-------
TABLE 8-14. ESTIMATED ANNUAL EMPLOYMENT IN THE
ASPHALT ROOFING AND SIDING PRODUCTS INDUSTRY, 1969-1976
Asphalt felts
and coatina industry
Year
1969
1970
1971
1972
1973
1974
1975
1976
No. of all
empl oyees
13,800
14,200
14,400
15,600
16,700
17,300
16,600
18,900
No. of
production
workers
9,900
10,200
10,400
11,500
12,600
12,800
12,200
13,700
Asphalt roofing and
sidinq products industry
No. of all
employees
10,900
11,200
11,400
12,300a
13,200
13,700
13,100
14,900
. No. of
production
workers
8,600
8,800
9,000
9,700a
10,400
10,800
10,400
11,800
aThese data from the 1972 Census of Manufacturers show that
79 percent of all employees in the asphalt felts and coating
industry work in the asphalt roofing and siding products
industry and that 79 percent of the employees in the latter
industry are production workers. The data for the other years
were developed from these ratios.
8-36
-------
tar roofing and siding products industry. The asphalt felts and coating
industry is engaged in manufacturing roofing coatings and cements, in
addition to asphalt roofing and siding products.
Estimated data on employment in the asphalt roofing and siding
products industry are also included in Table 8-14. The data were
calculated by assuming that 79 percent of the employees in the asphalt
felts and coating industry were employed in the asphalt roofing and
siding industry. This percentage is based on historical data from the
Census of Manufacturers (1954, 1958, 1963, 1967, and 1972).10
Table 8-14 shows that employment in the asphalt roofing industry
increased from 10,900 employees in 1969 to 14,900 employees in 1976, and
the number of production workers increased from 8,600 in 1969 to ll',800
in 1976. Between 1969 and 1976 the industry employment increased by
37 percent.
8-1.1.5 Product Markets. The discussion of asphalt roofing product
markets which follows is divided into the following topics: (1) market
location, (2) product substitution, and (3) imports and exports.
8-1'1-5-1 Market locations. Most asphalt roofing products are sold
within 483 km (300 mi) of the production facility, so the location of
the markets would approximate the location of the production plants shown
in Figure 8-3. The market locations for specific products would approxi-
mate the regional shipments of products shown in Table 8-7. This table
shows that half of the individual shingles are sold in the North Central
region, and one-third are sold in the West; that 70 percent of strip
shingles are sold in the North Central region and the South; that
30 percent of smooth-surfaced roll roofing and cap sheet is sold in the
North Central region, 29 percent in the South, 21 percent in the West,
and 20 percent in the Northeast; and that 30 percent of mineral-surfaced
roll roofing and cap sheet is sold in the South, 29 percent in the North
Central region, 23 percent in the West, and 18 percent in the North-
east. '"
8'1-1-5-2 Product substitution. At present, asphalt roofing, products
provide^over 80 percent of the roofing products purchased in the United
States. Cedar shingles, slate, and tile have found limited application
in the roofing markets in recent years. The physical properties of
8-37
-------
asphalt roofing products make them durable and economical in the long
run. Recent price increases in asphalt roofing products have caused some
acceleration in the searches for substitutes by consumers and producers
of roofing products. In the commercial and industrial built-up roofing
market, there is some competition from various plastic materials which
are lighter and have shorter application times, but these products have
made no significant inroads into the residential market.
8.1.1.5.3 Imports and exports. The U.S. Department of Commerce
U.S. General Imports and U.S. General Exports publications for 1973 and
1977 do not report any imports or exports of asphalt roofing products or
roofing products of any type.18'19 We assume, therefore, that the U.S.
domestic market for asphalt roofing products is supplied entirely by
domestic manufacturers and that domestic manufacturers do not export
asphalt roofing products.
8.1.1.6 Product prices. The producer prices of asphalt roofing
products tripled between 1969 and 1978. This is reflected in Table 8-15
which shows that the producer price index (1967=100) for asphalt roofing
products rose from 102.8 in 1969 to 305.2 in December 1978 and shows that
the producer price of asphalt roofing strip shingle rose from $6.44/sq in
1969 to $16.69/sq in January 1978. More recent data on producers' prices
of standard asphalt shingle to a large southeastern building supply
company show that the price of this product rose from $12.67/sq in 1974
to $17.01/sq in February 1979, an increase of 34 percent over the 5-year
period as shown in Table 8-16.
Manufacturers' shipments of asphalt roofing products, as shown in
Table 8-17, rose from 84,430,000 sq to 93,759,000 sq, or 11 percent, and
saturated felt shipments fell from 834,532 Mg (920,000 tons) to 778,292 Mg
(858,000 tons), or 6.7 percent, from 1969 to 1976. At the same time, the
value of asphalt roofing product shipments rose from $406,800,000 to
$1,327,900,000, or 226 percent.
These dramatic price increases are attributable primarily to rising
material costs. Data from the 1976 Annual Survey of Manufacturers show
that 60 percent of the value of product shipments in the asphalt felts
and coatings industry is due to material costs, 15 percent is due to
salaries, wages, and benefits, and 25 percent is due to value added;
8-38
-------
Producer price index
for asphalt roofing
Year (1969=100)
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978 (Jan.)
1978 (Dec.)
102.8
102.7
125.5
131.2
135.5
196.0
225.9
238.1
253.0
277.4
305.2
Producer price of asphalt
roofing strip shingles
($ per square)
6.44
N/Aa
7.34
7.75
8.30
11.56
13.24
14.04
14.95
16.69
N/Aa
N/A = not available.
8-39
-------
TABLE 8-16. MANUFACTURERS' PRICES OF STANDARD ASPHALT
SHINGLES TO DISTRIBUTOR23
Year
1974
1975
1976
1977
1978
1/2/79
2/1/79
Price per square3
12.57
13.16
13.98
13.98
15.87
16.51
17.01
Precent increase
—
4.7
6.2
0.0
13.5
4.0
3.0
aA square is the amount of roofing material when applied
will cover 9.29 m2 (100 ft2) of surface.
8-40
-------
• 8"17' VALUES AND QUANTITIES OF PRODUCT SHIPMENTS IN THF
ASPHALT AND TAR ROOFING AND SIDING PRODUCTS INDUSTRY, 1969-1 ™I«fie
Year
1969
1970
1971
1972
1973
1974
1975
1976
Value
of product
shipments3
($ millions)
406.8
464.6
638.5
690.6
828.4
1,052.0
1,139.6
1,327.9
Quantities of shipments
Asphalt
roofing
(thousands
of squares)
84,430
83,180
93,246
97,163
102,861
94,852
95,828
93,759
Saturated felts
(.thousands
of Mg)
835
769
831
826
864
855
672
778
(thousands)
/of tons)
920
848
916
911
952
943
741
858
£? Pr°ducJ.shipments data also includes the value of siding
60 ofl souIJJS i W?Q7? al n0t ShOWn" S1dl"ng products amounted-to
Rv iS?fi ?h ™. J971 *nd were not reported in the following years.
By 1976, the quantity shipped is estimated to be 200,000 squares.
8-41
-------
approximately 75 to 80 percent of these product shipments are shipments
from the asphalt and tar roofing and siding industry, as shown in
Table 8-18. The relationship of the materials, labor and supervision,
and value added costs to the product value in the asphalt roofing industry
are about the same for both industries.
The price of asphalt rose dramatically in early 1974 when the price
of crude oil increased from $3.01/barrel in October 1973 to $11.65/barrel
in December 1973 as a result of the OPEC oil embargo and has continued to
increase steadily as the price of crude oil continues to rise.
Table 8-19 shows that from October 1974 until January 1979 the price
increase in saturant asphalt for the asphalt roofing industry was 41 percent.
The Government Accounting Office predicts a crude oil price of $16/barrel
by the end of 1979, and spot prices are ranging up to $28/barrel in
mid-1979.
Roofing felts have increased in price in the 1970's primarily from
price increases in wood pulp, wastepaper, other paper products, and
asphalt. Wood pulp and wastepaper product prices increased dramatically
in 1973 and 1974 as shown in Table 8-20, the same years asphalt roofing
showed dramatic price increases.
Granules, parting agents, and stabilizers for the surfacing of
roofing products accounted for about 16 percent of the total cost of
materials in 1979 and do not have an appreciable effect on the price of
asphalt roofing products. The average price of mineral products pur-
chased from several suppliers by a large roofing manufacturing plant in
March of 1979 was $44.10 to $47.40/Mg ($40 to $43/ton) for tab slate;
$25.36/Mg ($23/ton) for head lap; $17.64/Mg ^le/ton^for filler; $41.89/Mg
($38/ton) for talc; and $11.02/Mg ($10/ton) for sand.
8.1.2 Historical and Future Trends
Historical trends for the past 10 years and future trends for the
next 5 years are described for the following aspects of the asphalt
roofing industry: (1) annual changes in production, (2) industry expansion
through new plants and additions to existing plants, (3) geographic
concentration, (4) effects of imports and substitute products on growth,
(5) changes in plant sizes, and (6) production capacity utilization.
8-42
-------
TABLE 8-18. VALUE OF PRODUCT SHIPMENTS IN THE
ASPHALT ROOFING INDUSTRY, 1969-197616
Value of product shipments (m-?n-jnns nf rin-nnr->i
Year
1969
1970
1971
1972
1973
1974
1975
1976
hto this in<
°SIC 29523 •
»
Aspnait felts
and coatings
(SIC 2952)a
589.9
.626.4
825.9
902.2
1,058.5
1,357.0
1,462.8
1,699.7
Jus try by the U.S. C<
is the code for this
Asphalt and tar roofing
and siding products
(SIC 29523)°
406.8
464.6
638.5
690.6
828.4
1,052.0
1,139.6
1,327.9
snsus Bureau.
segment of the industry.
SIC 29523
percent of
SIC 2952
69 0
74 2
77 3
76 5
78 3
77 5
77 9
78.1
signed
8-43
-------
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fTTrm o AN° PERCENT INCREASES FOR SELECTED
PRODUCTS IN THE PULP, PAPER, AND ALLIED PRODUCTS INDUSTRY
— .-
Pulp, paper, and
Year
1970
1972
1973
1974
1975
1976
1977
1978
(Jan. )
allied
Index
108.2
113.4
122.1
151.7
170.4
179.4
186.4
189.6
jroducts
Percent
increase
—
4.8
7.7
24.2
12.3
5.3
3.9
1.7
Wood DU!D
Index
109.6
111.5
128.3
217.8
283.4
286.0
281.1
263.3
Percent
increase
__
1.7
15.1
69.8
30.1
0.9
1.7
6.3
Wastepaper
Percent
Index increase
125.0
133.6
197.4
265.5
110.2
184.9
187.2
201.7
6.8
47.8
34.4
58.5
67.8
1.2
7.7
8-45
-------
8.1.2.1 Annual Changes in Production and Product Mix. The total
production of the asphalt roofing and siding industry rose from
7,267,064 Mg (8,011,324 tons) in 1969 to 8,586,134 Mg (9,465,477 tons) in
1977, or 18.2 percent. In 1970, 1974, and 1975 the total production of
the industry decreased relative to the previous years while total production
increased in other years. Tables 8-21 and 8-21 a show the annual production
quantities and annual percentage changes in total production for the
industry from 1969 to 1977 in megagrams and tons, respectively.
Tables 8-21 and 8-21 a also show the annual percentage changes in
asphalt roofing products, asphalt and insulated siding, and saturated
felts. Asphalt roofing production increased from 6,381,989 Mg
(7,035,595 tons) in 1969 to 7,749,776 Mg (8,543,464 tons) in 1977, or an
increase of 21.4 percent; decreases in production were experienced in
1970, 1974, and 1975, while increases were experienced in 1971, 1972,
1973, 1976, and 1977. Asphalt and insulated siding production decreased
from 50,837 Mg (56,043 tons) in 1969 to 9,733 Mg (10,730 tons) in 1977,
or a decrease of 81 percent; decreases in production were experienced
every year except 1973. Saturated fel t product production showed a
slight decline from 834,248 Mg (919,687 tons) in 1969 to 826,625 Mg
(911,283 tons) in 1977, or a decrease of 0.8 percent; decreases in
production were experienced in 1970, 1972, 1974, and 1975, and increases
were experienced in 1971, 1973, 1976, and 1977.
The trend of the past 10 years in asphalt products is expected to
continue for the next 5 years. Annual production of all products will
probably show years of increases and decreases with a net increase of
about 4 to 8 percent over the 5-year period. . Asphalt roofing products
will continue to dominate the asphalt roofing and siding industry and
constitute about 90 percent of the production output of the industry as
they have for the past 10 years. Saturated felts will continue to
constitute about 10 percent of the production output and siding products
will remain at less than 0.5 percent of the production output.
Within the asphalt roofing product output sector, self-sealing strip
shingles will account for about 75 percent of output; roll roofing and
cap sheet will account for about 10 percent of output; and standard strip
shingles and individual shingles will each account for about 2.5 percent
8-46
-------
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of output. These ratios of output have been almost constant for the past
5 years (see Table 8-13) and are not expected to change to any extent
over the next 5 years.
8-1-2-2 Industry Expansion by New Plants and Additions to Existing
P1ants- Tne Annual Survey of Manufacturers and Census of Manufacturers
reported data on the total annual expenditures for new structures and
additions to plants and total annual expenditures for new machinery and
equipment for the asphalt felts and coatings industry as shown in Table
8-22. Approximately 75 percent of these expenditures were made by the
asphalt and tar roofing and siding industry as reported in the Census of
Manufacturers (1972, 1967, 1963, 1958, and 1954). In order to obtain
approximate annual expenditures by the asphalt roofing and siding industry
for the years 1969 to 1977, the expenditures of the asphalt coatings
industry were multiplied by 0.75. These data are also shown in Table 8-22.
The expenditures in Table 8-22 are based on current dollars for the
year reported and do not reflect comparable expenditures since price
inflation has not been considered. Table 8-23 reflects adjustments to
the estimated annual expenditures for new plants and equipment by the
asphalt roofing and siding industry to constant 1957-59 dollars by using
the Chemical Engineering (CE) plant cost indices for buildings and for
equipment, machinery, and supports. These figures show that annual
expenditures for new structures and additions to plants were less than
$4 million dollars each year (in 1957-1959 dollars) and that annual
expenditures for new machinery and equipment were less than $16 million
dollars (in 1957-59 dollars) for the industry which had about 100 plants
operating each year. An average of $56,000 (in 1957-1959 dollars) was
spent per operating plant in 1969 for new structures and equipment, and
this expenditure increased to $194,000 (in 1957-1959 dollars) in 1976.
Table 8-24 shows the end-of-year gross book value of depreciable
assets in the asphalt felts and coatings industry and the estimated
values for the asphalt and tar roofing and siding products industry. The
Census of Manufacturers showed that in the census years of 1954, 1958,
1963, 1967, and 1972 about 75 percent of the end-of-year gross book value
in the asphalt felts and coatings industry was attributed to the asphalt
roofing industry. The estimated values for asphalt roofing in Table 8-24
8-49
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were obtained by multiplying the values for felts and coatings by 0.75.10
Table 8-25 shows the estimated end-of-year gross book value of depreciable
assets in the asphalt roofing industry adjusted to 1957-59 dollars using
the CE plant cost indices for buildings and for equipment, machinery, and
supports.
The Annual Survey of Manufacturers data shown in Tables 8-24 and
8-25 include all fixed depreciable assets on the books of establishments
at the end of the year.16 The values shown (book value) represent the
actual cost of assets at the time they were acquired, including all costs
incurred^n making the assets usable (such as transportation and instal-
lation). Thus, the values shown in Tables 8-24 and 8-25 do not reflect
depreciation of the buildings and equipment as do usual book values. The
annual increase in end-of-year book value shown in Tables 8-24 and 8-25
indicate the increase in new plants and additions to existing plants and
indicate the increase in new machinery and equipment for new plants,
additional capacities at existing plants, and replacement equipment.'
Based on the historical data presented in this document, it is
assumed that the capacity of the asphalt roofing industry should increase
at a rate of about 2 percent a year for the next 5 years. At least half
of this increased capacity can be met by the expansion of existing
facilities. Several companies have indicated that they will increase the
productive capacity of their plants by adding a line to make roll roofing.
As a result, it is assumed that three new medium plants will be built in
the next 5 years. However, the increase in production may be achieved by
adding new lines to existing plants.
8-1.2.3 Geographic Concentration. Figure 8-3 shows the current
location of asphalt roofing production plants in the United States. It
was estimated previously that 95 of these 118 plants were in operation in
1967. An estimated 15 new plants built since 1967 have been located in
States which had one or more plants in the past. This estimate is based
upon reported shipments of products by States in the Census of
Manufacturers reports for 1967 and 1972.10
Table 8-12 shows that in 1970 the Northeast region accounted for
19 percent of total U.S. production of asphalt roofing and siding products;
the North Central region, 31 percent; the South region, 36 percent; and
8-53
-------
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the West region, 14 percent; and in 1977 the Northeast region had declined
to 18 percent of U.S. production; the North Central region had increased
to 32 percent; the South region had decreased to 34 percent; and the West
region had increased to 16 percent. Over the next 5 years the concen-
tration of production in the regions is not expected to change more than
3 percent either way in each region.
8'1-2-4 Effects of Imports and Substitute Products on Growth.
There are no reported imports of roofing products into the United States
arid there are no indications that imports will have any effect on the
U.S. asphalt roofing market growth over the next 5 years.18
The asphalt roofing industry currently has about an 80 percent share
of the roofing market in the United States and competes with cedar shingles,
tile, slate, and plastic products.17 Over the next 5 years the share of
the total roofing market that the asphalt roofing industry will maintain
will depend upon its price relative to other products, consumer preferences,
and new substitute product competition. The price of asphalt roofing
products has risen dramatically in the last 10 years; thus the incentive
to search for cheaper substitutes, such as plastics, has increased. It
is unlikely that an acceptable substitute for asphalt roofing will be
found over the next 5 years, but this possibility exists.
Dramatic increases in crude oil prices and, therefore, increases in
asphalt prices are a real possibility in the near term. If asphalt
prices continue to rise in relationship to the price of other materials,
such as cedar, a significant shift in consumer preferences for other '
products could occur. Predicting a shift in preference involves too many
unknowns to make a reasonable estimate of what may occur in the short
term. However, it is important to note that the asphalt roofing industry
could be adversely affected by any substantial price changes in petroleum
products.
8'1-2-5 Changes in Plant Sizes. The size of individual plants is
not reported by the asphalt roofing industry, government publications, or
any other known sources. Increases in production over the next 5 years
may be made by additions to existing plants, building new plants, or
increasing utilization of existing capacity. Since any or all of these
8-55
-------
possibilities may occur, it is impossible to predict how plant sizes
(unknown at present) will change in the next 5 years.
8.1.2.6 Production Capacity Utilization. The historical and current
total production capacity of the asphalt roofing industry and the
capacities of individual plants are not reported by the U.S. Census
Bureau in the Census of Manufacturers or in the Annual Survey of
Manufacturers. Based on information obtained from plant surveys and
supplied by plants, it is estimated that the newer asphalt roofing plant
lines operate at 70 percent of their design line speed of 3.048 m/s
(600 ft/min); and the typical plant operates two shifts per day, 5 days
per week, and 50 weeks per year. It has been estimated that the typical
plant would have a 20 percent down-time and a 9 percent average waste.
8.2 COST ANALYSIS OF REGULATORY ALTERNATIVES
In this section, the estimated capital investment costs, annualized
costs, and unit product costs to construct and operate new model asphalt
roofing plants are presented for small, medium, and large plants, both
with and without blowing stills, as previously defined in Chapter 6. The
estimated capital investment costs, annualized costs, and cost
effectiveness of pollution control systems for each new facility are
determined and compared for each regulatory alternative. Costs for
retrofitting the pollution control systems to modified/reconstructed
facilities that may make those changes identified in Chapter 5, and thus
qualify as possible modified or reconstructed sources subject to standards,
are not determined, since the likelihood that any existing facility will
make those changes is extremely remote.
Capital investment costs represent the total investment required to
construct new facilities and install pollution control systems and include
direct costs, indirect costs, contractor's fees, and contingency.
Annualized costs represent the variable, fixed, and overhead costs required
to operate the plants, and represent the fixed and variable costs required
to operate the pollution control systems. Unit product costs for each
plant are the annualized cost of the plant divided by the annual production.
Cost effectiveness is the annualized cost of each pollution control
system divided by the quantity of particulate pollutants collected annually.
8-56
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The cost analysis of the new model asphalt roofing plants and
pollution control systems for the five regulatory alternatives is divided
into three sections: (1) costs of new facilities without pollution
control; (2) costs of pollution control for the five regulatory alter-
natives; and (3) cost summary. All costs are given in November 1978
dollars.
8'2-] Costs of New Facilities Without Pollution Control
The capital investment costs, annualized costs, and unit product
costs for new model asphalt roofing plants are determined for small,
medium, and large plants, both with and without blow stills, as previously
defined in Chapter 6. The costs presented in this section are for new
facilities with no pollution control equipment and represent the costs
that are required to construct and operate each facility without regard
to the regulatory alternatives. Section 8.2.2 presents the costs of the
pollution control equipment under each regulatory alternative and those
costs must be added to the costs given in this section to determine the
total costs of a new facility. Total costs are presented in the cost
summary in Section 8.2.3.
8-2'1-1 Capital Investment Costs. The capital investment costs of
constructing new asphalt roofing facilities calculated in this analysis
are detailed estimates based upon a contractor's bid to construct a small
plant in October 1973.28 The method of estimating the capital investment
costs is commonly referred to as the detailed-item estimation method and
usually has an accuracy of about +5 percent. However, the costs are up-
dated using cost indices, and this introduces some error into current
cost estimates so that the accuracy of the estimates given is about
+10 percent.
