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  |Melanie King/RTP/USEPA/US                                                                                                                 
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  |"Higgins, Cortney" <Cortney_Higgins@omb.eop.gov>                                                                                          
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  |02/16/2010 09:56 AM                                                                                                                       
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  |RE: Clarifying questions on RICE                                                                                                          
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(See attached file: Existing CI RICE NESHAP Supporting Statement Final Rule 1-
14-2010.doc)

Melanie King
Energy Strategies Group
Sector Policies and Programs Division
Office of Air Quality Planning and Standards U.S. Environmental Protection 
Agency

Mail Code D243-01
RTP, NC  27711

Phone:  (919) 541-2469
Fax:       (919) 541-5450
king.melanie@epa.gov


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  |"Higgins, Cortney" <Cortney_Higgins@omb.eop.gov>                                                                                          
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  |Melanie King/RTP/USEPA/US@EPA                                                                                                             
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  |02/16/2010 09:25 AM                                                                                                                       
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  |RE: Clarifying questions on RICE                                                                                                          
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Hi Melanie,
Can you send the ICR supporting statement?  I think it would be helpful to see 
how the reporting and recordkeeping estimates were derived and how they are 
averaged.

Thanks,
Cortney

From: King.Melanie@epamail.epa.gov [mailto:King.Melanie@epamail.epa.gov]

Sent: Sunday, February 14, 2010 9:47 PM
To: Higgins, Cortney
Cc: Wayland.Robertj@epamail.epa.gov; Tsirigotis.Peter@epamail.epa.gov; 
horowitz.michael@epamail.epa.gov
Subject: Re: Clarifying questions on RICE

Hi Cortney,
Regarding the spreadsheet you sent – typically when we are evaluating MACT or 
GACT for a control technology, we do not include costs for recordkeeping and 
reporting in the analysis.  We would only look at the annual cost associated 
with the control device, including the operation and maintenance cost and the 
annualized capital cost.  So we would not do our analysis the same as the way 
you’ve done it in your attached spreadsheet.

On the reporting costs, one thing to keep in mind is that 80 percent of those 
costs are initial costs for reading instructions, training personnel, and the 
initial testing and compliance notifications.  So those are one-time costs 
that would only be incurred in the first year.
We have tried to minimize the burden of the reporting costs as much as 
possible, however we do need some reporting so that we can ensure sources are 
complying with the rule, and we feel that semiannual compliance reports are 
appropriate and not overly burdensome.  Note that we do not require reporting 
for emergency engines and for engines <100 HP at major sources and <300 HP at 
area sources.

Melanie King
Energy Strategies Group
Sector Policies and Programs Division
Office of Air Quality Planning and Standards U.S. Environmental Protection 
Agency

Mail Code D243-01
RTP, NC  27711

Phone:  (919) 541-2469
Fax:       (919) 541-5450
king.melanie@epa.gov

-----"Higgins, Cortney" <Cortney_Higgins@omb.eop.gov> wrote: -----
To: Melanie King/RTP/USEPA/US@EPA
From: "Higgins, Cortney" <Cortney_Higgins@omb.eop.gov>
Date: 02/12/2010 06:31PM
cc: RobertJ Wayland/RTP/USEPA/US@EPA
Subject: Clarifying questions on RICE


Hi Melanie,





Attached you'll find a spreadsheet of the costs and benefits for area source 
engines between 300 and 500 HP.  The attached analysis shows that requiring 
controls for these engines, if they run less than ~100 hrs per year, is not 
cost-beneficial (costs of controls exceed the PM2.5 benefits).  Do you know 
how many engines in this group run less than 100 hours per year and are not 
emergency engines?





Additionally, for these sized engines running 100 hours, the estimate of 
reporting costs is 1/3 of the total annual costs.  Given that these engines 
will have control devices installed, and emissions reductions will be 
achieved, is there any flexibility to ease the reporting requirements?  
Furthermore, is there any flexibility in lessening in the reporting 
requirements for the area source engines subject to emissions limits (and thus 
technology controls)?








Thanks,


Cortney








[attachment "Engine_hours_CBA_OMB.xls" removed by Melanie King/RTP/USEPA/US]

