Meeting the Challenge
               of  Cleaner Air
                                 1
        United States • Canada

        Progress under the      ^ U U O
        Air Quality Agreement
r~.y
•

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A  History of  Cooperation
         ultiple environmental and health problems (including acid rain, impaired visibility,
         damaged ecosystems, and respiratory illness) are caused or worsened by air pollution
         from mobile and stationary emission sources in Canada and the United States. Both
              ^nations have an interest in reducing transboundary air pollution. In 1991, the
         ^^Sm United States and Canada committed to reduce the impact of transboundary
              f air pollution through the United States-Canada Air Quality Agreement
      ^ f      (AQA). The AQA established a formal and flexible method of addressing
              I  transboundary air pollution and paved  the way for cooperation on a variety of
      *^J^^    air quality issues, including acid rain, ozone, and particulate matter (PM).

                This brochure provides an overview of the AQA and features recent progress
                made by the United States and Canada to control transboundary air pollution
                under the Agreement. A more complete presentation and discussion of
                this progress can be found in the 2008 Progress Report at and .
Air Quality Agreement
The 1991 Air Quality Agreement originally included two annexes. Annex 1, the Acid Rain
Annex, focuses on the commitments of both nations to reduce emissions of sulfur dioxide
(S02) and nitrogen oxides (NOX), the primary precursors of acid rain. Under Annex 2, the
Scientific and Technical Activities and Economic Research Annex, the United States and
Canada agree to coordinate their respective air pollution monitoring networks and exchange
information.

In December 2000,  Annex 3, the Ozone Annex, was added to the Agreement. This Annex
commits the two nations to reducing emissions of NOX and volatile organic compounds (VOCs),
the precursor pollutants to ground-level ozone. Ground-level ozone is the major component of
smog.

In 2007 and 2008, negotiating sessions were held between the United States and Canada to
discuss a PM Annex under the AQA.

A bilateral Air Quality Committee is responsible for coordinating the overall implementation
of the AQA. Two subcommittees—Program  Monitoring and Reportingand Scientific
Cooperation—meet annually with the Air Quality Committee and carry out yearly activities.
The two nations prepare a joint progress report every two years and conduct a regular five-year
review and assessment of the Agreement.
Note: American spelling is used throughout this brochure.

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        The  Acid  Rain  Challenge
   Acid Rain

   Acid deposition, more commonly known as acid rain, occurs when emissions of S02 and NOX from power plants,
   vehicles, and other sources react in the atmosphere (with water, oxygen, and oxidants) to form various acidic
   compounds. These acidic compounds then fall to earth in either a wet form (rain, snow, or fog) or a dry form (gases and
   particles) and can harm aquatic and terrestrial ecosystems (particularly forests); affect human health; impair visibility;
   and damage automotive finishes, buildings, bridges, monuments, and statues.
   Key Commitments of the Acid Rain Annex
   Both the United States and Canada have been successful in reducing S02 and NOX emissions and thus, mitigating
   the impact of acid rain on each side of the border. Despite these achievements, however, further efforts are needed to
   restore all damaged ecosystems to their pre-acidified conditions.

   Commitments and Progress: SO, Emission Reductions
   CANADA:
   • In 2006, Canada's total S02 emissions were 2 million
    tonnes,1 or about 38 percent below the national cap of
    3.2 million tonnes (Figure 1).
   • S02 reductions represent more than a 55-percent
    decrease from Canada's total S02 emissions in 1980 and
    a 35-percent decrease from the 1990 emission level.
   • S02 emissions in the seven easternmost provinces were
    1.4 million tonnes in 2005, or nearly 40 percent below
    the (now expired) eastern Canada cap of 2.3 million
    tonnes.
   • Canada is committed to further reducing acidifying
    emissions through the more recent Canada-wide Acid
    Rain Strategy for Post-2000.
     Figure 1.  Canadian SO2 Emissions from
         Acid  Rain Sources, 198O-2OO6
                        National S02 Cap: 3.2 million tonnes
                      '19921  '19961
                          Year
'20001
'20041
'20061
   UNITED STATES:
   • The United States succeeded in meeting its commitment
    to reduce annual S02 emissions by 10 million tons from
    1980 levels by 2000.
   • In 2007, emissions of S02 from the electric power sector
    fell below the 2010 national emission cap of 8.95 million
    tons for the first time, achieving the U.S. commitment
    three years early (Figure 2).
• National S02 emissions from all sources have fallen from
  nearly 26 million tons in 1980 to less than 13 million
  tons in 2007 (see ).
• Most of the reductions in S02 emissions are due to
  the Acid Rain Program  (ARP), which requires major
  reductions of S02 and NOX emissions from the electric
  power sector.
1 One tonne is equal to 1.1 short tons.

