Document ID: EPA-HQ-OECA-2008-0426-0002
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2008-06-05T04:00Z

SUPPORTING STATEMENT

NESHAP FOR THE PORTLAND CEMENT MANUFACTURING INDUSTRY (40 CFR PART 63,
SUBPART LLL) (FINAL RULE)

PART A

1.0  Identification of the Information Collection

(a) Title and Number of the Information Collection.

This is a revision to the existing approved information collection
request (ICR).  The Office of Management and Budget (OMB) has previously
approved the information collection requirements in the existing rule
(40 CFR part 63, subpart LLL) under the provisions of the Paperwork
Reduction Act, 44 U.S.C. 3501 et seq. and has assigned OMB control
number 2060-0416.  The Environmental Protection Agency (EPA) tracking
number for this request is ICR number1801.06.

(b) Short Characterization.

Potential respondents are owners or operators of portland cement
manufacturing facilities subject to the maximum achievable control
technology (MACT) standards for new, existing or reconstructed kiln and
in-line kiln/raw mill at these facilities, except for kilns and in-line
kiln/raw mills that burn hazardous waste and are subject to 40 CFR part
63, subpart EEE or that burn municipal solid waste and are subject to 40
CFR part 60, subpart Cb or Ea.  Emission limits for mercury from new
cement kilns are established under the final amendments. A mercury
performance test is required to demonstrate compliance with the emission
limits for mercury. The final amendments establish emission limits for
total hydrocarbons (THC) for new kilns and revise the emission limits
for new greenfield kilns.  To demonstrate compliance with the THC
limits, owners or operators of new kilns would be required to
continuously monitor THC emissions. To ensure proper combustion of
organic HAP from existing kilns, owners or operators of portland cement
manufacturing plants must implement good combustion practices (GCP)
designed to minimize THC from fuel combustion. Respondents are required
to maintain additional records to demonstrate compliance with THC
limits. The final amendments also require that records be kept of the
amount of cement kiln dust (CKD) that is removed from existing and new
kiln systems and either disposed of as solid waste or otherwise recycled
for a beneficial use outside of the kiln system. These requirements are
listed in Attachment 1. 

2.  Need For and Use of the Collection

(a)	Need/Authority for the Collection.

Section 112 of the Clean Air Act (42 U.S.C. 7414 et seq.) (CAA) requires
that EPA establish MACT standards for new or existing major or area
sources according to the requirements in section 112(d). Certain records
and reports are necessary for the Administrator to:  (1) confirm the
compliance status of major sources, identify any non-major sources not
subject to the standards, and identify new or reconstructed sources
subject to the standards; and (2) ensure that the MACT standards are
being achieved on a continuous basis.  These recordkeeping and reporting
requirements are specifically authorized by section 114 of the CAA and
set out in the General Provisions for national emission standards for
hazardous air pollutants (NESHAP) in 40 CFR part 63, subpart A.

(b)	Use/Users of the Data.

The additional information will be used by Agency enforcement personnel
to ensure that the emission limitations for new kilns are being achieved
and that existing kilns are being operated properly.  Based on review of
the recorded information at the site and the reported information, EPA
can identify facilities that may not be in compliance and decide which
plants, records, or processes should be inspected.

3.	Nonduplication, Consultations, and Other Collection Criteria

(a)	Nonduplication.

No other regulation currently requires the same information requested
under this ICR from owners or operators of non-hazardous waste portland
cement kilns. In the event that certain reports required by State or
local agencies may duplicate information required by the final
amendments, a copy of the report submitted to the State or local agency
can be provided to the Administrator in lieu of the information that
would be required in the semi-annual compliance report. Therefore, no
duplication exists.

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

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

(c)	Consultations.

The final amendments were developed in consultation with State and local
agencies, individual portland cement manufacturing plants and industry
trade associations, as well as environmental groups. We specifically
consulted with stakeholders on some of the ICR requirements of these
final amendments.  Other requirements in the final amendments were
contained in the proposed amendments or exist in the current rule. 
Participants in the development process for the current rule included
STAPPA/ALAPCO, the Portland Cement Association (PCA), the American
Portland Cement Alliance (APCA), the Small Company MACT Coalition, the
Sierra Club, and Earth Justice.  Several meetings with industry
representatives were held in the period leading to proposal and the
final amendments, and public comments received from trade associations,
cement companies, State and local regulatory agencies, and environmental
groups were considered in the development of the current rule. Public
comments received following proposal were considered in developing the
final amendments regarding monitoring, recordkeeping, or reporting
procedures.  Several of the non-EPA persons consulted prior to
promulgation of the final amendments are identified in Table 1.

