  

INFORMATION COLLECTION REQUEST RENEWAL

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

This ICR renewal covers sources submitting emissions under the NOx SIP
call program who are not subject to the Clean Air Interstate Rule
(CAIR).  Sources that report emissions under CAIR are covered under OMB
number 2060-0570.  Also, the Agency may, at some future time,
reinstitute the NOx Budget Trading Program.  For example, this might
happen if both the CAIR and CAIR replacement rules were vacated by the
Court. 

DRAFT

March 3, 2010

INFORMATION COLLECTION REQUEST RENEWAL

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

(JUNE 2007 THROUGH DECEMBER 2008)

SUPPORTING STATEMENT

1.	IDENTIFICATION OF THE INFORMATION COLLECTION

	1.1	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
now 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.  This ICR estimates the burden hours and costs incurred by
industry as a result of reporting requirements of the rule.  The rule
does not require an emissions trading program, but it strongly
encourages such a trading program, and it is anticipated that every
State will adopt a trading program for fossil fuel-fired  NOx sources
serving electrical generators 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.  For this ICR, it is
assumed that each State will adopt the Federal model trading program,
and the burden associated with such a program is evaluated.  This
trading program burden would include the paper work burden 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. The monitoring and reporting requirements
of a trading program will require capital and labor expenditures by
industry, and these are evaluated.  Reporting requirements under the
trading program can often be used to satisfy the §51.122 reporting
requirements, but other requirements of the trading program are specific
to the trading program and will often be discussed here under separate
headings.

States are required to report data annually for those point, area,
nonroad mobile, and highway mobile sources for which they adopt control
measures to meet their NOx SIP call requirements.  These annual reports
must include ozone season NOx emission inventories.  States which must
comply in 2003 must report a statewide inventory of all NOx sources
every 3 years starting in the year 2003 for the 2002 inventory.  While
the States are expected to use their existing emission inventory data
collection and electronic reporting mechanisms for submitting the data
to EPA, some modifications will be necessary to account for the
reporting of ozone season emissions data.  The data reports may be
provided using one of several procedures, including submittal in
Emission Inventory Improvement Program/Electronic Data Interchange
(EIIP/EDI) format, or in proprietary format based on the EIIP data
model.  The EPA will allow for the direct reporting of point source data
from sources to EPA if the sources are subject to the monitoring and
reporting provisions of Subpart H of 40 CFR Part 75.

1.2	Information to Be Collected

	Emissions Trading Program

	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.  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 regionwide consistency needed to foster
the allowance market, the designated representative of the owners and
operators of each source with affected units will be 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

	Participants in the allowance transfer system now have two options for
submitting transfers: to 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 be required to file a one time
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

	Allowance transfer notifications may be submitted to EPA electronically
or on paper.  Emissions reports must be submitted electronically. All
Phase II permit applications must be submitted on paper.

	The allowance transfer submittal is used to record allowance transfers
for compliance purposes and to track the disposition of all allowances
in the system.  Applications for allowances from the Energy Conservation
and Renewable Energy Reserve provide information on the emissions
avoided through the use of energy conservation measures and renewable
energy, and are used to allocate allowances from the reserve.

	Acid rain permit applications are used to issue operating permits to
affected sources under the Acid Rain Program.  Because the permit
applications and permits are public documents, they provide an
opportunity for the affected public to examine activities undertaken by
affected sources.  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. 

	Monitoring plan submissions are used by EPA to verify that the
emissions monitoring system at a unit meets the requirements set forth
in Title IV of the Act and in the implementing regulations.  Results of
continuous emission monitoring system performance tests allow EPA to
certify that monitors perform well enough to produce accurate emissions
data.  Emissions data is used to monitor compliance with emissions
requirements under Title IV and to provide a basis for analyzing
progress in meeting air quality objectives.  Allowance tracking
information, emissions data, and the contents of permit applications all
provide information for the allowance market and the general public.  

		(iii) 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 is included as part of
start-up costs.

		(iv) 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.

		(v) Year-end Compliance Certifications

	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.

		(vi) Allowance Transfers and Tracking

	All participants in the allowance transfer system will be required to
complete and submit an allowance transfer form for each allowance
transfer.  Participants in the transfer system that are not affected
sources, such as allowance brokers, fuel suppliers and environmental
groups will also be required to file a one time account information
application to establish an account in the Allowance Tracking System
(ATS).

	The respondent reporting burden for this collection of information is
estimated to be 1,971,276 hours each year for the years 2007 through
2009.  The burden to EPA is estimated to be 31,974 hours in each year
for the years 2007 through 2009.

	1.3 	Terms of Clearance

Below are the 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 described
in this section 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  tc "2(b) Practical
Utility/Users of the Data " \l 3 

	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 beginning in 2003, for
those States voluntarily choosing early compliance or 2004 for other
States, or is off track to meet its statewide budget by 2007, 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. 

	The EPA will use data from the 2007 inventory and beyond to assess how
each State's SIP actually performed in meeting the statewide ozone
season NOx emissions budget.  If emissions exceed the required budget in
any year after 2006, the control strategies in the SIP will need to be
strengthened.  The EPA will evaluate the circumstances for the budget
failure and may issue a call for States to revise their SIPs, as
appropriate.

Emissions Trading Program

(i) Permits

	Permit applications, including proposed compliance plans, will be used
by EPA to issue operating permits and to allocate allowances.  A permit
application will be legally binding on the owners, operators, and
designated representative of a source until the actual permit is issued.
 This aspect of the permit application reduces significantly the
uncertainty imposed on a source due to possible delays at EPA.  Affected
sources may rely on the permit for information on the requirements with
which they must comply.  Because permit applications and permits will be
public documents, they may be used by the public to examine activities
undertaken by affected sources.

		(ii) Emissions Monitoring

	Data from emissions monitoring is indispensable to successful
implementation of the NOx Trading Program for two reasons:

The primary purpose of the NOx Trading Program is to assist States in
the attainment of the ozone national ambient air quality standards
(NAAQS) by reducing the adverse effects of the transport of ozone and
ozone precursors from upwind States by reducing annual emissions of
nitrogen oxides; and

EPA can only enforce the program by comparing, for each affected unit,
emissions data and the number of allowances held.

	(iii) Year-end Compliance Certification

	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.

	(iv) Allowance Transfers and Tracking

	Information collected on allowance transfers will 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 will 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 will help to provide the accountability to allow the NOx
Trading Program to function without more stringent command and control
approaches.

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.  However,
since these requirements are being established to support an ozone
season reduction program and since existing provisions do not require
the collection of ozone season inventories, some additional reporting
will be required.  The EPA requires that States report annually data for
all point sources that are part of a control measure that was adopted
for purposes of meeting the NOx budget.  If States act in accordance
with OTAG recommendations for setting the emissions budgets, the sources
controlled will all be point sources emitting 100 tons per year
(tpy) of NOx.  The 100 tpy threshold is consistent with the NOx
reporting threshold for the existing annual emission inventory. 
However, the rule does allow States the option of defining the NOx point
source threshold to be less than 100 tpy.  

