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At least 217 records · Page 12

AI-Enabled Robots for Automated Nondestructive Evaluation and Repair of Power Plant Boilers. Final Report

Boiler failure could cause loss of life and safety issues, cost hundreds of thousands of dollars in equipment repairs, property damage and production losses, and drive up the cost of electric power. Boiler maintenance is challenging and risky for inspectors working on scaffolding in confined hazardous spaces inside of a boiler and sometimes the space is hard to access. The operation is also time-consuming due to the large area of vertical structures for inspection and the tremendous effort needed for scaffolding. Recently, the use of robotics (e.g., drones and crawlers) in power plants for maintenance is growing rapidly. However, the existing robotics solutions show two notable technological gaps: no live repair capability, and no Artificial Intelligence (AI) for smart autonomy. The objective of this project is to develop an integrated autonomous robotic platform that is equipped with compact non-destructive evaluation (NDE) sensors to perform live inspection, operates onboard repair devices to perform live repair, and uses AI for intelligent data fusion and predictive analysis for automated and smart spatiotemporal inspection, analysis and repair of the furnace walls in coal-fired boilers. The approach to achieve the objective includes developing NDE sensors with signal processing techniques, designing and evaluating repair devices for robots based on fusion and solid-state technologies, and an autonomous robotic platform that can attach to and navigate on boiler furnace walls using magnetic drive tracks. The robot is also powered by AI to automate data gathering (e.g., 3D mapping and damage localization) and predictive analysis. This project has advanced the state-of-the-art by providing technological breakthroughs including compact NDE and repair tools for robots, AI capabilities for smart autonomy, and a robotic platform for automated boiler maintenance. This project has great potential to result in significant benefits including limiting or eliminating the need to send operators to assess difficult-to-access or hazardous areas, enabling automated live inspection and repair, avoiding time consuming scaffolding (especially for partial maintenance during unplanned outage), collecting comprehensive and well-organized data smartly, and avoiding or limiting the need for onsite or remote piloting technicians. The impacts can be tremendous in terms of the time and cost savings, reducing the risk for human operators, and increasing boiler reliability, usability, and efficiency. In addition, by developing the new technologies on the autonomous inspection and repair robot, by involving multiple undergraduate and graduate students working together with the faculty members on this project, and by generating knowledge and building up collaborations with industrial partners, this effort will significantly update the education capabilities, support long-term fundamental research, and maintain the leadership of Colorado School of Mines and Michigan State University in energy fields.

20 FOSSIL-FUELED POWER PLANTS↗

Quantifying Uncertainty in PV Energy Estimates Final Report

Uncertainty in PV energy estimates is "one of the most critical areas of lack of understanding" according to independent engineers, financiers, PV model developers, and other industry stakeholders. The primary problem is a lack of rigorous, transparent, widely accepted methods for quantifying uncertainty in energy production estimates. Uncertainty in energy production estimates arises from variability of the solar resource, inexact PV performance models and their parameters, and system reliability considerations. Uncertainty in annual energy production is frequently calculated for larger projects in order to quantify financial risk. Key statistics for energy, such as the P-values "P50" and "P90" (the annual energy values that are exceeded in future years with 50\% and 90\% probability, respectively) are used by financing institutions to calculate the repayment risk for the project. The current methods to estimate these statistics are typically proprietary, specialized, and involve significant post-processing of commercial performance model results. This black-box approach leads to inconsistent P-value estimates from different parties, which reduces investors' confidence in the results. Since the financial community bases its risk assessment on these estimates, reduced confidence increases perceived project risk, and consequently financing costs. The goal of this project was to establish a set of best practices for quantifying uncertainty in energy production estimates, including identifying what sources of uncertainty must be considered with clear definitions and metrics, determining which sources are the biggest drivers of uncertainty, and providing a computationally efficient framework for combining different sources of uncertainty that is flexible enough to accommodate substitutions of data or methods when better information is available. We engaged a wide set of stakeholders to ensure industry endorsement and adoption, and leveraged complementary projects investigating individual sources of uncertainty in great detail, as well as others' work that started down this path.

