&EPA
               J States          Air and
             i_i.vironmental Protection     Radiation
             Agency      	(6204J)
                            EPA 430-N-95-012
                            July 1995
        Rain  Program
Update No. 2
             Partnership for Cleaner Air
              Photo courtesy of the Chicago Board of Trade

-------

-------
The Acid Rain Program: Partnership for Environmental Protection
Welcome to the second issue of EPA's Acid Rain Program Update. This issue focuses on
the partnership between the public and private sectors in environmental protection. We
maintain that an ongoing dialogue between EPA, industry, and other stakeholders is
essential to the success of a market-based program.

We began this dialogue immediately following the enactment of the 1990 Clean Air Act
Amendments (the Act) with the institution of the Acid Rain Advisory Committee (ARAC).
ARAC consisted of 44 individuals representing a variety of different organizations and
interests, including utilities, coal and gas interests, state air agencies and public utility
commissions, environmental organizations, and academia.
Members of ARAC provided insight into the realities and problems faced by our
stakeholders as we considered various regulatory options for implementing
Title IV.

In order to further enhance our understanding of industry's needs, as well as to
provide a forum to explain our program, Acid Rain Program staff have partici-
pated in literally hundreds of meetings, training sessions, industry conferences,
and trade association workshops.
"An ongoing dia-
logue between EPA,
industry, and other
stakeholders is
essential to the
success of a market-
based program."
When disagreements with industry or environmental organizations have led to litigation,
we have first sought to settle issues out-of-court. In response to litigation on the permitting
and monitoring rules, we met with both industry and environmental organizations and
successfully settled the issues at stake. In response to an adverse court order decision on
our NOX rule, we achieved consensus with the litigating parties before reinstituting the
rule. Our goal has been to improve the rules, avoid protracted litigation and achieve the
environmental protection intended by the law.


A Unique Relationship with the Private Sector

Our reliance on dialogue with industry and other stakeholders is only the beginning. In this
issue of the Update, we explore several specific areas in which EPA and the private sector
are working together in new ways. We also present up-to-date market and environmen-
tal indicators that reflect the progress of the Acid Rain Program.

First, we describe how the Acid Rain Program has enlisted the private sector to take the
lead on program activities for which it is better suited. For example, in the third year of an
innovative arrangement, the Chicago Board of Trade has administered the EPA allow-
ance auctions. These auctions, which have provided valuable price information for the
allowance market, have been conducted by the Board of Trade at no cost to the Fed-
eral Government.

The second article discusses the inventive Opt-in provisions of the Acid Rain Program. To
lower costs, the Acid Rain Opt-in Program allows industrial sources of SO2 emissions to join
the program voluntarily. Sources that find it profitable to "opt in" can reduce their emis-
sions and sell their extra allowances.

Our third article focuses on Kenetech Wind Power, a renewable energy company that
plans to participate in the Conservation and Renewable Energy Reserve Program (CRER).
This voluntary program allows EPA and the private sector to join in promoting the pollution
prevention benefits of energy efficiency measures and renewable energy technologies.
ACID\
p n o s H
                                                                               fRAIN

-------

-------
Since the Last Update...
Permitting... The utility industry has met all permitting deadlines under Phase I of the Acid
Rain Program. EPA has reviewed all Phase I compliance plans and issued all Phase I
permits for SO2 and expects to complete approval of all Phase I NOX compliance plans
by the end of July, consistent with the new NOX rule,

Continuous Emissions Monitoring... Utilities have installed and tested continuous
emissions monitoring systems (CEMS) at all Phase I units, and EPA has certified all of them.
Over the next several months EPA will be certifying CEMS at more than 2000 Phase II units.

Emissions Data... One year ago, Phase I units began reporting quarterly emissions data,
and now we have the first full year of data from these units (see page 16). To process the
data, the Agency has been developing the Emissions Tracking System, which will be one
of the largest program data systems ever assembled by EPA. An initial version is currently
operational, with substantial modifications taking place this year to handle the sixfold
increase in data arriving from Phase II units.

