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** **o t** **e s** 

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 2CalPortland 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 DivisionPrinted 6/30/2014

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

Phoenix Cement Control Cost Calculations Page 2 of 2 Summary U.S. EPA Region 9 Air DivisionPrinted 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 – revised from comments, March 10, 2009, Eq E.15

Capital Recovery Factor 0.094 Interest Rate 7.0% Equipment Lifetime (years) 20

**Annual Costs** Annualized Capital costs $126,144 Fixed Operating Costs $128,460ATP Memo, Re: Costs and Performance of Controls – revised from comments, March 10, 2009, page 17 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 DivisionPrinted 6/30/2014

ATP Memo, Re: Costs and Performance of Controls – revised from comments, March 10, 2009, Eq E.15

ATP Memo, Re: Costs and Performance 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 DivisionPrinted 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 Control Cost Manual (CCM), Section 5.2, Chapter 1, Table 1.3 Freight 5% $32,5003% of EC, CCM, Section 5.2, Chapter 1, Table 1.3 Sales Taxes 3% $19,5005% of EC, CCM, Section 5.2, Chapter 1, Table 1.3

Subtotal $767,000 Installation Costs Foundations and Support 8% $61,360Per CCM, Section 5.2, Chapter 1, Table 1.3 Handling and Erection 14% $107,380Per CCM, Section 5.2, Chapter 1, Table 1.4 Electrical Installation 4% $30,680Per CCM, Section 5.2, Chapter 1, Table 1.5 Piping 2% $15,340Per CCM, Section 5.2, Chapter 1, Table 1.6 Insulation 1% $7,670 Per CCM, Section 5.2, Chapter 1, Table 1.7 Painting 1% $7,670 Per CCM, Section 5.2, Chapter 1, Table 1.8

Subtotal $230,100 **Total Direct Costs (DC) $997,100** 

**Indirect Costs** Installation Costs Engineering and Supervision 10% $99,710Per CCM, Section 5.2, Chapter 1, Table 1.3 Construction and Field Expense 5% $49,855 Per CCM, Section 5.2, Chapter 1, Table 1.4 Construction Fees 10% $99,710Per CCM, Section 5.2, Chapter 1, Table 1.5 Start-up 2% $19,942 Per CCM, Section 5.2, Chapter 1, Table 1.6 Contingencies 10% $99,710Per CCM, Section 5.2, Chapter 1, Table 1.7 **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 DivisionPrinted 6/30/2014

**Annual Costs** Notes

**Direct Costs** Operating Labor $43,800 Maintenance Labor 2% $27,3212% of Total capital cost, per CalPortland Maintenance Materials 2% $27,3212% of Total capital cost, per CalPortland Ammonia Usage 787tpy Ammonia Unit Cost 1,640$/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% $26,28060% of Total Maintenance and labor Administration 2% $27,321 1% of Total Capital Cost Property Tax 1% $13,660 1% of Total Capital Cost Insurance 1% $13,6602% of Total Capital Cost 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 DivisionPrinted 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 Control Cost Manual (CCM), Section 5.2, Chapter 1, Table 1.3 Freight 5% $32,5003% of EC, CCM, Section 5.2, Chapter 1, Table 1.3 Sales Taxes 3% $19,5005% of EC, CCM, Section 5.2, Chapter 1, Table 1.3

Subtotal $767,000 Installation Costs Foundations and Support 8% $61,360Per CCM, Section 5.2, Chapter 1, Table 1.3 Handling and Erection 14% $107,380Per CCM, Section 5.2, Chapter 1, Table 1.3 Electrical Installation 4% $30,680Per CCM, Section 5.2, Chapter 1, Table 1.3 Piping 2% $15,340Per CCM, Section 5.2, Chapter 1, Table 1.3 Insulation 1% $7,670 Per CCM, Section 5.2, Chapter 1, Table 1.3 Painting 1% $7,670 Per CCM, Section 5.2, Chapter 1, Table 1.3

Subtotal $230,100 **Total Direct Costs (DC) $997,100** 

**Indirect Costs** Installation Costs Engineering and Supervision 10% $99,710Per CCM, Section 5.2, Chapter 1, Table 1.3 Construction and Field Expense 5% $49,855 Per CCM, Section 5.2, Chapter 1, Table 1.3 Construction Fees 10% $99,710Per CCM, Section 5.2, Chapter 1, Table 1.3 Start-up 2% $19,942 Per CCM, Section 5.2, Chapter 1, Table 1.3 Contingencies 10% $99,710Per CCM, Section 5.2, Chapter 1, Table 1.3 **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 DivisionPrinted 6/30/2014

**Annual Costs** Notes

**Direct Costs** Operating Labor $43,800 Maintenance Labor 2% $27,3212% of Total capital cost, per CalPortland Maintenance Materials 2% $27,3212% of Total capital cost, per CalPortland Ammonia Usage 769tpy Ammonia Unit Cost 1,000$/ton, see footnote 1 below 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% $26,28060% of Total Maintenance and labor Administration 2% $27,321 1% of Total Capital Cost Property Tax 1% $13,660 1% of Total Capital Cost Insurance 1% $13,6602% of Total Capital Cost 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 DivisionPrinted 6/30/2014

