1230ss33

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Prevention of Significant Deterioration and Non-Attainment New Source Review (Renewal)

OMB: 2060-0003

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SUPPORTING STATEMENT


FOR


PREVENTION OF SIGNIFICANT DETERIORATION

AND NONATTAINMENT NEW SOURCE REVIEW


EPA Tracking No. 1230.33


OMB Control No. 2060-0003



Prepared for:


New Source Review Group

Air Quality Policy Division

Office of Air Quality Planning and Standards

Office of Air and Radiation

United States Environmental Protection Agency

Research Triangle Park, North Carolina 27711



Prepared by:


SC&A, Inc.

1414 Raleigh Road, Suite 450

Chapel Hill, NC 27517



July, 2020








SUPPORTING STATEMENT


FOR


PREVENTION OF SIGNIFICANT DETERIORATION

AND NONATTAINMENT NEW SOURCE REVIEW




TABLE OF CONTENTS


1. IDENTIFICATION OF THE INFORMATION COLLECTION 1

1(a) TITLE OF THE INFORMATION COLLECTION REQUST (ICR) 1

1(b) SHORT CHARACTERIZATION/ABSTRACT 1

2. NEED FOR AND USE OF THE COLLECTION 2

2(a) NEED/AUTHORITY FOR THE COLLECTION 2

2(b) PRACTICAL UTILITY/USERS OF THE DATA 2

3. NONDUPLICATION, CONSULTATIONS, AND OTHER COLLECTION CRITERIA 3

3(a) NONDUPLICATION 3

3(b) PUBLIC NOTICE REQUIRED PRIOR TO ICR SUBMISSION TO OMB 4

3(c) CONSULTATIONS 4

3(d) EFFECTS OF LESS FREQUENT COLLECTION 4

3(e) GENERAL GUIDELINES 4

3(f) CONFIDENTIALITY 5

3(g) SENSITIVE QUESTIONS 6

4. THE RESPONDENTS AND THE INFORMATION REQUESTED 6

4(a) RESPONDENTS/STANDARD INDUSTRIAL CLASSIFICATION (SIC) CODES 6

4(b) INFORMATION REQUESTED 8

4(b)(i) DATA ITEMS, INCLUDING RECORDKEEPING REQUIREMENTS 8

4(b)(ii) RESPONDENT ACTIVITIES 8

5. THE INFORMATION COLLECTED – AGENCY ACTIVITIES, COLLECTION METHODOLOGY AND INFORMATION MANAGEMENT 9

5(a) AGENCY ACTIVITIES 9

5(b) COLLECTION METHODOLOGY AND MANAGEMENT 9

5(c) SMALL ENTITY FLEXIBILITY 10

5(d) COLLECTION SCHEDULE 11

6. ESTIMATING THE BURDEN AND COST OF THE COLLECTION 11

6(a) ESTIMATING RESPONDENT BURDEN 11

6(b) ESTIMATING RESPONDENT COSTS 12

6(b)(i) ESTIMATING LABOR COSTS 12

6(b)(ii) ESTIMATING CAPITAL AND OPERATIONS AND MAINTENANCE COSTS 13

6(b)(iii) CAPITAL/START-UP OPERATING AND MAINTENANCE (O&M) COSTS 14

6(b)(iv) ANNUALIZING CAPITAL COSTS 14

6(c) ESTIMATING AGENCY BURDEN AND COST 14

6(d) ESTIMATING THE RESPONDENT UNIVERSE AND TOTAL BURDEN AND COST 14

6(e) BOTTOM LINE BURDEN HOURS AND COST TABLES 16

6(e)(i) RESPONDENT TALLY 16

6(e)(ii) THE AGENCY TALLY 16

6(e)(iii) VARIATIONS IN THE ANNUAL BOTTOM LINE 16

6(f) REASONS FOR CHANGE IN BURDEN 16

6(g) BURDEN STATEMENT 16

APPENDIX A 22








LIST OF TABLES


Page


4-1 Most Numerous Industrial Respondents by Industrial Group 6


4-2 Most Numerous Industrial Respondents by Industrial Group in Indian Country 7


6-1 Industry Respondent Burden and Cost (Annual) 18


6-2 State and Local reviewing authority Burden and Cost (Annual) 19


6-3 Agency Burden and Cost (Annual) 20


6-4 NSR Program Information Collection Burden Summary 21


1. IDENTIFICATION OF THE INFORMATION COLLECTION


1(a) TITLE OF THE INFORMATION COLLECTION REQUST (ICR)


This report is entitled Prevention of Significant Deterioration and Nonattainment New Source Review, EPA ICR No. 1230.33, OMB Control No. 2060-0003.


1(b) SHORT CHARACTERIZATION/ABSTRACT


The analyses in this document have been performed in support of a renewal of the New Source Review (NSR) Program Information Collection Request (ICR) (Office of Management and Budget (OMB) Control No. 2060-0003; Environmental Protection Agency (EPA) ICR No. 1230.33). The regulations covered under this ICR are contained in parts 49, 51, and 52 of Title 40 of the Code of Federal Regulations (CFR). These requirements govern the state and federal programs for preconstruction review and permitting of major new and modified sources pursuant to part C “Prevention of Significant Deterioration” (PSD) and part D “Program Requirements for Nonattainment Areas” (nonattainment major NSR or NNSR) of Title I of the Clean Air Act (CAA), which together are commonly referred to as “major NSR.” In addition, these requirements govern the state and federal programs for preconstruction of minor new and modified sources pursuant to CAA section 110(a)(2)(C), which is commonly referred to as “minor NSR.” The types of information collection activities addressed in this ICR are those necessary for the preparation and submittal of construction permit applications and the issuance of final permits. Thus, the respondents addressed in this ICR are (1) the pollutant-emitting sources that must apply for and obtain permits, and (2) the state and local reviewing authorities that must review the permit applications and issue the permits. Specific burden-producing activities are listed in Appendix A. The administrative, reporting, and recordkeeping burden for industry respondents (permit applicants), state and local implementing agencies and the EPA are summarized in Table 6-4.


The NSR Program ICR was last renewed in October 2017 (EPA ICR No. 1230.32). The currently approved respondent burden for the NSR program stands at approximately 5.5 million hours per year for nearly 147,000 responses (with associated labor costs of about $425 million), plus about $3.5 million in one-time start-up costs.


