EPA430/R-96-004
United States
Environmental Protection
Agency
Air and
Radiation
(6204-J)
430R96004

 May 1996
            Acid Rain Program
             Update No. 3
            Technology and Innovation
       Recycled/Recyclable
      \ Printed op paper that contain
      1 at least 50% recycled fiber
                                      PROGRAM

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T
he  Acid  Rain  Program  Overview
                                    he Acid Rain Program was established under Title IV of the 1990 Clean
                                    Air Act Amendments. The program calls for major reductions of sulfur
                                    dioxide (SO2) and nitrogen oxides (NOx), the pollutants that cause acid
                            rain, while establishing a new approach to environmental management.  The
                            program also sets a permanent cap on the total amount of sulfur dioxide that may
                            be emitted by electric utilities nationwide, about one half of the amount emitted
                            in 1980.
                            Acid rain causes acidification of lakes and streams and contributes to damage of
                            trees at high elevations.  In addition, acid rain accelerates the decay of building
                            materials, paints, and cultural artifacts, including irreplaceable buildings, statues,
                            and sculptures. Prior to falling to the earth, SO2 and NOx gases and their particulate
                            matter derivatives, sulfates and nitrates, contribute to visibility degradation and
                            impact public health.

                            The first phase of the program began January 1,  1995, with 263 units at 110
                            electric power plants required to comply with emission limitations for SO2. An
                            additional 182 units have joined Phase I as substitution or compensating units.
                            The first phase of NOx reductions began January 1, 1996.  The second phase for
                            both SO2 and NOx begins in 2000 and covers  more than 700 additional plants,
                            which supply most of the fossil-fuel-fired electricity capacity in the United States.

                            The Acid Rain Program represents a dramatic departure from traditional command
                            and control regulatory methods that establish specific, static emission limitations.
                            Instead, the program introduces a trading system for SO2 that facilitates lowest-
                            cost emissions reductions  and a cap that ensures  the  maintenance of the
                            environmental gain. The program features tradeable SO2 emissions allowances,
                            where one allowance is a limited authorization to emit one ton of SO2.  Allowances
                            may be bought, sold or banked by utilities, brokers, or anyone else interested in
                            holding them.

                            The emissions cap and  market-based aspects of the Acid Rain Program also
                            serve to promote  pollution prevention,  such as energy efficiency or renewable
                            energy generation. Because the tradeable allowances have a market value, utilities
                            have the financial incentive to emit less SO2 in order to conserve allowances.

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        I
nnovation  for Cleaner  Air
\>
                               he third  Acid Rain Program Update focuses on the innovation and
                               technological advances fostered by the first national emissions trading
                               program.  This market-based system provides a strong incentive for
                        cleaner, more efficient technologies. The basic principle is simple: for every ton
                        of pollution reduced or avoided by compliance measures, an extra allowance is
                        saved.

                        Recent studies by Resources for the Future, the Electric Power Research Institute
                        (EPRI), and Argonne National  Laboratory have highlighted the efficiency and
                        innovation in pollution controls that have accompanied implementation of the
                        Acid Rain Program.  For example, scrubber costs have dropped dramatically in
                        the past six years and are now  40 percent or more below  1989 levels.  At the
                        same time, scrubber sulfur removal efficiencies have improved from 90-92 percent
                        in 1988 to 95 percent or more in retrofits to utility units affected by the first phase
                        of the Acid Rain Program.   There have also been innovations in blending of
                        high- and low-sulfur coals.  In the past, it was assumed that blending would cause
                        problems for utility boilers, but technical problems have been largely worked out
                        through experimentation prompted by Title IV compliance requirements.

                        Innovative responses to Title IV of the CAAA span several other areas as well.
                        The allowance market, for example, is increasingly resembling more established
                        commodities markets; both industry and EPA are developing sophisticated
                        computer tools to report and track emissions and allowances; and environmental
                        and other groups have used allowances in several unique transactions.

                        The results of the first year of implementation of the Acid Rain Program show
                        how all of this innovation is paying off. Recent statistics on emissions reductions
                        and allowance trading for 1995 are noted on pages 4-7. Emissions reductions
                        achieved in 1995 were 3.4 million tons greater than the target level for this first
                        year of the program. In addition,  nearly 30 million allowances were transferred
                        in private transactions.

