Clean Air Act Amendments of 1990 – An Eastern Coal Producer’s View

Acid rain legislation included in the Clean Air Act Amendments of 1990 caused a great deal of uncertainty regarding the price, source and production quantities of coal supplied to the eastern coal market. Powder River Basin and other western coals continue a rapidly accelerating migration eastward. South American coals move into the northern markets. States are proposing legislation to assist utilities in complying with the new regulations in hopes of maintaining their own coal industries. Some utilities question the long-term availability of eastern compliance coal. Major coal producers must make decisions now to assure their continuing presence in the market place. Several companies have adopted a strategy to acquire eastern compliance reserves, while others have invested in technology to compete as a low-cost producer. Legislation "Acid rain." This is a topic that was debated within the scientific, environmental and industrial communities for years. Those discussions resulted in a large outlay for the federal National Acid Precipitation Assessment Project (NAPAP), which was then ignored. Acid rain then became the subject of a "60 Minutes" broadcast that debunked the acid rain theory, supporting the NAPAP study conclusions. In the final outcome, however, acid rain was the driver for the Clean Air Act Amendments of 1990.