	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 Subpart H 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.  

	Currently, there are no existing annual reporting requirements for
area, nonroad mobile, and highway mobile source emissions.  For the
purposes of 40 CFR 51.122, an area source is any anthropogenic source
that is not included in the point, nonroad mobile, or highway mobile
source inventories.  The EPA requires that the State report annually
area source NOx emissions for only those stationary area source
categories for which the State adopts control measures for the purpose
of meeting its NOx budget.  For nonroad mobile and highway mobile
sources, the EPA requires that the State report annually NOx emissions
for only those source categories for which the State adopts control
measures that are more stringent than Federal measures for the purpose
of meeting its NOx budget.  Based on the recommendations of OTAG, it is
not expected that States will adopt area, nonroad mobile, or highway
mobile source control measures to meet their NOx budgets.  However, if
one or more States do adopt such measures, annual reporting of emissions
will be necessary to track the States’ progress toward meeting their
NOx budgets.

	The rule contains a requirement for States to report statewide point,
area, nonroad mobile, and highway mobile source NOx emissions data every
3 years starting with the inventory year 2002.  The data reported would
be ozone season emissions data for each third year and would include
data from all source categories in the State regardless of whether
sources are being controlled to meet a NOx budget.  This 3-year cycle
reporting requirement coincides with the schedule for the existing
periodic emission inventory reporting requirement for the States.

Emissions Trading Program

	Almost all information requested from respondents under this proposed
ICR 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.  In
addition, EPA intends to integrate the reporting requirements for the
NOx Trading Program into existing electronic data reporting (EDR)
formats.  The EDR formats are used by Acid Rain Program units under
Title IV of the Act and units subject to the NOx Budget Program
implemented in the Ozone Transport Commission (OTC) region under Title I
of the Act.  Thus, for units subject to the Acid Rain or OTC quarterly
reporting requirements, only one submission will need to be made on a
quarterly basis.

	3(b) Public Notice Required Prior to ICR Submission to OMB  tc "3(b)
Public Notice Required Prior to ICR Submission to OMB " \l 3 

	For the renewal ICR, a public notice was published in the Federal
Register on December 6, 2006 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-OAR-2006-0947, which is available for   SEQ
CHAPTER \h \r 1 online viewing at   HYPERLINK
"http://www.regulations.gov"  www.regulations.gov ,   SEQ CHAPTER \h \r
1 or in person viewing at the Air and Radiation Docket in the EPA Docket
Center (EPA/DC), EPA West, Room B102, 1301 Constitution Ave., NW,
Washington, DC).

	3(c) Consultations  tc "3(c) Consultations " \l 3 

	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 workshop participants generally thought that existing reporting
requirements for attainment SIPs should be used whenever possible to
minimize any new reporting burden.  The States further recommended that
the degree of reporting rigor should be directly related to the sectors
that the State chooses to control in its NOx transport strategy. 
Reporting every 3 years was considered feasible for all source sectors. 
Reporting on an annual basis was considered both achievable and
necessary for all source sectors that a State chooses to regulate
specifically for the purpose of meeting the SIP call NOx budgets.  This
would include all NOx sources within the State which are subject to
measures included by the State in its transport SIP revision in response
to the SIP call.  In addition, it was noted that sources or source
categories that would be participating in a trading program would need
to meet the reporting protocols specific to that program.  Consideration
was also given to establishing uniform monitoring and reporting
requirements and a centralized data base for reporting for other
sources.  Several States indicated support for this concept if there
were easy access to the data by all parties.  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.

Emissions Trading Program

	The requirements for the NOx Trading Program have been developed using
both the methodology found in existing trading programs as well as
consultations with interested parties.

	EPA considered the strategy taken in the OTC's NOx Budget Program, a
trading program developed for use in eleven States and the District of
Columbia.  EPA also considered the results of the findings of the Ozone
Transport Assessment Group (OTAG), especially OTAG's Trading and
Incentives Workgroup.  Members of OTAG include 37 States, the District
of Columbia, EPA, and industry and environmental group participants. 
OTAG conducted meetings in 1995 and issued final recommendations in 1997
concerning ozone transport.  EPA also considered the work of the RECLAIM
program, another cap-and-trade market based system.

	Prior to proposing the ICR for the FIP rule, EPA also held two public
workshops in 1997, lasting two days each.  Over 150 people participated
in each of these workshops, including States and industry
representatives.  EPA received comments following the workshops and
considered and incorporated those comments into the proposed ICR along
with comments received during the meetings.

	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  tc "3(d) Effects of Less
Frequent Collection " \l 3 

	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.  In addition, a triennial
report of all NOx sources statewide is vital in enabling EPA to track
States’ progress towards meeting the NOx budgets.  Because the NOx
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.  

Emissions Trading Program 

	Submittal of allowance trading information and compliance information
on an annual basis provides necessary feedback on the allocation of
allowances.  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.  Because the NOx
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.

	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.

	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 all
units will elect to comply with the standard quarterly reporting
requirement.

	3(e) General Guidelines  tc "3(e) General Guidelines " \l 3 

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

	3(f) Confidentiality  tc "3(f) Confidentiality " \l 3 

	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  tc "3(g) Sensitive Questions " \l 3 

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  tc "4(a) Respondents/SIC Codes " \l 3 

	The reports submitted under this ICR will be submitted by the State air
pollution control agencies for which NOx budgets will be established,
which include the following 20 States and the District of Columbia: 
Alabama, Connecticut, Delaware, Illinois, Indiana, Kentucky,
Massachusetts, Maryland, Michigan, North Carolina, New Jersey, New York,
Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia,
and West Virginia.  Georgia and Missouri have also been added to this
analysis for 2005 under the assumption that they will be covered under a
Phase II rule making which will require reporting by that time.  The
affected SIC would be 9511 - Air and Water Resource and Solid Waste
Management [NAICS 92411 Administration fo Air and Water], which includes
government environmental protection and control agencies, as well as
pollution control agencies.

	This ICR also estimates a burden for affected industry sources to
monitor NOx mass emissions and demonstrate compliance with 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.  States have chosen to control larger electric utility and
industrial combustion point sources to comply with their NOx emissions
budgets for 2007.  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]. 
Cement kilns fall primarily under SIC 327 - Concrete, Gypsum, and
Plaster Products) [NAICS 3273 Cement Manufacturing and 3274 Gypsum
Product Manufacturing].  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].  In addition, States have the option
of controlling area, nonroad mobile, and highway mobile NOx sources for
meeting their NOx budgets.  However, States have not chosen to control
these sources.  The Agency's action under Phase II is expected to
eventually also impose additional, non-trading program requirements on
internal combustion engines (potentially applicable in a variety of
industries, with significant number in SIC 492 - Gas Production and
Distribution [NAICS 2212 Natural gas Distribution]).

