CONTENTS
......................................PAGE
Preface .... V
Summary .... 1
Introduction .... 3
Part 1: Scope of the report .... 3
Part 2: The 85 metropolitan areas .... 5
Chapter 1: Government programs and costs .... 7
1.10 Federal activities .... 7
1.11 Regional control of air pollution .... 7
1.12 Financial and technical assistance .... 8
1.13 Manpower development .... 9
1.14 Motor vehicle pollution control .... 9
1.15 Air quality surveillance .... 10
1.16 Research and development .... 10
1.20 State, local, and regional programs .... 11
1.30 Projection of governmental expenditures .... 12
Chapter 2: Costs to industry .... 13
2.10 Estimating costs for combustion sources .... 13
2.11 Estimating sulfur oxides control costs .... 14
2.12 Estimating particulate control costs .... 15
2.20 Estimating industrial process control costs .... 15
2.30 Allocation of costs .... 17
2.40 Cost estimates for combustion sources .... 17
2.41 Steam electric power generation .... 18
2.42 Industrial fuel combustion .... 21
2.43 Commercial fuel combustion .... 24
2.50 Industrial process control costs .... 25
2.51 Integrated steel mills .... 25
2.52 Asphalt batching .... 27
2.53 Hydraulic cement .... 29
2.54 Gray iron foundries .... 31
2.55 Sulfate pulp mills .... 32
2.56 Petroleum refineries .... 34
2.57 Sulfuric acid .... 36
Chapter 3: Motor vehicle pollution control costs .... 39
Appendix .... 43(())
PREFACE
The Air Quality Act (Public Law 90-148), as passed in November 1967,
calls on the Department of Health, Education, and Welfare to conduct and
support a comprehensive program of air pollution research and control
activities. As part of this program, the Secretary is directed to make
a continuing evaluation of the costs of bringing the problem of air
pollution under effective control and to report his findings annually to
the Congress.
This directive is spelled out in section 305(a) of the act, which
states, in part, that the Secretary "shall make a detailed estimate of
the cost of carrying out the provisions of this act; a comprehensive
study of the cost of program implementation by affected units of
government; and a comprehensive study of the economic impact of air
quality standards on the Nation's industries, communities, and other
contributing sources of pollution, including an analysis of the national
requirements for and the cost of controlling emissions to attain such
standards of air quality as may be established pursuant to this act or
applicable State law."
This report, the first submitted under section 305(a), presents
estimates of the costs of dealing with some of the most important
elements of the modern air pollution problem. Exactly what the total
cost of bringing air pollution under control will be is a question that
will require further investigation and greater experience with
implementation of the Air Quality Act. As progress is made in this
direction, it will be possible to develop more precise estimates and to
expand the scope of reports under section 305(a). Thus, each succeeding
report will represent another step toward national understanding of the
full cost of bringing the problem of air pollution under effective
control.
This report was prepared by the National Air Pollution Control
Administration, which is responsible for carrying out the functions of
the Department of Health, Education, and Welfare under the Air Quality
Act of 1967.(())
THE COST OF CLEAN AIR
SUMMARY
This report provides estimates of the prospective costs of air
pollution control efforts under the Air Quality Act (Public Law 90-148)
during fiscal years 1970-74.
It is estimated that governmental expenditures for air pollution
control programs will grow at an annual rate of about 30 percent.
Summary table 1 shows estimates of combined Federal-State-local
spending.
Summary Table 1. -- Estimated governmental expenditures
Fiscal year: ...................................... Millions
. 1969 ............................................. $122.9
. 1970 .............................................. 159.6
. 1971 .............................................. 207.4
. 1972 .............................................. 269.3
. 1973 .............................................. 350.0
. 1974 .............................................. 454.5
.... Total ........................................ 1,563.7
Estimates of industrial spending were developed for fuel combustion
sources and selected industrial process sources located in 85
metropolitan areas. These estimates pertain to the control of sulfur
oxides and particulate emissions from steam-electric powerplants and
industrial and commercial fuel-burning facilities. Summary table 2
shows the estimated range of annual costs of control. The upper and
lower ends of the range reflects probable variations in costs of control
equipment, installation, and other factors. Fiscal 1971 is the first
year for which estimates are presented, since it is then that
implemention of air quality standards is expected to begin under the
time table prescribed by the Air Quality Act.
SUMMARY TABLE 2. -- FUEL COMBUSTION SOURCES: ESTIMATED
ANNUAL COSTS OF SUBSTITUTING LOW- FOR HIGH-SULFUR COAL
AND 1 PERCENT SULFUR FOR HIGHER SULFUR RESIDUAL OIL
COMBINED WITH MAXIMUM CONTROL OF PARTICULATE EMISSIONS
IN 85 METROPOLITAN AREAS
(In millions of dollars)
FISCAL YEAR .................... LOW ......... HIGH
1971 .......................... 401.6 ....... 455.0
1972 .......................... 635.2 ....... 730.8
1973 .......................... 662.1 ....... 766.7
1974 .......................... 689.3 ....... 801.4
The estimates for industrial process sources pertain to the control
of particulate emissions and, in some cases, sulfur oxides emissions,
from integrated steel mills, asphalt batching plants, hydraulic cement
plants, gray iron foundries, sulfate pulp mills, petroleum refineries,
and sulfuric acid plants located in the 85 metropolitan areas.
Combined(()) estimates of the annual costs of achieving maximum control
of sulfur oxides and particulate emissions from these sources are shown
in Summary table 3.
SUMMARY TABLE 3. -- INDUSTRIAL PROCESS SOURCES: ESTIMATED
ANNUAL COSTS OF MAXIMUM CONTROL OF PARTICULATE EMISSIONS
AND SULFUR OXIDES CONTROL IN SELECTED INDUSTRIES IN 85
METROPOLITAN AREAS
(In millions of dollars)
FISCAL YEAR ..................... LOW ........ HIGH
1971 ........................... 41.7 ........ 82.3
1972 ........................... 73.3 ....... 137.4
1973 ........................... 74.5 ....... 139.8
1974 ........................... 76.5 ....... 140.8
In comparison with various measures of the economic status of the
industries covered in this report, the estimated costs of controlling
sulfur oxides and particulate emissions are small. The highest estimate
of annual costs of the electric power industry, as shown in table 9,
amounts to less than one-half of 1 percent of projected 1974 electric
operating revenues from plants serving the 85 metropolitan areas covered
in this report. The highest estimates of the annual costs of
controlling sulfur oxides and particulate emissions from the industrial
process sources covered in this report generally amount to less than 2
percent of each industry's projected 1974 value of shipments from plants
located in the 85 metropolitan areas. The sole exception is the sulfur
acid industry.
Estimates are also provided of the prospective costs to consumers for
control of motor vehicle pollution. These estimates are based on the
automobile industry's data on costs that have been or will be passed on
to new car buyers for compliance with national standards established by
the Department of Health, Education, and Welfare.
On the basis of the industry's data, it appears that buyers of
American-made 1968 and 1969 model passenger cars paid about $18 per car
for compliance with the national standards; that they can expect to pay
about $36 per car for compliance with the more stringent standards that
will take effect in the 1970 model year; and that an additional $12
cost will be passed on to consumers for compliance with the evaporative
emission limitations scheduled to take effect in the 1971 model year.
Additional operating and maintenance costs will be small.
Tables showing costs for each of the various industrial categories
are included in the body of the report. Tables 34-41, showing estimated
costs of controlling sulfur oxides and particulate emissions from fuel
combustion and industrial process sources in each of the 85 metropolitan
areas, appear in the appendix.(())
INTRODUCTION
PART 1: SCOPE OF THE REPORT
Air pollution is a national problem that poses a growing threat to
the American people and their environment. The causes and effects of
this problem are summed up in the preamble to the Air Quality Act, which
states, in part, "that the growth in the amount and complexity of air
pollution, brought on by urbanization, industrial development, and the
increasing use of motor vehicles, has resulted in mounting dangers to
the public health and welfare, including injury to agricultural crops
and livestock, damage to and the deterioration of property, and hazards
to ground and air transportation."
The task of restoring clean air to the Nation's cities and towns is
among the most urgent challenges of our times. It deserves and demands
greatly intensified research and control efforts by all levels of
government and by all segments of industry. Achieving clean air goals
will require, on one hand, greater application of existing techniques
for preventing and controlling air pollution, and, on the other, greater
efforts to fill the gaps in that technology.
Under the Air Quality Act, a national attack on the problem of air
pollution is underway. There are three major areas of attack --
adoption and implementation of air quality standards on a regional
basis, national regulation of motor vehicle pollution, and research and
development to meet needs for new and improved means of preventing and
controlling air pollution at its many sources.
A good start has been made in all three areas of attack. The
machinery for regional control of air pollution has been set in motion.
National standards for the control of air pollution from new motor
vehicles have been placed in effect. Research and development efforts
are beginning to close in on promising approaches to some of the
principal unsolved technical problems in air pollution control. These
activities have been documented in two reports to the Congress under the
Air Quality Act, /1/ /2/ and they are discussed to some extent in the
body of this report.
((/1/ "Progress in the Prevention and Control of Air Pollution."
First Report of the Secretary of Health, Education, and Welfare to the
U.S. Congress pursuant to Public Law 90-148, The Air Quality Act of
1967, U.S. Government Printing Office, Washington, D.C., June 1968.))
((/2/ "Progress in the Prevention and Control of Air Pollution,"
Second Report of the Secretary of Health, Education, and Welfare to the
U.S. Congress pursuant to Public Law 90-148, The Air Quality Act of
1967, U.S. Government Printing Office, Washington, D.C., January 1969.))
But despite the increasing tempo of air pollution research and
control activity, victory in the fight for clean air still is not in
sight. The next 5 years -- the period covered by this report -- can be
a time of significant progress, provided that both Government and
industry make a greater effort to fulfill their respective commitments
to the job of cleaning the Nation's air. Exactly how much this will
cost cannot be determined at this time. This report therefore does not
answer the question of what the total bill for clean air will be;
rather, it provides estimates of the cost of some of the research and
control(()) activities that must be undertaken by Government and
industry during the fiscal years 1970 through 1974.
Estimates of governmental costs reflect an assumption that Federal-
(Department of Health, Education, and Welfare) State-local budgeting
will rise at an average rate of about 30 percent a year during the next
5 years. This assumption is based mainly on consideration of needs for
program expansion and improvement, as discussed in chapter 1, and of
projected manpower requirements, as discussed in a separate report to
the Congress. /3/ A 30-percent annual rate of growth in public
expenditures clearly would produce a significant improvement in
governmental programs relating to the prevention and control of air
pollution.
((/3/ Report of the Secretary of Health, Education, and Welfare to
the U.S. Congress pursuant to Public Law 90-148, The Air Quality Act of
1967, to be submitted.))
In estimating costs to both government and industry, it has been
assumed that regulatory control efforts will be concentrated in air
quality control regions designated by the Department of Health,
Education, and Welfare under the Air Quality Act. It is for such
regions that State governments are expected to adopt air quality
standards and plans for implementation of the standards. They are
expected to take these steps with respect to each type of air pollutant
for which the Department issues air quality criteria and a report on
control techniques. Such documents were issued for sulfur oxides and
particulate matter on February 11, 1969. For the six air quality
control regions actually designated by February 11, the States involved
have 9 months from that date to establish air quality standards for
these two types of pollutants. They then will have an additional 6
months to adopt plans for implementation of the standards. For regions
designated after February 11, this 15-month timetable runs from the date
of designation.
For the purpose of estimating costs to industry, it has been assumed
that air quality control regions will have been designated in 85
metropolitan areas before the end of fiscal 1971 and that implementation
of air quality standards for sulfur oxides and particulate matter will
begin 18 months after designation. These 85 metropolitan areas were
selected solely for the purposes of this report. They do not
necessarily correspond to the areas in which air quality control regions
actually have been or will be designated. A list of the 85 areas and an
explanation of their relationship to the National Air Pollution Control
Administration's current plans for designation of air quality control
regions appears in part 2 of this introduction. As indicated in part 2
of this introduction, it has been assumed, for purposes of this report,
that implementation of air quality standards for sulfur oxides and
particulate matter will be underway in all of the 85 areas no later than
July 1971.
