INFORMATION COLLECTION REQUEST RENEWAL FOR THE ACID RAIN PROGRAM UNDER THE CLEAN AIR ACT AMENDMENTS TITLE IV April 4, 2006 1 INFORMATION COLLECTION REQUEST RENEWAL FOR THE ACID RAIN PROGRAM UNDER THE CLEAN AIR ACT AMENDMENTS TITLE IV ( JULY 2006 THROUGH JUNE 2009)

SUPPORTING STATEMENT 1. IDENTIFICATION OF THE INFORMATION COLLECTION 1.1 Background Title IV of the Clean Air Act Amendments of 1990 ( the acid rain title) established goals to reduce annual emissions of sulfur dioxide ( SO2) and nitrogen oxides ( NOX) and placed a national cap on sulfur dioxide emissions beginning in the year 2000. Emissions reductions were mandated in two phases:

° During Phase I, which covered 1995 through 1999, emissions were reduced about 50 percent for SO2 and 32 percent for NOX from 1990 levels from the 263 highest emitting sources;

° Phase II, which began in 2000 for both SO2 and NOX, affects more than 3,500 sources at virtually all fossil fuel power plants.

To help meet emissions reduction goals, Title IV provides for a program that allocates emissions allowances to affected utility units based on a national target for SO2 reductions, and allows market forces to achieve the targeted reductions in the most cost effective manner. Under this program, each affected unit receives its allocation of allowances for every year. An affected unit must hold one allowance for each ton of SO2 it emits. Affected utilities and individuals may buy and sell allowances, or save them for future use or sale.

The ability to buy and sell ( or transfer) allowances provides substantial economic benefits, by encouraging the greatest emissions reductions where costs of reductions are lowest. This concept of allowance transfers cannot be implemented, however, unless regulations governing emissions monitoring and permitting of acid rain sources are in place as well. To ensure compliance with the emissions reduction requirements and to provide the national consistency needed to foster the allowance market, sections 408 and 412 of Title IV require the designated representative of the owners and operators of each affected acid rain source 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.

Emissions monitoring and reporting is the foundation upon which the allowance trading system is based. 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. 2 Acid rain permits allow sources the flexibility to comply with the emissions reduction requirements of Title IV for both SO2 and NOX. The procedures specified in the acid rain permits regulations, including the use of standardized forms, ensure that the intended flexibility and accountability is preserved as the Acid Rain Program is implemented nationwide by different permitting authorities.

Participation in the annual auction is voluntary. Information is collected by EPA's Clean Air Markets Division and used to conduct and facilitate the administration of the auction. Auction participants must submit a bid form and payment method.

Section 410 of Title IV provides that sources of SO2 emissions that are not regulated, i. e., small utility units and industrial boilers, may elect to " opt in" to the allowance allocation and trading program. To opt in, the source owner or operator must submit an opt in permit application to EPA. Sources that opt in ( 1) become affected sources, ( 2) receive an annual allocation of allowances, and ( 3) may sell any allowances they do not use for their own emissions. Because opting in is voluntary, only those unaffected sources that would profit by opting in are expected to do so.

Although the principal purpose of Title IV of the Clean Air Act is to reduce acid rain by requiring reductions in emissions of SO2 and NOX, it is also the purpose of this title to encourage energy conservation and pollution prevention as a long range strategy for reducing air pollution and other adverse effects of energy production and use. As an incentive for electric utilities to ( 1) implement energy conservation measures and ( 2) use renewable energy, section 404( f) of Title IV establishes provisions for qualifying electric utilities to receive allowances from the Conservation and Renewable Energy Reserve for SO2 emissions avoided through either of these two options.

The NOX emission reductions are achieved through maximum allowable emission rates for coal fired utility boilers. The allowable rate for a given boiler depends on the type of boiler. The NOX regulations for coal fired boilers are applied to two groups of boilers, as specified by the Clean Air Act Amendments of 1990 ( CAAA). Boilers in each group become affected at different times, as described below. Group 1 boilers are ( 1) dry bottom wall fired boilers that do not apply cell burner technology or ( 2) tangentially fired boilers. Group 2 boilers are all other types of utility boilers, including ( 1) wet bottom wall fired boilers, ( 2) cyclones, and ( 3) boilers applying cell burner technology. In Phase II, which began January 1, 2000, NOX emission limitations became effective for both groups of boilers.

1.2 Information to Be Collected EPA has developed regulations to implement the emissions reduction provisions of Title IV of the Clean Air Act Amendments that cover ° Allowance tracking and transfers ( section 403); ° Energy conservation and renewable energy incentives ( section 404); 3 ° Permits ( section 408); ° Emissions monitoring ( section 412); ° Auctions ( section 416); ° Opt in ( section 410 a g); and ° NOX permitting ( section 407).

This Information Collection Request ( ICR) addresses the paperwork burden related to ( 1) transferring and tracking allowances; ( 2) obtaining and distributing allowances from the Conservation and Renewable Energy Reserve; ( 3) obtaining and issuing permits ( e. g., submitting permit applications); ( 4) submitting and certifying emissions monitoring data; ( 5) the opt in program; ( 6) NOX permitting. Burden estimates provided in this ICR are for the period from July 1, 2006 to June 30, 2009 ( i. e., the years 2007 through 2009).

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 Conservation and Renewable Energy Reserve To receive allowances for emissions avoided through the use of energy conservation measures or renewable energy, utilities must submit an application to receive allowances that ( 1) designates and verifies the measures used to avoid emissions, ( 2) calculates the tons of emissions avoided, and ( 3) demonstrates qualification to receive allowances from the Conservation and Renewable Energy Reserve.

Permits Permit applicants are required to submit an acid rain permit application for each affected source. The permit application must include, for each unit at the source, ( 1) general information on the unit, ( 2) a complete compliance plan for each unit, and ( 3) the Acid Rain Program standard requirements.

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. 4 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.

Opt in Program This ICR also addresses the paperwork burden for small utility units and industrial boilers that opt in. The Agency has identified five burden areas associated with a source's opting in to the allowance allocation and trading program. These areas are ( 1) completing the permit application, ( 2) recording and reporting emissions data, ( 3) compliance reporting, and ( 4) withdrawing from the program. Estimates for the opt in program detail the burden for both operating and shut down opt ins.

The Opt in program requires respondents to submit an acid rain permit application. For all respondents, the application must provide ( 1) general information about the source, ( 2) specific data about the source's fuel consumption and operating data for 1985, 1986, 1987, and ( 3) data on the source's actual and allowable emission rates for 1985, as well as the current allowable emission rate. The permit application and proposed thermal energy compliance plan for sources that opt in and shut down must include information describing the source's plans for the replacement of thermal energy.

To meet emissions monitoring, record keeping and reporting requirements, sources that 5 opt in and continue operating will be required to ( 1) submit a monitoring plan and certification of monitors, ( 2) record hourly pollutant and flow monitor data, and ( 3) submit quarterly reports of their emissions data to EPA. Sources that opt in and shut down will not have to perform tasks associated with emissions monitoring, reporting, and recording.

Meanwhile, to meet requirements for reporting compliance, respondents must submit an annual compliance report in which they ( 1) report their utilization information, ( 2) report any replacement of thermal energy, and ( 3) report on allowances transferred as a result of the replacement of thermal energy. Finally, all sources that have opted in and later decide to withdraw are required to complete withdrawl notification.

NOX Permitting An owner or operator of a unit subject to a NOX emission limitation may meet the requirements through one of three compliance options:

° meeting the standard limit ° obtaining approval for an emissions averaging plan ° obtaining an alternative emissions limitation ( AEL)

Two or more units may average their NOX emissions, as provided for by Title IV. In an approved NOX emissions averaging group, the NOX emission rates of some of the individual units may exceed their respective emission limitations, as long as the Btu weighted average NOX emission rate for the entire group is less than or equal to the weighted average of the emission limitations for the individual units. The ability to average emissions allows utilities to meet the NOX requirements at lower cost.

Title IV also provides that an owner or operator of an affected unit may petition EPA for a higher, alternative emission limitation ( AEL) if the unit cannot meet the emission limitations even after a retrofit with low NOX burner technology . The opportunity to obtain AELs will allow for adjustment of emission limitations for specific units where the technologies on which the limitations were based do not provide the expected level of emission reductions in practice.

Meeting the standard limit is the least burdensome administratively for sources. All owners and operators of affected units are eligible to comply with the NOX regulations using this option. The submission of an application for emissions averaging, or an AEL, is optional and voluntary. For units that comply by meeting the standard limits applicants are required only to identify the unit.

Applicants seeking approval for emissions averaging are required to identify the units in the group, assign alternative contemporaneous emissions limitations to each unit, and demonstrate that the Btu weighted average of these alternative limits is less than or equal to the Btu weighted average of the limits that would apply in the absence of averaging.

All applicants for AELs are required to demonstrate that they are eligible for an AEL, by 6 providing ( 1) evidence that the appropriate emissions control equipment has been installed, and ( 2) monitoring data showing that the unit cannot meet the applicable emission rate.

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 2003 each year for the years 2007 through 2009.

1.3 Terms of Clearance Below are the Terms of Clearance for the previous ICR renewal.

This ICR is approved for three years. The agency should continue to ensure that future extensions of the ICR appropriately represent capital costs that have been capitalized over more than three years. Also, the agency should continue to include in future extensions of the ICR any cyclical reporting such as NOx compliance plans.

A discussion of the capital cost issue can be found in section 6.4.2 of this document, and the cyclical nature of reporting is taken into account for both Permitting, sections 4.2.2 and 6.3.1, and NOx Compliance, sections 4.2.2 and 6.7.1.

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.

2.1 Need/ Authority for the Collection Section 403( b) of Title IV of the Clean Air Act Amendments of 1990 provides for the transfer of allowances among designated representatives of owners and operators of affected sources and any person who holds allowances. Transfers of allowances are not deemed effective until written certification of the transfer, signed by a responsible official of each party to the transfer, is received and recorded by EPA. Section 403( d) of Title IV requires that EPA develop a system for issuing, recording, and tracking allowances ( intended to help ensure an orderly and competitive allowance system).