The method used to estimate the cost of the small plant involved
using the contractor's October 1973 cost proposal and updating all the
costs to November 1978 dollars using the Chemical Engineering (CE) Plant
Cost indices and subcomponents are shown in Table 8-26.28 The costs of
the medium and large plants are estimated from the small plant costs
taking into account the additional equipment and building requirements of
these plants. The small plant has one roofing machine, the medium plant
8-57
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TABLE 8-26 CHEMICAL ENGINEERING PLANT COST INDICES AND
SUBCOMPONENTS FOR OCTOBER 1973 AND NOVEMBER 197829
Cost Indices
October
1973
November
1978
Ratio of 1978
to 1973 indices
Chemical engineering plant
cost index
Construction labor
Buildings
Engineering and supervision
Equipment, machinery,
and supports
Fabricated equipment
Process machinery
Pipe, valves, and fittings
Process instruments
Pumps and compressors
Electrical equipment
Structural support and
miscellaneous
146.7
161.7
150.9
130.7
143.5
143.7
139.6
153.9
148.1
140.8
105.3
141.5
224.7
190.3
217.8
165.4
247.6
244.1
235.8
278.1
221.7
266.6
173.5
258.0
1.53
1.18
1.44
1.27
1.73
1.70
1.69
1.81
1.50
1.89
1.65
1.82
8-58
-------
has two roofing machines, and the large plant has two roofing machines
and one saturated felt line.
Table 8-27 shows the estimated capital investment costs for each
plant, both with and without blowing stills, excluding pollution control
equipment. The cost for plants without blowing stills is $8,946,000 for
the small plant, $14,501,000 for the medium plant, and $16,953,000 for
the large plant; and the cost of plants with blowing stills is $9,110,000
for the, small plant, $14,831,000 for the medium plant, and $17,338,000
for the large plant. The capital investment costs for the blowing stills
are $160,000 for small plants, $320,000 for medium plants, and $370,000
for large plants. These costs include the purchase costs, indirect
costs, and the installed cost of the blowing still, preheater, pumps,
compressor, piping, and electrical equipment. All costs in Table 8-27
are determined from the information given in the contractor's October 1973
cost proposal.
A description of each capital investment cost item shown in Table 8-27
is given in Sections 8.2.1.1.1. to 8.2.1.1.4.
8-2-1.1.1 Direct cost items. Sitework includes rough grading;
roads on the plant property; paved parking in the loading dock and office
building areas; 213 m (700 ft) of railroad track; 366 m (1,200 ft) of
2.1-m (7-ft) high, aluminum-coated fence and two sliding gates; stone
grading; fill and compacting; excavation and backfill; drainage system;
and dewatering.
The manufacturing and warehouse building is constructed of pre-
fabricated, 26-gauge, prepainted metal roof and sidings on a 0.2-m (8-in.),
reinforced concrete floor in the manufacturing section and a 0.15 m
(6 in.) reinforced concrete floor in the warehouse section. The building
includes a high bay section over the roofing machine(s), machine room,
utility and electric room, warehouse, office, locker room, pump house,
and machine shop. Also included in the building cost are concrete '
foundations for the silo area and still yard; heating units for the
warehouse; steam unit heaters; air conditioning for office area; plumbing
fixtures; dock levelers; and partitions, light, heating, and air
conditioning for the office. The cost of land is excluded in this analysis.
8-59
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TABLE 8-27. ESTIMATED CAPITAL INVESTMENT COSTS OF NEW ASPHALT
ROOFING FACILITIES WITHOUT POLLUTION CONTROL EQUIPMENT
Capital cost
Capital investment item Small plant
Plants without blowina stills
Direct costs
Sitework
Buildings
Fired heaters
Heat exchangers
Process and storage tanks
Pumps and compressors
Fire protection system
Electrical equipment
Instruments and controls
Piping, ductwork, and insulation
Materials handling systems
Roofing machine(s)
Miscellaneous structural steel
Miscellaneous equipment
Total direct cost (D)
Indirect costs
Engineering and supervision
Construction overhead
Total indirect cost
Contractor's fee (~5% D)
Contingency (~5% D)
Working capital (-10% D)
Total investment cost
Plants with Blowing Stills
Investment cost without stills
Blowing stills
Increased working capital
Total investment cost
225,000
1,350,000
290,000
30,000
645,000
150,000
195,000
560,000
80,000
890,000
315,000
1,310,000
160,000
100,000
6,300,000
300,000
200,000
500,000
300,000
300,000
1,546,000
8,946,000
8,946,000
160,000
4,000
9,110,000
("November 1978
Medium plant
245,000
2,150,000
435,000
50,000
965,000
300,000
235,000
675,000
120,000
1,400,000
475,000
2,620,000
240,000
120,000
10,030,000
350,000
320-, 000
670,000
500,000
500,000
2,801,000
14,501,000
14,501,000
320,000
10,000
14,831,000
dollars)
Large plant
270,000
2,700,000
540,000
60,000
1,035,000
335,000
255,000
700,000
135,000
1,580,000
480,000
3,060,000
260,000
150,000
11,560,000
370,000
360,000
730,000
580,000
600,000
3,483,000
16,953,000
16,953,000
370,000
15,000
17,338,000
8-60
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8-2.1.1.2 Indirect cost items. Costs for construction design and
engineering, drafting, purchasing, accounting, cost engineering, and
travel are included in engineering and supervision of the plant
construction.
Items such as temporary construction facilities, tools, rentals,
travel, living expenses, taxes, and insurance are included in construction
overhead. This cost item is estimated at about 3 percent of the total
direct costs for each plant.
8-2.1.1.3 Contractor's fee. The contractor's fee will vary for
different contractors, and is estimated to be about 5 percent of the
total direct costs of each plant.
8.2.1.1.4 Contingency. The contingency factor is added to compensate
for work stoppages, weather problems, and other unpredictable events;
design changes during construction; underestimation errors; and expenses
not specifically listed which are likely to occur. In this analysis a
contingency factor of about 5 percent of the total direct costs for each
plant is added to the total capital investment cost.
8-2-l-2 Annualized Costs. The annualized costs for each model
plant will be the sum of variable costs, fixed costs, arid plant overhead.
The following list shows the operating cost items considered in this
study:
Variable costs
Raw materials
Operating labor
Supervision and clerical labor
Maintenance labor and materials
Operating supplies
Process utilities
Laboratory services
Payroll charges
The annualized cost (in November 1978 dollars) for plants with
blowing stills is $14,645,600 for small plants, $26,580,400 for medium
plants, and $34,221,400 for large plants. The annualized cost for plants
without blowing stills is $14,722,500 for small plants, $26,737,400 for
Fixed costs
Capital recovery
Taxes and insurance
General and administrative
Plant Overhead
8-61
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medium plants,"and $34,445,100 for large plants. These costs are shown
in Table 8-28 and are based on plants operating 16 hours/day, 250 days/year.
The inputs used to determine these costs are shown below.
8.2.1.2.1 Variable costs. Variable costs include raw materials,
operating labor, supervision and clerical labor, maintenance labor and
materials, operating supplies, process utilities, laboratory services,
and payroll charges.
Asphalt, dry felt, filler, talc, and granules are the basic raw
materials used in asphalt roofing plants. The quantities of each material
used annually by each model plant were previously given in Table 6-3, and
the prices (in November 1978 dollars), which were previously given in
section 8.1.5, are:
1.
2.
3.
4.
30
blown asphalt - $97/Mg ($88/ton);
asphalt flux - $92.60/Mg ($84/ton);
dry felt - $235.92/Mg ($214/ton);31
filler - $17.64/Mg ($16/ton);32
30
32
and
32
5. talc - $41.90/Mg ($38/ton);'
6. granules - $44.10/Mg ($40/ton).
Tables 8-29 and 8-29a show the annual quantities and costs of raw materials
used by each model plant.
A roofing shingle line or saturated felt line requires 14 operators
per shift for operations; materials handling requires three operators per
shift; warehousing requires three operators per shift; shipping and
receiving requires two operators per day; blowing stills require two
operators per shift; and miscellaneous operating labor requires two
operators per shift. Each plant operates two shifts per day. The small
plant operates the blowing still one shift, and the medium and large
plants operate the blowing stills two shifts. The saturated felt line at
the large plant is operated on only one shift.
The total operating labor required for each model plant without
blowing stills is: small plant, 46 people; medium plant, 74 people; and
large plant, 88 people. Total operating labor for plants with blowing
stills is: small plant, 48 people; medium plant, 78 people; and large
plant, 92 people.
8-62
-------
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8-65
-------
Wages for production workers in the paving and roofing materials
industry (SIC 295) in November 1978 were $6.86/h.33 At this wage rate,
the annual operating labor cost for each model plant is:
ANNUAL OPERATING LABOR HOURS AND COSTS (NOVEMBER 1978 DOLLARS)
Model plant size
Small
Medi urn
Large
Without blowing stills
Labor hours Cost ($)
92,000 631,100
148,000 1,015,300
176,000 1,207,400
With blowing stills
Labor hours Cost ($)
96,000 658,600
156,000 1,070,200
184,000 1,262,200
Each plant requires a plant manager and plant superintendent. The
small and medium plants require four foremen each, and the large plant
requires six foremen. The small plant requires five clerical workers,
the medium plant requires six, and the large plant requires seven.
The salaries of each person are assumed to be $40,000 for the plant
manager, $30,000 for the superintendent, $22,000 for the foremen, and
$12,000 for the clerical workers. At these salaries, the cost of super-
vision and clerical labor for each plant is: small plant, $218,000;
medium plant, $230,000; and large plant, $286,000.
An asphalt roofing plant requires constant maintenance and repair
operations. Four shifts of maintenance workers are used, and a small
plant requires 5 workers per shift, or 20 workers; a medium plant requires
6 workers per shift, or 24 workers; and a large plant requires 7 workers
per shift, or 28 workers.
The wage rate of maintenance workers is assumed to be 10 percent
more than the production workers, or $7.55/h. At this wage rate, the
annual maintenance labor cost for each model plant size is: small plant,
$302,000; medium plant, $362,400; and large plant, $422,800.
The materials required for annual maintenance and repairs are assumed
to be about 3 percent of the direct capital investment costs of each
plant, or $190,000 for the small plants, $300,000 for the medium plants,
and $370,000 for the large plants without blowing stills; and $195,000
for the small plants, $310,000 for the medium plants, and $380,000 for
the large plants with blowing stills.
8-66
-------
The total annual maintenance labor and material costs for each plant
are: small plant without blowing stills, $492,000; small plant with
blowing stills, $497,000; medium plant without blowing stills, $662,400;
medium plant with blowing stills, $672,400; large plant without blowing
stills, $792,800; and large plant with blowing stills, $802,800.
Miscellaneous operating supplies, such as charts, lubricants, small
tools, and similar items, which are neither raw materials nor maintenance
and repair materials, are required in the plant operation. The annual
cost of these supplies is estimated to be 10 percent of the maintenance
labor and materials cost, or about $49,200 and $49,700 for the small
plants, $66,200 and $67,200 for the medium plants, and $79,300 and $80,300
for the large plants, without and with blowing stills, respectively.
The process utilities, energy and water usage, of the model plants
with an electrostatic precipitator (ESP) on the saturator, afterburner
with heat recovery and cyclone on the blowing stills, and cyclones on the
materials handling operations were shown previously in Table 6-3. In
Tables 8-30 and 8-30a the annual utility requirements and annual cost of
water, natural gas, No. 2 fuel oil, and electricity are shown for each
plant size, both with and without blowing stills, for model plants with
no pollution control devices. The data in this table were derived by
subtracting the energy requirements for the baseline pollution control
equipment from the figures shown in Table 6-3. It was assumed that the
afterburners are fired with No. 2 fuel oil and the asphalt blowing still
preheaters are fired with natural gas.
No laboratory services are normally required at an asphalt roofing
plant. However, an allowance of $10,000 for small plants and $20,000 for
medium and large plants is made for contract laboratory services which
may be required periodically for quality control.
Payroll charges are assumed to be about 20 percent of the wages paid
to all employees, or about $235,700 for small plants with blowing stills;
$230,200 for small plants without blowing stills; $332,500 for medium
plants with blowing stills; $321,500 for medium plants without blowing
stills; $394,200 for large plants with blowing stills; and $383,200 for
plants without blowing stills.
8-67
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8.2.1.2.2 Fixed costs. Fixed costs include capital recovery of the
total capital investment cost, taxes, insurance, and general and adminis-
trative expenses.
Interest is assumed to be 10 percent annually, and the total capital
investment cost is recovered over a 10-year period. The capital recovery
factor (n=10, i=0.10) is 0.16275. Therefore, the annual capital recovery
costs are:
ANNUAL CAPITAL RECOVERY COST ($)
Small plant Medium plant Large plant
PI ant wi thout blowi ng sti11s 1,456,200 2,360,000 2,759,100
Plant with blowing stills 1,482,700 2,413,700 2,821,800
The annual cost of taxes and insurance is assumed to be 2 percent
of the total capital investment cost for each plant. This cost for
plants without blowing stills is $178,900 for small plants, $290,000 for
medium plants, and $339,100 for large plants; and for plants with blowing
stills is $182,200 for small plants, $296,600 for medium plants, and
$346,800 for large plants.
General and administrative expenses are assumed to be 2 percent of
the total capital investment cost for each plant and are equal to the
costs of taxes and insurance given above.
8.2.1.2.3 Plant overhead. Plant overhead is a charge to the costs
of the manufacturing facility which are not chargeable to any particular
operation. Overhead includes such cost items as medical services, general
engineering and contracting to others, plant utilities, plant guards,
janitors, cafeterias, administrative offices, accounting, and purchasing.
Overhead costs will vary from company to company and are usually calculated
as a percentage of direct labor cost or a percentage of installed capital
investment for the entire facility. Plant overhead is estimated to be
10 percent of the direct capital investment cost for each plant.
8.2.1.3 Unit Product Costs. Table 8-31 shows the annualized cost
of each plant, quantities of asphalt roofing shingles produced annually
by each plant, and the unit cost of the products. The small plants
produce 109,759 Mg (121,000 tons) of product annually, the medium plants
8-70
-------
TABLE 8-31. ANNUALIZED COSTS AND UNIT PRODUCT
COSTS OF NEW MODEL ASPHALT ROOFING PLANTS
WITHOUT POLLUTION CONTROL SYSTEMS
Plant
size and
description
Annualized
cost
$
Annual production Unit costs of
of roofing shingles roofing shingles*
Sales squares $/sales squares
Small
With blow stills
Without blow "stills
Medi urn
With blow stills
Without blow stills
Large
With blow stills
Without blow stills
14,645,600
14,722,500
27,580,400
27,737,400
34,221,400
34,445,100
1,030,000
1,030,000
2,060,000
2,060,000
2,640,000
2,640,000
14.22
14.29
13.38
13.46
12.96
13.05
November 1978 dollars.
8-71
-------
produce 219,518 Mg (242,000 tons) of product annually, and the large
plants produce 281,201 Mg (310,000 tons) of product annually. About
97 percent (on a weight basis) of the product manufactured by each plant
is assumed to be asphalt roofing strip shingles and 3 percent is saturated
felt. For the purpose of determining the unit product costs, all of the
production at each plant is assumed to be asphalt roofing strip shingles.
An asphalt roofing strip shingle sales square weighs 106.6 kg (235 Ib).
A small plant produces 1,030,000 sales squares per year; a medium plant
produces 2,060,000 sales squares per year; and a large plant produces
2,640,000 sales squares per year.38 The unit product costs for each
plant are determined by dividing the annualized cost by the annual
production of sales squares.
8.2.2 Costs of Pollution Control for the Five Regulatory Alternatives
The capital investment costs, annualized costs, and cost effective-
ness of particulate pollution control systems for the model asphalt
roofing plants are determined for six basic types of devices: electro-
static precipitators (ESP), high velocity air filers (HVAF), afterburners
with heat recovery (A/B W/HR), cyclones (CYC), mist eliminators (M/E),
and fabric filters (F/F). Capital investment costs include the purchase
cost of the basic control equipment and auxiliary equipment, the
installation cost, foundations and supports, ductwork, stacks, electrical,
piping, insulation, painting, pumps, contractor's fee, contingency, and
other indirect costs. Annual!zed costs are the sum of variable costs
(operating labor, supervision, maintenance labor, maintenance and repair
materials, process utilities, and payroll charges) and fixed costs (capital
recovery, taxes, insurance and general and administrative expenses).
Cost effectiveness is the annualized cost of the control system divided
by the quantity of pollutants collected annually by the system.
The discussion which follows is divided into the following sections:
(1) description of the pollution control systems for each regulatory
alternative, (2) description of the individual pollution control devices,
(3) annual particulate emissions from model asphalt roofing plants and
the control systems, (4) capital investment costs; (5) capital investment
cost comparisons, (6) annualized costs, (7) annualized operating cost
8-72
-------
comparisons, (8) cost effectiveness, and (9) cost effectiveness
comparisons.
8-2-2-1 Description of the Pollution Control Systems for Each
Regulatory Alternative. The pollution control systems required for each
regulatory alternative were discussed in Chapter 6 and shown in Tables 6-4
and 6-5 and in Figures 6-1 to 6-6. The information presented in those
tables and figures is used in this chapter to describe more specific
systems for each model plant and regulatory alternative. The costs of
the pollution control systems and the individual pollution control devices
presented in this chapter are based upon the descriptions given here.
Tables 8-32 and 8-32a show the pollution control systems and operating
characteristics for baseline model asphalt roofing plants, and Tables 8-33
and 8-33a show the pollution control systems and operating characteristics
for the model asphalt roofing plants for Regulatory Alternatives 2 through
5. Each model plant size (small, medium, and large) has two configurations:
Configuration 1 for plants with blowing stills and Configuration 2 for
plants without blowing stills. Five basic operations are considered at
each plant for each control system under each regulatory alternative as
follows: (1) saturator, wet looper, and coater, (2) filler surge bin and
storage, (3) parting agent bin and storage, (4) asphalt storage, and
(5) blowing stills. The saturator, wet looper, and coater operation may
be controlled by one ESP, one HVAF, or one A/B W/HR in small plants; two
ESP's, two HVAF's, or two A/B's W/HR in medium plants; and three ESP's,
three HVAF's, or three A/B's W/HR in large plants.
The filler surge bin and storage operation and the parting agent bin
and storage operation may each be controlled by either one cyclone or one
fabric filter, or each operation may be controlled by a separate control
device. The emissions from both the filler surge bin and storage operation
may be controlled by the same device, and the parting agent bin and
storage operation may be controlled by the same device. The asphalt
storage operation may be uncontrolled, controlled by the saturator control
device during plant operations, and controlled by a mist eliminator when
the plant is not operating. The blowing stills are controlled by one A/B
W/HR.
8-73
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The specific pollution control devices and their operating
characteristics shown in Tables 8-32 through 8-33a are discussed below
for each operation.
8.2.2.1.1 Saturator, wet looper, and coater operation. The ESP,
HVAF, or A/B W/HR in small plants operates at 4.93 Mm /s (10,450 scfra);
the control devices in medium plants operate at 5.07 Mm /s (10,750 scfm)
and 4.72 Nm3/s (10,000 scfm), respectively; and the three control devices
in large plants operate at 5.14 Nm3/s (10,900 scfm), 4.72 Nm3/s
(10,000 scfm), and 4.72 Nm3/s (10,000 scfm), respectively. Each ESP or
HVAF baseline control device has an inlet gas temperature of 93°C (200°F),
and each ESP or HVAF for Alternatives 2 through 5 has water sprays in the
fume duct to reduce the inlet gas temperature from 93°C (200°F) to 38°C
(100°F) to condense gaseous hydrocarbons. Each baseline (Alternative 1)
afterburner with heat recovery has an operating temperature of 482°C
(900°F), and each afterburner with heat recovery is operated at a higher
temperature of 760°C (1400°F) for Alternatives 2 through 5.
8.2.2.1.2 Filler surge bin and storage operation. Each plant has
cyclones for Alternatives 1, 2, and 3, and each plant has fabric filters
for Alternatives 4 and 5. These devices operate at 0.33 Nm /s (700 scfm)
and 0.71 Nm3/s (1,500 scfm) in small plants; and 0.66 Nm /s 1,400 scfm)
and 0.71 Nm3/s (1,500 scfm) in medium and large plants. For the cost
estimate, these have been combined to give devices with air flows of
1.04 Nm3/s (2,200 scfm) in small plants and 1.37 Nm /s (2,900 scfm) in
They all have inlet gas streams at ambient
medium and large plants.
temperatures.
8.2.2.1.3 Parting agent bin and storage operation. Each plant has
two cyclones for Alternatives 1, 2, and 3, and each plant has fabric
filters for Alternatives 4 and 5. Each of these devices operates at
0.33 Nm3/s (700 scfm) in small plants and at 0.33 Nm /s (700 scfm) and
0.66 Nm3/s (1,400 scfm) in medium and large plants. For the cost estimate,
O
these devices were combined to yield a 0.66 Nm /s (1,400 scfm) in small
plants and 0.99 Nm3/s (2,100 scfm) in medium and large plants. They all
have inlet gas streams at ambient temperatures.
8.2.2.1.4 Asphalt storage operation. The baseline (Alternative 1)
plants have no controls on the asphalt storage operation. Each plant has
8-78
-------
one mist eliminator on the asphalt storage operation for Alternatives 2
through 5. The small plants have a 0.21 Nm3/s (450 scfm) unit, the
medium have a 0.35 Nm3/s (750 scfm) unit, and the large plants have a
0.425 Nm /s (900 scfm) unit. All mist eliminators have inlet gas stream
temperatures of 54°C (130°F).