                        In the coming year, EPA and others will continue to assess the operation and
                        results of Title IV of the CAAA.  Your suggestions and insights about the early
                        lessons learned from this innovative approach to environmental protection are
                        welcomed.
                                                               Director, Acid Rain Program

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s
ince  the  Last  Update.
                                  ermitting
                                  State and local authorities with approved acid rain and Title V regulations
                                  will be issuing Phase II acid rain permits. To date, 73 of the 79 state and
                           local authorities have EPA approved acid rain regulations.  Ninety-seven percent
                           of Phase II sources required to submit permit applications have done so.

                           Continuous Emission Monitoring
                           As of late March, the Continuous Emission Monitoring Systems (CEMS) at 898
                           Phase II units had been fully certified; 696 coal-fired units and 202 oil/gas fired
                           units, bringing the total number of Phase I and II units with certified CEMS to
                           1,154.

                           Emissions Data
                           In 1995, EPA reviewed  over 6,500 quarterly reports for Phase I and Phase II
                           units. Utilities are increasingly opting for electronic submittal of these required
                           quarterly reports, considerably increasing the efficiency of the reporting process.
                           In addition, EPA has completed a preliminary analysis of the Phase I emissions
                           and monitor performance data for 1995. See pages 4 and 5 for details.

                           Annual Reconciliation
                           January 30 of this  year  was the deadline  for 1995 allowance transactions and
                           1995 fourth quarter emissions reports. Annual Compliance Reports for all Phase
                           I units were due to EPA by March 1. Preliminary national statistics regarding
                           SO2 emissions and allowance deductions are shown on page 4.

                           Pollution Prevention
                           On December 8, 1995, EPA announced the largest award ever from the Acid
                           Rain Program's Conservation and  Renewable Energy  Reserve,  created to
                           encourage pollution prevention by electric utilities.  In this, the  fifth award to
                           date, 10  utilities were  awarded 8,635 allowances for  undertaking energy
                           conservation and renewable energy efforts, bringing the total number of  bonus
                           allowances awarded under the program to  12,816. See page 14 for details.

                           Nitrogen Oxides Reduction Program
                           In January 1996, a rule governing Phase II, Group 1 and Group 2 boilers was
                           proposed.  This  rule would implement the second stage of the NOx program by
                           establishing emission limitations for certain coal-fired units and revising emission
                           limitations for others.

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Opt-in Program
The  Opt-in Program has received its first four applications from combustion
sources seeking to enter the Acid Rain Program. The four applications received
to date are from the Aluminum Company of America (ALCOA), Dupont, Union
Camp, and the City of Dover.  All are being reviewed by EPA. If the applications
are accepted, these  sources will receive their own allowance allocations. By
undertaking emission reductions, opt-in units can generate extra allowances to
sell to utility units.

Enforcement
IBS Utilities of Cedar Rapids, Iowa, permanently surrendered 589 allowances
and paid a penalty of $25,630 under a consent order with the EPA in September
1995.  IBS allegedly failed to complete timely certification testing of continuous
emission monitors required under the Acid Rain Program.

Early Reduction Credits
In November 1995,  Union Electric was  awarded 314,248 allowances under the
early reduction credit program. This program was created by Congress to provide
an additional source of allowances to utilities that had  switched a substantial
portion of their generation to  non-fossil fuel fired facilities during 1980-1985.
The two utilities eligible for this program, Union Electric and Duke Power, may
receive allowances if they reduce the emissions at their fossil fuel units before
they are required to under Title IV.

Small Diesel Refiners
In July  1995, 28,215 allowances were awarded to 19  refiners under the small
diesel refinery program.  Allowances are awarded to small diesel refineries that
desulfurize fuel from October 1, 1993 through December  31,  1999.  Because
refiners do not need the allowances to comply with any provision of the Clean
Air Act, they may receive a financial benefit by selling them.

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E
missions  Data
                       S02 Emissions
             445 Phase I  Affected Utility Units
                             10.7
 Annual SO2
  Emissions
 (Million Tons)
                           995 marked the first compliance year for Phase I of the Acid Rain
                           Program.  Chart 1 shows that in 1995 emissions declined sharply at the
                                                             445 Phase I affected electric
                                                             utility units.   Ninety-five
                                                             percent of these emissions
                                                             reductions came from the 263
                                                             original Phase I units listed in
                                                             the   Clean    Air     Act
                                                             Amendments.  Emissions at
                                                             these large, mostly  coal-
                                                             burning facilities were  nearly
                                                             5 million tons  below  1980
                                                             levels.   This represents  a
                                                             decline in emissions at these
                                                             units of more than 50 percent
                                                             since 1980.
                                       10.0
                   1980
                             1985
                                       1990
                                                 1995
                                                                    The additional 1995 reductions
                                                                    came from 182 substitution and
                          compensating units.  These are Phase II units that became affected by Phase I
                          through special provisions of a compliance plan for one or more of the original
                          263 Phase I units.

