Transcript Slide 1

Chapter 15

Improving Water Quality: Controlling Point and Nonpoint Sources

© 2004 Thomson Learning/South-Western

Controlling Point Sources: Effluent Limitations

Overview of the Effluent Limits and National Permits

Effluent Limitations – instituted through the Federal Water pollution Act (FWPCA) of 1972

Technology-based effluent limitations – standards to control discharges from point sources based primarily on technological capability

Direct industrial discharges – release their wastes into surface waters without any intermediary

Permit System

National Pollutant Discharge Elimination System (NPDES) – a federally mandated permit system used to control effluent releases from direct industrial discharges and POTWs

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Controlling Point Sources: Effluent Limitations

Technology-Based Effluent Limitations for Direct Industrial Dischargers

Effluent limitations are more accurately termed performance based standards

Standards are source dependent

New source – one whose construction begun after proposed regulations had been announced

Existing source – one whose construction begun before proposed regulations had been announced

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Analysis of Effluent Limitations on Point Sources

Administrative Delays

Over the past 25 years, the EPA’s track record has been slow in developing and revising effluent guidelines, which are the basis for the federal limitations

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Analysis of Effluent Limitations on Point Sources

Imprecise and Inconsistent Definitions

Fundamental problem with effluent limitations is that they are not aligned with the nation’s objectives

Water quality-related limitations – modified effluent limits to be met if the desired water quality level is not being achieved even if polluters are satisfying the technology-based limits

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Analysis of Effluent Limitations on Point Sources

Meeting the Zero Discharge Goal

Overly ambitious

Inefficient objective

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Analysis of Effluent Limitations on Point Sources

Absence of Economic Decision Rules

Lack of an Efficiency Criterion

Provisions offer no guidance as to how they are to be used in decision making

Lack of precision in the reference to benefits and costs

Cost-Ineffective Decision Making

Under the Clean Water Act, the uniformity of the effluent limits prevents a cost-effective outcome

Lack of a reward system for efficient abaters to reduce effluents beyond legal limits

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Waste Treatment Management and the Potw Program

The Pre-1987 Federal Grant Program

Federal grant program – provided major funding from the federal government for a share of the construction costs of POTWs

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Waste Treatment Management and the Potw Program

Shift to the State Revolving Fund (SRF) Program in 1987

State Revolving Fund (SRF) program – establishes state lending programs to support POTW construction and other projects

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Analysis of the POTW Funding Program

Assessing the Accomplishments Attributable to Federal Subsidies

Argument that federal subsidies have been effective because municipal waste treatment has progressed measurably is falsely motivated

An increasing percentage of the population is served by facilities using at least secondary treatment

Observed improvement in wastewater treatment cannot be attributed fully to the grant program

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Analysis of the POTW Funding Program

Inefficiencies in the Federal Grant Program

Lack of Incentives

Policy Response

Equity Implications

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Controlling

Nonpoint Sources

Nonpoint Source Management Program – a three-stage, state implemented plan aimed at nonpoint source pollution

Best management practices (BMP) – strategies other than effluent limitations to reduce pollution from nonpoint sources

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Controlling Nonpoint Sources

Devising and Updating a Framework

In 1989, the EPA developed its Nonpoint Source Agenda for the Future to help define national goals for nonpoint source pollution and to find appropriate mechanisms to achieve them

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Controlling Nonpoint Sources

Watershed Approach

Watershed – land areas that drain into a particular water body

Attending to the watershed allows public officials to gain a better sense of the overall environmental conditions in an area

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Analysis of Controls on Nonpoint Sources

Delegating Control to the States: The Pros

Variability of Nonpoint Source Pollution

Land Use Practices

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Analysis of Controls on Nonpoint Sources

Delegating Control to the States: The Cons

Information Deficiencies

Poor Monitoring Systems

Inconsistent Controls

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Analysis of Controls on Nonpoint Sources

Analyzing the Federal Role in Nonpoint Source Controls

Resource Allocation

Federal funds are needed to fill information voids about nonpoint source pollution

Coordination with Other National Programs

Conflict between water quality objectives and other regulations needs to be resolved at federal level

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Proposals for Reform: Using the Market

Market Approaches to Point Source Pollution

Effluent Fees

Volume-based effluent fee – a fee based on the quantity of pollution discharged

Pollutant-based effluent fee – a fee based on the degree of harm associated with the contaminant being released

Tradeable Effluent Permits

Tradeable effluent permit market – the exchange of rights to pollute among water polluting sources

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Proposals for Reform: Using the Market

Figure 15.2 Cost-Effectiveness of a Per Unit Effluent Fee

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Proposals for Reform: Using the Market

Figure 15.3 Inefficiency of a National Per Unit Effluent Fee

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Proposals for Reform: Using the Market

Market Approaches to Nonpoint Source Pollution

Product Charge – fee added to the price of a pollution generating product based on its quantity of some attribute responsible for pollution

Effluent Reduction Trading Within a

 Effluent reduction trading policy – establishes an abatement objective for a watershed and allows sources to negotiate trades for rights to pollute  Effluent reduction credits – tradeable permits issued if a polluter discharges a lower level of effluents than what is attained by law  Effluent allowances – tradeable permits issued up-front that give a polluter the right to release effluents in the future 21