United States
Environmental Protection Agency
Office of
Air and Radiation
Publication # 410-N-93-001
June 1993
Welcome to Marketplace...
by Carol M. Browner, Administrator, U.S. EPA
I want to personally introduce the And those costs are significant —
first issue of an important new initial projections for the Clean Air
-first issue of an important new
EPA newsletter, The CleanAirMar-
ketplace. Published periodically, The
Clean Air Marketplace will bring
you news about important techno-
logical and business developments
in the air pollution control industry.
It will also bring you the views of
key industry and government lead-
ers on the connection between clean
air and an expanded economy.
Strengthening this connection is one
of my top priorities as EPA Admin-
istrator and, more broadly, a top pri-
ority of the Clinton Administration.
Public perceptions of the eco-
nomic impact of environmentallaws
and regulations focus almost exclu-
sively on the costs of compliance.
Carol M. Browner
Act Amendments of 1990 (CAAA)
ran as high as $25 billion. EPA is
committed to minimizing the cost of
all the regulations we develop.
Until recently, the benefits of
clean air and other environmental
legislation were discussed primarily
in terms of improved public health
and environmental quality. And the
CAAA will make a big impact, cut-
ting air pollution by reducing air
emissions by 56 billion pounds.
But there is more to the story!
There are also economic benefits
created by clean air and other re-
quirements that EPA implements.
The conventional wisdom is that en-
vironmental compliance expendi-
tures go down a "green hole" and
represent lost economic resources. I
believe that is the wrong way to
think about the issue. These re-
sources do not simply disappear.
They go to firms in the fast-growing
environmental goods and services
industry. Firms in this industry pro-
duce good jobs, profits, and exports.
See BROWNER, page 11
Highlights
Upcoming Conference
Discover new business oppor-
tunities at the 1993 Clean Air
Marketplace conference.
See Page 2
Sharks, Air Rules,
and American Jobs
Clean Air Act compliance
affects job growth, economic
progress, and exportpotential.
See Page 3
New Air Toxics
Technologies
Industries are developing
innovative solutions to air
pollution problems.
See Page 4
Southern California Strives
for Clean Air
SCAQMD advances technolo-
gies in an effort to achieve
clean air goals.
See Page 5
A Note To Our Readers
If you would like to add your
name to The Clean Air
Marketplace mailing list,
pleasecall (703) 934-3172.
Suggestions for upcoming
stories or for improving the
newsletter also are welcome.
401 M Street, SW (ANR-443), Washington, DC 20460
-------
The Clean Air Marketplace 1993
New Business Opportunities Created by the Clean Air Act Amendments
A Conference and Exhibition Sponsored by the U.S. Environmental Protection Agency
September 8-10, 1993 • Sheraton Washington Hotel « Washington, D.C.
EPA is sponsoring the Clean Air Marketplace 1993 Conference and Exhibit, a major national conference
providing a unique opportunity to explore the new business opportunities and markets created by the Clean Air Act
Amendments of 1990 (CAAA). The Clean Air Marketplace 1993 will bring leading business executives together with
key federal officials responsible for implementing the CAAA, top-level state and local officials, and others with an
interest in examining the link between a clean environment and a healthy economy.
Keynote Speakers
Vice President Al Gore (invited)
EPA Administrator Carol M. Browner
i Senator Max Baucus (D-MT), Chairman of the Senate Environment and Public Works Committee
Secretary of Transportation Frederico Pena
Topics
4- The vital link between the Clean Air Act, new business opportunities, and enhanced
international competitiveness and export opportunities.
* The role of all levels of government in supporting the Clean Air Marketplace, including the
important role of economic incentive programs.
+ The status of the marketplace in specific areas such as stationary source technology, mobile
source technology, air pollution control services, pollution prevention, and financing for new
business opportunities and pollution control investments.
Exhibits
There will be an exhibit hall with over 50 booths showing innovative clean air technologies and services that have won a
niche in the clean air marketplace.
Co-Sponsors
American Automobile Manufacturers Association • American Gas Association • American Institute of Chemical
Engineers • American Institute for Pollution Prevention • American Petroleum Institute • Chemical Manufacturers
Association • Coalition for Safer, Cleaner Vehicles • Edison Electric Institute • The Environmental Business Association
• The Environmental Business Council of the U.S., Inc. • Environmental Law Institute • Institute of Clean Air Companies
• Manufacturers of Emission Controls Association • National Association of Manufacturers • National Association for
Environmental Management • NESCAUM • South Coast AQMD • STAPPA/ALAPCO
The conference participation fee is $65. The exhibit booth rental fee is $300. For registration information, call the
conference line at (703) 934-3747.