                          Chart 2 compares the total 1995 emissions reductions at the 445 Phase I affected
                          units and the total number of 1995 allowances. Phase I allowances are broken
                          into three categories: (1) the annual allocation for the original 263 Phase I units
                          plus additional allowances earned by those units under the "Phase I extension"
                          early scrubbing provision, (2) allowances at substitution and compensating units,
                                        1995 Emissions and  Allowances
                                     Emissions were 3.4 million tons below allowable levels in 1995
                                  Annual S02
                                 Emissions and
                                  Allowances
                                  (in Millions)
                                               10 n
                                                       8.7
                                                    Allowances
                                                       1995
                                                              5.3
                                                               i Other
                                                               I Substitution and Compensating Units
                                                               I Original 263 Phase I Units
                                                            Emissions
                                                             1995

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and (3) other allowances earned from  special allowance  reserves such as the
auction and the Conservation and Renewable Energy Reserve. As Chart 2 shows,
emissions were 3.4 million tons below the allowable level in 1995, which represents
extra emissions reductions of nearly 40 percent.

The EPA has also compiled data on emissions rates achieved by boilers involved
in the first stage of the NOx reduction program. Of the 33 boilers identified by
                                            EPA and  the Utility  Air
                                            Regulatory Group  (UARG) as
                                            having installed simple low NO
       Performance of  Low Nox Burners
 Emissions rates achieved by installing low Nox burners are well below
	levels needed for compliance.	
                • Phase I Required
                 Emission Rate
                • Average Emission Rate
                 of Low Nox Burner
       Tangentially
       Fired Boilers
                                            burners, all  submitted  data
                                            showing that they met the Phase
                                            I emission standard of 0.50 Ibs/
                                            mmBtu  for dry bottom wall-
                                            fired boilers  and 0.45  Ibs/
                                            mmBtu  for tangentially fired
                                            boilers (see Chart 3).

                                            In addition to  analysis of the
                                            emissions data, EPA has tracked
                                            statistics on monitor perfor-
                                            mance,  validating the high
                                            accuracy  and reliability  of
monitors that are used to collect the emissions data. Over 93 percent of all Phase
I and Phase II monitors achieved relative accuracies of less than 7.5 percent, well
below the required 10 percent standard.  Furthermore, after the first two years of
operation, over 95 percent of the monitors at Phase I units have remained functional
90 percent of the time.

Finally, review and analysis of utility emissions data was greatly facilitated over
the past six months as  more and more utilities opted to submit data by direct
electronic transfer.  In the first quarter of 1995, a few did so as part of a pilot
program; in the second quarter, roughly 10 percent of all submissions were in
electronic form;  by the third quarter, 25  percent  of  the  data was  reported
electronically; and by fourth quarter 1995, nearly 40 percent of emissions data
arrived at the EPA in this fashion.

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D
evelopments  in  Allowance  Trading
        Allowance  Market Transactions
 Private
Transfers 2oo
                  t/3M4  11/31/M  J/J1/H
                       he allowance market is alive and well. Transactions have increased steadily
                       since 1994, and participants are developing innovative ways to structure
                                                   allowance deals.  While EPA does not
                                                   track the trading of allowances, the
                                                   Agency does track in its Allowance
                                                   Tracking System (ATS) the transfer of
                                                   ownership of allowances that will be
                                                   used for compliance. By observing
                                                   these allowance transfers, one can
                                                   draw some conclusions regarding the
                                                   level of trading activity (see Chart 4).

