Economic
Analysis
of
Proposed
Effluent
Guidelines
and
Standards
for
the
Construction
and
Development
Category
May
2002
Economic
Analysis
of
Proposed
Effluent
Guidelines
and
Standards
for
the
Construction
and
Development
Category
May
2002
United
States
Environmental
Protection
Agency
Office
of
Water
(
4303T)
1200
Pennsylvania
Avenue,
NW
Washington,
DC
20460
www.
epa.
gov/
waterscience/
guide/

EPA­
821­
R­
02­
008
ACKNOWLEDGMENTS
AND
DISCLAIMER
The
Construction
and
Development
Effluent
Guidelines
proposed
rule
and
support
documents
were
prepared
by
the
C&
D
Project
Team:
Eric
Strassler,
Project
Manager;
Jesse
Pritts,
P.
E.
,
Engineer;
George
Denning,
Economist;
Karen
Maher,
Environmental
Assessor;
and
Michael
G.
Lee,
Attorney.
Technical
support
for
this
Economic
Analysis
was
provided
by
Eastern
Research
Group,
Inc.
(
ERG)
,
of
Lexington,
MA.

Neither
the
United
States
government
nor
any
of
its
employees,
contractors,
subcontractors
or
other
employees
makes
any
warranty,
expressed
or
implied,
or
assumes
any
legal
liability
or
responsibility
for
any
third
party'
s
use
of,
or
the
results
of
such
use
of,
any
information,
apparatus,
product
or
process
discussed
in
this
report,
or
represents
that
its
use
by
such
a
third
party
would
not
infringe
on
privately
owned
rights.
Mention
of
trade
names
or
commercial
products
does
not
constitute
endorsement
by
EPA
or
recommendation
for
use.
CONTENTS
Page
EXECUTIVE
SUMMARY
ES.
1
INTRODUCTION
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ES­
1
ES.
2
INDUSTRY
PROFILE
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ES­
2
ES.
2.1
Data
Sources
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2
ES.
2.2
Industry
Description
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3
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2.2.1
Number
of
Establishments
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6
ES.
2.2.2
Employment
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ES.
2.2.3
Revenues
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8
ES.
2.2.4
Number
of
Potentially
Regulated
Businesses
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ES.
2.2.5
Small
Entities
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11
ES.
2.3
Industry
Dynamics
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12
ES.
3
REGULATORY
OPTIONS
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14
ES.
3.1
Current
Regulatory
Status
of
the
C&
D
Industry
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ES­
14
ES.
3.2
Summary
of
Proposed
Regulatory
Options
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15
ES.
4
ECONOMIC
IMPACT
ANALYSIS
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16
ES.
4.1
Impacts
on
Model
Construction
Projects
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17
ES.
4.2
Impacts
on
Model
Construction
Firms
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18
ES.
4.2.1
Impacts
on
Model
Firm
Financial
Ratios
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18
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4.2.2
Closures
and
Employment
Losses.
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20
ES.
4.2.3
Barriers
to
Entry
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22
ES.
4.3
Impacts
on
National
Construction
Markets
and
the
National
Economy
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24
ES.
5
SMALL
ENTITY
IMPACT
ANALYSIS
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26
ES.
5.1
Definition
of
Affected
Small
Entities
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5.2
Small
Entity
Impacts
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27
ES.
6
BENEFITS
ANALYSIS
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ES.
6.1
Benefits
Methodology
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ES.
6.2
Environmental
Assessment
and
Benefits
Analysis
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ES.
6.2.1
Overview
of
Environmental
Assessment
and
Benefits
Analysis
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ES­
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ES.
6.2.2
Avoided
Water
Treatment
Costs
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ES­
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ES.
6.2.3
Avoided
Loss
of
Water
Storage
Capacity
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ES.
6.2.4
Avoided
Navigational
Dredging
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ES.
6.2.5
Non­
quantified
Benefits
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ES­
32
ES.
7
SOCIAL
COSTS
AND
BENEFITS
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ES­
32
ES.
8
ANALYSIS
OF
OTHER
IMPACTS
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33
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8.1
Unfunded
Mandates
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33
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8.2
Environmental
Justice
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33
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8.3
Children
 
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Health
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34
ES.
9
REFERENCES
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ES­
35
i
CONTENTS
(
cont.
)

Page
CHAPTER
ONE
INTRODUCTION
1.1
EXISTING
REGULATORY
FRAMEWORK
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1­
2
1.1.1
NPDES
Permit
Regulation
of
the
C&
D
Industry
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1­
2
1.2
PURPOSE
OF
THE
PROPOSED
RULE
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1­
4
1.3
INDUSTRIES
AFFECTED
BY
THE
PROPOSED
C&
D
EFFLUENT
GUIDELINES
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1­
5
1.4
OVERVIEW
OF
KEY
DATA
SOURCES
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1­
6
1.5
REPORT
ORGANIZATION
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1­
7
CHAPTER
TWO
ECONOMIC
PROFILE
OF
THE
CONSTRUCTION
AND
DEVELOPMENT
INDUSTRY
2.1
INTRODUCTION
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2­
1
2.1.1
Recent
Trends
in
the
C&
D
Industry
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2­
2
2.1.2
Data
Sources
Used
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2­
3
2.1.3
Organization
of
this
Chapter
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2­
4
2.2
INDUSTRY
DEFINITION
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2­
5
2.2.1
Basis
for
Regulation
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2­
5
2.2.2
Industry
Definition
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2­
6
2.3
INDUSTRY
CHARACTERISTICS
.
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2­
8
2.3.1
Establishment­
Level
Data
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2­
9
2.3.1.1
Number
and
Size
of
Establishments
.
.
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2­
9
2.3.1.2
Legal
Form
of
Organization
.
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2­
13
2.3.1.3
Geographic
Distribution
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2­
15
2.3.1.4
Employment
.
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2­
15
2.3.1.5
Payrolls
and
Benefits
.
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2­
17
2.3.1.6
Specialization
.
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2­
18
2.3.2
Firm­
Level
Data
.
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2­
21
2.3.2.1
Number
and
Size
of
Firms
.
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2­
21
2.3.2.2
Firm­
Level
Revenues
.
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2­
22
2.3.3
Number
of
Small
Entities
.
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2­
25
2.3.4
Entities
Not
Covered
by
the
Proposed
Rule
.
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2­
26
2.3.4.1
Establishments
Engaged
in
Remodeling
.
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2­
26
2.3.4.2
Establishments
That
Are
Not
NPDES
Permttees
.
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2­
27
2.3.5
Number
of
Potentially
Affected
Entities
.
.
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2­
28
2.4
MARKET
SUPPLY
AND
DEMAND
.
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2­
30
2.4.1
Characteristics
of
Construction
Supply
.
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2­
31
2.4.1.1
Residential
Building
.
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2­
31
2.4.1.2
Nonresidential
Building
.
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2­
37
ii
CONTENTS
(
cont.
)

