Each Risk Management action alternative will be assessed for cost for its implementation, operation and maintenance, by considering the following criteria, as appropriate:
- Cost of the risk management action including:
- Capital costs - direct (construction -equipment, labor and materials ) & indirect (non-construction and overhead for engineering, financial and other services
- Annual operation and maintenance costs (O&M)
- Costs of any periodic review requirements
- Net present value of all of the above
- Future costs estimated by a discount rate (7.5% with a range of 6% to 9%) for the next 30 years
- Costs and the benefits to human health and the environment
- Costs and the benefits to the existing and future beneficial uses of natural resources
- The degree of sensitivity and uncertainty of the costs
- Any other information relevant to how reasonable costs are
The cost analysis is normally made on the basis of engineering judgment, and each process is evaluated as to whether costs are high, medium, or low relative to other process options in the same technological category.
