Document ID: EPA-HQ-OAR-2004-0016-0020
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2011-12-14T05:00Z

State Operating Permit Regulations (40 CFR part 70)
               EPA Number 1587.11, OMB Control Number 2060-0243
                        Change Worksheet Justification

Introduction
      The analysis in this document was performed to support changes in the Title V Operating Permit Regulations (40 CFR Part 70) Information Collection Request (ICR), OMB tracking number 2060-0243. This update is assigned EPA tracking number ICR #1587.11. The Part 70 Program ICR was last renewed in September 2007 and expires in April 2012. In the interim, the following changes are underway.
      The EPA is proceeding with the implementation of the Flexible Air Permitting Rule, and these changes are addressed in a separate ICR completed in November 2008. This rule promotes the use of flexible air permits (FAPs), which is a permit designed to facilitate flexible market-responsive operations at an industrial facility while ensuring equal or greater environmental protection than conventional air permits. Through this action, the Agency anticipates cost savings to subject sources to be approximately $2.4 million annually, while permitting authorities should experience $2.3 million annual cost savings. The Agency is estimated to expend over $205,000 additional cost during the same time frame.
      The Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule ("Tailoring Rule") was finalized in May 2010. To reflect the impact of including greenhouse gases (GHGs) in title V permitting programs, the corresponding changes were made to the title V burden estimates. These changes are explained in further detail in this change worksheet.

The Tailoring Rule
      This final rule "tailors" the requirements of the Clean Air Act (CAA) permitting programs to limit which facilities will be required to obtain title V operating permits. The rule establishes a schedule that will initially focus Part 70 operating permit programs on the largest sources with the most permitting experience, then expanding to cover the largest sources of greenhouse gases GHGs that may not have been previously covered by the CAA for other pollutants. 
      Under Step 1, occurring from January 2011 through June 2011, only sources required to have title V permits for non-GHG pollutants (i.e., "anyway" title V sources) will be required to address GHGs as part of their title V permitting. During this time, no sources would be subject to title V requirements due solely to GHG emissions. 
      Building on Step 1, Step 2 is in effect from July 2011 through June 2013. A source may be subject to title V permitting solely on the basis of its GHG emissions, provided the source exceeds the established Tailoring Rule thresholds. GHG emission sources that emit or have the potential to emit at least 100,000 tpy CO2e, and also emit or have the potential to emit 100 tpy of GHGs on a mass basis will be required to obtain a title V permit if they do not already have one. 
      
Changes
      Information obtained for this assessment of estimated resource requirements came from the burden analysis for the Tailoring Rule. For this rule, the EPA determined the approximate number of affected sources and the different burdens associated with each permitting action involving GHGs. Before the current ICR expires, permitting authorities will undergo six months of Step 1 and 18 months of Step 2. 
      The most recent title V program ICR estimates that 50 permits are completed every year for new sources. For this analysis, it is assumed that all 50 of these typically large industrial-type sources will be capable of potentially emitting GHG and will need to add GHG-related requirements to the permit. The estimated burden per title V permit in the ICR represents an average of multiple pollutants; EPA estimates the addition of GHGs will add an additional 10% of the time currently estimated for a new title V permit.  Ten percent is considered to be appropriate amount because for the most part, these sources will simply need to add information concerning inventory, reporting, or monitoring of their GHG emissions, as appropriate, which they can readily do. 
      Out of the 3,267 permit renewals conducted annually, the EPA estimates that 80% may potentially emit GHGs above the threshold due to combustion activities. Therefore, approximately 2,614 sources will need to address GHG in the new version of the permit. For such permit renewals, the EPA assumes that the inclusion of GHGs will require adding an additional 10% to the average time to process and issue. This equates to 99 and 220 additional burden hours for the permitting authorities and sources respectively.
      Revisions to title V permits will also be necessary based on the number of modifications calculated for this analysis. Revisions occurring specifically due to GHG may involve significant revisions, minor revisions, or administrative actions to operating permits. EPA estimates that this activity will require 40 hours per permit on average for permitting authorities to complete. At any level, it is assumed that the 448 modifications involving combustion that occur annually will need to include any GHG requirements in the revision of their respective title V permits.  EPA estimates that permitting authorities will spend, in addition to the current burden to issue a title V permit revision, an additional 10% of the 40 hours needed to complete this process, or four hours per action. Sources will experience a similar increase in burden, adding 4 more hours to the average revision time.
Permitting Authorities
      Based on the Tailoring Rule burden analysis, this update distinguishes between two types of sources  -  industrial and commercial/residential - with differences in associated burdens. The EPA estimates that an industrial permit due solely to GHGs will require the same amount of time to process and issue as a conventional pollutant, or 428 hours, as shown in Table 1. New commercial/residential permits will require only 50% of that time, or 214 hours. 
      Table 2 identifies the average burden by activity for the permitting authorities. Estimates are greater than the previous ICR primarily due to the increase in affected source numbers.  Twenty-seven new commercial/residential sources and 258 residential sources are expected to require a title V permit during this time due to GHG emissions. For an anyway source entering the title V program due to conventional pollutants, a permitting authority will spend an estimated 43 additional hours to account for any applicable requirements associated with GHGs, bringing the average burden to 471 hours per permit.