This renewal ICR for the NSR program estimates the annual respondent burden at approximately 3.0 million hours (with labor costs of about $234 million) for just over 60,000 responses, plus one-time start-up costs of about $3.4 million. The change (net decrease) in the cost estimate is due largely to a significant reduction in the estimated number of NSR permits issued annually, based on a review of permit activity in recent years.


The estimated annual burden in this renewal ICR consists of approximately 1.4 million hours for industry respondents (with labor costs of about $131 million and start-up costs of about $3.4 million) and 1.6 million hours for state and local reviewing authority respondents (with labor costs of about $103 million). The estimated annual burden for the EPA is about 9,000 hours and $512,000.


2. NEED FOR AND USE OF THE COLLECTION


2(a) NEED/AUTHORITY FOR THE COLLECTION


Section 110 of the CAA requires all states to submit an implementation plan that contains a preconstruction review program for all new or modified stationary sources, including any provisions necessary for this program to meet the specific requirements of parts C and D of title I of the CAA related to major construction. Section 110(a)(2)(C) of the CAA requires that no new or modified stationary source, in conjunction with existing source emissions in the same area, can interfere with the attainment or maintenance of the National Ambient Air Quality Standards (NAAQS). It further requires that no source can construct without securing a permit to ensure that the objectives of parts C and D of title I of the CAA are met.


Part C of title I of the CAA outlines specific construction requirements for new and modified sources constructing in areas that do not violate the NAAQS. These requirements are more commonly referred to as the “prevention of significant deterioration” or “PSD” rules, which require a prospective major new or modified source to: (1) demonstrate that the NAAQS and increments will not be exceeded, (2) ensure the application of best available control technology (BACT), and (3) protect Federal Class I areas from adverse impacts, including adverse impacts on air quality related values (AQRVs).


Similarly, part D of title I of the CAA specifies requirements for major new and modified sources constructing in areas designated as nonattainment for a NAAQS pursuant to section 107 of the CAA. The part D provisions also apply to major source permitting in the Northeast Ozone Transport Region as established under section 184 of the CAA. The part D rules, which are often referred to as the “nonattainment major NSR” or “NNSR” rules, generally require a prospective major construction project to: (1) ensure the application of controls which will achieve the lowest achievable emission rate (LAER), (2) certify that all major sources in a state which are owned or controlled by the same person (or persons) are in compliance with all air emissions regulations, (3) secure reductions in existing source emissions (“offsets”) that comply with specific statutory offset ratios and are otherwise equal to, or greater than, those reductions necessary to show the required progress toward attainment and maintenance of the applicable NAAQS, and (4) conduct an analysis showing that the benefits of the source significantly outweigh its environmental and social costs.


2(b) PRACTICAL UTILITY/USERS OF THE DATA


Before the owner or operator of a facility can commence construction or modification of its source, it must comply with all applicable construction permit requirements. The owner or operator of a stationary source must develop or collect all relevant information not otherwise available to the federal, state, local, or tribal reviewing authority. The reviewing authority reviews the application materials submitted by the owner or operator and either declares the permit application complete for processing or provides the owner or operator guidance on how to correct the deficiencies in the application. If the application has deficiencies, the applicant collects any additional data identified by the reviewing authority so that the permit application can be deemed “complete.” Although sufficient information must be submitted by the applicant before its permit application can be classified as complete, some additional clarifying information might need to be submitted at a later date by the applicant to assist the reviewing authority to finalize the permit.


For major sources to be constructed or modified in attainment areas, the reviewing authority uses the permit application information to determine: (1) whether the source will cause or contribute to a violation of the NAAQS or air quality increments, (2) if the technology the source is proposing is BACT and (3) whether the source's emissions will adversely affect any Federal Class I areas, including AQRVs in these areas. For major sources to be constructed or modified in nonattainment areas, the permit application information is used by the reviewing authority to determine whether: (1) the source will apply LAER, (2) the source will have secured the required emissions offsets, (3) the source has demonstrated that all other of its major sources in the same state are in compliance with all applicable air emissions regulations and (4) the source has demonstrated that its benefits significantly outweigh its environmental and social costs. For minor sources that are large enough to be subject to minor NSR to be constructed or modified in attainment and nonattainment areas, the reviewing authority uses the permit application information to determine whether the source will cause or contribute to a violation of the NAAQS. Minor NSR programs may include a control technology requirement or require ambient air quality modeling to protect the NAAQS.


Once the application is complete, the reviewing authority makes a preliminary determination including a draft permit regarding the approvability of the permit application. For major NSR, this draft permit, along with the application and supporting information, is made available to the public for at least 30 days. The reviewing authority must then respond to public comments and take action on the final permit. Typically, a final major NSR action must be taken on a permit by the reviewing authority within 1 year of receipt of a complete application. For minor NSR, the public comment period and deadline for a final permit action may be shorter.


In addition, the public and other permit applicants may use some of the data collected. The EPA operates a reasonably available control technology (RACT)/BACT/LAER Clearinghouse (RBLC)4 which contains many BACT and LAER determinations to aid applicants and reviewers in identifying reasonable and available control technologies. The Clean Air Act Amendments of 1990 require that the BACT or LAER information in each permit must be gathered by the reviewing authority and submitted for entry into the RBLC database as a reference for making future control technology determinations. Annual reports containing RBLC update information are also available to the public through the National Technical Information Service.


3. NONDUPLICATION, CONSULTATIONS, AND OTHER COLLECTION CRITERIA


3(a) NONDUPLICATION


The information collection activities required under the NSR regulations are not routinely performed elsewhere by the EPA. However, similar information may be collected during the development of certain environmental impact statements (EIS). In such cases, regulations and policies require that information collected for the EIS and NSR programs be coordinated to the maximum extent possible so as to minimize duplicating the collection of data. Some of the required information also may already be available from states or other federal agencies. However, even when these data are available, they are not generally adequate to address completely the relevant NSR requirements.


3(b) PUBLIC NOTICE REQUIRED PRIOR TO ICR SUBMISSION TO OMB


On February 14, 2020, the EPA published a notice in the Federal Register announcing its intention to submit this ICR to OMB. The notice provided a 60-day public comment period, which ended on April 14, 2020. No public comments were received.


