pp. 34-35

ozone concentrations for monitoring sites in the Transport Rule 

covered states (including the six states for which EPA issued a 

supplemental proposal for ozone-season NOX requirements) in 2014.

For annual PM2.5, the average reduction across all monitoring 

sites in covered states in 2014 is 1.41 microgram per meter 

cubed (μg/m3) and the greatest reduction at a single site is 3.60 

μg/m3. For 24-hour PM2.5, the average reduction across all 

monitoring sites in covered states in 2014 is 4.3 μg/m3 and the 

greatest reduction at a single site is 11.6 μg/m3. And finally, 

for 8-hour ozone, the average reduction across all monitoring 

sites in covered states in 2014 is 0.3 parts per billion (ppb) 

and the greatest is 3.9 ppb. See section VIII for further 

information on air quality improvements. 

EPA estimated the Transport Rule’s costs and benefits, 

including effects on sensitive and vulnerable and environmental 

justice communities. Table III-4, below, summarizes some of 

these results. Further discussion of the results is provided in 

preamble section VIII, below, and in the Regulatory Impact 

Analysis (RIA). Estimates here are subject to uncertainties 

discussed further in the RIA.

 

Table III-4. Summary of Annual Benefits, Costs, and Net 

Benefits of the Final Transport Rule in 2014

(Billions of 2007$)a
Description Transport Rule Remedy (Billions of 2007 $)

3 % discount rate 7 % discount rate

Social costs $0.81 $0.81

Total monetized 

benefitsb $120 to $280 $110 to $250

Net benefits 

(benefits-costs)

$120 to $280 $110 to $250

a All estimates are for 2014, and are rounded to two significant 

figures.

b The total monetized benefits reflect the human health benefits 

associated with reducing exposure to PM2.5 and ozone and the 

welfare benefits associated with improved visibility in Class I 

areas. The reduction in premature mortalities account for over 

90 percent of total monetized PM2.5 and ozone benefits.

As a result of updated analyses and in response to public 

comments, the final Transport Rule differs from the proposal in 

a number of ways. The differences between proposal and final 

rule are discussed throughout this preamble. Some key changes 

between proposal and final rule are that EPA:

 Updated emission inventories (resulting in generally lower 

base case emissions). See section V.C.
pp. 432-433

minus social costs) as shown in Table VIII.C-3 for the Transport 

Rule is approximately $120 to $280 billion or $110 to $250 

billion (3 percent and 7 percent discount rates, respectively) 

in 2014. Implementation of the rule is expected to provide 

society with a substantial net gain in social welfare based on 

economic efficiency criteria.

 A listing of the benefit categories that could not be 

quantified or monetized in our benefit estimates is provided in 

Table VIII.C-4.

Table VIII.C–3 Summary of Annual Benefits, Costs, and Net 

Benefits of the Final Transport Rule in 2014

(Billions of 2007$)a

Description Transport Rule Remedy (Billions of 2007 $)

3 % discount rate 7 % discount rate

Social costs $0.81 $0.81

Total monetized 

benefitsb $120 to $280 $110 to $250

Net benefits 

(benefits-costs)

$120 to $280 $110 to $250

a All estimates are for 2014, and are rounded to two significant 

figures.

b The total monetized benefits reflect the human health benefits 

associated with reducing exposure to PM2.5 and ozone and the 

welfare benefits associated with improved visibility in Class I 

areas. The reduction in premature mortalities account for over 

90 percent of total monetized PM2.5 and ozone benefits.

The annualized regional cost of the rule, as quantified here, is 

EPA’s best assessment of the cost of implementing the Transport 

Rule. These costs are generated from rigorous economic modeling 
of changes in the power sector expected from the rule. This 

type of analysis, using IPM, has undergone peer review and been 

upheld in federal courts. The direct cost includes, but is not 

limited to, capital investments in pollution controls, operating 

expenses of the pollution controls, investments in new 

generating sources, and additional fuel expenditures. The EPA 

believes that these costs reflect, as closely as possible, the 

additional costs of the Transport Rule to industry. The 

relatively small cost associated with monitoring emissions, 

reporting, and recordkeeping for affected sources is not 

included in these annualized cost estimates, but EPA has done a 

separate analysis and estimated the cost to be about $26 million 

(see section XII.B, Paperwork Reduction Act). However, there 

may exist certain costs that EPA has not quantified in these 

estimates. These costs may include costs of transitioning to 

this rule, such as the costs associated with the retirement of 

smaller or