Document ID: EPA-HQ-OAR-2004-0083-0122
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2007-12-28T05:00Z

SEQ CHAPTER \h \r 1 	SUPPORTING STATEMENT

NATIONAL EMISSION STANDARDS FOR HAZARDOUS AIR POLLUTANTS FOR AREA
SOURCES:  	ELECTRIC ARC FURNACE STEELMAKING FACILITIES

PART A

1.0  Identification of the Information Collection

(a) Title and Number of the Information Collection.

	“National Emission Standards for Hazardous Air Pollutants for Area
Sources:  Electric Arc Furnace Steelmaking Facilities.”  This is a new
information collection request (ICR).  The Environmental Protection
Agency (EPA) tracking number for this request is ICR number 2277.02.

(b) Short Characterization.

	Potential respondents are owners or operators of electric arc furnace
(EAF) steelmaking facilities that are area sources of hazardous air
pollutants (HAP) emissions.  The final standards establish particulate
matter (PM) emission limits for control devices and opacity limits for
melt shops; pollution prevention requirements for ferrous scrap that is
melted in EAFs; and monitoring, reporting, and recordkeeping
requirements.

	All respondents are required to comply with the compliance assurance
monitoring requirements in 40 CFR part 64.  Respondents must conduct
initial performance tests (if a performance test has not been conducted
in the previous 5 years) and operate according to a startup, shutdown,
and malfunction plan.  Options are provided for the pollution prevention
requirements for scrap:  (1) restrict the use of certain scrap that
contains contaminants such as mercury, organic liquids, or lead; or (2)
implement a pollution prevention plan for scrap inspection and selection
to limit the amount of organics, mercury, and lead in the scrap.  The
plans must include provisions to demonstrate compliance such as periodic
inspections of incoming scrap and recordkeeping.  All respondents are
required to submit one-time notifications, make semiannual compliance
reports, and maintain records of specific information to ensure that the
rule requirements are being achieved.  These requirements are listed in
Attachment 1. 

2.  Need For and Use of the Collection

(a)	Need/Authority for the Collection.

	Section 112(d) of the Clean Air Act (CAA) requires regulation of major
and area sources of HAP that are listed for regulation under section
112(c).  Additional requirements for area sources are described in
section 112(k).  We implement the area source requirements through our
Integrated Urban Air Toxics Strategy (64 FR 38715, July 19, 1999).  The
Integrated Urban Air Toxics Strategy identifies 33 pollutants that pose
the greatest public health concern in the largest number of urban areas
along with the area sources that represent 90 percent of the emissions. 
We added EAF steelmaking facilities to the Integrated Urban Air Toxics
Strategy area source category list on June 26, 2002 (67 FR 43112).  Area
source standards established pursuant to the Integrated Urban Air Toxics
Strategy may be based on the maximum achievable control technology
(MACT) under CAA section 112(d)(4) or generally available control
technology (GACT) under CAA section 112(d)(5).  The area source
standards for EAF steelmaking facilities reflect the application of GACT
for emission limits and operating limits. 

	Section 112(c)(6) requires EPA to list major and area source categories
that emit any of seven specific pollutants (one of which is mercury). 
We must assure that the listed source categories account for 90 percent
of the aggregate emissions of each of the seven specific pollutants and
that the listed source categories are, or will be, subject to MACT
standards under section 112(d).  Since the initial listing (April 10,
2998), we have found that EAF steelmaking facilities are a significant
contributor to mercury emissions.   Concurrent with the proposed rule,
we added EAF steelmaking facilities to the list of source categories
under CAA section 112(c)(6).  The work practice standards for EAF
steelmaking facilities reflect the application of MACT for the control
of mercury emissions.  

	Certain records and reports are necessary for the Administrator to: 
(1) confirm the compliance status of area sources, identify new or
reconstructed sources subject to the standards; and ensure that the
standards are being achieved on a continuous basis.  These recordkeeping
and reporting requirements are specifically authorized by section 114 of
the CAA (42 U.S.C. 7414) and set out in the General Provisions for
national emission standards for hazardous air pollutants (NESHAP) in 40
CFR Part 63, Subpart A.

