MEMORANDUM
Eastern
Research
Group,
Inc.
110
Hartwell
Avenue
Lexington,
MA
02421
Date:
July
29,
2003
To:
James
Covington,
EPA
From:
Cal
Franz,
ERG
Re:
MPP
Industry
Cost
Effectiveness
Analysis
for
Small
Processors
in
Subcategories
A
through
D,
and
K
ERG
estimated
the
cost
effectiveness
of
pollutant
removals
for
small
processors
in
subcategories
A
through
D
and
K
based
on
costs
received
from
Tetra
Tech
on
June
27
and
August
6,
2003,
and
loads
received
from
Tetra
Tech
on
July
3
and
August
7,
2003.
The
attached
tables
show
the
results
of
these
analyses.
All
results
are
presented
by
subcategory.

This
analysis
only
examines
impact
to
small
processors:
those
that
produce
less
than
50
million
pounds
of
meat
products
per
year
in
Subcategory
A
through
D,
and
those
that
produce
less
than
10
million
pounds
of
meat
products
per
year
in
Subcategory
K.
In
all
respects,
the
methodology
for
analyzing
small
processors
in
these
two
subcategories
is
identical
to
the
methodology
for
analyzing
large
processors
in
the
same
subcategories.
EPA
did,
however,
examine
the
cost
effectiveness
of
Option
1
for
small
processors;
this
option
was
not
analyzed
for
nonsmall
processors
in
these
two
subcategories.

To
interpret
these
tables,
an
option
is
considered
 
dominated 
if,
in
total,
facilities:
 
incur
costs
but
have
zero
removals,
 
incur
costs
that
are
higher
than
the
previous
option,
but
have
lower
removals,
or
 
incur
costs
that
are
higher
than
the
previous
option,
but
have
no
additional
removals.

In
subcategory
A
through
D:
C
incremental
cost
reasonableness
ranges
from
$
12
per
pound
(
Option
2.5)
to
$
283
per
pound
(
Option
4),
C
the
most
cost
effective
option
for
removing
conventional
pollutants
is
Option
1
($
67
per
pound),
C
the
most
cost
effective
option
for
removing
total
nutrients
is
Option
2.5
($
27
per
pound).

In
subcategory
K:
C
incremental
cost
reasonableness
ranges
from
$
200
per
pound
(
Option
2.5)
to
$
378
per
pound
(
Option
1),
C
the
most
cost
effective
option
for
removing
conventional
pollutants
is
Option
1
($
163
per
pound),
C
the
most
cost
effective
option
for
removing
total
nutrients
is
Option
4
($
218
per
pound).

1
Table
1
Total
Compliance
Costs
by
Subcategory
($
1999)

Small
Facilities:
Subcategory
A
through
D
and
Subcategory
K
One­
Time
Capital
O&
M
Non­
capital
Post­
tax
Pre­
tax
Option
Costs
Costs
Costs
Annualized
Annualized
Subcategory
A
through
D
Option
1
CBI
CBI
CBI
CBI
$
400
­
$
700
Option
2
CBI
CBI
CBI
CBI
$
500
­
$
750
Option
2+
P
CBI
CBI
CBI
CBI
$
1,000
­
$
2,500
Option
2.5
CBI
CBI
CBI
CBI
$
750
­
$
1,500
Option
2.5+
P
CBI
CBI
CBI
CBI
$
2,000
­
$
4,000
Option
4
CBI
CBI
CBI
CBI
$
2,500
­
$
5,000
Subcategory
K
Option
1
CBI
CBI
CBI
CBI
$
750
­
$
1,000
Option
2
CBI
CBI
CBI
CBI
$
1,000
­
$
2,500
Option
2+
P
CBI
CBI
CBI
CBI
$
2,500
­
$
5,000
Option
2.5
CBI
CBI
CBI
CBI
$
1,000
­
$
2,500
Option
2.5+
P
CBI
CBI
CBI
CBI
$
2,500
­
$
5,000
Option
4
CBI
CBI
CBI
CBI
$
3,000
­
$
6,000
Table
2
Incremental
Cost­
Effectiveness
of
Pollution
Control
Options:
Toxics
and
Nonconventionals
Small
Facilities:
Subcategory
A
through
D
and
Subcategory
K
Average
Incremental
Pre­
tax
Pounds
Cost
Cost
Pre­
tax
Pounds
Cost
Cost
Annualized
Equivalent
Effectiveness
Effectiveness
Annualized
Equivalent
Effectiveness
Effectiveness
Option
Costs
($
1999)
Removed
(
PE)
($
1999/
PE)
($
1981/
PE)
Costs
($
1999)
Removed
(
PE)
($
1999/
PE)
($
1981/
PE)

