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Air Quality Agreement - Progress Report 2006

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Section 1: Commitments

Acid Rain Annex

Overview

Lightning bolt during thunderstormThe Air Quality Agreement (AQA) established Annex I with specific sulfur dioxide (SO2 ) and nitrogen oxides (NOx ) emission target levels and a timetable for their achievement and made commitments to address visibility, prevent air quality deterioration in clean areas, and monitor emissions continuously. The commitments are based on both countries' acid rain reduction programs, which address the different emissions sources in the two countries. Together, we have made significant progress in preventing impacts from acid rain and reducing the acid rain on each side of the border. However, recent studies in both countries continue to show that further reductions are necessary to restore damaged ecosystems, particularly in the east.

Key Commitments and Progress: Sulfur Dioxide Emission Reductions

CANADA

Canada has been successful in reducing emissions of SO2, a principal contributor of acid rain. In 2003, SO2 emissions in the seven easternmost provinces, where elevated acid deposition continues to damage sensitive ecosystems, were 29 percent below the eastern Canada 2.3 million tonne1 cap, even though the cap expired in December 1999. Canada's total SO2 emissions have decreased about 50 percent since 1980 to 2.3 million tonnes in 2004, or 28 percent below the national cap of 3.2 million tonnes (see Figure 1).

Figure 1 Canadian SO2 Emissions from Acid Rain Sources, 1980-2004
Figure 1 Canadian SO2 Emissions from Acid Rain Sources, 1980-2004

Click to enlarge

Source: Environment Canada

In the east, where acid rain continues to damage sensitive ecosystems, three provinces, Nova Scotia, Quebec, and Ontario, developed tighter regulations in 2005 to reduce emissions from major acid rain- causing sources. Details on these and other provincial actions are found at the end of Section 1.

Despite these efforts, the control of acidifying emissions has not occurred to the extent necessary to reduce acid deposition below critical loads (harmful levels) and ensure the recovery of aquatic and terrestrial ecosystems. A critical load is the maximum amount of acidifying deposition an ecosystem can tolerate in the long term without being damaged.

The goal of Canada's acid rain program-to reduce acid deposition to aquatic and terrestrial ecosystems to below critical loads for sulfur and nitrogen-is far from being achieved.

UNITED STATES

The United States has succeeded in meeting its goal to reduce SO2 emissions from all sources by 10 million tons. Created by Title IV of the 1990 Clean Air Act Amendments, the Acid Rain Program employs a cap and trade mechanism to achieve high levels of SO2 emission reductions from the highest emitting SO2 sector, the electric power sector. In 2005, electric generating units in the United States reduced SO2 emissions by 5.5 million tons, or 35 percent, compared with 1990 levels, and more than 40 percent compared with 1980 levels (see Figure 2). For further details, including a listing of affected units and complete emissions and allowance data related to the Acid Rain Program, visit http://cfpub.epa.gov/gdm.

Figure 2 U.S. SO2 Emissions from Acid Rain Program Electric Generating Units, 1980-2005
Figure 2 U.S. SO2 Emissions from Acid Rain Program Electric Generating Units, 1980-2005

Click to enlarge

Source: EPA

The Clean Air Act sets a nationwide annual cap on SO2 emissions from electric generating facilities. The number of SO2 allowances allocated in a given year to a particular unit was determined by provisions in the Clean Air Act and the total allowances allocated each year must not exceed the national cap. Each allowance authorizes 1 ton of SO2 emissions. Every year, each individual source must hold enough allowances to cover its annual emissions. Unused allowances may be sold, traded, or banked (saved) for future use. Banked allowances give sources the flexibility to determine how they will comply with program requirements. Many sources chose to substantially decrease their emissions during Phase I and to use or sell their banked allowances in the program's later years. Thus, annual fluctuations in SO2 emissions are expected as sources move towards the final cap of 8.95 million tons in 2010.

In 2005, 3,446 electric generating units were subject to the SO2 provisions of the Acid Rain Program. Variations in the number of units participating in the program can result from retirements of some units and start-up of other units.