ENERGY PLANNING, POLICY, AND ECONOMY,SOLAR ENERGY↗

Next-Generation Intensity-Duration-Frequency Curves for Climate-Resilient Infrastructure Design: Advances and Opportunities

National and international security communities (e.g., U.S. Department of Defense) have shown increasing attention for innovating critical infrastructure and installations due to recurring high-profile flooding events in recent years. The standard infrastructure design approach relies on local precipitation-based intensity-duration-frequency (PREC-IDF) curves that do not account for snow process and assume stationary climate, leading to high failure risk and increased maintenance costs. This paper reviews the recently developed next-generation IDF (NG-IDF) curves that explicitly account for the mechanisms of extreme water available for runoff including rainfall, snowmelt, and rain-on-snow under nonstationary climate. The NG-IDF curve is an enhancement to the PREC-IDF curve and provides a consistent design approach across rain- to snow-dominated regions, which can benefit engineers and planners responsible for designing climate-resilient facilities, federal emergency agencies responsible for the flood insurance program, and local jurisdictions responsible for developing design manuals and approving subsequent infrastructure designs. Further, we discuss the recent advances in climate and hydrologic science communities that have not been translated into actional information in the engineering community. To bridge the gap, we advocate that building climate-resilient infrastructure goes beyond the traditional local design scale where engineers rely on recipe-based methods only; the future hydrologic design is a multi-scale problem and requires closer collaboration between climate scientists, hydrologists, and civil engineers.

54 ENVIRONMENTAL SCIENCES↗

Mobile Hot Cell Digital Twin using Immersive Virtual Environment

Sealed radioactive sources are utilized for a wide range of applications across nuclear facilities, universities, hospitals, and industry. When these sources reach the end of their serviceable life, they become waste. This radioactive waste then goes through a process of recapture and then transfer to long term storage. With the advancement of technology in conjunction with better accessibility of technology, industries are exploring the use of digital automation to enhance productivity, efficiency, and safety while minimizing operation and maintenance costs, health and environmental risks, and uncertainty in the project life cycles. One area for exploration and the use of Digital Twin for providing a robust, versatile, and safe solution for recapturing spent sources.

61 RADIATION PROTECTION AND DOSIMETRY↗

Accelerating Nuclear Facility Mission Completion Through an Improved Chemical Hazard Control Strategy - 20460

Code of Federal Regulation (CFR) 10 CFR 830, Nuclear Safety Management [1], explicitly identifies hazardous materials in addition to radioactive materials when establishing the scope of materials that must be evaluated in Hazard Category (HC) 1, 2, and 3 nuclear facilities. This inclusion has led to a near decade-long progression of more and more rigorous application of chemical hazard controls in these facilities. The progressive addition of more rigorous chemical hazard controls has occurred across the Department of Energy (DOE) Complex, having been driven by contractors and regulators alike. However, chemical hazards in other DOE facilities have been, and continue to be, controlled using traditional industrial safety centered strategies. Thus, identical chemical hazards are controlled using dramatically different approaches based solely on the facility type. Not only are the controls different, the analysis and derivation rigor and requirements are also significantly different. In particular, chemical control derivation and application in non-nuclear facilities are much less onerous than the comprehensive hazard analysis process used in nuclear facilities, even in circumstances in which chemicals are not initiators to, or do not exacerbate a nuclear event. While the derivation and control approaches used in these two types of facilities are disparate, the safety results are similarly effective based on a review of reported chemical events from 2014 through 2018. While both approaches achieve comparable safety outcomes, the approach used in nuclear facilities results in significantly greater preparation costs and implementation costs. Furthermore, the problem with the differing approach is not relegated to the control preparation and implementation burden. The operational impact of potentially unnecessary controls slows mission completion without a corresponding increase in safety, not to mention the dilution of the importance of Technical Safety Requirements. The proposed solution must first include a critical and thorough examination of DOE Complex and top-tier chemical industry chemical hazard control practices, coupled with a similar examination of the driving facility regulatory requirements. Results from the examination can then be used to fuel a bold departure from current chemical control practices in Hazard Category 1, 2, and 3 nuclear facilities. Development of an improved and consistent chemical hazard control process would follow, one that continues to ensure safety while accelerating mission completion and significantly reducing the burden associated with chemical hazard control development and implementation. The improved process must establish a hierarchy where radiological hazards are addressed using safety class and safety significant controls and chemical hazards are addressed using overarching safety management programs (with limited unique exceptions). The improved Hazard Category 1,2, and 3 nuclear facility chemical hazard control strategy, while compliant with 10 CFR 830 [1], would be founded on the requirements in 10 CFR 851, Worker Safety and Health Program [2], and the complementary DOE O 151.1D, Comprehensive Emergency Management System [3]. In this way, the Hazard Category 1, 2, and 3 nuclear facility chemical hazard control strategy would, wherever appropriate, be the same process used at other DOE Complex facilities. Ultimately, the improved process will maintain safety and significantly reduce costs and life cycle risk through faster mission completion. (authors)

