SUPPORTING STATEMENT PART A: INFORMATION COLLECTION REQUEST FOR THE MANDATORY REPORTING OF GREENHOUSE GASES, SUBPARTS RR
and UU: INJECTION AND GEOLOGICAL SE QUESTRATION OF CARBON DIOXIDE

FINAL RULE
EPA ICR No. 2372.02

1. IDENTIFICATION OF THE INFORMATION COLLECTION

1(a) Title of the Information Collection

TITLE: “Mandatory Reporting of Greenhouse Gases (GHG Reporting Rule), Subparts RR and UU: Injection and Geological Sequest ration of Carbon Dioxide – Final Rule.”

OMB Control Number: 2060-AP88

1(b) Short Characterization/Abstract

The United States (U.S.) Environmental Protection Agency (EPA) is amending the Mandatory Reporting of Greenhouse Gases Program at 40 CFR 98 to add reporting requirements covering facilities that conduct in jection of carbon dioxide (CO 2 ) (subpart UU) and geologic sequestration of CO 2 (subpart RR). The new subparts enab le EPA to track the flow of CO 2 across the CCS system. Subpart UU information on CO 2 received reconciled with CO 2 supply
information enables EPA to bette r understand the quantity of CO 2 supply that is used for underground injection compared to the quantity supplied to other end-uses. Subpart RR information will provide a nationally consistent approach for quantifying CO 2 sequestered, and monitoring the growth and efficacy of GS as a GHG mitigation technology to evaluate relevant policy options.

Under subpart UU, all facilities that inject CO 2 underground, regardless of the amount of
emissions from the facili ty or the amount of CO 2 injected, must report the mass of CO 2 supply received for injection and the inputs used to ca lculate this quantity, and the source of the CO 2 , if
known.

Subpart RR requirements apply to all faciliti es that conduct geologi c sequestration (GS) unless they receive approval from EPA for a GS Research and Development (R&D) waiver. Facilities covered by subpart RR source category must calculate the mass of CO 2 geologically sequestered by subtracting total CO 2 emissions from the annual mass of CO 2 injected. Facilities that are conducting enhanced oil and natural gas recovery (ER) must additionally subtract the
mass of CO 2 produced from oil and gas production wells from the annual mass of CO 2 injected. In the subpart RR regulations, facilities must report the mass of CO 2 supply received for injection, the mass of CO 2 injected, the annual mass of CO 2 geologically sequestered, the inputs used to calculate these quantities. They w ill also be required to report source of the CO 2 if known
and the cumulative amount of CO 2 geologically sequestered since the facility first reported under subpart RR. EPA is also requiring monitoring ac cording to a site-specific monitoring, reporting,

FINAL DRAFT 1 October 2010and verification (MRV) plan, which will be us ed to verify the amount of injected CO 2 as sequestered and to quantify emissions in the event that injected CO 2 leaks to the surface.

2. NEED FOR AND USE OF THE COLLECTION

2(a) Need/Authority for the Collection

EPA is extending the mandatory reporting pr ogram using its existing authority under §114 of the Clean Air Act (CAA). CAA §114(a) provide s EPA broad authority to collect data for the purpose of, among other things, “carrying out any provision” of the Act. Under §114(a)(1), the Administrator may require emissions sources, persons subject to the CAA, or persons whom the Administrator believes may have necessary in formation to monitor and report emissions and provide such other information as the Administra tor requests for the purposes of carrying out the provisions in the CAA.

Further information on the authority provide d under §114 of the CAA is contained in section I.C. of the preamble to the proposed Mandatory Reporting of Greenhouse Gases Rule (MRR) (74 FR 16448).

The CAA provides EPA with broad authority to require the comprehensive and accurate
information mandated in this rule because such data will inform, and are relevant to, EPA’s analyses of various CAA provisi ons. EPA may gather informa tion for a variety of purposes, including for the purpose of a ssisting in the development of implementation plans or of emissions standards under CAA §111, determini ng compliance with implementation plans or such standards, or more broadly for “carrying ou t any provision” of the CAA. In addition, CAA §103 authorizes EPA to establish a national re search and development program, including nonregulatory approaches and technologies for the prevention and control of air pollution as it relates to GHGs and climate change.

The above discussion is not a comprehens ive listing of all th e possible ways the
information collected under this rule could assist EPA in carryi ng out any provision of the CAA. Rather it illustrates how the information reque st fits within the parameters of EPA’s CAA authority.

The information from CO 2 injection and facilities that conduct geologic sequestration
will allow EPA to make well-informed decisions about whether and how to use the CAA to regulate these facilities and encourage voluntar y reductions. Because EPA does not yet know the specific policies that will be adopted, the data reported throug h the mandatory reporting system should be of sufficient quality to inform polic y and program development. Also, the reporting rule covers a broad range of sectors of the economy.

EPA has identified the following goals of th e mandatory reporting system, including:

• Obtain data that is of sufficient quality th at it can be used to analyze and inform the development of a range of future climate change policies and potential regulations.

FINAL DRAFT 2 October 2010• Balance the rule’s coverage to maximize the amount of emissions reported while excluding small emitters.

• Create reporting requirements that are, to the extent possible and appropriate, consistent with existing GHG reporting progr ams in order to reduce reporting burden for all parties involved.

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

The rule provides EPA, other government agencies, industry, and the public with the ability to start tracking data on CO 2 injected underground and CO 2 sequestered. These data will provide information and transp arency on the amount of CO 2 injected and geologically sequestered in the United States and, in combin ation with other subparts of the MRR, will enable
EPA to track the flow of CO 2 across the entire CO 2 capture and sequestration (CCS) system.

