### SUPPORTING STATEMENT **ENVIRONMENTAL PROTECTION AGENCY NESHAP for Petroleum Refineries (40 CFR**  **P art 63,**  **S ubpart CC)**  **(Renewal)**
**1. Identification of the Information Collection 1(a) Title**  **of the Information Collection** NESHAP for Petroleum Refineries (40 CFR P art 63, S ubpart CC) (Renewal) , EPA I CR Number s 1692. 07 , OMB Control Number 2060

- 0340 **1(b) Short Characterization/Abstract**
The National Emission Standards for Hazardous Air Pollutants (NESHAP) for Petroleum Refineries ( 40 CFR part 63, subpart CC ) were proposed on July 15, 1994, promulgated on August 18, 1995 , and most recentl y amended on October 28, 2009

. These regulations apply to the following existing and new petroleum refining process units and emission points located at refineries that are major sources of hazardous air pollutants (HAP) emissions, including: miscellaneous process vents, storage vessels, wastewater streams, equipment leaks, gasoline loading racks, and m arine ves sel loading operations. Provisions was also added for the control of HAP emissions from heat exchange s ys tems, which include closed

- loop recirculation sy stems with cooling towers and once

- through cooling water sy stems. These regulations also apply to storage vessels and equipment leaks associated with bulk gasoline terminals or pipe line breakout stations that are related to an affected petroleum refinery . New facilities include those that commenced construction or reconstruction after the date of proposal. This information is being collected to assure compliance with 40 CFR part 63, subpart CC. In general, all NESHAP standards require initial notifications, performanc e tests, and periodic reports. Owners or operators are also required to maintain records of the occurrence and duration of any startup, shutdown, or malfunction in the operation of an affected facility, or any period during which the monitoring sy stem is inoperative. These notifications, reports, and records are essential in determining compliance, and are required of all sources subject to NESHAP. Any owner or operator subject to the provisions of this part shall maintain a file of these measurements and retain the file for at least five years following the date of such measurements, maintenance reports, and records. All reports are sent to the del egated state or local authority

. In the event that there is no such delegated authority , the reports are sent directl y to the U

. S

. Environmental Protection Agency (EPA) regional office. Approximately 153 sources are currently subject to the regulation , and it is estimated that one additional source will become subject to the regulation in the next three years. Itis assumed that, on average, a refinery will reconstruct 10 percent of the existing storage vessels, process units subject to equipment leak provisions, and process vents

.

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This I CR is being combined with I CR number 2334.02, OMB control number 2060

- 0340, and the renewal ICR. The Office of Management and Budget (OMB) approved the currentl y active I CR without any “ Terms of Clearance. ”
There are approximately

153 petroleum refineries in the United States, which are owned and operated b y the petroleum refinery industry . No ne of the facilities in the United States are owned b y state, local , tribal or the Federal government ; all are privatel y, o wned for

- profit businesses . The burden to the “Affected Public” is listed below in Table 1: Annual Res p ondent Burden and Cost

- NESHAP for Petroleum Refineries (40 CFR P art 63, S ubpart CC) (Renewal)

. The Federal government burden associated with the revi ew of reports submitted by the respondent as shown below in Ta ble 2: Average Annual EPA Burden and Cost

- NESHAP for Petroleum Refineries (40 CFR P art 63, S ubpart CC) (Renewal)

. **2. Need for and Use of the Collection 2(a) Need/Authority for the**  **Collection** The EPA is charged under section 112 of the Clean Air Act, as amended, to establish standards of performance for each category or subcategory

of major sources and area sources of hazardous air pollutants. These standards are applicable to new or existing sources of hazardous air pollutants and shall require the maximum degree of emission reduction. In addition, section 114(a) states that the Administrator may require any

owner or operator subject to any requirement of this Act to:

(A) Establish and maintain such records; (B) make such reports; (C) install, use, and maintain such monitoring equipment, and use such audit procedures, or methods; (D) sample such emissions (in accordance with such procedures or methods, at such locations, at such intervals, during such periods, and in such manner as the Administrator shall prescribe); (E) keep records on control equipment parameters, production variables or other indirect data when direct monitoring of emissions is impractical; (F) submit compliance certifications in accordance with Section 114(a)(3); and (G) provide such other information as the Administrator may reasonabl y require. In the Administrator's judgment, HAP emissions from petroleum refineries cause or contribute to air pollution that may reasonably

be anticipated to endanger public health or welfare. Therefore, the NESHAP were promulgated for this source category at 40 CFR part 63, subpart CC.

### 3

**2(b) Practical Utility/Users of the Data** The recordkeeping and reporting requirements in the standard ensure compliance with the applicable regulations , which w ere promulgated in accordance with the Clean Air Act. In additio n, the collected information is used for targeting inspections and as evidence in legal proceedings.
Performance tests are required in order to determine an affected facility ’s initial capability to comply

with the emission standard. Continuous emission monitors are used to ensure compliance w ith the standard at all times. During the performance tests, a record of the operating parameters under which compliance was achieved , may be recorded and used to determine compliance in place of a continuous emission monitor. The notifications required in the standard are used to inform the Agency or delegated authority when a source becomes subject to the requirements of the regulations. The reviewing authority may then inspect the source to ensure that the pollution control devices are properl y installed and operated, that leaks are being detected and repaired, and that the standards are being met. The performance test may also be observed. The required semiannual reports are used to determine periods of excess emissions, to identify problems at the facility , to verify operation/maintenance procedures and compliance.
**3. Non** 
**- duplication, Consultations, and Other Collection Criteria**  The requested recordkeeping and reporting are required under 40 CFR part 63, subpart CC. **3(a) Non**

**- duplication**  If the subject st andards have not been delegated the information is sent directly to the appropriate EPA regional office. Otherwise, the information is sent directl y to the delegated state or local agency . If a state or local agency has adopted its own similar standards to implement the Federal standards, a cop y of the report submi tted to the state or local agency is sent to the Administrator in lieu of the report required b y the Federal standards. Therefore, no duplication exists. **3(b) Public Notice Required Prior to ICR Submission to OMB** An announcement of a public comment period for the renewal of this I CR was published in the Federal Register ( 76 FR 26900 ) on May 9, 2011 . No comments were received on the burden published in the Federal Register

.

