Economic Analysis for the National and Paper …

1 Economic Analysis for the NationalEmission Standards for Hazardous AirPollutants for Source Category: Pulpand Paper Production; EffluentLimitations Guidelines, PretreatmentStandards, and New SourcePerformance Standards: Pulp, Paper ,and Paperboard Category Phase 1 EPA Contract No. 68-C3-0302 October 27, 1997 Prepared Environmental Protection AgencyOffice of Air and RadiationOffice of Air Quality Planning and StandardsInnovative Strategies and Economics GroupResearch Triangle Park, NC 27711andOffice of WaterOffice of Science and TechnologyEngineering and Analysis DivisionWashington, DC and Rulemaking Effort by the Office of Air and the Office of 1993 From and Subcategories TWOINDUSTRY Regulated Under This and , Paper , and Paperboard of Pulp, Paper , and Paperboard Distribution of (continued)

2 Of of Facilities and Business Patterns for the Industry Competitiveness of the Pulp and Paper Trade Competitiveness of Paper Chemical Supplier THREEECONOMIC IMPACT AND REGULATORYFLEXIBILITY Analysis Cost Impact Analysis Impact Analysis Value of Forecasted Price Closure Ratio Bankruptcy/Financial Ratio Flexibility Analysis (continued)PageiiiCHAPTER FOURBENEFITS AND ENVIRONMENTAL JUSTICE Air Organic Reduced Criteria Air Estimates of Baseline Pollutant Health Risk Consumption Advisory and Study Evaluation of Characteristics and New Case Water Characteristics and of New Case to National Water Values and Alternative Discount FIVEREGULATORY ALTERNATIVESDESCRIPTION, COSTS, POLLUTANT REMOVALS AND Pollution Control Compliance Pollution Compliance Components Pollution Compliance Control Emission Reductions and Cost (continued)

3 Pollution Compliance Pollution Control ComplianceComponents Pollution Compliance Control Removals and Cost-effectivenessof CWA Final Analysis of Cost-effectivenessof CWA Final of Combined Proposed and Final Air and FinalWater Analysis SIXECONOMIC IMPACT Source Performance Standards and Pretreatment Standards For New Papergrade Kraft and Soda ElementalChlorine Free (ECF) Papergrade Kraft and Soda TotallyChlorine Free (TCF) Final CAA (MACT I) and CWA(BAT/PSES) Requirements (Cluster Rule).. Cluster Rule and Proposed MACT of Company Closures and Related Direct (continued) Final CAA (MACT I) and CWA(BAT/PSES) Requirements (Cluster Rule).

4 Cluster Rule and Proposed MACT Final CAA (MACT I) and CWA (BAT/PSES) Requirements (Cluster Rule).. Cluster Rule and Proposed MACT Employment Impacts Based on Projected Final CAA (MACT I) and CW6(BAT/PSES) Requirements (Cluster Rule).. Cluster Rule and Proposed MACT Employment and Output Impacts Based on Projected Final CAA (MACT I) and CWA(BAT/PSES) Requirements (Cluster Rule).. Cluster Rule and Proposed MACT Rate Implementation Compliance Pulp Costs to Non-Integrated Analysis of Impacts from TCF (continued)PageviCHAPTER SEVENREGULATORY FLEXIBILITY Analysis AND UNFUNDED MANDATES REFORM From Air and Water Pollution Control Analysis (Altman's Z).

5 Costs as a Percentage of Annual EIGHTNATIONAL LEVEL BENEFITS to Quantitative Compliance with Ambient Water Quality Human Health Risk National Recreational Angling Benefits from Land Disposal of Summary of Water-Related Monetized Study Representativeness and Alternative Aggregate Water from a Benefits Receiving Water Sociodemographic Overall Representativeness from a Benefits Aggregate Water American Subsistence and Income Characteristics of Affected Counties and (continued) Effects on Low Income Justice Chlorine Free NINEBENEFIT-COST CASE Tombigbee and Mobile River Case of Bleached Kraft Mills in Quality Problems Associated with the DEM Fish Tissue Dioxin of of Water Quality Based of Air Benefits and River Case Quality Issues on the Pigeon of the Champion International Quality Assessment of Assessment of of Water-Related of Benefits to Columbia River/Lake Roosevelt Case of the Quality at the of of of Benefits and (continued)

