EC

/R Incorporated Providing Environmental Technical Support Since 1989

501 Eastowne Drive, Suite 250 y Chapel Hill, North Carolina 27514 

Telephone: (919)484-0222 y Fax: (919) 484-0122 

 

MEMORANDUM 

DATE: January 29, 2010 

SUBJECT: Control Costs for Existing Stationary CI RICE 

FROM: Bradley Nelson, EC/R, Inc. 

 

TO: Melanie King, EPA OAQPS/SPPD/ESG 

1.0 PURPOSE 

 The purpose of this memorandum is to present information on the costs of control 

technology options for reducing hazardous air pollutants (HAP) emissions from stationary 

compression ignition (CI) reciprocating internal combustion engines (RICE). These estimates 

will be used for the above-the-floor maximum achievable control technology (MACT) analysis 

and generally available control technology (GACT) regulatory alternatives for RICE at major 

and area sources. This memorandum presents the cost of retrofitting control technology on 

existing engines. 

2.0 INTRODUCTION 

 EPA has determined that diesel oxidation catalysts (DOC), catalyzed diesel particulate 

filters (CDPF), closed crankcase ventilation (CCV) and open crankcase ventilation (OCV) are 

applicable controls for HAP reduction from stationary CI RICE. To determine the capital and 

annual costs for these control technologies, equipment cost information was obtained from a cost 

study1

 performed by the California (CA) Air Resources Board (ARB) and cost data obtained 

from vendors. The annualized cost and capital cost equations were used to estimate the national 

impacts of controlling emissions from existing stationary CI engines. 

 

1

 Risk Reduction Plan to Reduce Particulate Matter Emissions from Diesel-Fueled Engines and Vehicles, California 

Environmental Protection Agency, Air Resources Board, Stationary Source Division, Mobile Source Control 

Division, October 2000. http://www.arb.ca.gov/diesel/documents/rrpapp.htm 
2

3.0 METHODOLOGY FOR DETERMINING COST EQUATIONS

 The following section describes the methodology used to derive the capital and annual 

costs for each of these control technologies. The capital and annual costs were determined using 

the costing methodology in the EPA Control Cost Manual.2

 A summary of the methodologies, 

equations, and assumptions used to estimate the capital and annual cost are described in the 

following sections. 

3.1 Total Capital Costs 

 The total capital cost includes the direct and indirect costs of purchasing and installing 

the control equipment. The direct cost includes the cost of purchasing the equipment and 

instrumentation, cost of shipping, and the cost of installing the control equipment. The indirect 

cost includes the costs for engineering, contractor fees, testing costs, and also includes costs for 

contingencies, such as additional modifications, or delays in startup. The total capital cost 

equation can be summarized as follows; 

Total Capital Cost (TCC) = Direct Costs (DC) + Indirect Costs (IC) 

The direct costs include the costs of purchasing and installing the control equipment and can be 

summarized using the following equation; 

DC = Purchased Equipment Cost (PEC) + Direct Installation Costs (DIC). 

A summary of the cost assumptions for PEC includes the following: 

- Control Device and Auxiliary Equipment (EC); 

- Instrumentation (10% of EC); 

- Sales Tax (3% of EC); 

- Freight (5% of EC); 

and can be summarized as: 

PEC = 118% EC. 

A summary of the cost assumptions for DIC includes the following: 

- Foundations and Supports (8% of PEC); 

- Handling and Erection (14% of PEC); 

- Electrical (4% of PEC); 

- Piping (2% of PEC); 

- Insulation for Ductwork (1% of PEC); 

 

2

 EPA Air Pollution Control Cost Manual, Sixth Edition, January 2002, EPA/452/B-02-001. 
3

- Painting (1% of PEC); 

and can be summarized as: 

DIC = 30% PEC = 0.3 PEC. 

Therefore, the direct costs can be simplified using the following equation: 

DC = PEC + 0.3 PEC = 1.3 PEC. 

The indirect costs include the costs of engineering and contractor fees and contingencies and can 

be summarized using the following equation: 

IC = Indirect Installation Costs (ICC) + Contingencies (C). 

A summary of the cost assumptions for ICC includes the following: 

- Engineering (10% of PEC); 

- Construction and Field Expenses (5% of PEC); 

- Contractor Fees (10% of PEC); 

- Startup (2% of PEC); 

- Performance Test (1% of PEC); 

and can be summarized as: 

IIC = 28% PEC = 0.28 PEC. 

