2334ss02

SUPPORTING STATEMENT
AMENDMENTS TO NESHAP FOR PETROLEUM REFINERIES

PART A
1.0 Identification of the Information Collection
(a) Title and Number of the Information Collection.
“Amendments to NESHAP for Petroleum Refineries.” This is a supplement to the
information collection request (ICR) under OMB Control Number 2060-0340 to include the cost
of the final amendments to 40 CFR Part 63 Subpart CC.
(b) Short Characterization.
Respondents are owners or operators of existing or new petroleum refineries located in
the United States and territories that are major sources of hazardous air pollutants (HAP). The
current rule applies to miscellaneous process vents, storage vessels, wastewater streams,
equipment leaks, gasoline loading racks, and marine vessel loading operations. The final
amendments add provisions for the control of HAP emissions from heat exchange systems,
which includes closed-loop recirculation systems with cooling towers and once-through cooling
water systems. Respondents must implement a monthly sampling program to detect and repair
total strippable volatile organic compound (VOC) leaks from heat exchange systems according
to the Texas Commission on Environmental Quality’s “Air Stripping Method (Modified El Paso
Method) for Determination of Volatile Organic Compound Emissions from Water Sources”.
Exclusions are included for heat exchangers with low HAP content process fluids and high
pressure cooling water. The owner or operator must repair any leak that is greater than 6.2 parts
per million by volume (ppmv) of total strippable VOC within 45 days. Provisions also include
the delay of repair of leaks under specified conditions. Operation and maintenance requirements
for the sampling equipment require one mid-point calibration prior to each sampling event. The
final amendments include recordkeeping and reporting requirements to assure compliance with
the leak detection and repair program. The final amendments allow up to 3 years to comply with
the requirements for heat exchange systems. The information collection requirements for the

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final amendments are listed in Attachment 1. The remaining amendments clarify or correct
provisions in the current rule and do not affect information collection requirements.
2. Need For and Use of the Collection
(a)

Need/Authority for the Collection.
Section 112 of the Clean Air Act (CAA) requires EPA to establish NESHAP for each

category or subcategory of new and existing major and area sources of HAP that are listed for
regulation under CAA section 112(c). These technology-based standards require the maximum
emission reductions of HAP achievable (after considering cost, energy requirements, and non-air
quality health and environmental impacts) and are commonly referred to as maximum achievable
control technology (MACT) standards. The EPA is then required to review these technologybased standards and revise them “as necessary (taking into account developments in practices,
processes, and control technologies)” no less frequently than every 8 years, under CAA section
112(d)(6). The final amendments revise the current NESHAP for petroleum refineries to
establish MACT standards for heat exchange systems.
Certain records and reports are necessary for the Administrator to confirm the
compliance status of major sources, identify any new or reconstructed sources subject to the
standards, and confirm that the standards are being achieved on a continuous basis. These
recordkeeping and reporting requirements are specifically authorized by section 114 of the Clean
Air Act (42 U.S.C. 7414) and set out in the Part 63 NESHAP General Provisions. Under the part
63 General Provisions, the owner or operator must keep each record for 5 years following the
date of each occurrence, measurement, maintenance, corrective action, report, or record.
(b)

Use/Users of the Data.
The information will be used by the delegated authority (State agency or Regional

Administrator if there is no delegated State agency) to ensure that the emissions limits and other
requirements are being achieved. Based on review of the recorded information at the site and the
reported information, the delegated permitting authority can identify facilities that may not be in
compliance and decide which plants, records, or processes may need inspection.
3.

Nonduplication, Consultations, and Other Collection Criteria

(a)

Nonduplication.

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A computer search of EPA's ongoing ICRs revealed no duplication of informationgathering efforts.
(b) Public Notice Required Prior to ICR Submission to OMB.
This section is not applicable because this is a rule-related ICR.
(c)

Consultations.
The amendments were developed in consultation with individual plants, State agencies,

and trade associations. The non-EPA persons consulted on the information collection activities
are identified in Table 1.
TABLE 1. PERSONS CONSULTED ON THE INFORMATION COLLECTION ACTIVITIES
Contact

Organization

Telephone Number

John Wagner

American Petroleum Institute

(202) 682-8000

Steve Hagle

Texas Commission on
Environmental Quality

(512) 239-3900

David Friedman

National Petrochemical &
Refiners Association

(202) 457-0480

(d)

Effects of Less Frequent Collection.
If the relevant information were collected less frequently, the delegated permitting

authority (State or EPA) would not be reasonably assured that a plant is in compliance with the
standards.
(e)

General Guidelines.
None of the guidelines in 5 CFR 1320.6 are being exceeded.

