EPA Final Rule for Coal Plants Deemed ‘Unfortunate’ by Industry

Photographer: Anthony Suau

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Photographer: Anthony Suau

The U.S. Environmental Protection Agency’s rule to curb toxic emissions from coal-fired power plants drew criticism from an industry lobbyist and praise from an environmentalist even before it is released this week.

The regulation, the most-expensive order aimed at companies being considered by President Barack Obama’s administration, was signed by the agency Dec. 16 and is set to be published as early as today or tomorrow. Industry groups had urged the EPA to give companies an additional year to comply.

“The final rule is expected to be pretty close to the proposed rule, which is unfortunate,” Scott Segal, a lobbyist at Bracewell & Giuliani LLC in Washington, representing operators of coal-fired plants such as Southern Co. (SO), said yesterday in an e-mail. The “rules will impose significant costs on consumers and on industries that depend on affordable and reliable power to remain competitive.”

The rule, estimated to cost $11 billion when proposed by the EPA this year, was initiated after a federal court threw out standards issued by the Bush administration to limit mercury pollution. Under the proposal, plants have three years to install controls curbing the release of toxic materials when coal is burned to generate electricity.

The final regulation includes details for how companies such as American Electric Power Co. (AEP) and Southern can apply for additional time to cut emissions of mercury, arsenic and acid gases, said Howard Learner, executive director of the Environmental Law & Policy Center in Chicago.

‘Modest Waivers’

“There are some provisions for EPA to grant modest waivers,” Learner said in an interview, citing a briefing on the rule. Overall, “these standards mean power plants will invest in modern pollution controls, and that investment will create jobs, cleaner air and better public health.”

The Washington Post reported in its Dec. 17 edition that the regulation was signed in time to meet a deadline negotiated with a federal court.

“We will make details available when we are ready to make an announcement,” Betsaida Alcantara, a spokeswoman for the EPA, said in an e-mail Dec. 17. “As we have made clear, any standard will maximize flexibilities, while providing extensive public health protections from dangerous pollutants.”

The EPA proposal incorporates three separate limits: one for mercury, a second for acid gases and a third for particulate matter, which is used to target emissions of metals such as chromium, selenium and cadmium. Taken together, the health and economic benefits from cleaning up pollution will dwarf the costs to industry, according the agency’s analysis.

Estimated Costs

As recently as Dec. 14, the leaders of the industry trade group, Edison Electric Institute, met with White House officials, according to records published on the White House website. The group has organized the effort to garner extra time to comply with regulation.

The agency has resisted the industry push. Under the rules of the Clean Air Act, plant operators get three years to install pollution scrubbers. The EPA has said it will grant additional time on a case-by-case basis.

The final rule gives the companies details for seeking more time to comply, in limited instances, Learner said.

American Electric, based in Columbus, Ohio, said in June that proposed EPA rules would force it to close parts or all of 11 power plants, eliminating 600 jobs. Complying with the rules would cost $8 billion, most of it on cleaning up or shutting plants that lack pollution-control equipment, it said.

Lives, Jobs

The EPA says the rule would save lives and create 9,000 more jobs than would be lost, as power plants invest billions of dollars to install pollution scrubbing systems or build cleaner natural gas plants. It estimates the regulation could prevent 17,000 premature deaths from toxic emissions.

Segal said that the agency’s job estimate is off.

“For every one job that may be created in order to comply with the rule, we expect four higher-paying energy and manufacturing jobs to be lost,” he said.

When the EPA signs the final regulation that means it has been cleared by the White House Office of Management and Budget, which reviews proposed agency rules. The White House scrapped another, more expensive, EPA proposal to curb smog-causing ozone in September.

To contact the reporters on this story: Mark Drajem in Washington at mdrajem@bloomberg.net;

To contact the editor responsible for this story: Larry Liebert at lliebert@bloomberg.net

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