V

  v -1
                 CLEAN AIR ACT
             INFORMATION PACKET
              TO ACCOMPANY RELEASE
          OF SECTION 812 PROSPECTIVE STUDY
                   NOV. 16,1999

-------
       Experience with Clean Air Act implementation, bolstered by the section 812 study,
demonstrates several lessons:

•      The CAA is working. It has produced, and is continuing to produce, tremendous health
       and economic benefits.

       Costs of the  1990 amendments are turning out to be far less than industry estimated
      during reauthorization. One reason is that the Clean Air Act creates incentives for
      technology advances, and industry repeatedly has met challenges by developing cleaner
      technologies.

      Benefits typically are underestimated because even today it is impossible to translate
      many health and environmental benefits into dollar terms. Also, 'available scientific
      studies may provide incomplete information on health and environmental effects of
      pollution problems, and later studies may reveal additional effects or effects at lower
      levels. Examples from the past include acid rain, stratospheric ozone, lead and particulate
      matter.                                                      •    •

      Experience shows that waiting for all uncertainties to be resolved before taking action to
      reduce air pollution could have tragic health consequences for the American people. We
      must take precautionary action when the weight of the evidence indicates a health or
      environmental threat.

     Further information and examples are contained in the attached information packet.

-------
  INFORMATION PACKET CONTENTS   ,.
  I. THE SECTION 812 STUDY OF CLEAN AIR ACT BENEFITS AND COSTS

        Fact sheet on the 812study: Costs and Benefits of the Clean Air Act Amendments of 1990
        Table: Adverse Health Effects Avoided in 2010
        Table: Primary Benefit and Cost Results for 2000 and 2010
        Tables of unquantified health and ecological benefits


  H. THE CLEAN AIR ACT: GETTING RESULTS

  •     Fact sheet: Cleaning the Air: Progress Since J990
       Chart: Emission reductions 1970-1997
       Chart: U.S. CFC Consumption
       Chart: Air Quality Improvement & Economic Growth in the U.S.


 HI. NEW INITIATIVES TO REDUCE SMOG AND PARTICULATE MATTER

       Fact Sheet: Maintaining momentum toward clean air: New actions to reduce smog and  '
      participate matter
 IV. THE CLEAN AIR ACT EXPERIENCE: PREDICTIONS VS. REALITY

      Fact sheet:  Clean Air Act Costs: Predictions vs. Reality
      UC-Riverside list: "Examples of Emerging Technologies for the 21st Century"
 9     Press releases by Institute for Clean Air Companies:
            - market outlook for air pollution control technology
            - role of environmental products industry in U.S. economy
For more information on the Clean Air Act and EPA air programs, .see.the home page for the
EPA Office of Air and Radiation on the web: http://www.epa.gov/oar/oarhome.html

-------
         I.
THE SECTION 812 STUDY
  OF CLEAN AIR ACT
 BENEFITS AND COSTS

-------
                                                                                  7/25/00
                                   FACT SHEET
          Costs and Benefits of the Clean Air Act Amendments of 1990

 EPA STUDY FINDINGS

       A November 1999 study by the Environmental Protection Agency - "The Benefits and
       Costs of the Clean Air Act, 1990 to 2010: EPA Report to Congress" - confirms that the
       large reductions in air pollution being achieved under the Clean Air Act Amendments of
       1990 are protecting millions of Americans from health effects ranging from premature
       mortality to shortness of breath.

       This congressionally mandated study of Clean Air Act benefits and costs, the most
       comprehensive study of it's type ever conducted, shows that the benefits of the 1990
       Amendments substantially exceed the costs. Although any benefit-cost analysis of clean
       air programs involves significant uncertainties, the study's central estimate indicates that
       benefits exceed costs by a ratio of 4 to 1. This estimate does not take into account the
       many health and environmental benefits that could not be translated into dollar terms.


WHAT ARE THE HEALTH BENEFITS OF CLEAN AIR PROGRAMS?

       An important finding of the report is the significant number of illnesses and premature
       deaths avoided as a result of the 1990 Clean Air Act.

       Based on the study's central estimates, the reductions in ground-level ozone, particulate
       matter and associated pollutants achieved under Clean Air Act Amendments of 1990 are
       expected to avoid the following adverse health effects in a single year — 2010:

            23,000 incidences of premature mortality
            20,000 cases of chronic bronchitis and 47,000 cases of acute bronchitis
            91,000 incidence-days of shortness of breath, 1,700,000 asthma attacks, and 7,200
            cases of chronic asthma
            22,000 respiratory related hospital admissions, 42,000 cardiovascular hospital
            admissions, and 4,800 emergency room visits for asthma.
            4,100,000 lost work days and 31,000,000 days with restricted activity due to air
            pollution-related illness

      All of these benefits are in addition to  a wide range of benefits that society has
      experienced as a result of the 1970 and 1977 Clean Air Act Amendments.

-------
 WHAT ARE THE EMISSION REDUCTIONS FROM CLEAN AIR PROGRAMS?

        Emissions of a wide range of air pollutants will be significantly lower than they would
        have been without the additional federal, state, and local clean air programs developed
        pursuant to the goals and requirements of the 1990 Clean Air Act Amendments.  For
        example, by the year 2010 the following reductions are expected to be achieved, relative
        to levels projected without the 1990 Clean Air Act programs:

              35 percent less smog-causing volatile organic compound emissions;
              39 percent less smog- and particulate-forming nitrogen oxide emissions;
        •      23 percent less carbon monoxide emissions;
              31 percent less particulate-forming sulfur dioxide emissions;
              significant reductions in other pollutants such as directly emitted particulate
              matter, mercury, and other toxic metal and toxic organic emissions; and
              significant reductions in substances which deplete the protective layer of
              stratospheric ozone.

       It is important to note that benefits are often underestimated hi cost/benefit analyses due
       to the fact that health scientists, ecologists, and economists have not yet developed the
       data and modeling tools needed to translate many health and environmental benefits into
       dollar terms. Furthermore, current scientific studies may provide incomplete information
       on health and environmental effects of pollution problems more of which may be
       revealed by later studies.

