Regulatory Impact Analysis for the Proposed Revised Cross-State Air Pollution Rule (CSAPR) Update for the 2008 Ozone NAAQS ERRATA SHEET After completion of the RIA, EPA received revised production cost projections for the proposed rule IPM run, which reduced the projected cost of the proposed rule. This Errata presents these technical corrections. The first table presents the changes in the text and is followed by sets of tables each showing the current table and corrected table. Page numbers Current Value Corrected Value (Highlighted in yellow) ES-15 The estimated social costs to The estimated social costs to implement the proposal, as implement the proposal, as described in this document, described in this document, are approximately $21 are approximately $20 million in 2021 and $6 million in 2021 and $1 million in 2025 million in 2025 (2016$). (2016$). ES-16 The annual net benefits of the The annual net benefits of the proposal in 2021 (in 2016$) proposal in 2021 (in 2016$) are approximately -$21 are approximately -$20 million using a 3 percent million using a 3 percent discount rate and a 7 percent discount rate and a 7 percent real discount rate. The annual real discount rate. The annual net benefits of the proposal in net benefits of the proposal in 2025 are approximately $27 2025 are approximately $31 million using a 3 percent real million using a 3 percent real discount rate and discount rate and approximately -$0.9 million approximately $4 million using a 7 percent real using a 7 percent real discount rate. discount rate. ES-17 The present value The present value (PV) of the net benefits, in (PV) of the net benefits, in 2016$ and discounted to 2016$ and discounted to 2021, is -$68 million when 2021, is -$59 million when using a 7 percent using a 7 percent discount rate and $14 million discount rate and $23 million when using a 3 percent when using a 3 percent discount rate. The equivalent discount rate. The equivalent annualized annualized value (EAV), an estimate of value (EAV), an estimate of the annualized value of the the annualized value of the net benefits consistent with net benefits consistent with the present the present value, is -$17 million per year value, is -$14 million per year when using a 7 percent when using a 7 percent Page numbers Current Value Corrected Value (Highlighted in yellow) discount rate and $3 million discount rate and $5 million when using a when using a 3 percent discount rate. 3 percent discount rate. 7-2 As shown in As shown in Chapter 4, the estimated Chapter 4, the estimated annual compliance costs to annual compliance costs to implement the proposal, as implement the proposal, as described in this described in this document, are approximately document, are approximately $21 million in 2021 and $6 $20 million in 2021 and $1 million in 2025 (2016$). million in 2025 (2016$). 7-3 The annual net benefits of the The annual net benefits of the proposal in 2021 (in 2016$) proposal in 2021 (in 2016$) are approximately -$21 are approximately -$20 million using both a 3 percent million using both a 3 percent and 7 percent and 7 percent real discount rate for the real discount rate for the climate benefits. The annual climate benefits. The annual net benefits of the proposal in net benefits of the proposal in 2025 are 2025 are approximately $27 using a 3 approximately $31 using a 3 percent real discount rate and percent real discount rate and -$0.9 million using a 7 $4 million using a 7 percent percent real real discount rate. discount rate. 7-5 The present value The present value (PV) of the net benefits, in (PV) of the net benefits, in 2016$ and discounted to 2016$ and discounted to 2021, is -$68 million when 2021, is -$59 million when using a 7 percent using a 7 percent discount rate and $14 million discount rate and $23 million when using a 3 percent when using a 3 percent discount rate. The equivalent discount rate. The equivalent annualized annualized value (EAV), an estimate of value (EAV), an estimate of the annualized value of the the annualized value of the net benefits consistent with net benefits consistent with the present the present value, is -$17 million per year value, is -$14 million per year when using a 7 percent when using a 7 percent discount rate and $3 million discount rate and $5 million when using a when using a 3 percent discount rate. 3 percent discount rate. Location: Page ES-10 Current Table: Table ES-1. National Compliance Cost Estimates (millions