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Proposed Rule
Preliminary Regulatory Economic Analysis
Health Standards For Diesel Particulate Concerning:
30 CFR Part 70 and 75 Underground Coal Mines


U.S. Department of Labor
Mine Safety and Health
Administration
Office of Standards,
Regulations, and Variances

March 1998

I. EXECUTIVE SUMMARY

II. INDUSTRY PROFILE

III. BENEFITS

IV. COMPLIANCE COSTS

V. REGULATORY FLEXIBILITY CERTIFICATION

VI. UNFUNDED MANDATES REFORM ACT OF 1995
AND EXECUTIVE ORDER 13045

VII. PAPERWORK REDUCTION ACT OF 1995




I. EXECUTIVE SUMMARY

Introduction

The Mine safety and Health Administration (MSHA) is proposing regulations to decrease miner exposure to diesel particulate matter in underground coal mining operations. Diesel particulate matter is the solid fraction of the exhaust from diesel powered engines. The proposed rule would establish a set of standards for underground coal mines. Although, the Agency considers this rulemaking significant under Executive Order 12866, based upon the preliminary analysis of the compliance costs, MSHA has determined that this proposed rule would not have an annual effect of $100 million or more on the economy.

With respect to underground coal mines, the changes to 30 CFR Part 70 would require the use of high-efficiency particulate filters on certain types of equipment. Specifically, the proposal requires that 18 months after the date of promulgation of this rule, any piece of permissible diesel powered equipment operated in an underground coal mine must have a high efficiency filter in order to trap diesel particulates. A year later, such filters would also have to be installed on any nonpermissible heavy duty diesel powered equipment operated in an underground coal mine. Other proposed provisions for underground coal mines would require miner hazard training; this sector is already required to observe fleet and work practice controls that limit diesel particulate matter.

The proposal would result in small compliance costs for manufacturers of diesel machines due to requirements for equipment approval amendments.

Benefits Summary

The proposed rule would reduce a significant health risk to underground coal miners, reducing the potential for acute illnesses and premature death, and the attendant costs thereof to their employers, their families, and society. The risks being addressed by this proposed rule arise because miners are exposed to significant concentrations of a very small particle, or fine particulate, produced by engines that burn diesel fuel.

MSHA has included a qualitative discussion of the benefits in this analysis. The Agency does not have much experience in quantifying benefits in the case of a proposed health standard (other than its recent proposal on controlling mining noise, where years of compliance data and hearing loss studies provide a much more complete quantitative picture than with diesel particulate matter). MSHA therefore welcomes suggestions for the appropriate approach to use to quantify the benefits likely to be derived from this rulemaking. Please identify scientific studies, models, and/or assumptions suitable for estimating risk at different exposure levels, and data on numbers of miners exposed to different levels of diesel particulate matter.

Underground mines are confined spaces which, despite ventilation requirements, can accumulate significant concentrations of particles and gases -- both those produced by the mine itself (e.g., methane gas and coal dust) and those produced by equipment used in the mine (e.g., diesel particulate). It is widely recognized that respirable particles can create adverse health effects. While exposure of working miners to certain other respirable dusts is controlled (e.g., coal mine dust and silica), there are no current restrictions specifically on occupational exposure to diesel particulate.

In evaluating the health risks miners presently face, and the potential benefits of controlling that risk, it is particularly significant to note that workers at some underground mines are exposed to much higher concentrations of diesel particulate matter than those reported for any other occupation. At these exposure levels, miners are at significant risk of material impairment of their health. A more detailed analysis of diesel particulate exposure and the benefits of controlling exposures is contained in part III of this document (Benefits) and in the preamble of the proposed rule.

Estimated Compliance Costs Summary

MSHA estimates that the per year compliance costs (annualized costs plus annual costs) to underground coal mine operators are approximately $10 million. Manufacturers of diesel equipment would incur about $14,000 per year. With respect to the $10 million for underground coal mine operators, large mine operators would incur $9.9 million and small mine operators (those with less than 20 miners) would incur $120,000.

Regulatory Flexibility Certification and Analysis

Pursuant to the Regulatory Flexibility Act of 1980, MSHA has analyzed the impact of these rules upon small businesses. Further, MSHA has made a preliminary determination with respect to whether or not it can certify that this proposal will not have a significant economic impact on a substantial number of small entities. Under the Small Business Regulatory Enforcement Fairness Act (SBREFA) amendments to the RFA, MSHA must include in the proposal a factual basis for this certification. If the proposed rule does have a significant economic impact on a substantial number of small entities, then the Agency must develop an initial regulatory flexibility analysis.

Based upon MSHA's analysis, the Agency has determined that the proposed rule will not have a significant economic impact on a substantial number of small underground coal mine operators, and has so certified to the Small Business Administration (SBA). The factual basis for this certification is discussed in Part V of this document and will be included in the preamble to the proposal for publication in the Federal Register.

II. INDUSTRY PROFILE

Introduction

The industry profile provides background information describing the structure and economic characteristics of the coal mining industry. This profile provides data on the number of mines, their size, the number of employees in each segment, as well as selected market characteristics.

Although this particular rulemaking does not apply to the surface coal sector, information about surface coal mines are provided here in order to give context for the discussions on underground mining.

Overall Structure of the Mining Industry

MSHA divides the mining industry into two major segments based on commodity, the coal mining industry and the metal and nonmetal (M&NM) mining industry. These major industry segments are further divided based on type of operation (underground mines, surface mines, and independent mills, plants, shops, and yards). MSHA maintains its own data on mine type, size, and employment. MSHA also collects data on the number of contractors and contractor employees by major industry segment.

MSHA categorizes mines as to size based on employment. For this Preliminary Regulatory Economic Analysis, MSHA defines small mines to be those having fewer than 20 employees and large mines to be those having at least 20 employees. Over the past 20 years, for rulemaking purposes, MSHA has consistently used this small mine definition. However, for the purposes of the Small Business Regulatory Enforcement Fairness Act (SBREFA) amendments to the Regulatory Flexibility Act (RFA), MSHA has evaluated the impact of the proposal on mines up to and including those with fewer than 500 employees. As discussed in the various sections of the preamble, MSHA's Preliminary Regulatory Economic Analysis meet the requirements of the Regulatory Flexibility Act particularly as it addresses impacts on small businesses.

Table II-1 presents the number of small and large coal mines and the corresponding number of miners, excluding contractors, by major industry segment and mine type, based upon the definition that small mines employ fewer than 20. Table II-2 provides the same mine operator information presented in Table II-1 except that the information is based upon small mine operators being defined as those that employ 500 or fewer. Table II-3 presents MSHA data on the numbers of independent contractors and the corresponding numbers of employees by major industry segment and the size of the operation based on employment and the definition that small mines are those that employ less than 20. Table II-4 provides the same independent contractor information presented in Table II-3, except that the information is base upon small independent contractors being defined as those that employ 500 or fewer.

Table II-1: Distribution of Operations and Employment (excluding contractors) by Mine Type, Commodity, and Size

MINE TYPE SMALL (<20 EES) LARGE (>20 EES) TOTAL
# Mines # Miners # Mines # Miners # Mines # Miners
COAL
Underground 426 4,371 545 46,206 971 50,577
Surface 776 4,705 370 28,314 1,146 33,019
Shp/Yrd/Mll/Plnt 399 2,538 128 5,010 527 7,548
Office workers -- 657 -- 4,500 -- 5,157
TOTAL COAL MINES 1,601 12,271 1,043 84,030 2,644 96,301

Source: U.S. Department of Labor, Mine Safety and Health Administration, Office of Standards, Regulations, and Variances, based on preliminary 1996 MIS data (quarter 1 - quarter 4, 1996). MSHA estimates assume that office workers are distributed between large and small operations the same as non-office workers.

