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PA EPA AWARDS TEN UTILITIES IN SEVEN STATES FOR POLLUTION PREVENTION MEASURES CUTTING ACID RAIN AND GLOBAL WARMING EMISSIONS
Release Date: 05/05/97
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FOR RELEASE: MONDAY, MAY 5, 1997
EPA AWARDS TEN UTILITIES IN SEVEN STATES FOR POLLUTION PREVENTION
MEASURES CUTTING ACID RAIN AND GLOBAL WARMING EMISSIONS
MEASURES CUTTING ACID RAIN AND GLOBAL WARMING EMISSIONS
In an action reflecting EPA's market-based, cost-efficient approach to Clean Air Act implementation, the Agency today announced the award of 7,141 acid rain bonus allowances to 10 electric power utilities for undertaking energy efficiency and renewable energy measures. Such measures lead to less public demand for fossil fuel-derived power generation, which leads to fewer emissions of sulfur dioxide (SO2) and nitrogen oxides (NOX), the main ingredients in the formation of acid rain, and carbon dioxide (CO2), the chief global warming gas. Under the acid rain requirements of the 1990 Clean Air Act Amendments, an electric utility must hold one allowance for every ton of SO2 emitted. EPA allocates a limited number of allowances to utilities to ensure that nationwide emissions will be cut in half by the year 2010 -- to less than nine million tons annually. Today's award allowances come from the Conservation and Renewable Energy Reserve, a special pool of 300,000 allowances that was set aside by Congress to reward utilities that voluntarily adopt pollution prevention projects before Acid Rain Program compliance deadlines kick in. The greatest benefit to utilities from pollution prevention projects stems from the reduction of SO2 emissions. Because SO2 allowances have a market value, avoiding emissions translates into additional allowances that the utility can bank or sell. The Reserve allowances granted today will not interfere with attainment of the nine million ton SO2 limit in 2010. EPA also emphasizes that no matter how many allowances a utility holds, it will not be allowed to emit SO2 at levels that would violate national or state health protection standards. Since the Conservation and Renewable Energy Reserve Program started in 1993, EPA has awarded a total of -- including today's allowances -- 25,644 bonus allowances. These awards have cumulatively prevented emissions of roughly 9.6 million tons of CO2, 37,825 tons of SO2, and 35,260 tons of NOX between the years 1992 and 1995. Today's 10 awardees and number of allowances received: Three are in New York --Central Hudson Gas and Electric, 182 allowances received, Consolidated Edison, 2,290 allowances, and Long Island Lighting Co., 481 allowances; two are in Minnesota -- Otter Tail Power Co., 198 allowances, and Northern States Power, 75 allowances; and the other awardees are -- Ohio, Cincinnati Gas and Electric (Cinergy), 84 allowances; Michigan, Detroit Edison, 445 allowances; Massachusetts, New England Electric Systems, Massachusetts, 847 allowances; Connecticut, United Illuminating Co., 398 allowances; and Wisconsin Electric Power Co., 2,141 allowances. For further technical information on the awards, contact Rayenne Chen at 202-233-9194 or the Acid Rain Hotline at 202-233-9620.
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