Data on CO 2 injection and GS will enable EPA to monitor the growth and efficacy of GS (and therefore CCS) as a GHG mitig ation technology over time and to evaluate relevant policy options. For example, EPA will be able to track whether incentives or regulations are needed to encourage faster or further GS project development. EPA will also be able to track whether ER sites are transitioning to GS and consider whet her incentives or regulations are needed. Where ER facilities are reporting GS, EPA will be able to evaluate ER as a potentially non-emissive end use. In combination with subpart PP, EPA w ill be able to reconcile this data with CO 2 supplied in order to better understand the quantity of CO 2 supplied to emissive and non-emissive end uses. Furthermore, this data will inform Agency policy decisions under C AA §§ 111 and 112 related
to the use of CCS for mitigating GHG emissions.

Accurate and timely information on carbon em issions is essential for informing CAA GHG policies and future climate change policy deci sions. These data could also be coupled with efforts at the local, state, federal, and international levels to assist corporations and facilities in determining their carbon footprints and identify ing further opportunities to reduce emissions.

Standardization of GHG data will also be a benefit to industr y. Once facilities invest in the institutional knowledge and systems to repor t emissions, the cost of monitoring should fall and the accuracy of the accounting should improve. A standardized reporting program will also allow for facilities to benchmark themselves against similar facilities to understand better their relative standing within their industry.

The rule is not intended to be a survey a nd the respondents affected by the rule are not intended to be a statistical sample of a larger universe of entities. EPA does not intend to use the
data collected under this rule to characterize non-reporting enti ties or to draw statistical
inferences about a larger population.

FINAL DRAFT 3 October 20103. NONDUPLICATION, CONSULTATION S, AND OTHER COLLECTION
CRITERIA

3(a) Nonduplication

Before developing rule, EPA considered whet her it could access the data needed for the purposes outlined through other i nventory, reporting, and registry programs that exist, at the state, regional, and federal government leve ls. The Agency has determined that the CO 2 injection and sequestration reporting program will supplement and complement, rather than duplicate, existing programs’ data. For example, EPA considered CO 2 data needed for its Underground Injection Control (UIC) program’s new class of injection well – Class VI – for GS projects (73 FR 43492 (July 25, 2008)). The UIC program is not de signed to provide suffi cient assurance that sequestered CO 2 is not emitted to the atmosphere for GS facilities, and the reporting mechanism under the UIC program would not meet the Inte rgovernmental Panel on Climate Change (IPCC) guidelines (discussed below). Therefore, the GHG reporting rule builds on the UIC program requirements for monitoring with the additi onal goals of verifying the amount of CO 2 sequestered and collecting data on any CO 2 surface emissions from GS facilities.

Documentation of EPA’s review of GHG (including CO 2 ) monitoring protocols used by federal, state, and international voluntary and mandatory GHG programs, and the review of state mandatory GHG rules, can be found in the docket at EPA-HQ-OAR-2008-0508-056. The programs that specifically rela te to monitoring and reporting CO 2 injection and sequestration are
described below:

• As described above, EPA is finalizing a ne w rule under the UIC program for Class VI permit regulation to address the risks to USDWs from CO 2 injection for GS. Data currently collected under a state-issued UIC permit is submitted to states while, under subparts RR and UU, reporters will be s ubmitting data directly to EPA. Also, under subpart RR, any facility sequestering CO 2 underground, regardless of their UIC permit classification can choose to qualify and report as a facility covered by subpart RR source category. In the Agency’s August 2009 Notice of Data Availability supplementing the UIC Class VI proposal, EPA noted that it was evaluating the need for a more comprehensive regulatory framework for GS. It is EPA’s intention to coordinate GS requirements across relevant statutory programs to increa se regulatory clarity and improve the accuracy of GS data collected.

• EPA also reviewed the Inventory of U.S. Greenhouse Gas Emissions and Sinks (Inventory), which is an assessment of nati onal greenhouses gas emissions that the EPA prepares annually, with input from several ot her agencies, and submits to the Secretariat of the United Nations Framework Convention on Climate Change (UNFCCC). EPA currently follows the 1996 IPCC guidelines and accounts for CCS in the Inventory by making general, top-down assumptions about the fate of CO 2 supplied. In contrast, the new rule requires a more robust and complex approach that calculates CO 2 injection and, if applicable, sequestration. EPA anticipates that bottom-up facility -level reporting on

FINAL DRAFT 4 October 2010injection and, if applicable, sequestration will lead to improvements in the quality of the Inventory.

• The IPCC published new invent ory guidelines in 2006 which di rectly address accounting for GS and include methodologies for the estima tion of emissions from capture, transport, injection, and geologic sequestration of CO 2 . In order to meet the 2006 IPCC guidelines, the U.S. needs to collect specific CO 2 end-use information at a high resolution, criteria that cannot be met by any existing CCS data co llection efforts. EPA believes that the GS monitoring, reporting, and verifica tion requirements of this rule are consistent with the 2006 IPCC guidelines and will help EPA tr ansition to the IPCC 2006 guidelines.

• In addition, the Agency examined the voluntar y GHG registry that th e U.S. Department of Energy’s (DOE’s) Energy Information Administration (EIA) implements under §1605b of the Energy Policy Act of 1992. Under EIA’s “1605(b) program,” reporters can choose to prepare an entity-wide GHG inve ntory and identify specific GHG reductions made by the entity. The 2007 updated 1605(b) gu idance outlines a vo luntary process to report data on CO 2 sequestration. Currently, no CO 2 injection or sequestration entity has reported under the 1605(b) program per the 2007 guidelines. Furthermore, although the 1605(b) guidance cites the importance of reporting CO 2 leakage should it occur, the guidance does not include a di scussion of, procedures for, or methodologies for using monitoring technologies and tech niques to quantify the leakage. As a result of this, and the fact that reporting is vol untary, the 1605(b) program would not meet the data needs of this rule or the 2006 IPCC guidelines.

