1716ss07

SUPPORTING STATEMENT

for

NESHAP for Wood Furniture Manufacturing Operations (40 CFR part 63, subpart JJ)

PART A

1.0 Identification of the Information Collection

(a) Title and Number of the Information Collection.

NESHAP for Wood Furniture Manufacturing Operations (40 CFR part 63, subpart JJ) (Proposed Rule), OMB Control Number 2060-0324, EPA ICR Number 1716.07.

(b) Short Characterization.

This ICR covers information collection requirements in the proposed amendments to the Wood Furniture NESHAP (40 CFR part 63, subpart JJ).

The potential respondents are owners or operators of any existing or new affected source with wood furniture manufacturing operations. There are an estimated 406 facilities subject to the Wood Furniture Manufacturing NESHAP. The affected source is any wood furniture manufacturing facility that is engaged, either in part or in whole, in the manufacture of wood furniture or wood furniture components and that is located at a plant site that is a major source as defined in 40 CFR part 63.2, excluding sources that meet the criteria established in §63.800(a). (b), and (c) of the Wood Furniture Manufacturing NESHAP.

The proposed amendments would prohibit the use of conventional spray guns used in wood furniture coating operations; add a new formaldehyde emission limit of 400 pound per 12-month rolling average; and revise the reporting requirements. These amendments are explained further in the following paragraphs.

The prohibition for conventional spray guns has a compliance date 3 years from the promulgation date which will allow any facility that is still using such equipment to replace it with more efficient spray equipment during those 3 years. Any cost associated with the new equipment will be offset by the increased transfer efficiency and reduced coating cost. The proposed formaldehyde limit of 400 pounds will require any facility with formaldehyde in their wood furniture coatings to calculate their coating usage and associated formaldehyde contents each month. The 12-month rolling average must be documented monthly and reported annually.

The additional reporting requirements pertain only to the calculation and documentation of formaldehyde usage.

The information collection requirements associated with the proposed amendments to the NESHAP are listed in Attachment 1.

2. Need For and Use of the Collection

(a) Need/Authority for the Collection.

Section 112 of the Clean Air Act (CAA) requires EPA to establish NESHAP for both major and area sources of HAP that are listed for regulation under CAA section 112(c). A major source is a stationary source that emits or has the potential to emit more than 10 tons per year (tpy) of any single HAP or more than 25 tpy of any combination of HAP. An area source is a stationary source that is not a major source (i.e., an area source does not emit and does not have the potential to emit more than 10 tpy of any single HAP and more than 25 tpy of any combination of HAP). For major sources, these technology-based standards must reflect the maximum degree of emission reductions of HAP achievable (after considering cost, energy requirements, and non-air quality health and environmental impacts) and are commonly referred to as maximum achievable control technology (MACT) standards. Section 112(d)(6) requires EPA to review these technology-based standards and to revise them “as necessary (taking into account developments in practices, processes, and control technologies)” no less frequently than every 8 years. In addition, section 112(f) of the CAA requires EPA to determine for source categories subject to certain CAA section 112(d) standards whether the emissions limitations provide an ample margin of safety to protect public health. For MACT standards for HAP “classified as a known, probable, or possible human carcinogen" that "do not reduce lifetime excess cancer risks to the individual most exposed to emissions from a source in the category or subcategory to less than 1-in-1 million,” EPA must promulgate residual risk standards for the source category (or subcategory) as necessary to provide an ample margin of safety to protect public health. In doing so, EPA may adopt standards equal to existing MACT standards, if EPA determines that the existing standards are sufficiently protective. EPA must also adopt more stringent standards, if necessary, to prevent an adverse environmental effect, but must consider cost, energy, safety, and other relevant factors in doing so.

Certain records and reports are necessary for the Administrator to confirm the compliance status of sources subject to NESHAP, identify any new or reconstructed sources subject to the standards, and confirm that the standards are being achieved on a continuous basis. These recordkeeping and reporting requirements are specifically authorized by section 114 of the Clean Air Act (42 U.S.C. 7414) and set out in the part 63 NESHAP General Provisions. The recordkeeping and reporting requirements for title V permits are contained in 40 CFR 70.6 and 40 CFR 71.6. Under parts 63 and 70 or 71, the owner or operator must keep each record for 5 years following the date of each occurrence, measurement, maintenance, corrective action, report, or record.

(b) Use/Users of the Data.

The information will be used by the delegated authority (State agency, or Regional Administrator if there is no delegated State agency) to ensure that the standards and other requirements are being achieved. Based on review of the recorded information at the site and the reported information, the delegated permitting authority can identify facilities that may not be in compliance and decide which facilities, records, or processes may need inspection.

