Document ID: EPA-HQ-OAR-2006-0947-0020
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2013-09-17T04:00Z

DRAFT

INFORMATION COLLECTION REQUEST RENEWAL

FOR THE NOx BUDGET TRADING PROGRAM TO REDUCE THE REGIONAL TRANSPORT OF
OZONE

SUPPORTING STATEMENT

EPA ICR No. 1857.06, OMB Control No. 2060-0445

1.  IDENTIFICATION OF THE INFORMATION COLLECTION

1(a) Background

	This Information Collection Request (ICR) addresses the labor hour
burden and costs of State reporting requirements contained in the U.S.
Environmental Protection Agency's (EPA) rule to control regional
transport of ozone season NOx emissions contributing to exceedances of
the Ozone National Ambient Air Quality Standard (NAAQS) in the eastern
United States which was published on October 27, 1998 (63 FR 57350). 
This rule is known informally as the NOx SIP Call.  These provisions are
incorporated in 40 CFR 51.121 and 51.122.  The reporting requirements of
this rule under §51.122 are imposed directly on the States, not on
industry.  However, in order to meet the requirements of this rule,
States will of necessity have to impose requirements on industry for
installation of continuous emission monitors and for recordkeeping and
reporting.  Therefore, there will be an indirect record keeping and
reporting burden on industry as a result of this rule, and this ICR
estimates those burden hours and costs incurred by industry.  

The focus of this ICR is the monitoring and reporting burden for States
and sources that remain affected by the NOx SIP Call, and that are not
subject to subsequent rulemaking and addressed in other ICRs.  The rule
originally encouraged an emissions trading program for fossil fuel-fired
NOx sources serving electrical generators (EGUs) with a nameplate
capacity greater than 25 MW or boilers, combustion turbines, or combined
cycle units with maximum design heat input greater than 250 mm BTU/hr. 
Under the SIP call, many States elected to meet much of the required
emission reductions through the federally administered emissions trading
program.  Most of the units that originally participated in that NOx
Budget Trading Program (NBP) now participate in an expanded emissions
trading program established in conjunction with the Clean Air Interstate
Rule (CAIR), and the burdens and costs for those units is covered under
EPA ICR #2152.04, OMB Control Number 2060-0570.  The only units still
subject to this ICR are certain non-EGUs that participated in the NBP
but are not participating in CAIR.  

	In addition to the NOX SIP Call burdens, this ICR retains legacy the
paperwork burden and costs that would be included if the trading program
was reinstated.  These costs are related to:  (1) transferring and
tracking allowances; (2) the allocation of allowances to affected units;
(3) permitting; (4) annual year end compliance certification; and (5)
meeting the monitoring and reporting requirements of the program.  These
obsolete historical emissions trading burden sections are identified as
“Not Active” and represented in the document as tables with the
respondent numbers and burden hours listed but calculated as zero.  EPA
has ongoing rulemaking related to CAIR court cases (most recently, the
December 23, 2008 DC Circuit Court of Appeals case No. 05-1244, which
remanded the previous decision vacating CAIR).  As a result, the Agency
may, at some future time, reinstitute the NBP.  For example, this might
happen if both the CAIR and CAIR replacement rules were vacated by the
Court. 

As part of the NOx SIP Call, States are required to report certain data
to EPA on an annual or triennial basis.  However, both the AERR and CAIR
include similar reporting requirements, and all State burdens associated
with this type of reporting are now addressed in the either the AERR and
CAIR ICR’s.  Thus, the only burdens and costs addressed in this ICR
are for the non-trading units discussed above in this section. 

1(b) Information to be Collected

	To meet the emissions monitoring recordkeeping and reporting
requirements, the former NBP trading units are required to:  (1) submit
a monitoring plan and certification of monitors; (2) record hourly
pollutant and flow monitor data; and (3) submit electronic quarterly
reports of their emissions data to EPA.  

	The respondent reporting burden for the NOx SIP Call collection of
information is estimated to be 57,586 hours each year for the years 2010
through 2012.  The burden to EPA is estimated to be 848 hours in each
year for the years 2010 through 2012.  

Emissions Trading Program (Not Active)

	As discussed in Section 1(a), background information related to NBP
allowance trading, are retained in this ICR in order to account for the
costs of ongoing trading programs (now regulated under CAIR) if needed
in the future.  The ability to buy and sell (or transfer) allowances
provides substantial economic benefits, by encouraging the greatest
emissions reductions where costs of reductions are lowest.  This concept
of allowance transfers 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 is required to obtain an
operating permit for the affected source and to certify that an approved
emissions monitoring system has been installed and is properly operated
at each affected unit's source of emissions.

Allowance Transfers (Not Active)

	Participants in the allowance transfer system have two options for
submitting transfers:  submit electronically using the internet to
record their own allowance transfers, either by entering the data on
screen or by submitting an XML file; or complete a paper form and send
it the Agency.  Participants in the transfer system that are not
affected sources under Title IV are also required to file a onetime
account information application using a paper form to establish an
account in the Allowance Tracking System (ATS).  As part of the annual
compliance determination process, designated representatives have the
option of submitting an allowance deduction form to identify specific
serial numbered allowances to be deducted for annual compliance.