       However, experience shows that waiting for all uncertainties to be resolved before taking
       action to reduce air pollution could have tragic health consequences for the American
       people. Experience with pollutants such as lead, CFCs (chemicals that damage the
       stratospheric ozone layer), particulate matter, and acid rain shows the importance of
       taking action when the weight of the evidence indicates a health or environmental threat.


WHAT ARE THE COSTS OF CLEAN AIR PROGRAMS?

       Costs of pollution reductions to meet the 1990 amendments are turning out to be far less
       than original industry estimates.  One of the reasons is that the Clean Air Act creates
       incentives for technology advances, and innovative companies have repeatedly met
       challenges by developing cleaner, more efficient technologies.

       EPA's study found that in 2010, the estimated cost of achieving reductions in six major
       pollutants under the 1990 Amendments is 27 billion dollars, compared with a central
       estimate of monetized benefits of 110 billion dollars. As noted above, any benefit-cost
       analysis of clean air programs  involves uncertainties.

-------
BACKGROUND ON COST AND BENEFITS REPORT

•      Section 812 of the Clean Air Act Amendments of 1990 requires that the Environmental
       Protection Agency periodically assesses the effect of the Clean Air Act on the public
       health, economy, and environment of the country.

•      In October 1997, EPA issued a Report to Congress called The Benefits and Costs of the
       Clean Air Act: 1970 to 1990.  In 1991, as required by the Clean Air Act, EPA's Science
       Advisory Board formed an Advisory Council on Clean Air Compliance Analysis. This
       group of eminent, independent scientists and economists closely reviewed the design,
       implementation, results, and write-up of this retrospective study.  The results of the
       retrospective analysis revealed that the benefits of the 1970 and 1977 Clean Air Acts have
       been tremendous, far exceeding the costs.

•      The primary goal of Section 812 is to require EPA to perform thorough analyses of the
       costs and benefits of the Clean Air Act.  EPA has now completed the first prospective
       analysis in this series of assessments, and the analysis demonstrates that -contrary to
       industry claims— the benefits of the 1990 Amendments far exceed the costs.

•     The retrospective and prospective studies are perhaps the most in depth look at the Clean
       Air Act that has ever been performed.
NEXT STEPS

•      Many of the emissions reductions examined by the section 812.prospective study are
       already being achieved.  Under the Clean Air Act, the nation has made great strides in
       combating each of the major pollution problems that faced the United States hi 1990:
       urban air pollution, toxic air pollution, damage to the stratospheric ozone layer, and acid
       rain.

       But the nation still has a long way to go to reach the goal of clean air for every American.
       EPA is taking a series of actions to maintain the nation's progress in reducing ozone and
       particulate matter pollution, while litigation proceeds over the air quality standards for
       those pollutants.
FOR MORE INFORMATION

•      This study as well as information about the retrospective study are available on the
       Internet at (http://www.epa.gov/oar/sect812)

•      For further technical information on the report, contact Jim Democker at 202-564-1673,
       or E-Mail him at: democker.jim@epa.gov.

-------
   ADVERSE HEALTH EFFECTS AVOIDED IN 2010
                    (number of incidences)
      based on criteria pollutant reductions under 1990 amendments


  Health Endpoint	  Pollutant               Mean Estimate

  MORTALITY
  ages 30 and older            PM                           23,000


  CHRONIC ILLNESS
  chronic bronchitis            PM                           20,000
  chronic asthma              O3                             7,200


  HOSPITALIZATION
  respiratory admissions        PM, CO, NO2, SO2, O3          22,000
  cardiovascular admissions     PM, CO, NO2, SO2,03          42,000
  emergency room visits for     PM, O3                         4,800
   asthma
MINOR ILLNESS
acute bronchitis
upper respiratory symptoms
lower respiratory symptoms
respiratory illness
moderate or worse asthma3
asthma attacks3
chest tightness, shortness of
breath, or wheeze
shortness of breath
work loss days
minor restricted activity
days/any of 1 9 respiratory

PM
PM
PM
N02
PM
O3,PM
SO2

PM
PM
O3,PM


47,000
950,000
520,000
330,000
400,000
1,700,000
110,000

91,000
4,100,000
31,000,000

  symptomsb
 restricted activity daysa       PM                       12,000,000
a  These health endpoints overlap with the "any-of-19 respiratory symptoms" category.
b  Minor restricted activity days and "any-of-19 respiratory symptoms" have
    overlapping definitions and are pooled.

Source: Table 5-3, Clean Air Act Section 812 prospective study, November 1999

-------
 Table ES-1
 Summary Comparison of Benefits and Costs (Estimates in millions 1990$)
                                             Titles I through V
                                             Annual Estimates
                                 2000
                                                                              2010
Monetized Direct Costs:
Lowa
Central
High3
$19,000
$27,000
Monetized Direct Benefits:
Low"
Central
High"
$16,000
$71 ,000
$160,000
$26,000
$110,000
$270,000
Net Benefits:
Low
Central
High
($3,000)
$52,000
$140,000
($1,000)
$83,000
$240,000
Benefit/Cost Ratio:
 Low0
 Central
 High0
 less than 1/1

     4/1

more than 8/1
 less than 1/1

      4/1

more than 10/1
aThe cost estimates for this analysis are based on assumptions about future changes in factors such as consumption
patterns, input costs, and technological innovation. We recognize that these assumptions introduce significant
uncertainty into the cost results; however the degree of uncertainty or bias associated with many of the key factors cannot
be reliably quantified. Thus, we are unable, to present specific low and high cost estimates.

"Low and high benefits estimates are based on primary results and correspond to 5th and 95th percentile results from
statistical uncertainty analysis, incorporating uncertainties in physical effects and valuation steps of benefits analysis.
Other significant sources of uncertainty not reflected include the value of unqualified or unmonetized benefits that are
not captured in the primary estimates and uncertainties in emissions and air quality modeling.

* The low benefit/cost ratio reflects the ratio of the low benefits estimate to the central costs estimate, while the high ratio
reflects the ratio of the high benefits estimate to the central costs estimate.- Because we were unable to reliably quantify
the uncertainty in cost estimates, we present the low estimate as "less than X," and the high estimate as "more than Y",
where X and Y are the low and high benefit/cost ratios, respectively.

