Acid Rain Retirement Fund
Encyclopedia
The Acid Rain Retirement Fund (A.R.R.F) is an all-volunteer, non-profit environmental educational organization dedicated to reducing pollution by purchasing and “retiring” marketable sulfur dioxide emissions allowances issued by the U.S. Environmental Protection Agency’s Acid Rain Program. A.R.R.F. was created in 1995 and purchased its first allowances in that year. A.R.R.F. provides citizens with information about access to pollution markets, along with the ability to directly prevent pollution.
A.R.R.F is one of only four organizations listed on the home page of the U.S. Environmental Protection Agency’s Clean Air Markets as purchasing allowances to take them off the market. None of the major national environmental groups are listed there. A.R.R.F. is incorporated in the State of Maine
and recognized as a Section 501(c)(3) nonprofit educational organization by the U.S. Internal Revenue Service
, making donations to it deductible on income taxes as charitable contributions.
of 1990, each year in March the U.S. Environmental Protection Agency auctions off to the highest bidder about 250,000 pollution allowances that enable companies to emit one ton of sulfur dioxide. Those companies face statutory penalties of $2,000/ton for every ton of sulfur dioxide they emit in excess of those for which they own allowances. Emissions allowances are bought and sold daily through the Chicago Board of Trade like soybeans, rice or any other commodity. Only a limited number of allowances are available each year. After those allowances are used, no more can be issued. The Acid Rain Retirement Fund raises money and bids alongside polluters in the annual auctions for as many allowances as their funds can buy. But instead of using or trading them, A.R.R.F. retires them permanently, taking allowances off the market and keeping sulfur dioxide out of the air. Thus, every pollution allowance A.R.R.F. removes from circulation prevents that pollution from being legally emitted into the air.
According to A.R.R.F., EPA auction results 1993-2011 indicate groups or individuals who purchased emissions allowances for purposes other than releasing air pollution own the right to emit 1,321 tons per year of sulfur dioxide. Although most have purchased only one or a few tons, this adds up to considerably more than the 760 tons/year allocated by law to the Miami Fort #5 generating unit in Ohio.
Since many purchases were made in earlier years, and unused allowances have accumulated, these groups now own the right to emit 16,547 tons of sulfur dioxide in 2011. That’s more than the annual allocation of allowances to 132 of the 250 dirtiest generating units in the United States (some are allowed to emit almost 95,000 tons/year).
, Land O’ Lakes, WI; Students for Environmental Action, East Lansing High School
, East Lansing, MI; Jesuit High School 6th Graders, New Orleans, LA; Humboldt State University Natural Resources Club, Humboldt, CA; and the Environmental Law Council at the University of Pittsburgh School of Law
. Donations have also been received from groups in Sweden and Japan.
A.R.R.F is one of only four organizations listed on the home page of the U.S. Environmental Protection Agency’s Clean Air Markets as purchasing allowances to take them off the market. None of the major national environmental groups are listed there. A.R.R.F. is incorporated in the State of Maine
Maine
Maine is a state in the New England region of the northeastern United States, bordered by the Atlantic Ocean to the east and south, New Hampshire to the west, and the Canadian provinces of Quebec to the northwest and New Brunswick to the northeast. Maine is both the northernmost and easternmost...
and recognized as a Section 501(c)(3) nonprofit educational organization by the U.S. Internal Revenue Service
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
, making donations to it deductible on income taxes as charitable contributions.
Marketable emissions allowances
Pursuant to the Clean Air ActClean Air Act
A Clean Air Act is one of a number of pieces of legislation relating to the reduction of airborne contaminants, smog and air pollution in general. The use by governments to enforce clean air standards has contributed to an improvement in human health and longer life spans...
of 1990, each year in March the U.S. Environmental Protection Agency auctions off to the highest bidder about 250,000 pollution allowances that enable companies to emit one ton of sulfur dioxide. Those companies face statutory penalties of $2,000/ton for every ton of sulfur dioxide they emit in excess of those for which they own allowances. Emissions allowances are bought and sold daily through the Chicago Board of Trade like soybeans, rice or any other commodity. Only a limited number of allowances are available each year. After those allowances are used, no more can be issued. The Acid Rain Retirement Fund raises money and bids alongside polluters in the annual auctions for as many allowances as their funds can buy. But instead of using or trading them, A.R.R.F. retires them permanently, taking allowances off the market and keeping sulfur dioxide out of the air. Thus, every pollution allowance A.R.R.F. removes from circulation prevents that pollution from being legally emitted into the air.
