[Federal Register Volume 83, Number 22 (Thursday, February 1, 2018)]
[Notices]
[Pages 4718-4720]
[FR Doc No: 2018-01953]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82593; File No. SR-NYSEArca-2017-140]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a
Proposed Rule Change To List and Trade Shares of the Perth Mint
Physical Gold ETF Trust Pursuant to NYSE Arca Rule 8.201-E

January 26, 2018.

I. Introduction

    On December 11, 2017, NYSE Arca, Inc. (``NYSE Arca'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to list and trade shares (``Shares'') of the Perth
Mint Physical Gold ETF Trust (``Trust'') under NYSE Arca Equities Rule
8.201-E. The proposed rule change was published for comment in the
Federal Register on December 28, 2017.\3\ The Commission has not
received any comments on the proposed rule change. This order approves
the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 82372 (Dec. 21,
2017), 82 FR 61601 (``Notice'').
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II. The Description of the Proposed Rule Change \4\
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    \4\ A more detailed description of the Trust and the Shares, as
well as investment risks, Share creation procedures for authorized
participants, Share redemption procedures for authorized
participants and certain beneficial owners, NAV calculation,
availability of information and fees, among other things, is
included in the Registration Statement, infra note 5.
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    The Exchange proposes to list and trade the Shares under NYSE Arca
Equities Rule 8.201-E,\5\ which governs the listing and trading of
Commodity-Based Trust Shares on the Exchange.\6\ The Shares will
represent units of fractional undivided beneficial interest in and
ownership of the Trust. The Trust's primary objective will be to
provide investors with an opportunity to invest in gold through the
Shares, have the gold securely stored by Gold Corporation and, if
requested by an investor, deliver Physical Gold \7\ to such investor in
exchange for its Shares.\8\
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    \5\ On August 30, 2017, the Trust submitted to the Commission
its draft registration statement on Form S-1 (``Registration
Statement'') under the Securities Act of 1933 (15 U.S.C. 77a).
    \6\ A ``Commodity-Based Trust Share'' is a security (a) that is
issued by a trust that holds a specified commodity deposited with
the trust; (b) that is issued by such trust in a specified aggregate
minimum number in return for a deposit of a quantity of the
underlying commodity; and (c) that, when aggregated in the same
specified minimum number, may be redeemed at a holder's request by
such trust which will deliver to the redeeming holder the quantity
of the underlying commodity. See NYSE Arca Equities Rule
8.201(c)(1).
    \7\ ``Physical Gold'' is defined as London Bars and all gold
products without numismatic value and having a gold purity of at
least 99.5% (including coins, cast bars and minted bars).
    \8\ According to the Registration Statement, the Trust does not
trade in gold futures contracts on COMEX or on any other futures
exchange. Because the Trust does not trade in gold futures contracts
on any futures exchange, the Trust is not regulated by the CFTC
under the Commodity Exchange Act as a ``commodity pool,'' and is not
operated by a CFTC-regulated commodity pool operator. Investors in
the Trust do not receive the regulatory protections afforded to
investors in regulated commodity pools, nor may COMEX or any futures
exchange enforce its rules with respect to the Trust's activities.
In addition, investors in the Trust do not benefit from the
protections afforded to investors in gold futures contracts on
regulated futures exchanges.
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    The sponsors of the Trust will be Gold Corporation (``Custodial
Sponsor'') and Exchange Traded Concepts, LLC (``ETC'' or the
``Administrative Sponsor'' and, together with the Custodial Sponsor,
the ``Sponsors'') \9\ and Gold Corporation will also serve as custodian
of the Trust's gold bullion (in such capacity, ``Custodian'').\10\
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    \9\ Gold Corporation, doing business as the Perth Mint, is a
Western Australian Government owned statutory body corporate
established by the Gold Corporation Act 1987 (Western Australia).
ETC is an Oklahoma limited liability company majority owned by
Cottonwood ETF Holdings LLC. ETC is a registered investment adviser
and provides investment advisory services to domestic and
international equity and fixed income ETFs.
    \10\ As Custodian of the Trust's gold bullion, Gold Corporation
will be responsible for the safekeeping of the Trust's gold and
supplying inventory information to the Trustee and the Sponsors. The
Custodian will also be responsible for facilitating the transfer of
gold in and out of the Trust and facilitating the shipment of
Physical Gold to Delivery any beneficial owner (who is not an
authorized participant) who wishes to surrender Shares in exchange
for Physical Gold.
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III. Discussion and Commission Findings

    After careful review, the Commission finds that the Exchange's
proposed rule change to list and trade the Shares is consistent with
the Act and the rules and regulations thereunder applicable to a
national securities exchange.\11\ In particular, the Commission finds
that the proposal is consistent with Section 11A(a)(1)(C)(iii) of the
Act,\12\ which sets forth Congress' finding that it is in the public
interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for and transactions in securities. The last-sale price for
the Shares will be disseminated over the Consolidated Tape. There is a
considerable amount of information about gold and gold markets
available on public websites and through professional and subscription
services. Investors may obtain gold pricing information on a 24-hour
basis based on the spot price for an ounce of gold from various
financial information service providers.\13\
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    \11\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \12\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \13\ The Exchange states that Reuters and Bloomberg, for
example, provide at no charge on their websites delayed information
regarding the spot price of Gold and last sale prices of gold
futures, as well as information about news and developments in the
gold market. Reuters and Bloomberg also offer a professional service
to subscribers for a fee that provides information on gold prices
directly from market participants. Complete real-time data for gold
futures and options prices traded on the COMEX are available by
subscription from Reuters and Bloomberg. There are a variety of
other public websites providing information on gold, ranging from
those specializing in precious metals to sites maintained by major
newspapers. In addition, the LBMA Gold Price is publicly available
at no charge at www.lbma.org.uk. See Notice, supra note 3, 82 FR at
61605.
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    Additionally, the Commission finds that the proposed rule change is
consistent with Section 6(b)(5) of the Exchange Act,\14\ which
requires, among other things, that the Exchange's rules be designed to
prevent fraudulent and manipulative acts and practices, promote just
and equitable principles of trade, to remove impediments to and

perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
The Commission notes that the Exchange has surveillance-sharing
agreements with significant, regulated markets for trading futures on
gold. Specifically, according to the Exchange: (1) The most significant
gold futures exchanges in the U.S. is COMEX, a subsidiary of New York
Mercantile Exchange, Inc., and a subsidiary of the Chicago Mercantile
Exchange Group (``CME Group''); (2) ICE Futures US (``ICE'') also lists
gold futures; \15\ and (3) the CME Group and ICE are members of the
ISG,\16\ which will allow NYSE Arca to obtain surveillance information
from COMEX and ICE. Both COMEX and ICE are regulated by the U.S.
Commodity Futures Trading Commission (``CFTC'').\17\ The gold futures
market is of significant size and liquidity.\18\
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    \14\ 15 U.S.C. 78f(b)(5).
    \15\ See Notice, supra note 3, 82 FR at 61603.
    \16\ See id.
    \17\ See https://www.theice.com/futures-us/regulation (``ICE
Futures U.S. is a Designated Contract Market pursuant to the
Commodity Exchange Act and regulated by the CFTC.''); Securities
Exchange Act Release No. 68440 (December 14, 2012), 78 FR 75468,
75469 (December 20, 2012) (SR-NYSEArca-2012-28) (COMEX is regulated
by the CFTC).
    \18\ The Commission further notes that it has approved the
listing and trading of other Commodity-Based Trust Shares overlying
gold. See, e.g., Securities Exchange Act Release No. 81918 (October
23, 2017), 82 FR 49884 (October 27, 2017) (SR-NYSEArca-2017-98);
Securities Exchange Act Release No. 71378 (January 23, 2014), 79 FR
71378 (January 29, 2014) (SR-NYSEArca-2013-137); and Securities
Exchange Act Release No. 70195 (August 14, 2013, 2013), 78 FR 51239
(August 20, 2013) (SR-NYSEArca-2013-61).
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    The Commission believes that the proposed rule change is reasonably
designed to promote fair disclosure of information that may be
necessary to price the Shares appropriately. NYSE Arca Equities Rule
8.201(e)(2)(v) requires that an intraday indicative value (``IIV,''
which is referred to in the rule as the ``Indicative Trust Value'') be
calculated and disseminated at least every 15 seconds. The IIV will be
calculated based on the amount of gold held by the Trust and a price of
gold derived from updated bids and offers indicative of the spot price
of gold. The Exchange states that the IIV relating to the Shares will
be widely disseminated by one or more major market data vendors at
least every 15 seconds during the Core Trading Session.\19\ The NAV of
the Trust will be published by the Sponsor on each day that the NYSE
Arca is open for regular trading and will be posted on the Trust's
website.\20\ The Trust also will publish the following information on
their website: (1) The mid-point of the bid-ask price as of the close
of trading (``Bid/Ask Price''), and a calculation of the premium or
discount of such price against such NAV; (2) data in chart format
displaying the frequency distribution of discounts and premiums of the
Bid/Ask Price against the NAV, within appropriate ranges, for each of
the four previous calendar quarters; (3) the Trust's prospectus, as
well as the two most recent reports to stockholders; and (4) the last-
sale price of the Shares as traded in the U.S. market.\21\ In addition,
information regarding market price and trading volume of the Shares
will be continually available on a real-time basis throughout the day
on brokers' computer screens and other electronic services. Information
regarding the previous day's closing price and trading volume
information for the Shares will be published daily in the financial
section of newspapers.
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    \19\ See Notice, supra note 3, 82 FR at 61607.
    \20\ See id.
    \21\ See id. at 61606.
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    The Commission also believes that the proposal is reasonably
designed to prevent trading when a reasonable degree of transparency
cannot be assured. With respect to trading halts, the Exchange may
consider all relevant factors in exercising its discretion to halt or
suspend trading in the Shares. Trading on the Exchange in the Shares
may be halted because of market conditions or for reasons that, in the
view of the Exchange, make trading in the Shares inadvisable. These may
include: (1) The extent to which conditions in the underlying gold
market have caused disruptions and/or lack of trading, or (2) whether
other unusual conditions or circumstances detrimental to the
maintenance of a fair and orderly market are present. In addition,
trading in Shares will be subject to trading halts caused by
extraordinary market volatility pursuant to the Exchange's ``circuit
breaker'' rule.\22\ The Exchange will halt trading in the Shares if the
NAV of the Trust is not calculated or disseminated daily.\23\ The
Exchange may halt trading during the day in which an interruption
occurs to the dissemination of the IIV; if the interruption to the
dissemination of the IIV persists past the trading day in which it
occurs, the Exchange will halt trading no later than the beginning of
the trading day following the interruption.\24\
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    \22\ See id.
    \23\ See id.
    \24\ See id.
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    Additionally, the Commission notes that market makers in the Shares
will be subject to the requirements of NYSE Arca Equities Rule 8.201-
E(g), which are designed to allow the Exchange to ensure that they do
not use their positions to violate the requirements of Exchange rules
or applicable federal securities laws.\25\
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    \25\ Commentary .04 of NYSE Arca Equities Rule 6.3 requires that
an ETP Holder acting as a registered market maker in the Shares, and
its affiliates, establish, maintain and enforce written policies and
procedures reasonably designed to prevent the misuse of any material
nonpublic information with respect to such products, any components
of the related products, any physical asset or commodity underlying
the product, applicable currencies, underlying indexes, related
futures or options on futures, and any related derivative
instruments.
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    In support of this proposal, the Exchange has made the following
additional representations:
    (1) The Shares will be listed and traded on the Exchange pursuant
to the initial and continued listing criteria in NYSE Arca Equities
Rule 8.201-E.\26\
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    \26\ See id.
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    (2) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.\27\
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    \27\ See id.
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    (3) The Exchange deems the Shares to be equity securities.\28\
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    \28\ See id. The Commission notes that, as a result, trading of
the Shares will be subject to the Exchange's existing rules
governing the trading of equity securities.
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    (4) The Exchange also has a general policy prohibiting the
distribution of material, non-public information by its employees.\29\
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    \29\ See id. at 61607.
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    (5) Trading in the Shares will be subject to the existing trading
surveillances administered by the Exchange, as well as cross-market
surveillances administered by FINRA on behalf of the Exchange, which
are designed to detect violations of Exchange rules and applicable
federal securities laws, and that these procedures are adequate to
properly monitor Exchange trading of the Shares in all trading sessions
and to deter and detect violations of Exchange rules and federal
securities laws applicable to trading on the Exchange.\30\
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    \30\ See id. at 61606. FINRA conducts cross-market surveillances
on behalf of the Exchange pursuant to a regulatory services
agreement. The Exchange is responsible for FINRA's performance under
this regulatory services agreement. See id. at 61606, n.39.
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    (6) The Exchange or FINRA, on behalf of the Exchange, or both, will
communicate as needed regarding trading in the Shares with other
markets and other entities that are members of the ISG, and the
Exchange or FINRA, on behalf of the Exchange, or both, may obtain
trading information regarding trading in the Shares from such markets
and other entities. In addition, the

Exchange may obtain information regarding trading in the Shares from
markets and other entities that are members of ISG or with which the
Exchange has in place a comprehensive surveillance sharing
agreement.\31\
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    \31\ See id. at 61606.
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    (7) Prior to the commencement of trading, the Exchange will inform
its ETP Holders in an Information Bulletin of the special
characteristics and risks associated with trading the Shares.
Specifically, the Information Bulletin will discuss the following: (1)
The procedures for purchases and redemptions of Shares in Baskets
(including noting that Shares are not individually redeemable); (2)
NYSE Arca Rule 9.2-E(a), which imposes a duty of due diligence on its
ETP Holders to learn the essential facts relating to every customer
prior to trading the Shares; (3) how information regarding the IIV is
disseminated; (4) the requirement that ETP Holders deliver a prospectus
to investors purchasing newly issued Shares prior to or concurrently
with the confirmation of a transaction; (5) the possibility that
trading spreads and the resulting premium or discount on the Shares may
widen as a result of reduced liquidity of gold trading during the Core
and Late Trading Sessions after the close of the major world gold
markets; and (6) trading information.\32\
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    \32\ See id. at 61607.
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    (8) All statements and representations made in this filing
regarding (a) the description of the portfolio, (b) limitations on
portfolio holdings or reference assets, or (c) the applicability of
Exchange listing rules specified in this rule filing shall constitute
continued listing requirements for listing the Shares of the Trust on
the Exchange.\33\
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    \33\ See id. See also NYSE Arca Rule 8.201-E(e)(2)(vii).
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    (9) The issuer has represented to the Exchange that it will advise
the Exchange of any failure by the Trust to comply with the continued
listing requirements, and, pursuant to its obligations under Section
19(g)(1) of the Act, the Exchange will monitor for compliance with the
continued listing requirements. If the Trust is not in compliance with
the applicable listing requirements, the Exchange will commence
delisting procedures under NYSE Arca Rule 5.5(m).\34\
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    \34\ See Notice, supra note 3, at 61607.
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    This approval order is based on all of the Exchange's
representations--including those set forth above and in the Notice--and
the Exchange's description of the Trust.
    For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with Sections 6(b)(5) and 11A(a)(1)(C)(iii)
of the Act \35\ and the rules and regulations thereunder applicable to
a national securities exchange.
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    \35\ 15 U.S.C. 78f(b)(5) and 15 U.S.C. 78k-1(a)(1)(C)(iii),
respectively.
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Exchange Act,\36\ that the proposed rule change (SR-NYSEArca-2017-140),
be, and it hereby is, approved.
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    \36\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\37\
Robert W. Errett,
Deputy Secretary.
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    \37\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2018-01953 Filed 1-31-18; 8:45 am]
 BILLING CODE 8011-01-P


EPA has chosen to apply the same requirements to air carriers of all sizes. EPA has developed the ADWR to provide flexibility to all air carriers including small entities or small businesses. For example, where a maintenance frequency is not specified by the water tank manufacturer, air carriers can choose the combination of monitoring and disinfection and flushing that accommodates existing routine aircraft maintenance schedules. The ADWR allows air carriers with positive total coliform samples 72 hours to implement disinfection and flushing as corrective action or the alternative of 24 hours to collect repeat samples. It also allows air carriers additional time before corrective action is required if they prevent public access to the water by physically shutting off or disconnecting the water system or preventing the flow of water through the taps. The rule also permits air carriers to take only one routine sample (instead of two) for certain aircraft with a removable/portable water tank that is drained every day where the aircraft has only one tap.

