Lfgcost Web v3.5 Usersmanual Mar2021
Lfgcost Web v3.5 Usersmanual Mar2021
Lfgcost Web v3.5 Usersmanual Mar2021
Table of Contents
Section Page
Introduction ..................................................................................................................................... 1
Using LFGcost-Web ....................................................................................................................... 2
Summary of Revisions ................................................................................................................ 2
General Instructions and Guidelines ........................................................................................... 2
Inputs........................................................................................................................................... 2
Outputs ........................................................................................................................................ 2
Calculators .................................................................................................................................. 3
Summary Reports........................................................................................................................ 3
Software Requirements ............................................................................................................... 4
Cost Basis.................................................................................................................................... 4
Cost Scope .................................................................................................................................. 4
Cost Uncertainty ......................................................................................................................... 5
Evaluating Economic Benefits and Job Creation........................................................................ 7
Further Assistance ....................................................................................................................... 8
Technical Basis of LFGcost-Web ................................................................................................... 9
INST: General Instructions and Guidelines ............................................................................. 10
INP-OUT: Inputs / Outputs...................................................................................................... 11
WASTE: Waste Calculator / Disposal History ........................................................................ 18
REGIONAL PRICING: Regional Electricity Pricing ............................................................. 19
CURVE: Landfill Gas Curve ................................................................................................... 20
AVOIDED CO2 - ELEC: Regional Grid Carbon Dioxide Avoided Emission Factors ........... 21
ENV: Environmental Benefits ................................................................................................. 22
FLOW: Landfill Gas Flow Rate Calculations ......................................................................... 25
C&F: Collection and Flaring System....................................................................................... 27
DIR: Direct-Use System .......................................................................................................... 28
BLR: Boiler Retrofit ................................................................................................................ 29
RNG: Renewable Natural Gas Processing Plant ..................................................................... 30
CNG: Onsite CNG Production and Fueling Station ................................................................ 31
TUR: Standard Turbine-Generator Set .................................................................................... 32
ENG: Standard Reciprocating Engine-Generator Set .............................................................. 33
MTUR: Microturbine–Generator Set ....................................................................................... 34
SENG: Small Reciprocating Engine–Generator Set ................................................................ 35
CHPE: CHP Reciprocating Engine-Generator Set .................................................................. 36
CHPT: CHP Turbine-Generator Set ........................................................................................ 37
CHPM: CHP Microturbine-Generator Set ............................................................................... 38
ECN: Economic Analysis ........................................................................................................ 39
BUDGET-ENG: Allocation of Recip. Engine Costs for Economic Benefitsa ........................ 42
BUDGET-DIR: Allocation of Direct-Use Project Costs for Economic Benefitsa................... 44
BUDGET-RNG: Allocation of RNG Costs for Economic Benefitsa ...................................... 46
ECON-BEN SUMMARY: Economic Benefits and Job Creation Summarya ......................... 49
Appendix A: Default Value Documentation.............................................................................. A-1
Appendix B: Common Abbreviations ....................................................................................... B-1
Appendix C: Evaluating Projects with Multiple Equipment and/or Start Dates ....................... C-1
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List of Tables
List of Figures
Figure 1. Example of LFG generation, collection and utilization curve in LFGcost-Web .......... 20
Figure C-1. Example of a project with multiple equipment and start dates ............................... C-2
Figure C-1A. Example of an LFG generation, collection and utilization curve for project
component A ............................................................................................................................... C-3
Figure C-1B. Example of an LFG generation, collection and utilization curve for project
component B ............................................................................................................................... C-4
Figure C-1C. Example of an LFG generation, collection and utilization curve for project
component C ............................................................................................................................... C-5
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Introduction
The Landfill Gas Energy Cost Model, LFGcost-Web, is a software tool developed for LMOP to
conduct initial economic analyses of prospective landfill gas (LFG) energy recovery projects in
the United States. Analyses performed using LFGcost-Web are considered estimates and
should be used for guidance only. A detailed final feasibility assessment should be conducted
by qualified LFG professionals prior to preparing a system design, initiating construction,
purchasing materials or entering into agreements to provide or purchase energy from an
LFG energy project.
The software was created in Microsoft® Excel to make the computations transparent and to allow
for the model to be efficiently updated as the economics of LFG energy projects mature. This
document describes how to use the LFGcost-Web spreadsheet tool and presents the technical basis
underlying the software methodology.
The various LFG energy project types that can be analyzed in LFGcost-Web include:
New LFG collection and flaring systems (not expansion of existing systems);
Direct-use (boiler, greenhouse, etc.);
Boiler retrofit;
RNG processing plant;
Onsite compressed natural gas (CNG) production and fueling station;
Seven different electricity generation project types:
o Standard turbine-generator sets;
o Standard reciprocating engine-generator sets;
o Microturbine-generator sets;
o Small reciprocating engine-generator sets;
o Combined heat and power (CHP) reciprocating engine-generator sets;
o CHP turbine-generator sets; and
o CHP microturbine-generator sets.
LFGcost-Web is an LFG energy project cost estimating tool developed for EPA’s LMOP.
LFGcost-Web estimates LFG generation rates using a first-order decay equation. This
equation is used to estimate generation potential but cannot be considered an absolute
predictor of the rate of LFG generation. Variations in the rate and types of incoming waste,
site operating conditions and moisture and temperature conditions may provide
substantial variations in the actual rates of generation.
The default inputs and costs estimated by LFGcost-Web are based on typical project designs
and for typical landfill situations. While the model allows a user to adjust certain inputs to
site- and project-specific conditions, the equations within the model are locked to maintain
the integrity of the model. The model attempts to include all equipment, site work, permits,
operating activities and maintenance that would normally be required for constructing and
operating a typical project. However, individual landfills may require unique design
modifications which would add to the cost estimated by LFGcost-Web.
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Using LFGcost-Web
Summary of Revisions
LFGcost-Web, Version 3.5, replaces Version 3.4. Significant revisions between Version 3.5 and
Version 3.4 of LFGcost-Web included:
Updating the economic benefits analysis for Reciprocating Engine and Direct-Use
projects and adding an economic benefits analysis for RNG projects.
