MEMORANDUM

TO: Toni Jones, U.S. Environmental Protection Agency

FROM: Eastern Research Group, Inc.

DATE: November 30, 2012

SUBJECT: Revised Economic Impact Analysis Inputs for Existing CISWI Units 

BACKGROUND

The U.S. Environmental Protection Agency (EPA), under section 129 of the Clean Air Act (CAA), is 

required to regulate emissions of nine pollutants from Commercial and Industrial Solid Waste 

Incineration (CISWI) units: hydrogen chloride (HCl), carbon monoxide (CO), lead (Pb), cadmium 

(Cd), mercury (Hg), particulate matter (PM), dioxins/furans (PCDD/PCDF), nitrogen oxides (NOx), 

and sulfur dioxide (SO2).

On December 1, 2000, EPA adopted new source performance standards and emission guidelines for 

commercial and industrial solid waste incineration units established under Sections 111 and 129 of 

the Clean Air Act. In 2001 EPA was granted a petition for reconsideration regarding the definitions 

of "commercial and industrial waste" and "commercial and industrial solid waste incineration unit." 

In 2001, the United States Court of Appeals for the District of Columbia Circuit granted EPA’s 

voluntary remand, without vacatur, of the 2000 rule. In 2005, EPA proposed and finalized the 

commercial and industrial solid waste incineration definition rule which revised the definition of 

“solid waste,” "commercial and industrial waste," and "commercial and industrial waste incineration 

unit." In 2007, the United States Court of Appeals for the District of Columbia Circuit vacated and 

remanded the 2005 commercial and industrial solid waste incineration definition rule.

On March 21, 2011, the EPA promulgated revised NSPS and EG as its response to the voluntary 

remand that was granted in 2001 and the vacatur and remand of the commercial and industrial solid 

waste incineration definition rule in 2007. In addition, the standards re-development included the 5-

year technology review of the new source performance standards and emission guidelines required 

under Section 129. Following that action, the Administrator received petitions for reconsideration 

and identified some issues that warranted further opportunity for public comment. In addition, data 

were received that enabled the EPA to revise the CISWI inventory of waste-burning kilns and energy 

recovery units to more accurately reflect the definition of non-hazardous secondary materials. On 

December 23, 2011 the EPA published proposed amendments that incorporated these changes and 

allowed public comment on specific issues identified for reconsideration. The EPA has developed a 

series of maximum achievable control technology (MACT) floor options to support that redevelopment. The development of the MACT floors used to determine these options is discussed in 

more detail in a separate memorandum.

1 The purpose of this memorandum is to present the 

information required for an economic impact analysis for existing sources.

ECONOMIC INPUTS

EPA’s solid waste definition rule defines which non-hazardous secondary materials that are used as 

fuels or ingredients in combustion units are solid wastes under Subtitle D of RCRA. Table 1 shows 
economic inputs for the 76 facilities with existing CISWI units that we anticipate will still be in 

operation as of the rule’s implementation.

Facility information comes primarily from responses to the Phase 1 survey2

, and has been provided 

by the actual respondent. This includes the small/large entity classification.

In a few cases, incomplete responses to the survey resulted in data gaps. Many of these were filled in 

by reviewing the corporate entities’ website or business data websites for general number of 

employees or annual sales information. Then, by comparing this data to the U.S. Small Business 

Administration’s (SBA) small business definitions, determinations were made on whether the 

corporation is a small or large entity. 

Annual sales data were obtained through online resources, mainly through business information 

websites and corporate U.S. Securities and Exchange Commission report data. The URLs for the 

sales data are listed in the spreadsheet. In a few cases, facility specific sales data were unavailable. 

In these instances, a subcategory average value was used. If this average exceeded corporate sales, 

then the corporate sales value was assumed for the facility.

Compliance costs associated with compliance with the final emission limits are presented in the 

MACT Compliance TCI (total capital investment) and MACT Compliance TAC (total annual costs), 

and are the results of control and monitoring cost calculations presented in the cost analysis.1

 Note 

that costs are annualized at a 7% interest rate. For subcategories of units that may have the option of 

disposing of waste in a landfill or municipal waste combustor, the cost of hauling and tipping fees 

have been summed up and presented for the facilities that this may apply to. The lowest cost 

alternative (i.e., compliance or alternative to combustion) is presented in the Lowest Cost columns.

REFERENCES

1. “Final Reconsideration Compliance Cost Analyses for CISWI Units” Memorandum from Eastern 

Research Group, Inc. to Toni Jones, U.S. Environmental Protection Agency. November 26, 2012.

2. Questionnaire for Boilers, Process Heaters, Incinerators and Other Combustion Units: Survey 

Overview. OMB Control No. 2060-0616, http://survey.erg.com/ss/wsb.dll/s/7g8d