Page
2.4.1.3
Heavy
Construction
.
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2­
40
2.4.1.4
Characterization
of
Supply
.
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2­
45
2.4.1.5
Supply
Trends
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2­
47
2.4.2
Characteristics
of
Construction
Demand
.
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.
2­
51
2.4.2.1
Demand
Factors
Affecting
Construction
and
Development
Activities
.
.
.
.
.
2­
51
2.4.2.2
Housing
Demand
and
Elasticity
.
.
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2­
52
2.4.2.3
Impact
of
Regulation
on
Housing
Demand
.
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2­
53
2.4.2.4
Trends
in
New
Homes
Sold
.
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2­
54
2.4.2.5
Nonresidential
Demand
Characteristics
.
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2­
55
2.4.2.6
Heavy
Construction
Demand
Characteristics
.
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2­
56
2.5
ECONOMIC
AND
FINANCIAL
CHARACTERISTICS
.
.
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2­
59
2.5.1
Value
of
Work
Done
.
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2­
59
2.5.2
Selected
Costs
.
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2­
64
2.5.2.1
All
Costs
.
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2­
64
2.5.2.2
Machinery
and
Equipment
Costs
.
.
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2­
64
2.5.3
Capital
Expenditures
and
Depreciation
.
.
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2­
68
2.5.4
Value
of
Inventories
.
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2­
69
2.6
KEY
BUSINESS
INDICATORS
AND
RATIOS
.
.
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2­
71
2.7
INDUSTRY
GROWTH
.
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2­
77
2.8
INTERNATIONAL
COMPETITIVENESS
.
.
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2­
79
2.9
REFERENCES
.
.
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.
2­
80
Appendix
2A
Additional
Detailed
5­
Digit
NAICS
Tables
Appendix
2B
Specialization
Within
the
C&
D
Industries,
Categorized
by
Value
of
Construction
Work
Appendix
2C
Definitions
of
Key
Business
Ratios
from
Dun
&
Bradstreet
Appendix
2D
Summary
Statistics
for
the
C&
D
Industries,
by
NAICS
Code
CHAPTER
THREE
DESCRIPTION
OF
PROPOSED
RULE
AND
REGULATORY
OPTIONS
3.1
EFFLUENT
LIMITATIONS
GUIDELINES
AND
STANDARDS
.
.
.
.
.
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.
.
3­
1
3.2
REQUIREMENTS
UNDER
THE
EXISTING
CONSTRUCTION
GENERAL
PERMIT
.
.
.
.
3­
2
3.3
SUMMARY
OF
REGULATORY
OPTIONS/
TECHNOLOGY
ALTERNATIVES
.
.
.
.
.
.
.
.
.
3­
3
3.3.1
Option
1
.
.
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3­
4
3.3.2
Option
2
.
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3­
5
3.3.3
Option
3
.
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.
3­
11
iii
CONTENTS
(
cont.
)

