Clean Air Proposals Promise Sharp Power Plant Pollution Reductions

Washington, DC

For Release 12/15/2003

Contact: Cynthia Bergman, 202-564-9828 / bergman.cynthia@epa.gov

EPA is proposing a suite of integrated air actions that will significantly reduce current levels of power plant
emissions of sulfur dioxide (SO2), nitrogen oxide (NOx) and mercury. These include the first ever proposed
rule to regulate mercury emissions from coal-burning power plants.

The Utility Mercury Reductions proposal signed today would cut mercury emissions by nearly 70 percent,
while a related proposal to be signed later this week would deeply cut SO2 and NOx emissions in the eastern
United States.

"These actions represent the largest air pollution reductions of any kind not specifically mandated by the
Congress," said EPA Administrator Mike Leavitt. "They strengthen Clean Air Act regulations and standards
to bring Americans the most rapid and significant air quality improvement in a decade."

SO2 and NOx are key contributors to fine particles (PM2.5) – a pollutant responsible for tens of thousands of
illnesses and premature deaths each year. Mercury is a toxic, persistent pollutant that Americans are exposed
to primarily through eating mercury-contaminated fish.

The combined actions are expected to significantly reduce mercury emissions to protect young children and
reduce adverse health effects by lowering the levels of fine particles and ground-level ozone in the air.
Addressing SO2, NOx and mercury in an integrated fashion will produce greater health benefits than would
be achieved by stand-alone regulations.

"We are calling for the largest single industry investment in any clean air program in U.S. history," Leavitt
said. "By addressing all of the Clean Air Act requirements for power plants at one time, we help maintain
affordable energy prices for American consumers."

The proposed Utility Mercury Reductions Rule seeks comments on two approaches for reducing the estimated
48 tons of mercury currently emitted each year by coal-burning power plants in the United States. One
approach would require coal-fired power plants to install currently available pollution controls known as
"maximum achievable control technologies" (MACT) under section 112 of the Clean Air Act. If
implemented, this proposal would reduce nationwide emissions of mercury by 14 tons (29 percent) by the end
of 2007. The second approach would set a mandatory, declining cap on the total mercury emissions allowed
from coal-burning power plants nationwide. This approach, which allows emissions trading, would reduce
mercury emissions by nearly 70 percent from current levels once facilities reach a final mercury cap which
takes effect in 2018.

The longer-term cap and trade approach would deliver far greater benefits than the command-and-control
alternative. The cap-and-trade approach under the proposed rules would require power plants to meet strict
emission caps in two phases. Coordinating the regulation of these three pollutants will help keep costs for
consumers down and guarantee significant pollution reduction even as our economy grows. Strict caps,
coupled with the flexibility of emissions trading, provide a continuously increasing reward for innovation and
the deployment of more effective and less-costly pollution-reducing technologies.
Adoption of the cap and trade approach would require EPA to revise its December 2000 finding that it is
"appropriate and necessary" to regulate utility hazardous air emissions using MACT standards. EPA proposes
such a revision as part of today's package of proposed actions.

The benefits of a cap and trade approach are dramatic and proven. The Acid Rain Trading Program of the
1990 Clean Air Act Amendments resulted in more reductions than required, sooner than required with a very
high rate of compliance and with no litigation to hold up progress.

The Interstate Air Quality Rule, being proposed later this week, would dramatically reduce and permanently
cap SO2 and NOx emissions in the eastern U.S. where these pollutants significantly contribute to unhealthy
air quality. The rule will be an important component of EPA's efforts to implement health-protective fine
particle and 8-hour ozone standards. By significantly reducing airborne pollution, the rule will help states and
localities meet these new standards. EPA estimates that the Interstate Air Quality Rule, combined with the
non-road diesel rules to be finalized early next year, will allow most areas of the country to meet the fine
particle and ozone standards without imposing costly local controls.

"The Bush Administration is committed to protecting public health, and while the Clear Skies Act currently
before the Congress is the best approach to reducing power plant emissions, we need to move forward now to
help States meet stringent new air quality standards," Leavitt said, adding, "We remain committed to working
with our congressional sponsors to move Clear Skies through Congress to ultimately obtain even further
reductions."

For more information, go to: http://www.epa.gov/mercury and http://www.epa.gov/interstateairquality