• The DOE also administers the Climate Vi sion program (Voluntary Innovative Sector Initiatives: Opportunities Now), whose goal includes acce lerating the transition to technologies, practices, and processes th at are capable of reducing, capturing, or sequestering GHGs. All voluntary reporting under the Climate Vision Program is covered under 1605(b), and as such, it also does not meet EPA’s needs for mandatory reporting.

• EPA also reviewed the Internal Revenue Service (IRS) Notice 2009-83 Credit for Carbon Dioxide Sequestration under section 45Q. To claim the credit, a taxpayer must follow general monitoring and verifica tion principles, calculate CO 2 sequestered in the fiscal year using a mass-balance equation, and re port to IRS the amount of qualified CO 2 sequestered in the fiscal year. However, th e level of reporting and transparency of the
IRS data collected would not meet the veri fication needs of the rule. The IRS reporting requirement expires after 75 million metric tons of CO 2 is reported as sequestered to IRS, data reporting is only as robust as to meet th e standards in the case of an IRS audit, and the IRS does not outline procedures for quantifying and reporting any CO 2 leakage that may occur as is necessary for the rule. Ther efore, EPA has concluded that the IRS data
would not meet the needs outlined in this rule.

EPA intends to harmonize CCS requirements acro ss relevant statutory or other programs in order to minimize any redundancy and any burde n on reporters. To reduce burden on reporters and program agencies, the Agency will share emissions data with the exception of any

FINAL DRAFT 5 October 2010confidential business information (CBI) data with relevant agen cies or approved entities using, where practical, shared tools and infrastructure.

3(b) Public Notice Required Prior to Information Collection Request (ICR)
Submissions to OMB

As part of the Federal Register notice on the regulation, EPA solicited comments on the ICR for the proposed rule and the estimates in the proposed ICR. EPA also solicited comments on specific aspects of the information collec tion. EPA did not receive any comments that specifically addressed the ICR. However, the Ag ency did receive and consider comments on the reporting requirements of the proposed rule. Th e preamble to the final rule contains and summary of these public comments.

In compliance with the Pape rwork Reduction Act (44 USC 3501 et seq .), EPA submitted
this ICR for the final rule to the Office of Management and Budget (OMB) for review and approval.

3(c) Consultations

During the development of the GHG Repor ting Rule, EPA conducted a proactive communications outreach program to inform the pub lic about the rule development effort. Prior to the proposal signature, EPA st aff held more than 100 meetings with stakeholders, including:

• Trade associations and firms in poten tially affected industries/sectors;

• State, local, and tribal environmental c ontrol agencies and regional air quality planning organizations;

• State and regional organizat ions already involved in GHG emissions reporting, such as The Climate Registry, California Air Resources Board, and the Western Climate Initiative; and

• Environmental groups and other nongovernmental organizations.

EPA also met with federal agencies, incl uding DOE and the U.S. Department of Agriculture, which have progr ams relevant to GHG emissions.

The proposed GHG Reporting Rule was signed on March 10, 2009 by Administrator Lisa Jackson and published in the Federal Register on April 10, 2009 (74 FR 16448). EPA held two public hearings, on April 6 and 7, 2009, in Arlington, Virginia, and on April 16, 2009, in Sacramento, California. In addition, EPA met with over 4,000 additional people in over 150 groups via webinars, conferences, individual mee tings, and other forms of outreach. Details of these meetings are available in the docket (EPA-HQ-OAR-2008- 0508). EPA issued a final rule on October 30, 2009 (74 FR 56260).

FINAL DRAFT 6 October 2010During the sixty day comment period, EP A received approximately 16,800 comments, 15,800 of which were identical mass mailers. EPA received many comments on subpart PP (Suppliers of CO 2 ) that CO 2 injected underground should be considered when estimating
emissions from the CO 2 supply industry. Some commenters specified that some of the CO 2 supplied for the purposes ER is additionally seque stered rather than emitted and characterized ER operations as “closed systems” rather than emissive. Other commenters stated that including reporting requirements for ge ologically sequestered CO 2 will fill a critical gap in the reporting
system.

EPA agrees that ER is a potentially non-emi ssive end use and that GS data reporting from ER sites can assist EPA in quantifying the amount of CO 2 that is permanently and securely geologically sequestered. In addition, EPA agrees that GS reporting requirements will provide information and transpar ency on the amount of CO 2 injected and geologica lly sequestered in the
United States.

Therefore, EPA is amending the GHG Reportin g Rule to add subparts RR and UU. On March 22, 2010, Administrator Jack son signed a proposed rule for the mandatory reporting of GHGs from facilities that inject carbon dioxide underground for th e purposes of GS or ER. The public comment period for this proposed rule making was open for 60 days after publication in the Federal Register. In addition, a public he aring on this proposal was held on April 19, 2010, in Arlington, Virginia.

3(d) Effects of Less Frequent Collection

The reporting frequency for emi ssions data to EPA has been established to minimize the burden on owners and operators of affected fac ilities, while ensuring that the reporting rule collects facility-specific data of sufficient qualit y to achieve the Agency’s objectives. For entities required to report, the rule requires the subm ission of annual reports. EPA is requiring all CO 2 injection facilities monitor and report the CO 2 compositions and masses quarterly in order to
account for fluctuations in the CO 2 composition over the reporting year that are caused by the
source of the CO 2 , the conditions of the captu re and transportation, and the seasons of the year.

If the information collection were not carried out on this schedule, the Agency will not be able to develop an informed tracking system of trends in CO 2 injection and se questration across the country. EPA needs the data quickly at the beginning of ever y reporting year in order to electronically verify it, publish it as author ized by the CAA, and use it for the purposes described. In addition, the annual reporting may ev entually be used to climate policies and potential future regulations.