Conservation and Renewable Energy Reserve Section 404( f) of Title IV establishes provisions for qualifying electric utilities to receive allowances from the Conservation and Renewable Energy Reserve for SO2 emissions avoided through the use of qualifying energy conservation measures or renewable energy. The allowances are allocated on a first come, first served basis during the period from January 1, 1992 to December 31, 2009.

Permits 7 Section 408 of Title IV and Title V of the Clean Air Act Amendments of 1990 require that the designated representative of the owners and operators of each affected source under the Acid Rain Program obtain a permit. In Phase II, section 408 also specifies that the permitting authority, usually a State or local agency, issue the permits with a term of five years.

Emissions Monitoring Section 412( a) of Title IV requires the use of CEM systems ( or alternative monitoring systems demonstrated to be equivalent) at each affected unit's source of emissions. Section 504( a) of Title V requires that the results of any required monitoring be submitted to the permitting authority no less often than every six months. The information collection is consistent with satisfying these minimum statutory requirements. Note that reports are submitted quarterly rather than semiannually. The Acid Rain Advisory Committee recommended that EPA collect emissions data on a quarterly basis and this schedule has proven to allow for effective implementation of the program.

Auctions Although participation in the annual auction is voluntary, the information to be collected is necessary to operate and administer the program and is required specifically under Title IV, Section 416( d)( 2).

Opt in Section 410( a) of Title IV of the Clean Air Act Amendments of 1990 allows the owner or operator of any SO2 source that is not an affected unit under section 403( e), 404, or 405 to elect to designate that source as an affected source and receive allowances under Title IV. Section 410( a) requires sources opting in to submit a permit application and a compliance plan to the Administrator.

Section 410( b) requires the Administrator to establish a baseline utilization rate for SO2 emissions for opt in sources based on fuel consumption and operating data for calendar years 1985, 1986, 1987. Section 410( c) requires the Administrator to establish a limit for SO2 emissions based on the baseline utilization rate and the lesser of the source's actual or allowable 1985 emissions.

Section 410( e) requires that the Administrator issue allowances to sources that become affected sources under Section 410. The number of allowances is to be based on calculations made under Section 410( c).

NOX Permitting Section 408 of Title IV of the Clean Air Act Amendments of 1990 specifies that utility owners and operators of units affected under Title IV must submit permit applications and compliance plans ( including NOX compliance plans), and that EPA must issue permits. ° Section 408 provides general authority for the information collections under this ICR related to compliance options. In addition,

° Section 407( e) of Title IV allows the owner or operator of two or more affected units to petition the permitting authority for a NOX averaging plan.

° Section 407( d) provides for AELs for utility units that cannot meet the applicable limitation using low NOX burner technology or the technology on which the limitation was based. Section 407( d) specifies that an owner or operator requesting an AEL must show the permitting authority that ( 1) appropriate control equipment has been properly installed, and ( 2) the equipment has been properly operated for a period of fifteen months ( or another period of time as established by regulation) and operating and monitoring data for such period demonstrate that the unit cannot meet the applicable emission rate. The owner or operator must also specify an emission rate that the unit can meet on an annual average basis.

2.2 Practical Utility/ Users of the Data Allowance Transfers Information collected on allowance transfers is used by EPA to track allowances for the purpose of determining compliance with the Acid Rain Program. Information on allowance transfers is also used by participants in the allowance market and the public to evaluate the activities of utilities, and by EPA for program evaluation.

Auctions EPA or its designated agent uses the information collected for the allowance auction to conduct and facilitate administration of auctions. The basic information requested requires little evaluation. Bids submitted for auctions are ranked to select winning bidders and to conduct transfers of emission allowances. The auction information results are also used by participants in the allowance market.

Conservation and Renewable Energy Reserve Information collected on the use of energy conservation measures and renewable energy is used by EPA to issue allowances from the Conservation and Renewable Energy Reserve.

Permits Acid rain permit applications are used by EPA and permitting authorities to issue operating permits. A permit application is 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 or the permitting authority. Affected sources may rely on the permit for information on the requirements with which they must comply. Because permit applications and permits are public documents, they may be used by the public to examine activities undertaken by affected sources.

Emissions Monitoring 9 Data from emissions monitoring is indispensable to successful implementation of the Acid Rain Program for two reasons:

° Title IV of the Act clearly states that its primary purpose is to reduce the adverse effects of acid deposition by reducing annual emissions of sulfur dioxide and nitrogen oxides. For sulfur dioxide emissions, the statutory objective is achieved through an emissions trading program. For nitrogen oxide emissions, the statutory objective is achieved through annual emission limitations on certain units.

° EPA can only enforce the sulfur dioxide trading program and the nitrogen oxide emission limitation program by having accurate emissions data for each affected unit.

Electric utilities, energy consultants, and power marketing companies can use the Acid Rain program emissions data to project future SO2 allowance costs and availability. Academic institutions can perform data modeling to evaluate environmental benefits and estimate health effects of SO2 reductions. EPA and other agencies use it to try to correlate the reduction of SO2 and NOX emissions with a decrease in acid precipitation, and also to measure the impacts of other existing and proposed emissions trading programs.

Together, the allowance trading system, operating permits, and emissions data provide the accountability to allow the Acid Rain Program to function without more stringent command and control approaches.

Opt in Information collected on opt in respondents is used by EPA to record which sources are to be designated affected sources, and hence are to be bound by the regulations of the CAAA that are relevant to affected sources.

Opt in permit applications are used by EPA to issue operating permits. Fuel usage and emissions rate data in the opt in application is used to allocate allowances to the opt in source.

The information on annual utilization and the replacement of thermal energy, if covered by a Thermal Energy Plan, contained in the annual compliance report is used by EPA to determine compliance with the Act.

For respondents who choose to withdraw from the program, the withdrawl notification is essential to notify EPA to discontinue the allocation of allowances to the source and enforcement of the acid rain provisions.

NOX Permitting Information collected on NOX compliance plans is used by EPA to evaluate these compliance plans. Information collected on applications for emissions averaging groups or AELs is used by EPA to determine whether to approve these applications. This information may also be used by the regulated community and the public to evaluate the activities of utilities, and 10 by EPA for program evaluation.

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.

3.1 Nonduplication Almost all information requested from respondents under this ICR is required by statute and, in most cases, is not available from other sources. Review of earlier and proposed forms resulted in the elimination of many redundant requirements. Where EPA needs information that has already been submitted, EPA is simply requiring a photocopy of the prior submittal.

EPA notes that many of the units that are subject to the Acid Rain Program are also subject to other programs, such as the New Source Performance Standards ( NSPS). Under programs such as NSPS, sources are required to submit monitoring data reports that match the particular format and averaging time of the applicable emission limits under those standards. Although not the same information as the information provided under the Acid Rain Program, the information is often generated by the same monitoring equipment.

3.2 Consultations The data requirements for the Acid Rain Program were developed with the benefit of extensive consultation with the Acid Rain Advisory Committee ( ARAC) during five meetings in 1991 lasting two to three days each. The Committee was composed of representatives of those entities most affected by or interested in the information requirements of the Acid Rain Program. Representation on the Committee was provided for industry, states, and environmental groups. Other parties consulted include the Utility Air Regulatory Group ( UARG), the State and Territorial Air Pollution Program Administrators ( STAPPA), and the Association of Local Air Pollution Control Officers ( ALAPCO).

Recommendations provided by ARAC strongly supported the use of standardized reporting forms for acid rain permit applications:

° Utilities affirmed that standardized forms reduce uncertainty about what constitutes a complete application and thus reduce the need to supply additional information in a second submission;

° States asserted that the use of standardized forms developed by EPA would reduce the time and effort states will need to implement an acid rain permit program; and 11 ° Environmental groups argued that the use of standardized forms provides greater assurance that permits will be enforceable in a consistent manner nationwide.

Many ARAC recommendations were incorporated into the acid rain regulations regarding permits and the related standardized forms.

Furthermore, since the beginning of implementation of the Acid Rain Program, representatives from the utility industry, monitoring equipment vendors, software programmers, consultants working together with utilities, and other interested parties have offered comments on the existing rule requirements, standard forms and electronic data reporting formats used to implement the Part 75 program. The EPA has used these comments to revise the rules, forms and reporting formats, especially changes in the formats to cover a wider group of units. In particular, the revised forms and electronic data reporting format have been revised in the past to address reporting requirements for gas fired units and oil fired units that are using pre approved monitoring exceptions to the use of CEMS. Industry groups have also worked together with EPA to revise the recordkeeping and reporting requirements in revisions to Part 75 in 1995, 1996, and 1999. Comments and suggestions from working groups, comprised of UARG, Class of 85 Regulatory Response Group, and the PJM Powerpool also were incorporated in designing the annual compliance forms.

Finally, EPA promulgated revisions to Part 75 in May 2002. For these revisions, EPA solicited and obtained input from a number of affected utilities and other interested parties. The Agency received numerous written comments on the proposed revisions, and used those comments, in part, to develop the final revisions. In particular, EPA modified the proposal to avoid certain changes that would have imposed reporting and recordkeeping burdens where the comments indicated that the benefit of the proposed changes would not necessarily outweigh the burdens. Examples of these changes include treatment of partial hour reporting for determining regulatory grace periods and the approach to allowing a new option for missing data for units that operate control devices on a seasonal basis. The result of the final rules were minor changes to the reporting and recordkeeping requirements for the majority of sources that should have only a minimal impact on respondents' burdens and costs, with some increased one time software costs, especially for sources that decide to adopt one or more of the new options allowed for under the final rule revisions.

3.3 Effects of Less Frequent Collection Collection of allowance transfer information for each transfer of allowances is necessary to effectively implement a system for issuing, recording, and tracking allowances, which is required by statute.

Conservation and Renewable Energy Reserve Collection of applications for allowances from the Conservation and Renewable Energy Reserve for emissions avoided through the use of conservation measures or renewable energy is required by statute and is vital to ( 1) determine qualification for these allowances, and ( 2) 12 establish the sequence for allocating allowances on a first come, first served basis.

Permits The requirement for the designated representatives of owners and operators of affected sources to submit permit applications every five years is a statutory requirement.

Emissions Monitoring Submission of monitoring plans once and submission of the results of any required monitoring to EPA no less often than every six months are required by statute. More frequent collections of emissions data ( i. e., quarterly), however, 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 year both for regulated sources and for EPA. This would slow down the process of true up and end of year verification of compliance.

