Decreasing uncertainty of Title IV implementation with an Extension Allowance Pool
- Resource Management International, Inc., Sacramento, CA (United States)
In 1990, the Clean Air Act was amended amidst a flurry of lobbying. One of the special provisions added was Section 404(d) (see also 40 CFR 72.42) to extend the deadline for compliance under Title IV from 1995 to 1997 for units that committed to install high-efficiency SO{sub 2} scrubbers. Title IV created the Acid Rain Program to reduce emissions of SO{sub 2} and NO{sub x} from electric utility boilers. Section 404(d) was added as a result of the efforts to encourage the continued use of high sulfur coal. Congress allocated 3.5 million allowances for EPA to award under these provisions. To reduce the uncertainty of being selected to receive extension allowances through EPA`s lottery system, utilities interested in participating in the Program formed the Extension Allowance Pool. The Extension Allowance Pooling Agreement was executed as of March 1992 by 16 utilities. The underlying principle of the Pool is that those utilities whose control units were selected to receive extension allowances would share a portion of those allowances with those Pool participants that were not chosen by EPA. The Pool also provided for the various activities required to implement these arrangements.
- OSTI ID:
- 271849
- Report Number(s):
- CONF-950196--
- Country of Publication:
- United States
- Language:
- English
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