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Obtaining a Construction Permit 211

Cost Category Considerations
Capital Costs
Emission control system direct Include sales tax, instrumentation, freight, and other
capital cost capital costs for the control equipment. In some cases, the
installation of control systems will also result in the need for
continuous emissions monitoring system (CEMS). In these
cases, the costs of CEMS must be included
Installation cost Include items such as foundation, handling, erection,
electrical, piping, ductwork, and insulation. Costs are
approximately 30% of equipment cost
Indirect capital cost Include engineering, construction/field expense, contractor
fees, start-up costs, performance tests, contingencies. The
default assumption is that costs, excluding performance
test, are approximately 20% of equipment cost, and that
performance tests are another 1%. The cost of regulatory
tests upon equipment commissioning may be higher than
the default, especially if emissions monitoring systems are
installed and must be certified
Emission mitigation cost In some cases, emission increases are mitigated through
avoidance the purchase of emission reduction credits. If the use of
technology reduces these costs, the foregone costs may
have to be credited against the other capital costs of the
project
Operating Costs
System maintenance costs Include direct labor, supervisory and consumable materials
costs
Fuel penalty costs Include costs incurred due to reductions in operating
efficiency attributed to the control technology and the
additional cost differential if higher-cost fuel alternatives
are utilized
Annual reactant costs Include costs for ammonia, urea or other reactant
Annual emissions verification Include cost for control system tests and additional
regulatory compliance tests that would not otherwise
be needed
Catalyst cleaning and Include an annual allowance to account for the cost of
replacement periodic cleaning and replacement of catalyst (materials and
labor). Include disposal fees, if any
Utilities Include cost of electricity, water, and other utilities needed
to operate the emission control system
Indirect operating costs Include overhead, taxes, insurance, and administrative
costs. Costs are typically 65% of operating labor,
supervisory labor, and materials cost
TABLE 12-2 Control Technology Cost Analysis Considerations