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|"Bromberg, Kevin L." <kevin.bromberg@sba.gov>

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|RobertJ Wayland/RTP/USEPA/US@EPA, "Cortney Higgins"

<Cortney_Higgins@omb.eop.gov>, "Kymn, Christine J."

<Christine_J._Kymn@omb.eop.gov>, |

|Melanie King/RTP/USEPA/US@EPA, Michael Horowitz/DC/USEPA/US@EPA, Peter

Tsirigotis/RTP/USEPA/US@EPA |

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| Date: |

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|08/09/2010 06:08 PM

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|FW: Costs - Technical projects and reports

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Bob, as you requested, the cost breakdown for the RICE testing project.

I think EPA should know this background as it contemplates moving forward.

Kevin

From: Jim McCarthy [mailto:jamesmccarthy@comcast.net]

Sent: Monday, August 09, 2010 5:54 PM

To: Bromberg, Kevin L.

Cc: japanek@ameritech.net

Subject: Costs - Technical projects and reports

For activity since the Comment Period closed on June 3, 2009, costs on the

order of a million dollar are an appropriate ballpark estimate associated with

the technical work and data development efforts, and this cost estimate is low

if all factors are considered (e.g., commitment of in-house resources by

companies; fees for outside counsel that participated in the MACT floor

projects). The price tag would surely be well over a $million if those costs

are included.

This includes several projects in the last half of 2009 and early 2010, but

the bulk of the costs are associated with the MACT floor activity (testing and

data gathering). Some approximate estimates for “outside”

costs (e.g., from technical consulting support, test teams and excluding

internal costs and outside counsel costs) follow:

- Emissions / MACT floor testing in the summer and fall of

2010 along with data analysis and reporting: $600 - $750k (this

includes the 4SRB testing / reporting and data gathering /

reporting for lean burn engines)

- Control Cost report – data gathering and reporting: $75

to over $100k

- Method 323 field testing, historical test reports / data

investigation, and method validation: $150 - $200k

In addition, this does NOT include the significant level of effort in January

through June 3, 2009 for technical consulting services (i.e., once again this
excludes outside counsel and internal costs) to conduct background

investigations and develop extensive comments on the Proposed Rule (a

significant level of effort was required due to gross deficiencies in support

data (emissions, costs, etc.) and docket documentation. Those costs in the

first half of 2009 were on the order of $250k to $350k.

These are approximations but these estimates are in the ballpark and probably

“soft” in several cases.