Energy Futures and Urban Air Pollution Challenges for China and the United States (2008) / Chapter Skim
Currently Skimming:
4 Institutional and Regulatory Frameworks
4 Institutional and Regulatory Frameworks
Pages 113-160
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 113... ...
The following chapter traces the progression of AQM in each country and explains the roles of current institutions and regulatory frameworks. It will detail the related roles of research institutions and non-governmental organizations (NGOs)
|
From page 114... ...
The National Air Pollution Control Administration was created within
|
From page 115... ...
When combined with researchers at EPA's Office of Research and Development (ORD) , nearly 4,000 EPA employees work specifically on issues of air quality. The 1970 CAA amendments authorized the new EPA to set National Ambient Air Quality Standards and required states to develop and implement plans to meet them.
|
From page 116... ...
(CAA) created standards required for urban areas with severe pollution 1970 1990 2003 EPA created; CAA CAA US Senate votes to extended and National Amendments roll back NSR; Ambient Air Quality propose emissions Clear Skies Act Standards (NAAQS)
|
From page 117... ...
INSTITUTIONAL AND REGULATORY FRAMEWORKS 117 FIGURE 4-2 Organizational chart of EPA Office of Air and Radiation.
|
From page 118... ...
These include both direct enforcement actions against sources that are violating provisions of the CAA, and sanctions against states that fail to attain the standards by established deadlines, or states that fail to comply with other statutory requirements, including requirements to develop and administer the construction and operating permit programs for stationary sources, enforce permit limits, monitor air quality, and track emissions. State and local governments, environmental groups, and industry associations in the United States commonly use these provisions to seek the review of rules that EPA has developed, and to force the agency to undertake duties that Congress has assigned to it by statute.
|
From page 119... ...
, was set up in 1974 under the State Council, which was formed to coordinate environmental protection at the national level. Since then, the institutions for environmental protection have developed and undergone changes several times (see timeline, Figure 4-3)
|
From page 120... ...
Earlier approaches based on point-source pollution controls were insufficient to improve regional environmental quality; thus Chinese leaders established the goal of moving toward integrated regional pollution control (Qu, 1991)
|
From page 121... ...
Administration (SEPA) FIGURE 4-3 Timeline of air quality and energy regulation trends in China.
|
From page 122... ...
SEPA is the cognizant environmental protection administration agency under the State Council, whose task it is to exercise overall supervision and administration over the country's environmental protection work. The people's governments at the provincial, city, and county levels have also successively established environmental protection administration departments to carry out overall supervision and administration of the environmental protection work in their localities (Figure 4-4)
|
From page 123... ...
The Chinese government regards industrial pollution prevention and control as the focal point of environmental protection. China's strategy in this regard is undergoing a major departure from the past, shifting from end-of-pipe solutions to comprehensive controls, from pollution concentration regulation to total pollutant
|
From page 124... ...
Technology Policy and Cooperation •Division of Legislation Supervision (2) Standards •Division of Air and •Division of Research •Division of International •Division of Noise Pollution •Division of Reactors •Division of Human Cooperation on Nuclear Administrative Penalty Control Environmental Health Safety and Review •Division of Nuclear Inspection Materials Mgmt Responsible for •Division of Nuclear Responsible for Responsible for Responsible for organizing Power Equipment establishing ambient formulating national formulating pollution implementation of and emissions environmental levies; oversees environmental laws standards protection laws enforcement as well and regulations FIGURE 4-5 Departments within SEPA responsible for energy and air quality issues.
|
From page 125... ...
. AIR QUALITY REGULATORY MECHANISMS United States Standard Setting and Implementation Under the CAA, efforts to reduce air pollution in the United States begin with the specification of National Ambient Air Quality Standards (NAAQS)
|
From page 126... ...
The 1970 CAA amendments required automobile manufacturers to reduce light-dutyvehicle emissions of hydrocarbons and carbon monoxide emissions by 90 percent by 1975, and to reduce nitrogen oxides emissions by 90 percent by 1976. The 1977 CAA extended the deadlines for these reductions to be achieved, and reduced the stringency of the requirement for nitrogen oxides -- but the standards were ultimately met and surpassed.
|
From page 127... ...
Cap-and-Trade Programs The 1990 CAA amendments adopted a major innovation in the regulation of air pollution from stationary sources, allowing the trading of sulfur dioxide emissions credits, subject to a national cap. The primary objective of this program was to cost-effectively mitigate acid rain caused by sulfur dioxide emissions from power plants.
|
From page 128... ...
This program capped emissions on a state-by-state basis, and allowed, but did not require, states to achieve compliance through emissions trading. In March 2005, EPA finalized a cap-and-trade program for sulfur dioxide and nitrogen oxides, which is designed to further limit emissions of these two pollutants from power plants in the eastern United States, and thus is designed to address interstate transport contributions to fine PM and ozone pollution. This program, known as the Clean Air Interstate Rule, is being challenged in court primarily by industry groups, cities, and state agencies, who object to the way emissions allocations were granted, or to the inclusion of certain areas in the program. Also in 2005, EPA finalized a cap and trade program for mercury emissions from power plants.
|
From page 129... ...
