PNM Resources (NYSE: PNM) said its New Mexico utility, PNM, received a 45-day stay from the U.S. Environmental Protection Agency in order to address regional haze at the San Juan Generating Station under the Clean Air Act. The stay is set to expire on November 29.

The administrative stay is expected to provide additional time to consider an alternative between the New Mexico Environment Department and the EPA’s plans, but does not extend the September 2016 compliance date of the federal implementation plan. The federally mandated plan includes a requirement to install selective catalytic reduction (SCR) technology on all four units at the coal-fired power plant. PNM is finalizing an agreement with an engineering, procurement and construction (EPC) contractor to install the SCR units. The contract will include termination provisions should SCR technology prove to be unnecessary in the future.

“We are encouraged to hear that the EPA is interested in considering the recently proposed state alternative,” said Pat Collawn, chairman, president and CEO of PNM Resources. “We have supported efforts over the past 90 days to explore alternatives that could provide environmental benefits, while also reducing costs for customers. We think the state alternative offers a potential way forward to achieving this goal.”

Two different plans were developed for the state to meet regional haze requirements of the CAA: One by the state and the other by the EPA. Without any approval for an alternative plan, PNM must comply with the federal plan, which is estimated to cost $750 million.

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