5(d)	Collection Schedule

 The collection schedules for each rule are summarized below. Additional information may be obtained by consulting the individual rules for specific collection schedules.

                              Exhibit 5 Collection Schedule

 Rule
 Collection Commencement Year
 SWTR
 1991/1993 (depending on filtration status)
 TCR
 1991  -  coliform monitoring
 1994  -  sanitary surveys for CWSs, 1999 for NCWSs
 RTCR
 2016  -  coliform monitoring
 IESWTR
 2002  -  turbidity monitoring
 2002/2004 - sanitary surveys (depending on size and source type)
 FBRR
 2004  -  recordkeeping
 LT1ESWTR
 2005  -  turbidity monitoring
 LT2ESWTR
 2006  -  Cryptosporidium and E. coli monitoring first round (depends on system size; all sampling completed by 2011)

 2010  -  disinfection profiling (depends on system size)
 2012  -  reporting for compliance with new technologies
 2015  -  second round of Cryptosporidium and E. coli monitoring
 GWR
 2009  -  sanitary survey, triggered monitoring, corrective action plans, compliance monitoring
 ADWR
 April 2011  -  inventory data, sampling and O&M plan information
 October 2011  -  coliform sampling data, dates routine disinfection and flushing are performed

 6	ESTIMATING BURDEN AND COST OF COLLECTION

 This section estimates the burden and cost to PWSs, air carriers and primacy agencies for complying with drinking water information requirements associated with microbial contaminant rulemakings. These include the following:

       1) Surface Water Treatment Rule15
       2) Total Coliform Rule/Revised Total Coliform Rule
       3) Interim Enhanced Surface Water Treatment Rule
       4) Filter Backwash Recycling Rule
       5) Long Term 1 Enhanced Surface Water Treatment Rule
       6) Long Term 2 Enhanced Surface Water Treatment Rule
       7) Ground Water Rule
       8) Aircraft Drinking Water Rule

 This ICR updates the annual burdens and costs associated with these rulemakings for the three-year ICR period of September 1, 2015, through August 31, 2018. This section also discusses the assumptions used to estimate cost and burden and describes the change in annual burden, as compared with the current OMB annual burden inventory.

 EPA has refined some of the assumptions for calculating the burden and costs associated with implementing the drinking water regulations contained in this ICR in an effort to accurately characterize the burden and costs. For this update, many assumptions were revised based on program changes and well-documented changes in some data. To provide a comparable basis on which to calculate the requirements addressed by the Microbial Rules ICR, and to address inconsistencies, EPA applied uniform assumptions to all rules where applicable. The categories of assumptions are listed below.

          * A 2013 labor rate of $21.62 was obtained from the Bureau of Labor Statistics (BLS) for PWSs. An overhead rate of 60 percent was applied, resulting in an hourly rate of $34.59. For states, a 2013 labor rate of $28.50 was obtained from the BLS. An overhead rate of 60 percent was applied, resulting in an hourly rate of $45.60.
          * PWS inventory figures from the most recent frozen SDWIS database pull (October 2014).
          * Number of entry points per system -- data from the 2006 Community Water Systems Survey (CWSS).
          * Number of plants per system -- data from the 2006 CWSS.

 In addition, EPA has revised some of the estimates of burden for particular activities (e.g., sampling, developing reports) to reflect consultations with representatives of PWSs and states (see section 3(c)).

 15 Includes all rule components except disinfectant residual monitoring and associated activities, which are included in the DDBP/Chem/Rads Rules ICR.

6(a)	Respondent Burden

       6(a)(i) Burden to Public Water Systems

 The annual PWS burden for September 1, 2015, through August 31, 2018, is estimated to be approximately 12.0 million hours. Exhibit 6 shows the breakdown of the annual burden hours on a rule-specific basis. The annual air carrier burden for the same time period is 0.034 million hours (see Exhibit 7). Wherever possible, activity-level burden assumptions were carried forward from previous ICRs or were updated to reflect consultation results. However, if updated data were available (e.g., system inventories), the most recent data were used in burden calculations. Appendices B through H show the assumptions and detailed burden calculations for each rule. The following further describes the bases for the burden estimates for each rule.

       1) Surface Water Treatment Rule

 Activities associated with the SWTR account for 1.77 million annual burden hours per year. The assumptions used to calculate the SWTR burden are based largely on assumptions carried forward from the 2012 Microbial Rules ICR. This ICR includes burden estimates for all components of the SWTR except disinfectant residual monitoring and associated activities, which are included in the DDBP/Chem/Rads Rule ICR. For unfiltered systems, burden estimates include raw water sampling for coliform, on-site inspections, watershed management and raw water turbidity monitoring. The burden for filtered systems includes only finished water turbidity monitoring. Detailed burden and cost calculations for the SWTR are provided in Appendix B.

       2) Total Coliform Rule/Revised Total Coliform Rule

       Activities associated with the TCR and RTCR account for a burden of 4.79 million hours per year, and represent the sum of the TCR burden and the net change RTCR burden. Net change burden (i.e., incremental burden over the 1989 TCR) developed in the previously approved RTCR ICR for the period following the RTCR effective date of April 1, 2016, is being accounted for in this ICR.16 The 3-year period covered by this programmatic ICR includes approximately 3 years of burden for TCR activities and 2.5 years of net change burden for RTCR activities. Note that in order to account for the full burden related to RTCR, for modeling purposes, burden related to TCR is included for the full 3-year evaluation period.

TCR burden includes that incurred to conduct routine total coliform monitoring and repeat sampling for E. coli or fecal coliform. The assumptions used to calculate the TCR burden are based largely on assumptions carried forward from the 2012 Microbial Rules ICR.

RTCR net change burden (i.e., incremental burden over the 1989 TCR) includes that incurred to conduct routine monitoring, additional routine monitoring, and repeat monitoring; to perform Level 1 and Level 2 assessments; and to perform reporting and recordkeeping related to

16 The burden associated with the first 3 years of RTCR implementation was amended to the 2012 OMB-approved Microbial Rules ICR on January 23, 2014. However, text and supporting appendices related to the RTCR are included in the Microbial Rules ICR for the first time.

corrective actions. The assumptions used to calculate the net change RTCR burden are based largely on assumptions carried forward from the standalone RTCR ICR for the final rule. Note that net change burden related to RTCR PN has been removed from the RTCR standalone ICR and is accounted for under the PN Rule in the 2015 PWSS Programmatic ICR.

 Section 6(f)(i) describes the reasons for changes between the burden reported in the 2012 Microbial Rules ICR and this ICR. TCR reporting and recordkeeping burden is provided in Appendix C1. RTCR net change reporting and recordkeeping burden (i.e., incremental burden over the 1989 TCR) is provided in Appendix C2. Since there are ongoing reporting and recordkeeping requirements under the 1989 TCR, Appendix C2 also provides the additional TCR burden calculations to calculate the net change in the reporting and recordkeeping burden for PWSs to comply with the RTCR, and are shown for informational purposes only.

