Analysis - The Institute for Southern Studies

Summary Exhibit 7
Comparison of Regulatory Benefits to Costs
Scenario #3 – No Impact on Future Annual CCR Beneficial Use
($Millions @2009$ Prices and @7% Discount Rate over 50-Year Future Period-of-Analysis 2012 to 2061)
Subtitle C
“Special Waste”
Subtitle D
(version 2)
Impact Element
Subtitle “D prime”
A. Present Values:
1. Regulatory Costs (1A+1B+1C) $20,349 $8,095 $3,259
1A. Engineering Controls $6,780 $3,254 $3,254
1B. Ancillary Costs $1,480 $5 $5
1C. Conversion to Dry CCR Disposal $12,089 4,836 $0
2. Regulatory Benefits (2A+2B+2C+2D): $2,732 to $17,702 $1168 to $7,965 $593 to $3,983
2A. Monetized Value of Human Cancer Risks Avoided $504 (726 cancer risks) $207 (296 cancer risks) $104 (148 cancer risks)
2B. Groundwater Remediation Costs Avoided $466 $168 $84
2C. CCR Impoundment Failure Costs Avoided $1,762 to $16,732 $793 to $7,590 $405 to $3,795
2D. Induced Impact on CCR Beneficial Use $0 (no change) $0 (no change) $0 (no change)
3. Net Benefits (2-1) ($17,617) to ($2,647) ($6,927) to ($130) ($2,666) to $724
4. Benefit/Cost Ration (2/1) 0.134 to 0.870 0.144 to 0.984 0.182 to 1.222
B. Average Annualized Equivalent Values:*
1. Regulatory Costs (1A+1B+1C) $1,474 $587 $236
1A. Engineering Controls $491 $236 $236
1B. Ancillary Costs $107 $0.36 $0.36
1C. Dry Conversion $876 $350 $0
2. Regulatory Benefits (2A+2B+2C+2D): $198 to $1,283 $85 to $577 $43 to $289
2.A Monetized Value of Human Cancer Risks Avoided $37 $15 $8
2.B Groundwater Remediation Costs Avoided $34 $12 $6
2.C CCR Impoundment Failure Cleanup Costs Avoided $128 to $1,212 $57 to $550 $29 to $275
2D. Induced Impact on CCR Beneficial Use $0 $0 $0
3. Net Benefits (2-1) ($1,277) to ($192) ($502) to ($9) ($193) to $52
4. Benefit/Cost Ration (2/1) 0.134 to 0.870 0.145 to 0.983 0.182 to 1.225
* Note: Average annualized equivalent values calculated by multiplying 50-year present values by a 50-year 7% discount rate “capital recovery
factor” of 0.07246.
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