6 Peninsula Case Quality Issues near the Samoa of the Louisiana-Pacific Samoa Pulp Quality Assessment of Assessment of River Case Health Assessment for Native Angling Use Use of Water-Related of Benefits and River Case Health of Water-Related of Benefits and Columbia River Case Health Assessment for Native of Water-Related of Benefits and (continued)PageixCHAPTER TENCOMPARISON OF MONETIZED BENEFITS AND of National Monetized Benefits and of Case Study Benefits and APRICE INCREASE BPOLLUTANT CSUBCATEGORY POLLUTANT LOADS AND DBASELINE FISHERY EHUMAN HEALTH BENEFITS FENVIRONMENTAL JUSTICE Analysis OF THEPULP AND Paper INTEGRATED , Paper , and Paperboard Shipment TonnageStatistics from EPA Survey and AF&PA Statistics: BAT/PSES-Regulated , Paper , and Paperboard Shipment Tonnage Statistics From EPA Survey and AF&PA Statistics.

7 MACT-Regulated of Pulp, Paper , and Paperboard of Pulp, Paper , and Paperboard Shipments, 1989 of Pulp, Paper , and Paperboard of Employees by Facility, Capital Investments Before and After on New Environmental Protection Plant and Equipment: Industry of Production Integration at Pulp and Paper Entities with Mills in the Bleached Papergrade Kraft and Papergrade Sulfite BAT/PSES-Regulated entities with Mills in the Kraft, Sulfite,and Semichemical MACT-Regulated Concentration Ratios for Market Concentration Ratios For Bleached Concentration Ratios For Coated Free Concentration Ratios For Uncoated Free and Paper Industry Data, , Paper , and Paperboard Imports and Exports, 1990-1995.

8 2-433-1 Inflation Rate, and Paper Industry Data, and Forecasted Earnings, of Forecasted Percentage Increase II Multipliers for the Pulp, Paper , and Paperboard Used To Estimate Baseline Pollutant and Post-Regulation Water Pollution Factors and Health-Based of MACT I and III Emission Control II Control Options by of MACT II Regulatory Options for Kraft and Soda Combustion MACT II of Costs by Mill Category MACT I (continued)Pagexi5-6 Summary of Proposed MACT II Alternative of Final MACT IA and Proposed MACT II Alternative Costs ..5-125-7 BSummary of Final MACT IB and Proposed MACT II Alternative and Paper Nationwide Air Emission and MACT Cost Impacts for Affected MACT BAT/PSES Options Considered by EPA for theBleached Papergrade Kraft and Soda BAT/PSES Options Considered By EPA for thePapergrade Sulfite of CWA Pollution Control Options: Bleached Papergrade Kraft and Soda Subcategory, Direct of CWA Pollution Control Options.

9 Bleached Papergrade Kraft and Soda Subcategory,Indirect of CWA Pollution Control Options,Papergrade Sulfite Subcategory, Direct of CWA Pollution Control Options,Pulp, Paper , and Paperboard of Final BAT/PSES, Final MACT I, and Proposed MACT II Costs for Bleached PapergradeKraft and Soda and Papergrade Sulfite of Final MACT I and Proposed MACT II Alternative Costs For Kraft, Sulfite, Soda, and Semichemical Mills and Final BAT/PSES Costs for Bleached Papergrade Kraft and Soda and Papergrade Sulfite Mills ..5-275-18 Bleached Papergrade Kraft and Soda Subcategory Comparison of Option B and TCF Costs.

10 5-286-1 Summary of Altman's Z Score Bankruptcy of Closures and Related Impacts Combined Final MACT I and Proposed MACT II Costs: All of Closures and Related Impacts Combined Final MACT I and Proposed MACT II Costs: All of Closures and Related Impacts BAT/PSESC osts: Bleached Papergrade Kraft and Soda of Closures and Related Impacts Final BAT/PSES and Final MACT I Costs: Bleached PapergradeKraft and Soda and Papergrade Sulfite of Closures and Related Impacts Final BAT/PSES, Final MACT I, and Proposed MACT II Costs: Bleached Papergrade Kraft and Soda and Papergrade Sulfite (continued)Pagexii6-7 Summary of Closures and Related Impacts BAT/PSES Option B, Final MACT I, and Proposed MACT II Costs: Bleached Papergrade Kraft and Soda and Papergrade Sulfite in Regional Unemployment Rates MACT-Related in Regional Unemployment Rates MACT-Related in Regional Unemployment Rates BAT/PSES in Regional Unemployment Rates Cluster Rule in Regional Unemployment Rates Cluster Rule and Proposed MACT II and Indirect Impacts MACT I and MACT IIAlternative Costs.