       1) Interim Enhanced Surface Water Treatment Rule

 Activities associated with the IESWTR account for a burden of 4.32 million hours per year. Included in this burden are individual filter turbidity monitoring, turbidity exceptions reporting, and conducting individual filter assessments (IFAs). The assumptions used to calculate the IESWTR burden are based largely on the assumptions carried forward from the 2012 Microbial Rules ICR. Detailed information about assumptions, burden, and calculations are provided in Appendix D.

       2) Filter Backwash Recycling Rule

 No burden is estimated for PWSs for this rule. Currently, the rule requires PWSs to maintain records on recycle flow. The burden associated with this recordkeeping is assumed to be negligible.

       3) Long Term 1 Enhanced Surface Water Treatment Rule

 Activities associated with the LT1ESWTR account for a burden of 0.13 million hours per year. The burden estimates for PWSs include turbidity exceptions reporting and turbidity monitoring. The assumptions used to calculate the LT1ESWTR burden are based largely on the assumptions carried forward from the 2012 Microbial Rules ICR. Detailed information about assumptions, burden, and calculations are provided in Appendix E.

       4) Long Term 2 Enhanced Surface Water Treatment Rule

 Activities associated with the LT2ESWTR account for a burden of 0.14 million hours per year. The burden estimates include reporting associated with demonstrating compliance with installed treatment. PWS burden estimates also account for some of the burden associated with developing disinfection profiles and benchmarks. The initial round of monitoring for E. coli and/or Cryptosporidium was completed during a previous ICR period. The second round of monitoring will take place during this ICR period. PWSs conducting monitoring are also expected to complete a sampling plan and bin recalculation.

 Appendix F summarizes the assumptions used to calculate the LT2ESWTR burden and provides the detailed burden and cost calculations.

       5) Ground Water Rule

       Activities associated with the GWR account for a burden of 0.86 million hours per year.
 For ground water systems providing 4-log treatment of viruses, the burden estimates include compliance monitoring to demonstrate treatment effectiveness and associated reporting, including reports of disinfection failure. In addition, burden estimates for developing corrective action plans are included. For ground water systems that do not provide 4-log treatment of viruses, PWS burden estimates also account for burden associated with conducting triggered source water monitoring if the system tests positive for total coliform in the distribution system under the TCR. PWS burden also includes the burden associated with sanitary surveys.

 Appendix G summarizes the assumptions used to calculate the GWR burden and provides the detailed burden and cost calculations.

       6) Aircraft Drinking Water Rule

 Activities associated with the ADWR account for an air carrier burden of 0.034 million hours per year. The assumptions used to calculate the ADWR burden are based largely on assumptions carried forward from the standalone ADWR ICR for the final rule, which was incorporated into the 2012 Microbial Rules ICR. Air carrier burden includes sampling, reporting associated with sampling and O&M activities, self-inspection, and public notice.

 Appendix H summarizes the assumptions used to calculate the ADWR burden and provides the detailed burden and cost calculations.

       6(a)(ii) Burden to Primacy Agencies

 The annual burden for primacy agencies for September 1, 2015, through August 31, 2018, is estimated to be approximately 2.62 million hours. Exhibit 8 shows the annual burden hours on a rule-specific basis. Many other primacy agency activities, such as compliance assurance and data management, cannot be divided among specific rules and are included in the PWSS Program ICR as general primacy activities. The bases for burden estimates included in this ICR are detailed below.

       1) Surface Water Treatment Rule

 The annual state burden for the SWTR is expected to be 0.26 million hours. All of this burden is associated with review of finished water turbidity monitoring results. Estimates for primacy agency burden for the SWTR are based on assumptions carried forward from the 2012 Microbial Rules ICR. Detailed calculations for burden and cost are shown in Appendix B.

       2) Total Coliform Rule/Revised Total Coliform Rule

      Activities associated with the TCR/RTCR account for a burden of 0.45 million hours per year, and represent the sum of the TCR burden and the net change RTCR burden. Net change burden (i.e., incremental burden over the 1989 TCR) developed in the previously approved RTCR ICR for the period following the RTCR effective date of April 1, 2016, is being accounted for in this programmatic ICR17. The 3-year period covered by this programmatic ICR includes approximately 3 years of burden for TCR activities and 2.5 years of net change burden for RTCR activities. Note that in order to account for the full burden related to RTCR, for modeling purposes, burden related to TCR is included for the full 3-year evaluation period.

 TCR burden includes monitoring TCR-related activities such as reviewing routine coliform reports, E. coli and fecal coliform reports18, and additional routine sampling reports. The burden for sanitary surveys for ground water systems is addressed under the GWR (see Appendix G). Sanitary survey burden for surface water systems is included under the IESWTR. Estimates for primacy agency burden for the TCR are based on assumptions carried forward from the 2012 Microbial Rules ICR.

      RTCR net change burden (i.e., incremental burden over the 1989 TCR) includes responding to positive sample results; reviewing completed assessment forms required to be filed by PWSs;  consulting with PWSs about their assessment form; and reviewing and coordinating with PWSs to determine the appropriate corrective action to be implemented and providing consultation. States must also submit information to SDWIS to assist both EPA and states in tracking PWS compliance. The assumptions used to calculate the net change RTCR burden are based largely on assumptions carried forward from the standalone RTCR ICR for the final rule. Note that net change burden related to RTCR PN has been removed from the RTCR standalone ICR and is accounted for under the PN Rule in the 2015 PWSS Programmatic ICR.

 Section 6(f)(i) describes the reasons for changes between the burden reported in the 2012 Microbial Rules ICR and this ICR. TCR reporting and recordkeeping burden is provided in Appendix C1. RTCR net change reporting and recordkeeping burden (i.e., incremental burden over the 1989 TCR) is provided in Appendix C2. Since there are ongoing reporting and recordkeeping requirements under the 1989 TCR, Appendix C2 also provides the additional TCR burden calculations to calculate the net change in the reporting and recordkeeping burden for states to comply with the RTCR, and are shown for informational purposes only.

17 The burden associated with the first 3 years of RTCR implementation was amended to the 2012 OMB-approved Microbial Rules ICR on January 23, 2014. However, text and supporting appendices related to the RTCR are included in the Microbial Rules ICR for the first time.

 18 Once the RTCR is fully implemented, systems will only conduct coliform and E. coli monitoring.

       1) Interim Enhanced Surface Water Treatment Rule

 Primacy agencies are expected to expend 0.96 million annual burden hours implementing requirements of the IESWTR. The assumptions used to calculate the IESWTR burden are based largely on assumptions carried forward from the 2012 Microbial Rules ICR. The burden includes estimates for review of turbidity monitoring results and exceptions reports. Additionally, states conduct CPEs as necessary and sanitary surveys for all surface water systems. Detailed cost and burden calculations are included in Appendix D.

       2) Filter Backwash Recycling Rule

 No burden is estimated for states for this rule. The burden associated with the recordkeeping requirements in this rule is assumed to be negligible.

       3) Long Term 1 Enhanced Surface Water Treatment Rule

 The annual state burden for the LT1ESWTR is expected to be 0.12 million hours. The assumptions used to calculate the LT1ESWTR burden are based largely on assumptions carried forward from the 2012 Microbial Rules ICR. The burden includes estimates for compliance tracking and recordkeeping of turbidity monitoring for small systems, and review of turbidity monitoring and turbidity exceptions reports. Additionally, states conduct turbidity exceptions reporting, which includes CPEs and annual exception reports for systems serving 10,000 or fewer people. Detailed calculations for burden and cost are shown in Appendix E.

       4) Long Term 2 Enhanced Surface Water Treatment Rule

 The annual state burden for the LT2ESWTR is expected to be 0.10 million hours. The assumptions used to calculate the LT2ESWTR burden are based largely on assumptions carried forward from the 2012 Microbial Rules ICR. State burden includes reviewing monitoring results and assisting with and reviewing bin classifications. States will also review disinfection profiles and benchmarks for systems that significantly change their disinfection practices.

