1. Sustainability in Practice: Use of Economic Instruments
in Environment Regulations
SCARP Seminar
October 31, 2012
Ray Robb
Regulation & Enforcement Division Manager
MPEP Department
Sandra Bicego
PacificaBlue Consulting 1

2. Air Quality and Climate Change
Diesel soot threatens:
Human Health
The Climate 2 2

3. Metro Vancouver Air Contaminant Cancer Risk

4. Diesel Soot Health Impacts - Lungs
Tiny toxic diesel soot particles penetrate deep into lungs causing:
Asthma attacks
Reduced lung function
Chronic bronchitis
Lung Cancer

5. Diesel Soot Health Impacts - Heart
Acute heart attacks
Chronic heart disease
Soot in lungs causes general inflammatory response
Lungs

6. Diesel Soot & Climate Change
Black Diesel Soot absorbs sun’s heat
in atmosphere
on snow and ice
Total soot heating effect
nearly equal to carbon dioxide
occurs immediately
but does not last long
Technology to reduce diesel soot
available now
cost effective
Can buy the planet time to address Greenhouse Gases

7. Diesel Soot Sources – Human Exposure
Exposure (gms per lung per day) 7 7

8. Engine Tier Emission Standards
Excellent Emission Standards
No Emission Standards
Early Emission Standards
Moderate Emission Standards
>750 hp 8

9. Diesel Soot (Particulate Matter) Emissions
(g per
kW-h)
Engine Tier

10. Soot Emission Equivalents
Tier O
Tier 2/3 =

11. Soot Emission Equivalents
Tier O
Tier 4 =

12. Options for Emission Reductions & Fee Reductions/Refunds
Retrofit
Re-Power
Replace/Retire

13. California Tackles Diesel Emissions+ + + =

14. California Rule Command and Control
Fleet Target = (HPi x LFi x Thp) (HPi x LFi) Fleet Emissions Average = (Hi x HPi x LFi x Ei) (Hi x HPi x LFi) In compliance if: Fleet Emission Average < Fleet Target

15. Fleet Targets soot Joe’s Company Target Joe’s Company Actual
Pete’s Company Target
g/bhp-hr

16. California Diesel Rule
Varies by company size
Varies by sectors
Fleet targets
Based on fleet engine sizes
Change every year or as fleet make-up changes
Compliance
Estimate fleet emissions (spreadsheets)
Numerous exceptions to estimation rules
Exemptions, bonuses, special cases
Complexity creates demand for many
Government staff to explain rules to consultants
Consultants to explain rules to industry

17. California Diesel Rules
Start Finish

18. Metro Vancouver Approach
Who do we serve?
Fair, Efficient & Effective Rules
Minimal impact on model operators
Economic Instruments

19. Engine Tier Emission Standards
Excellent Emission Standards
No Emission Standards
Early Emission Standards
Moderate Emission Standards
Metro Vancouver Approach focuses on Tier 0 and 1 only
>750 hp 19

20. MV Annual Fee Rates 20

21. Fee Exemptions, Refunds & Reductions
Tier 2 or better
Fee Refund
80% of previous 3 years fees if engine is
retired from use in Metro Vancouver region or
upgraded to Tier 2 or better emission standard
Fee Reduction
reduce emissions but don’t achieve Tier 2 21

22. Fees & Refunds
Fees
Reduce emissions
Refund
Tier 0 and 1

23. MV Consultation Approach
Clarify goals
Identify audience
Design consultation process
target every aspect to audience
Develop communication strategy
Plan for consultation event(s)
Implement - Provide information and seek input (various means)
Report feedback
Impact: law, plan, or policy

24. NRD Consultation Process
Focus Groups (paid attendees)
Workshops (all invited)
Working Groups (select representatives of various sectors)
Meetings with various associations, companies
Web-based consultation
Chief MHO comment on public process

25. MV Results Law in force January 2012
1,250 Tier 0 engines registered to date
Many Tier 0 engines “disappearing”
Industry pleased with ease and speed of system
Some challenges (or challenging situations) remain
Other jurisdictions considering similar model

26. Other Examples of Economic Instruments: Liquid Waste
Problem at Primary Plants (Iona & Lion’s Gate)
Limited capacity for BOD (peaks threaten compliance)
Fee structure encourages new BOD sources to discharge to primary plants
Fee structure does not discourage peak discharges

27. Liquid Waste (cont’d) Economic Instrument Solution
Changed fees to reflect
available capacity at local WWTP
peak discharges
Iona and Lion’s Gate get breathing space
Industry puts money where it does most good