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Outline of Clean Air Act 101. Brief History of the Clean Air Act Clean Air Act Amendments of 1990 Title I – Clean Air Standards, Mike Jay, Jon Knodel Title II – Mobile Sources, Mike Jay, APDB Title III – Air Toxics, Richard Tripp Title IV – Acid Rain, Jon Knodel

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Outline of Clean Air Act 101

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    1. Outline of Clean Air Act 101 • Brief History of the Clean Air Act • Clean Air Act Amendments of 1990 • Title I – Clean Air Standards, Mike Jay, Jon Knodel • Title II – Mobile Sources, Mike Jay, APDB • Title III – Air Toxics, Richard Tripp • Title IV – Acid Rain, Jon Knodel • Title V – Operating Permits, Jon Knodel • Title VI – Ozone Depleting Substances, Jon Knodel • Title VII – Enforcement Provisions, Jon Knodel

    2. Where does EPA get the authority to regulate air quality? • Basic Principles • Federal Government regulates interstate matters and states regulate within respective state boundaries • Air pollution travels beyond state boundaries and is subject to federal regulation • EPA is an administrative agency given authority to pass rules by congress

    3. Brief History of the Clean Air Act • Statutory Evolution • Air Pollution Control Act (1955) – funding and technical assistance to state and local government • Clean Air Act of 1963 • Nonmandatory air quality criteria established by feds • Feds authorized to intervene when a state could not handle a particular problem by itself • Air Quality Act of 1965 • Duty imposed on feds to issue air quality criteria • States required to establish AQ standards and implement and enforce implementing regulations • Feds could enforce (in the case of interstate AQ problems) if the state did not enforce • Feds could also promulgate standards if state did not • Air Quality Act of 1967 – Retained prior process and increased federal enforcement authority

    4. History (cont.) • Clean Air Act Amendments of 1970 • Substantial expansion of control of motor vehicle pollution – national emissions standards • Authorized EPA to set NAAQS • States required to submit plans (SIPs) to implement NAAQS • EPA authorized to set standards for new sources (NSPS and for HAP sources (NESHAP) • EPA authorized to directly enforce requirements • Clean Air Act Amendments of 1977 • Codified EPA permitting programs • Established new deadlines and more detailed requirements for SIPs to attain NAAQS • Provided sanctions for state planning failures

    5. History (cont.) • Clean Air Act Amendments of 1990 • Established several new air pollution programs • Technology-based standards for HAPs • Acid deposition program • Protections for ozone layer • International and interstate transport • Operating Permit program • Regulation of consumer products • New processes and more specific requirements for areas not attaining the NAAQS • Substantial expansion of existing programs, for example: • Motor vehicle and fuel controls • Motor vehicle inspection and maintenance • Enforcement authorities

    6. Title I – NAAQS Program • EPA sets National Ambient Air Quality Standards for six common pollutants: • particulate matter (PM10-PM2.5) • ozone (O3) • sulfur dioxide (SO2) • carbon monoxide (CO) • lead (Pb) • nitrogen dioxide (NO2) • Primary standards protect human health and secondary protect environment • Review NAAQS every 5 years • States develop state implementation plans (SIPs) to meet NAAQS • EPA issues implementation rules and sets minimum requirements for state plans States submit SIPs and NAAQS attainment demonstrations for EPA approval • EPA provides grant dollars to states to develop plans • Federal Implementation Plan (FIP) • EPA can issue FIP in absence of an approvable SIP

    7. Nonattainment areas for 8-hour ozone pollution only Nonattainment areas for fine particle pollution only . Nonattainment areas for both 8-hour ozone and fine particle pollution What is the extent of the nonattainment areas for PM2.5 and ozone in the CAIR region?

    8. Title I (cont.) How are areas with unsafe air identified and cleaned up? • Ambient air monitoring provisions specify methods to be used to determine air quality • EPA and state governors identify nonattainment areas and EPA classifies the severity of the air quality problem • Clean-up requirements and deadlines are based on the classification. Here are some examples: • Mandatory VOC and NOx reductions • Emissions inventory requirements • Attainment modeling requirements • Contingency measures • Reasonable further progress • Transportation control measures • Increasing offset ratios • EPA helps states meet NAAQS by issuing federal regulations for major categories of pollution sources (e.g., mobile source rules, Clean Air Interstate Rule) • Regional haze regulated with approach similar to that for attaining NAAQS

    9. Title I (cont.) Federal Technology StandardsNew Source Performance Standards (NSPS) • Unlike SIPs, the NSPS generally apply only to emission units that are new, modified, or reconstructed after a certain date • These standards reflect the “best system of emission reduction” taking into consideration economics and other environmental concerns • Standards are technology driven, but do not mandate specific technology • Affected units are free to comply through whatever means are most appropriate for their circumstance • Standards are to be updated every 8 years to reflect latest technology

