New Regulations on Horizon

Efforts by the U.S. Environmental Protection Agency (EPA) to regulate emissions of greenhouse gases from stationary sources, like power plants, as pollutants under the federal Clean Air Act have drawn objections from congressional and state leaders and others who say the law?last revised in 1990?was never intended for such purposes.

“EPA is not equipped to consider the very real potential for economic harm when regulating [greenhouse gas] emissions,” stated governors of 20 states in a March 2010 letter to congressional Democratic and Republican leaders. “Without that consideration, regulation will place heavy administrative burdens on state environmental quality agencies, will be costly to consumers, and could be devastating to the economy and jobs.”

Created in 1970, EPA fashions regulations to protect the environment and safeguard public health as authorized in bills passed by Congress. Over time, its jurisdiction has grown to cover numerous items that impact electric bills, including power plant emissions, coal combustion byproducts, and water.

While EPA has begun promulgating a series of climate change-themed rules that will boost the cost of electricity and other energy prices?resulting in higher prices for consumers and businesses?few actions have been as controversial as its move to curb greenhouse gas emissions, notably carbon dioxide, from stationary sources. A 2007 U.S. Supreme Court ruling determined that EPA can regulate greenhouse gas emissions from new motor vehicles under the Clean Air Act if the agency determines they threaten public health and welfare. In April 2009, EPA took the formal step of issuing an endangerment finding on the emissions and soon began developing greenhouse gas regulations that have since expanded to include power plants (as of January 2011).

Electric cooperatives are urging Congress to delay EPA regulation of greenhouse gas emissions from power plants until there is sufficient time to consider a legislative solution.

“It is the responsibility of Congress to decide this issue, not EPA,” declares National Rural Electric Cooperative Association (NRECA) CEO Glenn English. “The Clean Air Act remains the wrong tool to handle greenhouse gas emissions from stationary sources?it was designed to reduce specific pollutants on a local or regional level where proven technology existed. When it comes to controlling carbon dioxide emissions from coal- and natural gas-fired power plants, tested, commercially viable solutions are not available.”

He concludes: “In many ways, regulating carbon dioxide emissions under the law is akin to using a hammer to tighten a screw. You may eventually get the screw hammered in, but better tools are needed?ones that don’t put your electric bills at risk during these tough economic times.”

Source: NRECA