March 15, 2004 | Volume 1, Issue 1

Policy Viewpoint: For Clean Skies

by Brian Stein

Consider

Clear Skies was reintroduced in the US House of Representatives (HR 999) and the US Senate (S. 485) as the Clear Skies Act of 2003 on February 27, 2003, and is currently under consideration. The emissions reductions from Clear Skies would help to alleviate our nation’s major air pollution-related health and environmental problems including fine particles, ozone, mercury, acid rain, nitrogen deposition, and visibility impairment. Specifically, Clear Skies will achieve the following reductions:¹

• Cut sulfur dioxide (SO2) emissions by 73 percent, from year 2000 emissions of 11 million tons to a cap of 4.5 million tons in 2010 and to a cap of 3 million tons in 2018.
• Cut emissions of nitrogen oxides (NOx) by 67 percent, from year 2000 emissions of 5 million tons to a cap of 2.1 million tons in 2008 and to a cap of 1.7 million tons in 2018.
• Cut mercury emissions by 69 percent – the first-ever national cap on mercury emissions. Emissions would be cut from 1999 emissions of 48 tons to a cap of 26 tons in 2010 and to a cap of 15 tons in 2018.

Solution

Clear Skies will provide both environmental and economic benefits over the current regulations.

Environmental Benefits

Clear Skies provides for protection of public health and the environment by improving air quality, and by decreasing exposure to harmful atmospheric pollutants. Under Clear Skies, each year, by 2020, Americans would experience approximately:²

• 14,100 fewer premature deaths;
• An alternative estimate projects 8,400 fewer premature deaths.
• 8,800 fewer cases of chronic bronchitis;
• 30,000 fewer hospitalizations/emergency room visits for cardiovascular and respiratory symptoms; and
• 12.5 million fewer days with respiratory illnesses and symptoms, including work loss days, restricted activity days, and school days.

Additionally, the implementation of Clear Skies will bring greater compliance with the existing air quality standards.

Economic Benefits

Clear Skies represents a significant financial opportunity to reduce the cost of compliance and enforcement associated with clean air initiatives as well as to create additional job opportunities. The total annual cost of the Clear Skies implementation is projected to be $6.3 billion ($1999) in 2020, which represents a significant savings from the EPA base case costs. The net present value (NPV) of the difference in costs between Clear Skies and the EPA Base Case is $52.5 billion ($1999) for the period between 2005 and 2025.³

Additionally, Clear Skies will cause a production shift for coal to the Appalachian and interior regions. Because these areas require more intensive labor to mine, the program will generate additional jobs for coal miners. The net increase in jobs by 2020 will be approximately 3,000. Critics of the Clear Skies legislation claim that it reduces regulations and allows greater levels of pollution in the long term. While expert opinions can be found to support both sides of this argument, it is important to get past this point, and look at the immediate impact. Clear Skies requires reductions in current pollution levels relative to the Clean Air Act, reductions that are needed today and can’t be delayed. While no policy can be perfect, it is better to support Clear Skies today, and realize its immediate benefits, than to do nothing and let polluters continue to harm our environment.

Conclusion

Clear Skies obviously offers significant environmental and economic benefits for America. Environmental activists have criticized the program, yet they offer no serious alternative for improving air quality while seriously controlling the economic impact. In light of this absence of serious alternatives, and the clear benefits, continued support by legislators for the passage and adoption of the Clear Skies Act is recommended.

¹ US Environmental Protection Agency. Clear Skies: Basic Information. http://www.epa.gov/air/clearskies/basic.html

² US Environmental Protection Agency. Clear Skies: Human Health and Environmental Benefits. http://www.epa.gov/air/clearskies/benefits.html

³ “The Clear Skies Act: Technical Support Package”. US Environmental Protection Agency. July 2003. Section C.

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