Revising the O&M costs for RNG projects to correct for a calculation error.
Removal of the Leachate Evaporator project type given that the cost basis was outdated.
General Instructions and Guidelines
The first worksheet within LFGcost-Web (see INST worksheet) provides important instructions
on the proper use of LFGcost-Web. These instructions include the size ranges over which
LFGcost-Web is expected to be most accurate for a given project type. Within these size ranges
LFGcost-Web is estimated to have an accuracy of ± 30 to 50 percent. Using LFGcost-Web to
evaluate projects outside of these recommended ranges will likely provide cost estimates with a
greater uncertainty. The INST worksheet also provides definitions of input and output parameters,
outlines the organization of LFGcost-Web and summarizes important notes described below
regarding the model and its functionality.
Detailed information about running the model for unique project scenarios is contained in
Appendices C, D and E. Appendix C provides guidance for evaluating projects with multiple
equipment and/or start dates, Appendix D outlines the suggested inputs for local government-
owned projects and Appendix E explains how to set up and interpret results for boiler retrofit
projects.
Inputs
The second worksheet of LFGcost-Web (see INP-OUT worksheet) is where users enter the
required input data for evaluating an LFG energy project. In this worksheet, the Required User
Inputs table allows users to enter the minimum input parameters required for conducting an
economic analysis. The Optional User Inputs table gives users the option to adjust the default
input parameters used by LFGcost-Web. If these optional input parameters are not known for the
project being evaluated, the default parameters should provide a reasonable economic evaluation
of the project.
Outputs
The INP-OUT worksheet summarizes the results of the economic and environmental analysis
performed by LFGcost-Web in the Outputs table. This table has been arranged so users of
LFGcost-Web are able to change the project design and immediately see the resulting change in
economic analysis, without having to switch to another worksheet in LFGcost-Web. Most users of
LFGcost-Web will not need to look at other worksheets in LFGcost-Web when conducting a
routine economic analysis.
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Calculators
LFGcost-Web provides two calculators to assist model users. The Waste Acceptance Rate
Calculator in the WASTE worksheet calculates the average annual waste acceptance rate based
on the amount of waste-in-place and the year representing the time required to accumulate this
waste. Model users who do not know the average annual waste acceptance rate for a particular
landfill can use this calculator to estimate this rate.
The Financial Goals Calculator, located below the Outputs table in the INP-OUT worksheet,
calculates the initial product price that would be required for the project to achieve its financial
goals. It is assumed that financial goals are achieved when the internal rate of return (IRR) equals
the discount rate and the net present value is equal to $0. If a given economic analysis does not
achieve its financial goals or greatly exceeds the goals, model users can use this calculator to
determine the initial product price that is required to pay back the investment within the lifetime
of the project.
Model users must select “Enable Macros” or “Enable Content” when prompted (immediately after
opening the file) to allow the LFGcost-Web software to use the embedded macros that control the
operation of the Financial Goals Calculator. Enabling macros is discussed further in the
“Software Requirements” section below. The Financial Goals Calculator can be used ONLY
when macros are enabled and the Solver Add-in has been installed and loaded within Microsoft®
Excel. Please see the instructions below the Calculate Initial Product Price button in the INP-
OUT worksheet to load the Solver Add-in. This functionality is not compatible with Mac
computers.
Summary Reports
The first summary report (see REPORT worksheet) presents input, output and curve information
similar to data found in the INP-OUT and CURVE worksheets. The printout will be labeled with
the landfill name or identifier that has been entered at the top of the INP-OUT worksheet as well
as the file name and current date. The appropriate initial product price needed to achieve financial
goals must be determined for each LFG energy project scenario using the Financial Goals
Calculator in order for the correct financial goal prices to appear in the report.
The second summary report (see RPT-CASHFLOW worksheet) presents a detailed summary of
the project cash flow analysis using data similar to data found in the ECN worksheet. Given the
detailed nature of this spreadsheet, it may be appropriate to include only for certain scenarios.
The third summary report (see ECON-BEN SUMMARY worksheet) presents the regional
economic benefits and job creation estimates for the following three project types: electricity
generation with standard reciprocating engines, direct-use and injection of RNG into the pipeline.
An Adobe Portable Document Format (PDF) of the summary reports can be created from the
REPORT, RPT-CASHFLOW and/or ECON-BEN SUMMARY worksheets in order to save or
distribute read-only electronic copies. In order to create a PDF of the reports users must have a
printer driver installed on their computer that has the capability to convert files to this format (for
example, PDF995 or Adobe Acrobat). With this PDF printer driver installed, users can follow the
steps listed below to create a PDF of the summary reports.
1. Select the worksheet tab(s) you are interested in printing.
2. Select Print from the menu.
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3. Select the PDF printer driver (e.g., PDF995) from the Printer drop-down menu and click
OK.
4. Once the PDF dialog box appears in a new window, users can preview the report and save
it to a file location of their choice. If using Adobe Acrobat, users can also specify which
worksheets to include in the .pdf file.
More information about downloading and purchasing PDF printer drivers can be obtained at
http://www.pdf995.com/ or https://www.adobe.com.
Software Requirements
LFGcost-Web has been specified as a “Read-Only” file. The “Read-Only” restriction is intended
to protect the original file from being accidentally over-written by users. You need to save a copy
of the LFGcost-Web file under a new file name when running each economic analysis.
The LFGcost-Web model was created in Microsoft® Excel and must be operated in a Microsoft®
Excel 2007, 2010, 2013, 2016 or Office 365 environment. Earlier versions of Microsoft® Excel
are not able to properly run the model due to embedded macros. Several functions operate slowly
when running LFGcost-Web on computers that have a processor speed of 333 MHz or less. This
model was tested on a PC. The Solver functionality does not work on a Mac.
Model users must “Enable Macros” or “Enable Content” when prompted (immediately after
opening the file) to allow the LFGcost-Web software to use the embedded macros.