	4(b) Information Requested  tc "4(b) Information Requested " \l 3 

	This section describes State reporting and recordkeeping requirements
and the activities (i.e., burden items) associated with the requirements
in §51.122.  States must report NOx emissions data as specified in 40
CFR §51.122.  States are required to submit the appropriate emissions
data within 12 months of the end of the inventory year (e.g., a
statewide NOx emissions inventory for the year 2005 would be required by
December of 2006).  The activities that an affected source would have to
conduct are also listed.

   

		(i) Data items, including recordkeeping requirements  tc "(i) Data
items, including recordkeeping requirements " \l 4 

Reporting requirements

	Many of the required emissions data elements are already being provided
to the EPA under existing annual point source reporting requirements, as
well as periodic SIP inventory reporting provisions for point, area and
nonroad mobile, and highway mobile sources.  For example, the
Consolidated Emissions Reporting Rule (67 FR 39602, June 10, 2002)
requires reporting of many of the same data elements that are required
in the NOx SIP call.  The Consolidated Emissions Reporting Rule (CERR)
requires reporting of annual emissions while the NOx SIP call §51.122
requires reporting only for the ozone season which is May 1 through
September 30 of a year.  The following lists the data items required by
the NOx SIP call for point, area, nonroad mobile, and highway mobile
sources, and identifies new data items not required to be included in
emission inventories currently reported to EPA.

Point sources

	For NOx point sources controlled for purposes of meeting the NOx
budgets, States must annually report the following data items, unless
the point sources are reporting directly to EPA under Subpart H of 40
CFR Part 75.  The new data items are identified with an asterisk (*).

Inventory year

State Federal Information Processing System (FIPS) code

County FIPS code

Federal ID code (plant)

Federal ID code (point)

Federal ID code (process)

Federal ID code (stack)

Site name

Physical address

Source Classification Code (SCC)

Pollutant code

Work weekday emissions

Fuel heat content (annual)

Activity throughput (annual)

Emission factor

Spring/Summer/Fall throughput (%)

Hour/day in operation

Operations start time (hour)

Day/week in operation

Week/year in operation

Area designation*

Ozone season emissions*

Fuel heat content (seasonal)*

Source of fuel heat content data*

Activity throughput (seasonal)*

Source of activity throughput*

Source of emission factor*

	Additional reporting requirements apply every 3 years (triennially),
starting for the inventory year 2002 (or 2005 for areas with a 2004
compliance date).  For these years, States must submit a statewide NOx
point source inventory for all controlled and uncontrolled sources.  In
addition to the data items required for annual reporting, the following
elements must be reported to EPA triennially:

Latitude/longitude

Stack height

Stack diameter

Exit gas temperature

Exit gas velocity

Exit gas flow rate

Standard Industrial Classification (SIC)

Boiler/process throughput design capacity

Maximum design rate

Maximum capacity

Primary control efficiency

Secondary control efficiency

Control device type

Area sources

	The following lists the data elements States must report annually for
area sources controlled for the purpose of meeting the NOx budgets. 
States must report these same data elements for all area sources in
their statewide triennial inventory, starting in 2002, (or 2005 for
certain States).  The new data items are identified with an asterisk
(*).

Inventory year

State FIPS code

County FIPS code

SCC 

Pollutant code

Emission factor

Activity throughput level (annual)

Control efficiency (%)

Spring/Summer/Fall throughput (%)

Hour/day in operation

Day/week in operation

Week/year in operation

Ozone season emissions*

Source of emission factor*

Activity throughput level (seasonal)*

Source of activity throughput data*

Source of emissions data*

Highway and nonroad mobile sources

	The following lists the data elements States must report annually for
highway mobile and nonroad mobile sources controlled for purposes of
meeting the NOx budgets.  States are required to report annually for
those highway and nonroad mobile sources covered by State-adopted
regulations that are more stringent than Federal standards.  States must
report these same data elements for all highway and nonroad mobile
sources in their statewide triennial inventory starting in 2002 (or
2005), and for 2007.  The new data items are identified with an asterisk
(*).

Inventory Year

State FIPS Code

County FIPS Code

SCC

Pollutant code

Summer work weekday emissions

Emission factor

Activity

Ozone season emissions*

Source of emission factor*

Source of activity data*

Source of emissions data*

Justification for additional data items

	Ozone season emissions are emissions for the period May 1 through
September 30 of a year.  Emission estimates representing this period are
required in order to demonstrate that the reductions required by 40 CFR
51.121 are made during this same period.  The EPA is also requiring
States to provide an example ozone season calculation, along with
sufficient information for EPA to verify the calculated value of ozone
season emissions.  This calculation, as well as two additional seasonal
data elements (i.e., fuel heat content for point sources,
activity/throughput level), will facilitate quality assurance review of
the seasonal emissions data.  Other data fields for providing the source
of fuel heat content data, source of emissions data, source of emission
factor, and source of activity throughput data will also assist EPA in
their NOx budget verification procedures.

	The EPA is also requiring the “Area Designation” element so that
States that establish an offset pool composed of actual emission
reductions achieved through compliance with the SIP call NOx budgets can
track whether they are obtaining creditable offsets as specified in
Section 173(c) of the Act (which requires that major sources obtain
offsets from areas with equal or higher nonattainment classification).

Recordkeeping requirements

	40 CFR 51.122 specifies that States are to comply with existing SIP
recordkeeping and data availability requirements as outlined in 40 CFR
Part 51.116.  As such, there are no recordkeeping burden items that are
incremental to existing recordkeeping requirements.

		(ii) Respondent activities  tc "(ii) Respondent activities " \l 4 

	The one-time State burden items associated with this ICR include:

	Prepare SIP revision for submission to EPA in response to the NOx SIP
call.

Read the reporting requirements of the rule;

Submit example ozone season emissions calculations to EPA [§51.122(g)];

Create 7 additional data fields in electronic point source data base
file, 5 additional data fields in the area source data base file, and 4
additional data fields in each of the nonroad mobile and highway mobile
source electronic data base files for new data items [§51.122(c), (d),
(e)];

Develop procedures by which to estimate stationary area source NOx
emissions for triennial statewide reporting requirements [to comply with
§51.122(b)(2), (3)];

Develop allocation for estimating county-level vehicle miles traveled
(VMT) from State-level VMT data [to comply with §51.122(b)(2), (3)];
and

Review Title V permit revisions from controlled sources
[§51.121(h)(1)].

	The one-time industry burden items associated with this ICR include:

Read the reporting requirements of the rule;

Revise Title V permit to incorporate NOx monitoring [§51.121(h)(1)];
and

Install and perform testing to certify NOx CEMS or other approved
monitoring system [§51.121(h)(1)].

Annual State burden items associated with this ICR include:

Determine ozone season emissions for controlled sources [§51.122(c)(1),
(2)];

Notify the appropriate EPA Regional Office when submitting an annual,
triennial, and 2007 NOx inventory [§51.122(h)]; and

Submit electronic NOx budget emissions report [§51.122(b)(1)].

	The annual burden items for industry associated with this ICR include:

For units subject to Title IV monitoring requirements, reporting
compliance information to a State or EPA [§51.121(h)(1)].

