29.6042
                                                                        $1,685

                                                                            237
                                                                       $13,480

Foreign Accreditation Body
                                                                             17
                                                                        29.6642
                                                                        $1,688

                                                                            504
                                                                       $28,696

Domestic TPC obtaining one additional accreditation
                                                                              3
                                                                        37.3250
                                                                        $2,090
                                                                       $25,000
                                                                            112
                                                                        $6,270
                                                                       $75,000
Domestic TPC with current accreditations
                                                                              6
                                                                        37.3250
                                                                        $2,090

                                                                            224
                                                                       $12,540

Foreign TPC obtaining one additional accreditation
                                                                              9
                                                                        37.3550
                                                                        $2,092
                                                                       $25,000
                                                                            336
                                                                       $18,828
                                                                      $225,000
Foreign TPC with current accreditations
                                                                             18
                                                                        37.3550
                                                                        $2,092

                                                                            672
                                                                       $37,656

Year 2
Domestic Accreditation  Body
                                                                              8
                                                                        12.1442
                                                                          $633

                                                                             97
                                                                        $5,064

Foreign Accreditation Body
                                                                             17
                                                                        12.2042
                                                                          $636

                                                                            207
                                                                       $10,812

Domestic TPC obtaining one additional accreditation
                                                                              3
                                                                        19.1650
                                                                          $983
                                                                        $5,000
                                                                             57
                                                                        $2,949
                                                                       $15,000
Domestic TPC with current accreditations
                                                                              6
                                                                        19.1650
                                                                          $983

                                                                            115
                                                                        $5,898

Foreign TPC obtaining one additional accreditation
                                                                              9
                                                                        19.1950
                                                                          $985
                                                                        $5,000
                                                                            173
                                                                        $8,865
                                                                       $45,000
Foreign TPC with current accreditations
                                                                             18
                                                                        19.1950
                                                                          $985

                                                                            346
                                                                       $17,730

                                         Year 3
Domestic Accreditation Body
                                                                              8
                                                                        19.6042
                                                                        $1,070

                                                                            157
                                                                        $8,560

Foreign Accreditation Body
                                                                             17
                                                                        19.6642
                                                                        $1,073

                                                                            334
                                                                       $18,241

Domestic TPC obtaining one additional accreditation
                                                                              3
                                                                        19.1650
                                                                          $983
                                                                        $5,000
                                                                             57
                                                                        $2,949
                                                                       $15,000
Domestic TPC with current accreditations
                                                                              6
                                                                        19.1650
                                                                          $983

                                                                            115
                                                                        $5,898

Foreign TPC obtaining one additional accreditation
                                                                              9
                                                                        19.1950
                                                                          $985
                                                                        $5,000
                                                                            173
                                                                        $8,865
                                                                       $45,000
Foreign TPC with current accreditations
                                                                             18
                                                                        19.1950
                                                                          $985

                                                                            346
                                                                       $17,730

                                   Three Year Average
Domestic Accreditation Body
                                                                              8
                                                                        20.4509
                                                                        $1,129

                                                                            164
                                                                        $9,035

Foreign Accreditation Body
                                                                             17
                                                                        20.5109
                                                                        $1,132

                                                                            349
                                                                       $19,250

Domestic TPC obtaining one additional accreditation
                                                                              3
                                                                        25.2183
                                                                        $1,352
                                                                       $11,667
                                                                             76
                                                                        $4,056
                                                                       $35,000
Domestic TPC with current accreditations
                                                                              6
                                                                        25.2183
                                                                        $1,352

                                                                            151
                                                                        $8,112

Foreign TPC obtaining one additional accreditation
                                                                              9
                                                                        25.2483
                                                                        $1,354
                                                                       $11,667
                                                                            227
                                                                        $12,186
                                                                      $105,000
Foreign TPC with current accreditations
                                                                             18
                                                                        25.2483
                                                                        $1,354

                                                                            454
                                                                       $24,372

          All Entities
                                                                             61
                                                                        23.2945
                                                                        $1,262
                                                                        $2,295
                                                                           1421
                                                                       $77,010
                                                                      $140,000

Regulatory Flexibility Act Analysis

This section presents the impact of the costs of accreditation under the proposed TSCA Title VI TPC rule on the financial condition of small entities. The Regulatory Flexibility Act (RFA) of 1980, amended by the Small Business Regulatory Enforcement Fairness Act (SBREFA) of 1996, requires regulators to assess the effects of regulations on small entities including businesses, nonprofit organizations, and governments. In some instances, agencies are also required to examine regulatory alternatives that may reduce adverse economic effects on significantly impacted small entities.  The RFA requires agencies to prepare an initial and final regulatory flexibility analysis for each rule unless the Agency certifies that the rule will not have a significant economic impact on a substantial number of small entities.  The RFA, however, does not specifically define "a significant economic impact on a substantial number" of small entities. Sections 603 and 604 of the RFA require that regulatory flexibility analyses identify the types, and estimate the numbers, of small entities to which the rule will apply; and describe the rule requirements to which small entities will be subject and any regulatory alternatives, including exemptions and deferral, which would lessen the rule's burden on small entities.

The TPC rule will affect small businesses and small non-profit organizations.  (No small governments are expected to be affected by the TPC rule.)  Under the Regulatory Flexibility Act (RFA), a "small business" is determined by the U.S. Small Business Administration's regulations at 13 CFR 121.201 (which create small business size standards using either a sales or employment threshold, depending on the nature of the industry), unless an agency establishes an alternate definition.  And unless an agency establishes an alternate definition, under the RFA the term "small organization" means any not-for-profit enterprise which is independently owned and operated and is not dominant in its field.  The RFA does not provide any guidance on how to judge whether an organization is dominant in its field.  Non-profit TPCs and accreditation bodies perform the same activities (such as conducting and verifying formaldehyde emissions tests, accrediting, and auditing) as their for-profit counterparts.  In order to interpret the RFA criteria for small organizations and treat all affected entities consistently, this analysis determines the size status of non-profits by applying the SBA size thresholds for the NAICS codes the non-profits are classified in.

To fulfill the requirements of the RFA, this analysis addresses two basic questions regarding the proposed rule: (1) the number and type of small entities potentially affected, and (2) the extent of the rule's potential economic impact on those entities as measured by the cost-to-revenue ratio for businesses and the cost-to-expenses ratio for small non-profit organizations.  This ratio is a good measure of entities' ability to afford the costs attributable to a regulatory requirement, because comparing compliance costs to revenues or expenses provides a reasonable indication of the magnitude of the regulatory burden relative to a commonly available measure of economic activity.  Where regulatory costs represent a small fraction of a typical entity's revenues or expenses, the financial impacts of the regulation on such entities may be considered as not significant.  The impact ratios are calculated using annualized costs, because these costs are more representative of the continuing costs entities face to comply with the rule.

Small Entity Impacts for Accreditation Bodies

As described in Section 2.2.1, five of the eight U.S. accreditation bodies that are IAF or ILAC signatories are non-profit organizations, while two are businesses, and one is a federal government agency.  Using the size standard thresholds from the U.S. Small Business Administration, three of the non-profits and one of the businesses are classified as "small".  Per-firm costs were calculated as the quotient of the 30-year annualized costs and the number of affected firms presented in Table 3-2 (i.e., $6,303 / 8), which results in an annualized cost estimate of $788 per entity per year.  Estimated cost impacts ranged from 0.01 percent to 0.14 percent of expenditures for the three small non-profits, and were 0.21 percent of sales for the small business.  As a result, no small accreditation bodies are expected to be significantly impacted by the rule.

Table 4-2: Small Entity Impacts for U.S. ABs
Type
Annualized Costs
Per Entity
(3% discount rate)
Estimated Number of Small Entities with Impacts

Under One Percent
Between One and Three Percent
                              Over Three Percent
Non-profits
                                                                           $788
                                       3
                                       0
                                       0
Business
                                                                           $788
                                       1
                                       0
                                       0
Total
                                       4
                                       0
                                       0

Small Entity Impacts for Third-Party Certifiers

      The cost of the rule to TPCs depends on whether the TPC already has all of the necessary accreditations.  A TPC with all of the accreditations in place is estimated to incur an annualized cost of $1,126 per year for the required applications, reporting, and recordkeeping, while a TPC that needs to obtain an additional accreditation is estimated to incur an annualized cost of $6,826 per year.

