# E C 

# / R Incorporated Providing Environmental Technical Support Since 1989

501 Eastowne Drive, Suite 325  Chapel Hill, North Carolina 2751 4 Telephone: (919) 484
- 0222  Fax: (919) 484
- 0122 

### MEMORANDUM
DATE: August 10 , 20 10 SUBJECT: Cost per Ton of HAP Reduced for Existing Stationary SI RICE FROM: Bradley

Nelson and Tanya Parise, EC/R, Inc. TO: Melanie King , EPA OAQPS/SPPD/ESG
1.0 PURPOSE The purpose of this memorandum is to present the cost per ton of reducing hazardous air pollutants (HAP) emissions from existing stationary spark ignition (SI) reciprocating internal combustion engines (RICE). In addition to HAP, this memorandum also presents the cost per ton of reducing carbon monoxide (CO), volatile organic compounds (VOC), and nitrogen oxides (NO x

### ). In terms of aftertreatment controls that reduce HAP emissions from stationary SI engines, the applicable technologies are oxidation catalyst for lean burn SIengines and non
selective catalytic reduction (NSCR) for rich burn SIengines. 2.0 COST OF CONTROLS The capital and annual cost of HAP control technology for SI engines controls were developed using equipment cost information obtained from control technology vendors and industry groups, and the estimation methodology outlined in the EPA Air Pollution Control Cost Manual. 1 

### The development of the cost equations for each of the applicable control technologies is presented in a control cost memorandum. 2 

### EPA determined that the following cost equations in Table 1 are representative of the applicable add
- on controls to be considered for stationary SI engines.

1 EPA Air Pollution Control Cost Manual Sixth Edition, January 2002, EPA/452/B
- 02
- 001
. 2 Memorandum from Bradley Nelson, EC/R Inc., to Melanie King, EPA OAQPS/SPPD/ESG, Control Costs for Existing Stationary SI RICE, June 29, 2010 .

### 2 Table 1. Annual and Capital Costs Equations HAP Control Device Annual Cost ($2009) Capital Cost ($2009) Oxidation Catalyst (2SLB) $11.4 x HP + $13,928 $47.1 x HP + $41,603 Oxidation Catalyst (4SLB) $1.81 x HP + $3,442 $12.8 x HP + $3,069 NSCR (4SRB) $4.77 x HP + $5,679 $24.9 x HP + $13,118 3.0 EMISSION REDUCTIONS Uncontrolled emissions, i.e. , emissions without add
- on controls were calculated using the emission factors presented in Table 2 of this memorandum and assuming that non
- emergency SI engines operate on average for 2,800 hours per ye ar (hrs/yr) and emergency SIengines operate on average for 50 hrs/yr. Emissions reductions for the control technologies were estimated using control efficiencies presented in a previous memorandum developed for the 2004 RICE NESHAP. 3 

### The memorandum presents oxidation catalyst and NSCR control efficiencies observed during testing of a 2
- stroke lean burn (2SLB) engines and a 4
- stroke lean burn (4SLB) engine with oxidation catalyst, and a 4
- stroke rich burn (4SRB) engine with NSCR. EPA used the average percent reduction observed during testing in order to estimate emissions reductions, which are also presented in Table 2 of this memorandum.

Table 2. Summary of SI Engine Emission Factors Engine Type Pollutant Emission Factor (lb/HP-hr) Percent Reduction
2SLB HAP 5.96 E
- 04 43%

CO 1.06 E
- 02 65% VOC 3.07E
- 0 3 43%
4SLB HAP 5.41 E
- 04 71%

CO 3.92 E
- 03 94% VOC 2.78E
- 03 71%

4SRB HAP 2.43 E
- 04 76%

CO 1.93 E
- 02 49% VOC 1.25E
- 03 76% NO x 1 

### 1.47 E
- 02 97% 1 

### Emission factors for NO x 

### are not presented for 2SLB and 4SLB SI engines, because no emission reductions are expected from the use of an oxidation catalyst.

3 Memorandum from Melanie Taylor and Jennifer Snyder, AGTI to Sims Roy, EPA OAQPS ESD Combustion Group, CO Removal Effici ency as a Surrogate for HAP removal Efficiency, January 7, 2004.