-------
  Table 5-1
  Human Health Effects of Criteria Pollutants
   Pollutant
                   Quantified Health Effects
Unqualified Health Effectsf
  Ozone       Respiratory symptoms
               Minor restricted activity days
               Respiratory restricted activity days
               Hospital admissions-
                       All Respiratory and
                       All Cardiovascular
               Emergency room visits for asthma
               Asthma attacks
                                                   Mortality*
                                                   Increased airway responsiveness to stimuli
                                                   Inflammation in the lung
                                                   Chronic respiratory damage / Premature aging of the lungs
                                                  . Acute inflammation and respiratory cell damage
                                                   Increased susceptibility to respiratory infection
                                                   Non-asthma respiratory emergency room visits
                                                    Neonatal mortality*
                                                    Changes in pulmonary function
                                                    Chronic respiratory diseases
                                                    other than chronic bronchitis
                                                    Morphological changes
                                                    Altered host defense mechanisms
                                                    Cancer
                                                    Non-asthma respiratory emergency room visits
 Particulate  Mortality*
 Matter      Bronchitis - Chronic and Acute
 (PMio,      New asthma cases
 PMa.s)      Hospital admissions -
                     All Respiratory and
                     All Cardiovascular
             Emergency room visits for asthma
             Lower respiratory illness
             Upper respiratory illness
             Shortness of breath
             Respiratory symptoms
             Minor restricted activity days
             All restricted activity days
             Days of work loss
             Moderate or worse asthma status
	(asthmatics)	
 Carbon      Hospital Admissions -
 Monoxide            All Respiratory and
                      All Cardiovascular
                                                  Behavioral effects
                                                  Other hospital admissions
                                                  Other cardiovascular effects
                                                  Developmental effects
                                                  Decreased time to onset of angina
                                                  Non-asthma respiratory emergency room visits
 Nitrogen     Respiratory illness
 Oxides       Hospital Admissions -
                      All Respiratory and
                      All Cardiovascular
                                                  Increased airway responsiveness to stimuli
                                                  Chronic respiratory damage / Premature aging of the lungs
                                                  Inflammation of the lung
                                                  Increased susceptibility to respiratory infection
                                                  Acute inflammation and respiratory cell damage
                                                  Non-asthma respiratory emergency room visits	'
 Sulfur       Hospital Admissions -
 Dioxide             All Respiratory and
                     All Cardiovascular
             In exercising asthmatics:
                     Chest tightness,
                     Shortness of breath, or
	Wheezing	
                                                  Changes in pulmonary function
                                                  Respiratory symptoms in non-asthmatics
                                                  Non-asthma respiratory emergency room visits
 •t Some of the unquantified adverse health effects of air pollution may be associated with adverse health endpoints that we
 have quantitatively evaluated (e.g., chronic respiratory damage and premature mortality).  However, it is likely that the value
 assigned to the quantified endpoint may not fully capture the value of the associated health effect (e.g., chronic respiratory
 damage may result in significant pain and suffering prior to mortality). As a result, we include such effects separately in the
 unquantified health effects column.
 ^Appendix D includes detailed discussion of the scientific evidence for these potential health effects and includes illustrative
 benefit calculations for them. Current uncertainties in our understanding of these effects do not support including these
 quantitative estimates in the overall CAAA benefits estimate. However,  ozone-related mortality may be implicitly quantified in
 the overall analysis as part of the PM mortality estimate because of the significant correlation between ozone and PM
 concentrations.
 * This analysis estimates avoided mortality using PM as an indicator of the criteria air pollutant mix to which individuals were
 exposed.

-------
 Table 7-5
 Ecological Effects of Air Pollutants
     Pollutant
      Quantified Effects
         Unquantified Effects
 Acidic Deposition
 Impacts to recreational
 freshwater fishing
 Impacts to commercial forests
 (e.g., timber, non-timber forest products)
 Impacts to commercial freshwater fishing
 Watershed damages (water filtration
 flood control)
 Impacts to recreation in terrestrial
 ecosystems (e.g. forest aesthetics,
 nature study)
 Reduced existence value and option
 values for nonacidified ecosystems (e.g.
 biodiversity values)
Nitrogen
Deposition
Additional costs of alternative or
displaced nitrogen input controls
for eastern estuaries
 Impacts to commercial fishing,
 agriculture, and forests
 Watershed damages (water filteration,
 flood control)
 Impacts to recreation in estuarine
 ecosystems (e.g. Recreational fishing,
 aesthetics, nature study)
 Reduced existence value and option
 values for non-eutrophied ecosystems
 (e.g. biodiversity values)
Tropospheric
Ozone Exposure
Reduced commercial timber
yields and reduced tons of carbon
sequestered
 Impacts to recreation in terrestrial
 ecosystems (e.g. forest aesthetics,
. nature study)
 Reduced existence value and option
 values for ozone-impacted ecosystems
Hazardous Air
Pollutant (HAPS)
Deposition
No service flows quantified
 Impacts to commercial and recreational
 fishing from toxification of fisheries
 Reduced existence value and option
 values for non-toxified ecosystems (e.g.
 biodiversity values)

-------
        n.

THE GLEAN AIR ACT:
 GETTING RESULTS

-------
                                 CLEANING THE AIR:
                                PROGRESS SINCE 1990

       The Clean Air Act Amendments of 1990 passed Congress with overwhelming support and
 were signed onto law by President Bush. This bipartisan legislation set ambitious air pollution
 reduction goals and was designed to achieve real results. Since then, the law has substantially
 reduced each of the major air pollution problems that faced the United States:

 -     Acid rain.  Annual sulfur dioxide emissions, which react to form acid rain, have been cut
       by more than 5 million tons, relative to a 1980 baseline. Most of these reductions have
       been achieved from utility power plants through an innovative market-based pollution
       allowance trading system. As a result, rainfall in the eastern U.S. is as much as 25 percent
       less acidic, and some ecosystems in New England are showing signs of recovery.
       Ambient sulfate concentrations have been reduced, leading to improvements in air quality
       and significant health benefits. Requirements for nitrogen oxides controls for utilities
       already have begun reducing those emissions, and will achieve a 2-million-ton NOx
       reduction beginning this year.

