Materials Degradation Caused by Acid Rain - ACS Publications

25 Materials Damage and the Law Roger C. Dower and Sarah E. Ball

Downloaded by NORTH CAROLINA STATE UNIV on January 2, 2018 | http://pubs.acs.org Publication Date: September 25, 1986 | doi: 10.1021/bk-1986-0318.ch025

Environmental Law Institute, 1346 Connecticut Avenue NW, Washington, D C 20036 Public debate concerning legislative and regulatory strategies for addressing acid rain damages has raised significant questions about the regulation of materials damage caused by air pollutants in general. Most environmental statutes (as well as public concern) have focused on environmental health effects, leaving us relatively unprepared to cope with non-health damages. Nowhere is this better illustrated than in the lingering controversy over acid rain, yet new concerns such as forest damages suggest that acid rain may not be an isolated case. The purpose of this paper is to highlight the current legal and regulatory structure for addressing materials damage, particularly the economic and technological dimensions of the system. The strengths and weaknesses of the present framework will be discussed and illustrated by the acid rain case. The focus will be on what can be learned from our ability (or inability) to handle acid rain and the implications for regulatory treatment of other air pollution-caused materials damage. I n r e c e n t y e a r s , the now much d e l a y e d r e - a u t h o r i z a t i o n o f t h e C l e a n A i r A c t (CAA) has been i n e x t r i c a b l y t i e d t o r e s o l u t i o n o f what i s r e f e r r e d t o as the a c i d r a i n debate. A l t h o u g h t o x i c a i r p o l l u t a n t s have moved i n r e c e n t l y t o take t h e f r o n t s e a t , a c i d r a i n remains an i s s u e o f b i t t e r d i s p u t e . T h i s debate has brought to the p u b l i c ' s a t t e n t i o n the n o n - h e a l t h r e l a t e d e f f e c t s o f a i r p o l l u t a n t s , i n c l u d i n g m a t e r i a l s damages. The r e c o r d suggests t h a t t h i s i s a c l a s s o f p o l l u t i o n impacts t h a t we have a v e r y d i f f i c u l t time r e s o l v i n g w i t h i n our c u r r e n t s t a t u t o r y and r e g u l a t o r y framework. Y e t m a t e r i a l s damages and o t h e r n o n - h e a l t h a i r p o l l u t i o n e f f e c t s i n c r e a s i n g l y appear on the r e g u l a t o r y agenda. The purpose of t h i s paper i s t o r e v i e w some o f t h e more obvious reasons f o r 0097-6156/86/0318-0360S06.00/ 0 © 1986 American Chemical Society

Baboian; Materials Degradation Caused by Acid Rain ACS Symposium Series; American Chemical Society: Washington, DC, 1986.

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our problems i n c o p i n g w i t h m a t e r i a l s damage e f f e c t s , p a r t i c u l a r l y those t h a t emerge from the a c i d r a i n debate, and t o suggest some v e r y modest p r o p o s a l s f o r b e g i n n i n g t o r e g u l a t e those e f f e c t s .