A summary of the cost assumptions for C includes the following: 

- Equipment Redesign and Modifications; 

- Cost Escalations; 

- Delays in Startup; 

and is assumed to be: 

C = 3% PEC = 0.03 PEC. 

Therefore, the IC can be summarized using the following equation: 

IC = 0.28 PEC + 0.03 PEC = 0.31 PEC, 

and the simplified TCC equation can be expressed as: 
4

TCC = 1.3 PEC + 0.31 PEC = 1.61 PEC = 1.61 (1.18 EC) = 1.9 EC 

3.2 Total Annual Costs 

 The total annual cost includes the direct and indirect annual costs of operating and 

maintaining the control equipment. The direct annual cost includes the cost of the utilities, 

operating labor, and control device cleaning and maintenance. The indirect annual cost includes 

the overhead costs such as spare parts for the control equipment, administrative charges, and the 

capital recovery of the control technology. The total annual cost equation can be summarized as 

follows: 

Total Annual Cost (TAC) = Direct Annual Costs (DAC) + Indirect Annual Costs (IAC). 

A summary of the cost assumptions for DAC includes the following: 

- Utilities; 

- Operating Labor; 

- Maintenance; 

- Annual Compliance Test; 

- Catalyst Cleaning; 

- Catalyst Replacement; 

- Catalyst Disposal. 

A summary of the cost assumptions for DAC includes the following: 

- Overhead (60% of operating labor and maintenance costs); 

- Fuel Penalty; 

- Property Tax (1% of TCC); 

- Insurance (1% of TCC); 

- Administrative Charges (2% of TCC); 

- Capital Recovery = {I(1+I)n

/((1+I)n-1)*TCC} where I is the interest rate, and n is the 

equipment life. 

The DAC and fuel penalty costs will be estimated using information obtained for each of the 

control technologies. The other annual costs will be calculated using the assumed percentages. 
5

4.0 CONTROL COST EQUATIONS 

4.1 Diesel Oxidation Catalysts 

 The cost of retrofitting a DOC to an existing CI engine was estimated using cost data 

obtained from a diesel engine control technology study performed by the California ARB.3 The 

study provided equipment cost ranges for 40, 100, 275, 400, and 1,400 horsepower (HP) diesel 

engines. The average cost in the cost range for each of the engine sizes was used to develop the 

capital and annual cost for each of the engines. The capital cost was calculated using the EPA 

Control Cost methodology and includes the direct, indirect, and contingency costs of installation 

of the DOC. The total annual cost was also calculated using the EPA Control Cost methodology 

and includes the direct and indirect annual costs of operating and maintaining the DOC. 

Maintenance costs were estimated using the average of the cost range provided in the California 

ARB study. The study estimated the maintenance costs to range from $64 to $712 per year; $50 

to $100 for thermal cleaning and 1 hour labor ($78) once every other year to 4 times a year. For 

estimating the annual maintenance cost, the thermal cleaning was estimated to cost $153 ($75 for 

cleaning + $78 for 1 hour labor) and the thermal cleaning would occur twice a year for a total 

maintenance cost of $306 per year. An equipment life of 10 years and an interest rate of 7 

percent were used to estimate the indirect annual costs. The 10 year equipment life is consistent 

with the average life of control equipment. The fuel penalty associated with operating a DOC 

was assumed to be negligible. The capital and annual costs were adjusted to 2008 dollars using 

the Marshall & Swift Equipment Cost Index. 

 The calculated annual cost was plotted against the engine HP and the resulting graph 

showed a straight line relationship between the annual cost and engine HP. Therefore a linear 

regression was performed using the calculated annual cost and the engine HP to develop an 

equation that estimates annual costs when an engine HP is input into the equation. A summary 

of the calculated annual costs, graph, and linear regression analysis is presented in Appendix A 

of this memorandum. The annualized cost equation for retrofitting a DOC on a CI engine was 

estimated to be: 

DOC Annual Cost = $4.99*HP + $480 

where; 

HP = engine size in HP. 

The linear equation has a correlation coefficient of 0.9938, which shows the data fit the equation 

very closely. Therefore, this equation was used to estimate annualized cost for DOC for RICE at 

major and area sources. 

