-  Activities Affected by the Final NPDES Electronic Reporting Rule
 Introduction
The final rule will update the way regulated entities, authorized NPDES programs, and EPA provide and share NPDES information. EPA and state authorized NPDES programs will update their IT systems so that regulated entities can electronically submit NPDES information, and EPA and the states can share the information. When the rule is fully implemented, regulated entities will submit their information to their authorized NPDES program electronically. Authorized NPDES programs will share that data with EPA, and will also share with EPA the data they generate. During the initial implementation period (within five years after the effective date of the rule), some regulated entities might be required to submit NOIs, DMRs, and program reports both electronically and on paper, depending on the reporting requirements set out in their permits.
After implementation, the rule will produce significant annual savings. During implementation, the costs will exceed the savings, as described below. Table 3-1 identifies which entities incur costs and cost savings associated with the implementation phase and ongoing administration of the NPDES program under the rule.
Table 3-1: Distribution of Savings and Costs of the Rule

                               Regulated Entity
                           Authorized NPDES Program
                                      EPA
Updating IT systems to share information

                                     Costs
                                     Costs
Electronic reporting during transition
                                     Costs

                                     Costs
Switching to electronic reporting systems
                                 Savings/Costs
                                Savings/Costs

Sharing NPDES information electronically

                                 Savings/Costs
                                 Savings/Costs

The activities necessary to update how regulated entities and state authorized NPDES programs submit information to and share information with EPA are:
Authorized NPDES program and EPA implementation of an electronic reporting system for submitting regulated entity data;
Authorized NPDES program and EPA implementation of an electronic reporting system for submitting authorized NPDES program data to EPA;
Authorized NPDES programs making decisions regarding their initial recipient status;
Authorized NPDES programs demonstrating their attorneys general accept electronic signatures in lieu of physical signature, thereby certifying compliance with EPA's Cross Media Electronic Reporting Rule (CROMERR);
Authorized NPDES programs preparing implementation plans and EPA review and approval of those plans;
Authorized NPDES programs updating their Memoranda of Agreement with their Regional Administrator;
Authorized NPDES program and EPA developing criteria for temporary and permanent waivers from electronic reporting;
Authorized NPDES program and EPA coordination via training webinars;
Authorized NPDES program entering newly shared data for all regulated entities;
EPA assessing participation rates and, where appropriate, conducting oversight using its CWA authority and ICR to compel NPDES-regulated entities to utilize their NPDES program's electronic reporting system; and,
Authorized NPDES programs and EPA modifying permits to require electronic submissions.

Regulated entities and authorized NPDES programs will need to make changes in order to use the updated data bases and reporting tools. The activities required to use the updated systems are:
Regulated entity registration for and maintenance of user accounts in CDX or the state authorized NPDES program electronic system and submission of electronic signature agreements;
Regulated entity training;
Regulated entity submission of electronic NOIs, DMRs, and program reports; and,
Authorized NPDES program electronic submission of programmatic Appendix A data to EPA.

When electronic submission is operational, regulated entities and authorized NPDES programs will experience ongoing savings from operational efficiencies. During the first five years, there will be costs associated with the initial development and implementation of electronic reporting for regulated entities and authorized NPDES programs, as well as submittal of programmatic data elements to ICIS-NPDES by the authorized NPDES program. This section outlines: 1) the activities required to establish electronic reporting systems, 2) the requirements of electronic reporting during the implementation period, and 3) ongoing savings and costs associated with preparing and sharing all required NPDES data.
Updating the Reporting Process
Updating the NPDES information flow will allow state authorized NPDES programs and EPA to share information through the internet and have a central repository of NPDES information. Currently, NPDES information is managed in ICIS-NPDES. Authorized NPDES programs use three methods to submit data to ICIS-NPDES:
Direct Entry: Authorized NPDES programs using direct entry enter data into EPA data systems directly.
Batch Upload: Authorized NPDES programs using batch upload employ their state system to track regulated entities and their own activities under the NPDES program. This NPDES information is periodically uploaded to EPA data systems.
Hybrid: Authorized NPDES programs using hybrid approaches enter most data over the web, with the DMR component of the NPDES permit batch uploaded to EPA data systems periodically.

The final rule will require EPA and state authorized NPDES programs to capture all required data, establish electronic reporting systems, and for states to certify that their systems are CROMERR-compliant. The rule does not preclude authorized NPDES programs from maintaining their own information systems. EPA expects that authorized NPDES programs will move all regulated entities to electronic reporting within five years of the effective date of the rule. This section discusses the changes required by the rule.

State Authorized NPDES program and EPA Implementation of a Data Exchange
To implement electronic reporting, EPA and the state authorized NPDES programs will need to establish and operate an IT system organized so that state authorized NPDES program data systems and EPA's ICIS-NPDES operate as a coordinated CWA program management system that can work together. The system will use existing technology and standards from the National Environmental Information Exchange Network as a basis for the new data exchange. The Exchange Network allows network members to share environmental information over the internet in two directions. Figure 3-1 shows how states and EPA can access each other's information through the network.

Figure 3-1: The Exchange Network

Each state currently has a network node allowing states and EPA to access and share information over the internet. The final rule will leverage this capability to reduce the costs associated with data entry and transfer, ultimately improving access to NPDES information for program management.
State system modification costs depend on whether the state NPDES system already uses the Exchange Network. States that have a preexisting data flow with EPA only need to map the data elements to the appropriate fields in their own systems. EPA currently provides a downloadable tool that assists authorized NPDES programs in the mapping process. Authorized NPDES programs that do not use the Exchange Network will need to configure a full data flow. To facilitate these processes, EPA will offer webinars outlining the changes required by the rule and providing solutions for common problems.
Although regulated entities and authorized NPDES programs are both responsible for generating NPDES data, EPA is responsible for creating and maintaining electronic reporting tools, such as NetDMR, and the central repository of NPDES information  -  ICIS-NPDES. The NetDMR and NeT systems already exist, but will need enhancement to accommodate the all of the data defined in Appendix A, and to accommodate the higher submission volumes that will result from the final rule. EPA will also create a new electronic tool allowing regulated entities to submit their program reports online. Once these tools are implemented, EPA will incur operating and maintenance costs into the future.
State authorized NPDES programs may develop and operate their own reporting tools to meet rule requirements. Because EPA will offer national tools supporting each of the regulated entity submissions to permit authorities, state system changes are not required. However, the analysis assumes that states currently operating their own systems will bear a cost to expand these systems to store all Appendix A data. It also assume that these states will bear ongoing costs to manage the transfer of data from their systems to EPA and to provide ongoing training and technical support to regulated entities using their systems.
Compliance with the Cross Media Electronic Reporting Rule
Authorized NPDES programs need to assure that the newly required electronic documents are legally equivalent to hardcopy documents by meeting the requirements of EPA's Cross Media Electronic Reporting Rule (CROMERR). CROMERR requires authorized NPDES program Attorneys General to certify that their laws provide sufficient legal authority to implement electronic document receiving systems and enforce the affected programs using those documents in lieu of the hardcopy reports physically signed by the regulated entity. In addition, CROMERR requires documenting how the receiving system meets CROMERR criteria and any other documentation requested by the EPA Administrator that must be provided before the state authorized NPDES program can use electronic systems to receive regulated entities' information and to manage its own NPDES information.
Supplying Facility, Limit and Limit Set data
In order for the electronic system to properly route regulated entity information between state authorized NPDES programs and EPA, and to automate the comparison of DMR data to the limits and limit sets in the permit, authorized NPDES programs will need to share their facility information, limits and limit sets with EPA. Currently, much of the monitoring information for nonmajor permits is maintained on paper files or electronically in state computer systems and is not being passed to ICIS-NPDES. EPA does not have detailed information regarding the authorized NPDES program information systems, and whether or not they conform to the requirements of the final rule. For that reason, EPA assumes each authorized NPDES program will manually enter appropriately formatted limit and limit set information into the new system within one year of the effective date of the rule so that regulated entities will be able to use the system when the rule requires them to sign up for electronic accounts during that time. In reality, many states may have already automated much of this data, in which case their costs will be less than estimated in this analysis.
Additional Implementation Activities
As part of updating the reporting process, authorized state NPDES programs and EPA will need to undertake several additional implementation activities, which include:
Making decisions regarding initial recipient status;
Preparing and reviewing/approving implementation plans;
Updating Memoranda of Agreement with Regional Administrators;
Developing criteria for temporary and permanent waivers from electronic reporting;
Undertaking training webinars;
Conducting oversight; and,
Modifying permits (to require electronic submissions).

This analysis includes the cost of all of these activities, using assumptions outlined in detail in Section 4.
Electronic Reporting during Transition
As a means to "fill in the gaps" where NPDES-regulated entities are not yet reporting electronically, EPA will use its existing authority under the CWA along with current technology and an ICR to require NPDES-regulated entities to report electronically. As a result, during the initial implementation period (within five years after the effective date of the rule), some regulated entities might be required to submit data both electronically and on paper. The conditions under which this "dual reporting" could occur are the following:
The regulated entity's authorized NPDES program has an electronic reporting system in place;
The regulated entity's permit (or other control mechanism) explicitly requires paper reporting;
The conditions that require paper reporting are not changed outside of the normal permit cycle (e.g., through the minor modification process); and
The authorized NPDES program does not use its enforcement discretion to refrain from enforcing the conditions that explicitly require paper reporting.

