Analysis - The Institute for Southern Studies

Exhibit 5C-1
Estimate of Annual Materials Cost Savings Benefit of CCR Generated by the Electric Utility Industry for Beneficial Use in Industrial Applications
A B C D E F (C x E) G H (C x G) I (H – F)
Item Industry Application 2005 CCR
beneficial use
(million tons)
% of CCR
beneficial use
market
2005 average
market price paid
electric plants*
($/ton)
Implied annual CCR
sales revenues to
electric utility plants
1 Construction concrete ingredient
NAICS code 3273
1A Direct ingredient: substitute for portion
of Portland cement ingredient in
concrete mfg
NAICS code 3273
1B Indirect ingredient: raw feed blended
with limestone or shale to make
cement clinker to be ground into
cement for concrete mfg
NAICS code 3273
2 Construction structural fill for building
foundations and embankments
NAICS code 238910
3 Construction wall board
NAICS code 327420
4 Waste stabilization (substitute for lime)
NAICS code 5622
5 Blasting grit
NAICS code 212322
6 Roofing granules
Included with Included with
NAICS code 324122
grit (row 5) grit (row 5)
7 Minor uses (n=7)** 8.04 16.2% $3 to $20 $24.1 to $160.8
million
Column totals (2005) = 49.61 100%
2005 avg price
for substitute
material
($/ton)
2005 implied
annual
alternative
materials cost
Implied annual
US national cost
savings w/CCR
beneficial uses
See 1A + 1B See 1A + 1B See 1A + 1B See 1A + 1B See 1A + 1B See 1A + 1B See 1A + 1B
16.35 33.0% $0 to $45 $0 to $735.8 million $80 $1,308 million $572.2 to $1,308
million
4.22 8.5% $0 to $45 $0 to $189.9 million $80 $337.6 million $147.7 to $337.6
million
8.35 16.8% $1 $8.35 million $3 $25.05 million $16.7 million
8.18 16.5% $0 to $8 $0 to $65.4 million $4.5 to $12 $36.8 to $98.2
million
$32.8 to $36.8
million
2.84 5.7% $15 to $25 $42.6 to $71.0 million $66 $187.4 million $116.4 to $144.8
million
1.63 3.3% Not reported Not reported Not reported Not estimated Not estimated
Not reported Not estimated Not reported Not estimated Not estimated
Implied
average (F/C)
= $3
$75 to $1,231 million
(best estimate**** =
$149 million)
$5 to $83 $40.2 to $667.3
million
$1,935 to
Implied
$2,624 million
average (H/C)
(best est.**** =
= $40
$1,979 million)
2008 updated estimates = 62*** $177 million $2,477 million
$16.1 to $506.5
million
$1,830
$2,300 million
($37 per ton)
Explanatory notes:
Source: Data in columns C, E, and G are from “Waste and Materials-Flow Benchmark Sector Report: Beneficial Use of Secondary Materials – Coal Combustion Products,”
EPA report nr. 530-R-08-003, prepared by Industrial Economics Inc., 95 pages, 12 Feb 2008 at http://www.epa.gov/osw/partnerships/c2p2/pubs/benuse07.pdf
* Average price includes “free on board” (FOB) shipping and insurance costs paid by the supplier from the point of manufacture to a specified destination.
** Minor uses include: (1) agricultural soil amendment for flue gas desulfurization gypsum, (2) road base foundation layer underlying pavements for bottom ash, (3) mine
reclamation material as substitute for soil, (4) mineral filler in asphalt, (5) soil stabilizer, (6) snow and ice control substitute for sand, and (7) mining.
*** 2009 update estimated tonnage (Column C above) derived in Exhibit 5C-2 of this RIA; 2009:to2005 multiplier = 62.09/49.61 = 1.25.
**** “Best estimate” in Column F based on sum of coal-fired electric plant CCR “byproduct sales revenues” from the DOE-EIA F767_PLANT database for 233 plants.
“Best estimate” in Columns H and I derived by numerical interpolation of the ranges displayed based on the proportionate best estimate and range of Column F.
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