US embassy cable - 04OTTAWA3305

UNCLAS SECTION 01 OF 03 OTTAWA 003305 
 
SIPDIS 
 
STATE FOR OES/E: CLAUDIA MCMURRAY 
STATE ALSO FOR OES/ENV: DENNIS AND WHA/CAN: NELSON 
EPA FOR OAR/OAP: BRIAN MCLEAN 
 
E.O. 12958: N/A 
TAGS: SENV, ENRG, EWWT, CA, Environment, Air Quality 
SUBJECT: MEETING OF U.S./CANADA AIR QUALITY COMMITTEE 
 
 
1.  Summary: The U.S./Canada Air Quality Committee met 
December 2 in Ottawa to review air quality issues affecting 
the two countries.  The meeting included discussions of acid 
rain, ozone, scientific cooperation and research, 
consultations and notifications, particulate matter, marine 
vessel emissions, border air quality projects, and health 
science initiatives.  The United States was represented by 
officials from the Environmental Protection Agency, the 
Department of State, and Embassy ESTOFFs.  Representing 
Canada were officials from the ministries of Environment, 
Health, Natural Resources and Foreign Affairs, as well as 
provincial officials from British Columbia, Ontario, and 
Quebec.  Bilateral meetings on air quality have taken place 
regularly since 1991, when the two countries signed the 
U.S./Canada Air Quality Agreement.  An Ozone Annex was added 
to the Agreement in 2000, and negotiation of a Particulate 
Matter Annex is under consideration.  End summary. 
 
Acid Rain 
--------- 
 
2.  Both countries reported considerable progress in reducing 
emissions of sulfur dioxide (SO2) and nitrogen oxides (NOx), 
the precursors of acid rain.  The U.S. SO2 and NOx emissions 
reduction programs were cited as major successes, with the 
United States achieving emissions reductions well beyond 
targets.  There was a slight increase in SO2 emissions in 
2003, as industry used "banked" allowances, but the overall 
emissions trend will continue to be downward.  U.S. SO2 
emissions in 2003 were 38 percent below 1980 levels, and NOx 
emissions in 2003 were 37 percent below 1990 levels. 
 
3.  Canada has also reduced SO2 and NOx emissions beyond the 
national targets, although Canada's strategy is to pursue an 
effects-based approach rather than the U.S. tradable 
allowance system.  SO2 emissions in Canada are down by 50 
percent from 1980 levels.  Environment Canada officials said 
they are concerned, however, about tests showing increased 
soil acidification in forests in Eastern Canada.  The two 
countries have prepared a joint proposal for an Acid Rain 
Symposium at the meeting of the Ecological Society of America 
(ESA) in October 2005 in Montreal, a venue which would 
provide a broader forum for discussion and publication of 
data. 
 
Ozone Annex Compliance 
---------------------- 
 
4.  The United States and Canada signed the Ozone Annex to 
the Air Quality Agreement in December 2000 to reduce NOx and 
volatile organic compound (VOC) emissions, the precursor 
pollutants to ground-level ozone.  The affected areas, a 
transboundary region known as the Pollution Emission 
Management Area, or PEMA, includes most of the U.S. midwest 
and northeast and large portions of Ontario and Quebec.  In 
the United States, the NOx SIP (State Implementation Program) 
Call requires affected states to ensure that NOx emissions do 
not exceed specified seasonal levels.  Reduction strategies 
include implementing a cap and trade program for power plants 
and large industrial boilers, motor vehicle standards and low 
sulfur standards for fuels, as well as measures to address 
VOC controls on smaller sources. 
 
5.  Canada reported that it will meet its commitment to cap 
NOx emissions from power plants in Ontario and Quebec. 
Representatives from Ontario said that fulfilling the 
provincial government's pledge to close coal plants will 
enable the province to achieve targeted NOx emissions 
reductions, and that any new power plants in the province 
must be at least as clean as natural gas facilities.  The 
government of Ontario is also considering a Renewable 
Portfolio Standard, a requirement that a set percentage of 
electricity come from renewable sources, for any power 
imported into the province. 
 
Scientific Cooperation and Research 
----------------------------------- 
 
6.  In the last several years, joint air quality science 
efforts have focused on particulate matter (PM).  The United 
States and Canada recently completed a joint transboundary 
assessment report on PM, which may serve to guide future 
discussions regarding a possible PM Annex to the Air Quality 
Agreement (see paragraph 10).  The two countries have also 
made progress on developing emission inventories, as well as 
coordination of research and development of protocols and 
formats for sharing of data. 
 
