Document ID: EPA-HQ-OAR-2003-0053-2181
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2005-05-16T04:00Z

1
SUPPORTING
STATEMENT
Rule
To
Reduce
Interstate
Transport
of
Fine
Particulate
Matter
and
Ozone
(
Clean
Air
Interstate
Rule)
EPA
ICR
#
2152.02
1.
IDENTIFICATION
OF
THE
INFORMATION
COLLECTION
1(
a)
Title
of
the
Information
Collection
"
Rule
to
Reduce
Interstate
Transport
of
Fine
Particulate
Matter
and
Ozone
(
Clean
Air
Interstate
Rule)
­
Final
Rule."

1(
b)
Short
Characterization/
Abstract
The
United
States
(
U.
S.)
Environmental
Protection
Agency
(
EPA)
has
promulgated
a
Rule
to
Reduce
Interstate
Transport
of
Fine
Particulate
Matter
and
Ozone
(
Clean
Air
Interstate
Rule)
(
CAIR)
that
includes
new
reporting
requirements
and
combines
these
new
requirements
with
existing
requirements
from
the
Consolidated
Emissions
Reporting
Rule
(
CERR),
the
Emission
Reporting
Requirements
for
Ozone
State
Implementation
Plan
(
SIP)
Revisions
Relating
to
Statewide
Budgets
for
NO
X
Emissions
to
Reduce
Regional
Transport
of
Ozone
(
NO
X
SIP
Call)
and
the
Acid
Rain
Program
under
Title
IV
of
the
CAA
Amendments
of
1990.
Each
of
these
three
existing
requirements
has
an
approved
ICR
in
place.
The
current
ICRs
are:
for
the
CERR,
ICR
#
0916.10
(
OMB
#
2060­
0088),
for
the
NO
X
SIP
Call,
ICR
#
1857.03
(
OMB
#
2060­
0445)
and
for
the
Acid
Rain
Program,
ICR
#
1633.13
(
OMB
#
2060­
0258).

This
supporting
statement
and
ICR
is
being
submitted
to
account
for
the
incremental
burden
associated
with
the
CAIR.
As
such,
this
supporting
statement
references
the
burden
analysis
included
in
ICR
#
s
0916.10,
1857.03
and
1633.13
and
estimates
the
change
in
burden
resulting
from
the
CAIR
beyond
the
scope
of
these
ICRs.

EPA
today
adopts
a
rule
that,
among
other
things,
details
the
additions
and
changes
to
reporting
requirements
associated
with
CAIR.
These
changes
can
be
logically
divided
in
to
two
categories:
1.
Changes
to
existing
requirements
for
emission
reporting
under
the
CERR
and
NO
X
SIP
Call
and
2.
The
addition
of
reporting
requirements
to
support
emissions
trading
in
States
using
the
CAIR
model
cap
and
trade
rules.
Throughout
this
Supporting
Statement,
the
burden
analysis
associated
with
these
two
categories
will
be
discussed
sequentially
as
"
Emission
Reporting
Requirements"
and
"
Emission
Trading
Requirements."
1For
the
purposes
of
the
burden
estimates,
the
State
of
Georgia
is
considered
a
NOX
SIP
Call
State.
However,
it
should
be
noted
that
EPA
has
proposed
to
stay
the
NOX
SIP
Call
as
it
relates
to
Georgia.
(
See
70
FR
9897­
9901,
March
1,
2005.)
Burden
increases
and
decreases
for
NOX
SIP
Call
States
are
relatively
small;
therefore,
there
will
be
little
variation
in
burden
totals
if
Georgia's
NOX
SIP
Call
requirements
are
removed
under
a
separate
action.

2
Emission
Reporting
Requirements
Taken
together,
the
existing
emissions
reporting
requirements
under
the
NO
X
SIP
Call
and
CERR
are
already
rather
comprehensive
in
terms
of
the
States
covered
and
the
information
required.
Therefore,
the
practical
impact
of
the
changes
in
CAIR
is
to
impose
only
three
new
requirements.

First,
in
Arkansas,
Florida,
Iowa,
Louisiana,
Mississippi
and
Wisconsin
which
we
have
determined
make
significant
contributions
to
ozone
nonattainment
in
another
State
but
are
not
among
the
21
States
subject
to
the
NO
X
SIP
Call1,
the
required
emissions
reporting
will
be
expanded
to
match
those
of
the
NO
X
SIP
Call
States.
The
change
requires
that
they
report
NO
X
emissions
during
the
5­
month
ozone
season,
in
addition
to
the
existing
requirement
for
reporting
emissions
for
the
full
year.
This
new
requirement
begins
with
the
triennial
inventory
year
prior
to
the
CAIR
implementation
date.
This
will
be
the
2008
inventory
year,
the
report
for
which
will
be
due
to
EPA
by
June
1,
2010.

Second,
under
the
existing
CERR,
yearly
reporting
is
required
only
for
sources
whose
emissions
exceed
specified
amounts.
Under
the
CAIR,
the
23
States
and
the
District
of
Columbia
subject
to
the
CAIR
for
reasons
of
PM
2.5
must
report
to
EPA
each
year
a
set
of
specified
data
elements
for
all
sources
subject
to
new
controls
adopted
specifically
to
meet
the
CAIR
requirements
related
to
PM
2.5,
unless
the
sources
participate
in
an
EPA­
administered
emissions
trading
program.
This
is
like
the
every­
year
reporting
requirement
for
controlled
sources
under
the
NO
X
SIP
Call,
but
covering
SO
2
in
addition
to
NO
X
and
covering
the
whole
year
 
since
the
PM
2.5
NAAQS
at
issue
is
the
annual
NAAQS
 
rather
than
only
the
ozone
season.
This
rule
could
increase
the
number
of
sources
for
which
States
must
submit
reports
each
year
rather
than
only
every
third
year,
if
a
State
chooses
to
control
non­
EGU
sources
under
the
CAIR
or
if
the
State
does
not
join
the
EPA
trading
programs
for
EGUs.
This
new
requirement
will
begin
with
the
2009
inventory
year,
the
report
for
which
will
be
due
to
EPA
by
June
1,
2011.
After
the
2009
reporting
year,
this
new
requirement
will
have
no
effect
on
States
that
fully
comply
with
the
CAIR
by
requiring
their
EGUs
to
participate
in
the
EPA
model
cap­
and­
trade
programs.

Third,
EPA
is
eliminating
a
requirement
of
the
NO
X
SIP
Call
for
a
special
all­
sources
report
by
affected
States
for
the
year
2007,
due
December
31,
2008.
The
normal
cycle
of
every­
thirdyear
reporting
would
also
produce
the
same
type
of
all­
sources
reports
for
2005
and
2008.
The
EPA
originally
intended
to
use
the
information
on
2007
emissions
to
re­
assess
the
effectiveness
of
the
NO
X
SIP
Call
in
eliminating
upwind
NO
X
emissions
that
contribute
significantly
to
downwind
ozone
nonattainment
as
of
the
latest
1­
hour
ozone
attainment
date
within
the
region.
The
large
majority
of
the
emissions
reductions
required
by
the
NO
X
SIP
Call
have
been
assigned
to
sources
that
participate
in
the
EPA­
administered
trading
program,
which
has
independent
procedures
to
3
ensure
that
emissions
reductions
are
achieved.
We
now
believe
that
examining
2005
and
2008
inventory
submissions
and
the
annual
reporting
on
controlled
sources
will
permit
us
to
evaluate
the
effectiveness
of
individual
State
rules
or
implementation
practices
in
reducing
emissions.
We
no
longer
need
the
special
2007
emissions
inventory
information
to
broadly
revisit
the
NO
X
SIP
Call,
and
we
recognize
that
preparing
that
inventory
could
draw
resources
away
from
more
important
work
by
State
air
agencies.

Emission
Trading
Requirements
For
this
ICR,
it
is
assumed
that
each
State
will
adopt
the
relevant
CAIR
SO
2,
annual
NO
X
and
ozone
season
NO
X
model
trading
rules,
and
the
burden
associated
with
these
programs
is
evaluated.
The
trading
program
burden
would
include
the
paperwork
burden
related
to
(
1)
transferring
and
tracking
allowances;
(
2)
allocation
of
allowances
to
affected
units;
(
3)
permitting;
(
4)
annual
year
end
compliance
certification;
and
(
5)
monitoring
and
reporting.
The
monitoring
and
reporting
requirements
of
a
trading
program
will
require
capital
and
labor
expenditures
by
industry,
and
these
are
evaluated.

Like
with
the
Acid
Rain
Program
and
the
NO
X
SIP
Call,
the
ability
to
buy
and
sell
(
or
transfer)
allowances
is
expected
to
provide
substantial
economic
benefits
by
encouraging
the
greatest
emissions
reductions
where
costs
of
reductions
are
lowest.
Allowance
trading
cannot
be
implemented,
however,
unless
regulations
governing
emissions
monitoring
and
permitting
of
sources
are
in
place
as
well.
To
ensure
compliance
with
the
emissions
reduction
requirements
and
to
provide
the
region
wide
consistency
needed
to
foster
the
allowance
market,
the
designated
representative
of
the
owners
and
operators
of
each
source
with
affected
units
are
required
to
have
CAIR
requirements
integrated
into
their
Title
V
permits
for
the
affected
source
and
to
certify
that
an
approved
SO
2
and
NO
X
emissions
monitoring
system
has
been
installed
and
is
properly
operated
at
each
affected
unit.

For
affected
units
currently
required
to
monitor
using
Part
75
provisions,
information
for
the
allocation
methodology
will
be
recorded
and
collected
as
part
of
the
emissions
monitoring
and
reporting
process.

While
many
sources
have
already
installed
necessary
emissions
monitoring
equipment
due
to
requirements
under
other
regulations,
some
sources
will
need
to
install
new
monitors
or
upgrade
existing
monitors.
Capital
costs
also
usually
include
the
cost
of
initial
certification
of
new
or
upgraded
monitors
is
included
as
part
of
start­
up
costs.

Emissions
monitoring
and
reporting
by
sources
in
the
cap
and
trade
program
is
fundamental
to
the
allowance
trading
system.
EPA
will
use
the
data
contained
in
the
reports
to
verify
actual
emissions.
Without
accurate
monitoring
and
reporting
of
emissions,
the
integrity
of
the
allowance
system
would
be
undermined,
and
there
would
be
no
assurance
that
the
cap
is
achieved
and
emissions
had
been
reduced.
To
meet
the
emissions
monitoring,
recordkeeping
and
reporting
requirements,
affected
units
are
required
to
(
1)
submit
a
monitoring
plan
and
certification
reports
4
for
each
monitoring
system,
(
2)
record
hourly
emissions
data,
and
(
3)
submit
reports
of
their
emissions
and
operating
data
to
EPA.
Sources
with
monitors
already
certified
under
Part
75
may
be
exempt
from
initial
certification
requirements.

All
participants
in
the
allowance
transfer
system
are
required
either
to
complete
and
submit
an
allowance
transfer
form
for
each
allowance
transfer
or
to
perform
the
transfer
on­
line.
Participants
in
the
transfer
system
that
are
not
affected
sources,
such
as
allowance
brokers,
fuel
suppliers
and
environmental
groups
are
also
required
to
file
a
one
time
account
information
application
to
establish
accounts
in
the
allowance
tracking
systems.
For
sources
affected
by
the
CAIR,
allowance
transfers
currently
conducted
under
the
Acid
Rain
and
NO
X
SIP
Call
Programs
will
in
the
future
occur
in
the
context
of
the
CAIR
Trading
Program.

