United States
Environmental Protection
Agency
Policy Planning,
And Evaluation
(PM-221)
EPA-230-1 1-90-083
November 1990
SEPA
Environmental Investments*
The Cost Of A
Clean Environment
Radiation
Other
Water
Rep9rt of the Administrator of the
Environmental Protection Agency
to the Congress of the United States
Printed on Recycled Paper
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EPA-230-11-90-083
November 1990
ENVIRONMENTAL INVESTMENTS:
THE COST OF A CLEAN ENVIRONMENT
REPORT OF THE ADMINISTRATOR
OF THE
ENVIRONMENTAL PROTECTION AGENCY
TO THE
CONGRESS OF THE UNITED STATES
Washington, DC 20460
-------
Ill
ADMINISTRATOR'S PREFACE
Over the past 20 years, the citizens of the United States have made a significant, enduring
commitment to protecting the environment. This new report, Environmental Investments: The Cost
of a Clean Environment, for the first time shows the full extent of this commitment—amounting to
an investment of $115 billion a year in current dollars to protect and restore our nation's air, water,
and land. This is just over two percent of our Gross National Product. EP A's report looks in some
detail at what our country has spent, what we are spending, and what we are projected to spend on
all types of pollution controls.
Of course, the country has received considerable value for these investments, and EPA has
underway additional work to compile these benefits.
In the current report, a handful of points stand out:
• First, spending on environmental problems is rising significantly with obvious consequences
for the expenditures of governments at all levels and of industry. Moreover, if the upward
trend continues into the next century, this increased spending could affect U.S. competitive-
ness in world markets.
• Second, besides the level of spending, the allocation of resources is changing. The share
of costs devoted to land protection is projected to rise relative to that for air and water
protection over the next decade.
• Third, the costs of pollution control are rising at a time when unmet environmental needs
are still quite large. The American people are asking for more in the way of environmental
improvements and making clear politically they will not tolerate backsliding. Nor do I want
to see rollbacks of hard won environmental progress. But particularly in today's economy,
I am concerned about the price tag of meeting growing environmental demands.
Thus, one of my priorities at EPA is ensuring that resources devoted to achieving the nation's
environmental goals are used as efficiently and effectively as possible. All EPA programs are
considering the most cost-effective ways to meet the Agency's mandate consistent with our statutory
responsibilities. Yet I have concluded we must redouble our efforts to find and apply more cost-
effective approaches, to engage in negotiations and voluntary agreements to cut pollution, to foster
breakthroughs in cleanup technologies, and to explore new ways to finance environmental
improvements.
One promising approach to making environmental protection more efficient is to craft incentives
that harness the marketplace on behalf of the environment. Using a combination of incentives and
vigorous enforcement of existing laws, we can engage the marketplace to deal effectively with the
subtle and complex environmental problems of the 1990s. These are often caused by small, widely
scattered sources not always amenable to federal regulation—problems like municipal and
hazardous wastes, toxic substances in the air and water, contamination of ground and surface waters
November 1990
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IV
Environmental Investments
from agricultural and urban runoff, and global atmospheric changes—to name some current
problems with which the Agency is grappling.
A good example of this approach is the system of economic incentives proposed by President
Bush to curb acid rain, which were passed by the 101st Congress in the new Clean Air Act
Amendments of 1990. Under this system, electric utilities will be given a limited number of
marketable permits designed to reduce their sulfur dioxide emissions by about half. EPA will
monitor emissions to ensure that they do not exceed the allotted levels. If a company finds that
cleanup costs are high at one plant and that purchasing additional allowances would be less
expensive, it will be able to buy allowances from other utilities. On the other hand, a company may
cut emissions so far that it will be able to sell its extra allowances or bank them to provide for future
growth. And the plant will be able to pursue the least expensive methods of pollution
control—energy conservation, different fuels, new technology—provided only that it achieves the
pollution reductions the law requires. Setting the goals nationally while providing to plant and
business managers, who know their operations best, the flexibility to choose the methods that work
for them will achieve air quality goals at the lowest possible cost, by our estimates at perhaps one-
fifth less than the cost of more traditional command and control approaches. Like other economic
incentives, this emission trading system also has the advantage of promoting innovation in pollution
prevention.
As part of my emphasis at EPA on economically smart approaches to environmental protection,
I am increasing the use of economic analysis, strategic planning, and research. They will be used
to ensure that the resources devoted to pollution control are directed towards environmental goals
where the greatest reductions in environmental risks can be achieved. In this regard, EPA is in the
process of using the data base developed in this report to see where our spending can be better
aligned with the most serious environmental risks. We believe, for instance, that some of the
environmental problems that will see the greatest expected increase in costs during the decade, as
reported here, are also areas where as yet uncontrolled environmental risks may be less than
originally thought. In many cases, there is no discretion under the law as to what EPA must do, and
we will carry out these responsibilities as fully and vigorously as we can. In other cases, EPA
proposes through its strategic planning process and review of future regulations to direct resources,
where discretion is allowed, to the highest priority environmental risks.
In sum, our challenge over the next decade is to reconcile the expectations of the American
people for greater environmental protection with our country's aspirations for growth. We need to
deliver in the most cost-effective manner the continued public health benefits of pollution control
and assure that the natural systems that sustain all human activities, including economic activities,
continue to provide for generations to come.
William K. Reilly
Administrator
November 1990
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V
EXECUTIVE SUMMARY
This report is being transmitted to Congress in response to Section 312(a) of the Clean Air Act
and Section 516(b) of the Clean Water Act. Unlike previous such reports, however, it goes beyond
the requirements of these sections, by presenting a broader picture of environmental pollution
control expenditures reflecting the Environmental Protection Agency's broad mandate.
SUMMARY OF COSTS
The Report concludes that total annualized costs for all pollution control activities in the United
States at seven percent interest have increased and are projected to increase as follows (figures for
year 2000 are provided for both present and full implementation scenarios):
Total Annualized Costs
1972
1987
1990
200(
)
Present
Full
In billions ot 1986 dollars
26
85
100
148
160
In billions of estimated 1990 dollars
30
98
115
171
185
As Percent of GNP
0.9
1.9
2.1
2.6
2.8
The present implementation option assumes that present levels of implementation of existing pro-
grams remain the same as in 1987. The full implementation option assumes that the investments
needed to bring about nationwide attainment of the national ambient air quality standard for ozone
and the fishable/swimmable goals of the Clean Water Act by the year 2000. The comparison with
Gross National Product is intended to provide a frame of reference to allow the reader to judge the
relative importance of environmental costs to a well-known aggregate measure of economic activity.
Although total annualized costs are increasing, they are increasing at a decreasing rate. The
yearly rate of increase in total annualized costs decreased from 14 percent between 1972 and 1973
to six to eight percent in the mid-1980s and is proj ected to fall further to about three percent in the
late 1990s (assuming full implementation).
The Report also provides estimates of those pollution control costs that are Federally-mandated
as follows (assuming full implementation):
Federally-Mandated Annualized Costs
1972
1987
1990
2000
In billions ot 1986 dollars
IS
67
SI
137
In billions of 1990 dollars
21
77
93
158
As Percent of GNP
0.9
1.9
2.1
2.4
November 1990
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VI
Environmental Investments
Pollution control capital investment is estimated as follows (figures for year 2000 are provided for
both present and full implementation scenarios):
Pollution Control Capital Investment
1972
1987
1990
2000
Present
Full
In billions of 1986 dollars
20
30
41
30
39
In billions of 1990 dollars
23
35
47
35
45
As Percent of Total Capital Investment
2.5
2.3
2.8
1.7
1.9
In general, pollution control capital investment as a percentage of total capital investment, which
is an important measure of the impact of pollution control costs on U.S. capital markets, reached
a high in the mid-1970s at about 3.4 percent and has been trending irregularly downward since then.
It is important to mention, however, that the year 2000 capital costs may be underestimated because
when the data were unclear, future costs for new regulations were assigned to operating rather than
capital costs.
In general, this report presents data on environmental pollution control costs during the period
1972-1987, projects these costs for each subsequent year to the year 2000 under a number of
assumptions, and breaks them down in a variety of ways. These ways include differentiating
between capital, operating, and annualized costs, as well as the medium where the pollution is con-
trolled, the sector (e.g., public, private) from which the control is funded, new versus existing
regulations, whether the control is primarily a result of a Federal mandate or the result of local
initiative, and to the extent permitted by the data, by pollutant controlled.
The historical data are largely based on surveys of actual spending as conducted primarily by
the Department of Commerce. Projections are based on simple extrapolations of spending trends
as well as EPA estimates of the cost of newly implemented and proposed regulations. The
Administration's January 1990 Clean Air Act reauthorization proposal was the basis for projections
of future air pollution control costs.
COST COMPARISONS
The report draws five conclusions concerning cost comparisons made with the data presented:
• There is expected to be a major reallocation of the percentage of pollution control
expenditures to each media over the next decade from air and particularly water pollution
control to land pollution control. This is a result of the major land pollution control
legislation passed by Congress beginning in the mid-1970s and greatly expanded in the
1980s. Specifically, the media shares were or are projected to be:
November 1990
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Executive Summary
Media Shares of Pollution Control Expenditures (percent of total)
1987
1997
Air and Radiation Costs
28.9
27.1
Water Costs
42.9
35.7
Land Costs
26.0
33.9
Chemical Control Costs
1.2
1.9
Multi-media Costs
1.1
1.5
• Although increasing, national environmental pollution control expenditures remain less than
half those for clothing and shoes, one-third those for national defense, one-third those for
medical care, one-fifth those for housing, and one-sixth those for food.
• The non-EPA Federal share of total annualized pollution costs is projected to increase by
more than 140 percent between 1987 and 2000, primarily as a result of the cost of military
and nuclear waste clean-up. All other shares, particularly the private sector, are expected
to fall somewhat. Even though the EPA share is projected to fall somewhat, the net effect
is that the Federal share as a whole is projected to increase over this period while the state
and local government share would decrease slightly.
• Although the percentage share of the burden on local government is expected to fall slightly
change relative to that of other economic sectors, there is expected to be a significant
increase in the real costs of pollution control on this sector; the result will be an increased
burden on the taxpayers and rate payers, which may be burdensome for some smaller
communities, unless mitigating measures are undertaken.
• National expenditures on environmental pollution control have been somewhat higher than
in many Western European nations as a percentage of gross domestic product.
ENVIRONMENTAL RESULTS
The report also summarizes the available evidence concerning changes in ambient pollution
levels and emissions, the "result" of the pollution control expenditures detailed in other sections of
the report. An ideal comparison of the costs and benefits of pollution control would require that
these benefits be identified, quantified, and monetized. This is an extremely difficult and data
intensive task and is not attempted in this report.
Instead, the report relies on historical data on estimated air and water pollutant emissions and
ambient pollution levels, and information on the production and regulation of hazardous waste and
toxic substances to provide an indication of environmental quality levels over time. While this
provides some indication of changing environmental quality levels, it does not adequately show the
degree of environmental protection afforded by cumulative pollution control efforts. In the absence
of controls, increasing population and levels of economic activity would have resulted in steadily
decreasing environmental quality overtime. In order to show environmental quality improvements
resulting from pollution controls adequately, one would need to compare current levels of
November 1990
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Vlll
Environmental Investments
environmental quality indicators with estimated levels that would have prevailed in the absence of
cumulative pollution control efforts. Except in the case of the criteria air pollutants emissions, such
comparisons are precluded by the absence of data.
There are data, however, showing that there has been a substantial decrease in emissions of
major air pollutants since 1970 compared to what they would have been without controls:
ACTUAL EMISSIONS AS A PERCENTAGE OF ESTIMATED EMISSIONS USING 1970
LEVELS OF CONTROL
Particulate
Sulfur
Nitrogen
Volatile Organic
Carbon
Year
Matter
Dioxide
Oxides
Compounds
Monoxide
Lead
1984
33
71
82
60
56
19
1988
30
58
72
58
43
3
There has also been a substantial actual decrease in industrial and municipal discharges of total
suspended solids into water and some improvement in biochemical oxygen demand over the same
period.
November 1990
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IX
TABLE OF CONTENTS
ADMINISTRATOR'S PREFACE iii
EXECUTIVE SUMMARY v
TABLE OF CONTENTS ix
LIST OF FIGURES xiv
LIST OF TABLES xvi
ACKNOWLEDGMENTS xx
1. INTRODUCTION 1-1
1.1. DEFINITION OF COSTS CONSIDERED 1-1
1.1.1. Scope of Costs 1-1
1.1.2. Nature of Costs 1-2
1.2. COST CATEGORIES 1-3
1.2.1. Costs by Economic Type 1-3
1.2.2. Costs by Environmental Medium 1-5
1.2.3. Costs by Sector 1-7
1.2.4. Costs by Pollutant 1-7
1.2.5. Costs by Mandate 1-7
1.2.6. New and Existing Regulatory Costs 1-7
1.2.7. Costs by Year 1-8
1.3. CONVENTIONS USED 1-8
1.3.1. Intergovernmental Transfers 1-9
1.3.2. Projection Techniques 1-9
1.3.2.1. Existing Programs 1-9
1.3.2.2. New Regulations 1-10
1.3.3. Price Deflators Used 1-11
2. DATA SOURCES 2-1
2.1. U.S. DEPARTMENT OF COMMERCE SURVEY DATA 2-1
2.2. EPA BUDGET JUSTIFICATION DATA 2-2
2.3. REGULATORY IMPACT ANALYSES DATA 2-2
2.4. SPECIAL EPA ANALYSES DATA 2-2
3. COSTS OF AIR AND RADIATION POLLUTION CONTROL 3-1
3.1. AIR POLLUTION CONTROL 3-1
3.1.1. Stationary Sources 3-2
3.1.2. Mobile Sources 3-3
3.1.3. Total Air Pollution 3-4
November 1990
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x Environmental Investments
3.2. RADIATION CONTROL 3-5
3.2.1. Radon 3-5
3.3. TOTAL AIR POLLUTION AND RADIATION CONTROL COSTS 3-6
4. COSTS OF WATER POLLUTION CONTROL 4-1
4.1. WATER QUALITY 4-1
4.1.1. Point Source 4-2
4.1.1.1. EPA 4-2
4.1.1.2. State and Local Government 4-3
4.1.1.3. Private 4-4
4.1.2. Non-point Source 4-4
4.1.2.1. EPA 4-4
4.1.2.2. Non-EPA Federal 4-5
4.1.2.3. State and Local Government 4-5
4.1.2.4. Private 4-5
4.1.3. Groundwater Protection 4-6
4.2. TOTAL WATER QUALITY 4-6
4.3. DRINKING WATER 4-6
4.3.1. EPA 4-7
4.3.2. State Government 4-7
4.3.3. Local Government 4-8
4.3.4. Private 4-8
4.3.5. Total Drinking Water Costs 4-8
4.4. TOTAL WATER POLLUTION CONTROL COSTS 4-8
5. COSTS OF LAND POLLUTION CONTROL 5-1
5.1. SOLID WASTE 5-1
5.1.1. EPA 5-2
5.1.2. State Government 5-2
5.1.3. Local Government 5-2
5.1.4. Private 5-3
5.2. HAZARDOUS WASTES 5-3
5.2.1. EPA and Non-EPA Federal 5-3
5.2.2. State Government 5-4
5.2.3. Local Government 5-4
5.2.4. Private 5-4
5.3. LEAKING UNDERGROUND STORAGE TANKS 5-5
5.3.1. EPA and Non-EPA Federal 5-5
5.3.2. Local Governments 5-5
5.3.3. Private 5-6
5.4. TOTAL RCRA 5-6
5.5. SUPERFUND 5-6
5.5.1. EPA and Non-EPA Federal 5-7
5.5.2. State Governments 5-7
5.5.3. Private 5-8
November 1990
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Table of Contents xi
5.6. TOTAL LAND POLLUTION CONTROL COSTS 5-8
6. COSTS OF CHEMICAL CONTROL 6-1
6.1. TOXIC SUBSTANCE CONTROL 6-1
6.1.1. EPA and Non-EPA Federal 6-2
6.1.2. State and Local Governments 6-2
6.1.3. Private 6-2
6.2. PESTICIDE CONTROL 6-3
6.2.1. EPA 6-3
6.2.2. State and Local Governments 6-4
6.2.3. Private 6-4
6.3. TOTAL CHEMICAL CONTROL COSTS 6-4
7. COSTS OF MULTI-MEDIA CONTROL PROGRAMS 7-1
7.1. EPA MANAGEMENT AND SUPPORT 7-1
7.2. EPA ENERGY PROGRAM 7-2
7.3. EPA INTERDISCIPLINARY PROGRAM 7-3
7.4. COMMUNITY RIGHT TO KNOW PROGRAM (EPCRA) 7-4
7.5. UNDESIGNATED NON-EPA FEDERAL 7-4
7.6. TOTAL MULTI-MEDIA COSTS 7-4
8. TOTAL COSTS AND MAJOR SOURCES OF UNCERTAINTY 8-1
8.1. GENERAL TRENDS IN TOTAL COSTS 8-1
8.1.1. Total Capital Expenditures 8-1
8.1.2. Total Annualized Costs 8-3
8.1.3. Total Federally-Mandated Costs 8-4
8.1.4. Total Costs by Funding Source 8-4
8.1.5. Total Costs by Environmental Medium 8-5
8.2. MAJOR SOURCES OF UNCERTAINTY 8-6
8.2.1. Factors Contributing to Bias in Unknown Directions 8-6
8.2.1.1. Commerce Department Survey Data 8-6
8.2.1.2. Cost Estimates for the Clean Air Act Amendments 8-6
8.2.1.3. Capital Amortization Rate 8-6
8.2.2. Factors Contributing to Downward Bias 8-7
8.2.2.1. Exclusion of Pre-1972 Capital Costs 8-7
8.2.2.2. Exclusion of Certain Costs 8-7
8.2.3. Factors Contributing to Upward Bias 8-8
8.2.3.1. Actual Costs Often Below Ex Ante Estimates 8-8
8.2.3.2. Cost Projections for Existing Programs 8-8
9. ANALYSIS AND CONCLUSIONS 9-1
9.1. COST COMPARISONS 9-1
9.1.1. Total Expenditures as a Percentage of Gross National Product 9-1
9.1.2. International Pollution Control Expenditures 9-2
9.1.3. Environmental Media Expenditure Shares 9-3
November 1990
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xii Environmental Investments
9.1.4. Cost Burdens on Local Governments 9-4
9.1.5. Long Term Trends in Total Costs 9-6
9.2. CONCLUSIONS 9-6
10. ENVIRONMENTAL TRENDS 10-1
10.1. AIR QUALITY 10-1
10.1.1. Pollutant Emissions 10-2
10.1.1.1. Particulates 10-2
10.1.1.2. Sulfur Oxides 10-2
10.1.1.3. Nitrogen Oxides 10-3
10.1.1.4. Volatile Organic Compounds 10-3
10.1.1.5. Carbon Monoxide 10-3
10.1.1.6. Lead 10-3
10.1.2. Effects of Pollution Controls on Air Emissions 10-4
10.1.3. Ambient Air Quality 10-4
10.2. WATER QUALITY 10-5
10.2.1. Discharges 10-5
10.2.1.1. Municipal 10-5
10.2.1.2. Industrial 10-6
10.2.1.3. Non-point Source 10-6
10.2.2. Ambient Water Quality 10-7
10.3. LAND QUALITY 10-8
10.3.1. Hazardous Waste Management 10-8
10.3.2. Hazardous Waste Remediation 10-9
10.3.3. Underground Storage Tanks 10-9
10.4. EXPOSURE TO CHEMICALS 10-9
10.4.1. Toxic Substances 10-9
10.4.2. Pesticides 10-10
November 1990
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Table of Contents
Appendices
A. ESTIMATION OF COSTS FOR NEW AND FORTHCOMING REGULATIONS
B. ESTIMATION OF STATIONARY SOURCE AIR POLLUTION CONTROL COSTS
C. ESTIMATION OF MOBILE SOURCE EMISSIONS CONTROL COSTS
D. ESTIMATION OF PRIVATE RADON MITIGATION COSTS
E. ESTIMATION OF NON-POINT SOURCE POLLUTION CONTROL COSTS
F. ESTIMATION OF WATER POLLUTION CONTROL COSTS
G. ESTIMATION OF SOLID WASTE COSTS
H. ESTIMATION OF SUPERFUND, UST, AND FEDERAL HAZARDOUS WASTE
COMPLIANCE COSTS
I. ESTIMATION OF TOXIC SUBSTANCES CONTROL COSTS
J. ESTIMATION OF PESTICIDE CONTROL COSTS
November 1990
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XIV
LIST OF FIGURES
1-1: PROJECTION TECHNIQUES ILLUSTRATED 1-12
8-1: ENVIRONMENTAL CAPITAL INVESTMENT AS A PERCENTAGE OF TOTAL
CAPITAL INVESTMENT 8-9
8-2: TOTAL ANNUALIZED COSTS BY TYPE OF REGULATION 8-10
8-3: TOTAL ANNUALIZED COSTS AS A PERCENTAGE OF GNP 8-11
8-4: PERCENT CHANGE IN ANNUALIZED COSTS FROM PREVIOUS YEAR
ASSUMING FULL IMPLEMENTATION AND 7% INTEREST 8-12
8-5: TOTAL ANNUALIZED COSTS BY FUNDING SOURCE ASSUMING PRESENT
IMPLEMENTATION AND 7% INTEREST 8-13
8-6: TOTAL ANNUALIZED COSTS BY MEDIUM AS A PERCENTAGE OF GNP . . 8-14
8-7: TOTAL LAND COSTS AS A PERCENTAGE OF GNP 8-15
9-1: U.S. POLLUTION CONTROL EXPENDITURES AS A PERCENTAGE OF GNP . 9-8
9-2: INTERNATIONAL POLLUTION CONTROL EXPENDITURES AS A PERCENT-
AGE OF GDP 9-9
9-3: TOTAL CAPITAL AND OPERATING COSTS BY TYPE 9-10
9-4: TOTAL CAPITAL AND OPERATING COSTS BY MEDIUM 9-11
9-5: PERCENTAGE OF CAPITAL PLUS OPERATING COSTS BY MEDIUM 9-12
9-6: TOTAL LAND CAPITAL AND OPERATING COSTS BY TYPE 9-13
9-7: TOTAL LAND CAPITAL AND OPERATING COSTS BY PROGRAM 9-14
9-8: SOLID WASTE CAPITAL AND OPERATING COSTS BY TYPE 9-15
9-9: HAZARDOUS WASTE CAPITAL AND OPERATING COSTS BY TYPE 9-16
9-10: UST CAPITAL AND OPERATING COSTS BY TYPE OF REGULATION 9-17
9-11: SUPERFUND CAPITAL AND OPERATING COSTS BY TYPE 9-18
10-1: ACTUAL EMISSIONS AS A PERCENTAGE OF HYPOTHESIZED EMISSIONS
AT THE 1970 LEVEL OF CONTROL 10-11
10-2: ACTUAL 1988 EMISSIONS AS A PERCENTAGE OF ESTIMATED 1988
EMISSIONS AT THE 1970 LEVEL OF CONTROL 10-12
10-3: ILLUSTRATIONS OF PLOTTING CONVENTIONS FOR BOXPLOTS 10-13
10-4: ANNUAL GEOMETRIC MEAN TOTAL SUSPENDED PARTICULATE
CONCENTRATIONS 10-14
10-5: ANNUAL MEAN SULFUR DIOXIDE CONCENTRATIONS 10-15
10-6: ANNUAL MEAN NITROGEN DIOXIDE CONCENTRATIONS 10-16
10-7: ANNUAL SECOND-HIGHEST DAILY MAXIMUM 1-HOUR OZONE
CONCENTRATIONS 10-17
10-8: ANNUAL SECOND-HIGHEST NONOVERLAPPING 8-HOUR AVERAGE
CARBON MONOXIDE CONCENTRATIONS 10-18
10-9: ANNUAL MAXIMUM QUARTERLY AVERAGE LEAD CONCENTRATIONS 10-19
10-10: MUNICIPAL AND INDUSTRIAL WATER DISCHARGES IN 1973 AND THE
MID-1980S 10-20
10-11: WATER QUALITY TRENDS, 1974-1981 10-21
November 1990
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List of Figures xv
10-12: STEEL TANK VERSUS PROTECTED TANK PRODUCTION, 1980-1987 10-22
10-13: PERSISTANCE OF PCBs IN HUMANS, 1972-1983 10-23
10-14: TRENDS IN PRE-MANUFACTURE NOTICES (PMNS) FOR NEW CHEMICALS
RECEIVED BY EPA, 1979-1985 10-24
10-15: CONCENTRATIONS OF SELECTED PESTICIDES IN HUMAN TISSUE 10-25
November 1990
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XVI
LIST OF TABLES
1-1: PROJECTION TECHNIQUES ILLUSTRATED 1-13
1-2: PRICE DEFLATORS INDEXED TO 1986 1-14
2-1: PRINCIPAL DATA SOURCES BY TIME PERIOD 2-3
2-2: DATA SOURCES FOR HISTORICAL COSTS BY ENVIRONMENTAL MEDIUM 2-4
2-3: INDIVIDUAL REGULATIONS INCLUDED IN THE COST ANALYSIS 2-6
3-1: AIR AND RADIATION POLLUTION CONTROL CAPITAL COSTS BY FUNDING
SOURCE 3-7
3-2: AIR AND RADIATION POLLUTION CONTROL OPERATING COSTS BY
FUNDING SOURCE 3-12
3-3: ANNUALIZED AIR AND RADIATION POLLUTION CONTROL COSTS BY
FUNDING SOURCE 3-20
3-4: AIR AND RADIATION POLLUTION CONTROL CAPITAL COSTS BY
POLLUTANT 3-29
3-5: AIR AND RADIATION POLLUTION CONTROL OPERATING COSTS BY
POLLUTANT 3-34
3-6: ANNUALIZED AIR POLLUTION CONTROL COSTS BY POLLUTANT 3-39
4-1: WATER POLLUTION CONTROL CAPITAL COSTS 4-10
4-2: WATER POLLUTION CONTROL OPERATING COSTS 4-16
4-3: ANNUALIZED WATER POLLUTION CONTROL COSTS 4-22
5-1: LAND POLLUTION CONTROL CAPITAL COSTS 5-10
5-2: LAND POLLUTION CONTROL OPERATING COSTS 5-16
5-3: ANNUALIZED LAND POLLUTION CONTROL COSTS 5-23
6-1: CHEMICAL SUBSTANCE CONTROL CAPITAL COSTS 6-5
6-2: CHEMICAL SUBSTANCE CONTROL OPERATING COSTS 6-8
6-3: ANNUALIZED CHEMICAL SUBSTANCE CONTROL COSTS 6-12
7-1: MULTI-MEDIA PROGRAMS CAPITAL COSTS 7-6
7-2: MULTI-MEDIA PROGRAMS OPERATING COSTS 7-8
7-3: ANNUALIZED MULTI-MEDIA PROGRAMS COSTS 7-11
8-1: TOTAL CAPITAL COSTS ASSUMING PRESENT IMPLEMENTATION 8-16
8-2: TOTAL OPERATING COSTS ASSUMING PRESENT IMPLEMENTATION ... 8-18
8-3: TOTAL ANNUALIZED COSTS ASSUMING PRESENT IMPLEMENTATION . . 8-20
8-4: TOTAL CAPITAL COSTS ASSUMING FULL IMPLEMENTATION 8-26
8-5: TOTAL OPERATING COSTS ASSUMING FULL IMPLEMENTATION 8-27
8-6: TOTAL ANNUALIZED COSTS ASSUMING FULL IMPLEMENTATION 8-28
8-7: TOTAL FEDERALLY-MANDATED CAPITAL COSTS ASSUMING FULL
IMPLEMENTATION 8-31
November 1990
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List of Tables xvii
8-8: TOTAL FEDERALLY-MANDATED OPERATING COSTS ASSUMING FULL
IMPLEMENTATION 8-33
8-9: TOTAL ANNUALIZED FEDERALLY-MANDATED COSTS ASSUMING FULL
IMPLEMENTATION 8-35
8-10: TOTAL CAPITAL COSTS ASSUMING PRESENT IMPLEMENTATION BY
FUNDING SOURCE 8-41
8-11: TOTAL OPERATING COSTS ASSUMING PRESENT IMPLEMENTATION BY
FUNDING SOURCE 8-45
8-12: TOTAL ANNUALIZED COSTS ASSUMING PRESENT IMPLEMENTATION BY
FUNDING SOURCE 8-49
8-13: PRIVATE CAPITAL COSTS OF AIR AND WATER POLLUTION CONTROL .. 8-61
8-14: PRIVATE ANNUALIZED COSTS OF AIR AND WATER POLLUTION
CONTROL 8-62
8-15: TOTAL CAPITAL COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF
REGULATION 8-68
8-16: TOTAL OPERATING COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF
REGULATION 8-72
8-17: TOTAL ANNUALIZED COSTS ASSUMING FULL IMPLEMENTATION BY TYPE
OF REGULATION 8-76
8-18: TOTAL CAPITAL PLUS OPERATING EXPENDITURES ASSUMING FULL
IMPLEMENTATION 8-88
8-19: TOTAL CAPITAL PLUS OPERATING EXPENDITURES ASSUMING PRESENT
IMPLEMENTATION 8-92
9-1: NON-HOUSEHOLD CAPITAL PLUS OPERATING EXPENDITURES 9-19
9-2: CAPITAL PLUS OPERATING EXPENDITURES FOR SOME OECD COUNTRIES
AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT 9-21
9-3: POTENTIAL INCREASES IN ANNUAL CHARGES BY CITY SIZE BY THE YEAR
2000 9-22
10-1: NATIONAL AIR EMISSIONS ESTIMATES BY SOURCE CATEGORY FOR
SELECTED YEARS 1940-1988 10-26
10-2: EFFECTS OF AIR POLLUTION CONTROLS ON 1984-1988 EMISSIONS 10-28
10-3: MUNICIPAL WASTE DISCHARGES IN SELECTED YEARS 1960-1988 10-29
10-4: INDUSTRIAL WASTE DISCHARGES IN 1973 AND 1982-1987 10-30
10-5: NON-POINT SOURCE DISCHARGES IN 1973 AND 1980 10-31
10-6: RCRA HAZARDOUS WASTE GENERATION AND MANAGEMENT IN 1981 AND
1985 10-32
10-7: HAZARDOUS WASTE HANDLED BY SELECTED COMMERCIAL FIRMS, 1983-
1987 10-33
10-8: SELECTED EPA SUPERFUND ACTIONS, 1981-1988 10-34
10-9: THE EXISTING UNDERGROUND STORAGE TANK WORLD 10-35
10-10: NEW GENERATION UNDERGROUND STORAGE TANK PRODUCTION, 1980-
1987 10-36
10-11: U.S. PRODUCTION OF SELECTED CHEMICALS, 1960-1972 10-37
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xviii Environmental Investments
10-12: U.S. CONVENTIONAL PESTICIDE USAGE, TOTAL AND ESTIMATED
AGRICULTURAL SECTOR SHARE 10-38
10-13: U.S. ANNUAL VOLUME OF PESTICIDE USAGE, BY TYPE, 1979-1988 10-39
10-14: NUMBER OF CHEMICALS REGISTERED FOR THE FIRST TIME UNDER FIFRA,
BY TYPE, 1967-1988 10-40
November 1990
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XIX
ACKNOWLEDGMENTS
The EPA Workgroup established by the Steering Committee for this project has been composed of
the following representatives of EPA offices:
Office
Member
Air and Radiation
Allen Basala
John Cabaniss
David Rowson
External Affairs
Margery Knight
Pesticides
Allen Jennings
Policy, Planning and Evaluation
Alan Carlin
Ralph Luken
Research and Development
Ronnie Levin
Solid Waste and Emergency Response
Richard Braddock
Debra Dobkowski
Arthur Weissman
Toxic Substances
Bob Lee
Michael Shapiro
Water
Avrum Marks
Many people both inside and outside EPA contributed to writing this report, which has been truly
a cooperative enterprise requiring many hours by a great many people. It is not possible to list all
of them. However, the EPA offices, staff, contractors, and grantees listed below were primarily re-
sponsible for writing each section of this report. It should be noted that the listing is in alphabetical
order on the basis first of the name of the organization and then of the individual, so there the listing
does not indicate relative contribution.
Section
Organization
Individuals
1
Environmental Law Institute
Paul Scodari
EPA
Alan Carlin
2
Environmental Law Institute
Paul Scodari
EPA
Alan Carlin
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XX
Environmental Investments
Section
Organization
Individuals
3
Apogee Research, Inc.
Environmental Law Institute
EPA
Don Garner
Harry Bondareff
Paul Scodari
Alan Carlin
4
Apogee Research, Inc.
Environmental Law Institute
EPA
Don Garner
Paul Scodari
Alan Carlin
5
Apogee Research, Inc.
Environmental Law Institute
EPA
Don Garner
Paul Scodari
Alan Carlin
6
Apogee Research, Inc.
Environmental Law Institute
EPA
Don Garner
Paul Scodari
Arnold Aspelin
Mark Dreyfus
James Long
7
Apogee Research, Inc.
EPA
Don Garner
Alan Carlin
8
Apogee Research, Inc.
Environmental Law Institute
EPA
Don Garner
Paul Scodari
Alan Carlin
9
EPA
Alan Carlin
10
Independent consultant
Environmental Law Institute
EPA
David Zoellner
Paul Scodari
Ralph Luken
Appendices
A
Environmental Law Institute
Paul Scodari
B
Apogee Research, Inc.
Don Garner
C
Environmental Law Institute
E. H. Pechan & Associates
Harry Bondareff
Jim Wilson
D
EPA
Reed Johnson
E
EPA
Brett Snyder
F
Apogee Research, Inc.
Wade Miller Associates, Inc.
Don Garner
John Cromwell
November 1990
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Acknowledgments
xxi
Section
Organization
Individuals
G
Apogee Research, Inc.
Don Garner
H
Environmental Law Institute
Paul Scodari
I
Environmental Law Institute
Peter Gray
Paul Scodari
EPA
Mark Dreyfus
James Long
J
Environmental Law Institute
Peter Gray
Paul Scodari
EPA
Arnold Aspelin
Although not primarily responsible for individual sections, many other individuals made
substantial contributions to this Report. These include the following:
Individual
Organization
Kit Farber
Environmental Protection Agency and U.S. Depart-
ment of Commerce, Bureau of Economic Analysis
(BEA)
Fred Kappler
Department of Commerce, BEA
Anne Grambsch
Environmental Protection Agency
Elizabeth Miner
Environmental Protection Agency
Gary Rutledge
Department of Commerce, BEA
Particular thanks are due to Harry Bondareff, Don Garner, and Paul Scodari for continuing
assistance over almost two years in solving the many problems that arise in preparing as complicated
a report as this.
Alan Carlin
Science, Economics and Statistics Division
Office of Regulatory Management and Evaluation
Office of Policy, Planning and Evaluation
November 1990
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1-1
1. INTRODUCTION
Since the early 1970s, the U.S. Environmental Protection Agency (EPA) has helped carry out the
national mandate to restore and protect our environmental resources. It has proven to be a massive
undertaking. The Federal government, states and localities, and the private sector have all
participated in this effort and expended considerable resources to implement and comply with
environmental programs.
This report presents estimates of historical pollution control expenditures and projected future
costs for each public sector and the private sector. The time period covered includes the years
1972-2000. Estimates of capital costs, operation and maintenance costs, and total annualized costs
are presented for five categories of environmental media. The report also uses the estimates to
provide some comparisons of U.S. pollution control costs with those of several Western European
nations, and to raise certain issues concerning costs that appear likely to prove important over the next
several years.
In addition, the report presents some historical data on pollutant emissions and ambient pollution
levels—the "output" of pollution control expenditures. These data are indicators of the level of envir-
onmental quality over time that are not readily comparable to the monetary cost estimates presented
in this report. Reduced pollutant emissions and improved ambient environmental quality have
resulted in substantial and valuable national benefits in the form of improved human health, recrea-
tional opportunities, visibility, and general environment integrity, among others. An ideal
comparison of the costs and benefits of pollution control would require that these benefits be
identified, quantified, and monetized. This is a much more difficult task than showing historical
trends in pollution loadings and ambient pollution levels and is beyond the scope of this report.
Ongoing EPA research focuses on estimating and monetizing the quantifiable benefits of aggregate
pollution control efforts; the results of this research will be reported in future publications in this
series.
The remainder of this chapter discusses the nature and scope of the cost estimates, the categories
of costs considered, and conventions used throughout the analysis. Chapter 2 examines briefly the
data sources used. The cost estimates are presented by media in Chapters 3 through 7. Total costs
are presented in Chapter 8 along with a discussion of major sources of uncertainty in these estimates.
Conclusions and data on environmental quality trends are presented in Chapters 9 and 10,
respectively. More detailed documentation for the cost estimates and data sources are provided in
the Appendices A-J.
1.1. DEFINITION OF COSTS CONSIDERED
1.1.1. Scope of Costs
The Clean Air and Water Acts require the Administrator of the EPA to periodically collect and
report to Congress estimates of the national costs to all sectors—both public and private—of carrying
November 1990
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1-2
Environmental Investments
out the respective Acts.1 This report presents cost estimates that fulfill these requirements. The report
goes beyond the scope of these statutory directives, however, to provide cost estimates for all EPA
programs pursuant to each of the major Federal environmental pollution control statutes. This
provides a picture of the total direct costs of all Federal pollution control efforts, and permits cost
comparisons across environmental media and major EPA program areas.
In addition, this report includes the costs of state, local, and private pollution control programs
that are closely related to areas for which EPA currently has responsibility and are being pursued for
the same purposes—pollution control and improved environmental quality. The most significant of
these added costs are for local government and private sector trash collection and disposal. Federal
legislation in the solid waste area is concerned primarily with the regulation of solid waste disposal
facilities. Yet, local governments and private entities are involved with the full range of solid waste
activities, including collection, handling, storage, treatment, and final disposal. Though only a
relatively small portion of the total costs for these activities are incurred as a result of Federal
legislation, all solid waste costs are included in this report. This is done on the grounds that all such
expenditures contribute to pollution control and improved environmental quality.
This definition of costs excludes those associated with activities not directly related to pollution
control. The costs of Federal environmental programs that are not pollution control programs, such
as wildlife conservation and land management, are not included. In addition, the costs of non-
pollution control aspects of programs that do involve pollution control are excluded. The cost of
supplying drinking water, for example, is not considered an environmental cost in this report since
the provision of drinking water (laying pipes and pumping water) does not contribute to pollution
control. Only the costs of improving drinking water quality are included in this report. Another
example of costs excluded are those associated with the treatment of incoming water used in
manufacturing processes. In this case, water is treated not to improve environment quality, but rather
to make it better suited to production requirements.
1.1.2. Nature of Costs
The costs presented in this report represent estimates of direct regulatory implementation and
compliance costs. They are the first-order, out-of-pocket costs to those entities that implement
control measures and undertake compliance activities. For example, the private costs associated with
existing programs represent the before-tax expenditures associated with all compliance activities,
including the purchase, installation and operation and maintenance of existing pollution control equi-
pment; the private costs of new and future programs represent, for the most part, projections of
before-tax capital investment and operation and maintenance costs calculated using engineering
analyses.
These direct costs are an imperfect proxy for the social costs of pollution control regulation. The
true social costs of pollution control are represented by the total value that society places on the goods
1 Clean Air Act, Section 312(a) and Clean Water Act, Section 516(b).
November 1990
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Introduction
1-3
and services foregone as a result of resources being diverted to environmental protection.
Compliance costs do not fully reflect social costs because they neglect direct regulatory impacts that
do not involve out-of pocket costs as well as the intertemporal and secondary effects of environmental
protection. In other words, they do not account for the dynamic, general equilibrium effects created
throughout the economy that impose costs on industries and households not directly affected by
regulation. Environmental protection imposes costs on virtually all economic entities—including the
general public—that are largely hidden. Examples of social costs imposed by pollution controls that
are not reflected in direct compliance cost estimates include lost or delayed production and consump-
tion opportunities, reduced economic productivity, and higher price inflation. Some recent research
suggests that compliance cost estimates may understate substantially the true long-term costs of
pollution control.2
1.2. COST CATEGORIES
The cost estimates are broken down as follows (and discussed in the sections of the report indi-
cated):
1.2.1. By economic type;
1.2.2. By environmental medium;
1.2.3. By the sector directly incurring the cost;
1.2.4. By pollutant controlled;
1.2.5. By mandate (Federal or other);
1.2.6. By new and existing regulations; and
1.2.7. By year.
1.2.1. Costs by Economic Type
Two basic types of costs are included to represent implementation and compliance costs:
• capital costs, and
• operating costs.
From these, two aggregate cost measures are derived—annualized costs and total expenditures.
Annualized costs are the aggregate cost measure used throughout most of the Report. The first table
at the end of each media chapter and in most of the groups of total cost tables shows capital costs; the
second shows operating costs; the third shows annualized costs. Total expenditures represent the sum
of capital and operating costs. They are used only in Tables 8-18 and 8-19 of Chapter 8 and in
Sections 9.1.1 through 9.1.3 of Chapter 9. The Report attempts to minimize confusion by referring
2 See, for example: M. Hazilla and R. Kopp, The Social Cost of Environmental Quality
Regulations: A General Equilibrium Analysis, Discussion Paper QE89-11, Resources for the
Future, Washington, DC, March 1989.
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1-4
Environmental Investments
to capital plus operating costs as expenditures rather than costs. Further discussion of total
expenditures can be found in these Sections.
The definitions of capital and operating costs follow those of the primary data sources used—The
U.S. Department of Commerce Government Finances reports3 and "Pollution Abatement and Control
Expenditures" articles.4
Capital costs include acquisitions of plant and equipment (both replacement and expansion) and
expenditures for construction in progress. They are chargeable to an establishment's accounts for
plant and equipment and subject to amortization. Expenditures for research and development are
excluded. For the purpose of analyzing the impact of demands for capital on financial markets, cap-
ital costs are attributed to the years in which the demand for capital occurred or is expected to occur.
Capital costs as defined by the Commerce Department also include the costs of changes in production
processes that reduce or eliminate the generation of pollutants, through material substitution,
improved catalysts, reuse of waste or water, and equipment alteration.
Operating costs include all costs and expenses for the operation and maintenance of pollution
abatement processes, including spending for materials, equipment leasing, parts and supplies, direct
labor, fuel and power, services provided by private contractors, and research and development.
Operating costs exclude costs associated with plant and equipment financing and depreciation,
expenditures for health and safety, and payments to governmental units.
Government costs are also presented as outlays for capital and operating costs. All governmental
costs for program implementation and administration are listed as operating costs.
As mentioned above, annualized costs, although not calculated and reported by the Commerce
Department, are the principal aggregate cost presented in most of the Report. These are the sum of
the operating costs for the year in question plus amortized capital costs, which include interest and
depreciation associated with accumulated capital investment. Amortized (or annualized) capital costs
represent the real resource costs of tying-up funds in the purchase and installation of capital equip-
ment or other fixed assets required by environmental regulation. Annualized capital costs are com-
puted using three rates of amortization—three, seven, and ten percent—and the following assump-
tions with regard to life of capital investment for different program areas:
3 U.S. Department of Commerce, Bureau of the Census, Government Finances, various years.
4 U.S. Department of Commerce, Bureau of Economic Analysis, various articles often entitled
"Pollution Abatement and Control Expenditures," published periodically in the Survey of
Current Business.
November 1990
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Introduction
1-5
Mobile source air pollution control capital
Radiation control capital
Water pollution control capital (except
drinking water)
Superfund remediation capital
Underground storage tank capital
All other capital
10 years;
25 years;
30 years;
30 years;
30 years;
20 years.
The assumed life of capital for mobile sources is based on the estimated average life of motor
vehicles. The stationary source air and water capital lives are based on discussions with industry
experts as described in Kappler and Rutledge (1982).5 The capital lives assumed for all other
programs except radon control correspond to assumptions commonly made by EPA in Regulatory
Impact Analyses for each respective program area. In the case of radiation, a 25 year capital life is
based on the assumptions that most radiation control capital is for the purpose of reducing radon
exposure, that the average house life is 50 years, and that the average home age at the time of radon
remediation is 25 years. The three amortization rates used for annualization were chosen to include
the range of most interest to readers.
1.2.2. Costs by Environmental Medium
The cost estimates are categorized into three "environmental media"—air, water, and land— as
well as useful chemicals and multi-media. The fifth category, labelled "multi-media", consists of
costs that do not fit well in any of the other four categories. Except in the case of chemicals, costs
are allocated to the environmental medium that is most directly affected by the pollution controls
associated with expenditures. There are cases, of course, where costs are incurred to reduce the
threats posed by pollution that initially is released into one medium, but later impacts another. For
the purposes of this report, however, costs to reduce pollutant emissions directly into a particular
medium are allocated to that medium. Potentially hazardous chemicals such as pesticides differ from
the pollutants associated with the other media because they have economic value and are not simply
waste products. The costs of controlling risks from such chemicals are provided in the chemicals
category.
As mentioned above, the allocation of pollution control costs among different environmental
media categories is bound to cause some overlap and confusion due to the cross-media nature of
many environmental problems and the control programs used to address them. This is particularly
true for many of the program areas included under the "land" medium, which have as one of their
most important objectives the prevention and reduction of groundwater contamination. Yet, because
programs such as those relating to hazardous waste disposal are concerned with pollution that is
initially released primarily onto land, their costs are allocated to the land medium. Despite problems
of overlap, it was felt that the advantages of this categorization scheme favored its use.
5 Frederick G. Kappler and Gary L. Rutledge, "Stock of Plant and Equipment for Air and
Water Pollution Abatement, 1980-81," Survey of Current Business, pp. 18-25, November, 1982.
November 1990
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1-6
Environmental Investments
The four major environmental media categories also correspond roughly to the four major
program offices within EPA, and encompass the major pollution control laws that EPA administers.
The costs associated with the statutes listed below are discussed in the sections indicated.6
3. Air pollution and radiation control expenditures pursuant to:
3.1. Clean Air Act; and
3.2. Radon Gas and Indoor Air Quality Research Act of 1986, Radon Pollution Control Act
of 1988, and earlier acts.
4. Water pollution control expenditures pursuant to:
4.1. Clean Water Act; Marine Protection, Sanctuaries and Research Act; and
4.3. Safe Drinking Water Act.
5. Land pollution control expenditures pursuant to:
5.4. Resource Conservation and Recovery Act; and
5.5. Comprehensive Environmental Response, Compensation, and Liability Act.
6. Chemical control expenditures pursuant to:
6.1. Toxic Substances Control Act; and
6.2. Federal Insecticide, Fungicide, and Rodenticide Act.
7. Non-media-specific expenditures, including those pursuant to:
7.2. Energy Security Act; and
7.4. Title III of the Superfund Amendments and Reauthorization Act.
Other non-media-specific EPA costs that are administered independently of the above
programs are included in the following sections:
7.1. Management and support; and
7.3. Interdisciplinary.
The major exceptions to these allocations occur in the few cases where a section of a law is
administered by an EPA office other than the one that administers most of the law. In that case,
the cost is accounted for where possible under the office that administers the section involved
rather than the office that has primary responsibility for the law as a whole.
November 1990
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Introduction
1-7
1.2.3. Costs by Sector
The cost estimates are also broken down by the economic sector that directly incurs them.
Separate categories are included for:
• EPA costs;
• Non-EPA Federal costs;
• State government costs;
• Local government costs; and
• Private sector costs.
This classification is useful because it permits evaluation of the impacts on each of the major
public sectors as well as the private sector. EPA and state government costs are primarily for program
implementation, while non-EPA Federal, local government, and private costs are largely associated
with compliance activities.
1.2.4. Costs by Pollutant
In the case of air pollution control, an attempt was made to break down the cost estimates by
pollutant, providing a sense of the relative control costs for various environmental contaminants.
Unfortunately, data limitations prevented such a breakdown of costs for the other environmental
media.
1.2.5. Costs by Mandate
The report includes costs associated with all Federal pollution control programs as well as all state
and local programs that are closely related to Federal initiatives. In addition, the report includes costs
associated with certain local government activities and private sector initiatives directed towards
improving environmental quality that do not follow from Federal mandates. The local programs
include those solid waste collection and drinking water treatment activities that are not addressed by
Federal laws and regulations. The private sector activities include solid waste collection, and radon
removal in private homes. To distinguish the cost estimates for these programs from others presented
in this report, two separate estimates of total costs are included in the environmental media
categories—one for Federally-mandated costs and one for all costs.
1.2.6. New and Existing Regulatory Costs
Finally, distinctions are made between the following pollution control costs:
• Costs of existing regulations—costs associated with regulations and programs that were
substantially in place by 1987 and have achieved substantially full compliance with standards
or attainment of goals;
November 1990
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1-8
Environmental Investments
• Costs of new regulations—costs estimated to result from new or recently implemented
regulations and programs (i.e., those not substantially in place by 1987), and regulations
currently under development or proposed by EPA; and
• Costs of full implementation—costs that would arise from full attainment or full compliance
with those existing laws, regulations, and programs for which the attainment deadline has
passed but for which there was substantially less than full attainment by 1987. They include
the costs of bringing all cities except Los Angeles and New York into attainment with the
national ambient air quality standard for ozone, and expenditures needed to satisfy the nation's
municipal wastewater treatment needs.
The costs for existing regulations are based on survey data on historical expenditures and
extrapolations from these. New regulation costs are based on ex ante estimates of the costs associated
with new and forthcoming regulations derived in EPA regulatory impact studies. The year 1987 is
selected as the cut-off date because that is the last year for which survey data was available when this
Report was prepared.
The estimates used to represent full implementation costs were derived from recent EPA analyses
of wastewater treatment needs and measures required to reach substantially complete attainment of
ozone air quality standards. Wastewater treatment costs were derived from a report to Congress on
current and future municipal needs and the estimated expenditures required to meet them. The ozone
attainment costs were derived from EPA analyses of the ozone attainment costs associated with the
Administration's original proposed amendments to the Clean Air Act.
In November 1990, President Bush signed the Clean Air Act Amendments of 1990. These
contained provisions which are expected to result in higher costs than those contained in the
Administration's original proposed amendments. As a result, the costs for the Amendments are
expected to be significantly ginger by the year 2000 than the estimates presented in this Report. This
is discussed further in Section 3.1.3.
1.2.7. Costs by Year
Finally, cost estimates are presented for each year over the period 1972-2000. The year 1972 was
selected as the starting date because it represents the first year for which the Commerce Department
collected reasonably complete cost data. The year 2000 was selected as the ending date because it
is near enough so that reasonable cost projections could be made but far away enough to provide a
useful perspective on future cost trends.
1.3. CONVENTIONS USED
Several conventions were followed to avoid double counting intergovernmental transfers, to
project future costs, and to convert cost estimates into constant dollars. These are discussed briefly
below.
November 1990
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Introduction
1-9
1.3.1. Intergovernmental Transfers
Special care was taken to avoid double-counting intergovernmental grants. Such transfers were
subtracted from non-Federal government expenditures for state and local programs that are funded
in whole or part by Federal grants. In addition, for years in which the non-Federal portions of
matching grant programs are not clearly identified in the national statistics, state and local shares were
estimated using matching ratios over years for which data were available.7
1.3.2. Projection Techniques
1.3.2.1. Existing Programs
Projecting future costs for existing programs is an attempt to predict what government and private
sectors will spend to maintain compliance with existing pollution control requirements in the face of
a changing economy and an expanding population.
To keep this task simple, historical pollution control expenditures were linearly regressed against
time and the resulting parameter estimates used to predict costs for future years. Use of this method
assumes that trends in population growth, economic growth, compliance levels, and other factors that
may affect pollution control costs will continue as in the recent past, and will have similar influences
on expenditures. All projections were calculated at the most disaggregated level of detail—municipal
operating expenses for wastewater treatment plants, for example. Aggregations to national totals were
simple arithmetic exercises once the component projections were made.
The estimated equations chosen for projecting costs for any regulation or program were those that
best fit the individual time series data, considering recent trends in the data, the types of spending
involved, and the maturity of the individual program.8 In a number of cases there were one or more
significant changes in trend during the years for which data were available. In such cases, equations
fit on the most recent clearly discernible trend were used. This is illustrated in Figure 1-1 and Table
1-1, which show private capital costs for stationary air pollution control over the years 1972-87.
Since the most recent discernible cost trend in the example is over the years 1983-87, an equation fit
7 Local government statistics on environmental expenditures include those attributable to a
range of local government units, including towns, townships, cities, regional governments, and
special districts.
8 A two-phased model of environmental capital expenditures was assumed. In the early years
following a regulatory program, capital is accumulated rapidly as large numbers of regulated
units make initial investments. In the second phase there is less capital accumulation, most of
which is associated with investments by previously recalcitrant units and expansion due to
economic and population growth. Operating expenses are directly related to the number of units
in compliance, and therefore grow in tandem with capital expenditures.
November 1990
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1-10
Environmental Investments
on those years was used in this report. Trends corresponding to two longer time periods are also
shown for comparison.
One problem with using regression equations based on a small number of data points to
extrapolate costs is the potential for under-or over-estimating future costs for relatively immature
pollution control programs. Over-estimation is a potential problem for programs that were expanding
rapidly during the period used in the model; under-estimation of future costs is a potential problem
for programs that have been slow to develop since their initiation. In general, this does not appear
to be a problem for the relatively old air and water programs, in which relatively few new rules have
been implemented in recent years. The projection problem is probably of greatest concern for certain
existing programs included under the land medium; specifically, the Resource Conservation and
Recovery Act (RCRA) program which regulates all facets of current hazardous waste handling and
disposal activities, and the Superfund hazardous waste remediation program.
RCRA hazardous waste costs increased significantly over the mid-1980s. Cost data for these
years were used in a linear regression model to predict future costs associated with existing rules. The
resulting estimates show significantly increasing future costs for existing hazardous waste programs.
When these estimates are added to estimates of costs associated with new and forthcoming RCRA
rules, the totals may over-estimate hazardous waste costs over the next several years. To check for
potential upward bias in the estimates, a comparison was made between the rates of growth in
projected costs for the existing hazardous waste program and the much older solid waste program.
This comparison showed that the rate of growth in projected hazardous waste costs is less than for
solid waste, and within reasonable bounds over the period 1988-2000. Despite this encouraging
result, there may be some degree of upward bias in the RCRA hazardous waste cost projections.
In the case of the Superfund remediation program, future costs projections were based on cost
estimates for years 1981-1989, which covers the full period of the program's existence. Superfund
costs increased relatively slowly over the first five years, but have increased more dramatically since
1986. Since the costs projections are based on data for the entire period, there is no compelling
reason to think the projections might significantly under- or over-estimate actual future expenditures.
1.3.2.2. New Regulations
For new and not fully implemented regulations and programs, this report used cost estimates
contained in EPA's Regulatory Impact Analyses (RIAs). Capital costs were gathered from the RIAs
associated with new regulations identified in each EPA program area. Future capital costs are
presented both as annual demands for capital and on an annualized basis.
To show the timing of capital costs for new regulations, capital costs were typically spread out
in equal lumps over a relatively few years. This method of showing demands for capital results in
graphs with erratic changes in aggregate capital costs from year to year. In practice, control capital
is typically phased in more gradually over time, imposing smoother demands for capital over a five
to ten year compliance period.
November 1990
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Introduction
1-11
Operation and maintenance (O&M) costs for new regulations were also derived from the RIAs.
For the most part, O&M costs were assumed to begin one year after a capital investment is made and
to continue through the expected useful life of the capital facility. Under these assumptions, annual
O&M costs peak in the year after the last increment of capital is put in place, and continue at this
level throughout the useful life of the capital. In certain cases, only annualized cost estimates were
available for new or forthcoming regulations. In such cases, these estimates were reported under the
O&M cost category.
1.3.3. Price Deflators Used
All cost estimates are shown in 1986 dollars. The price deflators shown in Table 1-1 were used
to convert current dollars in to 1986 dollars. These include indices developed by the Bureau of
Economic Analysis of the U. S. Department of Commerce for air, water, and solid waste costs, and the
GNP implicit price index. For other media and programs, the GNP price index was used for operating
costs, and the Construction Cost index compiled by the Engineering News Record was used for
capital costs.
November 1990
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1-12 Environmental Investments
Fig. I-I: PROJECTION TECHNIQUES ILLUSTRATED
Projected Values
Time Series Values
******* _
Projection Years 1972-1987
¦ ¦ ¦ ¦ Projection Years 1977-1987
Projection Years 1983-1987
(Selected for projections)
SOURCE: Table 3-1
November 1990
-------
Introduction
1-13
Table 1-1: PROJECTION TECHNIQUES ILLUSTRATED
Private Capital Costs for Stationary Air Pollution
Standard Error
35.957
37.513
24.371
Degrees of Freedom
14
9
3
R Squared
0.600
0.840
0.835
Predictor Variables
1972-1987
1977-1987
1983-1987
1972
4,994
4,994
4,994
1973
6,628
6,628
6,628
1974
6,601
6,601
6,601
H
i
1975
6,983
6,983
6,983
s
t
1976
6,387
6,387
6,387
o
1977
6,061
6,061
6,061
r
i
1978
5,908
5,908
5,908
c
a
1979
6,276
6,276
6,276
1
1980
6,288
6,288
6,288
D
s»
1981
5,860
5,860
5,860
41
t
1982
5,508
5,508
5,508
1983
4,425
4,425
4,425
1984
4,433
4,433
4,433
1985
4,207
4,207
4,207
1986
4,090
4,090
4,090
1987
4,122
4,122
4,122
1988
4,148
3,653
3,971
1989
3,984
3,396
3,876
1990
3,819
3,139
3,781
P
r
1991
3,654
2,881
3,686
0
1
1992
3,490
2,624
3,591
J
e
1993
3,325
2,366
3,496
c
t
1994
3,160
2,109
3,401
i
o
1995
2,996
1,851
3,306
n
s
1996
2,831
1,594
3,212
1997
2,666
1,336
3,117
1998
2,501
1,079
3,022
1999
2,337
822
2,927
2000
2,172
564
2,832
SOURCE: Table 3-1
November 1990
-------
1-14 Environmental Investments
Table 1-2: PRICE DEFLATORS INDEXED TO 1986
Year
Gen Indexes
Air Pollution
Water Pollution
Solid Waste
ENR
GNP
Cap
O&M
Govt
Cap
O&M
Govt
Cap
O&M
Govt
0)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
1972
0.408
0.437
0.435
0.310
0.393
0.390
0.341
0.396
0.373
0.388
0.386
1973
0.441
0.461
0.448
0.338
0.418
0.413
0.362
0.426
0.390
0.420
0.418
1974
0.470
0.497
0.504
0.464
0.493
0.471
0.429
0.469
0.432
0.466
0.461
1975
0.515
0.537
0.560
0.508
0.555
0.516
0.490
0.496
0.489
0.495
0.494
1976
0.559
0.566
0.595
0.531
0.591
0.549
0.528
0.529
0.523
0.525
0.524
1977
0.599
0.594
0.629
0.576
0.631
0.589
0.572
0.569
0.568
0.552
0.553
1978
0.646
0.632
0.673
0.617
0.674
0.638
0.616
0.629
0.622
0.579
0.583
1979
0.699
0.685
0.735
0.735
0.740
0.704
0.676
0.702
0.684
0.635
0.639
1980
0.753
0.748
0.803
0.889
0.817
0.765
0.769
0.757
0.762
0.681
0.687
1981
0.823
0.818
0.876
0.986
0.890
0.839
0.854
0.816
0.848
0.778
0.782
1982
0.890
0.869
0.923
1.007
0.943
0.884
0.911
0.851
0.907
0.835
0.840
1983
0.947
0.904
0.939
1.018
0.956
0.922
0.938
0.900
0.947
0.876
0.882
1984
0.965
0.941
0.966
1.043
0.989
0.968
0.976
0.928
0.968
0.920
0.924
1985
0.977
0.974
0.984
1.064
0.998
0.994
0.995
0.983
0.970
0.957
0.959
1986
1.000
1.000
1.000
1.000
1.000
1.000
1.000
1.000
1.000
1.000
1.000
1987
1.026
1.035
1.014
1.016
1.004
1.015
1.009
1.031
1.053
1.037
1.040
1988
1.052
1.071
1.122
1.224
1.143
1.123
1.145
1.107
1.143
1.084
1.090
1989
1.072
1.113
1.165
1.280
1.189
1.170
1.196
1.153
1.193
1.130
1.136
1990
1.090
1.153
1.209
1.335
1.235
1.216
1.246
1.199
1.243
1.175
1.182
Footnotes to Table 1-2 by column:
(2) Construction Cost Index history, 1906-1990, Engineering News Record, March 26,1990 (used for capital costs where
BEA indexes were not available) indexed to 1986.
(3) Fixed-weighted price indexes for gross national product, 1959-1987 Economic Report of the President 1988, Table
B-4 (used for operating and maintenance costs where BEA indexes were not available) indexed to 1986. Indexes for
1989 and 1990 based on inflation factors of 1.036 and 1.039 respectively.
(4-12) Figures in columns 4 through 12 are selected fixed-weighted price indexes constructed by the U.S. Department
of Commerce, Bureau of Economic Analysis, indexed to 1986. The 1972-1982 indexes are taken from Farber,
"Pollution Abatement and Control Expenditures," Survey of Current Business, July, 1986, Table 9. The 1983-
1987 indexes are taken from Farber, op. cit., 1989, Table 6. Indexes for 1988-1990 are linear projections based
on 1972-1987 data.
(4.7.610) Cap: Business pollution control capital costs (line 49)
(5.8.611) O&M: Business pollution control operating and maintenance costs (line 50)
(6.9.612) Govt: Government pollution control capital costs and operating and maintenance costs (line 51)
November 1990
-------
2-1
2. DATA SOURCES
Table 2-1 presents an overview of the data sources and methodologies used to derive the cost
estimates. It differentiates between actual cost data for years 1972-87 and estimated costs for years
1988-2000.
As discussed in sections 1.2.6 and 1.3.2, there is a basic difference between the estimates of future
costs for established programs and costs for new and forthcoming regulations. To estimate costs for
established regulations, estimates of recent historical costs for pollution control programs were
extrapolated to future years, usually 1988-2000. This projection method assumes that future annual
costs for existing programs will follow recent trends. For new and forthcoming regulations, cost
estimates for years 1988-2000 are based primarily on data derived from EPA regulatory analyses.
Also provided are cost estimates that reflect full compliance with certain established programs
for which the deadline for complete implementation has passed, but compliance is predicted to be less
than full even with predicted future expenditures. This is in accordance with the Clean Air and Water
Act provisions requiring estimates of full compliance costs. All the above is summarized in Table
2-1.
The cost estimates were derived from five principal data sources. These are listed below along
with the sections in which they are discussed.
2.1. U.S. Department of Commerce survey data on historical private and government
expenditures;
2.2. EPA budget justification data on historical EPA expenditures;
2.3. EPA regulatory impact analyses data for new and proposed regulations; and
2.4. Special EPA analyses data for programs not covered by other data sources.
Table 2-2 lists the data sources for the historical cost estimates in more detail corresponding to
the organization of the remainder of this report.
2.1. U.S. DEPARTMENT OF COMMERCE SURVEY DATA
The basic source of pre-1988 data for private, non-EPA Federal, state, and local costs is the U.S.
Department of Commerce. Data on private expenditures over the years 1959-1987 were obtained
from a series of articles entitled "Pollution Abatement and Control Expenditures" (PACE reports)
which are published periodically in the Survey of Current Business by the Bureau of Economic
Analysis (BEA). These articles compile and organize data derived from a number of sources,
including two key agency surveys—the "Pollution Abatement Costs and Expenditures Survey"
(PACE Survey) and the "Pollution Abatement Plant and Equipment Survey," (PAPE Survey)—which
are conducted annually by the Census Bureau for BEA.
November 1990
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2-2
Environmental Investments
The basic source of past non-EPA Federal expenditures for pollution control is surveys completed
by each Federal agency detailing their pollution control expenditures. Completed surveys are
submitted to BEA for inclusion in the PACE reports.
Data on state and local expenditures for the years 1972-87 are primarily from the results of an
annual survey on governmental expenditures conducted by the Census Bureau and published in a
series of annual reports entitled Government Finances. The data, which are reported for fiscal years,
were converted into calendar years.1 Federal grants in each program area were subtracted from total
expenditures, and interest on debt, where reported, was netted from annual expenditure data to isolate
O&M costs.
Data on state and local expenditures for air pollution control were obtained from the PACE
reports published in the Survey of Current Business.
2.2. EPA BUDGET JUSTIFICATION DATA
The main source of data for EPA expenditures is the Justification of Appropriation Estimates for
Committee on Appropriations. Outlays are shown for Fiscal Years 1972 through 1989. Budget
projections of outlays are shown for Fiscal Years 1990 and 1991, as reported in an annual attachment
entitled "Summary of Budget Authority, Obligations, Outlays, and Workyears by Media."
2.3. REGULATORY IMPACT ANALYSES DATA
The basic source of data for new and forthcoming regulations are Regulatory Impact Analyses
(RIAs) and similar EPA analyses of major EPA regulations. RIAs have been prepared prior to the
issuance of each major regulation since 1981, and include data on estimated compliance costs and
benefits. Similar analyses for costs only were issued under different names before 1981. Table 2-3
lists those regulations for which RIA cost estimates have been used in this report; Appendix A con-
tains summary information for each of these rules.
2.4. SPECIAL EPA ANALYSES DATA
Where the above data sources did not provide adequate or reliable data, special analyses
conducted by EPA program offices or contractors were used. In general, this is the case for those
programs not involving air, water, or solid waste, since these are the media covered by the Commerce
Department data. Cost estimates for the Superfund program, for example, relied on a special analysis.
In addition, a special EPA analysis was undertaken to estimate the costs of air mobile source control
because of particular EPA expertise in this area, and because the Commerce Department data on
mobile sources are not based on direct Commerce Department survey data.
1 To derive estimates for calendar year 1986, for example, one-half of the reported Fiscal Year
1986 estimate was added to one-half of the reported fiscal year 1987 estimate.
November 1990
-------
Data Sources
2-3
Table 2-1: PRINCIPAL DATA SOURCES BY TIME PERIOD
Program/
Sector
1972-1987
198$
-2000
Current
Implementation
Full Implementation
Existing Regulations
EPA
EPA Budget (see section
2.2)
Projections based on
historical costs (see sec-
tion 1.3.2.1)
Not applicable
Non-EPA Fed-
eral
Commerce—BEA (see
section 2.1)
Projections based on
historical costs
Not applicable
State Govern-
ment
Commerce—Government
Finances (see section
2.1)
Projections based on
historical costs
Not applicable
Local Govern-
ment
Commerce—Government
Finances (see section
2.1)
Projections based on
historical costs
Special analysis (see sec-
tion 2.4)
Private
Commerce—BEA (see
section 2.1)
Projections based on
historical costs
Special analysis (see sec-
tion 2.4)
New regm
Nations and programs
All Sectors
Not applicable
Regulatory Impact
Analysis estimates (see
section 2.3)
Not applicable
November 1990
-------
2-4 Environmental Investments
Table 2-2: DATA SOURCES FOR HISTORICAL COSTS BY ENVIRONMENTAL MEDIUM
Sector Impacted
Report Section
Program
EPA
Non-EPA
State
Local
Private
3.
Air & Radiation
3.1
Air
3.1.1
Stationary Sources
Budget outlays
BEA surveys
Not available
Not available
Commerce--BEA
3.1.2
Mobile Sources
Budget outlays
Not available
Not available
Not available
Special analysis
4.
Water
4.1
Water Quality
4.1.1
Point Source
Budget outlays
BEA surveys
Census Govern-
ment Finances—
Sanitation + 20%
of natural resourc-
es net of Federal
Grants
Census Govern-
ment Finances—
Sanitation + 20%
of natural resourc-
es net of Federal
Grants
Commerce—BEA
4.1.2
Non-Point Source
Special analysis
Special analysis
Special analysis
Special analysis
Special analysis
4.2
Drinking Water
Budget outlays
Not available
Special analysis
using ASDWA
survey
Special analysis
using AWWA
surveys; Com-
merce study; ODW
EI As
Special analysis
5.
Land
5.1
Solid Waste
OSW Subtitle D
estimate
BEA surveys
Census Govern-
ment Finances—
sanitation other
than sewage
Census Govern-
ment Finances—
sanitation other
than sewage
Commerce—BEA
5.2
Hazardous Waste
OSW budget mi-
nus Subtitle D
Special analysis
Not available
Not available
Commerce—BEA
5.3
LUST
Trust Fund outlays
Not available
Not available
Not available
Not available
5.5
Superfund
Budget outlays
Special analysis
Special analysis
Not available
Special analysis
6.
Chemicals
6.1
Toxic Substances
Budget outlays
BEA surveys
Not available
Not available
Special analysis
6.2
Pesticides
Budget outlays
BEA surveys
Special analysis
Not available
Special analysis
7.
Multi-Media
7.1
Management
Budget outlays
Not available
Not available
Not available
Not available
7.2
Energy
Budget outlays
Not available
Not available
Not available
Not available
7.3
Interdisciplinary
Budget outlays
Not available
Not available
Not available
Not available
7.4
SARA Title III
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
7.5
Undesignated
Not available
BEA surveys
Not applicable
Not applicable
Not applicable
(Footnotes to Table 2-2 on next page)
November 1990
-------
Data Sources
2-5
Explanation of Terms Used in Table 2-2
ASDWA survey: Association of State Drinking Water Agencies, "Survey of State Programs."
AWWA surveys: American Water Works Association (AWWA), "Research Foundation Survey on
Trihalomethanes" and "Member Survey: 1984 Water Utility Operating Data".
Commerce study: U.S. Department of Commerce, The 1977 Market for Water and Wastewater
Treatment Equipment.
ODW-EIA: U.S. EPA Office of Drinking Water, various "Economic Impact Analyses" for
regulated drinking water pollutants.
Census—Government Finances: U.S. Department of Commerce, Bureau of the Census, Government
Finances, various years.
Commerce—BEA: U.S. Department of Commerce, Bureau of Economic Analysis, various articles
often entitled "Pollution Abatement and Control Expenditures," published annually in the Survey
of Current Business.
BEA surveys: Data from Federal Funding for Pollution Control survey forms completed by each
Federal Agency and submitted to the Bureau of Economic Analysis, U.S. Department of Commerce.
OSW budget: Budget for the Office of Solid Waste, U.S. Environmental Protection Agency.
November 1990
-------
2-6
Environmental Investments
Table 2-3: INDIVIDUAL REGULATIONS INCLUDED IN THE COST ANALYSIS
Report Section/Media/Regulation
Reason for Inclusion
3.
Air and radiation
3.1
Air
3.1.1
Stationary sources
Particulate Matter National Ambient Air Quality Standard
New
Lead National Ambient Air Quality Standard (Revisions)
Proposed
Acid Rain Control
In development
Toxic Substances Control
In development
Expeditious Attainment of Ozone National Ambient Air Quality
Standard
Non-
attainment—existing
Stratospheric Ozone Protection Plan
New
3.1.2
Mobile Sources
Fuel Volatility Rule
New
Diesel Fuel Standards
New
Nitrogen Oxides and Particulate Standards for Light-Duty
Trucks & Heavy-Duty Engines
New
Expeditious Attainment of Ozone National Ambient Air Quality
Standard
Non-
attainment—existing
3.2
Radiation
Radon Advisory
New
November 1990
-------
Data Sources
2-7
Table 2-3A: INDIVIDUAL REGULATIONS INCLUDED IN THE COST ANALYSIS
Report Section/Media/Regulation
Reason for Inclusion
4.
Water
4.1
Water Quality
Treatment of Municipal Wastewater
Non-at-
tainment—existing
Pretreatment Requirements
New
Sewage Sludge Disposal—Technical Requirements
Proposed
Stormwater Management
Proposed
Effluent Limitation Guideline: Organic Chemicals and Plastic
Fibers Industry
New
Effluent Limitation Guideline: Offshore Oil and Gas Industry
Proposed
4.4
Drinking Water
Volatile Organics
New
Fluorides
New
Total Coliforms
New
Surface Water Treatment
New
Phase II Inorganics and Synthetic Organics
Proposed
Lead, Copper, and Corrosion Control
Proposed
Mandatory Disinfection
In development
Radionuclides
In development
Phase IV Inorganics and Synthetic Organics
In development
November 1990
-------
2-8
Environmental Investments
Table 2-3B: INDIVIDUAL REGULATIONS INCLUDED IN THE COST ANALYSIS
Report Section/Media/Regulation
Reason for Inclusion
5.
Land
5.1
Solid Waste
Municipal Landfill Subtitle D Criteria
Proposed
Municipal Waste Combusters Air Standards
In development
Municipal Waste Combusters Ash Disposal
In development
Management of Used Oil
Proposed
5.2
Hazardous Waste
Land Disposal Restrictions—California List Wastes
New
Land Disposal Restrictions—Solvent and Dioxin-Containing
Wastes
New
Land Disposal Restrictions—First Third Wastes
New
Land Disposal Restrictions—Second Third Wastes
New
Land Disposal Restrictions—Third Third Wastes
Proposed
Underground Injection: Solvents and Dioxin Waste Disposal
Restrictions
New
Underground Injection: California List and First Third Waste
Disposal Restrictions
New
Underground Injection: Second Thirds Waste Disposal
Restrictions
New
Underground Injection: Third Thirds Waste Disposal
Restrictions
Proposed
Toxicity Characteristics Rule
Proposed
Location Standards Rule
In development
Corrective Action for Solid Waste Management Units
Proposed
Minimum Technology Rule
New
Hazardous Waste Tanks Rule
New
Small Quantity Generators Rule
New
November 1990
-------
Data Sources
2-9
Table 2-3C: INDIVIDUAL REGULATIONS INCLUDED IN THE COST ANALYSIS
Report Section/Media/Regulation
Reason for Inclusion
5.3
Underground Storage Tanks (USTs)
USTs Containing Petroleum—Financial Responsibility
Requirements
New
USTs Containing Petroleum—Technical Requirements
New
5.5
Superfund
Site Clean-Ups
Less than full
implementation
6.
Chemicals
6.1
Toxic substances
Asbestos in Schools Rule
New
Asbestos in Products Ban/Phasedown
New
7.
Multi-media
7.4
SARA Title III Regulations
Emergency and Hazardous Chemical Inventory Forms and
Community Right-to-Know Reporting Requirements
New
Extremely Hazardous Substances List and Threshold Planning
Quantities; Emergency Planning and Release Notification
Requirements
New
Toxic Chemical Release Reporting; Community Right-to-Know
New
Trade Secret Claims
New
November 1990
-------
3-1
3. COSTS OF AIR AND RADIATION POLLUTION CONTROL
The costs of air and radiation control are broken down into several categories which are discussed
in the sections listed below:
3.1. Air pollution control;
3.1.1. Stationary sources;
3.1.2. Mobile sources;
3.2. Radiation control; and
3.3. Total air pollution and radiation control costs.
Costs are shown in two separate ways—by funding source (government and private) and by
pollutant controlled. Costs by funding source are shown in Tables 3-1 through 3-3. Costs by pollu-
tant are shown in Tables 3-4 through 3-6.
Each group of tables provides data on three types of cost—capital, operation and maintenance,
and total annualized. Capital costs are summarized in Tables 3-1 and 3-4. Operating costs are shown
in Tables 3-2 and 3-5. Annualized costs are contained in Tables 3-3 and 3-6. Annualized costs are
calculated using capital amortization rates of three, seven, and ten percent, and an assumed capital
life of 20 years for stationary sources and ten years for mobile sources.
The discussion that follows focuses on the annualized cost estimates calculated using an
amortization rate of seven percent for capital costs. Annualized costs calculated at a three percent
rate are approximately nine to 15 percent lower, and those calculated at ten percent are approximately
eight to 12 percent higher, than the estimates discussed below.
3.1. AIR POLLUTION CONTROL
EPA regulatory programs governing air pollution control have been carried out in accordance
with the Clean Air Act (CAA) of 1970 as amended in 1977. The program consists of an integrated
approach to attainment of National Ambient Air Quality Standards (NAAQS) for several criteria
pollutants, including: emission control requirements on stationary sources; emission control
requirements on mobile sources; ambient air quality monitoring to assess status; and comprehensive
state and regional air quality planning to assure progress towards attainment. The CAA also provides
for control of specially designated hazardous air pollutants.
In November, 1990 President Bush signed into law the Clean Air Act Amendments of 1990,
which are expected to substantially increase costs to control the precursors of acid precipitation, urban
ozone, and air toxics. This Report was prepared using January 1990 EPA estimates of the original
Administration proposal for revisions to the Clean Air Act. The impact of the new Amendments on
total costs will be discussed further in Section 3.1.3 below.
November 1990
-------
3-2
Environmental Investments
Annualized costs for stationary sources, mobile sources, and both sources combined, are discussed
separately below. Within each category is a discussion of "full implementation" costs, which
represent the costs of substantially attaining the current NAAQS for ozone by the year 2000.
3.1.1. Stationary Sources
Stationary source air pollution control costs, on an annualized basis, have increased steadily since
the passage of the Clean Air Act in 1970. The biggest jump in costs occurred over the years
immediately following passage of the Act, driven primarily by large expenditures for new capital
equipment. Stationary source costs more than doubled between the years 1972 and 1979, reaching
an estimated $12.9 billion. In the years following, annualized costs increased at a less dramatic rate
due to falling annual expenditures for new capital, reaching $19 billion in 1987.
Stationary source costs are expected to rise significantly over the 1990s as the nation makes
another push to attain existing ozone standards, and introduces new acid rain control measures and
regulations on a large number of hazardous air pollutants. The Administration's proposed strategies
for addressing ozone non-attainment, acid rain and air toxics, if enacted and implemented within the
next few years, would push total annualized costs for stationary sources up to an estimated $25 billion
by 1995, and to $29.7 billion by the year 2000.
The additional costs for attaining the ambient air standard for ozone in those urban areas currently
not meeting the standard are presented in the "full implementation" cost category (discussed in
Section 1.2.5) since they represent costs of meeting existing standards. The costs of regulating acid
rain precursors and hazardous air pollutants, on the other hand, are included under the "new
regulations" cost category since these are more in the nature of new programs.
Only partial information is available on historical stationary air pollution costs broken down by
pollutant controlled, and is limited to private sector costs. This information is derived from capital
cost estimates for the years 1973-86 reported in the Commerce Department's PACE reports published
in the Survey of Current Business. All other air costs by pollutant were estimated using various
assumptions and procedures which are detailed in Appendix B. Due to the many assumptions required
to derive total air pollution control costs by pollutant controlled, these estimates should be viewed
as highly uncertain.
The available data shows that particulates and sulfur oxides together accounted for over 80
percent of total annualized stationary source control costs in the first few years after passage of the
Clean Air Act. While these two pollutants maintained a large share of total expenditures for all
pollutants throughout the 1970s, the costs of controlling volatile organic compounds (VOCs)
increasingly took on added significance. By 1980, expenditures for the control of particulates
accounted for an estimated 55 percent of total annualized costs, sulfur oxides 17 percent, and VOCs
15 percent.
In the 1980s, expenditures for the control of VOCs became even more significant. By 1988, the
share of total costs accounted for by particulates had decreased to 48 percent, the share for sulfur
November 1990
-------
Costs of Air and Radiation Pollution Control
3-3
oxides had decreased to 15 percent, while the share of total costs accounted for by VOCs had in-
creased to 21 percent. The upward trend in VOC control costs is expected to continue into the future
as the nation directs its air pollution control efforts towards attainment of the existing ambient air
quality standard for ozone.
In the future, VOCs may account for the largest share of total control costs of any particular
pollutant. Additionally, expenditures for the control of hazardous air pollutants and sulfur oxides
would increase significantly during the 1990s if the Administration's strategies for addressing acid
rain and air toxics are enacted and implemented within the next few years.
3.1.2. Mobile Sources
The mobile source costs presented in this report represent the results of a special analysis prepared
for EPA rather than the costs reported in the Commerce Department's PACE series. Pollution control
costs for mobile sources are presented for the private sector only; they represent costs to purchasers
and users of all mobile sources of air pollution. The general trends in total mobile source costs are
discussed in this section, while cost estimates for individual vehicle types and the detailed
assumptions and conventions used in their derivation are discussed in Appendix C.
Total annualized costs for mobile source emissions control increased steadily from $1.3 billion
in 1972 to $7.5 billion in 1987. The original mobile source regulations sought to control two
conventional air pollutants, hydrocarbons (HC) and carbon monoxide (CO), from both cars and
trucks. Light-duty vehicle control costs consistently contribute between 65 and 75 percent of these
costs. This is because passenger cars comprise the majority of motor vehicles in use and Federal
regulation has focused to a greater degree on this vehicle class.
The increase in annualized costs over time is due primarily to steadily increasing capital costs.
The steady, moderate rise in capital expenditures reflects a succession of more stringent standards
requiring improved pollution control devices on an increasing number of vehicles and vehicle classes.
Trends in operation and maintenance (O&M) costs have been much more erratic. O&M costs
increased steadily from 1972 through 1974, and then began to decline for two reasons. First, EPA
estimates that maintenance costs actually became a maintenance cost savings with the introduction
of catalytic devices in 1975. This is because catalytic devices require the use of unleaded fuels that
extend the longevity of exhaust systems and spark plugs. Second, the cost associated with a reduction
in fuel economy due to pollution controls began to decline significantly beginning in 1975 as
pollution control equipment became less of a burden on fuel efficiency. EPA estimates that the
advent of the three-way catalysts in 1982 actually improved fuel efficiency. EPA also estimates that
operating costs resulting from premiums paid for unleaded fuels will be eliminated in 1990, as the
price differential between unleaded and leaded fuels reaches zero.
The net effect of these changes is that EPA estimates of mobile source O&M costs begin to
decline in 1975 and actually become a cost saving in 1989, and this savings is projected to increase
significantly over the period 1990-2000. This greatly lowers total annualized costs for mobile sources
November 1990
-------
3-4
Environmental Investments
over the period 1975-2000. Other sources of mobile source cost estimates—such as the U.S.
Department of Commerce PACE reports—do not recognize any beneficial effects of pollution control
devices on O&M costs, and thus report significantly higher overall costs for mobile source pollution
control.
In the 1990s, new and forthcoming regulations are expected to significantly increase total
annualized costs for mobile source pollution control. These regulations are aimed at: (1) strength-
ening tailpipe emission control requirements for passenger cars and light-duty trucks; (2) reducing
hazardous constituents in fuels; and (3) initiating new control requirements for heavy-duty diesel
engines. These regulations are expected to add an additional $1.2 billion in annualized control costs
by 1995, increasing to $3.3 billion by the year 2000. These new requirements will push total
annualized mobile source costs to an estimated $11 billion in 1995 and to over $14 billion by the year
2000.
In addition, a host of other mobile source initiatives would be needed in order for the nation to
reach the ambient air quality standard for ozone. The Administration's strategy for ozone attainment,
if enacted and fully implemented within the next few years, would add an additional $1.3 billion in
annualized mobile source control costs by 1993, increasing to $1.4 billion by year 2000.
3.1.3. Total Air Pollution
On an annualized basis, total air pollution control costs increased steadily since the passage of
the Clean Air Act in 1970. Total costs increased from almost $8 billion in 1972 to nearly $27 billion
in 1987. Stationary source control costs accounted for approximately 67-74 percent of total costs
during this period. In the future, costs associated with existing programs are expected to rise only
slightly. However, the Clean Air Act Amendments of 1990 mentioned in Section 3.1 above would
significantly increase total air pollution control costs in the coming years. The Administration's
original proposal for attaining the ambient air quality standard for ozone would add $4.3 billion in
annual control costs by 1993, $5.4 billion by 1997, and over $6.5 billion by the year 2000. Additio-
nally, the Administration's proposed strategies for regulating the precursors to acid precipitation and
hazardous air pollutants would add an additional $2 billion by 1995, increasing to almost $6 billion
by the year 2000. In sum, the January 1990 EPA estimates of the original Administration proposal
would have pushed total annualized air pollution costs to over $34.5 billion by 1993, to $39.7 billion
by 1997, and to $44 billion by the year 2000. Stationary source costs would account for ap-
proximately 67 percent of total future air pollution control costs.
The estimated costs for the original Administration proposal were later adjusted upward due to
revisions in air toxics cost estimates. The costs of both the Senate and House versions of the
Amendments were estimated to be higher than the original Administration proposal, mainly due to
requrements for tighter tailpipe standards, reformulated gasoline, and oxygenated fuels. Due to these
modifications, the cost of the Clean Air Act Amendments may be significantly higher by the year
2000 than the estimates used in preparing this Report.
November 1990
-------
Costs of Air and Radiation Pollution Control
3.2. RADIATION CONTROL
3-5
The EPA Office of Radiation Programs administers a variety of programs involving several very
unique regulatory and non-regulatory initiatives. For the most part, however, these are either
prospective requirements or requirements shared with other Federal agencies. Thus, historical and
current levels of compliance expenditures are relatively low, and probably much less than those that
will be incurred in the long-term future.
Annualized costs to EPA and non-EPA Federal agencies for existing radiation programs increased
from an estimated $18 million in 1972 to a little over $200 million in 1980, and to over $300 million
in 1987. Costs to Federal agencies for existing radiation programs are estimated to nearly double the
1987 level by the year 2000. Data on radiation control costs borne by private entities and state and
local governments for existing radiation programs are not available.
Under the Uranium Mine Tailings And Reclamation Act, EPA has regulations in place directed
to controlling contamination of groundwaters near uranium mines. These regulations are the source
of compliance expenditures, but these costs were not collected for this report.
EPA has issued regulations governing the handling of high level radioactive wastes from power
plants. However, these regulations currently impose no compliance costs because all nuclear power
plant wastes are now being stored on-site as an interim measure until final disposal issues are
resolved.
3.2.1. Radon
In the last few years EPA has undertaken a major new effort to reduce population exposure to
radon gas. Radon is an odorless, invisible, radioactive gas found in many of the nation's buildings.
It is thought to be the second leading cause of lung cancer in this country. The radon abatement effort
was strengthened by the passage of two new laws, the Radon Gas and Indoor Air Quality Research
Act of 1986 and the Radon Pollution Control Act of 1988. The EPA role is primarily one of studying
the problem, educating the public, and providing information, technology, and other aid to states to
assist them in developing radon control programs.
Although EPA has not required radon mitigation in private homes and buildings, the country has
incurred modest costs for radon control. Estimates of these costs are based primarily on data gathered
in surveys carried out for EPA in New York and the Washington, D.C. areas. There is considerable
uncertainty in the estimates because the surveys were limited to only two regions, and the data
gathered is far from comprehensive. (More detail on the surveys and the radon cost estimates are
presented in Appendix D). The survey data, and projections for future years based on this data,
suggest that private annualized expenditures for radon testing and mitigation were $6 million in 1988,
and will increase to an estimated $71 million by 1993, and to $180 million by the year 2000. Because
these costs are not pursuant to Federal mandates, they are not included in the estimates of total
Federally-mandated costs.
November 1990
-------
3-6 Environmental Investments
3.3. TOTAL AIR POLLUTION AND RADIATION CONTROL COSTS
On an annualized basis, total air and radiation pollution control costs have increased steadily since
the passage of the Clean Air Act. Total costs increased from $7.9 billion in 1972 to an estimated $27
billion in 1987. Radiation programs accounted for less than two percent of these costs. In the future,
costs are expected to rise by a much slower rate in the absence of new initiatives aimed at attaining
the ambient air standard for ozone, controlling the precursors to acid rain, and regulating hazardous
air pollutants. If the Administration's strategies for addressing ozone, acid rain, and air toxics are
enacted and implemented within the next few years, however, they would add an estimated $5.8
billion in control costs by 1995, and an estimated $14.6 billion by the year 2000. Assuming this
scenario comes to pass, total annualized air and radiation pollution control costs would reach $44
billion by the year 2000.
November 1990
-------
Costs of Air and Radiation Pollution Control 3-7
Table 3-1: AIR AND RADIATION POLLUTION CONTROL CAPITAL COSTS BY FUNDING SOURCE
(millions of 1986 dollars)
Rpt
Sec
Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
3.1
Air Po11ut i on
3.1 .1
Stationary Sources
EPA
Non-EPA Federal
108
132
130
111
83
74
59
42
34
59
40
41
38
State & Local Govt
160
196
211
184
264
312
304
385
487
507
539
442
421
329
312
Pr i vate
4,994
6,628
6,601
6,983
6,387
6,061
5,908
i
3,276
6,288
5,860
5,508
4,425
4,433
4,207
4,090
Total Stationary
5,155
6,824
6,920
7,299
6, 781
6,484
6,295
i
3, 735
6,834
6,409
6,081
4,925
4,894
4,577
4,440
Federally Mandated
5,155
6,824
6,920
7,299
6, 781
6,484
6,295
I
3, 735
6,834
6,409
6,081
4,925
4,894
4,577
4,440
3.1 .2
Mobi 1e Sources
EPA
Non-EPA Federal
State & Loca1 Govt
Pr i vate
268
564
472
2,775
3,256
3,548
3,685
I
1,010
3,716
4,189
4,049
4,812
6,125
6,664
6,885
Total Mobile
268
564
472
2,775
3,256
3,548
3,685
L
1,010
3,716
4,189
4,049
4,812
6,125
6,664
6,885
Federally Mandated
268
564
472
2,775
3,256
3,548
3,685
I
1,010
3,716
4,189
4,049
4,812
6,125
6,664
6,885
3.1 .3
Undesignated Source
EPA
Non-EPA Federal
State & Loca1 Govt
Total Undesignated
Federally Mandated
3.1.4
Total Air Pol 1uti on
5,422
7,388
7,392
10,074
10,037
10,032
9,980
1(
D, 745
10,549
10,598
10,130
9,737
11,020
11,240
11,325
Federally Mandated
5,422
7,388
7,392
10,074
10,037
10,032
9,980
1(
D, 745
10,549
10,598
10,130
9,737
11,020
11 ,240
11 ,325
3.2
Rad i at i on
EPA
Non-EPA Federal
24
20
16
8
25
22
64
89
30
37
33
55
47
State Government
Local Government
Pr i vate
Total Radiation
24
20
16
8
25
22
64
89
30
37
33
55
48
Federally Mandated
24
20
16
8
25
22
64
89
30
37
33
55
47
3.3
Total Ai r & Rad
5,422
7,388
7,416
10,094
10,053
10,040
10,005
1(
D, 767
10,613
10,687
10,160
9,774
11,053
11,295
11 ,373
Federally Mandated
5,422
7,388
7,416
10,094
10,053
10,040
10,005
1(
), 767
10,613
10,687
10,160
9,774
11,053
11 ,295
11 ,372
November 1990
-------
3-8
Environmental Investments
Footnotes to Table 3-1
EPA Stationary Sources: Assumed to be zero; EPA air expenses are assumed to be operating costs.
Non-EPA Federal Stationary Sources: 1974-86 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic
Analysis, U.S. Department of Commerce.
State and Local Government: From Appendix B, Table B-l 0.
Private Stationary Sources: From Appendix B, Table B-5.
Stationary Federally Mandated: Assumed to be 100 percent of the total costs of stationary air pollution regulations.
Private Mobile Sources: From Appendix C, Table C-l.
Mobile Federally Mandated: Assumed to be 100 percent of the total costs of mobile air pollution regulations.
Undesignated Federally Mandated: Assumed to be 100 percent of the total costs of undesignated air pollution regulations.
Non-EPA Federal Radiation: 1974-86 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis,
U.S. Department of Commerce.
Radiation Federally Mandated: Assumed to be 100 percent of total federal radiation costs and 0 percent of private radon costs.
Total Air & Radiation Federally Mandated: Assumed to be 100 percent of the total costs of air pollution regulations. Assumed to be 100 percent of total federal radiation costs and 0 percent
of private radon costs.
November 1990
-------
38
41
40
40
39
38
38
37
37
36
36
35
35
34
34
312
276
253
227
200
1 74
148
121
95
69
42
16
(10)
(37)
(63)
090
4,122
3,971
3,876
3,781
3,686
3,591
3,496
3,401
3,306
3,212
3,117
3,022
2,927
2,832
440
4,438
4,264
4,142
4,020
3,898
3,777
3,655
3,533
3,411
3,290
3,168
3,046
2,924
2,803
440
4,438
4,264
4,142
4,020
3,898
3,777
3,655
3,533
3,411
3,290
3,168
3,046
2,924
2,803
Costs of Air and Radiation Pollution Control 3-9
Table 3-1A: AIR POLLUTION CONTROL CAPITAL COSTS BY FUNDING SOURCE
(millions of 1986 dollars)
Rpt
Sec Media 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
3.1 Air Pol Iuti on
3.1.1 Stationary Sources
Existinq Regulations
EPA
Non-EPA Federal
State & Local Govt
Pr i vate
Total Existing Regs
Federally Mandated
New ReguI at i ons
Local Government
Private 477 477 477 106 106 106
Total New Regs 477 477 477 106 106 106
FuI I ImpIementat i on
Total Stationary 4,440 4,915 4,741 4,619 4,126 4,004 3,883 3,655 3,533 3,411 3,290 3,168 3,046 2,924 2,803
Federal Iy Mandated 4,440 4,915 4,741 4,619 4,126 4,004 3,883 3,655 3,533 3,411 3,290 3,168 3,046 2,924 2,803
3.1.2 Mobi Ie Sources
Existinq Regulations
EPA
Non-EPA Federal
State & LocaI Govt
Private 6,885 6,653 6,788 6,476 6,566 6,729 6,871 7,066 7,217 7,367 7,468 7,623 7,732 7,844 7,956
Total Existinq Regs 6,885 6,653 6,788 6,476 6,566 6,729 6,871 7,066 7,217 7,367 7,468 7,623 7,732 7,844 7,956
Federal Iy Mandated 6,885 6,653 6,788 6,476 6,566 6,729 6,871 7,066 7,21 7 7,367 7,468 7,623 7,732 7,844 7,956
New ReguI at i ons
Local Government
Private 96 97 97 147 151 156 186 191 197 203 210 216 223
Total New Regs 96 97 97 147 151 156 186 191 197 203 210 216 223
FuI I ImpIementat i on
Total Mobile 6,885 6,653 6,883 6,573 6,663 6,876 7,022 7,222 7,403 7,559 7,665 7,827 7,941 8,061 8,179
Federal Iy Mandated 6,885 6,653 6,883 6,573 6,663 6,876 7,022 7,222 7,403 7,559 7,665 7,827 7,941 8,061 8,1 79
3.1.3 Undesignated Source
EPA
Non-EPA Federal
State & LocaI Govt
Total Undesignated
Federally Mandated
3.1 .4 Total Air Pol lution 11 ,325 11,568 11,624 11,192 10,790 10,880 10,905 10,876 10,936 10,970 10,955 10,995 10,988 10,985 10,981
Federal Iy Mandated 11,325 11,568 11,624 11,192 10,790 10,880 10,905 10,876 10,936 10,970 10,955 10,995 10,988 10,985 10,981
November 1990
-------
3-10
Environmental Investments
Footnotes to Table 3-1A
Existing EPA Stationary Sources: Assumed to be zero; EPA air expenses are assumed to be operating costs.
Existing Non-EPA Federal Stationary Sources: 1986 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of
Economic Analysis, U.S. Department of Commerce. Linear projection of expenditures for 1987-2000 based on historical data for the years 1983-1986.
Existing State and Local Government: Figures for 1987-1988 from Appendix B, Table B-10. Linear projection of expenditures for 1988-2000 based on historical data for the years 1985-
1987.
Existing Private Stationary Sources: 1986-1987 data from Appendix B, Table B-5. Linear projection of expenditures for 1988-2000 based on historical data for the years 1983-1987.
Existing Stationary Federally Mandated: Assumed to be 100 percent of the total costs of existing stationary air pollution regulations.
New Private Stationary Sources: Estimated on the basis of the regulations and sources listed in Appendix A.
Full Implementation: Estimated on the basis of the regulations and sources listed in Appendix A.
Total Stationary Federally Mandated: Assumed to be 100 percent of the total costs of stationary air pollution regulations.
Existing Private Mobile Sources: From Appendix C, Table C-l A.
Existing Mobile Federally Mandated: Assumed to be 100 percent of the total costs of existing mobile air pollution regulations.
New Private Mobile Sources: Estimated on the basis of the regulations and sources listed in Appendix A.
Total Mobile Federally Mandated: Assumed to be 100 percent of the total costs of mobile air pollution regulations.
Undesignated Federally Mandated: Assumed to be 100 percent of the total costs of undesignated air pollution regulations.
Total Air Pollution Federally Mandated: Assumed to be 100 percent of the total costs of air pollution regulations.
November 1990
-------
Costs of Air and Radiation Pollution Control 3-11
Table 3-1B: RADIATION POLLUTION CONTROL CAPITAL COSTS BY FUNDING SOURCE
(millions of 1986 dollars)
Rpt
Sec
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
3.2
Rad i at i on
Existing Regulations
EPA
Non-EPA Federal
47
56
56
66
72
77
82
87
92
98
103
108
113
118
124
State Government
Local Government
Pr i vate
Total Existing
47
56
56
66
72
77
82
87
92
98
103
108
113
118
124
Federally Mandated
47
56
56
66
72
77
82
87
92
98
103
108
113
118
124
New Regu1 at i ons
Local Government
Pr i vate
1
4
34
79
79
94
89
93
98
103
107
112
117
122
127
Total New Regs
1
4
34
79
79
94
89
93
98
103
107
112
117
122
127
Fu11 1mp1ementat i on
Total Radiation
48
60
90
145
151
1 71
1 71
180
190
201
210
220
230
240
251
Federally Mandated
47
56
56
66
72
77
82
87
92
98
103
108
113
118
124
3.3
Total Ai r & Rad 11
,373
11,628
11 ,714
11 ,337
10,940
11,051
11,076
11,057
11 ,126
11 ,171
11
,165
11 ,215
11
,218
11,225
11
,232
Federally Mandated 11
,372
11,624
11,680
11,258
10,861
10,957
10,987
10,964
11,028
11,068
11
,058
11 ,103
11
,101
11 ,103
11
,105
Footnotes to Table 3-1B
Total Existing Federally Mandated: Assumed to be 100 percent of total federal radiation costs.
New Private Radiation: Estimated expenditures for radon control from Appendix D, Table D-l.
Total Radiation Federally Mandated: Assumed to be 100 percent of total federal radiation costs and 0 percent of private radon costs.
Total Air & Radiation Federally Mandated: Assumed to be 100 percent of the total costs of air pollution regulations. Assumed to be 100 percent of total federal radiation costs and 0 percent
of private radon costs.
November 1990
-------
3-12
Environmental Investments
Table 3-2: AIR AND RADIATION POLLUTION CONTROL OPERATING COSTS BY FUNDING SOURCE
(millions of 1986 dollars)
Rpt
Sec
Media
1972
1973
1974
1975
1976
3.1
Air Po11ut i on
3.1 .1
Stationary Sources
EPA
Non-EPA Federal
168
166
220
State & Local Govt
343
359
394
348
338
Pr i vate
5,400
5,491
5,021
5,243
5,935
Total Stationary
5, 744
5,850
5,583
5,756
6,494
Federally Mandated
5, 744
5,850
5,583
5,756
6,494
3.1 .2
Mobi 1e Sources
EPA
Non-EPA Federal
State & Loca1 Govt
Pr i vate
1 ,307
2,118
2,082
1 ,828
1 ,597
Total Mobile
1 ,307
2,118
2,082
1 ,828
1 ,597
Federally Mandated
1 ,307
2,118
2,082
1 ,828
1 ,597
3.1 .3
Undesignated Source
EPA
341
364
292
286
279
Non-EPA Federal
State & Loca1 Govt
Total Undesignated
341
364
292
286
279
Federally Mandated
341
364
292
286
279
3.1.4
Total Air Pol 1uti on
7,392
8,332
7,957
7,871
8,370
Federally Mandated
7,392
8,332
7,957
7,871
8,370
3.2
Rad i at i on
EPA
18
1 7
14
18
12
Non-EPA Federal
239
210
141
State Government
Local Government
Pr i vate
Total Radiation
18
1 7
253
228
153
Federally Mandated
18
1 7
253
228
153
3.3
Total Ai r & Rad
7,409
8,349
8,210
8,099
8,523
Federally Mandated
7,409
8,349
8,210
8,099
8,523
1978
1979
1980
1981
1982
1983
1984
1985
1986
[126]
[116]
[127]
[133]
[134]
261
165
185
157
147
1 74
200
270
186
390
423
441
406
396
410
420
455
507
.194
7,377
7,072
6,938
6,540
7,331
7,715
7,914 i
3,571
.845
7,965
7,698
7,501
7,083
7,915
8,335
8,639 <
3,264
.845
7,965
7,698
7,501
7,083
7,915
8,335
8,639 <
3,264
[15]
[16]
[17]
[18]
[20]
1 ,293
1 ,027
836
443
192
269
114
(3)
236
1 ,293
1 ,027
836
443
192
269
114
(3)
236
1 ,293
1 ,027
836
443
192
269
114
(3)
236
230
310
327
278
261
231
237
233
231
230
310
327
278
261
231
237
233
231
230
310
327
278
261
231
237
233
231
.368
9,302
8,861
8,221
7,536
8,415
8,685
8,869 <
3,731
.368
9,302
8,861
8,221
7,536
8,415
8,685
8,869 <
3,731
9
12
15
15
13
15
12
16
13
220
210
189
163
182
164
1 71
181
301
229
222
204
1 78
195
1 79
183
197
314
229
222
204
1 78
195
1 79
183
197
314
.597
9,524
9,065
8,399
7,731
8,594
8,868
9,066 1(
}, 045
.597
9,524
9,065
8,399
7,731
8,594
8,868
9,066 1(
D, 045
977
244
363
626
234
234
,494
,494
,494
285
285
285
013
013
10
158
168
168
180
180
November 1990
-------
Costs of Air and Radiation Pollution Control
3-13
Footnotes to Table 3-2
EPA Stationary Sources: Data from the 1990 President's Budget Justification Document. All EPA costs are included in the undesignated category (i.e., undesignated between stationary
and mobile sources) because a distinction between stationary and mobile sources has not been possible to make for all years. The brackets indicate years where that distinction was possible.
The numbers in brackets are included for illustrative purposes only and are not included as part of total costs. If done uniformly for all air categories, the corresponding numbers for the
undesignated category would be those shown minus the bracketed numbers in stationary and mobile.
Non-EPA Federal Stationary Sources: 1974-86 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic
Analysis, U.S. Department of Commerce.
State and Local Government: From Appendix B, Table B-l 0.
Private Stationary Sources: From Appendix B, Table B-7.
Existing Stationary Federally Mandated: Assumed to be 100 percent of the total costs of existing stationary air pollution regulations.
Total Stationary Federally Mandated: Assumed to be 100 percent of the total costs of stationary air pollution regulations.
EPA Mobile Sources: Data from the 1990 President's Budget Justification Document. All EPA costs are included in the undesignated category (i.e., undesignated between stationary and
mobile sources) because a distinction between stationary and mobile sources has not been possible to make for all years. The brackets indicate years where that distinction was possible.
The numbers in brackets are included for illustrative purposes only and are not included as part of total costs. If done uniformly for all air categories, the corresponding numbers for the
undesignated category would be those shown minus the bracketed numbers in stationary and mobile.
Private Mobile Sources: From Appendix C, Table C-l.
Existing Mobile Federally Mandated: Assumed to be 100 percent of the total costs of existing mobile air pollution regulations.
Total Mobile Federally Mandated: Assumed to be 100 percent of the total costs of mobile air pollution regulations.
Undesignated Source: Represents air expenses not designated by source as either stationary or mobile; air pollution control costs for undesignated sources are assumed to be all operating
costs.
Undesignated Federally Mandated: Assumed to be 100 percent of the total costs of undesignated air pollution regulations.
Total Air Pollution Federally Mandated: Assumed to be 100 percent of the total costs of air pollution regulations.
November 1990
-------
3-14 Environmental Investments
EPA Radiation: Data from annual Justification of Appropriation Estimates for Committee on Appropriations (data for 1972-1974 are Budget Authority; data for 1975-1986 are Outlays).
Non-EPA Radiation: 1974-86 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis, U.S.
Department of Commerce.
Radiation Federally Mandated: Assumed to be 100 percent of total federal radiation costs and 0 percent of private radon costs.
Total Air & Radiation Federally Mandated: Assumed to be 100 percent of the total costs of air pollution regulations. Assumed to be 100 percent of total federal radiation costs and 0 percent
of private radon costs.
November 1990
-------
Costs of Air and Radiation Pollution Control
3-15
Table 3-2A: AIR POLLUTION CONTROL OPERATING COSTS BY FUNDING SOURCE
(millions of 1986 dollars)
Rpt
Media
1991 1992 1993
1995
1997
2000
11
12
12,311
3.1 .2
Mobi Ie Sources
Existinq Regulations
EPA
Non-EPA Federal
State & LocaI Govt
Pr i vate
Total Existing Regs
Federally Mandated
New ReguI at i ons
Local Government
Pr i vate
Total New
[20]
236
236
236
[20]
238
238
238
'21
213
213
213
'22'
'23'
'24'
'136) (1 ,766)
'1361 h,766
'1361 h , 766
'25'
'1 ,623'
'1 ,623'
'1 ,623'
[26]
'1 ,549'
'1 ,549'
'1 ,549'
'27'
'1 ,459'
'1 ,459'
'1 ,459'
'1 ,372'
'1 ,372'
'1 ,372'
'29'
'1 ,320"
'1 ,320;
'1 ,320
[30]
'1 ,246"
'1 ,246;
'1 ,246
'31
'1 ,191
'1 ,191
'1 ,191
'33'
'1 ,153'
'1 ,153'
'1 ,153'
FuI I ImpIementati on
Total Mobile
Federally Mandated
3.1.3 Undesignated Source
EPA
Non-EPA Federal
State & LocaI Govt
236
236
231
238
238
250
213
213
221
134
134
134
134
375
375
1,632) (1,31
1,6321 h ,31
226
235
301
221
21 7
212
207
203
193
'155]
' 444
3.1 Air Pol Iuti on
3.1.1 Stationary Sources
Existing Regulations
EPA [1341 [1321 [1301 [135] [1371 [1391 [141] [1431 [144] [1461 [1481 [1501
Non-EPA Federal 186 24^ 25^ 274 28^ 30^ 326 33& 351 36& 38^ 39)
State & Local Govt 507 507 487 496 505 515 524 534 543 553 562 572
Private 8,571 9,189 8,887 8,887 9,373 9,616 9,859 10,102 10,345 10,588 10,831 11,074
Total Existing Regs 9,264 9,939 9,632 9,657 10,168 10,436 10,704 10,972 11,239 11,507 11,775 12,043
Federal Iy Mandated 9,264 9,939 9,632 9,657 10,168 10,436 10,704 10,972 11,239 11,507 11,775 12,043
New ReguI at i ons
Local Government
1521
4li
581
,317
,311
[1531
42^
591
11,560
12,579
12,579
11 ,
12,
12,
Pr i vate
1 7
35
52
62
77
210
391
1 ,031
1 ,
548
1
738
2,053
2,731
3,88
Total New Regs
1 7
35
52
62
77
210
391
1 ,031
1 ,
548
1
738
2,053
2,731
3,88
Fu11 1mplementati on
3 ,042
3,053
3,084
3,
190
3
897
4,301
4,708
5,11
Total Stationary
9,264
9,939
9,649
9,692 10
,220 10
498 10
, 781
14,224
14,683
15,622
16,
313
1 7
678
18,665
20,018
21 ,84
Federally Mandated
9,264
9,939
9,649
9,692 10
,220 10
498 10
, 781
14,224
14,683
15,622
16,
31 3
1 7
678
18,665
20,018
21 ,84
'34'
'1 ,135'
'1 ,135'
'1 ,135'
484
438
389
1 ,035
1 ,718
2,401
3,083
3,065
3,049
484
438
389
1 ,035
1 ,718
2,401
3,083
3,065
3,049
1 ,326
1 ,345
1 ,505
1 ,522
1 ,537
1 ,553
1 ,568
1 ,440
139)
215
275
1 ,168
1 ,920
2,692
3,445
3,480
3,354
1 39 j
215
275
1 ,168
1 ,920
2,692
3,445
3,480
3,354
Total Undesignated
231
250
221
226
235
301
221
21 7
212
207
203
198
193
189
Federally Mandated
231
250
221
226
235
301
221
21 7
212
207
203
198
193
189
3.1.4 Total Air Pol 1uti on
9, 731
10,427 10
',083
9,916
8,823
9,480
9,863
14,655
15,170 16
;,997 IS
:,935
20,568
22,303
23,686
¦ 25,
Federally Mandated
9, 731
10,427 10
',083
9,916
8,823
9,480
9,863
14,655
15,170 16
;,997 1 8
:,935
20,568
22,303
23,686
¦ 25,
November 1990
-------
3-16
Environmental Investments
Footnotes to Table 3-2A
Existing EPA Stationary Sources: Data from the 1990 President's Budget Justification Document. All EPA costs are included in the undesignated category (i.e.,
undesignated between stationary and mobile sources) because a distinction between stationary and mobile sources has not been possible to make for all years. The
brackets indicate years where that distinction was possible. The numbers in brackets are included for illustrative purposes only and are not included as part of total costs.
If done uniformly for all air categories, the corresponding numbers for the undesignated category would be those shown minus the bracketed numbers in stationary and
mobile.
Existing Non-EPA Federal Stationary Sources: 1986 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted
to the Bureau of Economic Analysis, U.S. Department of Commerce. Linear projection of expenditures for 1987-2000 based on historical data for the years 1981-1986.
Existing State and Local Government: Figures for 1987-1988 from Appendix B, Table B-10. Linear projection of expenditures for 1988-2000 based on historical data
for the years 1982-1987.
Existing Private Stationary Sources: 1986-1987 data from Appendix B, Table B-7. Linear projection of expenditures for 1988-2000 based on historical data for the years
1973-1987.
Existing Stationary Federally Mandated: Assumed to be 100 percent of the total costs of existing stationary air pollution regulations.
New Private Stationary Sources: Estimated on the basis of the regulations and sources listed in Appendix A.
Full Implementation: Estimated on the basis of the regulations and sources listed in Appendix A.
Total Stationary Federally Mandated: Assumed to be 100 percent of the total costs of stationary air pollution regulations.
Existing EPA Mobile Sources: Data from the 1990 President's Budget Justification Document. All EPA costs are included in the undesignated category (i.e., undesignated
between stationary and mobile sources) because a distinction between stationary and mobile sources has not been possible to make for all years. The brackets indicate
years where that distinction was possible. The numbers in brackets are included for illustrative purposes only and are not included as part of total costs. If done uniformly
for all air categories, the corresponding numbers for the undesignated category would be those shown minus the bracketed numbers in stationary and mobile.
Existing Private Mobile Sources: From Appendix C, Table C-1A.
Existing Mobile Federally Mandated: Assumed to be 100 percent of the total costs of existing mobile air pollution regulations.
November 1990
-------
Costs of Air and Radiation Pollution Control 3-17
New Private Mobile Sources: Estimated on the basis of the regulations and sources listed in Appendix A.
Full Implementation: Estimated on the basis of the regulations and sources listed in Appendix A.
Total Mobile Federally Mandated: Assumed to be 100 percent of the total costs of mobile air pollution regulations.
Undesignated Federally Mandated: Assumed to be 100 percent of the total costs of undesignated air pollution regulations.
Total Air Pollution Federally Mandated: Assumed to be 100 percent of the total costs of air pollution regulations.
November 1990
-------
3-18
Environmental Investments
Table 3-2B: RADIATION POLLUTION CONTROL OPERATING COSTS BY FUNDING SOURCE
(millions of 1986 dollars)
Rpt
Media
1991 1992 1993 1
1995 1
1 997 1
1999 2000
3.2 Rad i at i on
Existing Regulations
EPA
Non-EPA Federal
State Government
Local Government
Pr i vate
Total Existing
Federally Mandated
13
301
314
314
18
263
281
281
14
283
297
297
19
303
322
322
25
323
27
342
370
370
29
362
391
391
32
382
414
414
35
402
437
437
422
459
459
41
442
43
461
505
505
527
527
501
550
550
52
521
573
573
New ReguI at i ons
Local Government
Pr i vate
Total New
14
14
20
20
25
25
31
31
36
36
42
42
53
53
59
59
65
65
71
71
FuI I ImpIementat i on
Total Rc
Federal
j i at i on
Iy Mandated
31-
31 ¦
281
281
300
297
330
322
362
370
41 7
391
445
414
473
437
502
459
530
558
505
587
527
615
550
573
3.3
Total Ai
Federal
r
Iy Mandated
10,045 10,708 10,383 10,246 9,185
10,045 10,708 10,380 10,237 9,171
10,280 15,100 15,643 17,499 19,465 21,126 22,889 24,301 26,030
10,255 15,069 15,607 17,457 19,417 21,072 22,830 24,236 25,959
Footnotes to Table 3-2B
Existing EPA Radiation: 1986-1990 data from annual Justification of Appropriation Estimates for Committee on Appropriations (data for 1986-1988 are Outlays; amount for 1989 is
Current Estimate; amount for 1990 is Request). Linear projection of expenditures for 1991 -2000 based on historical data for the years 1986-1990.
Existing Non-EPA Federal Radiation: 1986 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic
Analysis, U.S. Department of Commerce. Linear projection of expenditures for 1987-2000 based on historical data for the years 1981-1986.
Existing Radiation Federally Mandated: Assumed to be 100 percent of total federal radiation costs.
November 1990
-------
Costs of Air and Radiation Pollution Control 3-19
New Private Radiation: Estimated expenditures for radon control from Appendix D, Table D-l.
Total Radiation Federally Mandated: Assumed to be 100 percent of total federal radiation costs and 0 percent of private radon costs.
Total Air & Radiation Federally Mandated: Assumed to be 100 percent of the total costs of air pollution regulations. Assumed to be 100 percent of total federal radiation costs and 0 percent
of private radon costs.
November 1990
-------
3-20
Environmental Investments
Table 3-3: AIR AND RADIATION POLLUTION CONTROL COSTS BY FUNDING SOURCE ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1 78
189
255
289
314
225
251
227
220
253
282
356
276
359
393
447
419
434
489
544
613
677
690
731
787
836
902
984
5,872
6,588
6, 741
7,622
8,918
1(
), 1 81
11,306
12,081
12,370
12,789
12,911
14,120
1;
1,922
15,518
16,561
6,230
6,981
7,366
8,229
9,607
1(
3,959
12,164
12,920
13,298
13,706
13,862
15,159
M
3,041
16,777
17,821
6,230
6,981
7,366
8,229
9,607
1(
), 959
12,164
12,920
13,298
13,706
13,862
15,159
M
3,041
16,777
17,821
3.1 Air Pol Iuti on
3.1.1 Stationary Sources
EPA
Non-EPA Federal
State & Local Govt
Pr i vate
Total Stationary
Federally Mandated
3.1.2 Mobi Ie Sources
EPA
Non-EPA Federal
State & LocaI Govt
Private 1,345
Total Mobi le 1,345
Federally Mandated 1,345
3.1.3 Undesignated Source
EPA
Non-EPA Federal
State & LocaI Govt
Total Undesignated
Federally Mandated
3.1.4 Total Air Pol Iuti on
Federally Mandated
3 . 2 Rad i at i on
EPA
Non-EPA Federal
State Government
Local Government
Pr i vate
Total Radiation
Federally Mandated
3.3 Total Ai r & Rad
Federally Mandated
341
341
341
7,916
7,916
18
18
7,934
7,934
2,236
2,236
2,236
364
364
364
9,581
9,581
1 7
1 7
1 7
2,
2,
2,
292
292
292
9,927
9,927
14
241
255
255
10,182
10,182
2,
2,
2,
10,925
10,925
18
214
232
232
11 ,156
11 ,156
2,642
2,642
2,642
279
279
279
12,528
12,528
12
3,043
3,043
3,043
285
285
285
14,287
14,287
3,367 3,672
3,367 3,672
3,367 3,672
230
230
230
12,
12,
1 73
1 73
14,460
14,460
15,761
15,761
228
237
237
15,998
15,998
310
310
310
16,902
16,902
12
220
232
232
4,010
4,010
4,010
327
327
327
17,635
17,635
15
204
219
219
4,213
4,213
4,213
278
278
278
15
201
201
4,501
4,501
4,501
261
261
261
18,624
18,624
13
220
220
5,1
5,1
5,1
231
231
231
20,573
20,573
15
193
207
207
5,832
5,832
5,832
237
237
237
22,1'
22,1'
12
203
215
215
17,134 17,854 18,397 1
17,134 17,854 18,397 1
20,780 22,324
20,780 22,324
6,269
6,269
6,269
233
233
233
23,279
23,279
16
21 7
233
233
23,513
23,513
7,025
7,025
7,025
231
231
231
25,077
25,077
13
341
355
354
25,431
25,431
Footnotes to Table 3-3
Sum of operating costs for year in question, shown on corresponding lines of Table 3-2, plus amortized capital costs assuming an interest rate of seven percent and a capital life of ten
years for mobile sources, 25 years for radiation, and 20 years for all other capital on the accumulated capital investment shown in Table 3-1 since 1972.
November 1990
-------
Costs of Air and Radiation Pollution Control
3-21
Table 3-3A: AIR POLLUTION CONTROL COSTS BY FUNDING SOURCE ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Media
1991 1992 1993 1
1995 1
1 997 1
2000
Air PoI Iut i on
Stationary Sources
Existinq Regulations
EPA
Non-EPA Federal
State & Local Govt
Pr i vate
Total Existing Regs
Federally Mandated
New ReguI at i ons
Pr i vate
Total New
276
984
16,561
17,821
17,821
FuI I ImpIementati on
Total Stationary 17,821
Federally Mandated 17,821
3.1
2 Mobi Ie Sources
Existing Regulations
EPA
Pr i vate
Total Existing Regs
Federally Mandated
New ReguI at i ons
Pr i vate
Total New
FuI I ImpIementati on
Total Mobile
Federally Mandated
3.1.3 Undesignated Source
EPA
Total Undesignated
Federally Mandated
3.1.4 Total Air Pol Iuti on
Federally Mandated
337
1 ,010
17,568
18,915
18,915
45
45
7,025
7,025
7,025
7,-
7,-
7,-
7,025
7,025
231
231
231
25,077
25,077
356
1 ,013
17,642
19,011
19,011
107
107
19,118
19,118
7,
7,
7,
7, ¦
7,-
250
250
250
26,679
26,679
7,
7,
221
221
221
27,238
27,238
375
1 ,044
18,007
19,427
19,427
1 70
1 70
19,597
19,597
7,
7,
7,
161
161
226
226
226
27,872
27,872
394
1 ,073
18,850
20,317
20,317
197
197
20,514
20,514
1 75
1 75
235
235
235
27,588
27,588
413
1 ,099
19,441
20,953
20,953
21 7
21 7
21 ,170
21 ,170
7,'
7,'
7,'
437
437
7,535
7,535
301
301
301
29,005
29,005
432
1 ,107
19,552
21,091
21,091
242
242
21,333
21,333
7,570
7,570
7,570
221
221
221
29,692
29,692
451
1 ,109
19,499
21,059
21,059
375
375
1 ,108
19,440
21,007
21,007
556
556
1 ,106
19,336
20,908
20,908
1 ,1
1 ,1
473
1 ,095
19,279
20,847
20,847
713
713
1 ,076
19,244
20,801
20,801
1 ,903
1 ,903
492
1 ,056
19,215
20,762
20,762
2,218
2,218
504
1 ,026
19,141
20,671
20,671
2,
2,
51 7
20,558
20,558
4,053
4,053
3,042
3,053
3,084
3,490
3,897
4,301
4,708
5,114
24,476
24,616
25,188
26,050
26,601
27,282
28,275
29,725
24,476
24,616
25,188
26,050
26,601
27,282
28,275
29,725
7,965
8,210
8,397
8,532
8,745
8,934
9,167
9,383
7,965
8,210
8,397
8,532
8,745
8,934
9,167
9,383
7,965
8,210
8,397
8,532
8,745
8,934
9,167
9,383
544
521
1 ,195
1 ,906
2,618
3,316
3,315
3,317
544
521
1 ,195
1 ,906
2,618
3,316
3,315
3,317
1 ,326
1 ,345
1 ,505
1 ,522
1 ,537
1 ,553
1 ,568
1 ,440
9,835
10,076
11,097
11,960
12,899
13,803
14,050
14,140
9,835
10,076
11,097
11 ,960
12,899
13,803
14,050
14,140
21 7
212
207
203
198
193
189
184
21 7
212
207
203
198
193
189
184
21 7
212
207
203
198
193
189
184
34,528
34,905
36,493
38,212
39,699
41,278
42,513
44,049
34,528
34,905
36,493
38,212
39,699
41,278
42,513
44,049
Footnotes to Table 3-3A
Sum of operating costs for year in question, shown on corresponding lines of Table 3-2A, plus amortized capital costs assuming an interest rate of seven percent and a capital life of ten
years for mobile sources, 25 years for radiation, and 20 years for all other capital on the accumulated capital investment shown in Tables 3-1 and 3-1A since 1972.
November 1990
-------
3-22
Environmental Investments
Rpt
Table 3-3B: RADIATION POLLUTION CONTROL COSTS BY FUNDING SOURCE ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Media
1991
1992
1993
1995
1997
2000
3.2
3.3
Rad i at i on
Existing Regulations
EPA
Non-EPA Federal
State Government
Local Government
Pr i vate
Total Exist Radiation
Federally Mandated
New ReguI at i ons
Local Government
Pr i vate
Total New
FuI I ImpIementat i on
Total Radiation
Federally Mandated
13
341
354
354
355
354
326
326
327
326
14
333
347
347
Total Ai r & Rad 25,431
Federally Mandated 25,431
27,'
27,005
353
347
27,591
27,585
19
358
377
377
396
377
25
410
410
31
31
441
410
27
411
45
45
29
467
467
525
467
32
465
497
497
71
71
497
35
493
528
528
613
528
521
559
559
659
559
267 28,029 29,488 30,217 35,096 35,518 37,151
249 27,998 29,443 30,159 35,025 35,433 37,051
41
550
590
590
115
115
705
590
91 7 40.
43
579
622
622
130
130
752
622
451
321
654
654
654
636
162
162
42,078 43,361
41,932 43,198
52
665
71 7
71 7
1 79
1 79
71 7
, 765
Footnotes to Table 3-3B
Sum of operating costs for year in question, shown on corresponding lines of Table 3-2B, plus amortized capital costs assuming an interest rate of seven percent and a capital life of 25
years on the accumulated capital investment shown in Tables 3-1 and 3-1B since 1972.
November 1990
-------
Costs of Air and Radiation Pollution Control
3-23
Table 3-3C: AIR AND RADIATION POLLUTION CONTROL COSTS BY FUNDING SOURCE ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Media
1972
1973
1 974 1 975 1 976 1 977 1
1 979 1
3.1 Air Pol Iuti on
3.1.1 Stationary Sources
EPA
Non-EPA Federal
State & Local Govt
Pr i vate
Total Stationary
Federally Mandated
3.1.2 Mobi Ie Sources
EPA
Pr i vate
Total Mobile
Federally Mandated
3.1.3 Undesignated Source
EPA
Total Undesignated
Federally Mandated
3.1.4 Total Air Pol Iuti on
Federally Mandated
3 . 2 Rad i at i on
EPA
Non-EPA Federal
State Government
Local Government
Pr i vate
Total Radiation
Federally Mandated
3.3 Total Ai r & Rad
Federally Mandated
354
5,736
383
6,272
6,655
6,655
1 75
432
6,246
6,853
6,853
182
398
6,937
7,517
7,517
245
407
8,059
8,711
8,711
276
452
9,157
299
500
10,122
10,921
10,921
232
559
10,727
11,493
11 ,493
10
11
11
207
608
11 ,104
11 ,919
11 ,919
199
634
11,077
11 ,910
11 ,910
230
678
12,165
13,074
13,074
259
716
12,847
13,822
13,822
331
774
13,329
14,434
14,434
250
847
14,261
15,357
15,357
1 ,338
2,215
2,235
2,306
2,457
2,769
3
,000
3,205
3,450
3,547
3,740
4,315
4
,822
5,161
5,825
1 ,338
2,215
2,235
2,306
2,457
2,769
3
,000
3,205
3,450
3,547
3,740
4,315
4
,822
5,161
5,825
1 ,338
2,215
2,235
2,306
2,457
2,769
3
,000
3,205
3,450
3,547
3,740
4,315
4
,822
5,161
5,825
341
364
292
286
279
285
230
310
327
278
261
231
237
233
231
341
364
292
286
279
285
230
310
327
278
261
231
237
233
231
341
364
292
286
279
285
230
310
327
278
261
231
237
233
231
7,769
9,235
9,380
10,110
11,447
12,941
14
,151
15,008
15,462
15,744
15,911
17,619
18
:,881
19,828
21 ,414
7,769
9,235
9,380
10,110
11 ,447
12,941
14
,151
15,008
15,462
15,744
15,911
17,619
18
:,881
19,828
21 ,414
18
1 7
14
18
12
10
9
12
15
15
13
15
12
16
13
240
213
144
162
225
21 7
199
1 78
199
183
192
205
328
18
1 7
255
231
156
1 71
234
229
214
193
212
198
204
221
341
18
1 7
255
231
156
1 71
234
229
214
193
212
198
204
221
341
7,787
9,251
9,635
10,341
11,603
13,112
14
,386
15,237
15,676
15,937
16,123
17,817
19
',085
20,050
21,755
7,787
9,251
9,635
10,341
11,603
13,112
14
,386
15,237
15,676
15,937
16,123
17,817
IS
',085
20,050
21,755
Footnotes to Table 3-3C
Sum of operating costs for year in question, shown on corresponding lines of Table 3-2, plus amortized capital costs assuming an interest rate of three percent and a capital life of ten years
for mobile sources, 25 years for radiation, and 20 years for all other capital on the accumulated capital investment shown in Table 3-1 since 1972.
November 1990
-------
3-24
Environmental Investments
Table 3-3D: AIR POLLUTION CONTROL COSTS BY FUNDING SOURCE ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Media
1990 1991
1992 1993 1
1995
1997
2000
3.1
3.1
3.1
Air PoI Iut i on
Stationary Sources
Existinq Regulations
EPA
Non-EPA Federal
State & Local Govt
Pr i vate
Total Existing Regs
Federally Mandated
New ReguI at i ons
Pr i vate
Total New
FuI I ImpIementati on
Total Stationary
Federally Mandated
2 Mobi Ie Sources
Ex i st i ng Regu I at i oi
EPA
Pr i vate
Total Existing Regs
Federally Mandated
250
310
328
346
364
382
400
418
428
437
447
457
469
482
496
847
865
862
886
909
930
939
943
945
947
941
931
919
900
873
14,261
15,156
15,121
15,382
16,122
16,612
16,761
16,794
16,821
16,817
16,847
16,892
16,941
16,959
16,969
15,357
16,331
16,311
16,614
17,395
17,925
18,100
18,155
18,195
18,202
18,235
18,280
18,329
18,341
18,338
15,357
16,331
16,311
16,614
17,395
17,925
18,100
18,155
18,195
18,202
18,235
18,280
18,329
18,341
18,338
32
81
131
155
72
195
328
509
1 ,149
1 ,666
1 ,856
2,171
2,849
4,006
32
81
131
155
72
195
328
509
1 ,149
1 ,666
1 ,856
2,171
2,849
4,006
3,042
3,053
3,084
3,490
3,897
4,301
4,708
5,114
15,357
16,363
16,392
16,745
17,550
18,097
18,295
21 ,524
21 , 757
22,434
23,390
24,032
24,801
25,897
27,457
15,357
16,363
16,392
16,745
17,550
18,097
18,295
21 ,524
21 , 757
22,434
23,390
24,032
24,801
25,897
27,457
s
5,825
6,192
6,530
6,470
5,175
5,545
5,947
6,284
6,502
6,672
6, 792
6,980
7,146
7,345
7,525
5,825
6,192
6,530
6,470
5,175
5,545
5,947
6,284
6,502
6,672
6, 792
6,980
7,146
7,345
7,525
5,825
6,192
6,530
6,470
5,175
5,545
5,947
6,284
6,502
6,672
6, 792
6,980
7,146
7,345
7,525
Pr i vate
11
157
168
426
553
525
498
1 ,166
1 ,872
2,579
3,275
3,271
3,269
Total New Regs
11
157
168
426
553
525
498
1 ,166
1 ,872
2,579
3,275
3,271
3,269
Fu11 1mp1ementati on
1 ,326
1 ,345
1 ,505
1 ,522
1 ,537
1 ,553
1 ,568
1 ,440
Total Mobile
5,825
6,192
6,541
6,627
5,343
5,971
6,500
8,136
8,345
9,343
10,186
11,096
11 ,974
12,183
12,235
Federally Mandated
5,825
6,192
6,541
6,627
5,343
5,971
6,500
8,136
8,345
9,343
10,186
11,096
11 ,974
12,183
12,235
3.1.3 Undesignated Source
EPA 231 250 221 226 235 301 221 21 7 212 207 203 198 193 189 184
Total Undesignated 231 250 221 226 235 301 221 21 7 212 207 203 198 193 189 184
Federal Iy Mandated 231 250 221 226 235 301 221 21 7 212 207 203 198 193 189 184
3.1.4 Total Air Pollution 21,414 22,804 23,154 23,598 23,128 24,369 25,016 29,877 30,314 31,985 33,779 35,326 36,967 38,269 39,876
Federal Iy Mandated 21,414 22,804 23,154 23,598 23,128 24,369 25,016 29,877 30,314 31,985 33,779 35,326 36,967 38,269 39,876
Footnotes to Table 3-3D
Sum of operating costs for year in question, shown on corresponding lines of Table 3-2A, plus amortized capital costs assuming an interest rate of three percent and a capital life often
years for mobile sources and 20 years for all other capital on the accumulated capital investment shown in Table 3-1 and 3-1A since 1972.