In 2005, a total of 9.5 million allowances were allocated. Sources actually emitted 10.2 million tons of SO2, decreasing the allowance bank by 0.7 million tons to 6.2 million tons. Over the next several years, affected sources will continue to use banked allowances to help comply with the increasingly stringent requirements of the program. In addition, some sources in the eastern United States may also rely on banked allowances to comply with the lower cap for SO2 under the Clean Air Interstate Rule (CAIR), promulgated in March 2005 and due to take effect beginning in 2010.

In addition to the electric power generation sector, other sources achieved reductions in SO2 emissions, including smelters and sulfuric acid manufacturing plants. Smelters reduced emissions from 1.84 million tons in 1980 to 271,000 tons in 2002. The use of cleaner fuels in residential and commercial burners also contributed to the 10.6 million ton decline of SO2 emissions from all sources, compared with the 1980 level of 25.9 million tons. (For more details, visit the 2002 National Emissions Inventory (NEI) at www.epa.gov/ttn/chief/trends/.)

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Key Commitments and Progress: Nitrogen Oxides Emission Reductions

CANADA

Though Canada has surpassed its NOx emission reduction target at power plants, major combustion sources, and metal smelting operations by 100,000 tonnes below the forecast level of 970,000 tonnes, the country is continuing to develop programs to further reduce NOx emissions nationwide (see section on Ozone Annex).

Mobile sources (cars, light-duty trucks, etc.) are the most significant sources of NOx emissions, accounting for just over half (51 percent) of Canadian total emissions, with the remainder caused by power plants and other sources (see Figure 26, U.S. and Canadian National Emissions by Sector for Selected Pollutants, 2004). The Canadian federal government recently passed stringent standards for NOx emissions from on-road and off-road sources effective between 2004 and 2009. Details can be found in the Ozone Annex section of the report.

UNITED STATES

Coal-fired electric utility units affected by the NOx component of Title IV of the 1990 Clean Air Act Amendments (the Acid Rain Program) continue to exceed the annual goal of reducing emissions by 2 million tons below what they would have been without the program. In 2005, the 982 NOx program-affected units reduced their combined NOx emissions to 3.3 million tons (see Figure 3).

Figure 3 U.S. Title IV Utility Unit NOx Emissions, 1990-2005
Figure 3 U.S. Title IV Utility Unit NOx Emissions, 1990-2005

Click to enlarge

Source: EPA

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Acid Deposition Monitoring, Modeling, Maps, and Trends

Airborne pollutants are deposited on the earth's surface by three processes: 1) wet deposition (rain and snow); 2) dry deposition (particles and gases); and 3) deposition by cloud water and fog. Wet deposition is comparatively easy to measure using precipitation samplers, and wet sulfate and nitrate deposition is regularly used to assess the changing atmosphere as it responds to decreasing or increasing sulfur and nitrogen emissions. In Canada, measurements of wet sulfate deposition are typically corrected to omit the contribution of sea salt sulfate at near-ocean sites (less than 62 miles (100 kilometers, or km) from the coast) to facilitate this comparison.

Figures 4 and 5 show the spatial patterns of wet sulfate deposition for two separate five-year periods, 1990-1994 and 2000-2004. Figures 6 and 7 present maps of wet nitrate deposition for the same five- year periods. No deposition contours are shown in Canada in Figures 5 and 7, because Canadian experts judged that the locations of the contour lines were unacceptably uncertain because of data paucity. This paucity is related to the following factors: the Province of Ontario ceased collecting wet deposition data in 1999; at this time, no validated wet deposition data are available from the Province of Quebec for years after 2002; the Province of Newfoundland and Labrador closed its monitoring network early in 2004; and the provinces of British Columbia, Saskatchewan, and Manitoba do not carry out regional-scale wet deposition monitoring. As a result, the five-year average deposition values in Canada are shown as colored circles at the locations of the remaining federal/provincial/territorial measurement sites. National experts from both countries are collaborating to determine consistent common uncertainty limits for future analyses. The maps for 1990-1994 differ slightly from those shown in the 2004 Progress Report because stricter criteria for data completeness and improved detail were used to develop the new maps shown here.

Figure 4 Mean sulfate wet deposition for 1990-1994, for comparison with Figure 5
Figure 4 Mean sulfate wet deposition for 1990-1994, for comparison with Figure 5

Figure 5 Mean sulfate wet deposition for 2000-2004
Figure 5 Mean sulfate wet deposition for 2000-2004

Note: Sulfate measurements are corrected for sea salt composition where appropriate.