 Appendix F summarizes the assumptions used to calculate the LT2ESWTR burden and provides the detailed burden and cost calculations.

       5) Ground Water Rule

 The annual state burden for the GWR is expected to be 0.73 million hours. The assumptions used to calculate the GWR burden are based largely on assumptions carried forward from the standalone GWR ICR for the final rule, which was incorporated into the 2012 Microbial Rules ICR. The burden includes those activities associated with performing sanitary surveys, as well as burden to review initial compliance monitoring notification and compliance monitoring reports submitted by PWSs. In addition, states will ensure PWSs are complying with treatment technique requirements and any associated reporting requirements. For ground water systems that do not provide 4-log treatment of viruses, state burden estimates also account for review of triggered source water monitoring results. Lastly, the burden includes annual administrative activities such as recordkeeping, staff training, and technical assistance to PWSs. Appendix G summarizes the assumptions used to calculate the GWR burden and provides the detailed burden and cost calculations.

       6) Aircraft Drinking Water Rule

 EPA is the primacy agency for the ADWR, and has direct oversight for that rule. This burden is captured in the 206.4 regional EPA FTE included in the PWSS Program ICR.

6(b)	Respondent Costs

       6(b)(i) Cost to Public Water Systems

 Exhibit 6 shows the annual costs for PWSs over the three-year ICR period. Annual costs are estimated at approximately $522.8 million, which consists of $416.0 million in labor costs,
 $84.8 million in O&M costs, and $22.0 million in capital costs.

 Exhibit 7 shows the annual costs for air carriers over the three-year ICR period. Annual costs are estimated at approximately $4.2 million, which consists of $0.96 million in labor costs, $3.2 million in O&M costs, and $0.003 million in capital costs.

 PWS labor costs are based on the number of burden hours times the average hourly wage rate, including overhead. The average hourly wage rate for PWSs is the rate quoted by the BLS for Standard Occupational Classification (SOC) Code 51-8031, "Local Government -- Water and Liquid Waste Treatment Plant and System Operators." The quoted rate was $21.62 in 2013 dollars (see http://www.bls.gov/oes/2013/may/oes518031.htm). In addition, 60 percent overhead was assumed, bringing the loaded rate to $34.59 in 2013 dollars. For air carriers, four labor rates are used and are all loaded by approximately 50 percent. All rates are from the BLS in 2013 dollars (see Appendix H for SOC codes for each occupation). The first labor rate is for "Transportation, Storage, and Distribution Managers" at a loaded rate of $65.40. The second labor rate is for "Cleaners of Vehicles and Equipment" at a loaded rate of $16.48. Labor rates for "Transportation Inspectors" and "Inspectors, Testers, Sorters, Samplers, and Weighers" were also used at loaded rates of $48.95 and $27.14, respectively.

 In addition to the labor costs, there are O&M costs associated with the SWTR, TCR/RTCR, IESWTR, LT1ESWTR, LT2ESWTR, GWR and ADWR.
          * SWTR O&M costs reflect non-labor costs associated with coliform analyses (unfiltered systems) and turbidity analyses (unfiltered and filtered systems). Coliform analysis O&M costs are based on analysis costs as listed in the GWR Economic Analysis. Turbidity analysis O&M costs are based on vendor quotes regarding calibration materials needed to perform turbidity analyses.
          * TCR O&M costs reflect non-labor costs associated with coliform and E. coli analysis.
          * RTCR O&M costs reflect net change non-labor costs associated with coliform analysis.
          * IESWTR O&M costs reflect non-labor costs associated with turbidity analysis for individual filters. For the IESWTR, turbidity analysis costs are based on O&M cost equations for operating an integrated supervisory control and data acquisition (SCADA) system. These cost equations are carried forward from the IESWTR Regulatory Impact Analysis (RIA).
          * LT1ESWTR O&M costs reflect non-labor costs associated with turbidity analysis for individual filters.
          * LT2ESWTR O&M costs reflect non-labor costs associated with Cryptosporidium and E. coli laboratory analysis.
          * GWR O&M costs reflect non-labor costs associated with compliance (disinfection) monitoring (maintenance costs, monthly reagents, charts and recorder pens) and E. coli analysis materials costs from the GWR Economic Analysis.

 Additionally, there are capital costs associated with SWTR, IESWTR, LT1ESWTR, GWR, and ADWR.
          * SWTR, IESWTR and LT1ESWTR include capital costs for turbidity monitoring equipment. For these rules, capital costs are estimated based on vendor estimates and costing equations for in-line and bench-top turbidimeters, or SCADA systems needed to comply with turbidity monitoring requirements. Capital costs are distributed evenly across the replacement period for turbidity analysis equipment (estimated to be 7 years).
          * GWR includes capital costs for chlorine monitoring equipment such as chlorine analyzer, power cord and chart recorder).
          * ADWR includes a capital cost for refrigerators purchased by air carriers, which is distributed evenly across the replacement period for the equipment.

 Further detail on the O&M and capital costs for the SWTR, TCR/RTCR, IESWTR, LT1ESWTR, LT2ESWTR, GWR and ADWR can be found in Appendices B, C1/C2, D, E, F, G and H, respectively.

       6(b)(ii) Cost to Primacy Agencies

       Exhibit 8 shows that the annual costs to primacy agencies are estimated at approximately
 $125.6 million. All costs incurred by primacy agencies are labor costs. Labor costs are based on the number of burden hours times the average hourly wage rate, including overhead. Labor rates

 in 2013 dollars are used and are loaded with a 60 percent overhead factor. A loaded labor rate of
 $45.60 per hour in 2013 dollars was used for state labor. The labor costs are based on the BLS SOC Code 19-2041, "State Government - Environmental Scientists and Specialists, Including Health," an average FTE cost of $94,848, including overhead, which equates to approximately
 $45.60 per hour.19 In addition, another labor rate was used for states conducting sanitary surveys and reviewing compliance monitoring results for the GWR. Loaded, this rate comes to $59.71 per hour.

       There are no O&M or capital costs for primacy agencies under this ICR.

                                      Exhibit 6
                      Annual PWS Burden and Cost September 1, 2015  -  August 31, 2018

    Activity

   Annual Burden Hours
                                     Cost

  Annual Responses

                            Annual Labor Cost ($K)

    Annual O&M Cost ($K)

                           Annual   Capital Cost ($K)

                              Total Annual Cost ($K)

SWTR
                                                                      1,773,186
                                                                        $61,338
                                                                         $4,640
                                                                         $2,318
                                                                        $68,297
                                                                     17,737,514
TCR/RTCR
                                                                      4,792,580
                                                                       $165,785
                                                                        $42,127
                                                                            N/A
                                                                       $207,912
                                                                      3,673,598
IESWTR
                                                                      4,322,149
                                                                       $149,512
                                                                        $18,467
                                                                        $17,228
                                                                       $185,207
                                                                      3,818,305
LT1ESWTR
                                                                        133,839
                                                                         $4,630
                                                                         $2,990
                                                                         $2,343
                                                                         $9,963
                                                                        311,346
LT2ESWTR
                                                                        144,525
                                                                         $4,904
                                                                         $9,764
                                                                            N/A
                                                                        $14,668
                                                                         72,023
GWR
                                                                        860,961
                                                                        $29,782
                                                                         $6,843
                                                                            $89
                                                                        $36,714
                                                                      1,460,940
TOTAL
                                                                     12,027,240
                                                                       $415,950
                                                                        $84,830
                                                                        $21,979
                                                                       $522,759
                                                                     27,073,725
 Note: Detail may not add exactly to totals due to rounding.