TABLE 1.  PERSONS CONSULTED ON THE INFORMATION COLLECTION ACTIVITIES IN
THE CURRENT RULE

Contact	Organization	Telephone Number

Ann Dougherty	Portland Cement Association	(847) 966-6200

Andy O'Hare	American Portland Cement Alliance	(202) 408-9494

Neal J. Cabral	Small Cement Company MACT Coalition	(804) 775-1070

Jack Lauber	New York State DEC/Division of Air Resources	(518) 457-7230

Bruce Gaylord	Air Pollution Control District of Jefferson County
(Kentucky)	(502) 574-6000

James Pew	Sierra Club	(202) 667-4500

	

(d)	Effects of Less Frequent Collection.

If the relevant information were collected less frequently, EPA would
not be reasonably assured that a plant is in compliance with the
standards.

(e)	General Guidelines. 

None of the guidelines in 5 CFR 1320.6 are being exceeded.

(f)	Confidentiality.

All 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 (see 40 CFR 2; 41 FR 36902,
September 1, 1976; amended by 43 FR 39999, September 28, 1978; 43 FR
42251, September 28, 1978; 44 FR 17674, March 23, 1979).

(g)  Sensitive Questions.  

This section is not applicable because this ICR does not involve matters
of a sensitive nature.

4.	The Respondents and the Information Requested

(a)	Respondents/NAICS Codes.

In the final amendments, respondents are 94 owners or operators of
existing portland cement manufacturing plants and any new portland
cement plants.  It is estimated that twenty new kilns will be built over
the 5 year-period after promulgation of the amendments. All respondents
will be subject to monitoring, recordkeeping, and reporting
requirements.  The NAICS code for this industry is 327310, Cement
Manufacturing. 

(b) Information Requested.

(i) Data Items, Including Recordkeeping Requirements.  Attachment 1,
Source Data and Information Requirements, summarizes the final
recordkeeping and reporting requirements.

(ii) Respondent Activities.  The respondent activities required by the
final amendments are identified in Table 2 and introduced in section
6(a).

5.	The Information Collected(Agency Activities, Collection Methodology,
and Information Management

(a)	Agency Activities.

A list of Agency activities is provided in Table 3 and introduced in
section 6(c).

(b)	Collection Methodology and Management.

This is not relevant to this information collection request.

(c)	Small Entity Flexibility.

A small entity for this industry is defined by the Small Business
Administration as a firm having no more than 750 employees.  Of the 35
companies (PCA”U.S. and Canadian Portland Cement Industry:  Plant
Information Summary,” 2004) that would be subject to the final
amendments, six companies are considered small entities. However, the
amendments are unlikely to impose any significant additional regulatory
costs on existing small entities because the only cost implication for
existing small entities is the requirement to keep records of CKD
wastage. New kilns will be required to continuously monitor THC
emissions although this cost is not considered significant and is not
likely to have any appreciable effect on the cost of goods produced. 
New kilns will also be required to conduct an initial and periodic
performance tests to demonstrate compliance with the mercury emission
limits. Again, the cost for this test is not significant and is unlikely
to have any appreciable effect on the cost of cement produced. The
amendments are also structured to reduce the amount of monitoring and
performance testing that would be required by allowing the owner or
operator to conduct continuous monitoring for THC instead of monitoring
or testing for all organic HAPs. Monitoring to assure compliance with
the THC emission limit will be done using a THC CEM. The amendments also
allow performance testing for mercury by either EPA Method 29 or ASTM
D6784-02 (the Ontario Hydro Method).

(d) Collection Schedule.

The specific collection frequency for each information collection
activity within this request is shown in Table 2.

6.  Estimating the Burden and Cost of the Collection

(a)	Estimating Respondent Burden.

The annual burden estimates for the additional recordkeeping and
reporting requirements in the final amendments are shown in Table 2. 
These numbers were derived from estimates based on EPA’s experience
with other standards.

(b)	 Estimating Respondent Costs.

The information collection activities for the final amendments are
presented in Table 2.  Because much of the data are already collected by
respondents or required by existing law, minimal respondent development
costs are associated with the information collection activities for the
final amendments.