Emissions Monitoring

	To meet the emissions monitoring record-keeping and reporting
requirements, affected units are required to:  (1) submit a monitoring
plan and certification of monitors; (2) record hourly pollutant and flow
monitor data; and (3) submit electronic quarterly reports of their
emissions data to EPA.  Operators of new electric generating units of 25
megawatts (MW) capacity or less may receive a CEMS exception if they
certify their use of very-low-sulfur fuel.

Submissions Purposes and Procedures (Not Active)

	Allowance transfer notifications may be submitted to EPA electronically
or on paper.  Emissions reports must be submitted electronically.  

	The allowance transfer submittal is used to record allowance transfers
for compliance purposes and to track the disposition of all allowances
in the system.  

The designated representative certification, which designates a
responsible official through whom the owners and operators of each
affected source and each affected unit can trade allowances and obtain
and maintain permits, serves to remove EPA from involvement in disputes
between owners and operators of affected units. 

	

(i)  Capital/Start-up Costs

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

(ii)  Emissions Monitoring

	Emissions monitoring and reporting is the foundation upon which the
allowance trading system is based.  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 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 for each monitoring system; (2) record
hourly emissions data; and (3) submit reports of their emissions data to
EPA.

(iii)  Year-end Compliance Certifications (Not Active)

	Each source is required to submit an annual statement providing
information on which allowances are to be deducted and certifying that
the unit is in compliance with emission limitations and monitoring and
reporting requirements.

1(c) Terms of Clearance

Terms of Clearance for the previous ICR renewal:	None.

2.  NEED FOR AND USE OF THE COLLECTION

	This section describes EPA's need for the information collections
described above and the legal authority for conducting collections.  The
users of collected information are also described.

2(a) Need/Authority for the Collection

The State reporting requirements included in the NOx SIP Call are
necessary for EPA to carry out properly its evaluation of each State's
compliance with its ozone season NOx emissions budget.  The legal
authority for the reporting requirements resides in Sections 110(a) and
301(a) of the Clean Air Act.  Specifically, the requirement in Section
110(a)(2)(D) that SIPs include "adequate provisions" to mitigate certain
transport effects on other States implicitly authorizes emissions
inventory reporting to EPA, as needed and appropriate to verify that a
State is in fact meeting its NOx budget.  Section 110(a)(2)(F) provides
additional authority for requiring that SIP call submissions include
provisions for emissions reporting by sources to a State, correlation of
source information by the State, and steps by the State to make the
correlated information available to the public.  Section 110(a)(2)(K),
in turn, requires a State to submit to EPA as requested data related to
modeling the effect of NOx and other emissions on ambient air quality. 
The reported emissions inventory data will be used by EPA in air quality
modeling to assess the effectiveness of the transport rulemaking's
regional strategy.  Finally, Section 301(a) grants EPA broad authority
to prescribe such regulations as are necessary to carry out its
functions under the Clean Air Act.

2(b) Practical Utility/Users of the Data 

	The EPA believes it is essential that compliance with the regional
control strategy be verified.  Tracking emissions is the principal
mechanism to ensure compliance with the budget and to assure the
downwind affected States and EPA that the ozone transport problem is
being mitigated. 

	If tracking and periodic reports indicate that a State is not
implementing all of its NOx control measures or is off track to meet its
statewide budget, EPA will work with the State to determine the reasons
for noncompliance and what course of remedial action is needed.  The EPA
will expect the State to submit a plan showing what steps it will take
to correct the problems.  Noncompliance with the NOx transport SIP may
lead EPA to make a finding of failure to implement the SIP and
potentially to implement sanctions, if the State does not take
corrective action within a specified time period. 

Emissions Trading Program (Not active)

(i)  Year-end Compliance Certification (Not Active)

	This information will be used by EPA to determine annual compliance and
to verify that the monitoring plan for the unit continues to be
accurate.

(ii)  Allowance Transfers and Tracking (Not Active)

	Information collected on allowance transfers would be used by EPA or
its designated agent to track allowances for the purpose of determining
compliance with the NOx Trading Program.  Information on allowance
transfers would also be 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 would help to provide the accountability to allow the NOx
Trading Program to function without more stringent command and control
approaches.

	

	The information collected by the industry sources subject to this ICR
provide necessary input data to the State emission inventory tracking
for regional control strategy compliance.

3.  NONDUPLICATION, CONSULTATIONS, AND OTHER COLLECTION CRITERIA

	This section describes:  (1) efforts by EPA to learn whether the
information requested is available from other sources; (2) consultations
with respondents and data users to plan collections, monitor their
usefulness, and minimize the collection burden; (3) effects of less
frequent collections; and (4) justification for deviations from OMB's
general guidelines.

3(a) Nonduplication

To minimize the reporting burden on State agencies, the reporting
requirements for 40 CFR 51.122 are based on existing annual and periodic
emission inventory reporting requirements as much as possible.  In large
part, the emission inventory requirements under the NOx SIP Call are now
met through the comparable requirements associated with CAIR, and the
direct State burdens associated with inventory reporting for the
regional control program is now included in the CAIR ICR.  The only
burdens remaining under this ICR reflect emissions reporting for sources
not covered under CAIR that are part of the SIP Call control strategy.  