### 3

For existing stationary

2SLB and 4SRB engines greater than or equal to 100 horsepower (HP) and less than or equal to 500 HP at major sources , the maximum achievable control technology

(MACT) floor is a numerical emission limit that is based on emissions data from the best controlled 12 percent of engines in the emissions data set . These engines were not equipped with add
- on emission controls , therefore, the cost to comply with the MACT floor would only inc lude the cost of demonstrating that the requirements are met by performing testing, monitoring, recordkeeping and reporting , and not the cost of add
- on controls
. EPA looked at going beyond
-the
- floor for these engines by requiring emission levels expected with using add
on controls. S ince the cost to demonstrate compliance is already included at the MACT floor level, costs associated with going beyond
-the
- floor would include the cost of add
- on controls. Consequently, the cost per ton values are estimated using the cost of add
- on controls only
. For stationary 4SLB engines greater than or equal to 100 HP and less than or equal to 500 HP at major sources, the best controlled 12 percent of engines in the emissions data set for 4SLB engines used add on control s, and the MACT floor reflects this fact. The cost per ton values for existing stationary

2SLB , 4SLB and 4SRB engines at major sources are presented in Tables 3 , 4 , and 5
. The cost per ton values for stationary 2SLB and 4SRB engines represent the costs f or going beyond
-the
- floor. The cost per ton values for 4SLB engines represent the costs at the MACT floor. For existing stationary

2SLB, 4SLB and 4SRB engines at area sources, the generally available control technology (GACT) is management practices. Performance testing, monitoring, recordkeeping and reporting would not be necessary with GACT, or management practices. EPA looked at going beyond GACT for these engines by requiring emission levels expected with using add
- on controls. Consequently, the co st per ton values are estimated using the cost of add
- on controls, plus the cost of demonstrating compliance , Therefore, the cost per ton values for engines are area sources include the cost of performance testing, monitoring, recordkeeping, and reporting , in addition to the cost of add
- on controls for existing stationary engines at area sources
. The cost per ton values for existing stationary 2SLB, 4SLB, and 4SRB engines at area sources are presented in Tables 6 through 8
. 4.0 BENEFITS The benefits p er ton of PM2.5 

### precursors VOC and NO x 

### at 3 percent interest rate is $1,200 to $3,000 and $4,900 to $12,000 respectively. The benefits per ton of VOC and NO x 

### at 7 percent interest rate is $1,100 to $2,700 and $4,400 to $12,000 respectively. For more information on the benefits per ton of pollutants reduced and total monetized benefits, please refer to the “Regulatory

Impact Analysis (RIA) for Existing Stationary Spark Ignition Engines NESHAP,” which can be found in the docket (EPA
-HQ
- OAR
- 2008
- 0708).

### Table 3 . Cost per ton ($/ton) of HAP, CO, and VOC Reduced per 2SLB Engine ($2009) -Major Sources

Engine Data Engine Size (HP) Average Engine Horsepower 25 100 150 250 300 500 750 1000 Non
- Emergency Engine Operating Hours per Year (hr/yr) 2800 2800 2800 2800 2800 2800 2800 2800 Capital Cost of HAP Control ($2009) $42,781 $46,313 $48,668 $53,378 $55,733 $65,153 $76,928 $88,703 Annual Cost of HAP Control ($2009/yr) $14,213 $15,068 $15,638 $16,778 $17,348 $19,628 $22,478 $25,328 Non -Emergency Engines - HA P Uncontrolled HAP Emissions (Tons/yr) 0.0209 0.0834 0.1252 0.2086 0.2503 0.4172 0.6258 0.8344 HAP Emission Reductions (Tons/yr) 0.0090 0.0360 0.0541 0.0901 0.1081 0.1802 0.2703 0.3605 Annual Cost of Control per Ton of HAP Removed ($/Ton ) $1,577,203 $418,020 $289,222 $186,184 $160,424 $108,905 $83,145 $70,266 Non -Emergency Engines - CO Uncontrolled CO Emissions (Tons/yr) 0.37 1.48 2.23 3.71 4.45 7.42 11.13 14.84 CO Emission Reductions (Tons/yr) 0.24 0.96 1.44 2.40 2.88 4.79 7.19 9.59 Annual Cost of Control per Ton of CO Removed ($/Ton) $59,303 $15,718 $10,875 $7,001 $6,032 $4,095 $3,126 $2,642 Non -Emergency Engines - VOC Uncontrolled VOC Emissions (Tons/yr) 0.107 0.429 0.644 1.073 1.288 2.146 3.219 4.2 92 VOC Emission Reductions (Tons/yr) 0.046 0.185 0.278 0.464 0.556 0.927 1.391 1.854 Annual Cost of Control per Ton of VOC Removed ($/Ton) $306,608 $81,263 $56,225 $36,194 $31,186 $21,171 $16,163 $13,660

