Phase I compliance plans emphasize flexibility
Most utilities have emphasized flexibility in strategies for complying with Phase I of the Clean Air Act Amendments (CAAA) of 1990. Nearly half of the compliance methods involve fuel blending. Using allowances to comply also turned out more popular than many anticipated. Both methods give utilities flexibility to change strategies should resolving uncertainties favor one compliance method over another. In February, utilities had to file sulfur-dioxide SO[sub 2] compliance plans for the first phase in 1995. As options become clearer, utilities are allowed to file changes to their compliance plans with the Environmental Protection Agency. Falling estimates of Phase I scrubbed capacity also indicate flexibility - early 1993 estimates went from 16,000 MW, to 14,400 MW in April, and to 13,000 MW, or less, as of June. Areas of uncertainty such as future environmental regulations, global climate change, air toxics, shorter term SO[sub 2] ambient air standards, and non-attainment areas make it necessary to consider if sinking capital into scrubbers is the right investment. Other planning challenges include late and still-emerging regulations, SO[sub 2] allowance and fuel prices, state regulatory responses, and an April announcement that the Clinton administration will reveal a carbon-dioxide reduction plan in August. By the year 2000, utilities may be spending $4 billion a year or more to comply with CAAA, the most extensive pollution-reduction effort utilities have ever tackled. Targeted pollutants thought to contribute to [open quotes]acid rain[close quotes] include sulfur dioxide and nitrogen oxides. According to the former EPA Administrator William Reilly, the market-based nature of the acid-rain regulations can achieve emission reductions at $1 billion savings compared to traditional regulatory methods. Other savings estimates range as high as $3 billion.
- OSTI ID:
- 5127125
- Journal Information:
- Electric Light and Power (Boston); (United States), Vol. 71:8; ISSN 0013-4120
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
CLEAN AIR ACTS
COMPLIANCE
ELECTRIC UTILITIES
AIR POLLUTION CONTROL
ECONOMIC ANALYSIS
FUEL SUBSTITUTION
PLANNING
POLLUTION REGULATIONS
STATE GOVERNMENT
CONTROL
ECONOMICS
LAWS
POLLUTION CONTROL
POLLUTION LAWS
PUBLIC UTILITIES
REGULATIONS
290300* - Energy Planning & Policy- Environment
Health
& Safety
293000 - Energy Planning & Policy- Policy
Legislation
& Regulation