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rule (which affects industrial boilers and coal-fired electricity and provide relief for small business and governmental <br /> generator units less than 25 MW entities, as required by other federal statutes. We filed <br /> In 2012, the House and Senate also made progress on briefs in the D.C. Circuit U.S. Court of Appeals in <br /> bipartisan legislation to maintain the designation of coal October 2012. Oral arguments in the case are expected <br /> in spring of 2013. A final decision by the court might <br /> ash as a non-hazardous waste and to increase overnight not be announced until late 2013. Without either an <br /> and regulation of coal ash management by the states.This administrative review resulting in additional time or a <br /> legislation,supported by APPA,passed the House and came court-ordered change to the final compliance date, some <br /> close to being included in a broad surface transportation public power utilities may face the prospect of operating <br /> bill(given the use of coal ash byproducts in roads, that was in non-compliance, which could subject them to <br /> appropriate),but did not make it into the final version. enforcement actions by the agency and citizen lawsuits. <br /> However,discussions will resume in 2013. Regardless of <br /> whether such a bill passes, interest in it by a bipartisan, Industrial,Commercial and Institutional Boiler MACT <br /> bicameral group of members of Congress will certainly help Rule - On December 21, 2012, EPA finalized the <br /> keep pressure on EPA not to regulate coal ash as hazardous. rule that had been twice reconsidered by the EPA for <br /> RICE—APPA successfully advocated for reconsideration regulating mercury and acid gases from <25 MW power <br /> by EPA of its original final rule on reciprocating internal plants. While only about two dozen of these units remain <br /> combustion engines (or RICE) to allow for more hours in operation at public power utilities, these units are <br /> of operation under both emergency and other conditions important sources of generation for those communities. <br /> without modification or replacement. Several hundred Often these were electricity and steam providers to local <br /> APPA members own these units, which are often called indus al customers or hospitals and establishment <br /> upon for demand response, voltage support and other of reasonable standards that could be met in a timely <br /> purposes. EPA re-proposed the rule in 2012 to include <br /> more hours of operations and other provisions. APPA <br /> testified at two public hearings, secured assistance from <br /> the U. S. Small Business Administration (SBA)'s Office <br /> of Advocacy, coordinated with allied organizations <br /> seeking similar provisions, and participated in numerous <br /> meetings and discussions with senior EPA staff. The EPA's . <br /> final rule, announced on Jan. 14, 2013, provided 100 <br /> hours for electric utilities, a substantial improvement <br /> over the 2010 rule, which allowed only 15 hours for non- <br /> storm or non-emergency response conditions. EPA's final <br /> rule also includes other features sought by APPA, such <br /> as criteria related to operation of these units to maintain <br /> voltage support. <br /> • <br /> Mercury MACT - In an unprecedented action, APPA <br /> filed both a request for administrative reconsideration <br /> and a lawsuit in federal court in response to EPA's final manner is critical for both public power utilities and <br /> mercury rule (often referred to as Mercury MACT or their commercial and industrial customers. This issue <br /> MATS) to reduce mercury and acid gases from fossil has been before the EPA since 2005. APPA has filed <br /> fuel-fired power plants. APPA's purpose in the litigation numerous comments, held webinars, met with the EPA, <br /> and reconsideration is not to challenge the regulation Office of Management and Budget, and Small Business <br /> of mercury per se, but is to correct EPA's failure to Administration personnel. The EPA's final rule, while still <br /> provide public power utilities with sufficient time to not perfect, did give these units until 2016 to operate <br /> comply with the requirements of the rule in recognition and slightly adjusted the emissions allowed. Perhaps best <br /> of the obligations (set in city ordinance or state law) of all changes was the establishment of the limited use <br /> placed on our members for major capital expenditures, subcategory that allows units to run approximately 800 <br /> procurement procedures, financing, and building hours a year without installation of expensive controls. <br /> new pollution-control equipment. The deadline for <br /> 2.5 <br /> compliance is May 2015, with an opportunity for one PM nd - APPA filed comments in August 2012 opposing <br /> additional year for compliance if requested by a state. We secondary public welfare standards that tighten existing <br /> regulations for emissions of PM 2.5 (particulate matter <br /> have assisted some members in obtaining this additional <br /> less than 2.5 microns in diameter). Although the <br /> year. standards were tightened, APPA is pleased that EPA did <br /> APPA's actions against the final rule are also based on so in a manner that does not easily lead to additional <br /> EPA's failure to carry out its obligations to consider control requirements on power plants. <br /> • <br />