Command and Control Regulation in Action Regulating Industrial Water Pollution in the US.

Command and Command and Control Control Regulation in Regulation in ActionAction

Regulating Industrial Regulating Industrial Water Pollution in the Water Pollution in the

USUS

Clean Water Act of 1972Clean Water Act of 1972

Sets national goals as zero-Sets national goals as zero-discharge of pollution by 1985discharge of pollution by 1985

2 Main Policy Tools2 Main Policy Tools Construction grants programConstruction grants program $$ $$ Technology based regulations for Technology based regulations for

discharge of water pollution from discharge of water pollution from point sourcespoint sources

National Pollutant National Pollutant Discharge Elimination Discharge Elimination SystemSystem

EPA- establishes Federal Effluent EPA- establishes Federal Effluent GuidelinesGuidelines

States– States– write,monitoring, and enforce write,monitoring, and enforce NPEDS permitsNPEDS permits

Main TargetsMain Targets Biochemical oxygen demand (BOD)Biochemical oxygen demand (BOD) total suspended solids (TSS)total suspended solids (TSS) 15 pollutants of concerns, (metals i.e. 15 pollutants of concerns, (metals i.e.

arsenic and mercury) arsenic and mercury)

POTW publicly owned POTW publicly owned treatment workstreatment works

POTWPOTW

POTWPOTW

Tech RegulationTech Regulation Primary treatment (skimming, Primary treatment (skimming,

screening, settling)screening, settling) 65% 65% Secondary treatment - 80-90% Secondary treatment - 80-90% Criteria on uses for sludgeCriteria on uses for sludge ensuring effective operation and ensuring effective operation and

maintenancemaintenance

Direct Discharges from Direct Discharges from Industrial PlantsIndustrial Plants

Direct Discharges from Direct Discharges from Industrial PlantsIndustrial Plants

EPA EPA guidelines for 30 designated guidelines for 30 designated industriesindustries

best practicable technology by best practicable technology by 19771977

Best Available Tech by 1983Best Available Tech by 1983 New Source Performance New Source Performance

Standards Standards

ComplexityComplexity

Dairy StandardsDairy Standards Different standards for subcategoriesDifferent standards for subcategories Acceptable pollutant discharge rates varyAcceptable pollutant discharge rates vary BOD 30 day standard for large facilities BOD 30 day standard for large facilities

Butter .55kg per 1000 kg of BOD input; Butter .55kg per 1000 kg of BOD input; Cottage cheese 2.6, Ice bream 1.84, Cottage cheese 2.6, Ice bream 1.84, Condensed Milk 1.38, Dry Milk .65Condensed Milk 1.38, Dry Milk .65

Separate limits for one day maximum Separate limits for one day maximum discharge, 30 day average, for small and discharge, 30 day average, for small and large facilities. large facilities.

Indirect discharges from industrial Indirect discharges from industrial

plantplant

Industrial plants to POTWIndustrial plants to POTW Pretreatment guidelinesPretreatment guidelines

Rulemaking ProcessRulemaking Process Information Requirements Information Requirements

Writing of direct discharge standardsWriting of direct discharge standards How to operationalize best, practicable, How to operationalize best, practicable,

economically achievableeconomically achievable Need information on production techniques, Need information on production techniques,

location, waste products, and waste treatment location, waste products, and waste treatment techtech

heterogeneity --360 industrial subcategories heterogeneity --360 industrial subcategories among first 30 industries requiring effluent among first 30 industries requiring effluent guidelinesguidelines

separate BPT, BAT, NSPS< and pretreatment separate BPT, BAT, NSPS< and pretreatment regulationsregulations

Rulemaking ProcessRulemaking Process

Role of consulting firmsRole of consulting firms Proposed standards, industry Proposed standards, industry

commentcomment 250 lawsuits 250 lawsuits

Regulatory OutputRegulatory Output

BPT - 1 yearBPT - 1 year BAT standards – 1/3BAT standards – 1/3rdrd done by done by

19951995 Zero Discharge – still waitingZero Discharge – still waiting

Abatement CostsAbatement Costs

Big variation in incremental costsBig variation in incremental costs Estimate of costs > than actualEstimate of costs > than actual

ComplianceCompliance

Assumption- Assumption- 97% reduction in discharge 97% reduction in discharge of priority pollutantsof priority pollutants

Compliance – mixedCompliance – mixed 6% of major direct dischargers -significant 6% of major direct dischargers -significant

noncompliancenoncompliance % of US served by POTWs increases from % of US served by POTWs increases from

42% to 74%42% to 74% POTW pretreatment- POTW pretreatment- 54% of significant 54% of significant

indutstrial users were in significant indutstrial users were in significant noncompliancenoncompliance (1992) (1992)

But is the water cleaner?But is the water cleaner?

Some big successes- Potomac, Some big successes- Potomac, DelawareDelaware

Lack of data, Lack of data,

Perverse IncentivesPerverse Incentives

Expansion of POTW Construction Expansion of POTW Construction Grants Program Grants Program

shift from direct discharge towards shift from direct discharge towards indirect dischargeindirect discharge