-------
EPA Office of Air and Radiation
June 1993 Page 3
Sharks, Air Rules, and American Jobs
by Jeffrey C. Smith, Executive Director, Institute of Clean Air Companies
Our Nation's industrial base
shares a survival imperative
with sharks: keep moving or die.
Competition is keen, necessitating
an international focus and greater
product innovation. What happens
tighter emission standards this activ-
ity will bring mean cleaner air, but
will it also retard a state's economic
progress? Should a state assume that
the stricter its air quality program,
the less competitive its economy will
Full implementation of the 1990 CAAA Amendments
could add another 20,000 jobs per year...
when the cost of Clean Air Act
(CAAA) compliance is inj ected into
today's business environment?
The answer, perhaps surpris-
ingly, is that economic progress is
unaffected, real job growth can oc-
cur, and export potential is created
for U.S. industry.
Interstate
Competitiveness
States are scrambling to comply
with CAAA deadlines for operating
permit programs, developing NOX
andRACT guidelines andVOC rules,
and conducting emission invento-
ries. The stricter accountability and
Jeffrey C. Smith
be with states having less stringent
requirements?
The answer to both these ques-
tions is a resounding "No," accord-
ing to MIT professor Stephen M.
Meyer's study, "Environmentalism
and Economic Prosperity: Testing
the Environmental Impact Hypoth-
esis."
This rigorous analysis ranked
each of the fifty states according to
the aggressiveness of its environ-
mental programs, then measured its
economic performance in terms of
growth rates in gross state product,
total (non-farm) employment, con-
struction employment, manufactur-
ing labor productivity, and overall
laborproductivity.
The data showed that states with
stronger environmental policies did
not experience inferior rates of eco-
nomic growth and developmentcom-
pared to states with weaker environ-
mental rules. In fact, "the data re-
vealed a clear and consistent posi-
tive relationship between the states'
See COMPETITION, page 8
NO Control
X ' - • • . . •'
Costs Exaggerated
The Institute of Clean Air Com-
panies (ICAC) recently released cost
figures for high-efficiency controls of
nitrogen oxides (NOx) that are 20-50
percent of the costs that were cited in
a previous report prepared for EPA
and the Northeast States for Coordi-
nated Air Use Management
(NESCAUM). The ICAC analysis is
summarized in a letter to NESCAUM
(April 14, 1993) that addresses the
cost-effectiveness of selective cata-
lytic reduction (SCR) NOx-removal
technologies. A subsequent letter
(May 26) addresses the commercial
feasibility and cost-effectiveness of
selective non-catalytic reduction
(SNCR) technologies. The earlier
EPA7NESCAUM report, prepared by
Acurex Environmental Corporation,
is entitled, "Evaluation and Costing
of NO^ Controls for Existing Utility
Boilers in the NESCAUM Region"
(EPA-453/R-92-010).
ICAC's cost figures indicate that
much more NOxcan be removed for a
given level of investment than air qual-
ity regulators may have been assum-
ing based on the earlier study. Con-
sideration of the ICAC numbers could
lead decision-makers to establish rea-
sonably available control technology
(RACT) standards that achieve more
NOx emission reductions at the same
cost.
The lower ICAC cost estimates
were derived from the experience of
Institute member companies. ICAC
represents firms that sell all types of
NOx controls.
For more information on the
ICAC analysis, contact Dr. Michael J.
Wax of ICAC at (202) 457-0911.
-------
The Clean Air Marketplace
June 1993 Page 4
Clean Air Act Amendments Spur
New Ways of Controlling Air Toxics
byBobBlaszczak, Office of Air Quality Planning andStandards, U.S. EPA
Since enactment of the Clean Air prevention and encouraging the de-
Act Amendments of 1990 velopment of innovative, more cost-
(CAAA), the Control Technology effective solutions. CAAA require-
Center(CTC) Hotline has experienced ments present a world of opportunity
a significant increase in the number to those who can deliver workable,
of calls promoting or requesting in- cost-effective air pollution control and
formation on new air pollution con- prevention solutions.
trol technologies. These calls come A major driving force for this
from vendors who want to let us know interest in new innovative technol-
about their new products; state and ogy has been Tide HI of the CAAA,
BobBlaszczak
New technologies are being promoted by the regula-
tory environments in the United States and Europe.
local agencies looking for emerging
technologies that may help solve their
emission control problems for haz-
ardous air pollutants (HAPs), volatile
organic compounds (VOCs), or ni-
trogen oxides (NOx); and industry
environmental managers looking for
better ways to control their emissions.