      Data were available to make size determinations for four of the nine U.S. TPCs participating in the CARB program.  Using the data in Table 2-1 and the size standard thresholds from the U.S. Small Business Administration, two of these four TPCs are large businesses, and two are small non-profit organizations.  The small non-profits are assumed to have all of their accreditations currently in place, and thus incur a cost of $1,126 per year due to the rule, as shown in Table 4-3.  Based on the expenditure data in Table 2-1, both of the small non-profit TPCs have cost impacts of less than 0.1%.

Table 4-3: Impacts to Small Non-Profit TPCs in the U.S.
Type
Annualized Costs
Per Entity
(3% discount rate)
Estimated Number of Small Entities with Impacts

Under One Percent
Between One and Three Percent
                              Over Three Percent
Non-profits
                                                                         $1,126
                                       2
                                       0
                                       0

      Size information was not located for the remaining five U.S. TPCs.  This analysis assumes that 50 percent of the remaining five TPCs are small businesses, which rounds up to three additional firms.  Based on the information in Section 3.4.3, the analysis also assumes that two of the three will already have all their accreditations in place and that one will need to obtain an additional accreditation.  As a result, the two TPCs with accreditations in place will incur an estimated annualized cost of $1,126 and the TPC that needs to obtain an additional accreditation will incur an estimated annualized cost of $6,826.

      Data from the 2007 Economic Census data (U.S. Census Bureau 2007) was used to estimate impacts on the three TPCs that are assumed to be small businesses.  The Census data provided the number of firms in different revenue brackets (less than $100,000 per year, $100,000 to $499,999, $500,000 to $999,999, etc.) for the affected NAICS codes (541330, 541380, 541611, and 561990).  Revenue thresholds were then back-calculated such that annualized compliance costs created a one or three percent impact.  For example, revenue would have to be less than $112,600 in order for a firm with all of its accreditations to have at least a one percent impact, and less than $37,533 in order to have an impact of at least three percent.

      The next step was to interpolate the number of firms below each of these revenue thresholds, assuming that firms are evenly distributed within a revenue bracket.  For example, out of 123,359 firms in these NAICS codes, the Census reported that 32,987 firms had revenues of less than $100,000, and 49,013 firms had revenues between $100,000 and $499,999.  Therefore, as shown in Table 4-4, an estimated 34,222 firms have revenues below $112,600.

      In this example, these 34,222 firms represent 28% of the firms in these NAICS codes.   Multiplying the two small business TPCs with all necessary accreditations by 28%, and rounding to the nearest whole number, yields the result that one of these firms is estimated to have impacts over the one percent level.  Performing a similar calculation for the three percent impact level yields the result that neither of the two small business TPCs with all their accreditations are predicted to have an impact over the three percent level.  So the second TPC with all of its accreditation has an impact of less than one percent (not shown in Table 4-4).  Repeating these calculations for the small business TPC that needs an additional accreditation yields the result that it is estimated to have a cost impact between one percent and three percent.

Table 4-4: : Impacts to Small Business TPCs in the U.S.
                                   Firm Type
                 Annualized Costs Per Firm (3% discount rate)
                         Associated Revenue Thresholds
                      Number of Firms Below Threshold[1]
                      Percent of Firms Below Threshold[2]
              Estimated Number of Small TPCs with Impacts Over[3]

                                   1% Impact
                                   3% Impact
                                   1% Impact
                                   3% Impact
                                   1% Impact
                                   3% Impact
                                   1% Impact
                                   3% Impact
Firms with all necessary accreditations
(n = 2)
                                                                        $1,126
                                                                      $112,600
                                                                       $37,533
                                                                         34,222
                                                                         12,381
                                                                            28%
                                                                            10%
                                                                              1
                                                                              0
Firms that need to obtain one additional accreditation
(n = 1)
                                                                        $6,826
                                                                      $682,600
                                                                      $227,533
                                                                         84,700
                                                                         45,489
                                                                            69%
                                                                            37%
                                                                              1
                                                                              0
Notes: 1. The analysis assumes that firms are distributed evenly within a revenue bracket.
2. The percentage of firms below the threshold is calculated by dividing the number of firms below the threshold by 123,359 (the total number of firms in NAICS codes 541,330, 541380, 541611, and 561990.
3. The analysis assumes that two of the three small business TPCs will already have accreditations in place and that one will need to obtain additional accreditation.

As described in Section 2.2.1, the CARB TPCs appear to be larger than the average firms in these industries, so Census statistics may underestimate the revenues and overestimate the impacts on TPCs (which represent just 0.006 percent of the firms in these NAICS codes).

Table 4-5 summarizes the annualized per-firm costs, and the number of affected number of TPCs with impacts exceeding the one and three percent levels.  Costs are estimated to exceed the one percent level for two small businesses.  However, given that these firms have the incentive to seek accreditation only if they can pass through their costs to the firms they are certifying, they are not expected to experience a negative economic impacts as a result of this proposed rule.

Table 4-5: Small Entity Impacts for U.S. TPCs
Certification Status
 Annualized Costs Per Entity
(3% discount rate)
Small Entity Type
Estimated Number of Small Entities
with Impacts

Under One Percent
Between One and Three Percent
                              Over Three Percent
TPCs with current AB certification
                                                                        $1,126
Non-profit
                                       2
                                       0
                                       0

Business
                                       1
                                       1
                                       0
TPCs that need to obtain new AB certification
                                                                         $6,826
Non-profit
                                       0
                                       0
                                       0

Business
                                       0
                                       1
                                       0
Combined
Non-profit
                                       2
                                       0
                                       0

Business
                                       1
                                       2
                                       0

Total
                                       3
                                       2
                                       0

Summary of Small Entity Impacts to ABs and TPCs

As shown in Table 4-6, there are a total of 9 small entities in the U.S. assumed to be directly affected by the Title VI TPC rule.  Five of these are non-profits, all of which are estimated to have cost impacts of less than one percent of expenditures.  Four are businesses, two of which are estimated to have cost impacts of less than one percent of revenues, and two of which are estimated to have cost impacts between one percent and three percent of revenues.

Table 4-6:  Summary of Small Entity Impacts to ABs and TPCs
Entity Type

Number of U.S. Entities that are Small
Estimated Number of Small Entities with Impacts

Under One Percent
Between One and Three Percent
                              Over Three Percent
                                     TPCs
Non-profit
                                       2
                                       2
                                       0
                                       0

Business
                                       3
                                       1
                                       2
                                       0
                                      ABs
Non-profit
                                       3
                                       3
                                       0
                                       0

Business
                                       1
                                       1
                                       0
                                       0
                                   Combined
Non-profit
                                       5
                                       5
                                       0
                                       0

Business
                                       4
                                       2
                                       2
                                       0

Total
                                       9
                                       7
                                       2
                                       0

Unfunded Mandates Reform Act (UMRA)

	Title II of the Unfunded Mandates Reform Act of 1995, Pub. L. 104-4, establishes requirements for Federal agencies to assess the effects of their regulatory actions on State, local, and Tribal governments, and the private sector.  Under section 202 of the UMRA, EPA generally must prepare a written statement, including a cost-benefit analysis, for proposed and final rules with "Federal mandates" that might result in expenditures by State, local, and Tribal governments, in the aggregate, or by the private sector, of $100 million or more (when adjusted annually for inflation) in any one year.

The cost of the proposed TPC rule is well below $100 million per year in any one year.  The rule is not expected to affect State, local, and Tribal governments.

Executive Order 13132 - Federalism

Executive Order 13132, entitled Federalism (64 FR 43255, August 10, 1999), directs federal agencies to consider whether a rule has federalism implications (i.e. whether it has substantial direct effects on the states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132).

The TPC rule does not have a substantial direct effects on states or local governments (individually or collectively), on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. No state or local governments are expected to become TPCs or accreditation bodies, and thus state and local governments will not incur direct compliance costs as a result of the rule. The rule does not preempt state or local law, and the rule is required by statute.