Some G e n e r a l

Observations

As a prelude t o the main body of t h i s paper, i t might be u s e f u l to o f f e r some broad o b s e r v a t i o n s c o n c e r n i n g m a t e r i a l s damages and environmental rule-making. Taken t o g e t h e r , these form at l e a s t one p e r s p e c t i v e from w h i c h t o judge a l t e r n a t i v e s t r u c t u r e s f o r m a t e r i a l s damage c o n t r o l . They p r o v i d e a framework f o r t e s t i n g and c o n s i d e r i n g c e r t a i n b a s i c hypotheses c o n c e r n i n g the a p p l i c a b i l i t y of our c u r r e n t s t r u c t u r e s f o r d e v e l o p i n g r a t i o n a l and e f f e c t i v e p o l i c i e s towards a c i d r a i n and o t h e r types of a i r p o l l u t i o n problems where m a t e r i a l s damages and o t h e r e n v i r o n m e n t a l e f f e c t s are dominant. 1) The s t a t u t o r y and r e g u l a t o r y s t r u c t u r e c o n t a i n e d i n the CAA p r a c t i c a l l y ensures t h a t m a t e r i a l s damage e f f e c t s and o t h e r n o n - h e a l t h r e l a t e d e f f e c t s w i l l not and cannot p l a y a major r o l e i n r u l e m a k i n g c o n c e r n i n g a i r p o l l u t a n t s . The A c t emphasizes p u b l i c h e a l t h concerns and p r o v i d e s l i t t l e i n the way of a s u b s t a n t i v e p a r t f o r m a t e r i a l s damages. Of course, t h i s s i t u a t i o n i s not unique t o a i r p o l l u t i o n c o n t r o l . EPA has been c h a r a c t e r i z e d as a p u b l i c h e a l t h agency and p u r e l y e n v i r o n m e n t a l concerns appear t o have o f t e n t a k e n a back s e a t . Where h e a l t h e f f e c t s predominate, t h i s focus i s s e n s i b l e . However, where h e a l t h e f f e c t s are s m a l l or outweighed by m a t e r i a l s damage or o t h e r e n v i r o n m e n t a l e f f e c t s , the b i a s may be towards no r e g u l a t i o n . T h i s may be so even i f the m a t e r i a l s damage e f f e c t s are q u i t e l a r g e . 2) The two c h a r a c t e r i s t i c s of the a c i d r a i n problem t h a t have made the r e g u l a t o r y response so d i f f i c u l t are the u n c e r t a i n t i e s a s s o c i a t e d w i t h the causes and e f f e c t s and the i n t e r s t a t e n a t u r e of the causes and e f f e c t s . The f i r s t , of course, i s hard t o d e a l w i t h i n any r u l e m a k i n g , but t h e r e seems to be more r e t i c e n c e i n d e c i d i n g one way or the o t h e r when i t comes t o e n v i r o n m e n t a l e f f e c t s . The second comes up h a r d a g a i n s t the f e d e r a l i s m of the CAA, where the goals of the A c t are c a r r i e d out, i n l a r g e p a r t , by independent s t a t e i m p l e m e n t a t i o n p l a n s . There i s l i t t l e t o f o r c e one s t a t e to c o n s i d e r the environment of another. B o t h of these c h a r a c t e r i s t i c s are common, i n v a r y i n g degrees, t o other a i r p o l l u t a n t s w i t h m a t e r i a l s damage e f f e c t s . 3) There appears to be a w i l l i n g n e s s on the p a r t of EPA, Congress and presumably the p u b l i c , to acknowledge the economic t r a d e - o f f s a s s o c i a t e d w i t h m a t e r i a l s damage e f f e c t s . T h i s i s i n r a t h e r sharp c o n t r a s t t o the u n w i l l i n g n e s s t o acknowledge economics i n s e t t i n g or r e v i e w i n g h e a l t h - b a s e d s t a n d a r d s . While t h i s i s i n p a r t a f u n c t i o n of the s t a t u t o r y language of the C l e a n A i r A c t , i t a l s o r e f l e c t s the i n t e r s t a t e and more r e g i o n a l n a t u r e of m a t e r i a l s damage e f f e c t s . Both tend to h i g h l i g h t the key q u e s t i o n s of who pays f o r a c i d r a i n c o n t r o l , who b e n e f i t s and by how much. We c e r t a i n l y do not a s c r i b e the same e t h i c a l dimension t o m a t e r i a l s damage e f f e c t s as we do t o h e a l t h e f f e c t s .



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M A T E R I A L S D E G R A D A T I O N C A U S E D BY A C I D RAIN

T h i s w i l l i n g n e s s t o c o n s i d e r economics more f u l l y tends t o p o l a r i z e the d e c i s i o n making p r o c e s s i f t h e r e i s no f o r m a l d e c i s i o n r u l e t o guide the r e g u l a t o r . I t i s p r e c i s e l y the economic t r a d e - o f f debate t h a t has s t a l l e d a c i d r a i n l e g i s l a t i o n f o r so l o n g . There i s l i t t l e q u e s t i o n but t h a t r e g u l a t o r s a r e a b l e t o a c t more q u i c k l y , i f n o t more - a t i o n a l l y , when h e a l t h e f f e c t s are at s t a k e . 4) The d i f f i c u l t y o f d e a l i n g w i t h the economic t r a d e - o f f s of c o n t r o l l i n g m a t e r i a l s damages from a i r p o l l u t a n t s i s e x a c e r b a t e d by the obvious and d i r e c t c o s t s of c o n t r o l and the u n c e r t a i n economic b e n e f i t s . T h i s i s not a p a r t i c u l a r l y c r e a t i v e n o t i o n and a f f e c t s t o one degree o r another most e n v i r o n m e n t a l r u l e m a k i n g s . I t seems many more times pronounced when c o n s i d e r i n g m a t e r i a l s damage e f f e c t s . I t i s i m p o r t a n t , though, because i t suggests the importance of merging economic and t e c h n i c a l i n f o r m a t i o n t o p r o v i d e the o t h e r h a l f of the e q u a t i o n . The a l t e r n a t i v e i s , as i n the a c i d r a i n debate, no a c t i o n or r e g u l a t o r y programs w i t h u n c e r t a i n outcomes. I f , i n f a c t , we a r e as a s o c i e t y w i l l i n g t o c o n s i d e r the economic t r a d e - o f f s o f r e g u l a t o r y p o l l u t a n t s on t h e b a s i s o f m a t e r i a l s damage, and i f we do not p r o v i d e some f o r m a l framework w i t h i n w h i c h these e f f e c t s can be c o n s i d e r e d and b a l a n c e d , t h e r e seems t o be l i t t l e hope f o r e f f e c t i v e and r a t i o n a l r e g u l a t o r y outcomes. The

