United States • Canada
Air Quality Agreement
                      to
    Progress Report
2004

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American spelling is used
  throughout the 2004
    Progress Report.

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   United States • Canada
Air Quality Agreement
      Progress Report
        2004

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The International  Joint Commission Requests Your
Comments on This  Report

The International Joint Commission (DC) is responsible for inviting public comment
on the Air Quality Agreement Progress Reports and for providing a synthesis of the
comments to the governments to assist them in implementing the Agreement.
Comments on any aspect of the Agreement would be appreciated.

   •  Do you feel the Agreement has been successful?

   •  Are there other transboundary air quality issues that should be addressed
     throughout this Agreement?

   •  Are the progress reports useful?

Written comments on this report should be sent by February 28, 2005 to:
 Secretary, United States Section
 International Joint Commission
 1250 23rd Street, NW
 Suite 100
 Washington, DC 20440

 Fax: (202) 467-0746
 Email: commission@washington.ijc.org
Secretary, Canadian Section
International Joint Commission
234 Laurier Avenue, West
22nd Floor
Ottawa, Ontario KIP 6K6

Fax: (613) 993-5583
Email: commission@ottawa.ijc.org

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Contents
Introduction	ii


Section 1—Commitments	1

Acid Rain Annex	1
   Overview	1
   Progress on Canadian and U.S. Sulfur Dioxide Emission Reductions	1
   Progress on Canadian and U.S. Nitrogen Oxides Emission Reductions	3
   Emissions Monitoring	4
   Acid Deposition Monitoring, Modeling, Maps, and Trends	5
   Preventing Air Quality Deterioration and Protecting Visibility	6
   Consultation and Notification of Significant Transboundary Air Pollution	9

Ozone Annex	10
   Overview	10
   Key Commitments and Progress	10
   Anticipated  Additional Control Measures and Indicative Reductions	16
   Reporting PEMA Emissions	18
   Reporting Air Quality for All Relevant Monitors within 500 km of the Border between the
   United States and Canada	21
   Summary of Ozone Annex Review Meeting	23

Progress and  Updates on Ozone and Particulate Matter	24

Section 2—Related Air Quality Efforts	26

   New England Governors and Eastern Canadian Premiers	26
   U.S.-Canada Border Air Quality Strategy Pilot Projects	27

Section 3—Scientific and Technical Cooperation and Research	28

   Emission Inventories and Trends	28
   Air Quality Reporting and Mapping	30
   Transboundary Particulate Matter Science Assessment	33
   Health Effects	37
   Aquatic Effects Research and Monitoring	38
   Forest Effects	39

Conclusion	42
Appendix—United States-Canada Air Quality Committee	43

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ii    United States-Canada Air Quality Agreement—Progress Report 2004
 Introduction
   The 2004 Progress Report, prepared by the



 bilateral Air Quality Committee, is the seventh



 biennial report compiled under the 1991 United



 States-Canada Air Quality Agreement. While



 building upon previous progress reports, this report



 reviews key actions taken by the United States and



 Canada in the last two years to address transboundary air pollution under the



 Agreement. It also covers each country's progress in achieving the requirements of



 Annex 1—the Acid Rain Annex. In addition, this report specifically focuses on actions



 taken by each country to meet new requirements under Annex 3—the Ozone Annex.






   To prepare the 2004 Progress Report, the Air Quality Committee took into



 account public comments it received through the International Joint Commission  (IJC)



 regarding the 2002 Progress Report. (A summary  of nearly 40 comments received can



 be found on the IJC Web site at ). In addition, the report reflects decisions made at the June 2004 meeting



 in Canada to review progress in  implementing the Ozone Annex. In preparation  for the



 June meeting, in-country  stakeholder meetings were held in March and May 2004.






   Section 3 of this document addresses the joint report, Transboundary Transport,



 Trends in, and Analysis of Fine Inhalable Particles in the Transboundary Region.



 This technical report on paniculate matter is the product of a scientific collaboration



 between the United States and Canada and is being used for decisionmaking on future



 updates to the Air Quality Agreement. It is just one example of the ways in which both



 countries are working together to further address their common air quality  goals.

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Acid   Rain  Annex
Overview
      Since the Acid Rain Annex was developed as part of the
      original Air Quality Agreement in 1991—to address sul-
      fur dioxide (SC>2) and nitrogen oxides (NOX) emissions,
particularly from electric power generation, as well as visibility
protection,  preventing air quality deterioration in clean areas,
and emissions monitoring—the United States and Canada have
taken significant actions to address acid rain. Both countries
have established objectives for emission limitations or reductions, programs to implement
these objectives, as well as timetables for implementation.

Progress on Canadian  and  U.S. Sulfur Dioxide Emission
Reductions1
         CANADA
Canada has been very successful in reducing the
emissions of SO2, a principal cause of acid rain.2
In 2001, SO2 emissions in the seven easternmost
provinces, where elevated acid deposition
1 The SO2 commitments are listed in the United States-Canada Air Quality Agreement Annex 1: Specific Objectives Concerning Sulfur Dioxide and
 Nitrogen Oxides, Section 1. Sulfur Dioxide, Part A for the United States and Part B for Canada.
2 Sulfate deposition is the primary acidifying agent in eastern Canada and the United States. The relative importance of nitrogen deposition is
 expected to increase, however, as sulfur deposition decreases.

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        United States-Canada Air Quality Agreement—Progress Report 2004
   Figure 1. Canadian SO2 Emissions from
   Acid  Rain Sources* (1980-2001)
 5 -

4.5 -
 4 -

3.5 -
 3 -
2.5 -
 2 -
1.5 -
 1 -
0.5 -
                     National Emissions
                     Eastern Canada Emissions
                     National Cap
                     Eastern Canada Cap
     1980   1985   1990   1994

    * Total SO2 emissions

     Source: Environment Canada
                                             2001
 continues to damage sensitive ecosystems, were
 28 percent below the eastern Canada 2.3 million
 tonne3 cap, even though the cap expired in
 December 1999. Canada's total SO2 emissions
 *
UNITED  STATES
have decreased about 50 percent since 1980, to
2.4 million tonnes in 2002, or 25 percent below
the national cap. (See Figure 1 to compare east-
ern Canada emissions to national emissions and
from 1980 to 2001.)
The Canada-wide Acid Rain Strategy for Post-
2000 serves as a framework for addressing the
country's acid rain problem. The long-term goal of
the Strategy is to achieve critical loads4 for acid
deposition for aquatic and terrestrial ecosystems.
As part of the Strategy, the provinces of Ontario,
Quebec, New Brunswick, and Nova Scotia all
committed to an additional 50 percent reduction
in their SO2 emissions beyond their 1985 Eastern
Canada Acid Rain Program targets by 2010.5
Although these provinces have not yet finalized
plans for implementing the new reductions, each
has taken significant steps towards identifying
measures for industrial sectors to achieve the
specified reductions.
 The United States has made substantial progress in
 reducing SO2 emissions, with the highest level of
 reduction being achieved by the electric power sec-
 tor. By 2003, four years into Phase II of the Acid
 Rain Program, electric power sources in the United
 States reduced SO2 emissions by 5.1 million tons,
 or 32 percent, compared to 1990 levels, and more
 than 38 percent compared to 1980 levels. (Figure 2
 shows the trend in SO2 emissions from 1980 to
 2003 for electric power sources.) Reductions
 from all source categories are expected to result
 in an SO2 emission reduction of 10  million tons
 annually from 1980 levels, with 8.5 million tons
 achieved by the electric power sector alone. In
 2003, 3,497 electric generating units were sub-
 ject to the SO2 provisions of the Acid Rain
 Program. (Annual fluctuations in the number of
 units participating in the program can result
 from retirements of some units and start-up of
 other units. For further details, visit
 .)
                                          Under the Acid Rain Program, the number of
                                          allowances allocated in a given year to a particu-
                                          lar unit is determined by provisions in the Clean
                                          Air Act. All allowances are tradable, allowing
                                          them to be bought or sold. Every year, however,
                                          each individual source must hold enough

                                              Figure 2.  U.S.  SO2 Emissions from Electric
                                              Power Generation (1980-2003)
                                        .2
                                        E
                                              I960 1985  1990  1995  1996  1997 1998 1999 2000  2001  2002  2003
                                                         Source: EPA
   One tonne is equal to 1.1 short tons.
   Critical loads are the maximum amount of acidifying deposition an ecosystem can tolerate in the long term without being damaged. Canada's goal
   for acid rain is to meet its critical loads.
   Ontario's target is currently 2015, although the province has proposed and is consulting on advancing the timeline to 2010. Nova Scotia's forecast
   of 94.5 kilotonnes by 2010 is a reduction target from existing sources and is not meant to be a cap.

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                                                      Section 1—Commitments—Acid Rain Annex
allowances to equal or exceed its annual emis-
sions. Allowances that are not used or sold in a
given year are carried over (or banked) for future
use. Banked emissions give sources the flexibility
to emit more in years when energy demand is
higher without affecting the total emissions cap
under the program. Thus, annual fluctuations in
SO2 emissions are expected.
In 2003, a  total of 9.5 million allowances were
allocated; however, sources actually emitted
10.6 million tons, decreasing total banked
allowances by 1.1 million tons. Over time,
affected sources will continue to use banked
allowances to help comply with the more
stringent Phase II requirements.
In 2003, national annual SO2 emissions under
the Acid Rain Program were 400,000 tons (4 per-
cent) higher than 2002 levels. Acid rain sources
increased their heat input by 1.2 percent com-
pared with 2002. One reason for this increase was
that nuclear generation was down 2 percent in
    2003, for the first time since 1998. More impor-
    tantly, the price of natural gas rose by 55 percent
    in 2003, which resulted in approximately a 9 per-
    cent decline in natural gas generation. Sources
    were forced to use other types of generation to
    meet electricity demand, and that need was pri-
    marily filled by coal-fired and oil-fired generation.
    Despite the increase in emissions from 2002 lev-
    els,  emissions under the Acid Rain Program were
    lower than 2000 levels and substantially lower
    than 1990 levels.
    In addition to the electric power generation sec-
    tor,  other sources achieved reductions in SO2
    emissions, including smelters and sulfuric acid
    manufacturing plants. The use of cleaner fuels in
    residential and commercial burners also con-
    tributed to the nearly 41 percent decline of SO2
    emissions from all sources, compared to the 1980
    level of 25.9 million tons. (For more details, visit
    the  National Emission Inventory at
    .)
Progress on  Canadian  and  U.S.  Nitrogen  Oxides
Emission  Reductions6
         CANADA
Though Canada has surpassed its NOX emis-
sion reductions target at power plants, major
combustion sources, and metal smelting oper-
ations by 100,000 tonnes below the forecast
level of 970,000' tonnes, the country is con-
tinuing to develop programs to further reduce
NOX emissions nationwide (see Section 2). In
fact, the provinces and federal government are
working together to achieve multi-pollutant
emission reductions for pollutants contribut-
ing to particulate matter (PM) and ozone for
key industrial sectors. Analytical studies have
characterized pollutants that chemically react
to form PM and ozone (including NOX). In
addition, a range of emission control options,
including measures and actions to reduce
NOX emissions, were identified for several
sectors contributing significantly to emissions
of PM and ozone precursors. These options
should be useful to assist jurisdictions in iden-
tifying best available technologies (BAT) and
developing plans to meet the Canada-wide
Standards for PM and ozone by 2010.
In addition to the efforts to reduce NOX emis-
sions from stationary sources such as indus-
tries, Canada's agenda to reduce the largest
source of NOX emissions—from vehicles and
fuels—is aggressive. Details for implementing
this agenda can be found in the ozone section
of this report, under "Key Commitments and
Progress" on page 10.
5  The NOX commitments are listed in the United States-Canada Air Quality Agreement Annex 1: Specific Objectives Concerning Sulfur
  Dioxide and Nitrogen Oxides, Section 2. Nitrogen Oxides, Part A for the United States and Part B for Canada.
1  The 970,000 tonnes is forecast for 2005 in the NOx/VOC Emission Forecast 90-B in the 1990 NOx/VOC Management Plan. Historical
  emissions and projections are subject to change as methodologies improve for estimating and forecasting emissions.

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      United States-Canada Air Quality Agreement—Progress Report 2004
*
          UNITED STATES
Coal-fired electric utility units affected by the
NOX component of the Acid Rain Program con-
tinue to meet and exceed the annual 2 million
ton reduction goal from what emission levels
would have been without the program, set by
Title IV of the 1990 Clean Air Act Amend-
ments. In 2003, the 1,004 NOX program-
affected units reduced their combined NOX
emissions to 3.8 million tons. In addition, total
NOX emissions for all Acid Rain Program-
affected units were 4.2 million tons (see Figure
3 for NOX emissions from 1990 to 2003).


Emissions  Monitoring
          CANADA8
                                                      Figure 3. U.S.  NOX Emissions from Electric
                                                      Power Generation (1990-2003)
                                                                5.9
                                                                     6.0  6.0
                                                                              5.5
                                                                                   5.1
                                                                                       4.7
                                                                                            4.5
                                                                                                 4.2
                                                      1990  1995   1996  1997  1998  1999  2000  2001   2002  2003
                                                         NOX Program affected units
                                                         Title IV sources not affected by NO* Program
                                                      Source: EPA
Canada has met its commitments to estimate emis-
sions of NOX and SO2 from new electricity utility
units and existing electricity units greater than 25
megawatts  (MW) using a method of comparable
effectiveness to continuous emission monitoring
systems (GEMS) and to investigate the feasibility
of using GEMS by 1995.  In Canada, emissions
trading of SO2 and NOX is not currently a driver
for electronic data reporting and GEMS.  Currently,
Environment Canada is undertaking an update of
its 1993 guidelines for GEMS  ("Protocols and
Performance Specifications for Continuous
Monitoring of Gaseous Emissions from Thermal
Power Generation," Report EPS l/PG/7) based,
                                                   in part, on experience gained from the use of 40
                                                   CFR Part 75 specifications for GEMS in the
                                                   United States. Although GEMS and data report-
                                                   ing requirements for power plants and industrial
                                                   sources involved in emissions trading in the
                                                   United States are not fully mirrored in Canada, it
                                                   has been concluded that EPS l/PG/7-compliant
                                                   GEMS in Canada would meet Canadian monitor-
                                                   ing requirements for domestic purposes. However,
                                                   the feasibility of cross-border emissions trading is
                                                   now being examined and indications are that
                                                   certain enhancements of emissions monitoring in
                                                   Canada would be required, if there was cross-
                                                   border trading.
*
          UNITED  STATES9
Under the Acid Rain Program, affected units are
required to measure and record emissions using
GEMS or an approved alternative measurement
method and report emissions electronically. All of
the monitoring systems operate with a high
degree of reliability. In fact, the percent monitor
data availability (a measure of monitoring sys-
tems' reliability) for 2003 was 99 percent for coal-
fired units. Additionally, in 2003, new audit
                                                   capabilities were added, including software that
                                                   performs hourly checks to catch errors, miscalcu-
                                                   lations, and oversights in monitoring and report-
                                                   ing systems. These audits help ensure the
                                                   completeness, high quality, and integrity of emis-
                                                   sion data as well as highlight a number of poten-
                                                   tial "red flags" that require additional verification.
                                                   Accurate emissions monitoring remains the back-
                                                   bone of trading program integrity.
  The Canadian commitments are listed in the United States-Canada Air Quality Agreement, Annex 1: Specific Objectives Concerning Sulfur Dioxide
  and Nitrogen Oxides, Section 3, Compliance Monitoring, Part A and B. Utility Units and Other Major Stationary Sources, Subsection 2 and 3 for
  Canada and for both parties.
  The U.S. commitments are listed in the United States-Canada Air Quality Agreement Annex 1: Specific Objectives Concerning Sulfur Dioxide and
  Nitrogen Oxides, Section 3, Compliance Monitoring, Part A. Utility Units, Subsection 1 for the United States and 3 for both parties.