Microsoft® Excel 2007, 2010, 2013, 2016 and Office 365 users must set their Macro Security Level
to “Disable all macros with notification” (menu select Developer…Macro Security). [If the
Developer menu is not displayed in Excel 2007, click the Microsoft Office Button, select Excel
Options and then in the Popular category, under Top options for working with Excel, select Show
Developer tab in the Ribbon. If the Developer menu is not displayed in Excel 2010, 2013, 2016,
Office 365 on the File menu, select Options and then in the Customize Ribbon category,
under Customize the Ribbon, check the Developer box.] Then, upon opening LFGcost-Web, users
must select “Enable this content” from the Security Warning – Options… box that appears beneath
the menu.
Cost Basis
The costs and economic parameters, such as net present value (NPV), are based on actual or
“nominal” rates and include the effects of inflation. For example, if a project was constructed in
2020 and began operation in 2021, then installed capital costs in the year of construction are in
2020 dollars, operating costs for the initial year of operation are in 2021 dollars and NPV at year
of construction is in 2020 dollars. Within the structure of the various cost estimating worksheets
in LFGcost-Web, the costs for any given year in the life of the project are presented in that specific
year’s dollars.
Cost Scope
The cost estimates produced by LFGcost-Web include all direct and indirect costs associated with
the project. In addition to the direct costs for equipment and installation, LFGcost-Web includes
indirect costs associated with:
Engineering, design and administration;
Site surveys and preparation;
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and economic output in the ECON-BEN SUMMARY sheet. A summary of the multipliers and
how the multipliers were ranked according to their employment and economic output is shown in
Appendices F and G.
The Bureau of Economic Analysis (BEA) does not endorse any resulting estimates and/or
conclusions about the economic impact of a proposed change on an area.
Further Assistance
If you would like assistance using LFGcost-Web, please contact LMOP through the website at
https://www.epa.gov/lmop/forms/contact-us-about-landfill-methane-outreach-program.
Analyses performed using LFGcost-Web are considered estimates and should be used for
guidance only. A detailed final feasibility assessment should be conducted by qualified LFG
professionals prior to preparing a system design, initiating construction, purchasing
materials or entering into agreements to provide or purchase energy from an LFG energy
project.
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LFGcost-Web is designed to accommodate the recommended size ranges given for each type of LFG
energy project. Model output results may not be valid for project sizes outside of the recommended
project size ranges.
Workbook Design – This table summarizes the name and function for each of the
27 worksheets contained in LFGcost-Web, as shown in Table 1 above.
Important Notes – The items listed under Important Notes in the model are described in more
detail in the “Using LFGcost-Web” section above.
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Note: avoided emissions for non-electricity generating projects will be calculated, regardless of selection.
Optional User Inputs – These inputs are initially set to the suggested defaults provided. To edit the
optional inputs, enter the requested input in the Optional User Input Data column. (Note: Data in
the Suggested Default Data column are protected and cannot be edited.)
− LFG energy project size – Pick list to choose LFG flow rate over the project life used to design the LFG
energy project – Minimum, Average, Maximum or Defined by user. When ‘Defined by user’ is selected,
an LFG design flow rate MUST be entered in the input box below the LFG energy project size selection.
The default is for minimum LFG generation. However, the optimum project size will vary for different
project types. You are encouraged to try multiple size options to determine the optimum size for your
project conditions.
- For direct-use projects, the optimum size is often based on the maximum gas flow.
- The optimum size for electricity generation projects (including CHP) is often based on the average
flow.
− For user-defined project size only: Design flow rate – The design LFG flow rate, in cubic feet per
minute, entered for projects sized manually by users. ‘Defined by user’ MUST be selected for LFG energy
project size to indicate the project size is user-defined. A user-defined project size can be entered without
waste data. Since waste data are used to calculate flow rate, you will receive a warning message indicating
that the user-defined project size exceeds the maximum calculated LFG flow rate in cell AG28 of the
FLOW worksheet. Further, if you are using waste data to estimate flow rate, this warning message is
indicating that the landfill may not have enough gas available for this project.
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- OR -
Annual Waste Disposal History – this table allows users to enter yearly waste acceptance rate
data in tons per year for up to 75 years. The waste disposal history should be used only when
year-to-year waste acceptance is known for each year that the landfill operates. In other words,
the annual waste acceptance column must be completed for all years beginning with the landfill
open year and ending with the landfill closure year. The Year and Waste-In-Place columns
within the table are protected and cannot be edited.
− Year – four-digit year with Year 0 being the open year of the landfill.
− Annual waste acceptance – tons of MSW accepted per year for the corresponding year.
− Waste-in-place – a cumulative total of the tonnage of MSW accepted for previous years.
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− Methane collected and destroyed – total annual amount of methane (in cubic feet per year,
ft3/yr) that is collected and either destroyed by the flare or utilized by the LFG energy project.
− Direct methane reduced – total annual amount of methane (in million metric tons carbon
dioxide equivalents per year, MMTCO2E/yr) that is collected and either destroyed by the flare
or utilized by the LFG energy project.
− Methane utilized by project – annual million metric tons of methane (in MMTCO2E/yr) that
is utilized by the LFG energy project.
