SULFUR OXIDES EMISSIONS CHARGES

Sulfur oxides

are one of the most harmful

air pollutants discharged into our atmosphere today, accounting for about one-half of the total damages from air pollution.

They damage human health, vegetation, materials, and property. Sulfur oxides can permanently damage delicate lung tissue and have been linked to increased incidence of diseases such as bronchitis and lung cancer. National health costs resulting from sulfur oxides emissions are conservatively estimated at over $3.3 billion annually. The effects of sulfur oxides on materials, property, and vegetation cost the Nation an estimated additional $5 billion annually. These total damages of $8.3 billion amount to about $.20 for each pound of sulfur now emitted into our atmosphere.

Sulfur oxides result from the burning and distilling of oil and coal, the smelting of nonferrous ores, and other industrial processes. An estimated 36.6 million tons of sulfur oxides are now emitted annually as follows:

If uncontrolled, annual sulfur oxides emissions will nearly quadruple, to an estimated 126 million tons by the year 2000. Power generation accounts for an ever increasing proportion of the emissions.

The Clean Air Amendments of 1970 greatly improve the mechanism to control air pollutants, including sulfur oxides. These amendments require promulgation of national air quality standards for pollutants by the Administrator of the Environmental Protection Agency. Once standards have been promulgated, the States must prepare a plan to implement the standards within 3 years. Exemptions to the 3-year period can only be made by the EPA Administrator if adequate control methods are not commercially available or have not been available

for a sufficient period of time. An intensive research, development, and demonstration effort is underway to develop commercial technology for controlling sulfur oxides.

With no technology currently available, industry does not have an incentive to invest in control equipment until it has been tested for some time. Enforcement at all levels of government is likely to be hampered by arguments on technical feasibility. An economic incentive would provide pressure for industry to demonstrate and use technology as soon as possible to avoid the charge. It would also provide an incentive to achieve even higher levels of abatement than required by the standards. As such, it will provide a powerful tool to help achieve the air quality standards called for by the Clean Air Act.

THE PRESIDENT'S PROPOSAL

Accordingly, the President has directed the Council on Environmental Quality and the Treasury Department to develop a Clean Air Emission Charge on emissions of sulfur oxides. The charge would be levied on sulfur emitted into the atmosphere from combustion or distillation of fossil fuels and from other possible sources. To the extent that sulfur is removed from fuels, no payment of the charge would be required.

The funds generated by this charge would enable the Federal Government to increase programs to improve the quality of the environment with special emphasis on development of technology to reduce sulfur oxides emissions and programs to develop adequate clean energy supplies. These two measures--the sulfur oxides emissions charge and expanded environmental programs--should provide both the incentive for abatement and the means for doing so.

TAX ON LEAD IN GASOLINE

Air pollution from automobiles is clearly one of our major environmental problems. The smog that was originally considered to be a Southern California problem is now becoming a national phenomenon.

Lead in gasoline adds to the automotive air pollution problem in two ways. First, lead fouls some of the major emission control systems now being developed to meet the 1975 air quality standards.

Over 95

Second, lead itself is a pollutant. percent of the total lead emitted into the atmosphere derives from additives in gasoline. Lead particles can penetrate the lungs and can be retained and absorbed in the bloodstream. In urban areas, In urban areas, the margin of safety between blood levels of lead in humans and levels at which lead poisoning symptoms have been identified are growing smaller. While no clear case has been found of lead poisoning from automobile emissions, there is ample reason for concern.

The Clean Air Amendments of 1970 authorize control of lead levels in gasoline. However, a total ban is not feasible because over one-half of the vehicles now on the road require high octane gasoline which, in general, can only be achieved using lead additives. The Federal Government can and will require that unleaded gasoline be available, but it cannot assure that people will buy it. Since the cost of low-lead or nonleaded gasoline is higher, there is little incentive for car owners to purchase it. In fact, current low-lead or nonleaded gasoline is not selling well. THE PRESIDENT'S PROPOSAL

The President is again proposing a special tax on lead additives in gasoline. The tax would allow consumers to buy the low or unleaded fuels at no price disadvantage over leaded gasolines, and hence creates an economic incentive for refiners to produce more low or unleaded gasoline. This special charge would help to bring about, at reasonable costs, the gradual transition to use of unleaded gasoline, which is essential to reduce lead emissions and to meet the other emission control standards scheduled to come into effect for the 1975 automobiles.