Economic Assessment
DPRA designs and implements economic assessment studies in accordance with OMB Circular A-4 and analogous state regulations when our clients need to develop new regulations or revise existing regulations. DPRA completes detailed Regulatory Impact Assessments (RIAs) of regulatory actions affecting industries and industrial processes, specifically addressing economic impacts and benefits of alternative regulatory options. We have worked in all of the major environmental program areas. We also can conduct stand alone economic impact studies that examine specific industries or sectors. We can trace impacts through a local, regional or national economy and measure the cumulative effects of policy changes, development projects and facility or plant closures. To support the preparation of regulatory decision documents for public meeting and briefings and administrative records, DPRA performs cost-benefit and cost-effectiveness analyses of policy options. Sometimes these studies are performed in place of a full regulatory impact statement. As part of assessing the cost of a particular regulatory or policy option or set of options, DPRA provides cost engineering services for environmental remediation, manufacturing, construction, and transportation industries, including detailed assessments of equipment, installation, operation, and maintenance costs. Some examples of projects DPRA has performed in this service area include:
Definition of Solid Waste RIA: The U.S. DC Circuit Court of Appeals decision to vacate the regulatory language in 40 CFR 261.4 limited EPA’s legal authority to regulate secondary materials being recycled under RCRA. DPRA supported EPA’s Office of Solid Waste by completing analyses of various policy and regulatory options to revise the definition of solid waste to conform with the DC Circuit Court opinion. DPRA estimated waste quantities affected under different options and through detailed cost and economic analyses estimated the regulatory impacts. The resulting regulatory proposal was estimated to decrease waste management costs incurred by affected industries by nearly $180 million per year.
Economic Impact Analysis of Fort Riley: This project assessed the economic impact of Fort Riley military base on the regional economy. The study estimated the direct and indirect contribution of Fort Riley to the regional economy, including the fiscal impact on city, county and state governments. Indirect contributions of Fort Riley were quantified using an Input/Output Model. The economic criteria analyzed included employment and income and two major components of income: retail sales and housing. Study results were used as part of a successful campaign to demonstrate Fort Riley's regional economic contribution and convince U.S. Congressmen and Senators that closing Fort Riley under base realignment and closure initiatives would have a devastating impact on surrounding communities.
Cost-Effectiveness of Best Management Practices: The objective of this project was to assess the cost-effectiveness of reducing agricultural nonpoint pollution in the Great Lakes basin. A case study was completed of a watershed in Ohio, where a linear programming model was developed to analyze the costs of reducing nonpoint phosphorus pollution via conservation tillage practices in this watershed. These costs were then compared with cost estimates also developed in this study of removing phosphorus by upgrading water treatment plants. The study concluded that the BMPs examined in the case study were more cost effective in reducing phosphorus pollution than upgrading POTWs, and helped change EPA policy regarding programs to affect improved water quality.
EPA Unit Cost Compendium: DPRA developed the Unit Cost Compendium (UCC) to provide for greater accuracy and consistency in the use of unit costs across EPA OSW. The UCC contains cost engineering data compiled using cost estimating software including Remedial Action Cost Engineering and Requirements (RACER) and Environmental Cost Handling Options and Solutions (ECHOS) database. The UCC contains cost data for over 125 individual cost items ordered according to the progression of waste generation and management (i.e., from permitting a facility, through treatment/disposal of waste, to corrective action at a facility). The cost compendium provides a comprehensive source of cost estimations for RCRA waste management.
Definition of Solid Waste RIA: The U.S. DC Circuit Court of Appeals decision to vacate the regulatory language in 40 CFR 261.4 limited EPA’s legal authority to regulate secondary materials being recycled under RCRA. DPRA supported EPA’s Office of Solid Waste by completing analyses of various policy and regulatory options to revise the definition of solid waste to conform with the DC Circuit Court opinion. DPRA estimated waste quantities affected under different options and through detailed cost and economic analyses estimated the regulatory impacts. The resulting regulatory proposal was estimated to decrease waste management costs incurred by affected industries by nearly $180 million per year.
Economic Impact Analysis of Fort Riley: This project assessed the economic impact of Fort Riley military base on the regional economy. The study estimated the direct and indirect contribution of Fort Riley to the regional economy, including the fiscal impact on city, county and state governments. Indirect contributions of Fort Riley were quantified using an Input/Output Model. The economic criteria analyzed included employment and income and two major components of income: retail sales and housing. Study results were used as part of a successful campaign to demonstrate Fort Riley's regional economic contribution and convince U.S. Congressmen and Senators that closing Fort Riley under base realignment and closure initiatives would have a devastating impact on surrounding communities.
Cost-Effectiveness of Best Management Practices: The objective of this project was to assess the cost-effectiveness of reducing agricultural nonpoint pollution in the Great Lakes basin. A case study was completed of a watershed in Ohio, where a linear programming model was developed to analyze the costs of reducing nonpoint phosphorus pollution via conservation tillage practices in this watershed. These costs were then compared with cost estimates also developed in this study of removing phosphorus by upgrading water treatment plants. The study concluded that the BMPs examined in the case study were more cost effective in reducing phosphorus pollution than upgrading POTWs, and helped change EPA policy regarding programs to affect improved water quality.
EPA Unit Cost Compendium: DPRA developed the Unit Cost Compendium (UCC) to provide for greater accuracy and consistency in the use of unit costs across EPA OSW. The UCC contains cost engineering data compiled using cost estimating software including Remedial Action Cost Engineering and Requirements (RACER) and Environmental Cost Handling Options and Solutions (ECHOS) database. The UCC contains cost data for over 125 individual cost items ordered according to the progression of waste generation and management (i.e., from permitting a facility, through treatment/disposal of waste, to corrective action at a facility). The cost compendium provides a comprehensive source of cost estimations for RCRA waste management.