8-2-2-]-5 Blowing still operation. All plants with blowing stills
(Configuration 1) are controlled by an A/B W/HR. The afterburner operates
at 2.8 Nm /s (6,000 scfm) in small and medium plants and at 3.3 Nm3/s
(7,000 scfm) in large plants. Each A/B W/HR for Alternatives 1, 2, and 4
has an operating temperature of 482°C (900°F), and each A/B W/HR is
operated at a higher temperature of 760°C (1400°F) for Alternatives 3 and
5. The afterburner operates 2,084 h/yr in small plants, 3,888 h/yr in
medium plants, and 3,872 h/yr in large plants.
8-2-2.2 Description of the Individual Pollution Control Devices.
All of the individual particulate pollution control devices used by the
model asphalt roofing plants for the five regulatory alternatives were
described in Chapter 4. A brief description of each device is given
below. Supporting information and calculations are given in the
reference.
8.2.2.2.1 ESP. All ESP's are modular, low voltage, multiple-pass
units equipped with a fan, liquid pump and piping, and stack. Each unit
has an assumed drift velocity of 0.04 m/s (7 ft/min) and an assumed
pressure drop of 500 Pa (2 in. of H,,0) for the ductwork and ESP system.
8'2-2-2-2 ESP with cooling systems. All ESP's with cooling systems
are as previously described except that they now include a water pump, a
recirculating water storage tank, water sprays installed in the fume duct
to cool the fume, a sump for oil-water separation, and the associated
piping.
8.2.2.2.3 HVAF. The HVAF units previously described in Chapter 4
are equipped with a glass fiber mat filter, fans and motors, a 20-ft
stack, ductwork, and necessary controls. Each unit has an assumed pressure
drop of 6,200 Pa (25 in. of H£0) for the ductwork and filter system.40
The assumed power requirements for each unit are 95 kW (127 hp), 100 kW
(134 hp), 105 kW (141 hp), and 108 kW (144 hp), respectively.
8-79
-------
8.2.2.2.4 HVAF with cooling systems. All HVAF's with cooling
systems are the same as the HVAF's given above, with cooling systems
identical in size and water flow to those for ESP's of the same size.
The power requirements for the HVAF's with cooling systems are increased
because of the water pump and are assumed to be: 97 kW (130 hp) for the
4.72 Nm3/s (10,000 scfm) unit; 103 kW (138 hp) for the 4.93 Mm /s
(10,450 scfm) unit; 108 kW (144 hp) for the 5.07 Nm /s (10,750 scfm)
unit; and 111 kW (148 hp) for the 5.14 Nm3/s (10,900 scfm) unit.
8.2.2.2.5 Afterburner with heat recovery. All afterburners are
equipped with a counterflow shell and tube heat exchanger and are designed
to operate at an incinerator outlet temperature of up to 815°C (1500°F)
with a 0.3- to 0.5-second residence time. They are designed to operate
on No. 2 fuel oil at an efficiency of 98 percent, and the heat exchanger
recovers 50 percent of the heat. The pressure drop through the system is
2,000 Pa (8 in. of H20) for the ductwork, heat exchanger, and incinerator.
The units all have an incinerator, burners, stack, controls, fan, fan
motor, and necessary auxiliary equipment.40 Each of the two smaller
units has power requirements of 15 kW (20 hp) for the fan motor and fuel
pump; and each of the three larger units has power requirements of 22.4 kW
(30 hp) for the fan motor and fuel pump.
8.2.2.2.6 Cyclone. The cyclones are single-chamber units constructed
of 10-gauge carbon steel and have a support, hopper, scroll, fan, fan
motor, and ductwork as auxiliary equipment. The air flow through the
units is 18.3 m/s (3,600 ft/min) and the pressure drop is about 500 Pa
(2 in. of H?0).41 The power requirements for the fan motors are assumed
to be 1.5 kW (2 hp) for the small unit; 2.2 kW (3 hp) for the next three
units; and 15 kW (20 hp) for the two large units, respectively.
8.2.2.2.7 Mist eliminators. These units are fiber mist eliminators
consisting of a packed bed of fibers retained between two concentric
screens. Mist particles are collected on the fibers and become part of
the liquid film which wets the fibers. The collected liquid drains down
to the bottom of the unit and is recovered.42 The pressure drop through
each unit is about 2,500 Pa (10 in. of H20). The power requirements for
the fan motor for each unit are 2.2 kW (3 hp) and 3 kW (4 hp) for the
respective units.
8-80
-------
8-2-2-2.8 Fabric filters. The fabric filters are constructed of
carbon steel with dacron polyester bags. The collector has a pulse-jet
type cleaning mechanism and a screw conveyor system. The fan is located
at the outlet side of the unit so that the compartmented fabric filters
operate at negative pressure. The maximum air-to-cloth ratio is 5.0, and
the pressure drop is 2,500 Pa (10 in. of H20) through the system.42 The
power requirements for the fan motors are 3.7 kW (5 hp), 5.6 kW (7.5 hp),
5.6 kW (7.5 hp), and 7.5 kW (10 hp) for the respective units.
8-2-2.3 Annual Particulate Emissions From Model Asphalt Roofing
Plants and the Control Systems. This section is concerned with the
particulate emissions from five separate asphalt roofing plant operations:
(1) the saturator, wet looper, and coater; (2) filler surge bin and
storage silos; (3) parting agent bin and storage silos; (4) asphalt
storage tanks; and (5) blowing stills. The uncontrolled emissions,
emissions from installed control systems, and the quantities of parti -
culate pollutants collected from each operation for each plant size and
configuration for the five regulatory alternatives and for plants with no
controls are discussed in this section. First, the quantities of parti-
culates that would be emitted annually from model plants with no controls
are determined. Next, the quantities of particulates that would be
emitted annually from the various control devices and the efficiency of
the devices are discussed. Then the quantities of particulate pollutants
that are collected by each device and each system installed in each model
plant size, with and without blowing stills, are given for each regulatory
alternative. Finally, the efficiencies of the control devices are
discussed.
8-2.2.3.1 Uncontrolled emissions. The uncontrolled emissions from
each plant are derived from information contained in Chapter 3 and
Chapter 6. The particulate loading of the exhaust gases from the hoods
and ductwork on the filler surge bin and storage operations is calculated
from data in Table 6-4 that show that the uncontrolled operation emits
5.13 kg/h (11.3 Ib/h) at a small plant, which has an exhaust gas rate of
1.04 Mm /s (2,200 scfm), and the particulate loading from the parting
agent bin and storage operation is assumed to be the same as from the
filler operations. The particulate loading of the exhaust gases from the
8-81
-------
asphalt storage operation is calculated from data in Table 6-4 that the
uncontrolled operation emits 5.13 kg/h (11.3 Ib/h) at a small plant which
has an exhaust gas rate of 0.21 Nm3/s (450 scfm). The calculations are
shown below.
1. Filler and parting agent operations:
Particulate loading = (5.13 kg/h)(h/60 min )(min/1.04 Nm )
(1,000 g/kg) = 82.5 g/Nm3 (0.60 gr/scf)
2. Asphalt storage operations: ^
Particulate loading = (0.75 kg/h) (h/60 min)(min/0.21 Nm )
(1,000 g/kg) = 59.4 g/Nm3 (0.43 gr/scf)
Given the particulate loading, the annual uncontrolled emissions
from each operation for each plant size can be calculated. The annual
particulate emissions from the saturator and coater operation are taken
from the emissions test data and calculated to model plant sizes.
Table 8-34 shows the annual uncontrolled particulate emissions from
each operation for each size plant.
8.2.2.3.2 Emissions from baseline control systems. The quantities.
of particulates emitted from the control systems are taken in part from
Table 6-4, which shows:
1. the ESP, HVAF, and A/B on the saturator, wet looper, and coater
operation emit 16.67 kg/h (36.75 Ib/h);
2. the A/B W/HR operating at 482°C (900°F) on the blowing stills
emits 37.19 kg/h (82 Ib/h) during the saturant blow and 45.76 kg/h
(100.8 Ib/h) during the coating blow; and
3. the cyclones on the material handling systems emit 0.54 kg/h
(1.2 Ib/h).
All the control devices on the small plant operate 4,000 h/yr,
except the mist eliminator, which operates 4,800 h/yr, and the A/B W/HR
on the blowing stills, which operates 2,000 h/yr. The plant produces
109,759 Mg (121,000 tons) of product each year. The test data indicate
that the average control efficiency for all three control devices is
93.3 percent. Therefore, the emissions from the control devices can be
8-82
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calculated in a manner similar to those shown below for the ESP with heat
exchanger:
ESP with cooling system emissions = 65.89 (100-93.3) =
4.39 Mg/yr (4.84 tons/yr)
The annual control emissions calculated for each control device are
shown in Table 8-35, which also shows the annual uncontrolled emissions
for each operation and the amount of pollutants collected annually by
each control device.
8.2.2.3.3 Pollutants collected. The amount of pollutants collected
annually by each control device is shown in Table 8-35. The amount of
pollutant was determined by subtracting the quantity of control emissions
in Mg/yr (ton/yr) from the uncontrolled emissions in Mg/yr (ton/yr).
8.2.2.3.4 Control efficiencies. The control efficiencies for each
type of device used on each operation are shown in Table 8-36. The test
data showed that the average control efficiency for all three saturator
control devices was between 92 and 94 percent. Cyclones have an efficiency
of 80 percent, the fabric filters an assumed efficiency of 98.4 percent,
and the mist eliminator efficiency is assumed to be 98.0 percent. The
A/B W/HR system on the blowing stills has an efficiency of 77.7 percent
at an operating temperature of 482°C (900°F) and an efficiency of
93.9 percent at an operating temperature of 760°C (1400°F).
8.2.2.4 Capital Investment Costs. The capital investment costs of
the pollution control systems defined in the previous two sections are
given for each model plant in Tables 8-37 to 8-39. The costs given in
these tables include the cost of purchasing and installing the control
equipment, auxiliary equipment, foundations and supports, ductwork,
stacks, electrical systems, piping, insulation, painting, instrumentation,
indirect costs such as engineering and construction overhead, contractor's
fees, and contingencies. All costs are for new equipment installed at
the time the plant is built and are given in November 1978 dollars.
The capital investment costs estimated in this analysis are based
upon limited specifications for the equipment since no detailed specifi-
cations are available. All costs are derived from previous estimates
reported in the literature and have been updated for inflation using the
Chemical Engineering (CE) fabricated equipment cost index. Since the
8-84
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pollution control equipment is not defined by detailed specifications and
since the costs are adjusted for inflation with a broad index, the probable
accuracy of the estimated costs is +30 percent.
The total capital investment costs shown in the tables were derived
by determining the costs of individual control systems for each operation.
The methods and assumptions used to arrive at these costs are discussed
below.
8.2.2.4.1 ESP. The cost (in December 1975 dollars) of an uninstalled
ESP without auxiliary equipment can be estimated from the following
equation:
Purchase cost = $75,000 + $27.56 (net plate area, m2), or
Purchase cost = $75,000 + $2.56 (net plate area, ft2).41
The cost of auxiliary equipment, including fans, damper, ductwork, fan
motor, and miscellaneous items, adds about 20 percent to the basic ESP
cost. ' Installation costs vary between 50 percent and 150 percent of
the basic ESP and auxiliary equipment cost; in this analysis an instal-
lation cost of 75 percent is assumed.40'41
The cost of the ESP system must be adjusted from December 1975
dollars to November 1978 dollars. This is done by using the CE fabri-
cated equipment cost index, which rose from 196.4 in December 1975 to
244.1 in November 1978.41'43
The installed capital equipment cost (C) for each ESP system (in
November 1978 dollars rounded to the nearest $1,000) is:
1. 4.72 Nm3/s (10,000 scfm) ESP system:
C = [$75,000+($2.56)(8,200)](1.2)(1.75)(244.1/196.4) = $251,000
2. 4.93 Nm3/s (10,450 scfm) ESP system:
C = [$75,000+($2.56)(8,500)](1.2)(1.75)(244.1/196.4) = $253,000
3. 5.07 Nm3/s (10,750 scfm) ESP system:
C = [$75,000+($2.56)(8,800)](1.2)(1,75)(244.1/196.4) = $255,000
4. 5.14 Nm3/s (10,900 scfm) ESP system:
C = [$75,000+($2.56)(9,000)](1.2)O.75)(244.1/196.4) = $256,000
8.2.2.4.2 ESP with cooling systems. The cost of an ESP with a
cooling system increases the above ESP system costs by the cost of the
cooling system. The installed cost of a cooling system, including the
purchase cost, handling and setting, steel, concrete, electrical, piping,
8-91
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paint, insulation, and indirect costs, was obtained from suppliers of
this equipment. The updated costs (rounded to the nearest $1,000) for
40 43 44
cooling systems (HE) for each unit are: ' '
1. 4.72 Nm3/s (10,000 scfm) ESP system:
Cooling system installed cost = $20,300
2. 4.93 Nm3/s (10,450 scfm) ESP system:
Cooling system installed cost = $21,200
3. 5.07 Nm3/s (10,750 scfm) ESP system:
4.
Cooling system installed cost = $21,800
5.14 Nm3/s (10,900 scfm) ESP system:
Cooling system installed cost = $22,000
The total installed capital investment cost for ESP's with cooling
systems is $271,300, $274,200, $276,800 and $278,000 for the respective
systems.
8.2.2.4.3 HVAF. The installed cost of an HVAF system, including
the purchase cost of the HVAF and auxiliary equipment, installation,
engineering, foundations, ductwork, stack, electrical, insulation, painting,
piping, and indirect costs, is taken from Air Pollution Control Technology
and Costs: Seven Selected Emission Sources. The approximate cost (in
1974 dollars) of the HVAF systems is $45,500/Nm3/s ($15/scfm) for systems
in the size range of 4.72 to 5.04 Nm3/s (10,000 to 10,900 scfm).
The 1974 cost is adjusted to November 1978 dollars with the CE
fabricated equipment cost index, which rose from 170.1 in 1974 to 244.1
in November 1978.41'43 Thus, the capital investment cost (C) of the HVAF
systems (rounded to the nearest $1,000) is:
1. 4.72 Nm3/s (10,000 scfm) HVAF system:
C = ($15)(10,000)(244.1/170.1) = $215,000
2. 4.93 Nm3/s (10,450 scfm) HVAF system:
C = ($15)(10,450)(244.1/170.1) = $225,000
3. 5.07 Nm3/s (10,750 scfm) HVAF system:
C = ($15)(10,750)(244.1/170.1) = $231,000
4. 5.14 Nm3/s (10,900 scfm) HVAF system:
C = ($15)(10,900)(244.1/170.1) = $235,000
8.2:2.4.4 HVAF with cooling system. The cost of an HVAF with a
direct water spray cooling system increases the HVAF system costs shown
8-92
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above by the cost of the cooling system, and their costs are identical to
those used on the ESP's. The capital investment cost (C) of each HVAF
with cooling system (rounded to the nearest $1,000) is:
1. 4.72 Mm /s (10,000 scfm) HVAF with cooling system:
C = $215,000 + $20,300 =$235,300
2. 4.93 Nm3/s (10,450 scfm) HVAF with cooling system:
C = $225,000 + $21,200 = $246,200
3. 5.07 Nm3/s (10,750 scfm) HVAF with cooling system:
C = $231,000 + $21,800 = $252,800
4. 5.14 Nm3/s (10,900 scfm) HVAF with cooling system:
C = $235,000 + $22,000 = $257,000
8-2.2.4.5 Afterburner with heat recovery. The cost of an A/B W/HR
is taken from Air Pollution Control Technology and Costs: Seven Selected
Emission Sources and Capital and Operating Costs of Selected Air Pollution
Control Systems. ' The capital investment costs of the A/B W/HR and
auxiliary equipment is about $17,000/Nm3/s ($8/scfm) in 1974 dollars.40
Installation, ductwork, piping, electrical, insulation, painting, supports,
foundation, stack, and indirect costs range between 25 percent and
100 percent of the basic equipment cost and are assumed to be 75 percent
in this analysis.41
The cost of the A/B W/HR system must be adjusted from 1974 dollars
to November 1978 dollars. This is done by using the CE fabricated equipment
cost index, which rose from 170.1 in 1974 to 244.1 in November 1978.41'43
The installed capital cost (C) of each A/B W/HR system (in Novem-
ber 1978 dollars rounded to the nearest $1,000) is:
1. 2.83 Nm3/s (6,000 scfm) A/B W/HR:
C = ($8)(6,000)(1.75)(244.1/170.1) = $121,000
2. 3.30 Nm3/s (7,000 scfm) A/B W/HR:
C = ($8)(7,000)(1.75)(244.1/170.1) = $141,000
3. 4.72 Nm3/s (10,000 scfm) A/B W/HR:
C = ($8)(10,000)(1.75)(244.1/170.1) = $201,000
4. 4.93 Nm3/s (10,450 scfm) A/B W/HR:
5.
C =. ($8)(10,450)(1.75)(244.1/170.1) = $210,000
5.07 Nm3/s (10,750 scfm) A/B W/HR:
C = ($8)(10,750)(1.75X244.1/170.1) = $216,000
8-93
-------
6. 5.14 Nm3/s (10,900 scfm) A/B W/HR:
C = ($8)(10,900)(1.75)(244.1/170.1) = $218,000
8.2.2.4.6 Cyclones. The capital investment cost of cyclones is
taken from Capital and Operating Costs of Pollution Control Equipment
Modules - Vol. II - Data Manual and Capital and Operating Costs of Selected
Air Pollution Control System!?1'44 The 1972 installed capital investment
cost of each system, including purchase cost of cyclone and auxiliary
equipment, installation, ductwork, piping, supports, instrumentation,
electrical, insulation, paint, and indirect costs, is: $4,800 for the
0.66 Nm3/s (1,400 scfm) system; $7,000 for the 0.99 Mm /s (2,100 scfm)
system; $7,200 for the 1.04 Nm3/s (2,200 scfm) system; and $9,600 for the
1.37 Nm3/s (2,900 scfm) system.44 These costs (adjusted for inflation)
aqree with those given in Capital and Operating Costs of Selected Air
41
Pollution Control Systems.
The capital investment cost (C) of each system (rounded to the
nearest $100) adjusted from 1972 dollars to November 1978 dollars with
the CE fabricated equipment cost index is:
1. 0.66 Nm3/s (1,400 scfm) cyclone:
C = ($4,800)(244.1/136.3) = $8,600
2. 0.99 Nm3/s (2,100 scfm) cyclone:
C = ($7,000)(1.79) = $12,500
3. 1.04 Nm3/s (2,200 scfm) cyclone:
C = ($7,200X1.79) = $12,900
4. 1.37 Nm3/s (2,900 scfm) cyclone:
C = ($9,600X1.79) = $17,200
8.2.2.4.7 Mist eliminators. The capital investment cost of mist
eliminators is taken from a 1977 EPA report.45 The estimated capital
investment cost for each system, in May 1977 dollars, is: $17,100 for
the 0.21 Nm3/s (450 scfm) system; $25,500 for the 0.35 Nm /s (750 scfm)
system; and $30,600 for the 0.425 Nm3/s (900 scfm) system.
These capital investment costs are adjusted using the CE fabricated
equipment cost index, which rose from 211.9 in May 1977 to 244.1 in
43 46
November 1978, or about 15.2 percent.
8-94
-------
The capital investment cost (C) of the mist eliminator system is:
1. 0.21 Nm3/s (450 scfm) M/E:
C = ($17,100X1.152) = $19,700
2. 0.35 Nm3/s (750 scfm) M/E:
C = ($25,500)(.1.152) = $29,400
3. 0.425 Nm3/s (900 scfm) M/E:
C = ($30,600)(1.152) = $35,300
8-2-2.4.8 Fabric filters. The capital investment cost of fabric
filter systems is taken from Non-metallic Minerals Industries Control
Equipment Costs. The capital investment cost of fabric filter systems
(in December 1976 dollars) including the collector, auxiliaries, instal-
lation, foundation, stack, piping, ductwork, insulation, painting,
electrical, and indirect costs is: $20,000 for the 0.66 Nm3/s (1,400 scfm)
system;3$23,800 for the 0.99 Nm3/s (2,100 scfm) system; $24,300 for the
1.04 Nm /s (2,200 scfm) system; and $27,300 for the 1.37 Nm3/s (2,900 scfm)
system.
The costs are adjusted from December 1976 dollars to November 1978
dollars with the CE fabricated equipment cost index, which rose from
208.3 in December 1976 to 244.1 in November 1978, or about
17.2 percent. ' The November 1978 capital investment cost (C) of each
fabric filter system (rounded to the nearest $100) is:
1. 0.66 Nm3/s (1,400 scfm) fabric filter:
C = ($20,000)(1.172) = $23,400
2. 0.99 Nm3/s (2,100 scfm) fabric filter:
C = ($23,800X1.172) = $27,900
3. 1.04 Nm3/s (2,200 scfm) fabric filter:
C = ($24,300X1.172) = $28,500
4. 1.37 Nm3/s (2,900 scfm) fabric filter:
C = ($27,300X1.172) = $32,000
8-2-2.5 Capital cost increase from baseline. The capital cost
increase from the baseline for control systems for Alternatives 2 to 5 at
a given plant, with or without blowing stills, is given in Table 8-40.
