Utility MACT Rule

Statement

Date: Sept. 22, 2011
Issues: Environment

The Utility MACT rule is aimed at the electric utility industry and would establish new standards to limit the amount of mercury, acid gases, and non-mercury metals power plants can release into the air. If implemented, it is anticipated to affect at least 525 coal and oil-fired power plants throughout the United States, and according to the EPA's own numbers is expected to cost $10.9 billion per year. This number makes it one of the most expensive regulations in the history of the EPA. And even more shocking, that number doesn't include any indirect costs -- such as the expected price increase in consumer electricity and natural gas -- associated with it. Many analyses have estimated its total cost is closer to $100 billion.

This high cost is a result of the expensive technology required to comply with the new regulation. While many power plants are beginning to slowly make these changes to their operation, the EPA's regulation would require they come in full compliance by 2015. And the EPA imposed this extremely costly regulation without a single action by Congress.


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