Power Plants Continue to Decrease SO­2 Emissions under EPA Cap and Trade Program

Power Plants Continue to Decrease SO­2 Emissions under EPA Cap and Trade Program
Source: U.S. Environmental Protection Agency

The U.S. Environmental Protection Agency announced today that power plants across the country decreased emissions of sulfur dioxide (SO2), a precursor to acid rain, to 7.6 million tons in 2008. Emissions from sources in the Acid Rain Program fell by 52 percent compared with 1990 levels and are already below the statutory annual emission cap of 8.95 million tons set for compliance in 2010.

In a new report, EPA highlights progress made in reducing SO­2 emissions under the Acid Rain Program. Key achievements of the program include:

• All 3,572 electric generating units subject to the program’s SO2 requirements held enough allowances to cover their SO2 emissions, resulting in 100 percent compliance in 2008;
• Emission reductions under the Acid Rain Program have led to improvements in air quality with significant benefits to human health; and
• Sensitive water bodies in the east are showing signs of recovery from acidification.

+ Acid Rain Program 2008 Progress Reports

stupid carbon statement

In September, the Environmental Protection Agency announced it could require the nation’s biggest power plants and industrial operations to report greenhouse gas emissions as early as 2011. The United States Chamber of Commerce and the National Association of Manufacturers have firmly opposed such regulation, saying that it would be legally and technically burdensome, drive up fuel costs by promoting renewable sources

This came from a story in the NY times on 12-28-09 called

Emissions Disclosure as a Business Virtue

tax's on srec's

By Karin Price Mueller/The Star-Ledger

December 22, 2009, 8:00AM

Q. I am in a process of installing solar panels on my house. My solar panels will be generating nine Solar Renewable Energy Credits (SREC). My question: Is the income from the sale of the SREC taxable? I will not ever see that income because it will be used to pay off a loan to PSE&G. Can I assume I do not have to report the income?

— David Chan

A. That’s a question only the Internal Revenue Service could answer.

‘‘All world-wide income is taxable unless specifically exempted by the Internal Revenue Code (IRC),’’ said spokesman Gregg Semanick. ‘‘In this case, it is not exempted by the IRC and is taxable income.’’

Semanick offers you kudos for being savvy enough to generate electricity, and in sufficient capacity to have some left over to sell. But, he said, the income from selling your "product" is taxable. You using the income to pay the PSE&G loan has no bearing on the issue of taxability.

‘‘This is no different than the products of a carpenter, farmer, factory owner, child-care provider, etc.’’ he said. ‘‘Another example: if a person owns a car and decides to use that car to start a courier business so he can apply his courier revenues to the car payments, his income from the courier business is still taxable.’’

Semanick said IRS Publication 525, Taxable and Nontaxable Income, addresses many specific issues and highlights those specifically mentioned in the IRC that may require clarification. But not every specific possibility for generating income — including SREC — is covered in the publication.

IRS Publication 525 does indicate in its introduction that, "Generally, an amount included in your income is taxable unless it is specifically exempted by law."

The bottom line: All world-wide income is taxable unless specifically exempted by the Internal Revenue Code (IRC).

To read IRS Publication 525 in its entirety, visit irs.gov.

Additionally, you should have a conversation with your tax preparer about what kinds of documentation you may need for your tax return. That will allow you to get a head start and discuss with PSE&G the paperwork you’ll need to file with your return. With any luck, you won’t have to call the company in desperation in early April to get the forms you need.

Best of luck with your solar panels!