Records of monitoring information are to be kept at the source for three years after the date of creation of the record. In certain circumstances, fuel flowmeter calibration and Appendix E testing records may have to be kept for up to five years if the owner or operator takes advantage of rule provisions that allow up to five years between tests. These five year recordkeeping requirements only apply if the owner or operator voluntarily elects either of these options as a cost effective approach for the owner or operator's specific circumstances.

Opt in Collection of permit applications for the opt in program occurs only once every five years, thus minimizing the respondent burden. This collection is necessary for the operation of the program; without it, EPA would not know which sources wanted to opt in, nor their baseline utilization, nor the lower of their 1985 actual or allowable emission rate. Collection of withdrawal notifications also occurs once; this is also a necessary collection.

NOX Permitting The Agency is required by statute to include NOX compliance plans as part of the Acid Rain permits. As mentioned earlier, Acid Rain permits are renewed every five years, so NOX affected sources must submit a NOX compliance plan once every five years.

3.4 General Guidelines Section 403( d) of Title IV requires that EPA establish a system for issuing, recording, and tracking allowances. To track allowances accurately and to help ensure the orderly and competitive functioning of the allowance system, it is essential that participants be able to report information on allowance transfers as they occur.

The general requirement that permit applicants submit information on standard forms is 13 established by Section 502( b) of Title V. The five year life of an acid rain permit is established by Section 408( a) of Title IV. This information collection does not violate the guidelines set forth by OMB. In some cases, records of Part 75, Appendix E test results or fuel flowmeter calibration test results may need to be retained for up to five years, but only if the owner or operator chooses to take advantage of the ability to extend the period between tests up to five years. In all other circumstances, Part 75 monitoring records must be kept for only three years.

3.5 Confidentiality and Sensitive Questions Information collected through this activity is not confidential or of a sensitive nature.

4. THE RESPONDENTS AND THE INFORMATION REQUESTED This section lists the major categories of businesses that participate in the Acid Rain 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.

4.1 Respondents/ NAICS & SIC Codes Title IV applies to " utility units," which are defined to include units that serve a generator producing electricity for sale or that did so in 1985. Entities owning " utility units" that are likely to participate in allowance transactions are Fossil Fuel Electric Power Generators ( NAICS code 221111) electric service providers ( SIC code 4911) and selected firms in the non utility generation industry, such as Coal Mining ( NAICS code 2121) coal mining service companies ( SIC code 1241). Participants in transactions and the annual auctions include security and commodity contracts intermediation and brokerages ( NAICS code 5231) ( SIC code 62).

Emissions Monitoring Utility units are required to submit emissions monitoring data under this ICR.

Opt in Potential participants in the opt in program are facilities that emit SO2 but are not designated affected units under Title IV. Such facilities include utility units that serve an electric generator of less than 25 MW that produces electricity for sale or that did so in 1985. Entities owning utility units under 25 MW that may participate in the opt in program are electric service providers ( SIC code 4911). Other potential participants are industrial boilers that are represented in a wide range of SIC categories.

4.2 Information Requested This section lists 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. 14 4.2.1 Data items, Including Recordkeeping Requirements Allowance Transfers All participants to allowance transfers are required to provide the following information for each allowance transfer:

° Allowance tracking system account number; ° Name, phone number, and facsimile number of the authorized account representative, along with the representative's signature and date of submission; and ° Serial numbers of allowances to be transferred.

In addition, if the designated representative chooses to identify the specific serialized allowances to be deducted from the unit's ATS account for annual reconciliation, then the following information is required:

° Allowance Tracking System account number; ° Type of deduction; ° Serial numbers of the allowance blocks to be deducted; and ° Dated signature of the designated representative.

Certificate of Representation Affected sources are assigned an allowance tracking system number and appoint a designated representative by submitting a certificate of representation. The data items requested for the certificate of representation are as follows:

° Source identification; ° Unit identification, including; a) unit type and category b) commence commercial operation date c) generator IDs of generators served by unit d) nameplate capacity( s) of the generators served by the unit e) list of applicable programs that the unit is subject to f) NAICS Code ° Name, address, e mail, telephone and facsimile number of the designated representative; ° Name, address, e mail, telephone and facsimile number of the alternate designated representative; ° List of " owners and operators" of the source and each unit at the source; ° Certification statement; ° Signature of designated representative; ° Signature of alternate designated representative; and ° Date signed. 15 Notification for Distribution of Proceeds from EPA Auctions EPA disburses one payment using electronic funds transfer/ direct deposit ( EFT/ DD) for each plant represented for the proceeds from the annual auctions of allowances. The following information is required for this notification for distribution of proceeds:

° Authorized Account Representative ( AAR) Identification; ° Name of the company receiving the payment; ° The company's taxpayer identification number; ° Bank account information; ° Plant name and plant code; and ° Signature of AAR.

General Account Holders ( Allowance Market Participants) Entities that are not affected sources ( such as individuals holding allowances) are required to submit a completed account information application or provide the following information to obtain an allowance tracking system account number, prior to or simultaneous with the first transfer:

° Organization or company name ( if applicable); ° Name, mailing address, phone number, facsimile number, and e mail address of the authorized account representative; ° Name of the alternate authorized account representative ( optional); ° A list of all persons subject to a binding agreement for the authorized account representative to represent their ownership interest with respect to the allowances held in the account; and ° Certification statement and the signatures and date for the authorized account representative, and alternate authorized account representative, if any.

Conservation and Renewable Energy Reserve In order to receive allowances from the Conservation and Renewable Energy Reserve for emissions avoided, each electric utility must submit an application to EPA. The application requires the following items:

° Name and phone number of the person( s) who completed the application; and name and phone number of contact person. ° Demonstration of qualification to receive allowances for emissions avoided; ° A list of the qualified energy conservation measures implemented and the qualified renewable energy sources used for purposes of avoiding emissions during the previous calendar year; ° Verification of ( 1) installation of energy conservation measures and the energy savings attained, and ( 2) plant operation using renewable energy and the energy generation attributable to renewable energy input; ° For utilities using the EPA Conservation Verification Protocol, the information and methodologies used in determining energy savings, including a description of 16 the conservation measures, the dates of claimed savings, the number of installations, the calculations used to determine energy savings, aggregate statistical information needed to calculate confidence levels, and a description of any comparison groups; ° Calculations of the number of tons of emissions avoided by implementing conservation measures or using renewable energy; and ° Identification of allowance tracking account( s) to which the Reserve allowances are to be allocated.

Permits Every affected source is required to have an Acid Rain permit. Acid Rain permits have five year permit terms. The permitting authority's operating permits rule governs the issuance of permits to new units and for renewal of existing Acid Rain permits.

A complete Acid Rain permit application includes the following information:

° Identification of the source ( plant name, ORIS code, State); ° Identification of affected units; ° A complete compliance plan; ° Standard requirements at 40 CFR 72.9; ° For new units, commence operation date and monitor certification deadline; ° Standard certification; and ° Name and signature of designated representative.

New Unit Exemption § 72.7 Operators of new units that serve generators with a nameplate capacity of 25 MW or less and use fuel with a sulfur content by weight of less than 0.05 percent may obtain an exemption from monitoring, permitting, and allowance requirements if they submit a certification with the following information:

° Unit Identification; ° Nameplate capacity of each of the generators served by the unit; ° The first full calendar year that the unit will meet the exemption requirements; ° The fuels currently burned by the unit, and that will be burned in the future, and their sulfur content by weight; ° Certification that the owners and operators will comply with all necessary requirements; and ° Standard certification at § 72.21( d)( 2).

Retired Unit Exemption Operators of affected units that are retired may obtain an exemption from the Acid Rain Program if they submit a retired unit exemption form with the following information:

° Unit identification; ° The date that the unit was ( or will be) permanently retired; 17 ° The first full calendar year that the unit will meet the exemption requirements; ° Certification that the unit is permanently retired and will comply with all necessary requirements; and ° Standard certification at § 72.21( d)( 2).

All data items requested from permit applicants must be submitted on standard forms. Most of the information requested in the forms is specifically required by law.

Emissions Monitoring 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 emissions data electronically, by direct electronic submission to EPA, and must also include a certification statement by the designated representative of the unit. Under the 2002 rule revisions, EPA requires the certification statement to be submitted electronically unless it approves a hardcopy submission. All records are to be kept for three years, with two possible exceptions under voluntary options that are discussed in section 3.3 of this ICR.

The 2002 Part 75 revisions add or revise some recordkeeping and reporting terms. Some of these are necessary for the rule requirements to match the actual reporting practices incorporated in the Electronic Data Reporting formats used for the Acid Rain Program. Others reflect minor rule changes.

Auctions For auctions, participants are required to submit a bid form and payment method at least six days prior to the date of the auction. Sealed bids are submitted on a standard bid form developed by EPA. Each bid provides the following basic information:

° Name; ° Account number ( or new account information); ° Allowance quantity and price; and ° Type of auction.

The bid also specifies an acceptable method of payment for the total bid price regardless of the type of auction ( spot or advance). Full payment for allowances  in an acceptable form  is required with the bid at the time of submission.

Opt in To obtain an opt in permit, applicants are required to submit a certificate of representation and an opt in permit application for each source. For all respondents, the 18 application must provide ( 1) general information on the source, ( 2) specific data about the source's fuel consumption and operating data for 1985, 1986, and 1987, and ( 3) data on the source's actual and allowable emission rates for 1985, as well as the current allowable emission rate. For permit applicants who plan to opt in and shut down, the compliance plan is based on a statement describing the source's plans for shutting down and replacing thermal energy.

The general information required of all opt in sources include the following items, as listed in Section 74.16 or another section as listed below:

° Source name and location; ° Name, address, telephone and facsimilie number of the designated representative; ° Name, address, telephone and facsimilie number of the alternate designated representative; ° Statement of certification; ° Complete record of fuel consumption and operating data for calendar years 1985, 1986, 1987, or other acceptable baseline; ° Actual and allowable emission rates for 1985, or if source was not operating in 1985, for a calendar year to be determined by the Administrator, as well as the current allowable emission rate; ° Statement provisions as indicated at 72.9; and ° Signature of designated representative and date of signature.