Figure 6 Mean nitrate wet deposition for 1990-1994, for comparison with Figure 7
Figure 6 Mean nitrate wet deposition for 1990-1994, for comparison with Figure 7

Figure 7 Mean nitrate wet deposition for 2000-2004
Figure 7 Mean nitrate wet deposition for 2000-2004

Source: National Atmospheric Chemistry (NAtChem) Database (www.msc-smc.ec.gc.ca/natchem/index_e.html) and National Atmospheric Deposition Program (NADP)

It can be seen from the maps that wet sulfate deposition remains highest in eastern North America, and the gradient follows an axis running from the confluence of the Mississippi and Ohio rivers through the lower Great Lakes. A comparison of the 2000-2004 sulfate deposition map (Figure 5) with the 1990-1994 map (Figure 4) shows significant reductions in wet sulfate deposition in both the eastern United States and much of eastern Canada between the two periods.

The pattern for wet nitrate deposition (Figures 6 and 7) shows a similar southwest-to-northeast axis, but the high-deposition area is more tightly focused around the lower Great Lakes. Reductions in wet nitrate deposition between the two five-year periods were more modest than for wet sulfate. The absence of data for Quebec and Newfoundland and Labrador precludes any firm conclusions on deposition trends for those provinces.

The foregoing changes in sulfate and nitrate wet deposition from the first half of the 1990s to 2000 through 2004 are considered to be directly related to decreases in SO2 and NOx emissions in both Canada and the United States. These emission reductions are outlined in the previous sections dealing with key commitments and progress on SO2 emission reductions and NOx emission reductions.

In Canada, wet and dry deposition are measured by the Canadian Air and Precipitation Monitoring Network (CAPMoN) (www.msc-smc.ec.gc.ca/capmon), and wet deposition alone is measured by several provinces and one territory. In the past two years, a few additional measurement sites were added to CAPMoN in the more remote regions of Canada in order to provide more extensive deposition data. However, the data available for 2000-2004 in Canada were insufficient to permit interpolation and contouring.

The United States has three coordinated acid deposition monitoring networks:

  1. The National Atmospheric Deposition Program/National Trends Network (NADP/NTN), a collaboration of federal, state, and nongovernmental organizations measuring deposition chemistry (http://nadp.sws.uiuc.edu).
  2. The NADP/Atmospheric Integrated Research Monitoring Network (AIRMoN), a subnetwork of NADP funded by the National Oceanic and Atmospheric Administration (http://nadp.sws.uiuc.edu/AIRMoN/).
  3. The Environmental Protection Agency (EPA)/ National Park Service Clean Air Status and Trends Network (CASTNET), which estimates dry deposition based on observational data (www.epa.gov/castnet).

Wet deposition measurement procedures for all U.S. and Canadian networks are acceptably comparable, and the wet deposition data are available from the individual networks and from a binational database that is accessible to the public at www.msc.ec.gc.ca/natchem/index_e.html. Canada and the United States have developed different methods for estimating dry deposition based on measured data and modeled dry deposition velocities. These methods have improved over the years, and both indicate the importance of dry deposition as a major contributor to total deposition in some areas of the continent. However, the results differ in detail, and no joint analysis is available at this time. Efforts are under way between the two countries to reconcile the different methods and results.

Acid Rain Program Benefits Far Exceed Costs

A recent analysis2 of the U.S. Acid Rain Program estimates annual benefits of the program in 2010 to both Canada and the United States at $122 billion and costs for that year at $3 billion (in 2000 dollars)-a 40- to-1 benefit/cost ratio. These quantified benefits in the United States and Canada are the result of improved air quality prolonging lives, reducing heart attacks and other cardiovascular and respiratory problems, and improving visibility. The complete report is available in volume 77, issue 3, of the Journal of Environmental Management at www.sciencedirect.com/science/journal/03014797.

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Emissions Monitoring

CANADA

Canada has met its commitments to estimate emissions of NOx and SO2 from new electricity utility units and existing electricity units greater than 25 megawatts (MW) using a method of comparable effectiveness to continuous emission monitoring systems (CEMS) and to investigate the feasibility of using CEMS by 1995.

