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PR FACT SHEET ON CLEANING THE AIR AND PROTECTING EASTERN U.S. FROM SMOG

Release Date: 09/24/98
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CLEANING THE AIR AND PROTECTING EASTERN U.S. FROM SMOG

     To help meet the nation's goal of cleaner air, EPA today announced final plans to ensure that 138 million Americans living in the Eastern U.S. will breathe cleaner air.  The new plan calls for reducing smog-causing emissions of nitrogen oxides (NOx) by 1.1 million tons annually, or 28 percent overall, in 22 states and the District of Columbia.  Of the 138 million Americans living in the affected states, 31 million Americans will for the first time breathe air that meets the nation's new public health standard for harmful levels of smog as a result of today's action.  

     This plan is the first effort by EPA and the states to protect public health in "downwind" states from smog that crosses their borders from "upwind" states.  The reductions, required under the Clean Air Act, are necessary for meeting the current health standard for smog and are the central component for meeting the Administration's new health standard for smog announced by the President in July, 1997.  EPA projects that these regional NOx reductions will allow the vast majority of areas to meet EPA's new public health smog standard announced by President Clinton in July, 1997, without having to implement new, more costly controls.
 
     This plan which is based on recommendations from 37 states and extensive comments from communities, business, industry, environmental and public health organizations includes several common sense, cost effective mechanisms to help states meet the needed reductions, including:
     

• Market-based Strategies: The plan includes a model "cap and trade" program that encourages development of a market-based emissions trading program that would cut costs substantially more than traditional approaches.  This "cap and trade" program allows industries great flexibility in choosing pollution controls because they can buy and sell market-based "credits" to reduce their NOx emissions.  

• Flexibility: The plan does not mandate which sources of NOx emissions should be reduced.  I provides Governors with the flexibility to achieve the required reductions in NOx emissions from the sources that make the most sense at the state level.  EPA estimates that reductions from power plants can be achieved for as little as $1500 per ton, which is substantially cheaper than any alternative.  Additional reductions from cars could cost as much as $3400 per ton.  If states focus on power plants for needed reductions, the cost of electricity is estimated to increase by less than $1 dollar per month for the average customer.    

• Cost-Effective Technology:  The technology necessary to achieve the needed NOx reductions from utilities costs as little as $1500/ton, compared with the $2,000 - $10,000/ton if states relied on other sources, such as additional reductions from automobiles, small businesses, factories and small industrial boilers.  Furthermore, in response to concerns raised by states and small business interests, EPA exempted over 90% of the smaller industrial sources

• Timing: Clean air plans are due from states in September, 1999, and needed controls must be in place by 2003.  In response to concerns raised by some electric utilities, the plan contains provisions to provide emission credits for utilities or other sources that demonstrate an inability to achieve the reductions in a timely fashion.  Further, the plan builds in the flexibility needed to implement control technology and ensure electrical reliability without disruptions in power service, or "brownouts," to consumers.  

• Common Sense Implementation: As a result of these cost effective mechanisms, the plan helps states meet the 1990 Clean Air Act requirements in a way that minimizes or altogether avoids additional, more expensive controls on local businesses.  Further, once this plan is fully implemented, 114 counties -- of the 117 counties that meet the current 1-hour ozone standard but not the new, more protective health standard announced by the President announced in July, 1997 -- would be able to meet the new standard with no additional controls.