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MEMORANDU

M II-K-(B)-13 8

SUBJECT : Documentatio n fo r S02-Relate d Change s Mad e t o IFCA M Sinc e

Jun e 198 3

FROM : Dal e Pah l ,

Standard s Dtevefopmen t Branc h (MD-13 )

TO : Bo bShor t

Economi c Analysi s Branc h(MD-12 ) Thi s memorandu

m respond s t o you r reques t fo r technica l and economi c documentatio nfo r th e 1 2 S02-relate dchange s tha t hav e bee nmad e t o th e IFCA M assumption s sinc e Jul y 1983 . I hav e attache da summar y o f thes e change s t o thi s memorandum . Th e documentatio nfo r eac ho f th e change s i s keye dt o th e attachment . A.l . Fo r coa l tha t i s no t scrubbed , statistica l analyse s sho w tha t th e relativ e standar ddeviatio no f coa l sulfu r conten t range s fro m 5-2 5 percen t abou t th e mean . Thus , a s indicate di nRadian' s draf t Augus t 18 , 1983 , statistica l analysi s report , a facto r o f 1. 2 wa s selecte dt o determin e whethe r o r no t a specifi c coa l typ e i s i n complianc e wit ha 30-da y rollin g averag e SO 2 emissio nstandard . A simila r analysi s resulte di nselectio n o f a facto r o f 1. 3 t o adjus t emission s whe ncoa l mus t b e scrubbed . A.2 . Thes e change s reflec t recentl y acquire dperformanc e tes t informatio n fo r dr y an d dua l alkal i FG D whic hha s bee nincorporate di nth e technolog y updat e report . A.3 . Whil e utilit y

companie s hav e long-term contract s t o purchas e coa l o f fixe dsulfu r content , industria l boile r operator s ofte nmus t purchas e coa l fro m th e spo t market . Thus , utilit y boile r owner s ca ntrade-of f coa l sulfu r content , price , and scrubbe r cost s (b y no t scrubbin g a calculate d percen t o f th e exhaus t ga s stream ) i n orde r t o optimiz e tota l annualize d costs . Industria l boile r owners , however , canno t rel y onbein g abl e t o bypas s th e scrubbe r becaus e the y ma y nee dt o purchas e a t some futur e time a high-sulfu r coa l whic hwil l requir e extensiv e scrubbin g t o compl y wit h th e standard . Thus , IFCA M no longe r include s FG D bypas s fo r Industria l boilers . A.4 . Th e SO g SIP' s hav e bee nupdate db y EE A 1 na Jun e 22 , 1983 , lette r fro m Ti m Hoga nt o BobShor t t o reflec t al l SI P revision s throug hearl y 1983 . A.5 . Change s 1 n reliabilit y wer e mad e t o reflec t curren t FG D performanc e dat a 1 n th e technolog y updat e report . Th e change s 1 nfue l cost s and emissio nrate s reflec t Industr y relianc e o na complianc e fue l durin g period s o f FG D malfunction .P. 3

A.6 . Th e base s fo r thes e change s ar e se t fort hi nth e Ma y 16 , 1983 , memorandu

m fro m Radia nt o Charli e Sedman . A.7 . Th e basi s fo r addin g th e new coa l typ e i s documente di na Jun e 17 , 1983 , memorandu m fro m ICF t o Jud i Greenwald . A.8 . Th e basis fo r thi s chang e i s presente d1 nRadian' s Ma y 16 , 1983 , memorandu

m t o Charli e Sedman . A.9 . Th e change s i nemissio nrate s an dcoa l price s ar e base dondat a supplie db

y IC F an ddescribe d1 nmemorand a fro m Crai g Ebert , ICF (7/25/83) , an

dLarry Jones , ESE D (7/13/83) . A.1 0 and11 . Th e chang e i nscrubbe r desig nSO 2 remova l efficienc y reflect s industr y

practic e o f designin g FG D unit s t o achiev e 9 0 percen t reductio neve nthoug hth e scrubbe r may be subsequentl y operate da t lowe r efficiency . A.12 . Th e basi s fo r thi s chang e i s outline di nRadian' s Novembe r 14 , 1983 , memorandu

m t o Charli e Sedman . Sinc e mos t o f thes e change s originat e fro m eithe r IC F (i nth e cas e o f th e coa l prices ) o r Radia n(i nth e cas e o f th e cos t algorithms) , yo uwil l hav e copie s o f th e memorand a I hav e reference d1 nyou r files . However , 1 f yo unee dadditiona l copie s o r mor e detaile dinformatio n abou t an y o f th e change s I hav e mentioned , pleas e le t me know . Attachmen t

cc : Fre dPorte r (MD-13 ) Charli e Sedma n(MD-13 ) Wal t Stevenso n(MD-13 )P. 4

Attachmen t

CHANGE S T O IFCA

M TECHNICA L ASSUMPTION S SINC E JUN E 198 3

A . Mode l Revision s Relate dt o SO2 :