### 4

**3(c) Consultations**
The Agency has con sulted industry experts and internal data sources to project the number of affected facilities and industry growth over the next three years. The primary source of information as reported by industry , in compliance with the recordkeeping and reporting pro visions in the standard is the OTI S, which is operated and maintained by EPA’s Office of Compliance. OTI S is EPA’s database for the collection, maintenance, and retrieval of all compliance data. We estimate that there are approximately 153 existing respo ndents subject to the standard and that one new source will become subject to the standard over the three

- ye ar period covered b y this I CR. Industry trade association and other interested parties w as provided an opportunity to comment on the burden associated with the standard as it was being developed and the standard has been previously

reviewed to determine the minimum information needed for compliance purposes. For this renewal, we consulted with the following representatives : Contact Organization P hone David Friedman National Petrochemical & Refiners Association (202) 457

- 0480 Steve Hagle Texas Commission on Environmental Quality (512) 239

- 3900

It is our policy to respond after a thorough review of comments received from the public since the last ICR renewal as well as those submitted in response to the f irst Federal Register n otice. In this case, no comments were received. **3(d) Effects of Less Frequent Collection**  Less frequent information collection would decrease the margin of assurance that facilities are continuing to meet the standards. Requirements for information gathering and recordkeeping are useful techniques to ensure that good operation and maintenance practices are applied and emission limitations met. I f the information required by these standards were collected less frequentl y, the proper operation and maintenance of control equipment and the possibility

of detecting violations would be less likely

.

. **3(e) General Guidelines**
These reporting or recordkeeping requirements do not violate any of the regulations established by

OMB at 5 CFR 1320.5. These standards require respondents to maintain all records, including reports and notifications, for at le ast five years. This is consistent with the General Provisions as applied to the standards. EPA believes that the five

- ye ar records retention requirement is consistent the

### 5

Part 70 permit program and the five

- ye ar statute of limitations on which the permi t program is based. In addition , the retention of records for five years would allow EPA to establish the compliance history

of a source and any pattern of compliance for purposes of determining the appropriate level of enforcement action. EPA has found that the most flagrant violators frequentl y have violations extending beyond the five years. In addition, EPA would be prevented from pursuing the violators due to the destruction or nonexistence of essential records. **3(f) Confidentiality** Any information submitted to the Agency for which a claim of confidentiality is made will be safeguarded according to the Agency policies set forth in Title 40, Chapter 1, part 2, subpart B

- Confidentiality of Business Information (CBI) (see 40 CFR 2; 41 FR 3 6902, September 1, 1976; amended by 43 FR 40000, September 8, 1978; 43 FR 42251, September 20, 1978; 44 FR 17674, March 23, 1979). **3(g) Sensitive Questions**
The reporting or recordkeeping requirements in the standard do not contain sensitive questions. **4. The Respondents and the Information Requested 4(a) Respondents/SIC Codes**  The respondents to the recordkeeping and reporting requirements are petroleum refineries that are m ajor sources of HAP emissions. The United States Standard Industrial Classif ication (SI C) code for the respondents affected b y the standards is SI C 2911, which corresponds to the North American Industry Classification System (NAI CS) 324110 for petroleum refineries. **4(b) Information Requested (i) Data Items**  In this ICR, all the data that is recorded or reported are required b y NESHAP for Petroleum Refineries (40 CFR Part 63, Subpart CC) (Renewal). A source must make the following reports:
**Notification** Notification of compliance, status report, periodic report for emissions averaging (optional) 63.653(a) & (c)
Notification of intent to construct/reconstruct 63.9(b)(4), 63.654(d)(2)

### 6 **Notification** Notification of date of construction/reconstruction 63.9(b)(4), 63.654(d)(2) Notification of date of actual startup 63.9(b)(4), 63.654(d)(2)

Application for approval of construction/reconstruction 63.5(d), 63.9(b)(5), 63.566(b), 63.640(k)(2)(i), 63.654(c), 63.654(h)(6) Notification of intent to construct/reconstruct a control device 63.5(b)(6), 63.5(d)(1)

Notification of compliance status 63.182(c), 63.428(c)(2), 63.640(k)(2)(ii), 63.654(b), 63.654(d), 63.654(f), 63.654(h)(6) 63.655(f)(1)(vi) Notification of performance test and site

- specific test plan 63.567(d), (f), 63.642(d)(2), 63.654(c), Results of performance test 63.567(d), 63.654(c), 63.654(d) Request for extension of compliance 63.9(c) Notification of special compliance requirements 63.9(d) Engineering report of vapor collection s ys tem for marine tank vessel loading operations 63.567(f), 63.654(c) Notifications for wastewater streams 61.357, 63.654(a) Notifications of inspections of storage vessels 63.654(h)(2) Notification of determination of applicability to flexible process units 63.654(h)(6)(i) Notification of determination of applicability to variable storage vesse l 63.654(h)(6)(ii) Notification of determination of applicability to variable distillation units 63.654(h)(6)(iii)

### 7 **Reports** Submission of implementation plan for approval (optional) 63.652(b), 63.653(c) & (d) Periodic report for emissions averaging (optional) 63.652(l) Reports for wastewater streams 61.357, 63.654(a)
Reports for gasoline loading racks 63.428(b), (c), (g)(1), and (h)(1) through (h)(3), 63.654(b) Annual reports of excess emissions and continuous monitoring sy stem performance, or summary report, for marine tank vessel loading operations 63.567(e), 63.654(c) Reports for equipment leaks 60.487 or 63.182, 63.654(d) Semiannual ( “ Periodic ” ) and immediate reports, including startup, shutdown, and malfunction reports 63.10(d)(5), 63.654(g), 63.654(h)(1) , 63.655(g)(9) A source must keep the following records: **Recordkeeping** Records for implementation plan (optional) 63.653(a), (b), & (d) Records for wastewater streams 61.356, 63.654(a) Records for gasoline loading racks 63.428(c), 63.654(b) Records for vapor collection sy stem for marine tank vessel loading operations 63.567(g), 63.654(c) Records of vapor tightness for marine tank vessel loading operations 63.567(h), 63.654(c) Records of current vapor tightness test results for marine tank vessel loading operations 63.567(i), 63.654(c) Records for equipment leaks 60.486 or 63.181, 63.654(d) Records for storage vessels 63.123, 63.654(i)(1) Records of performance test results and test reports 63.654(i)(2) Records for monitoring of miscellaneous process vents 63.654(i)(3) Records of miscell aneous notifications and reports 63.654(i)(4)

