Renewable Energy and Clean Air Compliance: Green Convergence

By Knutson, Kent Siguart | Management Quarterly, Summer 2005 | Go to article overview

Renewable Energy and Clean Air Compliance: Green Convergence


Knutson, Kent Siguart, Management Quarterly


The electric utility industry has recently witnessed an extraordinary amount of regulatory activity focused on renewed clean air initiatives and new generating technology. "Green convergence", a term recently applied to a combination of state and federal regulatory events, has utility industry executives more closely scrutinizing their generation investment decisions and power supply alternatives.

Electric generation and distribution companies alike currently face the long term impact of compliance with the recently enacted EPA Clean Air Interstate Rules (CAIR) and existing mandates to meet state renewable portfolio standards (RPS).

The convergence of these two similar but independent sets of regulations and mandates has utilities in affected states scrambling to develop new strategies to meet both air quality and renewable energy standards simultaneously. The complexity of each set of standards and the difficulty in monitoring results may well lead policy makers toward a national policy addressing not only emissions but renewable energy as well. This article takes a broad look at some of the federal clean air compliance requirements, the nature of state renewable portfolio standards, and some of the investment initiatives planned or underway by electric utilities.

The investment in emission controls necessary to meet federal CAIR standards have been estimated by a number of industry observers at more than $50 billion between now and 2020. In addition to those investments in clean air technology required of generators, a recent study by Global Energy Decisions, "Renewable Energy: The Bottom Line", projects that the investment necessary to meet state renewable portfolio standards (RPS) by 2020 will reach $53.4 billion--$17.6 billion alone in those states also affected by the new EPA CAIR rules by 2015. When fully implemented, Global Energy Decisions forecasts both RPS and CAIR will require more than $100 billion in investment by utilities over a 15-year window.

At the same time that funds are dedicated to emissions controls, companies are investing heavily in renewable energy. Wind development is at an all time high. These renewable energy project initiatives are driven in part by yet a third element in "green convergence", the federal production tax credit (PTC). This tax credit awards generators 1.8 cents/kWh for electricity generated by qualifying renewable energy sources that is sold to end users or the market.

IMPORTANT REGULATORY TERMS

Clean Air Interstate Rules (CAIR)

Promulgated Adopted by the Environmental Protection Agency in early 2005, these regulations impose limitations on S[O.sub.2] and N[O.sub.x] emissions produced by generators of electric power in 28 eastern states.

Production Tax Credit (PTC)

This federal initiative, set to expire in December 2005, provides generators with a tax credit of 1.8 cents for each kWh generated by renewable energy sources. The credit was developed to spur the production and sale of electricity generated by wind, solar, geothermal and other qualifying renewable energy projects.

Renewable Portfolio Standards (RPS)

Adopted on a state-by-state basis, these standards mandate that distributors of electricity meet a specific percentage of their load with power generated from renewable energy sources. The standards vary considerably in incentives and compliance levels.

The PTC is currently set to expire in December of this year and has spurred significant investment in renewable technologies. Wind capacity alone is forecast to more than quadruple during the next five years. In addition, according to Global Energy Decision's NewEntrant project tracking system, there are more than 37 GW of new coal projects planned to be operational before 2010--more than 15 GW are clean burning coal gasification and fluidized bed technologies.

Adding to the myriad of complex compliance decisions facing utility executives, the prices for S[O. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • A full archive of books and articles related to this one
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Renewable Energy and Clean Air Compliance: Green Convergence
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.