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                                                    Section 1—Commitments—Acid Rain Annex
Acid  Deposition  Monitoring,  Modeling,  Maps,  and  Trends
                                         10
Airborne pollutants are deposited on the earth's
surface by three processes: 1) wet deposition (rain
or snow); 2) dry deposition (particles and gases);
and 3) deposition by cloud water and fog. Wet
deposition is comparatively easy to measure using
precipitation gauges and is regularly used as the
reference measure for comparison with emissions.
Early 1990s sulfate and nitrate wet deposition data
are illustrated in Figures 4 and 6, to be compared
with 2002 data in Figures 5 and 7, to show trends.
Wet sulfate deposition measurements are correct-
ed for sea-salt, to derive non-sea-salt sulfate (nss
SO42'), at sites in proximity to oceans. Blank areas
on the maps indicate that measurement data were
 Figure 4. Average Wet Sulfate Deposition
 (1990-1994)
Figure 5. Annual Wet Sulfate Deposition
(2002)

  Figure 6. Average Wet Nitrate Deposition
  (1990-1994)
Figure 7. Annual Wet Nitrate Deposition
(2002)
Source: NAtChem (www.msc-smc.ec.gc.ca/natchem/index_e.html) and NADP (http://NADP.sws.uiuc.edu)
10 The commitments are listed in the United States-Canada Air Quality Agreement Article VI and Annex 2: Scientific and Technical Activities and
  Economic Research.

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insufficient for the creation of deposition con-
tours. Figures 4 and 6 are each five-year averages
for baseline comparisons, whereas Figures 5 and 7
are the most recent annual averages for which
data are available. Comparison of one year's data
with a five-year average might introduce a bias
due to specific weather conditions in 2002.
Wet sulfate deposition is greatest in eastern
North America, along an axis running from the
Mississippi River to the lower Great Lakes.
Decreasing deposition is evident in the Ohio
River basin and southern  Ontario and Quebec.
Sulfate deposition of more than 25 kg/ha/yr persists
south of Lake Erie; however, this amount is still a
significant reduction from the early 1990s, when
wet deposition in this area exceeded 30 kg/ha/yr.
The  pattern for wet nitrate deposition is centered
on the lower Great Lakes with an axis running
from southeastern Missouri towards the Gulf of
St. Lawrence. Comparison of 2002 data with the
average for 1990 through  1994 shows persistent
deposition.
Trends in wet deposition of sulfate and nitrate
correspond to changes in  SO2 and NOX emissions.
In Canada, wet and dry deposition components
are measured in the federal Canadian Air and
Precipitation Monitoring  Network (CAPMoN)
(www.msc-smc.ec.gc.ca/capmon). Some provin-
cial governments (e.g., British Columbia,
Alberta, Quebec, New Brunswick, Nova Scotia,
Newfoundland) and the Northwest Territories
support wet deposition sites. Recently a few addi-
tional sites in the more remote portions of
Canada have been added to CAPMoN to provide
more detailed deposition data.
The United States has three coordinated acid
deposition networks:
1)  The National Atmospheric Deposition
    Program/National Trends Network
    (NADP/NTN),  a collaboration of federal,
    state, and non-governmental organizations
    measuring deposition chemistry
    (http://nadp.sws.uiuc.edu).
2)  The NADP/Atmospheric Integrated Research
    Monitoring (AIRMoN) network (a subnet-
    work of NADP operated by the National
    Oceanic and Atmospheric Administration).
3)  The EPA/National Park Service Clean Air
    Status and Trends network (CASTNET),
    which provides dry deposition data
    (www.epa.gov/castnet).
Procedures for all U.S. and Canadian networks are
standardized and contribute to an integrated, con-
sistent  dataset, which is accessible to the public at
.
Techniques for estimating dry deposition based on
measurement data are undergoing steady improve-
ment, as there are indications that this contribu-
tion to total deposition might have been
underestimated  in the past.
Preventing Air Quality  Deterioration  and  Protecting Visibility11

In certain areas in the United States and Canada, many visitors are not able to see the spectacular vis-
tas they expect. During much of the year, a veil of white or brown haze hangs in the air, obstructing the
view. Most of this haze comes from air pollution, carried by the wind, often many hundreds of miles
from where it originated.
          CANADA
Pollution prevention, continuous improvement
(CI), and Keeping Clean Areas Clean (KCAC)
activities are all part of the Canada-wide
Standards to prevent the deterioration of air
quality and address the pollutants involved in vis-
ibility impairment. These activities are being
conducted in addition to achieving the standards
for PM and ozone by the 2010 target date. The
11 The commitments are listed in the United States-Canada Air Quality Agreement Annex 1: Specific Objectives Concerning Sulfur Dioxide and
 Nitrogen Oxides, Section 4. Prevention of Air Quality Deterioration and Visibility Protection, Part A for the United States and Part B for Canada.

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                                                      Section 1—Commitments—Acid Rain Annex
KCAC principle recognizes that polluting "up to
a limit" is not acceptable and that the best strate-
gy to avoid future problems is to keep clean areas
clean. CI applies to areas with ambient pollutant
levels below those of existing standards but still
above levels associated with observable health
effects. The CI framework encourages jurisdic-
tions to take remedial and preventive actions to
reduce emissions from anthropogenic sources to
the extent practicable. Jurisdictions are currently
developing a national guidance  document on
CI/KCAC, which is expected to be completed  in
late 2004.
Federal, provincial,  and territorial governments
are working with  stakeholders to establish imple-
mentation plans and programs for the Canada-
wide Standard for PM2 5 and ozone that apply
pollution prevention and best management prac-
tices. These practices could include ensuring that
new facilities and activities incorporate the best
available economically feasible technology
(BAEFT) to reduce PM and ozone levels and
reviewing new activities that might contribute  to
PM and ozone level increases.
One of the largest contributors from stationary
sources is the electric power sector. Therefore, in
January 2003, the government of Canada set out
more stringent emission targets  for key air pollu-
tants from new fossil fuel power plants in "New
Source Emission Guidelines for  Thermal
                                       Electricity Generation" issued under the
                                       Canadian Environmental Protection Act (CEPA)
                                       of 1999. These guidelines are intended to provide
                                       national emission standards for application by the
                                       provinces to new coal-, oil-, and gas-fired, steam-
                                       electric power plants. The new guidelines include
                                       revised emission limits for SO9, NO , and PM,
                                                                   /'    X'
                                       consistent with the performance capability of cur-
                                       rent BAEFTs. In particular, the new emission lim-
                                       its align with U.S. standards and best available
                                       control technology (BACT) determinations.
*
UNITED STATES
The U.S. Prevention of Significant Deterioration
(PSD) program protects public health and the
environment from adverse effects that could occur
from the addition of new sources of air pollution.
It also ensures  that air quality in many areas of the
country remains better than levels mandated by
the National Ambient Air Quality Standards
(NAAQS). The program preserves and protects
air quality in Class I areas by assessing impacts on
visibility before construction permits are issued.
Class I areas are national parks and wilderness
areas such as the Grand Canyon, Yosemite, and
the Great Smokies. The Regional Haze Program
requires states  to develop plans to improve
                                       visibility conditions at Class I areas with the goal
                                       of restoring natural visibility conditions in about
                                       60 years. The first set of plans is due in early 2008.
                                       SO2 and NOX gases are transformed in the atmos-
                                       phere into fine particles of sulfates and nitrates.
                                       Sulfate and nitrate particles scatter and absorb
                                       light, impairing visibility and contributing to
                                       haze. Sulfates are generally the largest contributor
                                       to visibility impairment in both the East and the
                                       West. The visual range under naturally occurring
                                       conditions without air pollution in the United
                                       States is approximately 45 to 90 miles (75 to 150
                                       km) in the East and  120 to 180 miles (200 to 300
                                       km) in the West.

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 8    United States-Canada Air Quality Agreement—Progress Report 2004
Data from the IMPROVE (Interagency
Monitoring of Protected Visual Environments)
network indicate little change in visibility during
the past decade. (See Figure 8 for the annual
average standard visual range.) The level of visi-
bility impairment on the worst visibility days in
the West is similar to the levels seen on the best
visibility days in the East. In 2001, the mean
visual range for the worst days in the East was
only 18 miles (29 km), compared to 73 miles
(117 km) for the best visibility. In the West, visi-
bility impairment for the worst days remained rel-
atively unchanged over the  10-year period, with
the mean visual range for 2001 (63 miles, or 103
km) nearly the same as the 1992 level (61 miles,
or 98 km). Although that 10-year period showed
moderate improvements in some areas,  overall
visibility in the East is still significantly impaired
in national parks and wilderness areas, especially
on the haziest days.
To implement the requirements of the Regional
Haze Program, states work together in five
regional planning organizations (RPOs) to devel-
op strategies to address regional haze and visibili-
ty. The five RPOs are the Mid-Atlantic/
Northeast Visibility Union (MANE-VU), the
State and Tribal Association of the Southeast
(VISTAS), the Midwest RPO, the Central States
Regional Air Partnership (CENRAP), and the
Western Regional Air Partnership (WRAP). The
RPOs hold their own technical work group ses-
sions throughout the country to make decisions
on joint technical work, such as assessments of
international transport. The RPOs coordinate
technical information on emissions, ambient
monitoring, and air quality modeling activities.
The RPOs are  seeking ways for more involvement
by air quality agencies in Canada in their assess-
ment of pollutant formation and transport. (For
more information on the U.S. visibility program
and RPOs,  see  .)
On February 23-24, 2004, the International
Joint Commission's Air Quality Advisory Board
held a Workshop on Clean Areas and PSD in
Vancouver, British Columbia. The purpose of this
workshop was to review the current challenges
and possible joint opportunities for clean area
management policies in the transboundary
region. The workshop examined the PSD and
Regional Haze programs in the United States and
the KCAC provisions of the Canada-wide
Standards for ozone and PM.
             Figure 8. Annual Standard Visual Range (2002)
                 Source: National Park Service

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                                                    Section 1—Commitments—Acid Rain Annex
Consultation  and  Notification  of Significant Transboundary
Air  Pollution12
                 JOINT EFFORTS
The United States and Canada have ongoing
notification procedures, established in fall 1994,
to identify possible new sources and modifications
to existing sources of transboundary air pollution
within 62 miles (100 km) of the border.
Notifications can occur for new and existing
sources located outside of the 62 mile (100 km)
region if governments believe that there is the
potential for transboundary pollution. Since the
last progress report in 2002, the United States has
notified Canada of 11 additional sources, for a
total of 34. Canada has notified the United States
of 11 additional sources as well, for a total of 37.
Transboundary notification information is
available on the Internet sites of the two
governments at:
    Canada:
    www.ec.gc.ca/pdb/can_us/canus_applic_e.cfm
    United States:
    www.epa.gov/ttn/gei/uscadata.html
The United States and Canada report significant
continuing progress on joint discussions around
the Boundary Dam  Power Station (BDPS) near
Estevan, Saskatchewan, and Algoma Steel, Inc.
in Sault Ste. Marie, Ontario.
SaskPower, the operator of BDPS, has completed
the installation of electrostatic precipitators
(ESPs) on all units at the power station.  The
ambient air monitoring network was established
prior to installing the ESPs to track changes in air
quality before and after installation of this control
technology. The latest report of ambient air mon-
itoring data from the network through 2003
showed no exceedances of the applicable ambient
air quality standards at any of the sites.
U.S. and Canadian representatives of the federal,
state, and provincial governments, the Inter
Tribal Council in Michigan, and Algoma Steel
continue to operate a comprehensive ambient air
monitoring network in the United States and
Canada.  A report was prepared summarizing all
monitoring data collected in the binational area
between 2001 and 2003. The draft report was
issued in late fall of 2004 and included a brief
executive summary for public information and a
longer technical report.  The Canadian federal
and provincial agencies  have worked with the
steel company to achieve emission reductions.
Despite these abatement measures, citizens in
Michigan continue to express their concern  about
the pollution from this plant.
 The commitments listed in this section come from the United States-Canada Air Quality Agreement, Article V, Assessment, Notification,
 and Mitigation.

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       United States-Canada Air Quality Agreement—Progress Report 2004
Ozone  Annex
Overview

     The United States and Canada signed the
     Ozone Annex to the Air Quality Agreement
     in December 2000 (www.ec.gc.ca/air/
pdfs/can_usa_e.pdf). This Annex is expected to
significantly reduce NOX and volatile organic
compound (VOC) emissions—the precursor
pollutants to ground-level ozone, a major
component of smog. This Annex defines a
transboundary region in each country, known as
the Pollutant Emission  Management Area (PEMA) (see Figure 9). The states and provinces with-
in this region are the areas where emission reductions are most important for transboundary
ozone. In the United States, the region covers  18 states and the District of Columbia (approxi-
mately 40 percent of the U.S. population). In Canada, the region includes central and southern
Ontario and southern Quebec (more than 50 percent of Canada's population).
Key  Commitments and  Progress
         CANADA13
Vehicles, Engines, and Fuels
New stringent NO^ and VOC emission reduc-
tion standards for vehicles, including cars,
vans, light-duty trucks, offload vehicles, small
engines, and diesel engines, as well as fuels.
Canada is on track to implement all of its com-
mitments for vehicles, engines, and fuels.
Consistent with the Federal Agenda on Cleaner
Vehicles, Engines, and Fuels announced on
February 19, 2001, Environment Canada is
implementing regulations that will align
Canadian emission standards with the
U.S. Environmental Protection Agency (EPA)
rules for corresponding vehicles and engines.
The On-Road Vehicle and Engine Emission
Regulations were published in the Canada
Gazette, Part II, on January 1, 2003, and came
into effect on January 1, 2004, for light- and
heavy-duty vehicles and motorcycles. These regu-
lations replaced earlier vehicle emission regula-
tions under Transport Canada's Motor Vehicle
Safety Act. The first-ever regulations for off-road
engines, the Off-Road Small Spark-Ignition
Engine Emissions Regulations, were published on
J The commitments listed in this section are summarized from the Ozone Annex 3: Specific Objectives Concerning Ground Level Ozone Precursors,
 Part III—Specific Obligations, Section A for Canada.