For units not already subject to Title IV monitoring requirements:

Perform general operations and maintenance activities (e.g., quality
assurance testing, calibrations, cylinder gas audits)[§51.121(h)(1)];
and

Prepare and submit reports to demonstrate compliance, including update
of monitoring plan [§51.121(h)(1)].

	Triennial State burden items associated with this ICR include:

Prepare statewide inventory for area, nonroad mobile, and highway mobile
sources, including a determination of ozone season emissions for all
sources [§51.122(b)(2)]; and

Compile summary report of statewide NOx emissions for submittal to EPA
[§51.122(b)(2), (h)].

	There are no triennial industry burden items associated with this
collection in addition to the burdens listed above.

Emissions Trading Program

	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.  Except where explicitly noted below, these
requirements only apply to the trading program units, not the
non-trading units (internal combustion engines and cement kilns).

		(i)  Data Items, Including Recordkeeping Requirements

			(a) 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 5 years
pursuant to the general requirements imposed for Title V permitted
facilities.

			(b) Year-end Compliance Certifications

	On or before
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	Identification of each unit,

	Serial numbers of each NOx allowance to be deducted from the unit's
compliance account,

	For units sharing a common stack, the percentage of allowances to be
deducted from the unit's compliance account, 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).

	(c) Monitoring and Reporting

	Affected trading program sources would be required 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 this ICR 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.  For purposes of the NOx Trading
Program, EPA currently is not requiring electronic submission of
reports, but intends to do so after finalizing proposed revisions to
Part 75.  For purposes of this ICR, the labor burdens and other costs
are calculated on the assumption that such a requirement will be in
effect at the time reporting is required under this program.

	(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
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 (1) participants in allowance transfers, (2)
applicants for allowances from the Conservation and Renewable Energy
Reserve, (3) permit applicants, (4) designated representatives of
affected sources that are required to submit monitoring plans and
emissions data, (5) participants in the annual auction, and (6) the
opt-in program, and (7) NOX permitting.  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  tc "5(a) Agency Activities " \l 3 

	The EPA activities associated with 40 CFR §51.122  are as follows:

Review/verify ozone season emissions calculation submitted by each
State;

Receive and store emission inventory data submitted by each State and by
point sources;

Review emissions data submitted annually by each State to track each
State’s progress toward meeting its NOx budget;

Review summary report of statewide NOx emissions submitted by each State
every 3 years; and

Respond to questions from States and point sources concerning electronic
submittal of emissions data.

Emissions Trading Program

	The major EPA activities related to the NOx Trading Program include (1)
maintenance and administration of the allowance tracking system (NATS),
(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 ozone season emissions, and (6) reviewing
emissions data submitted annually to track each State’s progress
toward meeting its NOx budget and creating a summary report of statewide
NOx emissions every three years.  EPA will use a computer system called
the Emissions Tracking System (ETS) 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  tc "5(b) Collection
Methodology and Management " \l 3 

	States must report emission inventory data to EPA in electronic form. 
EPA supports specific electronic data reporting formats and requires
States to report data in a format consistent with these.  Because
electronic reporting technology continually changes, States should
contact the Emission Factor and Inventory Group (EFIG) for the latest
specific formats.  States can find information on the current formats at
the following Internet address:   HYPERLINK
"http://www.epa.gov/ttn/chief"  http://www.epa.gov/ttn/chief  .  States
may also call EPA’s Info CHIEF help desk at (919)541-1000 or email to 
 HYPERLINK "mailto:info.chief@epa.gov."  info.chief@epa.gov. 

	One option for annual reporting (not for third year reports) is to have
sources submit the data directly to EPA.  This option will be available
to any source in a State that is both participating in a trading program
meeting the requirements of Part 96 and that has agreed to submit data
in this format.  The EPA will make both the raw data submitted in this
format and summary data available to any State that chooses this option.

Emissions Trading Program 

		

	To ensure consistency nationwide and to expedite data entry, EPA will
require that standard electronic data reporting (EDR) formats used for
Part 75 reporting be used to submit the information collected for the
NOx Trading Program.  As discussed in Section 4(b), above, upon
promulgation of currently proposed Part 75 revisions, EPA intends to
require that data be sent via direct electronic submission to EPA using
the revised EDR format.  Non-trading program sources will have to report
results of performance tests or excess emissions, as applicable
consistent with the reporting required under 40 CFR Part 60.

	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. EPA
also has made available an On-line Allowance Transfer System to permit
online allowance transfers and allowance account maintenance activities.
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, allowance transfer activity, and facility or source
data.  Those without access to the Internet may use the Acid Rain
Hotline to request information.	

	5(c) Small Entity Flexibility  tc "5(c) Small Entity Flexibility " \l 3


		The State control agencies affected by this rulemaking are not
considered to be small entities.  To support States with fewer
sophisticated processing capabilities, the EPA has developed mainframe
and PC software to facilitate State efforts in storing, maintaining, and
reporting source data.  A number of Territories and smaller States have
adopted these and use them to make their submissions.  By providing a
number of means whereby the respondents can make their submissions,
respondents are able to select those which minimize their efforts and
costs and still use some type of electronic technology. 

	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.

Emissions Trading Program 

The NOx Trading Program only includes fossil fuel-fired units
(stationary boilers, combustion turbines, and combined cycle systems)
that serve an electrical generator of capacity greater than 25 MWe, and
any other fossil fuel-fired units that have a heat input capacity
greater than 250 mmBtu/hr.  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 are two small unit exceptions that are applicable to the NOx
Trading Program.  The first provides for reduced monitoring and the
second provides for an exemption from participation in the program. 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
utilities 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.

	The second exception provides an exemption for units that restrict NOx
mass emissions to less than 25 tons during the ozone season.  To be
eligible, the unit must accept a federally-enforceable operating hour
permit limit.  The unit would calculate the operating hour restriction
by dividing 25 tons by the unit's maximum potential hourly NOx mass
emissions.

	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  tc "5(d) Collection Schedule " \l 3 

	Beginning for the inventory year 2003 (or 2004), the EPA is requiring
States to annually submit ozone season inventories for all NOx sources
for which States adopt control measures to meet their NOx budget.  Every
3 years, starting for the inventory year 2002 for those States requiring
compliance in 2003, statewide NOx inventories of all controlled and
uncontrolled sources are required. 

	For all of the above reporting activities, 40 CFR 51.122 specifies that
States submit the appropriate emissions data within 12 months of the end
of the inventory year (e.g., a statewide NOx emissions inventory for the
year 2005 would be required by December of 2006).

6.	ESTIMATING THE BURDEN AND COST OF COLLECTIONS

		6(a) Estimating Respondent Burden  tc "6(a) Estimating Respondent
Burden " \l 3 

	The State burden for complying with the reporting requirements under
§51.122 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 annual point source inventory
requirements, States are required to submit the emissions data specified
in Section 4(b)(i) of this supporting statement (excluding the
incremental data elements identified).  Since most of the data which the
States are required to update for point sources (area codes, addresses,
or other physical parameters) do not change often, the updating of more
than 90 percent of all source records is minimal and typically involves
only changes in emissions and closely related information (fuel usage,
process rates, seasonal throughput, etc.).

