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.

Table 2: Summary of Incremental Costs
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
Table 3: Summary of Incremental Benefits
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:

Other potential benefits that have not been quantified for this study include:

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