AIR QUALITY REGULATIONS: Part II

CLEAN AIR ACTS AMENDMENTS OF 1990

The Clean Air Act Amendments of 1990 are divided into 11 sections: TITLE I - Attainment of National Ambient Air Quality Standards TITLE II - Mobile Sources TITLE III - Air Toxics TITLE IV - Acid Deposition TITLE V - Permit Provisions TITLE VI - Ozone Depleting Chemicals TITLE VII - Enforcement TITLE VIII - Miscellaneous TITLE IX - Clean Air Research TITLE X - Disadvantaged Business Concerns TITLE XI - 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 (O3), and particulate matter (PM) Ozone (O3)

Severe Serious Moderate Marginal Extreme for LA

Carbon monoxide (CO), and Particulate Matter (PM -10) 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) (8hr 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 SO2 per million BTU Jan.1, 1995

Phase II Jan.1, 2000 1.2 lbs of SO2 per million BTU

EPA is required to issue rules for NOx 10 million ton cut : SO2

2 million ton cut : NOx

Time Schedule for Acid Rain Program of CAAA

TITLE IV - ACID DEPOSITION

Trends in SO2 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). Risk of 10

-6 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:

SO2 trading system (1990 CAA) VOC trading program in Illinois (1997) CO2 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 and supply conditions.

PROS AND CONS OF EMISSION TRADING

EMISSION TRADING WORLD-WIDE

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 SO2 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 CO2 emissions standard for new energy utilities. Price cap: $0.57/tCO2. Utilities can offset emissions using project based mechanisms.

In Washington, new plants must demonstrate the use of best available techniques for CO2 emissions control.

EMISSION OFFSETS Massachusetts has also set CO2 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 CO2e.

WHO IS BUYING?In percent of volume purchased since Jan.03 – Jan.08

Netherlands23%

Japan41%

CFB24%

Other EU3%

Canada3%

USA3%

Australia & New Zealand

3%

Carbon Market

WHO IS SELLING?

OECD

10% Transition

Economies

8%

Africa

4%

Asia

51%

Latin America27%

Carbon Market

In percent of volume sold from 2003 to May 2004

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