(f)

Confidentiality.
All 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 39999, September 28, 1978; 43 FR 42251, September 28, 1978; 44 FR
17674, March 23, 1979).
(g) Sensitive Questions.

3

This section is not applicable because this ICR does not involve matters of a sensitive
nature.
4.

The Respondents and the Information Requested

(a)

Respondents/NAICS Codes.
Respondents under Subpart CC are owners or operators of any existing or new petroleum

refinery that is a major source of HAP emissions. The North American Industry Classification
System (NAICS) code for petroleum refineries is 324110. We estimate that 153 existing
refineries are subject to the current rule; one new refinery is projected during the 3 year period of
this ICR.
(b) Information Requested.
(i) Data Items, Including Recordkeeping Requirements. Attachment 1, Source Data and
Information Requirements, summarizes the data items, including recordkeeping and reporting
requirements.
(ii) Respondent Activities. The respondent activities required by the final amendments
are identified in Table 2 and are introduced in section 6(a).
5.

The Information Collected–Agency Activities, Collection Methodology, and
Information Management

(a)

Agency Activities.
The Agency activities are provided in Tables 3 and are introduced in section 6(c).

(b)

Collection Methodology and Management.
Data and records maintained by the respondents are tabulated and published for use in

compliance and enforcement programs of the delegated permitting authority. The monitoring
reports submitted to the permitting authority are used for problem identification, as a check on
source operation and maintenance, and for compliance determinations. EPA is the permitting
authority until the State agency is delegated authority to implement the final rule. Therefore,
information contained in the reports submitted to the Regional Administrator will be entered into
the Air Facility System (AFS), which is operated and maintained by EPA's Office of
Compliance. AFS is EPA’s database for the collection, maintenance, and retrieval of
compliance data for approximately 125,000 industrial and government-owned facilities. EPA
uses the AFS for tracking air pollution compliance and enforcement by local and state regulatory
4

agencies, EPA regional offices and EPA headquarters. EPA and its delegated authorities can
edit, store, retrieve and analyze the data.
(c) Small Entity Flexibility.
The Small Business Administration defines a small entity as a firm having no more than
1,500 employees. EPA’s economic analysis shows that the final amendments will not have an
adverse economic impact on a significant number of small or large entities. Based on our
economic impact analysis, the amendments will result in a nationwide net annualized cost of
about $3.0 million, which includes a credit of about $2.2 million per year from reductions in
product losses. Of the 24 small entities that would incur annualized costs as a result of the final
amendments, annualized costs for each of them are below 0.02 percent of revenues; therefore, no
adverse economic impacts are expected for any small entity. Thus, the costs associated with the
final amendments will not result in any “significant” adverse economic impact for any small or
large entity.
(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
(a) Estimating Respondent Burden.
The annual burden estimates for the final amendments are shown in Table 2. Burden
hour assumptions are based on experience with other standards, information from public
comments on the final amendments, and data collected after proposal. Estimates of cost and
labor hours for heat exchange system leak detection and repair program are based on Texas
Commission on Environmental Quality cost analysis, details of which are included in the docket
(Docket ID Number EPA-HQ-OAR-2003-0146) and in the November 10, 2008, supplemental
proposal.
(b) Estimating Respondent Costs.
The information collection activities for the final amendments are presented in Table 2.
(i) Estimating Labor Costs. Labor rates and associated costs are based on Bureau of
Labor Statistics (BLS) data. Technical, management, and clerical mean hourly rates for private
industry workers were taken from the United States Department of Labor, Bureau of Labor
5