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    Figure 2.  U.S. SO2 Emissions from Acid Rain
   Program Electric Generating Units, 198O-2OO7
   20-
   18-17.3

   16-

   14-

   12-

   10-

    8-

    6-

    4-

    2-
        I All Affected Electric Generating Units
        I Phase II (2000 on) Sources
        I Phase I (1995-1999) Sources
         Allowances Allocated
      Ii980li9851i9901i

      Source: EPA, 2008
           II
         i
   10.2  ™ 10.3  10.2
^^•gsjgsjgsjgs  95   95
.'1997'1998'l999'200o'200l'2002'20031:
        Year
Commitments and Progress: NOX Emission Reductions

CANADA:
• Surpassed its NOX emission reduction target at power
  plants, major combustion sources, and metal smelting
  operations by 100,000 tonnes below the forecasted level
  of 970,000 tonnes.
• Recently passed stringent standards for NOX emissions
  from on-road and off-road sources, effective from 2004
  to 2009.
                                       UNITED STATES:
                                       • Emissions of NOX from all NOX program-affected units
                                         were 3 million tons, and total NOX emissions from all
                                         sources covered by the ARP were 3.3 million tons
                                         (Figure3).
                                       • This  level is 4.8 million tons less than the projected NOX
                                         levels for 2000 without the ARP, or more than double the
                                         NO emission reduction  goal under the Acid Rain Annex.
    Preventing Air Quality Deterioration
            and Protecting Visibility

    Under the Acid Rain Annex, Canada and the United States
    have recognized the importance of preventing air quality
    deterioration and protecting visibility from sources that could
    cause significant transboundary air pollution. In October 2007,
    a joint U.S.-Canada visibility workshop was held in Research
    Triangle Park, North Carolina. The U.S. Environmental
    Protection Agency (EPA), the U.S. Federal Land Managers,
    and Canadian government representatives came  together to
    review the history of the U.S. visibility program and to share
    information and lessons learned from joint analyses, discuss
    international transport, and investigate future collaboration.
                                       -- V
                                       (/) °
                                       —
                                       'E
                                       uj-2.
                                              Figure 3.  NOX Emission Trends for All
                                              Acid Rain Program Units, 199O-2OO7
                                         7-
                                         5-
                                                                   I NOX Program Affected Sources
                                                                   I Title IV Sources Not Affected for NOY
                                                                 1990 1995 1996 1997 1998 1999 2000 2001 2002 2003  2004 2005 2006 2007
                                                                                        Year
                                                                Source: EPA, 2008

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Acid Deposition Trends

Both nations use wet deposition (rain or snow) data to assess how the atmosphere is responding to decreasing
or increasing emissions of sulfur and nitrogen. Figures 4 and 5 show the U.S.-Canada spatial patterns of wet
sulfate and wet nitrate deposition, respectively, for 1990 and 2005. The pattern from 1990 to 2005 illustrates that
significant reductions occurred in wet sulfate deposition in both the eastern United States and much of eastern
Canada. Reductions in wet nitrate deposition have generally been more modest than for wet sulfate deposition.
            Figure 4. Annual Sulfate Wet Deposition
                199O                                2OO5
                                                                kg/hatyr
                                                                .	' <= 5
                                                                i   : 5 -10
                                                                I   h°-is
                                                                   i 15 - 20
                                                                I   I 20 - 25
                                                                I    25-30
             Figure 5. Annual Nitrate Wet Deposition
                199O                                2OO5
      Consultation
    and Notification
       Concerning
        Significant
     Transboundary
      Air Pollution