Sources
       The EPA estimates that an industrial permit due solely to GHGs will require the same amount of time to process and issue as a conventional pollutant, or 350 hours, as shown in Table 3. New commercial/residential permits will require only 50% of that time, or 180 hours. 
      Source burden, shown in Table 4, is expected to increase throughout the remaining two years of this ICR. As noted for permitting authorities, 27 new commercial/residential sources are expected to require a title V permit during this time, as well as approximately 258 industrial sources. For an anyway source in the title V program due to conventional pollutants, an additional 34 hours will be spent including applicable GHG requirements, bringing the average burden to 374 hours per permit. Overall, the annual burden for sources is estimated to be 4.3 million hours.

Agency
      The Tailoring Rule and its supporting documents did not focus on Agency burden impacts. However, due to the increase in sources subject to title V more time will be spent processing and revising title V permit applications. Updated burden estimates are represented in Table 5. The total annual effort is almost 41,000 hours at a cost of $1.8 million.
      
Additional Burden Due to Recent Actions
      Tables 6 and 7 highlight the burden impacts occurring as a result of the most recent program actions. The total additional burden for permitting authorities is estimated at 225,824 hours for the two-year period, while sources will experience a combined approximate burden of 262,791 hours.
      While the number of responding permitting authorities will remain the same, over the next two years there will be 285 additional sources that will respond due to GHGs.
      Incorporating these burden revisions into the currently approved Part 70 program ICR leads to an overall increase of 244,307 hours annually for respondents, bringing the overall burden to almost 5.7 million hours. In addition, the total number of respondents will increase to an estimated17,073 annually.
      
      
      
      
      
      
      
      
      Table 1. Average Permitting Authority Burden per GHG Title V Permit
                                   Activity
                     Burden Hours per Permit - Industrial
             Burden Hours per Permit - Commercial/ Residential[a]
Permit Application Review
                                                                            100
                                                                             33
Draft Permits Preparation
                                                                            150
                                                                             50
Comment Period Notification
                                                                             10
                                                                             10
Hold Public Hearings
                                                                            100
                                                                             90
Interaction with EPA
                                                                             20
                                                                              5
Analyze Public Comments
                                                                             40
                                                                             20
Permits Issuance
                                                                              8
                                                                              6
Total Burden
                                                                            428
                                                                            214
[a]Commercial/residential permits will be simpler, so the permitting authority would take about 1/3 of the time to review the permit application and draft the permit than it would for an industrial source permit. The comment period  notification and time for public hearings, however, would be about the same because of the fixed time necessary to provide notice and hold hearings. The amount of time interacting with EPA would be much less due to the relative simplicity of the permits. Analyzing public comments would take half as long as for an industrial permit because although the permits are much simpler, there could be a fair amount of public interest because of the location of the source. Permit issuance would take slightly less time than for an industrial source since most of the costs are fixed.
      
