A.7-1

APPENDIX 7A: ENGINEERING COST ANALYSIS

Overview

Chapter 7 describes the engineering cost analysis approach that EPA used in applying to 

demonstrate attainment of alternative ozone standard levels of 70, 65, and 60 ppb. This 

Appendix contains more detailed information about the control costs of the known control 

strategy analyses by control measure as well as sensitivity analyses for the fixed cost approach 

used to estimate costs for the unknown emissions controls.

A.7.1 Cost of Known Controls in Alternative Standards Analyses

This section presents costs of known controls for the alternative standards analyses. Costs 

are in terms of 2011 dollars and include values for all portions of the U.S. that were part of the 

analyses. However, because all available known controls for California were applied as part of 

the baseline analysis, no known controls were available for the alternative standards analyses in 

California so these costs do not include any known control costs for California. Costs for the 

alternative standard analyses are incremental to the baseline attainment demonstration. Tables 

A7-1 and A7-2 present the Costs for known controls by measure for the 70ppb alternative 

standard analysis for NOx and VOC respectively. Tables A7-3 and A7-4 present the Costs for 

known controls by measure for the 65ppb alternative standard analysis, and Tables A7-5 and A7-

6 present the costs for known controls by measure for the 60 ppb alternative standard analysis.

Table A7-1. Costs for Known NOx Controls in the 70 ppb Analysis (millions of 2011$)a

NOx Control Measure Cost

Adjust Air to Fuel Ratio and Ignition Retard - Gas Fired IC Engines 0.35

Biosolid Injection Technology - Cement Kilns 0.42

Ignition Retard - IC Engines 0.037

Low Emission Combustion - Gas Fired Lean Burn IC Engines 1

Low NOx Burner - Commercial/Institutional Boilers & IC Engines 6.6

Low NOx Burner - Industr/Commercial/Institutional (ICI) Boilers 1.4

Low NOx Burner - Industrial Combustion 0.37

Low NOx Burner - Lime Kilns 0.28

Low NOx Burner - Natural Gas-Fired Turbines 8.4

Low NOx Burner - Residential Furnaces 5.2

Low NOx Burner - Residential Water Heaters & Space Heaters 13

Low NOx Burner and Flue Gas Recirculation - Coke Oven/Blast Furnace 0.13

Low NOx Burner and Flue Gas Recirculation - Iron & Steel Mills - Reheating 0.026

Low NOx Burner and SCR - Coal-Fired ICI Boilers 4.1
A.7-2

NOx Control Measure Cost

Low NOx Burner and SCR - Industr/Commercial/Institutional Boilers 27

Natural Gas Reburn - Natural Gas-Fired EGU Boilers 0

Nonroad Diesel Retrofits & Engine Rebuilds - e.g., Construction Equipment 29

Non-Selective Catalytic Reduction (NSCR) - 4 Cycle Rich Burn IC Engines 10

OXY-Firing - Glass Manufacturing 20

Selective Catalytic Reduction (SCR) - Cement Kilns 16

Selective Catalytic Reduction (SCR) - Fluid Catalytic Cracking Units 4

Selective Catalytic Reduction (SCR) - IC Engines, Diesel 5.5

Selective Catalytic Reduction (SCR) - ICI Boilers 8.5

Selective Catalytic Reduction (SCR) - Industrial Incinerators 4

Selective Catalytic Reduction (SCR) - Petroleum Refinery Gas-Fired Process Heaters 3.1

Selective Catalytic Reduction (SCR) - Sludge Incineration 1.4

Selective Non-Catalytic Reduction (SNCR) - Comm./Inst. Incinerators 0.029

Selective Non-Catalytic Reduction (SNCR) - Industrial Incinerators 0.24

Selective Non-Catalytic Reduction (SNCR) - Utility Boilers 0.43

a All values are rounded to two significant figures.

