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Report
Contents 2. Analysis Cases and Methodology 4. Fuel Market and Macroeconomic Impacts 5. Potential Impacts of New Source Review Actions 6. Comparisons With Other Studies Download Entire Report and by Chapters (PDF) Related Links |
Analysis
of Strategies for Reducing Multiple Emissions from Power Plants: PREFACE Over the next decade, power plant operators may face significant requirements to reduce emissions of sulfur dioxide (SO2), nitrogen oxides (NOx), carbon dioxide (CO2) and mercury (Hg). At present, neither the future reduction requirements nor the complete timetable is known for any of these airborne emissions, and compliance planning is difficult. Power plant operators are wary of making investments that could prove uneconomical if and when new regulations are enacted. An option that looks attractive to meet one set of SO2 and NOx standards may not be attractive if further reductions are required in a few years. Similarly, economical options for reducing SO2 and NOx may not be optimal if Hg and/or CO2 emissions must also be reduced later. Recently, some have proposed plans requiring coordinated multi-emission reductions. This analysis responds to a request from the Subcommittee on National Economic Growth, Natural Resources, and Regulatory Affairs of the U.S. House of Representatives Committee on Government Reform to examine the costs of such multi-emission reduction strategies (see Appendix J for the requesting letters). In its request the Subcommittee asked the Energy Information Administration (EIA) to “analyze the potential costs of various multi-pollutant strategies to reduce the air emissions from electric power plants.” The Subcommittee requested that EIA examine the impacts of cases (see Chapters 2 and 5 for descriptions of the cases) incorporating NOx, SO2, CO2, and Hg emission reduction requirements and renewable portfolio standard (RPS) requirements. In response to the Subcommittee’s request, EIA has prepared this report as the first of two volumes. This report addresses NOx, SO2, and CO2 emission reductions. The second volume will extend the analysis to Hg emission reductions and RPS requirements. The projections and quantitative analysis for this report were prepared using the National Energy Modeling System (NEMS), an energy-economy model of U.S. energy markets designed, developed, and maintained by EIA, which is used each year to provide projections for EIA’s Annual Energy Outlook and for other analyses and service reports. Chapter 1 of this report provides a brief introduction, Chapter 2 describes the analysis cases and methodology, Chapter 3 provides electricity market results, and Chapter 4 examines projections for coal, natural gas, and renewable fuels markets and for the U.S. macroeconomy. Chapter 5 examines the impacts of alternative assumptions about the possible outcomes of ongoing litigation related to new source reviews, and Chapter 6 compares the results of this analysis with those of other analyses. Within its Independent Expert Review Program, EIA arranged for leading experts in the fields of energy and economic analysis to review earlier versions of this analysis and provide comment. The reviewers provided comments on two draft versions of the report and discussed their comments in a joint meeting. All comments from the reviewers either have been incorporated or were thoroughly considered for incorporation. As is always the case when peer reviews are undertaken, not all the reviewers may be in agreement with all the methodology, inputs, and conclusions of the final report. The contents of the report are solely the responsibility of EIA. The assistance of the following reviewers in preparing the report is gratefully acknowledged:
The legislation that established EIA in 1977 vested the organization with an element of statutory independence. EIA does not take positions on policy questions. It is the responsibility of EIA to provide timely, high-quality information and to perform objective, credible analyses in support of the deliberations of both public and private decisionmakers. The information contained herein should be attributed to the Energy Information Administration and should not be construed as advocating or reflecting any policy position of the U.S. Department of Energy or any other organization. |