12 MANAGEMENT OF RADIOACTIVE AND NON-RADIOACTIVE W↗

Development of a Technical, Economic, and Risk Assessment Tool for the Evaluation of Work Reduction Opportunities

Efficient and cost-effective operation of a nuclear power plant (NPP) is essential to ensuring long-term economical and safe operation. Multiple cost saving opportunities exist, referred to here as work reduction opportunities (WRO). These WROs reduce plant operating costs by employing various cost-effective strategies (e.g., implementation of modern technologies). Identifying and objectively screening WROs is an essential task to help reduce overall costs. However, there is no comprehensive framework for assessing WROs in the nuclear industry and evaluating their impact on plant operations. This report presents a novel framework for systematically evaluating WROs from a technical, economic, and risk perspective. As NPPs continue to add new technology and implement modernization strategies into their current processes, potential WROs are commonly identified. Although most WROs have the potential to reduce costs, not all opportunities will result in significant cost savings due to unforeseen risks, large implementation costs, or benefits that fall short of expectations. Examples of this can be the result of a technology that is not fully developed, uncertainty in the amount of cost reduction, or difficulties introducing a new process into an organization. These uncertainties can manifest several ways and can result in a WRO with limited cost savings or even a loss of investment. The framework developed emphasizes the importance of effectively screening the WROs from a holistic perspective to objectively identify inefficiencies and ensure a positive impact to the organization. This report presents the Technical, Economic, and Risk Assessment (TERA) as a key methodology for the screening and evaluation of potential WROs. The TERA framework begins with a screening phase where the process is examined through a hybrid combination of Lean Six Sigma and Integrated Operations for Nuclear (ION) guiding principles. This framework examines the current processes using the Lean Six Sigma SIPOC (Suppliers, Inputs, Process, Outputs, Consumers) methodology but retains the ION key elements of People, Technology, Process, and Governance as important factors to the nuclear decision-making process. By combining the principles of Lean Six Sigma and ION, the developed screening process is specific to the nuclear industry in that it systematically evaluates WROs in order to implement new technology that is comprehensively evaluated. The TERA begins by mapping current processes as they relate to WROs and examining the inefficiencies. Furthermore, the created process map can be used to identify and evaluate potential solutions. Using key performance indicators (KPIs), the TERA evaluates each area—technology, economics, and risk—for uncertainties and to perform cost-benefit analysis. The results of the TERA are important KPIs that allow for an evaluation of different processes and technology implementations. This assessment enables decision-makers to compare various WROs based on metrics and then make informed decisions for which opportunity to implement first. This research includes not only the creation of the TERA framework, but also the evaluation of its performance. A case study for screening potential WROs at Southern Nuclear Company is presented that utilizes the TERA methodology. Through the use of TERA, various WROs were screened, and the solutions evaluated for cost-benefit expectations. The report concludes by summarizing the overall effort and implications for utility modernization. The performance of the screening and TERA are discussed as well as the impact on the nuclear industry. The TERA process enables utilities to evaluate and inform investment decisions for WROs and mitigate any potential risks. Through this research, we provide utilities with a valuable framework to optimize operations, reduce costs, and drive continuous process improvement.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

