1 SF 83 SUPPORTING STATEMENT U. S. ENVIRONMENTAL PROTECTION AGENCY National Emission Standards for Hazardous Air Pollutants, Benzene Emissions from Benzene Storage Vessels, and Coke By Product Recovery Plants Section A ( Subpart L)

1. Identification of the Information Collection 1( a) Title of the Information Collection ICR for NESHAP, SUBPART L  Benzene Emissions from Coke By Product Recovery Plants 1( b) Short Characterization/ Abstract Subpart L was revised on September 19, 1991 to allow for the use of carbon adsorbers and vapor incinerators as alternative means of complying with the standards for process vessels, storage tanks and tar intercepting sumps. The use of carbon adsorbers and vapors incinerators instead of gas blanketing, the control technology on which the standards were based, is optional. The provisions include record keeping and reporting requirements specific to these alternative control devices. An information collection request ( ICR number 1080.07) was developed for that revision and is consolidated into this ICR with this review.

Approximately 36 sources are currently subject to the standard, and it is estimated that no additional sources will become subject to the standard in the next three years. The cost of this ICR will be $ 311,652 dollars.

Respondents are all owners or operators of furnace and foundry coke by product recovery plants. Approximately 36 sources are currently subject to the standard, and it is estimated that no additional sources will become subject to the standard in the next three years. Benzene is the pollutant regulated under Subpart L.

The control requirements for coke by product recovery plants require that organic vapors be recovered and routed via closed vent system ( no detectable emissions) to a control device that achieves a 95 percent or greater destruction efficiency. The affected equipment must not exceed a specified level of equipment leaks, either through a concentration standard, or in the case of valves, a percent of total valves standard is optional. The control of emissions of benzene from recovery plants requires not only the installation of properly designed equipment, but also the 2 operation and maintenance of that equipment. Emissions of benzene from recovery plants covered by this regulation are the result of leaking equipment. Therefore, coke by product recovery plants subject to this regulation shall comply with the requirements of Subpart V, National Emission Standard for Equipment Leaks ( Fugitive Emission Sources), as specified in § 61.137.

Owners or operators of the affected facilities described must make the following one time only reports: notification of construction or modification; notification of the anticipated and actual dates of startup; initial compliance reports, notification of emission tests, report following an emission test, notification of a monitoring system performance test.

Owners or operators are also required to maintain records of the occurrence and duration of any startup, shutdown, or malfunction in the operation of an affected facility, or any period during which the monitoring system is inoperative. These notifications, reports and records are required, in general, of all sources subject to any NESHAP.

Reporting requirements specific to benzene coke by product recovery plants, Subpart L, include a semiannual report by affected facilities. The semiannual reports include results of leak monitoring and performance tests. Respondents also are required to submit semiannual reports of measurements for sources subject to a no detectable emissions limit and semiannual reports summarizing the results of the leak detection and repair programs implemented at the plant. One report would incorporate information for both process equipment and fugitive sources. These reports would include information such as number of leaks that occurred, the number that could not be repaired, the general reasons for unsuccessful or delay of repair, and the results of performance tests conducted during the reporting period.

Monitoring, record keeping and reporting requirements specific to benzene coke by product recovery plants for leak detection and repair of fugitive emission sources are those provisions specified under 40 CFR 61, NESHAP Subpart V. The Subpart V regulations for equipment leaks were approved by the Office of Management and Budget ( OMB) under control number 2060 0068. The only difference in the equipment leak requirements of Subpart V and this regulation relates to exhausters. Exhausters are subject to quarterly monitoring requirements. However, quarterly monitoring is not required if the exhauster is equipped with a seal system that has a barrier fluid, the exhauster seal is loaded and vented to a control device, or a leakless exhauster is used. Exhausters are subject to the same record keeping and reporting provisions as other equipment subject to Subpart V.

The added control amendment to the coke by product plant benzene NESHAP is based on a settlement agreement pursuant to a petition to review the benzene NESHAP by the American Coke and Coal Chemicals Institute ( ACCCI). The record keeping and reporting requirements contained in this rule are consistent with those described in the agreement. 3 The owner or operator choosing to use one of the alternative control technologies ( i. e., a carbon adsorber or a vapor incinerator) would be required to record for the life of the control device, the design of the control device, the sources which it is intended to control, and a plan for the operation, maintenance and action needed to correct problems. Such a record would assist the owner or operator to operate the device properly throughout its life and would also assist the enforcement personnel in determining, when reviewing records that indicate problems with the control device, whether the device had been properly maintained and appropriate corrective action had been taken. The owner or operator would be required to record the results of each test for determining compliance with the standard. Also required to be recorded, would be any data that provide reference values for parameters that are important to monitoring, such as temperature of the firebox in a vapor incinerator and the benzene concentration at the inlet to a carbon adsorber. Some of these data are gathered during the compliance test, others separately ( e. g., the demonstrated bed life of a carbon adsorber).

These records would be required to be kept for at least two years, or until the next compliance test ( or time that the parameter reference value is determined), whichever is longer. Finally, the results of monitoring the control device would be required to be recorded for at least 2 years. The records would include any periods when the boundaries established for the monitored parameters were exceeded and the action taken to correct the problem that led to the exceedance.

The alternative control options require reporting in addition to record keeping. The General Provisions require reporting of compliance tests. This would be submitted each time a compliance test is performed. The rule requires compliance tests to be done initially and at the request of EPA ( not at predetermined intervals). In addition, the rule requires reporting of exceedances of the monitored parameters, with a brief description of the corrective action taken. Included would be exceedances of the operating requirements such as if the source were not vented to a fresh carbon bed before the maximum concentration point was exceeded on the spent bed. The reports are required quarterly. When semiannual reports under Subpart L are due, the information for the quarterly report should be submitted as part of the semiannual report. If there were no exceedances during a quarter in which no semiannual report was due, reporting for that quarter could be skipped and a notation to that effect included in the next report. The reason that quarterly reports are required for these control devices is because the monitoring is generally continuous and therefore provides a continuous record of problems with operation and maintenance of the device. Because of the hazardous nature of benzene, it is important that enforcement personnel are alerted to plants that are having problems with their control device and are potentially in violation of the standards. The enforcement personnel can then move quickly to make sure the problem area is corrected.

Any owner or operator subject to the provisions of this part shall maintain an up to date file of monitoring and recordings, and retain them for at least two years following. Records of equipment and process design are kept permanently. 4 2. Need for and Use of the Collection 2( a) Need/ Authority for the Collection The EPA is charged under Section 112 of the Clean Air Act, as amended, to establish standards of performance for each category or subcategory of major sources and area sources of hazardous air pollutants. These standards are applicable to new or existing sources of hazardous air pollutants and shall require the maximum degree of emission reduction. In addition, Section 114( a) states that:

. . . the Administrator may require any owner or operator subject to any requirement of this Act to ( A) establish and maintain such records, ( B) make such reports, ( C) install, use, and maintain such monitoring equipment or methods ( in accordance with such methods at such locations, at such intervals, and in such manner as the Administrator shall prescribe), ( D) sample such emissions, ( E) keep records on control equipment parameters, production variables or other indirect data when direct monitoring of emissions is impractical, ( F) submit compliance certifications, and ( G) provide such other information as he may reasonably require.

In the Administrator's judgment, benzene emissions from coke by product recovery plants cause or contribute to air pollution that may reasonably be anticipated to endanger public health or welfare. Therefore, NESHAPs were promulgated for this source category at 40 CFR Part 61 Subpart L .