(b)	Use/Users of the Data.

	The information will be used by Agency enforcement personnel to ensure
that the rule requirements are being achieved.  Based on review of the
recorded information at the site and the reported information, EPA can
identify facilities that may not be in compliance and decide which
plants, records, or processes should be inspected.

3.	Nonduplication, Consultations, and Other Collection Criteria

(a)	Nonduplication.

	A computer search of the Federal Information Locator System indicated
that, with the exception of the New Source Performance Standards for
Electric Arc Furnaces (40 CFR Part 60, Subparts AA and Aaa), there are
no similar information requests being carried out by the Federal
government.  A similar search of EPA's ongoing ICR's revealed no
duplication of information-gathering efforts.  Most of the requirements
in the final standards have been adopted from the NSPS.  Therefore,
certain reports required by the NSPS or State or local agencies may
duplicate information required by the final standards.  In such cases, a
copy of the report submitted for the NSPS or to the State or local
agency can be provided to the Administrator in lieu of the information
that would be required in the semi-annual compliance report.

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

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

(c)	Consultations.

	These final standards were developed in consultation with State and
local agencies, EPA Regional Office experts, individual plants, and
their trade associations.  For example, several meetings and telephone
consultations were held with representatives from the affected plants,
and their trade associations.  The non-EPA persons consulted on the
information collection activities are identified in Table 1.

	TABLE 1.  PERSONS CONSULTED ON THE INFORMATION COLLECTION ACTIVITIES

Contact	Organization	Telephone Number

Eric Stuart	Steel Manufacturers’ Association	202-296-1515

Jim Schultz	American Iron and Steel Institute	202-452-7180

John Wittenborn	Counsel for the Specialty Steel Industry of North
America	202-342-8514

(d)	Effects of Less Frequent Collection.

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

(e)	General Guidelines. 

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

(f)	Confidentiality.

	All information submitted to the Agency for which a claim of
confidentiality is made will be safeguarded according to the Agency
policies set forth in Title 40, Chapter 1, Part 2, Subpart B --
Confidentiality of Business Information (see 40 CFR 2; 41 FR 36902,
September 1, 1976; amended by 43 FR 39999, September 28, 1978; 43 FR
42251, September 28, 1978; 44 FR 17674, March 23, 1979).

(g)  Sensitive Questions.  

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

4.	The Respondents and the Information Requested

(a)	Respondents/NAIC Codes.

	Potential respondents are owners or operators of new or existing EAF
steelmaking facilities that are area sources of HAP.  We estimate that
91 plants will be subject to the testing, monitoring, notification,
reporting, and recordkeeping requirements; no new facilities are
expected during the 3-year clearance period of this ICR.  The NAICS
codes for this industry is 331111, “Iron and Steel Mills”.   

(b) Information Requested.

	(i) Data Items, Including Recordkeeping Requirements.  Attachment 1,
Source Data and Information Requirements, summarizes the proposed
information collection requirements.	(ii) Respondent Activities.  The
respondent activities required by the proposed amendments are identified
in Table 2 and introduced in section 6(a).

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

(a)	Agency Activities.

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

(b)	Collection Methodology and Management.

	This is not relevant to this information collection request.

(c)	Small Entity Flexibility.

	A small entity for this industry is defined by the Small Business
Administration as a firm having no more than 1,000 employees.  Of the 91
facilities that will be subject to the rule, two facilities are
considered to be small entities.

	Although the final rule would not have a significant economic impact on
the small entities, we nonetheless tried to reduce the impact of the
rule on small facilities.  We held several meetings with industry trade
associations and company representatives to discuss the rule and have
included provisions to address their concerns.

(d) Collection Schedule.