of 2016$) for the Regulatory Control Alternatives More-Stringent Less-Stringent Proposal Alternative Alternative 2021-2025 (Annualized) 19.4 80.6 1.6 2021 (Annual) 20.9 37.2 3.8 2025 (Annual) 6.3 132.2 -12.0 The 2021-2025 (Annualized) row reflects total estimated annual compliance costs levelized over the period 2021 through 2025, discounted using a 4.25 real discount rate. The 2021 (Annual) and 2025 (Annual) rows reflect annual estimates in each of those years. Corrected Table (Corrections highlighted in yellow): Table ES-2. National Compliance Cost Estimates (millions of 2016$) for the Regulatory Control Alternatives More-Stringent Less-Stringent Proposal Alternative Alternative 2021-2025 (Annualized) 17.4 80.6 1.6 2021 (Annual) 20.5 37.2 3.8 2025 (Annual) 1.5 132.2 -12.0 The 2021-2025 (Annualized) row reflects total estimated annual compliance costs levelized over the period 2021 through 2025, discounted using a 4.25 real discount rate. The 2021 (Annual) and 2025 (Annual) rows reflect annual estimates in each of those years. Location: Page ES-16 Current Table: Table ES-7. Benefits, Costs, and Net Benefits of the Proposal and More and Less Stringent Alternatives for 2021 for the U.S. (millions of 2016$) Discount Rate Benefits Costs Net Benefits Proposal 3% 0.31 +B 21 -21 +B 7% 0.05 +B -21 +B More Stringent Alternative 3% 0.80 +B 37 -36 +B 7% 0.12 +B -37 +B Less Stringent Alternative 3% 0.17 +B 4 -4 +B 7% 0.03 +B -4 +B Corrected Table (Corrections highlighted in yellow): Table ES-7. Benefits, Costs, and Net Benefits of the Proposal and More and Less Stringent Alternatives for 2021 for the U.S. (millions of 2016$) Discount Rate Benefits Costs Net Benefits Proposal 3% 0.31 +B 20 -20 +B 7% 0.05 +B -20 +B More Stringent Alternative 3% 0.80 +B 37 -36 +B 7% 0.12 +B -37 +B Less Stringent Alternative 3% 0.17 +B 4 -4 +B 7% 0.03 +B -4 +B Location: Pages ES16-17 Current Table: Table ES-8. Benefits, Costs, and Net Benefits of the Proposal and More and Less Stringent Alternatives for 2025 for the U.S. (millions of 2016$) Discount Rate Benefits Costs Net Benefits Proposal 3% 33 +B 6 27 +B 7% 5.4 +B -0.9 +B More Stringent Alternative 3% 71.5 +B 132 -61 +B 7% 11.7 +B -120 +B Less Stringent Alternative 3% 25 +B -12 37 +B 7% 4.2 +B 16 +B Corrected Table (Corrections highlighted in yellow): Table ES-8. Benefits, Costs, and Net Benefits of the Proposal and More and Less Stringent Alternatives for 2025 for the U.S. (millions of 2016$) Discount Rate Benefits Costs Net Benefits Proposal 3% 33 +B 1 31 +B 7% 5.4 +B 4 +B More Stringent Alternative 3% 71.5 +B 132 -61 +B 7% 11.7 +B -120 +B Less Stringent Alternative 3% 25 +B -12 37 +B 7% 4.2 +B 16 +B Location: Page ES-18 Current Table: Table ES-9. Summary of Present Values and Equivalent Annualized Values for the 2021- 2025 Timeframe for Estimated Compliance Costs, Climate Benefits, and Net Benefits for the Proposed Rule (millions of 2016$, discounted to 2021) 3% Discount Rate 7% Discount Rate Present Value Benefitsc,d 101+β 15+β Climate Benefitsc 101 15 Compliance Costse 87 83 Net Benefits 14+β -68+ β Equivalent Annualized Value Benefits 22+b 4+b Climate Benefits 22 4 Compliance Costs 19 20 Net Benefits 3+b -17+b Corrected Table (Corrections highlighted in yellow): 3% Discount Rate 7% Discount Rate Present Value Benefitsc,d 101+β 15+β Climate Benefitsc 101 15 Compliance Costse 78 74 Net Benefits 23+β -59+ β Equivalent Annualized Value Benefits 22+b 4+b Climate Benefits 22 4 Compliance Costs 17 18 Net Benefits 5+b -14+b Location: Page 4-20 Current Table: Table 4-6. National Compliance Cost Estimates (millions of 2016$) for the Regulatory Control Alternatives Revised CSAPR Update More-Stringent Less-Stringent Proposal Alternative Alternative 2021-2025 (Annualized) 19.4 80.6 1.6 2021 (Annual) 20.9 37.2 3.8 2022 (Annual) 29.7 49.2 12.8 2023 (Annual) 27.8 47.3 12.8 2024 (Annual) 6.3 132.2 -12.0 2025 (Annual) 6.3 132.2 -12.0 Corrected Table (Corrections highlighted in yellow): Table 4-6. National Compliance Cost Estimates (millions of 2016$) for the Regulatory Control Alternatives Revised CSAPR Update More-Stringent Less-Stringent Proposal Alternative Alternative 2021-2025 (Annualized) 17.4 80.6 1.6 2021 (Annual) 20.5 37.2 3.8 2022 (Annual) 29.6 49.2 12.8 2023 (Annual) 27.7 47.3 12.8 2024 (Annual) 1.5 132.2 -12.0 2025 (Annual) 1.5 132.2 -12.0 Location: Page 7-3 Current Table: Table 7-1. Benefits, Costs, and Net Benefits of the Proposal and More and Less Stringent Alternatives for 2021 for the U.S.