For a small plant with an ESP or HVAF, the capital cost increase of the
pollution control system is $40,900 for Alternatives 2 and 3 and $71,300
for Alternatives 4 and 5; for a medium plant, the capital cost increase
8-95
-------
TABLE 8-40. CAPITAL COST INCREASE FROM BASELINE
FOR POLLUTION CONTROL SYSTEMS
Plant
size
Small
Medium
Large
Saturator
control device
ESPa or HVAFb
A/B W/HRC
ESP or HVAF
A/B W/HR
ESP or HVAF
A/B W/HR
Regulatory
alternatives
2 and 3
40,900
19,700
71,500
29,400
97,900
35,300
Regulatory
alternatives
4 and 5
7,1,300
50,100
101,700
59,600
128,100
65,500
aESP = electrostatic precipitator with cooling system.
bHVAF = high velocity air filter with cooling system.
CA/B W/HR = afterburner with heat recovery.
8-96
-------
is $71,500 for Alternatives 2 and 3 and $101,700 for Alternatives 4 and
5; and for a large plant, the capital cost increase is $97,900 for
Alternatives 2 and 3 and $128,100 for Alternatives 4 and 5. When an
A/B W/HR is used to control the saturator, wet looper, and coater, the
capital cost increase for a smal-1 plant is $19,700 for Alternatives 2 and
3 and $50,100 for Alternatives 4 and 5; for a medium plant, the capital
cost increase is $29,400 for Alternatives 2 and 3 and $59,600 for
Alternatives 4 and 5; for a large plant, the increase is $35,300 for
Alternatives 2 and 3 and $65,500 for Alternatives 4 and 5.
8'2'2-6 Annualized Cost. The annualized costs for the pollution
control systems are the sum of variable costs and fixed costs. Variable
costs include operating labor, supervision, maintenance labor, payroll
charges, maintenance and repair materials, and process utilities. Fixed
costs include capital recovery, taxes, insurance, and general and
administrative expenses.
Table 8-41 shows the total annualized cost for each pollution control
system for each plant size and configuration for the five regulatory
alternatives.
The inputs used to determine the annual ized cost of the control
systems are discussed below.
8'2-2-6-1 Variable costs. The variable costs include labor and
supervision, maintenance and repair materials, and process utilities.
Each pollution control device requires an operator to periodically
check the instruments, controls, and the unit for proper operation, and
requires maintenance labor to maintain and service the equipment. The
increase from baseline in the amount of time required to operate and
maintain the control devices and the associated labor and supervision
costs are shown in Table 8-42.
The amount of operating labor required for each device is based on
the assumptions that the ESP, HVAF, cyclone, mist eliminator, and fabric
filter require 0.5 hour of operating labor per day (0.25 h/shift), and
that the afterburner with heat recovery system requires 2 hours of
operating labor per day (1 h/shift). The amount of maintenance labor
required for each device is based on the assumptions that the ESP, HVAF,
afterburner with heat recovery, mist eliminator, fabric filter, and heat
8-97
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exchanger systems require 4 hours maintenance per week, and the cyclones
require 2 hours .maintenance per week. These assumptions .are based on
information given in Air Pollution Control Technology and Costs: Seven
40
Selected Emission Sources.
The costs shown in Table 8-42 are based on operating labor wages of
$6.86/h and maintenance labor wages of $7.50/h.33 Supervision costs are
10 percent of operating labor, and payroll charges are 20 percent of the
sum of operating labor, supervision, and maintenance labor wages.
The annual cost of maintenance and repair materials, operating
supplies, and replacement parts is estimated to be 3 percent of the total
capital investment cost of the ESP, HVAF, and afterburner with heat
recovery systems and 5 percent of the cyclone, mist eliminator, and
40 44
fabric filter systems. '
Tables 8-43 and 8-43a show the annual process utility requirements
and utility costs for each pollution control device used in the model
asphalt roofing plants. The utility requirements are calculated from the
information given in Section 8.2.2.2 for each device. The annual utility
costs are based on a cost of $0.106/m3 ($0.30/100 ft ) for water;
$137.40/m3 ($0.52/gal) for No. 2 fuel oil; and $11.39/gigajoules*
($0.041/kWh) for electricity.
The fuel requirements for the afterburners with heat recovery are
not reduced for the heating value of the hydrocarbons in the gas stream.
This is considered a recovery credit and is discussed in Section 8.2.2.6.3.
8.2.2.6.2 Fixed costs. Fixed costs include capital recovery,
taxes,'insurance, and general and administrative cost for each system.
The total capital investment cost of each system is recovered over
its depreciable life, which is assumed to be 20 years for each control
device. (This assumption is generally valid for all devices except the
afterburner with heat recovery, which has a life of about 10 years. To
simplify calculations, a 20-year life is assumed for all the devices.)
Interest is assumed to be 10 percent. Therefore, the capital recovery
^Gigajoule is a billion joules.
8-100
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factor (n=20, 1=10) is 0.11746.41 This factor, multiplied by the capital
investment cost for each pollution control device, gives the capital
recovery cost.
The annual cost of taxes and insurance is assumed to be 2 percent of
the total capital investment cost for each control device. General and
administrative costs also are assumed to be 2 percent of the total capital
investment cost.
The annualized cost for each control device is shown in Table 8-44.
These costs are used to determine the annualized cost for each plant
shown previously in Table 8-41.
8-2.2.6.3 Recovery credits. The materials collected by the ESP,
•ESP with heat exchanger, HVAF, HVAF with heat exchanger, and the mist
eliminator on the asphalt storage tanks are liquid hydrocarbons. The
afterburners with heat recovery on the saturator operation incinerate
liquid hydrocarbons. The cyclones and fabric filters collect filler and
parting agent for recycle. The afterburner with heat recovery operating
at 760°C (1400°F) on the blowing still incinerates liquid hydrocarbons.
It is assumed that all of the liquid hydrocarbons collected have the same
dollar and heat value as No. 6 fuel oil which costs about $79.30/m3
($0.30/gal) in November 1978 dollars and has a heating value of
41.8 gigajoules/m3 (150,000 Btu/gal).49'50 The filler has a value of
$17.64/Mg ($16/ton) and the parting agent has a value of $41.90/Mg ($38/ton).
The liquid hydrocarbons burned in the afterburner with heat recovery
systems have an assumed heating value of 3.96 gigajoules/m3
(142,000 Btu/gal), which is the heating value of No. 2 fuel oil. The
dollar value of No. 2 fuel oil is $137.40/m3 ($0.52/gal). The dollar
value of^ No. 2 and No. 6 fuel oil is based on a specific gravity of
903 kg/m (7.54 Ib/gal) for No. 2 fuel oil and 960 kg/m3 (8.0 Ib/gal) for
No. 6 fuel oil. The heat recovery system is used to generate steam or
to preheat asphalt. The heat released in burning the liquid hydrocarbon
replaces an equivalent quantity of heat from burning No. 2 fuel oil. The
particulates from the saturator are assumed to be 100 percent combustible,
and those from the blowing still cyclone are assumed to be 50 percent
combustible.
8-103
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8-104
-------
Recovery credits are not considered in any of the annualized costs
reported in this document because there are not enough data on the amount
of product that is being recovered.
8'2'2-7 Annualized Cost Comparisons. The annualized costs of the
baseline (Regulatory Alternative 1) pollution control systems are lower
than those of the other four regulatory alternatives. The annualized
costs for Alternatives 2 to 5 increase by the annualized cost of the
cooling systems on the ESP and HEAP and by the cost of the additional
fuel required to operate the A/B W/HR at a higher temperature on the
saturator, wet looper, and coater operation; and increase by!the annualized
cost of the mist eliminator on the asphalt storage tanks. Alternatives 3
and 5 incur an increase in cost for the net fuel required to raise the
operating temperature of the A/B W/HR from 482°C (900°F) to 760°C (1400°F).
Alternatives 4 and 5 incur an additional annualized cost for using fabric
filters on the material handling systems instead of cyclones, since the
annualized cost of fabric filters is greater than the cyclones.
Table 8-45 shows the increase in the annualized costs of the pollution
control systems for each plant size and configuration for Alternatives 2
to 5 as compared to the baseline pollution control systems and shows the
percentage increase in annualized costs compared to the baseline annualized
costs without recovery credits. The increase in annualized costs is
least for Alternative 3 followed by Alternatives 2, 5, and 4 (in that
order) for plants with blowing stills and is less for Alternatives 2 and
3 than for Alternatives 4 and 5 for plants without blowing stills.
Comparison of the three alternative control devices on the baseline
saturator, wet looper, and coater operation in Table 8-42 shows that the
ESP is the least expensive to operate, followed by the HVAF and A/B W/HR.
The ESP costs $6,700 less to operate than the HVAF and $72,400 less to
operate than the A/B W/HR at small plants; costs $12,700 and $142,800
less than the respective devices at medium plants; and costs $18,800 and
$212,600 less than the respective devices at large plants. Comparing the
three alternative devices on the saturator, wet looper, and coater
operation for Alternatives 2 to 5 shows that the ESP with cooling system
costs $6,900 less to operate than the HVAF with cooling system and
$108,000 less to operate than the A/B W/HR at the small plants; costs
8-105
-------
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$12,800 and $213,800 less than the respective devices at medium plants-
and costs $18,300 and $317,600 less than the respective devices at large
plants.
Comparison of the two alternative devices on the materials handling
operations shows that the cyclones are less expensive to operate than the
fabric filters. The annualized cost differences between the two types of
devices are $9,000 at small plants and $9,400 at medium and large plants
These cost differences account for the cost differences between
Alternatives 2 and 4 and for the cost differences between Alternatives 3
and 5.
Comparison of the annualized costs of the A/B W/HR on the blowing
stUls at the two operating temperatures shows that the higher temperature
760°C (1400°F) operation costs more than the lower temperature 482°C
(900°F) operation. The annual cost difference is $13,100 at the small
and medium plants and $20,600 at the large plants. These cost differences
account for the cost differences between Alternatives 2 and 3 and between
Alternatives 4 and 5.
8'2'2-8 Cost Effectiveness. The cost effectiveness of a device or
system is simply the annualized cost of the device or system divided by
the amount of pollutants collected in megagrams (tons) per year The
lower the cost effectiveness in dollars per megagram (dollars per ton)
the more cost effective is the device or system.
Table 8-46 shows the cost effectiveness of each individual pollution
control device considered in this analysis. Table 8-47 shows the cost
effectiveness from baseline of each control system for each plant size
and configuration for Regulatory Alternatives 3 and 5. The cost effective-
ness of individual control devices and control systems used on the model
asphalt roofing plants are compared in the following two sections.
8'2-2-8-1 Cost effectiveness comparisons of individual control
devices. An examination of Table 8-46 shows that the cost effectiveness
of the devices used on the saturator, wet looper, and coater operation is
about $958/Mg ($869/ton) for the ESP with cooling system, $l,070/Mg
($971/ton) for the HVAF with cooling system, and $2,650/Mg ($2,400/ton)
for the A/B W/HR operating at 760°C (1400°F). The cost effectiveness of
the devices used on the material handling systems ranges from $259/Mg
8-107
-------
TABLE 8-46
TABLh a 4b.
COST EFFECTIVENESS OF POLLUTION CONTROL DEVICES
.___ . . n n. . A i -r- r\s\r\r~T M/"* n| A M~TC
^^ — .^— ^— — —
Control
device
ESP/HEb
HVAF/HE6
A/B H/HRd
A/B W/HR
CYCe
F/Ff
H/E9
•n •'
_ —
-
Operating
characteristics
.. - . 7 — E~T nr TOFT
till •*/ S
4.93
4.93
2.83
2.83
2.83
2.83
3.30
3.30
4.93
0.66
0.99
1.04
1.37
0.66
0.99
1.04
1.37
0.21
0.35
0.425
V sc i in;
..
(10,450)
(10,450)
(6,000)
(6,000)
(6,000)
(6,000)
(7,000)
(7,000)
(10,450)
(1,400)
(2,100)
(2,200)
(2,900)
(1,400)
(2,100)
(2,200)
(2,900)
(450)
(750)
(900)
38 (100)
38 (100)
482 (MO)?
760 (1400)"
482 (900)J.
760 (1400)J
482 (9001
760 (1400)
760 (1400)
Ambient
Ambient
Ambient
Ambient
Ambient
Ambient
Ambient
Ambient
54 (130)
54 (130)
54 (130)
.
Cost
Annualized
cost ($)
.
58,900
65,800
26,840
34,900
69,200
93,400
79,200
103,100
163,000
3,600
4,500
4,800
5,600
7,900
8,900
9,300
10,200
7,000
8,800
9,300
—
effectiveness in $/Mq ($/ton)
Pollutants
collected
Mg (tons)
--
61.50
61.50
293.7
355.3
612.8
699.4
733.8
886.0
61.50
10.45
15.62
16.43
21.65
12.85
19.28
20.20
26.63
3.52
5.90
6.90
•
(67.79)
(67.79)
(324.0)
(391.5)
(675.6)
(771.1)
(808.9)
(977.0)
(67.79)
(11.52)
(17.22)
(18.11)
(23.87)
(14.17)
(21.25)
(22.27)
(29.35)
(3.88)
(6.50)
(7.61)
tost
effectiveness3
J/Mg $/ton
958
1,070
91
98
113
134
108
116
2,650
344
288
292
259
615
462
460
383
1,988
1,492
1,348
869
971
83
89
102
121
98
106
2,400
313
261
265
235
558
419
418
348
1,804
1,354
1,222
^Cost effcctivenBSS is the annual ized cost OT tne PL. .
pollutants collected annually (4,000 h/yr operation).
bESP/HE " electrostatic precipitator with cooling system
CHVAF/HE = high velocity air filter with cooling system.
dA/B H/HR - afterburner with heat recovery.
5VE * «ist eliminator.
fF/F « fabric filter.
?M/E = mist eliminator.
.Data based on 2,000 h/yr operation.
JData based on 4,000 h/yr operation.
8-108
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8-109
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($235/ton) to "$344 ($313/ton) for cyclones, and ranges from $383/Mg
($348/ton) to $615/Mg ($558/ton) for fabric filters. The cost effective-
ness of the mist eliminator on the asphalt storage tanks ranges from
$l,348/Mg ($1,222/ton) to $l,988/Mg ($1,804/ton). The A/B W/HR on the
blowing stills has a cost effectiveness which ranges from $91/Mg ($83/ton)
to $134/Mg ($121/ton) when operating at 482°C (900°F), and ranges from
$98/Mg ($89/ton) to $116/Mg ($106/ton) when operating at 760°C (1400°F).
These data indicate that the most cost effective device for controlling
the saturator, wet looper, and coater operation under Regulatory
Alternatives 2 to 5 is the ESP with cooling system. The HVAF with cooling
system costs about $112/Mg ($102/ton) more than the ESP with cooling
system. The A/B W/HR operating at 760°C (1400°F) costs about $l,692/Mg
($l,531/ton) more than the ESP with heat exchanger. The A/B W/HR is
about two times as expensive on a dollar-per-megagram (dollars-per-ton)
basis as the other two devices installed on the saturator, wet looper,
and coater operation.
The data given in Table 8-46 also indicate the cyclones on the
filler surge bin and storage operation, and the parting agent bin and
storage operation, are more cost effective than the fabric filters. The
fabric filters cost about $300/Mg ($270/ton) to $480/Mg ($435/ton) more
than the cyclones. This indicates that Alternatives 4 and 5, which use
the fabric filters, are less cost effective than Alternatives 2 and 3,
which use the cyclones.
8.2.2.8.2 Cost effectiveness comparisons of regulatory alternatives.
The data in Table 8-47 indicate that the most cost effective regulatory
alternative is No. 3 and that Alternatives 3 and 5 are more cost effective
than Alternatives 2 and 4.
8.2.3 Cost Summary
The capital investment costs, annualized costs, and unit product
costs for new model asphalt roofing plants with pollution control systems
are given for small, medium, and large plants, both with and without
blowing stills, for the five regulatory alternatives. These costs are
derived from the information presented in the previous two sections
(8.2.1 and 8.2.2).
8-110
-------
The capital investment costs represent the total investment required
to construct new model asphalt roofing plants and install a new pollution
control system, and include direct costs, indirect costs, contractor's
fee, and contingency. Tables 8-48 to 8-50 show the total capital invest-
ment cost for each regulatory alternative and plant configuration (with
or without blowing stills) for small, medium, and large plants,
respectively. The small plants cost $9,178,000 to $9,577,000; the medium
plants cost $14,948,000 to $15,589,000; and the large plants cost
$17,603,000 to $18,388,000. The pollution control systems cost $232,000
to $467,000 for small plants, $447,000 to $758,000 for medium plants,' and
$650,000 to $1,050,000 for large plants. The pollution control systems
represent 2.5 to 4.9 percent of the total capital investment cost of
small plants, 3.0 to 4.9 percent of the total capital investment cost of
medium plants, and 3.7 to 5.7 percent of the total capital investment
cost of large plants.
The annualized costs represent the variable, fixed, and overhead
costs required to operate the plants and represent the variable and fixed
costs required to operate the pollution control systems. Tables 8-51 to
8-53 show the total annualized cost for each regulatory alternative and
plant configuration for small, medium, and large plants, respectively.
The annualized cost for small plants is $14,761,000 to $14,920,000; for
medium plants is $27,773,000 to $28,118,000; and for large plants' is
$34,477,000 to $34,983,000. The pollution control systems cost $64,000
to $261,000 per year to operate at small plants, $121,000 to $435,000 per
year to operate at medium plants, and $175,000 to $650,000 per year to
operate at large plants. The annualized costs of the pollution control
systems represent 0.4 to 1.7 percent of the total annualized cost of
small plants, 0.4 to 1.5 percent of the total annualized cost of medium
plants, and 0.5 to 1.8 percent of the total annualized cost of large
plants.
The unit product costs represent the annualized cost of the plant
plus the annualized cost of the pollution control system divided by the
annual production of roofing shingle sales square at each plant. The
small plants produce 1,030,000 roofing shingle sales squares annually;
the medium plants produce 2,060,000 sales squares annually; and the large
8-111
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plants produce'2,640,000 sales squares annually. Tables 8-54 to 8-56 show
the unit product costs for each plant configuration and regulatory
alternative for small, medium, and large plants, respectively. The cost
of a roofing shingle sales square at small plants is $14.33 to $14.47; at
medium plants is $13.48 to $13.64; and at large plants is $13.06 to
$13.25. The unit product cost increase attributed to the annualized cost
of the pollution control system at small plants is $0.06 to $0.25; at
medium plants is $0.06 to $0.21; and at large plants is $0.07 to $0.25.
The cost increases attributable to the pollution control system operations
represent a cost increase in the total unit product cost of 0.4 to
1.7 percent at small plants; 0.4 to 1.6 percent at medium plants; and 0.5
to 1.6 percent at large plants.
8.3 OTHER COST CONSIDERATIONS
This section summarizes the cost currently being imposed upon the
asphalt roofing and siding manufacturing industry (ARM) as a result of
(1) the Water Pollution Control Act (WPCA); (2) the Resource Conservation
and Recovery Act (RCRA); and (3) the Occupational Safety and Health
Administration (OSHA).
The impact of the alternative regulatory options on the resource
requirements of State, regional, and local regulatory and enforcement
agencies is also assessed in this section.
8.3.1 Water Pollution Control Act
The Development Document for Proposed Effluent Limitation Guidelines
and New Source Performance Standards for the ARM industry was published
by EPA in 1974.51 At that time, the cost to the industry to comply with
best available technology economically acceptable (BATEA) was estimated
to be $0.18/Mg ($0.16/ton) of product (1973 dollars). Standards based on
these guidelines have not yet been finalized. Thus, the ARM industry is
not currently subject to specific provisions under the Water Pollution
Control Act.
The ARM industry has minimized waste water discharge in recent years
by recirculating cooling water, substituting cooling rolls for direct
8-118
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contact cooling spray, and by recirculating cooling water used in emission
control systems.
In the absence of specific performance standards for water emissions,
there should be no cost impact that would inhibit the industry's ability
to bear the increased costs associated with air pollution regulations.
8.3.2 Resource Conservation and Recovery Act
The Resource Conservation and Recovery Act (RCRA) requires all
sources of hazardous solid wastes (1) to record quantities of hazardous
waste generated; (2) to label all containers used in storage, transport,
or disposal; (3) to use appropriate containers; (4) to furnish information
on chemical composition of such waste to handlers; (5) to use a system to
assure proper disposition of wastes generated; and (6) to submit reports
to the Administrator detailing quantities of wastes generated and the
disposition of those wastes. It is not known if the ARM industry is a
source of hazardous waste. Asphalt rooffng plants presently employ
conservation techniques such as recycling paper and waste wood materials
in the manufacture of felt, reusing reclaimed oil as fuel or feed stock,
and recovering waste heat from afterburners for use in other plant
operations. Therefore, if the ARM industry becomes subject to the
provisions of the RCRA, only minimal costs may be incurred due to waste
produced from additional control equipment required to meet the proposed
alternative regulatory options.
8.3.3 Occupational Safety and Health Administration Act
Several asphalt roofing plants were visited during the course of
this program. It was the opinion of personnel at plants visited that the
impact of OSHA regulations on the industry is minimal. One particular
plant had recently been inspected by OSHA personnel with no resulting
violations.55 Several OSHA offices have been contacted to ascertain if
there were any compliance problems in the ARM industry plants. There
were no reported problems and no reported violations.
The control equipment required under the alternative regulatory
options should result in minimal OSHA-related compliance costs (i.e.,
electrical, plumbing, and similar equipment). The ARM industry's ability
to comply with any one of the alternative regulatory options would there-
fore not be greatly affected by the economic impact of OSHA regulations.
8-122
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8'3-4 Resource Requirements Imposed on State. Regional, and Local
Agencies
The State Implementation Plans which have been approved by EPA
require that a company make an application and receive a permit to construct
before it is allowed to begin construction.56'57 The application for the
construction permit must list all emission sources, the control system
for the emission sources, the nature of the emission (particulate, CO),
and all pertinent drawings.
