1 

### Kelly, Shaheerah

From: Eric Albright [ealbright@environcorp.com]

Sent: Monday, September 23, 2013 11:10 AM

To: Kelly, Shaheerah

Cc: Rios, Gerardo; Christenson, Kara; Shane Young

Subject: RE: SPI-Anderson - response to Sep. 19 information request

Attachments: SPI-Anderson_GHG_BACT-cost_information.xlsx

Shaheerah:

The spreadsheet referenced in the responses is attached.

Please let me know you have any questions.

Eric

From: Eric Albright

Sent: Monday, September 23, 2013 10:47 AM

To: 'Kelly, Shaheerah'

Cc: Rios, Gerardo; Christenson, Kara; Shane Young

Subject: SPI-Anderson - response to Sep. 19 information request

Shaheerah:

Attached are responses to the request for additional information received from EPA Region 9 by email on September 19

concerning Sierra Pacific Industry’s cogeneration project (PSD Permit Number SAC 12

‐ 01).

Thanks, and, if you have any questions, please call me at the number below, or Shane Young of SPI at (530) 378

‐ 8356.

Eric

Eric Albright, PE | Senior Manager

ENVIRON International Corporation

19020 33 rd Avenue W, Suite 310 | Lynnwood, WA 98036

T: +1 425 412 1804 | F: +1 425 412 1840 | M: +1 206 909 0591

ealbright@environcorp.com

From: Kelly, Shaheerah [ mailto:Kelly.Shaheerah@epa.gov ]

Sent: Thursday, September 19, 2013 7:14 AM

To: Shane Young; Dave Brown; Eric Albright

Cc: Rios, Gerardo; Christenson, Kara

Subject: RE: PSD

Good morning,

Thanks again for the previous submittal sent to EPA on September 13. We need a bit more information to assist us in our

analysis. Below is the additional information needed.2 1. The approximate cost of a cost of a new lumber mill and cogeneration facility. This would be helpful for

comparison to the cost of the post

‐ combustion CCS system.

2. The GHG BACT analysis identifies the following control as an available method for reducing N2O emissions:

Addition of a N2O

‐ abating SCR system. Please provide cost information, including cost effectiveness data in

$/ton, for the assessment of this control option in Step 4 of the GHG analysis.

3. Please provide the actual cost calculations (e.g., spreadsheets) for the cost estimates previously provided for

post

‐ combustion CCS and catalytic destruction, as well as for the addition of a N2O

‐ abating SCR system.

I look forward to your response. Feel free to contact me for questions.

************************************

Shaheerah Kelly

U.S. Environmental Protec tion Agency, Region 9

Permits Office, Air Division

San Francisco, CA 94105

Phone: 415-947-4156

Fax: 415-947-3579

Email: kelly.shaheerah@epa.gov

From: Shane Young [ mailto:SWyoung@spi-ind.com ]

Sent: Wednesday, September 18, 2013 9:34 AM

To: Kelly, Shaheerah

Cc: 'Eric Albright ( ealbright@environcorp.com )'

Subject: PSD

Good morning Shaheerah,

I wanted to follow up on our conversation Monday regarding the responses to EPA’s questions pertaining to SPI

Anderson PSD permit. You had mentioned a couple of questions that you had and were going to send an e

‐ mail to Eric

and myself. How is this coming? As I mentioned, given the urgency of this permit anything you need please get it to us as

soon as possible so we can address and get back to you.

Regards

Shane Young

Sierra Pacific Industries

19758 Riverside Ave

Anderson Ca. 96007

P 530

‐ 378

‐ 8356

C 530

‐ 604

‐ 0025

swyoung@spi

‐ ind.com



### This message contains information that may be confid ential, privileged or othe rwise protected by law from

disclosure. It is intended for the excl usive use of the Addressee(s). Unless you are the addressee or authorized

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information contained within. If you have received this message in error, please c ontact the sender by electronic