The Allowance Market... Allowance trading began in 1992, and EPA's Allowance
Tracking System became operational in March 1994. Through March 1995,  over nineteen
million allowances have been privately transferred by utilities, brokers, fuel suppliers, and
environmental groups. Furthermore, all three EPA allowance auctions have been sold out
with bids and offers converging around a stable market price — signalling the develop-
ment of a healthy allowance market. (For a description of this and other trends in the
allowance market, see the Market Indicators section on pages 9-10.)

Pollution Prevention... Through the Conservation and Renewable Energy Reserve
Program, EPA promotes pollution prevention. Thus far, EPA has awarded 4,181 bonus SO2
allowances from the reserve to 24 different electric utilities for energy efficiency and
renewable energy efforts.

Litigation... We have been sued on various aspects of the rules, but have responded
quickly and deliberately to resolve differences and move forward.

We settled three law suits directed at problems with Part 72, the acid rain permitting rules.
We signed the first settlement, concerning the allocation of allowances to substitution
and compensating units, in May 1994; the second, regarding the types of units that can
qualify as substitution units, in August 1994; and the third, related to allowances surren-
dered due to reduced utilization, in January 1995. We also  issued final revised rules imple-
menting the settlements; the first two in November 1994 and the third in April 1995.

In response to litigation on the CEM rule, we settled virtually all issues and published the
revised rule on May 17,1995. While the revised CEM rule settled many minor implementa-
tion issues, we were also able to reach an agreement with  industry and environmentalists
on revisions to the parametric procedures for monitoring NOX at oil and gas-fired utility
units. Earlier, we reached an agreement with the parties to move back the deadline for
certifying NOX and CO2 monitors at such units.

On November 29,1994, the NOX rule was vacated by the District of Columbia Circuit
Court of Appeals.  We reached a settlement with the major stakeholders and re-promul-
gated the NOX rule on April 13,  1995.
                                                                               RAIN

-------

"EPA's goal is to 'lot the
market do the work* and
achieve emissions
redactions at the lowest
possible costto society/'
 "EPA determined thai the
 "private sector was more
 suited in both
 knowledge and "-
 experience to meet the
 needs of an emerging
 market"
Letting the Market Do the Work

The allowance trading program epitomizes the partnership be-
tween the private and public sectors. EPA set the basic rules for
the market and delegated important aspects of its administration
to private industry.  EPA's goal is to "let the market do the work" to
achieve emissions reductions at the lowest possible cost to soci-
ety.

EPA determined that the private sector was more suited in both
knowledge and experience to meet the needs of an emerging
market. Thus, central market organizational functions, such as the
establishment of broker listings, the posting of current allowance
prices, and matching buyers with sellers, have been left to the
private sector.  Brokerage firms, private exchanges and bulletin
boards, as well as newsletters focusing on the allowance market
have emerged to meet these needs.

EPA's role is limited to operating the Allowance Tracking System
(ATS). The ATS provides an efficient automated means of monitor-
ing compliance with the program. The ATS also provides the
market with a record of who is holding allowances, the date of
allowance transfers, and the specific allowances transferred. The
ATS does not record the price or other terms associated with
allowance trades, as again, such information is better collected
and communicated by the private sector.

Because the availability of allowances is crucial for the economic
efficiency of the Acid Rain Program's emissions limitations, EPA
provides for annual allowance Auctions and Direct Sales. The
administration of the Auctions and Direct Sales were delegated to
the Chicago Board of Trade (CBOT).  CBOT was chosen because
of its demonstrated ability in handling and processing financial
instruments and using transactional information systems.