	Almost all information requested from respondents under this ICR
renewal is not available from other sources.  Where EPA needs
information that has already been submitted, EPA is simply requiring a
photocopy of the prior submittal or the retransmission of stored
electronic data.

  

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

	For the renewal ICR, a public notice was published in the Federal
Register on March 25, 2010 on availability of the draft supporting
statement for the ICR renewal.  A 60 day comment period for public
comments was provided in the notice.  EPA received no comments in
response to the public notice that was published in the Federal Register
(see Docket ID No. EPA-HQ-OAR-2006-0947).

3(c) Consultations 

EPA contacted via telephone three affected sources for comment on the
respondent costs/burdens detailed in this ICR renewal.  Specifically,
EPA contacted Spring O’Mara with the Conoco Philips Trainer Refinery
at 610-364-8058,  Jennifer Marshall with the Tate and Lyle Facility at
217-421-2620, and Catherine Lanter with the Conoco Philips Wood River
Refinery at 618-255-2505.  Spring O’Mara and Jennifer Marshall
responded and were provided a copy of the ICR supporting statement for
review.  Neither Jennifer Marshall nor Spring O’Mara had any comments
regarding the costs/burdens detailed in this ICR renewal. No response
was received from Catherine Lanter.  	

Additionally, EPA held numerous consultations during initial development
of the NOx SIP Call, during development of CAIR, and during the ongoing
development of a replacement rule for CAIR.  The reduced burdens
accounted for under this renewal ICR reflect that most of the burden
under the NOx SIP Call is now addressed under CAIR (or its replacement
rule in the future).

For the initial rule development, on January 13, 1998, EPA held a
one-day pre-proposal workshop with the States to discuss tracking
issues.  The objective of the workshop was to determine what type and
frequency of inventory reporting is feasible for the different source
sectors (power generating sources, other point sources, area sources,
nonroad mobile, and highway mobile sources), to identify key reporting
issues related to each sector, and to develop recommendations on
reporting requirements to ensure compliance with the NOx budgets.  The
goal was to share information and ideas rather than to reach consensus. 
A summary of the meeting is contained in the docket (docket no. A-96-56,
item V-B-18) for the NOx SIP Call rulemaking.  The reporting
requirements included in 40 CFR 51.122 are based, in part, on the
suggestions of participants in the workshop.

	The recordkeeping and reporting requirements in §51.122 were included
in the supplemental proposal (63 FR 25902, May 11, 1998) on which public
comments were solicited.  Comments received were reviewed and where
appropriate were incorporated into the rule requirements as currently
given in 40 CFR 51.122.

	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 

	If this information collection were not carried out annually for
sources being controlled to meet the NOx budgets, EPA would not be able
to verify that NOx emission reductions necessary to meet each State's
NOx emission budget were being achieved.  

	Quarterly collection of emissions data for the former NBP units allows
the opportunity to check data for errors and provide rapid feedback on
needed adjustments to data collection systems, and thereby promoted
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.

	As an option for this program, EPA will allow for ozone season
reporting instead of quarterly reports for the entire calendar year. 
Under this option, units would only be required to submit two reports
per year (covering the second and third calendar quarters).  However,
because the Agency believes that full-year quarterly reporting will be
beneficial for both the source and the Agency, this ICR assumes most
units will elect to comply with the standard quarterly reporting
requirement.

3(e) General Guidelines 

	This ICR does not violate any of OMB's guidelines for information
collections.  

3(f) Confidentiality 

	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
"State-sensitive" 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 

Not applicable.  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

	This section lists the major categories of businesses that participate
in the NOx Budget Trading Program, the data items requested from program
participants, and the activities in which the participants must engage
to assemble or submit the required data items.

4(a) Respondents/SIC Codes 

This ICR estimates the burden for affected industry sources to monitor
NOx mass emissions so that states and EPA can track compliance with
state emission budgets and NOx control measures.  Sources may report
data directly to EPA if a source is required to meet the monitoring and
reporting requirements of Subpart H of Part 75.  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].    Large industrial combustion
sources (e.g., boilers, turbines, and internal combustion engines) are
expected to fall under SIC codes for the manufacturing sector, i.e., SIC
Major Groups 29-40 [NAICS 31-33 Manufacturing].  

4(b) Information Requested 

This section describes the industry reporting requirements needed to
enable state agencies to meet their reporting and recordkeeping
requirements in §51.122.  States must report NOx emissions data as
specified in 40 CFR §51.122.  

(i)  Data Items, Including Recordkeeping Requirements

	The former NBP units that are not participating in CAIR will continue
to monitor NOx 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.  Appendices A
and B to the CAIR ICR (EPA ICR # 2152.04) contain a list of the data
items required by the recordkeeping and reporting provisions of Part 75.