Since 1994, Canada and the United
States have regularly notified each
other concerning potential new
sources and modifications to existing
sources of transboundary air pollution
within 62 miles (100 km) of the
U.S.-Canada border. Since publication
of the 2006 United States-Canada
AQA Progress Report, Canada has
notified the United States of eight
additional sources, for a total of 52
Canadian notifications. The United
States has notified Canada of nine
additional sources, bringing the total
number of U.S. notifications to 56.
More information is available on the
government Web sites of each
country at:

Canada:
www.ec.gc.ca/cleanair-airpur/CAOL/
canus/eanus applic e.cfm

United States:
www.epa.gov/ttn/gei/uscadata.html
Source: National Atmospheric Chemistry (NAtChem) Database (www.msc-smc.ec.gc.ca/natchem/index_e.html)
and the National Atmospheric Deposition Program (NADP)

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                         11    .11  i  I             I
      Making  Progress on  Ground-Level  Ozone
Ground-Level Ozone

Ground-level ozone is a gas that forms when emissions of NOX and VOCs react with other chemicals in the air in the
presence of strong sunlight. NOX and VOCs are emitted by combustion sources (such as vehicles and power plants). VOCs
are also given off by solvents, cleaners, and paints. Ground-level ozone can cause or exacerbate respiratory illnesses and is
especially harmful to young children, the elderly, and those suffering from chronic asthma and/or bronchitis. Ground-level
ozone can affect leaves and roots of plants, especially trees, which can make them more susceptible to attack from insects
and diseases and can reduce their ability to withstand droughts, windstorms, and manmade stresses such as acid rain.
Key Commitments of the Ozone Annex
The commitments to reduce NOX and VOCs apply to a defined region in both countries known as the Pollutant Emission
Management Area (PEMA), which includes central and southern Ontario, southern Quebec, 18 U.S. states, and the District of
Columbia. The states and provinces within the PEMA are the areas where emission reductions are most critical for reducing
transboundary ozone.

CANADA:
• The Ozone Annex commits Canada to new stringent NOX and VOC emission reduction standards for vehicles, engines, and
  fuels. By 2020, it is estimated that NOX and VOC emissions combined from on-road and off-road vehicles and engines in the
  Canadian portion of the PEMA will be reduced by 41 and 35 percent, respectively, compared to 2005 emissions.
• With regard to stationary sources, Canada is complying 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, for 2007.
• Canada has taken efforts to reduce VOC emissions by developing two regulations—one on dry cleaning and another on
  solvent degreasing—and using VOC emission limits for new stationary sources.
• The Canada-wide Standard (CWS) for ozone committed provincial jurisdictions to developing implementation plans
  outlining the comprehensive actions being taken within each jurisdiction to achieve the standards.
UNITED STATES:
• The Ozone Annex commits the United States to
  implementing the NOX transport emission reduction
  program, known as the NOX SIP Call, in the PEMA states
  that are subject to the rule.
• As of 2007, all affected states and the District of Columbia
  chose to meet the mandatory NOX SIP Call emission
  reductions primarily through participating in the NOX
  Budget Trading Program (NBP), a market-based cap and
  trade program.
• In the 2007 ozone season  (May 1 to September 30),
  sources participating in the NBP emitted 506,312 tons of
  NOX (Figure 6).This is almost 5 percent below the 2007
  allowable NO  emission  level (total state trading budget).
Figure 6. Ozone Season NOX Emissions
under the NOV Budget Trading Program
              I Ozone Season NOX Emissions (thousand tons)
              I Total State Trading Budget
2,000- 1,924
 500-
                 849
                       •    ^    508    506™
      1990
                                                          Source: EPA, 2
            2000
                        2004
                       Year
                              2005
                                    2006
                                          2007