In Canada, trading of SO2 and NOx emissions is not currently a driver for electronic data reporting and CEMS installation. In December 2005, Environment Canada published an update of its guidelines for CEMS (Protocols and Performance Specifications for Continuous Monitoring of Gaseous Emissions from Thermal Power Generation, Report EPS 1/PG/7 (revised)). The report can be viewed at www.ec.gc.ca/cleanair-airpur/CAOL/electricity_Generation/protocols_performance/toc_e.cfm. This update was based, in part, on experience gained from the use of 40 CFR Part 75 specifications for CEMS in the United States. Although CEMS and data reporting requirements for power plants and industrial sources involved in emissions trading in the United States are not fully mirrored in Canada, it has been concluded that EPS 1/PG/7-compliant CEMS in Canada would meet Canadian monitoring requirements for domestic purposes and would achieve accuracy comparable to that achieved through 40 CFR Part 75.

As laid out in the Canada-U.S. Emissions Cap and Trading Feasibility Study, if a cross-border emissions cap and trading system were established, 40 CFR Part 75 requirements would need to be implemented in Canada. One major difference between Canada's EPS 1/PG/7 guidance and 40 CFR Part 75 is the emission data acquisition and reporting requirements in the United States.

A study is being undertaken to estimate the costs of upgrading from existing emission monitoring systems in place at Canadian electric generating units to CEMS that would be compliant with 40 CFR Part 75. Preliminary conclusions from this work indicate that the costs for Canadian electricity generators would relate to the type of CEMS chosen and to the type of unit (coal-fired, oil or gas, peaking, low mass emitter) in which the monitor would be installed, with coal- fired generators being the most affected. As well, all facilities would be required to add 40 CFR Part 75 data acquisition and reporting capabilities, and there would be some incremental control system costs for each unit in each facility.

UNITED STATES

Under the Acid Rain Program, affected units are required to measure and record emissions using CEMS (usually a concentration monitor in conjunction with a flow monitor to determine mass emissions) or an approved alternative measurement method and to report emissions electronically on a quarterly basis. All of the monitoring systems must pass rigorous quality assurance tests and operate with a high degree of accuracy and reliability.

In fact, the average percent monitor data availability (a measure of monitoring systems' reliability) for 2005 was 99 percent for coal-fired units. This number is based on reported monitor data availability for SO2 monitors (99.5 percent), NOx monitors (97.5 percent), and flow monitors (99.1 percent). Additionally, in recent years, new audit capabilities have been added, including software that performs hourly checks to catch errors, miscalculations, and oversights in monitoring and reporting systems. These audits help ensure the completeness, high quality, and integrity of emissions data as well as highlight a number of potential "red flags" that require additional verification. Accurate emissions monitoring remains the backbone of trading program integrity. Initially, electronic audits were conducted on the units that used continuous emission monitors. Beginning in 2006, EPA increased its electronic audit capabilities and now conducts audits on all affected units, regardless of the monitoring methodology used. For instance, all oil and gas units- including those that use alternative methods-are also audited. Results from the audits are promptly sent to the source, and correction of critical errors is required. In addition to the electronic audits, targeted field audits are conducted on sources that report suspect data. Compliance was virtually 100 percent in 2005, with only one of 3,446 units out of compliance.

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Preventing Air Quality Deterioration and Protecting Visibility

CANADA

Pollution prevention, continuous improvement (CI), and Keeping Clean Areas Clean (KCAC) activities are all part of the Canada-wide Standards for particulate matter (PM) and ozone to prevent the deterioration of air quality and address the pollutants involved in visibility impairment. Visibility (how far an object can be seen) is often the first perception of smog, since PM reduces the clarity of what we see when present at high enough levels in the air.

Clean areas in Canada include our national parks. Environment Canada and Parks Canada have begun to informally explore options for air quality monitoring in these areas, including a program for visibility monitoring.

As part of the options being explored, Environment Canada has made an agreement with EPA and the U.S. Interagency Monitoring of Protected Visual Environments (IMPROVE), the program that supports visibility monitoring in U.S. national parks and wilderness areas. Under this agreement, IMPROVE has lent its visibility monitoring equipment to Environment Canada for evaluation with comparable equipment designed by Environment Canada. The IMPROVE equipment is currently deployed at the Environment Canada air quality research monitoring station located at Egbert, Ontario.