	Respondents are required by 40 CFR 75.64 to submit the quarterly NOx
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 former NBP units will (1) complete and submit appropriate
monitoring plan forms for each affected source and each affected unit at
a source; (2) conduct tests to certify the operation of monitors, and
submitting test results to EPA; (3) record hourly emissions data (this
activity generally is performed electronically); (4) conduct operation
and maintenance activities associated with the monitoring, including
quality assurance activities; (5) assure data quality, prepare quarterly
reports of emissions data and submit these reports to EPA; and (6)
respond 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). 

Emissions Trading Program (Not Active)

	This section describes the data items requested from affected sources
to facilitate an emissions trading program if active.

Allowance Tracking

	There are several data items required for allowance tracking
activities.  First, the utility must submit account certificates of
representation for the NOx authorized account representative and (if
desired) alternate NOx authorized account representative.  This
documentation, found in 40 CFR §96.13, must include:

●	Identification of the source and unit;

●	Name and contact information for the NOx authorized account
representative and alternate;

●	A list of the owners and operators of each source and unit; and

●	A certification statement and signature of the NOx authorized
account representative and alternate.

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

Year-end Compliance Certifications

On or before November 30 of each year, the NOx authorized account
representative for each source must submit a compliance certification
report covering all units at the source.  Under 40 CFR §96.30, the
report must include the following:

●	Identification of each unit;

●	Serial numbers of each NOx allowance to be deducted from the unit's
compliance account (Optional);

●	For units sharing a common stack, the percentage of allowances to be
deducted from the unit's compliance account (Optional); and 

●	Compliance certification, including certification that the unit was
operated in accordance with the emission limitation, verification that
the monitoring plan is complete and accurate, a statement that all NOx
emissions have been monitored and reported appropriately, and whether
the basis for certification has changed (and, if so, details of the
change).

5.  THE INFORMATION COLLECTED -- AGENCY ACTIVITIES, COLLECTION
METHODOLOGY, AND INFORMATION MANAGEMENT

	

	The first part of this section describes Agency (EPA) activities
related to the acquisition, analysis, storage, and distribution of the
information collected from sources that are required to submit
monitoring and test data; the second part describes the information
management techniques employed to increase the efficiency of
collections.  The third part discusses the burden or benefits of the
collection activities described in this ICR to small entities.  The last
part outlines the schedule for collecting information.

5(a) Agency Activities 

	The tasks that will be performed by EPA include processing, reviewing,
and evaluating emissions data reports submitted by the former NBP units,
and conducting appropriate audit activities to verify the information
provided. 

5(b) Collection Methodology and Management 

	Several computer systems and associated databases have been developed
to record quarterly emissions monitoring data under Part 75. ; 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 Home Page on the
internet, which includes detailed information collected from emissions
reports.  The Data and Maps section of the EPA's Clean Air Markets Home
Page on the internet includes detailed information collected from
emissions reports, and facility or source data.  Those without access to
the Internet may use the  Clean Air Markets Hotline to request
information.	

5(c) Small Entity Flexibility 

	The rulemaking, which EPA published by notice in 63 FR 57356
(October 8, 1998), would simply require States to develop, adopt, and
submit SIP revisions.  Pursuant to 5 U.S.C. 605(b), in the rulemaking,
the Administrator certified that the rule will not have a significant
economic impact on a substantial number of small entities.

	In addition, under Part 75, there are options for reduced monitoring
that may assist smaller sources.  The low mass emitter exception (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 50 tons of NOx annually (or, at the
source's election, 25 tons per ozone season) and that calculate no more
than the same amount based on specified procedures for calculating and
reporting emissions.  Qualifying sources 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" exception, 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).

5(d) Collection Schedule 

	Former NBP trading units conduct ongoing monitoring, with quarterly
reporting.  

6.  ESTIMATING THE BURDEN AND COST OF COLLECTIONS

6(a) Determining Federal Wage Rates

	  In estimating labor costs for industry, EPA used the following
amounts:  $91.94 per hour for managers and $63.74 per hour for
technicians.  These rates were used in the existing Acid Rain Program
(EPA ICR Number 1633.15, OMB Control Number 2060-0258) and are the
consistent with the Current Employment Cost Index year 2009.

	Federal Agency labor rates were assumed to be $49.38 per hour.  This
labor rate was derived from the Federal government's 2009 U.S. Office of
Personnel Management General Schedule "Salary Table 2009-GS"
(http://opm.gov/oca/09tables/html/gs.asp) using the factors in the
following table.  

Table 6-1:  Determination of Federal Wage Rates

Annual Salary of Technical Staff, GS 11, Step 3 

$52,846

Annual Cost of Supervisory Staff, GS 13, Step 3 	$75,323

	Factor (1/11) 	0.09

	 

$6,779

Annual Cost of Support Staff, GS 6, Step 6 	$35,145

	Factor (1/8)	0.13

	$4,569

Annual Applicable Salary of Permit Staff 

$64,194

Benefits	1.6

	Total Cost per FTE 

$102,710

Total Hourly Cost (total per FTE dividend divided by 2,080 hours per
year)

$49.38

6(b) Estimating Respondent Burden for Former NBP Units Not Covered under
CAIR  

This section estimates the paperwork burden and cost of submitting
monitoring plans, obtaining certification of each monitoring system,
conducting monitor quality assurance activities, and recording and
reporting data from CEM systems (or approved alternatives), and other
ancillary activities (such as responding to EPA generated error
messages, or responding to EPA audits).  This applies to the former NBP
units that continue to monitor in accordance with Part 75 under the NOx
SIP Call.

