-04; Chemigation Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Recertification of Private Chemigation Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Pvt Chem RC B ($) RC P ($)
Alabama 0 31 605 0 18,861 Alaska 0 31 0 0 0 Arizona 0 31 135 0 4,209 Arkansas 0 31 80 0 2,494 California 0 31 115 0 3,585 Colorado 0 31 68 0 2,120 Connecticut 0 31 13 0 405 Delaware 0 31 69 0 2,151 Florida 0 31 173 0 5,393 Georgia 0 31 1,478 0 46,077 Hawaii 52 31 14 727 727 Idaho 0 31 1,053 0 32,828 Illinois 0 62 9 0 561 Indiana 0 31 15 0 468 Iowa 0 31 31 0 966 Kansas 0 62 24 0 1,496 Kentucky 0 31 28 0 873 Louisiana 0 31 80 0 2,494 Maine 0 31 15 0 468*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Maryland 0 31 40 0 1,247 Massachusetts 0 31 17 0 530 Michigan 0 31 31 0 966 Minnesota 0 31 11 0 343 Mississippi 0 31 136 0 4,240 Missouri 0 31 16 0 499 Montana 0 31 179 0 5,580 Nebraska 0 31 11 0 343 Nevada 39 31 66 2,580 2,580 New Hampshire 0 31 12 0 374 New Jersey 0 31 44 0 1,372 New Mexico 0 31 45 0 1,403 New York 0 31 41 0 1,278 North Carolina 0 31 485 0 15,120 North Dakota 0 31 128 0 3,990 Ohio 0 31 31 0 966 Oklahoma 0 62 96 0 5,986 Oregon 0 31 177 0 5,518 Pennsylvania 0 31 51 0 1,590 Rhode Island 0 31 10 0 312 South Carolina 0 31 528 0 16,461 South Dakota 0 31 32 0 998 Tennessee 0 31 323 0 10,070 Texas 0 31 174 0 5,425 Utah 0 31 25 0 779 Vermont 0 31 13 0 405 Virginia 0 31 155 0 4,832 Washington 0 31 340 0 10,600 West Virginia 0 31 23 0 717 Wisconsin 62 62 79 4,926 4,926 Wyoming 83 31 57 4,739 4,739 Puerto Rico 0 31 34 0 1,060 Other Jurisdictions 0 31 0 0 0 Total, U.S. 7,415 12,972 241,426

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existi ng private chemigation applicators not included in the baseline regional costs (n ot certified) obtain initial certi fication (see Appendix A2). The cost of recertification under the proposal begins in the four th year and would remain constant thereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଷ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 2.91 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 5.87

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Recert-04, Recertification of Pr ivate Chemigation Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 111 0 111 Alaska 0 0 0 Arizona 25 0 25 Arkansas 15 0 15 California 21 0 21 Colorado 12 0 12 Connecticut 2 0 2 Delaware 13 0 13 Florida 32 0 32 Georgia 271 0 271 Hawaii 6 6 0 Idaho 193 0 193 Illinois 3 0 3 Indiana 3 0 3 Iowa 6 0 6*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Kansas 9 0 9 Kentucky 5 0 5 Louisiana 15 0 15 Maine 3 0 3 Maryland 7 0 7 Massachusetts 3 0 3 Michigan 6 0 6 Minnesota 2 0 2 Mississippi 25 0 25 Missouri 3 0 3 Montana 33 0 33 Nebraska 2 0 2 Nevada 23 23 0 New Hampshire 2 0 2 New Jersey 8 0 8 New Mexico 8 0 8 New York 8 0 8 North Carolina 89 0 89 North Dakota 23 0 23 Ohio 6 0 6 Oklahoma 35 0 35 Oregon 32 0 32 Pennsylvania 9 0 9 Rhode Island 2 0 2 South Carolina 97 0 97 South Dakota 6 0 6 Tennessee 59 0 59 Texas 32 0 32 Utah 5 0 5 Vermont 2 0 2 Virginia 28 0 28 Washington 62 0 62 West Virginia 4 0 4 Wisconsin 43 43 0 Wyoming 42 42 0 Puerto Rico 6 0 6 Other Jurisdictions 0 0 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Recert-04, Recertification of Private Chemigation A pplicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 1,456 114 1,342 U.S. (annualized value) 166 13 153 Per applicator incremental cost 0.021

State Costs of Administering Recertification Exam or Verifying Completion of Training for Application Method-Spec ific Categories

The options analyzed in this sec tion address the requirements for re certification of applicators in the application method-specific categories as they apply to the administ ration of recertification exam or verifying completion of requ ired training for recertification.

Private Applicator
Although there are currently no federal private applicator certifica tion categories based on application method, some states do require certification in one or more of the application method-specific categories among those considered in the potential requir ements. For private certification categories consider ed as potential requirements (aerial, chemigation, general fumigation, soil fumigation, and non-soil fumigation) , there are different jurisdictions that currently require each. Jurisdicti ons that do not require a particular category have zero baseline cost for certification or recertific ation for that category. Most of the jurisdictions that require a given category in the baseline al so require recertification. EPA considers these recertification requirements in compliance with the proposed requirements.
For private applicators, the jurisdictions that have one or more of the application method-specific categories require recertification by passing a written exam or by completing the required training. The proposed rule also requires recertification in thes e categories by passing a written exam or by completing the required training.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that private applicators completed the required training. EPA assumes that it*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

takes a state official one hour to conduct verification of the trai ning requirements for 50 private applicators. Therefore, whet her a jurisdiction recertifies by exam or training, its cost of administration is the same – one hour of a stat e official’s time for 50 private applicators.

5.2.2.14 Private Recert-04: Administer Exam or 3-hour Training for Private Chemigation Category Recertification: Every 5 Years

Step 1 - Calculate Baseline Costs

Jurisdictions that Require Recertification in Chemigation Category in the Baseline

In the baseline, 4 states (HI, ID, NV, & WY) recertify by training and WI by exam.

Assumptions:

 The baseline training requirements for the 4 states all exceed the proposed requirement

 These 4 states verify the completion of training requirements by their applicators

 Wisconsin requires chemigation recertificati on every 5 years and proctors the exam

 It takes a Jr. Technician 1 hour to proctor a group of 50 examinees

 The wage rate for a Jr Technician is $39.44 (BLS, 2013c); see Chapter 3.3.5

Table: Private Recert-04; Step 1; Baseline Cost per Applicator to Proctor Private Chemigation Category Recertification Exam; States Currently Requiring Proctoring of Chemigation Category Recertification Exam or Training

Action Wage ($/hour) Time (hours) Frequency Cost ($)
WI proctors recert exam 39.44 1 0.004 0.16 HI, ID, NV, & WY verify training 39.44 1 0.007 0.26

Jurisdictions that do Not Require Recertificat ion in Chemigation Category in the Baseline

The remaining 45 states, Puerto Rico, & Other do not have chemigation category in the baseline.

Table: Private Recert-04; Step 1; Baseline Cost per Applicator to Proctor Pr ivate Chemigation Cate gory Recertification Exam; Jurisdictions Currently Not Requiring Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($)
None

– no category certification requirement 39.44 0 0 0.00

Total 0.00*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Private Recert-04; Step 2; Cost per Applicator to Proctor Privat e Chemigation Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category recertification

exam or verify training 39.44 1 0.004 0.16

Total 0.16

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N = number of private applicators ce rtified in chemigation category.

Given the above: RC B = cost r,i, a B x N RC t=3 P = cost r,i, P x N

Values are presented in the table below.

Table: Private Recert-04; Step 3; Total Annual Baseline and Potential Require ment Costs for Proctoring Chemigation Category Recertification Exam for Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, P ($) N RC B ($) RC t=3 P ($) Alabama 0.00 0.16 647 0 102 Alaska n/a 1 n/a n/a n/a n/a Arizona 0.00 0.16 144 0 23 Arkansas 0.00 0.16 86 0 14*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

California 0.00 0.16 123 0 19 Colorado 0.00 0.16 73 0 11 Connecticut 0.00 0.16 14 0 2 Delaware 0.00 0.16 74 0 12 Florida 0.00 0.16 185 0 29 Georgia 0.00 0.16 1,581 0 249 Hawaii 0.26 0.16 15 4 2 Idaho 0.26 0.16 1,127 296 178 Illinois 0.00 0.16 10 0 2 Indiana 0.00 0.16 16 0 3 Iowa 0.00 0.16 33 0 5 Kansas 0.00 0.16 26 0 4 Kentucky 0.00 0.16 30 0 5 Louisiana 0.00 0.16 86 0 14 Maine 0.00 0.16 16 0 3 Maryland 0.00 0.16 43 0 7 Massachusetts 0.00 0.16 18 0 3 Michigan 0.00 0.16 33 0 5 Minnesota 0.00 0.16 12 0 2 Mississippi 0.00 0.16 146 0 23 Missouri 0.00 0.16 17 0 3 Montana 0.00 0.16 192 0 30 Nebraska 0.00 0.16 12 0 2 Nevada 0.26 0.16 71 19 11 New Hampshire 0.00 0.16 13 0 2 New Jersey 0.00 0.16 47 0 7 New Mexico 0.00 0.16 48 0 8 New York 0.00 0.16 44 0 7 North Carolina 0.00 0.16 519 0 82 North Dakota 0.00 0.16 137 0 22 Ohio 0.00 0.16 33 0 5 Oklahoma 0.00 0.16 103 0 16 Oregon 0.00 0.16 189 0 30 Pennsylvania 0.00 0.16 55 0 9 Rhode Island 0.00 0.16 11 0 2 South Carolina 0.00 0.16 565 0 89 South Dakota 0.00 0.16 34 0 5 Tennessee 0.00 0.16 346 0 55 Texas 0.00 0.16 186 0 29*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Utah 0.00 0.16 27 0 4 Vermont 0.00 0.16 14 0 2 Virginia 0.00 0.16 166 0 26 Washington 0.00 0.16 364 0 57 West Virginia 0.00 0.16 25 0 4 Wisconsin 0.16 0.16 85 13 13 Wyoming 0.26 0.16 61 16 10 Puerto Rico 0.00 0.16 36 0 6 Other n/a n/a n/a n/a n/a Total, U.S. 7,934 348 1,252

1 The "n/a" states currently do not have a chemigation category, and based on the applicator number data and trends in recent years (CPARD, 2013), EPA assum es that these states are not likely to create a chemigation category under the proposed rule.

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third y ear, all private applicators with chemigation certification must be recertified. EPA assumes that one-third of these app licators will recertify in each year. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-tim e chemigation applicators in the regions is assumed to be constant over time, existing chemigation applicators in jurisdictions without a category will only need to obtai n certification once, when the rule is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Recert-04; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 0.70 0.00 0.70 Alaska 0.00 0.00 0.00 Arizona 0.16 0.00 0.16 Arkansas 0.09 0.00 0.09 California 0.13 0.00 0.13 Colorado 0.08 0.00 0.08 Connecticut 0.01 0.00 0.01 Delaware 0.08 0.00 0.08 Florida 0.20 0.00 0.20 Georgia 1.70 0.00 1.70 Hawaii 0.02 0.02 0.00 Idaho 1.56 1.56 0.00 Illinois 0.01 0.00 0.01 Indiana 0.02 0.00 0.02 Iowa 0.04 0.00 0.04 Kansas 0.03 0.00 0.03 Kentucky 0.03 0.00 0.03 Louisiana 0.09 0.00 0.09 Maine 0.02 0.00 0.02 Maryland 0.05 0.00 0.05 Massachusetts 0.02 0.00 0.02 Michigan 0.04 0.00 0.04 Minnesota 0.01 0.00 0.01 Mississippi 0.16 0.00 0.16 Missouri 0.02 0.00 0.02 Montana 0.21 0.00 0.21 Nebraska 0.01 0.00 0.01 Nevada 0.10 0.10 0.00 New Hampshire 0.01 0.00 0.01 New Jersey 0.05 0.00 0.05*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

New Mexico 0.05 0.00 0.05 New York 0.05 0.00 0.05 North Carolina 0.56 0.00 0.56 North Dakota 0.15 0.00 0.15 Ohio 0.04 0.00 0.04 Oklahoma 0.11 0.00 0.11 Oregon 0.20 0.00 0.20 Pennsylvania 0.06 0.00 0.06 Rhode Island 0.01 0.00 0.01 South Carolina 0.61 0.00 0.61 South Dakota 0.04 0.00 0.04 Tennessee 0.37 0.00 0.37 Texas 0.20 0.00 0.20 Utah 0.03 0.00 0.03 Vermont 0.01 0.00 0.01 Virginia 0.18 0.00 0.18 Washington 0.39 0.00 0.39 West Virginia 0.03 0.00 0.03 Wisconsin 0.12 0.12 0.00 Wyoming 0.08 0.08 0.00 Puerto Rico 0.04 0.00 0.04 Other 0.00 0.00 0.00

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Private Recert-04; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 10 3 7 U.S. (annualized value) 1.2 0.3 0.8*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5.2.2.15 Private Recert-05: Chemigation Category Recertification by Exam or 4 hour CEUs/training every five years

Step 2 - Calculate Costs per Existing Chemigatio n Applicator of Potential Requirement Recertification requirement:

 All private chemigation applicators take 4 categ ory-specific CEUs; option to retake initial

 Period is 5 years ( freq i,t = 0.20)

Table: Private Recert-05; Chemigation Applic ation Recertification by 4 CEU; Step 2; Cost of Potential Requirement per Ex isting Chemigation Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 51.96 4 0.20 41.57

Table: Private Recert-05; Chemigation Applic ation Recertification by Exam; Step 2; Cost of Potential Requirement per Ex isting Chemigation Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Aerial Recertification 51.96 6 0.20 62.35

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing private chemigation applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing private chem igation applicator, pr esented in Step 2.