3. Nonduplication, Consultations, and Other Collection Criteria

(a) Nonduplication.

A computer search of EPA’s ongoing ICRs revealed no duplication of information-gathering efforts.

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

Public notice is provided in the preamble to the proposed rule. The final rule ICR will address any public comments received.

(c) Consultations.

The proposed amendments were developed in consultation with individual companies, State agencies, and trade associations. The non-EPA persons consulted on the information collection activities are identified in Table 1.

TABLE 1. PERSONS CONSULTED ON THE INFORMATION COLLECTION ACTIVITIES

Contact	Organization	Telephone No.
Dick Titus	Kitchen Cabinets Manufacturers Association	703-264-1690
Bill Perdue	American Home Furnishings Alliance	336-884-5000
Brad Miller	Business and Institutional Furniture Manufacturers Assn	616-285-3963
David Darling	American Coatings Association	202-462-6272

(d) Effects of Less Frequent Collection.

If the relevant information was collected less frequently, the delegated permitting authority (State or EPA) will not be reasonably assured that a facility is in compliance with the standards.

(e) General Guidelines.

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

(f) Confidentiality.

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

(g) Sensitive Questions.

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

4. The Respondents and the Information Requested

(a) Respondents/NAICS Codes.

Potential respondents under subpart JJ are owners or operators of any existing or new facility engaged in wood furniture manufacturing operations. Wood furniture manufacturing facilities are primarily classified under NAICS codes 337110, Wood Kitchen Cabinet and Countertop Manufacturing; 33712, Household and Institutional Furniture Manufacturing; 337211, Wood Office Furniture Manufacturing; and 337212, Custom Architectural Woodwork and Millwork Manufacturing. However, wood furniture manufacturing operations are also co-located at many facilities that are classified under other NAICS codes. Examples include NAICS 337910, Other Furniture Related Products Manufacturing, and 321999, All Other Furniture Related Products Manufacturing.

There are an estimated 150 facilities that would be subject to the proposed amendments to the NESHAP involving the formaldehyde emission limit. No new wood furniture manufacturing sources are expected during the 3­year period of this ICR.

(b) Information Requested.

(i) Data Items, Including Recordkeeping Requirements. Attachment 1, Information Requirements, summarizes the data items, including recordkeeping and reporting requirements, for the Wood Furniture Manufacturing source category.

(ii) Respondent Activities. The respondent activities that will be required by the proposed amendments to the Wood Furniture NESHAP are identified in Table 2 and are introduced in section 6(a).

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

(a) Agency Activities.

The Agency activities associated with the proposed amendments to the Wood Furniture NESHAP are provided in Table 3 and are introduced in section 6(c).

(b) Collection Methodology and Management.

Data and records maintained by the respondents are tabulated and published for use in compliance and enforcement programs of the delegated permitting authority. EPA is the permitting authority until the State agency is delegated authority to implement the final amendments to the rule. Therefore, information contained in any report submitted to the Regional Administrator will be entered into the Air Facility System (AFS), which is operated and maintained by EPA’s Office of Compliance. AFS is EPA’s database for the collection, maintenance, and retrieval of compliance data for approximately 125,000 industrial and government-owned facilities. EPA uses the AFS for tracking air pollution compliance and enforcement by local and state regulatory agencies, EPA regional offices and EPA headquarters. EPA and its delegated authorities can edit, store, retrieve and analyze the data.

(c) Small Entity Flexibility.

The Small Business Administration defines a small entity engaging in wood furniture manufacturing operations as a firm having no more than 500 to 1,000 employees (depending on the size definition for the affected NAICS code). The proposed amendments would not result in any significant adverse impacts on any small entities in the Wood Furniture Manufacturing source category. The proposed amendments would not create any new requirements or burdens for existing sources other than minimal notification requirements, recordkeeping, and reporting requirements.

(d) Collection Schedule.

The specific frequency for each information collection activity within this request is shown in Table 2 for the Wood Furniture Source Category.

6. Estimating the Burden and Cost of the Collection

(a) Estimating Respondent Burden.

The annual burden estimates for the proposed amendments to the Wood Furniture NESHAP are shown in Table 2. These numbers were derived from estimates based on EPA’s experience with other standards. No burden estimates are provided for new sources because no new facilities are expected to become affected sources during the 3­year period of this ICR.

(b) Estimating Respondent Costs.

The information collection activities for the proposed amendments to the Wood Furniture NESHAP are presented in Table 2. Because the data are already collected by respondents as part of normal operations, no respondent development costs are associated with the information collection activities.