	Information contained in the periodic reports submitted to the EPA will
be entered into the Aerometric Information Retrieval System (AIRS)
database which is operated and maintained by EPA’s Office of Air
Quality Planning and Standards.  Information contained in the one-time
only reports will be entered into the National Compliance Data System
operated and maintained by EPA’s Office of Enforcement and Compliance
Assurance.  Data obtained during periodic visits by Agency personnel
from records maintained by the respondents will be tabulated and
published for internal EPA use in enforcement and compliance programs. 
A schedule for collection of information and publication of data is not
applicable because reports are triggered by actions of the respondents.

6.  Estimating the Burden and Cost of the Collection

(a)	Estimating Respondent Burden.

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

(b)	 Estimating Respondent Costs.

	(i)  Estimating Labor Costs.  Labor rates and associated costs are
based on Bureau of Labor Statistics (BLS) data.  Technical, management,
and clerical average hourly rates for private industry workers were
taken from the United States Department of Labor, Bureau of Labor
Statistics, May 2006, “Occupational Employment Statistics” available
at www.bls.gov.  

Wages for occupational groups in NAICS 331100 (Iron and Steel) are used
as the basis for the labor rates with a total compensation of
$32.93/hour for technical (environmental engineer), $45.91/hour for
environmental manager, and $13.76/hour for clerical.  These rates
represent salaries plus fringe benefits and do not include the cost of
overhead.  An overhead rate of 60 percent is used to account for these
costs.  The fully-burdened hourly wage rates used to represent
respondent labor costs are:  technical at $52.69, management at $73.46,
and clerical at $2.02.

	(ii)  Estimating Capital and Operations and Maintenance (O&M) Costs. 
As shown in Table 2, no (zero) capital/startup or O&M costs are
associated with the rule over the 3-year period of this ICR.  

	(iii) Capital/Startup vs. O&M Costs.  The estimate of capital/startup
costs vs. O&M costs is shown in Table 2.  No (zero) O&M costs are
associated with the rule over the 3-year period of this ICR. 

	(iv) Annualizing Capital Costs.  As shown in Table 2, no (zero)
annualized costs are associated with the rule during the 3-year period
of this ICR.

(c)  Estimating Agency Burden and Cost.

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

	The Agency labor rates are from the Office of Personnel Management
(OPM) 2007 General Schedule which excludes locality rates of pay.  These
rates are from Salary Table 2007-GS available on the OPM website,  
HYPERLINK "https://www.opm.gov/oca/07tables/html/gs_h.asp" 
https://www.opm.gov/oca/07tables/html/gs_h.asp .  The government
employee labor rates are $14.16/hour for clerical (GS-6, Step 3), $29.98
for technical (GS-12, Step 1), and $36.36/hr for management (GS-13, Step
5).  These rates were increased by 60 percent to include fringe benefits
and overhead.  The fully-burdened wage rates used to represent Agency
labor costs are:  clerical at $22.66; technical at $43.14, and
management at $58.18.

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

	The EPA estimates that 91 area source plants with EAF steelmaking
facilities will be subject to the rule requirements.  No new respondents
are anticipated during the next 3 years.  Therefore, the average annual
number of respondents is 30.3.  Details on the number of respondents
affected by each individual burden item are provided in the footnotes of
Table 2.

	The total number of annual responses for the final rule is 243.  This
number is calculated from the number of respondents subject to one-time
(initial) notification requirements (91) multiplied by the number of
initial reports (2 over 3 years = 0.67 per year), plus the number of
respondents (91) multiplied by the number of semiannual reports (2 per
year). 

 (e)	Bottom Line Burden Hours and Cost Tables.

	(i)  Respondent tally.  The bottom line respondent burden hours and
costs, presented in Table 2, are calculated by adding person-hours per
year down each column for technical, managerial, and clerical staff, and
by adding down the cost column.  The average annual burden for the
monitoring, recordkeeping, and reporting requirements in the rule is
2,393 person hours with an annual average cost of $121,573 with no
annual capital and O&M costs.

