United States      Office of Air Quality        EPA-450/3-87-006
Environmental Protection  Planning and Standards      April 1987
Agency         Research Triangle Park NC 27711

Air
Survey of New
Industrial Boiler
Projects —
1981-1984

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                                       EPA-450/3-87-006
         Survey of  New
Industrial Boiler Projects —
          1981  - 1984
        Emission Standards and Engineering Division
           U.S. Environmental Protection Agency
              Office of Air and Radiation
         Office of Air Quality Planning and Standards
            Research Triangle Park NC 27711

                   April 1987

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This report has been reviewed by the Emission Standards and Engineering Division of the Office
of Air Quality Planning and Standards, EPA, and approved for publication. Mention of trade
names or commercial products is not intended to constitute endorsement or recommendation
for use. Copies of this report are available through the Library Services Office (MD-35), U.S.
Environmental Protection Agency, Research Triangle Park NC 27711, or from National Technical
Information Services, 5285 Port Royal Road, Springfield VA 22161.

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                              TABLE OF CONTENTS


                                                                      Page
Section


LIST OF TABLES	1V

EXECUTIVE SUMMARY	  V


                                                          	  1
  1.0     INTRODUCTION ...............................................


                                                                        l
  2.0     COLLECTION OF DATA
          Description of the Survey Form
          Development of the Mailing List
          Data Management  Procedures
           Description  of All  Projectsjurveyed	   3
3.0     DESCRIPTION OF NEW BOILER PROJECTS ..........................  3

        Description of All Projects Surv
        Representativeness of Data Base.


4.0     ANALYSIS OF NEW BOILER PROJECTS .............................  7

        Primary Reasons for New Boiler  Projects .....................  7
        Factors Affecting Boiler Decisions ..........................  JJ
        Cost Sensitivity  of Projects ................................  }«
        Existing Boiler Data  and Status Changes .....................  i&


 5.0     SULFUR DIOXIDE  EMISSIONS FROM  CATEGORY  I  BOILER  PROJECTS....  18
           Emission Rate
           Total Annual Emissions
   6.0
         IMPACT OF LOWER ENERGY PRICES	  24
 APPENDIX  1:  BOILER REPLACEMENT SURVEY QUESTIONNAIRE

 APPENDIX  2:  EMISSION  CALCULATION  PROCEDURES
                                       m

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                               LIST OF TABLES


Table                                                                  Page


 1        Description of All New Boilers Covered by Survey	   4


 2        Description of New Boiler Projects >100 MMBtu/hr  and  Using
            Coal, Oil, Natural Gas, or Wood as Primary  Fuel	   6


 3        Primary Reason for Project  (All Projects)	   8


 4        Primary Reason for Project  (Category I Projects)	   9


 5        Factors Affecting Decisions for Category  I  Projects	  13


 6        Percent of Projects That Would Have Proceeded as  Designed
            If Cost Increased	  14


 7        Existing Boiler  Information for Category  I  Projects	  16


 8        Changes in Status of Existing Boilers  (Category I
            Projects)	  17


 9        S0?  Emission  Rates From  New and  Existing  Boilers
              (Category  I  Projects)	 19


 10        Annual  S0«  Emission  Impact  (Category  I Projects)	 21
                                       IV

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                              EXECUTIVE SUMMARY

     This report presents an analysis of data collected through a written
survey of firms purchasing new industrial boilers between 1981 and 1984.
The purpose of the survey was to collect data which could be used to assess
the reasons for new industrial boiler purchases, the percentage of these
boilers which are used for new applications versus replacement of existing
boilers, and the impact of new boiler purchases on S02 emissions.
     A total of 168 surveys covering 229 new industrial boilers with 47,750
million Btu/hour heat  input capacity were collected and entered into a
computerized data base.   Of these,  151  units were  equal to or  larger than
100 million Btu/hour  and  designed  to fire coal,  oil, natural gas, or wood  as
the primary fuel; aggregate heat  input  capacity of these  boilers  was 38,657
million  Btu/hour.   Most  of  the  analysis in  the report  is  based on these 151
units.   Comparison  with  boiler  sales data gathered by  the American  Boiler
Manufacturers  Association (ABMA)  suggests that these  units represent greater
than  95 percent of  the industrial  boilers  in this category sold between 1981
 and 1984.
      Analysis of the data identified five primary reasons for installation
 of new boilers:  1) desire to use fuels other than those currently used by
 existing boilers (34 percent of the total), 2) need for additional  boiler
 capacity at an existing plant (22 percent), 3) poor condition qf an existing
 boiler (16 percent), 4) need for  steam at a new plant (14 percent), and 5)
 desire to cogenerate electricity  (14 percent).  Factors affecting the design
 of the new boiler and the cost sensitivity of  the boiler purchase decision
 were evaluated as a  function of these  five reasons.  Less than 10 percent of
 the purchasers indicated they would have changed  the project  if  costs  had
 increased by 10 percent; if  costs increased by 30 percent roughly one-half
 of the boiler projects would have been  changed.   Boilers  installed for  the
 primary purpose of fuel  switching and  cogeneration were  the most cost
 sensitive, while boilers installed due to  poor condition  of the  existing
 boiler were the least sensitive.

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     Data on 291 existing boilers that were in some way affected by
installation of the new boilers were also examined.  These boilers tend to
be much smaller in size and fire relatively greater amounts of oil and
natural gas than the new boilers.  Roughly 50 percent of the existing
boilers were shutdown or dismantled as part of the new boiler project while
the remaining 50 percent continued operating, generally at reduced load.  Of
the 50 percent reported as shutdown or dismantled, the boiler owners
indicated that about one-third could have been rebuilt to extend their
useful life.
     The above five reasons were also used to classify boilers as
replacement versus new application and as mandatory versus discretionary
purchases.  Based on this analysis, the number of replacement and new
application boilers are almost equal (50 percent each) while discretionary
purchases account for roughly 60 percent of sales versus 40 percent for
mandatory purchases.
     Analysis of S02 emissions found that although the new coal- and
oil-fired boilers have average emission rates that are 40 to 50 percent
lower than the existing boilers firing the same fuel, the average emission
rate for all boilers remained virtually unchanged because of changes in the
mix of fuels fired, specifically increased use of coal and decreased use of
natural gas.  This fact combined with the overall increase in total boiler
capacity results in an increase in total annual S02 emissions of roughly 70
percent compared to baseline emissions before the new boilers were
installed.  This increase results from 1) installation of new boilers that
are not replacing existing boilers, 2) replacement of existing boilers with
new boilers that are significantly larger, 3) fuel switches from natural gas
and oil to coal, and 4) continued operation of the existing boilers,
although at reduced load.
     Of the total annual SO- emissions occurring  after installation of all
the new boilers  (i.e., replacement and new installations), roughly one-
fourth were emitted by existing boilers that remained in operation after
installation of  the new boilers.  Of the emissions increase, roughly
one-half came from projects where the new boiler was  installed as a
replacement, with the other half coming from new  applications.   If only
                                     vi

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those boilers defined as mandatory (i.e., driven by factors largely
independent of boiler cost) were installed, emissions would have increased
by roughly 20 percent.
     Based on current fuel prices, the number of coal-fired boiler purchases
associated with fuel switching is expected to be lower in the future than in
the 1981-84 time period.  To evaluate the  impact of lower oil and natural
gas prices on potential S02 emissions, data from projects installed for
reasons other than fuel switching projects were tabulated.  Significantly,
when fuel switching is exluded from the  analysis, the percentage of new
boilers installed as replacements for existing boilers decreases from
roughly one-half (as discussed above) to about one-fourth and the increase
in emissions declines from about 70 percent to about 40 percent.  If current
low fuel prices were to also discourage  construction of cogeneration boilers
(also  found to be sensitive to project economics) as well as fuel switching
boilers, replacement boilers would represent  roughly one-third  of new  boiler
installations; total S02  emissions would be about 20 percent higher than
from the existing boilers alone.
     In  summary, under  all  of  the  situations  examined, the  survey data
indicates  that total  emissions of  S02 are  higher after installation of new
boilers  than  they were  previously.   Major  reasons  for this  are  1)   instal-
lation of  new boilers  to  satisfy increased steam demands  at new and existing
plants,  2)  changes  in the relative use of  coal  versus  natural  gas,  and 3)
continued  operation of many existing boilers  (although  at reduced  loads)
 after  the  new boilers are installed.   Because of this  increased steam demand
 (and associated  energy use),  total annual  S02 emission  increase despite the
 fact that  new coal- and oil-fired boilers  have lower average emission rates
 per million Btu  of fuel fired than did the existing boilers.
                                      vn

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                  SURVEY OF NEW INDUSTRIAL BOILER PROJECTS
                                  1981-1984

1.0  INTRODUCTION
     This report presents the analysis of data collected through a written
survey of firms purchasing new industrial boilers between 1981 and 1984.
The purpose of the survey was to collect data which could be used to assess
the reasons for new industrial boiler purchases, the percentage of these
boilers which are used for new applications versus replacement of existing
boilers, and the impact of new boiler purchases on S02 emissions.
     Section 2 of the report reviews the data collection and management
procedures.  Section 3 summarizes general statistics on the boilers
surveyed; this information includes boiler size, fuel use, fabrication
methods, and methods of S02 control.  A comparison of the surveyed boilers
relative to boiler sales data gathered by the American Boiler Manufacturers
Association (ABMA) for the same time period is  also presented.  Section 4
presents an analysis of why these new boilers were built, factors
influencing boiler decisionmaking, the sensitivity of the boiler purchase to
increased costs, and the  impact of the new boiler on existing boilers at the
same  site.  Section 5 evaluates changes  in S02  emission rates and total
annual  emissions resulting from the overall new boiler project,  including
operational changes in  existing boilers  already at the site.  Section 6
examines possible  impacts  on  the  survey's  findings resulting 'from current
energy prices  which are lower than  those during the  1981-84 time period.