These conditions are likely to occur only for a small number of regulated entities and would last only until the permit is re-issued with electronic reporting requirements on the normal permit cycle. Still, this analysis accounts for this potential for dual reporting for a percentage of facilities during the transition period.
Using the Updated System
The updated system will change the way information is shared by regulated entities, authorized NPDES programs, and EPA. These changes will increase the operational efficiency of the NPDES program by eliminating the need for authorized NPDES programs to transcribe paper reporting documents into the system of record and the manual comparison of facility DMRs to the limits and limit sets established in the permit. Furthermore, these changes will reduce the amount of coordination needed between state authorized NPDES programs and EPA to produce the annual NPDES reports required by 40 CFR 123.45(c). This section describes the assumptions and sources of savings and costs associated with using the updated systems.
Regulated Entity Registration and Training
To use the electronic reporting system for NetDMR and NeT, individual regulated entities will need to set up accounts, either on the Central Data Exchange (CDX), EPA's node on the Exchange Network, or a similar data portal provided by their authorized NPDES program. To set up the account, regulated entities mail their authorized NPDES program an electronic signature agreement (ESA) stating that their electronic PIN number is the legal equivalent of their written signature. For construction stormwater general permit reports (e.g., NOIs), however, the final rule allows NPDES programs to use a "hybrid approach." The hybrid approach would use automatic identification and data capture technologies to eliminate the need for construction operators to obtain and maintain a digital signature.
NetDMR or authorized NPDES program eDMR systems are sufficiently complex that many regulated entities will need training to effectively use them. EPA currently offers an online training session explaining how to submit DMRs through the NetDMR tool. The training informs regulated entities about login procedures, uploading their DMR information, and how their designated testing laboratory can upload their DMR monitoring information directly into the NetDMR system. Experience with currently operating systems has shown that training is not necessary for submitting NOIs or program reports electronically, as these tools are less complicated. General permit facilities would also use these less complicated tools to submit DMRs and, therefore, not require training.
Table 3-2 shows the registration and training requirements for regulated entities. In addition, some small entities currently use a personal email address on NPDES forms. These entities would need to acquire a new, business email address as part of the registration process. Finally, EPA's electronic reporting systems include 90-day password reset requirement. The password reset requirement is not a requirement of the rule, but a long standing EPA security requirement that is used for all of the agencies internal and external systems. This requirement means that regulated entities that report using EPA's systems less frequently than every 90 days will need to reset their password when they report. Entities that report more frequently will maintain their active password as part of the normal course of reporting. Information is not available on which, if any, state electronic reporting systems might include similar password reset requirements. Therefore, the analysis considers the burden and cost of password resets only for entities using EPA systems (either because the authorized NPDES program is a direct user of EPA system or because EPA itself is the authorized NPDES program).

     Table 3-2: Registration and Training Requirements by NPDES Subprogram
                                  Subprogram
                                  Permit Type
                               CDX Registration
                                      ESA
                                NetDMR Training
Non-POTWs (Industrial, Agriculture, and Stormwater)
        Standard Industrial Dischargers (includes CWA §316(b) Filers)
                                                               Individual Major
                                      Yes
                                      Yes
                                      Yes

                                                            Individual Nonmajor
                                      Yes
                                      Yes
                                      Yes

                                                               General Nonmajor
                                      Yes
                                      Yes
                                      No
Significant Industrial Users (SIUs) In Municipalities without Pretreatment Program
                                      Yes
                                      Yes
                                      No
                    Concentrated Animal Feeding Operations
                                                            Individual Nonmajor
                                      Yes
                                      Yes
                                      No

                                                               General Nonmajor
                                      Yes
                                      Yes
                                      No
                   Industrial & Construction Stormwater

                                                                     Industrial
                                                               Individual Major
                                      Yes
                                      Yes
                                      Yes

                                                            Individual Nonmajor
                                      Yes
                                      Yes
                                      Yes

                                                               General Nonmajor
                                      Yes
                                      Yes
                                      No
                                                                   Construction
                                                               Individual Major
                                      Yes
                                      Yes
                                     No[a]

                                                            Individual Nonmajor
                                      Yes
                                      Yes
                                     No[a]

                                                               General Nonmajor
                                    Yes[b]
                                    Yes[b]
                                      No
                             Municipal Stormwater

                                                                   Phase I MS4s
                                                               Individual Major
                                      Yes
                                      Yes
                                      Yes

                                                               General Nonmajor
                                      Yes
                                      Yes
                                      No
                                                                  Phase II MS4s
                                                            Individual Nonmajor
                                      Yes
                                      Yes
                                      Yes

                                                               General Nonmajor
                                      Yes
                                      Yes
                                      No
POTWs and TWTDSs (may have a CSS or a SSS, may also file more than one report)
                                                                POTWs with CSSs
                                                               Individual Major
                                      Yes
                                      Yes
                                      Yes

                                                            Individual Nonmajor
                                      Yes
                                      Yes
                                      Yes

                                                               General Nonmajor
                                      Yes
                                      Yes
                                      No
                                                POTWs with SSSs only and TWTDSs
                                                               Individual Major
                                      Yes
                                      Yes
                                      Yes

                                                            Individual Nonmajor
                                      Yes
                                      Yes
                                      Yes

                                                               General Nonmajor
                                      Yes
                                      Yes
                                      No
                           POTW NPDES Report Filers

              Biosolids/Sewage Sludge and Pretreatment Program Report Filers[c]
                                      n/a
                                      n/a
                                      n/a
[a] 1% of construction stormwater individual permits that require DMRs due to an enforcement action would require training.
[b] Construction general permit facilities that use a hybrid approach would not need electronic signatures.
[c] Registration and training are captured by CSSs POTWs, SSSs POTWs, TWTDSs, or standard industrial dischargers.

Regulated Entity Discharge Monitoring and Program Report Submission
Currently, regulated entities submit most of their DMRs and program reports in hard copy through the mail. The authorized NPDES program receives these reports and, for major regulated entities, manually transcribes the DMRs and some data elements from the program reports into ICIS-NPDES or authorized NPDES program's system. The authorized NPDES program then archives the paper files. The final rule will require regulated entities to submit these reports electronically. Electronic reporting by regulated entities will eliminate paper and postage costs as well as the time required to physically transfer paper forms from regulated entities to the authorized NPDES program and then enter the required data into authorized NPDES program systems or ICIS-NPDES. Some EPA Regions and other authorized NPDES programs send pre-populated DMR forms to regulated entities. Under the final rule this activity will also be unnecessary and the associated paper and postage costs will be eliminated.
Additional Required Data from the Authorized NPDES Program
As discussed in Section 1, the final rule will increase the amount of data authorized NPDES programs are required to share electronically with EPA. The rule requires authorized NPDES programs to enter into an electronic information system any of the data elements listed in Appendix A that are not submitted electronically by their regulated entities. This requirement will apply to major, nonmajor, and general permits. Some of this information was previously available from the regulated entity and was manually entered into ICIS-NPDES. Other information was previously submitted by the regulated entity in hardcopy form and stored at the authorized NPDES program until needed for compliance oversight or annual reporting to EPA. With electronic reporting, regulated entity information will electronically flow into the authorized NPDES program's data system, eliminating the need for manual data entry and resulting in savings to the authorized NPDES program. These savings might be partially offset by the need for authorized NPDES programs to enter programmatic information, such as: 1) regulated entity data previously stored in hardcopy form; or 2) compliance monitoring, inspection, or enforcement information that was not previously entered into ICIS-NPDES. The cost of submitting these data to ICIS-NPDES is partially mitigated by auto-populating specific fields, such as the date an electronic report is received.
For example, in order to compare DMRs to their permits' required limits, the authorized NPDES program will need to enter all limits and limit sets into ICIS-NPDES. Currently this information is only required for major permits. Under the final rule, this information will be required for all permit types. Individual permits will need their specific limits and parameters entered by the authorized NPDES program permit writer. For general permits, the task is simplified by bundled limit sets that permit writers can apply to all facilities covered by the same general permit. For example, offshore drilling general permits will be able to use all limit sets pertaining to that activity by selecting the bundled offshore drilling limit sets from a dropdown menu.
Replacing the Annual Non-Compliance Report, Quarterly Non-Compliance Report, and Semi-Annual Statistical Summaries with the New National Non-Compliance Report
Existing CWA regulations (40 CFR 123.45) require that authorized NPDES programs submit to EPA annual, quarterly, and semi-annual reports regarding the compliance status of regulated entities in their jurisdiction. To meet this requirement, state authorized NPDES programs submit their non-compliance information to the Regional Administrator, who submits them to EPA headquarters. Under the final rule, this information will be readily available to EPA directly from ICIS-NPDES, obviating the need for state authorized NPDES programs to compile and submit the information. Therefore, the final rule will eliminate this reporting requirement, resulting in savings for state authorized NPDES programs and EPA Regions. The final rule will also replace the annual, quarterly, and semi-annual reports with a National Non-Compliance Report that EPA headquarters will develop, resulting in savings for states, EPA Regions and EPA headquarters. EPA savings will be partially offset by the headquarters effort required to program and produce the new National Non-Compliance Report.
Summary
Following implementation, the rule will result in ongoing savings for both regulated entities and authorized NPDES programs due to the operational efficiencies of electronic reporting, reduced data errors, and eliminating postage and paper costs. Once authorized NPDES programs establish electronic reporting systems, there will be net savings driven by eliminating DMR and program report data entry, in addition to operational efficiencies from improved data quality and no longer having to mail, receive, or process paper reports. ICIS-NPDES and authorized NPDES program systems will be able to automatically compare all DMR monitoring information to the limits of the respective NPDES permits and flag non-compliance, thus simplifying EPA and authorized NPDES program compliance oversight and rapidly identifying noncompliance that may threaten the health of receiving waters. Establishing a single, authoritative repository of NPDES information, will eliminate the need for the recurring effort and cost of developing and publishing periodic non-compliance reports from authorized NPDES programs. EPA headquarters will incur ongoing costs of implementing and maintaining the IT infrastructure necessary for electronic reporting, as well as publishing the new National Non-Compliance Report. The methodology used to estimate these savings and costs is discussed in Section 4. The benefits of improved ICIS-NPDES information associated with this rule are presented in Section 6.