Actual gas
Methane utilized % methane 0.0423 lbs methane short ton
= utilization * * *
( MMTCO2 E / yr ) in LFG 2, 000
3
3 ft methane lbs
( ft / yr )
0.9072 MT GWP of MMT
* * * 6
short ton methane 10 MT
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RNG projects with vehicle fuel product use the following, assuming an offset of diesel vehicle fuel:
𝑅𝑅𝑅𝑅𝑅𝑅 𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎
𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 𝑔𝑔𝑔𝑔𝑔𝑔 𝑅𝑅𝑅𝑅𝑅𝑅 𝑡𝑡𝑡𝑡𝑡𝑡ℎ𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 1,012 𝐵𝐵𝐵𝐵𝐵𝐵
𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑 % 𝐶𝐶𝐶𝐶4
� � = � 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 � ∗ � �∗� 𝑚𝑚𝑚𝑚𝑚𝑚ℎ𝑎𝑎𝑎𝑎𝑎𝑎 �∗� 3 �
𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 𝑖𝑖𝑖𝑖 𝐿𝐿𝐿𝐿𝐿𝐿 𝑓𝑓𝑓𝑓 𝑚𝑚𝑚𝑚𝑚𝑚ℎ𝑎𝑎𝑎𝑎𝑎𝑎
(𝑓𝑓𝑓𝑓 3 ⁄𝑦𝑦𝑦𝑦 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟 (%)
(𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀2 𝐸𝐸 ⁄𝑦𝑦𝑦𝑦 )
161 𝑙𝑙𝑙𝑙𝑙𝑙 𝐶𝐶𝐶𝐶2 𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 𝑠𝑠ℎ𝑜𝑜𝑜𝑜𝑜𝑜 𝑡𝑡𝑡𝑡𝑡𝑡 0.9072 𝑀𝑀𝑀𝑀 𝑀𝑀𝑀𝑀𝑀𝑀
∗� �∗� �∗� �∗� �∗� 6 �
𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 106 𝐵𝐵𝐵𝐵𝐵𝐵 2,000 𝑙𝑙𝑙𝑙𝑙𝑙 𝑠𝑠ℎ𝑜𝑜𝑜𝑜𝑜𝑜 𝑡𝑡𝑡𝑡𝑡𝑡 10 𝑀𝑀𝑀𝑀
CNG projects:
CNG avoided
Actual gas
carbon dioxide % CH 4 65% Conversion Efficiency LFG CH 4 1,012 Btu
= utilization * * 3
emissions
in LFG CNG CH 4 ft methane
3
( MMTCO E / yr ) ( ft / yr )
2
161 lbs CO2 millionBtu short ton 0.9072 MT MMT
* * * * * 6
millionBtu 10 Btu 2,000 lbs short ton 10 MT
6
Electricity generation
Net electricity
avoided carbon grid − specific lbs CO2 short ton
dioxide emissions = * produced *
kWh 2,000 lbs
(kWh / yr )
( MMTCO E / yr )
2
0.9072 MT MMT
* * 6
short ton 10 MT
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Where,
Qt = landfill gas generation rate at time t (ft3/year)
CH4 = methane content of landfill gas (%)
Lo = potential methane generation capacity of waste (ft3/ton)
R = average annual waste acceptance rate during active life (tons)
k = methane generation rate constant (1/year)
c = time since landfill closure (years)
t = time since the initial waste placement (years)
First-Order Decay Equation for Waste Disposal History (year-to-year acceptance rate):
Qt = Σi [(1/(CH4/100)) * k * Lo * Mi * e(-kti)]
Where,
Qt = landfill gas generation rate at time t (ft3/year)
CH4 = methane content of landfill gas (%)
k = methane generation rate constant (1/year)
Lo = potential methane generation capacity of waste (ft3/ton)
Mi = waste acceptance rate in the ith section (tons)
ti = age of the ith section (years)
The suggested default potential methane generation capacity (Lo) is 3,204 cubic feet per ton
(100 cubic meters per megagram). This default Lo value comes from EPA’s “Compilation of
Air Pollutant Emission Factors”, commonly known as “AP-42”, and is appropriate for most
landfills. Estimation of Lo is generally treated as a function of the moisture and organic content
of the waste. Therefore, it is recommended that users utilize Lo values that differ from these
defaults only when site-specific data are available to reasonably estimate the potential methane
generation capacity for a particular landfill.
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Installed capital cost for heat recovery exchangers)] + ($63 * ft of gas pipeline) + ($106 * ft of
trench for water pipelines) + ($12,000 for circulation pump)
Annual O&M cost
$0.0773 – 0.00987* ln(kW capacity)
(excluding energy)
83% of rated capacity due to parasitic electrical needs of boost compressor
Parasitic loss efficiency
and cooling water pumps, fans and dryer system
14,000 Btu/kWh generated (HHV)
Fuel use rate
(before parasitic uses)
Gross capacity factor* Assume 93%
Hot water production 5,800 Btu/kWh (net) * % utilization of hot water potential
Note: Raw cost data are in 2008$’s.
*
Gross capacity factor accounts for loss of energy production due to problems in the gas collection
system, problems with project equipment, weather related interruptions of the local utilities and
shut-downs at the energy consumer end of the system.
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Optimization for Calculating Initial Product Price Needed to Achieve Financial Goals:
Rows 94-148 These data are used to calculate the initial product price required to achieve the financial
goals of the project. The equations in rows 103-148 duplicate the structure of Rows 45-90
and are used to test various initial product prices for the purpose of converging on a net
present value of $0.
a
Escalation equations use a formula of [1 + ((% escalation after year 1)/100)](year of calculation – 1)
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Gas cleanup/compression unit purchase costs – 10% of overall combined engine/generator/skid costs
94% national manufacturer revenue
6% national distributor fee
Installation costs for clean-up skid and Engine-Generator – 40% of overall combined
engine/generator/skid costs
5.4% national engineering and management labor for clean-up skid ($167/hr, loaded with benefits)
62.5% state-wide installation labor (6.1% for skid materials and 56.4% for engine/generator materials)
($140/hr, loaded with benefits)
32% state-wide installation materials (28% for engine/generator materials and 4% for skid materials)
This worksheet then assigns labor and purchased materials to the BEA 2018 RIMS II multipliers that are most
representative of the materials used in the construction of an LFG energy project. A complete list of multipliers
is shown in Appendix F.
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For evaluating the state and local economic benefits of reciprocating engine projects, the multipliers were
assigned as follows:
Construction Phase
Gas clean-up skid installation materials consist of electrical connections to connect the skid to a source of
energy to power the compressor system. These are assigned to the Electrical Equipment and Appliance
Manufacturing multiplier.
Local labor is assigned to the Households multiplier.
Distributor fees are assigned to the Wholesale Trade multiplier.
This worksheet also estimates the number of state-wide direct jobs created from the design and installation
(cell F11), or operation (cell F34) of an LFG energy project. The number of jobs, in terms of full-time
equivalents (FTE), is estimated using loaded earnings most typical for staff used directly in LFG energy
projects. For design and installation, state-wide labor rates ranged from $95 to $167 per hour, depending on
whether the labor was for engineers, skid installation or generator installation. This analysis assumes 1,850
billable hours per year, equating to 1 job per $175,800 to $309,000 of loaded earnings in 2020$. For O&M,
the labor rate was assumed to be $116,000 per year, or $165,000 per year fully loaded in 2020$. Labor rates
were escalated using the general inflation rate supplied in cell D44 of the INP-OUT sheet.
a
The economic and job benefits for reciprocating engine projects are limited to the energy recovery
portion of the project and exclude the economic and job benefits associated with the construction and
operation of a gas collection system.