reply to email@environcorp.com and immediately delete al l copies of the message.CO2PipelineData175.26 miles6 inches0N/A feetN/A metersTransportCostBreakdownCostType UnitsMaterials$Diameter(inches),Length(miles)$70,350+$2.01xLx(330.5xD2+686.7xD+26,960)15,210,392$Labor$Diameter(inches),Length(miles)$371,850+$2.01xLx(343.2xD2+2,074xD+170,013)68,998,850$Miscellaneous$Diameter(inches),Length(miles)$147,250+$1.55xLx(8,417xD+7,234) 15,831,408$RightofWay$Diameter(inches),Length(miles)$51,200+$1.28xLx(577xD+29,788) 7,510,266$CO2SurgeTank$PipelineControlSystem$FixedO&M$/mile/yearRef:Exhibit2PipelineCostBreakdownfromMarch2013NETLDocumentQualityGuidelinesforEnergySystemStudiesEstimatingCarbonDioxideTransportandStorageCostsDOE/NETL2013/1614I n (1+I)^n CRF0.07 20 3.869684 0.0943930.07 10 1.967151 0.1423780.07 5 1.402552 0.2438910.07 3 1.225043 0.3810520.07 2 1.1449 0.553092AnnualizedCaptialCostPipelineLengthPipelineDiameterNumberofInjectionWellsDepthofWellCostPipelineCaptialCostsOtherCapitalCosts$1,244,724$111,907TotalCapitalCost$108,907,547$10,280,102AnnualO&MCost$1,512,844TotalAnnualCost$11,792,946N2O-ABATING SCR COST ESTIMATE

FOR BIOMASS-FIRED COGENERATION UNIT

Sierra Pacific Industries Biomass-Fired Cogeneration Project

Anderson, California

CAPITAL COSTS

DIRECT COSTS COST Source

I. Purchased Equipment

a. Primary Equipment $174,250 FERCo (2010)/BASF (2013)

b. Instrumentation (0.1*a) $17,425 OAQPS

c. Sales tax (0.08*a) $13,940 OAQPS

d. Freight (0.05*a) $8,713 OAQPS

Total Purchases E q ui p ment Cost [TEC] $214,328 Calculation

II. Direct Installation Costs

a. Foundations and Supports (0.08*TEC) $17,146 OAQPS

b. Handling and Erection (0.14*TEC) $30,006 OAQPS

c. Electrical (0.04*TEC) $8,573 OAQPS

d. Piping (0.02*TEC) $4,287 OAQPS

e. Insulation for Ductwork (0.01*TEC) $2,143 OAQPS

f. Painting (0.01*TEC) $2,143 OAQPS

Total Direct Costs [TDC](I+II) $64,298 Calculation

INDIRECT COSTS

III. Indirect Installation

a. Engineering and Supervision (0.10*TEC) $21,433 OAQPS

b. Construction and Field Expenses (0.05*TEC) $10,716 OAQPS

c. Contractor Fee (0.10*TEC) $21,433 OAQPS

d. Contingencies (0.03*TEC) $6,430 OAQPS

IV. Other Indirect Costs

a. Startup and Testing (0.03*TEC) $6,430 OAQPS

b. Working Capital (30 days of direct operating costs [I-VII below/12]) $61,097 OAQPS

Total Indirect Costs [TIC](III+IV) $127,539 Calculation

Total Ca p ital Costs [TCC] (TEC+TDC+TIC) $406,164 Calculation

Total Annualized Ca p ital Costs [TACC] (20 y ears @ 7% interest) $38,339 Calculatio n

DIRECT AND INDIRECT ANNUALIZED COSTS

DIRECT OPERATING COSTS (DOC)

I. Labor for operations ($30/person-hour)(1 hr/shift)(3 shifts/day)(365 day/yr) $32,850 Engineering Estimate

II. Supervisory Labor (0.15* operations labor) $4,928 OAQPS

III. Maintenance Labor ($35/person-hour)(1 hr/shift)(3 shifts/day)(365 day/yr) $32,850 Engineering Estimate

IV. Replacement Parts

a. Catalyst (2 sets every year), $129,000 per year $258,000 Engineering Estimate

b. Other (100% of maintance labor) $32,850 OAQPS

V. Utility costs (Elect.) = (500kW)($0.05/kW-hr)(8,760 hr/yr) $219,000 Engineering Estimate

VI. Ammonia costs (anhydrous) =(21 lb/hr)*(8760 hr/yr)*($0.83/lb) $152,687 Engineering Estimate

VII. Lost revenue during downtime (3 per year @ $150,000 per shutdown) $450,000

INDIRECT OPERATING COSTS (IOC)

VIII. Overhead (0.6*O&M costs(I-III of DOC) $42,377 OAQPS

IX. Administration (0.02*TCC) $8,123 OAQPS

X. Insurance (0.01*TCC) $4,062 OAQPS

Total Direct and Indirect Annualized Costs [TDIAC] (DOC+IOC) $1,237,726 Calculation

TOTAL ANNUALIZED COSTS OXIDATION CATALYST [TAC O C ] (TACC+TDIAC) $1,276,065 Calculation

Ucontrolled N2O emissions as CO2e tons/year 5,884.3 Calculation

Emissions w/N2O-abating SCR as CO2e tons/year 588.4 BASF (2013)