	Other ongoing State activities that support existing inventory
reporting requirements include: Collecting emissions data and other
associated information;

Quality assuring emissions data;

Training staff in coding and submissions techniques;

Creating information (e.g., assigning EPA codes to State point source
records);

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.

	Under the existing periodic inventory, States with ozone nonattainment
areas (or in the ozone transport region) must report triennially to EPA
area, nonroad mobile, and highway mobile source emissions for the
nonattainment areas.  For 40 CFR 51.122, EPA is requiring that States
report statewide area, nonroad mobile, and highway mobile source ozone
season emissions every year if the State adopts control measures for
these sources specifically for the purpose of meeting the NOx budget. 
This could be an incremental burden to States each year.  However, no
burden was estimated for States to annually report area, nonroad mobile,
or highway mobile source emissions to EPA for years that do not coincide
with the existing 3-year cycle inventory.  This is because OTAG modeling
results indicate that States will most likely control large stationary
NOx emission sources rather than area, nonroad mobile, or highway mobile
emission sources to meet their NOx budgets.

		One-time activities  tc "One-time activities " \l 4 

	 The time for States to read and interpret the reporting requirements
of the §51.122 rule was estimated to be 1 hour for technical staff and
1 hour for managerial staff.  The time required for preparing and
submitting example ozone season emissions calculations to EPA would
vary, depending on the complexity of the calculations.  States that
estimate seasonal emissions by applying a factor of 5/12's to their
annual emissions inventory can complete this task in minimal time. 
States that account for factors such as changes in activity levels or
fuels would require more time.  On average, it was estimated to take 10
hours for technical staff and 0.5 hour for managerial staff.  Another
one-time activity involves a State modifying its emissions data bases to
incorporate 7 additional data items for point sources, 5 additional data
items for area sources, and 4 additional data items for highway and
nonroad mobile sources.  Technical staff time to perform this activity
was estimated to be 60 hours, and managerial staff time was estimated to
be 3 hours.

	A one-time effort is expected for the States to establish procedures to
estimate statewide ozone season NOx emissions from stationary area
sources.  Area source NOx emissions in the OTAG inventory are due to
stationary fuel combustion, incineration and open burning, and wildfires
and prescribed burning.  It is assumed that States would develop a
spreadsheet or data base containing county-level activity indicators
(e.g., population, employment, forest acreage) to allocate activity data
typically available at the State level to the county level.  It will
also be necessary to account for any controls or seasonal restrictions
that would impact NOx emissions.  The average respondent time to develop
the procedures to predict county-level area source NOx emissions for an
entire State was estimated to be 80 hours of technical staff time and 4
hours of managerial staff time.

	For highway mobile sources, it will be necessary for States to prepare
a procedure for estimating county-level VMT as input to EPA’s MOBILE
model.  It was assumed that States will distribute statewide VMT
available from the Federal Highway Administration’s (FHWA) Highway
Performance Monitoring System (HPMS) to the county level using a
surrogate activity indicator such as population.  In addition, any
highway mobile source controls applicable to a county must be identified
and accounted for in the emission estimates for a county.  The one-time
burden for performing these activities was estimated to take 40
technical hours and 2 managerial hours. 

	Lastly, the burden for a State to review a Title V permit revision
submitted by controlled sources was estimated to be 0.8 hours of
technical staff (i.e., 4 hours annualized over the 5-year permit cycle).

		Annual Activities  tc "Annual Activities " \l 4 

	Annual State burden items associated with this ICR are as follows. 
States must notify the appropriate EPA Regional Office when submitting
an annual or triennial NOx inventory.  This activity was estimated to
take one hour per year for managerial staff.  An additional one hour per
year was estimated for technical staff to prepare and submit an
electronic NOx emissions budget report.  Most of the data collection
activities associated with the annual inventory are already being done
to meet existing inventory requirements.  However, there is additional
burden associated with compiling and quality-assuring the ozone season
inventory.  The additional annual burden for this activity was estimated
to be 16 hours per year for technical staff and one hour per year for
managerial staff.

		Triennial Activities  tc "Triennial Activities " \l 4 

	Every 3 years, States are required to submit ozone season emissions
data for all point, area, nonroad mobile, and highway mobile sources of
NOx within the State.  States are already submitting a statewide
emissions inventory of all point sources under the existing annual
inventory requirements.  However, a burden is expected for States to
develop statewide NOx stationary area source, nonroad mobile source, and
highway mobile source inventories every 3 years.  Under the existing
periodic SIP inventory requirements, emissions from these sectors were
only determined
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	For stationary area sources, collecting activity data needed to
allocate State-level activity data to the county-level and estimating
area source emissions; (160 technical hours; 8 managerial hours);

	For nonroad mobile sources, estimating emissions (240 technical
hours; 12 managerial hours); and

	For highway mobile sources, estimating emissions using EPA’s
MOBILE model6 (120 technical hours; 10 managerial hours).

	The above hour estimates also account for generating and
quality-assuring ozone season emissions.  For the highway mobile source
inventory, beginning in the year 2003, the recurrent burden hours every
3 years will include 40 hours of technical staff time to perform the VMT
calculations.  Thus, the burden for performing all the necessary steps
to generate the 2002 highway mobile source inventory in 2003 is assumed
to be 120 hours (i.e., 40 + 80 hours).

	States must compile a summary report of statewide NOx emissions for
submittal to EPA.  A small burden was estimated for States to account
for sources that have been reporting directly to EPA annually using a
different reporting format (e.g., EDR format for Part 75).  An
additional 3 hours (1 for managerial, 2 for technical staff) was
estimated to be the time needed for a State to request source-submitted
data from EPA and merge these emissions data into a consistent format
for the required triennial report.

		Burden calculations  tc "Burden calculations " \l 4 

	Burden hours and associated costs were estimated for 2008.  Table 6-1
presents the State burden hours and costs by activity for 2008.  Table
6-2 presents the industry burden hours and costs by activity for 2008.
Table 6-3 presents the Agency burden hours and costs by activity for
2008.



