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7.0 U.S.-Ontario transboundary smog reduction initiatives

Ontario's Advocacy Role: More than 50 per cent of Ontario's smog problem originates from emitters of nitrogen oxides (NOx) and volatile organic compounds in the United States.

Reduction of transboundary pollution is being encouraged and advocated through cooperative, mutually beneficial activities with the U.S. This year, Ontario stepped up its efforts and is taking an advocacy role to protect the province's air, environment and health interests. In February 1999, the U.S. Court of Appeals granted Ontario intervener status, allowing the province to appear in court to support the U.S. Environmental Protection Agency's order requiring 22 states plus the District of Columbia to submit State Implementation Plans (a process under the Clean Air Act known as a SIP Call). The SIP Call (Sept. 24, 1998) set caps for states to limit their NOx emissions and required 22 states and the District of Columbia to submit SIPs by Sept. 30, 1999. The rule requires that emission reduction measures be in place by May 1, 2003, and that caps be met by 2007. This rule would reduce emissions in the United States and reduce transboundary pollution into Ontario. The Plans will show how to reduce transboundary air pollu- tion by May 2003. The EPA rule, intended to reduce U.S. ground level ozone and emissions of NOx, is being challenged by a coalition that includes Michigan, Ohio, Indiana, five other states and major polluters such as power and coal mining companies. Ontario filed its brief on July 16, 1999, in support of the EPA. In March 2000, the U.S. Court of Appeals ruled in favour of the EPA.

Canada-United States Air Quality Agreement:

The original Canada-U.S. Air Quality Agreement was signed in March 1991 to address transbound- ary air issues. Initially, the focus was on acid rain, and this focus has now been extended to the transboundary and international issues of smog transport.

Resolution of transboundary air quality issues usually requires action at the federal level, as the federal government has traditionally been responsible for reducing transboundary pollution. A number of bilateral agreements are in place between Canada and the U.S. such as the Canada-U.S. Air Quality Agreement (AQA) and the Canada-U.S. Great Lakes Water Quality Agreement.

A more recent AQA, signed April 7, 1997, provides for the development of a Joint Plan of Action for Addressing Transboundary Air Pollution, which is the first step toward negotiating new annexes on ground-level ozone and particulate matter in the atmosphere. Canada is co-operating with the U.S. in a transboundary ozone manage- ment pilot project, known as the Regional Ozone Study Area (ROSA), under this agreement.

Canada-U.S. Air Quality Agreement: ozone annex

Energy and environment ministers agreed in October 1998 that Canada should explore the development of an ozone annex to the Canada-U.S. Air Quality Agreement. The Ontario Ministry of the Environment has been invited to represent the other provinces to advise the Canadian government as part of the Canadian negotiating team for developing the annex.

U.S. initiatives will also benefit Ontario in the longer term. The State Implementation Plans (noted above) and the backstop strategy of a proposed Federal Implementation Plan (should the 22 states not submit their SIPs) are expected to benefit Ontario's air quality. As well, a model NOx Budget Trading Program, included in the SIP Call, will allow states to achieve over 90 per cent of the required emissions reductions in a highly cost-effective manner.

Ontario's ability to participate in the U.S. "cap-and-trade" scheme will likely require an investment in implementing its own cap levels and trading provisions similar to those implemented by the U.S. Work in this direction has already been under way with the PERT initiative.

Ontario's strategy to reduce transboundary pollution includes continuing to look to the federal government for leadership in pursuing emission reductions with the U.S.:

• Co-operating with the federal government by providing advice to the Canada/U.S. Air Quality Committee, and providing technical expert support;
  
  
• Monitoring the U.S. for opportunities for co-ordination;
  
  
• Influencing the U.S. position through contacts and visits; and,
  
  
• Playing an advocacy role to support the U.S. EPA in its efforts to reduce transboundary pollution.

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