From: "Palazzolo, Michael A." < Michael.Palazzolo@alcoa.com > To: Rochelle Boyd/RTP/USEPA/US@EPA Cc: "Mitchell, John N." < John.Mitchell@alcoa.com >, Paul Sohi < psohi@aluminum.org >, "Charles D. Johnson"

< cjohnson@aluminum.org > Date: 08/22/2012 03:58 PM Subject: Costs for Tempo rary Capture Hoods



### Rochelle,

Alcoa received a budgetary equipment cost estimate for temporary capture hoods on two different furnaces at the Alcoa Davenport facility in Iowa: a tilting holder and a rever b melter. The supplier provided equipment cost, but did not conduct a site

- specific assessment or provide a cost for installation, electrical, etc. We had expected a second supplier to provide site

- specific installation costs by August 17, but this effort has fallen through.

We have therefore estimated the installation costs using the EPA Cost Manual.

Direct installation costs and indirect capital costs were estimated based on Cost Manual factors for a baghouse installation. These factors are appropriate because of the need to install an ID fan and sampling platforms in addition to just the hood and ducting. Some factors were adjusted per engineering recommendations to account for installation on an existing furnace, rather than a new furnace, and to add costs for removal of the temporary hood, ductwork and fan.

The estimated total capital costs (equipment plus installation) are $238,000 for the tilting holder and $208,000 for the reverb melter. So, installation of the hood would increase the cost of a compliance test by five or six fold.

Please let me know if you have any questions or need additional information.

Regards,

Mike

Michael Palazzolo Alcoa Inc. 201 Isabella Street Pittsburgh, PA 15212

- 5858 Ph: 412

- 553

- 4832Estimate of Hooding Cost-Tilting holder Value Notes/References Capital Investment Costs

Direct Capital Costs (DCC)

Purchased Equipment Costs (PEC)

Hoods and ductwork $88,300 Based on vendor quotation Davenport Tilting Holder (Gillespie & Powers, Inc. 2012)  Hood over front door with manual damper Included  Hood over side door for snort fluxer with manua Included  Hood over pouring spout with manual damper Included  Included (4) 3” dia. Test ports Included  60’-0” Linear Feet of 18” diameter unlined duct Included  40,000 CFM Exhaust Fan Included  Necessary platforms Included Subtotal (EC) $88,300

Instrumentation $0 Sales tax $4,415 State sales tax rate for Iowa is 5.0% Freight $4,415 USEPA 2002, Section 6, Chapter 1, Table 1.9 (5% of EC) Total Purchased Equipment Costs (PEC) $97,130

Direct Installation Costs (DIC)

Foundations and supports $3,885 USEPA 2002, Section 6, Chapter 1, Table 1.9 (4% of EC) Hood Handling, Erection and Fan installation $77,704 USEPA 2002, Section 6, Chapter 1, Table 1.9 (80% of EC) Increased from 50% for retrofit installation. Equipment removal after testing $23,311 Assume 30% of handling and erection Electrical $7,770 USEPA 2002, Section 6, Chapter 1, Table 1.9 (8% of EC) Piping $0 Insulation $0 Painting $0

Total Direct Installation Costs (DIC) $112,671
Total Direct Capital Costs $209,801 Sum of PEC and DIC

Indirect Capital Costs (ICC)

Engineering $4,900 Based on vendor quotation for two furnaces (Gillespie & Powers, Inc. 2012) Assume 50% for each furnace Construction and field expenses $19,426 USEPA 2002, Section 6, Chapter 1, Table 1.9 (20% of EC) Contractor fees $0 Start-up $971 USEPA 2002, Section 6, Chapter 1, Table 1.9 (1% of EC) Performance test $0 Contingencies $2,914 USEPA 2002, Section 6, Chapter 1, Table 1.9 (3% of EC)
Total Indirect Capital Costs $28,211
Total Capital Investment Costs (TCIC) $238,012 Sum of DCC and ICC

References: USEPA. 2002. EPA Air Pollution Control Cost Manual , Sixth Edition. EPA/452/B-02-001. January. 