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Pipeline costs
25% pipeline capital cost
21% national manufactured materials
4% state-wide distributor fee for materials
75% installation cost
7% state-wide manufactured materials
11% national engineering and management labor
57% state-wide installation labor ($97/hr, loaded with benefits)
This worksheet then assigns labor and purchased materials to the BEA 2018 RIMS II multipliers that are most
representative of the materials used in an LFG energy project. A complete list of multipliers is shown in
Appendix F.
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For evaluating the state and local economic benefits of direct-use projects, the multipliers were assigned as
follows:
Construction Phase
Gas clean-up skid installation materials consist of electrical connections to connect the skid to a source of
energy to power the compressor system. These are assigned to the Electrical Equipment and Appliance
Manufacturing multiplier.
Distributor fees are assigned to the Wholesale Trade multiplier.
Local labor is assigned to the Households multiplier.
Pipeline installation materials include soil aggregate materials needed to properly line and re-surface the
trench. These are assigned to the Other Nonmetallic Mineral Mining and Quarrying multiplier.
This worksheet also estimates the number of state-wide direct jobs created from the design and installation
(cell F16), or operation (cell F31) of an LFG energy project. The number of jobs, in terms of FTE, is estimated
using loaded earnings most typical for staff used directly in LFG energy projects. For design and installation,
state-wide labor rates ranged from $95 to $97 per hour, depending on whether the labor was for engineers, site
operators or equipment installation. This analysis assumes 1,850 billable hours per year, equating to 1 job per
$175,800 to $179,600 of loaded earnings in 2020$. For O&M, the labor rate was assumed to be $55,000 per
year, or $78,300 per year fully loaded in 2020$. Labor rates were escalated using the general inflation rate
supplied in cell D44 of the INP-OUT sheet.
a
The economic and job benefits for direct-use projects are limited to the energy recovery portion of the
project and exclude the economic and job benefits associated with the construction and operation of a
gas collection system.
45
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For projects with design flow rates of 4,000 scfm up to the maximum size suggested by the model of
6,000 scfm, the labor is estimated at three FTE positions, each with a starting salary of $55,000.
Considering benefits of 29.8%, the loaded salary for these three positions is $235,000. Labor is
escalated using the general inflation rate in the model.
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Additional labor may be needed if RNG projects also incorporate full-time wellfield operators as part of
the project operation, but that labor is not included in the economic impact analysis of this model.
After labor has been subtracted from the total estimated O&M costs, the remainder of the O&M costs
for a given project size are assigned as follows:
10% national proprietary manufactured materials (skid components or media that may need to be
replaced)
20% state purchased O&M materials (oil filters, lubricants, wiring)
16% national manufactured materials
4% state-wide distributor fee
30% national labor for professional services labor ($167/hr, loaded with benefits), certification/audit
services for environmental credits, legal, laboratory testing fees to ensure RNG meets pipeline
specifications)
40% insurance premiums (assumed to be state-level payments given state regulation of insurance
markets)
Utilities
100% of the electricity cost is purchased state-wide electricity for electricity to operate gas processing
equipment and pipeline injection
100% of the annual pipeline injection tariff is purchased state-wide natural gas distribution fees
This worksheet then assigns labor and purchased materials to the BEA 2018 RIMS II multipliers that are most
representative of the materials used in the construction of an LFG energy project. A complete list of multipliers
is shown in Appendix F.
For evaluating the state and local economic benefits of RNG projects, the multipliers were assigned as follows:
Construction Phase
− Gas processing equipment skid installation materials consist of electrical connections to connect the skid to
a source of energy to power the compressor system. These are assigned to the Electrical Equipment and
Appliance Manufacturing multiplier.
− Distributor fees are assigned to the Wholesale Trade multiplier.
− Local labor is assigned to the Households multiplier.
− Pipeline installation materials include soil aggregate materials needed to properly line and re-surface the
trench. These are assigned to the Other Nonmetallic Mineral Mining and Quarrying multiplier.
− RNG pipeline interconnection fee if entered by the user is assigned to the Natural Gas Distribution multiplier.
Operation and Maintenance Phase
Distributor fees are assigned to the Wholesale Trade multiplier.
Local labor is assigned to the Households multiplier.
Electricity purchased is assigned to the Electric Power Generation, Transmission and Distribution multiplier.
RNG pipeline injection fee is assigned to the Natural Gas Distribution multiplier.
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This worksheet also estimates the number of state-wide direct jobs created from the design and installation (cells
F17 and F24), or operation (cell F43) of an LFG energy project. The number of jobs, in terms of FTE, is estimated
using loaded earnings most typical for staff used directly in LFG energy projects. State-wide labor rates ranged
from $89 to $167 per hour, depending on whether the labor was for engineers, site operators or equipment
installation.
For design and installation, as well as national specialty labor during O&M that is expected to be contracted out,
this analysis assumes 1,850 billable hours per year, equating to 1 job per $175,800 to $309,000 of loaded earnings
in 2020$. For local O&M, the labor rate was assumed to be $55,000 per year, or $78,300 per year fully loaded
in 2020$. These are full-time positions and the number of people depends on the size of the project. Labor rates
were escalated using the general inflation rate supplied in cell D44 of the INP-OUT sheet.
a
The economic and job benefits for RNG projects are limited to the energy recovery portion of the
project and exclude the economic and job benefits associated with the construction and operation of a
gas collection system.
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LFGcost-Web User’s Manual Version 3.5
The first set of tables (rows 7-15) summarize the total economic benefits resulting from a direct-use,
reciprocating engine or RNG project (depending upon which type of project the user is evaluating), excluding
any benefits from the construction and operation of the gas collection and control system infrastructure). The
left table presents benefits during the project construction phase (a one-time economic benefit) and the right
table presents annual benefits from the O&M of a project.
