Allowance trading: Market operations and regulatory response
The use of the SO[sub 2] allowance system as defined by Title IV of the 1990 Clean Air Act Amendments offers utilities greater compliance flexibility than EPA technology standards, State Implementation Plan (SEP) performance standards, or EPA bubble/offset strategies. Traditional methods at best offered the utility the ability to trade emissions between different units at a particular plant. The SO[sub 2] emissions trading system advocated under Title IV will allow a utility to trade emissions across its utility system, and/or trade emissions between utilities to take advantage of interfirm control cost differences. The use of transferable emission allowances offers utilities greater flexibility in the choice of how to control emissions: the choices include fuel switching, flue gas scrubbing, environmental dispatch, repowering, and even the choice not to control emissions [as long as the New Source Performance Standards (NSPS) and Prevention of Significant Deterioration (PSD) requirements are met]. The added flexibility allows utilities to choose the least cost manner of compliance with Title IV requirements. It is hoped (intended) that pollution control cost-minimization by individual utilities will in turn reduce the cost of controlling SO[sub 2] for the electric utility industry in aggregate. In addition, through the use of NO[sub x] emission averaging, the utility would average NO[sub x] emissions from different point sources in order to comply with the prescribed emission standard.
- Research Organization:
- Argonne National Lab., IL (United States)
- Sponsoring Organization:
- DOE; USDOE, Washington, DC (United States)
- DOE Contract Number:
- W-31109-ENG-38
- OSTI ID:
- 6673568
- Report Number(s):
- ANL/EAIS/CP-78886; CONF-920990--1; ON: DE93008667
- Country of Publication:
- United States
- Language:
- English
Similar Records
Incentive mechanisms as a strategic option for acid rain compliance
Emissions trading and compliance: Regulatory incentives and barriers
Related Subjects
017000 -- Coal
Lignite
& Peat-- Legislation & Regulations
20 FOSSIL-FUELED POWER PLANTS
200202* -- Fossil-Fueled Power Plants-- Waste Management-- Noxious Gas & Particulate Emissions
AIR POLLUTION CONTROL
COMPLIANCE
CONTROL
ELECTRIC UTILITIES
EMISSION
FLEXIBILITY
FOSSIL-FUEL POWER PLANTS
LAWS
MECHANICAL PROPERTIES
NATIONAL ORGANIZATIONS
POLLUTION CONTROL
POLLUTION LAWS
POWER PLANTS
PUBLIC UTILITIES
TENSILE PROPERTIES
THERMAL POWER PLANTS
TRADE
US CLEAN AIR ACT
US EPA
US ORGANIZATIONS