Table 6.1. 2008 State Respondent Burden and Cost by Non-Trading Activity

Information Collection Activity

	Mgr. $45.47/

Hour 2008	Tech. $30.27/ Hour 2008	Respondent Hours/Year

2008	Labor Cost/Year

2008	Number of Respondents	Total Labor Hours 2008	Total Cost 2008

Information Collection Activities for §51.122  Triennial Reporting







	Read the reporting requirements of the rule	1	1	2	$76	22	44	$1,666

Submit example ozone season emissions  calculations to EPA [§51.122(g)]
1	10	11	$348	22	242	$7,660

Modify point, area, nonroad mobile, and highway mobile source data bases
to add data fields for additional data items [§51/122(c). (d), (e)]	3
60	63	$1,953	22	1,386	$42,957

Develop procedures by which to estimate area source NOx emissions for
triennial statewide reporting requirements [§51.122(b)(2),(3)]	4	89	93
$2,876	22	2,046	$63,270

Develop procedure for generating county level vehicle miles traveled
(VMT) [§51.122(b)(2),(3)]	2	40	42	$1,302	22	924	$28,638

Project 2007area nonroad mobile, and highway mobile source inventories
to 2008 to satisfy 3-year cycle requirement [§51.122(b)(2),(3)]	1	8	9
$288	22	198	$6,328

Review Title V permit revisions from controlled sources [§51/121(h)(1)]
0	1	1	$30	22	22	$666

Determine ozone season emissions for controlled sources
[§51.122(c)(1).(2)]	1	16	17	$530	22	374	$11,655

Notify the apppropriate EPA Regional Office when submitting annual and
triennial data [§51/122(h)]	1	0	1	$45	22	22	$1,000

Submit electronic NOx budget emissions report [§51.122(b)(1)]

Prepare statewide ozone season inventory for area nonroad mobile, and
highway mobile sources, including a determination of ozone season
emissions for all sources 8[§51.122(b)(2)]	0	1	1	$30	22	22	$666

Prepare statewide ozone season inventory for area nonroad mobile, and
highway mobile sources, including a determination of ozone season
emissions for all sources [§51.122(b)(2)]	8	160	168	$5,207	22	3,696
$114,553

Prepare statewide ozone season inventory for nonroad mobile sources,
including a determination of ozone season emissions for all sources
[§51.122(b)(2)]	12	240	252	$7,810	22	5,544	$171,830

Prepare statewide ozone season inventory for highway mobile sources,
including a determination of ozone season emissions for all sources
[§51.122(b)(2)]	8	120	128	$3,996	22	2,816	$87,916

Compile summary report of statewide ozone season NOx emissions and
account for sources that have been reporting directly to EPA 
[§51.122(b)(2),(h)]	1	2	3	$106	22	66	$2,332

TOTAL





17,402	$541,138





Table 6.2. 2008 Industry Respondent Burden and Cost by Non-Trading
Activity

Information Collection Activity

	Mgr. $83.43/ Hour 2008	Tech. $58.00/ Hour 2008	Respondent Hours/Year

2008	Labor Cost/Year

2008	Number of Respondents	Total Labor Hours 2008	Total Cost 2008

Non-Trading rule units







	  1.  Read the reporting requirements	1	1	2	$142.43	347	694	$49,423

  2.  Revise Title V operating permit	0	1	1	$58	347	347	$20,126

  3.  Perform NOx monitoring activities







	      Cement Plants







	        a.  Annual  testing 	0	160	160	$9280	56	8,960	$519,680

        b.  Prepare and submit reports, monitoring plan update	10	52	62
$3,860.30	56	3,472	$216,177

       IC Engines







	        a.  Annual  testing	0	140	140	$8,120	291	40,740	$2,362,920

        b.  Prepare and submit reports, monitoring plan update	10	52	62
$3,860.30	291	18,042	$1,123,347

TOTAL





72,255	$4,291,673



Table 6.3. 2008 Agency Burden and Cost by Non-Trading Activity

Information Collection Activity

	$54.65/ Hours 2008	Labor Cost/Year

2008	Other Direct Costs 2008	Total Cost 2008

§51.122 activities





  1.  QA and input data	1,126	$61,535.90	$55,000	$116,535.90



Emissions Trading Program

	To estimate 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 NOx Trading Program requires 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 may elect to use a NOx
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 NOx emission rates.  EPA will also allow certain low mass
emissions units to use assumed emissions factors together with
operational data to calculate emissions.

Estimating Labor Costs

	To calculate labor costs, EPA used the following amounts: $84.43 per
hour for managers, $58.00 per hour for technicians and clerical workers.
 As noted above, these rates were derived by using the rates from the
previous ICR and updating them with the Employment Cost Index to January
2006.

	The labor cost to the Agency, $54.65 per hour, was also derived by
updating the rate from the previous ICR.

6.1	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.  Based on number of transfers recorded by EPA in 2005, EPA
could assume that about 6,200 privately submitted allowance transfers
will be made each year, 2007 and 2008.  

	

	Affected units have the option of identifying specific serial numbered
allowances to be deducted by EPA.  Based on past experience, EPA assumes
that approximately one fifth of all affected units will submit an
optional allowance deduction form each year.   EPA estimates that an
average of units will be submit the optional deduction forms each year
during the period covered by this ICR (2007 - 2008).

6.1.1  Estimate of Respondent Burden and Costs for Transfers and
Deductions 

	Exhibit 1 presents the annual burden and costs to participants in
allowance transfers and deductions.  Participants that are not affected
units are required to negotiate an agreement to designate an authorized
account representative and file a new account application; this activity
is required only one time, prior to or simultaneous with the
participant's first transfer of allowances.  All participants are
required to complete and submit allowance transfer information for each
transfer of allowances.  EPA estimates about 10 hours to designate an
authorized account representative and to open a general account, about 2
hours to prepare and submit information for an allowance transfer, and
about 3 hours to prepare and submit an optional allowance deduction.  

Assuming that 55 participants file new general account applications,
6,200 transfers will be made annually, and  500 deduction forms are
submitted the burden to respondents will be about 14,450 hours annually.
  The cost to respondents will be about $1,020,000 annually.



EXHIBIT 1

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	$253.29	165	$13,930.95

     Technical	7	$406.00	385	$22,330.00

Prepare and submit allowance transfer information





     Managerial	1	$84.43	6,200	$523,466.00

     Technical	1	$58.00	6,200	$359,600.00

Allowance deduction form (optional)





     Managerial	1	$84.43	500	$42,215.00

     Technical	2	$116	1,000	$58,000.00

TOTAL

	14,450	$1,019,542.95

a 2006 dollars.

b Assumes 55 participants file new account applications, 6,200 transfers
are made, and 500 optional deduction forms are submitted.

6.1.2  Estimate of Agency Burden and Costs for Transfers

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

Allowance Tracking System

	The allowance system regulations set the general requirements for the
tracking system, which has been developed by EPA. In order to track
allowances, the allowance tracking system must include information on
(1) allowance allocations for each affected facility, (2) allowance
transfers and deductions, and (3) allowance holders.  EPA has made the
information compiled in the allowance tracking system publicly available
in several formats on the internet and is continually working to improve
electronic access.

	

Allowance Transfer System

	EPA estimates that it will require an average of one hour for each
transfer notification submitted on paper.  Upon receipt of an optional
allowance deduction form, in hard copy, EPA will record the data into
the EPA data system.  This is estimated to take about 30 minutes per
form.  

	Assuming 1,000 (out of the 6,200 total) transfers will be made using
paper forms each year and 100 (out of the 500 total) deduction
submissions will be on paper, the annual burden to EPA will be about
1,050 hours. There is no Agency burden when participants use the
electronic on-line transfer system (also used for the optional deduction
submission), since all EPA functions are automated.  Costs for
maintaining the on-line system are included in the O&M costs.  The total
cost to EPA will be about $57,000 annually. Exhibit 2 summarizes the
Agency burden and cost estimates for recording and transferring
allowances.