. The 1990 CAA amendments required the installation of CEMs for SO2 and NOx at power plants participating in the acid rain program.
|
From page 130... ...
. Examples of successful trading programs in the United States include: • The acid rain SO2 emissions trading program -- which has served as the paradigm for many United States cap-and-trade-programs • NOx emissions trading programs, including the South Coast Air Quality Management District program in Southern California • The Northeast O3 Transport Region NOx Budget Trading Program • The NOx SIP Call Trading Program A closer examination of the SO2 trading program indicates that its success appears to be the result of a combination of factors, specifically: • Substantial emission reductions -- the mandated 50 percent reduction en sured that regional trading did not result in areas of emission increases • Simplicity -- a clear cap and few restrictions on implementation • Effective monitoring -- CEM systems aided compliance assurance, mitigat ing disputes between environmental advocates and the regulated industries • Transparency -- EPA's allowance tracking system promptly updated trans actions and emissions data, lending transparency to the process • Certain penalties -- non-compliance led to financial penalty plus a loss of a llowances for the subsequent year • Opportunity for banking allowances -- firms were able to insure against a dverse conditions; this also led to ‘buy-in' by regulated parties, because banking gave them an asset whose value depended on a stable and successful program.
|
From page 131... ...
EPA's enforcement arm can levy civil penalties of up to $27,500 per violation per day for non-compliance with stationary source requirements. EPA also enforces fuel and motor vehicle emissions standards; it recently announced a $94 million settlement with DaimlerChrysler for defective catalytic converters and for on-board diagnostic systems on the company's1996 through 2001 model year vehicles. Criminal penalties, including jail sentences, are available in case of serious environmental violations.
|
From page 132... ...
Additionally, canonical documents can be issued by the State Council and by responsible administrative departments. China pays great attention to environmental legislative work, and has now established an environmental statutory framework that takes the Constitution of the PRC as the foundation, and the Environmental Protection Law of the PRC as the main body of its environmental legislation.
|
From page 133... ...
Local EPBs must then examine and approve these declarations before January 15 of the next year. The pollutant discharge fee must be included in the EPB's budget, managed as a special fund for environmental protection, and mainly used for allocating grants and subsidies for the pollution prevention and control projects of including regional control, technology development and demonstrations, application of new processes, and various control projects set forth by the State Council.
|
From page 134... ...
In 2006, high levels of air pollution and smog in Hong Kong focused much public attention on the need to finalize a plan for the Pearl River Delta region. The State Council issued a document at the end of 2005 calling for a strength ening of environmental protection, using the cap-and-trade system.
|
From page 135... ...
Apart from publicizing the evaluation results through major media, SEPA has also published the Annual Report on Urban Environmental Management and Comprehensive Urban Environmental Control of Key Cities for Environmental Protection.
|
From page 136... ...
to evaluate ambient air quality (Table 4-1)
|
From page 137... ...
The National Air Toxics Program includes maximum achievable control technology standards, residual risk standards, area source standards, mobile source rules, the utility mercury reductions rule, local-scale projects, and the Great Waters project. The PM Supersites program is a research program that monitors ambient air and provides valuable data for the benefit of human health, exposure research, and the atmospheric sciences community.
|
From page 138... ...
Additionally, the Air Pollution Control Equipment Selection Guide has a primer on air pollution control, followed by listings for technologies such as biofilters, electrostatic precipitators, and fluidized bed scrubbers. Other useful information on control technologies can be found at the air pollution control equipment retailer page and the Air Pollution Control Equipment Selection Guide.
|
From page 139... ...
For some major environmental research subjects the Chinese government has formulated corresponding research programs and plans for environmental protection, while organizing forces to tackle key scientific and technological problems. Additionally, China has expanded its research into comprehensive prevention and control of regional environmental pollution, environmental background values and environmental capacity, pollution control technology, and global environmental problems.
|
From page 140... ...
. An ambient air quality daily report is issued according to China's API (see Table 4-1)
|
From page 141... ...
Forty-two additional environmental protection key cities began issuing ambient air quality daily reports in June 2000, including 32 provincial capitals, municipalities directly under the Central Government and municipal capitals, ten coastal cities, and key tourist destinations. In June 2001, they were joined by 47 more key cities.
|
From page 142... ...
are most often funded by dues assessed to their members. Alongside environmental and public health organizations, these industry groups are entitled to have their views heard as regulations are developed, and to utilize the citizen suit provisions of the Administrative Procedures Act and the CAA to gain judicial review of EPA's compliance with their provisions.
|
From page 143... ...