Subcategory
A
through
D
Baseline
$
0
0
NA
NA
NA
NA
NA
NA
Option
1
CBI
CBI
Undefined
Undefined
DOM
DOM
DOM
DOM
Option
2
CBI
CBI
$
247,296
$
144,280
CBI
CBI
$
247,296
$
144,280
Option
2+
P
CBI
CBI
$
697,228
$
406,783
DOM
DOM
DOM
DOM
Option
2.5
CBI
CBI
$
215,962
$
125,998
CBI
CBI
$
185,709
$
108,348
Option
2.5+
P
CBI
CBI
$
436,975
$
254,944
DOM
DOM
DOM
DOM
Option
4
CBI
CBI
$
477,163
$
278,391
CBI
CBI
$
3,080,008
$
1,796,968
Subcategory
K
Baseline
$
0
0
NA
NA
NA
NA
NA
NA
Option
1
CBI
CBI
Undefined
Undefined
DOM
DOM
DOM
DOM
Option
2
CBI
CBI
$
818,347
$
477,448
CBI
CBI
$
818,347
$
477,448
Option
2+
P
CBI
CBI
$
1,901,965
$
1,109,663
DOM
DOM
DOM
DOM
Option
2.5
CBI
CBI
$
847,776
$
494,618
CBI
CBI
$
955,528
$
557,483
Option
2.5+
P
CBI
CBI
$
1,698,921
$
991,201
DOM
DOM
DOM
DOM
Option
4
CBI
CBI
$
1,441,533
$
841,033
CBI
CBI
$
2,577,471
$
1,503,773
DOM:
Option
is
dominated;
it
either
has
(
1)
higher
cost
than
following
option,
resulting
in
a
negative
incremental
CE,
or
(
2)
it
has
higher
cost
than
the
previous
option
but
no
additional
removals,
resulting
in
an
undefined
incremental
CE.
Table
3
Incremental
Cost
Reasonableness
of
Pollution
Control
Options:
BOD,
Total
Phosphorus,
&
Total
Nitrogen
Small
Facilities:
Subcategory
A
through
D
and
Subcategory
K
Average
Incremental
Pre­
tax
Cost
Pre­
tax
Cost
Annualized
Pounds
Effectiveness
Annualized
Pounds
Effectiveness
Option
Costs
($
1999)
Removed
($
1999/
pound)
Costs
($
1999)
Removed
($
1999/
pound)