Table II-2: Distribution of Operations and Employment (excluding contractors) by Mine Type, Commodity, and Size

MINE TYPE SMALL (<500 EES) LARGE (>500 EES) TOTAL
# Mines # Miners # Mines # Miners # Mines # Miners
COAL
Underground 963 45,913 8 4,664 971 50,577
Surface 1,144 31,901 2 1,118 1,146 33,019
Shp/Yrd/Mll/Plnt 527 7,548 0 0 527 7,548
Office workers -- 5,057 -- 100 -- 5,157
TOTAL COAL MINES 2,634 90,419 10 5,882 2,644 96,301

Source: U.S. Department of Labor, Mine Safety and Health Administration, Office of Standards, Regulations, and Variances, based on preliminary 1996 MIS data (quarter 1 - quarter 4, 1996).

Table II-3: Distribution of Contractors (Contr) and Contractor Employees (Miners) by Major Industry Segment and Size of Operation

CONTRACTORS SMALL (<20) LARGE (>20) TOTAL
# Contr # Miners # Contr # Miners # Contr # Miners
COAL
Other than office 3,606 13,954 297 13,792 3,903 27,746
Office workers -- 1,034 -- 1,022 -- 2,056
TOTAL COAL 3,606 14,988 297 14,814 3,903 29,802

Source: U.S. Department of Labor, Mine Safety and Health Administration, Office of Standards, Regulations, and Variances, based on preliminary 1996 MIS data (quarter 1 - quarter 4, 1996). MSHA estimates assume that office workers are distributed between large and small contractors the same as non-office workers.

Table II-4: Distribution of Contractors (Contr) and Contractor Employees (Miners) by Major Industry Segment and Size of Operation

CONTRACTORS SMALL (<500) LARGE (>500) TOTAL
# Contr # Miners # Contr # Miners # Contr # Miners
COAL
Other than office 3,902 27,202 1 544 3,903 27,746
Office workers -- 1,878 -- 178 -- 2,056
TOTAL COAL 3,902 29,080 1 722 3,903 29,802

Source: U.S. Department of Labor, Mine Safety and Health Administration, Office of Standards, Regulations, and Variances, based on preliminary 1996 MIS data (quarter 1 - quarter 4, 1996).

Coal Mines That Use Diesel Powered Equipment

Less than 18 percent of the total 971 underground coal mine operators (or about 173) use diesel powered equipment. Based upon a definition of small mine operators being those that employ 19 or fewer, then of the 173 underground coal mine operators, 15 are small mine operators and 158 are large mine operators. Based upon a definition of small mine operators being those that employ 500 or fewer, then of the 173 underground coal mine operators 167 are small mine operators and 6 are large mine operators. Although surface coal mines are not affected by this rule, all surface coal mines are assumed to use diesel powered equipment.

Structure of the Coal Mining Industry

MSHA separates the U.S. coal mining industry into two major commodity groups, bituminous and anthracite. The bituminous group includes the mining of subbituminous coal and lignite. Bituminous operations represent over 93% of the coal mining operations, employ over 98% of the coal miners, and account for over 99% of the coal production. About 60% of the bituminous operations are small; whereas, about 90% of the anthracite operations are small.

Underground bituminous mines are more mechanized than anthracite mines in that most, if not all, underground anthracite mines still hand-load. Over 70% of the underground bituminous mines use continuous mining and longwall mining methods. The remaining use drills, cutters, and scoops. Although underground coal mines generally use electrical powered equipment, a growing number of underground coal mines use diesel powered equipment.

Surface mining methods include drilling, blasting, and hauling and are similar for all commodity types. Most surface mines use front-end loaders, bulldozers, shovels, or trucks for coal haulage. A few still use rail haulage. Although some coal may be crushed to facilitate cleaning or mixing, coal processing usually involves cleaning, sizing, and grading.

Preliminary data for 1996(1) indicates about 2,650 active coal mines of which 1,600 are small mines (60% of the total) and 1,050 are large mines (40% of the total). These data(2) indicate employment at coal mines to be about 96,300 of which 12,275 (13% of the total) worked at small mines and 84,025 (87% of the total) worked at large mines. MSHA estimates that average employment is 8 miners at small coal mines and 81 miners at large coal mines.

Economic Characteristics of the Coal Mining Industry

The U.S. Department of Energy, Energy Information Administration, reported that the U.S. coal industry produced a record 1.06 billion tons of coal in 1996 with a value of approximately $20 billion. Of the several different types of coal commodities, bituminous and subbituminous coal account for 91% of all coal production (about 940 million tons). The remainder of U.S. coal production is lignite (86 million tons) and anthracite (4 million tons). Although anthracite offers superior burning qualities, it contributes only a small and diminishing share of total coal production. Less than 0.4% of U.S. coal production in 1996 was anthracite.(3)

Mines east of the Mississippi account for about 53% of the current U.S. coal production. For the period 1949 through 1996, coal production east of the Mississippi River fluctuated from a low of 395 million tons in 1954 to 630 million tons in 1990. During this same period, however, coal production west of the Mississippi increased each year from a low of 20 million tons in 1959 to a record 505 million tons in 1996.(4) The growth in western coal is due in part to environmental concerns that led to increased demand for low-sulfur coal, which is concentrated in the West. In addition, surface mining which is more prevalent in the West has increased in productivity due to the technological developments of oversized power shovels and drag-lines.

The 1996 estimate of the average value of coal at the point of production is about $19 per ton(5) for bituminous coal and lignite. MSHA chose to use $19 per ton as the value for all coal production because anthracite contributes such a small amount to total production that the higher value per ton of anthracite does not greatly impact the total value. The total value of coal production in 1996 was approximately $20 billion of which about $0.9 billion was produced by small mines and $19.1 billion was produced by large mines.

Coal is used for several purposes including the production of electricity. The predominant consumer of U.S. coal is the electric utility industry which used 898 million tons of coal in 1996 or 84% of the coal produced. Other coal consumers include coke plants (31 million tons), residential and commercial consumption (6 million tons), and miscellaneous other industrial uses (71 million tons). This last category includes the use of coal products in the manufacturing of other products, such as plastics, dyes, drugs, explosives, solvents, refrigerants, and fertilizers.(6)

The U.S. coal industry enjoys a fairly constant domestic demand due to electric utility usage of coal. MSHA does not expect a substantial change in coal demand by utilities in the near future because of the high conversion costs of changing a fuel source in the electric utility industry. Energy experts predict that coal will continue to be the dominant fuel source of choice for power plants built in the future.

III. BENEFITS

The proposed rule would reduce a significant health risk to underground coal miners, reducing the potential for illnesses and premature death, and the attendant costs thereof to their employers, their families, and society. MSHA estimates that about 13,425 underground coal miners are exposed to diesel particulate matter. MSHA has describe the benefits in general terms, beginning with the nature of the health risks the Agency is seeking to reduce with the proposed regulation. The Agency has, therefore, performed a qualitative analysis of the benefits, and will refine the analysis, as appropriate, as the rulemaking proceeds. The Agency does not have much experience in quantifying benefits in the case of a proposed health standard (other than its recent proposal on controlling mining noise, where years of compliance data and hearing loss studies provide a much more complete quantitative picture than with diesel particulate matter). MSHA therefore welcomes suggestions for the appropriate approach to use to quantify the benefits likely to be derived from this rulemaking. Please identify scientific studies, models, and/or assumptions suitable for estimating risk at different exposure levels, and data on numbers of miners exposed to different levels of diesel particulate matter.