2( b) PRACTICAL UTILITY/ USERS OF THE DATA The control of emissions of benzene from coke by product recovery plants requires not only the installation of properly designed equipment, but also the operation and maintenance of that equipment. Emissions of benzene from coke by product recovery plants are the result of operation of tar decanters, tar storage tanks, tar intercepting sumps, flushing liquor circulation tanks, light oil sumps, light oil condensers, light oil decanters, wash oil decanters, wash oil circulation tanks, naphthalene processing, final coolers, final cooling towers, and equipment intended to operate at benzene service including pumps: valves, exhausters, pressure relief devices, sampling connection systems, open ended valves or lines, flanges or other connectors, and control devices or systems require by 40 CFR § 61.135. These standards rely on the capture of benzene emissions by installing closed systems, barrier fluid degassing systems, closed vent system to a control device, closed purge systems to a control device, seal systems, and by monitoring equipments to repair leaks as soon as practicable, as specified in Subpart V. 5 3. Nonduplication, Consultations, and Other Collection Criteria 3( a) Nonduplication The record keeping and reporting requested is required under 40 CFR Part 61 Subpart L. If the standard has not been delegated, the information is sent to the appropriate EPA Regional Office. Otherwise, the information is sent directly to the delegated State or Local Agency. If a State or local Agency has adopted a similar regulation to implement the Federal regulation, a copy of the report submitted to the State or local agency can be sent to the Administrator in lieu of the report required by the Federal standard. Therefore, no duplication exists.

3( b) Public Notice Required Prior to ICR Submission to OMB An announcement of a public comment period for the renewal of this ICR was published in the Federal Register on July 12, 1999 ( 64 FR 37530).

3( c) Consultations No comments were received on the burden published in the Federal Register.

3( d) Effects of Less Frequent Collection Less frequent information collection would decrease the margin of assurance that facilities are continuing to meet the required standards. Requirements for information gathering and record keeping are useful techniques to ensure that good operation and maintenance practices are applied and emission limitations are met. If the information required by these standards was collected less frequently, the likelihood of detecting poor operation and maintenance of control equipment and noncompliance would decrease.

3( e) General Guidelines None of the reporting or record keeping requirements contained in 40 CFR Part 61 Subpart L or otherwise pertinent to this request violates any of the regulations established by OMB in 5 CFR 1320.6.

3( f) Confidentiality The required information consists of emissions data and other information that have been determined not to be private. However, any information submitted to the Agency for which a claim of confidentiality is made will be safeguarded according to the Agency policies set forth in Title 40, Chapter 1, Part 2, Subpart B  Confidentiality of Business Information ( see 40 CFR 2; 41 FR 36902, September 1, 1976; amended by 43 FR 40000, September 8, 1978; 43 FR 42251, September 20, 1978; 44 FR 17674, March 23, 1979). 6 3( g) Sensitive Questions None of the reporting or record keeping requirements contained in ( 40 CFR Part 61 Subpart L or otherwise pertinent to this request contain sensitive questions.

4. The Respondents and the Information Requested 4( a) Respondents/ SIC Codes The respondents of the record keeping and reporting requirements are coke by product recovery plants ( SIC Code 3312: Steel Works and Blast Furnaces) that commenced construction, modification, or reconstruction after September 14, 1989.

4( b) INFORMATION REQUESTED All data in this ICR that is recorded and/ or reported is required by 40 CFR Part 61 Subpart L Coke By product Recovery Plants.

A source must make the following reports Provide notification of  construction/ reconstruction/ modification  anticipated startup  actual startup  performance evaluations  implementation of equipment leakage requirements Report on  performance tests  excess emissions  general and maintenance inspections Record  startups, shutdowns, malfunctions, periods where 7 monitoring system is inoperative  monitoring data and monitoring system calibration checks b. Respondent Activities  Read instructions  Install, calibrate, and maintain control systems and monitoring equipment  Perform performance test  Write the notifications and reports listed above  Enter information required to be recorded above.

Some of the monitoring equipment provides monitoring parameters in an automated way ( e. g., flow indicators); however, personnel at the facility still need to evaluate the data. Electronic submissions are not commonly used at this time. Although regulated agencies are encouraging facilities to submit reports on disk. Records are required to be retained for 2 years.

5. The Information Collected  Agency Activities, Collection Methodology, and Information Management 5( a) Agency Activities EPA conducts the following activities in connection with the acquisition, analysis, storage, and distribution of the information required under 40 CFR Subpart L benzene coke by product recovery plants:

 Observes initial performance tests and repeat performance tests, if necessary.

 Reviews notifications and reports, including performance test reports, and excess emissions reports, required to be submitted by industry.

 Audits facility records.

 Inputs and maintains data in the Aerometric Information Retrieval System ( AIRS) database.

5( b) Collection Methodology and Management Following notification of startup, the reviewing authority might inspect the source to 8 determine whether the pollution control devices are properly installed and operated. Performance test reports are used by the Agency to discern a source's initial capability to comply with the emission standard, and note the operating conditions under which compliance was achieved. Data and records maintained by the respondents are tabulated and published for use in compliance and enforcement programs. The semiannual or quarterly reports are used for problem identification, as a check on source operation and maintenance, and for compliance determinations.

Information contained in the reports is entered into AIRS which is operated and maintained by EPA's Office of Air Quality Planning and Standards. AIRS is EPA's database for the collection, maintenance, and retrieval of compliance and annual emission inventory data for over 100,000 industrial and government owned facilities. EPA uses AIRS for tracking air pollution compliance and enforcement by local and State regulatory agencies and EPA Regional Offices and Headquarters. EPA and its delegated authorities can edit, store, retrieve and analyze the data. The records required by this regulation must be retained by the owner or operator for 2 years.

5( c) Small Entity Flexibility There are no small businesses affected by this standard.

5( d) Collection Schedule The specific frequency for each information collection activity within this request is shown in Table 2.

6. Estimating the Burden and Cost of the Collection Table 2 documents the computation of individual burdens for each of the record keeping and reporting requirements applicable to the industry. The individual burdens are expressed under standardized headings believed to be consistent with the concept of burden under the Paperwork Reduction Act. Where appropriate, specific tasks and major assumptions have been identified. Responses to this information collection are mandatory. The Agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number.

6( a) Estimating Respondent Burden The average annual burden to industry over the next three years from these record keeping and reporting requirements is estimated at 7,083 person hours. These hours are based on Agency studies and background documents from the development of the standards or test methods, Agency knowledge and experience with the NESHAP program, the previously approved ICR, and any comments received. 9 6( b) Estimating Respondent Costs ( i) Estimating Labor Costs This ICR uses labor rates of $ 21.16 per hour plus 110 percent overhead ( for a total cost per hour of $ 44.44) from the United States Department of Commerce Bureau of Labor Statistics, March 2000, Table 2: Employment Costs for Civilian Workers by Occupational and Industry Group.

ii) Estimating Capital and Operations and Maintenance Costs The only type of industry costs associated with the information collection activity in the standards is labor cost. There are no capital or operations and maintenance costs.

( iii) Capital/ Start up vs. Operating and Maintenance ( O& M) Costs None 6( c) Estimating Agency Burden and Cost The only Federal costs are user costs associated with analysis of the reported information. Publication and distribution of the information are part of the AIRS program. Examination of records to be maintained by the respondents will occur as part of the periodic inspection of sources, which is part of EPA's overall compliance and enforcement program.

The average annual Federal government cost during the three years of the ICR is estimated to be $ 17,088. This cost is based on an average wage of $ 22.86 per hour and a 110 percent overhead rate ( for a total cost per hour of $ 48.01). Details upon which this estimate is based appear in Table 1. A breakdown of costs by cost category is presented as follows:

Average Direct Personnel Cost $ 12,888 ( including overhead)

Other Direct Costs $ 4,200 ___________

TOTAL ANNUAL COST $ 17,088/ yr 10 6( d) Estimating the Respondent Universe and Total Burden and Costs The number of existing sources subject to benzene emissions from coke by product recovery plants subpart L is 36. The number of new sources subject to benzene Emissions from Coke By product Recovery Plants Subpart L is zero. There is no annual labor, capital and O& M costs associated with this ICR. Details upon which this estimate is based appear in Table 2: Industry Burden.