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                                                      Section 1—Commitments—Ozone Annex
                                          11
November 19, 2003, and become effective in
2005. These two regulations, together with the
Sulfur in Diesel Fuel Regulations and current reg-
ulations and programs, will result in an estimated
73 percent reduction of NOX emissions from on-
road vehicles by 2020, compared with the contin-
uation of current emission controls.
A discussion draft of the planned Off-Road
Compression-Ignition Emission Regulations was
issued in July 2003, prior to a formal proposal
planned for 2004. These regulations will be fol-
lowed in 2004 and 2005 by proposals for recre-
ational marine engines (outboards and personal
watercraft), large spark-ignition engines (engines
above 19 kilowatts (kW)), and recreational vehi-
cles (such as snowmobiles and all-terrain vehicles).
Together, these regulations will cover all vehicle
and engine types used in mobile applications.
In the Ozone Annex, Canada committed to con-
tinue the application of its existing fuel regula-
tions that address sulfur in gasoline, for instance,
and to develop and implement a new regulation
to reduce the allowable level of sulfur in on-road
diesel fuel. These commitments have been met
with the publication of the Sulfur in Diesel Fuel
Regulations  in the Canada Gazette, Part II, on
July 31, 2002. The regulations limit  the level of
sulfur in diesel fuel used in on-road vehicles to a
maximum of 500 parts per million (ppm),
reduced to 15 ppm commencing in 2006. Beyond
the requirements in the Ozone Annex,


Figure 9. Ozone Annex Pollutant Emission
Management Area (PEMA)
Source: United States-Canada Air Quality Agreement, Ozone Annex
Environment Canada is preparing to propose reg-
ulations to control sulfur in diesel fuel for use in
off-road, rail, and marine engines aligning with
U.S. levels and timing (i.e., off-road: 500 ppm in
2007 and 15 ppm starting in 2010, and rail and
marine: 500  ppm in 2007 and 15 ppm in 2012).

Stationary Sources of NOX

Annual caps by 2007 of 39 kilotonnes (kt) of
NOX (as NO2j emissions from fossil-fuel power
plants  in the PEMA in central and southern
Ontario, and 5 kt of NO2  in the PEMA in
southern Quebec, aligned with U.S. standards.
Canada will  comply with its commitment to cap
NOX emissions from large fossil fuel-fired power
plants in the Ontario and Quebec portions of the
PEMA at 39 kt and  5 kt, respectively. Emissions
from power plants in the Ontario PEMA were
approximately 78 kt in 1990 and approximately
79 kt in 2002, but progress  is underway towards
reductions by 2007.  Preliminary emissions data for
2003 indicate that NOX (as NO2) emissions from
power plants in the Quebec PEMA are  above the
5 kt cap. This is mainly due to the increased hours
of operation  for the Tracy power plant. Quebec is
currently considering setting a specific regulatory
cap for the Tracy plant to help meet the 5 kt cap.

Proposed  National Guideline  for
Renewable Low-Impact Electricity

 Development of a proposed national (guideline
 for Renewable Low-Impact Electricity.
                 After extensive multi-stake-
                 holder consultation, a notice
                 of a draft Renewable Low-
                 Impact  Electricity (Green
                 Power)  Guideline was pub-
                 lished in the Canada Gazette,
                 Part I, in December 2001.
                 This guideline will provide
                 national guidance on environ-
                 mentally preferable electricity
                 products and generation in
                 Canada and will establish cer-
                 tification criteria for environ-
                 mental  labeling of qualifying
                 electricity products under
                 Canada's Environmental
                 Choice Program (ECP).

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In fact, these criteria are already being used for
certification of qualifying electricity products
under this program.
Canada intends to monitor market uptake of
these criteria as an indicator of improvement in
the environmental performance of electricity gen-
eration and distribution sectors. Publication of a
final guideline will be considered with other
options to maintain and enhance continuous
improvement in the environmental performance
of this industry.

Measures to Reduce VOCs
Reduction of VOC emissions through the devel-
opment of two regulations, one on dry cleaning
and another on solvent degreasing and the use of
VOC emission limits for new stationary sources.
The Tetrachloroethylene (Use in Dry Cleaning
and Reporting Requirements) Regulation became
law on February 27, 2003, and is expected to
result in a 70 percent reduction of tetrachloroeth-
ylene (PERC) releases at dry-cleaning facilities
from 1994 levels, by August 2005. The  Solvent
Degreasing Regulation went into effect on July
24, 2003, and is expected to result  in a  65 percent
reduction in consumption of trichloroethylene
(TCE) and PERC in solvent degreasing by 2007.
The Canadian Council of Ministers of the
Environment (CCME) has also completed and
endorsed 16 codes, guidelines, and standards, or
MOUs, for solvent-use subsectors. These docu-
ments are used to  provide guidance to jurisdic-
tions for reducing  VOC emissions from many
industrial/commercial sectors, including, paints,
coatings, printing, and storage tanks. In addition,
a number of CCME codes or guidelines, devel-
oped in the early to mid-1990s, are being
reviewed for updating.

Measures for NOX and VOC Emissions
to  Attain the Canada-wide Standard
for Ozone
Achievement of the Canada-wide Standard for
ozone in the PEMA by 2010,  by undertaking by
2005 and implementing between 2005 and
2010 measures to reduce NOx emissions based
on a multi-pollutant emission reduction
approach for key industrial sectors, and
measures to address VOC emissions from
solvents, paints, and consumer products.
After completing analysis reports for the six
industrial Multi-Pollutant Emission Reduction
Strategies (MERS) sectors (i.e., pulp and paper,
lumber and allied wood products, iron and steel,
base metals smelting, hot mix asphalt plants, and
concrete batch plants) as well as the electric
power generation sector, Canada was able to
determine that these six industrial  sectors are key
to achieving the Canada-wide Standards for PM
and ozone. The information was prepared in con-
sultation with provinces and stakeholders and is
publicly accessible from the CCME Web site
(www.ccme.ca/initiatives/standards.html). The
reports contain a description of each sector, emis-
sions released, performance standards, available
pollution prevention and control techniques, and
preliminary analyses of technically feasible emis-
sion reduction options. Provinces and territories
will use the reports in preparing their implemen-
tation plans.
To provide further information and support to
Canadian provinces and territories in developing
their implementation plans, the following activi-
ties are underway:
•   Iron and Steel: Environmental performance
    standards are being developed to address
    releases of PM, NOX, SO2, and VOCs from the
    significant process sources of the iron and steel
    sector. The existing CEPA Environmental
    Codes of Practice for integrated and non-inte-
    grated iron and steel mills will be updated
    through consultation with industry, non-gov-
    ernment stakeholders, and the provinces to
    incorporate environmental performance stan-
    dards for air pollutants, including precursors to
    PM and ozone, as well as total PM.
•   Base Metal Smelting and Refining: The
    development of a draft Environmental Code
    of Practice is under discussion in consultation
    with industry, non-governmental stakehold-
    ers, and provinces with particular emphasis
    on setting emission guidelines for SO2 and
    PM discharges.
•   Cement: The background information neces-
    sary to produce a foundation report for the
    cement manufacturing industry is under
    development for a planned national environ-
    mental code of practice.

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                                                      Section 1—Commitments—Ozone Annex

Canada published a "Federal Agenda for the
Reduction of VOC Emissions from Consumer
and Commercial Products" as a Notice of Intent
in the Canada Gazette, Part I, on March 27,
2004. This Agenda outlines actions to be taken
between 2004 and 2010 to reduce  emissions
from these sources and emphasizes alignment
with measures in the United States,  recognizing
the North American market for many of these
products.
In addition, the federal government has several
measures in place that should either directly or
indirectly result in VOC emission reductions in
the solvent use sector. These include  Guidelines
for Volatile Organic Compounds in Consumer
Products under CEPA published  in 2003.

Quebec  Portion  of the PEMA
Measures  to reduce NO^ and VOC emissions in
the Quebec portion  of the PEMA.
Quebec made progress in meeting its  Ozone
Annex commitments due to several regulatory
actions. The planned amendments  to Quebec's
Regulation Respecting the Quality  of the
Atmosphere (RRQA) contain stricter standards
aimed at reducing NOX emissions from new and

modified industrial and commercial boilers, in
accordance with CCME guidelines. In addition,
when burners on existing units must be replaced,
the replacements must be low-NOx burners.
With respect to VOC emissions, the amendments
to the RRQA are aimed at reducing emissions
from both the manufacture and application of
surface coatings, commercial and industrial print-
ing, dry cleaning, above-ground storage tanks,
petroleum refineries, and petrochemical plants.
Pursuant to its Regulation on Petroleum Products
(RPP), Quebec is currently applying provisions
aimed at reducing  gasoline volatility during the
summer months in the city of Montreal and the
Gatineau—Montreal section of the Windsor-
Quebec City corridor.
These amendments will address Stage 1
initiatives, including gasoline storage, transfer
depots, and service stations for both new and
existing installations in the Quebec portion of
the Windsor-Quebec City corridor. The city of
Montreal is currently enforcing regulatory pro-
visions concerning gasoline vapor recovery in
its territory.

Ontario Portion of the PEMA

Measures to reduce NO^ and VOC emissions in
the Ontario portion of the PEMA.
Ontario has fully met the Ozone Annex commit-
ments with the following regulations and guidelines:
•   The Ontario Drive Clean program (Ontario
    Environmental Protection Act Regulation
    361/98) was launched in the Greater Toronto
    Area and Hamilton on April 1, 1999. Drive
    Clean requires mandatory vehicle emissions
    inspection and maintenance to reduce emis-
    sions of NOX, carbon monoxide (CO), and
    VOCs. As of July 2002, the Drive Clean pro-
    gram has expanded to include southern
    Ontario's entire smog zone—an area that
    includes an estimated 5.5 million vehicles.
    The Drive Clean program's standards for light-
    duty vehicles were tightened by 11.5 percent
    (from the original limits) in 2003 and will be
    tightened an additional 11.5 percent in 2005.
    Ontario requires all diesel-powered heavy-
    duty trucks and buses to pass an annual emis-
    sions test and has imposed new standards

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       United States-Canada Air Quality Agreement—Progress Report 2004
   tightening opacity levels. (Opacity is a meas-
   ure of the degree to which a substance blocks
   the passage of light rays.)
   Ontario also requires that all heavy-duty
   diesel school buses meet the stricter of the
   two emission standards in place for other
   heavy-duty diesel vehicles each year: a 35
   percent opacity level on April 1, 2004, and a
   30 percent level on April 1, 2005.
   The Drive Clean's Smog Patrol conducts ran-
   dom roadside testing of suspected polluting
   vehicles and can issue tickets for violations.
   Beginning in July 2002,  the Smog Patrol
   increased its staff to 30 members to enhance
   enforcement. Since 1998, the Smog Patrol has
   conducted more than 29,000 vehicle inspec-
   tions and issued more than 5,250 tickets.
•  Stage 1 of the gasoline vapor recovery pro-
   gram was implemented in 1994, and the pro-
   gram continues today.
•  The volatility in gasoline regulation has been
   ongoing since 1991.
•  Mandatory training is required every five
   years for at least one full-time  employee of all
   dry cleaning establishments  in Ontario. A
   new training course for dry cleaners has  been
   successfully piloted by the Ministry of the
   Environment  (MOE) and is now widely
   available through Seneca College to dry
   cleaners across Ontario.
•  NOX  and SOX from new and modified station-
   ary combustion turbines are  limited under
   MOE Guideline A-5 through Certificates of
   Approval; monitoring and recording are
   required.
•  In March 2001, MOE Guideline A-9 (Boilers
   and Heaters) came into effect for NOX emis-
   sions limits. Large boilers and heaters (new
   and modified; greater than 10.5 gj/h fuel feed
   rate; oil- and gas-fired) are covered.
   Implementation through Certificates of
   Approval is expected to reduce NOX emis-
   sions by 29,000 tonnes by 2015.
•  As of May 2001, the Airborne Contaminant
   Discharge Monitoring and Reporting
   Regulation (Ontario Environmental Protection
   Act Regulation 127/01), which replaces
   Ontario's Electricity Generation Monitoring
   and Reporting Regulation (Ontario Regulation
   227/00), requires mandatory tracking and
   annual public reporting by facilities in Ontario
   if they emit significant amounts (above desig-
   nated limits) of more than 350 air pollutants.
   All reporting facilities are required to report
   annual and smog season (May 1 to September
   30) emissions each year by June 1. Emitters
   with equipment having a heat input greater
   than 73 MW must file  quarterly reports on
   SO2 and NOX within 60 days of the end of
   each quarter. The reports are made publicly
   available via Ontario's  new (June 2002)
   online emissions reporting registry, OnAIR,
   at .

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                                                       Section 1—Commitments—Ozone Annex

*
UNITED STATES

•   Implementation of the NO^ transport emis-
    sion reductions program, known as the NO^
    SIP (State Implementation Plan) call, in the
    PEMA states that are subject to the rule.
•   Implementation of existing U.S. vehicle,
    nonroad engine, and fuel quality rules to
    achieve both VOC and NO^ reductions.
•   Implementation of existing U.S. rules for
    control of emissions from stationary sources
    of hazardous air pollutants and control of
    VOCs from consumer and commercial prod-
    ucts, architectural coatings, and automobile
    repair coatings.
•   Implementation of 36 existing U.S. new
    source performance standards, to achieve
    VOC and NO^ reductions from new sources.

