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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