Environmental Economics Ch 14, 15, 16 ECON 2100 Zhang

Federal Policy Goals for protecting water quality

*Zero discharge goal* - Eliminate release of all effluents into navigable waters. * Fishable-swimmable goal* - Requires that the surface waters be capable of supporting recreational activities such as swimming, fishing, etc. and the propagation of fish and wildlife. *No toxics in toxic amounts goal* - Prohibit release of toxic pollutants in toxic amounts into all water resources.

Watershed Approach

- A comprehensive framework used to coordinate the management of water resources. - Focus on the entire watershed (hydrologic cycle) instead of addressing specific a water body or an individual source. • Federal grants to fund different watershed programs. - Has funded 61 organizations with over $50 million since 2003. • Watershed-based NPDES permits are issued to multiple point sources within a watershed. • Water quality trading policy states that trading activity should occur within a watershed.

Volume-based effluent fee

- A fee based on based on the quantity of pollution discharges -hard to determine efficient fee b/c hard to determine MSB/MSC

Nonpoint Source

- A source that cannot be identified accurately and degrades the environment in a diffuse, indirect way over a relatively broad area. - Difficult to identify and difficult to control

SDWA Amendments of 1986

- Accelerated procedures fro the standard-setting process; - Provided greater protection of groundwater sources of drinking water; - Banned the use of lead in public drinking water systems.

SDWA Amendments of 1996

- Add risk assessment and benefit-cost analysis to standard- setting procedures; - Establish a federal fund (DWSRF) to finance infrastructure improvements; - Promote pollution prevention (P2) through source water protection and better management.

Use-support status

- Assess the water body's present condition - Compare to what is needed to maintain its designated uses - Good: fully supporting designated uses - Threatened: fully supporting designated uses, but where declining water quality is indicated - Impaired: not supporting one or more designated uses problems: The states can set their own "receiving water quality standards" and they are not required by law to conduct benefit-cost analysis. - Standards are not consistent with technology-based effluent limits set at the federal level

1974, Safe Drinking Water Act (SDWA)

- Authorize EPA to set standards - Shift responsibility of protecting drinking water from the Public Health Service to EPA)

Federal Water Pollution Control Act (FWPCA1972) in 1972

- Guides much of today's policy - Main responsibility for water quality shifted to the federal level - Specific national goals for water quality were established - New technology-based effluent limitations were set by EPA

Water Quality Act of 1987 (A renamed version of CWA)

- More deadline extensions - Required states to set up programs for nonpoint sources - Replaced a federal grant program for publicly owned treatment works with a state loan program - No formal reauthorization passed since 1987

Other specific water quality legislations

- Ocean Dumping Ban Act - Oil Pollution Act of 1990 - Beaches Environmental Assessment and Coastal Health Act - Great Lakes Legacy Act

Maximum contaminant level goal (MCLG)

- Part of SDWA defines the level of a contaminant at which no expected adverse health effects occur. It allows adequate margin of safety. It is not an enforceable standard.

Technology based effluent limitations

- Uniform pollution standards to control discharges from point sources to surface water based primarily on technological capability. - A chief control instrumental policy - All point sources are subject to this effluent limitations. - Polluters are allowed to choose the method by which the limit is achieved. - As technology advances, the standards are to be revised. - Over time the intent is to meet the zero discharge goal.

Flat rate (price growth rate) pricing scheme (or uniform rate)

- Water price increases with higher water use; but it increases at a constant rate

Flat fee (price) pricing scheme

- Water price is independent of water use

National Pollutant Discharge Elimination System (NPDES)

-A permit system that controls effluent releases from direct industrial dischargers and public owned treatment works. - This system prohibits any discharges into navigable waters without a NPDES permit. - The permits controls precisely what the limitations are and how to monitor and report the releases. NOT TRADEABLE PERMIT

Point Source

-Any single identifiable source from which pollutants are released, such as a factory smokestack, a pipe, or a ship.

Pollutant-based effluent fee

-Based on the degree of harm associated with the contaminant being released. The fee is higher if the contaminant is more harmful.

Water quality criteria

-Biological and chemical attributes to achieve and sustain the designated uses -These standards are pollutant specific; can be numeric criteria, narrative criteria, or bio-criteria.

Clean Water Act (CWA) of 1977

-Extended compliance deadlines of FWPCA and strengthened the law on toxic water pollutants

Federal Water Pollution Control Act (FWPCA1948) in 1948

-First legislation on water - Federal responsibility on water quality control was limited, provided opportunities to research, set suggestion standards more than laws

Pollution charges

-Follow the "Polluter pays principle" and internalize the negative externality

Priority contaminants

-Pollutants for which drinking water standards are to be established based on specific criteria.