Subcategory
A
through
D
Baseline
$
0
0
NA
NA
NA
NA
Option
1
CBI
CBI
$
102
CBI
CBI
$
102
Option
2
CBI
CBI
$
103
DOM
DOM
DOM
Option
2+
P
CBI
CBI
$
290
DOM
DOM
DOM
Option
2.5
CBI
CBI
$
24
CBI
CBI
$
12
Option
2.5+
P
CBI
CBI
$
48
DOM
DOM
DOM
Option
4
CBI
CBI
$
51
CBI
CBI
$
283
Subcategory
K
Baseline
$
0
0
NA
NA
NA
NA
Option
1
CBI
CBI
$
378
CBI
CBI
$
378
Option
2
CBI
CBI
$
529
DOM
DOM
DOM
Option
2+
P
CBI
CBI
$
1,228
DOM
DOM
DOM
Option
2.5
CBI
CBI
$
268
CBI
CBI
$
200
Option
2.5+
P
CBI
CBI
$
538
DOM
DOM
DOM
Option
4
CBI
CBI
$
228
CBI
CBI
$
208
DOM:
Option
is
dominated;
it
either
has
(
1)
higher
cost
than
following
option,
resulting
in
a
negative
incremental
CE,
or
(
2)
it
has
higher
cost
than
the
previous
option
but
no
additional
removals,
resulting
in
an
undefined
incremental
CE.
Table
4
Incremental
Cost­
Effectiveness
of
Pollution
Control
Options:
Conventional
Pollutants
Small
Facilities:
Subcategory
A
through
D
and
Subcategory
K
Average
Incremental
Pre­
tax
Cost
Pre­
tax
Cost
Annualized
Pounds
Effectiveness
Annualized
Pounds
Effectiveness
Option
Costs
($
1999)
Removed
($
1999/
pound)
Costs
($
1999)
Removed
($
1999/
pound)

Subcategory
A
through
D
Baseline
$
0
0
NA
NA
NA
NA
Option
1
CBI
CBI
$
67
CBI
CBI
$
67
Option
2
CBI
CBI
$
68
DOM
DOM
DOM
Option
2+
P
CBI
CBI
$
191
DOM
DOM
DOM
Option
2.5
CBI
CBI
$
120
DOM
DOM
DOM
Option
2.5+
P
CBI
CBI
$
243
DOM
DOM
DOM
Option
4
CBI
CBI
$
244
CBI
CBI
$
1,122
Subcategory
K
Baseline
$
0
0
NA
NA
NA
NA
Option
1
CBI
CBI
$
163
CBI
CBI
$
163
Option
2
CBI
CBI
$
228
DOM
DOM
DOM
Option
2+
P
CBI
CBI
$
530
DOM
DOM
DOM
Option
2.5
CBI
CBI
$
301
DOM
DOM
DOM
Option
2.5+
P
CBI
CBI
$
602
DOM
DOM
DOM
Option
4
CBI
CBI
$
537
CBI
CBI
$
1,369
DOM:
Option
is
dominated;
it
either
has
(
1)
higher
cost
than
following
option,
resulting
in
a
negative
incremental
CE,
or
(
2)
it
has
higher
cost
than
the
previous
option
but
no
additional
removals,
resulting
in
an
undefined
incremental
CE.
Table
5
Incremental
Nutrient
Cost­
Effectiveness
of
Pollution
Control
Options:
Total
Nutrients
Small
Facilities:
Subcategory
A
through
D
and
Subcategory
K
Average
Incremental
Pre­
tax
Cost
Pre­
tax
Cost
Annualized
Pounds
Effectiveness
Annualized
Pounds
Effectiveness
Option
Costs
($
1999)
Removed
($
1999/
pound)
Costs
($
1999)
Removed
($
1999/
pound)

Subcategory
A
through
D
Baseline
$
0
0
NA
NA
NA
NA
Option
1
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2+
P
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2.5
CBI
CBI
$
27
CBI
CBI
$
27
Option
2.5+
P
CBI
CBI
$
55
DOM
DOM
DOM
Option
4
CBI
CBI
$
58
CBI
CBI
$
291
Subcategory
K
Baseline
$
0
0
NA
NA
NA
NA
Option
1
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2+
P
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2.5
CBI
CBI
$
436
CBI
CBI
$
436
Option
2.5+
P
CBI
CBI
$
874
DOM
DOM
DOM
Option
4
CBI
CBI
$
271
CBI
CBI
$
218
DOM:
Option
is
dominated;
it
either
has
(
1)
higher
cost
than
following
option,
resulting
in
a
negative
incremental
CE,
or
(
2)
it
has
higher
cost
than
the
previous
option
but
no
additional
removals,
resulting
in
an
undefined
incremental
CE.
Table
6
Incremental
Nutrient
Cost­
Effectiveness
of
Pollution
Control
Options:
Total
Phosphorus
Small
Facilities:
Subcategory
A
through
D
and
Subcategory
K
Average
Incremental
Pre­
tax
Cost
Pre­
tax
Cost
Annualized
Pounds
Effectiveness
Annualized
Pounds
Effectiveness
Option
Costs
($
1999)
Removed
($
1999/
pound)
Costs
($
1999)
Removed
($
1999/
pound)

