To implement the act, EPA was directed to issue effluent limitation guidelines and standards, or technology-based regulations, for industrial dischargers. Steam Electric Power Industry ELG

EPA initially promulgated effluent limitation guidelines for the steam electric industry in 1974 and issued revised standards in 1982. Broadly speaking, two factors have altered existing wastestreams or created new wastestreams at many power plants since promulgation of the 1982 power plant ELG. The first is the development of new technologies for generating electric power, such as coal gasification. The second, a result of federal and state requirements, is the widespread implementation of air pollution controls to reduce emissions of hazardous air pollutants and acid gases (e.g., flue gas desulfurization [FGD], selective catalytic reduction [SCR], and flue gas mercury controls [FGMC]). Consequently, each year the pollutant discharges from this industry are increasing in volume, with additional chemical constituents. While scrubbers dramatically reduce emissions of harmful pollutants into the air, some create a significant liquid waste stream (especially wet scrubbers). EPA believes that many current CWA permits for power plants do not fully address potential water quality impacts of these discharges through appropriate pollutant limits and monitoring and reporting requirements. Coal- and petroleum-coke fired plants comprise 44% of the 1,080 plants subject to the ELG. A 2014 rule under the Resource Conservation and Recovery Act (RCRA) on managing coal combustion residuals (CCR) also relates to the CWA ELG rule, because both statutes address coal combustion waste such as coal ash that is generated by electric utilities and independent power producers and is released to the environment. The scope of the CWA ELG and RCRA rule differ. While both address disposal of CCR in surface impoundments at power plants, only the RCRA rule regulates disposal of CCRs in landfills. In the final CCR rule, EPA extended by one year, compared to the proposed rule, that rule's deadline for owners or operators of covered facilities to prepare a closure plan. This would give owners or operators 24 months after publication of the CCR rule, or slightly more than 6 months after the effective date of the revised ELG, to understand the requirements of both regulations and to make the appropriate business decisions and prepare closure and post-closure plans. Costs and Benefits of the ELG

		Compliance Costs

EPA estimates that the final rule will result in annualized pre-tax compliance costs for industry of $496.2 million and after-tax costs of $339.6 million. EPA projects that 88% of the plants subject to the rule will incur zero compliance costs, because they already have implemented processes or technologies that are the basis for the rule. EPA projects that the final rule will have small effects on the electricity market in 2030, both nationally and regionally, despite the higher compliance costs. It should be noted that the CWA does not require that the benefits of regulation exceed or even equal the costs. Many in industry are concerned that the CWA rule imposes new requirements and compliance timelines at the same time that power plants are implementing other costly and burdensome EPA rules. One issue concerns impacts of the rule on small entities, including small businesses and small governmental jurisdictions. Environmental advocates view the ELG differently from industry and reportedly are generally satisfied with the final rule, but expressed concerns that parts of the rule were not stringent enough. Conclusion

As noted in the introduction to this report, EPA rules affecting steam electric power plants have been scrutinized and challenged based on their stringency, feasibility, and projected compliance costs. Congressional interest has been evident in legislation that has been introduced to alter the direction and substance of some of EPA's regulatory actions and initiatives. To this point, discussion of the power plant ELG has centered on the administrative proceedings at EPA and has not drawn significant attention of lawmakers. Amounts released to surface waters from impoundment overflow or discharge totaled 157 billion gallons in 2009. Thus, these systems are relatively new to the steam electric industry.
To implement the Clean Water Act (CWA), the Environmental Protection Agency (EPA) issues effluent limitation guidelines (ELG), or technology-based standards, for categories of industrial dischargers. These standards are implemented through permits issued by states or EPA to individual facilities. In November 2015, EPA promulgated revised effluent limitations for the steam electric power industry to replace rules that were issued in 1982. The new rule was effective on January 4, 2016.
Two factors have altered existing wastestreams or created new wastestreams from many power plants since promulgation of the 1982 ELG. These factors are the development of new technologies for generating electric power, such as coal gasification, and, as a result of federal and state requirements, the widespread implementation of air pollution controls to reduce emissions of hazardous air pollutants and acid gases, such as flue gas desulfurization (scrubber) systems. While scrubbers dramatically reduce emissions of harmful pollutants into the air, some create a significant liquid waste stream. As a result, pollutant discharges from this industry to surface waters have increased in volume, with additional chemical constituents, and EPA believes that many current CWA permits for power plants do not fully address potential water quality impacts of these discharges.
Based on studies of the industry and to settle litigation brought by environmental advocates, EPA proposed a rule in April 2013 to revise the steam electric ELG and issued a final rule in November 2015. A total of 1,080 steam electric plants that burn fossil fuels and whose primary purpose is generating electricity are subject to the ELG. Only a subset of these plants is likely to incur compliance costs as a result of the 2015 rule—only 133—because a large portion of the industry has already implemented processes or technologies that are required by the rule. All of the plants that are expected to incur compliance costs are coal- or petroleum coke-fired. EPA estimates that the annualized compliance costs for the rule are $496 million pre-tax and $340 million after-tax, costs that the agency believes are economically achievable and would have minimal effects on the electricity market, both nationally and regionally. The rule also would reduce pollutant discharges by 385 million pounds annually and reduce water use by 57 billion gallons per year. Estimated costs of the rule exceed estimates of monetized benefits; however, the CWA does not require that the benefits of regulation exceed or even equal the costs.
An EPA rule under the Resource Conservation and Recovery Act (RCRA) on managing coal combustion residuals (CCR) also relates to the CWA ELG rule, because both statutes address coal ash that is generated by power plants and released to the environment. The scope of the CWA and RCRA rules differ. While both address disposal of CCR in surface impoundments at power plants, only the RCRA rule regulates disposal of CCRs in landfills. To coordinate the two rules, in the final CCR rule, EPA extended by one year that rule's deadline for owners or operators of covered facilities to prepare a closure plan. This would give owners or operators 24 months after publication of the CCR rule, or slightly more than 6 months after the effective date of the revised ELG, to understand the requirements of both regulations and to make the appropriate business decisions and prepare closure and post-closure plans.
Many in industry are concerned that the 2015 rule will impose new requirements and compliance timelines at the same time that power plants are implementing other EPA rules. One issue concerns impacts of the proposal on small entities, including small businesses and small governmental jurisdictions. Environmental advocates view the ELG differently from industry and reportedly are generally satisfied with the final rule, but many do have concerns with issues such as compliance deadlines in the rule. Both industry groups and environmental groups have challenged the rule in federal court.
EPA rules affecting steam electric power plants have been scrutinized and criticized based on their stringency, feasibility, and projected compliance costs. Congressional interest has been evident in legislation to alter the direction and substance of some of EPA's regulatory actions and initiatives. To this point, discussion of the power plant ELG has centered on the administrative proceedings at EPA and has not drawn specific attention of lawmakers.