Executive Order 13175 - Tribal Implications

Executive Order 13175, entitled Consultation and Coordination with Indian Tribal Governments (59 FR 22951, November 6, 2000), directs federal agencies to consider whether a rule has tribal implications (i.e. whether it has substantial direct effects on tribal governments, on the relationship between the Federal government and the Indian tribes, or on the distribution of power and responsibilities between the Federal government and Indian tribes). No tribal government is expected to become a TPC or an accreditation body, and thus tribal governments will not incur direct compliance costs as a result of the rule. The rule does not change the relationship between the Federal government and Indian tribes, or change the distribution of power.

Executive Order 13045 - Protection of Children

Under Executive Order 13045, a regulation must be reviewed if the regulatory action is economically significant and concerns an environmental health risk or safety risk that may disproportionately affect children.  The proposed TPC rule is not economically significant because it will not have an annual impact on the economy of $100 million or more.

Executive Order 13211 - Energy Effects
	Executive Order 13211, entitled Actions Concerning Regulations that Significantly Affect Energy Supply, Distribution, or Use (66 FR 28355, May 22, 2001), directs federal agencies to identify actions that will have a significant adverse energy effect.  Adverse effects are defined as:

   * Reductions in crude oil supply in excess of 10,000 barrels per day;
   * Reductions in fuel production in excess of 4,000 barrels per day;
   * Reductions in coal production in excess of 5 million tons per year;
   * Reductions in natural gas production in excess of 25 million mcf per year;
   * Reductions in electricity production in excess of 1 billion kilowatt-hours per year or in excess of 500 megawatts of installed capacity;
   * Increases in energy use required by the regulatory action that exceed any of the thresholds above;
   * Increases in the cost of energy production in excess of one percent;
   * Increases in the cost of energy distribution in excess of one percent; or
   * Other similarly adverse outcomes.

The regulations under consideration will not significantly reduce energy production nor significantly increase energy costs.

National Technology Transfer and Advancement Act

	Section 12(d) of the National Technology Transfer and Advancement Act of 1995 ("NTTAA"), Public Law No. 104-113 (15 U.S.C. 272 note) directs EPA to use voluntary consensus standards in its regulatory activities unless to do so would be inconsistent with applicable law or otherwise impractical.  Voluntary consensus standards are technical standards (e.g., materials specifications, test methods, sampling procedures, business practices, etc.) that are developed or adopted by voluntary consensus standards bodies.  NTTAA directs EPA to provide Congress, through OMB, explanations when the Agency decides not to use available and applicable voluntary consensus standards.

	This proposed rulemaking involves technical standards, and EPA proposes to use voluntary consensus standards.  The proposed framework of this third party certification program is based on the ability of ABs to review TPCs for their conformity to ISO/IEC Guide 65, ISO/IEC 17025, and ISO/IEC 17020.  Both Product ABs and Laboratory ABs must maintain their conformity to ISO/IEC 17011 and ISO/IEC Guide 65.

Executive Order 12898  -  Environmental Justice

Under Executive Order 12898, when promulgating a regulation, EPA investigates whether there are disproportionately high and adverse human health or environmental effects on minority and low-income populations. Since this proposed rulemaking addresses the process for accreditation bodies and TPCs, this proposed rule does result in any adverse human health or environmental effects.

References
AIHA-LAP LLC. 2012. About AIHA Laboratory Accreditation Programs. Available at: http://www.aihaaccreditedlabs.org/about/pages/default.aspx (Accessed April 27, 2012)
American Business Directory. 2011. 2011 American Business Information: Perry Johnson Inc. and Perry Johnson Registrars.
California Air Resources Board (CARB). 2011. List of CARB Approved Third Party Certifiers.
Dun & Bradstreet. 2011. Company Reports. Proprietary Database.
International Accreditation Forum (IAF). 2011. Signatories to the IAF MLA for ISO 9001, ISO 14001, Product, 31 May 2011.
International Laboratory Accreditation Cooperation (ILAC). 2011. Signatories to the ILAC Mutual Recognition Arrangement, Updated 16 May 2011.
Perry Johnson & Associates. 2012. Contact us - Perry Johnson & Associates, Inc. Available at: www.pjats.com/contact-us/ (Accessed April 27, 2012)
Personal Communication with Forestwood Industries. 2011. Conversation between Gary Poserina (Forestwood Industries, Inc.) and Abt Associates Inc. . March 2, 2011.
Personal Communication with IAS. 2011. Conversation between Patrick McCullen (International Accreditation Service) and Abt Associates Inc. June 22, 2011.
Personal Communication with NSF International. 2011a. Conversation between Kerri Levanseler (NSF International) and Abt Associates Inc. March 2, 2011.
Personal Communication with NSF International. 2011b. Conversation between Craig Moore (NSF International) and Abt Associates Inc. March 11, 2011.
Personal Communication with NTA Inc. 2011. Conversation between Dale Arter (NTA Inc.) and Abt Associates Inc. March 2, 2011.
Personal Communication with PFS Corporation. 2011. Conversation between James Van Schoyck and Ron Reindl (PFS Corporation, Inc.) and Abt Associates Inc. February 25, 2011.
Personal Communication with PSI. 2011. Conversation between Randy Webb (Professional Service Industries, Inc.) and Abt Associates Inc. February 14, 2011.
Personal Communication with SCS International. 2011. Conversation between Michael Wolfe (SCS International) and Abt Associates Inc. February 28, 2011.
PFS Corporation. 2012. History - PFS Corporation. Available at: www.pfscorporation.com/history.php (Accessed April 27, 2012)
Professional Service Industries Inc. (PSI). 2012. Welcome to PSI. Available at: www.psiusa.com (Accessed April 27, 2012)
Scientific Certification Systems (SCS). 2012a. Staff Roster - Scientific Certification Systems. Available at: www.scscertified.com/scs_staff.php (Accessed April 27, 2012)
Scientific Certification Systems (SCS). 2012b. Management Roster - Scientific Certification Systems. Available at: www.scscertified.com/scs_management.php (Accessed April 27, 2012)
U.S. Bureau of Labor Statistics (BLS). 2011. Employer Costs for Employee Compensation: Supplementary Tables: Historical Data: December 2006 - March 2011.
U.S. Census Bureau. 2010a. Sector 54: EC0754SSSZ4: Professional,  Scientific, and Technical Services: Subject Series - Estab & Firm Size: Receipts/Revenue Size of Firms for the United States: 2007.
U.S. Census Bureau. 2010b. Sector 56: EC0756SSSZ4: Administrative and Support and Waste Management and Remediation Services: Subject Series - Establishment and Firm Size: Receipts Size of Firms for the United States: 2007.
U.S. Census Bureau. 2010c. Sector 81: EC0781SSSZ4: Other Services (Except Public Administration): Subject Series - Estab & Firm Size: Receipts/Revenue Size of Firms for the United States: 2007.
U.S. Census Bureau. 2010d. Sector 31: EC0731I1: Manufacturing: Industry Series: Detailed Statistics by Industry for the United States: 2007.
U.S. Environmental Protection Agency (EPA). 2002a. Economic Analysis for the Amended Inventory Update Rule: Final Report (EPA-HQ-OPPT-2002-0054-0260). August 2002.
U.S. Environmental Protection Agency (EPA). 2002b. Wage Rates for Economic Analysis of the Toxics Release Inventory Program. June 10, 2002.
U.S. Environmental Protection Agency (EPA). 2009. Economic Analysis of the Premanufacture Notification Electronic Reporting Final Rule. U. S. E. P. A. Office of Pollution Prevention and Toxics. July 13, 2009.
U.S. Environmental Protection Agency (EPA). 2011a. Supporting Statement for a Request for OMB Review under the Paperwork Reduction Act: the Final Rule Addendum to Partial Update of the TSCA Section 8(b) TSCA Inventory Data Base, Production and Site Reports.
U.S. Environmental Protection Agency (EPA). 2011b. Supporting Statement for EPA Information Collection Request Number 2002.05, "Cross-Media Electronic Reporting Rule" Office of Environmental Information, U.S. Environmental Protection Agency. June 22, 2011.
U.S. Internal Revenue Service. 2009. Form 990: Return of Organization Exempt from Income Tax for Nonprofit ABs and TPCs.
U.S. Internal Revenue Service. 2010. Form 990: Return of Organization Exempt from Income Tax for Nonprofit ABs and TPCs.
U.S. Small Business Administration. 2010. Table of Small Business Size Standards Matched to North American Industry Classification System Codes.
Weinstein, H. G. and M. A. Loewenstein. 2004. Comparing Current and Former Industry and Occupation ECEC Series. August 25, 2004.

