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E-M:/ EPA Inspector General

Enviro-Mich message from "Alex J. Sagady & Associates" <ajs@sagady.com>

This news release mentions that Michigan's Russell Harding-inspired
air pollution trading program has been criticized by the EPA
Inspector General....

1625 K Street NW, Suite 790* Washington, D.C. 20006*(202) 785-9625
www.cleanairtrust.org <http://www.cleanairtrust.org>

The Hon. Robert T. Stafford
Honorary Co-Chairman
The Hon. Edmund S. Muskie (1914-1996)
Founding Co-Chairman

For Immediate Release           Contact: Frank O'Donnell (202) 785-9625
December 19, 2002                                       (202) 262-6026


White Paper Calls for Halt to `Flawed' Practice

(Washington, D.C.) - Pollution trading - heavily promoted by the Bush
Administration as an alternative to the Clean Air Act - has generally
been a dismal failure, according to a landmark White Paper commissioned
by the Clean Air Trust.

The White Paper, authored by Curtis A. Moore, former Republican Counsel
to the Senate Environment and Public Works Committee, is perhaps the
first comprehensive critical look at pollution trading, which is also
advocated by big polluters.

The White Paper calls on policymakers to consider scrapping the process,
which permits polluters to buy and sell the right to pollute rather than
control pollution at each major industrial plant.  Moore cites "grave
flaws" uncovered by his investigation of past trading efforts -
particularly when trading has been attempted as a means to protect
public health.

"Trading is policy that ought to be avoided altogether, except in the
most narrow and carefully monitored circumstances," Moore writes.

"Serious consideration should be given to repealing trading programs now
in existence" and "replacing them with policies of demonstrated

Frank O'Donnell, executive director of the Clean Air Trust, noted that
the Bush Administration recently weakened the so-called "new source
review" rules designed to prevent increased pollution when major
smokestack industries make major modifications.   The administration
also seeks repeal of new source review as part of a "multi-pollutant"
emission-trading scheme.

"The Bush Administration alleges that its trading scheme would be an
adequate substitute for the current Clean Air Act.   That's why this
White Paper was begun six months ago," said O'Donnell.

"This White Paper clearly shows it would be a terrible mistake and
dangerous for public health to adopt the tradeoff offered by the
Administration," said O'Donnell.

O'Donnell noted that the administration -- over the objections of
environmentalists - has also signaled it will permit pollution trading
between highway trucks and engines used in diesel heavy equipment.
"Pollution trading of that sort would, at best, delay and weaken
controls on heavy equipment.  Depending on the fine print, it could also
jeopardize cleanup of diesel trucks," O'Donnell added.

He noted that EPA's Inspector General recently criticized several
trading programs in Michigan and New Jersey, citing the lack of
"safeguards" to protect public health.  New Jersey's government has
declared its trading scheme - initiated by then-Governor Christine Todd
Whitman - a failure.

In his investigation of prior emission-trading programs, Moore focused
closely on three prior trading schemes: the lead-in gasoline trading
program, which began in 1974; the Regional Clean Air Incentives market,
or RECLAIM, which started in Southern California in 1993; and the acid
rain trading program, which was created by the 1990 Clean Air Act

"There can be little doubt trading certainly failed in two of the three
cases examined here, RECLAIM and leaded gas, and seems destined to do
the same in the third, acid rain," Moore writes.  "The record is so
stark and compelling that any expansion of trading beyond its current
scope should be halted, and existing regimes should be rescinded before
they cause further damage."

Moore identified key shortcomings in existing trading programs,

                 *       Failure to adequately protect human health and
the environment.

                 *       A stifling of innovation in pollution controls.

                 *       Extraordinary delays.

                 *       Secrecy and limits on the public's right to know
about pollution.

                 *       Shifting of burdens from polluters to breathers.

                 *       Fraud and malfeasance.


Alex J. Sagady & Associates  http://my.voyager.net/~ajs/sagady.pdf

Environmental Enforcement, Technical Review, Public Policy and
Communications on Air, Water and Waste/Community Environmental Protection

PO Box 39,  East Lansing, MI  48826-0039
(517) 332-6971; (517) 332-8987 (fax); ajs@sagady.com

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