(i)  Estimating Labor Costs.  Technical, management, and clerical
average hourly labor rates and associated costs are based on Bureau of
Labor Statistics (BLS) data. Technical, management, and clerical average
hourly rates for private workers were taken from the United States
Department of Labor, Bureau of Labor Statistics, June 2006, “Table 2.
Civilian Workers, by occupational and industry group” available at  
HYPERLINK "http://www.bls.gov/news.release/ecec.to2.htm" 
http://www.bls.gov/news.release/ecec.to2.htm . Wages for occupational
groups are used as the basis for the labor rates with a total
compensation of $42.68/hour for technical, $49.62/hour for managerial,
and $21.33/hour for clerical. These rates represent salaries plus fringe
benefits and do not include the cost of overhead. An overhead rate of
110 percent is used to account for these costs. The fully-burdened
hourly wage rates used to represent respondent labor costs are:
$89.63/hour for technical, $104.21/hour for managerial, and $44.79/hour
for clerical.  These rates represent salaries plus fringe benefits and
the cost of overhead and are used to account for the recordkeeping and
reporting costs of the proposed amendments. 

(ii)  Estimating Capital and Operations and Maintenance (O&M) Costs.  It
is assumed that a THC CEM will be installed on each new kiln. The
capital cost and the O&M cost of the THC monitor were estimated using an
updated Version 3 of EPA’s Continuous Emission Monitoring System Cost
Model.

(iii) Capital/Startup vs. O&M Costs.  The cost of a THC monitor for a
new kiln is $139,800. O&M costs for the monitor are $22,073/kiln/yr.

(iv) Annualizing Capital Costs.  For a THC monitor on a new kiln, the
annualized capital cost is between $11,713 and $15,352/kiln utilizing
capital discount rates of 3% and 7%, respectively. For purposes of
reporting annualized costs for this ICR, the 7% capital discount rate is
used.

(c)  Estimating Agency Burden and Cost.

Because the information collection requirements were developed as an
incidental part of standards development, no costs can be attributed to
the development of the information collection requirements.  Because
reporting and recordkeeping requirements on the part of the respondents
are required under the NESHAP General Provisions, no operational costs
will be incurred by the Federal Government.  Publication and
distribution of the information are part of the Compliance Data System,
with the result that no Federal costs can be directly attributed to the
ICR.  Examination of records to be maintained by the respondents will
occur incidentally as part of the periodic inspection of sources that is
part of EPA's overall compliance and enforcement program, and,
therefore, is not attributable to the ICR.  The only costs that the
Federal government will incur are user costs associated with the
analysis of the reported information, as presented in Table 3.

The Agency labor rates are from the Office of Personnel Management (OPM)
2003 General Schedule which excludes locality rates of pay.  These rates
can be obtained from Salary Table 2006-GS available on the OPM website,
http://www.opm.gov/oca/06tables/pdf/gs_h.pdf.  The government employee
labor rates are $14.95/hour for clerical (GS-7, Step 1), $31.54 for
technical (GS-13, Step 1), and $43.85/hr for management (GS-15, Step 1).
 These rates represent salaries plus fringe benefits and do not include
the cost of overhead.  An overhead rate of 110 percent is used to
account for these costs.  The fully-burdened wage rates used to
represent Agency labor costs are:  clerical at $31.40; technical at
$66.23, and management at $92.09.

(d)  Estimating the Respondent Universe and Total Burden and Costs.

The EPA estimates that 94 existing plants will be subject to the final
amendments and will maintain records of the amount of CKD recycling and
wastage. Therefore, the average annual number of existing respondents is
31.3 (94 total respondents/3). It is estimated that 4 new kilns/year
will come online during the 3 year clearance period and will be subject
to the amendments.  All new kilns will install the required monitoring
equipment, conduct initial performance tests, provide notification of
performance tests and keep records, including records of CKD
recycled/wasted, during the 3-year clearance period of this ICR. The
total number of existing and new respondents is 35.3.

The total annual number of responses for the existing rule is 418.   The
number of increased responses for the final amendments is 51.3.  This
number is calculated by multiplying the number of respondents/yr subject
to notification requirements (Column D, Table 2, Burden item 4.E) by the
number of occurrences/respondent (Column B, Table 2, Burden item 4.E)
and summing the products.  Thus, the total number of responses for the
rule is 469.3 (418+ 51.3). 

(e)	Bottom Line Burden Hours and Cost Tables

(i)  Respondent tally.  The bottom line respondent burden hours and
costs, presented in Table 2, are calculated by adding person-hours per
year down each column for technical, managerial, and clerical staff, and
by adding down the cost column.  The average annual burden for the
monitoring, recordkeeping, and reporting requirements in the existing
rule is 17,526 person hours with an annualized capital and O&M costs of
$792,000.  The increased average annual burden for the proposed
amendments is 4,159 person hours with an annual average cost of $679,105
for technical, management, and clerical hours with annualized
capital/startup cost of $161,672 for a total cost of $840,777.  The
total annual average burden for the rule, including the final amendments
will be 21,685 (17,526+4,159) person hours with a total annualized
capital/startup cost of $953,672 ($792,000+$161,672). 