                                      Exhibit 7
                      Annual Air Carrier Burden and Cost September 1, 2015  -  August 31, 2018

    Activity
                              Annual Burden Hours
                                     Cost

  Annual Responses

                             Annual Labor Cost ($K)

                     Annual O&M  ($K)($K) ($K)  Cost ($K)
                                    Annual
                               Capital Cost ($K)
                            Total Annual    Cost ($K)

ADWR
                                                                         34,340
                                                                           $956
                                                                         $3,205
                                                                             $3
                                                                         $4,163
                                                                        133,803
TOTAL
                                                                         34,340
                                                                           $956
                                                                         $3,205
                                                                             $3
                                                                         $4,163
                                                                        133,803

 19 According to the ICR Handbook, an employee works an average of 2,080 hours in one year.

                                      Exhibit 8
                    Annual Primacy Agency Burden and Cost September 1, 2015  -  August 31, 2018

                                   Activity
                              Annual Burden Hours
                                     Cost

 Annual Responses

                           Annual Labor    Cost ($K)

  Annual O&M    Cost ($K)

                          Annual    Capital Cost ($K)

                            Total Annual Cost ($K)

SWTR
                                                                        264,421
                                                                        $12,058
                                                                            N/A
     N/A
                                                                        $12,058
                                                                         75,100
TCR/RTCR
                                                                        448,931
                                                                        $20,477
                                                                            N/A
     N/A
                                                                        $20,477
                                                                      1,797,380
IESWTR
                                                                        964,787
                                                                        $43,994
                                                                            N/A
     N/A
                                                                        $43,994
                                                                         71,283
LT1ESWTR
                                                                        115,789
                                                                         $5,280
                                                                            N/A
     N/A
                                                                         $5,280
                                                                         64,830
LT2ESWTR
                                                                        100,317
                                                                         $4,574
                                                                            N/A
     N/A
                                                                         $4,574
                                                                            217
GWR
                                                                        727,772
                                                                        $39,201
                                                                            N/A
     N/A
                                                                        $39,201
                                                                         32,952
TOTAL
    2,622,018
    $125,585
                                                                            N/A
                                                                            N/A
     $125,585
      2,041,762
 Note: Detail may not add exactly to totals due to rounding.

6(c)	Agency Burden and Costs

 Burden and costs to the federal government are incurred by EPA's drinking water program at Headquarters and EPA Regions to assist primacy agencies in implementing drinking water regulations. EPA burden and costs for on-going general activities for all EPA drinking water regulations are accounted for under the PWSS Program ICR. Burden and costs included in the PWSS Program ICR cover all cross-cutting (non-rule specific) regulatory activities associated with compliance tracking, regulatory enforcement, and rule development activities. There are no rule-specific activities expected for EPA under any of the rules covered by this ICR, except for EPA's oversight of air carriers for the ADWR. EPA's burden under the ADWR is shown for informational purposes in Appendix H; however, this burden is not included in the total burden for the ADWR. As explained above and in section 5(a), EPA ADWR burden is accounted for in the PWSS Program ICR.

6(d)	Estimating Respondent Universe and Total Burden and Costs

 Respondents for this ICR include PWSs, air carriers and primacy agencies. The number of PWS respondents is 149,765,20 the number of active PWSs. All PWSs are subject to the TCR and RTCR but are not necessarily subject to each of the other information collection requirements contained in this ICR. Each rule associated with this ICR identifies the types of PWSs that are subject to that particular requirement. The numbers, by type of PWSs affected for each rule, are identified in the appendices. The number of air carrier respondents is 42. Note that air carriers are respondents for the ADWR only.

 20 Source: SDWIS/FED Data from October 2014.

 In addition to the PWS and air carrier respondents, this ICR assumes 57 primacy agencies (50 states plus the District of Columbia, U.S. territories, and Navajo Nation).21 Therefore, the total number of respondents is 149,864. The total costs and burden for these respondents are summarized in Exhibits 6, 7, and 8.

6(e)	Bottom Line Burden Hours and Costs

 The bottom line burden hours and costs for this ICR are presented in Exhibit 9. The total annual respondent burden associated with this ICR, which includes burden for PWSs, air carriers and primacy agencies, is estimated to be approximately 14.7 million hours. The corresponding total annual respondent costs are estimated to be $652.5 million. The annual capital and O&M costs are approximately $110.0 million.

 21 For several of these entities, primacy activities are actually implemented by EPA regional offices. However, as a simplifying assumption, they are included with the states for respondent calculations under this ICR.

                                      Exhibit 9
                    Bottom Line Annual Burden and Cost September 1, 2015  -  August 31, 2018

Annual Number of Respondents
         149,864
 (=)

Existing PWSs

         149,765
 (+)

                                                                             42
 (+)
Existing Air Carriers

                                                                             57

Primacy agencies
Total Annual Responses
       29,249,289
 (=)

PWS responses (see Exhibit 6)

        27,073,725
 (+)

         133,803
 (+)
Air Carrier responses (see Exhibit 7)

        2,041,762

Primacy agency responses (see Exhibit 8)
Number of Responses per
                                                                          195.2
 (=)

Total annual responses from above
Respondent
        29,249,289
 (/)

         149,864

Total number of respondents from above
Total Annual Respondent Hours
       14,683,598
 (=)

PWS hours (see Exhibit 6)

        12,027,240
 (+)

                                                                         34,340
 (+)
Air Carrier hours (see Exhibit 7)

        2,622,018

Primacy agency hours (see Exhibit 8)
Hours per Response
                                                                           0.50
 (=)

Total annual respondent hours from above

        14,683,598
 (/)

        29,249,289

Total annual responses from above
Annual O&M and Capital Cost
        $110,017
 (=)

Total  PWS O&M costs (see Exhibit 6)
($K)1
         $84,830
 (+)

         $21,979
 (+)
Total PWS capital costs (see Exhibit 6)

                                                                         $3,205
 (+)
Total Air Carrier O&M costs (see Exhibit 7)

                                                                             $3

Total Air Carrier capital costs (see Exhibit 7)
Total Annual Respondent Cost ($K)
        $652,507
 (=)

For PWSs (see Exhibit 6)

         $522,759
 (+)

                                                                         $4,163
 (+)
For Air Carriers (see Exhibit 7)

         $125,585

For primacy agencies (see Exhibit 8)
Total Annual Hours (resp. plus
       14,683,598
 (=)

Total annual respondent hours from above
Agency)
        14,683,598
 (+)

                                                                              0

Total EPA hours
Total Annual Cost ($K) (resp. plus
        $652,507
 (=)

Total annual respondent cost from above
Agency)
         $652,507
 (+)

                                                                             $0

Total EPA cost
  Note: Detail may not add exactly to totals due to rounding.
  1No Primacy Agency capital or O&M costs are incurred, see Exhibit 8.

6(f)	Reasons for Change in Burden

 This section presents the change in burden and explains the reasons for the change in burden. The discussion is divided into two parts:

          * Section 6(f)(i) summarizes the burden adjustments made (by addition of new rules) since the 2012 Microbial Rules ICR (see Exhibit 11).

          * Section 6(f)(ii) summarizes burden adjustments to each rule since the 2012 Microbial Rules ICR (see Exhibits 12 through 14).

 Exhibit 10 summarizes how each of these changes affects the overall burden inventory for the Microbial Rules ICR.

                                      Exhibit 10
             Summary of Changes in Annual Burden (Includes PWS, Air Carrier and Primacy Agency Burden)

     Type of Change
   Burden (hours)
  Running Total
                                    Comment
Burden Estimated in the 2012 Microbial Rules ICR

     12,930,414

    12,930,414
This burden serves as the baseline2 for the 2015 Microbial Rules ICR.
Restructuring
Adjustments - see Section 6(f)(i)

                                    839,526

    13,769,940
Burden for RTCR is now included in this ICR3.
Other Adjustments to
Burden - see Section 6(f)(ii)

                                    913,659

    14,683,598
Burden for which EPA seeks approval in this ICR.
 Notes:
(1) Detail may not add exactly to totals due to rounding.
(2) Burden requested in the 2012 Microbial Rules ICR (12,930,414 hours is used as a starting point for the 2015 Microbial Rules ICR.
(3) Burden associated with the first 3 years of RTCR implementation (839,526 hours) was amended to the 2012 OMB-approved Microbial Rules ICR on January 23, 2014.