Subcategory
A
through
D
Baseline
$
0
0
NA
NA
NA
NA
Option
1
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2+
P
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2.5
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2.5+
P
CBI
CBI
Undefined
DOM
DOM
DOM
Option
4
CBI
CBI
Undefined
DOM
DOM
DOM
Subcategory
K
Baseline
$
0
0
NA
NA
NA
NA
Option
1
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2+
P
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2.5
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2.5+
P
CBI
CBI
Undefined
DOM
DOM
DOM
Option
4
CBI
CBI
$
25,324
CBI
CBI
$
25,324
DOM:
Option
is
dominated;
it
either
has
(
1)
higher
cost
than
following
option,
resulting
in
a
negative
incremental
CE,
or
(
2)
it
has
higher
cost
than
the
previous
option
but
no
additional
removals,
resulting
in
an
undefined
incremental
CE.
Table
7
Incremental
Nutrient
Cost­
Effectiveness
of
Pollution
Control
Options:
Total
Nitrogen
Small
Facilities:
Subcategory
A
through
D
and
Subcategory
K
Average
Incremental
Pre­
tax
Cost
Pre­
tax
Cost
Annualized
Pounds
Effectiveness
Annualized
Pounds
Effectiveness
Option
Costs
($
1999)
Removed
($
1999/
pound)
Costs
($
1999)
Removed
($
1999/
pound)

Subcategory
A
through
D
Baseline
$
0
0
NA
NA
NA
NA
Option
1
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2+
P
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2.5
CBI
CBI
$
27
CBI
CBI
$
27
Option
2.5+
P
CBI
CBI
$
55
DOM
DOM
DOM
Option
4
CBI
CBI
$
58
CBI
CBI
$
291
Subcategory
K
Baseline
$
0
0
NA
NA
NA
NA
Option
1
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2+
P
CBI
CBI
Undefined
DOM
DOM
DOM
Option
2.5
CBI
CBI
$
436
CBI
CBI
$
436
Option
2.5+
P
CBI
CBI
$
874
DOM
DOM
DOM
Option
4
CBI
CBI
$
274
CBI
CBI
$
222
DOM:
Option
is
dominated;
it
either
has
(
1)
higher
cost
than
following
option,
resulting
in
a
negative
incremental
CE,
or
(
2)
it
has
higher
cost
than
the
previous
option
but
no
additional
removals,
resulting
in
an
undefined
incremental
CE.
Table
8A
Pollutant
Removals
by
Option,
Subcategory
A
through
D
Small
Facilities:
Subcategory
A
through
D
and
Subcategory
K
Removals
(
Pounds
per
Year)
Toxic
Removals
(
Pounds
Equivalent
per
Year)