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• To help reduce emissions of NOX and VOCs from major new sources, EPA has promulgated New Source Performance
  Standards (NSPS) for the 36 categories of stationary sources identified in the Ozone Annex.
• To help reduce VOC emissions, EPA  has promulgated regulations to control hazardous air pollutant emissions for the 40
  categories of industrial sources listed in the Ozone Annex. Additionally, EPA has promulgated national rules for the control
  of VOCs in automobile repair coatings,  consumer products, and architectural coatings.
• To address motor vehicle emissions,  the United States committed to implementing regulations for reformulated gasoline,
  controls of emissions from new and in-use highway vehicles and engines, and controls and prohibitions on diesel fuel
  quality. EPA has applied engine standards for the five nonroad engine categories identified in the Ozone Annex.

Ambient Levels of Ozone
Under the Ozone Annex, the United States and Canada are required to report on the amount of ozone, NOX, and VOCs in
the air we breathe (i.e., ambient concentrations) from all relevant monitors within 500 km of the border. Both countries
have extensive networks to monitor ground-level ozone and its precursors, and both governments prepare routine reports
summarizing measurement levels and trends. The latest reported data from both countries are for 2006.

Figure 7 illustrates that higher levels  of ozone occurred in the Great Lakes and Ohio Valley regions, as well as downwind of
urban areas.
                 Figure 7. Ozone Concentrations along the  Canada-U.S. Border
         (Three-Year Average of the Fourth Highest Daily  Maximum 8-Hour Average),
                                                2004-2006
      4 I
 Note: Data contoured are the 2004-2006 averages of annual fourth highest daily values, where the daily value is the highest running 8-hour average for the day. Sites used
 had at least 75 percent of possible daily values for the period.
 Source: Environment Canada National Air Pollution Surveillance (NAPS) Network Database, 2008 (www.etc-cte.ec.gc.ca/naps/
 index_e.html); EPA Aerometric Information Retrieval System (AIRS) Database (www.epa.gov/air/data/index.html)

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Ambient Concentrations of Ozone, NOX, and VOCs

Figure 8 illustrates that ozone levels within the PEMA have decreased over time with a notable decline in ozone levels
since 2002. Figures 9 and 10 depict the average ozone season levels of ozone precursors NOX and VOCs in the eastern
United States and Canada. Although NOX and VOC concentrations have fluctuated over recent years, these fluctuations
are most likely attributable to changes in weather conditions. Overall, the data indicate a downward trend in the
ambient levels of both NOV and VOCs.
     Figure 8. Annual Average Fourth Highest
             Maximum 8-Hour Ozone
     Concentration for Sites within 500 km of
       the Canada-U.S. Border, 1995-2006
      100-
       10-
                                   United States
                                   Canada
       °~l    I   I   I    I   I    I   I    I   I    I   I
        1995 1996 1997 1998 1999 2000 2001 2002  2003 2004 2005 2006
                          Year

         Source: EPA and Environment Canada. 2008
Figure 9. Average Ozone Season 1-Hour
 NOX Concentration for Sites within 500
     km of the Canada-U.S. Border,
               1995-2006
  5-
1 Canada

' United States
  J~l   I    I   I    I   I    I   I    I   I   I    I
   1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
                     Year

    Source: EPA and Environment Canada. 2008
                Figure 10. Average Ozone Season 24-Hour VOC Concentration
                 for Sites within 500 km of the Canada-U.S. Border, 1997-2006
      120-
                                  -^K— Canada

       °~l    I     I    I    I    I   ^P^P^P  I
        1997  1998  1999  2000  2001 2002 2003  2004  2005 2006
                          Year
         Source: EPA and Environment Canada. 2008
                                                    o
                                                    o
                                                    o
                                                       30-
                                                       20-
                           •   United States |

   ~l    I     I    I    I    I    I     I    I    I
   1997  1998 1999  2000  2001  2002 2003 2004  2005  2006
                     Year

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           New  Actions  on  Acid  Rain,  Ozone,
           and  Particulate  Matter
CANADA
The federal government's clean air initiative, Turning the Corner: An
Action Plan to Reduce Greenhouse Gases and Air Pollution, includes a
regulatory framework for air emissions that sets out proposed mandatory
and enforceable reductions in emissions of air pollutants and greenhouse
gases from industrial sectors, as well as regulatory and other action
plans for transportation and consumer and commercial products. In
addition to delivering measurable overall health and environmental
benefits, the expected reductions in S02 and NOX emissions from
industry and transportation will lead to reductions in acid deposition and
improvements in visibility.