November 1990
-------
Rpt
Costs of Air and Radiation Pollution Control 3-25
Table 3-3E: RADIATION POLLUTION CONTROL COSTS BY FUNDING SOURCE ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Media
1991
1992
1993
1995
1997
2000
3.2
3.3
Rad i at i on
Existing Regulations
EPA
Non-EPA Federal
State Government
Local Government
Pr i vate
Total Exist Radiation
Federally Mandated
New ReguI at i ons
Local Government
Pr i vate
Total New
FuI I ImpIementat i on
Total Radiation
Federally Mandated
13
328
341
341
341
341
18
293
311
311
312
311
14
316
330
330
335
330
19
340
359
359
15
15
374
359
25
364
25
25
415
27
415
415
36
36
452
415
29
413
442
442
47
47
442
32
470
470
528
470
35
463
567
526
526
607
526
41
514
554
554
93
93
647
554
43
540
583
583
105
105
583
566 591
612
612
117
117
730
612
130
130
770
Total Ai r & Rad 21,755 23,116 23,
Federal Iy Mandated 21,755 23,116 23,
23,972 23,543 24,821 25,505 30,404 30,881 32,591 34,426 36,01
23,957 23,517 24,785 25,458 30,346 30,811 32,510 34,334 35,91'
52
61 7
143
143
37,697 39,'
37,580 38,910 40,545
Footnotes to Table 3-3E
Sum of operating costs for year in question, shown on corresponding lines of Table 3-2B, plus amortized capital costs assuming an interest rate of three percent and a capital life of 25
years on the accumulated capital investment shown in Tables 3-1 and 3-1B since 1972.
November 1990
-------
3-26 Environmental Investments
Table 3-3F: AIR AND RADIATION POLLUTION CONTROL COSTS BY FUNDING SOURCE ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Sec Media 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986
3.1 Air Pol Iuti on
3.1.1 Stationary Sources
EPA
Non-EPA Federal
State & Local Govt
Pr i vate
Total Stationary
Federally Mandated
3.1.2 Mobi Ie Sources
EPA
Pr i vate
1 ,350
2,253
2,295
2,492
2,791
3,265
3,663 4
,051
4,464
4,752
5,117
5,885
6,650
7,166
7,996
Total Mobile
1 ,350
2,253
2,295
2,492
2,791
3,265
3,663 4
,051
4,464
4,752
5,117
5,885
6,650
7,166
7,996
Federally Mandated
1 ,350
2,253
2,295
2,492
2,791
3,265
3,663 4
,051
4,464
4,752
5,117
5,885
6,650
7,166
7,996
Undesignated Source
EPA
341
364
292
286
279
285
230
310
327
278
261
231
237
233
231
Total Undesignated
341
364
292
286
279
285
230
310
327
278
261
231
237
233
231
Federally Mandated
341
364
292
286
279
285
230
310
327
278
261
231
237
233
231
Total Air Pol 1uti on
8,041
9,874
10,389
11 ,612
13,438
15,419
17,113 18
:,491
19,457
20,252
20,897
23,046
24,811
26,165
28,139
Federally Mandated
8,041
9,874
10,389
11 ,612
13,438
15,419
17,113 18
:,491
19,457
20,252
20,897
23,046
24,811
26,165
28,139
3.2 Rad i at i on
EPA IE
I 17
14
18
12
10
9
12
15
15
13
15
12
16
13
Non-EPA Federal
242
215
148
165
230
223
209
193
215
201
212
228
353
Total Radiation IE
1 17
256
233
159
1 75
239
235
223
207
228
216
224
244
366
Federally Mandated IE
3 17
256
233
159
1 75
239
235
223
207
228
216
224
244
366
Total Ai r & Rad 8,05E
1 9,891 1C
), 645
11,845
13,597
15,594
17,353 18
:,726 IS
',681
20,459
21 ,124
23,261
25,034
26,
.409 ;
?8,505
Federally Mandated 8,05E
3 9,891 1C
),645
11 ,845
13,597
15,594
17,353 18
:,726 19
',681
20,459
21 ,124
23,261
25,034
26.
.409 ;
?8,505
181
362 401 460
5,987 6,856 7,161
6,349 7,257 7,802
6,349 7,257 7,802
194 263 300
436 458 519
8,204 9,646 11,049
8,834 10,367 11,869
8,834 10,367 11,869
327 240 267
582 660 735
12,311 13,231 13,665
13,220 14,131 14,667
13,220 14,131 14,667
244 238 272
759 813 879
14,219 14,468 15,779
15,222 15,518 16,929
15,222 15,518 16,929
302 377 298
938 1,012 1,101
16,683 17,376 18,514
17,924 18,765 19,912
17,924 18,765 19,912
Footnotes to Table 3-3F
Sum of operating costs for year in question, shown on corresponding lines of Table 3-2, plus amortized capital costs assuming an interest rate of ten percent and a capital life of ten years
for mobile sources, 25 years for radiation, and 20 years for all other capital on the accumulated capital investment shown in Table 3-1 since 1972.
November 1990
-------
Costs of Air and Radiation Pollution Control 3-27
Table 3-3G: AIR POLLUTION CONTROL COSTS BY FUNDING SOURCE ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Sec Media 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
3.1 Air Pol Iuti on
3.1.1 Stationary Sources
Existinq Regulations
EPA
Non-EPA Federal 298 359 380 400 420 440 460 479 486 491 495 502 511 522 535
State & Local Govt 1,101 1,133 1,142 1,1 78 1,211 1,241 1,249 1,250 1,246 1,241 1,225 1,199 1,1 72 1,132 1,077
Private 18,514 19,616 19,781 20,236 21,166 21,842 21,920 21,795 21,662 21,474 21,343 21,241 21,145 20,994 20,831
Total Existinq Reas 19,912 21,108 21,303 21,814 22,797 23,523 23,629 23,524 23,394 23,206 23,063 22,942 22,828 22,648 22,442
Federal Iy Mandated 19,912 21,108 21,303 21,814 22,797 23,523 23,629 23,524 23,394 23,206 23,063 22,942 22,828 22,648 22,442
New RequI at i ons
Private 56 129 203 233 255 282 415 596 1,236 1,753 1,943 2,258 2,936 4,093
Total New Regs 56 129 203 233 255 282 415 596 1,236 1,753 1,943 2,258 2,936 4,093
Full Implementation 3,042 3,053 3,084 3,490 3,897 4,301 4,708 5,114
Total Stationary 19,912 21,165 21,432 22,017 23,030 23,778 23,911 26,982 27,044 27,526 28,307 28,782 29,387 30,292 31,650
Federal Iy Mandated 19,912 21,165 21,432 22,01 7 23,030 23,778 23,911 26,982 27,044 27,526 28,307 28,782 29,387 30,292 31,650
3.1.2 Mobi Ie Sources
Existinq RequI at ions
EPA
Private 7,996 8,503 8,983 9,035 7,870 8,355 8,886 9,326 9,593 9,795 9,942 10,174 10,383 10,644 10,888
Total Existinq Reqs 7,996 8,503 8,983 9,035 7,870 8,355 8,886 9,326 9,593 9,795 9,942 10,174 10,383 10,644 10,888
Federal Iy Mandated 7,996 8,503 8,983 9,035 7,870 8,355 8,886 9,326 9,593 9,795 9,942 10,1 74 10,383 10,644 10,888
New RequI at i ons
Private 16 165 181 446 580 559 540 1,217 1,932 2,649 3,349 3,350 3,355
Total New Regs 16 165 181 446 580 559 540 1,21 7 1,932 2,649 3,349 3,350 3,355
Full Implementation 1,326 1,345 1,505 1,522 1,537 1,553 1,568 1,440
Total Mobile 7,996 8,503 8,998 9,201 8,051 8,801 9,465 11,211 11,479 12,517 13,396 14,359 15,285 15,562 15,683
Federal Iy Mandated 7,996 8,503 8,998 9,201 8,051 8,801 9,465 11,211 11,479 12,51 7 13,396 14,359 15,285 15,562 15,683
3.1.3 Undesiqnated Source
EPA
Total Undesignated
Federally Mandated
3.1.4 Total Air Pol Iuti on
Federally Mandated
Footnotes to Table 3-3G
Sum of operating costs for year in question, shown on conesponding lines of Table 3-2A, plus amortized capital costs assuming an interest rate of 10 percent and a capital life often years
for mobile sources and 20 years for all other capital on the accumulated capital investment shown in Tables 3-1 and 3-1A since 1972.
231
250
221
226
235
301
221
21 7
212
207
203
198
193
189
184
231
250
221
226
235
301
221
21 7
212
207
203
198
193
189
184
231
250
221
226
235
301
221
21 7
212
207
203
198
193
189
184
28,139
29,918
30,651
31 ,444
31 ,315
32,880
33,598 ;
38,409 :
38,735 <
10,251
41,906
43,339 <
14,865 <
16,043
47,516
28,139
29,918
30,651
31,444
31 ,315
32,880
33,598 ;
38,409 :
38,735 <
10,251
41 ,906
43,339 <
14,865 <
16,043
47,516
November 1990
-------
3-28
Environmental Investments
Rpt
Table 3-3H: RADIATION POLLUTION CONTROL COSTS BY FUNDING SOURCE ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Media
1991
1992
1993
1995
1997
2000
3.2
Rad i at i on
Existing Regulations
EPA
Non-EPA Federal
State Government
Local Government
Pr i vate
Total Exist Radiation
Federally Mandated
New ReguI at i ons
Local Government
Pr i vate
Total New
3.3
FuI I ImpIementat i on
Total Radiation
Federally Mandated
Total Ai r & Rad 2
Federally Mandate 2
13
353
366
366
366
366
18
321
339
339
340
339
14
347
361
361
361
19
374
393
393
21
21
414
393
25
402
427
427
36
36
463
427
27
430
457
457
52
52
509
457
29
459
67
67
555
32
521
521
603
521
35
518
553
553
653
553
549
587
587
116
116
703
587
41
621
621
134
134
755
621
43
612
655
655
152
152
655
1 70
1 70
674
723
723
,505 30,258 31,019 31,858 31,778 33,389 34,153 39,013 39,387
,505 30,257 31,012 31,837 31,743 33,337 34,086 38,930 39,288
954 42,660 44,146
837 42,526 43,995
45,726
45,556
913
723
956
767
52
706
758
758
210
210
967
758
274
Footnotes to Table 3-3H
Sum of operating costs for year in question, shown on corresponding lines of Table 3-2B, plus amortized capital costs assuming an interest rate of 10 percent and a capital life of 25 years
on the accumulated capital investment shown in Tables 3-1 and 3-1B since 1972.
November 1990
-------
Costs of Air and Radiation Pollution Control
Table 3-4: AIR POLLUTION CONTROL CAPITAL COSTS BY POLLUTANT
(millions of 1986 dollars)
3-29
Media
1972
1973
1974
1975
1976
Air Po11ut i on
Stationary Sources
Parti cu1ates
3,041
4,026
3,816
4,242
3,936
Su1 fur Oxides
1 ,134
1 ,502
1 ,557
1 ,642
1 ,395
NOx and CO
147
195
206
221
222
Hydrocarbons/VOCs
444
588
623
667
670
Lead
28
38
53
39
41
Hazardous
98
129
181
133
140
Other
262
346
485
356
376
Total Stationary
5,155
6,824
6,920
7,299
6, 781
Mobi 1e Sources
Part i cu1ates
Su1 fur Ox i des
NOx and CO
Hydrocarbons/VOCs
Lead
Other
Undes i gnated
268
564
472
2,775
3,256
Total Mobile
268
564
472
2,775
3,256
Undesignated Source
Total Air Pol 1uti on
5,422
7,388
7,392
10,074
10,037
Rad i at i on
Radon
H i gh Lev Nuc1 Waste
Low Lev Nucl Waste
Nucl Fuel Cycl Rsk
Rad i ofrgcy Rad i atn
Uran i um Mill Ta i 1g
Undes i gnated
24
20
16
Total Radiation
24
20
16
Total Ai r & Rad
5,422
7,388
7,416
10,094
10,053
1978
1979
1980
1981
1982
1983
1984
1985
1986
3,585
3,872
3,615
3,457
2,830
2,173
2,347
2,053
1 ,643
979
1 ,012
1 ,067
989
1 ,516
1 ,185
830
432
538
286
310
400
361
288
255
158
1 72
193
866
936
1 ,210
1 ,091
871
770
918
1 ,259
1 ,495
42
44
40
38
42
40
47
1 70
153
146
153
136
129
145
137
215
134
151
390
409
365
345
389
366
379
356
267
6,295
6, 735
6,834
6,409
6,081
4,925
4,894
4,577
4,440
3,685
4,010
3,716
4,189
4,049
4,812
6,125
6,664
6,885
3,685
4,010
3,716
4,189
4,049
4,812
6,125
6,664
6,885
9,980
10,745
10,549
10,598
10,130
9,737
11,020
11,240
11,325
25
22
64
89
30
37
33
55
47
25
22
64
89
30
37
33
55
48
10,005
10,767
10,613
10,687
10,160
9,774
11,053
11,295
11 ,373
977
860
139
230
696
41
141
377
484
548
548
032
8
8
040
November 1990
-------
3-30
Environmental Investments
Footnotes to Table 3-4
Air Stationary Sources: Total stationary source capital expenditures from Table 3-1 (Non-EPA Federal and Private) distributed across pollutants using factors in Appendix B, Table B-8.
Air Mobile Sources: Total mobile source capital expenditures from Table 3-1 (all Private). All mobile source capital expenditures are included as undesignated (i.e., undesignated among
pollutants) because a distinction by pollutant has not been possible. Also see Appendix C, Table C-l.
Radiation: Total radiation capital expenditures from Table 3-1 (all Non-EPA Federal). All radiation capital expenditures are included as undesignated (i.e., undesignated among pollutants)
because a distinction by pollutant has not been possible.
November 1990
-------
Costs of Air and Radiation Pollution Control
Table 3-4A: AIR POLLUTION CONTROL CAPITAL COSTS BY POLLUTANT
(millions of 1986 dollars)
3-31
Rpt
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Air Po11ut i on
Stationary Sources
Existing Regulations
Particulates 1
,643
1 ,920
1 ,845
1 , 792
1 , 739
1 ,687
1 ,634
1 ,581
1 ,529
1 ,476
1 ,423
1 ,371
1 ,318
1 ,265
1 ,213
Su1 fur Oxides
538
570
548
532
516
501
485
469
454
438
423
407
391
376
360
NOx and CO
193
168
161
157
152
147
143
138
134
129
124
120
115
111
106
Hydrocarbons/VOCs 1
,495
1 ,183
1 ,136
1 ,104
1 ,071
1 ,039
1 ,007
974
942
909
877
844
812
779
747
Lead
153
120
115
112
109
105
102
99
96
92
89
86
82
79
76
Hazardous
151
159
152
148
144
139
135
131
126
122
118
113
109
105
100
Other
267
319
306
297
289
280
271
262
254
245
236
227
219
210
201
Total Existing Regs 4
,440
4,438
4,264
4,142
4,020
3,898
3,777
3,655
3,533
3,411
3,290
3,168
3,046
2,924
2,803
New ReguI at i ons
Part i cuIates
SuI fur Ox i des
NOx and CO
Hydrocarbons/VOCs
Lead
Hazardous
Other
Total New Regs
Total Stationary
3.1.2 Mobi Ie Sources
Existing Regulations
Part i cuIates
SuI fur Ox i des
NOx and CO
Hydrocarbons/VOCs
Lead
Other
Undes i gnated E
Total Existing
4,440
477
477
4,915
477
477
4,741
477
477
4,619
106
4,126 4
3,
3,655 3,533 3,411 3,290 3,1
3,046 2,924 2,
653
653
New ReguI at i ons
Parti cuIates
SuI fur Ox i des
NOx and CO
Hydrocarbons/VOCs
Lead
Other
Undes i gnated
Total New
5
91
Total Mobile 6,885
3.1.3 Undesignated Source
3.1.4 Total Air Pol Iuti on 11,325
653 6,
476
476
5
92
97
6,573
566
566
5
92
97
6,663
729
729
147
871
871
41
110
151
7,022
43
113
156
7,222
7,217
7,217
117
186
7,403
7,367
7,367
71
120
191
7,559
7,
7,
73
124
197
7,665
7,623
7,623
75
203
7,827
7,732
7,732
77
132
210
7,941
7,
7,
136
216
8,061
7,956
7,956
141
223
8,179
11,568 11,624 11,192 10,790 10,
10,905 10,
10,936 10,970 10,955 10,995 10,
November 1990
-------
3-32
Environmental Investments
Footnotes to Table 3-4A
Existing Stationary Sources: Total existing stationary source capital expenditures from Table 3-1A (Non-EPA Federal and Private) distributed across pollutants using factors in Appendi
B, Table B-8.
New Stationary Sources: Total new stationary source capital expenditures from Table 3-1A (all Private) distributed across pollutants using factors in Appendix B, Table B-8.
Existing Mobile Sources: Data are total existing mobile source capital expenditures from Table 3-1A (all Private). Also see Appendix C, Table C-1A. All mobile source capital
expenditures are included as undesignated (i.e., undesignated among pollutants) because a distinction by pollutant has not been possible.
New Mobile Sources: Data are total new mobile source capital expenditures from Table 3-1A (all Private). Also see Appendix C, Table C-l A. All mobile source capital expenditure
are included as undesignated (i.e., undesignated among pollutants) because a distinction by pollutant has not been possible.
November 1990
-------
Costs of Air and Radiation Pollution Control
3-33
Table 3-4B: RADIATION POLLUTION CONTROL CAPITAL COSTS BY POLLUTANT
(millions of 1986 dollars)
Rpt
Media
1991
1992
1993
1995
1997
2000
3.2
3.3
Rad i at i on
Existing Regulations
Radon
H i gh Lev NucI Waste
Low Lev NucI Waste
NucI Fuel Cycl Rsk
Rad i ofrqcy Rad i atn
Uran i um Mill Ta i Ig
Undes i gnated
Total Existing
New ReguI at i ons
Radon
H i gh Lev NucI Waste
Low Lev NucI Waste
NucI Fuel Cycl Rsk
Rad i ofrqcy Rad i atn
Uran i um M i I I Ta i Ig
Undes i gnated
Total New Regs
Total Radiation
Total Ai r & Rad
47
47
56
56
11,373 11
56
56
34
79
72
72
79
34 79
90 145
11,71 4 1 1,337 1'
79
151
77
77
93
93
92
92
1 71
1 71
103
103
201
103
103
107
107
210
112
112
220
113
113
117
117
230
118
118
122
122
240
124
124
127
127
251
11,051 11,076 11,057 11,126 11,1 71 11,165 11,215 11,218 11,225 11,232
Footnotes to Table 3-4B
Existing Radiation: Total existing radiation capital expenditures from Table 3-1B (all Non-EPA Federal). All radiation capital expenditures for existing regulations are included as
undesignated (i.e., undesignated among pollutants) because a distinction by pollutant has not been possible.
New Radiation: Estimated expenditures for radon control from Appendix D, Table D-l.
November 1990
-------
3-34
Environmental Investments
Table 3-5: AIR POLLUTION CONTROL OPERATING COSTS BY POLLUTANT
(millions of 1986 dollars)
Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
Air Po11ut i on
Stationary Sources
Parti cu1ates
3,389
3,452
3,078
3,345
3,770
4,306
4,467
4,578
4,073
4,046
3,296
3,493
3,996
3,876
3,427
Su1 fur Oxides
1 ,264
1 ,287
1 ,256
1 ,295
1 ,336
1 ,271
1 ,221
1 ,196
1 ,202
1 ,157
1 , 766
1 ,904
1 ,414
816
1 ,122
NOx and CO
164
167
166
1 74
212
257
357
366
451
422
335
409
269
324
403
Hydrocarbons/VOCs
495
504
503
526
642
777
1 ,079
1 ,107
1 ,363
1 ,277
1 ,014
1 ,238
1 ,564
2,377
3,120
Lead
32
32
43
31
39
46
53
53
45
44
49
64
80
321
319
Hazardous
109
111
146
105
134
157
182
181
154
151
169
220
366
254
315
Other
291
297
391
281
360
420
487
484
411
403
453
588
646
672
557
Total Stationary
5, 744
5,850
5,583
5,756
6,494
7,234
7,845
7,965
7,698
7,501
7,083
7,915
8,335
8,639
9,264
Mobi 1e Sources
Part i cu1ates
Su1 fur Ox i des
NOx and CO
Hydrocarbons/VOCs
Lead
Other
Undes i gnated
1 ,307
2,118
2,082
1 ,828
1 ,597
1 ,494
1 ,293
1 ,027
836
443
192
269
114
(3)
236
Total Mobile
1 ,307
2,118
2,082
1 ,828
1 ,597
1 ,494
1 ,293
1 ,027
836
443
192
269
114
(3)
236
Undesignated Source
341
364
292
286
279
285
230
310
327
278
261
231
237
233
231
Total Air Pol 1uti on
7,392
8,332
7,957
7,871
8,370
9,013
9,368
9,302
8,861
8,221
7,536
8,415
8,685
8,869
9,731
Rad i at i on
Radon
H i gh Lev Nuc1 Waste
Low Lev Nucl Waste
Nucl Fuel Cycl Rsk
Rad i ofrqcy Rad i atn
Uran i um Mill Ta i 1g
Undes i gnated
18
17
253
228
153
168
229
222
204
1 78
195
1 79
183
197
314
Total Radiation
18
1 7
253
228
153
168
229
222
204
1 78
195
1 79
183
197
314
Total Ai r & Rad
7,409
8,349
8,210
8,099
8,523
9,180
9,597
9,524
9,065
8,399
7,731
8,594
8,868
9,066
10,045
November 1990
-------
Costs of Air and Radiation Pollution Control 3-35
Footnotes to Table 3-5
Air Stationary Sources: Total stationary source operating expenditures from Table 3-2 (EPA, Non-EPA Federal, and Private) distributed across pollutants using factors in Appendix B,
Table B-8.
Air Mobile Sources: Total mobile source operating expenditures from Table 3-2 (EPA and Private). Also see Appendix C, Table C-l.
Undesignated Source: Total undesignated source operating expenditures from Table 3-2 (EPA, State and Local Government).
Radiation: Total radiation operating expenditures from Table 3-2 (EPA andNon-EPA Federal). All radiation operating expenditures are included as undesignated (i.e., undesignated among
pollutants) because a distinction by pollutant has not been possible.
November 1990
-------
3-36
Environmental Investments
Table 3-5A: AIR POLLUTION CONTROL OPERATING COSTS BY POLLUTANT
(millions of 1986 dollars)
Rpt
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Air Po11ut i on
Stationary Sources
Existing Regulations
Parti cul ates
3,427
4,300
4,168
4,179
4,400
4
,515
4,631
4,747
4,863
4,979
5,095
5,211
5,327
5,442
5,558
Su1 fur Oxides
1 ,122
1 ,277
1 ,237
1 ,240
1 ,306
1
,340
1 ,375
1 ,409
1 ,444
1 ,478
1 ,512
1 ,547
1 ,581
1 ,616
1 ,650
NOx and CO
403
376
364
365
384
394
404
415
425
435
445
455
465
475
485
Hydrocarbons/VOCs
3,120
2,649
2,567
2,574
2,710
2
, 781
2,853
2,924
2,995
3,067
3,138
3,210
3,281
3,352
3,424
Lead
319
269
261
261
275
282
290
297
304
311
319
326
333
340
348
Hazardous
315
355
344
345
364
373
383
392
402
412
421
431
440
450
459
Other
557
713
691
693
730
749
768
787
807
826
845
864
884
903
922
Total Existing Regs
9,264
9,939
9,632
9,657
10,168
10
,436
10,704
10,972
11,239
11,507
11 ,775
12,043
12,311
12,579
12,846
New Regu1 at i ons
Part i cu1ates
1 7
35
52
52
52
52
52
52
52
52
52
52
Su1 fur Oxides
327
654
654
654
654
1 ,308
NOx and CO
Hydrocarbons/VOCs
5
5
63
66
70
74
79
448
641
t^ead
10
20
29
29
29
29
29
29
29
Hazardous
124
247
557
743
929
1 ,239
1 ,548
1 ,858
Other
Total New Regs
1 7
35
52
62
77
210
391
1 ,031
1 ,548
1 , 738
2,053
2,731
3,888
Total Stationary
9,264
9,939
9,649
9,692
10,220
10
,498
10, 781
11 ,182
11,630
12,538
13,323
13,781
14,364
15,310
16,734
52
29
3.1.2 Mobi Ie Sources
Existing Regulations
Part i cuIates
SuI fur Ox i des
NOx and CO
Hydrocarbons/VOCs
Lead
Other
Undes i gnated
Total Existing
236
236
238
238
213
213
136) (1,766)
136) (1,7661
1,623) (1,549)
1,6231 (1,5491
1,459)
1,4591
New ReguI at i ons
Parti cuIates
SuI fur Ox i des
NOx and CO
Hydrocarbons/VOCs
Lead
Other
Undes i gnated
Total New
134
241
134 134
1 ,372)
1 ,3721
335
700
1 ,035
1,320)
1,3201
318
1 ,40'
1 , 71
Total Mobile
3.1.3 Undesignated Source
3.1.4 Total Air Pol Iuti on
236
231
9, 731
238
250
10,427 1(
213
221
134 134 375 484 438 38
(2) (1,632) (1,319) (1,139) (1,111 ) (1,070) (337) 398
226 235 301 221 21 7 212 207 203
916 8,823 9,480 9,863 10,287 10,772 12,408 13,923
1,246)
1,2461
301
2,100
2,401
1 ,155
198
15,134
1 ,191
1 ,191
283
2,
3,'
1 ,
193
1 ,153)
1 ,1531
265
2,800
3,065
1 ,912
189
17,410
'1 ,135)
I"! .135
249
2,800
3,049
1 ,914
184
18,832
November 1990
-------
Costs of Air and Radiation Pollution Control
3-37
Footnotes to Table 3-5A
Existing Stationary Sources: Total stationary source operating expenditures from Table 3-2A (EPA, Non-EPA Federal, and Private) distributed across pollutants using factors in Appendix
B, Table B-8.
New Stationary Sources: Total stationary source operating expenditures from Table 3-2A (all Private) distributed across pollutants using factors in Appendix B, Table B-8.
Existing Mobile Sources: Data are total mobile source operating expenditures from Table 3-2A (EPA and Private). Also see Appendix C, Table C-l A. All mobile source operating
expenditures are included as undesignated (i.e., undesignated among pollutants) because a distinction by pollutant has not been possible.
New Mobile Sources: Data are total mobile source operating expenditures from Table 3-2A (all Private). Also see Appendix C, Table C-l A. All mobile source operating expenditures
are included as undesignated (i.e., undesignated among pollutants) because a distinction by pollutant has not been possible.
November 1990
-------
3-38
Environmental Investments
Table 3-5B: RADIATION POLLUTION CONTROL OPERATING COSTS BY POLLUTANT
(millions of 1986 dollars)
Rpt
Media
1991
1992
1993
1995
1997
2000
3.2
Rad i at i on
Existing Regulations
Radon
H i gh Lev NucI Waste
Low Lev NucI Waste
NucI Fuel Cycl Rsk
Rad i ofrqcy Rad i atn
Uran i um Mill Ta i Ig
Undes i gnated
Total Existing
Total
3.3 Total
i at i on
31
31
New ReguI at i ons
Radon
H i gh Lev NucI Waste
Low Lev NucI Waste
NucI Fuel Cycl Rsk
Rad i ofrqcy Rad i atn
Uran i um M i I I Ta i Ig
Undes i gnated
Total New
281
281
297
297
322
322
14
370
370
20
314
10,045 10,
281
3 8
300 330
10,383 10,246
14
362
185
20
391
391
25
25
41 7
414
414
31
31
445
437
437
36
459
459
42
36
473
42
502
505
505
53
527
527
59
530
53
558
59
587
550
550
65
65
615
573
573
71
71
10,280 10,732 11,245 12,910 14,453 15,692 17,035 18,025 19,476
Footnotes to Table 3-5B
Existing Radiation: Total existing radiation operating expenditures from Table 3-2B (EPA and Non-EPA Federal). All radiation operating expenditures are included as undesignated (i.e.,
undesignated among pollutants) because a distinction by pollutant has not been possible.
New Radiation: Estimated expenditures for radon control from Appendix D, Table D-l.
November 1990
-------
Costs of Air and Radiation Pollution Control 3-39
Table 3-6: AIR POLLUTION CONTROL COSTS BY POLLUTANT ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Sec Med i a
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
3.1 Air Pol 1uti on
3.1.1 Stationary Sources
Parti cu1ates
3,676
4,119
4,105
4,773
5,569
6,469
6,969
7,446
7,281
7,581
7,098
7,500
8,225
8,298
8,005
Su1 fur Oxides
1 ,371
1 ,536
1 ,651
1 ,846
2,019
2,061
2,103
2,174
2,281
2,329
3,081
3,331
2,920
2,362
2,719
NOx and CO
1 78
199
218
247
306
372
499
537
660
665
606
704
579
650
747
Hydrocarbons/VOCs
537
602
659
746
925
1 ,125
1 ,510
1 ,626
1 ,995
2,012
1 ,832
2,128
2,541
3,473
4,357
Lead
34
39
54
45
58
68
80
83
79
82
91
110
130
387
400
Hazardous
118
132
185
156
199
235
273
286
272
282
314
377
544
444
520
Other
316
354
494
41 7
532
628
731
767
729
754
839
1 ,009
1 ,103
1 ,162
1 ,073
Total Stationary
6,230
6,981
7,366
8,229
9,607
10,959
12,164
12,920
13,298
13,706
13,862
15,159
16,041
16,777
17,821
3.1.2 Mobi Ie Sources
Part i cuIates
SuI fur Ox i des
NOx and CO
Hydrocarbons/VOCs
Lead
Other
Undes i gnated
Total Mobile
1 ,345
1 ,345
2,236
2,236
2,268 2,409
2,268 2,409
2,642
2,642
3,043
3,043
3,367
3,367
3,672
3,672
4,010 4
4,010 4
,213 4
,213 4
,501
,501
5,182
5,182
5,832
5,832
6,269
6,269
7
7
3.1.3 Undesignated Source
341
364
292 286
279
285
230
310
327
278
261
231
237
233
3.1.4 Total Air Pol 1uti on
7,916
9,581
9,927 10,925
12,528
14,287
15,761
16,902
17,635 18
:,196 18
:,624
20,573
22,109
23,279
25
3.2 Rad i at i on
Radon
H i gh Lev NucI Waste
Low Lev NucI Waste
NucI Fuel Cycl Rsk
Rad i ofrqcy fed i atn
Uran i um Mill Ta i Ig
Undes i gnated
Total Radiation
17
1 7
255
255
3.3 Total
7,934 9,598 10,182
231
232 158
1 73
237
232
219
201
220
207
215
233
232 158
1 73
237
232
219
201
220
207
215
233
156 12,686
. 14,460
15,998
17,134
17,854
18,397 18
:,844
20,780
22,324
23,513 25
354
355
Footnotes to Table 3-6
Sum of operating costs for year in question, shown on corresponding lines of Table 3-5, plus amortized capital costs assuming an interest rate of seven percent and a capital life of ten
years for mobile sources, 25 years for radiation, and 20 years for all other capital on the accumulated capital investment shown in Table 3-4 since 1972.
November 1990
-------
3-40
Environmental Investments
Table 3-6A: AIR POLLUTION CONTROL COSTS BY POLLUTANT ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Sec Med i a
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
3.1 Air Pol 1uti on
3.1.1 Stationary Sources
Existina Reaulations
Parti cul ateS
8,005
9,059
9,101
9,281
9,666
9,941
9,924
9,809
9,709
9,564
9,443
9,324
9,226
9,095
8,985
Su1 fur Oxides
2,719
2,927
2,940
2,993
3,107
3,189
3,162
3,099
3,029
2,950
2,893
2,858
2,837
2,811
2,779
NOx and CO
747
735
739
755
788
812
822
827
830
831
832
832
826
81 7
800
Hydrocarbons/VOCs
4,357
3,998
4,023
4,134
4,371
4,541
4,665
4,773
4,874
4,969
5,060
5,145
5,211
5,268
5,295
Lead
400
361
364
375
399
416
430
443
455
467
479
490
501
512
522
Hazardous
520
575
579
593
625
648
661
671
675
684
691
698
704
709
715
Other
1 ,073
1 ,259
1 ,266
1 ,296
1 ,360
1 ,406
1 ,426
1 ,437
1 ,434
1 ,443
1 ,449
1 ,454
1 ,457
1 ,458
1 ,461
Total Existing Regs
17,821
18,915
19,011
19,427
20,317
20,953
21,091
21,059
21,007
20,908
20,847
20,801
20,762
20,671
20,558
New Regu1 at i ons
Part i cti 1 ates
45
107
1 70
187
187
187
187
187
187
187
187
187
187
187
Su1 fur Oxides
327
654
654
654
654
1 ,308
NOx and CO
Hydrocarbons/VOCs
5
5
63
66
70
74
79
448
641
Lead
10
30
50
59
59
59
59
59
59
59
59
Hazardous
124
247
557
743
929
1 ,239
1 ,548
1 ,858
Other
Total New Regs
45
107
1 70
197
21 7
242
375
556
1 ,196
1 ,713
1 ,903
2,218
2,896
4,053
Total Stationary
17,821
18,960
19,118
19,597
20,514
21 ,170
21,333
21 ,434
21,563
22,104
22,560
22,704
22,981
23,567
24,611
3.1.2 Mobi Ie Sources
Existing Regulations
Part i cuIates
SuI fur Ox i des
NOx and CO
Hydrocarbons/VOCs
L^ad
Other
Undes i gnated
Total Existing Regs
7,025
7,025
7,469
7,469
7,885
7,885
7,888 6,664
7,888 6,664
7,098
7,098
7,570
7,570
7,965
7,965
8,210
8,210
8,397
8,397
8,532
8,532
8,745
8,745
8,934
8,934
9,167
9,167
9
9,
New Regu1 at i ons
Parti cu1ates
Su1 fur Ox i des
NOx and CO
Hydrocarbons/VOCs
1 AnH
1
13
1 2
26 39
134 134
249
54
134
498
70
458
86
419
103
375
120
368
137
362
156
354
162
347
168
L03Q
Other
Undes i gnated
Total New Regs
14
161 175
437
568
544
521
700
1 ,195
1 ,400
1 ,906
2,100
2,618
2,800
3,316
2,800
3,315
2,
3,
Total Mobile
7,025
7,469
7,899
8,049 6,839
7,535
8,138
8,509
8,731
9,592
10,438
11,362
12,250
12,482
12.
3.1.3 Undesignated Source
231
250
221
226 235
301
221
21 7
212
207
203
198
193
189
3.1.4 Total Air Pol 1uti on
25,077
26,679
27,238
27,872 27,588
29,005
29,692
30,160
30,507
31,904
33,200
34,265
35,424
36,237
37.
342
1 75
November 1990
-------
Costs of Air and Radiation Pollution Control
3-41
Footnotes to Table 3-6A
Sum of operating costs for year in question, shown on corresponding lines of Table 3-5, plus amortized capital costs assuming an interest rate of seven percent and a capital life of ten
years for mobile sources, 25 years for radiation, and 20 years for all other capital on the accumulated capital investment shown in Tables 3-4 and 3-4A since 1972.
November 1990
-------
3-42
Environmental Investments
Rpt
Table 3-6B: RADIATION POLLUTION CONTROL COSTS BY POLLUTANT ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Media
1991
1992
1993
1995
1997
2000
3.2
Rad i at i on
Existing Regulations
Radon
H i gh Lev NucI Waste
Low Lev NucI Waste
NucI Fuel Cycl Rsk
Rad i ofrqcy Rad i atn
Uran i um Mill Ta i Ig
Undes i gnated
Total Existing
New ReguI at i ons
Radon
H i gh Lev NucI Waste
Low Lev NucI Waste
NucI Fuel Cycl Rsk
Rad i ofrqcy Rad i atn
Uran i um M i I I Ta i Ig
Undes i gnated
Total New
Total
3.3 Total
i at i on
354
354
326
326
347
347
377
377
1
355 327
25,431 27,006
353
27,591
19
396
267
410
410
31
467
467
45
497
497
71
528
528
559
559
590
590
115
622
622
130
654
654
31
441
.029 29,
45
71
525
613
100
659
115
705
130
752
162
162
71 7
71 7
1 79
1 79
30,217 30,728 31,120 32,562 33,905 35,017 36,224 37,085 38,390
Footnotes to Table 3-6B
Sum of operating costs for year in question, shown on corresponding lines of Table 3-5B, plus amortized capital costs assuming an interest rate of seven percent and a capital life of 25
years on the accumulated capital investment shown in Tables 3-4 and 3-4B since 1972.
November 1990
-------
Costs of Air and Radiation Pollution Control
3-43
Table 3-6C: AIR POLLUTION CONTROL COSTS BY POLLUTANT ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Sec Med i a
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
3.1 Air Pol 1uti on
3.1.1 Stationary Sources
Parti cu1ates
3,594
3,927
3,810
4,362
5,051
5,847
6,249
6,620
6,358
6,564
6,004
6,347
7,007
7,025
6,687
Su1 fur Oxides
1 ,340
1 ,464
1 ,537
1 ,687
1 ,822
1 ,833
1 ,849
1 ,893
1 ,970
1 ,992
2,703
2,920
2,486
1 ,917
2,260
NOx and CO
1 74
190
203
226
279
339
458
488
599
595
528
619
490
556
648
Hydrocarbons/VOCs
525
574
614
682
843
1 ,025
1 ,386
1 ,476
1 ,813
1 ,800
1 ,597
1 ,872
2,260
3,157
4,001
Lead
34
37
51
41
52
62
72
75
69
71
79
97
115
368
377
Hazardous
115
126
1 73
141
180
212
247
256
238
244
272
332
492
389
461
Other
309
338
464
378
483
568
661
685
638
653
728
888
971
1 ,021
924
Total Stationary
6,090
6,655
6,853
7,517
8,711
9,886
10,921
11,493
11,686
11 ,919
11 ,910
13,074
13,822
14,434
15,357
3.1.2 Mobi Ie Sources
Part i cuIates
SuI fur Ox i des
NOx and CO
Hydrocarbons/VOCs
Lead
Other
Undes i gnated
Total Mobile
1 ,338
1 ,338
2,215
2,215
2,235
2,235
2,306
2,306
2,457
2,457
2,769
2,769
3,000
3,000
3,205
3,205
3,450
3,450
3,547
3,547
3,740
3,740
4,315 4
4,315 4
,822
,822
5,161
5,161
5
5
3.1.3 Undesignated Source
341
364
292
286
279
285
230
310
327
278
261
231
237
233
3.1.4 Total Air Pol 1uti on
7, 769
9,235
9,380
10,110
11,447
12,941
14,151
15,008
15,462
15,744
15,911
17,619 18
:,881
19,828
21
3.2
Rad i at i on
Radon
H i gh Lev NucI Waste
Low Lev NucI Waste
NucI Fuel Cycl Rsk
Rad i ofrqcy Rad i atn
Uran i um Mill Ta i Ig
Undes i gnated
Total Radiation
3.3 Total
r
231
18
17
255
231
156
1 71
234
229
214
193
212 198
204
221
18
1 7
255
231
156
1 71
234
229
214
193
212 198
204
221
7, 787
9,251
9,635 1C
),341
11,603
13,112 14
,386
15,237
15,676
15,937 16
;,123 17,817 19
o
CO
en
20,050 21
341
341
Footnotes to Table 3-6C
Sum of operating costs for year in question, shown on corresponding lines of Table 3-5, plus amortized capital costs assuming an interest rate of three percent and a capital life of ten years
for mobile sources, 25 years for radiation, and 20 years for all other capital on the accumulated capital investment shown in Table 3-4 since 1972.
November 1990
-------
3-44
Environmental Investments
Table 3-6D: AIR POLLUTION CONTROL COSTS BY POLLUTANT ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Media
1991
1992
1993
1995
1997
2000
Air PoI Iut i on
Stationary Sources
Ex i st i ng fteguI at i or
Parti culates
SuI fur Oxi des
NOx and CO
Hydrocarbons/VOCs
Lead
Hazardous
Other
Total Existing Regs
New ReguI at i ons
Parti cuIates
SuI fur Oxi des
NOx and CO
Hydrocarbons/VOCs
Lead
Hazardous
Other
Total New
6,687
7,689
7,681
7,812
8,150
8,379
8,400
8,352
8,314
8,244
8,191
8,139
8,103
8,044
7,998
2,260
2,452
2,449
2,488
2,589
2,657
2,648
2,613
2,573
2,526
2,495
2,480
2,475
2,467
2,454
648
632
631
642
672
692
702
708
713
71 7
721
723
722
719
709
4,001
3,609
3,604
3,685
3,893
4,034
4,143
4,241
4,333
4,421
4,506
4,588
4,655
4,716
4,757
377
335
334
342
363
378
390
401
411
422
433
443
453
462
472
461
512
511
522
550
569
581
591
597
605
613
621
628
635
642
924
1 ,102
1 ,101
1 ,122
1 ,179
1 ,217
1 ,236
1 ,250
1 ,254
1 ,265
1 ,275
1 ,284
1 ,292
1 ,298
1 ,306
15,357
16,331
16,311
16,614
17,395
17,925
18,100
18,155
18,195
18,202
18,235
18,280
18,329
18,341
18,338
Total Stationary 15,357
3.1.2 Mobi Ie Sources
Existing Regulations
Part i cuIates
SuI fur Ox i des
NOx and CO
Hydrocarbons/VOCs
Lead
Other
32
32
16,363
16,392
131
131
16,745
7
155
17,550
24
1 72
18,097
5
41
195
18,295
148
148
148
148
148
148
148
148
327
654
654
654
654
1 ,308
5
63
66
70
74
79
448
641
50
50
50
50
50
50
50
50
124
247
557
743
929
1 ,239
1 ,548
1 ,858
328
509
1 ,149
1 ,666
1 ,856
2,171
2,849
4,006
482 18
:,704
19,350
19,900
20,135
20,500
21 ,189
22,343
Undes i gnated
Total Existing Regs
5,825
5,825
6,192
6,192
6,530
6,530
6,470
6,470
5,175
5,175
5,545
5,545
5,947
5,947
6,284
6,284
6,502
6,502
6,672
6,672
6, 792
6, 792
6,980
6,980
7,146
7,146
7,345
7,345
7,
7,
New Regu1 at i ons
Parti cu1ates
Su1 fur Ox i des
NOx and CO
Hydrocarbons/VOCs
Lead
Other
Undes i gnated
Total New Regs
1
11
1
21
134
2
32
134
247
45
134
495
58
454
71
413
84
368
99
359
113
351
128
342
133
332
138
11
157
168
426
553
525
498
700
1 ,166
1 ,400
1 ,872
2,100
2,579
2,800
3,275
2,800
3,271
2,
3,
Total Mobile
5,825
6,192
6,541
6,627
5,343
5,971
6,500
6,810
7,000
7,838
8,664
9,559
10,421
10,615
10,
3.1.3 Undesignated Source
231
250
221
226
235
301
221
21 7
212
207
203
198
193
189
3.1.4 Total Air Pol 1uti on
21 ,414
22,804
23,154
23,598
23,128
24,369
25,016
25,509
25,916
27,396
28,767
29,892
31 ,113
31 ,993
33,
325
144
November 1990
-------
Costs of Air and Radiation Pollution Control
3-45
Footnotes to Table 3-6D
Sum of operating costs for year in question, shown on corresponding lines of Table 3-5A, plus amortized capital costs assuming an interest rate of three percent and a capital life often
years for mobile sources and 20 years for all other capital on the accumulated capital investment shown in Table 3-4 and 3-4A since 1972.
November 1990
-------
3-46
Environmental Investments
Rpt
Table 3-6E: RADIATION POLLUTION CONTROL COSTS BY POLLUTANT ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Media
1991
1992
1993
1995
1997
2000
3.2
Rad i at i on
Existing Regulations
Radon
H i gh Lev NucI Waste
Low Lev NucI Waste
NucI Fuel Cycl Rsk
Rad i ofrqcy Rad i atn
Uran i um Mill Ta i Ig
Undes i gnated
Total Existing
Total
i at i on
341
341
New ReguI at i ons
Radon
H i gh Lev NucI Waste
Low Lev NucI Waste
NucI Fuel Cycl Rsk
Rad i ofrqcy Rad i atn
Uran i um M i I I Ta i Ig
Undes i gnated
Total New
341
311
311
330
330
359
359
15
1
312
5
335
15
374
25
25
415
415
415
36
36
452
442
442
47
47
470
470
526
526
554
554
93
583
583
105
528
567
3 . 3 Total Ai r
21,755 23,116 23,
23,972 23,543 24,821 25,505 26,036 26,
81 93
607 647
.002 29,414 30,
105
612
612
117
117
730
130
130
770
143
143
812
31,843 32,764 34,134
Footnotes to Table 3-6E
Existing Radiation: Sum of operating costs for year in question, shown on corresponding lines of Table 3-5B, plus amortized capital costs assuming an interest rate of three percent and
a capital life of 25 years on the accumulated capital investment shown in Tables 3-4 and 3-4B since 1972.
November 1990
-------
Costs of Air and Radiation Pollution Control 3-47
Table 3-6F: AIR POLLUTION CONTROL COSTS BY POLLUTANT ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Sec Med i a
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
3.1 Air Pol 1uti on
3.1.1 Stationary Sources
Parti cu1ates
3,746
4,282
4,356
5,122
6,009
6,998
7,580
8,147
8,066
8,445
8,027
8,480
9,258
9,379
9,124
Su1 fur Oxides
1 ,397
1 ,597
1 , 748
1 ,980
2,185
2,254
2,319
2,413
2,544
2,616
3,403
3,680
3,288
2,740
3,110
NOx and CO
181
207
231
264
329
400
534
579
711
725
672
776
654
730
831
Hydrocarbons/VOCs
547
626
697
799
994
1 ,210
1 ,615
1 , 752
2,150
2,192
2,032
2,346
2,780
3,740
4,660
Lead
35
40
56
49
62
74
86
91
88
91
102
121
142
404
420
Hazardous
120
138
194
168
214
254
295
312
301
314
349
416
587
490
570
Other
322
368
519
451
574
679
791
836
807
839
934
1,112
1 ,215
1 ,282
1 ,199
Total Stationary
6,349
7,257
7,802
8,834
10,367
11,869
13,220
14,131
14,667
15,222
15,518
16,929
17,924
18,765
19,912
3.1.2 Mobi Ie Sources
Part i cuIates
SuI fur Ox i des
NOx and CO
Hydrocarbons/VOCs
Lead
Other
Undes i gnated
Total Mobile
1 ,350
1 ,350
2,253
2,253
2,295
2,295
2,492
2,492
2,791
2,791
3,265
3,265
3,663 4
3,663 4
,051 4
,051 4
,464
,464
4,752
4,752
5,117
5,117
5,885
5,885
6,650
6,650
7,166
7,166
7
7
3.1.3 Undesignated Source
341
364
292
286
279
285
230
310
327
278
261
231
237
233
3.1.4 Total Air Pol 1uti on
8,041
9,874
10,389
11 ,612
13,438
15,419
17,113 18
:, 491 19
',457
20,252
20,897
23,046
24,811
26,165
28
3.2 Rad i at i on
Radon
H i gh Lev NucI Waste
Low Lev NucI Waste
NucI Fuel Cycl Rsk
Rad i ofrqcy Rad i atn
Uran i um Mill Ta i Iq
Undes i gnated
18
1 7
256
233
159
1 75
239
235
223
207
228
216
224
244
Total Radiation
18
1 7
256
233
159
1 75
239
235
223
207
228
216
224
244
3.3 Total Ai r & Rad
8,058
9,891 1C
),645
11,845
13,597
15,594
17,353 18
:,726 19
',681
20,459
21 ,124
23,261
25,034
26,409
231
366
366
28,505
Footnotes to Table 3-6F
Sum of operating costs for year in question, shown on corresponding lines of Table 3-5, plus amortized capital costs assuming an interest rate of ten percent and a capital life of ten years
for mobile sources, 25 years for radiation, and 20 years for all other capital on the accumulated capital investment shown in Table 3-4 since 1972.
November 1990
-------
3-48
Environmental Investments
Table 3-6G: AIR POLLUTION CONTROL COSTS BY POLLUTANT ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Media 1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Air Po11ut i on
Stationary Sources
Existing Regulations
Particulates 9,124
10,222
10,306
10,528
10,953
11,267
11 ,218
11,046
10,893
10,685
10,505
10,329
10,178
9,988
9,822
Sulfur Oxides 3,110
3,331
3,356
3,421
3,548
3,641
3,599
3,512
3,417
3,310
3,230
3,178
3,144
3,103
3,055
NOx and CO 831
823
830
850
887
914
924
927
929
928
927
924
914
901
876
Hydrocarbons/VOCs 4,660
4,327
4,379
4,515
4,777
4,971
5,108
5,225
5,334
5,433
5,529
5,618
5,683
5,736
5,753
Lead 420
384
389
403
429
449
465
479
491
505
518
530
542
554
565
Hazardous 570
629
636
654
689
715
729
739
742
750
757
764
769
773
778
Other 1,199
1 ,393
1 ,407
1 ,443
1 ,514
1 ,566
1 ,586
1 ,596
1 ,588
1 ,594
1 ,597
1 ,599
1 ,598
1 ,593
1 ,593
Total Existing Regs 19,912
21 ,108
21,303
21 ,814
22,797
23,523
23,629
23,524
23,394
23,206
23,063
22,942
22,828
22,648
22,442
New Regu1 at i ons
Parti cu1ates
56
129
203
220
220
220
220
220
220
220
220
220
220
220
Su1 fur Oxides
327
654
654
654
654
1 ,308
NOx and CO
Hydrocarbons/VOCs
5
5
63
66
70
74
79
448
641
Lead
12
35
57
66
66
66
66
66
66
66
66
Hazardous
124
247
557
743
929
1 ,239
1 ,548
1 ,858
Other
Total New Regs
56
129
203
233
255
282
415
596
1 ,236
1 , 753
1 ,943
2,258
2,936
4,093
Total Stationary 19,912
21 ,165
21 ,432
22,017
23,030
23,778
23,911
23,940
23,991
24,442
24,817
24,885
25,086
25,584
26,536
3.1
3.1
3.1
2 Mobi Ie Sources
Existing Regulations
Part i cuIates
SuI fur Ox i des
NOx and CO
Hydrocarbons/VOCs
Lead
Other
Undes i gnated
Total Existing Regs
New ReguI at i ons
Parti cuIates
SuI fur Ox i des
NOx and CO
Hydrocarbons/VOCs
Lead
Other
Undes i gnated
Total New
8,503
8,503
Total Mobi le 7,996
3.1.3 Undesignated Source 231
3.1.4 Total Air Pol Iuti on 28,139
8,503
250
29,918 30,651
,983
9,035
7,870
8,355
8,886
9,326
9,593
9,795
9,942
10,174
10,383
10,644
10,
,983
9,035
7,870
8,355
8,886
9,326
9,593
9,795
9,942
10,174
10,383
10,644
10,
1
2
2
250
500
461
423
380
375
371
364
359
15
30
45
62
80
98
117
137
157
1 78
185
192
134
134
134
700
1 ,400
2,100
2,800
2,800
2,
16
165
181
446
580
559
540
1 ,217
1 ,932
2,649
3,349
3,350
3,
,998
9,201
8,051
8,801
9,465
9,885
10,134
11 ,012
11 ,874
12,822
13,732
13,994
14,
221
226
235
301
221
21 7
212
207
203
198
193
189
,651
31 ,444
31 ,315
32,880
33,598
34,041
34,337
35,662
36,894
37,905
39,011
39,767
40,
355
200
November 1990
-------
Costs of Air and Radiation Pollution Control
3-49
Footnotes to Table 3-6G
Sum of operating costs for year in question, shown on corresponding lines of Table 3-5 A, plus amortized capital costs assuming an interest rate of ten percent and a capital life of ten years
for mobile sources and 20 years for all other capital on the accumulated capital investment shown in Tables 3-4 and 3-4A since 1972.
November 1990
-------
3-50
Environmental Investments
Rpt
Table 3-6H: RADIATION POLLUTION CONTROL COSTS BY POLLUTANT ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Media
1991
1992
1993
1995
1997
2000
3.2
Rad i at i on
Existing Regulations
Radon
H i gh Lev NucI Waste
Low Lev NucI Waste
NucI Fuel Cycl Rsk
Rad i ofrqcy Rad i atn
Uran i um Mill Ta i Ig
Undes i gnated
Total Existing
Total
i at i on
3 . 3 Total Ai r
366
366
New ReguI at i ons
Radon
H i gh Lev NucI Waste
Low Lev NucI Waste
NucI Fuel Cycl Rsk
Rad i ofrqcy Rad i atn
Uran i um M i I I Ta i Ig
Undes i gnated
Total New
366
339
339
361
361
393
393
21
1
340
21
414
28,505 30,258 31,019 31,
427
427
36
457
457
52
36
463
52
509
521
521
553
553
67
587
587
116
621
621
134
67
555
603
653
31,778 33,389 34,153 34,645 34,
116
703
36,365 37,
134
755
655
655
152 170
152 170
712 39,872
723
723
758
758
210
190 210
913 967
',680 41,929
Footnotes to Table 3-6H
Sum of operating costs for year in question, shown on corresponding lines of Table 3-5B, plus amortized capital costs assuming an interest rate of 10 percent and a capital life of 25 years
on the accumulated capital investment shown in Tables 3-4 and 3-4B since 1972.
November 1990
-------
4-1
4. COSTS OF WATER POLLUTION CONTROL
The costs of water pollution control are broken down into several categories and discussed in the
sections listed below:
4.1. Water quality;
4.1.1. Pointsource;
4.1.2. Non-point source;
4.1.3. Groundwater protection;
4.2. Total water quality;
4.3. Drinking water; and
4.4. Total water pollution control costs.
The costs reported in this chapter are for existing water programs and new regulations for which
cost information is available. New regulations for which cost information is not available, and
pending legislation that would augment current water pollution control efforts, are noted in the
appropriate sections. Efforts directed to groundwater pollution control are discussed in section 4.1.3.
However, the costs of these efforts are for the most part listed and discussed in other chapters of this
report.
Estimates of the capital costs of water pollution control are presented in Table 4-1. Table 4-2
presents estimates of operating costs, and Table 4-3 presents estimates of annualized costs calculated
using capital amortization rates of three, seven, and ten percent. Annualized costs for all water
pollution control programs except drinking water are based on a 30-year capital life. Annualized
costs for the drinking water program are based on a 20-year capital life.
The discussion of water costs that follows focuses on the annualized cost estimates calculated
using an amortization rate of seven percent for capital costs. Annualized costs calculated at a three
percent rate are approximately 16 to 19 percent lower, and those calculated at the ten percent rate are
13 to 16 percent higher, than the annualized cost estimates discussed below.
4.1. WATER QUALITY
Water quality costs are defined as those pursuant to the Marine Protection, Sanctuaries and
Research Act of 1972, and the Clean Water Act (CWA) as last amended in 1987.1 They represent
expenditures intended to improve the quality of the Nation's natural waters, including expenditures
for wastewater treatment as well as those incurred in transporting wastewater from its point of origin
to treatment facilities. Also included under water quality costs are "full implementation" costs which
1 Legislation has been introduced which would strengthen the water quality standards program
for coastal waters. EPA has estimated that the House version (HR 2647, "Coastal Defense
Initiative") would require expenditures of $124 million by EPA and states in FY 1991, increas-
ing to $158 million for FY 1993. These costs are not included in the tables.
November 1990
-------
4-2
Environmental Investments
represent the projected additional expenditures needed to meet secondary treatment requirements for
municipal wastewater by the year 2000, beyond what is projected to be spent by Federal, state and
local governments for this purpose throughout the 1990s.
Water pollution control costs are broken down by "point" and "non-point" sources. Non-point
source expenditures are those incurred to control pollution from sources other than single, specific
locations. Non-point sources include land runoff, precipitation, drainage, and seepage, including
agricultural storm drainage, and irrigation return flows. The costs of controlling point and non-point
sources of water pollution by each sector are initially discussed separately.
The EPA and other Federal agencies such as the U.S. Army Corps of Engineers, the U. S. Fish and
Wildlife Service, and National Marine Fisheries Service, as well as states also incur costs for habitat
protection, which involves both point and non-point source control. EPA and state expenditures for
habitat protection cannot be readily broken out from other water quality costs, however. Non-EPA
Federal costs for habitat protection are not included in the data base.
4.1.1. Point Source
4.1.1.1. EPA
EPA expenditures prior to 1977 were associated primarily with program development for the
regulation of conventional pollutants, including: establishing water quality standards; developing
a permit program for pollutant discharge; and setting effluent limitations for various industrial
discharges. Under authority of the CWA and the Marine Protection, Research and Sanctuaries Act,
EPA also established regulations for ocean disposal of wastes.
In recent years EPA expenditures have been primarily for oversight and guidance of regulatory
implementation by the states. EPA costs, on an annualized basis, decreased throughout the 1980s
except for a slight increase after the 1987 Amendments to the CWA. Among other things, the 1987
Amendments directed EPA to develop and maintain adequate controls for toxic discharges.
EPA expenditures for regulatory development, implementation, and oversight are provided in
Table 4-2. Future EPA implementation costs may increase beyond the projections given in this report
because of the potential for revisions in effluent limitation guidelines resulting from the new review
process mandated under Section 304(m) of the CWA Amendments.
EPA capital expenditures, shown in Table 4-1, are for municipal wastewater treatment under the
Construction Grants Program,2 which provides matching funds to localities to build publicly-owned
wastewater treatment plants. EPA construction grants increased dramatically after the passage of the
CWA in 1972, increasing from $1.6 billion in 1973 to $6.2 billion in 1977. EPA expenditures fell
2 Includes spending pursuant to the CWA Construction Grants Program (Title II) and the 1987
CWA Amendments State Revolving Fund Program (Title VI).
November 1990
-------
Costs of Water Pollution Control
4-3
off somewhat over the next few years and have declined steadily since 1981. The lower levels of
Federal construction grants since 1977 reflect the 1977 CWA Amendments that provided for dele-
gation of water quality management to the states.
Before 1985, EPA paid 75 percent of the eligible capital cost of conventional treatment facilities;
local governments, some with state assistance, paid the remainder. In 1985, the Federal share was
cut to 55 percent. By 1988, Federal assistance had fallen to about $2.3 billion. Beginning in 1988,
Federal assistance will be shifted to the capitalization of 50 state revolving funds (SRFs) at a
substantially reduced level of funding. Federal assistance will decrease steadily to about $434 million
in 1994 and zero thereafter.
4.1.1.2. State and Local Government
State expenditures support program implementation and administration of the National Pollutant
Discharge Elimination System (NPDES) permit program to control discharges of water pollutants.
Expenditures increased steadily throughout the 1980s as states assumed greater responsibility for
implementation and enforcement of the regulations. As a result of the 1987 CWA Amendments,
states are now working towards meeting water quality objectives involving toxic discharges. Other
state water quality expenditures are for the Great Lakes, Chesapeake Bay and other estuary clean-up
programs. While states have received considerable Federal assistance for some of these efforts, many
are financed through state legislative appropriations. The cost projections do not necessarily reflect
state and local expenditures to develop and implement state water quality standards established in
addition to Federal effluent guidelines.
Federal grants are a small source of state spending for implementation of water quality programs.
Between 1981 and 1987, they averaged 6.4 percent of total state operating and maintenance
expenditures, falling to 4.9 percent in 1988. Currently, states set aside a small portion of construction
grants to fund water quality planning and management. As Federal assistance is phased out, states
will have to find other funding sources for these activities.
As mentioned above, the 1987 amendments to the CWA shifted Federal funds for municipal
wastewater treatment facility construction from local communities to states. EPA grants to com-
munities have been replaced by grants to states for the purpose of capitalizing SRFs over the years
1989-94. States must match Federal grants by 20 percent on the dollar. The SRFs will enable states
to provide financial assistance to local governments in the form of low interest loans, loan refi-
nancing, and loan guarantees. Federal grants to SRFs for wastewater treatment construction are not
authorized beyond 1994.
Local government expenditures cover a large portion of total construction costs and all the
operation and maintenance costs of municipal wastewater treatment facilities. About 100
municipalities contract with the private sector for the operation of wastewater treatment facilities.
Most of these facilities are relatively small (less than ten million gallons per day) with limited
November 1990
-------
4-4
Environmental Investments
technical resources and finances.3 Annualized local government costs for all wastewater services,
including sewerage and wastewater treatment, increased from a little over $3 billion in 1972 to $10.1
billion in 1987. Local annual costs are projected to increase significantly throughout the 1990s,
reaching an estimated $16.5 billion by the year 2000.
The cost category labeled "full implementation" in Tables 4-1, 4-2, and 4-3 provides data on the
amount of expenditures for wastewater treatment required to bring municipal wastewater treatment
into full compliance with the fishable/swimmable goals of the Clean Water Act. These estimates
represent costs beyond what local governments are expected to spend on wastewater treatment over
the years 1990-2000. The annualized costs required to meet wastewater treatment needs above
projected expenditures for this purpose are estimated to increase steadily from $300 million in 1990
to about $2.8 billion by 1995, and to almost $6 billion by the year 2000. (The derivation of these full
implementation costs is detailed in Appendix A.)
4.1.1.3. Private
Private water quality expenditures are associated mainly with the control of industrial effluents
in compliance with NPDES permits, and for the pretreatment of discharges to municipal wastewater
treatment facilities. Water quality costs to the private sector, on an annualized basis, increased from
about $3.9 billion in 1972 to almost $16 billion in 1987. Future private water quality costs are
projected to continue this trend, reaching $23 billion by the year 2000. The estimates of private costs
for new regulations ($565 million in the year 2000) do not include the costs of complying with new
requirements for the control of toxic discharges and expanded pretreatment requirements that are
expected to be implemented within the next few years.
4.1.2. Non-point Source
For purposes of this report, non-point source costs include public and private expenditures for
water quality related conservation practices, highway erosion control, feedlot operations, and
stormwater runoff. These costs are a very small component of current and proj ected future total water
pollution control costs, but may eventually escalate well beyond the projections shown in the tables.
This result is possible because non-point sources currently are the largest contributor to the water
pollution problem and additional measures to control these sources may be initiated within the next
few years.
4.1.2.1. EPA
Due to lack of data, no estimates of EPA expenditures directed to non-point source pollution
control are provided.
3 Apogee Research, Inc., The Nation's Public Works: Report of Wastewater Management,
prepared for the National Council on Public Works Improvements, May 1987.
November 1990
-------
Costs of Water Pollution Control
4-5
4.1.2.2. Non-EPA Federal
The non-EPA Federal costs shown in Table 4-1 are primarily for U.S. Department of Agriculture
(USDA) programs involving construction and maintenance of erosion control structures. These
programs, which are implemented through the Soil and Conservation Service and the Agricultural
Stabilization and Conservation Service, provide capital grants to help finance erosion control
practices, provide research funding for the development of new control technologies and best
management practices designed to reduce erosion rates on farmland, and provide technical assistance
to farmers implementing erosion control measures.
Rather than attribute all costs for erosion control practices to non-point source water pollution
control in this report, information from the USDA on the proportion of their program costs targeted
explicitly for water quality programs in 1986, the only year for which this data was broken out, was
used to calculate the share of erosion control costs directed to water pollution control in years
1972-1986. The resulting estimates show that total capital costs for non-point source control have
remained fairly stable since 1972, at around $70 million per year. Operating costs have also remained
stable at just over $70 million per year.
4.1.2.3. State and Local Government
State and local expenditures for non-point source pollution control include the costs of reducing
the risks of erosion run-off due to new highway construction and the costs of supporting administra-
tive programs.
As with the non-EPA Federal cost estimates, state and local funding for agricultural erosion
control programs are not entirely for water quality maintenance. Therefore, only a portion of these
costs were attributed to water quality programs. All state and local highway erosion control costs
were counted as water quality control efforts, however.
State and for local costs for capital construction have generally run around $50 million per year.
Operating costs have been higher, averaging close to $200 million per year. The majority of these
costs are for maintaining highway erosion control measures. Both capital and operating costs
remained relatively constant from 1972 to 1986.
4.1.2.4. Private
Private expenditures for non-point source pollution control are primarily for agricultural erosion
control and feedlot run-off control efforts. Private farms are required to match a small portion of
Federal and state grant assistance for erosion control. As with public funding for agricultural erosion
control, only a portion of these private expenditures were attributed to non-point source pollution
control efforts.
November 1990
-------
4-6
Environmental Investments
Capital expenditures by private operators of farms and feedlots remained relatively stable over
the period 1972-1986, averaging around $70 million per year. Operating expenses have also been
stable, averaging $25 million per year.
4.1.3. Groundwater Protection
Since 1984, EPA has spent $35 million to assist states in building the institutional capacity to
develop groundwater protection programs. These expenditures are for program organization, state
regulatory development, education, and data management. The states have also contributed funds
to these activities. Currently, no expenditures are being incurred by local communities or the private
sector under this Clean Water Act Program. The costs of developing state groundwater and wellhead
protection programs are discussed in Section 4.3.
Many other pollution control programs are directed in part to groundwater pollution control. It
is not feasible to differentiate groundwater protection expenditures from broader measures of costs
for these programs. Consequently, such costs are not included in this chapter. Nevertheless, it should
be recognized that prevention of groundwater contamination is a major benefit of pollution control
expenditures associated with several EPA regulatory programs. For example, costs presented in
Chapter 5 relating to hazardous wastes corrective action under RCRA and Superfund have a major
focus on the prevention and mitigation of groundwater contamination. Other RCRA rules discussed
in Chapter 5, such as those involving restrictions on the disposal of hazardous wastes on land and in
underground injection wells, as well as technical standards for underground storage tanks and solid
waste disposal facilities, have a significant groundwater protection component. Programs to register
and control the use of pesticides and toxic substances, which are discussed in Chapter 6, also afford
some protection of groundwaters.
4.2. TOTAL WATER QUALITY
On an annualized basis, total water quality costs have increased substantially over time, from just
over $9 billion in 1972 to an estimated $32.3 billion in 1987. This trend is projected to continue into
the future, with total annualized costs reaching $56 billion by the year 2000. These costs are driven
primarily by private spending for the control of industrial effluent discharges and the pretreatment
of wastewater, and by local government spending for the construction and operation of sewerage and
wastewater treatment facilities. Even with relatively large projected expenditures for municipal
wastewater treatment over the coming years, however, significantly more expenditures would be
needed to eliminate existing and projected future wastewater treatment needs by the year 2000.
4.3. DRINKING WATER
The nation's drinking water program derives from the 1974 Safe Drinking Water Act (SDWA) as
amended in 1986. The Act directs EPA to establish "Maximum Contaminant Levels" or treatment
requirements to ensure that public drinking water supplies do not pose unreasonable health risks.
Interim regulations addressing microbiological contaminants, inorganics, radionuclides, a few
pesticides, and the formation of trihalomethanes were promulgated by EPA in the 1970s and early
November 1990
-------
Costs of Water Pollution Control
4-7
1980s. The 1986 SDWA amendments require EPA to promulgate standards for 83 contaminants, and
to establish new regulations addressing surface water filtration and mandatory disinfection for all
water supplies. These new regulations are currently being developed and implemented.
Implementation of the SDWA requirements involves a close Federal/state partnership whereby
states assume a primacy role for implementing and enforcing Federal standards. The states also incur
some costs for compliance with regulatory requirements, although most compliance costs are incurred
by local government and private water supply systems.
As discussed in Chapter 1, only costs associated with improving environmental quality are
included in this report. Thus, only the costs for drinking water treatment are shown in the tables.4
Separate line items are provided to show total treatment costs and treatment costs pursuant to Federal
mandates. The estimates were derived from a number of studies that estimated this "quality"
component of total drinking water costs. (These studies are discussed in Appendix F.)
4.3.1. EPA
Federal program expenditures for the SDWA were between $70 and $80 million per year over the
first half of the 1980s. In recent years they have been approximately $100 million per year. The
increase is due mainly to expanded requirements imposed by the SDWA 1986 Amendments. Further
increases will be necessary to fully implement the SDWA mandate. EPA costs are projected to reach
$143 million in 1995 and $169 million by the year 2000.
4.3.2. State Government
State governments incur costs for implementation of drinking water programs as well as relatively
low costs for compliance with applicable standards. Current expenditures for regulatory program
implementation are approximately $95 million per year. State implementation expenditures are
expected to increase as more Federal standards are promulgated. State compliance expenditures
account for less than one percent of total state and local expenditures, however. This reflects that
government water supplies are mostly owned and operated at the local level.
State costs are expected to increase in future years, reaching $150 million in 1995 and $185
million by the year 2000. These increases are driven in part by state efforts to develop and implement
wellhead protection programs directed towards protecting groundwaters used by public water
systems.
4 It should be noted that the bulk of expenditures made by water suppliers are unrelated to
compliance with EPA contaminant limits or other measures to improve drinking water quality.
Most drinking water costs are associated with supplying water to users, including expenditures
for water acquisition, transport, and distribution. These are not included in this report, however
November 1990
-------
4-8
Environmental Investments
4.3.3. Local Government
The bulk of all expenditures for treatment of drinking water supplies are incurred by local
governments, the primary supplier of drinking water. Local government costs for water treatment
increased steadily overtime, from over $600 million in 1972 to $1.5 billion in 1980, and $2.4 billion
in 1987. Only about $200 million of year 1987 costs were pursuant to Federal mandates, however,
and none prior to 1979. Local government costs are expected to increase steadily in the coming years
as new Federal regulations are promulgated and expanding populations increase the total demand for
treated drinking water. New regulations pursuant to the 1986 SDWA amendments are expected to
cost an additional $1.8 billion in local government costs by the year 2000. Total costs for local
drinking water treatment are projected to reach $4 billion in 1995, and $5 billion by the year 2000.
Federally-mandated costs are estimated to account for approximately 28 percent of year 1995 costs
and 35 percent of total costs by the year 2000.
4.3.4. Private
The private sector is also a significant supplier of treated drinking water supplies. Private costs
for the treatment of drinking water were an estimated $540 million in 1987. Future private costs are
projected to reach $1.1 billion by the year 2000.
4.3.5. Total Drinking Water Costs
Total annualized costs associated with the treatment of drinking water supplies increased steadily
overtime, from a little more than $800 million in 1972 to $3.1 billion in 1987. Local governments
accounted for approximately 78 percent of these costs, and the private sector, 17 percent. Only a very
small percentage of total drinking water treatment costs incurred in recent years were pursuant to
Federally-mandated standards, however, and none prior to 1979. In 1987, the estimated costs
associated with Federal standards were approximately $200 million, or less than seven percent of total
costs for drinking water treatment. Costs for Federal requirements are expected to increase dramatic-
ally in the next several years as new rules pursuant to the SDWA amendments of 1986 are
implemented. Annualized costs due to Federal requirements are projected to reach $1.4 billion by
1995 and $2.2 billion by the year 2000. Most of these costs will be borne by local governments.
Federally-mandated costs would represent approximately 27 percent of the estimated $5.3 billion in
total drinking water costs in 1995, and 34 percent of the estimated $6.5 billion in total costs in the
year 2000.
4.4. TOTAL WATER POLLUTION CONTROL COSTS
On an annualized basis, total water pollution control costs increased steadily over time, from
about $9.9 billion in 1972 to $37.5 billion in 1987. Costs associated with point source control
accounted for over 90 percent of these expenditures. Most of the historical point source control costs
are due to local expenditures for sewerage services and wastewater treatment, and to private
expenditures for the control of industrial effluents and the pretreatment of wastewater discharges to
treatment facilities. Future costs are expected to increase significantly, reaching a projected $58 bil-
November 1990
-------
Costs of Water Pollution Control 4-9
lion by the year 2000. These future costs are also driven primarily by point source control
expenditures by local governments and the private sector. Moreover, if the costs associated with
fulfilling the nation's current and projected future wastewater treatment needs are included, total costs
would reach $64 billion by the year 2000. If only future costs associated with Federally-mandated
programs are considered, however, then projected total costs drop slightly to approximately $60
billion in 2000. This difference is accounted for by non-Federally-driven costs for the treatment of
drinking water.
November 1990
-------
4-10 Environmental Investments
Table 4-1: WATER POLLUTION CONTROL CAPITAL COSTS
(millions of 1986 dollars)
Rpt
Sec Media 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986
4.1 Water Qua I i ty
4.1.1 Po i nt Source
Existing Regulations
EPA
1 ,044
1 ,607
3,312
3,906
4,589
6,209
5,067
5,349
5,734
4,755
4,413
3,316
2,828
2,950
3,113
Non-EPA Federal
375
486
405
364
390
407
284
191
192
344
377
563
479
State Government
261
258
291
296
307
370
403
430
435
424
357
287
355
395
405
Local Government
4,056
2,861
2,181
1 ,869
926
664
955
1 ,164
1 , 761
1 ,935
2,020
2,728
2,406
2,085
2,675
Private
7,091
7,759
6, 763
6,925
7,572
7,731
7,827
7,514
6,574
5,670
5,442
5,425
5,838
5,783
5,781
Total Point Source
12,452
12,486
12,922
13,482
13,799
15,338
14,642
14,865
14,787
12,975
12,423
12,101
11,803
11 ,776
12,453
Federally Mandated
12,452
12,486
12,922
13,482
13,799
15,338
14,642
14,865
14,787
12,975
12,423
12,101
11,803
11 ,776
12,453
4.1.2 Non-Poi nt Source
Existing Regulations
EPA
Non-EPA Federal
75
80
58
66
73
81
77
61
64
67
6
9 71
66
71
54
State Government
60
55
48
52
51
44
39
41
43
41
4
6 44
47
46
47
Local Government
60
60
59
59
60
61
60
59
59
59
6
0 60
59
60
58
Private
75
79
65
71
76
82
77
64
67
67
6
9 70
66
71
54
Total Water Qual ity
12,721
12,761
13,151
13,730 14
,058
15,605 14
,895
15,
090
15,020
13,211
12,66
6 12,345
12,043
12,023
12,
666
Federally Mandated
12,721
12,761
13,151
13,730 14
,058
15,605 14
,895
15,
090
15,020
13,211
12,66
6 12,345
12,043
12,023
12,
666
4.3 Dri nki ng Water
EPA
Non-EPA Federa
State Government
4
25
63
83
60
58
47
23
27
31
Local Government 602
630
709
749
731
662
654
749
816
81 7
783
725
728
855
997
Private 135
141
159
168
164
148
146
168
183
183
1 75
162
163
191
223
Total Drinking Water 736
772
868
91 7
895
CO
825
979
1 ,081
1 ,060
1 ,016
935
915
1 ,073
1 ,251
Federally Mandated
40
40
40
40
40
40
40
40
Total Water Costs 13,457
13,533
14,019
14,647 14
,953
16,420
15,720
16,070
16,101
14,270
13,682
13,280
12,958
13,096
13,917
Federally Mandated 12,721
12,761
13,151
13,730 14
,058
15,605
14,895
15,130
15,060
13,251
12,706
12,385
12,083
12,063
12,706
November 1990
-------
Costs of Water Pollution Control 4-11
Footnotes to Table 4-1
WATER QUALITY COSTS
POINT SOURCE
EPA: From annual Justification of Appropriation Estimates for Committee on Appropriations (data for 1972-1974 are Budget Authority; data for 1975-1986 are Outlays).
Non-EPA Federal: 1974-86 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis,
U.S. Department of Commerce.
State Government: From Appendix F, Table F-7. See Appendix F for detail.
Local Government: From Appendix F, Table F-7. See Appendix F for detail.
Private: From Appendix F, Table F-7. See Appendix F for detail.
Point Source Existing Federally Mandated: Assumed to be 100 percent of point source water quality capital costs.
Total Point Source Federally Mandated: Assumed to be 100 percent of total point source water quality capital costs.
NON-POINT SOURCE WATER QUALITY COSTS: Figures estimated on the basis of the regulations and sources listed in Appendix E.
Non-Point Source Existing Federally Mandated: Assumed to be 100 percent of non-point source water quality capital costs.
Total Non-Point Source Federally Mandated: Assumed to be 100 percent of total non-point water quality capital costs.
Total Water Quality Federally Mandated: Assumed to be 100 percent of total water quality capital costs.
DRINKING WATER
EPA: Assumed to be zero; EPA drinking water costs are assumed to be operating costs.
State Government: From Appendix F, Table F-l 2. See Appendix F for detail.
Local Government: From Appendix F, Table F-l 2. See Appendix F for detail.
November 1990
-------
4-12 Environmental Investments
Private: From Appendix F, Table F-l 2. See Appendix F for detail.
Existing Federally Mandated: For years 1972-78, figures represent 0 percent of capital outlays for existing pollution control regulations. For years 1979-86, figures estimated on
basis of the regulations and sources listed in Appendix F, Table F-5.
Total Federally Mandated: Figures represent the sum of total outlays associated with regulations for drinking water pollution control.
November 1990
-------
Costs of Water Pollution Control
Table 4-1 A: WATER POLLUTION CONTROL CAPITAL COSTS
4-13
(millions of 1986 dollars)
Rpt
Media
1
1991 1992 1993
1995
1997
2000
4.1
4.1 .1
Water Qua I i ty
Po i nt Source
Existinq Regulations
EPA 3 113
Non-EPA Federal 479
State Government 405
Local Government 2,675
Private 5,781
Total Existing Regs12,453
Federal ly Maridatidl 2 , 453
New ReguI at i ons
Local Government
Pr i vate
Total New Regs
FuI I Implementati on
2 ,831
616
431
3,173
5,854
12,905
12,905
Total Pc
Federal
i nt Source 12,453
ly Mandated 12,453
12,905
12,905
2 ,271
690
452
2,229
5,363
11,005
11,005
314
314
11 ,319
11 ,319
2,035
764
463
2,246
5,217
10,728
10,728
31
31
11,042
11,042
1,971
638
474
2,262
5,072
10,616
10,616
19
314
333
312
484
2,278
4,927
1 ,395
586
495
2,294
4,782
9,951
9,951
1 ,060
506
2,310
4,637
9,410
9,410
1
1,757 1,822
116
116
2,281 2,751
12,706
12,706
12,322
12,322
12,348
12,348
12,162
12,162
434
1 ,133
516
2,327
4,491
8,902
8,902
3,189
12,091
12,091
1 ,207
527
2,343
4,346
8,423
8,423
1 ,281
537
2,359
4,201
8,379
8,379
1 ,355
548
2,375
4,056
8,335
8,335
1 ,429
559
2,392
3,911
8,290
8,290
1 ,503
569
2,408
3,765
8,246
8,246
12,021
12,021
11 ,950
11 ,950
11
11
11
11
11 ,738
11 ,738
4.1
2 Non-Poi nt Source
Existing Regulations
Non-EPA Fediral
State Government
Local Government
Private
Total Existing Regs
Federally MahdatSd
Total Nc
Federal
Total Wc
Federal
Iy Mandated
:er Qua I i ty 12,
Iy Mandated 12,
4.3
Dr i nk i ng Water
Existind Regulations
State GbverTiment
Local Government
Pr i vate
Total Existing Regs
FederaI Iy Mandate
New ReguI at i ons
31
997
223
1 ,251
220
1 ,220
51
897
201
1 ,149
54
896
201
1 ,150
57
912
204
1 ,173
1 ,1
63
944
211
1 ,218
215
1 ,241
977
219
1 ,264
71
993
222
74
1 ,009
226
1 ,309
77
1 ,025
230
1 ,332
1 ,041
233
1 ,354
1 ,057
237
1 ,377
1 ,577
580
2,424
3,620
8,201
8,201
3,597 3,571 3,545 3,519 3,493 3,467
11
11
54
63
63
62
61
61
60
59
58
58
57
56
56
55
54
47
41
40
40
39
38
38
37
36
35
35
34
33
33
32
58
59
59
59
59
59
59
59
59
59
59
58
58
58
58
54
63
62
61
60
59
58
58
57
56
55
54
53
52
51
213
227
224
222
219
21 7
215
212
210
208
205
203
200
198
196
213
227
224
222
219
21 7
215
212
210
208
205
203
200
198
196
213
227
224
222
219
21 7
215
212
210
208
205
203
200
198
196
213
227
224
222
219
21 7
215
212
210
208
205
203
200
198
196
666
13,132
11
,543
11
,264
12,926
12,539
12,563
12,374
12,301
12,228
12,155
12,082
12
,009
11
,937
11,864
666
13,132
11
,543
11
,264
12,926
12,539
12,563
12,374
12,301
12,228
12,155
12,082
12
,009
11
,937
11,864
1 ,066
239
1 ,390
Local Government
29
59
65
310 707
960
1 ,128
1 ,380
1 ,460
1 ,109
522
184
184
Pr i vate
7
13
15
69 158
215
253
309
327
249
117
41
41
Total New Regs
36
73
80
379 865
1 ,175
1 ,381
1 ,690
1 , 787
1 ,358
639
225
225
Total Drinking Water 1,251
1 ,220
1 ,185
1 ,223
1 ,253
1,575 2,083
2,416
2,645
2,976
3,096
2,690
1 ,993
1 ,602
1 ,615
Federally Mandated 40
40
76
73
80
379 865
1 ,175
1 ,381
1 ,690
1 , 787
1 ,358
639
225
225
Tota1 Water Costs 13,917
14,352
12,728
12,487
14,179
14,113 14,646
14,790
14,946
15,204
15,251
14,772
14,002
13,539
13,479
Federally Mandated 12,706
13,172
11 ,619
11 ,336
13,006
12,918 13,428
13,549
13,682
13,918
13,942
13,440
12,648
12,162
12,089
November 1990
-------
4-14
Environmental Investments
Footnotes to Table 4-1A
WATER QUALITY COSTS
POINT SOURCE
EPA: Figures for 1986-1988 represent Outlays from annual Justification of Appropriation Estimates for Committee on Appropriations. Allocations of Construction Grant funds under
Title II of the Clean Water Act end in 1990. Allocations to states by EPA under Title VI (State Revolving Funds) begin in 1989 and end in 1994. Figures for 1989 and 1990 represent
50% Title II expenditures and 50% Title VI expenditures. Figures for 1991 -1994 are Title VI expenditures only. Projections for 1995-2000 cannot be made based on current trends.
Non-EPA Federal: 1986 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis, U.S.
Department of Commerce. Linear projection of expenditures for 1987-2000 based on historical data for the years 1981-1986.
Existing State Government: 1986 and 1987 data from Appendix F, Table F-7. State expenditures will continue through 2000; however, each state will determine the amount it will
give to local governments. Linear projection of expenditures for 1988-2000 based on historical data for the years 1978-1987.
Existing Local Government: 1986 and 1987 data from Appendix F, Table F-7. Linear projection of expenditures for 1988-2000 based on historical data for the years 1972-1987.
Private: 1986 and 1987 figures from Appendix F, Table F-7. Linear projection of expenditures for 1988-2000 based on historical data for the years 1972-1987.
Point Source Existing Federally Mandated: Assumed to be 100 percent of point source water quality capital costs.
New Local Government Water Quality: Estimated on the basis of the regulations and sources listed in Appendix A.
New Private Water Quality: Estimated on the basis of the regulations and sources listed in Appendix A.
Full Implementation: Estimated on the basis of the regulations and sources listed in Appendix A.
Total Point Source Federally Mandated: Assumed to be 100 percent of total point source water quality capital costs.
NON-POINT SOURCE WATER QUALITY COSTS: 1986 figure estimated on basis of regulations and sources presented in Appendix E; linear projection of expenditures for 1987-
2000 based on historical data for the years 1972-1986.
Non-Point Source Existing Federally Mandated: Assumed to be 100 percent of total non-point source water quality capital costs.
Total Water Quality Federally Mandated: Assumed to be 100 percent of total water quality capital costs.
November 1990
-------
Costs of Water Pollution Control 4-15
DRINKING WATER
EPA: Assumed to be zero; EPA drinking water costs are assumed to be operating costs.
State Government: 1986 and 1987 From Appendix F, TableF-12. See Appendix F for detail. Linear projection of expenditures for 1988-2000 based on data for the years 1972-1987.
Local Government: 1986 and 1987 from Appendix F, Table F-12. See Appendix F for detail. Linear projection of expenditures for 1988-2000 based on data for the years 1972-1987.
Private: 1986 and 1987 figures from Appendix F, Table F-12. See Appendix F for detail. Linear projection of expenditures for 1988-2000 based on data for the years 1972-1987.
Existing Federally Mandated: For the years 1989-2000, figures represent 0 percent of the capital outlays for existing pollution control. For 1986-1988, figures are estimated on basis
of regulations and sources presented in Appendix F, Table F-5.
New Local Government Drinking Water: Estimated on the basis of the regulations and sources listed in Appendix A.
New Private Drinking Water: Estimated on the basis of the regulations and sources listed in Appendix A.
Total Federally Mandated: Figures represent the sum of total capital outlays associated with total existing regulations and total new regulations.
November 1990
-------
4-16 Environmental Investments
Table 4-2: WATER POLLUTION CONTROL OPERATING COSTS
(millions of 1986 dollars)
Rpt
Sec Media 1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1
4.1 Water Qual i ty
4.1.1 Po i nt Source
Existing Regulations
EPA 321
327
582
361
499
477
447
403
478
420
369
313
250
245
Non-EPA Federal
247
284
299
271
289
283
293
256
301
311
282
309
State Government 938
903
910
981
1
,015
1 ,019
1 ,001
994
1 ,057
1 ,093
1 ,012
979
1 ,025
1 ,102
1 ,
Local Government 2,944
3,120
3,455
3,828
4
,172
4,395
4,541
4,760
5,088
5,568
6,011
6,299
6,472
6, 737
7,
Private 3,337
3,665
3,656
3,814
4
,278
4,678
4,903
5,223
5,145
5,222
5,012
5,591
5,892
6,236
6,
Total Point Source 7,540
8,015
8,850
9,268
10
,263
10,841
11 ,181
11,663
12,061
12,559
12,704
13,494
13,920
14,630
15,
Federally Mandated 7,540
8,015
8,850
9,268
10
,263
10,841
11 ,181
11,663
12,061
12,559
12,704
13,494
13,920
14,630
15,
4.1.2 Non-Poi nt Source
Existing Regulations
EPA
Non-EPA Federal 81
86
62
70
79
87
81
66
68
74
75
77
73
76
State Government 220
200
1 76
191
183
153
134
149
152
148
165
156
1 71
163
Local Government 220
220
219
219
220
220
220
219
219
219
219
220
219
220
Private 24
26
22
24
27
29
28
24
25
26
28
30
29
31
4.2 Total Water Quality 8,085
8,547
9,328
9,771
10
, 772
11,330
11,644
12,121
12,526
13,026
13,191
13,976
14,413
15,119
16,
Federally Mandated 8,085
8,547
9,328
9,771
10
, 772
11,330
11,644
12,121
12,526
13,026
13,191
13,976
14,413
15,119
16,
4.3 Dri nki ng Water
EPA 10
9
11
10
19
51
67
85
91
108
95
94
86
87
Non-EPA Federal
State Government
10
18
18
23
30
33
33
30
32
Local Government 590
598
623
665
719
750
808
879
918
993
1 ,053
1 ,074
1 ,107
1 ,168
1 ,
Private 132
134
140
149
161
168
181
197
206
222
236
241
248
262
Total Drinking Water 732
741
774
824
899
979
1 ,073
1 ,180
1 ,238
1 ,353
1 ,417
1 ,442
1 ,471
1 ,549
1 ,
Federally Mandated
167
167
167
167
167
167
167
4.4 Tota1 Water Costs 8,817
9,288
10,102
10,596
11
,672
12,309
12,717
13,301
13,764
14,379
14,608
15,419
15,884
16,668
17,
Federally Mandated 8,085
8,547
9,328
9,771
10
, 772
11,330
11,644
12,288
12,693
13,193
13,358
14,143
14,580
15,286
16,
986
226
381
189
211
627
634
634
58
1 73
218
25
109
109
86
42
239
277
645
167
753
276
November 1990
-------
Costs of Water Pollution Control
4-17
Footnotes to Table 4-2
WATER QUALITY COSTS
POINT SOURCE
EPA: Data from annual Justification of Appropriation Estimates for Committee on Appropriations (data for 1972-1974 are Budget Authority; data for 1975-1986 are Outlays).
Non-EPA Federal: 1981-86 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis,
U.S. Department of Commerce.
State Government: From Appendix F, Table F-7. See Appendix F for detail.
Local Government: From Appendix F, Table F-7. See Appendix F for detail.
Private: From Appendix F, Table F-7. See Appendix F for detail.
Point Source Existing Federally Mandated: Assumed to be 100 percent of point source water quality operating costs.
Total Point Source Federally Mandated: Assumed to be 100 percent of total point source water quality operating costs.
NON-POINT SOURCE WATER QUALITY COSTS: Figures estimated on the basis of the regulations and sources listed in Appendix E.
Non-Point Source Existing Federally Mandated: Assumed to be 100 percent of non-point source water quality operating costs.
Total Non-Point Source Federally Mandated: Assumed to be 100 percent of total non-point source water quality operating costs.
Total Water Quality Federally Mandated: Assumed to be 100 percent of total water quality operating costs.
DRINKING WATER
EPA: Data from annual Justification of Appropriation Estimates for Committee on Appropriations (data for 1972-1974 are Budget Authority; data for 1975-1986 are Outlays).
State Government: From Appendix F, Table F-l 2. See Appendix F for detail.
Local Government: From Appendix F, Table F-l 2. See Appendix F for detail.
November 1990
-------
4-18 Environmental Investments
Private: From Appendix F, Table F-l 2. See Appendix F for detail.
Existing Federally Mandated: For the years 1972-1978, figures represent 0 percent of the outlays for existing pollution control regulations. For 1979-86, figures estimated on basis
of regulations and sources listed in Appendix F, Table F-5.
Total Federally Mandated: Figures represent the sum of total operating outlays for regulations associated with water pollution control.
November 1990
-------
Costs of Water Pollution Control 4-19
Table 4-2A: WATER POLLUTION CONTROL OPERATING COSTS
(millions of 1986 dollars)
Rpt
Sec Med i a
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
226
232
242
235
278
288
222
210
198
186
1 74
162
150
137
125
381
369
386
404
422
440
457
475
493
510
528
546
564
581
599
.189
1 ,210
1 ,156
1 ,172
1 ,187
1 ,202
1 ,217
1 ,233
1 ,248
1 ,263
1 ,278
1 ,294
1 ,309
1 ,324
1 ,339
.211
7,450
7,716
8,021
8,325
8,630
8,934
9,239
9,543
9,848
10,152
10,457
10, 761
11,066
11 ,370
.627
7,360
7,011
7,243
7,474
7,706
7,938
8,170
8,402
8,634
8,866
9,097
9,329
9,561
9,793
.634
16,621
16,512
17,074
17,686
18,266
18,769
19,326
19,884
20,441
20,998
21 ,555
22,112
22,669
23,227
.634
16,621
16,512
17,074
17,686
18,266
18,769
19,326
19,884
20,441
20,998
21 ,555
22,112
22,669
23,227
2
5
1 7
30
40
73
73
73
73
73
73
73
73
137
274
489
489
489
489
489
489
489
489
489
489
2
142
291
519
529
562
562
562
562
562
562
562
562
1 76
358
586
861
1 ,180
1 ,540
1 ,897
2,251
2,603
2,953
3,299
.634
16,621
16,514
17,216
18,153
19,143
19,884
20,750
21,626
22,543
23,457
24,369
25,278
26,184
27,088
.634
16,621
16,514
17,216
18,153
19,143
19,884
20,750
21,626
22,543
23,457
24,369
25,278
26,184
27,088
58
69
68
67
67
66
65
65
64
63
63
62
61
61
60
1 73
147
145
142
139
136
134
131
128
126
123
120
118
115
112
218
219
219
219
219
219
219
219
219
219
218
218
218
218
218
25
29
29
30
30
30
31
31
31
32
32
32
33
33
33
475
464
461
458
455
452
449
446
442
439
436
433
430
427
424
475
464
461
458
455
452
449
446
442
439
436
433
430
427
424
475
464
461
458
455
452
449
446
442
439
436
433
430
427
424
475
464
461
458
455
452
449
446
442
439
436
433
430
427
424
.109
17,085
16,975
17,674
18,608
19,595
20,333
21 ,195
22,068
22,982
23,893
24,802
25,708
26,611
27,512
.109
17,085
16,975
17,674
18,608
19,595
20,333
21 ,195
22,068
22,982
23,893
24,802
25,708
26,611
27,512
86
94
95
97
103
108
127
132
137
143
148
153
159
164
169
42
23
42
45
48
51
54
56
59
62
65
68
70
73
76
.239
1 ,261
1 ,195
1 ,159
1 ,194
1 ,230
1 ,265
1 ,301
1 ,336
1 ,372
1 ,407
1 ,442
1 ,478
1 ,513
1 ,531
277
283
268
260
268
275
283
291
299
307
315
323
331
339
343
.645
1 ,661
1 ,600
1 ,560
1 ,613
1 ,664
1 , 729
1 , 780
1 ,832
1 ,883
1 ,935
1 ,986
2,038
2,090
2,119
167
167
167
73
146
146
260
424
474
565
71 7
779
808
934
1 ,029
1 ,029
16
33
33
58
95
106
126
161
1 74
181
209
230
230
89
1 78
1 79
319
519
580
691
878
953
990
1 ,143
1 ,259
1 ,259
.645
1 ,661
1 ,689
1 , 738
1 , 792
1 ,982
2,248
2,360
2,523
2,761
2,888
2,976
3,181
3,349
3,379
167
167
256
1 78
1 79
319
519
580
691
878
953
990
1 ,143
1 ,259
1 ,259
. 753
18,746
18,664
19,412
20,399
21,577
22,581
23,555
24,591
25,743
26,781
27,778
28,888
29,960
30,890
.276
17,252
17,231
17,852
18,786
19,913
20,852
21 , 775
22,759
23,860
24,846
25,791
26,850
27,870
28,771
4.1 Water Qua I i ty
4.1.1 Poi nt Source
Existinq Regulations
EPA y y
Non-EPA Federal
State Government 1
Local Government 7
Private 6
Total Existinq Reqsl5
Federally Mandated15
New ReguI at i ons
Local "Government
Pr i vate
Total New Regs
FuI I Implementati on
4.1.2 Non-Poi nt Source
Existing Regulations
Non-EPA Fediral
State Government
Local Government
Private
Total Existing Regs
Federally MahdatSd
Total Non-Point Source
Federally Mandated
4.2 Total Water Quality 16
Federally Mandated 16
4.3 Dri nki ng Water
Existing Regulations
EPA y y
State Government
Local Government 1
Pr i vate
Total Existing Regs 1
Federally Mandated
New ReguI at i ons
Local "Government
Pr i vate
Total New Regs
Total Drinking Water 1
Federally Mahdated
4.4 Total Water Costs 17
Federally Mandated 16
November 1990
-------
4-20
Environmental Investments
Footnotes to Table 4-2A
WATER QUALITY COSTS
POINT SOURCE
EPA: Data from annual Justification of Appropriation Estimates for Committee on Appropriations (data for 1986-1988 are Outlays; amount for 1989 is Current Estimate; amount
for 1990 is Request). Linear projection of expenditures for 1991-2000 based on historical data for the years 1972-1990.
Non-EPA Federal: 1986 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis, U.S.
Department of Commerce. Linear projection of expenditures for 1987-2000 based on historical data for the years 1981-1986.
Existing State Government: 1986 and 1987 data from Appendix F, Table F-7. Linear projection of expenditures for 1988-2000 based on historical data for the years 1978-1987.
Existing Local Government: 1986 and 1987 data from Appendix F, Table F-7. Linear projection of expenditures for 1988-2000 based on historical data for the years 1972-1987.
Existing Private: 1986 and 1987 data from Appendix F, Table F-7. Linear projection of expenditures for 1988-2000 based on historical data for the years 1972-1987.
Point Source Existing Federally Mandated: Assumed to be 100 percent of point source water quality operating costs.
New Local Government: Estimated on the basis of the regulations and sources listed in Appendix A.
New Private: Estimated on the basis of the regulations and sources listed in Appendix A.
Full Implementation: Estimated on the basis of the regulations and sources listed in Appendix A.
Total Point Source Federally Mandated: Assumed to be 100 percent of total point source water quality operating costs.
NON-POINT SOURCE WATER QUALITY COSTS: 1986 figure estimated on basis of regulations and sources presented in Appendix E; linear projection of expenditures for 1987-
2000 based on historical data for the years 1972-1986.
Non-Point Source Existing Federally Mandated: Assumed to be 100 percent of non-point source water quality operating costs.
Total Non-Point Source Federally Mandated: Assumed to be 100 percent of total non-point source water quality operating costs.
Total Water Quality Federally Mandated: Assumed to be 100 percent of total water quality operating costs.
November 1990
-------
Costs of Water Pollution Control 4-21
DRINKING WATER
EPA: Data from annual Justification of Appropriation Estimates for Committee on Appropriations (data for 1986-1988 are Outlays; amount for 1989 is Current Estimate; amount
for 1990 is Request). Linear projection of expenditures for 1991-2000 based on historical data for the years 1972-1990.
State Government: 1986 and 1987 figures from Appendix F, Table F-12. Linear projection of expenditures for 1988-2000 based on data for the years 1972-1987.
Existing Local Government: 1986 and 1987 figures from Appendix F, Table F-12. Linear projection of expenditures for 1988-2000 based on data for the years 1972-1987.
Existing Private: 1986 and 1987 figures from Appendix F, Table F-12. Linear projection of expenditures for 1988-2000 based on historical data for the years 1972-1987.
Existing Federally Mandated: For the years 1989-2000, figures represent 0 percent of the total outlays for pollution control. For the years 1986-1988, figures are estimated on
regulations and sources presented in Appendix F, Table F-5.
New Local Government: Estimated on the basis of the regulations and sources listed in Appendix A.
New Private: Estimated on the basis of the regulations and sources listed in Appendix A.
Total Federally Mandated: Figures represent the sum of total outlays associated with total existing regulations and total new regulations.
November 1990
-------
4-22
Environmental Investments
Table 4-3: WATER POLLUTION CONTROL COSTS ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Sec Media 1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
4.1 Water Qual i ty
4.1.1 Po i nt Source
Existing Regulations
EPA 405
540
1 ,063
1 ,156
1 ,664
2,142
2,521
2,908
3,445
3,770
4,075
4,286
4,451
4,684
4,915
Non-EPA Federal
277
353
401
402
452
479
511
490
550
588
589
662
772
State Government 959
945
975
1 ,070
1 ,129
1 ,163
1 ,177
1 ,205
1 ,303
1 ,373
1 ,320
1 ,311
1 ,386
1 ,495
1 ,614
Local Government 3,271
3,677
4,188
4,712
5,130
5,407
5,630
5,943
6,413
7,049
7,654
8,163
8,529
8,962
9,652
Private 3,909
4,862
5,397
6,114
7,188
8,211
9,067
9,992
10,444
10,978
11,206
12,222
12,994
13,805
14,661
Total Point Source 8,543
10,025
11,901
13,406
15,513
17,326
18,846
20,526
22,116
23,660
24,806
26,571
27,949
29,607
31 ,615
Federally Mandated 8,543
10,025
11,901
13,406
15,513
17,326
18,846
20,526
22,116
23,660
24,806
26,571
27,949
29,607
31 ,615
4.1.2 Non-Poi nt Source
Existing Regulations
EPA
Non-EPA Federal 87
98
79
92
107
121
123
112
119
130
137
145
146
155
142
State Government 225
209
189
208
205
1 78
162
180
187
186
207
201
220
216
230
Local Government 225
230
233
239
244
249
254
258
263
267
272
277
282
287
290
Private 30
38
39
47
57
65
70
72
78
84
92
99
104
111
110
4.2 Total Water Quality 9,110
10,600
12,441
13,991
16,125
17,940
19,455
21 ,147
22,763
24,328
25,514
27,294
28,700
30,376
32,386
Federa11y Mandated 9,110
10,600
12,441
13,991
16,125
17,940
19,455
21 ,147
22,763
24,328
25,514
27,294
28,700
30,376
32,386
4.3 Dri nki ng Water
EPA 10
9
11
10
19
51
67
85
91
108
95
94
86
87
86
Non-EPA Federal
State Government
10
21
27
40
52
61
65
64
69
82
Local Government 647
714
807
919
1 ,042
1 ,136
1 ,255
1 ,397
1 ,512
1 ,665
1 , 799
1 ,888
1 ,990
2,131
2,296
Private 145
160
181
206
233
254
281
313
339
373
403
423
446
477
514
Total Drinking Water 802
883
998
1 ,135
1 ,294
1 ,451
1 ,623
1 ,823
1 ,982
2,198
2,357
2,471
2,586
2,765
2,979
Federally Mandated
1 71
1 75
1 78
182
186
190
193
197
4.4 Tota1 Water Costs 9,912
11,484
13,439
15,126
17,419
19,391
21,078
22,970
24,745
26,525
27,871
29,765
31,286
33,141
35,365
Federa11y Mandated 9,110
10,600
12,441
13,991
16,125
17,940
19,455
21 ,318
22,938
24,506
25,696
27,480
28,890
30,569
32,583
Footnotes to Table 4-3
Sum of operating costs for year in question, shown on corresponding lines of Table 4-2, plus amortized capital costs assuming an interest rate of 7 percent and a capital life of 30 years
for water quality and 20 years for drinking water on the accumulated capital investment shown in Table 4-1 since 1972.
November 1990
-------
Costs of Water Pollution Control
Table 4-3A: WATER POLLUTION CONTROL COSTS ANNUALIZED AT 7 PERCENT
4-23
(millions of 1986 dollars)
Rpt
Media
1
1991 1992 1993
1995
1997
2000
4.1
4.1 .1
Water Qua I i ty
Po i nt Source
Existinq Regulations
EPA y y 4
Non-EPA Federal
State Government
Local Government
Private
Total Existinq Reqs31
Federal ly Maridat(§d31
New ReguI at i ons
Local "Government
Pr i vate
Total New
1
9
14
FuI I Implementati on
Total Point Source 31
Federally Mandated 31
4.1.2 Non-Poi nt Source
Existinq Requlations
Non-EPA Fediral
State Government
Local Government
Private
Total Existinq Reqs
Federally MahdatSd
Total Non-Point Source
Federally Mandated
4.2 Total Water Quality 32
Federally Mandated 32
4.3 Dri nki nq Water
Existind Requlations
EPA y y
State Government
Local Government 2
Pr i vate
Total Existing Reqs 2
Federally Mandated
New ReguI at i ons
.915
5,149
5,343
5,499
5,702
5,863
5,910
5,970
5,993
5,981
5,969
5,957
5,944
5,932
5,920
772
810
883
962
1 ,048
1 ,139
1 ,236
1 ,339
1 ,448
1 ,563
1 ,684
1 ,811
1 ,944
2,083
2,227
.614
1 ,670
1 ,653
1 , 705
1 , 758
1 ,813
1 ,868
1 ,924
1 ,981
2,038
2,097
2,156
2,217
2,278
2,340
.652
10,147
10,592
11,078
11,565
12,053
12,542
13,033
13,525
14,018
14,513
15,008
15,506
16,004
16,504
.661
15,866
15,949
16,601
17,242
17,871
18,488
19,093
19,687
20,269
20,840
21 ,398
21,945
22,481
23,004
.615
33,642
34,419
35,846
37,314
38,738
40,043
41 ,359
42,633
43,869
45,102
46,331
47,556
48,777
49,996
.615
33,642
34,419
35,846
37,314
38,738
40,043
41 ,359
42,633
43,869
45,102
46,331
47,556
48,777
49,996
2
5
19
33
52
85
85
85
85
85
85
85
85
25
188
350
565
565
565
565
565
565
565
565
565
565
27
193
368
598
61 7
650
650
650
650
650
650
650
650
31 7
646
1 ,058
1 ,555
2,131
2,781
3,426
4,066
4,701
5,332
5,958
.615
33,642
34,447
36,038
38,000
39,982
41 ,719
43,564
45,415
47,300
49,178
51,047
52,907
54,760
56,604
.615
33,642
34,447
36,038
38,000
39,982
41 ,719
43,564
45,415
47,300
49,178
51,047
52,907
54,760
56,604
142
157
162
166
1 70
1 74
1 79
183
187
191
195
198
202
206
210
230
207
208
208
209
209
210
210
210
210
210
210
210
210
210
290
296
300
305
310
315
319
324
329
333
338
343
347
352
356
110
119
124
129
135
140
145
150
155
159
164
169
1 73
1 78
182
771
779
794
809
823
838
852
866
880
893
907
920
933
946
959
771
779
794
809
823
838
852
866
880
893
907
920
933
946
959
771
779
794
809
823
838
852
866
880
893
907
920
933
946
959
771
779
794
809
823
838
852
866
880
893
907
920
933
946
959
.386
34,421
35,241
36,847
38,823
40,820
42,571
44,430
46,295
48,194
50,085
51,967
53,840
55,706
57,563
.386
34,421
35,241
36,847
38,823
40,820
42,571
44,430
46,295
48,194
50,085
51 ,967
53,840
55,706
57,563
296
514
979
197
65
2,412
540
3,111
201
95
89
2,430
544
3,158
205
97
97
2,479
555
3,227
103
105
2,600
582
3,390
108
113
2,723
610
3,554
127
122
2,791
625
3,665
132
131
2,857
640
3,760
137
140
2,918
654
3,849
143
150
2,976
667
3,936
148
160
3,038
681
4,026
153
169
3,108
696
4,127
159
1 77
3,180
712
4,228
164
182
3,244
727
4,317
34
Local Government
76
154
161
304
535
675
872
1 ,155
1
354
1 ,489
1 ,663
1 , 776
1
Pr i vate
1 7
34
36
68
120
151
195
259
303
333
373
398
Total New Regs
92
188
196
372
654
826
1 ,068
1 ,414
1
658
1 ,822
2,036
2,174
2
Total Drinking Water 2,979
3,111
3,250
3,415
3,587
3,926
4,319
4,586
4,917
5,350
5
684
5,949
6,264
6,491
6
Federally Mandated 197
201
297
226
234
410
692
864
1 ,105
1 ,452
1
696
1 ,860
2,074
2,208
2
Total Water Costs 35,365
37,531
38,491
40,262
42,410
44,746
46,890
49,017
51 ,212
53,543
55
769
57,916
60,104
62,197
64
Federally Mandated 32,583
34,622
35,538
37,073
39,057
41 ,230
43,263
45,294
47,400
49,645
51
780
53,827
55,914
57,913
59
169
185
3,286
736
4,376
30
402
,134
November 1990
-------
4-24
Environmental Investments
Footnotes to Table 4-3A
Sum of operating costs for year in question, shown on corresponding lines of Table 4-2A, plus amortized capital costs assuming an interest rate of 7 percent and a capital life of 30 years
for water quality and 20 years for drinking water on the accumulated capital investment shown in Tables 4-1 and 4-1A since 1972.
November 1990
-------
Costs of Water Pollution Control
4-25
Table 4-3B: WATER POLLUTION CONTROL COSTS ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Media 1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
Water Qua 1 i ty
Po i nt Source
Existing Regulations
EPA 374
462
886
864
1 ,236
1 ,531
1 , 760
1 ,989
2,356
2,541
2,715
2,829
2,910
3,055
3,195
Non-EPA Federal
266
328
364
354
392
407
431
404
459
486
477
532
629
State Government 951
930
951
1 ,038
1 ,087
1,110
1,112
1 ,128
1 ,213
1 ,270
1 ,207
1 ,189
1 ,253
1 ,351
1 ,458
Local Government 3,151
3,473
3,919
4,387
4,779
5,036
5,231
5,509
5,927
6,505
7,052
7,479
7,774
8,146
8,756
Private 3,699
4,423
4,758
5,271
6,121
6,915
7,539
8,242
8,500
8,866
8,934
9,789
10,388
11,028
11 ,713
Total Point Source 8,175
9,288
10,782
11,888
13,587
14,947
16,034
17,274
18,427
19,587
20,366
21,773
22,802
24,112
25,751
Federa11y Mandated 8,175
9,288
10,782
11 ,888
13,587
14,947
16,034
17,274
18,427
19,587
20,366
21,773
22,802
24,112
25,751
Non-Poi nt Source
Existing Regulations
EPA
Non-EPA Federal 85
94
73
84
97
109
107
95
100
109
114
120
119
126
111
State Government 223
206
184
202
197
169
151
168
1 75
1 72
192
185
202
196
209
Local Government 223
226
228
232
235
239
241
243
247
250
253
256
259
262
264
Private 28
33
33
38
46
52
55
54
59
63
68
73
76
82
79
Total Water Quality 8,734
9,847
11,299
12,443
14,161
15,515
16,589
17,835
19,007
20,181
20,993
22,408
23,458
24,778
26,414
Federally Mandated 8,734
9,847
11,299
12,443
14,161
15,515
16,589
17,835
19,007
20,181
20,993
22,408
23,458
24,778
26,414
Dr i nk i ng Water
EPA 10
9
11
10
19
51
67
85
91
108
95
94
86
87
86
Non-EPA Federal
State Government
10
20
25
35
46
53
56
54
58
71
Local Government 630
680
754
846
949
1 ,025
1 ,126
1 ,248
1 ,341
1 ,472
1 ,584
1 ,654
1 , 735
1 ,854
1 ,992
Private 141
152
169
190
213
230
252
280
300
330
355
370
389
415
446
Total Drinking Water 782
842
933
1 ,046
1 ,181
1 ,315
1 ,465
1 ,638
1 , 768
1 ,955
2,087
2,175
2,265
2,415
2,595
Federally Mandated
1 70
1 72
1 75
1 78
180
183
186
189
Total Water Costs 9,516
10,689
12,233
13,489
15,342
16,830
18,054
19,473
20,775
22,136
23,079
24,582
25,723
27,193
29,009
Federally Mandated 8,734
9,847
11,299
12,443
14,161
15,515
16,589
18,005
19,179
20,356
21 ,171
22,588
23,641
24,964
26,602
Footnotes to Table 4-3B
Sum of operating costs for year in question, shown on corresponding lines of Table 4-2, plus amortized capital costs assuming an interest rate of 3 percent and a capital life of 30 years
for water quality and 20 years for drinking water on the accumulated capital investment shown in Table 4-1 since 1972.
November 1990
-------
4-26
Environmental Investments
Table 4-3C: WATER POLLUTION CONTROL COSTS ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Media
1
1990 1991
1992 1993
1995
1997
2000
Water Qua I i ty
1 Po i nt Source
Existinq Regulations
EPA y y 3
Non-EPA Federal
State Government 1
Local Government 8
Private 11
Total Existinq Reqs25
Federal ly Maridat§d25
New ReguI at i ons
Local "Government
Pr i vate
Total New
4.1
FuI I Implementati on
Total Point Source
2 Non-Poi nt Source
Existinq Regulations
Non-EPA Fediral
State Government
Local Government
Private
Total Existing Regs
Federally MahdatSd
Federally Mandated
.195
3,345
3,471
3,568
3,712
3,818
3,823
3,857
3,867
3,855
3,843
3,830
3,818
3,806
3,794
629
648
701
758
818
882
950
1 ,022
1 ,098
1 ,177
1 ,260
1 ,347
1 ,437
1 ,532
1 ,630
.458
1 ,501
1 ,471
1 ,509
1 ,549
1 ,589
1 ,629
1 ,670
1 ,712
1 , 754
1 , 797
1 ,840
1 ,884
1 ,928
1 ,973
. 756
9,157
9,537
9,956
10,376
10,797
11 ,218
11,641
12,064
12,488
12,913
13,338
13,765
14,192
14,620
.713
12,745
12,669
13,167
13,658
14,141
14,617
15,085
15,547
16,000
16,446
16,885
17,316
17,740
18,157
. 751
27,397
27,849
28,958
30,112
31 ,227
32,238
33,275
34,287
35,273
36,258
37,240
38,221
39,198
40,174
. 751
27,397
27,849
28,958
30,112
31 ,227
32,238
33,275
34,287
35,273
36,258
37,240
38,221
39,198
40,174
2
5
18
32
48
81
81
81
81
81
81
81
81
16
169
322
537
537
537
537
537
537
537
537
537
537
18
1 74
340
569
585
618
618
618
618
618
618
618
618
265
541
885
1 ,301
1 , 782
2,325
2,865
3,400
3,931
4,459
4,983
. 751
27,397
27,867
29,132
30,718
32,336
33,708
35,194
36,687
38,217
39,741
41 ,258
42,770
44,275
45,774
. 751
27,397
27,867
29,132
30,718
32,336
33,708
35,194
36,687
38,217
39,741
41 ,258
42,770
44,275
45,774
111
125
127
130
132
135
137
139
142
144
146
148
151
153
155
209
185
185
184
183
183
182
181
180
1 79
1 78
1 77
1 76
1 75
1 74
264
268
271
274
276
279
282
285
288
291
294
297
300
303
306
79
86
89
93
96
100
103
106
109
113
116
119
122
125
128
663
664
672
680
688
696
704
712
719
727
734
741
749
756
762
663
664
672
680
688
696
704
712
719
727
734
741
749
756
762
663
664
672
680
688
696
704
712
719
727
734
741
749
756
762
663
664
672
680
688
696
704
712
719
727
734
741
749
756
762
.414
28,060
28,539
29,812
31,406
33,032
34,412
35,905
37,406
38,944
40,475
42,000
43,519
45,031
46,537
.414
28,060
28,539
29,812
31,406
33,032
34,412
35,905
37,406
38,944
40,475
42,000
43,519
45,031
46,537
4.3
Dr i nk i nc
Ex i st i nt
Water
ReguI at i ons
EPA
86
94
95
97
103
108
127
132
137
143
148
153
159
164
169
State Government
71
53
75
82
88
95
102
110
117
125
132
140
147
151
154
Local Government
1 ,992
2,081
2,074
2,099
2,195
2,293
2,352
2,409
2,463
2
514
2
569
2,628
2,690
2,746
2,781
Pr i vate
446
466
465
470
492
514
527
540
552
563
575
589
602
615
623
Total Existing Regs
2,595
2,693
2,709
2,747
2,879
3,010
3,107
3,190
3,268
3
345
3
424
3,510
3,598
3,676
3,726
Federally Mandated
189
191
194
27
27
27
27
27
27
27
27
27
27
24
22
New Regu1 at i ons
Local "Government
75
151
156
292
503
61 7
784
1
029
1
189
1 ,293
1 ,453
1 ,561
1 ,573
Pr i vate
1 7
34
35
65
113
138
1 76
230
266
290
325
350
352
Total New Regs
91
185
191
357
615
755
959
1
260
1
455
1 ,583
1 , 779
1 ,910
1 ,926
Total Drinking Water
2,595
2,693
2,801
2,932
3,070
3,367
3,723
3,945
4,228
4
604
4
879
5,093
5,376
5,586
5,652
Federally Mahdated
189
191
285
212
218
384
642
782
986
1
286
1
482
1 ,609
1 ,806
1 ,935
1 ,947
Total Water Costs
29,009
30,754
31,340
32,745
34,476
36,399
38,134
39,851
41,634
43
548
45
354
47,093
48,895
50,617
52,189
Federally Mandated
26,602
28,251
28,824
30,025
31,624
33,416
35,054
36,687
38,392
40
230
41
957
43,609
45,324
46,965
48,484
November 1990
-------
Costs of Water Pollution Control
4-27
Footnotes to Table 4-3C
Sum of operating costs for year in question, shown on corresponding lines of Table 4-2A, plus amortized capital costs assuming an interest rate of 3 percent and a capital life of 30 years
for water quality and 20 years for drinking water on the accumulated capital investment shown in Tables 4-1 and 4-1A since 1972.
November 1990
-------
4-28 Environmental Investments
Table 4-3D: WATER POLLUTION CONTROL COSTS ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
Water Qua 1 i ty
Po i nt Source
Ex i st i ng Regu1 at i
ons
EPA
432
608
1 ,215
1 ,408
2,032
2,669
3,177
3,700
4,383
4,830
5,247
5,543
5,780
6,088
6,399
Non-EPA Federal
287
375
433
444
503
540
581
564
629
676
687
773
896
State Government
965
958
996
1 ,098
1 ,165
1 ,208
1 ,233
1 ,272
1 ,381
1 ,462
1 ,418
1 ,416
1 ,500
1 ,619
1 , 748
Local Government
3,375
3,853
4,420
4,991
5,433
5,728
5,975
6,317
6,832
7,517
8,174
8,752
9,179
9,666
10,424
Private
4,089
5,241
5,948
6,842
8,109
9,329
10,384
11,501
12,121
12,799
13,166
14,320
15,241
16,199
17,203
Total Point Source
8,861
10,661
12,866
14,714
17,173
19,378
21 ,271
23,330
25,297
27,171
28,635
30,708
32,386
34,345
36,670
Federally Mandated
8,861
10,661
12,866
14,714
17,173
19,378
21 ,271
23,330
25,297
27,171
28,635
30,708
32,386
34,345
36,670
4.1.2 Non-Poi nt Source
Existing Regulations
EPA
Non-EPA Federal
89
102
84
99
116
132
136
127
135
148
156
167
169
180
168
State Government
226
212
193
213
212
186
1 71
190
198
198
220
216
236
233
248
Local Government
226
233
238
245
252
259
265
270
276
283
289
296
302
308
313
Private
32
42
45
54
66
77
84
87
95
103
112
121
127
136
137
Total Water Qual ity
9,434
11
,250
13
,426
15
,326
1 7
,818
20
,031
21
,926
24
,003
26
,001
27
,903
29
,412
31
,506
33
,220
35
,202
37
,535
Federally Mandated
9,434
11
,250
13
,426
15
,326
1 7
,818
20
,031
21
,926
24
,003
26
,001
27
,903
29
,412
31
,506
33
,220
35
,202
37
,535
4.3 Dri nki ng Water
EPA
10
9
11
10
19
51
67
85
91
108
95
94
86
87
86
Non-EPA Federal
State Government
10
21
29
44
57
67
73
73
78
92
Local Government
661
742
851
981
1 ,121
1 ,230
1 ,364
1 ,524
1 ,658
1 ,829
1 ,981
2,087
2,205
2,367
2,555
Pr i vate
148
166
191
220
251
276
306
341
371
410
444
468
494
530
572
Total Drinking Water
819
918
1 ,053
1 ,211
1 ,391
1 ,567
1 , 758
1 ,980
2,164
2,404
2,587
2,722
2,858
3,062
3,305
Federally Mandated
1 72
1 76
181
186
190
195
200
205
Total Water Costs 1C
),253
12,168
14,479
16,537
19,209
21,598
23,683
25,983
28,165
30,307
31 ,999
34,229
36,079
38,264
40,840
Federally Mandated 9
',434
11,250
13,426
15,326
17,818
20,031
21 ,926
24,175
26,178
28,084
29,598
31,697
33,415
35,402
37,740
Footnotes to Table 4-3D
Sum of operating costs for year in question, shown on corresponding lines of Table 4-2, plus amortized capital costs assuming an interest rate of 10 percent and a capital life of 30 years
for water quality and 20 years for drinking water on the accumulated capital investment shown in Table 4-1 since 1972.
November 1990
-------
Costs of Water Pollution Control
Table 4-3E: WATER POLLUTION CONTROL COSTS ANNUALIZED AT 10 PERCENT
4-29
(millions of 1986 dollars)
Rpt
Media
986
1987
1988
1989
1990
1991
1992
1993
1
994
1995
1996
1997
1998
1999
2000
399
6, 705
6,956
7,165
7,417
7,627
7,709
7,792
7
826
7,814
7,802
7,790
7,778
7,765
7,753
896
949
1 ,040
1 ,139
1 ,246
1 ,360
1 ,482
1 ,612
1
750
1 ,896
2,050
2,211
2,381
2,558
2,743
748
1 ,816
1 ,809
1 ,874
1 ,939
2,006
2,074
2,143
2
213
2,284
2,356
2,429
2,504
2,579
2,656
424
11,000
11,502
12,045
12,589
13,135
13,683
14,233
14
784
15,337
15,892
16,448
17,007
17,566
18,128
203
18,557
18,776
19,562
20,331
21,086
21 ,825
22,549
23
257
23,950
24,627
25,290
25,936
26,568
27,183
670
39,026
40,084
41,784
43,523
45,214
46,773
48,329
49
830
51,281
52,727
54,168
55,605
57,037
58,464
670
39,026
40,084
41 , 784
43,523
45,214
46,773
48,329
49
830
51,281
52,727
54,168
55,605
57,037
58,464
2
5
19
34
56
89
89
89
89
89
89
89
89
33
204
374
589
589
589
589
589
589
589
589
589
589
35
209
393
623
645
678
678
678
678
678
678
678
678
362
738
1 ,208
1 , 775
2
432
3,173
3,909
4,640
5,365
6,085
6, 799
670
39,026
40,120
41 ,993
44,278
46,575
48,626
50,782
52
940
55,132
57,314
59,486
61,648
63,799
65,941
670
39,026
40,120
41,993
44,278
46,575
48,626
50,782
52
940
55,132
57,314
59,486
61,648
63,799
65,941
168
185
191
197
203
209
214
220
225
231
236
242
247
252
257
248
226
228
229
231
232
233
235
236
237
238
239
240
240
241
313
320
326
332
339
345
351
357
363
369
376
382
388
394
400
137
147
154
161
168
1 74
181
187
194
200
206
212
218
224
230
865
879
899
920
940
960
980
999
1
018
1 ,037
1 ,056
1 ,074
1 ,092
1,110
1 ,128
865
879
899
920
940
960
980
999
1
018
1 ,037
1 ,056
1 ,074
1 ,092
1,110
1 ,128
865
879
899
920
940
960
980
999
1
018
1 ,037
1 ,056
1 ,074
1 ,092
1,110
1 ,128
865
879
899
920
940
960
980
999
1
018
1 ,037
1 ,056
1 ,074
1 ,092
1,110
1 ,128
535
39,905
41 ,019
42,912
45,218
47,535
49,606
51 ,781
53
958
56,169
58,370
60,560
62,740
64,910
67,069
535
39,905
41 ,019
42,912
45,218
47,535
49,606
51 ,781
53
958
56,169
58,370
60,560
62,740
64,910
67,069
86
94
95
97
103
108
127
132
137
143
148
153
159
164
169
92
75
100
109
119
129
139
149
160
1 71
183
194
203
209
212
555
2,693
2,732
2,801
2,944
3,088
3,164
3,238
3
305
3,369
3,437
3,515
3,596
3,667
3,715
572
603
612
627
659
692
709
725
740
755
770
787
805
821
832
305
3,465
3,538
3,634
3,825
4,016
4,138
4,244
4
342
4,437
4,537
4,650
4,763
4,862
4,928
205
209
214
47
47
47
47
47
47
47
47
47
47
42
38
76
156
164
315
562
724
947
1 ,262
1 ,495
1 ,655
1 ,842
1 ,958
1 ,980
1 7
35
37
71
126
162
212
283
335
371
412
439
444
93
191
201
385
687
886
1
160
1 ,545
1 ,830
2,026
2,254
2,397
2,424
305
3,465
3,632
3,825
4,025
4,401
4,825
5,130
5
502
5,982
6,367
6,676
7,017
7,259
7,351
205
209
307
238
248
432
734
933
1
207
1 ,592
1 ,877
2,073
2,301
2,439
2,461
840
43,370
44,651
46,737
49,243
51,936
54,431
56,911
59
460
62,151
64,737
67,236
69,758
72,168
74,420
740
40,114
41 ,326
43,150
45,466
47,967
50,340
52,714
55
165
57,761
60,247
62,633
65,041
67,349
69,530
Water Qua I i ty
1 Po i nt Source
Existinq Regulations
EPA 6,
Non-EPA Federal
State Government 1 ,
Local Government 10,
Private 17,
Total Existinq Reqs36,
Federally MaRdat§d36,
New RequI at i ons
Local "Government
Pr i vate
Total New
4.1
4.2
4.3
FuI I Implementati on
Total Point Source 36
Federally Mandated 36
2 Non-Poi nt Source
Existinq Requlations
Non-EPA Fediral
State Government
Local Government
Private
Total Existinq Reqs
Federally Mandated
Total Non-Point Source
Federally Mandated
Total Water Qua I ity 37
Federally Mandated 37
Water
ReguI at i ons
Dr i nk i n
Ex i st i n
EPA
State Government
Local Government
Pr i vate
Total Existing Regs
Federally MahdatSd
New ReguI at i ons
Local "Government
Pr i vate
Total New
Total Dr
Federal
Total Water Costs
Federal Iv Mandate
ly Mandated
November 1990
-------
4-30
Environmental Investments
Footnotes to Table 4-3E
Sum of operating costs for year in question, shown on corresponding lines of Table 4-2A, plus amortized capital costs assuming an interest rate of 10 percent and a capital life of 30 years
for water quality and 20 years for drinking water on the accumulated capital investment shown in Tables 4-1 and 4-1A since 1972.
November 1990
-------
5-1
5. COSTS OF LAND POLLUTION CONTROL
Tables 5-1, 5-2, and 5-3 provide data on capital costs, operation and maintenance costs, and total
annualized costs for land pollution control. The estimates are broken down into several categories
which are discussed in the sections indicated below.
5.1. Solid waste;
5.2. Hazardous waste;
5.3. Leaking Underground Storage Tanks;
5.4. Total Resource Conservation and Recovery Act;
5.5. Superfund; and
5.6. Total land pollution control costs.
Table 5-3 provides annualized cost estimates calculated using capital amortization rates of three,
seven, and ten percent, and an assumed capital life of 20 years for solid and hazardous waste
programs, and 30 years for the underground storage tanks and Superfund programs.
The annualized cost estimates discussed below are those calculated using a seven percent rate
for capital amortization. Those calculated using a three percent rate are approximately three to 11
percent lower, and those calculated using a ten percent rate are three to nine percent higher, than the
estimates discussed below.
5.1. SOLID WASTE
EPA expenditures for solid waste have historically been relatively low since activities were
authorized by Subtitle D of the 1976 Resource Conservation and Recovery Act (RCRA). EPA solid
waste expenditures have been rising in recent years, however, as more attention has focused on
expanded regulation of wastes that are not defined as hazardous under Subtitle C of RCRA. State
involvement varies but, for the most part, state programs have developed independently of the
Federal program. State expenditures for program implementation are relatively low. Local
governments have relatively high expenditures due primarily to the provision of services associated
with the collection and disposal of household wastes and, to a lesser extent, for compliance with
standards for solid waste disposal facilities. The private sector also provides solid waste collection
and disposal services.
Total annualized solid waste costs for all sectors, including costs for trash collection and disposal
services, increased from $8.4 billion in 1972 to $16.7 billion in 1987. Future annualized costs are
expected to increase steadily, reaching a projected $22.5 billion by the year 2000. Costs for
Federally-mandated programs accounted for only a small part of historical solid waste costs,
however, from less than $500 million in 1972 and about $1.1 billion in 1987. Future costs for
Federally-mandated programs are expected to remain a small portion of total solid waste costs.
Future annualized costs associated with Federal mandates are expected to increase to a projected
November 1990
-------
5-2
Environmental Investments
$3.6 billion by the year 2000. These costs are driven primarily by expanded Federal regulation of
municipal solid waste disposal facilities pursuant to RCRA Subtitle D.
5.1.1. EPA
The framework for the EPA solid waste program was set forth in Subtitle D of RCRA. Under
the Subtitle D requirements, EPA established minimum technical requirements for solid waste
disposal facilities and created a program under which participating states develop and implement
solid waste management plans. Provisions for Federal financial and technical assistance to state and
local jurisdictions were included to assist in the development of these plans. EPA expenditures are
primarily for these plans, recycling programs, and regulation development. A major problem occurs
in estimating EPA expenditures for solid waste activities because all RCRA costs since 1981 have
been reported in EPA budget documents as hazardous waste costs. A special analysis was used to
separate out EPA expenditures for solid waste activities. This analysis is discussed in Appendix G.
EPA grants for state and local solid waste plans and recycling programs have historically been
relatively modest, reaching a high of $114 million in 1980. EPA expenditures were much lower in
recent years, accounting for only $3 million in 1987. Future EPA expenditures are expected to
increase steadily through the remainder of the century. These costs are associated primarily with
regulation development and implementation.
5.1.2. State Government
Before 1981, state funds for implementation of solid waste activities came primarily from
Federal grants. In subsequent years, state solid waste spending were largely a function of the im-
portance a particular state places on the problem of solid waste disposal. No estimates of these state
costs are available; they are probably very low since solid waste planning and management have
historically been the responsibility of local governments.
5.1.3. Local Government
Local governments have relatively high costs for the services associated with the collection and
disposal of solid waste, and compliance with Federal standards for solid waste disposal facilities.
Local solid waste costs rose steadily from $3.5 billion in 1972 to about $6.3 billion in 1987. Future
costs are expected to rise more dramatically as more stringent Subtitle D requirements for solid
waste disposal facilities come into effect. The new Subtitle D standards are expected to impose a
little more than $1.5 billion in annualized costs to local governments by the year 2000. Total future
costs to localities for solid waste disposal are estimated to increase steadily to approximately $9.5
billion by the year 2000.