A teaching moment
Sulfur dioxide is the principal contributor to acid rain, causing respiratory disorders, impairing visibility, harming the health of fish and wildlife, and degrading lakes and ponds. Research has shown lakes and streams in New England have been slow to recover from the effect of acid rain, compared to some in Wisconsin, New York and Pennsylvania. Acid rain brings with it mercury deposition, and together they cause tremendous damage to human health and the environment. Research by the Hubbard Brook Research Foundation recently identified nine suspected mercury hotspots in the northeastern U.S. and Canada. Harvard University economist Robert Stavins estimates about $1 billion per year has been saved in the United States by cleaning up since the Acid Rain Program went into effect.Educational programs
The Acid Rain Retirement Fund uses participation in pollution markets as a way to educate children and adults about the sources and detrimental affects of air pollution and acid rain, and actions people can take to reduce such pollution. Presentations are made in school classrooms about the causes and effects of acid rain, and students are encouraged to design their own fundraising efforts. The A.R.R.F. website contains links about acid rain and suggestions for educational activities and fundraising efforts.Accomplishments to date
A.R.R.F. has participated in annual EPA auctions of emissions allowances every year since 1995, and in 2011 owns the right to emit 211 tons of sulfur dioxide per year, plus whatever amount it has not emitted in previous years. That amount will increase by another 100 tons in 2018, when allowances A.R.R.F. purchased in the 7-year advance auction of 2011 are eligible for use. Because A.R.R.F. did not exercise its right to emit any pollution during 1996-2011, “banking” its emissions allowances for the future, A.R.R.F. in 2011 holds the legal right to emit a total of 1,120 tons (2,240,000 pounds) of sulfur dioxide in 2011.According to A.R.R.F., EPA auction results 1993-2011 indicate groups or individuals who purchased emissions allowances for purposes other than releasing air pollution own the right to emit 1,321 tons per year of sulfur dioxide. Although most have purchased only one or a few tons, this adds up to considerably more than the 760 tons/year allocated by law to the Miami Fort #5 generating unit in Ohio.
Since many purchases were made in earlier years, and unused allowances have accumulated, these groups now own the right to emit 16,547 tons of sulfur dioxide in 2011. That’s more than the annual allocation of allowances to 132 of the 250 dirtiest generating units in the United States (some are allowed to emit almost 95,000 tons/year).
Fund raising
Fund raising projects organized by A.R.R.F. with other groups in fifteen states include a paper recycling drive by eighth graders; sale of blue paper cut-out raindrops at 50 cents each to friends and family by middle-schoolers (who put them on classroom walls with names of purchasers on them); benefit concerts; bake sales, and direct funding requests to businesses and individuals. Funds have been donated by individuals and groups from all over the United States, including sixth-grade students at South Kortright Central School in South Kortright, NY; Queensbury Middle School in Queensbury, NY; Lynx House, Conserve SchoolConserve School
Conserve School is a semester school for environmentally and outdoor minded high school students located in Land O' Lakes, Vilas County, Wisconsin, United States...
, Land O’ Lakes, WI; Students for Environmental Action, East Lansing High School
East Lansing High School
East Lansing High School is a public high school in the city of East Lansing, Michigan, United States. It is managed by the East Lansing Public Schools district....
, East Lansing, MI; Jesuit High School 6th Graders, New Orleans, LA; Humboldt State University Natural Resources Club, Humboldt, CA; and the Environmental Law Council at the University of Pittsburgh School of Law
University of Pittsburgh School of Law
The University of Pittsburgh School of Law was founded in 1895, and became a charter member of the Association of American Law Schools in 1900...
. Donations have also been received from groups in Sweden and Japan.
Clean air certificates
Since 1995, A.R.R.F. has recognized donations of $25 or more by sending a Clean Air Certificate on parchment-like paper to the donor or a person or group they designate, saying how many pounds of air pollution will be retired in their name. Numerous school classrooms display these certificates.See also
- Acid rainAcid rainAcid rain is a rain or any other form of precipitation that is unusually acidic, meaning that it possesses elevated levels of hydrogen ions . It can have harmful effects on plants, aquatic animals, and infrastructure. Acid rain is caused by emissions of carbon dioxide, sulfur dioxide and nitrogen...
- Acid Rain ProgramAcid Rain ProgramThe Acid Rain Program is a market-based initiative taken by the United States Environmental Protection Agency in an effort to reduce overall atmospheric levels of sulfur dioxide and nitrogen oxides, which cause acid rain...
- Air pollutionAir pollutionAir pollution is the introduction of chemicals, particulate matter, or biological materials that cause harm or discomfort to humans or other living organisms, or cause damage to the natural environment or built environment, into the atmosphere....
- Emissions tradingEmissions tradingEmissions trading is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants....
- Nitrogen oxideNitrogen oxideNitrogen oxide can refer to a binary compound of oxygen and nitrogen, or a mixture of such compounds:* Nitric oxide, also known as nitrogen monoxide, , nitrogen oxide* Nitrogen dioxide , nitrogen oxide...
- Sulfur dioxideSulfur dioxideSulfur dioxide is the chemical compound with the formula . It is released by volcanoes and in various industrial processes. Since coal and petroleum often contain sulfur compounds, their combustion generates sulfur dioxide unless the sulfur compounds are removed before burning the fuel...