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Module 1: Role, Purpose and General Use of the EPA Air Pollution Control Cost Manual
After completion of this module, learners will be able to explain the role, purpose and general use of the Cost Manual. Specifically, learners will be able to:
- Explain the purpose and identify the users of the Cost Manual.
- Access the Cost Manual on the EPA’s website.
- Describe the organization of the Cost Manual.
- Identify the pollutants covered by the Cost Manual.
- Identify the types of air pollution sources covered by the Cost Manual.
- Describe the cost analyses the Cost Manual supports.
- Explain when to follow the guidance of the Cost Manual in different regulatory contexts.
- Explain what to do when any components of the Cost Manual methodology are not being followed.
- Explain the three types of typical Clean Air Act regulatory contexts for which cost analyses are conducted using the Cost Manual.
After completion of this module, learners will be able to prepare and review cost analyses under the Cost Manual. Specifically, learners will be able to:
- Explain the cost analysis process under the Cost Manual.
- Identify three types of cost effectiveness analysis.
- Identify the most common type of cost effectiveness analyses utilized under the Cost Manual.
- Describe the methodology used in the Cost Manual, the Equivalent Uniform Annual Cost (EUAC) Methodology for Cost Estimation.
- Identify conditions under which cost analysis is unnecessary, according to the top-down analysis process outlined in draft EPA New Source Review guidance.
- Explain key concepts and terms used in the Cost Manual.
- Identify the seven steps necessary to conduct a cost analysis.
- Explain how to calculate Total Direct Cost (TDC), including Purchased Equipment Cost (PEC).
- Identify things that should be considered when estimating the PEC.
- Describe the relative accuracy of calculated Total Capital Investment (TCI) values (most accurate, less accurate, least accurate) considering the basis for the PEC (including the dollar year and origin of cost) and other input cost data.
- Explain how to determine the Total Indirect Cost (TIC).
- Explain how to produce an estimate for TCI.
- Explain how to estimate Total Annual Cost (TAC).
- Define direct costs (or identify examples of direct costs).
- Define indirect costs (or identify examples of indirect costs).
- Explain how to annualize Total Capital Investment (TCI).
- Define Capital Recovery Factor (CRF).
- Explain how to calculate the total annualized cost.
- Explain how cost effectiveness is calculated.
- Describe key considerations in determining baseline emissions for Best Available Control Technology (BACT)/New Source Review (NSR) analyses and 4-Factor Analyses.
- Explain the concept of cost thresholds, and how the EPA considers them.
- Explain what a “bright line” cost threshold is and identify factors that may be considered by regulatory agencies in determining whether a specific control option is cost effective.
- Describe certain common errors and key items to watch for when applying the Cost Manual to specific cost analyses being reviewed or prepared.
- Describe examples of good quality versus poor quality documentation used as the basis for cost effectiveness analyses when applying the Cost Manual to specific cost analyses being reviewed or prepared.
PERM210-SI: EPA Air Pollution
Control Cost Manual
Control Cost Manual
Analyses Under the EPA Control Cost Manual
PERM210-SI Course Exam