• Utilities win ruling against EPA interstate emissions rule

News
August 21, 2012
Kent Hoover
Washington Bureau Chief
 
A federal court vacated an Environmental Protection Agency rule that would further limit emissions from coal-fired power plants in 28 states.
 
In a 2-1 decision, the U.S. Court of Appeals for the D.C. Circuit ruled the EPA exceeded its authority under the Clean Air Act. The Cross State Air Pollution Rule was designed to protect East Coast states from sulfur dioxide and nitrogen oxide pollution carried by the wind from power plants in other states.
 
The EPA issued this rule in 2011, after federal courts ruled a less-stringent regulation issued in 2005 was inadequate.
 
In today’s ruling, the appeals court ruled the EPA went too far in imposing its authority over state air pollution programs.
 
The 2005 regulation will now remain in effect, pending appeal of today’s ruling. Electric utilities contend the older rule adequately protects the public from interstate air pollution. The new rule would have raised costs for utilities, which in turn, would increase the price of electricity for their customers, they argue.
 
“When the EPA takes liberties with its legal authority, the result is higher prices for consumers, businesses, schools and hospitals,” said Scott Segal, director of the Electric Reliability Coordinating Council. “At a time of economic recession, the country cannot afford sloppy rulemaking of this sort. The EPA can and should do better.”
 
The 2011 rule was challenged by utilities, including the Southern Co., as well as some states affected by the new emissions standards, including Texas.
 
"The EPA's arbitrary and rushed rule threatened hundreds of good-paying jobs in my district, and would have resulted in higher costs and less reliable electricity throughout the country," said Rep. Ralph Hall, R-Texas, who chairs the House Science Committee.
 
The U.S. Chamber of Commerce hopes the EPA will change its approach to regulation and "craft sensible regulations that don't jeopardize economic growth or electricity reliability," said Karen Harbert, president and CEO of the chamber's Institute for 21st Century.
 
Environmentalists were disappointed by today’s ruling, and predicted it would be overturned by a higher court.
 
“This decision allows harmful power plant air pollution to continue to aggravate major health problems and foul up our air,” said John Walke, clean air director at the Natural Resources Defense Council. “This is a loss for all of us, but especially for those living downwind from major polluters.”