OAR Box 1828 

Prepped by Ollie Stewart 

Document Number: 

137) ll-K-(B)-136 

Docket Number: 

A-83-27 

Printed 11/12/200811:12:53 AM Sheet 137 of 325 

P.1 
P.2 

B ^~I— I ENERGY AND ENVIRONMENTAL ANALYSIS, INC. A _ O O m O 7 

j II-K-(B)-136 

April 5, 1984 .' 

Mr. Robert Short 

Economic Analysis Branch 

Environmental Protection Agency 

MD-12 

Research Triangle Park, NC 27711 

Subject: Industrial Boiler NSPS; (1) Major Steam Users 

Economic Impacts, and (2) Background Data on Model 

Boilers and Value Added for Selected Industries 

EPA Contract No. 68-02-3536, Task #34 

Dear Robert: 

Attached are the three tables providing the remianing data on the revised 

economic impact analysis for the Industrial Boiler NSPS SO- Alternative 

Standard: 

• Table 1 contains product price impacts for the major steam 

users. The values for the elements that are used in computing 

the price impacts are also shown. As you can see, the impacts 

are negligible within each industry group. 

• Table 2 lists the major assumptions for the model boilers for 

each of the six selected industries whose impacts were analyzed 

and sent to you on March 4, 1984. 

• Table 3 presents the value added and value of shipments data 

used to calculate cost impacts as a percentage of value added 

for the selected industries' model plants. Cost impacts as a 

percentage of value added were not done for the major steam 

users, since their impacts are negligible as a percentage of 

total product cost. 

If you have any questions, please give me a call. 

Sincerely, / / / 

7<6JL 

Karl F. Held 

Project Manager 

KFH/ce 

Enclosure 

cc: Al Wehe 

Economic s / Engineerin g 
TABLE 1 

MAJOR STEAM USERS ECONMIC IMPACTS 1/ 

Industry 

Food 

Textiles 

Paper 

Chemicals 

Petroleum Refining 

Stone, Clay and Glass 

Steel 

Aluminum 

Other 

Total 

Steam/Product Price 

(MMBtu/j of Shipments) 

.0035 

.0047 

.0204 

.0152 

.0042 

.0014 

.0060 

.0147 

.0008 

.0033 

% Steam 

Affected 

15% 

8% 

6% 

18% 

0 

0 

0.3% 

0.4% 

11% 

12% 

New St 

(Alternat 

earn Cost Impact 

i v e NSPS-Base Case) 

($/MMBtu) 

Low Gas Pric e 

0.016 

0 

0.017 

0.015 

0 

0 

0.020 

0.017 

High Gas Pric e 

0.23 9 

0.187 

0.267 

0.28 2 

0.950 

0.254 

0.18 3 

0.24 5 

Change i n Product Pric e 

(Percent) 

. Low-Gas Pric e 

<0.01 

0 

<0.01 

<0.01 

0 

0 

<0.01 

<0.0 1 

Hjl jh Gas Pric e 

0.0 1 

0.0 1 

0.0 3 

0.0 8 

<0.0 1 

<0.0 1 

<0.01 

0.0 1 

1 / Low gas price case impacts are based on IFCAM round 3 (12/20/83), using Option Case Ul results (i.e., 90% scrubbing requirement for 

coal and residual oil-fired boilers >100 MMBtu/hr). High gas price case impacts are based on IFCAM round 4 (2/29/84), using Option 

#5 results (i.e., 90% scrubbing requirement for coal and residual oil-fired boilers, with a 0.4 lb SO, ceiling for coal-fired boilers). 

The -base cases assume that the PM/NO recommended standard is in force. 

TJ 

CO 
TABLE 2 

MODEL BOILER ASSUMPTIONS FOR 

SELECTED INDUSTRIES 

Industry 

Beet Sugar 

Rubber Reclaiming 

Auto Manufacturing 

Petroleum Refining 

Iron and Steel 

Liquor Distilling 

Boiler Size 

(MMBtu/hr) 

175 

100 

100 

325 

137 

100 

Capacity 

Utilization 

(Percent) 

45 

45 

45 

75 

55 

45 

Fuel Types 

Coal 

Coal 

Coal 

Residual Oil 

Coal 

Coal 

EPA 

Region 

8 

, 5 

5 

6 

5 

4 

Pollution Control Equipment 

Base Case 

Fabric Filter 

Fabirc Filter 

Fabric Filter 

Fabric Filter 

Fabric Filter 

S0_ Alternative 

Lime Spray Dryer 

Lime Spray Dryer 

Lime Spray Dryer 

Once-thru Sodium 

FGD 

Lime Spray Dryer 

Lime Spray Dryer 
P.5 

TABLE 3 

RATIOS OF VALUE ADDED TO VALUE OF SHIPMENTS 1/ 

Selected Idustry 

Beet Sugar 

Fruit/Veg. Canning 

Rubber Reclaining 

Automobiles 

Petrol Refining 

Iron + Steel 

Distilled Liquor 

SIC 

2063 

2033 

3031 

3711,13,14 

2911 

3312 

2085 

U.S. Value 

Added 

(io5 $) 

345 

2,542 

25 

36,292 

14,423 

15,332 

1,150 

U.S. Value 

of Shipments 

(10° $) 

1,181 

6,662 

42 

114,270 

91,689 

41,998 

2,296 

Ratio 

0.29 

0.38 

0.60 

0.32 

0.16 

0.36 

0.50 

Two-digit SIC 20-39 

Food 

Textiles 

Paper 

Chemical 

Petroleum 

Stone, Clay, Glass 

Steel 

Aluminum 

Other 

Total 

20 

22 

26 

28 

29 

32 

3312 

3315-17 

3334 

3353-55 

56,062 

16,104 

22,170 

56,720 

16,377 

19,129 

18,041 

4,220 

376,500 

585,165 

192,911 

40,550 

52,085 

118,153 

97,452 

35,477 

49,350 

13,668 

758,100 

1,358,000 

0.29 

0.40 

0.43 

0.48 

0.17 

0.54 

0.37 

0.31 

0.50 

0.43 

1/ 1977 Census of Manufacturers, April 1981, report MC 77 - SP - 1.