To estimate the burden and/or cost, EPA has relied on the estimates
included in the most recent Acid Rain Program ICR (OMB Control Number
2060-0258) renewal for labor hour estimates of each activity.  In
addition, the hourly labor rates for managerial, technical, and clerical
staff reflect the labor rates used in the Acid Rain ICR in 2009 dollars,
consistent with Agency ICR guidance.

Affected sources are required to complete and submit a monitoring plan
and obtain certification of each monitor (on standard forms) for each
affected unit at the source.  These plans and certifications, which are
only submitted once, have already been submitted for most units. 
Sources, however, may need to submit revised plans or even recertify if
they change some aspect of their existing plan.  New units will still
need to submit plans and certifications for the first time.  In
addition, all affected units are required to submit quarterly reports of
their emissions data to EPA; these reports include much of the basic
monitoring plan data as well.

To develop this renewal ICR, EPA relied primarily on the extensive
efforts to identify and calculate burdens for the prior two ICR renewals
and the CAIR ICR (OMB Control Number 2060-0570). 

Estimating Respondent Burden

The primary tasks performed by owners and operators of affected units
are:  (1) reviewing the regulations, forms and instructions;
(2) responding to EPA generated error messages and audits;
(3) reprogramming a DAHS and debugging the software; (4) completing
and submitting monitoring plans for each unit at the source;
(5) performing appropriate tests and providing test results to certify
each monitor; (6) performing quality assurance testing and maintenance
upon monitors; (7) assuring the quality of emissions data, preparing
quarterly reports of emissions data, and submitting reports to EPA; and
(8) fuel sampling. 

(i)  Regulatory Review. 

The estimate for time to review instructions and requirements remains
consistent with the labor estimates used in previous ICRs (four manager
hours and four technician hours) where no substantial changes have been
made to the Rule.  EPA continues to make available online fully
searchable versions of the Part 75 Emissions Monitoring Policy Manual
and the Electronic Data Reporting Instructions (Versions 2.1 and 2.2),
and is in the process of adding a fully searchable unofficial version of
Part 75 to this integrated search Webpage.  In addition, EPA in 2005
posted online a text version of its Plain English Guide to Part 75.  

(ii)  Response to Error Messages/Audits. 

The EPA provides feedback to sources so that suspected errors in
submissions by sources are noted and corrected.  With the use of the
ECMPS software, EPA believes that the burdens for this activity have
decreased over time.  At the same time, however, EPA has increased its
audit oversight and expects to conduct a number of electronic and field
audits of facilities over the next few years.  In particular, EPA
anticipates making significant use of electronic audits as a means to
provide continuous data quality improvement.  This effort will result in
increased burdens for respondents. 

(iii)  DAHS Debugging.

Each source must purchase (or create) and install computer software
designed to implement the electronic data reporting (EDR) formats
required under the Acid Rain Program.  EPA promulgated revisions to Part
75 in late 2007 to accommodate changes in EPA's data systems that manage
the data submitted by respondents.  These data system changes were
necessary to modernize EPA's data systems, and over time should
streamline reporting.  The costs of the required upgrade were analyzed
in a separate ICR that was issued in conjunction with the Part 75
revisions.  For the time period of this ICR, 2010-2012, no other changes
would require a DAHS upgrade and therefore there are no burden hours for
this activity. 

(iv)  Monitoring Plans. 

Consistent with the existing ICR, completing and submitting monitoring
plans is estimated to require an average of about 20 hours per unit
initially.  For existing units, initial monitoring plan submissions will
be received prior to the time period covered in this renewal ICR, and,
consistent with the existing ICR, EPA does not include burden hours for
existing units under this initial monitoring plan development task area
during 2010 – 2012.  The burden associated with revising the
monitoring plan is included in the time for preparing and submitting
each quarterly emissions report.

For new units, EPA has used an estimated number of new units as a
projection for the average number of new units expected in 2010 –
2012.  These units have a separate line item for initial monitoring plan
preparation.

(v)  Monitor Certification. 

For existing units, only recertifications are included in the estimated
activities for 2010 – 2012.  The Agency estimates a labor burden of 50
hours and a contractor cost of $3,400 per respondent.  The cost and
burden figures exclude the costs and burdens associated with conducting
a RATA as part of the recertification process because those costs are
incorporated within the annual QA costs for previously certified
monitoring systems. 

Under Part 75, sources are required to recertify the monitoring systems
whenever the source makes a replacement, modification, or change in a
certified CEMS or continuous opacity monitoring system that may
significantly affect the ability of the system to accurately measure or
record the NOx concentration, stack gas volumetric flow rate, NOx
emission rate, percent moisture, or to meet the QA and QC requirements. 
Recertification is also necessary whenever the source makes a
replacement, modification, or change to the flue gas handling system or
the unit operation that may significantly change the flow or
concentration profile. Examples of changes which require recertification
include: replacement of the analyzer, change in location or orientation
of the sampling probe or site; and complete replacement of an existing
CEMS or continuous opacity monitoring system.

