AIR QUALITY REGULATIONS PART II CLEAN AIR ACTS

AIR QUALITY REGULATIONS: PART II

CLEAN AIR ACTS AMENDMENTS OF 1990 The Clean Air Act Amendments of 1990 are divided into 11 sections: TITLE III TITLE IV TITLE VIII TITLE IX TITLE XI - Attainment of National Ambient Air Quality Standards - Mobile Sources - Air Toxics - Acid Deposition - Permit Provisions - Ozone Depleting Chemicals - Enforcement - Miscellaneous - Clean Air Research - Disadvantaged Business Concerns - Clean Air Employment Transition Assistance

TITLE I-ATTAINMENT NATIONAL AMBIENT AIR QUALITY STANDARDS Draw the boundaries of non attainment areas for carbon monoxide (CO), Ozone (O 3), and particulate matter (PM) Ozone (O 3) Carbon monoxide (CO), and Particulate Matter (PM -10) Severe Serious Moderate Marginal Extreme for LA Serious Moderate Definition of a “Major Source” Extreme Areas : 10 tons of VOC and NOx per year Severe Areas: 25 tons. Serious : 50 tons. Moderate and Marginal : 100 tons. 19

AREAS NOT IN COMPLIANCE WITH THE NAAQS AS OF 2009

CLASSIFICATION OF NONATTAINMENT AREAS

TITLE II - MOBILE SOURCES Tier I NOx : 0. 6 grams / mile (1994) HC : 0. 4 grams / mile Auto : 100, 000 or 10 years Light Duty Trucks : 75, 000 or 7 years CO : 10 grams / mile Tier II NOx : 0. 200 grams / mile (2003) HC : 0. 125 grams / mile CO : 9. 000 ppm (1996) (8 hr concetration) 1995 : Use of formulated gasoline in 9 cities

TITLE III - AIR TOXICS 189 Air Toxics List of Source Categories 10 tons annual (Single Toxic) 25 tons annual (Combination) Maximum Available Control Technology Standard Study Mercury Emissions from Utilities Study Toxic Deposition in the Great Lakes Requirement for Operating Permit

TITLE IV - ACID DEPOSITION Phase I 111 Power Plants Cut Back to the 2. 5 lbs of SO 2 per million BTU Jan. 1, 1995 Phase II Jan. 1, 2000 1. 2 lbs of SO 2 per million BTU EPA is required to issue rules for NOx 10 million ton cut : SO 2 2 million ton cut : NOx

Time Schedule for Acid Rain Program of CAAA

TITLE IV - ACID DEPOSITION Trends in SO 2 emissions since 1980 for all Title IV affected sources Trends in NOx emissions under the Acid Rain Program

TITLE V - PERMIT PROVISIONS 12 months to issue final rule 3 years to implement permit program for states EPA can veto a state's permit Major Source : 5 year permit

Time Schedule for Permits Program of CAAA

TITLE VI - OZONE DEPLETING CHEMICALS Phase-out of Ozone-depleting chemicals CFC's, Halons, and Carbon Tetrachloride (2000) Methyl Chloroform (2002) HCFC's (2030) : Production cap by 2015

TITLE VII - ENFORCEMENT Civil and criminal liabilities 15 years in prison for knowingly endangering public On-the-spot citations of upto $5, 000 Penalty orders upto $200, 000 Issue compliance orders Issue compliance schedules Issue administrative subpoenas to gather compliance data Private citizens and groups to seek penalties against violators

IMPACT OF CAAA OF 1990 400 new regulations Small businesses are hit hard Coal miners in Midwest Issue of new permits Emission fee Pollution control for 189 Air toxics $26 Billion / Year by 2005 Emission allowance and training program

PROJECTED ANNUAL COSTS OF 1990 AMENDMENTS

NATIONAL AMBIENT AIR QUALITY STANDARDS FOR AIR TOXICS None developed by EPA. Guideline for state. Use of TLV- TWA (ACGIH). Use of PEL (OSHA). Use of IDLH (NIOSH). -6 Risk of 10 for carcinogenic pollutants. etc.

