Extension reserve allowances and Clean Air Act compliance
The deadline for compliance with the Phase 1 sulfur dioxide (SO[sub 2]) emission reduction requirements of the Clean Air Act Amendments of 1990 falls on January 1, 1995. If they are to meet that deadline, electric utilities with generating units affected by the Phase 1 limits must begin to formulate cost-effective compliance strategies. Compliance planning is problematical. The market value of the emissions allowances provided under the act is uncertain. So is the future price and supply of low-sulfur coal. But utilities must factor in one more problem will they be able to secure enough extension reserve allowances to justify their compliance plans The act stipulates that if electric utilities choose to install scrubbers at an affected generating plant by January 1, 1997, they may request a two-year extension to the compliance deadline. Such utilities would then receive enough extension reserve allowances to provide for uncontrolled emissions during the extension period. Or would they The total number of available reserve allowances is limited. If all the eligible utilities apply for the allowances there won't be enough to go around. The American Electric Power (AEP) system alone, for example, would qualify for nearly 800,000 reserve allowances, almost 25 percent of the entire reserve, if it were to pursue the scrubbing option at the James M. Gavin Plant, just one of its many high-sulfur coal burning plants. But there is no guarantee that Gavin, or any other plant, would actually receive any extension reserve allowances.
- OSTI ID:
- 7230206
- Journal Information:
- Fortnightly; (United States), Journal Name: Fortnightly; (United States) Vol. 129:2; ISSN FRTNE8
- Country of Publication:
- United States
- Language:
- English
Similar Records
The declining trend in sulfur dioxide emissions: Implications for allowance prices
The price of pollution: A dual approach to valuing SO{sub 2} allowances
Related Subjects
290300* -- Energy Planning & Policy-- Environment
Health
& Safety
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
296000 -- Energy Planning & Policy-- Electric Power
AIR POLLUTION CONTROL
CHALCOGENIDES
CLEAN AIR ACTS
COMPLIANCE
CONTROL
ELECTRIC UTILITIES
LAWS
OXIDES
OXYGEN COMPOUNDS
PLANNING
POLLUTION CONTROL
POLLUTION LAWS
PUBLIC UTILITIES
SULFUR COMPOUNDS
SULFUR DIOXIDE
SULFUR OXIDES