There are many examples of new
and innovative solutions to air pollu-
tion problems. Technologies con-
ceived hi the 1980s are finally emerg-
ing as solutions to our air pollution
problems. A driving force for this
emergence has been the CAAA. The
CAAA has forced us to come to grips
with the problems of hazardous air
emissions, acid rain, stratospheric
ozone depletion, and unhealthy air. It
has forced us to rethink how we ap-
proach pollution control, rewarding
which addresses HAPs. The Early
Reductions Program provided for in
Section 112(i)(5) reflects the grow-
ing interest in reducing HAPs. This
program encourages industries to re-
duce emissions of HAPs by at least 90
percent well in advance of promulga-
tion of emission standards that will
affect their source category.
To date, more than 70 commit-
ments have been received to reduce
total emissions of HAPs by 36 mil-
lion pounds per year. Although many
of these proposals use tried and true
technologies, a significant number in-
clude innovative and creative ap-
proaches to reduce emissions. These
include pollution prevention meth-
ods like process modifications, which
eliminate or substantially reduce emis-
sions, and the application of new and
more effective stack controls.
Examples of new ideas are every-
where. Innovative technologies to
reduce emissions of VOCs and HAPs
in the wood furniture industry in-
clude reformulated coatings. These
new coatings are typically waterborne,
and incorporate such innovations as
nitrocellularbases,ultraviolet-curable
polymers, and acrylic latex in their
formulas.
Water-based stains and wood fill-
ers are also available. A new coat-
ings/application technology devel-
oped by Union Carbide, the
Unicarb™ system, reduces emissions
of VOCs and HAPs by substituting
supercritical carbon dioxide for as
much as 80 percent of the organic
solvents required in conventional sol-
vent-based nitrocellulose spray ap-
plications. In addition, innovative
technologies in air flow design are
reducing air flow in paint spray booths,
See TOXICS, page 9
-------
EPA Office of Air and Radiation
June 1993 Page 5
Local Air District Takes Leadership Role in
Technology Advancement and Development
byNickNikkila, South Coast Air Quality Management District
air in Southern Califor-
nia is now 50 percent more
healthful than it was in the mid-1970s,
this is still the only area in the nation
designated as "extreme non-attain-
ment" for ozone as defined by the
Federal Clean Air Act Amendments
of 1990. In order to achieve our goal
of healthful air quality by the year
2010, we must further reduce our pol-
lutant emissions by more than 80 per-
cent on a per capita basis. Current
technology is insufficient to provide
that level of reduction. As a result, like
the automotive emission standards of
the mid- 1970s, new standards for emis-
sions reduction must set the pace of
technological development. However,
in today's difficult economic environ-
ment, it is no longer appropriate to
simply define the problem and place
the burden for the solution on the regu-
lated community. Regulators must
become part of the solution by looking
beyond the traditional perspective of a
single-focus environmental regulatory
agency.
In recognition of the need to take
a more proactive approach toward
solving Southern California's air qual-
ity problems, the South Coast Air
Quality Management District
(SCAQMD) created an office of Tech-
nology Advancement in 1988. In
1992, the agency added an office of
NickNikkila
Economic Development and Busi-
ness Retention.
The Technology Advancement
office, headed by Chief Scientist Alan
Lloyd, Ph.D., has been the keystone
of our proactive approach. This of-
fice keeps the agency in touch with
emerging technologies and, by lever-
aging public and private funds, has
targeted over $100 million toward
research, development, and commer-
cialization of emission-reduction
technologies. For example, the Los ment of alternative-fuel vehicles. In
Angeles Basin has consistently been its efforts to encourage the develop-
the nation's only nonattainment area ment of "zero-emission" vehicles,
In today's difficult economic environment, it is no
longer appropriate to simply define the problem
and place the burden for the solution on the regu-
lated community.
for nitrogen dioxide. Consequently,
the agency directed funding toward
the development of lower-emitting
nitrogen oxide (NOx) technologies.