### 8 **Recordkeeping** Records of heat exchange sy stem sampling results, leak detection, and repair 63.655(i)(4) Records of startup, shutdown, and malfunction of processes 63.10(b)(2)(i) Records of malfunction of control equipment 63.10(b)(2)(ii) Records of corrective actions t aken during periods of startup shutdown, and malfunction 63.10(b)(2)(iv) Records to demonstrate conformance with startup, shutdown, and malfunction plan. 63.10(b)(2)(v) Records of calibration checks, adjustments and maintenance on CMS 63.10(b)(x), (xi) Electronic Reporting Some of the respondents are using monitoring equipment that automatically records parameter data. Although personnel at the affected facility must still evaluate the data, internal automation has significantly reduced the burden associated with monitoring and recordkeeping at a plant site. Also, re gulatory

agencies , in cooperation with the respondents continue to create reporting s ys tems to transmit data electronicall y. However, electronic reporting s ys tems are not widely used. At this time, it is estimated that approximately 10 percent of the res pondents use electronic reporting.

**(ii) Respondent Activities**

**Respondent Activities** Read instructions. Install, calibrate, maintain, and operate continuous temperature monitors or other monitoring devices for HAP control devices. Perform initial performance test and repeat performance tests if necessary

. Write the notifications and reports listed above. Enter information required to be recorded above. Submit the required reports developing, acquiring, installing, and utilizing technology and sy stems for the purpose of collecting, validating, and verifying information. Develop, acquire, install, and utilize technology and sy stems for the purpose of processing and maintaining information.

### 9 **Respondent Activities** Develop, acquire, install, and utilize technology and s ys tems for the purpose of disclosing and providing information. Adjust the existing way s to comply with any previously applicable instructions and requirements. Train personnel to be able to respond to a collection of information. Transmit, or otherwise disclose the information.
Currently , sources are using monitoring equipment that provides parameter data in an automated way

(e.g., continuous parameter monitoring s ys tem). Although personnel at the source still need to evaluate the data, this type of monitoring equipment has significantl y reduced the burden associated with monitoring and recordkeeping.
**5. The Information Collected: Agency Activities, Collection Methodology, and Information**  **Management 5(a) Agency Activities** 
EPA conducts the following activities in connection with the acquisition, analy sis, storage, and distribution of the required information. **Agency Activities** Observe initial performance tests and observe repeat performance tests if necessary

. Review notifications and reports, including performance test reports, and excess emissions reports, required to be submitted by industry

. Audit facility

records. Input, anal yz e, and maintain data in the Online Tracking Information System (OTI S).
**5(b) Collection Methodology and Management**  Following notification of startup, the reviewing authority could inspect the source to determine whether the pollution control devices are properl y installed and operational. Performance test reports are used b y the Agency to discern a source’s initial capability to compl y with the emission standard, and to note the operating conditions under which compliance was achieved. Data and records maintained by the respondents are tabulated and published for use in compliance and enforcement programs. The semiannual reports are used for problem identification, as a check on source operation and maintenance, and for compliance determinations.
In formation contained in the reports is entered into the OTI S, which is operated and

### 10

maintained by

EPA's O ffice of Compliance. OTIS is EPA ’ s database for the collection, maintenance, and retrieval of compliance data for approximately 125,000 industrial and government

- owned facilities. The EPA uses the OTI S for tracking air pollution compliance and enforcement b y local and state regulatory agencies, EPA regional offices and EPA headquarters. The EPA and its delegated Authorities can edit, store, retrieve and anal yz e the data.
The records required by

this regulation must be retained b y the owner or operator for five ye ars. **5(c) Small Entity Flexibility** A majority

of the affected facilities are large entities (e.g., large businesses). However, the impact on small businesses was taken into consideration during the development of the regulation. Due to technical considerations, involving the process operations and the ty pes of control equipment employed, the recordkeeping and reporting requirements are the same for both small and large enti ties. The Agency considers the requirements the minimum needed to ensure compliance and, therefore, cannot reduce them further for small entities. To the extent that larger businesses can use economies of scale to reduce their burden, the overall burden will be reduced. **5(d) Collection Schedule** The specific frequency

for each information collection activity within this request is shown below in Table 1: Annual Respondent Burden and Cost

- NESHAP for Petroleum Refineries (40 CFR P art 63, S ubpart CC) (Renewal)

. **6. Estimating the Burden and Cost of the Collection** Table 1 documents the computation of individual burdens for the recordkeeping and reporting requirements applicable to the industry for the subpart included in this I CR. The individual burdens are expressed under standardized headings believed to be consistent with the concept of burden under the Paperwork Reduction Act. Where appropriate, we have identified the specific tasks and major assumptions in the burden calculations. Responses to this information collection are mandatory

. The Agency

may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB Control Number. **6(a) Estimating Respondent Burden**
The av erage annual burden to industry over the next three years from these recordkeeping and reporting requirements is estimated to be 5 11 , 06 4 (Total Labor Hours from Table 1) . These hours are based on Agency studies and background documents from the development of the regulation, Agency

knowledge and experience with the NESHAP program, the previously

### 11

approved ICR, and any comments received. **6(b) Estimating Respondent Costs (i) Estimating Labor Costs** 
This I CR uses the following labor rates: Managerial $ 161.11 ($ 76.72 + 110%) Technical $126.27 ($60.13 + 110%) Installation, maintenance, and repair $59.03 ($28.11 + 110%) Plant operator $52.44 ($24.97 + 110%) Clerical $43.81 ($20.86 + 110%) These rates are from the United States Department of Labor, Bureau of Labor Statistics, May 2010, ”NAICS 324100

- Petroleum and Coal Products Manufacturing

. ” The rates have been increased b y 110 percent to account for the benefit packages available to tho se employed by private industry

.