6( e) Bottom Line Burden Hours and Cost Tables See attached table 6( f) Reasons for Change in Burden The decrease in burden from the most recently approved ICR reflects the inclusion of appropriate burden hours and costs within the Reporting & Recordkeeping Requirements of the Consolidated Federal Air Rule ( CAR) for the Synthetic Organic Chemical Manufacturing Industry, EPA ICR No. 1854.

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

Send comments on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including through the use of automated collection techniques to the Director, Collection Strategies Division, U. S. Environmental Protection Agency ( 2822), 1200 Pennsylvania Ave., N. W., Washington, D. C. 20460; and to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, DC 20503, Attention: Desk Officer for EPA. Include the EPA ICR number 1080.10 and OMB control number 2060 0185 in any correspondence. 11 Part B of the Supporting Statement This part is not applicable because no statistical methods were used in collecting this information.

Section B ( Subpart Y)

1. Identification of the Information Collection 1( a) Title of the Information Collection ICR for NESHAP, SUBPART Y  Benzene Emissions from Benzene Storage Vessels 1( b) Short Characterization/ Abstract The National Emission Standards for Hazardous Air Pollutants ( NESHAP) for Benzene Emissions from Benzene Storage Vessels were proposed in 1980 and withdrawn by EPA on June 6, 1984 ( 49 FR 23558). These standards apply to each storage vessel that is storing benzene with a design storage capacity greater than or equal to 38 cubic meters ( 10,000 gallons). Storage vessels with a design storage capacity less than 38 cubic meters ( 10,000 gallons) are exempt from the provisions of this subpart. Storage vessels used for storing benzene at coke by product facilities or vessels permanently attached to motor vehicles such as trucks, rail cars, barges, or ships or pressure vessels designed to operate in excess of 204.9 kPa and without emissions to the atmosphere are also exempt from this subpart. Approximately 4 existing sources are currently subject to the standard, and it is estimated that no additional sources will become subject to the standard in the next three years. This information is being collected to assure compliance with 40 CFR Part 60, 61, 63 Subpart Y.

All owners and operators of new or reconstructed plants would also have to respond. However, the burden of monitoring, reporting and record keeping for new benzene storage vessels was included in the burden estimate for the New Source Performance Standards ( NSPS) for storage vessels at 40 CFR 60, Subpart Kb, which has similar monitoring, reporting and record keeping requirements. To avoid double counting, no burden for new sources is estimated here.

In the General Provisions of 40 CFR Part 61 applicable to storage vessels, up to four separate one time only reports are required for each owner or operator: notification of construction or reconstruction, initial source report, notification of physical/ operational changes, notification of anticipated and actual startup. These notifications, reports, and records are essential in determining compliance; and are required, in general, of all sources subject to NESHAPs. 12 Any owner or operator subject to the provisions of this part shall maintain a file of these measurements, and retain the file for at least 2 years following the date of such reports and records. Approximately 4 sources are currently subject to the standard, and no other additional sources are estimated to become subject to the standard in the next three years. The cost of this ICR will be $ 2,649 dollars.

All reports are sent to the delegated State or Local authority. In the event that there is no such delegated authority, the reports are sent directly to the EPA Regional Office.

2. Need for and Use of the Collection 2( a) Need/ Authority for the Collection The EPA is charged under Section 112 of the Clean Air Act, as amended, to establish standards of performance for each category or subcategory of major sources and area sources of hazardous air pollutants. These standards are applicable to new or existing sources of hazardous air pollutants and shall require the maximum degree of emission reduction. In addition, Section 114( a) states that:

. . . the Administrator may require any owner or operator subject to any requirement of this Act to ( A) establish and maintain such records, ( B) make such reports, ( C) install, use, and maintain such monitoring equipment or methods ( in accordance with such methods at such locations, at such intervals, and in such manner as the Administrator shall prescribe), ( D) sample such emissions, ( E) keep records on control equipment parameters, production variables or other indirect data when direct monitoring of emissions is impractical, ( F) submit compliance certifications, and ( G) provide such other information as he may reasonably require.

In the Administrator's judgment, Benzene from Storage Vessels cause or contribute to air pollution that may reasonably be anticipated to endanger public health or welfare. Therefore, NESHAP was promulgated for this source category at 40 CFR Part 61 Subpart Y.

2( b) PRACTICAL UTILITY/ USERS OF THE DATA The control of emissions of benzene from storage vessels requires not only the installation of properly designed equipment, but also the operation and maintenance of that equipment. Emissions of benzene from storage vessels are the result of operation of each storage vessel that is storing benzene with a design storage capacity greater than or equal to 38 cubic meters ( 10,000 gallons). These standards rely on the capture reduction of benzene emissions by vapor recovery systems ( VRS). The required notifications are used to inform the Agency or delegated authority when a source becomes subject to the standard. The reviewing authority may then inspect the source to check if the pollution control devices are properly installed and operated and the standard is being met. These records and reports are made to ensure compliance with the 13 standard on a continuous basis. Quarterly excess emission reports are required for closed vent systems with control devices. The frequencies of these reports were chosen by the Agency as the least frequent periods that still provide an adequate margin of assurance that facilities subject to the standard will not operate for extended periods in violation of the standard. Data collection and reporting on a less frequent basis would decrease the margin of assurance that facilities are in compliance with the standard.

3. Nonduplication, Consultations, and Other Collection Criteria 3( a) Nonduplication The record keeping and reporting requested is required under 40 CFR Part 61 Subpart Y. If the standard has not been delegated, the information is sent to the appropriate EPA Regional Office. Otherwise, the information is sent directly to the delegated State or local agency. If a State or local agency has adopted their own similar regulation to implement the Federal regulation, a copy of the report submitted to the State or local agency can be sent to the Administrator in lieu of the report required by the Federal standard. Therefore, no duplication exists.

3( b) Public Notice Required Prior to ICR Submission to OMB An announcement of a public comment period for the renewal of this ICR was published in the Federal Register on July 12, 1999 ( 64 FR 37530).

3( c) Consultations No comments were received on the burden published in the Federal Register.

3( d) Effects of Less Frequent Collection Less frequent information collection would decrease the margin of assurance that facilities are continuing to meet the required standards. Requirements for information gathering and record keeping are useful techniques to ensure that good operation and maintenance practices are applied and emission limitations are met. If the information required by these standards was collected less frequently, the likelihood of detecting poor operation and maintenance of control equipment and noncompliance would decrease.

3( e) General Guidelines None of the reporting or record keeping requirements contained in 40 CFR Part 61 Subpart Y or otherwise pertinent to this request violates any of the regulations established by OMB in 5 CFR 1320.6. 14 3( f) Confidentiality The required information consists of emissions data and other information that have been determined not to be private. However, any information submitted to the Agency for which a claim of confidentiality is made will be safeguarded according to the Agency policies set forth in Title 40, Chapter 1, Part 2, Subpart B  Confidentiality of Business Information ( see 40 CFR 2; 41 FR 36902, September 1, 1976; amended by 43 FR 40000, September 8, 1978; 43 FR 42251, September 20, 1978; 44 FR 17674, March 23, 1979).

3( g) Sensitive Questions None of the reporting or record keeping requirements contained in ( 40 CFR Part 61 Subpart Y or otherwise pertinent to this request contain sensitive questions.

4. The Respondents and the Information Requested 4( a) Respondents/ SIC Codes The respondents of the record keeping and reporting requirements are Petroleum Refining ( SIC Code 2911), Plastics Materials and Synthetic Resins, Synthetic ( SIC Code 282 ), and Industrial Organic Chemicals ( SIC Code 286) a design storage capacity greater than or equal to 38 cubic meters ( 10,000 gallons) for which construction and operation commenced after September 14, 1989. An initial source report is the only one of these record keeping and reporting requirements that would be required from existing sources prior to September 14, 1989.

4( b) INFORMATION REQUESTED ( I) Data Items All data in this ICR that is recorded and/ or reported is required by 40 CFR Part 61 Subpart Y Benzene Emissions from Benzene Storage Vessels.