Appendix A --------------------------------------------------------------------------------

Appendix A --------------------------------------------------------------------------------
 -  Wage Rate Calculations
This appendix describes the derivation of the fully loaded wage rates and inflation factors used in calculating costs of labor, materials, and other inputs. All cost estimates are presented in fourth quarter, calendar year 2010 dollars, representing the most recent full year of data available.

The fully loaded unit labor cost for managerial, professional/technical, and clerical labor in the regulated industry and for EPA staff is estimated by adding fringe benefits and overhead costs to the hourly wage or annual salary for each category following the method described in Wage Rates for Economic Analysis of the Toxics Release Inventory Program  (EPA 2002b). This appendix describes the method employed to estimate the fully loaded unit labor costs for each labor category and presents the results of the analysis.

Labor categories used in the analysis correspond to the U.S. Bureau of Labor Statistics (BLS) Standard Occupational Classification (SOC) system. In March 2004, BLS began using the North American Industry Classification System (NAICS) instead of the Standard Industrial Classification (SIC) System, and the Standard Occupational Classification (SOC) system instead of the Occupational Classification System (OCS). Exhibit A-1 summarizes the crosswalk between old and new occupational titles, and lists the SOC titles that correspond to the managerial, professional/technical, and clerical labor categories used in this analysis (Weinstein and Loewenstein 2004).

Exhibit A-1: Detail of Labor Categories Used in the Analysis
Labor Category Used in the Analysis
BLS Old Title (OCS)
BLS New Title (SOC)
Managerial
Executive, administrative, and managerial
Management, business, and financial
Professional/Technical
Professional specialty and technical
Professional and related
Clerical
Administrative support, including clerical
Office and administrative support
Source: Weinstein and Loewenstein 2004

Wages and fringe benefit data for managerial, professional/technical, and clerical labor are from the BLS Employer Costs for Employee Compensation (ECEC) historical data for December 2006  -  March 2011 (BLS 2011).

The costs of fringe benefits such as paid leave and insurance, specific to each labor category, are taken from the same BLS report (BLS 2011). Fringe benefits as a percentage of wages are calculated separately for each labor category. For example, for December 2010, the average wage rate for professional/ technical labor was $36.57, and the average fringe benefit was $13.52. Therefore, fringe benefits as a percentage of wages were $13.52/$36.57, or approximately 37 percent (see Exhibit A-2).

An additional loading factor of 17 percent is applied to wages to account for overhead. This approach is used for consistency with Office of Pollution Prevention and Toxics (OPPT) economic analyses for two major rulemakings: Wage Rates for Economic Analyses of the Toxics Release Inventory Program, June 2002 (EPA 2002b), and the Revised Economic Analysis for the Amended Inventory Update Rule: Final Report, August 2002 (EPA 2002a). This overhead loading factor is added to the benefits loading factor, and the total is then applied to the base wage to derive the fully loaded wage. For example, the December 2010 fully loaded wage for professional/technical labor is $36.97 x (1+ 0.37 + 0.17) = $56.31.

Fully loaded costs for managerial and clerical labor are calculated in a similar manner, as shown in Exhibit A-2.

Exhibit A-2: Derivation of Loaded Industry Wage Rates
Labor Category
Data Source for Wage Information
Date
Wage
Fringe Benefit
Fringes as % wage
Overhead as % wage [a]
Fringe + overhead factor
Loaded Wages

(a)
(b)
(c)=(b)/(a)
(d)
(e)=(c)+(d)+1
(f)= (a)*(e)
Clerical
BLS ECEC, Private Professional and Business Services Industries, "Office and Administrative Support"[2]
                                    Dec-10
                                    $16.72
                                    $6.09
                                    36.42%
                                      17%
                                     1.53
                                    $25.65
Professional/
Technical
BLS ECEC, Private Professional and Business Services Industries, "Professional and related"[2]
                                    Dec-10
                                    $36.57
                                    $13.52
                                    36.97%
                                      17%
                                     1.54
                                    $56.31
Managerial
BLS ECEC, Private Professional and Business Services Industries, "Mgt, Business, and Financial"[2]
                                    Dec-10
                                    $42.42
                                    $17.15
                                    40.43%
                                      17%
                                     1.57
                                    $66.78
Notes:
[a] An overhead rate of 17% is used based on assumptions in EPA (2002a) and EPA (2002b).
[b] Data for this occupational series found in BLS (2011).

Appendix B --------------------------------------------------------------------------------
  -  Recordkeeping and Reporting Burdens
Table B-1 and Table B-2 present the estimated per-activity recordkeeping and reporting burdens for accreditation bodies and third party certifiers, respectively.  Table B-3 and Table B-4 present the estimated annual frequency of the recordkeeping and reporting activity as well as the associated clerical, technical, and managerial cost.  Total costs are calculated as the sum of the component costs.

Table B-1: Recordkeeping and Reporting Burden for Accreditation Bodies, by Activity
Activity[1]
Per Activity Burden Hours
Number of Annual Activities
(d)

Clerical
Technical
Managerial

 Total Burden (hours)

(a)
(b)
(c)

(e) = (d)*{(a)+(b)+(c)}
1. Rule Familiarization
                                                                           0.00
                                                                           5.00
                                                                           5.00
                                                                           1.00
                                                                        10.0000
2. Application Submission
  Company Information (Name, Address, Telephone Number, and Email Address of Primary Contact)[2]
                                                                           0.00
                                                                           0.04
                                                                           0.02
                                                                           1.00
                                                                         0.0600
  Documentation of IAF MLA, ILAC MRA, or Equivalent Signatory Status[2]
                                                                           0.00
                                                                           0.04
                                                                           0.02
                                                                           1.00
                                                                         0.0600
  Description of Any Other Qualifications Related to Experience in Performing Accreditation of Conformity Assessment Bodies or Third Party Certifiers[3]
                                                                           0.00
                                                                           0.83
                                                                           0.51
                                                                           1.00
                                                                         1.3400
3. Recognition Agreement[4]
                                                                           1.00
                                                                           1.00
                                                                           4.00
                                                                           1.00
                                                                         6.0000
4. EPA Notification
  Loss of Status as a Signatory to the IAF MLA, ILAC MRA, or Equivalent Organization[5]
                                                                           0.00
                                                                           0.08
                                                                           0.04
                                                                           0.05
                                                                         0.0060
  Third Party Certifier Applications[5]
                                                                           0.00
                                                                           0.08
                                                                           0.04
                                                                           3.00
                                                                         0.3600
  Third Party Certifier Accreditation[5]
                                                                           0.00
                                                                           0.08
                                                                           0.04
                                                                           3.00
                                                                         0.3600
  Third Party Certifier Compliance Failure[5]
                                                                           0.00
                                                                           0.08
                                                                           0.04
                                                                           0.33
                                                                         0.0396
  Third Party Certifier Accreditation Suspension or Revocation (Product ABs) / Accredited Laboratory Compliance Failure (Laboratory ABs)[5]
                                                                           0.00
                                                                           0.08
                                                                           0.04
                                                                           0.33
                                                                         0.0396
  Change to Organizational Policy or Management Structure that Could Adversely Affect Accreditation Program[5]
                                                                           0.00
                                                                           0.08
                                                                           0.04
                                                                           0.20
                                                                         0.0240
  Checklists and Other Records Documenting Compliance with the Requirements for Systems Audits and On-site Assessment of Third Party Certifiers[5]
                                                                           0.00
                                                                           0.08
                                                                           0.04
                                                                           1.00
                                                                         0.1200
  Change in Name or Address of Domestic Agent (Foreign Entities Only)[5]
                                                                           0.00
                                                                           0.08
                                                                           0.04
                                                                           0.50
                                                                         0.0600
5. Third Party Certifier Notification
  Unique Tracking Number[2]
                                                                           0.00
                                                                           0.04
                                                                           0.02
                                                                           3.00
                                                                         0.1800
  Withdraw from or be Removed from Program[2]
                                                                           0.00
                                                                           0.04
                                                                           0.02
                                                                           0.25
                                                                         0.0150
6. Recordkeeping
  Accreditation Applications[6]
                                                                           0.75
                                                                           1.50
                                                                           0.75
                                                                           1.00
                                                                         3.0000
  Checklists and Other Records Documenting Compliance with the Requirements for Systems Audits and On-site Assessment of Third Party Certifiers[6]
                                                                           0.75
                                                                           1.50
                                                                           0.75
                                                                           1.00
                                                                         3.0000
7. Annual Report to EPA
  Number of Third Party Certifier Applications Received[7]
                                                                           0.25
                                                                           0.50
                                                                           0.25
                                                                           1.00
                                                                         1.0000
  Number of Third Party Certifier Applications Approved and Denied[7]
                                                                           0.25
                                                                           0.50
                                                                           0.25
                                                                           1.00
                                                                         1.0000
  The Names and Contact Information of All Accredited Third Party Certifiers[7]
                                                                           0.25
                                                                           0.50
                                                                           0.25
                                                                           1.00
                                                                         1.0000
  Number and Locations of Systems Audits and On-site Assessments[7]
                                                                           0.25
                                                                           0.50
                                                                           0.25
                                                                           1.00
                                                                         1.0000
  Results of Accredited Third Party Certifier Laboratory Proficiency Testing or Inter-laboratory Comparisons[7]
                                                                           0.25
                                                                           0.50
                                                                           0.25
                                                                           1.00
                                                                         1.0000
Domestic Total in First Year