3(c) CONSULTATIONS


This ICR is a renewal of the existing ICR for the NSR program. It incorporates the same elements of the program that were included in the last renewal, without change.


Prior to this renewal, the EPA contacted Ms. Leslie Sue Ritts, Counsel for the National Environmental Development Association's Clean Air Project (NEDA/CAP) (http://www.nedacap.org), requesting feedback on the burden for industrial facilities to obtain PSD, NNSR, and minor NSR permits. NEDA/CAP is a multi-sector manufacturing coalition of companies that operate facilities across the United States. No input was received from NEDA/CAP.


In addition, for feedback from state and local agency respondents we contacted Ms. Karen Mongoven of the National Association of Clean Air Agencies (NACAA) (571-970-6678) and Jason Sloan of the Association of Air Pollution Control Agencies (AAPCA) (859-244-8043). No input was received from AAPCA member agencies. Based on information received from seven NACAA member agencies, the EPA revised upward the burden associated with reviewing and issuing PSD and minor NSR permits.


Also for this renewal, information was obtained from the EPA’s 10 Regional Offices on the number of PSD, NNSR, and minor NSR permits issued in the United States in recent years. Based on the information received, the numbers of permits of each type were reduced for this renewal.


3(d) EFFECTS OF LESS FREQUENT COLLECTION


The CAA defines the rate of reporting by sources, states, and local entities. Consequently, less frequent collection is not possible.


3(e) GENERAL GUIDELINES


The OMB's general guidelines for information collections must be adhered to by all federal agencies for approval of any rulemaking's collection methodology. In accordance with the requirements of 5 CFR 1320.5, the EPA believes:


1. The NSR regulations do not require periodic reporting more frequently than semi-annually.

2. The NSR regulations do not require respondents to participate in any statistical survey.

3. Written responses to EPA inquiries are not required to be submitted in less than 30 days.

4. Special consideration has been given in the design of the NSR program to ensure that the requirements are, to the greatest extent possible, the same for federal requirements and those reviewing authorities who already have preconstruction permitting programs in place.

5. Confidential, proprietary, and trade secret information necessary for the completeness of the respondent's permit are protected from disclosure under the requirements of section 503(e) and section 114(c) of the CAA.

6. The NSR regulations do not require more than one original and two copies of the permit application, update, or revision to be submitted to the EPA.

7. Respondents do not receive remuneration for the preparation of reports required by the CAA or 40 CFR part 49, 51, or 52.

8. To the greatest extent possible, the EPA has taken advantage of automated methods of reporting.

9. The EPA believes the impact of NSR regulations on small entities to be insignificant and not disproportionate.


The recordkeeping and reporting requirements contained in the NSR program do not exceed any of the PRA guide­lines con­tained in 5 CFR 1320.5, except for the guideline which limits reten­tion of records by respondents to 3 years. The CAA requires ­both respondents and state or local agencies to retain records for a period of 5 years. The justification for this exception is found in 28 U.S.C. 2462, which specifies 5 years as the general statute of limitations for federal claims in response to violations by regu­lated entities. The decision in U.S. v. Conoco, Inc., No. 83-1916-E (W.D. Okla., January 23, 1984) found that the 5-year general statute of limitations applied to the CAA.


3(f) CONFIDENTIALITY


Confidentiality is not an issue for the NSR program. In accordance with the Clean Air Act Amendments of 1990, the information that is to be submitted by sources as a part of their permit applications and updates, applications for revisions, and is a matter of public record. To the extent that the information required for the completeness of a federal permit is proprietary, confidential, or of a nature that it could impair the ability of the source to maintain its market position, that information is collected and handled subject to the requirements of section 503(e) and section 114(c) of the Act. Information received and identified by owners or opera­tors as confidential business information (CBI) and approved as CBI by EPA, in accordance with title 40, chapter 1, part 2, subpart B—Confidentiality of Business Information (see 40 CFR 2) shall be maintained appropriately. States typically have similar provisions.


3(g) SENSITIVE QUESTIONS


The consideration of sensitive questions (i.e., sexual, religious, personal, or other private matters) is not applicable to the NSR program. The information gathered for purposes of establishing an NSR permit for a source do not include personal data on any owner or operator.


4. THE RESPONDENTS AND THE INFORMATION REQUESTED


4(a) RESPONDENTS/STANDARD INDUSTRIAL CLASSIFICATION (SIC) CODES


Table 4-1 lists the industrial groups the EPA expects will contain the majority of the industrial respondents affected by the NSR program. These categories were chosen because of their relative incidence in seeking major NSR permits based on a search of the RBLC for the years 2017 through 2019.


Table 4-1. Most Numerous Industrial Respondents by Industrial Group

Industry Group

SIC

NAICS

Electrical Services

491

221111, 221112, 221113, 221114, 221115, 221116, 221117, 221118, 221121, 221122

Industrial Organic Chemicals

286

325110, 325120, 325130, 325180, 325193, 325194, 325199, 325998

Sawmills and Planing Mills

242

321113, 321912, 321918, 321920, 321999, 337215

Steel Works, Blast Furnaces, and Rolling and Finishing Mills

331

331110, 331210, 331221, 331222, 332618, 324199

Pulp, Paper, and Paperboard Mills

261, 262, & 263

322110, 322121, 322122, 322130

Petroleum Refining

291

324110

Gas Production and Distribution

492

221210, 486210

Cement, Hydraulic

324

327310


North American Industry Classification System


The respondents also include state and local air regulatory agencies that serve as the reviewing authorities for the NSR program, SIC Code 9511 and NAICS Code 924110. Because of the national scope of the NSR program, these governmental respondents are in all 50 states as well as many U.S. territories. In total, we recognize up to 123 such state and local reviewing authorities, depending on the segment within the overall NSR program.


An exception to the list of affected industries in Table 4-1 applies to the minor NSR program in Indian country. For that program, the industrial groups expected to be most affected are listed in Table 4-2.