	(ii)  The Agency tally.  The average annual Federal Government cost for
the existing rule is $8,859 for 192 total annual hours.  The bottom line
Agency burden hours and costs for the final rule, presented in Table 3,
are calculated by adding person-hours per year down each column for
technical, managerial, and clerical staff, and by adding down the cost
column.  In this case, total cost is the sum of this total salary cost
and total travel expenses for tests attended. 

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

(f)	Reasons for Change in Burden.

	This section does not apply because this is a new ICR.

(g)  Burden Statement

	The average annual respondent burden per facility is estimated at 79
hours.  Burden means the total time, effort, or financial resources
expended by persons to generate, maintain, retain, or disclose or
provide information to or for a Federal agency.  This includes the time
needed to review instructions; develop, acquire, install, and utilize
technology and systems for the purposes of collecting, validating, and
verifying information, processing and maintaining information, and
disclosing and providing information; adjust the existing ways to comply
with any previously applicable instructions and requirements; train
personnel to be able to respond to a collection of information; search
data sources; complete and review the collection of information; and
transmit or otherwise disclose the information.

	An agency may not conduct or sponsor, and a person is not required to
respond to a collection of information unless it displays a currently
valid OMB control number.  The OMB control numbers for EPA's regulations
in 40 CFR part 63 are listed in 40 CFR part 9.

	To comment on the Agency’s need for this information the accuracy of
the provided burden estimates, and any suggestions for minimizing
respondent burden, including through the use of automated collection
techniques, EPA has established a public docket for this ICR under
Docket ID No. OAR-2004-0083, 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 B-102, 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   HYPERLINK  http://www.epa.gov/docket.   Use EDOCKET to submit or
view public comments, and to access the index listing of the contents of
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 Officer for EPA. 
Please include the EPA Docket ID No. OAR-2004-0083 in any
correspondence.

PART B

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

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

Burden item	(A) Person-hours per occurrence	(B)  No. of occurrences per
respondent	(C) Person-hours per respondent (C=A*B)	(D) Respondents per
yeara	(E) Technical person-hours per year (E=C*D)	(F) Management
person-hours per year 

(E*0.05)

	(G) Clerical person-hours per year (E*0.1)	(H) Costb, $ 

1.  Applications	N/A

	2.  Surveys and Studies	N/A

	3.  Acquisition, Installation, and Utilization of Technology and
Systems 	N/A

	4.  Reporting Requirements

A.  Read instructions	8	1	8	30.3	242	12	24	$14,196

B.  Required activities 

Prepare scrap plan and scrap specifications	4	1	4	30.3	121	6.1	12	$7,098

Initial performance testsc

C.  Create information	See 4B

	D.  Gather existing information	See 4B

	E.  Write report	See 4B

	Initial notification of applicability	2	1	2	30.3	61	3.0	6.1	$3,549

Notification of compliance status	2	1	2	30.3	61	3.0	6.1	$3,549

Request for compliance extension	N/A

	Notification of performance testc

Startup, shutdown, and malfunction plan/reports	4	1	4	30.3	121	6.1	12
$7,098

 Semiannual excess emissions reports	2	2	4	91	364	18.2	36	$21,317

5.  Recordkeeping Requirements 

A.  Read instructions	See 4A

	B.  Plan activities	See 4A

	C.  Implement activities	See 4A

	D   Develop record system 	4	1	4	30.3	121	6.1	12	$7,098

E.  Time to enter information 	0.5	52	26	30.3	788	39	79	$46,135

F.  Time to transmit or disclose information	0.25	2	1	30.3	15	0.8	1.5
$887

G.  Time to adjust existing ways	2	1	2	30.3	61	3.0	6.1	$3,549

F.  Time to train personnel	4	1	4	30.3	121	6.1	12	$7,098

G.  Time for audits	N/A

	TOTAL LABOR BURDEN AND COST

	2,393 hrs	$121,573

     Annualized cost of capitald

$0

     Operation and maintenance (O&M)d

$0

     Total (capital recovery plus O&M)d    

$0

N/A = not applicable.