2.
NEED
FOR
AND
USE
OF
THE
COLLECTION
2(
a)
Need/
Authority
for
the
Collection
One
of
the
goals
of
this
rulemaking
is
to
consolidate
the
emission
inventory
reporting
requirements
found
in
several
existing
regulations
and
streamline
the
activities
involved
in
submitting
the
emissions
data
to
EPA.
This
will
enable
the
EPA
to
achieve
uniformity
and
completeness
in
emission
inventories
used
to
support
national,
regional,
and
local
air
quality
planning
and
attainment.

While
the
CAA
does
not
provide
a
specific
authorization
for
a
national
emissions
data
base,
the
CAA
provides
the
EPA
ample
legislative
authority
for
acquiring
such
data.
Emissions
data
are
of
vital
importance
to
the
EPA
for
fulfilling
a
host
of
monitoring,
standard­
setting,
rulemaking,
reviewing,
and
reporting
duties.
Section
110
and
301(
a)
of
the
CAA
provide
a
primary
authority
for
a
national
emissions
data
base.
Section
110
requires
each
State
to
prepare
a
plan
which
provides
for
implementation,
maintenance,
and
enforcement
of
the
primary
standard
for
each
pollutant
for
which
air
quality
criteria
have
been
issued.
This
plan
must
include
provisions
for
periodic
reports
identifying
sources
and
listing
amounts
of
emissions.
Section
301(
a)
authorizes
the
Administrator
to
promulgate
necessary
regulations.

Congressional
support
for
collecting
and
reporting
emissions
data
is
demonstrated
in
three
sections
of
the
CAA.
Section
110(
a)(
2)(
F)
requires
that
each
State
provide
for
periodic
reports
on
the
nature
and
amounts
of
emissions
of
criteria
pollutants
from
stationary
sources.

Sections
182(
a)(
3)(
A)
and
187(
a)(
5)
of
the
CAA
specify
periodic
inventory
requirements
for
ozone
and
CO
nonattainment
areas,
respectively.
Section
182(
a)(
3)(
A)
requires
States
with
ozone
nonattainment
areas
to
submit
a
current
inventory
of
actual
emissions
of
VOC,
NO
X,
and
CO
every
3
years.
Section
187(
a)(
5)
requires
a
similar
inventory
of
actual
CO
emissions
for
CO
nonattainment
areas.
Periodic
inventories
include
emission
estimates
for
all
point,
nonpoint,
onroad
mobile,
nonroad
mobile,
and
biogenic
sources.
Section
172(
c)(
3)
also
provides
the
5
Administrator
with
discretionary
authority
to
require
other
emissions
data
as
deemed
necessary
for
State
Implementation
Plan
(
SIP)
development
in
nonattainment
areas
to
meet
the
NAAQS.
In
1998,
EPA
promulgated
the
NO
X
SIP
Call
which
requires
the
affected
States
and
the
District
of
Columbia
to
submit
SIP
revisions
providing
for
NO
X
reductions
to
reduce
their
adverse
impact
on
downwind
ozone
nonattainment
areas.
(
63
FR
57356,
October
27,
1998).
As
part
of
that
rule,
codified
in
40
CFR
51.122,
EPA
established
emissions
reporting
requirements
to
be
included
in
the
SIP
revisions
required
under
that
action.
Another
set
of
emissions
reporting
requirements,
termed
the
Consolidated
Emissions
Reporting
Rule
(
CERR),
was
promulgated
by
EPA
in
2002,
and
is
codified
at
40
CFR
part
51
subpart
A.
(
67
FR
39602,
June
10,
2002).
These
requirements
replaced
the
requirements
previously
contained
in
subpart
Q,
expanding
their
geographic
and
pollutant
coverages
while
simplifying
them
in
other
ways.

As
noted
above,
at
present,
two
sections
of
title
40
of
the
CFR
contain
emissions
reporting
requirements
applicable
to
States:
subpart
A
of
part
51
(
the
CERR)
and
section
51.122
in
subpart
G
of
part
51
(
the
NO
X
SIP
Call
reporting
requirements).
The
rulemaking
consolidates
these,
with
modifications
as
detailed
below.
The
modifications
are
intended
to
achieve
the
additional
reporting
needed
to
verify
the
reductions
required
by
the
CAIR.

Under
the
NO
X
SIP
Call
requirements
in
section
51.122,
emissions
of
NO
X
for
a
defined
5­
month
ozone
season
(
May
1
through
September
30)
from
sources
that
the
State
has
subjected
to
emissions
control
to
comply
with
the
requirements
of
the
NO
X
SIP
Call
are
required
to
be
reported
by
the
affected
States
to
EPA
every
year.
However,
emissions
of
sources
reporting
directly
to
EPA
as
part
of
the
NO
X
trading
program
are
not
required
to
be
reported
by
the
State
to
EPA
every
year.
The
affected
States
are
also
required
to
report
ozone
season
emissions
and
typical
summer
daily
emissions
of
NO
X
from
all
sources
every
third
year
(
2005,
2008,
etc.).
This
triennial
reporting
process
does
not
have
an
exemption
for
sources
participating
in
the
emissions
trading
programs.

Emissions
reporting
under
the
NO
X
SIP
Call
as
first
promulgated
was
required
starting
for
the
emissions
reporting
year
2002,
the
year
prior
to
the
start
of
the
required
emissions
reductions.
The
reports
are
due
to
EPA
on
December
31
of
the
calendar
year
following
the
inventory
year.
For
example,
emissions
from
all
sources
and
types
in
the
2002
ozone
season
were
required
to
be
reported
on
December
31,
2003.
However,
because
the
Court
which
heard
challenges
to
the
NO
X
SIP
Call
delayed
the
implementation
by
one
year
to
2004,
no
State
was
required
to
start
reporting
until
the
2003
inventory
year.
In
addition,
EPA
recently
promulgated
a
rule
to
subject
Georgia
and
Missouri
to
the
NO
X
SIP
Call
with
an
implementation
date
of
2007.
(
See
69
FR
21604,
April
21,
2004.)
For
them,
emissions
reporting
begins
with
2006.
These
emissions
reporting
requirements
under
the
NO
X
SIP
Call
affect
the
District
of
Columbia
and
20
of
the
28
States
affected
by
the
CAIR.

2(
b)
Practical
Utility/
Users
of
the
Data
Emission
Reporting
Requirements
6
Emissions
data
and
related
information
on
stationary
point
and
nonpoint
sources,
as
well
as
nonroad
mobile
and
onroad
mobile
sources,
are
routinely
used
by
the
OAQPS
and
the
EPA
Regional
Offices
in
carrying
out
a
variety
of
activities.
These
activities
support
regulatory
functions
as
well
as
functions
that
are
more
programmatic
in
nature
such
as
trends
analyses.
Such
projects
include:

°
Evaluation
of
existing
control
strategies,
such
as
the
NO
X
SIP
Call,
for
States
and
larger
areas;

°
Evaluation
of
proposed
control
strategies
for
States
and
larger
areas,
including
applications
of
regional
scale
models;

°
Development
of
national
control
strategies
and
preparation
of
Regulatory
Impact
Analyses
(
RIA);

°
Preparation
and
publication
of
national
summaries
of
emissions
including
trend
analyses;

°
As
a
data
base
to
assist
in
the
identification
of
important
source
categories
for
future
regulation;
and
°
Preparation
of
the
stationary
source
portion
of
a
report
to
Congress
on
SO
2
emissions.
This
report
is
required
by
Section
406
of
the
CAA
and
is
due
on
a
5­
year
cycle
that
began
on
January
1,
1995.
The
report
must
contain
an
inventory
of
national
annual
SO
2
emissions
from
industrial
sources
(
as
defined
in
Title
IV
of
the
CAA).

EPA's
Office
of
Research
and
Development
(
ORD)
uses
emissions
source
data
in
determining
priorities
for
control
technology
research
and
as
a
key
data
component
in
the
application
of
regional
scale
models.
The
EPA's
Regional
Offices
use
emissions
and
other
source
parameters
to
support
source
inspections
and
in
the
analyses
of
the
impact
of
new
or
modified
sources
within
an
area.
EPA's
Emission
Factor
and
Inventory
Group
(
EFIG)
use
the
data
to
assess
and
analyze
trends
in
criteria
pollutant
emissions
over
time.

In
addition
to
supporting
projects
and
initiatives
internal
to
EPA,
both
the
OAQPS
and
the
Regional
Offices
respond
to
numerous
requests
for
reports
on
emission
sources.
Typically
this
is
done
under
the
Freedom
of
Information
Act.
Most
requests
come
from
contractors
and
consultants
involved
in
special
studies;
a
smaller
number
come
from
the
press
and
universities
and
others
involved
in
research.

The
collection
of
emissions
data
specific
to
nonattainment
areas
for
certain
criteria
air
pollutants
is
necessary
to
comply
with
requirements
specified
in
Title
I
of
the
CAA.
States
with
nonattainment
areas
rely
on
current
information
for
point,
nonpoint,
and
mobile
sources
to
revise
their
SIPs
and
to
plan
for
emission
reductions
mandated
by
the
CAA.
In
addition,
a
statewide
inventory
compiled
at
least
every
3
years
for
all
point,
nonpoint,
and
mobile
sources
is
considered
7
to
be
a
key
tool
to
assist
States
in
meeting
CAA
requirements
that
address
emissions
tracking,
compliance
issues,
and
mid­
course
adjustments.
Statewide
emission
inventories
can
be
used
by
States
affected
by
pollution
transport
from
upwind
areas
to
develop
more
efficient
control
strategies
to
meet
the
NAAQS.
Statewide
emission
inventories
that
were
developed
by
EPA
(
the
NEI)
are
being
used
by
the
Regional
Planning
Organizations
(
RPOs)
as
the
starting
point
for
the
development
of
statewide
emission
inventories
used
in
the
regional
haze
program
to
define
control
strategies.

Emission
Trading
Requirements
Permit
applications,
including
proposed
compliance
plans,
will
be
used
by
States
and
EPA
to
issue
operating
permits
and
to
allocate
allowances.
A
permit
application
is
legally
binding
on
the
owners,
operators,
and
designated
representative
of
a
source
until
the
actual
permit
is
issued.
Affected
sources
may
rely
on
the
permit
for
information
on
the
requirements
with
which
they
must
comply.
Because
permit
applications
and
permits
are
public
documents,
they
may
be
used
by
the
public
to
examine
activities
undertaken
by
affected
sources.

Data
from
emissions
monitoring
is
indispensable
to
successful
implementation
of
the
trading
programs
for
two
reasons:

°
The
primary
purpose
of
the
trading
programs
is
to
assist
States
in
the
attainment
of
the
ozone
and
fine
particulate
matter
national
ambient
air
quality
standards
(
NAAQS)
by
reducing
the
adverse
effects
of
the
transport
of
ozone,
ozone
precursors
and
fine
particles
from
upwind
States
by
reducing
annual
emissions
of
sulfur
dioxide
and
nitrogen
oxides;
and
°
EPA
can
only
enforce
the
program
by
comparing,
for
each
affected
unit,
emissions
data
and
the
number
of
allowances
held.

Information
collected
on
allowance
transfers
is
used
by
EPA
or
its
designated
agent
to
track
allowances
for
the
purpose
of
determining
compliance
with
the
NO
X
and
SO
2
Trading
Programs.
Information
on
allowance
transfers
is
also
used
by
participants
in
the
allowance
market
and
the
public
to
evaluate
the
activities
of
affected
sources,
and
by
EPA
for
program
evaluation.