November 1990
-------
Costs of Land Pollution Control
5-3
5.1.4. Private
Private solid waste expenditures are also for compliance with standards for solid waste disposal
facilities and for solid waste collection and disposal services. Private solid waste costs increased
steadily from an estimated $4.8 billion in 1972 to $10 billion in 1987. Private costs are projected
to increase slightly in the future, reaching an estimated $11.7 billion by the year 2000.
5.2. HAZARDOUS WASTES
Federal expenditures to administer a national hazardous waste management program and private
costs to comply with EPA and state regulations constitute the majority of all hazardous waste
expenditures under RCRA. Generally, EPA grants drive state expenditures for administration of
permitting and enforcement programs. Local government expenditures are primarily associated with
the siting of hazardous waste treatment facilities.
Annualized costs for all sectors increased dramatically from $182 million in 1981 (the year in
which costs were first recorded) to $1.7 billion in 1987. This trend is expected to continue into the
future, driven in large part by several new and forthcoming regulations, most notably rules
restricting the land disposal of hazardous wastes and mandating corrective action at solid waste
disposal facilities. These new regulations are expected to add an additional $4.6 billion in
annualized private sector costs by the year 2000. Future annual costs for all hazardous waste pro-
grams are projected to increase to $9.2 billion in 1995, and to $12 billion by the year 2000.
5.2.1. EPA and Non-EPA Federal
Much of EPA's spending prior to 1982 was for program development, definition of wastes and
activities to be regulated, development of permitting programs for waste handlers, and the
establishment of procedures to transfer program administration to the states. Implementation began
in 1982 after EPA developed compliance monitoring and enforcement regulations and began techni-
cal reviews of permit applications.
The Hazardous and Solid Waste Amendments of 1984 (HSWA) significantly enhanced EPA's
regulatory activities under RCRA. The Act authorized a program to regulate underground storage
tanks and directed EPA to develop standards to regulate carcinogenic, mutagenic, or other toxic
waste materials that had escaped regulation in earlier years. HSWA also directed EPA to
promulgate corrective action rules mandating the clean-up of operating and closing waste
management facilities. In addition, EPA was to develop regulations to restrict the land disposal of
hazardous waste. EPA costs for these activities increased from $147 million in 1982 to $240 million
in 1987. Future EPA implementation costs are expected to increase slightly overtime.
Non-EPA Federal agencies such as the Departments of Energy and Defense maintain facilities
that are subject to regulations pursuant to RCRA Subtitle C. These agencies currently incur
compliance costs which are expected to increase significantly over the next several years. The only
November 1990
-------
5-4
Environmental Investments
data available on such expenditures are actual budget appropriations data for recent years and esti-
mates of budget needs over the next few years for the Departments of Energy and Defense, which
together account for the large majority of expected Federal expenditures. This data was broken into
capital and O&M cost components using rules of thumb discussed in Appendix H. The resulting
estimates, on an annualized basis, indicate that Federal spending for compliance with RCRA was
$258 million in 1989, and is expected to increase dramatically to over $2 billion by the year 1995,
and to $3.5 billion by the year 2000. These estimates are documented in Appendix H.
5.2.2. State Government
Federal grants support the majority of state hazardous waste expenditures for reporting,
permitting, and enforcement. States can be authorized to implement RCRA only if their programs
are substantially the same as, or more stringent than, the Federal program. State funds are also
derived from dedicated gasoline taxes and fees and used to finance special programs such as
hazardous waste facility planning/siting. While some state programs stand out for their scope and
funding—California's, for example—overall, state administrative expenditures are relatively small
and compliance expenditures are negligible. State costs are not included in this report.
5.2.3. Local Government
Overall, local government spending to implement or comply with RCRA and HSWA hazardous
waste is negligible. Such spending is primarily to support the program planning and siting of
hazardous waste treatment, storage and disposal facilities. Local costs are not included in this
report.
5.2.4. Private
Private expenditures to comply with RCRA hazardous waste regulations increased steadily since
1983, in line with the gradual regulation of an increasing number of waste streams, groups of
hazardous waste generators, and management technologies. On an annualized basis, private costs
increased from $539 million in 1983 to $1.4 billion in 1987. Private expenditures are expected to
increase substantially throughout the 1990s as additional HSWA regulations take effect. Private
costs to comply with new and existing regulations are projected to increase to an estimated $6.8
billion in 1995, and to $8.2 billion by the year 2000.
Of the new and soon-to-be implemented hazardous waste regulations, the most costly to the
private sector is the corrective action rule for solid waste management units (SWMUs). This rule,
which was proposed in 1990, will set technical standards and procedures for conducting corrective
action on groundwater, soil, air and surface water caused by significant releases from SWMUs at
operating, closed, or closing RCRA facilities. The rule will require any facility seeking a RCRA
permit or closing SWMUs under interim status to undergo a Remedial Feasibility Assessment to
determine whether any SWMU is the source of hazardous waste releases. If a leaking SWMU is
identified, the owner/operator of the facility will be required to perform a Remedial Feasibility
November 1990
-------
Costs of Land Pollution Control
5-5
Investigation to assess the extent of the problem and perform the needed corrective action.
Annualized private costs for corrective action are expected to be about $1.3 billion in 1993,
increasing to $1.8 billion in 1997, and to $2.2 billion in the year 2000.
5.3. LEAKING UNDERGROUND STORAGE TANKS
The recently promulgated technical standards and financial responsibility requirements for
petroleum-containing underground storage tanks (UST) are expected to impose significant
compliance costs on the private sector. The rules impose a much lower level of costs on government
entities, however. The technical standards rule, which took effect in 1989, requires the retirement,
upgrade, or replacement within ten years of all tanks that do not meet the new tank standards, as
well as the installation of leak detection monitors. In addition, the rule requires corrective action
for contamination caused by tank releases. The financial responsibility rule requires tank own-
ers/operators to demonstrate the financial capability to take prompt corrective action for
contamination caused by tank releases, and to provide compensation to third parties harmed by any
release. The costs of the financial responsibility rule are minimal compared to costs for the
technical standards rule. Together, the new rules are expected to result in annualized costs of about
$3.2 billion in 1990, increasing to an estimated $4.6 billion by the year 1993. These costs are driven
primarily by corrective action activities over the years 1989-1993. Annualized costs are expected
to drop off to approximately $3 billion over the next few years, and then jump to $3.8 billion in
1998, the compliance deadline year for tank upgrade/replacement.
5.3.1. EPA and Non-EPA Federal
The EPA administers the Leaking Underground Storage Tank Trust Fund (LUST Fund) to assist
states in the development of programs to respond to releases from petroleum-containing under-
ground tanks. Private companies have a large financing role; the LUST Fund is capitalized from
taxes on private companies. (LUST Fund expenditures, however, are treated here as costs to EPA).
EPA expenditures for years 1987 and 1988 are based on actual EPA appropriations from the LUST
Fund. EPA costs for years 1989-2000 are based on projections from 1987 and 1988 levels. EPA
costs were $13 million in 1988, and are expected to increase to $81 million in 1995, and to $130
million by the year 2000.
Non-EPA Federal agencies will incur compliance costs associated with the new UST regula-
tions. These costs are included in the non-EPA Federal costs estimates given for hazardous waste
because they could not be separated out.
5.3.2. Local Governments
Local annualized costs of compliance with the UST rules are expected to be relatively low,
increasing from about $118 million in 1989 to $359 million in 1993. Costs are then expected to
drop to less than $300 million per year through the year 2000.
November 1990
-------
5-6
Environmental Investments
5.3.3. Private
Private expenditures to comply with the new technical standards and financial responsibility
requirements for petroleum-containing underground storage tanks are relatively high. Private
annualized compliance costs are estimated to increase from about $1.1 billion in 1989 to $4.2 billion
by 1993. These costs are driven primarily by large expenditures for corrective action in each of the
years 1989-1993. Annualized costs are expected to fall to about $2.7 billion in subsequent years and
then jump to $3.6 billion in 1998, the compliance deadline for tank upgrade/replacement.
5.4. TOTAL RCRA
Prior to 1981, all expenditures associated with RCRA-related pollution control programs were
for the collection and disposal of solid waste, and for compliance with solid waste facility standards.
These costs ranged from an estimated $8.4 billion in 1972 to $13.6 billion in 1980. Roughly 60
percent of these costs were borne by the private sector, and most of the remainder by local govern-
ments. Expenditures for hazardous waste programs began in the early 1980s, and increased steadily
throughout the decade. By 1988, hazardous waste control costs were $3 billion, while solid waste
costs were about $16.3 billion. In 1990, total RCRA-related costs are expected to be roughly $25
billion, increasing to $32.5 billion in 1995, and to $38 billion by the year 2000. In the 1990s, costs
for hazardous waste programs are expected to rise significantly and account for an increasing share
of all RCRA-related pollution control expenditures.
If only Federally-mandated programs are considered (i.e., excluding solid waste collection and
disposal services), annualized costs will reach an estimated $8.8 billion in 1990, increasing to $15
billion in 1995, and to $19.3 billion by the year 2000. Hazardous waste control costs (including
UST control), are expected to account for over 80 percent of these costs throughout the 1990s. This
large share of costs accounted for by hazardous waste programs is driven primarily by several new
and forthcoming regulations, including the corrective action rule for solid waste management units,
the UST technical standards rule, and several rules restricting the land disposal of hazardous wastes.
5.5. SUPERFUND
EPA has a major role as administrator of the Superfund Program, as authorized under the
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) of 1980 as
amended by the Superfund Amendments and Reauthorization Act (SARA) of 1986. EPA uses funds
from the CERCLA Trust Fund (which is financed primarily by taxes on private industry) for
program administration as well as for site clean-ups. Private sector expenditures for site clean-ups
come from the parties identified as responsible for waste sites. Non-EPA Federal expenditures are
associated with site investigation and clean-up activities primarily by the Department of Energy and
the Department of Defense. The 1986 Amendments to CERCLA gave states an important role in
evaluating and planning remedial actions at Superfund sites, and responsibility for a small portion
of total operation and maintenance costs at sites relying on Trust Fund monies for clean-up. Local
governments generally play a minor role in implementation of the Superfund Program.
November 1990
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Costs of Land Pollution Control
5-7
On an annualized basis, total costs for Superfund implementation and compliance were relatively
modest throughout much of the 1980s, increasing from $15 million in 1981 to $400 million in 1986.
Costs jumped significantly after SARA was enacted, however, reaching an estimated $683 million
in 1987 and $1.3 billion in 1989. Future costs are expected to continue this trend, reaching an
estimated $3.4 billion in 1993, $6 billion in 1997, and over $8 billion by the year 2000.
5.5.1. EPA and Non-EPA Federal
EPA expenditures for administration of the Superfund Program include site investigations,
development of a priority site clean-up list, planning and conducting clean-ups, coordinating a
national program of immediate removals in response to chemical spills and other releases of toxic
substances into the environment, and enforcement actions. Monies for these activities come from
the CERCLA Trust Fund. Prior to 1986, the Fund was financed primarily by taxes on chemical and
petroleum feedstocks. Additional money came from interest earned on the balance in the Fund,
fines and recoveries from responsible parties, and appropriations from general revenues. The 1986
Amendments to CERCLA (SARA) broadened the revenue base. Beginning in 1987, the Fund was
financed by a tax on domestic and imported crude oil, the original tax on petroleum and chemical
feedstocks, and a new tax on manufacturing industries nationwide. All expenditures from the Fund
are treated here as costs to EPA.
EPA Superfund costs, on an annualized basis, increased steadily throughout the 1980s, reaching
an estimated $740 million in 1989. EPA Superfund costs are estimated to continue this trend
throughout the 1990s, increasing from $852 million in 1990 to $1.6 billion in 1995, and to $2.6
billion by the year 2000. (Detailed documentation for CERCLA remediation costs to all affected
sectors is provided in Appendix H.)
Non-EPA Federal agencies—primarily the Departments of Energy and Defense—face
significant responsibilities under CERCLA for clean-up of hazardous waste and nuclear facilities
and sites that are no longer under active operations. Estimates of the annualized costs for these
responsibilities are substantial, increasing from an estimated $107 million in 1987 to $396 million
in 1990. Future non-EPA Federal costs are expected to rise dramatically, reaching $1.7 billion in
1995 and $2.8 billion by the year 2000.
5.5.2. State Governments
States are authorized to impose their own standards on Superfund-financed clean-ups. They
must finance the marginal costs associated with stricter standards, however. States have the right
to participate in preliminary assessments, site inspection, and hazard ranking as well as to review
and comment on clean-up plans and to participate in negotiations for repayment from potentially
responsible private parties. Beyond initial studies and investigations, states are required to match
Federal funds for remedial action with a ten percent contribution (50 percent if the site is owned by
state or local government) and to take responsibility for all future operating and maintenance costs
not involving surface water and groundwater restoration. These requirements are expected to result
November 1990
-------
5-8
Environmental Investments
in annualized costs to states of about $140 million in 1990, $379 million in 1995, and $727 million
by the year 2000.
State involvement in the Superfund Program has varied. Many states with a large number of
uncontrolled sites have established means to raise large sums of money for site clean-up as well as
to develop their own Superfund Programs (e.g., New York, California, New Jersey, and Illinois).
The total costs associated with these state programs are not known, and no estimates for them are
included in this report.
5.5.3. Private
Private expenditures for Superfund remediation activities are an important percentage of the
total. The major private costs associated with Superfund are "Responsible Party" contributions for
site investigation and clean-ups. (Although taxes paid into the CERCLA Trust Fund are largely
costs to the private sector, they are treated as EPA expenditures in this report.)
Private annualized costs in years prior to 1987 were relatively modest, reaching an estimated $57
million in 1986. Future private costs are expected to rise significantly, increasing to $950 in 1995
and to $1.8 billion by the year 2000. In addition to site investigation and clean-up costs, private
companies are spending large sums to contest liability in court. A recent Wall Street Journal article
estimated that private companies are spending millions of dollars to prove that their insurance
companies or other firms are liable for Superfund cleanups.1 These costs are not included in this
report.
5.6. TOTAL LAND POLLUTION CONTROL COSTS
Total annualized costs associated with land pollution control, including costs for solid waste
collection and disposal services, increased steadily from approximately $8.4 billion in 1972 to $19
billion in 1987. Future costs are expected to rise dramatically, due primarily to new and
forthcoming hazardous waste and UST regulations, and increased levels of activity under Superfund.
Land pollution control costs are expected to be $25.6 billion in 1990, increasing to $37 billion by
1995, and to $46 billion by the year 2000. Hazardous waste, UST and Superfund are expected to
account for 35 percent of these costs by 1990, 43 percent by 1995, and by more than 50 percent by
the year 2000.
When only Federally-mandated land pollution control programs are considered, however, (i.e.,
excluding solid waste collection and disposal services), total land pollution control costs are
significantly lower, and hazardous waste costs account for a large majority of the estimated future
costs. Total annualized expenditures for Federally-mandated programs were less than $500 million
1 Amal Kuman Naj, "Can $100 Billion Have 'No Material Effect' on Balance Sheets?", Wall
Street Journal, May 11, 1988.
November 1990
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Costs of Land Pollution Control
5-9
in 1972 and about $910 million in 1980. Since 1980 these costs have increased dramatically,
reaching $3.5 billion in 1987. This trend is projected to continue into the future: costs for Federally-
mandated programs are estimated to reach $10.5 billion in 1990, $19.7 billion in 1995, and over $27
billion by the year 2000. Hazardous waste, UST, and Superfund programs are expected to account
for more than 85 percent of the future annualized costs of Federally-mandated land pollution control
programs.
November 1990
-------
986
105
984
025
115
205
52
169
558
558
672
763
293
209
33
1 78
713
713
385
476
Environmental Investments
Table 5-1: LAND POLLUTION CONTROL CAPITAL COSTS
(millions of 1986 dollars)
1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983
56
53
42
24
34
23
25
29
19
52
613
620
634
652
646
668
702
713
725
731
741
753
733
911
980
847
887
980
963
1 ,126
1 ,157
1 ,140
941
786
345
1 ,530
1 ,670
1 ,552
1 ,575
1 ,671
1
,699
1 ,863
1 ,906
1 ,900
1 , 700
1 ,591
67
77
137
128
119
106
117
115
119
123
103
129
65
65
65
345
1 ,530
1 ,670
1 ,552
1 ,575
1 ,671
1
,699
1 ,863
1 ,906
1 ,900
1 , 700
1 ,656
67
77
137
128
119
106
117
115
119
123
103
193
38
1 71
195
4
19
22
3
76
42
193
293
42
193
293
345
1 ,530
1 ,670
1 ,552
1 ,575
1 ,671
1
,699
1 ,863
1 ,906
1 ,942
1 ,893
1 ,949
67
77
137
128
119
106
117
115
119
165
296
486
November 1990
-------
Costs of Land Pollution Control
5-11
Footnotes to Table 5-1
SOLID WASTE
EPA: Assumed to be zero; EPA solid waste costs are assumed to be operating costs.
Non-EPA Federal: 1974-86 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis,
U.S. Department of Commerce.
Local Government: From Appendix G, Table G-4. See Appendix G for detail.
Private: From Appendix G, Table G-4. See Appendix G for detail.
Existing Federally Mandated: Assumed to be 100 percent of total costs for solid waste regulations.
Total Federally Mandated: Sum of total outlays for solid waste regulations.
HAZARDOUS WASTE
Private: Private manufacturing capital expenditures for pollution abatement are from the 1983-1986 annual editions of "Pollution Abatement Costs and Expenditures" published by
the Bureau of the Census. Figures exclude manufacturing establishments with less than 20 employees. If adjusted to include those establishments with less than 20 employees, it
is estimated that these numbers would be increased by approximately 2 percent or less.
Federally Mandated: Assumed to be 100 percent of total costs for hazardous waste regulations.
Total Federally Mandated: Sum of total outlays for hazardous waste regulations.
SUPERFUND
EPA, State Government, Private: Estimated on the basis of Appendix H.
Federally Mandated: Assumed to be 100 percent of total costs for Superfund regulations.
Total Federally Mandated: Sum of total outlays for Superfund regulations.
November 1990
-------
5-12
Environmental Investments
Table 5-1A: RCRA CAPITAL COSTS
(millions of 1986 dollars)
Rpt
Sec Media 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
5.1 So I i d Waste
Existinq Regulations
EPA
Non-EPA Federal
105
149
1 70
192
213
235
256
277
299
320
342
363
384
406
427
State Government
Local Government
984
1 ,018
930
952
975
997
1 ,020
1 ,042
1 ,065
1 ,088
1,110
1 ,133
1 ,155
1 ,178
1 ,200
Pr i vate
1
,025
1 ,002
883
854
824
795
766
736
707
677
648
618
589
559
530
Total Existing Regs
2
,115
2,169
1 ,983
1 ,998
2,012
2,027
2,041
2,056
2,070
2,085
2,099
2,114
2,128
2,143
2,157
Federally Mandated
205
250
261
282
303
324
345
366
387
408
430
451
472
493
514
New Regu1 at i ons
Local Government
2,105
2,105
877
877
877
877
877
877
877
877
Pr i vate
502
502
502
502
Total New Regs
2,105
2,607
1 ,379
1 ,379
1 ,379
877
877
877
877
877
Total Sol id Waste
2
,115
2,169
1 ,983
1 ,998
2,012
4,132
4,648
3,435
3,449
3,464
2,976
2,991
3,005
3,020
3,034
Federally Mandated
205
250
261
282
303
2,429
2,952
1 , 745
1 , 766
1 , 787
1 ,307
1 ,328
1 ,349
1 ,370
1 ,391
Hazardous Waste
Existing Regulations
EPA
Non-EPA Federal
52
69
75
865
1 ,081
1 ,429
3,040
3,192
3,427
3,114
2,970
2,970
2,970
2,970
2,970
State Government
Local Government
Pr i vate
169
303
359
414
469
525
580
635
691
746
802
857
912
968
1 ,023
Total Existing Regs
221
372
434
1 ,279
1 ,550
1 ,954
3,620
3,827
4,118
3,860
3,772
3,827
3,882
3,938
3,993
Federally Mandated
221
372
434
1 ,279
1 ,550
1 ,954
3,620
3,827
4,118
3,860
3,772
3,827
3,882
3,938
3,993
New Regu1 at i ons
Pr i vate
337
130
1 ,338
1 ,170
1 ,379
391
382
125
411
221
450
904
210
216
222
Total New Regs
337
130
1 ,338
1 ,170
1 ,379
391
382
125
411
221
450
904
210
216
222
Total Hazardous Wast
558
502
1 , 772
2,449
2,929
2,345
4,002
3,952
4,529
4,081
4,222
4,731
4,092
4,154
4,215
Federally Mandated
558
502
1 , 772
2,449
2,929
2,345
4,002
3,952
4,529
4,081
4,222
4,731
4,092
4,154
4,215
LUST
Total Existing Regs
New Regu1 at i ons
Local Government
473
473
514
473
473
23
23
23
23
602
5
5
Pr i vate
4,777
4,777
5,583
4,777
4,777
433
433
433
433
11 ,153
95
95
Total New Regs
5,250
5,250
6,097
5,250
5,250
456
456
456
456
11 ,755
100
100
Total LUST
5,250
5,250
6,097
5,250
5,250
456
456
456
456
11 ,755
100
100
Federally Mandated
5,250
5,250
6,097
5,250
5,250
456
456
456
456
11 ,755
100
100
Total RCRA
2
,672
2,671
3,755
9,697
10,192
12,574
13,901
12,637
8,434
8,001
7,654
8,178
18,853
7,273
7,349
Federally Mandated
763
752
2,033
7,981
8,483
10,871
12,204
10,948
6, 751
6,325
5,984
6,514
17,196
5,623
5,706
November 1990
-------
Costs of Land Pollution Control
5-13
Footnotes to Table 5-1A
SOLID WASTE
EPA: Assumed to be zero; EPA solid waste costs are assumed to be operating costs.
Non-EPA Federal: 1986 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis, U.S.
Department of Commerce. Linear projection of expenditures for 1987-2000 based on historical data for the years 1981-1986.
Existing Local Government: 1986 and 1987 figures from Appendix G, Table G-4. See Appendix G for detail. Linear projection of expenditures for 1988-2000 based on historical
data for the years 1972-1987.
Private: 1986 and 1987 figures from Appendix G, Table G-4. See Appendix G for detail. Linear projection of expenditures for 1988-2000 based on historical data for the years 1972-
1987.
Existing Federally Mandated: Assumed to be 100 percent of total costs for solid waste regulations.
New Local Government: Estimated on the basis of the regulations and sources listed in Appendix A.
T otal F ederally Mandated: Sum of total outlays for total existing solid waste regulations and total new regulations.
HAZARDOUS WASTE
Non-EPA Federal: Estimated cost of Federal facility compliance from Appendix H, Table H-2.
Existing Private: 1986 data for private manufacturing capital expenditure for pollution abatement from the 1986 edition of "Pollution Abatement Costs and Expenditures" published
by the Bureau of the Census. Linear projection of expenditures for 1987-2000 based on historical data for the years 1983-1986. Figures exclude manufacturing establishments with
less than 20 employees. If adjusted to include those establishments with less than 20 employees, it is estimated that these numbers would be increased by approximately 2 percent
or less.
Existing Federally Mandated: Assumed to be 100 percent of total costs for hazardous waste regulations.
New Private: Estimated on the basis of the regulations and sources listed in Appendix A.
Total Federally Mandated: Sum of total costs for existing hazardous waste regulations and new regulations.
November 1990
-------
5-14 Environmental Investments
LUST
Existing Federally Mandated: Assumed to be 100 percent of total costs of regulations associated with LUST.
New Local Government: Estimated on the basis of the regulations and sources listed in Appendix A.
New Private: Estimated on the basis of the regulations and sources listed in Appendix A.
Total Federally Mandated: Sum of total costs of existing LUST regulations and new regulations.
November 1990
-------
Costs of Land Pollution Control
Table 5-1B: CERCLA CAPITAL COSTS
5-15
(millions of 1986 dollars)
Rpt
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
293
760
1 ,077
995
905
1 ,155
1 ,270
1 ,385
1 ,501
1 ,616
1 , 731
1 ,846
1 ,961
2,076
2,191
209
276
300
801
970
1 ,302
2,381
2,756
2,876
2,962
2,797
2,797
2,797
2,797
2,797
33
84
120
111
101
128
141
154
167
180
192
205
218
231
243
1 78
342
401
874
879
983
1 ,103
1 ,205
1 ,325
1 ,429
1 ,546
1 ,654
1 , 770
1 ,874
1 ,992
713
1 ,462
1 ,898
2,781
2,855
3,568
4,895
5,500
5,869
6,187
6,266
6,502
6, 746
6,978
7,223
713
1 ,462
1 ,898
2,781
2,855
3,568
4,895
5,500
5,869
6,187
6,266
6,502
6, 746
6,978
7,223
5.5 Superfund
Existing Regulations
EPA
Non-EPA Federal
State Government
Local Government
Private
Total Existing Regs
Federally Mandated
New ReguI at i ons
Local Government
Pr i vate
Total New Regs
FuI I ImpIementat i on
Total Superfund
Federally Mandated
5.6 Total Land
Federally Mandated
713
713
3,385
1 ,476
1 ,462
1 ,462
4,133
2,214
1 ,898
1 ,898
5,653
3,931
2,781
2,781
12,478
10,762
2,855
2,855
13,047
11,338
3,568
3,568
16,142
14,439
18,796
17,099
5,500
5,500
18,137
16,448
5,869
5,869
14,303
12,620
6,187
6,187
14,188
12,512
6,266
6,266
13,920
12,250
6,502
6,502
14,680
13,016
6, 746
6, 746
25,599
23,942
14,251
12,601
7,223
7,223
14,572
12,929
Footnotes to Table 5-1B
EPA, State Government, Private: Estimated on the basis of Appendix H and the regulations and sources listed in Appendix A.
Non-EPA Federal: Estimated cost of Federal facility compliance from Appendix H, Table H-2.
Existing Federally Mandated: Assumed to be 100 percent of total costs associated with Superfund regulations.
Total Federally Mandated: Sum of total costs associated with existing and new Superfund regulations.
November 1990
-------
5-16
Environmental Investments
Table 5-2: LAND POLLUTION CONTROL OPERATING COSTS
(millions of 1986 dollars)
Rpt
Sec
5.1
Med i a
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
So 1 i d Waste
Existinq Regulations
EPA
70
72
20
24
36
36
39
99
114
19
2
3
Non-EPA Federal
80
109
105
101
94
103
103
152
1 79
181
185
239
202
State Government
Local Government
3,473
3,512
3,592
3,694
3,661
3,783
3,976
4,042
4,106
4,144
4,196
4,270
4,510
4,786
5,038
Pr i vate
4,766
5,042
5,228
5,388
5,862
6,528
6, 769
7,519
7,891
8,042
6,885
6,497
7,135
7,317
8,011
Total Sol id Waste
8,309
8,626
8,919
9,215
9,665
10,448
10,878
11,763
12,213
12,356
11,260
10,947
11 ,830
12,344
13,254
Federally Mandated
482
499
541
587
61 7
653
671
780
816
780
733
719
767
846
857
5.2
5.3
Hazardous Waste
Existinq Regulations
EPA
Non-EPA Federal
State Government
Local Government
Pr i vate
Total Hazardous Waste
Federally Mandated
LUST
Existinq Regulations
EPA
Non-EPA Federal
State Government
Local Government
Pr i vate
Total LUST
Federally Mandated
147
147
147
533
677
677
155
796
202
1 ,306
1 ,306
5.4 Total RCRA
8,309
8,626
8,919
9,215
9,665 10
',448 10
',878
11,763
12,213
12,538
11,407
11,624
12,658
13,301
14,561
Federally Mandated
482
499
541
587
61 7
653
671
780
816
962
880
1 ,396
1 ,596
1 ,804
2,164
5.5 Superfund
Existinq Regulations
EPA
12
36
60
105
100
114
Non-EPA Federal
14
28
37
State Government
4
8
16
20
27
Local Government
Pr i vate
1
5
9
13
Total Superfund
12
40
69
140
157
191
Federally Mandated
12
40
69
140
157
191
5.6 Total Land
8,309
8,626
8,919
9,215
9,665 10
',448 10
',878
11,763
12,213
12,550
11,447
11,693
12,798
13,458
14,752
Federally Mandated
482
499
541
587
61 7
653
671
780
816
974
920
1 ,465
1 , 736
1 ,961
2,355
November 1990
-------
Costs of Land Pollution Control
5-17
Footnotes to Table 5-2
SOLID WASTE
EPA: Data for 1972-1980 from annual Justification of Appropriation Estimates for Committee on Appropriations (data for 1972-1974 are Budget Authority; data for 1975-1986 are
Outlays). Beginning in 1981 all EPA operating expenditures for solid waste management were included in the category "Hazardous Waste". The Office of Solid Waste, however,
provided estimated proportions of hazardous waste which are actually for solid waste for the years 1981-1988. Extrapolations were then made for 1989 and 1990 based on proportions
for 1984-1988. See Appendix G for details.
Non-EPA Federal: 1974-86 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis,
U.S. Department of Commerce.
Local Government: From Appendix G, Table G-4. See Appendix G for detail.
Private: From Appendix G, Table G-4. See Appendix G for detail.
Existing Federally Mandated: Assumed to be 100 percent of total costs associated with existing regulations for solid waste pollution control.
Total Federally Mandated: Sum of total costs associated with regulations for solid waste pollution control.
HAZARDOUS WASTE
EPA: Data for 1972-1980 from annual Justification of Appropriation Estimates for Committee on Appropriations (data for 1972-1974 are Budget Authority; data for 1975-1986 are
Outlays). Beginning in 1981 all EPA operating expenditures for solid waste management were included in the category "Hazardous Waste". The Office of Solid Waste, however,
provided estimated proportions of hazardous waste which are actually for solid waste for the years 1981-1988. Extrapolations were then made for 1989 and 1990 based on proportions
for 1984-1988. See Appendix G for details.
Private: Private manufacturing capital expenditures for pollution abatement are from the 1983-1986 annual editions of "Pollution Abatement Costs and Expenditures" published by
the Bureau of the Census. Figures exclude manufacturing establishments with less than 20 employees. If adjusted to include those establishments with less than 20 employees, it
is estimated that these numbers would be increased by approximately 2 percent or less.
Existing Federally Mandated: Assumed to be 100 percent of total costs associated with existing regulations for hazardous waste pollution control.
Total Federally Mandated: Sum of total costs associated with regulations for hazardous waste pollution control.
November 1990
-------
5-18 Environmental Investments
SUPERFUND
EPA, State Government, Private: Estimated on the basis of Appendix H.
Existing Federally Mandated: Assumed to be 100 percent of total costs of existing regulations associated with Superfund.
Total Federally Mandated: Sum of total costs of regulations associated with Superfund.
November 1990
-------
Costs of Land Pollution Control
Table 5-2A: RCRA OPERATING COSTS
(millions of 1986 dollars)
5-19
Rpt
Med i a
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
3
3
6
9
12
14
16
18
20
22
24
26
28
30
32
202
233
245
258
270
283
295
307
320
332
345
357
369
382
394
.038
5,194
5,036
5,144
5,251
5,358
5,466
5,573
5,680
5,788
5,895
6,003
6,110
6,217
6,325
.011
8,605
8,175
8,327
8,479
8,630
8,782
8,934
9,086
9,237
9,389
9,541
9,692
9,844
9,996
.254
14,035
13,463
13,738
14,012
14,286
14,559
14,832
15,106
15,379
15,653
15,926
16,200
16,473
16,747
857
926
912
941
969
996
1 ,023
1 ,051
1 ,078
1 ,105
1 ,133
1 ,160
1 ,188
1 ,215
1 ,242
196
196
318
439
439
439
439
439
439
439
77
77
77
77
77
77
77
77
77
196
273
395
516
516
516
516
516
516
516
.254
14,035
13,463
13,738
14,012
14,482
14,832
15,227
15,622
15,895
16,169
16,442
16,716
16,989
17,263
857
926
912
941
969
1 ,192
1 ,296
1 ,446
1 ,594
1 ,621
1 ,649
1 ,676
1 , 704
1 , 731
1 , 758
202
239
231
214
210
236
245
254
263
272
281
290
299
308
31 7
9
13
14
153
191
252
536
563
605
550
524
524
524
524
524
928
1 ,060
1 ,190
1 ,321
1 ,451
1 ,582
1 ,712
1 ,842
1 ,973
2,103
2,234
2,364
2,495
2,625
2,755
.139
1 ,312
1 ,435
1 ,688
1 ,853
2,070
2,493
2,660
2,841
2,926
3,039
3,178
3,318
3,457
3,597
.139
1 ,312
1 ,435
1 ,688
1 ,853
2,070
2,493
2,660
2,841
2,926
3,039
3,178
3,318
3,457
3,597
3
3
3
3
3
3
3
3
3
3
3
3
3
3
9
9
9
9
9
9
9
5
5
5
5
5
5
5
167
250
1 ,311
1 ,343
1 ,711
2,698
3,285
3,405
3,541
3,665
3,339
3,490
3,614
3,738
3,825
167
262
1 ,323
1 ,355
1 , 723
2,710
3,297
3,417
3,549
3,673
3,347
3,498
3,622
3,746
3,833
.306
1 ,574
2,758
3,043
3,576
4,780
5,790
6,077
6,390
6,599
6,386
6,676
6,940
7,203
7,430
.306
1 ,574
2,758
3,043
3,576
4,780
5,790
6,077
6,390
6,599
6,386
6,676
6,940
7,203
7,430
5.1 So I i d Waste
Existinq Regulations
EPA 3 3
Non-EPA Federal
Local Government
Pr i vate
Total Existinq Regs
Federally Mahdat^d
New ReguI at i ons
Local Government
Pr i vate
Total New Regs
Total Sol id Waste
Federally Mandated
5.2 Hazardous Waste
Existing Regulations
EPA 3 3
Non-EPA Federal
State Government
Local Government
Pr i vate
Total Existing Regs
Federally Mahdat^d
New ReguI at i ons
EPA 3
State Government
Pr i vate
Total New Regs
Total He
FederaI
ly Mandated
5.3 LUST
Existing Regulations
EPA 3 3
Total Existing Regs
Federally MahdatSd
New ReguI at i ons
Local Government
Pr i vate
Total New Regs
Total LUST
Federally Mandated
5.4 Total RCRA 14,561
Federally Mandated 2,164
13
13
13
13
13
30
30
30
30
30
30
41
41
41
52
52
52
62
62
62
72
72
72
91
91
91
101
101
101
111
111
111
120
120
120
130
130
130
15,610
2,501
16,234
3,684
17,
80
156
156
165
165
57
30
30
30
30
14
14
778
2,182
2,182
2,199
2,200
937
551
551
552
553
253
253
858
2,338
2,338
2,364
2,365
994
581
581
582
583
267
267
888
2,368
2,379
2,416
2,427
1 ,066
662
672
683
694
387
397
888
2,368
2,379
2,416
2,427
1 ,066
662
672
683
694
387
397
668
19,956
21,640
23,038
23,731
23,077
23,156
23,227
23,801
24,349
24,580
25,090
871
6,913
8,351
9,503
9,949
9,050
8,882
8,707
9,035
9,337
9,321
9,585
November 1990
-------
5-20
Environmental Investments
Footnotes to Table 5-2A
SOLID WASTE
EPA: Data from annual Justification of Appropriation Estimates for Committee on Appropriations (data for 1986-1988 are Outlays; amount for 1989 is Current Estimate; amount
for 1990 is Request). Beginning in 1981 all EPA operating expenditures for solid waste management were included in the category "Hazardous Waste". The Office of Solid Waste,
however, provided estimated proportions of hazardous waste which are actually for solid waste for the years 1981 -1988. Extrapolations were then made for 1989 and 1990 based
on proportions for 1984-1988. See Appendix G for details. Linear projection of expenditures for 1991-2000 based on derived data for the years 1984-1990.
Non-EPA Federal: 1986 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis, U.S.
Department of Commerce. Linear projection of expenditures for 1987-2000 based on historical data for the years 1981-1986.
Existing Local Government: 1986 and 1987 figures from Appendix G, Table G-4. See Appendix G for detail. Linear projection of expenditures for 1988-2000 based on historical
data for the years 1972-1987.
Private: 1986 and 1987 figures from Appendix G, Table G-4. See Appendix G for detail. Linear projection of expenditures for 1988-2000 based on historical data for the years 1972-
1987.
Existing Federally Mandated: Assumed to be 100 percent of total costs associated with existing regulations for solid waste pollution control.
New Local Government: Estimated on the basis of the regulations and sources listed in Appendix A.
Total Federally Mandated: Sum of total costs associated with existing and new regulations for solid waste pollution control.
HAZARDOUS WASTE
EPA: Data from annual Justification of Appropriation Estimates for Committee on Appropriations (data for 1986-1988 are Outlays; amount for 1989 is Current Estimate; amount
for 1990 is Request). Beginning in 1981 all EPA operating expenditures for solid waste management were included in the category "Hazardous Waste". The Office of Solid Waste,
however, provided estimated proportions of hazardous waste which are actually for solid waste for the years 1981 -1988. Extrapolations were then made for 1989 and 1990 based
on proportions for 1984-1988. See Appendix G for details. Linear projection of expenditures for 1991-2000 based on derived data for the years 1981-1990.
Non-EPA Federal: Estimated cost of Federal facility compliance from Appendix H, Table H-2.
Existing Private: 1986 private manufacturing capital expenditure for pollution abatement from the 1986 edition of "Pollution Abatement Costs and Expenditures" published by the
Bureau of the Census. Linear projection of expenditures for 1987-2000 based on historical data for the years 1983-1986. Figures exclude manufacturing establishments with less
than 20 employees. If adjusted to include those establishments with less than 20 employees, it is estimated that these numbers would be increased by approximately 2 percent or less.
November 1990
-------
Costs of Land Pollution Control 5-21
Existing Federally Mandated: Assumed to be 100 percent of total costs associated with regulations for hazardous waste pollution control.
New State Government: Estimated on the basis of the regulations and sources listed in Appendix A.
New Private: Estimated on the basis of the regulations and sources listed in Appendix A.
Total Federally Mandated: Sum of total costs associated with existing and new regulations for hazardous waste pollution control.
LUST
EPA: Data for 1987-1990 from annual Justification of Appropriation Estimates for Committee on Appropriations (data for 1986-1988 are Outlays; amount for 1989 is Current
Estimate; amount for 1990 is Request). Linear projection of expenditures for 1991-2000 based on data for the years 1987-1990.
Existing Federally Mandated: Assumed to be 100 percent of total costs associated with existing regulations for LUST.
New Non-EPA Federal: 1974-86 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic
Analysis, U.S. Department of Commerce.
New Local Government: Estimated on the basis of the regulations and sources listed in Appendix A.
New Private: Estimated on the basis of the regulations and sources listed in Appendix A.
Total Federally Mandated: Sum of total costs associated with existing and new regulations for LUST.
November 1990
-------
5-22
Environmental Investments
Table 5-2B: CERCLA OPERATING COSTS
(millions of 1986 dollars)
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Superfund
Existing Regulations
EPA
114
255
320
392
431
450
499
548
596
645
693
742
791
839
888
Non-EPA Federal
37
49
53
131
1 71
230
421
487
506
523
494
494
494
494
494
State Government
27
28
44
67
93
123
154
189
228
270
315
364
416
471
530
Local Government
Private
13
21
30
51
72
96
123
152
184
218
255
295
337
382
430
Total Existing Regs
191
353
447
641
767
899
1 ,197
1 ,376
1 ,514
1 ,656
1 , 757
1 ,895
2,038
2,186
2,342
Federally Mandated
191
353
447
641
767
899
1 ,197
1 ,376
1 ,514
1 ,656
1 , 757
1 ,895
2,038
2,186
2,342
New Regu1 at i ons
Local Government
Pr i vate
Total New Regs
Fu11 1mp1ementat i on
Total Superfund
191
353
447
641
767
899
1 ,197
1 ,376
1 ,514
1 ,656
1 , 757
1 ,895
2,038
2,186
2,342
Federally Mandated
191
353
447
641
767
899
1 ,197
1 ,376
1 ,514
1 ,656
1 , 757
1 ,895
2,038
2,186
2,342
5.6 Total Land 14,752 15,963 16,681 18,309 20,723 22,539 24,235 25,107 24,591 24,812 24,984 25,696 26,387 26,766 27,432
Federal ly Mandated 2,355 2,854 4,131 5,512 7,680 9,250 10,700 11,325 10,564 10,538 10,464 10,930 11,375 11,507 11,927
Footnotes to Table 5-2B
EPA, State Government, Private: Estimated on the basis of Appendix H and the regulations and sources listed in Appendix A.
Non-EPA Federal: Estimated cost of Federal facility compliance from Appendix H, Table H-2.
Existing Federally Mandated: Assumed to be 100 percent of total costs associated existing Superfund regulations.
Total Federally Mandated: Sum of total costs associated with existing and new Superfund regulations.
November 1990
-------
Costs of Land Pollution Control
Table 5-3: LAND POLLUTION CONTROL COSTS ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
5-23
Rpt
Sec
Med i a
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
5.1
So 1 i d Waste
Existinq Requlations
EPA
70
72
20
24
36
36
39
99
114
19
2
3
Non-EPA Federal
85
119
119
118
114
125
127
1 79
208
215
230
295
268
State Government
Local Government
3,530
3,629
3,768
3,931
3,960
4,144
4,404
4,538
4,669
4,777
4,899
5,043
5,355
5,711
6,056
Pr i vate
4,835
5,197
5,475
5,716
6,274
7,032
7,363
8,220
8,701
8,959
7,892
7,577
8,307
8,579
9,369
Total Sol id Waste
8,436
8,898
9,348
9,790
10,389
11,330
11,920
12,981
13,612
13,934
12,998
12,835
13,892
14,587
15,697
Federally Mandated
488
513
567
626
667
713
742
861
909
885
847
846
913
1 ,012
1 ,043
5.2
Hazardous Waste
Existinq Requlations
EPA
182
147
144
146
155
202
Non-EPA Federal
6
11
19
Private
539
693
843
990
Total Hazardous Waste
182
147
683
845
1 ,009
1 ,410
Federally Mandated
182
147
683
845
1 ,009
1 ,410
5.3
LUST
Total LUST
Federally Mandated
5.4
Total RCRA
8,436
8,898
9,348
9,790
10,389
11,330
11,920
12,981
13,612
14,116
13,145
13,518
14,737
15,596
17,107
Federally Mandated
488
513
567
626
667
713
742
861
909
1 ,067
994
1 ,529
1 , 758
2,021
2,453
5.5
Superfund
Existinq Requlations
EPA
15
53
93
169
196
233
Non-EPA Federal
20
47
73
State Government
0
6
12
23
31
40
Local Government
Pr i vate
0
7
23
39
57
Total Superfund
15
59
112
235
312
404
Federally Mandated
15
59
112
235
312
404
5.6
Total Land
8,436
8,898
9,348
9,790
10,389
11,330
11,920
12,981
13,612
14,131
13,204
13,630
14,972
15,908
17,511
Federally Mandated
488
513
567
626
667
713
742
861
909
1 ,082
1 ,053
1 ,640
1 ,993
2,333
2,856
Footnotes to Table 5-3
Sum of operating costs for year in question, shown on corresponding lines of Table 5-2, plus amortized capital costs assuming an interest rate of 7 percent and a capital life of 20 years
for solid and hazardous waste and 30 years for LUST and Superfund on the accumulated capital investment shown in Table 5-1 since 1972.
November 1990
-------
5-24
Environmental Investments
Table 5-3A: RCRA COSTS ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Med i a
1990 1991 1992 1993 1
1995 1
1 997 1
1999 2000
5.1 So I i d Waste
Existinq Regulations
EPA 3 3
Non-EPA Federal
Local Government
Pr i vate
Total Existinq Regs
Federally Mahdat^d
New ReguI at i ons
Local Government
Pr i vate
Total New Regs
Total Sol id Waste 15
Federally Mandated 1
5.2 Hazardous Waste
Existing Regulations
EPA 3 3
Non-EPA Federal
State Government
Local Government
Pr i vate
Total Existing Regs 1
Federally Mahdat^d 1
3
268
6,056
9,369
15,697
1 ,043
697
043
3
313
6,308
10,058
16,683
1 ,135
1
342
6,238
9,712
6,298
1 ,146
1
1
1 ,135 1,1
372
6,435
9,944
16,761
1 ,201
16,761
1 ,201
202
19
212
212
239
30
1 ,151
1 ,419
1 ,419
231
1 ,315
1 ,583
1 ,583
214
258
1 ,485
1 ,957
1 ,957
12
405
6,635
10,173
17,226
1 ,258
17,226
1 ,258
210
1 ,659
2,268
2,268
14
439
6,836
10,400
17,690
1 ,316
395
395
8,085
1 , 710
236
594
2,670
2,670
16
476
6,982
10,555
18,029
1 ,369
593
124
718
18,747
2,1
245
1 ,165
2,024
3,435
3,435
18
515
7,129
10,690
18,352
1 ,423
1 72
970
19,322
2,393
254
1 ,493
2,215
3,963
3,963
20
550
7,277
10,816
18,663
1 ,474
1 ,002
219
1 ,221
1
2,
263
1 ,
2,411
4,533
4,533
22
588
7,426
10,952
18,987
1 ,528
1 ,085
267
1 ,351
20,338
2,880
272
2,098
2,611
24
628
7,577
11,081
19,310
1 ,585
1 ,168
267
1 ,434
20,744
3,019
281
2,352
2,817
5,451
5,451
26
673
7,728
11 ,198
19,625
1 ,645
1 ,250
267
1 ,517
21 ,142
3,162
290
2,633
3,029
5,952
5,952
718
7,879
11 ,315
19,940
1 , 706
1 ,333
267
1 ,600
21,539
3,305
299
2,913
3,245
6,457
6,457
30
767
8,030
11 ,413
20,240
1 , 769
1 ,416
267
1 ,682
21 ,922
3,451
3,193
3,467
32
81 7
8,182
11,505
20,537
1 ,834
267
1 , 765
22,302
3,599
31 7
3,474
3,
7,
7,
EPA 3
3
3
3
3
3
3
3
3
3
3
3
3
3
State Government
9
9
9
9
9
9
9
5
5
5
5
5
5
Pr i vate
199
294
1 ,481
1 ,624
2,122
3,146
3,769
3,901
4,076
4,220
3,937
4,173
4,317
4,461
4
Total New Regs
199
306
1 ,493
1 ,636
2,134
3,158
3,781
3,913
4,084
4,228
3,945
4,181
4,325
4,469
4.
Total Hazardous Waste
1 ,410
1 , 725
3,077
3,593
4,402
5,827
7,216
7,875
8,616
9,210
9,396
10,133
10,782
11,438
12,
Federally Mandated
1 ,410
1 , 725
3,077
3,593
4,402
5,827
7,216
7,875
8,616
9,210
9,396
10,133
10,782
11 ,438
12.
5.3 LUST
Existing Regulations
EPA 3 3
1
13
30
30
41
52
62
72
81
91
101
111
120
Total Existing Regs
1
13
30
30
41
52
62
72
81
91
101
111
120
Federally MahdatSd
1
13
30
30
41
52
62
72
81
91
101
111
120
New Regu1 at i ons
Non-EPA Federal
Local Government
118
232
274
321
359
253
228
229
231
280
264
Pr i vate
1 ,163
2,952
3,402
3,804
4,190
2,962
2,611
2,645
2,681
3,581
3,289
3,
Total New Regs
1 ,281
3,184
3,675
4,125
4,549
3,214
2,838
2,875
2,913
3,861
3,553
3.
Total LUST
1
13
1 ,311
3,215
3,716
4,177
4,611
3,286
2,920
2,966
3,014
3,972
3,673
3
Federally Mandated
1
13
1 ,311
3,215
3,716
4,177
4,611
3,286
2,920
2,966
3,014
3,972
3,673
3.
5.4 Total RCRA
17,107
18,409
19,388
21,664
24,842
27,629
30,139
31,808
31 , 787
32,468
33,106
34,289
36,293
37,033
38,
Federally Mandated
2,453
2,861
4,236
6,104
8,874
11,254
13,479
14,879
14,598
15,009
15,381
16,308
18,059
18,563
19.
130
130
130
265
November 1990
-------
Costs of Land Pollution Control
5-25
Footnotes to Table 5-3A
Sum of operating costs for year in question, shown on corresponding lines of Table 5-2A, plus amortized capital costs assuming an interest rate of 7 percent and a capital life of 20 years
for solid and hazardous waste and 30 years for LUST on the accumulated capital investment shown in Tables 5-1 and 5-1A since 1972.
November 1990
-------
5-26 Environmental Investments
Table 5-3B: CERCLA COSTS ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Sec Media 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
5.5 Superfund
Existing Regulations
EPA
233
436
587
740
852
964
1,115
1 ,276
1 ,445
1 ,624
1 ,811
2,009
2,216
2,431
2,657
Non-EPA Federal
73
107
135
278
396
560
943
1 ,231
1 ,482
1 , 737
1 ,934
2,159
2,384
2,610
2,835
State Government
40
48
74
106
140
180
222
270
322
379
439
505
574
648
727
Local Government
Private
57
93
134
225
31 7
420
536
662
801
950
1,112
1 ,285
1 ,470
1 ,666
1 ,874
Fotal Existing Regs
404
683
930
1 ,348
1 , 704
2,124
2,816
3,439
4,050
4,690
5,296
5,958
6,645
7,355
8,093
Federally Mandated
404
683
930
1 ,348
1 , 704
2,124
2,816
3,439
4,050
4,690
5,296
5,958
6,645
7,355
8,093
New ReguI at i ons
Local Government
Pr i vate
Total New Regs
FuI I ImpIementat i on
Total Superfund
Federally Mandated
5.6 Total Land
Federally Mandated
404 683 930
404 683 930
1 7,511 19,092 20,318
2,856 3,545 5,166
1,348 1,704 2,124
1,348 1,704 2,124
23,013 26,547 29,753
7,452 10,579 13,378
2,816 3,439 4,050
2,816 3,439 4,050
32,956 35,247 35,836
16,295 18,318 18,648
4,690 5,296 5,958
4,690 5,296 5,958
37,158 38,402 40,247
19,699 20,677 22,266
6,645 7,355 8,093
6,645 7,355 8,093
42,938 44,388 46,148
24,704 25,918 27,445
Footnotes to Table 5-3B
Sum of the operating costs for the year in question, shown on corresponding lines of Table 5-2B, plus amortized capital costs assuming an interest rate of seven percent and a capital life
of 30 years on the accumulated capital investment shown in Tables 5-1 and 5-1B since 1972.
November 1990
-------
Costs of Land Pollution Control 5-27
Table 5-3C: LAND POLLUTION CONTROL COSTS ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Sec Media 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986
5.1 So I i d Waste
Existing Regulations
EPA
70
72
20
24
36
36
39
99
114
19
2
3
Non-EPA Federal
84
116
115
113
108
119
120
1 71
200
205
21 7
279
249
State Government
Local Government
3,514
3,595
3,717
3,863
3,874
4,040
4,280
4,395
4,507
4,595
4,697
4,820
5,111
5,444
5,763
Pr i vate
4,815
5,153
5,404
5,621
6,155
6,887
7,192
8,018
8,468
8,695
7,602
7,266
7,970
8,215
8,978
Total Sol id Waste
8,399
8,820
9,225
9,625
10,181
11,076
11,620
12,630
13,209
13,480
12,498
12,292
13,298
13,941
14,994
Federally Mandated
486
509
559
615
653
695
721
838
883
855
814
809
871
964
989
5.2
Hazardous Waste
Existing Regulations
EPA
182
147
144
146
155
202
Non-EPA Federal
5
10
16
State Government
Local Government
Pr i vate
537
689
829
972
Total Hazardous Waste
182
147
681
840
994
1 ,380
Federally Mandated
182
147
681
840
994
1 ,380
5.3
LUST
Existing Regulations
EPA
Non-EPA Federal
State Government
Local Government
Pr i vate
Total LUST
Federally Mandated
5.4
Total RCRA
8,399
8,820
9,225
9,625
10,181
11,076
11,620
12,630
13,209
13,662
12,645
12,973
14,139
14,935
16,374
Federally Mandated
486
509
559
615
653
695
721
838
883
1 ,037
961
1 ,491
1 ,712
1 ,958
2,370
5.5
Superfund
Existing Regulations
EPA
14
47
81
145
161
190
Non-EPA Federal
18
40
60
State Government
0
5
10
20
27
35
Local Government
Pr i vate
0
5
16
28
41
Total Superfund
14
52
96
200
255
326
Federally Mandated
14
52
96
200
255
326
5.6
Total Land
8,399
8,820
9,225
9,625
10,181
11,076
11,620
12,630
13,209
13,676
12,697
13,069
14,339
15,190
16,700
Federally Mandated
486
509
559
615
653
695
721
838
883
1 ,051
1 ,013
1 ,586
1 ,912
2,214
2,695
November 1990
-------
5-28
Environmental Investments
Footnotes to Table 5-3C
Sum of operating costs for year in question, shown on conesponding lines of Table 5-2, plus amortized capital costs assuming an interest rate of three percent and a capital life of 20 years
for solid and hazardous waste and 30 years for LUST and Superfund on the accumulated capital investment shown in Table 5-1 since 1972.
November 1990
-------
Costs of Land Pollution Control
Table 5-3D: RCRA COSTS ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
5-29
Rpt
Med i a
1
1991
1992
1993
1995
1997
2000
5.1
So I i d Waste
Existinq Regulations
EPA 3
Non-EPA Federal 249
Local Government 5,763
Private 8,978
Total Existing Regs 14,994
Federal ly Maridatid 989
New ReguI at i ons
Local Government
Pr i vate
Total New Regs
3 6
290 314
5,987 5,892
9,640 9,269
15,920 15,482
1,075 1,079
339
6,063
9,478
15,890
1 ,126
12
366
6,236
9,685
16,300
1 ,175
14
394
6,411
9,891
16,710
1 ,224
337
337
16
424
6,546
10,045
17,030
1 ,269
479
111
590
18
455
6,681
10,185
17,338
1 ,316
Total Sol id Waste
14,994 15,920 15,
15,890 16,300 1 7,'
17,619 18,143
20
10,318
17,639
1 ,360
1 78
1 ,018
18,657
22
514
6,954
10,458
17,948
1 ,407
212
1,111
24
547
7,093
10,594
18,257
1 ,455
212
1 ,170
26
582
7,232
10, 721
18,560
1 ,505
1 ,01 7
212
1 ,229
618
7,369
1 ,557
1 ,076
212
1 ,288
30
656
7,508
10,961
19,155
1 ,609
1 ,135
212
1 ,347
19,059 19,427 1
5.2
5.3
32
695
7,647
11,071
19,446
1 ,663
1 ,194
212
1 ,406
20,150 20,502 20,851
Federally Mandated
989
1 ,075
1 ,079
1 ,126
1 ,175
1 ,561
1 ,859
2,120
2,378
2,517
2,625
2,734
2,844
2,956
3,069
Hazardous Waste
Existing Regulations
EPA 3 3
202
239
231
214
210
236
245
254
263
272
281
290
299
308
31 7
Non-EPA Federal
16
25
31
228
339
496
984
1 ,226
1 ,498
1 ,652
1 ,826
2,025
2,225
2,425
2,624
State Government
Local Government
Pr i vate
972
1 ,125
1 ,279
1 ,437
1 ,599
1 , 765
1 ,934
2,108
2,285
2,465
2,649
2,837
3,029
3,225
3,424
Total Existing Regs
1 ,191
1 ,388
1 ,541
1 ,880
2,148
2,497
3,164
3,588
4,046
4,390
4,756
5,153
5,553
5,958
6,365
Federally Mahdat^d
1 ,191
1 ,388
1 ,541
1 ,880
2,148
2,497
3,164
3,588
4,046
4,390
4,756
5,153
5,553
5,958
6,365
New Regu1 at i ons
EPA
3
3
3
3
3
3
3
3
3
3
3
3
3
3
State Government
9
9
9
9
9
9
9
5
5
5
5
5
5
5
Pr i vate
190
281
1 ,432
1 ,543
2,004
3,017
3,630
3,758
3,922
4,060
3,765
3,977
4,115
4,253
4,355
Total New Regs
190
293
1 ,444
1 ,555
2,016
3,029
3,642
3,770
3,930
4,068
3,773
3,985
4,123
4,261
4,363
Total Hazardous Waste
1 ,380
1 ,681
2,985
3,435
4,164
5,526
6,805
7,358
7,975
8,458
8,529
9,138
9,676
10,219
10,728
Federally Mandated
1 ,380
1 ,681
2,985
3,435
4,164
5,526
6,805
7,358
7,975
8,458
8,529
9,138
9,676
10,219
10,728
LUST
Existing Regulations
EPA
1
13
30
30
41
52
62
72
81
91
101
111
120
130
Total Existing Regs
1
13
30
30
41
52
62
72
81
91
101
111
120
130
Federally Mandated
1
13
30
30
41
52
62
72
81
91
101
111
120
130
New Regu1 at i ons
Local Government
104
204
230
264
288
181
155
156
157
188
1 72
1 73
Pr i vate
1 ,022
2,669
2,954
3,215
3,460
2,219
1 ,855
1 ,877
1 ,900
2,470
2,175
2,180
Total New Regs
1 ,126
2,874
3,185
3,479
3,747
2,400
2,010
2,033
2,058
2,658
2,347
2,352
Total LUST
1
13
1 ,155
2,904
3,226
3,531
3,809
2,471
2,091
2,124
2,158
2,769
2,468
2,483
Federally Mandated
1
13
1 ,155
2,904
3,226
3,531
3,809
2,471
2,091
2,124
2,158
2,769
2,468
2,483
Total RCRA 1
6,374
17,603
18,480
20,480
23,369
25,799
27,956
29,310
29,104
29,609
30,080
31,085
32,595
33,188
34,062
Federally Mandated
2,370
2,757
4,077
5,716
8,243
10,313
12,195
13,287
12,825
13,067
13,278
14,030
15,289
15,642
16,280
November 1990
-------
5-30
Environmental Investments
Footnotes to Table 5-3D
Sum of operating costs for year in question, shown on corresponding lines of Table 5-2A, plus amortized capital costs assuming an interest rate of 3 percent and a capital life of 20 years
for solid and hazardous waste and 30 years for LUST on the accumulated capital investment shown in Tables 5-1 and 5-1A since 1972.
November 1990
-------
Costs of Land Pollution Control
Table 5-3E: CERCLA COSTS ANNUALIZED AT 3 PERCENT
5-31
(millions of 1986 dollars)
Rpt
Media
1991 1992 1993 1
1995 1
1 997 1
1999 2000
5.5 Superfund
Existing Regulations
EPA
Non-EPA Federal
State Government
Local Government
New ReguI at i ons
Local Government
Pr i vate
Total New Regs
FuI I ImpIementat i on
Total Superfund
Federally Mandated
5.6 Total Land
Federally Mandated
35
369
86
41
105
63
612
224
91
697
313
123
775
439
159
1
751
197
1 ,133
1 ,124
240
1 ,265
1 ,292
339
1 ,401
1 ,405
394
1 ,544
1 ,548
453
1 ,693
1 ,691
516
1 ,
1 ,
583
326
326
16,700
2,695
562
562
18,165
3,320
753
753
19,233 21,569
1 ,361
1 ,361
24,729
9,603
1 ,675
1 ,675
27,474
11,987
2,222
2,222
30,178
14,417
2,682
2,682
31 ,992
15,969
3,119
3,119
32,223
15,944
3,577
3,577
33,186
16,644
3,998
3,998
34,078
17,276
4,467
4,467
35,552
18,497
4,955
4,955
37,550
20,244
5,459
5,459
38,647
21 ,101
2,008
1 ,976
654
Private
41
66
96
161
227
301
385
475
575
682
797
922
1 ,054
1 ,195
1 ,344
Total Existing Regs
326
562
753
1 ,089
1 ,361
1 ,675
2,222
2,682
3,119
3,577
3,998
4,467
4,955
5,459
5,983
Federally Mandated
326
562
753
1 ,089
1 ,361
1 ,675
2,222
2,682
3,119
3,577
3,998
4,467
4,955
5,459
5,983
5,983
5,983
40,045
22,263
Footnotes to Table 5-3E
Sum of the operating costs for year in question, shown on corresponding lines of Table 5-2B, plus amortized capital costs assuming an interest rate of three percent and a capital life of
30 years on accumulated capital investment shown in Tables 5-1 and 5-1B since 1972.
November 1990
-------
5-32 Environmental Investments
Table 5-3F: LAND POLLUTION CONTROL COSTS ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Sec Med i a
5.1 So I i d Waste
Existinq Regulations
EPA
Non-EPA Federal
State Government
Local Government
Pr i vate
Total Sol id Waste
Federally Mandated
5.2 Hazardous Waste
Existing Regulations
EPA 182 147 144 146 155 202
Non-EPA Federal 6 12 21
State Government
Local Government
Private 540 697 854 1,005
Total Hazardous Waste 182 147 684 849 1,022 1,436
Federally Mandated 182 147 684 849 1,022 1,436
5.3 LUST
Existing Regulations
EPA
Non-EPA Federal
State Government
Local Government
Pr i vate
Total LUST
Federally Mandated
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
70
72
20
24
36
36
39
99
114
19
2
3
87
122
123
122
119
130
133
186
215
223
241
309
284
3,545
3,657
3,811
3,989
4,033
4,233
4,508
4,659
4,807
4,931
5,071
5,232
5,561
5,937
6,305
4,852
5,235
5,536
5,796
6,374
7,155
7,509
8,391
8,899
9,184
8,138
7,842
8,594
8,887
9,701
8,467
8,964
9,453
9,931
10,566
11,546
12,175
13,278
13,953
14,319
13,423
13,297
14,396
15,135
16,294
490
516
573
635
679
727
759
881
932
910
875
877
949
1 ,052
1 ,088
5.4 Total RCRA
8,467
8,964
9,453
9,931 1C
),566
11,546
12,175
13,278
13,953
14,502
13,570
13,981
15,246
16,156
17,730
Federally Mandated
490
516
573
635
679
727
759
881
932
1 ,092
1 ,022
1 ,561
1 , 798
2,074
2,524
5.5 Superfund
Existing Regulations
EPA
16
58
103
189
226
271
Non-EPA Federal
22
53
84
State Government
0
6
13
25
34
45
Local Government
Pr i vate
0
9
28
48
71
Total Superfund
16
65
125
265
361
471
Federally Mandated
16
65
125
265
361
471
5.6 Total Land
8,467
8,964
9,453
9,931 1C
), 566
11,546
12,175
13,278
13,953
14,518
13,635
14,106
15,510
16,518
18,200
Federally Mandated
490
516
573
635
679
727
759
881
932
1 ,109
1 ,087
1 ,686
2,063
2,435
2,994
November 1990
-------
Costs of Land Pollution Control
5-33
Footnotes to Table 5-3F
Sum of operating costs for year in question, shown on corresponding lines of Table 5-2, plus amortized capital costs assuming an interest rate of 10 percent and a capital life of 20 years
for solid and hazardous waste and 30 years for LUST and Superfund on the accumulated capital investment shown in Table 5-1 since 1972.
November 1990
-------
5-34
Environmental Investments
Table 5-3G: RCRA COSTS ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Med i a
1
1990 1991 1992 1993 1
1995 1
1 997 1
2000
5.1
So I i d Waste
Existinq Regulations
EPA 3
Non-EPA Federal 284
Local Government 6,305
Private 9,701
Total Existing Regs 16,294
Federal ly Maridatid 1 ,088
New ReguI at i ons
Local Government
Pr i vate
Total New Regs
3
333
6,580
10,413
17,330
1 ,186
365
6,532
10,087
16,991
1 ,203
6, 751
10,339
17,500
1 ,264
12
438
6,973
10,588
18,011
1 ,328
14
478
7,198
10,833
18,522
1 ,394
443
443
16
520
7,353
10,988
18,877
1 ,453
691
136
18
565
7,510
11,119
19,212
1 ,514
916
195
1,110
20
606
7,668
11,239
19,533
1 ,571
1 ,140
254
1 ,393
22
650
7,826
11 ,371
19,869
1 ,632
1 ,243
313
1 ,555
24
698
7,988
11 ,494
20,204
1 ,696
1 ,346
313
1 ,658
26
750
8,150
11,603
20,529
1 , 763
313
1 , 761
8,311
11,711
20,853
1 ,832
1 ,552
313
1 ,864
30
861
8,473
11 ,796
21 ,160
1 ,904
1 ,655
313
1 ,967
Total Sol id Waste
16,294 17,330 16,991 17,500 18,011 1
5.2
5.3
32
920
8,636
11 ,874
21,463
1 ,978
1 , 758
313
2,070
19,703 20,322 20,926 21,424 21,862 22,291 22,718 23,127 23,533
Federally Mandated
1 ,088
1 ,186
1 ,203
1 ,264
1 ,328
1 ,837
2,279
2,625
2,965
3,187
3,354
3,525
3,697
3,872
4,049
Hazardous Waste
Existing Regulations
EPA 3 3
202
239
231
214
210
236
245
254
263
272
281
290
299
308
31 7
Non-EPA Federal
21
34
43
284
449
678
1 ,319
1 , 721
2,165
2,476
2,799
3,148
3,497
3,846
4,194
State Government
Local Government
Pr i vate
1 ,005
1 ,173
1 ,346
1 ,525
1 , 710
1 ,902
2,101
2,306
2,517
2,736
2,960
3,191
3,429
3,673
3,923
Total Existing Regs
1 ,229
1 ,445
1 ,620
2,023
2,370
2,816
3,665
4,281
4,946
5,484
6,040
6,629
7,225
7,827
8,435
Federally Mahdat^d
1 ,229
1 ,445
1 ,620
2,023
2,370
2,816
3,665
4,281
4,946
5,484
6,040
6,629
7,225
7,827
8,435
New Regu1 at i ons
EPA
3
3
3
3
3
3
3
3
3
3
3
3
3
3
State Government
9
9
9
9
9
9
9
5
5
5
5
5
5
5
Pr i vate
207
305
1 ,523
1 ,692
2,222
3,255
3,887
4,022
4,206
4,356
4,083
4,340
4,489
4,638
4,751
Total New Regs
207
31 7
1 ,535
1 , 704
2,234
3,267
3,899
4,034
4,214
4,364
4,091
4,348
4,497
4,646
4,759
Total Hazardous Waste
1 ,436
1 , 762
3,155
3,727
4,604
6,083
7,564
8,315
9,160
9,848
10,131
10,977
11,721
12,473
13,194
Federally Mandated
1 ,436
1 , 762
3,155
3,727
4,604
6,083
7,564
8,315
9,160
9,848
10,131
10,977
11 ,721
12,473
13,194
LUST
Existing Regulations
EPA
1
13
30
30
41
52
62
72
81
91
101
111
120
130
Total Existing Regs
1
13
30
30
41
52
62
72
81
91
101
111
120
130
Federally Mandated
1
13
30
30
41
52
62
72
81
91
101
111
120
130
New Regu1 at i ons
Local Government
130
256
311
370
420
315
290
293
295
359
343
344
Pr i vate
1 ,285
3,195
3,788
4,311
4,819
3,602
3,262
3,308
3,355
4,539
4,249
4,259
Total New Regs
1 ,415
3,452
4,099
4,682
5,239
3,917
3,552
3,601
3,650
4,898
4,592
4,603
Total LUST
1
13
1 ,444
3,482
4,140
4,734
5,301
3,988
3,634
3,692
3,751
5,008
4,713
4,733
Federally Mandated
1
13
1 ,444
3,482
4,140
4,734
5,301
3,988
3,634
3,692
3,751
5,008
4,713
4,733
Total RCRA
17,730
19,093
20,159
22,671
26,097
29,189
32,001
33,939
34,075
34,906
35,685
37,019
39,448
40,313
41 ,461
Federally Mandated
2,524
2,949
4,371
6,436
9,414
12,060
14,577
16,241
16,113
16,669
17,177
18,253
20,427
21,057
21,976
November 1990
-------
Costs of Land Pollution Control
5-35
Footnotes to Table 5-3G
Sum of operating costs for year in question, shown on conesponding lines of Table 5-2A, plus amortized capital costs assuming an interest rate of ten percent and a capital life of 20 years
for solid and hazardous waste and 30 years for LUST on the accumulated capital investment shown in Tables 5-1 and 5-1A since 1972.
November 1990
-------
5-36
Environmental Investments
Table 5-3H: CERCLA COSTS ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Superfund
Existing Regulations
EPA
271
493
672
850
985
1 ,126
1 ,310
1 ,506
1 ,713
1 ,933
2,165
2,410
2,667
2,935
3,217
Non-EPA Federal
84
125
161
324
467
664
1 ,108
1 ,466
1 , 790
2,121
2,389
2,686
2,983
3,279
3,576
State Government
45
54
83
118
155
198
244
296
352
413
479
549
625
704
789
Local Government
Private
71
115
167
280
395
523
667
824
996
1 ,182
1 ,383
1 ,598
1 ,828
2,072
2,331
Total Existing Regs
471
788
1 ,083
1 ,572
2,001
2,512
3,329
4,091
4,852
5,650
6,416
7,244
8,102
8,990
9,913
Federally Mandated
471
788
1 ,083
1 ,572
2,001
2,512
3,329
4,091
4,852
5,650
6,416
7,244
8,102
8,990
9,913
New Regu1 at i ons
Local Government
Pr i vate
Total New Regs
Fu11 1mp1ementat i on
Total Superfund
471
788
1 ,083
1 ,572
2,001
2,512
3,329
4,091
4,852
5,650
6,416
7,244
8,102
8,990
9,913
Federally Mandated
471
788
1 ,083
1 ,572
2,001
2,512
3,329
4,091
4,852
5,650
6,416
7,244
8,102
8,990
9,913
5.6 Total Land 18,200 19,881 21,242 24,244 28,098 31,700 35,330 38,030 38,927 40,556 42,101 44,263 47,550 49,303 51,373
Federal ly Mandated 2,994 3,737 5,454 8,008 11,415 14,571 1 7,906 20,332 20,965 22,319 23,593 25,497 28,529 30,048 31,888
Footnotes to Table 5-3H
Sum of the operating costs for year in question, shown on corresponding lines of Table 5-2B, plus interest (assuming a rate of 10 percent) and depreciation on the basis of capital life of
30 years on accumulated capital investment shown in Tables 5-1 and 5-1B since 1972.
November 1990
-------
6-1
6. COSTS OF CHEMICAL CONTROL
This Chapter discusses the costs of controlling chemicals that have useful properties to man as
well as undesirable environmental effects. In order to be consistent with both the relevant legislation
and EPA administrative organization, these chemicals are divided into toxic substances and
pesticides. The costs of chemical control are summarized in Tables 6-1, 6-2, and 6-3, and are
discussed in the following sections:
6.1 Toxic substance control;
6.2 Pesticide control; and
6.3 Total chemical control costs.
The components of, and documentation for, the costs of toxic substances and pesticide control
programs are contained in Appendices I and J, respectively.
Annualized costs of chemical control are calculated using capital amortization rates of three,
seven, and ten percent, and an assumed capital life of 20 years. The annualized costs discussed below
are those based on a seven percent rate. The annualized costs calculated using a rate of three percent
are approximately one to five percent lower, and those calculated using a ten percent rate are one to
five percent higher, than the estimates discussed below.
6.1. TOXIC SUBSTANCE CONTROL
The Toxic Substances Program is implemented under the authority of the Toxic Substances
Control Act (TSCA) of 1976. Title II of the Act was amended in 1986 to add the Asbestos Hazard
Emergency Response Act. Federal and private spending constitute the majority of expenditures under
TSCA; however, states and local "educational agencies" are prominent in the implementation of the
Title II asbestos programs.
TSCA provide two main types of regulatory authority: (1) collection of information to support
assessments of the potential hazards of chemical substances; and (2) control of releases of, and human
exposure to, toxic substances. The information collection components of TSCA include the authority
to require chemical manufacturers and processors to perform tests on their products for health and
environmental effects (TSCA Section 4); to provide certain information concerning the use and
effects of new chemicals in advance of their being introduced into the market (TSCA Section 5); and
to provide requested information relating to use, exposure, and effects of existing chemicals (TSCA
Section 8). The control authority of TSCA (Sections 6 and 7) allows EPA to regulate the
manufacture, processing, distribution in commerce, and the use and disposal of those substances
deemed to pose a significant risk to human health or the environment.
Total annualized costs for TSCA increased from $47 million in 1977 to $402 million in 1986.
Future costs are expected to rise substantially, however, due primarily to recently implemented
regulations relating to asbestos in schools and asbestos in products. Annualized costs for TSCA are
November 1990
-------
6-2
Environmental Investments
expected to reach $1.2 billion by the year 2000. The new asbestos rules will account for over 55 per-
cent of the total annualized costs for TSCA by 1995.
6.1.1. EPA and Non-EPA Federal
EPA costs for administering toxic substances control programs increased steadily since the
passage of TSCA, from an estimated $15 million in 1977 to $123 million in 1987. Future EPA costs
are projected to follow this trend, reaching $175 million in 1995 and $214 million by the year 2000.
Non-EPA Federal costs under TSCA have been more variable. Federal costs increased from $32
million in 1977 to $271 million in 1980, but then fell in subsequent years. Federal costs were an
estimated $127 million in 1987. Federal costs are expected to rise steadily in the future, however,
reaching $157 million in 1995 and $180 million by the year 2000.1
6.1.2. State and Local Governments
Although the TSCA program involves mainly Federal expenditure for program implementation
and private expenditure for compliance, states and localities bear some costs for the management of
asbestos in schools under the 1986 Title II asbestos amendment. This amendment requires EPA to
issue regulations prescribing proper inspection and abatement procedures for asbestos in school
buildings. Local educational agencies are required to develop asbestos management plans for the
school buildings under their respective authorities, and states are to establish contractor and
laboratory accreditation programs. Annualized costs to local and state governments for asbestos
removal in schools are expected to be $221 million in 1990, increasing to $568 million by 1993 and
beyond.
6.1.3. Private
Under TSCA, private industry incurs costs as a result of regulation of chemicals on the existing
TSCA Inventory as well as from review and regulation of new chemicals and new chemical uses. The
private costs associated with existing chemicals include compliance with three rules under Section
6 restricting the manufacture, use, and distribution in commerce of polychlorinated biphenyls (PCBs)
and one rule implementing a ban/phasedown on the use of asbestos in products. The costs associated
with existing chemicals also stem from a number of information collection rules under TSCA
Sections 4, 8 and 12. The private costs associated with new chemical uses include the costs of
1 The estimates of EPA TSCA costs in Tables 6-2 and 6-2 A are for the toxic substance
program as a whole. It should be noted that a comparison of Appendix I Tables 1-4 and I-4A
with Tables 6-2 and 6-2A shows that the more limited estimates of EPA costs in Appendix I,
which cover only TSCA Section 5, are considerably lower than the total EPA outlays shown in
the main text tables.
November 1990
-------
Costs of Chemical Control
6-3
preparing and filing Premanufacture Notifications and the costs of complying with Significant New
Use Rules.
Total annualized costs to the private sector averaged approximately $82 million between 1978
and 1984, and rose gradually from $101 million in 1985 to $115 million in 1987. These costs are
projected to rise significantly over the next decade, in large part due to the new asbestos b-
an/phasedown rule which is expected to add $53 million in annual costs by 1995 and $106 million
by the year 2000. Total annualized costs to the private sector are projected to reach $218 million by
1995 and $271 million by the year 2000.
6.2. PESTICIDE CONTROL
The pesticide program is implemented under the Federal Insecticide, Fungicide and Rodenticide
Act (FIFRA). Originally enacted in 1947, FIFRA received a major overhaul in 1972 and has been
amended a number of times since, the last in 1988. Pesticide program expenditures include those at
the Federal and state levels for the registration and re-registration of pesticide active ingredients,
certification of pesticide applicators, farmworker safety programs, and enforcement. At the private
level (including manufacturers, formulators, distributors and applicators), costs are associated with
compliance with FIFRA requirements, including registration-related toxicology and other pesticide
testing, pesticide disposal, storage, and application requirements, and pesticide cancellations and
suspensions.
Total annualized costs for pesticide regulation increased from $92 million in 1972 to $508 million
in 1979. Annual costs fell slightly over next the several years, averaging $432 over the period
1980-1988. Beginning in 1989, costs are expected to increase significantly due primarily to
accelerated pesticide re-registration and increased farmworker safety requirements mandated by the
1988 FIFRA amendments. Future annual costs are expected to rise from an estimated $697 million
in 1989 to $1.3 billion in 1995, and to over $1.6 billion by the year 2000.
6.2.1. EPA
EPA expenditures are associated primarily with pesticide registration. EPA approval is required
for the registration of all new pesticide products. Additionally, to ensure that previously registered
pesticides measure up to current scientific and regulatory standards, FIFRA requires the review and
re-registration of all existing pesticides. Of the approximately 600 active ingredients requiring re-
registration under FIFRA, EPA has issued registration standards for about 185. A registration
standard includes a comprehensive review of all the available data on the active ingredient, a list of
additional data needed for full registration, and EPA's current regulatory position on the pesticide.
Based on the pesticide test data, EPA may restrict the uses of pesticide products, cancel the
registration of pesticides deemed by the agency to cause unreasonable adverse effects on human
health or the environment, or suspend pesticide registration to prevent an imminent hazard. Other
EPA costs include grants to the states for enforcement, and certification and training programs for
pesticide applicators.
November 1990
-------
6-4
Environmental Investments
Total annual EPA costs under FIFRA averaged approximately $50 million over the years 1972
to 1988. EPA costs are expected to jump to over $110 million during 1989 and 1990 due to the
agency's development of pesticide storage and disposal requirements and for reimbursement of
storage costs to eligible registrants pursuant to the 1988 FIFRA amendments. Agency costs are
expected to fall to about $61 million in 1991, and then rise slowly over the remainder of the decade,
reaching $86 million by year 2000.
6.2.2. State and Local Governments
States have the primary responsibility for FIFRA enforcement, and state expenditures are mostly
for these activities. States may also be authorized to implement applicator certification and training
and farmworker safety programs and to issue experimental use permits.
State costs for all activities were less than $1 million per year from 1972 through 1976, but
jumped to $25 million in 1979. From 1980 through 1988, state costs averaged approximately $18
million per year. Annual state costs for all activities are expected to average approximately $24
million over the years 1989 through 2000.
6.2.3. Private
Private expenditures are borne by the affected commercial and agricultural concerns involved
with the registration, sale, storage, disposal and application of pesticides. The majority of private
compliance costs for years 1972 through 1988 were associated with registration-related pesticide
testing, pesticide storage and disposal, and pesticide cancellation and suspension. Private costs for
all activities rose steadily from $65 million in 1972 to $392 million in 1979. From 1980 through
1988, private costs for FIFRA averaged approximately $350 million per year. Future private costs
are expected to rise significantly due to acceleration of the re-registration process and increased farm-
worker safety requirements mandated by the 1988 FIFRA amendments. Private costs jumped to over
$550 million in 1989, and are expected to increase to an estimated $1.6 billion by the year 2000.
6.3. TOTAL CHEMICAL CONTROL COSTS
Total annualized costs of chemical control increased from $92 million in 1972 to $889 million
in 1980. Costs then fell until 1983, when they started to increase again, reaching about $820 million
in 1986-87. Private sector pesticide control costs accounted for over 40 percent of these expenditures.
Total costs are expected to increase significantly over the next several years, reaching about $2.5
billion in 1995 and $2.9 billion by the year 2000. Private expenditures for pesticide control are
projected to increase to an more than $1.6 billion by the year 2000. The increase in private pesticide
costs is due to an expected steady rise in costs for pesticide research and development, cancellations
and suspensions, and increased farmworker safety and applicator training and certification costs.
These cost increases reflect accelerated levels of pesticide re-registration activity and more stringent
pesticide applicator and farmworker safety requirements mandated by the 1988 FIFRA Amendments.
November 1990
-------
Costs of Chemical Control
Table 6-1: CHEMICAL SUBSTANCE CONTROL CAPITAL COSTS
(millions of 1986 dollars)
6-5
Rpt
Media
1972
1 973 1 974 1 975 1 976 1 977 1
1 979 1
1 Toxic Substances
Existinq Regulations
EPA
Non-EPA Federal
2
28 8
3 27
1 7
16
8
15
33
45
Pri vate
20
43
23
121
120
117
Total Toxic Substances
2
48 8
3 27
1 7
59
31
136
153
162
Federally Mandated
2
48 8
3 27
1 7
59
31
136
153
162
.2 Pesticides
EPA
Non-EPA Federal
State Government
Local Government
Pr i vate
Total Pesticides
Federally Mandated
3 TotaI Chem i caIs
Federally Mandated
27
27
1 7
1 7
59
59
31
31
136
136
153
153
162
162
Footnotes to Table 6-1
TOXIC SUBSTANCES
EPA: Assumed to be zero; EPA expenditures for toxic substances are assumed to be operating costs.
Non-EPA Federal: 1974-86 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis,
U.S. Department of Commerce.
Private: From Appendix I, Table 1-1, first line.
Existing Federally Mandated: Assumed to be 100 percent of total existing toxic substances pollution control costs.
Total Federally Mandated: Sum of total toxic substances pollution control costs.
PESTICIDES: As explained in Appendix J, pesticide capital costs are believed to be small and are taken to be zero in this report.
November 1990
-------
6-6 Environmental Investments
Table 6-1A: CHEMICAL SUBSTANCE CONTROL CAPITAL COSTS
(millions of 1986 dollars)
Rpt
Sec
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997 1998
1999
2000
6.1
Toxic Substances
Existing Regulations
EPA
Non-EPA Federal
45
42
48
53
59
65
70
76
82
87
93
99 104
110
116
State Government
Local Government
Pr i vate
117
114
110
89
89
89
89
89
Total Existing Regs
162
156
158
143
148
154
160
165
82
87
93
99 104
110
116
Federally Mandated
162
156
158
143
148
154
160
165
82
87
93
99 104
110
116
New Regu1 at i ons
Non-EPA Federal
Local Government
830
830
830
830
1
Pr i vate
Total New Regs
830
830
830
830
1
Total Toxic Substances
162
156
158
973
978
984
990
165
82
87
93
99 104
110
116
Federally Mandated
162
156
158
973
978
984
990
165
82
87
93
99 104
110
116
6.2
Pest i c i des
EPA
Non-EPA Federal
State Government
Local Government
Pr i vate
Total Pesticides
Federally Mandated
6.3
Total Chemicals
162
156
158
973
978
984
990
165
82
87
93
99 104
110
116
Federally Mandated
162
156
158
973
978
984
990
165
82
87
93
99 104
110
116
November 1990
-------
Costs of Chemical Control 6-1
Footnotes to Table 6-1A
TOXIC SUBSTANCES
EPA: Assumed to be zero; EPA expenditures for toxic substances are assumed to be operating costs.
Non-EPA Federal: 1986 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis, U.S.
Department of Commerce. Linear projection of expenditures for 1987-2000 based on historical data for the years 1981-1986.
Private: From Appendix I, Tables 1-1 andl-l A, first line.
Existing Federally Mandated: Assumed to be 100 percent of costs associated with total existing regulations for toxic substances.
New Non-EPA Federal: Estimated on the basis of the regulations and sources in Appendix A.
New Local Government: Estimated on the basis of the regulations and sources listed in Appendix A.
New Private: Estimated on the basis of the regulations and sources listed in Appendix A.
Total Federally Mandated: Sum of total costs associated with existing and new regulations for toxic substances.
PESTICIDES: As explained in Appendix J, pesticide capital costs are believed to be small and are taken to be zero in this report.
November 1990
-------
6-8
Environmental Investments
Table 6-2: CHEMICAL SUBSTANCE CONTROL OPERATING COSTS
(millions of 1986 dollars)
Rpt
Med i a
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
Toxic Substances
Existing Regulations
EPA
9
5
9
15
19
69
79
119
95
88
82
87
110
Non-EPA Federal
32
49
161
258
158
122
51
58
94
155
State Government
Local Government
Pr i vate
85
102
77
74
76
72
67
70
63
Total Toxic Substances
9
5
9
47
154
332
414
350
293
212
207
251
335
Federally Mandated
9
5
9
47
154
332
414
350
293
212
207
251
335
Pest i c i des
EPA
26
33
35
36
65
64
50
75
69
64
52
48
49
58
53
Non-EPA Federal
13
21
16
15
14
11
10
9
9
9
8
State Government
0
0
0
1
1
3
12
25
23
19
18
1 7
1 7
18
1 7
Local Government
Pr i vate
65
110
139
140
261
273
346
392
355
330
316
300
366
384
342
Total Pesticides
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
Federally Mandated
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
Total Chemicals
92
143
183
181
349
408
578
840
874
774
690
585
647
721
754
Federally Mandated
92
143
183
181
349
408
578
840
874
774
690
585
647
721
754
Footnotes to Table 6-2
TOXIC SUBSTANCES
EPA: Data from annual Justification of Appropriation Estimates for Committee on Appropriations (data for 1972-1974 are Budget Authority; data for 1975-1986 are Outlays).
Non-EPA Federal: 1974-86 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis,
U.S. Department of Commerce.
Private: From Appendix I, Table 1-4, last line.
November 1990
-------
Costs of Chemical Control
Existing Federally Mandated: Assumed to be 100 percent of total costs associated with toxic substance pollution control.
Total Federally Mandated: Sum of total costs associated with toxic substance pollution control.
PESTICIDES
EPA: From Appendix J, Table J-3, last line.
Non-EPA Federal: From Appendix J, Table J-4, last line.
State Government: From Appendix J, Table J-2, last line.
Private: From Appendix J, Table J-l, last line.
Existing Federally Mandated: Assumed to be 100 percent of total costs associated with existing pesticides pollution control.
Total Federally Mandated: Sum of total costs associated with pesticides pollution control.
November 1990
-------
6-10
Environmental Investments
Table 6-2A: CHEMICAL SUBSTANCE CONTROL OPERATING COSTS
(millions of 1986 dollars)
Rpt
Med i a
1991 1992 1993 1
1995 1
1997
2000
Toxic Substances
Existing Regulations
EPA 110 123 122 128
Non-EPA Federal 155 97 95 92
State Government
Local Government
Private 63 62 62 66
Total Existing Regs 329 283 278 285
Federally Mandated 329 283 278 285
New ReguI at i ons
Non-EPA Federal
Local Government 6 80 80
Private 4
Total New Regs 6 80 84
Total Toxic Substances 335 283 358 369
Federally Mandated 335 283 358 369
2 Pesticides
EPA
Non-EPA Federal
State Government
Local Government
63
250
250
318
318
62
293
293
128
4
132
425
425
152
61
297
297
191
4
195
492
492
61
303
303
255
50
305
79
59
306
306
255
52
307
613
613
1 75
76
311
311
255
53
619
619
73
31 7
31 7
255
94
349
191
71
322
322
255
97
352
674
674
61
328
328
255
100
355
207
61
334
334
255
103
358
692
692
214
63
62
339
339
255
106
361
700
700
53
52
59
111
114
61
63
65
68
71
74
77
80
83
86
8
8
7
7
7
8
7
7
7
7
8
8
8
8
8
1 7
16
16
24
20
21
21
25
22
23
24
25
29
26
27
Pr i vate
342
378
372
554
838
995
1 ,079
1 ,159
1 ,207
1 ,252
1 ,301
1 ,356
1 ,399
1 ,465
1 ,537
Total Pesticides
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
Federally Mandated
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
Total Chemicals
754
736
813
1 ,066
1 ,297
1 ,510
1 ,662
1 ,865
1 ,917
1 ,972
2,072
2,140
2,199
2,273
2,358
Federally Mandated
754
736
813
1 ,066
1 ,297
1 ,510
1 ,662
1 ,865
1 ,917
1 ,972
2,072
2,140
2,199
2,273
2,358
November 1990
-------
Costs of Chemical Control 6-11
Footnotes to Table 6-2A
TOXIC SUBSTANCES
EPA: Data from annual Justification of Appropriation Estimates for Committee on Appropriations (data for 1986-1988 are Outlays; amount for 1989 is Current Estimate; amount
for 1990 is Request). Linear projection of expenditures for 1991-2000 based on historical data for the years 1974-1990.
Non-EPA Federal: 1986 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis, U.S.
Department of Commerce. Linear projection of expenditures for 1987-2000 based on historical data for the years 1981-1986.
Existing Private: From Appendix I, Table I-4A, last line.
Existing Federally Mandated: Assumed to be 100 percent of total costs associated with existing toxic substance regulations.
New Non-EPA Federal: Estimated on the basis of the regulations and sources listed in Appendix A.
New Local Government: Estimated on the basis of the regulations and sources listed in Appendix A.
New Private: Estimated on the basis of the regulations and sources listed in Appendix A.
Total Federally Mandated: Sum of the sum of costs associated with existing and new toxic substances regulations.
PESTICIDES
EPA: From Appendix J, Table J-3A, last line.
Non-EPA Federal: From Appendix J, Table J-4A, last line.
State Government: From Appendix J, Table J-2A, last line.
Private: From Appendix J, Table J-l A, last line.
Existing Federally Mandated: Assumed to be 100 percent of total costs of existing pesticides pollution control.
Total Federally Mandated: Sum of total costs associated with pesticides pollution control.
November 1990
-------
6-12
Environmental Investments
Table 6-3: CHEMICAL SUBSTANCE CONTROL COSTS ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Med i a
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
Toxic Substances
Existing Regulations
EPA
9
5
9
15
19
69
79
119
95
88
82
87
110
Non-EPA Federal
32
52
1 72
271
1 73
138
68
77
116
181
State Government
Local Government
Pr i vate
87
104
79
76
82
80
86
101
105
Total Toxic Substances
9
5
9
47
158
345
429
367
315
237
245
303
402
Federally Mandated
9
5
9
47
158
345
429
367
315
237
245
303
402
Pest i c i des
EPA
26
33
35
36
65
64
50
75
69
64
52
48
49
58
53
Non-EPA Federal
13
21
16
15
14
11
10
9
9
9
8
State Government
0
0
0
1
1
3
12
25
23
19
18
1 7
1 7
18
1 7
Local Government
Pr i vate
65
110
139
140
261
273
346
392
355
330
316
300
366
384
342
Total Pesticides
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
Federally Mandated
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
Total Chemicals
92
143
183
181
349
408
583
853
889
791
712
610
685
773
822
Federally Mandated
92
143
183
181
349
408
583
853
889
791
712
610
685
773
822
Footnote to Table 6-3
Sum of operating costs for year in question, shown on corresponding lines of Table 6-2, plus amortized capital costs assuming an interest rate of seven percent and a capital life of 20 years
on the accumulated capital investment shown in Table 6-1 since 1972.
November 1990
-------
Costs of Chemical Control
Table 6-3A: CHEMICAL SUBSTANCE CONTROL COSTS ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
6-13
Rpt
Sec Media 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
6.1 Toxic Substances
Existing Regulations
EPA
110
123
122
128
98
144
152
160
168
1 75
183
191
199
207
214
Non-EPA Federal
181
127
129
131
134
138
142
146
151
157
163
1 70
1 74
1 74
180
State Government
Local Government
Pr i vate
105
115
125
137
143
150
158
167
164
165
165
166
164
165
165
Total Existing Regs
396
365
376
396
375
432
452
473
483
497
512
526
537
546
560
Federally Mandated
396
365
376
396
375
432
452
473
483
497
512
526
537
546
560
New Regu1 at i ons
Non-EPA Federal
Local Government
6
80
158
221
363
504
568
568
568
568
568
568
568
568
Pr i vate
4
4
4
4
50
52
53
94
97
100
103
106
Total New Regs
6
80
162
225
367
508
618
620
621
662
665
668
671
674
Total Toxic Substances
402
365
456
558
600
799
960
1 ,091
1 ,104
1,119
1 ,174
1 ,192
1 ,206
1 ,217
1 ,234
Federally Mandated
402
365
456
558
600
799
960
1 ,091
1 ,104
1,119
1 ,174
1 ,192
1 ,206
1 ,217
1 ,234
6.2 Pesticides
EPA
53
52
59
111
114
61
63
65
68
71
74
77
80
83
86
Non-EPA Federal
8
8
7
7
7
8
7
7
7
7
8
8
8
8
8
State Government
1 7
16
16
24
20
21
21
25
22
23
24
25
29
26
27
Local Government
Pr i vate
342
378
372
554
838
995
1 ,079
1 ,159
1 ,207
1 ,252
1 ,301
1 ,356
1 ,399
1 ,465
1 ,537
Total Pesticides
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
Federally Mandated
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
Total Chemicals
822
819
910
1 ,255
1 ,579
1 ,885
2,130
2,348
2,408
2,472
2,580
2,657
2,721
2,799
2,892
Federally Mandated
822
819
910
1 ,255
1 ,579
1 ,885
2,130
2,348
2,408
2,472
2,580
2,657
2,721
2,799
2,892
Footnote to Table 6-3A
Sum of operating costs for year in question, shown on corresponding lines of Table 6-2A, plus amortized capital costs assuming an interest rate of seven percent and a capital life of 20
years on the accumulated capital investment shown in Tables 6-1 and 6-1A since 1972.
November 1990
-------
6-14
Environmental Investments
Table 6-3B: CHEMICAL SUBSTANCE CONTROL COSTS ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Med i a
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
Toxic Substances
Existing Regulations
EPA
9
5
9
15
19
69
79
119
95
88
82
87
110
Non-EPA Federal
32
51
169
267
169
134
63
71
109
1 73
State Government
Local Government
Pr i vate
87
103
78
75
81
78
81
92
93
Total Toxic Substances
9
5
9
47
157
341
425
362
309
229
234
288
383
Federally Mandated
9
5
9
47
157
341
425
362
309
229
234
288
383
Pest i c i des
EPA
26
33
35
36
65
64
50
75
69
64
52
48
49
58
53
Non-EPA Federal
13
21
16
15
14
11
10
9
9
9
8
State Government
0
0
0
1
1
3
12
25
23
19
18
1 7
1 7
18
1 7
Local Government
Pr i vate
65
110
139
140
261
273
346
392
355
330
316
300
366
384
342
Total Pesticides
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
Federally Mandated
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
Total Chemicals
92
143
183
181
349
408
581
849
885
786
705
603
674
758
802
Federally Mandated
92
143
183
181
349
408
581
849
885
786
705
603
674
758
802
Footnote to Table 6-3B
Sum of operating costs for year in question, shown on conesponding lines of Table 6-2, plus amortized capital costs assuming an interest rate of three percent and a capital life of 20 years
on the accumulated capital investment shown in Table 6-1 since 1972.
November 1990
-------
Costs of Chemical Control
Table 6-3C: CHEMICAL SUBSTANCE CONTROL COSTS ANNUALIZED AT 3 PERCENT
6-15
(millions of 1986 dollars)
Rpt
Med i a
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
128
98
144
152
160
168
1 75
183
191
199
207
214
120
121
123
125
128
130
134
137
141
144
143
146
116
120
125
130
136
134
134
135
135
134
135
136
364
339
392
407
424
432
444
455
468
477
485
496
364
339
392
407
424
432
444
455
468
477
485
496
136
1 76
295
414
478
478
478
478
478
478
478
478
4
4
4
4
50
52
53
94
97
100
103
106
140
180
299
418
528
530
531
572
575
578
581
584
504
519
691
825
952
962
975
1 ,028
1 ,043
1 ,055
1 ,066
1 ,080
504
519
691
825
952
962
975
1 ,028
1 ,043
1 ,055
1 ,066
1 ,080
111
114
61
63
65
68
71
74
77
80
83
86
7
7
8
7
7
7
7
8
8
8
8
8
24
20
21
21
25
22
23
24
25
29
26
27
554
838
995
1 ,079
1 ,159
1 ,207
1 ,252
1 ,301
1 ,356
1 ,399
1 ,465
1 ,537
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
.200
1 ,498
1 , 777
1 ,995
2,209
2,267
2,328
2,434
2,508
2,571
2,647
2,738
.200
1 ,498
1 , 111
1 ,995
2,209
2,267
2,328
2,434
2,508
2,571
2,647
2,738
.1 Toxic Substances
Existinq Regulations
EPA 110
Non-EPA Federal 173
State Government
Local Government
Private 93
Total Existing Regs 377
Federally Mandated 377
New ReguI at i ons
Non-EPA Federal
Local Government 6
Pr i vate
Total New Regs 6
Total Toxic Substances 383
Federally Mandated 383
.2 Pesticides
EPA 53
Non-EPA Federal 8
State Government 1 7
Local Government
Private 342
Total Pesticides 420
Federally Mandated 420
3 Total Chemicals 802
Federally Mandated 802
123
118
100
341
341
341
341
52
8
16
378
453
453
795
795
122
119
107
59
7
16
372
454
454
Footnote to Table 6-3C
Sum of operating costs for year in question, shown on corresponding lines of Table 6-2A, plus amortized capital costs assuming an interest rate of three percent and a capital life of 20
years on the accumulated capital investment shown in Tables 6-1 and 6-1A since 1972.
November 1990
-------
6-16
Environmental Investments
Table 6-3D: CHEMICAL SUBSTANCE CONTROL COSTS ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Med i a
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
Toxic Substances
Existing Regulations
EPA
9
5
9
15
19
69
79
119
95
88
82
87
110
Non-EPA Federal
32
53
1 74
274
1 76
142
72
81
121
187
State Government
Local Government
Pr i vate
88
104
79
76
84
82
91
108
115
Total Toxic Substances
9
5
9
47
159
348
433
371
321
243
254
316
419
Federally Mandated
9
5
9
47
159
348
433
371
321
243
254
316
419
Pest i c i des
EPA
26
33
35
36
65
64
50
75
69
64
52
48
49
58
53
Non-EPA Federal
13
21
16
15
14
11
10
9
9
9
8
State Government
0
0
0
1
1
3
12
25
23
19
18
1 7
1 7
18
1 7
Local Government
Pr i vate
65
110
139
140
261
273
346
392
355
330
316
300
366
384
342
Total Pesticides
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
Federally Mandated
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
Total Chemicals
92
143
183
181
349
408
584
856
893
795
71 7
616
694
786
838
Federally Mandated
92
143
183
181
349
408
584
856
893
795
71 7
616
694
786
838
Footnote to Table 6-3D
Sum of operating costs for year in question, shown on corresponding lines of Table 6-2, plus amortized capital costs assuming an interest rate of ten percent and a capital life of 20 years
on the accumulated capital investment shown in Table 6-1 since 1972.
November 1990
-------
Costs of Chemical Control
Table 6-3E: CHEMICAL SUBSTANCE CONTROL COSTS ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
6-17
Rpt
Med i a
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Toxic Substances
Existinq Regulations
EPA
110
123
122
128
98
144
152
160
168
1 75
183
191
199
207
214
Non-EPA Federal
187
134
137
141
145
150
156
162
169
1 77
185
194
200
201
208
State Government
Local Government
Pr i vate
115
128
140
154
163
1 72
182
192
190
190
191
191
189
190
190
Total Existing Regs
413
385
400
423
406
466
489
514
527
543
559
576
588
597
613
Federally Mandated
413
385
400
423
406
466
489
514
527
543
559
576
588
597
613
New Regu1 at i ons
Non-EPA Federal
Local Government
6
80
1 77
259
420
581
645
645
645
645
645
645
645
645
Pr i vate
4
4
4
4
50
52
53
94
97
100
103
106
Total New Regs
6
80
181
263
424
585
695
697
698
739
742
745
748
751
Total Toxic Substances
419
385
480
605
669
891
1 ,074
1 ,209
1 ,224
1 ,241
1 ,298
1 ,318
1 ,333
1 ,345
1 ,364
Federally Mandated
419
385
480
605
669
891
1 ,074
1 ,209
1 ,224
1 ,241
1 ,298
1 ,318
1 ,333
1 ,345
1 ,364
6.2 Pesticides
EPA
53
52
59
111
114
61
63
65
68
71
74
77
80
83
86
Non-EPA Federal
8
8
7
7
7
8
7
7
7
7
8
8
8
8
8
State Government
1 7
16
16
24
20
21
21
25
22
23
24
25
29
26
27
Local Government
Pr i vate
342
378
372
554
838
995
1 ,079
1 ,159
1 ,207
1 ,252
1 ,301
1 ,356
1 ,399
1 ,465
1 ,537
Total Pesticides
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
Federally Mandated
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
Total Chemicals
838
839
934
1 ,301
1 ,648
1 ,976
2,244
2,466
2,528
2,594
2,705
2,783
2,849
2,927
3,022
Federally Mandated
838
839
934
1 ,301
1 ,648
1 ,976
2,244
2,466
2,528
2,594
2,705
2,783
2,849
2,927
3,022
Footnote to Table 6-3E
Sum of operating costs for year in question, shown on conesponding lines of Table 6-2A, plus amortized capital costs assuming an interest rate of ten percent and a capital life of 20 years
on the accumulated capital investment shown in Tables 6-1 and 6-1A since 1972.
November 1990
-------
7-1
7. COSTS OF MULTI-MEDIA CONTROL PROGRAMS
There are a number of environmental protection programs that are not directed towards
controlling pollution in any one environmental medium. The costs of these programs are shown
in Tables 7-1, 7-2, and 7-3, and discussed in the following sections:
7.1. Management and support;
7.2. Energy;
7.3. Interdisciplinary;
7.4. Emergency planning and community right to know;
7.5. Undesignated non-EPA Federal; and
7.6. Total multi-media costs.
Annualized costs for multi-media programs were calculated using capital amortization rates of
three, seven, and ten percent, and an assumed 20 year capital life. The annualized costs discussed
below are those calculated using a seven percent rate. The estimates derived using a three percent
rate are approximately one to six percent lower, and those calculated using a ten percent rate are one
to five percent higher, than the estimates discussed below.
7.1. EPA MANAGEMENT AND SUPPORT
EPA expenditures for the Management and Support Program provide executive direction and
policy oversight for all EPA programs as well as administrative and support services not assigned
to specific programs. Program expenditures rose gradually over time from a low of $96 million in
1972 to $276 million in 1987. Annual costs are projected to increase to $460 million by the year
2000. The major components of management and support are: program management, agency man-
agement, regional management and support, and general support services for all agency programs.
Program management includes policy development, program development and oversight, and
the associated management activities for eight of EPA's program offices. These program offices
include Air and Radiation, Water, Enforcement and Compliance Monitoring, External Affairs,
Pesticides and Toxic Substances, General Counsel, Research and Development, and Solid Waste and
Emergency Response. In addition, liaison activities are performed with other Federal agencies and
offices, including the Office of Management and Budget.
Agency management is comprised of the following functions and activities: policy direction;
policy, planning and evaluation; legal services for litigation; external affairs; inspector general
activities; and administration and resource management. Activities under the Agency management
budget are concerned with providing support and guidance to the agency on its policies. In addition,
assistance is provided to ensure policy and program implementation.
November 1990
-------
7-2
Environmental Investments
Regional management provides centralized management and administrative functions for the
regional offices as well as direction and support for administrative and financial services, budget
development and execution, and legal and analytical support. The program consists of several
elements ranging from resource management to financial management to regional management and
counsel. Expenditures cover the regional and deputy regional administrators, their immediate staffs
and regional staff for public affairs, Congressional and intergovernmental relations, and civil rights.
The final component of management and support is general support services for all agency
programs. This component accounts for the largest expenditure. General support is provided for
all agency programs except Superfund. Support is provided in the areas of professional training,
support services, automated data processing, and laboratory support.
7.2. EPA ENERGY PROGRAM
The Energy Program is a multi-media research and development effort aimed at providing
scientific information for the evaluation of environmental impacts from, and the potential controls
on, the nation's energy sector. Expenditures are incurred only by EPA since the program is limited
to research and development, and does not involve the implementation of a regulatory program.
EPA costs rose gradually from $46 million in 1974 to $183 million in 1980. Since 1980,
expenditures for the Energy Program have fallen steadily, reaching $54 million in 1987. Projections
for future annual costs show program costs falling further overtime, reaching zero by the year 1996.
For the past several years, the Energy Program has concentrated on two principal areas of
research: acid deposition and limestone injection multistage burner (LIMB) control technology.
The agency's acid deposition research is a component of the National Acid Precipitation Assessment
Program (NAPAP) established by the Energy Security Act of 1980. The current research addresses
both sources and effects of acid deposition. This includes developing estimates of man-made sulfur
oxides (SOJ, nitrogen oxides (NOx), volatile organic compounds (VOCs), and alkaline material air
emissions; field studies and model development of atmospheric transport, transformation, and
deposition processes; monitoring and measurement of wet and dry deposition levels; assessment and
quantification of aquatic and terrestrial effects of acid deposition; assessment of effects on materials
and cultural resources; and evaluation of "cost of controls" data.
EPA expenditures on LIMB control technology involves research designed to develop,
demonstrate, and evaluate emission control systems to reduce air emissions of SOx and NOx from
pulverized coal-fired boilers. Specifically, the research program involves pilot-scale testing of
LIMB processes, commercial demonstrations of the wall- fired boiler and the tangential-fired boiler
technologies, and the analyses of waste characteristics and disposal from the commercial scale
tangential-fired boiler technology.
November 1990
-------
Costs of Multi-Media Control Programs
7-3
7.3. EPA INTERDISCIPLINARY PROGRAM
The Interdisciplinary Program addresses environmental issues that affect several media and
require an interdisciplinary approach. Activities within the program include inter-media research,
Federal agency compliance with pollution control laws, and the legal aspects of the agency's
enforcement efforts.
Annual program expenditures increased from $11 million in 1972 to $37 million in 1980.
Expenditures fell to approximately $17 million for each of the years 1981-82, and then began to
climb, reaching $59 million in 1987. Annual costs for the program are projected to rise steadily in
the future to $184 million in the year 2000.
The Interdisciplinary Research Program encompasses several different programs which are
outlined below.
• The Scientific Assessment Program has responsibility for developing and ensuring
consistency of approach to uniform risk assessment guidelines for the Agency.
• The Technical Information and Liaison Program provides for the production and transfer of
technical and scientific information from the Office of Research and Development (ORD)
with a focus on communicating cost-effective methods for complying with EPA regulations.
• The Regulatory Support Program works to ensure that Agency regulation development is
consistent with current technical and scientific research findings.
• The Exploratory Research Program conducts long-range exploratory research.
• The Quality Assurance Program provides centralized guidance and management for
agency-wide quality assurance activities and performs audits to assess their effectiveness.
• The Integrated Program to reduce uncertainties in risk assessment develops exposure and
exposure-response models for estimating adverse effects on humans and ecosystems
attributable to environmental pollution.
• The NEPA Compliance Program ensures that Agency activities comply with the intent of
NEPA.
• The Federal Facilities Compliance program oversees Federal compliance with all Federal
statutory requirements.
• The Environmental Review Program ensures that Federal agencies carry out their activities
in an environmentally sound manner, pursuant to NEPA and Section 309 of the Clean Water
Act.
November 1990
-------
7-4
Environmental Investments
• The Indians Program develops and implements interdisciplinary policies for dealing with
Indian tribes on environmental problems.
• The Enforcement Policy and Operations provides guidance for consistent enforcement
activities for all non-Superfund activities, including establishment of enforcement and
monitoring priorities and policies for enforcement procedure selection and investigation
efforts, legal case development, litigation, and adjudicatory hearing activities for media
enforcement programs.
• The National Enforcement Investigations Center provides support in preparing enforcement
cases and serves as a point of coordination and support for complex investigations.
7.4. COMMUNITY RIGHT TO KNOW PROGRAM (EPCRA)
The Emergency Planning and Community Right to Know Act (EPCRA), also known as the
SARA Title III, sets requirements for Federal, state, and local governments and industry regarding
emergency planning and "community right-to-know" reporting on hazardous and toxic chemicals.
EPCRA provides for public access to information on possible hazardous chemical exposures and
releases to all environmental media.
The annualized costs of the EPCRA provisions were an estimated $277 million in 1988, $545
million in 1989, and are estimated to reach almost $600 million in 1990. Future costs are expected
to be $916 million per year. The private sector is expected to account for about 96 percent of these
expenditures, and local governments the remainder. No data are available on state and Federal costs
under the program.
7.5. UNDESIGNATED NON-EPA FEDERAL
A significant portion of non-EPA Federal expenditures for environmental-related activities are
not broken down by media. They have been included under the multi-media section although it is
not known whether they actually possess a multi-media character. Such non-EPA Federal
expenditures have been relatively high, increasing from $268 million in 1974 to $485 million in
1979. Annual expenditures averaged $368 million during the period 1981-1988. If recent trends
continue into the future, these EPA expenditures will rise over the next several years, reaching $738
million by the year 2000.
7.6. TOTAL MULTI-MEDIA COSTS
On an annualized basis, total expenditures for multi-media environmental programs increased
from $108 million in 1972 to $869 million in 1980. Over 50 percent of these expenditures are
non-EPA Federal costs, and approximately 25 percent are EPA costs for its management and
support programs. During the period 1981-1987, annual expenditures on multi-media programs
averaged $728 million. Future annual costs are expected to rise significantly, largely due to the
November 1990
-------
Costs of Multi-Media Control Programs 7-5
costs associated with the recently implemented EPCRA provisions. Annual costs are expected to
increase from an estimated $842 million in 1987 to $2.3 billion by the year 2000. The EPCRA
provisions are expected to account for approximately 40 percent of these costs, undesignated
non-EPA Federal programs 32 percent, and EPA management and support programs 20 percent.
November 1990
-------
7-6
Environmental Investments
Table 7-1: MULTI-MEDIA PROGRAMS CAPITAL COSTS
(millions of 1986 dollars)
Rpt
Sec Media 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986
7.1 Management & Spt (EPA)
7.2 Energy (EPA)
7.3 Interd i sci pi in (EPA)
7.4 EPCRA
EPA
Local Government
Pr i vate
Total EPCRA
7.5 Undesig (Non-EPA Fed) 4 19 45 13 42 68 120 76 79 109 84 46
7.6 Total Multi-Media 4 19 45 13 42 68 120 76 79 109 84 46
Footnotes for Table 7-1
UNDESIGNATED
Non-EPA Federal: 1981-86 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis,
U.S. Department of Commerce.
November 1990
-------
Costs of Multi-Media Control Programs
Table 7-1 A: MULTI-MEDIA PROGRAMS CAPITAL COSTS
(millions of 1986 dollars)
7-7
Rpt
Sec Media 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
7.1 Management & Spt (EPA)
7.2 Energy (EPA)
7.3 Interd i sci pi in (EPA)
7.4 EPCRA
EPA
Local Government
149
Pr i vate
1 ,716
371
1 ,519
Total EPCRA
1 ,865
371
1 ,519
7.5 Undesig (Non-EPA Fed) 4
6 43
34
24
15
5
7.6 Total Mu11i-Med i a 4
6 43
1 ,899
395
1 ,534
5
Footnotes for Table 7-1A
EMERGENCY PLANNING AND COMMUNITY RIGHT TO KNOW (EPCRA)
Local government: Estimated on the basis of the regulations and sources listed in Appendix A.
Private: Estimated on the basis of the regulations and sources listed in Appendix A.
UNDESIGNATED
Non-EPA Federal: 1986 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis, U.S.
Department of Commerce. Linear projection of expenditures for 1987-2000 based on historical data for the years 1981-1986.
November 1990
-------
7-8 Environmental Investments
Table 7-2: MULTI-MEDIA PROGRAMS OPERATING COSTS
(millions of 1986 dollars)
Rpt
Sec
Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
7.1
Management & Spt (EPA)
96
108
117
127
118
246
250
216
214
257
244
243
269
271
282
7.2
Energy (EPA)
46
43
117
160
187
156
183
137
105
72
47
43
58
7.3
1nterd i sci pi in (EPA)
11
30
30
34
28
37
51
29
37
18
16
28
43
56
53
7.4
EPCRA
EPA
Local Government
Pr i vate
Total EPCRA
7.5
Undesig (Non-EPA Fed)
268
384
463
470
408
473
416
253
205
305
245
254
458
7.6
Total Multi-Media
108
139
461
587
726
913
896
875
850
665
570
648
603
625
851
Footnotes for Table 7-2
MANAGEMENT & SUPPORT
EPA: Data from annual Justification of Appropriation Estimates for Committee on Appropriations (amount for 1974 is Budget Authority; data for 1975-1986 are Outlays).
ENERGY
EPA: Data from annual Justification of Appropriation Estimates for Committee on Appropriations (amount for 1974 is Budget Authority; data for 1975-1986 are Outlays).
INTERDISCIPLINARY
EPA: Data from annual Justification of Appropriation Estimates for Committee on Appropriations (amount for 1974 is Budget Authority; data for 1975-1986 are Outlays).
UNDESIGNATED
Non-EPA Federal: 1981-86 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis,
U.S. Department of Commerce.
November 1990
-------
Costs of Multi-Media Control Programs 7-9
Table 7-2A: MULTI-MEDIA PROGRAMS OPERATING COSTS
(millions of 1986 dollars)
Rpt
Sec
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
7.1
Management & Spt (EPA)
282
276
313
323
342
378
363
375
387
399
411
424
436
448
460
7.2
Energy (EPA)
58
54
53
51
40
24
25
19
13
6
7.3
1nterd i sci pi in (EPA)
53
59
58
59
100
126
111
120
129
138
147
156
165
1 75
184
7.4
EPCRA
EPA
Local Government
24
24
24
24
24
24
24
24
24
24
24
24
Private
101
310
216
538
538
538
538
538
538
538
538
538
538
Total EPCRA
101
334
240
562
562
562
562
562
562
562
562
562
562
7.5
Undesig (Non-EPA Fed)
458
382
405
428
450
473
496
519
541
564
587
610
632
655
678
7.6
Total Multi-Media
851
772
930
1 ,196
1 ,172
1 ,563
1 ,557
1 ,594
1 ,632
1 ,670
1 , 708
1 , 751
1 , 795
1 ,839
1 ,883
Footnotes for Table 7-2A
MANAGEMENT & SUPPORT
EPA: Data from annual Justification of Appropriation Estimates for Committee on Appropriations (data for 1986-1988 are Outlays; amount for 1989 is Current Estimate; amount
for 1990 is Request). Linear projection of expenditures for 1991 -2000 based on data for the years 1981-1990.
ENERGY
EPA: Data from annual Justification of Appropriation Estimates for Committee on Appropriations (data for 1986-1988 are Outlays; amount for 1989 is Current Estimate; amount
for 1990 is Request). Linear projection of expenditures for 1991 -2000 based on data for the years 1986-1990.
INTERDISCIPLINARY
EPA: Data from annual Justification of Appropriation Estimates for Committee on Appropriations (data for 1986-1988 are Outlays; amount for 1989 is Current Estimate; amount
for 1990 is Request). Linear projection of expenditures for 1991 -2000 based on data for the years 1981-1990.
November 1990
-------
7-10
Environmental Investments
EMERGENCY PLANNING AND COMMUNITY RIGHT TO KNOW (EPCRA)
Local government: Estimated on the basis of the regulations and sources listed in Appendix A.
Private: Estimated on the basis of the regulations and sources listed in Appendix A.
UNDESIGNATED
Non-EPA Federal: 1986 data from Federal Funding for Pollution Control survey forms completed by each Federal Agency and submitted to the Bureau of Economic Analysis, U.S.
Department of Commerce. Linear projection of expenditures for 1987-2000 based on historical data for the years 1981-1986.
November 1990
-------
Costs of Multi-Media Control Programs 7-11
Table 7-3: MULTI-MEDIA PROGRAMS COSTS ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Sec
Media
1972
1 973 1 974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
7.1
Management & Spt (EPA)
96
108 117
127
118
246
250
216
214
257
244
243
269
271
282
7.2
Energy (EPA)
46
43
117
160
187
156
183
137
105
72
47
43
58
7.3
1nterd i sci pi in (EPA)
11
30 30
34
28
37
51
29
37
18
16
28
43
56
53
7.4
EPCRA
EPA
Local Government
Pr i vate
Total EPCRA
7.5
Undesig (Non-EPA Fed)
268
384
465
476
416
485
434
282
242
349
299
316
525
7.6
Total Multi-Media
108
139 461
587
729
919
903
886
868
695
606
692
657
687
918
Footnotes to Table 7-3
Sum of operating costs for year in question, shown on corresponding lines of Table 7-2, plus amortized capital costs assuming an interest rate of 7 percent and a capital life of 20 years
on the accumulated capital investment shown in Table 7-1 since 1972.
November 1990
-------
7-12
Environmental Investments
Table 7-3A: MULTI-MEDIA PROGRAMS COSTS ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Media
1991
378
24
126
1992
363
25
111
1993
375
1<
120
1994 1995
387 399
13 (
129 138
1996 1997 1998
411 424 436
1999 2000
7.1 Management & Spt (EPA) 282 276 313 323 342
7.2 Energy (EPA) 58 54 53 51 4(
7.3 Interdiscipi in (EPA) 53 59 58
7.4 EPCRA
EPA
Local Government 14
Private 263
Total EPCRA 277
7.5 Undesig (Non-EPA Fed) 525 453 479
7.6 Total Multi-Media 918 842 1,180 1,
59
507
545
504
556 878
594 916
528 551
1,603 1,995 1,
916
574
147
916
597
916
619
916
642
916
663
156
165
916
916
703
1 75
916
721
916
738
2,027 2,065 2,102 2,1
2,177 2,220 2,260 2,
Footnotes to Table 7-3A
Sum of operating costs for year in question, shown on corresponding lines of Table 1-2A, plus amortized capital costs assuming an interest rate of 7 percent and a capital life of 20 years
on the accumulated capital investment shown in Tables 7-1 and 7-1A since 1972.
November 1990
-------
Costs of Multi-Media Control Programs 7-13
Table 7-3B: MULTI-MEDIA PROGRAMS COSTS ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Sec
Media
1972 1 973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
7.1
Management & Spt (EPA)
96 108
117
127
118
246
250
216
214
257
244
243
269
271
282
7.2
Energy (EPA)
46
43
117
160
187
156
183
137
105
72
47
43
58
7.3
1nterd i sci pi in (EPA)
11 30
30
34
28
37
51
29
37
18
16
28
43
56
53
7.4
EPCRA
EPA
Local Government
Pr i vate
Total EPCRA
7.5
Undesig (Non-EPA Fed)
268
384
465
475
413
481
429
274
231
336
284
298
505
7.6
Total Multi-Media
108 139
461
587
728
91 7
901
883
863
686
596
679
642
669
898
Footnotes to Table 7-3B
Sum of operating costs for year in question, shown on corresponding lines of Table 7-2, plus amortized capital costs assuming an interest rate of 3 percent and a capital life of 20 years
on the accumulated capital investment shown in Table 7-1 since 1972.
November 1990
-------
7-14 Environmental Investments
Table 7-3C: MULTI-MEDIA PROGRAMS COSTS ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Sec Media 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
7.1 Management & Spt (EPA) 282 276 313 323 342 378 363 375 387 399 411 424 436 448 460
7.2 Energy (EPA) 58 54 53 51 40 24 25 19 13 6
7.3 Interdiscipl in (EPA) 53 59 58 59 100 126 111 120 129 138 147 156 165 1 75 184
7.4 EPCRA
EPA
Local Government 10 34 34 34 34 34 34 34 34 34 34 34 34
Private 216 450 458 780 780 780 780 780 780 780 780 780 780
Total EPCRA 226 484 492 814 814 814 814 814 814 814 814 814 814
7.5 Undesig (Non-EPA Fed) 505 433 458 482 506 529 551 574 597 619 641 661 682 702 720
7.6 Total Multi-Media 898 822 1,108 1,400 1,479 1,871 1,865 1,902 1,940 1,978 2,014 2,055 2,098 2,139 2,178
Footnotes to Table 7-3C
Sum of operating costs for year in question, shown on corresponding lines of Table 1-2A, plus amortized capital costs assuming an interest rate of 3 percent and a capital life of 20 years
on the accumulated capital investment shown in Tables 7-1 and 7-1A since 1972.
November 1990
-------
Costs of Multi-Media Control Programs 7-15
Table 7-3D: MULTI-MEDIA PROGRAMS COSTS ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Sec
Media
1972 1 973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
7.1
Management & Spt (EPA)
96 108
117
127
118
246
250
216
214
257
244
243
269
271
282
7.2
Energy (EPA)
46
43
117
160
187
156
183
137
105
72
47
43
58
7.3
1nterd i sci pi in (EPA)
11 30
30
34
28
37
51
29
37
18
16
28
43
56
53
7.4
EPCRA
EPA
Local Government
Pr i vate
Total EPCRA
7.5
Undesig (Non-EPA Fed)
268
384
466
478
418
487
438
290
250
360
313
331
541
7.6
Total Multi-Media
108 139
461
587
729
921
905
889
873
702
615
702
671
702
934
Footnotes to Table 7-3D
Sum of operating costs for year in question, shown on corresponding lines of Table 7-2, plus amortized capital costs assuming an interest rate of 10 percent and a capital life of 20 years
on the accumulated capital investment shown in Table 7-1 since 1972.
November 1990
-------
7-16 Environmental Investments
Table 7-3E: MULTI-MEDIA PROGRAMS COSTS ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Sec
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
7.1
Management & Spt (EPA)
282
276
313
323
342
378
363
375
387
399
411
424
436
448
460
7.2
Energy (EPA)
58
54
53
51
40
24
25
19
13
6
7.3
1nterd i sci pi in (EPA)
53
59
58
59
100
126
111
120
129
138
147
156
165
1 75
184
7.4
EPCRA
EPA
Local Government
18
42
42
42
42
42
42
42
42
42
42
42
42
Private
303
555
640
962
962
962
962
962
962
962
962
962
962
Total EPCRA
320
597
681
1 ,003
1 ,003
1 ,003
1 ,003
1 ,003
1 ,003
1 ,003
1 ,003
1 ,003
1 ,003
7.5
Undesig (Non-EPA Fed)
541
470
497
522
547
570
593
616
638
661
681
699
720
738
752
7.6
Total Multi-Media
934
860
1 ,241
1 ,553
1 , 709
2,101
2,095
2,133
2,170
2,208
2,243
2,282
2,324
2,363
2,399
Footnotes to Table 7-3E
Sum of operating costs for year in question, shown on corresponding lines of Table 7-2A, plus amortized capital costs assuming an interest rate of 10 percent and a capital life of 20 years
on the accumulated capital investment shown in Tables 7-1 and 7-1A since 1972.
November 1990
-------
8-1
8. TOTAL COSTS AND MAJOR SOURCES OF UNCERTAINTY
This chapter summarizes estimates of total costs for all pollution control efforts and examines
briefly the major sources of uncertainty surrounding these estimates. Total costs are derived by
aggregating the cost estimates for each of the environmental media presented in Chapters 3 through
7. These totals are presented in Tables 8-1 through 8-18 as explained below.
Total costs are given in several different ways. Tables 8-1 through 8-3 show costs by
environmental medium under the present implementation scenario, which includes costs pursuant
to all current and forthcoming control programs. Following the format of the cost tables presented
in earlier chapters, Table 8-1 shows total capital costs, Table 8-2 shows total operating costs, and
Table 8-3 shows total annualized costs based on capital amortization rates of seven, three, and ten
percent, respectively. Tables 8-4 through 8-6 present total costs by environmental medium under
the full implementation scenario, which includes the expenditures required to bring the nation into
compliance with the ozone NAAQS and those required to satisfy all wastewater treatment needs,
in addition to the costs for all current and forthcoming control programs. Tables 8-7 through 8-9
present total costs for the subset of environmental programs that are mandated by Federal laws and
regulations. Tables 8-10 through 8-12 show total costs by funding source. Tables 8-13 and 8-14
show the effect on total annualized costs for air and water programs of including pre-1972 capital
costs. Tables 8-15 through 8-17 show total costs by environmental medium, major EPA regulatory
program, and by existing and new regulatory programs. Finally, Table 8-18 and 8-19 present total
expenditures—which represent the sum of capital and operating costs—by environmental medium
and by existing and new regulatory programs assuming full and present implementation,
respectively.
8.1. GENERAL TRENDS IN TOTAL COSTS
General trends in pollution control costs over time are discussed in this section. The discussion
proceeds in the same general order as the data tables. Where annualized costs are discussed, trends
based on the estimates calculated at capital amortization rates of seven percent are given first. These
are followed by a range of estimates bracketed by annualized cost estimates calculated at rates of
three and ten percent, respectively. The ranges indicate the sensitivity of the cost estimates to the
rate of capital amortization used for annualization. All the estimates are in 1986 dollars.
8.1.1. Total Capital Expenditures
As shown in more detail in Tables 8-1 and 8-4, total pollution control capital expenditures can
be summarized as follows:
November 1990
-------
8-2
Environmental Investments
1972
1987
1990
2000
Present
Implemen-
tation
Full
Implemen-
tation
Pollution Control Capital Invest-
ment (billions of 1986$)
20
30
41
30
39
Pollution Control Capital Invest-
ment (billions of 1990$)
23
35
47
35
45
As Percent of Total Capital
Investment
2.5
2.3
2.8
1.7
1.9
Capital costs are also shown in 1990 dollars in order to make them more relevant for the time frame
in which this Report will be issued.1
As shown in Tables 8-1 and 8-4, total pollution control capital expenditures were relatively
stable at about $25-30 billion annually over the period 1975-87. There is expected to be a
significantly higher level of capital expenditures during the period 1988-92, however. Capital
expenditures are estimated to reach $43 billion in 1992, followed by falling levels over the years
1993-2000 except for a large jump in 1998. Capital expenditures are expected to reach $47 billion
in 1998 due to over $10 billion in capital investment for the upgrade/replacement of underground
storage tanks in that year. Capital expenditures are then expected to fall back to roughly $36 billion
over years 1999-2000. It should be noted, however, that because some of the future cost estimates
contained in the Regulatory Impact Analyses and other sources are given in terms of annualized
costs rather than being disaggregated between capital and operating costs, capital costs for future
years may be underestimated relative to operating costs because when in doubt it was sometimes
easier to assign all of the annualized costs shown in these studies to operating costs. This has the
advantage of resulting in no change in annualized costs but possibly some overstatement of
operating costs.
To put these estimates in perspective in terms of their impact on the U.S. capital markets, it is
useful to compare capital investment in pollution control as a percentage of total national investment
in plant and equipment over time. Figure 8-1 shows the highest percentages were in the mid-1970s
at a little over three percent. These rates were somewhat lower over the period 1978-1982, and even
lower over the next five years. Pollution control capital costs were an estimated 2.3 percent of
national capital expenditures in 1987.
1 The costs shown in 1986 dollars were multiplied by 1.153 to obtain 1990 dollars, in accordance
with the GNP deflator shown in Table 1-2.
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-3
Capital costs as a percentage of total capital investment jumped to 2.8 percent in 1988, but are
estimated to fall steadily over the period 1989-1996, from 2.9 percent in 1989 to two percent in
1997. After ajump to 2.7 percent in 1998 due to large capital outlays for the upgrade/replacement
of underground storage tanks, rates are expected to resume this fall, dropping to 1.7 percent by the
year 2000.2
8.1.2. Total Annualized Costs
As shown in Tables 8-3 and 8-6, total annualized costs for all pollution control activities in the
United States at seven percent interest have increased and are projected to increase as follows:
1972
1987
1990
2000
Present Imple-
mentation
Full Imple-
mentation
Total Annualized Costs
(billions of 1986$)
26
85
100
148
160
Total Annualized Costs
(billions of 1990$)
30
98
115
171
185
As Percent of GNP
0.9
1.9
2.1
2.6
2.8
In order to provide a frame of reference to judge the relative importance of environmental costs to
a well-known aggregate measure of economic activity, annualized costs as a percentage of Gross
National Product (GNP) is also computed,3 even though the approach taken toward accounting for
capital costs is different. Estimates of annualized costs over for the period 1972-2000 under each
of the alternative scenarios are shown in Figure 8-2. Annual costs as a percentage of GNP are
shown graphically in Figure 8-3.
If capital amortization rates of three and ten percent are used, the total annualized cost estimates
range from $73-$95 billion in 1987. In the year 2000 costs would range from $126-$166 under the
present implementation scenario, and S137-S179 billion under the full implementation scenario.
2 In order to compute capital investment in pollution control as a percentage of total capital
investment for future years, data on total national plant and equipment expenditures over the
period 1972-1988 (in constant 1986 dollars) were linearly extrapolated to years 1989-2000.
3 In order to compute total pollution control costs as a percentage of GNP for future years,
data on GNP over the period 1972-1989 (in constant 1986 dollars) were linearly extrapolated to
years 1990-2000.
November 1990
-------
8-4
Environmental Investments
Although annualized costs have been and are projected to continue increasing, they are increa-
sing at a decreasing rate. As shown in Figure 8-4, the yearly rate of increase in total annualized
costs decreased from 14 percent between 1972 and 1973 to six to eight percent in the mid-1980s and
is projected to fall further to about three percent in the late 1990s (assuming full implementation).
8.1.3. Total Federally-Mandated Costs
Table 8-9 shows total annualized costs for the subset of environmental programs that are
Federally-mandated as follows:
1972
1987
1990
2000
(Assuming Full
Implementation)
Federally-Mandated Annualized Costs
(billions of 1986$)
18
67
81
137
Federally-Mandated Annualized Costs
(billions of 1990$)
21
77
93
158
As percent of GNP
0.9
1.9
2.1
2.4
If capital amortization rates of three and ten percent are used, the cost estimates for Federally-
mandated programs under the full implementation scenario range from S56-S76 billion in 1987,
$93-$125 billion in 1995, and $116-$155 billion in the year 2000.
