A few short weeks ago, the hopes of those advocating for sensible regulatory policy were buoyed when EPA announced it would delay implementation of new ozone standards, which threatened to be the costliest regulation in the agency’s history. Now, battle lines are drawn for the likely mid-November release of Utility MACT, a regulation to limit mercury and other emissions from electric utilities.
At the heart of Utility MACT is a 3-year timeline for power generating facilities, mostly coal-fired plants, to install a suite of costly new technology. EPA’s own estimate of the cost is nearly $11 billion, although other estimates from sources like the Energy Information Administration place the cost at more than $300 billion. Some in the utility sector fear the logistics of the required upgrades, with utilities across the nation vying for the same resources at the same time, might be a more prohibitive factor than the high cost. Based on this evidence, the North American Electric Reliability Corporation has estimated that Utility MACT could result in the shutdown of nearly 50,000 MW of generating capacity by 2018.
These fears have caused a number of groups to urge EPA to delay its rulemaking. Last week, Americans for Prosperity joined with its colleagues in signing a petition asking the agency to reconsider its approach to controlling emissions. State groups such as the Georgia Chamber of Commerce have also entered the debate, asking congressional leaders to pass a regulatory relief measure that would delay Utility MACT and other costly regulations. In June, PACE wrote its own letter to EPA urging the delay of Utility MACT rulemaking. These letters are just a few of the many calls for a curtailment of regulatory activity.
For their part, EPA officials, still frustrated by the Administration’s decision to delay ozone rules, have made it clear they have no intention of wavering on Utility MACT. As November approaches, be on the lookout for further updates on this regulation and opportunities to make a clear and compelling case for why Utility MACT is not in the best interest of America’s power consumers.