Budget constrained machine learning for early prediction of adverse outcomes for COVID-19 patients

Abstract The combination of machine learning (ML) and electronic health records (EHR) data may be able to improve outcomes of hospitalized COVID-19 patients through improved risk stratification and patient outcome prediction. However, in resource constrained environments the clinical utility of such data-driven predictive tools may be limited by the cost or unavailability of certain laboratory tests. We leveraged EHR data to develop an ML-based tool for predicting adverse outcomes that optimizes clinical utility under a given cost structure. We further gained insights into the decision-making process of the ML models through an explainable AI tool. This cohort study was performed using deidentified EHR data from COVID-19 patients from ProMedica Health System in northwest Ohio and southeastern Michigan. We tested the performance of various ML approaches for predicting either increasing ventilatory support or mortality. We performed post hoc analysis to obtain optimal feature sets under various budget constraints. We demonstrate that it is possible to achieve a significant reduction in cost at the expense of a small reduction in predictive performance. For example, when predicting ventilation, it is possible to achieve a 43% reduction in cost with only a 3% reduction in performance. Similarly, when predicting mortality, it is possible to achieve a 50% reduction in cost with only a 1% reduction in performance. This study presents a quick, accurate, and cost-effective method to evaluate risk of deterioration for patients with SARS-CoV-2 infection at the time of clinical evaluation.

97 MATHEMATICS AND COMPUTING↗

An Integrated Paradigm for the Management of Delivery Risk in Electricity Markets: From Batteries to Insurance and Beyond [Slides]

In wholesale electricity markets today, flexibility from a limited number of distributed energy resources (DERs) is offered daily, and the value of flexibility is not yet recognized for economic hedging of delivery risk. Under a three-year project funded by the ARPA-E PERFORM program, a collaborative team is working towards developing an integrated risk management framework that will leverage flexibility from distributed and bulk resources to cost-effectively and reliably manage delivery risk of intermittent resources. Two concepts are at the core of the proposed integrated risk management framework: (A) flexibility options, which are a novel type of options and enable wholesale electricity market participants to hedge uncertainty by buying flexibility. (B) DER flexibility scores, which provide a way for utilities or aggregators to classify assets in groups with different likelihood of delivering contracted flexibility. This report presentation will focus on the proposed ISO-product "flexibility options," which is complementary to ramp and other products being introduced by ISOs/RTOs to manage net load uncertainties. Participating resources with imbalance risk can buy flexibility options to hedge their production, whereas grid-connected resources that can provide physical flexibility can offer flexibility options. We will present basics of the formulation for a day-ahead ISO market that matches buyers and sellers of this hedge in coordination with existing capabilities to schedule energy and ancillary services, and outline how their settlements mitigate the impact of imbalance risk.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Budget Constrained Machine Learning for Early Prediction of Adverse Outcomes for COVID-19 Patients

Background: Machine learning (ML) based risk stratification models of Electronic Health records (EHR) data may help to optimize treatment of COVID-19 patients, but are often limited by their lack of clinical interpretability and cost of laboratory tests. We develop a ML based tool for predicting adverse outcomes based on EHR data to optimize clinical utility under a given cost structure. This cohort study was performed using deidentified EHR data from COVID-19 patients from ProMedica Healthcare in northwest Ohio and southeastern Michigan. Methods: We tested performance of various ML approaches for predicting either increasing ventilatory support or mortality and the set of model features under a budget constraint was optimized via exhaustive search across all combinations of features. Results: The optimal sets of features for predicting ventilation under any budget constraint included demographics and comorbidities (DCM), basic metabolic panel (BMP), D-dimer, lactate dehydrogenase (LDH), erythrocyte sedimentation rate (ESR), CRP, brain natriuretic peptide (BNP), and procalcitonin and for mortality included DCM, BMP, complete blood count, D-dimer, LDH, CRP, BNP, procalcitonin and ferritin. Conclusions: This study presents a quick, accurate and cost-effective method to evaluate risk of deterioration for patients with SARS-CoV-2 infection at the time of clinical evaluation.