The risks being addressed by this rulemaking arise because some miners are exposed to extremely high concentrations of the very small particles produced by engines that burn diesel fuel. As discussed in part II of the preamble accompanying the proposed rule, diesel powered engines are increasingly being used in underground coal mining operations because they permit the use of mobile equipment and provide a full range of power for both heavy-duty and light-duty operations (i.e., for production equipment and support equipment, respectively), while avoiding the explosive hazards associated with gasoline. But underground mines are confined spaces which, despite ventilation requirements, can accumulate significant concentrations of particles and gases -- both those produced by the mine itself (e.g., methane gas and coal dust liberated by mining operations) and those produced by equipment used in the mine.

It is widely recognized that respirable particles can create adverse health effects. Environmental regulations in effect for some years already restrict the exposure of the general public to particles less than 10 microns in diameter. Moreover, as discussed in part II of the preamble, evidence collected in recent years indicates that much of the health hazard is due to the smallest particles. Since airborne particles less than 2.5 micrometers in diameter have specifically been identified as posing significant health problems, further environmental restrictions have recently been established to limit public exposure to particles of this size range, which includes diesel particulate. This is in addition to a series of regulations issued over the years by the Environmental Protection Agency to directly limit the particulate output of new diesel powered engines.

Similarly, the need to control worker exposure to respirable dusts has long been recognized and implemented. However, while exposure of working miners to certain other respirable dusts is controlled (e.g., coal mine dust and silica), there are no current restrictions specifically on occupational exposure to diesel particulate. Moreover, the rules limiting the particulate output of new diesel powered engines offer little prospect of immediate help since the mining industry has a fleet of engines that largely predate these rules.

In evaluating the health risks miners presently face, and the potential benefits of controlling that risk, it is particularly significant to note that the exposures of the underground mine population constitute a special class. Underground miners appear to be the population in the U.S. currently that is by far the most exposed to diesel particulate. The concentrations of diesel particulates to which some underground miners are currently exposed, are significantly higher than the concentrations reported for other occupational groups. Based upon MSHA field studies discussed in part III of the preamble, and as shown below in Figure III-1, median diesel particulate concentrations observed for underground miners in some mines are up to 200 times as high as average environmental exposures in the most heavily polluted urban areas and up to 10 times as high as median exposures estimated for the most heavily exposed workers in other occupational groups.


Figure III-1. -- Range of average dpm exposures observed at various mines for underground and surface miners compared to range of average exposures reported for other occupations and for urban ambient air. Averages are represented by median observed within mines for mine workers, by median as estimated with geometric mean reported for other occupations, and, for ambient air in urban environments, by the monthly mean estimated for different months and locations Southern California. The range estimated for urban ambient aire is roughly 1 to 10 µg/m3.

As described in detail in MSHA's risk analysis (part III of the preamble), there are three general bodies of scientific information indicating that miners exposure at such levels are at significant excess risk of experiencing three kinds of material impairment to their health. First, even short term exposures can result in sensory irritations and respiratory symptoms. These include eye, nose, and throat irritations; reduced lung function; headaches, nausea, and/or vomiting; and chest tightness and wheeze. Besides being potentially debilitating, such effects can distract miners from their responsibilities in ways that could pose safety hazards for everyone in the mine. Second, there is evidence linking short or long term exposures to an increased risk of death from cardiovascular, cardiopulmonary, or respiratory causes. For each increase of 75 g/m3 in the concentration of fine particulate matter over an 8 hour shift (roughly corresponding to an increase of 25 g/m3 in 24 hour ambient concentration), the acute risk of death is estimated to increase by about 2.5 to 5 percent. Third, chronic occupational exposure has been linked to an estimated 30 to 40 percent increase in the risk of lung cancer.

Despite these quantitative indications, quantification of the benefits is difficult. For example, although increased risk of lung cancer has been shown to be associated with diesel particulate matter exposure among exposed workers, a definitive dose-response relationship upon which to base quantification of benefits has not been demonstrated. The Agency, nevertheless intends, to the extent it can, to develop an appropriate analysis quantifying benefits in connection with the final rule.

NIOSH has concluded that miners are at an elevated risk of contracting lung cancer as a result of the very high exposures of this population to diesel particulate. NIOSH has also reaffirmed their 1988 recommendation that whole diesel exhaust be regarded as a "potential occupational carcinogen", and that reductions in workplace exposure be implemented to reduce cancer risks. In addition, other organizations have already recognized the potential harmful health effects of diesel particulate. In 1989, the International Agency for Research on Cancer declared that "diesel engine exhaust is probably carcinogenic to humans..." In 1995, the American Conference of Governmental Industrial Hygienists (ACGIH) added diesel particulate matter to its "Notice of Intended Changes" for 1995-96, recommending a threshold limit value (TLVR) for a conventional 8 hour work day of 150 micrograms per cubic meter of air (150dpm g/m3). Germany already regulates exposure to diesel particulate, and Canada is looking closely at the potential problem.

MSHA believes that evidence of adverse health effects arising from such exposure is strong, and that reducing miners' exposure to diesel particulate matter will reduce the number of sensory irritations and respiratory symptoms, reduce the number of deaths due to cardiovascular, cardiopulmonary, or respiratory causes, and reduce the number of lung cancers.

The nature of the risks suggests the nature of the savings to be derived from controlling exposure, even though they cannot be quantified. Acute reactions result in lost production time for the operator and lost pay (and perhaps medical expenses) for the worker. Hospital care for acute breathing crises or cancer treatment can be expensive, result in lost income for the worker, lost income for family members who need to provide care and lost productivity for their employers, and may well involve government payments (e.g., Social Security disability and Medicare). Serious illness and death lead to long term income losses for the families involved, with the potential for costs from both employers (e.g., workers' compensation payouts, pension payouts) and society as a whole (e.g., government assisted aid programs).

IV. COMPLIANCE COSTS

Introduction

This chapter contains MSHA's estimates of the compliance costs associated with the proposed rule. The baseline for these estimated costs is current industry practices. The proposed rule would impose compliance costs upon underground coal mine operators. A small amount of costs would be incurred by diesel equipment manufacturers. Each provision that has compliance costs associated with it is discussed in this part IV.

Methodology

MSHA estimated: (1) initial costs; (2) annualized costs (which are initial costs amortized over a specific number of years); and (3) annual costs.

Initial costs consist of: capital expenditures that are not purchased annually; and one time costs. Capital expenditures are defined as equipment purchase costs. One time costs are costs, other than equipment costs, that are usually incurred once and do not reoccur annually. An example of a one time cost would be the costs to develop a written procedural program.

Initial costs are amortized over a specific number of years to arrive at what is called annualized costs. All initial costs are annualized in order to recognize that business operations finance the purchase of equipment over a certain period of time, or that a plan or program developed in one year will be used for several years. For purposes of this rule, in addition to annualizing initial costs a net present value factor was applied to those initial costs that are associated with provisions where mine operators do not have to make cost expenditures to comply with the rule until some years after the effective date of the rule.

