The U.S. Environmental Protection Agency (referred to as EPA or the Agency) is developing regulations under Section 111 of the Clean Air Act (CAA) for new stationary combustion turbines. The majority of stationary combustion turbines burn natural gas and are used in the electric power and natural gas industries. The regulations are designed to reduce emissions of nitrogen oxides (NOx) and sulfur dioxide (SO(sub 2)) generated by the combustion of fossil fuels in new combustion turbines. To inform this rulemaking, the Air Benefits and Costs Group (ABCG) of EPA's Office of Air Quality Planning and Standards (OAQPS) has developed an economic impact analysis (EIA) to estimate the potential social costs of the regulation. This report presents the results of this analysis in which a market model was used to analyze the impacts of the air pollution rule on society. The CAA's purpose is to protect and enhance the quality of the nation's air resources (Section 101(b)). Section 111 of the CAA establishes the authority of EPA to set new source performance standards (NSPS) for criteria pollutants. This report evaluates the economic impacts of pollution control requirements placed on stationary combustion turbines under these amendments. These control requirements are designed to reduce releases of NOx and SO(sub 2) from new sources into the atmosphere.

Project officer: Larry Sorrels. February 2006. EPA-452/R-06-001. Includes bibliographical references.