NOX and VOC Program Updates

•   NOX SIP Call (NOX Budget Trading
    Program). The NOX SIP call requires affected
    states to adopt and implement NOX control
    measures to ensure that seasonal NOX emis-
    sions do not exceed specified levels. As the
    result of court actions, EPA divided the NOX
    SIP Call into two  phases. Phase 1 accounts
    for approximately  90 percent of the emission
    reductions required by the NOX SIP call and
    had a compliance  date of May 31, 2004. The
    compliance date for the Phase 2 reductions is
    May  1, 2007.  Phase 1 will provide approxi-
    mately 900,000 tons of NOX emission reduc-
    tions in the SIP call region, which covers all
    of the states in the PEMA except for Maine,
    New  Hampshire, Vermont, and Wisconsin.
    All of the affected  states adopted a NOX cap
    and trade program  for large electric generating
    units and large industrial boilers and turbines
    as the major control strategy. All jurisdictions
    have  met the compliance deadline so far. Eight
    states and the District of Columbia voluntarily
    adopted a May 1, 2003, compliance date for
    Phase 1 and, thus,  are achieving NOX emission
                                           reductions one year earlier than required by
                                           the NOX SIP call. Further information on the
                                           NOX SIP call can be found at .
                                           Compliance and emission data for all NOX
                                           budget sources can be found at .

                                       •   Motor Vehicle Control Program. To address
                                           motor vehicle  emissions, the United States
                                           committed to implementing regulations for
                                           reformulated gasoline, controls and prohibi-
                                           tions on diesel fuel quality, light-duty vehi-
                                           cles, light-duty trucks, gasoline heavy-duty
                                           highway engines, and diesel heavy-duty high-
                                           way engines.
14 The Commitments listed in this section come from Ozone Annex 3 Specific Objectives Concerning Ground Level Ozone Precursors, Part III—
 Specific Obligations, Section B for the United States.
                                           EPA has fully phased in requirements for
                                           reformulated gasoline in nonattainment
                                           areas; diesel fuel quality (including sulfur) to
                                           500 ppm; standards for highway heavy-duty
                                           engines; and vehicle standards for light-duty
                                           cars and trucks, including on-board refueling
                                           for control of evaporative emissions.

                                       •   Nonroad Engine Standards. EPA has applied
                                           engine standards in all of the five nonroad
                                           engine categories identified in the Annex:
                                           aircraft, compression-ignition engines, spark-
                                           ignition engines, locomotives, and marine
                                           engines. In addition, EPA has promulgated
                                           more stringent (Phase 2) standards for

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       United States-Canada Air Quality Agreement—Progress Report 2004
    compression ignition engines and spark igni-
    tion engines. The Phase 2 standards are in
    effect for compression-ignition engines, and
    the Phase 2 standards for spark ignition
    engines will be fully phased in by 2007.
    New Source Standards. All of the 36 cate-
    gories of new source performance standards
    identified in the Ozone Annex for major new
    NCX and VOC sources are in effect.
•   VOC Controls on Smaller Sources. In 1998,
    EPA promulgated national rules for automo-
    bile repair coatings, consumer and commercial
    products, and architectural coatings. The com-
    pliance dates were January 1999, December
    1998, and September 1999, respectively. From
    a 1990 baseline, the consumer and commercial
    products and architectural coatings rules each
    are estimated to achieve a 20 percent reduc-
    tion in VOC emissions, and the automobile
    repair coatings rule is estimated to achieve a
    33 percent reduction in VOC emissions.
•   Controls on Hazardous Air Pollutants. EPA
    has promulgated regulations to control haz-
    ardous air pollutant emissions for all of the 40
    categories listed in the Ozone Annex that
    will reduce VOC emissions. EPA is currently
    implementing the majority of the regulations.
    Several regulations have future compliance
    dates, but all will be implemented prior to
    2010.
•   Nonroad Engines. The motor vehicle control
    program and nonroad engine regulations dis-
    cussed previously under NOX controls also
    provide reductions in VOC emissions.
Anticipated  Additional  Control  Measures  and
Indicative  Reductions15
This section describes additional control measures that each country anticipates implementing beyond
the specific obligations in the Ozone Annex. It also provides NOX and VOC emission reduction esti-
mates for the PEMA from implementation of both the specific obligations and the additional measures.
          CANADA
National Reductions
Achieving the Canada-wide Standard for ozone by
2010 is the shared responsibility of federal and
provincial/territorial governments. By 2005, all juris-
dictions will have published their implementation
plans outlining the measures they will take to
achieve the standard. The federal government pub-
lished its Interim Plan in 2001 and updated it in
2003.  It includes a mix of regulations, economic
instruments, and voluntary initiatives that are best
suited to implementation on a national scale.

Area-Specific Reductions
Ontario continues to make progress towards its
commitments under the Ozone Annex and has
committed to reducing NOX and VOC emissions
by 45 percent below 1990 levels  by 2015 under
the Anti-Smog Action Plan.
' The progress addressed in this section results from Annex 3 Specific Objectives Concerning Ground Level Ozone Precursors, Part IV—Anticipated
 Additional Control Measures and Indicative Reductions, Section A for Canada and Section B for the United States.

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                                                      Section 1—Commitments—Ozone Annex
                                                                                 17
Quebec proposes to modify its Regulation
Respecting the Quality of the Atmosphere in
order to reduce NOX emissions from new and
modified industrial and commercial boilers and to
reduce emissions of VOCs from both the manu-
facture and application of surface coatings, com-
mercial printing, dry cleaning, oil refineries,  and
petrochemical plants. It is also considering imple-
menting initiatives to reduce emissions from
light- and heavy-duty motor vehicles.

Quantitative Estimates

In the Ozone Annex, Parties provided NOX and
VOC emission estimates associated with applying
the control measures identified under Part III of
the Annex.  Using national emission data for
2000 and an improved methodology for emission
projections, the specific NOX  and VOC emission
reduction obligations in the Annex are now esti-
mated to reduce annual NO_  emissions in the
                                                 Figure 10. Canadian NOX and VOC
                                                 PEMA Emissions and Projections
                                         ,0   1.2
                                                        NOV
                                                                         VOC
                                                2010 includes specific obligations in Part III.
                                                Source: Environment Canada


                                       PEMA from 1990 levels by 39 percent by 2010,
                                       and annual VOC emissions in the PEMA from
                                       1990 levels by 35 percent by 2010 (see Figure 10).
*
UNITED STATES
National  Reductions

In December 1999, new Tier 2 tailpipe emissions
and low-sulfur fuel standards for light duty vehi-
cles were finalized. The emission standards are
being phased in beginning with the 2004 model
year, and the low-sulfur fuel standards beginning
in early 2004. These standards now apply equally
to all passenger cars and light-trucks, including
sport utility vehicles (SUVs), minivans, pick-up
trucks, and vans. They require passenger vehicles
to be 77 to 95 percent cleaner than those on the
road today and reduce the sulfur content of gaso-
line up to 90 percent. Further information on
these standards can be found at .
In December 2000, EPA finalized a comprehensive
program that regulates the highway heavy-duty
engine and its fuel as a single system. New emis-
sion  standards will take effect in 2004 and increase
in stringency in 2007. The program will reduce
emissions of NOX and nonmethane hydrocarbons
(NMHCs) by 2.6 million and 115,000 tons per
year  by 2030, respectively  (95 percent below cur-
rent  levels). Further information on this program
can be found at .
                                       With stringent controls in place for highway
                                       sources, nonroad engines powering farm and con-
                                       struction equipment contribute a higher fraction of
                                       the remaining inventory of pollutants. Since 1996,
                                       EPA has published a number of rules applying
                                       standards to engines in many nonroad categories.

                                       The Tier 3 nonroad standards were published in
                                       October 1998, and take effect between 2006 and
                                       2008, depending upon engine size. EPA has also
                                       published Tier 4 standards. These stringent stan-
                                       dards will achieve at least 90 percent reductions
                                       in NOX and PM, starting in 2011, through use of
                                       advanced exhaust aftertreatment technologies
                                       and ultra-low sulfur levels in nonroad diesel fuel.
                                       Further information on the standards can be
                                       found at .

                                       EPA published regulations for recreational vehi-
                                       cles in November 2002. The regulations cover
                                       snowmobiles, all-terrain vehicles, and off-high-
                                       way motorcycles. Phase-in of the emission reduc-
                                       tions begins in 2006 with full emission reductions
                                       by 2010. Further information on these rules can
                                       be found at .

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   18    United States-Canada Air Quality Agreement—Progress Report 2004
in
§
.2

UJ
       Figure 11. U.S. NOX and VOC
       PEMA Emissions and Projections
                               VOC
       2010 includes specific obligations in Part III; 2010 Plus
       also includes anticipated reductions from Tier 2, heavy-
       duty engines, and Tier 3 nonroad (Part III and IV).
       Source: EPA


  Area-Specific Reductions

  EPA is implementing NOX and VOC control
  measures in specific areas as required by applica-
  ble provisions of the Clean Air Act. The meas-
  ures include: NOX and VOC reasonably available
  control technology; marine vessel loading;
treatment storage and disposal facilities; munici-
pal solid waste landfills; onboard refueling; resi-
dential wood combustion; vehicle inspection/
maintenance; reformulated gasoline; and addi-
tional measures needed for attainment.

Quantitative NOX and VOC Emission
Reductions

In the Ozone Annex, the United States provided
NOX and VOC emission reduction estimates
associated with the application of the control
strategies identified under Part III and Part IV of
the Annex. EPA has updated these estimates
using national data sets that were completed in
October 2002. The new estimates show greater
VOC and NOX reductions by 2010 than original-
ly projected.
The specific emission reduction obligations (see
Figure 11, 2010), in conjunction with the antici-
pated national and area-specific reductions (see
Figure 11, 2010 Plus), are now estimated to
reduce annual NOX emissions in the PEMA from
1990 levels by 39 percent by 2010 and annual
VOC emissions in the PEMA from 1990 levels by
46 percent by 2010.
  Reporting  PEMA  Emissions16
                   JOINT COMMITMENT
  Provide information on all anthropogenic
  and all anthropogenic and biogenic VOC emis-
  sions within the PEMA from a year that is not
  more than two years prior to the year of the
  biennial progress report, including:
  •  Annual ozone season  (May 1 to September
     30) estimates for VOC and NO^ emissions
     by the sectors outlined in Part V, Section A
     of the Ozone Annex.
          and VOC five-year emission trends for the
     sectors listed above as well as total emissions.

  Canada and the United States have complied
  with emission reporting requirements in the
Ozone Annex. In Canada, the National Pollutant
Release Inventory (NPRI) list of substances was
expanded in 2002 to include precursors of
ground-level ozone and components of smog such
as NOX, VOCs, SOX, total PM, PM10, PM2 5, and
CO. Many facilities reported their 2002 emissions
to Environment Canada by June 1, 2003.  The
reported information by facility is now publicly
available on the Environment Canada Web site
(www.ec.gc.ca/ pdb/npri).

In 2003, the NPRI was further expanded to
require reporting of 60 additional VOC species to
support the requirements of both Canadian and
U.S. air quality models. All facilities that meet the
  16 The commitments listed in this section come from Annex 3: Specific Objectives Concerning Ground Level Ozone Precursors, Part V—Reporting,
   Section A.

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                                                      Section 1—Commitments—Ozone Annex

reporting requirements for these additional VOC
species were expected to report their 2003 emis-
sions to Environment Canada by June 1, 2004.
The compilation of the comprehensive 2002
Criteria Air Contaminants (CAC) emissions
inventory has been initiated in Canada and
should be completed during the latter part of
2004. It is expected that the 2002 emissions
inventory will become the new baseline for scien-
tific analyses, air quality modeling, and the devel-
opment of emission reduction strategies in both
Canada and the United States.
In the United States, emission data were obtained
from the  2002 National Emissions Inventory
(NEI). The NEI has been developed by EPA as a
Table 1. PEMA Emissions (2002)
                  comprehensive national emissions inventory cov-
                  ering all U.S. states for point sources, nonpoint
                  sources, on-road mobile sources, nonroad mobile
                  sources, and natural sources. The NEI includes
                  criteria pollutants and hazardous air pollutants.
                  For 2002, U.S. states were required to report their
                  criteria pollutant data from all of the source cate-
                  gories to EPA. The U.S. regulations require that
                  states report emissions from all sources once every
                  three years; the next comprehensive U.S. emis-
                  sions inventory will be for 2005.
                  Table 1 shows preliminary Canadian and U.S.
                  emissions in the PEMA in 2002 for NOX and
                  VOCs. Figures 12 and 13 show U.S. emission
                  trends in these areas for 1990-2002. The trend in
                  the PEMA states is similar to the U.S. national
                                       2002 Annual
                                    2002 Ozone Season
  Emission Category
(1000    (1000    (1000    (1000    (1000    (1000    (1000    (1000
Tons)   Tonnes)   Tons)   Tonnes)   Tons)   Tonnes)   Tons)   Tonnes)
  Canadian PEMA Region: Annual and Ozone Season Emissions
Industrial Emissions
Non-industrial Fuel Combustion
Electric Power Generation
On-road Transportation
Nonroad Transportation
Solvent Utilization
Other Anthropogenic Sources
Forest Fires
Biogenic Emissions
TOTALS
TOTALS:
without Forest Fires and Biogenics
U.S. PEMA States: Annual and
Industrial Emissions
Non-industrial Fuel Combustion
Electric Power Generation
On-road Transportation
Nonroad Transportation
Solvent Utilization
Other Anthropogenic Sources
Forest Fires
Biogenic Emissions
TOTALS
TOTALS:
without Forest Fires and Biogenics
109
45
87
501
243
0
2
—
9
996

987
Ozone
868
376
1,932
2,725
1,302
1
79
3
156
7,442

7,283
99
41
79
456
221
0
2
—
8
906

896
Season
787
341
1,753
2,472
1,181
1
72
3
142
6,752

6,607
170
143
1
173
172
330
81
—
902
1,972

1,070
154
130
1
157
157
300
74
—
818
1,791

970
45
9
33
228
117
0
1
—
6
439

433
41
8
30
207
106
0
1
—
5
398

393
71
1
0
74
83
136
27
—
675
1,067

392
64
1
0
67
76
124
25
—
612
969

354
Emissions
284
385
17
1,601
996
1,833
603
7
5,290
11,016

5,719
258
349
15
1,452
904
1,663
547
6
4,799
9,993

5,188
369
160
821
1,167
556
1
32
2
97
3,205

3,106
335
145
745
1,059
504
1
29
2
88
2,908

2,818
122
164
7
683
425
111
252
5
4,585
7,020

2,430
111
149
6
620
386
705
229
5
4,160
6,371

2,206
Source: EPA and Environment Canada (preliminary estimates)

-------
  20     United States-Canada Air Quality Agreement—Progress Report 2004
 trend. For NOX, most of the emission reductions
 come from on-road mobile sources and electric
 utilities. Over this same period, the reductions in
 VOC emissions are primarily from on-road
 mobile sources and solvent utilization. VOC
 emissions from non-industrial fuel combustion
 increased after 1998 and then returned to a
 downward trend.
                             Figures 14 and 15 show Canadian NOX and VOC
                             PEMA emission trends for 1990-2002. For NOX,
                             most of the reductions come from on-road mobile
                             and industrial sources. NOX emissions from elec-
                             tric power generation increased after 1999. Over
                             this same period, the reductions in VOC emis-
                             sions are primarily from on-road mobile and non-
                             industrial fuel combustion sources.
  Figure 12.  U.S. NOX Emission Trends in
  PEMA States (1990-2002)
                                     Figure 13.  U.S. VOC  Emission Trends in
                                     PEMA States (1990-2002)
1990  1991 1992  1993 1994 1995 1996 1997  1998 1999  2000 2001 2002
                                                              1990 1991 1992  1993 1994  1995 1996 1997 1998 1999 2000 2001  2002
       On-road transportation
      • Electric power generation
      • Nonroad transportation
•Industrial sources
•Non-industrial fuel combustion
•Other anthropogenic sources
 Source: EPA
 On-road transportation
 Solvent utilization
•Nonroad transportation
•Industrial sources
•Non-industrial fuel combustion
• Other anthropogenic sources
                                                               Source: EPA
 Figure 14. Canada NOX Emission Trends in
 PEMA Region (1990-2002)
                                    Figure 15. Canada VOC Emission Trends in
                                    PEMA Region (1990-2002)





1
<
1UU(
i
19



I

5-*-S«Z





, i. 1
90 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 20
^^^™ On-road transportation* ^^^™ Industrial sources
^^^ Electric power generation ^^^ Non-industrial fuel combustion
^^^ Nonroad transportation ^^^ Other anthropogenic sources
• Forest Fires — •— Solvent utilization
500

400
300

200
> 100

1
2



 * The change in on-road emissions between 2000-2002 reflects a reel a ssifi ca-
  tion of heavy-duty vehicles, not an increase in emissions. The impact of this
  reclassification on historical year emissions is being assessed and will be
  reflected in future updates.