(i) Estimating Labor Costs. Labor rates and associated costs are based on Bureau of Labor Statistics (BLS) data. Technical, management, and clerical average hourly rates for private industry workers were taken from the United States Department of Labor, Bureau of Labor Statistics, Occupational Employment and Wages, March 2009 available at http://www.bls.gov/news.release/archives/ecec_06102009.htm. Wages for technical labor are based on "Civilian workers – professional and related," with a total compensation of $46.47/hour. Wages for management labor are taken from "Civilian workers – management, business, and financial," with a total compensation of $54.65/hour. Wages for clerical labor are based on "Civilian workers – office and administrative support," with a total compensation of $22.98/hour. These rates represent salaries plus fringe benefits and do not include the cost of overhead. An overhead rate of 110 percent is used to account for these costs. The fully-burdened hourly wage rates used to represent respondent labor costs are: technical at $97.59 /hour, management at $114.77 /hour, and clerical at $48.26 /hour.

(ii) Estimating Capital and Operations and Maintenance (O&M) Costs. No capital costs or O & M costs are associated with the information collection requirements of the proposed amendments to the Wood Furniture NESHAP. The proposed amendments would not require affected facilities to purchase new monitoring systems or conduct new performance testing.

(iii) Annualizing Capital Costs. No capital costs associated with the information collection requirements of the proposed amendments to the Wood Furniture NESHAP.

(c) Estimating Agency Burden and Cost.

Because the information collection requirements were developed as an incidental part of standards development, no costs can be attributed to the development of the information collection requirements. Because reporting and recordkeeping requirements on the part of the respondents are required under the operating permits rules in 40 CFR part 70 or part 71 and the part 63 NESHAP General Provisions, no operational costs will be incurred by the Federal Government. Publication and distribution of the information are part of the Compliance Data System, with the result that no Federal costs can be directly attributed to the ICR. Examination of records to be maintained by the respondents will occur incidentally as part of the periodic inspection of sources that is part of EPA’s overall compliance and enforcement program, and, therefore, is not attributable to the ICR. The only costs that the Federal government will incur are user costs associated with the analysis of the reported information, as presented in Table 3.

The Agency labor rates are from the Office of Personnel Management (OPM) 2010 General Schedule, which excludes locality rates of pay. These rates can be obtained from Salary Table 2010-GS available on the OPM website, http://www.opm.gov/oca/10tables/pdf/gs_h.pdf. The government employee labor rates are $15.63/hour for clerical (GS-6, Step 3), $28.88 for technical (GS-12, Step 1), and $38.92/hr for management (GS-13, Step 5). These rates were increased by 60 percent to include fringe benefits and overhead. The fully-burdened wage rates used to represent Agency labor costs are: clerical at $25.01/hour; technical at $46.21/hour, and management at $62.27/hour.

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

There are an estimated 406 existing facilities that are subject to the Wood Furniture NESHAP. No new sources are expected during the next 3 years. Consequently, the average number of wood furniture respondents during the 3-year period of this ICR is 135.

For the proposed amendments to the Wood Furniture NESHAP, the components of the total annual burden attributable to this ICR include reading the amendments to the NESHAP; collecting coating usage information and calculating formaldehyde emissions on a 12-month rolling average; and reporting those formaldehyde emissions on an annual basis; all other recordkeeping and reporting activities are already accounted for in the ICR for the NESHAP.

(e) Bottom Line Burden Hours and Cost Tables.

(i) Respondent tally. The bottom line respondent burden hours and costs, presented in Table 2 are calculated by adding person-hours per year down each column for technical, managerial, and clerical staff, and by adding down the cost column. The average annual burden for the recordkeeping and reporting requirements in the proposed amendments to subpart JJ for the 406 existing facilities that are subject to the Wood Furniture NESHAP is 2,001 person-hours, with an annual average cost of $188,188. No capital costs would be expected for the proposed amendments.

(ii) The Agency tally. The average annual Federal Government cost is $5,182 for 115 hours for the proposed amendments to subpart JJ. The bottom line Agency burden hours and costs presented in Table 3 are calculated by adding person-hours per year down each column for technical, managerial, and clerical staff, and by adding down the cost column.

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

(f) Reasons for Change in Burden.

This ICR covers information collection requirements in the proposed amendments to the Wood Furniture NESHAP (40 CFR part 63, subpart JJ).

(g) Burden Statement

The average annual respondent burden for the proposed amendments to the Wood Furniture NESHAP is estimated at 5 hours per facility.