2.0   COLLECTION  OF DATA
      Information on boiler replacements  was  collected  using  a written  survey
form sent  to  recent purchasers of industrial  boilers.   The  following three
sections describe  the  survey form used to obtain data,  the  development  of a
mailing list  of recent  boiler purchasers,  and data management procedures
used to handle the survey forms after they were completed.

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Description of the Survey Form
     A survey form (Appendix 1) was developed to collect data on each new
boiler project; a project can consist of one or more new boilers.  The
survey form is divided into four major sections:
     o    Part I, containing general information on the boiler purchaser;
     o    Part II, describing the reason(s) for undertaking the new boiler
          project;
     o    Supplement A, providing detailed information on each new boiler
          installed as part of the overall project; and,
     o    Supplement B, providing detailed information on each existing
          boiler located at the site of the new boiler project (or an
          adjacent site in the case of several "third-party" cogenerators)
          which was affected in some way by installation, of the new
          boiler(s).
Parts I and II were completed for the entire project, while separate Supple-
ments A and B were completed for each individual boiler included in the
project.
Development of the Mailing List
     Information on new boiler orders was obtained from two data listings
collected by the U. S. Department of Energy (DOE):  Form ERA-97  (Boiler
Manufacturers Report) and Form EIA-97 (Boiler Order Report).  These two
reports contain essentially the same information; EIA-97 is the more recent
of the two and has superseded ERA-97.
     These forms are used by DOE to collect quarterly data from U. S. bo'iler
manufacturers, their foreign affiliates and subsidiaries, and U. S. boiler
rental companies on orders received from electric utilities and  industrial
firms operating  in the U.S.  (including territories and  administered areas).
Information  is required to be  submitted for all boilers having  a rated
capacity  of  40,000 or more pounds  of steam per  hour  (approximately
50 million Btu/hr  heat input capacity) and  includes:   boiler  function,  rated
capacity,  fuels  burned, date ordered, date delivered,  and the name  and
address of the purchasing/operating company.
     A  list  of the name,  address,  and telephone number of companies  ordering
boilers rated  at 80,000  pounds of steam  and  larger  between  January  1982 and

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September 1984 was obtained from the Form EIA-97 database.  Similar
information was obtained from Form ERA-97 for boilers ordered between
January 1977 and March 1982.  Both data sets were presorted to eliminate
non-industrial purchasers (e.g., electric utilities and institutional users
such as hospitals and universities) and waste heat boilers.  For use in the
survey, the database was further sorted to eliminate boilers ordered prior
to January 1981.
     As an additional check, the boiler inventory was screened to eliminate
boilers sold to rental companies, which would not be permanently installed
at a site.  Information on  the  remaining boilers was confirmed through
•telephone calls to each purchaser listed.  This was done  to verify
installation of the boiler  and  to obtain a correct name and address  for
survey mail out purposes.  Survey forms were  then sent to  185 companies.
Data Management Procedures
     Responses were received  from all  185 companies receiving the  survey
form.  Several of the respondents did  not complete the  survey,  indicating
that the  boiler was ordered prior to  1981, had  been cancelled,  or  was  below
the  100 million Btu per hour  threshold established for  the survey.   Data
from the  remaining 168  survey forms were entered into a computerized data
base,  and then manually reviewed  for  missing data  and keypunch  errors  to
eliminate possible problems in subsequent analysis.  Statistical  analyses of
the data  were  conducting  using MICRO-SAS software  developed by  SAS,  Inc.
 (located  in Gary, NC).

3.0  DESCRIPTION  OF NEW BOILER PROJECTS
Description of All  Pro.iects Surveyed
     A total  of 168 surveys were  entered into the  data  base,  covering  229
boilers  with  a total  heat input capacity of 47,750 million Btu/hour
 (assuming 1,176 Btu of fuel fired per pound  of steam generated).   Summary
 statistics for the new boilers included in  these projects are provided in
Table  1.   Note that 7 percent of the total  capacity and 23 percent of the
 number of boilers surveyed are less than 100 million Btu/hour.   Coal-fired

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TABLE 1.  DESCRIPTION OF ALL NEW BOILERS COVERED BY SURVEY
Total Number of Projects:
Total Number of New Boilers:
Total New Boiler Capacity (MMBtu/hr
Average Size of New Boiler (MMBtu/hr
Frequency Distribution (Percentage)


heat input):
heat input):
by:
-- Capacity (MMBtu/hr): Capacity 1%} No.
<100
100-150
150-200
200-250
250-400
400-600
>600
Primary Fuel:
Coal
Oil
Natural Gas
Wood
Other
Fabrication Method:
Package
Field
Number of Boilers Per Project:
1
2
3
4
5
-- Method of S02 Control:
Low-Sulfur Fuel
Flue Gas Desulfurization
Fluidized Bed Combustion
No Response
7.0
12.7
12.4
5.8
13.8
21.0
27.3

42.6
2.0
23.4
16.6
15.2

--
--

--
--
--
--
--

--
--
--
- --


47


Units
23.1
25.3
17.0
6.6
10.0
10.9
7.0
•
39.0
3.9
29.8
13.6
13.6

36.8
63.2

76.2
16.7
2.4
4.2
0.6

74.2
1.7
13.5
10.5
168
229
,750
209

(%)




























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boilers predominate (accounting for 43 percent of the capacity and 39
percent of the units).  These were followed in decending order by natural
gas, wood, other (consisting primarily of byproduct fuels such as black
liquor and refinery off-gas), and oil.  Almost 90 percent of the respondents
indicated they practiced some form of S02 control, primarily use of
low-sulfur fuels (74 percent of the boilers) followed by fluidized bed
combustion (14 percent).
     A subset of the data base was constructed containing only those
projects  (hereafter referred to as Category I projects) that included one or
more new  boilers equal to or greater than 100 million Btu/hour heat  input
capacity  (85,000 pounds of steam/hour) and that burned coal, oil, natural
gas, or wood as the primary fuel.  The Category I data base is summarized in
Table 2.  It includes  158 new boilers with a total capacity of 38,657
million Btu/hour.  Of  these  158 boilers,  151 meet the above size  and primary
fuel criteria.  The remaining seven boilers were  installed as part of
projects  involving one or more of  these  151 units, but are smaller than  100
million Btu/hour or fire byproduct fuels.  Units  greater than 250 million
Btu/hour  account for  64 percent of the capacity and  34 percent of the  new
boilers by number.  Fuel use  is generally similar to the larger  data base,
but contains  a  somewhat larger percentage of  coal and wood-fired units.
Sulfur dioxide  control statistics  are also  similar to the  larger data  base.
Representativeness of Data  Base
     The  survey was designed to gather  information on new  industrial boilers
sold between  1981  and 1984.   To evaluate the  completeness  of  the survey, the
Category  I data base  (excluding the  seven new boilers  smaller than  100
million  Btu/hr  capacity) was compared to boiler  sales data compiled  by the
American  Boiler Manufacturers Association (ABMA)  for the corresponding time
period  (January 1981-September 1984).   The ABMA  data were  adjusted  to
exclude  electric  utility  auxilliary  boilers  and  rental  boilers  (estimated  at
20 and  15 boilers, respectively,  based  on information  provided  by ABMA)  to
provide  a common  basis for  comparison.
     The  adjusted  ABMA sales data includes a  total of  156  boilers:   79
coal-fired,  50  oil- and gas-fired, and  27 wood-fired.   The Category  I
boilers  for  the same  fuels  total  151:   76 coal-fired,  49 oil- and gas-fired,

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TABLE 2.  DESCRIPTION OF NEW BOILER PROJECTS >100 MMBTU/HR AND
          USING COAL, OIL, NATURAL GAS, OR WOOD AS PRIMARY FUEL


     Total Number of Projects:                                 115
     Total Number of New Boilers:                              158
     Total New Boiler Capacity' (MMBtu/hr heat input):       38,657
     Average Size of New Boiler (MMBtu/hr heat input):         245
     Frequency Distribution (Percentage) by:

          Capacity (MMBtu/hr):        Capacity (%)   No. Units (%}
                    <100                   0.6            1.9
                    100-150               12.9           30.4
                    150-200               15.4           24.7
                    200-250                7.2            9.5
                    250-400               14.0           12.0
                    400-600               21.5           12.6
                    >600                  28.5            8.9

     Primary Fuel:
               Coal                       49.2           48.1
               Oil                         2.3            5.1
               Natural Gas                24.6           27.2
               Wood                       19.9           16.5
               Other                       3.9            3.2

     Fabrication  Method:
               Package                      --            25.3
               Field                        -            74.7

     Number  of Boilers  Per  Project:
               1                            -            76.5
               2                            --             15.7
               3                            -              2.6
               4                            -              4.3
               5                            --              0.9

     Method  of S02 Control:
      Low-Sulfur  Fuel                        --             72.2
      Flue Gas  Desulfurization              --              1-9
      Fluidized Bed Combustion              --             15.8
     No Response                            --             10-1

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and 26 wood-fired.  Based on these almost identical numbers, results derived
from the survey data are expected to closely reflect the total population of
industrial boilers sold between 1981 and 1984.