 6(f)(i)  Restructuring Adjustments

 Restructuring adjustments have been made to consolidate the burden for the regulation being incorporated into the Microbial Rules ICR. These adjustments are discussed below and summarized in Exhibit 11.

          * Net change burden associated with the RTCR. The final RTCR was promulgated February 13, 2013, and the net change burden associated with the first 3 years post rule promulgation (839,526 hours) was amended to the 2012 OMB-approved Microbial Rules ICR on January 23, 2014. This represents the RTCR net change burden (i.e., incremental over the 1989 TCR) from the 2013 OMB-approved standalone RTCR ICR to perform implementation-related activities.

                                      Exhibit 11
             Restructuring Adjustments to the Annual Burden Inventory for the Microbial Rules ICR
                   (Includes PWS, Air Carrier and Primacy Agency Burden)

    Action
   Annual Burden Hours
                               Brief Explanation

N/A

12,930,414
Inventory for the 2012 Microbial Rules ICR2 carried forward as the baseline for 2015 Microbial Rules ICR (includes PWS, state, and air carrier burden).

Add

839,526
Microbial Rules ICR amended with RTCR net change burden3 on January 23, 2014.

Total

13,769,940
Current opening inventory for the 2015 Microbial Rules ICR (based on current burden inventories.)
 Notes:
(1) Detail may not add exactly to totals due to rounding.
(2)  Burden requested in the 2012 Microbial Rules ICR (12,930,414 hours is used as a starting point for the 2015 Microbial Rules ICR.
(3) This represents the RTCR net change burden (i.e., incremental over the 1989 TCR) from the 2013 OMB-approved standalone ICR to perform implementation-related activities.

6(f)(ii) Other Burden Adjustments

 Changes in calculated burden are a result of updating relevant baseline information for each rule with the most current and accurate information available (e.g., PWS inventories) and updating to 2013 labor rates. Where appropriate, estimated violation, waiver, and other associated rates have also been updated to reflect current information on rule compliance.
 Burden also may have changed as a result of consultation with water industry representatives and due to changes in rule requirements.

 Exhibits 12-14 summarize reasons for these changes and quantify the changes by rule. Burden adjustments associated with PWS activities resulted in a burden increase of 943,903 hours and are detailed in Exhibit 12. Burden adjustments associated with air carrier activities resulted in a burden decrease of 747 hours and are detailed in Exhibit 13. Burden adjustments for primacy agencies result in a decrease of 29,498 hours per year, as shown in Exhibit 14.

                                      Exhibit 12
                Adjustments to PWS Burden from Previous ICR Estimates

    Activity
                      2012 Annual Burden Estimate (Hours)
                              2015 Annual   Burden
                               Estimate (Hours)
                                Change in Burden

         Reason for Change in Burden
SWTR
                                                                      1,783,619
                                                                      1,773,186
                                                                       (10,433)
The change in burden is attributable to the use of updated system inventories. Note that the overall system inventory has decreased since the previous ICR.

TCR/RTCR2
                                                                      4,256,101
                                                                      4,792,580
                                                                        536,478
For purposes of this Microbial Rules ICR, the total burden associated with the TCR/RTCR is equal to the sum of the TCR burden over three years plus the net change in RTCR burden over 2.5 years. This assumption was made to ensure the model accurately reflected the full burden for TCR/RTCR.

The change in TCR burden is attributed to the adjustments made in the modeling inputs to account for updated PWS inventory and total coliform MCL violations reported to SDWIS. This information was obtained from an October 2014 SDWIS data pull. In addition, the increase in the RTCR burden is attributed to the rule requirements such as conducting routine, additional routine, and repeat monitoring; Level 1 and Level 2 assessments, reporting and recordkeeping requirements related to corrective actions; and completion of start-up activities.

IESWTR
                                                                      4,280,585
                                                                      4,322,149
                                                                         41,564
IESWTR applies to surface water systems serving more than 10,000 people. The increase in IEWSTR burden is attributed to the increase in the number of surface water PWSs serving more than 10,000 people.
FBRR
                                                                              0
                                                                              0
                                                                              0
Existing systems should have completed requirements associated with changing the recycle return location no later than 2006. New PWSs will design their plants to meet these requirements. The burden is negligible.
LT1ESWTR
                                                                        138,391
                                                                        133,839
                                                                        (4,552)
The decrease in LT1ESWTR burden is attributed to the estimated decrease in the number of surface water PWSs serving less than 10,000 people using conventional or direct filtration.

.
LT2ESWTR
                                                                         43,039
                                                                        144,525
                                                                        101,486
This ICR accounts for all the PWSs that installed new technologies as a result of the first round of LT2ESWTR source water monitoring and are now complying with reporting requirements associated with these treatment changes. In addition, PWSs will be conducting the second round of Cryptosporidium monitoring during this ICR period. The LT2ESWTR burden also accounts for changes in the PWS inventory.

GWR
                                                                        581,601
                                                                        860,961
                                                                        279,360
The increase in GWR burden is attributed to the increase in number of systems adding 4-log disinfection and conducting compliance monitoring during this ICR period. The number of systems conducting compliance monitoring is expected to increase each year post-GWR promulgation as more entry points install 4-log disinfection. In addition, the burden also accounts for changes in the PWS inventory.

TOTAL
     11,083,337
  12,027,240
    943,903
Adjusted PWS Burden.
 Notes:
 (1) Detail may not add exactly to total due to independent rounding.
 (2) System Burden associated with the first 3 years of RTCR implementation (747,848 hours) was amended to the 2012 OMB-approved Microbial Rules ICR on January 23, 2014 and is included in the previous annual burden estimate listed above. Net change burden and costs (i.e. incremental costs over the 1989 TCR) developed in the standalone RTCR ICR (OMB Control Number 2040-AD94) for the period following the RTCR effective date of April 1, 2016 are being incorporated into the 2015 Microbial Rules ICR. Note that net change burden related to RTCR PN has been removed from the RTCR standalone ICR and is accounted for under the PN Rule in the 2015 PWSS Programmatic ICR.

                                      Exhibit 13
            Adjustments to Air Carrier Burden from Previous ICR Estimates

    Activity
                     2012 Annual Burden Estimate    (Hours)
                      2015 Annual Burden Estimate  (Hours)

  Change in Burden

         Reason for Change in Burden
ADWR
                                                                         35,087
                                                                         34,340
                                                                          (747)
The change in burden is attributed to the use of updated aircraft inventory and revised estimated rates of total coliform positive occurrence based on actual field data in ARCS.

TOTAL
       35,087
        34,340
     (747)
Adjusted Air Carrier Burden

                                      Exhibit 14
           Adjustments to Primacy Agency Burden from Previous ICR Estimates
                                     Activity
                      2012 Annual Burden Estimate  (Hours)
                      2015 Annual Burden Estimate (Hours)
                                Change in Burden

          Reason for Change in Burden
SWTR
                                                                        266,889
                                                                        264,421
                                                                        (2,467)
The change in burden is attributable to the use of updated system inventories. Note that the overall system inventory has decreased since the previous ICR, and the state burden is based on the system inventory.

TCR/RTCR2
                                                                        550,615
                                                                        448,931
                                                                      (101,684)
For purposes of this Microbial Rules ICR, the total burden associated with the TCR/RTCR is equal to the sum of the TCR burden over three years plus the net change in RTCR burden over 2.5 years. This assumption was made to ensure the model accurately reflected the full burden for TCR/RTCR.

The change in TCR burden is attributed to the adjustments made in the modeling inputs to account for updated PWS inventory and total coliform MCL violations reported to SDWIS. This information was obtained from an October 2014 SDWIS data pull. In addition, the increase in the RTCR burden is attributed to the rule requirements such as conducting routine, additional routine, and repeat monitoring; Level 1 and Level 2 assessments, reporting and recordkeeping requirements related to corrective actions; and completion of start-up activities. States must also submit information to SDWIS to assist both EPA and states in tracking PWS compliance.

