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Point Source Water Pollution


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Point Source Water Pollution

  1. 1.  Melissa Enoch  Madoka Yoshino  Leslie Tomic   Temirlan Moldogaziev  Courtney Bonney  V625 Environmental Economics 2 April 2008
  2. 2. Which of these are point sources? ScienceDaily (Nov. 8, 2007) — Emissions from coal-fired power plants may be an important source of water pollution and fish contamination, say researchers at the University of Pittsburgh Graduate School of Public Health. Higher Levels Of Pollutants Found In Fish Caught Near A Coal-fired Power Plant Hoosic River Watershed Association “ While a municipal wastewater treatment plant might receive water from many sources, it discharges into a water body at a single point.” -USGS- YES NO YES
  3. 3. In your opinion, is clean water a…? Right 54% Privilege Neither 26% 17% Who do you believe should be responsible for funding the necessary improvements to the nation’s water and wastewater infrastructure? Federal Government 54% Local Ratepayers Both 21% 20% The Luntz Survey (2004)
  4. 4. Why Regulate Point Source? <ul><li>Increased public interest due to visibility </li></ul><ul><li>Easy to locate source and monitor </li></ul><ul><li>Difficulty/cost of cleaning up polluted groundwater </li></ul><ul><ul><li>E.g. approximately 4 liters (about one gallon) of pure trichloroethylene, a common solvent, will contaminate over 1 billion liters (300 million gallons) of water </li></ul></ul><ul><li>EPA reports that more than one-third of the nation's waters are still not meeting water quality standards, </li></ul><ul><ul><li>however, non-point source pollution has been identified as the primary cause. </li></ul></ul>
  5. 5. <ul><li>The Push Towards Clean Water legislation </li></ul>
  6. 6. The Cuyahoga River June 23, 1969 <ul><li>Other fires: 1962, 1952, 1948, 1941, 1936, 1922, 1912, 1887, 1883, 1868. </li></ul><ul><li>1952 fire caused $1.5 million in damages </li></ul><ul><li>In 1968 Cleveland passed a $100 millon bond issue for clean up; 60% of what the US Gov’t paid for nationwide cleanup efforts </li></ul>Photograph by Carol Brown, 1952
  7. 7. History of Sewage Treatment <ul><li>Sewer (Sewage pipe): since 5000 years ago </li></ul><ul><li>19 th C: Cholera and water borne disease threats public health for increased wastewater into open sewers. </li></ul><ul><li>20 th C: The first sewage treatment plant using biological process built in the UK. </li></ul><ul><li>1920s: Sludge dumping to the ocean began </li></ul><ul><li>1992: Ocean dumping of activated sludge ban in effect. </li></ul><ul><li>? ; EPA mandated all wastewater through POTWs to receive at least secondary treatment </li></ul>
  8. 8. <ul><li>The Clean Water Act of 1972 </li></ul>
  9. 9. Clean Water Act of 1972 <ul><li>Water quality became the responsibility of the federal government </li></ul><ul><li>Main Goal: Zero-discharge by 1985 </li></ul><ul><li>Interim Goals: </li></ul><ul><ul><li>Nation’s waters to be “fishable and swimmable” by 1983 </li></ul></ul><ul><ul><li>Elimination of toxic pollutants in amounts harmful to human activities or aquatic ecosystems </li></ul></ul>
  10. 10. Legal Definition <ul><li>Federal Clean Water Act (§402) defines a &quot;point source&quot; to mean: </li></ul><ul><li>&quot;any discernable, confined and discrete conveyance, including but not limited to any pipe, ditch, channel, tunnel, conduit, well, discrete fissure, container, rolling stock, concentrated animal feeding operation, or vessel or other floating craft, from which pollutants are or may be discharged.&quot; </li></ul><ul><li>Ferrey, S. (2007). Environmental Law: Examples & </li></ul><ul><li>Explanations . New York: Aspen Publishers. </li></ul>
  11. 11.   Three Major Sources of Point Source Water Pollution
  12. 12. Regulators of Point Source Water Pollution <ul><li>10 Regional EPA Offices </li></ul><ul><li>State Departments of Environmental Quality </li></ul><ul><li>POTWs </li></ul><ul><li>Citizens??? </li></ul>
  13. 13. Regulator Hierarchy
  14. 14. Regulations for Point Sources <ul><li>National Pollutant Discharge Elimination System (NPDES) </li></ul><ul><ul><li>Requires permits for all significant dischargers of wastewater into surface waters </li></ul></ul><ul><ul><li>Permits state effluent discharge limits (kg of pollutant per day) </li></ul></ul>