Table A7-2. Costs for Known VOC Controls in the 70 ppb Analysis (millions of 2011$) a

VOC Control Measure Cost

Control of Fugitive Releases - Oil & Natural Gas Production 0.044

Control Technology Guidelines - Wood Furniture Surface Coating 1.9

Flare - Petroleum Flare 0.36

Gas Recovery - Municipal Solid Waste Landfill 0.27

Improved Work Practices, Material Substitution, Add-On Controls - Printing 0.4

Incineration - Other 0.84

Incineration - Surface Coating 200

Low-VOC Coatings and Add-On Controls - Surface Coating 0.04

LPV Relief Valve - Underground Tanks 7.1

Permanent Total Enclosure (PTE) - Surface Coating 3.5

RACT - Graphic Arts 20

Reduced Solvent Utilization - Surface Coating 2.7

Reformulation - Architectural Coatings 140

Reformulation - Industrial Adhesives 6.4

Reformulation-Process Modification - Automobile Refinishing 38

Reformulation-Process Modification - Cold Cleaning 3.3

Reformulation-Process Modification - Cutback Asphalt 0.02

Reformulation-Process Modification - Surface Coating 13

Solvent Recovery System - Printing/Publishing 0.038

Wastewater Treatment Controls- POTWs 0.73

a All values are rounded to two significant figures.
A.7-3

Table A7-3. Costs for Known NOx Controls in the 65 ppb Analysis (millions of 2011$) a

NOx Control Measure Cost

Adjust Air to Fuel Ratio and Ignition Retard - Gas Fired IC Engines 12

Biosolid Injection Technology - Cement Kilns 2.7

Ignition Retard - IC Engines 0.96

Low Emission Combustion - Gas Fired Lean Burn IC Engines 110

Low NOx Burner - Coal Cleaning 0.77

Low NOx Burner - Commercial/Institutional Boilers & IC Engines 40

Low NOx Burner - Industr/Commercial/Institutional (ICI) Boilers 41

Low NOx Burner - Industrial Combustion 3.3

Low NOx Burner - Lime Kilns 4.8

Low NOx Burner - Miscellaneous Sources 0.058

Low NOx Burner - Natural Gas-Fired Turbines 44

Low NOx Burner - Residential Furnaces 16

Low NOx Burner - Residential Water Heaters & Space Heaters 110

Low NOx Burner - Steel Foundry Furnaces 0.27

Low NOx Burner - Surface Coating Ovens 0.092

Low NOx Burner and Flue Gas Recirculation - Coke Oven/Blast Furnace 2.2

Low NOx Burner and Flue Gas Recirculation - Iron & Steel Mills - Reheating 0.55

Low NOx Burner and Over Fire Air - Utility Boilers 1.6

Low NOx Burner and SCR - Coal-Fired ICI Boilers 87

Low NOx Burner and SCR - Industr/Commercial/Institutional Boilers 210

Low NOx Burner and SNCR - Industr/Commercial/Institutional Boilers 3.6

Natural Gas Reburn - Natural Gas-Fired EGU Boilers 1.2

Nonroad Diesel Retrofits & Engine Rebuilds - e.g., Construction Equipment 58

Non-Selective Catalytic Reduction (NSCR) - 4 Cycle Rich Burn IC Engines 170

Non-Selective Catalytic Reduction (NSCR) - Nitric Acid Mfg 1.4

OXY-Firing - Glass Manufacturing 140

SCR and Flue Gas Recirculation - Fluid Catalytic Cracking Units 0.91

SCR and Flue Gas Recirculation - ICI Boilers 4.7

SCR and Flue Gas Recirculation - Process Heaters 2.9

Selective Catalytic Reduction (SCR) - Ammonia Mfg 15

Selective Catalytic Reduction (SCR) - Cement Kilns 230

Selective Catalytic Reduction (SCR) - Fluid Catalytic Cracking Units 19

Selective Catalytic Reduction (SCR) - IC Engines, Diesel 24

Selective Catalytic Reduction (SCR) - ICI Boilers 76

Selective Catalytic Reduction (SCR) - Industrial Combustion 24

Selective Catalytic Reduction (SCR) - Industrial Incinerators 5.6

Selective Catalytic Reduction (SCR) - Iron Ore Processing 1.3

Selective Catalytic Reduction (SCR) - Petroleum Refinery Gas-Fired Process Heaters 61