Table 4-2. Most Numerous Industrial Respondents by Industrial Group in Indian Country


Industry Group

NAICS

Animal food manufacturing

311119

Asphalt hot mix

324121

Auto body refinishing

811121

Beef cattle complex, slaughter house, and meat-packing plant

3116

Casting foundry (iron)

331511

Chemical preparation

3251

Clay and ceramics operations (kilns)

32711

Concrete batching plant

327320

Crude petroleum and natural gas extraction

211111

Dry cleaning and laundry services

812320

Electric power generation

22111

Fabricated metal products

3329

Fabricated structural metal

3323

Fiber glass operations

3279

Gasoline bulk plant

424710

Gasoline station (storage tanks, refueling)

4471

Grain elevator

424510

Machinery manufacturing

33311

Millwork (wood products manufacturing)

32191

Natural gas-distribution systems

221210

Natural gas liquid extraction (major source)

211112

Oil and gas production/operations (minor Oil & Gas)

21111

Other (natural gas-fired boilers)

72112a

Printing operations

32311

Professional, scientific, and technical services

54171b

Sand and gravel mining

212321

Sand- and shot-blasting operations

238990

Sawmills (minor source)

321113

Sawmills (major source)

321113

Sewage treatment facilities

221320

Softwood veneer and plywood manufacturing

321212

Solid waste landfill

562212

Stone Mining and Quarrying

21231

Surface coating operations

332812

Wood kitchen cabinet manufacturing

337110

a NAICS associated with “other” facilities is that for casino-hotels, which was the most frequently mentioned type of “other” facility.

b This sector included based on natural gas-fired boilers.


4(b) INFORMATION REQUESTED


4(b)(i) DATA ITEMS, INCLUDING RECORDKEEPING REQUIREMENTS


Tables A-1 and A-2 of Appendix A summarize the industry respondent data and information requirements that owners or operators of major sources must include in PSD and NNSR construction permit applications. The tables also include the appropriate references in 40 CFR part 51 for the data and information requirements that govern the way states implement NSR programs. For each reference in part 51, corresponding language will be found in part 52. In this ICR analysis, the minor NSR burden is for owners or operators of minor sources to submit information to demonstrate that they are exempt from the major source construction permit requirements and that they will not cause or contribute to a violation of any NAAQS and that they will meet all requirements of the applicable implementation plan. Because state minor NSR programs vary widely in form and requirements, it is not practical to list specific requirements for these programs other than the general requirements found in 40 CFR 51.160. The specific items required by the minor NSR program for Indian country are listed in Appendix A-3.


Table A-4 of Appendix A summarizes the data and information requirements that state and local reviewing authority respondents must meet for major NSR permits. Table A-4 also shows the part 51 references for the specified data and information requirements. Because of the variability of state minor NSR programs, it is not practical to list specific requirements for these programs other than the general requirements found in 40 CFR 51.160 and 51.161. The EPA is the reviewing authority for the minor NSR program in Indian country. Thus, state and local agencies are not respondents for that program.


4(b)(ii) RESPONDENT ACTIVITIES


Table 6-1 lists the activities, burden, and estimated costs for industry respondents under the NSR program under 40 CFR parts 49, 51, and 52. For the part C and D programs, these activities include three broad categories: Preparation and Planning; Data Collection and Analysis; and Permit Application. Within each of these categories, further subdivision of a source’s activities can be found. The EPA anticipates it will take 127 part C major sources an average of approximately 1,080 hours to complete each PSD application, for a total of 137,160 hours. Each of the 109 part D NNSR sources will require an average of 642 hours, or a total of approximately 69,978 hours each year, to complete part D NNSR applications. Each minor source will require an average of approximately 40 hours to complete its application requirements, for a total of 1,200,000 hours across both state and local minor NSR programs and the minor NSR program in Indian country.


Table 6-2 lists the activities, burden, and estimated costs for state and local reviewing authority respondents under the NSR program. We estimate that it will take these agencies an average of approximately 379 hours to process each of the estimated 127 part C PSD applications, for a total of 48,133 hours annually. For each of the 109 part D NNSR applications, we believe an average of 128 hours will be required, totaling approximately 13,952 hours each year. Each minor NSR application for state and local minor NSR programs will require an average of approximately 50 hours, for an annual total of 1,500,000 hours. State and local agencies do not act as reviewing authorities for minor NSR program in Indian country. In addition, state and local reviewing authority respondents are expected to submit state implementation plan (SIP) revisions to conform their rules to amendments to the major NSR regulations in part 51. We estimate an average of 32 SIP revisions per year, each requiring 40 hours to prepare for a total of 1,280 hours annually.


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


5(a) AGENCY ACTIVITIES


Table 6-3 lists the EPA’s activities associated with NSR permitting. These activities generally involve oversight review of state and local reviewing authorities’ major NSR permitting actions and more complicated minor NSR actions to verify that the requirements of the CAA and the implementing part 51 and 52 regulations are being met. In addition, the EPA will have to review the SIP revisions submitted by the reviewing authorities. Finally, the EPA serves as the reviewing authority for the minor NSR program in Indian country.


5(b) COLLECTION METHODOLOGY AND MANAGEMENT


The owners and operators of new or modified stationary sources affected by the NSR regulations will be responsible for submitting construction permit applications to the reviewing authority. The reviewing authority will log in permit applications, store applications in a central filing location at the reviewing authority’s offices, notify the Federal Land Manager (FLM) and provide a copy of the application (if applicable), and transmit copies of each application to the EPA. Once construction permits have been approved, the reviewing authority will submit control technology information to the EPA's RBLC database. Because the construction permits and associated control technology determinations are performed on a case-by-case basis, the regulations will not contain additional forms that owners or operators would have to fill out and submit to the reviewing authority. States will likely use their current permit application forms for NSR purposes. The NSR program in Indian country is an exception – the EPA has developed application forms for the registrations and permits required under that program.


Qualified personnel who work for the reviewing authority will perform permit reviews and check the quality of data submitted by the applicant on a case-by-case basis. The applicant will be required to submit information on how the data were obtained (e.g., indicate whether emissions data were obtained through the use of emissions factors or test data) and how the calculations were performed. The reviewing authority personnel will check data quality by reviewing test data and checking engineering calculations, and by reviewing control technology determinations for similar sources. The RBLC and other sources will be reviewed for information on control technology determinations made for sources similar to the sources included in the permit application. Confidential information submitted by the applicant will be handled according to the reviewing authority's confidential information handling procedures. The public will be provided the opportunity to review a permit application and other materials relevant to the reviewing authority’s decision on issuing the permit, including FLM findings, by obtaining a copy from the reviewing authority or by attending the public hearing. The NSR regulations will not require information through any type of survey.