8.1.4. Total Costs by Funding Source
Table 8-12 shows total annualized costs by funding source under the present implementation
scenario. The changes are highlighted in Figure 8-5, which shows the percentage allocations in
1972, 1980, 1987, and 2000. The data indicate that the share of total annualized costs incurred by
state and local governments fell during the 1970s at the expense of the Federal Government, which
was expanding its environmental involvement, while private sector costs remained relatively stable.
During the period 1980-87, there was remarkable stability in the cost shares. The future projections,
however, are for a rapid growth in the non-EPA Federal share with a corresponding reduction in all
other shares, particularly the private sector, over the period 1987-2000. The non-EPA Federal costs
are projected to increase more than 140 percent over the period, primarily due to proposed
Department of Defense and Department of Energy expenditures on military and nuclear waste clean-
up. Although the share of EPA costs is projected to fall somehat over the period, the overall
Federal share is projected to increase while that of state and local governments are projected to fall.
By the year 2000, it is estimated that the private sector will account for about 60 percent of total
costs, local governments more than 22 percent, non-EPA Federal agencies almost eight percent, the
EPA about seven percent, and state governments a little more than three percent.
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-5
8.1.5. Total Costs by Environmental Medium
Table 8-17 shows total annualized costs broken down by environmental medium, major EPA
program area, and by existing and new regulations. A line item is also included in the air and water
categories for "full implementation" costs, which for air represent the costs associated with
nationwide attainment of the NAAQS for ozone, and for water represent the costs of fulfilling the
nation's wastewater treatment needs.
The data on costs by environmental medium show that the relative shares of total costs in the
year 1975 were: approximately 30 percent for air and radiation, 41 percent for water, 27 percent for
land (including the costs associated with solid waste collection and disposal services), and less than
1 percent for chemicals. By 1980, the share of total costs accounted for by water programs had
increased to 43 percent, the share for land programs had decreased to 23 percent, and the shares for
other media had remained unchanged. These cost shares remained fairly constant over the period
1981-1988. The cost projections indicate that by the year 2000 the shares of total costs accounted
for by air and water programs will fall slightly to around 28 and 40 percent, respectively; the share
of land costs will rise to over 28 percent; and chemical regulation costs will increase to about 1.8
percent.
Figure 8-6 shows total annualized costs under the full implementation scenario as a percentage
of GNP, broken down by environmental medium. The figure shows that costs for land pollution
control have recently been increasing faster than those for any other environmental medium except
chemicals, and are expected to do so through the year 2000. A breakdown of land costs into their
four major components—solid waste, hazardous waste, underground storage tanks, and
Superfund—is shown in Figure 8-7.
By the year 2000, total annualized costs under the full implementation scenario would be
approximately $72 billion more than year 1988 costs, an increase of 80 percent. Roughly one-third
of this increase is due to the estimated increase in costs for land pollution control programs. As
existing RCRA and Superfund hazardous waste programs are more fully implemented, land costs
are estimated to increase by more than $17.4 billion over the period 1988-2000. Moreover, new and
forthcoming RCRA regulations are estimated to add another $8.4 billion in annual costs by the year
2000.
The air and water programs are also expected to impose significantly greater annual costs in the
year 2000 than those estimated for 1988, although not enough to prevent a slight fall in the total cost
shares accounted for by each medium. New regulatory programs directed towards the control of
air toxics and acid rain are projected to increase annual air costs by over $7 billion by the year 2000.
Also, the costs of fully implementing the Administration's strategy for attaining the existing NAAQS
for ozone, listed under the "full implementation" line item, would add $6.5 billion in annual costs
by the year 2000.
November 1990
-------
8-6
Environmental Investments
Annual costs for water programs are estimated to increase by approximately $15 billion over the
period 1988-2000. This increase is due largely to additional expenditures for pretreatment and
wastewater treatment, and new and forthcoming drinking water regulations. If the costs included
in the full implementation line item are added to the total, annual water costs would increase by an
additional $6 billion by the year 2000. These full implementation costs represent the expenditures
needed for wastewater treatment above what Federal, state, and local governments are projected to
spend for wastewater treatment over the period 1988-2000.
8.2. MAJOR SOURCES OF UNCERTAINTY
Considerable uncertainty surrounds the cost estimates presented in this report. Several possible
contributing factors are discussed in the sections indicated below. They are classified according to
whether they likely:
8.2.1. Bias the estimates in unknown directions;
8.2.2. Bias the estimates downward; or
8.2.3. Bias the estimates upward.
8.2.1. Factors Contributing toBias in Unknown Directions
8.2.1.1. Commerce Department Survey Data
Uncertainty is inherent in the Commerce Department survey data used as the basis for the
historical and projected future costs of existing regulations. Like all survey data, it is subject to
sampling errors as well as possible intentional or unintentional misinterpretation of the questions
or misrepresentation of the answers by respondents. Such sources of potential error could result in
either upward or downward biases, and are not well understood.
8.2.1.2. Cost Estimates for the Clean Air Act Amendments
The cost estimates for the Clean Air Act amendments now being considered by Congress are
particularly uncertain because they are based on EPA estimates for the Administration's proposed
bill. It is difficult to accurately estimate costs for such a complex bill; the estimates are thus highly
uncertain. Moreover, the provisions included in any final Clean Air Act amendments eventually
passed by Congress may differ substantially from the provisions included in the Administration's
bill.
8.2.1.3. Capital Amortization Rate
Another important factor influencing the point estimates for annualized costs is the amortization
rate used to annualized capital costs. There currently is no consensus regarding the appropriate rate
for amortizing pollution control capital costs. While the discussion of annualized costs focuses on
those derived using the seven percent rate, all of the cost tables in this report show estimates
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-7
calculated using three different rates: three, seven, and ten percent. This is done to show the
sensitivity of the cost estimates to other assumptions regarding the appropriate rate for amortizing
capital costs.
8.2.2. Factors Contributing to Downward Bias
8.2.2.1. Exclusion of Pre-1972 Capital Costs
This report did not include pre-1972 capital costs in the final cost estimates because such data
are available only for private sector water and stationary source air pollution control costs. It was
thought that inclusion of pre-1972 capital costs for these two categories and not for others would
produce uneven estimates across environmental media and economic sectors. In order to build a
consistent set of cost estimates, capital costs that were incurred prior to 1972 have been excluded
from the final estimates. This has the effect of reducing the annualized cost estimates over the first
half of the time period covered in this report.
Table 8-14 shows the size of this effect for private stationary source air and private water costs,
assuming capital lives of 20 and 30 years, respectively. The estimates are calculated using capital
cost data (shown in Table 8-13) and operating costs taken from the Commerce Department survey
data for years 1959 through 1988. One complication is that the 1959 capital cost data represents the
total pollution control capital stock as of that date. To assume that all pre-1960 capital investments
were made in 1959, as Table 8-14 does, overstates annualized costs in later years since much of the
1959 total was actually made in earlier years and presumably would be retired sooner than the
estimates show. Keeping this qualification in mind, lines 3 and 6 of Table 8-14 show the amount
that should be added to air and water costs to account for pre-1972 capital investments. Including
pre-1972 capital costs increases annualized costs for air and water programs by $2.2 and $1.8
billion, respectively, until the earliest capital is retired. Retirement of pre-1972 capital stock is
assumed to begin in 1979 for air capital, and in 1989 for water capital. After these years, the
additions to annualized costs due to inclusion of pre-1972 capital begins to fall annually.
8.2.2.2. Exclusion of Certain Costs
Although the cost estimate presented here are much more comprehensive than those included
in earlier reports in this series, there are a number of programs and regulations for which little or
no data are readily available, and are thus not included in this report. In general, the programs and
regulations excluded are relatively small and their omission probably results in only a negligible
downward bias in total costs. One example is the program directed to noise control. At the
regulation level, most new and forthcoming rules for which there are no Regulatory Impact
Analyses (RIAs) or similar reports are excluded. A partial list of excluded regulations can be found
at the end of each major section of Appendix A.
November 1990
-------
8-8
Environmental Investments
8.2.3. Factors Contributing to Upward Bias
8.2.3.1. Actual Costs Often Below Ex Ante Estimates
At least one study of ex ante estimates of costs for new and proposed environmental regulations
concludes that such studies have tended to over-estimate actual costs.4 One reason for this is that
ex ante estimates are often based on assumptions of "end-of-pipe" treatment rather than changes in
production processes; the latter are often a less costly means of achieving compliance. Also, cost
estimations usually assume full compliance in accordance with the current EPA plans for regulatory
development and promulgation; however, some regulated entities typically go out of business before
adopting controls or do not comply fully with regulatory requirements. If the historical tendency
to over-estimate regulatory costs applies to the data for new regulations obtained from the
Regulatory Impact Analyses (RIAs) used for this report, the cost estimates for new and forthcoming
regulations included here may over-estimate actual costs. On the other hand, both EPA and the
Office of Management and Budget have issued detailed guidelines for preparing RIAs in recent
years, and these may have resulted in a more consistent and careful preparation of cost estimates
than those studied earlier.
8.2.3.2. Cost Projections for Existing Programs
As explained in Section 1.3.2.1, costs associated with existing regulations are projected to the
year 2000 by linearly extrapolating recent trends in historical costs. In the case of those categories
for which costs in recent years have been increasing rapidly because of program changes, there is
a risk that linear extrapolations of costs may overestimate total costs when these projections are
added to the costs associated with new and forthcoming rules. Since air and water costs have been
relatively stable over the 1980s, this seems unlikely to be a major problem in these two media. This
is more of a potential problem in the case of land costs, given the passage of new legislation in this
area during the 1980s. Within the land category, the principal category of potential concern is the
hazardous waste program, for which costs went from zero in 1980 to over $1.4 billion in 1987.
Comparison of the cost projections made for hazardous waste with projections made for the much
older solid waste program suggests that hazardous waste expenditures for existing regulations are
predicted to increase no faster than those for solid waste, however. Despite this encouraging result,
there may be some small degree of upward bias in the cost estimates for hazardous waste regulation.
4 Putnam, Hayes and Bartlett, Inc., Comparisons of Estimated and Actual Pollution Control
Capital Expenditures for Selected Industries, Report for U.S. EPA Office of Planning and
Evaluation, June 1980.
November 1990
-------
Total Costs and Major Sources of Uncertainty °
Fig. 8-1: ENVIRONMENTAL CAPITAL INVESTMENT AS A PERCENTAGE OF TOTAL CAPITAL INVESTMENT
1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
B Present Implementation [§| Full Implementation
Source: Tables 8-1 and 8-4
November 1990
-------
8-10
Environmental Investments
Fig. 8-2: TOTAL ANNUALIZED COSTS BY TYPE OF REGULATION
200
150 -
(/)
h.
«
o
? 100
*—
o
<0
c
o
50 -
200
150
100
50
0
972 974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
Existing Regulations | New Regulations & Programs HI Full Implementation
Source: Table 8-17
November 1990
-------
Total Costs and Major Sources of Uncertainty
Fig. 8-3: TOTAL ANNUALIZED COSTS AS A PERCENTAGE OF GNP
8-11
3.0
2.5 -
2.0 -
Q.
z
CD
£ 1.5 -
©
©
Q.
1.0 -
0.5 -
0.0
3.0
2.5
2.0
1.5
1.0
0.5
0.0
1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992: 1994 1996 1998 2000
Present Implementation §1| Full Implementation
Source: Tables 8-3 and 8-6
November 1990
-------
8-12
Environmental Investments
Fig. 8-4: PERCENT CHANGE IN ANNUALIZED COSTS FROM PREVIOUS YEAR
ASSUMING FULL IMPLEMENTATION AND 7% INTEREST
a
1972 1974 1976 1978 1980 1982 984 1986 1988 1990 1992 1994 1996 1998 2000
% Change from Previous Year
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-13
Fig. 8-5: TOTAL ANNUALIZED COSTS BY FUNDING SOURCE
ASSUMING PRESENT IMPLEMENTATION AND 7% INTEREST
29.0%
0.3%
5.8%
3.7%
61.2%
1972 Annualized Costs
$26.5 billion
3.1%
22.5%
3.5%
7.9%
63.0%
3.3%
22.2%
3.8%
7.9%
62.8%
1980 Annualized Costs
$58.0 billion
7.9%
22.0%
3.0%
7.0%
~ EPA
I State
PI Local
Q Non-EPA Federal
Private
60.0%
1987 Annualized Costs
$85.3 billion
2000 Annualized Costs
$147.9 billion
Source: Tables 8-12 and 8-12A
November 1990
-------
8-14
Environmental Investments
Fig. 8-6: TOTAL ANNUALIZED COSTS BY MEDIUM AS A PERCENTAGE OF GNP
(Assuming Full Implementation)
1972 1974 1976 1978 1980 982 1984 1986 1988 1990 1992 1994 1996 1998 2000
1 Land
B Multi-Media Q Chemicals
Source: Tables 8-3 and 8-6
£2
Water
Air & Radiation
November 1990
-------
Total Costs and Maior Sources of Uncertainty
Fig. 8-7: TOTAL LAND COSTS AS A PERCENTAGE OF GNP
1.0
0.8 -
^ 0.6
CD
4—
o
CD
10.4
0.2
0.0
1972 1974 976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
Solid Waste
Hazardous Waste lU UST H! Superfund
Source: Table 5-3A
November 1990
-------
8-16 Environmental Investments
Table 8-1: TOTAL CAPITAL COSTS ASSUMING PRESENT IMPLEMENTATION
(millions of 1986 dollars)
Rpt
Sec
Media
1972
1973
1974
1975
1976
1977
1
978
1979
1980
1981
1982
1983
1984
1985
1986
3
A i r and Rad i at i on
3.1
Air
5,422
7,388
7,392
10,074
10,037
10,032
9
980
10,745
10,549
10,598
10,130
9,737
11,020
11,240
11,325
3.2
Rad i at i on
24
20
16
8
25
22
64
89
30
37
33
55
48
3.3
Total Ai r & Radi at
on 5,422
7,388
7,416
10,094
10,053
10,040
10
005
10,767
10,613
10,687
10,160
9,774
11,053
11,295
11 ,373
4
Water
4.1
Water Qua 1 i ty
12,721
12,761
13,151
13,730
14,058
15,605
14
895
15,090
15,020
13,211
12,666
12,345
12,043
12,023
12,666
4.2
Dri nking Water
736
772
868
91 7
895
814
825
979
1 ,081
1 ,060
1 ,016
935
915
1 ,073
1 ,251
4.3
Total Water
13,457
13,533
14,019
14,647
14,953
16,420
15
720
16,070
16,101
14,270
13,682
13,280
12,958
13,096
13,917
5
Land
5.1
Sol id Waste
1 ,345
1 ,530
1 ,670
1 ,552
1 ,575
1 ,671
1
699
1 ,863
1 ,906
1 ,900
1 , 700
1 ,591
1 ,848
1 ,912
2,115
5.2
Hazardous Waste
65
113
368
558
5.3
LUST
5.4
RCRA
1 ,345
1 ,530
1 ,670
1 ,552
1 ,575
1 ,671
1
699
1 ,863
1 ,906
1 ,900
1 , 700
1 ,656
1 ,961
2,280
2,672
5.5
Superfund
42
193
293
648
748
713
5.6
Total Land
1 ,345
1 ,530
1 ,670
1 ,552
1 ,575
1 ,671
1
699
1 ,863
1 ,906
1 ,942
1 ,893
1 ,949
2,609
3,028
3,385
6
Chem i ca1s
6.1
Tox i c Substances
2
48
83
27
1 7
59
31
136
153
162
6.2
Pest i c i des
6.3
Total Chemicals
2
48
83
27
1 7
59
31
136
153
162
7
Multi-Media
4
19
45
13
42
68
120
76
79
109
84
46
8
Total Costs
20,225
22,451
23,105
26,297
26,600
28,178
27
484
28,825
28,715
27,036
25,870
25,113
26,864
27,656
28,884
8.1
% of Total Capital
1 nv 2.5
2 . 7
3.1
3.4
3.2
3.0
2 . 7
2.9
3.1
2.9
2.8
2.4
2.3
2.2
2.3
Footnotes to Table 8-1
Total capital costs for implementing existing and new regulations for all media for the years 1972-1986. Estimates are taken from the corresponding program totals of the corresponding
capital tables (those ending in "-1") in each media chapter, starting with Table 3-1 and ending with Table 7-1.
% of Total Capital Inv.: Total capital expenditures for pollution control expressed as a percentage of total capital investment in this country. Total capital investment in this country is
defined as fixed private investment plus fixed government investment plus consumer investment in durable goods. Sources: Fixed private investment and consumer investment in durable
goods from Survey of Current Business, Department of Commerce, Bureau of Economic Analysis, September 1989. Fixed government investment from unpublished documents from
Department of Commerce, Bureau of Economic Analysis.
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-17
Table 8-1A: TOTAL CAPITAL COSTS ASSUMING PRESENT IMPLEMENTATION
(millions of 1986 dollars)
Rpt
Sec
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
3
A i r and Rad i at i on
3.1
Air
11 ,325
11,568
11,624
11 ,192
10,790
10,880
10,905
10,876
10,936
10,970
10,955
10,995
10,988
10,985
10,981
3.2
Rad i at i on
48
60
90
145
151
1 71
1 71
180
190
201
210
220
230
240
251
3.3
Total Ai r & Radi at
on 11,373
11,628
11 ,714
11 ,337
10,940
11,051
11,076
11,057
11 ,126
11 ,171
11 ,165
11 ,215
11 ,218
11,225
11,232
4
Water
4.1
Water Qua 1 i ty
12,666
13,132
11 ,543
11,264
11 ,169
10,716
10,282
9,623
9,112
8,631
8,584
8,537
8,491
8,444
8,397
4.2
Dri nking Water
,251
1 ,220
1 ,185
1 ,223
1 ,253
1 ,575
2,083
2,416
2,645
2,976
3,096
2,690
1 ,993
1 ,602
1 ,615
4.3
Total Water
13,917
14,352
12,728
12,487
12,422
12,291
12,366
12,039
11 ,756
11,607
11,680
11,227
10,483
10,046
10,012
5
Land
5.1
Sol id Waste
2,115
2,169
1 ,983
1 ,998
2,012
4,132
4,648
3,435
3,449
3,464
2,976
2,991
3,005
3,020
3,034
5.2
Hazardous Waste
558
502
1 , 772
2,449
2,929
2,345
4,002
3,952
4,529
4,081
4,222
4,731
4,092
4,154
4,215
5.3
LUST
5,250
5,250
6,097
5,250
5,250
456
456
456
456
11 ,755
100
100
5.4
RCRA
2,672
2,671
3,755
9,697
10,192
12,574
13,901
12,637
8,434
8,001
7,654
8,178
18,853
7,273
7,349
5.5
Superfund
713
1 ,462
1 ,898
2,781
2,855
3,568
4,895
5,500
5,869
6,187
6,266
6,502
6, 746
6,978
7,223
5.6
Total Land
3,385
4,133
5,653
12,478
13,047
16,142
18,796
18,137
14,303
14,188
13,920
14,680
25,599
14,251
14,572
6
Chem i ca1s
6.1
Tox i c Substances
162
156
158
973
978
984
990
165
82
87
93
99
104
110
116
6.2
Pest i c i des
6.3
Total Chemicals
162
156
158
973
978
984
990
165
82
87
93
99
104
110
116
7
Multi-Media
4
5 43 1,89
9 395 1,534
5
8
Total Costs
28,884
30,313
32,151
37,670
38,921
40,473
43,227
41 ,398
37,268
37,053
36,858
37,220
47,404
35,633
35,932
8.1
% of Total Capital
1 nv 2.3
2.3
2.8
2.9
2.8
2 . 7
2 . 7
2.1
2.1
2
2
2 . 7
1 .8
1 .8
1 . 7
Footnotes to Table 8-1A
Total capital costs for implementing existing and new regulations for all media for the years 1986-2000. Estimates are taken from the corresponding program totals of the corresponding
capital tables in each media chapter (Tables 3-1 A, 3-1B, 4-1, 5-1A, 5-1B, 6-1 A, and 7-1A).
% of Total Capital Inv.: Total capital expenditures for pollution control expressed as a percentage of total capital investment in this country. Total capital investment in this country is
defined as fixed private investment plus fixed government investment plus consumer investment in durable goods. Sources: Fixed private investment and consumer investment in durable
goods from Survey of Current Business, Department of Commerce, Bureau of Economic Analysis, September 1989. Fixed government investment from unpublished documents from
Department of Commerce, Bureau of Economic Analysis.
November 1990
-------
8-18 Environmental Investments
Table 8-2: TOTAL OPERATING COSTS ASSUMING PRESENT IMPLEMENTATION
(millions of 1986 dollars)
Rpt
Sec
Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
3
A i r and Rad i at i on
3.1
Air
7,392
8,332
7,957
7,871
8
,370
9,013
9,368
9,302
8,861
8,221
7,536
8,415
8,685
8,869
9,731
3.2
Rad i at i on
18
17
253
228
153
168
229
222
204
1 78
195
1 79
183
197
314
3.3
Total Air & Radiation
7,409
8,349
8,210
8,099
8
,523
9,180
9,597
9,524
9,065
8,399
7,731
8,594
8,868
9,066
10,045
4
Water
4.1
Water Qua 1 i ty
8,085
8,547
9,328
9,771
10
, 772
11,330
11,644
12,121
12,526
13,026
13,191
13,976
14,413
15,119
16,109
4.2
Dri nki ng Water
732
741
774
824
899
979
1 ,073
1 ,180
1 ,238
1 ,353
1 ,417
1 ,442
1 ,471
1 ,549
1 ,645
CO
Total Water
8,817
9,288
10,102
10,596
11
,672
12,309
12,717
13,301
13,764
14,379
14,608
15,419
15,884
16,668
17,753
5
Land
5.1
Sol id Waste
8,309
8,626
8,919
9,215
9
,665
10,448
10,878
11,763
12,213
12,356
11,260
10,947
11 ,830
12,344
13,254
5.2
Hazardous Waste
182
147
677
828
958
1 ,306
5.3
LUST
5.4
RCRA
8,309
8,626
8,919
9,215
9
,665
10,448
10,878
11,763
12,213
12,538
11,407
11,624
12,658
13,301
14,561
5.5
Superfund
12
40
69
140
157
191
5.6
Total Land
8,309
8,626
8,919
9,215
9
,665
10,448
10,878
11,763
12,213
12,550
11,447
11,693
12,798
13,458
14,752
6
Chem i ca1s
6.1
Tox i c Substances
9
5
9
47
154
332
414
350
293
212
207
251
335
6.2
Pest i c i des
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
6.3
Total Chemicals
92
143
183
181
349
408
578
840
874
774
690
585
647
721
754
7
Multi-Media
108
139
461
587
726
913
896
875
850
665
570
648
603
625
851
8
Total Costs
24,735
26,545
27,876
28,678
30
,936
33,258
34,666
36,303
36,767
36,768
35,046
36,939
38,800
40,538
44,155
Footnotes to Table 8-2
Total operating costs for implementing existing and new regulations for all media for the years 1972-1986. Estimates are taken from the corresponding program totals of the corresponding
operating cost tables (those ending in "-2") in each media chapter, starting with Table 3-2 and ending with Table 7-2.
November 1990
-------
Total Costs and Major Sources of Uncertainty
Table 8-2A: TOTAL OPERATING COSTS ASSUMING PRESENT IMPLEMENTATION
(millions of 1986 dollars)
8-19
Rpt
Sec
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
3
A i r and Rad i at i on
3.1
Air
9,731
10,427
10,083
9,916
8,823
9,480
9,863
10,287
10,772
12,408
13,923
15,134
16,449
17,410
18,832
3.2
Rad i at i on
314
281
300
330
362
389
41 7
445
473
502
530
558
587
615
644
3.3
Total Air & Radiation
10,045
10,708
10,383
10,246
9,185
9,869
10,280
10,732
11,245
12,910
14,453
15,692
17,035
18,025
19,476
4
Water
4.1
Water Qua 1 i ty
16,109
17,085
16,975
17,674
18,432
19,237
19,747
20,334
20,888
21 ,442
21 ,996
22,550
23,104
23,658
24,212
4.2
Dri nki ng Water
1 ,645
1 ,661
1 ,689
1 , 738
1 , 792
1 ,982
2,248
2,360
2,523
2,761
2,888
2,976
3,181
3,349
3,379
CO
Total Water
17,753
18,746
18,664
19,412
20,224
21 ,219
21,995
22,694
23,411
24,203
24,884
25,526
26,285
27,007
27,591
5
Land
5.1
Sol id Waste
13,254
14,035
13,463
13,738
14,012
14,482
14,832
15,227
15,622
15,895
16,169
16,442
16,716
16,989
17,263
5.2
Hazardous Waste
1 ,306
1 ,574
2,758
3,043
3,576
4,780
5,790
6,077
6,390
6,599
6,386
6,676
6,940
7,203
7,430
5.3
LUST
1
13
888
2,368
2,379
2,416
2,427
1 ,066
662
672
683
694
387
397
5.4
RCRA
14,561
15 ,610
16,234
17,668
19,956
21,640
23,038
23,731
23,077
23,156
23,227
23,801
24,349
24,580
25,090
5.5
Superfund
191
353
447
641
767
899
1 ,197
1 ,376
1 ,514
1 ,656
1 , 757
1 ,895
2,038
2,186
2,342
5.6
Total Land
14,752
15,963
16,681
18,309
20,723
22,539
24,235
25,107
24,591
24,812
24,984
25,696
26,387
26,766
27,432
6 Chemicals
6.1
Tox i c Substances
335
283
358
369
318
425
492
608
613
619
666
674
683
692
700
6.2
Pest i c i des
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
6.3
Total Chemicals
754
736
813
1 ,066
1 ,297
1 ,510
1 ,662
1 ,865
1 ,917
1 ,972
2,072
2,140
2,199
2,273
2,358
7
Multi-Media
851
772
930
1 ,196
1 ,172
1 ,563
1 ,557
1 ,594
1 ,632
1 ,670
1 , 708
1 , 751
1 , 795
1 ,839
1 ,883
8
Total Costs
44,155 <
16,925
47,470
50,228
52,601
56,701
59,729
61 ,992
62,797
65,567
68,101
70,805
73,701
75,911
78,740
Footnotes to Table 8-2A
Total operating costs for implementing existing and new regulations for all media for the years 1986-2000. Estimates are taken from the corresponding program totals of the corresponding
operating cost tables in each media chapter (Tables 3-2A, 3-2B, 4-2A, 5-2A, 5-2B, 6-2A, and 7-2A).
November 1990
-------
8-20 Environmental Investments
Table 8-3: TOTAL COSTS ASSUMING PRESENT IMPLEMENTATION ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Sec
Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
3
A i r and Rad i at i on
3.1
Air
7,916
9,581
9,927
10,925
12,528
14,287
15,761
16,902
17,635
18,196
18,624
20,573
22,109
23,279
25,077
3.2
Rad i at i on
18
17
255
232
158
1 73
237
232
219
201
220
207
215
233
355
3.3
Total Air & Radiation
7,934
9,598
10,182
11 ,156
12,686
14,460
15,998
17,134
17,854
18,397
18,844
20,780
22,324
23,513
25,431
4
Water
4.1
Water Qua 1 i ty
9,110
10,600
12,441
13,991
16,125
17,940
19,455
21 ,147
22,763
24,328
25,514
27,294
28,700
30,376
32,386
4.2
Dri nki ng Water
802
883
998
1 ,135
1 ,294
1 ,451
1 ,623
1 ,823
1 ,982
2,198
2,357
2,471
2,586
2,765
2,979
CO
Total Water
9,912
11 ,484
13,439
15,126
17,419
19,391
21,078
22,970
24,745
26,525
27,871
29,765
31,286
33,141
35,365
5
Land
5.1
Sol id Waste
8,436
8,898
9,348
9,790
10,389
11,330
11,920
12,981
13,612
13,934
12,998
12,835
13,892
14,587
15,697
5.2
Hazardous Waste
182
147
683
845
1 ,009
1 ,410
5.3
LUST
5.4
RCRA
8,436
8,898
9,348
9,790
10,389
11,330
11,920
12,981
13,612
14,116
13,145
13,518
14,737
15,596
17,107
5.5
Superfund
15
59
112
235
312
404
5.6
Total Land
8,436
8,898
9,348
9,790
10,389
11 ,330
11 ,920
12,981
13,612
14,131
13,204
13,630
14,972
15,908
17,511
6 Chemicals
6.1
Tox i c Substances
9
5
9
47
158
345
429
367
315
237
245
303
402
6.2
Pest i c i des
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
6.3
Total Chemicals
92
143
183
181
349
408
583
853
889
791
712
610
685
773
822
7
Multi-Media
108
139
461
587
729
919
903
886
868
695
606
692
657
687
918
8
Total Costs
26,481
30,261
33,614
36,842
41,572
46,509
50,482
54,824
57,969
60,539
61 ,237
65,477
69,925
74,021
80,046
8.1
Percentage of GNP
0.88
0.96
1 .07
1.19
1 .28
1 .37
1 .41
1 .49
1 .58
1 .62
1 .68
1 . 74
1 . 74
1 . 78
1 .87
Footnotes to Table 8-3
Total operating costs for implementing existing and new regulations for all media for the years 1972-1986. Estimates are taken from the corresponding program totals of the corresponding
seven percent annualized cost tables (those ending in "-3") in each section, starting with Table 3-3 and ending with Table 7-3.
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-21
Table 8-3A: TOTAL COSTS ASSUMING PRESENT IMPLEMENTATION ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Sec Media 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
3 Air and Rad i at i on
3.1 Air 25,077 26,679 27,238 27,872 27,588 29,005 29,692 30,160 30,507 31,904 33,200 34,265 35,424 36,237 37,495
3.2 Radiation 355 327 353 396 441 483 525 568 613 659 705 752 800 847 896
3.3 Total Air & Radiation 25,431 27,006 27,591 28,267 28,029 29,488 30,217 30,728 31,120 32,562 33,905 35,017 36,224 37,085 38,390
4 Water
4.1 Water Quality 32,386 34,421 35,241 36,847 38,506 40,174 41,513 42,875 44,164 45,413 46,659 47,901 49,139 50,374 51,605
4.2 Dri nking Water 2,979 3,111 3,250 3,415 3,587 3,926 4,319 4,586 4,91 7 5,350 5,684 5,949 6,264 6,491 6,571
4.3 Total Water 35,365 37,531 38,491 40,262 42,092 44,100 45,831 47,461 49,080 50,763 52,343 53,850 55,403 56,865 58,176
5
Land
5
Sol id Waste
15,697
16
,683
16,298
16,761
17,226
18,085
18,747
19,322
19,884
20,338
20,744
21 ,142
21 ,539
21 ,922
22,302
5
2
Hazardous Waste
1 ,410
1
,725
3,077
3,593
4,402
5,827
7,216
7,875
8,616
9,210
9,396
10,133
10,782
11 ,438
12,062
5
3
LUST
1
13
1 ,311
3,215
3,716
4,177
4,611
3,286
2,920
2,966
3,014
3,972
3,673
3,691
5
4
RCRA
1 7,107
18
,409
19,388
21,664
24,842
27,629
30,139
31,808
31 , 787
32,468
33,106
34,289
36,293
37,033
38,055
5
5
Superfund
404
683
930
1 ,348
1 , 704
2,124
2,816
3,439
4,050
4,690
5,296
5,958
6,645
7,355
8,093
5
6
Total Land
17,511
19
,092
20,318
23,013
26,547
29,753
32,956
35,247
35,836
37,158
38,402
40,247
42,938
44,388
46,148
6 Chemicals
6.1 Tox i c Substances
6.2 Pest i c i des
6.3 TotaI Chem i caIs
7 Multi-Media
8 Total Costs
8.1 Percentage of GNP
402
365
456
558
600
799
960
1 ,091
1 ,104
1,119
1 ,174
1 ,192
1 ,206
1 ,217
1 ,234
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
822
819
910
1 ,255
1 ,579
1 ,885
2,130
2,348
2,408
2,472
2,580
2,657
2,721
2,799
2,892
918
842
1 ,180
1 ,483
1 ,603
1 ,995
1 ,989
2,027
2,065
2,102
2,138
2,177
2,220
2,260
2,298
046
85,290
88,490
94,280
99,850
107,221
113,123
117,811
120,510
125,056
129,368
133,948
139,507
143,396
147,904
.87
1 .92
1 .91
1 .98
2.13
2.24
2.32
2.37
2.37
2.42
2.45
2.49
2.55
2.58
2.61
Footnotes to Table 8-3A
Total operating costs for implementing existing and new regulations for all media for the years 1986-2000. Estimates are taken from the corresponding program totals of the corresponding
seven percent annualized cost tables in each media chapter (Tables 3-3A, 3-3B, 4-3A, 5-3A, 5-3B, 6-3A, and 7-3A).
November 1990
-------
8-22 Environmental Investments
Table 8-3B: TOTAL COSTS ASSUMING PRESENT IMPLEMENTATION ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Sec
Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
3
A i r and Rad i at i on
3.1
Air
7,769
9,235
9,380
10,110
11,447
12,941
14,151
15,008
15,462
15,744
15,911
17,619
18,881
19,828
21 ,414
3.2
Rad i at i on
18
17
255
231
156
1 71
234
229
214
193
212
198
204
221
341
3.3
Total Air & Radiation
7, 787
9,251
9,635
10,341
11,603
13,112
14,386
15,237
15,676
15,937
16,123
17,817
19,085
20,050
21,755
4
Water
4.1
Water Qua 1 i ty
8, 734
9,847
11 ,299
12,443
14,161
15,515
16,589
17,835
19,007
20,181
20,993
22,408
23,458
24,778
26,414
4.2
Dri nki ng Water
782
842
933
1 ,046
1 ,181
1 ,315
1 ,465
1 ,638
1 , 768
1 ,955
2,087
2,175
2,265
2,415
2,595
CO
Total Water
9,516
10,689
12,233
13,489
15,342
16,830
18,054
19,473
20,775
22,136
23,079
24,582
25,723
27,193
29,009
5
Land
5.1
Sol id Waste
8,399
8,820
9,225
9,625
10,181
11,076
11,620
12,630
13,209
13,480
12,498
12,292
13,298
13,941
14,994
5.2
Hazardous Waste
182
147
681
840
994
1 ,380
5.3
LUST
5.4
RCRA
8,399
8,820
9,225
9,625
10,181
11,076
11,620
12,630
13,209
13,662
12,645
12,973
14,139
14,935
16,374
5.5
Superfund
14
52
96
200
255
326
5.6
Total Land
8,399
8,820
9,225
9,625
10,181
11,076
11,620
12,630
13,209
13,676
12,697
13,069
14,339
15,190
16,700
6
Chem i ca1s
6.1
Tox i c Substances
9
5
9
47
157
341
425
362
309
229
234
288
383
6.2
Pest i c i des
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
6.3
Total Chemicals
92
143
183
181
349
408
581
849
885
786
705
603
674
758
802
7
Multi-Media
108
139
461
587
728
91 7
901
883
863
686
596
679
642
669
898
8
Total Costs
25,901
29,042
31 , 737
34,222
38,203
42,344
45,542
49,072
51,408
53,221
53,200
56,751
60,462
63,860
69,164
8.1
Percentage of GNP
0.86
0.92
1 .01
1 .10
1 .17
1 .24
1 .27
1 .34
1 .40
1 .42
1 .46
1 .50
1 .50
1 .53
1 .62
Footnotes to Table 8-3B
Total annualized costs for implementing existing and new regulations for all media for the years 1972-1986. Estimates are taken from the corresponding program totals of the
corresponding three percent annualized cost tables in each media chapter (Tables 3-3C, 4-3B, 5-3C, 6-3B, and 7-3B).
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-23
Table 8-3C: TOTAL COSTS ASSUMING PRESENT IMPLEMENTATION ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Sec Media 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
3 Air and Rad i at i on
3.1 Air 21,414 22,804 23,154 23,598 23,128 24,369 25,016 25,509 25,916 27,396 28,767 29,892 31,113 31,993 33,322
3.2 Radiation 341 312 335 374 415 452 489 528 567 607 647 688 730 770 812
3.3 Total Air & Radiation 21,755 23,116 23,490 23,972 23,543 24,821 25,505 26,036 26,483 28,002 29,414 30,580 31,843 32,764 34,134
4 Water
4.1 Water Quality 26,414 28,060 28,539 29,812 31,141 32,492 33,527 34,605 35,624 36,618 37,610 38,600 39,587 40,572 41,554
4.2 Drinking Water 2,595 2,693 2,801 2,932 3,070 3,367 3,723 3,945 4,228 4,604 4,879 5,093 5,376 5,586 5,652
4.3 Total Water 29,009 30,754 31,340 32,745 34,211 35,858 37,249 38,550 39,851 41,222 42,489 43,693 44,963 46,158 47,206
5
Land
5
Sol id Waste
14,994
15,920
15,482
15,890
16,300
17,048
17,619
18,143
18,657
19,059
19,427
19,789
20,150
20,502
20,851
5
2
Hazardous Waste
1 ,380
1 ,681
2,985
3,435
4,164
5,526
6,805
7,358
7,975
8,458
8,529
9,138
9,676
10,219
10,728
5
3
LUST
1
13
1 ,155
2,904
3,226
3,531
3,809
2,471
2,091
2,124
2,158
2,769
2,468
2,483
5
4
RCRA
16,374
17,603
18,480
20,480
23,369
25,799
27,956
29,310
29,104
29,609
30,080
31,085
32,595
33,188
34,062
5
5
Superfund
326
562
753
1 ,089
1 ,361
1 ,675
2,222
2,682
3,119
3,577
3,998
4,467
4,955
5,459
5,983
5
6
Total Land
16,700
18,165
19,233
21,569
24,729
27,474
30,178
31 ,992
32,223
33,186
34,078
35,552
37,550
38,647
40,045
6 Chemicals
6.1 Tox i c Substances
6.2 Pest i c i des
6.3 TotaI Chem i caIs
7 Multi-Media
8 Total Costs
8.1 Percentage of GNP
383
341
428
504
519
691
825
952
962
975
1 ,028
1 ,043
1 ,055
1 ,066
1 ,080
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
802
795
882
1 ,200
1 ,498
1 , 777
1 ,995
2,209
2,267
2,328
2,434
2,508
2,571
2,647
2,738
898
822
1 ,108
1 ,400
1 ,479
1 ,871
1 ,865
1 ,902
1 ,940
1 ,978
2,014
2,055
2,098
2,139
2,178
164
73,652
76,052
80,887
85,459
91,801
96,792 1(
DO,690
102,764 1(
D6.716
110,430
114,388
119,025
122,355
126,302
.62
1 .66
1 .64
1 . 70
1 .83
1 .92
1 .98
2 .02
2 .02
2 .06
2 .09
2.13
2.18
2.20
2.23
Footnotes to Table 8-3C
Total annualized costs for implementing existing and new regulations for all media for the years 1986-2000. Estimates are taken from the corresponding program totals of the
corresponding three percent annualized cost tables in each media chapter (Tables 3-3D, 3-3E, 4-3C, 5-3D, 5-3E, 6-3C, and 7-3C).
November 1990
-------
8-24 Environmental Investments
Table 8-3D: TOTAL COSTS ASSUMING PRESENT IMPLEMENTATION ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Sec
Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
3
A i r and Rad i at i on
3.1
Air
8,041
9,874
10,389
11 ,612
13,438
15,419
17,113
18,491
19,457
20,252
20,897
23,046
24,811
26,165
28,139
3.2
Rad i at i on
18
17
256
233
159
1 75
239
235
223
207
228
216
224
244
366
3.3
Total Air & Radiation
8,058
9,891
10,645
11,845
13,597
15,594
17,353
18,726
19,681
20,459
21 ,124
23,261
25,034
26,409
28,505
4
Water
4.1
Water Qua 1 i ty
9,434
11 ,250
13,426
15,326
17,818
20,031
21 ,926
24,003
26,001
27,903
29,412
31,506
33,220
35,202
37,535
4.2
Dri nki ng Water
819
918
1 ,053
1 ,211
1 ,391
1 ,567
1 , 758
1 ,980
2,164
2,404
2,587
2,722
2,858
3,062
3,305
CO
Total Water
10,253
12,168
14,479
16,537
19,209
21,598
23,683
25,983
28,165
30,307
31 ,999
34,229
36,079
38,264
40,840
5
Land
5.1
Sol id Waste
8,467
8,964
9,453
9,931
10,566
11 ,546
12,175
13,278
13,953
14,319
13,423
13,297
14,396
15,135
16,294
5.2
Hazardous Waste
182
147
684
849
1 ,022
1 ,436
5.3
LUST
5.4
RCRA
8,467
8,964
9,453
9,931
10,566
11 ,546
12,175
13,278
13,953
14,502
13,570
13,981
15,246
16,156
17,730
5.5
Superfund
16
65
125
265
361
471
5.6
Total Land
8,467
8,964
9,453
9,931
10,566
11,546
12,175
13,278
13,953
14,518
13,635
14,106
15,510
16,518
18,200
6
Chem i ca1s
6.1
Tox i c Substances
9
5
9
47
159
348
433
371
321
243
254
316
419
6.2
Pest i c i des
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
6.3
Total Chemicals
92
143
183
181
349
408
584
856
893
795
71 7
616
694
786
838
7
Multi-Media
108
139
461
587
729
921
905
889
873
702
615
702
671
702
934
8
Total Costs
26,978
31,305
35,222
39,082
44,451
50,067
54,699
59,732
63,566
66,781
68,091
72,916
77,988
82,679
89,318
8.1
Percentage of GNP
0.90
0.99
1.12
1 .26
1 .37
1 .47
1 .53
1 .63
1 . 73
1 . 79
1 .87
1 .93
1 .94
1 .99
2 .09
Footnotes to Table 8-3D
Total annualized costs for implementing existing and new regulations for all media for the years 1972-1986. Estimates are taken from the corresponding program totals of the
corresponding ten percent annualized cost tables in each media chapter (Tables 3-3F, 4-3D, 5-3F, 6-3D, and 7-3D).
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-25
Table 8-3E: TOTAL COSTS ASSUMING PRESENT IMPLEMENTATION AT ANNUALIZED 10 PERCENT
(millions of 1986 dollars)
Rpt
Sec Media 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
3 Air and Rad i at i on
3.1 Air 28,139 29,918 30,651 31,444 31,315 32,880 33,598 34,041 34,337 35,662 36,894 37,905 39,011 39,767 40,962
3.2 Radiation 366 340 368 414 463 509 555 603 653 703 755 807 861 913 967
3.3 Total Air & Radiation 28,505 30,258 31,019 31,858 31,778 33,389 34,153 34,645 34,989 36,365 37,648 38,712 39,872 40,680 41,929
4 Water
4.1 Water Quality 37,535 39,905 41,019 42,912 44,856 46,797 48,398 50,006 51,527 52,996 54,461 55,920 57,375 58,825 60,270
4.2 Dri nking Water 3,305 3,465 3,632 3,825 4,025 4,401 4,825 5,130 5,502 5,982 6,367 6,676 7,01 7 7,259 7,351
4.3 Total Water 40,840 43,370 44,651 46,737 48,881 51,198 53,223 55,136 57,028 58,978 60,828 62,596 64,393 66,084 67,621
5
Land
5
Sol id Waste
16,294
17,330
16,991
17,500
18,011
18,966
19,703
20,322
20,926
21 ,424
21,862
22,291
22,718
23,127
23,533
5
2
Hazardous Waste
1 ,436
1 ,762
3,155
3,727
4,604
6,083
7,564
8,315
9,160
9,848
10,131
10,977
11,721
12,473
13,194
5
3
LUST
1
13
1 ,444
3,482
4,140
4,734
5,301
3,988
3,634
3,692
3,751
5,008
4,713
4,733
5
4
RCRA
17,730
19,093
20,159
22,671
26,097
29,189
32,001
33,939
34,075
34,906
35,685
37,019
39,448
40,313
41 ,461
5
5
Superfund
471
788
1 ,083
1 ,572
2,001
2,512
3,329
4,091
4,852
5,650
6,416
7,244
8,102
8,990
9,913
5
6
Total Land
18,200
19,881
21 ,242
24,244
28,098
31 700
35,330
38,030
38,927
40,556
42,101
44,263
47,550
49,303
51,373
6
Chem i ca1s
6
Tox i c Substances
419
385
480
605
669
891
1 ,074
1 ,209
1 ,224
1 ,241
1 ,298
1 ,318
1 ,333
1 ,345
1 ,364
6
2
Pest i c i des
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
6
3
Total Chemicals
838
839
934
1 ,301
1 ,648
1 ,976
2,244
2,466
2,528
2,594
2,705
2,783
2,849
2,927
3,022
7
Multi-Media
934
860
1 ,241
1 ,553
1 709
2,101
2,095
2,133
2,170
2,208
2,243
2,282
2,324
2,363
2,399
8
Total Costs
89,318
95,206
99,086
105,693
112,114
120,364
127,045
132,410
135,643
140,700
145,525
150,636
156,988
161 ,357
166,345
8.1 Percentage of GNP 2.09 2.15
Footnotes to Table 8-3E
Total annualized costs for implementing existing and new regulations for all media for the years 1986-2000. Estimates are taken from the corresponding program totals of the
corresponding ten percent annualized cost tables in each media chapter (Tables 3-3G, 3-3H, 4-3E, 5-3G, 5-3H, 6-3E, and 7-3E).
November 1990
-------
8-26 Environmental Investments
Table 8-4: TOTAL CAPITAL COSTS ASSUMING FULL IMPLEMENTATION
(millions of 1986 dollars)
Rpt
Sec
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
3
A i r and Rad i at i on
3.1
Air
11 ,325
11,568
11,624
11 ,192
10,790
10,880
10,905
10,876
10,936
10,970
10,955
10,995
10,988
10,985
10,981
3.2
Rad i at i on
48
60
90
145
151
1 71
1 71
180
190
201
210
220
230
240
251
3.3
Total Air & Radi at
on 11,373
11,628
11 ,714
11 ,337
10,940
11,051
11,076
11,057
11 ,126
11 ,171
11 ,165
11 ,215
11 ,218
11,225
11,232
4
Water
4.1
Water Qua 1 i ty
12,666
13,132
11 ,543
11,264
12,926
12,539
12,563
12,374
12,301
12,228
12,155
12,082
12,009
11 ,937
11,864
4.2
Dri nki ng Water
,251
1 ,220
1 ,185
1 ,223
1 ,253
1 ,575
2,083
2,416
2,645
2,976
3,096
2,690
1 ,993
1 ,602
1 ,615
4.3
Total Water
13,917
14,352
12,728
12,487
14,179
14,113
14,646
14,790
14,946
15,204
15,251
14,772
14,002
13,539
13,479
5
Land
5.1
Sol id Waste
2,115
2,169
1 ,983
1 ,998
2,012
4,132
4,648
3,435
3,449
3,464
2,976
2,991
3,005
3,020
3,034
5.2
Hazardous Waste
558
502
1 , 772
2,449
2,929
2,345
4,002
3,952
4,529
4,081
4,222
4,731
4,092
4,154
4,215
5.3
LUST
5,250
5,250
6,097
5,250
5,250
456
456
456
456
11 ,755
100
100
5.4
RCRA
2,672
2,671
3,755
9,697
10,192
12,574
13,901
12,637
8,434
8,001
7,654
8,178
18,853
7,273
7,349
5.5
Superfund
713
1 ,462
1 ,898
2,781
2,855
3,568
4,895
5,500
5,869
6,187
6,266
6,502
6, 746
6,978
7,223
5.6
Total Land
3,385
4,133
5,653
12,478
13,047
16,142
18,796
18,137
14,303
14,188
13,920
14,680
25,599
14,251
14,572
6
Chem i ca1s
6.1
Tox i c Substances
162
156
158
973
978
984
990
165
82
87
93
99
104
110
116
6.2
Pest i c i des
6.3
Total Chemicals
162
156
158
973
978
984
990
165
82
87
93
99
104
110
116
7
Multi-Media
4
3 43 1,89
9 395 1,534
5
8
Total Costs
28,884
30,313
32,151
37,670
40,678
42,295
45,507
44,150
40,457
40,650
40,429
40,765
50,923
39,126
39,398
8.1
% of Total Capital
1 nv 2.3
2.3
2.8
2.9
2.9
2.9
2.9
2.3
2.3
2.3
2.2
2.9
2.0
2.0
1 .9
Footnotes to Table 8-4
Total capital costs for implementing existing and new regulations for all media for the years 1986-2000. Table includes costs incurred to achieve full implementation of existing regulations
and are taken from the corresponding capital cost tables (those ending in "-1A or "-1B") in each prior section, starting with Table 3-1A and ending with Table 7-1 A.
% of Total Capital Inv.: Total capital expenditures for pollution control expressed as a percentage of total capital investment in this country. Total capital investment in this country is
defined as fixed private investment plus fixed government investment plus consumer investment in durable goods. Sources: Fixed private investment and consumer investment in durable
goods from Survey of Current Business, Department of Commerce, Bureau of Economic Analysis, September 1989. Fixed government investment from unpublished documents from
Department of Commerce, Bureau of Economic Analysis.
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-27
Table 8-5: TOTAL OPERATING COSTS ASSUMING FULL IMPLEMENTATION
(millions of 1986 dollars)
Rpt
Sec
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
3
A i r and Rad i at i on
3.1
Air
9,731
10,427
10,083
9,916
8,823
9,480
9,863
14,655
15,170
16,997
18,935
20,568
22,303
23,686
25,386
3.2
Rad i at i on
314
281
300
330
362
389
41 7
445
473
502
530
558
587
615
644
3.3
Total Air & Radiation
10,045
10,708
10,383
10,246
9,185
9,869
10,280
15,100
15,643
17,499
19,465
21 ,126
22,889
24,301
26,030
4
Water
4.1
Water Qua 1 i ty
16,109
17,085
16,975
17,674
18,608
19,595
20,333
21 ,195
22,068
22,982
23,893
24,802
25,708
26,611
27,512
4.2
Dri nki ng Water
1 ,645
1 ,661
1 ,689
1 , 738
1 , 792
1 ,982
2,248
2,360
2,523
2,761
2,888
2,976
3,181
3,349
3,379
CO
Total Water
17,753
18,746
18,664
19,412
20,399
21,577
22,581
23,555
24,591
25,743
26,781
27,778
28,888
29,960
30,890
5
Land
5.1
Sol id Waste
13,254
14,035
13,463
13,738
14,012
14,482
14,832
15,227
15,622
15,895
16,169
16,442
16,716
16,989
17,263
5.2
Hazardous Waste
1 ,306
1 ,574
2,758
3,043
3,576
4,780
5,790
6,077
6,390
6,599
6,386
6,676
6,940
7,203
7,430
5.3
LUST
1
13
888
2,368
2,379
2,416
2,427
1 ,066
662
672
683
694
387
397
5.4
RCRA
14,561
15 ,610
16,234
17,668
19,956
21,640
23,038
23,731
23,077
23,156
23,227
23,801
24,349
24,580
25,090
5.5
Superfund
191
353
447
641
767
899
1 ,197
1 ,376
1 ,514
1 ,656
1 , 757
1 ,895
2,038
2,186
2,342
5.6
Total Land
14,752
15,963
16,681
18,309
20,723
22,539
24,235
25,107
24,591
24,812
24,984
25,696
26,387
26,766
27,432
6
Chem i ca1s
6.1
Tox i c Substances
335
283
358
369
318
425
492
608
613
619
666
674
683
692
700
6.2
Pest i c i des
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
6.3
Total Chemicals
754
736
813
1 ,066
1 ,297
1 ,510
1 ,662
1 ,865
1 ,917
1 ,972
2,072
2,140
2,199
2,273
2,358
7
Multi-Media
851
772
930
1 ,196
1 ,172
1 ,563
1 ,557
1 ,594
1 ,632
1 ,670
1 , 708
1 , 751
1 , 795
1 ,839
1 ,883
8
Total Costs
44,155
46,925
47,470
50,228
52,777
57,059
60,315
67,222
68,375
71,696
75,010
78,491
82,159
85,140
88,593
Footnotes to Table 8-5
Total operating costs for implementing existing and new regulations for all media for the years 1986-2000. Table includes costs incurred to achieve full implementation of existing
regulations and are taken from the corresponding program totals of the corresponding operating cost tables (those ending in "-2A" and "-2B") in each section, starting with Table 3-2A
and ending with Table 7-2A.
November 1990
-------
8-28 Environmental Investments
Table 8-6: TOTAL COSTS ASSUMING FULL IMPLEMENTATION ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Sec
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
3
A i r and Rad i at i on
3.1
Air
25,077
26,679
27,238
27,872
27,588
29,005
29,692
34,528
34,905
36,493
38,212
39,699
41,278
42,513
44,049
3.2
Rad i at i on
355
327
353
396
441
483
525
568
613
659
705
752
800
847
896
3.3
Total Air & Radiation
25,431
27,006
27,591
28,267
28,029
29,488
30,217
35,096
35,518
37,151
38,917
40,451
42,078
43,361
44,944
4
Water
4.1
Water Qua 1 i ty
32,386
34,421
35,241
36,847
38,823
40,820
42,571
44,430
46,295
48,194
50,085
51,967
53,840
55,706
57,563
4.2
Dri nki ng Water
2,979
3,111
3,250
3,415
3,587
3,926
4,319
4,586
4,917
5,350
5,684
5,949
6,264
6,491
6,571
CO
Total Water
35,365
37,531
38,491
40,262
42,410
44,746
46,890
49,017
51 ,212
53,543
55,769
57,916
60,104
62,197
64,134
5
Land
5.1
Sol id Waste
15,697
16,683
16,298
16,761
17,226
18,085
18,747
19,322
19,884
20,338
20,744
21 ,142
21,539
21 ,922
22,302
5.2
Hazardous Waste
1 ,410
1 ,725
3,077
3,593
4,402
5,827
7,216
7,875
8,616
9,210
9,396
10,133
10,782
11,438
12,062
5.3
LUST
1
13
1 ,311
3,215
3,716
4,177
4,611
3,286
2,920
2,966
3,014
3,972
3,673
3,691
5.4
RCRA
1 7,107
18,409
19,388
21,664
24,842
27,629
30,139
31,808
31 787
32,468
33,106
34,289
36,293
37,033
38,055
5.5
Superfund
404
683
930
1 ,348
1 704
2,124
2,816
3,439
4,050
4,690
5,296
5,958
6,645
7,355
8,093
5.6
Total Land
17,511
19,092
20,318
23,013
26,547
29,753
32,956
35,247
35,836
37,158
38,402
40,247
42,938
44,388
46,148
6
Chem i ca1s
6.1
Tox i c Substances
402
365
456
558
600
799
960
1 ,091
1 ,104
1,119
1 ,174
1 ,192
1 ,206
1 ,217
1 ,234
6.2
Pest i c i des
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
6.3
Total Chemicals
822
819
910
1 ,255
1 ,579
1 ,885
2,130
2,348
2,408
2,472
2,580
2,657
2,721
2,799
2,892
7
Multi-Media
918
842
1 ,180
1 ,483
1 ,603
1 ,995
1 ,989
2,027
2,065
2,102
2,138
2,177
2,220
2,260
2,298
8
Total Costs
80,046
85,290
88,490
94,280
100,167
107,867
114,181
123,735
127,039
132,426
137,806
143,447
150,062
155,004
160,416
8.1
Percentage of GNP
1 .87
1 .92
1 .91
1 .98
2.14
2.26
2.34
2.49
2.50
2.56
2.61
2.67
2 . 74
2 . 78
2.83
Footnotes to Table 8-6
Total annualized costs for implementing existing and new regulations for all media for the years 1986-2000. Table includes costs incurred to achieve full implementation of existing
regulations and are taken from the corresponding program totals of the corresponding seven percent annualized cost tables in each media chapter (Tables 3-3A, 3-3B, 4-3A, 5-3A, 5-3B,
6-3A, and 7-3A).
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-29
Table 8-6A: TOTAL COSTS ASSUMING FULL IMPLEMENTATION ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Sec
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
3
A i r and Rad i at i on
3.1
Air
21,414
22,804
23,154
23,598
23,128
24,369
25,016
29,877
30,314
31 ,985
33,779
35,326
36,967
38,269
39,876
3.2
Rad i at i on
341
312
335
374
415
452
489
528
567
607
647
688
730
770
812
3.3
Total Air & Radiation
21,755
23,116
23,490
23,972
23,543
24,821
25,505
30,404
30,881
32,591
34,426
36,014
37,697
39,040
40,688
4
Water
4.1
Water Qua 1 i ty
26,414
28,060
28,539
29,812
31,406
33,032
34,412
35,905
37,406
38,944
40,475
42,000
43,519
45,031
46,537
4.2
Dri nki ng Water
2,595
2,693
2,801
2,932
3,070
3,367
3,723
3,945
4,228
4,604
4,879
5,093
5,376
5,586
5,652
CO
Total Water
29,009
30,754
31 ,340
32,745
34,476
36,399
38,134
39,851
41,634
43,548
45,354
47,093
48,895
50,617
52,189
5
Land
5.1
Sol id Waste
14,994
15,920
15,482
15,890
16,300
17,048
17,619
18,143
18,657
19,059
19,427
19,789
20,150
20,502
20,851
5.2
Hazardous Waste
1 ,380
1 ,681
2,985
3,435
4,164
5,526
6,805
7,358
7,975
8,458
8,529
9,138
9,676
10,219
10,728
5.3
LUST
1
13
1 ,155
2,904
3,226
3,531
3,809
2,471
2,091
2,124
2,158
2,769
2,468
2,483
5.4
RCRA
16,374
17,603
18,480
20,480
23,369
25,799
27,956
29,310
29,104
29,609
30,080
31,085
32,595
33,188
34,062
5.5
Superfund
326
562
753
1 ,089
1 ,361
1 ,675
2,222
2,682
3,119
3,577
3,998
4,467
4,955
5,459
5,983
5.6
Total Land
16,700
18,165
19,233
21,569
24,729
27,474
30,178
31 ,992
32,223
33,186
34,078
35,552
37,550
38,647
40,045
6
Chem i ca1s
6.1
Tox i c Substances
383
341
428
504
519
691
825
952
962
975
1 ,028
1 ,043
1 ,055
1 ,066
1 ,080
6.2
Pest i c i des
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
6.3
Total Chemicals
802
795
882
1 ,200
1 ,498
1 , 777
1 ,995
2,209
2,267
2,328
2,434
2,508
2,571
2,647
2,738
7
Multi-Media
898
822
1 ,108
1 ,400
1 ,479
1 ,871
1 ,865
1 ,902
1 ,940
1 ,978
2,014
2,055
2,098
2,139
2,178
8
Total Costs
69,164
73,652
76,052
80,887
85,724
92,341
97,677
106,358
108,945
113,630
118,306
123,222
128,810
133,090
137,838
8.1
Percentage of GNP
1 .62
1 .66
1 .64
1 . 70
1 .83
1 .93
2 .00
2.14
2.15
2.20
2.24
2.29
2.36
2.39
2.43
Footnotes to Table 8-6A
Total annualized costs for implementing existing and new regulations for all media for the years 1986-2000. Table includes costs incurred to achieve full implementation of existing
regulations and are taken from the corresponding program totals of the corresponding three percent annualized cost tables in each media chapter (Tables 3-3D, 3-3E, 4-3C, 5-3D, 5-3E,
6-3C, and 7-3C).
November 1990
-------
8-30 Environmental Investments
Table 8-6B: TOTAL COSTS ASSUMING FULL IMPLEMENTATION ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Media
1991
1992
1993
1995
1997
2000
3 Air and Rad i at i on
3.1 Air
3.2 Rad i at i on
3.3 Total Air & Radiation
4 Water
4.1 Water Qua I i ty
4.2 Dri nki ng Water
4.3 Total Water
.139 29,918 30,651
366 340 368
.505 30,258 31,019
37,535
3,305
39,905
3,465
41 ,019
3,632
43,370 44,651
31,444
414
31 ,858
42,912
3,825
46,737
31 ,315
463
31,778
45,218
4,025
49,243
32,880 33,
509
33,389
47,535
4,401
51,936
555
34,153
4,825
54,431
38,409 38,735
603 653
39,013 39,387
51 ,781
5,130
56,911
',251
703
',954 42,
53,958
5,502
59,460
56,169
5,982
62,151
41,906 43,339
755 807
44,146
58,370
6,367
64,737
45,726
50,560 62,740
6,676 7,01 7
46,043
913
46,956
47,516
967
>4,910 67,069
7,259 7,351
67,236
,758 72,1
74,420
5
Land
5
Sol id Waste
16,294
17,330
16,991
17,500
18,011
18,966
19,703
20,322
20,926
21 ,424
21 ,862
22,291
22,718
23,127
23,533
5
2
Hazardous Waste
1 ,436
1 ,762
3,155
3,727
4,604
6,083
7,564
8,315
9,160
9,848
10,131
10,977
11,721
12,473
13,194
5
3
LUST
1
13
1 ,444
3,482
4,140
4,734
5,301
3,988
3,634
3,692
3,751
5,008
4,713
4,733
5
4
RCRA
17,730
19,093
20,159
22,671
26,097
29,189
32,001
33,939
34,075
34,906
35,685
37,019
39,448
40,313
41 ,461
5
5
Superfund
471
788
1 ,083
1 ,572
2,001
2,512
3,329
4,091
4,852
5,650
6,416
7,244
8,102
8,990
9,913
5
6
Total Land
18,200
19,881
21 ,242
24,244
28,098
31 700
35,330
38,030
38,927
40,556
42,101
44,263
47,550
49,303
51,373
6
Chem i ca1s
6
Tox i c Substances
419
385
480
605
669
891
1 ,074
1 ,209
1 ,224
1 ,241
1 ,298
1 ,318
1 ,333
1 ,345
1 ,364
6
2
Pest i c i des
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
6
3
Total Chemicals
838
839
934
1 ,301
1 ,648
1 ,976
2,244
2,466
2,528
2,594
2,705
2,783
2,849
2,927
3,022
7
Multi-Media
934
860
1 ,241
1 ,553
1 709
2,101
2,095
2,133
2,170
2,208
2,243
2,282
2,324
2,363
2,399
8
Total Costs
89,318
95,206
99,086
105,693
112,476
121 ,102
128,253
138,553
142,473
148,462
154,446
160,710
168,207
173,718
179,698
1 Percentage of GNP
2.15
2.14
2.22
2.53
2.63
2.93
3.12
3.17
Footnotes to Table 8-6B
Total annualized costs for implementing existing and new regulations for all media for the years 1986-2000. Table includes costs incurred to achieve full implementation of existing
regulations and are taken from the corresponding program totals of the corresponding ten percent annualized cost tables in each media chapter (Tables 3-3G, 3-3H, 4-3E, 5-3G, 5-3H,
6-3E, and 7-3E).
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-31
Table 8-7: TOTAL FEDERALLY-MANDATED CAPITAL COSTS ASSUMING FULL IMPLEMENTATION
(millions of 1986 dollars)
Rpt
Sec
Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1
982
1983
1984
1985
1986
3
A i r and Rad i at i on
3.1
Air
5,422
7,388
7,392
10,074
10,037
10,032
9,980
10,745
10,549
10,598
10,
130
9,737
11,020
11,240
11,325
3.2
Rad i at i on
24
20
16
8
25
22
64
89
30
37
33
55
47
3.3
Total Air & Radiation
5,422
7,388
7,416
10,094
10,053
10,040
10,005
10,767
10,613
10,687
10,
160
9,774
11,053
11,295
11 ,372
4
Water
4.1
Water Qua 1 i ty
12,721
12,761
13,151
13,730
14,058
15,605
14,895
15,090
15,020
13,211
12,
666
12,345
12,043
12,023
12,666
4.2
Dri nki ng Water
40
40
40
40
40
40
40
40
CO
Total Water
12,721
12,761
13,151
13,730
14,058
15,605
14,895
15,130
15,060
13,251
12,
706
12,385
12,083
12,063
12,706
5
Land
5.1
Sol id Waste
67
77
137
128
119
106
117
115
119
123
103
129
207
209
205
5.2
Hazardous Waste
65
113
368
558
5.3
LUST
5.4
RCRA
67
77
137
128
119
106
117
115
119
123
103
193
320
577
763
5.5
Superfund
42
193
293
648
748
713
5.6
Total Land
67
77
137
128
119
106
117
115
119
165
296
486
968
1 ,325
1 ,476
6
Chem i ca1s
6.1
Tox i c Substances
2
48
83
27
1 7
59
31
136
153
162
6.2
Pest i c i des
6.3
Total Chemicals
2
48
83
27
1 7
59
31
136
153
162
7
Multi-Media
4
19
45
13
42
68
120
76
79
109
84
46
8
Total Costs
18,211
20,225
20,704
23,956
24,249
25,798
25,078
26,138
25,887
24,239
23,
297
22,755
24,349
24,920
25,762
Footnotes to Table 8-7
Total federally-mandated capital costs for implementing existing and new regulations for all media for the years 1972-1986. Table includes costs incurred to achieve full implementation
of existing regulations and are taken from the corresponding program totals of the corresponding capital cost tables (those ending in "-1" ) each section, starting with Table 3-1 and ending
with Table 7-1.
November 1990
-------
8-32 Environmental Investments
Table 8-7A: TOTAL FEDERALLY-MANDATED CAPITAL COSTS ASSUMING FULL IMPLEMENTATION
(millions of 1986 dollars)
Rpt
Sec
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
3
A i r and Rad i at i on
3.1
Air
11 ,325
11,568
11,624
11 ,192
10,790
10,880
10,905
10,876
10,936
10,970
10,955
10,995
10,988
10,985
10,981
3.2
Rad i at i on
47
56
56
66
72
77
82
87
92
98
103
108
113
118
124
3.3
Total Air & Radiation
11,372
11,624
11,680
11,258
10,861
10,957
10,987
10,964
11,028
11,068
11,058
11 ,103
11 ,101
11 ,103
11 ,105
4
Water
4.1
Water Qua 1 i ty
12,666
13,132
11 ,543
11,264
12,926
12,539
12,563
12,374
12,301
12,228
12,155
12,082
12,009
11 ,937
11,864
4.2
Dri nki ng Water
40
40
76
73
80
379
865
1 ,175
1 ,381
1 ,690
1 , 787
1 ,358
639
225
225
CO
Total Water
12,706
13,172
11 ,619
11 ,336
13,006
12,918
13,428
13,549
13,682
13,918
13,942
13,440
12,648
12,162
12,089
5
Land
5.1
Sol id Waste
205
250
261
282
303
2,429
2,952
1 , 745
1 , 766
1 , 787
1 ,307
1 ,328
1 ,349
1 ,370
1 ,391
5.2
Hazardous Waste
558
502
1 , 772
2,449
2,929
2,345
4,002
3,952
4,529
4,081
4,222
4,731
4,092
4,154
4,215
5.3
LUST
5,250
5,250
6,097
5,250
5,250
456
456
456
456
11 ,755
100
100
5.4
RCRA
763
752
2,033
7,981
8,483
10,871
12,204
10,948
6, 751
6,325
5,984
6,514
17,196
5,623
5,706
5.5
Superfund
713
1 ,462
1 ,898
2,781
2,855
3,568
4,895
5,500
5,869
6,187
6,266
6,502
6, 746
6,978
7,223
5.6
Total Land
1 ,476
2,214
3,931
10,762
11,338
14,439
17,099
16,448
12,620
12,512
12,250
13,016
23,942
12,601
12,929
6
Chem i ca1s
6.1
Tox i c Substances
162
156
158
973
978
984
990
165
82
87
93
99
104
110
116
6.2
Pest i c i des
6.3
Total Chemicals
162
156
158
973
978
984
990
165
82
87
93
99
104
110
116
7
Multi-Media
4
3 43 1,89
9 395 1,534
5
8
Total Costs
25,762
27,210
29,286
34,725
37,717
39,303
42,504
41 ,126
37,412
37,584
37,343
37,658
47,795
35,977
36,238
Footnotes to Table 8-7 A
Total federally-mandated capital costs for implementing existing and new regulations for all media for the years 1986-2000. Estimates are taken from the corresponding program totals
of the corresponding capital tables (those ending in "-1 A" and "-IB") in each section, starting with Table 3-1A and ending with Table 7-1 A.
November 1990
-------
Total Costs and Major Sources of Uncertainty
Table 8-8: TOTAL FEDERALLY-MANDATED OPERATING COSTS ASSUMING FULL IMPLEMENTATION
(millions of 1986 dollars)
8-33
Rpt
Sec
Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
3
A i r and Rad i at i on
3.1
Air
7,392
8,332
7,957
7,871
8
,370
9,013
9,368
9,302
8,861
8,221
7,536
8,415
8,685
8,869
9,731
3.2
Rad i at i on
18
17
253
228
153
168
229
222
204
1 78
195
1 79
183
197
314
3.3
Total Air & Radiation
7,409
8,349
8,210
8,099
8
,523
9,180
9,597
9,524
9,065
8,399
7,731
8,594
8,868
9,066
10,045
4
Water
4.1
Water Qua 1 i ty
8,085
8,547
9,328
9,771
10
, 772
11,330
11,644
12,121
12,526
13,026
13,191
13,976
14,413
15,119
16,109
4.2
Dri nki ng Water
167
167
167
167
167
167
167
167
CO
Total Water
8,085
8,547
9,328
9,771
10
, 772
11,330
11,644
12,288
12,693
13,193
13,358
14,143
14,580
15,286
16,276
5
Land
5.1
Sol id Waste
482
499
541
587
61 7
653
671
780
816
780
733
719
767
846
857
5.2
Hazardous Waste
182
147
677
828
958
1 ,306
5.3
LUST
5.4
RCRA
482
499
541
587
61 7
653
671
780
816
962
880
1 ,396
1 ,596
1 ,804
2,164
5.5
Superfund
12
40
69
140
157
191
5.6
Total Land
482
499
541
587
61 7
653
671
780
816
974
920
1 ,465
1 , 736
1 ,961
2,355
6
Chem i ca1s
6.1
Tox i c Substances
9
5
9
47
154
332
414
350
293
212
207
251
335
6.2
Pest i c i des
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
6.3
Total Chemicals
92
143
183
181
349
408
578
840
874
774
690
585
647
721
754
7
Multi-Media
108
139
461
587
726
913
896
875
850
665
570
648
603
625
851
8
Total Costs
16,176
17,677
18,723
19,226
20
,989
22,484
23,385
24,306
24,299
24,005
23,269
25,436
26,434
27,658
30,280
Footnotes to Table 8-8
Total federally-mandated operating costs for implementing existing and new regulations for all media for the years 1972-1986. Estimates are taken from the corresponding program totals
of the corresponding operating cost tables (those ending in "-2") in each section, starting with Table 3-2 and ending with Table 7-2.
November 1990
-------
8-34 Environmental Investments
Table 8-8A: TOTAL FEDERALLY-MANDATED OPERATING COSTS ASSUMING FULL IMPLEMENTATION
(millions of 1986 dollars)
Rpt
Sec
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
3
A i r and Rad i at i on
3.1
Air
9,731
10,427
10,083
9,916
8,823
9,480
9,863
14,655
15,170
16,997
18,935
20,568
22,303
23,686
25,386
3.2
Rad i at i on
314
281
297
322
348
370
391
414
437
459
482
505
527
550
573
3.3
Total Air & Radiation
10,045
10,708
10,380
10,237
9,171
9,850
10,255
15,069
15,607
17,457
19,417
21,072
22,830
24,236
25,959
4
Water
4.1
Water Qua 1 i ty
16,109
17,085
16,975
17,674
18,608
19,595
20,333
21 ,195
22,068
22,982
23,893
24,802
25,708
26,611
27,512
4.2
Dri nki ng Water
167
167
256
1 78
1 79
319
519
580
691
878
953
990
1 ,143
1 ,259
1 ,259
CO
Total Water
16,276
17,252
17,231
17,852
18,786
19,913
20,852
21,775
22,759
23,860
24,846
25,791
26,850
27,870
28,771
5
Land
5.1
Sol id Waste
857
926
912
941
969
1 ,192
1 ,296
1 ,446
1 ,594
1 ,621
1 ,649
1 ,676
1 , 704
1 , 731
1 758
5.2
Hazardous Waste
1 ,306
1 ,574
2,758
3,043
3,576
4,780
5,790
6,077
6,390
6,599
6,386
6,676
6,940
7,203
7,430
5.3
LUST
1
13
888
2,368
2,379
2,416
2,427
1 ,066
662
672
683
694
387
397
5.4
RCRA
2,164
2,501
3,684
4,871
6,913
8,351
9,503
9,949
9,050
8,882
8,707
9,035
9,337
9,321
9,585
5.5
Superfund
191
353
447
641
767
899
1 ,197
1 ,376
1 ,514
1 ,656
1 , 757
1 ,895
2,038
2,186
2,342
5.6
Total Land
2,355
2,854
4,131
5,512
7,680
9,250
10,700
11,325
10,564
10,538
10,464
10,930
11 ,375
11,507
11 ,927
6 Chemicals
6.1
Tox i c Substances
335
283
358
369
318
425
492
608
613
619
666
674
683
692
700
6.2
Pest i c i des
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
6.3
Total Chemicals
754
736
813
1 ,066
1 ,297
1 ,510
1 ,662
1 ,865
1 ,917
1 ,972
2,072
2,140
2,199
2,273
2,358
7
Multi-Media
851
772
930
1 ,196
1 ,172
1 ,563
1 ,557
1 ,594
1 ,632
1 ,670
1 , 708
1 , 751
1 , 795
1 ,839
1 ,883
8
Total Costs
30,280
32,322
33,484
35,863
38,106
42,086
45,025
51,629
52,479
55,497
58,507
61,685
65,049
67,727
70,898
Footnotes to Table 8-8A
Total federally-mandated operating costs for implementing existing and new regulations for all media for the years 1986-2000. Estimates are taken from the corresponding program totals
of the corresponding operating cost tables (those ending in "-2A" and "-2B") in each section, starting with Table 3-2A and ending with Table 7-2A.
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-35
Table 8-9: TOTAL FEDERALLY-MANDATED COSTS ASSUMING FULL IMPLEMENTATION ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Sec
Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
3
A i r and Rad i at i on
3.1
Air
7,916
9
,581
9,927
10,925
12,528
14,287
15,761
16,902
17,635
18,196
18,624
20,573
22,109
23,279
25,077
3.2
Rad i at i on
18
17
255
232
158
1 73
237
232
219
201
220
207
215
233
354
3.3
Total Air & Radiation
7,934
9
,598
10,182
11 ,156
12,686
14,460
15,998
17,134
17,854
18,397
18,844
20,780
22,324
23,513
25,431
4
Water
4.1
Water Qua 1 i ty
9,110
10
,600
12,441
13,991
16,125
17,940
19,455
21 ,147
22,763
24,328
25,514
27,294
28,700
30,376
32,386
4.2
Dri nki ng Water
1 71
1 75
1 78
182
186
190
193
197
CO
Total Water
9,110
10
,600
12,441
13,991
16,125
17,940
19,455
21 ,318
22,938
24,506
25,696
27,480
28,890
30,569
32,583
5
Land
5.1
Sol id Waste
488
513
567
626
667
713
742
861
909
885
847
846
913
1 ,012
1 ,043
5.2
Hazardous Waste
182
147
683
845
1 ,009
1 ,410
5.3
LUST
5.4
RCRA
488
513
567
626
667
713
742
861
909
1 ,067
994
1 ,529
1 , 758
2,021
2,453
5.5
Superfund
15
59
112
235
312
404
5.6
Total Land
488
513
567
626
667
713
742
861
909
1 ,082
1 ,053
1 ,640
1 ,993
2,333
2,856
6
Chem i ca1s
6.1
Tox i c Substances
9
5
9
47
158
345
429
367
315
237
245
303
402
6.2
Pest i c i des
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
6.3
Total Chemicals
92
143
183
181
349
408
583
853
889
791
712
610
685
773
822
7
Multi-Media
108
139
461
587
729
919
903
886
868
695
606
692
657
687
918
8
Total Costs
17,732
20
,993
23,835
26,542
30,556
34,440
37,680
41,052
43,459
45,470
46,911
51,202
54,550
57,875
62,610
8.1
Percentage of GNP
0.59
0.66
0.76
0.86
0.94
1 .01
1 .05
1.12
1.18
1 .22
1 .29
1 .36
1 .35
1 .39
1 .46
Footnotes to Table 8-9
Total federally-mandated operating costs for implementing existing and new regulations for all media for the years 1972-1986. Estimates are taken from the corresponding program totals
of the corresponding seven percent annualized cost tables (those ending in "-3") in each media chapter, starting with Table 3-3 and ending with Table 7-3.
November 1990
-------
8-36 Environmental Investments
Table 8-9A: TOTAL FEDERALLY-MANDATED COSTS ASSUMING FULL IMPLEMENTATION ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Sec
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
3
A i r and Rad i at i on
3.1
Air
25,077
26,679
27,238
27,872
27,588
29,005
29,692
34,528
34,905
36,493
38,212
39,699
41,278
42,513
44,049
3.2
Rad i at i on
354
326
347
377
410
438
467
497
528
559
590
622
654
685
71 7
3.3
Total Air & Radiation
25,431
27,005
27,585
28,249
27,998
29,443
30,159
35,025
35,433
37,051
38,802
40,321
41,932
43,198
44,765
4
Water
4.1
Water Qua 1 i ty
32,386
34,421
35,241
36,847
38,823
40,820
42,571
44,430
46,295
48,194
50,085
51,967
53,840
55,706
57,563
4.2
Dri nki ng Water
197
201
297
226
234
410
692
864
1 ,105
1 ,452
1 ,696
1 ,860
2,074
2,208
2,225
CO
Total Water
32,583
34,622
35,538
37,073
39,057
41,230
43,263
45,294
47,400
49,645
51 780
53,827
55,914
57,913
59,788
5
Land
5.1
Sol id Waste
1 ,043
1 ,135
1 ,146
1 ,201
1 ,258
1 , 710
2,086
2,393
2,696
2,880
3,019
3,162
3,305
3,451
3,599
5.2
Hazardous Waste
1 ,410
1 ,725
3,077
3,593
4,402
5,827
7,216
7,875
8,616
9,210
9,396
10,133
10,782
11,438
12,062
5.3
LUST
1
13
1 ,311
3,215
3,716
4,177
4,611
3,286
2,920
2,966
3,014
3,972
3,673
3,691
5.4
RCRA
2,453
2,861
4,236
6,104
8,874
11,254
13,479
14,879
14,598
15,009
15,381
16,308
18,059
18,563
19,352
5.5
Superfund
404
683
930
1 ,348
1 , 704
2,124
2,816
3,439
4,050
4,690
5,296
5,958
6,645
7,355
8,093
5.6
Total Land
2,856
3,545
5,166
7,452
10,579
13,378
16,295
18,318
18,648
19,699
20,677
22,266
24,704
25,918
27,445
6
Chem i ca1s
6.1
Tox i c Substances
402
365
456
558
600
799
960
1 ,091
1 ,104
1,119
1 ,174
1 ,192
1 ,206
1 ,217
1 ,234
6.2
Pest i c i des
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
6.3
Total Chemicals
822
819
910
1 ,255
1 ,579
1 ,885
2,130
2,348
2,408
2,472
2,580
2,657
2,721
2,799
2,892
7
Multi-Media
918
842
1 ,180
1 ,483
1 ,603
1 ,995
1 ,989
2,027
2,065
2,102
2,138
2,177
2,220
2,260
2,298
8
Total Costs
62,610
66,832
70,378
75,512
80,816
87,932
93,837
103,012
105,953
110,969
115,978
121 ,248
127,492
132,088
137,188
8.1
Percentage of GNP
1 .46
1 .51
1 .52
1 .58
1 . 73
1 .84
1 .92
2 .07
2 .09
2.14
2.20
2.26
2.33
2.37
2.42
Footnotes to Table 8-9A
Total federally-mandated operating costs for implementing existing and new regulations for all media for the years 1986-2000. Estimates are taken from the corresponding program totals
of the corresponding seven percent annualized cost tables in each media chapter (Tables 3-3A, 3-3B, 4-3A, 5-3A, 5-3B, 6-3A, and 7-3A).
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-37
Table 8-9B: TOTAL FEDERALLY-MANDATED COSTS ASSUMING FULL IMPLEMENTATION ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Sec
Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
3
A i r and Rad i at i on
3.1
Air
7,769
9,235
9,380
10,110
11,447
12,941
14,151
15,008
15,462
15,744
15,911
17,619
18,881
19,828
21 ,414
3.2
Rad i at i on
18
17
255
231
156
1 71
234
229
214
193
212
198
204
221
341
3.3
Total Air & Radiation
7, 787
9,251
9,635
10,341
11,603
13,112
14,386
15,237
15,676
15,937
16,123
17,817
19,085
20,050
21,755
4
Water
4.1
Water Qua 1 i ty
8, 734
9,847
11 ,299
12,443
14,161
15,515
16,589
17,835
19,007
20,181
20,993
22,408
23,458
24,778
26,414
4.2
Dri nki ng Water
1 70
1 72
1 75
1 78
180
183
186
189
CO
Total Water
8,734
9,847
11 ,299
12,443
14,161
15,515
16,589
18,005
19,179
20,356
21 ,171
22,588
23,641
24,964
26,602
5
Land
5.1
Sol id Waste
486
509
559
615
653
695
721
838
883
855
814
809
871
964
989
5.2
Hazardous Waste
182
147
681
840
994
1 ,380
5.3
LUST
5.4
RCRA
486
509
559
615
653
695
721
838
883
1 ,037
961
1 ,491
1 ,712
1 ,958
2,370
5.5
Superfund
14
52
96
200
255
326
5.6
Total Land
486
509
559
615
653
695
721
838
883
1 ,051
1 ,013
1 ,586
1 ,912
2,214
2,695
6
Chem i ca1s
6.1
Tox i c Substances
9
5
9
47
157
341
425
362
309
229
234
288
383
6.2
Pest i c i des
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
6.3
Total Chemicals
92
143
183
181
349
408
581
849
885
786
705
603
674
758
802
7
Multi-Media
108
139
461
587
728
91 7
901
883
863
686
596
679
642
669
898
8
Total Costs
17,207
19,889
22,138
24,167
27,495
30,648
33,178
35,812
37,486
38,816
39,608
43,274
45,954
48,654
52,753
8.1
Percentage of GNP
0.57
0.63
0.70
0.78
0.85
0.90
0.93
0.97
1 .02
1 .04
1 .09
1.15
1.14
1 .17
1 .23
Footnotes to Table 8-9B
Total federally-mandated operating costs for implementing existing and new regulations for all media for the years 1972-1986. Estimates are taken from the corresponding program totals
of the corresponding three percent annualized cost tables in each media chapter (Tables 3-3C, 4-3B, 5-3C, 6-3B, and 7-3B).
November 1990
-------
8-38 Environmental Investments
Table 8-9C: TOTAL FEDERALLY-MANDATED COSTS ASSUMING FULL IMPLEMENTATION ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Sec
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
3
A i r and Rad i at i on
3.1
Air
21,414
22,804
23,154
23,598
23,128
24,369
25,016
29,877
30,314
31 ,985
33,779
35,326
36,967
38,269
39,876
3.2
Rad i at i on
341
311
330
359
389
415
442
470
498
526
554
583
612
640
669
3.3
Total Air & Radiation
21,755
23,116
23,485
23,957
23,517
24,785
25,458
30,346
30,811
32,510
34,334
35,910
37,580
38,910
40,545
4
Water
4.1
Water Qua 1 i ty
26,414
28,060
28,539
29,812
31,406
33,032
34,412
35,905
37,406
38,944
40,475
42,000
43,519
45,031
46,537
4.2
Dri nki ng Water
189
191
285
212
218
384
642
782
986
1 ,286
1 ,482
1 ,609
1 ,806
1 ,935
1 ,947
CO
Total Water
26,602
28,251
28,824
30,025
31,624
33,416
35,054
36,687
38,392
40,230
41 ,957
43,609
45,324
46,965
48,484
5
Land
5.1
Sol id Waste
989
1 ,075
1 ,079
1 ,126
1 ,175
1 ,561
1 ,859
2,120
2,378
2,517
2,625
2,734
2,844
2,956
3,069
5.2
Hazardous Waste
1 ,380
1 ,681
2,985
3,435
4,164
5,526
6,805
7,358
7,975
8,458
8,529
9,138
9,676
10,219
10,728
5.3
LUST
1
13
1 ,155
2,904
3,226
3,531
3,809
2,471
2,091
2,124
2,158
2,769
2,468
2,483
5.4
RCRA
2,370
2,757
4,077
5,716
8,243
10,313
12,195
13,287
12,825
13,067
13,278
14,030
15,289
15,642
16,280
5.5
Superfund
326
562
753
1 ,089
1 ,361
1 ,675
2,222
2,682
3,119
3,577
3,998
4,467
4,955
5,459
5,983
5.6
Total Land
2,695
3,320
4,830
6,804
9,603
11,987
14,417
15,969
15,944
16,644
17,276
18,497
20,244
21 ,101
22,263
6
Chem i ca1s
6.1
Tox i c Substances
383
341
428
504
519
691
825
952
962
975
1 ,028
1 ,043
1 ,055
1 ,066
1 ,080
6.2
Pest i c i des
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
6.3
Total Chemicals
802
795
882
1 ,200
1 ,498
1 , 777
1 ,995
2,209
2,267
2,328
2,434
2,508
2,571
2,647
2,738
7
Multi-Media
898
822
1 ,108
1 ,400
1 ,479
1 ,871
1 ,865
1 ,902
1 ,940
1 ,978
2,014
2,055
2,098
2,139
2,178
8
Total Costs
52,753
56,303
59,128
63,386
67,722
73,836
78,789
87,114
89,355
93,690
98,014
102,579
107,816
111,762
116,208
8.1
Percentage of GNP
1 .23
1 .27
1 .28
1 .33
1 .45
1 .54
1 .61
1 . 75
1 . 76
1 .81
1 .86
1 .91
1 .97
2 .01
2 .05
Footnotes to Table 8-9C
Total federally-mandated operating costs for implementing existing and new regulations for all media for the years 1986-2000. Estimates are taken from the corresponding program totals
of the corresponding three percent annualized cost tables in each media chapter (Tables 3-3D, 3-3E, 4-3C, 5-3D, 5-3E, 6-3C, and 7-3C).
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-39
Table 8-9D: TOTAL FEDERALLY-MANDATED COSTS ASSUMING FULL IMPLEMENTATION ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Sec
Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
3
A i r and Rad i at i on
3.1
Air
8,041
9,874
10,389
11 ,612
13,438
15,419
17,113
18,491
19,457
20,252
20,897
23,046
24,811
26,165
28,139
3.2
Rad i at i on
18
17
256
233
159
1 75
239
235
223
207
228
216
224
244
366
3.3
Total Air & Radiation
8,058
9,891
10,645
11,845
13,597
15,594
17,353
18,726
19,681
20,459
21 ,124
23,261
25,034
26,409
28,505
4
Water
4.1
Water Qua 1 i ty
9,434
11 ,250
13,426
15,326
17,818
20,031
21 ,926
24,003
26,001
27,903
29,412
31,506
33,220
35,202
37,535
4.2
Dri nki ng Water
1 72
1 76
181
186
190
195
200
205
CO
Total Water
9,434
11 ,250
13,426
15,326
17,818
20,031
21 ,926
24,175
26,178
28,084
29,598
31,697
33,415
35,402
37,740
5
Land
5.1
Sol id Waste
490
516
573
635
679
727
759
881
932
910
875
877
949
1 ,052
1 ,088
5.2
Hazardous Waste
182
147
684
849
1 ,022
1 ,436
5.3
LUST
5.4
RCRA
490
516
573
635
679
727
759
881
932
1 ,092
1 ,022
1 ,561
1 , 798
2,074
2,524
5.5
Superfund
16
65
125
265
361
471
5.6
Total Land
490
516
573
635
679
727
759
881
932
1 ,109
1 ,087
1 ,686
2,063
2,435
2,994
6
Chem i ca1s
6.1
Tox i c Substances
9
5
9
47
159
348
433
371
321
243
254
316
419
6.2
Pest i c i des
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
6.3
Total Chemicals
92
143
183
181
349
408
584
856
893
795
71 7
616
694
786
838
7
Multi-Media
108
139
461
587
729
921
905
889
873
702
615
702
671
702
934
8
Total Costs
18,182
21 ,939
25,289
28,575
33,173
37,681
41,526
45,527
48,557
51 ,148
53,142
57,963
61,877
65,734
71,011
8.1
Percentage of GNP
0.61
0.69
0.81
0.92
1 .02
1.11
1.16
1 .24
1 .32
1 .37
1 .46
1 .54
1 .54
1 .58
1 .66
Footnotes to Table 8-9D
Total federally-mandated operating costs for implementing existing and new regulations for all media for the years 1972-1986. Estimates are taken from the corresponding program totals
of the corresponding ten percent annualized cost tables in each media chapter (Tables 3-3F, 4-3D, 5-3F, 6-3D, and 7-3D).
November 1990
-------
8-40 Environmental Investments
Table 8-9E: TOTAL FEDERALLY-MANDATED COSTS ASSUMING FULL IMPLEMENTATION ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Sec
Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
3
A i r and Rad i at i on
3.1
Air
28,139
29,918
30,651
31 ,444
31 ,315
32,880
33,598
38,409
38,735
40,251
41,906
43,339
44,865
46,043
47,516
3.2
Rad i at i on
366
339
361
393
427
457
488
521
553
587
621
655
690
723
758
3.3
Total Air & Radiation
28,505
30,257
31 ,012
31 ,837
31,743
33,337
34,086
38,930
39,288
40,837
42,526
43,995
45,556
46,767
48,274
4
Water
4.1
Water Qua 1 i ty
37,535
39,905
41 ,019
42,912
45,218
47,535
49,606
51 781
53,958
56,169
58,370
60,560
62,740
64,910
67,069
4.2
Dri nki ng Water
205
209
307
238
248
432
734
933
1 ,207
1 ,592
1 ,877
2,073
2,301
2,439
2,461
CO
Total Water
37,740
40,114
41 ,326
43,150
45,466
47,967
50,340
52,714
55,165
57,761
60,247
62,633
65,041
67,349
69,530
5
Land
5.1
Sol id Waste
1 ,088
1 ,186
1 ,203
1 ,264
1 ,328
1 ,837
2,279
2,625
2,965
3,187
3,354
3,525
3,697
3,872
4,049
5.2
Hazardous Waste
1 ,436
1 ,762
3,155
3,727
4,604
6,083
7,564
8,315
9,160
9,848
10,131
10,977
11,721
12,473
13,194
5.3
LUST
1
13
1 ,444
3,482
4,140
4,734
5,301
3,988
3,634
3,692
3,751
5,008
4,713
4,733
5.4
RCRA
2,524
2,949
4,371
6,436
9,414
12,060
14,577
16,241
16,113
16,669
17,177
18,253
20,427
21,057
21,976
5.5
Superfund
471
788
1 ,083
1 ,572
2,001
2,512
3,329
4,091
4,852
5,650
6,416
7,244
8,102
8,990
9,913
5.6
Total Land
2,994
3,737
5,454
8,008
11 ,415
14,571
17,906
20,332
20,965
22,319
23,593
25,497
28,529
30,048
31,888
6
Chem i ca1s
6.1
Tox i c Substances
419
385
480
605
669
891
1 ,074
1 ,209
1 ,224
1 ,241
1 ,298
1 ,318
1 ,333
1 ,345
1 ,364
6.2
Pest i c i des
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
6.3
Total Chemicals
838
839
934
1 ,301
1 ,648
1 ,976
2,244
2,466
2,528
2,594
2,705
2,783
2,849
2,927
3,022
7
Multi-Media
934
860
1 ,241
1 ,553
1 , 709
2,101
2,095
2,133
2,170
2,208
2,243
2,282
2,324
2,363
2,399
8
Total Costs
71,011
75,806
79,967
85,849
91,980
99,953
106,671
116,575
120,117
125,719
131 ,314
137,189
144,299
149,453
155,113
8.1
Percentage of GNP
1 .66
1 .71
1 . 73
1 .80
1 .96
2 .09
2.19
2.34
2.37
2.43
2.49
2.55
2.64
2.68
2 . 74
Footnotes to Table 8-9E
Total federally-mandated operating costs for implementing existing and new regulations for all media for the years 1986-2000. Estimates are taken from the corresponding program totals
of the corresponding ten percent annualized cost tables in each media chapter (Tables 3-3G, 3-3H, 4-3E, 5-3G, 5-3H, 6-3E, and 7-3E).
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-41
Table 8-10: TOTAL CAPITAL COSTS ASSUMING PRESENT IMPLEMENTATION BY FUNDING SOURCE
(millions of 1986 dollars)
Funding Source/Media 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986
A EPA
A.3 Air
A.4
Water
1 ,044
1 ,607
3,312
3,906
4,589
6,209
5,067
5,349
5,734
4,755
4,413
3,316
2,828
2,950
3,113
A.5
Land
38
1 71
195
389
396
293
A.6
Chem i ca1s
A.7
Multi-Media
A.8
Total EPA
1 ,044
1 ,607
3,312
3,906
4,589
6,209
5,067
5,349
5,734
4,793
4,584
3,511
3,217
3,346
3,406
A.9
Percentage of Total
5.16
7.16
14.33
14.85
17.25
22 .04
18.44
18.56
19.97
1 7 . 73
1 7 . 72
13.98
11 .97
12.10
11 .79
B
Non-EPA Federal
B 3
Air
132
152
146
119
108
96
123
131
64
96
73
96
85
B 4
Water
75
80
433
552
478
445
467
468
348
258
261
415
443
634
533
B 5
Land
56
53
42
24
34
23
25
29
19
52
218
311
366
B 6
Chemicals
2
28
83
27
1 7
16
8
15
33
45
B. 7
Multi-Media
4
19
45
13
42
68
120
76
79
109
84
46
B 8
Total Non-EPA Federal
75
80
621
761
685
635
650
712
591
555
436
650
858
1 ,158
1 ,075
B 9
Percentage of Total
0.37
0.36
2.69
2.89
2.58
2.25
2.37
2.47
2 .06
2 .05
1 .69
2.59
3.20
4.19
3 . 72
C
State Government
C 3
Air
160
196
211
184
264
312
304
385
487
507
539
442
421
329
312
C 4
Water
320
313
339
348
358
418
466
535
560
526
460
378
426
467
484
C 5
Land
4
19
22
43
44
33
C 6
Chem i ca1s
C 8
Total State Govt
481
510
550
532
622
730
770
920
1 ,047
1 ,037
1 ,018
842
889
840
829
C 9
Percentage of Total
2.38
2.27
2.38
2 .02
2.34
2.59
2.80
3.19
3.65
3.84
3.94
3.35
3.31
3 .04
2.87
D
n "5
Local Government
A i r
U . o
D 4
Water
4,718
3,552
2,948
2,678
1 , 71 7
1 ,387
1 ,668
1 ,972
2,636
2,811
2,862
3,514
3,194
2,999
3,729
D 5
Land
613
620
634
652
646
668
702
713
725
731
741
753
756
849
984
D 6
Chem i ca1s
D 7
Multi-Media
D 8
Total Local Govt
5,331
4,172
3,582
3,330
2,363
2,054
2,370
2,685
3,361
3,542
3,602
4,267
3,950
3,849
4,714
D 9
Percentage of Total
26.36
18.58
15.50
12.66
8.88
7.29
8.62
9.32
11 .70
13.10
13.92
16.99
14.70
13.92
16.32
E
Pr i vate
E 3
Air
5,262
7,192
7,073
9,758
9,643
9,608
9,593
10,286
10,003
10,049
9,557
9,236
10,559
10,871
10,976
E 4
Water
7,301
7,979
6,987
7,164
7,812
7,961
8,051
7,746
6,823
5,920
5,686
5,657
6,067
6,045
6,058
E 5
Land
733
911
980
847
887
980
963
1 ,126
1 ,157
1 ,140
944
926
1 ,203
1 ,427
1 , 709
E 6
Chemicals
20
43
23
121
120
117
E 7
Multi-Media
E 8
Total Private
13,295
16,082
15,040
17,769
18,342
18,549
18,626
19,158
17,983
17,108
16,229
15,843
17,950
18,463
18,860
E 9
Percentage of Total
65 . 74
71 .63
65 .09
67.57
68.95
65.83
67 . 77
66.47
62.63
63.28
62 . 73
63 .09
66.82
66.76
65.30
F
Total Costs
20,225
22,451
23,105
26,297
26,600
28,178
27,484
28,825
28,715
27,036
25,870
25,113
26,864
27,656
28,884
November 1990
-------
8-42
Environmental Investments
Footnotes to Table 8-10
Total capital costs for present implementation of existing regulatory programs for all media for the years 1972-1986. Estimates are taken from the corresponding program totals of the
corresponding capital cost tables (those ending in "-1") in each media chapter, starting with Table 3-1 and ending with Table 7-1.
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-43
Table 8-10A: TOTAL CAPITAL COSTS ASSUMING PRESENT IMPLEMENTATION BY FUNDING SOURCE
(millions of 1986 dollars)
Funding Source/Media 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
A EPA
A3 Air
k.A Water 3,113 2,831 2,271 2,038 1,971 1,879 1,395 898 434
A.5
Land
293
760
1 ,077
995
905
1 ,155
1 ,270
1 ,385
1 ,501
1 ,616
1 , 731
1 ,846
1 ,961
2,076
2,191
A.6
Chem i ca1s
A.7
Multi-Media
A.8
Total EPA
3,406
3,591
3,348
3,033
2,876
3,034
2,665
2,283
1 ,935
1 ,616
1 , 731
1 ,846
1 ,961
2,076
2,191
A.9
Percentage of Total
11 .79
11 .85
10.41
8 .05
7.39
7.50
6.16
5.51
5.19
4.36
4 . 70
4.96
4.14
5.83
6.10
B
Non-EPA Federal
B 3
Air
85
97
96
106
111
115
120
125
129
134
139
143
148
153
157
B 4
Water
533
680
753
826
899
972
1 ,046
1,119
1 ,192
1 ,265
1 ,338
1 ,412
1 ,485
1 ,558
1 ,631
B 5
Land
366
494
545
1 ,858
2,264
2,966
5,677
6,225
6,602
6,396
6,109
6,130
6,151
6,173
6,194
B 6
Chemicals
45
42
48
53
59
65
70
76
82
87
93
99
104
110
116
B 7
Multi-Media
46
4:
34 24
15
5
B 8
Total Non-EPA Federal
1 ,075
1 ,355
1 ,476
2,867
3,348
4,124
6,913
7,545
8,005
7,883
7,679
7,784
7,889
7,994
8,099
B 9
Percentage of Total
3.72
4.47
4.59
7.61
8.60
10.19
15.99
18.23
21 .48
21 .27
20.83
20.91
16.64
22.43
22.54
C
State Government
C 3
Air
312
276
253
227
200
1 74
148
121
95
69
42
16
(10)
(37)
684
(63)
C 4
Water
484
490
544
557
570
582
595
608
621
633
646
659
672
697
C 5
Land
33
84
120
111
101
128
141
154
167
180
192
205
218
231
243
C 6
Chem i ca1s
C 8
Total State Govt
829
850
91 7
894
871
884
884
883
883
882
880
880
879
879
877
C 9
Percentage of Total
2 .87
2.80
2.85
2.37
2.24
2.18
2 .04
2.13
2.37
2.38
2.39
2.36
1 .85
2.47
2.44
D
Pi
Local Government
A i r-
u. ^
D 4
A 1 1
Water
3,729
4,215
3,214
3,259
3,317
3,593
4,120
4,290
4,490
4,775
4,887
4,568
4,013
3,708
3,732
D 5
Land
984
1 ,018
930
1 ,425
1 ,448
3,616
3,598
2,392
1 ,965
1 ,988
2,010
2,033
2,634
2,060
2,082
D 6
Chem i ca1s
83C
83C
8:
50 83
0
D 7
Multi-Media
14S
D 8
Total Local Govt
4, 714
5,233
4,293
5,515
5,594
8,040
8,548
6,682
6,455
6, 762
6,897
6,601
6,647
5,768
5,814
D 9
Percentage of Total
16.32
17.26
13.35
14.64
14.37
19.86
19.77
16.14
17.32
18.25
18.71
1 7 . 74
14.02
16.19
16.18
E
Pr i vate
E 3
Air
10,976
11 ,256
11,365
11,005
10,629
10,762
10,808
10,811
10,902
10,968
10,984
11,056
11,080
11 ,109
11 ,138
E 4
Water
6,058
6,137
5,946
5,806
5,665
5,264
5,210
5,124
5,020
4,934
4,809
4,588
4,314
4,096
3,951
E 5
Land
1 ,709
1 ,777
2,981
8,089
8,329
8,277
8,110
7,981
4,068
4,008
3,878
4,466
14,634
3,712
3,862
E 6
Chem i ca1s
117
114
11C
) 8S
89
i
39 8
9 8
9
E 7
Multi-Media
1 , 71
j 371
1 ,519
E 8
Total Private
18,860
19,284
22 ,11 8
25,361
26,232
24,391
24,217
24,005
19,990
19,910
19,671
20,109
30,028
18,917
18,951
E 9
Percentage of Total
65 .30
63.62
68 . 79
67.32
67.40
60.27
56.02
57.99
53.64
53 . 73
53.37
54 .03
63.34
53 .09
52 . 74
F
Total Costs
28,884
30,313
32,151
37,670
38,921
40,473
43,227
41 ,398
37,268
37,053
36,858
37,220
47,404
35,633
35,932
November 1990
-------
8-44
Environmental Investments
Footnotes to Table 8-1 OA
Total capital costs for present implementation of existing regulatory programs for all media for the years 1986-2000. Estimates are taken from the corresponding program totals of the
corresponding capital cost tables (those ending in "-1 A" or "-IB") in each media chapter, starting with Table 3-1A and ending with Table 7-1 A.
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-45
Table 8-11: TOTAL OPERATING COSTS ASSUMING PRESENT IMPLEMENTATION BY FUNDING SOURCE
(millions of 1986 dollars)
Funding Source/Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
A
EPA
A.3
Air
359
381
306
304
291
295
239
322
341
292
274
246
249
249
244
A.4
Water
331
336
593
371
518
528
514
489
569
528
464
408
336
333
312
A.5
Land
70
72
20
24
36
36
39
99
114
213
183
204
251
257
319
A.6
Chemicals
26
33
43
40
75
79
69
144
148
182
147
136
131
145
163
A. 7
Muiti-Media
108
139
193
203
263
443
488
402
434
412
365
343
358
371
393
A.8
Total EPA
894
960
1 ,155
943
1 ,183
1
,381
1 ,349
1 ,455
1 ,607
1 ,628
1 ,433
1 ,337
1 ,326
1 ,355
1 ,431
A.9
Percentage of Total
3.61
3.62
4.14
3.29
3.82
4.15
3.89
4 .01
4.37
4.43
4 .09
3.62
3.42
3.34
3.24
B
Non-EPA Federal
B 3
Air
407
376
361
402
481
375
374
320
329
338
371
451
487
B 4
Water
81
86
309
354
378
358
370
349
361
330
376
388
355
385
439
B 5
Land
80
109
105
101
94
103
103
152
1 79
181
203
273
248
B 6
Chemicals
13
53
65
1 76
272
169
132
60
67
103
163
B. 7
Multi-Media
268
384
463
470
408
473
416
253
205
305
245
254
458
B 8
Total Non-EPA Federal
81
86
1 ,064
1 ,223
1 ,320
1
,383
1 ,418
1 ,476
1 ,525
1 ,224
1 ,220
1 ,272
1 ,240
1 ,466
1 , 795
B 9
Percentage of Total
0.33
0.32
3.82
4.26
4.27
4.16
4 .09
4 .07
4.15
3.33
3.48
3.44
3.20
3.62
4 .07
C
State Government
C 3
Air
343
359
394
348
338
363
390
423
441
406
396
410
420
455
507
C 4
Water
1 ,157
1 ,103
1 ,086
1 ,172
1 ,199
1
,182
1 ,153
1 ,161
1 ,233
1 ,271
1 ,210
1 ,169
1 ,226
1 ,298
1 ,404
C 5
Land
4
8
16
20
27
C 6
Chemicals
0
0
0
1
1
3
12
25
23
19
18
1 7
1 7
18
1 7
C 8
Total State Govt
1 ,501
1 ,463
1 ,480
1 ,520
1 ,538
1
,548
1 ,555
1 ,610
1 ,697
1 ,695
1 ,628
1 ,604
1 ,679
1 , 791
1 ,955
C 9
Percentage of Total
6.07
5.51
5.31
5.30
4.97
4.65
4.49
4.43
4.61
4.61
4.64
4.34
4.33
4.42
4.43
D
n q
Local Government
A i r*
U . 6
D 4
A 1 1
Water
3,754
3,937
4,297
4,712
5,111
5
,366
5,569
5,858
6,225
6, 781
7,283
7,593
7,797
8,124
8,668
D 5
Land
3,473
3,512
3,592
3,694
3,661
3
, 783
3,976
4,042
4,106
4,144
4,196
4,270
4,510
4,786
5,038
D 6
O
Chem i ca1s
D
D 7
Multi-Media
D 8
Total Local Govt
7,227
7,450
7,889
8,406
8,772
9
,149
9,545
9,901
10,331
10,925
11 ,480
11,863
12,307
12,910
13,712
D 9
Percentage of Total
29.22
28 .07
28.30
29.31
28.36
27.51
27.53
27.27
28.10
29 . 71
32 . 76
32.11
31 . 72
31 .85
31 .05
E
Pr i vate
E 3
Air
6, 707
7,609
7,103
7,071
7,533
8
,120
8,487
8,404
7,909
7,381
6, 732
7,600
7,829
7,911
8,807
E 4
Water
3,493
3,825
3,817
3,987
4,467
4
,876
5,112
5,444
5,376
5,470
5,276
5,861
6,169
6,529
6,929
E 5
Land
4,766
5,042
5,228
5,388
5,862
6
,528
6, 769
7,519
7,891
8,042
6,885
7,030
7,818
8,122
9,119
E 6
Chemicals
65
110
139
140
261
273
432
494
431
404
392
372
432
454
405
E 7
Multi-Media
E 8
Total Private
15,032
16,585
16,288
16,586
18,123
19
, 797
20,799
21 ,861
21,607
21 ,296
19,285
20,863
22,248
23,016
25,260
E 9
Percentage of Total
60.77
62.48
58.43
57.84
58.58
59.53
60.00
60.22
58 . 77
57.92
55 .03
56.48
57.34
56.78
57.21
F
Total Costs
24,735
26,545
27,876
28,678
30,936
33
,258
34,666
36,303
36,767
36,768
35,046
36,939
38,800
40,538
44,155
November 1990
-------
8-46
Environmental Investments
Footnotes to Table 8-11
Total operating costs for present implementation of existing regulatory programs for all media for the years 1972-1986. Estimates are taken from the corresponding program totals of
the corresponding operating cost tables (those ending in "-2") in each media chapter, starting with Table 3-2 and ending with Table 7-2.
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-47
Table 8-11 A: TOTAL OPERATING COSTS ASSUMING PRESENT IMPLEMENTATION BY FUNDING SOURCE
(millions of 1986 dollars)
Funding Source/Media 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
A
EPA
A
3
Air
244
268
235
245
260
328
251
249
247
245
243
241
239
238
236
A
4
Water
312
326
337
331
381
396
349
342
335
329
322
315
308
302
295
A
5
Land
319
501
573
648
687
744
815
885
954
1 ,024
1 ,092
1 ,162
1 ,232
1 ,301
1 ,370
A
6
Chemicals
163
1 75
181
239
212
206
215
225
236
246
257
268
278
289
301
A
7
Muiti-Media
393
389
424
434
481
528
499
514
529
544
559
580
601
622
643
A
8
Total EPA
1 ,431
1 ,659
1 , 750
1 ,897
2,021
2,202
2,128
2,215
2,301
2,387
2,473
2,566
2,659
2,751
2,845
A
9
Percentage of Total
3.24
3.54
3.69
3 . 78
3.84
3.88
3.56
3.57
3.66
3.64
3.63
3.62
3.61
3.62
3.61
B
Non-EPA Federal
B
3
Air
487
506
541
577
612
647
682
718
753
788
823
859
894
929
964
B
4
Water
439
437
455
472
489
506
523
540
557
574
591
608
625
642
659
B
5
Land
248
295
312
542
632
765
1 ,252
1 ,357
1 ,431
1 ,405
1 ,363
1 ,375
1 ,387
1 ,400
1 ,412
B
6
Chemicals
163
105
102
99
96
95
91
89
86
84
81
79
76
73
71
B
7
Multi-Media
458
382
405
428
450
473
496
519
541
564
587
610
632
655
678
B
8
Total Non-EPA Federal
1 , 795
1 , 726
1 ,815
2,117
2,280
2,485
3,044
3,222
3,368
3,415
3,445
3,530
3,615
3,700
3,784
B
9
Percentage of Total
4 .07
3.68
3.82
4.21
4.33
4.38
5.10
5.20
5.36
5.21
5 .06
4.99
4.90
4.87
4.81
C
State Government
C
3
Air
507
507
487
496
505
515
524
534
543
553
562
572
581
591
600
C
4
Water
1 ,404
1 ,381
1 ,343
1 ,359
1 ,374
1 ,389
1 ,405
1 ,420
1 ,435
1 ,451
1 ,466
1 ,482
1 ,497
1 ,512
1 ,528
C
5
Land
27
37
53
76
102
132
163
198
233
275
320
369
421
476
535
C
6
Chemicals
1 7
16
16
24
20
21
21
25
22
23
24
25
29
26
27
C
8
Total State Govt
1 ,955
1 ,941
1 ,899
1 ,954
2,001
2,057
2,113
2,177
2,234
2,302
2,373
2,447
2,528
2,605
2,689
C
9
Percentage of Total
4.43
4.14
4 .00
3.89
3.80
3.63
3.54
3.51
3.56
3.51
3.48
3.46
3.43
3.43
3.42
D
Pi
O
Local Government
A i r
U
D
o
4
Water
8,668
8,931
9,205
9,549
9,902
10,369
10,882
11,305
11 ,736
12,228
12,629
12,999
13,464
13,899
14,221
D
5
Land
5,038
5,194
5,036
5,224
5,407
5,710
5,827
6,056
6,176
6,257
6,364
6,472
6,579
6,670
6, 778
D
6
Chemicals
6
80
80
64
128
191
255
255
255
255
255
255
255
255
D
7
Multi-Media
24
24
24
24
24
24
24
24
24
24
24
24
D
8
Total Local Govt
13,712
14,124
14,321
14,877
15,396
16,231
16,924
17,640
18,191
18,764
19,272
19,749
20,322
20,848
21,278
D
9
Percentage of Total
31 .05
30.10
30.17
29.62
29.27
28.63
28.33
28.45
28.97
28.62
28.30
27.89
27.57
27.46
27 .02
E
Pr i vate
E
3
Air
8,807
9,427
9,120
8,929
7,808
8,379
8,823
9,232
9,702
11 ,324
12,824
14,020
15,321
16,268
17,676
E
4
Water
6,929
7,672
7,324
7,701
8,079
8,559
8,836
9,087
9,348
9,622
9,876
10,123
10,391
10,652
10,889
E
5
Land
9,119
9,936
10,707
11,820
13,895
15,188
16,178
16,610
15,797
15,852
15,845
16,319
16,768
16,919
17,336
E
6
Chemicals
405
440
434
624
905
1 ,061
1 ,144
1 ,270
1 ,318
1 ,364
1 ,455
1 ,514
1 ,560
1 ,629
1 705
E
7
Multi-Media
101
310
216
538
538
538
538
538
538
538
538
538
538
E
8
Total Private
25,260
27,475
27,685
29,384
30,903
33,726
35,519
36,738
36,704
38,700
40,538
42,514
44,578
46,007
48,143
E
9
Percentage of Total
57.21
58.55
58.32
58.50
58 . 75
59.48
59.47
59.26
58.45
59 .02
59.53
60.04
60.48
60.61
61 .14
F
Total Costs
44,155
46,925
47,470
50,228
52,601
56,701
59,729
61 ,992
62,797
65,567
68,101
70,805
73,701
75,911
78,740
November 1990
-------
8-48
Environmental Investments
Footnotes to Table 8-11A
Total operating costs for present implementation of existing regulatory programs for all media for the years 1986-2000. Estimates are taken from the corresponding program totals of
the corresponding operating cost tables (those ending in "-2A" or "-2B") in each media chapter, starting with Table 3-2A and ending with Table 7-2A.
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-49
Table 8-12: TOTAL COSTS ASSUMING PRESENT IMPLEMENTATION BY FUNDING SOURCE ANNUALIZED AT 7%
(millions of 1986 dollars)
Funding Source/Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
A
EPA
A.3
Air
359
381
306
304
291
295
239
322
341
292
274
246
249
249
244
A.4
Water
415
550
1 ,073
1 ,166
1 ,683
2,193
2,587
2,993
3,536
3,878
4,170
4,381
4,537
4,771
5,001
A.5
Land
70
72
20
24
36
36
39
99
114
216
200
237
315
353
439
A.6
Chemicals
26
33
43
40
75
79
69
144
148
182
147
136
131
145
163
A. 7
Muiti-Media
108
139
193
203
263
443
488
402
434
412
365
343
358
371
393
A.8
Total EPA
978
1 ,174
1 ,636
1 , 738
2,348
3,046
3,423
3,960
4,574
4,981
5,155
5,342
5,591
5,890
6,240
A.9
Percentage of Total
3.69
3.88
4.87
4 . 72
5.65
6.55
6.78
7.22
7.89
8.23
8.42
8.16
8 .00
7.96
7.80
B
Non-EPA Federal
B 3
Air
419
402
401
453
542
445
455
413
428
445
485
573
61 7
B 4
Water
87
98
356
446
508
524
574
591
630
620
687
733
735
81 7
914
B 5
Land
85
119
119
118
114
125
127
1 79
208
215
256
353
360
B 6
Chemicals
13
53
67
187
285
184
148
77
85
124
189
B. 7
Multi-Media
268
384
465
476
416
485
434
282
242
349
299
316
525
B 8
Total Non-EPA Federal
87
98
1 ,129
1 ,352
1 ,507
1 ,624
1 ,713
1 ,832
1 ,932
1 ,678
1 ,712
1 ,819
1 ,861
2,184
2,605
B 9
Percentage of Total
0.33
0.33
3.36
3.67
3.62
3.49
3.39
3.34
3.33
2 . 77
2.80
2 . 78
2.66
2.95
3.25
C
State Government
C 3
Air
359
393
447
419
434
489
544
613
677
690
731
787
836
902
984
C 4
Water
1 ,183
1 ,154
1 ,164
1 ,278
1 ,334
1 ,351
1 ,360
1 ,412
1 ,530
1 ,611
1 ,588
1 ,578
1 ,670
1 , 780
1 ,926
C 5
Land
0
6
12
23
31
40
C 6
Chemicals
0
0
0
1
1
3
12
25
23
19
18
1 7
1 7
18
1 7
C 8
Total State Govt
1 ,542
1 ,548
1 ,612
1 ,698
1 , 769
1 ,842
1 ,916
2,051
2,230
2,320
2,343
2,394
2,546
2,731
2,967
C 9
Percentage of Total
5.82
5.11
4.80
4.61
4.26
3.96
3.80
3 . 74
3.85
3.83
3.83
3.66
3.64
3.69
3 . 71
D
n "5
Local Government
A i r
U . o
D 4
Water
4,143
4,621
5,228
5,869
6,416
6, 793
7,139
7,597
8,188
8,981
9,725
10,328
10,800
11,380
12,238
D 5
Land
3,530
3,629
3,768
3,931
3,960
4,144
4,404
4,538
4,669
4,777
4,899
5,043
5,355
5,711
6,056
D 6
Chem i ca1s
6
D 7
Multi-Media
D 8
Total Local Govt
7,673
8,250
8,996
9,801
10,376
10,937
11,542
12,135
12,857
13,758
14,624
15,371
16,155
17,091
18,301
D 9
Percentage of Total
28.98
27.26
26.76
26.60
24.96
23.52
22.86
22.13
22.18
22 . 73
23.88
23.48
23.10
23 .09
22.86
E
Pr i vate
E 3
Air
7,217
8,824
9,009
10,031
11,559
13,224
14,673
15,753
16,380
17,002
17,412
19,302
20,754
21 , 787
23,586
E 4
Water
4,084
5,060
5,617
6,367
7,478
8,531
9,418
10,377
10,861
11 ,435
11,701
12,744
13,543
14,393
15,285
E 5
Land
4,835
5,197
5,475
5,716
6,274
7,032
7,363
8,220
8,701
8,959
7,892
8,124
9,023
9,460
10,615
E 6
Chemicals
65
110
139
140
261
273
434
496
433
406
398
380
452
485
447
E 7
Multi-Media
E 8
Total Private
16,201
19,191
20,241
22,254
25,572
29,060
31 ,887
34,846
36,376
37,802
37,403
40,550
43,772
46,125
49,933
E 9
Percentage of Total
61 .18
63.42
60.22
60.40
61 .51
62.48
63.17
63.56
62 . 75
62.44
61 .08
61 .93
62.60
62.31
62.38
F
Total Costs
26,481
30,261
33,614
36,842
41,572
46,509
50,482
54,824
57,969
60,539
61 ,237
65,477
69,925
74,021
80,046
November 1990
-------
8-50
Environmental Investments
Footnotes to Table 8-12
Total annualized costs for implementing existing and new regulations for all media by funding source for the years 1972-1986. Estimates are taken from the corresponding program totals
of the corresponding seven percent annualized cost tables (those ending "-3") in each media chapter, starting with Table 3-3 and ending with Table 7-3.
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-51
Table 8-12A: TOTAL COSTS ASSUMING PRESENT IMPLEMENTATION BY FUNDING SOURCE ANNUALIZED AT 7%
(millions of 1986 dollars)
Funding Source/Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
A
EPA
A
3
Air
244
268
235
245
260
328
251
249
247
245
243
241
239
238
236
A
4
Water
5,001
5,243
5,438
5,596
5,805
5,971
6,036
6,102
6,130
6,123
6,117
6,110
6,103
6,096
6,090
A
5
Land
439
682
841
996
1 ,108
1 ,258
1 ,431
1 ,613
1 ,802
2,002
2,211
2,429
2,657
2,893
3,139
A
6
Chemicals
163
1 75
181
239
212
206
215
225
236
246
257
268
278
289
301
A
7
Multi-Media
393
389
424
434
481
528
499
514
529
544
559
580
601
622
643
A
8
Total EPA
6,240
6, 758
7,118
7,509
7,865
8,291
8,432
8,703
8,944
9,161
9,386
9,628
9,879
10,139
10,409
A
9
Percentage of Total
7.80
7.92
8 .04
7.96
7.88
7 . 73
7.45
7.39
7.42
7.33
7.26
7.19
7 .08
7 .07
7 .04
B
Non-EPA Federal
B
3
Air
61 7
645
689
733
778
824
870
916
953
987
1 ,022
1 ,060
1 ,100
1 ,140
1 ,182
B
4
Water
914
967
1 ,045
1 ,128
1 ,218
1 ,313
1 ,414
1 ,522
1 ,635
1 , 754
1 ,879
2,009
2,146
2,289
2,437
B
5
Land
360
450
515
908
1 ,199
1 ,593
2,584
3,239
3,890
4,423
4,914
5,464
6,016
6,570
7,126
B
6
Chemicals
189
135
136
139
141
146
149
154
159
164
1 71
1 77
182
182
188
B
7
Multi-Media
525
453
479
504
528
551
574
597
619
642
663
681
703
721
738
B
8
Total Non-EPA Federal
2,605
2,649
2,863
3,412
3,865
4,427
5,591
6,427
7,256
7,970
8,648
9,392
10,146
10,902
11,670
B
9
Percentage of Total
3.25
3.11
3.24
3.62
3.87
4.13
4.94
5.46
6.02
6.37
6.69
7 .01
7.27
7.60
7.89
C
State Government
C
3
Air
984
1 ,010
1 ,013
1 ,044
1 ,073
1 ,099
1 ,107
1 ,109
1 ,108
1 ,106
1 ,095
1 ,076
1 ,056
1 ,026
983
C
4
Water
1 ,926
1 ,942
1 ,949
2,010
2,072
2,135
2,199
2,265
2,331
2,398
2,467
2,536
2,604
2,670
2,735
C
5
Land
40
57
83
115
149
189
231
279
327
384
444
510
579
653
732
C
6
Chemicals
1 7
16
16
24
20
21
21
25
22
23
24
25
29
26
27
C
8
Total State Govt
2,967
3,025
3,061
3,193
3,313
3,444
3,558
3,678
3,788
3,911
4,030
4,147
4,269
4,375
4,476
C
9
Percentage of Total
3 . 71
3.55
3.46
3.39
3.32
3.21
3.15
3.12
3.14
3.13
3.12
3.10
3 .06
3 .05
3 .03
D
Pi
O
Local Government
A i r
U
D
o
4
Water
12,238
12,854
13,400
14,020
14,653
15,427
16,239
16,974
17,729
18,568
19,328
20,033
20,781
21,462
22,025
D
5
Land
6,056
6,308
6,238
6,554
6,867
7,505
7,896
8,286
8,532
8,738
8,974
9,210
9,492
9,710
9,945
D
6
Chemicals
6
80
158
221
363
504
568
568
568
568
568
568
568
568
7 Multi-Media
8 Total Local Govt
9 Percentage of Total
E Private
18,301
22.86
19,162
22.47
14
19,733
22.30
20,770
22 .03
21,779 23,333 24,678
21 .81 21 .76 21 .81
25,867 26,868 27,913
21.96 22.29 22.32
22.35
29,850
22.28
30,879 31,778 32,577
22.13 22.16 22.03
E
3
Air
23,586
25,083
25,654
26,245
25,918
27,237
27,990
28,454
28,813
30,224
31 ,545
32,639
33,829
34,682
35,990
E
4
Water
15,285
16,525
16,659
17,508
18,344
19,253
19,942
20,599
21 ,256
21 ,919
22,553
23,162
23,768
24,348
24,889
E
5
Land
10,615
11,595
12,642
14,441
17,224
19,208
20,813
21 ,830
21 ,284
21 ,611
21 ,859
22,633
24,195
24,563
25,206
E
6
Chemicals
447
493
497
695
985
1 ,149
1 ,241
1 ,376
1 ,423
1 ,470
1 ,560
1 ,619
1 ,663
1 733
1 ,808
E
7
Multi-Media
263
507
556
878
878
878
878
878
878
878
878
878
878
E
8
Total Private
49,933
53,696
55,715
59,396
63,027
67,726
70,864
73,137
73,654
76,101
78,395
80,932
84,333
86,203
88,772
E
9
Percentage of Total
62.38
62.96
62.96
63 .00
63.12
63.16
62.64
62 .08
61 .12
60.85
60.60
60.42
60.45
60.12
60.02
F
Total Costs
80,046
85,290
88,490
94,280
99,850
107,221
113,123
117,811
120,510
125,056
129,368
133,948
139,507
143,396
147,904
November 1990
-------
8-52
Environmental Investments
Footnotes to Table 8-12A
Total annualized costs for implementing existing and new regulations for all media by funding source for the years 1986-2000. Estimates are taken from the corresponding program totals
of the corresponding seven percent annualized cost tables in each media chapter (Tables 3-3A, 3-3B, 4-3A, 5-3A, 5-3B, 6-3A, and 7-3A).
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-53
Table 8-12B: TOTAL COSTS ASSUMING PRESENT IMPLEMENTATION BY FUNDING SOURCE ANNUALIZED AT 3%
(millions of 1986 dollars)
Funding Source/Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
A
EPA
A.3
Air
359
381
306
304
291
295
239
322
341
292
274
246
249
249
244
A.4
Water
384
471
897
874
1 ,255
1 ,582
1 ,826
2,074
2,447
2,649
2,810
2,923
2,996
3,143
3,281
A.5
Land
70
72
20
24
36
36
39
99
114
215
194
225
292
318
395
A.6
Chemicals
26
33
43
40
75
79
69
144
148
182
147
136
131
145
163
A. 7
Muiti-Media
108
139
193
203
263
443
488
402
434
412
365
343
358
371
393
A.8
Total EPA
947
1 ,096
1 ,459
1 ,446
1 ,921
2,435
2,662
3,041
3,485
3,751
3,790
3,873
4,026
4,226
4,476
A.9
Percentage of Total
3.66
3 . 77
4.60
4.23
5 .03
5 . 75
5.84
6.20
6.78
7 .05
7.12
6.82
6.66
6.62
6.47
B
Non-EPA Federal
B 3
Air
416
395
389
438
524
424
431
385
398
413
451
537
578
B 4
Water
85
94
339
412
460
463
500
502
532
513
573
607
596
658
740
B 5
Land
84
116
115
113
108
119
120
1 71
200
205
240
329
325
B 6
Chemicals
13
53
67
184
281
180
143
72
80
118
181
B. 7
Multi-Media
268
384
465
475
413
481
429
274
231
336
284
298
505
B 8
Total Non-EPA Federal
85
94
1 ,106
1 ,307
1 ,442
1 ,541
1 ,612
1 , 710
1 , 793
1 ,524
1 ,545
1 ,633
1 ,650
1 ,940
2,330
B 9
Percentage of Total
0.33
0.32
3.49
3.82
3 . 78
3.64
3.54
3.49
3.49
2.86
2.90
2.88
2 . 73
3 .04
3.37
C
State Government
C 3
Air
354
383
432
398
407
452
500
559
609
608
634
678
716
774
847
C 4
Water
1 ,174
1 ,136
1 ,136
1 ,239
1 ,285
1 ,289
1 ,284
1 ,321
1 ,422
1 ,488
1 ,451
1 ,430
1 ,510
1 ,606
1 738
C 5
Land
0
5
10
20
27
35
C 6
Chemicals
0
0
0
1
1
3
12
25
23
19
18
1 7
1 7
18
1 7
C 8
Total State Govt
1 ,528
1 ,519
1 ,568
1 ,638
1 ,692
1 , 744
1 , 796
1 ,905
2,054
2,115
2,109
2,136
2,264
2,424
2,637
C 9
Percentage of Total
5.90
5.23
4.94
4 . 79
4.43
4.12
3.94
3.88
4 .00
3.97
3.96
3 . 76
3 . 74
3.80
3.81
D
Pi 1
Local Government
A i r-
u. ^
D 4
A 1 1
Water
4,005
4,379
4,901
5,465
5,963
6,300
6,598
7,000
7,515
8,227
8,888
9,389
9,768
10,262
11 ,012
D 5
Land
3,514
3,595
3,717
3,863
3,874
4,040
4,280
4,395
4,507
4,595
4,697
4,820
5,111
5,444
5,763
D 6
Chem i ca1s
6
D 7
Multi-Media
D 8
Total Local Govt
7,518
7,975
8,619
9,328
9,837
10,340
10,879
11,395
12,022
12,821
13,585
14,209
14,879
15,706
16,781
D 9
Percentage of Total
29 .03
27.46
27.16
27.26
25 . 75
24.42
23.89
23.22
23.38
24 .09
25.54
25 .04
24.61
24.59
24.26
E
Pr i vate
E 3
Air
7,074
8,487
8,481
9,243
10,516
11,927
13,122
13,932
14,295
14,651
14,816
16,480
17,669
18,490
20,086
E 4
Water
3,868
4,609
4,960
5,498
6,379
7,197
7,846
8,576
8,859
9,259
9,357
10,233
10,853
11,525
12,238
E 5
Land
4,815
5,153
5,404
5,621
6,155
6,887
7,192
8,018
8,468
8,695
7,602
7,808
8,675
9,072
10,181
E 6
Chemicals
65
110
139
140
261
273
433
496
433
405
397
378
446
476
435
E 7
Multi-Media
E 8
Total Private
15,823
18,359
18,985
20,503
23,311
26,284
28,593
31,021
32,054
33,010
32,172
34,899
37,643
39,563
42,940
E 9
Percentage of Total
61 .09
63.21
59.82
59.91
61 .02
62 .07
62 . 79
63.22
62.35
62 .02
60.47
61 .50
62.26
61 .95
62 .09
F
Total Costs
25,901
29,042
31 , 737
34,222
38,203
42,344
45,542
49,072
51,408
53,221
53,200
56,751
60,462
63,860
69,164
November 1990
-------
8-54
Environmental Investments
Footnotes to Table 8-12B
Total annualized costs for implementing existing and new regulations for all media by funding source for the years 1972-1986. Estimates are taken from the corresponding program totals
of the corresponding three percent annualized cost tables in each media chapter (Tables 3-3C, 4-3B, 5-3C, 6-3B, and 7-3B).
