WASHINGTON--(BUSINESS WIRE)--The Clean Energy Group’s Clean Air Policy Initiative commends EPA for the release of the final Cross-State Air Pollution Rule. While the companies are continuing to review the details of the final rule, its implementation will achieve important air quality, health, and economic benefits by reducing the formation and transport of ozone and fine particulate matter.
The final rule addresses the Clean Air Act’s requirement that states do not continue to contribute significantly to nonattainment of national ambient air quality standards (NAAQS) in other states or interfere with the maintenance of the standards by other states. The final rule applies to 27 states in the Eastern U.S. and replaces the Clean Air Interstate Rule (CAIR), which the D.C. Circuit vacated, and then remanded to EPA, in 2008.
The rule utilizes cost-effective compliance mechanisms, consistent with the D.C. Circuit decision, to ensure necessary and important steps are taken toward improving the air quality in the Eastern U.S. “Based on our initial review of the final rule released today, we believe the compliance dates and emission reductions are reasonable and achievable, while maintaining the reliability of the electric system,” said Michael Bradley, the Executive Director of the Clean Energy Group.
The electricity markets have been anticipating this regulation since the D.C. Circuit’s decision in 2008, in addition to the Utility Toxics Rule scheduled to be finalized this November. “As demonstrated in the recent PJM and ISO-New England forward capacity market auctions for 2014 and 2015, companies are already factoring in the capital expenditures that will be required to comply with the rules,” said Bradley.
Regulatory certainty is critical for the electric power industry to be able to make long-term capital investments, and this rule provides the incentives needed to transition to cleaner generation. In addition to addressing the current NAAQS, the rule also provides a predictable methodology to reflect any revised NAAQS.
The Clean Energy Group’s Clean Air Policy Initiative is a coalition of electric power companies dedicated to responsible energy and environmental stewardship. The member companies are some of the nation’s largest generators of electricity, with over 170,000 megawatts of electric generating capacity (including 110,000 megawatts of fossil generating capacity) throughout the U.S., and serve nearly a fifth of all U.S. electric customers.