                                                   ATS transfers began in March of 1994.
                                                   As of March 31, 1996, ATS had
                                                   recorded over 2,000  allowance
                                                   transactions involving the transfer of
                                                   over 40 million allowances (see Chart
                                                   5). Of those 40 million allowances,
                                                   nearly 30 million were transferred by
                       private parties. (The remainder were transfers from EPA to private parties
                       under various provisions of the Act.) Private transfers included trades
                       between companies, shifts of allowances within utility companies, and
                       reallocation of allowances between multiple owners of the  same utility
                       units.  All in all, nearly 90 percent of Phase I affected units have participated
                       in some sort of private allowance transfer.
                                      MO/95  12/31/15  1/31/9C
                         Quarter Ending
                                              Allowances Transferred
                                  Nearly 30 million allowances have been transferred in private transactions.
                                             3/94  6/94  9/94  12/94  3/95  6/95  9/95  12/95  3/96

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                            As of December 31, 1995, EPA estimates that electric utilities had acquired over
                            4.3 million allowances from brokers, fuel companies, and other utilities  (see
                            Chart 6).  An additional 0.5 million allowances were transferred between units
                                                                  within the same utility company.
                 Allowances Acquired by
           Utility Unit Accounts 3/94 -12/95
Utilities have acquired over 4.3 million allowances from other utilities, brokers, and
fuel companies, according to the ATS. An additional 0.5 million have been trans-
      ferred between plants or units within the same operating company.
                         Intra Utility
                          10.6%
        Fuel Co. to Utility
Broker to Utility   1-1%
   10.6%
                  4,813,056 Allowances
Allowance prices have  generally
dropped, according to two different
price indexes developed by allowance
brokerage companies (see  Chart 7).
This trend was also apparent in the
recent allowance auction run by the
Chicago Board of Trade,  where the
clearing price in the spot auction was
$66.05.  The reported market price
rose  slightly in April,  however,
according to both price indexes.

Some market observers believe low
allowance prices are due primarily to
larger  than expected  emission
reductions, which have increased the
supply of allowances and depressed
prices. A key factor in the sharp drop
in emissions levels and allowance
prices may be the availability of low-
sulfur coal at lower than expected costs
(including  lower  than expected rail
transportation costs).
                                                   Allowance Price Trends
                                      Allowance prices have dropped substantially since the Program's inception.
                                    Allowance  ieo
                                      Price in
                                      Dollars   140

                                               120 -

                                               100

                                                80
                                                60
                                                    9/94 11/94 1/95  3/95  5/95  7/95  9/95 11/95  1/96  3/96
                                                                      Month/Year

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Developments  in  Allowance  Trading  (cont.)
                          Increasingly sophisticated transactions are occurring in the allowance market,
                          such as allowance swaps, fuel bundling, futures, forward contracts, and options
                          trading.  Although EPA does not track prices or contract terms, conversations
                          with company officials have confirmed the existence of these transactions.

                          An example of an allowance swap, the exchange of allowances of different vintages
                          or years between two parties, was entered in the ATS  in October of 1995.
                          Allegheny Power transferred a total of 20,200 vintage 1996 and 1997 allowances
                          to Duke Power Company.  Duke  Power in return transferred 20,000 1995
                          allowances to Allegheny Power.  Assuming  no cash was exchanged, this swap
                          would demonstrate that the market valued 1995 allowances at a premium over
                          1996 and 1997 allowances (the premium here is represented by the extra 200
                          allowances received by Duke Power).

                          An example of fuel bundling, combining the sale of fuel with allowances, was
                          recorded in ATS in November of 1995.  Peabody Coal Sales Co. transferred
                          2,195 vintage 1995 allowances to Big Rivers Electric Company, presumably in
                          conjunction with the delivery of coal. Fuel  bundling is often done to help the
                          utility comply with the Clean Air Act by providing allowances to offset the burning
                          of higher sulfur coal.

                          According to allowance brokers, both forward contracts and options to buy also
                          occur in the allowance market. In a forward contract, a purchaser can contractually
                          agree to buy a number of allowances for delivery in the  future at an agreed upon
                          price.  In an option to buy transaction, a party can negotiate to buy the right to a
                          specific number of allowances over some time period.

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c
ompanies   Develop  Innovative   Software
                                anaging allowances and emissions is both an environmental and a business
                                endeavor. Several electric utilities and other companies have developed
                                software to help lower costs and improve efficiency as they track allowance
                          and emissions information. With these systems, utilities can check whether they
                          are meeting internal compliance goals well before the end of the year, when
                          emissions and allowances must be reconciled. This enables utilities to make
                          better informed and more efficient decisions on compliance and allowance purchase
                          strategies.  Following are brief descriptions of some of these software systems:
(SCREEN <
        Allowance Tracking Workstation
             Cumulative Emissions vs Plan
                     05/30/95
                                       Legend
                                       Actual Emissions