 

3

 Appendix IX, Risk Reduction Plan to Reduce Particulate Matter Emissions from Diesel-Fueled Engines and 

Vehicles, California Environmental Protection Agency, Air Resources Board, Stationary Source Division, Mobile 

Source Control Division, October 2000. http://www.arb.ca.gov/diesel/documents/rrpapp9.PDF 
6

 For capital cost, a graph of the calculated capital cost and the engine HP showed a 

straight line relationship between the two variables. Therefore a linear regression was performed 

using the calculated capital cost and the engine HP to develop an equation that estimates capital 

costs when an engine HP is input into the equation. A summary of the calculated capital costs, 

graph, and linear regression analysis is presented in Appendix A of this memorandum. The 

capital cost equation for retrofitting a DOC on a CI engine was estimated to be: 

DOC Capital Cost = $27.4*HP - $939 

where; 

HP = engine size in HP. 

The linear equation has a correlation coefficient of 0.9938, which shows the data fit the equation 

very closely. Therefore, this equation was used to estimate capital cost for DOC for RICE at 

major and area sources. 

4.2 Catalyzed Diesel Particulate Filters

 The CDPF is a control technology that reduces the emissions of HAP from CI engines. 

However, it is primarily installed on engines for the reduction of PM from the CI engine exhaust. 

The catalyst element in the CDPF is also effective in reducing the emissions of CO and volatile 

organic compounds (VOC). The filter system of the CDPF can be either active or passive. The 

passive CDPF uses heat from the engine to regenerate the filter media, whereas the active filter 

uses an electric heater or fuel burners to regenerate the filter media. The catalyzed coating in 

each of the two systems reduces emissions of CO, VOC, and HAP emissions. 

 The cost of retrofitting an active or passive CDPF to an existing CI engine was estimated 

using cost data obtained from a diesel engine control technology study performed by the 

California ARB.4

 The cost study did not distinguish equipment costs between the active and 

passive CDPF, therefore the equipment costs were assumed to be the same for both technologies. 

The study provided equipment cost ranges for 40, 100, 275, 400, and 1,400 HP diesel engines. 

The average cost in the cost range for each of these engine HPs and the EPA Control Cost 

methodology were used to develop the capital and annual cost for each of the engines. An 

equipment life of 10 years and an interest rate of 7 percent were used to estimate the indirect 

annual costs. The 10 year equipment life is consistent with the average life of control equipment. 

The fuel penalty associated with operating a CDPF was assumed to be negligible. The capital 

and annual costs were adjusted to 2008 dollars using the Marshall & Swift Equipment Cost 

Index. 

 The calculated annual cost for the CDPF was plotted against the engine HP and the 

resulting graph showed a straight line relationship between the annual cost and engine HP. 

 

4

 Appendix IX, Risk Reduction Plan to Reduce Particulate Matter Emissions from Diesel-Fueled Engines and 

Vehicles, California Environmental Protection Agency, Air Resources Board, Stationary Source Division, Mobile 

Source Control Division, October 2000. http://www.arb.ca.gov/diesel/documents/rrpapp9.PDF 
7

Therefore a linear regression was performed using the calculated annual cost and the engine HP 

to develop an equation that estimates annual costs when an engine HP is input into the equation. 

A summary of the calculated annual costs, graph, and linear regression analysis is presented in 

Appendix A of this memorandum. The annualized cost equation for retrofitting a CDPF on a CI 

engine was estimated to be: 

CDPF Annual Cost = $11.6*HP + 1414 

where; 

HP = engine size in HP. 

The linear equation has a correlation coefficient of 0.9897, which shows the data fit the equation 

very closely. Therefore, this equation was used to estimate annualized cost for retrofitting CDPF 

for CI at major and area sources. 

 For capital cost, a graph of the calculated capital cost and the engine HP showed a 

straight line relationship between the two variables. Therefore a linear regression was performed 

using the calculated capital cost and the engine HP to develop an equation that estimates capital 

costs when an engine HP is input into the equation. A summary of the calculated capital costs, 

graph, and linear regression analysis is presented in Appendix A of this memorandum. The 

capital cost equation for retrofitting a CDPF on a CI engine was estimated to be: 

CDPF Capital Cost = $63.4*HP + $5699 

where; 

HP = engine size in HP. 