 -  Estimating the Economic Impacts of the Final NPDES Electronic Reporting Rule
 Introduction
This section describes how the savings and costs of the final rule were estimated. These savings and costs are experienced by regulated entities, authorized NPDES programs, and EPA headquarters. The estimates are used to calculate the total net savings of the final rule and to determine the impact of the rule on small businesses in Section 5. Estimates of the cost of the rule are developed for four categories: 1) implementation; 2) data entry; 3) submission processing; and 4) submission. To determine the impacts on each category, EPA solicited states, Regions, and program experts to identify the burden associated with the current data flow and reporting processes, and identify how these processes would change. The following sections discuss how the changes were monetized and the total savings and costs associated with the final rule.
Estimating the incremental savings and costs involved the following steps:
   * Determine EPA and authorized NPDES program costs associated with updating the way NPDES information is shared;
   * Determine authorized NPDES program savings and costs associated with changes in data entry of NPDES information;
   * Determine authorized NPDES program savings associated with changes in processing of NPDES information;
   * Determine regulated entity savings and costs associated with electronic submission of NPDES information; and,
   * Determine other implementation costs for regulated entities and authorized NPDES programs required by or resulting from compliance with the final rule.

Section 4.2 shows the labor costs used in the analysis. Section 4.3 provides a description of costs associated with updating information sharing among authorized NPDES programs and EPA. Section 4.4 discusses the savings and costs associated with using the updated systems. Section 4.5 discusses EPA's planned implementation phase-in approach, as well as the savings/cost schedules and return on investment for the final rule.
The costs and savings associated with the final rule include:
 Updating the IT systems;
 Data processing needed for authorized NPDES programs to accept electronic reporting from NPDES regulated entities;
 Data entry for regulated entity electronic reporting during the transition;
 Data processing needed to ensure the transfer of all required NPDES data from authorized NPDES programs into ICIS-NPDES;
 Reduced data entry for authorized NPDES programs once regulated entities enter data directly into the electronic systems;
 Elimination of paper mailing and processing of DMRs and permits; and
 Elimination of ANCR, QNCR, and SASS reports.

As shown in Table 4-1, savings and costs are incurred by regulated entities, authorized NPDES programs, and EPA.
Table 4-1: Distribution of Savings and Costs of the Rule

Regulated Entity
Authorized NPDES Program
EPA
Updating IT systems to share information

                                     Costs
                                     Costs
Electronic reporting during transition
                                     Costs

                                     Costs
Switching to electronic reporting systems
                                 Savings/Costs
                                 Savings/Costs

Sharing NPDES information electronically

                                 Savings/Costs
                                 Savings/Costs

Three significant baseline assumptions are made for the savings and cost analysis. The first is that currently there is full compliance with existing data requirements. Although some authorized NPDES programs may already be submitting information beyond those requirements, it is not possible to accurately account for that additional information at this time. Where authorized NPDES programs are reporting to ICIS-NPDES more data than is currently required, the analysis may overestimate incremental costs.
The second major assumption is to disregard some of the impact of existing state authorized NPDES program electronic reporting systems. EPA acknowledges that some states are currently using electronic reporting systems. The analysis incorporates available data about the extent to which regulated entities are using electronic reporting systems to submit DMRs (e.g., the data indicate that 10% of regulated entities in Alabama are electronically submitting DMRs). However, some states may also have electronic reporting systems for other data (e.g., NOIs). Where regulated entities are already submitting data other than DMRs electronically through state systems, the analysis may overestimate savings and implementation costs for both the regulated entity and authorized NPDES program.
The third major assumption is that, as a result of the inclusion of state-specific waiver provisions developed under the rule (see Section 4.3.3), a total of 1% of regulated entities will have permanent or temporary waivers from electronic reporting in any given year. The analysis applies this waiver percentage across subprograms, data families, and permit types (e.g., major, nonmajor). Those regulated entities receiving waivers are excluded from the analysis' calculation of savings and implementation costs. Authorized NPDES programs would bear the burden of data entry for these regulated entities. The net impact of the waiver percentage is to decrease total net savings (i.e., an increasing percentage of facilities receiving waivers decreases the estimated net savings).
Labor Costs
To estimate the cost associated with data entry, processing, and submission activities (Section 3), the analysis uses 2014 hourly wage rates for three job categories: managerial, programmer/technical, and data clerk/administrative; each of which include fringe benefits and overhead. Average wage data for these categories are based on the Bureau of Labor Statistics' Employer Costs for Employee Compensation in December 2014, which has separate wage estimates for government and private sector workers.
More specifically, the managerial labor rate for government workers is the BLS national average in the management, professional, and related occupational group. The managerial labor rate for private industry workers is the BLS national average in the management, business, and financial occupational group. Its use in this analysis includes as the average hourly wages for staff who plan, direct, or coordinate electronic data processing, information systems, systems analysis, and computer programming.
The programmer/technical labor rate for each sector is the BLS national average in the professional and related occupational group. Its use in this analysis includes as the average hourly wages for staff who convert project specifications and statements of problems and procedures to detailed logical flow charts for coding into computer language; develop and write computer programs to store, locate, and retrieve specific documents, data, and information; and may program web sites.
The data clerk/administrative labor rate for each sector is the BLS national average in the office and administrative support occupational group. Its use in this analysis includes as the average hourly wages for staff who compute, classify, and record numerical data to keep financial records complete; perform any combination of routine calculating, posting, and verifying duties to obtain primary financial data for use in maintaining accounting records; and may also check the accuracy of figures, calculations, and postings pertaining to business transactions recorded by other workers.
The Bureau of Labor Statistics provides hourly wage and benefit rates (e.g., paid leave and insurance). Based on information provided by the chemical industry and chemical industry trade associations, an additional loading factor of 17% is applied to hourly wages and benefits for general overhead. (See Table 4-2).
                    Table 4-2: Deriving Loaded Hourly Costs
                       Cost Components, by Job Category
                        BLS Government Hourly Wage Rate
                         BLS Industry Hourly Wage Rate

Managerial

Hourly Wage
                                                                        $35.52
                                                                        $44.52
Benefits
                                                                        $17.72
                                                                        $22.04
Overhead
                                                                         $6.04
                                                                         $7.57
Managerial Fully Loaded Wage Rate Per Hour
                                                                        $59.28
                                                                        $74.13
Programmer/Technical

Hourly Wage
                                                                        $35.16
                                                                        $34.63
Benefits
                                                                        $17.16
                                                                        $14.87
Overhead
                                                                         $5.98
                                                                         $5.89
Programmer/Technical Fully Loaded Wage Rate Per Hour
                                                                        $58.30
                                                                        $55.39
Data Clerk/Administrative

Hourly Wage
                                                                        $18.08
                                                                        $16.52
Benefits
                                                                        $12.27
                                                                         $7.46
Overhead
                                                                         $3.07
                                                                         $2.81
Data Clerk/Administrative Fully Loaded Wage Rate Per Hour
                                                                        $33.42
                                                                        $26.79
Cost of Updated Information Sharing among Authorized NPDES Programs and EPA
As described in Section 3, implementing the rule will require state authorized NPDES programs and EPA to establish an electronic reporting system. As shown in the data flow diagram in Section 1 (Figure 1-2), the data capture process begins with regulated entities submitting their data into the electronic system provided by their authorized NPDES program or EPA. Several state authorized NPDES programs  receive DMR information through state-operated eDMR systems that are different from EPA's NetDMR in that they only send regulated entity data to the state authorized NPDES program, whereas NetDMR sends regulated entity data to both the state authorized NPDES program and EPA.
As discussed in Section 3, authorized NPDES programs enter data into ICIS-NPDES using direct, hybrid, and batch methods. Direct users manage their programmatic information in ICIS-NPDES and use EPA's electronic reporting tools to capture regulated entity submissions. Hybrid authorized NPDES programs use ICIS-NPDES for some information and batch upload their DMR information. Batch authorized NPDES programs manage their information in state systems, and batch upload all of their information to EPA. For these systems to accept electronic data from the regulated entities and transfer that information between EPA and authorized NPDES programs, alterations to both state and EPA IT systems are necessary. EPA will provide optional electronic reporting tools for regulated entities and authorized NPDES programs to use, and will provide a central repository housing all nationally required NPDES information. This section details the estimated implementation costs for authorized NPDES programs and EPA to set up this system.
Electronic Reporting Tool Implementation Costs
Before regulated entities can use the electronic reporting system, authorized NPDES programs and EPA will need to provide the necessary reporting tools. The tools EPA will develop include augmented versions of the current NeT and NetDMR systems. Cost estimates for IT system modifications were derived by comparing the architecture of the current system against the requirements of the rule. Table 4-3 presents EPA's estimated cost of implementation for the new tools. It also includes the cost to add the new Appendix A data elements to ICIS-NPDES. Table 4-3 also shows EPA's estimated annual operations and maintenance cost, discussed further in Section 4.3.2.
      Table 4-3: EPA Implementation Costs for Electronic Reporting Tools
                                Cost Categories
                                Total Cost ($)
                            Initial Implementation
System Enhancements
                                                                    $8,023,000
Adding Data Elements
                                                                    $1,680,000
Total
                                                                    $9,703,000
                       Annual Operations and Maintenance
Enhancements to NetDMR
                                                                      $109,000
NeT: NOI functionality
                                                                      $423,000
NeT: Program Report functionality
                                                                      $423,000
Total
                                                                      $955,000