                                                                        29.6042
Foreign Total in First Year

                                                                        29.6642
Domestic Total in Year 2(Non-Reapplication Year)

                                                                        12.1442
Foreign Total in Year 2 (Non-Reapplication Year)

                                                                        12.2042
Domestic Total in Year 3 (Reapplication Year)

                                                                        19.6042
Foreign Total in Year 3 (Reapplication Year)

                                                                        19.6642
Notes: 1. Under the proposed rule, accreditation bodies are required to submit an application to renew their recognition agreement every three years.  As a result, this analysis assumes that accreditation bodies incur application submission and recognition agreement preparation costs in the first year and subsequently every three years thereafter.
2. Based on the estimated burden associated with reporting "company information" (EPA 2011a).
3. Based on the estimated burden associated with answering substantiation questions when making plant site confidentiality claims (EPA 2011a).
4. Based on conversations with accreditation bodies.
5. Based on the estimated burden associated with reporting "company information" (EPA 2011a). Values have been doubled based on best professional judgment.
6. Based on the estimated burden associated with "recordkeeping" (EPA 2011a). The rule requires that records be kept for 3 years that show the
production volume, plant site, and site-limited status of each reported substance.
7. Estimated as one-third of the burden associated with "recordkeeping" (EPA 2011a). Estimate based on best professional judgment.
Sources: (1) U.S. Bureau of Labor Statistics. 2011. Employer Costs for Employee Compensation: Supplementary Tables: Historical Data: December 2006 - March 2011, and (2) U.S. Environmental Protection Agency. 2011a. Supporting Statement for a Request for OMB Review under the Paperwork Reduction Act: the Final Rule Addendum to Partial Update of the TSCA Section 8(b) TSCA Inventory Data Base, Production and Site Reports.

Table B-2: Recordkeeping and Reporting Burden for Third Party Certifiers, by Activity

Per Activity Burden Hours
Number of Annual Activities
(d)
 Total Burden (hours)
(e) = (d)*{(a)+(b)+(c)}
Activity[1]
Clerical
Technical
Managerial

(a)
(b)
(c)

1. Rule Familiarization
                                                                           0.00
                                                                           5.00
                                                                           5.00
                                                                           1.00
                                                                          10.00
2. Product Accreditation Body Application Submission
  Company Information (Name, Address, Telephone Number, and Email Address of Primary Contact) and Type of Composite Wood Products Applicant Intends to Certify[2]
                                                                           0.00
                                                                           0.04
                                                                           0.02
                                                                           1.00
                                                                           0.06
  Description of TPC's Experience or Ability in Product Certification and Complying with ISO/IEC Guide 65[3]
                                                                           0.00
                                                                           0.83
                                                                           0.51
                                                                           1.00
                                                                           1.34
  Description of TPC's Experience in the Composite Wood Product Industry with the Product(s) Intended to be Certified[3]
                                                                           0.00
                                                                           0.83
                                                                           0.51
                                                                           1.00
                                                                           1.34
  Description of TPC's Ability to Inspect and Properly Train and Supervise Inspectors Pursuant to ISO/IEC 17020[3]
                                                                           0.00
                                                                           0.83
                                                                           0.51
                                                                           1.00
                                                                           1.34
3. Laboratory Accreditation Body Application Submission
  Company Information (Name, Address, Telephone Number, and Email Address of Primary Contact; if foreign, name and address of an agent for service located in the U.S.)[2]
                                                                           0.00
                                                                           0.04
                                                                           0.02
                                                                           1.00
                                                                           0.06
  Description of TPC's Experience in Performing or Verifying Formaldehyde Testing on Composite Wood Products[3]
                                                                           0.00
                                                                           0.83
                                                                           0.51
                                                                           1.00
                                                                           1.34
  Description of TPC's Experience Operating or Using Laboratories that Comply with ISO/IEC 17025[3]
                                                                           0.00
                                                                           0.83
                                                                           0.51
                                                                           1.00
                                                                           1.34
  Description of TPC's Experience with Test Method ASTM E-1333-96 (2002) and Experience Evaluating Correlation between Test Methods[3]
                                                                           0.00
                                                                           0.83
                                                                           0.51
                                                                           1.00
                                                                           1.34
4. Manufacturer Notification
  Third Party Certifier Number2
                                                                           0.00
                                                                           0.04
                                                                           0.02
                                                                           1.00
                                                                           0.06
  Withdraw from Program or Lose Accreditation2
                                                                           0.00
                                                                           0.04
                                                                           0.02
                                                                           0.25
                                                                          0.015
5. Recordkeeping
  List of Manufacturers and their Product Types (including Resins Used) Certified by TPC[4]
                                                                           0.75
                                                                           1.50
                                                                           0.75
                                                                           1.00
                                                                           3.00
  Results of Inspections, Audits, and Emission Tests Conducted for Each Manufacturer and Product Type[4]
                                                                           0.75
                                                                           1.50
                                                                           0.75
                                                                           1.00
                                                                           3.00
  List of the TPC's Laboratories, Test Methods (including Test Conditions and Conditioning Time), and Test Results[4]
                                                                           0.75
                                                                           1.50
                                                                           0.75
                                                                           1.00
                                                                           3.00
  Methods and Results for Establishing Test Method Correlations and Equivalence[4]
                                                                           0.75
                                                                           1.50
                                                                           0.75
                                                                           1.00
                                                                           3.00
  List of Manufacturers and Products Approved for Reduced Testing[4]
                                                                           0.75
                                                                           1.50
                                                                           0.75
                                                                           1.00
                                                                           3.00
6. Annual Report to Accreditation Bodies
  List of Manufacturers and their Products Certified by the TPC during the Previous Year (including Resins Used, and the Average and Range of Formaldehyde Emissions by Manufacturer, Resin, and Product Type)[5]
                                                                           0.25
                                                                           0.50
                                                                           0.25
                                                                           1.00
                                                                           1.00
  List of Noncomplying Products or Events by Manufacturer[5]
                                                                           0.25
                                                                           0.50
                                                                           0.25
                                                                           1.00
                                                                           1.00
  List of Laboratories and Test Methods Used by the TPC[5]
                                                                           0.25
                                                                           0.50
                                                                           0.25
                                                                           1.00
                                                                           1.00
  Results of Inter-Laboratory Comparison or Proficiency Testing for the Laboratories Used by the TPC[4]
                                                                           0.25
                                                                           0.50
                                                                           0.25
                                                                           1.00
                                                                           1.00
7. Accreditation Board Notification
  Personnel Qualification Changes[2]
                                                                           0.00
                                                                           0.04
                                                                           0.02
                                                                           0.50
                                                                           0.03
  Procedure Changes[2]
                                                                           0.00
                                                                           0.04
                                                                           0.02
                                                                           0.50
                                                                           0.03
  Laboratory Changes[2]
                                                                           0.00
                                                                           0.04
                                                                           0.02
                                                                           0.50
                                                                           0.03
8. EPA Notification
 Change in Name or Address of Domestic Agent (Foreign TPCs Only)[2]
                                                                           0.00
                                                                           0.04
                                                                           0.02
                                                                           0.50
                                                                           0.03
Domestic Total in First Year