The economic impact on industry will depend in large measure on the
requirements that State governments actually establish for the control
of air pollution from industrial sources located in air quality control
regions. Such requirements will be a major element of States plans for
implementation of air quality standards in the regions. This report
provides estimates of the costs of controlling sulfur oxides and
particulate matter arising from fuel combustion and selected industrial
process sources located in the 85 areas listed in part 2. Since air
quality standards and implementation plans for these types of pollutants
have yet to be adopted under the Air Quality Act, these estimates can
be(()) only rough approximations based on various assumptions as to the
degrees of control that may be required and as to the techniques that
will be employed to comply with the requirements. These assumptions are
spelled out in the sections dealing with costs to industry.
Estimates of the costs to consumers of controlling air pollution from
passenger cars also are included in this report. These estimates are
based on information furnished by automobile manufacturers, i.e., on
manufacturers' data on costs that have been or will be passed on to new
car buyers for compliance with national standards already in effect or
scheduled to be placed in effect during the 1970/71 model years. The
estimates pertain only to American-made motor vehicles, which account
for some 90 percent of new motor vehicle sales in the United States.
In summary, this report provides the following cost estimates:
Federal-State-local governmental budgeting for air pollution control
during the fiscal 1970-74 period.
Expenditures by industry for the control of sulfur oxides and
particulate matter from fuel combustion and selected industrial process
sources located in 85 metropolitan areas.
Consumer expenditures for control of air pollution from American-made
motor vehicles in compliance with national standards already
promulgated.
PART 2: THE 85 METROPOLITAN AREAS
The National Air Pollution Control Administration has announced plans
for designation of air quality control regions in 57 areas. Thirteen
such regions actually had been designated as of June 1, 1969.
In this report, estimates of the industrial costs of controlling
sulfur oxides and particulate matter are presented for selected sources
in 85 metropolitan areas. They include 44 of the 57 areas already
earmarked for designation as air quality control regions. The other 41
areas include for designation as air quality control regions. The other
41 areas included in the 85 covered by this report were chosen on the
basis of population. Together, the 85 areas accounted for 84 percent of
the Nation's estimated metropolitan population in 1965.
Except in some cases, definitions of Standard Metropolitan
Statistical Areas, as set forth by the Bureau of the Budget, /4/ have
been used as boundaries of the 85 areas. The exceptions are as follows:
1. Where a Standard Metropolitan Statistical Area includes only a
part of a given county, the entire county has been included in the area
for purposes of this report.
2. The following areas consist of combinations of two or more
Standard Metropolitan Statistical Areas: Dallas-Forth Worth (Texas),
Seattle-Tacoma (Washington), and Harrisburg-Lancaster-Reading-York
(Pennsylvania).
((/4/ U.S. Executive Office of the President, Bureau of the Budget,
Standard Metropolican Statistical Areas, U.S. Government Printing
Office, Washington, D.C., 1967.))
The boundaries of the air quality control regions actually designated
will not necessarily be the same as the boundaries assumed for purposes
of this report.
The following table lists the 85 metropolitan areas. They are
divided into three groups based on assumed starting dates of
implementation of air quality standards for sulfur oxides and
particulate matter. Air quality control regions are scheduled to be
designated in all of the areas included in groups I and II and in those
marked with an asterisk (#) in group III.(())
Table 1. -- 85 Metropolitan Areas -- Assumed Starting Dates of
Implementation of Air Quality Standards
Group I (July 1970)
Washington, D.C.
New York
Chicago
Philadelphia
Denver
Los Angeles
St. Louis
Boston
Cincinnati
San Francisco
Cleveland
Pittsburgh
Buffalo
Kansas City
Group II (January 1971)
Detroit
Baltimore
Hartford
Indianapolis
Minneapolis-St. Paul
Milwaukee
Providence
Seattle-Tacoma
Louisville
Dayton
Phoenix
Houston
Dallas-Fort Worth
San Antonio
Birmingham
Toledo
Steubenville
Chattanooga
Group III (July 1971)
Albany
Albuquerque#
Allentown
Atlanta#
Bakersfield
Beaumont-Port Arthur#
Binghamton
Canton-Akron
Charlotte#
Charleston, S.C.
Columbia, S.C.
Columbus, Ohio
Corpus Christi
Davenport
Des Moines
Duluth-Superior
El Paso#
Flint
Fresno
Grand Rapids
Greensboro-High Point-Winston-Salem
Jacksonville
Johnstown, Pa.
Knoxville
Little Rock
Memphis#
Miami#
Mobile
Nashville
New Orleans#
Norfolk
Oklahoma City#
Omaha#
Orlando
Peoria
Portland, Oreg.#
Richmond
Rochester
Sacramento
Salt Lake City#
San Bernardino
San Diego
Shreveport
South Bend
Stockton
Syracuse
Tampa
Tucson
Tulsa
Wichita
Wilkes-Barre
Worcester
York-Harrisburg-Reading-Lancaster(())
CHAPTER 1: GOVERNMENT PROGRAMS AND COSTS
Over the past two decades, there has been steadily increasing
governmental involvement in the Nation's efforts to cope with the
growing problem of air pollution. The Department of Health, Education,
and Welfare, which began conducting air pollution research under
legislation encated in 1955, is now carrying on a comprehensive national
program of research and control activities and is providing financial
and technical support to State, local, and regional air pollution
control programs. State and local governments, which have the primary
responsibility for regulatory control of air pollution, have been
steadily expanding and improving their programs, especially since
mid-1964, when Federal financial support first became available.
Further expansion and strengthening of Government efforts must -- and
certainly will -- take place during the next 5 years. The purpose of
this chapter is to outline the probable course of governmental programs
and estimate the amounts of money that will be invested in those
programs. It has been assumed, for purposes of this report that there
will be increasing emphasis on regional efforts to deal with air
pollution, but that, otherwise, current patterns of governmental
involvement will not change materially, i.e., that Federal activities
will continue to be focused on implementation of the Air Quality Act and
its present form and that State and local governments will continue to
have the primary responsibility for prevention, abatement, and control
of community air pollution problems.
1.10 Federal activities
This section describes the activities of the National Air Pollution
Control Administration, which is responsible for carrying out the
Department's functions under the Air Quality Act.
The National Air Pollution Control Administration's program includes
six major areas of activity:
Implementing the act's provisions for regional control of air
pollution, including designation of air quality control regions,
development of air quality criteria and reports on control techniques,
and review of air quality standards and implementation plans adopted by
State governments.
Providing financial and technical support to State, local, and
regional air pollution control programs.
Training of manpower for work in air pollution control programs.
National regulation of air pollution from new motor vehicles.
Air quality surveillance.
Research and development pertaining to the nature and effects of air
pollution and to methods of preventing and controlling pollutant
emissions.
1.11 Regional control of air pollution
The Air Quality Act set up an intergovernmental system for the
prevention and control of air pollution on a regional basis. State(())
governments are expected to adopt and implement air quality standards on
a regional basis for those types of air pollutants for which the
Department issues air quality criteria (summarizing available scientific
knowledge of the adverse effects of air pollutants) and reports on
control techniques applicable to the sources of those pollutants. Air
quality standards and implementation plans must be submitted to the
Department of Health, Education, and Welfare for review.
This machinery has now been set in motion. On February 11, 1969, the
Secretary issued air quality criteria for two of the most important
types of air pollutants -- sulfur oxides and particulate matter.
Reports on techniques for preventing and controlling discharges of these
pollutants were issued at the same time. As of that date, the Secretary
had designated air quality control regions in six metropolitan areas;
New York, Chicago, Philadelphia, Los Angeles, Denver, and Washington,
D.C. As of June 1, 1969, regions also had been designated in the
Boston, St. Louis, Pittsburgh, Cincinnati, San Francisco, Buffalo, and
Cleveland metropolitan areas.
But these steps are just a beginning. There are many other areas
where regional action to deal with air pollution is vitally needed, and
there are many other types of pollutants that threaten the health and
welfare of people living in these areas. Full application of the Air
Quality Act to all of these places and problems will take more than
another 5 years, but between now and the end of fiscal 1974, it is
expected that marked progress will be made. The National Air Pollution
Control Administration's goal for the 5-year period is to complete the
designation of air quality control regions, encompassing about 90
percent of the Nation's metropolitan population and to have issued air
quality criteria and reports on control techniques for all of the more
important types of air pollutants. The NAPCA also will have to review
air quality standards and implementation plans adopted for air quality
control regions. This task will grow automatically as an increasing
number of air quality control regions is designated and as more
pollutants are drawn into the standard-setting process. Thus, keeping
the machinery for regional air pollution control action going will
require a constantly increasing effort.
1.12 Financial and technical assistance
The National Air Pollution Control Administration provides financial
assistance in the form of grants to State, local, and regional
governmental agencies to help them plan, develop, establish, improve,
and maintain effective programs for the prevention and control of air
pollution.
Awarding of grants began under provisions of the Clean Air Act of
1963, which authorized support for the development of new control
programs, establishment of programs already authorized by State or local
law, and improvement of existing programs. The first such grants were
awarded in September 1964. Authority to provide support for the
maintenance of ongoing programs that are moving toward the attainment of
established air quality goals was included in the 1966 amendments to the
Clean Air Act. Planning grants were authorized by the Air Quality Act
of 1967. The latter also authorized financial support of interstate air
quality planning activities.
The availability of grant funds clearly has been an important factor
in stimulating needed expansion and strengthening of State, local, and
regional air pollution control efforts during the past 5 years.(())
There can be no doubt that the progress of State, local, and regional
control activities during the next 5 years will depend in large part on
the continued availability of such financial support.
Technical assistance is provided for a variety of purposes, including
the development of air quality surveillance programs, design of emission
inventories, meteorological studies, data processing, development of
laws and regulations, and efforts to devise solutions to specific
technical problems. State, local, and regional agencies' needs for such
assistance can be expected to increase significantly during the next 5
years as they move ahead on the development and implementation of air
quality standards in air quality control regions.
1.13 Manpower development
The availability of sufficient numbers of personnel trained in
engineering, chemistry, meteorology, public administration, and other
occupational specialties is another factor that has a significant effect
on the ability of Federal, State, local, and regional agencies to meet
their responsibilities for the prevention and control of air pollution.
The National Air Pollution Control Administration helps to meet
manpower needs in three principal ways: First, by providing funds,
which State, local, and regional agencies can use to employ needed
personnel; second, by supporting undergraduate and graduate educational
programs to prepare individuals for careers in the field of air
pollution control; and third, by conducting short-term training courses
for governmental and industrial personnel whose work relates directly or
indirectly to air pollution control.
Governmental and industrial needs for additional manpower during the
next 5 years are the subject of an investigation which the National Air
Pollution Control Administration is currently conducting under section
305(b) of the Air Quality Act. A report on this investigation will be
submitted to the Congress in July 1969.
1.14 Motor vehicle pollution control
Under the 1965 amendments to the Clean Air Act, a start has been made
on dealing with the ubiquitous air pollution problems associated with
motor vehicles. The 1965 amendments authorized the Secretary of Health,
Education, and Welfare to establish and enforce national standards
applicable to new motor vehicles. The first such standards were placed
in effect for the 1968/69 model years. They prescribed limitations on
emissions of hydrocarbons and carbon monoxide from new, gasoline-fueled
passenger cars and light trucks. More stringent standards for these
same types of pollutants and vehicles have been promulgated for initial
application in the 1970 model year. Beginning in that same year, carbon
monoxide and hydrocarbon standards will be applied to gasoline-fueled,
heavy-duty vehicles, and limitations will be placed on discharges of
smoke from new diesel-powered trucks and buses. In the 1971 model year,
limitations will be placed on hydrocarbon emissions resulting from
evaporation of gasoline from carburetors and fuel tanks.
These steps will result in a reduction in the total amount of
hydrocarbons and carbon monoxide that the Nation's motor vehicles emit
into the air each year. This downward trend will continue through most
of the coming decade, but unless more stringent control is achieved
during that period, total emissions of carbon monoxide and hydrocarbons
will again begin to rise.(())
In addition to its responsibilities for developing emission standards
for motor vehicles, the National Air Pollution Control Administration
ordinarily tests prototype vehicles for compliance with the standards
and conducts surveillance testing of vehicles in use to evaluate the
performance of control equipment and investigate maintenance needs.