This March, EPA granted an indefinite extension to CBOT's adminis-
tration  of the Auctions and Direct Sales, further strengthening this
unique public-private partnership.
      ACID-RAIN
      PROGRAM

-------
    Brian McLean congratulates Brianna Cowan - a successful bidder in the
    1995 allowance auctions. Brianna's 6th grade class bought 21 SO2 allow-
    ances to retire. Left to right, Daniel Jaffe, executive director of INHALE; David
    Webster, president of INHALE; teacher Rod Johnson; Briana; Brian McLean,
    director of EPA's Acid Rain Division; and Michael Walsh, senior economist at
    the Chicago Board of Trade.
On March 27, 1995, CBOT hosted the third annual EPA Auctions and Direct Sales.
Over 50,000 year 1995 allowances were sold; over 25,000 allowances for use
beginning in 2001 were sold; and over 100,000 year 2002 allowances were sold.

The 1995 allowance auction prices centered around the open market price tor
SO2 allowances, indicating a maturing allowance market.  Participation in 1995's
auctions by non-utilities increased substantially. Over 51% of successful bidders
were non-utilities (environmental groups, brokers, coal companies, etc.) vs. less
than 5% for 1993's spot auction. Non-utility purchases accounted for 12,730 allow-
ances or 7.2% of allowances sold in the 1995 auctions.
                                                                      ACID-RAIN
                                                                      PROGRAM

-------
"With the Opt-in Program,
companies can voluntarily
enter the Acid Rain Program,
create extra allowances
through emissions'
reductions, and generate
revenue through 'the sate of
allowances"  •»   '    "!
Reducing the Cost of Acid Rain Control

"Hello?  Is this the EPA? Great. I'd like to get regulated, even
though it's not required.  Yes, that's right, get a permit, install con-
tinuous emissions monitors... the whole works."

Sound unlikely? Well, such a phone call might have been un-
heard of before market-based environmental programs.  But now,
with the Opt-in Program, companies can voluntarily enter the
Acid Rain Program, create extra allowances through emissions
reductions, and generate revenue through the sale of allow-
ances. Opting in will be profitable if the revenue from selling
allowances exceeds the combined cost of the emissions reduc-
tion and the costs of participating in the Opt-in Program.

On April 4, EPA issued its final opt-in regulation for combustion
sources that will provide non-affected units with the opportunity to
participate in the SO2 allowance trading market. Opt-in sources
must comply with the same or similar provisions for allowance
trading, permitting, excess emissions, monitoring, end-of-year
compliance, and enforcement as utility units in the mandatory
program. Most basic to the program is the requirement that each
year the opt-in source hold enough allowances to cover its an-
nual SO2 emissions.

Right now, EPA will allow "combustion sources" to enter the pro-
gram. "Process sources" must wait until another regulation is
developed.  Combustion sources are boilers, turbines or internal
combustion engines and are technologically very similar to utility
units.  Examples of combustion sources include industrial boilers
producing steam and/or electricity or small utility units not in-
cluded in the mandatory program.  Process sources are all other
types of sources that emit SO2 through some manufacturing
process, such as, metal smelting and natural gas production. EPA
has waited to develop rules for these sources because of the
complexity of these industries and the variability found from one
type of source to another. Combustion sources, in contrast, are
similar to one another and to the utility units regulated under the
mandatory program.
      ACID-RAIN
      PROGRAM

-------
                                Although opt-in sources
                                will receive allowances
                                over and above the
                                annual 8.95 million ton
                                cap set for affected utility
                                units, these allowances
                                are allocated for emissions
                                from existing sources and
                                do not authorize new
                                emissions. Through trad-
                                ing, emissions will shift
                                between the utility and
                                industrial sectors,  but total
                                emissions will not increase.

                                Opt-in allowances are
similar to allowances allocated to utility units, but not identical.
The most important distinction is the restriction under which an
opt-in source may not transfer or bank allowances that result
from a reduction in its utilization.

Sources with relatively low costs of reduction might investigate
the Opt-in Program as a way of offsetting the costs of emissions
reductions or even generating revenue. Although sources
become regulated, they are able to withdraw from the pro-
gram as long as they reconcile their emissions for the years
that they were in the program and give back all allowances
for future years.