      
      

      
Table 2. Permitting Authority Burden and Cost (Annual)
                                   Activity
                                Number of Units
                                Hours per Unit
                                  Total Hours
                               Total Cost ($)[b]
                                 Annual Hours
                                Annual Cost ($)

                                   Year 1[a]
                                    Year 2

Program Administration
                                                                   112 Programs
                                                                   112 programs
                                                                           3500
                                                                        784,000
                                                                    $36,064,000
                                                                        392,000
                                                                    $18,032,000
Permit Preparation and Issuance[c]
 
New Industrial Permit due to GHG
                                                                             86
                                                                            172
                                                                            428
                                                                        110,424
                                                                     $5,079,504
                                                                         55,212
                                                                     $2,539,752
 
New Industrial Permit - add GHG component
                                                                             50
                                                                             50
                                                                            471
                                                                         47,100
                                                                     $2,166,600
                                                                         23,550
                                                                     $1,083,300
 
New Commercial/Residential Permit
                                                                              9
                                                                             18
                                                                            214
                                                                          5,778
                                                                       $265,788
                                                                          2,889
                                                                       $132,894
General Permits Administration
                                                                   112 Programs
                                                                   112 programs
                                                                             80
                                                                         17,920
                                                                       $824,320
                                                                          8,960
                                                                       $412,160
Permit Revisions
 
Permit Revisions - Due to GHG
                                                                            458
                                                                            915
                                                                             40
                                                                         54,920
                                                                     $2,526,320
                                                                         27,460
                                                                     $1,263,160
 
Permit Revisions - add GHG to Current Non-GHG Permits
                                                                            448
                                                                            448
                                                                              4
                                                                          3,584
                                                                       $164,864
                                                                          1,792
                                                                        $82,432
 
Permit Revisions - Significant
                                                                           1394
                                                                           1394
                                                                             90
                                                                        250,920
                                                                    $11,542,320
                                                                        125,460
                                                                     $5,771,160
 
Permit Revisions - Minor
                                                                           6968
                                                                           6968
                                                                             30
                                                                        418,080
                                                                    $19,231,680
                                                                        209,040
                                                                     $9,615,840
 
Permit Revisions - Administrative
                                                                           6968
                                                                           6968
                                                                              5
                                                                         69,680
                                                                     $3,205,280
                                                                         34,840
                                                                     $1,602,640
Permit Renewals
 
Permit Renewals w/addition of GHG
                                                                           2614
                                                                           2614
                                                                             99
                                                                        517,572
                                                                    $23,808,312
                                                                        258,786
                                                                    $11,904,156
 
Permit Renewals
                                                                            653
                                                                            653
                                                                             90
                                                                        117,540
                                                                     $5,406,840
                                                                         58,770
                                                                     $2,703,420
 
Review General Permits
                                                                            622
                                                                            622
                                                                             10
                                                                         12,440
                                                                       $572,240
                                                                          6,220
                                                                       $286,120
 
Review Monitoring and Compliance Certification Reports
                                                                         16,603
                                                                         16,603
                                                                             15
                                                                        498,090
                                                                    $22,912,140
                                                                        249,045
                                                                    $11,456,070
 
Annual Enforcement Activity Reporting
                                                                   112 Programs
                                                                   112 programs
                                                                             40
                                                                          8,960
                                                                       $412,160
                                                                          4,480
                                                                       $206,080
Totals
 
 
 
                                                                      2,917,008
                                                                   $134,182,368
                                                                      1,458,504
                                                                    $67,091,184
[a]Year 1 is comprised of Step 1 and six months of Step 2 under the GHG Tailoring Rule; throughout Year 2 Step 2 will be in place.
[b]Salaries from Title V ICR adjusted to 2007 dollars using 2007 OPM General Schedule Salary Table available at: http://www.opm.gov/oca/07tables/index.asp
[c]Incorporating GHG information/requirements into new, revised, and renewed permits adds an additional 10% to the current time.
[d]New commercial/residential permits require half the time needed for new industrial permits
[e]The Title V ICR estimates that 3,267 permits annually undergo renewal and we estimate that 80% of these will involve combustion. Therefore, 2,614 must add GHG requirements; while 653 do not.
      
             Table 3. Average Source Burden per GHG Title V Permit
                                   Activity
                     Burden Hours per Permit - Industrial
             Burden Hours per Permit - Commercial/ Residential[a]
Prepare Application
                                                                            300
                                                                            150
Draft Permits Interaction
                                                                             40
                                                                             20
Public Hearing Participation
                                                                             10
                                                                             10
Total Burden
                                                                            350
                                                                            180
[a]Commercial/residential permit applications will be significantly simpler than industrial source title V permit applications. However, due to their inexperience, we estimate commercial/residential sources will take half as long to complete their steps for their permit application as it will for industrial sources to complete their steps. Less interaction, again 50% less time, will be needed with permitting authorities during the permit drafting process. Finally, public hearing participation will likely require the same amount of time because of the fixed time burdens necessary to complete hearings.
      