Implementation costs for authorized NPDES programs will vary depending on whether the state is a batch user and what electronic tools the state currently uses. Batch system databases will need to be expanded to store all Appendix A data. Because EPA does not have independent estimates of the comparable system costs for each state, tribe, and territory, EPA's estimate of costs for those NPDES-authorized programs to expand their databases is based on EPA's costs to add data elements to ICIS-NPDES, or $1.68 million per state, as shown in Table 4-3.  With 21 states adding data elements, the total database expansion cost is $35.3 million dollars. This estimate is conservative as several states already manage some of the new Appendix A data elements.
The final rule deletes latitude and longitude metadata (e.g., Facility Site Source Map Scale Number, Facility Site Horizontal Accuracy Measure) from Appendix A. Instead, EPA is requiring that latitude and longitude data use the World Geodetic System (WGS) 84 standard coordinate system. WGS84 is the modern worldwide standard for use in cartography, geodesy, and navigation. This coordinate system is currently the reference system being used by the Global Positioning System and is accurate within 1 meter. States that collect latitude and longitude on older coordinate systems (e.g., 1927 North American Datum) will need to convert their latitude and longitude to the newer, modern WGS84 coordinate system before they can share data with EPA. Because data are not available on which states might use older coordinate systems, the analysis assumes that all batch and hybrid states will need to convert to WGS84. The analysis assumes that the switch to WGS84 will require 48 hours per state of programming effort, including identifying and converting existing non-WGS84 data and setting up systems to convert newly entered non-WGS84 data, for a per state implementation cost of $2,800. Conservatively assuming all 26 batch and hybrid states must convert coordinate systems, the total cost is $72,800.
State implementation costs also vary based on whether the state has a CROMERR certified data system already in place. Certifying that the state system is CROMERR compliant requires the state Attorney General to review the applicable state laws to ensure that the electronic documents required under the rule are the legal equivalent to the hardcopy documents currently collected. The analysis estimates that cost to be approximately $41,100 per state. The total cost of CROMERR certification is $411,000 dollars.
After implementation, EPA envisions that regulated entities will use EPA or third party provided software (such as fillable PDFs) to submit NOIs, DMRs, or program reports to EPA and state authorized NPDES programs. Therefore, once data standards are established for each data element, state authorized NPDES programs will need to reconfigure their exchange templates (a piece of computer software that matches fields in the state database to fields in ICIS-NPDES) to allow the new NPDES data to flow between the state system and ICIS-NPDES. EPA technical experts expect data element mapping to require 120 hours for reports of more than 40 data elements and 60 hours for reports of less than or equal to 40 data elements. Furthermore, for states already using NetDMR, EPA expects the data mapping to require only 40 hours as these states already have the basic data structure mapped. Note that states are not already using the federal NeT system for NOIs and program reports, so there would not be similar reduced burdens. States will need to create one exchange template capable of handling all DMR data elements and a separate exchange template for NOIs and program reports for each subprogram for which the state is the authorized NPDES program. Therefore, individual state costs vary. The total cost to create all exchange templates is $1.9 million dollars.
Table 4-4 summarizes the costs to authorized NPDES programs to implement electronic reporting tools. Inclusion of many of these costs in the analysis is conservative because the rule does not require authorized NPDES programs to develop their own data systems. Some authorized NPDES programs may choose to use EPA's tools. Furthermore, these costs assume authorized NPDES programs would not pursue further enhancements to their data systems in the absence of the rule. Table 4-4 also shows estimated annual operations, maintenance, and support cost, discussed further in Section 4.3.2.
Table 4-4: State Authorized NPDES Program Implementation Costs for Electronic Reporting Tools
                                Cost Categories
                               Number of States
                                 Unit Cost ($)
                                Total Cost ($)
                            Initial Implementation
Adding Data Elements
                                      21
                                                                    $1,680,000
                                                                   $35,280,000
Converting Coordinate Systems
                                      26
                                                                        $2,800
                                                                       $72,800
CROMERR Certification
                                      10
                                                                       $41,100
                                                                      $411,000
Data Mapping
                                                                    $1,886,000
Total
                                                                   $37,650,000
                  Annual Operations, Maintenance, and Support
Managing Data Transfer to EPA
                                      26
                                                                      $121,258
                                                                    $3,153,000
Training and Technical Support
                                      47
                                                                      $242,516
                                                                   $11,398,000
Total
                                                                   $14,551,000

Electronic Tool Operations and Maintenance Cost
As shown in Table 4-3, EPA will have ongoing annual costs to operate and maintain the necessary changes in the ICIS-NPDES system. Operations include accepting data from regulated entities, receiving data from authorized NPDES programs, and sending EPA data to the state authorized NPDES programs. Maintenance includes routine database refreshes, updates, and licensing. The annual cost of EPA activities newly required to support the rule are estimated at $955,000.
As shown in Table 4-4, the analysis assumes states currently operating their own systems will bear an ongoing annual cost to manage transfer of data between their systems and EPA's. This cost is based on an estimate of 1 full-time equivalent (FTE) of programmer/technical labor per state per year. The analysis also assumes that each authorized NPDES program, whether they operate their own system or use EPA's tools, will bear an ongoing annual cost to provide training and technical support to regulated entities. This cost is likely to vary by state. In comments on the proposed rule, states estimated the labor required for these activities would be from 0.3 to 2 FTEs per state per year. To be conservative, the analysis uses the upper bound of this range and assumes 2 FTEs of programmer/technical labor per state per year. The total incremental annual cost to states for operations, maintenance, and support activities is estimated at $14.6 million per year.
Other Implementation Costs
As part of updating the reporting process, authorized state NPDES programs and EPA will need to undertake several other implementation activities, in addition to upgrading electronic systems. Table 4-5 summarizes these costs, which were developed using assumptions discussed in the paragraphs below. Although many of these activities occur within the first year after the effective date of the rule, others take place later during rule implementation or recur intermittently. The costs shown in Table 4-5 are undiscounted and account for recurrence only of certain activities (i.e., EPA oversight). Section 4.5 provides further details regarding assumptions about implementation timing and the impact of timing and discount rates on return on investment.
       Table 4-5: Administrative Costs to Implement Electronic Reporting
                                Cost Categories
                                      EPA
                           Authorized NPDES Programs
Training Webinars
                                                                     $21,000[a]
                                                                       $24,700
Initial Recipient Status Decisions
                                                                            $0
                                                                       $55,700
Waiver Criteria Development[b]
                                                                        $2,400
                                                                      $111,000
Implementation Plans
                                                                      $111,000
                                                                    $1,006,000
Modifying Memoranda of Understanding
                                                                            $0
                                                                      $111,000
Modifying Permits
                                                                       $62,200
                                                                    $1,161,000
EPA Oversight[c]
                                                                    $1,179,000
                                                                            $0
Total
                                                                    $1,376,000
                                                                    $2,469,000
[a] Includes attendance by regional and headquarters staff, in addition to development cost.
[b] Includes initial development only, not renewal.
[c] Reflects undiscounted total cost of two rounds of oversight using assumptions discussed below.
Training Webinars
To ensure that state authorized NPDES programs are properly informed of the changes to the ICIS-NPDES system and the new data standards, EPA will develop and offer a 90-minute online training webinar for each phase of the implementation. The two webinars will require 100 hours total of EPA technical time to develop, at a total cost of $5,800. State authorized NPDES programs will incur a cost of $24,700 for the time required to attend the webinars (assuming three technical staff from each state attend each call). In addition, staff from each EPA region and headquarters will attend the webinars, at a total cost of $15,200.
Initial Recipient Status
Under the final rule, NPDES-regulated entities will submit NPDES program data to the designated "initial recipient," meaning the governmental entity, either the state or EPA, who first receives the NPDES program data. A NPDES program can initially elect to be the initial recipient for one or all of the NPDES data groups. This determination is an "opt-out" process for each authorized NPDES programs. Under this process, an authorized NPDES program must notify EPA within 120 days of the effective date of the final rule if it wishes EPA to be the Initial Recipient for a particular NPDES data group. If EPA receives no such notification, EPA will designate the state, tribe, or territorial NPDES program as the Initial Recipient for all NPDES data groups.
The analysis assumes that the initial recipient decision-making process will require five people in two meetings lasting two hours each, for a total of 20 hours of managerial time, for each authorized NPDES program. The total cost of these initial recipient decisions is $55,700.
Waiver Criteria
The final rule provides NPDES programs with flexibility in how they grant temporary and/or permanent waivers from electronic reporting. Under the final rule, authorized NPDES programs will need to document and submit to EPA for approval their process for evaluating and approving temporary and permanent electronic reporting waivers from NPDES regulated entities. The analysis assumes that developing the waiver criteria for each authorized NPDES program will require 40 hours of managerial time. The total cost of waiver criteria development is $111,000 to authorized programs, plus $2,400 for EPA to develop waiver criteria for where EPA Regions administer the program. Authorized NPDES programs will also need to re-submit their waiver process descriptions to EPA for review and approval on a five year cycle. The analysis conservatively assumes the cost of renewal would be the same as the cost of initial development.
Implementation Plans
Authorized NPDES programs will need to submit an implementation plan to EPA. These plans must include identifying: (1) all tasks for capturing and electronically processing facility and permit data; (2) all tasks for updating any state data systems; (3) technologies for electronic reporting systems and any necessary CROMERR approval; (4) technologies for transmitting and receiving Appendix A data to and from EPA; (5) schedule for updating state statutes, regulations, and NPDES permits; (6) schedule for training NPDES regulated entities on how to utilize electronic reporting systems; (7) roles and responsibilities; (8) necessary resources and commitments; and (9) alternative options for converting to electronic reporting (e.g., utilization of EPA services and systems like NetDMR or NeT) if the state continually misses its own scheduled milestones. These implementation plans would need to be approved by the authorized NPDES Director and EPA.
The analysis assumes each authorized program will require 40 hours of managerial time to identify and document each of the nine details listed above, plus one hour for sign off by the authorized NPDES Director. These assumptions result in 361 hours per implementation plan at a cost of $21,400 per authorized program. The total cost for all authorized programs to prepare implementation plans is $1,006,000. In addition, the analysis assumes that EPA will spend 40 hours of managerial time to review and approve each implementation plan, for a total cost of approximately $111,000.
Memoranda of Agreement
Authorized NPDES programs will need to update their existing Memoranda of Agreement with their Regional Administrator to incorporate electronic reporting requirements. The analysis assumes each authorized program will require 40 hours of managerial time to complete these updates. The total cost of these updates is $111,000 to authorized programs.
Permit Modifications
As the rule is phased in, states and EPA regions will make minor modifications to permits to require electronic reporting (and, where applicable, remove language that explicitly requires paper reporting). The analysis assumes that making these minor modifications will require 5 minutes per permit. The total cost of these permit modifications is $1,161,000 for authorized states and $62,200 for EPA regions.
EPA Oversight
As discussed in Section 3.3, EPA will use its CWA authority and ICR to issue targeted individual notices requiring NPDES-regulated entities to utilize their NPDES program's electronic reporting system. EPA would likely undertake this oversight activity when and authorized state, tribe, or territory has less than 90% participation rate for one or more data groups. EPA will assess participation rates separately for individual permitted facilities and for facilities covered under general permits. EPA makes a number of assumptions in estimating the cost of oversight including:
   * EPA will spend a total of 80 hours of technical labor to assess and report participation rates.
   * EPA would then send letters to facilities that are not reporting electronically in specific states that do not initially meet the participation rate targets. These letters would each require 0.25 hours of managerial labor and 0.25 hours of clerical labor, for a cost of $23.77 per letter including mailing costs (see Table 4-12).
   * EPA would need to undertake this activity in five states for individual permitted facilities and ten states for facilities covered under general permits.
   * Participation rates achieved in these states will be 75% for individual permitted facilities and 50% for facilities covered under general permits (such that 25% of individual permits and 50% of general permits will require letters).
   * 20% of facilities will require a second letter, one year later, to achieve full participation.
   * There will be two rounds of oversight letters: the first based on DMR participation rates during Phase 1 implementation and the second based on participation rates for Phase 2 data (e.g., program reports, NOIs).