These activities are essential to a regulatory program; moreover, the
work involved automatically increases as standards are applied to more
types of vehicles and more pollutants and as the automobile industry
produces a wider selection of models for sale to the public.
1.15 Air quality surveillance
There must be a significant expansion of air quality surveillance
activities during the next 5 years. At present, there are relatively
few urban areas in which surveillance activities are even minimally
adequate. State, local, and regional agencies are expected to bear most
of the responsibility for air sampling and analysis, with the National
Air Pollution Control Administration providing financial and technical
assistance.
In addition, the National Air Pollution Control Administration will
have to expand its own air quality surveillance activities, primarily
because it must have its own yardstick for measuring the effectiveness
of State and local action, but also because its surveillance network
offers a means of evaluating new air quality measuring techniques and a
means of correlating data derived from State and local surveillance
activities. Expansion of the National Air Pollution Control
Administration's activities will involve increases in both the number
and capabilities of its air quality surveillance stations and in the
laboratory facilities needed for analytical work.
1.16 Research and development
There has been a substantial expansion of both governmental and
industrial research and development in the air pollution field during
the past several years. Further expansion is necessary to meet needs
for new or improved techniques for dealing with many significant sources
of air pollution and to provide improved scientific knowledge of the
adverse effects of air pollution.
In the area of control technology research and development, a
large-scale, national effort is already underway with respect to sulfur
oxides pollution control. This effort involves several Federal
departments and agencies and numerous industrial firms and other private
organizations; it is managed and coordinated by the National Air
Pollution Control Administration. It includes research and development
relating to techniques for desulfurizing fuels before they are burned
and for removing sulfur oxides from combustion and industrial process
stack gases; large-scale demonstrations of promising techniques;
studies of the availability of low-sulfur fuels; meteorological
studies; economic analyses; and other work. A 5 year (fiscal 1968-72)
plan for this program called for expenditures by the National Air
Pollution Control Administration of some $255 million. While actual
expenditures may be much lower, this figure provides an indication of
the magnitude of effort considered necessary in this area.
Large-scale research and development efforts are also needed with
respect to techniques for controlling other gaseous emissions from
stationary sources, particularly emissions of nitrogen oxides and
hydrocarbons. Also needed are efforts to develop new and more
economical means of controlling particulate emissions from
combustion(()) sources and a variety of industrial processes. The
National Air Pollution Control Administration's work in these areas will
be expanded during the next 5 years.
Efforts to find practical, long-range solutions to the problem of
motor vehicle pollution must continue to receive a high priority.
Though the Federal Government cannot be expected to duplicate the
research and development capabilities of the automobile industry,
Federal activity in this area is essential as a stimulus to industry
effort and as a means of determining the economic and technological
feasibility of complying with proposed national standards for the
control of motor vehicle pollution. The National Air Pollution Control
Administration's efforts in this area will include further work on means
of reducing pollutant emissions from the internal combustion engine and
on the development of alternative propulsion systems, particularly heat
engines.
Research relating to the adverse effects of air pollution on public
health and welfare is still another area in which intensified efforts
are necessary. There still are many gaps in scientific knowledge of the
effects of individual pollutants and combinations of pollutants on human
health. Of particular importance is the need for greater knowledge of
the relationships between pollutant exposures and the health of special
groups, such as very young and elderly persons, those affected by
chronic diseases, and persons who may have more than average exposure to
pollutants; the latter group includes persons who commute to and from
work in urban areas or whose occupations involve unusual opportunities
for pollution exposure. Knowledge of the economic effects of air
pollution also is still inadequate; more precise data are needed to
provide a sound, up-to-date basis for estimating the relationship
between the cost of controlling air pollution and the cost of failing to
control it.
1.20 State, local, and regional programs
A basic premise of all Federal legislation relating to air pollution
is that the primary responsibility for the prevention and control of air
pollution rests with State and local governments. Over the past several
years, State and local efforts to meet this responsibility have
increased substantially.
In 1961, only 17 States operated air pollution control programs with
annual budgets exceeding $5,000. Total expenditures by the 17 State
agencies were less than $2 million. Now, 46 States, the District of
Columbia, Puerto Rico, and the Virgin Islands are engaged in control
activities, and State expenditures (including Federal grant support)
have increased to approximately $17.6 million a year.
In 1961, there were 85 local air pollution control agencies with
total annual expenditures of slightly more than $8 million. Now, there
are about 142 such agencies, and their annual expenditures (including
Federal grant support) have reached about $29.7 million.
In 1961, most local agencies served only a single municipality. Now,
many of them are county or city-county agencies serving two or more
municipalities. A few agencies have multicounty jurisdictions. Thus,
in addition to expansion of local air pollution control efforts, there
has been some progress in the direction of regional control activity.
This expansion and strengthening of State, local, and regional air
pollution control efforts must continue, for the majority of places(())
affected by air pollution problems still are not served by fully
adequate control programs. No doubt, it will continue, though the rate
at which needed improvements are made clearly will depend in part on the
extent of available Federal support.
State governments will play an increasingly important role in dealing
with air pollution. For one thing, they are expected to take the
initiative in adopting and implementing air quality standards for air
quality control regions. They can and, in many regions, they
undoubtedly will rely on local and regional agencies to carry on
enforcement, air monitoring, and other necessary activities, but it will
be a State responsibility to coordinate such efforts and to furnish
needed technical and/or financial support. In addition, State
governments will continue to have the primary responsibility for dealing
with air pollution in places that are not included in air quality
control regions and not served by local or regional control programs.
In most urban areas, whether within or outside of air quality control
regions, local and regional agencies undoubtedly will continue to have a
major share of the responsibility for actual operation of air pollution
control programs. The trend toward consolidation of local efforts into
regional programs is certain to continue at an accelerated pace.
Expenditures for State, local, and regional programs during the next
5 years will be influenced not only by the availability of funds but
also by three other factors: First, the need for expansion and
improvement of control activities, involving such things as obtaining
more precise information on air quality and emissions, development of
air quality standards and implementation plans, and responding to public
and industry interest in having access to information on air pollution
problems and projected control programs; second, the need to recruit
additional staff and the related need to offer salaries that are
sufficient to attract high-caliber personnel; and third, the need for
air pollution control agencies to become increasingly involved in urban
area planning to insure that air quality considerations are taken into
account.
1.30 Projection of governmental expenditures
Table 2 shows estimated governmental expenditures for air pollution
research and control in fiscal years 1969 through 1974. Estimated
expenditures for all of the various types of activities discussed above
have been allocated to either research and development or abatement and
control; air quality surveillance, for example, is considered a
function of abatement and control programs. The figures in table 2
include estimated expenditures by all Federal agencies for abatement and
control of air pollution arising from facilities they own and operate;
expenditures for research and development by agencies other than the
National Air Pollution Control Administration are not included.
TABLE 2. -- ESTIMATED GOVERNMENTAL PROGRAM CO S (In millions of
dollars)
.......................... Functional classifications
........................ Research and . Abatement and
. Fiscal year ............ development ....... control ... Total
1969 ............................ 47.0 .......... 75.9 ... 122.9
1970 ............................ 61.1 .......... 98.5 ... 159.6
1971 ............................ 79.4 ......... 128.0 ... 207.4
1972 ........................... 103.1 ......... 166.2 ... 269.3
1973 ........................... 134.0 ......... 216.0 ... 350.0
1974 ........................... 174.2 ......... 280.3 ... 454.5
. Total ........................ 598.8 ......... 964.9 . 1,563.7
(())
CHAPTER 2: COSTS TO INDUSTRY
This chapter presents estimates of the future costs of controlling
sulfur oxides and particulate emissions from fuel combustion and
selected industrial processes in the 85 metropolitan areas covered by
this report.
Future costs are defined as the estimated costs of achieving further
control -- over and above current control -- of sulfur oxides and
particulate emissions. Since no such requirements have been established
thus far under the Air Quality Act, the estimates presented in this
chapter relate to the prospective costs of achieving alternative levels
of control approximating those required by some of the more advanced
State and local regulations currently in effect.
The sources for which cost estimates are presented are major sources
of sulfur oxides and/or particulate matter and therefore are quite
likely to be those primarily affected by control requirements
established for the purpose of implementing air quality standards.
All estimates presented in this chapter are based on the assumption
that control will be achieved through the application of techniques
already in use. This assumption excludes alternative techniques that
may be available now or become available during the next 5 years. To
the extent that alternatives are potentially more cost-effective than
are the techniques already in use, actual costs of control would be less
than those projected in this report.
Where applicable, both investment and annual costs have been
estimated. Investment cost includes the purchase price of control
equipment and installation costs. Annual cost is the sum of
depreciation of the investment cost, capital-related costs (such as
interest, property taxes, and insurance), and operating and maintenance
costs. Investment and annual costs are not additive. The total cost to
an industry over the period covered by this report is the sum of the
estimated annual costs.
In most instances, a range of costs, rather than a single figure, is
presented. This approach reflects the fact that the costs of air
pollution control equipment and installation, operating, and maintenance
costs vary from one plant to another and/or from one geographical area
to another. The range of such variation is reflected in the reported
"high" and "low" estimates of costs to industry.
2.10 Estimating costs for combustion sources
There are three general approaches to the control of sulfur oxides
and/or particulate emissions arising from fuel combustion -- fuel
changes, stack gas cleaning, and improvements in combustion efficiency.
Fuel changes include both fuel substitution and fuel switching. Fuel
substitution is defined as replacement of one fuel with another of the
same type (e.g., substitution of low-sulfur coal for high-sulfur coal).
Fuel switching is defined as replacement of one fuel with another(()) of
a different type (e.g., switching from coal to oil or natural gas). To
the extent that cost estimates are based on fuel changes, they are based
only on fuel substitution (including the use of fuels that are naturally
low in sulfur and those from which a portion of the sulfur has been
removed).
Stack gas cleaning is applicable to the control of both sulfur oxides
and particulate emissions, but currently it is widely applied only for
controlling the latter. For purposes of this report, then, the use of
stack gas cleaning techniques at fuel-burning sources was considered
only for the control of particulate emissions.
Frequently, particulate emissions can be reduced by improving
combustion efficiency. This approach actually can result in cost
savings. For purposes of this report, however, it is assumed that the
best possible combustion is being achieved and that no further
reductions in particulate emissions can be made by this approach.
In short, the reported estimates for combustion sources are based on
the assumptions that all reductions in sulfur oxides emissions will be
achieved through fuel substitution and that all reductions in
particulate emissions will be achieved through stack gas cleaning.
Estimates of the cost of controlling sulfur oxides emissions arising
from fuel combustion are presented for electric power generating
stations, industrial facilities, and commercial facilities (not
including apartment houses).
Estimates of the cost of controlling particulate emissions arising
from fuel combustion are presented for coal-burning powerplants and
industrial facilities.
2.11 Estimating sulfur oxides control costs
As indicated above, estimates of the cost of controlling sulfur
oxides emissions arising from fuel combustion relate to projected use of
low-sulfur coal in place of high-sulfur coal or low-sulfur fuel oil in
place of high-sulfur fuel oil. Estimates are provided for the following
alternatives:
High-sulfur fuel to low-sulfur coal (maximum of 0.8 to 0.9
percent sulfur) or fuel oil containing no more than 1.5 percent
sulfur.
High-sulfur fuel to low-sulfur coal (maximum of 0.8 to 0.9
percent sulfur) or fuel oil containing no more than 1.0 percent
sulfur.
For purposes of this report, the cost of fuel substitution was
defined as the difference between current fuel expenditures and the
expenditures required to obtain low-sulfur fuels providing the same net
heat input. Data on fuel prices and sulfur and ash content were derived
from a survey made for the National Air Pollution Control Administration
in 1968. /5/ Fuel price differences were calculated from these data;
no attempt was made to anticipate price changes during the next 5 years.
From these data, the 48 contiguous States were grouped into 14 areas
based on similarity of fuel price patterns. Table 3 shows the grouping
of States.
