House Republicans Probe EPA Processes on Power Plant Rulemaking

Republican leaders of the U.S. House Energy and Commerce Committee on Monday sent a letter to Environmental Protection Agency (EPA) Administrator Lisa Jackson seeking information about the agency’s planned implementation of regulations affecting the electric power sector. Among other issues, they asked how the agency makes decisions and what analysis it uses to support the development of rules.

Committee Chair Rep. Fred Upton (R-Mich.), Energy and Power Subcommittee Chair Rep. Ed Whitfield (R-Ky.), and Oversight and Investigations Subcommittee Chair Rep. Cliff Stearns (R-Fla.) asked the EPA to provide economic analyses developed in response to Jackson’s January 2010 stated intent to "develop a comprehensive strategy for a cleaner and more efficient power sector." Jackson had also said in January that the comprehensive strategy would include "strong but achievable emission reduction goals for [sulfur dioxides (SO2), nitrogen oxides (NOx)], mercury and other air toxics."

The Obama administration has adopted or proposed a string of regulations affecting the power sector, including a proposed Transport Rule (announced in July 2010); a proposed utility national emissions standard for hazardous air pollutants; and greenhouse gas (GHG) regulations, including New Source Performance Standards for power plants, which the agency is expected to propose in July 2011.

Other significant rules recently finalized or proposed include the June 2010 proposed coal ash rule; National Ambient Air Quality Standards for ozone, particulate matter, SO2, and NOx; and the March 2011 proposed cooling water intake structures rule.

The lawmakers also questioned whether the EPA had consulted with the North American Electric Reliability Corp. (NERC) and other regional entities on issues related to electric reliability, and with the Federal Energy Regulatory Commission (FERC), the Department of Energy (DOE), and the Office of Management and Budget about the potential impact of GHG or other rules on electricity reliability.

The lawmakers said the request would help them understand the EPA’s analysis and planning processes as they applied to the new rules on the power sector. Separate letters questioning the EPA’s processes were also sent to the DOE and to FERC. The lawmakers said the investigation was to uncover “the extent to which EPA has consulted or coordinated” with the federal agencies in development and planning for implementation of the rules it had passed.

“The committee is concerned that the Obama EPA has been regulating too much too fast, without fully analyzing the feasibility and economic impacts of its new rules,” the lawmaker said. “The stakes could not be higher; if federal agencies impose unaffordable or unworkable rules that drive up the price of electricity, it will directly impact consumers and businesses, lower the standard of living, and impede the economic growth necessary for this nation to create jobs and emerge strongly from a devastating recession.”

Sources: POWERnews, EPA, House and Energy Committee