3(e) General Guidelines

This collection of information is consis tent with all OMB guidelines under 5 CFR

1320.6.

FINAL DRAFT 7 October 20103(f) Confidentiality

In general, emission data collected under §114 and §208 of the CAA cannot be declared CBI. However, if any CBI is reported under th is GHG reporting rule, EPA would protect CBI in accordance with regulations in 40 CFR Chapter 1, part 2, subpart B. Although CBI determinations are usually ma de on a case-by-case basis, EPA has issued guidance on what
constitutes emissions data that cannot be considered CBI (956 FR 7042 –7043, February 21, 1991).

3(g) Sensitive Questions

This information collection does not ask a ny questions concerning sexual behavior or attitudes, religious beliefs, or other matters usually considered private.

4. THE RESPONDENTS AND THE INFORMATION REQUESTED

The respondents in this information colle ction include owners or operators of CO 2 injection wells that must report in compliance with the rulemaking of their source categories.
This section describes these CO 2 source categories (industry sectors) that must participate in subpart RR or subpart UU of the MRR, the data items required of program participants, and the activities in which participants must engage to collect, assess, and in some cases submit the required data items.

This section describes the industry sector (CO 2 source categories) that must participate in subparts RR or UU of the MRR, the data item s required of program participants, and the activities in which participants must engage to collect, assess, and in some cases submit the required data items.

FINAL DRAFT 8 October 20104(a) Respondents/North Am erican Industrial Classificati on Systems (NAICS) Codes

Reporting facilities included in the subpart UU source categor y consists of any well or group of wells that inject a CO 2 stream into the subsurface, including sub-seabed offshore. These wells include any wells to enhance oil and gas re covery or for GS R&D (including some Federal respondents), not included in this source category ar e the facilities that report under subpart RR. Subpart RR source category consists of a ny well or group of wells that inject a CO 2 stream for long-term containment into a subsurface geologic formation, including sub-seabed offshore, at no threshold. However, facilities conducting ER and that not hold a UI C Class VI permit do not meet the definition of the subpart RR source ca tegory unless they choose to opt-in. Also, owners or operators of R&D wells may submit a request to receive an exemption from reporting under this source category. This source categor y does not include: (1) storage of CO 2 above ground; (2) temporary storage of CO 2 below ground; (3) transpor tation or distribution of CO 2 ; (4) purification, compression, or processing of CO 2 ; (5) capture of CO 2 ; and (6) CO 2 stored in cement, precipitated calcium carbonate (PCC), or any other technique that does not involve injection of CO 2 into the subsurface.

The industry sector is listed below by its subpart of the rule and its NAICS code for
reference.

Part and Subpart NAICS code(s)

CO 2 Enhanced Oil and
Gas Recovery Projects 211 (Oil and gas extraction projects using CO 2 enhanced oil and gas recovery)
Acid Gas Injection
Projects 211111 or 211112 (Projects that inject acid gas containing CO 2 underground)
GS Projects N/A CO 2 geologic sequestration projects

4(b) Information Requested

(i) Data Items

Reporting Requirements

The following is a summary of the information re quested by facilities th at will be subject to subpart RR and subpart UU:

General requirements that apply to all sources. All respondents that belong to a source category in which all respondents report, including subpart RR a nd UU, must submit the general information required in 40 CFR 98.3 and adhere to the reporting, certification, and notification requirements in 40 CFR 98.4 and 40 CFR 98.2, if app licable. EPA is not making any changes to the reporting requirements containe d in these sections. This inform ation is described in the ICR for the Mandatory Reporting of Greenhouse Ga ses; Final Rule (EPA ICR No. 2300.03). In addition, many facilities that are affected by th e supplemental rule have GHG emissions from

FINAL DRAFT 9 October 2010multiple source categories of 40 CFR Part 98, and th ey must meet the reporting requirements of the specific subparts that de scribe these requirements.

Data reporting requirements that apply to all facilities that are covered under Subpart RR . All facilities that meet the definitio n of this source category must report the following:

1) If CO 2 is received by pipeline, report the follo wing for each receiving flow meter:

a. The total mass of CO 2 received (metric tons) annually.
b. If a volumetric flow mete r is used to receive CO 2 report the following: (i) The volumetric flow through a rece iving flow meter at standard conditions (in standard cubic meters) in each quarter. (ii) The volumetric flow through a receiving flow meter that is redelivered to another facility wit hout being injected into your well (in standard cubic meters) in each quarter. (iii) The CO 2 concentration in the flow (volume percent CO 2 /100) in each
quarter.

c. If a mass flow meter is used to receive CO 2 report the following: (i) The mass flow through a receiving flow meter (in metric tons) in each
quarter. (ii) The mass flow through a receiving flow meter that is redelivered to another facility without being injected into your well (in metric tons) in each quarter. (iii) The CO 2 concentration in the flow (wt. percent CO 2 /100) in each
quarter.
d. If the CO 2 received is wholly injected and not mixed with any other supply of
CO 2 , report whether the monitoring proce dures in §98.444(a)(4) were followed.

e. The standard or method used to calculate each value.
f. The number of times in the reporting year for which substitute data procedures
were used to calcula te values reported.

g. Whether the flow meter is mass or volumetric.
h. A numerical identifier for the flow meter. 2) If CO 2 is received in containers, report:

a. The mass (in metric tons) or volume at standard conditions (in standard cubic meters) of contents in co ntainers in each quarter.
b. The concentration of CO 2 of contents in containers (volume or wt. percent

CO 2 /100) in each quarter.

c. The total mass of CO 2 received (in metric tons) annually.
d. The standard or method used to calculate each value.

e. The number of times in the reporting year for which substitute data procedures
were used to calcula te values reported. 3) If more than one receiv ing flow meter is used, report the total mass of CO 2 received (metric tons) through all flow meters annually. 4) The source of the CO 2 received according to the following categories:

a. CO 2 production wells.
b. Electric generating unit.

