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EPA'S Cross State Air Pollution Rule (CSAPR)

       The Environmental Protection Agency (EPA) recently issued the Cross State Air Pollution Rule (CSAPR) which is scheduled to go into effect on Jan. 1, 2012.

       The rule, which is intended to limit the effects of sulfur dioxide and nitrogen oxide across state lines, will affect 27 states and cost billions of dollars which will be paid by consumers through higher electric bills.

       CSAPR is the first of many new EPA regulations set to go into effect over the next couple of years that are expected to cause double-digit increases in electric bills.

       In an effort to protect the interests of ratepayers in our state, Louisiana’s electric cooperatives have joined numerous groups and individuals throughout America warning that an array of looming EPA proposals would have devastating impacts on the economy, including higher energy costs and the loss of countless jobs across the country.

       Electricity reliability organizations also report that CSAPR alone will jeopardize the reliability of the Louisiana electric grid and likely cause rotating power outages throughout the state in the summer of 2012.

       The State of Louisiana and the state Public Service Commission have joined several other states to petition the EPA asking for reconsideration of CSAPR and have also filed for legal relief with the U.S. Court of Appeals. 

       Members of the House Energy and Commerce Committee also recently passed H.R. 2401, the “Transparency in Regulatory Analysis of Impacts on the Nation Act,” which would require a study showing the overall impact of EPA power plant regulations on the U.S. economy. H.R. 2401 would delay implementation of CSAPR and other environmental regulations until that study is completed. While this proposal is expected to pass in the U.S. House of Representatives it is unlikely to pass in the Senate.

       “Issuing a rule of this magnitude and expecting states to comply with it five months later is unprecedented even by EPA’s standards,” said Randy Pierce, CEO of the Association of Louisiana Electric Cooperatives. “The EPA is not allowing time for states to review the models used to construct this rule. We believe their assumptions are flawed, they are hidden from the public and have not been subject to peer review.”

       Pierce said that electric co-ops have been discussing this issue for the past two years with members of Congress and leaders in the state.

       “Our message has been that environmental improvements can be made over time without wrecking the economy and unduly burdening Louisiana consumers. The EPA itself has reported that under current laws, there has been a 71 percent reduction in sulfur dioxide emissions and a 66 percent drop in nitrogen oxide since 1980. We believe we can reach our goals in ways that will not cause crippling job loss, double-digit rate increases and decreased reliability of the electric grid in the country,” Pierce said.

       According to Louisiana Public Service Commissioner Jimmy Field, “We’ve worked hard to get our rates down in Louisiana. Then all of a sudden something out of our control is handed down from Washington that affects not only our rates but our reliability.”

       “Louisiana customers are going to be, literally, taxed by the federal government to satisfy a political motive,” said Commissioner Eric Skrmetta of Metairie. “It is not a health issue.”

       Louisiana’s electric cooperatives, along with other electricity providers in the state, have pledged their support for the state and the Public Service Commission in their efforts to seek legal solutions to reconsider CSAPR.

       Pierce added the EPA seems to be jumping the gun on its new regulations.

       “The EPA is not even scheduled to complete its own analysis of ozone emissions until 2013. So instead of allowing for sufficient time to review studies and receive comments from experts and industry representatives, the agency seems to be moving to enforce regulations without sufficient evidence,” said Pierce. “Further study into federal standards that will cost consumers and communities billions of dollars does not seem like too much to ask.”

       “We applaud the House of Representatives for recently passing a law that would take a close look at the economic impact of EPA rules and order a halt to implementation of the rules until that study is done. I hope the Senate will consider it,” Pierce said.

       In the meantime, electricity providers in 27 states are forced to move toward implementation of CSAPR. While the rule goes into effect in January 2012, Louisiana utilities must begin implementation by “ozone season” which begins May 1, 2012.

       “We have been warning about the impact of these rules,” Pierce said. “This is only the tip of the iceberg. I hope we will see some relief from the court system or Congress. Our plea to co-op members is the same as it has been for the past two years; get involved in these issues, contact your members of congress. Talk to your public service commissioners and state lawmakers. Talk to anyone who will listen about your concerns about how these environmental rules will affect the folks back home.”


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


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