A source must make the following reports Provide notification of:

 Construction or reconstruction ( 61.06 )

 Construction or modification application ( 61.07)

 Initial source reports ( 61.274) 15  Physical/ operational changes ( 61.15)

 Anticipated and actual startup ( 61.09)

 Control installation and refill at first ( 61.275)

IFR degassing ( 61.275)

Report on:

 Annual inspections for IFR ( 61.275 a)

 Periodic inspections for IFR ( 61.275 a)

 5 or 10 year internal inspections for IFR ( 61.272 a( 3))

 Annual seal gap measurements for EFR ( 61.272)

 5 year seal gap measurements for EFR ( 61.272)

 Supplemental delay report ( 61.275)

 Quarterly excess emission for closed vent system with control devices ( 61.275 e)

 Annual IFR internal inspections and EFR seal gap ( 61.272)

Record  Inspections for 2 years ( 61.276a)

 Dimension and capacity of the storage vessel, for life ( 61.276b)

 Operating plan of the control device, for life ( 61.276b)

 Monitored parameters and maintenance for 2 years. ( 61.276)

 Information on closed vent systems with control devices ( 61.276)

b. Respondent Activities  Read Instructions 16  write the notifications and reports listed above  enter information required to be recorded above.

 submit the required reports developing, acquiring, installing, and utilizing technology and systems for the purpose of collecting, validating, and verifying information;

 developing, acquiring, installing, and utilizing technology and systems for the purpose of processing and maintaining information;

 developing, acquiring, installing, and utilizing technology and systems for the purpose of disclosing and providing information;

 adjusting the existing ways to comply with any previously applicable instructions and requirements;

 training personnel to be able to respond to a collection of information;

 transmitting, or otherwise disclosing the information Records are required to be retained for 2 Years.

5. The Information Collected  Agency Activities, Collection Methodology, and Information Management 5( a) Agency Activities EPA conducts the following activities in connection with the acquisition, analysis, storage, and distribution of the information required under 40 CFR Subpart Y Benzene Emissions from Benzene Storage Vessels  Observes initial performance tests and repeat performance tests if necessary  Reviews notifications and reports, including performance test reports, and excess emissions reports, required to be submitted by industry  Audits facility records  Inputs and maintains data in the Aerometric Information Retrieval System ( AIRS) database 5( b) Collection Methodology and Management 17 Following notification of startup, the reviewing authority might inspect the source to determine whether the pollution control devices are properly installed and operated. Performance test reports are used by the Agency to discern a source's initial capability to comply with the emission standard, and note the operating conditions under which compliance was achieved. Data and records maintained by the respondents are tabulated and published for use in compliance and enforcement programs. The semiannual or quarterly reports are used for problem identification, as a check on source operation and maintenance, and for compliance determinations.

Information contained in the reports is entered into AIRS which is operated and maintained by EPA's Office of Air Quality Planning and Standards. AIRS is EPA's database for the collection, maintenance, and retrieval of compliance and annual emission inventory data for over 100,000 industrial and government owned facilities. EPA uses AIRS for tracking air pollution compliance and enforcement by Local and State regulatory agencies, and EPA Regional Offices and Headquarters. EPA and its delegated Authorities can edit, store, retrieve and analyze the data.

The records required by this regulation must be retained by the owner or operator for two years.

5( c) Small Entity Flexibility There are no small businesses affected by this standard.

5( d) Collection Schedule The specific frequency for each information collection activity within this request is shown on Table 2.

6. Estimating the Burden and Cost of the Collection Table 2 documents the computation of individual burdens for each of the record keeping and reporting requirements applicable to the industry. The individual burdens are expressed under standardized headings believed to be consistent with the concept of burden under the Paperwork Reduction Act. Where appropriate, specific tasks and major assumptions have been identified. Responses to this information collection are mandatory. The Agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number.

6( a) Estimating Respondent Burden The average annual burden to industry over the next three years from these record keeping and reporting requirements is estimated at 48 person hours. These hours are based on Agency 18 studies and background documents from the development of the standards or test methods, Agency knowledge and experience with the NESHAP program, the previously approved ICR, and any comments received.

6( b) Estimating Respondent Costs ( I) Estimating Labor Costs This ICR uses labor rates of $ 21.16 per hour plus 110 percent overhead ( for a total cost per hour of $ 44.44) from the United States Department of Commerce Bureau of Labor Statistics, March 2000, Table 2: Employment Costs for Civilian Workers by Occupational and Industry Group.

( ii) Estimating Capital and Operations and Maintenance Costs The only type of industry cost associated with the information collection activity in the standards is labor cost. There are no capital or operations and maintenance costs.

( iii) Capital/ Start up vs. Operating and Maintenance ( O& M) Costs None 6( c) Estimating Agency Burden and Cost The only Federal costs are user costs associated with analysis of the reported information. Publication and distribution of the information are part of the AIRS program. Examination of records to be maintained by the respondents will occur as part of the periodic inspection of sources, which is part of EPA's overall compliance and enforcement program.

The average annual Federal Government cost during the three years of the ICR is estimated to be $ 17,088. This cost is based on an average wage of $ 22.86 per hour and a 110 percent overhead rate ( for a total cost per hour of $ 48.01). Details upon which this estimate is based appear in Table 1. A breakdown of costs by cost category is presented as follows:

Average Direct Personnel Cost $ 12,888 ( including overhead)

Other Direct Costs $ 4,200 ___________

TOTAL ANNUAL COST $ 17,088/ yr 19 6( d) Estimating the Respondent Universe and Total Burden and Costs The number of existing sources subject to Benzene Emissions from Benzene Storage Vessels subpart Y is 4. The number of new sources subject to Benzene Emissions from Benzene Storage Vessels subpart Y is zero. There is no annual labor, capital and O& M costs associated with this ICR. Details upon which this estimate is based appear in Table 2: Industry Burden.

6( e) Bottom Line Burden Hours and Cost Tables See attached table 6( f) Reasons for Change in Burden The decrease in burden from the most recently approved ICR reflects the inclusion of appropriate burden hours and costs within the Reporting & Recordkeeping Requirements of the Consolidated Federal Air Rule ( CAR) for the Synthetic Organic Chemical Manufacturing Industry, EPA ICR No. 1854.

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

Send comments on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including through the use of automated collection techniques to the Director, Collection Strategies Division, U. S. Environmental Protection Agency ( 2822), 1200 Pennsylvania Ave., N. W., Washington, D. C. 20460; and to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, DC 20503, Attention: Desk Officer for EPA. Include the EPA ICR number 1080.10 and OMB control number 2060 0185 in any correspondence.

Part B of the Supporting Statement This part is not applicable because no statistical methods were used in collecting this information.


[Federal Register Volume 84, Number 96 (Friday, May 17, 2019)]
[Notices]
[Pages 22496-22498]
[FR Doc No: 2019-10291]

-----------------------------------------------------------------------

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2012-N-0977]

Agency Information Collection Activities; Proposed Collection;
Comment Request; Regulations Restricting the Sale and Distribution of
Cigarettes and Smokeless Tobacco To Protect Children and Adolescents

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Food and Drug Administration (FDA or Agency) is announcing
an opportunity for public comment on the proposed collection of certain
information by the Agency. Under the Paperwork Reduction Act of 1995
(PRA), Federal Agencies are required to publish notice in the Federal
Register concerning each proposed collection of information, including
each proposed extension of an existing collection of information, and
to allow 60 days for public comment in response to the notice. This
notice solicits comments on the information collection for the
regulations restricting the sale and distribution of cigarettes and
smokeless tobacco to protect children and adolescents.

DATES: Submit either electronic or written comments on the collection
of information by July 16, 2019.

