The Independent Regulatory Review Commission voted 3 to 2 this week to approve a final regulation to reduce mercury emissions from coal-fired power plants proposed by the Department of Environmental Protection, setting the stage for additional review of the regulation by the General Assembly.

In response to a question from IRRC Commissioner Arthur Coccodrilli, however, DEP Secretary Kathleen McGinty said for the first time she would have no hesitation supporting a labor-business coalition proposal to reduce mercury emissions by 90 percent by 2015 on every power plant in Pennsylvania and allow interstate trading of emission allowances to meet the additional mercury reductions needed to comply with the overall federal mercury emissions cap, if the plan could be approved by the U.S. Environmental Protection Agency.

Secretary McGinty said she had indications from EPA they would not approve a plan that limited the trading of allowances, but said Pennsylvania could adopt a proposal that limited the pool of allowances to be traded.

Former DEP Chief Counsel Terry Bossert, offering comments on behalf of PPL, agreed the details of the labor-business coalition proposal in fact limited the pool of allowances and was not prohibited by EPA’s regulation or federal law.

Secretary McGinty’s commitment to support the compromise proposal and to come back later to amend the regulation if EPA approves, satisfied Commission Coccodrillli who then voted in favor of the regulation.

Secretary McGinty gave no timetable for seeking EPA approval of the compromise approach.

“This is a landmark victory for environmental protection and public health in Pennsylvania,” Gov. Rendell said. “We cannot accept that our state is laden with more toxic mercury pollution than nearly anywhere else in the nation and do nothing about it. The state-specific plan will change that by keeping our residents safe and the environment clean, and enhancing efforts to attract new investment to our commonwealth with the promise of a higher quality of life.”

Reacting to the IRRC approval of DEP’s regulation, Douglas L. Biden, President of the Electric Power Generating Association said, “EPGA is disappointed in the IRRC's approval of the DEP mercury reduction plan because we do not believe it serves the best interests of Pennsylvania in terms of jobs, the cost of electricity or electric reliability.

“The issue was not whether to reduce mercury emissions, but how to do it.

“A labor-business coalition proposed a bipartisan alternative that goes beyond the federal Clean Air Mercury Rule by requiring the installation of state-recommended mercury emissions control technology on every coal-fired power plant in Pennsylvania to reduce emissions by 80 percent by 2010 and 90 percent by 2015; the same deadlines and reductions required by DEP.

“Any further reductions required to meet the more stringent federal mercury emissions cap could then be achieved through market-based emissions allowance trading, similar to the allowance pool created by DEP to make these additional reductions.

“Compared to the DEP rule, the labor-business alternative would cost significantly less, threaten fewer jobs, and better position Pennsylvania to attract future clean coal generating capacity to meet growing electricity demand, without any difference in environmental impact to the state.”

For more information on reducing mercury emissions from power plants, visit www.PaEnergyNews.com .

NewsClips: Stiff State Mercury Rules OK’d

Regulatory Panel OKs Mercury Measure

Mercury Cuts at PA Power Plants Clear Major Hurdle

State OKs tough Rules on Emission of Mercury

Plan for Big Mercury Cuts Advances

Issue Notebook: PA Mercury Emissions Update

11/17/2006