  15. 15. Discharge Requirements for POTWs <ul><li>Limitations on pollutants in both wastewater and sludge </li></ul><ul><ul><li>Toxic pollutant limitations </li></ul></ul><ul><ul><li>Criteria on acceptable uses for sludge </li></ul></ul><ul><ul><li>Removal efficiency requirements </li></ul></ul><ul><ul><li>Operating requirements for effective operation and maintenance </li></ul></ul>
  16. 16. Discharge Requirements for Industrial Facilities- Direct dischargers <ul><li>Technology-based standards </li></ul><ul><ul><li>Best Practicable Technology (BPT)-by 1977 </li></ul></ul><ul><ul><li>Best Available Technology (BAT)-by 1983 </li></ul></ul><ul><ul><li>New Source Performance Standards </li></ul></ul>
  17. 17. Example of BPT Regulations for Direct Discharger Resources for the Future, Harrington 2003
  18. 18. Example of BPT regulations for direct discharger (continued) Resources for the Future, Harrington 2003
  19. 19. Discharge Requirements for Industrial Facilities- Indirect dischargers <ul><li>Technology-based Standards </li></ul><ul><ul><li>Pretreatment guidelines </li></ul></ul><ul><ul><ul><li>Established to deal with a number of problems associated with industry discharging through POTWs </li></ul></ul></ul><ul><ul><ul><li>Guidelines for both new and existing sources </li></ul></ul></ul><ul><li>Note: In this case, POTWs have two roles— </li></ul><ul><li>1) Regulator </li></ul><ul><li>2) Service provider </li></ul>
  20. 21. Major Pollutants
  21. 22. Major Pollutants Cont.
  22. 23. Major Pollutants Cont.
  23. 24. Human Health
  24. 25. Damages <ul><li>Heavy metals from industrial processes </li></ul><ul><ul><li>toxic to aquatic life </li></ul></ul><ul><li>Toxic compounds from industrial waste </li></ul><ul><ul><li>damage the health of aquatic animals and those who eat them </li></ul></ul><ul><ul><li>toxins can affect the reproductive success </li></ul></ul><ul><li>Microbial pollutants (from sewage): </li></ul><ul><ul><li>Increases number of infectious diseases </li></ul></ul><ul><ul><li>Increases the number of mortalities </li></ul></ul>
  25. 26. Damages Cont. <ul><li>Organic matter and nutrients </li></ul><ul><ul><li>Increases in aerobic algae, which depletes oxygen from the water column </li></ul></ul><ul><li>Sulfate particles </li></ul><ul><ul><li>Changes the pH </li></ul></ul><ul><ul><li>Damages health </li></ul></ul><ul><ul><li>Increases the number of mortalities within an environment </li></ul></ul><ul><li>Suspended particles </li></ul><ul><ul><li>Reduces amount of sunlight penetrating the water </li></ul></ul><ul><ul><li>Disrupts the growth of photosynthetic plants and micro-organisms </li></ul></ul>
  26. 28. Wastewater treatment technologies <ul><li>POTWs: Publicly Owned Treatment Works </li></ul><ul><ul><li>Septic tanks, on-site wastewater treatment </li></ul></ul><ul><ul><li>sewage treatment plants </li></ul></ul><ul><ul><ul><li>advanced treatment: </li></ul></ul></ul><ul><ul><ul><ul><li>aerobic/ anaerobic treatment, nitrification/denitrification, phosphorus removal, granular activated carbon absorbtion, rapid sand filtration, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>UV disinfection, ozone disinfection, chlorine disinfection </li></ul></ul></ul></ul><ul><ul><ul><ul><li>wastewater reuse, land application of biosolids </li></ul></ul></ul></ul><ul><li>Combined Sewer Overflows </li></ul><ul><li>Industrial Facilities </li></ul>
  27. 29. Wastewater Treatment System <ul><li>Water from households, industry, streets flow into the sewer POTWs </li></ul><ul><li>Sewage treatment at the POTWs </li></ul><ul><ul><li>Primary treatment (settling/sedimentation) </li></ul></ul><ul><ul><li>Secondary treatment (biological treatment) </li></ul></ul><ul><ul><li>Tertiary treatment (advanced Treatment) </li></ul></ul><ul><li>Water Environment Federation </li></ul><ul><li>Go with the Flow! </li></ul>
  28. 30. Wastewater treatment coverage Japan Sweden Holand Germany Canada U.S. U.K. Wastewater treatment Advanced wastewater treatment Population coverage rate of advanced wastewater treatment plants in various countries. Population coverage rate of wastewater treatment plants.