Weighting
Pollutant
Option
1
Option
2
Option
2+
P
Option
2.5
Option
2.5+
P
Option
4
Factor
Option
1
Option
2
Option
2+
P
Option
2.5
Option
2.5+
P
Option
4
Toxics
Ammonia
as
Nitrogen
0
CBI
CBI
CBI
CBI
CBI
1.83E­
003
0.0
CBI
CBI
CBI
CBI
CBI
Barium
0
0
0
0
0
0
1.99E­
003
0.0
0.0
0.0
0.0
0.0
0.0
Carbaryl
0
0
0
0
0
0
2.80E+
002
0.0
0.0
0.0
0.0
0.0
0.0
Chromium
0
0
0
0
0
0
7.57E­
002
0.0
0.0
0.0
0.0
0.0
0.0
Cis­
permethrin
0
0
0
0
0
0
4.54E+
000
0.0
0.0
0.0
0.0
0.0
0.0
Copper
0
0
0
0
0
0
6.27E­
001
0.0
0.0
0.0
0.0
0.0
0.0
Manganese
0
0
0
0
0
0
7.04E­
002
0.0
0.0
0.0
0.0
0.0
0.0
Molybdenum
0
0
0
0
0
0
2.01E­
001
0.0
0.0
0.0
0.0
0.0
0.0
Nickel
0
0
0
0
0
0
1.09E­
001
0.0
0.0
0.0
0.0
0.0
0.0
Nitrate/
Nitrite
0
0
0
CBI
CBI
CBI
6.20E­
005
0.0
0.0
0.0
CBI
CBI
CBI
Titanium
0
0
0
0
0
0
2.93E­
002
0.0
0.0
0.0
0.0
0.0
0.0
Trans­
permethrin
0
0
0
0
0
0
4.54E+
000
0.0
0.0
0.0
0.0
0.0
0.0
Vanadium
0
0
0
0
0
0
6.22E­
001
0.0
0.0
0.0
0.0
0.0
0.0
Zinc
0
0
0
0
0
0
4.67E­
002
0.0
0.0
0.0
0.0
0.0
0.0
Total
0
CBI
CBI
CBI
CBI
CBI
0.0
CBI
CBI
CBI
CBI
CBI
Pollutants
for
Cost
Reasonableness
Test
5­
Day
Biochemical
Oxygen
Demand
CBI
CBI
CBI
CBI
CBI
CBI
NA
Total
Phosphorus
0
0
0
0
0
0
NA
Total
Nitrogen
0
0
0
CBI
CBI
CBI
NA
Total
CBI
CBI
CBI
CBI
CBI
CBI
Conventionals
5­
Day
Biochemical
Oxygen
Demand
CBI
CBI
CBI
CBI
CBI
CBI
NA
Oil
&
Grease
(
HEM)
0
0
0
0
0
0
NA
Total
Suspended
Solids
CBI
CBI
CBI
CBI
CBI
CBI
NA
Total
CBI
CBI
CBI
CBI
CBI
CBI
Nutrients
Total
Phosphorus
0
0
0
0
0
0
NA
Total
Nitrogen
0
0
0
CBI
CBI
CBI
NA
Total
0
0
0
CBI
CBI
CBI
Table
8B
Pollutant
Removals
by
Option,
Subcategory
K
Small
Facilities:
Subcategory
A
through
D
and
Subcategory
K
Removals
(
Pounds
per
Year)
Toxic
Removals
(
Pounds
Equivalent
per
Year)