Page
CHAPTER
FOUR
ECONOMIC
IMPACT
METHODOLOGY
4.1
OVERVIEW
OF
ECONOMIC
IMPACT
ANALYSIS
METHODOLOGY
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4­
1
4.1.1
Compliance
and
Baseline
Assumptions
.
.
.
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.
4­
2
4.1.2
Cost
Pass
Through
Assumptions
.
.
.
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4­
3
4.1.3
Operation
and
Maintenance
Costs
.
.
.
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4­
6
4.1.4
Impacts
Associated
With
NSPS
.
.
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4­
6
4.2
IMPACTS
ON
MODEL
PROJECTS
.
.
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4­
7
4.2.1
Description
of
Model
Project
Approach
.
.
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4­
8
4.2.2
Treatment
of
Nonbuilding
Construction
Projects
.
.
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4­
9
4.2.3
Description
of
Model
Projects
.
.
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4­
9
4.2.3.1
Residential
Single­
family
Development
.
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4­
10
4.2.3.2
Residential
Multifamily
Development
.
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4­
13
4.2.3.3
Commercial
Development
.
.
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4­
13
4.2.3.4
Industrial
Development
.
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4­
14
4.2.4
Cost
Pass
Through
Assumptions
.
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4­
14
4.2.5
Inputs
to
the
Model
Project
Analysis
.
.
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4­
14
4.2.6
Model
Project
Analysis
Approach
.
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4­
17
4.2.6.1
Baseline
Model
Project
Performance
.
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4­
17
4.2.6.2
Results
of
Model
Project
Analysis
.
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4­
18
4.2.7
Model
Nonbuilding
Project
Analysis
.
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4­
22
4.3
IMPACTS
ON
MODEL
ESTABLISHMENTS
.
.
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4­
25
4.3.1
Model
Establishment
Analysis
.
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4­
25
4.3.1.1
Inputs
to
the
Model
Establishment
Analysis
.
.
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4­
25
4.3.1.2
Balance
Sheet
and
Income
Statement
for
Model
Establishment
.
.
.
.
.
.
.
.
.
.
4­
26
4.3.1.3
Methodology
for
Analysis
of
Regulatory
Impacts
on
Model
Establishment
.
.
.
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4­
28
4.3.1.4
Analysis
of
Financial
Ratios
for
Model
Establishment
.
.
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4­
30
4.3.1.5
Compliance
Cost
Inputs
into
Financial
Ratio
Analysis
.
.
.
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.
4­
33
4.3.2
Extension
of
Model
Facility
Analysis
to
Project
Industry
Closures
.
.
.
.
.
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.
.
.
4­
35
4.3.2.1
Estimation
of
Affected
Establishments
and
Employment
.
.
.
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.
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.
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.
4­
35
4.3.2.2
Closure
and
Employment
Impacts
Based
on
Financial
Ratio
Analysis
.
.
.
.
.
4­
38
4.3.2.3
Closure
and
Employment
Impacts
Based
on
Cashflow
Analysis
.
.
.
.
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.
.
.
4­
41
4.3.3
Analysis
of
Barriers
to
Entry
.
.
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4­
44
4.4
NATIONAL
COMPLIANCE
COSTS
.
.
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4­
45
4.4.1
National
Estimates
of
Disturbed
Acreage
.
.
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4­
45
4.4.2
Distribution
of
Acreage
by
Project
Type
.
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4­
46
4.4.3
Distribution
of
Acreage
by
Project
Size
.
.
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4­
54
4.4.4
Estimates
of
Acreage
Covered
by
Option
2
.
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4­
55
4.4.5
Operation
and
Maintenance
Costs
.
.
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4­
58
iv
CONTENTS
(
cont.
)

Page
4.5
IMPACTS
ON
THE
NATIONAL
HOUSING
MARKET
.
.
.
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4­
58
4.5.1
Description
of
National
Housing
Market
Model
.
.
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4­
58
4.5.1.1
Complete
Cost
Pass
Through
and
Housing
Affordability
.
.
.
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4­
58
4.5.1.2
National
Partial
Equilibrium
Modeling
.
.
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4­
63
4.5.1.3
Regional
Partial
Equilibrium
Modeling
and
the
Housing
Opportunity
Index
.
.
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4­
66
4.5.2
Inputs
to
the
National
Housing
Market
Model
.
.
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.
4­
69
4.5.3
Multifamily
and
Non­
Residential
Construction
Market
Models
.
.
.
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.
4­
69
4.6
NET
ECONOMIC
IMPACTS
.
.
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4­
72
4.6.1
Welfare
Effects
.
.
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4­
72
4.6.2
Regional
Impacts
.
.
.
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4­
73
4.6.3
International
Trade
.
.
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4­
74
4.7
GOVERNMENT
IMPACTS
.
.
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4­
75
4.7.1
Administrative
Costs
.
.
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4­
75
4.7.2
Compliance
Costs
.
.
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4­
75
4.8
REFERENCES
.
.
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4­
76
Appendix
4A
Data
and
Modeling
Assumptions
for
Model
Project
Analysis
Appendix
4B
Detailed
Description
of
Model
Parameters
and
Assumptions
Appendix
4C
Characteristics
of
Model
Establishments
CHAPTER
FIVE
ECONOMIC
IMPACT
ANALYSIS
RESULTS
5.1
OVERVIEW
OF
ECONOMIC
IMPACT
ANALYSIS
METHODOLOGY
.
.
.
.
.
.
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.
5­
1
5.2
ANALYSIS
OF
IMPACTS
ON
MODEL
PROJECTS
.
.
.
.
.
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5­
2
5.2.1
Cost
Pass
Through
Considerations
.
.
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5­
3
5.2.2
Model
Project
Baseline
Performance
.
.
.
.
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.
5­
3
5.2.3
Results
of
Model
Project
Analyses
.
.
.
.
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5­
5
5.2.4
Nonbuilding
Project
Analysis
Results
.
.
.
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.
5­
6
5.3
ANALYSIS
OF
NATIONAL
COMPLIANCE
COSTS
.
.
.
.
.
.
.
.
.
.
.
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.
.
.
.
.
.
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.
.
.
.
5­
7
5.4
ANALYSIS
OF
IMPACTS
ON
MODEL
ESTABLISHMENTS
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
.
.
.
.
5­
10
5.4.1
Building
Construction
.
.
.
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5­
10
5.4.2
Nonbuilding
Construction
.
.
.
.
.
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5­
14
5.5
ANALYSIS
OF
IMPACTS
ON
CLOSURES
AND
EMPLOYMENT
LOSSES
.
.
.
.
.
.
.
.
.
.
.
5­
16
5.5.1
Facility
Closures
.
.
.
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5­
17
5.5.2
Employment
Losses
.
.
.
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.
5­
18
5.6
ANALYSIS
OF
BARRIER
TO
ENTRY
.
.
.
.
.
.
.
.
.
.
.
.
.
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5­
20
5.6.1
Building
Construction
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5­
20
5.6.2
Nonbuilding
Construction
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5­
22
v
CONTENTS
(
cont.
)