### 5 Table 4 . Cost per ton ($/ton) o f HAP, CO, and VOC Reduced per 4SL B Engine ($2009) -Major Sources Engine Data Engine Size (HP) Average Engine Horsepower 25 50 150 250 300 500 750 1000 Non
- Emergency Engine Operating Hours per Year (hr/yr) 2800 2800 2800 2800 2800 2800 2800 2800 Capital Cost of HAP Co ntrol ($2009) $3,389 $3,709 $4,989 $6,269 $6,909 $9,469 $12,669 $15,869 Annual Cost of HAP Control ($2009/yr) $3,487 $3,533 $3,714 $3,895 $3,985 $4,347 $4,800 $5,252 Non -Emergency Engines - HAP Uncontrolled HAP Emissions (Tons/yr) 0.0189 0.0379 0.1136 0.1894 0.2272 0.3787 0.5681 0.7574 HAP Emission Reductions (Tons/yr) 0.0135 0.0269 0.0808 0.1346 0.1616 0.2693 0.4039 0.5385 Annual Cost of Control per Ton of HAP Removed ($/Ton) $259,029 $131,195 $45,972 $28,928 $24,667 $16,145 $11,883 $9 ,753 Non -Emergency Engines - CO Uncontrolled CO Emissions (Tons/yr) 0.14 0.27 0.82 1.37 1.65 2.74 4.12 5.49 CO Emission Reductions (Tons/yr) 0.13 0.26 0.77 1.29 1.55 2.58 3.87 5.16 Annual Cost of Control per Ton of CO Removed ($/Ton) $2 7,040 $13,695 $4,799 $3,020 $2,575 $1,685 $1,240 $1,018 Non -Emergency Engines - VOC Uncontrolled VOC Emissions (Tons/yr) 0.10 0.19 0.58 0.97 1.17 1.95 2.92 3.90 VOC Emission Reductions (Tons/yr) 0.07 0.14 0.42 0.69 0.83 1.39 2.08 2.77 A nnual Cost of Control per Ton of VOC Removed ($/Ton) $50,355 $25,504 $8,937 $5,624 $4,795 $3,138 $2,310 $1,896

