August 15, 2006

Proposed PM2.5 regulation goes too far

By Quin Shea, Edison Electric Institute

The U.S. electric power industry is committed to improving America's air quality. Progress over the past 25 years has been real and significant and something we all can be proud of. However, the U.S. Environmental Protection Agency (EPA) is now proposing a new, lower limit on emissions of particulate matter that promises the public few, if any, benefits. What's more, the costs of compliance with the new standard will be as real and significant as past progress. The EPA should determine if its existing standards are working before seeking to tighten them further.

 

Since 1980 the U.S. power industry has reduced its emissions of sulfur dioxide (SO2) and nitrogen oxides (NOx) by more than 40%. Thanks to the efforts of power producers and others, overall emissions of the six principal air pollutants have fallen by 54% since 1970. What's amazing is that over the same period, America's electricity consumption and gross domestic product have almost doubled. The foundation of this progress has been—and continues to be—compliance with air quality standards based on sound science.

What the EPA is proposing is lowering its daily National Ambient Air Quality Standard (NAAQS) for fine particulate matter (less than 2.5 microns in diameter) from 65 to 35 micrograms per cubic meter. The new PM2.5 standard is so stringent that estimates are it will cost U.S. industry $20 billion to $60 billion to comply with it—every year! If that proves true, the proposed PM2.5 standard would be the most expensive federal regulation put on the books since the Office of Management and Budget began keeping records in 1981.

The consequences of adopting the new standard would be felt far and wide. The hundreds of communities that would likely fail to comply with it would become nonattainment areas. Attracting new businesses or expanding existing plants in these areas would become more difficult. Some industrial plants might have to shut down or relocate. New or expanded plants would have to obtain offsets for emissions from their new activity by reducing emissions at other facilities by an even greater amount.

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