((/5/ Ernst and Ernst, "The Fuel of Fifty Cities," report prepared
for Department of Health, Education, and Welfare, National Air Pollution
Control Administration, Washington, D.C., 1968.))(())
Table 3. -- Fuel Price Areas
1. Maine
New Hampshire
Vermont
Massachusetts
Connecticut
Rhode Island
2. New York
New Jersey
Pennsylvania
3. Delaware
Maryland
District of Columbia
4. Ohio
West Virginia
Kentucky
5. Virginia
North Carolina
South Carolina
6. Tennessee
Florida
Georgia
Alabama
Mississippi
7. Illinois
Indiana
Michigan
8. Minnesota
Wisconsin
North Dakota
South Dakota
9. Iowa
Missouri
Nebraska
Kansas
10. Oklahoma
Texas
Arkansas
Louisiana
11. Washington
Oregon
Idaho
Montana
12. Wyoming
Utah
Colorado
13. California
Nevada
14. Arizona
New Mexico
Fuel substitution costs for power plants and commercial facilities
were estimated separately for each of the 14 fuel price areas, based on
typical fuel prices and fuel consumption in each area.
2.12 Estimating particulate control costs
Estimates of the cost of controlling particulate emissions from
coal-burning powerplants and industrial facilities were developed by
extrapolating from estimated costs for a hypothetical unit plant. This
procedure is explained in section 2.20.
Estimates of the costs of controlling sulfur oxides and particulate
emissions from fuel combustion sources are presented in detail in
sections 2.31 through 2.33.
2.20 Estimating industrial process control costs
Estimates are presented in this report for the costs of controlling
particulate emissions arising from seven major categories of industrial
process sources -- sulfate (kraft) pulp mills, sulfuric acid
manufacturing plants, petroleum refineries, asphalt batching plants,
hydraulic cement manufacturing plants, integrated steel mills, and gray
iron foundries. Two of these industrial processes -- sulfuric acid
manufacturing and petroleum refining -- also are significant sources of
sulfur oxides pollution; control costs applicable to these sources are
presented. Primary nonferrons metal smelters are the only major
industrial process source of sulfur oxides and particulate emissions for
which estimates are not presented; there are only 10 such
establishments in the 85 metropolitan areas covered by this report.(())
The methodology used in estimating costs of controlling particulate
emissions from industrial process sources is described in this section.
The methodology used in estimating costs of controlling sulfur oxides
emissions is described in the sections dealing with the two industrial
process sources (sulfuric acid manufacturing and petroleum refining) for
which such estimates are presented.
For control of particulate emissions, estimates are given for
achieving 80 percent, 90 percent, and maximum (97-99+ percent) overall
control efficiency. Overall control efficiency is defined as the amount
of emissions after control is applied, divided by the amount that would
be emitted if no control were applied.
For the purposes of this report, it has been assumed that all control
of particulate emissions from industrial process sources will be
achieved through the application of stack gas cleaning equipment (e.g.,
electrostatic precipitators, cyclones, wet scrubbers, fabric filters).
The cost of acquiring and using such equipment is made up of capital,
operating, and maintenance costs. As estimated here, capital costs
include the following:
1. The cost of purchasing control equipment and auxiliary hardware,
such as ducting and fans. Purchase cost generally is related to the
volume and rate of flow of gases to be cleaned and to the collection
efficiency of the control equipment.
2. The cost of installing the equipment and preparing it for
operation. Installation cost may range from 50 to 400 percent of
purchase cost.
3. An allowance for capital-related costs, such as interest,
property taxes, and insurance. This is explained below.
Purchase and installation costs (but not capital-related costs) make
up what is referred to in this report as investment cost.
This report also presents estimates of annual costs, which include
depreciation of investment costs, plus capital-related, operating, and
maintenance costs spread over the assumed economic life of a piece of
air pollution control equipment. For this report, investment cost is
placed on annual basis by depreciating over a 15-year period (using the
straight-line method of depreciation). An amount equal to depreciation
has been included as an allowance for capital-related costs.
No explicit allowance has been made for the possible scrap value of
control equipment, investment tax credits, or economic factors specific
to various localities, such as exemptions from State or local property
taxes.
Annual operating costs depend, in general, on the efficiency of
collection, hours of operation, and costs of the electric power
necessary for operation of the collection equipment.
Annual maintenance costs are assumed to be roughly proportional to
the gas volume handled.
All estimates of the costs of controlling particulate emissions from
industrial process sources were developed by figuring costs for a
hypothetical unit plant in each source category and then extrapolating
to the total capacity of such plants in the 85 areas.
The unit-plant for each of the seven industrial process sources is an
abstraction developed solely for the purpose of estimating pollution
control costs. It consists of a listing of those parts of the
production process that had to be taken into consideration in making
cost estimates,(()) a description of the assumed technical
characteristics of the process that are relevant to the selection of
control techniques, and a description of the control techniques to be
applied. Those parts of the production process listed for each industry
generally are the major sources of particulate and or sulfur oxides
emissions. Assumed technical characteristics are as close to industry
averages as could be determined.
The costs of achieving various levels of overall control efficiency
at each unit plant were determined from assumptions about the volumes
and rates of gas flow to be cleaned and about annual hours of operation.
Capacity and value of shipments for each of the seven industrial
process sources in the 85 areas for the years 1971-74 were projected on
the basis of data on industrial location and growth rates.
After unit-plant cost was determined for each of the seven industrial
process sources, this figure was multiplied by the number of unit-plant
equivalents located in the 85 metropolitan areas. The number of
unit-plant equivalents was derived by dividing unit-plant capacity into
the total industry capacity in the 85 areas.
The cost figures obtained in this way then were adjusted downward to
reflect the fact that emissions from some plants in each of the seven
industrial process categories already are under some degree of control.
Thus, the expenditures necessary to achieve a given level of overall
control efficiency presumably are less than they would be if current
emissions were under no control. No explicit credits were given for
possible byproduct recovery values; omission of such credits
contributes to an upward bias in the cost estimates.
2.30 Allocation of costs
As explained above, costs within each industry category (e.g.,
steam-electric powerplants, steel mills, etc.) were estimated by
extrapolating from fuels data or unit plant cost figures. An allocation
process then was used to assign a portion of the total estimate in each
industry category to each of the 85 metropolitan areas covered by this
report.
In general, costs were allocated in accordance with the ratio of an
area's fuel consumption to national fuel consumption or the ratio of an
industry's capacity in an area to national capacity of that industry.
There were some exceptions to this procedure; in the cases of fuel
substitution (sulfur oxides control) costs for powerplants and
commercial facilities and process control costs in the asphalt batching
industry, allocation was based on population ratios.
In all instances, estimated costs were spread over the fiscal years
1971-74 in accordance with the assumed starting dates of implementation
of air quality standards in the 85 areas, as set forth in table 1.
Where implementation is assumed to begin in July 1971, fiscal 1972 is
the first year for which costs are shown.
2.40 Cost Estimates for combustion sources
Estimates of control costs for the three major classes of fuel users
-- steam-electric power generating stations, industrial facilities (in
which fuel is burned to produce heat and electric power, generally for a
single plant or an industrial complex), and commercial facilities -- are
presented in this section.(())
2.41 Steam-electric power generation
Steam-electric powerplants in the United States are the largest class
of consumers of bituminous coal and a major consumer of fuel oil and
natural gas. Consumption of the four major types of fuel by power
plants in the years 1958-1967 is shown in table 4. The data indicate
that coal accounted for over 60 percent of fuels consumed by
steam-electric powerplants in 1967.
TABLE 4. -- FUEL CONSUMPTION BY STEAM-ELECTRIC POWERPLANTS 1958-67
(Trillion B.t.u. consumed)
GRAPHIC OMITTED
Because of their heavy consumption of coal and, to a lesser degree,
of residual fuel oil, power plants are a major source of both sulfur
oxide and particulate air pollution. Steam-electric powerplants
discharged an estimated 14 million tons of sulfur oxides to the
atmosphere in 1966. This represented 62.5 percent of sulfur oxides
emissions from stationary fuel combustion sources and 48.4 percent of
sulfur oxides emissions from all sources. At the same time, power
plants accounted for an estimated 2.2 million tons of particulate
emissions. This represented 47.8 percent of the particulate matter
emitted from stationary combustion sources and 24.7 percent of
particulate emissions from all sources. The particulate matter from
powerplants consists principally of flyash from coal combustion.
The use of fossil fuels, mainly coal and oil, that contribute most
heavily to air pollution has been increasing. Between 1947 and 1965
power plant consumption of coal and fuel oil grew at the following
annual rates: /6/
............................ Growth rate/yr.
Fuel: ...................... percent 1947-65
. Coal ......................... 5.9
. Fuel oil ..................... 2.6
((/6/ Morrison, Warren E. and Charles L. Readling. "An Energy Model
for the United States. Featuring Energy Balances for the Years 1947 to
1965 and Projections and Forecasts to the Years 1980 and 2000." U.S.
Department of the Interior, Bureau of Mines, Information Circular
Section 384, U.S. Government Printing Office, Washington, D.C., 1968, p.
88.))
The use of coal and oil is almost certain to continue to increase,
despite gains by gas. Powerplant consumption of coal and residual and
distillate fuel oil was projected for the years 1968 through 1974.(())
The projections assumed 5.7 percent annual growth in coal and 5.0
percent annual growth in residual fuel oil. The resulting projections
are shown in table 5.
Sulfur Oxides Control. -- Fuel use projections were used as the basis
for estimating the cost of fuel substitution for the control of sulfur
oxides emissions from powerplants.
In 1967, there were 926 power plants in operation in the contiguous
48 States. /7/ As explained in Sec. 2.11, the 48 States were grouped
into 14 fuel price areas on the basis of similar fuel cost patterns for
the purpose of estimating fuel substitution costs. Table 6 shows the
number of plants in each of the 14 fuel price areas in 1967, their
sizes, and their fuel consumption.
((/7/ National Coal Association, "Steam Electric Power Plant Factors,
1968," Washington, D.C., pp. 49-50.))
TABLE 5. -- PROJECTED COAL AND FUEL OIL CONSUMPTION BY STEAM-ELECTRIC
POWERPLANTS, 1968-74
.................. Trillion B.t.u. consumed
.............................. Residual .. Distillate
. Year ............. Coal .... fuel oil .... fuel oil
1968 ............ 6,801.6 ....... 980.2 ........ 22.1
1969 ............ 7,189.3 ..... 1,029.2 ........ 22.0
1970 ............ 7,599.1 ..... 1,080.6 ........ 21.8
1971 ............ 8,032.1 ..... 1,434.7 ........ 21.7
1972 ............ 8,490.0 ..... 1,191.4 ........ 21.6
1973 ............ 8,974.0 ..... 1,250.9 ........ 21.5
1974 ............ 9,485.5 ..... 1,313.5 ........ 21.4
In order to estimate the costs of sulfur oxides control, fuel use was
projected for the 14 fuel price areas on the assumption that the
relative distribution of fuel use by fuel price area that existed in
1967 would continue throughout the 1970-74 period.
Incremental costs of fuel substitution to powerplants, based on the
projected future B.t.u. requirements for the major fuel types, were
estimated for the two fuel substitution alternatives considered in this
report. Fuel costs were first estimated on fuel price area basis.
Average fuel prices for each area were used as a basis for estimating
the incremental costs of fuel substitution.
Particulate Control. -- In estimating costs of particulate controls,
ranges of investment and annual costs of controlling particulate
emissions from coal-fired utility furnaces to levels of 80, 90, and the
maximum percent of overall control efficiency were developed for a
powerplant unit of typical size.
The unit plant was assumed to be rated at 225,000-kilowatt capacity
and to operate 8,400 hours annually. At capacity, the unit plant was
assumed to require fuel input at an annual rate of 21,000 billion B.t.u.
The aggregate stack gas flow rate of this plant when fired at capacity
was assumed to be approximately 900,000 cubic feet per minute.(())
TABLE 6. -- STEAM-ELECTRIC POWERPLANTS BY FUEL PRICE AREA 1967
GRAPHIC OMITTED
Current levels of particulate control among coal-fired utility
boilers were assumed to be as follows: /8/
................................................. Level of control
Percent of coal-fired boilers controlled: .......... (Percent)
. 3 .............................................. Less than 80.
. 32 ............................................. 80 to 89.
. 52 ............................................. 90 to 96.