Converting an initial cost to an annualized cost changes that cost from one that does not reoccur annually to one that does reoccur annually. When initial cost are converted to annualized costs, the annualized costs are like annual costs and thus can be added to annual costs in order to get the cost per year of a rule that accounts for all of the costs in that rule.

Annual costs are costs that normally reoccur annually. Examples of annual costs are maintenance costs, recordkeeping costs, and labor costs.

MSHA used an hourly compensation rate of $26 for a coal miner and $42 for a coal supervisor(7). In order to convert initial costs into annualized costs, a 7 percent discount rate was used.

In this regulatory economic analysis, MSHA has included its assumptions, both as to the amount of equipment used, and controls necessary to meet the requirements in the proposed rule. However, the Agency specifically requests comments on any assumptions included in this analysis.

Summary of Estimated Compliance Costs

The per year compliance costs (annualized costs plus annual costs) to underground coal mine operators are approximately $10 million. Manufacturers of diesel equipment would incur about $14,000. With respect to the $10 million for underground coal mine operators, large mine operators would incur approximately $9.9 million and small mine operators would incur approximately $120,000.

The most costly provision for underground coal mine operators (proposed § 72.500) involves requirements for diesel particulate filters. Paragraph (a) requires that one and a half years after the rule becomes effective any piece of permissible diesel powered equipment operated in an underground coal mine to be equipped with a filtration device that is capable of removing an average of 95 percent or greater by mass of diesel particulate matter. Paragraph (b) requires that same type of filtration device for nonpermissible heavy duty diesel powered equipment two and a half years after the rule becomes effective. Manufacturers of diesel equipment would incur minimal compliance costs in order to amend existing diesel approval applications and to obtain an engine approval.

Table IV-1 provides a breakdown of the compliance costs of the proposed rule between underground coal mine operators and manufacturers. Tables IV-2, and IV-3, provide a breakdown of the proposed rule's costs allocable to underground coal mine operators and manufacturers, respectively.

TABLE IV-1
COMPLIANCE COSTS FOR UNDERGROUND MINES AND MANUFACTURERS
(DOLLARS X 1,000)

Large Mines Small Mines Total Mines and
Manufacturers
Detail (A)
Total
[Col.B+C]
(B)
Annual-
ized
(C)
Annual
(D)
Total
[Col.E+F]
(E)
Annual-
ized
(F)
Annual
(G)
Total
[Col.H+I]
(H)
Annual-
ized
(I)
Annual
Ug. Coal $9,873 $1,802 $8,071 $120 $36 $84 $9,993 $1,838 $8,155
Manuf. $14 $14 $0
Total $10,007 $1,852 $8,155

TABLE IV-2
COMPLIANCE COSTS FOR UNDERGROUND COAL MINES
(DOLLARS X 1,000)

Large mines Small Mines Total Mines
Detail (A)
Total
[Col.B+C]
(B)
Annual-
ized
(C)
Annual
(D)
Total
[Col.E+F]
(E)
Annual-
ized
(F)
Annual
(G)
Total
[Col.H+I]
(H)
Annual-
ized
(I)
Annual
75.1915 $9 $9 $0 $1 $1 $0 $10 $10 $0
72.500a $4,910 $457 $4,453 $95 $22 $73 $5,005 $479 $4,526
72.500b $4,768 $1,335 $3,433 $22 $12 $10 $4,790 $1,347 $3,443
72.510 $185 $0 $185 $1 $0 $1 $186 $0 $186
75.371qq
&75.370
$1 $1 $0 $1 $1 $0 $2 $2 $0
Total $9,873 $1,802 $8,071 $120 $36 $84 $9,993 $1,838 $8,155

TABLE IV-3
COMPLIANCE COSTS FOR MANUFACTURERS
(DOLLARS X 1,000)

MANUFACTURERS
Detail (A)
Total
[Col.B+C]
(B)
Annual-
ized
(C)

Annual
Part 36 $14 $14 $0
Total $14 $14 $0


Compliance Costs for Underground Coal Mines

Proposed § 72.500

Diesel particulate filtration systems

The proposed rule for underground coal mines requires the use of filtration technology capable of achieving a 95 percent reduction in diesel particulate matter mass on certain categories of diesel powered equipment. This type of filter technology involves an initial expense, and annual costs for the regular replacement of the filter medium (paper). Some equipment will have to be modified to accept these filters, resulting in additional initial costs. Alternative technologies are available for some diesel powered equipment but have not been tested to meet the proposed requirements, therefore, compliance costs assumed here are for the installation of paper filter technology.

Proposed § 72.500(a)

Permissible equipment

Paragraph (a) requires that eighteen months after the effective date of this rule, any piece of permissible diesel powered equipment operated in an underground coal mine must be equipped with a filtration device capable of removing an average of 95 percent or greater by mass of diesel particulate matter. MSHA's analysis of diesel particulate matter emissions in underground coal mines indicates that permissible equipment used for face haulage that contributes most to high diesel particulate matter levels. Installing high efficiency filters on such equipment is an effective way to lower diesel particulate matter concentrations in underground coal mines.

MSHA's underground coal diesel inventory shows that for underground coal mines using diesel powered equipment, there are 542 permissible diesel powered machines in large mines and 25 permissible machines in small mines that will need a filtration device. Concerning large mines, MSHA estimates that 10 percent of the permissible machines already have aftertreatment devices on permissible equipment. Thus, 488 (542 - 54) permissible machines in large mines would need aftertreatment devices. About 90 percent of the 488 permissible machines, or 439 machines, in large mines would need an aftertreatment or filtration device that is estimated to cost about $6,000 per machine. About 10 percent of the 488 permissible machines, or 49 machines, would take more work in fitting an aftertreatment device which is estimated to cost about $12,000 per machine. Costs for aftertreatment devices were established based upon MSHA's current knowledge of what manufacturers of such equipment have charged.

With respect to small mines, about 95 percent of the 25 permissible diesel powered machines, or 24 machines, would need an aftertreatment or filtration device that is estimated to cost about $6,000 per machine. About 5 percent of the 25 permissible machines, or 1 piece machines, would take more work in fitting an aftertreatment device which is estimated to cost about $12,000 per machine.

Thus, the initial compliance costs to fit diesel powered equipment with filtration devices would cost about $3,378,000, of which large mines would incur $3,222,000 [(439 perm. pcs. x $6,000) + (49 perm. pcs. x $12,000)], and small mines would incur $156,000 [(24 perm. pcs. x $6,000) + (1 perm. pc. x $12,000)]. The filtration devices are expected to last the life of the equipment and are thus annualized over a 10 year period to be about $479,700, of which large mines would incur $457,525 [$3,222,000 x 0.142] and small mines would incur $22,175 [$156,000 x 0.142].

In addition to the above costs, a disposable paper filter is used and must be changed regularly. The duty cycle of the machine determines the frequency that a disposable paper filter would need to be replaced. MSHA experience shows that filters need changing between 1 to 3 shifts (for an average of 2 shifts). On average, large underground coal mine operators are estimated to operate 2 shifts per day for 250 workdays per year. On average, small underground coal mine operators are estimated to operate 1 shift per day for 160 workdays per year. Under these assumptions, large mines are estimated to change filters on machines once per working day, and small mines are estimated to change filters on machines once every two working days. Each disposable filter is estimated to cost about $30. It is estimated to take a miner, earning $26 per hour, no longer than 15 minutes (0.25 hours) to change the disposable filter. Thus, the annual compliance costs relate to changing disposable filters on permissible diesel powered machines would be about $4,526,000, of which large mines would incur $4,453,000 [((0.25 hrs. x $26 wage) + $30 filter) x 1 change per day x 250 workdays x 488 perm. pcs.]; and small mines would incur $73,000 [((0.25 hrs. x $26 wage) + $30 filter) x 1 change every two days x (160 workdays/2) x 25 perm. pcs.].