The linear equation has a correlation coefficient of 0.9897, which shows the data fit the equation 

very closely. Therefore, this equation was used to estimate capital cost for CDPF for RICE at 

major and area sources. 

4.3 Open and Closed Crankcase Ventilation

 In diesel engines, the crankcase exhaust is either exhausted to the atmosphere (open 

crankcase) or routed to the air intake to be used as combustion air (closed crankcase). Crankcase 

ventilation systems use filtration or centrifugal force to remove oil mist and particulates from the 

crankcase exhaust stream in both open and closed crankcase diesel engines. The OCV system is 

installed on diesel engines with open crankcases, whereas the CCV system is installed on diesel 

engines with closed crankcases. The filtration or separator units used for both OCV and CCV 

are the same and have essentially the same cost. Therefore for this analysis, it is assumed that 

the capital and annual cost of OCV and CCV are the same. 
8

 The cost of retrofitting an OCV on an existing CI engine was estimated based on 

information obtained from a distributor of the OCV technology (see Appendix B). The 

distributor sells and installs three different models of the OCV system and provided information 

on the installation costs and maintenance required. These models were applied to engine sizes of 

100, 150, 200, 300, 500, 750, 1,000, 1,250, and 1,500 HP to estimate capital and annual costs 

using the EPA Control Cost methodology. An equipment life of 10 years and an interest rate of 

7 percent were used to estimate the indirect annual costs. The 10 year equipment life is 

consistent with the average life of control equipment. The calculated annual cost and engine size 

were graphed and a straight line relationship was observed. A linear regression analysis was 

done on the data set and the linear equation for annualized cost was; 

OCV Annual Cost = $0.065*HP + $254 

where; 

HP = engine size in HP. 

The linear equation has a correlation coefficient of 0.8154, which is due to the same annual cost 

being calculated for several different sized CI engines. This is due to the fact that the same 

model OCV can be retrofit on several different engine sizes, because the OCV are based on the 

flow rate of the crankcase exhaust. However, it is believed that the equation represents a 

representative average annual cost of retrofitting an OCV on a CI engine. 

 For capital cost, a graph of the calculated capital cost and the engine HP showed a 

straight line relationship between the two variables. Therefore a linear regression was performed 

using the calculated capital cost and the engine HP to develop an equation that estimates capital 

costs when an engine HP is input into the equation. A summary of the calculated capital costs, 

graph, and linear regression analysis is presented in Appendix A of this memorandum. The 

capital cost equation for retrofitting a OCV on a CI engine was estimated to be: 

OCV Capital Cost = $0.26*HP + $997 

where; 

HP = engine size in HP. 

The linear equation has a correlation coefficient of 0.7920, where again the capital cost was 

calculated to be the same for several different sized CI engines. However, it is believed that the 

cost equation provides a representative estimate of the average capital cost of retrofitting an 

OCV on a CI engine. 

 
9

5.0 SUMMARY 

The following table presents a summary of the costs for control devices to reduce HAP 

emissions from stationary CI engines. 

Table 1. Summary of Annual and Capital Costs Equations for CI HAP Controls 

HAP Control Device Annual Cost ($) Capital Cost ($) 

DOC $4.99*HP + $480 $27.4*HP - $939 

CDPF $11.6*HP + $1414 $63.4*HP + $5699 

OCV $0.065*HP + $254 $0.26*HP + $997 
10

Appendix A 

Control Cost Summary and Linear Regression Statistics
11

Diesel Oxidation Catalyst Cost

Data obtained from CARB Appendix IX, Diesel PM Control Technologies

Capital and Annual Cost Equations are from EPA Air Pollution Control Cost Manual, Sixth Edition (EPA/452/B-02-001)

Direct Costs Indirect Costs

Engine 

Size (HP)

Equipment 

Cost 

($2000)

Equipment 

Cost 

($2008) PEC DIC IIC C

Total 

Capital 

Cost

Regression 

Capital 

Cost

Direct 

Annual 

Cost

Indirect 

Annual 

Cost

Total 

Annual 

Cost

Regression 

Annual 

Cost

Annual 

Cost/Hp

40 $500 $665 $785 $236 $220 $24 $1,264 $156 $407 $475 $882 680 $22.05

100 $1,018 $1,355 $1,599 $480 $448 $48 $2,574 $1,798 $407 $714 $1,121 979 $11.21

275 $2,350 $3,128 $3,690 $1,107 $1,033 $111 $5,942 $6,587 $407 $1,328 $1,735 1,853 $6.31

400 $3,250 $4,325 $5,104 $1,531 $1,429 $153 $8,217 $10,008 $407 $1,743 $2,150 2,477 $5.38

1400 $15,000 $19,963 $23,556 $7,067 $6,596 $707 $37,925 $37,374 $407 $7,161 $7,568 7,468 $5.41

$10.07

Assumptions:

PEC = 118% of purchased equipment cost (PEC).