5(c) SMALL ENTITY FLEXIBILITY


The Regulatory Flexibility Act (RFA) requires regulatory agencies, upon regulatory action, to assess that action’s potential impact on small entities (businesses, governments, and small non-governmental organizations) and report the results of the assessments in (1) an Initial Regulatory Flexibility Analysis (IRFA), (2) a Final Regulatory Flexibility Analysis (FRFA), and (3) a Certification. For ICR approval, an agency must demonstrate that it "has taken all practicable steps to develop separate and simplified requirements for small businesses and other small entities" (5 CFR 1320.6(h)). In addition, the agencies must assure through various mechanisms that small entities are given an opportunity to participate in the rulemaking process.


A Regulatory Flexibility Act Screening Analysis (RFASA) developed as part of a 1994 draft Regulatory Impact Analysis (RIA) and incorporated into the September 1995 ICR renewal analysis reported an initial regulatory flexibility screening analysis showed that the changes to the NSR program due to the 1990 Clean Air Act Amendments would not have an adverse impact on small entities.2 This analysis encompassed the entire universe of applicable major sources that were likely to also be small-businesses. The Agency estimates there are approximately 50 “small business” major sources.3 Because the administrative burden of the NSR program is the primary source of the NSR program’s regulatory costs, the analysis estimated a negligible “cost to sales” (regulatory cost divided by the business category mean revenue) ratio for this source group. Currently, there is no economic basis for a different conclusion.


The Agency may not, under any circumstances, exempt a major source of air pollution. Since the impacts of NSR regulations which may impact small entities are predominantly to major sources, little room exists for regulatory flexibility to avert the impact of the proposed rulemaking on small entities through exemption.


Even though the NSR program is not anticipated to have an adverse impact on a significant number of small businesses, measures are in place to assist in those incidental exceptions. Implementation of small business stationary source technical and environmental compliance assistance programs, as called for in section 507 of the CAA (at the federal and state levels) can reduce the reporting burden of small entities which are subject to major NSR. These programs may significantly alleviate the economic burden on small sources by establishing: (1) programs to assist small businesses with determining what CAA requirements apply to their sources and when they apply and (2) guidance on alternative control technology and pollution prevention for small businesses. In addition, under the minor NSR program in Indian country, the EPA has developed general permits and permits by rule for some source categories to simplify the permitting process, as well as a Federal Implementation Plan (FIP) to cover true minor sources in the oil and natural gas segment.


5(d) COLLECTION SCHEDULE


Respondents are not subjected to a collection schedule per se under NSR permitting regulations of parts 49, 51, and 52. In general, each affected source is required to submit an application as a prerequisite to receiving a construction permit. Preparation of a construction permit application is a one-time-only activity for each project involving construction of a new source or modification of an existing source. The applicable SIP typically states the time period that is necessary to process a permit application and issue a permit; consequently, a prospective source would be obliged to work backward from the planned commencement of construction to determine the optimum submittal date for the application. The NSR permit regulations will not require periodic reporting or surveys.


6. ESTIMATING THE BURDEN AND COST OF THE COLLECTION


6(a) ESTIMATING RESPONDENT BURDEN


Table 6-1 identifies the average burden by activity for the industrial respondents. The average burden for an industrial respondent remains unchanged since the previous ICR renewal at 1,080 hours per PSD permit application. An estimated 6 percent of the part C PSD permit applications, or eight applicants, will require preconstruction air quality monitoring. The associated direct start-up cost is estimated at $427,474 per source. This value was derived by applying the Bureau of Labor Statistics’ (BLS’) online inflation calculator to the value determined in 2011 dollars for a previous renewal ($366,006).5 The industry respondent burden for each part D NNSR permit also remains unchanged from the last renewal at 642 hours per NNSR permit application.


As in previous ICR renewals, the burden for industry respondents for the minor NSR program in Indian country is combined with the state/local minor NSR program burden. Taken together, the average minor NSR burden for an industry respondent is about 40 hours. This averages the expected burden across all types of minor NSR permits, including new minor sources, new synthetic minor sources, synthetic-based modifications, true minor modifications, netting-based minor modifications, registrations, requests for coverage under a general permit, notifications of coverage under a permit by rule, and minor/administrative permit revisions.


Table 6-2 identifies the average burden by activity for the state and local reviewing authority respondents. Changes were made for this renewal pursuant to consultation with NACAA member agencies to more accurately reflect the burdens of these activities, with the per-permit burden for a PSD permit increased to 379 hours. The burden for a part D permit remains unchanged from the last renewal at 128 hours per permit. For state and local reviewing authority respondents, we estimate 50 hours per permit for minor NSR permits, which is an increase from the previous renewal. Note that the EPA, rather than state and local agencies, acts as the reviewing authority under the minor NSR program in Indian country, so the reviewing authority burden for that program does not fall on state and local reviewing authority respondents.


6(b) ESTIMATING RESPONDENT COSTS

6(b)(i) ESTIMATING LABOR COSTS


In this ICR, nearly the entire burden for all respondents (and the EPA) is treated as a labor cost. The explanation for the absence of capital and operations and maintenance costs appears below in sections 6(b)(ii) and 6(b)(iii). There is only an annual value of the costs of the ICR burden, which is equal to the cost of the first yearly outlay. The same annual ICR burden and cost are reported for each year because the EPA projects that the yearly average number of permit applications will be constant over the term of the ICR.


In order to improve the accuracy of cost estimates, this renewal ICR updates the wage rates to values in 2019 dollars. To derive the labor rate for industry respondents, we obtained the mean hourly wage for Environmental Engineers of $44.54 from a recent BLS Occupational Employment Statistics, which gives wages as of May 2018.6 We escalated the hourly wages to September 2019 using the BLS Employment Cost Index (ECI) for private industry workers, resulting in hourly wages of $46.25.7 The escalation calculation for Environmental Engineers is as follows:




Finally, to determine the total labor rate, we assumed a 100 percent factor to account for benefits and overhead, which we believe to be representative. The resultant rate was rounded to the nearest dollar, yielding $93.00 per hour in 2019 dollars. This labor rate was applied to all industry respondent burden hours to calculate the sources’ labor costs.