Proposed § 72.500(b)

Nonpermissible equipment

Two and a half years after the effective date of this rule, any nonpermissible heavy duty diesel powered machine (as defined by existing § 75.1908(a)) operated in an underground coal mine would have to be equipped with a filtration device capable of removing an average of 95 percent or greater by mass of diesel particulate matter. In addition to permissible diesel powered equipment, nonpermissible heavy duty diesel powered equipment can also generate significant diesel particulate emissions. Installing high efficiency filters on such equipment is an effective way to lower diesel particulate matter concentrations in underground coal mines.

In order to account for the fact that costs related to this provision do not have to be incurred until two and a half years after the effective date of the rule, they were multiplied by a net present value factor of 0.816.

MSHA has estimated that there are about 465 nonpermissible heavy duty diesel powered machines in underground coal mines. Of the 465, about 461 are estimated to be in large mines and 4 are estimated to be in small mines. The cost to install a filtration device on a piece of nonpermissible equipment is more involved than installing the device on a permissible piece of equipment. In addition to the filtration device, adjustments have to be made to the cooling system, and a heat exchanger or scrubber has to be installed. Thus, the costs to retrofit a nonpermissible heavy duty diesel powered machine with a filter would be about $25,000. This $25,000 is composed of $6,000 for installation of the filter, canister and related plumbing, $10,000 for the heat exchanger or scrubber, $5,000 for upgrading the cooling system, and $4,000 for additional installation related to the heat exchanger and cooling system. These costs were established based upon MSHA's experience and manufacturers data. The initial compliance costs to retrofit nonpermissible heavy duty diesel powered machines with filters would be about $9,486,000, of which large mines would incur $9,404,400 [461 nonperm. pcs. x $25,000 x 0.816] and small mines would incur $81,600 [4 nonperm. pcs. x $25,000 x 0.816]. The retrofit equipment will last the life of the machine and thus the initial compliance costs are annualized over a ten year period to be about $1,347,025, of which large mines would incur $1,335,425 [$9,404,400 x 0.142] and small mines would incur $11,600 [$81,600 x 0.142].

In addition to the above costs, a disposable paper filter is used and must be changed regularly. The duty cycle of the machine in large part determines when the disposable paper filter would need changing. The filter would be the same type as that put onto a piece of permissible equipment, thus as before, MSHA experience shows that filters need changing between 1 to 3 shifts (for an average of 2 shifts). On average, large underground coal mine operators are estimated to operate 2 shifts per day for 250 workdays per year. On average, small underground coal mine operators are estimated to operate 1 shift per day for 160 workdays per year. Using these assumptions, large mines are estimated to change filters on machines once per working day, and small mines are estimated to change filters on machines once every two working days. Each disposable filter is estimated to cost about $30. It is estimated to take a miner, earning $26 per hour, no longer than 15 minutes (0.25 hours) to change the disposable filter. Thus, the annual compliance cost related to changing disposable filters on nonpermissible heavy duty diesel powered machines would be about $3,003,450, of which large mines would incur $2,995,125 [((0.25 hrs. x $26 wage) + $30 filter) x 1 change per day x 250 workdays x 461 nonperm. pcs. x 0.712]; and small mines would incur $8,325 [((0.25 hrs. x $26 wage) + $30 filter) x 1 change every two days x (160 workdays/2) x 4 nonperm. pcs. x 0.712].

Proposed § 72.500(c)

Filter maintenance

This provision requires that filters be maintained in accordance with manufacturers specifications. The necessary maintenance would require changing the paper filter during the required time period. MSHA has included the cost of changing filters above in §§ 72.500(a) and (b).

Existing § 75.1915

Existing § 75.1915(a)

Maintenance training

Since proposed § 72.500(a) and (b) are requiring that all permissible and heavy duty nonpermissible diesel powered equipment in underground coal mines have a filtration device, in accordance with existing § 75.1915(a), a qualified person in an underground coal mine will need to get additional training related to filtration devices.

It is assumed that training would be contracted out and provided by attending either: a manufacturer's seminar on the purchase of new equipment; or classroom type training in a vocational or college type setting. It is estimated that, in general, these types of training would cost about $75 per hour for each person trained. In underground coal mines it is estimated that a large mine will have between 2 to 4 (for an average of 3) qualified persons and a small mine will have 1 qualified person.

MSHA estimates that there are 141 large and 13 small underground coal mine operations that have permissible and/or heavy duty nonpermissible diesel powered equipment, and thus would need to provide training. MSHA estimates that a qualified person, earning $28 per hour, in an underground coal mine operation would need between 2 to 4 hours (for an average of 3 hours) of training concerning filtration devices. The initial compliance costs related to training would be about $134,750, of which large mines would incur $130,725 [((3 hrs. x $28 wage x 3 qualified persons) + (3 hrs. x $75 rate x 3 qualified persons)) x 141 mines], and small mines would incur $4,025 [((3 hrs. x $28 wage x 1 qualified person) + (3 hrs. x $75 rate x 1 qualified person)) x 13 mines]. The initial compliance costs were annualized at a rate of 7 percent to be about $9,450, of which large mines would incur $9,150 [$130,725 x 0.07] and small mines would incur $300 [$4,025 x 0.07].

Existing § 75.1915(c)

Training records

Paragraph (c) requires evidence of those persons trained. This evidence can be the mine operator maintaining a list of those trained, along with any necessary information. This information could be a certificate from a course which verifies that the person received training. MSHA estimates that it would take no more than 5 minutes (0.0833 hours) in a large and small mine to make such a record.

There are 141 large and 13 small underground coal mine operations that would need to maintain a record of those trained. MSHA estimates that a coal mine supervisor, earning $42 per hour, will make the record. The initial compliance costs related to the training record would be about $550, of which large mines would incur $500 [(0.0833 hrs. x $42 wage) x 1 record x 141 mines], and small mines would incur no more than $50 [(0.0833 hrs. x $42 wage) 1 record x 13 mines]. The initial compliance costs were annualized at a rate of 7 percent to be about $75, of which large mines would incur no more than $50 [$500 x 0.07] and small mines would incur no more than $25 [$50 x 0.07].

Proposed § 72.510

Miner health training

Perform training

Section 72.510(a) provides that underground coal miners, on a mine property who can reasonably be expected to be exposed to diesel emissions on that property must be annually trained in: (1) the health risks associated with exposure to diesel particulate; (2) the methods used in the mine to control diesel particulate concentrations; (3) identification of the personnel responsible for maintaining those controls and; (4) actions miners must take to ensure the controls operate as intended.

MSHA expects to develop an information training card summarizing the areas mentioned above, which will be handed out to all mines. However, in addition to the information training card, MSHA estimates that mine operators will need to provide additional training. MSHA estimates that in order to provide the training required by this provision each large mine operator will need to give 3 training sessions lasting 30 minutes (0.5 hours), and each small mine operator will need to give 1 training session lasting 15 minutes (0.25 hours).

