The 1990 Clean Air Act Amendments and Acid Rain Program
Electric utilities fiercely opposed the 1990 cap‑and‑trade program for sulfur dioxide, warning of huge costs and blackouts. Once implemented, compliance proved far cheaper than predicted, and the program dramatically cut acid rain and associated health harms.
Companies quickly found low‑cost ways to cut pollution, beating regulatory targets at lower than expected cost.
The episode became a textbook case of industry overstating compliance burdens and the benefits of strong, well‑designed standards.
It offers a cautionary parallel to current claims that Biden’s vehicle rules are “unachievable,” suggesting today’s cost fears may also be overstated.