Assuming that approximately 6 percent of the industrial respondents submitting part C PSD permit applications will conduct preconstruction ambient air quality monitoring, we estimated that eight applicants will be required to conduct such monitoring. The average cost for this activity is estimated to be $427,474, which is the inflation-adjusted figure based on the value of $366,006 included in the 2012 ICR renewal. As note previously, this inflation adjustment was made using the BLS’ online inflation calculator.


The updated labor rate used for reviewing authority respondents in this ICR renewal was determined similarly to that above for industry respondents. For reviewing authorities, we assumed that permit engineers are all Environmental Engineers, but experience tells us that these positions are typically filled by younger engineers, early in their careers. For this reason, we selected the 25th percentile hourly wage of $32.02 for Environmental Engineers from the same recent BLS Occupational Employment Statistics publication that we used for industry respondents. We escalated this May 2018 hourly wage to Sept 2019 as discussed above using the ECI for state and local government workers, resulting in hourly wages of $33.15.8 As above, we assumed a 100 percent factor to account for benefits and overhead and rounded the resultant rate to the nearest dollar, yielding $66.00 per hour in 2019 dollars.


6(b)(ii) ESTIMATING CAPITAL AND OPERATIONS AND MAINTENANCE COSTS


Even if an applicant is a brand new company and the prospective source is a “greenfield” source (the EPA estimates less than 1 percent of the combined number of major and minor industrial respondents fit that description) most, and perhaps all, of the equipment needed to prepare permit applications (for example, the computers and basic software) will be part of the source’s business operation inventory. Furthermore, much of the data and regulatory and policy information for making technology determinations and even models for performing ambient air impact analyses are available in electronic form from several different EPA web sites for just the communication charges, which are typically absorbed in routine business overhead expenses.


Since the purchase of capital equipment is believed to be an insignificant factor in permit application preparation, the EPA assumes the operation, maintenance, or services for same are negligible. Further, once a permit is issued, there is no operations and maintenance cost associated with it. It remains unaltered unless the source or the reviewing authority discovers specific reasons to reexamine it and change any conditions or specifications. If purely administrative, the changes are handled exclusively by the reviewing authority. If changes have the potential for environmental consequences, the action may be significant enough to be counted as a separate and new application, to which a new burden and cost may be ascribed.


6(b)(iii) CAPITAL/START-UP OPERATING AND MAINTENANCE (O&M) COSTS


Capital/start-up and O&M costs are non-labor related costs. One-time capital/start-up costs are incurred with the purchase of durable goods needed to provide information. According to the PRA, capital/start-up cost should include among other items, preparations for collecting information such as purchasing computers and software, monitoring, sampling, drilling and testing equipment. As a practical matter, these costs are not typical of the costs associated with preparing a major or minor source permit application. For the same reason, the O&M costs associated with start-up capital equipment are zero for most of the sources for this ICR. However, as shown in Table 6-1, 8 of the 127 part C PSD permit applications each year are projected to require preconstruction air quality monitoring, which costs a total $3,419,792. This one-time cost includes pre-application monitoring of air quality via contract services.


6(b)(iv) ANNUALIZING CAPITAL COSTS


Typically, annualized capital cost would be derived from a discounted net present value of the stream of costs that would occur over the life of the permit, or the ICR, whichever is shorter. However, in the case of NSR, there are only labor costs for preparing and processing permit applications. Labor costs are expensed when incurred and not amortized. Therefore, the capital costs for NSR permitting are zero.


6(c) ESTIMATING AGENCY BURDEN AND COST


Staff in the EPA’s Regional Offices typically review major NSR permits and more complicated minor NSR permits issued by state and local reviewing authorities. In addition, Regional Office staff also serve as the reviewing authority for the minor NSR program in Indian country. The EPA expects its review of NSR permits to comprise the tasks listed in Table 6-3. The cost estimate uses a “loaded” labor rate of $56 per hour. The rate reflects the assumption that the staff reviewing permits are classified as Grade 12 Step 5. The corresponding salary is loaded with benefits at the rate of 60 percent.9


6(d) ESTIMATING THE RESPONDENT UNIVERSE AND TOTAL BURDEN AND COST


For the purpose of estimating burden in this ICR, the respondent universe is defined by the annual number of permit applications prepared by major and minor sources, and the annual number of permit applications processed by state and local reviewing authorities. The estimate for part C PSD permits has decreased to 127 permits per year since the last renewal, while the estimate for part D NNSR permits has decreased to 109 permits per year. In both cases, the revised estimates are based on the 3-year average of the number of permits from 2017-2019 as reported by the EPA Regional Offices. The estimate for minor NSR permits has significantly decreased to 30,000 per year based on the annual average reported by the EPA Regional Offices from 2018-2019 (2017-2019 for minor NSR permits in Indian country).

The number of reviewing authorities is unchanged from the previous ICR renewal. For that renewal, a review of the EPA Regional Office websites found that the number of reviewing authorities varies by program as follows: 123 for minor NSR, 118 for NNSR, and 86 for PSD. This analysis also uses the appropriate source count for individual permit-related items (e.g., attending pre-application meetings with the source). The resulting number of responses for this ICR renewal is then estimated to be as follows:


      1. 127 part C PSD permit applications prepared by industry.

      2. 109 part D NNSR permit applications prepared by industry.

      3. 30,000 minor NSR permit applications prepared by industry.

      4. 127 part C (PSD) permit applications processed by state and local reviewing authorities.

      5. 109 part D (NNSR) permit applications processed by state and local reviewing authorities.

      6. 30,000 minor NSR permit applications processed by state and local reviewing authorities.


For each category of permit application, the total number of responses is twice the number of permit applications (i.e., one “response” by the applicant and one by the reviewing authority for each permit). In addition, many reviewing authorities must submit changes to their existing SIP programs or demonstrate that their existing programs are at least equivalent to the EPA’s new requirements. Over the next 3 years, we estimate that 95 SIP revisions will be submitted, covering revisions for purposes of the Project Emissions Accounting Rule, NSR Error Corrections Rule, and the 2015 Ozone Implementation Rule. Rounding upward to be conservative, this comes to an average of 32 per year.