                                       Protected Emission*

                                       Budgeted Allowances

                                       Emissions Cap
     Tons
      ol
     SO2
                                              Allowance Tracking Workstation
                                              The Allowance Tracking Workstation was
                                              developed by Electric Software Products
                                              Company with the collaboration often electric
                                              utilities.  The ATW provides a means for
                                              utilities to track their allowance holdings and
                                              transaction activity across a plant or plants.
                                              Utilities use the software to track the history
                                              and status of allowances, account for the
                                              allowances internally and to the Federal Energy
                                              Regulatory Commission (FERC), and manage
                                              units that are co-owned with other companies.
                                              Allowances are compared to actual emissions
                                              and emission goals set by management.  The
                                              ATW also produces an EPA reconciliation
                                              report that compares the allowances recorded
                                              in the software to the EPA database.
 artti
 information
                  Allowance Management System
                  Motivated by the
                  need for a comput-
                  erized means of in-
                  ternal  allowance
                  tracking and ac-
                  counting, Ameri-
                  can Electric Power
                  Company (AEP)
                  developed a set of
                  computer applica-
                  tions  to handle
                  functions including
                  the  receipt and
                  storage of emis-
                  sions data, intelli-
                  gent management
                                                 Allowance Management System

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Innovative  Software  (cont.)
                          of the inventory of allowances, and automated accounting transactions.  The
                          system can compare emissions year-to-date with management goals and can man-
                          age the review and submittal of emissions reports to the EPA.  The software
                          provides for data quality control and for coordination of different internal data
                          systems and sources of information.
                    S0_ Easy
       file Qplions £ystem Help
                               r1
                         f^ajiggement Rflporjjs

                     Contracts
                ATS Account Table


            Transfer History
         Allowance
         DispersaJ
     Allowance
     Acquisition
S02 EASY
SO2 Easy, developed by Wisconsin Electric
Power Company and offered by Sargent &
Lundy, automates the inventory management
and accounting process for SO2 allowances.
SO2 Easy is configured to automatically read
SO2 emissions from the CEMS database and,
per FERC guidelines, expense the appropriate
number of allowances at the average
allowance  cost on a  monthly  basis.
Allowances are then retired with the EPA on
an annual basis  to complete the compliance
cycle. Wisconsin Electric is currently using
this system to report its allowance transactions
to the EPA.

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       PA Data Systems and Software Packages
Electronic storage, manipulation and analysis of data is crucial to the success of
the Acid Rain Program.  The EPA must track and review hourly emissions data
from over 2,000 electric utility units and must store and transfer billions of dollars
worth of emission allowances. Data must be conveyed promptly and accurately
to both the regulated community and the public.  Following is a summary of the
Acid Rain Program's data systems and software packages:

Allowance Tracking System (ATS):  Provides a  computerized database for all
allowances held under the Acid Rain Program. The system records all transactions
electronically and performs deductions from accounts for compliance purposes.

Emissions Tracking System (ETS):  Quality assures each electric utility unit's
emissions.   The system handles vast amounts of information and is the largest
data system ever used as an essential operating component of an environmental
program.  Over 6,500  quarterly  data files were received in 1995, containing
approximately 791 million pieces of data.

ETS-PC:  Aids utilities in the preparation, review, and submittal of quarterly
emissions reports.  This software allows utilities to review their data prior to
submission and then to send the data electronically to EPA's mainframe computer
via modem.

Annual Reconciliation  System (ARS):  Combines permitting, emissions and
allowance data to determine each unit's compliance status.

Certification Review Software (C-REV): Automatically records and reports the
results of a unit's continuous emission system certification test to the EPA.  The
software checks that the monitors are accurately and continuously recording
emissions.

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I
nnovation   in   Environmental   Advocacy:
                                 small but growing number of environmental, non-profit, and student
                                 organizations have purchased allowances with the goal of retiring them
                                 and reducing pollution. Retiring an allowance ensures the emission of
                          one less ton of pollution into the air in a given year, since the total number of
                          allowances is fixed under the acid rain emissions cap.
                          One of the most active organizations in the allowance retirement movement is the
                          National Healthy Air License Exchange (INHALE), a group created with the
                          mission of acquiring and retiring SO2 allowances, and eventually expanding into
                          other developing market-based programs. INHALE'S philosophy is similar to
                          that of the Nature Conservancy, which purchases undeveloped land to preserve
                          its natural character. Under its allowance retirement program, INHALE purchased
                          an allowance at the first auction in 1993.  According to Executive Director Daniel
                          Jaffe, the organization has raised about $100,000 in its three-year history, mostly
                          from individual  contributions. Contributions are solicited through the sale of
                          Clean Air Certificates, which document  the amount of pollution a given
                          contribution has  prevented.