4.0  ANALYSIS OF NEW BOILER PROJECTS
Primary Reasons for New Boiler Pro.iects
     One of the principal questions in the survey dealt with why the boiler
was purchased.  This question was asked both as an "essay"  question
(Question II-6) and by asking respondents to rank a list of factors on a
scale of 0 (unimportant), 1 (somewhat important), and 2 (very  important)
(Question II-9).  Based on review of the responses to these two questions,
five primary reasons were identified that accounted for all of the projects
surveyed:

     o  desire to change base fuel;
     o  need for  additional boiler capacity at an existing  plant;
     o  condition of the existing boiler;
     o  need for  steam at a new plant site; and
     o  desire to cogenerate electricity.

Each of these primary reasons  is briefly described below.   Tables 3  and  4
present the percent of boilers falling  into each  primary reason category for
the entire data base and Category  I  boilers,  respectively.

Fuel Switching--
     Given relative fuel prices  and  availability  during the time  period
covered by the  survey, many boiler  owners were  faced  with  the decision to
continue  operation with  a  fuel considered  to  be  expensive  and unreliable
 (e.g.,  oil) or  convert to  a fuel  considered  cheaper  and more secure (e.g.,
coal).   As shown  in Tables  3  and 4,  respectively, the survey respondents
 indicated 28  percent  of  all  projects and 34  percent  of the Category I
projects  were  for the primary  reason of fuel  switching--the most frequent
response  given  for  any of  the  above reasons.

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  TABLE 3.   PRIMARY REASON FOR PROJECT (ALL PROJECTS)


1. Fuel Switch
2. Additional Capacity Needed
Number
of Projects
47
43
Percent
of Total
28.0
25.6
  - Primary (36)
  - Backup (7)

Boiler Condition                          34          20.2
  - Unreliable (29)
  - Unsafe (2)
  - Unable to Comply with Air Regs (3)
4. New Plant
5. Cogeneration
REPLACEMENT (Fuel Switch, Boiler Condition)
NEW APPLICATION (Additional Capacity,
New Plant, Cogeneration)
DISCRETIONARY (Fuel Switch, Backup Capacity,
Repairable Boiler Condition, Cogeneration)
MANDATORY (Primary Capacity, Unrepairable
Boiler Condition, New Plant)
25
19
168
81
87
168
86
82
168
14.9
11.3
TooTo
48.2
51.8
ToO
51.2
48.8
TooTo

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   TABLE 4.   PRIMARY REASON FOR PROJECT (CATEGORY I PROJECTS)
Number
of Projects
1. Fuel Switch 39
?. Additional Caoacitv Needed 25
Percent
of Total
33.9
21.7
       - Primary (19)
       - Backup (6)

3.   Boiler Condition                          19          16.5
       - Unreliable (16)
       - Unsafe (2)
       - Unable to Comply with Air Regs (1)
4. New Plant
5. Cogeneration
REPLACEMENT (Fuel Switch, Boiler Condition)
NEW APPLICATION (Additional Capacity,
New Plant, Cogeneration)
DISCRETIONARY (Fuel Switch, Backup Capacity,
Repairable Boiler Condition, Cogeneration)
MANDATORY (Primary Capacity, Unrepairable
Boiler Condition, New Plant)
16
16
Us
58
57
Tl5
67
48
Tl5
13.9
13.9
ToO
50.4
49.6
ToO
58.3
41.7
TooTo

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Additional Capacity--
     The need for additional boiler capacity—either to meet increased steam
demand at an existing industrial plant (defined as primary capacity in
Tables 3 and 4) or to increase the flexibility/reliability of steam
generation at the plant (defined as backup capacity)--was the second most
frequent reason for installing new boilers.

Boiler Condition--
     Replacement of existing boilers due to their condition was the third
most frequent reason given for new boiler projects.  This category includes
projects in which the existing boiler was unreliable (e.g., high percentage
of downtime, high O&M costs), unsafe (e.g., unable to pass a safety
inspection), or unable to comply with existing environmental regulations.
This category was further subdivided into six projects in which the boiler
owner said the existing boiler could have been repaired or rebuilt (but was
replaced with a new boiler  anyway) and thirteen projects in which the boiler
owner stated repair or rebuild was not economically feasible (Question
B-10).

New  PI ant--
     The  fourth most  frequent reason for  installation of new boilers was
steam demand  at new manufacturing  plants  where a  boiler did not previously
exist.

Cogeneration--
      Partially as a  result  of economic  incentives provided under  the  Public
Utility Regulatory Policy Act (PURPA),  the desire to  cogenerate  both
electricity and  process  steam was  the  fifth most  frequent  reason  given  for
constructing  new boiler  projects.

      Boilers  installed for  these five reasons were then combined and
redivided according  to two  alternative groupings:  first,  whether the new
 boiler replaced an existing boiler or was a new application and second,
                                      10

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whether installation of the boiler was discretionary (i.e., decision was
based on the economics of a new versus existing boiler) or mandatory (i.e.,
required by factors other than boiler economics).  The first of these
alternative groupings was made based on the following interpretation of the
primary reason for each project:
     o  Replacement--.fuel switching and boiler condition,
     o  New application—additional capacity, new plant, and cogeneration.
The second of these alternative groupings was based on the following
interpretation of the primary reason:
     o  Discretionary--fuel switching, backup capacity, repairable  boiler
        condition, and cogeneration,
     o  Mandatory—primary  capacity, unrepairable boiler condition, and
        new plant.

As  shown  in Table 3, of  all the projects  surveyed, replacement  projects  and
new application  projects  were roughly  equal  in number  (48  percent versus  52
percent).  A  similar split  also occurred  between discretionary  versus
mandatory projects  (51 percent versus  49  percent).  For the  Category  I
projects  (see Table 4),  the split between replacement  versus new application
remained  roughly equal  (50.4  percent versus  49.6 percent)  while the
frequency of  discretionary  projects  increased  to 58 percent  versus  42
percent for mandatory  projects.
Factors Affecting Boiler Decisions
      Information was  also provided by  the survey respondents on the factors
affecting the design  of  the new  boiler project (Question  11-10).   This
 information  was provided by ranking the listed factors as  either  0, 1,  or 2
 (using the same definitions discussed  above).   The individual  responses on
 each  factor were then averaged for the projects within each of the five
  NOTE:  In a few cases, existing boilers were affected by cogeneration, but
  in most cases were not.  In all cases, however, a primary factor in the
  project design was the production of electricity, rather than simply
  replacement of existing boilers.
                                      11

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primary reasons discussed above.   The results of this analysis  are presented
in Table 5.
     Capital cost and fuel cost were among the three highest rated factors
for each of the primary reason categories except boiler condition.  Compa-
tibility with existing fuel handling facilities was the primary factor
affecting the design of projects undertaken due to poor condition of the
existing boiler (this factor was also important—scoring fourth—for
additional capacity projects).  Frequently mentioned as unimportant were
corporate policy  and environmental regulations.
Cost Sensitivity of Pro.iects
     To estimate the economic  sensitivity of projects to changes  in project
cost,  the  respondents were asked whether their decision to build  the project
would  have changed if the projected cost of steam  increased by 10, 20, 30,
or  50  percent  (Question  II-8).  The data in Table  6  indicate the  percentage
of  industrial  boiler projects  that would continue  as designed even if the
costs  were increased by  these  percentages.
      In general, most projects were  insensitive to a 10 percent  increase  in
cost  (only 7 out of 89 projects--8 percent--would  have changed their
decision).   If costs increased by 20  to 30 percent,  an increasing number  of
projects  would have changed;  roughly  one-half  of the projects would have
been  altered if project  costs  increased by 30  percent.  However,  additional
 increases in cost  up to  50 percent  resulted  in few additional changes.
      The  two most  cost sensitive  project groups were those  undertaken
primary to fuel  switch  (60 percent  would  have  changed  their decision  if
costs increased by 30  percent) and  cogeneration  (64 percent).  The least
 cost  sensitive were  those undertaken primarily because of the condition  of
 the existing boiler  (35  percent).   These  results  tend  to support the  view
 that  fuel switching  and  cogeneration are  highly discretionary,  and are
 therefore most sensitive to  cost  increases.   On the other hand,  boiler
 projects  tied  to the existing boiler condition or need for  additional
  NOTE:  The low rating of corporate policy may have reflected the lack of
  corporate policies related to boiler purchase decisions, rather than the
  unimportance of policies which did exist.
                                      12

