Utility MACT Takes Effect

The most expensive energy regulation in the history of the United States quietly took effect on April 16^th, as the Environmental Protection Agency’s Utility MACT rule, formally known as Mercury and Air Toxics Standards began its implementation phase. The formal implementation of Utility MACT starts the clock on a three-year compliance period mandated under the Clean Air Act.

Utility MACT will affect approximately 1,400 units at almost 600 power plants nationwide, including about 1,100 coal-fired units and some 300 that use oil. These units will be required to install technology to reduce emissions of mercury and other substances.

One of the EPA’s most unpopular rules, Utility MACT last year drew a legal challenge from attorneys general of twenty-five states and one territory (Guam), who argued that the rule’s compliance timelines were too short and that the rule could significantly harm the affordability and reliability of American power. Prior to the April 16^th implementation date for Utility MACT, a number of new groups filed suit against the EPA to challenge the rule. These groups include the Utility Air Regulatory Group (UARG), Colorado’s Tri-State Generation and Transmission Association, and the American Public Power Association (APPA), according to a report by POWER Magazine.

Those affected by the rule are not the only ones upset. Late last month, a contingent of fourteen members of the House Energy & Commerce Committee sent a letter to the White House questioning the EPA’s refusal to answer the committee’s concerns over the cost of Utility MACT. Specifically, the members believe that the EPA is calculating only a fraction of the costs that the regulation poses.

“While EPA moves ahead with what could ultimately be the costliest energy regulation in American history, it is good to see that a number of groups and elected leaders continue to ask important questions about the cost and total impact of Utility MACT,” said PACE Executive Director Lance Brown.