Together,
the
allowance
trading
system,
operating
permits,
and
emissions
data
helps
to
provide
the
accountability
to
allow
the
NO
X
and
SO
2
Trading
Programs
to
function
without
more
stringent
command
and
control
approaches.
8
3.
NONDUPLICATION,
CONSULTATIONS,
AND
OTHER
COLLECTION
CRITERIA
3(
a)
Nonduplication
Emission
Reporting
Requirements
The
EPA
will
allow
the
direct
reporting
of
point
source
data
from
sources
to
EPA
to
satisfy
this
requirement
if
the
sources
are
subject
to
the
monitoring
and
reporting
requirements
of
40
CFR
Part
75.
The
direct
reporting
of
data
from
sources
to
EPA
will
minimize
the
reporting
burden
on
States.
Also,
direct
reporting
will
avoid
duplication
of
effort
for
sources
subject
to
the
Part
75
requirements.

Emission
Trading
Requirements
Reporting
requirements
for
affected
sources
for
the
CAIR
NO
X
and
SO
2
Trading
Programs
are
integrated
with
existing
Part
75
reporting
formats.
The
reporting
formats
are
currently
used
by
Acid
Rain
Program
units
under
Title
IV
of
the
Act
and
units
subject
to
the
NO
X
SIP
Call
Trading
Program
implemented
under
Title
I
of
the
Act.
Thus,
for
units
subject
to
Acid
Rain
or
the
CAIR
quarterly
reporting
requirements,
or
both,
only
one
submission
will
need
to
be
made
on
a
quarterly
basis.
(
NO
X
SIP
Call
trading
program
reporting
will
be
replaced
with
CAIR
reporting.)

3(
b)
Public
Notice
Required
Prior
to
ICR
Submission
to
OMB
Not
required.
This
is
a
rule
related
ICR.

3(
c)
Consultations
Emission
Reporting
Requirements
Because
the
emission
reporting
requirements
for
CAIR
were
developed
after
the
NPR
was
published
on
January
30,
2004
(
69
FR
4566),
consultations
with
the
stakeholder
community
were
necessarily
limited.
Since
the
publication
of
the
SNPR
on
June
10,
2004
(
69
FR
32684),
discussions
have
been
held
with
STAPPA/
ALAPCO
to
clarify
EPA's
logic
in
developing
the
rule
and
to
answer
questions.

Emission
Trading
Requirements
The
requirements
for
the
CAIR
Trading
Programs
have
been
developed
using
both
the
methodology
found
in
existing
trading
programs
as
well
as
consultations
with
interested
parties.
EPA
built
on
the
cap
and
trade
strategy
used
in
the
Acid
Rain
Program,
Ozone
Transport
Commission's
NO
X
Budget
Program,
and
the
NO
X
SIP
Call.
9
EPA
held
two
workshops
with
states
in
the
NO
X
SIP
Call
or
OTC
programs
to
discuss
lessons
learned
in
those
programs.
Additionally,
EPA
has
frequent
interaction
with
affected
sources
and
states
in
the
course
of
implementing
the
Acid
Rain
and
NO
X
SIP
Call
Trading
Programs.
EPA
has
received
comments
following
the
workshops
and
through
these
less
formal
interactions
and
considered
and
incorporated
those
comments
into
the
final
rule
and
ICR.

Finally,
as
part
of
updating
the
ICR
for
the
Acid
Rain
Program
(
Part
75)
monitoring
requirements,
EPA
contacted
various
affected
parties
to
gather
information
on
CEM
capital
costs,
CEM
operation
and
maintenance
costs,
fuel
meter
capital
costs,
and
CEM/
fuelmeter
testing
costs.
That
information
has
been
used
in
this
ICR
where
appropriate.

3(
d)
Effects
of
Less
Frequent
Collection
Emission
Reporting
Requirements
The
submittal
dates
required
for
reporting
of
emissions
data
to
EPA
have
been
established
to
minimize
the
burden
on
State
and
local
agencies,
but
also
to
ensure
that
State
and
local
agencies
are
collecting
timely
and
sufficient
emissions
inventory
data
to
support
their
air
pollution
control
efforts.
A
statewide
inventory
compiled
at
least
every
3
years
for
all
point,
nonpoint,
and
mobile
sources
is
considered
important
to
assist
States
in
meeting
various
CAA
requirements.

If
the
information
collection
were
not
carried
out
every
3
years
for
all
sources
and
annually
for
major
point
sources,
the
EPA
would
not
be
able
to
maintain
a
central,
national
repository
of
emissions
data
from
which
to
extract
updated
information
needed
to
fulfill
EPA
mandates.

If
this
information
collection
were
not
carried
out
annually
for
sources
being
controlled
to
meet
the
SO
2
and
NO
X
budgets,
EPA
would
not
be
able
to
verify
that
emission
reductions
necessary
to
meet
each
State's
SO
2
and
NO
X
emission
budgets
were
being
achieved.

In
addition,
a
triennial
report
of
all
NO
X
sources
statewide
is
vital
in
enabling
EPA
to
track
States'
progress
towards
meeting
the
NO
X
budgets.
Because
the
SO
2
and
NO
X
budgets
prescribed
have
been
deemed
essential
in
order
for
downwind
States
to
attain
the
NAAQS
in
a
timely
manner,
data
collected
less
frequently
would
be
of
little
or
no
use.

Emission
Trading
Requirements
Submittal
of
allowance
trading
information
and
emissions
information
on
an
annual
basis
provides
necessary
feedback
on
the
requirements
of
the
program,
especially
whether
the
program
caps
have
been
maintained.
If
this
information
collection
were
not
carried
out
annually
for
sources
being
controlled
to
meet
the
SO
2
and
NO
X
budgets,
EPA
would
not
be
able
to
verify
that
emission
reductions
necessary
to
meet
each
State's
SO
2
and
NO
X
emission
budgets
were
being
achieved.
Because
the
SO
2
and
NO
X
budgets
prescribed
have
been
deemed
essential
in
order
to
aid
downwind
States
in
attaining
the
NAAQS
in
a
timely
manner,
data
collected
less
frequently
10
would
be
of
little
or
no
use.

Quarterly
collections
of
emissions
data
allows
the
opportunity
to
check
data
for
errors
and
provide
rapid
feedback
on
needed
adjustments
to
data
collection
systems,
and
thereby
promotes
accurate
and
reliable
emissions
data.
For
this
same
reason,
existing
federal
and
state
emission
monitoring
programs
often
require
quarterly
reporting,
or
in
some
cases,
monthly.
Less
frequent
collection,
such
as
semi­
annually
or
annually,
would
increase
the
amount
of
preparation
and
review
time
at
the
end
of
the
reporting
period
both
for
regulated
sources
and
for
EPA.
This
would
slow
down
the
process
for
the
verification
of
compliance.

3(
e)
General
Guidelines
This
ICR
does
not
violate
any
of
OMB's
guidelines
for
information
collections.

3(
f)
Confidentiality
Any
data
that
is
submitted
to
EPA
under
this
rule
will
be
considered
in
the
public
domain
and
cannot
be
treated
as
confidential.

As
required
by
Section
114
of
the
Clean
Air
Act,
estimates
or
measurements
of
emissions
must
be
treated
as
nonconfidential.
Under
Agency
procedures,
data
items
relating
to
the
computation
of
emissions
may
be
identified
as
sensitive
by
a
State
and
are
then
treated
as
"
Statesensitive
by
EPA.
The
potentially
State­
sensitive
items
include
the
following:
Process
rate,
boiler
design
capacity,
emission
estimation
codes,
percent
space
heat,
operating
rate,
and
maximum
operation
rate/
hour.
Where
Federal
and
State
requirements
are
inconsistent,
EPA
Regional
Office
should
be
consulted
for
final
reconciliation.

3(
g)
Sensitive
Questions
This
information
collection
does
not
ask
any
questions
concerning
sexual
behavior
or
attitudes,
religious
beliefs,
or
other
matters
usually
considered
private.

4.
THE
RESPONDENTS
AND
THE
INFORMATION
REQUESTED
4(
a)
Respondents/
Standard
Industrial
Classification
(
SIC)
Codes
The
emissions
data
required
by
the
rule
will
generally
be
submitted
by
State
air
pollution
control
agencies.
Under
the
CERR,
there
are
55
State
and
Territorial
air
pollution
control
agencies,
as
well
as
49
local
air
agencies
that
will
be
subject
to
the
national
reporting
requirements
and
will
be
required
to
compile
and
report
emissions
information
for
large
stationary
point
sources
on
an
annual
basis,
and
for
smaller
point
sources,
stationary
nonpoint
and
mobile
sources
on
a
3­
year
basis.
The
NO
X
SIP
Call
required
21
States
to
report
NO
X
emission
related
data
on
an
11
annual
and
triennial
basis.
Six
states,
Arkansas,
Florida,
Iowa,
Louisiana,
Mississippi
and
Wisconsin
have
been
added
to
the
21
States
subject
to
the
NO
X
SIP
Call.
For
these
six
states,
the
required
emissions
reporting
will
be
expanded
to
include
the
reporting
of
ozone
season
emissions.
In
addition,
the
23
States
and
the
District
of
Columbia
subject
to
the
CAIR
for
reasons
of
PM2.5
must
report
to
EPA
each
year
a
set
of
specified
data
elements
for
all
sources
subject
to
new
controls
adopted
specifically
to
meet
the
CAIR
requirements
related
to
PM2.5,
unless
the
sources
participate
in
an
EPA­
administered
emissions
trading
program.
The
affected
SIC
code
would
be
9511
­
Air
and
Water
Resource
and
Solid
Waste
Management,
which
includes
governmental
environmental
protection
and
control
agencies,
and
pollution
control
agencies.

This
ICR
also
estimates
a
burden
for
affected
industry
sources
to
monitor
SO
2
and
NO
X
mass
emissions
and
demonstrate
compliance
with
SO
2
and
NO
X
control
measures.
Sources
may
report
data
directly
to
EPA
if
a
source
is
required
to
meet
the
monitoring
and
reporting
requirements
of
Part
75.
It
is
expected
that
States
will
choose
to
control
large
electric
utility
sources
to
comply
with
their
SO
2
and
NO
X
emissions
budgets.
Electric
utility
combustion
sources
are
generally
classified
as
either
SIC
4911
­
Electric
Services,
or
4931
­
Electric
and
Other
Services
Combined
[
NAICS
221112
Electric
Power
Distribution].

4(
b)
Information
Requested
Emission
Reporting
Requirements
The
CERR
and
NO
X
SIP
Call
established
the
basic
emission
reporting
requirements.
The
CAIR
changes
some
of
these
requirements
such
that
the
previously
accounted
for
reporting
burden
would
also
change.
Only
the
changes
to
the
CERR
and
NO
X
SIP
Call
reporting
requirements
that
would
change
reporting
burden
are
discussed
here.

Respondent
activities
For
the
emission
inventory
reporting
requirements
of
the
CAIR,
respondent
activities
are
very
similar
to
what
has
been
required
to
satisfy
reporting
under
CERR
and
the
NO
X
SIP
Call.
The
specific
State
respondent
activities
associated
with
the
CAIR
that
are
changes
from
the
existing
CERR
and
NO
X
SIP
Call
requirements
are
outlined
below.

The
one­
time
State
burden
items
include:

°
Read
the
reporting
requirements
of
the
rule;

°
Elimination
of
the
requirement
in
the
NO
X
SIP
Call
for
a
special
all­
sources
report
for
the
year
2007.