A direct result of this effort has been
rapid development of low-NOx burn-
ers. Another example of the office's
efforts focuses on mobile source emis-
sions, a major cause of the overall air
quality problem. In response to those
efforts, the SCAQMD has directed
significant support to the develop-
the Technology Advancement office is
deeply involved in the development of
battery-powered and fuel cell-powered
vehicles and the infrastructures re-
quired to support them.
The technologies created by this
partnership between public and private
interests provide two primary benefits
to Southern California. First, they
assist existing industries in their ef-
forts to reduce pollution while remain-
ingcompetitivein today's global mar-
fee SCAQMD, page 10
-------
The Clean Air Marketplace
June 1993
Page 6
Cleaning the Air, Growing New Jobs and Export;
byRobertBrenner, Director, Office ofPolicyAnalysisandReview, U.S. EPA
i"T%roughout the debates during pas-
i sage of the Clean Air Act Amend-
ments of 1990 (CAAA), critics argued
that stark choices must be made be-
tween economic growth and further
progress in air quality. However, in
implementing the CAAA, EPA has
foundthatenvkonmental objectives can
be met while simultaneously fostering
job and export opportunities.
Historically, new federal environ-
mental laws and regulations have been
the principal drivers in the develop-
ment of me environmental marketplace.
Stimulated by the provisions of the
CAAA, new markets and technologies
inairpollutioncontrol, emissions moni-
toring, and alternative energy are ex-
pected to result in significant economic
growth and employment opportunities
well into the next century. Environ-
mental regulations abroad reinforce the
demand for exports in these areas.
Meanwhile, defense and other indus-
tries retooling for new markets can shift
their physical and human resources to
the environmental protection industry
and retain jobs that might otherwise
have been lost.
However, we should notignore the
fact that the CAAA and other ambitious
environmental requirements impose
costs and hardships on some regulated
businesses. At EPA we are committed
to keeping these costs as low as pos-
sible. As EPA improves the cost-effec-
tiveness of its environmental regula-
tions, the prospects for economic growth
and competitiveness are also improved.
It does mean that we keep the issue
in perspective. For although they are
often posed as alternatives, clean air
and economic growth can go hand-in-
hand. Indeed, in countries around the
world—fromtheformerSoviet Union
to Mexico — policymakers and busi-
ness leaders are discovering thatprevi-
ous efforts to grow at the expense of the
environment have created some of the
biggest impediments to future growth.
Themarketforenvkonmentalgoods
and services is large and growing at a
tive increase of $50 billion to $70 bil-|
lion over today's revenues by the yea
2000. TheCAAAwillspurevengreater
growth over the following two decades.l
These figures, in fact, are probably!
conservative. Additional revenue gainsi
EPA Uses Creativity and Innovation to
EPA is taking steps to improve its role as a
technology advisor and leader by catalyzing
efforts to develop and commercialize new tech-
nologies, disseminating information to industry,
and responding to innovative entrepreneurs. EPA
is supporting several new programs that are
aimed at promoting U.S. exports and cultivating
markets abroad for U.S. products. The most
important initiatives aimed at promoting innova-
tion arid exports include:
The Environmental Training Institute (USETI), a
joint venture between the private sector and the
U.S. government, has formed a cooperative
network of public agencies and private compa-
nies to help build capacity for environmental
protection in developing countries. The USETI
shares U.S. environmental advances by provid-
ing training courses in pollution control and
waste management. USETI helps build demand
for U.S. pollution control exports by putting
foreign government and private officials to the
U.S. in direct contact with U.S. firms.
EPA's Green Lights
install energy-efficj
their lighting bills
nies have made a |
energy-efficient ligr
In return, EPA pr<]
assistance service!
easier. To date,
participating in this
In this EPA-sponsor
tor manufacturers I
money. The com|
energy-efficient re
EPA has announc
partnerships with
turers who are de\|
computers using a |
pollution.
rapid pace. Environmental protection is
alreadya$100billionindustry. A1982
EPA-commissioned study projects that
revenues in the air pollution control in-
dustry will jump by $4 billion to $6
billion annually in the next three years,
and by $7 billion to $9 billion annually
in the following five years for a cumula-
are likely as the demand created by the I
CAAA ripples through the economyl
and affects many industries and com-1
panics that are not always consideredl
to be a direct part of the air pollution]
control industry.
