Study says EPANOx proposalwould hike rates

Issue 5 and Volume 100.

Study says EPANOx proposalwould hike rates

Utilities and energy-consuming industries would spend up to $27 billion annually to comply with the U.S. Environmental Protection Agency`s (EPA) proposed NOx controls, which exceed Clean Air Act requirements, according to a new study.

The government is encouraging 37 states to adopt strict emission controls, similar to those mandated last year by the Ozone Transport Commission for 12 northeastern states, with NOx reductions of up to 75 percent.

The 37 states, all east of the Rocky Mountains, are being targeted by the EPA for costly new emission controls in an effort to reduce ground-level ozone from a wide-range of industrial sources.

The study, “At What Cost? Manufacturing Employment Impacts from Higher Electricity Prices,” suggests that the EPA proposal would cause significant capital investment, boost electricity rates and raise production costs, which could reduce manufacturing jobs by as many as 400,000 workers.

The study, by Energy Ventures Analysis of Arlington, Va., also found that under the proposal: utilities would have to spendbetween $18 billion and $27 billion annually in capital investment costs for NOx pollution-control equipment; utilities would also be required to spend between $4 billion and $5.5 billion in annual compliance costs for the seasonal NOx program proposal; other industries would spend between $400 million and $1 billion annually in compliance costs.

The emission reductions called for by the EPA are trivial compared to those already required by the Clean Air Act Amendments and would add little to efforts to clear urban skies, according to the study.