Waste Life-cycle Cost: Generic Guidance and Assumptions
- Prepared by:
- EG&G (now called Lockheed)
- Prepared for:
- All Department of Energy Facilities
- Application:
| Financial analysis: |
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| Environmental impact analysis: |
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| Waste management/P2: |
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| Environmental cost listing/database: |
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| Cost estimation: |
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| Alternative product/process comparison: |
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- Generic guidance for developing waste life-cycle costs. The guidance is directed toward DOE facilities, and definitions of life-cycle costs are consistent with DOE assumptions. Uses include prioritization of waste minimization activities, cost-benefit analysis of process modifications, and computing current costs of waste processing.
- Development/publication date and updates:
- Published as part of a final report called "Avoidable Waste Management Cost," number INEL-94-0205, in January, 1995.
- Public availability:
- Available
- Purpose and current use:
- The objective was to enhance the ability of various DOE facilities to make better decisions concerning waste minimization, generation, facility upgrades, and process changes.
- Cost information:
- The price of the report through OSTI is $36 (including shipping and handling).
- Contents and system requirements:
- General guidelines, assumptions, suggestions
Summary of methodology
This method considers costs associated with waste materials only. A cost/benefit analysis is recommended for the comparison of options.
Life-cycle stages covered
| Raw material acquisition |
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| Manufacturing stage |
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| Use/reuse/maintenance |
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| Recycle/waste management |
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The inputs and outputs considered include the following.
- processing/manufacturing:
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wastegeneration, accumulation, and characterization |
- packaging/transportation/storage:
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waste packaging and handling, transportation capital and operating |
- waste management: treatment:
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treatment, storage, disposal [including allocation of costs for extended storage and disposal capacity], disposal site closure, pre- and post-closure monitoring and surveillance |
Type of costs considered
| Conventional |
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| Potentially hidden |
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| Contingent |
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| External |
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Inputs and outputs are divided into generic cost categories:
- activities associated with fixed costs
- -facility management
- -environmental program development
- -permitting
- -equipment replacements/required upgrades
- -quality assurance
- -preventive maintenance
- -fire protection/emergency management
- -records management system-operating procedures development/management raining
- -generator waste certification program
- -site planning and design
- -utility construction
- -health protection program
- -regulatory compliance
- activities associated with variable costs
- -waste handling/transport
- -records origination/management
- -earth moving
- -spent storage/disposal capacity
- -waste packaging
- -waste inspection, sampling, characterization
- -radiation monitoring
- -job control/scheduling
- -corrective maintenance
- -waste treatment
Method of cost estimation
Costs are divided into three categories:
- fixed costs-costs that remain constant, in total, regardless of business activity,
- sunk costs-costs that have already been incurred, committed, or planned and are not affected by waste generation rates in the present or future(e.g., cost of existing facilities, capital and operating costs for existing and new facilities required to handle legacy waste regardless of current waste generation), and
- variable costs-costs that vary, in total, in direct proportion to changes in the level of activity.
Costs are calculated as follows:
| Total cost for a waste category = |
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|
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- sunk costs for a waste category +
- fixed costs for a waste category +
- (sum of unit variable costs for each waste stream within a category) x (forecasted amount of each waste)
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Generation of financial indicators
| Net present value (NPV) |
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| Payback period |
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| Internal rate of return (IRR) |
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| Benefits cost ratio |
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| Other |
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A cost/benefit analysis is recommended for comparing options. The guide does not provide information on the calculation of any indicators.
Attributes
Costs for treatment, storage, and disposal facilities are recommended to be consistent. The guidelines recommend the sharing of these cost elements among sites that can be facilitated through the Waste Minimization Subcommittee of the GOCO Waste Management Committee.
Limitations
The guidance is directed toward DOE facilities. Less tangible (internal, potentially hidden) and contingent costs are mentioned, but not included in the costs considered. External costs are not considered.
- Basis for evaluation:
- The information provided here is based on a profile of the tool presented in Weitz et al. (1994). Subsequent reviews were done by incorporating information obtained through telephone communications with Lockheed and INEL in May, 1995.
- Contact information:
- Available for government agencies and contractors through OSTI. The report will ultimately be sent to the NTIS library (order/accession number: DE-95008669, from where other parties may purchase it).
- Lockheed, Idaho Technologies
- PO Box 1625, Idaho Falls,
- ID 83415-2420
- Chris Ischay
- 208-526-4382
- Office of Scientific and Technical Information (OSTI)
- 615-576-8401
- The report is also available at the INEL Technical Library (not for purchase):
- 208-526-5856
- National Technical Information Service (NTIS)
- 800-553-6847
- 703-487-4660
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