(ii)  The Agency tally.  The average annual Federal Government cost for
the existing rule is $185,557.  The bottom line Agency burden hours and
costs for the proposed amendments, presented in Table 3, are calculated
by adding person-hours per year down each column for technical,
managerial, and clerical staff, and by adding down the cost column.  In
this case, total cost is the sum of this total salary cost and total
travel expenses for tests attended.  The increased total annual hours
are 213. The increased total annual cost is $16,100.  The total average
annual cost of the rule, including the final amendments, is $201,657
($185,557+$16,100).

(iii)  Variations in the annual bottom line.   This section does not
apply since no significant variation is anticipated.

(f)	Reasons for Change in Burden.

The increase in burden is primarily due to the additional performance
testing, monitoring, recordkeeping, and reporting costs attributable to
the final amendments.  It is also due to the use of more current labor
rates for calculating the industry and Agency burden.

(g)  Burden Statement

The increased average annual respondent burden for one facility is
estimated at 118 (4,159/35.3) hours.  Burden means the total time,
effort, or financial resources expended by persons to generate,
maintain, retain, or disclose or provide information to or for a Federal
agency.  This includes the time needed to review instructions; develop,
acquire, install, and utilize technology and systems for the purposes of
collecting, validating, and verifying 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 be able to respond to
a collection of information; search data sources; complete and review
the collection of information; and transmit or otherwise disclose the
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 currently
valid OMB control number.  The OMB control numbers for EPA's regulations
in 40 CFR part 63 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 suggestions for minimizing
respondent burden, including through the use of automated collection
techniques, EPA has established a public docket for this ICR under
Docket ID No. EPA-HQ-OAR-2002-0051, which is available for online
viewing at   HYPERLINK "http://www.regulations.gov"  www.regulations.gov
, or in person viewing at the Air and Radiation Docket and Information
Center in the EPA Docket Center (EPA/DC), EPA West, Room 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 holidays.  The telephone number for the Reading Room is
(202) 566-1744, and the telephone number for the Air and Radiation
Docket and Information Center is (202) 566-1742.  An electronic version
of the public docket is available at www.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 documents in the
public docket that are available electronically.  When in the system,
select “search,” then key in the 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-2002-0051 and OMB Control Number
2060-0416 in any correspondence.

PART B

This section is not applicable because statistical methods are not used
in data collection associated with the final amendments.



	TABLE 2.  ANNUAL RESPONDENT BURDEN AND COST OF REPORTING AND
RECORDKEEPING REQUIREMENTS OF THE PROPOSED AMENDMENTS

Burden item	(A)

Person-hours per occurrence	(B)

No. of occurrences per respondent	(C)

Person-hours per respondent

(C=AxB)	(D)

Respondents per year*	(E)

Technical person-hours per year (E=CxD)	(F)

Management person-hours per year (Ex0.05)	(G)

Clerical person-hours per year

(Ex0.1)	(H)

Cost, $ **

1. Applications	N/A

	2. Surveys and Studies	N/A

	3. Acquisition, Installation, and Utilization of Technology and Systems
16	1	16	35.3	564.8	28.2	56.5	$56096

4. Reporting Requirements

A. Read instructions	2	1	2	35.3	70.6	3.5	7.1	$7,012

B. Required activities

Initial THC performance test	280	1	280	4	1120	56	112	111,238

Initial Hg performance test	280	1	280	4	1120	56	112	111,238

C. Create information	See 4B

	D. Gather existing information	See 4B

	E. Write report

Initial compliance certification	2	1	2	35.3	70.6	3.5	7.1	$7,012

Notification of anticipated startup	2	1	2	4	8.0	0.4	0.8	$795

Notification of actual startup	2	1	2	4	8.0	0.4	0.8	$795

Notification of Hg performance test	2	1	2	4	8.0	0.4	0.8	$795

Report of performance test	See 4B

	Report of monitoring exceedances	8	1	8	4	32.0	1.6	3.2	$3178

5. Recordkeeping Requirements

A. Read instructions	See 4A

	B. Plan activities	2	1	2	35.3	70.6	3.5	7.1	$7012

C. Implement activities	2	1	2	35.3	70.6	3.5	7.1	$7012

D. Develop record system	2	1	2	35.3	70.6	3.5	7.1	$7012

E. Time to enter information	2	4	8	35.3	282.4	14.1	28.2	$28,048

F. Time to train personnel	2	1	2	35.3	70.6	3.5	7.1	$7012

G. Time to adjust existing ways to comply with previously applicable
requirements	0	0	0

0.0	0.0	0.0	$0

H. Time to transmit or disclose information	0.25	2	0.5	35.3	17.7	0.9	1.8
$1753

I. Time for CEM audits	8	1	8	4	32.0	1.6	3.2	$3178

J. Time to record amount of cement recycled and amount wasted	0.25	365
91.25	35.3	3221.1	161.1	322.1	$319,921

TOTAL LABOR BURDEN AND COST

	3,616.5	180.8	361.6	$679,105

Total labor burden (hours)