The total annual effort for industry respondents submitting part C PSD permit applications is 137,160 hours, and the corresponding annual cost is $16,175,672. The total annual effort for industry respondents submitting part D NNSR permit applications is 69,978 hours, and the corresponding annual cost is $6,507,954. The total annual effort for industry respondents submitting minor NSR permit applications is 1,200,000 hours, and the corresponding annual cost is $111,600,000. For industry respondents, the overall total annual effort is 1,407,138 hours and $134,283,626.


The total annual effort for state and local reviewing authority respondents processing part C PSD permit applications is 48,133 hours, and the corresponding annual cost is $3,176,778. The total annual effort for state and local respondents processing part D NNSR permit applications is 13,952 hours, and the corresponding annual cost is $920,832. The total annual effort for state and local reviewing authority respondents processing minor NSR permits is 1,500,000 hours, and the corresponding annual cost is $99,000,000. State and local respondents also will spend approximately 1,280 hours for SIP revisions, at an annual cost of $84,480. For the state and local respondents, the overall total annual effort is 1,563,365 hours and $103,182,090.


6(e) BOTTOM LINE BURDEN HOURS AND COST TABLES


6(e)(i) RESPONDENT TALLY


Table 6-4 summarizes the estimated burden and cost to industry respondents, state and local agency respondents, and the EPA for submittal and processing of NSR permit applications and the issuance of the permits. For industry and state and local agency respondents, the overall total annual burden is 2,970,503 hours and $237,465,716.


6(e)(ii) THE AGENCY TALLY


The total annual effort for the EPA for processing part C PSD permit applications is 2,032 hours, and the corresponding annual cost is $113,792. The total annual effort for the EPA for processing part D NNSR permit applications is 1,744 hours, and the corresponding annual cost is $97,664. The total annual effort for the EPA for reviewing complex minor NSR permits in state/local programs and for serving as the reviewing authority for the minor NSR program in Indian country is 5,200 hours, and the corresponding annual cost is $291,200. The total annual effort for the EPA for reviewing SIP revisions is 160 hours, and the corresponding annual cost is $8,960. For the EPA, the overall total annual effort is 9,136 hours and $511,616.


6(e)(iii) VARIATIONS IN THE ANNUAL BOTTOM LINE


The annual burden and cost are not projected to vary significantly over the 3-year period of this ICR. The NSR program overall is now mature. While the actual number of permit actions can be expected to vary from year to year, no systematic variation or trend is expected.


6(f) REASONS FOR CHANGE IN BURDEN


In terms of hours, there is a significant decrease in the total estimated respondent burden compared with the ICR currently approved by OMB because the estimated number of all types permits has decreased since the previous ICR renewal. In terms of dollars, the burden similarly has decreased significantly since the previous renewal due to the decline in the estimated number of permits.


The decrease in annual burden and cost is primarily driven by the very significant decrease in the estimated number of minor NSR permits, from 73,000 per year in previous ICR renewal to the current estimate of 30,000 per year. The larger estimate of minor NSR permits was carried forward in several previous renewals without being reexamined. For this renewal, the number of minor NSR permits was reassessed through consultation with the EPA Regional Offices to arrive at the current estimate. The EPA is confident that this estimate better reflects the actual number of such permits issued annually.


6(g) BURDEN STATEMENT


The average burden on an industrial respondent submitting a part C PSD permit application is 1,080 hours. The average burden on an industrial respondent submitting a part D NNSR permit application is 642 hours. The average burden on an industrial respondent submitting a minor NSR permit application is about 40 hours.


The average burden on a state or local reviewing authority respondent processing a part C PSD permit application is 379 hours. The average burden on a state or local reviewing authority respondent processing a part D NNSR permit application is 128 hours. The average burden on a state or local agency respondent processing a minor NSR permit application is about 50 hours. The average burden on a state or local reviewing authority submitting a SIP revision is 40 hours.


Burden means the total time, effort or financial resources expended by persons to generate, maintain, retain, or disclose or provide information to or for a federal agency. This includes the time needed to review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, verifying, processing, maintaining, 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 the EPA’s regulations are listed in 40 CFR part 9 and 48 CFR Chapter 15.


For those interested in commenting 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, the EPA has established a public docket for this ICR under Docket ID No. EPA-HQ-OAR-2011-0901, which is available for online viewing at www.regulations.gov, or in person viewing at the EPA Docket Center, WJC West, Room 3334, 1301 Constitution Avenue, 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.10 The telephone number for the EPA Docket Center is (202) 566-1744. 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. Once in the system, select “search,” then key in the docket ID number identified above. Also, you can send comments to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, DC 20503, Attention: Desk Office for EPA. Please include the EPA Docket ID No. EPA-HQ-OAR-2011-0901 and OMB control number 2060-0003 in any correspondence.





















APPENDIX A




INFORMATION REQUIREMENTS




TABLE A-1. INDUSTRY RESPONDENT DATA AND

INFORMATION REQUIREMENTS FOR

PREPARING PART C PSD CONSTRUCTION PERMITS

Requirement

Regulation Reference

All information necessary to perform any analysis or make any determination required

40 CFR 51.166(n)(1)

Description of the nature, location, design capacity, and typical operating schedule

40 CFR 51.166(n)(2)(i)

Detailed schedule for construction

40 CFR 51.166(n)(2)(ii)

Description of continuous emission reduction system, emission estimates, and other information needed to determine that BACT is used

40 CFR 51.166(n)(2)(iii)

Air quality impact, meteorological, and topographical data

40 CFR 51.166(n)(3)(i)

Nature and extent of, and air quality impacts of general commercial, residential, industrial, and other growth in area of source

40 CFR 51.166(n)(3)(ii)

Use of air quality models to demonstrate compliance with NAAQS and increment

40 CFR 51.166(k) & (l)

Air quality monitoring data

40 CFR 51.166(m)

Impairment of visibility, soils, and vegetation

40 CFR 51.166(o)(1)

Air quality impact resulting from general commercial, residential, industrial, and other growth associated with source

40 CFR 51.166(o)(2)

Written notice of proposed relocation from portable source

40 CFR 51.166(i)(1)(iii)(d)

Description of the location, design construction, and operation of building, structure, facility, or installation

