Document ID: EPA-HQ-OAR-2008-0708-0499
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2010-08-12T04:00Z

----- Forwarded by Melanie King/RTP/USEPA/US on 08/10/2010 06:01 PM
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  |Larry Sorrels/RTP/USEPA/US                                                                                                                
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  |"Higgins, Cortney" <Cortney_Higgins@omb.eop.gov>                                                                                          
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  |Melanie King/RTP/USEPA/US@EPA, Amy Lamson/RTP/USEPA/US@EPA, Ron 
Evans/RTP/USEPA/US@EPA, RobertJ Wayland/RTP/USEPA/US@EPA, Peter           |
  |Tsirigotis/RTP/USEPA/US@EPA                                                                                                               
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  |08/10/2010 02:25 PM                                                                                                                       
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  |RE: revised SI RICE NESHAP RIA - redline/strikeout and final versions                                                                     
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Cortney,
Attached are the redline/strikeout and clean versions of the final SI RICE 
NESHAP RIA.  Thank you.

Larry Sorrels

-----"Higgins, Cortney" <Cortney_Higgins@omb.eop.gov> wrote: -----

 To: Larry Sorrels/RTP/USEPA/US@EPA
 From: "Higgins, Cortney" <Cortney_Higgins@omb.eop.gov>
 Date: 08/10/2010 02:11PM
 Cc: Melanie King/RTP/USEPA/US@EPA
 Subject: RE: revised SI RICE NESHAP RIA

 Great!

 I think with this change and the footnote change for the Tables 4-4 to  4-6, 
the RIA should be ready to go.  Once  it’s done, can you send me a  redline 
and clean version of the RIA?

 Thanks,

 Cortney

 From: Sorrels.Larry@epamail.epa.gov [
 mailto:Sorrels.Larry@epamail.epa.gov]
 Sent: Tuesday, August 10, 2010 2:10 PM
 To: Higgins, Cortney
 Cc: King.Melanie@epamail.epa.gov; Talcott.Fred@epamail.epa.gov;  
Wayland.Robertj@epamail.epa.gov; Lamson.Amy@epamail.epa.gov;  
Nagelhout.Peter@epamail.epa.gov
 Subject: RE: revised SI RICE NESHAP RIA

 Okay, thanks.  I will put these sentences in a paragraph just before  Table 
1-1 as the following:

   It should be noted that there is a difference between the annualized
 social costs estimated at 3% and 7%.   We approximate the annualized
 social costs with the compliance costs of the rule for the RIA, as we  
mention later in Section 5. The annualized compliance costs of the rule  are 
estimated to be $244 million (2009 dollars) using a 3% interest  rate.  Thus, 
the annualized social costs for a 3% rate are also $244  million using our 
approximation, and this estimate is very close to the  annualized social cost 
estimate at a 7% rate.

 Please let me know if you have any questions or comments.

 Larry S.

 -----"Higgins, Cortney" <Cortney_Higgins@omb.eop.gov> wrote: -----

 To: Larry Sorrels/RTP/USEPA/US@EPA
 From: "Higgins, Cortney" <Cortney_Higgins@omb.eop.gov>
 Date: 08/10/2010 01:59PM
 Cc: Melanie King/RTP/USEPA/US@EPA, Fred Talcott/DC/USEPA/US@EPA,  RobertJ 
Wayland/RTP/USEPA/US@EPA, Amy Lamson/RTP/USEPA/US@EPA, Peter  
Nagelhout/DC/USEPA/US@EPA
 Subject: RE: revised SI RICE NESHAP RIA

 No, the text around the summary table in the RIA (the very first table  that 
has the costs and benefits for the rule).

 From: Sorrels.Larry@epamail.epa.gov [
 mailto:Sorrels.Larry@epamail.epa.gov]
 Sent: Tuesday, August 10, 2010 1:51 PM
 To: Higgins, Cortney
 Cc: King.Melanie@epamail.epa.gov; Talcott.Fred@epamail.epa.gov;  
Wayland.Robertj@epamail.epa.gov; Lamson.Amy@epamail.epa.gov;  
Nagelhout.Peter@epamail.epa.gov
 Subject: RE: revised SI RICE NESHAP RIA

 Cortney, by table, are you referring to the impacts table in ROCIS?
 If so, I will do this.

 Larry S.

 -----"Higgins, Cortney" <Cortney_Higgins@omb.eop.gov> wrote: -----

 To: Larry Sorrels/RTP/USEPA/US@EPA
 From: "Higgins, Cortney" <Cortney_Higgins@omb.eop.gov>
 Date: 08/10/2010 01:41PM
 Cc: Melanie King/RTP/USEPA/US@EPA, Fred Talcott/DC/USEPA/US@EPA,  RobertJ 
Wayland/RTP/USEPA/US@EPA, Amy Lamson/RTP/USEPA/US@EPA, Peter  
Nagelhout/DC/USEPA/US@EPA
 Subject: RE: revised SI RICE NESHAP RIA

 Can you clarify this in the text around the table by adding sentences  based 
on what you wrote below, e.g. “There is a difference between the
 social costs estimated at 3% and 7%.   We approximate the annualized
 social costs with the compliance costs of the rule for this RIA, as we  
mention in Section 5.  The annualized compliance costs of the rule are  
estimated to be $244 million using a 3% interest rate.  Thus, the  annualized 
social costs for a 3% rate are $244 million using our  approximation, and this 
estimate is very close to the estimate at a 7%  rate.”

 From: Sorrels.Larry@epamail.epa.gov [
 mailto:Sorrels.Larry@epamail.epa.gov]
 Sent: Tuesday, August 10, 2010 12:38 PM
 To: Higgins, Cortney
 Cc: King.Melanie@epamail.epa.gov; Talcott.Fred@epamail.epa.gov;  
Wayland.Robertj@epamail.epa.gov; Lamson.Amy@epamail.epa.gov;  
Nagelhout.Peter@epamail.epa.gov
 Subject: RE: revised SI RICE NESHAP RIA

 Cortney,

 There is a difference between the social costs estimated at 3% and 7%.
 We approximate the annualized social costs with the compliance costs of  the 
rule for this RIA, as we mention in Section 5.  The annualized  compliance 
costs of the rule are estimated to be $244 million using a  3% interest rate, 
according to the ROCIS form.  Thus, the annualized  social costs for a 3% rate 
are $244 million using our approximation,  though this estimate is actually 
quite close to the estimate at a 7%  rate.  Thanks.

 -----"Higgins, Cortney" <Cortney_Higgins@omb.eop.gov> wrote: -----

 To: Melanie King/RTP/USEPA/US@EPA, Larry Sorrels/RTP/USEPA/US@EPA
 From: "Higgins, Cortney" <Cortney_Higgins@omb.eop.gov>
 Date: 08/10/2010 12:14PM
 Cc: Fred Talcott/DC/USEPA/US@EPA, RobertJ Wayland/RTP/USEPA/US@EPA, Amy  
Lamson/RTP/USEPA/US@EPA, Peter Nagelhout/DC/USEPA/US@EPA
 Subject: RE: revised SI RICE NESHAP RIA

 Hi Melanie or Larry,
 Can you explain why there's no difference between the social costs at  3% and 
at 7%?  The footnote (3) explains that the annual compliance  costs are a 
proxy for the annual social costs, but it doesn't explain  why there's no 
difference.

 Regards,
 Cortney

(See attached file: Final SI RICE
RIA_8-10-10_draftOMBversion4redlinestrikeout.doc)(See attached file:
Final SI RICE RIA_8-10-10_complete.doc)