1
MEMORANDUM
DATE:
June
9,
2005
SUBJECT:
Cost
per
Ton
for
NSPS
for
Stationary
CI
ICE
FROM:
Tanya
Parise,
Alpha­
Gamma
Technologies,
Inc.

TO:
Sims
Roy,
EPA
OAQPS
ESD
Combustion
Group
The
purpose
of
this
memorandum
is
to
estimate
the
cost
per
ton
of
pollutant
removed
for
the
proposed
new
source
performance
standards
(
NSPS)
for
stationary
compression
ignition
(
CI)
internal
combustion
engines
(
ICE).
This
memorandum
also
presents
the
cost
per
ton
of
other
control
technologies
EPA
considered.

Introduction
The
proposed
rule
requires
stationary
CI
engines
to
comply
with
standards
that
have
been
promulgated
for
nonroad
CI
engines.
These
standards
consist
of
various
tiered
levels
that
increase
in
stringency.
Although
the
proposed
rule
requires
stationary
CI
engines
to
meet
all
tiers,
EPA
expects
that
stationary
CI
engines
would
generally
emit
the
same
levels
as
nonroad
engines
until
Tier
4
is
required,
even
in
the
absence
of
the
rule.
For
the
purpose
of
estimating
reductions
for
stationary
CI
engines,
the
EPA
does
not
take
credit
for
reductions
until
Tier
4
is
in
effect.
This
means
that
the
baseline
level
for
estimating
reductions
is
the
tier
level
prior
to
Tier
4.
The
EPA
expects
that
nitrogen
oxides
(
NO
x)
adsorbers
and
catalyzed
diesel
particulate
filters
(
CDPF)
will
be
used
to
meet
Tier
4
levels
and
are
expected
to
reduce
NO
x
and
particulate
matter
(
PM)
emissions,
respectively,
by
at
least
90
percent.

Control
Cost
The
methodology
for
estimating
the
cost
of
these
control
technologies
is
presented
in
the
memorandum
entitled
"
Control
Costs
for
NO
x
adsorbers
and
CDPF
for
CI
Engines,"
included
in
the
docket
(
Docket
ID
No.
OAR­
2005­
0029).
The
average
annual
cost
of
control
for
NO
x
adsorbers
and
CDPF
were
each
estimated
at
$
1
per
horsepower
(
HP).
The
combined
annual
cost
of
control
was
estimated
at
$
2/
HP.
To
determine
the
annual
control
cost
per
engine,
EPA
multiplied
the
combined
annual
cost
1US
EPA.
Exhaust
and
Crankcase
Emission
Factors
for
Nonroad
Engine
Modeling
 
Compression
Ignition.
EPA420­
P­
04­
009.
April
2004.
NR­
009c.

2
of
control
by
the
average
engine
size
for
each
HP
range.
The
total
annual
cost
of
control
per
engine
for
each
engine
size
range
is
presented
in
Table
1.

Table
1.
Annual
Cost
of
Control
per
Engine
w/
NO
x
Adsorbers
and
CDPF
HP
Range
Average
HP
Annual
Control
Cost
($/
HP)
Annual
Control
Cost
per
Engine
($/
yr)

50­
75
63
2
126
75­
100
88
2
176
100­
175
135
2
270
175­
300
238
2
476
300­
600
450
2
900
600­
750
675
2
1,350
750­
1,200
975
2
1,950
1,200­
3,000
2,100
2
4,200
>
3,000
5,000
2
10,000
Emission
Reduction
The
emission
factors
corresponding
to
the
various
tiers
were
obtained
from
Table
A.
2
of
EPA's
emission
factors
for
nonroad
CI
engine
modeling.
1
To
determine
the
pollutant
reduction
per
engine
as
a
result
of
applying
Tier
4
add­
on
control,
EPA
subtracted
the
Tier
4
level
from
the
previous
tier
level.
The
resulting
emission
factors
representing
the
reduction
per
engine
for
each
size
range
are
shown
in
Table
2.