4,159

Annualized cost of capital

$73,380

Operation and maintenance

$88,292

TOTAL ANNUAL COST (Labor + Annualized Capital + O&M)

$840,777

* Number of respondents: 94 existing plants over 3-yr term of ICR is
31.3 respondent. Four new kilns per year are projected.

b Costs are based on the following hourly rates:  technical at $89.63,
management at $104.21, and clerical at $44.79.

	TABLE 3.  ANNUAL BURDEN AND COST TO THE FEDERAL/STATE GOVERNMENT OF
THE PROPOSED AMENDMENTS

Burden item	(A)

Hours per occurrence	(B)

Hours per plant per year	(C)

Plants per year	(D)

Technical person-hours per respondent

(D=BxC)	(E)

Management person-hours per year (Dx0.05)	(F)

Clerical person-hours per year

(Dx0.1)	(G)

Cost, $ **

Initial performance test	5	1	4	1	0.02	0.4	$296

Repeat performance test-Retesting preparation	N/A

Repeat performance- Retesting	N/A

Litigation	N/A

Excess Emission Enforcement Activities	N/A

Report Review

	Notification of construction /reconstruction	N/A

Notification of anticipated startup	2	2	4	8	0.4	0.8	592

Notification of actual startup	2	2	4	8	0.4	0.8	592

Notification of special compliance requirements	N/A

Notification of applicability	N/A

Notification of initial performance test	2	2	4	8	0.4	0.8	592

Notification of CEMS performance evaluation	2	2	4	8	0.4	0.8	592

CEMS QA plan	2	2	4	8	0.4	0.8	592

Notification of compliance status	2	2	35.3	70.6	3.53	7.06	5,223

Site-specific test plan	N/A

	0	0	0	0

Repeat performance test report	N/A

	0	0	0	0

Semi-annual compliance report	2	2	35.3	70.6	3.53	7.06	5,223

NESHAP waiver application	N/A

	0	0	0	0

Compliance extension request	N/A

	0	0	0	0

Emergency startup, shutdown, and malfunction report	N/A

TOTAL BURDEN AND COST

185.2	9.26	18.52	$13,700

Total labor burden (hours)

	213

Travel Expenses for Tests Attended (1 person x 4 test site x 2 days/test
x $50 per diem + $500/round trip x 4 test site/yr) 	$,2400

TOTAL ANNUAL COST ($13,700 + 2,400)

$16,100 

a Costs are based on the following hourly rates:  technical at $66.23,
management at $92.09, and clerical at $31.40.

ATTACHMENT 1

SOURCE DATA AND INFORMATION REQUIREMENTS

Requirement	

Regulation citation	

General Provisions citation	

Record retention

Notifications	

	

	

Anticipated startup	

63.1353(b)(1)	

63.9(b)(3)	

5 years

Actual startup

	

63.1353(b)(1)	

63.9(b)(4)	

5 years

Performance test	

63.1353(b)(2)	

63.7 & 63.9(e)	

5 years

CEM performance evaluation	

63.1353(b)(4)	

63.8(e)	

5 years

Compliance status	

63.1353(b)(5)	

63.9(h)	

5 years

Reports	

	

	

Performance test	

63.1354(b)(1)	

63.10(d)	

	5 years

Monitoring exceedance	

63.1354(b)(8) - (10)	

63.10(e)(5)	

	5 years

No excess emissions	

63.1354(b)(9) 	

63.10(e)(5)	

	5 years

Startup, shutdown, malfunction	

63.1354(b)(4) - (5)	

63.10(d)(5)	

5 years

	RECORDKEEPING	

	

	

Record retention	

63.1355(a)	

63.10(b)(1)	

5 years

General NESHAP records	

63.1355(b)(1) - (3)	

63.10(b)(2) - (3)	

5 years

CMS performance records

	

63.1355(c)	

63.10(c)	

5 years

Cement kiln dust records

	

63.1355(d)	

63.10(b)(2) - (3)	

5 years

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