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TABLE 5.  FACTORS AFFECTING BOILER DECISIONS FOR CATEGORY I PROJECTS
  Reason
  Top Three Factors
                                                    Bottom Three Factors
 New Plant
Fuel Costs
Fuel Security/Reliability
Capital Costs
Existing System Components
Compatibility w/Existing
  Fuels
Space/Land Available
Additional
  Capacity
Fuel Costs
Operating Flexibility
Capital Costs
Interest Rates
Corporate Policy
Space/Land Available
 Boiler
   Condition
Compatibility w/Existing
  Fuels
Maintenance Costs
Boiler Efficiency
Corporate Policy
Interest Rates
Environmental Regulations
 Fuel  Switch
Capital Costs
Fuel Costs
Corporate Funds
  Availability
Corporate  Policy
Environmental  Regulations
Existing System Components
 Cogeneration
Capital  Costs
Fuel  Costs
Boiler  Efficiency
 Corporate  Policy
 Environmental  Regulations
 Minimize Personnel
 NOTE:   The low rating of corporate policy may have reflected the lack of
  corporate policies related to boiler purchase decisions,  rather than the
  unimportance of policies which did exist.
                                      13

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TABLE 6.  PERCENT OF PROJECTS THAT WOULD HAVE PROCEEDED AS
          DESIGNED IF COST INCREASED

Primary
Reason
New Plant
Additional
Capacity
Number of
Projects
(100%)
12
19

Percent of Projects Proceeding
If Costs Increased Bv
10%
92
100

20%
67
79

30%
42
53

50%
42
47

Boiler            17          94        71        65        65
 Condition


Fuel  Switch       30          90        77        40        30


Cogeneration      11          82        64        36        36


      TOTAL        89*        92        73        47        43

*26 of the  115 respondents did  not answer this question.
                              14

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capacity are undertaken for mandatory reasons, and as a result were the
least sensitive to cost increases.  These results are consistent with the
results presented previously in Table 5.
Existing Boiler Data and Status Changes
     A total of 115 projects make up the Category I data base.  These
projects include 158 new boilers and 291 existing boilers that were in place
and affected in some way by the new boiler.  Data on these existing boilers
are presented in Table 7.  These data include existing boilers affected by
"third-party" cogenerators who sold steam to an existing plant.
     Although most of the existing boilers (53 percent) covered by the
survey are over 100 million Btu per hour, their average size is signifi-
cantly smaller than the new boilers--109 million Btu/hour for the existing
boilers versus 245 million Btu/hour for the new Category I boilers.  Also, a
much greater percentage of the existing boilers fire oil and natural gas.
Oil-fired boilers make up only 5 percent of the new boilers, but comprise 24
percent of the existing boilers.  Natural gas was used in 27 percent of the
new boilers and 56 percent of the existing boilers.  Correspondingly, coal-
fired boilers comprise only 10 percent  of the existing boilers compared to
48 percent of the new boilers.
     Of the existing plants installing  new boilers, 86 percent had existing
boilers which were in  some way affected by installation of a new boiler.
Table 8 presents data  on  how and why the status of the existing boilers
changed as  a result of the new boiler  installation.  The summation of
individual  percentages to more than  100 percent reflects respondents
checking more than one answer.  Almost  50  percent  of the existing  boilers
that were  affected were  either shut  down without  being dismantled  (20
percent) or were dismantled  (29 percent).  The  remaining 50  percent
continued  operating after installation  of  the new boiler,  but  generally  for
fewer  hours or  at  lower  load than  before.
     The major  reason  given  for changes in the  status  of existing  boilers
was  the need to reduce fuel  costs  associated  with the  operation  of the
existing boiler (63 percent).  Thirteen percent of the existing  boilers  had
their  status changed due to  high  operating and  maintenance costs.   Excess
                                      15

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TABLE 7.  EXISTING BOILER INFORMATION FOR CATEGORY I PROJECTS
     Total Number of Projects:                                   79
     Total Number of Existing Boilers:                          291
     Total Existing Boiler Capacity  (MMBtu/hr heat input):   31,617
     Average Size of Existing Boiler  (MMBtu/hr heat input):     109
     Frequency Distribution  (Percentage) by:
                                           Capacity  (%)
                                              17.8
                                              22.
                                              18.
                                              15,
Capacity (MMBtu/hr):
          <100
          100-150                   22.3
          150-200                   18.7
          200-250                   15.9
          250-400                   12.0
          400-600                    8.0
          >600                       5.3

     Fuel type:
          Coal                      13.1
          Oil                       28.5
          Natural Gas               42.9
          Wood                       7.4
          Other                      8.0

     Fabrication Method:
          Package
          Field

Number of existing  boilers per project:
           Number of Boilers
             Per Pro.iect
                  1
                  2
                  3
                  4
                  5-10
                                      Fred
                                        10
                                        23
                                        21
                                        14
                                         8
                                         3
No. Units (%}
      J
      .7
      .7
46
22
13
 8.9
 4.8
 2.1
 1.0
                                                                9.6
                                                               23.7
                                                               56.0
                                                                6.5
                                                                4.1
                                                               40.2
                                                               59.8
   Percent
     12.7
     29.1
       .6
       .7
 26.
 17.
 10.0
  3.8
           Percent of existing plant projects that involved changes in one
           or more existing boilers:  86.0
                                       16

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TABLE 8.  CHANGES IN STATUS OF EXISTING BOILERS (CATEGORY I PROJECTS)



            How did status change (for boilers that did change)

                                               % Yes*

                 Shutdown  (w/o dismantling)    19.6
                 Dismantled                    29.2
                 Used as backup/peaking
                   boiler                      43.0
                 Reduced hours of operation     3.1
                 Switched  fuels                 1.0
                 Other                          8.2

            Why. did status change  (for boilers that did change)

                                               % Yes*

                 High fuel costs               62.5
                 High O&M  Costs                13.0
                 Excess boiler capacity        12.4
                 Mechanical  problems            7.9
                 Obsolete  (age, operating
                   pressure,  size,  poor
                   reliability)                 6.5
                 Environmental restrictions     5.2
                 Inadequate  space               2.4
                 Other                          1.7

            For those boilers that  were  shutdown/dismantled  percent
            that could have  had useful life  extended:

                                               34.7

 *
  %  by  number  of units.
                                   17

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boiler capacity after installation of the new boiler was the reason for 12
percent of the changes.  Environmental restrictions, primarily related to
S02 emissions, accounted for another 5 percent.  Other individual responses
accounted for less than 10 percent of the changes.
     In order to gain some insight as to the options available to the boiler
owner/operator, a question (Question B-ll) was posed as to whether those
boilers that were shut down or dismantled could have had their useful life
extended.  According to the survey respondents, only about one-third
(35 percent) of the existing boilers that were shut down or dismantled could
have been economically repaired or rebuilt to extend their useful life.

