Our presentation discussed the US Acid Rain Program, the country’s first nation-wide cap and trade program. The program, which allowed utilities to adopt the most cost-effective strategy to reduce SO2 emissions, was widely considered a success so we looked into current events relating the ARP.
The owner of eight Dynegy coal plants in Illinois lobbied the EPA into setting annual caps on SO2 and NOx emissions instead of tracking pollution rates. This thinking mirrors Rick Perry’s grid reliability report on the effect of coal energy plant closures. While the report request suggested that emissions standards caused the closures, the results actually found that cheap natural gas prices were to blame.
The proposed amendment imposes a 55,000 tons/year SO2 and a 22,000 tons/year NOx cap. However, according to the US EPA Acid Rain Database, Dynegy’s eight coal plants are already emitting far less SO2 and NOx than both the current and new emissions limits.
What could be the risks of increasing emission caps for coal plants in heavily industrial areas? If this amendment goes through, will other states be inspired to act in the same way? What could be some incentives not to increase emission limits?
Group members: Desmond Lim, Salome Vergne, Shelby Slaughter, Owen Emerson, Kayla Smith
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