Energy, Product, and Ecomonic Implications of Environmental Compliance Options- Lessons Learned from a Southern California Case Study

Abstract

Industrial plants that are faced with regulated emissions constraints may be able to choose from a complex array of compliance options. Technology options may include a number of pollution control alternatives-retrofits with more efficient equipment, fuel-switching and/or process change to electrotechnologies, or advanced gas-fueled technologies. In some cases, a plant may be able to purchase emission allowances in lieu of changing equipment or adding controls, as would be the case in Southern California with the existing RECLAIM regulations. In such cases, emission allowances could also be sold by plants that achieve emission reductions, offsetting the costs of their technology investments. This paper explores an exhaustive list of compliance options for the manufacturing sector (SICs 20-39). We describe how to collect data and compare options in terms of costs, commercial availability, impacts on energy use, emissions, plant throughput or productivity, product quality control, and other characteristics relevant to selecting an option to implement. We discuss an array of coping strategies to achieve environmental compliance. This work is part of an ongoing project to develop a competitive technology database and technology competition model, both of which document existing technologies and their corresponding emission discharges. The database also maps the technology applications by two-digit SIC code and the applicable environmental regulations that impact that industry segment. This paper outlines the overall results of the first phase of the project, highlighting compliance strategies and technology options of approximately 40 four-digit SIC codes across a total of 11 two-digit SIC codes. This work will be completed in early 1995, in preparation for a broadened scope to the entire industrial sector.