For new units, the monitor certification costs are included in the
capital/startup costs.

(vi)  Quality Assurance. 

Quality assurance (QA) testing and maintenance upon monitoring systems
is the largest burden item under the monitoring, reporting and
recordkeeping requirements.  The requirements include daily, quarterly
and annual QA requirements, depending on the monitoring approach being
used.  For reporting units that use flow and NOx CEMS, the Agency has
developed a per unit labor burden based primarily on information
gathered from affected sources.    For units that rely on the excepted
methods under both Appendix D and E (i.e., units without CEMS), the
burden estimates are reduced further because no CEMS QA is required. 
For the relatively small number of units that require moisture
correction, labor burdens for moisture monitoring QA activities have
been added based on information supplied by an affected utility (see
Docket A-97-35, Item II-D-94). 

(vii)  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 (5) managerial review.  EPA has been improving electronic
file transfer procedures over the past few years and has been developing
automated tools that allow sources to quality assure their reports.  EPA
believes these efforts have reduced the average burdens per report over
time.  In addition, because the program is maturing, the respondents
have developed procedures and methods to increase their efficiency with
reporting.  

Estimating Respondent Costs

Table 6-4 summarizes the annual respondent costs.  The following
discussion describes how those costs were derived.

(i)  Estimating Total Capital and Annual Operations and Maintenance
Costs

Capital/start-up costs include the cost of installing required CEMS or
alternatives.  The Agency developed the capital cost estimates for the
CEM and other equipment based on EPA CEM cost models, existing ICRs, and
comments from various affected utilities.  The cost estimates vary
depending on the number and type of monitors that are required.  These
annualized capital costs are from the Rule to Reduce Interstate
Transport of Fine Particulate Matter and Ozone (Clean Air Interstate
Rule) EPA ICR #2152.04.  The annualized costs ranged from $28,879 for
units with a full set of CEMS, to $18,750 for a unit that uses NOx CEMS
and Appendix D methods, to $2,250 for units that use both Appendix D and
Appendix E methods without any CEMS.  There are no capital/start-up
costs for LME units.  A discussion of how the capital/start-up costs
were annualized follows in Section (iii), below.

In addition to capital/start-up costs, respondents incur operation and
maintenance costs (exclusive of labor costs) that reflect ongoing costs
to a unit.  These costs 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).  The cost estimates used in this renewal ICR are
generally the same as the Rule to Reduce Interstate Transport of Fine
Particulate Matter and Ozone (Clean Air Interstate Rule) EPA ICR
#2152.04, and have been derived from EPA CEM cost models, existing ICRs,
Agency staff experience under the Acid Rain Program, information
gathered during development of the 1999 and 2002 Part 75 revisions, and
supplemental estimates provided by affected utilities and others related
to the various cost items (see, e.g., EPA Air Docket A-97-35, Item
II-D-48).  The total cost for these operation and maintenance cost items
(other than fuel sampling) is estimated at $31,200 for a unit with a
full set of CEMS, while units that use alternate methodologies have
reduced costs.  

Note that testing contractor costs for certification, recertification,
and annual RATAs also 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 relative accuracy
test audits.  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.  For annual RATAs, the sources
indicated that an annual contract between a testing company and utility
is often used.  One municipal utility representative indicated that the
applicable municipal regulations required that outside contracts be on a
flat fee, not hourly, basis.

(ii)  Capital/Start-up vs. Operating and Maintenance (O & M) Costs

Capital costs 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. 

(iii)  Annualizing Capital Costs

The relevant capital costs for the emissions trading portion of this ICR
were annualized at a rate of seven percent (i.e., the annualized capital
cost was calculated assuming money to purchase the capital equipment was
borrowed at a seven percent 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 $ 28,879, per year, per unit, depending on the
type of monitoring methodology.  The capital costs are from the Rule to
Reduce Interstate Transport of Fine Particulate Matter and Ozone (Clean
Air Interstate Rule), EPA ICR #2152.02.

(iv)  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.  This is consistent with
the Rule to Reduce Interstate Transport of Fine Particulate Matter and
Ozone (Clean Air Interstate Rule), EPA ICR #2152.04.

Estimating the Respondent Universe and Total Burden and Costs for Former
NBP Units

EPA estimates that there are 122 former NBP units that will continue to
conduct monitoring in accordance with Part 75 solely under the NOx SIP
call. Table 6-4 shows the total burden and total cost for this
respondent universe.

Estimating Agency Burden and Cost

The tasks that will be performed by EPA include processing, reviewing,
and evaluating emissions data reports submitted by the former NBP units,
and conducting appropriate audit activities to verify the information
provided.  Assuming that the former NBP units will submit an average of
106 emission reports to EPA per quarter, the total annual burden
incurred by the Agency will be 848 hours.  (The annual total of 424
emissions reports is based on 90 quarterly reporting and an additional
32 Ozone Season only reporting facility counts.) The total annual cost
to EPA for processing, reviewing, and evaluating these quarterly
emissions reports will be approximately $41,875.  Table 6-5 summarizes
the Agency burden and costs associated with emissions reporting.