The 1996 State Council Decision Concerning Certain Environmental Issues signaled a turning point, strongly encouraging both the media and citizens to expose illegal actions that caused environmental damage. By the late 1990s, the media and environmental NGOs had become increasingly influential.
|
From page 144... ...
, but also includes regional environmental science institutes, environmental protection industrial associations, and some wildlife conservation societies. The second type consists of the independently established organizations, which are registered in civil departments.
|
From page 145... ...
Among these, 1,382 are government-sponsored environmental NGOs, accounting for 50 percent; 1,116 are university student associations and its union, accounting for 40 percent; 202 are independently established environmental NGOs, accounting for 7 percent; and 68 are international environmental NGOs with a regional office in China, accounting for slightly less than 3 percent (ACEF, 2006)
|
From page 146... ...
Again, environmental groups, industry groups, and state and local governments commonly seek judicial review to challenge environmental regulations that they dislike. The CAA provides explicitly for citizen suits to challenge final actions by the EPA.
|
From page 147... ...
to ease environmental regulations for the sake of economic development. This further compromises enforcement efforts; 4-6 EPBs, though guided by national local standards, ultimately answer to the local government, and economic growth still tends to trump local environmental concerns.
|
From page 148... ...
. ENERGY POLICY AND THE RELATION TO AIR QUALITY Although energy and air quality are inextricably linked, energy policy and air quality policy are not consistently developed together.
|
From page 149... ...
FERC reviews and approves proposals for siting oil and natural gas pipelines, hydroelectric projects, and energy storage facilities. EPA also works with DOE on issues related to energy policy.
|
From page 150... ...
150 TABLE 4-2 The Total Cost of Federal Incentives for Energy Development Through 2003 (billions of 2003 dollars) Nuclear Hydro Coal Oil Natural Gas Renewables Geothermal TOTAL Percent Research and Development 60.6 1.2 27.3 6.7 5.6 16.4 2.9 120.7 18.7 Regulation 9.9 4.1 6.2 106.1 2.9 0 0 129.2 20.1 Taxation 0 10.5 26.7 155.4 75.6 11.7 1.4 281.3 43.7 Disbursements -8.3 1.4 6.4 2.1 0 1.5 0 3.1 0.5 Government Services 1.2 1.3 12.6 27.2 1.3 1.7 0 45.3 7.0 Market Activity 0 54.1 1.7 4.5 1.7 1.3 1.4 64.7 10.0 TOTAL 63.4 72.6 80.9 302.0 87.1 32.6 5.7 644.3 Percent 9.8 11.3 12.6 46.9 13.5 5.1 0.9 100 SOURCE: Management Information Services, Inc., 2006.
|
From page 151... ...
One example of this policy relates to the oil and gas industries, which have utilized the percentage depletion and intangible drilling provisions of the federal tax code as an incentive for exploration and development. Federal tax credits and deductions have also been utilized to encourage the use of renewable energy.
|
From page 152... ...
When governments artificially lower energy prices by regulation or subsidies to make them more affordable for consumers, demand and, consequently, the resulting environmental emissions can increase, particularly in countries without modern pollution control equipment and regulations. From the 1930s until the 1980s, most of the interstate natural gas industry was highly regulated in the United States.
|
From page 153... ...
350 300 250 Natural Gas #2 Distillate 200 Motor Gasoline Electricity 150 Coal 100 50 97 98 00 04 05 99 03 95 96 01 02 19 19 19 20 20 20 19 19 20 20 20 FIGURE Box 4-5 Indices of selected energy price levels in the United States, 1995-2005 (1995 = 100)
|
From page 154... ...
The Energy Policy Act of 2005 established energy research and development programs covering energy efficiency, renewable energy, oil and gas, coal, Indian tribal energy, nuclear matters and security, vehicles and motor fuels (including ethanol) , hydrogen, electricity, energy tax incentives, hydropower and geothermal energy, and climate change technology.
|
From page 155... ...
Among its responsibilities, the NDRC is tasked with developing a strategy for sustainable development, including cleaner power production and pollution prevention. The State Bureau of Quality and Technical Standards (SBQTS)
|
From page 156... ...
The government is also working to incorporate approaches taken by other countries, such as the United States in its Energy Policy Act of 2005. Cleaner Production Promotion Law The Standing Committee of the NPC c reated the Cleaner Production Promotion Law in June 2002.
|
From page 157... ...
Vehicle Pollution Controls Under Chinese law, as in most countries of the world, controlling emissions from new vehicles is the responsibility of the national government, specifically SEPA. Local governments can petition the State Council to allow earlier introduction of the national standards, but only after SEPA has adopted them.
|
From page 158... ...
However, most if not all other I/M programs in the country remain quite weak with only limited improvements in a few cities such as Shanghai. Some cities have also started clean vehicle campaigns, actively promoting the use of low-pollution vehicles fueled by natural gas and liquefied petroleum gas.
|
From page 159... ...
Changchun: Jilin People's Publishing House. SCIO (The State Council Information Office)
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.