      
Table 4. Source Respondent Burden and Cost (Annual)
                                   Activity
                                Number of Units
                                Hours per Unit
                                  Total Hours
                               Total Cost (s)[a]
                                 Annual Hours
                                Annual Cost ($)

                                    Year 1
                                    Year 2

Prepare Application
 
Industrial Permit due to GHG
                                                                             86
                                                                            172
                                                                            300
                                                                         77,400
                                                                    $11,455,200
                                                                         38,700
                                                                     $5,727,600
 
Industrial Permit - add GHG component to Non-GHG Permit
                                                                             50
                                                                             50
                                                                            330
                                                                         33,000
                                                                     $4,884,000
                                                                         16,500
                                                                     $2,442,000
 
Commercial/Residential Permit
                                                                              9
                                                                             18
                                                                            150
                                                                          4,050
                                                                       $599,400
                                                                          2,025
                                                                       $299,700
Draft Permit
 
Industrial
                                                                             86
                                                                            172
                                                                             40
                                                                         10,320
                                                                       $402,480
                                                                          5,160
                                                                       $201,240
 
Add GHG component to new Non-GHG Permit
                                                                             50
                                                                             50
                                                                             44
                                                                          4,400
                                                                       $171,600
                                                                          2,200
                                                                        $85,800
 
Commercial/Residential
                                                                              9
                                                                             18
                                                                             20
                                                                            540
                                                                        $21,060
                                                                            270
                                                                        $10,530
Gap Filling Monitoring Development
                                                                             54
                                                                             54
                                                                             40
                                                                          4,320
                                                                       $168,480
                                                                          2,160
                                                                        $84,240
Public Hearing Participation
                                                                              3
                                                                              4
                                                                             10
                                                                             70
                                                                         $2,730
                                                                             35
                                                                         $1,365
Operate Gap Filling Monitoring
                                                                           8302
                                                                           8302
                                                                            200
                                                                      3,320,800
                                                                   $129,511,200
                                                                      1,660,400
                                                                    $64,755,600
Prepare Monitoring Reports
                                                                         16,603
                                                                         16,603
                                                                             80
                                                                      2,656,480
                                                                   $103,602,720
                                                                      1,328,240
                                                                    $51,801,360
Permit Revisions
 
Significant Permit Modifications
                                                                           1394
                                                                           1394
                                                                             80
                                                                        223,040
                                                                     $8,698,560
                                                                        111,520
                                                                     $4,349,280
 
Minor Permit Modifications
                                                                           6968
                                                                           6968
                                                                             40
                                                                        557,440
                                                                    $21,740,160
                                                                        278,720
                                                                    $10,870,080
 
Administrative Amendments
                                                                           6968
                                                                           6968
                                                                              8
                                                                        111,488
                                                                     $4,348,032
                                                                         55,744
                                                                     $2,174,016
 
Permit Revisions - due to GHG 
                                                                              
                                                                            915
                                                                             43
                                                                         39,345
                                                                     $1,534,455
                                                                         19,673
                                                                       $767,228
 
Permit Revisions - add GHG to current non-GHG permits
                                                                            448
                                                                            448
                                                                              4
                                                                          3,393
                                                                       $132,321
                                                                          1,696
                                                                        $66,161
Permit Renewals
 
General Permit Renewal
                                                                            622
                                                                            622
                                                                              2
                                                                          2,488
                                                                        $97,032
                                                                          1,244
                                                                        $48,516
 
Permit Renewals w/addition of GHG
                                                                           2614
                                                                           2614
                                                                            220
                                                                      1,150,160
                                                                    $44,856,240
                                                                        575,080
                                                                    $22,428,120
 
Permit Renewals    
                                                                            653
                                                                            653
                                                                            200
                                                                        261,200
                                                                    $10,186,800
                                                                        130,600
                                                                     $5,093,400
 
