point source water pollution

Melissa Enoch Madoka Yoshino Leslie Tomic Temirlan Moldogaziev Courtney Bonney

V625 Environmental Economics2 April 2008

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

In your opinion, is clean water a…?

Right

54%

PrivilegeNeither

26%17%

Who do you believe should be responsible forfunding the necessary improvements to the nation’s

water and wastewater infrastructure?

FederalGovernment

54%

LocalRatepayers

Both

21%20%

The Luntz Survey (2004)

Why Regulate Point Source?Increased public interest due to visibilityEasy to locate source and monitorDifficulty/cost of cleaning up polluted groundwater

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

EPA reports that more than one-third of the nation's waters are still not meeting water quality standards,however, non-point source pollution has been

identified as the primary cause.

The Push Towards Clean Water legislation

The Cuyahoga River June 23, 1969• Other fires: 1962, 1952, 1948, 1941, 1936, 1922, 1912, 1887, 1883, 1868.

• 1952 fire caused $1.5 million in damages

• In 1968 Cleveland passed a $100 millon bond issue for clean up; 60% of what the US Gov’t paid for nationwide cleanup efforts

Photograph by Carol Brown, 1952

History of Sewage TreatmentSewer (Sewage pipe): since 5000 years ago19th C: Cholera and water borne disease threats

public health for increased wastewater into open sewers.

20th C: The first sewage treatment plant using biological process built in the UK.

1920s: Sludge dumping to the ocean began1992: Ocean dumping of activated sludge ban in

effect.? ; EPA mandated all wastewater through POTWs

to receive at least secondary treatmenthttp://www.cqs.com/

sewage.htm

The Clean Water Act of 1972

Clean Water Act of 1972Water quality became the responsibility of

the federal governmentMain Goal: Zero-discharge by 1985Interim Goals:

Nation’s waters to be “fishable and swimmable” by 1983

Elimination of toxic pollutants in amounts harmful to human activities or aquatic ecosystems

Legal DefinitionFederal Clean Water Act (§402) defines a "point

source" to mean:

"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."

Ferrey, S. (2007). Environmental Law: Examples &Explanations. New York: Aspen Publishers.

Three Major Sources of Point Source Water Pollution

Regulators of Point Source Water Pollution10 Regional EPA OfficesState Departments of Environmental QualityPOTWsCitizens???

Regulator Hierarchy

Regulations for Point SourcesNational Pollutant Discharge Elimination

System (NPDES)Requires permits for all significant dischargers

of wastewater into surface watersPermits state effluent discharge limits (kg of

pollutant per day)

Discharge Requirements for POTWsLimitations on pollutants in both wastewater

and sludgeToxic pollutant limitationsCriteria on acceptable uses for sludgeRemoval efficiency requirementsOperating requirements for effective operation

and maintenance

Discharge Requirements for Industrial Facilities- Direct dischargersTechnology-based standards

Best Practicable Technology (BPT)-by 1977Best Available Technology (BAT)-by 1983New Source Performance Standards

Example of BPT Regulations for Direct DischargerTable 1. BPT Regulations for the Dairy Point Source Category

BOD 30-day standard, large facilities (kg per 1000 kg of BOD5 input)

Receiving Stations 0.190

Fluid Products 1.350

Cultured Products 1.350

Butter 0.550

Cottage Cheese and Cultured Cream Cheese

2.680

Natural and Processed Cheese 0.290

Fluid Mix for Ice Cream and Other Frozen Desserts

0.880

Ice Cream, Frozen Desserts, and Dairy Desserts

1.840

Condensed Milk 1.380

Dry Milk 0.650

Condensed Whey 0.400

Dry Whey 0.400

Resources for the Future, Harrington 2003

Example of BPT regulations for direct discharger (continued)

Other limits

To get the limits in each subcategory for the standards below,

Multiply the number above by

Large facility BOD one-day maximum discharge

2.5

Large facility TSS 30-day average 1.5

Large facility TSS one-day maximum discharge

3.75

Small facility BOD 30-day average 1.67

Small facility BOD one-day maximum discharge

3.33

Small facility TSS 30-day average 2.5

Small facility TSS one-day maximum discharge

5

pH limitation, all plants 6.0 to 9.0

Resources for the Future, Harrington 2003

Discharge Requirements for Industrial Facilities- Indirect dischargersTechnology-based Standards

Pretreatment guidelines Established to deal with a number of problems

associated with industry discharging through POTWs

Guidelines for both new and existing sources

Note: In this case, POTWs have two roles—1) Regulator 2) Service provider

Major Pollutants

http://www.epa.gov/safewater/mcl.html

Major Pollutants Cont.

