The Cutting Edge™ June 2004

Public Policy

The Environmental Protection Agency (EPA) is rolling out what it is billing as a suite of actions that will dramatically improve America's air quality. According to the EPA, taken together, they will make the next 15 years one of the most productive periods of air quality improvement in America's history.

The first action taken by the EPA was to issue revised designations of areas of the country that have not attained required air quality standards. In 1970, Congress passed the Clean Air Act and required the EPA to periodically set standards for specific pollutants. In 1971 and again in 1979, the EPA established standards for smog, often referred to as the one-hour ozone standard. In 1987, the EPA established the PM10 particle standard for soot. Areas not meeting the national standards were identified (referred to in EPA jargon as "nonattainment" areas), state plans were developed, and the air began to improve.

In 1997 an 8-hour ozone standard, 0.08 parts per million (ppm) averaged over eight hours, replaced the 1-hour standard that had been in place since 1979. Implementation of the new standard was held up by a lengthy legal battle.

Nineteen entire states meet the new more protective standard. There are no non-attainment areas in the northwest. There are no nonattainment areas in the five great basin and Rocky Mountain States, or in the five great plain states north of Texas. The entire population in Iowa, Minnesota, Florida, Mississippi, Vermont, Hawaii and Alaska do not live in non-attainment areas. There are roughly 2700 counties meeting the 8-hour ozone standard nationwide.

Approximately 100 metropolitan areas, including approximately 490 counties, have now been designated as nonattainment areas for the 8-hour standard. By comparison, roughly 100 areas, including about 370 counties, were designated as nonattainment areas for the less stringent 1-hour standard in 1991.

Ground-level ozone, a primary ingredient in smog, is formed when volatile organic compounds (VOCs) and Nitrogen oxides (Nox) react chemically in the presence of sunlight. Cars, trucks, power plants, and industrial facilities are primary sources of these emissions. States and localities may be required to take measures to control ozone pollution which could include stricter controls on emissions from industrial facilities, additional planning requirements for transportation sources, or other programs like gasoline vapor recovery controls.

The EPA is also expected to issue nonattainment areas for fine particulate matter. Fine particles are those less than 2.5 micrometers in diameter and are also referred to as PM2.5. Particulate matter is a complex mixture of extremely small particles and liquid droplets. Fine particles can be emitted directly or formed secondarily in the atmosphere. Particles emitted directly (also known as primary emissions) come from sources such as diesel engines, wood burning activities, and other industrial and commercial combustion processes. "Secondary" particles are those that are formed by reactions of gases in the atmosphere. For example, sulfur dioxide gas from combustion of coal in power plants and industrial boilers reacts with other gases in the atmosphere to form sulfate particles. Similarly, nitrogen oxide gas from combustion sources such as automobiles and industrial facilities forms nitrate particles in the atmosphere. Other secondary particles include organic carbon particles, which can be formed when certain volatile organic compounds react with other gases in the atmosphere. Sources of organic particles include burning activities, motor vehicle emissions, and other combustion activities.

In mid-February 2004, states and tribes recommended PM 2.5 designations to EPA for areas to be designated as "nonattainment." EPA is reviewing these recommendations and will respond to the states and tribes during the summer of 2004. By December 31, 2004, EPA will finalize the designations for the PM2.5 standards. Once nonattainment designations take effect, the state and local governments have three years to develop implementation plans designed to meet the standards by reducing air pollutant emissions contributing to fine particle concentrations.

The EPA has indicated it will issue a Clear Air Interstate Rule later this year. The Interstate Rule will use a cap and trade system to reduce the target pollutants - nitrogen oxide and sulfur dioxide (Sox) - by 70 percent when fully implemented. Sox and Nox are the primary ingredients for ozone and fine particulates.

The Clear Air Non-Road Diesel Rule will be finalized within the next 30 days. This rule will change the way diesel engines are made and the way diesel fuel is refined.

Finally, the Clean Air Mercury rule will regulate mercury from power plants for the first time ever and result in a 70 percent reduction. Coal-fired power plants are the largest domestic source of mercury emissions. The EPA plans to finalize the rule by the end of the year.