    10. Title I (cont.) New Source Performance StandardsWho is covered? • The NSPS rules, found at 40 CFR Part 60, establish detailed emissions, testing, recordkeeping, and reporting standards for over 78 source types, including boilers, incinerators, smelters, tanks, chemical plants, refineries, surface coating, printing, aggregate and mineral processing plants, among others… • These standards are described in nearly 1,400 pages of regulatory text in the Code of Federal Regulations

    11. Title I (cont.) New Source Performance StandardsWho carries out the program? • State and local agencies carry out the bulk of the program on EPA’s behalf • EPA and states share co-implementation and co-enforcement authority in the event an agency is unable to resolve a particular problem • Implementation responsibilities include compliance assistance, applicability determinations, overseeing stack tests, conducting inspections, reviewing excess emission reports and taking any necessary enforcement • States generally update their rules annually to keep them in synch with the federal requirements

    12. Title I (cont.) P2 opportunities in the NSPS program • Many of the standards, in particular for surface coating and printing, reflect P2 principles for source reduction • When establishing standards, EPA considers • technological processes that are inherently low-polluting or nonpolluting, and • technological systems for continuous reduction of the pollution generated by a source before such pollution is emitted into the ambient air, including pre-combustion cleaning or treatment of fuels

    13. Title I (cont.) For more information on the NSPS program… • EPA Region 7’s NSPS website • http://www.epa.gov/region07/programs/artd/air/nsps/nsps.htm

    14. Federal Technology Standards…National Emission Standards for Hazardous Air Pollutants (NESHAPs) • Similar to the NSPS, except that the Part 61 standards set based on health-based risks • Because of complexity of risk analysis approach, EPA was able to finalize only 22 standards between 1971 and 1990 • Under 1990 Clean Air Act Amendments, Congress re-directed the agency to set standards based on technology first and “residual risk” later • The Title III MACT program takes over where Part 61 left off • For more details, listen in on tomorrow mornings session

    15. Title I (cont.) Pre-Construction Permit Program • Commonly referred to as “New Source Review” or NSR Program • Can be a very complex, time consuming process which requires advance planning • Recently has received much attention nationally, from the Courts to the White House • Presents many opportunities for P2

    16. Title I (cont.) What is the concept behind NSR? • Ensures new construction does not cause an air quality problem before company puts “equity in the ground” • Promotes use of technology and other advanced pollution reduction solutions (e.g. low solvent coatings) • Provides a balance between environmental protection and the need for economic growth • Adjusts the stringency of review and associated pollution controls depending on size and location of plant

    17. Title I (cont.) NSR Program Elements • Minor source program… • Makes up about 85% of the permitting activity • In Kansas, accounts for 2% of new emissions • Provides mechanism to avoid “major” source status • PSD (Prevention of Significant Deterioration) program… • Reserved for new major construction projects and “significant” modifications • Usually requires significant modeling, technology review and pre- and post-construction ambient monitoring • Part D Nonattainment program… • Reserved for areas not meeting the NAAQS

    18. Title I (cont.) Elements common to all NSR permits • A source must have a final permit in hand prior to breaking ground • The permitting authority may not issue a permit to a source that is shown or expected to exceed the NAAQS or increment • The permits live on even after construction is completed • The program is designed to seek full participation by the public

    19. Title I (cont.) Who runs the NSR program? • State and local agencies in Region 7 • The region provides technical assistance and limited oversight to help ensure some level of national consistency. • EPA also maintains a technology “clearinghouse” and a number of other databases to facilitate review and permitting of future facilities.

    20. Title I (cont.) NSR in the news… • NSR is at the heart of several nation-wide enforcement initiatives with the power and refining sector, among others • Did Congress expect “grandfathered” sources to live on in perpetuity without state-of-the-art controls? Or to control only when constructing new facilities? • Now have conflicting opinions in at least three court jurisdictions • Several elements of NSR “reform” are also being debated in the courts

    21. Title I (cont.) P2 opportunities in the NSR program • Voluntary “synthetic minor” permits provide incentive to source to make raw material substitution (e.g. non-VOC coatings, low sulfur fuels), minimize waste streams, and improve efficiency • “Permits by rule” may offer similar P2 benefits and allow the source to begin construction soon after filing an application • National NSR settlements seek P2 opportunities and other pollution reductions through supplemental environmental projects • PALs (or plant-wide applicability limits or “caps”) allow companies to make plant improvements without a comprehensive permit review. This has benefited companies like 3M, Intel, Imation, Daimler Chrysler, Saturn and others • Many states are considering innovations to administratively streamline their programs... this may provide P2 opportunities