The Province of British Columbia continues to elaborate its approach to addressing CI and KCAC. For example, the Greater Vancouver Regional District (GVRD) adopted a new Air Quality Management Plan (AQMP) in October 2005 to maintain and improve air quality in the lower Fraser Valley airshed. The new AQMP aims to minimize the risk to human health from air pollution, improve visibility, and reduce the GVRD's contribution to global climate change. As the Canada-wide Standard for PM2.5 (particulate matter less than or equal to 2.5 microns) is being met throughout the lower Fraser Valley and the Canada-wide Standard for ozone is exceeded only in the eastern part, the AQMP supports the CI/KCAC provisions of the Canada-wide Standards. New health-based ambient air quality objectives, established as part of the AQMP, are more stringent than the Canada-wide Standards for ozone and PM2.5. In addition, CI, defined as "taking remedial and preventive actions to reduce emissions from human activities towards the long-term goal of reducing overall ambient concentrations and health risks," is a fundamental principle of the AQMP. The AQMP's emission reduction actions will reduce direct emissions of PM and ozone and PM precursors.

UNITED STATES

The U.S. Prevention of Significant Air Quality Deterioration Program protects public health from adverse effects that may occur from the addition of new sources of air pollution and ensures that air quality in many areas of the country remains better than levels mandated by the National Ambient Air Quality Standards (NAAQS). The program preserves and protects air quality in Class I (pristine) areas by assessing impacts on visibility before construction permits are issued. Class I areas include national parks and wilderness areas, such as the Grand Canyon, Yosemite, and the Great Smokies. The Regional Haze Program requires states to develop plans to improve visibility conditions in Class I areas with the goal of restoring natural visibility conditions in about 60 years. The first set of plans is due in early 2008. Improvements in visibility for the eastern United States are also expected from implementation of the CAIR.

The pollutants that impair visibility by scattering and absorbing light include sulfate, nitrate, and organic carbon compounds. Sulfate and nitrate particles are the result of SO2 and NOx gases that are transformed in the atmosphere. Sulfates are generally the largest contributor to visibility impairment in both the east and the west, although humidity, organic carbon, and soil dust also play important roles.

"Standard visual range" is defined as the farthest distance a large dark object can be seen. This distance is calculated using fine and coarse particle data by multiplying concentrations of various types of particles by their extinction efficiency (how much they block light), adding those up, then adding the clean atmosphere extinction (scattering of light from gas molecules). The extinction calculation is done for each 24-hour period during which particle samples are taken. Currently, these samples are taken every third day, or 121 days per year. Therefore, the annual average standard visual range is the average of the calculated standard visual range for these 121 sample days. The visual range under naturally occurring conditions without pollution in the United States is approximately 45-90 miles (75-150 km) in the east and 120-180 miles (200-300 km) in the west.

Historical data from the IMPROVE network indicate modest improvement in visibility during the early 2000s. The level of visibility impairment on the worst visibility days in the west is similar to the levels seen on the best visibility days in the east. In 2004, the mean visual range for the worst days in the east was only 20 miles (32 km), compared with 85 miles (136 km) for the best visibility days (see Figure 8). In the west, visibility impairment for the worst days remained relatively unchanged over the past decade, with the mean visual range for 2004 (58 miles, or 94 km) nearly the same as the 1992 range (61 miles, or 98 km). Although the period showed moderate improvements in some areas, overall visibility in the eastern United States is still significantly impaired in some national parks and wilderness areas, especially on days of high relative humidity.

Figure 8 Annual Average Standard Visual Range in the Contiguous United States, 2004
Figure 8 Annual Average Standard Visual Range in the Contiguous United States, 2004

Click to enlarge

Source: National Park Service

Each state is a member of an independent Regional Planning Organization (RPO), which has been established to help member states work together to develop strategies to address visibility and regional haze. The five RPOs are the Mid-Atlantic/Northeast Visibility Union, the Visibility Improvement State and Tribal Association of the Southeast, the Midwest RPO, the Central States Regional Air Partnership, and the Western Regional Air Partnership. The RPOs hold their own technical work group sessions throughout the country to make decisions on joint technical work. The technical work to support the first round of state plans has resulted in a better understanding of transport near the border. The RPOs coordinate technical information on emissions, ambient monitoring, and air quality modeling activities. The RPOs are seeking ways for more involvement by air quality agencies in Canada in their assessment of pollutant formation and transport. For more information on the U.S. visibility program and RPOs, see www.epa.gov/air/visibility/index.html.