There are 158 large and 15 small underground coal mine operators that are affected by this provision. On average, MSHA estimates that each large mine employs 84 miners and each small mine employs 10 miners. If there are 3 training sessions in each large mine then 28 miners are estimated to be at each session, and 10 miners are estimated to be at the one training session for each small mine. A coal mine supervisor, earning $42 per hour will provide the training to coal miners earning $26 per hour.

The annual compliance costs to provide § 72.510(a) training to affected underground coal miners would be about $183,650, of which large mines would incur $182,500 [((3 sessions x 1 supervisor x $42 wage x 0.5 hrs.) + (3 sessions x 28 miners x $26 wage x 0.5 hrs.)) x 158 mines]; and small mines would incur $1,150 [((1 session x 1 supervisor x $42 wage x 0.25 hrs.) + (1 session x 10 miners x $26 wage x 0.25 hrs.)) x 15 mines].

Training records

Section 72.510(b) requires underground coal mine operators to keep a record of the annual training. Such records could be a signature list stating that training was given. However, the rule is flexible and allows for other ways to maintain training records, just as long as such records verify that miners had received training. For costing purposes MSHA assumes that mine operators would maintain a signature list of those trained. MSHA estimates that for each miner to sign a signature list stating that such training had been given will take no more than 30 seconds (0.0083 hours).

There are 158 large and 15 small underground coal mine operators affected by this standard. Approximately 28 miners in each of the 3 training sessions given in each large mine, and 10 miners in the 1 session given in each small mine, will have to sign a signature list proving that they have received training. An underground coal miner's wage is estimated at $26 per hour. Thus, the annual compliance costs associated with training records are about $2,925, of which large mines would incur $2,875 [(3 sessions x 28 miners x $26 wage x 0.0083 hrs.) x 158 mines], and small mines would incur less than $50 [(1 session x 10 miners x $26 wage x 0.0083 hrs.) x 15 mines].

Proposed § 75.371(qq)

Revising mine ventilation plans

Under § 75.371(qq) all underground coal mine operators that use diesel powered equipment are required to revise their mine ventilation plans to include a list of diesel powered units maintained by the mine operator together with information about any unit's emission control or filtration device. This section will affect 173 underground coal mine operators, of which 158 are large mines and 15 are small mines. MSHA estimates that it will take a coal mine supervisor, earning $42 per hour, not more than 1 hour in a large mine, and 30 minutes (0.5 hours) in a small mine, to revise the existing mine ventilation plan. Thus, the initial compliance costs for underground coal mine operators, that use diesel powered equipment, to revise mine ventilation plans would be about $6,975, of which large mines would incur $6,650 [(1 hr. x $42 wage) x 158 mines] and small mines would incur $325 [(0.5 hrs. x $42 wage) x 15 mines]. The initial compliance costs of $6,975 were annualized at a rate of 7 percent to be about $500, of which large mines would incur $475 [$6,650 x 0.07] and small mines would incur $25 [$325 x 0.07].

Existing § 75.370

Revisions to mine ventilation plans

Under proposed § 75.371(qq) underground coal mine operators are required to maintain a list of diesel powered units together with information about any unit's emission control or filtration system. This would require underground coal mine operators to incur compliance costs to revise their existing mine ventilation plans. Revisions to an underground coal mine ventilation plan are governed by existing § 75.370.

Existing § 75.370(a) requires that underground coal mine operators: notify the representative of the miners of any proposed ventilation plan revisions and provide a copy upon request; make a copy of any proposed ventilation plan revisions available for inspection by the representative of the miners; post a copy of the proposed ventilation plan revisions on the mine bulletin board; and submit a copy to MSHA. MSHA estimates that it would take a secretary, earning $16 per hour, 20 minutes (0.3333 hours) to fulfill the requirements of § 75.370(a). Copying costs are estimated at $0.15 per page, and the revisions are estimated to be no longer than 5 pages. There are 158 large and 15 small underground coal mine operators that are affected. Thus, the initial compliance costs associated with § 75.370(a) would be about $1,450, of which large mines would incur $1,325 [((0.3333 hrs. x $16 wage) + (($0.15 x 5 pgs.) x 4 copies)) x 158 mines] and small mines would incur $125 [((0.3333 hrs. x $16 wage) + (($0.15 x 5 pgs.) x 4 copies)) x 15 mines]. The initial compliance costs were annualized at a rate of 7 percent to be about $125, of which large mines would incur $100 [$1,325 x 0.07] and small mines would incur not more than $25 [$125 x 0.07].

Existing § 75.370(e) requires that prior to implementing a ventilation plan revision, the mine operator must instruct all persons affected by the revision in its provisions. The costs for this are estimated under § 72.510.

Existing § 75.370(f) requires approved mine ventilation plan revisions to be provided upon request to representative of miners, made available for inspection by the representative of the miners, and posted on the mine bulletin board. Fulfilling the requirements of § 75.370(f) is estimated to take a secretary, earning $16 per hour, 15 minutes (0.25 hours). Copying costs are estimated at $0.15 per page. Thus, the initial compliance costs associated with § 75.370(f), for 158 large and 15 small underground coal mines, would be about $1,100, of which large mines would incur $1,000 [((0.25 hrs. x $16 wage) + (($0.15 x 5 pgs.) x 3 copies)) x 158 mines] and small mines would incur $100 [((0.25 hrs. x $16 wage) + (($0.15 x 5 pgs.) x 3 copies)) x 15 mines]. The initial compliance costs were annualized at a rate of 7 percent to be about $100, of which large mines would incur $75 [$1,000 x 0.07] and small mines would incur not more than $25 [$100 x 0.07].

Compliance Costs for Diesel Equipment Manufacturers

Existing Part 36

Permissible machine approvals

As a result of proposed § 72.500(a) which requires all permissible equipment to have filtration devices, manufacturers would need to amend existing permissible machine approvals. MSHA estimates that manufacturers would have to spend about 20 hours per application, at a cost of about $75 per hour, to prepare and submit to MSHA approval amendments to 16 existing diesel power packages for permissible machines. In addition, it would cost manufacturers approximately $2,000 per application to have MSHA evaluate the amended application. The initial compliance costs are estimated to be about $56,000 [(16 existing approvals x 20 hours x $75 per hr.) + (16 existing approvals x $2,000 evaluation)]. This is only performed once per amended application, and thus the initial compliance costs were annualized at a rate of 7 percent to be about $3,925 [$56,000 x 0.07].

Furthermore, apart from the 16 applications noted above, there are 5 more existing diesel power packages installed on permissible machines which will require some substantial redesign and retesting of the exhaust gas conditioning system to allow the use of an exhaust filter. MSHA estimates that manufacturers would have to spend about 40 hours per application, at a cost of about $75 per hour, to prepare and submit to MSHA approval amendments for the 5 existing diesel power packages installed on permissible machines. In addition, it would cost manufacturers approximately $25,000 per application to have MSHA evaluate and perform tests. The initial compliance costs are estimated to be about $140,000 [(5 existing approvals x 40 hours x $75 per hr.) + (5 existing approvals x $25,000 evaluation and test)]. This is performed once and thus the initial compliance costs were annualized at a rate of 7 percent to be about $9,800 [$140,000 x 0.07].