DIC = 30% of purchased equipment cost (PEC) and includes cost of installation.

IIC = 28% of purchased equipment cost (PEC).

C = 3% of purchased equipment cost (PEC).

Direct Annual Cost = 0, equipment certified by engine manufacturer.

Indirect Annual Cost = 60% of direct annual cost + 4% of total capital cost + capital recovery.

Capital Recovery assumes equipment life of 10 years and 7% interest rate. 0.1423775

SUMMARY OUTPUT - Annual Cost

Regression Statistics

Multiple R 0.99687955

R Square 0.99376884

Adjusted R S0.99169179

Standard Err 252.645997

Observations 5

ANOVA

df SS MS F Significance F

Regression 1 30539570.1 30539570.1 478.45167 0.00020915

Residual 3 191490 63830

Total 4 30731060.1

CoefficientsStandard Erro t Stat P-value Lower 95% Upper 95% Lower 95.0%Upper 95.0%

Intercept 480.351703 151.603431 3.16847514 0.05053998 -2.1180765 962.821482 -2.1180765 962.821482

Engine Size 4.99102525 0.2281764 21.8735381 0.00020915 4.2648661 5.7171844 4.2648661 5.7171844

SUMMARY OUTPUT - Capital Cost

Regression Statistics

Multiple R 0.99687955

R Square 0.99376884

Adjusted R S0.99169179

Standard Err 1385.29146

Observations 5

ANOVA

df SS MS F Significance F

Regression 1 918164273 918164273 478.45167 0.00020915

Residual 3 5757097.3 1919032.43

Total 4 923921370

CoefficientsStandard Erro t Stat P-value Lower 95% Upper 95% Lower 95.0%Upper 95.0%

Intercept -938.90096 831.26169 -1.129489 0.34084422 -3584.3467 1706.54473 -3584.3467 1706.54473

Engine Size 27.3664524 1.25112143 21.8735381 0.00020915 23.3848256 31.3480792 23.3848256 31.3480792

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

0 200 400 600 800 1000 1200 1400 1600

A

n

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C

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(

$

/

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Engine Size (HP)

Annual Cost for Retrofit of a Diesel Oxidation Catalyst

Total Annual Cost Regression Annual Cost

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

0 200 400 600 800 1000 1200 1400 1600

C

a

p

i

t

a

l

C

o

s

t

(

$

)

Engine Size (HP)

Capital Cost for Retrofit of a Diesel Oxidation Catalyst

Total Capital Cost Regression Capital Cost
12

Catalyzed Diesel Particulate Filter Cost

Data obtained from CARB Appendix IX, Diesel PM Control Technologies

Capital and Annual Cost Equations are from EPA Air Pollution Control Cost Manual, Sixth Edition (EPA/452/B-02-001)

Direct Costs Indirect Costs

Engine 

Size (HP)

Equipment 

Cost 

($2000)

Equipment 

Cost 

($2008) PEC DIC IIC C

Total 

Capital 

Cost

Regression 

Capital 

Cost

Direct 

Annual 

Cost

Indirect 

Annual 

Cost

Total 

Annual 

Cost

Regression 

Annual 

Cost

Annual 

Cost/Hp

40 $4,150 $5,523 $6,517 $1,955 $1,825 $196 $10,493 $8,237 $234 $2,054 $2,288 1,877 $57.20

100 $6,250 $8,318 $9,815 $2,945 $2,748 $294 $15,802 $12,043 $234 $3,022 $3,256 2,571 $32.56

275 $7,950 $10,580 $12,485 $3,745 $3,496 $375 $20,100 $23,146 $234 $3,806 $4,040 4,596 $14.69

400 $10,500 $13,974 $16,489 $4,947 $4,617 $495 $26,548 $31,076 $234 $4,982 $5,216 6,042 $13.04

1400 $38,000 $50,572 $59,675 $17,903 $16,709 $1,790 $96,078 $94,518 $234 $17,663 $17,897 17,612 $12.78

$26.06

Assumptions:

PEC = 118% of purchased equipment cost (PEC).