Selective Catalytic Reduction (SCR) - Process Heaters 0.26

Selective Catalytic Reduction (SCR) - Sludge Incineration 39

Selective Catalytic Reduction (SCR) - Space Heaters 1.3

Selective Catalytic Reduction (SCR) - Utility Boilers 1,700

Selective Non-Catalytic Reduction (SNCR) - Coke Mfg 6.4

Selective Non-Catalytic Reduction (SNCR) - Comm./Inst. Incinerators 2.9

Selective Non-Catalytic Reduction (SNCR) - ICI Boilers 0.75

Selective Non-Catalytic Reduction (SNCR) - Industrial Combustion 0.065

Selective Non-Catalytic Reduction (SNCR) - Industrial Incinerators 2.8
A.7-4

NOx Control Measure Cost

Selective Non-Catalytic Reduction (SNCR) - Miscellaneous 0.25

Selective Non-Catalytic Reduction (SNCR) - Municipal Waste Combustors 2.5

Selective Non-Catalytic Reduction (SNCR) - Utility Boilers 0.46

Ultra-Low NOx Burner - Process Heaters 1.8

a All values are rounded to two significant figures.

Table A7-4. Costs for Known VOC Controls in the 65 ppb Analysis (millions of 2011$) a

VOC Control Measure Cost

Control of Fugitive Releases - Oil & Natural Gas Production 0.083

Control Technology Guidelines - Wood Furniture Surface Coating 3

Flare - Petroleum Flare 0.36

Gas Recovery - Municipal Solid Waste Landfill 0.37

Improved Work Practices, Material Substitution, Add-On Controls - Printing 1.4

Incineration - Other 0.91

Incineration - Surface Coating 370

Low VOC Adhesives and Improved Application Methods - Industrial Adhesives 0.06

Low-VOC Coatings and Add-On Controls - Surface Coating 0.57

LPV Relief Valve - Underground Tanks 13

Permanent Total Enclosure (PTE) - Surface Coating 17

Petroleum and Solvent Evaporation - Surface Coating Operations 0.037

RACT - Graphic Arts 38

Reduced Solvent Utilization - Surface Coating 3.1

Reformulation - Architectural Coatings 300

Reformulation - Industrial Adhesives 6.1

Reformulation-Process Modification - Automobile Refinishing 62

Reformulation-Process Modification - Cutback Asphalt 0.075

Reformulation-Process Modification - Surface Coating 24

Solvent Recovery System - Printing/Publishing 1.3

Solvent Substitution and Improved Application Methods - Fiberglass Boat Mfg 0.059

Wastewater Treatment Controls- POTWs 0.82

a All values are rounded to two significant figures.
A.7-5

Table A7-5. Costs for Known NOx Controls in the 60 ppb Analysis (millions of 2011$) a

