1. Pollution Control ECON 373 March 28, 2012

2. Pollution Control Federal Water Pollution Control Policy ▫Types of pollutants ▫Regulations ▫Efficiency effectiveness of the programs Federal Air Pollution control Policy

3. Federal Water Pollution Control Policy Conventional pollutants: ▫Biochemical oxygen-demanding wastes (BOD), total suspended solids, bacteria, oil, grease and PH Nonconventional pollutants: ▫Chemical oxygen demand(COD), total organic carbon, nitrogen and phosphorous Toxic pollutants: ▫65 named in the Clean Water Act chemicals ▫http://water.epa.gov/scitech/methods/cwa/pollutants- background.cfmhttp://water.epa.gov/scitech/methods/cwa/pollutants- background.cfm

4. Types of Waterborne Emission Point sources: industry and domestic wastewater Nonpoint sources: agricultural runoff of pesticides and fertilizers, chemicals and oils flushed off urban streets Continuous emission vs. episodic emission

5. Category of the Pollutants by it’s lasting effects Persistent pollutant Degradable pollutants: ▫BOD: biochemical oxygen demand  The amount of oxygen required to decompose the organic material under specified conditions of temperature and time.  High level of dissolved oxygen are usually associated with high-quality water

6. Dissolved Oxygen Profile in Water after a BOD Load Has Been Introduced Time or distance

7. Federal Water Policy: A Brief History

8. Technology-Based Effluent Standards TBES is an effluent standard set at the level of emissions that a source would produce if it were employing a particular type of abatement technology

9. Efficiency and Cost-Effectiveness Efficient policy: MAC = MD. TBES requires factories in any location to use exactly the same equipment. Cost-effectiveness: is a question whether society is getting the maximum effect in terms of reduced emissions for the money spent. Unlikely given that there are 600 subcatagories of water-polluting industries under EPA definition but there are tens

10. Experience with TBESs How much has the nation’s water quality been improved as a result of the system?

11. Experience with TBESs How bad has the cost-effectiveness problem been? 19 studies found the ratio of TBES to Least-Cost Control system ranges from 1.12-3.13

12. TBESs and Incentives End-of-the pipe regulation

13. TBESs and Enforcement Initial compliance, Yes Continued compliance, ?

14. Federal Air Pollution Control Policy Many potential air pollutants ▫Oxides of carbon ▫Nitrogen ▫Sulfur ▫Volatile organic compounds ▫Suspended particulate matter ▫Photochemical oxidant ▫Radioactivity

15. Federal Air Pollution Control Laws

16. National Ambient Air Quality Standards http://www.epa.gov/air/criteria.html

17. Stationary and Mobile Sources of Criteria Pollutants Emissions (million tons) 19701980199020022006 Carbon monoxide Stationary29.424.922.525.422.6 Mobile174.6160.5131.786.678 Nitrogen oxide Stationary11.512.312.19.67.6 Mobile15.314.813.411.510.6 Volatile organic compounds Stationary16.115.1129.311.1 Mobile18.51612.17.26.2 Sulfure dioxide Stationary30.625.222.214.713.1 Mobile0.60.70.90.70.6 Particulate Matter (PM10) Stationary12.46.327.121.618 Mobile0.60.7 0.50.4 Lead Stationary39.29.53.83.7N/A Mobile181.764.71.20.5N/A

18. Stationary and Mobile Sources of Criteria Pollutants

19. Stationary-Source Control Technology-based effluent standards ▫BACT: Best available control technology ▫LAER: Lowest achievement emission rates ▫RACT: reasonably available control technology Cost-Effectiveness of TBES ▫11 studies shows the Ratio of CAC Costs to Least Cost ranges from 1.07-22.00

20. New Directions in Stationary-Source Control Cap-and-trade (CAP) ▫Regional Clean Air Incentive Market (RECLAIM) in 1993 ▫1990 Acid Rain program under CAAA ▫NOx emission trading program in 13 NE states in 1999

21. The CAP Program of the 1990 CAA Two phases ▫Phase I:1995-2000, involving 110 electric power plants ▫Phase II: begins in 2000 includes 1000 power plants Time profile of discharge permits ▫Phase I: 2.5 pounds of SO2 per million BTUs multiply by the average annual fuel consumed from 1985-1987 ▫Phase II: 1.2 pounds …

22. Has ARP program worked?

23. SO2 by State

24. SO2 Permit Prices

25. ETS CO2 Permit Price

26. Mobile Source Air Pollutant Control

27. CAFE Standards CAFE standards: Corporate Average Fuel Economy Program Goal: Aim to require automakers to enhance fuel efficiency

28. CAFE Standards

29. Cafe Standards 1) Separate MPG standards for all cars and light trucks 2) Key here is average: not a standard for all cars for fleet average 3) Standards have increased: 18 mpg (1978) to 27.5 mpg (1985). 29 mpg in 2010 proposed to 56 mpg by 2025 Separate Cafe calculation for domestic and foreign fleets

30. CAFE Standards