DIC = 30% of purchased equipment cost (PEC) and includes cost of installation.

IIC = 28% of purchased equipment cost (PEC).

C = 3% of purchased equipment cost (PEC).

Direct Annual Cost = 0, equipment certified by engine manufacturer.

Indirect Annual Cost = 60% of direct annual cost + 4% of total capital cost + capital recovery.

Capital Recovery assumes equipment life of 10 years and 7% interest rate. 0.1423775

SUMMARY OUTPUT - Annual Cost

Regression Statistics

Multiple R 0.99482924

R Square 0.98968521

Adjusted R S0.98624695

Standard Err 755.115259

Observations 5

ANOVA

df SS MS F Significance F

Regression 1 164128740 164128740 287.844638 0.00044599

Residual 3 1710597.16 570199.054

Total 4 165839337

CoefficientsStandard Erro t Stat P-value Lower 95% Upper 95%

Intercept 1413.79818 453.116477 3.12016501 0.0524648 -28.22068 2855.81703

Engine Size 11.57046 0.68197987 16.9659847 0.00044599 9.40009569 13.7408243

SUMMARY OUTPUT - Capital Cost

Regression Statistics

Multiple R 0.99482924

R Square 0.98968521

Adjusted R S0.98624695

Standard Err 4140.39697

Observations 5

ANOVA

df SS MS F Significance F

Regression 1 4934488108 4934488108 287.844638 0.00044599

Residual 3 51428661.1 17142887

Total 4 4985916769

CoefficientsStandard Erro t Stat P-value Lower 95% Upper 95%

Intercept 5699.15785 2484.49765 2.2938874 0.10557881 -2207.6225 13605.9382

Engine Size 63.4423645 3.73938592 16.9659847 0.00044599 51.5419696 75.3427594

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

0 200 400 600 800 1000 1200 1400 1600

A

n

n

u

a

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Engine Size (HP)

Annual Cost for Retrofit of a Catalyzed Diesel Particulate Filter

Total Annual Cost Regression Annual Cost

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

0 200 400 600 800 1000 1200 1400 1600

C

a

p

i

t

a

l

C

o

s

t

(

$

)

Engine Size (HP)

Capital Cost for Retrofit of a Catalyzed Diesel Particulate Filter

Total Capital Cost Regression Capital Cost
13

Crankcase Filtration Cost Equations

Data obtained from Telephone Communications with Mid-Atlantic Engine Supply Corporation

Capital and Annual Cost Equations are from EPA Air Pollution Control Cost Manual, Sixth Edition (EPA/452/B-02-001)

Direct Costs Indirect Costs

Engine 

Size (HP)

Equipment 

Cost 

($2008) PEC DIC IIC C

Total 

Capital 

Cost

Regression 

Capital 

Cost

Direct 

Annual 

Cost

Indirect 

Annual 

Cost

Total 

Annual 

Cost

Regression 

Annual 

Cost

Annual 

Cost/Hp

100 $500 $590 $177 $165 $18 $950 $1,022 $45 $200 $245 260 $2.45

150 $500 $590 $177 $165 $18 $950 $1,035 $45 $200 $245 264 $1.63

200 $600 $708 $212 $198 $21 $1,140 $1,048 $50 $238 $288 267 $1.44

300 $600 $708 $212 $198 $21 $1,140 $1,074 $50 $238 $288 273 $0.96

500 $600 $708 $212 $198 $21 $1,140 $1,125 $50 $238 $288 286 $0.58

750 $600 $708 $212 $198 $21 $1,140 $1,190 $50 $238 $288 302 $0.38

1000 $700 $826 $248 $231 $25 $1,330 $1,254 $60 $279 $339 319 $0.34

1250 $700 $826 $248 $231 $25 $1,330 $1,318 $60 $279 $339 335 $0.27

1500 $700 $826 $248 $231 $25 $1,330 $1,382 $60 $279 $339 351 $0.23

$0.92

Assumptions:

PEC = 118% of purchased equipment cost (PEC).