Emission
Trading
Requirements
12
This
section
describes
the
data
items
requested
from
affected
sources
for
the
collections
described
in
this
ICR.
This
section
also
defines
the
activities
in
which
respondents
must
engage
to
assemble,
submit,
or
store
these
data
items.

(
i)
Data
Items,
Including
Recordkeeping
Requirements
(
a)
Allowance
Tracking
There
are
several
data
items
required
for
allowance
tracking
activities.
First,
the
affected
source
must
submit
account
certificates
of
representation
for
the
CAIR
designated
representative
and
(
if
desired)
alternate
CAIR
designated
representative.
This
documentation,
the
requirement
for
which
is
found
in
40
CFR
§
§
96.113,
.213
and
.313,
must
include:

Identification
of
the
source
and
unit,
°
Dates
on
which
the
unit
commenced
operation
and
commenced
commercial
operation,

Name
and
contact
information
for
the
CAIR
designated
representative
and
alternate,

A
list
of
the
owners
and
operators
of
each
source
and
unit,
and

A
certification
statement
and
signature
of
the
CAIR
designated
representative
and
alternate.

Certification
applications
are
to
be
kept
for
a
period
of
5
years
pursuant
to
the
general
requirements
imposed
for
Title
V
permitted
facilities.

(
b)
Permitting
The
basic
requirement
for
permitting
is
an
application
for
a
permit
revision
to
a
source's
operating
permit
issued
under
Title
V
of
the
Act.
Although
there
is
some
possibility
that
a
non­
Title
V
source
could
be
affected
under
the
CAIR
Trading
Program,
all
affected
sources
are
assumed
to
be
Title
V
sources
for
purposes
of
this
ICR.
Except
for
the
permit
revision
application,
all
of
the
other
monitoring,
reporting
or
recordkeeping
requirements
associated
with
Title
V
permitting
are
either
part
of
the
baseline
Title
V
requirements
or
are
covered
separately
under
section
4(
c).
Title
V
permit
applications
must
be
kept
for
5
years
pursuant
to
Title
V
recordkeeping
requirements.
In
addition,
coal­
fired
units
that
are
not
part
of
the
Acid
Rain
Program
are
expected
to
have
to
apply
for
a
permit
to
construct
under
Title
I
of
the
Act.

(
c)
Monitoring
and
Reporting
Affected
trading
program
sources
are
required
to
monitor
SO
2
and
NO
X
mass
emissions,
and
record
and
report
emissions
data
using
the
requirements
of
40
CFR
Part
75.
The
emissions
monitoring
requirements
specify
that
affected
sources
must
(
1)
submit
a
monitoring
plan
for
each
affected
unit
at
a
source,
(
2)
submit
data
for
certification
of
each
monitor,
and
(
3)
record
hourly
operational,
pollutant
monitor,
and
flow
monitor
data
for
each
affected
unit
and
submit
quarterly
reports
of
their
emissions
data
to
EPA.
13
Respondents
are
required
by
40
CFR
75.64
to
submit
the
quarterly
SO
2
and
NO
X
mass
emissions
data
electronically,
by
direct
electronic
submission
to
EPA,
and
must
also
include
a
certification
statement
by
the
designated
representative
of
the
unit.
All
monitoring
records
are
to
be
kept
for
three
years,
with
one
possible
exception
under
a
voluntary
option
for
fuel
flowmeter
calibration
testing.

(
ii)
Respondent
Activities
The
primary
tasks
that
will
be
performed
by
trading
program
respondents
to
meet
the
emissions
monitoring
requirements
are
(
1)
completing
and
submitting
appropriate
monitoring
plan
forms
for
each
affected
source
and
each
affected
unit
at
a
source;
(
2)
conducting
tests
to
certify
the
operation
of
monitors,
and
submitting
test
results
to
EPA;
(
3)
recording
hourly
emissions
data
(
this
activity
generally
is
performed
electronically);
(
4)
operation
and
maintenance
activities
associated
with
the
monitoring,
including
quality
assurance
activities;
(
5)
assuring
data
quality,
preparing
quarterly
reports
of
emissions
data
and
submitting
these
reports
to
EPA;
and
(
6)
responding
to
error
messages
generated
by
EPA.
In
addition,
respondents
will
have
to
purchase
the
necessary
monitoring
hardware
and
purchase
the
electronic
data
reporting
software
(
or
software
upgrades).

5.
THE
INFORMATION
COLLECTED
 
AGENCY
ACTIVITIES,
COLLECTION
METHODS,
AND
INFORMATION
MANAGEMENT
5(
a)
Agency
Activities
Emission
Reporting
Requirements
The
EPA
activities
associated
with
the
rule
include:

°
Receiving,
reviewing,
and
storing
emission
inventory
data
submitted
by
each
State;

°
Processing
and
updating
data
submitted
by
States,
including
performing
quality
assurance
of
data,
and
coordination
of
efforts
to
resolve
errors
and
anomalies;
and
°
Fulfilling
information
requests.

Emission
Trading
Requirements
The
major
EPA
activities
related
to
the
CAIR
Trading
Program
include
(
1)
maintenance
and
administration
of
the
SO
2
and
NO
X
allowance
tracking
systems,
(
2)
reviewing
permit
applications,
(
3)
reviewing
monitoring
plans
and
certification
applications,
(
4)
processing,
reviewing
and
evaluating
reports
of
quarterly
emissions
data
from
affected
units,
(
5)
calculating/
reviewing
annual
emissions
from
affected
sources,
and
(
6)
reviewing
total
annual
emissions
data
submitted
to
track
14
each
State's
progress
toward
meeting
its
budgets
and
creating
a
summary
report
of
emissions.
EPA
will
use
a
computer
system
to
track
and
maintain
monitoring
and
emissions
information.
EPA
will
also
answer
respondent
questions
and
conduct
audits
of
data
submissions.

5(
b)
Collection
Methodology
and
Management
Emission
Reporting
Requirements
The
EPA
has
establishing
a
central
repository
of
inventory
data
for
all
States
termed
the
National
Emissions
Inventory
(
NEI)
database.
Emissions
inventory
data
reported
electronically
will
be
stored
in
the
NEI
database
and
used
by
the
EPA
and
by
other
States
for
air
modeling,
tracking
progress
in
meeting
CAA
requirements,
setting
policy
and
answering
questions
from
the
public.

The
EPA
has
created
and
maintains
the
NEI
database
as
a
central
repository
of
inventory
data
for
all
States,
but
the
data
must
be
supplied
by
the
States
in
electronic
form.
The
EPA
currently
requires
that
States
use
the
NEI
Input
Format
(
NIF)
for
electronic
data
reporting
(
EDR).

Emission
Trading
Requirements
To
ensure
consistency
region
wide
and
to
expedite
data
entry,
EPA
requires
that
standard
formats
used
for
Part
75
reporting
be
used
to
submit
the
information
collected
for
the
CAIR
Trading
Programs.

Several
computer
systems
and
associated
databases
have
been
developed
to
(
1)
track
allowances,
(
2)
record
quarterly
emissions
monitoring
data,
and
(
3)
calculate
the
number
of
allowances
to
be
deducted
each
year.
The
systems
and
databases
are
designed
to
coordinate
the
information
for
easy
access
and
use
by
the
Agency,
states,
regulated
community,
and
the
public.

The
EPA
also
has
established
a
Clean
Air
Markets
Page
on
the
Internet,
which
includes
detailed
information
collected
from
emissions
reports.
Those
without
access
to
the
Internet
may
use
the
Clean
Air
Markets
Hotline
to
request
information,
including
summary
reports.
The
Agency
expects
to
rely
on
these
electronic
means
to
disseminate
information
about
the
CAIR
Trading
Program
as
the
program
is
implemented.

5(
c)
Small
Entity
Flexibility
Emission
Reporting
Requirements
State
and
Territorial
control
agencies
are
not
considered
to
be
small
entities.
According
to
EPA's
ICR
Handbook,
OMB's
definition
for
a
small
entity
includes
small
governmental
jurisdictions
with
populations
of
less
than
50,000.
According
to
1999
population
data
from
the
U.
S.
Census
Bureau,
no
State
or
Territory
has
a
population
below
this
threshold.
However,
certain
local
air
pollution
agencies
may
be
in
charge
of
individual
counties
or
multi­
county
areas
15
whose
population
is
less
than
50,000.

These
local
agencies
have
had
experience
compiling
their
2002
inventories
that
were
submitted
to
EPA
in
June
2004
as
required
by
the
CERR.
The
emission
reporting
requirements
in
CAIR
are
estimated
to
result
in
a
net
burden
reduction
for
the
reporting
agencies.

Emission
Trading
Requirements
The
CAIR
Trading
Program
includes
fossil
fuel­
fired
units
(
stationary
boilers,
combustion
turbines,
and
combined
cycle
systems)
that
serve
an
electrical
generator
of
capacity
greater
than
25
MWe.
Units
with
a
lower
capacity
are
not
included
because
of
the
high
cost
of
monitoring
emissions
from
these
sources
and
the
de
minimis
nature
of
their
emissions.

There
is
one
small
unit
provision
applicable
to
the
CAIR
Trading
Program
which
provides
for
reduced
monitoring.
The
low
mass
emissions
provisions
(
40
CFR
75.19)
allows
optional
reduced
monitoring,
quality
assurance,
and
reporting
requirements
for
units
that
combust
natural
gas
and/
or
fuel
oil
and
that
emit
no
more
than
100
tons
of
NO
X
annually
provided
that
no
more
than
50
tons
of
NO
X
is
emitted
in
the
ozone
season
(
May
1
 
September
30)
and
no
more
than
25
tons
of
SO
2
annually
and
that
calculate
no
more
than
the
same
amount
based
on
specified
procedures
for
calculating
and
reporting
emissions.
Utilities
that
qualify
are
not
required
to
keep
monitoring
equipment
installed
on
(
or
conduct
fuel
sampling
for)
low
mass
emissions
units,
nor
are
they
required
to
perform
quality
assurance
or
quality
control
tests.
Moreover,
emissions
reporting
requirements
are
significantly
simplified
for
these
units.

Even
if
a
gas­
or
oil­
fired
unit
does
not
qualify
for
the
"
low
mass
emissions
unit"
provisions,
the
monitoring
provisions
of
Part
75
do
allow
for
the
use
of
alternative
methods
to
determine
emissions.
As
discussed
in
the
Regulatory
Impact
Analysis
(
RIA)
of
the
final
Acid
Rain
Implementation
Regulations
(
October
19,
1992),
smaller
utilities
are
more
likely
to
be
dependent
on
these
oil­
and
gas­
fired
units,
especially
very
small
utilities
(
see
p.
5­
14
of
that
RIA
document).
This
analysis
remains
relevant
to
this
rulemaking.

5(
d)
Collection
Schedule
There
is
one
requirement
in
the
CAIR
that
will
impact
the
reporting
schedule
for
the
States.
EPA
is
deleting
the
requirement
under
the
NO
X
SIP
Call
that
affected
States
must
report
an
emission
inventory
for
2007
which
would
have
been
due
on
December
31,
2008.