5.0  SULFUR DIOXIDE EMISSIONS FROM CATEGORY I BOILER PROJECTS
     Sulfur dioxide emissions- from both the new and existing boilers
involved  in each project were estimated on a "before project" and "after
project"  basis.  Emission estimates are presented in two ways:   pounds per
million Btu of heat input and total annual emissions (i.e., tons/year).
Calculation of annual  emissions from  each boiler  is based on the quantity
and sulfur content of  both the base fuel  and backup fuel.
Emission  Rate
     Table 9  summarizes  sulfur dioxide  emission rate data for the  existing
and new  Category  I boilers firing coal,  oil, and  all fuels  (whether  firing
coal,  oil, natural gas,  or wood)  as  a base  fuel.  Average emission rates  for
the existing  coal-fired  boilers  after completion  of the new boiler projects
were  lower  than  they  were before  the projects:   2.49 compared  to 2.89 Ibs
SO-/MMBtu.   Whether  this decrease resulted  from shutting down  existing
 boilers  with high emission  rates  or changing the quality of the coal used in
 the  existing boilers  was not examined.   New coal-fired boiler emission rates
 averaged 1.47 Ibs S02/MMBtu, significantly  lower than the average emission
 rate  for the existing boilers.   Of these new boilers,  67 percent have an
 emission rate equal  to 1.2 Ibs S02/MMBtu or less (this rate equals the
 federally regulated limit [40 C.F.R. Part 60,  Subpart D] then in effect for
 SO- emissions from coal-fired industrial boilers >250 million Btu/hour).
 Another 26 percent have an emission rate of 1.3-2.4 Ibs S02/MMBtu.  The
                                      18

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          TABLE  9.   SO-  EMISSION  RATES  FROM  NEW AND  EXISTING  BOILERS
                      2        (CATEGORY I  PROJECTS)
                                          Number of    Average Emission Rate
                                           Boilers          f#SQ2/MMBtu)

     Coal-Fired  Boilers
               Existing  Boilers
               ---   Before the Project        28               2.89
               ---   After the Project         16               2.49
               New  Boilers                    76               1.47

     Oil-Fired Boilers
               Existing  Boilers
               ---   Before the Project        73               1.99
               ---   After the Project         37               1.92
          --   New  Boilers                     7               1.14
     All  Boilers (Coal,  Oil,  Natural  Gas,  and Wood)
               Existing  Boilers
               ---  Before the Project       279               0.81
               ---  After the Project        141               0.79
          --   New Boilers                   151               0.80
     Frequency Distribution (Percent) of New Boilers by Emission Rate:
#S02/MMBtu
<0.8
0.9-1.2
1.3-1.8
1.9-2.4
2.5-3.0
3.1-4.0
Coal
5
62
17
9
1
5
Oil
43
29
0
29
0
0
NOTE:  See Appendix 2 for discussion of calculation procedures and number of
  boilers included in analysis.

  Percentages do not sum to 100 due to independent rounding.
                                     19

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remaining 7 percent have an emission rate greater than 2.4 Ibs S02/MMBtu.
     Average emission rates for the existing oil-fired boilers after the
projects were also lower than they were before the projects:  1.92 compared
to 1.99 Ibs S02/MMBtu.  New boiler emission rates averaged 1.14 Ibs
S02/MMBtu, with 43 percent (three out of seven boilers) at 0.8 Ibs S02/MMBtu
or less (this rate equals the federally regulated limit [40 C.F.R. Part 60,
Subpart D] then in effect for S02 emissions from oil-fired industrial
boilers >250 million Btu/hour) and 72 percent at 1.2 Ibs S02/MMBtu or less.
None of the new oil-fired boiler emission rates exceeded 2.4 Ibs S02/MMBtu.
     As noted in Section 4, however, the primary fuels fired by the new
boilers is significantly different from that of the existing boilers.
Specifically, natural gas-fired boilers (which cause essentially no S02
emissions) decrease from 56 percent of the existing boilers to 27 percent of
the new boilers.  At the same time, the percentage of coal-fired boilers,
which represented 10 percent of the existing boilers, increased to 48
percent of the new boilers.  As a result, although new coal- and oil-fired
boilers have lower emission rates than existing boilers firing the same
fuel, the average emission rate for all the new boilers (i.e., the composite
emission rate for boilers firing coal, oil, natural gas, and wood) is
virtually the same as for the existing boilers.
Total Annual Emissions
     Table 10 summarizes the number of new and existing boilers included  in
the analysis and the  total annual S02 emissions before and  after the
projects  as a function  of primary reason  for the project, fuel type,  and  new
versus  existing boiler  classification.  The number of boilers  is classified
by base  fuel type, whereas S02 emissions  are based on the fuel's use  both as
the base  and backup  fuel.  For example, S02 emissions  from  oil reflects  both
its firing as a base  fuel  as well  as  a backup  fuel in  boilers  primarily
firing  coal, natural  gas,  or wood.  The  far right  column  of Table  10
indicates  the net  change  in  the  S02 emissions.   The  number  of new  boilers
and the annual  emissions  associated with  replacement versus new  application
and discretionary  versus  mandatory boiler projects (as previously defined)
are  summarized  at  the bottom of  the table.
                                      20

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         TABLE 10.  ANNUAL S02 EMISSION IMPACT (CATEGORY I PROJECTS)

REASON
NEW PLANT




ADDITIONAL
CAPACITY



BOILER
CONDITION



FUEL SWITCH




COGENERATION




ALL




REPLACEMENT
NEW APPLICATION
DISCRETIONARY
MANDATORY

BOILER
NEW

EXISTING

TOTAL
NEW

EXISTING

TOTAL
NEW

EXISTING

TOTAL
NEW

EXISTING

TOTAL
NEW

EXISTING

TOTAL
NEW

EXISTING

TOTAL





FUEL
COAL
OIL
COAL
OIL

COAL
OIL
COAL
OIL

COAL
OIL
COAL
OIL

COAL
OIL
COAL
OIL

COAL
OIL
COAL
OIL

COAL
OIL
COAL
OIL





NO. OF
BOILERS
13
0
0
0
13
7
1
17
1
24
5
6
10
23
44
39
0
0
44
83
10
1
1
2
14
74
8
28
70
178

--
. _
- -


BEFORE
0
0
0
0
0
0
0
42854
2512
45366
0
0
16331
9051
25382
0
0
0
30037
30037
0
0
2720
333
3053
0
0
61905
41933
103838
55419
48419
49828
54010
ONS S02/YE
AFTER
18676
248
0
0
18924
9458
130
33427
1034
44049
9633
2871
7540
250
20294
60816
10756
0
2325
73897
15720
28
2047
1
17796
114303
14033
43014
3610
174960
94191
80769
111223
63737
AR 	
rtrx
CHANGE




18924




-1317




-5088




43860




14743




71122
38772
32350
61395
9727
NOTE:  See Appendix 2 for discussion of calculation procedures and number of
  boilers included in analysis.
                                     21

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     Overall  S02 emissions increased by 71,122  tons  of S02  per  year—a net
increase of 68 percent as a result of new boiler projects.    Of the total
emissions after the projects were completed,  73 percent (128,336 tons) was
from the new boilers; the remaining 27 percent  (46,624 tons)  was from
continued operation of the existing boilers.   Emission changes  associated
with each of the primary reasons for the projects are discussed below.

New PI ants--
     New plants are a major source of sulfur dioxide emissions.  Because
boilers installed at new plants are not replacements for existing boilers,
they add capacity and emissions where none existed previously.   The total
S02 emissions from the surveyed new plants is 18,924 tons per year; this
represents 26 percent of the total S02 emission  increase from all boiler
groups.

Additional Capacity--
      New boilers were installed primarily to increase  the steam capacity  of
existing plants; in  most  cases, the  fuel choice  for  the new  boiler  was  the
same  as  that  of the  existing boilers  at  the same plant.  Several of these
projects also consolidated or  otherwise  modified the operation  of  existing
boilers, thereby reducing  emissions  from the existing  boilers.   In  more than
half  the cases, the  existing boiler  remained in  operation.   The net change
in emissions  from  the new and  existing boilers  was  a reduction  of  1,317 tons
of S0?  per year, or  roughly 3  percent less than  the  emission level  existing
before  installation  of  the new boiler.

Boiler  Condition--
      These projects  installed  one or more  new  boilers because  of the  poor
condition  of the existing boilers.  Of the 33  existing boilers affected,
 only 6  continued operation after the new boiler was installed.   Although the
 new boilers generally fire the same fuel as  the original  boiler and have
 * See Appendix 2 for example calculations of S02 tonnages and percentages.
                                      22

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lower emission rates per million Btu of heat input, they are also generally
larger than the boilers they replaced.  Overall, net emissions from this
category decreased by 5,088 tons of S02 per year, or roughly 20 percent.

Fuel Switch--
     The largest single category of boiler projects were undertaken to
change the base fuel of the plant.  In most cases, the change was from oil
or natural gas to coal or coal-wood mixtures.  The net result was an
increase of 43,860 tons of S02 per year, representing 61 percent of the
total annual emissions increase and an increase of 152 percent relative to
the emissions of the existing boilers before these projects were undertaken.
(See Section 6 for additional discussion of this issue.)

Cogeneration--
     Cogeneration projects generally  involved adding a new boiler and
increasing fuel consumption at the plant (or at  an adjacent site in the case
of  third-party cogenerators).  Coal was the primary fuel.  In  some cases,
steam production from  existing boilers was replaced in whole or  in part by
the new cogeneration boiler.  The net change in  emissions was  an increase of
14,743 tons  of S02  per year,  representing  about  21 percent of  the total
increase  in  annual  SO- emissions  from all  categories.  This represents  an
almost six-fold  increase  in emissions compared  to  the existing boilers  that
were affected  by the cogeneration projects.   (See  Section 6 for  additional
discussion  of  this  issue.)