After construction is completed, the States require that the company
apply for and receive a permit to operate before operation can be started
The application for operation must contain pertinent emission test data.
Certain local and regional agencies also require construction and operating
permits before construction of a new plant is started.58 However, since
no more than one new asphalt roofing manufacturing plant per year is
estimated to be constructed in the United States through 1985, the
promulgation of standards for this industry should not impose major
resource requirements on State, regional, and local agencies.
8.4 ECONOMIC IMPACT ASSESSMENT
8-4.1 Introduction and Summary
8.4.1.1 Introduction. This section will assess the economic impact
of the potential NSPS on asphalt roofing manufacturing plants. Economic
profile information on the industry presented in Section 8.1 will be a
principal input to this assessment. The impact on individual new plants
will be assessed by using model plants that represent small, medium, and
large members of the industry. Various financial analysis techniques
will be applied to the model plants. These findings will be assessed,
based on the industry profile, to determine industrywide impacts.
As noted in previous chapters the fundamental manufacturing processes
for which the NSPS is being developed is the asphalt saturator and
blowing still operations of roofing material manufacture. This process
is generally similar throughout the 118 asphalt roofing manufacturing
plants. While the process is similar, there is considerable difference
in plant size attributable to the number of plant production lines. For
the purpose of this study, small plants have been designated as those
8-123
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with one roofing line; medium plants, those typically having two roofing
lines; and large plants, those with two roofing lines plus an integrated
saturated felt line. Saturated felt, an organic material frequently made
from recycled wastepaper and saturated with asphalt, is basic feedstock
for roofing manufacturing plants.
8.4.1.2 Summary. A discounted cash flow analysis demonstrates that
an investment in a new asphalt roofing manufacturing plant will remain a
profitable investment after the addition of controls required by Regulatory
Alternative 5, the most stringent alternative. The investment is profi-
table for all three model plant sizes: small, medium, and large.
If this additional contrdl cost is completely passed through to
customers, it will raise the price of the product by 0.1 percent, a minor
increase. If the control cost must be completely absorbed by the
manufacturers, the profit margins of the manufacturers are such that a
reduction in profit margin equivalent to 0.1 percent of the price will
not have a major economic impact.
The Alternative 5 controls will add, at most, 0.7 percent to the
total initial investment required for a model plant. The additional
0.7 percent is a minor increase and will not restrict capital availa-
bility for the new plant.
Overall, the most stringent alternative will not have a significant
economic impact on the asphalt roofing industry.
8.4.2 Ownership. Location, and Concentration Characteristics
Ownership characteristics range from single plant, privately held
operations to large, publicly held corporations that own as many as 26
roofing plants. The publicly held companies are diversified corporations
within which the manufacture of shingles may represent one of as many as
10 distinct business segments. The various business segments may or may
not be related to asphalt roofing, such as building materials, metal
products, photography, sugar operations, etc.
In the above companies, the sales contribution from the asphalt
roofing products line ranges from less than 10 percent to more than
80 percent of a company's total sales.
The seven largest members of the industry own 85 of the total
118 plants in the industry, or 77 percent. The plants are distributed
8-124
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across the country, approximately conforming to the population distri-
bution.
There is a gradual move underway in the industry toward consolidation
of ownership through both vertical and horizontal integration.60 Evidence
of vertical integration is provided by the fact that the manufacture and
distribution of shingles was previously two distinct business activities
carried on by separate companies, but over the past few years, corporations
have been increasingly combining the manufacture and distribution of
shingles into a single line of business.
Evidence of horizontal integration is supplied by the fact that from
1969 to 1978 there have been at least eight mergers or acquisitions
between companies in the industry.60
8-4.3 Pricing Mechanism
Transportation costs are an important element in the pricing mechanism
of the asphalt roofing industry. Manufacturers ship on a freight-equalized
basls, i.e., the customer pays no more in freight than it would cost from
the nearest supplier. A customer pays only the freight costs from the
closest available source of supply, regardless of the location of the
shipping or producing plant for a particular order. If a manufacturer
ships a greater distance, that manufacturer absorbs the additional freight.
Price shifts by one manufacturer of asphalt and tar roofing products
are readily communicated throughout the industry and result in an "evening
up" of all manufacturers' prices within a short time.
Since producers of asphalt roofing products generally sell their
products f.o.b. producer's plant with freight costs to the customer
equalized from the competitive producing or shipping point nearest to the
customer, the producer must often absorb a portion of the translation
cost of shipments. Therefore, a producer located considerably farther
away from a given area than other producers selling in that area cannot
profitably sell in that location at a competitive price. Transportation
costs become prohibitive beyond a radius of approximately 300 miles from
the manufacturer when another manufacturer is located nearer to the
customer.
8.4.3.1 Sup^Ty.. In general terms, the supply and demand relationship
in the asphalt roofing industry can best be summarized as stable.
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In spite "of the integral relationship between the asphalt roofing
manufacturing industry and the building industry, the asphalt roofing
industry is not a highly cyclical industry as is the building industry.
Figure 8-5 illustrates this stability. Production of asphalt roofing has
only varied by +7.7 percent per year (as shown in Table 8-21 a) over the
years since 1973, while over the same period of time new housing starts
have fluctuated by as much as +34.3 percent in a single year. Produc-
tion of asphalt roofing for 1977 is 3.7 percent below the peak production
of 1973. The reason asphalt roofing is not a highly cyclical industry is
that there are two segments in the total market. One segment is the new
construction market and the other segment is the reroofing market for
existing structures. The reroofing segment of the market comprises from
50 to 70 percent of the total market, depending on the activity for new
construction.60 Since reroofing is an appreciable amount of the total
market and is stable, it dampens swings in asphalt roofing production.
Entry into the industry is relatively easy for several reasons: there
are no major patent obstacles, high technology is not involved, and the
capital requirements are not excessive by manufacturing standards. In
spite of the ease of entry into the industry, the industry does not have
a history of excess expansions of capacity that lead to oversupply problems.
8.4.3.2 Demand. On the other side of the supply and demand equation,
the industry has inelastic demand over a wide range. The industry has
experienced rapidly rising costs, the major cause of which has been
rising asphalt prices, which rose 41.8 percent from 1974 to 1979.
Figure 8-6 illustrates that production (demand) has increased at the same
time that prices have increased sharply. This demonstrates inelastic
demand. An examination of published statements by industry members,
actions by industry members, statements by industry observers, and industry
profits and prices indicate that producers have been able to pass through
cost increases and maintain acceptable profits. '
There are several reasons for the industry's inelastic demand.
First, a roof is an indispensable part of a building. Second, the
competitive product (wood shingles) costs about 60 percent more than
asphalt shingles. Third, in the volatile new housing segment of the
market, the cost of the shingles, as sold by the manufacturer, represents
8-126
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Cumulative % of new housing starts from 1969 base.
asphalt roofin9 production
70 71 72 73 74 75 76 77
Figure 8-5. Stability in Asphalt Roofing Production.
Sources: Statistical Abstract of the United States 1977
Section 8.1. '
8-127
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a Cumulative % of Asphalt Roofing Producer Price Index
from 1969 base
ITTl Cumulative % of Asphalt Roofing Production from
»-LU 1969 base
140 _
130 _
120-
110-
100^
90 _
80_
70 _
60' _
50 _
40 _
30 _
20 _
10_
0
-10
ion —
70
•
/71
j
72
1 i
. 73 . 74
1
75
r— *-
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76 77
Figure 8-6. Relationship Between Price and Production
Source: Section 8.1
8-128
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less than one percent of the cost of a new house, so that small increases
in the price of shingles produce very small increases in total new housing
costs.
The trend line for the production of asphalt roofing shows a 2 percent
annual growth rate from 1969 to 1977.63 This growth rate is likely to
continue over the next 5 years for two reasons. First, the reroofing
market (additions, alterations, and repairs) has been growing over recent
years and should continue to generate firm demand for asphalt shingles.
Second, demand for the new housing sector of the roofing market should be
high. The population demographics are favorable for the housing market,
particularly in the important 25- to 34-year-old age group. Also, housing
has gained increased popularity as an inflation hedge.
To date, the changes in capacity that have been announced by industry
indicate that supply should remain in line with demand. Therefore, over
the next 5 years the relationship between supply and demand should be
sufficiently balanced to permit manufacturers to pass through cost in-
creases and maintain profits, as they have been able to do in the past
when supply and demand has been in balance.
8-4-3-3 New Developments. A change that is taking place in the
industry is the increased popularity of fiber glass, mat-based shingles.
As fiber glass, mat-based shingles increase their market share, more
companies are beginning to change from the production of felt to fiber
glass. The market share of fiber glass, mat-based shingles has grown as
follows:
1975 1976 1977 1978 (est.)
3.29% 4.45% 8.0% 12.0%
By 1980 ARMA expects fiber glass shingles to account for 20 percent of
the market. By the early 1980's, industry members expect fiber glass
shingles to account for 50 percent of the market, as discussed in
Section 8.1.
Two reasons for the popularity of fiber glass mat shingles are their
increased durability, 20 years of life versus 15 years for organic shingles,
and their improved fire rating, Class A (the highest) versus Class C for
organic shingles.64
8-129
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Fiber glass mat shingles are currently about 5 percent more expensive
than organic mat shingles; however, fiber glass mat" shingles require
approximately 12 percent less asphalt to produce, so that in the near
future, as the cost of asphalt continues to rise, the 5 percent cost
C. d C.C.
difference should be eliminated. '
The only difference in the manufacturing process between producing
fiber glass mat shingles and organic mat shingles is that the fiber glass
mat shingles bypass the saturating step in the production process. In
this study the NSPS incremental costs and costs of production are those
of the organic mat operations. This results in a conservative finding of
NSPS impacts on fiber glass operations.
8.4.4 Methodology
This section will describe the methodology used to measure the
economic impact of the NSPS on the asphalt roofing manufacturing industry.
The principal economic impact that will be assessed is the effect of
incremental costs of NSPS control on the profitability of new grassroots
plants.
In the analysis which follows, each model asphalt roofing manufac-
turing plant will be evaluated as if it stands alone, i.e., the firm is
not associated with any other business activity nor is it associated with
any larger parent company. This assumption has the effect of isolating
the control cost without any assistance from other business activities or
firms.
Since each State Implementation Plan (SIP) contains particulate
emission control standards, any new plant would have to meet SIP standards
in the absence of a NSPS. Therefore, incremental NSPS control costs are
the control costs over and above those baseline costs required to meet
the various SIP standards.
Economic impact is evaluated on model plants whose description is
based on representative characteristics of new roofing plants, such as
production capabilities, asset size, and other financial measures. The
model plants provide an indication of the degree of impact on all new
plants in the industry by incorporating into the model the major charac-
teristics prevailing in various size segments of the roofing industry.
8-130
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They do not represent any particular existing plant, as any individual
plant will differ in one or more of the above characteristecs.
The primary analytical technique employed in determining whether a
capital investment should be accepted is discounted cash flow (DCF)
analysis. Additionally, internal rate of return and playback will be
calculated. DCF measures the discounted cash inflows over the life of an
investment and compares them to the discounted cash outflows including
the initial investment, If the sum of the discounted cash inflows is
equal to, or greater than, the sum of the discounted cash outflows, the
investment provides a return equal to, or greater than, the firm's'cost
of capital and the investment should be accepted. If the sum of the dis-
counted cash inflows is less than the sum of the discounted cash outflows,
the investment provides a return less than the firm's cost of capital and'
the investment should be rejected.
Cash flow is used because it is cash that is required to meet a
firm's obligations regardless of how bright that firm's financial picture
may be "on paper." Essentially, determining cash inflow involves calcu-
lating net earnings and adding depreciation, which is a non-cash expense.
All cash flows must be discounted to the present by use of an appro-
priate discount factor to enable comparison. The discount factor accounts
for the time value of money, i.e., $1 today is worth more than $1 a year
from today. In addition, the discount factor includes a return (profit)
to the firm as compensation for bearing the risk that is inherent in the
investment.
8-4.5 Critical Elements of the DCF
Calculations developed by the DCF method depend on the validity of
the elements that comprise the DCF equation. These elements are:
1. project life;
2. depreciation;
3. hours of annual operation;
4. revenue and cost of manufacture;
5. control costs;
6. control cost passthrough versus control cost absorption; and
7. discount factor.
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The project life of the investment is taken as 10 years, the useful
life of most of the major pieces of production equipment found in the
plants. Some of the equipment should last longer and the building should
have a useful life of approximately 20 years. To the extent that buildings
and equipment have a useful life longer than 10 years and no salvage
value is included in the calculations, the 10-year choice is conservative.
Annual operation is assumed at 4,000 hours based on: 16 hours/day x
5 days/week x 50 weeks/year = 4,000 hours/year.
Annual revenue and cost of manufacture are assumed constant in the
calculations. This assumption, made for simplicity of presentation,
essentially assumes a constant profit margin over the project life. This
is consistent with historical performance in that manufacturers, with
minor variations, have typically been able to maintain their profit
margins. Sensitivity analysis was performed in order to determine the
effect of a possible decline in profit margins sustained over the entire
10 year life of the project that could result from price competition
and/or an increase in costs. The sensitivity analysis evaluated the
effect of a 10 percent decrease in profit margins. If the profit margins
increase rather than decrease, the plant's financial position improves
accordingly and NSPS controls become proportionately less costly.
Control costs are as shown previously and represent Regulatory
Alternative 5.
Depreciation is calculated using the straight-line method. Depreciation
could also be calculated using one of several accelerated methods that
would have the effect of increasing paper expenses but decreasing tax
payments and consequently increasing cash flow in the early years.
Straight-line is used because it results in the most conservative dis-
counted cash flow projections.
In the DCF analysis it is assumed that the control cost will be
completely absorbed by the manufacturer with no cost passthrough in the
form of higher prices. This represents a worst-case assumption.
A 10 percent discount factor is used. With a typical capital struc-
ture of 30 percent debt financing, 70 percent equity financing, and a
50 percent tax rate, the 10 percent discount factor represents a 10 percent
8-132
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Equity
Debt
Capital
structure
70% X
30% X
Capital
costs
12%
10%
cost of debt and a 12 percent cost of equity, which is realistic for this
industry.
Tax rate
N/A* =8.4
X 50% = 1.5
9.9 = 10% discount factor
In order to guard against the possibility that a 10 percent discount
factor is too low, sensitivity analysis was performed using 15 percent as
a discount factor, which would represent an increase in the cost of
equity from 12 percent to 19.3 percent.
Capital Capital
structure costs Tax rate
Equity 70% X 19.3% N/A* =13.5
Debt 30% X 10.0% 50% =_L5
15% discount factor
8.4.6 Data Sources
The following list provides the data sources for various aspects of
the analysis:
1. average selling price - Section 8.1
costs - Section 8.2
debt to equity ratio - annual reports
costs of debt capital - annual reports
costs of equity capital - annual reports
alternative control options - Section 8.2
sizes and operating hours - Section 8.2
depreciation schedules - Section 8.2 and Internal Revenue Code
investment tax credit - Internal Revenue Code
plant investment - Section 8.2
Plant Investment
2.
3.
4.
5.
6.
7.
8.
9.
10.
8.4.7
.131
.131
.131
For each of the three model plant sizes, the capital investment
costs represent the total investment required to construct new model
*Not applicable.
8-133
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asphalt roofing plants with a blowing still and to install a new baseline
pollution control system, plus one of the air pollution control alterna-
tives. These capital investment costs include direct costs, indirect
costs, working capital, contractor's fee, and contingency. A detailed
description of the costs was presented in Section 8.2.
8.4.8 Discounted Cash Flow Analysis
Tables 8-57, 8-58, and 8-59 show the DCF analysis for each of the
three model plants. All dollars are constant end-of-1978 dollars. All
cash flows occur at the end of each year. State income tax is not included
because each State has its own particular rate, which would complicate
the presentation; Texas, which is an important producer State, has no
State income tax, and some States permit Federal income tax deducibility.
Even if State taxes were included despite all these drawbacks, the results
would be affected insignificantly.
1. Row 1, revenue of these tables, is calculated by multiplying the
number of squares that the plant produces by the average selling price of
one square. The average selling price of one square is taken to be
$16.51. Annual operating time is considered to be 16 hours/day x
250 days/year = 4,000 hours/year. The revenue is assumed to be constant
for each year.
2. Row 2, cost of manufacture, represents annualized costs (exclud-
ing interest, which is considered in the discount factor) as shown in
Table 8-28 in Section 8.2. Cost of manufacture includes baseline control
costs that would be required by SIP's irrespective of an NSPS. Costs
vary according to plant size. Costs per square (the number of shingles
to cover 100 square feet) for each plant (with blowing still) are:
a. small plant: $14.27 minus $0.56 interest = $13.71
b. medium plant: $13.42 minus $0.45 interest = $12.97
c. large plant: $13.00 minus $0.41 interest = $12.59
Annual operating time is the same 4,000 hours as noted above. Cost of
manufacture is assumed to be constant for each year.
3. Row 3, control costs, is the incremental cost for most stringent
control option.
4. Row 4,. earnings before tax, is revenue minus costs (cost of
manufacture and control costs).
8-134
-------
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8-137
-------
5. Row 5, tax liability, is calculated by multiplying earnings
before tax by the marginal Federal corporate income tax rate, which is
currently 46 percent.
6. Row 6, investment tax credit (ITC), considers the 10 percent
investment tax credit, which acts to reduce the tax liability of the
plant (total direct investment plus blowing still plus baseline controls
less building) by 10 percent.
7. Row 7 is the control investment tax credit for NSPS controls.
8. Row 8, net earnings after tax, represents earnings before tax
minus tax liability plus investment tax credit. For example:
Net earnings before tax $100
Less tax liability -46
Plus investment tax credit +10
$64
9. Row 9, depreciation, is an non-cash expense and, as such, is
added to net earnings after tax for the purpose of determining cash flow.
Depreciation is calculated using the straight-line method.
10. Row 10, control depreciation, represents depreciation of the
most stringent regulatory control option and is calculated using the
straight-line method for 20 years, which is conservative.
11. Row 11, net cash flow, is the result of adding net earnings
after tax and depreciation.
12. Row 12, discount factor, shows the present value of a dollar of
future cash flow for each future year. The discount factor used is
10 percent, which represents the weighted average cost of capital.
13. Row 13 is the discounted cash flows. After the annual cash inflows
are discounted, they are summed to derive the present value of the cash in-
flows over the life of the project. The discounted cash inflows are then
compared to the sum of the discounted cash outflows. The difference is
the net present value (NPV).
8.4.9 Fi ndi ngs
8.4.9.1 Control Affordability
1. DCF - The results of the discounted cash flow analysis from
Tables 8-59, 8-60, and 8-61 show that all three model plants have a
positive NPV. The small plant has an NPV of $5,211,000; the medium plant
8-138
-------
66
has an NPV of $17,072,000; and the large plant has an NPV of $25,609 000
The pomwe NPV means that after including the 10 percent required "
return, the investment yields an additional amount over the project life
expressed in today's dollars.
2. IRR - A second financial test shows that the internal rate of
return for each of the model plant sizes is 21 percent for the small
P ant, 31 percent for the medium plant, and 37 percent for the large
plant. a
3. Paybacks - Additionally, the cash flow projections for the
small, med.um, and large model plants indicate. a payback period of 4 years
3 years, and 2-1/2 years, respectively, an attractive payback period for
most manufacturing operations. A less-than-5-year payback also meets an
investment criterion explicitly published by one member of the industry !
Since the above tests indicate that each of the three model plants
remains a profitable investment after the addition of the most stHngent
regulatory control option in the absence of cost passthrough, it can be
assumed that this addition will not exert a signifies economic impact
Several secondary indicators also sustain this finding-
' $ens analysis for the DCF - This was performed on the
nr .. on
prom marg1n for the small plant by reducing the profit margin by
4 « "* r6CalCUlating the NPV' ^ NPV remained positive by
258,000. An additional sensitivity analysis was performed by changing
the discount factor from 10 to 15 percent and recalculating the NPV
Here again, the NPV remained positive by $2,572,000 for the small p!ant
cont : VC6nt ™CreaS* *"^""LBTlce - The most stringent regulatory
control opt.on will add a maximum of $0.021 to a selling price of $16 51
per square, or approximately 0.1 percent. This can be compared to cost
push once increases of 39.3 percent, or $3.26 per square in 1974 or
more recently an average annual increase of 9 percent from 1975-1977
3" P°ntrol cost passthrouoh ys. ahcnT+^n - In tne DCF n .g
assumed that the control cost will have to be completely absorbed by the
manufacturer with no cost passthrough in the form of higher prices This
represents a worst-case assumption because the demand is inelastic over a
constable range. The industry has an approximate after-tax profit on
sales of 5.7 percent. To the extent that control costs could be either
8-139
-------
partially or completely passed through, the financial performance of the
model plants would improve.
In addition to these quantitative indicators, some additional insight
into industrial viability can be gained by examining the actions of com-
panies in the industry. Large, sophisticated firms perceive the industry
as attractive to new investment, and several entrenched firms in the
industry are extending their operations. Several examples include:
1. Georgia Pacific opened its first roofing plant in Franklin,
Ohio, in 1978. Construction was also begun on a new roofing plant at
Quakertown, Pennsylvania, and plans were announced for a third roofing
plant to be located near Atlanta, Georgia.
2. GAP Corporation is building a new roofing plant in Fontana,
California, that will go into operation in 1980; it will be the company's
fourteenth roofing plant.
