1. Command and Control Regulation in Action Regulating Industrial Water Pollution in the US

2. Clean Water Act of 1972 Sets national goals as zero-discharge of pollution by 1985 Sets national goals as zero-discharge of pollution by 1985 2 Main Policy Tools 2 Main Policy Tools Construction grants program $$ Construction grants program $$ Technology based regulations for discharge of water pollution from point sources Technology based regulations for discharge of water pollution from point sources

3. National Pollutant Discharge Elimination System EPA- establishes Federal Effluent Guidelines EPA- establishes Federal Effluent Guidelines States– write,monitoring, and enforce NPEDS permits States– write,monitoring, and enforce NPEDS permits Main Targets Main Targets Biochemical oxygen demand (BOD) Biochemical oxygen demand (BOD) total suspended solids (TSS) total suspended solids (TSS) 15 pollutants of concerns, (metals i.e. arsenic and mercury) 15 pollutants of concerns, (metals i.e. arsenic and mercury)

5. POTW publicly owned treatment works

6. POTW

7. POTW Tech Regulation Tech Regulation Primary treatment (skimming, screening, settling) 65% Primary treatment (skimming, screening, settling) 65% Secondary treatment - 80-90% Secondary treatment - 80-90% Criteria on uses for sludge Criteria on uses for sludge ensuring effective operation and maintenance ensuring effective operation and maintenance

8. Direct Discharges from Industrial Plants

9. EPA guidelines for 30 designated industries EPA guidelines for 30 designated industries best practicable technology by 1977 best practicable technology by 1977 Best Available Tech by 1983 Best Available Tech by 1983 New Source Performance Standards New Source Performance Standards

10. Complexity Dairy Standards Dairy Standards Different standards for subcategories Different standards for subcategories Acceptable pollutant discharge rates vary Acceptable pollutant discharge rates vary BOD 30 day standard for large facilities Butter.55kg per 1000 kg of BOD input; Cottage cheese 2.6, Ice bream 1.84, Condensed Milk 1.38, Dry Milk.65 BOD 30 day standard for large facilities Butter.55kg per 1000 kg of BOD input; Cottage cheese 2.6, Ice bream 1.84, Condensed Milk 1.38, Dry Milk.65 Separate limits for one day maximum discharge, 30 day average, for small and large facilities. Separate limits for one day maximum discharge, 30 day average, for small and large facilities.

11. Indirect discharges from industrial plant Industrial plants to POTW Industrial plants to POTW Pretreatment guidelines Pretreatment guidelines

12. Rulemaking Process Information Requirements Information Requirements Writing of direct discharge standards Writing of direct discharge standards How to operationalize best, practicable, economically achievable How to operationalize best, practicable, economically achievable Need information on production techniques, location, waste products, and waste treatment tech Need information on production techniques, location, waste products, and waste treatment tech heterogeneity --360 industrial subcategories among first 30 industries requiring effluent guidelines heterogeneity --360 industrial subcategories among first 30 industries requiring effluent guidelines separate BPT, BAT, NSPS< and pretreatment regulations separate BPT, BAT, NSPS< and pretreatment regulations

13. Rulemaking Process Role of consulting firms Role of consulting firms Proposed standards, industry comment Proposed standards, industry comment 250 lawsuits 250 lawsuits

14. Regulatory Output BPT - 1 year BPT - 1 year BAT standards – 1/3 rd done by 1995 BAT standards – 1/3 rd done by 1995 Zero Discharge – still waiting Zero Discharge – still waiting

15. Abatement Costs Big variation in incremental costs Big variation in incremental costs Estimate of costs > than actual Estimate of costs > than actual

16. Compliance Assumption- 97% reduction in discharge of priority pollutants Assumption- 97% reduction in discharge of priority pollutants Compliance – mixed Compliance – mixed 6% of major direct dischargers -significant noncompliance 6% of major direct dischargers -significant noncompliance % of US served by POTWs increases from 42% to 74% % of US served by POTWs increases from 42% to 74% POTW pretreatment- 54% of significant indutstrial users were in significant noncompliance (1992) POTW pretreatment- 54% of significant indutstrial users were in significant noncompliance (1992)

17. But is the water cleaner? Some big successes- Potomac, Delaware Some big successes- Potomac, Delaware Lack of data, Lack of data,

18. Perverse Incentives Expansion of POTW Construction Grants Program Expansion of POTW Construction Grants Program shift from direct discharge towards indirect discharge shift from direct discharge towards indirect discharge