TABLE 6-4:  ANNUAL RESPONDENT BURDEN/COST ESTIMATES FOR FORMER NBP
UNITS

Information Collection Activity	Mgr. $91.94/ Hour	Tech. $63.74/ Hour
Respondent Hours/Year	Labor Cost/Year	Cont./ O&M Cost	Capital/ Startup
Cost	Number of Respondents	Total Hours/

Year	Total Cost/Year

1.  Review Instructions and Requirements	4	4	8	$623 	$0 	$0 	53	424
$33,004

2.  Respond to EPA Generated Error Messages, Field Audits	6	18	24	$1,699
	$0 	$0 	122	2,928	$207,273 

3.  DAHS Debugging	4	12	16	$1,133 	$0 	$0 	122	1,952	$138,182 

4.  New Unit Monitoring Plans	10	10	20	$1,557 	$0 	$0 	12	2740	$18,682

5.  Recertify Monitors	38	12	50	$4,259 	$3,400 	$0 	12	600	$51,103 

6.  Startup/Capital Items and Perform QA Testing and Maintenance	 	 
 	 	 	 	 	 	 

(a)  NOx and Flow CEMS	50	480	530	$35,192 	$31,200 	$28,879 	0	0	$0 

(b)  NOx CEM and Fuelmeter	20	375	395	$25,741 	$17,400 	$18,750 	101
39,895	$2,599,871 

(c)  App. E and Fuelmeter	5	30	35	$2,372 	$1,800 	$2,250 	21	735	$49,810

7.  Assure Data Quality, Prepare Reports (inc. monitor plan update),
Submit Reportsa	20	82	102	$7,065 	$0 	$0 	122	10,812	$748,890 

TOTAL:	 	 	 	 	 	 	 	57,586	$3,689,951

a  Based on an assumption of 90 annual reporting and 32 Ozone Season
only reporting facilities.

TABLE 6-5:  ANNUAL AGENCY BURDEN/COST ESTIMATES 

FOR FORMER NBP UNITS

Tasks	Quarterly Burden Hours per Report	Quarterly Cost per Reporta
Number of Reportsb	Total Burden per Year (hours) 

(2010–2012)	Total Cost

Process, review, and evaluate quarterly report and issue feedback
letter.	2	$98.76 	424	848	$41,875 

a  Based on an average total compensation rate of $49.38 per hour.

b  Based on an assumption of 90 annual reporting and 32 Ozone Season
only reporting facilities.

6(c) Emissions Trading Program Burdens (Not Active)

	The following sections contain exhibits and text covering the burdens
associated with the NBP Emissions Trading Program, but zeros out those
values that are now covered under other ICRs.  This option will
facilitate a possible revision to the ICR to include the costs of the
trading process and monitoring requirements, in case those costs become
reassociated with the NOx SIP Call program in the future.

	Under the NOx Budget Trading Program (NBP), EPA estimated the burden
and/or cost of each incidence of the various proposed 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. 

	The NBP required all affected sources to install a NOx emission rate
(or concentration) CEM and a flow CEM (or approved alternative). 
Affected gas- and oil-fired units could elect to use a NOx emissions
rate CEM and a fuel flowmeter.  In addition, peaking units that burn
natural gas and/or fuel oil could use an alternative method for
calculating NOx emission rates.  EPA also allowed certain low mass
emissions units to use assumed emissions factors together with
operational data to calculate emissions.

Tracking, Transferring, and Deducting Allowances 

	Labor burden and costs for collections associated with tracking and
transferring allowances are functions of the number of transfers
anticipated, and were estimated based on the number of transfers
recorded by EPA in the previous year.  

	

	Affected units had the option of identifying specific serial numbered
allowances to be deducted by EPA.  Based on past experience, EPA assumed
that approximately one fifth of all affected units would submit an
optional allowance deduction form each year.  

Estimate of Respondent Burden and Costs for Transfers and Deductions 

	Table 6-7 presents the annual burden and costs to participants in
allowance transfers and deductions that would be incurred should the NBP
be reinstated.  Participants that were not affected units would be
required to negotiate an agreement, to designate an authorized account
representative, and to file a new account application.  These activities
would be required only one time, prior to or simultaneous with the
participant's first transfer of allowances.  All participants would be
required to complete and submit allowance transfer information for each
transfer of allowances.  Under the NBP, EPA estimated about 10 hours to
designate an authorized account representative and to open a general
account, about two hours to prepare and submit information for an
allowance transfer, and about three hours to prepare and submit an
optional allowance deduction.  