EXHIBIT 2

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	$54.65	1,000	$54,650.00

Enter deduction data and deduct allowances	0.5	$27.33	50	$2,733.00

TOTAL

	1,050	$57,383.00

a 2006 dollars.

b Assumes 1,000 transfers and 100 optional deduction forms are submitted
annually.



6.2	Annual Compliance Certifications

EXHIBIT 3

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

        Technical	

1

4	

$84.43

$232	

700

2,800	

$59,101.00

$162,400.00

Common stack allowance Deduction formc

         Managerial

          Technical	

0.5

2	

$42.22

$116	

25

50	

$2,111.00

$5,800.00

TOTAL	   

3,575	$229,412.00

a 2006 dollars.

b Assumes 700 reports covering 2,500 affected units are submitted. 

c Assumes 50 optional common stack allowance deduction forms are
submitted.

6.2.1 Respondent Burden and Cost Estimates for Annual Compliance

	Each year between October 1 and November 30, annual compliance
certification must be performed by all affected sources.  Each
authorized representative must submit one annual compliance
certification report that includes a list of all affected units he or
she represents.  In addition to the compliance certification report,
affected units have the option of specifying the proportion of
allowances to be deducted from each unit emitting through a common stack
or pipe. Based on past experience, EPA assumes that approximately 50
sources will submit an optional Common Stack Allowance deduction form
each year.   EPA estimates that an average of 2,500 units represented by
700 different designated representatives will be affected during the
period covered by this ICR (2007 - 2008).  

	Total respondent burden for annual compliance certification by Phase II
affected sources is estimated to total 3,575 hours, for a total cost of
$229,412.  Exhibit 3 presents respondent burden and costs for annual
compliance certification.

6.2.2  Estimate of Agency Burden and Costs for Annual Compliance

 	The three primary tasks performed by the Agency during annual
compliance certification are; reviewing and processing the annual form
submissions, calculating and deducting allowances, and sending out
allowance deduction or reconciliation reports to the source designated
representatives.  Based on the estimated 2,500 affected units, EPA
expects the annual Agency burden to total 1,375 hours, and cost $65,340.
 Exhibit 4 presents the Agency's annual burden and cost for annual
compliance certification.

	EXHIBIT 4

ANNUAL AGENCY BURDEN/COSTS FOR ANNUAL COMPLIANCE CERTIFICATION 

Task	Burden Hours per Occurrence	Cost per Occurrencea	Total Burden Hours
Total Costs

Review and process annual compliance certification submissionsb	1	$54.65
700	$38,255.00

 Calculate and deduct allowancesb	0.5	$27.33	350	$19,131.00

 Send allowance reconciliation reportsb	0.5	$27.33	350	$19,131.00

Total

	1,400	$76,517.00

a 2006 dollars.                               

b Assumes 700 reports covering 2,500 affected units are submitted.

6.3	Obtaining and Issuing Permits

	Because the trading program will end after the 2008 ozone season, for
the purposes of this ICR, EPA assumes that no permit renewals will be
required for these sources. 	

Emissions Monitoring Recording and Reporting

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).

For monitoring, the burdens differ based on the amount and type of
monitoring the unit is  subject to and the particular subtask of
monitoring being conducted.  

	Sources have been monitoring and reporting emissions under this program
since 2003 in most cases.  The burden for those sources that are
required to follow Part 75 requirements under the Acid Rain Program as
well as the NOx Budget Trading Program is already included in the ICR
for the Acid Rain Program.  Therefore, only the estimated 400 units that
are affected only by  the NOx Budget Trading Program are included in the
monitoring and reporting burden for this ICR.

To estimate the burden and/or cost, EPA has relied on the estimates
included in the most recent Acid Rain Program ICR 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 2006 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. 

6.4.1 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 (4 manager
hours and 4 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 MDC
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 anticipates that EPA will
promulgate revisions to Part 75 in late 2007 to accommodate planned
changes in EPA’s data systems that manage the data submitted by
respondents.  These data system changes are necessary to modernize
EPA’s data systems, and over time should streamline reporting.  The
costs of the required upgrade are being analyzed in a separate ICR that
will be issued in conjunction with the Part 75 revisions. For the time
period of this ICR, 2007-2009, 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 2007-2009. 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 2007-2009.
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 2007-2009 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 for the Acid Rain Program. The requirements
include daily, quarterly and annual QA requirements, depending on the
monitoring approach being used. For reporting units that use a full set
of CEMS (SO2, flow, NOx and CO2), the Agency has developed a per unit
labor burden based primarily on information gathered from affected
sources. For units that also are required to install and maintain a
continuous opacity monitoring system (COMS) as a result of Part 75,
additional labor burdens apply. For units that rely on Appendix D
excepted methods for SO2 but use a NOx and CO2 CEMS, reduced labor
burden estimates apply because the quality assurance activities for the
excepted methods are less than for a CEMS. The labor burdens for these
excepted methods were derived primarily from cost estimates provided by
a group of affected utilities (see Docket A-97-35, Item II-D-48). 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. 

6.4.2 Estimating Respondent Costs

Exhibit 7 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.
Annualized capital cost estimates are included for each of the Models
A-F on Exhibit 7. These annualized capital costs are from the Rule to
Reduce Interstate Transport of Fine Particulate Matter and Ozone (Clean
Air Interstate Rule) EPA ICR #2152.02.  The annualized costs ranged from
$28,879 for units with a full set of CEMS (Model A), to $18,750 for a
unit that uses NOx CEMS and Appendix D methods (Model C), to $2,250 for
units that use both Appendix D and Appendix E methods without any CEMS
(Model D). There are no capital/start-up costs for LME units. A
discussion of how the capital/start-up costs were annualized follows in
Section 1.2(iii).

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
#2152.02, 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 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 $ 28,879,
per year, per unit, depending on the type of monitoring methodology. 
Exhibit 1 contains a breakdown of annual costs by 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 #2152.02.

6.4.3 Estimating Agency Burden and Cost

The tasks that will be performed by EPA include processing, reviewing,
and evaluating emissions data reports submitted by utilities, and
conducting appropriate audit activities to verify the information
provided. Assuming that affected sources will submit 3,537 emissions
reports to EPA per quarter, the total annual burden incurred by the
Agency will be 14,148 hours. The total annual cost to EPA for
processing, reviewing, and evaluating these quarterly emissions reports
will be approximately $1,546,376.  Exhibit 6 summarizes the Agency
burden and costs associated with emissions reporting.

