1. AIR QUALITY REGULATIONS: Part II

2. C LEAN A IR A CTS A MENDMENTS 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

3. TITLE I-A TTAINMENT N ATIONAL A MBIENT A IR Q UALITY S TANDARDS Draw the boundaries of non attainment areas for carbon monoxide (CO), Ozone (O 3 ), and particulate matter (PM) Ozone (O 3 ) 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

5. A REAS NOT IN COMPLIANCE WITH THE NAAQS AS OF 2009

6. C LASSIFICATION OF N ONATTAINMENT A REAS

7. TITLE II - M OBILE S OURCES 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

8. TITLE III - A IR T OXICS 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

10. TITLE IV - A CID D EPOSITION Phase I 111 Power Plants Cut Back to the 2.5 lbs of SO 2 per million BTU Jan.1, 1995 Phase II Jan.1, 2000 1.2 lbs of SO 2 per million BTU EPA is required to issue rules for NOx 10 million ton cut : SO 2 2 million ton cut : NOx

11. Time Schedule for Acid Rain Program of CAAA

12. TITLE IV - A CID D EPOSITION Trends in SO 2 emissions since 1980 for all Title IV affected sources Trends in NO x emissions under the Acid Rain Program

13. TITLE V - P ERMIT P ROVISIONS 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

14. Time Schedule for Permits Program of CAAA

15. TITLE VI - O ZONE D EPLETING C HEMICALS Phase-out of Ozone-depleting chemicals CFC's, Halons, and Carbon Tetrachloride (2000) Methyl Chloroform (2002) HCFC's (2030) : Production cap by 2015

16. TITLE VII - E NFORCEMENT 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

17. I MPACT 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

18. P ROJECTED A NNUAL C OSTS OF 1990 A MENDMENTS

19. N ATIONAL A MBIENT A IR Q UALITY S TANDARDS FOR A IR T OXICS 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.

20. G UIDELINES FOR A SSESSING H AZARDS

21. A IR POLLUTION CONTROL ALTERNATIVES Emission Trading Emission offsets policy Bubble policy Banking of emission offset credits Netting policy

22. E MISSION T RADING 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”.

23. A CTIVE E MISSION T RADING PROGRAMS : United states: SO 2 trading system (1990 CAA) VOC trading program in Illinois (1997) CO 2 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.

24. P ROS AND C ONS OF E MISSION T RADING

25. E MISSION T RADING W ORLD -W IDE

27. C ARBON T RADING M ARKET

28. E MISSION O FFSETS 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

29. E MISSION O FFSETS IN T HE US SO 2 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 CO 2 emissions standard for new energy utilities. Price cap: $0.57/tCO 2. Utilities can offset emissions using project based mechanisms. In Washington, new plants must demonstrate the use of best available techniques for CO 2 emissions control.

30. E MISSION O FFSETS Massachusetts has also set CO 2 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 CO 2e.

31. W HO IS B UYING ? In percent of volume purchased since Jan.03 – Jan.08 Netherlands 23% Japan 41% CFB 24% Other EU 3% Canada 3% USA 3% Australia & New Zealand 3% Carbon Market

32. W HO IS S ELLING ? OECD 10% Transition Economies 8% Africa 4% Asia 51% Latin America 27% Carbon Market In percent of volume sold from 2003 to May 2004

33. B UBBLE P OLICY 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.

34. B UBBLE P OLICY

35. B ANKING OF E MISSION O FFSET C REDITS 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.

36. N ETTING P OLICY 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.

37. A IR P OLLUTION S TRATEGIES Concept of " best practicable technology ". Requirements Environmental Need Demonstrated Technological and Commercial Feasibility Energy Efficient Acceptance Of Overall Project Economics

38. I NTERNATIONAL S TANDARDS O RGANIZATION (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

39. R EFERENCES 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