**(ii) Estimating Capital/Startup and Operation and Maintenance Costs** The ty pe of industry

costs associated with the information collection activities in the subject standard are both labor costs, which are addressed elsewhere in this ICR, and the costs associ ated with purchasing equipment. The leak detection and repair program for heat exchange sy stems will require the purchase and installation of an air stripping column apparatus for sample collection and an FID analyzer to determine the concentration of air stripped compounds although samples may also be collected in canisters for shipment to anal ytical laboratories. The air

- stripping column is portable and may be used for multiple heat exchange s ys tems. **(iii) Ca pital/Startup vs. Operation and Maintenance (O&M) Costs**  The NESHAP subpart CC , as amended in October 2009, incorporates requirements for parametric monitoring of control devices that are included in other rules to which petroleum refineries are already subject. The onl y new equipment required in order complying with the recordkeeping and reporting requirements of this NESHAP is for heat exchange s ys tems and comprises an air

- stripping column for sample collection, associated equipment, and an FID anal yz er
. However, it is estimated that approximately 9 percent of refineries will already have this equipment. For the other 91 percent of facilities, the capital cost for the purchase and installation of this equipment is approximately $116,870. O&M costs are b ased on one mid

- point calibration every

month for 180 heat exchange s ys tems per year.

### 12 **Capital/Startup vs. Operation and Maintenance (O&M) Costs** (A) Continuous Monitoring Device (B)

Capital/Startup Cost for One Respondent (C)

Number of New Respondents (D)

Total Capital/Startup Cost, (B X C) (E)

Annual O&M Costs for One Respondent (F)

Number of Respondents with O&M (G)

Total O&M, (E X F)
Air stripping column and FID analyzer $116,870 1 39.5 a $ 16,30 3,365 NA NA $61,711

a Assumes 91% of 153 existing respondents need to purchase and install equipment. Additionally one new respondent will be subject to the standard in the next three years. Therefore, the total number of respondents is 153 x 91% + 1/3 = 139.5 

### The total capital/start

up costs for this I CR are $16,30 3,365 . This is the total of column D in the above table. In addition, the annualized capital/startup to the industry over the next three ye ars of the ICR is estimated to be $2,321,640 using capital discount rate of 7 percent over 10 ye ars. The total operation and maintenance (O&M) costs for this I CR are $61,711/y r. This is the total of column G.
The average annual cost for capital/startup and operation and maintenance costs to the industry over the next three years of the IC R is estimated to be $2,383,351. These are recordkeeping costs. **6(c) Estimating Agency Burden and Cost** The only costs to the Agency

are those labor costs associated with anal ys is of the reported information. EPA's overall compliance and enforcement program includes activities such as the examination of records maintained b y the respondents, periodic inspec tion of sources of emissions, and the publication and distribution of collected information. The average annual Agency cost during the three years of the ICR is estimated to be $ 322 , 542

. This cost is based on the average hourly labor rate as follows:
M anagerial $ 62.27 (GS

- 13, Step 5, $ 38.92 + 60%) Technical $ 46.21 (GS

- 12, Step 1, $ 28.88 + 60%) Clerical $ 25.01 (GS

- 6, Step 3, $ 15.63 + 60%) These rates are from the Office of Personnel Management (OPM) 2011 “ General Schedule ”, which excludes locality rates of pay . Details upon which this estimate is based appear below in Table 2: Average Annual EPA Burden and Cost

- NESHAP for Petroleum Refineries (40 CFR

### 13

P art 63, S ubpart CC ) (Renewal)

. **6(d) Estimating the Respondent Universe and Total Burden and Costs** 
Based on our research for this I CR, approximately 153 existing sources are currentl y subject to the standard. It is estimated that one additional source will become subject to the standard in the next three years. It is assumed that, on average, a refinery will reconstruct 10 percent of the existing storage vessels, process units subject to equipment leak provisions, and process vents. The number of respondents is calculated using the following table, which addresses the three ye ars covered b y thi s I CR. **Number of Respondents**

Respondents That Submit Reports Respondents That Do Not Submit Any Reports

Year (A) Number of Ne w Respondents 1 (B)

Number of Existing Respondents (C)

Number of Existing Respondents That Keep Records But Do Not Submit Reports (D) Number of Existing Respondents That Are Also New Respondents 1 (E)

Number of Respondents (E=A+B+C

- D)

1 15.3 153 0 15.3 153 2 15.3 153 0 15.3 153 3 16.3 15 3 0 15 .3 1 54 Average 15.6 153 0 1 5.3 153.3 1 New respondents include sources with constructed and reconstructed affected facilities. In this standard, existing respondents submit initial notifications. It is assumed that, on average, a refinery will reconstruct 10 percent of the existing storage vessels, process units subject to equipm ent leak provisions, and process vents. I t is estimated that one additional source will become subject to the regulation in the next three years. 

### To avoid double

- counting respo ndents column D is subtracted. As shown above, the average Number of Respondents over the three

- ye ar period of this ICR is 1 53.3

. The total number of annual responses per ye ar is calculated using the following table: **Total Annual Responses** (A) Information Collection Activity (B) Number of Respondents (C)

Number of Responses (D)

Number of Existing Respondents That Keep Records But Do Not Submit Reports (E)

Total Annual Responses E=(BxC)+D

### 14 **Total Annual Responses** (A) Information Collection Activity (B) Number of Respondents (C)

Number of Responses (D)

Number of Existing Respondents That Keep Records But Do Not Submit Reports (E)

Total Annual Responses E=(BxC)+D

Initial Notifications: Notification of reconstruction process vents 153.3 0.4 0 61.3 Notification of compliance status

- storage vessel 153.3 0.9 0 138.0 Notification of compliance status

- equipment leaks 153.3 1.1 0 168.6 Notification of compliance status

- process vents 153.3 0.9 0 138.0 Notification of compliance status

- heat exchange systems 153.3 1 0 153.3 Notification of performance test

- process vent control device 153.3 0.4 0 61.3 Notification of storage vessel inspection 153.3 0.9 0 138.0 Periodic Reports: Revie w of

startup, shutdown, malfunction reports 153.3 0 0 0.0 Semiannual parameter exceedance reports 153.3 2 0 306.6 Annual tank inspection failure reports 153.3 1 0 153.3 Semiannual compliance/LDAR reports 153.3 2 0 306.6 TO TAL 1 , 625 

### The number of Total Annual Responses is 1,625 rounded.
The total annual labor costs are $60, 288 , 291

. Details regarding these estimates can be found below in Table 1: Annual Respondent Burden and Cost

- NESHAP for Petroleum Refineries (40 CFR P art 63, S ubpart CC) (Renewal)

. **6(e) Bottom Line Burden Hours Burden Hours and Cost Tables**  The detailed bottom line burden hours and cost calculations for the respondents and the Agency are shown below in Tables 1 and 2, respectively , and summarized below.