 —     Ozone layer depletion. Production of the most harmful ozone-depleting chemicals has
       virtually ceased in the United States.  These include CFCs, halons, methyl chloroform,
       and carbon tetrachloride.  The phaseout will reduce U.S. incidences of non-melanoma
       skin cancer by 295 million during the period 1989 through 2075, as well as protect people
       from immune system suppression and eye damage leading to cataracts. Provided the U.S.
       and the world community maintain the commitment to planned protection efforts, the
       stratospheric ozone layer is projected to recover by the mid 21st century.

 -     Smog and other common pollutants. The air in our nation's cities is substantially
       cleaner than in 1990. Ground-level ozone pollution, particulate matter, and carbon
       monoxide pollution have all been reduced significantly, producing dramatic decreases in
       the number of areas in nonattairiment.  Based on 1996-1998 data:

       -     Of the 42 areas designated hi 1991 as having unhealthy levels of carbon
             monoxide, 36 have met the CO air quality standard.

       -     Of the 98 areas designated as nonattairiment for the one-hour ozone standard, 62
             now have air quality meeting that standard.

       -     Of the 85 particulate matter nonattainment areas, 68 now have air quality meeting
             the PM10 standard.

-     Pollution from motor vehicles and fuels. Cleaner vehicles and cleaner fuels are one
       important reason that the nation's air quality is improving.  Today, the average new car
       meeting Tier I standards in the 1990 amendments is 40 percent cleaner than the average
       new car was in model year 1990. Moreover, automakers have begun selling cars in the
       Northeast that are 50 percent cleaner than Tier I cars, and will make these available

                                           1

-------
       nationwide by 2001, under an innovative agreement that EPA mediated among the states,
       U.S. auto companies and other stakeholders. Further reductions will be achieved by more
       stringent tier II standards in conjunction with low-sulfur gasoline. On the fuels side, 30
       percent of the gasoline consumed in the U.S., in 18 states, is cleaner-burning reformulated
       gasoline, which reduces emissions of smog-forming VOCs and toxics.

       Buses and trucks also are getting cleaner. Diesel-powered urban transit buses being built
       today release almost 90 percent fewer particulate emissions than buses built in 1990.
       Substantial emissions reductions also are being achieved for the first time through
       emissions standards for a variety of engines not used in highway vehicles ~ including
       locomotives, bulldozers, marine vessels, and lawn and garden equipment.

-      Industrial air toxics.  Rules issued since 1990 are expected to reduce toxic emissions
       from industry by 1.5 million tons a year ~ many times the reductions achieved in the
       previous 20 years.  These air toxics rules for chemical plants, oil refineries, aerospace
       manufacturing and other industries also are achieving large reductions in smog-forming
       VOCs and participates.

       Overall, between 1990 and 1998, annual emissions of common air pollutants ("criteria
pollutants") dropped by more than 10 million tons, and additional reductions will be achieved by
rules already in place. These results have been achieved through a combination of rules,
voluntary measures, market mechanisms, state  partnerships, and stakeholder negotiations.

       To recap: The Clean Air Act is working. Although significant pollution problems remain,
the law has substantially reduced each of the major air pollution problems that faced the United
States in 1990.
                                                                                  6/30/00

-------
X
o a
z i
*••
f-J
O 5?
UJ £
~ .2
> to
S» "E
Q m

N-
O
O
1
o
o



jo


(0


•
"o
Q.
^•M
wmmm
<
^l—
o 1
HIM •<+•
(/) -
•M C
c °-
t
m
\
i
•
•
>
•


— ^»
0^
00
O)















CO
o


. —
0^
m
N-









^^^^^^
o
i
Q^
^
5
^
^
3
O
(0
Q.

+
0^
m
CO













o
^Q
"x
o
Q
a
^
U)

—
U"*1
^^» ^^
CO
CO






CO
^^^
"0


-
o
Q.
E
o
o
"E
O)
O
IS
o


—
x^
^i












o
"D
"x
O
C
0
^
C
o
CO
o

	
^s "^
+ +

'c
OS
a.
o
a.

"0
CD
i-
VIMHI
LL
O
O
E
CO O
o 4=
2 ^
• I^^H 4MM
v c
5*
c B
Op ^ ^
laa ^^
»•»> Q
Z 2

-------
 E
 3
 (0
 c
 o
o

o
LL
O

CO
m
CO
           CO
                                            CO
If)
CN
CN
      seuuoi ou;aiAI jo spuesnom

-------
      3J
2
      >
I
      §
•-    o

-------
             m.

  NEW INITIATIVES TO REDUCE
SMOG AND PARTICULATE MATTER

-------
                MAINTAINING THE MOMENTUM TOWARD CLEAN AIR-
           NEW ACTIONS TO REDUCE SMOG AND PARTICULATE MATTER

        Since May, a federal court ruling has delayed implementation of the new, more protective
 health standards EPA established in 1997 for ground-level ozone and fine particle pollution. The
 decision challenged EPA's legal rationale for the standards, but did not question the underlying
 science. Currently, EPA is recommending an appeal of the decision to the Supreme Court. The
 Agency continues to believe these standards are essential for protection of public health, and
 ultimately will be implemented.

       In the meantime, Administrator Carol Browner is determined to keep EPA's emission
reduction initiatives on track and to work with states to reduce health threats from smog and
particulate matter. EPA recently has announced a series of actions to ensure continued progress:

       Tier II/Gasoline Sulfur. The Agency is on track to issue more stringent Tier II emissions
       standards for cars and light-duty trucks along with rules to cut levels of sulfur in gasoline.
       Many metropolitan areas need the emissions reductions from these rules to achieve healthy
       air. These final rules will cut nitrogen oxides and other emissions that contribute to ground-
       level ozone pollution and particulate matter, acid rain, crop damage and reduced visibility.
      Heavy Trucks and Buses/Diesel Sulfur. Administrator Rrnwnm- ;» o^ber announced a
      strategy to reduce by more than 90 percent harmful levels of smog-causing NOx and
      particulate matter from heavy duty trucks and the very largest sport utility vehicles. The
      strategy includes a plan to produce cleaner diesel fuel.