Cadena Pico, JoseE.↗

Quantifying Uncertainty of Deep Reinforcement Learning Based Decision Making for Operations and Maintenance of Nuclear Power Plant

This paper summarizes research that integrates condition monitoring and prognostics with decision making for nuclear power plant operations and maintenance. As part of this research, we have developed an online asset management tool to help reduce life-cycle maintenance and repair costs. Using the latest advancements in condition monitoring, supply chain analytics, and deep reinforcement learning, we have created a predictive maintenance tool that can optimize the maintenance and spare-part management of a repairable nuclear system. To demonstrate these methods, preliminary studies were conducted on a simple, representative maintenance system undergoing a stochastic degradation process that requires repairs or replacement to continue operation. Through Monte Carlo simulations, we were able to reduce maintenance spending by approximately 50% compared to optimized, time-based maintenance strategies. Not only does the decision maker reduce the average life-cycle costs, it also minimizes the chance of high cost scenarios, lowering the variance of the expected cost distributions, and reducing overall financial risk. Furthermore, this work also studies the ability of the decision maker to handle various levels of noise from observation uncertainty. By introducing uncertainty into the decision-making process, we have quantified the robustness and resiliency of the decision maker, as well as identified necessary levels of observability to demonstrate cost effectiveness.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

Quantifying Distribution System Resilience From Utility Data: Large Event Risk and Benefits of Investments

We focus on blackouts in electric distribution systems that have a large cost to customers. To quantify resilience to these events, we show how to calculate risk metrics from the historical outage data routinely collected by utilities' outage management systems. Risk is defined using a customer cost exceedance curve. The exceedance curve has a heavy tail that implies large fluctuations in large blackout costs, and this makes estimating the mean large cost in the usual way impractical. To avoid this problem, we use new resilience metrics describing the large event risk; these metrics are the probability of a large cost event, the annual log cost resilience index, and the average of the logarithm of the cost of large-cost events or the slope magnitude of the tail on a log–log exceedance curve. Resilience can be improved by planned investments to upgrade system components or speed up restoration. The benefits that these investments would have had if they had been made in the past can be quantified by “rerunning history” with the effects of the investment included, and then recalculating the large event risk to find the improvement in resilience. An example using utility data shows a 2% reduction in the probability of a large cost event due to 10% wind hardening and 6%–7% reduction due to 10% faster restoration in two different areas of a distribution utility. This new data-driven approach to quantify resilience and resilience investments is realistic and much easier to apply than complicated approaches based on modeling all the phases of resilience. Moreover, an appeal to improvements to past lived experience may well be persuasive to customers and regulators in making the case for resilience investments.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Designing an Observing System to Study the Surface Biology and Geology (SBG) of the Earth in the 2020s

Abstract Observations of planet Earth from space are a critical resource for science and society. Satellite measurements represent very large investments and United States (US) agencies organize their effort to maximize the return on that investment. The US National Research Council conducts a survey of Earth science and applications to prioritize observations for the coming decade. The most recent survey prioritized a visible to shortwave infrared imaging spectrometer and a multispectral thermal infrared imager to meet a range of needs for studying Surface Biology and Geology (SBG). SBG will be the premier integrated observatory for observing the emerging impacts of climate change by characterizing the diversity of plant life and resolving chemical and physiological signatures. It will address wildfire risk, behavior, and recovery as well as responses to hazards such as oil spills, toxic minerals in minelands, harmful algal blooms, landslides, and other geological hazards. The SBG team analyzed needed instrument characteristics (spatial, temporal, and spectral resolutions, measurement uncertainty) and assessed the cost, mass, power, volume, and risk of different architectures. We present an overview of the Research and Applications trade‐study analysis of algorithms, calibration and validation needs, and societal applications with specifics of substudies detailed in other articles in this special collection. We provide a value framework to converge from hundreds down to three candidate architectures recommended for development. The analysis identified valuable opportunities for international collaboration to increase the revisit frequency, adding value for all partners, leading to a clear measurement strategy for an observing system architecture.

