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# RCRA Box 1883 Prepped by Ollie Stewart



### Document

Number: 

# 105 ) ll-B-26 7
Docket Number, 

# A-90-1 9

Printed 12/3/200810:42:17

AM Sheet 105of 171

### P. 2 

# A-90-1 9 

# R ll-B-26 7 TO : Mr . Lesli e B . Evan s FROM : AndyBlackard , Radia n DATE : Septembe r 14 , 199 0 EP AAI RDOCKE T SUBJECT : Calculatio n o f 50t han d 90t hPercentil e HONContro l Cost s fo r CEI S
Th e purpos e o f thi s mem o i s t o describ e ou r propose d approac hfo r determinin g th e 50t han d 90t hcontro l cos t percentile s t o includ e in th e HON result s dat a file s whic har e t o b e delivere d t o CEI S fo r economi c analysis
. W e wil l describ e th e content s o f th e cos t dat a file s an d th e methodolog ywhic hw e w l l us e t o prepar e them . Th e Februar y26 , 199 0 mem o fromJoh n Robso n (CEIS ) t o Bo bRosenstee l (CPB ) liste d fiv e categorie s o f informatio n tha t wil l nee d t o b e determine d fo r eac h product-proces s an

d delivere d in a dat a se t t o b e use d fo r economi c analysis
. Thes e ar e summarize d a s follows : 1 ) 198 9 annua l productio n i n million s o f kilograms , 2 ) Produc t pric e (S/kg ) and references , 3 ) Fractio n o f productio n subjec t t o zer o contro l costs , 4 ) Annua l contro l cos t (S/kg ) summe d fo r al l fiv e emissio n sourc e type s

- tota l annua l cos t

- cos t o f 50t hpercentil e kilogra mo f productio n * cos t o f 90t hpercentil e kilogra mo f productio n 5 ) Capita l contro l cos t ($/kg ) summe d fo r al l fiv e emissio n sourc e type s

- tota l capita l cos t

- cos t o f 50t hpercentil e kilogra mo f productio n

- cos t o f 90t hpercentil e kilogra mo f productio n

In additio n t o providin g th e integrate d zero-cos t fractio n and integrate d contro l costs , w e recommen d breakin g dow n th e zero-cos t fractio n and contro l cost s b yemissio n sourc e type . Sinc e th e integrate d zero-cos t fractio n (tha t fractio n o f productio n unaffecte d b yan yo f th e fiv e emissio n sourc e typ e regulations ) wil l b e differen t fro mth e individua l emissio n sourc e typ e zero cos t fraction s (th e fractio n unaffecte d b ya singl e emissio n sourc e typ e regulation) , th e integrate d 50th/90t hpercentil e contro l cost s wil l no t b e th e su mo f th e emissio n sourc e typ e contro l costs .P. 3

Becaus e o f thi s difference , w e recommendthe additiona l calculatio no f emissio nsourc e typ e zero-cos t fraction s an dcontro l costs . Thi s additiona l informatio nwil l providedinsigh t int o the cos t impac t o f the regulation s whic h may shap e th e directio no f th e overal l economi c analysis . Also , i t canbe gaine d wit ha smal l additiona l effor t sinc e th e program logi c neede dt o calculat e integrate dan

dindividua l cost s i s nearl y identical .
Th e cost s tha t wil l be presente dar e specifi c t o a product-proces s -- whic hinclude s al l o f th e chemical s whic har e produce db y a give nproduct process . Sinc e th e EPA need s t o allocat e th e product-proces s cost s t o individua l chemicals . A

simpl e rati o o f cost s accordin gt o stoichiometri c relationship s may b e use dt o disaggregat e cost s t o individua l chemicals . However , w e recommend establishin ga minima l leve l o f productio nfo r co-product s fo r whic hcost s wil l b e estimated . Below

thi s leve l (e.g . les s tha n25 % o f produc t capacity) , i t can b e assume dtha t additiona l contro l cost s attributabl e t o th e co-produc t b y thi s product-proces s ar e minimal . Th e exceptio nwoul db e whe na chemica l canonl y be produce da s a co-produc t o f a product-proces s a t a yiel dbelow thi s minimu

m level . I t shoul dthe nb e include dt o avoi dignorin gth e consideratio no f thi s chemica l inth e economi c analysis .
Inth e followin gparagraph s w e discus s how Radia npropose s t o perform the necessar y