Growth in the environmental in-|
dustry means new jobs. These include!
-------
EPA Office of Air and Radiation
June 1993 Page 7
both high-skill/high-wage and me-
dium skill/medium-wage opportuni-
ties. Infact,theEPA-commissioned
study shows that increased demand
for employees in air pollution equip-
ment manufacturing, on-site construc-
nities can help preserve jobs that other-
wise would have been lost as the defense
and other industries "downsize." Compa-
nies with technologicalexpertise and large,
skilled workforces are well positioned to
make this type of strategic shift.
Itate the Clean Air Marketplace
n invites companies to
iting, thereby reducing
:ing pollution. Compa-
:ment to EPA to install
oughout their facilities.
a variety of technical
3 make the changeover
: 700 companies are
im.
The National Environmental Technology Applica-
tion Corporation is a non-profit organization dedi-
cated to accelerating the development and use
of environmental technologies. NETAC estab-
lishes cooperative agreements, sponsors semi-
nars, and develops databases on environmental
technologies and products. NETAC received a
start-up grant from EPA and continues to access
EPA's information resources.
jst, a group of refrigera-
jontributed to a "pot" of
at develops the most
wins the entire pot.
formation of voluntary
ge computer manufac-
[ more energy-efficient
> that produces less air
The U.S.-Asia Environmental Partnership (US-
AEP), a coalition of American and Asian
businesses, governments and community
groups, set up with EPA participation, has
designed four programs to focus U.S. expertise
and resources on Asia's environmental and
energy problems. U.S. companies will benefit
from greater demand created for U.S. products
and services that can help address Asia's
environmental problems.
tion, design, and engineering alone
could create up to 300,000 new jobs.
The CAAA is not only creating
entirely new job opportunities in the
relatively new and growing environ-
mental industry, it is also creating
opportunities for firms that are retool-
ing for new markets. These opportu-
Air pollution control is a large and
growing international industry. TheOECD
estimates the global air pollution control
market at $30 billion today, and projects it
will grow to $42 billion by 2000. In the
next decade, growth is expected in several
key regions, including Asia and Eastern
Europe. U.S. companies compete against
the Japanese, and the Germans, and other
Europeans for a share of this market.
Technological innovation as a re-
sult of the CAAA translates into an ex-
port edge for these U.S. companies in
two ways. First, non-environmental
companies canbecome tougher interna-
tional competitors as they become
"smarter" inresponse to CAAA require-
ments. A leading expert on interna-
tional competitiveness, Michael Porter
of the Harvard Business School, notes
that, "Strict environmental regulations
do not inevitably hinder competitive ad-
vantage against foreign rivals; indeed,
they often enhance it. Tough standards
triggerinnovation and upgrading." Sec-
ond, in the air pollution control industry,
technical leadership paves the way for
export leadership.
In conclusion, we believe that the
CAAA presents great opportunities for
U.S. firms that directly or indirectly
serve the air pollution control market.
These opportunities dramatically illus-
trate the positive connection between
cleaning the environment and growing
the economy. EPA is working hard to
strengthen this connection by minimiz-
ing the cost of the regulations we de-
velop through the use of economic in-
centive approaches and by supporting
innovative technologies and exports.
RobertBrenner
-------
The Clean Air Marketplace
June 1993 Page 8
Competition
Frontpage 3
environmental effort and their eco-
nomic performance."
Atmost, astate'scleanairpolicy
is one of the least influential factors
affecting its economic growth and
development, dwarfed completely by
much more powerful domestic and
international economic influences.
The Meyerstudy concludes thatthere
is no empirical basis to arguments
advanced by opponents of clean air
rules thatstateswithstronger air qual-
ity programs are disadvantaged corn-
estimates are that the industry today
employs about 75,000 men and
women. Full implementation of the
CAAAcould add another 20,000jobs
per year, and maybe more, this de-
cade.
Who gets these economic ben-
efits? The U.S. EPA and the Institute
of Clean Air Companies (ICAC) are
co-sponsoring a study on the location
and types of jobs already being cre-
ated by implementation of Title IV of
the CAAA. The report will be re-
leased this Spring, but preliminary
data show that many regions of this
Dollars spent on air pollution cleanup are recycled
in the economy, creating thousands of new jobs in
diverse sectors.
pared to states that tolerate poorer air
quality.