 The number of existing private chemigation applicators (N Xst Pvt Chem ) in each jurisdiction is obtained from the CPARD database or extrap olated to other states (see Chapter 3.3.3)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of priv ate chemigation applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of private chemigation applicators under the potential requirement.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis as would be required under this option, but distributed over different time frame. EPA acknowledges that jurisdictions will have to*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

revise their regulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not change.

Given the above: RC B = cost r,i, a B x N Xst Pvt Chem RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Pvt Chem
Values are presented in the table below.

Table: Private Recert-05; Chemigation Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Recertification of Private Chemigation Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Pvt Chem RC B ($) RC P ($)
Alabama 0 42 605 0 25,148 Alaska 0 42 0 0 0 Arizona 0 42 135 0 5,612 Arkansas 0 42 80 0 3,325 California 0 42 115 0 4,780 Colorado 0 42 68 0 2,827 Connecticut 0 42 13 0 540 Delaware 0 42 69 0 2,868 Florida 0 42 173 0 7,191 Georgia 0 42 1,478 0 61,437 Hawaii 52 42 14 727 727 Idaho 0 42 1,053 0 43,770 Illinois 0 62 9 0 561 Indiana 0 42 15 0 624 Iowa 0 42 31 0 1,289 Kansas 0 62 24 0 1,496 Kentucky 0 42 28 0 1,164 Louisiana 0 42 80 0 3,325 Maine 0 42 15 0 624 Maryland 0 42 40 0 1,663 Massachusetts 0 42 17 0 707 Michigan 0 42 31 0 1,289 Minnesota 0 42 11 0 457 Mississippi 0 42 136 0 5,653 Missouri 0 42 16 0 665 Montana 0 42 179 0 7,441 Nebraska 0 42 11 0 457 Nevada 39 42 66 2,580 2,752 New Hampshire 0 42 12 0 499 New Jersey 0 42 44 0 1,829*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

New Mexico 0 42 45 0 1,871 New York 0 42 41 0 1,704 North Carolina 0 42 485 0 20,160 North Dakota 0 42 128 0 5,321 Ohio 0 42 31 0 1,289 Oklahoma 0 62 96 0 5,986 Oregon 0 42 177 0 7,357 Pennsylvania 0 42 51 0 2,120 Rhode Island 0 42 10 0 416 South Carolina 0 42 528 0 21,948 South Dakota 0 42 32 0 1,330 Tennessee 0 42 323 0 13,426 Texas 0 42 174 0 7,233 Utah 0 42 25 0 1,039 Vermont 0 42 13 0 540 Virginia 0 42 155 0 6,443 Washington 0 42 340 0 14,133 West Virginia 0 42 23 0 956 Wisconsin 62 62 79 4,926 4,926 Wyoming 83 42 57 4,739 4,739 Puerto Rico 0 42 34 0 1,413 Other Jurisdictions 0 42 0 0 0 Total, U.S. 7,415 12,972 315,068

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existi ng private chemigation applicators not included in the baseline regional costs (n ot certified) obtain initial certi fication (see Appendix A2). The cost of recertification under the proposal begins in the four th year and would remain constant thereafter. The PV of costs under the proposal, at a 3% discount rate, is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଷ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 2.91 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 5.87

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Recert-05, Recertification of Pr ivate Chemigation Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 148 0 148 Alaska 0 0 0 Arizona 33 0 33 Arkansas 20 0 20 California 28 0 28 Colorado 17 0 17 Connecticut 3 0 3 Delaware 17 0 17 Florida 42 0 42 Georgia 361 0 361 Hawaii 6 6 0 Idaho 257 0 257 Illinois 3 0 3 Indiana 4 0 4 Iowa 8 0 8 Kansas 9 0 9 Kentucky 7 0 7 Louisiana 20 0 20 Maine 4 0 4 Maryland 10 0 10 Massachusetts 4 0 4 Michigan 8 0 8 Minnesota 3 0 3 Mississippi 33 0 33 Missouri 4 0 4*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Montana 44 0 44 Nebraska 3 0 3 Nevada 24 23 1 New Hampshire 3 0 3 New Jersey 11 0 11 New Mexico 11 0 11 New York 10 0 10 North Carolina 118 0 118 North Dakota 31 0 31 Ohio 8 0 8 Oklahoma 35 0 35 Oregon 43 0 43 Pennsylvania 12 0 12 Rhode Island 2 0 2 South Carolina 129 0 129 South Dakota 8 0 8 Tennessee 79 0 79 Texas 42 0 42 Utah 6 0 6 Vermont 3 0 3 Virginia 38 0 38 Washington 83 0 83 West Virginia 6 0 6 Wisconsin 43 43 0 Wyoming 42 42 0 Puerto Rico 8 0 8 Other Jurisdictions 0 0 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Recert-05, Recertification of Private Chemigation A pplicators; Step 6;*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 1,888 114 1,774 U.S. (annualized value) 215 13 202 Per applicator incremental cost 0.027

State Costs of Administering Recertification Exam or Verifying Completion of Training for Application Method-Spec ific Categories

5.2.2.16 Private Recert-05: Administer Exam or 4-hour Training for Private Chemigation Category Recertification: Every 5 Years

The costs are identical to Private Recert-04 b ecause proctoring a group of 50 examinees takes one hour of Jr technician’s time whether it is a 3-hour or 4-hour exam. Similarly, it takes a Jr technician one hour to verify completion of trai ning for 50 applicators wh ether it is a 3-hour or 4-hour training.

General Fumigation Applications

Step 1 - Calculate Baseline Costs per Existing Private Applicator, General Fumigation

Note that the baseline cost estimate is identical for all options pertaining to the recertification of the fumigation category (under options Private Recert-01, 02, 04, and 05).

According to information on recertification, 4 ju risdictions (Illinois, Kansas, Oklahoma, and Wisconsin) require exams, all others require tr aining or provide for the option of training or exam. EPA assumes that trainings are typically the preferred option ev en where the level of effort would be similar.

40 jurisdictions and those aggr egated under ‘Other Jurisdictio n’ do not have a fumigation certification requirement and thus no recertification requirements. Baseline cost is zero for the following jurisdictions:

Alabama Alaska Arkansas California Colorado Connecticut Delaware Florida Georgia Idaho Illinois Indiana Kansas Kentucky Louisiana Maine Massachusetts Michigan Mississippi Missouri Montana Nebraska New Hampshire New Jersey New Mexico New York North Carolina*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

Oklahoma Oregon Rhode Island South Carolina South Dakota Tennessee Texas Vermont Virginia Washington West Virginia Wyoming Puerto Rico Other Jurisdictions*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5

‐ 608 The cost estimate for other jurisdictions is the ex pected annual cost per commercial applicator in the state, for recertification. The estimate is calculated as

ݐݏ݋ܿ ைெ஼,௜,௥ ஻ ൌ ݓ COM ∙ ܪ ௥,௜,஼ைெ ஻ ݍ݁ݎ݂൫∙ ௧,௜ ݐݎ%ܿ݁ ∙ ௜ ൯

where cost r,i,COM B is the baseline cost ( B ) per private applicator ( COM ) for the recertification requirement ( r ) in jurisdiction ( i ), w COM is the hourly wage rate (opportunity cost) for a commercial applicator; freq i,t is the reciprocal of the recertification time period and represents either the fraction of private applicators obt aining recertification (if, for example, by examination) or the fraction of Cumulative Educ ation Units (CEUs) an applicator obtains each year to meet the total number required; and % cert i is the proportion of fumigators in jurisdiction i with certification in a fumigation category, si nce some states have a soil fumigation category, some have a non-soil fumigation cate gory, and some states have both.

Arizona Recertification Requirements:

 3 CEUs of 50 minutes, or 2.5 hours; option to retake initial exam

 Each exam takes 1 hour to take plus 5 hours of prep time, or 6 hours, as per general recertification (s ee Appendix A.5.a.i)

 Period is 1 year ( freq i,t = 1.0)

 Arizona has a non-soil fumigation category. The average number of non-soil fumigation certifications is 28.5 (CPARD, 2014) and EP A estimates there are 46.6 private soil fumigators in Arizona; % cert AL = 28.5/(28.5+48.6) = 0.380

Annual Baseline Cost per Private Applicator for Recertification, General Fumigation – Arizona

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 51.96 5 1.0 0.080 49.30

Hawaii Recertification Requirements:

 5 CEUs of 60 minutes, or 5 hours; option to retake initial exam

 Each exam takes 1 hour to take plus 5 hours of prep time, or 6 hours, as per general recertification (s ee Appendix A.5.a.i)

 Period is 5 years ( freq i,t = 0.20)

 Hawaii has a soil fumigation category. The average number of soil fumigation certifications is 26.7 (CPARD, 2014) and EPA estimates there are 21.0 private non-soil fumigators in Hawaii; % cert AL = 26.7/(26.7+21.0) = 0.559*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5

‐ 609 Annual Baseline Cost per Private Applicator for Recertification, General Fumigation – Hawaii

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 51.96 5 0.20 0.559 29.07

Iowa Recertification Requirements:

 3 CEUs of 120 minutes, or 6 hours; option to retake initial exam

 Each exam takes 1 hour to take plus 5 hours of prep time, or 6 hours, as per general recertification (s ee Appendix A.5.a.i)

 Period is 3 years ( freq i,t = 0.333)

 Iowa has a non-soil fumigation category. The average number of non-soil fumigation certifications is 53.3 (CPARD, 2014) and EPA estimates there are 734 private soil fumigators in Iowa; % cert AL = 53.3/(53.3+734) = 0.068

Annual Baseline Cost per Private Applicator for Recertification, General Fumigation – Iowa

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 51.96 6 0.333 0.068 7.04

Minnesota Recertification Requirements:

 Exam, with EPA assumes requires 1 hour to take plus 5 hours of prep time, or 6 hours, as per general recer tification (see Appendix A.5.a.i)

 Period is 3 years ( freq i,t = 0.333)

 Minnesota has a both a soil and a non-soil fumigation category. The average number of non-soil fumigation certificati ons is 39.0 and the average number of soil fumigation certifications is 8.0 (CPARD, 2014); % cert AL = 1.0

Annual Baseline Cost per Private Applicator for Recertification, General Fumigation – Minnesota

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 51.96 6 0.333 1.0 103.92

Nevada Recertification Requirements:

 Nevada requires 12 CEUs of 60 minutes for re certification, of which 2 must be in core material. EPA assumes, therefore, that 3 CEUs would be applicable to fumigation recertification.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 610  Period is 4 years ( freq i,t = 0.25)

 Nevada has a both a soil and a non-soil fumi gation category. The average number of non-soil fumigation certificati ons is 59.7 and the average number of soil fumigation certifications is 21.3 (CPARD, 2014); % cert AL = 1.0

Annual Baseline Cost per Private Applicator for Recertification, General Fumigation – Nevada

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 51.96 3 0.25 1.0 38.97

North Dakota Recertification Requirements:

 1 CEU of 240 minutes, or 4 hours; option to retake initial exam

 Each exam takes 1 hour to take plus 5 hours of prep time, or 6 hours, as per general recertification (s ee Appendix A.5.a.i)

 Period is 3 years ( freq i,t = 0.333)

 North Dakota has a non-soil fumigation categ ory. The average number of non-soil fumigation certifications is 1,005 (CPARD , 2014) and EPA estimates there are 347 private soil fumigators in North Dakota; % cert AL = 1,005/(1,005+347) = 0.743

Annual Baseline Cost per Private Applicator for Recertification, General Fumigation – North Dakota

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 51.96 4 0.333 0.743 51.51

Ohio Recertification Requirements:

 5 CEUs of 60 minutes, or 5 hours; option to retake initial exam

 Each exam takes 1 hour to take plus 5 hours of prep time, or 6 hours, as per general recertification (s ee Appendix A.5.a.i)

 Period is 3 years ( freq i,t = 0.333)

 Ohio has a soil fumigation category. The average number of soil fumigation certifications is 475 (CPARD, 2014) and EPA estimates there are 29.0 private non-soil fumigators in Ohio; % cert AL = 475/(475+29.0) = 0.943

Annual Baseline Cost per Private Applicator for Recertification, General Fumigation – Ohio

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 51.96 5 0.333 0.943 81.62*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5

‐ 611 Pennsylvania Recertification Requirements:

 Pennsylvania requires 2 CEUs of 30 minutes, or one hour; option to retake initial exam

 Each exam takes 1 hour to take plus 5 hours of prep time, or 6 hours, as per general recertification (s ee Appendix A.5.a.i)

 Period is 3 years ( freq i,t = 0.333)

 Pennsylvania has a both a soil and a non-soil fumigation category. The average number of non-soil fumigation certifications is 165 and the average number of soil fumigation certifications is 79.2 (CPARD, 2014); % cert AL = 1.0

Annual Baseline Cost per Private Applicator for Recertification, General Fumigation – Pennsylvania

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 51.96 1 0.333 1.0 17.32

Utah Recertification Requirements:

 6 CEUs of 60 minutes, or 6 hours; option to retake initial exam

 Each exam takes 1 hour to take plus 5 hours of prep time, or 6 hours, as per general recertification (s ee Appendix A.5.a.i)

 Period is 3 years ( freq i,t = 0.333)

 Utah has a non-soil fumigation category. The average number of non-soil fumigation certifications is 59.8 (CPARD, 2014) and EP A estimates there are 32.4 private soil fumigators in Utah; % cert AL = 59.8/(59.8+32.4) = 0.649

Annual Baseline Cost per Private Applicator for Recertification, General Fumigation – Utah

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 51.96 6 0.333 0.649 67.45

Wisconsin Recertification Requirements:

 Must retake initial exam fo r each category of certification

 Each exam takes 1 hour to take plus 5 hours of prep time, or 6 hours, as per general recertification (s ee Appendix A.5.a.i)

 Period is 5 years ( freq i,t = 0.20)

 Wisconsin has a soil fumigation category. The average number of soil fumigation certifications is 42.3 (CPARD, 2014) and EPA estimates there are 23.0 private non-soil fumigators in Wisconsin; % cert AL = 42.3/(42.3+23.0) = 0.648*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5

‐ 612 Annual Baseline Cost per Private Applicator for Recertification, General Fumigation – Wisconsin

Action Wage ($) Time (hours) Frequency (per year) % with certification Cost ($)
Recertification 51.96 6 0.20 0.648 40.40

5.2.2.17 Private Recert-01: General Fumigation Catego ry Recertification by Exam or 3 hour CEUs/training every three years

Step 2 - Calculate Costs per Existing Fumigant Applicator of Potential Requirement Recertification requirement:

 All private fumigant applicat ors take 3 category-specific CE Us; option to retake initial

 Period is 3 years ( freq i,t = 0.333)

Table: Private Recert-01; Fumigant Applic ation Recertification by 3 CEU; Step 2; Cost of Potential Requirement per Existing Fumigant Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Fumigation Recertification 51.96 3 0.333 51.96

Table: Private Recert-01; Fumigant Applic ation Recertification by Exam; Step 2; Cost of Potential Requirement per Existing Fumigant Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Fumigation Recertification 51.96 6 0.333 103.92

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing private fumigant applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing private fu migant applicator, presented in Step 2.

 The number of existing private fumigant applicators (N Xst Pvt Fum ) in each jurisdiction is obtained from the CPARD databa se or extrapolated to othe r states (see Chapter 3.3.3)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of private fumiga nt applicators in the region.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5

‐ 613  The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of private fumigant applicators under the potential requirement.

 EPA assumes that private appl icators do not engage in both soil and non-soil fumigation, given the differences in chemicals used and a pplication methods. To the extent that some applicators engage in both activities, this im plies that estimates of the baseline cost and the cost under the potential re quirement are biased upward. Th e greater bias would in the estimate of the cost under the potential requ irement because it in cludes all applicators whereas the baseline includes only the subset of applicators in jurisdictions with current fumigation categories. As a result, the esti mate of incremental cost is also biased upward.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis as would be required under this option, but distributed over different time frame. EPA acknowledges that jurisdictions will have to revise their regulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not change.

Given the above: RC B = cost r,i, a B x N Xst Pvt Fum RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Pvt Fum
Values are presented in the table below.

Table: Private Recert-01; Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Recertification of Private Fumigant Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Pvt Fum RC B ($) RC P ($)
Alabama 0 52 194 0 10,104 Alaska 0 52 0 0 0 Arizona 49 52 75 3,702 3,901 Arkansas 0 52 771 0 40,086 California 0 52 1,255 0 65,204 Colorado 0 52 244 0 12,684 Connecticut 0 52 2 0 104 Delaware 0 52 11 0 593 Florida 0 52 886 0 46,011 Georgia 0 52 808 0 41,982 Hawaii 29 52 48 1,386 2,477 Idaho 0 52 227 0 11,812 Illinois 0 104 553 0 57,506 Indiana 0 52 429 0 22,310*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5

‐ 614 Iowa 7 52 787 5,542 40,911 Kansas 0 104 514 0 53,452 Kentucky 0 52 396 0 20,556 Louisiana 0 52 282 0 14,664 Maine 0 52 24 0 1,232 Maryland 0 52 215 0 11,177 Massachusetts 0 52 17 0 877 Michigan 0 52 283 0 14,703 Minnesota 104 104 47 4,884 4,884 Mississippi 0 52 346 0 17,956 Missouri 0 52 704 0 36,595 Montana 0 52 0 0 0 Nebraska 0 52 745 0 38,692 Nevada 39 52 81 3,157 4,209 New Hampshire 0 52 1 0 52 New Jersey 0 52 75 0 3,894 New Mexico 0 52 155 0 8,073 New York 0 52 272 0 14,136 North Carolina 0 52 838 0 43,528 North Dakota 52 52 1,352 69,946 70,260 Ohio 82 52 504 41,169 41,169 Oklahoma 0 104 472 0 49,040 Oregon 0 52 220 0 11,425 Pennsylvania 17 52 244 4,229 12,687 Rhode Island 0 52 1 0 52 South Carolina 0 52 326 0 16,916 South Dakota 0 52 501 0 26,015 Tennessee 0 52 366 0 18,998 Texas 0 52 1,448 0 75,213 Utah 67 52 92 6,218 6,218 Vermont 0 52 0 0 0 Virginia 0 52 288 0 14,985 Washington 0 52 728 0 37,831 West Virginia 0 52 43 0 2,239 Wisconsin 40 104 65 2,640 6,789 Wyoming 0 52 130 0 6,778 Puerto Rico 0 52 524 0 27,201 Other Jurisdictions 0 52 0 0 0 Total, U.S. 18,591 123,904 1,068,180

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5

‐ 615 Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existi ng private fumigant applicators not included in the baseline regional costs (not certified) obtain in itial certification (see A ppendix A2). The cost of recertification under the proposal begins in the fourth year and would remain constant thereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଷ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 2.91 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 5.87

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Recert-01, Recertification of Private Fumigant Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 59 0 59 Alaska 0 0 0 Arizona 34 33 1 Arkansas 235 0 235 California 383 0 383 Colorado 74 0 74 Connecticut 1 0 1 Delaware 3 0 3 Florida 270 0 270 Georgia 247 0 247 Hawaii 19 12 6 Idaho 69 0 69*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5

‐ 616 Illinois 338 0 338 Indiana 131 0 131 Iowa 256 49 208 Kansas 314 0 314 Kentucky 121 0 121 Louisiana 86 0 86 Maine 7 0 7 Maryland 66 0 66 Massachusetts 5 0 5 Michigan 86 0 86 Minnesota 43 43 0 Mississippi 105 0 105 Missouri 215 0 215 Montana 0 0 0 Nebraska 227 0 227 Nevada 34 28 6 New Hampshire 0 0 0 New Jersey 23 0 23 New Mexico 47 0 47 New York 83 0 83 North Carolina 256 0 256 North Dakota 616 612 4 Ohio 362 362 0 Oklahoma 288 0 288 Oregon 67 0 67 Pennsylvania 87 37 50 Rhode Island 0 0 0 South Carolina 99 0 99 South Dakota 153 0 153 Tennessee 112 0 112 Texas 442 0 442 Utah 55 55 0 Vermont 0 0 0 Virginia 88 0 88 Washington 222 0 222 West Virginia 13 0 13 Wisconsin 48 23 24 Wyoming 40 0 40 Puerto Rico 160 0 160 Other Jurisdictions 0 0 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5

‐ 617 Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Recert-01, Recertification of Private Fumigant Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 6,688 1,253 5,436 U.S. (annualized value) 761 143 619 Per applicator incremental cost 0.033

State Costs of Administering Recertification Exam or Verifying Completion of Training for Application Method-Spec ific Categories

The options analyzed in this sec tion address the requirements for re certification of applicators in the application method-specific categories as they apply to the administ ration of recertification exam or verifying completion of requ ired training for recertification.

Private Applicator
Although there are currently no federal private applicator certifica tion categories based on application method, some states do require certification in one or more of the application method-specific categories among those considered in the potential requir ements. For private certification categories consider ed as potential requirements (aerial, chemigation, general fumigation, soil fumigation, and non-soil fumigation) , there are different jurisdictions that currently require each. Jurisdicti ons that do not require a particular category have zero baseline cost for certification or recertific ation for that category. Most of the jurisdictions that require a given category in the baseline al so require recertification. EPA considers these recertification requirements in compliance with the proposed requirements.
For private applicators, the jurisdictions that have one or more of the application method-specific categories require recertification by passing a written exam or by completing the required training. The proposed rule also requires recertification in thes e categories by passing a written exam or by completing the required training.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 618 EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that private applicators completed the required training. EPA assumes that it takes a state official one hour to conduct verification of the trai ning requirements for 50 private applicators. Therefore, whet her a jurisdiction recertifies by exam or training, its cost of administration is the same – one hour of a stat e official’s time for 50 private applicators.

5.2.2.18 Private Recert-01: Administer Exam or 3-hour Training for Private General Fumigation Category Recertification: Every 3 Years

Step 1 - Calculate Baseline Costs

Jurisdictions that Require Recertification in General Fumigation Category in the Baseline

In the baseline, no jurisdiction requires cer tification in general fumigation category.

Table: Private Recert-01; Step 1; Baseline Cost per Applicator to Proctor Private General Fumigation Category Recertification Exam; No Jurisdiction Requires General Fumigation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($)
No jurisdiction requires certification 39.44 0 0 0.00

Total 0.00

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Private Recert-01; Step 2; Cost per Applicator to Proctor Private Ge neral Fumigation Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category recertification

exam or verify training 39.44 1 0.007 0.26

Total 0.26*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 619 Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N = number of private applicators certif ied in general fumigation category.

Given the above: RC B = cost r,i, a B x N RC t=3 P = cost r,i, P x N

Values are presented in the table below.

