Incremental Costs and Benefits Related to Amended Chlorobiphenyl Regulations
Year-by-year costs and benefits for a number of industry sectors, the federal government, and human use of the environment have been calculated. Costing methods were based on a number of assumptions that are presented in detail in the Appendices to the full report. Future costs and benefits were converted to present values using a real discount rate of 5%. The calculations produced a "best estimate" of the costs or benefits. Error was considered where appropriate and the most significant error range for each calculation was used to create a "low estimate" and a "high estimate". The results of the calculation of incremental costs are given in Table 2. The results of the calculation of incremental benefits are given in Table 3.
Industrial Sector and Type of Expense | Category of PCBs | Incremental Cost of Enacting Revised Regulations ($millions Present Value) | ||
---|---|---|---|---|
Best Estimate | Low Estimate | High Estimate | ||
PCB Owners - costs of decommissioning and destroying high-level (>500 ppm) PCBs and replacing equipment by 2007 |
In-Service, Excluding Sensitive Locations (PCB Regs. Subsection 8 (1)) | -$84.5 | -$63.4 | -$105.6 |
In-Service in Sensitive Locations (PCB Regs. Subsection 8 (4)) | -$6.5 | -$4.9 | -$8.1 | |
In Storage (Storage Regs Subsection 4 (1)) | -$10.8 | -$8.1 | -$13.5 | |
Sub-total | -$ 101.8 | -$ 76.4 | -$ 127.2 | |
PCB Owners - costs of decommissioning and destroying low-level (50-500 ppm) PCBs and replacing equipment by 2014 | In-Service, Excluding Sensitive Locations ((PCB Regs Subsection 8 (3)) | -$3.0 | -$2.25 | -$3.75 |
In-Service in Sensitive Locations (PCB Regs Subsection 8 (4)) | -$0.6 | -$0.45 | -$0.75 | |
In Storage (Storage Regs Subsection 4 (1)) | $0.2 | $0.15 | $0.25 | |
Sub-total | -$3.4 | -$2.55 | -$4.25 | |
PCB Owners - costs of destroying PCBs 2-50 ppm to below 2 ppm | All equipment (PCB Regs Section 5) | -$4.1 | -$3.1 | -$5.1 |
Federal Government - cost of enforcing revised regulations and tracking inventories | In-Service, Excluding Sensitive Locations | -$0.49 | -$0.37 | -$0.61 |
In-Service in Sensitive Locations | -$0.05 | -$0.04 | -$0.06 | |
In Storage | $0.06 | $0.05 | $0.07 | |
Sub-total | -$0.48 | -$0.36 | -$0.60 | |
PCB Owners - additional costs of labeling | In-Service, Excluding Sensitive Locations (PCB Regs Section 12) | -$0.29 | -$0.22 | -$0.36 |
In-Service in Sensitive Locations (PCB Regs Section 12) | -$0.01 | -$0.01 | -$0.01 | |
Sub-Total | -$0.3 | -$0.23 | -$0.37 | |
PCB Owners - additional costs reporting and mgmt. plans | In-Service, Excluding Sensitive Locations (PCB Regs Section 13) | -$16.3 | -$12.2 | -$20.4 |
Sensitive Loc. (PCB Regs Section 13) | -$0.35 | -$0.26 | -$0.44 | |
Sub-Total | -$16.65 | -$12.46 | -$20.84 | |
Total Cost Related to In-Service PCBs, Excl. Sensitive Locations | -$108.68 | -$81.54 | -$135.82 | |
Total Cost Related to In-Service PCBs in Sensitive Locations | -$7.51 | -$5.66 | -$9.36 | |
Total Cost Related to In-Storage PCBs | -$10.54 | -$7.90 | -$13.18 | |
Grand Total Costs | -$ 126.7 | -$ 95.1 | -$ 158.4 |
Industrial Sector and Type of Expense | Category of PCBs | Incremental Cost of Enacting Revised Regulations ($millions Present Value) | ||
---|---|---|---|---|
Best Estimate | Low Estimate | High Estimate | ||
PCB Owners - benefit due to reduction in costs of cleaning up spills and fires | In-Service, Excluding Sensitive Locations (PCB Regs Subsecstion 8 (1), 8 (3)) | $19.7 | $14.8 | $24.6 |
In-Service in Sensitive Locations (PCB Regs Subsection 8 (4)) | $1.5 | $1.1 | $1.9 | |
In Storage (Storage Regs. Subsection 4 (1)) | $10.7 | $8.0 | $13.4 | |
Sub-total | $31.9 | $23.9 | $39.9 | |
Canadian Environment - reduction in ecosystem impairment/improvement in use of resources | In-Service, Excluding Sensitive Locations (PCB Regs Subsecstion 8 (1), 8 (3)) | $40.1 | $30.1 | $50.1 |
In-Service in Sensitive Locations (PCB Regs Subsection 8 (4)) | $2.1 | $1.6 | $2.6 | |
In Storage (Storage Regs. Subsection 4 (1)) | $25.8 | $19.4 | $32.2 | |
Sub-total | $68.0 | $51.1 | $84.9 | |
Total Benefit Related to In-Service PCBs, Excl. Sensitive Locations | $59.8 | $44.9 | $74.7 | |
Total Benefit Related to In-Service PCBs in Sensitive Locations | $3.6 | $2.7 | $4.5 | |
Total Benefit Related to In-Storage PCBs | $36.5 | $27.4 | $45.6 | |
Grand Total | $ 99.9 | $75.0 | $124.8 |
Other potential costs that have not been quantified for this study include:
- Costs to PCB owners to maintain additional inventories and to maintain additional staff or contractors to ensure compliance with the regulations.
- Costs to provincial and municipal governments to modify provincial regulations and municipal bylaws to match the federal regulations, to monitor the progress of phase-out and enforce revised regulations.
- Losses to the PCB waste management industry due to fewer clean-ups of spilled PCBs.
Other potential benefits that have not been quantified for this study include:
- Benefit to governments and PCB owners after phase-out due to reduction in effort to keep inventories, label PCBs, enforce regulations, and monitor status of PCBs.
- Financial benefits to the electrical equipment supply industry due to earlier replacement of equipment.
- Financial benefits to the PCB waste management industry due to earlier decommissioning and destruction of PCBs.
- Social benefit due to the pride of accomplishment of the early phase-out and a feeling of well-being that PCBs are no longer a threat in neighborhoods and the workplace.
- Intrinsic benefit to the environment and ecosystems as they gradually recover from the effects of PCBs.
- Human health benefits due to the reduction in incidence of cancer and immune system dysfunction, reduction in health effects due to multiple chemical exposures, and reduction in effects on brain function and development in children maternally exposed to PCBs. Health Canada stated, in a document titled "It's Your Health", that "Steps taken to reduce the degree of exposure and/or the duration of exposure (to PCBs) would be expected to have a direct bearing on the reduction of human morbidity and mortality arising from PCB exposure" and "This will certainly translate into reduced medical costs associated with PCB exposure and increased quality of life for all Canadians". (Health Canada, 2000). However Health Canada advised against attempting to quantify the benefits to Canadians due to the enormous uncertainties in the rates and timing of health effects due to PCB exposure.
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