calculation s t o prepar e th e two dat a set s fo r us e b y CEIS . Th e value s fo r al l fiv e sourc e type s combine dwil l b e referredt o a s th e 'integrate d values' . Th e value s fo r th e dat a se t whic hi s broke ndow nb y emissio nsourc e typ e wil l b e referre dt o a s th e 'source-typ e specifi c values' . Th e 198 9 annua l productio nfo r eac hproduct-proces s wil l b e calculate db y summin gth e productio nacros s al l facilitie s inth e databas e tha t hav e entrie s fo r tha t product-process . Inorde r t o provid e a gaug e fo r th e representativenes s o f thi s estimate , w e recommen dincludin gth e tota l U.S . productio no f th e produc t (obtaine dfro

m a separat e sourc e o f Information ) inthi s dat a se t fo r side-by sid e comparison . Thi s numbe r wil l b e th e same fo r bot hdat a sets . Th e produc t pric e informatio nwil l b e take ndirectl y fro m th e HON database . Thi s numbe r wil l b e th e same fo r bot hdat a sets .P. 4

Th e zero-cos t fractio n (tha t fractio n subjec t t o zer o contro l cost ) wil l b e calculate d fo r th e integrate d dat a se t b ysummin g productio n fo r thos e facilitie s wher e th e contro l cos t fo r al l o f th e fiv e emissio n sourc e type s i s equa l t o zero . The n th e zero-cos t fractio n fo r eac hemissio n sourc e typ e wil l b e calculate d individuall yand store d i n th e source-typ e specifi c dat a set . Th e integrate d tota l annua l and capita l cost s wil l b e calculate d b ysummin g thes e tw o field s i n th e HONdatabas e mai n result s fil e fo r al l sourc e types . Th e source-typ e specifi c cos t value s ar e obtaine d directl yfro mth e mai n result s file
. Th e metho d propose d fo r th e calculatio n o f th e 50t hand 90t hpercentile s o f contro l cos t i s illustrate d below . First , dat a fo r al l o f th e facilitie s whic hus e thi s product-process , thi s 5 facilitie s i n thi s example , ar e extracte d int o a separat e workin g fil e an d place d i n ascendin g orde r (rank-ordered ) accordin g t o contro l cos t pe r kilogra m o f productio n fo r eac hfacilit ytha t use s thi s produc t process .

Facilit y AB C Inc . DE F Inc . GU I Inc . JK L Inc . MN O Inc . Productio n 3 0 

### 4 2 

### 8 3 0 2 0 (kg ) Rank-ordere d

Contro l Cos t 

### (SAg ) $ 0 ( Z 

### $1 $ 2 $ 5 $ 7 (Zero-Cos t Facility )

Th e tota l productio n fo r facilitie s wit hnon-zer o contro l cost s 1 s calculate d t o be 10 0 k

g(excludingth e facilitie s wit hzer o cos t o f controls) . Therefore , th e cos t o f contro l fo r th e 50t hpercentil e o f productio n 1 s th e contro l cos t associate d wit hth e 50t hkilogra m o f productio n( 0. 5 * 100) . Likewise , th e cos t o f contro l fo r th e 90t hpercentil e o f productio n1 s th e contro l cos t associate d wit hth e 90t hkilogra m o f productio n( 0. 9 * 100) . Figur e 1 show s tha t th e cos t o f the 50t hpercentil e o f productio n1s , 1 n thi s case , onth e borderlin e betwee n$2/kgan d$5/kg . Th e large r valu e wil l be usedfo r th e sak e o f consistency , therefore , the 50t hpercentil e o f contro l cos t i s $5/kg . Th e contro l cos t o f the 90t hpercentil e o f productio n1 s $7/kg .LP. 5



