Energy efficiency as a compliance pathway for industry environmental regulation in the United States

Panel: 3. Matching policies and drivers: Policies and Directives to drive industrial efficiency

This is a peer-reviewed paper.

Author:
Nate Aden, World Resources Institute, USA

Abstract

Industry is the largest energy-using and greenhouse-gas-emitting sector in the U.S. in end-use terms. The Clean Air Act is the primary driver of federal laws governing industry emissions, though it has not, to date, been used directly for industrial greenhouse gas emissions. In 2012 the U.S. Environmental Protection Agency is expected to finalize boiler air toxic emissions standards that include an output-based efficiency compliance pathway. While the boiler standards are focused on reducing emissions of toxics including mercury, they also impact industry sector greenhouse gas emissions. Compliance assessment of these standards indicates that boiler efficiency improvements through installation of combined heat and power (CHP) technologies can reduce greenhouse emissions as much as fuel switching from coal to natural gas and more than utilization of end-of-pipe air toxic emission controls. Simultaneous installation of CHP with fuel switching to natural gas is the most beneficial boiler standard compliance pathway from a greenhouse gas emissions reduction perspective. The inclusion of output-based emissions standards in new Clean Air Act regulations can help the U.S. achieve its 17 percent greenhouse gas emissions reduction target by 2020.