Consultations and Notifications 
------------------------------- 
 
7.  Officials from Environment Canada expressed satisfaction 
with notification protocols regarding transboundary issues, 
citing the example of the Algoma Steel Mill Consultation 
Group.  The mill, located on the border in Sault Ste. Marie, 
Ontario, is responsible for depositing pollutants on the U.S. 
side, as well as having an affect on visibility in a National 
Park on Michigan's Upper Peninsula.  The consultation group 
provides an opportunity for stakeholders on both sides of the 
border, including tribal governments, to address the problem 
cooperatively.  Similarly, the consultation process has 
provided a framework for the United States to express its 
concerns regarding a proposed petroleum coke gasification 
power plant in Thunder Bay, Ontario, about 50 kilometers from 
the U.S. border. 
 
Particulate Matter 
------------------ 
 
8.  According to EPA officials, PM is now one of the highest 
U.S. air quality priorities.  There are significant health 
effects from PM, and EPA expects that many areas of the 
United States will be exceeding the National Ambient Air 
Quality Standards for fine PM in 2004.  The current U.S. 
focus is on inorganic precursors of PM, such as sulfates. 
Analysis of the pending U.S. proposal to further reduce fine 
PM has shown that health benefits far outweigh the cost of 
controlling PM. 
 
9.  Canadian officials said they are compiling database links 
to track PM sources such as wood burning, cement and steel 
manufacturing, and vehicle emissions.  Canada is also 
studying the contributions of agricultural ammonia to PM, and 
officials said that this year's drastic culling of chickens 
in British Columbia because of the Asian Bird Flu is serving 
as the basis of a study to compare PM concentrations from 
ammonia before and after the cull. 
 
10.  The two countries agreed to hold an informal meeting 
before September 2005 to identify issues of common interest 
regarding PM, including steps towards consideration of a PM 
Annex to the Air Quality Agreement. 
 
Marine Vessel Emissions 
----------------------- 
 
11.  Both the United States and Canada cited the need to 
institute stricter emissions standards for large marine 
vessels.  The problem is evident in the Georgia Basin/Puget 
Sound area, where both Seattle and Vancouver operate 
competitive port facilities as well as large fleets of 
passenger ferries.  According to Canadian officials, a 2000 
study showed marine vessels contributing to 33 percent of SO2 
and 22 percent of NOx emissions in the lower Fraser Valley, 
where Vancouver is located. 
 
Border Air Quality Strategy Pilot Projects 
------------------------------------------ 
 
12.  The United States and Canada are currently conducting 
three pilot projects under the Border Air Quality Strategy 
announced in June 2003.  The projects include the U.S.-Canada 
Emissions Trading Feasibility Study, the Georgia Basin-Puget 
Sound International Airshed Strategy, and the Great Lakes 
Basin Airshed Management Framework.  The latter has focused 
on the Detroit-Windsor area, with a U.S./Canada steering 
committee and four subgroups addressing airshed 
characterization, policy needs, voluntary early actions, and 
outreach/communications.  Both the United States and Canada 
are conducting joint air quality modeling, sharing data, and 
looking at the feasibility of transboundary emissions 
trading.  For the Georgia Basin/Puget Sound project, 
activities currently center on conducting airshed 
characterization of ozone, PM, and visibility patterns. 
 
Health Science Initiatives 
-------------------------- 
 
13.  Officials on both sides acknowledged significant gaps in 
the understanding of health effects of specific types of air 
pollution, especially PM.  Canada is conducting a study in 
Windsor, Ontario, on the effects of PM on children, while the 
United States is conducting a complementary study in Detroit, 
just across the border. 
 
Next Steps 
---------- 
 
14.  In addition to preliminary discussions in September 2005 
regarding a PM Annex and the possibility of an Acid Rain 
Symposium in October 2005, the two countries tentatively 
agreed to hold next year's Air Quality Committee meeting the 
week of November 9 in Washington.  The Committee also 
accepted the recently released 2004 Air Quality Agreement 
Progress Report, which may be accessed at 
http://www.epa.gov/airmarkets/usca/2004report /html. 
 
Visit Canada's Classified Web Site at 
http://www.state.sgov.gov/p/wha/ottawa 
 
CELLUCCI