a  There are 91 EAF steelmaking facilities.  The average number of
respondents per year for one time events over the 3-year period of the
ICR is 30.3 (91÷3=30.3).

b This ICR uses the following labor rates: $73.46 for managerial labor,
$52.69 for technical labor, and $22.02 for clerical labor.  These rates
are from the U.S. Department of Labor, Bureau of Labor Statistics, May
2006, for NAICS 331100 (Iron and Steel).  The rates have been increased
by 60% to account for overhead.

c  All plants have conducted performance tests within the previous 5
years.  No additional performance tests are attributed to the proposed
rule.

d  All plants already have installed monitoring equipment as a result of
the compliance assurance monitoring rule (40 CFR part 64) and their
title V permit requirements.  The proposed rule will not require any
additional monitoring equipment.	TABLE 3.  ANNUAL BURDEN AND COST TO
THE FEDERAL/STATE GOVERNMENT OF THE PROPOSED STANDARDS

Burden Item	(A) Person hours per occurrence	(B) Occurrences per
respondent	(C) Plants per yeara	(D) Technical hours/year (D=A*B*C)	(E)
Management   hours/year (E=0.05*D)	(F) Clerical-hours/year (F=0.1*D)	
(G) Costb, $

Report Review:

  Initial notification of applicability 	1	1	30.3	30.3	1.5	3.0	$1,610

  Startup, shutdown, malfunction plan/report	2	1	30.3	60.6	3.0	6.1
$3,220

  Notification of compliance status	1	1	30.3	30.3	1.5	3.0	$1,610

  Semiannual excess emissions report	0.5	1	91	46	2.3	4.6	$2,418

TOTAL BURDEN AND COST	 	 	 	192	$8,859

a  There are 91 EAF steelmaking facilities.  The average number of
respondents per year for one time events over the 3-year period of the
ICR is 30.3 (91÷3=30.3).

b This ICR uses the following average hourly labor rates: 58.18 for
managerial (GS-13, Step 5, $36.36 x 1.6), $43.14 (GS-12, Step 1, $29.98
x 1.6) for technical and $22.66 (GS-6, Step 3, $14.16 x 1.6) for
clerical.  These rates are from the Office of Personnel Management (OPM)
“2007 General Schedule” which excludes locality rates of pay.

 



ATTACHMENT  1.  SOURCE DATA AND INFORMATION REQUIREMENTS

Requirement	Regulation  citation	General Provisions

 citation	Record retention

STUDIES AND PLANS

Scrap management plan	63.10685(a)(1) and (b)(1)

Kept onsite at all times

Startup, shutdown, and malfunction plan

63.6(e)(3)	Kept onsite at all times

REPORTS

Notification of applicability

63.9(b)(1)	5 years

Notification of construction/reconstruction

63.9(b)(4)	5 years

Compliance extension

63.9(c)	5 years

Notification of special requirements

63.9(d)	5 years

Notification of performance test

63.9(e)	5 years

Notification of opacity observations

63.9(f)	5 years

Additional COMS notifications

63.9(g)	5 years

Notification of compliance status	63.10690(b)	63.9(h)	5 years

Semiannual compliance report	63.10685(c)	 	5 years

Startup, shutdown,  malfunction report

63.10(d)(5)(ii)	5 years

RECORDKEEPING

Notifications and reports

63.10(b)(2)(xiv)	5 years

Startups, shutdowns, malfunctions	

63.6(e)(1)(iii)-(v)	5 years

Performance tests, performance evaluations, and opacity observations

63.10(b)(2)(viii)-(ix)	5 years

Emission/operating limits

63.10(b)(2)(vii)	5 years

Scrap management requirements	63.10685(c)	63.10(b)(2)(iii)	5 years

Continuous monitoring systems

63.10(b)(2)(vi)- (vii), (x)-(xi) 63.10(c) ; 63.6(h)(7); 63.8(d)(3)	5
years