Statistics, “May 2007 National Industry-Specific Occupational Employment and Wage Estimates
for NAICS 324100-Petroleum and Coal Products Manufacturing” available at
http://www.bls.gov/oes/current/naics4_324100.htm. Wages for occupational groups are used as
the basis for the labor rates with a total compensation of $54.42/hour for technical (Petroleum
Engineer, Code 17-2171); $24.60 for installation, maintenance and repair (Code 49-0000);
$20.60 for plant operator (Code 51-8099); $60.88/hour for managerial (Engineering Manager,
Code 11-9041), and $17.91/hour for clerical (Office and Administrative Support, Code 43-0000).
These rates represent salaries plus fringe benefits and do not include the cost of overhead. An
overhead rate of 110 percent is used to account for these costs. The fully-burdened hourly wage
rates used to represent respondent labor costs are: technical at $114.28, installation,
maintenance and repair at $51.66; plant operator at $43.26; management at $127.85, and clerical
at $37.61.
(ii) Estimating Capital and Operations and Maintenance (O&M) Costs. The leak
detection and repair program for heat exchange systems will require the purchase and installation
of an air stripping column apparatus for sample collection and an FID analyzer to determine the
concentration of air stripped compounds although samples may also be collected in canisters for
shipment to analytical laboratories. The air stripping column is portable and may be used for
multiple heat exchange systems.
(iii) Capital/Startup vs. O&M Costs. The capital costs of an air stripping column and
equipment and an FID is $116,870, although approximately 9 percent of refineries are expected
to already have this equipment . The O&M costs are based on one mid-point calibration every
month for 180 heat exchange systems per year. Capital/startup costs for existing and new
sources are estimated at $16,306,000 during the 3-year period of this ICR with O&M costs of
$61,711/yr.
(iv) Annualizing Capital Costs. The annualized cost associated with the final
amendments during the 3-year period of this ICR is $2,321,640 using capital discount rate
of 7 percent over 10 years.
(c) Estimating Agency Burden and Cost.
Because the information collection requirements were developed as an incidental part of
standards development, no costs can be attributed to the development of the information
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collection requirements. Because reporting and recordkeeping requirements on the part of the
respondents are required under the operating permits rules in 40 CFR part 70 or part 71 and the
part 63 NESHAP General Provisions, no operational costs will be incurred by the Federal
Government. Publication and distribution of the information are part of the Compliance Data
System, with the result that no Federal costs can be directly attributed to the ICR. Examination
of records to be maintained by the respondents will occur incidentally as part of the periodic
inspection of sources that is part of EPA's overall compliance and enforcement program, and,
therefore, is not attributable to the ICR. The only costs that the Federal government would incur
are user costs associated with the analysis of the reported information, as presented in Table 3.
The Agency labor rates are from the Office of Personnel Management (OPM) 2008
General Schedule which excludes locality rates of pay. These rates can be obtained from Salary
Table 2008-GS available on the OPM website, http://www.opm.gov/oca/08tables/html/gs_h.asp.
The government employee labor rates are $14.96/hour for clerical (GS-6, Step 3), $27.65 for
technical (GS-12, Step 1), and $37.27/hr for management (GS-13, Step 5). These rates were
increased by 60 percent to include fringe benefits and overhead. The fully-burdened wage rates
used to represent Agency labor costs are: clerical at $23.94; technical at $44.24, and
management at $59.63.
(d)

Estimating the Respondent Universe and Total Burden and Costs.
There are 153 existing petroleum refineries that are subject to the Subpart CC rule. One

new refinery is expected during the next 3 years. Consequently, the average number of
respondents during the 3 year period of this ICR is 51.33 (154/3 = 51.33).
The components of the total annual responses attributable to the final amendments are
notifications of compliance status for heat exchange systems at new and existing refineries and
semiannual compliance reports containing information on heat exchange systems for existing
and new refineries. Therefore, the number of total annual responses is 154.0 (51.33 annual
average respondents x 1 notification of compliance status for heat exchange systems, 51.33
annual average respondents x 2 semiannual compliance reports).

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(e)

Bottom Line Burden Hours and Cost Tables.
(i) Respondent tally. The bottom line respondent burden hours and costs, presented in

Table 2 are calculated by adding person-hours per year down each column for technical,
managerial, and clerical staff, and by adding down the cost column.
The average annual burden for the monitoring, recordkeeping, and reporting
requirements in the final amendments to Subpart CC for new and existing petroleum refineries is
13,647 person hours with an annual average cost of $1,048,783 with annualized capital and
O&M costs of $2,321,640 and $61,711, respectively. The total annual average burden for the
final amendments will be $3,432,134.
(ii) The Agency tally. The total annual Federal Government cost is $10,187 for 236.1
total annual hours. The bottom line Agency burden hours and costs presented in Table 3 are
calculated by adding person-hours per year down each column for technical, managerial, and
clerical staff, and by adding down the cost column.
(iii) Variations in the annual bottom line. This section does not apply since no
significant variation is anticipated.
(f)

Reasons for Change in Burden.
The change in burden estimate reflects the additional requirements of the final

amendments to the NESHAP for petroleum refineries (40 CFR Part 83, Subpart CC).
(g) Burden Statement
The average annual respondent burden for the final amendments to the NESHAP for
petroleum refineries is estimated at 89 hours.
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.