UNITED STATES
Due to recent research on health effects from ozone, EPA established
new, tighter primary and secondary National Ambient Air Quality
Standards (NAAQS) for ozone. In October 2006, EPA completed a
required five-year review of the PM standards, maintained the existing
annual PM25 standard, and established a more protective 24-hour
standard. EPA also retained the existing 24-hour PM10 standard but revoked the annual PM10 standard because of a lack of
evidence linking health problems to long-term exposure to coarse particle pollution.

PM Annex Negotiations
Both countries are committed to negotiating the addition of a PM  Annex to the United States-Canada AQA while actively
developing and  implementing emission reduction programs to reduce fine particle concentrations.
The United States and Canada have held two negotiating sessions on a PM Annex under the United States-Canada
AQA: one in November 2007 and one  in May 2008. Substantial progress was made during the most recent session, and
intersessional work is continuing.
       Particulate Matter

PM includes both solid particles and liquid droplets
found in the air. Many manmade and natural
sources emit PM directly or other pollutants that
react in the atmosphere to form PM. PM comes in
a range of sizes and is associated with numerous
health effects. Particles less than 10 micrometers
in diameter (PM)0)—especially those less than 2.5
micrometers in diameter (PM25)—pose the greatest
health risk because they can be inhaled and impact
both the respiratory and cardiac systems. Sulfates
(S04) and nitrates (N03) formed from S02 and NOX
are significant components of PM25. PM is also a
major contributor to regional haze, which reduces
visibility.
  New England Governors (NEG) and
   Eastern Canadian Premiers (ECP)

   The 31st Conference of the NEG/ECP was held in
   June 2007. During this meeting, the governors and
   premiers established a standing committee to draft
   a regional Transportation and Air Quality Action Plan.
   More information on this work and other work of the
   NEG/ECP can be found at .
                                                                                                          7

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           Cooperation  on  Emissions  Monitoring
           and  Inventories
                                                                                            r-
    Emission Trends and Inventories

    Ensuring that emission inventories are publicly available
    contributes to the success of both nations' emission
    reduction goals and air quality management programs.
    Emission inventories help identify the major sources of
    pollution, track the progress of control strategies, and
    provide important data for use in air quality models.
    Figures 11, 12, and 13 show emission trends for total
    S02, NOX, and VOCs in Canada and the United States
    from 1990 to 2006.

    In the United States, the major reductions in S02
    emissions from 1990 to 2006 came from electric power
    generation sources. For NOX, the reductions came from
    on-road mobile sources and electric power generation
    sources. For VOCs, the reductions were from on-road
    mobile sources, waste disposal and recycling,  and
    chemical and allied products manufacturing and use.

    In Canada, the major reductions in S02 emissions came
    from base metal smelters in the industrial sector. For NOX,
    the reductions were from on-road mobile sources, electric
    power generation sources, and industrial sources. For
    VOCs, the reductions came from electric power generation
    sources, on-road mobile sources, and solvent  utilization.
                                                               AIRNow Mapping

                                                  The EPA-led AIRNow program (www.airnow.gov) provides the public
                                                  with easy access to real-time air quality information. Since 2001,
                                                  the jurisdictions in the United States and Canada have collaborated
                                                  to contribute air quality data to the AIRNow program. In 2004, the
                                                  AIRNow Web site was expanded to provide information on PM and
                                                  ozone measurements on a continental scale year-round. Canadian
                                                  and U.S. efforts continue to improve air quality characterization
                                                  by combining measurements with numerical forecasts from the
                                                  operational air quality forecasting model. Each country is improving
                                                  air quality forecasting services and continuing to develop national air
                                                  quality forecast models.

