Impact of BODs on Fish Types of organisms Dissolved oxygen (ppm) Biological oxygen demand Normal clean water organisms (Trout, perch, bass, mayfly, stonefly) 8 ppm Trash fish (carp, gar, leeches) Fish absent, fungi, sludge worms, bacteria (anaerobic) Trash fish (carp, gar, leeches) Normal clean water organisms (Trout, perch, bass, mayfly, stonefly) 8 ppm Clean Zone Decomposition Zone Septic Zone Recovery Zone Clean Zone

NPEDES Rulemaking Process Regulatory Output Abatement Costs Compliance Environmental Impact Perverse Incentives

Permitting “Permits are the legally binding terms that a control authority imposes on a pollution sources as a conditions for building or operating the sources. Permits are designed to reconcile what the source emits with what standards allow. Permits are the basis for compliance, the key to pollution control, the nexus between the control authority and the pollution sources.” – Davies, Reforming Permitting

Permitting Process Expensive Complex, Long Many agencies, Separate permit for each media –CAA, Title V –CWA –RCRA Dynamic nature of process

Regulatory Impact Permits = Bargaining Consent of regulated  Success New facilities versus Renewal

Compliance Bethlehem Steel, MD –48 th biggest toxic metal polluter –CWA permit expires 1985 Fragmentation- Frigidaire

Power! Administrative Discretion = Power! –Manchester Sewer Overflow –Permit requirements are in “policy guidance” to states –No one sues, it is legal the initial

A Better Way?

“Cheaper, Faster, Better” “Goals of the program are to achieve a cleaner environment at the lowest cost.” –President Clinton "The old way of doing business was that government dictates every move a business must take to protect the environment. The new system, envisioned by Project XL, is to work cooperatively and focus on the results: a cleaner environment; a faster, less costly system; with more input from the local community." –Intel CEO, Gordon Moore

Project XL Flexibility for Superior Environmental Performance (SEP) Site-specific plans Stakeholder negotiations Voluntary

Intel Why go XL? Deliver SEP? Stakeholders?

SEP Intel trades –50% less air pollutants –Conserve water –Reduce Chemical waste 60% –Pretty Campus EPA –Modest flexibility Sound good?

Weyerhaeuser, GA 500 jobs, $75 million 320,000 mton of bleached softwood kraft market fluff pulp

Weyerhauser SEP –60% air emissions –Renewable forest mgmt practices 300k acres –Stricter h2o effluents limits Innovation –Closed loop –No bleach dumping –Reduce hazardous waste 90%

Merck Stonewall Plant Trading Ozone for Smog

Substantive Issues What is “superior environmental performance” –What’s the baseline, Kenneth? –“Clear reduction in risk” ? –Whose environmental priorities– habitat, green space, parks –Okay to trade for social/political benefits

Procedural Issues Role of “outside stakeholders” Power of stakeholders, veto? –Absolute conesnes Expertise Time Consuming Legal? –No protection from citizen suits

Big ?s Goals of Reinvention? –Balance between environmental quality and reducing compliance costs –When to trade-off –Who makes trade off? What if no-one wanted to reinvent the process?