November 1990
-------
Total Costs and Major Sources of Uncertainty
Table 8-12C: TOTAL COSTS ASSUMING PRESENT IMPLEMENTATION BY FUNDING SOURCE ANNUALIZED AT 3%
(millions of 1986 dollars)
8-55
Funding Source/Media
1991
1992
1993
1995
1997
2000
A EPA
3
Air
244
268
235
245
260
328
251
249
247
245
243
241
239
238
236
4
Water
3,281
3,439
3,566
3,664
3,815
3,925
3,950
3,989
4,004
3,997
3,991
3,984
3,977
3,970
3,964
5
Land
395
616
743
868
953
1 ,070
1 ,205
1 ,346
1 ,491
1 ,643
1 ,800
1 ,964
2,134
2,309
2,490
6
Chemicals
163
1 75
181
239
212
206
215
225
236
246
257
268
278
289
301
7
Multi-Media
393
389
424
434
481
528
499
514
529
544
559
580
601
622
643
8
Total EPA
4,476
4,887
5,149
5,450
5,721
6,057
6,119
6,322
6,507
6,676
6,850
7,037
7,230
7,428
7,634
9
Percentage of Total
6.47
6.64
6.77
6.74
6.69
6.60
6.32
6.28
6.33
6.26
6.20
6.15
6.07
6.07
6.04
B Non-EPA Federal
B
3
Air
578
603
644
686
728
770
813
855
891
926
960
997
1 ,035
1 ,073
1,113
B
4
Water
740
773
828
887
950
1 ,01 7
1 ,087
1 ,161
1 ,239
1 ,321
1 ,406
1 ,495
1 ,588
1 ,685
1 , 785
B
5
Land
325
401
450
791
1 ,018
1 ,329
2,159
2,638
3,105
3,458
3,778
4,155
4,534
4,914
5,296
B
6
Chemicals
181
126
126
127
128
131
132
135
138
141
145
149
151
151
154
B
7
Multi-Media
505
433
458
482
506
529
551
574
597
619
641
661
682
702
720
B
8
Total Non-EPA Federal
2,330
2,335
2,506
2,974
3,330
3,775
4,743
5,364
5,970
6,465
6,930
7,457
7,991
8,525
9,068
B
9
Percentage of Total
3.37
3.17
3.29
3.68
3.90
4.11
4.90
5.33
5.81
6.06
6.28
6.52
6.71
6.97
7.18
C
State Government
C
3
Air
847
865
862
886
909
930
939
943
945
947
941
931
919
900
873
C
4
Water
1 , 738
1 , 740
1 , 730
1 , 775
1 ,820
1 ,867
1 ,913
1 ,961
2,009
2,058
2,107
2,157
2,206
2,254
2,301
C
5
Land
35
50
72
100
132
168
206
249
293
344
399
458
521
588
659
C
6
Chemicals
1 7
16
16
24
20
21
21
25
22
23
24
25
29
26
27
C
8
Total State Govt
2,637
2,670
2,680
2,786
2,881
2,986
3,079
3,179
3,269
3,371
3,472
3,571
3,676
3,768
3,860
C
9
Percentage of Total
3.81
3.63
3.52
3.44
3.37
3.25
3.18
3.16
3.18
3.16
3.14
3.12
3 .09
3 .08
3 .06
D
Pi
O
Local Government
A i r
U
D
o
4
Water
11 ,012
11,505
11,959
12,485
13,022
13,693
14,403
15,033
15,679
16,403
17,045
17,638
18,289
18,883
19,361
D
5
Land
5,763
5,987
5,892
6,168
6,441
6,979
7,288
7,629
7,838
8,008
8,207
8,406
8,633
8,815
9,014
D
6
Chemicals
6
80
136
1 76
295
414
478
478
478
478
478
478
478
478
D
7
Multi-Media
10
34
34
34
34
34
34
34
34
34
34
34
34
D
8
Total Local Govt
16,781
17,492
17,941
18,822
19,672
21,001
22,139
23,174
24,030
24,924
25,764
26,555
27,434
28,210
28,886
D
9
Percentage of Total
24.26
23 . 75
23.59
23.27
23 .02
22.88
22.87
23 .02
23.38
23.36
23.33
23.22
23 .05
23 .06
22.87
E
Pr i vate
E
3
Air
20,086
21,380
21,748
22,155
21,646
22,792
23,502
23,989
24,399
25,885
27,269
28,411
29,649
30,552
31 ,913
E
4
Water
12,238
13,297
13,256
13,933
14,603
15,357
15,896
16,407
16,920
17,443
17,941
18,419
18,903
19,367
19,797
E
5
Land
10,181
11,112
12,076
13,642
16,185
17,928
19,319
20,129
19,496
19,732
19,894
20,569
21 728
22,021
22,586
E
6
Chemicals
435
478
479
675
962
1 ,124
1 ,213
1 ,345
1 ,393
1 ,439
1 ,530
1 ,589
1 ,633
1 703
1 , 778
E
7
Multi-Media
216
450
458
780
780
780
780
780
780
780
780
780
780
E
8
Total Private
42,940
46,267
47,776
50,855
53,854
57,982
60,711
62,650
62,988
65,280
67,415
69,769
72,694
74,423
76,854
E
9
Percentage of Total
62 .09
62.82
62.82
62.87
63 .02
63.16
62 . 72
62.22
61 .29
61 .17
61 .05
60.99
61 .07
60.83
60.85
F
Total Costs
69,164
73,652
76,052
80,887
85,459
91,801
96,792
100,690
102,764
106,716
110,430
114,388
119,025
122,355
126,302
November 1990
-------
8-56
Environmental Investments
Footnotes to Table 8-12C
Total annualized costs for implementing existing and new regulations for all media by funding source for the years 1986-2000. Estimates are taken from the corresponding program totals
of the corresponding three percent annualized cost tables in each media chapter (Tables 3-3D, 3-3E, 4-3C, 5-3D, 5-3E, 6-3C, and 7-3C).
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-57
Table 8-12D: TOTAL COSTS ASSUMING PRESENT IMPLEMENTATION BY FUNDING SOURCE ANNUALIZED AT 10%
(millions of 1986 dollars)
Funding Source/Media
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
A
EPA
A.3
Air
359
381
306
304
291
295
239
322
341
292
274
246
249
249
244
A.4
Water
442
61 7
1 ,225
1 ,418
2,051
2,720
3,243
3,786
4,475
4,938
5,342
5,638
5,866
6,175
6,485
A.5
Land
70
72
20
24
36
36
39
99
114
21 7
205
247
335
383
476
A.6
Chemicals
26
33
43
40
75
79
69
144
148
182
147
136
131
145
163
A. 7
Muiti-Media
108
139
193
203
263
443
488
402
434
412
365
343
358
371
393
A.8
Total EPA
1 ,004
1 ,242
1 , 788
1 ,990
2,717
3,573
4,079
4,752
5,512
6,042
6,333
6,609
6,940
7,324
7,762
A.9
Percentage of Total
3 . 72
3.97
5 .08
5 .09
6.11
7.14
7.46
7.96
8.67
9 .05
9.30
9 .06
8.90
8.86
8.69
B
Non-EPA Federal
B 3
Air
422
409
411
466
557
463
476
436
453
473
514
605
650
B 4
Water
89
102
371
475
549
576
639
667
716
712
786
842
856
953
1 ,064
B 5
Land
87
122
123
122
119
130
133
186
215
223
270
374
390
B 6
Chemicals
13
53
68
190
288
188
152
81
90
130
195
B. 7
Multi-Media
268
384
466
478
418
487
438
290
250
360
313
331
541
B 8
Total Non-EPA Federal
89
102
1 ,148
1 ,390
1 ,562
1 ,695
1 ,800
1 ,937
2,051
1 ,811
1 ,856
1 ,979
2,042
2,394
2,841
B 9
Percentage of Total
0.33
0.33
3.26
3.56
3.51
3.39
3.29
3.24
3.23
2 . 71
2 . 73
2 . 71
2.62
2.90
3.18
C
State Government
C 3
Air
362
401
460
436
458
519
582
660
735
759
813
879
938
1 ,012
1 ,101
C 4
Water
1 ,191
1 ,171
1 ,189
1 ,312
1 ,377
1 ,404
1 ,425
1 ,491
1 ,623
1 , 71 7
1 , 706
1 , 705
1 ,808
1 ,929
2,088
C 5
Land
0
6
13
25
34
45
C 6
Chemicals
0
0
0
1
1
3
12
25
23
19
18
1 7
1 7
18
1 7
C 8
Total State Govt
1 ,554
1 ,572
1 ,650
1 , 749
1 ,835
1 ,926
2,019
2,176
2,381
2,496
2,543
2,614
2,788
2,993
3,250
C 9
Percentage of Total
5 . 76
5 .02
4.68
4.47
4.13
3.85
3.69
3.64
3 . 75
3 . 74
3 . 74
3.59
3.58
3.62
3.64
D
Pi
Local Government
A i r-
u. ^
D 4
A 1 1
Water
4,261
4,829
5,510
6,217
6,806
7,216
7,603
8,110
8,766
9,629
10,444
11 ,135
11 ,686
12,341
13,292
D 5
Land
3,545
3,657
3,811
3,989
4,033
4,233
4,508
4,659
4,807
4,931
5,071
5,232
5,561
5,937
6,305
D 6
O
Chem i ca1s
D
D 7
Multi-Media
D 8
Total Local Govt
7,806
8,486
9,321
10,206
10,839
11,449
12,111
12,769
13,573
14,560
15,515
16,367
17,247
18,278
19,603
D 9
Percentage of Total
28.94
27.11
26.46
26.12
24.38
22.87
22.14
21 .38
21 .35
21 .80
22 . 79
22.45
22.12
22.11
21 .95
E
Pr i vate
E 3
Air
7,337
9,109
9,456
10,696
12,437
14,314
15,974
17,281
18,129
18,971
19,585
21,664
23,333
24,543
26,510
E 4
Water
4,269
5,449
6,184
7,116
8,426
9,681
10,773
11,929
12,587
13,311
13,721
14,909
15,862
16,865
17,911
E 5
Land
4,852
5,235
5,536
5,796
6,374
7,155
7,509
8,391
8,899
9,184
8,138
8,391
9,319
9,789
10,984
E 6
Chemicals
65
110
139
140
261
273
434
497
434
406
400
382
457
492
457
E 7
Multi-Media
E 8
Total Private
16,524
19,903
21 ,315
23,747
27,498
31,424
34,690
38,098
40,049
41,872
41 ,844
45,346
48,971
51,689
55,863
E 9
Percentage of Total
61 .25
63.58
60.52
60.76
61 .86
62 . 76
63.42
63 . 78
63 .00
62 . 70
61 .45
62.19
62 . 79
62.52
62.54
F
Total Costs
26,978
31,305
35,222
39,082
44,451
50,067
54,699
59,732
63,566
66,781
68,091
72,916
77,988
82,679
89,318
November 1990
-------
8-58
Environmental Investments
Footnotes to Table 8-12D
Total annualized costs for implementing existing and new regulations for all media by funding source for the years 1972-1986. Estimates are taken from the corresponding program totals
of the corresponding ten percent annualized cost tables in each media chapter (Tables 3-3F, 4-3D, 5-3F, 6-3D, and 7-3D).
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-59
Table 8-12E: TOTAL COSTS ASSUMING PRESENT IMPLEMENTATION BY FUNDING SOURCE ANNUALIZED AT 10%
(millions of 1986 dollars)
Funding Source/Media
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
A
EPA
A
3
Air
244
268
235
245
260
328
251
249
247
245
243
241
239
238
236
A
4
Water
6,485
6, 799
7,051
7,261
7,520
7,735
7,836
7,924
7,963
7,957
7,950
7,943
7,936
7,930
7,923
A
5
Land
476
739
925
1 ,106
1 ,241
1 ,421
1 ,626
1 ,843
2,071
2,312
2,564
2,830
3,108
3,397
3,699
A
6
Chemicals
163
1 75
181
239
212
206
215
225
236
246
257
268
278
289
301
A
7
Muiti-Media
393
389
424
434
481
528
499
514
529
544
559
580
601
622
643
A
8
Total EPA
7,762
8,370
8,816
9,285
9,714
10,217
10,426
10,755
11,046
11,304
11 ,573
11,862
12,163
12,476
12,801
A
9
Percentage of Total
8.69
8 . 79
8.90
8 . 78
8.66
8.49
8.21
8.12
8.14
8 .03
7.95
7.87
7 . 75
7 . 73
7 . 70
B
Non-EPA Federal
B
3
Air
650
680
727
774
822
870
919
968
1 ,005
1 ,040
1 ,075
1,113
1 ,156
1 ,197
1 ,240
B
4
Water
1 ,064
1 ,134
1 ,231
1 ,336
1 ,448
1 ,569
1 ,697
1 ,832
1 ,976
2,127
2,286
2,453
2,627
2,810
3,000
B
5
Land
390
492
570
1 ,009
1 ,354
1 ,820
2,947
3,752
4,562
5,247
5,886
6,583
7,283
7,985
8,691
B
6
Chemicals
195
142
144
148
152
158
163
169
1 76
184
193
201
208
209
216
B
7
Multi-Media
541
470
497
522
547
570
593
616
638
661
681
699
720
738
752
B
8
Total Non-EPA Federal
2,841
2,919
3,169
3,789
4,323
4,986
6,318
7,337
8,357
9,259
10,121
11,050
11 ,993
12,938
13,899
B
9
Percentage of Total
3.18
3 .07
3.20
3.58
3.86
4.14
4.97
5.54
6.16
6.58
6.95
7.34
7.64
8 .02
8.36
C
State Government
C
3
Air
1 ,101
1 ,133
1 ,142
1 ,178
1 ,211
1 ,241
1 ,249
1 ,250
1 ,246
1 ,241
1 ,225
1 ,199
1 ,172
1 ,132
1 ,077
C
4
Water
2,088
2,117
2,137
2,212
2,289
2,367
2,446
2,526
2,608
2,692
2,777
2,862
2,947
3,028
3,109
C
5
Land
45
63
92
127
164
207
253
305
357
418
484
554
630
709
794
C
6
Chemicals
1 7
16
16
24
20
21
21
25
22
23
24
25
29
26
27
C
8
Total State Govt
3,250
3,329
3,388
3,541
3,683
3,836
3,969
4,106
4,234
4,375
4,509
4,641
4,777
4,895
5,006
C
9
Percentage of Total
3.64
3.50
3.42
3.35
3.29
3.19
3.12
3.10
3.12
3.11
3.10
3 .08
3 .04
3 .03
3 .01
D
n
O
Local Government
A i r
u
D
o
4
Water
13,292
14,013
14,638
15,339
16,055
16,917
17,816
18,641
19,489
20,427
21 ,289
22,089
22,921
23,676
24,312
D
5
Land
6,305
6,580
6,532
6,881
7,229
7,952
8,413
8,845
9,122
9,359
9,626
9,894
10,221
10,471
10,738
D
6
Chemicals
6
80
1 77
259
420
581
645
645
645
645
645
645
645
645
D
7
Multi-Media
18
42
42
42
42
42
42
42
42
42
42
42
42
D
8
Total Local Govt
19,603
20,593
21,268
22,440
23,584
25,331
26,851
28,173
29,297
30,472
31,601
32,670
33,829
34,833
35,736
D
9
Percentage of Total
21 .95
21 .63
21 .46
21 .23
21 .04
21 .05
21 .14
21 .28
21 .60
21 .66
21 . 72
21 .69
21 .55
21 .59
21 .48
E
Pr i vate
E
3
Air
26,510
28,176
28,915
29,661
29,486
30,950
31 735
32,179
32,492
33,839
35,105
36,158
37,305
38,114
39,377
E
4
Water
17,911
19,307
19,593
20,588
21,569
22,611
23,429
24,212
24,992
25,776
26,527
27,249
27,961
28,640
29,277
E
5
Land
10,984
12,006
13,122
15,121
18,110
20,301
22,091
23,285
22,815
23,219
23,541
24,401
26,309
26,741
27,452
E
6
Chemicals
457
506
512
713
1 ,005
1 ,171
1 ,265
1 ,401
1 ,449
1 ,495
1 ,586
1 ,645
1 ,688
1 758
1 ,833
E
7
Multi-Media
303
555
640
962
962
962
962
962
962
962
962
962
962
E
8
Total Private
55,863
59,995
62,445
66,639
70,809
75,995
79,481
82,039
82,709
85,291
87,721
90,414
94,225
96,216
98,902
E
9
Percentage of Total
62.54
63 .02
63 .02
63 .05
63.16
63.14
62.56
61 .96
60.98
60.62
60.28
60.02
60.02
59.63
59.46
F
Total Costs
89,318
95,206
99,086
105,693
112,114
120,364
127,045
132,410
135,643
140,700
145,525
150,636
156,988
161 ,357
166,345
November 1990
-------
8-60
Environmental Investments
Footnotes to Table 8-12E
Total annualized costs for implementing existing and new regulations for all media by funding source for the years 1986-2000. Estimates are taken from the corresponding program totals
of the corresponding ten percent annualized cost tables in each media chapter (Tables 3-3G, 3-3H, 4-3E, 5-3G, 5-3H, 6-3E, and 7-3E).
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-61
Table 8-13: PRIVATE CAPITAL COSTS OF AIR AND WATER POLLUTION CONTROL
(millions of 1986 dollars)
Med i a
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1
Pr i vate A i r
4,471
477
473
510
590
758
962
1 ,325
1 ,861
2,074
2,479
3,229
4,185
2
Private Water
4,686
496
484
504
567
727
91 7
1 ,231
1 ,902
2,089
2,363
3,162
3,399
3
Total Priv Ai r & Water
9,158
973
957
1 ,014
1 ,157
1 ,485
1 ,878
2,556
3,763
4,163
4,843
6,391
7,584
Table 8-13A: PRIVATE CAPITAL COSTS OF AIR AND WATER POLLUTION CONTROL
(millions of 1986 dollars)
Med i a
1972
1973 1974
1975
1976
1977
19
78 1979 198C
D 1981
1982
1983
1984
1985
1986
1
Pr i vate A i r
4,994
6,628 6,601
6,983
6,387
6,061
5,9
08 6,276 6,28S
3 5,860
5,508
4,425
4,433
4,207
4,090
2
Private Water
7,166
7,838 6,828
6,996
7,648
7,813
7,9
04 7,578 6,64(
D 5,737
5,510
5,495
5,904
5,854
5,835
3
Total Priv Ai r ;
k Water 12,160
14,466 13,429
13,979
14,035
13,874
13,8
13 13,854 1 2 , 92S
3 11,597
11 ,019
9,919
10,338
10,061
9,925
Table 8-13B: PRIVATE CAPITAL COSTS OF AIR AND WATER POLLUTION CONTROL
(millions of 1986 dollars)
Med i a
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
1
Pr i vate A i r
4,090
4,122
3,971
3,876
3,781
3,686
3,591
3,496
3,401
3,306
3,212
3,117
3,022
2,927
2,832
2
Private Water
5,835
5,917
5,425
5,279
5,132
4,986
4,840
4,694
4,548
4,402
4,256
4,110
3,964
3,818
3,672
3
Total Priv Ai r ;
k Water 9,925
10,039
9,395
9,154
8,913
8,672
8,431
8,190
7,949
7,708
7,467
7,227
6,986
6, 745
6,504
Footnotes to Tables 8-13, 8-13A, 8-13B
1959-1988: Private capital investment in stationary air and water pollution control. Source: Department of Commerce, Bureau of Economic Analysis (BEA).
1989-2000: Linear extrapolation of 1975-1988 data for air and 1976-1988 data for water.
November 1990
-------
8-62 Environmental Investments
Table 8-14: PRIVATE COSTS OF AIR AND WATER POLLUTION CONTROL ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Med i a
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1
Prv Ai r (i ncl 196
0-71)
8,080
8,796
8,949
9,830
11 ,126
12,389
13,514
13,867
14,111
14,485
14,559
15,712
16,443
16,948
17,867
2
Pr Ai r (not i nc 6
0-71)
5,872
6,588
6, 741
7,622
8,918
10,181
11,306
12,081
12,370
12,789
12,911
14,120
14,922
15,518
16,561
3
Di fference
2,208
2,208
2,208
2,208
2,208
2,208
2,208
1 , 786
1 , 741
1 ,696
1 ,648
1 ,593
1 ,521
1 ,430
1 ,305
4
Prv Wtr (incl 196
0-71)
5,754
6,716
7,252
7,977
9,060
10,092
10,952
11 ,879
12,338
12,878
13,113
14,137
14,913
15,731
16,586
5
Pr Wtr (not i nc 6
0-71)
3,939
4,900
5,437
6,161
7,245
8,277
9,137
10,064
10,522
11,062
11 ,298
12,321
13,098
13,916
14,771
6
Di fference
1 ,815
1 ,815
1 ,815
1 ,815
1 ,815
1 ,815
1 ,815
1 ,815
1 ,815
1 ,815
1 ,815
1 ,815
1 ,815
1 ,815
1 ,815
Table 8-14A: PRIVATE COSTS OF AIR AND WATER POLLUTION CONTROL ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Med i a
1986
1
987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
1
Prv Ai r (i ncl 196
;0-71)
17,867
18,
698
18,575
18,707
19,245
19
,441
19
,552
19,499
19,440
19,336
19,279
19,244
19,215
19,141
19,058
2
Pr Ai r (not i nc 6
10-71)
16,561
17,
568
17,642
18,007
18,850
19
,441
19
,552
19,499
19,440
19,336
19,279
19,244
19,215
19,141
19,058
3
D i fference
1 ,305
1 ,
130
934
700
395
4
Prv Wtr (incl 196
10-71)
16,586
17,
800
17,888
18,168
18,774
19
,369
19
,951
20,516
21,056
21,569
22,045
22,455
22,838
23,187
23,460
5
Pr Wtr (not i nc 6
10-71)
14,771
15,
985
16,073
16,730
17,376
18
,010
18
,632
19,243
19,842
20,429
21,004
21,567
22,119
22,658
23,187
6
Di fference
1 ,815
1 ,
815
1 ,815
1 ,438
1 ,398
1
,359
1
,318
1 ,273
1 ,214
1 ,140
1 ,041
888
719
529
274
Footnotes to Tables 8-14 and 8-14A by lines:
1. Private annualized costs for implementing existing regulations for stationary air. Capital cost estimates are taken from Tables 8-13, 8-13A, and 8-13B for the years 1959-2000,
annualized at 7 percent assuming a capital life of 20 years, and added to the operating cost estimates taken from the corresponding air operating cost tables (i.e., 3-2, 3-2A). The capital
stock shown for 1959 in Table 8-13 is assumed to have been invested in 1959, even though much of it presumably dates from earlier years.
2. Private annualized costs for implementing existing regulations for stationary air. Capital cost estimates are taken from Tables 8-13, 8-13A, and 8-13B for the years 1972-2000,
annualized at 7 percent assuming a capital life of 20 years, and added to the operating cost estimates taken from the corresponding air operating cost tables (i.e., 3-2, 3-2A).
3. Line 1 minus line 2.
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-63
4. Private annualized costs for implementing existing regulations for water quality. Capital cost estimates are taken from Tables 8-13, 8-13A, and 8-13B for the years 1959-2000,
annualized at 7 percent assuming a capital life of 30 years, and added to the operating cost estimates taken from the corresponding water operating cost tables (i.e., 4-2, 4-2A). The capital
stock shown for 1959 in Table 8-13 is assumed to have been invested in 1959, even though much of it presumably dates from earlier years.
5. Private annualized costs for implementing existing regulations for water quality. Capital cost estimates are taken from Tables 8-13, 8-13A, and 8-13B for the years 1972-2000,
annualized at 7 percent assuming a capital life of 30 years, and added to the operating cost estimates taken from the corresponding water operating cost tables (i.e., 4-2, 4-2A).
6. Line 4 minus line 5.
November 1990
-------
8-64 Environmental Investments
Table 8-14B: PRIVATE COSTS OF AIR AND WATER POLLUTION CONTROL ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Med i a
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1
Prv Ai r (i ncl 196
;0-71)
7,308
7,845
7,818
8,509
9,631
10,730
11,694
11,999
12,085
12,312
12,250
13,299
13,930
14,347
15,190
2
Pr Ai r (not i nc 6
;0-71)
5,736
6,272
6,246
6,937
8,059
9,157
10,122
10,727
10,845
11 ,104
11,077
12,165
12,847
13,329
14,261
3
Di fference
1 ,572
1 ,572
1 ,572
1 ,572
1 ,572
1 ,572
1 ,572
1 ,272
1 ,240
1 ,208
1 ,174
1 ,134
1 ,083
1 ,018
929
4
Prv Wtr (incl 196
10-71)
4,876
5,606
5,940
6,458
7,316
8,116
8,743
9,446
9,708
10,078
10,151
11 ,012
11 ,614
12,259
12,941
5
Pr Wtr (not i nc 6
10-71)
3,727
4,457
4,791
5,309
6,167
6,967
7,594
8,296
8,559
8,929
9,002
9,863
10,464
11 ,109
11 ,792
6
Di fference
1 ,149
1 ,149
1 ,149
1 ,149
1 ,149
1 ,149
1 ,149
1 ,149
1 ,149
1 ,149
1 ,149
1 ,149
1 ,149
1 ,149
1 ,149
Table 8-14C: PRIVATE COSTS OF AIR AND WATER POLLUTION CONTROL ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Med i a
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
1
Prv Ai r (i ncl 196
10-71)
15,190
15,960
15,786
15,880
16,403
16,612
16,761
16,794
16,821
IE
5,817
16,847
16,892
16,941
16,959
IE
5,969
2
Pr Ai r (not i nc 6
10-71)
14,261
15,156
15,121
15,382
16,122
16,612
16,761
16,794
16,821
IE
5,817
16,847
16,892
16,941
16,959
IE
5,969
3
D i fference
929
804
665
498
281
4
Prv Wtr (incl 196
10-71)
12,941
13,980
13,908
14,170
14,639
15,101
15,555
15,997
16,424
IE
5,834
17,221
17,566
17,894
18,200
1 i
3,458
5
Pr Wtr (not i nc 6
10-71)
11 ,792
12,831
12,759
13,260
13,754
14,241
14,720
15,192
15,656
IE
5,113
16,562
17,004
17,438
17,865
11
3,285
6
Di fference
1 ,149
1 ,149
1 ,149
910
885
860
835
806
769
722
659
562
455
335
1 73
Footnotes to Tables 8-14B and 8-14C by lines:
1. Private annualized costs for implementing existing regulations for stationary air. Capital cost estimates are taken from Tables 8-13, 8-13A, and 8-13B for the years 1959-2000,
annualized at 3 percent assuming a capital life of 20 years, and added to the operating cost estimates taken from the corresponding air operating cost tables (i.e., 3-2, 3-2A). The capital
stock shown for 1959 in Table 8-13 is assumed to have been invested in 1959, even though much of it presumably dates from earlier years.
2. Private annualized costs for implementing existing regulations for stationary air. Capital cost estimates are taken from Tables 8-13, 8-13A, and 8-13B for the years 1972-2000,
annualized at 3 percent assuming a capital life of 20 years, and added to the operating cost estimates taken from the corresponding air operating cost tables (i.e., 3-2, 3-2A).
3. Line 1 minus line 2.
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-65
4. Private annualized costs for implementing existing regulations for water quality. Capital cost estimates are taken from Tables 8-13, 8-13A, and 8-13B for the years 1959-2000,
annualized at 3 percent assuming a capital life of 30 years, and added to the operating cost estimates taken from the corresponding water operating cost tables (i.e., 4-2, 4-2A). The capital
stock shown for 1959 in Table 8-13 is assumed to have been invested in 1959, even though much of it presumably dates from earlier years.
5. Private annualized costs for implementing existing regulations for water quality. Capital cost estimates are taken from Tables 8-13, 8-13A, and 8-13B for the years 1972-2000,
annualized at 3 percent assuming a capital life of 30 years, and added to the operating cost estimates taken from the corresponding water operating cost tables (i.e., 4-2, 4-2A).
6. Line 4 minus line 5.
November 1990
-------
8-66 Environmental Investments
Table 8-14D: PRIVATE COSTS OF AIR AND WATER POLLUTION CONTROL ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Med i a
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1
Prv Ai r (i ncl 196
;0-71)
8,735
9,604
9,909
10,951
12,394
13,797
15,059
15,453
15,832
16,330
16,519
17,760
18,576
19,156
20,138
2
Pr Ai r (not i nc 6
;0-71)
5,987
6,856
7,161
8,204
9,646
11,049
12,311
13,231
13,665
14,219
14,468
15,779
16,683
17,376
18,514
3
Di fference
2,748
2,748
2,748
2,748
2,748
2,748
2,748
2,223
2,167
2,111
2,051
1 ,982
1 ,893
1 , 780
1 ,624
4
Prv Wtr (incl 196
10-71)
6,511
7,672
8,383
9,286
10,565
11 ,795
12,857
13,977
14,605
15,291
15,667
16,831
17,758
18,725
19,729
5
Pr Wtr (not i nc 6
10-71)
4,121
5,283
5,993
6,896
8,175
9,406
10,468
11 ,587
12,215
12,901
13,278
14,441
15,368
16,335
17,339
6
Di fference
2,390
2,390
2,390
2,390
2,390
2,390
2,390
2,390
2,390
2,390
2,390
2,390
2,390
2,390
2,390
Table 8-14E: PRIVATE COSTS OF AIR AND WATER POLLUTION CONTROL ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Med i a
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
1
Prv Ai r (i ncl 196
10-71)
20,138
21,022
20,943
21 ,107
21,658
21,842
21,920
21,795
21,662
21,474
21 ,343
21,241
21 ,145
20,994
20,831
2
Pr Ai r (not i nc 6
10-71)
18,514
19,616
19,781
20,236
21 ,166
21 ,842
21 ,920
21,795
21,662
21,474
21 ,343
21,241
21 ,145
20,994
20,831
3
D i fference
1 ,624
1 ,406
1 ,162
871
492
4
Prv Wtr (incl 196
10-71)
19,729
21,093
21,320
21 ,615
22,339
23,049
23,741
24,411
25,049
25,650
26,204
26,670
27,101
27,487
27,774
5
Pr Wtr (not i nc 6
10-71)
17,339
18,704
18,930
19,722
20,499
21,260
22,006
22,736
23,451
24,150
24,833
25,502
26,154
26,791
27,413
6
Di fference
2,390
2,390
2,390
1 ,893
1 ,840
1 , 789
1 , 735
1 ,675
1 ,598
1 ,501
1 ,370
1 ,168
947
696
361
Footnotes to Tables 8-14D and 8-14E by lines:
1. Private annualized costs for implementing existing regulations for stationary air. Capital cost estimates are taken from Tables 8-13, 8-13A, and 8-13B for the years 1959-2000,
annualized at 10 percent assuming a capital life of 20 years, and added to the operating cost estimates taken from the corresponding air operating cost tables (i.e., 3-2, 3-2A). The capital
stock shown for 1959 in Table 8-13 is assumed to have been invested in 1959, even though much of it presumably dates from earlier years.
2. Private annualized costs for implementing existing regulations for stationary air. Capital cost estimates are taken from Tables 8-13, 8-13A, and 8-13B for the years 1972-2000,
annualized at 10 percent assuming a capital life of 20 years, and added to the operating cost estimates taken from the corresponding air operating cost tables (i.e., 3-2, 3-2A).
3. Line 1 minus line 2.
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-67
4. Private annualized costs for implementing existing regulations for water quality. Capital cost estimates are taken from Tables 8-13, 8-13A, and 8-13B for the years 1959-2000,
annualized at 10 percent assuming a capital life of 30 years, and added to the operating cost estimates taken from the corresponding water operating cost tables (i.e., 4-2, 4-2A). The capital
stock shown for 1959 in Table 8-13 is assumed to have been invested in 1959, even though much of it presumably dates from earlier years.
5. Private annualized costs for implementing existing regulations for water quality. Capital cost estimates are taken from Tables 8-13, 8-13A, and 8-13B for the years 1972-2000,
annualized at 10 percent assuming a capital life of 30 years, and added to the operating cost estimates taken from the corresponding water operating cost tables (i.e., 4-2, 4-2A).
6. Line 4 minus line 5.
November 1990
-------
8-68
Environmental Investments
Table 8-15: TOTAL CAPITAL COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REGULATION
(millions of 1986 dollars)
Rpt
Media
1972
1973
1974
1975
1976
1977
1978
1979
1981
1982
1983
1985
3
3.1
3.1
3.1
3.1
3.1
3.2
3.2
3.2
3.2
3.3
3.3
3.3
1
3.3
3.3
1
1
1
1
1
2
2
2
2
2
3
3
3
3
4.3
5
5.1
5.1
5.1
5.1
5.2
5.2
5.2
337
5.2
A i r and Rad i at i on
Ai r
. 1 Existing Reqs 5,422 7,388
.2 New Regs
.3 FuI I ImpIementat i on
.4 Total Air 5,422 7,388
Rad i at i on
. 1 Exi sti nq Reqs
.2 New Reqs
.3 Total Radiation
A i r & Rad i at i on
. 1 Existinq Reqs 5,422 7,388
.2 New Reqs
.3 FuI I ImpIementat i on
.4 Total Air & Rad i at i on5 , 422 7,388
Water
Water Qua I i ty
.1 Existinq Reqs 12,721 12,761
.2 New Reqs
.3 FuI I ImpIementat i on
.4 Total Water Qua I ityl 2,721 12,761
Dr i nk i nq Water
. 1 Exi sti nq Reqs 736 772
.2 New Reqs
.3 FuI I ImpIementat i on
.4 Total Dri nki nq Water 736 772
Water
.1 Existinq
.2 New Reqs
3 Fu I I ImpIementat i on
4 Total Water
Land
So I i d Waste
1 Exi sti nq Reqs 1,345
2 New Reqs
3 Total Sol id Waste 1 ,345
Hazardous Waste
1 Existinq Reqs
2 New Reqs
3 Total Hazardous Waste
7,392 10,074 10,037 10,032
7,392 10,074 10,037 10,032
24
24
7,416 10,'
7,416 10,'
20
20
16
16
10,053 10,
10,053 10,
25
25
10,745 10,549 10,598 10,130 9,737
10,745 10,549 10,598 10,130 9,737
22 64 89 30 37
22 64 89 30 37
10,005 10,767 10,613 10
10,005 10,767 10,613 10
13,151 13,730 14,'
13,151 13,730 14,'
868 917
868 917
15,605 14,
15,605 14,
825
825
15,090 15,020 13
15,090 15,020 13
979 1,081 1
979 1,081 1
13,457 13,533 14,019 14,647 14,953 16,420 15,720 16,070 16,101 14
¦n
13,457 13,533 14,019 14,647 14,953 16,420 15,720 16,070 16,101 14
1 ,530
1 ,530
1 ,670
1 ,670
1 ,552
1 ,552
1 ,575
1 ,575
1 ,671
1 ,671
1 ,
1 ,
10,160 9,774
10,160 9,774
211 12,
211 12,
1 ,016
1 ,016
270 13,682
270 13,682
900 1,700
900 1,700
12,345
12,345
935
935
13,280
13,280
1 ,591
1 ,591
65
65
11,020
11,020
33
33
11,053
11,053
12,043
12,043
915
915
12,958
12,958
1 ,848
1 ,848
113
113
11,240 11,325
11,240 11,325
55
55
47
1
11,295 11,372
11,295 11,373
12,023 12,666
12,023 12,666
1,073 1,251
1,073 1,251
13,096 13,91 7
13,096 13,91 7
1,912 2,115
1,912 2,115
368 221
368 558
(continued on next page)
November 1990
-------
Total Costs and Major Sources of Uncertainty
Table 8-15 (cont'd): TOTAL CAPITAL COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REGULATION
(millions of 1986 dollars)
Rpt
Media
1972
1973
1974
1975
1976
1977
1979
5.3
5.3
5.3
5.3
5.4
LUST
Ex i st i ng
New Reas
Total
RCRA
5.4.1
5.4.2
5.4.3
Existinq Reqs
New Regs
Total RCRA
1 ,345
1 ,345
1 ,530
1 ,530
1 ,670
1 ,670
1 ,552
1 ,552
1 ,575
1 ,575
1 ,671
1 ,671
1 ,699
1 ,699
1 ,863
1 ,863
1
1
,906
,906
1 ,900
1 ,900
1 , 700
1 , 700
1 ,656
1 ,656
1 ,961
1 ,961
2,280
2,280
2,335
337
2,672
5.5
5.5.1
5.5.2
5.5.3
Superfund
Existing Regs
New Regs
Total Superfund
42
42
193
193
293
293
648
648
748
748
713
713
5.6
5.6.1
5.6.2
5.6.3
Land
Exi sti ng Regs
New Regs
Total Land
1 ,345
1 ,345
1 ,530
1 ,530
1 ,670
1 ,670
1 ,552
1 ,552
1 ,575
1 ,575
1 ,671
1 ,671
1 ,699
1 ,699
1 ,863
1 ,863
1
1
,906
,906
1 ,942
1 ,942
1 ,893
1 ,893
1 ,949
1 ,949
2,609
2,609
3,028
3,028
3,048
337
3,385
6
6.1
6.1 .1
6.1.2
6.1 .3
Chem i ca1s
Toxic Substances
Existing Regs
New Regs
Tota1 Toxi c Subs
2
2
48
48
83
83
27
27
1 7
1 7
59
59
31
31
136
136
153
153
162
162
6.2
6.2.1
6.2.3
Pest i c i des
Ex i st i ng Regs
Total Pesticides
6.3
6.3.1
6.3.2
6.3.3
Chem i ca1s
Exi sti ng Regs
New Regs
Total Chemicals
2
2
48
48
83
83
27
27
1 7
1 7
59
59
31
31
136
136
153
153
162
162
7
Multi-Media
4
19
45
13
42
68
120
76
79
109
84
46
8
8.3
8.4
Capital Costs
Tota1 Fu11 1mp1
Total Capital Costs
20,225
22,451
23,105
26,297
26,600
28,178
27,484
28,825
28
,715
27,036
25,870
25,113
26,864
27,656
28,884
Footnotes to Table 8-15
Sum of the capital costs shown in Tables 3-1, 4-1, 5-1, 6-1, and 7-1.
November 1990
-------
8-70
Environmental Investments
Table 8-15A: TOTAL CAPITAL COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REGULATION
(millions of 1986 dollars)
Rpt
Media
1987 1988
1990 1991 1992 1993
1994
1995
1996
1997
1999
2000
3
3.1
3.1.1
3.1.2
3.1 .3
3.1.4
A i r and Rad i at i on
Ai r
Existinq Reqs
New Regs
Fu I I rfnp I ementat i on
Total Air V
11,325 11,091 11,051 10,618 10,587 10,
10,750 10,779 10,758 10,791 10,778 10,769 10,758
'All
'573
'574
'203
'253
'257
'156
'186
'191
'197
'203
'210
'216
'223
325
11,568
11,624
11 ,192
10,790
10,880
10,905
10.
.876
10,936
10,970
10,955
10,995
10.
.988
10.
.985
10.
.981
47
1
48
56
4
60
56
34
90
66
79
145
72
79
151
77
94
1 71
82
89
1 71
87
93
180
92
98
190
98
103
201
103
107
210
108
112
220
113
117
230
118
122
240
124
127
251
372
1
11 ,147
481
11 ,107
607
10,684
653
10,658
282
10,704
347
10,730
346
10,
.808
249
10,843
284
10,876
294
10,861
304
10,899
315
10,
.891
327
10,
.887
338
10,
.882
350
3.2 Rad i at i on
3.2.1 Exi sti nq Reqs
3.2.2 New Reqs
3.2.3 Total Radiation
3.3 A i r & Rad i at i on
3.3.1 Exi sti nq Reqs
3.3.2 New Regs
3.3.3 Full dmpIementation
3.3.4 Total Air & Radiationll ,373 11,628 11,714 11,337 10,
11,051 11,076 11,057 11,126 11,1 71 11,165 11,215 11,218 11,225 11,232
Water
.1 Water Qua I ity
1.1 Exi sti nq Reqs 12,666
.1.2 New Regs
1.3 FuI I ImpIementati on
1.4 Total Water Qua I ity 12,666
.2 Dr i nk i ng Water
2.1 Exi sti ng Regs 1 ,251
2.2 New Regs
.2.3 Full rfnp I ementat i on
2.4 Total Drinking Water 1,251
.3 Water
3.1 Exi sti nq Reqs
3.2 New Regs
3.3 Full Implementation
3.4 Total Water
13,132 11,229 10,950 10,836 10,697 10,166 9,623
314 314 333 19 116
1,757 1,822 2,281 2,751
13,132 11,543 11,264 12,926 12,539 12,563 12,374
9,112 8,631
8,537 8,491 8,444 8,397
1,220 1,149
36
1 ,150
73
1,220 1,185 1,223
1 ,173
80
1 ,253
1,196 1,218
379 865
1,575 2,083
1 ,241
1 ,175
3,189
12,301
1 ,264
1 ,381
3,597
12,228
1 ,
1 ,
3,571
12,155
1 ,309
1 , 787
3,545
12,082
1 ,332
1 ,358
3,519
12,009
1 ,354
639
3,493
11 ,937
1 ,377
225
2,416 2,645 2,976 3,
5 Land
5.1 So I i d Waste
5.1.1 Exi sti nq Reqs
5.1.2 New Reqs
5.1.3 TotaI So I i d Waste
13,917
13,917
2,115
2,115
14,352 12,378 12,100 12,009
350 387 413
14,352 12,728 12,
11,893 11,385 10,864
398 981 1,1 75
1,757 1,822 2,281 2,751
14,1 79 14,113 14,646 14,790
10,375
1 ,381
3,189
14,946
9,917
1 ,690
3,597
15,204
2,169
2,169
1 ,
1 ,
1 ,
1 ,
2,012
2,012
2,027
2,105
4,132
2,041 2,056
2,607 1,379
4,648 3,435
2,070 2,085
1,379 1,379
3,449 3,464
5.2 Hazardous Waste
5.2.1 Exi sti nq Reqs 221
5.2.2 New Reqs 337
5.2.3 Total Hazardous Waste 558
372 434 1,279 1,550 1,954 3,620 3,827
130 1,338 1,170 1,379 391 382 125
502 1,772 2,449 2,929 2,345 4,002 3,952
4,118
411
4,529
3,
221
1 , 787
3,571
15,251
2,099
877
2,976
3,772
450
4,222
2,
1 ,358
3,545
14,772
2,114
877
2,991
3,827
904
4,731
639
3,519
14,002
2,128
877
3,005
3,882
210
4,092
9,821
225
3,493
13,539
2,143
877
3,020
3,
3,467
11,864
1 ,390
225
1,993 1,602 1,615
9,787
225
3,467
13,479
2,157
877
3,034
938 3,993
216 222
4,154 4,215
(continued on next page)
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-71
Table 8-15A (cont'd): TOTAL CAPITAL COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REGULATION
(millions of 1986 dollars)
Rpt
Media
1991
1992
1993
1995
1997
2000
5.3
5.3.1
5.3.2
5.3.3
LUST
Ex i st i ng
New Reqs
Total LOST
5.4 RCRA
5.4.1 Ex i st i ng
5.4.2 New Regs
5.4.3 TotaI rSr/
5.5 Superfund
5.5.1 Exi sti ng Regs
5.5.2 New Regs
5.5.3 Total Superfund
5.6 Land
5.6.1 Existing
5.6.2 New Regs
5.6.3 Total Land
6 Chemicals
6.1 Toxic Substances
6.1.1 Ex i st i ng
6.1.2 New Regs
6.1.3 Total Toxic Subs
6.2 Pesticides
6.2.1 Exi sti ng Regs
6.2.3 Total Pesticides
6.3 Chemicals
6.3.1 Existing
6.3.2 New Regs
6.3.3 Total Chem i cals
7 Multi-Media
8 Capital Costs
8.1 Total Existing
8.2 Total New Regs
8.3 Total FulI Imp I
8.4 Total Capital Costs
2,335
337
2,672
713
713
3,048
337
3,385
162
162
162
162
28,546
338
2,541 2,417
130 1,338
2,671 3,755
1 ,462
1 ,462
156
156
156
156
1 ,
1 ,
4,003 4,315
130 1,338
4,133 5,653
43 1 ,
29,702
611
29,857
2,294
5,250
5,250
3,277
6,420
9,697
2,781
2,781
6,420
12,478
143
8:
973
5,250
5,250
3,563
6,629
10,192
2,855
2,855
6,418
6,629
13,047
143
830
973
395
6,097
6,097
3,981
8,593
12,574
7,549
8,593
16,142
154
154
1 ,534
29,380
8,290
30,313 32,151 37,670
30,767
8,154
1 , 757
5,250
5,250
5,662
8,239
13,901
10,557
8,239
18,796
30,305
10,167
1 ,822
42,295
32,830
10,396
2,281
45,507
5,250
5,250
5,883
6, 754
12,637
5,500
5,500
11,383
6, 754
18,137
165
165
165
165
33,220
8,178
2,751
44,150
456
456
6,188
2,246
8,434
5,
5,
12,057
2,246
14,303
33,357
3,911
3,189
40,457
456
456
33,013
456
456
5,945 5,871
2,056 1,783
8,001 7,654
6,266
6,266
12,132 12,137
2,056 1,783
14,188 13,920
93
93
3,597
40,650
93
93
32,984
3,874
3,571
40,429
456
456
5,941
2,237
8,178
6,502
6,502
12,443
2,237
14,680
33,310
3,910
3,545
40,765
11,755
11 ,755
6,011
12,842
18,853
6, 746
6, 746
12,757
12,842
25,599
33,597
13,807
3,519
50,923
1 ,193
7,273
13,058
1 ,193
14,251
IT
IT
11'
11'
33,876
1 , 756
3,493
39,126
6,150
1 ,199
7,349
7,223
7,223
13,373
1 ,199
14,572
116
116
116
116
34,157
1 , 774
3,467
39,398
Footnotes to Table 8-15A
Sum of the capital costs shown in Tables 3-1A, 3-1B, 4-1A, 5-1A, 5-1B, 6-1A, and 7-1A.
November 1990
-------
8-72 Environmental Investments
Table 8-16: TOTAL OPERATING COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REGULATION
(millions of 1986 dollars)
Rpt
Sec Media 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986
3 Air and Rad i at i on
3.1 Air
3.1.1 Existing Regs 7,392 8,332 7,957 7,871 8,370 9,013 9,368 9,302 8,861 8,221 7,536 8,415 8,685 8,869 9,731
3.1.2 New Regs
3.1.3 Full Implementation
3.1.4 Total Air 7,392 8,332 7,957 7,871 8,370 9,013 9,368 9,302 8,861 8,221 7,536 8,415 8,685 8,869 9,731
3.2 Rad i at i on
3.2.1 Existing Regs 18 1 7 253 228 153 168 229 222 204 1 78 195 1 79 183 197 314
3.2.2 New Regs 0
3.2.3 Total Radiation 18 1 7 253 228 153 168 229 222 204 1 78 195 1 79 183 197 314
3.3 A i r & Rad i at i on
3.3.1 Existing Regs 7,409 8,349 8,210 8,099 8,523 9,180 9,597 9,524 9,065 8,399 7,731 8,594 8,868 9,066 10,045
3.3.2 New Regs 0
3.3.3 Full Implementation
3.3.4 Total Air& Radiation 7,409 8,349 8,210 8,099 8,523 9,180 9,597 9,524 9,065 8,399 7,731 8,594 8,868 9,066 10,045
4 Water
1 Water Qua I i ty
1.1 Existing Regs 8,085 8,547 9,328 9,771 10,772 11,330 11,644 12,121 12,526 13,026 13,191 13,976 14,413 15,119 16,109
1.2 New Regs
1.3 FuI I ImpIementat i on
1.4 Total Water Qua I ity 8,085 8,547 9,328 9,771 10,772 11,330 11,644 12,121 12,526 13,026 13,191 13,976 14,413 15,119 16,109
2 Dri nki ng Water
2.1 Existing Regs 732 741 774 824 899 979 1,073 1,180 1,238 1,353 1,41 7 1,442 1,471 1,549 1,645
2.2 New Regs
2.3 Full Implementation
2.4 Total Drinking Water 732 741 774 824 899 979 1,073 1,180 1,238 1,353 1,417 1,442 1,471 1,549 1,645
3 Water
3.1 Existing Regs 8,817 9,288 10,102 10,596 11,672 12,309 12,717 13,301 13,764 14,379 14,608 15,419 15,884 16,668 17,753
3.2 New Regs
3.3 Full Implementation
4.3.4 Total Water 8,817 9,288 10,102 10,596 11,672 12,309 12,717 13,301 13,764 14,379 14,608 15,419 15,884 16,668 17,753
5 Land
5.1 So I i d Waste
5.1.1 Existing Regs 8,309 8,626 8,919 9,215 9,665 10,448 10,878 11,763 12,213 12,356 11,260 10,947 11,830 12,344 13,254
5.1.2 New Regs
5.1.3 Total Sol id Waste 8,309 8,626 8,919 9,215 9,665 10,448 10,878 11,763 12,213 12,356 11,260 10,947 11,830 12,344 13,254
5.2 Hazardous Waste
5.2.1 Existing Regs 182 147 677 828 958 1,139
5.2.2 New Regs
167
5.2.3 Total Hazardous Waste 182 147 677 828 958 1,306
(continued on next page)
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-73
Table 8-16 (cont'd): TOTAL OPERATING COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REGULATION
(millions of 1986 dollars)
Rpt
Media
1972
1973
1974
1975
1976
1977
1979
5.3
5.3
5.3
5.3
5.4
5.4.
5.4
167
5.4.
5.5
5.5.
5.5
5.5.
5.6
5.6.
5.6.
5.6.
6.2
6.2
6.2
6.3
6.3
6.3
6.3
7
LUST
Ex i st i ng
New Reqs
Total L0ST
RCRA
Ex i st i ng
New Regs
Total RCRA
Superfund
1 Ex i st i ng I
2 New Regs
3 Total Superfund
Land
1 Existing
2 New Regs
3 Total Land
Chem i caIs
Toxic Substances
Ex i st i ng
New Regs
TotaI Toxi c Subs
Pest i c i des
Existing Regs
Total Pesticides
Chem i caIs
Exi sti ng
New Regs
3 Total Chem i cals
Multi-Media
8 Operating Costs
8.3 Total FuI I ImpI
,309
8,626
8,919
9,215
9,665
10,448
10,878
11,763
12,213
12,538
11,407
11,624
12
,658
13,301
14
,394
,309
8,626
8,919
9,215
9,665
10,448
10,878
11,763
12,213
12,538
11,407
11,624
12
,658
13,301
14
,561
12
40
69
140
157
191
12
40
69
140
157
191
,309
8,626
8,919
9,215
9,665
10,448
10,878
11,763
12,213
12,550
11,447
11,693
12
, 798
13,458
14
,585
167
,309
8,626
8,919
9,215
9,665
10,448
10,878
11,763
12,213
12,550
11 ,447
11,693
12
, 798
13,458
14
, 752
9
5
9
47
154
332
414
350
293
212
207
251
329
9
5
9
47
154
332
414
350
293
212
207
251
335
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
92
143
183
181
349
408
578
840
874
774
690
585
647
721
748
92
143
183
181
349
408
578
840
874
774
690
585
647
721
b
754
108
139
461
587
726
913
896
875
850
665
570
648
603
625
851
, 735
26,545
27,876 ;
18,618
30,936
33,258
34,666
36,303
36,767
36,768
35,046
36,939
38
,800
40,538
44
,155
Footnotes to Table 8-16
Sum of the operating costs in Tables 3-2, 4-2, 5-2, 6-2, and 7-2.
November 1990
-------
8-74
Environmental Investments
Table 8-16A: TOTAL OPERATING COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REGULATION
(millions of 1986 dollars)
Rpt
Media
1
1
1991
1992
1993
1995
1997
2000
3
3.1
3.1.1
3.1.2
3.1.3
3.1.4
3.2
3.2.1
3.2.2
3.2.3
3.3
3.3.1
3.3.2
3.3.3
3.3.4 Tot
A i r and Rad i at i on
Ai r
Existinq Reqs 9,731 10,427 I1
New Regs
Fu I I I Hip I ementat i on
Total Air 9,731 10,427 11
Rad i at i on
Exi stinq Reas 314 281
New Reas 0 0
Total Radiation 314 281
at i on
mt & R;
Exi sti n
New Reg
FulI Implementation
r " r^--J: : --
10,045 10,
0
ationl0,045 10.
Water
.1 Water Qua I ity
1.1 Ex i st i nq Regi 16,1'
1.2 New Regs
1.3 Fu I I I trip I ementat i on
1.4 Total Water Qual ity16,T
.2
.2.1
.2.2
.2.3
.2.4
.3
.3.1
3.2
3.3
Dr i nk i nq Water
Exi sti nSj Regs 1 , 645
New Regs
Fu I I rfnp I ementat i on
Total Drinking Waterl,645
Water
Exi sti ng
New Regs
Ful I I nip I ementat ion
4.3.4 Total Water
5
5.1
5.1.1
5.1.2
5.1.3
Land
So I i d Waste
Ex i st i nc
New ReqJ
Total Sol id Waste
5.2 Hazardous Waste
5.2.1 Exi sti nq Reqs
5.2.2 New Reqs
5.2.3 Total H§z. Waste
13,254
13,254
1 ,139
167
1 ,306
17,'
17,'
1 ,661
1 ,661
17,753 18,746
14,035
14,035
1 7
297
3
300
1 ,
1 ,
18,573
91
17,753 18,746 1
13,463
13,463
1,312 1,435
262 1,323
1,574 2,758
9,747
169
10,363 1'
20
322
8
330
068
1 77
1 ,560
1 78
19,092
320
19,412
13,738
13,738
1 ,688
1 ,355
3,043
637
186
9,916 8,823 9
10,383 10,246 9
14
362
200
185
16,973 1 7,532 18,141
2 142 291
1 76
16,975 17,674 18,608
1 ,613
1 79
19,754
470
1 76
20,399
14,012
14,012
1 ,853
1 , 723
3,576
.043
437
370
20
413
457
18,718
519
358
19,595
1 ,
319
1,738 1,792 1,
20,381
838
358
21,577
14,286
196
14,482
2,070
2,710
302
561
391
25
41 7
19,218
529
1 , 729
519
2,248
20,947
1 ,048
14,559
273
14,832
2,493
3,297
5,790
414
31
445
10,053
679
4,368
15,100
, 772
562
20,333 21,195
1 ,
21 ,552
1 ,142
22,581 23,555
14,832
395
15,227
2,660
3,417
6,077
437
36
473
20,326
562
1 ,180
22,068
1 ,832
691
22,158
1 ,253
1 ,180
24,591
15,106
516
15,622
2,841
3,549
6,390
9,639 9,992
14,655 15,170 16,997
10,342
2,1
459
42
502
10,429 10,8'
816 2,1'
4,398 4,5
15,643 17,4
20,880
562
1 ,540
22,982
1 ,
2,360 2,523 2,761
22,764
1 ,440
1 ,540
25,743
15,379
516
15,895
2,926
3,673
6,599
10,657
3,266
5,012
18,935
530
11 ,139
3,314
5,012
19,465
21 ,434
562
1 ,897
23,893
1 ,935
953
2,888
23,369
1 ,515
1 ,897
26,781
15,653
516
16,169
3,039
3,347
10,995
4,139
5,434
20,568
505
53
558
11,499
4,192
5,434
21 ,126
21 ,988
562
2,251
24,802
1 ,
23,975
1 ,552
2,251
27,778
15,926
516
16,442
3,178
3,498
6,676
11 ,313
5,136
5,854
22,303
527
59
587
11 ,840
5,195
5,854
22,889
22,542
562
2,603
25,708
2,038
1 ,143
2,976 3,1
24,580
1 , 705
2,603
16,200
516
16,716
3,318
3,622
11 ,614
5,796
6,276
23,686
550
65
615
12,164
5,861
6,276
24,301
23,096
562
2,953
26,611
2,'
1 ,259
25,186
1 ,821
2,953
29,960
11,895
6,937
6,554
25,386
573
71
12,468
7,008
6,554
26,030
23,650
562
3,299
27,512
2,119
1 ,259
3,349 3,379
25,770
1 ,821
3,299
30,890
16,473 16,747
516 516
16,989 17,263
3,457 3,597
3,746 3,833
7,203 7,430
(continued on next page)
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-75
Table 8-16A (cont'd): TOTAL OPERATING COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REGULATION
(millions of 1986 dollars)
Rpt
Media
1991
1992
1993
1995
1997
2000
5.3 LUST
5.3.1 Ex i st i nq
5.3.2 New Req§
5.3.3 TotaI L0ST
5.4 RCRA
5.4.1 Exi sti nq Reqs
5.4.2 New Reqs
5.4.3 TotaI R^RA
5.5 Superfund
5.5.1 Ex i st i nq I
5.5.2 New Regs
5.5.3 Total Superfund
5.6 Land
5.6.1 Existinq
5.6.2 New Reqs
5.6.3 Total L§nd
6.1
6.1
6.1
6.1
6.2
6.2
6.2
6.3
6.3
6.3
6.3
7
8.1
8.2
8.3
14,394
167
14,561
191
191
585
167
752
Chem i caIs
Toxic Substances
. 1 Ex i st i nq
. 2 New Reqs
.3 TotaI Tbxi c Subs
Pest i c i des
.1 Exi sti nq Reqs
.3 Total Pesticides
Chem i caIs
. 1 Existinc
.2 New ReqJ
.3 Total Chem i cals
Multi-Media
Total
Total
New Reqs
FulI.Imp I
13
13
15,348 14,911
262 1,323
15,610 16,234
353
353
447
447
30
15,455
2,213
17,668
641
641
30
2,338
2,368
15,895
4,061
19,956
41
2,338
2,379
16,396
5,244
21,640
15,701 15,358
262 1,323
15,963 16,681
2,213
18,309
767
767
16,662
4,061
20,723
17,295
5,244
22,539
52
2,364
2,416
17,104
5,934
23,038
1 ,197
1 ,197
18,301
5,934
24,235
62
2,365
2,427
17,554
6,177
23,731
1 ,376
1 ,376
18,930
6,177
25,107
72
18,018
5,059
23,077
1 ,514
1 ,514
19,532
5,059
24,591
581
662
4,770
23,156
1 ,656
1 ,656
20,042
4,770
24,812
91
581
672
18,783
4,444
23,227
1 , 757
1 , 757
20,540
4,444
24,984
101
582
19,205
4,596
23,801
111
583
120
267
387
19,628 20,051
4,721 4,529
24,349 24,580
1 ,
1 ,
21 ,100
4,596
25,696
2,'
2,'
2,1
2,1
21,666 22,237
4,721 4,529
26,387 26,766
130
267
397
20,474
4,616
25,090
2,342
2,342
22,816
4,616
27,432
329
283
278
285
250
293
297
303
306
311
31 7
322
328
334
339
6
80
84
68
132
195
305
307
308
349
352
355
358
361
335
283
358
369
318
425
492
608
613
619
666
674
683
692
700
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
748
736
733
982
1 ,229
1 ,378
1 ,467
1 ,560
1 ,610
1 ,664
1 , 723
1 , 788
1 ,844
1 ,915
1 ,997
6
80
84
68
132
195
305
307
308
349
352
355
358
361
754
736
813
1 ,066
1 ,297
1 ,510
1 ,662
1 ,865
1 ,917
1 ,972
2,072
2,140
2,199
2,273
2,358
851
772
930
1 ,196
1 ,172
1 ,563
1 ,557
1 ,594
1 ,632
1 ,670
1 , 708
1 , 751
1 , 795
1 ,839
1 ,883
982 <
16,663
45,957
47,434
47,802
50,030
51,966
53,690
55,362
56,942
58,479
60,113
61,726
63,342
64,934
1 73
262
1 ,514
2,795
4,799
6,670
7,763
8,303
7,436
8,626
9,622
10,692
11 ,976
12,569
13,806
1 76
358
586
5,229
5,578
6,129
6,909
7,685
8,457
9,229
9,853
155 <
16,925
47,470
50,228
52,777
57,059
60,315
67,222
68,375
71,696
75,010
78,491
82,159
85,140
88,593
Footnotes to Table 8-16A
Sum of the operating costs in Tables 3-2A, 3-2B, 4-2A, 5-2A, 5-2B, 6-2A, and7-2A.
November 1990
-------
8-76
Environmental Investments
Table 8-17: TOTAL COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REGULATION ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Media
1972
1 973 1 974 1 975 1 976 1 977
1
1 979 1
1
1
1
1
1
1
3
3.1
3.1
3.1
3.1
3.1
3.2
3.2
3.2
3.2
3.3
3.3
3.3
3.3
3.3
1
1
1
1
1
2
2
2
2
2
3
3
3
3
4.3
5
5.1
5.1
5.1
5.1
5.2
5.2
5.2
5.2
A i r and Rad i at i on
Ai r
1 Exi sti nq Reqs 7,
2 New Regs
3 FuI I ImpIementat i on
4 Total Air 7,
Rad i at i on
1 Ex i st i ng
2 New Regs
3 Total Radiation
A i r & Rad i at i on
1 Exi sti ng Regs 7,
2 New Regs
3 Fu I I ImpIementat i on
4 Total Air & Radiation 7.
Water
Water Qua I i ty
Existing Regs S
New Regs
Fu I I ImpIementat i on
Total Water Qua I ity S
916
916
18
18
934
934
110
110
9,581
9,581
1 7
1 7
Dr i nk i ng Water
1 Existing Regs 802
2 New Regs
3 FuI I I mpIementat i on
4 Total Drinking Water 802
Water
1 Existing Regs 9,912
2 New Regs
3 FuI I I mpIementat i on
4 Total Water 9,912
Land
So I i d Waste
1 Exi sti ng Regs 8,436
2 New Regs
3 Tota I Sol i d Waste 8, 436
Hazardous Waste
1 Existing Regs
2 New Regs
3 Total Hazardous Waste
11
11
,927 10,925 12,528 14,287 15,761 16,902 17,635 18,1
,927 10,925 12,528 14,287 15,761 16,902 17,635 18,1
18,624 20,573 22,1'
18,624 20,573 22,1'
255
255
232
232
10,182 11,156 12,
10,182 11,156 12,
1 73
1 73
14,460 15,
14,460 15,
237
237
232
232
17,134 17,
17,134 17,
219
219
201
201
18,397 18,
18,397 18,
220
220
207
207
12,441 13,991 16,125 1 7,9'
12,441 13,991 16,125 1 7,9'
998 1,135 1,294 1,451 1,623 1,823 1,
998 1,135 1,294 1,451 1,623 1,823 1,
13,439 15,126 1 7,419 19,391 21,
13,439 15,126 1 7,419 19,391 21,
19,455 21,147 22,763 24,328 25,514 27,294
19,455 21,147 22,763 24,328 25,514 27,294
2,1
2,1
2,357 2,471
2,357 2,471
790 10,389 11,330 11,920 12
790 10,389 11,330 11,920 12
(continued on next page)
13,612 13,934 12,998
13,612 13,934 12,998
182 147
182 147
23,279 25,077
23,279 25,077
215
215
233
233
22,970 24,745 26,525 27,871 29,765 31,
22,970 24,745 26,525 27,871 29,765 31,
12,835 13
12,835 13
1 ,'
1 ,'
354
0
355
20,780 22,324 23,513 25,431
0
20,780 22,324 23,513 25,431
,700 30,376 32,386
,700 30,376 32,386
,586 2,765 2,979
,586 2,765 2,979
33,141 35,365
33,141 35,365
14,587 15,697
14,587 15,697
1 ,212
199
1 ,410
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-77
Table 8-17 (cont'd): TOTAL COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REG ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Media
1972
1973
1974
1975
1976
1977
1979
5.3
5.3
5.3
5.3
5.4
5.4.
5.4.
5.4.
5.5
5.5.
5.5
5.5.
5.6
5.6.
5.6.
5.6.
6.1
6.1
6.1
6.1
6.2
6.2
6.2
6.3
6.3
6.3
6.3
7
8.3
LUST
1 Ex i st i nq Reqs
2 New Reqs
3 Total L0ST
RCRA
1 Ex i st i nq
2 New Reqs
3 Total RCR/
Superfund
1 Existinq Reqs
2 New Reqs
3 Total Superfund
Land
1 Existinq
2 New Reqs
3 Total Land
Chem i caIs
Toxic Substances
1 Ex i st i nq
2 New Reqs
3 TotaI Toxi c Subs
Pest i c i des
1 Existinq Reqs
3 Total Pesticides
Chem i caIs
1 Existinq
2 New Reqs
3 Total Chem i cals
Multi-Media
Annua I i zed Costs
TotaI FuI I ImpI
Tot. Annual ized Cc
,436
8,898
9,348
9,790
10,389
11 ,330
11,920
12,981
13,612
14
,116
13,145
13,518
14
, 737
15,596
16,
,436
8,898
9,348
9,790
10,389
11,330
11,920
12,981
13,612
14
,116
13,145
13,518
14
, 737
15,596
17,
15
59
112
235
312
15
59
112
235
312
,436
8,898
9,348
9,790
10,389
11,330
11 ,920
12,981
13,612
14
,131
13,204
13,630
14
,972
15,908
17,
,436
8,898
9,348
9,790
10,389
11 ,330
11,920
12,981
13,612
14
,131
13,204
13,630
14
,972
15,908
17,
9
5
9
47
158
345
429
367
315
237
245
303
9
5
9
47
158
345
429
367
315
237
245
303
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
92
143
183
181
349
408
583
853
889
791
712
610
685
773
92
143
183
181
349
408
583
853
889
791
712
610
685
773
108
139
461
587
729
919
903
886
868
695
606
692
657
687
,481
30,261
33,614
36,842
41,572
46,509
50,482
54,824
57,969
6C
),539
61 ,237
65,477
69
',925
74,021
80,
396
6
402
420
420
822
918
Footnotes to Table 8-17
Sum of the annualized costs in Tables 3-3. 4-3. 5-3. 6-3. and 7-3.
November 1990
-------
8-78
Environmental Investments
Table 8-17A: TOTAL COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REGULATION ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Media
I1
1991
1992
1993
1995
1997
2000
3
3.1
3.1.1
3.1.2
3.1.3
3.1.4
3.2
3.2.1
3.2.2
3.2.3
A i r and Rad i at i on
Ai r
Exi sti ng Regs 25,077
New Regs
FuI I ImpIementati on
Total Air 25,077
Rad i at i on
Ex i st i ng 1
New Regs
Total Radiation
354
0
355
r
at i on
25,431
3.3
3.3.1 Existing
3.3.2 New Regs
3.3.3 Full Implementation
3.3.4 Total Air & Radiation25,431
Dr i nk i ng Water
Exi sti ng Regs 2,979
New Regs
Fu I I dnp I ementat i on
Total Drinking Water 2,979
4.3 Water
4.3.1 Existing
4.3.2 New Regs
4.3.3 Full Implementation
4.3.4 Total Water
Land
So I i d Waste
5.1.1 Ex i st i ng
.2 New Regs
.3 Total Sol id Waste
5
5.1
5.1
5.1
15,697
15,697
26,634 27,117
45 121
Water
.1 Water Qua I i ty
.1.1 Existing Regs 32,386
.1.2 New Regs
.1.3 FuI I Implementati on
.1.4 Total Water Qua I ity 32,386
.2
.2.1
.2.2
.2.3
.2.4
5.2 Hazardous Waste
5.2.1 Exi sti ng Regs 1 ,212
5.2.2 New Regs 199
5.2.3 Total Hazardous Wastel ,410
27,540
332
27,216
372
28,351
654
29,241
919
29,430
1 ,077
326
1
327
347
6
353
26,960 27,
46
27,0(
127
27,591
34,421 35,213
27
34,421 35,241
3,111 3,158
92
3,111 3,250
35,365 37,531
35,365 37,531 38,491
,371
120
16,683 16,
16,683 16,
1,419 1,583
306 1,493
1,725 3,077
377
19
396
27,917
350
36,654
193
3,227
188
39,881
381
40,262
410
31
441
27,625
403
45
28,267 28,029 29,
,137 39,576
31 7
36,847 38,823
3,390
196
3,554
372
41,528
565
31 7
42,410
43,130
970
16,761 1 7,226 1 7,
16,761 1 7,226 18,'
467
58
525
29,349
868
30,217
1
61 7
820 42,571
3,665
654
3,415 3,587 3,926 4,319
44,746 46.
44,560
1 ,272
1 ,058
395
18,029
718
18,747
1,957 2,268 2,670
1,636 2,134 3,158
3,593 4,402 5,827
497
71
29,738
990
4,368
35,096
42,225
650
1 ,555
44,430
3,760
45,985
1 ,476
1 ,555
49,017
18,352
970
19,322
3,435 3,963
3,781 3,913
7,216 7,875
528
85
613
29,957
1 ,163
43,513
650
2,131
46,295
3,
1
47,362
1 ,718
2,131
51 ,212
18,663
1 ,221
19,884
29,513
2,391
26,679 27,238 27,872 27,588 29,005 29,692 34,528 34,905 36,493
559
100
659
30,072
2,491
35,518 37,151
44,763
650
2,781
48,194
3,936
1 ,414
2,064
2,781
53,543
1 ,351
20,338
4,533 4
8,616
4,228
9,210
29,581
3,619
5,012
38,212
590
115
705
30,172
3,733
5,012
38,917
650
3,426
50,085
4,026
1 ,658
4,917 5,350 5,
50,035
2,308
3,426
55,769
19,310
1 ,434
20,744
5,451
3,945
9,396
29,744
4,521
5,434
39,699
622
130
752
30,366
4,651
5,434
40,451
47,251
650
51,967
4,127
1 ,822
5,
51 ,377
2,473
57,916
19,625
1 ,517
21 ,142
5,952
4,181
10,133
29,890
5,534
5,854
41,278
654
146
30,544
5,680
5,854
42,078
650
4,701
53,840
4,228
2,036
52,717
2,686
4,701
60,104
1 ,600
21,539
30,026
6,211
6,276
42,513
162
30,712
6,373
6,276
43,361
49,723
650
5,332
55,706
4,317
2,174
54,041
2,824
5,332
62,197
6,457 6
4,325 4
10,782 11
30,125
7,370
6,554
71 7
1 79
30,841
7,549
6,554
50,954
650
5,958
57,563
4,376
2,195
6,264 6,491 6,571
55,330
2,845
5,958
64,134
20,240 20,537
1,682 1,765
21,922 22,302
7,485
4,577
12,062
(continued on next page)
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-79
Table 8-17A (cont'd): TOTAL COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REG ANNUALIZED AT 7 PERCENT
(millions of 1986 dollars)
Rpt
Media
1991
1992
1993
1995
1997
2000
1
5.3 LUST
5.3.1 Ex i st i nq
5.3.2 New Reqs
5.3.3 TotaI L0ST
5.4 RCRA
5.4.1 Ex i st i nq
5.4.2 New Regs
5.4.3 TotaI RSRA
5.5 Superfund
5.5.1 Ex i st i nq I
5.5.2 New Reqs
5.5.3 Total Superfund
5.6 Land
5.6.1 Existinq
5.6.2 New Reqs
5.6.3 Total Land
6 Chemicals
6.1 Toxic Substances
6.1.1 Exi st i nq Reqs
6.1.2 New Reqs
6.1.3 Total Toxic Subs
6.2 Pesticides
6.2.1 Exi sti nq Reqs
6.2.3 TotaI Pest i cfdes
6.3 Chemicals
6.3.1 Existinq
6.3.2 New Reqs
6.3.3 Total Cnem i cals
7 Multi-Media
8 Annua I i zed Costs
8.1 Total Existinq Reqs 79,841
8.2 TotaI New Reqs 205
8.3 Total FulI Imp I
8.4 Tot. Annual ized Costs80,046
13
13
30
1 ,281
1 ,311
30
3,184
3,215
18,103 17,895
306 1,493
17,107 18,409 19,388
930
930
18,747 19,524
2,917 5,318
21,664 24,842
1 ,
1 ,
1 , 704
1 , 704
17,312
199
17,511
396
6
402
18,786 18,825
306 1,493
19,092 20,318
20,096 21,228
2,917 5,318
23,013 26,547
420
420
365
365
453
453
376
80
456
454
454
396
162
558
697
697
375
225
979
979
41
3,675
3,716
20,401
7,228
27,629
2,124
2,124
22,525
7,228
29,753
432
367
799
52
,125
,177
21 ,516
8,623
30,139
84,938 86,670 90,470
352 1,820 3,810
85,290 88,490 94,280
93,339 97
6,511 9
31 7
00,167 107,867 114,1
2,
2,
24,332
8,623
32,956
452
1 ,170
1 ,170
62
4,549
4,611
22,377
9,431
31,808
3,439
3,439
25,815
9,431
35,247
473
618
1 ,091
1 ,257
1 ,257
72
3,214
3,286
23,268
8,519
31 , 787
4,050
4,050
27,317
8,519
35,836
620
1 ,104
1 ,305
1 ,305
2,838
2,920
24,050
8,418
32,468
91
2,875
2,966
24,852
8,254
33,106
5,296
5,296
101
2,913
3,014
25,678
8,611
34,289
28,740 30,148
8,418 8,254
37,158 38,402
497
621
1,119
1 ,353
1 ,353
512
662
1 ,174
1 ,407
1 ,407
5,
5,
31,636
8,611
40,247
526
665
1 ,192
1 ,465
1 ,465
111
3,861
3,972
26,508
9,786
36,293
6,645
6,645
33,152
9,786
42,938
537
668
1 ,206
1 ,516
1 ,516
120
3,553
3,673
7,355
7,355
34,683
9,705
1 ,582
1 ,582
130
3,561
3,691
,152
27,328
9,705 9,904
37,033 38,055
8,093
8,093
36,245
9,904
46,148
546 560
671 674
1,217 1,234
1 ,
1 ,
816
319 830
1 ,093
1 ,354
1 ,518
1 ,622
1 , 730
1 , 788
1 ,850
1 ,918
1 ,991
2,053
2,127
2,217
6
80
162
225
367
508
618
620
621
662
665
668
671
674
822
319 910
1 ,255
1 ,579
1 ,885
2,130
2,348
2,408
2,472
2,580
2,657
2,721
2,799
2,892
918
342 1,180
1 ,483
1 ,603
1 ,995
1 ,989
2,027
2,065
2,102
2,138
2,177
2,220
2,260
2,298
957 101,852 105,295 108,490 111,463 114,411 117,548 120,687 123,823 126,932
264 11,271 12,516 12,020 13,594 14,958 16,400 18,820 19,573 20,972
646 1,058 5,923 6,529 7,370 8,438 9,500 10,555 11,608 12,512
" 123,735 127,039 132,426 137,806 143,447 150,062 155,004 160,416
Footnotes to Table 8-17A
Sum of the annualized costs in Tables 3-3A, 3-3B, 4-3A, 5-3A, 5-3B, 6-3A, and 7-3A.
November 1990
-------
8-80
Environmental Investments
Table 8-17B: TOTAL COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REGULATION ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Media
1972
1973
1974
1975
1976
1977
1
1979
1
1
1
1
1
1
1
3
3.1
3.1
3.1
3.1
3.1
3.2
3.2
3.2
3.2
3.3
3.3
3.3
3.3
3.3
1
1
1
1
1
2
2
2
2
2
3
3
3
3
4.3
5
5.1
5.1
5.1
5.1
5.2
5.2
5.2
5.2
A i r and Rad i at i on
Ai r
1 Existing Reqs 7,769 9,235
2 New Regs
3 FuI I I mpIementat i on
4 Total Air 7,769 9,235
Rad i at i on
1 Ex i st i ng
2 New Regs
3 Total Radiation
1i
1 7
1 7
A i r & Rad i at i on
1 Existing Regs 7,787 9,251
2 New Reg
3 FuI I ImpIementat i on
.4 Total Air & Radiation 7,787 9,251
Water
Water Qua I i ty
.1 Existing Regs 8,734 9,847
.2 New Regs
.3 FuI I ImpIementat i on
.4 Total Water Qua I ity 8,734 9,847
Dr i nk i ng Water
.1 Exi sti ng Regs
.2 New Regs
.3 FuI I ImpIementat i on
.4 Total Drinking Water
782
11 id i ia nun
ng Water 782 842
Water
1 Existing Regs 9,516 10.
2 New Regs
3 FuI I ImpIementat i on
4 Total Water 9,516 10.
Land
So I i d Waste
1 Exi sti ng Regs 8,399 8
2 New Regs
3 Tota I Sol i d Waste 8, 399 8.
Hazardous Waste
1 Existing Regs
2 New Regs
3 Total Hazardous Waste
255
255
9,635
9,635
11 ,299
11 ,299
933
933
12,233
12,233
9,225
9,225
10,110 11,447 12,941 14,151 15,'
10,110 11,447 12,941 14,151 15,'
231
231
15,462 15,744 15,911
15,462 15,744 15,911
156
156
1 71
1 71
234
234
229
229
214
214
193
193
10,341 11,603 13,112 14,
10,341 11,603 13,112 14,
12,443 14,161 15,515 16,
12,443 14,161 15,515 16,
1,046 1,18*
1,046 1,18*
13,489 15,342 16,
13,489 15,342 16,
1,315 1,465 1,
1,315 1,465 1,
625 10,181 11,076 11,620 12,630 13,209 13,
625 10,181 11,076 11,620 12,630 13,209 13,
212
212
15,237 15,676 15,937 16,123
15,237 15,676 15,937 16,123
17,835 19,007 20,181 20,993
17,835 19,007 20,181 20,993
1,768 1,955 2,087
1,768 1,955 2,087
18,054 19,473 20,775 22,136 23,079
18,054 19,473 20,775 22,136 23,079
12,498
12,498
147
147
17,619 18,881
17,619 18,881
198 204
198 204
17,817 19,085
17,817 19,085
22,408 23,458
22,408 23,458
2,175 2,265
2,175 2,265
24,582 25,723
24,582 25,723
12,292 13,298
12,292 13,298
19,828 21,414
19,828 21,414
221
221
341
0
341
20,050 21,755
0
20,050 21,755
24,778 26,414
24,778 26,414
2,415 2,595
2,415 2,595
27,193 29,009
27,193 29,009
13,941 14,994
13,941 14,994
1 ,191
190
1 ,380
(continued on next page)
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-81
Table 8-17B (cont'd): TOTAL COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REG ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Media
1972
1973
1974
1975
1976
1977
1979
5.3
5.3
5.3
5.3
5.4
5.4.
5.4.
5.4.
5.5
5.5.
5.5
5.5.
5.6
5.6.
5.6.
5.6.
6.1
6.1
6.1
6.1
6.2
6.2
6.2
6.3
6.3
6.3
6.3
7
8
8.3
LUST
Ex i st i ng
New Regs
Total LOST
RCRA
Ex i st ing
New Regs
Total RCRA
Superfund
Ex i st i ng
New Regs
3 Total Superfund
Land
1 Existing
2 New Regs
3 Total Land
Chem i caIs
Toxic Substances
1 Ex i st i ng
2 New Regs
3 TotaI Toxi c Subs
Pest i c i des
1 Existing Regs
3 Total Pesticides
Chem i caIs
1 Existing
2 New Regs
3 Total Chem i cals
Multi-Media
Annua I i zed Costs
TotaI FuI I ImpI
Tot. Annual ized Cc
,399
8,820
9,225
9,625
1C
),181
11,076
11,620
12,630
13,209
13,662
12,645
12,973
14
,139
14,935
16
1,184
1 Oi^i
,399
8,820
9,225
9,625
1C
), 1 81
11,076
11,620
12,630
13,209
13,662
12,645
12,973
14
,139
14,935
16
i yu
;,374
14
52
96
200
255
326
14
52
96
200
255
326
,399
8,820
9,225
9,625
1C
),181
11,076
11,620
12,630
13,209
13,676
12,697
13,069
14
,339
15,190
16
1,510
1 Oi^i
,399
8,820
9,225
9,625
1C
), 1 81
11,076
11,620
12,630
13,209
13,676
12,697
13,069
14
,339
15,190
16
i yu
i, 700
9
5
9
47
157
341
425
362
309
229
234
288
377
9
5
9
47
157
341
425
362
309
229
234
288
b
383
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
92
143
183
181
349
408
581
849
885
786
705
603
674
758
796
92
143
183
181
349
408
581
849
885
786
705
603
674
758
b
802
108
139
461
587
728
91 7
901
883
863
686
596
679
642
669
898
,901
29,042
31 , 737
34,222
38
:, 203
42,344
45,542
49,072
51,408
53,221
53,200
56,751
6C
),462
63,860
69
',164
Footnotes to Table 8-17B
Sum of the annualized costs in Tables 3-3C. 4-3B. 5-3C, 6-3B. and 7-3B.
November 1990
-------
8-82
Environmental Investments
Table 8-17C: TOTAL COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REGULATION ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Media
I1
1
1991
1992
1993
1995
1997
2000
3 Air and Rad i at i on
3.1 Air
3.1.1 Existing Regs 21,414
3.1.2 New Regs
3.1.3 Full Implementation
3.1.4 Tota I Air 21 , 414
3.2 Rad i at i on
3.2.1 Ex i st i ng
3.2.2 New Regs
3.2.3 Total Radiation
341
0
341
r
at i on
21,755
3.3
3.3.1 Existing
3.3.2 New Regs
3.3.3 Full Implementation
3.3.4 Total Air & Radiation21,755
26,414 28.
Water
.1 Water Qua I i ty
1.1 Exi st i ng Regs
1.2 New Regs
1.3 FuI I Implementati on
1.4 Total Water Qua I ity 26,414
.2
.2.1
.2.2
.2.3
.2.4
2,595
Dr i nk i ng Water
Existing Regs
New Regs
FuI I Imp Iementat i on
Total Drinking Water 2,595
4.3 Water
4.3.1 Existing
4.3.2 New Regs
4.3.3 Full Implementation
4.3.4 Total Water
29,009
5
5.1
5.1.1
5.1.2
5.1.3
Land
So I i d Waste
Ex i st i ng
New Regs
Total Sol id Waste
14,994
14,994
5.2 Hazardous Waste
5.2.1 Exi sti ng Regs 1 ,191
5.2.2 New Regs 190
5.2.3 TotaI Hazardous Wastel ,380
22,772 23,062
32 92
22,804 23,154
311
1
312
330
5
335
23,084 23,392
33 97
23,116 23,490
,521
18
23,310
288
23,598
359
15
374
23,669
303
29,638
1 74
28,539 29,812
2,693 2,709 2,747
91 185
2,693 2,801 2,932
30,754 31,230 32,385
109 359
29,009 30,754 31,340 32,745
15,920 15,482 15,890
15,920 15,482 15,890
1,388 1,541 1,880
293 1,444 1,555
1,681 2,985 3,435
22,805
323
23,128
25
415
23,194
349
23,770
599
24,268
747
24,656
853
24,909
1
415
36
452
24,186
635
442
47
24,710
794
470
58
528
25,126
911
567
25,407
1 ,076
30,801 31,923
340 569
265 541
31,406 33,032
2,879
191
3,070
33,679
531
265
34,476
16,300
16,300
2,148
2,016
4,164
3,010
357
32,942
585
885
34,412
3,107
615
3,367 3,723
34,933
926
541
36,399
16,710
337
17,048
2,497
3,029
5,526
36,049
1 ,200
885
38,134
17,030
590
17,619
3,164
3,642
33,987
618
1 ,301
35,905
3,190
755
3,945
37,177
1 ,373
1 ,301
39,851
17,338
804
18,143
3,588
3,770
7,358
35,006
618
1 , 782
37,406
3,268
959
4,228
38,274
1 ,577
1 , 782
41,634
17,639
1 ,018
18,657
25,081
2,315
24,369 25,016 29,877 30,314 31
526
25,607
2,396
23,972 23,543 24,821 25,505 30,404 30,881 32,591
36,000
618
2,325
3,345
1 ,260
39,345
1 ,877
2,325
43,548
17,948
1,111
19,059
4,046 4,390
3,930 4,068
7,975 8,458
25,229
3,538
5,012
33,779
25,784
3,631
5,012
34,426
36,992
618
2,865
40,475
3,424
1 ,455
40,416
2,073
2,865
45,354
18,257
1 ,170
19,427
4,756
3,773
8,529
25,458
4,435
5,434
35,326
554 583
81 93 105
607 647 688
26,041
4,540
5,434
36,014
37,982
618
3,400
42,000
3,510
1 ,583
41 ,492
2,201
3,400
47,093
18,560
1 ,229
19,789
5,153
3,985
9,138
25,668
5,445
5,854
36,967
612
117
730
26,281
5,562
5,854
37,697
618
3,931
43,519
3,598
1 , 779
25,874
6,119
6,276
38,269
130
770
26,514
6,249
6,276
39,040
39,954
618
4,459
45,031
3,676
1 ,910
42,567
2,397
3,931
1 ,288
20,150
5,553
4,123
9,676
43,630
2,528
4,459
50,617
26,047
7,275
6,554
39,876
143
812
26,716
7,418
6,554
40,936
618
4,983
46,537
3,726
1 ,926
5,093 5,376 5,586 5,652
44,663
2,543
4,983
52,189
19,155 19,446
1,347 1,406
20,502 20,851
5,958 6,365
4,261 4,363
10,219 10,728
(continued on next page)
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-83
Table 8-17C (cont'd): TOTAL COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REG ANNUALIZED AT 3 PERCENT
(millions of 1986 dollars)
Rpt
Media
986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
1
13
30
30
41
52
62
72
81
91
101
111
120
130
1 ,126
2,874
3,185
3,479
3,747
2,400
2,010
2,033
2,058
2,658
2,347
2,352
1
13
1 ,155
2,904
3,226
3,531
3,809
2,471
2,091
2,124
2,158
2,769
2,468
2,483
184
17,309
17,036
17,800
18,479
19,248
20,246
20,988
21 756
22,419
23,105
23,814
24,527
25,233
25,941
190
293
1 ,444
2,681
4,889
6,551
7,710
8,322
7,347
7,189
6,976
7,271
8,069
7,955
8,121
374
17,603
18,480
20,480
23,369
25,799
27,956
29,310
29,104
29,609
30,080
31,085
32,595
33,188
34,062
326
562
753
1 ,089
1 ,361
1 ,675
2,222
2,682
3,119
3,577
3,998
4,467
4,955
5,459
5,983
326
562
753
1 ,089
1 ,361
1 ,675
2,222
2,682
3,119
3,577
3,998
4,467
4,955
5,459
5,983
510
17,872
17,789
18,888
19,840
20,922
22,468
23,670
24,876
25,996
27,102
28,282
29,481
30,692
31,924
190
293
1 ,444
2,681
4,889
6,551
7,710
8,322
7,347
7,189
6,976
7,271
8,069
7,955
8,121
700
18,165
19,233
21,569
24,729
27,474
30,178
31 ,992
32,223
33,186
34,078
35,552
37,550
38,647
40,045
377
341
348
364
339
392
407
424
432
444
455
468
477
485
496
6
80
140
180
299
418
528
530
531
572
575
578
581
584
383
341
428
504
519
691
825
952
962
975
1 ,028
1 ,043
1 ,055
1 ,066
1 ,080
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
796
795
802
1 ,061
1 ,318
1 ,477
1 ,577
1 ,681
1 737
1 797
1 ,862
1 ,933
1 ,993
2,066
2,154
6
80
140
180
299
418
528
530
531
572
575
578
581
584
802
795
882
1 ,200
1 ,498
1 , 777
1 ,995
2,209
2,267
2,328
2,434
2,508
2,571
2,647
2,738
898
822
1 ,108
1 ,400
1 ,479
1 ,871
1 ,865
1 ,902
1 ,940
1 ,978
2,014
2,055
2,098
2,139
2,178
968
73,326
74,321
77,404
79,510
83,389
86,669
89,556
92,234
94,722
97,178
99,802
102,419
105,041
107,635
196
326
1 , 731
3,483
5,949
8,411
10,123
11 ,134
10,531
11 ,994
13,251
14,586
16,606
17,314
18,667
265
541
885
5,669
6,180
6,914
7,877
8,834
9,785
10,735
11 ,537
164
73,652
76,052
80,887
85,724
92,341
97,677
106,358
108,945
113,630
118,306
123,222
128,810
133,090
137,838
5.3 LUST
5.3.1 Ex i st i nq
5.3.2 New Reqs
5.3.3 TotaI L0ST
5.4 RCRA
5.4.1 Ex i st i nq
5.4.2 New Reqs
5.4.3 TotaI RSRA
5.5 Superfund
5.5.1 Ex i st i nq I
5.5.2 New Reqs
5.5.3 Total Superfund
5.6 Land
5.6.1 Existinq
5.6.2 New Reqs
5.6.3 Total Land
6 Chemicals
6.1 Toxic Substances
6.1.1 Exi st i nq Reqs
6.1.2 New Reqs
6.1.3 Total Toxic Subs
6.2 Pesticides
6.2.1 Exi sti nq Reqs
6.2.3 TotaI Pest i cfdes
6.3 Chemicals
6.3.1 Existinq
6.3.2 New Regs
6.3.3 Total Chem i cals
7 Multi-Media
8 Annua I i zed Costs
8.1 Total Existinq
8.2 Total New Reqs
8.3 Total FulI Imp
8.4 Tot. Annual ized
Footnotes to Table 8-17C
Sum of the annualized costs in Tables 3-3D, 3-3E, 4-3C, 5-3D, 5-3E, 6-3C, and 7-3C.
November 1990
-------
8-84 Environmental Investments
Table 8-17D: TOTAL COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REGULATION ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Sec Media 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986
3 Air and Rad i at i on
3.1 Air
3.1.1 Existing Reqs 8,041 9,874 10,389 11,612 13,438 15,419 17,113 18,491 19,457 20,252 20,897 23,046 24,811 26,165 28,139
3.1.2 New Regs
3.1.3 Full Implementation
3.1.4 Total Air 8,041 9,874 10,389 11,612 13,438 15,419 17,113 18,491 19,457 20,252 20,897 23,046 24,811 26,165 28,139
3.2 Rad i at i on
3.2.1 Existing Regs 18 1 7 256 233 159 1 75 239 235 223 207 228 216 224 244 366
3.2.2 New Regs 0
3.2.3 Total Radiation 18 1 7 256 233 159 1 75 239 235 223 207 228 216 224 244 366
3.3 A i r & Rad i at i on
3.3.1 Existing Regs 8,058 9,891 10,645 11,845 13,597 15,594 17,353 18,726 19,681 20,459 21,124 23,261 25,034 26,409 28,505
3.3.2 New Regs 0
3.3.3 Full Implementation
3.3.4 Total Air& Radiation 8,058 9,891 10,645 11,845 13,597 15,594 17,353 18,726 19,681 20,459 21,124 23,261 25,034 26,409 28,505
4 Water
1 Water Qua I i ty
1.1 Existing Regs 9,434 11,250 13,426 15,326 17,818 20,031 21,926 24,003 26,001 27,903 29,412 31,506 33,220 35,202 37,535
1.2 New Regs
1.3 FuI I ImpIementat i on
1.4 Total Water Qua I ity 9,434 11,250 13,426 15,326 1 7,818 20,031 21,926 24,003 26,001 27,903 29,412 31,506 33,220 35,202 37,535
2 Dri nki ng Water
2.1 Existing Regs 819 918 1,053 1,211 1,391 1,567 1,758 1,980 2,164 2,404 2,587 2,722 2,858 3,062 3,305
2.2 New Regs
2.3 Full Implementation
2.4 Total Drinking Water 819 918 1,053 1,211 1,391 1,567 1,758 1,980 2,164 2,404 2,587 2,722 2,858 3,062 3,305
3 Water
3.1 Existing Regs 10,253 12,168 14,479 16,537 19,209 21,598 23,683 25,983 28,165 30,307 31,999 34,229 36,079 38,264 40,840
3.2 New Regs
3.3 Full Implementation
4.3.4 Total Water 10,253 12,168 14,479 16,537 19,209 21,598 23,683 25,983 28,165 30,307 31,999 34,229 36,079 38,264 40,840
5 Land
5.1 So I i d Waste
5.1.1 Existing Regs 8,467 8,964 9,453 9,931 10,566 11,546 12,175 13,278 13,953 14,319 13,423 13,297 14,396 15,135 16,294
5.1.2 New Regs
5.1.3 Total Sol id Waste 8,467 8,964 9,453 9,931 10,566 11,546 12,1 75 13,278 13,953 14,319 13,423 13,297 14,396 15,135 16,294
5.2 Hazardous Waste
5.2.1 Existing Regs 182 147 684 849 1,022 1,229
5.2.2 New
207
5.2.3 Total Hazardous Waste 182 147 684 849 1,022 1,436
(continued on next page)
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-85
Table 8-17D (cont'd): TOTAL COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REG ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Media
1972 1 973 1 974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
.467 8,9(
34 9,453
9,931
1(
), 566
11,546
12,175
13,278
13,953
1'
1,502
13,570
13,981
15,246
IE
3,156
.467 8,9(
34 9,453
9,931
1(
), 566
11,546
12,175
13,278
13,953
1'
1,502
13,570
13,981
15,246
IE
3,156
16
65
125
265
361
16
65
125
265
361
.467 8,9(
34 9,453
9,931
1(
), 566
11 ,546
12,175
13,278
13,953
1'
1,518
13,635
14,106
15,510
IE
3,518
.467 8,9(
34 9,453
9,931
1(
), 566
11 ,546
12,175
13,278
13,953
1'
1,518
13,635
14,106
15,510
IE
3,518
9
5
9
47
159
348
433
371
321
243
254
316
9
5
9
47
159
348
433
371
321
243
254
316
92 143 175
1 76
340
361
424
508
461
424
397
374
440
470
92 143 175
1 76
340
361
424
508
461
424
397
374
440
470
92 143 183
181
349
408
584
856
893
795
71 7
616
694
786
92 143 183
181
349
408
584
856
893
795
71 7
616
694
786
108 139 461
587
729
921
905
889
873
702
615
702
671
702
.978 31,305 35,222
39,082
4'
1,451
50,067
54,699
59,732
63,566
6E
3, 781
68,091
72,916
77,988
8S
1,679
5.3
5.3
5.3
5.3
5.4
5.4.
5.4.
5.4.
5.5
5.5.
5.5
5.5.
5.6
5.6.
5.6.
5.6.
6.1
6.1
6.1
6.1
6.2
6.2
6.2
6.3
6.3
6.3
6.3
7
8
8.3
LUST
Ex i st i ng
New Reqs
Total L0ST
RCRA
Ex i st ing
New Regs
Total RCRA
Superfund
Ex i st i ng
New Regs
3 Total Superfund
Land
1 Existing
2 New Regs
3 Total Land
Chem i caIs
Toxic Substances
1 Ex i st i ng
2 New Regs
3 TotaI Toxi c Subs
Pest i c i des
1 Existinq Reqs
3 Total Pesticides
Chem i caIs
1 Existing
2 New Regs
3 Total Chem i cals
Multi-Media
Annua I i zed Costs
TotaI FuI I ImpI
Tot. Annual ized Costs26,
207
730
471
471
994
207
200
413
6
419
420
420
832
934
Footnotes to Table 8-17D
Sum of the annualized costs in Tables 3-3F, 4-3D, 5-3F, 6-3D. and 7-3D.
November 1990
-------
8-86 Environmental Investments
Table 8-17E: TOTAL COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REGULATION ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Media
I1
1
1
1
1
1991 1992 1993 1
1995 1
1 997 1
1999 2000
3 Air and Rad i at i on
3.1 Air
3.1.1 Exi st i nq Reqs ^
3.1.2 New Regs
3.1.3 Full Implementation
3.1.4 TotaI Air ;
3 . 2 Rad i at i on
3.2.1 Ex i st i nq '
3.2.2 New Reqs
3.2.3 Total Radiation
3.3 A i r & Rad i at i on
3.3.1 Existinq
3.3.2 New Regs
3.3.3 Full Implementation
3.3.4 Total Air & Radiatior
Water
Water Qua I i ty
Existing Regs C
New Regs
Fu I I Implementati on
Total Water Qua I ity :
Dr i nk i ng Water
Existinq Reqs
New Regs
Fu I I Imp I ementat i oi
.1
.1 .1
.1 .2
.1 .3
.1 .4
.2
.2.1
.2.2
.2.3
.2.4
.3 Water
.3.1 Existinq
.3.2 New Regs
.3.3 Full Implementation
.3.4 Total Water
,139
29,862
30,507
31,075
30,902
32,179
32,736
33,067
33,200
33,208
33,208
33,313
33,404
33,480
33,
56
145
368
414
701
862
974
1 ,137
2,454
3,686
4,592
5,608
6,287
7,
4,368
4,398
4,589
5,012
5,434
5,854
6,276
6,
,139
29,918
30,651
31 ,444
31 ,315
32,880
33,598
38,409
38,735
40,251
41,906
43,339
44,865
46,043
47,
366
339
361
393
427
457
488
521
553
587
621
655
690
723
0
1
7
21
36
52
67
83
99
116
134
152
1 70
190
366
340
368
414
463
509
555
603
653
703
755
807
861
913
,505
30,201
30,868
31,468
31,329
32,636
33,224
33,588
33,753
33,795
33,828
33,969
34,094
34,204
34,
0
57
152
390
449
753
929
1 ,057
1 ,236
2,570
3,820
4,744
5,778
6,477
7,
4,368
4,398
4,589
5,012
5,434
5,854
6,276
6,
,505
30,258
31 ,019
31 ,858
31,778
33,389
34,153
39,013
39,387
40,954
42,660
44,146
45,726
46,956
48,
, 535
39,905
40,984
42,704
44,463
46,174
47,753
49,328
50,848
52,318
53,783
55,242
56,697
58,147
59,
35
209
393
623
645
678
678
678
678
678
678
678
362
738
1 ,208
1 , 775
2,432
3,173
3,909
4,640
5,365
6,085
6,
,535
39,905
41 ,019
42,912
45,218
47,535
49,606
51 ,781
53,958
56,169
58,370
60,560
62,740
64,910
67,
,305
3,465
3,538
3,634
3,825
4,016
4,138
4,244
4,342
4,437
4,537
4,650
4,763
4,862
4,
93
191
201
385
687
886
1 ,160
1 ,545
1 ,830
2,026
2,254
2,397
2,
,305
3,465
3,632
3,825
4,025
4,401
4,825
5,130
5,502
5,982
6,367
6,676
7,017
7,259
7,
,840
43,370
44,522
46,338
48,287
50,190
51,890
53,572
55,191
56,755
58,320
59,892
61,460
63,008
64,
129
399
594
1 ,008
1 ,333
1 ,564
1 ,838
2,223
2,508
2,704
2,932
3,075
3,
362
738
1 ,208
1 , 775
2,432
3,173
3,909
4,640
5,365
6,085
6,
,840
43,370
44,651
46,737
49,243
51,936
54,431
56,911
59,460
62,151
64,737
67,236
69,758
72,168
74,
5
5.1
5.1
5.1
Land
So I i d Waste
5.1.1 Ex i st i ng
.2 New Regs
.3 Total Sol id Waste
16,294
16,294
5.2 Hazardous Waste
5.2.1 Existing Regs 1,229
5.2.2 New Regs 207
5.2.3 TotaI Hazardous Wastel ,436
1 7,330 16,991
1 7,330 16,991
1,445 1,620
317 1,535
1,762 3,155
17,500
17,500
18,011
18,011
2,023 2,370
1,704 2,234
3,727 4,604
18,522
443
18,966
2,816
3,267
18,877
826
19,703
19,212
1,110
20,322
3,665 4,281
3,899 4,034
7,564 8,315
758
210
967
19,533 19,869 20,204 20,529 20,853 21,160 21,463
1,393 1,555 1,658 1,761 1,864 1,967 2,070
20,926 21,424 21,862 22,291 22,718 23,127 23,533
4,946 5,484 6,040 6,629 7,225 7,827 8,435
4,214 4,364 4,091 4,348 4,497 4,646 4,759
9,160 9,848 10,131 10,977 11,721 12,473 13,194
(continued on next page)
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-87
Table 8-17E (cont'd): TOTAL COSTS ASSUMING FULL IMPLEMENTATION BY TYPE OF REG ANNUALIZED AT 10 PERCENT
(millions of 1986 dollars)
Rpt
Media
1991
1992
1993
1995
1997
2000
5.3 LUST
5.3.1 Exi sti nq Reqs 1
5.3.2 New Reqs
5.3.3 Total LOST 1
5.4 RCRA
5.4.1 Existinq Reqs 17,523
5.4.2 New Reqs 207
5.4.3 Total RSRA 17,730
5.5 Superfund
5.5.1 Existinq Reqs 471 788 1 ,'
5.5.2 New Reqs
5.5.3 Total Superfund 471 788 1,'
5.6 Land
5.6.1 Existinq Reqs 17,994
5.6.2 New Reqs 207
5.6.3 Total Land 18,200
6 Chemicals
6.1 Toxic Substances
6.1.1 Existinq Reqs 413 385
6.1.2 New Reqs 6
6.1.3 Total Toxic Subs
6.2 Pesticides
6.2.1 Exi sti nq Reqs
6.2.3 Total Pesticides
6.3 Chemicals
6.3.1 Existinq
6.3.2 New Reqs
6.3.3 Total Cnem i cals
7 Multi-Media
8 Annua I i zed Costs
8.1 Total Existinq
8.2 Total New Reqs
8.3 TotaI FuI I Imp
8.4 Tot. Annual ized Costs89,318 95,206
13
13
30
1 ,415
1 ,444
30
3,452 4,0
3,482 4,1
41
52
682
734
62
5,239
5,301
72
3,917
3,988
3,552
3,634
91
3,601
3,692
101
3,650 4,
3,751 5,
111
120 130
4,592 4,603
4,713 4,733
18,776 18,624 19,552 20,411 21,379 22,594 23,555 24,550 25,434 26,335 27,260 28,189 29,107 30,028
317 1,535 3,119 5,686 7,809 9,407 10,384 9,524 9,472 9,350 9,760 11,259 11,206 11,433
19,093 20,159 22,671 26,097 29,189 32,001 33,939 34,075 34,906 35,685 37,019 39,448 40,313 41,461
1 ,572
1 ,572
2,001
2,001
2,512
2,512
3,329
3,329
4,091
4,091
4,852
4,852
5,650
5,650
6,416
6,416
7,244
7,244
8,102
8,102
423
181
263
424
585
514
695
527
697
543
559
739
576
742
745
597
9,913
9,913
19,564 19,707 21,124 22,412 23,891 25,923 27,646 29,402 31,084 32,751 34,503 36,291 38,097 39,940
317 1,535 3,119 5,686 7,809 9,407 10,384 9,524 9,472 9,350 9,760 11,259 11,206 11,433
19,881 21,242 24,244 28,098 31,700 35,330 38,030 38,927 40,556 42,101 44,263 47,550 49,303 51,373
613
751
419
385
480
605
669
891
1 ,074
1 ,209
1 ,224
1 ,241
1 ,298
1 ,318
1 ,333
1 ,345
1 ,364
420
420
453
453
454
454
697
697
979
979
1 ,085
1 ,085
1 ,170
1 ,170
1 ,257
1 ,257
1 ,305
1 ,305
1 ,353
1 ,353
1 ,407
1 ,407
1 ,465
1 ,465
1 ,516
1 ,516
1 ,582
1 ,582
1 ,658
1 ,658
832
6
838
839
839
854
80
934
1 ,120
181
1 ,301
1 ,385
263
1 ,648
1 ,552
424
1 ,976
1 ,659
585
2,244
1 , 771
695
2,466
1 ,831
697
2,528
1 ,896
698
2,594
1 ,966
739
2,705
2,041
742
2,783
2,104
745
2,849
2,179
748
2,927
2,271
751
3,022
934
860
1 ,241
1 ,553
1 , 709
2,101
2,095
2,133
2,170
2,208
2,243
2,282
2,324
2,363
2,399
105 J
213
54,832
374
97,191
1 ,895
101 ,603
4,090
105,122
6,992
362
110,370
9,995
738
114,791
12,254
1 ,208
118,710
13,700
6,143
122,348
13,295
6,830
125,737
14,963
7,762
129,108
16,417
8,921
132,686
17,949
10,074
136,273
20,714
11 ,219
139,851
21,506
12,361
143,401
22,944
13,353
105,693 112,476 121,102 128,253 138,553 142,473 148,462 154,446 160,710 168,207 173,718 179,
Footnotes to Table 8-17E
Sum of the annualized costs in Tables 3-3G, 3-3H, 4-3E, 5-3G, 5-3H, 6-3E, and 7-3E.
November 1990
-------
8-88 Environmental Investments
Table 8-18: TOTAL CAPITAL PLUS OPERATING EXPENDITURES ASSUMING FULL IMPLEMENTATION
(millions of 1986 dollars)
Rpt
Sec Media 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986
3 Air and Rad i at i on
3.1 Air
3.1.1 Existing Reqs 12,814 15,720 15,349 1 7,945 18,407 19,044 19,348 20,047 19,410 18,819 1 7,666 18,152 19,705 20,110 21,056
3.1.2 New Regs
3.1.3 Full Implementation
3.1.4 Total Air 12,814 15,720 15,349 17,945 18,407 19,044 19,348 20,047 19,410 18,819 17,666 18,152 19,705 20,110 21,056
3.2 Rad i at i on
3.2.1 Existing Regs 18 1 7 277 248 169 1 76 254 244 268 267 225 216 216 252 361
3.2.2 New Regs 1
3.2.3 Total Radiation 18 1 7 277 248 169 1 76 254 244 268 267 225 216 216 252 362
3.3 A i r & Rad i at i on
3.3.1 Existing Regs 12,832 15,737 15,627 18,193 18,576 19,220 19,602 20,291 19,678 19,085 17,891 18,368 19,921 20,362 21,417
3.3.2 New Regs 1
3.3.3 Full Implementation
3.3.4 Total Air & Radiationl2,832 15,737 15,627 18,193 18,576 19,220 19,602 20,291 19,678 19,085 1 7,891 18,368 19,921 20,362 21,418
4 Water
1 Water Qua I i ty
1.1 Existing Regs 20,806 21,308 22,479 23,502 24,831 26,935 26,539 27,211 27,545 26,236 25,858 26,321 26,455 27,142 28,774
1.2 New Regs
1.3 FuI I ImpIementat i on
1.4 Total Water Qua I ity 20,806 21,308 22,479 23,502 24,831 26,935 26,539 27,211 27,545 26,236 25,858 26,321 26,455 27,142 28,774
2 Dri nki ng Water
2.1 Existing Regs 1,468 1,512 1,641 1,741 1,794 1,793 1,898 2,160 2,319 2,413 2,433 2,378 2,386 2,622 2,896
2.2 New Regs
2.3 Full Implementation
2.4 Total Drinking Water 1 ,468 1,512 1,641 1,741 1,794 1,793 1,898 2,160 2,319 2,413 2,433 2,378 2,386 2,622 2,896
3 Water
3.1 Existing Regs 22,275 22,820 24,121 25,243 26,625 28,729 28,437 29,371 29,864 28,650 28,290 28,699 28,841 29,764 31,670
3.2 New Regs
3.3 Full Implementation
4.3.4 Total Water 22,275 22,820 24,121 25,243 26,625 28,729 28,437 29,371 29,864 28,650 28,290 28,699 28,841 29,764 31,670
5 Land
5.1 So I i d Waste
5.1.1 Existing Regs 9,654 10,157 10,590 10,767 11,240 12,119 12,576 13,625 14,120 14,256 12,961 12,539 13,677 14,255 15,369
5.1.2 New Regs
5.1.3 Total Solid Waste 9,654 10,157 10,590 10,767 11,240 12,119 12,576 13,625 14,120 14,256 12,961 12,539 13,677 14,255 15,369
5.2 Hazardous Waste
5.2.1 Existing Regs 182 147 741 941 1,325 1,360
5.2.2 New Regs 504
5.2.3 Total Hazardous Waste 182 147 741 941 1,325 1,
(continued on next page)
November 1990
-------
Total Costs andMajor Sources of Uncertainty
Table 8-18 (cont'd): TOTAL CAPITAL PLUS OPERATING EXPENDITURES ASSUMING FULL IMPLEMENTATION
(millions of 1986 dollars)
Rpt
Media
1972
1973
1974
1975
1976
1977
1979
5.3 LUST
5.3.1 Ex i st i nq Reqs
5.3.2 New Reqs
5.3.3 Total L0ST
5.4 RCRA
5.4.1 Ex i st i nq
5.4.2 New Reqs
5.4.3 TotaI rSr/
5.5 Superfund
5.5.1 Ex i st i nq I
5.5.2 New Reqs
5.5.3 Total Superfund
5.6 Land
5.6.1 Existinq
5.6.2 New Reqs
5.6.3 Total Land
6 Chemicals
6.1 Toxic Substances
6.1.1 Ex i st i nq
6.1.2 New Reqs
6.1.3 Total Toxic Subs
6.2 Pesticides
6.2.1 Exi sti nq Reqs
6.2.3 TotaI Pest i cfdes
6.3 Chemicals
6.3.1 Existinq
6.3.2 New Reqs
6.3.3 Total Chem i cals
7
9,654 1'
9,654 1(
.157 10,590
.157 10,590
10,767 11,240 12,11
10,767 11,240 12,11
12,576 13,625
12,576 13,625
14,120
14,120
9,654 1'
9,654 1(
.157 10,590
.157 10,590
10,767 11,240 12,11
10,767 11,240 12,11
12,576 13,625
12,576 13,625
14,120
14,120
14,438
14,438
54
54
14,492
14,492
13,1'
13,1'
13,280 14,619 15,581
13,280 14,619 15,581
16,729
504
17,233
233
233
362
362
905
905
13,341 13,642 15,407 1
13,341 13,642 15,407 1
17,633
504
18,137
8.3
8.4
8.5
Multi-Media
Capital &
TotaI FuI I
Total Capita
% of GNP
Costs
mp I
9
5
9
49
201
415 441
367
352
243
343
404
491
O
9
5
9
49
201
415 441
367
352
243
343
404
D
497
92
92
143
143
1 75
1 75
1 76
1 76
340
340
361
361
424
424
508 461
508 461
424
424
397
397
374
374
440
440
470
470
420
420
92
143
183
181
349
410
625
923 901
791
749
616
783
873
910
92
143
183
181
349
410
625
923 901
791
749
616
783
873
b
916
108
139
461
591
745
958
909
917 918
785
646
727
712
709
897
960
.50
48,995
1 .55
50,981
1 .62
54,975
1 . 77
57,536
1 . 77
61,436
1 .80
62,150
1 . 73
65,127 65,482
1 . 77 1.79
63,804
1 71
60,916
1 .67
62,052
1 .64
65,664
1 .63
68,193
1 .64
73,038
1 . 71
Footnotes to Table 8-18
9.1.1. Line 8.4 divided by Gross Domestic Product as given in "Economic Report of the President", February 1990, p. 304.
All other lines: Sum of corresponding lines in Tables 8-15 and 8-16.
November 1990
-------
8-90
Environmental Investments
Table 8-18A: TOTAL CAPITAL PLUS OPERATING EXPENDITURES ASSUMING FULL IMPLEMENTATION
(millions of 1986 dollars)
Rpt
Media
I1
1
1991
1992
1993
1995
1997
2000
3
3.1
3.1.1
3.1.2
3.1.3
3.1.4
3.2
3.2.1
3.2.2
3.2.3
3.3
3.3.1
3.3.2
3.3.3
3.3.4
A i r and Rad i at i on
Ai r
Exi sti nq Reqs 21,056
New Regs
Fu I I ImpIementati on
TotaI Air 21,056
Rad i at i on
Existinq Reqs 361
New Reqs 1
Total Radiation 362
A i r & Rad i at i on
Existinq Reqs 21,417
New Regs 1
FuI I Implementation
Total Air & Radiation21 ,418
Water
.1 Water Qua I i ty
.1.1 Exi sti nq Reqs 28,774
.1.2 New Regs
.1.3 FuI I Implementati on
.1.4 Total Water Qua I ity 28,774
.2
.2.1
.2.2
.2.3
.2.4
2,
.3 Water
.3.1 Existinq
.3.2 New Regs
.3.3 Full Implementation
.3.4 Total Water
5
5.1
5.1
5.1
Land
So I i d Waste
5.1.1 Ex i st i nq
.2 New Reqs
.3 Total Sol id Waste
15,369
15,369
21,518 21,117
477 590
337
4
341
Dr i nk i nq Water
Existinq Reqs
New Regs
FuI I Imp Iementat i on
Total Drinking Water 2,896
31 ,670
353
37
390
21,855 21,470
481 627
22,337 22,097
30,217 28,202
316
30,217 28,518
2,88;
2,88;
2,749
125
33,098 30,951
441
5.2 Hazardous Waste
5.2.1 Existinq Reqs 1,360
5.2.2 New Reqs 504
5.2.3 TotaI Hazardous Wastel ,864
16,204 15,447
16,204 15,447
1,684 1,869
392 2,661
2,076 4,530
20,365
743
21,995 21,707 21,1'
475
20,753
830
21 ,583
28,481
456
28,937
2,711
251
2,873 2,962
31 ,192
707
31,670 33,098 31,392 31,
19,224
389
19,613
420
93
513
19,643
482
20,125
28,977
624
1 ,933
31,533
2,786
259
3,045
31,763
883
1 ,933
34,578
19,670
690
20,360
447
114
560
20,117
803
20,920
29,415
538
2,180
32,133
2,859
698
3,557
32,274
1 ,236
2,180
35,690
2,967 3,403
2,525 3,102
5,492 6,505
4,023
3,101
7,124
19,950
818
20,768
473
114
20,424
932
21,356
29,384
645
2,867
32,896
2,947
1 ,384
32,331
2,029
2,867
37,227
15,736 16,025 16,313 16,
2,301 2,
15,736 16,025 18,614 19,
6,113
3,679
9,792
20,360
804
4,368
25,532
501
124
625
20,861
928
4,368
26,157
29,395
562
3,613
33,569
3,021
1 , 755
32,416
2,317
3,613
38,346
1 , 774
18,662
3,542
10,029
20,743
26,1'
529
134
21,272
1 ,100
29,438
562
4,369
34,369
3,'
2,072
4,331 4,776 5,1
32,533
2,634
4,369
39,537
17,176
1 ,895
19,071
21 ,121
2,257
4,589
27,967
557
145
702
21,678
2,402
26,770 28
29,511
562
5,137
35,210
3,170
2,568
32,681
3,130
5,137
40,947
17,464
1 ,895
19,359
6.959 6
3.960 3
10,919 10
21 ,415
3,463
5,012
29,890
585
155
740
22,000
3,618
5,012
30,630
30,018
562
5,468
36,048
3,244
2,740
5,737 5,
33,262
3,302
5,468
42,032
17,752
1 ,393
19,145
21,786
4,342
5,434
31,562
613
165
778
22,399
4,508
5,434
32,340
30,526
562
5,796
36,884
3,318
2,348
5,666
33,844
2,910
5,796
42,550
1 ,393
19,433
6,810 7,005
3,797 4,402
10,607 11,407
22,091
5,346
5,854
33,290
641
1 76
81 7
22,731
5,522
5,854
34,107
31,033
562
6,122
37,717
3,392
1 , 781
34,425
2,343
6,122
42,890
18,328
1 ,393
19,721
7,200
3,832
11,032
22,383
6,012
6,276
34,671
187
855
23,052
6,199
6,276
35,527
31 ,540
562
6,445
3,
1 ,
5,1 73 4,951
35,007
2,047
6,445
43,499
22,654
7,160
6,554
36,368
23,350
7,358
6,554
37,262
32,047
562
6, 766
39,375
3,509
1 ,485
35,556
2,047
6, 766
44,369
18,616 18,904
1,393 1,393
20,009 20,297
7,395 7,589
3,962 4,055
11,357 11,644
(continued on next page)
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-91
Table 8-18A (cont'd): TOTAL CAPITAL PLUS OPERATING EXPENDITURES ASSUMING FULL IMPLEMENTATION
(millions of 1986 dollars)
Rpt
Media
1986
1
987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
1
13
30
30
41
52
62
72
81
91
101
111
120
130
6,108
7,588
8,435
7,614
7,615
1 ,450
1 ,037
1 ,037
1 ,038
12,338
367
367
1
13
6,138
7,618
8,476
7,666
7,677
1 ,522
1,118
1 ,128
1 ,139
12,449
487
497
. 729
17,
889
17,329
18,732
19,458
20,377
22,766
23,437
24,207
24,331
24,654
25,146
25,639
26,131
26,624
504
392
2,661
8,633
10,690
13,837
14,173
12,931
7,305
6,826
6,227
6,833
17,563
5,722
5,815
.233
18,
281
19,990
27,365
30,148
34,214
36,939
36,368
31 ,512
31 ,157
30,881
31,979
43,202
31 ,853
32,439
904
1 ,
815
2,345
3,422
3,622
4,467
6,092
6,876
7,383
7,843
8,023
8,397
8,784
9,164
9,565
904
1 ,
815
2,345
3,422
3,622
4,467
6,092
6,876
7,383
7,843
8,023
8,397
8,784
9,164
9,565
.633
19,
704
19,674
22,154
23,080
24,844
28,858
30,313
31,590
32,174
32,677
33,543
34,423
35,295
36,189
504
392
2,661
8,633
10,690
13,837
14,173
12,931
7,305
6,826
6,227
6,833
17,563
5,722
5,815
.137
o
CM
096
22,335
30,787
33,770
38,681
43,031
43,244
38,895
39,000
38,904
40,376
51 ,986
41,017
42,004
491
439
436
428
399
447
457
468
387
399
410
421
432
444
455
6
80
914
898
962
1 ,025
305
307
308
349
352
355
358
361
497
439
516
1 ,342
1 ,297
1 ,409
1 ,482
773
694
707
759
773
787
802
816
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
420
453
454
697
979
1 ,085
1 ,170
1 ,257
1 ,305
1 ,353
1 ,407
1 ,465
1 ,516
1 ,582
1 ,658
910
892
890
1 ,124
1 ,378
1 ,532
1 ,627
1 , 725
1 ,692
1 , 752
1 ,816
1 ,886
1 ,948
2,025
2,113
6
80
914
898
962
1 ,025
305
307
308
349
352
355
358
361
916
892
970
2,038
2,276
2,494
2,652
2,030
1 ,999
2,060
2,165
2,238
2,303
2,383
2,474
897
815
2,828
1 ,591
2,705
1 ,568
1 ,557
1 ,594
1 ,632
1 ,670
1 , 708
1 , 751
1 , 795
1 ,839
1 ,883
5.3
5.3.1
5.3.2
5.3.3
LUST
Ex i st i ng
New Reqs
Total L0ST
5.4 RCRA
5.4.1 Ex i st i ng
5.4.2 New Regs
5.4.3 TotaI r£r/
5.5 Superfund
5.5.1 Exi sti ng Regs
5.5.2 New Regs
5.5.3 Total Superfund
5.6 Land
5.6.1 Existing
5.6.2 New Regs
5.6.3 Total Land
6 Chemicals
6.1 Toxic Substances
6.1.1 Exi st i ng Regs
6.1.2 New Regs
6.1.3 Total Toxic Subs
6.2 Pesticides
6.2.1 Exi sti ng Regs
6.2.3 TotaI Pest i cfdes
6.3 Chemicals
6.3.1 Existing
6.3.2 New Regs
6.3.3 Total Cnem i cals
7
ti-Media
Capital & O&M Costs
Total Existing Regs 72,527 76,365 75,813
Total New Regs 511 873 3,808
TotaI FuI I Imp I
Total Capital & O&M 73,038 77,238 79,621 87,
% of GNP 1 .71 1.74 1 .72 1
76,
11
78,569 80,336 84,796 86,910
12,953 16,838 18,160 16,481
1,933 2,180 2,867 7,981
93,454 99,354 105,822 111 ,371 1
2.00 2.08 2.17 2.24
88,719 89,954 91,463 93,423 95,323
11,346 12,666 13,496 14,602 25,783
8,767 9,726 10,480 11,230 11,976
08,832 112,346 115,439 119,256 133,082
2.14 2.1 7 2.19 2.22 2.43
97,218
14,326
12,721
99,091
15,580
13,320
124,265 127,992
2.23 2.26
Footnotes to Table 8-18A
Sum of the corresponding lines in Tables 8-15A and 8-16A.
November 1990
-------
8-92
Environmental Investments
Table 8-19: TOTAL CAPITAL PLUS OPERATING EXPENDITURES ASSUMING PRESENT IMPLEMENTATION
(millions of 1986 dollars)
Rpt
Media
1972
1973
1974
1975
1976 1977 1
1 979 1
3 Air and Rad i at i on
3.1 Air
3.1.1 Ex i st i nq
3.1.2 New Reqs
3.1.3 Total Air 12,
3.2 Rad i at i on
3.2.1 Exi sti na Reqs
3.2.2 New Reqs
3.2.3 Total Radiation
12,814 15,720 15,349
15,720 15,349
1 7
1 7
at i on
3.3 A i r & Rad
3.3.1 Existinq
3.3.2 New Reqs
3.3.3 Total Air
Water
1 Water Qua I
1.1 Ex i st i nq
1.2 New Reqs
1.3 Total Water Qua I
ty
2
2.1
2.2
2.3
Dr i nk i nq Water
Exi sti nq Reqs 1,468
New Reqs
Total Drinkinq Water 1,468
3 Water
3.1 Existinq
3.2 New Reqs
3.3 Total Water
22,275
22,275
5
5.1
5.1.1
5.1 .2
5.1.3
Land
So I i d Waste
Ex i st i nq
New Reqs
Total Soi id Waste
5.2 Hazardous Waste
5.2.1 Exi sti nq Reqs
5.2.2 New Reqs
5.2.3 Total Hazardous Waste
277
277
12,832 15,737 15,627
i ati onl2,832 15,737 15,627
20,806 21,308 22,479
ity 20,806 21,308 22,479
1,512 1,641
1,512 1,641
22,820 24,121
22,820 24,121
9,654 10,157 10,590
9,654 10,157 10,590
17,945
17,945
18,193
18,193
23,502
23,502
1 , 741
1 , 741
25,243
25,243
10,767
10,767
18,407 19,044 19,
18,407 19,044 19,
24,831
24,831
1 , 794
1 , 794
1 76
1 76
254
254
20,047 19,410 1
20,047 19,410 1
244 268
244 268
17,
17,
18,152 19,705 20,110 21,056
18,152 19,705 20,110 21,056
267
267
225
225
216
216
216
216
252
252
18,576 19,220 19,602 20,291 19,678 1
18,576 19,220 19,602 20,291 19,678 1
17,
17,
26,935 26,539 27,211 27,545 26,236 25,858 26,321 26,455 27,142
26,935 26,539 27,211 27,545 26,236 25,858 26,321 26,455 27,142
1 , 793
1 , 793
1 ,
1 ,
2,1
2,1
2,31
2,31
2,413
2,413
2,433
2,433
2,378
2,378
2,622
2,622
26,625 28,729
26,625 28,729
11,240 12,119
11,240 12,119
,437 29,371 29,864
,437 29,371 29,864
,650 28,290 28,
,650 28,290 28,
147
147
741
741
941
941
361
1
362
19,921 20,362 21,41 7
1
19,921 20,362 21,418
, 774
, 774
2,
2,
29,764 31,670
29,764 31,670
12,576 13,625 14,120 14,256 12,961 12,539 13,677 14,255 15,369
12,576 13,625 14,120 14,256 12,961 12,539 13,677 14,255 15,369
1,325 1,360
504
1,325 1,864
(continued on next page)
November 1990
-------
Total Costs and Major Sources of Uncertainty
8-93
Table 8-19 (cont'd): TOTAL CAPITAL PLUS OPERATING EXPENDITURES ASSUMING PRESENT IMPLEMENTATION
(millions of 1986 dollars)
Rpt
Media
972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
654
1
D, 1 57
1(
), 590
1(
D, 767
11
,240
12,119
12,576
13,625
1
1,120
1
1,438
13,108
13,280
14,619
15,581
16,729
654
1(
), 157
1(
), 590
1(
D, 767
11
,240
12,119
12,576
13,625
1
1,120
1
1,438
13,108
13,280
14,619
15,581
17,233
54
233
362
788
905
904
54
233
362
788
905
904
654
1
D, 1 57
1(
3,590
1(
D, 767
11
,240
12,119
12,576
13,625
1
1,120
1
1,492
13,341
13,642
15,407
16,486
17,633
504
654
1(
), 157
1(
), 590
1(
D, 767
11
,240
12,119
12,576
13,625
1
1,120
1
1,492
13,341
13,642
15,407
16,486
18,137
9
5
9
49
201
415
441
367
352
243
343
404
491
O
9
5
9
49
201
415
441
367
352
243
343
404
D
497
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
92
143
1 75
1 76
340
361
424
508
461
424
397
374
440
470
420
92
143
183
181
349
410
625
923
901
791
749
616
783
873
910
O
92
143
183
181
349
410
625
923
901
791
749
616
783
873
O
916
108
139
461
591
745
958
909
91 7
918
785
646
727
712
709
897
5.3 LUST
5.3.1 Ex i st i nq Reqs
5.3.2 New Reqs
5.3.3 Total L0ST
5.4 RCRA
5.4.1 Ex i st i nq
5.4.2 New Reqs
504
5.4.3 TotaI RCRA
5.5 Superfund
5.5.1 Ex i st i nq 1
5.5.2 New Reqs
5.5.3 Total Superfund
5.6 Land
5.6.1 Existinq
5.6.2 New Reqs
5.6.3 Total Land
6.1
6.1
6.1
6.1
6.2
6.2
6.2
6.3
6.3
6.3
6.3
7
8
8.3
Chem i caIs
Toxic Substances
. 1 Ex i st i nq
. 2 New Reqs
.3 TotaI Toxi c Subs
Pest i c i des
.1 Exi sti nq Reqs
.2 Total Pesticides
Chem i caIs
.1 Existinq
.2 New Reqs
.3 Total Chem i cals
Multi-Media
Capital ;
Total Capita
% of GNP
Costs
1 .50
5,995 50,981
1 .55 1 .62
54,975 57,536 61,436 62,150 65,127
1 .77 1 .77 1 .80 1 .73 1 .77
65,482
1 . 79
63,804
1 . 71
), 916 62,052 65,664
1 .67 1 .64 1 .63
,193
73,038
1 . 71
Footnotes to Table 8-19
Lines correspond with Table 8-18 except full implementation lines have been omitted.
