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    1 Center or American Progress |They Fought th e Law

    They Fought the Law

    Big Utilities Sue the EPA and Lobby the Senateto Stop Public Health Protection

    Daniel J. Weiss and Jackie Weidman June 2012

    wo essenial Environmenal Proecion Agency, or EPA, regulaions o proec chil-

    dren, seniors, he inrm, and ohers rom air polluion are under atack rom he coal

    indusry and many uiliies.

    Las year he EPA issued wo rules ha would reduce smog, acid rain, and airborne oxicchemicals: he Cross-Sae Air Polluion ule and he Mercury and Air oxics Sandards.

    OnJuly 6, 2011, he EPA nalized he Cross-Sae Air Polluion ule o reduce sulur

    dioxide and nirogen oxide polluionwo o he main ingrediens in acid rain and

    smogrom power plans in upwind saes ha were polluing downwind saes.An

    ineracive EPA map demonsraes ha polluion doesn sop a sae borders.

    Ten, on December 16, 2011, he EPA nalized he rs sandards o reduce mercury,

    arsenic, lead, and oher oxic air polluion 21 years aer conrols on such polluion

    became law.

    oday more han 130 coal companies, elecric uiliies, rade associaions, oher pollu-

    ing indusries, and saes are suing he EPA in ederal cour o oblierae, undermine, or

    delay hese essenial healh proecion sandards. A parallel eor is underway o block

    he mercury reducion rule in he Senae, which is scheduled o voe on i his week.

    This CAP investigation found that these utilities were responsible for 33,000 pounds of

    mercury and 6.5 billion pounds of smog and acid rain pollution in 2010 alone.

    http://www.epa.gov/airtransport/http://www.epa.gov/mats/actions.htmlhttp://www.epa.gov/airtransport/http://www.epa.gov/crossstaterule/whereyoulive.htmlhttp://www.epa.gov/crossstaterule/whereyoulive.htmlhttp://www.nytimes.com/2011/12/22/opinion/toward-healthier-air.html?_r=1&ref=opinionhttp://epw.senate.gov/public/index.cfm?FuseAction=Minority.PressReleases&ContentRecord_id=ec71376e-802a-23ad-415f-c962d01c50f6http://epw.senate.gov/public/index.cfm?FuseAction=Minority.PressReleases&ContentRecord_id=ec71376e-802a-23ad-415f-c962d01c50f6http://www.nytimes.com/2011/12/22/opinion/toward-healthier-air.html?_r=1&ref=opinionhttp://www.epa.gov/crossstaterule/whereyoulive.htmlhttp://www.epa.gov/crossstaterule/whereyoulive.htmlhttp://www.epa.gov/airtransport/http://www.epa.gov/mats/actions.htmlhttp://www.epa.gov/airtransport/
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    2 Center or American Progress |They Fought th e Law

    Tis brie akes a closer look a hese uiliies lawsuis agains he EPA. Te paper

    explains he public healh and economic benes o he rules and uiliy companieseors o block hem. We also look a how heavily hese companies are spending o

    convince lawmakers o block he rules. Te cours and Congress should suppor public

    healh proecions and jus say no o hese diry eors.

    Two clean air rules will prevent up to 45,000 premature deaths annually

    Our reliance on coal o generae elecriciy inics huge, hidden healh coss on American

    amilies and he economy. Tese exernaliies come rom he emissions produced when

    coal is burned or power. Te emissions conain known human hazards such as mercury,lead, arsenic, acid gases, sulur dioxide, and nirogen oxides. Exposure o or inhalaion o

    hese conaminans or he smog or acid rain ha hey orm can cause premaure deahs,

    ashma atacks, birh deecs, learning disabiliies, and oher serious healh problems.

    Tose on he receiving end o hese polluans bear he healh and economic coss insead

    o he companies ha generae he elecriciy. Te Naional esearch Council esimaes ha

    [nonclimae] exernal damages rom sulur dioxide, nirogen oxides, and pariculae mater

    creaed by burning coal a 406 coal-red power plans [cos] $62 billion annually.

    Forunaely, he Clean Air Ac o 1990 gives he Environmenal Proecion Agency

    he ools o proec Americans rom hese deadly air polluansnamely issuing rules

    requiring polluing companies o reduce hem.