### Estimated Captial Investment Cost Analysis for Hood on Tilting HolderValue Notes/References Capital Investment Costs

Direct Capital Costs (DCC)

Purchased Equipment Costs (PEC)

Hoods and ductwork $79,300 Based on vendor quotation Davenport Tilting Holder (Gillespie & Powers, Inc. 2012)  Hood over front door with manual damper Included  Included (4) 3” dia. Test ports Included  50’-0” Linear Feet of 18” diameter unlined ductwor Included  40,000 CFM Exhaust Fan Included  Necessary platforms Included

Subtotal (EC) $79,300

Instrumentation $0 Sales tax $3,965 State sales tax rate for Iowa is 5.0% Freight $3,965 USEPA 2002, Section 6, Chapter 1, Table 1.9 (5% of EC) Total Purchased Equipment Costs (PEC) $87,230

Direct Installation Costs (DIC)

Foundations and supports $3,489 USEPA 2002, Section 6, Chapter 1, Table 1.9 (4% of EC) Hood Handling and erection $69,784 USEPA 2002, Section 6, Chapter 1, Table 1.9 (80% of EC) Increased from 50% for retrofit installation. Hood removal $20,935 Assume 30% of handling and erection Electrical $872 USEPA 2002, Section 6, Chapter 1, Table 1.9 (8% of EC) Piping $0 Insulation $0 Painting $0

Total Direct Installation Costs (DIC) $95,081
Total Direct Capital Costs $182,311 Sum of PEC and DIC

Indirect Capital Costs (ICC)

Engineering $4,900 Based on vendor quotation for two furnaces (Gillespie & Powers, Inc. 2012) Assume 50% for each furnace Construction and field expenses $17,446 USEPA 2002, Section 6, Chapter 1, Table 1.9 (20% of EC) Contractor fees $0 Start-up $872 USEPA 2002, Section 6, Chapter 1, Table 1.9 (1% of EC) Performance test $0 Contingencies $2,617 USEPA 2002, Section 6, Chapter 1, Table 1.9 (3% of EC)
Total Indirect Capital Costs $25,835

Total Capital Investment Costs (TCIC) $208,146 Sum of DCC and ICC

References: USEPA. 2002. EPA Air Pollution Control Cost Manual , Sixth Edition. EPA/452/B-02-001. January. 

### Estimated Captial Investment Cost Analysis for Hood on Reverb Melter

### Page 1 of 2 Document by:RAN 8/7/2012 2:39 PM 

## E-MAIL Delwyn.Forrest@alcoa.com

August 7, 2012 Mr. Delwyn Forrest Alcoa 300 North Hall Road, Bldg 75 Alcoa, TN 37701

Re: BUDGETARY QUOTE- EXHAUST HOODS AND DUCTWORK GP BID NO. BC-6419

Dear Mr. Forrest,
We are pleased to summit the following bud getary quote for the preliminary engineering and for the supply of the Exhaust Hoods and Ductwork that would be needed to meet your needs at Alcoa- Davenport, IA.
Preliminary Engineering
Gillespie & Powers will provide a site visit to the plant location in Davenport, IA to evaluate both furnaces and make necessary recommendations along with preliminary drawing layouts and equipment requirements for estimated purposes. This would include a feasibility study of the facility logi stics along with flow calculations of the ductwork to meet ACGIH standards.
Our Lump Sum Price for the Above Sc ope of Work is: ..............................$ 9,800

SUPPLY- Exhaust Hoods and Ductwork #2 TILTING HOLDER

 Hood over front door with manual damper

 Hood over side door for snort fluxer with manual damper

 Hood over pouring spout with manual damper

 Included (4) 3” dia. Test ports

 60’-0” Linear Feet of 18” diameter unlined ductwork

 40,000 CFM Exhaust Fan

 Necessary platforms
Our Budgetary Price for the Above Scope of Work is: ............................$ 88,300 (F.O.B St. Louis, MO) 9550 True Drive St. Louis, Missouri 63132 314-423-9460 Main Office 800-325-7075 Toll Free Line 314-428-4431 Facsimile

General Information: info@gillespiepowers.com

Additional information on the 

### Web: www.gillespiepowers.com 

# Gillespie & Powers, Inc.

### Page 2 of 2 Document by:RAN 8/7/2012 2:39 PM 

## SUPPLY- Exhaust Hoods and Ductwork #16 MELTER

 Hood over front door with manual damper

 Included (4) 3” dia. Test ports

 50’-0” Linear Feet of 18” diameter unlined ductwork

 40,000 CFM Exhaust Fan

 Necessary platforms
Our Budgetary Price for the Above Scope of Work is: ............................$ 79,300 (F.O.B St. Louis, MO
NOTE: All Installations of supplied equipment is by others.
Safety is of primary importance for Gillesp ie & Powers, Inc. We recognize this responsibility and are committed to provid ing a safe and healthy working environment. We take a proactive approach toward safety as we are continually striving to improve safety as a whole including our written progr ams, awareness, educat ion, incident rate, and overall attitude.
Thank you for the opportunity of submitting this quotation and we look forward to the opportunity to earn your business on th is and other repairs in the future.

Regards,
GILLESPIE & POWERS, INC

. 

# Jon Gillespie
RAN:JRG Jon R Gillespie Jong@gillespiepowers.com