## Domtar Ashdown Mill- Power Boiler No. 2

**LNB Capital and O&M Cost Estim ate**  **Summary of EPA's revisions to Dom tar's LNB cost estim**  **ate:** Domtar's estimate is based on 2006 dollars. In this spreadsheet we have revised the cost estimate by escalating to 2013 dollars using the Chemical Engineering Plant Cost Index (CEPCI).

Domtar's Cost Estimates EPA Revised Cost Estimates **Capital Costs** Direct Capital (DC) Costs $2,700,000 $2,700,000 Purchased Equipment Costs $1,800,000 $1,800,000 Direct Installation Costs $900,000 $900,000 Indirect Capital (IC) Costs $2,700,000 $2,700,000 Total Capital Investment (TCI) (2006 Dollars) TCI= DC + IC $5,400,000 $5,400,000 Total Capital Investment (TCI) (2013 Dollars) N/A $6,131,745 CEPCI 2006 N/A 499.6 CEPCI 2013 N/A 567.3

Capital Recovery Factor (CRF) CRF= [I x (1+i)^a]/ [(1+i)^a-1], where I=interest rate, a=equipment life, 30-yr life, 7% interest 0.129504575 0.080586403 **Operating Costs** CEPCI 2006 N/A 499.6 CEPCI 2013 N/A 567.3 Direct Operating Costs (DOC) (2013 Dolllars) N/A $194,557 Direct Operating Costs (DOC) (2006 Dolllars) $171,339 $171,339 Operating Labor $9,022 $9,022 Operating Labor Supervision 15% of Operator Pay $1,353 $1,353 Maintenance Labor $9,922 $9,922 Maintenance Materials $9,922 $9,922 Utilities- Electricity $141,120 $141,120 Utilities- Water $0 $0 Waste Treatment and Disposal $0 $0 CEPCI 2006 N/A 499.6 CEPCI 2013 N/A 567.3 Indirect Operating Costs (IOC) (2013 Dollars) N/A $265,858 Indirect Operating Costs (IOC) (2006 Dollars) $234,131 $234,131 Overhead 60% of Labor and Material $18,131 $18,131 Property Tax 1% of TCI $54,000 $54,000 Insurance 1% of TCI $54,000 $54,000 Administration 2% of TCI $108,000 $108,000

**Annual Costs** Direct Operating Costs (DOC) $171,339 $171,339 Indirect Operating Costs (IOC) $234,131 $234,131 Annualized Capital Cost (Capital Recovery) CFR* TCI $699,324.71 $494,135.30 **Total Annual Costs (TAC) TAC= DOC + IOC**  $1,104,795 $899,605
Baseline Emissions (Uncontrolled NOx Emissions) 2514 1,536 Control Efficiency 30% 30% Anuual Emissions Reductions (NOx tpy) 754 461 **Average Cost-effectiveness of Controls ($/ton rem oved)**  $1,465 $1,951

1: Based on Domtar's cost analysis, the Direct Inatallation Costs consist of foundation and support, handling and erection, electrical, piping, insulation, and painting.

### Explanation of EPA Cost Estim **ate Revisions**

**TCI escalated from 2006 to 2013 dollars** 

**Dom tar assum**  **ed a 10-yr equipm ent life and 5% interest, but a 30-yr equipm**  **ent life can be expected for LNB with 7% interest; We have revised the CRF to reflect this**

**DOC escalated from 2006 to 2013 dollars** 

**IOC esclated from 2006 to 2013 dollars** 

**Annualized Capital Cost revised to reflect revision to the Total Capital Investm ent and to the Capital Recovery Factor.**  **Total Annual Cost revised to reflect revision to the Annualized Capital Cost.**
**In the 2006 cost analysis, Dom tar used the m**  **axim um 24-hour em**  **ission rate to calculate the baseline em issions to be used in the cost-effectiveness calculations. We are using the actual em**  **issions from 2001-2003 as our baseline em** **issions.**

**Revision to the Annual Em issions Reductions reflects the new baseline em**  **issions.**

### Dom**tar assum ed a 10-yr equipm**  **ent life and 5% interest, but a 30-yr equipm ent life can be expected for LNB with 7% interest; We have revised the CRF to reflect this** 

**In the 2006 cost analysis, Dom tar used the m**  **axim um 24-hour em**  **ission rate to calculate the baseline em issions to be used in the cost-effectiveness calculations. We are using the actual em**  **issions from 2001-2003 as our baseline em** **issions.**