. 13 ............................................. Maximum.
((/8/ Estimated from Moore, William W., "Reduction in Ambient Air
Concentration of Fly-Ash -- Present and Future Prospects," Proceedings:
The Third National Conference on Air Pollution, 1966, U.S. Department of
Health, Education, and Welfare, Washington, D.C., 1967, p. 174.))
Coal-burning, steam-electric powerplants generally use one of two
types of furnaces -- pulverized coal or cyclone furnaces. The great
majority of plants (about 90 percent) use the pulverized coal type.
Accordingly, two sets of particulate control costs for the unit plant
were developed: one set for each of the two types of furnaces --
pulverized coal and cyclone. This was necessary because the two types
of furnaces require the application of different control devices or
combinations of control devices to achieve a given level of control.
The control devices costed for each of the two furnace types to the
three levels of efficiency under consideration were as follows:
............................................................. OVERALL
............................................................. CONTROL
.......................................................... EFFICIENCY
. FURNACE TYPE .... CONTROL DEVICE(S) ..................... (PERCENT)
Pulverized coal ... High efficiency cyclone .................. 80
Cyclone ........... Medium efficiency cyclone and medium
..................... efficiency electrostatic precipitator.
Pulverized coal ... Medium efficiency cyclone and low ........ 90
..................... efficiency electrostatic precipitator.
Cyclone ........... Medium efficiency cyclone and high
..................... efficiency electrostatic precipitator.
Pulverized coal ... Medium efficiency cyclone and high ....... Maximum
..................... efficiency electrostatic precipitator.
Cyclone ........... High efficiency cyclone and high efficiency
..................... electrostatic precipitator.
The control costs obtained, weighted by the distribution percentage
of each type of furnace among powerplants, then were combined to(())
obtain cost figures for the unit plant. The estimated ranges of
investment and annual costs of controlling particulates in the unit
plant are shown in table 7.
TABLE 7. -- STEAM-ELECTRIC POWER PLANTS UNIT BOILER COSTS FOR
CONTROLLING PARTICULATES (In thousands of dollars)
GRAPHIC OMITTED
Estimated Cost of Control. -- The annual and investment costs for the
unit steam-electric plant then were expanded in proportion to the
project kilowatt capacity of all coal-fired plants for each of the
fiscal years under study.
Table 8 presents total costs of controlling powerplant emissions of
sulfur oxides and particulate pollution in fiscal years 1971-74 in the
85 metropolitan areas.
TABLE 8. -- STEAM-ELECTRIC POWER GENERATION: ANNUAL COST
OF MAXIMUM CONTROL OF PARTICULATE EMISSIONS AND 2 LEVELS
OF CONTROL OF SULFUR OXIDES (IN 85 METROPOLITAN AREAS),
FISCAL YEARS 1971-74
GRAPHIC OMITTED
2.42 Industrial fuel combustion
In 1966, industrial fuel combustion for heat and power generation
resulted in discharges of an estimated 1.5 million tons of particulates.
This was 32.6 percent of particulates emitted from all stationary
combustion sources and 16.9 percent of particulates from all sources.
The particulate matter consisted principally of flyash from coal
combustion.
Industrial fuel combustion sources also discharged an estimated 6.4
million tons of sulfur oxides to the atmosphere in 1966. This
represented 28.6 percent of all sulfur oxides emissions from stationary
combustion sources and approximately 22.1 percent of sulfur oxides from
all sources.
Fuel consumption by industrial users in the years 1958-65 is shown in
table 9. Historically, among industrial facilities (not including
steam-electric powerplants), there has been a shift in demand from coal
and oil to gas and electric energy. Growth in total industrial energy
requirements has been met largely by energy sources other than coal.
GRA OTH
691016
SECRETARY OF HEALTH, EDUCATION, AND WELFARE
--
US CONGRESS
AIR QUALITY ACT OF 1967, THE COST OF CLEAN AIR FIRST REPORT IN
COMPLIANCE WITH PUBLIC LAW 90-148 THE AIR QUALITY ACT OF 1967 (CONTINUED
PAGE 1811 TO 1841)
--
--
--
--
CA091185 CA091215
00533
(())
TABLE 9. -- INDUSTRIAL FUEL CONSUMPTION, 1958-65
GRAPHIC OMITTED
TABLE 10. -- PROJECTED INDUSTRIAL FUEL CONSUMPTION, 1969-74
...................................... Trillion B.t.u.
........................................... Distillate ... Residual
. Year ........................... Coal ..... fuel oil ... fuel oil
1969 ............................. 5,512 ......... 314 ...... 1,191
1970 ............................. 5,518 ......... 316 ...... 1,215
1971 ............................. 5,523 ......... 317 ...... 1,240
1972 ............................. 5,529 ......... 320 ...... 1,265
1973 ............................. 5,534 ......... 321 ...... 1,291
1974 ............................. 5,540 ......... 323 ...... 1,317
Projections of the national industrial demand for coal and residual
and distillate fuel oil for the years 1969 through 1974 were based on
extrapolations from data in table 9 and are given in table 10. These
projections provided a basis for estimating total consumption of fuel by
industries in the 85 metropolitan areas. The proportions of total fuel
consumption by industries in each area were based on U.S. Department of
Commerce data. /9/ It was assumed that in each projected year,
industrial consumption in each region would constitute the same relative
proportion of the national industrial total of a particular fuel type as
it did in 1962, the latest year for which a fuel consumption breakdown
by industry is available.
((/9/ U.S. Department of Commerce, Bureau of Census, Census of
Manufacturers, 1963, Vol. I, Summary and Subject Statistics, U.S.
Government Printing Office, Washington, D.C., 1966, pp. 7-116 to
7-135.))
Sulfur oxide control. -- Sulfur oxides control cost estimates were
based on the projected future B.t.u. requirements for coal and oil.
Representative national prices were assumed for the various fuels.
Particulate Control. -- With respect to coal-fired industrial
boilers, it was estimated that in 1966 one-half of stoker-fired units
were equipped with mechanical collectors performing at approximately
90-percent particulate removal efficiency, and that one-half operated
with cinder traps or no collectors at all at an average efficiency of 20
percent. As to palverized coal industrial boilers, it was estimated
that in 1966 approximately three-fourths were equipped with mechanical
collectors at 70-percent efficiency and one-fourth with electrostatic
precipitators at an average efficiency of 90 percent. /10/ Since no
information was available on the extent of cyclone furnace control, they
were assumed to be uncontrolled. Finally, it was assumed that the
current level of particulate control among industrial fuel users is the
same as that existing in 1966.
((/10/ Moore, William W., op. cit., pp. 171-173.))(())
The ranges of investment and annual costs of controlling particulates
from coal-fired industrial furnaces to levels of 80, 90, and 98 percent
of uncontrolled emissions were developed for an industrial boiler of
typical size.
This typical boiler was assumed to be rated at 1,700 horsepower and
to be in operation approximately 6,570 hours per year. It was assumed
to require fuel input at an annual rate of 464 billion B.t.u. with
utilization at 60 percent of boiler capacity and with 85 percent burning
efficiency of coals. The stack gas flow rate of this furnace was
assumed to be approximately 36,000 cubic feet per minute when fired at
capacity.
Three separate sets of costs for the model furnace were developed
initially: one set for each of three methods of stoking -- pulverized
coal, stoker, and cyclone. This was necessary because the three types
of industrial furnaces require different control devices to achieve a
given overall control efficiency.
The control devices costed for each of the three furnace types to the
three levels of efficiency under consideration were as follows:
GRAPHIC OMITTED
The three sets of costs obtained, weighted by the following national
distribution percentage of each type of industrial boiler, /11/ then
were combined into the cost for the typical furnace.
........................................ Distribution
Furnace type: ............................ percent
... Pulverized .............................. 20
... Stoker .................................. 70
... Cyclone ................................. 10
((/11/ Moore, William W., op. cit., p. 171.))
Table 11 shows the estimated investment and annual costs of
controlling particulate emissions from the unit industrial boiler.
TABLE 11. -- INDUSTRIAL HEAT AND POWER UNIT, BOILER COSTS FOR
CONTROLLING PARTICULATES
GRAPHIC OMITTED(())
The investment and annual costs for the typical coal fired industrial
furnace then were expanded in proportion to the projected industrial
coal consumption in each of the 85 metropolitan areas for each of the
fiscal years under study.
Table 12 presents the total estimated costs of controlling industrial
sources of combustion emissions in fiscal years 1971-74 for the 85
areas. It should be noted that the costs presented are the annual costs
of fuel substitution alternatives, as shown, and of stack gas cleaning
systems to achieve particulate control efficiency.
TABLE 12. -- INDUSTRIAL FUEL COMBUSTION ANNUAL COST OF MAXIMUM CONTROL
OF PARTICULATE EMISSIONS AND 2 LEVELS OF CONTROL OF SULFUR OXIDES (IN 85
METROPOLITAN AREAS) FISCAL YEARS 1971-74
GRAPHIC OMITTED
2.43 Commercial fuel combustion
The combustion of fuel in commercial and residential sources resulted
in emissions of 2 million tons of sulfur oxides and 900,000 tons of
particulate matter in 1966. These emissions constituted 6.9 percent of
the national total of sulfur oxides pollution and 10.1 percent of the
national particulate emissions.
Estimates of commercial users' consumption of fuels are shown in
table 13.
TABLE 13. -- COMMERCIAL FUEL CONSUMPTION 1965-67
GRAPHIC OMITTED
Commercial use of coal, residual and distillate fuel oil, and natural
gas for the years 1968-74 was projected by applying a 3.5-percent annual
growth factor to the data shown in table 13. Though consumption of coal
by commercial users has been declining, a reversal of this trend is
expected. For the purpose of this report, it was assumed that the
upturn began in 1968. The projections are shown in table 14.
National fuel consumption projections were broken down on a
fuel-price area basis to enable a cost analysis to be based on area fuel
prices. It was assumed that the relative distribution of consumption in
the various fuel-price areas in 1967 would continue throughout the
projection period. Estimates of the costs of fuel substitution were
based on projected requirements of the four fuel types.(())
TABLE 14. -- PROJECTED COMMERCIAL FUEL CONSUMPTION. 1968-74
GRAPHIC OMITTED
Table 15 presents the estimated total costs of fuel substitution to
control sulfur oxides emissions from commercial combustion sources in
the 85 metropolitan areas.
TABLE 15. -- COMMERCIAL COMBUSTION SOURCES: ANNUAL COSTS
TO CONTROL SULFUR OXIDES (IN 85 METROPOLITAN AREAS)
FISCAL YEARS 1971-74
...................................... Maximum
............................... sulfur content ... Annual cost
. Fiscal year ...................... (percent) .. (in millions)
1971 ..................................... 1.5 ......... $29.8
1972 ..................................... 1.5 .......... 38.2
1973 ..................................... 1.5 .......... 39.4
1974 ..................................... 1.5 .......... 40.5
1971 ..................................... 1.0 .......... 54.5
1972 ..................................... 1.0 .......... 70.5
1973 ..................................... 1.0 .......... 73.0
1974 ..................................... 1.0 .......... 75.5
2.50 Industrial process control costs
This section presents the estimated investment and annual costs of
controlling particulate emissions from plants making iron and steel,
asphalt, hydraulic cement, gray iron, and sulfate pulp and of
controlling particulates and sulfur oxides from petroleum refineries and
sulfuric acid plants.
2.51 Integrated steel mills
Integrated steel mills produced 127 million tons of steel in 1967
with a value of shipments of $22.2 billion. /12/ Steel industry output
is assumed to grow at the same rate as the gross national product and
reach a 1974 production of 168 million tons with a value of shipments of
$29.3 billion. Currently, about 58 percent of the industry's capacity
is estimated to be located in the 85 metropolitan areas. /13/ It was
assumed that these areas will account for the same proportion (58
percent) of industry value of shipments in 1974; thus, the projected
value of shipments is $17 billion.
((/12/ U.S. Bureau of Census, Annual Survey of Manufacturers; 1966,
General Statistics for Industry Groups and Industries, M66 (AS)-1, U.S.
Government Printing Office, Washington, D.C., 1967, p. 14.))
((/13/ American Iron and Steel Institute, Directory of Iron and Steel
Works of the United States and Canada, New York, 1967.))
