Printed 6/30/2014

Calportland Cement - Rillito Plant Kiln 4 (Precalciner)

NOx Control Cost Estimates

SNCR (only) Cost Comparison

Cost Item Original 

(Contractor)

SIP 

comments

EPA revised per 

SIP

EPA revised per 

FIP 

N

otes

Capital Cost $ $1,336,373 $1,366,027 $1,366,027 $1,366,027

Capital Recovery Factor 0.094 0.094 0.094 0.094

Interest Rate % 7.0% 7.0% 7.0% 7.0%

Equipment Lifetime yr 20 20 20 20

Annualized Capital Costs $/yr $126,144 $128,943 $128,943 $128,943

Fixed Operating Costs $/yr $128,460 $110,267 $110,267 $110,267

Reagent $/yr $349,978 $1,290,359 $769,435 $1,027,965 1

Total Annual Costs $/yr $604,583 $1,610,491 $1,089,566 $1,348,096

NOx Removed tpy 1,041 639 1,041 729 2

Cost Effectiveness $/ton $581 $2,522 $1,047 $1,850

Notes:

1 Differences are primarily the result of different reagent costs

2 CalPortland assumed a 30% SNCR control efficiency

EPA Emission Estimates

Ctrl Tech Ctrl Eff NOx Reduction

(%) (lb/ton) (tpy) (tpy)

Baseline (None) -- 4.10 2,082 --

SNCR@ 35% 35% 2.67 1,353 729

SNCR@ 50% 50% 2.05 1,041 1041

Notes:

Baseline emission rates and emission factors as calculated in [Cement Plant Emission Calculations 2014-01-24.xlsx]

CalPortland Emission Estimates

Ctrl Tech Ctrl Eff NOx Reduction

(%) (lb/ton) (tpy) (tpy)

Baseline (None) -- 4.01 2,129 --

SNCR@ 30% 30% 2.81 1,490 639

SNCR@ 50% 50% 2.01 1,065 1065

Notes:

Emission factors and reductions as included in Calportland's RP analysis, May 9, 2013

NOx Emissions

NOx Emissions

Phoenix Cement

Control Cost Calculations

Page 1 of 2

Summary

U.S. EPA Region 9

Air Division
Printed 6/30/2014

ons 2014-01-24.xlsx]

Phoenix Cement

Control Cost Calculations

Page 2 of 2

Summary

U.S. EPA Region 9

Air Division
Printed 6/30/2014

SNCR-only Cost (original ATP contractor estimates)

Capital Costs

Capital Cost $1,336,373 ATP Memo, Re: Costs and Performance of Controls – re

Capital Recovery Factor 0.094

Interest Rate 7.0%

Equipment Lifetime (years) 20

Annual Costs

Annualized Capital costs $126,144

Fixed Operating Costs $128,460 ATP Memo, Re: Costs and Performance of Controls – re

Reagent $349,978 Based upon Normal Stoichiometric Ratio = 1

Total Annual Costs $604,583

Phoenix Cement

Control Cost Calculations

Page 1 of 2

Original (contractor)

U.S. EPA Region 9

Air Division
Printed 6/30/2014

mance of Controls – revised from comments, March 10, 2009, Eq E.15

mance of Controls – revised from comments, March 10, 2009, page 17

Phoenix Cement

Control Cost Calculations

Page 2 of 2

Original (contractor)

U.S. EPA Region 9

Air Division
Printed 6/30/2014

SNCR-only Costs (per CalPortland's May 2013 analysis)

Capital Costs Notes

Direct Costs

Purchased Equipment Costs (PEC)

