5.3. ERMUSR 03-14-2006 - Laserfiche WebLink

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Minnesota Municipa/ Uti/ities Association Air Quality Position Statement The Clean Air Act (CAA) was passed in 1970 to achieve and maintain healthy air quality in the United States. As amended, CAA addresses control standards for new generating plants, protection of visibility in pristine areas, and control of acid rain precursor emissions. CAA currently includes multiple programs designed to reduce the emissions of certain pollutants for power plants. The large number of programs, their conflicting compliance deadlines, and the cost of pollution control technologies have increased the costs associated with generating electric power from fossil fuel plants. To address this patchwork of regulatory programs, the passage ofmulti-pollutant control legislation that amends and updates CAA is an important issue for the power generation sector. As Congress considers clean air reforms, any legislation to alter the current regulatory scheme for power plants should include the following concepts to achieve a proper balance of economic, energy and environmental goals: N • Limit only the emissions of sulfur dioxide (SOZ~, nitrogen oxides (NOx), and mercury (Hg). Some members of Congress support legislation that would limit emissions of carbon dioxide (C02), which would be extremely costly and could impair the security of the nation's electricity supply. A COz program involving o continued research on climate change and voluntary reduction offers a better o approach to dealing with this concern. N • Allow plant modifications that improve efficiency without increasing o emissions. The continuing uncertainty over when New Source Performance Standards apply to plant modifications must be resolved. New Source Review Z (NSR) should not be used to prevent plant owners from making modifications that T would increase plant efficiency and output without increasing emissions. • Rely on regulation or legislation that provides innovative and flexible °' mechanisms for achieving emissions goals. Using market-based programs similar to the cap and trade system for limiting S02 emissions is a more effective way to deal with controlling multiple air pollutants than the current, often `° redundant approach to reaching air quality standards. • Base legislation and regulatory reform on science and cost-effectiveness, taking into account the impact on energy reliability and security. Environmental goals are best achieved when those goals are grounded in good science, supported by the public, and addressed in the most cost-effective mariner. • Recognize existing "clean plants" and "clean utilities." Ironically, some proposals would require clean plants to further reduce pollution emissions at the same reduction rate as dirty plants, forcing customers to pay even higher costs for incremental improvements with diminishing returns. Minnesota Municipal Utilities Association February 2006