In 1966, the steel industry's emissions of particulates amounted to
900,000 tons, or 10.1 percent of the national total. The industry also
emitted about 415,000 tons of sulfur oxides.
Control cost estimates were prepared only for the control of
particulate pollution. Sulfur oxides control costs were not estimated
because the fuels generally burned in the process portion of the steel
industry are already below one percent sulfur content for metallurgical
reasons.
Particulate pollution from production of steel comes from sinter
plants, open hearth furnaces, basic oxygen furnaces, and electric
furnaces. It should be noted that blast furnaces, which are used to
reduce iron ore to pig iron, are not a significant source of air
pollution.(()) The exhaust gases from blast furnaces are normally
cleaned to a high degree and recycled to be consumed as a fuel.
Consequently, the cost of blast furnace gas cleaning is not considered
part of the cost of air pollution control.
In 1967, there were 976 steelmaking furnaces in the industry. /14/
Of these, 581 were open hearth furnaces, of which approximately 25
percent had 90-percent control. Electric furnaces numbered 344, and a
quarter of them also were controlled to 90 percent. There were 51 basic
oxygen furnaces, of which 95 percent were under 90-percent control. It
is common practice to have a high degree of particulate control in
existing sintering plants. Thus, only new, rather than existing,
sintering plants were considered in estimating future control costs.
((/14/ (bp).
Given the projection of total steel production and the extent of
existing control, it is estimated that the following numbers of process
sources will need to be controlled by 1974 in the 85 metropolitan areas.
Source: ................................................ Number
. Open hearth furnaces ............................... 75-100
. Basic oxygen furnaces .............................. 50-60
. Electric furnaces .................................. 70-80
. Sinter plants ......................................... 15
Open hearth capacity is expected to decline; however, attrition is
not assumed to eliminate all uncontrolled open hearths. Accordingly,
the cost estimates developed for this report reflect the contingency
that some of the remaining open hearths will require control. The
characteristics of three types of unit furnaces are outlined below:
Open hearth furnace:
. Hours of operation (annum) ................................ 8,400
. Per heat capacity (tons) .................................... 225
. Heat time (hours) .......................................... 10.5
. Annual production (tons) ................................ 180,000
. Stack gas rate of 185 degrees F. (actual cubic
.... feet per minute) ..................................... 100,000
Basic oxygen furnace:
. Hours of operation (annum) ................................ 8,400
. Per heat capacity (tons) .................................... 165
. Heat time (hours) ........................................... 1.0
. Annual production (tons) .............................. 1,386,000
. Stack gas rate at 185 degrees F. (actual cubic
.... feet per minute) ..................................... 375,000
Electric furnace:
. Hours of operation (annum) ................................ 8,400
. Per heat capacity (tons) ..................................... 75
. Heat time (hours) ........................................... 4.0
. Annual production (tons) ................................ 157,500
. Stack gas rate at 185 degrees F. (actual cubic
.... feet per minute) ...................................... 80,000
Wet scrubbers are required for all levels of control on each type of
furnace. The 80, 90, and maximum percentage reductions are achieved by
wet scrubbers of successively higher efficiencies.
The characteristics of the unit sinter plant and the devices assumed
necessary to achieve the various levels of control are presented below:
Sintering plant:
. Hours of operation (annum) ................................ 8,400
. Actual production (tons) .................................. 3,000
. Stack gas rate at --
.... Main sintering strand at 135 degrees F. (actual
....... cubic feet per minute) ............................ 135,000
.... Sinter cooler at 325 degrees F. (actual cubic
....... feet per minute) .................................. 900,000
....... Total (actual cubic feet per minute) ............ 1,035,000
(())
GRAPHIC OMITTED
The ranges of investment and annual costs of controlling particulates
to levels of 80 percent, 90 percent, and maximum were developed for each
of the major sources. Unit plant costs are presented in table 16.
These were applied to uncontrolled sources to give the costs which are
presented in table 17.
For the steel industry in the 85 regions, the highest estimate of the
annual cost of maximum control of particulates is $69.7 million in 1974.
This would be 0.41 percent (less than one-half of 1 percent) of the
projected value of shipments for that year.
TABLE 16. -- STEEL INDUSTRY UNIT PLANT COSTS TO CONTROL PARTICULATE
EMISSIONS
GRAPHIC OMITTED
TABLE 17. -- STEEL INDUSTRY INVESTMENT COST AND ANNUAL COSTS TO CONTROL
PROCESS EMISSIONS -- (IN 85 METROPOLITAN AREAS) -- FISCAL YEARS 1970-74
GRAPHIC OMITTED
2.52 Asphalt batching
The Nation's asphalt batching plants produced roughly 221 million
tons of bituminous concrete in 1966 from a capacity of 427 million tons.
/15/ The value of shipments was about $1.5 billion, /16/ of which about
56 percent originated in the 85 areas considered in this report. This
production was from 3,100 plants, /17/ of which about 56 percent, or(())
roughly 1,740 plants were assumed to be located within the 85
metropolitan areas. The industry's capacity is expected to grow at an
annual rate of 9 percent. This would give a 1974 capacity of 890
million tons. The value of shipments is expected to be $3 billion in
1974, of which about $1.68 billion will originate in the 85 areas.
((/15/ Obtained from conversations with industry officials.))
((/16/ Based on an average price of $6.50 per ton produced.))
((/17/ Obtained from conversations with industry officials.))
Asphalt batching plants are sources of potentially heavy dust
emissions. Many plants emit well over 1,000 pounds per hour of
particulate matter. /18/ Under an assumed industrywide average level of
90-percent control, asphalt batching plants account for about 135,000
tons per year of particulate matter, or about 1.5 percent of the
national total. Within each plant, the rotary dryer is the principal
source of particulate emissions.
((/18/ County of Los Angeles, air pollution control district. Air
Pollution Engineering Manual, U.S. Department of Health, Education, and
Welfare, 1967, pp. 325-326.))
The unit plant, assumed for cost estimation purposes, has a capacity
of 150 tons per hour and is assumed to operate 1,400 hours per year.
This hourly capacity appears to be about average for the industry; the
assumed annual hours of operation are somewhat above the industry
average. This discrepancy causes operating cost estimates to be higher
for the assumed unit plant than for most actual 150-ton-per-hour plants.
The volume rate of flow through the plant's rotary dryer is assumed to
be 20,000 acfm.
The unit plant dryer is assumed to be under existing control by a
relatively high efficiency cyclone. Additional control to achieve the
maximum collection efficiency of 90-plus percent is obtained by adding
an intermediate efficiency wet scrubber.
The "low" estimate of the cost of maximum control for the unit plant
would involve an investment outlay of $24,700 and annual costs of
$4,000. The "high" estimates are $49,500 for investment and $8,400 for
the annual cost.
"Low" and "high" estimates of the investment and annual costs to
upgrade control of process emissions from asphalt batching in the 85
metropolitan areas to the maximum level of control are shown in table
18.
Based on the estimated 1974 capacity of asphalt batching plants in
the 85 metropolitan areas, the "high" annual cost of maximum particulate
reduction if $19.8 million. This would be roughly 1.17 percent of the
projected value of shipments for that year.
It should be noted that plants in the 85 metropolitan areas are
likely to be under a higher degree of control at present than the
assumed nationwide industry average. To the extent that this is true,
it would contribute to an upward bias in the cost estimate.
TABLE 18. -- ASPHALT BATCHING INDUSTRY INVESTMENT COST AND ANNUAL COST
TO CONTROL PARTICULATE EMISSIONS (IN 85 METROPOLITAN AREAS) FISCAL YEARS
1971-74
GRAPHIC OMITTED(())
2.53 Hydraulic cement
From a capacity of 509 million barrels, hydraulic cement plants
produce 394 million barrels of portland, natural, masonry, and pozzalan
cement in 1966, /19/ with a value of shipments of $1,253 billion. /20/
Industry growth is projected at an annual rate of 1.5 percent, thus
reaching a 1974 capacity of 571 million tons and a value of shipments of
$1.4 billion.
((/19/ U.S. Department of the Interior, Bureau of Mines, Minerals
Yearbook, 1966, vol. I-II, U.S. Government Printing Office, Washington,
D.C., 1967, pp. 438-441.))
((/20/ U.S. Department of Commerce, Bureau of Census, Annual Survey
of Manufacturers, 1966, General Statistics for Industry Groups and
Industries, 1967, pp. 12-13.))
It was assumed that portland cement, which now constitutes 98 percent
of total cement production, /21/ will continue to dominate the industry
over this period; therefore, control costs were developed only for that
part of the industry. It was further assumed that since 57 percent of
the cement capacity was located in the 85 metropolitan areas in 1966,
that the same percent of capacity will be in these areas in the future.
Finally it was assumed that the value of portland cement shipments from
plants in the 85 areas will amount to $760 million in 1974.
((/21/ U.S. Department of the Interior, Bureau of Mines, Minerals
Yearbook, 1966, vol. I-II, op. cit.))
There were 188 cement plants in operation in 1966. Of the national
total, 116 were wet process plants and the remainder dry process plants.
/22/ Both processes are potential sources of substantial amounts of
particulate emissions. In 1966, portland cement plants accounted for an
estimated 800,000 tons of particulate emissions, or about 9 percent of
the national total.
((/22/ U.S. Department of Interior, Bureau of Mines, Mineral
Yearbook; 1967, vol. I-II, U.S. Government Printing Office, Washington,
D.C., 1968, p. 288.))
The predominant source of emissions from a cement plant is the kiln.
Other sources include grinding and materials handling operations. For
purposes of this report, only the costs of controlling the kiln were
considered. Air pollution control is common practice as an integral
part of the grinding and materials handling operations, because the
value of recovered products generally is more than enough to pay for the
cost of control.
An estimate of the current degree of control of particulate emissions
from kilns appears in table 19.
TABLE 19. -- HYDRAULIC CEMENT INDUSTRY DISTRIBUTION OF PLANTS BY
COLLECTION EFFICIENCY OF AIR POLLUTION CONTROL EQUIPMENT INSTALLED
GRAPHIC OMITTED(())
Two unit plants, one each for the wet and dry processes, were assumed
for purposes of cost estimation. The wet process unit plant was assumed
to have an annual capacity of 2.4 million barrels, to operate for 7,200
hours per year, and to have a kiln volume exit gas volume rate of flow
of 200,000 acfm at 350 degrees F. The dry process unit plant was
assumed to have an annual capacity of 3 million barrels, to operate for
7,200 hours per year, and to have a kiln effluent volume rate of 450,000
acfm at 500 degrees F. These volumes are common in the industry as
presently structured.
Three different control systems were applied to these kiln emissions:
cyclones, electrostatic precipitators, or bag-houses. These yield,
respectively, three overall collection efficiencies: 80 percent, 90
percent, and maximum.
The unit plant cost estimates for the two processes are shown in
table 20. A range of investment and annual costs to upgrade control of
emissions from the industry plants located in the 85 metropolitan areas,
to the overall levels indicated for the fiscal years 1971-74 is shown in
table 21. A considerable cost offset could be provided from product
recovery. While the degree of product recovery would vary from plant to
plant, some degree of recovery is common in the industry and provides
some offset to the cost of control; however, no product recovery cost
offsets were considered for purposes of this analysis.
TABLE 20. -- HYDRAULIC CEMENT INDUSTRY UNIT PLANT COSTS FOR CONTROLLING
PARTICULATES
GRAPHIC OMITTED
For cement plants in the 85 areas in 1974, the "high" estimate of
annual costs of achieving maximum control is $5.2 million. This would
be about 0.6 percent (less than 1 percent) of the projected value of
shipments in that year.
TABLE 21. -- HYDRAULIC CEMENT INDUSTRY INVESTMENT COST AND ANNUAL COST
TO CONTROL PROCESS EMISSIONS (IN 85 METROPOLITAN AREAS), FISCAL YEARS
1971-74
GRAPHIC omitted(())
2.54 Gray iron foundries
In 1966, some 1,450 gray iron foundries /23/ produced 15.7 million
tons of castings for shipments with a value of $4.4 billion. /24/
Ninety-three percent of all gray iron castings were produced from metal
melted in cupolas. /25/ Electric furnaces produced the remainder.
