Cost-Benefit Analysis Methodology: Install Commercially Compliant Engines on National Security Exempted Vessels?

Abstract

The Environmental Protection Agency (EPA) national security exemption (NSE) status can be applied to new and existing U.S. flagged vessels having a national defense mission and meeting associated criteria. Benefits of installing noncompliant marine engines on NSE vessels may include preserving a vessel class’ primary defense mission capability and engine configuration control. The drawback is increased emissions. An objective and versatile methodology framework was developed to quantify the cost-benefit tradeoff for NSE vessels, vehicles, and equipment. The parametric-based comparison of one-time and ongoing costs with monetized health benefit (utilized in conventional regulatory impact analyses) satisfactorily encompasses the fundamentals of environmental health risk and can be applied to all mobile and stationary equipment types.