C l e a n A i r A c t and M a t e r i a l s Damage E f f e c t s

H a v i n g s t a t e d the g e n e r a l b i a s of the paper, i t i s n e c e s s a r y t o p r o v i d e the background t h a t leads t o t h e s e o b s e r v a t i o n s . The obvious s t a r t i n g p o i n t i s the s t a t u t o r y language o f the CAA as i t r e l a t e s t o m a t e r i a l s damage. I n an e a r l i e r paper f o r t h e N a t i o n a l Academy o f S c i e n c e s 8 t h Symposium on S t a t i s t i c s , Law and the Environment ( 1 ) , Dower has d i s c u s s e d i n some d e t a i l t h e major s e c t i o n o f the A c t t h a t r e l a t e s t o m a t e r i a l s damages. L i t t l e purpose i s s e r v e d here by r e p e a t i n g t h a t d i s c u s s i o n e x c e p t i n summary. I n a d d i t i o n , other s e c t i o n s o f the A c t o f f e r some p o t e n t i a l f o r r e g u l a t i n g p o l l u t a n t s w i t h m a t e r i a l s damage e f f e c t s , and t h e s e deserve some g r e a t e r a t t e n t i o n . Ambient A i r Q u a l i t y S t a n d a r d s . The p r i m a r y mechanism f o r r e g u l a t i n g a i r p o l l u t a n t s on the b a s i s of m a t e r i a l damage e f f e c t s i s o u t l i n e d i n S e c t i o n s 108 and 109 of t h e A c t . These s e c t i o n s l a y out the process f o r s e t t i n g p r i m a r y ( h e a l t h - b a s e d ) and secondary ( w e l f a r e - b a s e d ) n a t i o n a l ambient a i r q u a l i t y s t a n d a r d s f o r c r i t e r i a p o l l u t a n t s . M a t e r i a l s damages f a l l under the secondary s t a n d a r d s e t t i n g p r o c e s s , where w e l f a r e e f f e c t s a r e d e f i n e d as " e f f e c t s on s o i l s , water, c r o p s , v e g e t a t i o n , man-made m a t e r i a l s , a n i m a l s , w i l d l i f e , p r o p e r t y , . . . t r a n s p o r t a t i o n , as w e l l as e f f e c t s on economic v a l u e s and p e r s o n a l comfort and w e l l being." Congress d i s t i n g u i s h e d h e a l t h e f f e c t s and w e l f a r e e f f e c t s q u i t e e x p l i c i t l y . EPA would s e t p r i m a r y s t a n d a r d s t h a t a l l o w f o r an "adequate m a r g i n o f s a f e t y " . W e l f a r e s t a n d a r d s a r e r e q u i r e d " t o p r o t e c t the p u b l i c w e l f a r e from any known o r a n t i c i p a t e d adverse e f f e c t s . " The f u n c t i o n a l d i f f e r e n c e between these two



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d e f i n i t i o n s and whether one suggests a more s t r i n g e n t s t a n d a r d than another i s the m a t t e r of some debate. N e v e r t h e l e s s , l i t e r a l l y i n t e r p r e t e d , secondary s t a n d a r d s are i n t e n d e d t o be more d i f f i c u l t to a c h i e v e than p r i m a r y standards and, t h e o r e t i c a l l y , c o u l d be s e t at a zero l e v e l ( s i n c e most m a t e r i a l s damages dose/response f u n c t i o n s are l i n e a r w i t h o u t t h r e s h o l d s ) . Perhaps more i m p o r t a n t than the b a s i s f o r s t a n d a r d s e t t i n g i s the f a c t t h a t the CAA d i d not s e t d e a d l i n e s f o r a t t a i n m e n t f o r the secondary s t a n d a r d s w h i l e e s t a b l i s h i n g a f o r m a l s e t of compliance d e a d l i n e s f o r the p r i m a r y s t a n d a r d s . Where d e a d l i n e s are one method f o r d e m o n s t r a t i n g C o n g r e s s i o n a l r e s o l v e w i t h r e s p e c t t o a r e g u l a t o r y r e q u i r e m e n t , t h e i r absence i s p a r t i c u l a r l y noteworthy. The l e g i s l a t i v