Cupolas were assumed to account for about the same proportion of the
value of shipments as they do of production. Since electric melting
units have less production and lower emission rates, cost estimates were
developed for controlling cupolas only. Cupola production is expected
to increase to a level of 16.6 million tons for a value of $4.7 billion
by 1974. It is estimated that 52 percent of the gray iron castings are
currently shipped from plants in the 85 metropolitan areas. It is
assumed that the same proportion of the value of shipments will
originate from the 85 areas in 1974. This would amount to $2.4 billion.
((/23/ U.S. Department of Commerce, Business and Defense Services
Administration, "Commerce News," Washington, D.C., Mar. 13, 1969.))
((/24/ "Marketing Guide to the Metal Casting Industry," Penton
Publishing Co., Cleveland, Ohio, 1968, p. 3.))
((/25/ Sterling, Morton, "Current Status and Future Prospects --
Foundry Air Pollution Control," Proceedings: Third National Conference
on Air Pollution, U.S. Department of Health, Education, and Welfare,
Washington, D.C., 1966, p. 255.))
Gray iron foundries emitted 170,000 tons of particulates in 1966, or
about 1.9 percent of the national total. The industry is not a
significant source of sulfur oxide emissions; therefore, costs were
developed only for particulate control.
In the foundry production process, sand handling, sand mixing,
shakeout devices, and grinding, chipping, cleaning, and welding
operations emit particulates. These emissions commonly are controlled
by various types of dust-suppression equipment. The major uncontrolled
source of pollution is the melting operation, and this is centered
primarily in the cupola.
About 10 percent of the cupolas presently are under some degree of
control. Of these, about half achieve 60 percent control with wet caps,
one-quarter collect virtually all emissions with fabric filters, and the
rest operate equipment with intermediate performances. /26/ The average
level for controlled foundries is taken to be 75 percent; estimates of
future costs were developed with the average level as the base.
((/26/ U.S. Department of Commerce, Business and Defense Services
Administration, "Commerce News," op. cit.))
The unit foundry was assumed to pour a total of 17,500 tons of gray
iron castings per year from a 10-ton-per-hour cupola operating 7 hours
per day for 250 days. Assuming a typical 60 percent yield, 10,000 tons
of good castings would be available for shipment. This output is the
average plant output for the industry. The air pollution control
equipment is designed to handle the 25,000 actual cubic feet per minute
emanating from the cupola during melting operations.
The control systems assumed for the unit plant consist of a water
spray cooling chamber at each level of control in combination with a
high-efficiency cyclone for 80 percent control, a medium-efficiency wet
scrubber for 90 percent control, and a fabric filter for maximum
control. The unit plant costs are presented in table 22.(())
TABLE 22. -- GRAY IRON FOUNDRY INDUSTRY UNIT PLANT COSTS FOR
CONTROLLING PARTICULATE
GRAPHIC OMITTED
Estimated costs for the 85 metropolitan areas are shown in table 23.
Based on the capacity of foundries with cupolas in the 85 regions, the
highest estimate of annual costs of maximum particulate control is $10.9
million in 1974. This would be 0.45 percent (less than one-half of 1
percent) of the projected value of shipments in that year.
TABLE 23. -- GRAY IRON INDUSTRY INVESTMENT COST AND ANNUAL COST TO
CONTROL PARTICULATE EMISSIONS (IN 85 METROPOLITAN AREAS) FISCAL YEARS
1971-74
GRAPHIC OMITTED
2.55 Sulfate (kraft) pulpmills
Pulpmills of all types produced 35.6 million tons of pulp in 1966.
The value of shipments was $725 million. /27/ Some 110 sulfate, or
kraft, pulpmills accounted for about two-thirds of total pulp
production. /28/ For this report, control cost estimates were prepared
only for sulfate pulpmills because of their predominance in the industry
and the increasing importance of the sulfate process relative to other
pulping processes. By 1974, sulfate pulpmills are expected to produce
34.2 million tons of pulp from an annual capacity of 36.1 million tons.
The expected value of shipments is $696 million.
((/27/ U.S. Department of Commerce, Bureau of Census, Annual Survey
of Manufacturers: 1966, General Statistics for Industry Groups and
Industries, M66(AS)-I, op. cit., pp. 10-11.))
((/28/ U.S. Department of Health, Education, and Welfare, National
Air Pollution Control Administration, Control Techniques for Sulfur
Oxide Air Pollutants, Washington, D.C., 1969, pp. 5-61.))
Thirteen percent of the industry's sulfate pulp capacity was located
in the 85 metropolitan areas in 1966; it was assumed that the same
percentage of the industry value of shipments was from plants in the 85
areas. Based on this assumption and on expected value of shipments in
1974, it is expected that mills in the 85 areas will ship about $90.5
million worth of pulp in that year.
Sulfate pulp mills emitted 315,000 tons of particulates in 1966,
about 3.5 percent of national particulate emissions, and 41,000 tons of
sulfur oxides, about 0.1 percent of the national total. Cost estimates
have been prepared only for particulate control.(())
The major sources of particulate emissions in sulfate pulping are
recovery furnaces and lime kilns. Smelt tanks are a lesser source. A
typical plant includes each type of source. Existing control ranges
from zero to maximum. The average level of control was taken to be 90
percent and cost estimates were based on this assumption.
The unit plant assumed for cost estimation purposes has a capacity of
800 tons per 24 hours and is assumed to operate 350 days a year. The
unit plant is assumed to consist of: three recovery furnaces, each with
a daily capacity of approximately 270 tons of air-dried pulp and a stack
gas flow rate of 130,000 actual cubic feet per minute at 300 degrees F;
three smelt tanks, each with a stack gas flow of 13,000 actual cubic
feet per minute at 170 degrees F; and two lime kilns, each with a stack
gas flow of 25,000 actual cubic feet per minute at 170 degrees F.
The recovery furnaces are assumed to be controlled by electrostatic
precipitators for all three levels of control. Each higher level of
control is achieved by a more efficient system of greater capacity. The
smelt tanks and lime kilns are assumed to be controlled by wet
scrubbers. The amount of pressure drop through the wet scrubbers
determines whether 80 percent, 90 percent, or the maximum level of
control is achieved.
The unit plant costs for 80 and 90 percent and maximum control are
shown in table 24.
TABLE 24. -- SULFATE PULP INDUSTRY: UNIT PLANT COSTS FOR
CONTROLLING PARTICULATES
GRAPHIC OMITTED
"Low" and "high" estimates of the costs to control process emissions
from the 13 percent of the sulfate pulp mill capacity located in the 85
metropolitan areas are shown in table 25. For the projected sulfate
pulp capacity in the 85 areas, the "high" annual cost estimate for
maximum control of particulates is $1.5 million in 1974. This would be
about 1.66 percent of the value of shipments for that year.
TABLE 25. -- SULFATE PULPING INDUSTRY INVESTMENT COSTS AND ANNUAL COSTS
TO CONTROL PARTICULATE EMISSIONS (IN 85 METROPOLITAN AREAS), FISCAL
YEARS 1971-74
GRAPHIC OMITTED(())
2.56 Petroleum refineries
U.S. refineries had a daily crude oil processing capacity of 10.8
million barrels in 1966. /29/ As a result of refining operations, 281
plants /30/ shipped a variety of products valued at $18.7 billion. /31/
By 1974, capacity is expected to grow to 12.4 million barrels per day
with a concomitant increase in value of shipments to $22.1 billion per
year.
((/29/ U.S. Department of Interior, Bureau of Mines, Minerals
Yearbook; 1966, Volume I-II, op. cit., p. 869.))
((/30/ Ibid.))
((/31/ U.S. Department of Commerce, Bureau of Census, Annual Survey
of Manufacturers; 1966, General Statistics for Industry Groups and
Industries, M66(AS)-1, op. cit., p. 12-13.))
About 58 percent of the industry's capacity was located in the 85
metropolitan areas in 1966. Assuming this relationship holds true for
1974, refineries in the 85 areas will ship $12.6 billion worth of
petroleum products.
Particulate control. -- Refineries vented 134,000 tons of
particulate matter to the atmosphere in 1966. This was about 1.5
percent of the national total of particulate emissions. The major
source of particulate emissions in a typical refinery is the catalyst
regenerator of a fluid catalytic cracking unit, which is the only source
considered here. The process in the unit plant developed for cost
estimation purposes consists of a fluid catalytic cracker with a
capacity of 38,800 barrels per day. Operating 24 hours a day for 350
days during the year gives a total annual refining time of 8,400 hours.
The stack gas flow is 185,000 acfm at 500 degrees F.
External cyclones are assumed to produce 90 percent control of
particulates. The maximum level of control (98 percent or more) is
achievable with electrostatic precipitators. The industry is assumed to
have 25 percent of its plants with maximum control and 75 percent of its
plants with no control or minimum control. The unit plant estimates for
low and high investment and annual costs of particulate control are
presented in table 26.
TABLE 26. -- PETROLEUM REFINING INDUSTRY, UNIT PLANT COSTS FOR
CONTROLLING PARTICULATES
GRAPHIC OMITTED
For the 58 percent of the industry capacity in the 85 areas, the
"low" and "high" estimates of investment and annual costs of particulate
control are shown in table 27. These estimates reflect the assumed
national growth in fluid catalytic cracking capacity.(())
TABLE 27. -- PETROLEUM REFINING INDUSTRY, ESTIMATED INVESTMENT AND
ANNUAL COSTS OF PARTICULATE CONTROL (IN 85 METROPOLITAN AREAS) FISCAL
YEARS 1971-74
GRAPHIC OMITTED
Sulfur oxides control. -- Refineries discharged 2.1 million tons of
sulfur oxides in 1966. This was about 7 percent of the national total
of sulfur oxides emissions. One of the major sources of sulfur oxides
emissions from refineries is the burning of hydrogen sulfide. Hydrogen
sulfide is formed in a number of refinery operations, including
catalytic cracking, hydrocracking, reforming, hydrotreating, and other
treating processes. It is associated with the formation of low
molecular weight hydrocarbon products of refining paraffins. This gas
mixture, known as refinery process gas, is normally collected and used
as refinery fuel. Unless the hydrogen sulfide is removed, it is burned
with the process gas in refinery process heaters and boilers and emitted
as sulfur dioxide.
The hydrogen sulfide can be removed from the process gas by the use
of amine absorbers. On desorbtion, a relatively pure hydrogen sulfide
gas is obtained; it then can be partially oxidized in a recovery
furnace to produce elemental sulfur and water vapor.
The costs to the petroleum refining industry associated with control
of sulfur oxide emissions have been developed on the basis of adding
sulfur recovery facilities to uncontrolled refineries. Refineries that
already have sulfur recovery facilities were not considered in
developing the cost estimates.
Costs of sulfur recovery were calculated on a plant-by-plant basis.
As a first step in the estimating procedure, each refinery was
classified into one of four groups, according to processing complexity.
Then a factor was derived for each group indicating the amount of
hydrogen sulfide in the refinery process gas. The crude capacity of
each refinery was then multiplied by the factor appropriate to its
complexity to calculate the amount of recoverable sulfur. An individual
cost calculation then could be made for recovering the sulfur in each
plant and totaled for the industry in the 85 metropolitan areas.
Annual costs include an operating cost estimate which reflects the
value of steam-heat exchanges associated with the sulfur recovery
process and the cost of fuels burned in place of hydrogen sulfide.
Estimates for the investment and annual cost of controlling sulfur oxide
in the 85 areas are presented in table 28 only for 90 percent control.
The projected amount of sulfur recovered in 1974 is 329,000 tons. While
the value of the recovered sulfur could equal a substantial part of the
cost of control and, in many cases, allow a net profit, the cost offset
value of the recovered sulfur has not been considered in this
report.(())
TABLE 28. -- PETROLEUM REFINING INDUSTRY ESTIMATED COSTS FOR CONTROL OF
SULFUR OXIDES (IN 85 METROPOLITAN AREAS), FISCAL YEARS 1971-74 (In
millions of dollars)
............................ Level of ... Investment
. Fiscal year ................ control ......... cost ... Annual cost
1971 .............................. 90 .......... 6.2 ........... 4.3
1972 .............................. 90 ......... 10.6 .......... 13.6
1973 .............................. 90 ........... .6 .......... 14.0
1974 .............................. 90 ........... .8 .......... 14.4
For the petroleum refining capacity in the 85 metropolitan areas, the
estimated "high" annual cost of maximum control of particulates and 90
percent control of sulfur oxides amounts to $18 million in 1974. This
would be 0.14 percent (less than 1 percent) of the projected value of
shipments in that year.