ADDRESSES: You may submit comments as follows. Please note that late,
untimely filed comments will not be considered. Electronic comments
must be submitted on or before July 16, 2019. The https://www.regulations.gov electronic filing system will accept comments until
11:59 p.m. Eastern Time at the end of July 16, 2019. Comments received
by mail/hand delivery/courier (for written/paper submissions) will be
considered timely if they are postmarked or the delivery service
acceptance receipt is on or before that date.

Electronic Submissions

    Submit electronic comments in the following way:
     Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments. Comments submitted
electronically, including attachments, to https://www.regulations.gov
will be posted to the docket unchanged. Because your comment will be
made public, you are solely responsible for ensuring that your comment
does not include any confidential information that you or a third party
may not wish to be posted, such as medical information, your or anyone
else's Social Security number, or confidential business information,
such as a manufacturing process. Please note that if you include your
name, contact information, or other information that identifies you in
the body of your

comments, that information will be posted on https://www.regulations.gov.
     If you want to submit a comment with confidential
information that you do not wish to be made available to the public,
submit the comment as a written/paper submission and in the manner
detailed (see ``Written/Paper Submissions'' and ``Instructions'').

Written/Paper Submissions

    Submit written/paper submissions as follows:
     Mail/Hand Delivery/Courier (for written/paper
submissions): Dockets Management Staff (HFA-305), Food and Drug
Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
     For written/paper comments submitted to the Dockets
Management Staff, FDA will post your comment, as well as any
attachments, except for information submitted, marked and identified,
as confidential, if submitted as detailed in ``Instructions.''
    Instructions: All submissions received must include the Docket No.
FDA-2012-N-0977 for ``Regulations Restricting the Sale and Distribution
of Cigarettes and Smokeless Tobacco to Protect Children and
Adolescents.'' Received comments, those filed in a timely manner (see
ADDRESSES), will be placed in the docket and, except for those
submitted as ``Confidential Submissions,'' publicly viewable at https://www.regulations.gov or at the Dockets Management Staff between 9 a.m.
and 4 p.m., Monday through Friday.
     Confidential Submissions--To submit a comment with
confidential information that you do not wish to be made publicly
available, submit your comments only as a written/paper submission. You
should submit two copies total. One copy will include the information
you claim to be confidential with a heading or cover note that states
``THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION.'' The Agency will
review this copy, including the claimed confidential information, in
its consideration of comments. The second copy, which will have the
claimed confidential information redacted/blacked out, will be
available for public viewing and posted on https://www.regulations.gov.
Submit both copies to the Dockets Management Staff. If you do not wish
your name and contact information to be made publicly available, you
can provide this information on the cover sheet and not in the body of
your comments and you must identify this information as
``confidential.'' Any information marked as ``confidential'' will not
be disclosed except in accordance with 21 CFR 10.20 and other
applicable disclosure law. For more information about FDA's posting of
comments to public dockets, see 80 FR 56469, September 18, 2015, or
access the information at: https://www.gpo.gov/fdsys/pkg/FR-2015-09-18/pdf/2015-23389.pdf.
    Docket: For access to the docket to read background documents or
the electronic and written/paper comments received, go to https://www.regulations.gov and insert the docket number, found in brackets in
the heading of this document, into the ``Search'' box and follow the
prompts and/or go to the Dockets Management Staff, 5630 Fishers Lane,
Rm. 1061, Rockville, MD 20852.

FOR FURTHER INFORMATION CONTACT: Amber Sanford, Office of Operations,
Food and Drug Administration, Three White Flint North, 10A-12M, 11601
Landsdown St., North Bethesda, MD 20852,<PHONE_NUMBER>,
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), Federal
Agencies must obtain approval from the Office of Management and Budget
(OMB) for each collection of information they conduct or sponsor.
``Collection of information'' is defined in 44 U.S.C. 3502(3) and 5 CFR
1320.3(c) and includes Agency requests or requirements that members of
the public submit reports, keep records, or provide information to a
third party. Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3506(c)(2)(A))
requires Federal Agencies to provide a 60-day notice in the Federal
Register concerning each proposed collection of information, including
each proposed extension of an existing collection of information,
before submitting the collection to OMB for approval. To comply with
this requirement, FDA is publishing notice of the proposed collection
of information set forth in this document.
    With respect to the following collection of information, FDA
invites comments on these topics: (1) Whether the proposed collection
of information is necessary for the proper performance of FDA's
functions, including whether the information will have practical
utility; (2) the accuracy of FDA's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (3) ways to enhance the quality,
utility, and clarity of the information to be collected; and (4) ways
to minimize the burden of the collection of information on respondents,
including through the use of automated collection techniques, when
appropriate, and other forms of information technology.

Regulations Restricting the Sale and Distribution of Cigarettes and
Smokeless Tobacco To Protect Children and Adolescents--21 CFR 1140.30

OMB Control Number 0910-0312--Extension

    This is a request for an extension of OMB approval for the
information collection requirements contained in FDA's regulations for
cigarettes and smokeless tobacco containing nicotine. The regulations
that are codified at 21 CFR part 1140 are authorized by section 102 of
the Family Smoking Prevention and Tobacco Control Act (Tobacco Control
Act) (Pub. L. 111-31). Section 102 of the Tobacco Control Act required
FDA to publish a final rule regarding cigarettes and smokeless tobacco
identical in its provisions to the regulation issued by FDA in 1996 (61
FR 44396, August 28, 1996), with certain specified exceptions including
that subpart C (which included 21 CFR 897.24) and 897.32(c) be removed
from the reissued rule (section 102(a)(2)(B)). The reissued final rule
was published in the Federal Register of March 19, 2010 (75 FR 13225).
    This collection includes reporting information requirements for
Sec.  1140.30 which directs persons to notify FDA if they intend to use
a form of advertising that is not addressed in the regulations and not
originally described in the March 19, 2010, final rule. Section 1140.30
requires manufacturers, distributors, and retailers to (1) observe
certain format and content requirements for labeling and advertising
and (2) notify FDA if they intend to use an advertising medium that is
not listed in the regulations. The concept of permitted advertising in
Sec.  1140.30 is sufficiently broad to encompass most forms of
advertising.
    FDA estimates the burden of this collection of information as
follows:

                                                     Table 1--Estimated Annual Reporting Burden \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Number of
                           21 CFR section                               Number of      responses per     Total annual    Average burden    Total hours
                                                                       respondents       respondent       responses       per response
--------------------------------------------------------------------------------------------------------------------------------------------------------
1140.30--Scope of permissible forms of labeling and advertising....              25                1               25                1               25
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ There are no capital costs or operating and maintenance costs associated with this collection of information.

    The burden hour estimates for this collection of information were
based on industry-prepared data and information regarding cigarette and
smokeless tobacco product advertising expenditures.
    FDA estimates that approximately 25 respondents will submit an
annual notice of alternative advertising, and the Agency has estimated
it should take 1 hour to provide such notice. Therefore, FDA estimates
that the total time required for this collection of information is 25
hours.
    We have adjusted our burden estimate to approximately 25
notifications annually, which more accurately reflects the current
number of submissions under this regulation. This is a decrease to the
currently approved burden. The decrease in notifications is not
unexpected given that the regulation applies to cigarettes and
smokeless tobacco and many of the alternative media notifications have
been made in previous years.

    Dated: May 14, 2019.
Lowell J. Schiller,
Principal Associate Commissioner for Policy.
[FR Doc. 2019-10291 Filed 5-16-19; 8:45 am]
BILLING CODE 4164-01-P


efficiency, safety, and environmental concerns may result in disruption
of primary firm service. The Commission also cited recent Commission
orders clarifying that one-time outages of primary firm service, if
necessary to comply with government orders, may be treated as force
majeure outages, for which only partial reservation charge credits are
required.\86\ The Commission requested comments on whether it should
make any adjustments to its current reservation charge crediting policy
in light of the Proposed Policy Statement.\87\
---------------------------------------------------------------------------

    \86\ See, e.g., TransColorado Gas Transmission Co. LLC, 144 FERC
] 61,175 (2013) (TransColorado); Gulf South, 144 FERC ] 61,215.
    \87\ Proposed Policy Statement at P 34.