The decrease in RTCR burden is attributed to the completion of state start-up activities related to implementation prior to the time period covered by this ICR.

IESWTR
                                                                        947,908
                                                                        964,787
                                                                         16,879
IESWTR applies to surface water systems serving more than 10,000 people, and the state burden is based on the number of systems complying with the rule. Since the previous ICR, the number of large surface water systems has increased, resulting in an increase in state burden.

FBRR
                                                                              0
                                                                              0
                                                                              0
States have completed the review and recordkeeping associated with the FBRR. The burden is negligible.
LT1ESWTR
                                                                        119,237
                                                                        115,789
                                                                        (3,448)
The change in burden results from updated system inventories. The state burden is based on the system inventory.
LT2ESWTR
                                                                         28,642
                                                                        100,317
                                                                         71,675
This ICR accounts for all the PWSs that installed new technologies as a result of the first round of LT2ESWTR source water monitoring and are now complying with reporting requirements associated with these treatment changes. In addition, PWSs will be conducting the second round of Cryptosporidium monitoring during this ICR period. The LT2ESWTR burden also accounts for changes in the PWS inventory.

GWR
                                                                        738,226
                                                                        727,772
                                                                       (10,453)
The change in burden is attributable to the use of updated system inventories. The overall system inventory has decreased since the previous ICR, and the state burden for some rule components is based on the system inventory. Although system burden related to compliance monitoring increases each year post-GWR promulgation as more entry points add 4-log disinfection, the state burden for compliance monitoring report review (disinfection failure) remains relatively consistent.

TOTAL
      2,651,516
      2,622,018
   (29,498)
Adjusted Primacy Agency Burden
 Note:
(1) Detail may not add exactly to totals due to rounding.
(2) Note that the state burden associated with the first 3 years of RTCR implementation (91,678 hours) was amended to the 2012 OMB-approved Microbial Rules ICR on January 23, 2014 and is included in the previous annual burden estimate listed above. Net change burden and costs (i.e., incremental costs over the 1989 TCR) developed in the standalone RTCR ICR (OMB Control Number 2040-AD94) for the period following the RTCR effective date of April 1, 2016, are being incorporated into the 2015 Microbial Rules ICR. Note that net change burden related to RTCR PN has been removed from the RTCR standalone ICR and is accounted for under the PN Rule in the 2015 PWSS Programmatic ICR.

 Exhibit 15 shows the effects of these adjustments on the bottom line burden. Adding 943,903 hours to account for adjustments to PWS burden, subtracting 747 hours to account for adjustments to air carrier burden and subtracting 29,498 hours to account for adjustments to primacy agency burden yields 14,683,598 hours.

                                      Exhibit 15
   Adjustments to Annual Burden Carried Forward from Previous ICR Estimates (Includes PWS, Air Carrier and Primacy Agency Burden)

  Action
    Annual Burden Hours
                               Brief Explanation

None

13,769,940
2012 Microbial Rules ICR inventory based on current burden inventories
(see Exhibit 11).

Add

943,903
Adjustment to the PWS burden carried forward from previous ICRs (see
Exhibit 12).

Add

(747)
Adjustment to Air Carrier burden carried forward from previous ICR (see
Exhibit 13)

Add

(29,498)
Adjustment to the primacy agency burden carried forward from previous ICRs (see Exhibit 14).
Total
14,683,598
Hours requested in 2015 Microbial Rules ICR (see Exhibit 10).
 Note: Detail may not add exactly to totals due to rounding.

 6(g)	Burden Statement

 The public reporting burden for collections included in this ICR is detailed in Exhibit 15 above. The annual respondent burden is estimated to average approximately 14.68 million hours, of which 12.03 million hours are attributable to PWSs, 0.034 million hours to air carriers and 2.62 million hours to primacy agencies (numbers may not add due to rounding). These estimates include time for gathering information as well as developing and maintaining records.

 Burden means the total time, effort, or financial resources expended by people to generate, maintain, retain, disclose, or provide information to or for a federal agency. This includes the time needed to review instructions; develop, acquire, install, and utilize technology, and systems for the purposes of collecting, validating, and verifying information; processing and maintaining information and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information. An agency may not conduct or sponsor, and a person is not required to respond to, a request for information collection unless it displays a currently valid OMB control number. The OMB control numbers for EPA's regulations are listed in 40 CFR Part 9 and 48 CFR Part 15.

 To comment on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including the use of automated collection techniques, EPA has established a public docket for this ICR under Docket ID Number EPA-HQ-OW-2011-0442, which is available for online viewing at www.regulations.gov, or in person viewing at the Water Docket in the EPA Docket Center (EPA/DC), WJC West, Room 3334, 1301 Constitution Ave., NW, Washington, DC. The EPA

 Docket Center Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Reading Room is (202) 566- 1744, and the telephone number for the Water Docket is<PHONE_NUMBER>. An electronic version of the public docket is available at www.regulations.gov. This site can be used to submit or view public comments, to access the index listing of the contents of the public docket, and to access those documents in the public docket that are available electronically. When in the system, select "search," then key in the Docket ID Number identified above. Comments can also be sent to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, DC 20503, Attention: Desk Officer for EPA. Please include the EPA Docket ID Number (EPA-HQ-OW-2011-0442) and the OMB Control Number 2040-0205 in any correspondence.


Reader’s Guide for Pronamide

CRM: Wilhelmena Livingston

EPA/OPPTS/OPP/PRD

Reader’s Guide to Pronamide Docket # EPA-HQ-OPP-2009-0326

Publication Date: September 23, 2009

	EPA has created this document to provide an organizational structure to
the Registration Review Pronamide Docket for Public Comments.  The
docket index groups related documents.  The first group contains the
Federal Register and Docket Organizational Documents, the second group
contains the Human Health Assessment, the third group contains the
Environmental Risk Assessment documents, and the fourth group contains
use/usage information pertaining to the pronamide registration review.
The Agency is providing the “Reader’s Guide” to allow the reader
to more easily access and navigate the various items contained in the
pronamide docket.

Federal Register and Docket Organizational Documents:

Docket Item 1.	Federal Register Notice:  Pronamide Registration Review

Docket Item 2.	Reader’s Guide to the Pronamide Docket # EPA-
	HQ-OPP-2009-0326

Docket Item 3.	Pronamide Summary Document

Human Health Documents for Registration Review

Docket Item 4.	Pronamide (Propyzamide).  Human Health Assessment Scoping
Document in Support of Registration Review

(June 17, 2009)

This document evaluates the status of the human health assessments to
determine the scope of work necessary to support the registration review
of the herbicide pronamide.

Environmental Fate and Effects Documents for Registration Review

Docket Item 5.	Registration Review – Preliminary Problem Formulation
for the Ecological Risk and Environmental Fate, Endangered Species and
Drinking Water Assessments for Pronamide (PC Code 101701); D363909

(May 29, 2009)

This document defines the problem for the assessment, and develops a
plan for analyzing and characterizing the ecological risks.

Use and Usage Information for Registration Review

Docket Item 6.	Pronamide (101701) Screening Level Usage Analysis (SLUA)

(January 6, 2009)

This document provides the available estimates of pesticide usage data
for pronamide that is used on agricultural crops in the United States.

Docket Item 7.	SRRD Appendix A Food/Feed & Non-Food/Non Feed Uses
Considered in Registration Review Work Planning.  Pronamide (101701)
Case No. 0082.

(September 9, 2008)

This table lists the food/feed and non-food/non- feed uses for
pronamide.

Incident Report for Pronamide

Docket Item 8.	Updated Review of Pronamide Incident Reports

(April 23, 2009)

This report represents poisoning incidents occurring in the United
States from 2002 to the present for pronamide.