                                                     Figure 1 1. U.S. and Canadian SO2
                                                            Emissions, 199O-2OO6
       30
  Figure 12. U.S. and Canadian NOX
         Emissions, 1990-2006
25
       20
     Z 15-
       10-
                            1 United States
                            1 Canada
                                                 25
                                                          30
                                                            i  i   i  i  i   i  i  i   i  i  i   i  i   i  i  i   r
                                                            1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
                                                                              Year
                                                            Figure 13. U.S. and Canadian VOC
                                                                   Emissions, 1990-2006
                                                                                       United States
                                                                                       Canada
                                                                                                    25
                                                          10-
                                                                                                  -10
8
                •*•
                       •*•
 'n   i  i  i   i  i  i   i  i  i   i  i   i  i  i  i   r
 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
                    Year
 Source: EPA and Environment Canada. 2008
                                                           0
                                                            ~i  i  i   i  i  i   i  i   i  i  i   i  i  i   i  i  r
                                                            1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
                                                                              Year
                                                                                                    0

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        Research  Efforts  on  the  Effects
        of  Air  Pollution
Health Effects
CANADA
Between 2003 and 2007, Health Canada carried out two research programs to
characterize air pollution exposure and human health issues under the Canadian portion
of the Border Air Quality Strategy, coordinated with research in the United States. The
research programs pertain to the Great Lakes Basin Airshed and the Georgia Basin-Puget
Sound International Airshed. Further information on these studies can be found at
 and
, respectively.

UNITED STATES
EPA conducts human health and exposure research as part of the Clean Air Research Program. The research conducted
in this program  includes studies focused on the  Detroit-Windsor area, located within the PEMA. More information on these
studies can be found at  and .
Aquatic Effects
In a recent study, Canadian and U.S. scientists analyzed trends in acidification of lakes and streams in eight regions of the
northeastern United States and southeastern Canada. The scientists looked at data from 1990 to 2004, which approximately
parallels the existence of the U.S.-Canada AQA.

One of the strongest trends found in this analysis was for sulfate, an acidic compound that is formed when S02 emissions
combine with water, oxygen, and oxidants in the atmosphere. After sulfate is formed in the atmosphere it can fall back to
earth and acidify surface waters such as lakes and streams, making it difficult for acid-sensitive aquatic organisms to survive.
The results of this analysis indicate that U.S. and Canadian S02 emission reductions included in the AQA commitments have
resulted in obvious, significant, and substantial declining sulfate trends in all but one of the regions examined.

Critical Loads and Exceedances

The critical load of acid deposition is defined as the maximum deposition that an ecosystem can assimilate without significant
long-term harmful effects. For environmental impacts related to acidification, deposition of both nitrogen and sulfur compounds
can contribute to a critical load exceedance.

CANADA
In the 2004 Canadian Acid Deposition Science Assessment, for the first time in North America, new and combined critical load
estimates were generated for sulfur and nitrogen acid deposition.

UNITED STATES
In the United States, the critical loads approach is not an officially accepted  approach to ecosystem protection. However,
recent activities within federal and state agencies, as well as the research community, indicate that critical loads might be
emerging as a useful ecosystem protection and program assessment tool.
                                                                                                        9

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                     For More  Information
               In Canada:
               Air Emissions Priorities
               Environment Canada
               351 St. Joseph Boulevard
               12th Floor, Place Vincent Massey
               Gatineau, Quebec K1AOH3

               Environment Canada's Web site:
               www.ec.gc.ca/cleanair-airpur/PollutionJssues/
               Transboundary_Air/Canada-_United_States_Air_
               Quality_Agreement-WS83930AC3-l_En.htm

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

               U.S. Environmental Protection Agency's Web site:
               www.epa.gov/airmarkets/progsregs/usca/index.htm
                           Office of Air and Radiation
                           EPA-430-K-08-011
                           1200 Pennsylvania Avenue, NW (6204J)
                           Washington, DC 20460
                           www.epa.gov/airmarkets
                           February 2009
Recycled/Recyclable—Printed with vegetable oil based inks on 100% postconsumer, process chlorine free recycled paper.

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