8

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 in 40 CFR part 63 are listed in 40 CFR part 9.
To comment on the Agency’s need for this information the accuracy of the provided
burden estimates, and any suggestions for minimizing respondent burden, including through the
use of automated collection techniques, EPA has established a public docket for this ICR under
Docket ID No. EPA-HQ-OAR-2003-0146, which is available for online viewing at
www.regulations.gov, or in person viewing at the Air and Radiation Docket and Information
Center in the EPA Docket Center (EPA/DC), EPA West, Room 3334, 1301 Constitution Ave.,
NW, Washington, DC. The EPA Docket Center Public Reading Room is open from 8:30 a.m. to
4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the
Reading Room is (202) 566-1744, and the telephone number for the Air Docket is (202) 5661742. An electronic version of the public docket is available at http://www.regulations.gov.
This site can be used to submit or view public comments, access the index listing of the contents
of the public docket, and to access those documents in the public docket that are available
electronically. When in the system, select “search,” then key in the Docket ID Number
identified above. Also, you can send comments to the Office of Information and Regulatory
Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, DC 20503,
Attention Desk Officer for EPA. Please include the EPA Docket ID Number EPA-HQ-OAR2003-0146 and the OMB Control Number 2060-0340 in any correspondence.
PART B
This section is not applicable because statistical methods are not used in data collection
associated with the final amendments.

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TABLE 2. ANNUAL RESPONDENT BURDEN AND COST
Burden item

1. Applications
2. Surveys and Studies
3. Acquisition, Installation,
and Utilization of
c
Technology and Systems
Technical
Management
4. Reporting Requirements
A. Read instructions
B. Required activities
Heat exchange system
d
sampling/analysis
Technical
Plant operator
Triggered monitoring of
e
leak
Technical
Plant operator
Heat exchange system
f
leak repair
C. Create information
D. Gather existing
information
E. Write report
Notification of
compliance status – heat
g
exchange systems
h
Semiannual report
5. Recordkeeping
Requirements
A. Read instructions
B. Plan activities
C. Implement activities

(A)
(B)
(C)
Person-hours
No. of
Person-hours
per
occurrences per per respondent
occurrence
respondent
(C=A*B)

(D)
Respondents
a
per year

(E)
Technical
person-hours
per year
(E=C*D)

(F)
Installation,
maintenance and
repair person-hours
per year (F=C*D)

(G)
Plant
operator
person-hours
per year
(G=C*D)

(F)
Management
person-hours
per year
(E*0.05)

(G)
Clerical
personhours per
year (E*0.1)

(H)
b
Cost , $

N/A
N/A

32
2

1
1

32
2

51.33
51.33

1,643

$187,762
$13,125

2

1

2

51.33

103

3.18
9.53
4

12.0
12.0
2

38
114
8

51.33
51.33
51.33

1,959

1
3
40

2
2
0.15

2
6
6

51.33
51.33
51.33

103

See 4B
1

1

1

51.33

51

2.6

5.1

$6,387

2

2

4

51.33

205

10

20

$25,549

12

12

51.33

616

103
5

10

$12,774

5,870

$223,846
$253,940
$46,928

308

$11,732
$13,324
$15,910

411

308

See 4B
See 4B

See 4A
See 4A
See 4A

i

D. Record data
Technical

1

10

$70,392

Burden item

Operator
E. Time to transmit or
disclose information
j
F. Time to train personnel
G. Time for audits
TOTAL LABOR
BURDEN AND COST
Annualized cost of
k
capital
Operation and
l
maintenance (O&M)
Total Annual Cost
(Labor + Annualized
Capital + O&M)

(A)
(B)
(C)
Person-hours
No. of
Person-hours
per
occurrences per per respondent
occurrence
respondent
(C=A*B)

(D)
Respondents
a
per year

(E)
Technical
person-hours
per year
(E=C*D)

(F)
Installation,
maintenance and
repair person-hours
per year (F=C*D)

(G)
Plant
operator
person-hours
per year
(G=C*D)

(F)
Management
person-hours
per year
(E*0.05)

(G)
Clerical
personhours per
year (E*0.1)