### 6

Table 5 . Cost per ton ($/ton) o f HAP, CO, VOC, and NOx Reduced per 4SRB Engine ($2009) -Major Sources Engine Data Engine Size (HP) Average E ngine Horsepower 25 50 150 250 300 500 750 1000 Non
- Emergency Engine Operating Hours per Year (hr/yr) 2800 2800 2800 2800 2800 2800 2800 2800 Capital Cost of HAP Control ($2009) $13,741 $14,363 $16,853 $19,343 $20,588 $25,568 $31,793 $38,018 Annual Cost of HAP Control ($2009/yr) $5,798 $5,918 $6,395 $6,872 $7,110 $8,064 $9,257 $10,449 Non -Emergency Engines - HAP Uncontrolled HAP Emissions (Tons/yr) 0.0085 0.0170 0.0510 0.0851 0.1021 0.1701 0.2552 0.3402 HAP Emission Reductions (Tons/yr ) 0.0065 0.0129 0.0388 0.0647 0.0777 0.1294 0.1942 0.2589 Annual Cost of Control per Ton of HAP Removed ($/Ton) $895,855 $457,140 $164,663 $106,168 $91,544 $62,296 $47,672 $40,360 Non -Emergency Engines - CO Uncontrolled CO Emissions (Ton s/yr) 0.68 1.35 4.05 6.76 8.11 13.51 20.27 27.02 CO Emission Reductions (Tons/yr) 0.33 0.66 1.98 3.30 3.96 6.61 9.91 13.21 Annual Cost of Control per Ton of CO Removed ($/Ton) $17,553 $8,957 $3,226 $2,080 $1,794 $1,221 $934 $791 Non -Emergency Engines - VOC Uncontrolled VOC Emissions (Tons/yr) 0.04 0.09 0.26 0.44 0.53 0.88 1.31 1.75 VOC Emission Reductions (Tons/yr) 0.03 0.07 0.20 0.33 0.40 0.67 1.00 1.33 Annual Cost of Control per Ton of VOC Removed ($/Ton) $174,154 $88,868 $32,011 $20,639 $17,796 $12,110 $9,268 $7,846 Non -Emergency Engines - NOx Uncontrolled NOx Emissions (Tons/yr) 0.51 1.03 3.09 5.15 6.17 10.29 15.44 20.58 NOx Emission Reductions (Tons/yr) 0.50 1.00 3.00 5.00 6.00 10.00 15.00 20.00 Annual Cost of C ontrol per Ton of NOx Removed ($/Ton) $11,594 $5,916 $2,131 $1,374 $1,185 $806 $617 $522

### 7 Table 6 . Cost per ton ($/ton) of HAP, CO, and VOC Reduced per 2SLB Engine ($2009) -Area Sources Engine Data Engine Size (HP) Average Engine Horsepower 25 100 15 0 250 300 500 750 1000 Non
- Emergency Engine Operating Hours per Year (hr/yr) 2800 2800 2800 2800 2800 2800 2800 2800 Capital Cost of HAP Control ($2009) $43,349 $46,881 $49,236 $53,946 $56,301 $65,721 $77,496 $89,271 Annual Cost of HAP Control ($2009/yr ) $17,659 $18,514 $19,084 $20,224 $20,794 $23,074 $25,924 $28,774 Non -Emergency Engines - HAP Uncontrolled HAP Emissions (Tons/yr) 0.0209 0.0834 0.1252 0.2086 0.2503 0.4172 0.6258 0.8344 HAP Emission Reductions (Tons/yr) 0.0090 0.0360 0. 0541 0.0901 0.1081 0.1802 0.2703 0.3605 Total Annual Cost per Ton of HAP Removed ($/Ton) $1,959,602 $513,620 $352,956 $224,424 $192,291 $128,025 $95,892 $79,826 Non -Emergency Engines - CO Uncontrolled CO Emissions (Tons/yr) 0.37 1.48 2.2 3 3.71 4.45 7.42 11.13 14.84 CO Emission Reductions (Tons/yr) 0.24 0.96 1.44 2.40 2.88 4.79 7.19 9.59 Total Annual Cost per Ton of CO Removed ($/Ton) $73,682 $19,312 $13,271 $8,438 $7,230 $4,814 $3,606 $3,001 Non -Emergency Engines - VOC Uncontrolled VOC Emissions (Tons/yr) 0.107 0.429 0.644 1.073 1.288 2.146 3.219 4.292 VOC Emission Reductions (Tons/yr) 0.046 0.185 0.278 0.464 0.556 0.927 1.391 1.854 Total Annual Cost per Ton of VOC Removed ($/Ton) $380,947 $99,848 $68,615 $43,628 $37, 381 $24,888 $18,641 $15,518

