### A.7

- 1

APPENDIX 7A: ENGINE ERING 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 Al ternative 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 avail able 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 alte rnative 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 presen t 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 NO x 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 Recircu lation

- Iron & Steel Mills

- Reheating 0.026 Low NOx Burner and SCR

- Coal

- Fired ICI Boilers 4.1

### A.7

- 2 NO x 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 NO x 

### 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 Bu rn 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 Re duction (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 A dhesives 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 NO x 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 Bu rner 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 NO x Control Measure Cost Selective Non

- Catalytic Reduction (SNCR)

- Miscellaneous 0.25 Selective Non

- Catalyti c 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 Regio ns 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 o f 201 1$)
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 contro l costs for post

California when using the alternative per ton cost assumptions for emissions reductions from unknown controls. T able 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 5,8 00 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.