    Te Cross-Sae Air Polluion ule is designed o proec downwind saes rom acid

    rain and smog polluion rom upwind saes. I requires cus in sulur dioxide and niro-

    gen oxide polluionhe main ingrediens o acid rain and smog. Tis rule will preven

    TABLE 1

    Opposed to cleaner air

    Breakdown o companies and organization suing EPA over

    pollution rules

    States and state agencies 36

    Publicly owned private power companies 34

    Privately owned power companies 11

    Municipally owned power plants and cooperatives 11

    Coal companies (miners, trade associations, and coalitions) 16

    Paper/chemical companies, ood processors, manuacturers 5

    Trade associations and political advocacy groups 19

    Total 132

    Source: Public Access to Court Electronic Records website

    http://www8.nationalacademies.org/onpinews/newsitem.aspx?RecordID=12794http://www.epa.gov/air/caa/http://www.epa.gov/airtransport/http://www.epa.gov/airtransport/http://www.epa.gov/air/caa/http://www8.nationalacademies.org/onpinews/newsitem.aspx?RecordID=12794
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    3 Center or American Progress |They Fought th e Law

    up o 34,000 premaure deahs and avoid 858,000 oher healh problems annually,

    including 400,000 cases o aggravaed ashma. And hese air qualiy improvemens will

    resul in up o $280 billion in annual ne benes.

    Te Mercury and Air oxics Sandards would require seep reducions o mercury, lead,

    arsenic, and oher oxic polluans. Coal-red power plans are he larges human-caused

    source o mercury emissions in he Unied Saes, according o Senae esimony byDr.Jerome Paulson o he American Academy o Pediarics. Tese conaminans are linked o

    birh deecs, brain damage, learning disabiliies, cancer, and oher serious ailmens.

    Mercury is so oxic ha small amouns ound in sh can pass hrough women ha ea hem,

    harming heir children. Fory-eigh saes have issued sh consumpion advisories warning

    pregnan women, nursing mohers, children, and women o a childbearing age o limi or

    avoid consumpion o cerain sh species ha are prone o mercury conaminaion.

    Te EPA predics ha he mercury and air oxics reducionswhich don ake eec

    unil 2015, wih a possible exension o 2016will save 11,000 lives annuallyandpreven more han 100,000 ashma and hear atacks yearly. Tese healh improvemens

    will provide ne economic benes o up o $80 billion annually.

    On op o hese benes, invesmens in he manuacuring, insallaion, and operaion

    o polluion-conrol equipmen o clean up hese polluans will creae jobs. An analysis

    rom he Economic Policy Insiue, or EPI, ound ha he Mercury and Air oxics ule

    will have a posiive ne impac on overall employmen by creaing 49,500 direc jobs

    by 2015. EPI concluded ha by balancing benes o healh agains coss o compli-

    ancehe oxics rule is a clear win or Americans.

    http://www.epa.gov/airtransport/pdfs/FinalRIA.pdfhttp://epw.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=ef33d9ca-b306-4a76-b6d0-12956e850ed8http://epw.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=ef33d9ca-b306-4a76-b6d0-12956e850ed8http://www.epa.gov/mercury/exposure.htmhttp://fishadvisoryonline.epa.gov/General.aspxhttp://fishadvisoryonline.epa.gov/General.aspxhttp://epa.gov/mats/health.htmlhttp://www.epa.gov/ttnecas1/regdata/RIAs/matsriafinal.pdfhttp://www.epi.org/files/2012/ib325.pdfhttp://www.epi.org/files/2012/ib325.pdfhttp://www.epa.gov/ttnecas1/regdata/RIAs/matsriafinal.pdfhttp://epa.gov/mats/health.htmlhttp://fishadvisoryonline.epa.gov/General.aspxhttp://fishadvisoryonline.epa.gov/General.aspxhttp://www.epa.gov/mercury/exposure.htmhttp://epw.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=ef33d9ca-b306-4a76-b6d0-12956e850ed8http://epw.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=ef33d9ca-b306-4a76-b6d0-12956e850ed8http://www.epa.gov/airtransport/pdfs/FinalRIA.pdf
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    Companies sue to block Cross-State Air Pollution Rule

    In response o a lawsui iniiaed by EME Homer Ciy Generaion, L.P. and joined by

    oher companies, he U.S. Cour o Appeals issued a say o emporarily block he

    implemenaion o he Cross-Sae Air Polluion ule on December 30, 2011, jus

    wo days beore i was scheduled o ake eec. Addiionalbries challenging he rules

    were led,which said ha:

    he acceleraed iming and radically alered emissions allocaions mandaed by

    [he rule] do no permi he lead ime needed o respond o his sudden regulaory shi.

    In April 2012 he cour heard oral argumens over challenges o he rules. Te case is onan expedied schedule, meaning a decision is expeced someime his summer. Tis say

    will remain in eec a leas unil his cour rules on he case.