### 8 Table 7 . Cost per ton ($/ton) of HAP, CO, and VOC Reduced per 4SLB Engine ($2009) -Area Sources
Engine Data Engine Size (HP) Average Engine Horsepower 25 50 150 250 300 500 750 1000 Non
- Emergency Engine Operating Hours p er Year (hr/yr) 2800 2800 2800 2800 2800 2800 2800 2800 Capital Cost of HAP Control ($2009) $3,957 $4,277 $5,557 $6,837 $7,477 $10,037 $13,237 $16,437 Annual Cost of HAP Control ($2009/yr) $6,933 $6,978 $7,159 $7,340 $7,431 $7,793 $8,245 $8,698 Non -Emer

gency Engines - HAP Uncontrolled HAP Emissions (Tons/yr) 0.0189 0.0379 0.1136 0.1894 0.2272 0.3787 0.5681 0.7574 HAP Emission Reductions (Tons/yr) 0.0135 0.0269 0.0808 0.1346 0.1616 0.2693 0.4039 0.5385 Total Annual Cost per Ton of HAP R emoved ($/Ton) $514,993 $259,177 $88,633 $54,524 $45,997 $28,943 $20,416 $16,152 Non -Emergency Engines - CO Uncontrolled CO Emissions (Tons/yr) 0.14 0.27 0.82 1.37 1.65 2.74 4.12 5.49 CO Emission Reductions (Tons/yr) 0.13 0.26 0.77 1.29 1.55 2.58 3.87 5.16 Total Annual Cost per Ton of CO Removed ($/Ton) $53,759 $27,055 $9,252 $5,692 $4,802 $3,021 $2,131 $1,686 Non -Emergency Engines - VOC Uncontrolled VOC Emissions (Tons/yr) 0.10 0.19 0.58 0.97 1.17 1.95 2.92 3.90 VOC E mission Reductions (Tons/yr) 0.07 0.14 0.42 0.69 0.83 1.39 2.08 2.77 Total Annual Cost per Ton of VOC Removed ($/Ton) $100,115 $50,384 $17,230 $10,600 $8,942 $5,626 $3,969 $3,140

### 9 Table 8 . Cost per ton ($/ton) of HAP, CO, VOC, and NOx Reduced per 4SRB Engine ($2009) -Area Sources Engine Data Engine Size (HP) Average Engine Horsepower 25 50 150 250 300 500 750 1000 Non
- Emergency Engine Operating Hours per Year (hr/yr) 2800 2800 2800 2800 2800 2800 2800 2800 Capital Cost of HAP Control ($2009) $14,309 $14,931 $17,421 $19,911 $21,156 $26,136 $32,361 $38,586 Annual Cost of HAP Control ($2009/yr) $9,744 $9,863 $10,340 $10,817 $11,056 $12,010 $13,202 $14,395 Non -Emergency Engines - HAP Uncontrolled HAP Emissions (Tons/yr) 0.0085 0.0170 0 .0510 0.0851 0.1021 0.1701 0.2552 0.3402 HAP Emission Reductions (Tons/yr) 0.0065 0.0129 0.0388 0.0647 0.0777 0.1294 0.1942 0.2589 Total Annual Cost per Ton of HAP Removed ($/Ton) $1,505,529 $761,977 $266,275 $167,135 $142,350 $92,780 $67,995 $55,602 Non -Emergency Engines - CO Uncontrolled CO Emissions (Tons/yr) 0.68 1.35 4.05 6.76 8.11 13.51 20.27 27.02 CO Emission Reductions (Tons/yr) 0.33 0.66 1.98 3.30 3.96 6.61 9.91 13.21 Total Annual Cost per Ton of CO Removed ($/Ton) $29,499 $14,930 $5,217 $3,275 $2,789 $1,818 $1,332 $1,089 Non -Emergency Engines - VOC Uncontrolled VOC Emissions (Tons/yr) 0.04 0.09 0.26 0.44 0.53 0.88 1.31 1.75 VOC Emission Reductions (Tons/yr) 0.03 0.07 0.20 0.33 0.40 0.67 1.00 1.33 Total Annu al Cost per Ton of VOC Removed ($/Ton) $292,675 $148,128 $51,764 $32,491 $27,673 $18,036 $13,218 $10,809 Non -Emergency Engines - NOx Uncontrolled NOx Emissions (Tons/yr) 0.51 1.03 3.09 5.15 6.17 10.29 15.44 20.58 NOx Emission Reductions (Tons/yr) 0.50 1.00 3.00 5.00 6.00 10.00 15.00 20.00 Total Annual Cost per Ton of NOx Removed ($/Ton) $19,485 $9,862 $3,446 $2,163 $1,842 $1,201 $880 $720