      Regional NOx Reductions. EPA will soon take final action on petitions from eight
      northeastern states, including NewYork and Pennsylvania, which, call upon EPA to impose
      NOx controls on power plants and large industrial combustion sources in 12 upwind states
      This action would reduce long-range transport of NOx and ozone pollution that is
      contributing to nonattainment problems downwind, as well as reducing pollution in states
      where the sources are located. EPA also will propose action on petitions recently received
      from additional states.  EPA still plans to implement an already issued rule (known as the
      "NOx SIP call") that more broadly requires 22 eastern states to cut NOx emissions that   -
      contribute to the regional ozone problem, assuming legal challenges to the SIP call can be
      surmounted.

      Ozone Attainment SIPs. For  10 ozone nonattainment areas classified as serious or severe,
      EPA.is assessing state plans for demonstrating attainment of the one-hour ozone air quality
      standard, which remains in effect for these areas. It appears that many of these areas will
      need to commit to additional emissions control measures and/or make other improvements in
      their plans before they are approvable. EPA plans, to propose, action on these plans in late
     November.               •

     Nationwide reinstatement of the one-hour ozone air quality standard.  Since issuing the more
     protective 8-hour ground-level ozone standard in 1997, EPA has revoked the one-hour
     standard in nearly 3,000 counties (wherever ozone levels met the old standard). But the
     NAAQS court opinion leaves much of the nation without an adequately enforceable ozone
     standard to guard against deterioration in air quality. As a result, EPA recently proposed
     reinstating the  old one-hour ozone standard nationwide.
                                                                                11/16/99

-------
             IV.

THE CLEAN AIR ACT EXPERIENCE:
   PREDICTIONS VS. REALITY

-------
               CLEAN AIR ACT COSTS: PREDICTIONS VS. REALITY

       The Clean Air Act Amendments of 1990 have achieved substantial reductions in air  .
pollution at reasonable cost, without the serious economic disruptions predicted by some critics.
Costs of the 1990 amendments are proving to be far less than initial industry estimates.

       One reason is that the act's requirements have created pressures and market opportunities
for technological innovation.  Technology breakthroughs also have enabled the nation to achieve
pollution reductions that some had predicted to be simply infeasible.

Examples of past predictions

Acid rain program.  A utility industry study in 1989 predicted the cost of fully implementing an
acid rain SO2 program at $4.1 billion to $7.4 billion annually.  More recent estimates by EPA
(including the November 1999 Section 812 study) and the U.S. General Accounting Office put
these costs at approximately $2 billion, and estimates from independent economists and industry
researchers range as low as $1 billion.

Reformulated gasoline,  In 1993, the oil industry estimated that meeting the Act's requirements
for reformulated gasoline would add 16 cents to the price of a gallon of gas. In 1995, the year the
program took effect, an Energy Information Administration survey found that the difference in
price between reformulated and conventional gasoline was 3 cents to 5 cents per gallon. In
November 1999, the EIA survey showed the price difference was only a penny a gallon.

VOC controls to reduce ground-level ozone pollution. The  Clean Air Working Group, a key
industry lobbying group during the 1990 reauthorization effort, said in August 1990 that
stationary source VOC control requirements later enacted as part of Title I of the 1990
amendments would cost an estimated $14.8 billion per year. With the benefit of updated
information, EPA (based on its November 1999 Section 812 study) now estimates the cost of
Title I stationary source VOC controls at approximately $3.9 billion in 2010.

Protection of stratospheric ozone layer. A chemical company spokesman testified in January
1990 that accelerating the phase-out of ozone-depleting CFCs to January 1996 would cause
severe economic and social disruption.  At the same hearing, a refrigeration industry
representative testified, "We will see shutdowns of refrigeration equipment in
supermarkets....We will see shutdowns of chiller machines,  which cool our large office buildings,
our hotels, and hospitals." In fact, the phase-out of CFC production was accomplished without
such disruptions. Chemical companies helped make this possible by rapidly developing
alternatives to CFCs.

Motor vehicle emissions standards.  A major American auto company representative in 1989
testified that "we just do not have the technology to comply" with the initial Tier I tightening of
tailpipe standards that became part of the 1990 amendments. Nonetheless, the auto industry was
able to begin producing vehicles meeting the standards in 1993. More recently, the auto industry

                                          1

-------
 entered into a voluntary agreement with EPA and states to produce even cleaner, low emission
 vehicles that are already being sold in some areas and will be available nationwide in 2001.

 Technology Innovation and the Clean Air Act

        As some of these examples show, the Clean Air Act has helped lead to technology
 innovation and performance improvements. Over and over again, innovative companies have
 responded with great success, producing breakthroughs such as alternatives to ozone-depleting
 chemicals and new super-performing catalysts for automobile emissions.

        There are many examples of technologies that were not commercially available a dozen
 years ago, but that now are important parts of pollution control programs. These include:

              Selective Catalytic' Reduction (SCR) for NOX emissions from power plants
              Gas reburn technology for NOX
              Scrubbers which achieve 95% SO2 control on utility boilers
              Sophisticated new valve seals and detection equipment to control leaks
              Water and powder-based coatings to replace petroleum-based formulations
              Reformulated gasoline
              LEVs (Low-Emitting Vehicles) that are far cleaner than had been believed
              possible in the late 1980s (an additional 95% reduction over the 1975 controls)
              Reformulated lower VOC paints and consumer products
              Safer, cleaner, burning, wood stoves
              Dry cleaning equipment which recycles perchlorethylene
              CFC-free air conditioners, refrigerators and solvents

       This pattern of technological progress is continuing today. In the regulatory impact
statement for the 1997 ozone and PM NAAQS, EPA identified a number of emerging
technologies — ranging from fuel cells to ozone-destroying catalysts to new coating technologies
— that may hold promise for achieving additional cost effective reductions of VOC, NOx and
particulate matter. Similarly, the University of California-Riverside's Center for Environmental
Research & Technology has identified a long list of new and emerging technologies that may
help achieve cleaner air in the 21st century (see attached document). EPA can help foster demand
for clean technologies by promoting market-based strategies that create a market for the most
efficient, best performing technologies.