New Application  vs. Replacement  Boilers--
      The  annual  emissions were  also categorized  for new  application  boilers
versus those primarily installed  to replace  existing  boiler capacity.   As
mentioned above, new  applications include  new plants, cogeneration
facilities,  and  boilers built to  satisfy additional steam demand at  an
existing  plant.  Of the total net increase in S02  emissions,  new application
boilers accounted  for  32,350  tons of  S02 per year  (45 percent) compared to
38,772 tons  of S02  per year  (55  percent) for replacement boilers.
                                      23

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Discretionary vs. Mandatory Boilers--
     Annual emissions impacts were also calculated on the basis of discre-
tionary versus mandatory boiler projects.  Discretionary projects (fuel
switching, backup capacity, replacement of a repairable boiler, and
cogeneration) accounted for 61,395 tons (86 percent) of the total net
increase in annual S02 emissions.  Mandatory projects (addition of primary
capacity, replacement of an unrepairable boiler, and new plants) accounted
for the remaining 9,727 tons (14 percent) of net annual S02 emissions.  If
only those projects defined as mandatory had been built, S02 emissions would
have increased by 18 percent.- Discretionary boiler projects increased
emissions by  123 percent relative to the total before the project.

6.0  IMPACT OF LOWER ENERGY PRICES
     Two of the  major reasons given  in the survey for new boiler purchases
were fuel  switching and cogeneration,  in aggregate  accounting  for 48  percent
of all  Category  I projects  (see  Table  4).  Both of  these reasons were
heavily influenced by the  perceptions  of future energy  prices  and national
energy  policies  during  the 1981-1984 time  period.   During this period,
future  oil  and  natural  gas prices were generally  expected to be quite
high—and the reliability  of  their  supply  low.   In  addition, economic
 incentives under the  Public Utility Regulatory  Policies Act (PURPA)  made
 cogeneration projects  attractive to many investors.
      Given current  perceptions of lower  oil  and natural gas prices  in the
 future, construction  of new boilers for  reasons of fuel switching is
 expected to be significantly reduced.   Lower fuel prices will  also reduce
 the economics of some cogeneration projects and thereby decrease the number
 of new cogeneration boiler installations.   To aid in interpreting the future
 direction of boiler replacement decisions and S02 emissions, this section
 briefly summarizes the survey results if fuel switching projects singly and
 in combination with cogeneration projects are excluded from the analysis.
      First,  if  only fuel switching  projects are excluded, the  total  number
 of Category  I projects decreases from 115 to 76  (see Table 4).  The  split
 between replacement and new application boilers changes from  roughly 50/50

                                       24

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to 25 percent for replacement (due to boiler condition) and 75 percent for
new applications (new plants, capacity additions at existing plants, and
cogeneration).  Elimination of fuel switching projects reduces total S02
emissions to 73,801 tons before the projects and 101,063 tons afterward.  Of
these 101,063 tons, 56,764 tons (56 percent) are from new boilers and 44,299
tons (44 percent) are from existing boilers.
     Excluding fuel switching projects, the net increase in emissions is
27,262 tons (37 percent).  The emissions increase attributable to boilers
that were built for mandatory reasons (primary capacity, unrepairable boiler
condition, and new plants) is 9,727 tons (35 percent).  Emissions from the
remaining discretionary boilers (backup capacity, repairable boiler
condition, and cogeneration) increased by 17,535 tons.
     Second, if both fuel switching and cogeneration projects are excluded
from the analysis, the total number of Category I projects decreases from
115 to 60 (see Table 4).  The split between replacement and new application
boilers changes from roughly 50/50 to 33 percent for replacement and 67
percent for new applications.  Total annual S02 emissions increase from
70,748 tons before the projects to 83,267 tons afterward.  Of the 83,267
tons of SO- afterward, 41,016 tons (49 percent) are from new boilers and
42,251 tons (51 percent) are from existing boilers.
     The net increase in emissions from new projects excluding fuel
switching and cogeneration projects is 12,519 tons per year (18 percent).
The emissions increase attributable to boilers that were built for mandatory
reasons is 9,727 tons (74 percent).  Emissions from the remaining
discretionary boilers (now limited to backup capacity and repairable boiler
condition) increased by 2,792 tons.
     Thus, although the increase in SO^ emissions is smaller when fuel
switching by itself or fuel switching in conjunction with cogeneration are
excluded from the analysis, the remaining new boilers would still result in
net S02 emission increases of 18 to 37 percent compared to emission levels
prior to their installation.
                                     25

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              APPENDIX 1





BOILER REPLACEMENT SURVEY QUESTIONNAIRE

-------

-------
                                                         OMB Clearance No.
                                                            2060-0136
                           GENERAL INSTRUCTIONS

1.  This "questionnaire is designed to obtain information about industrial
    boiler projects.  It focuses on the factors that influence the decision
    to undertake a boiler project and the factors that are considered in
    the selection of boiler type and fuel.  Therefore, it is important that
    the individual(s) completing this questionnaire be the person(s) who
    actually made these kinds of decisions [or as close to the person(s) as
    possible for the project covered by this questionnaire].  If this person
    is not you, please route this questionnaire to the most appropriate
    individual in your organization.

2   The questionnaire is designed to obtain information on each boiler
    project.  For the purposes of this survey, a boiler project is defined
    as a series of activities that were begun due to a decision and plan
    to alter, expand, or in some way modify the boiler facilities at a
    particular plant site.  Consequently, a boiler project may involve a
    number of boilers and may include construction of several new boilers
    as well as reconstruction or rebuilding of several existing boilers.

    If you have undertaken more than one  boiler project over the last five
    years  (since  January 1, 1981), please fill out a separate questionnaire
    for each boiler  project.

3.  This questionnaire  consists of two parts  and two supplements.   It is
    necessary  to  carefully review  both parts  and both supplements of the
    questionnaire.   Please read the  introduction to each part and each
    supplement carefully and  follow  the  instructions included in the
    questionnaire itself.   Items  a-d below  address each of  these sections.

    a.  Part  I covers  general  information.   Even though the Part  I
        information will not  be used  in  the analysis, the  information
        requested is necessary if  additional  communication  is appropriate
        to understand  or clarify  answers  to various questions involved  in
        the questionnaire.

    b.  Part  II  is the main  part  of  the  survey.  Please answer  each  question
        completely.  Where space  is  provided for comments  or additional
         information, please  take  the time to provide  information  that will
         provide  a good understanding of  the reasons for your decision to
         undertake a boiler project.

     c.   Supplement A is to provide detailed information  about each  new
         boiler involved in the boiler project.   Supplement A has  one
         general  information page  (page A-l) and a  one-page questionnaire
         (page A-2) for each new boiler involved in the  project.   Please
         complete Supplement A by filling out the general  information page
         and then photocopying and completing a page A-2  for each  new
         boiler in the project.

-------
   d    Supplement B is to provide detailed information  about each existing
    '   boiler which may have been reconstructed, rebuilt, modified, or
        chanaed  in any way as part of the overall boiler project.  Even if
        an^ist SgboiU? wasonly operated  in  a different manner or
        just  shutdown, as a  result of the boiler project, please  identify
        and include  this boiler  in Supplement B.  Supplement B  has a general
        information  page  (page B-l) and  a three  page JuJst1»;n«ftJ;pages B'2
        through  B-4)  for each existing boiler involved in the boiler
        project.  Please complete Supplement  B by filling out the general
        information  page  and then photocopying and  completing pages  B-Z
        through  B-4  for  each existing  boiler  involved in the boiler
        project.

4.  The questionnaire should be  completed  and returned by July  18, 1986.

5   If you have any questions or anticipate difficulties in either fully
    responding or responding within the allotted time, please call the
    following individual:

                  Ms Dianne Byrne
                  Environmental   Protection Agency
                  (919) 541-5578

 6.  When  the questionnaire  is completed, please mail  to:

                  Ms  Dianne Byrne
                  Environmental  Protection Agency
                  OAQPS, ESED,  SOB (MD-13)
                  Research  Triangle Park,  NC 27711

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                                                               OMB  Clearance  No.
                                                                   2060-0136
              PART I:   SURVEY OF INDUSTRIAL BOILER PROJECTS

     This survey questionnaire is being sent to firms who have undertaken
one or more boiler projects within the last five (5) years.  The results of
this survey are intended to provide information on why boiler projects are
undertaken, the factors influencing the selection of the type of boiler and
the fuel, and whether existing equipment can be used in these projects.

     Please read the general instructions carefully before completing the
questionnaire.