A. l Th e "wors t case " 30-da y rolling-averag e coa l SO 2 emissio nrat e i s estimate dt o b e equa l t o 1. 2 time s th e annua l averag e uncontrolle d emissio nrat e whe ncoa l i s no t scrubbed . Thi s "1.2 " facto r i s use d t o determin e whethe r o r no t a specifi c coa l typ e i s i ncomplianc e wit ha 30-da y

rolling-averag e SO 2 emissio nstandard . Th e "wors t case " 30-da y rolling-averag e coa l SO 2 emissio nrat e i s estimate dt o b e equa l t o 1. 3 time s th e annua l averag e uncontrolle d emissio nrat e whe nth e coa l typ e i s no t i ncomplianc e wit hth e 30 - day rolling-averag e NSP S an dmus t b e scrubbed . Thi s new "1.3 " facto r wil l b e use dt o estimat e th e SO 2 reductio nrequirement s fo r noncomplianc e coa l type s subjec t t o 30-da y rolling-averag e SO 2 NSPS . Th e us e o f Radia nCorporatio nestimate s o f th e relativ e standar d deviation s o f th e sulfu r variabilit y i ncoa l (se e lette r fro m Elder , R. , Radia nCorporation , t o Medine , E. , EEA , date dAugus t 5 , 1980 , andlette r fro

m Medine , E. , EEA , t o Short , R. , EPA , date d Augus t 13 , 1980 ) i nth e calculatio no f FGD system capita l cos t estimate s i s discontinued .



### A. 2

A. 3

A. 4 I f th e coa l typ e i s no t i ncomplianc e wit ha 30-day , SO 2 emissio nstandar do r i f scrubbin g i s require do n fire dindustria l boilers , a "1.3 " facto r i s used . rolling-averag e al l ne w coal Th e uppe r limi t on spra y dryin g i s 9 0 restriction s o

ncoa l type s sulfu r coals ) wit hrespec t sulfu r dioxid e remova l fo r contro l i s als o 9 0 percen t

sulfu r dioxid e emissio nreductio n percen t fro m lime (30-day rollin g average) . Ther e ar e n o (e.g. , restricte dt o low andmediu

m t o thi s technology . Th e uppe r limi t o n th e dua l alkal i FG D wit han dwithou t P

M (30-day rollin g average) . Th e boile r flu e ga s flow rat e wil l no t b e o f scrubbe r capita l o r O& M cos t estimate s partia l scrubbin g wit hflu e ga s bypass . reduce di nth e calculatio n i norde r t o simulat e

Th e SO 2 SIP' s i nIFCA M hav e bee nupdated . Th e PM andN0 XSIP' s hav e no t bee nrevised . A. 5 Scrubbe r reliabilit y i s assume dt o b e 9 5 percent . I t i s assume d tha t new Industria l coal-fire dboiler s wit hscrubber s bur na complianc e backu pfue l (natura l gas ) fo r 5 percen t o f eac hannua l operatin g perio d(whe nth e scrubbe r 1 s down) . Th e fue l cost s and annua l averag e emission s rate s hav e bee nadjuste dfo r thi s assumption . I nfurthe r analyses , a reliabilit y o f 9 0 percen t wil l b e assume d fo r lime spray

drying , and9 5 percen t fo r dua l alkali .P. 5

A. 6 FGD syste

m coa l algorithm s hav e bee nrevised . Referenc e memorandu m fro m Aul , E.F . e t al. , Radia nCorporation , t o Sedman , C.B. , EPA/ISB , date dMa y