3. CertainTeed Corporation opened a new roofing plant in Oxford,
North Carolina, in March of 1978.
4. Owens-Corning Fiberglas Corporation purchased Lloyd A. Fry
Company and Trumball Asphalt Company for approximately $180,000,000 in
cash in 1977.
8.4.9.2 Capital Availability for Control Systems. The necessary
capital is likely to be available to companies for the purchase of control
equipment.
The total capital required to meet NSPS for a small model plant
would add $71,000 to an initial investment of $9,506,000, a 0.7 percent
increase. The figure for medium and large plants is 0.7 percent and
0.5 percent, respectively. This increase in the initial investment is
not likely to seriously alter the capital availability situation for a
company which otherwise can obtain the necessary capital.
The majority of the companies that are entering the industry for the
first time or expanding an existing position in the industry are major,
publicly held corporations that provide improved access to the financial
markets as well as considerable internal financial strength and business
sophistication. These publicly held companies have debt-to-equity ratios
of approximately 30 percent, which is indicative of reserve borrowing
power.
8-140
-------
Finally, a variety of special pollution control financing arrange-
ments are available to new asphalt roofing manufacturing p!ants, such as
low interest bank loans, SBA loans, and Industrial Development Bonds
These sources of funds generally provide loan rates and repayment terms
more favorable than general industrial borrowing.
8'4-10 Affected Facilities in Other Inr.t^nc An integrated
asphalt roofing plant includes an asphalt blowing operation. There are
approximately 24 plants where the asphalt blowing operation, although
Physically adjacent to the roofing plant, was a separate corporate entity
These units have since been purchased by one company and are thus considered
integrated roofing plants. Blowing stills are also installed in petroleum
refines and, in very rare occasions, as production units without ties
to either a refinery or a roofing plant. Control costs for new stills in
refineries will have no more economic impact than those in roofing plants
The control equipment is the same, and any captured pollutants can be
recycled to the refining process.
The installation of a new blowing still in an asphalt processing
plant should result in the same increase in annualized costs as for the
refinery or roofing plant. The control equipment would be the same as is
presently used. The increase in fuel usage required under NSPS would be
one cubic meter of oil for each 488 megagrams of asphalt processed (one
barrel of oil for each 85.5 tons of asphalt processed).
8.5 SOCIO-ECONOMIC IMPACT ASSESSMENT
The purpose of Section 8.5 is to address those tests of macroeconomic
impact as presented in Executive Order 12044 and, more generally, to
assess any other significant macroeconomic impacts that may result' from
the NSPS.
The economic impact assessment is concerned only with the costs or
negative impacts of the NSPS. The NSPS will also result in benefits or
positive impacts, such as cleaner air and improved health for the popula-
tion, potential increases in worker productivity, increased business for
the pollution control manufacturing industry, and so forth. However, the
NSPS benefits will not be discussed here.
8-141
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8.5.1 Executive Order 12044
Executive Order 12044 provides several criteria for a determination
of major economic impact. Those criteria are:
1. Additional annualized costs of compliance that, including capital
charges (interest and depreciation), will total $100 million (a) within
any one of the first 5 years of implementation (normally in the fifth
year for NSPS), or (b) if applicable, within any calendar year up to the
date by which the law requires attainment of the relevant pollution
standard.
2. Total additional cost of production of any major industry product
or service will exceed 5 percent of the selling price of the product.
3. Net national energy consumption will increase by the equivalent
of 25,000 barrels of oil per day.
4. Additional annual demand will increase or annual supply will
decrease by more than 3 percent for any of the following materials by the
attainment date, if applicable, or within 5 years of implementation:
plate steel, tubular steel, stainless steel, scrap steel, aluminum,
copper, manganese, magnesium, zinc, ethylene, ethylene glycol, liquified
petroleum gases, ammonia, urea, plastics, synthetic rubber, or pulp.
The asphalt roofing NSPS will not trigger any of the above four
criteria.
1. The NSPS will not add to the annual i zed costs for a new medium
plant. There are three new medium plants projected to be built over the
next 5 years (annualized costs for a small and large plant are $22,000
and $38,000, respectively). This is compared to a $100 million trigger.
2. The NSPS will add a maximum of 0.1 percent to the selling price
of the product. This potential increase is far below the 5 percent
trigger.
3. The NSPS will lead to an increase in oil consumption of
124 barrels per day. This 124-barrels-per-day increase compares to a
25,000-barrels-per-day increase for use as a trigger.
4. The NSPS will result in no perceptible change in demand or
supply. Executive Order 12044 states that a change of 3 percent or more
should be used .as a trigger.
8-142
-------
Additionally, both the small dollar cost of the NSPS controls and
the mherent economics of the industry, such as its geographical diversi-
ficatnon, lack of an import or export market, et al., preclude the
possibmty of significant macroeconomic impacts, either on a regional or
on a national basis. The NSPS will not aggravate national inflation
abrupt regional or national employment patterns, or change the U S '
balance of payments position.
8-143
-------
8.6 REFERENCES FOR CHAPTER 8
1 Asphalt Roofing Manufacturers Association. Manufacture, Selection
and Application of Asphalt Roofing and Siding Products. 10th ed.
New York, N.Y. 1970. p. 5.
2. Ref. 1, p. 3.
3 Barth, E. J. Asphalt-Science and Technology. New York, Gordon and
Breach, 1962. p. 425-427.
4. Ref. 1, p. 13, 14.
5 Letter and attachment from Quaranta, J. , Certai nTeed Products
Corporation, to Noble, E. A., EPA/ESED. September 8, 1975.
Supplemental information for 114 response.
6. Letter and attachments from Hambrick, M. M. , Celotex, to I Goodwin, . D.
R EPA/ESED. May 30, 1975. Information on plants at Goldsboro,
N.C. Los Angeles, Calif, and Cincinnati, Ohio.
7. Ref. 1, p. 41 a.
8. Ref. 1, p. 15.
9. Asphalt Roofing Manufacturers Association List of Plants: Asphalt
and Tarred Roofing Manufacturers. New York, N.Y. May M, IS/B. * p.
11
10. U.S. Census of Manufactures. Volume II US ^
Washington, D.C. Census for 1954, 1958, 1963, 1967, and
and Tar Roofing and Siding Products. U.S. Department of
1973, and 1975.
"•
1976 and 1977.
14. Evans, J. V. Asphalt. ^ . Ki>k-0thmer Encyclopedia of Chemical
Technology, Volume 3, 3rd editnon, Mark, H. F. , et al . (ed.). New
York, John Wiley & Sons, 1978.
15 Cantrell, A. Annual Refining Survey. The Oil and Gas Journal.
76(12): 108-146. March 20, 1978.
8-144
-------
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
Annual Survey of Manufactures: Industry Profiles. U.S. Department
of Commerce. Washington, D.C. M(AS). Surveys for 1969, 1970, 1971,
and 1976.
Ref.l, p. 1. •'....
U.S. General Imports: Schedule A Commodity Groupings by World Area
5'cTe?cn^ent °f Commerce- Washington, D.C. FT ISO/Annual 1973*
and FT ISO/Annual 1977. October 1974 and July 1978.
U.S. Exports: Schedule B Commodity Groupings by World Area U S
Department of Commerce. Washington, D.C. FT 450/Annual 1973 and FT
450/Annual 1977. June 1974 and June 1978.
Handbook of Labor Statistics 1977. U.S. Department of Labor
Washington, D.C. Bulletin 1966. 1977.
Monthly Labor Review. U.S. Department of Labor. Washington, D.C.
Volume 102, Number 2. February 1979.
Statistical Abstract of the United States, U.S. Bureau of Census
1970' 19?1> 1972> 1973> 1974> 1975,
MOT/MP North Carolina Asphalt Roofing Distributor with Ante!, D.,
MRI/NC. March 7, 1979. Prices of asphalt roofing shingles.
Cantrell, A. Annual Refining Survey. The Oil and Gas Journal
p. 97-123. March 28, 1977.
Telecon. Merz, S., Celotex Corporation, with Cooper, R. MRI/NC
March 8, 1979. Prices of dry materials for asphalt roofing plants.
Telecon. Lambert, D., Exxon Corporation, with Ante!, D., MRI/NC
March 8, 1979. Prices of asphalt.
Economic Indicators. Chemical Engineering. 86(6):7. March 12, 1979.
Franzblau and Fitzsimmons, Inc. Revised Proposal for Asphalt Roofing
Plant. Submitted to the Flintkote Company. Proposal No 245
Kearny, N.J. October 19, 1973.
Economic Indicators. Chemical Engineering. 86(4):7. February
Ib-jl.?/.?. >
Telecon. Lambert, D. , Exxon Company, with Ante!, D. , MRI/NC
March 8, 1979. Prices of asphalt.
Telecon. Clarke, S., CertainTeed Corporation, with Ante!, D
MRI/NC. March 30, 1979. Felt costs. '" -
8-145
-------
32. Telecon. Merz, S., Celotex Corporation, with Cooper, R. , MRI/NC.
March 8, 1979. Dry materials price for asphalt roofing plants.
33. Employment and Earnings, February 1979. U.S. Department of Labor.
Washington, D.C. Vol.. 26, No. 2. February 1979.
34 Telecon. Representative of Kansas City, Missouri, Water Department
with Kelso, G., MRI/KC. April 19, 1979. Cost of water in Kansas
City, Mo.
35. Retail Prices and Indexes of Fuels and Utilities, Residential Usage.
U.S. Department of Labor. Washington, D.C. June 1978.
36. Monthly Labor Review. U.S. Department of Labor. Washington, D.C.
Vol. 102, No. 3. March 1979.
37. Survey of Current Business. U.S. Department of Commerce.
Washington, D.C. Vol. 59, No. 3. March 1979.
38 Asphalt Roofing Manufacturers' Association. Manufacture, Selection,
and Application of Asphalt Roofing and Siding Products. 12th ed.
New York, N.Y. 1974.
39. Calculations for Chapter 8, Section 8.2.2.2.
40 Air Pollution Control Technology and Costs: Seven Selected Emission
Sources. U.S. Environmental Protection Agency. Research Triangle
Park, N.C. PB-245 065. December 1974.
41 Capital and Operating Costs of Selected Air Pollution Control Systems.
U S. Environmental Protection Agency. Research Triangle Park, N.C.
EPA-450/376014. May 1976.
42. Perry, R. H., and C. H. Chilton. Chemical Engineers' Handbook. 5th
ed. New York, McGraw-Hill Book Company, 1973.
43. Economic Indicators. Chemical Engineering. 86:(7):7. March 26, 1979.
44 Capital and Operating Costs of Pollution Control Equipment Modules -
Vol II - Data Manual. U.S. Environmental Protection Agency.
Washington, D.C. EPA-R573023b. July 1973.
45 Development of Cost Chapter for Control Techniques Document (CID)
for Asphalt Roofing Industries. U.S. Environmental Protection
Agency. Research Triangle Park, N.C. Contract No. 68022842.
November 1977. 15 p.
46. Economic Indicators. Chemical Engineering. 85:(15):7. July 17, 1978.
8-146
-------
47.
48.
50-
Nonmetallic Minerals Industries
68021473. February 1977.
Economic Indicators. Chemical
February 13, 1978.
»,-••-• • .- -~--'j|
Control Equipment Costs. U.S.
Research Triangle Park, N.C. EPA-
Engineering. 85:(4):7.
l Handbook- 4th
51. Development Document for Proposed Effluent Limitations Guidelines
and New Source Performance Standards for the Paving and Roofing
F?Aeria/?7i"Sra 3rd AsP|?f1t^ U-s- Environmental Protection Agency.
EPA 440/174/049, Group II. December 1974.
52. Memo from Shea, E. P., MRI/NC, to Noble, E. A., EPA/ISB.
March 29, 1979. Report on trip to CertainTeed plant, Oxford, N.C.
53. Memo from" Shea, E. P., MRI/NC, to Noble, E. A. EPA/ISB
April 3, 1979. Report on trip to Flintkote plant, Peachtree, Ga.
54' 9f°iQf-7rQ°m I*1-63' E- P" MRI/NC> to Noble, E. A., EPA/ISB. April
^, iy/y. Minutes of meeting with representatives of OwensCorning.
55. Memo from Shea, E P., MRI/NC, to 4654L Project File. May 15, 1979.
OSHA inspection of Flintkote plant, Peachtree, Ga.
56. Texas Clean Air Act. -Regulation 6, Control of Air Pollution by
Marm6tS197°r NeW Construct1on or Modification. Section 131.08.
57.
7 OTIC -m' „---••:: •'- Code- Tlt1e 7» Chapter 27, Subchapter 6,
7 2716.10. Permit to Construct and Certificate to Operate New
Jersey State Department of Environmental Protection. March 1, 1976.
58. Regulation 2 Division ;T3, Permits. Bay Area Air Pollution Control
District. February 1975. p. 5859.
59. 1978 Annual Reports for Bird & Son, Inc.; CertainTeed Corporation;
Mintkote, Inc.; GAF Corporation; Georgia-Pacific Corporation-
Johns-Manville, Inc.; Koppers Company; Masonite Corporation-
Corporati'on"9 F1berglas CorP°ration; u-s- Gypsum; and Jim Walter
60. Initial Decision in the Matter of Jim Walter, a Corporation. In:
United States of America before the Federal Trade Commission, Docket
May 6% 1976.
8-147
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61. 1977 Statistical Abstract of the United States. U.S. Bureau of
Census. Washington, D.C. September 1977.
62. 1978 Annual Report: GAP Corporation.
63 Goldfarb, J. Prospects for the Residential Roofing Market. Merrill
Lynch Pierce Fenner and Smith, Inc. [Presented at 1979 Papermaker s
Conference of the Technical Association of the Pulp and Paper Industry
(TAPPI)]. Boston. April 10, 1979.
64 Fiber Glass Shingles Grab Bigger Share of the Roofing Market
Professional Builder Apartment Business. Vol. II. August 1979.
65 Telecon. Taylor, M. R., JACA with Cotts, R. CertainTeed. May 3, 1979.
Concerning the Company's plans for the use of fiber glass.
66. 1978 Annual Report: Koppers Company, Inc.
8-148
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APPENDIX A. EVOLUTION OF THE PROPOSED STANDARD
In June 1974, the United States Environmental Protection Agency
initiated a screening study of the asphalt roofing manufacturing (ARM)
industry. Based upon the results of the screening study conducted in
July 1974, a study to develop the Background Information Document was
initiated for the ARM category.
In July 1974 a literature survey was begun, and state and regional air
pollution control agencies and the industry were canvassed by telephone and
mail to obtain information on plant operations and to determine which
plants, if any, appeared to be well controlled. Plant visits were then
scheduled to those plants which appeared, from the survey information, to
be the best controlled. The purpose of the plant visits was to obtain
information on process details, quantitites of emissions, and emission
control equipment. The feasibility of conducting future emission testing
was also determined during the plant visits.
Significant events relating to the evolution of the Background
Information Document for ARM are itemized in the chronology below.
A.I CHRONOLOGY
The important events which have occurred in the development of the
Background Information Document for Asphalt Roofing Manufacturing are
depicted below in chronological order.
A-l
-------
Date
May 31, 1974
July 16, 1974
July 17, 1974
August 14, 1974
August 14, 1974
October 24, 1974
October 25, 1974
November 5, 1974
November 5, 1974
November 6, 1974
November 8, 1974
November 11, 1974
November 11, 1974
November 12, 1974
November 25, 1974
November 26, 19-74
Activity
Project start date. Contract awarded
to MRI.
Literature and telephone surveys initiated.
Letters requesting information mailed to Texas
Air Control Board; LAAPCD; Bird and Son, Inc.;
Maryland Division of Air Quality; CertainTeed;
Johns-Manville; Commercial Testing and Engineer-
ing; and Valentine, Fisher, and Tomlinson.
Plant visit to GAP asphalt roofing plant,
Kansas City, Missouri.
Plant visit to CertainTeed asphalt roofing
plant, Kansas City, Missouri.
Plant visit to Celotex asphalt roofing plant,
Goldsboro, North Carolina.
Plant visit to Johns-Manville asphalt roofing
plant, Savannah, Georgia.
Plant visit to Lloyd A. Fry asphalt roofing
plant, Portland, Oregon.
Plant visit to Bird and Son asphalt roofing
plant, Portland, Oregon.
Plant visit to Malarkey asphalt roofing
plant, Portland, Oregon.
Plant visit to Bird and Son asphalt roofing
plant, Portland, Oregon.
Plant visit to Flintkote asphalt roofing
plant, Los Angeles, California.
Plant visit to Celotex asphalt roofing plant,
Los Angeles, California.
Plant visit to Johns-Manville asphalt roofing
plant, Los Angeles, California.
Plant visit to Johns-Manville asphalt roofing
plant, Uaukegan, Illinois.
Plant visit to CertainTeed asphalt roofing
plant, Chicago Heights, Illinois.
A-2
-------
Date
November 27, 1974
December 17, 1974
March 10-13, 1975
April 9, 1975
April 22, 1975
May 1, 1975
May 6, 1975
May 13, 1975
May 14, 1975
May 15, 1975
May 15, 1975
May 28, 1975
June 3, 1975
June 4 & 5, 1975
June 12 & 13, 1975
June 17, 1975
Activity
Plant visit to Lloyd A. Fry asphalt roofing
plant; Summit, Illinois.
Plant visit to Celotex asphalt roofing
plant, Cincinnati, Ohio.
Emission test at Celotex asphalt roofing
plant, Goldsboro, North Carolina.
Preliminary model plants submitted to
Economics Analysis Branch (EAB).
Section 114 letters mailed to CertainTeed-
Lloyd A.Fry; GAF; Bird and Son; Celotex;
Flintkote; Johns-Manville; Trumbull; and
Douglas Oil.
Pretest survey of Johns-Manville asphalt roofing
plant, Waukegan, Illinois.
Pretest survey of CertainTeed asphalt roofing
plant, Chicago Heights, Illinois.
Plant visit .to Bird and Son asphalt roofing
plant, Portland, Oregon.
Plant visit to Bird and Son asphalt roofing
plant, Wilmington, California.
Pretest survey of Celotex asphalt roofing
plant, Los Angeles, California.
Pretest survey of Johns-Manville asphalt
roofing plant, Los Angeles, California.
Plant visit to CertainTeed asphalt roofing
plant, Shakopee, Minnesota.
Pretest survey to Elk Roofing asphalt roofing
plant, Stephens, Arkansas.
Pretest survey to Celotex asphalt roofing
plant, Fairfield, Alabama.
Emission test at Celotex asphalt roofing
plant, Cincinnati, Ohio.
Pretest survey of CertainTeed asphalt
roofing plant, Shakopee, Minnesota.
A-3
-------
Date
July 22 & 23, 1975
August 8, 1975
August 18-27, 1975
September 9-13, 1975
September 16-19, 1975
October 6-10, 1975
October 20-24, 1975
February 1, 1977
March 1, 1977, and
March 17, 1977
March 31, 1977
April 1, 1977
April 1, 1977
April 5, 1977
April 5, 1977
April 6, 1977
Activity
Visible emission test conducted at
CertainTeed asphalt roofing plant,
Chicago Heights, Illinois.
Plant visit to Celotex asphalt roofing
plant, Fairfield, Alabama.
Emission tests on asphalt blowing operation
at Elk Roofing, Stephens, Arkansas.
Emission test at CertainTeed asphalt roofing
plant, Shakopee, Minnesota.
Emission test at Johns-Manville asphalt
roofing plant, Waukegan, Illinois.
Emission test at Celotex asphalt roofing
plant, Fairfield, Alabama.
Emission test at Celotex asphalt roofing
plant, Los Angeles, California.
Effort begun to locate additional well-
controlled blowing stills for testing.
Section 114 letters requesting additional
information on asphalt blowing mailed to GAF;
Chevron, USA; Exxon; Jim Walters; Global Oil;
Douglas Oil; and Trumbull Oil.
Plant visit to Lundy-Thagard Oil asphalt
blowing operation, Southgate, California.
Plant visit to Douglas Oil asphalt blowing
operation, Paramount, California.
Plant visit to Hirt Combustion Engineers,
Montebello, California.
Plant visit to Trumbull Asphalt asphalt
blowing operation, Martinez, California.
Plant visit to Global Oil asphalt blowing
operation, Pittsburgh, California.
Plant visit to Chevron, USA, Asphalt
Division, asphalt blowing operation,
Portland, Oregon.
A-4
-------
Date
April, 1977
April, 1978
December 13, 1978
January 18, 1979
January 18, 1979
March 19, 1979
March 23, 1979
March 27, 1979
April 4, 1979
May 1, 1979
November 15, 1979
December 12, 1979
January 10, 1980
Activity
Report. Impact of NSPS on 1985 National Emissions
from Stationary Sources; The Research Council of
New England.
Report. Priorities for NSPS under the
Clean Air Act Amendments of 1977-
Argonne National Laboratory. '
Plant visit to Celotex asphalt roofing
plant, Goldsboro, North Carolina.
Plant visit to GAP asphalt roofing
plant, Kansas City, Missouri.
Plant visit to CertainTeed asphalt roofing
plant, Kansas City, Missouri.
Plant visit to CertainTeed asphalt roofina
plant, Oxford, North Carolina.
Section 114 letters sent to CertainTeed
and Flintkote.
Plant visit to Flintkote asphalt roofing
plant, Peachtree City, Georgia.
Meeting with Owens-Corning Fiberglas Corporation
to discuss status of plants recently acquired from
Lloyd A. Fry, Inc.
Section 114 letter to Owens-Corning Fiberqlas
Corporation.
EPA Working Group.
National Air Pollution Control
Technical Advisory Committee (NAPCTAC).
Meeting with Asphalt Roofing Manufacturers
Association (ARMA) and industry representatives.