Page
5.7
ANALYSIS
OF
IMPACTS
ON
NATIONAL
CONSTRUCTION
MARKETS
.
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5­
23
5.7.1
Residential
Construction
Markets
.
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5­
24
5.7.1.1
Housing
Affordability
.
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5­
24
5.7.1.2
Housing
Opportunity
Index
.
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5­
24
5.7.1.3
Single­
Family
Housing
Prices
and
Quantities
.
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5­
26
5.7.1.4
Multifamily
Housing
Prices
and
Quantities
.
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5­
26
5.7.2
Non­
Residential
Construction
Markets
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5­
27
5.7.2.1
Commercial
Space
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5­
27
5.7.2.2
Industrial
Space
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5­
28
5.7.3
Output
and
Employment
.
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5­
29
5.7.4
Changes
in
Welfare
Measures
.
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5­
30
5.7.5
Regional
Effects
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5­
31
5.8
IMPACTS
ON
GOVERNMENTAL
UNITS
.
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5­
35
5.8.1
Construction
Program
Administration
.
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5­
35
5.8.2
Government
Construction
Costs
.
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5­
36
5.9
OTHER
IMPACTS
.
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5­
37
5.9.1
Requirements
of
Executive
Order
12866
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5­
37
5.9.2
Environmental
Justice
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5­
39
5.9.3
Children
 
s
Health
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5­
39
5.10
REFERENCES
.
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5­
41
Appendix
5A
Closure
and
Employment
Loss
Analysis
Results
 
Cash
Flow
Analysis
Appendix
5B
Sensitivity
Analysis
for
the
National
Partial
Equilibrium
Model
Appendix
5C
Baseline
Analysis
CHAPTER
SIX
INITIAL
REGULATORY
FLEXIBILITY
ANALYSIS
6.1
INTRODUCTION
TO
THE
INITIAL
REGULATORY
FLEXIBILITY
ANALYSIS
.
.
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6­
1
6.2
INITIAL
ASSESSMENT
.
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6­
2
6.2.1
Definition
of
Affected
Small
Entities
.
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6­
2
6.2.2
Number
of
Small
Businesses
Affected
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6­
4
6.2.2.1
Number
of
Establishments
Affected
.
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6­
5
6.2.2.2
Number
of
Businesses
Affected
.
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6­
6
6.2.2.3
Number
of
Small
Businesses
Affected
.
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6­
9
6.3
EPA
COMPLIANCE
WITH
RFA
REQUIREMENTS
.
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6­
10
6.3.1
Outreach
and
Small
Business
Advocacy
Review
.
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6­
10
6.3.2
EPA
 
s
Initial
Regulatory
Flexibility
Analysis
.
.
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6­
11
6.3.2.1
Reasons
EPA
is
Considering
the
Proposed
Rule
.
.
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6­
12
6.3.2.2
Objectives
and
Legal
Basis
for
the
Proposed
Rule
.
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6­
12
6.3.2.3
Description
and
Estimate
of
Number
of
Small
Entities
Affected
.
.
.
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.
.
.
6­
14
vi
CONTENTS
(
cont.
)

Page
6.3.2.4
Description
of
Proposed
Recordkeeping,
Reporting,
and
Other
Requirements
.
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6­
15
6.3.2.5
Identification
of
Relevant
Federal
Rules
That
May
Duplicate,
Overlap,
or
Conflict
with
the
Proposed
Regulations
.
.
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6­
16
6.3.2.6
Significant
Regulatory
Alternatives
.
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6­
17
6.4
EPA
 
S
ANALYSIS
OF
SMALL
BUSINESS
IMPACTS
.
.
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6­
18
6.4.1
Classification
of
Model
Facilities
for
Impact
Analysis
.
.
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6­
18
6.4.2
Revenue
Test
Methodology
.
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6­
21
6.4.2.1
Development
of
Revenue
Distributions
.
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6­
22
6.4.2.2
Application
of
Revenue
Distributions
to
Estimating
Small
Business
Impacts
.
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6­
24
6.4.3
Small
Business
Impact
Analysis
Results
.
.
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6­
26
6.5
REFERENCES
.
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6­
31
CHAPTER
SEVEN
BENEFITS
METHODOLOGY
7.1
PREVIOUS
APPROACHES
TO
BENEFITS
ASSESSMENT
.
.
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.
7­
1
7.2
BENEFITS
CATEGORIES
CONSIDERED
.
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7­
2
7.2.1
Decreased
Erosion
and
Sediment
Generation
.
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7­
4
7.2.1.1
Water
Storage
Capacity
.
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7­
4
7.2.1.2
Navigational
Dredging
.
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7­
6
7.2.2
Reduced
In­
Stream
TSS
and
Sediment
Concentration
.
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.
7­
7
7.2.3
Non­
Quantified
Benefits
.
.
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7­
9
7.2.3.1
Water
Contact
Recreation
.
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7­
9
7.2.3.2
Biodiversity
Effects
.
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7­
10
7.2.3.3
Other
Sources
of
Benefits
.
.
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7­
10
7.3
CONCLUSION
.
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7­
11
7.4
REFERENCES
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7­
12
CHAPTER
EIGHT
BENEFITS
ASSESSMENT
RESULTS
8.1
ENVIRONMENTAL
ASSESSMENT
RESULTS
.
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8­
1
8.2
BENEFITS
ASSESSMENT
RESULTS
.
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8­
1
8.3
REFERENCES
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8­
3
vii
CONTENTS
(
cont.
)