SNCR system $650,000

Instrumentation and controls 10% $65,000 10% of EC, Per EPA Con

Freight 5% $32,500 3% of EC, CCM, Section 

Sales Taxes 3% $19,500 5% of EC, CCM, Section 

Subtotal $767,000

Installation Costs

Foundations and Support 8% $61,360 Per CCM, Section 5.2, C

Handling and Erection 14% $107,380 Per CCM, Section 5.2, C

Electrical Installation 4% $30,680 Per CCM, Section 5.2, C

Piping 2% $15,340 Per CCM, Section 5.2, C

Insulation 1% $7,670 Per CCM, Section 5.2, C

Painting 1% $7,670 Per CCM, Section 5.2, C

Subtotal $230,100

Total Direct Costs (DC) $997,100

Indirect Costs

Installation Costs

Engineering and Supervision 10% $99,710 Per CCM, Section 5.2, C

Construction and Field Expense 5% $49,855 Per CCM, Section 5.2, C

Construction Fees 10% $99,710 Per CCM, Section 5.2, C

Start-up 2% $19,942 Per CCM, Section 5.2, C

Contingencies 10% $99,710 Per CCM, Section 5.2, C

Total Indirect Costs (IC) $368,927

Total Capital Costs (TCC) $1,366,027

Phoenix Cement

Control Cost Calculations

Page 1 of 2

Per SIP Comments

U.S. EPA Region 9

Air Division
Printed 6/30/2014

Annual Costs Notes

Direct Costs

Operating Labor $43,800

Maintenance Labor 2% $27,321 2% of Total capital cost

Maintenance Materials 2% $27,321 2% of Total capital cost

Ammonia Usage 787 tpy

Ammonia Unit Cost 1,640 $/ton

Ammonia Annual Cost $1,290,359

Electricity Unit Cost 100 $/MWh

Electricity Usage 15 kW

Electricity Annual Cost $11,826

Total Direct Costs (DC) $1,400,626

Indirect Costs

Overhead (60% x total labor) 60% $26,280 60% of Total Maintena

Administration 2% $27,321 1% of Total Capital Cos

Property Tax 1% $13,660 1% of Total Capital Cos

Insurance 1% $13,660 2% of Total Capital Cos

Annualized Capital costs $128,943

Capital Recovery Factor 0.094

Interest Rate 7.0%

Equipment Lifetime (years) 20

Total Indirect Costs (IC) $209,864

Total Annual Costs $1,610,491

Phoenix Cement

Control Cost Calculations

Page 2 of 2

Per SIP Comments

U.S. EPA Region 9

Air Division
Printed 6/30/2014

SNCR-only Costs (Per EPA edits of CalPortland's comments)

Capital Costs Notes

Direct Costs

Purchased Equipment Costs (PEC)

