Oklahoma ready to fight EPA regulations on regional haze

Dec 01 - The Daily Oklahoman

State officials, utility companies and some of their customers appear to be poised to fight federal regulations that could send electricity rates skyrocketing.

Oklahoma Department of Environmental Quality Director Steve Thompson said officials are not optimistic the U.S. Environmental Protection Agency will approve the state's plan to reduce emissions that affect visibility in federal wildlife areas.

"I wouldn't bet the farm on it," Thompson said Tuesday at an Oklahoma Corporation Commission meeting. "Every indication that we've had ... is they're not going to accept it."

He said a decision could come as soon as next month.

The portion of the Clean Air Act dealing with regional haze focuses mostly on reducing emissions from coal-fired power plants, officials said. It is expected to affect six plants in Oklahoma: three owned by Oklahoma Gas and Electric Co. and three owned by Public Service Co. of Oklahoma.

Oklahoma officials have proposed the continued use of low-sulfur coal and an eventual conversion to natural gas to limit emissions, rather than the expensive scrubber technology apparently favored by the EPA.

Thompson said utility companies are allowed to consider economics since regional haze is an issue of aesthetics, not health.

DEQ analyzed cost information on sulfur scrubbers before agreeing with utility companies that the technology was not cost effective, he said.

Analysis by the Oklahoma Industrial Energy Consumers indicates electricity rates for OG&E customers will jump more than 15 percent if the company is forced to install scrubbers.

An OG&E representative estimated such technology could cost up to $1.5 billion, with an additional $150 million a year for operations and maintenance.

OEIC attorney Tom Schroedter said the jump in energy costs could result in job losses and undermine the competitiveness of state-based businesses.

"We simply can't afford to do that," he said.

Schroedter said the plan submitted by DEQ is a sound one.

"That's the answer here," he said. "That's what Oklahoma needs to stand up for."

Schroedter encouraged state agencies to submit comments on the EPA regulations if the state plan is rejected and pursue litigation if necessary.

Assistant Attorney General Bill Humes said he has not discussed the issue with Attorney General-elect Scott Pruitt, but he is willing to recommend doing whatever is necessary to uphold the state plan.

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