Update on Multi-pollutant Legislation Richard Long, Region 8 Wrap Meeting Nov. 14, 2001

Testimony on S.556 Jeffords Bill  Nov. 1 testimony by Jeff Holmstead before senate environment and public works committee  S.556 – Jeffords bill S.5656 addresses power plant emissions of SO2, Nox, mercury, and CO2 Requires cap and trade program while also requiring controls on specific power plants more than 30 years old

Administration Reaction  Supports developing new approach to controlling emissions from power sector  CO2 should be addresses by Cabinet level working group rather than in CAA CO2 controls – big shift to natural gas  Controls on specific plants problematic for trading program

Administration Reaction (con’t)  Short lead time for 90% mercury reduction  Potential increases in electricity rates  Lacks integration with CAA programs (including Nox SIP call and WRAP strategy)  Lacks allocation scheme

EPA supports a 3-Pollutant Approach  Administration developing 3-pollutant proposal (excluding CO2)  Guiding Principles Increase energy supplies Protect environment Preserve energy diversity (including use of clean coal) and energy reliability Improve efficiency of power industry

Benefits of 3-pollutant Approach  Provide significant emission reductions using cost effective market cap and trade system  Reduce numerous effects on health and environment Fine PM Ground level ozone Mercury deposition to water Regional haze Acid deposition Nitrogen deposition to water bodies

Benefits (con’t)  Ensure accountability for reductions  Coordinate utility compliance with multiple clean air programs  Provide certainty and flexibility for industry  Ease burden on States

Summary  Support for new approach for power sector emissions  Concerns on provisions of existing proposals  Administration still developing 3P bill  Look forward to future hearings to discuss details  Continue working with Congress and stakeholders on this important issue