     Please complete the following questions.  This information is necessary
if additional communication  is  required to clarify answers provided to
various  questions in the questionnaire.  The link between the name of the
particular plant  and the information  in the survey will not be provided
to the public in  any type  of summary  report that may be generated from
the  responses.
      1.   Name of firm:
      2.  Two-digit Standard Industrial  Classification  (SIC)  Code:

      3.  Name of person completing form:	
      4.  Phone Number (include area code): (	)

      5.  Position:	
      6.  Plant site address

          Street address:		

          City:	State: 	Zip Code:
       7.   Project number [As mentioned in the general instructions, a
           complete questionnaire needs to be completed for each separate
           boiler project (i.e., not each boiler but each project).]
           Consequently, if you are completing more than one questionnaire,
           identify separate projects by a project number, i.e., 1, 2, 3,
           etc.	.—.
                                     1-1

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              PART II:   SURVEY  OF INDUSTRIAL  BOILER  PROJECTS

1.  Project number (See instructions in Part  I):  	
2.  Is this new boiler located at a new "greenfield"  manufacturing
    plant?     	  Yes   	No

3.  Please complete Supplement A for each new boiler(s) included in
    the boiler project.

4   Did this boiler project involve or include reconstruction, rebuilding,
    modifying, or changes of any sort in any existing boilers, including
    operation of existing boilers at lower capacity or shutting down of
    existing boilers? 	Yes   	No

    If yes, how many existing boilers were affected in some way as a result
    of this boiler project?  	

5.  Please complete Supplement B for each existing boiler that was changed
    or affected in any way as a  result of this boiler project.

6.  Please describe your main reason for building a new boiler:
 7   If your decision was based on a cost analysis, please include a copy
     of the cost analysis if one is available.  If your decision was based
     on cost considerations, but an analysis isn't available, please describe
     the major cost considerations that influenced your decision.
                                     II-l

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8.  Would your decision to build a new boiler change if projected costs
    to produce steam increased by:

              10X    •       Yes	 No
              20*          " Yes   	. No
              30X	Yes   	No
              50%          ' Yes   	No

9.  To supplement your answer to question 6, Which of the following
    factors were also considered in deciding that there was  a  need for
    this boiler project?   Please rate EACH factor from 0 to  2  (0 - not
    considered or relatively unimportant; 1 - moderately important;  2 -
    very important).   If you considered factors that  are not on the  list,
    please add them  to the bottom of the list and rate them.
                       Factor                                    Rating

    a. additional boiler capacity was needed over and
       above  what the  existing  boilers could provide             	

    b. insurance  companies were no  longer willing to  provide
       insurance  coverage  for  existing boilers                   	

    c. existing  boiler(s)  could not be operated  safely           	
       without extensive  repairs

    d. existing  boiler(s)  could not be operated  reliably
       without extensive  repairs                                	

     e.  existing boiler(s)  could no longer  be operated in
      •  compliance with air pollution regulations                	

     f.  the boiler project allowed us to  change our base fuel
        (e.g., coal, oil,  natural gas,  wood,  waste fuels, etc.)  	

     g. the boiler project allowed us to  use multiple fuels      ^	

     h. boiler allowed us to consolidate  boiler operations
        (ie., replace several smaller boilers with one or more
        large boilers)                                            	

     i. new boiler provides us with more backup boiler capacity   	

     j. the mode of  operation for the boilers changed (bigger
        load  swings, more  baseload, etc.)                         	

     k. steam quality  (pressure, temperature) requirements
        changed                                                   	

     1. desire to cogenerate electricity for on-site  use
        or resale                                                 	

     m. other (specify):	     	
                                     II-2

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 PART II (continued)

10   In considering a boiler project or selecting the type of boiler/fuel
     to use  a number of factors are weighed in the decision.  Some of the
     most commonly considered factors are listed below.  Please rate how
     important each of these factors were in your boiler project.  Please
     rate EACH factor from 0 to 2 (0 - not considered or relatively unimportant;
     1  - moderately important; 2 - very important).  If you considered factors
     that are not on the list, please add them to the bottom of the list and
     rate them.

                 Factor

     a. operating costs excluding fuel

     b. maintenance costs excluding fuel

     c. fuel  costs

     d. interest  rates

     e. capital  cost  of  project

     f. availability  of  corporate  funds  for capital  improvements

      g. operating flexibility or backup  boiler capacity

      h. boiler efficiency

      i. compatibility with existing fuels at plant

      j. security or reliability of fuel  supply

      k. space or land availability

      1. ability to use existing system components       -

      m. ability to minimize need for additional operating or
         maintenance personnel
       n.  corporate  policy  (specify):

       o.  environmental  regulations
          (specify): __	.
       p.  other (specify):
                                      II-3

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11   Of the following system components that were present on-site at
     the time of construction of the boiler project, which could continue
     to be used to service either new boilers involved in the boiler
     project or existing boilers that were modified or changed in any way
     as part of the boiler project.  (0 - could not be used at all; 1 -
     could use as is or with minor modification; 2 - could use only with
     major modification)
     If the boiler project was part of a new "greenfield" plant, skip this
     question.                                                „  _    ^  .
                                           Can Service    Can Continue to Service
                                           New Boilers   Existing Boilers Changed
     System Component                         Added       or Modified in Some May
     a. fuel storage                          	               	
     b. fuel handling                         	               	
     c. boiler  house                          	               	
     d. boiler  feedwater  treatment           	               	
     e. condensate  return                    	               	
     f. boiler  blowdown and treatment         	               	
     g.  solid  waste handling and
          disposal                            	               	
     h.  air pollution control equipment      	               	
      i.  waste water treatment system         	               	
                                      II-4

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          SUPPLEMENT A — NEW BOILERS INVOLVED IN BOILER PROJECT


     This supplement is intended to collect information about the new
boiler or boilers included in the project covered by this questionnaire.
This Supplement A consists of two (2) pages.  This page (page A-l) contains
questions about all the new boilers installed.  The following page (page A-2)
requests informaTToh about each new boiler.  Consequently, please photocopy
and complete as many copies of page A-2 as necessary to identify and
describe each new boiler.  For each new boiler, please complete a separate
page A-2.


     1.  Project number  (same as Question 16 of Part I): 	

     2.  Number of  new boilers included in  this project: 	

     3.  Maximum  (design)  capacity of each  new boiler:

            Boiler  II	  thousand pounds steam/hr

            Boiler  #2  	____  thousand pounds steam/hr

            Boiler  *3	thousand pounds steam/hr

            Boiler  #4  	thousand  pounds steam/hr

                Total  	

      NOTE:   If more than four new boilers were installed,  please identify
             at the bottom of this page the maximum design  capacity of
             each additional new boiler.)


      4   What was the total capacity of the boilers that were shut down
          or modified in any way as a result of the new boiler project?
                  	 thousand pounds steam/hr.
                                    A -  1

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             SUPPLEMENT A — INFORMATION FOR EACH NEW BOILER


(For each new boiler, please answer the following questions.  Use one
 page for each boiler.)

1. This page is for boiler number:
   [If you have more than one new boiler in this project, identify each
   new boiler by a separate number (i.e., 1, 2, 3, etc.)]:

2. Type of boiler: 	Package or	Field-erected

3. Maximum capacity of this boiler: 	 (thousand pounds steam/hr)

4. Base fuel for this boiler (coal, oil, natural gas, wood  bark, etc.):


5. Base fuel characteristics:

   a. Weight %  ash 	              b. Weight % sulfur 	

   c. Heat content  	        d. Annual fuel consumption  :
      (Btu/lb,  Btu/gal,  or                   tons coal _^r^__	
         Btu/scf - please state)              tons other  solid fuel
                                             gallons  oil 	
                                             cubic feet gas
 6.  Backup fuel  for this  boiler (coal,  oil,  natural  gas,  wood bark,  etc.)
 7.  Backup fuel  characteristics:

     a.  Weight %  ash 	           b. Weight % sulfur
     c. Heat content   	        d. Average annual fuel consumption
        (Btu/lb, Btu/gTTor                  tons coal ^	
         Btu/scf - please state)             tons other solid fuel
                                             gallons oil
                                             cubic feet gas

 8. Regulatory limit for S02 that applies to this boiler: _
 9. Emission control technique used to control S02 emissions: (please check)

     a. Low sulfur fuel  	         b. Flue gas desulfurization  	

     c. Other (please specify)   	

10. If this is a coal boiler, type of fuel firing system:

     a. Pulverized coal 	   b. Stoker coal 	  c. Other  (specify) 	
                                     A-2

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       SUPPLEMENT B  —  EXISTING BOILERS  INVOLVED  IN  BOILER PROJECT


     This Supplement is intended to collect information about the existing
boiler or boilers that  were involved in  the boiler project in some way.
This may have been reconstruction or rebuilding of an existing boiler
or a change in the manner of its operation.  Consequently, even if an
existing boiler was only operated at a lower capacity, shutdown, or
placed in a standby or  back-up position, as a result of the boiler project,
please identify and include this existing boiler in completing this
supplement.

