federal register - U.S. Government Printing Office

6402 Federal Register / Vol. 62, No. 28 / Tuesday, February 11, 1997 / Proposed RulesTABLE VIII–2.—COST PER LOCOMOTIVE—TIER I STANDARDS—ContinuedCost component Cost CommentsRemanufacture ............................................. 12,000 .......................................................... $2000 in Years 6, 12, 18, 24, 36.Fuel ............................................................... 0 ................................................................... Total lifetime cost.Testing:Cert ........................................................ 378 ............................................................... Occurs in year 1.Prod Line ............................................... 238 ............................................................... Occurs in year 1.In-use ..................................................... 10 Full FTP ..................................................115 Short Test .............................................Occurs in years 1–40.Total Cost ....................................... 117,616TABLE VIII–3.—COST PER LOCOMOTIVE—TIER II STANDARDSCost component Cost CommentsInitial Equipment ............................................... $200,000 1 ......................................................... Occurs in year 1.Remanufacture .................................................. 18,000 ............................................................... $3000 in Years 6,12,18,24,30,36.Fuel ................................................................... 42,500 ............................................................... Total lifetime cost.Testing:Cert ............................................................ 703 1 .................................................................. Occurs in year 1.Prod Line ................................................... 281 .................................................................... Occurs in year 1.In-use ......................................................... 10 Full FTP .......................................................115 Short Test ..................................................Occurs in years 1–40.Total Cost ........................................... 266,484 11 For first five years of production, assuming the research, development and certification costs are recovered in five years. Total costs woulddrop to $85,781 per locomotive after five years.TABLE VIII–4.—SUMMARY OF 41YEAR TOTAL LOCOMOTIVE PROGRAMCOSTS[millions]Actual NPV 1Tier 0 ......................... $1,526 $1,193Tier I .......................... 286 211Tier II ......................... 1,301 428Average Annual ........ 76 45Total ................... 3,113 1,8311 The NPV costs are based on a seven percentdiscount rate. A three percent rate wouldyield an average annual cost of $58 millionand a total cost of $2,360 million.IX. Cost-EffectivenessThe costs for NO X or PM reductionsare difficult to assign to a singlepollutant due to the relationshipbetween NO X and PM emissiongeneration. EPA computed costeffectivenessfor this rulemaking usingonly the NO X reductions, and using thecombined NO X and PM reductions.Costs presented below are for allreductions. It should be rememberedthat there would also be some emissionreductions in HC and CO that would beachieved from the same technology thatis used for NO X and PM control,TABLE IX–1.—COST EFFECTIVENESSenhancing the benefits of the programwithout significantly impacting the cost.The following table (Table IX–1)summarizes the costs and emissionbenefits of the national locomotiverulemaking. Costs and emission benefitswere computed over a 41 year programrun. 37 In computing costs, EPA hasgenerally used conservative estimateswhich are fairly consistent with themanufacturers’ own cost estimates. EPAtherefore believes this analysis to be aworst-case scenario in terms of cost toindustry.NO XNO X + PMTotal Emission Reductions (millions metric tons) ............................................................................................................ 17.83 18.02Total Costs (million $) ...................................................................................................................................................... 3,113 3,113Annual Emission Reductions (millions metric tons) ......................................................................................................... 0.43 0.44Annual Costs (millions $) ................................................................................................................................................. 76 76Cost Effectiveness($/ton) ................................................................................................................................................. 175 173X. Public ParticipationA. Comments and the Public DocketEPA desires full public participationin arriving at final rulemakingdecisions. EPA solicits comments on allaspects of today’s proposal from allinterested parties. Wherever applicable,full supporting data and detailed37 EPA used a 41-year program run to moreaccurately reflect lifetime costs associated withanalyses should also be submitted toallow EPA to make maximum use of thecomments. Commenters are especiallyencouraged to provide specificsuggestions for changes to any aspects ofthe proposal that they believe need to bemodified or improved. All commentsshould be directed to the EPA Airlocomotives and locomotive engines, which havelong lives (40 years or more).Docket Section, Docket No. A–94–31(see ADDRESSES).Commenters desiring to submitproprietary information forconsideration should clearly distinguishsuch information from other commentsto the greatest extent possible and labelit ‘‘Confidential Business Information.’’Submissions containing such