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

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

To comment on the Agency’s need for this information the accuracy of the provided burden estimates, and any suggestions for minimizing respondent burden, including through the use of automated collection techniques, EPA has established a public docket for this ICR under Docket ID No. EPA-HQ-OAR-2010-0786, which is available for online viewing at http://www.regulations.gov, or in person viewing at the Air and Radiation Docket and Information Center in the EPA Docket Center (EPA/DC), EPA West, Room 3334, 1301 Constitution Ave., NW, Washington, DC. The EPA Docket Center Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Reading Room is (202) 566-1744, and the telephone number for the Air Docket is (202) 566-1742. An electronic version of the public docket is available at http://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 17^th Street, NW, Washington, DC 20503, Attention Desk Officer for EPA. Please include the Docket ID Number EPA-HQ-OAR-2010-0786 and OMB Control Number 2060-0324 in any correspondence.

PART B

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

TABLE 2. ANNUAL RESPONDENT BURDEN AND COST--AMENDMENTS TO WOOD FURNITURE MANUFACTURING NESHAP

Burden item	(A) Person-hours per occurrence	(B) No. of occurrences per respondent	(C) Person-hours per respondent (C=A*B)	(D) Respondents per year	(E) Technical person-hours per year (E=C*D)	(F) Management person-hours per year (E*0.05)	(G) Clerical person-hours per year (E*0.1)	(H) Costa, $
1. Applications	N/A
2. Surveys and Studies	N/A
3. Acquisition, Installation, and Utilization of Technology and Systems	N/A
4. Reporting Requirements
A. Read instructionsb	4	1	4	135	540	27	54	$58,403
B. Required activities	N/A
C. Create informationc	2	12	24	50	1,200	60	120	$129,785
D. Gather existing information	N/A
E. Write report
5. Recordkeeping Requirements
A. Read instructions	See 4A
B. Plan activities	N/A
C. Implement activities	N/A
D. Develop record system	N/A
E. Time to enter information	See 4C
F. Time to train personnel	N/A
G. Time to adjust existing ways to comply with previously applicable requirements	N/A
H. Time to transmit or disclose information	N/A
I. Time for audits	N/A
TOTAL LABOR BURDEN AND COST (SALARY)					1,740	87	174	$188,188
TOTAL NUMBER OF ANNUAL RESPONSES	406
ANNUAL CAPITAL COSTSd
TOTAL ANNUALIZED COSTS								$188,188

N/A = not applicable.

^a This ICR uses the following labor rates: $114.77 for managerial labor, $97.59 for technical labor, and $48.26 for clerical labor. These rates are based on the U.S. Department of Labor, Bureau of Labor Statistics, Occupational Employment and Wages, March 2009.

^b There are an estimated 406 existing facilities; no new facilities are expected; the average number expected to read the rule during the 3-yr compliance period is 406/3 = 135.

^c There are an estimated 150 existing facilities using coatings containing formaldehyde; the average number expected to comply with the proposed formaldehyde limit during the 3-yr compliance period is 150/3 = 50.

^d There would be no capital costs associated with the reporting and recordkeeping requirements of the proposed amendments.

3. ANNUAL BURDEN AND COST TO THE AGENCY----AMENDMENTS TO WOOD FURNITURE MANUFACTURING NESHAP

Burden item	(A) Person-hours per occurrence	(B) Occurrences per respondent	(C) EPA person-hours/year (C=A*B)	(D) Facilities per year	(E) Technical person-hours/year (E=C*D)	(F) Management person-hours/year (F=0.05*E)	(G) Clerical person-hours/year (G=0.1*E)	(H) Costa, $
Report Review:
Plant records of annual formaldehyde emissions based on 12-month rolling avgb	2	1	2	50	100	5	10	$5,182
TOTAL BURDEN AND COST								$5,182

^a This ICR uses the following average hourly labor rates: $62.27 for managerial (GS-13, Step 5), $46.21 (GS-12, Step 1) for technical, and $25.01 (GS-6, Step 3) for clerical. These rates are from the Office of Personnel Management (OPM) 2010 General Schedule, which excludes locality rates of pay.

^b Assumes Agency will review all of the annual reports - including the formaldehyde emissions calculated on a 12-month rolling average.

ATTACHMENT 1. INFORMATION REQUIREMENTS----AMENDMENTS TO WOOD FURNITURE MANUFACTURING NESHAP

Requirement	Citation for existing sources	Citation for new sources	General Provisions citation
Formaldehyde limit	§ 63.802(a)(4)	§ 63.802(b)(4)
Prohibit Conventional Spray Guns	§ 63.803(h)	§ 63.803(h)
Monitoring	§ 63.804(h)	§ 63.804(h)	N/A
Notifications	N/A	N/A	N/A
Plans
Operation and Maintenance Plan	N/A	N/A	N/A
Records
Monitoring/inspection information	§ 63.806(b)(4)	§ 63.806(b)(4)	N/A
Reports	§ 63.807(c)(3)	§ 63.807(c)(3)	40 CFR 63.10(e)

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