In addition, sources that opt in and continue to operate must meet the emission monitoring requirements that were listed above.

As part of the annual compliance certification report required in Section 74.43 for opt in units, respondents must report utilization information, and replacement of thermal energy and resulting transfer of allowances. The following information must be reported, as required in Sections 74.44 and 74.47:

° Source name and location; ° Name, mailing address, telephone and facsimilie number of source representative; ° Benchmark utilization, annual utilization, average utilization, end of year determination of reduced utilization, and the calculation of allowances deducted for reduced utilization ( if any); ° Amount of thermal energy replaced ( if the source has shut down or if the utilization rate has fallen due to replacement of thermal energy by another source), and the name and location of the source or sources providing replacement thermal energy; ° A calculation of the number of allowances transferred to each source providing replacement thermal energy; ° Allowance tracking system account number of the replacement units; and ° Dated signatures for all designated representatives.

All respondents who choose to withdraw from the program are required to notify the 19 Agency of their decision and provide the following information, as required in Section 74.18:

° Source account number; ° Name, address, telephone and facsimilie number of the designated representative; and ° A certification that emissions requirements will be met through Dec. 31 of the current year, and that all remaining allowances will be surrendered at that time.

NOx Permitting Regardless of the compliance option selected, the following elements must be included in the compliance plan for each source:

° Identification of the source; ° Identification of each affected unit at the source that is subject to these regulations; ° Identification of the boiler type of each unit; and ° Identification of the compliance option proposed for each unit.

For units that are choosing either standard or early election limits, the designated representative must simply check the appropriate box( es) to indicate the NOx compliance plan that is chosen.

For units that are in an averaging plan, the following additional information must be submitted:

° Identification of each unit in the plan; ° Each unit's standard emission limitation; ° The alternative contemporaneous applicable emission limitation for each unit ( in lb/ mmBtu); ° The annual heat input limit for each unit ( in mmBtu); ° The calculation for the equation outlined in Step 2 of the EPA form for emissions averaging; and ° The calendar years for which the averaging plan applies..

For an AEL, the designated representative must submit the following information:

AEL Demonstration Period For an AEL, the designated representative must first submit an application for an AEL demonstration period. The application must contain the following information in accordance with 40 CFR § 76.10( d):

° Identification of the unit; ° The type of control technology installed. If low NOx burner technology incorporating advanced and/ or separated overfire air is technically infeasible, a 20 justification including a technical analysis and evaluative report from the vendor of the system or from an independent architectural and engineering firm explaining why; ° Documentation that the installed NOx emission control system has been designed to meet the applicable emission limitation and that the system has been properly installed; ° The date the specific unit commenced operation following the installation of the NOx control equipment, or the date the specific unit became subject to the emission limitations ( whichever is later); ° The dates of the operating period ( minimum of 3 continuous months); ° Certification by the designated representative that the unit and the NOx control equipment were operated during the operating period in accordance with specifications and procedures designed to achieve the applicable emission limitation, with the operating conditions upon which the design of the NOx control equipment was based, and with vendor specifications and procedures; ° A brief statement describing the reason or reasons an AEL demonstration period is required for the specific unit; ° For the control technology, load range, O2 range, coal volatile matter range, and percentage of combustion air introduced through overfire air ports; ° Description of planned modifications; ° List of parametric tests to be conducted in accordance with 40 CFR § 76.15; ° Identification of the continuous emission monitoring data submitted pursuant to 40 CFR Part 75 that is to be used in assessing this application; ° An interim AEL, in lb/ mmBtu; and ° The proposed dates of the demonstration period.

Final AEL After the demonstration period, the owner or operator may petition the permitting authority for a final AEL. The petition must include the following information in accordance with 40 CFR § 76.10( e):

° Identification of the unit; ° Certification that the affected unit and the NOx control equipment have been properly operated during the demonstration period; ° Certification that the affected unit has installed all emission control equipment, made any operational modifications, and completed any upgrades and/ or maintenance to equipment specified in the demonstration period plan; ° A clear description of each step or modification taken during the demonstration period; ° Engineering design calculations and drawings that show the technical specifications for installation of any additional operational or emission control modifications installed during the demonstration period; ° Identification of the continuous monitoring data submitted pursuant to 40 CFR Part 75 that is to be used in assessing this application; 21 ° A report, based on the parametric testing, that describes the reasons for the failure of the installed NOx control equipment to meet the applicable emission limitation; ° The minimum NOx emission rate, in lb/ mmBtu, that the affected unit is able to achieve on an annual average basis; ° All supporting data and calculations documenting the determination of the proposed AEL; and ° For affected units that have installed an alternative technology, demonstration that the annual average reduction of NOx emissions is greater than 65 percent.

Recordkeeping All records are to be kept for three years, except for permitting records which are to be kept for the duration of the permit, or up to five years and certain new monitoring provisions.

4.2.2 Respondent activities Allowance Transfers Participants in the allowance transfer system that are not affected units are required to perform two tasks: ( 1) negotiate an agreement to designate an authorized account representative and file an account information application to open an Allowance Tracking System general account; and ( 2) complete and submit allowance transfers. Designating an authorized account representative and filing an account information application is required one time only, prior to or concurrent with conducting the first transfer of allowances. For each transfer of allowances, participants are required to complete and submit an allowance transfer form or provide the required information using the On line Allowance Transfer System ( OATS). Affected units that were required to submit a certification of representation under the initial ICR, must continue to prepare and submit allowance transfer information for each allowance transfer, and if the designated representative chooses, identifying the serial numbers of allowances to be deducted for annual reconciliation using the Allowance Deduction Form.

General account holders and affected units may change the authorized account representatives by submitting a subsequent allowance account information form or certificate of representation form respectively.

Conservation and Renewable Energy Reserve The tasks that must be performed by utilities applying for allowances from the Conservation and Renewable Energy Reserve are ( 1) designate the qualified energy conservation measures implemented and the qualified renewable energy sources used to avoid emissions, ( 2) verify installation of energy conservation measures or the plant operation using renewable energy, and the resulting benefits, ( 3) calculate the tons of emissions avoided, and ( 4) demonstrate qualification to receive allowances for emissions avoided. Generally, because utilities already perform these tasks to satisfy state requirements, utilities do not need to duplicate these efforts to apply for allowances from the Reserve. Rather, utilities primarily assemble the information resulting from these activities in an application and submit this application to EPA. 22 Obtaining a Permit The primary tasks to obtain a permit are listed below. These tasks are performed by existing sources required to renew their permits and new units during the period covered by this ICR. In general, sources with existing units, must reapply at least 6 months prior to the expiration of an existing permit, but the actual timeframe is governed by the permitting authority's operating permits rules.

° Designate a representative of the owners and operators of a source. Read the designated representative certification procedures. Negotiate an agreement to designate a representative for each unit at a source. Complete and submit the certification. This task is only relevant for a new Phase II source or if a source changes the designated representative. ° Prepare the permit application. Read the permit application instructions, then collect relevant information for the permit application. Complete the Phase II acid rain permit application. Where appropriate, provide specific information to support the use of compliance options for NOX. Review the information for accuracy and appropriateness and report the information to the permitting authority.

Emissions Monitoring The primary tasks that are performed by 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 as a part of automated data checks or electronic audits, or to field audits conducted by EPA. In addition, respondents must purchase the necessary monitoring hardware ( or pay for fuel sampling and analysis in some cases) and purchase the electronic data reporting software ( or software upgrades). To enable sources to perform self audits of submissions, EPA also has developed the Monitoring Data Checking ( MDC) software for use by affected sources. This software enables sources to run automated quality checks of reports prior to submittal to EPA and reduces the burden of having to respond to EPA generated error messages or follow up EPA audits.

Opt in In order to provide the information discussed in the previous section, participants must complete three tasks to participate in the opt in program: ( 1) submit a permit application, ( 2) meet monitoring requirements, and ( 3) submit annual compliance reports. Respondents who choose to withdraw are required to submit a withdrawal notification.

The primary tasks that must be completed to obtain a permit and the activities associated with them are listed below. These tasks will be performed only once during the period covered by this ICR. 23 ° Designate a representative of the owners and operators of a source. Read the designated representative certification procedures. Negotiate an agreement to designate a representative for each source. Complete and submit the certification. ° Prepare the permit application. Read the permit application instructions, then collect relevant information for the permit application. Complete written forms, including an application for an opt in permit. Review the information for accuracy and appropriateness. Submit the information to EPA, sending copies to the appropriate EPA regional office.

Respondents who opt in and continue to operate must also perform the task required under the emissions monitoring section above. Respondents who opt in and shut down do not need to perform any tasks related to monitoring.

To withdraw from the program, respondents must notify EPA of their decision to withdraw. Notification entails providing EPA with the data items presented in Section 3.2.1..

Opt in sources covered by a thermal energy plan, must also report information concerning the replacement of thermal energy, including the identification of the source or sources providing replacement thermal energy, and the allowances transferred as a result of the replacement of thermal energy.

NOX Permitting The primary tasks for a NOX compliance plan are listed below.

° Prepare the NOX compliance plan application. Read the application instructions, then collect relevant information. Analyze compliance options and plan compliance. Complete written forms. Review the information for accuracy and appropriateness and report the information to the permitting authority and send a copy to the EPA. Preparing a NOX compliance plan application may include interpreting the rule, collecting information and completing and submitting a NOX averaging plan, or an AEL petition.

Because each source must renew its Acid Rain permit every five years, EPA assumes the tasks for permitting will be performed by 20% of all NOX affected sources annually, in accordance with Section 408.

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 24 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.

5.1 Agency Activities Allowance Transfers Collections associated with operating the allowance transfer system requires EPA to ( 1) track allowance holders and maintain allowance accounts, ( 2) review allowance transfer information for completeness and ensure that all requirements are met, ( 3) record allowance transfers, and ( 4) notify both participants in a transfer whether the transfer was recorded. EPA has developed a computer system called the Allowance Tracking System ( ATS) to track allowances and maintain information on accounts. In addition, EPA now has a system that allows market participants to submit transfers over the internet and that provides real time transfers and instantaneous confirmation.

