Free Air Emissions Credits: A Path to Economic Growth or a License to Pollute?

by Kym Luttermoser 9. February 2011

On Friday, February 4th, Southern California’s South Coast Air Quality Management District (AQMD) approved a controversial plan that will allow small businesses and public facilities to receive free clean air credits.  The plan’s goal is to stimulate the economy by allowing small businesses (those that emit less than 4 tons of smog-forming pollutants a year) and public utilities to expand and create new jobs without the financial burden of having to pay for credits. 

Clean air credits are normally sold on the open market, and are created when polluters reduce their emissions or shut down.  Public entities that could benefit from this decision include sewage treatment plants and landfills.  AQMD spokesman Sam Atwood says that the agency’s plan “allows for some growth and at the same time allows us to meet clean-air standards.” 

clean air creditsOpponents of the decision believe that issuing the credits for free, instead of forcing polluters to buy the credits, will result in even more pollution in already smoggy region.  The impact on public health is also concerning for local residents who may be at risk for developing respiratory illnesses such as asthma. 

The Air Quality Management District encompasses all of Orange County and parts of Los Angeles, San Bernardino and Riverside counties – an area that is home to almost 17 million people. 

Do you think this is an acceptable compromise between economic growth and public and environmental health?  Do you have suggestions for other methods to balance economic growth while safeguarding public and environmental health?

For more information on the free emissions credits plan, visit the South California South Coast Air Management District’s website: http://www.aqmd.gov .

 

 

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Comments (3) -

Julie Cecere
Julie Cecere United States
2/11/2011 7:26:54 AM #

I am an architect not an EH&S professional, but it would seem to me that granting free air emission credits is like printing more money.  It cheapens the value of the currency and in this case cause more pollution than benefit.  There has got to be a better way to drive commerce without stressing our environment more that we are doing now.  What are other countries doing to strengthen the economy without sacrificing the environment?

Julie Cecere United States | Reply

Kym Luttermoser
Kym Luttermoser United States
2/11/2011 12:31:46 PM #

That is a big question in today’s world!  I think it is a constant struggle for any country to try to balance economics against environmental impacts.  I encourage you to check back with our blog next week, when we’ll be talking about how Australia is trying to handle this exact issue.

Kym Luttermoser United States | Reply

David Sigler
David Sigler United States
2/16/2011 1:43:44 PM #

Cap and Trade works because it incentivises polluters to put on control devices to reduce emissions. These control devices carry very hefty price tags. Some projects in the hundresd of millions of dollars range. Many in the tens of millions of dollars range. This plan for "free credits" undermines the entire system. The demand for these credits is what drives the price up, causing potential producers of credits (the dirty facilities reducing their emissions) to undertake projects that reduce pollution in the area. Giving away credits for free has a two-fold negative effect. It sends a message to potential companies that can undertake reduction projects that the credits they generate will be worth less because the AQMD will just give credits away for free. It also gives multiple small sources (that aggregats into a very large amount of pollution) the ability to pollute the air. This will cause the area to overall be dirtier and the larger facilities will be more heavily regulated with new legislation to reduce their emissions again. The larger facilities will not be the reason for the dirtier air, it will be the aggregation of the smaller sources that received "free credits."

David Sigler United States | Reply

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