e h i s t o r y of the CAA c l e a r l y p r o h i b i t s EPA from t a k i n g i n t o account the c o s t s and b e n e f i t s of p r i m a r y NAAQS. These are s t r i c t l y h e a l t h - b a s e d s t a n d a r d s . W h i l e many s t u d e n t s of the CAA argue t h a t the same i s s a i d f o r the secondary s t a n d a r d s , the case i s n ' t q u i t e as c l e a r . The A c t i t s e l f i s s i l e n t on the i s s u e and the l e g i s l a t i v e h i s t o r y i s q u i t e vague. However, the d e f i n i t i o n of w e l f a r e e f f e c t s might be i n t e r p r e t e d t o a l l o w f o r t r a d i n g o f f of one type of w e l f a r e damage (say m a t e r i a l s damage) a g a i n s t another ( f o r example, p e r s o n a l comfort and w e l l - b e i n g ) . The i s s u e has never been d i r e c t l y addressed by the c o u r t s , and a l t h o u g h EPA appears to c o n s i d e r i n a g e n e r a l sense the c o s t s and b e n e f i t s of c e r t a i n r e g u l a t o r y e f f e c t s i n the s e t t i n g of secondary s t a n d a r d s , the q u e s t i o n remains unanswered. The NAAQS process does not p r o v i d e the most r e l i a b l e o r u s e f u l mechanism f o r r e g u l a t o r y accommodation of m a t e r i a l s damage e f f e c t s . L a c k i n g an a t t a i n m e n t s c h e d u l e , t h e r e i s l i t t l e i n c e n t i v e f o r EPA or the s t a t e s t o take the r e q u i r e m e n t s s e r i o u s l y . Where t h e r e are secondary s t a n d a r d s t h a t d i f f e r from the p r i m a r y s t a n d a r d s ( t h i s i s the case o n l y f o r T o t a l Suspended P a r t i c u l a t e s and S u l f u r D i o x i d e ) , the a t t a i n m e n t r e c o r d i s b l e a k . Second, the requirements f o r n a t i o n a l ambient s t a n d a r d s seems somewhat at odds w i t h the f a c t t h a t , a t l e a s t t o d a t e , w e l f a r e e f f e c t s i n g e n e r a l appear t o be more r e g i o n a l i n n a t u r e and may not be e a s i l y handled by a process t h a t r e q u i r e s s t a n d a r d s to be g e o g r a p h i c a l l y u n i f o r m . (Some s t a t e s do have secondary s t a n d a r d s i n p l a c e t h a t are e i t h e r s t r i c t e r t h a n F e d e r a l s t a n d a r d s or t h a t r e g u l a t e a p o l l u t a n t i n the absence of a F e d e r a l s t a n d a r d . Wyoming, f o r example, has a secondary s t a n d a r d f o r s u l f a t e s , and Maine's s t a n d a r d f o r ozone i s s t r i c t e r than the Federal standard.) F i n a l l y , most o b s e r v e r s , u n t i l v e r y r e c e n t l y , have assumed t h a t EPA c o u l d not s e t a secondary s t a n d a r d w i t h o u t a l s o s e t t i n g a p r i m a r y s t a n d a r d . I f a p o l l u t a n t were a s s o c i a t e d w i t h m a t e r i a l s damage e f f e c t s but had no known h e a l t h e f f e c t s , the Agency would have t o go elsewhere f o r s t a t u t o r y a u t h o r i t y t o r e g u l a t e . T h i s c o n v e n t i o n a l view i s b e i n g c h a l l e n g e d by the N a t u r a l Resources Defense C o u n c i l , which argues t h a t EPA has a n o n - d i s c r e t i o n a r y duty t o r e g u l a t e c e r t a i n s u l f a t e p a r t i c l e s i z e s under the secondary s t a n d a r d s f o r t h e i r c o n t r i b u t i o n t o reduced v i s i b i l i t y and a c i d r a i n . Even i f i t were p o s s i b l e t o r e g u l a t e s u l f a t e s under S e c t i o n 108 and 109, the A c t s t i l l l a c k s a t t a i n m e n t d e a d l i n e s t o put t e e t h i n the r e q u i r e m e n t s .