Ł 350
Ł
-a 300
c
s

o
Ł

<
150
1







^V
^^



' t~TT





1990 1991 1992 1993 1994 1995 1996 1997



^^^™0n-road transportation ^^^
^^^^ Electric power generation ^^^^
^^^^ Nonroad transportation ^^^^
^^^^ Forest Fires




^ 	





400
Ul
300 Ł
|°
T3
C
fD
200 %

i Ł
:
100



1998 1999 2000 2001 2002
Industrial sources
Non-industrial fuel combustion
Other anthropogenic sources
Solvent utilization



 Source: Environment Canada
                                                              Source: Environment Canada

-------
                                                   Section 1—Commitments—Ozone Annex
                                        21
Reporting  Air Quality for All  Relevant Monitors
within  500 km  of the Border between the United
States  and Canada17
               JOINT COMMITMENT
Ambient Concentrations for Ozone, VOCs,
and NO^: Both the United States and Canada
have extensive networks to monitor ground-
level ozone and its precursors. Both govern-
ments prepare routine reports summarizing
measurement levels and trends. The latest
complete, quality-assured data set is for 2002.
•   10-Year Trends in Ambient
    Concentrations for Ozone, VOCs, and
    NOX: U.S. and Canadian data that met
    certain data completeness requirements
    were used to create the spatial interpola-
tion shown in Figure 16. However, only
sites within 500 km of the United
States-Canada border were displayed. For
ozone, these criteria required that each
annual fourth-highest daily maximum 8-
hour concentration be based on 75 per-
cent or more of all possible daily values
during the EPA-designated ozone moni-
toring season. Note that the highest val-
ues are generally near major urban areas
in the eastern border region, and the low-
est values are generally found in the West.
Figure 16. Ozone Concentrations (ppb) along the U.S.-Canada Border
(Average Annual Fourth Highest Daily Maximum 8-Hour Average Ozone, 2000-2002)
Source: Environment Canada-NAPS Database (www.etcentre.org/NAPS/) and EPA AIRS Database (www.epa.gov/air/data/index.html)
17 The data listed in this section result from requirements in Annex 3: Specific Objectives Concerning Ground Level Ozone Precursors, Part
 V—Reporting, Section C and D.

-------
   22    United States-Canada Air Quality Agreement—Progress Report 2004
Figure 17. Composite Trends: Annual
Fourth Highest Maximum 8-Hour Ozone
Concentration for Sites within 500 km of
the U.S.-Canada Border
Figure 18. Composite Trends: Annual Average
1-Hour NOX Concentration for Sites within 500
km of the U.S.-Canada Border
    1993  1994  1995  1996  1997 1998  1999  2000  2001  2002
                     Year
    (Note: 2002 data are not representative of current
    long-term trends)
    Source: EPA and Environment Canada
  Trends in ozone concentrations over time
  are presented in Figure 17, based on infor-
  mation from longer-term eastern sites with-
  in 500 km of the United States-Canada
  border. Ozone trends are nearly flat for the
  period, though there is a complex regional
  pattern.
  Figures 18 and 19 depict the trends in the
  ozone precursors NOX and VOCs in the
  eastern United States and Canada.  These
  measurements represent information from a
  more limited network of sites than is avail-
  able for ozone; for example, there are  no
  suitable NOX sites in the western United
  States within the border region. Available
  data show a decline in ambient levels of
  both pollutant families. The limited corre-
  spondence between composite ozone and
  precursor trends could reflect the regional
  complexity of the problem, as well as  net-
  work limitations.
   0
   1991  1992  1993  1994  1995 1996  1997 1998  1999  2000 2001  2002

                       Year

    Source:  EPA and Environment Canada
      Figure 19. Composite Trends: Annual
      Average 24-Hour VOC18 Concentration
      for Sites within 500 km of the
      U.S.-Canada Border
     1993   1994  1995  1996   1997   1998  1999   2000  2001   2002
                                                       1993  1994   1995  1996   1997  1998   1999  2000   2001  2002
                                                   Source: EPA and Environment Canada
  3 For the U.S., these values represent the sum of the VOC target species collected at Photochemical Assessment Monitoring Stations (PAMS)

-------
Summary of Ozone Annex Review  Meeting
Part VI of the Ozone Annex calls for the Parties
to assess progress in implementing the obligations
of the Ozone Annex in 2004. On June 11, 2004,
Canada hosted a bilateral meeting of the Air
Quality Committee in Quebec City. The purpose
of the meeting was to report on progress in imple-
menting the Ozone Annex in the United States
and Canada. Presentations at the meeting
demonstrated that both countries are meeting
specific obligations under the Annex.
Stakeholders representing environmental non-
governmental organizations (NGOs), health
NGOs, and industry joined states and representa-
tives of provinces and federal governments from
both countries  to review and comment on
progress. Some key points elucidated during the
meeting follow:
•   Within 500 km of the United States-Canada
    border, ozone levels were high in 2002 rela-
    tive  to a multi-year average, reflecting weath-
    er patterns of that year as well as emissions.
•   While composite site average ozone shows no
    real trend,  there is a decreasing  trend in con-
    centrations of the precursor emissions of NOX
    and VOCs.
•   Air quality and emission levels in 2002 will
    be used as a benchmark against which to
    track future progress.
•   Progress in implementing science and techni-
    cal commitments was described,  including
    obligations associated with data,  tools,
    methodologies, and joint studies  to assess
    transboundary flows.
•   Continued efforts in health and
    environmental effects tracking were
    described.
•   Stakeholders look for citizenry to be more
    engaged through greater outreach efforts.
Stakeholders requested a status meeting in 2006
to underscore the importance of continued
progress  toward the long-term objective of the
Annex, which  is to achieve the respective
health-based ozone air quality standards.

-------
       United States-Canada Air Quality Agreement—Progress Report 2004

Progress  and   Updates  on  Ozone  and
Participate  Matter
         CANADA
Canada-wide Standards for PM and Ozone: In
May 2000, Canada announced the development
of a Clean Air Agenda aimed at improving air
quality in Canada and reducing negative impacts
on human health and the environ-
ment.  The federal government's
action plan on PM and ozone is
one of a number of immediate and
long-term efforts developed under
the Clean Air Agenda.
In May 2001, the federal govern-
ment added PM10 to the List of
Toxic  Substances in Schedule 1 of
CEPA 1999. The government also
added the principal precursors to
PM10 (SO2, NOX, VOCs, and
ammonia (NH3)) and ozone and
its precursors  (NOX  and VOCs) to
Schedule 1 in July 2003. Future
risk management strategies aimed at reducing
PM10 and ozone will focus on reductions in the
precursors. In April 2001, the federal government
published its Interim Plan on Particulate Matter
and Ozone, which outlines the initial strategies
the government will pursue to reduce levels of
PM and ozone and meet the targets agreed to
under  the Canada-wide Standard process.
Specific areas identified for action in the Interim
Plan include transportation, petroleum fuels, and
*
         UNITED STATES
                                             stationary sources. The plan also provides for fur-
                                             ther scientific research and analysis of the smog
                                             problem, better ambient air monitoring and
                                             reporting, and public education.
                                                          In November 2003, the govern-
                                                          ment of Canada published the
                                                          report, Clean Air in Canada: 2003
                                                          Progress Report on Paniculate
                                                          Matter and Ozone. This report
                                                          provides information on actions
                                                          taken by the federal government
                                                          to reduce PM and ozone since
                                                          publication of the Interim Plan.
                                                          Specific elements discussed in the
                                                          2003 Progress Report include
                                                          improvements to monitoring net-
                                                          works, reductions in emissions
                                                          from vehicles and fuels, and
                                                          actions taken under CEPA 1999
                                             (see Section 1, Commitments, Ozone Annex in
                                             this report). Subsequent reports are planned for
                                             publication every two years.
                                             Furthermore, Canada expanded the NPRI in 2002
                                             to require industries to report their emissions of sev-
                                             eral criteria air contaminants, including PM, NOX,
                                             SO2, and VOCs. Under the Interim Plan, Canada is
                                             also implementing multi-pollutant emission reduc-
                                             tion strategies for key industrial sectors (see Section
                                             1, Commitments, Ozone Annex in this report).
Revised Ozone Standards and
Implementation
   199J7. EPA set 8-hour ozone standards to pro-
In
tect against longer exposure periods of concern for
human health and the environment.19 Following
years of litigation, the federal courts upheld EPA's
action in setting the NAAQS. Information on
the 8-hour ozone standard can be found at
.  On June 2, 2003, EPA
proposed a rule to implement the 8-hour ozone
standard.  The Agency finalized Phase 1 of the
19 The 8-hour ozone standards are set at a level of 0.08 ppm and are met when the 3-year average of the annual fourth highest daily maximum 8-
 hour concentration is less than 0.08 ppm.

-------
                     Section 1—Commitments—Progress and Updates on Ozone and Particulate Matter     25
implementation rule on April 15, 2004, and
expects to finalize Phase 2 in the fall of 2004.  On
April 15, 2004, EPA designated 126 areas as
nonattainment for the 8-hour ozone standard
based on three recent years of air quality data. A
significant number of these areas are located in
the eastern United States.  The nonattainment
areas are required to develop and implement con-
trol plans to reduce emissions of ozone-causing
pollution. The implementation rule provides for
attainment dates ranging from 2007 to 2021 based
on the severity of an area's  air quality problem.
Information on the 8-hour  ozone designations and
implementation rulemakings can be found at
 and
.

PM Standards and Implementation

In 1997, EPA issued standards for particulate mat-
ter smaller than 2.5 microns (PM25) to provide
further protection from the  adverse health effects
of particles. The annual standard is set at 15
ug/m3, and is met when the three-year average of
the annual arithmetic mean PM2 5 concentrations
does not exceed 15 ug/m3. The 24-hour standard is
set at 65 ug/m3 and is met when the three-year
average of the 98th percentile of 24-hour con-
centrations does not exceed 65 ug/m3.
Information on the PM2 5 standards can be found
at . EPA is currently
evaluating whether to propose standards for
coarse particles (particles with size between 2.5
and 10 microns).
States submitted their recommended designa-
tions for PM2 5 nonattainment areas to EPA by
February 15, 2004. EPA will finalize the desig-
nations by December 31, 2004. Preliminary
analyses of the data show that areas not meet-
ing the annual PM2 5 standard are likely to be
located primarily across a broad region of the
eastern United States and in California. Based
upon  the final EPA designations,  states will
have until 2008 to submit SIPs. Attainment of
the NAAQS is to be as expeditious as practica-
ble, but should be completed within five years
from the date of designation, January 2010. If a
state is unable to demonstrate attainment by
then and can justify an extension, EPA can
extend the attainment date up to another five
years, to January 2015.
ts>
o
   Clean Air Interstate  Rule
   On January 30, 2004, EPA proposed the Clean
   Air Interstate Rule, designed to dramatically
   reduce and permanently cap emissions of SO2 and
   NOX from major sources such as power plants.
   The proposed rule focuses on states whose power
   plant emissions are significantly contributing to
   fine particle and ozone pollution in other down-
   wind states in the eastern United States. The
   proposed rule would cover a total of 29 states and
   the District of Columbia. Under this rule, the
   proposed cap and trade program, if adopted by
   the states, would annually reduce power plant
   SO2 emissions by approximately 3.6 million tons
   by 2010, across states covered by the rule, with
   reductions ultimately reaching more than 5 mil-
   lion tons annually, when fully implemented.
   Annual NOX emission reductions also would be
   substantial, totalling about 1.5 million tons by
   2010 and 1.8 million tons by 2015. If not
   superceded by legislation, EPA expects to issue a
   final rule by the end of 2004. See Figure 20 for
   emission reductions at full implementation of the
   Clean Air Interstate Rule compared to other
   recent major EPA rules.
      Figure 20. Clean Air Interstate Rule and
      Other Major Air Pollution Rules since
      1990: Annual Emission Reductions at Full
      Implementation
     Source: EPA

-------
                                    Section 2:
                                                   Related   Air
                                         Quality  Efforts
New England  Governors and  Eastern Canadian Premiers
The activities of the New England Governors and
Eastern Canadian Premiers (NEG/ECP) continue
to provide an important regional coordinating
mechanism for addressing air quality issues,
including transboundary air pollution. Recent
efforts have focused on the following:
•  Continuation of the Air Quality Forecasting
   and Advisory program.
•  Additional meas-
   urements and
   analysis of ground-
   level ozone, PM2 5,
   and PM speciation
   measurements.
•  Aircraft-based
   measurements of
   mass transport of air
   pollutants during
   smog episodes.
•  Vertically resolved
   measurement of tropospheric ozone.
•  Local airshed application of the Air Quality
   Valuation model to better understand the
   health costs of air pollution in the region.
 •  Development of an integrated emission
   inventory database to support air quality
   model applications for eastern North
   America.
Following a survey of New England states and
eastern Canadian provinces in late 2002, and
with the assistance of the Northeast States for
Coordinated Air Use Management
(NESCAUM), NEG/ECP released a status report
entitled Clean Mobile Source Diesel Initiatives in the
Northeast States and Eastern Canadian Provinces at
the annual meeting of the governors and premiers
                     in September 2003.
                     This report led to the
                     adoption of a resolution
                     to address diesel emis-
                     sions, and a Diesel
                     Emissions Work Group
                     has since been estab-
                     lished to develop meas-
                     ures to control diesel
                     emissions in the region.
                     In addition, NEG/ECP
                     released a brochure
                     entitled Acid Rain
                     Partnership-Progress
Report 2003 at the September 2003 meeting. This
publication is intended to raise awareness of
efforts underway to address the regional impact of
acid rain.
An NEG/ECP environmental Web site is under
development to provide easy access to reports
and products for public education and outreach
purposes.