FINAL DRAFT 10 October 2010c. Ethanol plant.
d. Pulp and paper mill.

e. Natural gas processing.
f. Gasification operations.

g. Other anthropogenic source.
h. Discontinued enhanced oil and gas recovery project.
i. Unknown. 5) Whether data collection began according to the approved MRV plan in a reporting year prior to this annual report submission. 6) If yes is reported in paragra ph (5) above, report the following. If this is the first year of reporting, report the following starting on the da te data collection began according to the approved MRV plan.

a. For each injection flow meter (mass or volumetric), report: (i) The mass of CO 2 injected (metric tons) annually. (ii) The CO 2 concentration in flow (volume or wt. percent CO 2 /100) in each quarter. (iii) If a volumetric flow meter is used, th e volumetric flow rate at standard conditions (in standard cubic meters) in each quarter. (iv) If a mass flow meter is used, the ma ss flow rate (in metric tons) in each quarter. (v) A numerical identifier for the flow meter. (vi) Whether the flow meter is mass or volumetric. (vii) The standard used to calculate each value. (viii) The number of times in the reporting year for which substitute data procedures were used to calculate values reported. (ix) The location of the flow meter.
b. The total CO 2 injected (metric tons) in the reporting year as calculated in Equation RR-6.

c. CO 2 equipment leakage and vented CO 2 emissions. (i) The mass of CO 2 emitted (in metric tons) annually as equipment leakage or vented emissions from equipment located on the surface
between the flow meter used to measure injection quantity and the injection wellhead. (ii) The mass of CO 2 emitted (in metric tons) annually as equipment leakage or vented emissions from equipment located on the surface between the production wellhead and th e flow meter used to measure production quantity.
d. For each separator flow meter (mass or volumetric), report: (i) CO 2 mass produced (metric tons) annually. (ii) CO 2 concentration in flow (volume or wt. percent CO 2 /100) in each
quarter. (iii) If a volumetric flow meter is used, volumetric flow rate at standard conditions (standard cubic meters) in each quarter. (iv) If a mass flow meter, mass flow rate (metric tons) in each quarter. (v) A numerical identifier for the flow meter. (vi) Whether the flow meter is mass or volumetric.

FINAL DRAFT 11 October 2010(vii) The standard used to calculate each value. (viii) The number of times in the reporting year for which substitute data procedures were used to calculate values reported.

e. The value for X (%) used in Equation RR-9 and as determined according to the EPA-approved MRV plan.
f. Annual CO 2 produced in the reporting year as calculated in Equation RR-9.

g. For each leakage pathway through which CO 2 emissions occurred, report: (i) A numerical identifier for the leakage pathway. (ii) The CO 2 (metric tons) emitted through that pathway in the reporting

year. h. Annual CO 2 mass emitted (metric tons) by surface leakage in the reporting year as calculated by Equation RR-10.
i. Annual CO 2 (metric tons) sequestered in subsurface geologic formations in the reporting year as calculat ed by Equation RR-11 or RR-12. j. Cumulative mass of CO 2 (metric tons) reported as sequestered in subsurface geologic formations in all years since the well or group of wells became subject to reporting requirements under this subpart.
k. Date that the most recent MRV plan was approved by EPA and the MRV plan approval number that was issued by EPA.
l. An annual monitoring report that co ntains the following components: (i) A narrative history of the mon itoring efforts conducted over the previous calendar year, including a li sting of all monitoring equipment that was operated, its period of ope ration, and any relevant tests or surveys that were conducted. (ii) A description of any changes to the monitoring program that were
concluded were not material ch anges warranting submission of a revised MRV plan under §98.448(d). (iii) A narrative history of an y monitoring anomalies that were detected in the previous calendar year and how they were investigated and
resolved. (iv) A description of any surface leakages of CO 2 , including a discussion of all methodologies and technologies involved in detecting and quantifying the surface leakages and any assumptions and uncertainties involved in calculating the amount of CO 2 emitted.

m. If a well is permitted under the Underg round Injection Control program, for each injection well, report: (i) The well identification number us ed for the Underground Injection Control permit. (ii) The Underground Injection Control permit class.

n. If an offshore well is not subject to the Safe Drinking Water Act, for each injection well, report any well identi fication number and any identification number used for the legal instrument authorizing geologic sequestration.

Facilities that meet the requirements of a subpart RR source category must develop an monitoring, reporting, and verification (MRV) pla n, submit the MRV plan to EPA, receive an

FINAL DRAFT 12 October 2010approved MRV plan from EPA, implement the EPA-approved plan, and submit annual reports. A MRV plan must contain the following components:

1. Delineation of the maximum monitoring area and the active monitoring area.

2. Identification and evaluation of the potential surface leakage pathways and an assessment of the likelihood, magnitude, and timing, of surface leakage of CO 2 through these pathways in the MMA.

3. A strategy for detecting and quan tifying any surface leakage of CO 2 in the event leakage

occurs. 4. An approach for establishing the expected environmental and operational baselines.
5. A summary of considerations made to calcu late site-specific variables for the mass balance equation.