---------------------------------------------------------------------------

a. Comments
    103. The pipeline industry generally advocated that the Commission
modify its policy requiring pipelines to pay reservation charge credits
starting on Day One for disruption of primary firm service required by
either voluntary or mandatory system improvements eligible for
surcharge cost recovery. They contend that the pipeline modernization
programs under consideration are not representative of pipeline
mismanagement and are significantly different than conducting routine
maintenance,\88\ and thus the Commission should not impose any
reservation charge crediting requirement or at least treat any
resulting outages as force majeure events requiring only partial
reservation charge credits. INGAA also argued that the Commission
should explicitly provide that costs to comply with other statutory and
regulatory requirements, such as hydrostatic testing to confirm maximum
pressure levels, are not subject to reservation charge credits.\89\
INGAA also argues, however, that to the extent that a pipeline must pay
reservation charge credits for a service outage required by a system
improvement eligible for surcharge cost recovery, it should be
permitted to recover such crediting costs through the modernization
cost recovery tracker.\90\ Columbia Gas urges the Commission to extend
its policy of granting partial reservation charge credits to outages
due to construction of eligible modernization projects.\91\
---------------------------------------------------------------------------

    \88\ INGAA Comments at 15-18.
    \89\ INGAA Comments at 18.
    \90\ INGAA Comments at 18-19. KM Comments at 8 (agreeing with
INGAA that reservation charge crediting not apply for interruptions
of firm service when pipelines are performing either voluntary or
mandatory maintenance to improve safe and efficient operations.).
    \91\ Columbia Gas Comments at 36. Boardwalk suggests the
Commission should modify its current reservation charge crediting
policy to allow for a more equitable balancing of the risks between
pipelines and their customers for service disruptions caused by
testing, repair or replacement activities taken to comply with the
new PHMSA rules. (Boardwalk Comments at 24.).
---------------------------------------------------------------------------

    104. Shippers and various state commissions encourage the
Commission to require pipelines with modernization cost trackers to
provide full reservation charge credits during periods that the
pipeline must interrupt primary firm service to replace or install
eligible facilities under the provisions of the modernization
tracker.\92\ NCUC states that full reservation charge credits will
provide pipelines a stronger incentive to schedule any necessary
construction or modification of facilities required to comply with any
new regulations in an efficient manner.\93\ Likewise, while PGC, APGA,
IPAA, and NGSA oppose the implementation of modernization cost
trackers, they request that to the extent the Commission chooses to
allow their implementation, it modify its reservation charge crediting
policy to require pipelines with modernization cost trackers to provide
full reservation charge credits to firm customers during any period
that the pipeline must interrupt primary firm service to replace or
install eligible facilities.\94\
---------------------------------------------------------------------------

    \92\ Michigan PSC Comments at 20. IECA and American Midstream do
not support changes to the existing reservation charge credits. IECA
Comments at 21; American Midstream Comments at 8.
    \93\ NCUC Comments at 34.
    \94\ PGC Comments at 20, APGA Comments at 22, IPAA Comments at
3, 26-27, NGSA Comments at 13, 25.
---------------------------------------------------------------------------

b. Determination
    105. The Commission's current reservation charge crediting policies
require pipelines to provide some level of reservation charge credits
whenever the pipeline is unable to schedule reserved primary firm
service because of a government action. The level of credits to be
provided turns on whether the government action is considered a force
majeure event.\95\
---------------------------------------------------------------------------

    \95\ Tennessee Gas Pipeline Co., L.L.C., 139 FERC ] 61,050, at
PP 80-82 (2012). Texas Eastern Transmission, LP, 149 FERC ] 61,143,
at PP 121-123 (2014).
---------------------------------------------------------------------------

    106. The Commission has defined force majeure outages as events
that are both ``unexpected and uncontrollable.'' In TransColorado \96\
and Gulf South,\97\ the Commission clarified the basic distinction as
to whether outages resulting from governmental actions are force
majeure or non-force majeure events. The Commission found that outages
necessitated by compliance with government standards concerning the
regular, periodic maintenance activities a pipeline must perform in the
ordinary course of business to ensure the safe operation of the
pipeline, including PHMSA's integrity management regulations, are non-
force majeure events requiring full reservation credits. Outages
resulting from one-time, non-recurring government requirements,
including special, one-time testing requirements after a pipeline
failure, are force majeure events requiring only partial crediting.
---------------------------------------------------------------------------

    \96\ TransColorado, 144 FERC ] 61,175 at PP 35-43.
    \97\ Gulf South, 144 FERC ] 61,215 at PP 31-34.
---------------------------------------------------------------------------

    107. In Gulf South, the Commission explained that this distinction
is reasonable for two reasons. First, the pipeline is likely to have
greater discretion as to when it performs regular, periodic maintenance
on particular pipeline segments than when the government orders special
one-time testing, for example after a pipeline failure. Thus, regular,
periodic maintenance required by government regulation may be
considered reasonably within the control of the pipeline and expected,
in contrast to one-time, non-recurring government requirements, which
the pipeline may have to implement within a short timeframe. Second,
the recurring costs of regular, periodic maintenance performed in the
ordinary course of business may be included in a pipeline's rates in a
general NGA section 4 rate case, whereas one-time, non-recurring costs
are generally not eligible for inclusion in a pipeline's rates in a
section 4 rate case. The Commission explained that because the full
crediting policy is premised on the ability of the pipeline to recover
the costs associated with that policy through its rates, it follows
that eligibility for such cost recovery is an important factor in
distinguishing between the types of government testing and maintenance
requirements that trigger the full crediting requirement and those that
only trigger a partial crediting requirement.\98\ Thus, under
TransColorado and Gulf South, outages resulting from one-time non-
recurring government requirements that (1) are not part of the
pipeline's routine, periodic maintenance programs and (2) provide the
pipeline little discretion as to when the outage occurs, qualify as
force majeure events.
---------------------------------------------------------------------------

    \98\ Texas Eastern, 149 FERC ] 61,143 at P 123.
---------------------------------------------------------------------------

    108. Against this background, we recognize that facility upgrade
and replacement projects whose costs would be eligible for recovery
under a modernization tracker do not lend themselves easily to the
governmental action force majeure/non-force majeure distinction
described above. On the one hand, such projects do not constitute
routine periodic maintenance of the type for which the Commission
requires full reservation charge credits; in fact, the Commission has
held that such routine maintenance costs are not eligible for inclusion
in a modernization cost tracker. Moreover, because each project
constitutes a one-time, non-recurring event, any reservation charge
credits provided by the pipeline would not be a recurring cost eligible
for recovery in a pipeline's NGA section 4 general rate case. On the
other hand, pipelines will likely have considerable discretion as to
the timing of when they perform each project, with projects likely to
be scheduled and performed

over a multi-year period. Therefore, the projects are not unexpected in
the sense ordinarily required for treatment as a force majeure event.
    109. In these circumstances, the Commission believes the issue of
reservation charge credits for projects included in a modernization
cost tracker is best addressed, at least initially, on a case-by-case
basis in each proceeding in which a pipeline proposes such a tracker.
In its filing to establish a tracker, the pipeline should state the
extent to which it anticipates that any particular project will disrupt
primary firm service, explain why it expects it will not be able to
continue to provide firm service, and describe what arrangements the
pipeline intends to make to mitigate the disruption or provide
alternative methods of providing service. To the extent a pipeline
incurs costs to make temporary alternative arrangements to provide
service while a project is under construction, such as through
temporary line bypasses or natural gas tankers, such costs may be
considered for inclusion in the tracker. However, if a modernization
project unavoidably causes an outage of primary firm service, the
Commission believes that pipelines should provide some relief from the
payment of reservation charge to shippers directly affected by that
outage. To the extent the pipeline provides such shippers full
reservation charge credits, the Commission would consider proposals for
the pipeline to recover such costs through the tracker, consistent with
the Commission's policy that pipelines may recover the costs of full
reservation charge credits in rates. Alternatively, the Commission
would consider partial reservation charge crediting methods tailored to
the circumstances of the projects included in the tracker.
3. Other Issues
    110. The Commission sought comments on any other issues or factors
interested parties though the Commission should consider for inclusion
in the Policy Statement as a prerequisite for approving a modernization
cost recovery mechanism.\99\ The Commission received comments on a
variety of proposals on additional items to include in the Policy
Statement, including return on equity, and formula rates.
---------------------------------------------------------------------------