  29. 31. Combined Sewer Overflow (CSO) Management Technologies <ul><li>Combined Sewer Systems: </li></ul><ul><ul><li>single pipe sewer systems that convey sanitary wastewaters and storm water runoff to a publicly owned treatment works </li></ul></ul><ul><li>CSO affects the environment and human health: </li></ul><ul><ul><li>CSOs may contain high suspended solids, BOD, oil and grease, flotables, toxic pollutants, pathogenic microorganisms </li></ul></ul>
  30. 32. CSO management <ul><li>Proper operation and regular maintenance (O&M) </li></ul><ul><ul><li>Routine inspections, maintenance and cleaning of CSS. </li></ul></ul><ul><ul><li>O&M reporting, record keeping systems, reviewing, up-dating, and revising </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><li>Pipe separation </li></ul><ul><li>Water flow control </li></ul>Source: Kentucky Division of Water
  31. 33. Industrial Wastewater Treatment <ul><li>Agricultural and Food Industry </li></ul><ul><li>Iron and Steel Industry </li></ul><ul><li>Organic chemical Industry (pharmaceuticals, pesticides, plastics, detergents, etc.) </li></ul><ul><li>Mining Industry </li></ul><ul><li>Paper Mills </li></ul>
  32. 34. Agricultural Wastewater <ul><li>Aerobic & Anaerobic Lagoons </li></ul><ul><li>Land Spreading </li></ul><ul><li>Constructed Wetlands </li></ul><ul><li>High Nutrient </li></ul><ul><ul><li>Nitrogen, Phosphorus </li></ul></ul><ul><li>Solids </li></ul><ul><li>Antibiotics </li></ul><ul><li>Pathogenic bacteria </li></ul><ul><li>Parasites </li></ul><ul><li>Synthetic hormones </li></ul><ul><li>Organic matters </li></ul>Treatment
  33. 35. Livestock waste management
  34. 40. Technology? Nature , 2003, July 3rd issue
  35. 41. <ul><li>The process of internalizing externalities to improve overall social welfare. </li></ul>
  36. 42. <ul><li>Nitrogen </li></ul><ul><li>Phosphorus </li></ul><ul><li>Ammonia </li></ul><ul><li>BOD </li></ul><ul><li>COD </li></ul><ul><li>pH </li></ul><ul><li>Selenium </li></ul><ul><li>Water flow </li></ul><ul><li>Temperature </li></ul><ul><li>TSS </li></ul><ul><li>Heavy metals </li></ul>Source: Pharino C. 2007. Sustainable Water Quality management Policy, Springer Netherlands.
