Multi-Industry Letter to the President regarding the Utility MACT Rule

Letters
December 9, 2011

The President The White House 1600 Pennsylvania Ave., N.W. Washington, DC 20500 Dear Mr. President: The organizations listed below share a common belief that affordable and reliable electricity is critical to our economic growth and job creation. We also share a deep concern that the Utility MACT rule, due to be issued by the Environmental Protection Agency (EPA) on December 16, 2011 could cause significant electricity reliability constraints that would have a ripple effect through our fragile economy, hurting businesses of all sizes. We urge you, as President, to provide the leadership necessary to ensure that electric reliability risks of the final rule can be managed effectively. Reasonable regulation and regulatory certainty are essential for businesses to grow and prosper. By contrast, regulatory uncertainty is a deterrent to putting Americans back to work, particularly for small businesses. The potential costs of the UtilityMACT rule could have a major impact on job creation and consumer demand for our products and services. It is clear that some utilities will need additional time to comply with this rule beyond the three or four years allowed under the Clean Air Act. Utilities must replace power plants, install compliance equipment and build new natural gas pipelines and transmission lines. This is going to cost tens of billions of dollars and require a reasonable number of years for a smooth transition to a cleaner generating fleet. If the final rule fails to recognize these realities, our entire economy will suffer. The organizations responsible for the reliability of the electric grid—including the North American Electric Reliability Corporation and regional transmission organizations—have expressed serious concerns about the impact of the Utility MACT rule on reliability as electric utilities replace power plants and install controls on so many plants during the same short time period. The members of the Federal Energy Regulatory Commission (FERC), which is ultimately responsible for grid reliability, stated as recently as last Wednesday, that utilities should not be forced to choose between reliable electric service and meeting environmental requirements. While we agree with EPA’s proposal to provide an additional year to some power plants for the installation of controls, we believe it should be a categorical extension of time. We also urge you to delegate your presidential exemption authority under the Clean Air Act to provide additional time as needed to those facilities that are making good-faith efforts to achieve compliance. We believe the goals of protecting public health and the environment and maintaining a reliable electric system can both be met through an orderly and realistic transition period under the Utility MACT rule. Achieving these goals will require your presidential leadership, and we urge you to act. Respectfully yours, American Coatings Association American Council of Engineering Companies American Forest & Paper Association American Foundry Society American Frozen Food Institute American Gas Association American Iron & Steel Institute Arizona Electric Power Cooperative Arkansas State Chamber of Commerce Associated Builders & Contractors, Inc. Associated Builders & Contractors, Inc. - Illinois Chapter Associated Builders & Contractors, Inc. - Rhode Island Chapter Associated Builders & Contractors, Inc. - Nevada Chapter Associated Electric Cooperative (MO) Associated Equipment Distributors Associated General Contractors of America Associated Industries of Arkansas Association of American Railroads Basin Electric Power Cooperative (ND) Bay City Chamber of Commerce & Agriculture (TX) Beatrice Area Chamber of Commerce (NE) Big Rivers Electric Corp (KY) Birmingham Business Alliance Bismarck-Mandan Chamber of Commerce Brazos Electric Power Cooperative (TX) Bristol Chamber of Commerce Burlington/West Burlington Area Chamber of Commerce (IA) Burnsville Chamber of Commerce (MN) Business Council of Alabama Business Roundtable Canton Regional Chamber of Commerce (OH) Catawba County Chamber of Commerce (NC) Center for Regulatory Effectiveness Central Electric Power Cooperative (MO) Central Electric Power Cooperative (SC) Central Montana Electric Power Cooperative Colorado Association of Commerce & Industry Columbus Area Chamber of Commerce Corn Belt Power Cooperative (IA) Dakota County Regional Chamber of Commerce East Kentucky Power Cooperative East River Power Cooperative (SD) Eau Claire Area Chamber of Commerce (WI) Edison Electric Institute Elk River Area Chamber of Commerce (MN) Fargo Moorhead West Fargo Chamber of Commerce Fentress County Chamber of Commerce (TN) Fountain Hills Chamber of Commerce (AZ) Fullerton Chamber of Commerce (CA) Georgia Chamber of Commerce Georgia Transmission Corporation Grand Rapids Area Chamber of Commerce Grants Pass & Josephine County Chamber of Commerce (OR) Great River Energy (MN) Greater Centralia Illinois Chamber of Commerce Greater Cleveland Partnership Greater Irving-Las Colinas Chamber of Commerce Greater Lexington Chamber of Commerce Greater Omaha Chamber Greater Pittsburgh Chamber of Commerce Greater Raleigh Chamber of Commerce Greater Sandoval County Chamber of Commerce (NM) Gwinnett Chamber of Commerce (GA) Hampton Roads Chamber of Commerce (VA) Hoosier Energy Rural Electric Cooperative (IN) Indiana Cast Metals Association Indiana Chamber of Commerce International Falls Area Chamber of Commerce (MN) Johnson City Chamber of Commerce (TN) Joliet Chamber of Commerce Kalamazoo Regional Chamber of Commerce (MI) Kankakee Regional Chamber of Commerce (IL) Kansas Chamber of Commerce Kansas Electric Power Cooperative Kentucky Chamber of Commerce Lincoln/Logan County Chamber of Commerce (IL) Louisiana Association of Business & Industry Marshalltown Area Chamber of Commerce (IA) Metalcasters of Minnesota Metals Service Center Institute Midwest Power Coalition Minnesota Chamber of Commerce Minnkota Power Cooperative (ND) Mississippi Economic Council Mobile Area Chamber of Commerce (AL) Monona Chamber of Commerce (WI) Morgantown Area Chamber of Commerce (WV) National Association of Chemical Distributors National Association of Manufacturers National Black Chamber of Commerce National Electrical Manufacturers Association National Oilseed Processors Association National Restaurant Association National Rural Electric Cooperative Association Nebraska Chamber of Commerce & Industry Nebraska Electric G&T Cooperative Non-Ferrous Founders’ Society North American Die Casting Association North American Equipment Dealers Association North Carolina Chamber of Commerce North Carolina Electric Membership Corporation North Dakota Chamber of Commerce Northern Kentucky Chamber of Commerce Northwest Electric Power Cooperative (MO) Nuclear Energy Institute Oglethorpe Power Cooperative (GA) Ohio Cast Metals Association Ohio Chamber of Commerce Old Dominion Electric Cooperative (VA) One Southern Indiana Oskaloosa Area Chamber & Development Group (IA) Pacific Northwest Generating Cooperative (OR) Pennsylvania Foundry Association Portland Cement Association PowerSouth Energy Cooperative (AL) Prince William Chamber of Commerce (VA) Rushmore Electric Power Cooperative (SD) San Miguel Electric Cooperative (TX) Seminole Electric Cooperative (FL) South Carolina Chamber of Commerce South Dakota Chamber of Commerce & Industry South Mississippi Electric Power Association Southern Illinois Power Cooperative Southern Wayne County Regional Chamber (MI) Tennessee Chamber of Commerce & Industry Texas Association of Business Texas Cast Metals Association Tex-La Electric Cooperative Tucson Metropolitan Chamber of Commerce U.S. Chamber of Commerce Wabash Valley Power Association (IN) West Virginia Chamber of Commerce Western Farmers Electric Cooperative (OK) Wisconsin Cast Metals Association Wisconsin Manufacturers & Commerce

cc: The Members of the United States Congress