### 15 **(i) Respondent Tally**
The total annual labor hours are 51 1 , 06 4

. Details regarding these estimates may be found below in Table 1: Annual Respondent Burden and Cost

- NESHAP for Petroleum Refineries (40 CFR P art 63, S ubpart CC) (Renewal)

. Furthermore, the annual public reporting and recordkeeping burden for this colle ction of information is estimated to average 3 1 5 hours per response. The total annual capital/startup and O&M costs to the regulated entity are $2,383,351. The cost calculations are detailed in Section 6(b)(iii) Capital/Startup vs. Operation and Maintenance (O&M) Costs.

**(ii) The Agency Tally** The average annual Agency burden and cost over next three years is estimated to be 7,158 labor hours at a cost of $ 322 , 542 . See below Table 2: Average Annual EPA Burden and Cost

- NESHAP for Petroleum Refineries (40 CFR P art 63, S ubpart CC ) (Renewal)

. **6(f) Reasons for Change in Burden**
The increase in labor burden and cost to industry compared to the most recently approved ICR is due to several considerations. First, burden from the recent ICR amendments, including the monthly

sampling program and reporting and recordkeeping requirements for heat exchange sy stems, w ere incorporated into th e overall estimate for this renewal ICR. This resulted in an increase in labor hours , as well as capital/st artup costs and operati o n and maintenance (O&M) costs. Second, labor rates were updated to be consistent with the most recent available data from the Bureau of Labor Statistics

. There is also an increase in burden hours and costs to the Agency

. Similarly, this is due to a program change, as well as the most update d labor rate s. The combining of the previous I CR with EPA I CR number 2334.02, has attributed also to the increase in burden hours and costs. **6(g) Burden Statement** The annual public reporting and recordkeeping burden for this collection of information is estimated to average 3 1 5 hours per response. Burden means the total time, effort, or financial resources expended b y persons to generate, maintain, retain, or discl ose or provide informati on to or for a Federal agency. This includes the time needed to review instructions; to develop, acquire, install, and utilize technology and s ys tems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; to adjust the existing way s to compl y with any previously applicable instructions

### 16

and requirements; to train personnel to be able to respond to a collection of information; to search d ata sources; to complete and review the collection of information; and to transmit or otherwise disclose the information. An agency

may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMB Control Number. The OMB Control Numbers for EPA ’ s regulations are listed at 40 CFR part 9 and 48 CFR chapter 15. To comment on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including the use of automated collection techniques, EPA has established a public docket for this I CR under Docket ID Number EPA

- HQ

- OECA

- 2011

- 0234. An electronic version of the public docket is available at http://www.regulations.gov/ which may be used to obtain a copy

of the draft collection of information, submit or view public comments, access the index listing of the contents of the docket, and to access those documents in the public docket that are avail able electronically . When in the sy stem , select “search,” then key in the docket ID number identified in this document. The documents are also available for public viewing at the Enforcement and Compliance Docket and Information Center in the EPA Docket Center (EPA/DC), EPA West, Room 3334, 1301 Constitution Avenue, NW, Washington, DC. The EPA Docket Center Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holiday s. The telephone number for the Reading Room is (202) 566

- 1744, and the telephone number for the docket center is (202) 566

- 17 52 . Also, you can send comments to the Office of In formation and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, DC 20503, Attention: De sk Officer for EPA. Please include the EPA Docket ID Number EPA

- HQ

- OECA

- 20 11

- 0 234 and OMB Control Number 2060

- 0340 in any correspondence. **Part B of the Supporting Statement** This part is not applicable because no statistical methods were used in colle cting this information.

### Table 1. Annual Respondent Burden and **C ost** 
**- NESHAP for Petroleum Refineries (40 CFR**  **P art 63,**  **S ubpart CC)**  **(Renewal)**

**Burden item (A)**  **Person**
  ** hours** **per occur**  **** **rence (B)** 

**No. of occur**  **rences per**  **respondent per year**  **(C)**

**Person**
  ** hours per** **respondent per year**  **(A x B) (D)** 

**Respondent per year**  **a (E)** 

**Technical person**  **** **hours per year**  **(C x D) (F)** 

**Installation, maintenance**  **and repair person**  **** **hours per year**  **(C x D) (G)** 

**Plant o**  **perator person**  **** **hours per year**  **(C x D) (**  **H )** 

**Management person**  **- hours**  **per year (E**  **x 0.05)**  **( I**  **)**

**Clerical person**  **** **hours per year**  **(E x**  **0.1) (** **J )** 

**Cost,$ b** 

1. Applications N/A 2. Survey and Studies N/A 3. Acquisition, Installation, and Utilization of Technology and Systems c Technical 32 1 32 153.3 4,905.6 $ 619,444.83 Management 2 1 2 153.3 306 .6 $49,396.94 4. Reporting Requirements A. Read instructions and planning c , d Initial: i. General/applicability 20 1 20 15.3 306 15.3 30.6 $42,445.02 ii. Storage vessels 20 1 20 15.3 306 15.3 30.6 $42,445.02 iii. Process units

– LDAR 20 1 20 15.3 306 15.3 30.6 $42,445.02 iv. Process vents 20 1 20 15.3 306 15.3 30.6 $42,445.02 Periodic: i. General/applicability 4 2 8 153.3 1 , 226.4 61.32 122.64 $170,112.96 ii. Storage vessels 1 2 2 153.3 306.6 15.33 30.66 $42,528.24 iii. Process units