Job Growth
Just as the costs of CAAA com-
pliance reach nearly every industry
and every American, so too do the
benefits. Achieving clean air goals
means improved public health and
environmental quality for us all. In
addition, dollars spent on air pollu-
tion cleanup are recycled in the
economy, creating thousands of new
jobs in diverse sectors.
The size of the U.S. air pollution
prevention and control industry (sta-
tionary and mobile) is difficult to
estimate because of company diver-
sification and the absence of a stan-
dard industrial classification. Recent
country will enj oy growth in a variety
of occupations, including architec-
ture, engineering, and construction.
Jobs will also be created for Ameri-
cans working with basic primary
materials, control equipmentand pro-
cesses, and auxiliary equipment (e.g.,
pumps, valves, fans, computers, moni-
tors), among others.
In a very real sense, the regulated
industry benefits, too. The produc-
tion of pollution usually indicates in-
efficiency in a manufacturing or pro-
duction process. To the extent clean
air rules stimulate new technological
and management devices to avoid
wasteful practices — which often
means preventing pollution in the
first place — the regulated industry
itself becomes more competitive.
In addition, market-based clean
air rules (long supported by ICAC)
give a monetary value to pollution
reductions, which can be traded and
increase a firm's revenues. The mar-
kets for air pollution control equip-
ment and services not only work, but
they reflect capitalism with a ven-
geance, red in tooth and claw, where
only the fittest survive. For users of
air pollution controls, this competi-
tion has yielded dramatic price reduc-
tions andperformanceenhancements.
rprdctefefe'-wil Jikely pow-to
$300 billion a year by the end of this
decade, offering unparalleled oppor-
tunities for U.S. industry. Even with
local equipment manufacturing, fully
60 percent of revenues from an off-
shore project can flow back to the
U.S., thereby creating engineering,
management, and other American
jobs.
Studies by ICAC and others dem-
onstrate that the best way to assist the
U.S. air pollution control industry in
overseas competition is to foster a
strong, domestic airpollution control
program.
In areas where U.S. clean air
policy has led the world, as in the
mobile source area, U.S. environmen-
tal products companies have com-
peted well internationally. But in ar-
eas where foreign countries first im-
posed strict pollution control rules,
See IMPLEMENTATION, page 11
-------
EPA Office of Air and Radiation
June 1993 Page 9
Toxics
From page 4
allowing more cost-effective use of
abatement equipment.
The aerospace industry offers sev-
eral examples of innovation. Gen-
eral Dynamics Corporation's Fort
Worth Division has been working on
the problem of wipe solvents that are
used extensively in the aircraft indus-
try. Wipe solvents account for ap-
proximately 50 percent of all HAPs
emitted at aircraft manufacturing
plants. A new solvent blend has been
developed to replace high-VOC and
CFC solvents used by the industry.
The new blend cleans more effec-
tively, contains fewer VOCs than the
solvent originally required by the
military specification, has low toxic-
ity, and is preferred by workers. This
new solvent blend, coupled with im-
proved housekeeping procedures
(e.g., placing solvent-laden wipe
f~^~*'
clothes in Sealed containers), will re-
portedly rectt^cej?l~|>ercent of the
VOCs j^dOp^e^t of HAPs emis-
sioliiriromihis activity'."
USAffi rateTa-eiiiJies have
^^s
nearly eliminated all
outer surface of their^airclfaft.
small portion^flhe noj^elftie, tail
ruddejvancl duafeiraiture portions of
thetaselflg^where stripe decals will
not conform to the surface without
buckling, are painted. Decals are
used for the majority of the stripes on
the side of the fuselage, as well as for
all numbering, lettering, and logos.
The elimination of exterior aircraft
coatings reduces emissions of VOCs
and HAPs in three ways: (1) solvent
cleaning of the aircraft exterior prior
to polishing is not required; (2) prim-
ing and top coating operations are
eliminated; and (3) paint removal
operations, which normally require
application of methylene chloride, are
eliminated.