Page
CHAPTER
NINE
COSTS
AND
BENEFITS
OF
THE
PROPOSED
RULE
9.1
INTRODUCTION
.
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9­
1
9.2
SOCIAL
COSTS
OF
THE
RULE
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9­
1
9.2.1
Direct
Social
Costs
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9­
1
9.2.1.1
Compliance
Costs
.
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9­
2
9.2.1.2
Government
Regulatory
Costs
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9­
2
9.2.2
Social
Welfare
Losses
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9­
3
9.2.3
Transitional
Effects
.
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9­
4
9.3
INDIRECT
EFFECTS
.
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9­
4
9.4
COMPARISON
OF
ESTIMATED
COSTS
AND
BENEFITS
.
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9­
5
CHAPTER
TEN
UNFUNDED
MANDATES
REFORM
ACT
10.1
INTRODUCTION
.
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10­
1
10.2
ANALYSIS
AND
RESULTS
.
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10­
2
10.3
REFERENCES
.
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10­
5
DOCUMENT
INDEX
.
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11­
1
viii
LIST
OF
TABLES
Table
Page
ES­
1
Industry
Definition
for
Construction
and
Development
Industry
Profile
.
.
.
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.
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.
.
ES­
5
ES­
2
Number
of
Establishments
in
Construction
and
Development
Industries,
1997
vs.
1992
.
.
.
ES­
6
ES­
3
Number
of
Employees
in
the
Construction
and
Development
Industries,
Establishments
with
Payroll
.
.
.
.
.
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ES­
7
ES­
4
Value
of
Construction
Work
.
.
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ES­
8
ES­
5
Number
of
Establishments
Potentially
Affected
by
the
Proposed
Rule
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
ES­
10
ES­
6
Estimated
Number
of
Small
Businesses
Potentially
Affected
by
the
Proposed
Rule
.
.
.
.
.
ES­
12
ES­
7
Housing
Supply
and
Demand
 
Historical
Data
and
Projections
for
2001­
­
2010
.
.
.
.
.
.
.
.
.
ES­
14
ES­
8
Summary
of
Regulatory
Options
Proposed
by
EPA
.
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ES­
15
ES­
9a
Weighted
Average
Change
in
Sales
Price
to
Buyer
.
.
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.
ES­
18
ES­
9b
Weighted
Average
Change
in
Builder­
Developer
Profit
.
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.
ES­
18
ES­
10
Impact
of
Compliance
Costs
on
Model
Firm
Financials
 
Zero
Percent
Cost
Pass
Through
.
.
.
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.
.
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.
ES­
20
ES­
11
Estimated
Facility
Closures
 
Zero
Percent
Cost
Pass
Through
.
.
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.
ES­
21
ES­
12
Estimated
Facility
Closures
 
Estimated
Cost
Pass
Through
.
.
.
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.
ES­
22
ES­
13
Barrier
to
Entry
Analysis
 
Zero
Percent
Cost
Pass
Through
.
.
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.
ES­
23
ES­
14
Estimated
National
Costs
of
ESC
Controls
.
.
.
.
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.
.
ES­
24
ES­
15a
Estimated
Number
of
Small
Business­
Owned
Establishments
with
Compliance
Costs
Exceeding
1
Percent
of
Revenues
.
.
.
.
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.
.
ES­
28
ES­
15b
Estimated
Number
of
Small
Business­
Owned
Establishments
with
Compliance
Costs
Exceeding
3
Percent
of
Revenues
.
.
.
.
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.
ES­
29
ES­
16
Environmental
Measures
.
.
.
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.
.
ES­
30
ES­
17
Point
Estimates
of
Benefits
by
Category
.
.
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.
ES­
31
ES­
18
Social
Costs
and
Benefits
of
Options
.
.
.
.
.
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.
.
.
ES­
33
1­
1
Industries
Potentially
Affected
by
Proposed
Rulemaking
.
.
.
.
.
.
.
.
.
.
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.
.
.
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.
.
.
.
.
.
.
1­
5
2­
1
Number
of
Establishments
in
Construction
and
Development
Industries,
1997
vs.
1992
.
.
.
.
.
2­
3
2­
2
Comparison
of
Major
Data
Sources
.
.
.
.
.
.
.
.
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.
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.
.
.
2­
4
2­
3
Industry
Definitions
for
Construction
and
Development
Industry
Profile
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
7
2­
4
Number
of
Establishments
in
the
Construction
and
Development
Industry,
Based
on
the
1997
Census
of
Construction
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
10
2­
5
Number
of
Small
Entities
with
Payrolls
in
the
Construction
and
Development
Industry,
Based
on
Employment
.
.
.
.
.
.
.
.
.
.
.
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.
.
.
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.
.
.
.
.
.
.
.
2­
12
2­
6
Number
of
Small
Establishments
in
the
Construction
and
Development
Industry,
Based
on
Value
of
Business
Done
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
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.
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.
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.
.
.
.
.
.
.
.
2­
12
2­
7
Number
of
Establishments
in
the
Construction
and
Development
Industry
with
Payroll,
by
Legal
Form
of
Organization
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
.
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.
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.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
14
2­
8
Number
of
Employees
in
the
Construction
and
Development
Industries,
Establishments
with
Payrolls
1997
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
.
.
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.
.
.
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.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
16
2­
9
Payroll
and
Benefits
for
Employees
in
the
Construction
Industry
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
19
2­
10
Specialization
within
NAICS
23321,
Categorized
by
Value
of
Construction
Work
.
.
.
.
.
.
.
.
2­
20
2­
11
Employer
Firms
and
Establishments
by
Employment
Size
of
Firm
by
NAICS
Codes
.
.
.
.
.
.
2­
22
2­
12
Employer
Firms
and
Establishments
by
Revenue
Size
Class
(
1997)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
24
ix
LIST
OF
TABLES
(
cont.
)

Table
Page
2­
13
Number
of
Firms
and
Establishments
Above
and
Below
SBA
Thresholds
for
Small
Business
Definition
Based
on
Data
from
SBA
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
25
2­
14
Number
of
Affected
Establishments
in
the
Construction
and
Development
Industry
.
.
.
.
.
.
.
2­
30
2­
15
New
Privately
Owned
Housing
Units
Authorized
by
Building
Permits
in
Permit­
Issuing
Places
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
35
2­
16
New
Privately
Owned
Housing
Units
Authorized
 