– LDAR 2 2 4 153.3 613.2 30.66 61.32 $85,056.48 iv. Process vents 2 2 4 153.3 613.2 30.66 61.32 $85,056.48 v. Heat exchange systems 2 1 2 153.3 306.6 15.33 30.66 $42,528.24 B. Required activities c , d Initial: i. General: applicability 10 1 10 153.3 1 , 533 76.65 153.3 $212,641.20 ii. Storage vessels 88 0.9 79

. 2 153.3 12 , 141.36 607.0 7 1 , 214.14 $1,684,118.33

### 18

18 **Burden item (A)**  **Person**
  ** hours** **per occur**  **** **rence (B)** 

**No. of occur**  **rences per**  **respondent per year**  **(C)**

**Person**
  ** hours per** **respondent per year**  **(A x B) (D)** 

**Respondent per year**  **a (E)** 

**Technical person**  **** **hours per year**  **(C x D) (F)** 

**Installation, maintenance**  **and repair person**  **** **hours per year**  **(C x D) (G)** 

**Plant o**  **perator person**  **** **hours per year**  **(C x D) (**  **H )** 

**Management person**  **- hours**  **per year (E**  **x 0.05)**  **( I**  **)**

**Clerical person**  **** **hours per year**  **(E x**  **0.1) (** **J )** 

**Cost,$ b** 

iii. Process units

- LDAR 8 1.1 8.8 153.3 1 , 349.04 67.45 134.9 $187,124.26 iv. Process vents

- initial performance test 11 0.2 2.2 153.3 337.26 16.86 33.7 3 $46,781.06 v. Process vents

- repeat performance test 11 0.1 11 153.3 168.63 8.43 16.8 6 $23,390.53 Periodic : i. General/applicability 3 2 6 153.3 919.8 45.99 91.98 $127,584.72 ii. Storage vessels 4 9 36 153.3 5 , 518.8 275.94 551.88 $765,508.33 iii. Process units

- LDAR 1 11 134 153.3 1 , 686.3 84.3 2 168.63 $233,905.32 iv. Process vents 2 24 48 153.3 7 , 358.4 367.92 735.84 $1,020,677.78 v. Heat exchange system s - sampling analysis e Technical 3.18 12 38.16 153.3 5 , 849.9 3 $738,687.96 Pla nt o perator 9.53 12 114.36 153.3 17 , 531.39 $919,293.39 vi. Heat exchange system s - triggered monitoring of leak f Technical 1 2 2 153.3 306.6 $38,715.30 Pl ant o perator 3 2 6 153.3 919.8 $48,231.55 vii. Heat exchange system s

- leak repair g 40 0.15 40 153.3 919.8 $ 54,296.71
C. Create information See 4B D. Gather existing i nformation See 4B E. Write report c Startup, shutdown and malfunction plan 40 1 40 0 0 0 0 $0 Notification of compliance status i. Storage vessels 1 0.9 0.9 153.3 137.97 6.9 13.8 $19,137.71 ii. Process units

- LDAR 4 1.1 4.4 153.3 674.52 33.73 67.45 $93,562.13 iii. Process vents 1 0.9 0.9 153.3 137.97 6.9 13.8 $19,137.71

### 19

19 **Burden item (A)**  **Person**
  ** hours** **per occur**  **** **rence (B)** 

**No. of occur**  **rences per**  **respondent per year**  **(C)**

**Person**
  ** hours per** **respondent per year**  **(A x B) (D)** 

**Respondent per year**  **a (E)** 

**Technical person**  **** **hours per year**  **(C x D) (F)** 

**Installation, maintenance**  **and repair person**  **** **hours per year**  **(C x D) (G)** 

**Plant o**  **perator person**  **** **hours per year**  **(C x D) (**  **H )** 

**Management person**  **- hours**  **per year (E**  **x 0.05)**  **( I**  **)**

**Clerical person**  **** **hours per year**  **(E x**  **0.1) (** **J )** 

**Cost,$ b** 

i v. Heat exchange systems h 1 1 1 153.3 153.3 7.67 15.33 $21,264.12 Notification of storage vessel inspection 1 0.9 0.9 153.3 137.97 6.9 13.8 $19,137.71 Notification of reconstruction

process vent control device 4 0.4 1.6 153.3 245.28 12.26 24.53 $34,022.59 Notification of performance test c See 4B Startup, shutdown and malfunction reports c NA Semiannual compliance reports: i , j i. General 18 2 36 153.3 5,518.8 275.94 551.88 $765,508.33 ii. Storage vessels 1 18 18 153.3 2,759.4 137.97 275.94 $382,754.17 iii. Storage vessels seal gap failure 3 2 6 153.3 919.8 45.99 91.98 $127,584.72 iv. Process units

- LDAR 3 22 66 153.3 10,117.8 505.89 1,011.78 $1,403,431.94 v. Process vents 1.5 4 6 153.3 919.8 45.99 91.98 $127,584.72 vi. Heat exchange systems k 2 2 4 153.3 613.2 30.66 61.32 $85,056.48 Reporting Subtotal 97,022.9 $ 9 , 794 , 201
5. Recordkeeping Requirements

A. Read instructions See 4A B. Plan activities c See 4A C. Implement activities c See 4B D. Develop record system l N A Initial: i. Storage vessels 2 0.9 1.8 153.3 275.94 13.80 27.59 $ 38,275.42

### 20

20 **Burden item (A)**  **Person**
  ** hours** **per occur**  **** **rence (B)** 

**No. of occur**  **rences per**  **respondent per year**  **(C)**

**Person**
  ** hours per** **respondent per year**  **(A x B) (D)** 

**Respondent per year**  **a (E)** 

**Technical person**  **** **hours per year**  **(C x D) (F)** 

**Installation, maintenance**  **and repair person**  **** **hours per year**  **(C x D) (G)** 

**Plant o**  **perator person**  **** **hours per year**  **(C x D) (**  **H )** 

**Management person**  **- hours**  **per year (E**  **x 0.05)**  **( I**  **)**

**Clerical person**  **** **hours per year**  **(E x**  **0.1) (** **J )** 

**Cost,$ b** 

ii. Process units

– LDAR 75 1.1 82.5 153.3 12,647.25 632.36 1,264.73 $ 1,754,289.93 iii. Process vents 2 0.9 1.8 153.3 275.94 13.8 27.59 $ 38,275.42 Periodic : i. Storage vessels 2 18 36 153.3 5,518.8 275.94 551.88 $ 765,508.33 ii. Process units