Data reporting requirements that apply to a ll facilities that are covered under Subpart UU.
All facilities that meet the definition of this source categ ory must report the following:

1) If CO 2 is received by pipeline, report the follo wing for each receiving flow meter:

a. The total mass of CO 2 received (metric tons) annually.
b. If a volumetric flow mete r is used to receive CO 2 : i. The volumetric flow through a receiving flow meter at standard conditions (in standard cubic mete rs) in each quarter.
ii. The volumetric flow through a receiving flow meter that is redelivered to another facility without being inject ed into your well (in standard cubic meters) in each quarter.
iii. The CO 2 concentration in the flow (volume percent CO 2 /100) in each
quarter.

c. If a mass flow meter is used to receive CO 2 : i. The mass flow through a receiving flow meter (in metric tons) in each
quarter.
ii. The mass flow through a receiving flow meter that is redelivered to another facility without being injected into your well (in metric tons) in each quarter.
iii. The CO 2 concentration in the flow (wt. percent CO 2 /100) in each quarter.
d. The standard or method used to calculate each value.

e. The number of times in the reporting year for which substitute data procedures
were used to calcula te values reported.
f. Whether the flow meter is mass or volumetric. 2) If CO 2 is received in containers, report:

a. The mass (in metric tons) or volume at standard conditions (in standard cubic meters) of contents in co ntainers in each quarter.
b. The concentration of CO 2 of contents in containers (volume or wt. percent

CO 2 /100) in each quarter.

c. The total mass of CO 2 received (in metric tons) annually.
d. The standard or method used to calculate each value.

e. The number of times in the reporting year for which substitute data procedures
were used to calcula te values reported.

FINAL DRAFT 13 October 20103) If more than one receiv ing flow meter is used, report the total mass of CO 2 received (metric tons) through all flow meters annually. 4) The source of the CO 2 received according to the following categories:

a. CO 2 production wells.
b. Electric generating unit.

c. Ethanol plant.
d. Pulp and paper mill.

e. Natural gas processing.
f. Gasification operations.

g. Other anthropogenic source.
h. Discontinued enhanced oil and gas recovery project.
i. Unknown.

Recordkeeping Requirements

General requirements that apply to all sources. EPA is not making any changes to the general recordkeeping requirements that appl y to all sources, incl uding subparts RR and UU.
This information is described in the ICR fo r the Mandatory Reporting of Greenhouse Gases; Final Rule (EPA ICR No. 2300.03). In addition, many facilities that are affected by the new rule have GHG emissions from multiple source categories of 40 CFR Part 98, and they must meet the reporting requirements of the specific subpart s that describe these requirements.

Recordkeeping Requirements that apply to all facilities that are covered under Subpart RR . All facilities that meet the definitio n of this source category must keep the following records in an electronic or hard-copy format (as appropriate):

1. Retain quarterly records of CO 2 received, including mass flow rate of contents of containers (mass or volumet ric) at standard conditions and operating conditions, operating temperature and pressure, a nd concentration of these streams.

2. Quarterly records of produced CO 2 , including mass flow or volumetric flow at standard conditions and operating conditions, ope rating temperature and pressure, and
concentration of these streams.

3. Quarterly records of injected CO 2 including mass flow or volumetric flow at standard conditions and operating conditions, ope rating temperature and pressure, and
concentration of these streams.

4. Annual records of informati on used to calculate the CO 2 emitted by surface leakage from leakage pathways.
5. Annual records of informati on used to calculate the CO 2 emitted as equipment leakage or vented emissions from equipment loca ted on the surface between the flow meter used to measure injection quant ity and the injection wellhead.

6. Annual records of informati on used to calculate the CO 2 emitted as equipment leakage or vented emissions from equipment lo cated on the surface between the production wellhead and the flow meter used to measure production quantity.

7. Any other records as specified for re tention in the EPA-approved MRV plan.

FINAL DRAFT 14 October 2010Recordkeeping Requirements that apply to all facilities that are covered under Subpart UU. All facilities must also keep the following records in an electronic or hard-copy format (as appropriate):

1. Retain quarterly records of CO 2 received for injection, including mass flow rate or contents of containers (mass or volumet ric) at standard conditions and operating conditions, operating temperatur e and pressure, and concentr ation of these streams.

(ii) Respondent Activities

The owner or operator of a fac ility that is subject to subpa rt RR must report total annual
GHG emissions in metric tons of CO 2 . The primary tasks that reporting program respondents will perform include:

1. Developing appropriate monitoring plans for each affected source and each affected unit at a source, as applicable;

2. Operation and maintenance activities associated with the monitoring, including quality assurance activities;

3. Ensuring data quality, preparing annual reports of emissions data, and submitting these reports to EPA;

4. Potentially responding to questions or error messages from EPA; and
5. Maintaining records for a minimum of th ree years. In addition, respondents must purchase the necessary monitoring hardwa re and purchase the electronic data reporting software (or software upgrades) if they had not done so for another reporting program.

Reports must present the annual mass GHG emissions from each source category separately. The calculations used to determin e GHG emissions, the frequency at which those calculations are required, the methods used to estimate missing data, and the QA/QC requirements depend on the sp ecific source category.

Facilities subject to subpar t UU must report the mass of CO 2 received for injection. It is anticipated that these data will be gathered from company records.

5. THE INFORMATION COLLECTED – AGENCY ACTIVITIES, COLLECTION METHODS, AND INFORMATION MANAGEMENT

5(a) Agency Activities

EPA Headquarters activities a ssociated with the rule include program start-up activities to prepare for receiving the reported data. These activities include database and software design, developing guidance and training affected s ources, responding to stakeholders, and
communication and outreach on the rule requirements.

FINAL DRAFT 15 October 2010Once the reporting program is in place, EPA program operation activities will include monitoring and verification of emission repor ts, database and software maintenance, communication and outreach, and program evaluation.

5(b) Collection Methodology and Management

EPA will establish a central repository of i nventory data for all respondents. Respondents will report data electronically, and EPA will store th e data in the database. The electronic format, which will reflect the underlying electronic data reporting system, will be developed prior to the first reporting date. By specifying in the rule text the exact information that must be reported but not specifying the exact reporting format, EPA info rms reporters about exactly what information they must report and has flexibility to modify the electronic reporting format and electronic data reporting system in a timely manner based on implementation experience and new technology. EPA has used this approach successfully in exis ting programs, such as the Acid Rain Program and the Title VI Stratospheric Ozone Protecti on Program, facilitating the deployment of new reporting formats and reporting systems that take advantage of technologies such as eXtensible Markup Language (XML), and reduce the burden on reporters and the Agency. The electronic reports submitted under this rule are subject to the provisions of 40 CFR part 3, specifying EPA systems to which electronic submissions must be made and the requirements for valid electronic signatures.