The Opt-in Program  further reduces the cost of acid rain con-
trol by providing an  additional source of allowances to electric
utilities.

EPA operators are standing by.

For further information on the Opt-in Program, contact Adam
Klinger at 202-233-9122.
'The Opt-in Program
further reduces the cost
of acid rain controlby
providing an additional
source of allowances to
electric utilities."

-------
                                                                Market Indicators
                      Cumulative Allowance Transfer Activity
                                   3/14/94-3/31/95
                      30,000,000 -,
                           3-14-94
                                                10-94
                                                          1-95
                                                                    4-95
                    Beginning in the last quarter of 1994, allowance transfer

                    activity has increased significantly.

                  * Most of these transfers involved movement of allowances from EPA accounts to market
                  accounts (e.g. auctions, phase 1 extension allowances, substitution allowances, etc.)

                  ** These transfers were submitted by authorized account representatives for market accounts,
                  (EPA does not attempt to detef mine what constitutes anackial trade where money Is
                  exchanged). Over 11 million allowances transfered declassified by EPA as reailocations (e.g. -
                  movement from a unft account to a general account) and some may become infra-utility
                  transfers in the future (see graph below).
                        Private Allowance Transfer Activity Detail
                                      3/14/94-3/31/95
     800,000 •

  O
                    0)  400,000 •
                   .0
                    E
                    3  200,000'
                   z
                              r       f
                           .
-------
        Allowance Price ($)
              1600 -i
              1400-


              1200-


              1000


              800


              600


              400-


              200
                               Allowance Prices
 Allowance prices have dropped dramatically from earlier estimates.

                 "Source: U.S. General Accounting Office^
          Spot Auctions:  Distribution of Bid Prices for 1995 Allowances
                         (Weighted by Bid Quantities)
70% •
60% •
s
to 50% -
"5
~C 40% -
O
O 30% •
a.
20% -
1 0 % -


1993 Auction







ill.


1 994 Auction







I.I
O 0 O




|
D 0 0


1995 Auction







O 0 O











                                                   ^
                                                "  +•  ^  ^  ^
                            price bid per allowance

Bidding has increasingly centered around the open-market price with each suc-
cessive auction.
                                                                   ACID*
                                                                          'RAIN
                                                                   PROGRAM
                                     10

-------
         Conservation and Renewable Energy Reserve Program
ACID-RAIN
PROGRAM
                    The Clean Energy Solution
                    Where the Environment and Market Meet

                    The Conservation and Renewable Energy Reserve encour-
                    ages utilities to jump-start pollution prevention efforts by
                    reducing emissions before program deadlines.  The Reserve
                    is a pool of 300,000 allowances set aside to reward utilities for
                    energy efficiency and renewable energy measures.

                    Most of the allowances awarded from the Reserve thus far
                    have been for utility energy efficiency programs (see page
                    14). However, EPA expects to see a sharp increase in allow-
                    ance awards for renewable energy in the next several years
                    as a number of new projects come on line. In particular,
                    wind energy generation may grow dramatically over the
                    remainder of the decade.  Recent technological improve-
                    ments in wind energy have been substantial, and energy
                    costs have dipped below 5 cents/kwh for some projects.

                    Recently, we spoke with John Huffman, Project Develop-
                    ment Manager for Kenetech Windpower.  With an installed
                    capacity of 550 MW, Kenetech has over 5,000 turbines oper-
                    ating worldwide.
                           EPA's SO2 emissions trading program has put a
                           quantifiable value on avoiding emissions. Electric
                           utilities also can gain bonus allowances from the
                           Conservation and Renewable Energy Reserve. How
                    does this program help the wind industry?

