RS20553 -- Air Quality and Electricity: Initiatives to Increase Pollution Controls
Updated October 25, 2002

	Background

Since the mid-1990s, the U.S. Environmental Protection Agency (EPA) has initiated actions that have resulted in regulatorymandates and enforcement actions that would, if implemented, substantially reduce air pollutants (particularlynitrogenoxides - NOx) emitted by some electric generating facilities. In a supplementary action, 12 states petitioned EPA under Section 126 of the CAA, concerninginterstate pollution, alleging that NOx originating in upwind states prevented their attainment of ozone standards. An EPAOffice of Enforcement & Compliance Assurance audit of New Source Review (NSR) applications requiredunderprovisions of the Clean Air Act (CAA) that began in late 1996 was the precursor to the enforcement initiative; itled inNovember 1999 to lawsuits against seven utilities in the Midwest and South and an administrative order against theTennessee Valley Authority alleging violations of NSR requirements of the CAA. (1)
The first two initiatives, the Ozone Transport Rule and the Section 126 petitions, are related to each other substantively. Based on the eight petitions EPA has ruled on, EPA's Section 126 determinations wouldinvolvea subset of the NOx SIP Call's 19 states - 12 states and the District of Columbia. Of particular interest is an EPA recommendation thata newrulemaking be commenced on the definition of "routine maintenance," a key point of contention in the abovelawsuits. Concerned about the piecemeal nature of these initiatives, some in Congress have been workingoncomprehensive, multi-pollutant alternative strategies to reduce emissions. In June 2002, the Senate EnvironmentandPublic Works Committee reported out S. 556 - a comprehensive, multi-pollutant bill that would incorporatemarket-oriented mechanisms to control NOx, SO2, and CO2, and tonnage limitations on Hg.
Since the mid-1990s, EPA has initiated actions resulting in regulatory mandatesand enforcement actions directed primarily at coal-fired electric generating utilities. These actions would, ifimplemented,substantially reduce air pollutants, particularly nitrogen oxides (NOx). These initiatives include the OzoneTransport Rule(also called the NOx SIP Call); a set of "Section 126 petitions" in which 12 states allege under Section 126 of theClean AirAct (CAA) that pollutants originating in upwind states prevent their attainment of clean air standards; and a set ofenforcement actions based on New Source Review (NSR) requirements of the CAA that have resulted in lawsuitsagainstseveral utilities and an administrative order against the Tennessee Valley Authority. Although these are separateinitiatives,they are related in that each ultimately focuses on emissions from utilities in the Midwest and South. As of January22,2001, the EPA has declared 11 states and the District of Columbia as failing to submit revised SIPs required undertheOzone Transport Rule; the EPA has approved four section 126 petitions; and two of the NSR lawsuits have resultedinconsent decrees (Tampa Electric Co. and PSEG), and two others have been settled in principle (Virginia Power andCinergy). In June 2002, the Bush Administration recommended new rulemaking be commenced on the definitionof"routine maintenance": a key point of contention in the lawsuits. Legislative activity focuses on multi-pollutantstrategiesas an alternative to these piecemeal initiatives. In June 2002, the Senate Environment and Public Works Committeereported out S. 556 - a comprehensive, multi-pollutant reduction bill. This report will be updated as eventswarrant.