benefits of
implementing the cleaner
and greener principles
The new regulatory approach to pollution reduction programs (one that follows the
Cleaner and Greenersm Principles):
1) Reduces the cost of emission reduction
Implementing the new approach increases the number of available emission reduction
options. Many of the options that are not included in the traditional approach for
reducing emissions, such as energy efficiency measures, can be done at very low cost.
2) Reduces emissions of other pollutants
Since energy efficiency and renewable energy reduces
the emissions caused by fossil fuel combustion and fossil fueled
electric generation, the new approach will also reduce many other
pollutants including sulfur dioxide, particulates, mercury,
and greenhouse gases. This also reduces the overall cost of achieving emission reduction
goals.
3) Increases electric system reliability by reducing the demand for
electricity
4) Uses emission allowances to create economic incentives for environmental
improvement
5) Credits early action
Once a cap on a pollutant is set, emission allowances are created. The new approach
uses allowances from under the cap on future allowances to reward early emission
reductions from projects implemented 1990 or later. Giving credit for early action does
not create any additional emission allowances.
6) Makes emission reduction reporting easy
The new approach to emission reduction regulation creates "one-stop
reporting" for all emission reductions for multiple pollutants. This allows
organizations to report their project once in one place and receive credit for all the
emission reductions delivered by their project.
7)
Make polluters recognize their emissions as a cost to
their organization
Giving polluters fewer allowances means that in order for polluters to have as many
allowances as they would have received under the traditional approach, they will need to
buy allowances in the marketplace. The cost of acquiring enough allowances to cover the
polluter’s ongoing emissions becomes an expense. This expense creates an incentive
for business managers to focus on the economic consequences of continuing to pollute at
any given level.
8) Rewards emission reductions delivered by all energy efficiency and
renewable energy projects
The new approach rewards businesses, organizations, and individuals that are
non-emitters for the reductions in emissions caused by their increases in energy
efficiency and use of renewable energy. It puts the owners and implementers of these
positive actions at the head of the line for rewards of emission allowances.
9) Compounds the benefits through the stream of pollutants that will soon face
tighter regulation
In the United States, nitrogen oxide
(NOx) is the first pollutant in line to face
tighter regulations, with emission reduction plans finalized by spring of 2000 and
emission reductions starting in 2003 in 22 eastern states. Fine particulate matter (PM2.5)
is next, with plans to start reductions by 2007. States must submit their plans to reduce
haze beginning in 2004. Mercury emission reductions are likely to be required in the early
2000's. Carbon dioxide (CO2) reductions are targeted to start in 2008 by the
Kyoto Protocol. After that, future reduction requirements are not clearly defined.
However, it is clear that the present trend of tightening environmental regulations will
continue as we continue to increase our understanding of the negative health and
environmental effects of pollution.
The committed pollution reduction requirements in the United States for
NOx, PM2.5,
and haze provide the opportunity to establish an integrated approach to implementing these
and future emission reductions. This integration can be achieved by treating multiple
pollutants in a consistent way, and by including rewards for the emission reductions
delivered by energy efficiency and renewable energy in the NOx, PM2.5, and haze
reduction plans developed for your state.
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