V. REGULATORY FLEXIBILITY CERTIFICATION

Introduction

Pursuant to the Regulatory Flexibility Act of 1980, MSHA has analyzed the impact of this rule upon small businesses. Further, MSHA has made a preliminary determination with respect to whether or not it can certify that this proposal will not have a significant economic impact on a substantial number of small entities. Under the Small Business Regulatory Enforcement Fairness Act (SBREFA) amendments to the RFA, MSHA must include in the proposal a factual basis for this certification. If the proposed rule does have a significant economic impact on a substantial number of small entities, then the Agency must develop an initial regulatory flexibility analysis.

Based upon MSHA's analysis, the Agency has determined that the proposed rule will not have a significant economic impact on a substantial number of small underground coal mine operators, and has so certified to the Small Business Administration (SBA). The factual basis for this certification will be included in the preamble to the proposed rule for publication in the Federal Register. MSHA specifically solicits comments on the cost data and assumptions concerning the regulatory flexibility certification statement for underground coal mine operators. To facilitate public participation in the rulemaking process, MSHA will mail a copy of the proposed rule, including the preamble, and regulatory flexibility certification statement, to every underground coal mine operator.

Definition of Small Mine

Under the RFA, in analyzing the impact of a proposed rule on small entities, MSHA must use the SBA definition for a small entity or, after consultation with the SBA Office of Advocacy, establish an alternative definition for the mining industry by publishing that definition in the Federal Register for notice and comment. MSHA has not taken such an action, and hence is required to use the SBA definition.

The SBA defines a small entity as an establishment with 500 employees or less (13 CFR 121.201). MSHA's use of the 500 or less employees includes all employees (miners and office workers). Almost all mines fall into this category and hence can be viewed as sharing the special regulatory concerns which the RFA was designed to address. That is why MSHA has, for example, committed to providing to all underground coal mine operators a copy of a compliance guide.

The Agency is concerned, however, that looking only at the impacts of the proposed rule on all the mines does not provide the Agency with a very complete picture on which to make decisions. Traditionally, the Agency has also looked at the impacts of its proposed rules on what the mining community refers to as "small mines" -- those with fewer than 20 miners. The way these small mines perform mining operations is generally recognized as being different from the way other mines operate.

This analysis complies with the legal requirements of the RFA for an analysis of the impacts on "small entities" while continuing MSHA's traditional look at "small mines". In concluding that it can certify that the proposed rule has no significant impact on a substantial number of small entities, the Agency determined that this is the case both for underground coal mines with 500 or fewer miners and for underground coal mines with 20 or fewer miners.

Underground Coal Mines: Factual Basis for Certification

General approach: The Agency's analysis of impacts on "small entities" and "small mines" begins with a "screening" analysis. The screening compares the estimated compliance costs of the proposed rule for small mine operators in the affected sector to the estimated revenues for that sector. When estimated compliance costs are less than 1 percent of estimated revenues (at both of the size categories considered) the Agency believes it is generally appropriate to conclude that there is no significant impact on a substantial number of small entities. When estimated compliance costs approach or exceed 1 percent of revenue, it tends to indicate that further analysis may be warranted. The Agency welcomes comment on its approach in this regard.

Derivation of costs and revenues: In the case of this proposed rule, because the compliance costs must be absorbed by underground coal mines only, the agency decided to focus its attention exclusively on the relationship between costs and revenues for underground coal mines, rather than looking only at the coal sector as a whole.

The compliance costs for this analysis are presented earlier along with an explanation of how they were derived. In deriving compliance costs there where areas where different assumptions had to be made for small mines in order to account for the fact that the mining operations of small mines are not the same as those of large mines. For example, assumptions used to derive compliance costs concerning: the number of production shifts per mine, and the number of days the mine operates on an annual basis, were different depending on whether the mine was classified as either a large or small mining operation. In determining revenues for underground coal mines, MSHA multiplied underground coal production data (in tons) for underground coal mines in specific size categories (reported to MSHA quarterly) by $19 per ton (the average rounded price per ton)(8). The Agency welcomes comment on alternative data sources that can help it more accurately estimate revenues for the final rule or other rules confined to this sector.

Results of screening analysis: With respect to underground coal mine operators, as can be seen in Table V-1, when the definition of a small mine operator is fewer than 20 employees, then estimated average per year costs of the proposed rule are $8,000 per small mine operator and estimated costs as a percentage of revenues are 0.04 percent for small mine operators. When the definition of a small mine operator is fewer than 500 employees, then estimated average per year cost of the proposed rule are $57,650 per small mine operator and estimated costs as a percentage of revenues are 0.13 percent for small mine operators.

In both cases, the impact of the proposed costs is less than 1 percent of revenues, well below the level suggesting that the proposed rule might have a significant impact on a substantial number of small entities. Accordingly, MSHA has certified that there is no such impact for small entities that mine underground coal.

TABLE V-1: UNDERGROUND COAL MINES
Estimated
Costs
(thous.)
Estimated
Revenue
(million)
Estimated
Cost per
Mine
Costs as
% of
Revenue
Small <20 $120 $287 $8,000 0.04%
Small <500 $9,624 $7,359 $57,650 0.13%

As required under the law, MSHA is complying with its obligation to consult with the Chief Counsel for Advocacy on this proposed rule, and on the Agency's certification of no significant impact in underground coal mining sector. Consistent with agency practice, notes of any meetings with the Chief Counsel's office on this rule, or any written communications, will be placed in the rulemaking record. The Agency will continue to consult with the Chief Counsel's office as the rulemaking process proceeds.

VI. UNFUNDED MANDATES REFORM ACT OF 1995
AND EXECUTIVE ORDER 13045

Introduction

MSHA has determined that, for purposes of § 202 of the Unfunded Mandates Reform Act of 1995, this proposed rule does not include any Federal mandate that may result in increased expenditures by State, local, or tribal governments in the aggregate of more than $100 million, or increased expenditures by the private sector of more than $100 million. Moreover, the Agency has determined that for purposes of § 203 of that Act, this proposed rule does not significantly or uniquely affect small governments.

Background

The Unfunded Mandates Reform Act was enacted in 1995. While much of the Act is designed to assist the Congress in determining whether its actions will impose costly new mandates on State, local, and tribal governments, the Act also includes requirements to assist Federal agencies to make this same determination with respect to regulatory actions.

Analysis

Based on the analysis in the Agency's Preliminary Regulatory Economic Analysis the compliance cost of this proposed rule for the underground coal mining industry is approximately $10 million per year. Accordingly, there is no need for further analysis under § 202 of the Unfunded Mandates Reform Act.

MSHA has concluded that small governmental entities are not significantly or uniquely impacted by the proposed regulation. The proposed rule affects only underground coal mines, and MSHA is not aware of any state, local or tribal government ownership interest in these mines. MSHA seeks comments of any state, local, and tribal government which believes that they may be affected by this rulemaking.

Executive Order 13045

Protection of Children From Environmental Health Risks and Safety Risks

In accordance with Executive Order 13045, MSHA has evaluated the environmental health or safety effects of the proposed rule on children. The Agency has determined that the proposal will have no effects on children.

VII. PAPERWORK REDUCTION ACT OF 1995

Introduction

The proposed rule contains information collection requirements for: underground coal mine operators in §§ 75.1915, 75,370, 75.371 and 72.510; and for diesel manufacturers in Part 36. Annual burden hours are 633 for underground coal mines. There are 520 burden hours related to manufacturers of diesel equipment, which will not reoccur annually. Tables VII-1 and VII-2 provides the burden hours for mine operators and manufacturers by section. Following the tables are the details of how the burden hours and compliance costs related to those burden hours were determined. Although the paperwork compliance costs are included in the total compliance costs of the rule estimated in part IV of this document, the paperwork compliance costs are again presented in this section in order to show their relationship to burden hours.