     This first page (page B-l) contains questions about all the existing
boilers that were involved in the boiler project in some way.  The remaining
paqes  (pages B-2 through B-4),  request information about each existing
boiler that was involved in the boiler project.  Consequently, please
photocopy and complete as many copies of pages B-2 through B-4 as necessary
to  identify each existing boiler involved in the boiler project.  For
each existingUoiler,  please complete a separate set of pages B-2 through
"6^47

    1.   Project  number (same as Question 16 of Part  I): 	
     2.   Number  of existing  boilers  involved in this boiler project: 	

     3.   Maximum (design)  capacity of  each existing boiler affected
         by the  boiler  project:

                  Boiler  #1   	  thousand pounds steam/hr

                  Boiler  #2 	  thousand pounds steam/hr

                  Boiler  13   	  thousand pounds steam/hr

                  Boiler  #4	  thousand pounds steam/hr

                       Total _^_____

     NOTE:  If more than four existing boilers were involved  in this
            boiler project in some way, please identify the maximum
            design capacity of each additional existing boiler that
            was involved at the bottom of this page.

     4    At the conclusion of the boiler project, what percent of this
          total  capacity was replaced, shut-down, or placed in a stand-by
          position:

                    	 % replaced  or shut-down

                     	% placed  in stand-by position
                                     B-l

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           SUPPLEMENT B — INFORMATION FOR EACH EXISTING BOILER
(For each existing boiler, please answer the following questions.  Please
photocopy and complete as many copies of the following pages (i.e., B-2,
B-3, and B-4) to provide information on each existing boiler.)


1.  This page is for boiler number: 	
    (If you have more than one existing boiler which was involved in the
     boiler project, please identify each boiler by a separate number,
     i.e., 1, 2, 3, etc.):


2.  Age of boiler: 	
3.  Type of boiler:  	Package or	  Field-erected


4.  Maximum capacity of this boiler: 	thousand pounds  steam/hr


5.  Base fuel for  this boiler  (coal, oil,  natural gas,  wood bark,  etc.):

      a. Before  project: 	   b.  Following project: 	


      c. Base  fuel  characteristics:

                                   Before Project            After Project

        i.  Weight % ash              	               	

        ii. Weight  X sulfur         	               	
        111'.  Heat content
             (Btu/lb, Btu/gal or
             Btu/scf - please state)

        iv.  Annual fuel consumption

               tons coal
               tons other solid fuel
               gallons oil
               cubic feet gas
                                    B-2

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Supplement B (continued)
6. Backup fuel for this boiler (please identify):
     a. Before project:	    b. After project: 	
     c. Backup fuel characteristics:
                                  Before Project            After Project
        i. Weight X ash               	             	
        ii. Weight X sulfur           	             	
        iii.  Heat content             	             	
             (Btu/lb,  Btu/gal  or
              Btu/scf  -  please state)
        iv.  Annual  fuel  consumption
              tons  coal               	             	
              tons  other solid fuel   	             	
              gallons  oil             	             	
              cubic feet gas         	             	
 7.   Regulatory limit for SOe that applies to this boiler:
 8. Emission control technique used by boiler to meet S0£ emission limit:
    (Please check control technique used.)
                                   Before Project           After Project
      a. Low sulfur fuel               _                   -
      b. Flue gas desulfurization      _                   _
      c. Other  (please   specify)       _                   -
 9. How did  the status  of this boiler change because  of  the boiler project?
    (You may check  more than  one)
                    _  Shut down
                    _  Used as backup boiler only
                    _  Used as a  peaking  unit only
                            Reduction  in hours of operation
                            Change to  a different fuel
                            Dismantled
                            Other  (specify:  _ )
                                     B-3

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10.   Why was this boiler's status changed (You may check more than one)?
                          Boiler failed safety inspection
                          Insurance could not be obtained
                          Maintenance costs too high
                          	  Estimated annual costs (optional)
                          Non-fuel operating costs too high
                          	  Estimated annual costs (optional)
                          Fuel costs too high
                          	  Estimated annual costs (optional)
                          Other  (specify:	)
 11.  For  a  boiler  that was dismantled or completely shut down, could this
     boiler have been rebuilt to extend its  useful life?
                Yes                 No
     If yes,  what kind of  repairs  would  have  been  necessary?
 12. (Optional)
 Please provide any additional  information about this boiler project
 that you believe would be helpful  for us to know in order to fully
 understand the nature of the project.
                                     B-4

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                                 APPENDIX 2
                       EMISSION CALCULATION PROCEDURES

TABLE 9
     Average emission rates for coal- and oil-fired boilers were calculated
by dividing the fuel sulfur content for each boiler by its heat content and
then multiplying by two to convert pounds of sulfur to S02.  Emission rates
for individual boilers were then summed and divided by the number of units
to obtain average rates for coal- and oil-fired boilers.  Average emission
rates for all boilers were calculated by multiplying the average emission
rates for for each fuel (coal, oil, natural gas, and wood) by its percentage
of the total boiler capacity  (from Tables 2 and 7) after excluding  "other"
fuels; natural gas and wood were assumed to be sulfur free.

TABLE 10
     Annual emissions from coal and oil firing as  both a base and backup
fuel were calculated for  each boiler by converting fuel sulfur content  to
the equivalent amount of  S02  and then multiplying  by the quantity of fuel
used (to convert the quantity of oil from gallons—as reported on the survey
form—to pounds, a  conversion factor of eight pounds per gallon was used).

CALCULATION OF EMISSION CHANGES BEFORE AND AFTER THE PROJECTS
     Annual emissions are subdivided in Table 10 by fuel type (coal and oil)
and age  (new  and existing).   Many of the key numbers used  in the text are
composites of these  subsets.   For example, the reported total emissions from
new boilers at the  top of page 22 of 128,336 ton is the composite of
emissions from new  coal-  and  oil-fired boilers  (114,303 plus 14,033,
respectively).  Percentage changes were calculated by subtracting the
"before" emissions  from the  "after" emissions and  then dividing by  the
"before" level.  For example, the 68 percent increase in total emissions
resulting from the  new projects was calculated by  dividing the difference  in
emissions "before"  and "after" (174,960-103,838-71,122) by the emissions
"before"  (103,838).

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NUMBER OF BOILERS INCLUDED IN ANALYSIS
     Because of incomplete fuel data on three survey forms (representing six
boilers), small differences exist in the number of boilers reported on
Tables 9 and 10.  For five of these six units (two new coal-fired boilers
and three exisitng oil-fired boilers included on Table 9, but not Table 10),
fuel sulfur content needed to estimate the S02 emission rate per million Btu
was reported, but the quantity of fuel used was omitted.  The sixth boiler
(included on Table 10, but not Table 9) was a new oil-fired boiler installed
as emergency backup for two existing coal-fired boilers; on this unit, oil
sulfur content was omitted while the fuel usage was reported as zero.
Emissions from this unit were assumed to be zero.

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TECHNICAL REPORT DATA
(Please read Instructions on the reverse before completing)
1. REPORT NO. 2.
EPA-450/3-87-006
4. TITLE AND SUBTITLE
Survey of New Industrial Boiler Projects
1981 - 1984
7. AUTHOR(S)
David M. White, Radian Corporation
Research Triangle Park, NC 27709
9. PERFORMING ORGANIZATION NAME AND ADDRESS
Office of Air Quality Planning and Standards
U.S. Environmental Protection Agency
Research Triangle Park, NC 27711
12. SPONSORING AGENCY NAME AND ADDRESS
Office of Air and Radiation
U.S. Environmental Protection Agency
401 M Street, S.W.
Washinntnn. Pf ?QAfin -»,-„ — , 	

5. REPORT DATE
Aoril 1987
8. PERFORMING ORGANIZATION CODE
8. PERFORMING ORGANIZATION REPORT NO.
10. PROGRAM ELEMENT NO.
11. CONTRACT/GRANT NO.
68-02-3816
13. TYPE OF REPORT AND PERIOD COVERED
Final
14. SPONSORING AGENCY CODE
EPA/200/04
15. SUPPLEMENTARY NOTES
         This report presents an analysis of new  industrial  boilers  sold
    between 1981 and 1984.  The analysis focuses  on  151  new  coal-,  oil-,
    natural gas-, and wood-fired boilers larger than 100 million  Btu/hour
    and 291 existing boilers.  Specific issues examined  in the report include
    the reasons for purchasing new industrial boilers, the percentage of new
    boilers used for new applications versus replacement of  existing boilers,
    and the impact of new boiler purchases on sulfur dioxide emissions.

17. KEY WORDS AND DOCUMENT ANALYSIS
3. DESCRIPTORS
Air Pollution
Steam Generating Units
Sulfur Dioxide
18. DISTRIBUTION STATEMENT
Release Unlimited
b.lOENTIFIERS/OPEN ENDED TERMS
Industrial Boilers
Air Pollution Control
19. SECURITY CLASS (This Report)
Unclassified
20. SECURITY CLASS (This page)
Unclassified
c. COSATl Held/Group
13B
21. NO. OF PAGES
A*\
22. PRICE
EPA Form 2220-1 <"•». 4-77)    PREVIOUS EDITION is OBSOLETE

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