DIC = 30% of purchased equipment cost (PEC) and includes cost of installation.

IIC = 28% of purchased equipment cost (PEC).

C = 3% of purchased equipment cost (PEC).

Direct Annual Cost = 0, equipment certified by engine manufacturer.

Indirect Annual Cost = 60% of direct annual cost + 4% of total capital cost + capital recovery.

Capital Recovery assumes equipment life of 10 years and 7% interest rate. 0.1423775

SUMMARY OUTPUT - Annual Cost

Regression Statistics

Multiple R 0.90297617

R Square 0.81536597

Adjusted R S0.78898968

Standard Err 16.909021

Observations 9

ANOVA

df SS MS F Significance F

Regression 1 8838.44377 8838.44377 30.9128379 0.00085098

Residual 7 2001.40494 285.914991

Total 8 10839.8487

CoefficientsStandard Erro t Stat P-value Lower 95% Upper 95%

Intercept 253.982196 9.3261336 27.233386 2.3087E-08 231.929395 276.034998

Engine Size 0.06466166 0.01162994 5.55993147 0.00085098 0.03716122 0.09216209

SUMMARY OUTPUT - Capital Cost

Regression Statistics

Multiple R 0.88999704

R Square 0.79209473

Adjusted R S0.76239398

Standard Err 72.3930199

Observations 9

ANOVA

df SS MS F Significance F

Regression 1 139766.49 139766.49 26.6691805 0.00130337

Residual 7 36685.2453 5240.74934

Total 8 176451.735

CoefficientsStandard Erro t Stat P-value Lower 95% Upper 95%

Intercept 996.708476 39.928212 24.9625121 4.2234E-08 902.293257 1091.12369

Engine Size 0.25713456 0.04979155 5.16422119 0.00130337 0.13939626 0.37487286

$0

$50

$100

$150

$200

$250

$300

$350

$400

0 200 400 600 800 1000 1200 1400 1600

A

n

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(

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/

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Engine Size (HP)

Annual Cost for Retrofit of Open Crankcase Ventilation

Total Annual Cost Regression Annual Cost

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

0 200 400 600 800 1000 1200 1400 1600

C

a

p

i

t

a

l

C

o

s

t

(

$

)

Engine Size (HP)

Capital Cost for Retrofit of Open Crankcase Ventilation

Total Capital Cost Regression Capital Cost
14

Appendix B 

Contact Report 
15

 

CONTACT REPORT 

Date/Time Project Name Project Number 

November 20, 2009 

10:00pm RICE NESHAP MME-304 

EC/R Originator Contact Phone Number 

Bradley Nelson Chuck Cook – Mid-Atlantic Engine Supply (800) 257-8133 

General Subject 

The purpose of the telephone call was to discuss the feasibility of retrofitting existing 

stationary diesel engines with an open or closed crankcase ventilation system, and obtain 

equipment and installation costs for the retrofit. I spoke with General Manager of the 

company who stated that their company had installed numerous open and closed crankcase 

ventilation systems on both stationary and nonroad engines. He stated that the OCV and 

CCV systems are the same products with the only difference being the installation kit 

needed to retrofit the unit. The OCV system is installed in the open crankcase ventilation 

port, whereas the CCV is installed somewhere along the crankcase exhaust line before it 

reaches the intake manifold. He noted that engines that are enclosed in a housing or other 

shelter emit an oil mist from the crankcase that accumulates on the radiator and reduces 

the radiators effectiveness in cooling the engine. He noted that the Racor systems they sell 

reduce oil mist emissions by 95% using a filtration system. The equipment costs for the 

systems are; 

CCV4500 Series – Maximum Flow 10 CFM (< 160 HP diesel engines) $500 

CCV6000 Series – Maximum Flow 20 CFM (160-800 HP diesel engines) $600 

CCV8000 Series – Maximum Flow 40 CFM (> 800 HP diesel engines) $700 

The filter needs to be replaced every 750 hours and the replacement cost is $45 for the 

4500, $50 for the 6000, and $60 for the 8000. The contact also stated it takes roughly 1-2 

hours for installation, therefore at $80 per hour, installation would cost roughly $160. 

http://www.maesco.com/products/racor/r_ccv_intro/r_ccv_intro.html