Conclusion

       The Clean Air Act Amendments of 1990 have substantially improved the nation's air
quality - at costs substantially less than initially predicted by industry. One reason is that the act
has created market opportunities and has promoted technological innovations. This has helped
the nation achieve cleaner air in conjunction with strong economic growth.
                                                                                 4/25/00

-------
  Document prepared for the U.S. Environmental Protection Agency by the University of California- Riverside
  Bourns College of Engineering, Center for Environmental Research & Technology - October 1999



               Examples of Emerging Technologies for the 21st Century

  It seems that the technological innovation that has been spurred to date by Clean Air Act requirements is just the tip
  of the iceberg. Hundreds of new products are under development, in testing, or coming into the market that will
  further help meet air quality requirements. The following list includes new and emerging technologies that can help
  to reduce air pollution emissions and may help achieve cleaner air for all Americans in the 21st Century.

  1.  Mobile Source


  Fuel Cell and Electric and Electric Hybrid Vehicles
         GM Fuel Cell Electric EV1                  .       .   '
         GMParallel Hybrid EV1, Series EV1
         Nissan Motor Corporation Altra EV
         DaimlerChrysler New Electric Car (NECAR) 4
         Solectria Corporation Solectria Sunrise
         Zevco Millennium Taxi
         TbyotoFCEV
         Toyota e-com
         Toyota Prius Sedan
        Dodge Intrepid ESX2
        Robert Wright & Company ECE City Bus
        Chrysler Motor Corporation 1999 Electric Minivan (EPIC)
        TH/NK Nordic AS THINK (EV)
        Volvo Power Split Hybrid Research Car
        Honda Insight (hybrid electric)


Alternative Fuel Vehicles
        GMCNGEV1
        Toyota Camry CNG
        Honda GX  (Natural Gas)
        Ford Crown Victoria Dedicated NGV
        DaimlerChrysler 1999 NGV RAM Van/Wagon
        For JEconoline Dedicated NGV
        Ford F-Series Dedicated NGV
        Warsitz Hydrogen Spirit

Hybrid Electric Buses and Trucks
       Coval H2 Partners T-1000 Neighborhood Truck
       ISE Research Corporation ThunderVolt 701 and ThunderVolt 801-H (Heavy Duty Electric Trucks)
       Canadian Electric Vehicles Ltd'Might-E-Truck
       Toyota Motor Corporation Coaster (Hybrid Bus)

-------
 Alternative Fueled Trucks & Engines
         Chevrolet/GMC Medium Duty Conventional Truck
         Mack Trucks E7G Natural Gas Series (LE and MR)
         CMC Sierra Bi-Fuel CNG Pickup
         PawerTech 8.1 L CNG Engines
         Fiba Canning CNG & LNG Industrial Heavy duty Vehicles
         John Deere 6081H Natural Gas
         Cummins C8.3 G and 10 G (CNG/LNG)
         Caterpillar 3176B, C-10, C-12 (CNG/Diesel dual fuel)
        Detroit Diesel Series 50G/60G Natural Gas
        Detroit Diesel Efhanol Series

Cleaner Small Engines
        eCycle Inc. eCycle (electric)
        Zap Bikes Electricycle(electric)
        Electric MotorBikes Inc. Lectra (electric)
        Corbin-Pacific, Inc. Sparrow P.T.M. (electric)
        Advanced Engine Technologies, Inc. QX2 Internal Combustion Engine

Other Mobile Source Air Pollution Reduction Devices (all in R&D stage)

        FUELS
        ELFAquitaine Aquazole (Diesel fuel)
        TCPI, Inc Dr. Diesel™ (Diesel fuel additive)
       AG Environmental Products, L.L. C SoyGold Marine™ (Marine Fuel Additive)
       AG Environmental Products L.L.C SoyDiesel (diesel fuel additive)

       ENGINES
       Toyota Motor Corporation Direct-Injection 4-Stroke Gasoline Engine
        Volvo Car Corporation Volvo Petrol Direct Injection
       Caterpillar Dual-Fuel Engines (CNG, LNG, Diesel)
       Honda ZLEV and Integrated Motor Assist

       CATALYSTS & OTHER POST COMBUSTION TECHNOLOGIES
       Engelhard Corporation PdPLUS™ catalyst PTX Catalyst TriMax™ Catalyst
       Volvo Car Corporation Chemically Heated Catalyst
      National Renewable Energy Laboratory andBentler Industries Variable Conductance Insulation (VCI)
       catalytic converter
      Siemens Automotive SINOx
       Volvo Car Corporation and Engelhard Corporation PremAir™ catalyst
      Johnson Matthey Cam Converter Technology (CCT™)
      Engelhard Corporation DPX Soot Filter & STX Diesel Soot Filter
      Engelhard Corporation CMX Converter Muffler
      National Renewable Energy Laboratory andBenteler Industries Vacuum-Insulated Variable Conductance
      Catalytic Converter

      OTHER
      Volvo Car Corporation Integrated Starter Generator .
      Engelhard Corporation: GPX Coatings (applied to internal combustion components to reduce emissions,
      improve fuel economy and increase power output)

-------
  2.  Stationary Source


  Renewable Resource Fuels & Energy

         Biomass

         Hynol High Efficiency Biomass Fuel Production Process (currently in testing at the University of
         California Riverside)
         Syntroleum Corporation The Syntroleum Process®
         BG Technologies LLC BG Systems (biomass conversion system)
         Synergy Technologies Corporation Syngen                      •.   •
         FLS miljo Group Biomass-fired Boiler

         Solar

         Solar Energy Limited Hydro Air Renewable Power Systems (HARPS)
         BP Solar EUCLIDES™ Concentrator
         BP Solar APOLLO® Thin Films
         BP Solar LGBG Mono-Crystalline Modules
         Green Mountain Solar"" Polycrystalline Modules
        SunLab Solar Two
         UNI-SOLAR Electric Modules
        Siemens Solar Industries Copper Indium DiSelenide (CIS) thin film modules

        Wind Power

        Southwest Windpower AIR wind module
        Advanced Wind Power, Inc. AWT-26
        New World Power Technology North Wind 250
        Zond Systems Z-40