Conservation and Renewable Energy Reserve Activities that must be performed by EPA to distribute allowances from the Conservation and Renewable Energy Reserve include ( 1) registering applications and reviewing applications for completeness, ( 2) performing substantive reviews of applications to determine whether all necessary criteria to receive allowances have been met, ( 3) transferring allowances from the Reserve or notifying applicants of their failure to qualify for allowances from the Reserve, and ( 4) for utilities using the EPA Conservation Verification Protocol, verifying the quantified energy savings from conservation measures.

Permits EPA staff administering the permit program perform the following task:

° Review certificates of representation, enter the information in the Clean Air Markets Database ( CAMD), and notify the representative.

Permitting authority staff, generally at the state or local level, perform the following tasks:

° Review permit applications and issue permits. Receive and review permit applications and record submissions. Provide notice to applicants whether permit applications are complete. Reformat collected data items to constitute proposed and final permits. Provide opportunities for public comment and participation.

Emissions Monitoring The major EPA activities related to emissions monitoring and reporting include ( 1) reviewing monitoring plans and certification applications, and ( 2) processing, reviewing and evaluating reports of quarterly emissions data from affected units. EPA has developed a 25 computer system called the Emissions Tracking System ( ETS) to track and maintain this information. EPA also answers respondent questions and conducts audits of data submissions and field audits of monitoring systems. The use of the Monitoring Data Checking software streamlines EPA's process for conducting many of these checks.

Auctions EPA staff administering the auctions receive the sealed bids and payments, enters the information provided on bid forms into a computer system, and deposits the checks into a designated bank account. ( Collectively, these activities comprise handling of bids and checks.) After bids are recorded, they are ranked using a computer program and then the allowances are allocated. EPA announces the results by posting them on the EPA website. Finally, after payment is verified, EPA records the transfer of allowances and transfers the proceeds from the auction to the owners and operators from whom the allowances were withheld. EPA has developed a computer system to track the payment of proceeds.

Opt in EPA staff administering the opt in permit program perform the following tasks for each opt in applicant:

° Review certificate of representation, record information, and notify representative. ° Review permit application. Receive and review permit application and record submission. Provide notice to applicant as to whether permit application is complete. Reformat collected data items to constitute proposed and final permit. ° Notify applicant regarding allowances. Notify the opt in permit applicant of the number of allowances the applicant would receive each year as an opt in source.

EPA activities related to withdrawals will be to process the withdrawal notification, and ensure that all unused allowances have been surrendered at the end of the calendar year.

NOX Permitting Agency staff perform the following task.

° Review NOx compliance plan applications. Receive and review applications and record submissions. Provide notice to applicants whether applications are complete.

5.2 Collection Methodology and Management To ensure consistency nationwide and to expedite ( 1) data entry, ( 2) the allocation of allowances from Reserves, and ( 3) permit issuance, EPA requires that standard reporting forms or equivalent formats or standard electronic reporting formats be used to submit all information to be collected under this ICR. The standard forms are included in Appendix C.

Currently, respondents to collections for allowance transfer information may submit the 26 required information on a standard written form, or using an electronic format. Permit applications are submitted on standard paper forms, as are certifications for new and retired unit exemptions. EPA requires that standard electronic data reporting ( EDR) formats be used to submit information to be collected under Part 75 and, under the 1999 rule revisions, EPA also required that data be sent via direct electronic submission to EPA beginning in the year 2001. The current EDR formats ( version 2.2) are included in Appendix C to this document.

Several computer systems and associated databases have been developed to ( 1) track allowances, ( 2) record quarterly emissions monitoring data, ( 3) track auction proceed payments, and ( 4) calculate the number of allowances to be deducted each year. In 2001, EPA also made available the 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 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.

5.3 Small Entity Flexibility For the purposes of the Acid Rain Program, EPA has adopted the Small Business Administration's definition of a " small" electric power utility as one that generates a total of less than 4 billion kilowatt hours per year. Generally, although about two thirds of the affected sources in Phase II generate a total of less than 4 billion kilowatt hours per year and are required to participate in some collections under this ICR ( e. g., submitting information for certification of monitors and submitting quarterly emissions monitoring reports), the costs to these sources for collections under this ICR are small relative to the revenues they generate.

All affected sources under the Clean Air Act Amendments of 1990 are required to submit permit applications and to respond to other collections under this ICR, according to the same parameters ( with the exception of operators of new units of 25 MW or less, who may receive an exemption from the Acid Rain Program requirements if they qualify). Retired units may also be exempted from some reporting requirements.

The use of standardized forms will enable small entities to understand and complete permit application submissions without the level of staffing which would be necessary in the absence of such forms.

In the January 11, 1993 final Acid Rain Core Rules, EPA provided for a conditional exemption from the emissions reduction, permitting, and emissions monitoring requirements of the Acid Rain Program for new units having a nameplate capacity of 25 MWe or less that burn fuels with a sulfur content no greater than 0.05 percent by weight, because of the high cost of monitoring emissions from these sources and the de minimis nature of their emissions. 27 The Part 75 rule revisions also create an additional small unit exception. This exception incorporates optional reduced monitoring, quality assurance, and reporting requirements into Part 75 for units that combust gas and/ or fuel oil and that have low levels of mass emissions ( referred to as low mass emissions ( LME) units). Originally, EPA required that LME units emit no more than 25 tons of SO2 and no more than 50 tons of NOx annually, and that they calculate no more than 25 tons of SO2 and no more than 50 tons of NOx annually based on required procedures for calculating and reporting emissions. As part of the 2002 Part 75 revisions, EPA has increased the NOx threshold to < 100 tons per year ( and, for units that are subject to the NOx SIP Call, no more than 50 tons per ozone season). Qualifying LME units are no longer required to keep monitoring equipment installed on ( or conduct sulfur in fuel sampling for) low mass emissions units, nor are they required to perform quality assurance or quality control tests. Moreover, emissions reporting requirements are significantly simplified for these units.

Even if a gas or oil fired unit does not qualify for the LME provisions, Part 75 allows gas and oil fired units to use methods other than continuous emission monitoring systems ( CEMS). The 1999 Part 75 revisions significantly reduced the costs and burdens associated with fuel sampling and QA activities for these non CEMS methods. 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).

Further reductions in requirements aimed specifically for small entities are limited because of the statutory requirements that all affected units use CEMS ( or an equivalent method) to record and report emissions data for Title IV purposes.

5.4 Collection Schedule Allowance Transactions There is no specific collection schedule associated with allowance transactions.

Conservation and Renewable Energy Reserve Submitting applications for allowances from the Conservation and Renewable Energy Reserve is voluntary. Allowances from the Reserve will be allocated on a first come, firstserved basis during the period from January 1, 1992 to December 31, 2009.

Permits In general, each Acid Rain permit is effective for five years. Revisions to the permit may be submitted at any time.

Emissions Monitoring Monitoring plans must be submitted only once, although certain elements of the monitoring plan are submitted ( and updated as necessary) routinely as part of the EDR format. Only new units will have to apply for certification during the 2003 2005 time period. While some monitors will be required to apply for recertification, there is no set schedule for 28 recertification.

Quarterly reports are due for each quarter during the life of this information collection request. In addition, EPA has provided for notifications to the Agency for semi annual or annual quality assurance testing and for situations where a unit will have a revised certification deadline ( for example, notifications of unit start up for new units).

Auctions The spot and advance auctions are currently held before March 31 of each year. The cutoff date for submission of bids is only a few days prior to the auction in order to limit the time EPA holds the bidders' money.

Opt in Opting in to the allowance program requires just one information collection ( although monitoring information for affected sources must be collected quarterly). Opt in permit applications may be submitted to EPA and the permitting authority at any time. Permits must be renewed at that time, and every five years thereafter. Revisions to the permit may be submitted at any time.

Monitoring plans must be submitted only once, at the time the opt in permit application is submitted. The data upon which EPA will base its certification of each emissions monitor may be submitted after the source receives a draft opt in permit, but must be submitted before the source may be designated an affected source. ( Monitors must be installed, certified by EPA, and operating before the source may be designated an affected source.) Emissions data to meet reporting requirements are collected quarterly, 30 days after the end of each calendar quarter, beginning at the end of the first quarter in which the source becomes an affected source.

Compliance reports must be sent annually. Allowance transfer information must be submitted once for each transfer; a certificate of representation needs to be submitted only once, at the same time as the opt in application.

Withdrawing requires only one information collection.

NOX Permitting Acid Rain permits, including NOX compliance plans must be renewed every five years.

6. ESTIMATING THE BURDEN AND COST OF COLLECTIONS This section estimates the paperwork burden and cost of ( 1) tracking and transferring allowances, ( 2) obtaining and distributing allowances from the Conservation and Renewable Energy Reserve, ( 3) obtaining and issuing permits, ( 4) submitting monitoring plans, obtaining certification of each monitor, and recording and reporting data from CEM systems, ( 5) the auction program, ( 6) the opt in program, and ( 7) NOX permitting. 29 First, assumptions regarding allowance transfers are presented, followed by the annual respondent and Agency burden and cost estimates associated with allowance transfers. Subsequent sections separately address allowances for energy conservation and renewable energy use, permits, emissions monitoring, auctions, opt in, and NOX permitting. Finally, aggregate annual burden hour and cost estimates to respondents and to EPA for collections covered by this ICR are presented.

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 2004 and 2005, EPA could assume that about 5,200 privately submitted allowance transfers will be made each year, 2007 through 2009. However, given that the Acid Rain Program is moving to facility level compliance beginning in 2006, this number would turn out to be a substantial overestimate. That's because a large number of transfers are made to move allowances among the different unit accounts at a facility for compliance purposes. Switching to a single facility account for compliance will eliminate all of these transfers. Since there are an average of three units per facility, EPA is assuming that the number of privately submitted allowance transfers will be about 1,700 ( one third of the 5,200 from prior years) each year, 2007 through 2009.

Affected facilities have the option of identifying specific serial numbered allowances to be deducted by EPA. Based on past experience, EPA assumes that approximately half of all affected facilities will submit an optional allowance deduction form each year. EPA estimates that an average of 645 facilities will be submit the optional deduction forms each year during the period covered by this ICR ( 2007  2009).