Given these assumptions, the total cost of EPA oversight letters is $1,179,000.
Total Costs
Table 4-6 presents the total implementation costs for both EPA and states, including implementation and operations and management. Specifically, authorized NPDES programs will incur approximately $40.1 million dollars in implementation costs while EPA will incur $11.1 million dollars for implementation. After implementation, EPA will spend $955,000 annually to operate and maintain the electronic system while states will spend $14.6 million annually for maintenance and support. As discussed in Section 4.3.3, while many implementation activities occur within the first year after the effective date of the rule, others take place later or recur intermittently. The costs shown in Table 4-6 are undiscounted and account for recurrence only of certain activities (i.e., waiver criteria and EPA oversight). Section 4.5 provides further details regarding assumptions about implementation timing and the impact of timing and discount rates on return on investment.
           Table 4-6: Total Cost of Updating the Submission Process

                                Implementation
                     Annual Operations and Maintenance[a]
States
                                                                   $40,119,000
                                                                   $14,573,000
EPA
                                                                   $11,079,000
                                                                      $955,000
Total
                                                                   $51,198,000
                                                                   $15,528,000
[a] Includes undiscounted cost of renewing waiver criteria every five years

Regulated Entity and Authorized NPDES Program Savings and Costs Associated with Using the Updated Systems
Implementing the updated submittal process will change regulated entity and authorized NPDES program activities resulting in both savings and costs. Authorized NPDES programs will make minor permit modifications, which will require the regulated entity to report electronically. Authorized NPDES programs will be required to electronically submit to EPA all data elements identified in Appendix A, including forwarding to EPA data the authorized NPDES programs receive electronically from regulated entities. As each authorized NPDES program implements e-reporting systems meeting the minimum requirements, the updated data system will change the flow of NPDES data from the regulated entities and authorized NPDES programs to EPA such that duplicate data entry is eliminated. This section presents the derivation of the costs of generating and transferring the required data in electronic format from regulated entities to authorized NPDES programs and from authorized NPDES programs to EPA.
Regulated Entity Registration and Training Costs
As described in Section 3, regulated entities will be required to submit electronic reports, which will entail the registration and training requirements shown in Table 3-2. In addition, some small entities would need to acquire a new, business email address. The analysis assumes 10% of regulated entities would need to take this action during the registration process. Finally, regulated entities that use EPA (but not state) electronic tools and report less frequently than every 90 days will need to reset their password when they report. EPA makes the following assumptions regarding each registration and training activity:
One manager and one technical staff member will each spend 20 minutes (0.33 hours) registering for an electronic account in CDX, for a cost of $43.17;
One manager will spend 11 minutes to complete and mail an ESA, for a cost of $13.88, including postage (see Table 4-12);
One manager and one technical staff member will each spend 1.7 hours engaging in online training to familiarize themselves with the electronic reporting process for DMRs, for a cost of $220.18;
One manager will spend 0.5 hours to acquire a new, business email address using a free email service, for a cost of $37.06; and
One manager and one technical staff member will each spend 3 minutes (0.05 hours) to reset their password, for a cost of $6.48.

The estimated time required to complete the CDX registration and ESA application (including mailing time) is based on estimates from the Electronic Pre-Manufacturing Notice Proposed rule. The estimated time for electronic DMR training is based on the length of EPA's NetDMR training, which is an online tutorial accessible on demand.
The total cost of regulated entity registration and training is estimated by summing the number of regulated entities undertaking each activity multiplied by the cost of that activity. In addition, while single accounts could be used for multiple permits, this analysis conservatively assumes there will be one technical and one managerial account for each permit, with the following exceptions:
As described in Section 2, biosolids and pretreatment permits are issued to POTWs for monitoring sewage sludge or for accepting industrial waste along with domestic sewage, respectively. All POTWs are either combined or sanitary systems with registration and training costs covered under those subprograms. Therefore, the analysis does not assign separate registration and training costs to biosolids and pretreatment subprograms.
For construction stormwater general permits, the analysis assumes 2.9 construction general permits per construction firm and one technical and one managerial account per firm, instead of per permit.
Also for construction stormwater general permits, the analysis assumes 25% of regulated entities will use a hybrid paper/electronic reporting process, which is an option that authorized NPDES programs can employ under the final rule. Under the hybrid option, construction operators would complete an on-line construction stormwater general permit report, which simultaneously produces a paper copy of the report and electronically transmits a copy of the data from the report to the initial recipient. The construction operator would then sign and date the paper copy of the construction stormwater general permit report with a handwritten signature. The analysis assumes that construction operators using this hybrid approach would not incur electronic registration or ESA costs. Instead, they would incur a cost to print and mail their "wet ink" signature copy with each submission. The analysis assumes this cost is $0.55 per submission, incorporating printing and postage.