616

(H)
b
Cost , $

1
1

12
2

12
2

51.33
51.33

103

5

10

$26,646
$12,774

20

1

20

51.33

1,027

51

103

$127,743

N/A

13,647 labor hours/yr

$1,048,783

$2,321,640
$61,711
3,432,134

N/A = not applicable.
a
There are 153 existing petroleum refineries that are subject to the Subpart CC rule. One new refinery is expected during the next 3 years. Consequently, the average number of
respondents during the 3 year period of this ICR is 51.33 (154÷3= 51.33).
b
This ICR uses the following labor rates: technical at $114.28; installation, maintenance, and repair at $51.66; plant operator at $43.26; management at $127.85; and clerical at
$37.61. The rates from the United States Department of Labor, Bureau of Labor Statistics, “May 2007 National Industry-Specific Occupational Employment and Wage Estimates
for NAICS 324100-Petroleum and Coal Products Manufacturing” have been increased by 110% to account for the benefit packages available to those employed by private
industry.
c
Labor and costs based on estimates from EPA MACT floor cost analysis. Planning costs for a single heat exchange system based on 32 hours for engineer and 2 labor hours for
management.
d
EPA estimates that 486 of 540 heat exchange systems at 153 existing refineries will need to implement the new heat exchange system monitoring requirements and one new
refinery with an estimated 4 heat exchange systems will become subject to the Subpart CC rule during the 3-year clearance period of this ICR. Therefore, the annual average
number of heat exchange systems per refinery is 3.18 (486 + 4 = 490 heat exchange systems/154 refineries). Labor and costs based on estimates from EPA MACT floor cost
analysis. Labor costs for setup of portable air stripping column and sampling/analysis for one heat exchange system based on 1 labor hour for engineer and 3 labor hours for
operator. Assume 3.18 towers per refinery and event occurs 12 times per year.
e
Labor and costs based on estimates from EPA MACT floor cost analysis. Labor costs for additional sampling and analysis triggered by leak based on 1 hour for engineer and 3
labor hours for an operator for 1 event per year for 2 heat exchangers per refinery.
f
Labor and costs based on estimates from EPA MACT floor cost analysis. Repair costs based on 40 labor hours for 1 repair event per year for 15 percent of heat exchangers.
g
Assume each existing refinery must submit notification of compliance status for heat exchange systems.
h
Labor and costs based on estimates from EPA MACT floor cost analysis. Assume 2 hours per occurrence at 2 times per year.
i
Labor and costs based on estimates from EPA MACT floor cost analysis. Assume 24 labor hours per month per refinery for recordkeeping requirements.
j
Labor and costs based on estimates from EPA MACT floor cost analysis. Assume training of 2 labor hours per year for 10 operators per facility.
k
Based on a total capital investment of $16.3 million and a capital recovery factor of 0.1424 (10 year life at 7 percent annual interest).
l
Operation and maintenance costs based on one mid-point calibration of sampling equipment prior to each sampling event (12 times/yr) at 0.25 hr by one engineer ($114.28/yr)
for annual average of 180 heat exchange systems (540 heat exchange systems/3 = 180).

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Burden Item

TABLE 3. ANNUAL BURDEN AND COST TO THE AGENCY
(D)
(A)
(G)
(F)
(E)
(B)
(C)
Technical Management Clerical- Costb, $
Person
Occurrences Plants
hours per
per
per year a hours/year hours/year hours/year
(D=A*B*C) (E=0.05*D) (F=0.1*D)
occurrence respondent

Report Review:
Notification of compliance status – heat exchange systems
Semiannual compliance report
TOTAL BURDEN AND COST

2
1

1
2

51.33
51.33

102.7
102.7

5.1
5.1

236.1 hours/yr

a

10.3
10.3

$5,094
$5,094

$10,187

There are 153 existing petroleum refineries that are subject to the Subpart CC rule. One new refinery is expected during the next 3 years. Consequently, the average number of
respondents during the 3 year period of this ICR is 51.33 (154÷3= 51.33). No travel is expected.
b
This ICR uses the following average hourly labor rates: 59.63 for managerial (GS-13, Step 5, $37.27 x 1.6), $44.24 (GS-12, Step 1, $27.65 x 1.6) for technical and $23.94 (GS-6,
Step 3, $14.96 x 1.6) for clerical. These rates are from the Office of Personnel Management (OPM) “2008 General Schedule” which excludes locality rates of pay.

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Requirement

ATTACHMENT 1. INFORMATION REQUIREMENTS
Rule citation

Monitoring
Heat exchange system leak detection and repaira
Notifications
Notification of compliance status – heat exchange systems
Records
Heat exchange systems sampling results, leak detection and repaira
Reports
Leak detection and repair results in semiannual compliance reports

General Provisions
citation

§63.654

NA

§63.655(f)(1)(vi)

40 CFR 63.9(h)

§63.655(i)(4)

NA

§63.655(g)(9)

NA

a

The final amendments require a monthly sampling program for heat exchange systems subject to Subpart CC with records of sampling results and reports of
leaks detected, repaired, or for which delays were repaired. Information of heat exchange systems subject to the requirements and those that are exempt must be
included in the notification of compliance status report.

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