The
industry
reporting
requirements
for
CAIR
will
begin
in
2008.
There
may
be
some
costs
that
occur
prior
to
the
deadlines,
but
for
the
purposes
of
this
quantification
begin
in
2008.
Even
though
some
of
the
costs
occur
outside
of
this
ICR
timeframe,
the
quantification
reflects
the
estimated
cost
of
the
program
at
full
implementation.
16
6.
ESTIMATING
THE
BURDEN
AND
COST
OF
THE
COLLECTION
6(
a)
Estimating
Respondent
Burden
Emission
Reporting
Requirements
The
respondent
burden
for
complying
with
the
reporting
requirements
of
the
rule
is
estimated
incremental
to
the
burden
associated
with
existing
annual
inventory
and
periodic
inventory
reporting
requirements.

In
general,
States
already
have
mechanisms
in
place
for
reporting
emissions
data
to
EPA
under
the
existing
CERR
and
NO
X
SIP
Call
inventory
requirements.
The
changes
to
the
existing
reporting
requirements
are
specified
in
Section
4(
b)(
i)
of
this
supporting
statement.

Other
ongoing
State
activities
that
support
existing
inventory
reporting
requirements
include:

°
Collecting
emissions
data
and
other
associated
information;
°
Training
staff
in
coding
and
submissions
techniques;
°
Quality­
assuring
emissions
data
and
resolution
of
errors
and
anomalies
identified
by
EPA;
°
Maintaining
records
associated
with
data
submitted
by
sources;
and
°
Preparing
and
submitting
required
inventory
data
items
in
approvable
format.

The
following
sections
discuss
the
assumptions
used
to
develop
burden
hour
estimates
for
one­
time
only
activities
and
triennial
activities.
Table
6­
1
lists
the
burden
items
included
under
these
categories,
and
presents
their
associated
burden
hours
for
1
year.
In
general,
managerial
time
was
estimated
to
be
5
percent
of
technical
staff
time.
Burden
hours
and
associated
costs
were
estimated
for
the
first
3­
year
period
that
the
affected
States
would
have
to
start
reporting
emissions
data
to
EPA.
In
this
case,
that
period
corresponds
to
the
years
2006,
2007,
and
2008.
Table
6­
2
shows
the
required
activities
that
a
State
must
perform
each
year,
beginning
in
the
year
2006
through
2008.
Table
6­
3
presents
the
State
and
local
respondent
annual
burden
hours
and
costs
by
activity.

One­
time
activities
The
time
for
States,
Territorial,
and
local
agencies
to
read
and
interpret
the
reporting
requirements
of
the
rule
was
estimated
to
be
1
hour
for
technical
staff
and
1
hour
for
managerial
staff.

The
remaining
one­
time
activity
is
the
elimination
of
the
requirement
in
the
NO
X
SIP
Call
for
a
special
all­
sources
report
for
the
year
2007.
This
supporting
statement
estimates
burden
using
methods
similar
to
the
ones
used
for
the
CERR
and
the
NO
X
SIP
Call.
Thus
for
the
NO
X
SIP
Call
there
are
22
respondents
(
21
states
plus
the
District
of
Columbia).
This
decrease
in
burden
was
17
estimated
by
first
estimating
the
burden
for
each
respondent,
then
multiplying
by
the
number
of
respondents.
The
burden
per
respondent
was
estimated
in
the
NO
X
SIP
Call
ICR
supporting
statement
to
be
8
hours
of
technical
staff
time,
and
0.4
hour
of
managerial
staff
time.

Triennial
activities
The
CAIR
adds
six
additional
states
(
AR,
FL,
IO,
LA,
MS,
and
WI)
that
would
be
subject
to
the
NO
X
SIP
Call
reporting
requirements.
These
States
would
have
the
additional
burden
of
having
to
estimate
and
report
NO
X
emissions
for
the
five
month
ozone
season
in
addition
to
the
existing
requirement
for
reporting
emissions
of
all
pollutants
for
the
full
year.
This
requirement
is
to
be
effective
for
the
2008
inventory
year.
For
these
States,
EPA
estimates
that
each
respondent
would
spend
24
hours
of
technical
staff
time
and
1
hour
of
managerial
staff
time.

There
is
an
additional
CAIR
change
that
would
only
impact
triennial
burden.
The
CAIR
changes
the
requirement
for
the
reporting
of
summer
day
emissions.
CAIR
requires
the
reporting
of
summer
day
emissions
only
from
States
that
have
ozone
nonattainment
areas,
or
which
can
be
shown
to
make
a
significant
contribution
to
ozone
formation
in
another
State,
instead
of
from
all
States.
This
will
result
in
a
small
reduction
in
burden
which
was
not
estimated.

Emission
Trading
Requirements
This
section
estimates
the
paperwork
burden
and
cost
of
submitting
permit
applications,
allowance
tracking
and
transfer
materials
(
including
applications
for
early
reduction
credits),
yearend
compliance
certifications,
submittal
of
monitoring
plans,
obtaining
certification
of
each
monitoring
system,
conducting
monitor
quality
assurance
activities,
and
recording
and
reporting
data
from
CEM
systems
(
or
approved
alternatives).

To
estimate
the
burden
and/
or
cost
of
each
incidence
of
the
various
rule
revisions,
EPA
had
available
prior
estimates
of
the
costs
of
various
activities,
estimates
provided
by
affected
utilities
in
comments
to
the
Agency,
and
estimates
based
on
the
Agency's
experience
in
implementing
the
existing
trading
programs.

For
the
purposes
of
this
analysis,
the
trading
sources
are
grouped
into
the
following
categories:

Trading
units
located
in
a
PM/
O
3
State
in
the
NO
X
SIP
Call
Region
(
AL,
IL,
IN,
KY,
MD,
MI,
MO,
NY,
NC,
OH,
PA,
SC,
TN,
VA,
WV
and
DC)
°
Trading
units
located
in
a
PM/
O
3
State
not
in
the
NO
X
SIP
Call
Region
(
FL,
IO,
LA,
MS,
and
WI)
°
Trading
units
located
in
a
PM
State
not
in
the
NO
X
SIP
Call
Region
(
TX,
MN,
and
GA)
°
Trading
units
located
in
an
O
3
State
in
the
NO
X
SIP
Call
Region
(
CT,
MA,
DE,
and
NJ)
°
Trading
units
located
in
an
O
3
State
not
in
the
NO
X
SIP
Call
Region
(
AR)
18
Each
of
these
categories
has
sources
that
are
subject
to
the
Acid
Rain
Program,
which
requires
monitoring
of
SO
2
and
NO
X.
(
Note:
There
are
not
any
NO
X
SIP
Call
States
that
are
PM­
only
States
for
CAIR.)

The
CAIR
Trading
Program
requires
all
affected
sources
to
monitor
a
NO
X
emission
rate,
SO
2
emission
rate
and
heat
input
in
order
to
determine
NO
X
mass
emissions
and
SO
2
mass
emissions.
Affected
gas­
and
oil­
fired
units
may
elect
to
use
a
SO
2
emissions
rate
CEM
and
a
fuel
flowmeter.
In
addition,
peaking
units
that
burn
natural
gas
and/
or
fuel
oil
may
use
an
alternative
method
for
calculating
NO
X
emission
rates.
EPA
will
also
allow
certain
low
mass
emissions
units
to
use
assumed
emissions
factors
together
with
operational
data
to
calculate
emissions.

For
purposes
of
this
ICR,
it
is
important
that
the
burdens
and
costs
be
calculated
only
in
terms
of
incremental
impacts
for
units
located
in
NO
X
SIP
Call
States
or
subject
to
the
Acid
Rain
Program.
The
NO
X
SIP
Call
Program
is
a
region
wide
cap­
and­
trade
program
that
targets
utility
and
large
industrial
combustion
sources
to
facilitate
NO
X
emissions
reductions
in
the
NO
X
SIP
Call
region.
The
NO
X
SIP
Call
States
in
the
CAIR
region
include
Alabama,
Connecticut,
Delaware,
Illinois,
Indiana,
Kentucky,
Maryland,
Michigan,
Missouri,
New
Jersey,
New
York,
North
Carolina,
Ohio,
Pennsylvania,
Rhode
Island,
South
Carolina,
Tennessee,
Virginia,
West
Virginia
and
the
District
of
Columbia.
Similarly,
States
not
in
the
NO
X
SIP
Call
region
have
existing
requirements
for
CEMS
in
some
cases
that
a
unit
will
already
be
subject
to.
Thus,
it
should
be
noted
that
the
labor
hour
and
cost
estimates
per
unit
identified
in
this
document,
represent
the
weighted
average
burden
and
cost
for
all
units
and
do
not
represent
the
actual
burden
and
cost
for
a
particular
unit.

The
following
discussion
highlights
some
of
the
basic
differences
for
the
categories
of
units.
Included
in
this
discussion
is
the
consideration
of
monitoring
and
reporting
that
is
done
by
many
of
these
sources
under
the
Acid
Rain
Program.

Trading
units
in
PM/
O
3
States
in
the
NO
X
SIP
Call
region
will
have
the
smallest
overall
impact
with
regard
to
monitoring
and
reporting.
Acid
Rain­
affected
units
are
already
monitoring
and
reporting
both
SO
2
and
NO
X
emissions
on
a
year
round
basis
and
will
not
incur
additional
burdens
(
or
capital
and
operating
and
maintenance
costs)
as
a
result
of
the
CAIR
since
they
have
already
installed
and
are
operating
a
CEMS
(
or
approved
alternative)
and
meet
Part
75
requirements
for
both
SO
2
and
NO
X.
Sources
that
are
not
affected
by
the
Acid
Rain
Program
are
already
monitoring
and
reporting
NO
X
emissions
during
the
O
3
season.
These
sources
will
need
extend
their
monitoring
and
reporting
throughout
the
year
and
add
SO
2
monitoring
for
CAIR.
Additionally,
these
units
will
have
a
small
additional
burden
associated
with
permit
applications
and
certain
allowance
transactions.

Trading
units
in
PM/
O
3
States
not
in
the
NO
X
SIP
Call
region
and
trading
units
in
PM
States
not
in
the
SIP
Call
are
similarly
impacted
by
CAIR
reporting
requirements.
These
States
have
Acid
Rain
sources
that
are
already
monitoring
and
reporting
SO
2
emissions
and
NO
X
rates
on
a
year
round
basis
and
in
accordance
with
Part
75.
These
sources
will
need
to
report
NO
X
19
emissions
year
round
and
for
the
PM/
O
3
States
also
include
an
ozone
season
NO
X
total.
Because
these
sources
are
measuring
and
reporting
SO
2
mass
emissions,
which
requires
heat
input
measurement
that
can
be
used
with
the
NO
X
emission
rate
information
to
calculate
NO
X
mass
emissions.
Therefore,
these
sources
would
need
to
make
minor
modifications
to
their
reporting
practices
in
order
to
report
NO
X
mass
emissions
for
this
program,
but
would
not
likely
need
to
purchase
additional
monitoring
equipment.
The
non­
Acid
Rain
sources
in
these
categories
will
incur
the
largest
impact
with
regard
to
monitoring
since
these
are
the
sources
that
currently
are
not
required
to
monitor
according
to
Part
75.
Monitoring
will
depend
on
the
type
of
fuel
and
the
amount
of
time
the
unit
is
operated.
Therefore,
the
costs
will
vary
depending
on
what
monitoring
alternative
is
appropriate
for
the
unit
and
what
monitoring
requirements
apply
to
the
unit
under
other
regulatory
programs.

Trading
units
in
O
3
States
that
are
in
the
NO
X
SIP
Call
region
will
have
no
additional
monitoring
and
reporting
burden
since
they
are
already
complying
with
the
NO
X
monitoring
requirements
in
Part
75
in
the
ozone
season.

