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Economic Impact Analysis For The Lime Manufacturing MACT Standard, Final Report.

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Pursuant to Section 112 of the Clean Air Act, the U.S. Environmental Protection Agency (EPA) is developing National Emissions Staandards for Hazardous Air Pollutants (NESHAP) to control emissions released from lime manufacturing. This report analyzes the economic impacts of the rule.
The total annual cost of this regulation was estimated to be $22.2 million (1997$) in the absence of market adjustments. This cost was used as an input to an economic impact model. The model estimated domestic production of lime would decline by about 1.8 percent, while price would increase by about 2.1 percent. The Agency estimates pre-tax earnings for the companies owning the facilities in this source category will decline by about $0.8 million overall. In addition, EPA concludes that the rule may potentilly result in two premature plant closures. According to the Small Business Administration size standards, twelve companies owning facilities in this source category are considered small. As a result of a Small Business Advocacy Review (SBR) panel, the final rule contains a significant number of accomodations for small businesses. The results presented here confirm that the mitigating measures employed by the Agency have minimized the potential negative impacts of the rule on small businesses while satisfying the objectives of the CAA.

Reference #:
EPA Office:
Office of Air and Radiation
Office Suboffice:
Office of Innovative Strategies and Economics
Office Division:
Office of Air Quality Planning and Standards
EPA Author:
Sorrels, Larry
Document Type:
Economic Impact Assessment
RTI Internationl
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