Other Activities
                                                                           3267
                                                                           3267
                                                                             20
                                                                        130,680
                                                                     $5,096,520
                                                                         65,340
                                                                     $2,548,260
Totals
 
 
 
                                                                      8,590,614
                                                                   $335,033,940
                                                                      4,295,307
                                                                   $167,516,970
[a]Year 1 is comprised of Step 1 and six months of Step 2 under the GHG Tailoring Rule; throughout Year 2 Step 2 will be in place.
[b]Salaries from Title V ICR adjusted to 2007 dollars using 2007 OPM General Schedule Salary Table available at: http://www.opm.gov/oca/07tables/index.asp
[c]Incorporating GHG information/requirements into new, revised, and renewed permits adds an additional 10% to the current time.
[d]New commercial/residential permits require half the time needed for new industrial permits
[e]The Title V ICR estimates that 3,267 permits annually undergo renewal and we estimate that 80% of these will involve combustion.
      
      
      
Table 5. Agency Burden and Cost for the Two-Year Period
                                   Activity
                                Number of Units
                                Hours per Unit
                                  Total Hours
                                Total Cost (s)
                                 Annual Hours
                                Annual Cost ($)

                                   Year 1[a]
                                    Year 2

Review Permits and Revisions
 
New Permits[b]
                                                                             36
                                                                             60
                                                                             20
                                                                          1,920
                                                                        $86,688
                                                                            960
                                                                        $43,344
 
Renewals
                                                                            163
                                                                            163
                                                                             20
                                                                          6,520
                                                                       $294,378
                                                                          3,260
                                                                       $147,189
 
Permit Revisions due to GHGs[c]
                                                                            458
                                                                            915
                                                                              8
                                                                         10,984
                                                                       $495,928
                                                                          5,492
                                                                       $247,964
 
Significant Permit Revisions
                                                                          1,394
                                                                          1,394
                                                                              8
                                                                         22,304
                                                                     $1,007,026
                                                                         11,152
                                                                       $503,513
 
Minor Permit Revisions
                                                                          6,968
                                                                          6,968
                                                                              1
                                                                         13,936
                                                                       $629,210
                                                                          6,968
                                                                       $314,605
Consult with Permitting Authority
 
New Permits
                                                                             36
                                                                             60
                                                                              8
                                                                            768
                                                                        $34,675
                                                                            384
                                                                        $17,338
 
Permit Revisions due to GHGs
                                                                            115
                                                                            229
                                                                              8
                                                                          2,752
                                                                       $124,253
                                                                          1,376
                                                                        $62,126
 
Significant Permit Revisions
                                                                            348
                                                                            348
                                                                              8
                                                                          5,568
                                                                       $251,395
                                                                          2,784
                                                                       $125,698
 
Minor Permit Revisions
                                                                          1,742
                                                                          1,742
                                                                              1
                                                                          3,484
                                                                       $157,303
                                                                          1,742
                                                                        $78,651
Program Oversight
                                                                   112 Programs
                                                                   112 Programs
                                                                             50
                                                                         11,200
                                                                       $505,680
                                                                          5,600
                                                                       $252,840
Review the Annual Report
                                                                            112
                                                                            112
                                                                             10
                                                                          2,240
                                                                       $101,136
                                                                          1,120
                                                                        $50,568
Totals

                                                                         81,676
                                                                     $3,687,671
                                                                         40,838
                                                                     $1,843,836
[a]Year 1 is comprised of Step 1 and six months of Step 2 under the GHG Tailoring Rule; throughout Year 2 Step 2 will be in place.
[b]Review and consultation conducted on approximately 25% of permits annually
[c]Permit revisions due to GHGs [add text for the fact these are separate?] are assumed to require the same amount of review and consultation time as significant or minor permit revisions. 
      