Taking these factors into account, the total initial cost of regulated entity registration and training is estimated at $21.2 million dollars. This total includes registration costs for regulated entities under EPA's Vessels General Permit and Pesticides General Permit (9,125 pesticide applicators and 4,000 unique filers covering 63,000 vessels). These entities are already reporting electronically, but not with a CROMERR compliant tool. Under the rule, they would need to re-register using EPA's new CROMERR compliant tool, but would not experience any additional costs or cost savings as a result of the rule.
Those regulated entities that use EPA (but not state) electronic tools and report less frequently than every 90 days also would bear a recurring cost to reset their passwords. The total annual cost of this activity is estimated at $852,000.
The analysis also considers that EPA might need to take over initial recipient status under 40 CFR 127.27(d) in one or more states. Permittees in these states would need to re-register in EPA's electronic systems. Assuming that EPA takes this action in two average-sized states during or after rule implementation, the total re-registration cost to regulated entities would be $817,000. This cost is undiscounted; Section 4.5 provides further details regarding assumptions about the timing of this activity.
Data Entry Costs
The final rule will increase the amount of information authorized NPDES programs must share with EPA. As noted elsewhere, regulated entities are currently submitting all of their required data (WENDB and Appendix A to 40 CFR 127) to their respective authorized NPDES programs. Under the rule, more data will be shared with EPA through use of ICIS-NPDES. The increase in data flowing to ICIS-NPDES, coupled with electronic reporting, has the effect of decreasing the number of data elements authorized NPDES programs are required to enter into ICIS-NPDES from paper DMRs and program reports, while increasing the number of regulated entities for which compliance and enforcement data will be required. As shown in Figure 4-1, estimating data entry costs relies on combining the number of permits with the number of data elements, the frequency at which those elements are reported, data entry time per data element, and wage rates for authorized NPDES program staff entering the data elements.
Figure 4-1: Estimating Data Entry Costs

Section 2 describes the number of permits and activity frequency. Table 4-7 shows the incremental change in data elements for each permit type and data family. The incremental number of data elements for certain data flows is negative because of the following factors:
Appendix A eliminates certain previously required data elements;
The number of data elements that are prepopulated or system generated and, thus, do not require manual data entry, has increased; and
For NOIs, DMRs, and program reports, electronic reporting will allow data to flow directly into ICIS-NPDES, as opposed to being entered by hand.
Estimated data entry times were developed by surveying nine states with regard to the time requirements associated with entering various data elements. The following sections describe the state survey and the data crosswalk used to estimate the per data element time to each subprogram.

Table 4-7: Authorized NPDES Program Incremental Electronic Reporting by Data Family and Permit Type
                                  Subprogram
                                  Permit Type
                      Incremental Number of Data Elements

                                  Permits[a]
                                    Limits
                                  Limit Sets
                                     DMRs
                                Program Reports
                             Compliance Monitoring
                                 Violations[b]
                              Enforcement Actions
              Non-POTWs (Industrial, Agriculture, and Stormwater)
                        Standard Industrial Dischargers
                                                               Individual Major
                                                                            -17
                                                                              1
                                                                              3
                                                                            -10
                                                                              0
                                                                              4
                                                                              3
                                                                              3

                                                            Individual Nonmajor
                                                                             -5
                                                                             23
                                                                             10
                                                                            -10
                                                                              0
                                                                              4
                                                                              8
                                                                              3

                                                               General Nonmajor
                                                                            -23
                                                                              0
                                                                              0
                                                                            -10
                                                                              0
                                                                              4
                                                                              8
                                                                              3
                              CWA §316(b) Filers
                                                      Cooling Water Intake Data
                                                                           8[c]
                                                                            n/a
                                                                            n/a
                                                                            n/a
                                                                            n/a
                                                                            n/a
                                                                            n/a
                                                                            n/a

                                                          Thermal Variance Data
                                                                           3[c]
                                                                            n/a
                                                                            n/a
                                                                            n/a
                                                                            n/a
                                                                            n/a
                                                                            n/a
                                                                            n/a

                                                    CWA §316(b) Annual Reports
                                                                            n/a
                                                                            n/a
                                                                            n/a
                                                                            n/a
                                                                              1
                                                                            n/a
                                                                            n/a
                                                                            n/a
            SIUs In Municipalities without Pretreatment Program[d]
                                                                            n/a
                                                                            n/a
                                                                            n/a
                                                                            n/a
                                                                              1
                                                                            n/a
                                                                            n/a
                                                                            n/a
                                     CAFOs
                                                            Individual Nonmajor
                                                                             10
                                                                             23
                                                                             10
                                                                              0
                                                                              1
                                                                             11
                                                                              8
                                                                              3

                                                               General Nonmajor
                                                                            -21
                                                                              0
                                                                              0
                                                                              0
                                                                              1
                                                                             11
                                                                              8
                                                                              3
                   Industrial & Construction Stormwater

                                                                     Industrial
                                                               Individual Major
                                                                            -14
                                                                              1
                                                                              3
                                                                            -10
                                                                              0
                                                                              4
                                                                              3
                                                                              3

                                                            Individual Nonmajor
                                                                             -2
                                                                             23
                                                                             10
                                                                            -10
                                                                              0
                                                                              4
                                                                              8
                                                                              3

                                                               General Nonmajor
                                                                            -12
                                                                              0
                                                                              0
                                                                              0
                                                                              0
                                                                              4
                                                                              8
                                                                              3
                                                                   Construction
                                                               Individual Major
                                                                             -8
                                                                              1
                                                                              3
                                                                            -10
                                                                              0
                                                                              4
                                                                              3
                                                                              3

                                                            Individual Nonmajor
                                                                              4
                                                                             23
                                                                             10
                                                                            -10
                                                                              0
                                                                              4
                                                                              8
                                                                              3

                                                               General Nonmajor
                                                                            -20
                                                                              0
                                                                              0
                                                                              0
                                                                              0
                                                                              4
                                                                              8
                                                                              3
                            Municipal Stormwater[e]

                                                                   Phase I MS4s
                                                               Individual Major
                                                                            -10
                                                                              1
                                                                              3
                                                                            -10
                                                                             -2
                                                                              5
                                                                              3
                                                                              3

                                                               General Nonmajor
                                                                            -22
                                                                              0
                                                                              0
                                                                            -10
                                                                             -2
                                                                              5
                                                                              3
                                                                              3
                                                                  Phase II MS4s
                                                            Individual Nonmajor
                                                                              7
                                                                             23
                                                                             10
                                                                              0
                                                                             -2
                                                                              5
                                                                              8
                                                                              3

                                                               General Nonmajor
                                                                            -22
                                                                              0
                                                                              0
                                                                              0
                                                                             -2
                                                                              5
                                                                              8
                                                                              3
POTWs and TWTDSs (may have a CSS or a SSS, may also file more than one report)
                                                             POTWs with CSSs[f]
                                                               Individual Major
                                                                             -1
                                                                              1
                                                                              3
                                                                            -10
                                                                          -2[f]
                                                                              5
                                                                              3
                                                                              3

                                                            Individual Nonmajor
                                                                             10
                                                                             23
                                                                             10
                                                                              0
                                                                           1[f]
                                                                              5
                                                                              8
                                                                              3

                                                               General Nonmajor
                                                                            -23
                                                                              0
                                                                              0
                                                                              0
                                                                           1[f]
                                                                              5
                                                                              8
                                                                              3
                                             POTWs with SSSs only and TWTDSs[f]
                                                               Individual Major
                                                                            -10
                                                                              1
                                                                              3
                                                                            -10
                                                                          -2[f]
                                                                              5
                                                                              3
                                                                              3

                                                            Individual Nonmajor
                                                                              1
                                                                             23
                                                                             10
                                                                              0
                                                                           1[f]
                                                                              5
                                                                              8
                                                                              3

                                                               General Nonmajor
                                                                            -23
                                                                              0
                                                                              0
                                                                              0
                                                                           1[f]
                                                                              5
                                                                              8
                                                                              3
                           POTW NPDES Report Filers

                                         Biosolids/ Sewage Sludge Report Filers
                                                               Individual Major
                                                                           6[g]
                                                                              0
                                                                              0
                                                                              0
                                                                             -2
                                                                              1
                                                                              8
                                                                              0

                                                            Individual Nonmajor
                                                                           8[g]
                                                                              0
                                                                              0
                                                                              0
                                                                              1
                                                                              1
                                                                              8
                                                                              0
                                             Pretreatment Program Report Filers
                                                               Individual Major
                                                                          11[g]
                                                                              1
                                                                              3
                                                                            -10
                                                                             -6
                                                                              5
                                                                              3
                                                                              3

                                                            Individual Nonmajor
                                                                          13[g]
                                                                             23
                                                                             10
                                                                              0
                                                                              1
                                                                              5
                                                                              8
                                                                              3
a In addition to the permit data elements shown, the analysis includes data entry for 6 data elements for permitted facilities that must make minor permit changes.
b In addition to the violation data elements shown, the analysis includes data entry for 4 data elements associated with expanded SEV reporting for nonmajor facilities.
[c] Accounts for permit data elements specific to cooling water intakes and thermal variances. All other permit data elements are captured by standard industrial dischargers.
[d] These industrial facilities discharge to POTWs and are regulated by the NPDES program through EPA's General Pretreatment Regulations (40 CFR 403) and Categorical Pretreatment Standards (40 CFR 405  -  471). They do not have NPDES permits, but those in municipalities without pretreatment programs would report electronically under the rule.
[e] Nearly all Phase I MS4s are individually permitted facilities. For purposes of cost estimating, the analysis treats all individually permitted Phase I MS4s as majors and all Phase II MS4s as nonmajors.
[f] The analysis divides the total universe of POTWs into CSSs and SSSs and treats those that are only partially composed of CSSs as CSSs.
[f] Accounts for the submission of sewer overflow reports.
[g] Accounts for those permit data elements specific to the biosolids and pretreatment programs. All other permit data elements are captured by CSSs POTWs, SSSs POTWs, TWTDSs, or standard industrial dischargers.