MSHA invites comments on: (1) whether the proposed collection of information is necessary for proper performance of MSHA's functions, including whether the information will have practical utility; (2) the accuracy of MSHA's estimate of 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 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.

TABLE VII-1
UNDERGROUND COAL MINES BURDEN HOURS

Detail Large Small Total
75.370 93 9 102
75.371 158 8 166
75.1915 12 1 13
72.51O 347 5 352
Total 610 23 633

TABLE VII-2
DIESEL EQUIPMENT MANUFACTURERS
BURDEN HOURS

Detail Total
Part 36 520
Total 520

Existing § 75.1915(a). Since proposed § 72.500(a) and (b) requires aftertreatment devices to be used on permissible and heavy duty nonpermissible diesel powered equipment in underground coal mines, then existing § 75.1915(a) requires training related to such devices. Since evidence demonstrating that the training was given must be kept the training costs are included here as a burden. However, no burden hours are shown because the training costs are contracted out to a third party, thus no burden hours would be incurred by mine operators. The compliance costs for the initial training are shown and are annualized at a rate of 7 percent. Qualified persons will need training related to aftertreatment devices, which they will receive either by attending manufacturer's seminars or classroom type training. Three hours of training would be needed, costing $75 per hour per person. The affected mines are 141 large and 13 small underground coal mines.

Underground Coal Annualized Costs

Existing § 75.1915(c) requires a record of those trained. MSHA estimates that it would take no more than 5 minutes (0.0833 hours) in a large and small underground coal mine to make such a record of the trained mechanics. A mine supervisor earning $42 in a coal mine would make the record. The affected mines are 141 large and 13 small underground coal mines. The compliance costs are annualized at a rate of 7 percent.

Underground Coal Mines Burden Hours and Annualized Costs

Proposed § 72.510(a) requires underground coal miners exposed to diesel emissions be annually trained in the: health risks associated with exposure to diesel particulate; methods used in the mine to control diesel particulate concentrations; identification of the personnel responsible for maintaining those controls; and actions miners must take to ensure controls operate as intended. MSHA estimates that each large mine will have 3 training sessions, each lasting 30 minutes(0.5 hrs.). Each small mine will have 1 session lasting 15 minutes(0.25 hrs.). In a coal mine, a supervisor earning $42 per hr. will provide the training to coal miners. Annual burden hours and costs for the mine supervisor that gives the training is shown below.

Underground Coal Mine Burden Hours and Annual Costs

Proposed § 72.510(b) requires underground coal mine operators to keep a record of the annual training. MSHA has estimated recordkeeping costs based on a signature list that would confirm that training was given. MSHA estimates that for each miner to sign a signature list stating that training under this provision has been given will take no more than 30 seconds (0.0083 hrs.). A coal miner's wage is estimated at $26 per hour. Each large mine will have 3 sessions and each small mine will have 1 training session. The annual burden hours and costs for the training records are shown below.

Underground Coal Mine Burden Hours and Annual Costs

Proposed § 75.371(qq) requires underground coal mines to revise their existing mine ventilation plans to include a list of diesel powered units maintained by the mine operator with information about any unit's emission control or filtration system. MSHA estimates that it would take a coal mine supervisor, earning $42 per hour, 1 hour to revise the ventilation plan in a large mine, and 30 minutes (0.5 hours) in a small mine. All 158 large and 15 small underground coal mines using diesel powered equipment must revise their mine ventilation plan.

Underground Coal Mines Burden Hours & Annualized Costs

Existing § 75.370(a) . Under proposed § 75.371(qq) all underground coal mine operators that use diesel powered equipment are required to revise their mine ventilation plans. Revisions to an underground coal mine ventilation plan are governed by § 75.370.

Specifically, § 75.370(a) requires that mine operators: notify the representative of the miners of any proposed plan revisions and provide a copy upon request; make a copy of any proposed revisions available for inspection by the representative of the miners; post a copy of the proposed revisions on the mine bulletin board; and submit a copy to MSHA. MSHA estimates that the revisions would be no longer than 5 pages, and a secretary, earning $16 per hour, would take 20 minutes (0.3333 hrs.) to fulfill the requirements of § 75.370(a). MSHA estimates copy costs at $0.15 per page and postage at $0.32. There are 158 large and 15 small underground coal mine operators that would need to submit the revisions. Cost are annualized at 7 percent.

Underground Coal Mines Burden Hours and Annualized Costs

Existing § 75.370(f). Under proposed § 75.371(qq) all underground coal mine operators that use diesel powered equipment are required to revise their mine ventilation plans. Revisions to an underground coal mine ventilation plan are governed by § 75.370.

Specifically, § 75.370(f) requires that approved revisions to be provided upon request to representatives of miners, made available for inspection by the representative of miners, and posted on the mine bulletin board. The approved revisions are estimated to be no more than 5 pages, and to fulfill the requirements of § 75.370(f) is estimated to take a secretary, earning $16 per hour, 15 minutes (0.25 hrs.). MSHA estimates copy costs at $0.15 per page and postage at $0.32. There are 158 large and 15 small underground coal mine operators that would need to fulfill the requirements of § 75.370(f). Cost are annualized at 7 percent.

Underground Coal Mines Burden Hours and Annualized Costs

Existing Part 36 As a result of proposed § 72.500(a) which requires all permissible equipment to have aftertreatment or filtration devices, manufacturers would need to amend existing diesel power packages installed on permissible machines. MSHA estimates that manufacturers would have to spend about 20 hours per application, at a cost of about $75 per hour, to prepare and submit to MSHA amendments for 16 existing diesel power packages installed on permissible machines. In addition, it would cost manufacturers approximately $2,000 per application to have MSHA evaluate the amended application. The amendments would only have to be made once and thus costs are annualized at a rate of 7 percent.

Cost to Manufacturers for 16 existing approval amendments

Furthermore, apart from the 16 applications noted above, there are 5 more existing diesel power packages installed on permissible machines which will require some substantial redesign and retesting of the exhaust gas conditioning system to allow the use of an exhaust filter. MSHA estimates that manufacturers would have to spend about 40 hours per application, at a cost of $75 per application, to prepare and submit to MSHA amendments for the 5 existing diesel power packages installed on permissible machines. In addition, it would cost manufacturers approximately $25,000 per application to have MSHA evaluate and perform tests. The amendments would only have to be made once and thus costs are annualized at a rate of 7 percent.

Cost to Manufacturers for 5 existing approval amendments

REFERENCES

1. 1. U.S. Department of Labor, Mine Safety and Health Administration, Division of Mining Information Systems. Coal 1996 Size-Group Report, (Quarters 1 - 4, 1996). MSHA/DMIS CM 441.

2. 2. Ibid.

3. 3. U.S. Department of Energy, Energy Information Administration. Annual Energy Review 1996, DOE/EIA-0384(96). July 1997. Pp. 209.

4. 4. Ibid. P. 209.

5. 5. Ibid. P. 221.

6. 6. Ibid. P. 205.

7. Western Mine Engineering, Inc. U.S. Coal Mine Salaries, Wages and Benefits. 1996 Survey Results.

8. U.S. Department of Energy/Energy Information Administration. Coal Industry Annual 1995, DOE/EIA...-0584(95). October 1996. Pp. 154.