    22. Title I (cont.) For more information on NSR… • 1990 Draft NSR Workshop Manual • http://www.epa.gov/Region7/programs/artd/air/nsr/nsrmemos/1990wman.pdf • Region 7 NSR Website • http://www.epa.gov/region07/programs/artd/air/nsr/nsr.htm

    23. Title II – Mobile Source Program • Motor Vehicle Emissions Standards • Tier Levels • HAP research • Fuels and Fuel Additives • Reformulated gasoline • Oxygenated fuels • Aircraft Emissions Standards • Fuel venting and exhaust limits • Clean Fuel Vehicles • Fleet owners in NA areas will acquire clean fuel vehicles

    24. Title II (cont.)– Mobile Source Program • At present the United States: • Motor vehicles are responsible for up to half of the smog-forming VOCs and nitrogen oxides (NOx). • Motor vehicles release more than 50 percent of the hazardous air pollutants. • Motor vehicles release up to 90 percent of the carbon monoxide found in urban air.

    25. Title II (cont.) Vehicle Pollution: Progress • Passenger vehicles: 77-95% cleaner by 2004 • Trucks & buses: 90-95% cleaner by 2007 • First standards for off-road sources • Clean-burning reformulated gasoline and low sulfur diesel fuel

    26. Title II (cont.)What went wrong? • More people are driving more cars more miles on more trips. In 1970, Americans traveled 1 trillion miles in motor vehicles, and we are now driving 4 trillion miles each year • Many people live far from where they work; in many areas, buses, subways, and commuter trains are not available. Also, most people still drive to work alone, even when van pools, HOV (high-occupancy vehicle) lanes and other alternatives to one-person-per-car commuting are available. • Buses and trucks, which produce a lot of pollution, haven't had to clean up their engines and exhaust systems as much as cars. • Auto fuel has become more polluting. As lead was being phased out, gasoline refiners changed gasoline formulas to make up for octane loss, and the changes made gasoline more likely to release smog-forming VOC vapors into the air.

    27. Title II (cont.) New Passenger Car NOx Standards

    28. Title II (cont.) Heavy Duty StandardsNOx (red) and PM (gray)

    29. Title II (cont.) Vehicle Pollution: Challenges • Implementation of highway and non-road rules • Further reduce pollution from existing highway fleet • Further reduce pollution from non-road sources, including locomotives and marine • Increase use of cleaner fuels and vehicles • Transportation Conformity • Managing State and local programs • Vehicle inspection and maintenance (I/M); on-board diagnostics (OBD) • Fuels • Improving data and models

    30. Title II (cont.) P2 opportunities with mobile sources • National Clean Diesel Campaign • Diesel retrofits • Idling reduction • Best Workplaces for Commuters

    31. Title II (cont.) EPA Clean Diesel Projects

    32. Title II (cont.) Diesel Retrofit Program Highlights • About 220 cleaner diesel projects nationwide • 44 states (and DC) have projects • Over 500 partners are participating • Clean School Bus USA – Flagship Program • Over 2 million children ride to school in cleaner buses each day • 150 school districts • About 20,000 buses

    33. Title IV Acid Rain Program • In 1990, Congress determined that deposition of SO2 and NOx from power plants was causing excessive harm to structures and water bodies in the Northeast • In a radical departure from the traditional command and control approach, EPA established a market based “cap and trade” program

    34. Acid Rain Program Goals • Reduce SO2 emissions by approximately 10 million tons per year • Reduce NOx emissions by approximately 2 million tons per year • Reductions not intended to completely solve the deposition problem, but help reverse the trend in an economically equitable fashion • Reductions achieved in two phases; the “large dirties” first and everyone else later

    35. Acid Rain “Cap and Trade” Concept • Under a “cap and trade” each utility is given a fixed allotment, or allowance, to emit SO2 • Each allowance corresponds to one ton of emissions • Utilities may install controls, switch fuels, or take other pollution prevention measures to stay under their allotment… • Or, utilities may buy, sell, barter, or trade with other allowance holders to cover their allowance requirements • Market activity has been reasonably robust; SO2 auction this year saw prices at $260-350 for 7-year advance and $690-750 for spot market allowances • In 2003, over 16 million allowance trades, both present and future, were transacted

    36. Other Cap & Trade Features • Requires extensive emissions monitoring • Program is largely self enforcing; penalties for non-compliance far outweigh compliance costs • Implemented federally, but with “field” assistance from states