Hughes Aircraft Company,
with assistance and encouragement
from the South Coast Air Quality
Management District, has been de-
veloping methods of reducing emis-
sions from the aerospace and elec-
tronics industry. This coordinated
effort includes an advisory panel with
members from the regulatory agency,
the manufacturer, the client (Depart-
ment of Defense), and academia. The
purpose is to find solutions to air
pollution problems that are accept-
able to all affected parties. The re-
sults so far include development of
computer software that helps users to
identify more environmentally
friendly solvents, low solvent coat-
ings to replace existing coatings, more
cost-effectiye-pjunt spray guns to re-
mt of coating used, and
Iteraati^jcleaners and less-pollut-
lanu
~~~. . „. . ^
the aerospace industry includeihe
use of powder coatings for missiles
by Hughes Aircraft Company in Tuc-
son and die development of die SA-
FARI aircraft maintenance system by
Engineering Incorporated in Hamp-
ton, Virginia. The use of powder
coatings virtually eliminates die emis-
sion of VOCs and HAPs associated
with conventional liquid spray paint-
ing processes. Powder coatings may
also improve the quality of the final
finish and eliminate the need for mul-
tiple and repetitive coating applica-
tions.
The SAFARI, a totally enclosed
robotic system, can be used to paint,
wash, weld, drill, and buff aircraft.
Emissions are vented to an incinera-
tor. SAFARI is adaptable to handle
any large system, including locomo-
tives, trucks, and ships. This system
provides better containment and con-
trol of all emissions from mainte-
nance activities.
Other new technologies are be-
ing promoted by the regulatory envi-
ronment in both the United States and
Europe. One example is continuous
rotor concentrator technology, which
offers a method of treating gas streams
characterized by high flow/low or-
ganic concentrations. These systems
concentrate the dilute high-volume
flow, solvent-laden air stream (less
than 300 ppm) into a low-volume
stream which may be oxidized or
recovered by condensation. Through
the use of synthetic activated carbon
or a hydrophobic zeolite as the sor-
bent, air streams with high boiling
point solvents, previously known to
be resistant to adsorption, may be
treated. The advantages of specialty
hydrophobic zeolite include its low
fiammability and its adsorption capa-
bility for low concentration, humid
organic air streams. Another example
of innovative technology is the use
of synthetic polymeric beads in place
of activated carbon in fluidized bed
See TECHNOLOGY, page 11
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The Clean Air Marketplace
June 1993 Page 10
SCAQMD
FrompageS
ket In some cases, these advanced
technologies resultin better products
and/or reduced operating costs. Sec-
ond, because many of these new tech-
nologies and cleaner-burning fuels
come from firms residing in Southern
California, they generate economic
opportunities for the region through
themanufactureandsaleoftheselower-
emitting technologies to other parts of
thecountry and the world. Thepaceof
changeis swift Air pollution controls
and clean fuels that did not exist five
years ago arenow enteringcommercial
development
The recent national economic
downturn, the effects of which are
continuing to be felt here in Southern
California, enhanced our awareness
of another truism: the economy and
the environment are inextricably
linked. Public support for a cleaner
environment is at its highest levels
during periods when the economy is
healthy, but at its lowest levels when
the economy is weak. Encouraging
public support for technologies re-
lated to environmental improvement
is difficult during a recession, and
requires creative responses fromboth
industry and government agencies in
order to continue to engender such
support. The SCAQMD has metthis
challenge resourcefully by creating
an office of Economic Development
and Business Retention. This office
has two main objectives: (l)to facili-
tate the commercialization of new
low-emitting technologies and, as a
side benefit, createjobs, and (2) to help
retain existing businesses through in-
troduction of and conversion to more
efficient and less-polluting technolo-
gies.
An example of efforts by the Eco-
nomic Development office is the pur-
chase often new electric conversion
vehicles by the SCAQMD for dem-
onstration purposes. The purchase
agreement, including vehicle specifi-
operation to Mexico. Through the
joint efforts of these agencies, the
company was introduced to new
lower-emitting coatings and more
efficient methods for applying them
to their products. The switch to these
new coatings allowed the company to
reconsolidate its manufacturing lines
without exceeding its emission limits
for the facility.
A valuable side benefit of this
The pace of change is swift. Air pollution controls and
clean fuels that did not exist five years ago are now
entering commercial development
cations, has been designed to attract
other interested agencies or compa-
nies to purchase additional electric-
powered vehicles to create a 100 ve-
hicle demonstration fleet. In this way,
the developer of this novel conver-
sion technology gains the capital
needed to move into commercial pro-
duction while the SCAQMD receives
afleetlarge enough tocompileneeded
data on this technology. Through our
alternative fuel vehiclelease program,
other interested parties can become
more familiar with battery-powered
vehicles on a short-term, no-cost
basis.