Table: Private Recert-01; Step 3; Total Annual Baseline and Potential Requi rement Costs for Proctoring General Fumigation Category Recertification Exam for Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, P ($) N RC B ($) RC t=3 P ($) Alabama 0.00 0.26 215 0 57 Alaska 0.00 0.26 0 0 0 Arizona 0.00 0.26 82 0 22 Arkansas 0.00 0.26 854 0 224 California 0.00 0.26 1,383 0 364 Colorado 0.00 0.26 269 0 71 Connecticut 0.00 0.26 2 0 1 Delaware 0.00 0.26 12 0 3 Florida 0.00 0.26 966 0 254 Georgia 0.00 0.26 896 0 236 Hawaii 0.00 0.26 52 0 14 Idaho 0.00 0.26 252 0 66 Illinois 0.00 0.26 614 0 161 Indiana 0.00 0.26 476 0 125 Iowa 0.00 0.26 872 0 229 Kansas 0.00 0.26 569 0 150 Kentucky 0.00 0.26 438 0 115 Louisiana 0.00 0.26 312 0 82*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 620 Maine 0.00 0.26 26 0 7 Maryland 0.00 0.26 235 0 62 Massachusetts 0.00 0.26 19 0 5 Michigan 0.00 0.26 313 0 82 Minnesota 0.00 0.26 51 0 13 Mississippi 0.00 0.26 382 0 101 Missouri 0.00 0.26 781 0 205 Montana 0.00 0.26 0 0 0 Nebraska 0.00 0.26 825 0 217 Nevada 0.00 0.26 88 0 23 New Hampshire 0.00 0.26 1 0 0 New Jersey 0.00 0.26 82 0 22 New Mexico 0.00 0.26 170 0 45 New York 0.00 0.26 300 0 79 North Carolina 0.00 0.26 927 0 244 North Dakota 0.00 0.26 1,471 0 387 Ohio 0.00 0.26 559 0 147 Oklahoma 0.00 0.26 522 0 137 Oregon 0.00 0.26 242 0 64 Pennsylvania 0.00 0.26 266 0 70 Rhode Island 0.00 0.26 1 0 0 South Carolina 0.00 0.26 358 0 94 South Dakota 0.00 0.26 555 0 146 Tennessee 0.00 0.26 405 0 107 Texas 0.00 0.26 1,604 0 422 Utah 0.00 0.26 101 0 26 Vermont 0.00 0.26 0 0 0 Virginia 0.00 0.26 317 0 83 Washington 0.00 0.26 805 0 212 West Virginia 0.00 0.26 47 0 12 Wisconsin 0.00 0.26 72 0 19 Wyoming 0.00 0.26 145 0 38 Puerto Rico 0.00 0.26 581 0 153 Other 0.00 0.26 0 0 0 Total, U.S. 20,514 0 5,394

Step 4 - Calculate the PV of Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 621 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third year, all private appl icators with general fumigation certification must be recertified. EPA assumes that one -third of these applicators will recertify in each year. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-time general fumigation applic ators in the regions is assumed to be constant over time, existing general fumigation applicators in jurisdictions without a category will only need to obtain certif ication once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Recert-01; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 0.39 0.00 0.39 Alaska 0.00 0.00 0.00 Arizona 0.15 0.00 0.15 Arkansas 1.53 0.00 1.53 California 2.48 0.00 2.48 Colorado 0.48 0.00 0.48*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 622 Connecticut 0.00 0.00 0.00 Delaware 0.02 0.00 0.02 Florida 1.73 0.00 1.73 Georgia 1.61 0.00 1.61 Hawaii 0.09 0.00 0.09 Idaho 0.45 0.00 0.45 Illinois 1.10 0.00 1.10 Indiana 0.85 0.00 0.85 Iowa 1.56 0.00 1.56 Kansas 1.02 0.00 1.02 Kentucky 0.78 0.00 0.78 Louisiana 0.56 0.00 0.56 Maine 0.05 0.00 0.05 Maryland 0.42 0.00 0.42 Massachusetts 0.03 0.00 0.03 Michigan 0.56 0.00 0.56 Minnesota 0.09 0.00 0.09 Mississippi 0.69 0.00 0.69 Missouri 1.40 0.00 1.40 Montana 0.00 0.00 0.00 Nebraska 1.48 0.00 1.48 Nevada 0.16 0.00 0.16 New Hampshire 0.00 0.00 0.00 New Jersey 0.15 0.00 0.15 New Mexico 0.30 0.00 0.30 New York 0.54 0.00 0.54 North Carolina 1.66 0.00 1.66 North Dakota 2.64 0.00 2.64 Ohio 1.00 0.00 1.00 Oklahoma 0.94 0.00 0.94 Oregon 0.43 0.00 0.43 Pennsylvania 0.48 0.00 0.48 Rhode Island 0.00 0.00 0.00 South Carolina 0.64 0.00 0.64 South Dakota 0.99 0.00 0.99 Tennessee 0.73 0.00 0.73 Texas 2.87 0.00 2.87 Utah 0.18 0.00 0.18 Vermont 0.00 0.00 0.00*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 623 Virginia 0.57 0.00 0.57 Washington 1.44 0.00 1.44 West Virginia 0.08 0.00 0.08 Wisconsin 0.13 0.00 0.13 Wyoming 0.26 0.00 0.26 Puerto Rico 1.04 0.00 1.04 Other 0.00 0.00 0.00

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Private Recert-01; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 37 0 37 U.S. (annualized value) 4.2 0 4.2

5.2.2.19 Private Recert-02: General Fumigation Catego ry Recertification by Exam or 4 hour CEUs/training every three years
Step 2 - Calculate Costs per Existing Fumigant Applicator of Potential Requirement Recertification requirement:

 All private fumigant applicat ors take 4 category-specific CE Us; option to retake initial

 Period is 3 years ( freq i,t = 0.333)

Table: Private Recert-02; Fumigant Applic ation Recertification by 4 CEU; Step 2; Cost of Potential Requirement per Existing Fumigant Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Fumigation Recertification 51.96 4 0.333 69.28*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 624 Table: Private Recert-02; Fumigant Applic ation Recertification by Exam; Step 2; Cost of Potential Requirement per Existing Fumigant Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Fumigation Recertification 51.96 6 0.333 103.92

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing private fumigant applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing private fu migant applicator, presented in Step 2.

 The number of existing private fumigant applicators (N Xst Pvt Fum ) in each jurisdiction is obtained from the CPARD databa se or extrapolated to othe r states (see Chapter 3.3.3)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of private fumiga nt applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of private fumigant applicators under the potential requirement.

 EPA assumes that private appl icators do not engage in both soil and non-soil fumigation, given the differences in chemicals used and a pplication methods. To the extent that some applicators engage in both activities, this im plies that estimates of the baseline cost and the cost under the potential re quirement are biased upward. Th e greater bias would in the estimate of the cost under the potential requ irement because it in cludes all applicators whereas the baseline includes only the subset of applicators in jurisdictions with current fumigation categories. As a result, the esti mate of incremental cost is also biased upward.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis as would be required under this option, but distributed over different time frame. EPA acknowledges that jurisdictions will have to revise their regulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not change.

Given the above: RC B = cost r,i, a B x N Xst Pvt Fum RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Pvt Fum
Values are presented in the table below.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 625 Table: Private Recert-02; Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Recertification of Private Fumigant Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Pvt Fum RC B ($) RC P ($)
Alabama 0 69 194 0 13,472 Alaska 0 69 0 0 0 Arizona 49 69 75 3,702 5,202 Arkansas 0 69 771 0 53,448 California 0 69 1,255 0 86,938 Colorado 0 69 244 0 16,912 Connecticut 0 69 2 0 139 Delaware 0 69 11 0 791 Florida 0 69 886 0 61,348 Georgia 0 69 808 0 55,976 Hawaii 29 69 48 1,386 3,302 Idaho 0 69 227 0 15,749 Illinois 0 104 553 0 57,506 Indiana 0 69 429 0 29,747 Iowa 7 69 787 5,542 54,548 Kansas 0 104 514 0 53,452 Kentucky 0 69 396 0 27,408 Louisiana 0 69 282 0 19,552 Maine 0 69 24 0 1,643 Maryland 0 69 215 0 14,903 Massachusetts 0 69 17 0 1,169 Michigan 0 69 283 0 19,603 Minnesota 104 104 47 4,884 4,884 Mississippi 0 69 346 0 23,941 Missouri 0 69 704 0 48,793 Montana 0 69 0 0 0 Nebraska 0 69 745 0 51,589 Nevada 39 69 81 3,157 5,612 New Hampshire 0 69 1 0 69 New Jersey 0 69 75 0 5,192 New Mexico 0 69 155 0 10,764 New York 0 69 272 0 18,848 North Carolina 0 69 838 0 58,038 North Dakota 52 69 1,352 69,946 93,680 Ohio 82 69 504 41,169 41,169 Oklahoma 0 104 472 0 49,040 Oregon 0 69 220 0 15,233 Pennsylvania 17 69 244 4,229 16,916 Rhode Island 0 69 1 0 69*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 626 South Carolina 0 69 326 0 22,554 South Dakota 0 69 501 0 34,687 Tennessee 0 69 366 0 25,331 Texas 0 69 1,448 0 100,284 Utah 67 69 92 6,218 6,386 Vermont 0 69 0 0 0 Virginia 0 69 288 0 19,981 Washington 0 69 728 0 50,441 West Virginia 0 69 43 0 2,985 Wisconsin 40 104 65 2,640 6,789 Wyoming 0 69 130 0 9,037 Puerto Rico 0 69 524 0 36,268 Other Jurisdictions 0 69 0 0 0 Total, U.S. 18,591 123,904 1,351,389

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existi ng private fumigant applicators not included in the baseline regional costs (not certified) obtain in itial certificati on (see Appendix A2). The cost of recertification under the proposal begins in the fourth year and would remain constant thereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଷ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 2.91 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 5.87

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 627  PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Recert-02, Recertification of Private Fumigant Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 79 0 79 Alaska 0 0 0 Arizona 41 33 9 Arkansas 314 0 314 California 511 0 511 Colorado 99 0 99 Connecticut 1 0 1 Delaware 5 0 5 Florida 360 0 360 Georgia 329 0 329 Hawaii 23 12 11 Idaho 92 0 92 Illinois 338 0 338 Indiana 175 0 175 Iowa 336 49 288 Kansas 314 0 314 Kentucky 161 0 161 Louisiana 115 0 115 Maine 10 0 10 Maryland 88 0 88 Massachusetts 7 0 7 Michigan 115 0 115 Minnesota 43 43 0 Mississippi 141 0 141 Missouri 287 0 287 Montana 0 0 0 Nebraska 303 0 303 Nevada 42 28 14 New Hampshire 0 0 0 New Jersey 30 0 30 New Mexico 63 0 63 New York 111 0 111 North Carolina 341 0 341 North Dakota 753 612 141 Ohio 362 362 0*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 628 Oklahoma 288 0 288 Oregon 89 0 89 Pennsylvania 112 37 75 Rhode Island 0 0 0 South Carolina 132 0 132 South Dakota 204 0 204 Tennessee 149 0 149 Texas 589 0 589 Utah 56 55 1 Vermont 0 0 0 Virginia 117 0 117 Washington 296 0 296 West Virginia 18 0 18 Wisconsin 48 23 24 Wyoming 53 0 53 Puerto Rico 213 0 213 Other Jurisdictions 0 0 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Recert-02, Recertification of Private Fumigant Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 8,352 1,253 7,099 U.S. (annualized value) 951 143 808 Per applicator incremental cost 0.043

State Costs of Administering Recertification Exam or Verifying Completion of Training for Application Method-Spec ific Categories*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 629 5.2.2.20 Private Recert-02: Administer Exam or 4-hour Training for Private General Fumigation Category Recertification: Every 3 Years

The costs are identical to Private Recert-01 b ecause proctoring a group of 50 examinees takes one hour of Jr technician’s time whether it is a 3-hour or 4-hour exam. Similarly, it takes a Jr technician one hour to verify completion of trai ning for 50 applicators wh ether it is a 3-hour or 4-hour training.

5.2.2.21 Private Recert-04: General Fumigation Catego ry Recertification by Exam or 3 hour CEUs/training every five years
Step 2 - Calculate Costs per Existing Fumigant Applicator of Potential Requirement Recertification requirement:

 All private fumigant applicat ors take 3 category-specific CE Us; option to retake initial

 Period is 5 years ( freq i,t = 0.20)

Table: Private Recert-04; Fumigant Applic ation Recertification by 3 CEU; Step 2; Cost of Potential Requirement per Existing Fumigant Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Fumigation Recertification 51.96 3 0.20 31.18

Table: Private Recert-04; Fumigant Applic ation Recertification by Exam; Step 2; Cost of Potential Requirement per Existing Fumigant Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Fumigation Recertification 51.96 6 0.20 62.35

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing private fumigant applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing private fu migant applicator, presented in Step 2.

 The number of existing private fumigant applicators (N Xst Pvt Fum ) in each jurisdiction is obtained from the CPARD databa se or extrapolated to othe r states (see Chapter 3.3.3)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of private fumiga nt applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of private fumigant applicators under the potential requirement.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 630  EPA assumes that private appl icators do not engage in both soil and non-soil fumigation, given the differences in chemicals used and a pplication methods. To the extent that some applicators engage in both activities, this im plies that estimates of the baseline cost and the cost under the potential re quirement are biased upward. Th e greater bias would in the estimate of the cost under the potential requ irement because it in cludes all applicators whereas the baseline includes only the subset of applicators in jurisdictions with current fumigation categories. As a result, the esti mate of incremental cost is also biased upward.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis as would be required under this option, but distributed over different time frame. EPA acknowledges that jurisdictions will have to revise their regulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not change.

Given the above: RC B = cost r,i, a B x N Xst Pvt Fum RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Pvt Fum
Values are presented in the table below.