  37. 43. Direct Methods <ul><li>Command-and-Control: </li></ul><ul><ul><li>Quantity based regulation: Quotas w/o trading </li></ul></ul><ul><ul><li>Technology-based regulation </li></ul></ul><ul><ul><ul><li>Best Available Technology (BAT) </li></ul></ul></ul><ul><li>Grandfathering </li></ul><ul><li>Subsidizing Pollution Abatement </li></ul><ul><li>Taxes </li></ul>
  38. 44. Indirect Methods <ul><li>Permits and trading (Marginal Abatement Cost = forgone profits or rent) </li></ul><ul><ul><li>Credit trading, cap-and-trade, one-time or ongoing offset program </li></ul></ul><ul><li>Problems: </li></ul><ul><ul><li>Failure due to insufficient market </li></ul></ul><ul><ul><ul><li>Few traders </li></ul></ul></ul><ul><ul><ul><li>large trader ratio (buyers: consumers, or consumers: buyers) </li></ul></ul></ul><ul><ul><li>Size of watershed </li></ul></ul><ul><ul><li>Hoarding, over allocation of permits </li></ul></ul><ul><ul><li>Reluctance to trade with competition </li></ul></ul><ul><ul><li>Insufficient division of property rights </li></ul></ul>
  39. 45. Tradable Permits <ul><li>Bilateral negotiation : buyer and seller exchange information and negotiate the terms </li></ul><ul><ul><li>High initial costs to establish infrastructure for communication and enforcement </li></ul></ul><ul><ul><li>Banking and borrowing </li></ul></ul><ul><ul><li>Third party broker </li></ul></ul><ul><li>Water Quality Clearinghouse : converts production with variable price and quality into a uniform product </li></ul><ul><ul><li>Reduces search and information costs </li></ul></ul><ul><ul><li>Eliminates all contractual or regulatory links between sellers and buyers </li></ul></ul><ul><ul><li>Reduces uncertainty </li></ul></ul><ul><ul><li>Publicly visible and standardized practices allow for reduced costs with bargaining and negotiation </li></ul></ul>
  40. 46. Transaction Costs <ul><li>Research and information </li></ul><ul><li>Bargaining and decision </li></ul><ul><li>Monitoring and enforcement </li></ul><ul><ul><li>Unidirectional vs. multidirectional </li></ul></ul><ul><ul><li>Seller or buyer liability </li></ul></ul>
  41. 47. Sole Source Offsets <ul><li>A source is allowed to meet water quality standard at one point if pollution is reduced elsewhere, either on-site or by carrying out pollution reduction activities off-site </li></ul><ul><li>Problems </li></ul><ul><ul><li>Does not introduce any additional parties </li></ul></ul><ul><ul><li>No incentives for pollution reduction by entities that are already in compliance </li></ul></ul>
  42. 48. Methods Used <ul><li>Trading: </li></ul><ul><li>PS-PS </li></ul><ul><li>PS-NPS </li></ul><ul><li>NPS-NPS </li></ul>Source: Pharino C. 2007. Sustainable Water Quality management Policy, Springer Netherlands .
  43. 49. Approximated cost-savings from US trading programs Source: Pharino C. 2007. Sustainable Water Quality management Policy, Springer Netherlands.
  44. 50. Wisconsin Fox River <ul><li>1981: Market for BOD discharged by pulp/paper mills and municipal waste treatment plants </li></ul><ul><li>Limited trading with marketable discharge permits (6-7 plants in two clusters) </li></ul><ul><li>Flexibility in abatement options administered by the state </li></ul><ul><li>Five year permits that define waste load allocation </li></ul><ul><li>Permit negotiation for a year </li></ul><ul><li>Permits can expire </li></ul><ul><li>High transaction Costs </li></ul><ul><li>Estimated $7 million savings/year </li></ul><ul><li>Existed 6 years with one trade </li></ul>
  45. 51. Projected Increase in BOD Source: EPA, 2002. The Clean Water and Drinking Water Infrastructure Gap Analysis
  46. 53. What approaches (policy tools) could be used to implement a policy for the pollutant in question? <ul><li>Historical Trend - Control vs. incentive spectrum of politically acceptable practices: </li></ul><ul><ul><li>Started with Command-and-Control </li></ul></ul><ul><ul><li>Switched to Taxes </li></ul></ul><ul><ul><li>Tradable Permits (Kieser et al, 2002) </li></ul></ul><ul><li>Setting up marketable permits - Marketable permits are preferred lately (Woodward et al, 2002): </li></ul><ul><ul><li>A total cap on Pollution Established </li></ul></ul><ul><ul><li>Rights and Responsibilities are Allocated </li></ul></ul><ul><ul><li>Trading is Allowed to reallocate these resources among the sources </li></ul></ul>
  47. 54. Market Structure vs. Type of Program <ul><li>Incentive based programs may have different market stuctures (Pharino 2007) – market structure example from Economics section </li></ul><ul><li>Market structure is important for allocative efficiency and size of transaction costs </li></ul>As of 2007, there were 47 incentive based programs in the US, either running or at early implementation stages.
  48. 55. Type of trading vs. number of programs Are all the trading programs strictly PS to PS? Source: Pharino C. 2007. Sustainable Water Quality management Policy, Springer Netherlands.