        Energy Reduction Devices

        AMCEC Inc AMCEC ECOVAP (latent heat recovery process)
        Praxis Engineers, Inc BANGS (control system)
        National Renewable Energy Laboratory (NREL) Energy-10 (energy-efficient software for new buildings)
        Praxis Engineers, Inc. PECOS™ & SCYCLOPS™ (plant optimization software)
        Power Integrations, Inc. TinySwitch Integrated Circuit (electrical reduction chip)
        Syntha Corporation Syntha 2000 (plant optimization software)


Stationary Fuel Cells
       Energy Research Corporation Direct Fuel Cell (DFC)
       Zevco Alkaline Fuel Cell
       BCS Technology Forced-Flow PEM Fuel Cell
       H Power Corporation EPAC™-PowerPEM®-D35, PowerPEM®-PS250 PowerPEM®-RW35
       PowerPEM®-SSG50
       Energy Partners NG2000
       Ceramic Fuel Cells Ltd. Ceramic Fuel Cell
       Global Thermoelectric R & D Solid Oxide Fuel Cell
       Warsitz WFC 25 and WFC 50 Series High Performance Fuel Cells

-------
  Catalysts

          General Catalysts

          CO/VOC
          Goal Line Environmental Technologies LLC ADCAT™ CO Oxidation Catalyst
         Johnson Matthey DualOx™Catalyst
         Engelhard GEN™ diesel oxidation catalyst
         MIRATECH Corporation Oxidation Catalyst
         Glenro Catalytic Fume Oxidizer (used in hot air drying ovens.)
         Prototech Company PRO*PEL-VOC pellets
         Prototech Company PRO*BROIL™ catalyst (restaurant applications)
         Engelhard Corporation CharCat900 Catalyst (restaurant applications)
         Smith Environmental Corporation Catalytic Oxidizers, Direct-Fired Oxidizers., Smith PTO™ system
         Goal Line Environmental Technologies SCOVOx

         NOx
         Detroit Stoker Company METHANE de-NOx™
         Johnson Matthey SCR Catalyst
         Engelhard VNX™ Catalyst
         Catalytica Combustion Systems XONON™ Combustion System
         Catalytic Combustion Corporation Monolith Catalysts

         Other
         Casso-Solar Gas Catalytic Heaters (used in Infrared (IR) heating systems)

         Regenerative Catalytic Oxidizers
         Huntington Environmental Systems Econ-Abator® Regenerative Catalytic Oxydizers & Econ-Nox™ Catalysts
         Huntington Environmental Systems HES/RCO
        Johnson Matthey RCO Catalyst
         Goal Line Environmental Technologies SCONOx™ Catalyst System

        Regenerative Thermal Oxidizers
        Huntington Environmental Systems HES/RTO
        Adwest Technologies, Inc RETOX® Regenerative Thermal Oxidizers
        Durr Environmental, Inc Reeco RE-THERM® RL
        Durr Environmental, Inc TAR Recuperative Thermal Oxidizer
        Durr Environmental, Inc Ecopure® - Recuperative Thermal Oxidizer
        Smith Environmental Corporation Smith RTO/TCO
        Smith Thermal Recuperative Oxidizer SCO

        Ozone Destroying Catalyst
        Volvo Corporation & Engelhard Corporation Premair
Ultra Low-NOx Gas Fired Burners

       Bloom Engineering Co Gemini Ultra2 Low NOx Burner Series
       Combustion Tec Throughport Fishtail Burner & Mine Burner Firing
       Combustion Tec Oxygen Enriched Air Staging
       Coen Company Distributed Air Flow (DAF) Low NOx Burner
       Clayton Industries Low NOx/CO Steam Generators
       Coen Company Quantum Low NOx (QLN) burner

-------
         John Zink Company Cool Fuel (low NOx burner retrofit)
         Detroit Stoker Company DETROIT® DB Low NOx Burner
         Dyson Hotwork Limited Low NOx Regenerative Burner .
         Energy and Environmental Research Corporation FlamemastEER &EER Reburn Process
         FLS miljo Group Benson-Type Power Station Boiler
         Radian International Radian Rapid Mix Burner (RMB)
         Parker Boiler Company Premix Metal Fiber Burner
 Coating Technologies

         Low VOC primers & coatings
         United Coatings ACRYLEX 300 acrylic metal primer, and Primer 707 wood primer
         American Formulating and Manufacturing low VOC interior and exterior primer
         American Formulating and Manufacturing Safecoat Enamels
         Benjamin Moore & Co. Eco  Spec Interior Latex Flat 219 Semi-Gloss 224
         United Coatings Interior and Exterior flat paints and roof coating
         Madison Chemical Industries, Inc. Madison Alumizinc 2000™ (primer/coating on tanks)
         Madison Chemical Industries, Inc. Madison Corropipe IITX-15 pipe coating

         Zero VOC primers & coatings
        Evans Manufacturing, Inc Evans Peel Coat, Type I, II, HI & IV coatings
        Silvertown Products, Inc. Wood Defense wood finish
        NonToxiCA Inc. Interior Flat Paint Series 100-1, and interior satin Series 200-1 paint
         Spectra-Tone® Paint Corporation Spectra-Tone® Enviro Interior Enamel (8800)  & Semigloss (9900)
         Vianova RESYDROL® Emulsions coatings, high gloss enamels, and wood stains and varnishes
        Electrostatic Technology, Inc. ETI Powder Coating System
        Madison Chemical Industries, Inc Madison Corrocote IIPW™ water pipe sealer
        Madison Chemical Industries, Inc Madison Corrocote II Plus™ underground tank sealer
        Madison Chemical Industries, Inc Madison Marithane II Multi marine coating

        Material Application Technologies
        American Turbine, Inc. HVLP AT-Series
        Lemmer Spray Systems Ltd. Lemmer T-55 HVLP
        The Better Paint Tray LLC
        Nordson Corporation Centuty® Selective Conformal Coating System

