Examination of utility Phase 1 compliance choices and state reactions to Title IV of the Clean Air Act Amendments of 1990

摘要

Title IV (acid rain) of the Clean Air Act Amendments of 1990 is imposing new limitations on the emission of sulfur dioxide (SO(sub 2)) and nitrogen oxides (N(sub x)) from electric power plants. The act requires utilities to develop compliance plans to reduce these emissions, and indications are that these plans will dramatically alter traditional operating procedures. A key provision of the SO(sub 2) control program deaned in Title IV is the creation of a system of emission allowances, with utilities having the option of complying by adjusting system emissions and allowance holdings. A compilation of SO(sub 2) compliance activities by the 110 utility plants affected by Phase I is summarized in this report. These compliance plans are presented in a tabular form, correlated with age, capacity, and power pool data. A large number of the Phase I units (46%) have chosen to blend or switch to lower sulfur coals. This choice primarily is in response to (1) prices of low-sulfur coal and (2) the need to maintain SO(sub 2) control flexibility because of uncertain future environmental regulations (e.g., air toxics, carbon dioxide) and compliance prices. The report also discusses the responses of state legislatures and public utility commissions to the compliance requirements in Title IV. Most states have taken negligible action regarding the regulatory treatment of allowances and compliance activities. To protect mine employment, states producing high-sulfur coal have enacted regulations encouraging continued use of that coal, but for the most part, this response has had little effect on utility compliance choices.