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 30 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, 1,700 transfers will be made annually, and 645 deduction forms are submitted the burden to respondents will be about 5,885 hours annually. The cost to respondents will be about $ 407,669 annually. 31 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 1,700 $ 143,531.00 Technical 1 $ 58.00 1,700 $ 98,600.00 Allowance deduction form ( optional)

Managerial 1 $ 84.43 645 $ 54,457.35 Technical 2 $ 116 1,290 $ 74,820.00 TOTAL 5,885 $ 407,669.30 a 2006 dollars. b Assumes 55 participants file new account applications, 1,700 transfers are made, and 645 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. Also, to allow for the transfer of future year allowances, the allowance tracking system will contain allowance information for thirty years into the future. 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. 32 EPA incurs annual operation and maintenance ( O& M) costs for running an electronic transmission network, system enhancement, general maintenance, and employee salaries. These O& M costs are estimated at $ 1.5 million annually.

Allowance Transfer System Upon receipt of an allowance transfer notification in hard copy form, EPA will ( 1) review allowance transfer information for completeness and ensure that all requirements have been met, ( 2) record allowance transfers, and ( 3) notify both participants to a transfer whether the transfer was recorded. EPA estimates that it will require an average of one hour to perform these activities for each notification. 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 500 ( out of the 1,700 total) transfers will be made using paper forms each year and 100 ( out of the 645 total) deduction submissions will be on paper, the annual burden to EPA will be about 550 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 $ 30,058 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 $ 54.65 500 $ 27,325.00 Enter deduction data and deduct allowances 0.5 $ 27.33 50 $ 2,733.00 TOTAL 550 $ 30,058.00 a 2006 dollars. b Assumes 500 transfers and 100 optional deduction forms are submitted annually.

6.2 Obtaining and Distributing Allowances From the Conservation and Renewable Energy Reserve Although it is difficult to predict the number of utilities that will apply for allowances from the Conservation and Renewable Energy Reserve, based on the previous two years this analysis assumes that no applications will be submitted each year ( 2007 through 2009). 33 6.2.1 Estimate of Respondent Burden and Costs Exhibit 3 depicts the annual respondent burden and costs associated with obtaining allowances from the Conservation and Renewable Energy Reserve. Each utility applying for allowances from the Reserve is required to perform the following tasks: ( 1) designate energy conservation measures implemented and renewable energy sources used to avoid emissions; ( 2) verify savings from energy conservation measures and/ or amount of generation from renewable energy; ( 3) calculate the tons of emissions avoided; and ( 4) demonstrate qualification to receive allowances for emissions avoided. Because most states already collect information on these activities from utilities, the primary burden to utilities would be that associated with assembling and submitting to EPA the application to receive allowances from the Reserve. If someone chose to apply, EPA assumes it would take about 46 hours to assemble and submit an application to receive allowances from the Reserve to EPA, and an additional 32 hours if the applicant chose to assemble and submit the information required in the EPA Conservation Verification Protocol. 34 EXHIBIT 3 ANNUAL RESPONDENT BURDEN/ COST ESTIMATES FOR CONSERVATION AND RENEWABLE ENERGY ALLOWANCES Tasks Burden Hours per Application Cost per Applicationa Total Burden ( Hours) Total Costs Assemble and submit an application to receive allowances from the Reserveb Managerial 11 $ 928.73 0 $ 0 Technical 35 $ 2,030.00 0 $ 0 Assemble and submit the information required in the EPA Conservation Verification Protocolc Managerial 7 $ 591.01 0 $ 0 Technical 25 $ 1,450.00 0 $ 0 TOTAL 0 $ 0 a 2006 dollars. b Assumes 0 applications each year ( 2007 2009). c Assumes 0 applicants will utilize the EPA Conservation Verification Protocol each year.

6.2.2 Estimate of Agency Burden and Costs Exhibit 4 depicts the annual burden and costs to EPA associated with distributing allowances from the Conservation and Renewable Energy Reserve. Tasks performed by EPA related to the distribution of allowances from the Reserve include the following: ( 1) register applications and review applications for completeness; ( 2) perform substantive reviews of applications to determine whether all necessary criteria to receive allowances have been met; ( 3) transfer allowances from the Reserve or notify applicants of their failure to qualify for allowances from the Reserve; and ( 4) for utilities that choose to use the EPA Conservation Verification Protocol, verify the quantified energy savings from conservation measures. EPA assumes it takes about 11 hours to process each application and transfer allowances ( or notify applicants). 35 EXHIBIT 4 ANNUAL AGENCY BURDEN/ COST ESTIMATES FOR CONSERVATION AND RENEWABLE ENERGY ALLOWANCES Tasks Burden Hours per Application Cost per Applicationa Total Burden ( Hours) Total Costs Register application and review for completenessb 1 $ 54.65 0 $ 0 Perform substantive review of applicationb 4 $ 218.60 0 $ 0 Transfer allowances from the Reserve or notify applicantsb 1 $ 54.65 0 $ 0 Verify energy savings based upon the EPA Conservation Verification Protocolc 5 $ 273.25 0 $ 0 TOTAL 0 $ 0 a 2006 dollars. b Assumes 0 applications each year ( 2007 2009). c Assumes 0 applicants will utilize the EPA Conservation Verification Protocol.

6.3 Obtaining and Issuing Permits This part presents estimates of the level of effort required and the associated costs to permit applicants and either EPA or the permitting authority of obtaining and issuing permits. This analysis estimates the cost and burden for new sources required to obtain permits for Phase II, for sources changing designated representatives, and sources renewing their permit.

All applicants for permits will be required to submit a general acid rain permit application for each affected source that covers all units at the source.

6.3.1 Estimate of Respondent Burden and Costs for Permiting Exhibit 5 depicts the burden and costs to respondents for ( 1) selecting a new designated representative, ( 2) submitting Phase II permit application, ( 3) submitting a retired unit exemption, and ( 4) submitting a new unit exemption. Based on the past two years of operation, EPA assumes that each year 800 Certificate of representation forms will be submitted to appoint new designated representatives, 20% of all sources will submit Phase II permit applications ( this number includes both new sources and sources renewing their permits), 33 units will submit retired unit exemptions, and 33 units will submit new unit exemptions.

The total annual respondent burden is estimated to be 13,531 hours. The costs 36 associated with the permitting process are estimated at $ 1,012,000 annually.

EXHIBIT 5 RESPONDENT BURDEN/ COST ESTIMATES FOR PERMITS Tasks Burden Hours Per Occurrence Cost Per Occurrencea Total Burden Total Cost Change Designated Representaiveb Managerial 10 $ 844.30 8,000 $ 675,440.00 Technical 5 $ 290.00 4,000 $ 232,000.00 Phase II Permit Applicationsc Managerial 2 $ 168.86 520 $ 43,903.60 Technical 3 $ 174.00 780 $ 45,240.00 Retired Unit Exemptiond Managerial 1 $ 84.43 33 $ 2,786.19 Technical 2 $ 116.00 66 $ 3,828.00 New Unit Exemptione Managerial 1 $ 84.43 33 $ 2,786.19 Technical 3 $ 174.00 99 $ 5,742.00 TOTAL 13,531 $ 1,011,726.00 a 2006 dollars. b Assumes that 800 certificate of representation forms will be submitted. c Assumes 260 sources ( 20% of all affected sources) will submit Phase II permit applications each year. d Assumes 33 units will submit retired unit exemptions each year. e Assumes 33 units will submit new unit exemptions each year. 37 6.3.2 Estimate of Agency/ Permitting Authority Burden and Costs for Permitting Exhibit 6 presents the burden and costs to EPA and the permitting authority to review and process permit information. The primary tasks performed by EPA are reviewing certificates of representation, and reviewing permit applications. The primary tasks performed by the permitting authority are reviewing and processing permit applications, notifying the public, and issuing proposed and final permits, and reviewing new and retired unit exemptions. Reviewing a certificate of representation and determining completeness notice is estimated to require half an hour. Reviewing the permit application, notifying the public, and issuing proposed and final permits is estimated to require 9 hours per occurrence. The Agency's total annual effort will be 680 hours. The total cost to EPA for all permitting activities will be about $ 37,156. The total annual estimated burden and cost to the Permitting Authorities is 2,212 hours and $ 120,885.

EXHIBIT 6 ANNUAL AGENCY/ PERMITTING AUTHORITY BURDEN/ COST ESTIMATES FOR PERMITS Tasks Burden Hours Per Occurrence Cost Per Sourcea Total Burden ( Hours) Total Cost EPA reviews certificates of representation and records informationb 0.5 $ 27.33 400 $ 21,864.00 Review permit application, and issue draft, proposed, and final permitc Permitting Authority action 8 $ 437.20 2,080 $ 113,672.00 EPA review 1 $ 54.65 260 $ 14,209.00 Receive and process retired and new unit exemptionsd Permitting Authority action 2 $ 109.30 132 $ 7,213.80 EPA review 0.3 $ 16.40 20 $ 1,082.40 TOTAL 2,892 $ 158,041.20 a 2006 dollars. b Assumes 800 sources submit a certificate of representation. c Assumes 260 sources ( 20% of all affected sources) will submit Phase II permit applications each year. d Assumes 33 retired and 33 new unit exemptions are submitted each year.

6.4 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 38 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).

The legislative requirements in Title IV require all affected Phase I and Phase II sources to install SO2 and NOx CEM systems, opacity monitors ( COMS), and flow monitors ( or approved alternatives). Data handling or reporting is required by the law, but not specified. Under the promulgated regulations, however, EPA imposes data handling, reporting, and recordkeeping requirements. The EPA requires that all affected units required to install CEM systems use a data acquisition and handling system ( DAHS) to record hourly CEM and flow monitor data in the EDR format. Affected gas and oil fired units may elect to use the approved alternative SO2 monitoring method and record fuel sulfur analysis data, and then use a DAHS to record and report hourly fuel flow values from a fuel flow meter in the EDR format. In addition, peaking units that burn natural gas and/ or fuel oil may use an excepted method for calculating NOx emission rates. Finally, EPA allows certain low mass emissions ( LME) units to use assumed emission factors together with operational data to calculate emissions.

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. In 1999, EPA promulgated significant revisions to Part 75 to address a number of implementation concerns that affected sources had raised. In 2002, EPA promulgated less significant revisions to Part 75 that addressed a number of procedural and technical issues, the possibility of non load based units using Part 75 as part of the NOx SIP Call, and the expanded use of the LME provisions.