54 ENVIRONMENTAL SCIENCES↗

Hybrid Energy Systems: Opportunities for Coordinated Research

This chapter presents a baseline assessment of DOE’s current portfolio related to hybrid systems that produce electricity as their only output (Track 1), within the context of the key challenges facing these systems. Of particular importance is that this chapter is focused on understanding what makes a hybrid different from two standalone technologies, both in terms of the research being performed and the challenges that ongoing and planned research will seek to overcome. The purpose of summarizing and describing current research areas is to identify opportunities DOE could consider supporting in the near term. DOE encompasses several offices, each of which has unique objectives and is financially constrained. Additionally, the emergence of low-cost hybrid resources presents an array of new opportunities for the electricity sector, including better managing and allocating risk, improving operating performance, reducing system costs, and enhancing reliability and resilience. Realizing these opportunities will require overcoming barriers to the deployment of hybrids through targeted R&D which multiple DOE offices can invest in and benefit from.

42 ENGINEERING↗

Disruptive Photovoltaic Technologies Can Accelerate Global Decarbonization

This contribution explores PV manufacturing capacity expansion trajectories needed to achieve the goal of global decarbonization assuming that investors make financially rational decisions avoiding stranded production assets while still effectively exploiting experience curve benefits in both manufacturing process and product design. Substantial production cost savings and timely decarbonization risk mitigation could accrue by adoption and scaling of high efficiency multijunction device architectures and thin film direct bandgap semiconductor technologies that provide lower manufacturing capital intensity. We demonstrate that there is a $1-2 trillion market opportunity for such disruptive technologies while also providing hundreds of billions of dollars of cost savings to reach total decarbonization.

decarbonization↗

A Guide for Creating a Building-Level Action Plan to Manage Refrigerants in Buildings

The Guide for Creating a Building-Level Action Plan to Manage Refrigerants in Buildings has been developed in response to stakeholder feedback and interest received during the Better Buildings Managing Refrigerants Working Group. This guide includes best practices and a step-by-step guide to create a plan to manage their organization's refrigerants. Stakeholders were interested in guidance for refrigerant management to help reduce costs and protect efficiency of equipment, to mitigate risk related to increased maintenance and operational budgets, and to manage costs of using legacy refrigerants.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Characteristics of a cost-effective blood test for colorectal cancer screening

Background: Blood-based biomarker tests can potentially change the landscape of colorectal cancer (CRC) screening. We characterize the conditions under which blood test screening would be as effective and cost-effective as annual fecal immunochemical testing or decennial colonoscopy. Methods: We used the 3 Cancer Information and Surveillance Modeling Network–Colon models to compare scenarios of no screening, annual fecal immunochemical testing, decennial colonoscopy, and a blood test meeting Centers for Medicare & Medicaid (CMS) coverage criteria (74% CRC sensitivity and 90% specificity). We varied the sensitivity to detect CRC (74%-92%), advanced adenomas (10%-50%), screening interval (1-3 years), and test cost ($25-$500). Primary outcomes included quality-adjusted life-years (QALY) gained from screening and costs for a US average-risk cohort of individuals aged 45 years. Results: Annual fecal immunochemical testing yielded 125-163 QALY gained per 1000 at a cost of 3811-5384 dollars per person, whereas colonoscopy yielded 132-177 QALY gained at a cost of 5375-7031 dollars per person. A blood test with 92% CRC sensitivity and 50% advanced adenoma sensitivity yielded 117-162 QALY gained if used every 3 years and 133-173 QALY gained if used every year but would not be cost-effective if priced above $$125 per test. If used every 3 years, a $500 blood test only meeting CMS coverage criteria yielded 83-116 QALY gained at a cost of $8559-$9413 per person. Conclusion: Blood tests that only meet CMS coverage requirements should not be recommended to patients who would otherwise undergo screening by colonoscopy or fecal immunochemical testing because of lower benefit. Blood tests need higher advanced adenoma sensitivity (above 40%) and lower costs (below $125) to be cost-effective.

