Sunday, December 5, 2010

EPA: Upton urges agency to go slow on cooling-water rule for power plants by Katherine Ling, E&E reporter

EPA: Upton urges agency to go slow on cooling-water rule for power plants by Katherine Ling, E&E reporter


A leading contender for the House Energy and Commerce Committee's gavel put U.S. EPA on notice today that he is concerned about a potential rule to regulate the temperature of cooling water at power plants and large industrial facilities.

Rep. Fred Upton (R-Mich.) asked EPA to provide a timeline and supporting documents for a proposed and final rule for the cooling water intake rule.

The rule could affect more than 400 power plants, and potential retrofits required by a rule could cost between $200 million and $300 million per unit for coal and $700 million to $1 billion for nuclear power plants, Upton said in a letter to the agency.

At issue is a proposed cooling-water intake rule that could require use of "best available technology" to mitigate the impact on aquatic life of power plants' drawing in water to cool generators. EPA is expected to finalize the regulation next year.

"I further caution the agency against finalizing a settlement agreement that does not provide EPA with the timing and flexibility to craft a sound rule that avoids unintended adverse consequences to the environment, energy supply and reliability that a one-size-fits-all technology mandate would create," Upton said.

Upton also said he wanted a minimum of 180 days of comment period on the rule and for the regulation to be subject to "full congressional oversight and review."

An EPA spokesman said Upton is just making guesses at this point.

"Congressman Upton is speculating about a rule that EPA has not even proposed, or even sent to OMB for review - or even finalized internally," said Brendan Gilfillan.

"In the absence of the rule, he is also assuming all of the worst-case scenarios will come true. As soon as we do have a proposal we will announce it and, as always, there will be plenty of opportunity for public review and input."

The proposal came under fire, along with three other EPA regulations expected next year, for potential impacts on electric reliability in a recent report by the North American Electric Reliability Corp. (E&ENews PM, Oct. 26).

The Edison Electric Institute has also criticized the combination of impending EPA regulations -- which also includes new greenhouse gas regulations, coal ash and best available technology requirements -- as a "train wreck" that will hurt electricity prices and reliability.

The World Resources Institute and other environmental organizations, have pushed back against EEI's complaints. WRI said in a Web posting today that the power sector has been "on notice" for several years about impending regulations.

"EPA is pursuing a realistic timeline over the next decade to bring the electric power industry into compliance with the law. ... In each of its rulemakings, EPA provides for an extensive, open public process based on evidence. This leads to more robust and fair rules for the electric power sector," said John Larsen, senior associate in WRI's Climate and Energy Program.

Read the full text of Upton's letter HERE.

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