6.4.4 Estimating the Respondent Universe and Total Burden and Costs

EPA estimates that: (a) 700 sources will review instructions and
requirements; (b) 840 units (this number excludes sources submitting
under the Acid Rain Program) will reprogram and debug DAHS computer
software; (c) 840 units will submit quarterly reports (only those
sources not already submitting under the Acid Rain Program); and
(d) 840 units will respond to EPA generated error messages (of which
about 10 units will also respond to EPA audit activities), and perform
QA testing and maintenance.  In addition, EPA estimates that
approximately 150 non-Acid Rain units will recertify per year.  Exhibit
5 shows the total burden and total cost based on this respondent
universe.

EXHIBIT 5

ANNUAL RESPONDENT BURDEN/COST ESTIMATES FOR EMISSIONS MONITORING

INFORMATION COLLECTION ACTIVITY	Mgr. $84.43/ Hour	Tech. $58.00/ Hour
Respondent Hrs./Year	Labor Cost/Year	Cont./ O&M Cost	Capital/ Startup
Cost	No. of Respondents	Total Hours/Year	Total Cost/Year

1. Review Instructions and Requirements 	4	4	8	$570	$0	$0	700	5,600
$399,000

2. Respond to EPA Generated Error Messages, Field Audits	6	18	24	$1,551
$0	$0	840	20,160	$1,302,840

3. DAHS Debugging	4	12	16	$1,034	$0	$0	840	13,440	$868,560



4. New Unit Monitoring Plans	10	10	20	$1,424	$0	$0	25	500	$35,600

5. Recertify Monitors	38	12	50	$3,904	$3,400	$0	150	7,500	$1,095,600

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

(a) NOx and Flow CEMS	50	480	530	$32,062	$31,200	$28,879	200	106,000
$18,428,200

(b) NOx CEM and Fuelmeter	20	375	395	$23,439	$17,400	$18,750	410	161,950
$24,431,490

(c) App. E and Fuelmeter	5	30	35	$2,162	$1,800	$2,250	230	8,050
$1,428,760

7. Assure Data Quality, Prepare Reports (inc. monitor plan update),
Submit Reports	20	82	102	$6,445	$0	$0	840	85,680	$5,413,800

TOTAL:	408,880	$53,403,850





EXHIBIT 6 ANNUAL AGENCY BURDEN/COST ESTIMATES FOR EMISSIONS REPORTING

Tasks	Quarterly Burden Hours Per Report	Quarterly Cost Per Reporta
Number of Reportsb	Total Burden Per Year (hours) (2007-2009)	Total Cost

Process, review, and evaluate quarterly report and issue feedback letter
2	$109.30	3,360	6,720	$367,248

a Based on an average total compensation rate of $54.65 per hour 

b Assumes 840 emission data reports each quarter. 



	

6.8	Summary of Burden Hours and Costs

 

	Exhibit 7 summarizes the annual aggregate burden and cost estimates to
respondents for the period of June 1, 2007 through January 30, 2009 for
collections associated with allowance transfers, annual compliance
certifications, emissions reporting, and non-trading activities. 
Exhibit 8 summarizes the aggregate burden and cost estimates to EPA and
for these collections.

6.9	Reasons for Change in Burden

	This ICR renewal reflects a few differences from the previous ICR. 
This section discusses the changes in burden since the last clearance.  

	Overall, the estimated annual burden in 2005 from the last clearance
was 491,739 hours.  This ICR estimates the annual burden in 2008 will be
499,160 hours, which increases the burden by 7,421 hours.  The reasons
for this burden increase are explained below.

  

	All of the change in burden for this collection is due to adjustments. 
Adjustments stem from actions outside the Agency's control.  It includes
changes to the number of responses and the time it takes to respond to a
particular activity.  The adjustments and corresponding change in burden
are as follows.

The annual number of allowance transfer submissions increased from 2,500
to 6,200. This changed the annual burden hours for allowance transfer
activities from 5,014 to14,450.  

Permitting activities and the application for early reduction credits
were estimated to require 4,916 burden hours in 2005.  These activities
are not covered by this ICR, so the burden was reduced to zero. 

An increase in the estimated time required to complete the annual
compliance certification lead to an increase in the burden hours from
2,878 under the previous ICR to 3,575 for this ICR.

Adjustments slightly increased the annual average burden for monitoring
and reporting activities from 408,115 hours in the previous ICR to
approximately 408,880 hours. 

	

6.10 	Burden Statement

	The respondent reporting burden for this collection of information is
estimated to be 426,905 and 499,160 hours respectively for the years
2007 and 2008.  The burden to EPA is estimated to be 9,170 and 10,296
hours respectively for the years 2007 and 2008. The burden to the States
is 17,402 hours in 2008.

	The annual public reporting and recordkeeping burden for this
collection of information is estimated to average 41 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.     

	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 automated collection techniques,
EPA has established a public docket for this ICR under Docket ID Number
EPA-HQ-OAR-2006-0947, which is available for online viewing at
www.regulations.gov, or in person viewing at the Air and Radiation
docket in the EPA Docket Center (EPA/DC), EPA West, Room B102, 1301
Constitution Avenue, NW, Washington, D.C.  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 and Radiation
docket is (202) 566-1742.  An electronic version of the public docket is
available at www.regulations.gov.  This site can be used 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.  When 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, D.C. 20503,
Attention: Desk Officer for EPA.  Please include the EPA Docket ID
Number EPA-HQ-OAR-2006-0947 and OMB Control Number 2060-0445 any
correspondence.

	

	

	

EXHIBIT 7

AGGREGATE ANNUAL RESPONDENT BURDEN AND COST OF COLLECTIONS (2007-2008)

Program	 2007 Total Burden (Hours)	 2008 Total Burden (Hours)	

2007 Total Costsa	 2008 Total Costsa

Allowance transfers and deductions	14,450	14,450	$1,019,542.95
$1,019,542.95

Annual Compliance Certification	3,575	3,575	$229,412.00	$229,412.00

Emissions reporting	408,880	408,880	$53,403,850.00	$53,403,850.00







Non-Trading Rule Units	N/A	72,255	N/A	$4,291,673

TOTAL	426,905	499,160	$54,652,805.95	$58,944,477.95



a	2006 dollars.

EXHIBIT 8

AGGREGATE ANNUAL AGENCY BURDEN AND COST OF COLLECTIONS (2007-2008)

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2007 Total Costsa	 2008 Total Costsa

Allowance transfers and deductions	1,050	1,050	$57,383.00	$57,383.00

Annual Compliance Certification	1,400	1,400	$76,517.00	$76,517.00

Emissions reporting	6,720	6,720	$367,248.00	$367,248.00







Non-Trading Activities	N/A	1,126	N/A	$116,535.90

TOTAL	9,170	10,296	$501,148.00	$617,683.90



a	2006 dollars





Appendix A: NOX Budget Trading Program Forms and Instructions 

  The U.S. Court of Appeals decision of March 3, 2000 vacated the rule
for Wisconsin.

For highway mobile sources, the activity is expressed as VMT by roadway
class.  

Typically, the initial CEMS certification testing, as well as annual
relative accuracy testing, are performed as part of a fixed price
contract.  However, for the purposes of this analysis, the costs to
perform these activities are presented in terms of labor rates applied
to burden hours.

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