November 1990
-------
8-94
Environmental Investments
Table 8-19A: TOTAL CAPITAL PLUS OPERATING EXPENDITURES ASSUMING PRESENT IMPLEMENTATION
(millions of 1986 dollars)
Rpt
Media
1991
1992
1993
1995
1997
2000
3
3.1
3.1
3.1
3.1
A i r and Rad i at i on
Ai r
1 Exi sti nq Reqs 21,056
2 New Reqs
3 Total A?r 21,056
3.2 Rad i at i on
3.2.1 Exi sti nq Reqs
3.2.2 New Reqs
3.2.3 Total Radiation
3.3 A i r & Rad i at i on
3.3.1 Existinq
3.3.2 New Reqs
3.3.3 Total Air
361
1
362
21 ,417
1
ation21 ,418
ty
Water
.1 Water Qua I
1.1 Ex i st i nq
1.2 New Reqs
1.3 Total Water Qua I
i ty 28
, 774
, 774
.2
.2.1
.2.2
.2.3
Dr i nk i nq Water
Exi sti nq Reqs 2,896
New Reqs
Total Drinkinq Water 2,896
.3 Water
3.1 Existinq
3.2 New Reqs
3.3 Total Water
5 Land
5.1 So I i d Waste
5.1.1 Ex i st i nq
5.1.2 New Reqs
5.1.3 TotaI So I i d Waste
5.2 Hazardous Waste
5.2.1 Ex i st i nq
5.2.2 New "
21,518 21,117
477 590
21,995 21,707
337
4
341
31 ,670
31 ,670
15,369
15,369
2,:
2,;
33,(
33,(
1 ,360
504
5.2.3 TotaI Hazardous Wastel ,864
353
37
390
21,855 21,470
481 627
22,337 22,097
30,217 28,202
316
30,217 28,518
2,749
125
2,873
30,951
441
31 ,392
16,204 15,447
16,204 15,447
1 ,684
392
2,076
1 ,869
2,661
4,530
20,365 19,224 19,670 19,950 20,360 20,743
743 389 690 818 804 966
21,108 19,613 20,360 20,768 21,164 21,708
388 420
87 93
475 513
2,711
251
2,962
31 ,192
707
31 ,899
447 473
114 114
560 588
501 529
124 134
625 664
20,753 19,643 20,117 20,424 20,861 21,272
830 482 803 932 928 1,100
21,583 20,125 20,920 21,356 21,789 22,372
28,481 28,977
456 624
28,937 29,601
2,786
259
3,045
31,763
883
32,646
29,415
538
29,953
2,859
698
3,557
32,274
1 ,236
33,510
29,384
645
30,029
2,947
1 ,384
4,331
32,331
2,029
34,360
29,395 29,438
562 562
29,957 30,000
15,736 16,025 16,313 16,
2,301 2,
15,736 16,025 18,614 19,
2,967 3,403
2,525 3,102
5,492 6,505
4,023
3,101
7,124
6,113
3,679
9,792
1 , 774
18,662
3,542
10,029
3,021 3,'
1,755 2,072
4,776 5,168
32,416 32,533
2,317 2,634
34,733 35,168
17,176
1 ,895
19,071
21 ,121
2,257
23,378
557
145
702
21,678
2,402
24,080
29,511
562
30,073
3,170
2,568
5,737
32,681
3,130
35,810
17,464
1 ,895
19,359
6.959 6
3.960 3
10,919 10
21 ,415
3,463
24,878
585
155
740
22,000
3,618
25,618
30,018
562
30,580
3,244
2,740
5,984
33,262
3,302
36,564
17,752
1 ,393
19,145
21,786
4,342
26,128
613
165
778
22,399
4,508
26,906
30,526
562
31,088
3,318
2,348
5,666
33,844
2,910
36,753
1 ,393
19,433
6,810 7,005
3,797 4,402
10,607 11,407
22,091
5,346
27,436
641
1 76
81 7
22,731
5,522
28,253
31,033
562
31,595
3,392
1 , 781
5,173
34,425
2,343
36,768
18,328
1 ,393
19,721
7,200
3,832
11,032
22,383
6,012
28,395
187
855
23,052
6,199
29,251
31 ,540
562
32,102
3,466
1 ,485
4,951
35,007
2,047
37,053
22,654
7,160
29,814
23,350
7,358
30,708
32,047
562
32,609
3,509
1 ,485
35,556
2,047
37,603
18,616 18,904
1,393 1,393
20,009 20,297
7,395 7,589
3,962 4,055
11,357 11,644
(continued on next page)
November 1990
-------
Total Costs and Major Sources of Uncertainty 8-95
Table 8-19A (cont'd): TOTAL CAPITAL PLUS OPERATING EXPENDITURES ASSUMING PRESENT IMPLEMENTATION
(millions of 1986 dollars)
Rpt
Media
1991
1992
1993
1995
1997
2000
5.3 LUST
5.3.1 Ex i st i nq
5.3.2 New Reqs
5.3.3 TotaI L0ST
5.4 RCRA
5.4.1 Ex i st i nq
5.4.2 New Regs
5.4.3 TotaI RSRA
5.5 Superfund
5.5.1 Ex i st i nq I
5.5.2 New Regs
5.5.3 Total Superfund
5.6 Land
5.6.1 Existinq
5.6.2 New Reqs
5.6.3 Total Land
6.1
6.1
6.1
6.1
6.2
6.2
6.2
6.3
6.3
6.3
6.3
7
8.1
8.2
8.3
16,729
504
17,233
17,633
504
18,137
491
6
497
17,889
392
18,281
1
1 ,i
Chem i caIs
Toxic Substances
.1 Exi sti nq Reqs
.2 New Regs
.3 TotaI Toxi c Subs
Pest i c i des
.1 Existing Regs 420
.2 Total Pesticides 420
Chem i caIs
.1 Exi sti ng Regs
.2 New Regs
.3 Total Chem i cals
Multi-Media
Capital & 0&M Costs
Total Existing Regs
Total New Regs
Total Capital & 0&M
% of GNP 1 . 71
19,704
392
20,096
439
439
453
453
13
13
17,329
2,661
19,990
2,345
2,345
19,674
2,661
22,335
436
80
516
454
454
30
18,732
8,633
27,365
3,422
3,422
22,154
8,633
30,787
914
1 ,342
697
697
30
7,588
7,618
19,4
10,6
30,1
3,622
3,622
23,080
10,690
33,770
399
898
1 ,297
979
979
41
8,435
8,476
20,377
13,837
34,214
4,467
4,467
24,844
13,837
52
7,614
7,666
62
7,615
7,677
22,766 23,437
14,1 73 12,931
36,939 36,368
.092
.092
28,858 30,313
14,1 73 12,931
43,031 43,244
447 457
962 1,025
1,409 1,482
1
1
1 ,170
1 ,170
305
773
1 ,257
1 ,257
72
1 ,450
1 ,522
24,207
7,305
31 ,512
7,383
7,383
31,590
7,305
387
307
1 ,305
1 ,305
1 ,037
1,118
24,331
6,826
31 ,157
7,843
7,843
32,174
6,826
39,000
399
91
1 ,037
1 ,128
24,654
6,227
30,881
8,023
8,023
32,677
6,227
101
1 ,038
1 ,139
111
12,338
12,449
410
308 349
707 759
25,146 25,639
6,833 17,563
31,979 43,202
8,397
8,397
33,543 34,423
6,833 17,563
40,376 51,986
421 432
352 355
773 787
120
367
26,131
5,722
31 ,853
1 ,353
1 ,353
1 ,407
1 ,407
1 ,465
1 ,465
1 ,516
1 ,516
35,295
5,722
41,017
358
1 ,582
1 ,582
130
367
497
26,624
5,815
32,439
9,565
9,565
36,189
5,815
42,004
455
361
910
892
890
1 ,124
1 ,378
1 ,532
1 ,627
1 , 725
1 ,692
1 , 752
1 ,816
1 ,886
1 ,948
2,025
2,113
6
80
914
898
962
1 ,025
305
307
308
349
352
355
358
361
916
892
970
2,038
2,276
2,494
2,652
2,030
1 ,999
2,060
2,165
2,238
2,303
2,383
2,474
897
815
2,828
1 ,591
2,705
1 ,568
1 ,557
1 ,594
1 ,632
1 ,670
1 , 708
1 , 751
1 , 795
1 ,839
1 ,883
72,527
76,365
75,813
76,814
78,569
80,336
84,796
86,910
88,719
89,954
91,463
93,423
95,323
97,218
99,091
511
873
3,808
11,084
12,953
16,838
1 8,160
16,481
11 ,346
12,666
13,496
14,602
25,783
14,326
15,580
73,038
77,238
79,621
87,899
91 ,522
97,174
102,956
103,391
100,065
102,620
104,959
108,026
121 ,106
111,544
114,672
1 .74
1 . 72
1 .95
2 .03
2.11
1 .97
2 .01
2.21
2 .02
Footnotes to Table 8-19 A
Lines correspond with Table 8-18A except full implementation lines have been omitted.
November 1990
-------
9-1
9. ANALYSIS AND CONCLUSIONS
The cost estimates presented in this report, together with data from other recent EPA studies,
permit some interesting comparisons of pollution control costs. These lead to preliminary
conclusions that may be of interest to Congress when considering the economic aspects of future
environmental legislation. This chapter discusses five such cost comparisons, and some general
conclusions that follow from these.
9.1. COST COMPARISONS
Below, comparisons of costs over time are discussed for the following categories of pollution
control costs and expenditures:
9.1.1. Total expenditures as a percentage of Gross National Product;
9.1.2. International pollution control expenditures;
9.1.3. Environmental media expenditure shares;
9.1.4. Cost burdens on local governments; and
9.1.5. Long term trends in total costs.
9.1.1. Total Expenditures as a Percentage of Gross National Product
In Chapter 8, measures of total annualized pollution control costs as a percentage of Gross
National Product (GNP) were used to provide a national economic perspective for the costs of
environmental protection. Another way to examine the relationship between pollution control costs
and national income aggregates is to compare annual measures of total pollution control
expenditures—the sum of capital and operating outlays—as a percentage of GNP.
The total expenditures measure differs from the total annualized costs measure discussed
throughout the previous chapters. Annualized costs reflect the sum of operating costs and total
amortized capital costs, which represents depreciation and interest charges on the stock of capital in
use as of that year. The total expenditures measure, on the other hand, represents total operating cost
plus the total value of capital equipment purchased in that year alone. It thus includes total monetary
outlays in a particular year, and excludes depreciation and interest charges on past capital
investments. The measure of total expenditures as a percentage of GNP is useful because it uses the
pollution control cost aggregate that is most similar to the GNP measure.
Tables 8-18 and 8-19 show total pollution control expenditures as a percentage of GNP under
both present and full implementation scenarios over the period 1972-2000.1 As illustrated in Figure
9-1, expenditures as a percentage of GNP increased from about 1.5 percent in the early 1970s to
1 In order to compute total pollution control expenditures as a percentage of GNP for future
years, data on GNP over the period 1972-1989 (in constant 1986 dollars) were linearly extrapo-
lated to years 1990-2000.
November 1990
-------
9-2
Environmental Investments
roughly 1.8 percent in the mid- and late 1970s, butfell slightly to about 1.7 percent during the 1980s.
Expenditures as a percentage of GNP are projected to increase gradually over the 1990s, reaching an
estimated 2.2 percent by the year 2000 under the full implementation scenario. Under the present
implementation scenario, expenditures are expected to level off at about two percent in the late 1990s.
Figure 9-2 shows the break down of total expenditures by type of regulation for the years 1986-
2000. In the early part of the period, new regulations make up most of the increase above that
resulting from existing regulations; in the late 1990s, the added costs are more evenly split between
new regulations and full implementation.
Another comparison that can be made using the total expenditures data is how environmental
pollution control expenditures compare with other national expenditures familiar to the individual
citizen. These comparisons can be made in terms of percentages of Gross National Product (GNP)
as follows:
COMPARATIVE U.S. EXPENDITURES AS PERCENT OF GNP
1980
1987
Environmental Pollution Control1
1.8
1.7
Clothing and Shoes2
3.6
4.2
National Defense2
5.4
6.9
Medical Care2
6.3
7.0
Housing2
9.8
9.3
Food2
12.4
11.7
1 From Table 8-19. Assumes full implementation.
2 From Economic Report of the President, January 1989, Tables B-2 and B-ll.
As can be seen, environmental pollution control represents a small fraction of the expenditures on
many of the major components of GNP.
9.1.2. International Pollution Control Expenditures
Comparable estimates of pollution control costs in other developed countries are available for
certain Western European nations only as a result of data collected by the Organization for Economic
Cooperation and Development.2 They largely used a total non-household expenditures measure of
costs and the Gross Domestic Product (GDP) measure of national income to make the estimates
comparable between countries. The nature of the total expenditures measure of costs is discussed in
the previous section. In order to make the expenditure estimates presented in this Report comparable
2 These cost estimates are reported in: Organization for Economic Cooperation and Develop-
ment, Pollution Control and Abatement Expenditure in OECD Countries: A Statistical Compen-
dium, OECD Environment Monographs, No. 38, November 1990, p. 40.
November 1990
-------
Cost Comparisons and Conclusions
9-3
to these OECD estimates, U.S. non-household expenditures are derived by subtracting out household
pollution control expenditures from total U.S. pollution control expenditure estimates presented in
Table 8-18. The U.S. non-household pollution control expenditure estimates are presented and
explained in Table 9-1. Table 9-2 uses this data to compare the sum of non-household capital and
operating expenditures as a percentage of GDP for the United States and these Western European
countries over the years 1972-1986. Data including household expenditures are also presented for
the United States and France, the only countries for which such data are available. The data for 1985,
the most recent year for which data are available for all the countries listed in Table 9-2, are shown
graphically in Figure 9-3.
International cost comparisons indicate that in almost every year for which there is comparable
data, non-household pollution expenditures as a percentage of GDP were higher in the U. S. than in
most of the nations for which comparable data are available. In 1985, the most recent year for which
data are available for every country listed in Table 9-2, the percentage of non-household expenditures
in the U.S. were nine to 76 percent higher than expenditures in Finland, the Netherlands, the United
Kingdom, France, and Norway, and five percent less than in West Germany.3
9.1.3. Environmental Media Expenditure Shares
A third useful comparison involves the shares of total U. S. expenditures accounted for by different
environmental media over time. The sum of capital and operating expenditures is used for these
comparisons since this measure of costs does not include interest and depreciation costs on past
capital investments, and thus illustrates near-term future trends more clearly than annualized costs.
As in the previous section, this measure is referred to as total expenditures to distinguish it from
annualized costs.
Figure 9-4 shows total expenditures by environmental medium over the period 1986 to 2000.
Figure 9-5 shows the percentage of total expenditures accounted for by each environmental medium
in 1997 compared to 1987. Both figures assume full implementation. The figures show that chemical
control expenditures are expected to grow in the future at the most rapid rate for any environmental
medium. However, chemical costs are relatively insignificant, and are expected to account for less
than two percent of total expenditures in the year 1997. The most significant increase in total
expenditures is expected in the land medium. Land expenditures are estimated to increase from 26
percent of total expenditures in 1987 to 34 percent by the year 1997. The share of water expenditures
over these years is expected to fall from 43 percent of total expenditures in 1987 to 34 percent in
1997, while the share of air expenditures is expected to fall slightly from 29 percent to 27 percent.
Since these estimates are based on full implementation, the share of water expenditures may fall even
more if the full implementation assumptions with regard to meeting municipal wastewater treatment
needs are not fulfilled.
3 It should be noted that the differences in the estimates for the United States and West
Germany are small enough that they could be the result of inaccuracies in the data or the
methods used to put them in comparable terms.
November 1990
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9-4
Environmental Investments
The components of future land expenditures are shown graphically in Figures 9-6 through 9-11.
Figure 9-6 shows that total expenditures for existing land programs are projected to increase further
over the period 1987-2000. The increase in land expenditures associated with new and forthcoming
regulations follow a less regular trend. Expenditures for new regulations are expected to increase
rapidly over the period 1987-1992. By 1992, new regulations will account for an estimated 34
percent of total land expenditures. Expenditures for new regulations are expected to fall off
considerably over the next few years to roughly one-half the 1992 level. However, they are expected
to jump again in 1998 and then fall back to the mid-1990 trend over years 1999-2000. Figure 9-7
shows that the two jumps in new regulation expenditures are due largely to those associated with new
rules for underground storage tanks (UST). The first jump is due in part to large UST corrective
action expenditures; the second jump is due primarily to large capital expenditures for the up-
grade/replacement of tanks in 1998, the regulatory deadline for such action. The UST expenditures
are broken out separately in Figure 9-10.
Solid waste is expected to account for the largest share of land expenditures over the period 1987-
2000, followed by hazardous waste, Superfund, and UST. This is shown in Figure 9-7. The large
majority of solid waste expenditures are for local government and private sector trash collection and
disposal activities, however, most of which do not result from Federal laws and regulations. As
shown in Figure 9-8, Federal solid waste regulations are expected to account for only 15 percent of
total solid waste expenditures in 1992, decreasing to about ten percent in subsequent years.
Figure 9-9 breaks out hazardous waste expenditures by existing and new regulations, and also
shows that portion of existing regulation expenditures expected to be incurred by the U. S. Department
of Energy (DOE) and the U.S. Department of Defense (DOD). This figure shows that existing
regulations will account for an average of 64 percent of total hazardous waste expenditures over the
period 1992-2000. An average of approximately 52 percent of these expenditures will be incurred
by DOE and DOD over the period.
Superfund expenditures are also estimated to increase rapidly over the period 1987-2000, and
DOE and DOD together are expected to account for an average of about 35 percent of the total over
the period. Figure 9-11 shows total Superfund expenditures and that portion of the total expected to
be incurred by DOE and DOD.
9.1.4. Cost Burdens onLocal Governments
A fourth interesting comparison involves local government pollution control costs over time. The
estimates presented in Chapter 8 suggest that although the percentage share of costs funded by local
government is not projected to change much, total annualized costs to local governments will increase
substantially over the period 1987-2000. As shown in Table 8-12A, annualized costs under the
present implementation scenario are expected to increase from $19 billion in 1987 to over $32 billion
by the year 2000, a 69 percent increase. Increases in local government costs are driven primarily by
expenditures for wastewater treatment and by revisions to several environmental laws in recent years
that establish broader and more stringent standards for drinking water treatment, sewage sludge
disposal, and solid waste disposal.
November 1990
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Cost Comparisons and Conclusions
9-5
A more detailed examination of the economic impacts of environmental pollution control
regulations at the local level can be found in the Municipal Sector Study4 released by EPA in 1988.
This report was part of a larger study that summarized the economic impacts of expanding pollution
control requirements on municipalities, small business, and agriculture.5
The study found that new and forthcoming pollution controls on local governments will require
significant additional capital investments and increases in rates charged to customers for expanded
environmental services. It is estimated that in the coming years the average household will be
charged an additional $100 annually for locally-provided environmental services. Those
municipalities with populations under 2,500 and over 250,000 will experience the greatest increases
in total user costs on a per household basis, with average additions to annual user charges and fees
of $170 and $160, respectively (see Table 9-3). When these costs are added to projected increases
in costs necessary to maintain current services, average household costs in the year 2000 are
estimated to be 60 to 120 percent higher than 1986 costs. Municipalities with populations under 2500
are expected to experience costs in the upper end of this range. Because smaller municipalities tend
to have lower average household incomes and higher unit costs for improved environmental services,
households in smaller communities will be required to pay a greater proportion of their incomes on
average than households in larger cities for comparable environmental services. Households in
communities with populations under 2,500 will pay an average 0.7 percent of their incomes for
environmental services while those in larger cities will pay, on average, 0.5 percent.
Most municipalities are expected to be able to meet the estimated increases in environmental
expenses and still remain financially sound. The municipalities most likely to experience difficulties
will be those with populations of 2,500 or less. Between 21 percent and 30 percent of these
communities may experience difficulties because of the high costs of certain individual regulations,
the cumulative costs of recent legislative requirements, and the limited margin for expanding
financial obligations in small communities. Such difficulties are not limited to small cities, but it is
estimated that a much smaller proportion (between three and seven percent) of cities with populations
over 2,500 persons will face financial problems as a result of EPA requirements.
The individual environmental regulations that account for the largest potential cost increases to
small municipalities are sewage treatment and new drinking water treatment requirements. Several
of the more costly drinking water regulations will apply to a greater proportion of smaller
municipalities than larger municipalities since they deal with environmental risks that are more often
found in smaller community water systems. Many larger water supply systems already have
introduced treatment systems to control such risks. The costs of solid waste disposal, asbestos
4 U.S. EPA, The Municipal Sector Study: Impacts of Environmental Regulation on Munici-
palities, Report No. 230-09-88-038, September 1988.
5 U.S. EPA, Municipalities, Small Business, and Agriculture: The Challenge of Meeting
Environmental Responsibilities, Report No. 230-88-037, September 1988.
November 1990
-------
9-6
Environmental Investments
removal in schools, and underground storage tank regulations, also account for a significant portion
of the additional costs expected to be borne by smaller communities.
9.1.5. Long Term Trends in Total Costs
A comparison of total annualized costs over the period 1972-2000 (see Figures 8-2 to 8-4) shows
that pollution control costs in constant dollars and as a percentage of GNP have increased steadily
over time, but at a decreasing rate of increase, and are expected to do so through the year 2000. In
the year 2000, costs are expected to be more than 70 percent higher than year 1987 levels under the
present implementation scenario, which includes costs for all current and planned pollution control
programs. Year 2000 costs are estimated to be over 85 percent higher than 1987 levels under the full
implementation scenario, which includes the costs of achieving the ozone NAAQS nationwide and
the expenditures needed to fulfill the nation's wastewater treatments needs, in addition to costs for
all current and planned programs. Since the ozone standard is more likely to be implemented, given
the enactment of the Clean Air Amendments of 1990, than the wastewater treatment needs are to be
met, the most likely projected costs would seem to be between the present and full implementation
projections. On the other hand, as discussed in Section 3.1.3, the cost estimates for the Clean Air Act
Amendments appear likely to be higher than those used in this report. A case can therefore be made
that the costs may lie nearer the full than the present cost projections.
Beyond the year 2000, the difficulty of projecting costs becomes even greater. The Clean Air Act
Amendments envision increasing costs beyond the year 2000. The annual costs for the Administra-
tion's Clean Air proposal included in this report are estimated to be $4 to $7 billion higher by the year
2005 compared to 2000. The trend also points upward, but at a decelerating rate of increase. All of
this suggests continued cost increases beyond the year 2000, at least until 2005.
9.2. CONCLUSIONS
The comparisons of pollution control costs discussed above and in Chapter 8 lead to a number
of conclusions. First, national expenditures on pollution control as a percentage of GDP have been
somewhat higher in the U.S. than in most Western European nations for which comparable data are
available. While these results are not conclusive evidence, they do suggest that the United States'
commitment to national pollution control is at least as great as that of many of its economic peers.
Second, over the next decade there is expected to be a shift in the relative shares of total
environmental control costs accounted for by different environmental media. Most significantly,
there is expected to be a substantial increase in the share of total costs directed towards land pollution
control (which includes a significant groundwater protection component), and a corresponding
decrease in the share of total costs directed towards the control of surface water quality. This is due
largely to legislation enacted in the 1980s relating to past and current hazardous waste management
practices. Costs associated with the Superfund clean-up of abandoned hazardous waste sites and
various RCRA programs involving current hazardous waste operations, including the corrective
action and underground storage tank programs, are expected to impose significantly increasing costs
over the next decade.
November 1990
-------
Cost Comparisons and Conclusions
9-7
Third, although their percentage share of total pollution control expenditures is expected to fall
slightly, it is projected that over the next several years pollution control burdens on municipalities
will increase dramatically, and result in large increases in the fees charged to consumers for locally-
provided environmental services. Moreover, many smaller municipalities may face severe difficulties
in securing the capital resources necessary to comply with pollution control requirements. The EPA
is currently extending technical and financial assistance to alleviate these constraints. The EPA,
municipalities, and private entities are also exploring more innovative ways to mitigate pollution
control burdens on localities. These include public partnerships and regionalization projects, whereby
two or more communities may share expertise, jointly purchase environmental services in volume at
discount prices, and enter into joint ventures for financing pollution control infrastructure.
Fourth, although increasing, national environmental pollution control expenditures remain less
than half those for clothing and shoes, one-third those for national defense, one-third those for
medical care, one-fifth those for housing, and one-sixth those for food.
Fifth, as discussed in Section 8.1.4, the non-EPA federal share of total annualized pollution costs
is projected to increase by more than 140 percent between 1987 and 2000, primarily as a result of the
cost of military and nuclear waste clean-up. All other shares, particularly the private sector, are
expected to fall somewhat. Even though the EPA share is expected to fall, the net effect is that the
federal share is projected to increase over this period.
Finally, the estimates presented in this Report show that total annualized costs for pollution
control programs have been increasing fairly rapidly in recent years, and are expected to continue this
trend through the year 2000. Currently, the nation spends about two percent of GNP on pollution
control; this is expected to increase to between 2.6 and 2.8 percent of GNP by the year 2000. There
is reason to believe that pollution control costs will be rising significantly at least through the year
2005. Even if no new environmental legislation is passed beyond the Clean Air Act Amendments
of 1990, pollution control costs appear likely to continue to increase beyond the costs projected in
this report for the year 2000. Moreover, if new environmental legislation should be enacted in the
future, costs would be higher than those projected in this report.
November 1990
-------
9-8 Environmental Investments
Fig. 9-1: U.S. POLLUTION CONTROL EXPENDITURES AS A PERCENTAGE OF GNP
3.0
2.5
2.0
CL
z
CD
O
Z 1.5
a>
a
©
CL
1.0
0.5
3.0
2.5
2.0
1.5
1.0
0.5
^ 1972 1974 976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
| Present Implementation [H Full Implementation
Source: Tables 8-18, 8-18A, 8-19, and 8-19A
November 1990
-------
Cost Comparisons and Conclusions
Fig. 9-2: TOTAL CAPITAL AND OPERATING EXPENDITURES BY TYPE
140
<2 60
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 200(
'Existing Regulations
Full Implementation
New Regulations
Source: Table 8-18A
November 1990
-------
9-10 Environmental Investments
Fig. 9-3: 1985 INTERNATIONAL POLLUTION CONTROL EXPENDITURES AS A PERCENTAGE OF GDP
United States
West Germany
Finland
Netherlands
United Kingdom
France
1.0
(percent of GDP)
Non-Household
Household
Source: Table 9-2
* Includes household expenditures
November 1990
-------
Cost Comparisons and Conclusions
Fig. 9-4: TOTAL CAPITAL AND OPERATATING COSTS BY MEDIUM
1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
[Total Multi-Media
Source: Table 8-18A
~
Total Chemicals
Total Air
Total Water
Total Land
November 1990
-------
-12
Environmental Investments
Fig. 9-5: PERCENTAGE OF CAPITAL PLUS OPERATING COSTS BY MEDIUM
Water 42.9%
Air & Radiation 28.9%
Multi-Media 1.1%
Water 35.7%
Chemicals 1.2%
Land 26.0%
Chemicals 1.9%
Air & Radiation 27.'
Multi-Media 1.f
Land 33.9%
1987 Total Cost
($77 billion)
1997 Total Cost
($119 billion)
Source: Table 8-18
November 1990
-------
Cost Comparisons and Conclusions
Fig. 9:6: TOTAL LAND CAPITAL AND OPERATING COSTS BY TYPE
9-13
60
50
w
w
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o
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o>
(A
c
o
40
30
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vX*XvIvIv^
(60
50
40
30
20
10
10
0 o
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Source: Table 8-1 8A
Existing Regulations
New Regulations
November 1990
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9-14
60
50 -
«
o
T3
CO
00
40 -
£30 -
o
V)
c
o
20 -
10
Environmental Investments
Fig. 9-7: TOTAL LAND CAPITAL AND OPERATING COSTS BY PROGRAM
60
- 50
40
30
20
10
0
1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
Total Solid Waste
Total Superfund
Total Hazardous Waste
Total UST
Source: Table 8-18A
November 1990
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Cost Comparisons and Conclusions
Fig. 9-8: SOLID WASTE CAPITAL AND OPERATING COSTS BY TYPE
9-15
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
New Regulations
Source: Table 8-18A
Existing Regulations
November 1990
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16
Environmental Investments
Fig. 9-9: HAZARDOUS WASTE CAPITAL AND OPERATING COSTS BY TYPE
1985 1986 1987 1988 1989 1990 199"
Existing Regulations:
All expenditures except DOD/DOE
1992 1993 1994 1995 1996 1997 1998 1999 2000
New Regulations
Existing Regulations:
DOD/DOE expenditures
Source: Table 8-18A
November 1990
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Cost Comparisons and Conclusions
Fig. 9-10: UST CAPITAL AND OPERATING COSTS BY TYPE OF REGULATION
9-17
14
12 -
10 -
w
03
3 8
CO
00
o
g 6
o
4 -
2 -
0
14
- 12
- 10
- 8
- 6
- 4
- 2
0
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
New Regulations
Existing Regulations
Source: Table 8-1 8A
November 1990
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Environmental Investments
9-18
Fig. 9-11: SUPERFUND CAPITAL AND OPERATING COSTS BY TYPE
12
10 "
w
aJ
o
~o
CO
oo
o>
(0
c
o
12
10
8 h 8
6 -
4 -
2 -
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
1981 1983 1985 1987 1989 1991 1993 1995 1997 1999
'Existing Regulations:
All expenditures except DOD/DOE ^
Existing Regulations:
DOD/DOE expenditures
Source: Table 8-1 8A
November 1990
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Cost Comparisons and Conclusions 9-19
Table 9-1: NON-HOUSEHOLD CAPITAL PLUS OPERATING EXPENDITURES
(millions of 1986 dollars)
Line
(Report Section)
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
A.
Total Expenditures
44,960
48
,995
50,981
54,975
57,536
61 ,436
62,150
65,127
65,482
63,804
60,916
62,052
65,664
68,193
73,038
A.l
Gross Domestic Product ($bi 11 ions)
2, 750
2
,911
2,924
2,944
3,115
3,307
3, 513
3,600
3,589
3, 670
3,585
3, 711
3,959
4,080
4,197
A.2
Total Expenditures as % of GDP
1 . 635
1
.683
1 .743
1 .867
1 .847
1 .858
1 . 769
1 .809
1 .825
1 . 738
1 .699
1 . 672
1 .659
1 .671
1 . 740
B.
Household Capital Costs
(3.1
2) Household Mobi le
208
442
343
2,446
2,861
3,142
3, 277
3,095
3,102
3, 607
3,382
4,031
4,969
5,347
5,484
(3.2
) Private Radon
1
(4.1
1) Septic System Cleaning
3, 231
3
,555
2,691
2,059
2,277
2,675
2,934
2,923
2,340
1 ,933
1 ,959
2, 280
2,612
2,483
2, 582
(5.1
Household Sol id Waste
75
80
81
78
76
76
77
79
80
79
77
78
82
90
96
B.I
Total Household Capital Costs
3, 514
4
,077
3,114
4, 582
5,214
5,892
6, 288
6,096
5,523
5, 619
5,418
6, 390
7,663
7,921
8,163
C.
Household Operating Costs
(3.1
2) Household Mobi le
957
1
497
1 ,479
1 ,209
965
890
686
451
263
(98)
(343)
(253)
(486)
(625)
(469)
(3.2
) Private Radon
(4.1
1) Septic System Cleaning
622
635
559
522
528
533
530
519
487
473
468
470
501
560
595
(5.1
Household Sol id Waste
1 , 371
1
,415
1 ,430
1 ,465
1 ,455
1 ,504
1 , 593
1 ,612
1 ,696
1 , 635
1 ,608
1 , 607
1 ,647
1 ,735
1 ,831
C.I
Total Household Operating Costs
2,950
3,547
3,468
3,196
2,948
2,927
2,809
2,582
2,445
2,010
1 ,732
1 ,824
1 , 661
1 ,669
1 ,957
D.
Total Costs Less Household Costs
38,49£
41,372 44,39
3 47,197
49,374
52,616
53,053
56,449
57,514
56,174
53,766
53,838
56,340
58,603
62,919
D.I
Non-household Costs as a % of GDP
1 .400
1 .421
1 .518
1 .603
1 .585
1 .591
1 . 510
1 .568
1 .603
1 . 531
1 .500
1 .451
1 .423
1 .436
1 .499
Footnotes to Table 9-1 by line:
A. Total capital plus operating expenditures as shown in Table 8-18.
A.l. As given in thq Economic Report of the President, February 1990, p. 304, adjusted to 1986 dollars using the GNP price deflators shown in Table 1-2.
A.2. Total capital plus operating costs divided by line A.l.
B. Household capital expenditures included in this Report under Section:
3.1.2. Expenditures by individuals for motor vehicle emission abatement devices. From line 2 of Tables C-2 and C-8. It is assumed that only light duty vehicles and motorcycles are
purchased by the household sector. Some light duty vehicles are purchased by business and government, but this may be compensated for by the fact that some trucks and aircraft
are purchased by the household sector.
3.2. Expenditures by individuals for radon control devices. From private new regulations on this line of Table 3-1B since this represents household investment in radon control.
November 1990
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9-20 Environmental Investments
4.1.1. Expenditures by households for septic system and lateral (connectors to sewer lines) investment. Based on data supplied to the Organization for Economic Cooperation and
Development (OECD) by the Bureau of Economic Analysis of the Department of Commerce.
5.1. Expenditures by households for solid waste collection and disposal capital for handling household solid waste by private contract and self-service methods. Based on data supplied
to OECD by the Bureau of Economic Analysis of the Department of Commerce.
C. Household operating expenditures included in this Report under Section:
3.1.2. Expenditures by individuals to operate and maintain motor vehicle emission abatement devices. From line 3 of Tables C-2 and C-8.
3.2. Expenditures by individuals to operate radon control devices. From private new regulations on this line of Table 3-2B.
4.1.1. Expenditures by households for septic system maintenance such as cleaning. Based on data supplied to OECD by the Bureau of Economic Analysis of the Department of Commerce.
5.1. Expenditures by households for solid waste collection and disposal. Data were supplied to OECD by the Bureau of Economic Analysis of the Department of Commerce.
D. Total capital plus operating expenditures less total household capital and operating expenditures (line A.l minus lines B.l and C.l).
D.l. Total non-household capital plus operating expenditures as a percentage of Gross Domestic Product (line D as a percentage of line A.l).
November 1990
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Cost Comparisons and Conclusions
9-21
Table 9-2: CAPITAL PLUS OPERATING EXPENDITURES FOR SOME OECD COUNTRIES
AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT
Country
1972 1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
United States
Non-househo1d
1 .40 1 .42
1 .52
1 .60
1 .59
1 .59
1 .51
1 .57
1 .60
1 .53
1 .50
1 .45
1 .42
1 .44
1 .50
1nc1ud i ng househo1d
1.64 1.68
1 . 74
1 .87
1 .85
1 .86
1 . 77
1 .81
1 .83
1 . 74
1 . 70
1 .67
1 .66
1 .67
1 . 74
Austr i a
1 .09
1.16
1 .10
1.13
F i n1 and
1 .31
1.19
1 .24
1.12
1 .10
1 .32
1.16
France
Non-househo1d
0.87
0.86
0.85
0.84
0.85
0.89
1 nc1ud i ng househo1d
1 .10
1.15
West Germany
1 .37
1 .36
1 .29
1 .33
1 .37
1 .45
1 .45
1 .45
1 .41
1 .37
1 .52
Nether 1ands
1.11
1.18
1 .26
Norway
0.82
United Kingdom
1 .66
1 .57
1 .25
Footnotes to Table 9-2
United States: Table 9-1, lines D.l and A.2.
All other countries: Represent non-household expenditures, except as noted in the case of France, as shown in Organization for Economic Co-operation and Development,
Pollution Control and Abatement Expenditure in OECD Countries: A Statistical Compendium, OECD Environment Monographs No. 38, November 1990, p. 40.
November 1990
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Environmental Investments
Table 9-3: POTENTIAL INCREASES IN ANNUAL CHARGES BY CITY SIZE BY THE YEAR 2000
(1986 dollars per household)
Municipal ity Types of Regulations
S i ze
(popi
Category
j1 at i on)
Number of
Mun i c i pa 1 i t i es
Wastewater
Dr i nk i ng Water
So 1 i d Waste
M i see 11aneous
Total
0 -
2,500
26,315
45
40
26
59
1 70
2,500
- 10,000
6,279
20
15
23
32
90
10,OOC
) - 50,000
2,694
20
5
32
23
80
50,000
- 250,000
463
20
10
28
12
70
Over
250,000
59
60
15
51
34
160
Footnotes to Table 9-3
User charge increases have been calculated using weighted average costs of new regulations. The costs that a municipality may incur will depend on the regulations it has to
comply with.
Source: U.S. Environmental Protection Agency, The Municipal Sector Study: Impacts of Environmental Regulations on Municipalities, Office of Policy, Planning and Evaluation,
Report EPA-230-09/88-038, September, 1988, p. v.
November 1990
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10-1
10. ENVIRONMENTAL TRENDS
This chapter presents data and information on historical trends in various measures that are
suggestive of the level of environmental quality over time. The objective is to provide some
indication of the "output" of the pollution control costs presented in this report. As only indicators
of environmental quality, these data are not readily comparable to the monetary cost estimates.
Pollution controls have resulted in substantial and valuable national benefits in the form of improved
human health, recreational opportunities, visibility, and general environmental integrity. An ideal
comparison of the costs and benefits of pollution control would require that these benefits be
identified, quantified, and monetized. This is an extremely difficult and data intensive task and far
beyond the scope of this report.
Instead, this chapter relies on historical data on estimated air and water pollutant emissions and
ambient pollution levels, and information on the production and regulation of hazardous waste and
toxic substances to provide an indication of environmental quality levels over time. While this
provides some indication of changing environmental quality levels, it does not adequately show the
degree of environmental protection afforded by cumulative pollution control efforts. In the absence
of controls, increasing population and levels of economic activity would have resulted in steadily
decreasing environmental quality over time. In order to adequately show environmental quality
improvements resulting from pollution controls, we would need to compare current levels of
environmental quality indicators with estimated levels that would have prevailed in the absence of
cumulative pollution control efforts. Except in the case of the criteria air pollutants emissions, such
comparisons are precluded by the available data. For all other environmental indicators discussed
in this chapter, no data are available on what these might have been in the absence of pollution
control efforts.
The data presented for different environmental media and regulatory program areas are of widely
varying quantity and quality. As might be expected, nationwide data on the more mature pollution
control programs, such as those directed to air and water quality, are more extensive and better than
those for the newer regulatory programs. The data and information on various environmental quality
indicators are shown in Figures 10-1 through 10-15, and Tables 10-1 through 10-13. These data are
summarized below in the following sections:
10.1. Air Quality;
10.2. Water Quality;
10.3. Land Quality; and
10.4. Exposure to Chemicals.
10.1. AIR QUALITY
Historical trends in emissions of the six criteria air pollutants or their precursors—particulate
matter(PM), sulfur oxides (SOx), nitrogen oxides (NOx), volatile organic compounds (VOCs), carbon
monoxide (CO), and lead (Pb)—and trends in ambient air quality with respect to these pollutants are
discussed in this section. Because one of the criteria air pollutants, ozone, is a secondary pollutant
November 1990
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10-2
Environmental Investments
formed by the reaction of reactive volatile organic compounds and nitrogen oxides, emissions of
reactive volatile organic compounds and nitrogen oxides (a criteria pollutant in its own right) are
measured rather than ozone. The data indicate that since 1970 there has been a substantial decrease
in emissions of these six pollutants except nitrogen oxides. In terms of ambient air quality, clear
improvements have been observed with respect to every criteria pollutant (the same six pollutants
with ozone substituted for volatile organic compounds) except ozone. The experience with ozone
has been mixed. Despite these improvements, many regions of the country are still not in compliance
with the National Ambient Air Quality Standards (NAAQSs) associated with one or more of the
criteria pollutants.
10.1.1. Pollutant Emissions
Table 10-1 presents estimates of national emissions over the period 1940-1988 by source category
for particulate matter, sulfur oxides, nitrogen oxides, volatile organic compounds, carbon monoxide
and lead.1 (The data for lead in years prior to 1970 are incomplete.) According to these estimates,
emissions of all the criteria air pollutants except nitrogen dioxide fell between 1970 and 1988.
Historical emissions for each criteria pollutant are discussed separately below.
10.1.1.1. Particulates
Over the period 1970-1988, total air emissions of particulates declined by 63 percent. Emissions
from industrial and stationary fuel combustion sources decreased significantly over the period due
to the introduction of pollution controls on these sources. Solid waste emissions also declined as a
result of restrictions on solid waste burning. Emissions from transportation sources increased slightly
over the period, however. This is probably due to the large increases in the number of motor vehicles
and miles travelled over time, which have offset the benefits of increasingly stringent pollution
control requirement on mobile sources.
10.1.1.2. Sulfur Oxides
Over the period 1970-1988, total air emissions of sulfur oxides declined by approximately 28
percent. Stationary fuel combustion source emissions declined by 23 percent due in part to greater
reliance on low sulfur fuels and in part to limited pollution control requirements. Industrial emissions
decreased by 47 percent as a result of the introduction of controls on smelters and sulfuric acid plants.
Emissions from transportation sources, which historically have accounted for a relatively small
portion of total emissions, increased by approximately 30 percent over the period. Again, this is
probably the result of significant increases in the number of vehicles and miles travelled over time.
1 These data are from: U.S. Environmental Protection Agency, National Air Pollution
Estimates 1940-1988, Office of Air Quality Planning and Standards, National Air Data Branch,
March 1990, and other reports in this series, 1984-1987.
November 1990
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Environmental Trends
10-3
10.1.1.3. Nitrogen Oxides
Total air emissions of nitrogen oxides increased by approximately seven percent over the period
1970-1988. Emissions from transportation sources, which increased by approximately 123 percent
from 1970 to 1980, have since fallen back to year 1970 levels. Emissions from stationary fuel
combustion sources increased approximately 18 percent. This increase probably would have been
much greater were it not for the introduction of pollution controls on coal-fired electric utility boilers.
Industrial source emissions, which have historically been relatively low, did not change over the
period. Solid waste emissions, which also have been relatively low, decreased by more than 50
percent.
10.1.1.4. Volatile Organic Compounds
Over the period 1970-1988, total emissions of volatile organic compounds declined by 25 percent.
Transportation source emissions declined by 40 percent due to the adoption of air pollution controls
on motor vehicles. Industrial source emissions declined only slightly, however, and remain the
largest source of total VOC air emissions. Stationary fuel combustion source emissions, which are
a relatively small portion of total emissions, increased by approximately 30 percent over the period.
This increase is probably the result of higher levels of residential fuel combustion. Solid waste
emissions of VOC declined by 40 percent over the period.
10.1.1.5. Carbon Monoxide
Total emissions of carbon monoxide declined by 39 percent over the period 1970-1988. Trans-
portation emissions, by far the major source, decreased by 44 percent as a result of emission controls
on motor vehicles, despite an increasing number of vehicles and miles driven. Stationary fuel
combustion sources, on the other hand, increased by 64 percent from 1970 to 1988, due in part to
increased levels of residential wood burning. Industrial source emissions declined by 48 percent due
to the elimination of outdated processes and limited application of pollution controls. Solid wastes,
which have historically accounted for the second largest share of carbon monoxide air emissions,
declined by 43 percent over the period.
10.1.1.6. Lead
Over the period 1970-1988, emissions of lead declined by over 96 percent. Transportation
emissions, which accounted for over 80 percent of total lead emissions in 1970, declined by more
than 98 percent from 1970 to 1980 due to the move towards unleaded gasoline. Emissions from
industrial and stationary fuel combustion sources, which are the second and third largest sources of
airborne lead, respectively, each declined by more than 90 percent over the period as a result of
pollution control requirements. Emissions from solid wastes declined by 63 percent over the period.
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10-4
Environmental Investments
10.1.2. Effects of Pollution Controls on Air Emissions
Table 10-2 shows the estimated impact that air pollution controls have had on emissions of the
six criteria air pollutants or their precursors. Actual emissions in each of the years 1984-88 are
compared to estimates of emissions that would have occurred in these years if pollution controls
pursuant to the Clean Air Act had not been introduced. Figure 10-1 shows actual emissions for years
1984-1988 as apercentage of hypothesized emissions in these years at the 1970 level of control.
The data indicate that by 1984 air pollution controls had resulted in substantial reductions in air
emissions for all of the criteria air pollutants from levels that would have been observed in the
absence of controls:
ACTUAL EMISSIONS AS A PERCENTAGE OF EMISSIONS
USING 1970 LEVE
Particulate
Sulfur
Nitrogen
Volatile Organic
Carbon
Year
Matter
Dioxide
Oxides
Compounds
Monoxide
Lead
1984
33
71
82
60
56
19
1988
30
58
72
58
43
3
,S OF CONTROL
For example, particulate matter emissions were 33 percent of what they would otherwise have been
without the introduction of additional controls since 1970. In other words, pollution controls adopted
since 1970 eliminated an estimated 67 percent of the particulates that would otherwise have been
emitted into the atmosphere in 1984. By this measure, there has been continued improvement in air
emissions since 1984, as shown in Figure 10-2, which illustrates actual emissions in 1988 as a
percentage of estimated 1988 emission at the 1970 level of control.
10.1.3. Ambient Air Quality
Figures 10-4 through 10-9 show boxplot trends in ambient air concentrations of the six criteria
air pollutants—particulates, sulfur dioxide, nitrogen dioxide, ozone, carbon monoxide and
lead—between the years 1979 and 1988.2 Air quality data before the mid-1970s are of questionable
quality, and thus are not included in the estimated trends. Below, the boxplots are used to examine
trends in average ambient pollutant concentrations over time and to compare estimated concentrations
with the NAAQS for each pollutant.
Taken as a whole, the data show a downward national trend in average ambient concentrations
for the criteria air pollutants over the ten year period. Annual average concentration of particulates
fell by over 20 percent over the period; sulfur oxide concentrations by over 35 percent; carbon
monoxide concentrations by about 32 percent; and lead concentrations by 88 percent. Moreover,
2 Refer to Figure 10-3 for an explanation of the plotting conventions used in the boxplots.
November 1990
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Environmental Trends
10-5
except in the case of ozone, between 75 and 90 percent of all sites sampled showed average pollutant
concentrations less than or equal to the NAAQS for each pollutant.
There are many regions of the country that are not in compliance with one or more NAAQS,
however. In 1987, an estimated 21.5 million people lived in counties where average particulate levels
were above the NAAQS for particulate matter; 1.6 million people lived in areas that exceeded the
sulfur dioxide standards; 29.4 million people lived in areas that exceeded the carbon monoxide
standards, 7.5 million people lived in areas that exceeded the standard for nitrogen dioxide level; 2.8
million people lived in areas that exceeded the lead standard; and 88.6 million people lived in areas
where ozone levels were above the NAAQS level.
10.2. WATER QUALITY
In recent years, pollutant loadings for both industrial and municipal point source of water
pollution have been well below those experienced in the early 1970s. Municipal point source
improvements are primarily the result of better control technology. Industrial point source
improvements are also the result of increased and improved control technology, as well as manufac-
turing process changes and increased discharges to public treatment facilities. While municipal
discharges are now well below those experienced in 1970, they have been steadily increasing in
recent years. Moreover, the available evidence suggests that improvements in in-stream water quality
resulting from decreased point source pollution loadings have been negated to a large extent by
increasing pollution loadings from non-point sources. Water pollution discharges and estimates of
ambient water quality are discussed in more detail below.
10.2.1. Discharges
Data on pollutant discharges to water bodies are summarized in Tables 10-3 through 10-5. The
data, which shows direct discharges from municipal and industrial point sources as well as non-point
sources, are discussed below.
10.2.1.1. Municipal
Table 10-3 presents data on municipal treatment plant discharges of total suspended solids (TSS)
and biological oxygen demand (BOD), two traditional water pollution indicators, in selected years
over the period 1960-1988. The population levels served by municipal systems in these years are also
shown in the table. The data shows that discharges of both pollutants increased significantly over the
period 1960-1973. By 1980, the level of both pollutants had fallen considerably, however, but this
was followed by a gradual rise in pollutant loadings over the 1980s. By 1988, municipal discharges
of both TSS and BOD were comparable to those experienced in the 1960s, but were still well below
the year 1973 levels.
The increase in pollution loadings from municipal treatment plants in recent years is probably due
to a large increase in the volume handled by such facilities. This is the result of an increase in the
number of people served by municipal systems, as well as a significant increase in the amount of
November 1990
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10-6
Environmental Investments
industrial and commercial wastes, both pretreated and untreated, being processed by municipal
treatment plants. The increase in the volume of wastes handled by municipal systems would probably
have resulted in much greater discharges of pollutants had it not been for expanded pollution controls.
Improved water pollution controls have resulted in "cleaner" discharges from these facilities in terms
of lower concentrations of pollutants per volume of wastewater released into waterways.
10.2.1.2. Industrial
Table 10-4 shows direct discharges of TSS and BOD in 1973 and the period 1982-1987 for major
industrial categories. The data show that for these industries, total industrial discharges of BOD
declined by 93 percent over the two time periods, and discharges of suspended solids declined by 96
percent. One important reason for these declines is that more industrial wastes are being discharged
to municipal treatment plants instead of directly to water bodies. Currently, only about 27 percent
of total BOD discharges from these industries are made directly to water bodies, and only 39 percent
of suspended solids discharges.3 Better and more widely applied control technology and treatment
techniques as well as manufacturing process changes are also responsible for the dramatic reduction
in direct discharges from industrial sources.
Total municipal and industrial water discharges in 1973 and in the mid-1980s are shown
graphically in Figure 10-10 in order to highlight the significant reductions in conventional pollutant
discharges overtime. The biggest reduction was in discharges of total suspended solids, although
there was also a significant reduction in biological oxygen demand over this period.
10.2.1.3. Non-point Source
Table 10-5 shows data on discharges of four conventional water pollutants—biological oxygen
demand, suspended solids, nitrogen, and phosphorus—from various non-point and point sources in
years 1973 and 1980. The non-point sources include agriculture, silviculture, and urban runoff. The
point sources include municipal and industrial discharges. The table also shows the shares of total
discharges of conventional pollutants accounted for by non-point and point sources, respectively, in
each of the two years. Comparisons of the point and non-point sources of discharges are useful even
though they are limited somewhat by gaps in the available data.
The data indicate that discharges of each pollutant except nitrogen increased significantly
between 1973 and 1980. Nitrogen discharges are shown to have decreased slightly over the period
due to the reported year 1973 nitrogen loadings from silviculture, which are eighteen times that
reported for 1980. This large discrepancy may well be the result of differences in the sampling
methodology used to measure forest discharges of nitrogen over the two years, however. The data
also show that the increases in year 1980 discharges over those experienced in 1973 are the result of
3 U.S. Environmental Protection Agency, Summary of Effluent Characteristics and Guidelines
for Selected Industrial Point Source Categories, Office of Water Regulations and Standards,
October 1988.
November 1990
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Environmental Trends
10-7
increased non-point source loadings. In general, point source discharges decreased from 1973 to
1980, but this was more than made up for by large increases in non-point source discharges. The
increase in non-point source discharges was driven primarily by agricultural discharges, which
historically have accounted for the bulk of all non-point loadings. In 1980, agricultural discharges
of each of the conventional pollutants listed in Table 10-5 were more than 60 percent of those
experienced in 1973.
Taken as a whole, the data indicate that discharges of conventional water pollutants have been
increasing over time. Moreover, while point-source discharges appear to be decreasing, non-point
source loadings are increasing and more than offsetting point source gains. Finally, the data suggests
that non-point sources account for the vast majority of all discharges of conventional water pollutants.
This conclusion is backed by more recent research that found that non-point sources account for
almost 100 percent of total sediment loadings, 84 percent of phosphorous loadings, and 82 percent
of nitrogen loadings.4
10.2.2. Ambient Water Quality
Figure 10-11 includes the results of water pollution sampling at various stations around the
country in years 1974 to 1981. The table shows the number of sampling stations that recorded
increased or decreased levels of a variety of common water pollutants and trace elements in some year
in the period 1974-1981 as compared to the previous most recent sampling results. The results for
several pollutants are discussed below.
Stations with observed decreases in dissolved oxygen deficits, which result from BOD loadings,
outnumbered stations with increasing values three to two, suggesting success in point source control
by industry over the period. Decreases in fecal bacteria were also widespread and might be attributed
to the success of municipal treatment systems.
The summary conclusions of the source5 for the Figure 10-11 data indicate that much of these
point source gains have been offset by increases in non-point source loadings. Some of these
conclusions with regards to non-point sources discharges follow below.
Increases in suspended sediments are closely associated with land uses that historically have had
high soil erosion rates. In other words, non-point sources are primarily responsible for the observed
increases in this pollutant. Decreases in phosphorous levels over the period were attributed to point
source controls, while phosphorus increases were attributed to increased levels of non-point source
loadings. Nitrates increased significantly and were strongly associated with fertilized land and land
4 Leonard P. Gianessi, et al., Nonpoint Source Pollution: Are Cropland Controls the Answer?,
Resources for the Future, 1986.
5 R.A. Smith, et al., "Water Quality Trends in the Nation's Rivers", Science, V. 235, March
1987.
November 1990
-------
10-8
Environmental Investments
supporting livestock. Additionally, atmospheric deposition of nitrogen, although small, was found
to be significant in the East and Midwest regions of the country. Increases in sodium, chloride, and
sulfate were attributed to the use of highway salts and to surface coal mining. Increased levels of
arsenic and cadmium suggest increased atmospheric deposition from fossil fuel combustion. The
significant decreases shown for lead were attributed to the decline in atmospheric deposition of lead
from vehicular fuel combustion.
10.3. LAND QUALITY
10.3.1. Hazardous Waste Management
Table 10-6 presents estimates of hazardous waste generation and management in years 1981 and
1985 based on two national surveys conducted in the early and mid-1980s, respectively.6 Direct
comparison of the two data sets are limited somewhat by changes in the definition of hazardous waste
and waste generators for the year 1981 and 1985 data. Some general comparisons can be made,
however, and these are useful because they span years before and after much of the first phase of
RCRA regulations were put in place. Most of the current RCRA regulatory program was
implemented after 1985, however, and thus is not reflected in the data.
The data show that only slight more waste was generated in 1985 than in 1981. The slightly
higher waste generation reported in 1985 was most likely due to the wider definition of hazardous
waste used in the later survey and its inclusion of more than three times the number of small-quantity
generators than were included in year 1981 survey. The relative shares of total wastes accounted for
by different classes of generators changed somewhat between the two years, however. While the
share of total waste generation accounted for by chemical and petroleum industries was slightly more
than 70 percent in each of the two years, the share accounted for by metals-related industries dropped
significantly from 1981 to 1985. The data also show that there were more commercial treatment,
storage, and disposal facilities in 1981 than in 1985. Some facilities probably closed after 1981 due
to lack of certification or profitability, or concern about more stringent prospective regulation.
Table 10-7 includes data on the use of the various waste treatment and disposal options for years
1983-1987 collected in a national survey of selected commercial hazardous waste management firms.7
The data show an increase in the use of incineration and landfill disposal options over the period, and
a decrease in the use of deep-well injection. Recently promulgated rules restricting the land disposal
6 The 1981 data are from: Westat, Inc., National Survey of Hazardous Waste Generators and
Treatment, Storage, and Disposal Facilities Regulated Under RCRA in 1981, Prepared for the
US EPA Office of Solid Waste, April 1984. The 1985 data are from: Research Triangle
Institute, 1986 National Screening Survey of Hazardous Waste Treatment, Storage, Disposal,
and Recycling Facilities, Prepared for the US EPA Office of Solid Waste, September 1988.
7 ICF, Inc., 1986-1987 Survey of Selected Firms in the Commercial Hazardous Waste
Industry, Prepared for the US EPA Office of Policy Analysis, 1988.
November 1990
-------
Environmental Trends
10-9
of hazardous waste will most likely increase the use of waste recovery, treatment, and incineration
in future years. Much waste will continue to landfilled, however, until alternative disposal options
become more widely available.
10.3.2. Hazardous Waste Remediation
Table 10-8 presents data on EPA activities under the Superfund Program, which is directed to
cleaning-up abandoned hazardous waste sites. The data show that first-starts for hazardous waste
removals, site investigation studies, remedial design studies, and remedial actions {i.e., site clean-ups)
increased steadily throughout the 1980s except for a drop in 1985-1986, when the controlling
legislation was reauthorized. It should be noted that each type of activity takes well beyond one year
to complete, and some activities, such as remedial actions, require several years for completion. Data
for private sector activities under the program are not shown in the table. Private actions have
increased steadily in recent years, but currently represent only about one-third of all Superfund
activity.
10.3.3. Underground Storage Tanks
Table 10-9 shows data on the existing world of underground storage tanks and estimated rates of
future growth in the use of different types of tanks. Bare steel tanks, currently the most widely used
type, are expected to be phased out rapidly over the next several years and replaced with more leak
resistance tank varieties required by the recently promulgated technical standards rule. Figure 10-12
shows the decline in the production of bare steel tank over the period 1980-1987. The figure also
shows that production of protected tanks increased from roughly 15 percent of total tank production
in 1980 to over 60 percent in 1987. Table 10-10 shows production data for protected tanks over the
period 1980-1987.
10.4. EXPOSURE TO CHEMICALS
10.4.1. Toxic Substances
More than 65,000 chemical substances are licensed for manufacture or processing for commercial
use in the United States. Figure 10-14 shows that notifications of intent to bring new chemicals into
domestic production and/or use have been received by EPA for over 1000 new chemicals each year
since 1982. This level of new chemical introduction is up sharply from levels experienced in the
1970s and early 1980s, and is expected to continue into the future. By the end of fiscal year 1985,
EPA had received a cumulative total of 6,200 pre-manufacturing notices for new chemical
introductions; this had jumped to 9,132 by the end of fiscal year 1987, however. As of 1987, EPA
had prohibited or restricted the manufacture, use, or distribution of a total of 553 new chemicals.8
8 U.S. Environmental Protection Agency, Environmental Progress and Challenges: EPA's
Update, EPA-230-07-88-033, August 1988.
November 1990
-------
10-10
Environmental Investments
Table 10-11 shows domestic production levels for selected industrial chemicals over the period
1960-1984. Generally, the data show increasing production of chemicals over time except for
polychlorinated biphenols (PCBs) and benzene. Production of PCBs began to fall in 1973 and
eventually ceased in 1978 as a result of an EPA ban on the chemical. (Figure 10-13 shows the
persistence of PCBs in human tissue over the period 1972-1973). Benzene production also has
decreased since 1980, reflecting EPA action to limit the uses of this chemical.
10.4.2. Pesticides
Table 10-12 shows data on annual use of pesticides in the U.S. and the estimated agricultural
share over the period 1964-88. Table 10-13 shows total U.S. pesticide use by type over the period
1979-88. The data indicate that after increasing steadily over the 1960s and 1970s, pesticide use
peaked in 1981 and has since fallen off somewhat. This is the result of the stabilization of agricultural
pesticide use in recent years, which currently accounts for approximately 75 percent of total pesticide
use. This trend towards lower use is probably the result of several factors, including lower application
rates due to more efficient pesticide use and the introduction of more potent pesticides. The
efficiency of pesticide use has improved as a result of more and better certification programs, more
widespread use of integrated pest management techniques, and more detailed pesticide labelling.
Increase interest in low input agricultural methods and reduced agricultural commodity price supports
may further depress pesticide use in future years.
Table 10-14 shows the number of active ingredients that have been registered under FIFRA since
1967 for a variety of different pesticide types. Although the data show no clear trends, pesticide
registration in the second decade was 20 percent less than experienced over the first. Also, there were
more registrations of insecticides and herbicides than for other pesticides, with insecticides having
a slightly higher total than herbicides. Since 1985, however, the registration of insecticides has
dropped off while the registration of herbicides has increased. This may reflect the shift in usage
patterns between the two pesticide types.
Figure 10-15 maps the presence of selected banned pesticides in human tissue over the period
1970-1983. The data show that some pesticides remain stored in human bodies, particularly in fatty
tissue, long after their use has ceased.
November 1990
-------
Environmental Trends 10-11
Fig. 10-1: ACTUAL EMISSIONS AS A PERCENTAGE OF HYPOTHESIZED EMISSIONS
AT THE 1970 LEVEL OF CONTROL
100
80
60
c
CD
0
1
CD
a
40
20
•Ht
0
1984
PM
_J
1985
SOx
« ««»» »i* » wit Malaga
*** * mm i net a mm * mm t urn » w « mm «
-------
10-12
Environmental Investments
Fig. 10-2: ACTUAL 1988 EMISSIONS AS A PERCENTAGE OF ESTIMATED 1988 EMISSIONS
AT THE 1970 LEVEL OF CONTROL
100
80 -
60 -
40
20 -
PM S02
1988 ACTUAL
NO;
VOC
CO
Pb
REDUCTIONS FROM ESTIMATED 1988
EMISSIONS USING 1970 CONTROLS
- 20
Source: Table 10-2
November 1990
-------
Environmental Trends
Fig. 10 3: ILLUSTRATIONS OF PLOTTING CONVENTIONS FOR BOXPLOTS
10-13
s\
¦«
95th PERCENTILE
90th PERCENTILE
75th PERCENTILE
COMPOSITE AVERAGE
MEDIAN
25th PERCENTILE
10th PERCENTILE
5th PERCENTILE
Source: U.S. EPA, National Air Quality and Emissions Trends Report: 1988, Office of Air Quality
Planning and Standards, March 1990.
November 1990
-------
Environmental Investments
Fig. 10-4: ANNUAL GEOMETRIC MEAN TOTAL SUSPENDED
PARTICULATE CONCENTRATIONS
CONCENTRATION. UQAf*
100-
90"
80-
70-
60-
50-
40-
30-
20-
10-
0
T750 SITES
:—1—1—I—1—1~±
NAAQSj
H-....
I f f f V T I
1979 1980 1981 1982 1983 1984 1985 1986 1987 1988
Source: U.S. EPA, National Air Quality and Emission Trends Report: 1988, Office of Air Quality
Planning and Standards, March 1990.
November 1990
-------
Environmental Trends 10-15
Fig. 10-5: ANNUAL MEAN SULFUR DIOXIDE CONCENTRATIONS
CONCENTRATION, PPM
0.040
0.035
574 SITES
0.030
0.025
• NAAQS
-------
10-16 Environmental Investments
Fig. 10-6: ANNUAL MEAN NITROGEN DIOXIDE CONCENTRATIONS
CONCENTRATION PPM
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0.00
1
— * *
I 1 I
116 SITES
NAAOS
i I
I i I
1979 1980 1981 1982 1983 1984 1985 1986 1987 1988
Source: U.S. EPA, National Air Quality and Emissions Trends Report: 1988, Office of Air Quality
Planning and Standards, March 1990.
November 1990
-------
Environmental Trends
Fig. 10-7: ANNUAL SECOND-HIGHEST DAILY MAXIMUM
1-HOUR OZONE CONCENTRATIONS
10-17
CONCENTRATION, PPM
0.30
0.25
0.20
0.15
0.10
0.05
0. 00
1979 1980 1981 1982 1983 1984 1985 1986 1987 1988
Source: U.S. EPA, National Air Quality anc/ Emissions Trends Report: 1988, Office of Air Quality
Planning and Standards, March 1990.
November 1990
-------
10-18
Environmental Investments
Fig. 10-8: ANNUAL SECOND-HIGHEST NONOVERLAPPING 8-HOUR
AVERAGE CARBON MONOXIDE CONCENTRATIONS
20
15
CONCENTRATION, PPM
10 -
248 SITES
*
I I
L1 i
Jap* fi j* -HAAOS
Iff
5L
-x
f I f
1979 1980 1981 1982 1983 1984 1985 1986 1987 1988
Source: U.S. EPA, National Air Quality and Emission Trends Report: 1988, Office of Air Quality
Planning and Standards, March 1990.
November 1990
-------
Environmental Trends
10-19
Fig. 10-9: ANNUAL MAXIMUM QUARTERLY AVERAGE LEAD CONCENTRATIONS
2.5
2
1.5
1
0.5
0
1979 1980 1981 1982 1983 1984 1985 1986 1987 1988
CONCENTRATION, UQAr
139 SITES
i
Source: U.S. EPA, National Air Quality and Emissions Trends Report: 1988, Office of Air Quality
Planning and Standards, March 1990.
November 1990
-------
10-20 Environmental Investments
Fig. 10-10: MUNICIPAL AND INDUSTRIAL WATER DISCHARGES IN 1973 AND THE MID-1980S
1973 TSS
Source: Tables 10-3 and 10-4
80s TSS 1973 BOD
TSS is total suspended solids
BOD is biochemical oxygen demand
80s BOD
November 1990
-------
Environmental Trends
Fig. 10 11: WATER QUALITY TRENDS, 1974-1981
10-21
Decreases
Increases
Fecal Colif. Bact.
Fecal Strep. Bact.
Sulfate
Nitrate
Phosphorus
Calcium
Magnesium
Sodium
Potassium
Chloride
Susp. Sediment
Diss. Oxy. Defic.
Arsenic
Cadmium
Chromium
Lead
Iron
Manganese
Mercury
Selenium
Zinc
-100 -75 -50 -25 0 25 50 75 100 125
Number of Stations
Source: R. A. Smith et. al, "Water Quality Trends in the Nation's Rivers", Science V. 235, March
1987.
November 1990
-------
10-22 Environmental Investments
Fig. 10-12: STEEL TANK VERSUS PROTECTED TANK PRODUCTION, 1980-1987
120
80 81 82 83 84 85 86 87
Year
HI Bare Steel * Protected Tanks
.Includes unregulated tanks
Source: Fiberglass Petroleum Tank and Pipe Institute, Technomics, STI registration files.
November 1990
-------
Environmental Trends
Fig. 10-13: PERSISTENCE OF PCBs IN HUMANS, 1972-1983
10-23
While Nearly Everyone Now Has "Trace"
Levels of PCB'S...
100
Percent of population with trace PCB levels
72 73 74 75 76 77 78 79 80 81 82 83
.The Percentage of Population with "High" Levels
Has Gone Down
10
Population with "high" PCB levels
72 73 74 75 76 77 78 79 80 81 82 83
Source: U.S. EPA, Environmental Progress and Challenges: EPA Update, Office of Policy Planning
and Evaluation, August 1988.
November 1990
-------
10-24
Environmental Investments
Fig. 10-14: TRENDS IN PRE-MANUFACTURE NOTICES (PMNS) FOR NEW CHEMICALS
RECEIVED BY EPA, 1979-1985
to
1,600
1,400 -
1,200 -
1,000
CL
O goo
©
_Q
E
3
600 -
400 -
200
79 80 81 82 83 84 85
Domestic Chemicals
Imported Chemicals
Source: U.S. EPA, Chemical Control in the United States: Accomplishments Under the New Chemicals
Program, Office of Toxic Substances, October 1986.
November 1990
-------
Environmental Trends
10-25
Fig. 10-15: CONCENTRATIONS OF SELECTED PESTICDES IN HUMAN TISSUE
IN THE U.S., 1970-1983
c
o
5
a
a.
t/i
t:
ra
Q.
DDT
0.3
0.25
Dieldrin
0.2
0.15
0.1
Heptachlorepoxide
1983
1980
1975
1970
1972- Most uses of DDT cancelled.
1974- Most uses of Dieldrin cancelled.
1983- Most uses of heptachlor cancelled or registrations denied.
Source: Reprinted from Conservation Foundation, State of the Environment: A View Towards the 1990s,
1987.
November 1990
I
-------
10-26
Environmental Investments
Table 10-1: NATIONAL AIR EMISSIONS ESTIMATES BY SOURCE CATEGORY FOR SELECTED YEARS 1940-1988
(teragrams)
Pollutant/Source Category
1940
1950
1960
1970
1975
1980
1983
1984
1985
1986
1987
1988
Particulates
23.1
24.9
21.6
18.5
10.6
8.5
7.1
7.4
7.1
6.8
7.0
6.9
Transportation
2.7
2.1
0.7
1.2
1.3
1.3
1.3
1.3
1.4
1.4
1.4
1.4
Sta. Source/Fuel Combus.
7.5
7.0
5.7
4.6
2.8
2.4
2.0
2.1
1.8
1.8
1.8
1.7
Industrial Process
8.7
12.7
12.5
10.5
5.2
3.3
2.4
2.8
2.8
2.5
2.5
2.6
Solid Waste/Misc.
4.2
3.1
2.7
2.2
1.3
1.5
1.4
1.2
1.1
1.1
1.3
1.2
Sulfur Oxides
17.6
19.8
19.7
28.3
25.8
23.4
20.7
21.5
21.1
20.9
20.6
20.7
Transportation
2.9
2.3
0.4
0.6
0.7
0.9
0.8
0.8
0.9
0.9
0.9
0.9
Sta.Source/Fuel Combus.
11.0
12.9
14.0
21.3
20.2
18.7
16.7
17.4
17.0
16.9
16.6
16.4
Industrial Process
3.7
4.6
5.3
6.4
5.0
3.8
3.3
3.3
3.2
3.1
3.2
3.4
Solid Waste/Misc.
0.5
0.5
0.5
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Nitrogen Oxides
6.9
9.4
13.0
18.5
19.5
20.9
19.3
19.8
19.8
19.0
19.3
19.8
Transportation
2.3
3.6
5.1
8.0
9.3
9.8
8.9
8.8
8.9
8.3
8.0
8.1
Sta. Source/Fuel Combus.
3.4
4.7
6.7
9.1
9.3
10.1
9.6
10.2
10.2
10.0
10.5
10.8
Industrial Process
0.2
0.3
0.5
0.7
0.7
0.7
0.5
0.6
0.6
0.6
0.6
0.6
Solid Waste/Misc.
1.0
0.8
0.7
0.7
0.2
0.3
0.3
0.3
0.2
0.2
0.2
0.3
Volatile Organic Compounds
15.2
18.1
21.0
25.0
21.1
21.1
19.3
20.3
19.1
18.3
18.6
18.6
Transportation
4.7
6.8
9.4
10.3
8.8
7.5
7.1
7.2
6.9
6.5
6.4
6.1
Sta. Source/Fuel Combus.
1.8
1.3
0.8
0.6
0.6
0.9
1.0
1.0
0.9
0.9
0.9
0.9
Industrial Process
3.3
5.4
6.3
8.9
8.3
9.2
7.9
8.8
8.5
8.1
8.3
8.5
Solid Waste/Misc.
5.4
4.6
4.5
5.1
3.4
3.5
3.3
3.3
2.8
2.8
3.0
3.0
Carbon Monoxide
82.6
87.6
89.7
101.4
84.1
79.6
74.5
71.8
67.0
63.1
64.1
61.2
Transportation
29.9
44.7
58.2
74.4
65.0
56.1
52.4
50.6
47.9
44.6
43.2
41.2
Sta. Source/Fuel Combus.
16.3
11.6
7.1
4.5
4.3
7.4
8.2
8.3
7.4
7.5
7.6
7.6
Industrial Process
6.6
10.5
9.3
8.9
6.9
6.3
4.3
4.7
4.4
4.3
4.5
4.7
Solid Waste/Misc.
29.8
20.8
15.1
13.6
7.9
9.8
9.6
8.2
7.3
6.7
8.8
7.7
Lead (10s of short tons/yr)
NA
NA
NA
203.8
147.0
70.6
46.4
40.1
21.1
8.6
8.0
7.6
Transportation
163.6
122.6
59.4
40.8
34.7
15.5
3.5
3.0
2.6
Sta. Source/Fuel Combus.
9.6
9.3
3.9
0.6
0.5
0.5
0.5
0.5
0.5
Industrial Process
23.9
10.3
3.6
2.4
2.3
2.3
1.9
1.9
2.0
Solid Waste/Misc.
6.7
4.8
3.7
2.6
2.6
2.8
2.7
2.6
2.5
November 1990
-------
Environmental Trends
10-27
Footnotes to Table 10-1
Note: To obtain tons/yr, divide number by 1.1 — they are now in teragrams/yr. NA = Not Available
Source: U.S. EPA, National Air Pollutant Emission Estimates 1940-1988, Office of Air Quality Planning and Standards, National Air Data Branch, March 1990, and other reports in this series
1984-1987.
November 1990
-------
10-28
Environmental Investments
Table 10-2: EFFECTS OF AIR POLLUTION CONTROLS ON 1984-1988 EMISSIONS
(millions of metric tons)
1984
1985
1987
PM
SO,
Actual Emissions
Estimated Emissions Using 1970 Level of Control
Actual Emissions as a Percent of Emissions Using 1970 Level of Control
Actual Emissions
Estimated Emissions Using 1970 Level of Control
Actual Emissions as a Percent of Emissions Using 1970 Level of Control
NO„
Actual Emissions
Estimated Emissions Using 1970 Level of Control
Actual Emissions as a Percent of Emissions Using 1970 Level of Control
VOC
CO
Pb
Actual Emissions
Estimated Emissions Using 1970 Level of Control
Actual Emissions as a Percent of Emissions Using 1970 Level of Control
Actual Emissions
Estimated Emissions Using 1970 Level of Control
Actual Emissions as a Percent of Emissions Using 1970 Level of Control
Actual Emissions
Estimated Emissions Using 1970 Level of Control
Actual Emissions as a Percent of Emissions Using 1970 Level of Control
7.0
21.1
33%
21.4
30.2
71%
19.7
23.9
82%
21.5
36.0
124.6
56%
.040
.207
19%
7.3
21.6
34%
20.7
32.6
63%
20.0
24.3
82%
21.3
35.8
59%
67.5
125.7
54%
.021
.223
21.3
32%
21.2
32.0
19.3
24.6
78%
19.5
35.7
55%
127.4
.227
4%
7.0
22.1
32%
20.4
33.6
61%
19.5
25.5
76%
19.6
34.9
56%
61.4
136.4
45%
.008
.230
4%
23.1
30%
20.7
35.6
58%
19.8
27.5
72%
18.6
32.2
58%
61.2
142.0
43%
.007
.233
3%
Footnotes to Table 10-2
Metric tons divided by 1.1 equals short tons.
Sources:
U.S. EPA, National Air Pollutant Emission Estimates 1940-1988, Office of Air Quality Planning and Standards, National Air Data Branch, March 1990, and other reports
in this series 1984-1987.
November 1990
-------
Environmental Trends
Table 10-3: MUNICIPAL WASTE DISCHARGES IN SELECTED YEARS 1960-1988
(millions of tons)
10-29
Constituent
Loadings
Population
Source No.
Year
TSS
BOD
Served(106)
3
1988
2.131
2.359
176
4
mid-80s
1.311
1.352
172(est)
5
1983
1.234
1.236
169
5
1980
1.161
1.163
159
6
1973
3.000
2.900
148(est)
7
1970
2.596
2.882
144
8
1963
2.169
2.398
120
5
1960
1.987
2.206
110
Footnotes to Table 10-3
TSS is total suspended solids.
BOD is biological oxygen demand.
For 1988 loadings calculations: Removed amounts were given; 76 and 80 percent removable rates were assumed for BOD and TSS respectively.
For 1980,1983 calculations: Removal rates (76/BOD, 80/TSS) were given; raw loads 0.167 lbs. BOD/per/day and 0.2 lbs. SS/per/day were assumed.
For 1960,1970 loadings calculations: for BOD, 0.167 lbs/per/day and 34 percent removal assumed; for TSS, assumed 0.2 lbs/per/day and 51 percent removal assumed.
November 1990
-------
10-30
Environmental Investments
Table 10-4: INDUSTRIAL WASTE DISCHARGES IN 1973 AND 1982-1987
(millions of tons)
1973 1982-1987
Industry
BOD
TSS
BOD
TSS
Pulp and Paper
0.949
1.117
0.091
0.150
Org. Chem., Plastics, & Synthetics
0.718
0.054
0.031
0.050
Petroleum Refining
0.057
0.015
0.006
0.012
Iron and Steel
0.020
1.283
—
0.023
Inorganic Chemicals
0.003
0.573
—
0.030
Textiles
0.063
0.055
0.004
0.009
Ore Mining and Dressing
—
3.444
—
0.011
Leather Tanning
0.020
0.022
—
—
Total
1.830
6.563
0.132
0.285
Footnotes for Table 10-4
TSS is total suspended solids.
BOD is biological oxygen demand.
Source: U.S. EPA, Summary of Effluent Characteristics and Guidelines for Selected Industrial Point Source Categories, Office of Water Regulations and Standards, October 1988,
andR. A. Luken and E. H. Pechan, Water Pollution Control: Assessing the Impacts and Costs of Environmental Standards, Praeger Press, 1977.
November 1990
-------
Environmental Trends
Table 10-5: NON-POINT SOURCE DISCHARGES IN 1973 AND 1980
(millions of tons)
10-31
1973 1980
Source
BOD
SS
N
P
BOD
SS
N
P
NON-POINT SOURCE (NPS)
Agriculture
8.57
1,799
4.26
1.49
14.00
3,090
6.80
2.64
Urban Runoff
1.66
0.03
0.64
0.09
0.50
20
0.39
0.09
Forest
NA
NA
2.70
0.04
0.80
256
0.15
0.02
Total Non-Point Source
10.23
1,800
7.63
1.63
15.3
3,366
7.34
2.75
POINT SOURCE (PS)
Municipal
2.90*
3.00*
1.00
0.23
1.16*
1.16*
NA
NA
Industrial
1.83**
6.56**
NA
NA
0.13**
0.28**
NA
NA
Total Point Source
4.73
9.56
1.00
0.23
1.29
1.45
—
...
Total NPS + PS
14.96
1,809
8.63
1.86
16.59
3,367
7.34
2.75
Percent NPS (%)
68
99
88
88
92
99
...
...
Footnotes to Table 10-5
BOD is biological oxygen demand.
SS is suspended solids.
N is nitrogen.
P is phosphorus.
* from Table 10-3.
** from Table 10-4.
NA = Not Available.
Sources: 1973 data are from U.S. National Commission on Water Quality, Public Law 92-500 Water Quality Analysis and Environmental Impact Assessment: Technical Report, March
1976.
1980 data are from U.S. Council on Environmental Quality, Environmental Quality, Eighteenth Annual Report, 1987-88.
November 1990
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10-32 Environmental Investments
Table 10-6: RCRA HAZARDOUS WASTE GENERATION AND MANAGEMENT IN 1981 AND 1985
(millions of metric tons)
1981
1985
RCRA-regulated Hazardous Waste Generated
264
272
Chemical & Petroleum (SIC 28,29)
71%
72%
Metal Related Industries (SIC 33-37)
22%
4%
Other Industries
7%
24%
Waste Management Facilities3
4818
2971
Treatment
1495
1597
Storage
4299
2585
Disposal
430
817
Recycling
**
846
Footnotes to Table 10-6
a Some facilities are counted more than once because they perform more than one waste handling function.
** Although no recycling facilities were specifically tabulated in 1981, 43 percent of generators surveyed indicated that they were recycling.
Sources: The 1981 data are from Westat, Inc., National Survey of Hazardous Waste Generators and Treatment, Storage, and Disposal Facilities Regulated
under RCRA in 1981. Prepared for the U.S. EPA Office of Solid Waste, April 1984.
The 1985 data are from Research Triangle Institute, 1986 National Screening Survey of Hazardous Waste Treatment, Storage, Disposal, and
Recycling Facilities. Prepared for the U.S. EPA Office of Solid Waste, September 1988.
November 1990
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Environmental Trends 10-33
Table 10-7: HAZARDOUS WASTE HANDLED BY SELECTED COMMERCIAL FIRMS, 1983-1987
^thousands of metric tons)
Year
Disposal T echnology
1983
1984
1985
1986
1987
Incineration
169
224
270
352
473
Resource Recovery
313
243
316
264
331
Landfill
1609
2082
2352
2306
2454
Chemical/Biological Treatment
989
1074
1133
950
1014
Solidification
66
76
NA
NA
NA
Deepwell Injection
727
476
416
273
268
Totals
3873
4175
4487
4145
4540
Footnotes to Table 10-7
NA = Not Available.
Source: ICF, Inc., 1986-1987 Survey of Selected Firms in the Commercial Hazardous Management Industry. Prepared for the U.S.
EPA Office of Policy Analysis, 1988.
November 1990
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10-34 Environmental Investments
Table 10-8: SELECTED EPA SUPERFUND ACTIONS, 1981-1988
("First-Starts")
Year
1981
1982
1983
1984
1985
1986
1987
1988
Removals
28
60
129
208
196
175
254
220
Investigation Studies
21
32
112
127
129
37
127
93
Design Studies
5
4
7
16
19
26
70
69
Remedial Actions
0
9
9
16
8
12
35
51
Footnotes to Table 10-8
Source: U.S. EPA, Progress Toward Implementing SuperfundFiscal Year 1987, Office of Emergency and Remedial Response, April 1989, and a later report in
this series dated March 1990.
November 1990
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Environmental Trends
Table 10-9: THE EXISTING UNDERGROUND STORAGE TANK WORLD
10-35
Type ofTank Present Share ofPopulation(%) EstimatedNiunberinExistence(103)a Expected Future Growth Trend
Bare Steel 70-80 900-1,000 Rapid Decrease
Coated with CPb 8 100 Rapid Increase
FRPC 12-15 156-195 Moderate Increase
Composite Corrosion Resistant 5-8 65-100 Moderate Increase
Footnotes to Table 10-9
a. Based on EPA's estimate of 1,381,000 underground storage tank systems in existence.
b. CP= Cathodically protected plastic.
c. FRP = Fiberglass reinforced plastic.
Source: Jacobs Engineering Group, Causes of Release from UST Systems. Prepared for the U.S. EPA Office of Underground Storage Tanks, 1987.
November 1990
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10-36
Environmental Investments
Table 10-10: NEW GENERATION UNDERGROUND STORAGE TANK PRODUCTION, 1980-1987
Year
FRPa
Composite13
STIP3C
1980
9,000
NA
NA
1981
10,000
NA
NA
1982
11,000
NA
NA
1983
12,000
3,000
NA
1984
13,000
6,500
7,000
1985
14,000
8,000
14,000
1986
15,000
10,000
28,000
1987 (est.)
16,000
12,500
45,000
Footnotes to Table 10-10
FRP = Fiberglass reinforced plastic.
STIP3 = Externally plastic coated, cathodically protected.
a. Data from conversation with Ed Neshoff of the Fiberglass Reinforced Plastic Technology Institute.
b. Data from the Association of Clad Tankers.
c. Data from conversation with Wayne Geyer of the Steel Tank Institute.
NA = Not Available.
November 1990
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Environmental Trends
Table 10-11: U.S. PRODUCTION OF SELECTED CHEMICALS, 1960-1972
(millions of pounds)
10-
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
Acrylonitrile
0.2292
0.2495
0.3601
0.4553
0.5942
0.7716
0.7161
0.6708
1.0210
1.1566
1.0393
0.9789
1.1147
Benzene
3.3430
3.9867
3.9442
4.7326
5.3380
6.0447
6.9830
7.0859
7.3110
8.6649
8.2860
7.8649
9.1554
Vinyl Chlorides
1.0370
1.0440
1.3115
1.4352
1.6150
2.000
2.4995
2.4236
2.9689
3.7359
4.0402
4.3358
5.0885
Pthalates
0.3447
0.3765
0.4700
0.5219
0.6014
0.6787
0.7545
0.7839
0.8406
0.8834
0.8551
0.9782
1.1457
PCBs
0.0379
0.0365
0.0384
0.0447
0.0508
0.0605
0.0658
0.0753
0.0753
0.0753
0.0753
0.0753
0.0753
Table 10-11A: U.S. PRODUCTION OF SELECTED CHEMICALS, 1973-1984
(millions of pounds')
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
Acrylonitrile
1.3542
1.4117
1.2146
1.5178
1.646
1.7523
2.0178
1.8299
1.9964
2.0352
2.1462
2.2192
Benzene
10.6233
10.8792
7.4848
10.4184
10.4972
10.8772
12.2271
11.5836
9.7893
7.8119
N/A
N/A
Vinyl Chlorides
5.3511
5.6212
4.1963
5.6769
5.9859
6.9411
6.3888
3.4659
6.8736
4.9018
6.8754
6.0846
Pthalates
1.2031
1.2073
0.9038
1.0429
1.2024
1.2587
1.2910
1.0541
1.1198
0.9416
1.1466
1.1791
PCBs
0.0422
0.0411
0.0297
0.0296
0.0133
0
0
0
0
0
0
0
Footnotes to Tables 10-11 andlO-llA
Source: U.S. Council on Environmental Quality, Environmental Trends, Washington, D.C., 1981, as reproduced in Source 22.
U.S. Environmental Protection Agency, Interagency Testing Committee, unpublished data, 1986. Synthetic organic chemicals for phthalates, acrylonitrile, benzene, and vinyl chloride. Washington,
D.C.
U.S. Environmental Protection Agency, 1976. Toxic Substances Control Act. (Pub. L. 94-469), Section 6. Regulation of hazardous chemicals and mixtures, (e) Polychlorinated biphenyls.
Washington, D.C.
November 1990
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10-38 Environmental Investments
Table 10-12: U.S. CONVENTIONAL PESTICIDE USAGE, TOTAL AND ESTIMATED AGRICULTURAL SECTOR SHARE
(millions of pounds active ingredients')
Year
Total U.S.
Agricultural Sector
Agricultural Sector Shares (percent)
1964
540
320
59
1965
610
335
55
1966
680
350
51
1967
735
380
52
1968
835
470
56
1969
775
430
55
1970
740
430
58
1971
835
495
59
1972
875
525
60
1973
910
560
62
1974
950
590
62
1975
990
625
63
1976
1,030
660
64
1977
1,075
720
67
1978
1,110
780
70
1979
1,150
840
73
1980
1,175
846
72
1981
1,205
860
71
1982
1,100
880
80
1983
953
733
77
1984
1,080
850
79
1985
1,112
861
77
1986
1,096
820
75
1987
1,085
815
75
1988
1,130
845
75
Footnotes to Table 10-12
Note: Excludes wood preservatives, disinfectants, and sulfur.
Source: U.S. EPA, Pesticide Industry Sales and Usage: 1988 Market Estimates,, Office of Pesticide Programs, December 1989.
November 1990
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Environmental Trends 10-39
Table 10-13: U.S. ANNUAL VOLUME OF PESTICIDE USAGE, BY TYPE, 1979-1988
(millions of pounds of active ingredients)
Pesticide Type
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
Herbicide
560
555
570
544
575
675
670
655
645
660
Insecticide
378
395
405
391
255
270
300
295
260
268
Fungicide
106
120
123
119
68
80
82
86
122
132
Other
106
105
107
106
55
55
60
60
60
70
Total
1,150
1,175
1,205
1,160
953
1,080
1,112
1,096
1,087
1,130
Footnote to Table 10-13
Source: Source: U. S. EPA, Pesticide Industry Sales and Usage: 1988 Market Estimates, Office of Pesticide Programs, December 1989.
November 1990
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10-40 Environmental Investments
Table 10-14: NUMBER OF CHEMICALS REGISTERED FOR THE FIRST TIME UNDER FIFRA. BY TYPE. 1967-1988
Year
Insect i c i de
Herb i c i de
Fung i c i de
Bacter i c i de/
SI i m i ci de
Nemat i c i de
Rodent i c i de
Other
Total
Uses
q i stered
Total
Chem i caIs
Req i stered
1967
4
2
2
5
0
2
1
16
16
1968
6
2
5
4
0
0
1
18
18
1969
7
4
0
2
0
0
1
14
14
1970
1
2
2
3
0
0
2
10
10
1971
0
1
1
1
0
1
1
5
4
1972
4
5
6
5
0
0
1
21
21
1973
5
2
4
2
1
0
0
15
13
1974
6
8
6
0
1
1
0
22
22
1975
8
11
5
11
0
0
1
36
35
1976
2
3
2
4
0
0
1
12
12
1977
1
1
0
1
0
0
0
3
3
1978
2
2
0
0
0
0
1
5
5
1979
8
2
4
0
0
1
2
1 7
1 7
1980
4
3
1
0
0
2
1
11
11
1981
4
3
2
1
0
0
6
16
16
1982
5
5
1
1
0
2
3
1 7
1 7
1983
5
5
3
1
0
0
0
14
14
1984
6
1
2
2
0
1
2
14
13
1985
8
1
1
1
0
0
2
13
10
1986
2
7
0
0
1
0
2
12
11
1987
3
5
0
1
1
0
2
12
11
1988
2
5
1
0
1
0
2
11
11
Footnotes to Table 10-14
Source: U.S. EPA, Pesticide Industry Sales and Usage: 1988 Market Estimates, Office of Pesticide Programs, December 1989.
November 1990
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Appendix A—Costs of New Regulations
A-l
APPENDIX A
ESTIMATION OF COSTS FOR NEW AND FORTHCOMING REGULATIONS
Cost estimates are included in this report for the individual regulations and programs listed in
Table 2-3. This appendix lists the following information for each of these:
(a) Current rulemaking status and expected proposal or finalization date;
(b) Particular regulatory option for which costs were estimated if the regulation is not yet final;
(c) Data sources from which the basic cost estimates were derived; and
(d) Summary of the derivation of the cost estimates from the raw data and assumptions used
to apportion costs over time.
The regulation summaries are categorized below according to environmental medium. The
categories are numbered to correspond with the chapters and sections in the main text in which the
regulations are discussed. A brief discussion of regulations for which cost estimates are not included
in this report is included at the end of each media section. Estimates of capital and O&M expendi-
tures over the period 1986-2000 for each of the included regulations are given in the tables
following the regulation summaries.
3. AIR AND RADIATION REGULATIONS
3.1. Air
3.1.1. Stationary Source
Particulate Matter National Ambient Air Quality Standard (Revision)
(a) Status: Final rule (52 FR 24634; July 1, 1987).
(b) Regulatory option: See 52 FR 24634.
(c) Data sources:
(1) Regulatory Impact Analysis on the National Ambient Air Quality Standards for
Particulate Matter, Second Addendum, US EPA Office of Air Quality Planning and
Standards, December, 1986.
(2) Regulatory Impact Analysis on the National Ambient Air Quality Standards for
Particulate Matter, US EPA Office of Air Quality Planning and Standards, February
21, 1984.
(d) Derivation and timing of estimates: Table 4 of Data Source 1 (no page number given)
provides a 1983 present value estimate (calculated using a discount rate of 10 percent) for
November 1990
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2
Environmental Investments
incremental costs of the rule. We converted this into a 1989 present value (using the single
payment present worth factor associated with a 10 percent rate over six years), and then re-
annualized this estimate over 15 years. Data Source 1 did not provide sufficient
information to enable us to dissagregate this annualized cost estimate into fixed and variable
cost components. However, Data Source 2 provides information on the relationship
between capital and annualized costs for a similar regulatory option. Although the costs
estimates from Data Source 2 cannot be used directly because they are outdated, we used
the ratio of capital to annualized costs provided by this source to dissaggregate the annu-
alized cost estimate derived from Data Source 1 into fixed and variable cost components.
We assumed that capital costs would be incurred in equal increments over the years
1987-1989. O&M costs were assumed to phase-in with each increment of capital with a
one year lag.
Lead National Ambient Air Quality Standard (Revision)
(a) Status: Expected proposal date: October 1990.
(b) Regulatory option: 0.5 ug/m3, averaged quarterly.
(c) Data source: Costs Assessment ofRegulatory Alternatives for Lead NAAQS, U.S. EPA
Office of Air Quality Planning and Standards, July 1985.
(d) Derivation and timing of estimates: Table 2 (no page number given) of the data source
reports capital and annualized costs for the 0.5 ug/m3 regulatory option. The data source
also reports that annualized costs were calculated by amortizing capital costs at the rate of
10 percent over 15 years. This information and the capital and annualized costs data were
used to back-out annual O&M costs. We assumed that the rule would be promulgated in
1991 and go into effect in 1993. Capital costs were divided into three equal increments and
placed in years 1991, 1992, and 1993. The O&M costs were assumed to phase-in with each
increment of capital expenditure after a one-year lag.
Acid Rain Control
(a) Status: These costs reflect the Administration's proposed strategy for controlling stationary
source SOx and NQ set out in Tile V of H.R. 3030 and S. 1490 (101st Congress, 1st
Session) which would amend the Clean Air Act.
(b) Regulatory option considered: The costs reflect the high baseline assumption about future
emissions and are associated with annual reductions of 4.1 million tons of S02 below 1980
levels in Phase I (1996-2000) and 8.2 million tons in Phase II (2001-2004). The costs also
reflect the constrained implementation scenario which assumes that emissions trading will
be utilized on an intra-utility basis in Phase II only.
November 1990
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Appendix A—Costs of New Regulations
A-3
(c) Data source: Economic Analysis of Title V (Acid Rain Provisions) of the Administration's
Proposed Clean Air Act Amendments (H.R. 3030/S. 1490), Prepared for the US EPA by
ICF Resources, Inc., September 1989.
(d) Derivation and timing of estimates: Data Source 1 (p. 14) reports year 1996 (Phase I) and
year 2001 (Phase II) annualized costs. The Phase I requirements would become effective
after December 31, 1995. The Phase I annualized cost estimate was thus used to show costs
for years 1996 through 1999. We assumed that in year 1995 fifty percent of the Phase I
annualized costs would be incurred as utilities geared up to meet the Phase I requirements.
Also, we assumed that costs in year 2000 would be fifty percent greater than the Phase I
annualized costs to reflect preparation by utilities to meet the Phase II requirements which
begin in year 2001. Since the annualized costs could not be dissaggregated into fixed and
variable cost components, no capital costs were reported, and the annualized cost estimates
are reported under the O&M cost category starting in year 1995.
Toxic Substances Control (Stationary and Area Sources)
(a) Status: These costs reflect the Administration's strategy for controlling toxic air pollutants
set out in Title III of H.R. 3030 and S. 1490 (101st Congress, 1st Session), which would
amend the Clean Air Act.
(b) Regulatory option: The Title III strategy inlcudes a two-pronged control approach
mandating technology-based standards for all source categories, and additional health-based
standards for those source categories deemed to present unreasonable human health risks
even after compliance with the technology-based standards. Only the former is costed here.
(c) Data source: Analysis of Costs ofHazardous Air Pollutant Controls Under Administration
Bill, H.R. 2585, and S. 816, Prepared for the US EPA Office of Air Quality Planning and
Standards by Energy and Environmental Analysis, Inc., October 27, 1989.
(d) Derivation and timing of estimates: The data source (p. 2-3) reports an annualized cost
range for stationary and area source compliance with the technology- based standards in
year 2003 (the year in which costs would be fully realized). We took the midpoint of the
estimated year 2003 cost range and used it to derive annual costs according to the
methodology discussed below. Title III sets out a schedule for the promulgation of the
technology-based standards which requires that standards for ten source categories be
promulgated within two years after enactment of the law, standards for 25 percent of source
categories within four years, 50 percent of source categories within seven years, and a
decision on final promulgation for the remaining source categories within seven years. We
assumed that the law would be enacted in 1990, and that the percentage of source categories
affected by each particular source category standard would correspond equally with the
percentage of the year 2003 annualized cost incurred as a result of that standard. Title III
November 1990
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A-4
Environmental Investments
also specifies that existing sources will have three years to comply with their relevant
standards. Using this information, we further assumed that the annualized costs for any
particular standard would increase steadily over the three years following promulgation,
reaching a peak in the third year and continuing at this annual level into the future. Using
this methodolgy, we calculated that 3.33 percent of the year 2003 annualized cost would
be incurred in year 1993, 6.66 percent in 1994, 15 percent in 1995, 20 percent in 1996, 25
percent in 1997, 33.33 in 1998, 41.66 percent in 1999, and 50 percent in year 2000. We did
not have enough information to dissaggregate the annualized cost estimates into fixed and
variable costs components; thus, the annualized cost estimates were used and reported under
the O&M cost category.
Ozone National Ambient Air Quality Standard: Full Attainment (Stationary Sources)
(a) Status: These costs reflect the Administration's strategy for ozone NAAQS attainment set
out in Title I of H.R. 3030 (101st Congress, 1st Session), which would amend the Clean Air
Act.
(b) Regulatory option: The various stationary source VOC control measures for which cost
data were collected include: 1) hazardous waste TSDF, 2) municipal landfills, 3) consumer
and commercial use of solvents, 4) marine vessels, 5) new CTG, and 6) progress
requirements. This last provision would require non-attainment areas to achieve a 15
percent reduction from 1990 baseline emissions within five years and, in each subsequent
year, either attain or reduce emissions by an additional three percent. This requirement
would involve certain additional controls that are identifiable at this time, as well as
additonal controls that are yet unknown. These additional measures would involve both
stationary and mobile sources.
(c) Data source: Ozone Nonattainment: A Comparison of Bills, Prepared for the US EPA
Office of Air and Radiation by E.H. Pechan & Associates, Inc., January 1990.
(d) Derivation and timing of estimates: Tables 3 and 4 of the data source (pp. 6 & 7) provide
annualized costs for each control measure for the years 1995 and 2000. For each control
measure, we subtracted the year 1995 cost estimate from the year 2000 cost estimate, and
divided the result by five to figure the average annual increase in costs throughout the
period 1995-2000. These average annual increases in costs were then used to figure costs
for each year throughout the period 1993-2000 for each control measure (For the "progress
requirements" measure, the average annual increase in cost was used to figure costs for the
years 1995-2000 only; year 1993 and 1994 costs were assumed to be at the level of 1995
costs). The year 1993 was assumed to be the first year in which costs would be incurred.
Since the annualized costs could not be dissaggregated into fixed and variable cost
components, the annualized cost estimates were reported under the O&M cost category.
These annualized costs were calculated by the data source using a 10 percent rate of capital
amortization.
November 1990
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Appendix A—Costs of New Regulations
Stratospheric Ozone Protection Plan
(a) Status: Final rule (53 FR 30566; August 12, 1988).
(b) Regulatory option: See 53 FR 30566.
(c) Data sources:
(1) Regulatory Impact Analysis: Protection of Stratospheric Ozone Depletion, Volumes I
and II, US EPA Office of Air and Radiation, December 1987.
(2) Profile of the regulation prepared by Stephen Seidel (Office of Policy Planning and
Evaluation, Global Change Division) for the EPA Sector Study.
(d) Derivation and timing of estimates: Data Source 2 provides undiscounted social cost
estimates derived using welfare analysis for each of the years 1989-1995, and year 2000 (
these costs are associated with the moderate stretch-out scenario). Page 9-13 of the RIA
(data source 1) provides present value cost estimates (calculated with a 2 percent discount
rate) for the period 1989- 2000. The following assumptions were used together with the
above data to derive undiscounted cost estimates over years 1996-1999, for which annual
social costs data were missing. Data Source 2 indicates that the first big increase in social
costs occurs in year 1994 following the rule's 20 percent CFC reduction requirement in
1993. Data Source 2 also indicates that social costs increase annually by only 6 percent
over the period 1994-1996. We assumed that 1997 and 1998 social costs would also be 6
percent higher than the previous years' estimates, respectively. The rule requires a 50
percent CFCs reduction in year 1998, which implies that social costs will make a large jump
in year 1999. To derive undiscounted social costs for year 1999, we took the RIA estimate
of present value social costs for the period 1989-2000 (p. 9-13), and subtracted from it the
present value (at 2 percent) of our supplied and derived estimates for years 1989-1998, and
year 2000. The annual estimates are reported under the O&M costs category (no numbers
are reported under the capital cost category).
3.1.2. Mobil Sources
Fuel Volatility Rule
(a) Status: Final rule (54 FR 11868; March 22, 1989).
(b) Regulatory option: See 54 FR 11868.
(c) Data sources: See Appendix C.
November 1990
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A-6 Environmental Investments
(d) Derivation and timing of estimates: See Appendix C.
NOx and Particulates Standards for Light-Duty Trucks and Heavy-Duty Engines
(a) Status: Final rule (50 FR 10606: March 15, 1985).
(b) Regulatory option: See 50 FR 10606.
(c) Data sources: See Appendix C.
(d) Derivation and timing of estimates: See Appendix C.
Diesel Fuel Quality Standards
(a) Status: Final rule (54 FR 11868; March 22, 1989).
(b) Regulatory option: See 54 FR 11868.
(c) Data sources: See Appendix C.
(d) Derivation and timing of estimates: See Appendix C.
Toxic Substances Control (Mobile Sources)
(a) Status: These provisions are part of the Administration's strategy for controlling hazardous
air pollutants which are set out in Title III of H.R. 3030 and S. 1490 (101st Congress, 1st
Session).
(b) Regulatory option: See Appendix C.
(c) Data sources: See Appendix C.
(d) Derivation and timing of estimates: See Appendix C.
Ozone National Ambient Air Quality Standard: Full Attainment (Mobile Sources)
(a) Status: These provisions reflect the Adminsistration's strategy for ozone NAAQS attainment
set out in H.R. 3030 (101st Congress, 1st Session), which would amend the Clean Air Act.
(b) Regulatory option: See Appendix C.
(c) Data sources: See Appendix C.
November 1990
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Appendix A—Costs of New Regulations
A-7
(d) Derivation and timing of estimates: See Appendix C.
Air regulations not included in the data set.
Potential rules which were deemed too speculative at this time to include in the report or for
which adequate cost data were not available include various NAAQS revisions (e.g., fine
particulates). Several new and forthcoming rules involving New Source Performance Standards
(NSPS) were also excluded from the cost data set because adequate cost data was not available.
These include various NSPS for synthetic organic chemical manufacturing industries,
commercial steam generators, small boilers, and residential wood heaters. Forthcoming mobile
source rules for which adequate cost data could not be obtained include cold-start carbon
monoxide standards, and on-board diagnostic systems for emission controls.
3.2. Radiation Regulations
Radon Advisory
See Appendix G
4. WATER REGULATIONS
4.1. Water Quality
Treatment of Municipal Wastewater: Full Compliance
(a) Status: Established Program (40 CFR Part 35).
(b) Regulatory Option: The cost estimates provided for this program include the net costs (i.e.
costs over and above expected future expenditures for wastewater treatment during the
period 1990-2000) of bringing existing facilities into compliance with their permits as well
as the costs of design needs for the year 2000. The costs reflect the following components
of needs, some of which are Federal grant-eligible and some of which are not: 1) secondary
treatment, 2) advanced treatment, 3) infiltration, including inflow and replacement, 4) new
collector sewers and interceptors, and 5) combined sewer overflow.
(c) Data sources:
(1) 1988 Needs Survey Report to Congress: Assessment of Needed Publicly Owned
Wastewater Treatment Facilities in the US, US EPA Office of Municipal Pollution
Control, EPA 430/09-89-001, February 1989.
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(2) State Revolving Fund Report to Congress: Financial Status and Operations of Water
Pollution Control Revolving Funds, Draft Report, US EPA Office of Municipal Water
Pollution Control, February 1990.
(d) Derivation and timing of estimates: Data Source 1 reports one capital cost estimate (p. 8)
representing the costs required to meet the total current needs of existing facilities with
documented water quality or public health problems. This estimate was divided into 11
equal increments, and one increment attributed to each of the years 1990-2000. Data
Source 1 reports another capital cost estimate (p. 8) representing the total capital needs for
population growth over the period 1988-2008. This estimate was divided into 21 equal
increments and one increment attributed to each year within this period. The two sets of
capital cost estimates for each of the years 1990-2000 were then summed to calculate total
"full compliance" capital needs in the amount of $6561 million for each year over this
period. One final step was then used to derive net full compliance capital needs (i.e. capital
needs over and above expected capital expenditures for municipal wastewater treatment)
for the period 1990-2000. To derive net capital needs, combined projections for future
wastewater treatment expenditures by EPA, state and local governments were subtracted
from the total full compliance capital costs for each year within the period 1990-2000. This
added step was required because the cost projections for future wastewater expenditures,
which are based on recent trends in expenditures reported by national surveys, should
incorporate a portion of the "full compliance" capital needs. This added step was thus
required to isolate the costs for that portion of full compliance capital needs that are not
expected to be met during the period 1990-2000. Costs estimates for full compliance O&M
costs are based on information from Data Source 2 indicating that annual O&M costs are
about one-tenth of capital costs for the average facility. Full compliance O&M costs were
calculated as one-tenth of the annual net full compliance capital costs derived using the pro-
cedure discussed above.
Pretreatment Requirements
(a) Status: Final (40 CFR Part 403).
(b) Regulatory option: See 40 CFR Part 403.
(c) Data sources:
(1) Sector Study municipal cost data base developed by Brett Snyder (Office of Policy
Analysis) with assistance from Denise Scott (Office of Water Enforcement and Permits,
Permits Division).
(2) "Pretreatment Audit Summary System" (PASS).
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Appendix A—Costs of New Regulations
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(d) Derivation and timing of estimates: The cost estimates are based on data contained in
"PASS" (Data Source 2) which shows annual budget and FTE expenses for pretreatment
programs in those cities that have implemented such programs. These costs were treated
as annual recurring costs. Data Source 1 derived total pretreatment costs for all cities by
extrapolating the cost data to cities within specific city size categories that have not yet
implemented the program. We aggregated the costs provided by Data Source 1 accross all
city size categories to calculate national costs of the rule. We assumed that all cities have
implemented or will implement pretreatment programs from 1988 and 1991; one-fourth of
total annual costs were placed in year 1988, one-half in year 1989, three-fourths in 1990
and total annual costs in each of the years 1991-2000.
Sewage Sludge Use and Disposal—Technical Requirements
(a) Status: Proposed rule (54 FR 5646; February 6, 1989). Expected finalization date: October
1991.
(b) Regulatory option: This rule will establish technical standards setting allowable
concentrations of pollutants in sewage sludge for each allowable sludge use and disposal
method. The cost estimates are based on regulatory alternative 3, which would regulate
critical sites based on Maximum Exposed Individuals.
(c) Data sources:
(1) Sector Study municipal cost data base developed by Brett Snyder (Office of Policy
Analysis).
(2) Draft Regulatory Impact Analysis of the Proposed Regulations for Sewage Sludge Use
and Disposal, Prepared for the US EPA by Eastern Research Group, Inc, July 1987.
(3) Memorandum from Debra Nicoll (Office of Municipal Pollution Control, Analysis and
Evaluation Division) to Brett Snyder listing the revised RIA capital and O&M cost data
for the technical regulatory option 3, dated January 13, 1988.
(d) Derivation and timing of estimates: The cost estimates were derived from data contained
in Data Source 3, which provides capital and O&M costs for five different disposal methods
associated with regulatory option 3, as well as the number of plants expected to use each
disposal method. This data was used to develop regulatory costs for different city size
categories, which are reported by Data Source 1. We aggregated the costs across city size
categories to calculate total national capital and O&M costs. We assumed the rule would
become effective in 1992, and all capital costs would be incurred in that year. O&M costs
were assumed to begin in the following year.
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Stormwater Management NPDES Application Requirements
(a) Status: Proposed rule (53 FR 49416; December 7, 1988). Expected finalization date: 1990.
(b) Regulatory option: The rule would establish stormwater permit application requirements
for stormwater discharges from large- and medium-sized municipal stormwater systems.
(c) Data source: Sector Study municipal cost data base developed by Brett Snyder (Office of
Policy Analysis) based on data from Jim Gallop (Office of Water Enforcement and Permits,
Permits Division).
(d) Derivation and timing of estimates: The costs reflect one-time costs to municipalities with
populations over 100 persons for developing and implementing stormwater management
plans, as well as annual recurring monitoring/enforcement costs. The cost estimates
provided by the data source are on a per person basis which were used to derive per city and
total costs for large size cities (populations greater than 250 thousand) and medium size
cities (populations between 100 and 250 thousand). Following the effective dates for the
rule, we assumed that capital costs for large cities would be incurred in equal increments
in years 1990 and 1991, with annual costs phased-in with each increment of capital. We
assumed that medium size cities would incur capital costs in 1992, with annual costs also
beginning in that year.
Effluent Limitation Guidelines: Organic Chemicals and Plastics and Synthetic Fibers
Industry
(a) Status: Final Rule (52 FR 42522; November 5, 1987).
(b) Regulatory option: See 52 FR 42522.
(c) Data source: Economic Impact Analysis of Effluent Limitation and Standards for the
Organic Chemicals, Plastics and Synthetic Fibers Industry, Prepared for the US EPA
Office of Water Regulations and Standards by Abt Associates, Inc., September 1987.
(d) Derivation and timing of estimates: The data source (pp. 1-3) provides capital and O&M
costs. We assumed the capital costs would be incurred in equal increments in years 1988,
1989, and 1990. O&M costs were assumed to phase-in with each increment of capital
expenditure.
Effluent Limitation Guidelines: Offshore Oil and Gas Industry
(a) Status: Proposed Rule (50 FR 34592; August 26, 1985). Expected Finalization Date: July
1991.
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A-11
(b) Regulatory option: This rule would establish BAT, BCT, and NSPS standards for drilling
fluids and drill cutting waste streams from offshore oil and gas extraction facilities. The
costs reflect Regulatory Approach A.
(c) Data source: Economic Impact Analysis of Effluent Limitation Guidelines and Standards
for the Notice of Data Availability for Drilling Fluids and Drill Cuttings for the Offshore
Oil and Gas Industry, Prepared for the US EPA Office of Water Regulations and Standards
by Eastern Research Group, Inc., October 1988.
(d) Derivation and timing of estimates: The data source (p. 7) reports total annual costs for
regulatory approach A. (No capital costs were reported for the rule.) We asumed that the
rule would be promulgated in 1991 and that annual O&M costs would begin in that year.
4.2. Drinking Water
Volatile Organics
(a) Status: Final rule (52 FR 25690; July 8, 1987).
(b) Regulatory option: See 52 FR 25690.
(c) Data sources: See Appendix F.
(d) Derivation and timing of estimates: See Appendix F.
Fluorides
(a) Status: Final rule (52 FR 11396; April 2, 1986).
(b) Regulatory option: See 52 FR 11396.
(c) Data sources: See Appendix F.
(d) Derivation and timing of estimates: See Appendix F.
Total Coliforms
(a) Status: Final rule (54 FR 27544; June 29, 1989).
(b) Regulatory option: See 54 FR 27544.
(c) Data sources: See Appendix F.
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(d) Derivation and timing of estimates: See Appendix F.
Surface Water Treatment
(a) Status: Final Rule (54 FR 27486; June 29, 1989).
(b) Regulatory option: See 54 FR 27486.
(c) Data sources: See Appendix F.
(d) Derivation and timing of estimates: See Appendix F.
Phase II Inorganics and Synthetic Organics
(a) Status: Proposed rule (54 FR 22062; May 22. 1989). Expected finalization date: December
1990.
(b) Regulatory option: This proposes National Primary Drinking Water Regulations for 30
synthetic organic chemicals (SOCs) and eight inorganic chemicals (IOCs). The regulations
set maximum contaminant levels (MCLs) or treatment techniques for the SOCs and IOCs,
as well as maximum contaminant level goals (MCLGs).
(c) Data sources: See Appendix F.
(d) Derivation and timing of estimates: See Appendix F.
Lead, Copper, and Corrosion Control
(a) Status: Proposed rule (53 FR 31516; August 16, 1988). Expected finalization date:
December 1990.
(b) Regulatory option: The proposed regulation sets new MCLs and MCLGs for naturally
occurring lead and copper in drinking water. The proposed rule also would require
drinking water systems to install certain corrosion control treatments in all systems that
exceed no-action levels for pH, alkalinity, or average lead content.
(c) Data sources: See Appendix F.
(d) Derivation and timing of estimates: See Appendix F.
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Appendix A—Costs of New Regulations A-13
Mandatory Disinfection
(a) Status: Expected proposal date: September 1990. Expected finalization date: September
1991.
(b) Regulatory option: This rule would establish MCLs and monitoring and public reporting
requirements for disinfectants in drinking water.
(c) Data sources: See Appendix F.
(d) Derivation and timing of estimates: See Appendix F.
Radionuclides
(a) Status: Expected proposal date: February 1991. Expected finalization date: August 1992.
(b) Regulatory option: This rule would establish MCLs and monitoring and public reporting
requirements for certain radionuclides, including radium, uranium, total alpha, and beta
particle and photon emitters.
(c) Data sources: See Appendix F.
(d) Derivation and timing of estimates: See Appendix F.
Phase IVInorganics and Synthetic Organics
(a) Status: Under development. Expected proposal date: 1991.
(b) Regulatory option: This rule will set drinking water MCLs and MCLGs for a set of IOCs
and SOCs not covered in the Phase II contaminants rulemaking.
(c) Data sources: See Appendix F.
(d) Derivation and timing of estimates: See Appendix F.
5. LAND REGULATIONS
5.1. Solid Waste
Municipal Landfill Subtitle D Criteria (Revision)
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(a) Status: Proposed rule (53 FR 33314; August 30, 1988). Expected finalization date: Spring
1990.
(b) Regulatory option: This rule would establish revisions to RCRA Subtitle D criteria for
municipal solid waste landfills. The proposal establishes general facility standards,
groundwater monitoring requirements, post-closure standards, and performance and
operating requirements.
(c) Data source: Draft Regulatory Impact Analysis of Proposed Revisions to Subtitle D
Criteria for Municipal Solid Waste Landfills, Prepared for the US EPA Office of Solid
Waste by Temple, Barker & Sloan, Inc., August 15, 1988.
(d) Derivation and timing of estimates: The data source (p. V-15) reports total annualized costs
of the rule as S691-S880 million (calculated at a 3 percent amortization rate over 20 years).
We took the midpoint of this range, and assumed that 75 percent of it (or $590 million)
represents annual capital costs based on the high percentage of landfills that require liners,
covers, leachate collection systems, and recovery wells. The remaining $196 thus
represents annual O&M costs. The annual capital estimate was then divided by the
annualization factor to figure total capital costs of $8777 million. We assumed the rule
would become effective in 1991, and attributed a tenth of total capital costs to each of the
years 1991-2000. Annual O&M costs were assumed to begin in 1991 and remain at this
level through year 2000.
Municipal Waste Combustors Air Standards
(a) Status: Advanced notice of proposal (52 FR 25399; July 7, 1987). Expected proposal date:
December 1990.
(b) Regulatory option: This rule would regulate municipal waste combustor air emissions
under CAA Sections 111(b) and (d).
(c) Data sources:
(1) Sector Study municipal cost data base developed by Brett Snyder (Office of Policy
Analysis) from data supplied by Mike Johnston.
(2) Municipal Waste Combustors Study: Report to Congress, US EPA,
EPA/530-500-87-021a, June 1987.
(d) Derivation and timing of estimates: Unit capital and O&M costs for three different types
of existing and plannned facilities were calculated by Data Source 1 using data derived
from Data Source 2 and discussion with Mike Johnston. Data Source 1 calculated total
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Appendix A—Costs of New Regulations
A-15
costs for different city size categories by multiplying these unit cost estimates by data on
the number of each different type of planned and existing facitilies provided by Data Source
2 (Appendix B tables). We aggregated costs for each city size category to derive national
costs for both planned and existing facilities. We assumed that the regulation will not be
promulgated until 1991 and by that time all planned facilities will have come on-line. We
assumed that capital costs would be incurred in equal increments in years 1991 and 1992,
and O&M costs associated with each capital increment would begin in the following years.
Municipal Waste Combustors Ash Management
(a) Status: Expected proposal date: September 1990. Expected finalization date: November
1991.
(b) Regulatory option: Land disposal management standards for controlling releases from
municipal combustion ash corresponding to the most stringent landfill diposal option.
(c) Data sources:
(1) Sector Study municipal cost data base developed by Brett Snyder (Office of Policy
Analysis) with assistance from Sharon Stahl (Pollution Prevention Office).
(2) Draft Regulatory Impact Analysis of Proposed Revisions to Subtitle D Criteria for
Municipal Solid Waste Landfills, US EPA Office of Solid Waste, December 11, 1987.
(d) Derivation and timing of estimates: The RIA provides estimates of the tonnage of waste
produced by municipal incinerators. Data Source 1 derived costs by multiplying this
estimate of waste produced by an efficiency factor of 20 percent to represent the portion of
incinerated waste that ends up as ash. This estimate of ash produced was then multiplied
by capital and O&M cost/ton estimates from the RIA associated with the most stringent
landfill disposal option. We assumed that capital costs would be incurred in equal
increments in years 1991 and 1992, and O&M costs would begin in year 1993.
Management of Used Oil
(a) Status: Proposed rule (50 FR 49212; November 29, 1985). Expected finalization date:
1990.
(b) Regulatory option: The option imposes modified hazardous waste regulations on all
facilities in the used oil mangement system, including generators, intermediate facilities,
and end users of used oil. Facilities generating less than 1,000 kilograms of used oil per
month would be exempt from this regulatory option.
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(c) Data source: Regulatory Impact Analysis of Proposed Standards for the Management of
Used Oil, Temple, Barker & Sloan, Inc., November 1985.
(d) Derivation and timing of estimates: The data source (pp. 1-5) reports an annualized cost for
the regulatory option of $167 million per year in 1984 dollars. The data source (Table V-18
on p. V-21) also indicates that approximately 43 percent of annualized costs are annual
O&M costs, and 57 percent are annual capital costs. The next step was to back out the
effect of annualization on the capital costs, producing a present value estimate for capital
costs of $2008 million. We assumed that the rule would become effective in 1992, and
one-fourth of total capital costs would be incurred over each of the first four years (1992-
1995). Annual O&M costs were assumed to begin in 1992 and remain constant for a 20
year period.
5.2. Hazardous Waste
Land Disposal Restrictions—California List Wastes
(a) Status: Final rule (52 FR 25760; July 8, 1987).
(b) Regulatory option: See 52 FR 25760.
(c) Data source: Regulatory Impact Analysis of Restrictions on the Land Disposal of California
List Wastes, Prepared for the US EPA Office of Solid Waste by ICF, Inc., July 1987.
(d) Derivation and timing of estimates: The data source reports total annualized costs
(calculated using a 5.5 percent amortization rate over a 20 year period) of the rule as $94
million in 1986 dollars, but did not include enough information to dissaggregate costs into
fixed and variable cost components. Therefore, it was assumed that the division of
annualized costs between capital and O&M cost components would be similar to that of the
California list wastes underground injection control rule (The underground injection rules
are discussed later in this appendix.) The ratio of annual O&M costs to total annualized
costs for the California list underground injection rule is 90.5 percent. Multiplying this
ratio by the $94 million annualized cost produces an annual O&M cost estimate of $85
million and an annual capital cost estimate of $9 million. We then divided the annual
capital cost estimate by the annualization factor to figure a total capital cost of $108
million. One-half of the capital cost estimate was placed in the year the rule went into
effect (1987), and the other half two years later. Annual O&M costs were assumed to begin
in year 1987.
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Appendix A—Costs of New Regulations
Land Disposal Restrictions—Solvent and Dioxin Wastes
A-17
(a) Status: Final rule (51 FR 4057; November 7, 1986).
(b) Regulatory option: See 51 FR 4057.
(c) Data sources:
(1) Regulatory Analysis of Restrictions on Land Disposal of Certain Solvent Waste,
Prepared for the US EPA Office of Solid Waste by Industrial Economics, Inc.,
November 1987.
(2) Regulatory Analysis of Restrictions on Land Disposal ofCertain Dioxin-Containing
Wastes, Prepared forthe US EPA Office of Solid Waste by Industrial Economics, Inc.,
November 1987.
(d) Derivation and timing of estimates: The estimation procedure corresponds to the
methodolgy discussed above for California list wastes.
Land Disposal Restrictions—First Third Wastes
(a) Status: Final rule (53 FR 17578; August 17, 1988).
(b) Regulatory option: See 53 FR 17578.
(c) Data source: Regulatory Impact Analysis of the Land Disposal Restrictions on First Third
Wastes, Prepared forthe US EPA Office of Solid Waste, by ICF, Inc., August 1988.
(d) Derivation and timing of estimates: The estimation procedure corresponds to the
methodology discussed above for the California List waste rule.
Land Disposal Restrictions—Second Third Wastes
(a) Status: Final rule (54 FR 26594; June 23, 1989).
(b) Regulatory option: See 54 FR 26594.
(c) Data source: Results of the Preliminary Analysis of the Proposed Second Third LDR Rule,
Memorandum from Ralph Braccio, Dan Pyne, Jean Tilly (ICF) and Barbara Hendricks
(DPRA) to Bill Vocke (EPA), December 18, 1988.
(d) Derivation and timing of estimates: The derivation procedure corresponds to the
methodology discussed above forthe California list waste rule.
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Land Disposal Restrictions—Third Third Wastes
(a) Status: Proposed rule (54 FR 48372; November 22, 1989). Expected finalization date: May
1990.
(b) Regulatory option: The rule will establish land disposal restrictions and treatment standards
for the Third Third of scheduled wastes.
(c) Data source: Regulatory Impact Analysis for Third Third Scheduled Wastes Proposed Rule,
Prepared for the US EPA Office of Solid Waste by ICF Inc., November 5, 1990.
(d) Derivation and timing of estimates: The derivation procedure corresponds to the
methodology discused above for the California list waste rule.
Underground Injection Control: Land Disposal Restrictions (LDR) for Solvents and Dioxins,
California List, First Third, Second Third, and Third Thirds Wastes
(a) Status: Solvents and Dioxins—Final rule (53 FR 28118; July 26, 1988). Cal. List and First
Thirds—Final rule (53 FR 30908; August 16, 1988). Second Thirds—Final Rule (54 FR
26594: June 23, 1989). Third Thirds—Proposed Rule (54 FR 48372; November 22, 1989).
(b) Regulatory option: See 53 FR 28118, 53 FR 30908, 54 FR 26594 and 54 FR 48372.
(c) Data sources:
(1) Regulatory Impact Analysis of Underground Injection Control Program: Proposed
Hazardous Waste Disposal Injection Restricitions, Prepared for the US EPA Office of
Drinking Water by Temple, Barker & Sloan, Inc., July 24, 1987.
(2) Regulatory Impact Analysis of Proposed Hazardous Waste Disposal Restrictions for
Class I Injection of California List and First Third Wastes, Prepared for the US EPA
Office of Drinking Water by the Cadmus Group, Inc., December 4, 1987.
(3) Draft Regulatory Impact Analysis of The Proposed Hazardous Waste Disposal
Restrictions For Class I Injection of Third Third Wastes, Prepared for the US EPA
Office of Drinking Water by the Cadmus Group, Inc., August 18, 1989.
(4) Second and Third Third Cost Estimates, Memorandum to Bruce Kobelski (EPA) from
Beverly Brown Cadorette (Cadmus), December 12, 1988.
(d) Derivation and timing of estimates: The methodology and data discussed below were used
to derive costs for California List wastes underground injection restrictions. It corresponds
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Appendix A—Costs of New Regulations
A-19
to the methodology used to calculate costs for each of the other underground injection
provisions, which are not discussed.
Data Source 2 reports annual O&M costs as $5 million and capital and petition cost of $3
million for California list wastes. Capital costs were combined with petition costs to calculate
total fixed costs. We assumed that half of the wastes affected would be granted a two year
variance, and capital costs associated with these provisions would thus not be incurred until two
years after the rule goes into effect. Total capital costs were then divided equally and one half
was assumed to be incurred in the year the provision went final (1988) and the other half
incurred two years later (1990).
Unlike the other underground injection provisions, the RIA for the Second Third wastes did not
break costs into capital and O&M cost components, but rather only reported an annualized cost.
Thus, the following methodolgy was used to derive capital and O&M costs for this rule. First,
the average ratio between annual O&M costs and total annualized costs for the four other UIC
rules was calculated. Annual O&M costs were found to be roughly 80 percent of the total
annualized costs for these provisions. We then calculated O&M costs by taking 80 percent of
the total annualized cost for the Second Third wastes as reported by Data Source 4. We then
subtracted the resulting O&M cost estimate from the reported annualized cost to figure annual
capital cost. The effect of amortization was eliminated to calculate total capital costs. As with
the other underground injection provisions, capital cost was divided by two, and one-half placed
in the year the rule was finalized and one-half two years later.
Toxicity Characteristics Rule
(a) Status: Proposed Rule: (51 FR 21648; June 13, 1986). Supplemental proposal: (53 FR
18024; May 19, 1988). Expected finalization date: 1990.
(b) Regulatory option: This rule would amend the hazardous waste identification regulations
by introducing a new extraction procedure based on chronic toxicity reference levels
combined with a compound-specific dilution/attenuation factor to calculate the regulatory
level concentrations for individual toxicants.
(c) Data source: Toxicity Characteristic Regulatory Impact Analysis, Final Report, prepared
for the US EPA by ICF Inc., March 1990.
(d) Derivation and timing of estimates: The data source reports annualized costs (calculated at
3 percent over 20 years) for compliance as $250 million, and annualized cost for surface
impoundment closure as $150 million in 1988 dollars (or $236 and $141 million,
respectively, in 1986 dollars). Using the professional judgement of Mark Ralston (EPA) and
Chris Lough (DPRA), we assumed that 75 percent of the annual compliance cost estimate
($177 million) represents annual O&M costs, and the remainder ($59 million) represents
annual capital costs. Based on the OPPE definition of capital, closure costs were assumed
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to be annual O&M costs. Also, compliance capital costs were assumed to occur over a 20
year period and closure costs over the first five years after the rule goes into effect (assumed
to be 1991). We then calculated the present value of compliance capital costs as $875
million. One-twentieth of this total capital cost estimate was used to represent compliance
capital costs in each of the years 1991-2000. Annual compliance O&M costs of $177
million were assumed to begin in 1991 and remain at this level through year 2000. The
present value of closure costs were computed as $2098 million. One-fifth of this estimate
was attributed to O&M costs and placed in each of the years 1991-1995.
Location Standards Rule
(a) Status: Expected proposal date: Spring 1990.
(b) Regulatory option: Will set standards for the proper citing of hazardous waste treatment,
strorage and disposal facilties, as well requirements for storage, transport, and removal of
wastes, and facility closure.
(c) Data source: Summary Regulatory Impact Analysis/Background Information Document for
the Development of Subtitle C Location Standards Under Section 3004(o)(7) ofRCRA,
Prepared for the US EPA by ICF, Inc., January 26, 1990.
(d) Derivation and timing of estimates: We characterized location standards cost components
into capital and O&M costs as follows: Capital costs components were assumed to include
site characterization; engineering demonstration; storage, transport and removal of wastes;
closure of container storage units, and faciltiy closure. O&M costs include offsite disposal
of wastes and extended post-closure care. For closure costs, we determined the lower- and
upper-bound proportion of capital and O&M costs (based on the breakdown of closure cost
components). We then determined the timing of when facilities will get their operating
permits reviewed (location standards are imposed at the time of permit renewal) using a
study of the review cycle for facilities on the permit track and on the closure track. Land
based facilities are on a 5 year permit review cycle and non-land based facilities are on 10
year permit review cycle. We assumed that location standards would not go into effect until
1994, and that 80 percent of the costs are attributable to land based units and 20 percent to
non-land based units (based on the breakdown of the costs of closure with waste removal).
Based on the these assumptions, the timing of the imposition of location standards were
determined. Using data on unit costs from the data source, we then multiplied the capital
costs by the percentage of facilties assumed to comply with the location standards in each
year using the estimated schedule. We assumed that facilities performing closure with
waste removal took an average of 6 years to redispose wastes, and that for closure with
wastes in place, facilities performed 15 years of off-site disposal in the lower bound and 5
years in the upper-bound. Using these assumptions, we spread O&M costs for closure with
waste removal over six years, and O&M costs of closure with waste in place over 15 years
in the lower-bound, and 5 years in the upper-bound. We assumed that no extended
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Appendix A—Costs of New Regulations
A-21
post-closure care costs would be incurred prior to the year 2000 because all facilties
affected by the location standards are assumed to undertake 30 years of post-closure care
prior to starting extended post-closure care. Thus, these costs will be incurred well after
the year 2000. We then took the mid-point of the cost ranges computed for capital and
O&M costs under the lower- and upper-bound assumptions.
Corrective Action for Solid Waste Management Units (SWMU)
(a) Status: Expected proposal date: 1990.
(b) Regulatory option: The rule would set technical standards and procedures for conducting
corrective action for injury to groundwater, soil, air and surface waters caused by
significant releases from SWMUs at operating, closed, or closing RCRA facilities. For the
cost estimates presented in this report, a mid-pint between the costs for regulatory option
B and C were used. Under regulatory option B, corrective action would be triggered if
pollutant concentrations were detected above health-based standards. This option requires
the use of four remedies (excavation, excavation with recovery wells, capping, and recovery
wells), one of which is simulated for every facilty that triggeres corrective action, regardless
of the practicality or feasibility of the remedy. Regulatory option C differs from option B
in that owners and operators would have considerable flexibility in choosing corrective
action remedies.
(c) Data source: Draft Regulatory Impact Analysis for the Proposed Rulemaking on Corrective
Action for Solid Waste Management Units, Prepared for the US EPA Office of Solid Waste
by ICF, Inc., September 1988.
(d) Derivation and timing of estimates: Agency progress to date with corrective action indicates
the initiation of an estimated 10 facilities in each of the years 1988-1990, an estimated 25
facilities in 1991, and 50 facilities in 1992. We assumed that the number of facilities
initiating corrective action would increase by five percent per year from the year 1992 level.
This produced a schedule of facility initiation for the years 1988- 2000 encompassing a total
of 685 facilities. The data source (p. 7-7) gives the distribution of remedies selected under
both regulatory options B and C. We averaged remedy selections for both options to
produce the distribution chosen in a hypothical mid-case scenario. This procedure indicated
that 6.1 percent of facilities would utilize excavation, 51.3 percent would use capping, 24.7
percent would use recovery wells, 15.2 percent would use excavation and recovery wells,
and 2.9 percent would do nothing because clean-up is not feasible. Based on information
from the data source on typical costs for each remedy allocated among capital costs, first
year O&M costs, and ongoing O&M costs, we calculated mean costs for each cost
component by remedy for the hypotheical mid-case scenario. Based on the distribution of
remedies for the mid-case scenario, we created weighted average costs for each corrective
action initiated. This produced per- facility capital costs of $1.2 million (primarily caps and
well installation), year one O&M costs of $23.4 million (exclusively excavation), and
November 1990
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22
Environmental Investments
recurring O&M costs of $59 thousand (for ongoing operation of recovery wells). We then
added $400 thousand as year one O&M costs to reflect investigative expenses. We then
applied per-facility costs to the estimated schedule of facility corrective action initiations
to produce capital and O&M cost estimates for each year over the period 1988-2000.
Minimum Technology Rule
(a) Status: Final codification rule (50 FR 28702; July 15, 1985).
(b) Regulatory option: See 50 FR 28702.
(c) Data source: Hazardous Waste Management System; Final Codification Rule, 50 FR 28702,
July 15, 1985.
(d) Derivation and timing of estimates: For landfills, the preamble to the RIA section gave the
following costs in 1984 dollars: annualized costs of $10.2 million (calculated at 3 percent
over 20 years) and initial costs of $9.7 million. Costs were converted into 1986 dollars. We
then calculated present value costs by backing out the annualization procedure, and then
subtracted initial costs from the resulting estimate to isolate present value O&M costs. This
estimate was then reannualized to figure annual O&M costs of $10 million per year for
landfills. Capital costs were assumed to occur before 1986. For surface impoundments, the
preamble to the RIA section says that total annualized costs are $53.2 million in 1984
dollars (calculated at 3 percent over 20 years). This was converted into a present value
estimate in 1986 dollars ($845.7 million). The preamble also indicates that 46-79 percent
of the inital cost is for early closure of of unlined surface impoundments, and the remaining
for construction of new surface impoundments. Based on this and information indicating
that few new surface impoundments are being built, we attributed 75 percent of the present
value cost estimate to early closure and assumed these are O&M costs, and attributed 25
percent to new construction which were assumed to be capital costs. We then annualized
closure costs to calculate annual O&M costs of $43 million for surface impoundments. This
was added to the estimate of annual O&M costs for landfills and placed in each of the years
1986-2000. We assumed that one-fifth total capital costs for surface impoundments would
be incurred in each of the years 1986-1990.
Small Quantity Generators Rule
(a) Status: Final rule (51 FR 10146; March 24, 1986).
(b) Regulatory option: See 51 FR 10146.
(c) Data source:
November 1990
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Appendix A—Costs of New Regulations
A-23
(1) Hazardous Waste Management System: Final Codification Rule, 50 FR 28702, July 15,
1985.
(2) Report to Congress on Small Qunatity Generators of Hazardous Waste: Volume III, US
EPA, September 1986.
(d) Derivation and timing of estimates: Data Source 2 (Exhibits 6-1,6-2, and 6-3) reports initial
and annualized costs for each of three parts of the rule: Part 262, Part 265, and Subpart I.
We annualized the initial costs for each part (at 3 percent over 20 years) and then subtracted
the resulting estimates from their corresponding total annualized cost estimates to compute
annual O&M costs for each part of the rule. These were summed to figure total annual
O&M costs, which were placed in each of the years 1986-2000. Initial costs were assumed
to occur before 1986 and were thus not included.
Hazardous Waste Tanks
(a) Status: Final rule (51 FR 25422; July 14, 1986).
(b) Regulatory option: See 51 FR 25422.
(c) Data sources:
(1) Cost Analysis ofRCRA Regulations for Hazardous Waste Tank Facilities, Prepared for
the US EPA by ICF, Inc., June 1986.
(2) Cost and Economic Impact Analysis of Proposed RCRA Hazardous Waste
Accumulation Tank Regulations for 100-1,000 kg/mo. Generators, Prepared for the US
EPA by ICF, Inc., August 1986.