      
      
      
      
      
Table 6.  Additional Permitting Authority Burden and Cost For the Two-Year Period
                                   Activity
                            Burden Hour per Permit
                               Affected Permits
                             Total Burden (hours)
                             Total Cost ($2007)[b]

                                   Year 1[a]
                                    Year 2

New Permit Preparation and Issuance - Industrial
                                                                            428
                                                                             86
                                                                            172
                                                                        110,281
                                                                      5,072,941
Add GHG component to new Non-GHG Permit[b]
                                                                             43
                                                                             50
                                                                             50
                                                                          4,300
                                                                       $197,800
New Permit Preparation and Issuance - Commercial/Residential[c]
                                                                            214
                                                                              9
                                                                             18
                                                                          5,707
                                                                       $262,507
Permit Revisions - due to GHG 
                                                                             40
                                                                            458
                                                                            915
                                                                         54,900
                                                                     $2,525,400
Permit Revisions - add GHG to Current Non-GHG Permits
                                                                              4
                                                                            448
                                                                            448
                                                                          3,584
                                                                       $164,864
Permit Renewals[d]
                                                                              9
                                                                           2614
                                                                          2,614
                                                                         47,052
                                                                     $2,164,392
Total Additional Burden
 
 
 
                                                                        225,824
                                                                    $10,387,904
[a]Year 1 is comprised of Step 1 and six months of Step 2 under the GHG Tailoring Rule; throughout Year 2 Step 2 will be in place.
 
[b]Salaries from Title V ICR adjusted to 2007 dollars using 2007 OPM General Schedule Salary Table available at: http://www.opm.gov/oca/07tables/index.asp
[c]Incorporating GHG information/requirements into new, revised, and renewed permits adds an additional 10% to the current time.
[d]New commercial/residential permits require half the time needed for new industrial permits
[e]The Title V ICR estimates that 3,267 permits annually undergo renewal and we estimate that 80% of these will involve combustion.
      
      
      
      
      
      
      
Table 7.  Additional Source Burden and Cost For the Two-Year Period
                                   Activity
                            Burden Hour per Permit
                                Rate per Houra
                               Affected Permits
                             Total Burden (hours)
                             Total Cost ($2007)[b]

                                   Year 1[a]
                                    Year 2

Prepare Application - Industrial
                                                                            300
                                                                           $148
                                                                             86
                                                                            172
                                                                         77,300
                                                                    $11,440,400
Prepare Application - add GHG component to Non-GHG Permit[c]
                                                                             30
                                                                           $148
                                                                             50
                                                                             50
                                                                          3,000
                                                                       $444,000
Prepare Application - Commercial/Residential[d]
                                                                            150
                                                                           $148
                                                                              9
                                                                             18
                                                                          4,000
                                                                       $592,000
Draft Permit - Industrial
                                                                             40
                                                                            $39
                                                                             86
                                                                            172
                                                                         10,307
                                                                        401,960
Draft Permit - Add GHG component to new Non-GHG Permit
                                                                              4
                                                                            $39
                                                                             50
                                                                             50
                                                                            400
                                                                        $15,600
Draft Permit - Commercial/Residential
                                                                             20
                                                                            $39
                                                                              9
                                                                             18
                                                                            533
                                                                        $20,800
Public Hearing Participation[e]
                                                                             10
                                                                            $39
                                                                              3
                                                                              4
                                                                             68
                                                                         $2,647
Permit Revisions - due to GHG 
                                                                             43
                                                                            $39
                                                                            458
                                                                            915
                                                                         59,039
                                                                     $2,302,521
Permit Revisions - add GHG to current non-GHG permits
                                                                              4
                                                                            $39
                                                                            448
                                                                            448
                                                                          3,584
                                                                       $139,776
Permit Renewals[f]
                                                                             20
                                                                            $39
                                                                           2614
                                                                          2,614
                                                                        104,560
                                                                     $4,077,840
Total Additional Burden
 
 
 
 
                                                                        262,791
                                                                    $19,437,544
[a]Year 1 is comprised of Step 1 and six months of Step 2 under the GHG Tailoring Rule; throughout Year 2 Step 2 will be in place.
 
 
[b]Salaries from Title V ICR adjusted to 2007 dollars using Employment Cost Index, Table 1, Private Industry Workers, Management, professional, and related. Index for December 2007 relative to December 2006. Available at: http://www.bls.gov/web/echistrynaics.pdf
[c]Incorporating GHG information/requirements into new, revised, and renewed permits adds an additional 10% burden to the current time.
[d]New commercial/residential permits require half the time needed for new industrial permits
[e]Amount of time required for public hearing participation remains the same for all permits, and one in 50 permits requires a hearing.

[ ]
[f]The Title V ICR estimates that 3,267 permits annually undergo renewal; assume 80% of these involve combustion and require the addition of GHG components.