Total economic benefits have three components: direct, indirect and induced.
• Direct effects result from onsite jobs and new purchases from state and local businesses that are required
to build and operate the project.
• Indirect effects occur as those state and local businesses spend their new revenue on supplies or to pay
their employees.
• Induced effects result when employees spend their paychecks and, for larger projects, when people
migrate to the area.
Each layer of spending generates new income to firms and families in the region and to the overall national
economy. The first set of tables show the benefits for a specific state in which the project was constructed, if
the user selected a state on the BUDGET-DIR, BUDGET-ENG or BUDGET-RNG sheet. It also shows the
benefits for states representing a low, median and high range of output and job creation.
The second set of tables (rows 20-30) provide a detailed summary of the relative contributions of direct
economic benefits compared to economic “ripple effects” benefits.
Estimates are based on BEA 2018 RIMS II multipliers that are most representative of the materials used in an
LFG energy project. BEA does not endorse any resulting estimates and/or conclusions about the economic
impact of a proposed change on an area.
a
The economic and job benefits for direct-use, reciprocating engine and RNG projects are limited to the
energy recovery portion of the project and exclude the economic and job benefits associated with the
construction and operation of a gas collection system.
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Appendix A:
Default Value Documentation
LFGcost-Web User’s Manual Version 3.5
A-1
LFGcost-Web User’s Manual Version 3.5
A-2
LFGcost-Web User’s Manual Version 3.5
1
U.S. Energy Information Administration. Annual Energy Outlook 2020. Electric Power Projections by Electricity
Market Module Region. Accessed July 10, 2020. https://www.eia.gov/outlooks/aeo/data/browser/#/?id=62-
AEO2020®ion=5-0&cases=ref2020&start=2019&end=2034&f=A&linechart=ref2020-d112119a.5-62-
AEO2020.5-0&sourcekey=0.
2
U.S. Energy Information Administration. Annual Energy Outlook 2020. January 29, 2020. Page 43.
https://www.eia.gov/outlooks/aeo/pdf/aeo2020.pdf.
3
U.S. Energy Information Administration. Annual Energy Outlook 2020. Natural Gas Supply, Disposition, and
Prices. Accessed July 10, 2020. https://www.eia.gov/outlooks/aeo/data/browser/#/?id=13-
AEO2020&sourcekey=0.
A-3
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Appendix B:
Common Abbreviations
LFGcost-Web User’s Manual Version 3.5
B-1
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B-2
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Appendix C:
Evaluating Projects with
Multiple Equipment and/or Start Dates
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integrity check can be conducted easily using LFGcost-Web’s graphical output in the CURVE
worksheet. Model users should compile the graphs generated by LFGcost-Web for each
component to confirm that the net gas use in any given year does not exceed the gas output of the
landfill. Figure C-1 illustrates how graphs from three LFG energy project components can be
manually compiled by users to confirm that the components do not exceed the LFG generation
capacity. Figures C-1A, C-1B and C-1C are the curves generated by LFGcost-Web for each
individual project component – A, B and C, respectively – compiled in Figure C-1. In this example,
the size of project components B and/or C might be increased by as much as 50 percent and not
exceed the gas generation potential of the landfill.
450
Average Annual Landfill Gas Flow Rate (ft3/min)
400
350
300
250
200
C
150
100
A B
50
0
2000 2005 2010 2015 2020 2025 2030 2035 2040 2045
Year
Figure C-1. Example of a project with multiple equipment and start dates
C-2
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450
400
Average Annual Landfill Gas Flow Rate (ft /min)
350
3
300
250
200
150
100
50
0
2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031
Year
Figure C-1A. Example of an LFG generation, collection and utilization curve for
project component A
C-3
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450
400
Average Annual Landfill Gas Flow Rate (ft /min)
350
3
300
250
200
150
100
50
0
2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036
Year
Figure C-1B. Example of an LFG generation, collection and utilization curve for
project component B
C-4
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450
400
Average Annual Landfill Gas Flow Rate (ft 3 /min)
350
300
250
200
150
100
50
0
2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036
Year
Figure C-1C. Example of an LFG generation, collection and utilization curve for
project component C
C-5
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Appendix D:
Evaluating Local Government-Owned Projects
LFGcost-Web User’s Manual Version 3.5
D-1
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Appendix E:
E-1
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Appendix F:
Economic Multipliers for
Economic Benefits and Job Creation Analysis
Appendix F: Economic Multipliers for Economic Benefits and Job Creation Analysis
Series: 2012 U.S. Benchmark I-O data and 2018 Regional Data (Type II Multipliers: Direct + Indirect + Induced)
Estimates are based on BEA 2018 RIMS II multipliers that are most representative of the materials used in an LFG energy project. BEA does not endorse any
resulting estimates and/or conclusions about the economic impact of a proposed change on an area.
F-1
Appendix F: Economic Multipliers for Economic Benefits and Job Creation Analysis
Series: 2012 U.S. Benchmark I-O data and 2018 Regional Data (Type II Multipliers: Direct + Indirect + Induced)
Plastics Pipe, Pipe Fitting, and
Unlaminated Profile Shape Other Nonmetallic Mineral Mining and Electrical Equipment and Appliance
Manufacturing (326120) Quarrying (2123A0) Manufacturing (14)
Estimates are based on BEA 2018 RIMS II multipliers that are most representative of the materials used in an LFG energy project. BEA does not endorse any
resulting estimates and/or conclusions about the economic impact of a proposed change on an area.
F-2
Appendix F: Economic Multipliers for Economic Benefits and Job Creation Analysis
Series: 2012 U.S. Benchmark I-O data and 2018 Regional Data (Type II Multipliers: Direct + Indirect + Induced)
Electric Power Generation, Trans, and Other Motor Vehicle Parts Professional, Scientific, and Technical
Dist (2211AO) Manufacturing (336390) Services (50)
Estimates are based on BEA 2018 RIMS II multipliers that are most representative of the materials used in an LFG energy project. BEA does not endorse any
resulting estimates and/or conclusions about the economic impact of a proposed change on an area.