(d) Derivation and timing of estimates: Data Source 1 reports total annualized costs as $30
million (calculated using a 3 percent interest rate over 20 years). Using information from
the 1986 RIA for the Small Quantity Generators rule, we estimated that 27 percent of total
annualized cost, or $8 million, is annual capital cost, and the remaining $22 million is
annual O&M cost. We assumed the one-fifth of total capital costs would be incurred in each
of the years 1986-1990, and that constant annual O&M costs would be incurred in years
1986-2000.
5.3. Underground Storage Tanks
Underground Storage Tanks Containing Petroleum—Financial Responsibility Requirements
November 1990
-------
A-24
Environmental Investments
(a) Status: Final Rule (53 FR 43322; October 26, 1988).
(b) Regulatory option: See: 53 FR 43222.
(c) Data source: Regulatory Impact Analysis for Financial Responsibility Requirements for
Petroleum Underground Storage Tanks, US EPA Office of Underground Storage Tanks,
October 1988.
(d) Derivation and timing of estimates: See Appendix H.
Underground Storage Tanks Containing Petroleum or Hazardous Substances—Technical
Requirements
(a) Status: Final rule (53 FR 37082; September 23, 1988).
(b) Regulatory option: See: 53 FR 37082.
(c) Data source: See Appendix H.
(d) Derivation and timing of estimates: See Appendix H.
5.4. Superfund
Superfund Site Clean-ups
(a) Status: This is an ongoing program. Revisions to the National Contingency Plan (NCP),
which directs clean-up activities, were proposed on December 21, 1988 (53 FR 51394).
Expected finalization date: 1990.
(b) Regulatory option: The cost estimates for future years reflect the new emphasis on
treatment versus containment remedies set out in the proposed revisons to the NCP. The
cost estimates for past years reflect the actual mix of treatment versus containment remedies
used in those years.
(c) Data sources: See Appendix H.
(d) Derivation and timing of estimates: See Appendix H.
Land pollution rules not included in the data set.
Various new and forthcoming rules pursuant to Subtitle C of RCRA were excluded from the
cost data set because adequate cost data could not be obtained. These include rules for which
November 1990
-------
Appendix A—Costs of New Regulations
A-25
cost analyses may have been performed, but detailed documentation of these analyses were not
available. For the most part, however, these rules impose minor costs to the private sector. Such
rules include, for example, the hazardous waste burning rule and amendments to emission
standards for hazardous waste incinerators.
Other forthcoming Subtitle C rules for which cost data were not obtained include the UST
containing hazardous substances financial responsibility rule and the corrective action rule for
regulated hazardous waste management units, among others.
6. CHEMICAL REGULATIONS
6.1. Toxic Substances
Asbestos in Schools Rule
(a) Status: Final rule (52 FR 41826; October 30, 1987).
(b) Regulatory option: See 52 FR 41826.
(c) Data source: Sector Study municipal cost data base developed by Brett Snyder (Office of
Policy Analysis) with assistance from Brian Muehling (Office of Toxic Substances,
Economics and Technology Division).
(d) Derivation and timing of estimates: Cost tables prepared by Brian Muehling using Tables
14a,b, and c from the RIA were used by Data Source 1 to derive costs for different city size
categories. These costs include per school capital costs for develoment of a management
plan and asbestos removal and containment, and per school annual costs for inspection and
sampling, operation and maintenance, and re-inspection. We aggregated the costs for
different city size categories to calculate national capital and annual costs for the rule. We
assumed the sampling and inspection costs would be incurred in years 1988 and 1989, and
all capital costs would be incurred in equal increments over the years 1989-1992. O&M
costs are assumed to phase-in with each increment of capital.
Asbestos in Products Ban/Phasedown
(a) Status: Final rule (54 FR 29460; July 12, 1989).
(b) Regulatory option: See 54 FR 29460.
(c) Data source: Regulatory Impact Analysis of Controls on Asbestos and Asbestos Products:
Volume I Technical Report, Prepared for the US EPA Office of Toxic Substances by ICF,
Inc., October 11, 1988.
November 1990
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A-26
Environmental Investments
(d) Derivation and timing of estimates: The data source (p. IV- 13) reports present value (3
percent over fifteen years) social costs derived using welfare analysis for Alternative J, low
decline baseline scenario. (This regulatory option most closely resembles the final rule's
requirements.) We derived annual industry costs for each year over the fifteen year period
by eliminating the discounting factor and distributing the resulting cost estimates relating
to specific product categories according to the various effective dates for their phasedown
or ban.
7. MULTI-MEDIA REGULATIONS
Emergency Planning and Community Right to Know Program (EPCRA)
1. Emergency & Hazardous Chemical Inventory Forms and Community Right-to-Know
Reporting Requirements; 2. Extremely Hazardous Substance List and Threshold Reporting
Requirements; Emergency Planning and Release Quantification Requirements; 3. Toxic Chemi-
cal Release Reporting; and 4. Trade Secret Claims.
(a) Status: Final rules (52 FR 38344, October 15, 1987; 52 FR 13378, April 22, 1987; 53 FR
4500, February 16, 1988; and 53 FR 28772, July 29, 1988).
(b) Regulatory option: See above FR cites.
(c) Data source: The Unified Title III Economic Analysis: Subject Paper on Facilities - Vol.1,
Prepared for the US EPA Office of Toxic Substances by ICF, Inc., January 8, 1988.
(d) Derivation and timing of estimates: The costs for all EPCRA regulations were derived from
Tables G-l to G-8 in Appendix G of Data Source 1. The capital costs represent one-time
costs associated with regulation familiarity and recordkeeping setup; the annual costs are
for annual reporting requirements. Following information from Data Source 1 (pp. 2-10
- 2-13), capital costs for the various EPCRA requirements were placed in years 1988, 1989,
and 1990, and annual costs in years 1988 through year 2000.
November 1990
-------
Appendix A—Costs of New Regulations A-27
Table A-l: AIR POLLUTION CONTROL CAPITAL COSTS FOR NEW REGULATIONS*
(millions of 1986 dollars)
Rpt
Sec Program/Regulation IS
'86
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
3.1 Air Pol 1uti on
3.1.1 Stationary Sources
PM NAAQS
Lead NAAQS
Aci d Rai n (a)
Toxic Substances (a)
Stratospheric Ozone (b)
Total NeW Regs
477
477
477
477
477
477
106
106
106
106
106
106
Fu11 1mp1ementat i on
Ozone RAAQS: Attain (a)
TSDF
Mun i . Landfi 11s
Solvent Use
Mar i ne Vesse1s
New CTG
Progress Req.
Fu11 tmp1ementat i on
Total Stationary
477
477
477
106
106
106
3.1.2 Mobi 1e Sources
New Regu1 at i ons
Fue1 Vo1 at i 1 i ty
NOx and Part i cti 1 ates
Diesel Fuel
Toxic Substances (a)
Total New Regs
96
96
97
97
97
97
147
147
151
151
156
156
186
186
191
191
197
197
203
203
210
210
216
216
223
223
Fu11 1mp1ementat i on
Ozone RAAQS: Attain.
Fue1 Vo1 at i 1 i ty II
Evap./runn i na 1osses
Ta i Ip i pe/usefuI I i fe
Stage I I
Basfc l/M
Enhanced l/M
LDV NOx
A11 FueIs
FuI I i mpIementat i on
Total Mobi le
96
97
97
147
151
156
186
191
197
203
210
216
223
3.1.4 Total Air Pol 1uti on
477
573
574
203
253
257
156
186
191
197
203
210
216
223
3.2 Rad i at i on
Radon Advisory
Total Radiation
1
1
4
4
34
34
79
79
79
79
94
94
89
89
93
93
98
98
103
103
107
107
112
112
117
117
122
122
127
127
3.3 Total Air & Radiation
1
481
607
653
282
347
346
249
284
294
304
315
327
338
350
November 1990
-------
A-28
Environmental Investments
Footnotes to Table A-l
* Documentation for these estimates is provided in the regulation summaries in previous sections of this appendix.
(a) Only annualized cost data that include amortized capital costs are available. These costs are reported in Table A-l A.
(b) Only social cost data derived from welfare analysis are available. These costs are reported in Table A-l A.
November 1990
-------
Appendix A—Costs of New Regulations
Table A-1A: AIR POLLUTION CONTROL OPERATING COSTS FOR NEW REGULATIONS"
(millions of 1986 dollars)
A-29
Rpt
Sec
Program/ReguI at i on
Air PoI Iut i on
1988
1989
1990
1991
1992
1993
1
994
1995
1996
1997
1998
1999
2000
1 7
35
52
52
52
52
52
52
52
52
52
52
52
10
20
29
29
29
29
29
29
29
29
327
654
654
654
654
1 ,308
124
247
557
743
929
1 ,239
1 ,548
1 ,858
5
5
63
66
70
74
79
448
641
1 7
35
52
62
77
210
391
1 ,031
1 ,548
1 , 738
2,053
2,731
3,888
1 ,624
1 ,
624
1 ,643
1 ,662
1 ,681
1 , 701
1 , 720
1 , 739
62
62
63
63
64
64
65
65
378
382
386
390
394
398
402
406
39
40
41
42
43
43
44
45
374
380
386
392
398
403
409
415
565
565
565
941
1 ,317
1 ,692
2,068
2,444
3,042
3,
053
3,084
3,490
3,897
4,301
4,708
5,114
1 7
35
52
62
77
3,252
3,
444
4,115
5,038
5,635
6,354
7,439
9,002
3.1
3.1.1 Stationary Sources
PM NAAQS
Lead NAAQS
Aci d Rai n (a)
Toxic Substances (a)
Stratospheric Ozone (b)
Total Ne(T ~
(a)
FuI I ImpIementat i on
Ozone RAAQS: Attain
TSDF
Mun i . Landfi I Is
Solvent Use
Mar i ne VesseIs
New CTG
Progress Req.
FuI I tmpIementat i on
Total Stationary
3.1.2 Mobi Ie Sources
New ReguI at i ons
FueI VoI at i I i ty
NOx and Particulates
Diesel Fuel
Toxic Substances (a)
Total New Regs
FuI I ImpIementat i on
Ozone NAAQS: Attain.
FueI VoI at i I i ty II
Evap./runn i na 1osses
Ta i Ip i pe/usefuI I i fe
Stage I I
Basfc l/M
Enhanced l/M
LDV NOx
A11 FueIs
FuI I i mpIementat i on
3.2
134
134
134
134
134
241
375
259
225
265
1 73
272
117
279
56
287
31
700 1 ,
1,035 1,71
295
6
2,100
2,401
305
(22)
314
2,
3.3
Total Mobi le
134
134
375
484
Tota1 Air Po11ut i on
1 7
169
186
437
561
Rad i at i on
Radon Advisory
Total Radiation
3
3
coco
14
14
20
20
25
25
Total Air & Radiation
20
1 77
200
457
586
2,
325
(Z6)
3,065 3,'
222
228
232
236
240
243
247
251
57
58
58
59
59
60
60
61
436
440
444
448
452
456
460
464
108
112
116
120
124
127
131
135
65
66
67
68
69
70
71
72
69
70
71
72
73
75
76
77
369
371
372
374
375
377
378
380
145
145
145
145
145
.326
1 ,345
1 ,505
1 ,522
1,537 1
,553
1 ,568
1 ,440
. 764
1 , 734
2,540
3,240
3,938 4
,636
4,633
4,489
.016
5,178
6,655
8,278
9,573 10
,990
12,072
13,491
31
36
42
48
53
59
65
71
31
36
42
48
53
59
65
71
.047
5,214
6,697
8,326
9,626 11
,049
12,137
13,562
November 1990
-------
A-30 Environmental Investments
Footnotes to Table A-l A
* Documentation for these estimates is provided in the regulation summaries in previous sections of this appendix.
(a) Represent annualized cost data that include amortized capital costs and annual operating and maintenance costs.
(b) Represent social cost data derived from welfare analysis.
November 1990
-------
Appendix A—Costs of New Regulations
Table A-2: WATER POLLUTION CONTROL CAPITAL COSTS FOR NEW REGULATIONS"
A-31
(millions of 1986 dollars)
Rpt
Sec Program/Regulation
1991 1992 1993 1
1995 1
1 997 1
1999 2000
1 Water Qua I i ty
By Regulation
Municipal Pretreatment
Municipal Sewage Sludge
Municipal Stormwater
ELG: Chem. & PIasti cs
ELG: Offshore Oi I & Gas
Total by Regulation
By Sector
local Government
Pr i vate
Total By Sector
FuI I ImpIementat i on
(Municipal Wastewater)
2 Dri nki ng Water (a)
VOCS
FI uor i de
Surface Water Treatment
Co I i form
Phase I I: IOCS & SOCS
Lead, Copper & Corrosion
Rad i onucI i des
D i s i nfect i on
Phase IV: IOCS & SOCS
Total Drinking Water
Dr i nk i ng Water
By Sector
local Government
Pr i vate
Total Bv Sector
314
314
314
314
36
29
7
36
314
314
314
314
73
59
13
73
19
314
333
19
314
333
65
15
561 6,561 6
95
21
116
116
116
561
6,561 6,561 6,561 6,561 6,561 6,561 6,561 6,561
379
310
69
379
1 ,1 75 1 ,381 1 ,
1,787 1,358
707 960
158 215
865 1,1 75
1 ,128
253
1 ,381
1 ,
1 ,
309
1 ,460
327
1 , 787
1 ,109
249
1 ,358
639
522
117
639
225
184
41
225
225
184
41
225
Footnotes to Table A-2
* Documentation for these estimates is provided in the regulation summaries in previous sections of this appendix.
(a) Cost estimates for individual drinking water regulations are not available because the same control of techniques are often utilized to meet different drinking water chemical standards
(i.e., co-control for several chemicals inhibits accurate isolation of costs for individual rules).
November 1990
-------
A-32 Environmental Investments
Table A-2A: WATER POLLUTION CONTROL OPERATING COSTS FOR NEW REGULATIONS'
(millions of 1986 dollars)
Rpt
Sec
Program/Regu1 at i on
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
4.1
Water Qua 1 i ty
By Regulation
Municipal Pretreatment
2
5
7
10
10
10
10
10
10
10
10
10
10
Municipal Sewage Sludge
33
33
33
33
33
33
33
33
Municipal Stormwater
10
20
30
30
30
30
30
30
30
30
30
ELG: Chem . & PIasti cs
137
274
412
412
412
412
412
412
412
412
412
412
ELG: Offshore Oi 1 & Gas
77
77
77
77
77
77
77
77
77
77
Total by Regulation
2
142
291
519
529
562
562
562
562
562
562
562
562
By Sector
Local Government
2
5
1 7
30
40
73
73
73
73
73
73
73
73
Pr i vate
137
274
489
489
489
489
489
489
489
489
489
489
Total By Sector
2
142
291
519
529
562
562
562
562
562
562
562
562
FuI I ImpIementat i on
(Municipal Wastewater)
2 Dri nki ng Water (a)
VOCS
FI uor i de
Surface Water Treatment
Co I i form
Phase I I: IOCS & SOCS
Lead, Copper & Corrosion
Rad i onucI i des
D i s i nfect i on
Phase IV: IOCS & SOCS
Total Drinking Water
Dr i nk i ng Water
By Sector
local Government
Pr i vate
Total Bv Sector
1 79
319
519
691
953
1,143 1,259 1,259
73
146
146
260
424
474
565
71 7
779
808
934
1 ,029
1 ,029
16
33
33
58
95
106
126
161
1 74
181
209
230
230
89
1 78
1 79
319
519
580
691
878
953
990
' 1,143
1 ,259
1 ,259
Footnotes to Table A-2A
* Documentation for these estimates is provided in the regulation summaries in previous sections of this appendix.
(a) Cost estimates for individual drinking water regulations are not available because the same control of techniques are often utilized to meet different drinking water chemical standards
(i.e., co-control for several chemicals inhibits accurate isolation of costs for individual rules).
November 1990
-------
Appendix A—Costs of New Regulations
Table A-3: LAND POLLUTION CONTROL CAPITAL COSTS FOR NEW REGULATIONS'"
(millions of 1986 dollars)
A-33
Rpt
Sec Program/Regulation
1986
1987 1988
1989
1990
1991
1992
1993 1
994
1995
1996
1997
1998
1999
2000
5.1 So 1 i d Waste
By Regulation
lOlun . Landf i 1 1
877
877
877
877
877
877
877
877
877
877
Mun. Comb. Ash & Air Stds
1 ,228
1 ,228
Used Oi 1
502
502
502
502
Total by Regulation
2,105
2,607
1 ,379 1,
379
1 ,379
877
877
877
877
877
By Sector
tocal Government
2,105
2,105
877
877
877
877
877
877
877
877
Rr i vate
502
502
502
502
Total By Sector
2,105
2,607
1 ,379 1,
379
1 ,379
877
877
877
877
877
5.2 Hazardous Waste
Solvents & Dioxins LDR
261
261
Cal ifornia List LDR
54
54
Fi rst Thi rds LDR
940
940
940
Second Thirds LDR
29
29
29
Thi rd Thi rds LDR
244
244
244
Underground Injection LDR
59
69
88
29
19
Toxicfty Characteristics
59
59
59
59
59
59
59
59
59
59
Location Standards
280
84
307
755
55
55
55
Correct i ve Act i on
12
12
12
30
60
66
72
78
84
90
96
102
108
Min. Technology
52
52 42
42
42
Smal1 Qty Gen^fators
Hazardous Waste Tanks
24
24 24
24
24
Total Hazardous Waste
337
130 1,338
1 ,170
1 ,379
391
382
125
411
221
450
904
210
216
222
By Sector
tDA
tKA
State Government
Pr i vate
337
130 1,338
1 ,170
1 ,379
391
382
125
411
221
450
904
210
216
222
Total By Sector
337
130 1,338
1 ,170
1 ,379
391
382
125
411
221
450
904
210
216
222
5.3 LUST
By Regulation
f i nahc i a 1 Respons i b i 1 i ty
41
Mun i c i pa 1
Private
806
Technical Reguirements
Mun i c i pa 1
473
473
473
473
473
23
23
23
23
602
5
5
Private
4,777
4,777
4,777
4,777
4,777
433
433
433
433
11 ,153
95
95
Total by Regulation
5,250
5,250
6,097
5,250
5,250
456
456
456
456
11 ,755
100
100
By Sector
tocal Government
473
473
514
473
473
23
23
23
23
602
5
5
Pr i vate
4,777
4,777
5,583
4,777
4,777
433
433
433
433
11 ,153
95
95
Total By Sector
5,250
5,250
6,097
5,250
5,250
456
456
456
456
11 ,755
100
100
* Documentation for these estimates is
provided
in the regulation summaries in previous sections of this appendix.
November 1990
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A-34
Environmental Investments
Table A-3A: LAND POLLUTION CONTROL OPERATING COSTS FOR NEW REGULATIONS*
(millions of 1986 dollars)
Program/Regu1 at i on
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1
996
1997
1
998
1
999
2000
So 1 i d Waste
By Regulation
lOlun . Landf i 1 1
196
196
196
196
196
196
196
196
196
196
Mun. Comb. Ash & Air Stds
122
243
243
243
243
243
243
243
Used Oi 1
77
77
77
77
77
77
77
77
77
Total by Regulation
196
273
395
516
516
516
516
516
516
516
By Sector
local Government
196
196
318
439
439
439
439
439
439
439
Pr i vate
77
77
77
77
77
77
77
77
77
Total By Sector
196
273
395
516
516
516
516
516
516
516
Hazardous Waste
Solvents & Dioxins LDR
113
113
113
113
113
113
113
113
113
113
113
113
113
113
113
Cal ifornia List LDR
95
95
95
95
95
95
95
95
95
95
95
95
95
95
Fi rst Thi rds LDR
720
720
720
720
720
720
720
720
720
720
720
720
720
Second Th i rds LDR
23
23
23
23
23
23
23
23
23
23
23
23
Thi rd Thi rds LDR
322
322
322
322
322
322
322
322
322
322
322
Underground Injection LDR
54
62
107
107
107
107
107
107
107
107
107
107
107
Toxicity Characteristics
635
635
635
635
635
1 77
1 77
1 77
1 77
1 77
Location Standards
11
14
25
55
57
59
24
Correct i ve Act i on
234
235
236
588
1 ,175
1 ,295
1 ,416
1
,537
1 ,
658
1
, 779
1 ,
901
2,
023
2
,145
Min. Technology
53
53
53
53
53
53
53
53
53
53
53
53
53
Smal1 Qty Generators
32
32
32
32
32
32
32
32
32
32
32
32
32
32
32
Hazardous Waste Tanks
22
22
22
22
22
22
22
22
22
22
22
22
22
22
22
Total Hazardous Waste
167
262
1 ,323
1 ,355
1 , 723
2,710
3,297
3,417
3,549
3
,673
3,
347
3
,498
3,
622
3,
746
3
,833
By Sector
TlRA
3
3
3
3
3
3
3
3
3
3
3
3
3
3
State Government
9
9
9
9
9
9
9
5
5
5
5
5
5
5
Pr i vate
167
250
1 ,311
1 ,343
1 ,711
2,698
3,285
3,405
3,541
3
,665
3,
339
3
,490
3,
614
3,
738
3
,825
Total By Sector
167
262
1 ,323
1 ,355
1 , 723
2,710
3,297
3,417
3,549
3
,673
3,
347
3
,498
3,
622
3,
746
3
,833
LUST
By Regulation
£i nanc i a 1 Respons i b i 1 i ty
Mun i c i pa 1
25
25
34
34
34
7
7
7
7
7
7
Pr i vate
513
513
530
531
531
145
145
146
147
147
147
Technical Requirements
Mun i c i pa 1
80
131
131
131
131
23
23
23
23
23
7
7
Pr i vate
778
1 ,669
1 ,669
1 ,669
1 ,669
406
406
406
406
406
106
106
Total by Regulation
858
2,338
2,338
2,364
2,365
994
581
581
582
583
267
267
By Sector
local Government
80
156
156
165
165
57
30
30
30
30
14
14
Pr i vate
778
2,182
2,182
2,199
2,200
937
551
551
552
553
253
253
Total By Sector
858
2,338
2,338
2,364
2,365
994
581
581
582
583
267
267
* Documentation for these estimates is provided in the regulation summaries in previous sections of this appendix.
November 1990
-------
Appendix A—Costs of New Regulations
Table A-4: CHEMICAL POLLUTION CONTROL CAPITAL COSTS FOR NEW REGULATIONS"
(millions of 1986 dollars)
A-35
Rpt
Sec Program/Regulation
1990 1991 1992 1993 1994 1995 1996 1997 1
1999 2000
6.1 Toxic Substances
By Regulat
Asbestos
Asbestos
Total by R>
on
n Schools
n Products (a;
;qu I at i on
2 By Sector
Local Government
Pr i vate
Total Bv Sector
Footnotes to Table A-4
* Documentation for these estimates is provided in the regulation summaries in previous sections of this appendix,
(a) Only social cost data derived from welfare analysis are available. These costs are reported in Table A-4A.
November 1990
-------
A-36
Environmental Investments
Table A-4A: CHEMICAL POLLUTION CONTROL OPERATING COSTS FOR NEW REGULATIONS"
(millions of 1986 dollars)
Rpt
Sec Program/Regulation
1990 1991
1992 1993 1994 1995 1996 1997
1999 2000
6.1 Toxic Substances
3y Regulat
Asbestos
Asbestos
on
n Schools
n Products (a;
Total by Regulation
By Sector
Local Government
Pr i vate
Total Bv Sector
128
4
132
128
4
132
191
4
195
191
4
195
255
50
305
255
50
305
255
52
307
255
52
307
255
53
255
53
255
94
349
255
94
349
255
97
352
255
97
352
255
100
355
255
100
355
255
103
358
255
103
358
255
106
361
255
106
361
Footnotes to Table A-4A
* Documentation for these estimates is provided in the regulation summaries in previous sections of this appendix,
(a) Represent social cost estimates derived from welfare analysis.
November 1990
-------
Appendix A—Costs of New Regulations A-37
Table A-5: MULTI-MEDIA CONTROL CAPITAL COSTS FOR NEW REGULATIONS
(millions of 1986 dollars)
Rpt
Sec Program/Regulation 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
7.1 Mu11i-Med i a
7.4 SARA Title III
Municipal 149
Private 1,716 371 1,519
7.6 Total Multi-Media 1,865 371 1,519
Footnotes to Table A-5
* Documentation for these estimates is provided in the regulation summaries in previous sections of this appendix.
Rpt
Sec Program/Regulation
Table A-5A: MULTI-MEDIA CONTROL OPERATING COSTS FOR NEW REGULATIONS'
(millions of 1986 dollars)
1990 1991 1992 1993 1994 1995 1996 1997 1
1999 2000
7.1 Mu11i-Med i a
7.4 SARA Title III
Mun i c i pa I
Pr i vate
7.6 Total Mu11i-Med i a
101
101
24
310
334
24
216
240
24
538
562
24
538
562
24
538
562
24
538
562
24
538
562
24
538
562
24
538
562
24
538
562
24
538
562
24
538
562
Footnotes to Table A-5A
* Documentation for these estimates is provided in the regulation summaries in previous sections of this appendix.
November 1990
-------
B-l
APPENDIX B
ESTIMATION OF STATIONARY SOURCE AIR POLLUTION CONTROL COSTS
This appendix provides documentation for the derivation of the private, state, and local station-
ary source air pollution control costs by funding source, and the private air costs by pollutant, which
are presented in Chapter 3.
B.l. DATA SOURCES
Private, state, and local stationary source air pollution control costs were derived from two
sources:
• A series of articles entitled, "Pollution Abatement and Control Expenditures" published
annually in the Survey of Current Business by the Bureau of Economic Analysis (BEA),
U.S. Department of Commerce. (This source is hereafter referred to as the "BEA data");
and
• A series of articles entitled, "Pollution Abatement Costs and Expenditures" published
annually in the Current Industrial Reports by the Bureau of the Census, U. S. Department
of Commerce. (This source is hereafter referred to as the "Census data.")
The BEA data contains stationary source air pollution control capital costs (capital account) and
O&M costs (current account) for private manufacturing and non-manufacturing establishments, as
well as state and local governments over each of the years 1972-1987. The BEA data served as the
primary data source for the air pollution control costs by funding source presented in Chapter 3.
Table B-l presents the BEA estimates for private costs in current dollars, and Table B-9 shows state
and local costs.
The Census data, on the other hand, is much more limited. Census gathered costs over the years
1973-1986 for private manufacturing establishments only. Additionally, the Census data contains
capital costs but not O&M costs. The one feature of the Census data that makes it useful for the
purposes of this report is that it breaks down air costs by pollutant controlled, which the BEA does
not. Table B-2 shows the Census manufacturing capital costs estimates by pollutant in current
dollars. The use of the Census data to break down total private air costs by pollutant is discussed
below.
B.2. PRIVATE COSTS BY POLLUTANT
To break down private costs by pollutant controlled, several manipulations of both the BEA and
Census data were required. First, the Census data needed to be standardized due to inconsistency
in the way Census reports costs by pollutant for different years. For years 1983-1986, costs are
broken down into the following pollutant categories:
November 1990
-------
B-2
Environmental Investments
• Particulates;
• Sulfur oxides;
• Nitrogen oxides and carbon monoxide;
• Hydrocarbons (volatile organic compounds);
• Lead;
• Toxics; and
• Other pollutants.
For years prior to 1983, however, costs are broken out separately for only two of the above
pollutants—particulates and sulfur oxides. Two other categories are also included, but both of these
combine costs for more than one pollutant. One category includes combined costs for nitrogen
oxides, hydrocarbons, and carbon monoxide; the other includes costs for heavy metals, radioactive
and toxic substances, and other pollutants.
For the purposes of this report, we wished to show costs for each year over the period 1972-
1987 broken down by each of the seven pollutant categories provided by the Census data on
manufacturing capital costs for years 1983-1986. In order to do this, we calculated the relative
shares of total year 1983 manufacturing capital costs accounted for by each of the individual
pollutants within each of the two categories that combine costs for more than one pollutant. These
relative shares were then applied to total costs for each category of combined pollutant costs in
previous years to calculate costs for individual pollutants in years prior to 1983. This method is
summarized in Table B-2; the resulting capital cost estimates by pollutant for manufacturing
industries (in current dollars) are presented in Table B-3.
A second manipulation of the data was required to derive costs by pollutant for non-
manufacturing industries, which are not provided by the Census data. To do this, we assumed that
the proportion of total non-manufacturing air capital costs (from the BEA data) accounted for by
each of the seven pollutants corresponds to that given by the Census data for manufacturing
industries over each of the years 1972-1987. The factors used in this derivation are presented in
Table B-8. The resulting estimates of total private capital costs by pollutant are presented in Table
B-4 (current dollars) and Table B-5 (constant 1986 dollars).
A final adjustment was required to show O&M costs by pollutant, which were not reported by
either of the data sources. To do this, we assumed that the proportion of total O&M costs accounted
for by each pollutant corresponds to that given by our calculations for total capital costs in each
respective year. This enabled us to calculate O&M costs by pollutant for total private stationary
source air costs for each year over the period 1972-1987. The resulting estimates of private O&M
costs by pollutant are shown in Table B-6 (current dollars) and Table B-7 (constant 1986 dollars).
Due to the assumptions needed to produce a consistent set of private costs for different
pollutants, the estimates of costs broken down by pollutant controlled should be viewed as highly
speculative.
November 1990
-------
Appendix B—Stationary Source Air Pollution Control Costs B-3
B.3. STATE AND LOCAL COSTS
State and local stationary source air pollution control costs are presented in Table B-9 (constant
dollars) and Table B-10 (current dollars). These were derived from the BEA data. The data sources
did not include any information on state and local costs broken down by pollutant, so no such
estimates are presented in this report.
November 1990
-------
B-4 Environmental Investments
Table B-l: PRIVATE EXPENDITURES FOR AIR POLLUTION CONTROL
(millions of current dollars)
Line Source
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1
CAPITAL EXPENDITURES
2
P1 ant & Equ i p Expend
2
,172
2
,968
3
,328
3,914
3,798
3,811
3,977
4
,613
5,051
5,135
5,086
4,155
4,282
4,141
4,090
4,179
3
OPERATING EXPENDITURES
4
Pollution Abatement
5
Manufacturing Estabs
772
812
960
1 ,200
1 ,508
1 ,804
2,038
2
,337
2,709
3,068
2,832
6
Pr i v Owned E1ec Ut i 1s
279
361
593
633
633
779
944
1
,382
1 , 780
1 ,851
1 ,838
7
Other Nonmanufacturing
213
234
286
362
466
580
670
780
931
1 ,069
1 ,004
8
Total Pollution Abatement
1
,264
1
,407
1
,839
2,195
2,607
3,163
3,652
4
,499
5,420
5,988
5,674
6,149
6,690
6,997
7,072
7,763
9
Research and Development
411
451
492
466
543
654
789
924
869
852
912
1 ,315
1 ,359
1 ,427
1 ,499
1 ,574
10
Total Private Operating
1
,675
1
,858
2
,331
2,661
3,150
3,817
4,441
5
,423
6,289
6,840
6,586
7,464
8,049
8,424
8,571
9,337
Footnotes for Table B-l by Line
1972-1982 Figures from Survey of Current Business, July 1986
2 Business, on capital account, plant and equipment expenditures, Table 10, line 4
5 Business, on current account, private, manufacturing establishments, Table 10, line 10
6 Business, on current account, private, privately owned electric utility establishments, Table 10, line 11
7 Business, on current account, private, other nonmanufacturing establishments, Table 10, line 12
8 Sum of lines 5, 6, and 7
9 Pollution abatement and control, research and development, private, Table 9, line 20
10 Sum of lines 8 and 9
1983-1987 Figures from Survey of Current Business, June 1989
2 Business, on capital account, pant and equipment expenditures, Table 7, no line number
5 Line 8 consists of manufacturing companies, privately and cooperatively owned electric utilities, and other nonmanufacturing companies
6 Line 8 consists of manufacturing companies, privately and cooperatively owned electric utilities, and other nonmanufacturing companies
7 Line 8 consists of manufacturing companies, privately and cooperatively owned electric utilities, and other nonmanufacturing companies
8 Business, on current account, private, operation of plant and equipment, Table 7, no line number
9 Pollution abatement and control, research and development, private, Table 6, line 20
10 Sum of lines 8 and 9
November 1990
-------
Appendix B—Stationary Source Air Pollution Control Costs B-5
Table B-2: PRIVATE MANUFACTURING CAPITAL EXPENDITURES BY POLLUTANT
(millions of current dollars)
L
ne Po11utant
Factors
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1 987a
1
Part i cu1ates
N/A
836
1 ,074
1 ,299
1 ,044
983
1 ,056
1 ,191
1,114
1 ,181
851
453
497
579
541
N/A
2
Su1 fur Oxides
N/A
312
438
503
370
290
288
311
329
338
456
247
1 76
122
1 77
N/A
3
NOx and CO
0.248
N/A
163
234
272
237
236
339
383
496
496
348
53
34
49
64
N/A
4
Hydrocarbons/VOCs
0.752
N/A
*
*
*
*
*
*
*
*
*
*
161
195
355
493
N/A
5
Lead
0.073
N/A
*
*
*
*
*
*
*
*
*
*
8
10
48
50
N/A
6
Hazardous
0.252
N/A
*
*
*
*
*
*
*
*
*
*
29
46
38
50
N/A
7
Other
0.675
N/A
107
202
162
148
142
1 70
187
167
1 75
1 73
76
80
100
88
N/A
8 Total Private Mfg 1,418 1,948 2,236 1,798 1,652 1,854 2,072 2,105 2,190 1,828 1,027 1,037 1,292 1,463 N/A
Footnotes for Table B-2
Private capital expenditures for air pollution control taken from census data, U. S. Department of Commerce, Bureau of the Census, Pollution Abatement Costs and Expenditures (PACE)
for the years 1973-1986. Census data were not published prior to 1973. Survey for 1987 was not taken.
1973-1982 figures were taken from Table 2A, column "Capital expenditures, by air pollutants abated" (1979 figures are from Table 3A):
Line 1: sub-column "Particulates"
Line 2: sub-column "Sulfur oxides"
Line 3: sub-column "Nitrogen oxides, hydrocarbons, carbon monoxide"
Line 4: Not included in census data
Line 5: Not included in census data
Line 6: Not included in census data
Line 7: sub-column "Heavy metals, radioactive and toxic substances, and other"
1983-1986 figures were taken from Table 3A, column "Air," sub-column "By type of pollutant abated":
Line 1: sub-column "Particulates"
Line 2: sub-column "Sulfur oxides"
Line 3: sub-column "Nitrogen oxides and carbon monoxide"
Line 4: sub-column "Hydrocarbon volatile organic compounds"
Line 5: sub-column "Lead"
Line 6: sub-column "Hazardous air pollutants"
Line 7: sub-column "Other"
November 1990
-------
B-6
Environmental Investments
Factors were obtained in the following manner:
Line 3: Line 3 (1983) divided by the sum of Lines 3 and 4 (1983)
Line 4: Line 4 (1983) divided by the sum of Lines 3 and 4 (1983)
Line 5: Line 5 (1983) divided by the sum of Lines 5-7 (1983)
Line 6: Line 6 (1983) divided by the sum of Lines 5 - 7 (1983)
Line 7: Line 7 (1983) divided by the sum of Lines 5 - 7 (1983)
a Census data were not collected for 1987 .
November 1990
-------
Appendix B—Stationary Source Air Pollution Control Costs B
Table B-3: PRIVATE MANUFACTURING CAPITAL EXPENDITURES BY POLLUTANT
(millions of current dollars)
L
i ne Po11utant
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1
Part i cu1ates
N/A
836
1 ,074
1 ,299
1 ,044
983
1 ,056
1 ,191
1,114
1 ,181
851
453
497
579
541
N/A
2
Su1 fur Oxides
N/A
312
438
503
370
290
288
311
329
338
456
247
1 76
122
1 77
N/A
3
NOx and CO
N/A
40
58
68
59
59
84
95
123
123
87
53
34
49
64
N/A
4
Hydrocarbons/VOCs
N/A
122
1 75
204
1 78
1 77
255
288
373
373
262
161
195
355
493
N/A
5
Lead
N/A
8
15
12
11
10
13
14
12
13
13
8
10
48
50
N/A
6
Hazardous
N/A
27
51
41
37
36
43
47
42
44
44
29
46
38
50
N/A
7
Other
N/A
72
136
109
100
96
115
126
113
118
117
76
80
100
88
N/A
8
Total Private Mfg
N/A
1 ,418
1 ,948
2,236
1 , 798
1 ,652
1 ,854
2,072
2,105
2,190
1 ,828
1 ,027
1 ,037
1 ,292
1 ,463
N/A
Footnotes for Table B-3
Table B-3 is a recapitulation of Table B-2 with the following exceptions:
Figures for 1973-1982 from Line 3, Table B-2, were distributed between Lines 3 and 4, Table B-3
Line 3, Table B-3, was obtained by multiplying Line 3, Table B-2, by .248 (the factor in Line 3, Table B-2, column "Factors")
Line 4, Table B-3, was obtained by multiplying Line 3, Table B-2, by .752 (the factor in Line 4, Table B-2, column "Factors")
Figures for 1973-1982 from Line 7, Table B-2, were distributed among Lines 5, 6 and 7, Table B-3
Line 5, Table B-3, was obtained by multiplying Line 7, Table B-2, by .073 (the factor in Line 5, Table B-2, column "Factors")
Line 6, Table B-3, was obtained by multiplying Line 7, Table B-2, by .252 (the factor in Line 6, Table B-2, column "Factors")
Line 7, Table B-3, was obtained by multiplying Line 7, Table B-2, by .675 (the factor in Line 7, Table B-2, column "Factors")
November 1990
-------
B-8 Environmental Investments
Table B-4: TOTAL PRIVATE CAPITAL EXPENDITURES BY POLLUTANT
(millions of current dollars)
Po11utant
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1
Part i cu1ates
N/A
1
, 751
1
,835
2,274
2,205
2,269
2,265
2,652
2,672
2,770
2,367
1 ,834
2,053
1 ,858
1 ,513
1 ,546
2
Su1 fur Oxides
N/A
653
749
880
781
670
619
693
789
792
1 ,268
1 ,000
727
391
496
506
3
NOx and CO
N/A
85
99
118
124
135
181
212
296
289
241
215
138
156
1 78
182
4
Hydrocarbons/VOCs
N/A
256
300
358
375
409
547
641
894
874
728
650
803
1 ,139
1 ,378
1 ,407
5
Lead
N/A
16
25
21
23
24
27
30
29
30
35
34
41
154
141
144
6
Hazardous
N/A
56
87
71
79
83
92
105
101
103
121
115
188
122
139
142
7
Other
N/A
151
233
191
211
222
247
280
270
276
325
309
332
322
246
251
8
Total Private Capital
2,172
2
,968
3
,328
3,914
3,798
3,811
3,977
4,613
5,051
5,135
5,086
4,155
4,282
4,141
4,090
4,179
9
Total Priv Cap (Checksum)
N/A
2
,968
3
,328
3,914
3,798
3,811
3,977
4,613
5,051
5,135
5,086
4,155
4,282
4,141
4,090
4,179
Footnotes for Table B-4
Total Private Capital expenditures (Line 8, Table B-4) were multiplied by factors in Table B-8 to distribute expenditures among pollutants in direct ratio to the percentage of expenditure
per pollutant from census data.
November 1990
-------
Appendix B—Stationary Source Air Pollution Control Costs B
Table B-5: TOTAL PRIVATE CAPITAL EXPENDITURES BY POLLUTANT
(millions of 1986 dollars)
Po11utant
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1
Part i cu1ates
N/A
3,911
3,640
4,058
3,708
3,608
3,364
3,608
3,327
3,161
2,563
1 ,953
2,126
1 ,887
1 ,513
1 ,525
2
Su1 fur Oxides
N/A
1 ,458
1 ,485
1 ,571
1 ,314
1 ,065
919
943
982
904
1 ,374
1 ,064
752
397
496
499
3
NOx and CO
N/A
189
197
211
209
215
269
288
368
330
261
229
143
158
1 78
1 79
4
Hydrocarbons/VOCs
N/A
571
595
638
631
651
813
872
1,113
997
789
692
832
1 ,157
1 ,378
1 ,388
5
Lead
N/A
37
50
37
39
38
40
41
37
34
38
36
42
156
141
142
6
Hazardous
N/A
126
1 73
127
132
132
137
142
126
118
131
123
195
123
139
140
7
Other
N/A
336
462
341
354
352
366
381
336
315
352
329
343
327
246
248
8
Total Private Capital
4,994
6,628
6,601
6,983
6,387
6,061
5,908
6,276
6,288
5,860
5,508
4,425
4,433
4,207
4,090
4,122
9
Fixed-weighted indexes
0.435
0.448
0.504
0.560
0.595
0.629
0.673
0.735
0.803
0.876
0.923
0.939
0.966
0.984
1 .000
1 .014
Footnotes for Table B-5
Figures in Table B-5 were indexed to 1986 dollars by dividing each figure in Table B-4 by the fixed-weighted price index for the given year (Line 9, Table B-5).
November 1990
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B-10 Environmental Investments
Table B-6: TOTAL PRIVATE OPERATING EXPENDITURES BY POLLUTANT
(millions of current dollars)
Po11utant
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1
Part i cu1ates
N/A
1 ,096
1
,285
1
,546
1
,829
2,272
2,529
3,117
3,327
3,690
3,065
3,294
3,859
3,779
3,171
3,454
2
Su1 fur Oxides
N/A
409
524
599
648
671
691
815
982
1 ,056
1 ,642
1 , 796
1 ,366
796
1 ,038
1 ,131
3
NOx and CO
N/A
53
69
80
103
136
202
249
368
385
312
386
260
316
373
406
4
Hydrocarbons/VOCs
N/A
160
210
243
311
410
611
754
1,113
1 ,164
943
1 ,167
1 ,510
2,317
2,887
3,145
5
Lead
N/A
10
18
14
19
24
30
36
37
40
46
60
77
313
295
322
6
Hazardous
N/A
35
61
48
65
83
103
123
126
137
157
207
353
247
292
318
7
Other
N/A
94
163
130
1 75
222
275
329
336
368
421
554
624
655
515
561
8
Total Private Operating
1 ,675
1 ,858
2
,331
2
,661
3
,150
3,817
4,441
5,423
6,289
6,840
6,586
7,464
8,049
8,424
8,571
9,337
9
Total Priv Oper (Checksum)
N/A
1 ,858
2
,331
2
,661
3
,150
3,817
4,441
5,423
6,289
6,840
6,586
7,464
8,049
8,424
8,571
9,337
Footnotes for Table B-6
Factors in Table B-8 were applied to Total Private Operating Expenditures (BEA data, Line 8, Table B-6), to distribute expenditures among pollutants in direct ratio to the percentage of
expenditure per pollutant from census data. This was accomplished by multiplying annual Total Private Operating (Line 8, Table B-6) times factors per pollutant in Table B-8.
November 1990
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Appendix B—Stationary Source Air Pollution Control Costs B-
Table B-7: TOTAL PRIVATE OPERATING EXPENDITURES BY POLLUTANT
(millions of 1986 dollars)
Po11utant
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1
Part i cu1ates
N/A
3
,240
2,768
3,047
3
,446
3,944
4,096
4
,240
3,742
3,743
3,043
3,235
3,699
3,550
3,171
3,400
2
Su1 fur Oxides
N/A
1
,208
1 ,129
1 ,179
1
,221
1 ,164
1,119
1
,108
1 ,105
1 ,071
1 ,631
1 , 764
1 ,309
748
1 ,038
1,113
3
NOx and CO
N/A
157
150
158
194
235
327
339
414
390
310
379
249
297
373
400
4
Hydrocarbons/VOCs
N/A
473
452
479
587
712
990
1
,025
1 ,252
1 ,181
937
1 ,146
1 ,448
2,177
2,887
3,095
5
Lead
N/A
30
38
28
36
42
49
49
41
41
45
59
74
294
295
31 7
6
Hazardous
N/A
104
131
95
123
144
167
167
141
139
156
203
339
232
292
313
7
Other
N/A
279
352
256
329
385
446
448
378
373
418
545
598
615
515
552
8
Total Private Operating
5,400
5
,491
5,021
5,243
5
,935
6,626
7,194
7
,377
7,072
6,938
6,540
7,331
7,715
7,914
8,571
9,189
9
Fixed-weighted indexes
0.310
0
.338
0.464
0.508
0
.531
0.576
0.617
0
. 735
0.889
0.986
1 .007
1 .018
1 .043
1 .064
1 .000
1 .016
Footnotes for Table B-7
Figures in Table B-7 were indexed to 1986 dollars by dividing each figure in Table B-6 by the fixed-weighted price index for the given year (Line 9, Table B-7).
November 1990
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B-12
Environmental Investments
Table B-8: FACTORS USED TO DISTRIBUTE TOTALS ACROSS POLLUTANTS
Po11utant
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1
Part i cu1ates
N/A
0.590
0.551
0.581
0.581
0.595
0.569
0.575
0.529
0.539
0.465
0.441
0.479
0.449
0.370
0.370
2
Su1 fur Ox i des
N/A
0.220
0.225
0.225
0.206
0.176
0.156
0.150
0.156
0.154
0.249
0.241
0.170
0.094
0.121
0.121
3
NOx and CO
N/A
0.029
0.030
0.030
0.033
0.036
0.045
0.046
0.059
0.056
0.047
0.052
0.032
0.038
0.043
0.043
4
Hydrocarbons/VOCs
N/A
0.086
0.090
0.091
0.099
0.107
0.138
0.139
0.177
0.170
0.143
0.156
0.188
0.275
0.337
0.337
5
Lead
N/A
0.006
0.008
0.005
0.006
0.006
0.007
0.007
0.006
0.006
0.007
0.008
0.010
0.037
0.034
0.034
6
Hazardous
N/A
0.019
0.026
0.018
0.021
0.022
0.023
0.023
0.020
0.020
0.024
0.028
0.044
0.029
0.034
0.034
7
Other
N/A
0.051
0.070
0.049
0.055
0.058
0.062
0.061
0.053
0.054
0.064
0.074
0.077
0.078
0.060
0.060
8 Total N/A 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000
Footnotes for Table B-8
1 Particulates (Line 1, Table B-3) divided by Total Private Mfg (Line 8, Table B-3)
2 Sulfur Oxides (Line 2, Table B-3) divided by Total Private Mfg (Line 8, Table B-3)
3 NOx and CO (Line 3, Table B-3) divided by Total Private Mfg (Line 8, Table B-3)
3 Hydrocarbons/VOCs (Line 4, Table B-3) divided by Total Private Mfg (Line 8, Table B-3)
4 Lead (Line 5, Table B-3) divided by Total Private Mfg (Line 8, Table B-3)
1 Hazardous figures (Line 6, Table B-3) divided by Total Private Mfg (Line 8, Table B-3)
1 Other (Line 7, Table B-3) divided by Total Private Mfg (Line 8, Table B-3)
Figures for 1987 were calculated in the same proportions as 1986 since a 1987 survey was not conducted.
November 1990
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Appendix B—Stationary Source Air Pollution Control Costs B-13
Table B-9: STATE AND LOCAL AIR POLLUTION CONTROL COSTS
(millions of current dollars)
.\ ne Source
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
State & Local Capital
1 Pub 1-owned e1ec ut i 1 i t i es
63
82
104
102
156
197
205
285
398
451
508
422
416
328
312
277
State & Local Operating
2 Pollution abatement
0
0
0
1
1
1
0
0
0
0
0
4
14
12
14
15
3 Regulation & monitoring
95
115
131
139
135
161
183
200
207
226
230
239
250
250
307
300
4 Research & development
1 7
6
7
8
6
7
8
7
5
0
2
6
4
3
4
2
5 Pub 1-owned e1ec ut i 1 i t i es
23
29
56
45
58
60
72
106
148
135
141
143
147
189
182
192
6 Total St & Local 0&M
135
150
194
193
200
229
263
313
360
361
373
392
415
454
507
509
7 Fixed-weighted indexes
0.393
0.418
0.493
0.555
0.591
0.631
0.674
0.740
0.817
0.890
0.943
0.956
0.989
0.998
1 .000
1 .004
Footnotes for Table B-9
1972-1982 Figures from Survey of Current Business, July 1986
1 Government, government enterprise fixed capital, publicly owned electric utilities, Table 10, line 27
2 Pollution abatement and control, pollution abatement, government, state and local, Table 9, line 14
3 Pollution abatement and control, regulation and monitoring, state and local, Table 9, line 18
4 Pollution abatement and control, research and development, state and local, Table 9, line 22
5 Business, on current account, government enterprise, publicly owned electric utilities, Table 10, line 16
6 Sum of lines 2-5
1983-1987 Figures from Survey of Current Business, June 1989
1 Government, government enterprise fixed capital, publicly owned electric utilities, Table 7, no line number
2 Pollution abatement and control, pollution abatement, government, state and local, Table 7, no line number
3 Pollution abatement and control, regulation and monitoring, state and local, Table 7, no line number
4 Pollution abatement and control, research and development, state and local, Table 7, no line number
5 Business, on current account, government enterprise, publicly owned electric utilities, Table 7, no line number
6 Sum of lines 2-5
November 1990
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B-14 Environmental Investments
Table B-10: STATE AND LOCAL AIR POLLUTION CONTROL COSTS
(millions of 1986 dollars)
Line Source
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
State & Local Capital
1 Pub 1-owned e1ec ut i 1 i t i es
160
196
211
184
264
312
304
385
487
507
539
442
421
329
312
276
State & Local Operating
2 Pollution abatement
0
0
0
2
2
2
0
0
0
0
0
4
14
12
14
15
3 Regulation & monitoring
242
275
266
250
228
255
272
270
253
254
244
250
253
250
307
299
4 Research & development
43
14
14
14
10
11
12
9
6
0
2
6
4
3
4
2
5 Pub 1-owned e1ec ut i 1 i t i es
59
69
114
81
98
95
107
143
181
152
150
150
149
189
182
191
6 Total St & Local O&M
343
359
394
348
338
363
390
423
441
406
396
410
420
455
507
507
Footnotes for Table B-10
Figures in Table B-l 0 were indexed to 1986 dollars by dividing each figure in Table B-9 by the fixed-weighted price index for the given year (Line 7, Table B-9).
November 1990
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C-l
APPENDIX C
ESTIMATION OF MOBILE SOURCE EMISSIONS CONTROL COSTS
This appendix provides background documentation and component costs for the mobile source
air pollution control cost estimates listed and discussed in Chapter 3. The derivation of the cost
estimates is discussed below; this is followed by a set of data tables C-1 through C-17 that show the
various components of mobile source costs.
The mobile source costs were derived using a special EPA analysis instead of the Commerce
Department "Pollution Abatement and Control Expenditure" (PACE) reports. The data sources used
in the cost derivations include EPA Regulatory Impact Analyses (RIAs) and other EPA reports.
These are listed at the end of the discussion that follows. The estimated mobile source costs
represent the direct pollution control compliance costs—both capital and operation and maintenance
costs—borne by purchasers and users of mobile sources equipped with such controls. Total capital
and costs for all mobile sources are shown in Table C-l.
C.l. GENERAL METHODOLOGY
The basic approach used to estimate the costs of controlling pollution emissions from motor
vehicles was to calculate the purchase price and operation and maintenance (O&M) cost premiums
associated with vehicles equipped with pollution abatement controls over the costs for vehicles not
equipped with such controls. Calculations of both capital expenditures and O&M costs were made
for each of several vehicle classes. Capital expenditures were annualized using three different capital
amortization rates—three, seven, and ten percent, and an assumed capital life of 10 years.
Annualized capital costs were added to annual O&M costs to calculated total annualized costs. Only
the seven percent annualization is shown in this appendix. Other annualized costs are shown in
Tables 3-3C through 3-3H.
The methodology used to project future costs for existing mobile source regulations differed
from the projection methodology used for most other programs included in this report. Rather than
using regression models to extrapolate historical cost data, future mobile source costs were
calculated by multiplying unit vehicle pollution control hardware cost and O&M cost estimates by
estimates of projected vehicle production and use levels, respectively, in future years for each
vehicle class.
C. 1.1. New Regulation Costs
The cost for new regulations that were not fully implemented by the end of 1988 were added
to the projected future costs associated with established mobile source regulations. These include:
oxides of nitrogen and particulate emissions tailpipe standards on light-duty trucks and heavy-duty
engines; the diesel fuel sulfur content standard; and the fuel volatility rule, which is intended to limit
the evaporation of volatile organics from gasoline. The costs associated with these regulations are
broken out in Table C-l5. These regulation costs are also broken down by the pollutants they are
November 1990
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C-2
Environmental Investments
intended to control, which are shown in Table C-16. For regulations aimed at more than one pollu-
tant, costs were apportioned equally between the two pollutants. The data show that the main focus
of new regulatory initiatives is on the control of precursors to ozone formation and emissions of
particulate matter.
C. 1.2. Full Implementation Costs
Costs associated with fully implementing certain existing regulations and programs are also
included. These costs are associated with the additional efforts required to meet the national
ambient air quality standard (NAAQS) for ozone. Table C-17 lists the mobile source measures that
are included in the Administration's proposed strategy for achieving the ozone NAAQS, and the best
available data on their costs. (These were obtained from Data Sources 18, 19, and 20 listed at the
end of the narrative.) Since these measures are currently being debated as part of Clean Air Act
amendments, they are subject to change pending final legislation.
C.2. COSTS BY VEHICLE CLASS
The mobile source analysis is organized according to the following vehicle classes in the
sections listed:
C.2.1. Light-duty vehicles,
C.2.2. Trucks, and
C.2.3. Motorcycles and aircraft.
C.2.1. Light-Duty Vehicles
Costs for light-duty vehicles (passenger cars) are summarized in Table C-2; supporting detail
is given in Table C-10. Total historical and projected future capital expenditures for all mobile
source emission control are associated primarily with pollution abatement equipment on passenger
cars, which comprise the bulk of all mobile sources of pollution. These capital costs reflect
increasingly stringent regulatory requirements and improvements in pollution control technologies
over time. Each of the following devices have been used at one time or another dating back to the
Clean Air Act Amendments of 1965: air pumps, exhaust-gas recirculation valves, high altitude
controls, evaporative emissions controls, and catalysts. The cost estimates for each component were
computed on a per-vehicle basis by engineering cost analyses commissioned by EPA or completed
in-house. The resulting per-vehicle capital costs were multiplied by vehicle production estimates
to determine annual capital costs for each year.
Costs for operation and maintenance (O&M) of emission abatement devices include
maintenance costs, fuel price penalty costs, and fuel consumption penalty costs. Operating costs per
vehicle were multiplied by total vehicles in use to determine annual cost. Each of the three types
of O&M costs are shown in Table C-2 and discussed below.
November 1990
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Appendix C—Mobile Source Emissons Control Costs
C-3
Total mobile source maintenance costs include the costs of maintaining pollution control
equipment plus the cost of vehicle inspection/maintenance programs. Table C-2 shows that
pollution controls have resulted in a net maintenance cost savings since 1975, the year that catalytic
devices were first required on passenger vehicles. Catalysts require the use of unleaded fuel which
is more beneficial for a vehicle than leaded gasoline. The use of unleaded fuels increases the
longevity of exhaust systems and spark plugs, thus reducing maintenance costs. This cost savings
was added to the cost of inspection/maintenance activities which includes the fee applied to every
vehicle tested plus a weighted average cost of repair for those vehicles failing inspection.
The second O&M component—the fuel price penalty—reflects the price differential between
unleaded and leaded gasoline. Historically, the price of unleaded fuel has been two to 3.5 cents per
gallon higher than the price of leaded fuel. However, EPA estimates that by 1990 no significant
price differential will exist between unleaded and leaded fuels; thus, no operating costs will be
associated with fuel price penalty in years 1990-2000. The third component of mobile source O&M
costs—fuel economy penalty—exists because vehicles with pollution control equipment get lower
gas mileage than comparable vehicles without such controls. As shown in Tables C-2, this fuel
economy penalty comprised the largest component of total operating costs until the late 1970s,
although it declined over the period 1975-1980 as cars became more fuel efficient. EPA estimates
that in 1982, the penalty became a net benefit as the change to a three-way catalyst in 1980
eventually made vehicles with pollution controls more fuel efficient than vehicles not equipped with
controls.
As shown in Table C-2, the estimated switch in the maintenance and fuel economy O&M
components from positive to negative costs leads to an overall net mobile source O&M cost savings
in the year 1989. Savings from these two components coupled with the elimination of the fuel price
penalty in 1990, are estimated to increase overall O&M savings significantly over the period 1990-
2000. This greatly lowers the estimates of total annualized costs for mobile sources. It should be
noted that other sources of mobile source cost estimates—such as the Commerce Department PACE
reports—do not recognize any beneficial effects of pollution control devices on O&M costs, and
thus report significantly higher overall costs for mobile source pollution control.
The only new regulation expected to affect passenger car costs is the fuel volatility rule. The
cost for this rule was subtracted from projected future O&M cost savings for light-duty vehicles.
C.2.2. Trucks
The discussion of trucks is divided into five classes based on gross vehicle weight. They are
discussed in the sections listed:
C.2.2.1. Light-duty trucks weighing 0-6,000 pounds (LDT1) and light-duty trucks weighing
6,000-8,500 pounds (LDT2),
C.2.2.2. Heavy-duty gasoline engine vehicles weighing 8,500-10,000 pounds (HDGE1),
November 1990
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C-4
Environmental Investments
C.2.2.3. Heavy-duty gasoline engine vehicles weighing more than 10,000 pounds (HDGE2),
and
C.2.2.4. Heavy-duty diesel engine vehicles weighing more than 10,000 pounds (HDDE).
Capital and O&M cost calculations for trucks parallel those for light-duty vehicles, with the
primary differences being: 1) the schedule for implementation of regulatory requirements; and 2)
the unit costs for pollution abatement devices. Differences specific to particular classes of trucks
are discussed below.
C.2.2.1. LDT1 and LDT2
The control costs for LDT1 and LDT2 are summarized in Tables C-3 and C-4; supporting detail
is given in Tables C-l 1 and C-12. These classes of trucks are subject to two new regulations: the
fuel volatility rule and the NOx truck standard. The NOx standard will result in additional capital
costs beginning with the 1988 model year.
C.2.2.2. HDGE1
The control costs for HDGE1 are presented in Table C-5; supporting detail is given in Table C-
13. While evaporative emission controls existed for HDGE1 as far back as 1972, the first large cost
increase occurred with the 1979 model year as emission control requirements were strengthened for
the first time. Initiatives to control hydrocarbons and carbon monoxide were enhanced again in 1985
and 1986, resulting in sharp increases in control costs. New regulations affecting HDGE1 include
the fuel volatility rule and the NOx truck standard.
C.2.2.3. HDGE2
The control costs for HDGE2 are presented in Table C-6; supporting detail is given in Table C-
14. Calculations for HDGE2 parallel those for HDGE1 except that no fuel price penalty was
quantifiable for HDGE2. The fuel volatility rule and the NOx truck standard are the two new
regulations affecting this vehicle class.
C.2.2.4. HDDE
The control costs for HDDE are presented in Table C-17. Capital costs resulting from emission
control standards for HDDE began with the 1979 model year and increased with the 1985 model
year, due to more stringent standards for hydrocarbons and carbon monoxide. No incremental
maintenance costs are attributed to pollution control requirements for diesel engines.
Many of the new regulations scheduled for motor vehicles apply to HDDE vehicles. The diesel
fuel rule restricts the sulfur content in diesel fuel to .05 percent beginning in 1994. EPA has
estimated the cost to de-sulfur fuel is approximately 1.8 cents per gallon. This unit cost was
multiplied by fleet fuel consumption estimates to derive annual cost estimates for HDDE. (See Data
Source 16.)
November 1990
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Appendix C—Mobile Source Emissons Control Costs
C-5
The NOx and particulate matter (PM) standards affecting HDDE will result in five hardware
cost additions between 1988 and 1994. Increased costs for fuel economy penalty and maintenance
are also associated with the PM portion of the standards. Fuel economy penalties were derived from
engineering studies that factored in annual diesel fuel consumption rates and an assumed diesel fuel
price of $1.00 per gallon.
C.2.3. Motorcycles and Aircraft
The control costs for motorcycles are summarized in Table C-8; aircraft costs are presented in
Table C-9. For motorcycles, the control of hydrocarbons and carbon monoxide emissions began
with the 1978 model year. Maintenance costs have not been quantified and a fuel price penalty does
not apply. For aircraft, emission controls began in 1975, and incremental maintenance costs were
quantifiable. However, these maintenance costs are offset by fuel economy savings that accrue from
improved combustion efficiency at idle.
C.3. DATA SOURCES
1. Wilcox, Richard S., "Economic Impact and Cost Effectiveness for Aircraft Emission
Controls," U.S. EPA Standards Development and Support Branch, Memorandum of August
12, 1982.
2. Motor Vehicle Manufactures Association of the United States, Inc., MVMA Motor Vehicle
Facts and Figures '88, 1988.
3. Motorcycle Industry Council, Inc. 1987 Motorcycle Statistical Annual, and 1978
Motorcycle Statistical Annual.
4. Gray, Charles L., "Updated Cost Estimates of Controlling HC Emissions From Mobile
Sources", U.S. EPA Emissions Control Technology Division, Memorandum. November 28,
1983.
5. U.S. EPA, The Cost of Clean Air and Water Report to Congress - 1984, EPA-230/05-84-
008, Washington, DC, May 1984.
6. U.S. EPA, Cost and Economic Assessment of Alternative National Ambient Air Quality
Standards for Carbon Monoxide (Revised), OAQPS, EPA-450/5-85-006, July 1985.
7. Energy and Environmental Analysis, Inc., The Motor Fuel Consumption Model, Thirteenth
Periodical Report, May 26, 1987.
8. U.S. EPA, Compilation of Air Pollution Emissions Factors - Volume IP. Mobile Sources,
AP-42, Fourth Edition, September 1985.
November 1990
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C-6
Environmental Investments
9. Energy Information Administration, Monthly Energy Review, DOE/EIA-0035(88/08) U.S.
Department of Energy, Washington, DC, August 1988.
10. Lindgren, Leroy H., Cost Estimations for Emission Control Related Components Systems
and Cost Methodology Description, Rath & Strong, Inc., Lexington, MA. EPA-460/3-78-
002, March 1978.
11. U.S. EPA, Draft Regulatory Impact Analysis - Control of Gasoline Volatility and
Evaporative Hydrocarbon Emissions from New Motor Vehicles, Office of Air and Radiation,
Office of Mobile Sources, May 1987.
12. U.S. EPA, Regulation Impact Analysis, and Oxides of Nitrogen Pollutant Specific Study and
Summary and Analysis of Comments, Office of Mobile Sources, March 1985.
13. U.S. EPA, "Further Reflections on the Cost of the Mobile Source Provisions of the Mitchell
Bill," Office of Mobile Sources, September 1987.
14. U.S. Bureau ofthe Census, Statistical Abstract of the United States: 1988 (108th Edition),
Washington, DC, 1987.
15. U.S. EPA, Inspection and Maintenance Program Implementation Summary, Office of
Mobile Sources, Ann Arbor, MI, January 1987.
16. U.S. EPA, Draft Regulatory Impact Analysis - Control of Sulfur and Aromatics Contents of
On-Highway Diesel Fuel, Office of Air and Radiation, Office of Mobile Sources, July 1989.
17. Federal Register, Notice of Final Rulemaking, "Volatility Regulations for Gasoline and
Alcohol Blends Sold in Calendar Year 1989 and Beyond", March 22, 1989.
18. U.S. EPA, Ozone Nonattainment Analysis: A Comparison of Bills An Interim Report,
Prepared for the Office of Air and Radiation, by E.H. Pechan and Associates, January 1990.
19. Title II-Provisions Relating to Mobile Sources, H.R. 3030, 101st Congress, 1st Session, July
27, 1989.
20. U.S. EP A, Analysis ofCosts ofHazardous Air Pollutant Controls Under Administration Bill,
H.R. 2585, and S. 816., Prepared by Energy and Environmental Analysis, Inc. for the Office
of Policy Analysis and Review, the Office of Air and Radiation, and the Office of Air
Quality Planning and Standards, U.S. Environmental Protection Agency, October 27, 1989.
November 1990
-------
Appendix C—Mobile Source Emissons Control Costs C-7
Table C-l: TOTAL CONTROL COSTS FOR ALL VEHICLE CLASSES
(millions of 1986 dollars)
Li ne
1972
1 973 1 974
1 975 1 976 1 977 1 978
1979 1980
1981
1982
1983
1984
1985
1986
1 Capital Expenditure
268
564 472
2,775 3,256 3,548 3,685
4,010 3,716
4,189
4,049
4,812
6,125
6,664
6,885
2 Operating Cost
1 ,307
2,118 2,082
1,828 1,597 1,494 1,293
1,027 836
443
192
269
114
(3)
236
Footnotes to Table C-l by Line
1. Represents the sum of each line 2 entry in Tables C-2 through C-9. For each vehicle class, capital expenditure is calculated on a per vehicle basis according to the vehicle hardware
necessary to comply with emissions regulations. This figure is then multiplied by each year's production estimate to derive a total capital expenditure per year.
2. Represents the sum of each line 3 entry in Tables C-2 through C-9. For each vehicle class, operating cost is the sum of the following component costs: maintenance, fuel price penalty,
and fuel economy penally. Each of these components costs will be described in more detail in the footnotes to Table C-2. This sum is calculated on a per vehicle basis and is then
multiplied by the total vehicles in use per year to derive total operating cost. Total vehicles in use per year accounts for 1) each year's production and 2) vehicles surviving from
previous model years. See Tables C-l 0 through C-l 4 for supporting details and footnotes.
November 1990
-------
C-8 Environmental Investments
Table C-1A: TOTAL CONTROL COSTS FOR ALL VEHICLE CLASSES
(millions of 1986 dollars)
ne
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
3 Capital Expenditure
6,885
6,653
6,883
6,573
6
.,663
6,876
7,022
7,222
7,403
7,559
7,665
7,827
7,941
8,061
8,179
4 Ex i st i ng Regs.
6,885
6,653
6, 788
6,476
6
.,566
6, 729
6,871
7,066
7,217
7,367
7,468
7,623
7,732
7,844
7,956
5 New Regs.
0
0
96
97
97
147
151
156
186
191
197
203
210
216
223
6 Operati ng Cost
236
238
213
(1)
(1
,630)
(1 ,317)
(1 ,138)
214
274
1 ,168
1 ,919
2,692
3,444
3,481
3,355
7 Ex i st i ng Regs.
236
238
213
(136)
CI,
766)
(1,694)
(1,623)
(1,549)
(1 ,459)
(1,372)
(1,320)
(1 ,246)
(1 ,191)
(1 ,153)
(1 ,135)
8 New Regs.
0
0
0
135
135
377
484
437
388
335
318
301
282
266
249
9 Ful1 Implementation
NA
NA
NA
NA
NA
NA
NA
1326
1345
2205
2922
3637
4353
4368
4240
Footnotes to Table C-l A by Line
3. Sum of lines 4 and 5.
4. Cost is determined using the same methodology described in line 1 of footnotes to Table C-l. Existing regulations only.
5. From Table C-l 5. New regulations only.
6. The sum of lines 7, 8 and 9.
7. Same methodology used in line 2 of Table C-l. Existing regulations only.
8. From Table C-l 5A. New regulations only.
9. From Table C-l 7.
November 1990
-------
Appendix C—Mobile Source Emissons Control Costs C-9
Table C-2: CONTROL COSTS FOR LIGHT-DUTY VEHICLES (LDV)
(millions of 1986 dollars)
ne
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1 Annual ized Cost at 7%
999
1 ,603
1 ,637
1 ,715
1 ,879
2,253
2,513
2,720
2,960
3,083
3,269
3,856
4,269
4,530
5,050
2 Capi tal Expend.
208
442
343
2,446
2,861
3,142
3,202
3,020
2,973
3,485
3,277
3,965
4,908
5,258
5,416
3 Operating Cost
962
1 ,504
1 ,489
1 ,220
979
908
714
493
315
(52)
(301)
(213)
(447)
(584)
(427)
4 Ma int. Exp.
140
193
232
(104)
(238)
(354)
(502)
(638)
(747)
(829)
(823)
(868)
(590)
(598)
(394)
5 Fuel Price Penalty
0
0
0
125
239
384
453
495
557
590
622
692
770
880
993
6 Fuel Economy Penalty
822
1 ,311
1 ,257
1 ,200
979
878
763
636
505
187
(101)
(37)
(627)
(867)
(1 ,026)
Footnotes to Table C-2 by Line
1. Costs were annualized at 7 percent using the same methodology applied throughout this report (see sec. 1.3.1.) except that the depreciation schedule for mobile sources is 10 years.
2. Capital expenditure is calculated on a per vehicle basis and is the sum of the costs of the various hardware devices required to comply with emissions regulations. For a more detailed
listing of these components see Table C-10, line 1. The sum of these costs are then multiplied by yearly production estimates to derive total expenditure. Only costs due to regulations
implemented between 1972 and 1988 are considered.
3. Sum of lines 4 through 6.
4. Maintenance expenditure per vehicle (Table C-l 0) times total vehicles in use (Table C-l 0).
5. Derived by multiplying the unleaded miles driven per year (Table C-10) by the quotient of the premium in price for unleaded gasoline (Ref. 5,4) and the fuel efficiency (mpg) for
a vehicle equipped with emissions controls (Ref. 5).
6. This factor is based on the fuel economy penally per vehicle mile (Table C-10). The per mile figure is then multiplied by total miles travelled per year for all vehicles in use. This
is based on each year's production (Table C-10), annual miles driven per vehicle (Ref. 8, p.H-11), and the survival rate for each model year (Ref. 2, p. 26) to account for previous years'
production.
November 1990
-------
C-10 Environmental Investments
Table C-2A: CONTROL COSTS FOR LIGHT-DUTY VEHICLES (LDV)
(millions of 1986 dollars)
ne 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
6,926
8 Existinq Reqs. 5,050 5,304 5,546 5,550 4,704 5,063 5,466 5,790 5,993 6,152 6,283 6,453 6,597 6,775 6,926
9 New Regs ",A ",A ",A ~ ~ ~ ~ ~ ~ ~ ~ ~
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
5,050
5,304
5,546
5,550
4,806
5,165
5,466
5,790
5,993
6,152
6,283
6,453
6,597
6, 775
5,050
5,304
5,546
5,550
4,704
5,063
5,466
5,790
5,993
6,152
6,283
6,453
6,597
6, 775
NA
NA
NA
NA
102
102
0
0
0
0
0
0
0
0
5,416
5,105
5,199
4,865
4,957
5,049
5,141
5,280
5,372
5,463
5,504
5,595
5,639
5,683
5,416
5,105
5,199
4,865
4,957
5,049
5,141
5,280
5,372
5,463
5,504
5,595
5,639
5,683
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
10 Capital Expend. 5,416 5,105 5,199 4,865 4,957 5,049 5,141 5,280 5,372 5,463 5,504 5,595 5,639 5,683 5,727
11 Existinq feqs. 5,416 5,105 5,199 4,865 4,957 5,049 5,141 5,280 5,372 5,463 5,504 5,595 5,639 5,683 5,727
12 New Regs. NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
13 Operatinq Cost (427) (450) (492) (648) (1,774) (1,637) (1,600) (1,462) (1,325) (1,196) (1,077) (976) (894) (833) (790)
14 Existing Reqs. (4271 (450l (4921 (750l (1.8761 (1.7391 (1.600l (1.4621 (1.3251 (1.1961 (1.0771 (9761 (8941 (8331 (790l
15 Ma int. Exp (3941 (390l (4251 (4471 (4691 (490l (5091 (5281 (5461 (5621 (5781 (5941 (611 1 (6291 (6461
16 Fuel Price Penalty 99^ T,09^ T, 19$ T,046 6 6 6 6 6 6 6 6 6 6 6
17 Fuel Economy Penalty(1,026) (1,154) (1,261 ) (1,343) (1,407) (1,250) (1,091 ) (934) (779) (633) (499) (382) (283) (204) (144)
18 New Regs. NA nA NA 102 102 102 ** ** ** ** ** ** ** ** **
Footnotes to Table C-2A by Line
7. Sum of lines 8 and 9.
8. See footnote 1, Table C-2. Existing regulations only.
9. See footnote 1, Table C-2. New regulations only.
10. Sum of lines 11 and 12.
11. See footnote 2, Table C-2. Existing regulations only.
12. See footnote 2, Table C-2. New regulations only.
13. Sum of lines 14 and 18.
14. Sum of lines 15 through 17.
15. See footnote 4, Table C-2. Existing regulations only.
16. See footnote 5, Table C-2. Existing regulations only.
17. See footnote 6, Table C-2. Existing regulations only.
18. The only regulation that qualifies as a new regulation and applies to light-duty vehicles is fuel volatility (Phase I RVP).
The * * beginning in 1992 are used to indicate that, although phase II RVP is expected to begin in 1992, current cost estimates are included with the proposed Clean Air Act
ammendment section (see Table C-l 7).
November 1990
-------
Appendix C—Mobile Source Emissons Control Costs C-ll
Table C-3: CONTROL COSTS FOR LIGHT-DUTY TRUCKS (LDT1)
(millions of 1986 dollars)
ne
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1 Annual i zed Cost
148
257
246
306
318
338
382
421
453
484
528
568
692
759
856
2 Capi tal Expend.
29
73
61
276
331
327
326
330
244
262
291
348
566
628
666
3 Operating Cost
143
242
222
243
208
182
180
1 72
1 70
164
1 70
1 71
224
241
291
4 Ma int. Exp.
7
8
7
(3)
(9)
(10)
(16)
(21)
(25)
(28)
(21)
(23)
21
22
53
5 Fuel Price Penalty
0
0
0
22
42
60
81
95
110
119
129
140
156
180
204
6 Fuel Economy Penalty
136
234
215
224
1 75
132
114
98
85
73
63
54
46
40
33
All footnotes correspond to the footnotes for Table C-2. Refer to Table C-l 1 for supporting details.
Table C-3A: CONTROL COSTS FOR LIGHT-DUTY TRUCKS (LDT1)
(millions of 1986 dollars)
,i ne
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
7 Total Annual ized Cost
856
928
1 ,004
1 ,042
880
948
998
1 ,059
1 ,099
1 ,133
1 ,169
1 ,203
1 ,230
1 ,262
1 ,297
8 Ex i st i ng Regs.
856
928
996
1 ,011
842
903
960
1 ,014
1 ,045
1 ,070
1 ,097
1 ,122
1 ,147
1 ,176
1 ,209
9 New Regs.
NA
NA
7
31
38
46
37
46
54
63
71
81
83
85
88
10 Cap i ta1 Expend .
666
706
779
780
786
811
837
864
892
920
949
980
1 ,011
1 ,044
1 ,077
11 Ex i st i ng Regs.
666
706
727
728
734
758
782
807
833
859
887
915
944
975
1 ,006
12 New Regs.
NA
NA
51
51
52
53
55
57
59
61
63
65
67
69
71
13 Operating Cost
291
309
320
295
56
46
18
7
0
(7)
(11)
(16)
(22)
(27)
(34)
14 Exi st i ng Regs.
291
309
320
278
40
30
18
7
0
(7)
(11)
(16)
(22)
(27)
(34)
15 Ma i nt. Exp.
53
51
43
35
28
21
15
8
1
(5)
(10)
(16)
(22)
(27)
(34)
16 Fuel Price Penalty
204
230
255
225
0
0
0
0
0
0
0
0
0
0
0
17 Fuel Economy Penalty
33
28
23
18
12
9
4
(1)
(1)
(2)
(1)
0
0
0
0
18 New Regs.
NA
NA
NA
16
16
16
* *
* *
* *
* *
* *
* *
* *
* *
* *
LDT1 are trucks with a gross vehicle weight between 0 and 6,000 pounds.
All footnotes correspond to the footnotes for Table C-2. Refer to Table C-l 1 for supporting details.
November 1990
-------
C-12 Environmental Investments
Table C-4: CONTROL COSTS FOR LIGHT-DUTY TRUCKS (LDT2)
(millions of 1986 dollars)
ne
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1 Annua 1 i zed Cost
204
378
357
335
357
330
305
321
347
358
396
428
522
610
727
2 Cap i ta1 Expend.
13
30
27
13
1 7
22
26
473
291
249
290
312
507
562
596
3 Operating Cost
203
372
347
323
343
313
284
233
218
194
193
185
211
220
256
4 Ma int. Exp.
11
16
20
25
30
40
47
(11)
(21)
(29)
(27)
(34)
(13)
(17)
2
5 Fuel Price Penalty
0
0
0
0
0
0
0
39
62
71
89
106
128
155
184
6 Fuel Economy Penalty
192
356
327
298
313
273
237
205
1 77
152
131
113
96
82
69
All footnotes correspond to the footnotes for Table C-2. Refer to Table C-l 2 for supporting details.
Table C-4A: CONTROL COSTS FOR LIGHT-DUTY TRUCKS (LDT2)
(millions of 1986 dollars)
,i ne
Year
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
7 Tota1 Annua 1 i zed
Cost
727
822
918
916
734
780
809
851
878
901
922
946
968
996
1 ,027
8 Ex i st i ng Regs.
727
822
913
893
706
748
787
825
847
865
880
899
920
946
975
9 New Regs.
NA
NA
4
23
27
32
22
27
31
37
42
47
49
50
52
10 Cap i ta1 Expend .
596
614
655
669
662
705
728
751
775
800
826
852
879
907
936
11 Ex i st i ng Regs.
596
614
626
639
632
673
695
718
741
764
789
814
840
867
894
12 New Regs.
NA
NA
29
30
30
32
33
34
35
36
37
38
39
41
42
13 Operating Cost
256
267
273
244
9
(10)
(43)
(63)
(74)
(85)
(97)
(106)
(115)
(121)
(129)
14 Exi st i ng Regs.
256
267
273
229
(6)
(24)
(43)
(63)
(74)
(85)
(97)
(106)
(115)
(121)
(129)
15 Ma i nt. Exp.
2
(5)
(16)
(27)
(37)
(47)
(57)
(67)
(77)
(87)
(97)
(106)
(115)
(121)
(129)
16 Fuel Price Pena
Ity
184
213
240
216
0
0
0
0
0
0
0
0
0
0
0
17 Fuel Economy Penalty
69
59
49
40
31
23
15
5
4
2
0
0
0
0
0
18 New Regs.
NA
NA
NA
15
15
15
* *
* *
* *
* *
* *
* *
* *
* *
* *
LDT2 consists of trucks with a gross vehicle weight between 6,000 and 8,500 pounds.
All footnotes correspond to the footnotes for Table C-2A. Refer to Table C-l 2A for supporting details.
November 1990
-------
Appendix C—Mobile Source Emissons Control Costs C-13
Table C-5: CONTROL COSTS FOR HEAVY-DUTY GASOLINE ENGINES (HDGE1)
(millions of 1986 dollars)
ne
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1 Annua 1 i zed Cost
2
3
9
13
22
33
47
63
70
73
72
73
76
78
83
2 Cap i ta1 Expend.
5
6
12
10
14
16
18
26
16
14
12
13
1 7
35
39
3 Operating Cost
1
2
6
8
16
24
36
48
52
53
52
52
53
53
54
4 Ma int. Exp.
1
2
2
2
3
3
4
4
4
4
4
4
4
0
1
5 Fuel Price Penalty
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6 Fuel Economy Penalty
0
0
3
6
13
21
32
44
48
50
48
48
50
52
53
All footnotes correspond to the footnotes for Table C-2. Refer to Table C-l 3 for supporting details.
Table C-5A: CONTROL COSTS FOR HEAVY-DUTY GASOLINE ENGINES (HDGE1)
(millions of 1986 dollars)
,i ne
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
7 Total Annual ized Cost
83
93
104
112
99
92
87
84
83
81
80
77
75
73
72
8 Ex i st i ng Regs.
83
93
104
110
97
91
86
83
82
80
79
75
73
72
71
9 New Regs.
NA
NA
0
2
2
2
1
1
1
1
1
1
1
1
1
10 Cap i ta1 Expend .
39
61
63
65
65
68
69
71
74
76
78
81
83
86
88
11 Ex i st i ng Regs.
39
61
62
65
65
67
68
71
73
75
77
80
82
84
87
12 New Regs.
NA
NA
1
1
1
1
1
1
1
1
1
1
1
1
1
13 Operating Cost
54
58
62
64
44
30
16
6
(4)
(12)
(18)
(24)
(29)
(33)
(37)
14 Exi st i ng Regs.
54
58
62
63
43
29
16
6
(4)
(12)
(18)
(24)
(29)
(33)
(37)
15 Ma i nt. Exp.
1
(3)
(8)
(12)
(16)
(19)
(22)
(25)
(28)
(31)
(33)
(36)
(38)
(40)
(42)
16 Fuel Price Penalty
0
7
15
18
0
0
0
0
0
0
0
0
0
0
0
17 Fuel Economy Penalty
53
54
55
57
59
48
39
31
24
19
15
12
9
7
5
18 New Regs.
NA
NA
NA
1
1
1
* *
* *
* *
* *
* *
* *
* *
* *
* *
HDGE1 consists of trucks with a gross vehicle weight between 8,500 and 10,000 pounds.
All footnotes correspond to the footnotes for Table C-2A. Refer to Table C-l 3A for supporting details.
November 1990
-------
C-14 Environmental Investments
Table C-6: CONTROL COSTS FOR HEAVY-DUTY GASOLINE ENGINES (HDGE2)
(millions of 1986 dollars)
Li ne
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1 Annua 1 i zed Cost
6
9
37
57
81
102
128
149
160
159
151
146
144
141
142
2 Cap i ta1 Expend.
14
14
30
24
20
20
24
31
20
12
10
11
14
30
33
3 Operating Cost
4
5
29
46
66
85
107
124
133
130
122
117
117
114
114
4 Ma int. Exp.
4
5
6
6
7
7
7
7
7
7
6
6
5
0
1
5 Fuel Price Penalty
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
6 Fuel Economy Penalty
0
0
23
39
60
78
100
116
126
123
116
112
112
114
113
Footnotes correspond to the footnotes for Table C-2, with the following exceptions:
5. Data not available to compute a fuel price penalty for this vehicle class.
Refer to Table C-l 4 for supporting details.
November 1990
-------
Appendix C—Mobile Source Emissons Control Costs C-15
Table C-6A: CONTROL COSTS FOR HEAVY-DUTY GASOLINE ENGINES (HDGE2)
(millions of 1986 dollars)
Li ne
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
7 Total Annual ized Cost
142
143
144
147
151
132
115
103
93
85
49
49
49
50
50
8 Ex i st i ng Regs.
142
143
144
145
149
130
114
102
92
84
48
48
48
48
49
9 New Regs.
NA
NA
0
2
2
2
1
1
1
1
1
1
1
1
1
10 Cap i ta1 Expend .
33
48
50
52
52
53
55
56
58
60
62
63
65
67
69
11 Ex i st i ng Regs.
33
48
49
51
51
52
54
55
57
59
61
62
64
66
68
12 New Regs.
NA
NA
1
1
1
1
1
1
1
1
1
1
1
1
1
13 Operating Cost
114
110
107
108
107
82
59
40
24
12
(28)
(30)
(32)
(34)
(36)
14 Exi st i ng Regs.
114
110
107
106
106
81
59
40
24
12
(28)
(30)
(32)
(34)
(36)
15 Ma i nt. Exp.
1
(3)
(7)
(10)
(13)
(16)
(19)
(21)
(24)
(26)
(28)
(30)
(32)
(34)
(36)
16 Fuel Price Penalty
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
17 Fuel Economy Penalty
113
113
114
116
119
97
78
61
48
38
0
0
0
0
0
18 New Regs.
NA
NA
NA
1
1
1
* *
* *
* *
* *
* *
* *
* *
* *
* *
HDGE2 consists of gasoline powered trucks with a gross vehicle weight greater than 10,000 pounds.
Footnotes correspond to the footnotes for Table C-2A, with the following exceptions:
16. Data not available to compute a fuel price penalty for this vehicle class.
Refer to Table C-l 4A for supporting details.
November 1990
-------
C-16 Environmental Investments
Table C-7: CONTROL COSTS FOR HEAVY-DUTY DIESEL ENGINES (HDDE)
(millions of 1986 dollars)
Li ne
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1 Annua 1 i zed Cost
0
0
0
0
0
0
0
7
12
1 7
21
26
32
40
48
2 Cap i ta1 Expend.
0
0
0
0
0
0
0
49
36
35
29
34
43
52
58
3 Operating Cost
4 Ma int. Exp.
5 Fuel Price Penalty
0
0
NA
0
0
NA
0
0
NA
0
0
NA
0
0
NA
0
0
NA
0
0
NA
0
0
NA
0
0
NA
0
0
NA
0
0
NA
0
0
NA
0
0
NA
0
0
NA
0
0
NA
6 Fuel Economy Penalty 000000000000000
Footnotes correspond to the footnotes for Table C-2, with the following exceptions:
5. Not applicable for diesel engines.
Table C-7A: CONTROL COSTS FOR HEAVY-DUTY DIESEL ENGINES (HDDE)
(millions of 1986 dollars)
,i ne Year 1!
986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
7 Total Annual ized Cost
48
56
67
72
78
332
589
557
525
488
487
487
483
483
483
8 Ex i st i ng Regs.
48
56
65
68
72
76
82
87
91
94
97
100
102
105
108
9 New Regs.
NA
NA
2
4
6
256
508
470
434
394
390
387
381
378
374
10 Cap i ta1 Expend .
58
61
77
79
79
127
131
135
163
168
1 73
1 79
184
189
195
11 Ex i st i ng kegs.
58
61
63
65
65
67
69
71
73
75
77
80
82
84
87
12 New Regs.
NA
NA
14
14
14
60
62
64
90
93
96
99
102
105
108
13 Operati ng Cost
0
0
0
0
0
241
484
437
388
335
318
301
282
266
249
14 tx i st i ng Regs.
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
15 Ma int. Exp.
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
16 Fuel Price Penalty
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
17 Fuel Economy Penalty
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
18 New Regs.
NA
NA
NA
NA
0
241
484
437
388
335
318
301
282
266
249
HDDE consists of diesel powered trucks with a gross vehicle weight greater than 10,000 pounds.
Footnotes correspond to the footnotes for Table C-2A, with the following exceptions:
16. Not applicable for diesel engines.
18. HDDE operating costs are affected by two new regulations (see Table C-l 5A).
November 1990
-------
Appendix C—Mobile Source Emissons Control Costs C-17
Table C-8: CONTROL COSTS FOR MOTORCYCLES
(millions of 1986 dollars)
ne
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1 Annua 1 i zed Cost
(5)
(7)
(10)
(12)
(14)
(18)
(17)
(21)
(12)
10
29
42
50
62
70
2 Cap i ta1 Expend.
0
0
0
0
0
0
75
75
129
122
105
66
62
89
68
3 Operating Cost
(5)
(7)
(10)
(12)
(14)
(18)
(28)
(42)
(52)
(47)
(42)
(39)
(39)
(41)
(42)
4 Ma int. Exp.
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
5 Fuel Price Penalty
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
6 Fuel Economy Penalty
(5)
(7)
(10)
(12)
(14)
(18)
(28)
(42)
(52)
(47)
(42)
(39)
(39)
(41)
(42)
Footnotes correspond to the footnotes for Table C-2, with the following exceptions:
4,5. Not applicable for motorcycles.
Table C-8A: CONTROL COSTS FOR MOTORCYCLES
(millions of 1986 dollars)
,i ne
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
7 Total Annual ized Cost
70
75
69
63
45
39
29
26
23
1 7
14
14
14
14
15
8 Ex i st i ng Regs.
70
75
69
63
45
39
29
26
23
1 7
14
14
14
14
15
9 New Regs.
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
10 Cap i ta1 Expend .
68
46
47
49
51
53
55
56
59
61
63
65
67
70
72
11 Ex i st i ng Regs.
68
46
47
49
51
53
55
56
59
61
63
65
67
70
72
12 New Regs.
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
13 Operating Cost
(42)
(44)
(46)
(48)
(55)
(51)
(53)
(56)
(58)
(60)
(63)
(65)
(68)
(70)
(73)
14 Exi st i ng Regs.
(42)
(44)
(46)
(48)
(55)
(51)
(53)
(56)
(58)
(60)
(63)
(65)
(68)
(70)
(73)
15 Ma int. Exp.
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
16 Fuel Price Penalty
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
17 Fuel Economy Penalty
(42)
(44)
(46)
(48)
(55)
(51)
(53)
(56)
(58)
(60)
(63)
(65)
(68)
(70)
(73)
18 New Regs.
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Footnotes correspond to the footnotes for Table C-2A, with the following exceptions:
9,12,15,16,18. Not applicable for motorcycles.
November 1990
-------
C-18 Environmental Investments
Table C-9: CONTROL COSTS FOR AIRCRAFT
(millions of 1986 dollars)
Li ne
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1 Annua 1 i zed Cost
0
0
0
1
3
6
8
9
10
11
14
22
21
19
1 7
2 Cap i ta1 Expend.
0
0
0
6
13
21
15
6
7
9
35
62
9
8
10
3 Operating Cost
0
0
0
0
0
0
0
0
0
CO)
(2)
(3)
(5)
(7)
(9)
4 Ma int. Exp.
0
0
0
0
0
0
0
0
0
0
1
2
2
3
4
5 Fuel Price Penalty
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
6 Fuel Economy Penalty
0
0
0
0
0
0
0
0
0
CD
(3)
(5)
(7)
(10)
(13)
Footnotes correspond to the footnotes for Table C-2, with the following exceptions:
5. Not applicable for aircraft.
Table C-9A: CONTROL COSTS FOR AIRCRAFT
(millions of 1986 dollars)
Line Year
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
7 Total Annual ized Cost
1 7
14
11
10
9
7
2
(7)
(8)
(10)
(11)
(13)
(15)
(18)
(20)
8 Ex i st i ng Regs.
1 7
14
11
10
9
7
2
(7)
(8)
(10)
(11)
(13)
(15)
(18)
(20)
9 New Regs.
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
10 Cap i ta1 Expend.
10
12
13
15
11
11
7
8
11
12
11
13
13
15
13
11 Ex i st i ng Regs.
10
12
13
15
11
11
7
8
11
12
11
13
13
15
13
12 New Regs.
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
13 Operating Cost
(9)
(11)
(13)
(16)
(17)
(19)
(20)
(21)
(23)
(25)
(27)
(29)
(31)
(34)
(36)
14 Exi st i ng Regs.
(9)
(11)
(13)
(16)
(17)
(19)
(20)
(21)
(23)
(25)
(27)
(29)
(31)
(34)
(36)
15 Ma int. Exp.
4
5
6
8
8
9
10
10
11
12
13
14
15
16
1 7
16 Fuel Price Penalty
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
17 Fuel Economy Penalty
(13)
(16)
(20)
(23)
(26)
(28)
(30)
(32)
(34)
(37)
(40)
(43)
(46)
(50)
(53)
18 New Regs.
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Footnotes correspond to the footnotes for Table C-2A, with the following exceptions:
9,12,16,18. Not applicable for aircraft.
November 1990
-------
Appendix C—Mobile Source Emissons Control Costs C-19
Table C-10: LIGHT-DUTY VEHICLE CONTROL COSTS -- SUPPORTING DETAIL
(all dollars are millions of 1986)
Li ne
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1 Capital Expend, per Veh.
19.1
38.6
38.6
283 .0
283 .0
283 .0
283 .0
283 .0
331 .1
408.3
410.7
440.1
474.6
474.6
474.6
2 Ma int. Cost per Vehicle
4 . 7
4 . 7
4 . 7
-13.3
-13.3
-13.3
-13.3
-13.3
-13.3
-13.3
-13.3
-13.3
-13.3
-13.3
-13.3
3 Fuel Econ. Penalty/Veh. Mile
¦0.003
0.004
0.000
0.000
-0.001
0.000
0.000
0.000
0.000
-0.002
-0.002
-0.002
-0.002
-0.002
-0.001
4 1 nspection/Maint. Programs
0
0
0
11
11
42
42
42
42
54
135
162
513
571
834
5 Existing
0
0
0
11
11
42
42
42
42
54
135
162
513
571
834
6 New
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
7 Product i on (10E6)
11
11
9
9
10
11
11
11
9
9
8
9
10
11
11
8 Total Vehicles in Use(10E6)
30
41
50
58
66
75
83
88
91
93
93
93
95
97
99
9 Unl. Mi les Driven/F1t(10E6)
0
0
0
90844
196874
308713
415492
507265
581026
642566
687872
735275
787928
838928
884782
Table C-10A: LIGHT-DUTY VEHICLE CONTROL COSTS - SUPPORTING DETAIL
(all dollars are millions of 1986)
ne 1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
1 Capital Expend, per Veh. 475
475
475
475
475
475
475
475
475
475
475
475
475
475
475
2 Maint. Cost per Vehicle -13.3
-13.3
-13.3
-13.3
-13.3
-13.3
-13.3
-13.3
-13.3
-13.3
-13.3
-13.3
-13.3
-13.3
-13.3
3 Fuel Econ. Penalty/Veh. Mile -0.0
-0.0
-0.0
-0.0
-0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
4 1 nspection/Maint. Programs 834
877
877
877
877
877
877
877
877
877
877
877
877
877
877
5 Existing 834
877
877
877
877
877
877
877
877
877
877
877
877
877
877
6 New 0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
7 Product i on (10E6) 11
11
11
10
10
11
11
11
11
12
12
12
12
12
12
8 Total Vehicles in Use(10E6) 99
100
101
102
103
104
105
106
107
108
109
110
112
113
114
9 Unl. Mi les Driven/F1t(10E6)884782
915164
943105
958231
972766
989285 1C
CO
CO
-^r
O
1020747
1036167
1051124
1065277 1C
)80328 1C
)95048
1109349
1123098
Footnotes to Tables C-l 0 and C-l OA by Line
1. Sum of the costs for vehicle pollution control devices such as: catalysts (Ref. 4), air pumps (Ref. 6), exhaust-gas recirculation units (Ref. 10), high altitude controls (Ref. 4), and evaporative
emissions canisters (Ref. 4). These control devices were phased in at various points in time. The timing was due to 1) new regulatory requirements and/or 2) technological advancements
in control devices.
November 1990
-------
C-20
Environmental Investments
2. We assumed a pre-1975 baseline maintenance expense of $5.00 per vehicle per year to cover maintenance expenses prior to the existence of inspection/maintenance programs and also to
cover those vehicle maintenance expenditures for vehicles which are not in areas with established inspection/maintenance programs. Beginning in 1975, the maintenance benefits from the
use of catalytic converters (Ref. 4)was added to the baseline cost.
3. Calculated as the difference in fuel efficiency (in terms of miles per gallon) between a vehicle equipped with emissions controls and one that is not (Ref. 5), multiplied by the price of gasoline
(Ref. 5,9, Table 9.4).
4. Sum of lines 5 and 6. Millions of 1986 dollars.
5. These costs are due to inspection/maintenance programs implemented prior to 1988. The cost includes a component for the inspection program fee plus a weighted average cost of repair
for those vehicles requiring repair. This was computed by dividing population (Ref. 14) for areas with programs by the population per vehicle (Ref. 2). This equals the number of vehicles
affected by the programs, which was then multiplied by a per vehicle cost (Ref.l 5) to derive total cost. Millions of 1986 dollars.
6. Same process as footnote 5 with an incremental cost per vehicle (Ref. 15) to account for program enhancement expected after 1988. Millions of 1986 dollars.
7. Ref. 5,7 App. B (pp.B5-B18).
8. Calculated as vehicle production (line 7) times the vehicle survival rate per age class (Ref.2, p.26) corresponding to that year and age. Each year accumulates figures from up to the previous
twenty years.
9. Calculated as production (line 12) times the percentage of each model year using unleaded gasoline (Ref.5) times the vehicle survival rate (Ref.2, p.26). Each year's figure includes a running
total for previous years' surviving vehicles.
November 1990
-------
Appendix C—Mobile Source Emissons Control Costs C-21
Table C-ll: LDT1 CONTROL COSTS -- SUPPORTING DETAIL
(all dollars are millions of 1986)
Li ne
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1 Capital Expend, per Veh.
20
44
44
268
268
268
268
284
284
332
332
354
480
480
480
2 Ma int. Cost per Vehicle
5
5
5
-5
-5
-5
-5
-6
-6
-8
-8
-8
-8
-8
-8
3 Fuel Econ. Penalty/Veh. Mi .
0.003
0.004
0.000
0.002
-0.001
-0.001
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
4 1 nspection/Maint. Programs
0
0
0
2
2
6
6
6
6
8
20
24
76
84
123
5 Existing
0
0
0
2
2
6
6
6
6
8
20
24
76
84
123
6 New
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
7 Product i on (10E6)
1 .5
1 .8
1 .5
1 .1
1 .3
1 .3
1 .3
1 .2
0.9
CO
o
0.9
1 .0
1 .3
1 .4
1 .5
8 Total Vehicles in Use(10E6)
3.6
5.2
6.5
7.3
8.2
9.1
9.9
10.6
10.9
11.1
11.4
11 .7
12.3
12.9
13.5
9 Unleaded Mi les Driven/Fleet
0
0
0
15512
34794
52862
68868
81398
87016
90109
93837
98339
105286
1 1 2771
120059
All footnotes correspond to the footnotes for Table C-l 0.
Table C-ll A: LDT1 CONTROL COSTS -- SUPPORTING DETAIL
(all dollars are millions of 1986)
Li ne
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
1 Capital Expend, per Veh.
480
480
480
480
480
480
480
480
480
480
480
480
480
480
480
2 Ma int. Cost per Vehicle
-8
-8
-8
-8
-8
-8
-8
-8
-8
-8
-8
-8
-8
-8
-8
3 Fuel Econ. Penalty/Veh. Mi .
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
4 1 nspection/Maint. Programs
123
129
129
129
129
129
129
129
129
129
129
129
129
129
129
5 Existing
123
129
129
129
129
129
129
129
129
129
129
129
129
129
129
6 New
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
7 Production(10E6)
1 .5
1 .6
1 .6
1 .6
1 .6
1 . 7
1 . 7
1 .8
1 .9
1 .9
2.0
2.0
2.1
2.2
2.2
8 Tot. Vehicles in Use/Yr(10E
13.5
14.2
14.9
15.5
15.8
16.2
16.6
1 7.0
17.4
18.0
18.5
19.1
19.8
20.4
21 .2
9 Unleaded Mi . Driven/Fleet
120059
126874
132594
136730
139705
0
0
0
0
0
0
0
0
0
0
Other: Future Regulations:
10 NOx (per Veh.)
NA
NA
31 . 74
31 . 74
31 . 74
31 . 74
31 . 74
31 . 74
31 . 74
31 . 74
31 . 74
31 . 74
31 . 74
31 . 74
31 . 74
All footnotes correspond to the footnotes for Table C-10, wth the following exceptions:
10. Reference 12. See footnotes Table C-15A.
November 1990
-------
C-22 Environmental Investments
Table C-12: LDT2 CONTROL COSTS -- SUPPORTING DETAIL
(all dollars are millions of 1986)
ne
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1 Capital Expend, per Veh.
14
25
25
14
14
14
14
330
330
330
330
332
450
450
450
2 Ma int. Cost per Vehicle
5
5
5
5
5
5
5
-12
-12
-12
-12
-12
-12
-12
-12
3 Fuel Econ. Penalty/Veh. Mi .
0.006
0.009
0.001
0.001
0.002
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
4 1 nspection/Maint. Programs
0
0
0
2
2
6
6
6
6
6
1 7
18
50
58
89
5 Existing
0
0
0
2
2
6
6
6
6
6
1 7
18
50
58
89
6 New
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
7 Product i on (10E6)
1 .0
1 .2
1 .1
0.9
1 .3
1 .6
1 .9
1 .4
0.9
0.8
0.9
0.9
1 .1
1 .2
1 .3
8 Total Vehicles in Use(10E6)
2.3
3.4
4.3
5.1
6.1
7.3
8.8
9.8
10.2
10.3
10.6
10.9
11.4
11.9
12.5
9 Unleaded Mi les Driven/Fleet
0
0
0
0
0
0
0
25544
38516
47285
56587
65346
75444
85519
94943
All footnotes correspond to the footnotes for Table C-l 0.
Table C-12A: LDT2 CONTROL COSTS -- SUPPORTING DETAIL
(all dollars are millions of 1986)
ne
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1
999
2000
1 Capital Expend, per Veh.
450
450
450
450
450
450
450
450
450
450
450
450
450
450
450
2 Ma int. Cost per Vehicle
-12
-12
-12
-12
-12
-12
-12
-12
-12
-12
-12
-12
-12
-12
-12
3 Fuel Econ. Penalty/Veh. Mi .
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.
000
0.000
4 1 nspection/Maint. Programs
89
93
93
93
93
93
93
93
93
93
93
93
93
93
93
5 Existing
89
93
93
93
93
93
93
93
93
93
93
93
93
93
93
6 New
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
7 Product i on (10E6)
1 .3
1 .4
1 .4
1 .4
1 .4
1 .5
1 .5
1 .6
1 .6
1 . 7
1 .8
1 .8
1 .9
1 .9
2.0
8 Total Vehicles in Use/Yr(10E
12.5
13.1
13.6
14.1
14.5
14.9
15.2
15.6
16.0
16.4
16.9
17.2
17.6
1
8.2
18.8
9 Unleaded Mi . Driven/Fleet
94943
102942
109553
114856
118570
0
0
0
0
0
0
0
0
0
0
Other: Future Regulations:
0 NOx (per Veh.)
NA
NA
21 .06
21 .06
21 .06
21 .06
21 .06
21 .06
21 .06
21 .06
21 .06
21 .06
21 .06
21
.06
21 .06
All footnotes correspond to the footnotes for Table C-l 0, with the following exceptions:
10. Reference 12. See footnotes Table C-15A.
November 1990
-------
Appendix C—Mobile Source Emissons Control Costs
Table C-13: HDGE1 CONTROL COSTS -- SUPPORTING DETAIL
(all dollars are millions of 1986)
C-23
i ne
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1 Capital Expend, per Veh.
46
46
103
103
103
103
103
186
186
186
186
186
186
360
360
2 Ma int. Cost per Vehicle
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
3 Fuel Econ. Penalty/Veh. Mi .
0.000
0.000
0.002
0.002
0.003
0.003
0.004
0.006
0.007
0.006
0.006
0.006
0.006
0.006
0.005
4 1 nspection/Maint. Programs
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
5 Existing
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
6 New
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
7 Product i on (10E6)
0.10
0.13
0.11
0.10
0.13
0.15
0.17
0.14
0.09
0.08
0.06
0.07
0.09
0.10
0.11
8 Total Vehicles in Use(10E6)
0.24
0.35
0.43
0.49
0.58
0.68
0.79
0.86
0.86
0.85
0.82
0.80
0.81
0.82
0.83
9 Unleaded Mi les Driven/Fleet
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
All footnotes correspond to the footnotes for Table C-l 0.
Table C-13 A: HDGE1 CONTROL COSTS -- SUPPORTING DETAIL
(all dollars are millions of 1986)
Li ne
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
1 Capital Expend, per Veh.
360
534
534
534
534
534
534
534
534
534
534
534
534
534
534
2 Ma int. Cost per Vehicle
5
-38
-38
-38
-38
-38
-38
-38
-38
-38
-38
-38
-38
-38
-38
3 Fuel Econ. Penalty/Veh. Mi. C
). 005
0.005
0.005
0.005
0.005
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
4 1 nspection/Maint. Programs
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
5 Existing
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
6 New
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
7 Product i on (10E6)
0.11
0.11
0.12
0.12
0.12
0.13
0.13
0.13
0.14
0.14
0.14
0.15
0.15
0.16
0.16
8 Total Vehicles in Use/Yr(10E
0.83
0.86
0.88
0.90
0.91
0.93
0.95
0.97
0.99
1 .02
1 .04
1 .07
1 .10
1.13
1 .17
9 Unleaded Mi les Driven/Fleet
0
2276
4294
6067
7513
0
0
0
0
0
0
0
0
0
0
Other: Future Regulations:
10 NOx (per Veh.)
NA
NA
7.20
7.20
7.20
7.20
7.20
7.20
7.20
7.20
7.20
7.20
7.20
7.20
7.20
All footnotes correspond to the footnotes for Table C-l 0, with the following exceptions:
10. Reference 12. See footnotes Table C-15A.
November 1990
-------
C-24
Environmental Investments
Table C-14: HDGE2 CONTROL COSTS -- SUPPORTING DETAIL
(all dollars are millions of 1986)
ne
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1 Capital Expend, per Veh.
46
46
103
103
103
103
103
186
186
186
186
186
186
360
360
2 Ma int. Cost per Vehicle
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
3 Fuel Econ. Penalty/Veh. Mi .
0.000
0.000
0.004
0.004
0.007
0.007
0.007
0.010
0.014
0.015
0.015
0.014
0.014
0.014
0.011
4 1 nspection/Maint. Programs
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
5 Existing
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
6 New
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
7 Production(10E6) 0.31 0.31 0.29 0.23 0.20 0.20 0.23 0.17 0.11 0.06 0.05 0.06 0.08
8 Total Vehicles in Use(10E6) 0.76 1.01 1.22 1.34 1.41 1.47 1.55 1.56 1.51 1.41 1.31 1.22 1.15
9 Unleaded Miles Driven/Fleet NA NA NA NA NA NA NA NA NA NA NA NA NA
NA
1 .05
NA
All footnotes correspond to the footnotes for Table C-l 0.
Table C-14A: HDGE2 CONTROL COSTS -- SUPPORTING DETAIL
(all dollars are millions of 1986)
ne
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
1 Capital Expend, per Veh.
360
498
498
498
498
498
498
498
498
498
498
498
498
498
498
2 Ma int. Cost per Vehicle
5
-38
-38
-38
-38
-38
-38
-38
-38
-38
-38
-38
-38
-38
-38
3 Fuel Econ. Penalty/Veh. Mi .
0.011
0.011
0.011
0.011
0.012
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
4 1 nspection/Maint. Programs
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
5 Existing
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
6 New
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
7 Product i on (10E6)
0.09
0.10
0.10
0.10
0.10
0.11
0.11
0.11
0.12
0.12
0.12
0.13
0.13
0.13
0.14
8 Total Vehicles in Use(10E6)
1 .05
1 .01
0.98
0.95
0.92
0.90
0.88
0.87
0.87
0.88
0.89
0.91
0.93
0.96
0.99
9 Unleaded Mi les Driven/Fleet
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Other: Future Regulations:
0 NOx (per Veh.)
NA
NA
7.20
7.20
7.20
7.20
7.20
7.20
7.20
7.20
7.20
7.20
7.20
7.20
7.20
All footnotes correspond to the footnotes for Table C-l 0, with the following exceptions:
10. Reference 12. See footnotes Table C-l 5A.
November 1990
-------
Appendix C—Mobile Source Emissons Control Costs C-25
Table C-15: CAPITAL CONTROL COSTS DUE TO NEW REGULATIONS
(millions of 1986 dollars)
Reg. Veh. Class 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
NOx + PM Standard
LDT1
51
51
52
53
55
57
59
61
63
65
67
69
71
LDT2
29
30
30
32
33
34
35
36
37
38
39
41
42
HDGE1
1
1
1
1
1
1
1
1
1
1
1
1
1
HDGE2
1
1
1
1
1
1
1
1
1
1
1
1
1
HDDE
14
14
14
60
62
64
90
93
96
99
102
105
108
Total
96
97
97
147
151
156
186
191
197
203
210
216
223
All per vehicle costs were obtained from the appropriate RIA (Ref. 12) and multiplied by production estimates (Tables C-10A—C-14A).
Table C-15A: OPERATING CONTROL COSTS DUE TO NEW REGULATIONS
(millions of 1986 dollars)
Reg. Veh. C1 ass
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Fue1 Vo1 at i 1 i ty
134
134
134
D i ese1 Fue1 Qua 1 i ty
HDDE
NOx + PM Standard
HDDE
241
225
259
1 73
265
117
272
56
279
31
287
6
295
-22
305
-49
314
-76
325
Tota1 : A11 Regs.
134
134
375
484
438
389
335
318
301
283
265
249
Fuel Volatility: Notice of Final Rulemaking (Ref. 17)
Diesel Fuel Quality: Draft Regulatory Impact Analysis (Ref. 16)
NOx + PM Standard: Regulatory Impact Analysis (Ref. 12).
November 1990
-------
C-26 Environmental Investments
Table C-16: CAPITAL CONTROL COSTS BY POLLUTANT
(millions of 1986 dollars)
Po11utant
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
NOx
91
92
92
106
110
113
117
120
124
128
132
136
141
PM
5
5
5
40
41
43
69
71
73
75
77
80
82
Total
96
97
97
147
151
156
186
191
197
203
210
216
223
Costs attributable to controlling NOx and PM are associated with one regulation, the NOx and PM truck standard. See Table C-l 5.
Table C-16A: OPERATING CONTROL COSTS BY POLLUTANT
(millions of 1986 dollars)
Po11utant
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
HC
PM
0
134
0
134
0
134
241
484
438
389
335
318
301
283
265
249
Total
0
134
134
375
484
438
389
335
318
301
283
265
249
All costs are taken directly from Table C-15A.
Below is a list of new regulations and the pollutants they are primarily designed to control:
Fuel Volatility — hydrocarbons
Diesel Sulfur Content — particulate matter
NOx + PM Truck Standards — oxides of nitrogen and particulate matter
November 1990
-------
Appendix C—Mobile Source Emissons Control Costs C-27
Table C-17: CONTROL COSTS DUE TO CAA AMENDMENTS
(millions of 1986 dollars)
,i ne
1993
1994
1995
1996
1997
1998
1999
2000
1 Reid Vapor Pressure 1 1
222
228
232
236
240
243
247
251
2 Evaporative/Running Losses
57
58
58
59
59
60
60
61
3 Tailpipe/Useful Life
436
440
444
448
452
456
460
464
4 Refuel i ng: Stage 11
108
112
116
120
124
127
131
135
5 A1ternative Fuels
145
145
145
145
145
0
6 Basic 1nspect./Maintenance
65
66
67
68
69
70
71
72
7 Enhanced 1nspect./Ma i nt.
69
70
71
72
73
75
76
77
8 Oxides of Nitrogen (NOx)
369
371
372
374
375
377
378
380
9 A i r Tox i cs
700
1400
2100
2800
2800
2800
10 Total
1326
1345
2205
2922
3637
4353
4368
4240
Footnotes to Table C-17 by Line
Except for line 9 (Ref. 20), all costs were derived from the 1995 and 2005 point estimates given in Reference 18. Interpolation was used to fill in intervening years.
For simplicity, all costs were assumed to begin in 1993 and are treated as operating costs. These costs are wo? divided between the various vehicle classes and, therefore,
they are only reflected in Table C-l A (Total Costs for All Vehicle Classes).
Following is a brief discussion of each of the nine line items. This discussion is only intended to highlight some of the more significant provisions related to each line
entry. Reference 19 (Title II of H.R.3030) applies to each line entry (except where noted otherwise) and should be consulted for more detail.
1. Reid Vapor Pressure II - requires the Reid vapor pressure of gasoline not to exceed 9.0 pounds per square inch (Sec. 214).
2. Evaporative/Running losses - requires the greatest degree of emission reduction achievable with respect to evaporative emissions of hydrocarbons from all gasoline-
fueled motor vehicles (1) during operation and (2) over two or more days of nonuse, during ozone prone summertime conditions (Sec. 205).
3. Tailpipe/Useful Life - consists of a number of regulatory provisions. Tightened tailpipe standards is a general term consisting of an array of more stringent standards
for emissions of hydrocarbons, carbon monoxide, and oxides of nitrogen for light-duty vehicles and light-duly trucks. For light-duty vehicles, emissions of
hydrocarbons must be reduced incrementally so that by the 1995 model year emissions are not exceeding 0.25 grams per vehicle mile (gpm). Emissions of carbon
monoxide from 1981 and later model years may not exceed 3.4 gpm. And emissions of oxides of nitrogen will be gradually reduced from 1.0 gpm to 0.7 gpm by
the 1995 model year (Sec. 202). Light-duty trucks must meet hydrocarbon emissions limits of 0.41 gpm and 0.50 gpm (depending on the loaded vehicle weight)
by the 1996 model year. Similarly, carbon monoxide standards of 4.20 gpm and 5.50 gpm (also depending on vehicle weight) must be met by the 1996 model year
November 1990
-------
C-28
Environmental Investments
(Sec. 203). Useful life refers to the initiative to require the manufacturer's of pollution control equipment to increase the useful life of such euipment from 50,000
to 100,000 miles.
4. Refueling: Stage II - requires the owners or operators of all gasoline dispensing systems in nonattainment areas designated as "moderate" to install a system for
gasoline vapor recovery during the fueling of motor vehicles (Title I, Sec. 103). Usually a vapor trapping nozzle is attached to a fuel dispensor which returns the
recovered vapors to the fueling stations gasoline storage tanks.
5. Alternative Fuels - is the general term for the program that includes the manufacturing of "clean-fuel" vehicles and the supplying of clean fuel for those vehicles.
The costs figures in line 5 combine the costs for the fuel program and the vehicle program. While the term "clean alternative fuels" refers to any power source with
low emissions comparable to gasoline, the costs shown here assume that methanol is the fuel of choice. Currently, the scope of the program is to include those
nonattainment areas with a 1988 ozone design value at or above 0.18 parts per million and having a 1980 population of two hundred and fifty thousand or more.
Additionally, the program calls for the production of clean fuel vehicles according to the following schedule: 500,000 in 1995, 750,000 in 1996 and 1,000,000 each
year for the period between 1997 and 2003 (Sec. 201).
6. Basic Inspection/Maintenance - provides for the establishment of inspection/maintenance programs in marginal nonattainment areas (Title I, Sec. 103).
7. Enhanced Inspection/Maintenance - provides for a revision (i.e., enhancement) in the current inspection/maintenance program for serious nonattainment areas (Title
I, Sec. 103).
8. Oxides of Nitrogen - the standards for this entry are explained under the tightened tailpipe entry (line 3). The costs are shown as a separate entry because they
comprise a significantly large percentage of the total costs.
9. Air Toxics - requires a study to be completed evaluating air toxics emitted from mobile sources and their fuels and any necessary regulations to be implemented.
It also requires the regulation of at least benzene and formaldehyde (Ref. 20). The numbers shown are the estimated costs of controlling benzene and formaldehyde.
These costs were derived using the following assumptions and calculations. Reference 20 gives an estimated cost of control for the year 2003. Since 1998 is the
first model year impacted by any air toxics regulation, it was assumed that 100 percent of the costs would be incurred in 1998 and beyond. Prior to 1998, costs
were assumed to be incurred according to the following schedule (to account for lead-time, tooling-up, etc...,): 1995 - 25 percent, 1996 - 50 percent, 1997 - 75
percent.
It should be noted that the provisions listed above are not the only possible regulatory options under consideration for the administration's proposal. They represent
the provisions under consideration with available cost information at the time of the writing of this appendix. The costs of the final ammendments are expected to be
higher.
November 1990
-------
D-l
APPENDIX D
ESTIMATION OF PRIVATE RADON MITIGATION COSTS
This appendix provides documentation for the estimated costs of private radon mitigation efforts
which are presented in Chapter 3. The costs, which are shown in Table D-l, are based on survey
data on actual current expenditures and extrapolation from these estimates. The cost estimates
represent what can reasonably be expected given observed responses to current programs.
The estimates provided in Table D-1 were generated by adapting a radon mitigation model
developed by Small and Peters (1988).1 They include costs for both roughing-in and activating new
construction and for retrofitting existing homes. The lognormal exposure distribution parameters
used for our analysis were obtained from Puskin and Nelson (1989).2
Small and Peters assume a fixed testing rate and a logistic mitigation gradient. Doyle, et al.
(1990)3 report that 2.6 percent of the households in the Washington, D.C. media market tested for
radon exposure as part of a WJLA television radon awareness campaign. Desvousges, et al. (1989)4
found that 4-5 percent of the households in Randallstown, Maryland had tested for radon exposure
over a three-year period in the absence of any special outreach program. The EPA Radon Program
reported that 1.5 million radon monitors had been sold by mid-1989. A two percent testing rate
appears consistent with these data and was thus used to generate testing cost estimates. An average
cost of $20 per test for monitoring was assumed for both new and existing homes.
An average of about 1.1 million new single-family homes have been built over the last fifteen
years.5 About one percent of new homes are currently being constructed with roughed-in passive
radon mitigation at a cost of $300 per home. It costs an additional $200 to activate the system. To
calculate these costs for future years, it is assumed that the rough-in rate will double in 1990 and
1 Small, Mitchell J. and Catherine A. Peters, "Public Policy Model for the Indoor Radon
Problem," Mathematical Computer Modeling 10:5 (1988), 349-358.
2 Puskin, Jerome S. and Christopher B. Nelson, "EPA's Perspective on Risks from Residential
Radon Exposure," Journal of the Air Pollution Control Association, 39:7 (July 1989), 915-920.
3 Doyle, James K., Gary H. McClelland, William D. Schulze, Paul A. Locke, Steven R.
Elliott, Glenn W. Russell, and Andrew Moyad, An Evaluation of Strategies for Promoting Effective
Radon Mitigation, U.S. Environmental Protection Agency report EPA/230/02-90-275, March, 1990.
4 Desvousges, William H., V. Kerry Smith, and Hillery H. Rink III, Communicating Radon
Risk Effectively: Radon Testing in Maryland, Research Triangle Institute final report to U.S. EPA
Office of Planning and Evaluation, EPA-230-03-89-048, March 1989.
5 U.S. Bureau of the Census, Statistical Abstract of the United States, 109th ed., Washington,
D.C., 1989.
November 1990
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D-2
Environmental Investments
increase by two percent per year through the year 2000. In the absence of data on the behavior of
owners of homes with roughed-in systems, they are assumed to be twice as likely to test and
mitigate as owners of homes that are not roughed-in.
Figure D-l shows the assumed logistic function for the probability of mitigating at various
exposure levels. The points indicated in the figure show the proportion of respondents in an
ongoing study of New York homeowners6 who said they did something to lower their radon
exposure and those who spent at least $100 on mitigation. These households participated in an
extensive monitoring and risk communication study over a three-year period. Table D-2 shows the
number of homeowners who mitigated at various exposure and cost levels. The New Jersey
Department of Environmental Protection indicates that about 12,000 New Jersey homes had been
mitigated as of 1989. The EPA Radon Program estimates the national mitigation level to be about
four times this number. The rate derived from the logistic response gradient is consistent with this
EPA's estimate.
The overall average mitigation cost in the New York study was about $1200. In a personal
communication, William Schulze reported that eight of the 700 respondents in the WJLA survey
employed a private mitigation contractor and reduced home radon exposures to 3-5 pCi/1. The
average cost was $1346, but one homeowner paid $4500. Excluding the high observation, the
average cost was $895. Respondents estimated that operating costs averaged $73 per year. An
additional 43 homeowners reported average mitigation costs of $123, but did not retest; the
effectiveness of these efforts is thus questionable.
Napolitano (1987)7 estimated average costs weighted by home foundation type to be about
$1800 in capital costs and $130 in annual operating and maintenance cost. Bruce Henschel of the
EPA Office of Research and Development estimates that 95 percent of homes with basement
readings between 4 and 10 pCi/1 could be mitigated at a commercial cost of $800-$2500. The cost
estimates reported here are based on the $1200 cost from the New York study as the best available
estimate of what homeowners actually spent in 1988 on capital costs, and Napolitano's estimate of
O&M costs.
There was very little homeowner radon testing and mitigation activity in 1986 and 1987. The
cost estimates assume a rapid buildup to current levels of activity from nearly negligible levels in
the first two years. The cost analysis in this report assumes that the public's response to EPA's
outreach activities will remain the same through the year 2000. In each year after 1988, we assume
Smith, V. Kerry, William H. Desvousges, Ann Fisher, and F. Reed Johnson,
Communicating Radon Risk Effectively: A Mid-Course Evaluation, final report to U.S. EPA Office
of Policy, Planning, and Evaluation, EPA-230-07-87-029, July 1987.
7 Napolitano, Samuel, "An Analysis of Radon Risks and Strategies for their Reduction," EPA
Office of Radiation Programs, October 2, 1987 draft.
November 1990
-------
Appendix D—Private Radon Mitigation Costs D-3
that two percent of the untested population will monitor their homes for radon. Mitigation rates for
existing homes with radon exposure above four pCi/1 are assumed to continue to range between five
percent and 25 percent.
November 1990
-------
D-4 Environmental Investments
Fig. D-l: PROBABILITY OF MITIGATING BY EXPOSURE LEVEL
0.5
0.4
0.3
0.2
0.1
0
0
RADON EXPOSURE (pCi/1)
ALL MITIGATORS (NY) SPENT > $100 (NY)
Source: Based on proportion of respondents in V. Kerry Smith, William H. Desvousges, Ann Fisher, and F. Reed Johnson, Communicating Radon Risk
Effectively: A Mid-Course Evaluation, final report to U.S. EPA Office of Policy, Plannirg, and Evaluation, EPA-230-07-87-029, July 1987, who said
they did something to lower their radon exposure and those who spent at least $100 on mitigation.
November 1990
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Appendix D—Private Radon Mitigation Costs D-5
Table D-l: PRIVATE RADON MITIGATION COSTS
(millions of 1986 dollars)
)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))
Mon i tor i ng Costs
1. New Construction 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.2
2. Existing Homes 0.5 1.5 10.0 23.6 22.9 22.4 22.0 21.5 21.1 20.7 20.3 19.9 19.5 19.1 18.7
3. Total Monitoring
Costs
Capital Costs
4. New Construction
5 . Ex i st i ng Homes
6. Total Capital
Costs
7. Total Capital
Costs 1 .1
Operating Costs
8. New Construction
9. Ex i st i ng Homes
10. Total Operating
Costs
11. Total Costs 1.2 4.2 36.5 87.7 93.4 103.6 113.7 123.9 134.3 144.6 155.2 165.7 176.5 187.3 1
New Construct i on
12. % Roughed in 0.0 0.2 0.5 1.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0
13. % Act i vated 0.0 2.0 4.0 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5
14. No. Act i vated
Ex i st i ng Homes
15. % Tested 0.0 0.1 0.8 2.0 1.9 1.9 1.9 1.8 1.8 1.8 1.7 1.7 1.7 1.6 1
2
0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.1
0.1
0.1
0.1
0.2
0.2
0
5
1 .5
10.0
23.6
22.9
22.4
22 .0
21 .5
21 .1
20.7
20.3
19.9
19.5
19.1
18
5
1 .5
10.0
23.6
22.9
22.5
22 .0
21 .6
21 .2
20.8
20.4
20.0
19.6
19.3
18
0
0.7
1 . 7
3.5
6.9
13.9
20.8
27 . 7
34.6
41 .6
48.5
55.4
62.4
69.3
76
6
1 .8
22.1
52.2
49.6
47.6
45 . 7
43.8
42 .0
40.2
38.5
36.8
35.3
33 . 7
32
6
2.5
23.8
55 . 7
56.5
61 .5
66.5
71 .5
76.6
81 .8
87 .0
92.3
97.6
103 .0
108
1
4.0
33.8
79.3
79.4
94 .0
88.5
93.1
97.8
102.6
107.4
112.3
117.2
122.3
127
0
0.0
0.0
0.1
0.3
0.8
1 .4
2.3
3.3
4.6
6.1
7.8
9.8
11.9
14
1
0.3
2 . 7
8.3
13.7
18.8
23.8
28.5
33.1
37.4
41 .6
45.6
49.4
53.1
56
1
0.3
2 . 7
8.4
14.0
19.6
25.2
30.8
36.4
42.1
47 . 7
53.4
59.2
65 .0
70
0.0
0.2
0.5
1 .0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
0.0
2.0
4.0
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
0
50
220
800
1 ,600
3,300
4,900
6,600
8,200
9,900
11,500
13,200
14,800
16,500
0.0
0.1
0.8
2.0
1 .9
1 .9
1 .9
1 .8
1 .8
1 .8
1 . 7
1 . 7
1 . 7
1 .6
2.0
2.0
3 . 7
3 . 7
3.6
3.5
3.5
3.4
3.3
3.2
3.2
3.1
3.0
3.0
500
1 ,500
18,400
43,500
41,300
39,700
38,100
36,500
35,000
33,500
32,100
30,700
29,400
28,100
16. % Miti
17. No. Mitigated
)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))
November 1990
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D-6
Environmental Investments
Notes for Table D-l by Line:
1-3. Based on average monitoring costs of $20. Assumed test rates are shown in line 15.
4-6. Based on average rough-in costs of $300 and activation costs of $200 for new construction. Average mitigation cost for existing homes is $1,200. The number of mitigations is based
on a 0.03 probability of testing. The probability of mitigating is given by 0.25/[l + exp(3 - 0.33*concentration)]. Radon concentrations are assumed to be lognormally distributed with
geometric mean of 0.9 and geometric standard deviation of 3.2. (See text of Appendix D for further details.) Rates of testing and mitigation in roughed-in new construction are assumed
to be twice those of existing homes. The rough-in and activation rates are shown in lines 12-14. The derived mitigation rates and associated number of mitigating households for each
year are shown in lines 16 and 17.
7. Total of lines 3 and 6. Line 3 includes only initial monitoring, which is considered to be more a capital than an operating cost. Follow-up monitoring is included under line 10.
8-10. Based on average annual operating and maintenance cost of $130.
11. Total of lines 7 and 10.
November 1990
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Appendix D—Private Radon Mitigation Costs
Table D-2: MITIGATION BY EXPOSURE AND COST LEVELS
D-7
))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))
Annual Number
Basement Cost ($ per household) of Total
Reading )))))))))))))))))))))))))))))))))))))))))))))))))) House- Cost
(pci/l) <100 101-500 501-1000 1001-2000 2501-5000 >5000 holds ($)
))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))
Average
Cost
($)
<1
32
10
3
4
0
0
49
10,755
219
1-3 . 9
65
16
2
3
2
1
89
86,005
966
4-19 . 9
45
4
4
2
2
4
61
112,930
1, 851
>20
6
3
2
0
1
0
12
35,920
2 , 993
Total
Number 148 33 11 9 5 5 211 245,610
))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))
1, 164
Source: Smith, V. Kerry, William Desvousges, Ann Fisher, andF. Reed Johnson, Communicating Radon Risk Effectively: A Mid-Course Evaluation, Final Report to the U.S. EPA Office of
Policy, Planning and Evaluation, EPA-230-07-87-289, July 1987.
November 1990
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E-l
APPENDIX E
ESTIMATION OF NON-POINT SOURCE POLLUTION CONTROL COSTS
This appendix contains background data and documentation for the non-point source control
costs presented in Chapter 4. Historical costs were derived for three types of non-point source
pollution control which are discussed in the sections indicated below.
E.l. Soil erosion control;
E.2. Highway erosion control; and
E.3. Agricultural feedlot runoff control.
E.l. SOIL EROSION CONTROL
Table E-l contains estimates of soil erosion control costs for public and private sectors of the
economy. The capital costs are based on estimates of erosion control program grants distributed by
Federal agencies, primarily the Department of Agriculture (USDA), with matching funds provided
by state, local or private farming operations. Not all erosion control efforts are aimed at preventing
water quality damages; thus, only a portion of total expenditures for erosion control were attributed
to non-point source water pollution control. The portion chosen was 10 percent, which is based on
information provided in USDA publications that breakdown certain Federal expenditures for erosion
control program by purpose. The 10 percent factor was applied to costs for all erosion control
activities, both public and private.
For certain years, the relative contribution of Federal, state, local and private costs are not
broken out separately from the expenditure data. For these years, the average proportion of total
costs borne by each sector in years for which data were available were used to estimate costs by
sector.
While data on total costs and total capital costs are available, data on capital and operation and
maintenance (O&M) costs for individual sectors is not reported. Additional information allowed
us to distinguish private capital costs from government expenditures. Armed with this information,
it was assumed that costs were divided evenly between capital and O&M expenditures for Federal,
state and local governments, while 75 percent of private expenditures were for capital improvements
and 25 percent were used to operate and maintain these structures. These ratios maintained the
observed balance between aggregate national capital and O&M costs, and public and private costs.
E.2. HIGHWAY EROSION CONTROL
The cost estimates for highway erosion control shown in Table E-l were provided by the
Department of Commerce "Pollution Abatement and Control Expenditures" (PACE) reports. The
Commerce reports do not separate state and local expenditures in this area. Therefore, it was
assumed that the division is approximately 50-50, which mirrors that for soil erosion costs. The
distribution of total costs between capital and O&M costs, on the other hand, was assumed to be
November 1990
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E-2
Environmental Investments
more heavily weighted to O&M costs. Ninety percent of Federal costs were attributed to O&M
costs, and the remaining 10 percent to capital costs. The ratio of O&M to capital costs for state and
local governments was assumed to be 4:1, due to the relatively greater amounts of new highway
construction undertaken by state and local governments.
All highway erosion control measures are assumed to contribute to the improvement or
maintenance of water quality conditions. If this assumption is too strong, the cost estimates should
be adjusted downward to reflect only projects having positive contribution to water quality
conditions in nearby waterbodies.
E.3. AGRICULTURAL FEEDLOT RUNOFF CONTROL
The cost estimates for agricultural feedlots shown in Table E-l are included in the non-point
source category, although a strong case can be made to include them in the point source category.
The estimates are based on data from the Department of Commerce PACE reports. The costs are
clearly differentiated in the PACE reports between capital and O&M expenditures. All costs are
attributed to private operations, and no feedlot costs have been estimated for public activities, which
are not significant.