                                                                         37.325
Foreign Total in First Year

                                                                         37.355
Domestic Total in Non-Reapplication Year

                                                                         19.165
Foreign Total in Non-Reapplications Year

                                                                         19.195
Domestic Total in Reapplication Year

                                                                         27.325
Foreign Total in Reapplications Year

                                                                         27.355
Notes: 1. Under the proposed rule, TPCs are required to apply for re-accreditation every three years.  As a result, application and accreditation costs are incurred every other year.
2. Based on the estimated burden associated with reporting "company information" (EPA 2011a).
3. Based on the estimated burden associated with answering substantiation questions when making plant site confidentiality claims (EPA 2011a).
4. Based on the estimated burden associated with "recordkeeping" (EPA 2011a). The rule requires that records be kept for 3 years that show the
production volume, plant site, and site-limited status of each reported substance.
5. Estimated as one-third of the burden associated with "recordkeeping" (EPA 2011a). Estimate based on best professional judgment.
Sources: (1) U.S. Bureau of Labor Statistics. 2011. Employer Costs for Employee Compensation: Supplementary Tables: Historical Data: December 2006 - March 2011, and (2) U.S. Environmental Protection Agency. 2011a. Supporting Statement for a Request for OMB Review under the Paperwork Reduction Act: the Final Rule Addendum to Partial Update of the TSCA Section 8(b) TSCA Inventory Data Base, Production and Site Reports.

Table B-3: Recordkeeping and Reporting Labor Costs for Accreditation Bodies, by Activity (2010$)
Activity
Estimated Annual Frequency[1]
Clerical Cost[2]
Technical Cost[2]
Managerial Cost[2]
Total Cost
1. Rule Familiarization
                                                                              1
                                                                         $0.00
                                                                       $281.55
                                                                       $333.90
                                                                          $615
2. Application Submission
  Company Information (Name, Address, Telephone Number, and Email Address of Primary Contact)[3]
                                                                              1
                                                                         $0.00
                                                                         $2.25
                                                                         $1.34
                                                                         $3.59
  Documentation of IAF MLA, ILAC MRA, or Equivalent Signatory Status[3]
                                                                              1
                                                                         $0.00
                                                                         $2.25
                                                                         $1.34
                                                                         $3.59
  Description of Any Other Qualifications Related to Experience in Performing Accreditation of Conformity Assessment Bodies or Third Party Certifiers[4]
                                                                              1
                                                                         $0.00
                                                                        $46.74
                                                                        $34.06
                                                                        $80.80
  Application Submission Subtotal

                                                                            $88
3. Recognition Agreement[5]
                                                                              1
                                                                        $25.65
                                                                        $56.31
                                                                       $267.12
                                                                          $349
4. EPA Notification
  Loss of Status as a Signatory to the IAF MLA, ILAC MRA, or Equivalent Organization[6]
                                                                           0.05
                                                                         $0.00
                                                                         $0.23
                                                                         $0.13
                                                                         $0.36
  Third Party Certifier Application[6]
                                                                              3
                                                                         $0.00
                                                                        $13.51
                                                                         $8.01
                                                                        $21.53
  Third Party Certifier Accreditation[6]
                                                                              3
                                                                         $0.00
                                                                        $13.51
                                                                         $8.01
                                                                        $21.53
  Third Party Certifier Compliance Failure[6]
                                                                           0.33
                                                                         $0.00
                                                                         $1.49
                                                                         $0.88
                                                                         $2.37
  Third Party Certifier Accreditation Suspension or Revocation (Product ABs) / Accredited Laboratory Compliance Failure (Laboratory ABs)[6]
                                                                           0.33
                                                                         $0.00
                                                                         $1.49
                                                                         $0.88
                                                                         $2.37
  Change to Organizational Policy or Management Structure that Could Adversely Affect Accreditation Program[6]
                                                                            0.2
                                                                         $0.00
                                                                         $0.90
                                                                         $0.53
                                                                         $1.44
  Checklists and Other Records Documenting Compliance with the Requirements for Systems Audits and On-site Assessment of Third Party Certifiers[6]
                                                                              1
                                                                         $0.00
                                                                         $4.50
                                                                         $2.67
                                                                         $7.18
  Change in Name or Address of Domestic Agent (Foreign Entities Only)[6]
                                                                            0.5
                                                                         $0.00
                                                                         $2.25
                                                                         $1.34
                                                                         $3.59
  EPA Notification Subtotal (Domestic)

                                                                            $57
  EPA Notification Subtotal (Foreign)

                                                                            $60
5. Third Party Certifier Notification
  Unique Tracking Number[3]
                                                                              3
                                                                         $0.00
                                                                         $6.76
                                                                         $4.01
                                                                        $10.76
  Withdraw from or be Removed from Program[3]
                                                                           0.25
                                                                         $0.00
                                                                         $0.56
                                                                         $0.33
                                                                         $0.90
  TPC Notification Subtotal

                                                                            $12
6. Recordkeeping
  Accreditation Applications[7]
                                                                              1
                                                                        $19.24
                                                                        $84.47
                                                                        $50.09
                                                                       $153.79
  Checklists and Other Records Documenting Compliance with the Requirements for Systems Audits and On-site Assessment of Third Party Certifiers[7]
                                                                              1
                                                                        $19.24
                                                                        $84.47
                                                                        $50.09
                                                                       $153.79
  Recordkeeping Subtotal

                                                                           $308
7. Annual Report to EPA
  Number of Third Party Certifier Applications Received[8]
                                                                              1
                                                                         $6.41
                                                                        $28.16
                                                                        $16.70
                                                                        $51.26
  Number of Third Party Certifier Applications Approved and Denied[8]
                                                                              1
                                                                         $6.41
                                                                        $28.16
                                                                        $16.70
                                                                        $51.26
  The Names and Contact Information of All Accredited Third Party Certifiers[8]
                                                                              1
                                                                         $6.41
                                                                        $28.16
                                                                        $16.70
                                                                        $51.26
  Number and Locations of Systems Audits and On-site Assessments[8]
                                                                              1
                                                                         $6.41
                                                                        $28.16
                                                                        $16.70
                                                                        $51.26
  Results of Accredited Third Party Certifier Laboratory Proficiency Testing or Inter-laboratory Comparisons[8]
                                                                              1
                                                                         $6.41
                                                                        $28.16
                                                                        $16.70
                                                                        $51.26
  Annual Report Subtotal

                                                                           $256
Domestic Total in First Year

                                                                        $1,685
Foreign Total in First Year

                                                                        $1,688
Domestic Total in Year 2(Non-Reapplication Year)

                                                                          $633
Foreign Total in Year 2 (Non-Reapplication Year)

                                                                          $636
Domestic Total in Year 3(Reapplication Year)

                                                                         $1,070
Foreign Total in Year 3 (Reapplication Year)

                                                                         $1,073
Notes: 1. Based on best professional judgment and rule requirements. Under the proposed rule, accreditation bodies are required to submit an application to renew their recognition agreement every three years.  As a result, this analysis assumes that accreditation bodies incur application submission and recognition agreement preparation costs in the first year and subsequently every three years thereafter.
2. Based on Employer Costs for Employee Compensation wage and benefit data for private professional and business services industries (BLS 2011a). Clerical costs are estimated using data from the "office and administrative support" occupational group; technical costs are estimated using data from the "professional and related" occupational group; and managerial costs are estimated using data from the "management, business, and financial" occupational group.
3. Based on the estimated burden associated with reporting "company information" (EPA 2011a).
4. Based on the estimated burden associated with answering substantiation questions when making plant site confidentiality claims (EPA 2011a).
5. Based on conversations with accreditation bodies.
6. Based on the estimated burden associated with reporting "company information" (EPA 2011a). Values have been doubled based on best professional judgment.
7. Based on the estimated burden associated with "recordkeeping" (EPA 2011a). The rule requires that records be kept for 3 years that show the production volume, plant site, and site-limited status of each reported substance.
8. Estimated as one-third of the burden associated with "recordkeeping" (EPA 2011a). Estimate based on best professional judgment.
Sources: (1) U.S. Bureau of Labor Statistics. 2011. Employer Costs for Employee Compensation: Supplementary Tables: Historical Data: December 2006 - March 2011, and (2) U.S. Environmental Protection Agency. 2011a. Supporting Statement for a Request for OMB Review under the Paperwork Reduction Act: the Final Rule Addendum to Partial Update of the TSCA Section 8(b) TSCA Inventory Data Base, Production and Site Reports.