Table: Private Recert-04; Applicators; Step 3; Total Annual Regional Baseline and Potent ial Requirement Costs for Recertification of Private Fumigant Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Pvt Fum RC B ($) RC P ($)
Alabama 0 31 194 0 6,063 Alaska 0 31 0 0 0 Arizona 49 31 75 3,702 3,702 Arkansas 0 31 771 0 24,052 California 0 31 1,255 0 39,122 Colorado 0 31 244 0 7,611 Connecticut 0 31 2 0 62 Delaware 0 31 11 0 356 Florida 0 31 886 0 27,607 Georgia 0 31 808 0 25,189 Hawaii 29 31 48 1,386 1,486 Idaho 0 31 227 0 7,087 Illinois 0 104 553 0 34,503 Indiana 0 31 429 0 13,386 Iowa 7 31 787 5,542 24,547 Kansas 0 104 514 0 32,071 Kentucky 0 31 396 0 12,334*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 631 Louisiana 0 31 282 0 8,798 Maine 0 31 24 0 739 Maryland 0 31 215 0 6,706 Massachusetts 0 31 17 0 526 Michigan 0 31 283 0 8,822 Minnesota 104 104 47 4,884 4,884 Mississippi 0 31 346 0 10,774 Missouri 0 31 704 0 21,957 Montana 0 31 0 0 0 Nebraska 0 31 745 0 23,215 Nevada 39 31 81 3,157 3,157 New Hampshire 0 31 1 0 31 New Jersey 0 31 75 0 2,336 New Mexico 0 31 155 0 4,844 New York 0 31 272 0 8,482 North Carolina 0 31 838 0 26,117 North Dakota 52 31 1,352 69,946 69,649 Ohio 82 31 504 41,169 41,169 Oklahoma 0 104 472 0 29,424 Oregon 0 31 220 0 6,855 Pennsylvania 17 31 244 4,229 7,612 Rhode Island 0 31 1 0 31 South Carolina 0 31 326 0 10,149 South Dakota 0 31 501 0 15,609 Tennessee 0 31 366 0 11,399 Texas 0 31 1,448 0 45,128 Utah 67 31 92 6,218 6,218 Vermont 0 31 0 0 0 Virginia 0 31 288 0 8,991 Washington 0 31 728 0 22,698 West Virginia 0 31 43 0 1,343 Wisconsin 40 104 65 2,640 4,074 Wyoming 0 31 130 0 4,067 Puerto Rico 0 31 524 0 16,321 Other Jurisdictions 0 31 0 0 0 Total, U.S. 18,591 123,904 691,301

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5

‐ 632 ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existi ng private fumigant applicators not included in the baseline regional costs (not certified) obtain in itial certificati on (see Appendix A2). The cost of recertification under the proposal begins in the fourth year and would remain constant thereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଷ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 2.91 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 5.87

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B

Table: Private Recert-04, Recertification of Private Fumigant Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 36 0 36 Alaska 0 0 0 Arizona 33 33 0 Arkansas 141 0 141 California 230 0 230 Colorado 45 0 45 Connecticut 0 0 0 Delaware 2 0 2 Florida 162 0 162 Georgia 148 0 148 Hawaii 13 12 1 Idaho 42 0 42 Illinois 203 0 203 Indiana 79 0 79 Iowa 160 49 112*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 633 Kansas 188 0 188 Kentucky 72 0 72 Louisiana 52 0 52 Maine 4 0 4 Maryland 39 0 39 Massachusetts 3 0 3 Michigan 52 0 52 Minnesota 43 43 0 Mississippi 63 0 63 Missouri 129 0 129 Montana 0 0 0 Nebraska 136 0 136 Nevada 28 28 0 New Hampshire 0 0 0 New Jersey 14 0 14 New Mexico 28 0 28 New York 50 0 50 North Carolina 153 0 153 North Dakota 612 612 0 Ohio 362 362 0 Oklahoma 173 0 173 Oregon 40 0 40 Pennsylvania 57 37 20 Rhode Island 0 0 0 South Carolina 60 0 60 South Dakota 92 0 92 Tennessee 67 0 67 Texas 265 0 265 Utah 55 55 0 Vermont 0 0 0 Virginia 53 0 53 Washington 133 0 133 West Virginia 8 0 8 Wisconsin 32 23 8 Wyoming 24 0 24 Puerto Rico 96 0 96 Other Jurisdictions 0 0 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 634  NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Recert-04, Recertification of Private Fumigant Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 4,475 1,253 3,222 U.S. (annualized value) 509 143 367 Per applicator incremental cost 0.020

State Costs of Administering Recertification Exam or Verifying Completion of Training for Application Method-Spec ific Categories

The options analyzed in this sec tion address the requirements for re certification of applicators in the application method-specific categories as they apply to the administ ration of recertification exam or verifying completion of requ ired training for recertification.

Private Applicator
Although there are currently no federal private applicator certifica tion categories based on application method, some states do require certification in one or more of the application method-specific categories among those considered in the potential requir ements. For private certification categories consider ed as potential requirements (aerial, chemigation, general fumigation, soil fumigation, and non-soil fumigation) , there are different jurisdictions that currently require each. Jurisdicti ons that do not require a particular category have zero baseline cost for certification or recertific ation for that category. Most of the jurisdictions that require a given category in the baseline al so require recertification. EPA considers these recertification requirements in compliance with the proposed requirements.
For private applicators, the jurisdictions that have one or more of the application method-specific categories require recertification by passing a written exam or by completing the required training. The proposed rule also requires recertification in thes e categories by passing a written exam or by completing the required training.

EPA assumes that recertification by exam takes one hour of a state official’s time to proctor a group of 50 examinees in a room. For recertif ication by training, EPA assumes that a state official verifies that private applicators completed the required training. EPA assumes that it*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 635 takes a state official one hour to conduct verification of the trai ning requirements for 50 private applicators. Therefore, whet her a jurisdiction recertifies by exam or training, its cost of administration is the same – one hour of a stat e official’s time for 50 private applicators.

5.2.2.22 Private Recert-04: Administer Exam or 3-hour Training for Private General Fumigation Category Recertification: Every 5 Years
Step 1 - Calculate Baseline Costs

Jurisdictions that Require Recertification in General Fumigation Category in the Baseline

In the baseline, no jurisdiction requires cer tification in general fumigation category.

Table: Private Recert-04; Step 1; Baseline Cost per Applicator to Proctor Private General Fumigation Category Recertification Exam; No Jurisdiction Requires General Fumigation Category Certification

Action Wage ($/hour) Time (hours) Frequency Cost ($)
No jurisdiction requires certification 39.44 0 0 0.00

Total 0.00

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 The opportunity cost of the responsible st aff (Jr. technician) is $39.44 per hour (BLS, 2013c); see Chapter 3.3.5

Table: Private Recert-04; Step 2; Cost per Applicator to Proctor Private Ge neral Fumigation Category Certification Exam;

Action Wage ($/hour) Time (hours) Frequency Cost ($)
Proctor category recertification

exam or verify training 39.44 1 0.004 0.16

Total 0.16

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 636  The baseline cost per jurisdiction for proctoring the category exam ( cost r,i, a B ) is presented in Step 1. To avoid the appearance of cost -savings, the baseline cost in jurisdictions whose requirements exceed the option are constr ained to equal the cost of the option.

 The cost per jurisdiction of pr octoring the category exam ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost of proctoring the

exam

 RC P is the jurisdictional level cost of the potential requirement

 N = number of private applicators certif ied in general fumigation category.

Given the above: RC B = cost r,i, a B x N RC t=3 P = cost r,i, P x N

Values are presented in the table below.

Table: Private Recert-04; Step 3; Total Annual Baseline and Potential Requi rement Costs for Proctoring General Fumigation Category Recertification Exam for Private Applicators

Jurisdiction cost r,i, a B ($) cost r,i, P ($) N RC B ($) RC t=3 P ($) Alabama 0.00 0.16 215 0 34 Alaska 0.00 0.16 0 0 0 Arizona 0.00 0.16 82 0 13 Arkansas 0.00 0.16 854 0 135 California 0.00 0.16 1,383 0 218 Colorado 0.00 0.16 269 0 42 Connecticut 0.00 0.16 2 0 0 Delaware 0.00 0.16 12 0 2 Florida 0.00 0.16 966 0 152 Georgia 0.00 0.16 896 0 141 Hawaii 0.00 0.16 52 0 8 Idaho 0.00 0.16 252 0 40 Illinois 0.00 0.16 614 0 97 Indiana 0.00 0.16 476 0 75 Iowa 0.00 0.16 872 0 138 Kansas 0.00 0.16 569 0 90 Kentucky 0.00 0.16 438 0 69 Louisiana 0.00 0.16 312 0 49 Maine 0.00 0.16 26 0 4 Maryland 0.00 0.16 235 0 37 Massachusetts 0.00 0.16 19 0 3 Michigan 0.00 0.16 313 0 49*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 637 Minnesota 0.00 0.16 51 0 8 Mississippi 0.00 0.16 382 0 60 Missouri 0.00 0.16 781 0 123 Montana 0.00 0.16 0 0 0 Nebraska 0.00 0.16 825 0 130 Nevada 0.00 0.16 88 0 14 New Hampshire 0.00 0.16 1 0 0 New Jersey 0.00 0.16 82 0 13 New Mexico 0.00 0.16 170 0 27 New York 0.00 0.16 300 0 47 North Carolina 0.00 0.16 927 0 146 North Dakota 0.00 0.16 1,471 0 232 Ohio 0.00 0.16 559 0 88 Oklahoma 0.00 0.16 522 0 82 Oregon 0.00 0.16 242 0 38 Pennsylvania 0.00 0.16 266 0 42 Rhode Island 0.00 0.16 1 0 0 South Carolina 0.00 0.16 358 0 56 South Dakota 0.00 0.16 555 0 88 Tennessee 0.00 0.16 405 0 64 Texas 0.00 0.16 1,604 0 253 Utah 0.00 0.16 101 0 16 Vermont 0.00 0.16 0 0 0 Virginia 0.00 0.16 317 0 50 Washington 0.00 0.16 805 0 127 West Virginia 0.00 0.16 47 0 7 Wisconsin 0.00 0.16 72 0 11 Wyoming 0.00 0.16 145 0 23 Puerto Rico 0.00 0.16 581 0 92 Other 0.00 0.16 0 0 0 Total, U.S. 20,514 0 3,236

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 638 ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. Beginning in the third year, all private appl icators with general fumigation certification must be recertified. EPA assumes that one -third of these applicators will recertify in each year. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଷ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଷ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 1.97 ∙ ௜,௥ ௉ ௧ୀଷ ∙ 6.82

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, while the number of first-time general fumigation applic ators in the regions is assumed to be constant over time, existing general fumigation applicators in jurisdictions without a category will only need to obtain certif ication once, when the rule is implemented. EPA assumes implementation will occur in the third year of the time horizon.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Private Recert-04; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 0.23 0.00 0.23 Alaska 0.00 0.00 0.00 Arizona 0.09 0.00 0.09 Arkansas 0.92 0.00 0.92 California 1.49 0.00 1.49 Colorado 0.29 0.00 0.29 Connecticut 0.00 0.00 0.00 Delaware 0.01 0.00 0.01 Florida 1.04 0.00 1.04 Georgia 0.96 0.00 0.96*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 639 Hawaii 0.06 0.00 0.06 Idaho 0.27 0.00 0.27 Illinois 0.66 0.00 0.66 Indiana 0.51 0.00 0.51 Iowa 0.94 0.00 0.94 Kansas 0.61 0.00 0.61 Kentucky 0.47 0.00 0.47 Louisiana 0.34 0.00 0.34 Maine 0.03 0.00 0.03 Maryland 0.25 0.00 0.25 Massachusetts 0.02 0.00 0.02 Michigan 0.34 0.00 0.34 Minnesota 0.05 0.00 0.05 Mississippi 0.41 0.00 0.41 Missouri 0.84 0.00 0.84 Montana 0.00 0.00 0.00 Nebraska 0.89 0.00 0.89 Nevada 0.09 0.00 0.09 New Hampshire 0.00 0.00 0.00 New Jersey 0.09 0.00 0.09 New Mexico 0.18 0.00 0.18 New York 0.32 0.00 0.32 North Carolina 1.00 0.00 1.00 North Dakota 1.58 0.00 1.58 Ohio 0.60 0.00 0.60 Oklahoma 0.56 0.00 0.56 Oregon 0.26 0.00 0.26 Pennsylvania 0.29 0.00 0.29 Rhode Island 0.00 0.00 0.00 South Carolina 0.38 0.00 0.38 South Dakota 0.60 0.00 0.60 Tennessee 0.44 0.00 0.44 Texas 1.72 0.00 1.72 Utah 0.11 0.00 0.11 Vermont 0.00 0.00 0.00 Virginia 0.34 0.00 0.34 Washington 0.87 0.00 0.87 West Virginia 0.05 0.00 0.05 Wisconsin 0.08 0.00 0.08*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 640 Wyoming 0.16 0.00 0.16 Puerto Rico 0.62 0.00 0.62 Other 0.00 0.00 0.00

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Private Recert-04; Jurisdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 22 0 22 U.S. (annualized value) 2.5 0 2.5

5.2.2.23 Private Recert-05: General Fumigation Catego ry Recertification by Exam or 4 hour CEUs/training every five years

Step 2 - Calculate Costs per Existing Fumigant Applicator of Potential Requirement Recertification requirement:

 All private fumigant applicat ors take 4 category-specific CE Us; option to retake initial

 Period is 5 years ( freq i,t = 0.20)

Table: Private Recert-05; Fumigant Applic ation Recertification by 4 CEU; Step 2; Cost of Potential Requirement per Existing Fumigant Applicator – U.S.

Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Fumigation Recertification 51.96 4 0.20 41.57

Table: Private Recert-05; Fumigant Applic ation Recertification by Exam; Step 2; Cost of Potential Requirement per Existing Fumigant Applicator – U.S.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 641 Action Wage ($/hour) Time (hours) Frequency (per year) Cost ($) Fumigation Recertification 51.96 6 0.20 62.35

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) regions – 50 states, Puerto Rico, and Other Jurisdictions, which includes all the territo ries and tribes except Puerto Rico.

 The baseline cost per applicator ( cost r,i, a B ) is the baseline cost per existing private fumigant applicator, presented in Step 1.

 The cost per applicator of the potential requirement ( cost r,i, a P ) is the cost under the potential requirement per existing private fu migant applicator, presented in Step 2.

 The number of existing private fumigant applicators (N Xst Pvt Fum ) in each jurisdiction is obtained from the CPARD databa se or extrapolated to othe r states (see Chapter 3.3.3)

 The baseline regional ju risdictional cost (RC B ) is the total annual jurisdictional cost for recertification of private fumiga nt applicators in the region.

 The jurisdictional cost of the potential requirement (RC P ) is the total annual jurisdictional cost for recertification of private fumigant applicators under the potential requirement.

 EPA assumes that private appl icators do not engage in both soil and non-soil fumigation, given the differences in chemicals used and a pplication methods. To the extent that some applicators engage in both activities, this im plies that estimates of the baseline cost and the cost under the potential re quirement are biased upward. Th e greater bias would in the estimate of the cost under the potential requ irement because it in cludes all applicators whereas the baseline includes only the subset of applicators in jurisdictions with current fumigation categories. As a result, the esti mate of incremental cost is also biased upward.

 To avoid the appearance of cost-savings, the jurisdictional cost of the potential requirement (RC P ) in jurisdictions whose requirement s meet or exceed the option are set equal to the baseline regional jurisdictional cost (RC B ). Note that many states require as many or more CEUs on an annual basis as would be required under this option, but distributed over different time frame. EPA acknowledges that jurisdictions will have to revise their regulations to accommodate the potential changes, but that the number of CEUs required of an applicator may not change.

Given the above: RC B = cost r,i, a B x N Xst Pvt Fum RC P = max( cost r,i, a B

, cost r,i, a P ) x N Xst Pvt Fum
Values are presented in the table below.

Table: Private Recert-05; Applicators; Step 3;*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 642 Total Annual Regional Baseline and Potent ial Requirement Costs for Recertification of Private Fumigant Applicators

Jurisdiction cost r,i, a B ($) cost r,i, a P ($) N Xst Pvt Fum RC B ($) RC P ($)
Alabama 0 42 194 0 8,083 Alaska 0 42 0 0 0 Arizona 49 42 75 3,702 3,702 Arkansas 0 42 771 0 32,069 California 0 42 1,255 0 52,163 Colorado 0 42 244 0 10,147 Connecticut 0 42 2 0 83 Delaware 0 42 11 0 474 Florida 0 42 886 0 36,809 Georgia 0 42 808 0 33,586 Hawaii 29 42 48 1,386 1,981 Idaho 0 42 227 0 9,450 Illinois 0 104 553 0 34,503 Indiana 0 42 429 0 17,848 Iowa 7 42 787 5,542 32,729 Kansas 0 104 514 0 32,071 Kentucky 0 42 396 0 16,445 Louisiana 0 42 282 0 11,731 Maine 0 42 24 0 986 Maryland 0 42 215 0 8,942 Massachusetts 0 42 17 0 701 Michigan 0 42 283 0 11,762 Minnesota 104 104 47 4,884 4,884 Mississippi 0 42 346 0 14,365 Missouri 0 42 704 0 29,276 Montana 0 42 0 0 0 Nebraska 0 42 745 0 30,954 Nevada 39 42 81 3,157 3,367 New Hampshire 0 42 1 0 42 New Jersey 0 42 75 0 3,115 New Mexico 0 42 155 0 6,458 New York 0 42 272 0 11,309 North Carolina 0 42 838 0 34,823 North Dakota 52 42 1,352 69,946 69,649 Ohio 82 42 504 41,169 41,169 Oklahoma 0 104 472 0 29,424 Oregon 0 42 220 0 9,140 Pennsylvania 17 42 244 4,229 10,149 Rhode Island 0 42 1 0 42 South Carolina 0 42 326 0 13,533 South Dakota 0 42 501 0 20,812*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 643 Tennessee 0 42 366 0 15,198 Texas 0 42 1,448 0 60,170 Utah 67 42 92 6,218 6,218 Vermont 0 42 0 0 0 Virginia 0 42 288 0 11,988 Washington 0 42 728 0 30,264 West Virginia 0 42 43 0 1,791 Wisconsin 40 104 65 2,640 4,074 Wyoming 0 42 130 0 5,422 Puerto Rico 0 42 524 0 21,761 Other Jurisdictions 0 42 0 0 0 Total, U.S. 18,591 123,904 845,662

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. The present value (PV) of the baselin e cost over 10 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 8.79

EPA assumes that it would take two years for st ates to revise regula tions in line with the proposed requirements. In the third year, existi ng private fumigant applicators not included in the baseline regional costs (not certified) obtain in itial certificati on (see Appendix A2). The cost of recertification under the proposal begins in the fourth year and would remain constant thereafter. The PV of costs under the proposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଷ

௧ୀଵ ܥܴ ൅ ௜,௥ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଵ଴

௧ୀସ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ܥܴ ൅ 2.91 ∙ ௜,௥ ௉ ௧ୀଵ ∙ 5.87

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 PV P = Present Value of the Potential requirement

 PV B = Present Value of the Baseline

 PV IC = Present Value of the Incremental Cost

 PV IC = PV P - PV B*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 644 Table: Private Recert-05, Recertification of Private Fumigant Applicators; Steps 4 & 5 Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV P ($1000) PV B ($1000) PV IC ($1000) Alabama 47 0 47 Alaska 0 0 0 Arizona 33 33 0 Arkansas 188 0 188 California 306 0 306 Colorado 60 0 60 Connecticut 0 0 0 Delaware 3 0 3 Florida 216 0 216 Georgia 197 0 197 Hawaii 16 12 3 Idaho 55 0 55 Illinois 203 0 203 Indiana 105 0 105 Iowa 208 49 160 Kansas 188 0 188 Kentucky 97 0 97 Louisiana 69 0 69 Maine 6 0 6 Maryland 53 0 53 Massachusetts 4 0 4 Michigan 69 0 69 Minnesota 43 43 0 Mississippi 84 0 84 Missouri 172 0 172 Montana 0 0 0 Nebraska 182 0 182 Nevada 29 28 1 New Hampshire 0 0 0 New Jersey 18 0 18 New Mexico 38 0 38 New York 66 0 66 North Carolina 205 0 205 North Dakota 612 612 0 Ohio 362 362 0 Oklahoma 173 0 173 Oregon 54 0 54*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 645 Pennsylvania 72 37 35 Rhode Island 0 0 0 South Carolina 79 0 79 South Dakota 122 0 122 Tennessee 89 0 89 Texas 353 0 353 Utah 55 55 0 Vermont 0 0 0 Virginia 70 0 70 Washington 178 0 178 West Virginia 11 0 11 Wisconsin 32 23 8 Wyoming 32 0 32 Puerto Rico 128 0 128 Other Jurisdictions 0 0 0

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 Per applicator incremental cost = NIC (U.S., annualized value) ÷ (N 1st Pvt )

 3% discount rate used for PV and annualized value

Table: Private Recert-05, Recertification of Private Fumigant Applicators; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 5,382 1,253 4,129 U.S. (annualized value) 613 143 470 Per applicator incremental cost 0.025

State Costs of Administering Recertification Exam or Verifying Completion of Training for Application Method-Spec ific Categories*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 646 5.2.2.24 Private Recert-05: Administer Exam or 4-hour Training for Private General Fumigation Category Recertification: Every 5 Years

The costs are identical to Private Recert-04 b ecause proctoring a group of 50 examinees takes one hour of Jr technician’s time whether it is a 3-hour or 4-hour exam. Similarly, it takes a Jr technician one hour to verify completion of trai ning for 50 applicators wh ether it is a 3-hour or 4-hour training.

Soil and Non-Soil Fumigation Applications

5.2.2.25 Private Recert-01: Soil and Non-Soil Fumig ation Category Recertifications by Exam or 3 hour CEUs/training every three years

Cost estimates are identical to estimates for re certification in the Gene ral Fumigation category, exam or 3 hours CEU every three years.

Data from CPARD (2014) provide the number of certific ations issued in different fumigation categories and EPA used that data to estimate th e number of certifications that would be issued in jurisdictions that do not currently require cert ification in fumigant ap plications. Whereas the cost estimates for recertificati on in a general fumigation category may be biased upward to the extent that an individual a pplicator might conduct both soil an d non-soil fumigations with one certification, the estimated costs are unbiased for this option which requires separate certifications for the two categories. However, th e estimated cost per applicator may be biased downward since a single applicator ma y want to obtain two certifications.

5.2.2.26 Private Recert-01: Administer So il and Non-Soil Fumigation Category Recertifications by Exam or 3 ho ur CEUs/training every three years
State costs of administering recer tification exam or training are also identical to estimates for the corresponding General Fumigation category.

5.2.2.27 Private Recert-02: Soil and Non-Soil Fumig ation Category Recertifications by Exam or 4 hour CEUs/training every three years

Cost estimates are identical to estimates for re certification in the Gene ral Fumigation category, exam or 4 hours CEU every three years.

Data from CPARD (2014) provide the number of certific ations issued in different fumigation categories and EPA used that data to estimate th e number of certifications that would be issued in jurisdictions that do not currently require cert ification in fumigant ap plications. Whereas the cost estimates for recertificati on in a general fumigation category may be biased upward to the extent that an individual a pplicator might conduct both soil an d non-soil fumigations with one certification, the estimated costs are unbiased for this option which requires separate*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 647 certifications for the two categories. However, th e estimated cost per applicator may be biased downward since a single applicator ma y want to obtain two certifications.

5.2.2.28 Private Recert-02: Administer So il and Non-Soil Fumigation Category Recertifications by Exam or 4 ho ur CEUs/training every three years
State costs of administering recer tification exam or training are also identical to estimates for the corresponding General Fumigation category.

5.2.2.29 Private Recert-04: Soil and Non-Soil Fumig ation Category Recertifications by Exam or 3 hour CEUs/training every five years

Cost estimates are identical to estimates for re certification in the Gene ral Fumigation category, exam or 3 hours CEU every five years.

Data from CPARD (2014) provide the number of certific ations issued in different fumigation categories and EPA used that data to estimate th e number of certifications that would be issued in jurisdictions that do not currently require cert ification in fumigant ap plications. Whereas the cost estimates for recertificati on in a general fumigation category may be biased upward to the extent that an individual a pplicator might conduct both soil an d non-soil fumigations with one certification, the estimated costs are unbiased for this option which requires separate certifications for the two categories. However, th e estimated cost per applicator may be biased downward since a single applicator ma y want to obtain two certifications.

5.2.2.30 Private Recert-04: Administer So il and Non-Soil Fumigation Category Recertifications by Exam or 3 ho ur CEUs/training every five years
State costs of administering recer tification exam or training are also identical to estimates for the corresponding General Fumigation category.

5.2.2.31 Private Recert-05: Soil and Non-Soil Fumig ation Category Recertifications by Exam or 4 hour CEUs/training every five years

Cost estimates are identical to estimates for re certification in the Gene ral Fumigation category, exam or 4 hours CEU every five years.

Data from CPARD (2014) provide the number of certific ations issued in different fumigation categories and EPA used that data to estimate th e number of certifications that would be issued in jurisdictions that do not currently require cert ification in fumigant ap plications. Whereas the cost estimates for recertificati on in a general fumigation category may be biased upward to the extent that an individual a pplicator might conduct both soil an d non-soil fumigations with one certification, the estimated costs are unbiased for this option which requires separate*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

5

‐ 648 certifications for the two categories. However, th e estimated cost per applicator may be biased downward since a single applicator ma y want to obtain two certifications.

