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  |"Bromberg, Kevin L." <kevin.bromberg@sba.gov>                                                                                               
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  |RobertJ Wayland/RTP/USEPA/US@EPA, "Cortney Higgins" 
<Cortney_Higgins@omb.eop.gov>, "Kymn, Christine J." 
<Christine_J._Kymn@omb.eop.gov>,    |
  |Melanie King/RTP/USEPA/US@EPA, Michael Horowitz/DC/USEPA/US@EPA, Peter 
Tsirigotis/RTP/USEPA/US@EPA                                          |
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  |08/09/2010 06:08 PM                                                                                                                         
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  |FW: Costs - Technical projects and reports                                                                                                  
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Bob, as you requested, the cost breakdown for the RICE testing project.
I think EPA should know this background as it contemplates moving forward.

Kevin

From: Jim McCarthy [mailto:jamesmccarthy@comcast.net]
Sent: Monday, August 09, 2010 5:54 PM
To: Bromberg, Kevin L.
Cc: japanek@ameritech.net
Subject: Costs - Technical projects and reports

For activity since the Comment Period closed on June 3, 2009, costs on the 
order of a million dollar are an appropriate ballpark estimate associated with 
the technical work and data development efforts, and this cost estimate is low 
if all factors are considered (e.g., commitment of in-house resources by 
companies; fees for outside counsel that participated in the MACT floor 
projects).  The price tag would surely be well over a $million if those costs 
are included.

This includes several projects in the last half of 2009 and early 2010, but 
the bulk of the costs are associated with the MACT floor activity (testing and 
data gathering).  Some approximate estimates for “outside”
costs (e.g., from technical consulting support, test teams and excluding 
internal costs and outside counsel costs) follow:

      -       Emissions / MACT floor testing in the summer and fall of
      2010 along with data analysis and reporting:  $600 - $750k  (this
      includes the 4SRB testing / reporting and data gathering /
      reporting for lean burn engines)
      -       Control Cost report – data gathering and reporting:  $75
      to over $100k
      -       Method 323 field testing, historical test reports / data
      investigation, and method validation:  $150 - $200k

In addition, this does NOT include the significant level of effort in January 
through June 3, 2009 for technical consulting services  (i.e., once again this 
excludes outside counsel and internal costs) to conduct background 
investigations and develop extensive comments on the Proposed Rule (a 
significant level of effort was required due to gross deficiencies in support 
data (emissions, costs, etc.) and docket documentation. Those costs in the 
first half of 2009 were on the order of $250k to $350k.

These are approximations but these estimates are in the ballpark and probably 
“soft” in several cases.