State Survey
To characterize the cost of data entry, EPA surveyed nine states: four batch user states; two hybrid user states; and three direct user states. The states, listed in Table 4-8, were selected to provide a distribution across modes of submission (batch, hybrid, and direct) and size (based on numbers of NPDES permits). It is assumed that the unit burden estimates reported by these states are representative of what will be experienced by all states, territories, tribes, and EPA Regions to comply with the rule.
Table 4-8: Surveyed States by User Type
                                     State
                                   User Type
Maine
                                     Batch
Minnesota*
                                     Batch
Florida
                                     Batch
Kentucky
                                     Batch
Arkansas
                                    Hybrid
Tennessee*
                                    Hybrid
Hawaii
                                    Direct
South Dakota
                                    Direct
New York
                                    Direct
*Represents user type at time of survey; user type has changed since the original survey.

The survey asked state representatives for the time required for the state to enter the information currently required for each data family described in Section 1 for the "typical" permit. The survey then presented the required data for each data family and asked how long it took to enter each of the data, again for the "typical" permit.
Data Entry Crosswalk
The time estimates collected in the state survey were first divided by the number of data elements in each data family to determine an average time per data family for each mode of ICIS-NPDES submission (batch, hybrid, and direct) and subprogram. These times were then averaged to determine the average data entry time per data element for each submission mode and subprogram. Finally, the average times were multiplied by state data clerk wage rates to determine the average state costs of data entry per data element. Table 4-9 displays the average data entry cost per data element by submission mode and subprogram.
Table 4-9: Average Data Entry Time (in minutes) and Cost Per Data Element (2014 Dollars)
NPDES User Type
Industrials and Stormwater
POTWs

Standard Industrial
CAFO
Stormwater
Biosolids
Pretreatment[b]
CSS
SSS

                                     Min.
                                     Cost
                                     Min.
                                     Cost
                                     Min.
                                     Cost
                                     Min.
                                     Cost
                                     Min.
                                     Cost
                                     Min.
                                     Cost
                                     Min.
                                     Cost
Batch
                                                                           5.45
                                                                         $3.04
                                                                           2.99
                                                                         $1.67
                                                                           5.45
                                                                         $3.04
                                                                           2.61
                                                                         $1.45
                                                                           5.42
                                                                         $3.02
                                                                           5.27
                                                                         $2.93
                                                                           5.47
                                                                         $3.05
Direct
                                                                           2.49
                                                                         $1.39
                                                                           2.34
                                                                         $1.30
                                                                           2.57
                                                                         $1.43
                                                                           2.61
                                                                         $1.45
                                                                           2.55
                                                                         $1.42
                                                                           2.45
                                                                         $1.36
                                                                           2.50
                                                                         $1.39
Hybrid
                                                                           1.62
                                                                         $0.90
                                                                           1.73
                                                                         $0.96
                                                                           1.62
                                                                         $0.90
                                                                           2.61
                                                                         $1.45
                                                                           1.59
                                                                         $0.89
                                                                           1.53
                                                                         $0.85
                                                                           1.62
                                                                         $0.90
[a] Only one surveyed state, South Dakota, is authorized to administer the Biosolids program. Therefore, their time estimates are used for all states.
b Cost and burden for SIUs is the same as those for Pretreatment program.
Initial Data Entry
In order for the electronic system to route regulated entity DMRs and program reports correctly, authorized NPDES programs will have to populate ICIS-NPDES with all of the required facility identification information, limits, and limit sets. While much of this information is already available electronically through ICIS-NPDES, states will have to provide the data elements already required to be reported by permittees but not already in ICIS-NPDES in electronic format. Some states may already have the additional data elements available electronically. However, for the purpose of this analysis, EPA assumed that states would incur costs associated with entering the data into ICIS-NPDES electronically to ensure the data meets the new data standards. This assumption results in a conservative estimate, and actual costs will be less for those authorized NPDES programs that have already entered this data into electronic systems. The cost of manual data entry is $3.9 million dollars for state authorized NPDES programs and $336,000 for EPA Regions.
Authorized NPDES Program Data Entry Costs
As discussed above, this analysis estimates authorized NPDES program data entry costs by combining the number of permits with the number of data elements, the frequency at which those elements are reported, data entry time per data element, and wage rates. Next, costs are aggregated by authorized NPDES program to distinguish between state and EPA Region authorized NPDES programs. The annual costs associated with state authorized NPDES programs and EPA Regions entering the programmatic data is $3.9 million dollars and $30,000, respectively. This estimate does not include the savings to authorized NPDES programs from data flows where the incremental data entry burden is negative (e.g., due to electronic reporting of NOIs, DMRs, and program reports received from the regulated universe).
Regulated Entity Costs for Electronic Reporting During Transition
EPA will phase in the electronic collection of NPDES program data on the following schedule.
Phase 1: EPA will electronically receive the basic facility and permit information from the authorized NPDES program, DMR information from all facilities, NOIs from general permit covered facilities for Federally-issued general permits, and biosolids program reports from facilities where EPA is the authorized biosolids program. EPA will also begin to electronically receive information from authorized NPDES programs regarding inspections, violation determinations, and enforcement actions.
Phase 2: EPA will electronically receive information from general permit covered facilities for state authorized NPDES program-issued general permits, biosolids program reports from facilities where the state is the authorized biosolids program, and all other program reports from all facilities.
As discussed in Section 3.3, during the initial implementation period (within five years after the effective date of the rule), a small number regulated entities might be required to submit data to their authorized state program both electronically and on paper. Regulated entity electronic reporting during the transition involves copying information from their paper DMR forms into the appropriate state electronic reporting system. The copy and paste process is expected to take ten seconds for each of the 12 Appendix A DMR data elements. The time estimate is multiplied by the private sector data clerk wage rate (see Table 4-2) to determine the cost per submission, which is then multiplied by the number of regulated entities affected and the frequency of submission. The calculation also incorporates the number of DMR forms per submission, which is assumed to be four for major individual permits, two for nonmajor individual permits, and one for general permits (see Section 4.6 for further discussion of the impact of this assumption).
The analysis assumes that a maximum of 15% of regulated entities face conditions such that they could possibly be required to report both on paper and electronically (i.e., their permit conditions explicitly require paper reporting, the authorized state does not use its enforcement discretion, etc.). The actual number of regulated entities affected and the resulting cost will decrease over the course of the transition period, as permits are modified to require electronic, instead of paper reporting, either on the normal permit cycle or as a result of state implementation activities. The analysis assumes dual reporting will cease once the rule is fully implemented, five years after the effective date of the rule. The total undiscounted cost of electronic reporting during the transition period, is $464,000. Once the rule is fully implemented, dual reporting will cease.
Other Ongoing Administrative Activities
Under the final rule, authorized states and EPA regions will bear costs for other minor activities in addition to ongoing data entry. These minor activities include forwarding biosolids permit information and notifications to SIUs.
States that are authorized for the NPDES program, but not the biosolids program, receive permit applications from POTWs that include the biosolids portion of the permit applications (Form 2S). These states must forward the biosolids portion of the application to the EPA region that is approved for the biosolids program. Although this is an existing requirement, forwarding the data becomes more crucial, given the need for the EPA regions to enter the biosolids permit data electronically. Therefore, the analysis includes the cost of this activity. It assumes each state compiles and forward the information monthly (less frequently in states expected to have fewer than one biosolids application per month), requiring one hour of clerical time, at a cost of $36.47 including mailing costs (a large envelope, see Table 4-12). Given these assumptions, the total cost of forwarding biosolids permit information is $15,000 per year for states that are authorized for the NPDES program, but not the biosolids program.
Under the final rule, for the pretreatment program, when the state or EPA is the Control Authority, they must notify the industrial users they directly control of the applicable electronic reporting requirements. The analysis assumes a single annual notice, in which 75% percent of SIUs are contacted via email and 25% are contacted by mailed letter. It assumes that the email notifications require 8 hours of clerical time total for each authorized program. It assumes that each individual letter requires 0.1 hours of clerical time, for a cost of $3.89 including mailing costs (see Table 4-12). Given these assumptions, the total cost of SIU notifications is $10,000 per year for authorized states and $4,100 per year for EPA regions.
National Non-Compliance Report
One reason EPA is moving forward with the rule is to improve reporting on the efforts and efficacy of the NDPES program to the public and Congress. EPA will use the programmatic information from authorized NPDES programs to develop a National Non-Compliance Report that will replace the Annual and Quarterly Non-Compliance Reports and the Semi-Annual Statistical Summary. The National Non-Compliance Report will require 36 hours of EPA technical time and 4 hours of managerial time, for an annual cost of $2,300.
Total Annual Processing, Submission and Data Entry Costs of Using the Updated System
This section outlines the cost of the rule after the implementation period. All IT modification costs have been accounted for and all regulated entities have completed their registration and training requirements. The costs shown in Table 4-10 include the cost of operating, maintaining, and supporting the updated system, the recurring data entry cost incurred by authorized NPDES programs due to the programmatic data elements (the shift from WENDB to Appendix A and to having to enter information for nonmajor regulated entities), and the cost of other ongoing activities. There are no net ongoing data entry costs to regulated entities, but some entities bear an ongoing cost associated with password resets. Data entry and processing savings due to electronic reporting are discussed in the Section 4.4.7. As shown in Table 4-10, the annual (undiscounted) data entry and operating costs of the updated system are $20.3 million.
Table 4-10: Annual Cost of Data Entry and Operations for the Updated System after Implementation
                                Rule Components
                                    EPA HQ
                                  EPA Regions
                                    States
                              Regulated Entities
                                     Total
Electronic Reporting Operation, Maintenance, and Support
                                                                      $955,000

                                                                   $14,551,000

                                                                   $15,506,000
Required Programmatic Data Entry

                                                                       $30,000
                                                                    $3,857,000

                                                                    $3,887,000
Other Administrative Activities[a]
                                                                          $500
                                                                        $4,100
                                                                       $47,000
                                                                      $852,000
                                                                      $903,600
National Non-Compliance Report
                                                                        $2,300

                                                                        $2,300
Total for All Components
                                                                      $958,000
                                                                       $34,000
                                                                   $18,455,000
                                                                      $852,000
                                                                   $20,299,000
[a] Includes biosolids permit data forwarding, SIU notifications, waiver criteria renewal (every five years), and password resets.