5.2.2.32 Private Recert-05: Administer So il and Non-Soil Fumigation Category Recertifications by Exam or 4 ho ur CEUs/training every five years
State costs of administering recer tification exam or training are also identical to estimates for the corresponding General Fumigation category.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

6

‐ 649 

## 6 Requirements for General Administration

There are several proposed new requirements th at are administrative in nature, which would include recordkeeping requirements for indus try, and requirements for state and federal governments to implement the changes in the rule.



### 6.1 Dealer Recordkeeping The Agency is proposing new recordkeeping re quirements for dealers of restricted use pesticides. Under the proposal, dealers selling RUPs to both pr ivate and commercial applicators would be required to keep r ecords of RUP sales, includi ng information on what RUP was purchased and the date, the iden tity of the purchaser, as well as information verifying the applicator is certified.

6.1.1.1 Admin-01: Dealers Maintain Records of Restricted Use Pesticide Sales
Currently, pesticide dealers alrea dy keep records of RUP sales, a nd all other information that is required by the proposal, and therefore, they are in compliance with Admin-01, thus zero incremental cost.



### 6.2 Administration Costs for Juri sdiction (Admin-02 and -03)

The EPA proposal Admin-02 would re quire all jurisdictions to rewr ite their laws and regulations, and to update plans as necessary to meet or exceed the potential Federal requirements. EPA assumes that all jurisdictions woul d need to revise their laws and plans. EPA estimates a total cost of $119 thousand to rewrite jurisdiction re gulations. Since the potential regulatory requirement would allow jurisdictions two years to revise their laws, regu lations, and plans, EPA assumes that jurisdictions would expend one-half of the cost in each of the two years. Another EPA proposal, Admin-03, would require ju risdictions to submit the revised plans to EPA. EPA estimates a total incremental co st at $4 thousand for this requirement.

Estimation of costs for these two proposals are presented below.

6.2.1.1 Admin-02. Revise Jurisdiction Regulations
Step 1 - Calculate Baseline Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 650 Table: Admin-02; Step 1; Base line Cost per Jurisdiction

Action Wage ($/hour) Time (hours) Frequency Cost ($) 0 Total 0

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 EPA assumes that all jurisdictions would need to revise their laws and plans.

 The opportunity costs of the re sponsible staff are shown in the table below (BLS, 2013c); see Chapter 3.3.5

Table: Admin-02; Step 2; Cost per Jurisdiction to Revise Regulations and Certification Plans

Action Wage ($/hour) Time (hours) Frequency Cost ($) Sr. Technician 57.69 100 0.5 2,884.50 Jr. Technician 39.44 300 0.5 5,916.00 Clerical Staff 27.21 100 0.5 1,360.50 Total 10,161.00

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territ ories and tribes except Puerto Rico.

 The baseline cost per jurisdiction ( cost r,i, a B ) is presented in Step 1.

 The cost per jurisdiction of revising regulations ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost, which is the same

as cost r,i, a B in Step 1 because there is one jurisdiction in a region.

 RC P is the jurisdictional level cost of the potential requirement, which is the same as
cost r,i, a P in Step 2 because there is one jurisdiction in a region

 N = Number of jurisdictions , which is always 1.

Given the above: RC B = cost r,i, a B x 1 RC t=3 P = cost r,i, P x 1

Values are presented in the table below.*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 651 Table: Admin-02; Step 3; Total Annual Baseline and Potential Require ment Costs for Revising Regulations and Certification Plans

Jurisdiction N Jurisdiction RC B ($) RC t=3 P ($) Alabama 1 0 10,161 Alaska 1 0 10,161 Arizona 1 0 10,161 Arkansas 1 0 10,161 California 1 0 10,161 Colorado 1 0 10,161 Connecticut 1 0 10,161 Delaware 1 0 10,161 Florida 1 0 10,161 Georgia 1 0 10,161 Hawaii 1 0 10,161 Idaho 1 0 10,161 Illinois 1 0 10,161 Indiana 1 0 10,161 Iowa 1 0 10,161 Kansas 1 0 10,161 Kentucky 1 0 10,161 Louisiana 1 0 10,161 Maine 1 0 10,161 Maryland 1 0 10,161 Massachusetts 1 0 10,161 Michigan 1 0 10,161 Minnesota 1 0 10,161 Mississippi 1 0 10,161 Missouri 1 0 10,161 Montana 1 0 10,161 Nebraska 1 0 10,161 Nevada 1 0 10,161 New Hampshire 1 0 10,161 New Jersey 1 0 10,161 New Mexico 1 0 10,161 New York 1 0 10,161 North Carolina 1 0 10,161 North Dakota 1 0 10,161 Ohio 1 0 10,161*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 652 Oklahoma 1 0 10,161 Oregon 1 0 10,161 Pennsylvania 1 0 10,161 Rhode Island 1 0 10,161 South Carolina 1 0 10,161 South Dakota 1 0 10,161 Tennessee 1 0 10,161 Texas 1 0 10,161 Utah 1 0 10,161 Vermont 1 0 10,161 Virginia 1 0 10,161 Washington 1 0 10,161 West Virginia 1 0 10,161 Wisconsin 1 0 10,161 Wyoming 1 0 10,161 Puerto Rico 1 0 10,161 Other 1 0 10,161 Total, U.S. 52 0 528,372

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. However, the relevant period for discounting is over the firs t two years of the time horizon because EPA assumes that the current stat e regulations will be revised to comply with the proposed rule within two years from the rule publication. The presen t value (PV) of the baseline cost over 2 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 1.97

Similarly, the PV of costs under the pr oposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ௉ ௧ୀଵ ∙ 1.97

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

6

‐ 653  Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, the present value (PV) is co mputed over the first two year period as explained in Step 4 above.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Admin-02; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 20 0 20 Alaska 20 0 20 Arizona 20 0 20 Arkansas 20 0 20 California 20 0 20 Colorado 20 0 20 Connecticut 20 0 20 Delaware 20 0 20 Florida 20 0 20 Georgia 20 0 20 Hawaii 20 0 20 Idaho 20 0 20 Illinois 20 0 20 Indiana 20 0 20 Iowa 20 0 20 Kansas 20 0 20 Kentucky 20 0 20 Louisiana 20 0 20 Maine 20 0 20 Maryland 20 0 20 Massachusetts 20 0 20 Michigan 20 0 20 Minnesota 20 0 20 Mississippi 20 0 20 Missouri 20 0 20 Montana 20 0 20 Nebraska 20 0 20*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

6

‐ 654 Nevada 20 0 20 New Hampshire 20 0 20 New Jersey 20 0 20 New Mexico 20 0 20 New York 20 0 20 North Carolina 20 0 20 North Dakota 20 0 20 Ohio 20 0 20 Oklahoma 20 0 20 Oregon 20 0 20 Pennsylvania 20 0 20 Rhode Island 20 0 20 South Carolina 20 0 20 South Dakota 20 0 20 Tennessee 20 0 20 Texas 20 0 20 Utah 20 0 20 Vermont 20 0 20 Virginia 20 0 20 Washington 20 0 20 West Virginia 20 0 20 Wisconsin 20 0 20 Wyoming 20 0 20 Puerto Rico 20 0 20 Other 20 0 20

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Admin-02; Juri sdictions; Step 6;*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 655 National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 1,041 0 1,041 U.S. (annualized value) 119 0 119

6.2.1.2 Admin-03. Submit State Plans and Report Certified Applicator Data
This proposal would require jurisdictions to s ubmit the revised plans (Admin-02) to EPA, along with a report of certif ied applicator data.

Step 1 - Calculate Baseline Costs

Table: Admin-03; Step 1; Baseline Cost per Jurisdiction or per Federal Agency

Action Wage ($/hour) Time (hours) Frequency Cost ($) 0 Total 0

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 EPA assumes that all jurisdictions woul d need to submit their revised plans.

 The opportunity cost of the responsible sta ff is shown in the table below (BLS, 2013c); see Chapter 3.3.5

Table: Admin-03; Step 2; Cost per Jurisdiction to Submit Revised Plans

Action Wage ($/hour) Time (hours) Frequency Cost ($) Jr. Technician 39.44 8 1 315.52 Total 315.52

This proposal includes 5 federal agencies, each at the half of the state cost.

Table: Admin-03; Step 2; Cost per Federal Agency to Submit Revised Plans

Action Wage ($/hour) Time (hours) Frequency Cost ($) Jr. Technician 39.44 4 1 157.76 Total 157.76*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

6

‐ 656 Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territories and tribes except Puerto Rico (“Other” in this proposal includes 4 entities). In addition, this proposal includ es 5 federal agencies, each at the half of the state cost.

 The baseline cost per jurisdiction ( cost r,i, a B ) is presented in Step 1.

 The cost per jurisdiction of submitting a revised plan ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost, which is the same

as cost r,i, a B in Step 1 because there is one jurisdiction in a region.

 RC P is the jurisdictional level cost of the potential requirement, which is the same as
cost r,i, a P in Step 2 because there is one jurisdiction in a region

 N = Number of jurisdictions , which is always 1.

Given the above: RC B = cost r,i, a B x 1 RC t=3 P = cost r,i, P x 1

Values are presented in the table below.

Table: Admin-03; Step 3; Total Annual Baseline and Potential Requirement Costs for Revising Regulations and Certification Plans

Jurisdiction N Jurisdiction RC B ($) RC t=3 P ($) Alabama 1 0 316 Alaska 1 0 316 Arizona 1 0 316 Arkansas 1 0 316 California 1 0 316 Colorado 1 0 316 Connecticut 1 0 316 Delaware 1 0 316 Florida 1 0 316 Georgia 1 0 316 Hawaii 1 0 316 Idaho 1 0 316 Illinois 1 0 316 Indiana 1 0 316 Iowa 1 0 316 Kansas 1 0 316*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

6

‐ 657 Kentucky 1 0 316 Louisiana 1 0 316 Maine 1 0 316 Maryland 1 0 316 Massachusetts 1 0 316 Michigan 1 0 316 Minnesota 1 0 316 Mississippi 1 0 316 Missouri 1 0 316 Montana 1 0 316 Nebraska 1 0 316 Nevada 1 0 316 New Hampshire 1 0 316 New Jersey 1 0 316 New Mexico 1 0 316 New York 1 0 316 North Carolina 1 0 316 North Dakota 1 0 316 Ohio 1 0 316 Oklahoma 1 0 316 Oregon 1 0 316 Pennsylvania 1 0 316 Rhode Island 1 0 316 South Carolina 1 0 316 South Dakota 1 0 316 Tennessee 1 0 316 Texas 1 0 316 Utah 1 0 316 Vermont 1 0 316 Virginia 1 0 316 Washington 1 0 316 West Virginia 1 0 316 Wisconsin 1 0 316 Wyoming 1 0 316 Puerto Rico 1 0 316 Other 4 0 1,262 Federal Agencies 5 0 789 Total, U.S. 60 0 18,142*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

6

‐ 658 Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. However, the relevant period for discounting is over the firs t two years of the time horizon because EPA assumes that the current stat e regulations will be revised to comply with the proposed rule within two years from the rule publication. The presen t value (PV) of the baseline cost over 2 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 1.97

Similarly, the PV of costs under the pr oposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ௉ ௧ୀଵ ∙ 1.97

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, the present value (PV) is co mputed over the first two year period as explained in Step 4 above.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Admin-03; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 0.6 0.0 0.6 Alaska 0.6 0.0 0.6 Arizona 0.6 0.0 0.6 Arkansas 0.6 0.0 0.6 California 0.6 0.0 0.6*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

6

‐ 659 Colorado 0.6 0.0 0.6 Connecticut 0.6 0.0 0.6 Delaware 0.6 0.0 0.6 Florida 0.6 0.0 0.6 Georgia 0.6 0.0 0.6 Hawaii 0.6 0.0 0.6 Idaho 0.6 0.0 0.6 Illinois 0.6 0.0 0.6 Indiana 0.6 0.0 0.6 Iowa 0.6 0.0 0.6 Kansas 0.6 0.0 0.6 Kentucky 0.6 0.0 0.6 Louisiana 0.6 0.0 0.6 Maine 0.6 0.0 0.6 Maryland 0.6 0.0 0.6 Massachusetts 0.6 0.0 0.6 Michigan 0.6 0.0 0.6 Minnesota 0.6 0.0 0.6 Mississippi 0.6 0.0 0.6 Missouri 0.6 0.0 0.6 Montana 0.6 0.0 0.6 Nebraska 0.6 0.0 0.6 Nevada 0.6 0.0 0.6 New Hampshire 0.6 0.0 0.6 New Jersey 0.6 0.0 0.6 New Mexico 0.6 0.0 0.6 New York 0.6 0.0 0.6 North Carolina 0.6 0.0 0.6 North Dakota 0.6 0.0 0.6 Ohio 0.6 0.0 0.6 Oklahoma 0.6 0.0 0.6 Oregon 0.6 0.0 0.6 Pennsylvania 0.6 0.0 0.6 Rhode Island 0.6 0.0 0.6 South Carolina 0.6 0.0 0.6 South Dakota 0.6 0.0 0.6 Tennessee 0.6 0.0 0.6 Texas 0.6 0.0 0.6 Utah 0.6 0.0 0.6*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 660 Vermont 0.6 0.0 0.6 Virginia 0.6 0.0 0.6 Washington 0.6 0.0 0.6 West Virginia 0.6 0.0 0.6 Wisconsin 0.6 0.0 0.6 Wyoming 0.6 0.0 0.6 Puerto Rico 0.6 0.0 0.6 Other 2.5 0.0 2.5 Federal Agencies 1.6 0.0 1.6

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Admin-03; Juri sdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 36 0 36 U.S. (annualized value) 4 0 4



### 6.3 Federal Administration (Admin-04 and -06) This category includes the potenti al requirements for EPA for revi ewing the plans or programs of jurisdictions and federal agen cies, and for revising EPA- administered tribal plans.