E.4. MISSING ESTIMATES
The costs of non-agricultural erosion controls have not been included in the current cost
estimates; thus, the costs of controlling water pollution from silvicultural, rangeland, and mining
have been omitted. These costs have been significant in selected areas of the United States, but
national estimates have been relatively low compared to costs for controlling agricultural sources
of pollution. The costs of controlling nutrients on agricultural lands have not been included,
although it is expected that some part of these costs have been captured in the costs included for
erosion control. Some agricultural soil erosion control projects also serve to reduce nutrient runoff
into rivers, lakes and estuaries.
Greater attention is currently being directed to non-point sources of pollution, so future costs
may eventually prove to much greater than those estimated in this report. Preliminary analysis
suggests that soil erosion costs would increase dramatically if pollution control measures were
applied widely on farmlands.
November 1990
-------
Appendix E—Non-point Source Pollution Control Costs E-3
Table E-l: CONTROL COSTS FOR CONSERVATION, HIGHWAY EROSION, AND ANIMAL FEEDLOTS
(millions of 1986 dollars)
Category/Funding Source 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986
So i I Conservat i on
Non-EPA Federal Capital
74
80
57
65
72
80
77
60
63
66
68
70
66
71
53
Non-EPA Federal Operating
74
80
57
65
72
80
77
60
63
66
68
70
66
71
53
State Government Capital
7
7
6
6
7
7
7
6
6
6
6
6
6
6
5
State Government Operating
7
7
6
6
7
7
7
6
6
6
6
6
6
6
5
Local Government Capital
7
7
6
6
7
7
7
6
6
6
6
6
6
6
5
Local Government Operating
7
7
6
6
7
7
7
6
6
6
6
6
6
6
5
Private Capital
70
74
59
65
70
76
72
60
64
64
66
68
63
68
51
Pr i vate Operat i ng
23
25
20
22
23
25
24
20
21
21
22
23
21
23
1 7
ghway Erosion
Non-EPA Federal Capital
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Non-EPA Federal Operating
7
6
5
5
6
6
5
6
5
7
6
7
7
5
5
State Government Capital
53
48
43
46
44
36
32
36
37
35
40
37
41
39
42
State Government Operating
213
193
1 70
184
1 77
146
127
143
146
142
159
150
165
156
168
Local Government Capital
53
53
53
53
53
53
53
53
53
53
53
53
53
53
53
Local Government Operating
213
213
213
213
213
213
213
213
213
213
213
213
213
213
213
jricultural Feed 1ots
Private Capital
5
5
6
6
6
6
5
4
3
3
3
2
3
3
3
Pr i vate Operat i ng
1
1
2
2
4
4
4
4
4
5
6
7
8
8
8
Sources for Table E-l
Soil conservation expenditures are derived from a diverse number of sources. The primary data sources include:
"Conservation and Erosion Control Costs in the United States," G. Pavelis, USD A, Economic Research Service, ERS Staff Report No. AGES850423, July 1985.
"Conservation capital in the United States, 1935-1980," Journal of Soil and Water Conservation, G. Pavelis, Nov-Dec, 1983.
"1980 Appraisal Part I: Soil, Water, and Related Resources in the United States: Status, Condition and Trends", USD A, Soil Conservation Service, March, 1981.
"Agricutural Statistics," US Department of Agriculture, various years.
November 1990
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E-4
Environmental Investments
Highway erosion expenditures are from the U.S. Department of Commerce, Bureau of Economic Analysis series on "Pollution Abatement and Control Expenditure." For example, the most recent
data was published in June, 1989 in the Survey of Current Business. Cost estimates for federal expenditure can be found in Table 7, line 20, and costs for state and local governments can be found
on line 23.
Costs in the Survey of Current Business do not differentiate between capital and operating expenditures. Therefore, federal expenditures were assumed to be 10 percent capital cost and 90 percent
operating cost. State and local expenditures were assumed to be 20 percent capital costs and 80 percent operating costs. The difference is due to the degree of new construction occuring on state
and local highways, versus that taking place on federal highways.
Feedlot expenditures are from the U.S. Department of Commerce, Bureau of Economic Analysis series on "Pollution Abatement and Control Expenditures." For example, the most recent data
was published in June, 1989 in the Survey of Current Business. Cost estimates can be found in Table 7, line 6 for capital, and line 12 for operating expenditures.
November 1990
-------
F-l
APPENDIX F
ESTIMATION OF WATER POLLUTION CONTROL COSTS
This appendix provides component costs and background documentation for the derivation of
the historical water quality and drinking water cost estimates presented in Chapter 4. These two
categories of water costs are discussed separately below.
F.l. WATER QUALITY COSTS
Estimates of historical water quality costs were derived from three different sources. Estimates
of private sector costs were derived from the "Pollution Abatement and Control Expenditures"
(PACE) reports published annually in the Survey of Current Business by the U.S. Department of
Commerce. These costs represent private expenditures to control industrial effluents in compliance
with NPDES permits and for the pretreatment of discharges to municipal wastewater treatment
facilities.
Estimates of state and local costs were derived from annual Government Finances reports
published by the U.S. Census Bureau. The Census data show state and local water quality program
implementation costs as well as wastewater treatment and sewerage costs. Adjustments were made
to the Census data to remove all indirect expenditures associated with Federal and state grants to
state and local governments. In addition, 20 percent of state and local costs reported as "natural
resources" costs in the Census data were added to state and local wastewater treatment and sewerage
costs. This adjustment was made to include that portion of natural resource costs which are believed
to be related to water quality.
Finally, estimates of EPA water quality costs which, for the most part, represent Federal grants
to state and local governments for NPDES program implementation and wastewater treatment,
respectively, were derived from annual "Justification of Appropriation Estimates for Committee on
Appropriations" documents.
Table F-l presents cost data from the Government Finances series. Table F-2 presents data on
Federal grants. Table F-3 contains local capital expenditures for sewerage and wastewater treatment
adjusted to exclude Federal grants to local governments. Table F-4 presents estimates of total state
and local water quality expenditures which include that portion of natural resource expenditures
directed to water quality and exclude Federal grants for wastewater treatment. Table F-5 presents
state, local, and private water quality costs in current dollars broken into capital and O&M cost
components. Table F-6 shows these costs in constant 1986 dollars, and Table F-7 shows the
conversion of cost estimates from fiscal years into calendar years.
F.2. DRINKING WATER TREATMENT COSTS
November 1990
-------
F-2
Environmental Investments
The Safe Drinking Water Act (SDWA) of 1974 initiated a regulatory program to develop and
enforce uniform national quality standards to assure the safety of public drinking water supplies.
The SDWA called for promulgation of National Interim Primary Drinking Water Regulations
(NIPDWR) while final regulations were being developed. The Final EPA rule specifying the
NIPDWR for inorganic and microbiological contaminants was published in the Federal Register in
December of 1976. State enforcement was required to begin within 18 months. Another rule, the
Total Trihalomethane (TTHM) regulation directed to controlling the most common forms of
harmful by-products of chlorine disinfection, was finalized in November of 1979. Together, the
TTHM rule and the interim regulations have accounted for the majority of SDWA-induced
compliance expenditures to date.
Final National Primary Drinking Water Regulations for fluoride, volatile organic chemicals
(VOCs), surface water treatment, and coliforms were promulgated only recently and thus have only
just begun to impose costs. These and other forthcoming rules for the remainder of the 83
contaminants listed in the 1986 Amendments to the SDWA are expected to add significantly to
compliance costs over the next several years.
Total drinking water treatment costs are shown in Tables F-8 through F-11. The data in the
tables are broken down into three time periods corresponding to the appropriate regulatory phases:
The Pre-Regulatory Period covering years prior to 1978, during which there were no effective
regulations under the SDWA;
The Interim (NIPDWR/TTHM) Period covering years 1978-1988, during which the interim
primary regulations and the trihalomethane rule were the only effective SDWA regulations; and
The 1986 SDWA Amendments Period covering years 1989-2000, during which compliance
costs pursuant to the SDWA 1986 amendments have and will be incurred.
The focus of this section of Appendix F is costs associated with treating public drinking water
supplies as opposed to costs directly related to providing public water (e.g. costs for water mains).
The Government Finances series, from which data presented in columns B and C of Tables F-8 and
F-9 (data from Table F-8 indexed to 1986 dollars) were obtained, reports not only the local
government costs associated with drinking water treatment, but also costs for supplying water to the
public. Since they are not directly related to costs incurred for assuring the safety of public drinking
water, estimated water supply costs were removed from the Government Finances series data. The
costs that remain (costs for water treatment) are shown in columns F and G of Tables F-8 and F-9.
Figures 1 and 2 present costs for water treatment, while Figures 3 and 4 present total drinking water
costs, including costs for water supply and treatment, disaggregated into baseline and SDWA
expenditures.
November 1990
-------
Appendix F—Water Pollution Control Costs
F-3
F.2.1. Expenditures During The Pre-Regulatory Period
Even before Federal regulations regarding drinking water quality were promulgated,
municipalities and private water suppliers incurred treatment costs to assure acceptable taste and
odor and to avoid outbreaks of acute waterborne diseases. The U.S. Public Health Service published
voluntary standards in 1962 which were followed widely.
A November, 1977 EPA report entitled, The Cost of Water Supply And Water Utility
Management, summarizes the results of research conducted by the Municipal Environmental
Research Laboratory that provides insights into the cost of treating water in the pre-regulatory
period. Detailed case studies of 12 municipal water utilities of various sizes and geographic
locations were prepared. A time series of cost data was developed for each utility covering the
period 1965 through 1974. The results indicate that, on average, 12.4 percent of total drinking water
supply O&M costs were devoted to water treatment. These data were used to calculate that portion
of total drinking water O&M costs devoted to treatment during the pre-regulatory period.
Unfortunately this report analyzed capital costs in terms of annual interest and depreciation costs
only, which is not compatible with capital outlays, the focus of our analysis. A 1977 Commerce
Department study entitled, The 1977 Market for Water And Wastewater Treatment Equipment,
provides a time series of data that permits a comparison of capital outlays for drinking water
treatment to total capital outlays by the water industry. For the period 1965 through 1974, the data
indicate that capital outlays for water treatment were 18.4 percent of total capital outlays by drinking
water suppliers. These data were used to calculate that portion of total drinking water capital costs
that were devoted to treatment during the pre-regulatory period.
F.2.2. The Interim Period
In August 1980, EPA published a report entitled, Water Utility Financing Study: National Costs
of The Interim Primary Drinking Water Regulations. This report estimated that treatment processes
to be installed pursuant to the NIPDWR would result in capital outlays of $1.49 billion and O&M
costs of $231 million per year. The total national cost of associated monitoring requirements was
not estimated.
The forecasts on which the Water Utility Financing Study was based did not, for the most part,
materialize. Monitoring data revealed that inorganic chemical contamination of supplies was not
as extensive as had been supposed. The inorganic chemical portions of the NIPDWR were modeled
after the 1962 U.S. Public Health Service Standards, and many public water systems were already
meeting these standards. It is believed that relatively little compliance activity has actually been
required regarding inorganic chemicals, which accounted for the bulk of forecasted expenditures.
In contrast, monitoring for microbiological contamination has revealed a significant number of
problems requiring resolution. The microbiological portion of the total and compliance
expenditures forecast in the Water Utility Financing Study included capital outlays of $343 million
November 1990
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F-4
Environmental Investments
and O&M costs of $38 million. The declines measured in the number of violators of
microbiological standards suggests that these compliance costs were realized.
In the September 1979 report, Economic Impact Analysis of The Promulgated Trihalomethane
Regulation For Drinking Water, EPA estimated that total compliance costs for this rule would
include capital outlays of $104 million and O&M costs of $14 million per year. Monitoring costs
were not included in the analysis. In 1986, the American Water Works Association Research
Foundation conducted a survey of a statistical sampling of water systems to assess trihalomethane
compliance and to estimate compliance costs. By extrapolation, the study concludes that industry-
wide capital outlays fell in a range from $31 million to $99 million while O&M expenditures range
from $8 million to $29 million per year.1
In the report, 1984 Water Utility Operating Data, based on a member survey conducted by the
American Water Works Association, an estimate of the existing level of expenditure for monitoring
of regulated contaminants is provided. Converted to 1986 dollars, the responding utilities, which
serve 46 percent of the total population served by community water systems, reported expenditures
totalling $53 million per year. If the utilities serving the other 54 percent of the total population
served by community water systems expended proportionate amounts, the total monitoring
expenditure for all community water systems would be $ 115 million per year.
By synthesizing the above analyses, it was possible to construct an overall estimate of SDWA
compliance expenditures during the Interim period covering years 1978 through 1988. To estimate
capital and O&M expenditures, it was assumed that the microbiological portion of expenditure
forecasts for the NIPDWR and the trihalomethane regulation were fully realized. In addition, the
estimate of monitoring costs based on the AWWA survey was used. Total O&M expenditures
(including monitoring costs) over the period are estimated as $167 million per year. For capital
outlays, the total estimated capital cost of $447 million for compliance with microbiological and
TTHM regulations was used. This translates into an average annual capital outlay of $41 million
per year over the eleven year period.
F.2.3. The SDWA 1986Amendments Period
In compliance with Executive Order 12291, EPA is required to assess the total national cost of
all proposed new regulations. This process has been completed for many new regulations
forthcoming under the 1986 Amendments to the Safe Drinking Water Act, except for the
disinfection by-products rules. It is estimated that, when fully realized, compliance with the new
regulations will require additional capital outlays of roughly $1 to $2 billion per year and additional
O&M expenditures (including monitoring costs) of about $1.25 billion per year throughout the mid
to late 1990s.
1 McGuire, M.J. and Meadow, R.G., "AWWARF Trihalomethane Survey," Journal of the
American Water Works Association, Vol. 80, No. 1, January 1988.
November 1990
-------
Appendix F—Water Pollution Control Costs
Fig. F-l: CAPITAL OUTLAYS FOR DRINKING WATER TREATMENT
72 74 78 78 80 82 84 86 86 90 02 94 96 86 2000
I Baseline Expenditures for Water Treatment
ISDWA Expenditures for W&er Treatment
Source: Table F-9.
Fig. F-2: OPERATING EXPENDITURES FOR DRINKING WATER
TREATMENT
72 74 78 78 80 82 84 86 88 90 92 94 96 96 2000
I Baseline Expenditures for Water Treatment
I SDWA Expenditures for Wfeter Treatment
Source: Table F-9.
November 1990
-------
F-6 Environmental Investments
Fig. F-3: TOTAL CAPITAL OUTLAYS FOR DRINKING WATER SUPPLY
10 i-
9 -
72 74 787880828486889092948698 2000
bE^J Expendtairee for Water Supply Y//a Baseflne Expendtairee for Wfcter Treatment
t^j SDWA Expenaturea for Water Treatment
Source: Table F-9. Expenditures for Water Supply equals column D minus columns F and H in Table F-9.
Fig. F-4: TOTAL OPERATING EXPENDITURES FOR DRINKING WATER SUPPLY
a
is
I
5
I
® 10
T3
1
t
6
0
Source: Table F-9. Expenditures for Water Supply equals column E minus columns G and I in Table F-9.
72 74 787880828486889092949698 2000
^ Expendtairee for Water Supply BeseRne Expendtairee for Wtater Treatment
SDWAExpentttures for Water Treatment
November 1990
-------
Appendix F—Water Pollution Control Costs F-7
Table F-l: DATA FROM GOVERNMENT FINANCES SERIES
(millions of current dollars)
EXPENDITURES FOR SEWERAGE EXPENDITURES FOR NATURAL RESOURCES
Loca 1
State
Loca 1
State
Cap i ta1
0&M
Total
Capital
0&M
Total
Cap i ta1
0&M
Total
Cap i ta1
0&M
Total
B
C
D
F
G
H
J
K
L
N
0
P
1972
2,091
1 ,073
3,164
0
0
0
233
407
640
542
1 ,928
2,470
1973
2,428
1 ,176
3,604
0
0
0
248
407
655
526
2,097
2,623
1974
2,640
1 ,440
4,080
0
0
0
290
454
744
631
2,286
2,917
1975
3,569
1 ,693
5,262
0
0
0
336
519
855
777
2,591
3,368
1976
3,955
1 ,982
5,937
0
0
0
336
685
1 ,021
736
2,905
3,641
1977
4,208
2,329
6,537
0
0
0
301
595
896
953
3,155
4,108
1978
4,180
2,662
6,842
185
115
300
296
688
984
348
2,893
3,241
1979
5,415
3,073
8,488
204
103
307
334
778
1,112
387
3,207
3,594
1980
6,028
3,530
9,558
243
91
334
526
859
1 ,385
527
3,597
4,124
1981
6,692
4,084
10,776
220
125
345
448
1 ,003
1 ,451
570
4,155
4,725
1982
5,660
4,778
10,438
235
124
359
368
980
1 ,348
696
4,469
5,165
1983
5, 726
5,310
11,036
80
123
203
480
1 ,057
1 ,537
831
4,714
5,545
1984
5,550
5,720
11 ,270
113
133
246
584
1 ,175
1 , 759
829
4,833
5,662
1985
5, 738
6,119
11 ,858
187
141
328
660
1 ,302
1 ,962
1
,076
5,319
6,395
1986
6,296
6,670
12,966
165
177
341
727
1 ,449
2,176
1
,076
5,822
6,897
1987
7,114
7,342
14,456
192
213
406
745
1 ,639
2,384
1
,261
6,093
7,354
Footnotes for Table F-l by Column
EXPENDITURES FOR SEWERAGE:
B Local Capital Expenditures for Sewerage from Government Finance series. Used "Total Capital Outlay" under Direct Expenditures.
For 1985-1987 see Table 8; for 1977 and 1981-1984 see Table 14; for 1978-1980 see Table 13; and for 1972-1976 see Table 9.
C Local O&M Expenditures for Sewerage from Government Finance series. Used "Current Operation" under Direct Expenditures. For
1985-1987, see Table 8. For 1984 and earlier, Local O&M was calculated in the spreadsheet by subtracting local capital expenditures
(column B) from total local expenditures (column D).
D Total Local Expenditures for Sewerage from Government Finance series. Used "Total" under Direct Expenditures. For 1985-1987
see Table 8; for 1977 and 1981-1984 see Table 11; for 1978-1980 see Table 10; and for 1972-1976 see Table 7.
F State Capital Expenditures for Sewerage from Government Finance series. Used "Total Capital Outlay" under Direct Expenditures.
For 1985-1987 see Table 8; for 1977 and 1981-1984 see Table 14; for 1978-1980 see Table 13; and for 1972-1976 see Table 9.
G State O&M Expenditures for Sewerage from Government Finance series. Used "Current Operation" under Direct Expenditures.
For 1985-1987, see Table 8. For 1984 and earlier, State O&M was calculated in the spreadsheet by subtracting state capital expenditures
(column F) from total state expenditures (column H).
H Total State Expenditures for Sewerage from Government Finance series. Used "Total" under Direct Expenditures. For 1985-1987
see Table 8; for 1977 and 1981-1984 see Table 11; for 1978-1980 see Table 10; and for 1972-1976 see Table 7.
November 1990
-------
F-8
Environmental Investments
EXPENDITURES FOR NATURAL RESOURCES:
J Local Capital Expenditures for Natural Resources from Government Finance series. Used "Total Capital Outlay" under Direct
Expenditures. For 1985-1987 see Table 8; for 1977 and 1981-1984 see Table 14; for 1978-1980 see Table 13; and for 1972-1976 see
Table 9.
K Local O&M Expenditures for Natural Resources from Government Finance series. Used "Current Operation" under Direct
Expenditures. For 1985-1987, see Table 8. For 1984 and earlier, Local O&M was calculated in the spreadsheet by subtracting local
capital expenditures (column J) from total local expenditures (column L).
L Total Local Expenditures for Natural Resources from Government Finance series. Used "Total" under Direct Expenditures. For 1985-
1987 see Table 8; for 1977 and 1981-1984 see Table 11; for 1978-1980 see Table 10; and for 1972-1976 see Table 7.
N State Capital Expenditures for Natural Resources from Government Finance series. Used "Total Capital Outlay" under Direct
Expenditures. For 1985-1987 see Table 8; for 1977 and 1981-1984 see Table 14; for 1978-1980 see Table 13; and for 1972-1976 see
Table 9.
O State O&M Expenditures for Natural Resources from Government Finance series. Used "Current Operation" under Direct
Expenditures. For 1985-1987, see Table 8. For 1984 and earlier, State O&M was calculated in the spreadsheet by subtracting state
capital expenditures (column N) from total state expenditures (column P).
P Total State Expenditures for Natural Resources from Government Finance series. Used "Total" under Direct Expenditures. For 1985-
1987 see Table 8; for 1977 and 1981-1984 see Table 11; for 1978-1980 see Table 10; and for 1972-1976 see Table 7.
November 1990
-------
Appendix F—Water Pollution Control Costs F-9
Table F-2: FEDERAL GRANT ADJUSTMENTS
(millions of current dollars)
EPA
Construct i on
Grants
(Title II)*
EPA Water Qual
ity Grants
to States
Sect i on
106**
Sect i on
205(g)***
Sect i on
205(j )***
Total
R
T
U
W
Y
AA
U+W+Y
1972
413 #
15
#
15
1973
684 #
20
#
20
1974
1 ,553 #
50
#
50
1975
1 ,938
Actua1:
46
46
1976
2,790 ##
2429
46
46
1977
3,169 ##
3530
51
51
1978
3,187
53
53
1979
3,756
54
54
1980
4,343
49
49
1981
3,881
51
51
1982
3,756
51
50
101
1983
2,983
54
127
34
215
1984
2,623
54
83
23
160
1985
2,900
61
100 #
24 i
* 185
1986
3,113
62
93
19
1 74
1987
2,920
71
82
30
183
Footnotes for Table F-2
* Amounts are actual outlays from the annual Justification of Appropriation Estimates for Committee on
Appropriations; except for those noted by #, which are adjusted outlays
## An adjustment for transition quarter was made where noted by ##, as follows:
$2429 for 1976 and $3187 for 1978 sum to $5616, that sum divided by 2 equals $2808, the $3530 for 1977 minus
$2808 equals $722; one-half of the $722 or $361 is distributed to 1976 [$2429 + $361 = $2790] and to 1977
[$2808+ $361 =$3169]
** Amounts are actual obligations from the annual Justification of Appropriation Estimates for Committee on
Appropriations, except for those noted by #, which are budget authority
*** Amounts are actual obligations from the annual Justification of Appropriation Estimates for Committee on
Appropriations, except for that noted by #, which is estimated obligations
R EPA Construction Grants. Title II Construction Grants began in 1972. Amounts are actual outlays from the annual
Justification of Appropriation Estimates for Committee on Appropriations.
The amounts for 1976 and 1977 were adjusted to account for the transition quarter. The adjustment is made as
follows: the actual outlays of $2429 for 1976 and $3187 for 1978 sum to $5616 and that sum divided by 2 equals
$2808. The actual outlay of $3530 for 1977 minus $2808 equals $722. One-half of $722 or $361 is distributed
to 1976 ($2429 + $361 = $2790) and the other half to 1977 ($2808 + $361 = $3169).
November 1990
-------
F-10
Environmental Investments
T Amounts for 1976 and 1977 are actual outlays from the annual Justification of Appropriation Estimates for
Committee on Appropriations. The actual outlays for these two years were adjusted in (column R) to account for the
transition quarter.
U Section 106 grants. Amounts are from the annual Justification of Appropriation Estimates for Committee on
Appropriations, under the Abatement, Control and Compliance appropriation. For 1972-1974, amounts are budget
authority. For 1975-1988, amounts are actual obligations.
W Section 205(g) grants. Amounts are from the annual Justification of Appropriation Estimates for Committee on
Appropriations. Amounts are actual obligations, except for 1985 which is estimated obligations. Section 205
grants are under the Construction Grants appropriation. States receive section 205 funds as reserves from their
Construction Grants allotment. Section 205(g) obligations started in 1982.
Y Section 205(j) grants. Amounts are from the annual Justification of Appropriation Estimates for Committee on
Appropriations. Amounts are actual obligations, except for 1985 which is estimated obligations. Section 205
grants are under the Construction Grants appropriation. States receive section 205 funds as reserves from their
Construction Grants allotment. Section 205(j) obligations started in 1983.
AA Total EPA Water Quality Grants to States. Amounts are the sum of section 106, 205(g), and 205(j) grants.
November 1990
-------
Appendix F—Water Pollution Control Costs F-11
Table F-3: CALCULATION OF LOCAL WASTEWATER CAPITAL
(millions of current dollars)
Adj usted
EPA
Own Source:
Loca
Wastewater
Construct
ion Grants
(Local Sewerage
Capi
tal :
(EPA Const Grants
Capital -
Loca1 Const
Grants:
(Own
Source -
- amount
reserved
Adj usted EPA
(Local Match
of Adj Local Match
Loca
Const
for Secti
on 205
Const Grants)
EPA Const Grants) Formula
Grants)
AC
AE
AG
A
AK
R
-(W+Y)
(B-AC)
AC*(Loca
Share)
Loca
/Fed)
(AE-AG)
1972
413
1 ,678
103 (0
25/0
75)
1 ,575
1973
684
1 , 744
171 (0
25/0
75)
1 ,573
1974
1 ,553
1 ,087
388 (0
25/0
75)
699
1975
1 ,938
1 ,631
485 (0
25/0
75)
1 ,147
1976
2,790
1 ,165
698 (0
25/0
75)
468
1977
3,169
1 ,039
792 (0
25/0
75)
247
1978
3,187
993
797 (0
25/0
75)
196
1979
3,756
1 ,659
939 (0
25/0
75)
720
1980
4,343
1 ,685
1,086 (0
25/0
75)
599
1981
3,881
2,811
970 (0
25/0
75)
1 ,841
1982
3,706
1 ,954
927 (0
25/0
75)
1 ,028
1983
2,822
2,904
706 (0
25/0
75)
2,199
1984
2,517
3,033
629 (0
25/0
75)
2,404
1985
2,776
2,962
1,249 (0
45/0
55)
1 ,713
1986
3,001
3,295
1,350 (0
45/0
55)
1 ,945
1987
2,808
4,306
1,264 (0
45/0
55)
3,042
Footnotes for Table F-3
AC Adjusted EPA Construction Grants. Amounts for EPA Construction Grants (column R) were adjusted by subtracting amounts
reserved for section 205 (the sum of column W and column Y).
AE Own Source. "Own Source" represents local capital expenditures for sewerage excluding federal funds from the construction grant
program. "Own Source" is calculated by subtracting Adjusted EPA Construction Grants (column AC) from Local Capital Expenditures
for Sewerage (column B).
AG Local Construction Grants. "Local Construction Grants" represents the local share of construction grant financing and is calculated
by multiplying the amount for Adjusted EPA Construction Grants (column AC) by the local share of the "Local Match Formula." For
1972-1984, the local share is 25 percent. For 1985-1987, the local share is 45 percent.
AI Local Match Formula. This column presents the formula to determine the local share of the Local/Federal match for construction
grants. Title II of the 1972 Federal Water Pollution Control Act established the construction grant program, with the local share for
construction financing at 25 percent and the federal share at 7 5 percent. The 1981 Amendments to the Clean Water Act increased the
local share to 45 percent and decreased the federal share to 55 percent for grant awards beginning in 1985.
AK Local Wastewater Capital. "Local Wastewater Capital" represents local capital expenditures for sewerage excluding local funds for
construction grants. "Local Wastewater Capital" is calculated by subtracting Local Construction Grants (column AG) from "Own
Source" (column AE).
November 1990
-------
F-12 Environmental Investments
Table F-4: ADJUSTMENT FOR 20 PERCENT OF NATURAL RESOURCE EXPENDITURES
(millions of current dollars)
Year
Adj usted
State
Adj usted
Loca 1
Cap i ta1
0&M
Cap i ta1
C
)&M
AM
AN
AO
AP
AQ
AR
AS
AT
F+(.2*N) G+(
.2*0)-AA
AK+(.2*J)
(1)
A0+AP
C+( ,2*K)
(2)
AR+AS
1972
108
371
1 ,621
29
1 ,650
1 ,154
3
1 ,157
1973
105
399
1 ,623
55
1 ,678
1 ,257
4
1 ,261
1974
126
407
757
78
835
1 ,531
5
1 ,536
1975
155
472
1 ,214
67
1 ,281
1 , 797
7
1 ,804
1976
147
535
535
78
613
2,119
9
2,128
1977
191
580
307
88
395
2,448
10
2,458
1978
255
641
255
143
398
2,800
10
2,810
1979
281
690
787
109
896
3,229
12
3,241
1980
348
761
704
93
797
3,702
13
3,715
1981
334
905
1 ,930
85
2,015
4,285
18
4,303
1982
374
91 7
1 ,101
91
1 ,192
4,974
1 7
4,991
1983
246
851
2,295
79
2,374
5,521
18
5,539
1984
279
940
2,521
94
2,615
5,955
20
5,975
1985
402
1 ,020
1 ,845
115
1 ,960
6,379
12
6,391
1986
380
1 ,167
2,090
86
2,176
6,960
12
6,972
1987
444
1 ,249
3,191
82
3,273
7,670
15
7,685
Footnotes for Table F-4
Natural Resources spending is defined by the Bureau of the Census as government activities to conserve, promote, and
develop agriculture, fish and game, forestry, and other oil and water resources, including geological research, flood
control, irrigation, drainage and conservation activities. After consultation with the Governments Division, Bureau of the
Census, it was determined that 20 percent of Natural Resources expenditures represent Water Quality expenditures. Based
on this assumption, amounts for Water Quality expenditures were adjusted to add 20 percent of Natural Resources
expenditures.
AM Adjusted State Water Quality Capital Expenditures. State Capital Expenditures for Sewerage (column F) were
adjusted by adding 20 percent of State Capital Expenditures for Natural Resources (column N).
AN Adjusted State Water Quality O&M Expenditures. State O&M Expenditures for Sewerage (column G) were
adjusted by adding 20 percent of State O&M Expenditures for Natural Resources (column O). The result is
adjusted by subtracting the amount for Total EPA Water Quality Grants to States (column AA).
AQ Adjusted Local Water Quality Capital Expenditures. Local Capital Expenditures for Sewerage (column AK)
were adjusted by adding 20 percent of Local Capital Expenditures for Natural Resources (column J).
AT Adjusted Local Water Quality O&M Expenditures. Local O&M Expenditures for Sewerage (column C) were
adjusted by adding 20 percent of Local O&M Expenditures for Natural Resources (column K).
November 1990
-------
Appendix F—Water Pollution Control Costs F-13
Table F-5: WATER QUALITY RAW DATA RECAPITULATED IN TOTALS FOR CAPITAL & OPERATING COSTS
(millions of current dollars)
Source
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1
Cap i ta1
State Govt
108
105
126
155
147
191
255
281
348
334
374
246
279
402
380
444
2
Local Govt
1 ,650
1 ,678
835
1 ,281
613
395
398
896
797
2,015
1 ,192
2,374
2,615
1 ,960
2,176
3,273
3
Pri vate
2, 767
3,206
3,190
3,579
4,161
4,556
5,000
5,291
5,030
4,760
4,814
5,005
5,655
5,750
5,784
5,945
4
Operat i ng
State Govt
371
399
407
472
535
580
641
690
761
905
91 7
851
940
1 ,020
1 ,167
1 ,249
5
6
Local Govt
Pr i vate
1 ,157
1 ,261
1 ,536
1 ,804
2,128
2,458
2,810
3,241
3,715
4,303
4,991
5,539
5,975
6,391
6,972
7,685
7
Abatement
1 ,073
1 ,256
1 ,512
1 ,802
2,184
2,587
2,922
3,425
3,848
4,357
4,454
5,084
5,588
6,035
6,445
7,236
8
Res & Dev
64
73
57
68
78
91
99
107
110
108
116
167
1 72
181
190
199
9
Total Priv
1 ,137
1 ,329
1 ,569
1 ,870
2,262
2,678
3,021
3,532
3,958
4,465
4,570
5,251
5,760
6,216
6,635
7,435
Footnotes to Table F-5 for line:
1 Figures from Column AM, Table F-4
2 Figures from Column AQ, Table F-4
3 Figures from Survey of Current Business: 1972-1982 data from July 1986, Pollution abatement and control, Pollution Abatement, Business, On capital account, Table 9, Line 7; 1983-
1987 figures from June 1989, Pollution abatement and control, Pollution Abatement, Business, On capital account, Table 6, Line 7
4 Figures from Column AN, Table F-4
5 Figures from Column AT, Table F-4
7 Figures from Survey of Current Business: 1972-1982 data from July 1986, Pollution abatement and control, Pollution Abatement, Business, On current account, Private, Table 9, Line
9; 1983-1987 figures from June 1989, Pollution abatement and control, Pollution Abatement, Business, On current account, Private, Table 6, Line 9
8 Figures from Survey of Current Business: 1972-1982 data from July 1986, Pollution abatement and control, Research and development, Private, Table 9, Line 20; 1983-1987 figures
from June 1989, Pollution abatement and control, Research and development, Private, Table 6, Line 20
9 Sum of lines 7 and 8
November 1990
-------
F-14 Environmental Investments
Table F-6: WATER QUALITY RAW DATA CONVERTED FROM CURRENT DOLLARS INTO 1986 DOLLARS
(millions of 1986 dollars)
Source
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
Cap i ta1
1
State Govt
274
247
269
313
278
335
405
401
460
409
440
274
301
409
380
431
2
Local Govt
4,170
3,942
1
, 780
2,581
1
,157
695
634
1
,276
1 ,053
2,469
1 ,401
2,638
2,818
1 ,994
2,176
3,173
3
Pri vate
7,096
7,764
6
, 769
6,931
7
,578
7,737
7,832
7
,518
6,577
5,673
5,445
5,427
5,841
5,786
5,784
5,857
Operat i ng
4
State Govt
936
939
868
952
1
,011
1 ,020
1 ,019
983
1 ,005
1 ,109
1 ,077
946
1 ,013
1 ,037
1 ,167
1 ,210
5
Local Govt
2,925
2,964
3
,275
3,635
4
,020
4,324
4,467
4
,615
4,904
5,272
5,864
6,158
6,441
6,502
6,972
7,450
6
Pri vate
3,338
3,666
3
,658
3,816
4
,282
4,682
4,907
5
,227
5,149
5,227
5,018
5,598
5,900
6,244
6,635
7,368
F i xed-we i ghted
i ndexes
7
Pr i v Cap i ta1
0.390
0.413
0
.471
0.516
0
.549
0.589
0.638
0
. 704
0.765
0.839
0.884
0.922
0.968
0.994
1 .000
1 .015
8
Pr i v Operat i ng
0.341
0.362
0
.429
0.490
0
.528
0.572
0.616
0
.676
0.769
0.854
0.911
0.938
0.976
0.995
1 .000
1 .009
9
Government
0.396
0.426
0
.469
0.496
0
.529
0.569
0.629
0
. 702
0.757
0.816
0.851
0.900
0.928
0.983
1 .000
1 .031
Footnotes to Table F-6 for line:
1
. i ne
1 ,
Tab
e
F-5,
d i vi ded
by
i ne 9,
Tab
e
F-
2
. i ne
2,
Tab
e
F-5,
d i vi ded
by
i ne 9,
Tab
e
F-
3
. i ne
3,
Tab
e
F-5,
d i vi ded
by
i ne 7,
Tab
e
F-
4
. i ne
4,
Tab
e
F-5,
d i vi ded
by
i ne 9,
Tab
e
F-
5
. i ne
5,
Tab
e
F-5,
d i vi ded
by
i ne 9,
Tab
e
F-
6
. i ne
9,
Tab
e
F-5,
d i vi ded
by
i ne 8,
Tab
e
F-
November 1990
-------
Source
Appendix F—Water Pollution Control Costs F-15
Table F-7: CONVERSION OF WATER QUALITY FISCAL YEAR FIGURES TO CALENDAR YEAR FIGURES
(millions of 1986 dollars)
1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987
Cap i taI
1 State Govt
2 Local Govt
3 Private
Operat i ng
4 State Govt
5 Local Govt
6 Private
261
4,056
7,096
2,944
3,338
258
2,861
7,764
903
3,120
3,666
291
2,181
6, 769
910
3,455
3,658
296
1 ,869
6,931
3,
3,
307
926
7,578
1 ,015
4,172
4,282
370
7,737
1 ,019
4,395
403
955
7,832
1 ,001
4,541
4,907
430
1 ,164
7,518
4,760
5,227
435
1 , 761
6,577
1 ,057
5,088
5,149
424
1 ,935
5,673
1 ,093
5,568
5,227
357
2,020
5,445
1 ,012
6,011
5,018
287
2,728
5,427
979
6,299
5,598
355
2,
5,
1 ,025
6,472
5,900
395
2,'
5,
1 ,102
6, 737
6,244
405
2,675
5,784
1 ,189
7,211
6,635
431
3,173
5,857
1 ,210
7,450
7,368
Footnotes to Table F-7 for line:
1, 2, 4, and 5. The 1972 calendar year expenditure equals the average of 1972 and 1973 fiscal year figures from Table F-6
for a I I years except 1 987, which is the 1 987 figure from Table F-6.
The same holds true
3 and 6. Conversion was not required since data did not come from Government Finance series
November 1990
-------
F-16
Environmental Investments
Table F-8: DRINKING WATER CAPITAL AND OPERATING POLLUTION CONTROL COSTS
(millions of current dollars)
Local Govt Expenditures Total Expenditures Baseline Expenditure SDWA Expenditures Total Expenditures
For Water Supply For Water Supply For Water Treatment For Water Treatment For Water Treatment
Capital O&M Capital O&M Capital O&M Capital O&M Capital O&M
Year Outlays Expenditure Outlays Expenditures Outlays Expenditures Outlays Expenditures Outlays Expenditures
A
B
C
D
E
F
G
H
1
J
K
RE-REGULATORY PERIOD
1972
1 ,343
1 ,924
1 ,589
2,276
292
282
0
0
282
282
1973
1 ,435
2,120
1 ,698
2,508
312
311
0
0
311
311
1974
1 , 743
2,340
2,062
2,768
379
343
0
0
343
343
1975
2,111
2,686
2,497
3,178
460
394
0
0
394
394
1976
2,208
3,012
2,612
3,563
481
442
0
0
442
442
1977
2,302
3,588
2,723
4,245
501
526
0
0
526
526
1978
2,136
3,907
2,527
4,622
465
573
0
0
573
573
1PDWR/TTHM
PERIOD
1979
2,671
4,399
3,160
5,204
576
631
28
118
659
748
1980
3,270
4,857
3,868
5,746
706
697
30
127
727
824
1981
3,718
5,634
4,398
6,665
803
810
33
137
842
946
1982
3,684
6,530
4,358
7,725
796
940
34
142
974
1 ,083
1983
3,753
7,105
4,440
8,405
810
1 ,024
36
151
1 ,060
1 ,174
1984
3,420
7,445
4,046
8,807
738
1 ,073
37
155
1,110
1 ,228
1985
4,133
8,301
4,889
9,820
892
1 ,197
39
165
1 ,237
1 ,362
1986
5,108
9,041
6,043
10,696
1 ,105
1 ,305
40
167
1 ,345
1 ,473
1987
5,982
9,936
7,077
11 ,754
1 ,295
1 ,436
41
1 73
1 ,477
1 ,609
Footnotes for Table F-8
FOOTNOTES FOR PRE-REGULATORY PERIOD: Expenditures for water treatment during the pre-regulatory period are computed as follows:
1. Total capital outlays (column B) and total O&M expenditures (column C) are taken from the U.S. Census Government Finance series for the years 1972 through
1978. These data represent total expenditures by water systems operated by state, regional, and local government agencies.
November 1990
-------
Appendix F—Water Pollution Control Costs
F-17
2. The Census data in columns B and C are multiplied by a factor of 1.183 to obtain estimates in columns D and E of total expenditures by the water industry,
including privately owned water systems that are not included in the Census of Governments. The 1.183 factor is based on an analysis of the ratio of persons
served by public versus private water systems and therefore assumes that expenditures are a function of population served.
3. Columns F and G present estimates of baseline industry expenditures for water treatment during the pre-regulatory period. These estimates are computed
by multiplying total industry capital outlays and O&M expenditures in column D and E by 0.184 and 0.124, respectively. These factors are based on the EPA and
Commerce Department studies described above.
4. Columns H and I representing additional incremental expenditures for SDWA compliance (above baseline expenditures for treatment) are occupied by zeros
during the pre-regulatory period.
5. Columns J and K present total expenditures for water treatment, figured as the sums: F + H and G +1. During the pre-regulatory period, columns J andK are
equivalent to columns F and G.
FOOTNOTES FOR NIPDWR/TTHM PERIOD: Expenditures for water treatment during the NIPDWR/TTHM period are computed as follows:
1. Total capital outlays (column B) and total O&M expenditures (column C) are taken from the U.S. Census Government Finance series for the years 1979 through
1987. The data points shown for 1988 are projections, based on linear regressions. These data represent total expenditures by water systems operated by state,
regional, and local government agencies.
2. The Census data in columns B and C are multiplied by a factor of 1.183 to obtain estimates in columns D and E of total expenditures by the water industry,
including privately owned water systems that are not included in the Census of Governments.
3. Columns H and I, representing additional incremental expenditures for SDWA compliance during the NIPDWR/TTHM period, present estimates of the costs
of compliance with microbiological and trihalomethane regulations as well as monitoring costs, as discussed above.
4. Columns F and G present estimates of baseline industry expenditures for water treatment during the NIPDWR/TTHM period. These estimates are computed
by first subtracting the SDWA expenditures of columns H and I from the total expenditures in columns D and E. Factors computed for treatment expenditures
during the pre-regulatory baseline period (0.184 and 0.124) are then applied to the difference to derive an estimate of baseline treatment expenditures in the
NIPDWR/TTHM period.
5. Columns I and K present total expenditures for water treatment, figured as the sums: F + H and G +1.
An alternative source for state government expenditures for implementing the 1986 Safe Drinking Water Act Amendments is State Costs of Implementing the 1986 Safe
Drinking Water Act Amendments, August 1989, published by U. S. Environmental Protection Agency, Office of Drinking Water and Association of State Drinking Water
Administrators.
November 1990
-------
F-18 Environmental Investments
Table F-9: DRINKING WATER CAPITAL AND OPERATING POLLUTION CONTROL COSTS
(millions of 1986 dollars)
Local Govt Expenditures Total Expenditures Baseline Expenditure SDWA Expenditures Total Expenditures
For Water Supply For Water Supply For Water Treatment For Water Treatment For Water Treatment
Year
Cap i ta1
Out 1 ays
0&M
Expend i ture
Cap i ta1
Out 1 ays
0&M
Expend i tures
Cap i ta1
Out 1 ays
O&M
Expend i tures
Cap i ta1
Out 1 ays
O&M
Expend i tures
Cap i ta1
Out 1 ays
O&M
Expend i tures
A
B
C
D
E
F
G
H
1
J
K
PRE-REGULATORY PER
0D
1972
3394
4862
4015
5751
739
713
0
0
739
713
1973
3372
4982
3989
5894
734
731
0
0
734
731
1974
371 7
4990
4397
5903
809
732
0
0
809
732
1975
4255
5413
5033
6404
926
794
0
0
926
794
1976
41 71
5690
4934
6731
908
835
0
0
908
835
1977
4049
6311
4790
7466
881
926
0
0
881
926
1978
3396
6212
4018
7349
739
911
0
0
739
911
NIPDWR/TTHM PERIOD
1979
3804
6265
4500
7412
821
898
40
167
861
1066
1980
431 7
6412
5107
7586
932
920
40
167
972
1087
1981
4555
6903
5389
8166
984
992
40
167
1024
1159
1982
4329
7673
5121
9077
935
1105
40
167
975
1272
1983
41 72
7898
4935
9344
901
1138
40
167
941
1305
1984
3687
8026
4361
9494
795
1157
40
167
835
1324
1985
4205
8445
4974
9990
908
1218
40
167
948
1385
1986
5108
9041
6043
10696
1105
1305
40
167
1145
1473
1987
5799
9633
6861
11395
1255
1392
40
167
1295
1560
1988
4945
9418
5850
11142
1069
1361
40
167
1109
1528
SDWA 19E
6 AMENDMENTS PERIOD
1989
5039
9727
6032
11685
1086
1397
71
178.1
1157
1575
1990
5133
10036
6147
12050
1106
1440
74
178.1
1180
1618
1991
5227
10344
6270
12417
1126
1484
86
179.3
1212
1663
1992
5322
10653
6967
13061
1146
1527
672
458.3
1818
1985
1993
5416
10962
7465
13548
1166
1570
1058
579.8
2224
2150
1994
5510
11270
7811
13913
1185
1614
1292
579.8
2478
2194
1995
5604
11579
8099
14501
1205
1657
1470
802.6
2675
2460
1996
5698
11888
8651
15016
1225
1 700
1910
953.1
3135
2654
1997
5793
12197
851 7
15382
1245
1 744
1664
953.1
2909
2697
1998
5887
12505
8016
15820
1265
1 787
1052
1026
2316
2813
1999
5981
12814
7301
16418
1284
1831
225
1259.3
1510
3090
2000
6075
13123
7412
16783
1304
1874
225
1259.3
1530
3133
November 1990
-------
Appendix F—Water Pollution Control Costs
F-19
Footnotes for Table F-9
FOOTNOTES FOR PRE-REGULATORY PERIOD: Expenditures for water treatment during the pre-regulatory period are computed as follows:
1. Total capital outlays (column B) and total O&M expenditures (column C) are taken from the U.S. Census Government Finance series for the years 1972 through
1978. Figures represent corresponding figures from Table F-8 divided by indexes from Table F-6, line 9. These data represent total expenditures by water
systems operated by state, regional, and local government agencies.
2. The Census data in columns B and C are multiplied by a factor of 1.183 to obtain estimates in columns D and E of total expenditures by the water industry,
including privately owned water systems that are not included in the Census of Governments. The 1.183 factor is based on an analysis of the ratio of persons
served by public versus private water systems and therefore assumes that expenditures are a function of population served.
3. Columns F and G present estimates of baseline industry expenditures for water treatment during the pre-regulatory period. These estimates are computed
by multiplying total industry capital outlays and O&M expenditures in column D and E by 0.184 and 0.124, respectively. These factors are based on the EPA and
Commerce Department studies described above.
4. Columns H and I representing additional incremental expenditures for SDWA compliance (above baseline expenditures for treatment) are occupied by zeros
during the pre-regulatory period.
5. Columns J and K present total expenditures for water treatment, figured as the sums: F + H and G +1. During the pre-regulatory period, columns J andK are
equivalent to columns F and G.
FOOTNOTES FOR NIPDWR/TTHM PERIOD: Expenditures for water treatment during the NIPDWR/TTHM period are computed as follows:
1. Total capital outlays (column B) and total O&M expenditures (column C) are taken from the U.S. Census Government Finance series for the years 1979 through
1987. Figures represent corresponding figures from Table F-8 divided by indexes from Table F-6, line 9, for the years 1979-1987. The data points shown for 1988
are projections, based on linear regressions. These data represent total expenditures by water systems operated by state, regional, and local government
agencies.
2. The Census data in columns B and C are multiplied by a factor of 1.183 to obtain estimates in columns D and E of total expenditures by the water industry,
including privately owned water systems that are not included in the Census of Governments.
3. Columns H and I, representing additional incremental expenditures for SDWA compliance during the NIPDWR/TTHM period, present estimates of the costs
of compliance with microbiological and trihalomethane regulations as well as monitoring costs, as discussed above.
November 1990
-------
F-20
Environmental Investments
4. Columns F and G present estimates of baseline industry expenditures for water treatment during the NTPDWR/TTTTM period. These estimates are computed
by first subtracting the SDWA expenditures of columns H and I from the total expenditures in columns D and E. Factors computed for treatment expenditures
during the pre-regulatory baseline period (0.184 and 0.124) are then applied to the difference to derive an estimate of baseline treatment expenditures in the
NIPDWR/TTHM period.
5. Columns J and K present total expenditures for water treatment, figured as the sums: F + H and G +1.
FOOTNOTES FOR SDWA 1986 AMENDMENTS PERIOD: Expenditures were projected based on an analysis of national impact estimates from final regulations
onFlouride, Volatile Organic Chemicals, Surface Water Treatment, and Total Coliforms; proposed regulations for Phase II Synthetic Organic and Inorganic Chemicals,
Lead and Copper; and prospective regulations covering Radionuclides, Phase V Synthetic Organic and Inorganic Chemicals, Arsenic, and Mandatory Disinfection of
all public water supplies (from U.S. Environmental Protection Agency, Office of Drinking Water, Estimates of the Total Benefits and Total Costs Associated with
Implementation of the 1986Amendments to the Safe Drinking Water Act, November, 1989). It does not include estimated benefits and costs of forthcoming regulations
governing disinfection by-products as the rulemaking is preliminary.
1. Columns F and G present projections of baseline industry expenditures for water treatment during the SDWA 1986 Amendments period. These estimates
are based on a linear regression of the trend exhibited in baseline industry expenditures (expenditures for treatment net of SDWA expenditures) from 1972 to 1987
(i.e., the numbers directly above these entries in columns F and G).
2. Columns H and I present the additional incremental expenditures for SDWA compliance during the SDWA 1986 Amendments period.
3. Columns J and K present total expenditures for water treatment, figured as the sums: F + H and G +1.
November 1990
-------
Appendix F—Water Pollution Control Costs
Table F-10: DERIVATION OF PRIVATE CAPITAL AND OPERATING COSTS
(millions of 1986 dollars)
F-21
EXISTING NEW
Local Private Local Private Local Private Local Private
Year Capital Capital O&M O&M Capital Capital O&M O&M
Co 1umn
3
C
D
E
F
G
H
1
PRE-REGULATORY
PERIOD
1972
604
135
583
131
0
0
0
0
1973
600
134
597
134
0
0
0
0
1974
661
148
598
134
0
0
0
0
1975
757
169
649
145
0
0
0
0
1976
742
166
682
153
0
0
0
0
1977
720
161
756
169
0
0
0
0
1978
604
135
745
167
0
0
0
0
NIPDWR/TTHM PER
I0D
1979
703
157
871
195
0
0
0
0
1980
794
1 78
888
199
0
0
0
0
1981
837
187
947
212
0
0
0
0
1982
796
1 78
1 ,039
233
0
0
0
0
1983
769
1 72
1 ,066
239
0
0
0
0
1984
682
153
1 ,082
242
0
0
0
0
1985
774
1 73
1 ,132
254
0
0
0
0
1986
935
209
1 ,203
270
0
0
0
0
1987
1
058
237
1 ,274
285
0
0
0
0
1988
906
203
1 ,249
280
0
0
0
0
SDWA 19
86
AMENDMENTS PERIOD
1989
887
199
1 ,141
256
58
13
146
33
1990
904
202
1 ,177
264
61
14
146
33
1991
920
206
1 ,212
272
70
16
146
33
1992
936
210
1 ,248
279
549
123
374
84
1993
952
213
1 ,283
287
865
194
474
106
1994
968
21 7
1 ,318
295
1 ,056
236
474
106
1995
985
221
1 ,354
303
1 ,201
269
656
147
1996
1
001
224
1 ,389
311
1 ,560
349
779
1 74
1997
1
01 7
228
1 ,425
319
1 ,360
305
779
1 74
1998
1
033
231
1 ,460
327
859
192
838
188
1999
1
049
235
1 ,496
335
184
41
1 ,029
230
2000
1
066
239
1 ,531
343
184
41
1 ,029
230
November 1990
-------
F-22
Environmental Investments
Footnotes to Table F-10
The following footnotes apply for all categories:
Private drinking water costs are assumed to be 18.3 percent of local drinking water costs for population servced based on the following assumptions: 1) U.S. population
of 240 million; 2) approximately 71 percent of population served by local government facilities (170.4 million) and 13 percent (31.2 million) served by private facilities.
Therefore, 18.3 percent of local government costs (31.2 million divided by 170.4 million) represents private share.
Footnotes for column:
B Figures represent 81.7 percent of Column F, Table F-9
C Figures represent 18.3 percent of Column F, Table F-9
D Figures represent 81.7 percent of Column G, Table F-9
E Figures represent 18.3 percent of Column G, Table F-9
F Figures represent 81.7 percent of Column H, Table F-9
G Figures represent 18.3 percent of Column H, Table F-9
H Figures represent 81.7 percent of Column I, Table F-9
I Figures represent 18.3 percent of Column I, Table F-9
November 1990
-------
Appendix F—Water Pollution Control Costs F-23
Table F-l 1: DRINKING WATER RECAPITULATED IN TOTALS FOR CAPITAL & OPERATING COSTS
(millions of 1986 dollars)
Source
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1
Cap i ta1
State
0
0
0
0
0
0
8
41
84
81
40
76
19
27
26
37
2
Loca 1
604
600
661
757
742
720
604
703
794
837
796
769
682
774
935
1 ,058
3
Pr i vate
135
134
148
169
166
161
135
157
1 78
187
1 78
1 72
153
1 73
209
237
4
Total
739
734
809
926
908
881
739
861
972
1 ,024
975
941
835
948
1 ,145
1 ,295
5
Operat i ng
State
0
0
0
0
0
0
19
1 7
20
27
33
33
33
26
38
47
6
Loca 1
583
597
598
649
682
756
745
871
888
947
1 ,039
1 ,066
1 ,082
1 ,132
1 ,203
1 ,274
7
Pr i vate
131
134
134
145
153
169
167
195
199
212
233
239
242
254
270
285
8
Total
713
731
732
794
835
926
911
1 ,066
1 ,087
1 ,159
1 ,272
1 ,305
1 ,324
1 ,385
1 ,473
1 ,560
Footnotes to Table F-l 1
1 From annual issues of Government Finances publ ished by U.S. Department of Commerce, Bureau of the Census
2 Figures from Column B, Table F-10
3 Figures from Column C, Table F-10
4 Sum of I i nes 1 - 3
5 From annual issues of Government Finances publ ished by U.S. Department of Commerce, Bureau of the Census
6 Figures from Column D, Table F-10
7 Figures from Column E, Table F-10
8 Sum of I i nes 5-7
November 1990
-------
F-24 Environmental Investments
Table F-12: CONVERSION OF DRINKING WATER FISCAL YEAR FIGURES TO CALENDAR YEAR FIGURES
(millions of 1986 dollars)
Source
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
Cap i ta1
1
State
0
0
0
0
0
4
25
63
83
60
58
47
23
27
31
18
2
Loca 1
602
630
709
749
731
662
654
749
816
81 7
783
725
728
855
997
982
3
Pr i vate
135
141
159
168
164
148
146
168
183
183
1 75
162
163
191
223
220
4
Total
736
772
868
91 7
895
810
800
916
998
1 ,000
958
888
891
1 ,046
1 ,220
1 ,202
Operat i ng
5
State
0
0
0
0
0
10
18
18
23
30
33
33
30
32
42
23
6
Loca 1
590
598
623
665
719
750
808
879
918
993
1 ,053
1 ,074
1 ,107
1 ,168
1 ,239
1 ,261
7
Pr i vate
132
134
140
149
161
168
181
197
206
222
236
241
248
262
277
283
8
Total
722
731
763
814
880
919
988
1 ,076
1 ,123
1 ,216
1 ,289
1 ,315
1 ,355
1 ,429
1 ,516
1 ,544
Footnotes to Table F-12
1972 calendar year expenditure equals average of 1972 and 1973 fiscal year figures from Table F-l 1. The same holds true for all years except 1987, which is the 1987
figure from Table F-l 1.
November 1990
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G-l
APPENDIX G
ESTIMATION OF SOLID WASTE COSTS
This appendix provides documentation for the historical solid waste cost estimates presented
in Chapter 5. The estimation of costs for each economic sector is first discussed. This is followed
by an explanation of the methodology used to separate out that portion of total solid waste costs
resulting from Federal requirements.
G.l. DERIVATION OF SOLID WASTE COSTS BY SECTOR
The derivation of historical solid waste costs by sector is discussed below. Future costs
associated with existing solid waste programs were estimated by linearly extrapolating data on
historical costs for each sector. Cost estimates associated with new Federal solid waste regulations
were then added to the cost projections for existing solid waste programs. The derivation of costs
for new Federal requirements is discussed in Appendix A.
G. 1.1. EPA and Non-EPA Federal Costs
Estimates of historical EPA solid waste costs were derived from annual "EPA Justification of
Appropriation Estimates for Committee on Appropriations" documents. For years 1972 through
1980, expenditures were reported as solid waste costs. Beginning in 1981, however, expenditures
for solid waste were not broken out from other RCRA costs. To isolate solid waste expenditures
in years after 1980, data on RCRA budgets for individual EPA regions supplied by the EPA Office
of Resource Management were used. The regional budgets broke out solid waste costs from larger
RCRA costs; we used the average percentage of regional RCRA budgets directed to solid wastes to
calculate EPA solid waste costs for years after 1980.
Estimates of historical non-EPA Federal solid waste costs were derived from the Commerce
Department pollution abatement cost data base. Since non-EPA Federal costs are not reported in
the "Pollution Abatement Control Expenditures" (PACE) reports published in the Survey of Current
Business, this data was taken directly from the Commerce survey results for each year 1972-1987.
G. 1.2. State and Local Government Costs
Estimates of local government solid waste expenditures are reported in Tables G-1 through G-3.
These were derived from the Commerce Government Finances annual reports for years 1972-1987.
For years 1985-87, the data source reports solid waste capital and O&M costs at the local level. For
previous years, however, the data source did not break out capital and O&M expenditures separately
from total solid waste costs. To isolate capital and O&M cost estimates for these years, we applied
the 1985-87 average percentages of total costs for capital and O&M costs to the 1972-84 total
expenditure data.
November 1990
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G-2
Environmental Investments
State solid waste costs are not reported in the Government Finances series. They are believed
to be very low since solid waste has traditionally been a local responsibility. No estimates of state
costs are provided in this report.
G. 1.3. Private Costs
Tables G-l through G-3 also provide estimates of private costs for solid waste. These estimates
were derived from the PACE reports.
G.2. DERIVATION OF FEDERALLY MANDATED COSTS
To date, the Federal government has played a very limited role in the solid waste area. The
Federal government has been concerned with solid waste since the Solid Waste Act of 1965;
however, Federal involvement has been limited to providing guidelines and financial assistance for
the development of state solid waste management plans. Historically, there has been little action
with regards to state plans at both the state and Federal levels.
The Resource Conservation and Recovery Act of 1976 did not much increase the Federal role.
RCRA directed EPA to publish guidelines for solid waste management, including criteria for
determining which facilities are sanitary landfills and which are open dumps. A narrow Federal
effort was directed to closing open dumps or upgrading them to sanitary landfills. This effort was
largely limited to requiring states to publish a list of their identified open dumps, however.
Due to the limited Federal requirements in the solid waste area, few solid waste costs have been
pursuant to Federal measures. States incurred some costs for development of management plans,
but no data are available on these expenditures. Moreover, it is likely that the publication of listings
of open dumps motivated some dump owners to upgrade these facilities to sanitary landfills to avoid
local citizen action, but no cost data is available on such compliance measures.
The data on local and private solid waste costs, which together account for the large majority
of total solid waste costs, does not distinguish costs pursuant to Federal mandates from total costs.
In order to provide an estimate of Federally-driven solid waste costs, we assumed that five percent
of local and private costs were motivated by Federal measures in each of the years 1972-1987. Due
to the limited Federal role in the solid waste area, it is doubtful that this is an underestimate; it most
likely over-estimates Federally-driven costs somewhat. All EPA and non-EPA Federal costs for
solid waste were treated as being pursuant to Federal mandates, however.
November 1990
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Appendix G—Solid Waste Expenditures G-3
Table G-l: SOLID WASTE RAW DATA FROM GOVERNMENT FINANCES & SURVEY OF CURRENT BUSINESS
(millions of current dollars)
Source
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
AVG
Local Government
1
Total Expend
1 ,565
1 ,718
1 ,915
2,125
2,302
2,336
2,727
2,992
3,322
3,777
4,137
4,364
4,710
5,212
5,834
6,462
2
Cap i ta1
235
258
287
319
345
350
409
449
498
567
621
655
707
71 7
951
1 ,059
3
Operat i ng
1 ,330
1 ,460
1 ,628
1 ,806
1 ,957
1 ,986
2,318
2,543
2,824
3,210
3,516
3,709
4,004
4,495
4,883
5,403
4
Cap % of Total
0.14
0.16
0.16
0.15
5
0&M % of Total
0.86
0.84
0.84
0.85
Pr i vate
6
Cap i ta1
273
355
424
414
464
556
599
771
882
966
853
805
1 ,030
1 ,239
1 ,194
1 ,375
Operat i ng
7
Abatement
1 ,838
2,107
2,422
2,646
3,058
3,581
3,905
4,765
5,356
6,238
5,727
6,127
7,158
7,737
8,907
9,985
8
Res & Dev
12
10
13
21
20
21
16
11
19
18
20
28
29
31
32
35
9
Total 0&M
1 ,850
2,117
2,435
2,667
3,078
3,602
3,921
4,776
5,375
6,256
5,747
6,155
7,187
7,768
8,939
10,020
Footnotes for Table G-l
1 Figures from "Sanitation other than sewage" in issues of Government Finances series: 1972-1976 data from Table 7; 1977 data from Table 11; 1978-1980 data from Table 10; 1981-1984
data from Table 11; and 1985-1987 data from Table 8
2 Figures for 1972-1984 represent 15% of line 1. 15% represents the average percentage of total expenditures for capital costs for the years 1985-1987.
3 Figures for 1972-1984 represent 85% of line 1. 85% represents the average percentage of total expenditures for operating costs for the years 1985-1987.
4 1985-1987 line 2 divided by line 1. AVG = average of line 4 percentages for 1985-1987
5 1985-1987 line 3 divided by line 1. AVG = average of line 5 percentages for 1985-1987
1972-1982 figures from "Solid Waste" column, Survey of Current Business, July 1986
6 Pollution abatement and control, Pollution Abatement, Business, On capital account, Table 9, Line 7
7 Pollution abatement and control, Pollution Abatement, Business, On current account, Private, Table 9, Line 9
8 Pollution abatement and control, Research and development, Private, Table 9, Line 20
November 1990
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G-4
Environmental Investments
1983-1987 figures from "Solid Waste" column, Survey of Current Business, June 1989
6 Pollution abatement and control, Pollution Abatement, Business, On capital account, Table 6, Line 7
7 Pollution abatement and control, Pollution Abatement, Business, On current account, Private, Table 6, Line 9
8 Pollution abatement and control, Research and development, Private, Table 6, Line 20
9 Sum of lines 7 and 8
November 1990
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Appendix G—Solid Waste Expenditures G-5
Table G-2: SOLID WASTE RAW DATA RECAPITULATED IN TOTALS FOR CAPITAL & OPERATING COSTS
(millions of current dollars)
Sou rce
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
Local Government
1
Cap i ta1
235
258
287
319
345
350
409
449
498
567
621
655
707
71 7
951
1 ,059
2
Operat i ng
1 ,330
1 ,460
1 ,628
1 ,806
1 ,957
1 ,986
2,318
2,543
2,824
3,210
3,516
3,709
4,004
4,495
4,883
5,403
Pr i vate
3
Cap i ta1
273
355
424
414
464
556
599
771
882
966
853
805
1 ,030
1 ,239
1 ,194
1 ,375
4
Operat i ng
1 ,850
2,117
2,435
2,667
3,078
3,602
3,921
4,776
5,375
6,256
5,747
6,155
7,187
7,768
8,939
10,020
Fixed-weighted pr
i ce i ndexes
5
Government
0.386
0.418
0.461
0.494
0.524
0.553
0.583
0.639
0.687
0.782
0.840
0.882
0.924
0.959
1 .000
1 .040
6
SW Bus Cap
0.373
0.390
0.432
0.489
0.523
0.568
0.622
0.684
0.762
0.848
0.907
0.947
0.968
0.970
1 .000
1 .053
7
SW Bus O&M
0.388
0.420
0.466
0.495
0.525
0.552
0.579
0.635
0.681
0.778
0.835
0.876
0.920
0.957
1 .000
1 .037
Footnotes for Table G-2
1 Recapitulation of Line 2, Table G-l
2 Recapitulation of Line 3, Table G-l
3 Recapitulation of Line 6, Table G-l
4 Recapitulation of Line 9, Table G-l
Lines 5, 6, and 7: Selected fixed-weighted price indexes (1982), Survey of Current Business, converted to 1986 index.
1972-1982 indexes taken from July, 1986 issue
1983-1987 indexes taken from June, 1989 issue
November 1990
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G-6 Environmental Investments
Table G-3: SOLID WASTE RAW DATA CONVERTED FROM CURRENT DOLLARS INTO 1986 DOLLARS
(millions of 1986 dollars)
Source 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987
Local Government
1 Capital 609 617 623 645 659 634 701 702 725 724 738 743 764 748 951 1,018
2 Operating 3,449 3,496 3,528 3,656 3,732 3,591 3,975 3,977 4,108 4,104 4,185 4,208 4,331 4,688 4,883 5,194
Pr i vate
3 Capital 733 911 980 847 887 980 963 1,126 1,157 1,140 941 850 1,064 1,277 1,194 1,305
4 Operating 4,766 5,042 5,228 5,388 5,862 6,528 6,769 7,519 7,891 8,042 6,885 7,029 7,813 8,113 8,939 9,665
Footnotes for Table G-3
1 Line 1, Table G-2, divided by line 5, Table G-2
2 Line 2, Table G-2, divided by line 5, Table G-2
3 Line 3, Table G-2, divided by line 6, Table G-2
4 Line 4, Table G-2, divided by line 7, Table G-2
November 1990
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Appendix G—Solid Waste Expenditures G-7
Table G-4: CONVERSION OF LOCAL GOVERNMENT SOLID WASTE FISCAL YEAR TO CALENDAR YEAR FIGURES
(millions of 1986 dollars)
Source 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987
Local Government
1 Capital 613 620 634 652 646 668 702 713 725 731 741 753 756 849 984 1,018
2 Operating 3,473 3,512 3,592 3,694 3,661 3,783 3,976 4,042 4,106 4,144 4,196 4,270 4,510 4,786 5,038 5,194
Pr i vate
3 Capital 733 911 980 847 887 980 963 1,126 1,157 1,140 941 850 1,064 1,277 1,194 1,305
4 Operating 4,766 5,042 5,228 5,388 5,862 6,528 6,769 7,519 7,891 8,042 6,885 7,029 7,813 8,113 8,939 9,665
Footnotes for Table G-4
1972 calendar year expenditure equals average of 1972 and 1973 fiscal year figures from Table G-3. The same holds true for all years except 1987, which is the 1987
figure from Table G-3.
November 1990
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G-8 Environmental Investments
Table G-5: DISTRIBUTION OF EPA HAZARDOUS WASTE AND SOLID WASTE, 1981-1990
(millions of current dollars)
Source
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1
EPA Reported Hazardous Waste
157
124
127
135
151
205
252
258
254
263
307
2
Subtitle D Percent
9 .40%
0.00%
0.00%
0.00%
1 .35%
1 .44%
1 .40%
2 . 70%
4 .10%
5.57%
5 . 72%
3
Subtitle D Dollars
15
0
0
0
2
3
4
7
10
15
18
4
Hazardous Waste
142
124
127
135
149
202
248
251
243
249
290
Footnotes for Table G-5
1 From annual EPA Justification of Appropriation Estimates for Committee on Appropriations
2 From EPA Office of the Controller
3 Line 1 multiplied by Line 2
4 Line 1 minus Line 3
November 1990
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Appendix G—Solid Waste Expenditures G-9
Table G-6: DISTRIBUTION OF EPA HAZARDOUS WASTE AND SOLID WASTE, 1981-1990
(millions of 1986 dollars)
Source
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1
EPA Reported Hazardous Waste
201
147
144
146
157
205
242
237
223
223
250
2
Subtitle D Dollars
19
0
0
0
2
3
3
6
9
12
14
3
Hazardous Waste
182
147
144
146
155
202
239
231
214
210
236
4
Fixed-weighted price indexes
0.782
0.840
0.882
0.924
0.959
1 .000
1 .040
1 .090
1 .136
1 .182
1 .228
Footnotes for Table G-6
1 Line 1, Table G-5, divided by Line 4, Table G-6
2 Line 2, Table G-5, divided by Line 4, Table G-6
3 Line 3, Table G-5, divided by Line 4, Table G-6
4 Fixed-weighted price indexes described in Chapter 1
November 1990
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G-10
Environmental Investments
Table G-7: ADJUSTMENT OF PRIVATE MANUFACTURING HAZARD WASTE TO REMOVE DEPRECIATION
(millions of current dollars)
Source 1983 1984 1985 1986
1 Hazardous Waste Operating Cost 574 770 943 1,136
2 Total pollution abatement operating cost 9,078 10,003 10,676 11,108
3 Total pollution abatement depreciation 1,696 1,903 2,044 2,030
4 Mi I I ions of current dol lars 466 624 762 928
5 Fixed-weighted price indexes 0.876 0.920 0.957 1.000
6 Mi I I ions of 1986 dol lars 533 678 796 928
Footnotes for Table G-7
1 Table 4a, Operating costs by form of pollutants abated, Solid waste, Hazardous, All Industries
2 Table 4a, Operating costs by form of pollutants abated, Total, All Industries
3 Table 5a, Operating cost, By kind of cost, Depreciation, All Industries
4 Line 1 minus ((Line 1/Line 2) X Line 3)
5 Fixed-weighted price indexes described in Chapter 1
6 Line 4 divided by line 5
November 1990
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H-l
APPENDIX H
ESTIMATION OF SUPERFUND, UST, AND
FEDERAL HAZARDOUS WASTE COMPLIANCE COSTS
This appendix provides background information on the data sources, assumptions, and derivations
used to develop the cost estimates for the Superfund remediation program, the underground storage tank
(UST) technical standards and financial responsibility rules, and non-EPA Federal facility RCRA- and
Superfund-related compliance activities. The cost estimates for these programs are presented in Chapter
5.
H.l. SUPERFUND COSTS
EPA Costs
The estimates of historical EPA expenditures for Superfund activities are based on actual budget
obligations from the CERCLA Trust Fund (the Fund) for years 1981-1989, and estimated obligations for
year 1990, as reported by the EPA Office of Emergency and Remedial Response (OERR).1 Estimates
of future EPA costs are based on straight line extrapolation of historical capital and operation and
maintenance (O&M) costs using simple regression models.
Estimates of EPA capital costs include Fund obligations for all response activities except those
relating to remedial action O&M. These include costs for: 1) remedial investigation and feasibility
studies; 2) remedial design studies; 3) remedial actions; 4) other response actions such as preliminary site
evaluations, and; 5) removal actions.
Estimates of EPA O&M costs include Fund obligations for: 1) research and development; 2)
enforcement; 3) management and support; 4) assistance to other Federal agencies; and 5) remedial action
O&M activities.
H.l.2. Private Costs
Estimates of private sector costs for investigation and cleanup activities were derived using unit cost
and level of activity data from: 1) two recent EPA reports to Congress on the progress of the Superfund
program (hereafter referred to as the "1989 Progress Report" and the "1990 Progress Report");2 2) the
Regulatory Impact Analysis for proposed revisions to the National Contingency Plan published in 1989
1 "Superfund Obligations History Chart" supplied by the Office of Program Evaluation, EPA
Office of Emergency and Remedial Response.
2 (a) US EPA, Progress Toward Implementing Superfund Fiscal Year 1987: Report to
Congress, Office of Solid Waste and Emergency Response, EPA 540/8-89/003, April 1989; and (b)
US EPA, Progress Toward Implementing Superfund Fiscal Year 1989: Report to Congress, Office
and Emergency and Remedial Response, March 1990.
November 1990
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H-2
Environmental Investments
(hereafter referred to as "NCP RIA")3; and 3) activity pricing factors reported by OERR. The various
steps used to calculate private costs, including the various assumptions and projection techniques
employed are outlined below.
In the first step, unit cost estimates were identified for the following activities: removals, remedial
investigation and feasibility studies (RIs), remedial design studies (RDs), and remedial actions (RAs).
For removals, a unit cost estimate of $.525 million was used. This estimate represents the current average
cost for this activity as reported by OERR. For both RIs and RDs, a unit cost estimate of $.750 million
reported by OERR was used.
The unit cost estimates for RAs vary each year according to the mix of containment versus treatment
remedies utilized in that year. The following average capital and O&M unit costs associated with
containment and treatment remedies were obtained from the NCP RIA (p. 2-11):
Remedy
Capital Cost
Operating Cost
Containment
$ 4.483 M
.612 M
Treatment
17.237 M
.340 M
These unit costs were multiplied by estimates of the distribution of treatment (which includes
non-source controls) versus containment remedies associated with RAs conducted in past years and
expected for future RAs to derive average unit RA capital and O&M costs for each of the years
1982-2000. The actual distributions of RAs using treatment and containment remedies for the years
1982-1987 were obtained from the 1989 Progress Report (p. 41); the expected distributions for years
after 1987 were taken from the NCP RIA (p. 3-4). They are:
Year
Containment
Treatment
1982-84
57%
43%
1985
61%
39%
1986
39%
61%
1987
25%
75%
1988-2000
20%
80%
3 US EPA, Regulatory Impact Analysis in Support of the Proposed Revisions to the National
Oil and Hazardous Substances Pollution Contingency Plan, Prepared by ICF, Inc., September 1988.
November 1990
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Appendix H—CERCLA, UST, and Federal Hazardous Waste Costs
H-3
Multiplying the above distributions for each year by the unit capital and O&M costs produces the
following weighted average estimates of RA capital and O&M costs which were used for the RA cost
derivations:4
Year
Capital Cost
Operating
Cost
1982-84
$ 9.967 M
$ .495 M
1985
9.457 M
.506 M
1986
12.263 M
.446 M
1987
14.049 M
.408 M
1988-2000
14.686 M
.394 M
In the second step, actual activity levels over past years for removals, RIs, RDs, and RAs by
Potentially Responsible Parties (PRP-led) were obtained from the EPA progress reports and used to
predict future activity levels. Activity data for years 1981-1987 came from the 1989 Progress Report (pp.
22, 36, and 43); data for 1988 and 1989 came from the 1990 Progress Report (pp. 6, 20). The activity
data for years 1981-1989 were then applied in simple regression models to predict PRP-led investigation,
removals, and remediation activities for years 1988-2000. For example, actual levels of PRP-led
removals over years 1981-1987 were regressed against time. The resulting parameter estimates were then
multiplied by each of the years 1990-2000 to estimate the number of PRP-led removals for these years.
(The projections for PRP-led removals, RIs, RDs, and RAs for each of the years 1990-2000 are given
in Table H-l.)
In the third step, the actual and predicted activity levels were multiplied by the relevant unit costs
to estimate total costs PRPs for each activity over the years 1981-2000. The activity data for RIs, RDs,
and RAs for any year represent first starts in that year. Historically, these activities last well beyond one
year. For simplicity in the calculation of annual costs, however, first starts in any year are treated as being
completed in that year. This is consistent with the Fund budget obligations data used to derive EPA
costs.
In the final step, the various capital and annual costs to the private sector associated with the four
activities were summed to find the total capital and annual costs to each sector for the years 1981-2000.
Investigation and design costs, removal costs, and RA capital costs were summed to find total capital
costs over each year of the estimation period. Private O&M costs are for remedial action O&M activities.
4 The estimates for years 1988-2000 correspond to the current $15 million average remedial
action capital cost reported by the 1990 Progress Report (p. 11).
November 1990
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H-4
Environmental Investments
H.1.3. State Costs
Estimates of state capital costs for Superfund remediation are based on estimates of historical and
projected future EPA capital costs. State capital costs arise because under CERCLA and SARA states
are required to assume ten percent of Fund-led RA capital costs. Estimates of state capital costs were
derived by assuming that estimated EPA capital costs represent 90 percent of total governmental capital
costs, and state costs the remainder.
The law also required that states assume ten percent of first-year O&M costs associated with Fund-
led remedial actions, and 100 percent of O&M costs in subsequent years.5 Estimates of Fund-led RA
O&M costs were derived by multiplying estimates of actual and projected future Fund-led remedial
actions by an estimated unit cost for this activity. The estimates of historical and predicted future levels
of Fund-led remedial actions are presented in Table H-l. The state share of total Fund-led O&M costs
were derived using the cost allocation formula stated above.
H. 1.4. Non-EPA Federal Costs
The Superfund costs for non-EPA federal agencies presented in Chapter 5 represent the estimated
combined expenditures by the U.S. Department of Energy and the U.S. Department of Defense for
Superfund investigation and clean-up activities. These two agencies account for the large majority of
non-EPA Federal compliance expenditures pursuant to Superfund. The derivation of these estimates is
discussed in Section H.4.
H.2. UST TECHNICAL STANDARDS
The incremental capital and O&M costs for this recently promulgated rule were derived using
discounted per-tank costs and timing information provided by the 1988 Regulatory Impact Analysis for
UST technical standards6 (hereafter referred to as 'Technical RIA"). Costs for the rule were apportioned
over time based on requirements set by the rule and assumptions made by the Technical RIA. In all
cases, the discounting factor based on 3 percent over 30 years was eliminated to show nominal (i.e.
undiscounted) costs. The resulting per-tank costs were then used to find total industry and municipal
5 SARA amended CERCLA to provide that the costs of restoring ground and surface waters
to levels protective of human health are to be treated as part of the costs of remedial action and not
as an O&M cost allocable to states. As a result, states are only responsible for 10 percent of such
costs as opposed to 100 percent if they were considered O&M costs. In our cost calculations,
however, we attributed all post first-year O&M costs to states.
6 ICF Inc., Regulatory Impact Analysis of Technical Stqndards for Underground Storage
Tanks: Volume 1, Prepared for the US EPA Office of Underground Storage Tanks, August 1988.
November 1990
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Appendix H—CERCLA, UST, and Federal Hazardous Waste Costs H-5
costs for the estimated population of 1.717 million tanks7 affected by the rule.
The final rule, which went into effect in 1989, requires UST replacement/upgrade to meet new tank
integrity standards, the institution of release detection monitoring UST systems, and periodic tank
tightness testing. The derivation of capital costs for these requirements are discussed below. There are
two components of capital costs: tank, pipe, and component replacement, and installation of leak
detection equipment.
In order to estimate the incremental costs of the rule for replacement/upgrade of tanks, pipes, and
components, we subtracted the base case per-tank replacement costs shown in Exhibit 4-2 (p. 4-4) from
the final rule per-tank replacement costs shown in Exhibit 4-5 (p. 4-10). The total net discounted
replacement cost per tank was estimated as $6207. The rule requires replacement/upgrade of tanks and
components by the tenth year after the regulation goes into effect (i.e. 1998) unless component failure
occurs prior to that time. Failure rates for each year prior to year 10 were derived using estimates in
Exhibit 7-2 (p. 7-5), showing probabilities of high- and low-cost release events and the probability of
tank replacement or repair because of a release event. The probability that replacement would be
necessary was derived by adding the probabilities of high- and low-cost events and multiplying this by
the probability that tank replacement would be necessary if a release event occurred. During the first 5
years that the rule is in effect, a failure rate of 2.8 percent was estimated; during the following 4 years,
arate of 1.14 percent was estimated. The sum of probabilities for years 1 through 9 were subtracted from
100 to estimate the probability that tank replacement would not be required until year 10; the estimated
percentage of tanks that would be replaced in year ten was therefore 81.44 percent.8 These probabilities
were used to apportion tank replacement/ upgrade costs over the first ten years of the period.
Leak detection is required to be phased in over the first five years of the rule based on the age of
tanks. The Technical RIA assumes that half of all tanks will be fitted with observation wells, while the
other half will opt for annual tank testing until replacement or upgrade, with observation wells required
ten years thereafter. Costs for installation of observation wells were therefore divided in half: one half
was distributed over the first five years during which wells would be installed according to tank age, and
the other half applied in year 20 when the remaining tanks will be required to have wells installed. The
7 It should be noted that the UST population estimate is probably too high, resulting in an
upward bias in our cost estimate. The assumption of constant UST population used in the RIA's cost
analysis is inconsistent with the same RIA's Economic Impact Analysis, which predicts a significant
decline in the number of small petroleum retal outlets due to the impact of the rule. Recent evidence
has shown that this is indeed the case: on net, the UST poulation has been declining in recent years
at an annual rate of 2-4 percent.
8 In recent years, tank replacement has run about 4-6 percent annually. This suggests that by
the year 1997, fewer than 81 percent of the UST population will need to be upgraded or re-
placed—perhaps closer to 60 percent. In addition to replacements due to failure, many tanks are
being replaced voluntarily or in response to state requirements. Thus, year 10 (1997) replacement
costs should be lower than our estimated costs, but early tank replacement should result in higher
costs over the first nine years of the program than given by our estimates.
November 1990
-------
H-6
Environmental Investments
number of tanks required to be replaced over the 5-year phase-in period was derived using Exhibit 2-1
(p. 2-8) showing age distributions of steel- and fiberglass- reinforced tanks. Age distributions for each
type of tank were multiplied by the percentage of the total population for each given in Exhibit 2-7 (p.
2-26). For instance, tanks between 15 and 20 years of age need to be replaced in year 3 or to commence
annual monitoring. Steel tanks are the only tanks of this age and comprise 24 percent of the steel tank
population, which in turn comprise 89 percent of the total tank population. Because the RIA assumes
only half of such tanks will elect to have leak equipment installed, the percentage of tanks incurring such
costs in year 3 will be (24 percent) x (89 percent) x (50 percent) = 10.68 percent. For tanks less than 15
years old, percentages for steel tanks and for fiberglass-reinforced tanks are each calculated in this
manner and then summed. Thus, total capital costs for leak detection are apportioned among years 1
through 5 (when half of the tank population will have observation wells installed) and year 20 (when the
remaining half of the tank population will have wells installed). The total capital costs were taken from
the Technical RIA's discounted per-tank costs for leak detection equipment, shown in Exhibit 4-5 (p.
4-10) at a net discounted cost of $1091. For the sake of simplicity, the yearly distributions do not include
estimates of component failure and replacement prior to year 10. (Note that the Technical RIA estimates
36 percent of steel tanks are 20 years or older. Since the rule requires tanks 25 years and older or of
unknown age to be tested during the first year, we needed to estimate what portion of the 36 percent
represented the oldest age category. Richard Braddock of EPA estimated that 60 percent of the 36
percent were tanks 25 years or older, and 40 percent were between 20 and 25 years old.
Annual O&M costs for underground storage tanks have four components: (1) annual tank and pipe
testing; (2) annual line leak testing; (3) annual observation well monitoring; and (4) annual cathode
protection testing.
Annual tank and pipe testing may be used as a means of leak detection for tanks. As discussed
above, the other alternative for leak detection is installation of leak detection equipment, or observation
wells. Following the Technical RIA's assumption that half of the tank population will be fitted with
equipment and the other half tested annually, we derived annual tank and pipe testing costs in the
following manner.
Because leak detection requirements are based on tank age, tank and pipe testing is phased in over
the first five years at the same rate as that calculated above for installation of observation wells. Annual
testing costs differ from equipment costs because they are cumulative. For example, in year three, equip-
ment costs are incurred by 10.68 percent of the tank population. By contrast, testing costs in year three
are incurred by 26.7 percent of the tank population: 10.68 percent representing tanks for which testing
is begun in year three, 6.23 percent representing tanks for which testing began in year two, and 9.79
percent representing tanks for which testing began in year one. By year five testing is done for half of
the tank population, which continue to be tested until year 10, when all tanks must be replaced or
upgraded. Five years after replacement/upgrade, tanks are required to be tested again. The discounted
per-tank cost of annual tank and pipe testing is shown in Exhibit 4-4 as $2161. Because the costs are
cumulative, the sum of the percentages equal more than 50 percent; thus the percentages could not be
applied directly to apportion the total cost. Instead the costs are distributed proportionally based on each
year's portion of the sum of all percentages. This new group of percentages was used to apportion the
total per-tank testing costs.
November 1990
-------
Appendix H—CERCLA, UST, and Federal Hazardous Waste Costs H-7
Annual line leak testing must be in place by year two. Testing costs are assumed to begin in year
three for all tanks. The net per-tank cost of line leak testing is obtained by subtracting the base case cost
shown in Exhibit 4-1 (p. 4-3) from the rule's cost shown in Exhibit 4-4 (p. 4-8). Because the Technical
RIA calculates costs over a 30-year period, the cost of line leak testing is distributed evenly among years
three through 30.
Annual per-tank observation well monitoring costs are shown in Exhibit 4-4 of the Technical RIA.
Costs are incremented during the first 5 years as 50 percent of the tank population are fitted with wells
and monitoring begins. From years 5 through 20 costs are constant as all tanks within this 50 percent
are monitored annually. In year 20 the remaining 50 percent of tanks that had opted for annual tank
testing are required to have observation wells installed, and so from years 21 through 30, 100 percent of
the tank population must be monitored. The annual monitoring cost were therefore apportioned
according to each year's portion of the sum of all percentages.
Annual cathode protection testing for existing tanks is required for tank upgrades. The timing of
testing costs relates to two factors—the age of tanks, which determines when they will be subject to the
rule, and the type of cathodic system installed. Cathodic protection systems must be tested within 6
months of installation and every three years thereafter; impressed current cathodic systems must be
inspected every 60 days; and owners and operators must maintain records to demonstrate compliance.
In view of the unknown variability of these costs, average costs were assumed to occur on an annual
basis. The phase-in of tanks subject to testing follows the schedule for tank and pipe replacement
discussed earlier. The estimated rates of tank failure and replacement are, as noted previously, estimated
at 2.8 percent during the first 5 years; testing these new or upgraded tanks which must be cathodically
protected would therefore occur during years 2 through 6, with the total number incremented yearly as
new tanks become subject to the rule. During years 6 through 10, an estimated 1.14 percent of tanks will
fail and be replaced, requiring these tanks to be tested as well. In year 10 (1998) the remaining tanks will
be upgraded or replaced, resulting in 100 percent of the tank population being tested from year 11
through 30. The total cost for cathodic protection testing is distributed proportionally over 30 years based
on each year's portion of the sum of percentages of tanks affected for the 30-year period.
The technical standards rule also requires UST owners and operators to perform corrective action
for leaking UST systems. Corrective action costs for years 1 through 10 were derived using the RIA
estimates of corrective action probabilities and costs associated for high- and low-cost release events
given in Exhibit 7-2 (p. 7-5). The cost of corrective action for a release event is multiplied by the
probability of an event occurring, which is then multiplied by the number of tanks. The result is an
estimate of per-tank corrective action costs. These costs were calculated for high- and low-cost release
events occurring each year. Estimates of high- and low-cost events were then added to produce an
estimate of annual corrective action costs, which change at five year intervals. Due to the required
replacement of the oldest tanks during the first five years of the rule, estimated discounted per-tank
corrective action costs decline from $3,419 per year for years one through five to $659 for years six
through ten.
The Technical RIA did not provide any information concerning how much of corrective action costs
are capital costs and how much are O&M costs. To break down corrective action costs in this way, we
assumed that 85 percent of total costs would be capital costs, and the remainder O&M costs.
November 1990
-------
H-8
Environmental Investments
In the last step, capital costs for tank replacement/upgrade, leak detection equipment, and corrective
action were summed for each year over the period 1989-2000. The same was done for the various O&M
cost components. Costs were allocated to the private sector and the local government sector (which also
includes state governments) based on the estimated share of total UST systems owned by these sectors.
UST costs were not calculated for non-EPA federal facilities because such costs are included in the larger
category of Federal facility RCRA costs discussed in Section H.4, which could not be separated out.
H.3. UST FINANCIAL RESPONSIBILITY REQUIREMENTS
The Regulatory Impact Analysis for the Petroleum-containing UST financial responsibility rule of
19889 (hereafter referred to as "Financial RIA") presents discounted costs for the rule concerning UST
financial responsibility requirements. The distribution of annual costs discussed in this section is based
on the RIA estimates of costs that are incremental to those imposed by the UST technical standards rule.
Discounting factors are "backed out" for all costs shown in the RIA for purposes of this study. Because
the Financial RIA focuses on costs to retail motor fuel marketers, the costs presented in the study reflect
the same emphasis. Also, the rule affects private and municipal UST systems only. Five percent of total
estimated costs for the rule were allocated to municipalities, and the remainder to the private sector based
on the proportion of UST systems owned by each of these sectors.
The incremental discounted cost per tank for tank replacement, upgrading, and leak detection is
shown in Exhibit 4-6 (p. 4-14) as a single figure: $911. Because capital and annual costs are not
distinguished within this amount, we applied the same proportional relationship that existed between total
discounted incremental capital and annual costs in the RIA for technical standards: capital costs of $7,298
and O&M costs of $2,674 per tank. The result is an estimated discounted capital cost per tank of $665
and a discounted annual cost per tank of $246.
The capital cost is assumed to occur in year two because the rule requires all owners or operators of
USTs must demonstrate evidence of financial responsibility within 21 months of the rule's effective date.
The rule requires petroleum marketing firms owning 100 or more USTs to show evidence of financial
responsibility within 9 months of the effective date. The rule also requires non-petroleum marketing
firms with tangible net worth of more than $20 million to show evidence of financial responsibility by
the effective date of the rule. Exhibit 3-1 (p. 3-3) was used to estimate the percentage of USTs owned
by firms that fall into these categories. Using the EPA's estimated average of 4.1 USTs per retail motor
fuel outlet and the number of outlets per firm given in Exhibit 3-1 (p.3-3), we obtained an estimate of the
average number of USTs per firm for each category of firm size in Exhibit 3-1. The results showed that
approximately 0.2 percent of firms owned 100 or more USTs and are therefore subject to the earliest
compliance dates; these firms own approximately 33 percent of USTs within the retail motor fuel
marketing sector. Firms owning less than 100 USTs constitute 99.8 percent of the sector and own
approximately 67 percent of USTs.
9 US EPA, Regulatory Impact Analysis for Financial Responsibility Requirements for
Petroleum Underground Storage Tanks, Office of Underground Storage Tanks, October 1988.
November 1990
-------
Appendix H—CERCLA, UST, and Federal Hazardous Waste Costs H-9
The cost to firms resulting from financial responsibility requirements are tied to firms' ability to
obtain liability insurance. The RIA assumes that firms estimated to own 100 or fewer USTs are assigned
an aggregate liability limit of $1 million, while all other firms are assigned an aggregate liability limit of
$2 million (p. A-15). The RIA also assumes that any firm with a net worth ten times its assigned
aggregate is assumed to use the financial test and/or to guarantee its subsidiaries (p. A-15). For firms
for which assets-by-net-worth data are available, it was assumed that net worth would constitute 50
percent of the firm's assets (p. A-15). These assumptions were applied to estimate the percentage of
firms that would use the financial test, based on the distribution of total assets among firms owning retail
motor fuel outlets shown in Exhibit 3-3. The exhibit shows the number of firms and the number of
outlets owned by firms according to total asset amounts. Based on the RIA's assumptions stated above,
firms owning more than 100 USTs must have a net worth of at least $20 million in order to use the
financial test. Assuming that new worth amounts to 50 percent of total assets, firms in the three highest
asset categories appear to coincide with firms that face the early compliance dates because each owns
approximately the 33 percent of USTs in the retail petroleum marketing sector. (The estimate of firms
using the financial test is approximate because the third category of net worth ranges from $5 million to
$50 million.) Therefore, for the purposes of this analysis it was assumed that firms owning 33 percent
of USTs would be able to self-insure.
It was assumed that 67 percent of USTs within the retail petroleum marketing sector and in other
sectors would need to be covered by an outside form of insurance. According to the Financial RIA, all
USTs within the agriculture and local government sectors will need to seek insurance coverage. For the
purposes of this analysis it was assumed that these firms would be able to self insure.
H.4. FEDERAL FACILITY HAZARDOUS WASTE COSTS
Reliable estimates of future Federal facility compliance costs pursuant to RCRA and CERCLA are
unavailable at this time given the uncertainty over the magnitude of Federal corrective action and
remediation needs. However, estimates of non-EPA Federal hazardous waste-related compliance costs
were calculated using recent years' budget appropriations data and estimates of future budget needs in
this area for the two most important Federal players—the Department of Energy (DOE) and the
Department of Defense (DOD). These agencies are discussed separately below and the costs shown in
Table H-2.
H.4.1. Department of Energy Costs
Data on actual DOE budget appropriations associated with hazardous waste and Superfund activities
foryears 1989 and 1990, and estimated budgets for years 1991-1996 were obtained and used to derive
November 1990
-------
H-10
Environmental Investments
DOE cost estimates for these years.10 DOE costs in subsequent years are assumed to remain at year 1996
levels.
DOE budget expenditures reported for "Environmental Restoration" are used to represent Superfund
costs. DOE defines these as costs for "cleanup of inactive hazardous and radioactive waste sites at all
DOE facilities and some non-DOE sites for which DOE has some responsibility". DOE budget estimates
for "Waste Operations" are used to represent hazardous waste costs. DOE reports that this category of
costs involves all compliance activities relating to the treatment, storage, and disposal of hazardous
wastes. DOE also reports costs for "Corrective Activities". These costs represent compliance activities
pursuant to a variety of environmental laws, and were not used for this analysis.
H.4.2. Department of Defense Costs
Historical costs for the DOD were derived from a 1988 agency report on its environmental
restoration program.11 DOD costs for years 1990-1991 are based on actual and estimated budget
appropriations reported by the Congressional Budget Office.12 The DOD source reports costs for years
1984-1986 for two categories of activities: "Installation Restoration Program (IRP)" and "Hazardous
Waste Disposal" (HWD). DOD defines IRP costs as those to "identify, investigate, and cleanup
contamination from hazardous substances and wastes on installations and at formerly used properties".
We used costs for this program to represent Superfund costs; costs for HWD were used to represent
RCRA costs. To estimate that portion of total DOD costs directed to HWD in years 1987-1991, which
are not reported in the data source, we assumed that they were 25 percent of reported IRP costs. This
represents the average percentage of total DOD costs for HWD reported for years 1984-1986.
No information on DOD costs for years after 1991 are available. To estimate DOD costs for these
years, we assumed that total costs in future years would increase at the same annual rate shown by our
estimates of DOE costs in future years. We then assumed that 75 percent of total DOD costs projections
for future years would be for Superfund activities, and the remainder for RCRA activities, which
corresponds to the DOD cost allocations in previous years.
10 The data for DOE actual FY 1989 and 1990 appropriations were obtained from a March
1990 unpublished Draft Report by the Congressional Budget Office entitled "Federal Facility
Hazardous Waste Liabilities". The estimates of budget needs for years 1991-1996 were obtained
from: US Department of Energy, Environmental Restoration and Waste Management: Five Year
Plan, 1992-1996, June 1990.
11 U.S. Department ofDsfsmQ, Defense Environmental Restoration Program: AnnualReport
to Congress FY 1987, March 1, 1988.
12 See footnote 10.
November 1990
-------
Appendix H—CERCLA, UST, and Federal Hazardous Waste Costs
H-ll
H.4.3. Total Federal Facility Costs
For each of the years 1989-2000, the estimates of DOE and DOD Superfund costs were combined
to show Federal facility costs for this program. The same was done for DOD and DOE costs for
hazardous waste operations to show total Federal facility costs for associated with RCRA.
A further adjustment to the Federal facility costs estimates was performed to break them into capital
and O&M cost components. Since no information was available on the components of Federal facility
costs, it was assumed that 85 percent of compliance costs are capital costs, and the remainder O&M
costs. These capital and operating costs are shown in Table H-2 as well as in Tables 5-1 and 5-2 of
Chapter 5.
November 1990
-------
H-12
Environmental Investments
Table H-l: ACTUAL AND PROJECTED LEVELS OF SUPERFUND INVESTIGA-
TION AND REMEDIATION ACTIVITIES, YEARS 1980-2000
Level of Activity2
Fund-Led3 PRP-Led4
Year
Rem
RI
RD
RA
Rem
RI
RD
RA
1980
7
0
0
0
0
0
0
0
1981
28
21
5
0
0
0
0
0
1982
60
32
4
9
1
3
0
0
1983
129
112
7
9
10
11
5
2
1984
208
127
16
16
62
28
5
9
1985
196
129
19
8
86
59
10
7
1986
175
37
26
12
58
46
19
9
1987
254
127
70
35
50
56
24
19
1988
220
93
69
51
108
57
30
21
1989
236
70
63
57
86
87
94
51
1990
304
117
71
65
103
84
71
52
1991
331
121
81
72
115
95
83
58
1992
358
127
90
79
127
106
95
65
1993
386
132
99
86
139
116
107
71
1994
413
137
109
94
151
127
118
78
1995
440
143
118
101
164
137
130
84
1996
467
148
128
108
176
148
142
91
1997
495
153
137
115
188
158
159
97
1998
522
159
146
122
200
169
166
104
1999
549
164
156
130
212
180
178
110
2000
577
169
165
137
224
190
189
117
Data for the years 1980-1989 represent historical activity levels. Data for years 1990-2000 are projections based
straight-line extrapolation from actual levels.
The data represent first starts for the following activities:
Rem: Removals
RI: Remedial Investigation and Feasibility Studies
RD: Remedial Design Studies
RA: Remedial Actions
Activities inititated by EPA and funded through the Superfund.
Activities initiated and paid for by Potentially Responsible Parties.
November 1990
-------
Appendix H—CERCLA, UST, and Federal Hazardous Waste Costs
H-13
Sources:
1. Data for years 1980-1987 were taken from: US EPA, Progress Toward Implementing Superfund FY 1987: Report
to Congress, Office of Solid Waste and Emergency Response, April 1989.
2. Data for years 1989-90 were taken from: US EPA, Progress Toward Implementing Superfund Superfund FY 1989:
Report to Congress, Office of Emergency and Remedial Response, March 1990.
November 1990
-------
H-14 Environmental Investments
Table H-2: COST ESTIMATES FOR FEDERAL FACILITY COMPLIANCE WITH RCRA AND CERCLA
(millions of 1986 dollars)
Source
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Hazardous Waste Costs
Department of Energy1
NA
NA
NA
NA
NA
905
1,142
1,504
3,253
3,380
3,642
3,261
3,113
3,113
3,113
3,113
3,113
Department of Defense2
24
40
61
81
89
113
130
177
324
375
390
403
381
381
381
381
381
Total Hzrd Waste Costs
24
40
61
81
89
1,018
1,272
1,681
3,577
3,755
4,032
3,664
3,494
3,494
3,494
3,494
3,494
Superfund Costs
Department of Energy1
NA
NA
NA
NA
NA
491
620
824
1,506
1,743
1,813
1,873
1,769
1,769
1,769
1,769
1,769
Department of Defense2
91
186
246
325
353
451
521
708
1,295
1,499
1,560
1,612
1,522
1,522
1,522
1,522
1,522
Total Superfund Costs
91
186
246
325
353
942
1,141
1,532
2,801
3,242
3,373
3,485
3,291
3,291
3,291
3,291
3,291
Capital Costs3
Hazardous Waste
20
34
52
69
76
865
1,081
1,429
3,040
3,192
3,427
3,114
2,970
2,970
2,970
2,970
2,970
Superfund
77
158
209
276
300
801
970
1,302
2,381
2,756
2,876
2,962
2,797
2,797
2,797
2,797
2,797
Operating Costs3
Hazardous Waste
4
6
9
12
13
153
191
252
537
563
605
550
524
524
524
524
524
Superfund
14
28
37
49
53
131
171
230
420
486
506
523
494
494
494
494
494
Footnotes to Table H-2
1 Department of Energy (DOE), hazardous waste and Superfund costs for years 1989 and 1990 are based on actual budget appropriations data obtained from a March 1990
unpublished draft report by the Congressional Budget Office entitled "Federal Facility Hazardous Waste Liabilities". The estimates for years 1991-1996 are based on estimated
budget needs for these years reported in: US Department of Energy, Environmental Restoration and Waste Management: Five Year Plan, 1992-1996, June 1990. The reported
DOE estimates for "Waste Operations" were used to represent hazardous waste costs, and the reported estimates for "Environmental Restoration" were used to represent
CERCLA costs. It was assumed that costs in years 1997-2000 would remain at year 1996 levels.
2 Department of Defense (DOD) hazardous waste and Superfund costs for years 1984-1988 were obtained from: US Department of Defense, Defense Environmental Restoration
Program: Annual Report to Congress FY 1987, March 1, 1988. The reported DOD costs for "Hazardous Waste Disposal" (HWD) were used to represent RCRA costs, and
November 1990
-------
Appendix H—CERCLA, UST, and Federal Hazardous Waste Costs
H-15
reported costs for the "Installation Restoration Program" (IRP) were used to represent Superfund costs. DOD costs for years 1990-1991 are based on actual and estimated
budget appropriations reported by the Congressional Budget Office (see footnote 1 above). To estimate that portion of total DOD costs directed to HWD in years 1987-1991,
which were not reported by the data sources, it was assumed that they were 25 percent of reported IRP costs; this represents the average percentage of total DOD costs for HWD
reported for years 1984-1986. No information on DOD costs for years after 1991 are available. To estimate DOD costs for these years, we assumed that total costs in future
years would increase at the same annual rate shown by our estimates of DOE costs in future years. It was assumed that 75 percent of total DOD costs projections for future
years would be for Superfund activities, and the remainder for RCRA activities, which corresponds to the DOD cost allocations in previous years.
3 To disaggregate total costs into capital and O&M cost components, it was assumed that 85 percent of total costs are capital costs and the remainder O&M costs, reflecting a
rule-of-thumb commonly applied in the analysis of hazardous waste corrective action programs.
November 1990
-------
1-1
APPENDIX I
ESTIMATION OF TOXIC SUBSTANCES CONTROL COSTS
This appendix contains background data and documentation for the toxic substances control costs
presented in Chapter 6. Table 1-1 contains private capital costs, annualized capital costs, O&M costs, and
total annual costs associated with existing chemical regulation pursuant to TSCA Section 6. All of the
capital costs and most of the O&M costs are for three PCB regulations. The O&M costs also reflect certain
information provision requirements for existing chemicals.
Tables 1-2 and 1-3 contain data for costs to the private sector and EPA associated with new chemical
regulation. The EPA cost estimates are associated with TSCA Section 5 only; they are thus less than the
total EPA cost estimates presented in Chapter 6. All new chemical regulation costs reflect annual costs only
(capital costs are insignificant). Data for the years 1979-1988 were estimated by EPA staff; the annual cost
estimates for years 1990-2000 are based on linear projections of historical costs. The data presented in
Tables 1-1 through 1-3 are summarized in Table 1-4.
November 1990
-------
Environmental Investments
Table 1-1: INDUSTRY COST OF EXISTING CHEMICAL REGULATION PURSUANT TO TSCA SECTIONS 4, 6, 8 & 12
(millions of 1986 dollars)
1978
1979
1980
1981
1982
1983
1984
1985
CD
CO
3 1987
1988
1989
Capital (a) 19.50
0.00
0.00
0.00
42.94
23 .09
121 .22
119.73
116.95
3 114.13
109.74
89.29
Annua 1
Capital (b) 1.84
1 .84
1 .84
1 .84
5.89
8 .07
19.52
30.82
41 .8*
3 52.63
62.99
71 .42
0 & M (c) 85.44
102.13
74.85
70.17
71 . 75
64.91
60.48
62.56
54.5S
3 53.91
50.6
53.66
Total Annual Costs 87.28
103.97
76.69
72 .01
77.64
72.98
80.00
93.38
96.4^
1 106.54
113.59
125.08
Table I-1A: INDUSTRY COST OF EXISTING CHEMICAL REGULATION PURSUANT TO TSCA SECTIONS 4,
6, 8& 12
(millions of 1986 dollars)
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Capital (a)
89.29
89.29
89.29
89.29
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Annua 1
Capital (b)
79.85
88.28
96.70
105.13
105.13
105.13
105.13
105.13
105.13
105.13
105.13
0 & M (c)
50.25
47.85
46.14
45.11
41 .99
41 .15
40.49
39.84
39.23
38.65
38 .09
Total Annual Costs
130.10
136.13
142.84
150.24
147.12
146.28
145.62
144.97
144.36
143.78
143.22
Footnotes for Tables 1-1 andl-lA
(a) Reflects the capital costs associated with three separate regulations under TSCA Section 6 restricting the manufacture, use, and distribution of
PCBs. The estimates were derived from the RIAs for these rules and compiled by OTS staff.
(b) Reflect capital costs associated with PCB rules annualized at 7 percent over 20 years.
(c) Reflect O&M costs associated with PCB rules plus O&M costs for 24 chemical testing rules under TSCA Section 4; 34 Section 8(d) rules for
submission of unpublished health and safely studies; 39 8(a) rules for submission of production information (including the 1977 TSCA Inventory,
the 1986 Inventory Update, and the comprehensive Assessment Information Rule) and; Section 12(b) for export notification. All estimates were
derived from the RIAs for the above rules and compiled by OTS staff.
November 1990
-------
Appendix I—Cost of Controlling Toxic Substances
1-3
Table 1-2: INDUSTRY COST OF NEW CHEMICAL REGULATION PURSUANT TO TSCA SECTION 5
(millions of 1986 dollars)
1979
1
PMN Fi I ing Costs (a) 0.05 1 .77
5(E) SNUR w/o testing (b) 0.00 0.01
5(E) SNUR with Ecotox testing (c) 0.00 0.03
5(E) SNUR with Health testing (d) 0.00 0.07
Total Annual Costs 0.05 1.87
33
00
07
12
52
54
01
6.76
0.05
0.23
0.27
7.32
5.95
10
12
15
32
7 .05
18
11
14
7.95
23
16
20
54
20
11
15
53
11
65
12
19
23
18
Table I-2A: INDUSTRY COST OF NEW CHEMICAL REGULATION PURSUANT TO TSCA SECTION 5'
(millions of 1986 dollars)
1
1991
1992
1993
1995
1997
2000
PMN Fi I i ng Costs (a)
5(E) SNUR w/o testing (b)
5(E) SNUR with Ecotox testing (c) --
5(E) SNUR with Health testing (d) --
Total Annual Costs 11.92
13.01
14.10 15.1
16.27 17.36
19.53 20.61
21 .70 22.79 23.87
Footnotes for Tables 1-2 andI-2A
* Data for PMNs and SNURs for years 1989-2000 were not supplied by OTS staff, and projections were made for the totals of these actions only and not for
each individual category. The total annual costs associated with all PMNs and SNURs for the years 1989-2000 were projected by regressing the total annual
costs for these categories over the years 1972-1988 against time.
(a) Reflect annual costs of filing pre-manufacturing (PMN) review notices prior to the manufacture, process, or import of new chemicals not on the TSCA
Inventory. Estimates were calculated by OTS staff based on an average cost of $4,700 per PMNS submission.
(b) Reflect annual costs of Significant New Use Rule (SNUR) requirements that do not require additional testing. Estimates were derived from economic
analyses and compiled by OTS staff.
(c) Same as b except include requirements for testing of ecological effects (Ecotox).
(d) Same as b except include requirements for Ecotox testing.
November 1990
-------
1-4 Environmental Investments
Table 1-3: EPA COST OF NEW CHEMICAL REGULATION PURSUANT TO TSCA SECTION 5
(millions of 1986 dollars)
1979
1980
1981
1
382 1983
1984
1985
1986
1987
1988
PMN Fi 1 i ng Costs (a)
0.00
4.43
8.37
11
39 16.98
14.95
1 7 71
19.95
20.24
26.73
5(E) SNUR w/o testing
(b)
0.00
0.05
0.00
0
04 0.21
0.40
0.71
0.91
0.81
0.47
5(E) SNUR with Ecotox
test
n9
(c) 0.00
0.02
0.16
0
07 0.60
0.28
0.25
0.42
0.28
0.50
5(E) SNUR with Health
test
ng
(d) 0.00
0.02
0.16
0
07 0.60
0.28
0.25
0.42
0.28
0.50
Total Annual Costs
0.00
4.52
8.68
11
59 18.40
15.90
18.93
21 70
21 .60
28.19
Table 1-3A: EPA COST OF NEW CHEMICAL REGULATION PURSUANT TO TSCA SECTION 5*
(millions of 1986 dollars)
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
PMN Fi I ing Costs (a)
5(E) SNUR w/o testing (b)
5(E) SNUR with Ecotox testing (c) --
5(E) SNUR with Health testing (d) --
Total Annual Costs 30.18 32.95 35.72 38.49 41.25 44.02 46.79 49.56 52.33 55.09 57.86 60.63
Footnotes for Tables 1-3 andI-3A
* Data for PMNs and SNURs for years 1989-2000 were not supplied by OTS staff, and projections were made for the totals of these actions only and not for
each individual category. The total annual costs of reviewing all PMNs and SNURs for the years 1989-2000 were projected by regressing the total annual
costs for these categories over the years 1972-1988 against time.
(a) Reflect annual costs of reviewing pre-manufacturing (PMN) review notices prior to the manufacture, process, or import of new chemicals not on the TSCA
Inventory. Estimates were calculated by OTS staff based on an average cost of $11,800 per PMN submission reviewed.
(b) Reflect annual costs of imposing Significant New Use Rule (SNUR) requirements that do not require additional testing. Estimates were derived from
economic analyses and compiled by OTS staff.
(c) Same as b except include requirements for testing of ecological effects.
(d) Same as b except include requirements for Ecotox testing.
November 1990
-------
Appendix I—Cost of Controlling Toxic Substances 1-5
Table 1-4: SUMMARY TABLE FOR TSCA
(millions of 1986 dollars)
1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986
Capital Costs
Pr i vate
20
0
0
0
43
23
121
120
117
Operating Costs
EPA for New Chem
0
5
9
12
18
16
19
22
Pr i vate
85
102
77
74
76
72
67
70
63
Table I-4A: SUMMARY TABLE FOR TSCA
(millions of 1986 dollars)
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Capital Costs
Private 117
114
110
89
89
89
89
89
0
0
0
0
0
0
0
Operating Costs
EPA for New Chem 22
22
28
30
33
36
38
41
44
47
50
52
55
58
61
Private 63
62
62
66
63
62
61
61
59
60
60
60
61
61
62
Footnotes for Tables 1-4 andI-4A
Private Capital Costs: From Tables 1-1 and 1-1 A, first line.
EPA: Cost of new chemical regulation only from Table 1-3, last line.
Private Operating Costs: Sum of "O & M" line from Tables 1-1 and 1-1A and the last line of Tables 1-2 and I-2A.
November 1990
-------
J-l
APPENDIX J
ESTIMATION OF PESTICIDE CONTROL COSTS
This appendix provides background data and documentation for the individual components of
pesticide control costs presented in Chapter 6. The data reflect annual operation, maintenance, and
administrative costs only (capital costs are insignificant) for the years 1972-2000. Costs are
provided for four affected sectors: private industry, states, EPA, and the U.S. Department of
Agriculture (USDA).
The private industry costs include costs to pesticide registrants (i.e. manufacturers) for
compliance with various regulatory requirements, including research, packaging, disposal, and
storage, as well as costs due to pesticide cancellations and suspensions. The private industry costs
also include costs to agricultural pesticide users for farmworker safety and applicator
certification/training. The time-series estimates for many of the cost categories are based on one
data point for year 1980 derived from: Regulatory Impact Analysis: Data Requirements for
Registering Pesticides Under FIFRA (1982). For the most part, estimates for years 1972-1980 are
assumed to increase linearly from zero in year 1972 to the RIA estimate for year 1980. Estimates
for years beyond 1980 are then either assumed to remain constant at 1980 levels or to grow annually
by some fixed factor. For certain cost categories, estimates for years 1990-2000 are assumed to
increase substantially due to new requirements that are expected to be promulgated in the near
future. In most cases, these new requirements reflect new provisions pursuant to the 1988 FIFRA
amendments.
Costs to states include costs associated with applicator certification and training, farmworker
safety, and enforcement. U.S. Department of Agriculture (USDA) costs include those associated
with assessing pesticide residues in food products, and applicator certification and training. EPA
costs are primarily for administering FIFRA abatement and control programs, but also include grants
made to states for applicator certification and training, and enforcement.
It should be noted that regulatory initiatives for controlling pesticides in groundwater are still
in the developmental stage. Should EPA adopt an aggressive policy in this area, future costs could
be considerably greater than those shown.
November 1990
-------
J-2
Environmental Investments
Table J-l: PRIVATE COMPLIANCE COSTS FOR FIFRA
(millions of 1986 dollars)
1972
1973
1974
1975
1976
1977
1$
--J I
CO 1
1979
1
CO i
O i
1
581
1$
582
1$
CO i
W 1
1$
CO i
i
1
CO i
CJ1 1
1986
F1FRA Re 1ated R&D (a)
NACA F i rms
38.90
47
72
54
33
59
59
77
74
101
01
109
18
113
87
125
67
121
03
133
49
141
59
140
28
211
50
186.00
Other Firms
4.58
4
34
6
04
5
59
7
07
10
10
11
08
11
68
12
03
12
22
13
81
14
38
13
82
21
56
19.00
Child res. packaging (b)
0.00
0
52
0
97
1
34
1
70
2
02
2
28
2
45
2
27
3
41
4
46
5
50
6
44
7
34
7.64
Reg. of establ ishments (c)
0.00
0
85
1
57
2
16
2
74
3
27
3
69
3
96
4
14
3
94
3
86
3
86
3
86
3
87
3.92
Books/records (d)
0.00
2
23
4
12
5
72
7
24
8
64
9
73
10
48
10
96
10
43
10
21
10
20
10
19
10
25
10.38
Inspections (e)
0.00
0
09
0
16
0
20
0
27
0
32
0
36
0
38
0
40
0
38
0
37
0
38
0
37
0
37
0.38
Disp/Storage (exRCRA) (f)
21 .62
21
34
20
62
19
89
19
66
19
51
19
10
18
36
1 7
51
16
65
16
31
16
31
16
29
16
37
16.58
Farmworker Safety (g)
0.00
0
00
22
13
20
48
19
43
18
52
18
99
7
52
16
04
14
67
14
96
14
38
14
88
15
40
16.00
Applic. cert./training (h)
0.00
0
00
0
00
0
00
79
51
67
34
61
71
52
55
44
12
46
45
46
03
46
46
47
82
49
28
52 .00
Fees (registration) (i)
0.00
0
00
0
00
0
00
0
00
0
00
0
00
0
00
0
00
0
00
0
00
0
00
0
00
0
00
0.00
Cance11 at i ons/Suspens i ons
0)
past
0.00
32
71
29
52
24
97
45
39
42
51
110
30
160
91
121
51
100
90
72
51
47
05
111
59
40
26
29.95
future
0.00
0
00
0
00
0
00
0
00
0
00
0
00
0
00
0
00
0
00
0
00
0
00
0
00
0
00
0.00
Totals
65.10
109
80
139
46
139
94
260
74
273
23
346
41
392
16
354
67
330
09
316
00
300
10
365
54
376
19
341 .85
Table J-l A: PRIVATE COMPLIANCE COSTS FOR FIFRA
(millions of 1986 dollars)
1991
1992
1993
1995
1997
2000
FIFRA Re Iated R&D (a)
NACA F i rms
186.00
167
15
179
27
198
88
220
35
243
70
269
84
298
79
330
53
366
01
405
23
449
11
497
67
550
89
609.71
Other Firms
19.00
16
43
7
74
19
61
22
41
24
28
27
08
29
88
32
68
36
41
40
15
44
82
49
49
55
09
60.69
Child res. packaging (b)
7 .64
7
88
8
12
8
42
8
52
8
62
8
72
8
83
8
93
9
04
9
15
9
26
9
37
9
48
9.60
Reg. of establ ishments (c)
3 .92
3
94
3
96
3
96
3
96
3
96
3
96
3
96
3
96
3
96
3
96
3
96
3
96
3
96
3.96
Books/records (d)
10.38
10
43
10
48
10
48
10
48
10
48
10
48
10
48
10
48
10
48
10
48
10
48
10
48
10
48
10.48
Inspections (e)
0.38
0
38
0
38
0
38
0
38
0
38
0
38
0
38
0
38
0
38
0
38
0
38
0
38
0
38
0.38
Disp./Storage (exRCRA) (f)
16.58
16
66
16
74
1 7
41
20
02
22
22
24
67
27
38
30
39
33
73
37
44
41
56
46
13
51
21
56.84
Farmworker Safety (g)
16.00
15
46
14
94
88
70
154
06
154
06
154
06
154
06
154
06
154
06
154
06
154
06
154
06
154
06
154.06
Applic. cert./training (h)
52 .00
52
17
51
35
54
15
56
02
85
90
56
02
57
89
59
76
61
62
63
49
65
36
67
23
69
09
70.96
Fees (registration) (i)
0.00
0
00
0
00
37
25
32
96
13
59
14
14
14
71
15
29
15
91
16
55
1 7
21
0
00
0
00
0.00
Cance11 at i ons/Suspens i ons
0)
past
29.95
88
15
67
10
48
03
38
28
28
94
19
61
9
34
0
00
0
00
0
00
0
00
0
00
0
00
0.00
future
0.00
0
00
0
00
65
36
268
91
397
76
489
26
543
42
560
22
560
22
560
22
560
22
560
22
560
22
560.22
Totals
341.85
378
64
370
08
552
64
836
35
993
89
1078
22
1159
10
1206
69
1251
84
1301
11
1356
42
1398
99
1464
87
1536.91
November 1990
-------
Appendix J—Cost of Controlling Pesticides
J-3
Footnotes for Table J-l and J-l A
Research and Development costs (include regulation-related expenditure on toxicology, metabolism, environmental chemistry, residue analysis, and registration). Estimates for
National Agricultural Chemicals Association (NACA) firms for the years 1972-1987 are based on annual surveys of basic producers, performed by NACA. Estimates for NACA
firms for the years 1988-2000 are based on an assumed 10.75% annual rate of growth over 1987 base level. Estimates for other firms are based on the assumption that firms which
are not part of the NACA incur an amount equal to about 10 percent of the R&D costs incurred by the NACA firms.
All estimates are based on two data points: one for year 1980 that was estimated in Regulatory Inpact Analysis: Data Requirements for Registering Pesticides under FIFRA (1982),
p. 97 (hereinafter referred to as the 1982RIA), and one for 1985 based on OPP staff calculation of full compliance costs. Estimates for years 1972-1979 are assumed to start at zero
and increase linearly until the 1980 estimate is reached. Estimates for 1981 -1985 are assumed to increase linearly from the 1980 base estimate until the OPP estimate of full compliance
is reached in 1985. For years 1986-2000, costs are assumed to rise by 1.2% per year, reflecting growth in the number of products requiring packaging.
(d) and (e) Estimates are based on the estimate for year 1980 given in the 1982 RIA. Estimates for years 1972-1979 are assumed to start at zero and increase linearly until the 1980
estimate is reached. Estimates for years 1980-2000 are assumed to remain constant at 1980 levels.
Same as footnote C, except that costs for years 1990-2000 are assumed to increase over 1989 levels by 11.5% anually to reflect expanded requirements for disposal and storage
expected to be implemented within the next several years.
Based on EPA Office of Pesticide Programs (OPP) staff estimates. Estimates for years 1989 and 1990 reflect new requirements pursuant to a proposed rule to revise worker protection
standards (53 FR 25970; 7/8/88) derived from the RIA for this rule. Estimates for 1991-2000 assumed to remain constant at year 1990 estimated level.
Estimate for year 1980 comes from the 1982 RIA. Estimates for years 1976-1979 and 1981-2000 based on OPP staff estimates. Estimate for year 1991 reflects expanded certification
and training expected to be promulgated within the next few years, which is expected to significantly raise compliance costs in year 1991 only. Estimates for 1992-2000 based on
1990 estimate plus an assumed annual 3% growth rate.
Reflect two fees pursuant to the 1988 FIFRA amendments: 1) Product registration and maintenance fee; and 2) Active Ingredient registration fee. The product registration fee is an
annual fee for each registered product that runs for nine years only, beginning in 1989. Cost estimates for this fee are based on an assumed 18,000 product registrants in 1989, and
an additional 18,000 in 1990. The Active Ingredient (AI) fee is a one-time fee for each AI. Cost estimates for this fee are based on a total of 419 AIs, 60% of which pay fees in 1989,
and the remainder in 1990.
Reflect costs for past and expected future pesticide cancellations/suspensions. Data and documentation for individual pesticide actions are presented in Tables J-1B and J-1C.
November 1990
-------
J-4 Environmental Investments
Table J-1B: PESTICIDE CANCELLATION/SUSPENSION COSTS, 1972-86
(millions of 1986 dollars)
1972 1973
1974
1975
1976
1977
1978
1979
1
980
1981
1982
1983
1
984
1985
1986
Past Actions
DDT
32 . 71
29.52
24.97
20.21
14.90
9.91
5.37
A/D-C/H
25.18
21 .20
18.23
15.99
12.
29
7.60
3 . 71
Mercury
Pai nt
6.41
4.81
3.49
1 .
76
Other Uses
9.18
7.37
4 .
96
2.44
Kepone
Ch1orobenz i 1 ate
0
.27
0.23
0.21
0.17
0
.14
0.11
0.83
End r in
DBCP
68.18
63.58
2
42 .
.94
89
2.48
42 .05
2 .01
30.69
1 .55
19.62
1
9 .
.14
57
0.72
0.32
2,4,5T/Si 1 vex
65.11
56.
40
46.09
35.89
25 . 71
16.
79
EDB
Soi 1
51
.01
39.43
28.80
Fru i t
32 .
94
Total Past Actions
0.00 32.71
29.52
24.97
45.39
42.51
110.30
160.91
121
.51
100.90
72.51
47 .05
Ill
.59
40.26
29.95
Footnotes for Table J-1B
Based on EPA Office of Pesticide Programs (OPP) staff estimates.
November 1990
-------
Appendix J—Cost of Controlling Pesticides J-5
Table J-1C: PROJECTED PESTICIDE CANCELLATION/SUSPENSION COSTS, 1986-2000
(millions of 1986 dollars)
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Past Act i ons (a)
Chlorobenzi late 0.83
Endrin 0.32
EDB
Soi I 28.80
Fru i t
D i noseb
Total Past Actions 29.95
Future act i ons
Bromoxyn i I (a)
Other future actions (b)
Total Future Actions
Totals 29.9!
Footnotes for Table J-1C
(a) Based on EPA Office of Pesticide Programs (OPP) staff estimates.
(b) Future costs are based on an assumed three actions per year at an initial cost of $200 million each in 1988 dollars (1 major at $100M, 1 intermediate at $75M, 1 minor at $25M). Initial
costs for each action are assumed to decrease linearly to zero in six years.
0.62
18.36
15
0.43
0.37
9.34
56.96
67.10
0.22
0.19
47.62
48 .03
19.61
19.61
9.34
9.34
65.36 82.17 61.62 41.08 20.54
1
74 336.13
91 397.76
18 522
65.36
5 88.15 67.10 113.39 307.19 426.70 508.87
560.22 560.22 560.22 560.22 560.22 560.22 560.22
26 543.42 560.22 560.22 560.22 560.22 560.22 560.22 560.22
552.75 560.22 560.22 560.22 560.22 560.22 560.22 560.22
November 1990
-------
J-6
Environmental Investments
Table J-2: STATE COMPLIANCE COSTS FOR FIFRA
(millions of 1986 dollars)
Certification/Training (a)
Enforcement (b)
Farm Worker Safety (c)
Cancellation/Suspensions (d)
Product Registration (e)
Registration Fees (f)
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
0.00
0.00
0.00
0.00
0.00
0.00
0.00
5.55
5.21
3.67
3.11
2.21
2.23
2 . 77
2.50
0.46
0.43
0.40
0.37
0.35
2.53
12.03
19.42
17.51
14.55
14.96
14.38
13.82
14.99
14.00
0.00
0.00
0.00
0.37
0.35
0.34
0.32
0.44
0.40
0.37
0.35
0.55
0.53
0.51
0.50
Totals
0.43
0.74
0.71
12.34 25
23.13 1
18.41 17.15 1
18.28 17
Table J-2A: STATE COMPLIANCE COSTS FOR FIFRA
(millions of 1986 dollars)
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
Certification/Training (a) 2.50 2.61 2.52 3.27 2.52 3.27 2.61 2.71 2.80 2.89 2.99 3.08
Enforcement (b) 14.00 12.66 12.23 12.32 12.89 13.45 13.91 14.38 14.94 15.50 16.62 16.81
Farm Worker Safety (c) 0.50 0.48 0.47 7.00 3.27 3.27 3.27 7.47 3.73 3.73 3.73 3.73
Cancellation/Suspensions (d)
Product Registration (e)
Registration Fees (f) 0.00 0.00 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93
Totals 17.00 15.75 16.15 23.53 19.61 20.92 20.73 25.49 22.41 23.06 24.28 24.56
3.17
17.55
1999 2000
3.27 3.36
18.21 18.86
4.67 4.67
29.13 26.14
26.89
Footnotes for Tables J-2 and J-2A
(a) Estimated at 1.5 times the amount of EPA grants (i.e. states assume 60 percent of total costs).
(b) For years 1972 -1976: staff estimate of $200,000 is used.
For years 1977 - 2000: estimated at 1.5 times the amount of EPA grants (i.e. states assume 60 percent of total costs).
(c) Costs are based on EPA Office of Pesticide Programs (OPP) staff estimates.
(d) Cancellation/Suspension—minor, not estimated.
(e) Product Registration—not estimated.
(f) Registration Fees—very minor—$1 million/year. Years 1988-1997 only; reflecting nine-year period for fees pursuant to the 1988 FIFRA amendments.
November 1990
-------
Appendix J—Cost of Controlling Pesticides
Table J-3: EPA PESTICIDE PROGRAMS COSTS
(millions of 1986 dollars)
J-7
1972
26.25
1973
32.95
1974
34.65
1975 1976
35.70 52.16
1977
1
1979
FIFRA Appropriations (a)
Enforcement Grants (b)
Cert i fi cat i on/
Tra i n i ng Grants (c)
TotaIs
26.25 32.95 34.65 35.70
13.25
65.41
54.61
1 . 70
64.39
7.99
3.64
50.27
57.34
12.91
5.11
75.36
52 . 74
11 .70
69.25
50.31
9.68
3.55
63.53
39.53
10.01
2.88
52.42
35.88
9.62
2.10
47.61
37.86
9.25
2.13
49.23
45.83
2.67
41 .02
9.32
2.50
52.84
Table J-3 A: EPA PESTICIDE PROGRAMS COSTS
(millions of 1986 dollars)
1991
49.21
8.96
3.27
61 .44
1992
51 .17
9 .06
2.52
62 . 75
1993
1995
1997
1
2000
FIFRA Appropriations (a)
Enforcement Grants (b)
Cert i fi cat i on/
Tra i n i ng Grants (c)
TotaIs
41 .02 41 .02
9.32 8.41
2.50 2.42
52.84 51.85
18.20 100.11 103.32
8.12 8.22 8.59
2.43 2.80 2.43
)8 . 75 111 .13 114.34
53.22
9.62
2.61
65.45
55.37
9.99
2 . 71
68 .07
57.61
10.36
2.80
70.77
59.94
10.74
2.89
73.58
62.37
11 .20
2.99
76.56
11 .67
3 .08
79.65
67.51
12.14
3.17
70.21
12.61
3.27
Footnotes for Tables J-3 and J-3A
(a) Estimates for years 1972-1987 are based on actual OPP budget data. Estimates for years 1988-1990 are based on actual OPP appropriations data that includes $6.8 million in disposal funds
for FY 88 and $60 million in disposal funds for FY89 andFY90. Estimates for years 1991-2000 are based on 1989 base appropriations (i.e. without disposal funds) plus an assumed annual
increase of four percent.
(b) Represent grants to states for FIFRA enforcement. Estimates for years 1977-1989 are based on actual OPP budget data. Estimates for years 1990-2000 are based on 1989 costs, plus an
assumed annual growth of four percent.
(c) Represent grants to states for training and certification of pesticide applicators. Estimates for years 1976-1989 are based on actual OPP budget data. Estimates for years 1988-1991 are based
on estimates from a draft RIA for new regulations currently under development. Estimates for years 1992-2000 are based on 1990 estimate plus an annual increase of $0.9 million.
November 1990
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J-8
Environmental Investments
Table J-4: NON-EPA FEDERAL (USDA ONLY) COMPLIANCE COSTS
(millions of 1986 dollars)
1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986
Certification/Training (a)
(in-kind matching funds) 0.00 0.00 0.00 0.00 13.25 8.08 3.64 5.11 4.81 3.55 2.88 2.10 2.13 2.67 2.50
NPIAP (b) 0.00 0.00 0.00 0.00 0.00 12.63 11.87 10.22 8.69 7.95 6.90 6.64 6.38 6.16 5.50
Totals 0.00 0.00 0.00 0.00 13.25 20.71 15.51 15.33 13.50 11.49 9.78 8.74 8.50 8.83 8.00
Table J-4A: NON-EPA FEDERAL (USDA only) COMPLIANCE COSTS
(millions of 1986 dollars)
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Certification/Training (a)
(in-kind matching funds) 2.50 2.42 2.43 2.80 2.43 3.27 2.52 2.61 2.71 2.80 2.89 2.99 3.08 3.1 7 3.27
NPIAP (b) 5.50 5.31 4.67 4.67 4.67 4.67 4.67 4.67 4.67 4.67 4.67 4.67 4.67 4.67 4.67
Totals 8.00 7.73 7.10 7.47 7.10 7.94 7.19 7.28 7.38 7.47 7.56 7.66 7.75 7.84 7.94
Footnotes for Tables J-4 and J-4A
(a) In-kind matching funds provided by USDA to support certification and training programs equal in cost to EPA's grants in this area (OPP staff estimate).
(b) National Pesticide Impact Assessment Program - program of USDA. Staff estimates.
November 1990
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