60 APPLIED LIFE SCIENCES↗

Commercial, industrial, and institutional discount rate estimation for efficiency standards analysis: Sector-level data 1998–2023

Underlying each of the U.S. Department of Energy’s (DOE’s) federal appliance and equipment energy conservation standards are a set of complex analyses of the projected costs and benefits of regulation. Any new or amended standard must be designed to achieve significant additional energy conservation, provided that it is technologically feasible and economically justified (42 U.S.C. 6295(o)(2)(A)). DOE determines economic justification based on whether the benefits exceed the burdens, considering a variety of factors, including the economic impact of the standard on consumers of the product and the savings in lifetime operating cost compared to any increase in price or maintenance expenses (42 U.S.C. 6295(o)(2)(B)). As part of this determination, DOE conducts a life-cycle cost (LCC) analysis, which models the combined impact of appliance first cost and operating cost changes on a representative commercial building sample to identify the fraction of customers achieving LCC savings or incurring net cost at the considered efficiency levels. Thus, the commercial discount rate value(s) used to calculate the present value of energy cost savings within the LCC model implicitly plays a role in estimating the economic impact of potential standard levels. This report provides an in-depth discussion of the commercial discount rate estimation process relying on the Capital Asset Pricing Model (CAPM) to estimate a business’ cost of equity, and by adding a risk adjustment factor to the risk-free rate associated with long-term U.S. Treasury bonds to estimate their cost of debt. It is an update to previous reports on estimating commercial discount rates from firm-level and sector-level financial data (e.g., Fujita, 2021, 2016). Major topics covered in this report include the following: • Discount rate estimation methods and rationale • Data sources used and data limitations • Discount rate distributions for use in standards analysis • Discount rate estimation methods and distributions specific to the small business subgroup analysis.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Planning Amidst Uncertainty: Identifying Core CCS Infrastructure Robust to Storage Uncertainty

Carbon Capture and Storage (CCS) is a critical technology for reducing anthropogenic CO2 emissions, but its large-scale deployment is complicated by uncertainties in geological storage performance. These uncertainties pose significant financial and operational risks, as underperforming storage sites can lead to costly infrastructure modifications, inefficient pipeline routing, and economic shortfalls. To address this challenge, we propose a novel optimization workflow that is based on mixed-integer linear programming and explicitly integrates probabilistic modeling of storage uncertainty into CCS infrastructure design. This workflow generates multiple infrastructure scenarios by sampling storage capacity distributions, optimally solving each scenario using a mixed-integer linear programming model, and aggregating results into a heatmap to identify core infrastructure components that have a low likelihood of underperforming. A risk index parameter is introduced to balance trade-offs between cost, CO2 processing capacity, and risk of underperformance, allowing stakeholders to quantify and mitigate uncertainty in CCS planning. Applying this workflow to a CCS dataset from the US Department of Energy’s Carbon Utilization and Storage Partnership project reveals key insights into infrastructure resilience. Reducing the risk index from 15% to 0% is observed to lead to an 83.7% reduction in CO2 processing capacity and a 77.1% decrease in project profit, quantifying the trade-off between risk tolerance and project performance. Furthermore, our results highlight critical breakpoints, where small adjustments in the risk index produce disproportionate shifts in infrastructure performance, providing actionable guidance for decision-makers. Unlike prior approaches that aimed to cheaply repair underperforming infrastructure, our workflow constructs robust CCS networks from the ground up, ensuring cost-effective infrastructure under storage uncertainty. These findings demonstrate the practical relevance of incorporating uncertainty-aware optimization into CCS planning, equipping decision-makers with a tool to make informed project planning decisions.

Olson, Daniel↗