NOx Control Measure Cost

Adjust Air to Fuel Ratio and Ignition Retard - Gas Fired IC Engines 12

Biosolid Injection Technology - Cement Kilns 2.7

Ignition Retard - IC Engines 1

Low Emission Combustion - Gas Fired Lean Burn IC Engines 120

Low NOx Burner - Coal Cleaning 0.77

Low NOx Burner - Commercial/Institutional Boilers & IC Engines 40

Low NOx Burner - Industr/Commercial/Institutional (ICI) Boilers 42

Low NOx Burner - Industrial Combustion 3.3

Low NOx Burner - Lime Kilns 4.8

Low NOx Burner - Miscellaneous Sources 0.077

Low NOx Burner - Natural Gas-Fired Turbines 47

Low NOx Burner - Residential Furnaces 17

Low NOx Burner - Residential Water Heaters & Space Heaters 120

Low NOx Burner - Steel Foundry Furnaces 0.27

Low NOx Burner - Surface Coating Ovens 0.092

Low NOx Burner and Flue Gas Recirculation - Coke Oven/Blast Furnace 2.2

Low NOx Burner and Flue Gas Recirculation - Iron & Steel Mills - Reheating 0.55

Low NOx Burner and Over Fire Air - Utility Boilers 1.6

Low NOx Burner and SCR - Coal-Fired ICI Boilers 87

Low NOx Burner and SCR - Industr/Commercial/Institutional Boilers 210

Low NOx Burner and SNCR - Industr/Commercial/Institutional Boilers 3.6

Natural Gas Reburn - Natural Gas-Fired EGU Boilers 1.3

Nonroad Diesel Retrofits & Engine Rebuilds - e.g., Construction Equipment 58

Non-Selective Catalytic Reduction (NSCR) - 4 Cycle Rich Burn IC Engines 170

Non-Selective Catalytic Reduction (NSCR) - Nitric Acid Mfg 1.4

OXY-Firing - Glass Manufacturing 140

SCR and Flue Gas Recirculation - Fluid Catalytic Cracking Units 0.91

SCR and Flue Gas Recirculation - ICI Boilers 4.7

SCR and Flue Gas Recirculation - Process Heaters 2.9

Selective Catalytic Reduction (SCR) - Ammonia Mfg 15

Selective Catalytic Reduction (SCR) - Cement Kilns 230

Selective Catalytic Reduction (SCR) - Fluid Catalytic Cracking Units 19

Selective Catalytic Reduction (SCR) - IC Engines, Diesel 26

Selective Catalytic Reduction (SCR) - ICI Boilers 76

Selective Catalytic Reduction (SCR) - Industrial Combustion 24

Selective Catalytic Reduction (SCR) - Industrial Incinerators 5.6

Selective Catalytic Reduction (SCR) - Iron Ore Processing 1.3

Selective Catalytic Reduction (SCR) - Petroleum Refinery Gas-Fired Process Heaters 61

Selective Catalytic Reduction (SCR) - Process Heaters 0.26

Selective Catalytic Reduction (SCR) - Sludge Incineration 39

Selective Catalytic Reduction (SCR) - Space Heaters 1.5

Selective Catalytic Reduction (SCR) - Utility Boilers 1,900

Selective Non-Catalytic Reduction (SNCR) - Coke Mfg 6.4

Selective Non-Catalytic Reduction (SNCR) - Comm./Inst. Incinerators 2.9

Selective Non-Catalytic Reduction (SNCR) - ICI Boilers 0.75

Selective Non-Catalytic Reduction (SNCR) - Industrial Combustion 0.087

Selective Non-Catalytic Reduction (SNCR) - Industrial Incinerators 2.8
A.7-6

NOx Control Measure Cost

Selective Non-Catalytic Reduction (SNCR) - Miscellaneous 0.25

Selective Non-Catalytic Reduction (SNCR) - Municipal Waste Combustors 2.5

Selective Non-Catalytic Reduction (SNCR) - Utility Boilers 0.46

Ultra-Low NOx Burner - Process Heaters 1.8

a All values are rounded to two significant figures.

Table A7-6. Costs for Known VOC Controls in the 60 ppb Analysis (millions of 2011$) a

VOC Control Measure Cost

Control of Fugitive Releases - Oil & Natural Gas Production 0.089

Control Technology Guidelines - Wood Furniture Surface Coating 3.3

Flare - Petroleum Flare 0.36

Gas Recovery - Municipal Solid Waste Landfill 0.41

Improved Work Practices, Material Substitution, Add-On Controls - Printing 1.4

Incineration - Other 0.91

Incineration - Surface Coating 370

Low VOC Adhesives and Improved Application Methods - Industrial Adhesives 0.064

Low-VOC Coatings and Add-On Controls - Surface Coating 0.97

LPV Relief Valve - Underground Tanks 13

Permanent Total Enclosure (PTE) - Surface Coating 28

Petroleum and Solvent Evaporation - Surface Coating Operations 0.071

RACT - Graphic Arts 40

Reduced Solvent Utilization - Surface Coating 3.2

Reformulation - Architectural Coatings 310

Reformulation - Industrial Adhesives 6.1

Reformulation-Process Modification - Automobile Refinishing 66

Reformulation-Process Modification - Cutback Asphalt 0.087

Reformulation-Process Modification - Surface Coating 25

Solvent Recovery System - Printing/Publishing 1.3

Solvent Substitution and Improved Application Methods - Fiberglass Boat Mfg 0.059

Wastewater Treatment Controls- POTWs 0.82

a All values are rounded to two significant figures.