2.57 Sulfuric Acid Industry
The Nation's sulfuric acid plants had an annual capacity of 38
million tons in 1966. /32/ In that year, 28 million tons of sulfuric
acid were produced. The value of shipments was $246 million. /33/
Annual capacity is projected to increase to 58 million tons in 1974,
with a concomitant projected increase in value of shipments to $360
million.
((/32/ Based on (a) preliminary estimate of 1967 sulfuric acid
production (equal to 72.6 percent of capacity) and (b) Cooperative Study
Project of Manufacturing Chemists' Association, Inc., and Public Health
Service, Atmospheric Emissions From Sulfuric Acid Manufacturing
Processes. U.S. Department of Health, Education, and Welfare, Public
Health Service Publication No. 999-AP-13, U.S. Government Printing
Office, Washington, D.C., 1965, p. 8.))
((/33/ U.S. Bureau of the Census, Current Industrial Reports Series
M28A(66) -- 13, Inorganic Chemicals and Gases; 1966, U.S. Department of
Commerce, Washington, D.C., 1968, p. 2.))
About 50 percent of the Nation's sulfuric acid manufacturing capacity
was located in the 85 areas in 1966. If the same share of the
industry's value of shipments originates in these areas in 1974, it will
amount to $180 million.
There were 218 plants producing sulfuric acid in 1966. Of these 168
operated with a contact process, 47 with a chamber process, and three
with both processes. /34/ About 98 percent of all sulfuric acid is
being produced by the contact process. /35/ Chamber process plants are
being replaced in favor of the more efficient contact processes. Of the
total number of plants, about 20 were operated in connection with the
primary smelting of copper, lead, and zinc.
((/34/ Ibid.))
((/35/ Ibid.))
Sulfuric acid plants are significant emitters of both particulates
and sulfur oxides. They emitted 600,000 tons of sulfur oxides in 1966,
about 2.1 percent of the national total, and 31,000 tons of particulate
matter, about 0.4 percent of the national total.
The major source of emissions of both sulfur oxides and particulates
in the contact process is the exit gas from the absorber. This exit gas
contains unreacted sulfur dioxide from the converter stage and sulfuric
acid mist, which is classed as particulate matter.
Sulfur dioxide emissions may be controlled by increasing the
completeness of conversion to sulfur trioxide. Existing conversion
levels are assumed to average 96 percent. The conversion level can be
raised to approximately 99.6 percent by the addition of extra equipment
stages (the "double contact" process). This would achieve a 90-percent
reduction of the formerly unreacted sulfur dioxide.(())
While the range of particulate control levels for sulfuric acid miss
varies from no control to maximum control, 80 percent control it common
practice. This level of control was the base from which estimates were
made of the costs of achieving 90 percent and maximum levels of control.
These higher levels of control assume the use of electrostatic
precipitators of two levels of efficiency.
The unit plant has a design capacity of 180,000 tons of sulfuric acid
per year. It is assumed to operate 24 hours a day, 350 days a year, and
to produce 126,000 tons of acid. This was the average size of plant for
the industry in 1967. The stack gas flow rate is 45,000 actual cubic
feet per minute at 140 degrees F. based on design capacity. The "high"
and "low" estimates of investment and annual costs for the particulate
and sulfur oxides control are presented for the unit plant in table 29.
TABLE 29. -- SULFURIC ACID INDUSTRY, UNIT PLANT COSTS FOR CONTROLLING
SULFUR OXIDES AND PARTICULATE MATTER
GRAPHIC OMITTED
The estimated costs of achieving a 90-percent reduction in sulfur
oxides emissions were developed on the basis of the additional
investment required for the double contact recovery process. The cost
of installing this process is greater for existing plants than for new
plants. The "high" cost estimates would represent the total cost if no
new plants are built and if the increased conversion is attained solely
through plant modification. The "low" costs allow for future increases
in production to be met entirely by new plants. Since historical data
suggest that future increases in capacity will be achieved primarily
through the expansion of existing plants, the gross cost of sulfur oxide
control probably will be closer to the "high" value. In either case,
the value of increased acid production achieved through air pollution
control would be a considerable portion of the cost of control. For
purposes of this report, however, the value of added recovery has not
been considered as a cost offset. Table 30 shows the investment and
annual costs of sulfur oxide control. Table 31 shows the cost of
controlling the acid mist particulates.
TABLE 30. -- SULFURIC ACID INDUSTRY, INVESTMENT AND ANNUAL COST OF
SULFUR OXIDES CONTROL -- (IN 85 METROPOLITAN AREAS) -- FISCAL YEARS
1971-74
GRAPHIC OMITTED(())
For the capacity of the sulfuric acid industry in the 85 metropolitan
areas, the "high" estimate of the annual cost of maximum particulate
control and 90 percent sulfur oxide control in 1974 is $22.8 million.
This would be 12.66 percent of the value of shipments for that year.
The net cost, if the value of additional recovered acid were considered,
would be substantially lower.
TABLE 31. -- SULFURIC ACID INDUSTRY ANNUAL COST AND INVESTMENT COST OF
PARTICULATE CONTROL (IN 85 METROPOLITAN AREAS), FISCAL YEARS 1971-74
GRAPHIC OMITTED(())
CHAPTER 3: MOTOR VEHICLE POLLUTION CONTROL COSTS
This chapter presents estimates of the cost of consumers of
purchasing new passenger cars equipped to meet national standards for
the control of air pollution and of the associated maintenance costs.
These estimates relate to the national standards that have been in
effect for the 1968/69 model years and to the new ones promulgated for
initial application in the 1970/71 model years. Emissions of two types
of pollutants -- carbon monoxide and hydrocarbons -- are affected by
these standards.
3.10 Motor vehicle emissions
Carbon monoxide is emitted almost entirely through the exhaust
tailpipe. Hydrocarbons reach the air through four sources -- the
crankcase (blowby), the exhaust tailpipe, the gasoline tank, and the
carburetor. Emissions from the gasoline tank and carburetor are due to
evaporation of gasoline. A typical American-made car equipped to
control emissions only from the crankcase would discharge an estimated
71 grams of carbon monoxide per mile and 18.4 grams of hydrocarbons per
mile.
3.20 Emission control
The first type of motor vehicle pollution control to be introduced on
new cars was the positive crankcase ventilation (PCV) system. This
system returns blowby gases from the crankcase to the engine; without
it, these gases would be released into the air. PCV systems were first
installed on new cars sold in California in the 1961 model year and on
new cars for sale everywhere in the country in the 1963 model year.
National application of crankcase control preceded the enactment of
Federal legislation authorizing the establishment of national standards
for motor vehicle pollution control. For the purpose of estimating
costs, blowby control is used as the baseline from which the cost of
additional control is measured.
National standards were first placed in effect in the 1968 model
year; the same standards remained in effect for the 1969 model year.
They applied to carbon monoxide emissions from the exhaust tailpipe and
to hydrocarbon emissions from the crankcase and tailpipe. These
standards were intended to have the effect of reducing emissions from a
typical car to 33 grams of carbon monoxide per mile, a reduction of 53
percent, and 7.1 grams of hydrocarbons per mile, a reduction of 62
percent.
New standards promulgated for initial application in the 1970 model
year call for further reductions in tailpipe emissions. They are
intended to reduce emissions from a typical car to 23 grams of carbon
monoxide per mile and 6.1 grams of hydrocarbons per mile, thus achieving
total reductions of about 68 percent in carbon monoxide and about 67
percent in hydrocarbon emissions. Automobile manufacturers are expected
to meet these standards primarily through refinements of techniques
already in use.(())
Beginning in the 1971 model year, new cars also will be required to
comply with national standards for the control of evaporative losses of
hydrocarbons. This will be accomplished through the use of various
systems for trapping gasoline vapors from the fuel tank and carburetor.
Evaporative control is intended to reduce total hydrocarbon emissions to
2.6 grams per mile, which would bring the total reduction of hydrocarbon
emission to 85 percent.
3.30 Unit costs
Table 32 shows estimates of the price per car for motor vehicle
pollution control. /36/ These estimates which pertain only to
American-made cars, are based on information furnished by the automobile
industry.
TABLE 32. -- MOTOR VEHICLE POLLUTION UNIT COST OF NEW CAR HYDROCARBON
AND CARBON MONOXIDE CONTROL (From industry sources)
.................................................. Additional
................................. Cumulative ......... annual
.................................... capital ...... operating
. Control ...................... cost per car ... cost per car
1968 national standards ................ $18 .............. 0
1970 national standards ................. 36 .............. 0
1971 national standards ................. 48 ............. $1
((/36/ Ernst and Ernst. A study of Selected Hydrocarbon Emission
Controls report prepared for U.S. Department of Health, Education, and
Welfare Nation Air Pollution Control Administration, Washington, D.C.,
July 1969, p. III-8.))
Estimates of capital costs are the industry's estimates of the costs
that have been or will be passed on to new car buyers. They are not
necessarily the costs of producing the equipment needed to meet the
national standards for pollution control. Data on production costs have
not been made available.
Table 33 shows both capital costs and additional annual costs
associated with operation of pollution control equipment. The capital
costs represent estimates of the difference between the price of a car
equipped to meet the standards for a given model year and the price of a
car not so equipped. The only annual operation cost considered
significant is that associated with evaporative control; as shown in
table 32, it represents either maintenance or replacement cost,
depending on the type of evaporative control system employed. Operation
and maintenance of exhaust control systems are considered to cost no
more than proper operation and maintenance of cars not equipped with
such systems.
The capital cost estimates shown in Table 33 indicate that new car
buyers will pay more for compliance with the 1970 standards than they
did for compliance with the 1968 standards. Since announcements of 1970
model year prices had not been made at the time these data were
compiled, these estimates must be considered speculative. Furthermore,
since compliance with the 1970 standards is not expected to require any
substantial engineering modifications that had not been introduced to
meet the 1968 standards, 1970 capital costs may prove to be lower than
the estimates.(())
Table 33 shows the projected annual national costs to consumers.
These projections are based on the unit costs shown in table 33 and on
an assumption that an average of 10 million new cars will be added to
the Nation's motor vehicle population during the next 5 years.
TABLE 33. -- ESTIMATED COST OF MOTOR VEHICLE EMISSION CONTROL SYSTEMS
-- 1968-1974
GRAPHIC OMITTED(())
APPENDIX
ANNUAL COSTS OF SULFUR OXIDES AND PARTICULATE CONTROL, COMBUSTION AND
SELECTED INDUSTRIAL PROCESS SOURCES, BY METROPOLITAN AREA
TABLE 34. -- FISCAL YEAR 1971 (WITH 1 PERCENT
SULFUR-IN-FUEL RESTRICTION)
GRAPHIC OMITTED(())
TABLE 35. -- FISCAL YEAR 1972
GRAPHIC OMITTED(())
TABLE 35. -- FISCAL YEAR 1972 -- Continued
GRAPHIC OMITTED
TABLE 36. -- FISCAL YEAR 1973
GRAPHIC OMITTED(())
TABLE 36. -- FISCAL YEAR 1973 -- Continued
GRAPHIC OMITTED(())
GRAPHIC OMITTED(())
TABLE 37. -- FISCAL YEAR 1974 -- Continued
GRAPHIC OMITTED
TABLE 38. -- FISCAL YEAR 1971 (WITH 1.5 PERCENT SULFUR-IN-FUEL
RESTRICTION)
GRAPHIC OMITTED(())
TABLE 39. -- FISCAL YEAR 1972
GRAPHIC OMITTED(())
TABLE 39. -- FISCAL YEAR 1972 -- Continued
GRAPHIC OMITTED
TABLE 40. -- FISCAL YEAR 1973
GRAPHIC OMITTED(())
TABLE 40. -- FISCAL YEAR 1973 -- Continued
GRAPHIC OMITTED(())