    Challenges to the Mercury and Air Toxics Standards

    Beween February and May o 2012, a number o companies and ineres groups led pei-

    ions o block he Mercury and Air oxics Sandards. Oral argumens are no ye scheduled

    in he case, Whie Sallion Energy Cener v. EPA. Unlike he Cross-Sae Air Polluion ule,

    no say was issued or he mercury rule. Te polluion-reducion requiremens or he mer-

    cury rule do no ake eec unil 2015, so i poses no imminen hrea o he companies.

    Anoher challenge o mercury and air oxic polluion reducions is underway in he

    Senae. Sen. James Inhoe (-OK) led a Congressional eview Ac, or CR, resolu-

    ion, S. J. es. 37, o block he mercury and air oxics sandards. Te Congressional

    eview Ac allows Congress o overurn a major regulaion by passing such a resoluion,

    FIGURE 2

    How the rules will beneit Americans

    Annual health eects avoided ater implementing the Cross State

    and Mercury and Air Toxics pollution reductions

    Health eect Number o cases avoided annually

    Premature death 45,000

    Acute and chronic bronchitis 21,800

    Heart attacks 19,700

    Aggravated asthma 530,000

    Hospital and emergency room visits 24,700

    Restricted activity days (missing work, school) 5,000,000

    Source: EPA Cross-State and Mercury Rule Fact Sheets

    http://www.epa.gov/airtransport/pdfs/CourtDecision.pdfhttp://www.epa.gov/airtransport/pdfs/TRBriefingSchedule.pdfhttp://www.edf.org/sites/default/files/CSAPR-industry-opponents-opening-brief.pdfhttp://www.edf.org/sites/default/files/CSAPR-industry-opponents-opening-brief.pdfhttp://www.cadc.uscourts.gov/internet/sixtyday.nsf/newcalendar?openview&count=1000&date=2012-4-13http://blogs.edf.org/climate411/2012/04/13/court-hears-oral-argument-on-cross-state-air-pollution-rule/http://www.epa.gov/mats/actions.htmlhttp://www.apha.org/NR/rdonlyres/662BDA8D-E28B-4499-A1CF-BF10C4B71185/0/MottoIntervenehealthgroupsMATS.pdfhttp://epw.senate.gov/public/index.cfm?FuseAction=Minority.PressReleases&ContentRecord_id=528e75c1-802a-23ad-4200-a269ed0211cd&IsPrint=truehttp://epw.senate.gov/public/index.cfm?FuseAction=Minority.PressReleases&ContentRecord_id=528e75c1-802a-23ad-4200-a269ed0211cd&IsPrint=truehttp://www.apha.org/NR/rdonlyres/662BDA8D-E28B-4499-A1CF-BF10C4B71185/0/MottoIntervenehealthgroupsMATS.pdfhttp://www.epa.gov/mats/actions.htmlhttp://blogs.edf.org/climate411/2012/04/13/court-hears-oral-argument-on-cross-state-air-pollution-rule/http://www.cadc.uscourts.gov/internet/sixtyday.nsf/newcalendar?openview&count=1000&date=2012-4-13http://www.edf.org/sites/default/files/CSAPR-industry-opponents-opening-brief.pdfhttp://www.edf.org/sites/default/files/CSAPR-industry-opponents-opening-brief.pdfhttp://www.epa.gov/airtransport/pdfs/TRBriefingSchedule.pdfhttp://www.epa.gov/airtransport/pdfs/CourtDecision.pdf
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    hough he presiden mus sign i ino law. A CR resoluion can be brough o he oor

    o he Senae or debae and voe wihou hrea o libuser i 30 senaors co-sponsor i.

    Inhoe has ignored he Naural esources Deense Councils reques o expose he

    diry hiry senaors who signed S. J. es 37 so i could be brough o he Senae oor

    or debae and voe. Keeping hese senaors secre makes i impossible o hold hem

    accounable or atemping o undo proecion rom mercury and air oxic polluion.

    Meanwhile, polluers are escalaing heir lobbying in avor o he Inhoe resoluion. Te

    Naional Associaion o Manuacurers and over 200 oher companies and rade associa-

    ions wroe o and me wih senaors promoing Inhoes Congressional eview Ac.

    AndAmericans or Prosperiyand a new siser super PAC,American Commimen

    unded by oil moguls Charles and David Kochannounced a similar mulimillion-

    dollar campaign o push he CR hrough sae ofce visis, phone calls, and elevision

    ads argeing specic senaors.

    Te Chamber o Commerce, Naional Associaion o Manuacurers, he Unied MineWorkers o America, and oher organizaions sympaheic o he polluers have joined

    hese eors o block reducions o mercury, lead, and millions o pounds o oher air-

    borne oxic chemicals.