Trading
units
in
O
3
States
that
are
not
in
the
NO
X
SIP
Call
region
will
need
to
install
NO
X
monitoring
systems
to
comply
with
Part
75
in
the
ozone
season.

Sources
will
be
subject
to
the
CAIR
Trading
Programs
NO
X
monitoring
and
reporting
requirements
in
2008
and
the
SO
2
monitoring
and
reporting
requirements
in
2009.
Compliance
with
the
emissions
caps
 
with
allowance
holding
requirements­­
begins
in
2009
for
NO
X
and
2010
for
SO
2.
Table
6­
4
shows
the
burden
associated
with
monitoring
SO
2
and
NO
X
under
CAIR
trading
programs
at
the
various
types
of
sources.

The
primary
tasks
performed
by
owners
and
operators
of
affected
units
are
(
1)
permitting,
(
2)
monitoring,
recording,
and
reporting
emissions
data,
(
3)
allowance
trading
activities
and
(
4)
submittal
of
the
year
end
compliance
certification.

(
i)
Permitting.

Each
affected
entity
will
have
to
submit
a
permit
revision
application
to
include
in
the
source's
Title
V
permit
the
necessary
conditions
related
to
compliance
with
the
CAIR
Trading
Programs.
The
Agency
believes
that
this
application
should
be
relatively
routine,
and
that
a
standard
method
of
incorporating
the
requirements
by
reference
or
a
standard
set
of
permit
conditions
will
be
available.
The
Agency
estimates
that,
on
a
per
unit
basis,
about
4
managerial
hours
will
be
required
to
revise
the
Title
V
permit.

Some
sources
will
also
be
required
to
construct
additional
facilities,
and
therefore
will
need
to
complete
a
permit
to
construct
application.
The
Agency
estimates
that
this
requirement
will
be
necessary
for
all
coal­
fired
units
that
are
not
in
the
Acid
Rain
Program
and
that
the
task
will
take
20
hours
of
managerial
and
20
hours
of
technician
time,
per
permit.
20
(
ii)
Monitoring.

For
monitoring,
the
burdens
differ
greatly
based
on
the
amount
and
type
of
monitoring
the
unit
is
already
subject
to
and
the
particular
subtask
of
monitoring
being
conducted.
The
specific
elements
of
burden
are:

Start­
up
Activities.
A
large
part
of
start­
up
activities
involves
capital
and
test
contractor
costs.
However,
the
owner
or
operator
will
incur
some
labor
burden
for
these
activities,
as
applicable.
For
Acid
Rain
units
in
NO
X
SIP
Call
States,
CAIR
imposes
no
start­
up
burdens
beyond
existing
programs.
For
Acid
Rain
units
in
other
States,
the
owner
or
operator
will
incur
some
small
amount
of
burden
associated
with
DAHS
upgrades.
For
the
non­
Acid
Rain
units
in
PM/
O
3
States
that
are
in
the
NO
X
SIP
Call
region,
the
burdens
reflect
arranging
for
SO
2
CEMS
purchase
(
as
required)
and
oversight
of
the
certification
process.
The
non­
Acid
Rain
units
in
O
3
States
not
in
the
NO
X
SIP
Call
region
would
need
to
purchase
and
certify
NO
X
monitoring
systems
and
the
non­
Acid
Rain
and
the
non­
Acid
Rain
units
in
PM
States
that
are
not
part
of
the
NO
X
SIP
Call
region,
burdens
reflect
purchase
and
certification
of
NO
X
and
SO
2
monitoring
systems.

Regulatory
Review.
The
ICR
includes
an
allocation
of
time
for
the
managerial
and
technical
staff
to
review
the
regulatory
requirements
and
the
EDR
formats
and
instructions.
The
units
not
in
the
Acid
Rain
Program
or
part
of
the
NO
X
SIP
Call
will
have
a
burden
similar
to
that
estimated
for
Acid
Rain
Program
units
in
the
Acid
Rain
Program
ICR
­­
24
hours
of
managerial
time
and
24
hours
of
technician
time
in
year
one
of
the
program
and
4
hours
each
for
managerial
and
technician
time,
per
year,
after
year
one.
The
burden
estimates
for
all
Acid
Rain
units
and
units
in
the
NO
X
SIP
Call
is
reduced
because
of
the
similar
Acid
Rain
and
NO
X
SIP
Call
requirements.
The
estimates
for
these
units
are
5
hours
of
managerial
time
and
5
hours
of
technician
time
in
year
one
and
1
hour
each
per
year
after
year
one.

Response
to
Error
Messages.
The
Agency
provides
feedback
to
affected
sources
for
errors
that
are
found
in
monitoring
plans
or
other
reports.
The
Agency
estimates
that
for
each
unit
not
in
either
the
Acid
Rain
or
NO
X
SIP
Call,
an
owner
or
operator
will
spend
approximately
4
hours
of
managerial
time
and
8
hours
of
technician
time
responding
to
these
error
messages
each
year.
(
The
time
for
the
other
sources
is
accounted
for
in
other
ICRs.)

DAHS
Debugging.
Based
on
experience
with
the
Acid
Rain
Program,
some
effort
will
be
involved
to
fix
problems
with
the
DAHS
software
used
to
report
in
the
Part
75
formats.
This
burden
is
assumed
to
fall
primarily
on
units
that
are
not
affected
under
either
the
Acid
Rain
or
NO
X
SIP
Call
programs.
Consistent
with
the
existing
Part
75
ICR,
the
Agency
estimates
that
about
16
managerial
and
88
technician
hours
will
be
spent
on
this
task
in
the
first
year
of
implementation,
and
then
1
managerial
and
4
technician
hours
will
be
required
in
the
second
and
subsequent
years
of
implementation.

Monitoring
Plans.
The
regulations
require
submittal
of
monitoring
plans.
Because
most
21
of
the
monitoring
plan
elements
are
now
part
of
the
EDR
format,
the
effort
involved
in
developing
and
maintaining
the
plans
are
incorporated
into
the
overall
reporting
burden
estimate.

Monitor
Certification/
Recertification.
Initial
certification
burdens
and
costs
for
new
monitoring
equipment
are
addressed
above
under
start­
up
activities
since
these
costs
are
often
part
of
the
overall
purchase
expense
for
the
equipment.
For
some
non
Acid
Rain
units,
however,
there
will
be
burdens
associated
with
certifying
existing
monitors
used
under
other
programs
for
this
program,
as
well
as
burdens
for
recertification
to
the
extent
a
change
in
a
monitoring
system
requires
recertification.
EPA
estimates
that
approximately
10%
of
all
units
will
have
to
recertify
each
year
following
the
year
in
which
the
initial
certification
occurs.
The
ICR
incorporates
a
labor
burden
estimate
generally
consistent
with
existing
Agency
models
for
the
labor
burdens
associated
with
certification.
However,
note
that
the
ICR
reduces
the
labor
hours
for
this
activity
to
avoid
double
counting
hours
that
are
already
accounted
for
in
the
quality
assurance
activity
area
(
see
the
following
subsection).
The
double
counting
would
occur
because
a
portion
of
the
labor
incurred
for
the
certification
or
recertification
event
replaces
the
labor
burden
that
is
generally
allocated
to
the
annual
relative
accuracy
test
audit
(
RATA)
in
the
year
in
which
the
certification
event
occurs.

Quality
Assurance.
Quality
assurance
(
QA)
activities
and
other
routine
maintenance
for
monitoring
systems
is
the
largest
burden
item
under
the
CAIR
Trading
Programs.
These
requirements
generally
include
daily,
quarterly
and
annual
QA
requirements,
depending
on
the
monitoring
approach
being
used.
For
reporting
units
that
use
a
CEMS,
the
Agency
has
assumed
a
per
unit
labor
burden
based
on
a
variety
of
sources,
including
the
existing
Acid
Rain
Program
ICR,
the
existing
NO
X
SIP
Call
ICR,
information
provided
by
Acid
Rain
Program
sources,
a
CEM
cost
model
developed
by
EPA,
and
comments
submitted
in
response
to
the
section
110
SIP
Call
for
ozone
transport.
For
units
that
rely
on
alternative
methodologies,
reduced
labor
burden
estimates
apply
because
the
quality
assurance
activities
for
the
excepted
methods
are
less
than
for
a
CEMS.
Consistent
with
the
existing
Acid
Rain
Program
ICR,
the
labor
burden
is
expected
to
be
almost
entirely
technician
labor.

Quarterly
Reports.
Tasks
performed
by
utilities
in
preparing
quarterly
reports
include:
(
1)
assuring
the
quality
of
the
data,
(
2)
preparing
the
quarterly
report,
(
3)
revising
the
monitoring
plan,
if
necessary,
(
4)
preparation
of
hard
copy
documentation
accompanying
the
quarterly
reports,
and
managerial
review.
The
existing
Acid
Rain
program
ICR
was
used
as
the
basis
for
these
estimates.

Fuel
Sampling.
To
calculate
heat
input
where
the
source
is
using
the
fuel
flowmeter
option
for
an
oil
or
gas­
fired
unit,
the
source
must
obtain
gross
calorific
value
data
from
sampling
in
accordance
with
Appendix
D
of
Part
75.
For
purposes
of
this
ICR,
it
is
assumed
that
the
GCV
data
would
be
collected
as
part
of
standard
business
operating
procedures
to
assure
compliance
with
contractual
specifications.
Thus
no
additional
fuel
sampling
burdens
or
costs
should
be
incurred.

(
iii)
Allowance
transaction
activities.
22
The
Agency
anticipates
the
average
number
of
additional
allowance
transactions
will
be
approximately
2,500
per
year
beginning
in
2008.
A
portion
of
all
units
will
likely
conduct
transactions
in
each
year
solely
as
a
result
of
this
program.
The
Agency
believes
that
each
transaction
will
involve
about
1
hour
each
of
managerial
and
technician
time.

6(
b)
Estimating
Respondent
Costs
Table
6­
3
presents
state
and
local
respondent
annualized
hours
and
costs
for
each
information
collection
activity.
To
estimate
annualized
hours
and
costs
for
one­
time
and
triennial
activities,
the
burden
estimate
is
divided
by
3
to
estimate
the
burden
over
a
3­
year
period.
Table
6­
4
summarizes
the
annual
industry
respondent
costs.
The
following
discussion
describes
how
the
costs
were
derived.

(
i)
Estimating
Labor
Costs
For
this
ICR,
the
labor
rate
used
for
technical
staff
at
State
agencies
is
$
34.36
per
hour,
and
the
labor
rate
for
managerial
employees
at
State
agencies
is
$
41.63.
These
labor
rates
include
benefits
and
overhead.
These
labor
rates
are
derived
from
data
shown
on
the
U.
S.
Department
of
Labor,
Bureau
of
Labor
Statistics,
web
site
at
http://
stats.
bls.
gov/
news.
release/
ecec.
toc.
htm.
Wage
and
salary
rates
are
given
in
Employee
Costs
for
Employee
Compensation
"
Table
3.
State
and
local
government,
by
major
occupation
and
industry
group
(
March
2004)."
The
wage
and
salary
rates
from
this
table
account
for
benefits
provided
to
workers.
When
considering
both
technical
and
managerial
hours,
labor
costs
for
State
and
Territorial
agencies
are
estimated
to
be
$
46,000
per
year
per
respondent,
and
labor
costs
for
local
agencies
are
estimated
to
be
$
30,000
per
year
per
respondent
for
the
emissions
reporting
requirements.