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A l t e r n a t i v e Approaches. I n 1977, Congress e x p l i c i t l y r e c o g n i z e d the problems o f d e a l i n g w i t h i n t e r s t a t e p o l l u t i o n problems, o f which a c i d r a i n was most o f t e n c o n s i d e r e d , and added S e c t i o n 126 to the Act. S e c t i o n 126 a l l o w s s t a t e s on t h e r e c e i v i n g end o f t r a n s p o r t e d a i r p o l l u t i o n t o p e t i t i o n EPA and r e q u i r e p o l l u t i n g s t a t e s t o r e v i s e t h e i r s t a t e i m p l e m e n t a t i o n plans t o reduce e m i s s i o n s ( 2 ) . The drawback o f S e c t i o n 126, b e s i d e s the f a c t t h a t i t r e l i e s on t h e a b i l i t y o f e x i s t i n g a i r q u a l i t y m o d e l i n g t o demonstrate the source o f p o l l u t i o n problems and t h a t EPA has p l a c e d the burden o f proof o f the p e t i t i o n i n g s t a t e , i s t h a t i t o n l y a p p l i e s t o p o l l u t a n t s t h a t have been addressed through the NAAQS p r o c e s s , w h i c h may miss t h e r e a l concerns. I n a d d i t i o n , S e c t i o n 126 does not attempt t o r e s o l v e a major impediment t o a c i d r a i n c o n t r o l — t h e f a c t t h a t s t a t e s t h a t b e n e f i t from t h e r e g u l a t i o n s do not g e n e r a l l y bear the c o s t s ( 3 ) . L a c k i n g a f o r m u l a f o r a l l o c a t i o n o f c o s t s , i t i s l i t t l e wonder t h a t t h e r e has been v i r t u a l l y no a c t i v i t y under t h i s s e c t i o n o f the A c t . S e c t i o n 111 of t h e CAA i n v o l v i n g t h e e s t a b l i s h m e n t o f new source performance s t a n d a r d s has a l s o been i d e n t i f i e d as a mechanism f o r a d d r e s s i n g t h e c o n t r o l o f a c i d r a i n . On t h e s u r f a c e , t h i s s e c t i o n o f the A c t would appear t o have the most f l e x i b i l i t y t o d e a l w i t h w e l f a r e e f f e c t s . S e c t i o n 111 d i r e c t s EPA to s e t t e c h n o l o g y - b a s e d " s t a n d a r d s o f performance" f o r new and m o d i f i e d sources o f p o l l u t i o n t h a t "cause o r s i g n i f i c a n t l y c o n t r i b u t e t o a i r p o l l u t i o n which may r e a s o n a b l y be a n t i c i p a t e d t o endanger p u b l i c h e a l t h and w e l f a r e " ( 4 ) . W h i l e t h e s e s t a n d a r d s are i n t e n d e d t o be n a t i o n a l l y u n i f o r m , EPA i s g i v e n r a t h e r broad a u t h o r i t y t o d i s t i n g u i s h between "cause o r s i g n i f i c a n t l y c o n t r i b u t e t o a i r p o l l u t i o n which may r e a s o n a b l y be o f sources and t o t a k e i n t o account t h e age of t h e s o u r c e f a c i l i t y . F u r t h e r , EPA i s i n s t r u c t e d t o ensure t h a t a r e a s o n a b l e b a l a n c e i s s t r u c k between economic, e n v i r o n m e n t a l and energy c o n s i d e r a t i o n s . A l t h o u g h w r i t t e n i n terms o f new sources o f p o l l u t i o n , S e c t i o n 111(d) p r o v i d e s f o r t h e a p p l i c a t i o n o f NSPS t o e x i s t i n g sources where t h e NSPS a p p l y t o p o l l u t a n t s n o t r e g u l a t e d elsewhere under the A c t ( 5 ) . The h i s t o r y o f a p p l y i n g NSPS t o e x i s t i n g s o u r c e s , as a p o s s i b l e means t o overcome the l i m i t a t i o n s o f s e t t i n g NAAQS f o r w e l f a r e - o n l y type p o l l u t a n t s , i s l i m i t e d . One somewhat r e l e v a n t r u l e m a k i n g , i n v o l v i n g c o a l f i r e d u t i l i t i e s , d i d d e a l w i t h new and e x i s t i n g s o u r c e s , f o r t h e performance s t a n d a r d was a l s o combined w i t h a percentage r e d u c t i o n r e q u i r e m e n t . The n a t i o n a l l y u n i f o r m n a t u r e of t h e NSPS o p t i o n may have i n h i b i t e d i t s a p p l i c a t i o n t o a c i d r a i n o r other p o l l u t a n t s . Moreover, the NSPS f o r c o a l f i r e d u t i l i t i e s may have worsened t h e a c i d r a i n problem by b i a s i n g investment d e c i s i o n s towards o l d o r e x i s t i n g p l a n t s r a t h e r than new, c l e a n e r p l a n t s . I t s f l e x i b i l i t y may a l s o be l i m i t e d by i t s t e c h n o l o g y b a s i s which doesn't a l l o w wide range o f p o s s i b l e r e g u l a t o r y responses. The f i n a l s e c t i o n o f the CAA t o be d i s c u s s e d here i s S e c t i o n 169A. O r i g i n a l l y d e s i g n e d t o p r o t e c t n a t i o n a l parks and w i l d e r n e s s areas from r e g i o n a l haze and s u l f a t e s , i t has r e c e n t l y been suggested t h a t i t c o u l d a l s o s e r v e as a v e h i c l e f o r c o n t r o l l i n g a c i d r a i n . S e c t i o n 169A p r o v i d e s f o r a r e g i o n a l