    A broad coaliion o public healh and civic organizaions oppose he Inhoe CR and

    suppor he mercury regulaions, including heAmerican Lung Associaion, he Naural

    esources Deense Council, he Garden Club o America, NAACP, and oher public-

    ineres organizaions.

    On June 12 mayors rom more han 90 U.S. ciies, including New York Ciy MayorMichael Bloomberg, wroe a leter supporing he EPAs mercury regulaions, saing

    his long overdue saeguard will reap remendous benes or our communiies.

    A voe on he mercury CR could occur as soon as he week o June 18. Sen. Inhoes

    evered push or his resoluion is no coincidence since he has received $688,417 in oal

    conribuions rom elecric uiliies and mining companies during his congressional enure.

    Las all Sen. and Paul (-KY) atemped o pass a similar Congressional eview Ac

    resoluion blocking he Cross-Sae Air Polluion ule, bu i ailed in he Senae by a

    voe o 41-56.

    Bogus industry claims about the mercury rule

    Manyuiliy indusry represenaives claim ha he 2015 compliance deadline or he

    mercury sandard is oo soon and will hereore cause elecriciy price hikes and job

    http://switchboard.nrdc.org/blogs/edavis/2012/06/07/Letter%20to%20Sen%20%20Inhofe%206%206%2012.pdfhttp://americansforprosperity.org/newsroom/news-release-afp-activists-to-urge-senators-to-overturn-expensive-coal-regulation/http://action.americancommitment.org/6675/vote-yes-on-sj-res-37-to-stop-epas-war-on-coal/http://www.youtube.com/watch?v=D_ups2kupdghttp://www.youtube.com/watch?v=D_ups2kupdghttp://view.uschamber.com/?j=fe6516707563077e7c16&m=fee813797d630c&ls=fde6137171620c7b7c137676&l=feb31d747c6d0074&s=fe1c1c7777630078731276&jb=ffcf14&ju=fe311671756c057b731575&r=0http://www.nam.org/~/media/0314F8202BA94BF78619CDCC2BFBE3BC/Utility_MACT_Final_6_8_12_(7).pdfhttp://epw.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=91d020de-5eaa-49b0-8e09-8bc37a844b18http://epw.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=91d020de-5eaa-49b0-8e09-8bc37a844b18https://secure3.convio.net/ala/site/Advocacy?cmd=display&page=UserAction&id=5621http://www.gcamerica.org/positionpapers/pp_cleanair_10.pdfhttp://mikebloomberg.com/files/LisaJackson_MercuryLetter.pdfhttp://www.opensecrets.org/politicians/industries.php?cycle=Career&type=I&cid=N00005582&newMem=N&recs=20http://thehill.com/blogs/e2-wire/e2-wire/192879-senate-preserves-epa-pollution-rule-but-more-battles-awaithttp://thehill.com/blogs/e2-wire/e2-wire/192879-senate-preserves-epa-pollution-rule-but-more-battles-awaithttp://www.americanprogress.org/issues/2012/02/epa_hype.htmlhttp://www.americanprogress.org/issues/2012/02/epa_hype.htmlhttp://thehill.com/blogs/e2-wire/e2-wire/192879-senate-preserves-epa-pollution-rule-but-more-battles-awaithttp://thehill.com/blogs/e2-wire/e2-wire/192879-senate-preserves-epa-pollution-rule-but-more-battles-awaithttp://www.opensecrets.org/politicians/industries.php?cycle=Career&type=I&cid=N00005582&newMem=N&recs=20http://mikebloomberg.com/files/LisaJackson_MercuryLetter.pdfhttp://www.gcamerica.org/positionpapers/pp_cleanair_10.pdfhttps://secure3.convio.net/ala/site/Advocacy?cmd=display&page=UserAction&id=5621http://epw.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=91d020de-5eaa-49b0-8e09-8bc37a844b18http://epw.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=91d020de-5eaa-49b0-8e09-8bc37a844b18http://www.nam.org/~/media/0314F8202BA94BF78619CDCC2BFBE3BC/Utility_MACT_Final_6_8_12_(7).pdfhttp://view.uschamber.com/?j=fe6516707563077e7c16&m=fee813797d630c&ls=fde6137171620c7b7c137676&l=feb31d747c6d0074&s=fe1c1c7777630078731276&jb=ffcf14&ju=fe311671756c057b731575&r=0http://www.youtube.com/watch?v=D_ups2kupdghttp://www.youtube.com/watch?v=D_ups2kupdghttp://action.americancommitment.org/6675/vote-yes-on-sj-res-37-to-stop-epas-war-on-coal/http://americansforprosperity.org/newsroom/news-release-afp-activists-to-urge-senators-to-overturn-expensive-coal-regulation/http://switchboard.nrdc.org/blogs/edavis/2012/06/07/Letter%20to%20Sen%20%20Inhofe%206%206%2012.pdf
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    losses. Te Edison Elecric Insiuehe lobbying arm o he elecric uiliy secor

    has echoed hese concerns:

    Te [EPA] is underesimaing he complexiy and implemening his rule in such a shor

    period o ime, which can creae reliabiliy challenges and even higher coss o cusomers.