                    Mr. Huffman:  Market-based trading programs, like the cur-
                    rent SO2 trading program, create real economic value for
                    utilities through reduced emissions. We are not talking about
                    intangible value here, but rather real dollars and cents.  And
                    in a competitive marketplace, this will only help the market
                    penetration of wind power. Trading makes it possible for
                    utilities to use wind power as an option for complying with
                    regulations like the Clean Air Act Amendments. Without the
                    allowance trading market, compliance would be limited to
                    the control devices that were prevalent during the days of
                    command-and-control regulation.
                                  11

-------
       To what extent has Kenetech marketed wind energy as
       a hedge against future environmental risks such as
       global climate change?
Mr. Huffman: Wind power provides two primary advantages to
utilities. First, wind provides a hedge against increasing fuel
costs, whether that fuel is gas or coal or whatever. There are
zero fuel costs with wind. As the industry goes through deregu-
lation and increases in fuel prices get transferred back from
consumers to the utilities, the utilities are going to view wind's
attributes with increasing value. Second, wind has zero air
emissions and zero water emissions.  If additional emission
reductions are required later in this decade, whether it is car-
bon dioxide (CO2) or another pollutant, then wind will also be a
strong hedge against the risk of future regulation.

       Wind energy is not without its environmental controver-
       sies. Bird deaths from collisions with wind turbines are a
       concern, and aesthetic questions have been raised
       over the placement of turbines in scenic areas.  What
are Kenetech and the wind industry doing to address these
concerns?

Mr. Huffman:  I think Kenetech and the wind industry have
learned a lot from our  early experiences. The  fundamental
lesson is to consider early on the location of migratory routes,
breeding grounds, and roosting areas. If several sites are being
considered in a particular region, all things being equal, you
are going to choose the site with the lowest probability of
creating conflicts with  bird populations. Then, once a site has
been selected, we do further wildlife and bird studies well in
advance of the construction to ensure everyone is satisfied,
including the State agencies, the US Fish and Wildlife Service,
local environmental groups, and most importantly ourselves.
The same thing goes for visual impacts.  We look closely at the
location of popular hiking trails as well as national and State
parks.
                                      12
                                                                 ACID-RAIN
                                                                 P B 0 G ft A M

-------
                         Competition appears to be the wave of the future in
                         the electric utility industry.  Will competition help or
                         hurt the wind industry?
                  Mr. Huffman: In our view, in a purely competitive market-
                  place, wind power will do exceptionally well. As markets
                  deregulate, customers will be making decisions based on
                  price and value. We believe there is a large segment of the
                  population that values clean power from resources such as
                  wind. If we can tap into that market, you will see Kenetech
                  and the wind industry grow dramatically. We are looking at
                  a number of direct marketing options. Portland General
                  Electric, for example, is initiating a program called  "Share
                  the Wind." The program allows customers to apply their
                  dollars toward the purchase of wind power.  Our view is that
                  if a direct marketing program is structured correctly, it will be
                  hugely successful.
                         How different will the wind industry look in another
                         ten years?
                  Mr. Huffman: First, you are going to see continued improve-
                  ment in the technology.  The recent introduction of the
                  variable speed turbine was a large step forward. The cost
                  reduction was dramatic. Second, in the last five years we
                  have made great strides in making wind energy an ac-
                  cepted generating
                  option with utility execu-
                  tives. Wind power is no
                  longer viewed as an
                  exotic, "California-only"
                  technology. Accep-
                  tance of the technology
                  is only going to increase.
                  Ten years from now,
                  when utilities are trying
                  to figure out where their
                  next kilowatt will be
                  coming from, there
                  won't be any novelty to
                  tapping into wind re-
                  sources.
ACID-RAIN
PROGRAM
                                   13

-------
Bonus Allowance Recipients
Name of Recipient
City of Austin
New England Electric System
(Naragansett Electric,
Massachusetts Electric,
Granite State Electric)
Portland General Electric
Pudget 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
Total Allowances
Number of
Allowances
Awarded
97
589
277
1,002
109
6
173
4
8
177
3
835
41
42
7
142
46
30
47
n
535
4,181
Initiative
Commercial, residential, and municipal effi-
ciency 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, agricultural efficiency
programs and purchase of geothermal energy
Purchase of geothermal energy
Commercial, industrial, and residential
efficiency programs
Purchase of 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