Table
2.
Emission
Factors
for
NO
x
and
PM
3
Reduction
(
g
HP

hr
)
x
Average
HP
x
hrs
yr
x
0.0022046
lb
g
2,000
lb
ton
HP
Range
Emission
Factor
(
g/
HP­
hr)

NOx
PM
Previous
Tier
Tier
4*
Reduction
Previous
Tier
Tier
4**
Reduction
50­
75***
3.0
0.30
2.700
0.20
0.0184
0.1816
75­
100
3.0
0.276
2.724
0.30
0.0092
0.2908
100­
175
2.5
0.276
2.224
0.22
0.0092
0.2108
175­
300
2.5
0.276
2.224
0.15
0.0092
0.1408
300­
600
2.5
0.276
2.224
0.15
0.0092
0.1408
600­
750
2.5
0.276
2.224
0.15
0.0092
0.1408
750­
1,200
2.392
0.46
1.932
0.069
0.0184
0.0506
1,200­
3,000
4.1
0.46
3.640
0.069
0.0184
0.0506
>
3,000
4.1
0.46
3.640
0.069
0.0184
0.0506
*
Tier
4
for
NO
x
is
based
on
the
use
NO
x
adsorbers.
**
Tier
4
for
PM
is
based
on
the
use
of
CDPF.
***
NO
x
add­
on
control
is
not
required
for
this
size
range.
Estimates
shown
are
for
information
purposes
only,
assuming
a
hypothetical
90
percent
reduction
of
NO
x
from
the
previous
tier.

Using
the
emission
reduction
per
engine
shown
in
Table
2,
the
yearly
emission
reduction
per
engine
for
each
HP
range
was
calculated
using
the
following
equation:

where:

Reduction
=
The
reduction
of
NO
x
or
PM
per
engine
for
each
HP
range,
in
g/
HPhr
from
Table
2,
Average
HP
=
Average
engine
size
for
each
HP
range,
from
Table
1,
hrs/
yr
=
Average
hours
of
operation
(
1,000
hrs/
yr
for
prime
engines;
37
hrs/
yr
for
emergency
engines),
0.0022046
=
Conversion
factor,
in
lb/
g,
and
2,000
=
Conversion
factor,
in
ton/
lb.

Based
on
the
above
equation
and
the
emission
factors
representing
the
reduction
per
4
engine
in
Table
2,
EPA
estimated
the
reductions
per
engine
per
year
presented
in
Table
3.
5
Table
3.
Estimated
Reduction
of
NO
x
and
PM
per
Engine
w/
NO
x
Adsorbers
and
CDPF
HP
Range
Reduction
per
Engine
(
tpy)

NOx
PM
Prime
Emergency
Prime
Emergency
50­
75*
0.188
0.007
0.0126
0.0005
75­
100
0.264
0.010
0.0282
0.0010
100­
175
0.331
0.012
0.0314
0.0012
175­
300
0.583
0.022
0.0369
0.0014
300­
600
1.103
0.041
0.0698
0.0026
600­
750
1.655
0.061
0.1048
0.0039
750­
1,200
2.076
0.077
0.0544
0.0020
1,200­
3,000
8.426
0.312
0.1171
0.0043
>
3,000
20.062
0.742
0.2789
0.0103
*
NO
x
add­
on
control
is
not
required
for
this
size
range.
Estimates
shown
are
for
information
purposes
only
and
are
based
on
a
hypothetical
90
percent
reduction
of
NO
x
from
the
previous
tier.

Cost
per
ton
Based
on
the
annual
cost
of
control
per
engine
shown
in
Table
1
and
the
reduction
per
engine
shown
in
Table
3,
EPA
estimated
the
cost
of
control
per
ton
of
pollutant
removed
as
shown
in
Table
4.

Table
4.
Cost
of
Control
per
Ton
of
Pollutant
Removed
w/
NO
x
Adsorbers
and
CDPF
HP
Range
Cost
per
ton
NOx
Removed
($/
ton)
Cost
per
ton
PM
Removed
($/
ton)
Cost
per
ton
NOx+
PM
Removed
($/
ton)

Prime
Emergency
Prime
Emergency
Prime
Emergency
50­
75*
672
18,162
4,996
135,015
630
17,017
75­
100
666
18,002
6,239
168,630
602
16,266
100­
175
816
22,049
8,607
232,626
745
20,140
175­
300
816
22,049
12,886
348,278
767
20,736
HP
Range
Cost
per
ton
NOx
Removed
($/
ton)
Cost
per
ton
PM
Removed
($/
ton)
Cost
per
ton
NOx+
PM
Removed
($/
ton)

Prime
Emergency
Prime
Emergency
Prime
Emergency
6
300­
600
816
22,049
12,866
348,278
767
20,736
600­
750
816
22,049
12,866
348,278
767
20,736
750­
1,200
939
25,382
35,857
969,121
915
24,734
1,200­
3,000
498
13,472
35,857
969,121
492
13,287
>
3,000
498
13,472
35,857
969,121
492
13,287
*
NO
x
add­
on
control
is
not
required
for
this
size
range.
Estimates
shown
are
for
information
purposes
only
and
are
based
on
a
hypothetical
90
percent
reduction
of
NO
x
from
the
previous
tier.