GUIDELINES FOR ASSESSING HAZARDS

AIR POLLUTION CONTROL ALTERNATIVES Emission Trading Emission offsets policy Bubble policy Banking of emission offset credits Netting policy

EMISSION TRADING Definition: An administrative approach to control pollution by providing economic incentives for achieving reductions in the emission of pollutants. A governmental body sets a limit or cap on the amount of pollutant that can be emitted. Companies that need to increase their emission allowance (credit) must buy credits from those who emit less. Transfer of allowance is referred as “TRADE”.

ACTIVE EMISSION TRADING PROGRAMS: United states: SO 2 trading system (1990 CAA) VOC trading program in Illinois (1997) CO 2 cap-and-trade in New York (2003) European Union Emission Trading Scheme (EU ETS): Greenhouse gases (established in 2005) New South Wales (Australia) Greenhouse gas abatement scheme (established in 2003) Carbon trading scheme (effective 2011) New Zealand Emissions Trading Scheme: Greenhouse gases (established in 2008) Note: The price of credits would be determined by global market demand supply conditions.

PROS AND CONS OF EMISSION TRADING

EMISSION TRADING WORLDWIDE

CARBON TRADING MARKET

EMISSION OFFSETS Offset policy is for new sources The new source needs to satisfy lowest achievable emission rate All the existing sources, controlled by the same owner, need to be in compliance with emission standards Emission reduction for existing sources can benefit the new source

EMISSION OFFSETS IN THE US SO 2 emissions were reduced by 43% from 1980 levels by 2007. New York state’s Regional Greenhouse Gas initiative program aims to reduce the carbon "budget" of each state's electricity generation sector to 10% below their 2009 allowances by 2018. Oregon has set CO 2 emissions standard for new energy utilities. Price cap: $0. 57/t. CO 2. Utilities can offset emissions using project based mechanisms. In Washington, new plants must demonstrate the use of best available techniques for CO 2 emissions control.

EMISSION OFFSETS Massachusetts has also set CO 2 emissions cap for energy utilities. Utilities can offset excess emissions using project -based mechanisms. In Australia, since 2007, it is expected to annually reduce GHG emissions by more than 1. 8 metric tones of CO 2 e.

WHO IS BUYING? In percent of volume purchased since Jan. 03 – Jan. 08 Carbon Market Australia & New USACanada Zealand 3% 3% 3% Other EU 3% CFB 24% Netherlands 23% Japan 41%

WHO IS SELLING? In percent of volume sold from 2003 to May 2004 Carbon Market OECD 10% Latin America 27% Transition Economies 8% Africa 4% Asia 51%

BUBBLE POLICY Consider entire factory as a source by placing an imaginary “bubble” around the factory. Set a standard for this entire source. Industry can adjust the emissions of each individual stack. Some can emit more than others as long as the entire source can comply with the bubble policy.

BUBBLE POLICY

BANKING OF EMISSION OFFSET CREDITS Banking emissions is a way of reserving emission reduction credit. Incentive to shutdown, curtail operations, or install additional emission controls. If an existing source is retired and new source is not installed immediately, it can “bank” the reduced emissions caused by source removal. Credits for future use.

NETTING POLICY Netting allows plants that are being modified or extended to be exempt from New Source Performance Standards, as long as the plant wide emission increase is not significant.

AIR POLLUTION STRATEGIES Concept of " best practicable technology ". Requirements Environmental Need Demonstrated Technological and Commercial Feasibility Energy Efficient Acceptance Of Overall Project Economics

INTERNATIONAL STANDARDS ORGANIZATION (ISO)14000 Voluntary environmental standard designed to cover: Environmental management systems Environmental auditing Environmental performance evaluation Environmental labeling Life-cycle assessment Environmental aspects in product standards

REFERENCES D. Y. C. Leung, Daniel Yung, Amanda Ng, M. K. H. Leung, and Alan Chan, “An overview of emissions trading and its prospects in Hong Kong”, 2008. K. Wark, C. F. Warner, and W. T. Davis, “Air pollution its origin and control”, Addison-Wesley, California, 1998