Table B-4: Recordkeeping and Reporting Labor Costs for Third Party Certifiers, by Activity  (2010$)
Activity
Estimated Annual Frequency[1]
Clerical Cost[2]
Technical Cost[2]
Managerial Cost[2]
Total Cost
1. Rule Familiarization
                                                                           1.00
                                                                         $0.00
                                                                       $281.55
                                                                       $333.90
                                                                          $615
2. Product Accreditation Body Application Submission
  Company Information (Name, Address, Telephone Number, and Email Address of Primary Contact; if foreign, name and address of an agent for service located in the U.S.) and Type of Composite Wood Products Applicant Intends to Certify[3]
                                                                           1.00
                                                                         $0.00
                                                                         $2.25
                                                                         $1.34
                                                                         $3.59
  Description of TPC's Experience or Ability in Product Certification and Complying with ISO/IEC Guide 65[4]
                                                                           1.00
                                                                         $0.00
                                                                        $46.74
                                                                        $34.06
                                                                        $80.80
  Description of TPC's Experience in the Composite Wood Product Industry with the Product(s) Intended to be Certified[4]
                                                                           1.00
                                                                         $0.00
                                                                        $46.74
                                                                        $34.06
                                                                        $80.80
  Description of TPC's Ability to Inspect and Properly Train and Supervise Inspectors Pursuant to ISO/IEC 17020[4]
                                                                           1.00
                                                                         $0.00
                                                                        $46.74
                                                                        $34.06
                                                                        $80.80
  Product Accreditation Subtotal

                                                                           $246
3. Laboratory Accreditation Body Application Submission
  Company Information (Name, Address, Telephone Number, and Email Address of Primary Contact; if foreign, name and address of an agent for service located in the U.S.)[3]
                                                                           1.00
                                                                         $0.00
                                                                         $2.25
                                                                         $1.34
                                                                         $3.59
  Description of TPC's Experience in Performing or Verifying Formaldehyde Testing on Composite Wood Products[4]
                                                                           1.00
                                                                         $0.00
                                                                        $46.74
                                                                        $34.06
                                                                        $80.80
  Description of TPC's Experience Operating or Using Laboratories that Comply with ISO/IEC 17025[4]
                                                                           1.00
                                                                         $0.00
                                                                        $46.74
                                                                        $34.06
                                                                        $80.80
  Description of TPC's Experience with Test Method ASTM E-1333-96 (2002) and Experience Evaluating Correlation between Test Methods[4]
                                                                           1.00
                                                                         $0.00
                                                                        $46.74
                                                                        $34.06
                                                                        $80.80
  Laboratory Accreditation Subtotal

                                                                           $246
4. Manufacturer Notification
  Third Party Certifier Number[3]
                                                                           1.00
                                                                         $0.00
                                                                         $2.25
                                                                         $1.34
                                                                         $3.59
  Withdraw from Program or Lose Accreditation[3]
                                                                           0.25
                                                                         $0.00
                                                                         $0.56
                                                                         $0.33
                                                                         $0.90
  Manufacturer Notification Subtotal

                                                                             $4
5. Recordkeeping
  List of Manufacturers and their Product Types (including Resins Used) Certified by TPC[5]
                                                                           1.00
                                                                        $19.24
                                                                        $84.47
                                                                        $50.09
                                                                       $153.79
  Results of Inspections, Audits, and Emission Tests Conducted for Each Manufacturer and Product Type[5]
                                                                           1.00
                                                                        $19.24
                                                                        $84.47
                                                                        $50.09
                                                                       $153.79
  List of the TPC's Laboratories, Test Methods (including Test Conditions and Conditioning Time), and Test Results[5]
                                                                           1.00
                                                                        $19.24
                                                                        $84.47
                                                                        $50.09
                                                                       $153.79
  Methods and Results for Establishing Test Method Correlations and Equivalence[5]
                                                                           1.00
                                                                        $19.24
                                                                        $84.47
                                                                        $50.09
                                                                       $153.79
  List of Manufacturers and Products Approved for Reduced Testing[5]
                                                                           1.00
                                                                        $19.24
                                                                        $84.47
                                                                        $50.09
                                                                       $153.79
  Recordkeeping Subtotal

                                                                           $769
6. Annual Report to Accreditation Bodies
  List of Manufacturers and their Products Certified by the TPC during the Previous Year (including Resins Used, and the Average and Range of Formaldehyde Emissions by Manufacturer, Resin, and Product Type)[6]
                                                                           1.00
                                                                         $6.41
                                                                        $28.16
                                                                        $16.70
                                                                        $51.26
  List of Noncomplying Products or Events by Manufacturer[6]
                                                                           1.00
                                                                         $6.41
                                                                        $28.16
                                                                        $16.70
                                                                        $51.26
  List of Laboratories and Test Methods Used by the TPC[6]
                                                                           1.00
                                                                         $6.41
                                                                        $28.16
                                                                        $16.70
                                                                        $51.26
  Results of Inter-Laboratory Comparison or Proficiency Testing for the Laboratories Used by the TPC[6]
                                                                           1.00
                                                                         $6.41
                                                                        $28.16
                                                                        $16.70
                                                                        $51.26
  Annual Report to AB Subtotal

                                                                           $205
7. Accreditation Board Notification
  Personnel Qualification Changes[3]
                                                                           0.50
                                                                         $0.00
                                                                         $1.13
                                                                         $0.67
                                                                         $1.79
  Procedure Changes[3]
                                                                           0.50
                                                                         $0.00
                                                                         $1.13
                                                                         $0.67
                                                                         $1.79
  Laboratory Changes[3]
                                                                           0.50
                                                                         $0.00
                                                                         $1.13
                                                                         $0.67
                                                                         $1.79
  Accreditation Board Notification Subtotal

                                                                             $5
8. EPA Notification
  Change in Name or Address of Domestic Agent (Foreign TPCs Only)[3]
                                                                           0.50
                                                                         $0.00
                                                                         $1.13
                                                                         $0.67
                                                                             $2
Domestic Total in First Year

                                                                        $2,090
Foreign Total in First Year

                                                                        $2,092
Domestic Total in Non-Reapplication Year

                                                                          $983
Foreign Total in Non-Reapplications Year

                                                                          $985
Domestic Total in Reapplication Year

                                                                        $1,475
Foreign Total in Reapplications Year

                                                                        $1,477
Notes: 1. Based on best professional judgment and rule requirements. Under the proposed rule, TPCs are required to apply for re-accreditation every three years.  As a result, application and accreditation costs are incurred every third year.  2. Based on Employer Costs for Employee Compensation wage and benefit data for private professional and business services industries (BLS 2011a). Clerical costs are estimated using data from the "office and administrative support" occupational group; technical costs are estimated using data from the "professional and related" occupational group; and managerial costs are estimated using data from the "management, business, and financial" occupational group. 3. Based on the estimated burden associated with reporting "company information" (EPA 2011a).  4. Based on the estimated burden associated with answering substantiation questions when making plant site confidentiality claims (EPA 2011a).
5. Based on the estimated burden associated with "recordkeeping" (EPA 2011a). The rule requires that records be kept for 3 years that show the production volume, plant site, and site-limited status of each reported substance. 6. Estimated as one-third of the burden associated with "recordkeeping" (EPA 2011a). Estimate based on best professional judgment.
Sources: (1) U.S. Bureau of Labor Statistics. 2011. Employer Costs for Employee Compensation: Supplementary Tables: Historical Data: December 2006 - March 2011, and (2) U.S. Environmental Protection Agency. 2011a. Supporting Statement for a Request for OMB Review under the Paperwork Reduction Act: the Final Rule Addendum to Partial Update of the TSCA Section 8(b) TSCA Inventory Data Base, Production and Site Reports.

           Appendix C  -  Costs and Benefits of Electronic Reporting

	EPA is considering requiring mandatory electronic reporting requirement for accreditation bodies and TPCs (both referred to here as respondents).  If EPA adopts this requirement for the TPC rule, respondents would submit their notifications and reports to EPA using the Central Data Exchange (CDX).  The costs and benefits to respondents and to EPA are described below.