F-3
Appendix F: Economic Multipliers for Economic Benefits and Job Creation Analysis
Series: 2012 U.S. Benchmark I-O data and 2018 Regional Data (Type II Multipliers: Direct + Indirect + Induced)
Natural Gas Distribution (221200) Insurance Carriers, Except Direct Life Insurance (5241XX)
Estimates are based on BEA 2018 RIMS II multipliers that are most representative of the materials used in an LFG energy project. BEA does not endorse any
resulting estimates and/or conclusions about the economic impact of a proposed change on an area.
F-4
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Appendix G:
Ranking Analysis for
Economic Multipliers
Appendix G: Ranking Analysis for Economic Multipliers
Electrical Insurance
Other Nonmetallic Equipment and Carriers, Except
Mineral Mining Appliance Electric Power Natural Gas Direct Life
Wholesale Trade and Quarrying Manufacturing Generation, Trans, Distribution Insurance
State Households (64) (420000) (2123A0) (14) and Dist (2211AO) (221200) (5241XX) Average Std Dev Range Overall Rank
Texas 1 1 1 2 1 1 1 1 0 1 1
Illinois 2 2 2 1 5 13 2 4 4 12 2
Pennsylvania 7 10 3 4 3 5 9 6 3 7 3
Tennessee 3 4 5 5 13 18 5 8 6 15 4
Ohio 6 9 4 3 8 16 11 8 4 13 5
Utah 8 7 7 18 4 6 7 8 5 14 5
Colorado 5 5 6 25 2 2 14 8 8 23 7
Georgia 4 3 8 12 20 17 3 10 7 17 8
New Jersey 9 8 12 15 23 20 6 13 6 17 9
California 12 6 16 21 12 14 15 14 5 15 10
Minnesota 17 14 9 16 26 25 10 17 7 17 11
Arizona 10 13 25 23 17 22 8 17 7 17 12
Indiana 16 19 10 7 15 31 30 18 9 24 13
North Carolina 13 11 19 9 31 28 17 18 8 22 13
Kentucky 22 28 15 11 9 24 23 19 7 19 15
Florida 11 12 23 31 28 26 4 19 10 27 16
Missouri 14 16 20 20 25 29 12 19 6 17 17
Alabama 29 31 18 10 11 23 18 20 8 21 18
Louisiana 31 35 14 30 7 4 19 20 12 31 18
Kansas 23 22 11 38 18 7 22 20 10 31 20
Michigan 18 15 13 8 33 21 37 21 11 29 21
South Carolina 15 18 21 6 29 33 32 22 10 27 22
Oklahoma 27 27 17 36 6 3 38 22 14 35 22
Wisconsin 24 23 22 14 36 37 13 24 9 24 24
Massachusetts 21 20 30 19 40 32 21 26 8 21 25
Virginia 20 17 29 37 24 30 34 27 7 20 26
Connecticut 35 25 32 17 44 38 16 30 11 28 27
Mississippi 37 39 26 24 21 19 41 30 9 22 27
Oregon 28 24 27 26 34 39 33 30 5 15 29
Washington 25 29 28 29 30 35 40 31 5 15 30
Maryland 19 21 40 43 37 34 26 31 9 24 31
New Hampshire 32 32 34 13 47 43 20 32 12 34 32
Montana 45 44 35 46 16 8 31 32 15 38 33
Arkansas 40 37 24 22 32 27 46 33 9 24 34
New York 30 26 38 33 41 36 28 33 5 15 35
North Dakota 47 47 36 45 14 10 36 34 16 37 36
Nebraska 38 33 31 34 38 40 24 34 5 16 37
New Mexico 41 45 42 44 10 9 48 34 17 39 38
West Virginia 49 49 33 32 19 12 47 34 15 37 39
Maine 33 34 45 39 42 41 25 37 7 20 40
Rhode Island 34 38 41 28 49 44 27 37 8 22 41
Hawaii 26 36 39 47 35 42 43 38 7 21 42
Iowa 43 40 37 27 48 47 29 39 8 21 43
Alaska 46 48 46 50 22 11 49 39 16 39 44
Nevada 36 30 44 35 45 46 39 39 6 16 45
Wyoming 50 50 48 48 27 15 50 41 14 35 46
Estimates are based on BEA 2018 RIMS II multipliers that are most representative of the materials used in an LFG energy project. BEA does not endorse any resulting estimates and/or conclusions about the economic impact of a proposed change on an area.
G-1
Appendix G: Ranking Analysis for Economic Multipliers
Electrical Insurance
Other Nonmetallic Equipment and Carriers, Except
Mineral Mining Appliance Electric Power Natural Gas Direct Life
Wholesale Trade and Quarrying Manufacturing Generation, Trans, Distribution Insurance
State Households (64) (420000) (2123A0) (14) and Dist (2211AO) (221200) (5241XX) Average Std Dev Range Overall Rank
Idaho 39 41 47 41 39 45 45 42 3 8 47
Delaware 42 42 43 49 43 49 42 44 3 7 48
South Dakota 48 43 49 42 46 48 35 44 5 14 49
Vermont 44 46 50 40 50 50 44 46 4 10 50
High Multiplier: 25th percentile. Looked for states with an overall rank between 9 and 15 for both employment and output after averaging the rank
of the seven regional multipliers. Arizona output rank = 12, employment rank = 13 (yellow highlight) was selected. North Carolina is the only other
state in yellow for this grouping; output rank = 13, employment rank = 11 (however, we used Arizona because the average rank of 12.5 is closer to
the 25th percentile (12.5) than the average rank of 12 for North Carolina).
Median Multiplier: 50th percentile. Looked for states with an overall rank between 22 and 29 for both employment and output after averaging the
rank of the seven regional multipliers (blue highlight). Wisconsin is the only state in the middle for both output and employment.
Low Multiplier: 75th percentile. Looked for states with an overall rank between 36 and 43 for both employment and output after averaging the
rank of the seven regional multipliers (pink highlight). West Virginia output rank = 39, employment rank = 38 (pink highlight) was selected. Rhode
Island is the only other state in pink for this grouping; output rank = 41, employment rank = 42 (however, we used West Virginia because the
average rank of 38.5 is closer to the 75th percentile (37.5) than the average rank of 41.5 for Rhode Island).
