Ige urges EPA to delay air quality regulations

Nov 15 - Honolulu Star-Advertiser (HI)

Gov. David Ige is asking the U.S. Environmental Protection Agency to postpone or waive new regulations that restrict the amount of mercury and other toxic pollutants that Hawaii's power plants can release into the air, arguing that the rules will distract from Hawaii's push to convert to clean energy.

The Mercury and Air Toxic Standards are expected to take effect in April, though a June U.S. Supreme Court ruling raises questions about whether the EPA can legally make Hawaii companies comply with the national standards without first conducting a cost analysis for the state.

"I'm seeking flexibility from the federal government in dealing with the MATS rule because I'm committed to 100 percent (renewable energy)," Ige said during an interview with the Honolulu Star-Advertiser last month. "My pitch to the federal regulators is I believe we get more value by directing all of the investment in renewables. And as we increase the use of renewables, we burn less oil and therefore we emit less emissions, period."

Ige signed legislation into law this year that requires Hawaii's electric utilities to convert to 100 percent renewable energy by 2045. He said that requiring Hawaii's utilities to comply with the new air emission rules would divert resources from needed investments in clean energy infrastructure.

"I don't want distraction from the endgame," Ige said.

As of last year, 21 percent of Hawaiian Electric Co.'s electricity came from renewables, including solar, wind, geothermal, solid waste, hydro and biofuels, according to information from the utility.

The new EPA rules, which curb emissions for oil- and coal-fired power plants, impact a total of a dozen HECO -owned generating units at Kahe Power Plant and Waiau Power Plant on Oahu .

The new rules would require minimal upgrades to power plants, HECO spokesman Peter Rosegg said by email.

HECO had estimated that it would cost about $1.4 billion to install air quality controls at its power plants to comply with MATS, as well as other air quality rules that are expected to go into effect in 2025, according to a 2013 analysis done by the utility.

Subsequently, however, HECO found that switching to a cleaner-burning fuel would satisfy the emissions requirements and be a lot less costly. The utility estimates that the MATS-compliant fuel could add $2 to $3 to the monthly electricity bill of a typical residential customer. HECO has already contracted with Chevron to supply the fuel, if needed, according to state regulatory filings.

The Kauai Island Utility Cooperative isn't affected by the tighter emissions standards, according to Jim Kelly , a spokesman for the utility. KIUC's largest unit is a gas turbine generator, which isn't subject to the tighter emissions standards, while the utility's other units are too small to be covered by MATS.

The air quality standards have been an important part of the Obama administration's environmental agenda. The EPA estimates that it will cost utilities and power plants throughout the country about $9.6 billion annually to comply with the new rules, but result in $37 billion to $90 billion a year in health benefits.

Agency officials say that nationally, air controls are expected to prevent 4,200 to 11,000 premature deaths, 4,700 heart attacks and 130,000 asthma attacks annually.

The standards reduce the release of metals, including mercury, arsenic, chromium and nickel, as well as acid gases and particulates, into the atmosphere.

Of particular concern to health officials is the release of mercury, which is converted to methylmercury by microorgansims when it falls into streams, lakes and oceans. Methylmercury, a highly toxic form of the metal, builds up in fish and has been linked to developmental delays in babies and young children, according to the EPA .

Other metals, including arsenic, chromium and nickel, have been linked to cancer, while particulates can contribute to breathing problems.

The new rules officially went into effect in April. However, dozens of power plants and utilities throughout the country, including HECO , applied for and were granted one-year extensions.

The air emission standards were dealt a blow by the Supreme Court in June, however, raising questions about whether Hawaii will even have to comply with the new rules.

In a 5-4 decision, the court ruled that the EPA hadn't taken into consideration the cost for power companies to comply with the air standards when they were developing the rules.

Writing for the majority, Justice Antonin Scalia wrote, "It is not rational, nevermind 'appropriate,' to impose billions of dollars in economic costs in return for a few dollars in health or environmental benefits."

Industry groups and 18 states, not including Hawaii , had challenged the EPA's decision to regulate air emissions.

The case is now in the U.S. Court of Appeals for the District of Columbia Circuit .

The EPA says it has done a cost analysis for the contiguous states, though it left out Hawaii , Alaska and the territories. Agency officials say their focus was on coal-burning plants. Hawaii is largely dependent on oil for electricity generation.

Even though a cost analysis wasn't specifically done for Hawaii , an EPA representative said the agency contends that the emission standards still apply to the state.

The EPA wouldn't say whether it's willing to grant Hawaii an exemption from the rules or postpone their implementation, as Ige has requested.

"Just as we work with any state and its sources to explore their options related to compliance with EPA rule-makings, we are doing the same with sources in Hawaii ," the EPA said by email.

Ige criticized the EPA for failing to take Hawaii into account when conducting its analysis, saying that most of the EPA's conclusions apply to power plants on the mainland.

"You guys are assuming that one size fits all and I'm just saying that Hawaii is different for a lot of different reasons," Ige said. "But part of the reason is that we are 2,500 miles away from any other state. Plus, there is more pollution generated from the island of Hawaii than ever comes from the generating units here. It's probably 10 to 1."

Hawaii island's Kilauea Volcano emits sulfur dioxide gas and other pollutants that cause vog and can contribute to respiratory problems.

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