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approach t o the r e g u l a t i o n o f powerpiants and o t h e r sources of v i s i b i l i t y - i m p a i r i n g p o l l u t a n t s . To date, r e g u l a t i o n s under 169A have n o t advanced beyond a s e t o f i n i t i a l r e g u l a t i o n s aimed a t powerplants near n a t i o n a l parks i n t h e West and an a m b i t i o u s second phase p r o p o s a l f o r l a r g e r e d u c t i o n s i n e a s t e r n S 0 2 e m i s s i o n s . W h i l e 169A does come c l o s e t o d e a l i n g w i t h some c h a c t e r i s t i c s of m a t e r i a l s damages, i t c u r r e n t l y l a c k s much i n t h e way of enforcement p o t e n t i a l and may be j u s t another case o f u s i n g the wrong t o o l j u s t because i t i s handy ( 6 ) .


Lessons from A c i d R a i n In a t t e m p t i n g t o come t o g r i p s w i t h a c i d r a i n c o n t r o l , EPA, i n d u s t r y , s t a t e s and e n v i r o n m e n t a l i s t s have had t o seek out c r e a t i v e ( o r at l e a s t n o v e l ) approaches f o r overcoming t h e l i m i t a t i o n s of t h e CAA t o address t h e unique c h a r a c t e r i s t i c s o f the problem. I n d o i n g s o , they have c o n s t r u c t e d something o f a t r a c k r e c o r d f o r those concerned w i t h r e g u l a t i n g a i r p o l l u t a n t s a s s o c i a t e d w i t h m a t e r i a l s damages and o t h e r w e l f a r e e f f e c t s . W h i l e t h e r e are d i f f e r e n c e s , of course, between t h e problems posed by a c i d r a i n and those r e l a t e d t o o t h e r p o l l u t a n t s w i t h w e l f a r e e f f e c t s , such as ozone ( f o r example, t h e p o l i t i c a l / e c o n o m i c c o n s t r a i n t s posed by t h e c o a l s w i t c h i n g problem), t h e r e a r e s e v e r a l c r i t i c a l s i m i l a r i t i e s . Without a t t e m p t i n g t o r e v i e w each and e v e r y a c i d r a i n p r o p o s a l or t o r e v i e w t h e h i s t o r y o f the a c i d r a i n l e g i s l a t i o n , t h e r e a r e broad c h a r a c t e r i s t i c s o f t h e a l t e r n a t i v e p r o p o s a l s which bear on m a t e r i a l s damages i n g e n e r a l . 1) Excess E m i s s i o n R e d u c t i o n T a r g e t s — Most of t h e s e r i o u s p r o p o s a l s f o r a c i d r a i n c o n t r o l ( i n f a c t , both t h e House and Senate b i l l s o f 1984) i n v o l v e some f o r m u l a f o r a l l o c a t i n g r e d u c t i o n s excess e m i s s i o n s of SO2 over a d e f i n e d p o p u l a t i o n o f e m i t t e r s ( i n almost a l l c a s e s , e l e c t r i c u t i l i t i e s ) . The p r i n c i p a l f o c u s o f these e f f o r t s i s t o reduce t o t a l r e g i o n a l e m i s s i o n s , thus a v o i d i n g t h e n a t i o n a l l y u n i f o r m , ambient requirements o f t h e NAAQS. W h i l e the p r o p o s a l s d i f f e r as t o who must come i n t o compliance w i t h what, when, and how, they share t h e common f e a t u r e of r e q u i r i n g p r o p o r t i o n a l r e d u c t i o n s , i n e m i s s i o n s above some t h r e s h o l d l e v e l ( 7 ) . The p o l i t i c a l and economic i m p l i c a t i o n s o f t h i s approach have been d i s c u s s e d e x t e n s i v e l y elsewhere ( 8 ) . 2) Cost S h a r i n g — S e v e r a l of t h e most r e c e n t p r o p o s a l s p r o v i d e f o r some f o r m u l a f o r d i s t r i b u t i n g t h e c o s t s o f a c i d r a i n c o n t r o l a c r o s s a w i d e r audience than those who would n o r m a l l y bear the d i r e c t burden o f the c o n t r o l r e q u i r e m e n t s . F o r example, t h e House b i l l would have imposed a t a x o f 1 m i l l per k i l o w a t t hour on a l l e l e c t r i c u t i l i t y consumers i n t h e contiguous U.S. The i n t e n t of such c o s t s h a r i n g arrangements i s t o r e d r e s s t h e d i s t r i b u t i o n a l consequences o f a c i d r a i n c o n t r o l b e n e f i t s and c o s t s f a l l i n g on d i f f e r e n t r e g i o n s i n d i f f e r i n g l e v e l s . L a c k i n g an a c c u r a t e b a s i s f o r e s t i m a t i n g who g a i n s and who l o s e s , t h e c o s t and b e n e f i t a l l o c a t i o n problem i s among t h e h a r d e s t t o r e s o l v e as we have seen over t h e l a s t s e v e r a l y e a r s .