      For further information on the Conservation and Renewable Energy
      Reserve Program, contact Melanie Dean at 202-233-9189.
                                                                      ACID-RAIN
                                                                      p a o s n A u
                                          14

-------
                           Emissions Monitoring and Tracking
                  Unprecedented Results

                  As reported in the first issue of the Update, the Acid Rain Program
                  is seeing unprecedented levels of accuracy in the emissions
                  monitors installed at affected units,  Equally important the pro-
                  gram is seeing an exceptional  degree of compliance with emis-
                  sions reporting requirements. All of the 256 electric utility units
                  required to report a full year's worth of hourly SO2, NOX, and CO2
                  emissions data by January 1, 1995 have fulfilled this requirement.
                  (Seven of the original 263 Phase I units have retired since 1985 and
                  do not have to report emissions).

                  These results have been achieved despite the fact that prior to
                  the Acid Rain Program, many units had no monitors installed; in
                  most states continuous round-the-clock, 365-days-a-year hourly
                  emissions reporting was rare. The Acid Rain regulations require
                  unusually rigorous procedures to prevent monitoring outages and
                  to provide an environmental "gold standard" behind emissions
                  allowances.

                  The high level of compliance is a credit to industry whose commit-
                  ment and conscientious efforts have produced these results. It is
                  also due to several design and implementation features of the
                  Acid Rain Program:

                     •  Attractive economic incentives for compliance provided
                        by the allowance market;

                     •  Flexible range of permitting and compliance options
                        available to industry under the acid rain regulations; and

                     •  Good cooperation between EPA staff and industry on
                        monitoring and data system development.
ACID-RAIN
                                   15

-------
One example of the ongoing cooperation between EPA and
industry is a pilot project for electronic data submission. On
April 28, 1995, American Electric Power Company became the
first utility to submit their emissions data to EPA successfully via
modem.  Other utilities participating in this pilot project in-
cluded Georgia Power, Allegheny Power, and Grand Island
Power. EPA's goal is to increase the number of utilities that
submit their data electronically in future quarters.

Early indications are that the high level of cooperation be-
tween EPA and the regulated community is paying off in terms
of being able to document early emission reductions.  As
anticipated by the framers of Title IV, utilities appear to be
making early reductions in their SO2 emissions in anticipation of
using or selling allowances in later years when the per unit cost
of reducing emissions is likely to be higher.  These early reduc-
tions are evident in the first round of annual emission data
received by EPA.

Preliminary analysis indicates that nationwide, total  1994 SO2
emissions reported by utilities covered under Phase  I of the
Acid Rain Program were approximately 7.0 million tons, com-
pared to an estimated 9.3 million tons from the same units in
1985.  In other words, the 1994 SO2 emissions from just the 263
Phase I affected utility units dropped 25% from their 1985 level.
"Early indications are
that 1he high level of
cooperation between
EPA and the regulated ?
community is paying off
in terms of being able to
document early emission
reductions."
                         Emissions Have
                         Begun to Drop
                                            1994
                Based on the 263 Phase I (Table A) units.
                                                                   ACID-RAIN
                                                                   <• ft o a R A u
                                       16

-------
ACID-RAIN
PROGRAM
                    Profile: Pennsylvania Power & Light Co.

                    How one utility views its investment in Continuous Emis-
                    sions Monitoring Systems
                    Pennsylvania Power & Light Co, (PP&L) exemplifies the conscientious
                    effort industry has made to meet the Acid R&in Program's monitoring
                    requirements, At seven Phase>funrkf^^^-arKifk>wmonff'ofs  :
                    achieved average Relative Accuracies -of 5,1% and 6, i% respec-
                    tively, welt below'the required-10% standard for gas monitors and
                    15% for flow monitors. In 7994SO2 emissions at the seven-units to-
                    'taied 133,850 torts, 'down more than 24% from 1985 levels,