February 21, 1980 EPA Steering Committee meeting (consent agenda).
A-5
-------
-------
APPENDIX B
INIJEX TO ENVIRONMENTAL IMPACT CONSIDERATIONS
This appendix consists of a reference system, cross-indexed with
the October 21, 1974 FEDERAL REGISTER (39 FR 37419) containing the Agency
guidelines concerning the preparation of Environmental Impact Statements.
This index can be used to identify sections of the document which contain
data and information germane to any portion of the FEDERAL REGISTER
guidelines.
B-l
-------
Appendix B
CROSS-INDEXED REFERENCE SYSTEM TO HIGHLIGHT
ENVIRONMENTAL IMPACT PORTIONS OF THE DOCUMENT
Agency Guidelines for Preparing
Regulatory Action Environmental
Impact Statements (39 FR 37419)
_____^ : —
1. Background and Description
of Regulatory Alternatives
Summary of Regulatory
Alternatives
Statutory Basis for the
Regulatory Alternatives
Relationship to Other
Regulatory Agency Actions
Industry Affected by the
Regulatory Alternatives
Specific Processes Affected
by the Regulatory
Alternatives
Location Within the Background
Information Document
The regulatory alternatives are
summarized in Chapter 1, Section 1.1.
The statutory basis for the regulatory
alternatives is summarized in Chapter 2.
The relationships between the
regulatory alternatives and other
regulatory agency actions are
summarized in Chapter 8, Section 8.3.
A discussion of the industry
affected by the alternatives is
presented in Chapter 3, Section 3.1.
Further details covering the
business and economic.nature of,the
industry are presented in Chapter 8,
Section 8.1.
The specific processes and facilities
affected by the regulatory alternatives
are summarized in Chapter 1,
Section 1.1. A detailed technical
discussion of the processes
affected by the regulatory alternatives
is presented in Chapter 3,
Section 3.2.
B-2
-------
Appendix B
CROSS-INDEXED REFERENCE SYSTEM TO HIGHLIGHT
ENVIRONMENTAL IMPACT PORTIONS OF THE DOCUMENT
(continued)
Agency Guidelines for Preparing
Regulatory Action Environmental
Impact Statements (39 FR 37419)
Location Within the Background
Information Document
2.
Control Techniques and Regulatory
Alternatives
3.
Control Techniques
Regulatory Alternatives
Environmental Impact of the
Regulatory Alternatives
Primary Impacts Directly
Attributable to the
Alternatives
Secondary or Induced
Impacts
The alternative control techniques
are discussed in Chapter 4,
Sections 4.2 and 4.3.
The various regulatory alternatives
including "no additional regulatory
action" are defined in Chapter 6,
Section 6.2. A summary of the
major alternatives considered is
included in Chapter 1, Section 1.3.
The primary impacts on mass
emissions and ambient air quality
due to the alternative control
systems are discussed in Chapter 7,
sections 7.1, 7.2, 7.3, 7.4, and
7.5. A matrix summarizing the
environmental and economic impacts
of the regulatory alternatives
is included in Chapter 1.
Secondary impacts for the various
regulatory alternatives are
discussed in Chapter 7, Sections 7.1,
7.2, 7.3, 7.4, and 7.5.
B-3
-------
Appendix B
CROSS-INDEXED REFERENCE SYSTEM TO HIGHLIGHT
ENVIRONMENTAL IMPACT PORTIONS OF THE DOCUMENT
(concluded)
Agency Guidelines for Preparing
Regulatory Action Environmental
Impact Statements (39 FR 37419)
4. Other Considerations
Location Within the Background
Information Document
A summary of the potential adverse
environmental impacts associated
with the regulatory alternatives is
included in Chapter 1, Section 1.2
and Chapter 7. Potential socio-
economic and inflationary impacts
are discussed in Chapter 8,
Section 8.5. Irreversible and
irretrievable commitments of
resources are discussed in
Chapter 7, Section 7.6.
B-4
-------
APPENDIX C. SUMMARY OF TEST DATA
C.I INTRODUCTION
The asphalt roofing manufacturing industry was surveyed by EPA
personnel to identify those plants and facilities at which to conduct
tests to evaluate techniques for controlling particulate emissions related
to processes in the asphalt roofing industry. Several plants were selected
and tested for organic particulate emissions. Since many of the mineral
handling and storage operations for limestone, traprock, and mica at
asphalt roofing plants are similar to the screening, conveying, and
storage of mineral products at non-metallic mineral processing plants it
was decided to transfer selected control technology for inorganic parti-
culate from this industry to the asphalt roofing manufacturing industry
This appendix contains emission test data obtained from asphalt roofing
Plants and selected emission test data obtained from non-metallic mineral
processing plants.
C.2 EMISSION TEST PROGRAM FOR MANUFACTURE OF ASPHALT ROOFING
A source testing program was undertaken by EPA personnel to evaluate
techniques for controlling particulate emissions related to processes in
the asphalt roofing manufacturing industry. Plant process facilities
tested included asphalt storage tanks, blowing stills, saturators, and
coaters. These tests included sampling and analyses of particulate
polycyclic organic matter (POM), hydrocarbons (HC), SO,,, NOX, aldehydes,
and CO. In this appendix, the facilities tested and the test methods'
used are identified. The results of emission tests and visible emission
observations, as well as the characteristics of exhaust gas streams, are
summarized in Tables C-l to C-23 and Figures C-l to C-9. The individual
sections of the processing equipment which are controlled and the type of
C-l
-------
control device, or devices, for each plant tested are also discussed
later in this appendix.
Particulate sampling was conducted using the EPA Test Method 26 for
asphalt roofing plants. Outlet gaseous hydrocarbon measurements were
made using a flame-ionization detector (FID) by monitoring the gas sampled
in the EPA Method 26 train at a point between the filter and the first
impinger. Continuous measurements of NOX and S02 concentration levels
were made using a Dynascience* electrochemical S02 analyzer. Total POM
was measured utilizing the EPA Method 26 train in conjunction with a POM
collection column developed by Battelle Columbus Laboratory (BCL). EPA
Reference Method 3 was used for Orsat analysis. Analysis of C0£ and 02
was by Orsat; CO concentration was determined by Nondispersive Infrared
(NDIR) measurements. Determinations of aldehyde concentration were made
utilizing the Los Angeles Wet Chemistry Method.
Visible emission observations were made at the exhaust of each of
the control devices in accordance with procedures recommended in EPA
Reference Method 9 for visual determination of the opacity of emissions
from stationary sources.
Fugitive emissions were read at the points specified in the tables
and figures. An attempt was made to quantify the fugitive emissions by
recording the duration and intensity of the emissions from the sources.
C.2.1 Description of Asphalt Roofing Manufacturing Facilities Tested
C.2.1.1 Facility A. Facility A was operating the shingle
manufacturing line at a production rate of 27.85 Mg/h (30.7 tons/h)
during the emission tests. Emission sources sampled on the shingle
manufacturing line included: dip-type saturator, drying-in drum section,
wet looper, and coater. All of these sources were ducted via a manifold
to two modular electrostatic precipitators (ESP).
Visible emissions were observed at the exhaust of each of the two
ESP stacks. Fugitive emissions were observed at the saturator section,
at the drying-in drum section, and at the coating section of the production
Mention of a specific company or product does not constitute endorsement
by the United States Environmental Protection Agency.
C-2
-------
line. Participates, HC, and POM were measured at the inlet and outlet of
the ESP's.
The results of the emission tests at Facility A are contained in
Figure C-l and in Tables C-l to C-3a.
C.2.1.2 Facility B. The production rate of the shingle manufacturing
line at Facility B was 37.0 Mg/h (40.8 tons/h) during the emission test
program. Emission sources sampled on the shingle manufacturing line at
Facility B included the dip-type saturator, drying-in section, and coater
All of the sources were controlled by two afterburner units. One of
these units (Unit 2) also controlled emissions from a surge tank and six
asphalt storage tanks.
Visible emissions were recorded for each of the two afterburner
outlet stacks, and fugitive emissions escaping the capture hoods were
recorded for the saturator area of the asphalt production line. Emissions
were measured for particulates, HC, gas composition, NO,, SO,, aldehydes
and POM. x 2
Results of the emission tests at Facility B are given in Figure C-2
and in Tables C-4 to C-9.
C.2.1.3 Facility C. The shingle production rate at Facility C
during the emission tests was 26.31 Mg/h (29.0 tons/h). Emission sources
tested were the spray-dip saturator, drying-in section, wet looper, and
the coater. All of these sources were controlled by a high velocity air
filtration (HVAF) unit. The same HVAF unit also controlled emissions
from the main asphalt storage tank and seven process storage tanks.
Visible emissions were observed and recorded at the filter outlet
stack discharge. Fugitive emissions were observed around the saturator
capture hoods and around the HVAF inlet ductwork. Half of the saturator
readings were made at the spray-dip portion and the other half at the
strike-in/coater section.
Other tests made at the inlet and outlet of the filter unit included
particulate, gaseous hydrocarbon, POM, and SO
The results of the emission tests at Facility C are given in
Figures C-3 to C-7 and in Tables C-10 to C-14.
C-3
-------
C.2.1.4 Facility D. The shingle manufacturing line at Facility D
was operating at a production rate of 43.27 Mg/h (47.7 tons/h) during the
emission tests. The emission sources sampled were the dip-type saturator,
the drying-in section, and the wet looper. Emissions from these sources
were controlled by an HVAF.
The visible emissions were recorded at the asphalt truck unloading
area and at the HVAF outlet stack. Fugitive emissions were recorded at
each end of the saturator capture hoods. Emission tests were also conducted
to determine particulate and gaseous hydrocarbon levels.
The results of the emission tests at Facility D are contained in
Figure C-8 and in Tables C-15 and C-16.
C.2.1.5 Facility E. The emission sources sampled at Facility E
were two asphalt blowing (or oxidation) stills with a blowing capacity of
36.34 m3 (9,600 gal) each. The blowing durations were 1-1/2 hours for
saturant blows and 4-1/2 hours for coating blows. Each still was equipped
with a knock-out chamber, and one afterburner was used for controlling
emissions from the stills.
Visible emission observations were recorded at the afterburner stack
by two observers. Emissions were also measured for particulates, HC,
NOX, S02, aldehydes, and POM.
The results of the emission testing program at Facility E are
contained in Figures C-9 and in Tables C-17 to C-22a.
C.2.1.6 Facility F. Emission tests were conducted at Facility F to
determine the opacity of stack emissions from the mist eliminator that
controlled emissions from the asphalt storage systems. Two main storage
tanks, one flux tank, and four work tanks were ducted to the same mist
eliminator.
Visible emission tests were made of the exhaust stack effluent from
the mist eliminator. The results are contained in Table C-23.
C.3 EMISSION TEST PROGRAM FOR SELECTED NON-METALLIC MINERAL PROCESSES
A source testing program was undertaken by EPA to evaluate
techniques available for controlling particulate emissions from non-
metallic mineral plant process facilities, including screens and material
handling operations, especially conveyor transfer points. This appendix
describes the facilities tested (their operating conditions and
C-4
-------
characteristics of exhaust gas streams) and summarizes the results of the
particulate emission tests and visible emission observations.
Five baghouse collectors controlling process facilities at five
crushed stone installations (two limestone, one mica, and two traprock)
were tested using EPA Reference Method 5, except as noted in the facility
descriptions, for determination of particulate matter from stationary
sources. The results are summarized in Tables C-24 to C-32.
Fugitive and visible emission observations were made in accordance
with procedures recommended in EPA Reference Method 9 for visual deter-
mination of the opacity of emissions from stationary sources. Visible
emission observations were made at the exhaust of each control device and
fugitive emission observations at hoods and collection points for process
facilities. The data are presented in terms of percent of time equal to
or greater than a given opacity.
C'3'1 Description of Selected Non-Metallic Mineral Process Facilities
Tested
C.3.1.1 Facility G. The production unit sampled at Facility G was
the conveyor transfer point at the tail of an overland conveyor for
crushed limestone. The conveyor had a 227-kg/s (900-tons/h) capacity
using a 76.2-cm (30-inch) belt at a speed of 3.6 m/s (700 ft/s). The
transfer point was enclosed, and emissions were vented to a small baghouse
unit for collection. Three particulate sampling tests were conducted.
Visible emission observations were made at the baghouse outlet and at the
transfer point. The results are given in Table C-24.
C.3.1.2 Facility H. At Facility H the production units sampled
were two three-deck vibrating screens. These screens, used for the final
sizing of limestone, were operated at a rate of 31.5 kg/s (125 tons/h).
Particulate emissions collected from the top of both screens, at the feed
to both screens, and at both the head and tail of a shuttle conveyor
between the screens were vented to a mechanical shaker-type baghouse.
The results are given in Table C-25.
C.3.1.3 Facility J. The finishing screen for traprock at Facility J
was totally enclosed and was operated at a rate of 63 kg/s (250 tons/h).
Emissions collected from the top of the screen enclosure, from all screen
C-5
-------
discharge points, and from several conveyor transfer points were vented
to a fabric filter. The results are given in Table C-26.
C.3.1.4 Facility K. Five screens used for final sizing of traprock,
and eight storage bins were tested at Facility K. This facility processed
traprock at a rate of 94.5 kg/s (375 tons/h). All screens and bins were
totally enclosed, and emissions were vented to a jet pulse-type baghouse
for collection. The results are given in Table C-27.
C.3.1.5 Facility L. The bagging operation used to package ground
mica was sampled at Facility L. Particulate emissions were controlled by
a baghouse. Fugitive emission observations were made at the capture
point. The results are given in Table C-28.
C-6
-------
TP ]
Electrostatic
Precipitator
Module 2
Electrostatic
Precipitator
Module 1
IV
TP2
Figure C-l. Schematic of ducting arrangement
and test points (TP)—Plant A.
C-7
-------
TABLE C-l. VISIBLE EMISSIONS COMPOSITE SUMMARIES-PLANT A
OCTOBER 7, 1975
>-
I—
t—<
O
O
I—
LU
LU
O.
40
30
10
TIME—HOURS
OUTLET STACK TP-2, OBSERVERS 1 AND 2
40'
30
o.
o
UJ
D-
10
1
TIME—HOURS
OUTLET STACK TP-3, OBSERVERS 1 AND 2
C-8
-------
TABLE C-l.
VISIBLE EMISSIONS COMPOSITE SUMMARIES-PLANT A
OCTOBER 8, 1975
(continued)
TIME—HOURS
SATURATOR HOOD, OBSERVERS 1 AND 2
>-
(—I
O
Q.
O
LIJ 20
LU
D.
1 . 2 3
TIME—HOURS
OUTLET STACKS TP-2 AND TP-3, OBSERVERS 1, 2, AND 3
C-9
-------
TABLE C-l VISIBLE EMISSIONS COMPOSITE SUMMARIES-PLANT A
OCTOBER 9, 1975
(continued)
40-
>-
»-H
< 30 -
D-
O
t-
UJ 20 -
£
UJ
a.
10 •
—
—
TIME—HOURS
OUTLET STACK TP-3, OBSERVERS .1 AND 3
40
30
S 20
UJ
Q.
10
TIME—HOURS
OUTLET STACK TP-2, OBSERVERS 2 AND 4
C-10
-------
TABLE C-l. VISIBLE EMISSIONS COMPOSITE SUMMARIES—PLANT A
OCTOBER 9, 1975
(concluded)
>-
I—
I—I
o
o
UJ
o
LU
Q-
2 3
TIME—HOURS
SATURATOR HOOD, OBSERVERS 1 AND 2
>-
I—
I—I
o
o
LU
C_3
UJ
Q.
TIME—HOURS
OUTLET STACKS TP-2 AND TP-3, OBSERVERS 3 AND 4
C-ll
-------
m cj r»» «— no*— co
0 O 0 •— 0
cn o o oo o
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Cs C3 C3 O
o
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tn CJ to oj
in r-
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CQ I
o::
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a i
r- CXJ CM
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us m o
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C-13
-------
TABLE C-3. PARTICULATE POLYCYCLIC ORGANIC MATTER CONCENTRATION
AND EMISSION DATA SUMMARY—PLANT A
(OCTOBER 9, 1975) '
(METRIC)
Sampling location
Volume of gas sampled—Urn3
Percent moisture by volume
Average stack temperature— -°C
Stack volumetric flow rate--
Inlet
(TP-1)
2.25
2.1
58.3
12.47
(Sampled stack)
Outlet (TP-3)
2.81
2.2
58.9
5.67
Outlet (TP-2)3
estimated value
—
2.2
58.9
6.07
Combined total
flow conditions
for outlet stacks
. —
2.2
58.9
11.74
NmVsc -
Stack volumetric flow rate— 14.45
Percent isokinetic 106.7
6.57
99.7
7.05
13.62
Particulate— POM
Sampling location
Comoonent
Anthracene/Phenanthrene
Methyl anthracenes
Fluroanthene
Pyrene
Methyl pyrene/Fl uoranthene
Benzo(c)phenanthrene
Chrysene/Benz(a)anthracene
Methyl chrysenes
Benzo fluoranthenes
Benz(a)pyrene )
Benz(e)pyrene )
Totals
Collection efficiency, percent
PP.
Inlet
51.2
181.8
0.950
7.40
4.00
0.350
8.30
21.8
5.30
13.5
294.6
~
Concentration
kq/msx!0-9
Outlet
44.8
102.2
6.25
2.90
20.9
Not
detected
0.700
0.350
0.350
0.900
179.4
Inlet
22.70
80.55
0.41
3.27
1.78
0.156
3.68
9.66
2.36
6.00
(13.07)
—
Outlet
15.90
36.16
2.22
1.03
7.41
NDe
0.25
0.12
0.12
0.32
(6.36)
Emission rate kq/sxlO-7
Outlet
Inlet (TP-2+TP-3)3
2.83
10.04
0.05
0.40
0.23
0.02
0.45
1.21
0.29
0.74
16.25
54.1
1.86
4.25
0.26
0.12
0.87
ND
0.029
0.015
0.015
0.04
7.46
aAverage Nm3 at TP-2 outlet stack during four particulate tests was 6.6 percent higher than flow
from TP-3 stack. m3/s was 6.9 percent higher. These values were used to estimate total outlet
Jlow.
i I IUW.
Kormal cubic meters at 21.1°C, 101.7xl03 Pa.
^Normal cubic meters per second at 21.1°C, 101.7xl03 Pa.
Actual cubic meters per second.
,ND=No data.
•tiw—nu ua ia.
Benz(a)pyrene and Benz(e)pyrene analysis combined and reported as one value.
C-14
-------
TABLE C-3a.
PARTICULATE POLYCYCLIC ORGANIC MATTER CONCENTRATION
AND EMISSION DATA SUMMARY—PLANT A
(OCTOBER 9, 1975)
(ENGLISH)
; _j ', •
Sampling location
Volume of gas sampled— DSCFb
Percent moisture by volume
Average stack temperature— °F
Stack volumetric flow rate—
DSCFMC
Stack volumetric flow rate—
acfm
Percent isokinetic
Inlet
(TP-1)
79.48
2.1
137
26,416
30,625
106.7
(Sampled stack)
Outlet CTP-3)
.
99.30
2.2
138
12,009
13,914
99.7
Outlet (TP-2)a
estimated value
__
2.2
138
12,858
14,946
Combined total
flow conditions
for outlet stacks
2.2
138
24,867
28,860
Participate— POM
Sampling location
Component
Anthracene/Phenanthrene
Methyl anthracenes
Fluroanthene
Pyrene
Methyl pyrene/Fluoranthene
Benzo(c)phenanthrene
Chrysene/Benz(a)anthracene
Methyl chrysenes
Benzo fluoranthenes
Benz(a)pyrenef )
Benz(e)pyrene [
Totals
up
Inlet
51.2
181.8
0.950
7.40
4.00
0.350
8.30
21.8
5.30
13.5
294.6
Outlet
44.8
102.2
6.25
2.90
20.9
Not
detected
0.700
0.350
0.350
0.900
179.4
Concentration
(qr/DSCFxlO-6)
inlet Outlet
9.92
35.2
0.18
1.43
0.78
0.068
1.61
4.22
1.03
2.62
5.71xlO-6
6.95
15.8
0.97
0.45
3.24
NDe
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0.054
0.054
0.14
2. 78x1 O-6
Collection efficiency, percent
Emission rate
(Ib/hxlO-3)
Outlet
Inlet (TP-2+TP-3)3
2.25
7.97
0.04
0.32
0. 18
0.015
0.36
0.96
0.23
0.59
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54.
1.48
q 07
o. j /
n 71
U. £. \
0.096
0. 69
ND
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0.012
0.012
0.030
5.92x10-3
1
flow.
W3S
_ four particulate tests was 6.6 percent higher than
percent higher. These values were used to estimate total outlet
C0ry standard cubic feet at 70°F, 29.92 in. Hg
dDry standard cubic feet per minute at 70°F 29 92 in Ha
Actual cubic feet per minute. '
fND=No data.
Benz(a)Pyrene and Benz(e)Pyrene analysis combined and reported as one value.
C-15
-------
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Afterburner
TP5
Afterburner
lTP6
Recovery
oil drain
TP3
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(g)TP6
j Recovery
i oil drain
nlet
Saturator and Coater Enclosure
Figure C-2. Block diagram showing relative locations
of process components and sample points—Plant B.
C-16
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TABLE C-9. NO RESULTS—PLANT B
Sampl i ng
location
TP-1, inlet
TP-2, outlet
TP-2, outlet
TP-2, outlet
TP-3, inlet
TP-4, outlet
Time
Date
9-12-75
9-12-75
9-12-75
9-12-75
9-12-75
9-12-75
of sampling
Hour
1810-1820
1645-1700
1730-1745
1815-1830
a.m.
