Washington (Platts)--17Dec2009/515 pm EST/2215 GMT

The US Environmental Protection Agency said Thursday it will delay "for a short period" its proposed regulations for disposal of coal ash from power plants. The rules were expected to come out by the end of the year.

In delaying the proposed rules, EPA cited the complexity of the analysis that it is performing on the issue, saying the deadline that EPA Administrator Lisa Jackson announced earlier will be extended.

The agency added that it is "still actively clarifying and refining parts of the proposal."

Coal-ash disposal came to the nation's attention last year after 5.4 million cubic yards of coal ash spilled over 300 acres in Tennessee and into the Emory River when a dike failed at Tennessee Valley Authority's Kingston coal-fired plant. Cleanup of that spill is expected to cost up to $1 billion.

After the disaster, EPA began inspecting hundreds of coal ash disposal facilities across the US and environmental groups began calling for tougher regulations on coal ash disposal.

The electricity industry and industries that recycle coal ash are waiting to see whether EPA deems coal ash a non-hazardous substance. If so, it could be used in products such as road bedding and home construction material and open up commercial uses of the post-combustion material.

--Jason Fordney, jason_fordney@platts.com