United States Environmental Protection Agency Hazardous Waste Engineering Research Laboratory Cincinnati OH 45268 Research and Development EPA/600/S8-87/049 Dec. 1987 Project Summary Remedial Action Costing Procedures Manual Brian Burgher, Mike Culpepper, and Werner Zieger The full manual provides specific procedures for the cost estimating and economic analysis steps required for preparing engineering cost estimates for selecting remedial action alterna- tives in response to the requirements of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and the National Con- tingency Plan (40 CFR 300). The manual is designed to be used in conjunction with EPA's manual entitled Guidance on Feasibility Stu- dies Under CERCLA. The audience for this manual includes EPA Regional Project Officers, remedial investiga- tion/feasibility study contractors, and state and local remedial action person- nel and other Federal agencies. Detailed procedures are provided for generating estimated capital and annual operating costs, calculating annual costs and present worth for each remedial action alternative, and performing sensitivity analyses of the cost estimates to determine the impact of changes to various cost input parameters. Worksheets are provided to assist the user in developing the feasibility cost analyses. An example cost analysis is provided to illustrate these procedures. This Project Summary was devel- oped by EPA's Hazardous Waste Engi- neering Research Laboratory, Cincin- nati, OH, to announce key findings of the research project that is fully doc- umented in a separate report of the same title (see Project Report ordering information at back). Introduction As the number and scope of remedial actions at uncontrolled hazardous waste disposal sites increase, there is a cor- responding need for standard procedures for preparing engineering cost estimates for proposed remedial solutions. The National Contingency Plan (NCR) of 1982 outlines a general approach for conduct- ing remediation at Superfund sites. The purpose of the manual is to provide specific procedures for the cost estimat- ing and economic analysis steps required for the various remedial action planning phases. These phases are: • Preparing an initial assessment of remedial action alternatives to estab- lish a general cost for the remedial investigation/feasibility process and initial remedial measures, • Screening remedial action alterna- tives during feasibility analysis to eliminate those alternatives for which the costs are substantially greater than other alternatives and yet do not provide a commensurate public health or environmental benefit, • Preparing detailed cost estimates for feasibility studies to aid in selecting a remedial action alternative. The full manual presents procedures and provides worksheets to accomplish the cost analysis objectives of the phases. The guidance presented has been developed for generalized condi- tions at uncontrolled hazardous waste disposal sites. The user should modify these procedures where necessary to accommodate site-specific conditions. ------- The anticipated audience for this document includes those persons responsible for Superfund remedial actions: EPA Regional Project Officers, remedial investigation/feasibility study contractors, state and local remedial action personnel, and other Federal agencies. This manual should also be useful to those involved in planning state- and private-lead and voluntary actions, particularly to demonstrate to the public and other interested parties that the selection of a remedial action alternative was conducted according to EPA approved procedures. Discussion Chapter 2 of the full manual addresses initial site planning cost estimating. Site response assessment costing is impor- tant because it sets the tone for the remedial investigation and feasibility study, and gives a rough estimate of the level of effort and funding necessary to address site problems under Superfund. It is a fairly straightforward procedure requiring minimal time and effort to complete. It should be noted that these initial costs will be superseded by costs derived during the feasibility study process. The purpose of Chapter 2 is to define the steps of the site response assess- ment process and offer guidelines as to how costs for each of these steps may be derived. With this data the reader should be able to: • Construct a site response assessment report outline and identify areas which require estimating. • Assign order-of-magnitude costs to the applicable sections of the site response assessment report format. • Determine total order-of-magnitude costs for site RI/FS activities and remedial alternatives available at the site assessment stage. Chapter 3 describes standard proce- dures for preparing cost estimates for remedial action alternatives being eval- uated during feasibility analysis. Initial site planning cost estimating efforts, discussed in Chapter 2, are based solely on existing data and are performed to provide general cost data associated with RI/FS activities. Remedial Removal measures, and remedial alternatives. Feasiliby study cost estimating is aimed solely at providing remedial altnernative costs using information collected during the investigation. The sections in Chapter 3 provide an overview of the costing process for both screening and detailed feasibility analysis of alternatives; proce- dures for economic analysis; guidance on the use of sensitivity analysis; and an example illustrating these cost analysis procedures. Additionally, worksheets are provided to assist the user to estimate, analyze, and present costs for remedial action alternatives. Brian Burgher and Werner Zieger are with JRB Associates, McLean, VA 22102; Mike Culpepper is with CHtM Hill, Atlanta, GA 30339. Doug/as Ammon is the EPA Project Officer (see below). The complete report, entitled "Remedial Action Costing Procedures Manual," (Order No. PB 88-113 691/AS; Cost: $14.95. subject to change) will be available only from: National Technical Information Service 5285 Port Royal Road Springfield, VA 22161 Telephone: 703-487-4650 For information Donald Banning can be contacted at: Hazardous Waste Engineering Research Laboratory U.S. Environmental Protection Agency Cincinnati, OH 45268 United Stales Environmental Protection Agency Center for Environmental Research Information Cincinnati OH 45268 BULK RATE POSTAGE & FEES PAID EPA PERMIT No. G-35 Official Business Penalty for Private Use S300 EPA/600/S8-87/049 uuui 60604 ------- |