16,.1983 . Revise dCos t Algorithm s fo r Lime Spra y Dryin g an dDua l Alkal i FGD Systems . Thes e new cos t algorithm s hav e bee n incorporate dint o IFCA M wit hfurthe r algorith m revision s provide d b y Larry Jone s o

nJun e 16 , 1983 . A. 7 A ne w coa l typ e ha s bee nadde dt o IFCAM , < 0.8 0 l bS02/MMBtu . Regiona l delivere dindustria l coa l pric e projection s fo r thi s new coa l typ e hav e bee nprovide db y ICF Incorporate d(se e memorandu m fro m Ebert , C , IC F Incorporated , t o Greenwald , J. , EPA , date d Jun e 17 , 1983 . Coa l Price s fo r Very-Lo w Sulfu r Coal s 1nth e NSP S Analyses) . A. 8 FGD syste

m cos t algorithms : Th e cos t algorithm s fo r th e dua l alkal i FGD system

wit hP M remova l hav e bee nchange dbecaus e th e typ e o f scrubbe r ha s bee nchanged . Th e cost s i nth e Radia n Corporatio nmemorandu m ar e fo r a ventur i scrubber . EP A ha s decide dt o us e a tray absorbe r fo r th e dua l alkal i FGD syste m wit hP M removal . A s a result , th e new cos t algorithm s ar e th e equation s fo r a dua l alkal i FG D syste m withou t P

M remova l (Tabl e 3- 1 i nth e Radia nCorporatio nmemo a s modifie db y Larry Jone s o

nJun e 16 , 1983 ) plu s th e cos t equation s fo r a singl e mechanica l collector . A. 9 (a ) Revision s o f annua l averag e SO 2 emissio nrate s b y coa l typ e pe r memorandu

m fro m L . Jones , EPA , Jul y 13 , 1983 , Complianc e Coa l Option s fo r Cos t Analysis . Rang e Ol dAnnua l Averag e New Annua l Averag e (l bS02/MMBtu ) (l bSO2/MMBU1 ) (l bS0?/MMBtu )

1.08-1.6 7 (D ) 1.4 5 1.3 8 1.67-2.5 0 (E ) 2.1 0 2.0 8 (b ) Revisio no f Regio n6 , Southwest , bituminou s coa l (1.08-1.6 7 l b S02/MMBtu ) pric e i n1985 . Old : $1.03/MMBt u(Januar y 198 3 $/MMBtu) . New : $2.39/MMBt u(Januar y 198 3 $/MMBtu) . Revise d b y Crai g Ebert , IC F Incorporated , o nJul y 25 , 1983 . A.1 0 Scrubbe r capita l cos t algorithms : Th e scrubbe r capita l andannua l O& M cos t algorithm s i nIFCA M ar e function s o f th e assume dSO 2 remova l efficiency . Th e mode l modificatio ni s t o se t th e percen t SO 2 remova l efficienc y paramete r ("EFFS02" ) t o a constant , 90 , o n a 30-da y rollin g averag e basis , (regardles s o f th e SO 2 remova l efficienc y

require db

y th e curren t NSPS , propose dNSPS , o r SIP ) fo r th e scrubbe r capita l cos t algorithms . Previously , thi s paramete r wa s a variabl e wit ha lowe r boun do f 50 . Thi s paramete r remain s a variabl e (wit ha lowe r boundo f 50 ) fo r th e scrubbe r annua l O& M cos t algorithm s i nIFCAM . Referenc e Ite m A. l example s abov e fo r an explanatio no f how

thi s parameter , th e SO 2 remova l efficienc y rate , i s derived .P. 6

A.1 1 Scrubbe r capita l cos t algorithms : Th e scrubbe r capita l andannua l O& M cos t algorithm s i nIFCA M ar e als o function s o f the percen t sulfu r o f th e coa l type . Th e mode l modificatio ni s t o se t th e percen t sulfu r t o a constan t highsulfu r valu e i neac hregio nfo r th e scrubbe r capita l cos t algorithms . Thi s revisio nreflect s th e assumptio ntha t a scrubbe r ma y b e designe dt o bur na highe r sulfu r coa l type . Fo r bituminou s coa l types , th e percen t sulfu r wil l b e consisten t wit hth e highes t sulfu r bituminou s coa l typ e i nth e region . Fo r subbituminou s coa l types , th e percen t sulfu r wil l be consisten t wit hthe highes t sulfu r subbituminou s coa l typ e i nth e region . A.1 2 Sodiu

m throwawa y

FG D system s wer e adde dfo r residua l fue l oi l an d coa l boilers . [Lette r fro m Aul , E . (Radia nCorporation ) t o Sedman , C . (EPA) . Novembe r 14 , 1983 , onSodiu m Scrubbin g Algorith

m (NATH). ]