The Designated Representative must use an electronic signature device (e.g., a PIN or password) to submit a report. If the Designated Representative holds an electronic signature device that is currently used for valid elec tronic signatures accepte d under another Agency program, EPA intends to design the new reporting system to also accept valid electronic signatures executed with that device where feasible.

EPA’s reporting format for a given reporting y ear could make use of several ID codes – unique codes for a unit or facility. To ensure proper matching between databases, e.g., EPAassigned facility ID codes and the ORIS (DOE ) ID code, and consistency from one reporting year to the next, we plan for the reporting sy stem to provide each facility with a unique identification code to be sp ecified by the Administrator.

The Agency plans to publish data submitted or collected under this rulemaking through EPA's Web site, reports, and other formats (e.g., XML), with the exception of any CBI data. The data could be used by EPA and other agencies, a nd other organizations and stakeholders for air modeling, analyzing emissions by in dustry sector and region, informing future climate change policy decisions, and answering questions from the public. The new system will follow Agency standards for design, security, data element and reporting format conformance, and accessibility. In designing the data base, EPA will attempt to minimize respondents’ burden by integrating the new reporting requirements with existing data co llection and data management systems, when
feasible.

FINAL DRAFT 16 October 20105(c) Small Entity Flexibility

The Agency has determined that the rule wi ll not have a significant economic impact on a
substantial number of small entities and furthe rmore, will not impose any requirements on small entities. Currently EPA believes small ER opera tions will most likely be UIC Class II ER projects. Sequestering CO 2 via injection wells is a voluntary action that will only be undertaken by a small entity if it were economically benefi cial for the firm. Furthermore, GS of CO 2 is still a scientifically complex activity, the cost of which is anticipated to be prohibitive to small entities. Therefore, it is anticipated that sma ll firms would not el ect to sequester CO 2 via injection wells.

Although this rule will not have a significant economic impact on a substantial number of small entities, EPA nonetheless t ook several steps to re duce the impact of this rule on small entities. For example, EPA is establishing mon itoring and reporting requi rements that build off of the UIC program. In addition, EPA is estab lishing equipment and methods that may already be in use by a facility for compliance with its UIC permit. Also, EPA is requiring annual reporting instead of more frequent reporting.

5(d) Collection Schedule

Facilities must collect data a nd calculate emissions at varying frequencies, as described in the subpart RR and UU requirement s. Facilities that must me et the subpart RR’s reporting requirements must submit GHG emission reports annually. EPA is requiring facilities that conduct GS to resubmit an updated MRV plan to EPA for approval at a minimum frequency of every five years from the first year of implem entation. This is consistent with the frequency suggested by the IPCC. In general, the MRV plan should be revised as e xperience is gained over the course of the project and should keep pace with the development of monitoring instruments
and methods.

6. ESTIMATING THE BURDEN A ND COST OF THE COLLECTION

This section presents EPA’s estimates of th e burden and costs to respondents associated
with the activities described in Section 4 as we ll as the federal burden hours and costs associated
with the activities described in Section 5(a). EPA estimates that , over the three years covered by this request, the total respondent burden associated with this reporting will average 4,794 hours per year and the cost to respondents of the in formation collection will average $884,493 per year.

Section 6(a) of this ICR provi des estimates of burden (hours) for all respondent types. Section 6(b) contains estimates of respondent costs for the information collection. Section 6(c)
summarizes federal burden and co sts. Section 6(d) describes the respondent universe and the
total burden and cost of this collection to respondents. Sectio n 6(e) presents the bottom line
burden and cost. The burden statement for this information collection is in Section 6(f).

FINAL DRAFT 17 October 20106(a) Estimating Respondent Burden

Respondent burden estimates are presented in Exhibit 6.1. EPA estimates that the total
annual burden to all affected entit ies is 4,794 hours per year over the three years covered by this
information collection. EPA also estimated the numb er of responses, or actions taken as a result of the rule, per respondent (facility) per year; fo r facilities collecting samples on a daily basis, this means a minimum of 365 responses per ye ar. Exhibit 6.1 presents aggregate burden by sector only; for the details of burden calculations, please see A ppendix A (for Subpart RR) and Appendix B (for Subpart UU).

6(b) Estimating Respondent Costs

Costs to respondents associated with this information collect ion include labor costs (i.e., the cost of labor by facility staff to meet the rule’s information collection requirements) and nonlabor costs (e.g., the cost of purchasing and inst alling monitoring equipment or contractor costs associated with providing the required information).

To calculate labor costs, EPA estimated tech nical, managerial, clerical, and legal loaded labor rates for each industry sector using labo r rates from the Bureau of Labor Statistics [1] and applying a 60% loading factor [2] ; these rates vary somewhat by s ector. For Subpart RR, the labor rates are: $101.31 for industrial managers; $63.89 for industrial engineers/technicians; $29.65 for clerical staff; and $107.23 for geologists. Non-la bor costs (capital and O&M) are presented in
Exhibit 6-1 below.

EPA estimates that the total annual cost to all affect ed non-federal entities is approximately $884 thousand over the three years c overed by this information collection. Exhibit 6.1 presents aggregate costs; for the details of EPA’s cost calc ulations, please see Appendix A.