-------
U.S.-Canada  Border Air  Quality Strategy  Pilot  Projects
In January 2003, Minister David Anderson of
Canada and EPA Administrator Christine Todd
Whitman announced the Border Air Quality
Strategy (BAQS)—a commitment to build on the
transborder air quality improvements of the last
decade through future cooperative projects. Both
governments were charged with identifying appro-
priate pilot projects in consultation with states,
provinces, and local governments. In June 2003,
three pilot projects of interest to Canada and the
United States were announced, as described below.

U.S.-Canada  Emissions Trading
Feasibility Study

This national-level project will assess the feasibili-
ty of a cross-border cap and trade program for  sta-
tionary sources of SO2 and NOX emissions. This
trading feasibility study, conducted jointly by the
United States and Canada, will undertake founda-
tion analyses on emission cap and trade programs
in the United States, including reviewing current
arrangements in both countries regarding legal
design, emissions measurement, monitoring,
reporting and tracking, compliance and enforce-
ment, and public availability of information. The
study will identify where differences and gaps exist.
In early 2004, information sessions were held in  east-
ern and western Canada to inform governments,
industry, and stakeholders about the study and discuss
experiences under the U.S. cap and trade programs.
A U.S. stakeholder meeting on the project was also
held in Washington, DC, in May 2004. A final joint
report is expected to be completed in summer 2005.

Georgia Basin-Puget Sound
International  Airshed Strategy

This initiative, led by Environment
Canada-Pacific and Yukon Region and EPA
Region 10, will address regional transboundary air
quality issues. Other partners include representa-
tives of state, provincial, and regional govern-
ments, as well as the tribes and first nations and
the non-government organization community.
Activities in 2003 included:
•   Developing a methodology to quantify
    human health impacts from degraded air
    quality in the Georgia Basin-Puget Sound.
•   Analyzing assessment and notification proce-
    dures for significant new air emission sources
    (e.g., power plants).

•   Moving forward with the scientific airshed
    characterization (completed in June 2004).

•   Launching a Web site featuring the best air
    quality management practices in the region
    (www.pyr.ec.gc.ca/airshed/).

•   Completing a study on potential air quality man-
    agement models in the transboundary airshed.

•   Reaching agreement among all partner agen-
    cies on the format, approach, and develop-
    ment timeline for the Georgia Basin—Puget
    Sound International Airshed Strategy.

All of this work advances the goals of coordinat-
ing technical assessments, maintaining good air
quality in the Georgia Basin-Puget Sound airshed,
protecting ecosystems and human health, meeting
the continuous improvement goals of the Canada-
wide Standard, and improving visibility.


Great  Lakes  Basin  Airshed
Management Framework

This pilot project allows for a joint investigation of
local and sub-regional airshed management in a
contiguous urban area that crosses the border. It is
envisioned that air quality in the Great Lakes Basin
will be improved through cooperative regional
management of the airshed, with the involvement
of all levels of government, the public, the private
sector, aboriginals, and academia, with a view to
improved population and ecosystem health. The
project will focus on the ground-level ozone and
fine PM pollution problems that impact the cities
of Detroit and Windsor and surrounding areas.

A multi-stakeholder Great Lakes Basin Steering
Committee has been established to investigate
local transboundary air issues. The goal of this net-
work is to exchange information on environmental
management systems; identify opportunities, chal-
lenges, and obstacles in establishing a joint interna-
tional airshed management approach; and develop
a template for a coordinated airshed management
approach. Four working groups have been formed
to explore airshed characterization (emission
inventory, modeling, monitoring), policy, volun-
tary/early actions, and communications/outreach.

-------
                 Scientific   and   Technical
            ooperation   and   Research
Emission Inventories and Trends
               JOINT EFFORTS
The United States and Canada have updated and
improved their emission inventories and projec-
tions to reflect the latest information available.
These emission inventories were also processed for
U.S. and Canadian air quality models to support
the technical assessment of air quality problems.
In the fall of 2003, the two countries held a
workshop on Innovative Methods for Emission
Inventory Development under the auspices of
NARSTO.20 As a followup to the workshop, an
Emissions Inventory Assessment is underway that
will provide recommendations to improve the
quality, timeliness, comparability, and cost of
compiling emission inventories in North
America. A draft of the assessment report will be
available by late 2004.
Emissions data for both countries for 2002 are
presented in Figures 21, 22, 23, and 24. Figure 21
shows the distribution of emissions by source cat-
egory grouping for SO2, NOX, and VOCs.
•  SO2 emissions in the United States stem pri-
   marily from coal-fired combustion in the
   electric power sector; Canadian SO2 emis-
   sions stem mostly from coal-fired combustion
   in the industrial sector, with few emissions
   from the electric power sector, due to the
   large hydroelectric capacity in Canada.
•  The distribution of NOX emissions is very
   similar between the two countries, except
   that emissions from the electric power sector
   are proportionately higher in the United
   States, again reflecting more coal combustion
   in that sector.
•  VOC emissions are the most diverse of the
   emission profiles in each country. The most
   significant difference is that most VOCs come
   from the industrial sector in Canada. This is
   the result of the proportionately higher con-
   tribution of oil and gas production in Canada.
The emission trends, shown in Figures 22, 23,
and 24, for NOX, VOCs, and SO2 show the rela-
tive contribution in emissions over the
1990-2002 period. In the United States, the
major reductions in NOX emissions came from
 1 Formerly an acronym for "North American Research Strategy for Tropospheric Ozone," the term NARSTO has become simply a wordmark signify-
 ing this tri-national, public-private partnership, which addresses the issue of tropospheric pollution, including ozone and suspended particulate
 matter.

-------
                                           Section 3—Scientific and Technical Cooperation and  Research      29
              Figure 21. U.S. and  Canada National Emissions by Sector for Selected
              Pollutants (2002)
             U.S. Emissions-2002
                 Sulfur Dioxide
         Total: 15.8 million tons/year
               Nonroad^

              On-road -x \ U
.-Solvents
I
  Other

  Forest Fires
                                  Industrial
                                     Non-Industrial
             U.S. Emissions-2002
                Nitrogen Oxides
         Total: 21.2 million tons/year
          Nonroad
                               Industrial
           On-road
                                    Non-Industrial
              U.S. Emissions-2002
           Volatile Organic Compounds
           Total: 16.7 million tons/year
               Forest Fires-,
                        \	Industrial
             Other -^^            Non-Industrial
                             ^^^ Electric
               ^^                 ^ Generating Unit



             ^A
                      ^J ^        • On-road
       Solvents •
                      Nonroad
Source: EPA and Environment Canada
                                               Canadian Emissions-2002
                                                     Sulfur Dioxide
                                              Total: 2.7 million tons/year
                                                                                      Solvents
                                                                                      Other
           Nonroad -,   ulner
           _     ,   \   r Forest Fires
           On-road -\ \

   Electric
 Generating
     Unit   ,       •


          ^^
Non-Industrial W
                                               Canadian Emissions-2002
                                                    Nitrogen Oxides
                                              Total: 2.8 million tons/year
                                                                                                  Industrial
                                                    Forest Fires-

                                                        Other^

                                                      Solvents -|



                                                  d                     Ind








                                                                    *  Elec
                                                  road                   Ger
                                                Canadian Emissions-2002
                                               Volatile Organic Compounds
                                                Total: 2.9 million tons/year
                                                                                                 Non-Industrial
                                            Solvents
                                                                      Nonroad
                                                                         Industrial
                                                                                            Non-Industrial
                                                                                          -Electric
                                                                                  On-road   Generating Unit

-------
 30    United States-Canada Air Quality Agreement—Progress Report 2004
on-road mobile sources and electric power gen-
eration sources. For VOCs, the reductions came
from on-road mobile sources and solvent utiliza-
tion. For SO2, the reductions were from electric
power generation sources. For all three pollu-
tants during this time period, the United States
generated substantially more emissions than
Canada. At the same time, while both countries
have seen major reductions in SO2 emissions,
the United States has shown greater emission
reductions than Canada for VOCs and NO.
                    Figure 23. U.S.-Canada VOC Emissions
                                                                      Year
                                                    Source: EPA and Environment Canada
Figure 22.  U.S.-Canada NOX Emissions
                 Year
Source:  EPA and Environment Canada
                                           C   :=
                    Figure 24. U.S.-Canada SO2 Emissions
                                                                     Year
                                                    Source: EPA and Environment Canada
Air Quality  Reporting and  Mapping
                 JOINT EFFORTS
Each country is responsible
for ensuring calibration and
routine comparability of
ozone measurement data.
Since 2001, the United
States and Canada have
collaborated on contribut-
ing to the EPA-led
AIRNOW program
(www.epa.gov/airnow). This
Web site provides real-time
maps depicting ozone levels
on a continental  scale in
season (see Figure 25) and,
Figure 25. AIRNOW Map Illustrating Real-time
Concentrations of Ground-level Ozone
                                        1-Hour Average
                                        Peak Conc&fltration
                                              0-60 ppto
                                              bWJppt.
                                              HO -ag pp b
                                              10Q-11Qfip.ti
                                              11 1-124 |Jf;b
                                              1254 ppb
                                              D:il.;i no)
                                              available
                                Source:  EPA

-------
                                     Section 3—Scientific and Technical Cooperation and Research     31
since 2003, year-round particu-
late levels in the United States.
Canadian scientists have been
experimenting with algorithms
to improve the mapping effort,
using a combination of real-
time ozone data and informa-
tion from Canada's operational
air quality forecasting model,
CHRONOS (see Figure 26 for
an example).
          CANADA
                                   Figure 26. Analysis of Ground-level Ozone for
                                   July 31, 2003
                                  This analysis combines measurement data and predictions from the Canadian
                                  CHRONOS model to optimize the information presented.
                                  Source: Environment Canada
Environment Canada is expanding and refurbish-
ing federal and provincial networks of monitoring
stations across the country. Canada maintains two
national ambient air quality monitoring networks.
The National Air Pollution Surveillance (NAPS)
Network is a joint federal, provincial, territorial,
and municipal network established in 1969. It is
primarily an urban network, with more  than 240
air monitors at more than 136 sites. The federal
Canadian Air and
Precipitation Monitoring
Network (CAPMoN) is a
rural network with 23 air
monitoring stations in
Canada and one in the
United States. Some
provinces and municipali-
ties operate CAPMoN net-
works that integrate the
local NAPS sites.
The NAPS network gathers measurements on the
components of smog (i.e., ozone, PM, SO2, CO,
NOX, VOCs, ions, and metals). In 2002 and 2003,
Environment Canada invested in new equipment
for the NAPS network, including 18 new and
replacement ozone monitors, 15 new and replace-
ment NOX monitors, 34 continuous PM25 moni-
tors (Tapered Element Oscillating Microbalances
(TEOMs)), and three PM dichotomous  samplers.
In addition, Environment Canada started a chemi-
cal speciation sampling program in December 2002
to characterize PM. The agency also built two new
laboratories to support this work and equipped
them with an ion-coupled plasma-mass spec-
troscopy (ICP-MS) instrument for metals analysis
and an organic carbon/elemental carbon analyzer.
In 2002, Environment Canada refurbished the
ozone monitors in CAPMoN with new instru-
ments. The agency purchased and tested new
                    equipment for PM25, 10
                    mass measurements, and
                    PM composition measure-
                    ments. In addition,
                    Environment Canada start-
                    ed PM mass measurements
                    at one site and made prepa-
                    rations for PM equipment
                    installation at other net-
                    work sites.
                    At present, the ozone mon-
itors in CAPMoN are gathering data in real-time,
in support of the Air Quality Prediction Program,
and for distribution to the U.S. AIRNOW pro-
gram. PM25, 10 mass measurements, PM25 specia-
tion measurements, and VOC measurements are
being made at five  CAPMoN sites (within 500
km of the border). Nitrogen compounds (includ-
ing NOX) are being measured at two sites—the
Centre for Atmospheric Research, Egbert
(Ontario) and Kejimkujik (Nova Scotia).

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 32    United States-Canada Air Quality Agreement—Progress Report 2004
*
UNITED STATES
EPA's ambient air quality monitoring program is
carried out by state and local agencies and con-
sists of three major categories of monitoring sta-
tions that measure the criteria pollutants: State
and Local Air Monitoring Stations (SLAMS),
National Air Monitoring Stations (NAMS), and
Special Purpose Monitoring Stations (SPMS).
Additionally, a fourth category of monitoring sta-
tion, the Photochemical Assessment Monitoring
Stations (PAMS), which measures ozone precur-
sors (approximately 60 volatile hydrocarbons and
carbonyl), is required by the 1990 Clean Air Act
Amendments. Descriptions of these networks can
be found at 
-------
                                     Section 3—Scientific and Technical Cooperation and Research     33
Transboundary  Particulate Matter  Science  Assessment
As an outgrowth of the Joint Plan of
Action for Addressing Transboundary
Air Pollution, signed in 1997, the gov-
ernments of Canada and the United
States have completed a joint science
assessment report on PM. This docu-
ment represents the  first Canada-
United States science assessment of an
air pollution issue and is serving as a
basis for decisionmaking for possible
updates to the Air Quality Agreement.
Results from three binational workshops
between 1999 and 2003 identified sev-
eral key objectives for a Canada-United
States transboundary PM science assess-
ment. This section outlines these objec-
tives and findings, along with several
figures from the report, as examples of
supporting analyses.
•   Objective 1: Identify whether a
    fine PM problem exists in the bor-
    der region, based on current stan-
    dards.
•   Objective 2: Identify the extent of
    the problem.', if standards are
    exceeded, where, when, and by
    how much?
Recent air quality monitoring data indi-
cate that annual average  levels of PM2 5
are as high  as 18 ug/m3 in the north-
eastern United States, but are consis-
tently lower than 12 ug/m3 in the
mid-continental states (see Figure 27).
When Canadian hourly TEOM obser-
vations are  included, a more detailed
picture of ambient levels can be seen.
The 98th percentile  values for the years
2000 to 2002 are shown in Figure 28.
The northeastern United States is again
a region of high ambient PM levels,
with 98th percentile values in excess of
30 ug/m3  at many of the sites. Canadian
locations exhibit generally lower levels
of PM2 5, although concentrations
greater than 30 ug/m3 occur in several
regions of the country for the years
2000 to 2002, particularly in the
Windsor-Quebec City corridor.
Figure 27.  Mean Concentrations of PM2.5 at Canadian
Dichotomous and  U.S. FRM Monitors in the Border Region
(2000-2003)
                                  M9/m3
                                  < = 10
                                  10-< = 12
                                  12-< = 15
                                  15-< = 18

    •
 .»l
 *•.
                                            •.~t"''
                     I*iC4;
                       •• §,
..    ; •••    •    ~.  w
              -*X:
   ^:..
               _«*.
     *•
  (Note: Canadian sites are years 2000-2002; all sites do not include three years of data.)
Figure 28. 98th Percentile PM2 5 Concentrations at Canadian
TEOM and U.S. FRM Sites (2000-2002)
   i.
 •
                                  M9/m3
                                  <= 20
                                  20 - < 30
                                  30 - < 40
                                  40 - < 65
                                  >65
                                  indicates TEOM monitor
           *
       "''
                                   .