A.7.2 Alternative Estimates of Costs Associated with Emissions Reductions from Known 

Controls

This section presents alternative estimates of the extrapolated control costs using 

alternative fixed cost per ton of emission reductions from unknown controls. The alternative 

values used are $10,000/ton and $20,000, as well as the $15,000/ton value used as the primary 

estimate in the RIA. Table A7-7 presents the alternative estimates for the East and West Regions 

in 2025, without California, while Table A7-8 presents the estimates for post-2025 California. 
A.7-7

Table A7-7. Extrapolated Control Costs in 2025 by Alternative Standard for 2025 U.S., 

except California, using Alternative Fixed Cost Assumptions (millions of 2011$)

Alternative Level Geographic Area Extrapolated Cost

$10,000/ton $15,000/ton $20,000/ton

70 ppb

East 1,500 2,300 3,100

West - - -

65 ppb East 7,500 11,000 15,000

West -

60 ppb East 19,000 28,000 38,000

West 3,500 5,200 7,000

a All values are rounded to two significant figures.

Table A7-8. Extrapolated Control Costs in 2025 by Alternative Standard for Post-2025 

California, using Alternative Fixed Cost Assumptions (millions of 2011$)

Alternative Level Geographic Area Extrapolated Cost

$10,000/ton $15,000/ton $20,000/ton

70 ppb California 530 800 1,100

65 ppb California 1,000 1,600 2,100

60 ppb California 1,400 2,200 2,900

a All values are rounded to two significant figures.

Note, by definition, the lower per ton estimate is 50% less than the upper end estimate, and the 

range between the extrapolated cost bounds becomes larger as the alternative levels become 

more stringent and really more heavily on unknown controls. 

Tables A7-9 presents the estimates of the total control costs for 2025 East and West, 

without California, when using the alternative per ton cost assumptions for emissions reductions 

from unknown controls. Tables A7-10 presents the estimates of the total control costs for postCalifornia when using the alternative per ton cost assumptions for emissions reductions from 

unknown controls.

Table A7-9. Summary of Total Control Costs (Known and Extrapolated) by Alternative 

Level for 2025 - U.S. using Alternative Cost Assumption for Extrapolated Costs, 

except California (millions of 2011$)a

Alternative Level Geographic Area

Total Control Costs (Known and Extrapolated)

Extrapolated 

Cost = 

$10,000/ton

Extrapolated 

Cost = 

$15,000/ton

Extrapolated 

Cost = 

$20,000/ton

70 ppb

East 3,100 3,900 4,700

West - - -

65 ppb East 11,000 15,000 19,000
A.7-8

Alternative Level Geographic Area

Total Control Costs (Known and Extrapolated)

Extrapolated 

Cost = 

$10,000/ton

Extrapolated 

Cost = 

$15,000/ton

Extrapolated 

Cost = 

$20,000/ton

West 400 400 400

60 ppb

East 23,000 33,000 42,000

West 4,100 5,800 7,600

a All values are rounded to two significant figures.

Table A7-10. Summary of Total Control Costs (Known and Extrapolated) by Alternative 

Level for 2025 - U.S. using Alternative Cost Assumption for Extrapolated Costs, 

except California (millions of 2011$)a

Alternative Level Geographic Area

Total Control Cost

Extrapolated 

Cost = 

$10,000/ton

Extrapolated 

Cost = 

$15,000/ton

Extrapolated 

Cost = 

$20,000/ton

70 ppb California 530 800 1,100

65 ppb California 1,000 1,600 2,100

60 ppb California 1,400 2,200 2,900

a All values are rounded to two significant figures.