To quantify the respondents' burdens and costs, EPA has analyzed existing data reported by the affected sources and developed model unit categories to classify and characterize the affected population.

A projection of the number of new units that will come on line in 2007  2009 was also made and included in the unit counts. The new unit estimates were based on the four year average of new units coming on line in the 2002   2005 period ( 203 units/ year). New units were apportioned to the different monitoring methodologies based on the four year average of new units coming on line for each methodology.

The result of this analysis characterizes the total number of reporting units into the following model categories:

Model A ( units with SO2, flow, NOx, and CO2 CEMS): 1010 total units. 39 Model B ( units with opacity CEMS solely as a result of Title IV): 500 total units.

( Note: these units also are classified under other models for SO2, NOx, and CO2 requirements.)

Model C ( units with Appendix D monitoring for SO2 and CEMS for NOx): 2111 total units.

Model D ( units using both Appendix D and Appendix E for SO2 and NOx): 308 total units.

Model E ( units using the LME methodology): 108 total units Model F ( units with moisture monitors necessary for moisture correction): 100 total units. ( Note: These units are also classified under other models for SO2, NOx, and CO2 requirements.)

To estimate the burden and/ or cost for each model, EPA has relied on the estimates included in the prior 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 existing ICR but are updated to 2006 dollars using the Employment Cost Index, consistent with Agency ICR guidance.

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. In addition, if EPA conducts a field audit, the burden to a source could 40 involve from 24 to 36 hours. However, on a per unit basis, these field audit impacts are less significant because not every unit will be subject to an audit in a particular year. EPA projects no more than 10 audits per year. If the average burden of an audit is 30 hours per audit, the per unit burden for all units that would be associated with EPA's audit activities is less than one hour of burden per respondent. Note that, because this activity should be inapplicable for the simplified reporting required of low mass emissions units, the total number of respondents for this activity excludes the LME units.

( iii) DAHS Upgrade and 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 2006 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. At this time, EPA does not believe that there is adequate information to expect reduced reporting burdens under the Acid Rain Program as a result of those rule revisions, although EPA anticipates that will be the long term result. Upon the next renewal of this ICR, EPA will examine this issue in more detail as the impacts of the rule revisions and data system changes on the reporting burdens will be better understood at that time. For the time period of this ICR, 2007 2009, no other changes would require a DAHS upgrade and therefore the burden hours for this activity are reduced to zero."

( 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 the average number of new units for 2002, 2003, 2004, and 2005 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.

Based on information gathered as part of the 1999 rule revisions, EPA included assumptions in the previous ICR renewal to include labor burdens for monitor certification activity as well as test contractor costs. 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 41 costs are incorporated within the annual QA costs for previously certified monitoring systems. 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). Finally, for units that use the LME provisions, no QA requirements apply except for units that use the unit specific default value option. Those units are required to test the unit to determine a unit specific value. That cost has been included as a contractor cost for all new LME units. Using the data discussed above, EPA estimates that the average respondent ( using a weighted average for the units that fall under Models A F) will require approximately 450 labor hours to meet the QA requirements of Part 75. Consistent with the existing ICR, this labor is expected to be almost entirely technician labor.

( 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. The 1996 ICR estimated 240 hours per unit for this activity. As a result of the 1999 Part 75 revisions, this estimate was decreased to 204 hours, but that estimate was not based on consideration of potential changes in burden that may have occurred outside the scope of the specific reduced reporting requirements in the 1999 rule revisions. Based on consultations with a few utility representatives in 2002, EPA determined that this burden activity area significantly overstated the average burden levels, although it may have been accurate for some units. The contacts provided a fairly wide range of estimates for this activity, however, and thus EPA conservatively used a 102 hour per unit estimate in the 2002 ICR renewal ( a 50% reduction from the 1999 ICR). This burden estimate is being used this 42 renewal as well. As noted above, future changes to EPA's data systems may enable respondents to streamline their reporting burdens, and EPA anticipates examining that issue in detail as part of the next renewal of this ICR. For LME units, the estimate remains at 16 hours per year for each LME unit.

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 43 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. The estimated Agency burdens remain the same as the 2002 ICR on a per report basis ( two hours). Even though EPA intends to increase its audit oversight efforts, there is no increased per report burden because of offsetting burden reductions from increasing familiarity with the program and improved automated tools. 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 8 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) 1,244 sources will review instructions and requirements; ( b) 1139 sources ( this number excludes sources with only low mass emissions units and new units) will 44 reprogram and debug DAHS computer software; ( c) 3,537 units will submit quarterly reports; and ( d) 3,429 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 ( units using the LME methodology are excluded from these activities). In addition, EPA estimates that approximately 294 units will recertify per year. Exhibit 7 shows the total burden and total cost based on this respondent universe. 45 46 EXHIBIT 7 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 1244 9,952 $ 709,080 2. Respond to EPA Generated Error Messages, Field Audits 6 18 24 $ 1,551 $ 0 $ 0 3429 82,296 $ 5,318,379 3a. DAHS Upgrade 0 0 0 $ 0 $ 0 $ 0 0 0 $ 0 3b. DAHS Debugging 4 12 16 $ 1,034 $ 0 $ 0 1139 18,224 $ 1,177,726 4. New Unit Monitoring Plans 10 10 20 $ 1,424 $ 0 $ 0 203 4,060 $ 289,072 5. Recertify Monitors 38 12 50 $ 3,904 $ 3,400 $ 0 294 14,700 $ 2,147,376 6. Startup/ Capital Items and Perform QA Testing and Maintenance ( a) Model A ( CEMS) 50 480 530 $ 32,062 $ 31,200 $ 28,879 1010 535,300 $ 93,062,410 ( b) Model B ( COMS) 0 171 171 $ 9,918 $ 288 $ 3,560 500 85,500 $ 6,883,000 ( c) Model C ( App D Nox CEM) 20 375 395 $ 23,439 $ 17,400 $ 18,750 2111 833,845 $ 125,792,379 ( d) Model D ( App D and E) 5 30 35 $ 2,162 $ 1,800 $ 2,250 308 10,780 $ 1,913,296 ( e) Model E ( LME) 0 0 0 $ 0 $ 1,944 $ 0 108 0 $ 209,952 ( f) Model F ( H2O) 0 40 40 $ 2,320 $ 8,000 $ 854 100 4,000 $ 1,117,400 7a. Assure Data Quality, Prepare Reports ( inc. monitor plan update), Submit Reports 20 82 102 $ 6,445 $ 0 $ 0 3429 349,758 $ 22,099,905 7b. LME Reporting 4 12 16 $ 1,034 0 0 108 1,728 $ 111,672 8. Annual Fuel Sampling 0 0 0 $ 0 $ 0 $ 0 0 0 $ 0 TOTAL: 1,950,143 $ 260,831,647 47 48 EXHIBIT 8 ANNUAL AGENCY BURDEN/ COST ESTIMATES FOR EMISSIONS REPORTING Tasks Quarterly Burden Hours Per Report Quarterly Cost Per Reporta, b Number of Reportsc Total Burden Per Year ( hours) ( 2007 2009) Total Cost Process, review, and evaluate quarterly report and issue feedback letter 2 $ 54.65 14,148 28,296 $ 1,546,376 a Based on an average total compensation rate of $ 54.65 per hour b Updated from 2002 dollars using the same factor ( 1.15) as used to update the Respondent labor cost.

c Assumes 3,537 emission data reports each quarter.

6.5 Auctions This part presents estimates of the burden and costs to participants and the Federal government associated with the auction program.

Auctions are held only once a year. No restrictions are placed on the number of allowances for which a participant may bid. Multiple bids from a given participant are permitted, but each bid is treated individually and requires a separate bid form. Based on the average number of bids in the past two auctions, EPA estimates that 111 bids will be received each year.

6.5.1 Estimate of Respondent Burden and Costs Exhibit 9 depicts the burden and costs to auction participants. Auction participants must complete and submit the bid form along with a certified check, letter of credit, or wire transfer. EPA estimates that the auction bid form takes approximately 30 minutes to prepare, and obtaining a means of payment takes approximately one hour. This estimate includes time allocated to research the required information, fill out the form, arrange for a certified check, letter of credit, wire transfer, and send the material to EPA. The burden and cost to auction participants is estimated to be 166.5 hours and $ 13,177 per year respectively. 49 EXHIBIT 9 ANNUAL RESPONDENT BURDEN/ COST ESTIMATES FOR AUCTIONS Collection Activities Burden Hours Per Bid Cost Per Bida Burden Hours Per Year Cost Per Year 1. Completing bid formsb 0.5 $ 39.57 55.5 $ 4,392.27 2. Obtaining means of paymentb 1 $ 79.14 111 $ 8,784.54 TOTAL: 1.5 $ 118.71 166.5 $ 13,176.81 a Based on an average rate of $ 79.14 per hour ( For costing purposes, it is assumed that 80 percent of the total hours will be Managerial ($ 84.43/ hr.) and 20 percent will be Technical ($ 58.00/ hr.). These estimates are based on 2006 dollars. b The 111 bids represents an average number of bids over the past four EPA auctions.

6.5.2 Estimate of Agency Burden and Costs Exhibit 10 depicts the burden and cost to EPA for the auction program. Based on past experience, the burden and cost to the Agency will be about the same each year. Setting up and revising allowance tracking system ( ATS) accounts for auction participants is estimated to take 10 hours, the handling of bids and checks is estimated to take 20 hours, tabulation, checking, and announcing the auction results is estimated to take 15 hours, and transferring allowances and proceeds is expected to require 40 hours per year. As Exhibit 10 shows, the total burden to EPA for auction activities is 85 hours at a cost of $ 4,645.

EXHIBIT 10 ANNUAL AGENCY BURDEN/ COST ESTIMATES FOR AUCTIONS Collection Activities Burden Hours Per Year Cost Per Yeara 1. Setup ATS accounts 10 $ 546.50 2. Handle bids and checks 20 $ 1,093.00 3. Tabulate, check, and announce results 15 $ 819.75 4. Transfer of allowances and proceeds 40 $ 2,186.00 TOTAL: 85 $ 4,645.25 a 2006 dollars.