                          In the 1995 auction, INHALE purchased 156 allowances. The purchase  of a
                          portion of these was made possible by the donation of over $3,000 raised by the
                          150 sixth grade students at Glens Falls Middle School in the Adirondack Mountains,
                          an area plagued by acid rain.  This enabled INHALE to  retire 21 allowances
                          (over 40,000 pounds of SO2) in the name of the children. This year, Glens Falls
                          and teacher Rod Johnson raised $18,000 to lead an effort of 15 elementary,
                          middle, and high school groups submitting bids in the 1996 auction.  Glens Falls
                          took home 292 allowances, and INHALE bought a total of 454 in their biggest
                          purchase to date.

                          Several other student groups are involved in the allowance market. The Maryland
                          Environmental Law Society (MELS) bought and retired an allowance in the 1994
                          auction, and became  the first student group to do so. Since then, several other
                          law schools have joined in the effort (see box on page 13).

                          Another organization that has raised funds  to retire allowances is the Working
                          Assets  Funding  Source.  This non-profit public-interest company regularly
                          contributes 1 percent of its revenues to public-service organizations and uses its
                          monthly bills to solicit charitable donations  from customers for various featured
                          causes. A summer 1993 campaign asked the 80,000 customers of its long distance
                          telephone service to add a small donation when paying their bills to support "our
                          goal to reduce SO2 emissions by 300 tons . . . and spark a movement to do much
                          more." The result was $55,000 in donations, which enabled the group to purchase
                          289 allowances.

                          Allowances have also been retired through charitable donations.  An agreement
                          between Arizona Public Service Company and Niagara  Mohawk Power
                          Corporation, for example, resulted in the donation of 25,000 allowances to the

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Allowance  Retirement

                             Environmental Defense Fund.  In another transaction,  Northeast Utilities of
                             Connecticut donated 10,000 allowances to The American Lung Association. The
                             Lung Association has since contacted other utilities through its local chapters in
                             an effort to receive further donations to reduce pollution.

                             Advocates of retiring SO2 allowances believe that allowance retirement achieves
                             several benefits.  The most obvious is a reduction of pollution resulting from the
                             availability of one less allowance to emit SO2.  Another by-product is the possibility
                             of eventually driving up the  price of allowances, thereby encouraging utility
                             purchase of pollution control equipment or energy efficiency for compliance. A
                             final impact is an increase of public participation and awareness  of clean air
                             issues in particular, and the environment in general.

                             Although some utility companies have donated allowances to non-profit groups,
                             others have expressed concern about allowance  retirement.  For example,  one
                             utility representative told National Public Radio in April 1995 that "if for whatever
                             reason sufficient  emission allowances were not available for us to continue to use
                             our coal plants as they're currently configured, then we  would have to invest in a
                             more expensive technology."  Other observers have noted that extensive funds
                             would be required to purchase and retire enough allowances to impact the allowance
                             market.

                             Regardless of whether retiring allowances  will have  a significant impact on
                             emissions and compliance costs,  some have  argued that there  is symbolic
                             importance to this new type  of environmental  advocacy.   Supporters  of this
                             approach suggest that the  option to  retire allowances democratizes pollution
                             abatement by empowering  individuals and non-governmental organizations to
                             take direct action to reduce pollution.
American Lung Association (ALA)

Environmental Defense Fund (EDF)

INHALE

Working Assets

Environmental Law Groups at
University of Maryland, Duke,
CUNY, Detroit, Hamline, New
England, University of Michigan,
Thomas M. Cooley, University of
Minnesota, Valparaiso and Catholic
University

Acid Rain Retirement Fund

NRDC

World Charitable Trust
                                                                10,000

                                                                25,000

                                                                 611

                                                                 289
                                                                 48
                                                                 16

                                                                 1

                                                                 1
Donation

Donation

Purchase

Purchase
Purchase
Purchase

Purchase

Purchase
                               •This list of holdings may not be all-inclusive. The two donations to ALA and EDF are not documented in
                               ATS.