- LDAR 75 11 825 153.3 126,472.5 6,323.63 12,647.25 $ 17,542,899.30 iii. Process vents 2 9 18 153.3 2,759.4 137.97 275.94 $ 382,754.17 iv. Heat exchange systems m Technical 1 12 12 153.3 1,839.6 $ 232,291.81 Plant Operator 1 12 12 153.3 1,839.6 $ 96,463.11 E. Time to ent er information and transmit it n Initial: i. Storage vessels 6 0.9 5.4 153.3 827.82 41.39 82.78 $114,826.25 ii. Process units

- LDAR 99 1.1 108.9 153.3 16,694.37 834.72 1,669.44 $2,315,662.71 iii. Process vents 12 0.2 2.4 153.3 367.92 18.4 36.79 $51,033.89 iv. Heat exchange systems 1 2 2 153.3 306.6 15.33 30.66 $42,528.24 Periodic: i. Storage vessels 3.5 18 63.0 153.3 9,657.9 482.9 965.79 $1,339,639.58 ii. Process units

– LDAR 99 11 1,089 153.3 166,943.7 8,347.19 16,694.37 $23,156,627.07 iii. Process vents 15 4 60.0 153.3 9,198 459.9 919.8 $1,275,847.22 F. Time to train personnel o Initial: i. Storage vessels 1 0.9 0.9 153.3 137.97 6.9 13.8 $19,137.71 ii. Process units

- LDAR 1 1.1 1.1 153.3 168.63 8.43 16.86 $23,390.53 iii. Process vents 1 0.4 0.4 153.3 61.32 3.07 6.13 $8,505.65 iv. Heat exchange systems p 20 1 20 153.3 3,066 153.3 306.6 $425,282.41 Periodic: i. Storage vessels NA ii. Process units

- LDAR 0.5 11 5.5 153.3 843.15 42.16 84.32 $116,952.66 iii. Process vents 1 4 4 153.3 613.2 30.66 61.32 $85,056.48 Recordkeeping Subtotal 414,041 .1 $ 49,825,24 8

### 21

21 **Burden item (A)**  **Person**
  ** hours** **per occur**  **** **rence (B)** 

**No. of occur**  **rences per**  **respondent per year**  **(C)**

**Person**
  ** hours per** **respondent per year**  **(A x B) (D)** 

**Respondent per year**  **a (E)** 

**Technical person**  **** **hours per year**  **(C x D) (F)** 

**Installation, maintenance**  **and repair person**  **** **hours per year**  **(C x D) (G)** 

**Plant o**  **perator person**  **** **hours per year**  **(C x D) (**  **H )** 

**Management person**  **- hours**  **per year (E**  **x 0.05)**  **( I**  **)**

**Clerical person**  **** **hours per year**  **(E x**  **0.1) (** **J )** 

**Cost,$ b** 

TOTAL LABOR BURDEN AND COST (Rounded) 511,06 4 $ 60,288,291 Annualized cost of capital q $2,321,640 Operation and maintenance (O&M) r $61,711 TOTAL ANNUAL COST (Labor, Annualized Capital , O&M) $62, 671,642
**Assu mptions:** 

**a** There are 153 existing petroleum refineries in the U.S., and one new refinery is expected during the next 3 years , yielding an annual average of 153.3 respondents over the next three years. W e estimate that all existing refineries would have to reconstruct 10 percent of existing affected facility each year to accommodate increased in refinery production. We have assumed that a refinery would have the following affected facilities: 9 storage vessels, 11 process units which are subject to leak detection and repair (LDAR) provisions, 9 process vents for which it would be required to do monitoring, recordkeepi ng and reporting, and 3 heat exchange systems which are subject to a monthly sampling program and a recordkeeping and reporting requirements to ensure compliance with the program. b This ICR uses the following labor rates: $ 161.11 per hour for executive , administrative , and managerial labor; $43.81 per hour for clerical labor; $ 126.27 per hour for technical labor ; $59.03 per hour for installation, maintenance, and repair; and $52.44 per hour for plant operators . These rates are from the United States Department of Labor, Bureau of Labor Statistics, May 2010 , ”NAICS 324100

- Petroleum and Coal Products Manufacturing

. ” The rates have been increased by 110 percent to account for the benefit packages available to those employed by private industry
c We hav e assumed that the initial notifications and periodic reporting required by this rule for existing sources are already accounted for in existing NSPS and NESHAP regulations for equipment leaks, wastewater and storage tanks. However, this ICR addresses the additional burden for industry associated with addressing the rule requirements in the compliance report for all respondents. Startup, shutdown and malfunction reports are included with the semiannual repor ts. d We have assumed that all existing respondents over 3

- year term of ICR have complied with the rule initial monitoring, recordkeeping and reporting requirements on their existing units including: initial notifications; the design analysis and establishing operating parameters for storage vess els , LDAR initial requirements, and initial performance test for process vents routed to a control device (4 of 9 process vents); and development of startup and malfunction plan and record system addressing each unit. However, respondents would have to comp ly with initial rule requirements for reconstructed units which are estimated to be 10 percent of all units (i.e., 0.9 storag e vessels, 1.1 process units and 0.4 process vent control devices).
e EP A estimates that 486 of 540 heat exchange systems at 153 existing refineries will need to implement the new heat exchange system monitoring requirements and one new refinery with an estimated 4 heat exchange systems will become subject to the Subpart CC rule during the 3

- year clearance period of this ICR. Th erefore, the annual average number of heat exchange systems per refinery is 3.18 (486 + 4 = 490 heat exchange systems/154 refineries). Labor and costs ba sed on estimates from EPA MACT floor cost analysis. Labor costs for setup of portable air stripping column and sampling/analysis for one heat exchange system based on 1 labor hour for engineer and 3 labor hours for operator. Assume 3.18 towers per refinery and event occurs 12 times per year. f Labor costs for additional sampling and analysis triggered by leak based on 1 hour for engineer and 3 labor hours for an operator for 1 event per year for 2 heat exchangers per refinery.

