In conclusion, the department estimates a capital cost per facility for scenarios where a less expensive technology is required is in the range of $620,005/facility to $8,487,274/facility (2019 dollars).
The mean of the range is $4,553,640/facility (2019 dollars)
The department used the mean of the range as an estimate of capital cost per facility for scenarios where a less expensive technology is required.
The department estimated the average capital cost for scenarios where a less expensive technology is required is $ 4,553,640/facility (2019 dollars).
The department assumed the Annualized Capital Cost Factor (20 years at 5% discount) = 0.08 is applicable to scenarios where less expensive technology is required.
The department estimated annual capital cost per facility for scenarios where a less expensive technology is required is $364,291/facility/year = $4,553,640/facility (2019 dollars) x 0.08 (2019 dollars).
More expensive technology.
The department used estimates for recirculating systems that the EPA used for the rule (see References below).
EPA estimates that wet cooling towers will cost $263/gpm (2009 dollars) of water (for installations of average difficulty). Addition of plume abatement technology is predicted to increase capital cost by $120/gpm (2009 dollars).
Based on a small facility with 125 MGD the EPA based estimate per is $23 million /facility to $33 million /facility (2009 dollars) per facility or $27.5 million /facility to $40 million /facility (2019 dollars).
In conclusion, the department estimates an annual capital cost for scenarios where a more expensive technology is required is in the range of $27.5 million to $40 million (2019 dollars).
The department used the low value of the range as an estimate of capital cost for scenarios where a more expensive technology is required.
The department estimated capital cost per facility for scenarios where a more expensive technology is required is $27.5 million /facility (2019 dollars).
The department assumed the Annualized Capital Cost Factor (20 years at 5% discount) = 0.08 is applicable to scenarios where more expensive technology is required.
The department estimated annual capital cost per facility for scenarios where a more expensive technology is required is $2,200,000/year/facility = $27,500,000/facility x 0.08.
COST PER YEAR
Cost per year = annual capital cost + O&M cost per year
The following table shows the total cost per year based on the above estimates.
Four Categories Showing Estimated Costs per Facility (2019 dollars)
Category of Facility | Capital Cost | O&M Cost | Total Annual Cost Per Year ($/facility/year) |
| Capital Requirements | Capital Cost ($/facility/year) | O&M Requirements | O&M Cost ($/facility/year) | |
1 | Not needed | 0 | ½ of EPA’s average O&M estimate | 65,500 | 65,500 |
2 | Not needed | 0 | EPA average O&M estimate | 131,000 | 131,000 |
3 | Less expensive technology | 364,291 | EPA’s average O&M estimate | 131,000 | 495,291 |
4 | More expensive technology required | 2,200,000 | EPA’s average O&M estimate | 131,000 | 2,331,000 |
The following table summarizes statewide costs based on the above estimates.
Four Categories Showing Long Term Annualized Costs of Compliance Statewide (2019 dollars)
Category of Facility | Count of Facilities in State (#) | Annual Capital And O&M Cost Per Year For Facility In A Category ($/facility/year) | Total Of Annual Capital And O&M Cost Per Year For State For All Facilities In A Category ($/state/year) |
State total for all categories | 28 | NA | 12,971,574 |
Based on these estimates, the long term annual cost to come into compliance with the federal rule for the entire state is $13 million per year (2019 dollars). The total in any 2-year window would be two times the long term annual cost or $26 million for a two year period (2019 dollars).
In conclusion, costs are difficult to estimate because the cost of technology will depend on case-by-case permit decision for each facility. The costs here are based on lower end estimates of likely scenarios.
References:
The department used estimates for O&M cost per year from the following EPA document.
Economic and Benefits Analysis for the Final Section 316(b) Phase II Existing Facilities Rule. EPA-821-R-04-005. February 2004. o
Table B1-4 lists the estimated costs of each of the monitoring, record keeping, and reporting activities described in the EPA report. Certain activities are expected to be more costly for marine facilities than for freshwater facilities.The department used estimates for capital costs for fine mesh screens and very fine mesh screens and travelling screens from the following EPA document.
Technical Development Document for the Final Section 316(b) Phase II Existing Facilities Rule EPA 821-R-04-007 DCN 6-0004 February 12, 2004. o
Figure 1-2 presents the total capital costs of the complete system for fine mesh screens in freshwater at selected offshore distances. Figure 1-7 presents the total capital costs of the complete system for fine mesh screens in freshwater with Zebra Mussels at selected offshore distances. o
Section 2.1 explains how width and depth can be estimated.o
Table 2-12, Total Capital Costs for Scenario C - Adding Fine Mesh with Fish Handling and Return Freshwater Environments shows costs as $436,224 to $661,024 (2002 dollars) for total width of 20 feet and range of well depth from 25 to 50 feet. The department used estimates for recirculating systems from the following EPA document.
“Technical Development Document for the Final Section 316(b) Existing Facilities Rule,” U.S. Environmental Protection Agency EPA-821-R-14-002 (May 2014).