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c
onservation and Renewable Energy Reserve
             onus Allowance Recipients to Date
        The following table lists the utilities that have been awarded allowances from the Conservation
        and Renewable Energy Reserve:
_. "JKff™ _? _ " ~ ~~S.
""" " *.-™""_p7 ~ ww -.i^^iffi
: . . ; Name of
\ ' . "--~ f^p&ff ~
City of Austin
New England Electric System
(Naragansett Electric, Massachusetts
Electric, Granite State Electric)
Portland General Electric
Puget Sound Power and Light
Florida Power and Light (ESI
Energy)
Centerior Energy (Cleveland Electric
Illuminating Company, Toledo
Edison)
Connecticut Light and Power
Dayton Power and Light
Minnesota Power
Niagara Mohawk
Wisconsin Public Power, Inc.
Sierra Pacific
PSI Energy
Otter Tail Power Company
Rochester Gas and Electric
New York State Electric and Gas
Orange and Rockland
Western Massachusetts Electric
United Illuminating
Cincinnati Gas and Electric
Long Island Lighting Company
Consolidated Edison
Ohio Edison
Southern California Edison
Total Allowances


97
589
783
2,210
263
6
173
4
71
894
3
1,496
41
132
7
142
46
30
47
11
535
1,854
131
3,251
12,816
" - - •' '

Commercial, residential, and municipal efficiency programs
Commercial, industrial, residential efficiency programs and a
landfill gas renewable energy project
Commercial, industrial, and residential efficiency programs
Commercial, industrial, and residential efficiency programs
Geothermal energy
Commercial efficiency programs
Commercial, industrial, and residential efficiency programs
Commercial and government efficiency programs
Commercial, industrial, and residential efficiency programs
Commercial, industrial, and residential efficiency programs
Commercial, industrial, and agricultural efficiency programs
Geothermal energy
Commercial, industrial, and residential efficiency programs
Commercial, industrial, residential, and agricultural
efficiency programs; biomass energy
Commercial, industrial, and residential efficiency programs
Commercial, industrial, and residential efficiency programs
Commercial, industrial, and residential efficiency programs
Commercial, industrial, and residential efficiency programs
Commercial, industrial, and residential efficiency programs
Commercial, industrial, and residential efficiency programs
Commercial, industrial, and residential efficiency programs
Commercial and residential efficiency programs
Commercial, industrial, and residential efficiency programs
Commercial, industrial, residential, and agricultural
efficiency programs


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N
ew  Acid  Rain   Publications

                                                                                m
                          •  Human Health Benefits from Sulfate Reductions Under Title IV of the
                              1990 Clean Air Act Amendments (December 1995) — This report finds that
                              by the year 2010, when the Acid Rain Program is fully implemented, the
                              estimated annual health benefits from sulfate reductions will be $12 to $40
                              billion or more, dwarfing the cost of the program.

                          •  Acid Rain Program Emissions Scorecard 1994, EPA 430/R-95-012,
                              (December 1995) — This report examines SO2, NOx, Heat Input and CO2
                              emissions trends for the original 263 Phase I units.

                          •  Acid Deposition Standard Feasibility Study Report to Congress, EPA 430/
                              R-95-OOla, (October 1995) — This study concludes that SO2 emissions
                              reductions will benefit sensitive surface waters, particularly in the eastern
                              U.S., and that the SO2 trading program, which is expected to reduce costs of
                              control by 50 percent, will not have detrimental environmental effects. The
                              study also finds that NOx emissions may play a larger role than was originally
                              believed in the acidification of sensitive lakes and streams.

                          •  Annual Reconciliation Fact Sheet, EPA 430/F-95-118,  (September
                              1995) — This fact sheet focuses on the process of Annual Reconciliation of
                              emissions and allowance holdings for the first year of the Acid Rain Program
                              (1995).

                          •  Nitrogen Oxides Emission Reduction Program Proposed Rule for Phase II,
                              Group 1 and Group 2 Boilers  (January 1996) — This  proposal would
                              implement the second stage of the NOx Reduction Program by establishing
                              NOx emission limitations for certain coal-fired utility units and by revising
                              NO emission limitations for others.
                          •   Conservation Verification Protocols, Version 2.0, EPA 430/B-95-012, (July
                              1995) — This document offers a method that utilities may use to verify energy
                              efficiency savings under the conservation incentives of the Acid Rain Program.

                          For copies  of these and other Acid Rain Program documents,  please call the
                          Hotline at 202-233-9620.

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