    \99\ Because the Policy Statement would address issues
pertaining to the Commission's review of natural gas rate filings,
the statement is categorically excluded from the requirements of the
National Environmental Policy Act (NEPA), thus neither an
environmental assessment nor an environmental impact statement is
required. See 18 CFR 380.4(a)(25) (2014).
---------------------------------------------------------------------------

a. Return on Equity
    111. EPMCG, MDG, APGA and the NYPSC argue that if the portion of
capital investment subject to a tracker is significant to the
pipeline's rate base, then the Commission should adjust downward the
pipeline's allowed rate of return on equity to reflect the decreased
risk that the pipeline has to recover its cost of investment given the
existence of a tracker.\100\ IPAA and NGSA also argue that the plant
facilities to be constructed pursuant to the proposed modernization
surcharge should not be eligible to earn a rate of return and taxes,
because these facilities are not included in a pipeline's rate base
through an NGA general section 4 rate filing.\101\
---------------------------------------------------------------------------

    \100\ EPMCG Comments at 43, APGA Comments at 22-23, and MDG
Comments at P 2, NYPSC Comments at P 1-3.
    \101\ IPAA Comments at 3, 26, NGSA Comments at 13.
---------------------------------------------------------------------------

    112. The Commission will not mandate an automatic ROE reduction for
pipelines that have a modernization surcharge or tracker. We do agree,
however, that a modernization tracker or surcharge could be a factor
that is considered as to the appropriate level of a pipeline's ROE. We
agree that considerations of return on equity reduction may be
considered during shipper and pipeline negotiations.
b. Formula Rates
    113. APGA argues that, if the Commission wants a tracker mechanism
that ensures just and reasonable rates, it must apply to the pipeline's
entire cost of service, similar to the transmission formula rates that
the Commission has approved for electric utilities under the Federal
Power Act.\102\ APGA states that the advantage of such formula rates,
most of which allow projected capital additions to be included in a
given year's formula rate and are trued up for actuals, are that the
electric utilities are assured timely recovery of capital outlays and
customers are assured that rates are premised on full and updated cost-
of-service data, including throughput, so that the over-recovery
problem associated with tracker mechanisms applicable to only a portion
of the pipeline's cost of service is obviated.
---------------------------------------------------------------------------

    \102\ APGA Comments at 11-12.
---------------------------------------------------------------------------

    114. The Commission will not adopt APGA's proposal. In the instant
proceeding the Commission is adopting a policy permitting pipelines to
recover a limited category of one-time costs through a tracker
mechanism, namely the costs of making needed upgrades for the safe and
efficient operation of the pipeline. For the reasons discussed above,
the Commission can permit this limited exception to our general policy
of requiring pipelines to design their rates based on projected units
of service, without undercutting the benefits of that policy of
providing pipeline an incentive to minimize costs and maximize the
service they provide. APGA's proposal to require pipelines to track all
changes in their cost of service, on the other hand, would eliminate
both those incentives.
c. Transparency
    115. Wisconsin Electric and Wisconsin Gas propose that the
Commission include additional transparency measures to require
pipelines to identify and track all costs associated with each project
or project phase and file a quarterly summary report detailing the
progress and completion of the projects included in the tracker. In
addition, Wisconsin Electric and Wisconsin Gas state existing service
customers should have the right to validate the premise and the
projected results of a pipeline's modernization and to audit costs.
Finally, Wisconsin Electric and Wisconsin Gas submit that the pipeline
should be required to quantify current costs that are reduced or
avoided as a result of the and net those costs out of the total
eligible cost.\103\
---------------------------------------------------------------------------

    \103\ Wisconsin Electric and Wisconsin Gas Comments at 15.
---------------------------------------------------------------------------

    116. The Commission will not adopt a policy requiring pipelines to
submit reports on its projects based on any particular schedule, or
specify the content of those reports in this Policy Statement. These
are issues that should be addressed in the individual proceedings where
each pipeline proposes a modernization cost tracker. Likewise, the
validation and quantification of costs and projects may be negotiated.
Nevertheless, a pipeline's compliance with its tariff to implement a
modernization cost tracker may be subject to scrutiny through a
Commission audit.
d. Proposed Certificate Policy Modifications
    117. Columbia Gas proposes that the Commission undertake a review
and implement a ``fast track'' processing for NGA 7(c) projects that
involve replacement of older vintage pipelines, like bare steel
replacement, or involve an important public safety aspect.\104\
Columbia Gas also comments that not all pipeline facilities are
appropriate for

replacement or upgrade because some facilities may have reached or are
close to the end of their useful life. Therefore, Columbia states a
full replacement of certain facilities may be cost prohibitive, even
with a tracker, because shippers on the facilities are unwilling or
unable to support the costs of the replacement.\105\ Similarly,
Boardwalk states abandonment of facilities that will no longer be
economic to operate because of substantial costs necessary to modify
the facilities in order to achieve compliance with new requirements may
be the best option and in the public interest.\106\
---------------------------------------------------------------------------

    \104\ Columbia Gas Comments at 37.
    \105\ Columbia Gas Comments at 21.
    \106\ Boardwalk Comments at 18-19.
---------------------------------------------------------------------------

    118. Columbia Gas' and Boardwalk's proposals are beyond the scope
of this Policy Statement, and thus we will not address them here.

III. Information Collection Statement

    119. The collection of information discussed in the Policy
Statement is being submitted to the Office of Management and Budget
(OMB) for review under section 3507(d) of the Paperwork Reduction Act
of 1995 \107\ and OMB's implementing regulations.\108\ OMB must approve
information collection requirements imposed by agency rules.
---------------------------------------------------------------------------

    \107\ 44 U.S.C. 3507(d) (2012).
    \108\ 5 CFR part 1320.
---------------------------------------------------------------------------

    120. The Commission solicits comments from the public on the
Commission's need for this information, whether the information will
have practical utility, the accuracy of the burden estimates,
recommendations to enhance the quality, utility, and clarity of the
information to be collected, and any suggested methods for minimizing
respondents' burden, including the use of automated information
techniques. The burden estimates are for implementing the information
collection requirements of this Policy Statement. The Commission asks
that any revised burden estimates submitted by commenters include the
details and assumptions used to generate the estimates.
    121. The collection of information related to this Policy Statement
falls under FERC-545A (Gas Pipeline Rates: Rate Change (Non-Formal),
Modernization Tracker).\109\ The following estimate of reporting burden
is related only to this Policy Statement.
---------------------------------------------------------------------------

    \109\ The information collection requirements in this Policy
Statement would normally be included in FERC-545 (OMB Control No.
1902-0154) which covers rate change filings made by natural gas
pipelines, including tariff changes. However, another item is
pending OMB review under FERC-545, and only one item per OMB Control
Number can be pending review at OMB at a time. Therefor in order to
submit this timely to OMB, we are using a temporary collection
number (FERC-545A) to cover the requirements implemented in PL15-1-
000.
---------------------------------------------------------------------------

    122. Public Reporting Burden: The estimated annual burden and cost
follow.

                                               FERC-545A, as Implemented in Policy Statement in PL15-1-000
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    Number of         Number of      Average burden                       Total annual
                                                                   respondents      responses per       hours per       Total annual     cost ($) \111\
                                                                      \110\          respondent         response        burden hours        (rounded)
                                                                             (1)               (2)               (3)   (1) x (2) x (3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Provide information to shippers for any surcharge proposal,                    3                 1               750             2,250         $147, 578
 and prepare modernization cost tracker filing \112\..........
Perform periodic review and provide information to show that                   3        \113\ 0.60               350               630            42,235
 both base rates and the surcharge amount remain just and
 reasonable...................................................
--------------------------------------------------------------------------------------------------------------------------------------------------------