Total Costs of the Final Rule
Table 4-11 shows the initial cost of rule implementation. The (undiscounted) cost to regulated entities is $22.4 million, and costs to EPA and state authorized NPDES programs to implement electronic reporting are $11.4 million and $44.0 million, respectively. These costs do not include the annual ongoing costs that continue after full implementation, shown in Table 4-10.  While many of the costs shown in Table 4-11 are incurred within the first year after the effective date of the rule, they including certain recurring or ongoing activities that should cease once full implementation is achieved (e.g., dual reporting, re-registration). Section 4.5 provides further details regarding assumptions about implementation timing and the impact of timing and discount rates on return on investment.
          Table 4-11: Total Initial Implementation Costs of the Rule
                                Rule Components
                                    EPA HQ
                                  EPA Regions
                                    States
                              Regulated Entities
                                     Total
Reporting Tool Implementation
                                                                     $9,703,000

                                                                    $37,650,000

                                                                    $47,353,000
Other Administrative Activities[a]
                                                                     $1,308,000
                                                                        $67,500
                                                                     $2,469,000

                                                                     $3,844,500
Registration[b]

                                                                    $21,978,000
                                                                    $21,978,000
Initial Data Entry/Reporting During Transition

                                                                       $336,000
                                                                     $3,912,000
                                                                       $464,000
                                                                     $4,712,000
Total for All Components
                                                                    $11,011,000
                                                                       $404,000
                                                                    $44,031,000
                                                                    $22,442,000
                                                                    $77,888,000
[a] See Table 4-5
[b] Includes re-registration, assuming EPA would take over initial recipient status in two average-sized states under 40 CFR 127.27(d).

Submission and Processing Savings from Electronic Reporting
Regulated Entity Submission Savings
Once regulated entities establish their electronic accounts, they will experience savings due to the fact that they no longer have to mail their DMRs or program reports to the authorized NPDES program. Table 4-12 lists the components of mailing costs for regulated entities. Because the electronic reporting tools will include the ability to check for certain types of errors, the regulated entities will also see savings related to improved data quality and less need to revise and reenter their submissions. However, savings to regulated entities associated with improved data quality are not quantified in this analysis.

                           Table 4-12: Mailing Costs
                                 Cost Category
                                     Cost
Page of Paper[a]
                                                                          $0.01
Envelope  -  Small[b]
                                                                          $0.04
Envelope  -  Large[c]
                                                                          $0.18
Postage  -  Small[d]
                                                                          $0.49
Postage - Large Envelope with 60 Pages inside[d]
                                                                          $2.87
Postage - Flat Rate Envelope[d]
                                                                          $5.75
a. Source: Office Depot brand standard white paper (March 2015)
b. Source: Office Depot brand #10 security envelopes (March 2015)
c. Source: Office Depot brand white 9" x 12" catalog envelopes (March 2015)
d. Source: usps.com (March 2015)

Specifically, regulated entities submitting program reports electronically will save on paper and postage. According to EPA program experts, the most expensive program reports, pretreatment program reports, average 100 pages. Electronic submission of pretreatment program reports, therefore, will save regulated entities $6.95 per report. The analysis assumes that all other program reports average 1.5 pages, and require one standard size envelope and postage. Electronic submission of other program reports, therefore, will save regulated entities $0.55 per report. The total annual savings for all regulated entities submitting program reports electronically is approximately $60,000.
DMR submission savings are similar to program report savings except that the frequency of DMR submission is higher than that of program reports. According to EPA program experts, the average DMR form is five pages long. The analysis assumes four DMR forms per submission for major individual permits, two forms per submission for nonmajor individual permits, and one form per submission for general permits, for a total of five to 20 pages per submission (see Section 4.6 for further discussion of the impact of the number of DMR forms). DMRs are partially filled out by the regulated entity, sent to an independent laboratory for completion, and then sent to the authorized NPDES program. Therefore, electronic DMR submission will save two standard envelopes, two first class stamps and five to 20 pages of paper, saving a total of $1.13 to $1.31 per submission. As discussed below, the analysis assumes that EPA Regions and authorized NPDES programs currently mail pre-populated DMR forms to an estimated 50% of all NPDES regulated entities. DMR savings for these entities are $1.07 per submission. Combining these two scenarios, average DMR savings are $1.10 to $1.19 per submission. As noted in Section 2, DMR submission rates vary from annual to monthly according to the subprogram and permit type.
Note that it is not possible to simply multiply the per regulated entity savings by the sub program universe to estimate total regulated entity submission costs savings due to the fact that reporting frequencies are different within and across subprograms. For example, major stormwater regulated entities submit DMRs monthly, multi-sector generals submit DMRs three times per year, and only a few construction stormwater covered facilities have DMR reporting requirements. Taking these factors into account, the total annual regulated entity savings from electronic DMR submission is $862,000 for general permit regulated entities and $533,000 for individual permit regulated entities, totaling $1,395,000 per year.
Authorized NPDES Program Processing Savings
Electronic submission will also create savings for authorized NPDES programs by eliminating the cost of processing incoming DMRs and program reports, mailing out pre-populated DMRs and by reducing data entry. Currently, authorized NPDES programs receive these reports in the mail, staff open and inspect them to ensure they are filled out correctly, enter their information into the state or EPA data system, and usually store them in a physical filing system. Excluding data entry, which is addressed in the next section, this process is estimated to take a data entry clerk 20 minutes per DMR form and 7.5 minutes per program report. Following rule implementation, those processing activities will be automated. As a result, authorized NPDES programs will save $4.18 for every program report received electronically. They will save $11.14 for every DMR form, or $11.14 to $44.56 per DMR submission after accounting for assumptions about the number of DMR forms per submission (see Section 4.6 for further discussion of the impact of the number of DMR forms). The total savings from electronic processing of DMRs and program reports is $21.2 million and $1.9 million for authorized NPDES programs and EPA, respectively.
EPA Regions and state authorized NPDES programs will also experience savings by no longer sending pre-populated DMR forms to regulated entities. Currently, EPA Regions and authorized NPDES programs mail DMR forms with regulated entity-specific limits to an estimated 50% of all NPDES regulated entities. Post rule, electronic copies of DMR forms will be available to all regulated entities, making them universally available and eliminating the need to mail the forms out. Table 4-13 details the per permit savings from eliminating the preparation and mailing of pre-populated DMR forms.
         Table 4-13: Unit Savings from Eliminating Pre-populated DMRs
                                Type of Savings
                               Annual Frequency
                                Number of Pages
                                     Cost
                           Annual Savings per Permit
Paper
                                      12
                                    5 to 20
                                                                         $0.01
                                                                 $0.06 to $0.24
Envelopes
                                       1
                                       1
                                                                         $0.18
                                                                         $0.18
Postage
                                       1
                                       1
                                                                         $2.87
                                                                         $2.87
                                                                          Total
                                                                 $3.11 to $3.29

Finally, authorized NPDES programs will have reduced data entry requirements for DMRs and program reports due to the rule. As noted above, the authorized NPDES program enters information from the paper NOIs, DMRs, and program reports into the system. Following implementation of the rule, authorized NPDES programs will receive electronic NOIs, DMRs, and program reports from the regulated entities, eliminating the need for data entry. The annual savings is $23.5 million dollars and $446,000 for authorized NPDES programs and EPA, respectively. Much of these savings result from elimination of data entry associated with DMRs and incorporate assumptions discussed above about the number of DMR forms per submission (see Section 4.6 for further discussion of the impact of the number of DMR forms).
Total Annual Savings after Full Implementation
Table 4-14 shows the aggregated annual savings estimated for regulated entities, states, and EPA Regions at full implementation. Regulated entities will save $1.5 million dollars due to eliminating paper and mailing costs for DMRs and program reports. State authorized NPDES programs will save $23.5 million dollars on data entry and $21.2 million dollars on DMR and program report processing. EPA Regions will save $446,000 on data entry and $1.9 million on DMR and program report processing. Annual savings associated with eliminating the Annual Non-Compliance Report and Quarterly Non-Compliance Reports as well as the Semi-Annual Statistical Summary (SASS) for state authorized NPDES programs and EPA are $872,000 and $97,000, respectively. Across all changes called for in the final rule, annual savings total $2.5 million for EPA, $45.6 million for states, and $1.5 million for regulated entities with a total annual savings of $49.5 million (undiscounted).
               Table 4-14: Total Annual Savings under Final Rule
                                Type of Savings
                                      EPA
                                    States
                              Regulated Entities
                                     Total
Data Entry Savings
                                                                       $446,000
                                                                    $23,515,000
                                                                             $0