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10.2 The Clean Air and Clean Water Acts

10.2.1 The Clean Air Act (“CAA”)
42 U.S.C. § 7401, et seq. The CAA regulates air pollutants under federal standards implemented and
enforced by the states. The CAA is divided into six titles: (1) Title I deals with control of pollution from
stationary sources; (2) Title II deals with control of pollution from mobile sources; (3) Title III addresses
general and administrative matters; (4) Title IV addresses emissions and sources that contribute to acid
deposition; (5) Title V establishes an operating permit requirement for sources of air pollution; and (6)
Title VI regulates substances that deplete stratospheric ozone.

The CAA requires EPA to promulgate national ambient air quality standards (“NAAQS”) for certain
pollutants to protect the public health (primary NAAQS) and protect the public welfare (secondary
NAAQS). Each state is required to adopt a plan, called a State Implementation Plan (“SIP”), that limits
emissions from air pollution sources to the degree necessary to achieve and maintain the NAAQS. The
SIP provides emission limitations, schedules and timetables for compliance by stationary sources.

The CAA focuses on “major” stationary sources – defined as sources which emit, or have the potential
to emit, more than a prescribed amount of a designated pollutant. Because many industrialized urban
areas have not attained the standards, the 1990 Amendments established deadlines and requirements
for Nonattainment areas. Control requirements for individual facilities generally are more stringent in
Nonattainment areas, however, states are also required to adopt measures to prevent significant
deterioration of air quality (“PSD”) in “clean air areas.”

In addition to the SIP regulatory scheme, the Act establishes two other major regulatory programs for
stationary sources. The New Source Performance Standards (“NSPS”) program establishes stringent
emissions limitations for “new” sources in designated industrial categories regardless of the state in
which the source is located or the air quality associated with the area. An owner or operator of a new or
modified source must demonstrate compliance with the NSPS within 180 days of initial start–up of the
unit. In addition, the National Emissions Standards for Hazardous Air Pollutants (“NESHAP”) regulates
emissions of pollutants for which no NAAQS is applicable but which cause increases in mortality or
serious illnesses.

10.2.2 The Clean Water Act (“CWA”)
33 U.S.C. § 1251, et seq. The CWA provides EPA with regulatory jurisdiction over discharges
of pollutants into the waters of the United States, which includes the coastal waters, rivers and
their tributaries, wetlands, and other bodies of water. The goal of the CWA is to restore and
maintain swimmable, fishable waters throughout the U.S. and to eliminate discharge of
pollutants into the nation’s waters.

The § 402 National Pollutant Discharge Elimination System (“NPDES”) is a permitting program
to regulate the point discharges of pollutants into waters of the U.S. Under the NPDES
Program, EPA, or an authorized state, processes permit requests. As discussed below, EPA
has approved the State of Florida NPDES program. NPDES Permits set forth the national and
state limits for pollutant discharges, as well as site specific compliance monitoring and reporting
requirements. Such pollutant discharge limits generally apply at the “end-of–pipe” and are
intended to ensure that the water quality is adequate for the water’s designated use, such as
boating, swimming or fishing.

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