Another example involves ajoint
effort between the SCAQMD, the
California Commerce and Trade
Agency, and Southern California
Edison that has resulted in the return
of a wood furniture manufacturer that
had previously moved much of its
economic development effort is the
growing recognition of the SCAQMD
as a partner in California's efforts to
improve its economy. While the
SCAQMD is not backing away from
its mandate to achieve healthful air
quality before the federal deadlines,
we believe opportunities can be de-
veloped that will produce a symbiotic
effect upon the Southern California
economy.
We have now begun to explore
opportunities to build additional eco-
nomic considerations into SCAQMD
policymaking. For instance, itis pos-
sible to project population growth,
and therefore employment needs
within the manufacturing sector, for
the year 2010. It is also possible to
project the level of reduction of pol-
lutant emissions necessary to achieve
healthful air quality by the year 2010.
See OPPORTUNITY, page 11
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EPA Office of Air and Radiation
June 1993 Page 11
Technology
Frontpage 9
adsorption. These systems are report-
edly able to treat and recover organics
that have been known to polymerize
on activated carbon, fouling carbon
systems.
There are many examples of in-
novative solutions to air pollution
problems. Opportunity is knocking.
Those that can change and adapt to
today's needs will reap success.
Implementation
Frontpage 8
those countries' industries often domi-
nate the world market.
Currently, Japan and Germany
(and it's fellow European Commu-
nity member), have tighter emission
requirements than we do for indus-
trial sources of air pollution. These
countries also lead the world market
for stationary source control tech-
nologies. CAAAimplementationwill
help correctthis imbalance.
In addition, the governments of
foreign environmental products com-
panies often assume many of thecredit
and currency risks in offshore envi-
ronmental projects, and frequently
require that the countries to which
they offer foreign aid purchase envi-
ronmental products from their indus-
tries. The U.S. needs to adopt these
practices to ensure the U.S. environ-
mental industry's competitiveness.
Picking up the mantle of interna-
tional environmental leadership can
help achieveimportantforeignpolicy
goals, protect our global environment,
andhelptheU.S. economy. Given the
inevitability of a 21st century with a
greater premium on less wasteful,
cleaner industrial production, it
makes sense to aggressively clean air
now in order to maximize the U.S.
environmental products industry's
ability to compete globally and create
U.S. jobs.
Opportunity
Frontpage 10
Combining this information would
permit the development of air emis-
sions targets, expressed in terms of a
quantity of pollutant emissions per
day per employee. Under a market-
based approach in which each facility
has an annually decreasing emission
limit, future emissions reduction re-
quirements could be eliminated once
a company has achieved emissions
per employee lower than the 2010
target. This could produce incentives
for bothlower emissions andincreased
employment by encouraging the
growth of "clean" businesses in the
Los Angeles Basin. These "clean"
businesses are estimated to be able to
provide 500,000 new jobs by 2010 at
an additional emission increase of
only 5 tons per year. Inapreliminary
investigation of this thesis, we found
that anumber of manufacturing busi-
nesses are currently operating at emis-
sion-to-employee ratios below the
2010target.
If you are interested in additional
information relating to the District's
Technology Advancement office or
Economic Development and Busi-
ness Retention activities, please con-
tact Andy Abele (909-396-3250) or
NickNikkila(909-396-2660).
Browner
Frontpage 1
Our intended audience includes
top-level corporate managers, state
and local government leaders respon-
sible for both economic development
and air quality, and thebusiness press.
I hope that the news and perspectives
provided in this and future issues of
The Clean Air Marketplace prove
useful in broadening the debate about
the relationship between the environ-
ment and the economy.
More practically, we aim to help
companies on the "sell" side of the
clean air marketplace to understand
potential market niches for their
products, and help companies on the
"buy " side—those thatface clean air
compliance challenges—to keep up-
to-date on new technological devel-
opments that may help them meet
their obligations more cost-effec-
tively.
-------
EPA Office of Air and Radiation
June 1993
The
A periodic newsletter on
business opportunities created
by the Clean Air Act Amendments
FIRST ISSUE
&EPA
United States
Environmental Protection Agency
Office of Policy Analysis and Review
Office of Air and Radiation
Washington, DC 20460 ANR443
Official Business
Penalty for Private Use
$300
The Clean Air Marketplace is published by EPA's Office of Policy Analysis and Review, Office of Air and Radiation. Stephen Harper, Editor
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