	TABLE 6-6:  ANNUAL RESPONDENT BURDEN/COST ESTIMATES FOR ALLOWANCE
TRANSFERS AND DEDUCTIONS

Tasks	Burden Hours per Occurrence	Cost per Occurrencea	Total Burdenb
Total Cost

Designate an authorized account representative and file new account
application	 	 	 	 

     Managerial	3

	     Technical	7

	Prepare and submit allowance transfer information	 

	     Managerial	1

	     Technical	1

	Allowance deduction form (optional)	 

	     Managerial	1

	     Technical	2

	TOTAL	 	 

a  Insert dollar year.

b Assumes 0 participants file new account applications, 0 transfers are
made, and 0 optional deduction forms are submitted.

Estimate of Agency Burden and Costs for Transfers

	Agency burden and costs would be divided into those costs associated
with enhancing a tracking system, and those associated with transferring
and deducting allowances.

Allowance Tracking System

	Under the NBP, the allowance system regulations set the general
requirements for the tracking system, which was developed by EPA.  In
order to track allowances, the allowance tracking system required
information on:  (1) allowance allocations for each affected facility;
(2) allowance transfers and deductions; and (3) allowance holders.  EPA
made the information compiled in the allowance tracking system publicly
available in several formats on the internet and worked to continually
improve electronic access.

Allowance Transfer System

	Under the NBP, EPA estimated that it would require an average of one
hour for each transfer notification on paper.  Upon receipt of an
optional allowance deduction form, in hard copy, EPA recorded the data
into the EPA data system.  This was estimated to take about 30 minutes
per form.  Table 6-8 summarizes Agency burden and cost estimates for
recording and transferring allowances.

TABLE 6-7:  ANNUAL AGENCY BURDEN/COST ESTIMATES 

FOR ALLOWANCE TRANSFERS

Tasks	Burden Hours Per Occurrence	Cost Per Occurrencea	Total Burdenb
(Hours)	Total Cost

Review allowance transfer information, record transfer, and notify
transfer participants.	1

	Enter deduction data and deduct allowances.	0.5

	TOTAL	 

	a Insert dollar year.

b Assumes 0 transfers and 0 optional deduction forms are submitted
annually.

Annual Compliance Certifications

Respondent Burden and Cost Estimates for Annual Compliance

	When the trading program was in place, each year between October 1 and
November 30, annual compliance certification was required from all
affected sources.  Each authorized representative was required to submit
one annual compliance certification report that included a list of all
affected units he or she represents.  Table 6-9 presents respondent
burden and costs for annual compliance certification.



TABLE 6-8:  ANNUAL RESPONDENT BURDEN/COST ESTIMATES FOR ANNUAL
COMPLIANCE CERTIFICATION

Tasks	Burden Hours Per Occurrence	Cost Per Occurrencea	Total Burden
(Hours)	Total Cost

Annual compliance certification reportb	 	 	 	 

        Managerial	1

	        Technical	4

	Common stack allowance Deduction formc	 

	         Managerial	0.5

	          Technical	2

	TOTAL	   

	a Insert dollar year.

b Assumes 0 reports covering 0 affected units are submitted. 

c Assumes 0 optional common stack allowance deduction forms are
submitted.

Estimate of Agency Burden and Costs for Annual Compliance

	Under the NBP Emissions Trading Program, the three primary tasks
performed by the Agency during annual compliance certification were;
reviewing and processing the annual form submissions, calculating and
deducting and sending out allowance deduction or reconciliation reports
to the source designated representatives.  Table 6-10 presents the
Agency's annual burden and cost for annual compliance certification.

TABLE 6-9:  ANNUAL AGENCY BURDEN/COSTS FOR ANNUAL 

COMPLIANCE CERTIFICATION

Tasks	Burden Hours Per Occurrence	Cost Per Occurrencea	Total Burden
(Hours)	Total Cost

Review and process annual compliance certification submissionsb	 1	 

Common stack allowance Deduction form b	 0.5	 

         Send allowance reconciliation reports b	0.5

	TOTAL	   

	

a  Insert dollar year.

b  Assumes 0 reports covering 0 affected units are submitted.

6(d) Summary of Burden Hours and Costs

Table 6-10 summarizes the annual aggregate burden and cost estimates to
both the respondents and the agency for the period of 2010 through 2012.
 

TABLE 6-10:  AGGREGATE ANNUAL RESPONDENT AND AGENCY BURDEN AND COST OF
COLLECTIONS (2010 – 2012)

Program	Total Annual Burden (Hours)	Total Annual Costsa

Annual Industry Respondent Burden	57,586	   $3,689,951

Annual Agency Burden 	                          848 	 $41,875 

TOTAL	58,434	   $3,731,826

a  2009 dollars.

6(e) Reasons for Change in Burden

Hourly burden estimates in this ICR renewal are reduced from those in
the previous ICR.  Decreases are due to the shift of trading activity
from the NOx Budget Trading Program to the CAIR NOx trading programs.

6(f) Burden Statement

	

	The annual public reporting and recordkeeping burden for this
collection of information is estimated to average 136 hours per
response.  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.     

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ༀ梄㄁Ĥ葞Ũ摧⇠਀1301 Constitution Avenue, NW, Washington,
D.C.  The EPA Docket Center Public Reading Room is open from 8:30 a.m.
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telephone number for the Reading Room is (202) 566-1744, and the
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and to access those documents in the public docket that are available
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