### contro l cos t 5Qt n& got nc i

Exclualr q Zmv-Cumi. Pacllltl M



### 3

a I^MMWili l



### FIGUR E 1 . Rank-OrderedContro l Cost sP. 6

CJ

Th e compute r algorith mfo r determinin g th e integrate d 50t hpercentil e (P50 ) follows . Th e algorith mfo r th e 90t hpercentil e i s identica l excep t P9 0 i s use d instea d o f P50 . Th e emissio n sourc e typ e specifi c calculatio n differ s onl y in th e us e o f contro l cost s fo r tha t emission s sourc e alon e rathe r tha n th e su m o f al l fiv e emission s sources . 1 ) Prepar e a rank-ordere d wor k fil e i n ascendin g orde r o f contro l cos t pe r kilogramo f production
. 2 ) Calculat e th e tota l productio n (kg ) o f al l facilitie s whos e contro l cos t ar e non-zero . 3 ) Stor e th e abov e tota l i n a wor k variabl e (TOTAL) . Stor e th e 50t h percentil e o f thi s tota l (P5 0 - TOTAL * 0.5) . Stor e TOTAL t o a wor k variabl e TEST . 4 ) G o t o the n end o f th e wor k file
. 5 ) Subtrac t productio n o f curren t facilit y(fromfile. ) fromTEST . 6 ) I f th e resul t i s les s tha n o r equa l t o P50 , the n th e 50t hpercentil e cos t (C50 ) i s th e contro l cos t o f th e curren t facility , otherwise , ski p t o th e previou s recor d and g o bac k t o 5 . Exampl e ; 1 ) a s abov e 2 ) TOTAL - 4 2 + 8 + 3 0 + 2 0 - 100kg (zero-cos t 30k g omitted ) TES T - TOTA L 3 ) P5 0 - TOTAL * 0. 5 - 50kg 4 ) a s abov e 5 ) TES T - 10 0 - 2 0 - 80k g 6 ) 8 0 I S NO T < - P50 , s o ski p t o prio r facilit yan d g o bac k t o 5 5b ) TES T - 8 0 - 3 0 - 50k g 6b ) 5 0 I S < - P50 , therefore , th e contro l cos t o f th e 50t hpercentil e o f productio n 1 s equa l t o the value fo r JK L Inc. , $5/k g production .. ' P. 7



### Th e structure s fo r th e 'integrated ' an dth e 'emissionsourc e typ e specific ' result s file s ar e a s follows : Filename : CEISICST.DB F Fil e description : CEI S Integrate dCos t Oat a fil e FL DFIEL DNAME TYP E WIDT HDE C FIEL DDESCRIPTION 1 PRODUCT_ P Cha r 2 CAP Nu

m 3 AVG_PRIC E Nu

m 4 SRC_PRIC E Cha r 5 PCT_0_COS T Nu

m 6 TOT_ANN_5 0 Nu

m 7 TOT_ANN_9 0 Nu

m 3 CAPITAL_5 0 Nu

m 9 CAPITAL 9 0 Nu

m 1 0 Produc t Proces s Cod e (*key* ) 8 2 Productio ninbas e yea r 198 9 (kg ) 8 2 Averag e pric e o f produc t (S/kg ) 2 Referenc e Numbe r fo r Sourc e o f Pric e Inf o 5 0 % thrupu t o f prodfo r whic hCtr l cst- 0 8 2 Ann . Cos t o f 50t hpercentil e k g 8 2 Ann . Cos t o f 90t hpercentil e k g 8 2 Capita l Cos t o f 50t hpercentil e k g 8 2 Capita l Cos t o f 90t hpercentil e k g Filename : Fil e description : CEISSCST.DB F

CEI S Source-typ e Specifi c Cos t Dat a fil e FL DFIEL DNAME TYP E WIDT HDE C FIEL DDESCRIPTION 1 PRODUC T P Cha r 2 SOURC E TY P Cha r 3 CNTR L OP T Cha r 4 CAP Nu

m 5 AV GPRIC E Nu

m 5 SRC PRIC E Cha r 7 PC T 0 COS T Nu

m 3 TO T AN N 5 0 Nu m 9 TO T AN N 9 0 Nu m 1 0 CAPITAL 5 0 Nu

m 1 1 CAPITAL 9 0 Nu

m 1 2 CTR L DE

V Cha r 1 3 EMIS S RE DNu

m 1 0 2 1 0 8 8 2 5 8 8 8 8 2 0 5 2 2 0 2 2 2 2 0 E Produc t Proces s Cod e (*key* ) Sourc e Type : (EL|PV|ST|TR|WW ) Regulator y

Alternativ e Productio ninbas e yea r 198 9 (kg ) Averag e pric e o f produc t (S/kg ) Referenc e Numbe r fo r Sourc e o f Pric e Inf o % thrupu t o f prodfo r whic hCtr l cst- 0 Ann . Cos t o f 50t hpercentil e k g Ann . Cos t o f 90t hpercentil e k g Capita l Cos t o f 50t hpercentil e k g Capita l Cos t o f 90t hpercentil e k g Principa l Ctr l devic e onwhic hcosting1 s based Expecte demissio nreductio nfro m install/o pdevic e
We estimat e tha t 12 0 hours , includingmanagement , wil l be require dfo r codin gth e softwar e require dt o extrac t workin gsubset s fro m th e HON database , rank-orde r thes e workin gsubsets , an dcalculat e bot hIntegrate dan dsource-typ e specifi c 50t han

d90t hpercentil e contro l cost s value s fo r al l product-processes . Thi s Include s Q

A o f th e dat a an

ddeliver y

o f th e dat a files .