Valuation
for
Regions
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
37
2­
17
Estimated
Number
of
Nonresidential
Building
Permits
for
1997,
by
Region
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
39
2­
18
Highway
Statistics
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
41
2­
19
Highway
Capital
Outlay
by
Improvement
Type
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
44
2­
20
Selected
Statistics
for
Establishments
by
Single­
Family
Housing
Starts
Size
Class
.
.
.
.
.
.
.
.
2­
46
2­
21
Construction
Cost
Comparison
for
Low
Impact
Development
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
50
2­
22
Impact
of
Regulatory­
Driven
Delays
on
Housing
Affordability
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
53
2­
23
New
One­
Family
Houses
Sold
and
For
Sale
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
54
2­
24
Value
of
Construction
Work
by
Project
Ownership
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
58
2­
25
Value
and
Net
Value
of
Construction
Work
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
62
2­
26
Value
of
Construction
Work
by
Type
of
Construction
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
63
2­
27
Selected
Costs
in
the
Construction
Industry
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
66
2­
28
Additional
Selected
Costs
in
the
Construction
Industry
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
67
2­
29
Capital
Expenditures
in
the
Construction
Industry
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
69
2­
30
Total
Value
of
Inventories
for
Construction
Industry
Establishments
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
70
2­
31
Key
Business
Statistics
and
Ratios
of
the
Construction
Industry
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
73
2­
32
New
Privately
Owned
Housing
Units
Authorized
by
Building
Permit,
1981­
1999
.
.
.
.
.
.
.
.
.
2­
78
2­
33
Value
of
New
Privately
Owned
Housing
Units
Authorized
by
Building
Permits,
1991­
1999
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2­
79
2A­
1
Detailed
Number
of
Establishments
in
the
C&
D
Industry
with
Payroll
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2A­
1
2A­
2
Detailed
Number
of
Small
Establishments
in
the
C&
D
Industry
with
Payroll,
by
Employment
Size
Class
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2A­
3
2A­
3
Value
of
Construction
Work
by
Type
of
Construction
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2A­
4
2B­
1
Specialization
within
NAICS
23311
(
Land
subdivision
and
land
development)
,
Categorized
by
Value
of
Construction
Work
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2B­
1
2B­
2
Specialization
within
NACIS
23321
(
Single­
family
housing
construction)
,
Categorized
by
Value
of
Construction
Work
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2B­
3
2B­
3
Specialization
within
NAICS
23322
(
Multifamily
housing
construction)
,
Categorized
by
Value
of
Construction
Work
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2B­
5
2B­
4
Specialization
within
NAICS
23331
(
Manufacturing
and
industrial
building
construction)
,
Categorized
by
Value
of
Construction
Work
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2B­
7
2B­
5
Specialization
within
NAICS
23332
(
Commercial
and
institutional
building
construction)
,
Categorized
by
Value
of
Construction
Work
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2B­
9
2B­
6
Specialization
within
NAICS
23411
(
Highway
and
street
construction)
,
Categorized
by
Value
of
Construction
Work
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2B­
11
2B­
7
Specialization
within
NAICS
23412
(
Bridge
and
tunnel
construction)
,
Categorized
by
Value
of
Construction
Work
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2B­
13
2B­
8
Specialization
within
NAICS
23491
(
Water,
sewer,
and
pipeline
construction)
,
Categorized
by
Value
of
Construction
Work
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2B­
15
x
LIST
OF
TABLES
(
cont.
)

Table
Page
2B­
9
Specialization
within
NAICS
23492
(
Power
and
communication
transmission
lines
construction)
,
Categorized
by
Value
of
Construction
Work
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2B­
17
2B­
10
Specialization
within
NAICS
23493
(
Industrial
non­
building
structure
construction)
,
Categorized
by
Value
of
Construction
Work
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2B­
19
2B­
11
Specialization
within
NAICS
23499
(
All
other
heavy
construction)
,
Categorized
by
Value
of
Construction
Work
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2B­
21
2B­
12
Specialization
within
NAICS
23593
(
Excavation
contractors)
,
Categorized
by
Value
of
Construction
Work
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2B­
23
2B­
13
Specialization
within
NAICS
23494
(
Wrecking
and
demolition
contractors)
,
Categorized
by
Value
of
Construction
Work
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2B­
25
2D­
1
Summary
Statistics
for
the
C&
D
Industry
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2D­
1
3­
1
Summary
of
Regulatory
Options
Being
Co­
Proposed
by
EPA
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
3­
3
4­
1
Costs
Incurred
at
Various
Stages
of
a
Residential
Construction
Project
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4­
15
4­
2
Model
Parameters
and
Data
Sources
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4­
16
4­
3
Baseline
Economic
Model
of
a
Hypothetical
7.5­
Acre
Residential
Development
.
.
.
.
.
.
.
.
.
.
4­
20
4­
4
Illustrated
Impact
of
Incremental
Storm
Water
Control
Requirements
on
Model
Project
Under
Proposed
Rule
Option
1
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4­
21
4­
5
Obligation
of
Federal­
Aid
Highway
Funds
for
Selected
Highway
Improvements
and
Functional
Classifications
­
1995
to
2000
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4­
24
4­
6
Model
Single­
Family
Residential
Construction
Firm
Financial
Data
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4­
28
4­
7
Impact
of
Compliance
Costs
on
Developer­
Builder
 