DWSRF - Drinking Water State Revolving Fund

-President Clinton signed the DWSRF ( 1 billion per year) in 1996

Declining Block Pricing (variable rate)

-Price falls as Quantity (use) rises -Water utilities tend to have high fixed costs and relatively low variable costs. -In an attempt to recover fixed costs and encourage economies of scale. -From society's point of view, cause water overconsumption.

Increasing Block Pricing

-Price rises as Quantity (use) rises -Provides incentive for water conservation. -Government should promote on this water pricing strategy for the water conservation consideration.

Maximum contaminant level (MCL)

-Standard of SDWA; the highest contaminant level permitted. It is enforceable.

Receiving water quality standards

-State-established standards have two components: Use designation for the water body and Water quality criteria to sustain the designated uses.

Hydrologic cycle

-The natural movement of water from the atmosphere to the surface, beneath the ground, and back to the atmosphere.

Surface water categories

1. Open ocean waters 2. Ocean coastal waters 3. Bays and estuaries 4. Inland waters 5. Wetlands

Nonpoint Source Management Program

1. Prepare reports in which they identify waters that cannot achieve water quality standards without action taken toward nonpoint sources and identify sources responsible; 2. Develop programs to reduce pollution from every identified category, subcategory, or individual nonpoint source; • Best Management Practices (BMP): strategies other than effluent limitations to reduce pollution from nonpoint sources. 3. Implement the BMP programs over a multiyear time period. State controlled, funded w federal grants

Types of point sources

1. Publicly owned treatment works (POTW), which treat wastewaters flowing through sewer systems 2. Industrial facilities, such as factories, mills, or other physical plants 3. Combined sewer systems, which carry sewage and storm water runoff to waste treatment plants

Toxic pollutants

A contaminant that, upon exposure will cause death, disease, abnormalities, or physiological malfunctions. -65 toxic pollutants named in Clean Water Act

Non-conventional pollutants

A default category for pollutants not identified as toxic or conventional.

Conventional pollutants

Any identified pollutant that is well understood by scientists, such as organic waste, sediment, bacteria, nutrients, oil, or heat. -Biochemical oxygen-demanding substances (BOD), suspended solids, fecal coliform, and PH (hydrogen measure)

Drinking Water Strategy (DWS)

EPA formed Drinking Water Strategy (DWS) under the Obama administration. • 4 goals under this strategy *- Address contaminants as a group rather than one at a time - Support the development of new technologies to address health risks - Use the authority of multiple statutes to protect drinking water - Partner with states to develop shared access to all public water systems monitoring data* SDWA is more focused than the general Clean Water Act. SDWA define, monitor, and enforce tougher standards to ensure potability (potability means the tap water being safe for human consumption). SDWA does rely on CWA to achieve a baseline level of water quality and to control effluents of polluting sources SDWA regulates any physical, biological, or radiological substances in drinking water that may threaten human health and welfare. 83 contaminants listed in 1986 SDWA New contaminants are added from a list of priority contaminants.

Secondary Standards

Established to protect public welfare -aka Secondary Maximum Contaminant Level (SMCL); - National Secondary Drinking Water Regulations (NSDWRs): National standards for public drinking water that serve as guidelines to protect welfare. - Are not enforceable by the federal government; • Are not uniformly implemented; vary with geographic or other conditions.

Two types of drinking water

Public drinking water (tap water) is regulated by EPA - Bottled water is regulated by FDA - FDA must adopt EPA's public drinking water standards

Product charges

Since the pollutant release of nonpoint source is indeterminate, product charge is imposed indirectly. -ex. tax on fertilizer, not high enough, not elastic enough

Primary Standards of SDWA

Standards set to protect human health - National Primary Drinking Water Regulations (NPDWRs): National health standards for public drinking water that are implemented uniformly.

Tradable effluent permit markets

The market can be established using credits or allowance. - Credits are issued if a polluter discharges less than what is permitted by law. - Allowances are issued up front and give the bearer the right to release pollutant in the future. -can be established for point and no point sources, not very effective

Use Designation

the intended purpose of a water body - Irrigation? Navigation? Recreation? Public water supply?

Best available technology (BAT)

the treatment technology suggested by SDWA that makes the attainment of MCL feasible, accounting for cost considerations.

effluent limitations

• New sources must meet standards based on BADCT: Best Available Demonstrated Control Technology (most stringent) • Existing sources must meet two sets of standards: • those based on BCT: Best Conventional control Technology for conventional pollutants • those based on BAT: Best Available Technology economically achievable for nonconventional and toxic pollutants