SNCR system $650,000

Instrumentation and controls 10% $65,000 10% of EC, Per EPA Con

Freight 5% $32,500 3% of EC, CCM, Section 

Sales Taxes 3% $19,500 5% of EC, CCM, Section 

Subtotal $767,000

Installation Costs

Foundations and Support 8% $61,360 Per CCM, Section 5.2, C

Handling and Erection 14% $107,380 Per CCM, Section 5.2, C

Electrical Installation 4% $30,680 Per CCM, Section 5.2, C

Piping 2% $15,340 Per CCM, Section 5.2, C

Insulation 1% $7,670 Per CCM, Section 5.2, C

Painting 1% $7,670 Per CCM, Section 5.2, C

Subtotal $230,100

Total Direct Costs (DC) $997,100

Indirect Costs

Installation Costs

Engineering and Supervision 10% $99,710 Per CCM, Section 5.2, C

Construction and Field Expense 5% $49,855 Per CCM, Section 5.2, C

Construction Fees 10% $99,710 Per CCM, Section 5.2, C

Start-up 2% $19,942 Per CCM, Section 5.2, C

Contingencies 10% $99,710 Per CCM, Section 5.2, C

Total Indirect Costs (IC) $368,927

Total Capital Costs (TCC) $1,366,027

Phoenix Cement

Control Cost Calculations

Page 1 of 4

EPA Revised

U.S. EPA Region 9

Air Division
Printed 6/30/2014

Annual Costs Notes

Direct Costs

Operating Labor $43,800

Maintenance Labor 2% $27,321 2% of Total capital cost

Maintenance Materials 2% $27,321 2% of Total capital cost

Ammonia Usage 769 tpy

Ammonia Unit Cost 1,000 $/ton, see footnote 1 b

Ammonia Annual Cost $769,435

Electricity Unit Cost 100 $/MWh

Electricity Usage 15 kW

Electricity Annual Cost $11,826

Total Direct Costs (DC) $879,702

Indirect Costs

Overhead (60% x total labor) 60% $26,280 60% of Total Maintena

Administration 2% $27,321 1% of Total Capital Cos

Property Tax 1% $13,660 1% of Total Capital Cos

Insurance 1% $13,660 2% of Total Capital Cos

Annualized Capital costs $128,943

Capital Recovery Factor 0.094

Interest Rate 7.0%

Equipment Lifetime (years) 20

Total Indirect Costs (IC) $209,864

Phoenix Cement

Control Cost Calculations

Page 2 of 4

EPA Revised

U.S. EPA Region 9

Air Division
Printed 6/30/2014

0% of EC, Per EPA Control Cost Manual (CCM), Section 5.2, Chapter 1, Table 1.3

% of EC, CCM, Section 5.2, Chapter 1, Table 1.3

% of EC, CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

Phoenix Cement

Control Cost Calculations

Page 3 of 4

EPA Revised

U.S. EPA Region 9

Air Division
Printed 6/30/2014

% of Total capital cost, per CalPortland

% of Total capital cost, per CalPortland

/ton, see footnote 1 below

0% of Total Maintenance and labor

% of Total Capital Cost

% of Total Capital Cost

% of Total Capital Cost

Phoenix Cement

Control Cost Calculations

Page 4 of 4

EPA Revised

U.S. EPA Region 9

Air Division
Printed 6/30/2014

SNCR-only Costs (Per EPA edits of CalPortland's comments)

Capital Costs Notes

Direct Costs

Purchased Equipment Costs (PEC)

SNCR system $650,000

Instrumentation and controls 10% $65,000 10% of EC, Per EPA Con

Freight 5% $32,500 3% of EC, CCM, Section 

Sales Taxes 3% $19,500 5% of EC, CCM, Section 

Subtotal $767,000

Installation Costs

Foundations and Support 8% $61,360 Per CCM, Section 5.2, C

Handling and Erection 14% $107,380 Per CCM, Section 5.2, C

Electrical Installation 4% $30,680 Per CCM, Section 5.2, C

Piping 2% $15,340 Per CCM, Section 5.2, C

Insulation 1% $7,670 Per CCM, Section 5.2, C

Painting 1% $7,670 Per CCM, Section 5.2, C

Subtotal $230,100

Total Direct Costs (DC) $997,100

Indirect Costs

Installation Costs

Engineering and Supervision 10% $99,710 Per CCM, Section 5.2, C

Construction and Field Expense 5% $49,855 Per CCM, Section 5.2, C

Construction Fees 10% $99,710 Per CCM, Section 5.2, C

Start-up 2% $19,942 Per CCM, Section 5.2, C

Contingencies 10% $99,710 Per CCM, Section 5.2, C

Total Indirect Costs (IC) $368,927

Total Capital Costs (TCC) $1,366,027

Phoenix Cement

Control Cost Calculations

Page 1 of 4

EPA Revised per FIP Comments

U.S. EPA Region 9

Air Division
Printed 6/30/2014

Annual Costs Notes

Direct Costs

Operating Labor $43,800

Maintenance Labor 2% $27,321 2% of Total capital cost

Maintenance Materials 2% $27,321 2% of Total capital cost

Ammonia Usage 769 tpy

Ammonia Unit Cost 1,336 $/ton, see footnote 1 b

Ammonia Annual Cost $1,027,965

Electricity Unit Cost 100 $/MWh

Electricity Usage 15 kW

Electricity Annual Cost $11,826

Total Direct Costs (DC) $1,138,232

Indirect Costs

Overhead (60% x total labor) 60% $26,280 60% of Total Maintena

Administration 2% $27,321 1% of Total Capital Cos

Property Tax 1% $13,660 1% of Total Capital Cos

Insurance 1% $13,660 2% of Total Capital Cos

Annualized Capital costs $128,943

Capital Recovery Factor 0.094

Interest Rate 7.0%

Equipment Lifetime (years) 20

Total Indirect Costs (IC) $209,864

Phoenix Cement

Control Cost Calculations

Page 2 of 4

EPA Revised per FIP Comments

U.S. EPA Region 9

Air Division
Printed 6/30/2014

0% of EC, Per EPA Control Cost Manual (CCM), Section 5.2, Chapter 1, Table 1.3

% of EC, CCM, Section 5.2, Chapter 1, Table 1.3

% of EC, CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

er CCM, Section 5.2, Chapter 1, Table 1.3

Phoenix Cement

Control Cost Calculations

Page 3 of 4

EPA Revised per FIP Comments

U.S. EPA Region 9

Air Division
Printed 6/30/2014

% of Total capital cost, per CalPortland

% of Total capital cost, per CalPortland

/ton, see footnote 1 below

0% of Total Maintenance and labor

% of Total Capital Cost

% of Total Capital Cost

% of Total Capital Cost

Phoenix Cement

Control Cost Calculations

Page 4 of 4

EPA Revised per FIP Comments

U.S. EPA Region 9

Air Division