If we have a new legislation that significantly reduces emissions of SO2, NOx and mercury, we can eliminate many of the individual programs that apply to the power generation sector and replace them with a system that will reduce the administrative burden on industry and governments, use market-based incentives to keep compliance costs low, and provide the industry with more certainty about its future regulatory obligations.
If the emissions were reduced then there would not be a need for as many programs, which in turn could use the funding towards ways to keep costs down.
This interest rate is both paid on outstanding debt held by the public and earned on nonfederal financial assets acquired by the government once debt held by the public is eliminated.