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3) Treatment o f U n c e r t a i n t y — The b a s i c approach o f most a c i d r a i n p r o p o s a l s towards t h e u n c e r t a i n t i e s between e m i s s i o n s r a t e s , ambient e n v i r o n m e n t a l c o n c e n t r a t i o n s and e n v i r o n m e n t a l impact i s t o i g n o r e them. That i s , an assumption i s made t h a t r e d u c t i o n s i n S02 w i l l r e s u l t i n improved e n v i r o n m e n t a l q u a l i t y and t h a t the e x a c t n a t u r e of t h e r e l a t i o n s h i p (and t h e r e f o r e t h e a c t u a l i n c r e a s e i n e n v i r o n m e n t a l q u a l i t y r e s u l t i n g from a g i v e n percentage r o l l b a c k ) i s p r o b l e m a t i c . Perhaps t h i s language i s t o o s t r o n g . The a c i d r a i n debate i s c e r t a i n l y b e i n g h e l d i n t h e name of e n v i r o n m e n t a l i m p r o v e m e n t — e x p e c t e d or a c t u a l . Y e t we seem t o know much l e s s , o r a t l e a s t have g r e a t e r u n c e r t a i n t y , about t h e expected e n v i r o n m e n t a l e f f e c t s of c u r r e n t c o n t r o l p r o p o s a l s than we do f o r most o t h e r i n - p l a c e r e g u l a t o r y programs. T h i s may be a f e a s i b l e p o l i t i c a l o r l e g i s l a t i v e response, but not p a r t i c u l a r l y a p p r o p r i a t e o r p o s s i b l e w i t h i n the a d m i n i s t r a t i v e requirements o f environmental rulemaking. The a d m i n i s t r a t i v e response t o a c i d r a i n o f d o i n g v e r y l i t t l e i s , i n p a r t , a f u n c t i o n o f the b a r r i e r s set up by s c i e n t i f i c , t e c h n i c a l and economic u n c e r t a i n t y . L a c k i n g even p a r t i a l i n f o r m a t i o n on p o s s i b l e e f f e c t s t h r e s h o l d s , r e g u l a t o r s a r e u n d e r s t a n d a b l y l o a t h e t o a c t . The burden of a c t i n g f a l l s t o Congress as i t s d e c i s i o n - m a k i n g i s not as c o n s t r a i n e d by u n c e r t a i n t y . Even Congress, however, has t o b a l a n c e competing i n t e r e s t s , and because i t l a c k e d any f i r m o r c o m p e l l i n g s c i e n t i f i c e v i d e n c e , t h e i s s u e was bound t o s t a l l . One somewhat s u b t l e e f f e c t of t h i s u n c e r t a i n t y r e l a t i n g t o m a t e r i a l s damage e f f e c t s i s t o c o m p l i c a t e the p u b l i c ' s a b i l i t y t o understand o r v a l u e ( i n a g e n e r a l not economic sense) these k i n d s of e n v i r o n m e n t a l e f f e c t s . F o r example, t h e r e i s tremendous u n c e r t a i n t y r e g a r d i n g the h e a l t h outcomes o f some o f our c u r r e n t r e g u l a t o r y programs. The same can be s a i d of some programs a f f e c t i n g r e c r e a t i o n a l v a l u e s . T h i s has not stopped EPA o r Congress from r e g u l a t i n g , perhaps because the p u b l i c has a m e n t a l framework w i t h i n w h i c h they can judge and understand r e g u l a t o r y outcomes w i t h w h i c h they have some a c t u a l o r p e r c e i v e d e x p e r i e n c e . I t i s more d i f f i c u l t t o g a l v a n i z e a broad base o f p u b l i c support f o r a c o s t l y r e g u l a t o r y program t o reduce m a t e r i a l s d e g r a d a t i o n . B e s i d e s the f a c t t h a t one does not seem as i m p o r t a n t as t h e o t h e r , t h e g e n e r a l p u b l i c has had l i t t l e e x p e r i e n c e w i t h m a t e r i a l s damages. I t may n o t be a b l e t o r e l a t e changes i n a i r q u a l i t y t o these k i n d s o f damages. T h i s does not mean t h e r e i s no impact: both h e a l t h and e n v i r o n m e n t a l e f f e c t s impose r e a l economic costs. T h i s b r i e f p i c t u r e o f some o f the common elements i n c u r r e n t p r o p o s a l s t o curb a c i d r a i n damages does not o f f e r much optimism c o n c e r n i n g our a b i l i t y t o address o t h e r forms o f w e l f a r e o r m a t e r i a l s damage e f f e c t s . Even s e t t i n g a s i d e t h e d i s t r i b u t i o n a l problems a s s o c i a t e d w i t h long-range t r a n s p o r t of p o l l u t a n t s , s c i e n t i f i c and t e c h n i c a l u n c e r t a i n t y , r e g i o n a l and l o c a l i m p a c t s , and a l a c k o f p u b l i c u n d e r s t a n d i n g c o n c e r n i n g m a t e r i a l s damage e f f e c t s , t h e CAA remains a poor v e h i c l e f o r e f f e c t i v e c o n t r o l o f m a t e r i a l s damage e f f e c t s . The c u r r e n t approach t o a c i d r a i n c o n t r o l i s t o add a new program i n t o t h e a c t d i r e c t e d s p e c i f i c a l l y


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at a c i d r a i n . The d e s i r a b i l i t y o r p o l i t i c a l f e a s i b i l i t y o f t h i s t a c t i s suspect and i s c e r t a i n l y n o t a f u n c t i o n a l model f o r treatment o f m a t e r i a l s d e g r a d a t i o n impacts i n g e n e r a l . The p o l a r i z a t i o n o f t h e debate between f a s t r e g u l a t o r y a c t i o n and a d d i t i o n a l r e s e a r c h has l e d t o a s t a l e m a t e . I t i s not d i f f i c u l t t o imagine t h e same outcome f o r o t h e r p o l l u t i o n problems w i t h t h e similar characteristics.