Solvent-Free Adhesives and Cleaners

        Low VOC Metal and General Cleaners
        Durr Environmental KFA '(carbon fiber adsorption)-
        Detrex Corporation Modular Detrex batch cleaning system
        Epcon® Industrial Systems, Inc. Epcon® Deoilers
        Micro Care Corporation ExPoxy™ Remover
        PCI of America HURRISAFE brake cleaners, carburetor, high pressure degreasers
        Sulzer Metco Plasma Spray
        Micell Technologies Inc. Miclean™ degreaser
        PCI of America HURRISAFE 9000 series (general cleaners)
        CRC Industries HydroForce™ Butyl-Free All Purpose Cleaner
        Micro Care Corporation VeriClean Flux Remover

-------
         Zero-VOC Metal & Parts Cleaners
         NW Technologies, Inc PC Series
         Oakite Products, Inc Oakite® Gardoclean A5502
         RotoJet of America Co., Roto-Jet Spray Washing Cabinet
         ChemFree™ Corporation ChemFree SmartWasher®, SmartWasher® Supersink
         Detrex Corporation Detrex Series rotating basket washer and spray jet parts washer
         Kleer-Flo Company Greaseoff™ multi-metal cleaner
         CAR Alpheus Inc CO2 MiniBlast ™ Model SDI-5
        Drumbeaters of America, Inc Cryo-Cleaner® System

        Zero-VOC Electronic Parts Cleaners
        Micro Care Corporation OS-20 Precision Cleaner
        Smart Sonic Corporation SmarTsonic® Model 2000 & Model 4200

        Other Solvent Related Technologies
        TransGlobal Environmental Products TranSolv Technology (recycles industrial solvent waste)
        John Zink Series 2000™ Vapor Combustion System
        AMCEC Inc Solvent Recovery Systems
        Baker Furnace, Inc BIOTON® ( biological oxidation system )
        Geomembrane Technologies, Inc Membrane Cover and Liner Systems
3.  Other Cleaner Consumer Products

       Lawn & Garden

       Lawn-Boy Electric Series of Lawnmowers
       Toro® CafeFree electric mowers
       Black & Decker CMM1000 electric Lawnmower
       GrassMasters LawnPup
       Ryobi Outdoor Products, Inc. TrimmerPlus 1090r (electric trimmer)

       Clean Power & Fuels

       United Solar Systems Corporation Unipower USF-32, USF-11, USF-5 (portable solar battery chargers)
       Green Mountain Energy Resources Solar*"1 Thin Films for rooftops
       Solarex Millennia™ (rooftop solar cells)
       ACR Solar International, Inc. Fireball 2001 (solar water heater)
       Warsitz Enterprises, Inc. HydroGrill™ (barbeque)
       Warsitz Enterprises, Inc. RoamPower™ (portable Hydrogen power)

-------

                         CONTACT:                                                  RELEASE DATE:   '
                         Jeffrey C. Smith, tel: 202.457.0911                           September 29, 1999

             IMPROVED AIR POLLUTION CONTROL TECHNOLOGY MARKETS TO CONTINUE
                                          AT LEAST THROUGH 2002

                    Total Air Pollution Control Technology Market to Hover Around $3 Billion a Year

                 Washington, D.C.  The Institute of Clean Air Companies, Inc. (ICAC), forecasts that the overall U.S.
         market for air pollution control and monitoring technology, which has risen significantly from levels earlier this
         decade, will increase gradually at least through 2002.  Most technology sectors of the overall industry will
         increase marginally over this time frame, and the largest sector will be for NOX controls.

                Commenting on these findings, ICAC Executive Director Jeff Smith stated: "The air pollution control
         and monitoring technology industry is ready to respond with cost-effective compliance solutions to this
         increased need to reduce emissions, of air pollutants".

                The 72-page Market Forecast analyzes the U.S. market for electrostatic precipitators, fabric filters,
         VOC and NOX control systems, wet particulate scrubbers, flue gas desulfurization systems, and continuous
         emission monitors annually through year 2002.  The report also estimates aftermarket bookings.

                "The forecast shows that the markets for most individual technology sectors in the industry will remain
         strong, giving the air pollution control technology industry some momentum over the forecast period, a positive
         change from the relatively low business  volumes that characterized the industry earlier this decade. The
         industry welcomes the forecasted trends, and is optimistic that clean air initiatives and economic growth will
         sustain this momentum beyond the 2002 forecast horizon.  Full, common-sense  implementation and
         enforcement of the Clean Air. Act — which .opinion polls show that the U.S. public enthusiastically supports
         to protect its health and environment — will  pay a dividend of new American jobs in the engineering and
         construction industries as these pollution control technologies are installed," Smith added.

               Accompanying each product forecast is an analysis of market trends and the technological, regulatory,
         and general market influences. Historical statistics and a statistical forecast summary in both constant and
         inflated dollars are also included.

               ICAC's September 1999 Market Forecast is available ($795) to the public.  To order, send a check
        or purchase order to ICAC,  1660 L Street, N.W., Suite 1100, Washington, D.C. 20036. To place a telephone
        order using AMEX, or to request a free copy of the report's table of contents, call ICAC's Sharon Jenkins tel-
        202.457.0911.

               ICAC is the nonprofit  association of companies that supply air pollution  control technology and
        monitoring systems.  Its mission is, in part, to work to assure clean air policy that promotes public health,
        environmental benefit, and industrial progress, [end]
1660 L Street, NW • Suite 1100 « Washington, DC 20036 ® 202-457-0911 » Fax 202-331-1388 • E-mail: jsmith@icac.com

-------
              
-------
   Notes (cont'd):
   3. Id-                                                         .               .
   4. Goodstein E.B., Jobs and the Environment, Economic Policy Institute, 1994 pp 7-12
   ~M^ST^S^^^

   Science, vol. 17 1Q«Q                a            • nenen[s- UMfcCrA Tnfp.maf.^r,a; Journal nf Mariafrem^nt
          K, Jbfe Q^pettte^ ^^0™/          matAre fcjtoteue?. World Resources Institute,
  7 .Business Week, Do Pollution Regs Cost Jobs? November 16  1998


ICAC . 1660 L St., N.W. * Suite 110 . Washington, B.C. 20036 . Tel: 202.457.0911 * Fax: 202331.1388

-------