  (Note: Canadian sites do not all include three years of data.)
  Source: Figures adapted from "Transboundary Transport, Trends in and Analysis
  of Fine Inhalable Particles in the Transboundary Region: Science Assessment." A
  Report by the Canada-U.S. Air Quality Committee, Subcommittee 2: Scientific
  Cooperation. November 2004.

-------
 34     United States-Canada Air Quality Agreement—Progress Report 2004
•   Objective 3: Describe the PM
    issue in terms of geographic
    regions (e.g., West, Central,
    East).
Current ambient levels of PM2 5 in the
border regions exceed the standards set
for PM2 5, primarily in the eastern por-
tion of the border domain. Some sites
in the Georgia Basin-Puget Sound air-
shed have elevated PM2 5 levels (with
very few sites exceeding either standard
for the  time periods evaluated), but the
levels are generally lower than in the
East in Canada and the United States.
Urban concentrations of PM2 5 (Figure
29) are higher than rural sites (Figure
30) in all regions of both Canada and
the United States (note scale of
embedded pie charts).
•   Objective 4: Identify PM precur-
    sors of concern on a regional or
    sub-regional basis.
|PM|2 5 in the border region consists of,
in order of relative importance to annu-
al PM2 5 levels: organic/black carbon,
sulfate, nitrate, ammonium, soil dust,
and trace elements. Secondary particu-
late (i.e., ammonium, nitrate, and sul-
fate) plays a key role under episodic
conditions in Ontario. In the United
States-Canada border region, carbon
and sulfates are the dominant species  of
|PM|2 5 aerosols in spring, summer, and
fall. In the United States, nitrates are a
major species in the winter in the
Northeast, and carbon is a major
species  in the winter in the Northwest.
Anthropogenic emissions of SO2, NOX,
and ammonia are identified as PM pre-
cursors  of concern in the East and
Midwest United States. Comparison of
urban and rural speciation and levels
(Figures 29  and 30, noting difference in
scale) indicate important natural
sources of total carbonaceous material
(TCM), and also anthropogenic
sourccb, such as motor vehicles or sol-
vent usage. Forest fires are a signifi-
cant, though episodic, source of TCM.
Figure 29. Summary of Urban PM2.5 Speciation Data from EPA
and NAPS Speciation Networks (September 2001-August 2002)
 Size of circles plotted at
 each site indicates the
 average concentration
 for the period, in
 ug/m3. Adapted from
 Transboundary Participate
 Matter Science Assessment.
Figure 30.  Summary of Rural PM2.5 Speciation Data from
U.S. IMPROVE and Canadian Networks (September
2001-August 2002)
 Size of circles plotted at
 each site indicates the average
 concentration for the period, in
 ug/m3. Adapted from Transboundary
 Particulate Matter Science Assessment
Figure 31.  Source-receptor Analysis for Ambient
Contaminants Related to Coal-fired Emissions
        bMM t «H9«rf Qwme
Using measurements at receptor sites in Toronto and in the eastern United States, based
on air mass trajectories. The different particle constituents are indicated in different colors;
nested contours identify source regions with increasing probability. From Transboundary
Particulate Matter Science Assessment.
Source: Figures adapted from "Transboundary Transport, Trends in and Analysis of Fine
Inhalable Particles in the Transboundary Region:  Science Assessment." A Report by the
Canada-U.S. Air Quality Committee, Subcommittee 2: Scientific Cooperation. November 2004.

-------
Section 3—Scientific and Technical Cooperation and Research    35
            Figure 32. U.S.-Canada 1995-1996 SO2 Emissions
Emissions
•   Objective 5: Describe source regions of PM
    and its precursors in the context of geo-
    graphic regions (i.e., West, Central, East).
Emissions from the northeastern United States
and southern Canada have an impact on PM2 5
levels in many areas of the two countries,
including as far east as Nova Scotia and New
Brunswick, particularly influencing the top
25th percentile of PM25 concentrations in
these regions. Source-receptor analyses indicate
that several areas contribute to elevated PM
levels in eastern North America. These areas
include, but are not restricted to:
•   Air masses originating from a relatively
    large area from southeast Ohio to the west-
    ern part of Virginia and western Kentucky
    to central Tennessee, which  tended to
    result in relatively high PM2 5 concentra-
    tions over northeastern North America.
•   The Windsor-Quebec City Corridor.
•   The U.S. Midwest and Boston to
    Washington, B.C. corridor.
•   The Ohio River Valley.
•   Northern Alberta and Saskatchewan and
    central United States (e.g., Montana,
    North Dakota).
•   Vancouver/Seattle, Oregon,  and Northern
    California.
Figure 31  shows an example of the source
determination work, illustrating  a source-
receptor analysis for ambient contaminants
related to coal-fired plant emissions, using
measurements at Toronto and sites in the east-
ern United States. The study identifies a coher-
ent and plausible source region.
•   Objective 6: Describe emissions of PM
    precursors.
A common inventory of PM precursors SO2,
NOX, and NH3 was created based on shared
U.S. (1990 and 1996) and Canadian (1990 and
1995) emission information. Annual total
emissions are presented in Figures 32, 33, and
34.  Emissions of SO2 and NOX are concentrat-
ed in the industrial Midwest, northeastern
United States, and southern Ontario.
Emissions of NH3 are concentrated further west   SO2, NOX, and NH3, and their contributions to PM2,
in the central Midwest region. The emissions of   levels, vary seasonally.
        -
                  33. U.S.-Canada 1995-1996
           Figure 34. U.S.-Canada 1995-1996 NH3 Emissions
             200
             100
             so
             ID
             0


             I
             a
           Source: Figures adapted from "Transboundary Transport, Trends in and Analysis
           of Fine Inhalable Particles in the Transboundary Region: Science Assessment." A
           Report by the Canada-U.S. Air Quality Committee, Subcommittee 2: Scientific
           Cooperation. November 2004.

-------
 36     United States-Canada Air Quality Agreement—Progress Report 2004
•   Objective 7: Identify the effect of current
    and proposed emission reduction scenarios
    on fine PM levels in North America.
Projected PM25 reductions were estimated with
model scenarios using shared emission scenarios
for 2010 and 2020, which were developed based
on the common U.S.-Canada Inventory.  U.S.
work used the model, REMSAD, focusing on
annual levels, while the Canadian model,
AURAMS, was applied to a winter and a sum-
mer episode of high particulate levels.  U.S. and
Canadian controls that are expected to be
implemented were found to result in maximum
annual reductions of PM2 5 of 2.3 ug/m3 in 2020
(see Figure 35). The reductions vary temporally
and spatially, with larger reductions in the east-
ern portion of the REMSAD modeling domain.
Proposed additional SO2 and NOX emission
reductions should provide additional reductions
in ambient PM2 5 levels in eastern North
America. The observed PM25 reductions might
vary by season  and will depend strongly on
reductions in PM25 sulfate ion mass (Figure 36).
Figure 35. Anticipated Reductions in Annual PM2]5 Concentration in 2020
from Expected U.S. and Canadian Controls
                                                                                      Source: Figures
                                                                                      adapted from
                                                                                      "Transboundary
                                                                                      Transport, Trends in
                                                                                      and Analysis of Fine
                                                                                      Inhalable Particles in
                                                                                      the Transboundary
                                                                                      Region: Science
                                                                                      Assessment." A
                                                                                      Report by the Canada-
                                                                                      U.S. Air Quality
                                                                                      Committee,
                                                                                      Subcommittee 2:
                                                                                      Scientific Cooperation.
                                                                                      November 2004.
            Results were developed using the REMSAD model with a full year model run (1996 meteorology). From
            Transboundary Particulate Matter Science Assessment. For clarity, results over Atlantic Ocean are not shown.
Figure 36. Anticipated Reductions in PM2.5 Concentration, and  in Its Sulfate
Composition from Additional U.S. and Canadian Controls
  •KP
 Results were developed using the Canadian model AURAMS, based on an 11-day summer ozone episode (July 8-18, 1995, meteor-
 ology). From Transboundary Particulate Matter Science Assessment.

-------
                                      Section 3—Scientific and Technical Cooperation and Research     37
Health  Effects
Canada and the United States generally collabo-
rate on health effects research at the hands-on
working level. Individual researchers or research
groups share methodologies and datasets to
advance understanding of the nature and extent
of air pollution effects on human health. In this
framework, Health Canada completed health sci-
ence updates for PM2 5 and ozone in support of
the Canada-wide Standards process. As a result of
the pace of toxicological and epidemiological
research on these substances, the review consid-
ered progress in understanding health effects of
these pollutants. The updates to the health sci-
ence assessments for PM2 5 and ozone conclude
that the new evidence gathered from clinical,
toxicological, and epidemiological  studies contin-
ues to support the standards.
Health Canada, in collaboration with EPA officials,
initiated discussions for the development of possible
surveillance mechanisms to monitor health and air
pollution bilaterally. Health Canada hosted a bilat-
eral federal (Canada/United States)  science work-
shop in March 2003. The  Tracking Public Health
Impacts of Transboundary Air Pollution Workshop
presented  a suite of indicators to identify the health
impacts of investments resulting in long-term air
quality changes. Work towards the  development of
a valid air health indicator is ongoing.
Health effects of air pollution research  in the
United States has focused primarily on PM in
recent years. EPA has a well-established PM
health effects research program, consistent with
the recommendations of the National Research
Council's  Committee on Research  Priorities for
Airborne  Particulate Matter. Key findings of
recent PM health effects research were presented
in a draft  Criteria Document and in a draft Staff
Paper developed as part of EPA's regular review of
its NAAQS for PM.
The results of some recent research related to PM
health effects are provided below:
•   Recently published epidemiologic studies have
    continued to provide evidence linking serious
    health effects with exposure  to fine particles. Of
    particular note are the re-analysis and followup
    analyses completed using updated data from the
    American Cancer Society cohort that show
    long-term exposure to fine particles and sulfates
    (a fine particle component) to be associated
    with increased mortality from cardiovascular
    diseases. A full discussion of the new evidence
    is included in the Canadian and U.S. scientific
    review documents described previously.
•  New total respiratory deposition data were
   obtained from healthy adults for ultra-fine
   particles,  and an empirical formula was devel-
   oped to estimate the total deposition in vari-
   ous breathing conditions. The new empirical
   formula will be useful for improving  the
   health risk assessment process by relating
   exposure and activity information to the
   internal dose, which has a  direct relevance to
   the biological responses. Studies determined
   that as many as 10 times more particles are
   deposited in certain regions of the lungs in
   people with pulmonary disease, which might
   indicate that their increased susceptibility is
   due to receiving an increased dose.
•  Multiple hypotheses now exist describing the
   biological mechanisms by which very small
   concentrations of inhaled PM produce car-
   diovascular and pulmonary changes con-
   tributing to increased illness and death.
   Similarly, laboratory studies and animal mod-
   els that mimic human disease have stimulated
   several theories about how the physicochemi-
   cal properties of PM produce toxicity. No sin-
   gle attribute seems to exist that makes PM
   toxic, but size and certain chemical compo-
   nents (e.g., metals) appear to be involved.
   This finding is  supported by both laboratory
   and field evidence.