s
Balance
Sheet
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4­
30
4­
8
Number
of
Establishments
in
the
Construction
and
Development
Industry
Adjusted
for
Regulatory
Option
Coverage
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4­
37
4­
9
Employment
in
the
Construction
and
Development
Industry
Adjusted
for
Regulatory
Option
Coverage
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4­
37
4­
10
Acres
Converted
from
Undeveloped
to
Developed
State,
1992­
1997
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4­
47
4­
11
New
Single­
Family
and
Multifamily
Housing
Units
Authorized,
1995­
1997
.
.
.
.
.
.
.
.
.
.
.
.
.
4­
48
4­
12
Average
and
Median
Lot
Size
for
New
Single­
Family
Housing
Units
Sold,
1995­
1997
.
.
.
.
.
4­
49
4­
13
Average
Building
Square
Footage
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4­
51
4­
14
Typical
Building
Sizes
and
Size
Ranges
by
Type
of
Building
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4­
52
4­
15
National
Estimates
of
Land
Area
Developed
Per
Year
Based
on
Building
Permit
Data
.
.
.
.
.
4­
53
4­
16
National
Estimates
of
Land
Area
Disturbed
Based
on
National
Resources
Inventory
Totals
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4­
54
4­
17
Distribution
of
Permits
by
Site
Size
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4­
56
4­
18
Estimates
of
Acreage
Affected
Under
Proposed
Rule
Option
2
.
.
.
.
.
.
.
.
.
.
.
.
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.
.
4­
57
4­
19
Change
in
Housing
Affordability
 
Sample
Calculation
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
4­
61
4­
20
Household
Information
for
Imputing
Changes
in
Ownership
Possibilities
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4­
62
4A­
1
Model
Project
Parameters
and
Data
Sources
.
.
.
.
.
.
.
.
.
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.
.
.
.
.
.
4A­
1
4C­
1
Model
Establishment
Characteristics
Based
on
Census
Data
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4C­
1
4C­
2
Model
Establishment
Characteristics
Based
on
Dun
and
Bradstreet
Data
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4C­
2
4C­
3
Financial
Ratio
Data
by
Quartile
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
.
.
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.
.
.
4C­
3
xi
LIST
OF
TABLES
(
cont.
)

Table
Page
5­
1
Baseline
Sales
Price
and
Profit
Conditions
for
the
Model
Projects
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
4
5­
2a
Impact
of
Regulatory
Options
on
Model
Project
Financials
 
100
Percent
Cost
Pass
Through,
All
Project
Sizes
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
6
5­
2b
Impact
of
Regulatory
Options
on
Model
Project
Financials
 
Zero
Percent
Cost
Pass
Through,
All
Project
Sizes
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
.
.
.
.
.
.
.
.
.
.
.
.
5­
6
5­
3a
Estimated
National
Costs
of
Storm
Water
Control
Options
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
8
5­
3b
Calculation
of
Total
Cost
per
Unit
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
9
5­
4
Impact
of
Regulatory
Options
on
Financial
Performance
for
Model
Firm
Single­
Family
Residential
Construction,
10­
24
Housing
Units
Starts
Class
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
12
5­
5a
Impact
of
Regulatory
Options
on
Model
Firm
Financial
Performance
 
Zero
Cost
Pass
Through
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
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.
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.
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.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
13
5­
5b
Impact
of
Regulatory
Options
on
Model
Firm
Financial
Performance
 
Estimated
Actual
Cost
Pass
Through
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
14
5­
6
Impact
of
Proposed
Rule
on
Model
Firm
Financials
 
Highway
Construction
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
16
5­
7a
Estimated
Facility
Closures
 
Zero
Percent
Cost
Pass
Through
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
17
5­
7b
Estimated
Facility
Closures
 
Estimated
Cost
Pass
Through
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
18
5­
8a
Estimated
Employment
Losses
 
Zero
Percent
Cost
Pass
Through
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
19
5­
8b
Estimated
Employment
Losses
 
Estimated
Cost
Pass
Through
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
19
5­
9a
Barrier
to
Entry
Analysis
 
Zero
Percent
Cost
Pass
Through
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
21
5­
9b
Barrier
to
Entry
Analysis
 
Estimated
Cost
Pass
Through
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
22
5­
10
Barrier
to
Entry
Analysis
 
Highway
Construction
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
23
5­
11
Impact
of
Erosion
and
Sediment
Control
Costs
on
Housing
Affordability
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
24
5­
12
Single­
Family
Residential
Average
HOI
by
Census
Division
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
25
5­
13
Single­
Family
Residential
Percentage
Change
in
HOI
by
Census
Division
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
25
5­
14
Single­
Family
Residential
Changes
in
Price
and
Quantity
from
Baseline
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
26
5­
15
Multifamily
Residential
Changes
in
Price
and
Quantity
from
Baseline
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
27
5­
16
Commercial
Changes
in
Price
and
Quantity
from
Baseline
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
28
5­
17
Industrial
Changes
in
Price
and
Quantity
from
Baseline
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
28
5­
18
Changes
in
Output
and
Total
Employment
from
Baseline
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
30
5­
19
Changes
in
Social
Welfare
Measures
 