  49. 56. Pollutant vs. Number of Programs Type of pollutant affects a choice of policy instrument Source: Pharino C. 2007. Sustainable Water Quality management Policy, Springer Netherlands.
  50. 57. Design Structure vs. Number of Programs Program Design structure determines who is in or out Source: Pharino C. 2007. Sustainable Water Quality management Policy, Springer Netherlands.
  51. 58. Numbers of trades vs. number of programs Are all the trading programs effective? Source: Pharino C. 2007. Sustainable Water Quality management Policy, Springer Netherlands.
  52. 59. <ul><li>“ The Bubble” </li></ul>
  53. 60. Political processes determine – Who gets What, When, and How? Where do the policies come from? Direct contact/Participation in Decision making Execution of Decisions/Feedback/Gov Services
  54. 61. Interested parties: Organized or Unorganized Parties/Actors <ul><li>Companies/Industry: directly affected by clean-up costs and transaction costs </li></ul><ul><ul><li>Point-source and non-point source polluters: NPS traders have a superior trading position, availability of additional places to buy savings from </li></ul></ul><ul><li>Environmental Protection Groups: Organized to protect the rights of nature and/or intra- and intergenerational justice: now vs. later (Solow, Ch. 26). </li></ul><ul><li>Citizens/publics: directly affected by effluent discharges and quality of water </li></ul>
  55. 62. Interested Parties Cont. <ul><ul><li>Levels of Government: convergence/divergence of goals and resources </li></ul></ul><ul><ul><li>Specific agencies charged with overseeing the regulation </li></ul></ul><ul><li>NGOs and civil society: advocacy for the rights of special populations or equity goals </li></ul><ul><li>Government institutions: </li></ul><ul><ul><li>division according to the branch of government, checks and balances are an important part of decision making </li></ul></ul>
  56. 64. Issues facing our POTWs Source: EPA, 2002. The Clean Water and Drinking Water Infrastructure Gap Analysis <ul><li>Aging Infrastructure </li></ul><ul><li>Increasing and Geographically Shifting Population </li></ul><ul><li>Insufficient Treatment </li></ul><ul><li>Decreased Expenditures in Water Pollution Abatement Research & Development </li></ul><ul><li>Inefficient monitoring of private septic tank systems </li></ul><ul><li>Small communities are less able to meet standards than large communities. </li></ul>
  57. 65. Capital Payment Gap <ul><li>No Revenue Growth </li></ul><ul><li>Revenue Growth </li></ul>Source: EPA, 2002. The Clean Water and Drinking Water Infrastructure Gap Analysis
  58. 66. Other Options <ul><li>Pollution Prevention </li></ul><ul><li>Pet Non-Industry Examples </li></ul><ul><ul><li>The Composting Toilet </li></ul></ul><ul><ul><li>Hoop-House Hog Farming </li></ul></ul>Source: Nature Loo
  59. 67. Savings from Pollution Prevention Source: Overcash, M., Environmental Management for the Future
  60. 68. Source: Horowitz, John., et. Al. 2006. Do Plants Overcomply with Water Pollution Regulations? The Role of Discharge Variability. Topics in Economic Analysis and Policy
  61. 69. Would Regulation Tightening Reduce Pollution? <ul><li>A 2006 study shows that plants are often polluting below standards </li></ul><ul><ul><li>Discharge Variability </li></ul></ul><ul><ul><ul><li>In a study of plants releasing BOD, plants polluted up to 60 percent below set standards </li></ul></ul></ul><ul><ul><ul><li>Discharge variability leads plants to reduce their average discharges in order to reduce their chance of violation </li></ul></ul></ul><ul><ul><li>Community Pressure </li></ul></ul><ul><ul><ul><li>Richer-type communities have higher compliance rates </li></ul></ul></ul><ul><ul><ul><li>Richer-type described as white, high income, low-manufacturing, medium population </li></ul></ul></ul>Source: Horowitz, John., et. Al. 2006. Do Plants Overcomply with Water Pollution Regulations? The Role of Discharge Variability. Topics in Economic Analysis and Policy
  62. 70. <ul><li>We would like to encourage a debate regarding the best options for future regulation in point source pollution. </li></ul>