Conclusions The p i c t u r e p a i n t e d i n t h i s paper i s not v e r y r e v e a l i n g ; i t i s always e a s i e r t o say what i s wrong w i t h a program than t o d e s i g n s o l u t i o n s . N e v e r t h e l e s s , c e r t a i n themes emerge from the r e v i e w o f the CAA and t h e c u r r e n t a c i d r a i n debate t h a t need t o be i n c o r p o r a t e d i n t o any broad l e g i s l a t i v e o r r e g u l a t o r y attempt t o cope w i t h m a t e r i a l s damages from a i r p o l l u t i o n . F i r s t , i t s h o u l d be c l e a r t h a t none o f the c u r r e n t s e c t i o n s of the CAA o r t h e c u r r e n t p r o p o s a l s f o r a c i d r a i n c o n t r o l o f f e r s a f u n c t i o n a l and c o n s i s t e n t b a s i s f o r r e g u l a t i n g a i r p o l l u t a n t s where m a t e r i a l s damages o r o t h e r e n v i r o n m e n t a l e f f e c t s predominate. A r e - t h i n k i n g of the u n d e r l y i n g p h i l o s o p h y o f the A c t ( i n terms o f n a t i o n a l l y u n i f o r m standards d r i v e n by h e a l t h concerns) needs t o take p l a c e . The s i m p l e ( a c t u a l l y not so s i m p l e ) a d d i t i o n o f new programs t o t h e c u r r e n t s t a t u t e may be e f f e c t i v e i n s p e c i f i c cases but does n o t address t h e b a s i c l i m i t a t i o n s o f the A c t . As p u b l i c concern over e n v i r o n m e n t a l as w e l l as h e a l t h e f f e c t s i n c r e a s e s , these l i m i t a t i o n s can o n l y become more pronounced. There have been s u g g e s t i o n s made t o i n c o r p o r a t e t h e p r i m a r y and secondary NAAQS i n t o one process w i t h v a r y i n g dates f o r a t t a i n m e n t o r t o a l l o w f o r r e g i o n a l secondary NAAQS where a p p r o p r i a t e . Both a r e r e a s o n a b l e p o s s i b i l i t i e s , but need t o be coupled w i t h w i d e r discussion. Second, t h e r e i s a tremendous need t o develop a more s o l i d i n f o r m a t i o n base on t h e s c i e n t i f i c , t e c h n i c a l and economic u n d e r p i n n i n g s o f m a t e r i a l damages. F u r t h e r , such d a t a needs t o be more c l o s e l y merged i f i t i s t o p l a y an i m p o r t a n t p a r t i n promoting e f f e c t i v e p r o t e c t i o n programs. T h i s w i l l n o t o n l y t o ensure e f f i c i e n t d e c i s i o n making, b u t w i l l a l s o a i d i n d e t e r m i n i n g a p p r o p r i a t e a l l o c a t i o n formulas f o r c o s t s and b e n e f i t s and t o h e l p develop a b a l a n c e d p u b l i c awareness o f m a t e r i a l s damages and o t h e r e n v i r o n m e n t a l e f f e c t s . Economic b e n e f i t a n a l y s i s , by p r o v i d i n g a framework f o r b r i n g i n g t o g e t h e r t e c h n i c a l , s c i e n t i f i c and economic i n f o r m a t i o n , can be a c r i t i c a l a s s e t i n t h i s p r o c e s s . By p r o v i d i n g some n o t i o n o f t h e d o l l a r v a l u e o f damages a s s o c i a t e d w i t h m a t e r i a l s damages, a b a s e l i n e f o r comparison w i t h o t h e r types of impacts (even i f they a r e e x p r e s s e d i n n o n - d o l l a r u n i t s ) can be presented. F i n a l l y , EPA must be g r a n t e d under whatever r e s o l u t i o n i s u l t i m a t e l y chosen a h i g h degree o f f l e x i b i l i t y t o cope w i t h t h e wide v a r i a t i o n s i n t h e e x t e n t o f knowledge c o n c e r n i n g e n v i r o n m e n t a l e f f e c t s and t h e c h a r a c t e r i s t i c s o f t h e c o n t r o l problem. A l l o r n o t h i n g approaches w i l l l e a d t o a c i d r a i n - t y p e impasses. The b e n e f i t s o f t a i l o r i n g responses t o t h e d a t a a t hand


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r a t h e r than imposing broad-based c o n t r o l s seems more b e f i t t i n g the c h a r a c t e r i s t i c s of m a t e r i a l s damages and s o c i a l p e r c e p t i o n s s u r r o u n d i n g the i s s u e . T h i s does not mean t h e r e s h o u l d be no r e g u l a t i o n w i t h o u t 100 p e r c e n t c e r t a i n t y , an u n l i k e l y s i t u a t i o n . I t does suggest we need not a p p l y h e a l t h e f f e c t s e t h i c s t o e n v i r o n m e n t a l damages c o n t r o l . A l l o w i n g f o r e x p l i c i t r e c o g n i t i o n of the c o s t s and b e n e f i t s (however e x p r e s s e d ) o f a l t e r n a t i v e r e g u l a t o r y responses i s one way t o p r o v i d e such f l e x i b i l i t y . Others e x i s t as w e l l (such as v a r i a b l e d e a d l i n e s ) and s h o u l d be c o n s i d e r e d as we e v a l u a t e how b e s t t o d e a l w i t h t h e e n v i r o n m e n t a l effects of a i r p o l l u t i o n .

Literature 1. 2.

3. 4.

5. 6.

7. 8.

Cited

Dower, Roger, "Materials Damage: Economics and the Law", forthcoming, The American Statistician. "National Emissions Standards for Hazardous Air Pollutants," Air and Water Pollution Control Law: 1982, Environmental Law Institute: Washington, D.C., 1982; p. 288. Crandall, Robert W. "An Acid Test for Congress," Regulation, September/December 1984, Vol. 8., No. 5/6. "New Source Performance Standards," Air and Water Pollution Control Law: 1982, Environmental Law Institute: Washington, D.C., 1982; p. 159. Ibid., p. 170. The discussion of Section 169A is drawn in large part from: Trisko, E.M., "Alternative Approaches to Acid Rain Control," The Environmental Forum, April 1985, Vol. 3, No. 12. Crandall, supra p. 26. For further discussion of this topic see: Acid Rain and Transported Air Pollutants: Implications for Public Policy, U.S. Congress, Office of Technology Assessment, OTA-0-204 June 1984; "An Analysis of Issues Concerning Acid Rain," U.S. Congress, General Accounting Office, Report to the Congress, GAO/RECD-85-13, December 11, 1984; Acid Rain Legislation and the Future of the Eastern Low - Sulfur Coal Industry, U.S. Congress, Congressional Research Service, Report No. 84-89ENR, April 6, 1984.

RECEIVED

January

2, 1986


Materials Degradation Caused by Acid Rain - ACS Publications

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