Appendix B to Part 76 - Procedures and Methods for Estimating Costs of Nitrogen Oxides Controls Applied to Group 1, Boilers
40:18.0.1.1.5.2.1.1.17 : Appendix B
Appendix B to Part 76 - Procedures and Methods for Estimating Costs
of Nitrogen Oxides Controls Applied to Group 1, Boilers 1. Purpose
and Applicability
This technical appendix specifies the procedures, methods, and
data that the Administrator will use in establishing “***the degree
of reduction achievable through this retrofit application of the
best system of continuous emission reduction, taking into account
available technology, costs, and energy and environmental impacts;
and which is comparable to the costs of nitrogen oxides controls
set pursuant to subsection (b)(1) (of section 407 of the Act).” In
developing the allowable NOX emissions limitations for Group 2
boilers pursuant to subsection (b)(2) of section 407 of the Act,
the Administrator will consider only those systems of continuous
emission reduction that, when applied on a retrofit basis, are
comparable in cost to the cost in constant dollars of low NOX
burner technology applied to Group 1, Phase I boilers.
The Administrator will evaluate the capital cost (in dollars per
kilowatt electrical ($/kW)), the operating and maintenance costs
(in $/year), and the cost-effectiveness (in annualized $/ton NOX
removed) of installed low NOX burner technology controls over a
range of boiler sizes (as measured by the gross electrical capacity
of the associated generator in megawatt electrical (MW)) and
utilization rates (in percent gross nameplate capacity on an annual
basis) to develop estimates of the capital costs and cost
effectiveness for Group 1, Phase I boilers. The following units
will be excluded from these determinations of the capital costs and
cost effectiveness of NOX controls set pursuant to subsection
(b)(1) of section 407 of the Act: (1) Units employing an
alternative technology, or overfire air as applied to wall-fired
boilers or separated overfire air as applied to tangentially fired
boilers, in lieu of low NOX burner technology for reducing NOX
emissions; (2) units employing no controls, only controls installed
before November 15, 1990, or only modifications to boiler operating
parameters (e.g., burners out of service or fuel switching) for
reducing NOX emissions; and (3) units that have not achieved the
applicable emission limitation.
2. Average Capital Cost for Low NOX Burner Technology Applied to
Group 1 Boilers
The Administrator will use the procedures, methods, and data
specified in this section to estimate the average capital cost (in
$/kW) of installed low NOX burner technology applied to Group 1
boilers.
2.1 Using cost data submitted pursuant to the reporting
requirements in section 4 below, boiler-specific actual or
estimated actual capital costs will be determined for each unit in
the population specified in section 1 above for assessing the costs
of installed low NOX burner technology. The scope of installed low
NOX burner technology costs will include the following capital
costs for retrofit application: (1) For the burner portion -
burners or air and coal nozzles, burner throat and waterwall
modifications, and windbox modifications; and, where applicable,
(2) for the combustion air staging portion - waterwall
modifications or panels, windbox modifications, and ductwork, and
(3) scope adders or supplemental equipment such as replacement or
additional fans, dampers, or ignitors necessary for the proper
operation of the low NOX burner technology. Capital costs
associated with boiler restoration or refurbishment such as
replacement of air heaters, asbestos abatement, and recasing will
not be included in the cost basis for installed low NOX burner
technology. The scope of installed low NOX burner technology
retrofit capital costs will include materials, construction and
installation labor, engineering, and overhead costs.
2.2 Using gross nameplate capacity (in MW) for each unit as
reported in the National Allowance Data Base (NADB),
boiler-specific capital costs will be converted to a $/kW
basis.
2.3 Capital cost curves ($/kW versus boiler size in MW) or
equations for installed low NOX burner technology retrofit costs
will be developed for: (1) Dry bottom wall fired boilers (excluding
units applying cell burner technology) and (2) tangentially fired
boilers.
3. [Reserved] 4. Reporting Requirements
4.1 The following information is to be submitted by each
designated representative of a Phase I affected unit subject to the
reporting requirements of § 76.14(c):
4.1.1 Schedule and dates for baseline testing, installation, and
performance testing of low NOX burner technology.
4.1.2 Estimates of the annual average baseline NOX emission
rate, as specified in section 3.1.1, and the annual average
controlled NOX emission rate, as specified in section 3.1.2,
including the supporting continuous emission monitoring or other
test data.
4.1.3 Copies of pre-retrofit and post-retrofit performance test
reports.
4.1.4 Detailed estimates of the capital costs based on actual
contract bids for each component of the installed low NOX burner
technology including the items listed in section 2.1. Indicate
number of bids solicited. Provide a copy of the actual agreement
for the installed technology.
4.1.5 Detailed estimates of the capital costs of system
replacements or upgrades such as coal pipe changes, fan
replacements/upgrades, or mill replacements/upgrades undertaken as
part of the low NOX burner technology retrofit project.
4.1.6 Detailed breakdown of the actual costs of the completed
low NOX burner technology retrofit project where low NOX burner
technology costs (section 4.1.4) are disaggregated, if feasible,
from system replacement or upgrade costs (section 4.1.5).
4.1.7 Description of the probable causes for significant
differences between actual and estimated low NOX burner technology
retrofit project costs.
4.1.8 Detailed breakdown of the burner and, if applicable,
combustion air staging system annual operating and maintenance
costs for the items listed in section 3.3 before and after the
installation, shakedown, and/or optimization of the installed low
NOX burner technology. Include estimates and a description of the
probable causes of the incremental annual operating and maintenance
costs (or savings) attributable to the installed low NOX burner
technology.
4.2 All capital cost estimates are to be broken down into
materials costs, construction and installation labor costs, and
engineering and overhead costs. All operating and maintenance costs
are to be broken down into maintenance materials costs, maintenance
labor costs, operating labor costs, and fan electricity costs. All
capital and operating costs are to be reported in dollars with the
year of expenditure or estimate specified for each component.
[60 FR 18761, Apr. 13, 1995, as amended at 61 FR 67164, Dec. 19,
1996; 62 FR 3464, Jan. 23, 1997]