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Consultation and Notification Concerning Significant Transboundary Air Pollution

JOINT EFFORTS

Since 1994, Canada and the United States have continued to follow an established set of notification procedures to identify possible new sources and modifications to existing sources of transboundary air pollution within 62 miles (100 km) of the border. Notifications can occur for new and existing sources located outside of the 62-mile (100-km) region if governments believe that there is a potential for transboundary pollution. Since the last progress report in 2004, Canada has notified the United States of 7 additional sources, for a total of 44. The United States has notified Canada of 13 additional sources, for a total of 47.

Transboundary notification information is available on the Internet sites of the two governments at:

Canada:
www.ec.gc.ca/cleanair-airpur/CAOL/canus/canus_applic_e.cfm

United States:
www.epa.gov./ttn/gei/uscadata.html

Following guidelines approved by the Air Quality Committee in 1998 for consultations requested by a Party on transboundary pollution concerns, Canada and the United States report ongoing progress on joint discussions concerning the Boundary Dam Power Station (BDPS) near Estevan, Saskatchewan, and Algoma Steel, Inc. (ASI) in Sault Ste. Marie, Ontario.

Boundary Dam

A binational BDPS Informal Consultation Group was formed to address transboundary pollution concerns around Estevan, Saskatchewan, and Burke County, North Dakota. Partners included representatives from Environment Canada, EPA, the North Dakota Department of Health, Saskatchewan Environment, and SaskPower (the operator of the BDPS). A transboundary ambient air monitoring network was established to track air quality changes in the region.

Since that time, SaskPower has completed the installation of electrostatic precipitators on all of its units, resulting in the virtual elimination of any visible PM plume. In 2004, an interim report summarized air quality trends from 1998 to 2003 and concluded that no exceedances of either U.S. or Canadian standards had been observed at any of the monitoring sites. Performance audits conducted in 2005 noted that all sites complied with the necessary operational and quality assurance criteria.

Accordingly, the BDPS Informal Consultation Group has proposed a transition plan to conclude this successful consultation. A report will be presented to the Canada-U.S. Air Quality Committee at its annual meeting in the fall of 2006, detailing the disposition of the monitoring equipment as well as summarizing the air quality data gathered in the region by the transboundary monitoring network.

Algoma Steel

The Canada-U.S. Algoma informal consultations began in 1998 to address concerns regarding local cross-border pollution. Representatives from the United States and Canada hold regular discussions to coordinate monitoring programs in the Sault Ste. Marie area and to address progress in abating potential transboundary pollution from the ASI facility in Ontario. Air quality monitoring on the Canadian side has been ongoing since the 1960s and on the U.S. side was initiated by the Inter-Tribal Council of Michigan in 2001. Sampling of fine PM and toxic air pollutants continues on both sides of the border.

During the last two years, Canadian and U.S. representatives have continued to meet to discuss progress towards reducing emissions from ASI and to share results of air monitoring studies. The data analysis subgroup has completed a draft report summarizing results of the ambient air monitoring program in the binational area during 2001-2003. Canadian and U.S. partners have agreed that this draft report should be identified as an "interim" document, and future reports will update the monitoring results, including the 2004-2005 data. The quality assurance/quality control subgroup continues to evaluate the monitoring equipment and the methods employed by both countries to ensure comparability of monitoring results.

Trend data from the consultation indicate that although emission rates have declined, total steel production at ASI has increased. The combined impact of these changes on air quality is not yet known, and citizen complaints are still being received by local agencies. The monitoring data also indicate that there are no exceedances of the NAAQS at the Michigan monitoring sites. However, several pollutants, such as total suspended particulates and coarse particulate matter (particulate matter less than or equal to 10 microns, or PM10), exceed Ontario air quality criteria in the west end of Sault Ste. Marie. The Algoma bilateral consultation group will continue to monitor and report on this facility.

 Sydney Steel Company, Nova Scotia

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1 One tonne is equal to 1.1 short tons.

2 Chestnut, L.G. and Mills, D.M. (2005) A fresh look at the benefits and cost of the US Acid Rain Program. Journal of Environmental Management, Vol. 77, No. 3, pp. 252-266.

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