6.6 The Opt in Program This subsection describes projections for ( 1) the number and types of sources that elect to participate in the opt in program for the time period covered by this ICR, ( 2) the paperwork burden hours for both respondents and EPA associated with the program, and ( 3) the total costs of the tasks required by the opt in program. 50 Over the three years covered by this ICR, EPA estimates that no sources will opt in to the program. This figure is based on the number of opt in applications EPA has received over the past three years.

6.6.1 Respondent Burden/ Cost Estimates for The Opt in Program The tasks under this program are divided into the major categories of reporting  permitting, emissions monitoring, and annual compliance certification. This section includes only the burden for these task categories for opt in sources. Those affected sources covered by the mandatory requirements of the Acid Rain Program are covered in previous sections.

A. Opt in Permit Applications EPA estimates that no sources will submit a permit application in the years covered by this ICR. However, if a source would chose to submit an application, the source must select a designated representative, report operating and fuel consumption data from past years, and report the actual and allowable emissions rates for 1985 as well as the current allowable emission rate. Since we expect no applications, there is no burden or cost for this activity.

B. Emissions Data Reporting Emissions reporting is performed only by operating sources. The tasks for opt in sources are identical to other affected sources and are listed in Exhibit 7. The burden and costs for emissions reporting from opt in sources are included in the total in Exhibit 7.

C. Annual Reconciliation Annual reconciliation is performed by all opt in sources. Each unit at an opt in source is required to submit an opt in utilization form. Additionally, if the source is covered by a thermal energy compliance plan, it must submit a thermal energy compliance report. If an opt in source has reduced utilization due to energy conservation or improved unit efficiency measures, it has the option of submitting an energy confirmation and improved unit efficiency confirmation report to verify the savings and offset the corresponding reduced utilization. To date none of the opt in sources have verified energy conservation or improved unit efficiency measures, so EPA is assuming no sources will do so during the three years covered by this ICR. Finally, EPA assumes that half of the opt in units will submit an optional allowance deduction form, which specifies the serial numbered allowances for deduction.

Total respondent burden and costs for annual compliance certification by opt in sources are an estimated 280 hours and $ 17,970, respectively. Exhibit 12 presents respondent burden and costs for annual reconciliation by opt in sources. 51 6.6.2. Agency Burden/ Cost Estimates for the Opt in Program In 2007 2009, the Agency's burden includes; processing opt in applications, processing quarterly emissions reports ( which is included in Exhibit 8), and processing annual reconciliation reports. The Agency's total annual estimated burden and cost related to the opt in program are 24 hours and $ 1,312, respectively. Exhibit 13 presents the Agency's burden and costs for opt in program. 52 EXHIBIT 11 RESPONDENT BURDEN/ COST ESTIMATES FOR OPT IN PERMIT APPLICATIONS Tasks Burden Hours per Occurrence Cost per Occurrencea Total Burden ( hours) Total Cost Select a designated representativeb Managerial Technical Prepare opt in permit applicationb Managerial Technical Prepare thermal energy compliance planc Managerial Technical Complete withdrawal notificationd Managerial Technical 20 7 20 85 15 55 2 3 $ 1,688.60 $ 406.00 $ 1,688.60 $ 4,930.00 $ 1,266.45 $ 3,190.00 $ 168.86 $ 174.00 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 TOTAL 0 $ 0 a 2006 dollars. b Assumes no opt in sources submit applications. c Assumes no sources file a thermal energy compliance plan. d Assumes that sources that have made the investment to opt in will not withdraw. 53 EXHIBIT 12 ANNUAL RESPONDENT BURDEN/ COST ESTIMATES FOR OPT IN ANNUAL COMPLIANCE CERTIFICATION Tasks Burden Hours Per Occurrence Cost Per Occurrencea Total Burden ( Hours) Total Cost Opt in Utilization formb Managerial Technical 2 16 $ 186.86 $ 928.00 16 128 $ 1,494.88 $ 7,424.00 Thermal energy compliance report ( shutdown opt in sources and replacement units) c Managerial Technical 10 21 $ 844.30 $ 1,218.00 40 84 $ 3,377.20 $ 4,872.00 Allowance deduction form ( optional) d Managerial Technical Energy conservation/ Improved unit efficiency confirmation reporte Managerial Technical Excess emissions penalty paymente Managerial Technical 1 2 5 25 4 5 $ 84.43 $ 116.00 $ 422.15 $ 1450.00 $ 337.72 $ 290.00 4 8 0 0 0 0 $ 337.72 $ 464.00 0 0 0 0 TOTAL 280 $ 17,969.80 a 2006 dollars. b Assumes 3 opt in sources and 8 opt in units. c Assumes 4 sources file reports. d Assumes 4 opt in units submit allowance deduction forms. e EPA assumes no sources will claim savings from energy conservation or improved unit efficiency or have excess emissions. 54 EXHIBIT 13 ANNUAL AGENCY BURDEN/ COSTS FOR THE OPT IN PROGRAM Task Burden Hours per Occurrence Cost per Occurrencea Total Burden Hours Total Costs Review certificates of representation and record informationb 1 $ 54.65 0 $ 0 Review permit application, issue proposed and final permit, and assign allowancesb 80 $ 4,372.00 0 $ 0 Review and process annual reconciliation submissionsc 2 $ 109.30 16 $ 874.40 Deduct allowances and send reconciliation reportsc 1 $ 54.65 8 $ 437.20 Total 24 $ 1,311.60 a 2006 dollars. b Assumes no opt in sources submit a permit application. c Assumes 3 opt in sources and 8 opt in units each year.

6.7 NOX Permitting This section estimates the paperwork burden and cost of renewing and revising Phase II NOX compliance plans.

6.7.1 Estimate of Respondent Burden and Costs Exhibit 14 presents the burden and costs to applicants for preparing and submitting NOX Compliance Plan renewal applications and revising NOX compliance plans. Permits, including NOX Compliance Plans for units affected for NOX, must be renewed every five years. Therefore, EPA assumes 20% of all units affected for NOX ( i. e., 200 units) will submit NOX Compliance Plan renewal applications each year. Based on the past two years of the program, EPA expects to receive 27 NOX compliance plan revisions each year.

For each compliance plan renewal, EPA estimates that the applicant will require about 5 hours, while compliance plan revisions will require about 10 hours. The total respondent burden for NOX permitting, as shown in Exhibit 14, is estimated to be 1,270 hours each year. The costs associated with NOX permitting are estimated at $ 87,800 per year. 55 EXHIBIT 14 RESPONDENT BURDEN/ COST ESTIMATES FOR NOX PERMITTING Tasks Burden Hours per Occurrence Cost per Occurrencea Total Burden Hours Total Cost Prepare NOX Compliance Plan renewal applicationsb Managerial Technical 2 3 $ 168.86 $ 174.00 400 600 $ 33,772.00 $ 34,800.00 Revise NOX Compliance Plan ( e. g., emissions averaging plans) c Managerial Technical 5 5 $ 422.15 $ 290.00 135 135 $ 11,398.05 $ 7,830.00 Total 1,270 $ 87,800.05 a 2006 dollars. b Assumes 200 units ( 20% of all NOX affected units) submit NOX compliance plan renewals each year. c Assumes 27 respondents revise emissions averaging plans each year.

6.7.2. Estimate of Agency/ Permitting Authority Burden and Costs for NOX Exhibit 15 presents the paperwork burden and costs to EPA for NOX permitting. The total annual burden and cost for renewing and revising NOX compliance plans is estimated at 127 hours and $ 6,942, respectively.

The tasks involved in reviewing applications will include reviewing forms for completeness and entering the revised data from the plans into a NOX compliance database. 56 EXHIBIT 15 AGENCY BURDEN/ COST ESTIMATES FOR NOX PERMITTING Tasks Burden Hours Per Occurrence Cost Per Occurrencea Total Burden Hours Total Cost Renew NOX compliance plansb 0.5 $ 27.33 100 $ 5,466.00 Revise NOX compliance plansc 1 $ 54.65 27 $ 1,475.55 Total 127 $ 6,941.55 a 2006 dollars. b Assumes 200 units ( 20% of all NOX affected units) submit NOX compliance plan renewals each year. c Assumes 27 respondents revise emissions averaging plans each year.

6.8 Summary of Burden Hours and Costs Exhibit 16 summarizes the annual aggregate burden and cost estimates to respondents for the period of July 1, 2006 through June 30, 2009 for collections associated with allowance transfers, energy conservation and renewable energy allowances, permits, emissions reporting, auctions, the opt in program, and NOX permitting. Exhibit 17 summarizes the aggregate burden and cost estimates to EPA and permitting authorities 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 2003 from the last clearance was 1,600,807 hours. This ICR estimates the annual burden in 2007 will be 1,971,276 hours, which increases the burden by 370,469 hours. The reasons for this burden increase are explained below.

Most 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 decreased from 4,800 to 1,700. This changed the annual burden hours for allowance transfer activities from 10,640 to 5,885. 57 ° The annual number of conservation and renewable energy reserve applications dropped from 7 to 0, while the number of applicants using EPA's conservation verification protocol decreased from 1 to 0. These changes decreased the net burden from 418 to 0 hours.

° Permitting activities were estimated to require 15,410 burden hours in 2003. The estimated annual burden hours for permitting under this ICR are 13,531. This burden change reflects a decrease in the number of units submitting new and retired unit exemptions.

° Adjustments increased the annual average burden for monitoring and reporting activities from 1,564,000 hours in the previous ICR to approximately 1,950,000 hours. This reflects an increase in the respondent universe because of the number of new units that came on line in the last four years.

° The estimated number of sources applying to opt in to the Acid Rain Program was reduced from 1 to 0. This results in the estimated burden dropping from 388 hours in 2003 to 0 in the current collection.

° The burden for NOX permitting increased from 1,060 hours to 1,270 hours. This burden change reflects an increase in the number of NOX compliance plan revisions submitted each year, from 6 to 27.

While most of the change in burden is due to adjustments, there is a smaller burden reduction due to program changes.

° The burden for reporting annual compliance certification information decreased from 8,575 hours to 0 due to the elimination of the annual compliance certification reports and the change from unit level to facility or plant level compliance.