6.3.1.1 Admin-04. EPA Review of Jurisdiction and Federal Agency Plans & Programs
Step 1 - Calculate Baseline Costs

Table: Admin-04; Step 1; Baseline Cost per Jurisdiction or per Federal Agency

Action Wage Time Frequency Cost*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

6

‐ 661 ($/hour) (hours) ($) 0 Total 0

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 Assume it takes EPA 80 hours to review a jurisdiction’s plan or program.

 This proposal include 5 federal agencies, each at the half of the cost of reviewing a jurisdiction plan.

 This proposal includes 4 plans in Other.

 The opportunity cost of the responsible sta ff is shown in the table below (BLS, 2013c); see Chapter 3.3.5

Table: Admin-04; Step 2; EPA Review Co st per Jurisdiction Plan or Program

Action Wage ($/hour) Time (hours) Frequency Cost ($) EPA review of a plan or program (Jr. Technician) 39.44 80 1 3,155

Total 3,155

Table: Admin-04; Step 2; EPA Review Co st per Federal Agency Plan or Program

Action Wage ($/hour) Time (hours) Frequency Cost ($) EPA review of a federal agency plan (Jr. Technician) 39.44 40 1 1,578

Total 1,578

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs

 For the analysis, EPA identifies fifty two (52) jurisdictions – 50 stat es, Puerto Rico, and “Other,” which includes all the territories and tribes except Puerto Rico (in this proposal, “Other” includes 4 entities). In addition, this proposal includes 5 federal agencies, each at the half of the cost of reviewing a jurisdiction plan.

 The baseline cost per jurisdiction ( cost r,i, a B ) is presented in Step 1.

 The cost per jurisdiction of reviewing a certification plan or program ( cost r,i, a P ) is presented in Step 2.

 The baseline regional cost (RC B ) is the current jurisdictional level cost, which is the same

as cost r,i, a B in Step 1 because there is one jurisdiction in a region.

 RC P is the jurisdictional level cost of the potential requirement, which is the same as
cost r,i, a P in Step 2 because there is one jurisdiction in a region*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

6

‐ 662  N = Number of jurisdictions , which is always 1.

Given the above: RC B = cost r,i, a B x 1 RC t=3 P = cost r,i, P x 1

Values are presented in the table below.

Table: Admin-04; Step 3; Total Annual Baseline and Potential Requirement Costs for EPA Review of Jurisdiction and Federal Agency Plan or Program

Jurisdiction N Jurisdiction RC B ($) RC t=3 P ($) Alabama 1 0 3,155 Alaska 1 0 3,155 Arizona 1 0 3,155 Arkansas 1 0 3,155 California 1 0 3,155 Colorado 1 0 3,155 Connecticut 1 0 3,155 Delaware 1 0 3,155 Florida 1 0 3,155 Georgia 1 0 3,155 Hawaii 1 0 3,155 Idaho 1 0 3,155 Illinois 1 0 3,155 Indiana 1 0 3,155 Iowa 1 0 3,155 Kansas 1 0 3,155 Kentucky 1 0 3,155 Louisiana 1 0 3,155 Maine 1 0 3,155 Maryland 1 0 3,155 Massachusetts 1 0 3,155 Michigan 1 0 3,155 Minnesota 1 0 3,155 Mississippi 1 0 3,155 Missouri 1 0 3,155 Montana 1 0 3,155 Nebraska 1 0 3,155 Nevada 1 0 3,155 New Hampshire 1 0 3,155*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 663 New Jersey 1 0 3,155 New Mexico 1 0 3,155 New York 1 0 3,155 North Carolina 1 0 3,155 North Dakota 1 0 3,155 Ohio 1 0 3,155 Oklahoma 1 0 3,155 Oregon 1 0 3,155 Pennsylvania 1 0 3,155 Rhode Island 1 0 3,155 South Carolina 1 0 3,155 South Dakota 1 0 3,155 Tennessee 1 0 3,155 Texas 1 0 3,155 Utah 1 0 3,155 Vermont 1 0 3,155 Virginia 1 0 3,155 Washington 1 0 3,155 West Virginia 1 0 3,155 Wisconsin 1 0 3,155 Wyoming 1 0 3,155 Puerto Rico 1 0 3,155 Other 4 0 12,621 Federal Agencies 5 0 7,888 Total, U.S. 60 0 181,424

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. However, the relevant period for discounting is over the firs t two years of the time horizon because EPA assumes that the current stat e regulations will be revised to comply with the proposed rule within two years from the rule publication. The presen t value (PV) of the baseline cost over 2 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 1.97*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

6

‐ 664 Similarly, the PV of costs under the pr oposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ௉ ௧ୀଵ ∙ 1.97

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement

 Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, the present value (PV) is co mputed over the first two year period as explained in Step 4 above.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Admin-04; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Alabama 6.2 0.0 6.2 Alaska 6.2 0.0 6.2 Arizona 6.2 0.0 6.2 Arkansas 6.2 0.0 6.2 California 6.2 0.0 6.2 Colorado 6.2 0.0 6.2 Connecticut 6.2 0.0 6.2 Delaware 6.2 0.0 6.2 Florida 6.2 0.0 6.2 Georgia 6.2 0.0 6.2 Hawaii 6.2 0.0 6.2 Idaho 6.2 0.0 6.2 Illinois 6.2 0.0 6.2 Indiana 6.2 0.0 6.2 Iowa 6.2 0.0 6.2 Kansas 6.2 0.0 6.2 Kentucky 6.2 0.0 6.2 Louisiana 6.2 0.0 6.2 Maine 6.2 0.0 6.2 Maryland 6.2 0.0 6.2*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

6

‐ 665 Massachusetts 6.2 0.0 6.2 Michigan 6.2 0.0 6.2 Minnesota 6.2 0.0 6.2 Mississippi 6.2 0.0 6.2 Missouri 6.2 0.0 6.2 Montana 6.2 0.0 6.2 Nebraska 6.2 0.0 6.2 Nevada 6.2 0.0 6.2 New Hampshire 6.2 0.0 6.2 New Jersey 6.2 0.0 6.2 New Mexico 6.2 0.0 6.2 New York 6.2 0.0 6.2 North Carolina 6.2 0.0 6.2 North Dakota 6.2 0.0 6.2 Ohio 6.2 0.0 6.2 Oklahoma 6.2 0.0 6.2 Oregon 6.2 0.0 6.2 Pennsylvania 6.2 0.0 6.2 Rhode Island 6.2 0.0 6.2 South Carolina 6.2 0.0 6.2 South Dakota 6.2 0.0 6.2 Tennessee 6.2 0.0 6.2 Texas 6.2 0.0 6.2 Utah 6.2 0.0 6.2 Vermont 6.2 0.0 6.2 Virginia 6.2 0.0 6.2 Washington 6.2 0.0 6.2 West Virginia 6.2 0.0 6.2 Wisconsin 6.2 0.0 6.2 Wyoming 6.2 0.0 6.2 Puerto Rico 6.2 0.0 6.2 Other 24.9 0.0 24.9 Federal Agencies 15.5 0.0 15.5

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

6

‐ 666  NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Admin-04; Juri sdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 358 0 358 U.S. (annualized value) 41 0 41

6.3.1.2 Admin-06: Revise EPA-Administered Tribal Plans
Step 1 - Calculate Baseline Costs

Table: Admin-06; Step 1; Base line Cost per Jurisdiction

Action Wage ($/hour) Time (hours) Frequency Cost ($) 0 Total 0

Step 2 - Calculate Cost per Applicat or of Potential Requirement

Assumptions:

 EPA assumes that all jurisdictions would need to revise their laws and plans.

 The opportunity costs of the re sponsible staff are shown in the table below (BLS, 2013c); see Chapter 3.3.5

Table: Admin-06; Step 2; Cost per Jurisdiction to Revi ew EPA-Administered Tribal Plan

Action Wage ($/hour) Time (hours) Frequency Cost ($) Review EPA-administered tribal plan (Jr. Technician) 39.44 100 1 3,944

Total 3,944

Step 3 – Estimate Jurisdictional Level Baseline and Compliance Costs*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 667  For this proposal, EPA identifies 4 jurisdictions in “Other.”

 The baseline cost per jurisdiction ( cost r,i, a B ) is presented in Step 1.

 The cost per jurisdiction of revi ewing EPA-administered plan ( cost r,i, a P ) is presented in Step 2.

 N = Number of jurisdictions.

Given the above: RC B = cost r,i, a B x 4 RC t=3 P = cost r,i, P x 4

Values are presented in the table below.

Table: Admin-06; Step 3; Total Annual Baseline and Potential Require ment Costs for Reviewing EPA-Administered Tribal Plans

Jurisdiction N Jurisdiction RC B ($) RC t=3 P ($) Other 4 0 15,776 Total, U.S. 4 0 15,776

Step 4 - Calculate the PV of Costs

Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

Baseline cost is expected to remain constant in the absence of changes in the certification requirements. However, the relevant period for discounting is over the firs t two years of the time horizon because EPA assumes that the current stat e regulations will be revised to comply with the proposed rule within two years from the rule publication. The presen t value (PV) of the baseline cost over 2 years at a 3% discount rate is

ܥܴ൫ܸܲ ௜,௥ ஻ ൯ ൌ ܴܥ ௥,௜ ஻ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ஻ ௧ୀଵ ∙ 1.97

Similarly, the PV of costs under the pr oposal, at a 3% discount rate, is

ܥܴ൫ܸܲ ௜,௥ ௉ ൯ ൌ ܴܥ ௥,௜ ௉ ௧ୀଵ ∙ ෍ 1 ሺ 1 ൅ 0.03 ሻ ௧ିଵ ଶ

௧ୀଵ ܥܴ ൌ ௜,௥ ௉ ௧ୀଵ ∙ 1.97

Step 5 - Estimate the Jurisdictional Incrementa l Cost of the Potential Requirement*** EO12866 Review Draft – Deliberative – Do Not Cite, Quote or Release During the Review***

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‐ 668  Calculating the present value (PV) of the baseline and potential cost streams follows the methodology presented in Chapter 3, Section 3.2 of the Economic Analysis.

 In this case, the present value (PV) is co mputed over the first two year period as explained in Step 4 above.

 PV RC P = Present Value of the Regional Co st of the Potential requirement

 PV RC B = Present Value of the Baseline Regional Cost

 PV IC = Present Value of the Regional Incremental Cost

 PV IC = PV RC P - PV RC B

Table: Admin-06; Steps 4 & 5; Jurisdictional Present Values of Potential Requirement, Baseline, and Incremental Costs

Jurisdiction PV RC P ($1,000) PV RC B ($1,000) PV IC ($1,000) Other 31 0 31

Step 6 - Estimate the National Level Incrementa l Cost of the Potential Requirement

Definitions:

 NC P = National Cost of Potential requirement

 NC B = National Baseline Cost

 NIC = National Incremental Cost Calculations:

 NC P = the sum of PV RC P (see Steps 4 & 5) for all jurisdictions

 NC B = the sum of PV RC B (see Steps 4 & 5) for all jurisdictions

 NIC = the sum of PV IC (see Steps 4 & 5) for all jurisdictions

 3% discount rate used for PV and annualized value

Table: Admin-06; Juri sdictions; Step 6; National Costs of Potential Requirem ent, Baseline, and Incremental Costs
NC P ($1,000) NC B ($1,000) NIC ($1,000) U.S. (present value) 31 0 31 U.S. (annualized value) 4 0 4