http://www.epa.gov/safewater/mcl.html

Major Pollutants Cont.

http://www.epa.gov/safewater/mcl.html

Human Health

www.epa.gov/safewater

Damages• Heavy metals from industrial processes

• toxic to aquatic life

• Toxic compounds from industrial waste• damage the health of aquatic animals and

those who eat them• toxins can affect the reproductive success

• Microbial pollutants (from sewage):• Increases number of infectious diseases• Increases the number of mortalities

Damages Cont.• Organic matter and nutrients

• Increases in aerobic algae, which depletes oxygen from the water column

• Sulfate particles• Changes the pH

• Damages health

• Increases the number of mortalities within an environment

• Suspended particles• Reduces amount of sunlight penetrating the water

• Disrupts the growth of photosynthetic plants and micro-organisms

Wastewater treatment technologiesPOTWs: Publicly Owned Treatment Works

Septic tanks, on-site wastewater treatmentsewage treatment plants

advanced treatment: aerobic/ anaerobic treatment,

nitrification/denitrification, phosphorus removal, granular activated carbon absorbtion, rapid sand filtration,

UV disinfection, ozone disinfection, chlorine disinfection

wastewater reuse, land application of biosolids

Combined Sewer OverflowsIndustrial Facilities

http://www.epa.gov/OW-OWM.html/mtb/mtbfact.htm

Wastewater Treatment SystemWater from households, industry, streets

flow into the sewer POTWsSewage treatment at the POTWs

Primary treatment (settling/sedimentation)Secondary treatment (biological treatment)Tertiary treatment (advanced Treatment)

Water Environment Federation Go with the Flow!

http://wef.org/apps/gowithflow/theflow.htm

Wastewater treatment coverage

JapanSwedenHolandGermanyCanada U.S. U.K.

Wastewater treatmentAdvanced wastewater treatment

Population coverage rate of advanced wastewater treatment plants in various countries.

Population coverage rate of wastewater treatment plants.

Combined Sewer Overflow (CSO) Management TechnologiesCombined Sewer Systems:

single pipe sewer systems that convey sanitary wastewaters and storm water runoff to a publicly owned treatment works

CSO affects the environment and human health: CSOs may contain high suspended solids, BOD,

oil and grease, flotables, toxic pollutants, pathogenic microorganisms

CSO managementProper operation and regular maintenance

(O&M)Routine inspections, maintenance and cleaning

of CSS.O&M reporting, record keeping systems,

reviewing, up-dating, and revisingTraining

Pipe separationWater flow control

Source: Kentucky Division of Water

Industrial Wastewater TreatmentAgricultural and Food IndustryIron and Steel IndustryOrganic chemical Industry (pharmaceuticals,

pesticides, plastics, detergents, etc.)Mining IndustryPaper Mills

Agricultural Wastewater

Aerobic & Anaerobic Lagoons

Land SpreadingConstructed

Wetlands

High NutrientNitrogen,

PhosphorusSolidsAntibioticsPathogenic bacteriaParasitesSynthetic hormonesOrganic matters

Treatment

Livestock waste management

http://cryo.naro.affrc.go.jp/index_e/1302A.jpg

Nature, 2003, July 3rd issue

Technology?

The process of internalizing externalities to improve overall social welfare.

• Nitrogen• Phosphorus• Ammonia• BOD• COD• pH• Selenium• Water flow• Temperature• TSS• Heavy metals

Source: Pharino C. 2007. Sustainable Water Quality management Policy, Springer Netherlands.

Direct MethodsCommand-and-Control:

Quantity based regulation: Quotas w/o trading

Technology-based regulation Best Available Technology (BAT)

Grandfathering Subsidizing Pollution AbatementTaxes

Indirect MethodsPermits and trading (Marginal Abatement Cost =

forgone profits or rent)Credit trading, cap-and-trade, one-time or ongoing offset

programProblems:

Failure due to insufficient market Few traders large trader ratio (buyers: consumers, or consumers: buyers)

Size of watershedHoarding, over allocation of permitsReluctance to trade with competitionInsufficient division of property rights

Tradable PermitsBilateral negotiation: buyer and seller exchange

information and negotiate the termsHigh initial costs to establish infrastructure for

communication and enforcementBanking and borrowingThird party broker

Water Quality Clearinghouse: converts production with variable price and quality into a uniform productReduces search and information costsEliminates all contractual or regulatory links between

sellers and buyersReduces uncertaintyPublicly visible and standardized practices allow for

reduced costs with bargaining and negotiation

Transaction CostsResearch and informationBargaining and decisionMonitoring and enforcement

Unidirectional vs. multidirectionalSeller or buyer liability

Sole Source OffsetsA 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

ProblemsDoes not introduce any additional partiesNo incentives for pollution reduction by

entities that are already in compliance

Methods UsedTrading:•PS-PS•PS-NPS•NPS-NPS

Source: Pharino C. 2007. Sustainable Water Quality management Policy, Springer Netherlands.