1850-1905
NO , ppm
0
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Analysis method:
cell analyzer.
Grab samples analyzed by electrochemical
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TABLE C-ll.
POLYCYCLIC ORGANIC MATTER (POM) EMISSION TESTS SUMMARY-
PLANT C
(HAVF CONTROL DEVICE)
(METRIC)
Run number
Date
Volume of gas sampled— Nmsa
Percent moisture by volume
Average stack temperature— °C
Stack volumetric flow rate—
Nm3/sC
Stack volumetric flow rate—
ms/s
Percent isokinetic
Polycyclic organic matter
Component
Anthracene/Phenanthrene
Methyl anthracenes
Fluoranthene
Pyrene
Methyl pyrene/Fluoranthene
Benzo(c)phenanthrene
Cyrysene/Benz(a)anthracene
Methyl cyrysenes
Benzo fluoranthenes
Benz(a)pyrene
Benz(e)pyrene
Perylene
3-Methy 1 chol anthrene
TOTALS i—
% POM reduction =91.1
Inlet
CEL-5P
10/23/75
1.68
1.26
53.9
9.06
10.34
95.8
Concentration
kq/Nm3x!0-9
In
254
668
1 3
48,
125
12
25
72
0.
0.
0.
2.
3.
-------
TABLE C-lla.
POLYCYCLIC ORGANIC MATTER (POM) EMISSION TESTS SUMMARY-
PLANT C
(HAVF CONTROL DEVICE)
(ENGLISH)
Run number
Date
Inlet
CEL-5P
10/23/75
Outlet
CEL-6P
10/23/75
Volume of gas sampled—DSCF
Percent moisture by volume
Average stack temperature—°F
Stack volumetric flow rate—
DSCFMC
Stack volumetric flow rate—
acfm
Percent isokinetic
59.167
1.26
129
19,200
21,900
95.8
125.605
0.09°
125
20,500
23,100
92.1
Concentration
Emission rate
_3
Polycyclic organic matter
Component
Anthracene/Phenanthrene
Methyl anthracenes
Fluoranthene
Pyrene
Methyl pyrene/Fluoranthene
Benzo(c)phenanthrene
Cyrysene/Benz(a)anthracene
Methyl cyrysenes
Benzo fluoranthenes
Benz(a)pyrene
Benz(e)pyrene
Perylene
3-Methyl chol anthrene
TOTALS
% POM reduction =91.1
g
r/DSC
Inlet
111
292
6.
21
54.
5.
11.
31.
0.
0.
0.
1.
1.
536
Fxlf
}_b
II
b/nxiu
Outlet inlet
15.
00
3
6
22
1
6
274
0183
0313
19
57
21.
0.
0.
6.
Not
0.
0.
0.
Not
Not
2
0
307
786
95
detected
203
227
0921
0.123s
detected
detected
44.
9
18.
48.
0.
3.
8.
0.
1.
5.
0.
0.
0.
0.
0.
88.
3
987
51
98
859
82
20
0451
00301
00515
196
258
3
\-°
Outlet
2.
.
0.
0.
1.
Not
0.
0.
0.
0.
Not
Not
/.
67
CO
by
0539
138
22
detected
0357
0399
0162
021 6e
detected
detected
89
®Dry standard cubic feet at 68°F, 29.92 in. Hg.
bSilica gel observed to be saturated during cleanup at end of run.
^Dry standard cubic feet per minute at 68°F, 29.92 in. Hg.
Actual cubic feet per minute.
eBenz(a)pyrene and Benz(e)pyrene combined and reported as one value.
C-34
-------
TABLE C-12.
TOTAL HYDROCARBON EMISSION TESTS SUMMARY-PLANT C
(HVAF CONTROL DEVICE)
(METRIC) -
Average total hydrocarbon concentration
Date
10/21/75
10/22/75
10/24/75
inlet Outlet Inlet
91 133
120 125
131 134
0.062
0.082
0.089
111 A 1 U
Outlet
0.091
0.086
0.095
gr/uSGF
inlet Outlet
0.0272
0.0359
0.0387
0.0396
0.0375
0.0413
.(ENGLISH)
Date
10/21/75
10/22/75
10/24/75
Inlet
53.80
70.18
77.74
Average total
Jcg/sxlO-3
Outlet
82.91
79.76
88.70
hydrocarbon
Inlet
4.27
5.57
6.17
emission rate
Ib/h
Outlet
6.58
6.33
7.04
C-35
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C-37
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SP-2
v OUTLET
SP-1
INLET
NO. 1 SHINGLE
LINE
SATURATOR
DEMISTER
HVAF.
X SP-3
Figure C-8. Block diagram showing
sampling locations—Plant D.
C-38
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C-40
-------
TABLE C-16. PARTICULATE AND GASEOUS HYDROCARBON RESULTS OF
SHINGLE LINE SATURATOR HVAF FILTER SYSTEM
PLANT D
Run 1
SPI-1 SP2-1
Particulate Results3
Front half train, 240.6 39.0
TCE wash — mg
Front half train, 4.0 2.8
acetone wash — mg
Pref liter, TCE wash— mg 1.1
Glass fiber filter 322.4 31 2
catch— mg
Total front half— mg . 568.1 73.0
Concentration— kg/Nm3xlO-3 0.213 0 027
Concentration— gr/DSCF 0.093 0.012
Particulate emission rate:
kg/sxlO-< 28 3 35
kg/Mg — 1_
Ib/h 22.4 2 9
Ib/ton — .I
Collection efficiency— % 87.1
Gaseous hydrocarbon results
Minimum value — ppm — 38 o
Maximum value— ppm — 74 3
Weighted average value--ppm -- 53.3
Concentration--kg/Nm3xlO-3 — ' 0.039
Concentration—gr/DSCF — 0.017
Hydrocarbon emission rate:
kg/sxlO-11 — 5.4
Ib/h — 4'27
Production rates
-
a, , . , . . . _
- - -
Run 2 R,,71 " '.
SP1-2 SP2-2 SFF3 SP-TT Average
"^ Jr£ j iP"~ 1 ^P— 7
" " ' • ^—
29'2 49'9 27.1 27.^7 98.97 38.87
19 1 Q •, «
K9 " 1-0 2.53 1.90
09 — n it • -
O-4 — 0.80
264.0 39.9 sTi.s 50 5 2gg 3Q 4Q ^
296.0 91.7 340.7 ;79.2 401.60 81.30
0-105 0.034 0.117 0.030 0.145 0.030
0-046 0.015 0.051 ,0.013 0.0633 n.0133
"if 4'7 15-6 4.4 19.2 4.2
n o i~i i? /i '"-,~~ °-16 °-035
"•° 3'7 12-4 3.5 15.27 3.37
0.320 0.071
,_
bfa-4 71.8 77.9
45'° ~ 47-0 — 43.3
76.4 - 67.4 ._ 727
c •
•' "" 59-3 — 60.8
0.043 - 0.039 - 0.041
O-019 " 0.017 - 0.018
" 6'° " 5.7 - 5.7
4.50 — 4.57
43.3 Mg/h (47.7 tons/hi
Weights are minus blanks.
C-41
-------
\
/
TP-2
HEAT
EXCHANGER
AFTERBURNER
RECOVERY
OIL
s\
TP-1
Figure C-9. Block diagram showing relative locations
of process components and sample points—Plant E.
C-42
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C-49
-------
TABLE C-21. S02 AND NOx READINGS BY CONTINUOUS
MONITORING ANALYSIS—PLANT Ed
Inlet
Outlet
Sulfur dioxide
Saturant blow:
Run
Range, ppm
Mean, ppm
Coating blow:
Run
Range, ppm
Mean, ppm
B-llDr
<400-730C
fl
B-ll'
<400-920C
NAd
B-10e
0-350
141
B-10
46-330
166
Nitrogen oxides^
Saturant blow:
Run
Range, ppm
Mean, ppm
B-9
0-1,600
902
B-12
245-500
391
Coating blow:
Run
Range, ppm
Mean, ppm
B-9
60-1,900
814
B-12f
50-435
260
aS02 data are from EnviroMetrics analyzer; NOX data are from DynaScience
.analyzer.
bData taken during a portion of a coating blow representing last
10 minutes of saturant blow.
Calibration gas cylinders empty at end of run and, thus, analyzer
.calibration could not be verified.
Mean values not available as complete blow was not sampled.
eData taken during saturant blow proceeding coating blow for which B-10
-particulate samples were collected.
TThis coating blow did not appear normal as flow was stopped during the
process.
9No S02 scrubber was used ahead of the analyzer used to make the NOX
measurements. Thus, they may contain a contribution due to the S02,
as well as NOX-
C-50
-------
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C-53
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TABLE C-24. SUMMARY OF VISIBLE EMISSIONS—PLANT G
Date: 6/11/74
Type of plant: Crushed stone—conveyor transfer point
Type of discharge: Stack
Distance from observer to discharge point: 18.3 m (60 ft)
Location of discharge: Baghouse
Height of observation point: Ground-level
Height of point of discharge: 2.44 m (8 ft)
Direction of observer from discharge point: North
Description of background: Grey apparatus
Description of sky:
Wind direction:
Wind velocity:
Color of plume:
Detached plume:
Duration of observation:
Clear
Westerly
0 to 4.47 m/s (0 to 10 mi/h)
None
No
240 minutes
Summary of Average Opacity
Time
Set number
Start
End
Sum
Opacity
Average
1 through 30 10:40 1:40 0 0
31 through 40 1:45 4:45 0 0
Readings were 0 percent opacity during all periods of observation.
C-54
-------
TABLE C-25. SUMMARY OF VISIBLE EMISSIONS-PLANT H
Date: 11/21/74
Type of plant: Crushed stone—finishing screens
Type of discharge: Stack
Distance from observer to discharge point: 61 m (200 ft)
Location of discharge: Baghouse
Height of observation point: 15.2 m (50 ft)
Height of point of discharge: 12.2 m (40 ft)
Direction of observer from discharge point: Northwest
Description of background: Dark woods
Description of sky:
Wind direction:
Wind velocity:
Color of plume:
Detached plume:
Duration of observation:
Overcast
Easterly
4.47 to 13.4 m/s (10 to 30 mi/h)
White
No
240 minutes
Set number
Summary of Average Opacity
Time
Start
End
Sum
Opacity
Average
1 through 40 12:10 4:10 0 0
Readings were 0 percent opacity during all periods of observation.
C-55
-------
TABLE C-26. SUMMARY OF VISIBLE EMISSIONS—PLANT J
Date: 9/18/74
Type of plant: Crushed stone—finishing screens
Type of discharge: Stack
Distance from observer to discharge point: 91.44 m (300 ft)
Location of discharge: Baghouse
Height of observation point: 12.2 m (40 ft)
Height of point of discharge: 17.76 m (55 ft)
Direction of observer from discharge point: North
Description of background: Trees
Description of sky:
Wind direction:
Wind velocity:
Color of plume:
Detached plume:
Duration of observation:
Clear
Northerly
2.235 to 4.47 m/s (5 to 10 mi/h)
None
No
240 minutes
Summary of Average Opacity
Time
Set number
Start
End
Sum
Opacity
Average
1 through 40 8:10 12:30 0 0
Readings were 0 percent opacity during all periods of observation.
C-56
-------
TABLE C-27. SUMMARY OF VISIBLE EMISSIONS—PLANT K
Date: 11/16/74-11/19/74
Type of plant: Crushed stone—finishing screens and bins
Type of discharge: Stack
Distance from observer to discharge point: 36.58 m (120 ft)
Location of discharge: Baghouse
Height of observation point: Ground-Level
Height of point of discharge: 0.15 m (0.5 ft)
Direction of observer from discharge point: South
Description of background: Hillside
Description of sky:
Wind direction:
Wind velocity:
Color of plume:
Detached plume:
Duration of observation:
Clear
Westerly
0.894 to 4.47 m/s (2 to 10 mi/h)
None
No
11/19/74: 120 minutes; 11/19/74: 60 minutes
Summary of Average Opacity
Time
Set number
11/18/74:
11/19/74
1
1 1
21
through
through
through
10
20
30
Start
12:
1:
9:
50
50
05
End
1:
2:
10:
50
00
05
Sum
0
o
0
Average
0
n
0
Readings were 0 percent opacity during all periods of observation.
C-57
-------
TABLE C-28.' SUMMARY OF VISIBLE EMISSIONS—PLANT L
Date: 9/30/76
Type of plant: Mica
Type of discharge: Fugitive
Distance from observer to discharge point: 2.13 m (7 ft)
Location of discharge: Bagging operation
Height of observation point: Ground-level
Height of point of discharge: 0.91 m (3 ft)
Direction of observer from discharge point: N/A
Description of background: Indoors
Description of sky:
Wind direction:
Wind velocity:
Color of plume:
Detached plume:
Duration of observation:
Opacity,
percent
5
10
15
20
25
N/A
N/A
N/A
N/A
N/A
1 hour
Summary of Data
Total time equal to or
greater than given opacity
Min. Sec.
0
0
0
0
0
0
0
0
0
0
C-58
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APPENDIX D. EMISSION MEASUREMENT AND
CONTINUOUS MONITORING
D.I EMISSION MEASUREMENT METHODS
Particulate pollutants in the fonn of organic solids and oils are
generated in the manufacture of asphalt roofing products. Reference
Method 26 was developed to measure these emissions using Reference
Method 5 as a base, and then making modifications suitable for collecting
the singular type of particulate emission.
Method development tests and emission measurements were conducted at
seven asphalt roofing plants. These studies resulted not only in
obtaining measurements of particulate emissions, but also in developing a
particulate sampling procedure, Reference Method 26, for isokinetic
collection of representative particulate samples and determination of the
particulate emission concentration. Reference Method 26 is basically a
modification of Reference Method 5. The major differences between the
two methods include:
1. Change in filtration temperature from 120°C to 40°C (248°F to
104°F).
The physical state of organic matter is a function of temperature.
Therefore, it is necessary to select a filtration temperature that
provides a consistent basis for evaluating the different control systems
and the emissions from different plants. The 40°C (104°F) upper limit
was selected to be consistent with the optimum operating temperature of
40°C (104°F) for the collection systems, i.e. filtration and electro-
static precipitation.
2. Use of a precollector filter to reduce the oil droplet loading
on the primary filter.
This change was necessary to prevent oil from seeping through the
glass-fiber filter mat during periods of high droplet concentrations. A
D-l
-------
procedure to avoid the necessity of quantitatively removing the oil from
the precollector was added to the method. This procedure involves
weighing the precollector system before and after sampling to obtain the
mass collected by difference. Use of this precollector is optional in
Reference Method 26 and is intended for use when sampling emissions from
the blowing still control device.
3. Change in cleanup reagent from acetone to 1,1,1-trichloroethane.
Sample cleanup and recovery procedures were also developed and
tested during the method development program. Various solvents were
used, e.g., acetone, chloroform, hexane, 1,1,1-trichloroethane,- diethyl
ether, methylene chloride, and trichloroethylene. The chlorinated hydro-
carbons proved to be the most effective solvents. Chloroform and methylene
chloride were rejected as unsafe due to the toxic chemical exposure
criteria established by OSHA. The solvent, 1,1,1-trichloroethane (TCE)
was decided upon because it was most effective in dissolving the baked-on
oil and tars and, due to its lower vapor pressure, was potentially less
toxic than the other solvents.
4. Change in analytical procedure to minimize sample loss through
evaporation.
In the laboratory the cleanup reagent presented some problems. The
low vapor pressure of TCE caused an increase in the time necessary to
evaporate the samples at ambient temperature to a final weight. Experi-
ments were conducted to quantify the loss of light hydrocarbons by
condensing the vapors from the evaporation process and analyzing them by
gas chromatography. Results showed that the hydrocarbon loss for outlet
sample fractions was minimal.
A continuous weight loss was recorded for the samples over a period
of several weeks after removal of the condenser. The weight loss was
most significant for inlet samples. The outlet samples also continued to
lose weight, but to a lesser degree. Consequently, the criterion of
"constant weight" was defined as "a less than 10 percent or 2 mg (which-
ever is greater) mass change between two sequential weighings twenty-four
hours apart." Most samples weighed in this manner reached a constant
weight between-the 24 to 48 hour weighings.
D-2
-------
5. Collection and analytical procedure for condensed water.
In cases where moisture contents of the stack gases were above
10 percent, condensation in the filtration section of the sample train
occurred. These conditions did not happen when sampling saturator line
emissions, but did occur during the blowing still tests. By cooling the
sample gas to 40°C (104°F) in the probe and precollector cyclone, the
moisture was trapped in the cyclone collection flask. In the analyses,
the oil was extracted from the water phase using a separatory funnel and
TCE. The remaining water fraction was evaporated at 100°C (212°F),
desiccated, and weighed.
D-l.l Other Emission Test Procedures
Previous investigators used test methods which differed from the EPA
approach. These methods, e.g., LAAPCD and conventional Method 5 including
impinger analysis, measured both filterable and condensible hydrocarbons
as particulate: The gaseous hydrocarbons were measured by flame ioni-
zation analysis; the sample gas, however, was taken directly from the
stack. The gases were neither filtered nor cooled to 40°C (104°F). In
some cases the data gave similar emission rates. In other cases, large
differences occurred. Since EPA did not conduct comparative tests, it
cannot be determined if these differences were due to process operating
conditions or to differences in the test methods.
Visible emissions were measured by Method 9. Fugitive emissions
were measured by Method 22.
D.2 CONTINUOUS MONITORING
The transmissometer is not ideally suited to the measurement of
opacity in the effluent gas stream from an asphalt roofing plant. The
effects of variable stack gas temperatures can cause the readings of the
transmissometer to lack any correlation with Reference Method 9 measure-
ments. For example, by increasing the stack temperature, the oil droplets
that cause the visible emissions will be converted into a gas which would
not be detected by the transmissometer but which .will recondense and be
visible in the atmosphere. Depending on stack temperature at the
measurement point, the transmissometer may be a useful tool for monitoring
operation and maintenance.
D-3
-------
D.3 PERFORMANCE TEST METHODS
Performance Test Method 26, which is recommended for the measurement
of participate emissions from asphalt roofing processes, is essentially
a modification of Reference Method 5. Changes were made in the sample
filtration temperature and in the cleanup and analysis. The procedure is
sufficiently similar to Method 5 so that test personnel experienced with
Method 5 should have little difficulty with Method 26.
The asphalt roofing industry has two major processes, each with
peculiar problems which hamper the performance of the emission test. The
asphalt saturator line is a continuous process, subject to numerous line
speed fluctuations and stoppages, thus making coordination of testing
with the process essential. Extra care must be used to maintain the
sample intergrity during these times.
The blowing still facility is a batch process. The process may last
several hours. Emissions, flow rates, moisture contents, and temperatures
are a function of time. Careful attention is required to ensure that the
sample collected is representative of the emission and the process as
defined in the regulation.
Sampling costs for a test consisting of three Method 26 runs is
estimated to be about $8,000 to $12,000. If in-plant personnel are used
to conduct the tests, the costs will be somewhat less.
Method 9 is recommended for measurement of opacity from stacks and
similarly confined emission sources. Method 22 is recommended for ths
determination of the frequency of visible fugitive emissions produced
during material processing, handling, and transfer operations.
D-4
-------
TECHNICAL REPORT DATA
(Mease read Instructions on the reverse before completing!
1. REPORT NO.
EPA-450/3-80-021a
3. RECIPIENT'S ACCESSION NO.
4. TITLE AND SUBTITLE
Asphalt Roofing Manufacturing Industry -
Background Information for Proposed Standards
5. REPORT DATE
June 1980
6. PERFORMING ORGANIZATION CODE
7. AUTHOR(S)
8. PERFORMING ORGANIZATION REPORT NO.
9. PERFORMING ORGANIZATION NAME AND ADDRESS
Office of Air Quality Planning and Standards
U.S. Environmental Protection Agency
Research Triangle Park, North Carolina 27711
10. PROGRAM ELEMENT NO.
11. CONTRACT/GRANT NO.
68-02-3059
12. SPONSORING AGENCY NAME AND ADDRESS
DAA for Air Quality Planning and Standards
Office of Air, Noise, and Radiation
U.S. Environmental Protection Agency
Research Triangle Park, North Carolina 27711
13. TYPE OF REPORT AND PERIOD COVERED
Final
14. SPONSORING AGENCY CODE
EPA/200/04
15. SUPPLEMENTARY NOTES
This report discusses the proposed new source performance standards and
the resulting environmental and economic impacts.
16. ABSTRACT
Standards of Performance for the control of emissions,from the asphalt roofing
manufacturing industry are being proposed under Section 111 of the Clean Air Act.
These standards would apply only to saturators, blowing stills, storage tanks, and
mineral handling and storage operations in asphalt roofing plants, and blowing stills
and storage tanks in oil refineries and asphalt processing plants. This document
contains background information and environmental and economic impact assessments of
the regulatory alternatives considered in developing proposed standards.
7.
KEY WORDS AND DOCUMENT ANALYSIS
DESCRIPTORS
b.lDENTIFIERS/OPEN ENDED TERMS C. COSATI Field/Group
Air Pollution
Pollution Control
Standards of Performance
Asphalt Roofing Manufacturing
New Source Performance Standards
Particulates
Air Pollution Control
13b
8. DISTR BUTION STATEMENT
Unlimited
19. SECURITY CLASS (ThisReport)
Unclassified
21. NO. OF PAGES
398
20. SECURITY CLASS (This page)
Unclassified
22. PRICE
EPA Form 2220 — 1 (Rev. 4—77) PREVIOUS EDITION is OBSOLETE
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