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 38     United States-Canada Air Quality Agreement—Progress Report 2004
Aquatic  Effects Research  and  Monitoring
Research and monitoring for aquatic effects from
air pollution involves numerous studies of water
chemistry trends and biological recovery coordinat-
ed within the international scientific community.
One such forum is the International Cooperative
Program on Assessment and Monitoring of
 '     '[      f
   • -itt
Acidification of Rivers and Lakes (www.niva.no/
ICP-waters/ICP_index.htm), established under the
Convention on Long-Range Transboundary Air
Pollution (LRTAP). As reported in the 2002
Progress Report, monitoring data show water chem-
istry improvements in response to steadily decreas-
ing emissions of sulfur oxides, but this improvement
is occurring in a complex pattern reflecting emis-
sions of other substances, different lake characteris-
tics, and climate interactions. Conspicuous
recovery is only seen in limited areas that formerly
had very high initial deposition levels.
These complex interactions are evaluated through
the application of dynamic models developed using
information from detailed  process  studies.
Generalization to regional levels requires some cal-
ibration of key parameters, but such model applica-
tions help to understand the past and project
future recovery. For example, application of the
MAGIC (Model of Acidification of Groundwater
in Catchments) model to lakes in Atlantic Canada
suggests that the chemical condition of the lakes  is
much improved compared to the condition in the
mid-1970s. Further recovery requires additional
reductions in acidic deposition (up to 50 percent),
however, and will take decades to  occur in some
areas. A summary of such work for Canada will be
published shortly in the 2004 Canadian Acid Rain
Science Assessment.
EPA scientists recently concluded a 10-year analysis
of water quality data in the United States to deter-
mine how U.S.  waters are responding to the reduc-
tion in acid deposition that has occurred over that
time period.21 The analysis indicates that acid neu-
tralizing capacity (ANC)—a measure of the ability
to buffer acidity—in lakes in the Adirondacks,
Appalachians, and Upper Midwest has begun to
increase, a sign  of greater capacity to withstand
acidity and a sign of recovery. Lakes in the north-
eastern United  States, however, as well as streams
in the Blue Ridge region of Virginia and West
Virginia, do not yet  show signs of recovery. All
areas monitored by EPA's acidic surface water mon-
itoring program, except for Blue Ridge streams,
show that sulfate concentrations in lakes are
declining. The analysis indicates that this reduction
is occurring fastest in the most acid-sensitive waters
and that the reductions in sulfate concentrations in
water are a direct result of implementation of the
U.S. Clean Air Act Amendments of 1990.
The Hubbard Brook Research Foundation con-
tinues to support comprehensive research and
monitoring of the effects of acid deposition in the
northeastern United States. One recent publica-
tion, Acid Rain Revisited: Advances in Scientific
Understanding Since the Passage of the 1970 and
1990 Clean Air Act Amendments22, provides a con-
cise overview of the most  important research
results over the last years. The authors report that
acid deposition is accelerating base cation leach-
ing from soils and increasing aluminum concen-
trations in soil  porewater. Acid deposition also
increases the concentration of sulfur and nitrogen
in soils, leaches calcium from red spruce needles
and base cations from sugar maples, making them
more susceptible to freezing, pests, drought, and
other stresses, and, of course, acidifies lakes and
streams. The study also reports positive  progress
as a result of implementation of the Clean Air
Act but that more emission reductions are needed
for  full recovery to take place.
21 Stoddard, J. L, J. S. Kahl, F. A. Deviney, D. R. DeWalle, C. T. Driscoll, A. T. Herlihy, J. H. Kellogg, P. S. Murdoch, J. R. Webb, and K. E. Webster. 2003.
 Response of surface water chemistry to the Clean Air Act Amendments of 1990. EPA620-R-03-001, U.S. Environmental Protection Agency, Washington, DC.
22 Driscoll, C.T., G.B. Lawrence, A.J. Bulger, T.J. Butler, C.S. Cronan, C. Eagar, K.F. Lambert, G.E. Likens, J.L. Stoddard, K.C. Weathers. 2001. Acid
 Rain Revisited: Advances in scientific understanding since the passage of the 1970 and 1990 Clean Air Act Amendments. Mubbard Brook Research
 Foundation. Science Links™ Publication, Vol. 1, No. 1.

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                                       Section 3—Scientific and Technical Cooperation and Research     39
Forest  Effects

Canadian and U.S. governments are involved in
a joint Forest Mapping Project under the Acid
Rain Action Plan endorsed by the NEG/ECP.
The project involves applying a protocol devel-
oped and published in 1991 to assess forest sensi-
tivity to atmospheric sulfur and nitrogen
deposition. The maps covering Quebec and the
Atlantic provinces, along with the New England
states, will depict critical loads, or sustainable
loads, for sensitive forest ecosystems. These
"loads"  depict the maximum deposition of atmos-
pheric sulfur and nitrogen  that a forest ecosystem
can sustain without a net loss in soil reserves of
plant nutrients. Although  the government of
Ontario is not part of the NEG/ECP, the province
has also carried out critical loads mapping
through a contract with Trent University. Figure
37 is a Canadian product of the collaborative
project, published in the 2004  Canadian Acid
Rain Assessment. In this figure, critical loads
depict a "no harvest" scenario. Depending on the
                                                   harvesting practice used, additional soil nutrient
                                                   losses could occur, thus reducing the critical load
                                                   for a given forest ecosystem.

                                                   U.S. and Canadian scientists continue to work at
                                                   the U.S.-led Aspen Free-Air CO2 Enrichment
                                                   (FACE) Project (http://aspenface.mtu.edu),
                                                   established in 1997 on a site in northern
                                                   Wisconsin. The free-air experiment is in its sev-
                                                   enth year (1998-2004), studying trembling aspen,
                                                   paper birch,  and sugar maple exposure to elevated
                                                   CO2 and ozone concentrations. Aspen FACE is
                                                   the world's largest, open-air climate change
                                                   research facility and the only FACE site where
                                                   scientists can study the impact of the greenhouse
                                                   gases carbon dioxide  (CO2) and ozone on forest
                                                   ecosystems.

                                                   These two gases act in opposing ways, and they
                                                   can be harmful even  at relatively low concentra-
                                                   tions. Ozone offsets or moderates the positive
                                                   responses induced by elevated CO2. Aspen FACE
Figure 37. Critical Loads for Forest Soils in Canada
Critical loads for forest soils in Canada, representing the combined effects of both acidic sulfur and nitrogen deposition. For sulfur, 1000
eq/ha/yr is equivalent to 16 kg/ha/yr; for nitrogen, to 14 kg/ha/yr. This figure is a preliminary result of the 2004 Canadian Acid Rain
Science Assessment. To obtain permission to reproduce this map in whole or in part, contact the Canadian Forest Service Atlantic
Forestry Centre (afcpublications@nrcan.gc.ca).

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40     United States-Canada Air Quality Agreement—Progress Report 2004
      Figure 38. USDA Evaluation of Annual Average Wet
      Sulfate Deposition by Ecoregion (1994-2001)
           Deposition in the ecoregions with highlighted borders exceeded the 95th
           percentile of deposition levels.
      Figure 39. USDA Evaluation of Annual Average Wet
      Inorganic Nitrogen Deposition  by Ecoregion (1994-2001)
                      *  *
                                          "*^L
  41-U
  11 II
Deposition in the ecoregions with highlighted borders exceeded the 95th
percentile of deposition levels.
      Figure 40. USDA Ozone Bioindicator Expressed as a
      Biosite Index
ozone exposure ranged between
78 and 93 ppb from 1998 to
2003, which is the fourth high-
est annual daily maximum  8-
hour concentration. This
exposure induced negative
effects in aspen, which have
cascaded through the ecosys-
tem from gene expression to
productivity. It has been found
that ozone delays leaf-out and
significantly accelerates leaf-
drop in the fall, thus shorten-
ing the effective growing
season for aspen (North
America's most widely distrib-
uted forest tree species)
between four and six weeks.
The U.S. Department of
Agriculture  (USDA)/U.S.
Forest Service initiated the
Forest Health Monitoring
Program in 1991
(www.na.fs.fed.us/spfo/fhm) as
a multi-agency cooperative
effort to determine the status,
changes, and trends of forest
health indicators in all forest
ecosystems in the United
States. An analysis of spatial
trends in average annual wet
sulfate and inorganic nitrogen
deposition (1994-2001)  is  pre-
sented in Figures 38 and 39.
Sulfur and nitrogen deposition
remains high in sensitive
ecoregions. Figure 40  shows the
results of an ozone bioindicator
study, which found that the
oak-hickory forests of southern
Illinois and  Indiana are in  the
highest risk  category for ozone
damage. Most ecoregion sec-
tions in the  north central and
western United States had  a
biosite index of less than 5 (see
Table 2).
The most recent U.S. research
on the effects of acid deposi-
tion on forest ecosystems
           Based on surveys for ozone damage to vegetation from 1997-2001. See
           Table 2 for information on the index.

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                                             Section 3—Scientific and Technical Cooperation and Research
Table 2.  USDA Ozone Biosite Index Categories,  Risk Assumption, and  Possible Impact
  Biosite Index
Bioindicator
Response
Assumption of
Risk to Forest
Resource
Possible Impact
  0 to < 5.0
Little or no
foliar injury
                                           None
                     Visible injury to isolated genotypes of sensitive species
                     (e.g., common milkweed, black cherry).
                                                                Visible injury to highly sensitive species (e.g., black
                                                                cherry; effects noted primarily at the tree-level).
  15.0 to < 25.0
Moderate to severe
foliar injury
Moderate
Visible injury to moderately sensitive species (e.g., tulip
poplar; effects noted primarily at the tree-level).
  >25
Severe foliar injury     High
                     Visible injury leading to changes in structure and func-
                     tion of the ecosystem.
focuses on the effects of biogeochemical processes
that affect plant uptake, retention, and cycling of
nutrients within forested ecosystems. In particu-
lar, researchers now know  that documented
decreases in base cations (calcium, magnesium,
potassium, and others) from soils in the north-
eastern and southeastern United States are at
least partially attributable  to acid deposition.23
Other research has shown that unpolluted tem-
                                    perate forests can become separated from historic
                                    sources of nutrients in bedrock and rely almost
                                    exclusively on atmospheric deposition for all nec-
                                    essary nutrients, providing a new picture of the
                                    sensitivity of forests to air pollution.24 Finally,
                                    research on red spruce has indicated  that calcium
                                    loss from needles as a result of acid deposition can
                                    make trees more susceptible to  disease, frost, and
                                    drought.25
 ' Lawrence, G. W., M. B. David, S. W. Bailey and W. C. Shortle. 1997. Assessment of calcium status in soils of red spruce forests in the northeastern
  United States. Biogeochemistry 38:19-39; Huntington, T. G., R. P. Hooper, C. E. Johnson, B. T. Aulenbach, R. Cappellato and A. E. Blum. 2000.
  Calcium depletion in a southeastern United States forest ecosystem. Soil Science Society of America Journal 64:1845-1858.
 1 Kennedy, M.J., L.O. Hedin, and L.A. Derry. 2002. Decoupling of unpolluted temperate forests from rock nutrient sources revealed by natural
  87Sr/86Sr and 84Sr tracer addition. Proc. Natl. Acad. Sci. 99:9639-9644.
 ' DeHayes, D. H., P. G. Schaberg, G.J. Hawley, G. R. Strimbeck.  1999. Acid rain impacts calcium nutrition and forest health: Alteration of mem-
  brane-associated calcium leads to membrane destabilization and foliar injury in red spruce.  BioScience. 49:789-800.

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       United States-Canada Air Quality Agreement—Progress Report 2004
Conclusion
   The United States and Canada have
continued to fulfill the obligations set forth
in the Air Quality Agreement successful-
ly. Implementation of each country's acid
rain control program is a notable achieve-
ment of the Agreement; however, both
countries recognize that additional efforts
are necessary to address ongoing human
health and environmental problems, par-
ticularly in highly  sensitive areas and with-
in the United States-Canada transboundary region.

   The United States and Canada successfully negotiated an Ozone Annex in 2000, and the
2004  Progress Report is the first biennial report to incorporate information on the progress
being made to address transboundary ozone pollution in the eastern border regions of each
country. To assist in completing this first review of progress, the United States and Canada
met in Quebec City in June 2004 and, with stakeholders, outlined the programs that have  been
implemented in each country, discussed the emission reductions expected, and charted the
ozone air quality levels that will serve as benchmarks for future reviews of progress to meet the
ozone air quality standards in each country.

   Efforts to address PM levels in the air are important in both the United States and Canada.
Within the context of the Air Quality Agreement, transboundary PM transport has  become an
issue of interest. The conclusions of a joint scientific report on transboundary PM were issued
in 2004 and are summarized in the 2004 Progress Report.  The first joint effort of this kind
to be undertaken by the two countries,  these conclusions and those of other joint analyses,  such
as that in  the  Georgia Basin—Puget Sound of British Columbia and Washington State, provide
the basis for moving forward in a bilateral context. In particular, these conclusions guide the
countries in addressing PM and other air-related matters with priority  given to the eastern half
of the two countries and with due consideration given to the issues identified in the shared air-
shed in the Georgia  Basin—Puget Sound and the Rocky Mountain region.

   Human health and the environment have benefited greatly from progress made under the
U.S.-Canada Air Quality Agreement. Both countries look forward to assessing the results of
implementing  the Ozone Annex and to addressing additional transboundary air pollution problems.

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Appendix
United States-Canada Air Quality Committee
United States Co-Chair:

Claudia McMurray
Deputy Assistant Secretary for the Environment
U.S. Department of State

Members:

Bruce Hicks
Director, Air Resources Lab
National Oceanic and Atmospheric Administration

Brian McLean
Director, Office of Atmospheric Programs
U.S. Environmental Protection Agency

Steve Page
Director, Office of Air Quality Planning & Standards
U.S. Environmental Protection Agency

Bruce Polkowsky
Air Resources Division
National Park Service

Steve Rothblatt
Director, Air and  Radiation Division, Region 5
U.S. Environmental Protection Agency

David Shaw
Acting Director, Division of Air Resources
New York State Department of Environmental Conservation

Ed Watts
Office of Policy and International Affairs
Department of Energy

Subcommittee  on Program Monitoring and
Reporting Co-Chair:

Brian McLean
Director, Office of Atmospheric Programs
U.S. Environmental Protection Agency

Subcommittee on Scientific Cooperation Co-Chair:

Bill Russo
Office of Research and Development
U.S. Environmental Protection Agency
Canada Co-Chair:

Barry Stemshorn
Assistant Deputy Minister
Environmental Protection Service
Environment Canada

Members:

Randy Angle
Science and Standards Branch
Environmental Assurance
Alberta Environment

Raynald Brulotte
Air Quality Division
Quebec Ministry of the Environment

Marc-Denis Everell
Meteorological Service of Canada
Environment Canada

Peter Fawcett
United States Transboundary Division
Foreign Affairs and International Trade

Marcie Girouard
Sustainable Technologies and Service Industries Branch
Industry Canada

Robert Langdon
Environmental and Natural Areas Management
Nova Scotia Department of Environment and Labour

John Lowe
Energy Policy Branch
Natural Resources Canada

Gord Owen
Air Pollution Prevention  Directorate
Environmental Protection Service
Environment Canada

Mark Raizenne
Healthy Environments and Consumer Safety Branch
Health Canada

Tony Rockingham
Air Policy and Climate Change Branch
Ontario Ministry of the Environment

Hu Wallis
Water, Air and Climate Change Branch
British Columbia Ministry of Water, Land and Air Protection

Subcommittee on Program Monitoring and
Reporting Co-Chair:

Peggy Farnsworth
Director, Transboundary Air Issues Branch
Environmental Protection Service
Environment Canada

Subcommittee on Scientific Cooperation Co-Chair:

Keith Puckett
Director, Air Quality Research
Atmospheric and Climate Science
Meteorological Service of Canada
Environment Canada

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44    United States-Canada Air Quality Agreement—Progress Report 2004
Notes

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To Obtain Additional Information,  Please Contact:
In the United States

Clean Air Markets Division
U.S. Environmental Protection Agency
Mail Code 6204J
1200 Pennsylvania Avenue, NW
Washington, DC 20460

Internet:
www.epa.gov/airmarkets
In Canada

Transboundary Air Issues Branch
Environment Canada
351 St. Joseph Boulevard
11th Floor, Place Vincent Massey
Gatineau, Quebec K1A OH3

Internet:
www.ec.gc.ca/pdb/can_us/canus_links_e.cfm

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