Weighting
Pollutant
Option
1
Option
2
Option
2+
P
Option
2.5
Option
2.5+
P
Option
4
Factor
Option
1
Option
2
Option
2+
P
Option
2.5
Option
2.5+
P
Option
4
Toxics
Ammonia
as
Nitrogen
0
CBI
CBI
CBI
CBI
CBI
1.83E­
003
0.0
CBI
CBI
CBI
CBI
CBI
Barium
0
0
0
0
0
0
1.99E­
003
0.0
0.0
0.0
0.0
0.0
0.0
Carbaryl
0
0
0
0
0
0
2.80E+
002
0.0
0.0
0.0
0.0
0.0
0.0
Chromium
0
0
0
0
0
0
7.57E­
002
0.0
0.0
0.0
0.0
0.0
0.0
Cis­
permethrin
0
0
0
0
0
0
4.54E+
000
0.0
0.0
0.0
0.0
0.0
0.0
Copper
0
0
0
0
0
0
6.27E­
001
0.0
0.0
0.0
0.0
0.0
0.0
Manganese
0
0
0
0
0
0
7.04E­
002
0.0
0.0
0.0
0.0
0.0
0.0
Molybdenum
0
0
0
0
0
0
2.01E­
001
0.0
0.0
0.0
0.0
0.0
0.0
Nickel
0
0
0
0
0
0
1.09E­
001
0.0
0.0
0.0
0.0
0.0
0.0
Nitrate/
Nitrite
0
0
0
CBI
CBI
CBI
6.20E­
005
0.0
0.0
0.0
CBI
CBI
CBI
Titanium
0
0
0
0
0
0
2.93E­
002
0.0
0.0
0.0
0.0
0.0
0.0
Trans­
permethrin
0
0
0
0
0
0
4.54E+
000
0.0
0.0
0.0
0.0
0.0
0.0
Vanadium
0
0
0
0
0
0
6.22E­
001
0.0
0.0
0.0
0.0
0.0
0.0
Zinc
0
0
0
0
0
0
4.67E­
002
0.0
0.0
0.0
0.0
0.0
0.0
Total
0
CBI
CBI
CBI
CBI
CBI
0.0
CBI
CBI
CBI
CBI
CBI
Pollutants
for
Cost
Reasonableness
Test
5­
Day
Biochemical
Oxygen
Demand
CBI
CBI
CBI
CBI
CBI
CBI
NA
Total
Phosphorus
0
0
0
0
0
CBI
NA
Total
Nitrogen
0
0
0
CBI
CBI
CBI
NA
Total
CBI
CBI
CBI
CBI
CBI
CBI
Conventionals
5­
Day
Biochemical
Oxygen
Demand
CBI
CBI
CBI
CBI
CBI
CBI
NA
Oil
&
Grease
(
HEM)
0
0
0
0
0
0
NA
Total
Suspended
Solids
CBI
CBI
CBI
CBI
CBI
CBI
NA
Total
CBI
CBI
CBI
CBI
CBI
CBI
Nutrients
Total
Phosphorus
0
0
0
0
0
CBI
NA
Total
Nitrogen
0
0
0
CBI
CBI
CBI
NA
Total
0
0
0
CBI
CBI
CBI
Appendix:
Table
1
Removals
of
Specified
Pollutants
by
Option
Small
Facilities:
Subcategory
A
through
D
and
Subcategory
K
Removals
(
Pounds
per
Year)

Pollutant
Option
1
Option
2
Option
2+
P
Option
2.5
Option
2.5+
P
Option
4
Subcategory
A
through
D
5­
Day
Biochemical
Oxygen
Demand
CBI
CBI
CBI
CBI
CBI
CBI
Total
Suspended
Solids
CBI
CBI
CBI
CBI
CBI
CBI
Chemical
Oxygen
Demand
0
0
0
0
0
0
Carbonaceous
Biochemical
Oxygen
Demand
CBI
CBI
CBI
CBI
CBI
CBI
Ammonia
as
Nitrogen
0
CBI
CBI
CBI
CBI
CBI
Total
Nitrogen
0
0
0
CBI
CBI
CBI
Total
Phosphorus
0
0
0
0
0
0
Nitrate/
Nitrite
0
0
0
CBI
CBI
CBI
Total
Kjeldahl
Nitrogen
0
CBI
CBI
CBI
CBI
CBI
Oil
&
Grease
(
HEM)
0
0
0
0
0
0
Subcategory
K
5­
Day
Biochemical
Oxygen
Demand
CBI
CBI
CBI
CBI
CBI
CBI
Total
Suspended
Solids
CBI
CBI
CBI
CBI
CBI
CBI
Chemical
Oxygen
Demand
CBI
CBI
CBI
CBI
CBI
CBI
Carbonaceous
Biochemical
Oxygen
Demand
CBI
CBI
CBI
CBI
CBI
CBI
Ammonia
as
Nitrogen
0
CBI
CBI
CBI
CBI
CBI
Total
Nitrogen
0
0
0
CBI
CBI
CBI
Total
Phosphorus
0
0
0
0
0
CBI
Nitrate/
Nitrite
0
0
0
CBI
CBI
CBI
Total
Kjeldahl
Nitrogen
0
CBI
CBI
CBI
CBI
CBI
Oil
&
Grease
(
HEM)
0
0
0
0
0
0