### 22

22 g Repair costs based on 40 labor hours for 1 repair event per year for 15 percent of heat exchangers. h Assume each existing refinery must submit notification of compliance status for heat exchange systems. i The rule requires that sources meet specific periodic requirements including: monitoring of storage vessels annually, LDAR monitoring of process units daily, and monthly monitoring of process vents, recording of process parameters and monitoring results, and submittal of periodic semiannual com pliance reports addressing each affected facility and of performance t est results. The startup, shutdown and malfunction reports are included in the next periodic report. j Notifications related to construction/reconstruction and periodic reporting of existing sources are accounted for in existing NSPS and NESHAP regulations for equipment leaks, wastewater and storage tank. k Assume 2 hours per occurrence at 2 times per year. l We have assumed that sources already have the record system in place to monitor each existing operations, however, it will incurred in some burden for reconstructed af fected facilities.
m Assume 24 labor hours per month per refinery for recordkeeping requirements.
n We have include d the associ ated with sources recording data and transmitting it to develop initial and semiannual reports. We h ave assumed that it takes respondents approximate one 3.5 hours (2 hrs of total is to transmit data) at each of the 9 storage vessels, 77 hours for equipment leaks (LDAR, 75 of total is to transmit data) at each of the 11 units, and 15 hours (based on the assumption that it takes 5 minutes at 350 days a year per control device to record data) fo r process vents at each of the 2 control devices to record and transmit data periodically.
o We have assumed that existing sources would be providing an initial training to employees associated with new affected facilitie s, and that there will be periodic refresher training. p Assume training of 2 labor hours per ye ar for 10 operators per facility. q Based on a total capital investment of $16.3 million and a capital recovery factor of 0.1424 (10

- year life at 7 percent annual interest).
r Operation and maintenance costs based on one mid

- point calibration of sampling equipment prior to each sampling event (12 times/yr) at 0.25 hr by one engineer ($114.28/yr) for annual average of 180 heat exchange systems (540 heat exchange systems/3 = 180). N/A Not applicable.

### 23

23 **Table 2. Average**  **Annual EPA**  **Burden and Cost** 

**- NESHAP for Petroleum Refineries (40 CFR**  **P art 63,**  **S ubpart CC)**  **(Renewal)**

**Activity (A)**  **Hours per occurrence**  **(B)**

**Occurrences per plant per**  **year (C)** 

**Hours per plant**  **per year (A**  **x B)**  **(D)**

**Plants per**  **year a**  **(E)**

**Technical person**  **- hours**  **per year (E**  **= C**  **x D)**  **(F)**

**Managem ent**  **person -**  **hours per year**  **( F =**  **E x**  **0.05) (G)** 

**Clerical person**  **- hours**  **per year (**  **G = E**  **x 0.1)**  **(H)**

**Cost, $ b** 

1. Initial Notifications: c

- Notification of reconstruction

-process vents d 1 0.4 0.4 153.3 61.32 3.07 6.13 3,177.75

- Notification of compliance status

- storage vessel e 1 0.9 0.9 153.3 137.97 6.90 13.80 7,149.94

- Notification of compliance status

- equipment leaks e 1 1.1 1.1 153.3 168.63 8.43 16.86 8,738.81

- Notification of compliance status

- process vents e 1 0.9 0.9 153.3 137.97 6.90 13.80 7,149.94

- Notification of compliance status

- heat exchange systems e 2 1 2 153.3 306.60 15.33 30.66 15,888.75

- Notification of performance test

- process vent control device e 1 0.4 0.4 153.3 61.32 3.07 6.13 3,177.75

- Notification of storage vessel inspection 1 0.9 0.9 153.3 137.97 6.90 13.80 7,149.94 2. Periodic Reports: f

- Revie w of startup, shutdown, ma lfunction reports N/A

- Semiannual parameter exceedance reports 4 2 8 153.3 1,226.40 61.32 122.64 63,554.99

- Annual tank inspection failure reports 4 1 4 153.3 613.20 30.66 61.32 31,777.50

- Semiannual compliance/LDAR reports 10 2 20 153.3 3,066.00 153.30 306.60 158,887.48

- Semiannual compliance/heat exchange systems 1 2 2 153.3 306.60 15.33 30.66 15,888.75 Subtotal 6,223.98 311.20 622.40 322,541.58

### 24

24 TO TAL 7,158 $ 322 , 542

**Assu mptions:** 
a We have assumed that there are 153 existing petroleum refineries plus one new refinery which are respondents over the 3

- year term of the ICR , yielding an average of 153.3 respondents per year . We have further assumed that a refinery ha s the following aff ected facilities: 9 storage vessels ; 11 process units which are subject to leak detection and repair (LDAR) provisions ; 9 process vents for which it would be required to do monitoring, recordkeeping and reporting ; and 3 heat exchange systems which are subject to a monthly sampling program for VOC leak detection and repair, as well as recordkeeping and reporting requirements to ensure compliance with the program

. b This cost is based on the following labor rates: Managerial rate of $ 62.27 (GS

- 13, Step 5, $ 38.92 + 60%), Technical rate of $ 46.21 (GS

- 12, Step 1, $ 28.88 + 60%), and Clerical rate of $ 25.01 (GS

- 6, Step 3, $ 15.63 + 60%). These rates are from the Office of Personnel Management (OPM) A20 11 General Schedule @ , which excludes locality rates of pay.
c We have assumed that all existing respondents over the 3

- year term of the ICR have complied with the rule ’s initial monitoring, recordkeeping and reporting requirements for their existing units , including: initial notifications; the design analysis and establishing operating parameters for storage vessels, LDAR initia l requirements, and initial performance test for process vents routed to a control device (4 of 9 process vents); and developme nt of record system. However, we have assumed that 10 percent of respondents ( 15.3 ) would have to comply with initial rule requirements for reconstructed units. d The notification of reconstruction is only required for process v ents controls. We hav e assumed two process vent controls per respondent, and that 10 percent of process vent will be reconstructed and tested. Further, we assumed two notifications per test.
e The notification of compliance status would include performance test results, as required by the general provisions. f The rule requires that sources semiannual compliance reports addressing each affected facility subject to the rule. The startup, shutdown and malfunction reports are to be submitted with the next semiannual reports N/A Not applicable