WHY ADOPT OUTPUT-BASED ENVIRONMENTAL REGULATIONS?
As noted in “Output-based Regulations: A Handbook for Regulators” from the EPA, such regulations: “recognize the pollution prevention benefits of efficient energy generation and renewable energy technologies. These clean energy technologies prevent pollution by using less fuel and, thus, reducing associated emissions. Output-based regulations encourage energy efficiency and renewables by relating emissions to the productive output of the process, not to the amount of fuel burned. While output-based regulations have been used for regulating many industries, input-based regulations have been traditionally used for boilers and power generation sources. Recently, this trend has begun to change as regulators seek to promote pollution prevention and provide more compliance flexibility to combustion sources.” In addition to NOx, SOx, and particulate matter emissions, output-based environmental regulations are an appropriate tool for managing climate change emissions as well. See “Reduce Green