C.1  Costs and Benefits of Electronic Reporting to Accreditation Bodies and TPCs

	All respondents incur costs in the first year to complete a subscriber agreement and register with CDX.  Some respondents will incur CDX costs in subsequent years due to employee turnover or compromised electronic signatures.  These costs are offset by reductions in reporting and recordkeeping costs due to electronic reporting.

	CDX users are assigned to one of two roles in the CDX system, an Authorizing Official or a Support Registrant.

Authorized Official (AO):  The AO is the person legally responsible for the submission.  The AO is typically a senior official for the respondent.  The AO is the only user who can start a new form, or reopen a completed form to begin the amendment process, and is the only user who can electronically sign and submit a form.  AOs can also assign Support Registrants to edit and complete forms on his or her behalf.  AOs must submit a subscriber agreement to EPA, and register with CDX.

Support Registrants:  A Support Registrant is a person designated by an AO to submit supporting documents on his or her behalf.  Support Registrants can edit a submission that is created by the AO.  Support Registrants are only allowed to edit submissions that the AO has granted him or her access.  Support Registrants do not have any access rights to create or submit a form.  Once the AO creates a form, they will provide the Support Registrant with a passphrase to access the submission and complete all sections of the form.  Once the Support Registrant has finished completing the form, the AO will access the submission, review it, and submit it.  Support Registrants must register with CDX, but do not need to submit a subscriber agreement to EPA.

	This analysis uses a simplifying assumption that an average of five employees at each respondent will register with CDX:  one manager (who will serve as AO) four technical staff members (who will serve as Support Registrants).

C.1.1  First Year Costs for Accreditation Bodies and TPCs

	Respondents will incur electronic reporting costs in the first year to submit a subscriber agreement, register with CDX, and contact EPA's CDX Help Desk.

Subscriber Agreement.  An AO must complete a subscriber agreement in order to establish their identity and their relation to the entity for which they will submit electronic documents, as well as to document a unique correlation with the device that will be used to create their electronic signature.  Users can comply with the subscriber agreement provisions in CDX either by submitting a paper subscriber agreement with a wet-ink signature, or by submitting an electronic signature agreement.

 Paper subscriber agreement.  Preparing, submitting, and filing a paper subscriber agreement is estimated to require an average of 20 minutes of time per registrant (EPA 2011b), which is assumed to be managerial time.

 Electronic signature agreement.  Preparing, submitting, and filing an electronic signature agreement is estimated to require an average of 15 minutes of time per registrant (EPA 2011b), which is assumed to be managerial time.

CDX Registration.  CDX users will need to register with CDX, which involves selecting a user name and password, providing contact information, and identifying the facility and the registrant's role at the facility.  This is estimated to take an average of 10 minutes per user (EPA 2011b).  This results in an estimate that each respondent will spend 10 minutes of managerial time and 40 minutes of technical time to register with CDX.

Help Desk.  CDX users are assumed to spend an average of 4 minutes contacting EPA's CDX Help Desk for technical support (EPA 2011b), which results in an estimate of 4 minutes of managerial time and 16 minutes of technical time per respondent.

Problem Resolution.  Three percent of respondents each year are assumed to spend an average of one hour of technical time working with EPA's CDX Help Desk to resolve problems involving their registrations or agreements (EPA 2011b).

C.1.2  Subsequent Year Costs for Accreditation Bodies and TPCs

	In subsequent years, respondents may incur electronic reporting costs due to employee turnover and compromised electronic signatures.

Employee Turnover.  It is assumed that each year 10 percent of CDX users will be replaced by new employees, who will have to comply with the subscriber agreement and/or CDX registration requirements (EPA 2011b).  Thus, in subsequent years 10 percent of AOs will spend 15 to 20 minutes of managerial time to complete a subscriber agreement.  In addition, 10 percent of all users (both managerial and technical) will spend 10 minutes to register with CDX and 4 minutes contacting EPA's CDX Help Desk.

Report Compromised Signature.  Each year 1 percent of respondents are assumed to report a compromised or surrendered electronic signature, which requires the submittal of a new subscriber agreement (EPA 2011b).  This will entail 15 to 20 minutes of managerial time to prepare, submit, and file a new agreement, and 4 minutes of managerial time to contact EPA's CDX Help Desk.

C.1.3  Savings for Accreditation Bodies and TPCs

	Electronic reporting is assumed to reduce the recordkeeping burden by 50 percent, and to eliminate the use of clerical time for reporting and recordkeeping(EPA 2009).  For ABs, this is estimated to result in average savings of 3.75 hours of clerical time in the first year and 2.75 hours in subsequent years, as well as 1 hour of technical time and 0.5 hours of managerial time in all years.  For TPCs, this is estimated to result in average savings of 4.75 hours of clerical time, 2.5 hours of technical time, and 1.25 hours of managerial time per year.

	Electronic reporting also has the following benefits for respondents:

 The number of forms that need to be resubmitted because they are incomplete or invalid should be greatly reduced because forms cannot be submitted via CDX if any required fields are incomplete, or if the submission fails internal validation checks;

 All of the respondent's relevant staff will be able to access the CDX forms easily and directly input their information, so the system will facilitate easier internal review by the respondent prior to submission;

 Filling out a form similar to one previously submitted will be faster with electronic reporting, as the respondent will already have an electronic copy of the earlier form to edit rather than having to fill out a new form; and

 All routine correspondence with the Agency (including submission of supporting documents) will be via CDX, which saves time and delivery costs and reduces delays in EPA's review.

EPA has not estimated the value of these additional savings to respondents.

C.1.4  Changes in Costs to Accreditation Bodies and TPCs due to Electronic Reporting

	As shown in Table C-1, accreditation bodies would accrue savings of $99 to $177 per year (depending on whether it is the initial year, reapplication year, or non-reapplication year).  TPCs would accrue savings of $259 to $337 per year (depending on whether it is the initial year, a reapplication year, or non-reapplication year), as shown in Table C-2.  The total savings for U.S. accreditation bodies would be $1,193 per year using a 3 percent discount rate and $1,146 per year using a 7 percent discount rate, as shown in Table C-3.  As shown in Table C-4, the total savings for U.S. TPCs would be $2,852 per year using a 3 percent discount rate and $2,754 per year using a 7 percent discount rate.

	As shown in Table C-5, electronic reporting via CDX would reduce the annualized costs of the rule to U.S. accreditation bodies and respondents from $33,535 to $29,490 per year using a 3 percent discount rate, a savings of $4,045 per year.  Using a 7 percent discount rate, costs are estimated to decrease from $34,443 to $30,542, a savings of $3,900 per year.  There are additional unquantified improvements in efficiency and higher data quality due to electronic reporting.

	As shown in Table C-6, electronic reporting via CDX would reduce the average total burden hours for all 61 domestic and foreign respondents from 1,421 hours to 1,029 hours per year, a savings of 392 hours per year.

Table C-1: Incremental Cost of Electronic Reporting Requirements: Burden and Cost Per Accreditation Body
Activity
Per Activity Burden Hours
Number of Annual Activities
(d)
 Total Burden (hours)
Total Cost

Clerical
Technical
Managerial

Clerical
($25.65/hr)
Technical
($56.31/hr)
Managerial
($66.78/hr)
Total

(a)
(b)
(c)

(e) = (d)*{(a)+(b)+(c)}
(f)
(g)
(h)
(i)
1. CDX Electronic Reporting (First Year)
  Electronic Subscriber Agreements (domestic firms)
                                       -
                                       -
                                                                          0.250
                                                                           1.00
                                                                          0.250
                                       -
                                       -
                                                                         $16.70
                                                                         $16.70
  Paper Subscriber Agreements (foreign firms)
                                       -
                                       -
                                                                          0.330
                                                                           1.00
                                                                          0.330
                                       -
                                       -
                                                                         $22.04
                                                                         $22.04
  CDX Registration
                                       -
                                                                          0.670
                                                                          0.170
                                                                           1.00
                                                                          0.840
                                       -
                                                                         $37.73
                                                                         $11.35
                                                                         $49.08
  Help Desk
                                       -
                                                                          0.270
                                                                          0.070
                                                                           1.00