All
Sectors
Combined
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
31
5­
20
Loss
of
Output
to
the
Construction
Industry
by
State
and
Use
Category
for
Option
2
.
.
.
.
.
.
5­
32
5­
21
Net
Change
in
Total
Employment
by
State
and
Use
Category
Under
Proposed
Rule
Option
2
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
34
5­
22
Costs
to
Establish
Construction
Programs
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5­
36
5A­
1
Estimated
Closures
as
a
Percent
of
Total
Establishments,
Cash
Flow
Method
(
Zero
Cost
Pass
Through)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5A­
1
5A­
2
Estimated
Closures
as
a
Percent
of
Total
Establishments,
Cash
Flow
Method
(
with
Cost
Pass
Through)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5A­
1
5A­
3
Estimated
Employment
Losses
as
a
Percent
of
Total
Employment,
Cash
Flow
Method
(
Zero
Cost
Pass
Through)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5A­
2
5A­
4
Estimated
Employment
Losses
as
a
Percent
of
Total
Employment
(
with
Cost
Pass
Through)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5A­
2
5B­
1
Sensitivity
Tests
with
Alternative
Elasticities
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5B­
2
5C­
1
Costs
of
Phase
II
Erosion
and
Sediment
Control,
by
Site
Size
(
$
1997)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5C­
3
xii
LIST
OF
TABLES
(
cont.
)

Table
Page
5C­
2
Estimated
National
Costs
of
Erosion
and
Sediment
Controls
 
Alternative
Baseline
.
.
.
.
.
.
.
5C­
4
5C­
3
Social
Costs
and
Benefits
of
Erosion
and
Sediment
Controls
 
Alternative
Baseline
.
.
.
.
.
.
.
5C­
4
5C­
4a
Impact
of
Combined
Phase
II
and
Proposed
Effluent
Guidelines
Costs
on
Model
Project
Financials
 
100
Percent
Cost
Pass
Through
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5C­
5
5C­
4b
Impact
of
Combined
Phase
II
and
Proposed
Effluent
Guidelines
Costs
on
Model
Project
Financials
 
Zero
Percent
Cost
Pass
Through
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5C­
5
5C­
5
Impact
of
Combined
Phase
II
and
Effluent
Guidelines
Costs
on
Model
Firm
Financials
 
Zero
Percent
Cost
Pass
Through
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5C­
7
5C­
6
Estimated
Facility
Closures
 
Zero
Cost
Pass
Through
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5C­
10
5C­
7
Estimated
Employment
Losses
 
Zero
Cost
Pass
Through
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5C­
11
5C­
8
Impact
of
Erosion
and
Sediment
Control
Costs
on
Housing
Affordability
 
Alternative
Baseline
(
No
Phase
II
Compliance)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5C­
12
5C­
9
Changes
in
Output
and
Total
Employment
from
the
Alternate
Baseline
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5C­
13
6­
1
SBA
Small
Business
Definitions
for
the
Construction
and
Development
Industry
.
.
.
.
.
.
.
.
.
.
6­
4
6­
2
Number
of
Affected
Establishments
in
the
Construction
and
Development
Industry
.
.
.
.
.
.
.
.
6­
6
6­
3
Ratio
of
Businesses
to
Establishments
by
Employment
Class
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6­
7
6­
4
Estimated
Number
of
Firms
by
Employment
Class,
and
Revenues
per
Establishment
.
.
.
.
.
.
.
6­
8
6­
5
Estimated
Number
of
Small
Businesses
Potentially
Affected
by
the
Proposed
Rule
.
.
.
.
.
.
.
6­
10
6­
6
Key
Model
Facility
Data
by
Housing
Starts
Classification
Category
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6­
19
6­
7a
Estimated
Number
of
Small
Business
Owned
Establishments
with
Compliance
Costs
Exceeding
1
Percent
of
Revenues
 
Zero
Cost
Pass
Through
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6­
27
6­
7b
Estimated
Number
of
Small
Business
Owned
Establishments
with
Compliance
Costs
Exceeding
3
Percent
of
Revenues
 
Zero
Cost
Pass
Through
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6­
28
6­
7c
Estimated
Number
of
Small
Business
Owned
Establishments
with
Compliance
Costs
Exceeding
1
Percent
of
Revenues
 
Estimated
Cost
Pass
Through
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6­
29
6­
7d
Estimated
Number
of
Small
Business
Owned
Establishments
with
Compliance
Costs
Exceeding
3
Percent
of
Revenues
 
Estimated
Cost
Pass
Through
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6­
30
7­
1
Environmental
Measures
from
the
Baseline
Environmental
Assessment
.
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.
7­
3
7­
2
Sample
Calculation
of
Avoided
Loss
of
Water
Storage
Capacity
.
.
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.
7­
5
7­
3
Sample
Calculation
of
Avoided
Navigational
Dredging
.
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.
7­
7
7­
4
Sample
Calculation
of
Avoided
Water
Treatment
Costs
.
.
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.
7­
9
8­
1
Total
Suspended
Sediment
(
TSS)
 
Differences
from
Baseline
.
.
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8­
2
8­
2
Benefits
Estimates
.
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.
8­
2
9­
1
Social
Costs
and
Benefits
.
.
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.
9­
5
10­
1
Impacts
of
Proposed
Rule
Compliance
Costs
on
Government
Units
.
.
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.
10­
4
xiii
LIST
OF
FIGURES
Figure
Page
ES­
1
Historical
Data
on
Housing
Construction
.
.
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.
ES­
13
2­
1
Number
of
Establishments
in
the
C&
D
Industries,
by
State
.
.
.
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.
2­
15
2­
2
Seasonal
Trends
for
Employment
in
the
C&
D
Industries
.
.
.
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.
2­
17
2­
3
New
Privately
Owned
Housing
Units
Authorized,
Seasonally
Adjusted
Annual
Rate
.
.
.
.
.
.
2­
34
4­
1
Pre­
and
Post­
Regulatory
Cumulative
Distribution
Function
for
Current
Ratio
.
.
.
.
.
.
.
.
.
.
.
4­
39
4­
2
Baseline
Distribution
Function
with
Bounds
for
Facility
Cashflow
.
.
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.
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.
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.
4­
43
6­
1
Baseline
Distribution
Functions
for
Facility
Revenues
.
.
.
.
.
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.
6­
23
xiv