In
estimating
labor
costs,
EPA
used
the
following
amounts:
$
73.42
per
hour
for
managers
and
$
50.44
per
hour
for
technicians.
These
rates
were
used
in
the
existing
Acid
Rain
Program
ICR
using
the
Bureau
of
Labor
Statistics
Employment
Cost
Index.

Federal
Agency
labor
rates
were
assumed
to
be
$
43.44
per
hour.
This
labor
rate
was
derived
from
the
federal
government's
2004
General
Schedule
published
by
the
U.
S.
Office
of
Personnel
Management
using
the
factors
in
the
following
table.

Determination
of
Federal
Wage
Rates
Annual
Salary
of
Technical
Staff,
GS
11
Step
3
$
47,078
Annual
Cost
of
Supervisory
Staff,
GS
13,
step
3
$
67,099
Factor
(
1/
11)
0.09
$
6,039
23
Annual
Cost
of
Support
Staff,
GS
6,
step
6
$
31,311
Factor
(
1/
8)
0.13
$
4,070
Annual
Applicable
Salary
of
Permit
Staff
$
57,187
Benefits
(
at
16%)
$
9,150
Sick
Leave/
Vacation
(
at
10%)
$
5,719
General
Overhead
(
at
32%)
$
18,300
Total
Cost
per
FTE
$
90,366
Total
Hourly
Cost
(
total
per
FTE
dividend
divided
by
2,080
hours
per
year)
$
43.44
(
ii)
Estimating
Capital
and
Operations
and
Maintenance
Costs
Emission
Reporting
Requirements
EPA
has
concluded
that
the
Capital
and
Operations
and
Maintenance
Costs
estimated
under
the
CERR
and
the
NO
X
SIP
Call
are
sufficient
to
accommodate
the
modest
changes
in
reporting
burden
for
the
CAIR.
Therefore,
no
estimate
of
Capital
and
Operations
and
Maintenance
Costs
were
made
for
this
ICR.

Emission
Trading
Requirements
Capital/
start­
up
costs
include
the
cost
of
installing
required
CEMS
or
alternatives.
Operation
and
maintenance
costs
(
exclusive
of
labor
costs)
reflect
ongoing
costs
to
a
unit
and
include
both
contractor
costs
for
the
required
recertification,
diagnostic,
and
quality
assurance
(
QA)
testing,
and
other
direct
maintenance­
related
expenses
(
e.
g.,
spare
parts
and
calibration
gases).
These
cost
estimates
have
been
derived
from
EPA
CEM
cost
models,
existing
ICRs,
Agency
staff
experience
under
the
Acid
Rain
and
NO
X
SIP
Call
programs,
and
supplemental
estimates
provided
by
affected
utilities
and
others
related
to
the
various
cost
items.

Acid
Rain
affected
units
are
not
expected
to
incur
any
non­
labor
costs
associated
with
this
program.
The
total
non­
labor
cost
for
capital/
start­
up
items
is
estimated
at
$
4,000
per
unit
for
most
Acid
Rain
units
that
are
not
in
the
NO
X
SIP
Call
region
(
to
account
for
a
DAHS
upgrade).
For
non
Acid
Rain
units
in
the
NO
X
SIP
Call
region,
most
units
will
require
a
DAHS
upgrade,
estimated
at
$
4,000
per
unit
and
an
SO
2
analyzer
for
$
42,525.
For
non
Acid
Rain
units
not
in
the
NO
X
SIP
Call
region,
the
units
using
fuel
flowmeters
are
expected
to
incur
DAHS
and
SO
2
analyzer
costs,
while
the
other
units
will
require
some
combination
of
a
NO
X,
diluent,
SO
2
and/
or
24
flow
CEMS.
The
costs
for
these
units
ranges
from
$
15,000
to
$
192,000.
The
variance
is
due
to
the
monitoring
methodology
used
and
what
monitoring
equipment
may
already
be
in
place
at
the
unit.

Note
that
testing
contractor
costs
for
certification,
recertification
and
annual
relative
accuracy
test
audits
(
RATAs)
are
presented
as
other
direct
costs
and
are
not
converted
to
equivalent
source
labor
hours.
This
approach
is
consistent
with
the
common
business
practice
for
obtaining
outside
contractors
to
conduct
certification/
recertification
tests
and
annual
RATAs.
For
initial
certification,
the
certification
test
costs
are
commonly
bundled
with
equipment
purchase
contracts,
according
to
information
provided
by
a
range
of
CEMS
equipment
vendors.
For
RATAs
that
are
conducted
either
as
part
of
the
annual
quality
assurance
requirements
or
as
part
of
recertification,
industry
contacts
have
indicated
that
RATA
testing
is
usually
performed
under
a
fixed
price
contract
basis,
except
for
travel
costs
that
may
be
billed
on
an
hourly
basis
beyond
the
basic
contract
cost.

The
Agency
also
notes
that
this
ICR
does
not
include
a
cost
for
the
purchase
of
monitoring
equipment
for
all
affected
units.
Many
sources
covered
by
the
CAIR
Trading
Programs
are
already
required
to
have
CEMS
under
other
regulatory
programs.
Therefore,
to
the
extent
that
no
new
equipment
is
needed
by
these
sources,
capital
costs
are
not
included
because
those
costs
were
included
in
the
ICRs
of
those
other
programs.
Thus,
the
capital
and
other
costs
included
in
Table
6­
4
represent
weighted
average
costs
for
each
respondent,
not
the
total
individual
cost
for
any
particular
respondent.

(
iii)
Capital/
Start­
up
vs.
Operating
and
Maintenance
(
O
&
M)
Costs
Capital
costs
for
emissions
trading
reflect
one­
time
costs
for
purchase
of
equipment
which
will
be
used
over
a
period
of
years.
Conversely,
operating
and
maintenance
costs
are
those
costs
which
are
incurred
on
an
annual
or
other
scheduled
basis.
For
instance,
costs
associated
with
quality
assurance
activities,
such
as
spare
parts
or
contractor
costs
for
work,
will
be
incurred
on
an
annual
basis.

(
iv)
Annualizing
Capital
Costs
The
relevant
capital
costs
for
the
emissions
trading
portion
of
this
ICR
were
annualized
at
a
rate
of
7%,
(
i.
e.,
the
annualized
capital
cost
was
calculated
assuming
money
to
purchase
the
capital
equipment
was
borrowed
at
a
7%
annual
interest
rate).
The
cost
of
the
loan
was
amortized
over
the
life
of
the
loan
to
repay
original
borrowed
amount
plus
interest.
The
result
is
the
annualized
capital
cost
reported.)
The
annualized
cost
of
the
necessary
capital
purchases
varies
from
$
2,250
to
$
22,500,
per
year,
per
unit,
depending
on
the
type
of
monitoring
methodology.
Table
6­
4
contains
a
breakdown
of
annual
costs
by
monitoring
methodology.
25
6(
d)
Estimating
the
Respondent
Universe
and
Total
Burden
and
Costs
Emission
Reporting
Requirements
The
number
of
respondents
is
estimated
to
be
51
States
(
including
DC),
4
Territories
and
49
local
agencies,
resulting
in
104
total
respondents.
Most
of
the
activities
detailed
in
Table
6­
1
apply
to
a
subset
of
the
104
potential
respondents.
The
total
hourly
burden
for
all
respondents
is
estimated
to
be
an
increase
of
49
hours
per
year
from
the
approved
ICRs
for
the
CERR
and
the
NO
X
SIP
Call.
During
the
first
3­
year
period
that
the
rule
is
in
effect,
the
respondents
costs
should
increase
by
$
1914
per
year.

Emission
Trading
Requirements
The
number
of
industry
respondents
varies
depending
on
the
activity
in
question.
Activities
such
as
title
V
permit
application
or
processing
allowance
transfers
can
involve
nearly
two
thousand
sources.
The
number
of
units
which
will
be
required
to
install
a
particular
type
of
monitoring
equipment
will
be
less
since
many
already
have
monitoring
equipment
especially
if
they
are
in
the
NO
X
SIP
Call
region.
Tables
6­
1,
6­
2,
and
6­
3
give
estimates
of
State
burden.
These
burdens
include
preparation
of
the
SIP
revision
in
response
to
the
CAIR,
activities
associated
with
participating
in
an
emissions
trading
programs,
and
reporting
information
to
EPA
under
§
51.123
and
.124
.
Table
6­
4
gives
estimates
of
industry
burden
beginning
with
the
first
expected
monitoring
year,
2008.
This
burden
includes
monitoring,
reporting
and
other
activities
involved
in
participating
in
an
emissions
trading
programs.
The
total
number
of
respondents
is
estimated
to
be
approximately
1,700
facilities.

6(
e)
Bottom
Line
Burden
Hours
and
Cost
Tables
Emission
Reporting
Requirements
Total
Estimated
Respondent
Burden
and
Cost
Summary
Number
of
Respondents
Number
of
Activities1
Total
Hours
Per
Year
Total
Labor
Costs
Per
Year
State
Respondents
Varies
from
6
to
104
131
52
$
2,011
1On
average,
each
State
respondent
is
assumed
to
perform
5
discrete
activities
associated
with
the
CAIR
emission
reporting
requirements,
as
indicated
in
Table
6­
3.
This
total
is
the
sum
of
the
"
Number
of
Respondents"
column
in
Table
6­
3.

Emission
Trading
Requirements
Total
Estimated
Respondent
Burden
and
Cost
Summary
Number
of
Respondents
Total
Hours
Per
Year
Total
Costs
Per
Year
State
Respondents
29
440
$
138,683
Industry
Respondents
1,700
375,976
$
42,017,534
26
6(
f)
Reasons
for
Change
in
Burden
Emission
Reporting
Requirements
The
net
change
in
emission
reporting
burden
as
compared
with
the
approved
ICRs
for
the
CERR
and
NO
X
SIP
Call
is
an
increase
of
52
hours.
The
elimination
of
the
NO
X
SIP
Call
2007
report
has
resulted
in
a
decrease
of
59
hours;
the
addition
of
AR,
FL,
IO,
LA
MS
and
WI
to
the
NO
X
SIP
Call
reporting
requirements
has
added
50
hours;
69
hours
were
estimated
to
read
the
rule
requirements.

Emission
Trading
Requirements
The
large
burden
associated
with
this
rule
is
a
result
of
the
costs
of
monitoring,
certifying,
quality
assuring
and
reporting
emissions
data
from
large
electric
generating
units
regulated
under
CAIR.
This
burden
is
tempered
however
by
the
integration
of
these
monitoring
and
reporting
requirements
with
those
already
required
under
the
Acid
Rain
and
NO
X
SIP
Call
trading
programs.
Otherwise,
the
burden
would
be
significantly
higher
and
the
number
of
sources
would
be
greater.

