Analysis - The Institute for Southern Studies

Exhibit 6B
Comparison of Regulatory Benefits to Costs Under Scenario #1 – Induced Beneficial Use Increase @3% Discount Rate
($Millions in 50-Year Present Values @2009$ Prices)
Costs Subtitle C “Special Waste” Subtitle D (version 2) Subtitle “D prime”
1. Engineering Controls $12,640 $6,067 $6,067
2. Ancillary Costs $2,759 $9 $9
3. Dry Conversion $22,538 $9,016 $0
Total Costs (1+2+3) = $37,938 $15,092 $6,076
Benefits
4. Groundwater Protection Benefits* $3,316 $1,321 $661
Count of Human Cancer Risks Avoided** 726 296 148
Monetized Value of Human Cancer Risks Avoided $1,825 $750 $375
Groundwater Remediation Costs Avoided $1,491 $571 $286
5. Induced Impact on CCR Beneficial Use Econ. benefits Social benefits Econ. benefits Social benefits Econ. Benefits Social benefits
Scenario #1 @3% discount rate = $9,806 $149,001 $3,922 $59,600 $1,569 $23,840
6. CCR Impoundment Failure Costs Avoided
If Based on Extrapolated Recent Failure Cases $3,124 $1,406 $719
If Based on @ 10% Future Failures $13,046 $5,918 $2,959
If Based on @ 20% Future Failures $26,092 $11,836 $5,918
7. Non-quantified Benefits*** Q R S
Total Benefits (4+5+6):
Total Benefits w/Extrapolated Recent Failure Cases = $16,246 $155,441 $6,649 $62,327 $2,949 25,220
Total Benefits @10% Future Failures = $26,168 $165,363 $11,161 $66,839 $5,189 $27,460
Total Benefits @20% Future Failures = $39,214 $178,409 $17,079 $72,757 $8,148 $30,419
Net Benefits (Total Benefits minus Total Costs)
Net Benefits w/Extrapolated Recent Failure Cases = ($21,692) $117,503 ($8,443) $47,235 ($3,127) $19,144
Net Benefits @10% Future Failures = ($11,770) $127,425 ($3,931) $51,747 ($887) $21,384
Net Benefits @20% Future Failures = $1,276 $140,471 $1,987 $57,665 $2,072 $24,343
Benefit/Cost Ratio (BCR)
BCR w/Extrapolated Recent Failure Cases = 0.428 4.097 0.441 4.130 0.485 4.151
BCR @10% Future Failures = 0.690 4.359 0.740 4.429 0.854 4.519
BCR @20% Future Failures = 1.034 4.703 1.132 4.821 1.341 5.006
Notes:
* Cancer risk reflects the arsenic groundwater pathway only and does not include other human health mortality or morbidity risks from non-carcinogens, nor do they reflect
ecological and socio-economic damages that could occur. Thus, the benefits are underestimated in this RIA.
** Cancer risks avoided are based on National Academy of Science (2001) data, which represents recent scientific information.
*** Q>R>S.
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