NY acid rain rules seen tightening energy supplies
Date: 30-May-02
Country: USA
At a public review and comment period on the proposed regulations, the Business Council of New York State Inc. urged the state Department of Environmental Conservation (DEC) to soften the state's proposed rules in line with federal laws.
Gov. George Pataki released in February draft regulations to cut harmful emissions, which cause acid rain, from electric generators in New York. The plan is aimed at protecting critical natural resources, such as the Adirondack and Catskill mountains.
"DEC has significantly underestimated the downside risks to the state's electric power network," said Ken Pokalsky, director of environmental and economic development programs at the business council.
Pete Constantakes, a spokesman for the DEC, said, "We've been working with utilities and the business community and do not believe our plan threatens the electric supply, but will instead promote our natural resources."
The reductions would be phased in over a three-year period beginning in January 2005, and would implement year-round reductions in nitrogen oxide emission beginning Oct. 1, 2004.
DEC's impact assessment suggests an average statewide increase in wholesale electric prices of 5.4 percent, the council noted, with price hikes higher in certain "load pockets" such as the city of Rochester and Long Island.
The council said DEC estimates may be low because the state assumed significant additional generating capacity would be on line by 2005.
"With the continued slow pace of project approvals, and recent cancellations and delays of previously announced projects, we are unlikely to come close to the projected increase in capacity prior to the effective date of this proposal," Pokalsky said.
National energy officials have pointed to the state, especially in New York City and Long Island, as facing some of the tightest energy supplies in the United States.
Power plant construction in New York has been slowed by local opposition and a slump in energy demand linked to the economic slowdown and Sept. 11 attacks.
Moreover, the Council found delays in buying and installing new pollution control equipment, and decisions to cut operation at some older plants, will further reduce power supplies.
The Public Policy Institute, the Council's research affiliate, said in a study in February that New York must add a dozen new power plants with at least 9,200 megawatts of generating capacity in the next five years to meet the state's growing energy demand.
One megawatt of energy is enough to run 1,000 homes.
ENVIRONMENTAL IMPACT
The proposed regulations would require major power plants in the state to reduce sulfur dioxide emissions, which cause acid rain, to 50 percent of federally allowable levels.
In addition, the regulations would make year round limits on nitrogen oxide emissions, linked to urban smog, which now only apply during the summer.
Phase II of the Federal Clean Air Act requires a 50 percent reduction in sulfur dioxide and a 35 percent reduction in nitrogen oxide emissions from power plants by 2000.
The governor's proposal would reduce New York's sulfur dioxide emissions by 130,000 tons and nitrogen oxide emissions by 20,000 tons annually.
But the council said that the proposed regulations would provide only limited environmental benefits to the state since less than 20 percent of emission causing acid rain in New York comes from in-state sources.
"Since less than 20 percent of emission causing acid (rain) in New York comes from in-state sources, a national or regional program would be a far better approach," Pokalsky said.
Recognizing the increased attention in Washington to national emission-reduction strategies, the council urged the state to put a sunset provision that would defer to any new federal acid rain control requirements in its final rule.
"We are pleased by clean air proposals by President George Bush and will be open to consistency with any federal law in the future. But