    37. Acid Rain Program… A success story • Cap & Trade model has been largely successful • Since 1995, SO2 emissions in Region 7 have been reduced by 865,000 – 1,000,000 tons (2 billion pounds) each year from a 1980 baseline; despite a 24% increase in energy demand since the start of the program • NOx emissions are just now starting to come down, mostly in response to the NOx SIP Call and other anticipated programs like CAIR and Clear Skies • The Acid Rain program will likely serve as a model for future cap & trade programs like CAIR

    38. P2 opportunities in the acid rain program • The cap & trade program, in contrast to command and control, offers broad operational flexibility for utilities to switch to less polluting alternatives • Most, if not all, coal-fired utilities in Region 7 switched to lower polluting Powder River Basin coal • As future cuts become more severe (e.g. CAIR), additional P2 opportunities become more limited as probability for add-on controls rises

    39. For more information on the acid rain program… • EPA Clean Air Markets Division, Acid Rain website • http://www.epa.gov/airmarkets/arp/index.html

    40. Title VOperating Permits • For the first time in 1990, Congress authorized the Title V operating permits program • Modeled after the NPDES (water) operating permit program • Built on many existing state and local agency permitting programs

    41. What is the concept behind operating permits? • Intended to centralize all regulatory requirements into one, simple-to-read document • Not intended to create new requirements, but permit can include “voluntary” measures • Designed to enhance compliance assurance at sources through expanded monitoring and periodic compliance certifications • Provides the basis for states to collect fees sufficient to cover program costs. • Enhances public knowledge about activities taking place in its community

    42. Who runs the operating permit program? • State and local agencies • The region provides technical assistance and limited oversight to help ensure some level of national consistency • The region, unlike in the NSR program, may exercise its option to formally object to a permit • In certain cases, the EPA Administrator may order a state to fix defective permit components

    43. Operating Permit Program Elements • Minor source program (aka Class II, Class B, Intermediate permits) • Provides mechanism to avoid “major” source operating permit status • Allows smaller sources that emit hazardous air pollutants (HAPs) to accept “voluntary” limits to avoid MACT (maximum achievable control technology) standards • Title V or Part 70 program (aka Class I, Class A permits)

    44. Elements common to all operating permits • The permit should clearly specify, or reference, each source obligation • Where existing monitoring and recordkeeping is insufficient to document compliance, the permit may “gap fill” • Permits are renewed at five year intervals to include the most recent requirements • The operating permit puts the responsibility of certifying compliance squarely on the “responsible official” • The program is designed to seek full participation by the public

    45. P2 opportunities in the operating permit program • Voluntary “synthetic minor” permits may provide incentive to source to make raw material substitution (e.g. non-VOC coatings, low sulfur fuels), minimize waste streams, and improve efficiency • Permits can offer operational flexibility for a source to switch to less polluting alternatives (to the extent they can define such alternative during initial permit issuance or renewal) without having to make permit revisions

    46. For more information on operating permits… • EPA’s Operating Permits Website • http://www.epa.gov/ttn/oarpg/t5main.html • Region 7 Operating Permits Website • http://www.epa.gov/region07/programs/artd/air/title5/titlevhp.htm

    47. Title VIStratospheric Ozone Protection • Ozone at higher elevations in the atmosphere helps filter harmful radiation from reaching the surface of the earth • For many years, scientists have documented the effects of chlorofluorocarbons (CFCs) and other ozone depleting substances (ODS) on the protective stratospheric ozone layers at the earths poles • Title VI responded by setting phase-out schedules for certain classes of ODS, along with aggressive recycling requirements for companies performing service on ODS-containing equipment

    48. What is the primary focus of the ODS program? • Timely phase-out of existing ODS and development of safe “ozone friendly” substitutes • Motor vehicle air conditioning service and repair • Stationary (residential, commercial and industrial) air conditioning service and repair • Both programs generally involve • technician training and certification • Leak repair and recycling requirements

    49. Who runs the ODS program? • EPA regional offices carry out the bulk of the program • Respond to public citizen complaints and tips • Conduct inspections • Carry out any necessary enforcement • States assist by providing compliance assurance handouts and other materials • EPA headquarters oversees the Class I and II phase-out

    50. P2 opportunities in the ODS program • The phase-out of certain ODS forces development of safer, more environmentally friendly substitutes • These alternatives are evaluated under EPA’s SNAP (Significant New Alternatives Policy) program • Many manufacturing facilities (e.g. semi-conductor) that relied on CFCs as a solvent cleaning agent have had to find safe, reliable alternatives • To minimize impacts of release of existing ODS during repair of large appliances, cooling equipment, and vehicle AC, these substances must be captured and recycled