10% of EC, Per EPA Control Cost Manual (CCM), Section 5.2, Chapter 1, Table 1.3 3% of EC, CCM, Section 5.2, Chapter 1, Table 1.3 5% of EC, CCM, Section 5.2, Chapter 1, Table 1.3

Per CCM, Section 5.2, Chapter 1, Table 1.3 Per CCM, Section 5.2, Chapter 1, Table 1.3 Per CCM, Section 5.2, Chapter 1, Table 1.3 Per CCM, Section 5.2, Chapter 1, Table 1.3 Per CCM, Section 5.2, Chapter 1, Table 1.3 Per CCM, Section 5.2, Chapter 1, Table 1.3

Per CCM, Section 5.2, Chapter 1, Table 1.3 Per CCM, Section 5.2, Chapter 1, Table 1.3 Per CCM, Section 5.2, Chapter 1, Table 1.3 Per CCM, Section 5.2, Chapter 1, Table 1.3 Per 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 DivisionPrinted 6/30/2014

2% of Total capital cost, per CalPortland 2% of Total capital cost, per CalPortland
$/ton, see footnote 1 below

60% of Total Maintenance and labor 1% of Total Capital Cost 1% of Total Capital Cost 2% of Total Capital Cost

Phoenix Cement Control Cost Calculations Page 4 of 4 EPA Revised U.S. EPA Region 9 Air DivisionPrinted 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 Control Cost Manual (CCM), Section 5.2, Chapter 1, Table 1.3 Freight 5% $32,5003% of EC, CCM, Section 5.2, Chapter 1, Table 1.3 Sales Taxes 3% $19,5005% of EC, CCM, Section 5.2, Chapter 1, Table 1.3

Subtotal $767,000 Installation Costs Foundations and Support 8% $61,360Per CCM, Section 5.2, Chapter 1, Table 1.3 Handling and Erection 14% $107,380Per CCM, Section 5.2, Chapter 1, Table 1.3 Electrical Installation 4% $30,680Per CCM, Section 5.2, Chapter 1, Table 1.3 Piping 2% $15,340Per CCM, Section 5.2, Chapter 1, Table 1.3 Insulation 1% $7,670 Per CCM, Section 5.2, Chapter 1, Table 1.3 Painting 1% $7,670 Per CCM, Section 5.2, Chapter 1, Table 1.3

Subtotal $230,100 **Total Direct Costs (DC) $997,100** 

**Indirect Costs** Installation Costs Engineering and Supervision 10% $99,710Per CCM, Section 5.2, Chapter 1, Table 1.3 Construction and Field Expense 5% $49,855 Per CCM, Section 5.2, Chapter 1, Table 1.3 Construction Fees 10% $99,710Per CCM, Section 5.2, Chapter 1, Table 1.3 Start-up 2% $19,942 Per CCM, Section 5.2, Chapter 1, Table 1.3 Contingencies 10% $99,710Per CCM, Section 5.2, Chapter 1, Table 1.3 **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 DivisionPrinted 6/30/2014

**Annual Costs** Notes

**Direct Costs** Operating Labor $43,800 Maintenance Labor 2% $27,3212% of Total capital cost, per CalPortland Maintenance Materials 2% $27,3212% of Total capital cost, per CalPortland Ammonia Usage 769tpy Ammonia Unit Cost 1,336$/ton, see footnote 1 below 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% $26,28060% of Total Maintenance and labor Administration 2% $27,321 1% of Total Capital Cost Property Tax 1% $13,660 1% of Total Capital Cost Insurance 1% $13,6602% of Total Capital Cost 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 DivisionPrinted 6/30/2014

10% of EC, Per EPA Control Cost Manual (CCM), Section 5.2, Chapter 1, Table 1.3 3% of EC, CCM, Section 5.2, Chapter 1, Table 1.3 5% of EC, CCM, Section 5.2, Chapter 1, Table 1.3

Per CCM, Section 5.2, Chapter 1, Table 1.3 Per CCM, Section 5.2, Chapter 1, Table 1.3 Per CCM, Section 5.2, Chapter 1, Table 1.3 Per CCM, Section 5.2, Chapter 1, Table 1.3 Per CCM, Section 5.2, Chapter 1, Table 1.3 Per CCM, Section 5.2, Chapter 1, Table 1.3

Per CCM, Section 5.2, Chapter 1, Table 1.3 Per CCM, Section 5.2, Chapter 1, Table 1.3 Per CCM, Section 5.2, Chapter 1, Table 1.3 Per CCM, Section 5.2, Chapter 1, Table 1.3 Per 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 DivisionPrinted 6/30/2014

2% of Total capital cost, per CalPortland 2% of Total capital cost, per CalPortland
$/ton, see footnote 1 below

60% of Total Maintenance and labor 1% of Total Capital Cost 1% of Total Capital Cost 2% 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