Approximated cost-savings from US trading programs

Source: Pharino C. 2007. Sustainable Water Quality management Policy, Springer Netherlands.

Wisconsin Fox River• 1981: Market for BOD discharged by pulp/paper

mills and municipal waste treatment plants• Limited trading with marketable discharge permits

(6-7 plants in two clusters)• Flexibility in abatement options administered by the

state• Five year permits that define waste load allocation• Permit negotiation for a year• Permits can expire• High transaction Costs• Estimated $7 million savings/year• Existed 6 years with one trade

Projected Increase in BOD

Source: EPA, 2002. The Clean Water and Drinking Water Infrastructure Gap Analysis

What approaches (policy tools) could be used to implement a policy for the pollutant in question?Historical Trend - Control vs. incentive

spectrum of politically acceptable practices:a) Started with Command-and-Controlb) Switched to Taxesc) Tradable Permits (Kieser et al, 2002)

Setting up marketable permits - Marketable permits are preferred lately (Woodward et al, 2002): a) A total cap on Pollution Establishedb) Rights and Responsibilities are Allocatedc) Trading is Allowed to reallocate these resources

among the sources

Market Structure vs. Type of Program

Incentive based programs may have different market stuctures (Pharino 2007) – market structure example from Economics section

Market structure is important for allocative efficiency and size of transaction costs

As of 2007, there were 47 incentive based programs in the US, either running or at early implementation stages.

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.

Pollutant vs. Number of ProgramsType of pollutant affects a choice of policy instrumentSource: Pharino C. 2007. Sustainable Water Quality management Policy, Springer Netherlands.

Design Structure vs. Number of Programs

Program Design structure determines who is in or outSource: Pharino C. 2007. Sustainable Water Quality management Policy, Springer Netherlands.

Numbers of trades vs. number of programs

Are all the trading programs effective? Source: Pharino C. 2007. Sustainable Water Quality management Policy, Springer Netherlands.

“The Bubble”

Direct contact/Participation in Decision making

Execution of Decisions/Feedback/Gov Services

Political processes determine – Who gets What, When, and How?

Where do the policies come from?

Interested parties: Organized or Unorganized Parties/Actors

Companies/Industry: directly affected by clean-up costs and transaction costsPoint-source and non-point source polluters: NPS

traders have a superior trading position, availability of additional places to buy savings from

Environmental Protection Groups: Organized to protect the rights of nature and/or intra- and intergenerational justice: now vs. later (Solow, Ch. 26).

Citizens/publics: directly affected by effluent discharges and quality of water

Interested Parties Cont.

Levels of Government: convergence/divergence of goals and resources

Specific agencies charged with overseeing the regulation

NGOs and civil society: advocacy for the rights of special populations or equity goals

Government institutions:

division according to the branch of government, checks and balances are an important part of decision making

Issues facing our POTWsAging Infrastructure

Increasing and Geographically Shifting Population

Insufficient Treatment

Decreased Expenditures in Water Pollution Abatement Research & Development

Inefficient monitoring of private septic tank systems

Small communities are less able to meet standards than large communities.Source: EPA, 2002. The Clean Water and Drinking Water Infrastructure Gap Analysis

Capital Payment GapNo Revenue Growth Revenue Growth

Source: EPA, 2002. The Clean Water and Drinking Water Infrastructure Gap Analysis

Other OptionsPollution PreventionPet Non-Industry

ExamplesThe Composting ToiletHoop-House Hog

Farming

Source: Nature Loo

Savings from Pollution Prevention

Source: Overcash, M., Environmental Management for the Future

Source: Horowitz, John., et. Al. 2006. Do Plants Overcomply with Water Pollution Regulations? The Role of Discharge Variability. Topics in Economic Analysis and Policy

Would Regulation Tightening Reduce Pollution?A 2006 study shows that plants are often polluting below

standardsDischarge Variability

In a study of plants releasing BOD, plants polluted up to 60 percent below set standards

Discharge variability leads plants to reduce their average discharges in order to reduce their chance of violation

Community Pressure Richer-type communities have higher compliance rates Richer-type described as white, high income, low-manufacturing,

medium population

Source: Horowitz, John., et. Al. 2006. Do Plants Overcomply with Water Pollution Regulations? The Role of Discharge Variability. Topics in Economic Analysis and Policy

We would like to encourage a debate regarding the best options for future regulation in point source pollution.