    123. Title: FERC-545A (Gas Pipeline Rates: Rate Change (Non-
Formal), Modernization Tracker).
---------------------------------------------------------------------------

    \110\ An estimated 165 natural gas pipelines (Part 284 program)
may be affected by this Policy Statement. Of the 165 pipelines,
Commission staff estimates that 3 pipelines may choose to submit an
application for a modernization cost tracker per year.
    \111\ The most recent hourly wage figures are published by the
Bureau of Labor Statistics, U.S. Department of Labor, National
Occupational Employment and Wage Estimates, United States,
Occupation Profiles, May 2014 (available 4/1/2015) at http://www.bls.gov/oes/home.htm, and the benefits are calculated using BLS
information, at http://www.bls.gov/news.release/ecec.nr0.htm.
    The average hourly cost (salary plus benefits) to prepare the
modernization cost tracker filing is $65.59. It is the average of
the following hourly costs (salary plus benefits): Manager ($77.93,
NAICS 11-0000), Computer and mathematical ($58.17, NAICS 15-0000),
Legal ($129.68, NAICS 23-0000), Office and administrative support
($39.12, NAICS 43-0000), Accountant and auditor ($51.04, NAICS 13-
2011), Information and record clerk ($37.45, NAICS 43-4199),
Engineer ($66.74, NAICS 17-2199), Transportation, Storage, and
Distribution Manager ($64.55, NAICS 11-3071).
    The average hourly cost (salary plus benefits) to perform the
periodic review is $67.04. It is the average of the following hourly
costs (salary plus benefits): Manager ($77.93, NAICS 11-0000), Legal
($129.68, NAICS 23-0000), Office and administrative support ($39.12,
NAICS 43-0000), Accountant and auditor ($51.04, NAICS 13-2011),
Information and record clerk ($37.45, NAICS 43-4199).
    \112\ The pipeline's modernization cost tracker filing is
expected to include information to:
     Demonstrate that its current rates are just and
reasonable and that proposal includes the types of benefits that the
Commission found maintained the pipeline's incentives for innovation
and efficiency;
     identify each capital investment to be recovered by the
surcharge, the facilities to be upgraded or installed by those
projects, and an upper limit on the capital costs related to each
project to be included in the surcharge, and schedule for completing
the projects;
     establish accounting controls and procedures that it
will utilize to ensure that only identified eligible costs are
included in the tracker;
     include method for periodic review of whether the
surcharge and the pipeline's base rates remain just and reasonable;
and
     state the extent to which any particular project will
disrupt primary firm service, explain why it expects it will not be
able to continue to provide firm service, and describe what
arrangements the pipeline intends to make to mitigate the disruption
or provide alternative methods of providing service.
    \113\ Based on the Columbia case, we estimate that a review may
be required every 5 years, triggering the first pipeline reviews to
be done in Year 6 (for the pipelines which applied and received
approval in Year 1).
---------------------------------------------------------------------------

    124. Action: Proposed information collection.
    125. OMB Control No.: To be determined.
    126. Respondents: Business or other for profit enterprise (Natural
Gas Pipelines).
    127. Frequency of Responses: Ongoing.
    128. Necessity of Information: The Commission is establishing a
policy to allow interstate natural gas pipelines to seek to recover
certain capital expenditures made to modernize system infrastructure
through a surcharge mechanism, subject to certain conditions. The
information that the pipeline should share with its shippers and submit
to the Commission is intended to ensure that the resulting

rates are just and reasonable and protect natural gas consumers from
excessive costs
    129. Internal Review: The Commission has reviewed the guidance in
the Policy Statement and has determined that the information is
necessary. These requirements conform to the Commission's plan for
efficient information collection, communication, and management within
the natural gas pipeline industry. The Commission has assured itself,
by means of its internal review, that there is specific, objective
support for the burden estimates associated with the information
requirements.
    130. Interested persons may obtain information on the reporting
requirements by contacting the following: Federal Energy Regulatory
Commission, 888 First Street NE., Washington, DC 20426 [Attention:
Ellen Brown, Office of the Executive Director, email:
<EMAIL_ADDRESS>phone:<PHONE_NUMBER>, fax:<PHONE_NUMBER>].
    131. Comments concerning the collection of information and the
associated burden estimate should be sent the Commission by June 22,
2015.

IV. Document Availability

    132. In addition to publishing the full text of this document in
the Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
Internet through FERC's Home Page (http://www.ferc.gov) and in FERC's
Public Reference Room during normal business hours (8:30 a.m. to 5:00
p.m. Eastern time) at 888 First Street NE., Room 2A, Washington, DC
20426.
    133. From FERC's Home Page on the Internet, this information is
available on eLibrary. The full text of this document is available on
eLibrary in PDF and Microsoft Word format for viewing, printing, and/or
downloading. To access this document in eLibrary, type the docket
number excluding the last three digits of this document in the docket
number field.
    134. User assistance is available for eLibrary and the FERC's Web
site during normal business hours from FERC Online Support at (202)
502-6652 (toll free at 1-866-208-3676) or email at
<EMAIL_ADDRESS>or the Public Reference Room at (202) 502-
8371, TTY<PHONE_NUMBER>. Email the Public Reference Room at
<EMAIL_ADDRESS>
V. Effective Date and Congressional Notification

    135. This Policy Statement will become effective October 1, 2015.
    The Commission orders:
    The Commission adopts the Policy Statement and supporting analysis
contained in the body of this order.

    By the Commission.

    Issued: April 16, 2015.
Nathaniel J. Davis, Sr.,
Deputy Secretary.

    Note: The following appendix will not appear in the Code of
Federal Regulations.

Appendix--List of Commenters

American Forest & Paper Association
American Gas Association
American Midstream, LLC
American Public Gas Association
Beatrice Gahman
Berkshire Hathaway Energy Company
Boardwalk Pipeline Partners, LP
Calpine Corporation
Canadian Association of Petroleum Producers
CenterPoint Energy Resources Corp.
Clean Air Task Force
Columbia Gas Transmission, LLC
Deep Gulf Energy LP
El Paso Municipal Customer Group
Elizabeth Balogh
Energy XXI Ltd.
Environmental Defense Fund, Conservation Law Foundation and the
Sustainable FERC Project
Ernest J. Moniz, Secretary. United States Department of Energy
Fairfax Hutter
Helis Oil and Gas Company, L.L.C.
Independent Oil & Gas Association of West Virginia, Inc.
Independent Petroleum Association of America
Indicated Shippers
Industrial Energy Consumers of America
Interstate Natural Gas Association of America
Kansas Corporation Commission
Karen Feridum
Kinder Morgan Interstate Pipelines
Laura Pritchard
Michigan Public Service Commission
Missouri Public Service Commission
Municipal Defense Group
Natural Gas Supply Association
New York Public Service Commission
Norman W. Torkelson
North Carolina Utilities Commission
Patriots Energy Group
Pipeline Safety Coalition
Process Gas Consumers Group and the American Forest & Paper
Association
Secretary of Energy
Southern Company Services
Southern Star Central Gas Pipeline, Inc.
Tenneesse Valley Authority
Teresa Ecker
The Laclede Group, Inc.
U.S. Department of Energy
U.S. Department of Transportation, Pipeline and Hazardous Materials
Safety Administration
WBI Energy Transmission, Inc.
Western Tennessee Municipal Group
Wisconsin Electric Power Company and Wisconsin Gas LLC
Xcel Energy Companies

[FR Doc. 2015-09226 Filed 4-21-15; 8:45 am]
BILLING CODE 6717-01-P