6(
g)
Burden
Statement
Reporting
of
emissions
data
required
by
the
CAIR
is
estimated
to
involve
an
average
reduction
of
6
hours
per
year
for
each
State,
Territorial
and
local
air
pollution
control
agency.
Monitoring
and
reporting
emissions
under
the
CAIR
Trading
Programs
is
estimated
to
involve
up
to
500
hours
per
year
for
affected
sources.
This
estimate
considers
the
most
hours
expected
for
a
source.
With
acceptable
variations
in
monitoring
methodologies,
many
sources
will
spend
much
less
time
each
year
meeting
these
requirements.
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
are
listed
in
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
27
automated
collection
techniques,
EPA
has
established
a
public
docket
for
this
ICR
under
Docket
ID
No.
OAR­
2003­
0053,
which
is
available
for
public
viewing
at
the
Air
and
Radiation
Docket
and
Information
Center,
in
the
EPA
Docket
Center
(
EPA/
DC),
EPA
West,
Room
B102,
1301
Constitution
Ave.,
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
holidays.
The
telephone
number
for
the
Reading
Room
is
(
202)
566­
1744,
and
the
telephone
number
for
the
Air
Docket
is
(
202)
566­
1742.
An
electronic
version
of
the
public
docket
is
available
through
EPA
Dockets
(
EDOCKET)
at
http://
www.
epa.
gov/
edocket.
Use
EDOCKET
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.
Once
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,
DC
20503,
Attention:
Desk
Office
for
EPA.
Please
include
the
EPA
Docket
ID
No.
(
OAR­
2003­
0053).
28
Table
6­
1.
Emission
Reporting
Requirements
­
State
Respondent
Burden
Hours
by
Activity
Information
Collection
Activity
Hours
Per
Respondent
Managerial
Hours
Technical
Hours
Total
One­
time
Read
the
reporting
requirements
of
the
rule
1
1
2
Elimination
of
the
NOX
SIP
Call
requirement
for
a
special
all­
sources
report
for
the
year
2007
(
DECREASE)
0
8
8
Triennial
Add
AR,
FL,
IO,
LA,
MS,
and
WI
to
the
NOX
SIP
Call
reporting
requirements
1
24
25
29
Table
6­
2.
Emission
Reporting
Requirements
­
Activities
Required
by
States
Every
Year
During
the
Period
2006
through
2008
Information
Collection
Activity
2006
2007
2008
One­
time
(
Annualized)

Read
the
reporting
requirements
of
the
rule

Triennial
Add
AR,
FL,
IO,
LA,
MS
and
WI
to
the
NO
X
SIP
Call
reporting
requirements

Table
6­
3.
Annual
State
Respondent
Burden
and
Cost
by
Activity
Hours
and
Costs
Per
Respondent
Total
Hours
and
Costs
Information
Collection
or
Trading
Rule
Activity
Mgr.
$
41.63/
Hr1
Tech.
$
34.36/
Hr1
Respondent
Hours/
Year
Labor
Cost/
Year
Number
of
Respond
ents
Total
Hours/
Year2
Total
Cost/
Year3
One­
time
(
Annualized)
Read
the
reporting
requirements
of
the
rule
0.33
0.33
0.66
25.08
104
69
2608
Elimination
of
the
NOX
SIP
Call
requirement
for
a
special
all­
sources
report
for
the
year
2007
(
DECREASE)
­
0.13
­
2.67
­
2.80
­
97.15
22
­
62
­
2137
Revise
SIP
if
necessary
to
obtain
required
reductions
50
250
300
10671.50
9
2700
96,044
Annual
Trading
Program
related
(
monitoring
certifications,
audits)
40
400
440.00
15,409
9
3960
138,683
Triennial
Add
AR,
FL,
IO,
LA,
MS,
and
WI
to
the
NO
X
SIP
Call
reporting
requirements
0.33
8.00
8.33
288.62
6
50
1732
Total
91
656
746
26,297
varies
6,717
236,930
1
See
Section
6
(
b)
(
i)
for
labor
and
overhead
rates.

2
Hours
per
year
are
rounded
to
the
nearest
hour.
3
Costs
per
year
are
rounded
to
the
nearest
dollar.
Table
6­
4.
Annual
Industry
Respondent
Burden
and
Cost
by
Activity,
2008
and
subsequent
years
Mgr.
Tech.
Respondent
Annual
Capital
Total
$
73.42
$
50.44
Respondent
Labor
Startup
O
&
M
Number
of
Hours/
Total
/
Hour
/
Hour
Hours/
Year
Cost/
Year
Costs
Cost
Respondents
Year
Cost/
Year
Information
Collection
Activity
2008
2008
2008
2008
2008
2008
2008
2008
2008
Title
V
permit
application
4
0
4
$
293.68
$
­
$
­
3029
12116
$
889,556.72
Permit
to
Construct
20
20
40
$
2,477.20
$
­
$
­
67
2680
$
165,972.40
Startup/
Capital
Items
~
AR
Sources
in
PM
States
not
in
SIP
Call
region
a.
DAHS
modification
2
4
6
$
348.60
$
600.00
$
­
502
3012
$
476,197.20
~
nonAR
Sources
in
PM
States
in
SIP
Call
region
a.
add
SO2
monitoring
13
3
16
$
1,105.78
$
6,379.00
$
­
56
896
$
419,147.68
b.
DAHS
modification
2
4
6
$
348.60
$
600.00
$
­
805
4830
$
763,623.00
~
nonAR
Sources
in
PM
States
not
in
SIP
Call
region
a.
add
SO2
monitoring
10
20
30
$
1,743.00
$
6,379.00
$
­
11
330
$
89,342.00
b.
NOx
and
flow
CEMS
24
3
27
$
1,913.40
$
22,500.00
$
­
260
7020
$
6,347,484.00
c.
NOx
CEMS
and
fuel
flowmeter
64
10
74
$
5,203.28
$
18,750.00
$
­
249
18426
$
5,964,366.72
d.
App
E
and
fuelmeter
20
10
30
$
1,972.80
$
2,250.00
$
­
125
3750
$
527,850.00
~
AR
Source
in
O3
State
not
in
SIP
Call
region
a.
DAHS
modification
2
4
6
$
348.60
$
600.00
$
­
19
114
$
18,023.40
~
nonAR
Sources
in
O3
State
not
in
SIP
Call
region
a.
NOx
and
flow
CEMS
24
3
27
$
1,913.40
$
22,500.00
$
­
10
270
$
244,134.00
b.
NOx
CEMS
and
fuel
flowmeter
64
10
74
$
5,203.28
$
18,750.00
$
­
9
666
$
215,579.52
c.
App
E
and
fuelmeter
20
10
30
$
1,972.80
$
2,250.00
$
­
5
150
$
21,114.00
Review
Instructions
and
Requirements
~
AR
Sources
in
PM
States
in
SIP
Call
region
1
1
2
$
123.86
$
­
$
­
826
1652
$
102,308.36
~
AR
Sources
in
PM
States
not
in
SIP
Call
region
1
1
2
$
123.86
$
­
$
­
502
1004
$
62,177.72
~
nonAR
Sources
in
PM
States
in
SIP
Call
region
1
1
2
$
123.86
$
­
$
­
805
1610
$
99,707.30
~
nonAR
Sources
in
PM
States
not
in
SIP
Call
region
24
24
48
$
2,972.64
$
­
$
­
634
30432
$
1,884,653.76
~
AR
Source
in
O3
State
in
SIP
Call
region
1
1
2
$
123.86
$
­
$
­
74
148
$
9,165.64
~
nonAR
Source
in
O3
State
in
SIP
Call
region
1
1
2
$
123.86
$
­
$
­
145
290
$
17,959.70
~
AR
Source
in
O3
State
not
in
SIP
Call
region
1
1
2
$
123.86
$
­
$
­
19
38
$
2,353.34
~
nonAR
Sources
in
O3
State
not
in
SIP
Call
region
24
24
48
$
2,972.64
$
­
$
­
24
1152
$
71,343.36
Respond
to
EPA
Generated
Error
Messages
~
nonAR
Sources
in
PM
States
not
in
SIP
Call
region
4
8
12
$
697.20
$
­
$
­
634
7608
$
442,024.80
~
nonAR
Sources
in
O3
State
not
in
SIP
Call
region
4
8
12
$
697.20
$
­
$
­
24
288
$
16,732.80
Debug
Computer
Software
~
nonAR
Sources
in
PM
States
not
in
SIP
Call
region
16
88
104
$
5,613.44
$
­
$
­
634
65936
$
3,558,920.96
~
nonAR
Sources
in
PM
States
in
SIP
Call
region
1
4
5
$
275.18
$
­
$
­
805
4025
$
221,519.90
~
nonAR
Sources
in
PM
States
in
SIP
Call
region
~
nonAR
Source
in
O3
State
in
SIP
Call
region
1
4
5
$
275.18
$
­
$
­
145
725
$
39,901.10
~
nonAR
Sources
in
O3
State
not
in
SIP
Call
region
16
88
104
$
5,613.44
$
­
$
­
24
2496
$
134,722.56
Certify
Monitors
~
nonAR
Sources
in
PM
States
in
SIP
Call
region
a.
SO2
monitor
5
16
21
$
1,174.14
$
­
$
2,800.00
56
1176
$
222,551.84
~
nonAR
Sources
in
PM
States
not
in
SIP
Call
region
a.
SO2
monitor
5
16
21
$
1,174.14
$
­
$
2,800.00
9
189
$
35,767.26
b.
NOx
and
flow
CEMS
10
32
42
$
2,348.28
$
­
$
2,800.00
142
5964
$
731,055.76
c.
NOx
CEMS
and
fuel
flowmeter
10
32
42
$
2,348.28
$
­
$
2,800.00
133
5586
$
684,721.24
d.
App
E
and
fuelmeter
8
24
32
$
1,797.92
$
­
$
10,000.00
66
2112
$
778,662.72
~
nonAR
Sources
in
O3
State
not
in
SIP
Call
region
a.
NOx
and
flow
CEMS
10
32
42
$
2,348.28
$
­
$
2,800.00
10
420
$
51,482.80
b.
NOx
CEMS
and
fuel
flowmeter
10
32
42
$
2,348.28
$
­
$
2,800.00
9
378
$
46,334.52
c.
App
E
and
fuelmeter
8
24
32
$
1,797.92
$
­
$
10,000.00
5
160
$
58,989.60
Perform
QA
Testing
and
Maintenance
~
nonAR
Sources
in
PM
States
in
SIP
Call
region
a.
SO2
monitor
10
200
210
$
10,822.20
$
­
$
10,400.00
56
11760
$
1,188,443.20
~
nonAR
Sources
in
PM
States
not
in
SIP
Call
region
a.
SO2
monitor
10
200
210
$
10,822.20
$
­
$
10,400.00
9
1890
$
190,999.80
b.
NOx
and
flow
CEMS
40
400
440
$
23,112.80
$
­
$
20,800.00
142
62480
$
6,235,617.60
c.
NOx
CEMS
and
fuel
flowmeter
20
375
395
$
20,383.40
$
­
$
17,400.00
133
52535
$
5,025,192.20
d.
App
E
and
fuelmeter
5
30
35
$
1,880.30
$
­
$
1,800.00
66
2310
$
242,899.80
~
nonAR
Sources
in
O3
State
not
in
SIP
Call
region
a.
NOx
and
flow
CEMS
40
400
440
$
23,112.80
$
­
$
20,800.00
10
4400
$
439,128.00
b.
NOx
CEMS
and
fuel
flowmeter
20
375
395
$
20,383.40
$
­
$
17,400.00
9
3555
$
340,050.60
c.
App
E
and
fuelmeter
5
30
35
$
1,880.30
$
­
$
1,800.00
5
175
$
18,401.50
Assure
Data
Quality,
Prepare
Reports,
Submit
Reports
~
non
AR,
non
SIP
Call
sources
16
42
58
$
3,293.20
$
­
$
­
658
38164
$
2,166,925.60
~
Year
end
compliance
activities
2
0
2
$
146.84
$
­
$
­
3029
6058
$
444,778.36
~
Allowance
Transfers
1
1
2
$
123.86
$
­
$
­
2500
5000
$
309,650.00
TOTAL
375976
$
42,017,534.34