The
EPA
also
evaluated
the
cost
per
ton
of
using
selective
catalytic
reduction
(
SCR).
The
NO
x
reduction
using
SCR
is
expected
to
be
the
same
as
NO
x
adsorber,
i.
e.,
about
90
percent,
so
the
EPA
used
the
NO
x
reduction
shown
in
Table
3
to
estimate
the
cost
per
ton
with
SCR.
Based
on
information
received
from
control
technology
vendors,
EPA
estimated
SCR
annual
control
costs
of
$
36/
HP
per
engine.
The
resulting
costs
per
ton
of
NO
x
removed
for
various
stationary
CI
engine
sizes
are
shown
in
Table
5.

Table
5.
Cost
of
Control
per
Ton
of
NO
x
Removed
w/
SCR
HP
Range
SCR
Annual
Control
Cost
per
Engine
($/
yr)
NOx
Reduction
per
Engine
Cost
per
ton
NOx
Removed
($/
ton)

Prime
Emergency
Prime
Emergency
50­
75
2,268
0.188
0.007
12,096
326,917
75­
100
3,168
0.264
0.010
11,989
324,036
100­
175
4,860
0.331
0.012
14,685
396,886
175­
300
8,568
0.583
0.022
14,685
396,886
300­
600
16,200
1.103
0.041
14,685
396,886
600­
750
24,300
1.655
0.061
14,685
396,886
750­
1,200
35,100
2.076
0.077
16,904
456,871
1,200­
3,000
75,600
8.426
0.312
8,972
242,493
HP
Range
SCR
Annual
Control
Cost
per
Engine
($/
yr)
NOx
Reduction
per
Engine
Cost
per
ton
NOx
Removed
($/
ton)

Prime
Emergency
Prime
Emergency
7
>
3,000
180,000
20.062
0.742
8,972
242,493
Finally,
EPA
evaluated
the
cost
per
ton
of
using
oxidation
catalyst.
The
technology
can
reduce
PM
emissions
up
to
30
percent
from
stationary
CI
engines.
Based
on
information
obtained
from
the
Office
of
Transportation
and
Air
Quality
for
oxidation
catalysts,
EPA
developed
oxidation
control
costs
following
the
methodology
discussed
in
the
control
cost
memorandum
referenced
earlier
in
this
memorandum.
Using
that
methodology,
EPA
estimated
an
average
annual
cost
of
control
for
oxidation
catalysts
of
$
0.30/
HP
per
engine.
Assuming
oxidation
catalysts
will
reduce
PM
emissions
by
30
percent
from
stationary
CI
engines,
EPA
estimated
the
cost
per
ton
of
PM
removed
for
various
stationary
CI
engine
sizes
as
shown
in
Table
6.

Table
6.
Cost
of
Control
per
Ton
of
PM
Removed
w/
Oxidation
Catalyst
HP
Range
Oxidation
Catalyst
Annual
Control
Cost
per
Engine
($/
yr)
PM
Reduction
per
Engine
Cost
per
ton
PM
Removed
($/
ton)

Prime
Emergenc
y
Prime
Emergenc
y
50­
75
19
0.004
0.0002
4,536
122,594
75­
100
26
0.009
0.0003
3,024
81,729
100­
175
41
0.010
0.0004
4,124
111,449
175­
300
71
0.012
0.0004
6,048
163,458
300­
600
135
0.022
0.0008
6,048
163,458
600­
750
203
0.033
0.0012
6,048
163,458
750­
1,200
293
0.022
0.0008
13,148
355,344
1,200­
3,000
630
0.048
0.0018
13,148
355,344
>
3,000
1,500
0.114
0.0042
13,148
355,344
