The future(s) of emission allowances

Journal Article · Sun Feb 28 23:00:00 EST 1993 · Public Utilities Fortnightly; (United States)

OSTI ID:6500933

Rosenzweig, K M; Villarreal, J A

The Clean Air Act Amendments of 1990 (CAAA) established a sulfur dioxide emission allowance system to be implemented by the US Environmental Protection Agency (EPA). Under the two-phase implementation of the program, electric utilities responsible for approximately 70 percent of SO[sub 2] emissions in the United States will be issued emission allowances, each representing authorization to emit one ton of sulfur dioxide during a specified calendar year or a later year. Allowances will be issued to utilities with electric-generating units affected by the CAAA limits, as well as to certain entities which may choose to opt-in to the program. Each utility or other emission source must hold a number of allowances at least equal to its total SO[sub 2] emissions during any given year. Unused allowances may be sold, traded, or held in inventory for use against SO[sub 2] emissions in future years. Anyone can buy and hold allowances, including affected utilities, non-utility companies, SO[sub 2] allowances brokers and dealers, environmental groups, and individuals. During Phase I of the program, allowances equivalent to approximately 6.4 million tons of SO[sub 2] emissions will be allocated annually to a group of 110 large, high-SO[sub 2]-emitting power plants. In Phase II, virtually all power-generating utilities (representing approximately 99.4 percent of total US utility emissions) will be subject to the program. The number of allowances issued will increase to approximately 8.9 million a year, with certain special allocations raising the actual number issued to 9.48 million between the years 2000 to 2009, and 8.95 million yearly thereafter. Thus, the CAAA goal of annual emissions of 9 million tons should be achieved by 2010, when virtually all US emission sources will be participating in the program.

• OSTI ID: 6500933
• Journal Information: Public Utilities Fortnightly; (United States), Journal Name: Public Utilities Fortnightly; (United States) Vol. 131:5; ISSN PUFNAV; ISSN 0033-3808
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
290300* -- Energy Planning & Policy-- Environment
Health
& Safety
AIR POLLUTION CONTROL
ALLOCATIONS
CHALCOGENIDES
CONTROL
ELECTRIC UTILITIES
LAWS
MARKET
OXIDES
OXYGEN COMPOUNDS
POLLUTION CONTROL
POLLUTION LAWS
POLLUTION REGULATIONS
PUBLIC UTILITIES
REGULATIONS
SULFUR COMPOUNDS
SULFUR DIOXIDE
SULFUR OXIDES
US CLEAN AIR ACT