### Exhibit 6.1 Annual Average Respondent Burden and Cost For the GHG Reporting Rule

No.
Respondents Responses/
Respondent Total

Responses Average
Burden per

Response

(hrs) Total Burden
(hrs) Total Labor Cost ($K) Capital Cost ($K) O&M Cost ($K) Total Cost ($K)

RR. Injection of

Carbon Dioxide 2 16.1 32 38.45 1,234 $133 $88 $244 $465

UU. Geological

Sequestration

of Carbon

Dioxide 87 6.0 520 6.85 3,560 $224 $0 $196 $420

TOTAL 89 22 552 45 4,794 $357 $88 $439 $884 Source Category Annual Average - 3 year ICR Period

[1] These rates reflect adjustments of th e manufacturing sector's average productiv ity increase of 3.7% per year for 6 quarters between 2006 Q2 and 2007 Q4, based on the estimate released by the Bureau of Labor Statistics in March

2008.

[2] The ICR Handbook (N ovember 2005) recommends using a multiplier of 1.6 to account for benefits and overhead related to government wages; this is considered a conser vative estimate (potentially high) for the private sector.

FINAL DRAFT 18 October 20106(c) Estimating Agency Burden and Cost

This section describes the burden and cost to the federal government associated with this
information collection. Federal activities under this information collection include EPA Headquarters oversight of the reporting program and required reporting by federally owned GHG generating facilities.

EPA burden and cost

EPA activities associated with subparts RR and UU of the MRR include Headquarters oversight and implementation of the reporting program, e.g., monitoring and verification of emission reports, database and software mainte nance, communication and outreach, and program
evaluation. EPA estimates that H eadquarters will devote up to 2 fu ll time equivalents (FTEs), or 4,160 hours to these activities. EPA will incur in cremental costs for subparts RR and UU of approximately $344,000 for database and softwa re design, developing guidance, training, responding to stakeholders, communication and ou treach, contractor s upport and data base maintenance, and for third-pa rty verification activities.

In addition, the Federal government will burde n associated with MRV plans and annual reports from DOE Federal facilities.

To develop EPA labor costs, EPA estimates th e average hourly labor rate for salary and overhead and benefits for Agency staff to be $50.14. To derive this figure, EPA multiplied the hourly compensation at GS-12, Step 5 on the 2008 GS pay scale ( $31.34) by the standard government benefits multiplication factor of 1.6 to account for overhead and benefits.

Burden and cost for federal faci lities covered by the rule

Exhibit 6.2 presents the annual burden and cost for federal facilities that must comply
with the rule.



### Exhibit 6.2 Annual Agency Burden and Cost

Information

Collection

Activity Annual Responses Total

Annual

Burden Labor Cost Non-Labor

Cost Total Annual

Cost
EPA Oversight 1 4,160 $208,582 $135,000 $343,582

DOE Facilities 9 492 $36,866 $20,304 $57,170

TOTAL 10 4,652 $245,448 $155,304 $400,752

FINAL DRAFT 19 October 20106(d) Estimating the Respondent Un iverse and Total Burden and Costs

The number of respondents in each sector th at will perform the re quired activities under this information collection is presented in Exhibit 6.1. The required activ ities depend on whether the facility is a Class VI or a non-Class VI injection facility. These activities ar e described in Section 4(b) of this ICR.

6(e) Bottom Line Burden Hours and Costs

The bottom line burden hours and co sts are shown in Exhibit 6.3.



### Exhibit 6.3 Bottom Line Annual Burden and Cost

Number of Respondents 89

Total Annual Responses 552

Number of Responses per Respondent 6

Total Respondent Hours 4,794

Hours per Response 8.68

Annual O&M and Capital Cost $527,197

Total Respondent Cost (labor + non) $884,493

Total Hours (Respondents and agency) 9,445

Total Cost (Respondents plus Agency) $1,285,245

Note: Totals may not add due to independent rounding.

6(f) Burden Statement

The respondent reporting burden fo r this collection of informa tion is estimated to average 4,794 hours per year for a three year period, including a first year where initial a nd capital costs are anticipated, and two subseque nt years in which identical annual costs are estimated. The average annual burden to EPA and other federal entities for this period is estimated to be 4,283 hours, which includes 4,160 hours for agency overs ight activities and 492 hours for DOE Federal facilities that must comply w ith the rule. The annual public reporting and recordkeeping burden
for this collection of informa tion is estimated to average 8.68 hours per response. Burden means the total time, effort, or financial resources expe nded by persons to generate, maintain, retain, or disclose or provide information to or for a fe deral agency. This includes the time needed to review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, and ve rifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to respond to a collection of information; search data sources; complete a nd review the collection of information; and
transmit or otherwise disclose the information.

FINAL DRAFT 20 October 2010FINAL DRAFT 21 October 2010 An agency may not conduct or sponsor, a nd a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. The OMB control numbers for EPA’s regulations are listed in 40 CFR part 9.

To comment on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including the use of automated collection techniques, EPA has established a public docket for this ICR under Docket ID Number EPA-HQ-OAR-2008-0508, which is available for online viewing at http://www.regulations.gov, or in person viewing at the Air a nd Radiation docket in the EPA Docket Center (EPA/DC), EPA West Build ing, Room 3334, 1301 Constitution Avenue, NW, Washington, D.C. The EPA Docket Center Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal hol idays. The telephone number for the Reading Room is (202) 566-1744, and the telephone number for the Air and Radiation docket is (202)
566-1742. An electronic version of the public docket is availabl e at http://www.regulations.gov. This site can be used to submit or view public comments, access the index listing of the contents of the public docket, and to access those documen ts in the public docket that are available electronically. When in the system, select “search,” then key in th e Docket ID Number identified above. Also, you can send comments to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, D.C. 20503, Attention: Desk
Officer for EPA. Please include the EPA Docket ID Number EPA-HQ-OAR-2008-0508 and OMB Control Number 2060-AP88 on any correspondence.