Estimating Innovative Technology Costs for the SITE Program

Abstract

Among the objectives of the EPA’s Superfund Innovative Technology Evaluation (SITE) Program are two which pertain to the issue of economics:

1.	That the program will provide a projected cost for each treatment technology demonstrated.
2.	That the program will attempt to identify and remove impediments to the development and commercial use of alternative technologies.1

The SITE Program has fostered a special relationship between elements of the public and private sector. In turn, this has created a unique set of problems. These problems are most apparent where objectives of the public and private sector conflict, as in the area of cost economics. One concern of the SITE Program is to provide the public with an impartial analysis of each technology’s cost. Just as important is the need to be sensitive to the demands of the competitive economic environment which face every firm selling innovative technology (especially when the goal is to promote the commercial use of new technologies).

An early concern of the SITE Program was to design a methodology for projecting and reporting costs which tried to balance the needs of these two groups. Toward this end, four issues were identified which were thought to have a significant impact on the SITE Program's ability to generate useful cost projections. An analysis of these issues led to the creation of a simple five-part cost methodology. This paper will review the nature of these problems and will describe the methodology which addresses them. Finally, a review of cost data gathered from the first nine demonstrations will be presented.