Reduction from baseline Percent 90.0 Calculation

Total Emissions Reductio n tons/yea r 5,295.8 Calculatio n

Cost p er ton Conrolled $/ton 241 $ Calculatio n

OAQPS "EPA Air Pollution Cost Manual" Sixth Edition, January 2002, EPA/452/B-02-001

Office of Air Quaility Planning and Standards (OAQPS).COST PER TON OF GHG CONTROLLED

TO INSTALL A CATALYTIC DESTRUCTION SYSTEM

Sierra Pacific Industries Biomass-Fired Cogeneration Project

Anderson, California

CAPITAL COSTS

DIRECT COSTS COST Source

I. Purchased Equipment

a. Primary Equipment $1,006,000 PPC (2010)

b. Instrumentation (0.1*a) $100,600 OAQPS

c. Sales tax (0.08*a) $80,480 OAQPS

d. Freight (0.05*a) $50,300 OAQPS

Total Purchases E q ui p ment Cost [TEC] $1,237,380 Calculation

II. Direct Installation Costs

a. Foundations and Supports (0.08*TEC) $98,990 OAQPS

b. Handling and Erection (0.14*TEC) $173,233 OAQPS

c. Electrical (0.04*TEC) $49,495 OAQPS

d. Piping (0.02*TEC) $24,748 OAQPS

e. Insulation for Ductwork (0.01*TEC) $12,374 OAQPS

f. Painting (0.01*TEC) $12,374 OAQPS

Total Direct Costs [TDC](I+II) $371,214 Calculation

INDIRECT COSTS

III. Indirect Installation

a. Engineering and Supervision (0.10*TEC) $123,738 OAQPS

b. Construction and Field Expenses (0.05*TEC) $61,869 OAQPS

c. Contractor Fee (0.10*TEC) $123,738 OAQPS

d. Contingencies (0.03*TEC) $37,121 OAQPS

IV. Other Indirect Costs

a. Startup and Testing (0.03*TEC) $37,121 OAQPS

b. Working Capital (30 days of direct operating costs [I-VII below/12]) $99,512 OAQPS

Total Indirect Costs [TIC](III+IV) $483,100 Calculation

Total Ca p ital Costs [TCC] (TEC+TDC+TIC) $2,091,694 Calculation

Total Annualized Ca p ital Costs [TACC] (20 y ears @ 7% interest) $197,441 Calculatio n

DIRECT AND INDIRECT ANNUALIZED COSTS

DIRECT OPERATING COSTS (DOC)

I. Labor for operations ($30/person-hour)(0.25 hr/shift)(3 shifts/day)(365 day/yr) $8,213 Engineering Estimate

II. Supervisory Labor (0.15* operations labor) $1,232 OAQPS

III. Maintenance Labor ($35/person-hour)(1 hr/shift)(3 shifts/day)(365 day/yr) $32,850 Engineering Estimate

IV. Replacement Parts

a. Catalyst (2 sets every year), $450,000 per year $900,000 FERCo (2010)

b. Other (100% of maintance labor) $32,850 OAQPS

V. Utility costs (Elect.) = (500kW)($0.05/kW-hr)(8,760 hr/yr) $219,000 Engineering Estimate

(reheat fuel) = none $0

VI. Ammonia costs (none) $0

VII. Lost revenue during downtime (6 per year @ $150,000 per shutdown) $900,000 Engineering Estimate

INDIRECT OPERATING COSTS (IOC)

VIII. Overhead (0.6*O&M costs(I-III of DOC) $25,377 OAQPS

IX. Administration (0.02*TCC) $41,834 OAQPS

X. Insurance (0.01*TCC) $20,917 OAQPS

Total Direct and Indirect Annualized Costs [TDIAC] (DOC+IOC) $2,182,272 Calculation

TOTAL ANNUALIZED COSTS OXIDATION CATALYST [TAC O C ] (TACC+TDIAC) $2,379,713 Calculation

Ucontrolled GHG emissions as CO2e tons/year 433,000.0 Calculation

Emissions w/catalytic destruction as CO2e tons/year 426,000.0 Calculation

Reduction from baseline Percent 1.6 Calculation

Total Emissions Reductio n tons/yea r 7,000.0 Calculatio n

Cost p er ton Conrolled $/ton 340 $ Calculatio n

OAQPS "EPA Air Pollution Cost Manual" Sixth Edition, January 2002, EPA/452/B-02-001

Office of Air Quaility Planning and Standards (OAQPS).