Analysis - The Institute for Southern Studies

Exhibit 5A-16
Per-Site Groundwater Contamination Remediation Costs*
Cost element category 25 th percentile “early costs” 75 th percentile “later costs”
Capital Costs $6,075,900 $21,195,000
Annual O&M $98,910 $1,413,000
O&M at 3% discount rate** $1,978,242 $28,260,605
O&M at 7% discount rate** $1,239,522 $17,707,453
Total cost at 3% $8,054,142 $49,455,605
Total cost at 7% $7,315,422 $38,902,453
Notes:
*Cost data from Exhibits 3 and 4 in EPA “Cost Analyses for Selected Groundwater Cleanup
Projects: Pump and Treat Systems and Permeable Reactive Barriers,” Office of Solid Waste &
Emergency Response, EPA-542-R-00-013. February 2001 at:
http://www.epa.gov/tio/download/remed/542r00013.pdf
**O&M costs were capitalized over 30 years at both a 3% and 7% discount rate for use in the
two estimates. This was done to simplify spreadsheet calculations.
For the remaining sites expected to require remediation, but lacking groundwater monitoring requirements, EPA assumed discovery of
contamination would take longer. That is, CCR contamination would have migrated for some number of years, resulting in a larger
groundwater plume to remediate, or more extensive remediation. EPA assigned these sites the 75 th percentile remediation costs as the midpoint
of the top half of costs. Since the first percentile time to peak results for unlined surface impoundments is six years, it is assumed that no
discoveries and cleanups will be made in the first six years for these sites (three years once the two years for state adoption and one year for
groundwater monitoring are considered). The costs are thus spread evenly over the remaining 72 years. The present value of these
remediations, accounting for the slow, but continued discovery of contaminated sites, is presented in Exhibit 5A-17 below. Further discussion
of the discounted remediation costs for each year is presented in Appendix K10.
Exhibit 5A-17
Present Value of Future Groundwater Remediation Costs from CCR Contamination
($ millions present value over 50-years)
Discount Rate Subtitle C Subtitle D Subtitle D’ Baseline
@ 3% $96 $1,016 $1,302 $1,587
@ 7% $39 $336 $420 $504
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