                    This Is what'PP&L has to sayi about its commitment to continuous
                    emission monitoring under the Acid Sain Program:

                    'PennsylvaniaPower & Light Go,, an electric utility that serves 1,2
                    mllon customers in 29 counties ot central and eastern Pennsylvania^
                    is committed to producing electricity in an environmentally respon-
                    sible manner. As part of the company's obligation to meet the acid
                    rain requirements of the Clean Air Act Amendments of 1990, PP&L
                    has spent $26 million to install Continuous Emissions Monitoring
                    Systems, or CEMS, at all of its coal and oil-burning power plants. The
                    CEMS have been; built on each of the 12 smokestacks at PP&L's five
                    fossil-fuel power plants..,"

                    "The monitors albw for the  continual measurement of opactfy - or
                    visible emissions - air emissions and flow through the stack. Although
                    PP&L has had emissions monitors on its fossil plants since the early
                    1970s to meet state requirements, the new CEMS provide more
                    accurate monitoring of sulfur dioxide - a contributor to acid rain -
                    and allow for the monitoring of nitrogen oxides emission, which
                    contribute to acid rain and ground-level ozone."

                    "Under the new Clean Air Act Amendments, utilities need to report
                    more sophisticated and accurate emissions records to the EPA. The
                    act ultimately mandates a nationwide reduction of sulfur dioxide
                    and nitrogen oxides.,."

                    "The new CEMS are a central part of PP&L's corporate strategy to
                    comply with the Clean Air Act Amendments' goals of reducing sulfur
                    dioxide and nitrogen oxide emissions from stationary sources. The
                    CEMS are another example of PP&L's commitment to  producing
                    electricity in harmony with the environment,"
                                      17

-------
New Acid Rain Publications
Conservation and Renewable Energy Reserve Program:

Conservation and Renewable Energy Reserve - Questions and Answers
EPA430/F/95/075

Conservation and Renewable Energy Reserve Update
EPA430/R/94/010

Allowance Trading and its Impact on Pollution Prevention Technologies
Fact Sheets on Wind Energy, Photovoltaics, Solar Thermal, Biomass, Geothermal, Demand-Side
Management, and Landfill Methane.
EPA430/K/94/010-18

Opt-In Program:

The Opt-In Program: Reducing the Cost of Acid Rain Control Through Voluntary Participation
EPA430/F/95/032

The Opt-In Program: Overview for Combustion Sources
EPA430/F/95/048

Continuous Emissions Monitoring Program:

Acid Rain Continuous Emissions Monitoring Policy Manual Update #5
March, 1995

An Operator's Guide to Eliminating Bias in CEM Systems
EPA430/R/94/016

International:

U.S.-Canada Air Quality Agreement Progress Report-1994
EPA430/R/94/013

Evaluation:

Acid Deposition Standard Feasibility Study - Draft For Public Comment
EPA430/R/95/001

Federal Register Notices:

Continuous Emission Monitoring
Direct Final Rule, Interim Final Rule
May 17,1995

Nitrogen Oxides Emission Reduction Program
April! 3, 1995

Acid Rain Program Permits
Direct Final Rules
April 11, 1995; November 22, 1994

Opting into the Acid Rain Program
(combustion sources)                                                       J\
April 4, 1995
                                                                   ACID\
'RAIN
                                       18

-------
                                   Acid Rain  Program Order Form
D

>.
.Q
c

I
a
•a
a
2
o
O

1
Check this box if you would like to be on the Acid Rain Program Mailing List.

        a

Area(s) of Interest:

        D Monitoring
        D NOx Program
        D Permits
        D Pollution Prevention
        D International
        n Allowance Tracking
       Please send the following document:
       Name:
       Company:

       Street:	
       City, State, Zip:
       Or call the Acid Rain Hotline
       at 202-233-9620
       ACID-RAIN
       PROGRAM
                                       19

-------
  Acid Rain Program
     Mailing List
US EPA 401 M Street SW
   Mail Code 6204J
Washington, DC 20460

-------