Estimates are based on BEA 2018 RIMS II multipliers that are most representative of the materials used in an LFG energy project. BEA does not endorse any resulting estimates and/or conclusions about the economic impact of a proposed change on an area.
G-2
Appendix G: Ranking Analysis for Economic Multipliers
Electrical Insurance
Other Nonmetallic Equipment and Carriers, Except
Mineral Mining Appliance Electric Power Natural Gas Direct Life
Wholesale Trade and Quarrying Manufacturing Generation, Trans, Distribution Insurance
State Households (64) (420000) (2123A0) (14) and Dist (2211AO) (221200) (5241XX) Average Std Dev Range Overall Rank
Texas 1 2 3 2 1 1 4 2 1 3 1
Utah 4 4 1 23 3 4 1 6 8 22 2
Colorado 7 8 2 7 4 3 11 6 3 9 3
Florida 3 3 9 6 14 16 2 8 6 14 4
Georgia 2 1 22 8 6 15 3 8 8 21 5
South Carolina 5 5 14 4 11 23 7 10 7 19 6
Ohio 6 6 30 1 8 17 14 12 10 29 7
Alabama 16 13 16 12 7 9 9 12 4 9 7
Louisiana 18 20 5 21 5 5 10 12 7 16 9
Oklahoma 13 10 34 20 2 2 13 13 11 32 10
North Carolina 9 7 15 10 20 20 15 14 5 13 11
Pennsylvania 17 22 4 5 13 12 23 14 8 19 11
Arizona 8 9 37 16 10 13 5 14 11 32 13
Tennessee 10 11 28 9 16 18 8 14 7 20 14
Illinois 11 14 32 15 18 21 18 18 7 21 15
Mississippi 30 30 8 14 12 11 25 19 9 22 16
Indiana 19 18 25 3 19 26 21 19 8 23 17
Maine 15 12 20 17 26 25 17 19 5 14 18
Michigan 14 15 12 18 25 22 27 19 6 15 19
Missouri 12 23 6 26 23 32 22 21 9 26 20
Montana 24 31 35 30 17 7 6 21 12 29 21
Wisconsin 20 16 29 11 32 34 12 22 10 23 22
Idaho 22 21 23 19 24 31 28 24 4 12 23
Arkansas 35 24 10 25 22 19 35 24 9 25 24
Minnesota 21 29 26 22 29 27 24 25 3 8 25
Kentucky 27 26 18 35 15 24 36 26 8 21 26
New Mexico 26 34 41 29 9 6 37 26 14 35 27
California 25 19 24 33 28 28 31 27 5 14 28
Kansas 34 35 19 43 21 8 33 28 12 35 29
Oregon 28 28 7 27 38 40 32 29 11 33 30
Virginia 23 27 27 31 31 38 30 30 5 15 31
Nebraska 33 32 17 32 40 43 20 31 10 26 32
South Dakota 40 37 42 13 41 37 16 32 12 29 33
Hawaii 32 25 44 24 34 33 34 32 7 20 33
Nevada 29 17 40 44 37 36 26 33 9 27 35
Iowa 37 33 38 34 42 42 19 35 8 23 36
Alaska 46 42 21 40 33 29 48 37 10 27 37
West Virginia 45 44 47 46 27 10 42 37 14 37 38
New Jersey 31 36 45 36 39 39 39 38 4 14 39
Washington 42 38 46 28 36 35 41 38 6 18 40
New Hampshire 44 46 11 39 47 46 44 40 13 36 41
Rhode Island 39 47 13 47 44 41 47 40 12 34 42
Vermont 36 39 33 37 48 48 38 40 6 15 43
Wyoming 47 45 50 49 30 14 46 40 13 36 44
North Dakota 49 49 49 45 35 30 29 41 9 20 45
Connecticut 43 41 31 38 46 45 45 41 5 15 46
Estimates are based on BEA 2018 RIMS II multipliers that are most representative of the materials used in an LFG energy project. BEA does not endorse any resulting estimates and/or conclusions about the economic impact of a proposed change on an area.
G-3
Appendix G: Ranking Analysis for Economic Multipliers
Electrical Insurance
Other Nonmetallic Equipment and Carriers, Except
Mineral Mining Appliance Electric Power Natural Gas Direct Life
Wholesale Trade and Quarrying Manufacturing Generation, Trans, Distribution Insurance
State Households (64) (420000) (2123A0) (14) and Dist (2211AO) (221200) (5241XX) Average Std Dev Range Overall Rank
Massachusetts 41 43 36 41 45 47 40 42 4 11 47
Maryland 38 40 48 48 43 44 43 43 4 10 48
New York 48 48 43 42 49 49 49 47 3 7 49
Delaware 50 50 39 50 50 50 50 48 4 11 50
High Multiplier: 25th percentile. Looked for states with an overall rank between 9 and 15 for both employment and output after averaging the rank
of the seven regional multipliers. Arizona output rank = 12, employment rank = 13 (yellow highlight) was selected. North Carolina is the only other
state in yellow for this grouping; output rank = 13, employment rank = 11 (however, we used Arizona because the average rank of 12.5 is closer to
the 25th percentile (12.5) than the average rank of 12 for North Carolina).
Median Multiplier: 50th percentile. Looked for states with an overall rank between 22 and 29 for both employment and output after averaging the
rank of the seven regional multipliers (blue highlight). Wisconsin is the only state in the middle for both output and employment.
Low Multiplier: 75th percentile. Looked for states with an overall rank between 36 and 43 for both employment and output after averaging the
rank of the seven regional multipliers (pink highlight). West Virginia output rank = 39, employment rank = 38 (pink highlight) was selected. Rhode
Island is the only other state in pink for this grouping; output rank = 41, employment rank = 42 (however, we used West Virginia because the
average rank of 38.5 is closer to the 75th percentile (37.5) than the average rank of 41.5 for Rhode Island).
Estimates are based on BEA 2018 RIMS II multipliers that are most representative of the materials used in an LFG energy project. BEA does not endorse any resulting estimates and/or conclusions about the economic impact of a proposed change on an area.
G-4