40 CFR 51.160(c)(2)

Description of the nature and amounts of emissions to be emitted

40 CFR 51.160(c)(1)

Description of the air quality data and dispersion or other air quality modeling used

40 CFR 51.160(f)

Sufficient information to ensure attainment and maintenance of NAAQS

40 CFR 51.160(c)-(e), 40 CFR 51.161-163




TABLE A-2. INDUSTRY RESPONDENT DATA AND

INFORMATION REQUIREMENTS FOR

PREPARING PART D NNSR CONSTRUCTION PERMITS

Requirements

Regulation Reference

Documentation that LAER is being applied

40 CFR 51.165(a)(2);

40 CFR part 51, Appendix S, section IV.A;

40 CFR 52.24(k)


Documentation that all sources owned or operated by same person are in compliance


40 CFR 51.165(a)(2);

40 CFR part 51, Appendix S, section IV.A;

40 CFR 52.24(k)


Documentation that sufficient emissions reductions are occurring to comply with specific offset requirements and to ensure RFP


40 CFR 51.165(a)(3);

40 CFR part 51, Appendix S, section IV.A;

40 CFR 52.24(k)


Documentation that benefits of proposed source significantly outweigh the environmental and social costs imposed as a result of its location, construction, or modification


40 CFR 51.165(a)(2)


Description of the location, design construction, and operation of building, structure, facility, or installation


40 CFR 51.160(c)(2)


Description of the nature and amounts of emissions to be emitted


40 CFR 51.160(c)(1)


Description of the air quality data and dispersion or other air quality modeling used


40 CFR 51.160(f)


Sufficient information to ensure attainment and maintenance of NAAQS


40 CFR 51.160(c)-(e)

40 CFR 51.161

40 CFR 51.162

40 CFR 51.163



TABLE A-3. INDUSTRY RESPONDENT DATA AND

INFORMATION REQUIREMENTS FOR

PREPARING TRIBAL MINOR NSR PERMIT ACTIONS



Requirement

Regulation Reference

Application for a source-specific permit including information on source operations, emissions units, control techniques, existing emission limitations and stack characteristics

40 CFR 49.154(a)(2)(i)-(x)


Request for coverage under a General Permit


40 CFR 49.156(e)(1)


Documentation demonstrating completion of the screening processes specified for consideration of threatened and endangered species and historic properties


40 CFR 49.156(f)(6)(iii)

40 CFR 49.104


Notification of coverage under a Permit by Rule


40 CFR 49.156(f)(6)(iv)

40 CFR 49.162(d)(1)(i)

40 CFR 49.163(d)(1)(i)

40 CFR 49.164(d)(1)(i)


Application for a new or modified synthetic minor source


40 CFR 49.158(a)


Application for an administrative permit revision


40 CFR 49.159(f)


Registration of sources including information on source operations, emissions units, control techniques and existing emission limitations


40 CFR 49.160(c)(1)(iv)

40 CFR 49.160(c)(2)


Notification of relocation, change in ownership or closure


40 CFR 49.160(d)

40 CFR 49.162(d)(5)(i)-(iii)

40 CFR 49.163(d)(5)(i)-(iii)

40 CFR 49.164(d)(5)(i)-(iii)






TABLE A-4. PERMITTING AGENCY DATA

AND INFORMATION REQUIREMENTS



Requirement

Regulation Reference

Early FLM notification and opportunity to participate in meetings

40 CFR 51.166(p)(1)(ii)

Submission of all permit applications to EPA

40 CFR 51.166(q)(1)

Submission of notice of application, preliminary determination, degree of increment consumption, and opportunity for public comment

40 CFR 51.166(q)(2)(iv)

Submission to FLM of permit applications

40 CFR 51.166(p)(1)

Submission of written request to exempt sources from review

40 CFR 52.21(i)(4)(vi)

Written request for use of innovative control technology

40 CFR 51.166(s)

Establishing and operating a permitting program for all new sources

40 CFR 51.160

Provide notice to EPA of all permits

40 CFR 51.161(d)

Provide for public comment for all NSR permits

40 CFR 51.161



4 The RBLC is available on the EPA web site at https://cfpub.epa.gov/RBLC/.

22 “Economic Assessment of the Impacts of Part C and D Regulatory Changes,” June 2, 1994.

33 The definition for “small business” employed for all SIC categories in this analysis was any business employing fewer than 500 employees.

5 https://data.bls.gov/cgi-bin/cpicalc.pl?cost1=366006&year1=201101&year2=201911, accessed in December 2019. This online calculator provides the inflation in the Consumer Price Index between any two years. In this case, we entered the amount in 2011 dollars ($366,006) and retrieved the inflated value in 2019 dollars ($427,474).

6 Environmental Engineer hourly wages obtained from “Occupational Employment Statistics, Occupational Employment and Wages, May 2018, 17-2081 Environmental Engineers,” U.S. Dept. of Labor, BLS. (http://www.bls.gov/oes/current/oes172081.htm accessed December 2019).

7 Employment Cost Index for sources obtained from “Employment Cost Index Historical Listing, Table 2. Employment Cost Index for wages and salaries, by occupational group and industry (Seasonally adjusted),” U.S. Dept. of Labor, BLS, pg. 32 Private Industry Workers - All Workers. (http://www.bls.gov/web/eci/echistrynaics.pdf accessed December 2019).

8 Employment Cost Index for reviewing authorities obtained from “Employment Cost Index Historical Listing, Table 2. Employment Cost Index for wages and salaries, by occupational group and industry (Seasonally adjusted),” U.S. Dept. of Labor, BLS, pg. 48 State and Local Government Workers - Public Administration. (http://www.bls.gov/web/eci/echistrynaics.pdf accessed December 2019).

9 Federal Labor Cost obtained from U.S. Office of Personnel Management 2019 General Schedule Table 2019-GS. Hourly labor rate assumed is GS-12, Step 5 (Technical Labor).

10 Note: As this document is being written, out of an abundance of caution for members of the public and staff, the EPA Docket Center and Reading Room is closed to public visitors to reduce the risk of transmitting COVID-19. The Docket Center staff will continue to provide remote customer service via email, phone, and webform. For further information on EPA Docket Center services and the current status, please visit online at www.epa.gov/dockets.


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File TitleINFORMATION COLLECTION REQUEST
AuthorCarrie Wheeler
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