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Economic Impact Analysis For The Proposed Mercury Cell Chlor-Alkali Production NESHAP.

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Pursuant to Section 112 of the Clean Air Act, the U.S. Environmental Protection Agency (EPA) is developing a National Emissions Standard for Hazardous Air Pollutants (NESHAP) to control emissions released from chlorine production at mercury cell chlor-alkali facilities. Of the 43 facilities EPA identified as engaging in the production of chlorine, there are 12 facilities that use the mercury cell process. Eleven of these 12 mercury cell process facilities face positive costs of complying with this regulation.
The total annual costs of meeting the MACT standards for these facilities is $1.46 million. The economic impacts of this regulation were examined using two models: a competitive market model and an oligopoly market model. The price of chlorine and its co-product sodium hydroxide is expected to increase by less than 0.01% using either market model. Impacts on quantity produced of both chlorine and sodium hydroxide are of similar magnitude.
The 43 chlorine manufacturing facilities are owned by 21 companies, six of which are considered small based on the Small Business Administration's definitions for small businesses. A small business screening level analysis was conducted to determine if this regulation would have a significant impact on a substantial number of small businesses. An examination of the compliance costs-to-sales ratios of 21 companies shows that costs are expected to be less than 1 percent of company revenues, thus this regulation is not anticipated to have a significant economic impact on companies owning mercury cell chlor-alkali production plants.

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EPA Office:
Office of Air and Radiation
Office Suboffice:
Office of Air Quality Planning and Standards
Office Division:
Air Quality Strategies and Standards Division
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Document Type:
Economic Impact Assessment
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