    Independen expers, however, deermined ha he mercury saeguards will have litleimpac on elecriciy reliabiliy. Te 2011 Long-erm eliabiliy Assessmen repor rom

    he Norh American Elecric eliabiliy Corporaion, an inernaional regulaory auhoriy

    esablished o evaluae reliabiliy o he bulk power sysem in Norh America, conradiced

    his claim in a repor las November. Business Wire summed up he repors ndings:

    Te NERC repor makes clear ha EPAs proposed regulaion o mercury and oher

    oxic air emissions om power plans will have manageable impacs on he naions

    elecric grid and will not jeopardize reliability.

    On December 1, 2011 he Deparmen o Energyreleased is own comprehensive sudyabou reliabiliy concerns rom implemenaion o polluion reducions. DOE deliber-

    aely analyzed a wors-case scenario admitedly more severe han wha is anicipaed or

    he EPA rules. DOE ound ha even in he wors-case scenario:

    he overall supply-demand balance or elecric power in each region examined

    would be adequae mechanisms exis o address such reliabiliy concerns on a

    plan-specic or more local basis.

    Whas more, he coal and uiliy indusries have known or wo decades ha reducions

    o mercury and oher air oxics would be required a some poin because o provisionsin he Clean Air Ac in 1990 signed ino law by Presiden George H.W. Bush. In 2000

    he EPAmade he deerminaion ha i was appropriae and necessary o regulae

    mercury and air oxics rom coal red power plans. Te EPA concluded:

    ha coal- and oil-red elecric uiliy seam generaing unis are signican emiters

    o HAP [Hazardous Air Polluans], including mercury which is emited om coal-

    red unis, and which EPA idenied as he HAP o greaes concern o public healh

    om he indusry.

    Te Adminisraor nds ha regulaion o HAP emissions om coal- and oil-red

    elecric uiliy seam generaing unis is appropriae and necessary.

    Te EPA was o propose reducion requiremens by December 15, 2003. Te George

    W. Bush adminisraion evenually issued is nal mercury reducions rule in 2005, bu

    a ederal appeals cour unanimously sruck down he rules in 2008. Te New York imes

    repored ha he cour overurned he mercury rule because he EPA had ignored is

    http://www.eei.org/Pages/default.aspxhttp://www.nerc.com/http://www.businesswire.com/news/home/20111128006355/en/NERC-Report-Confirms-Proposed-Clean-Air-Regulationshttp://energy.gov/articles/assistant-secretary-patricia-hoffmans-remarks-2011-ferc-reliability-technical-conferencehttp://www.epa.gov/mats/actions.htmlhttp://www.epa.gov/ttn/oarpg/t3/fr_notices/utilfind.pdfhttp://www.nytimes.com/2008/02/09/washington/09mercury.html?_r=3&scp=1&sq=mercury+ruling+appeals&st=nythttp://www.nytimes.com/2008/02/09/washington/09mercury.html?_r=3&scp=1&sq=mercury+ruling+appeals&st=nythttp://www.epa.gov/ttn/oarpg/t3/fr_notices/utilfind.pdfhttp://www.epa.gov/mats/actions.htmlhttp://energy.gov/articles/assistant-secretary-patricia-hoffmans-remarks-2011-ferc-reliability-technical-conferencehttp://www.businesswire.com/news/home/20111128006355/en/NERC-Report-Confirms-Proposed-Clean-Air-Regulationshttp://www.nerc.com/http://www.eei.org/Pages/default.aspx
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    legal obligaion o require he srices possible conrols on he oxic meal or o jusiy

    an alernaive approach.

    Aer he cour decision i ell o he new Obama adminisraion o comply wih he Clean

    Air Ac o 1990 by esablishing polluion-reducion sandards or mercury and oher oxic

    air polluans. I issued is proposed rules on March 16, 2011, and nally compleed he

    process wih nal rules aking eec on February 16, 2012. Te Clean Air Ac requirescompliance wih reducion sandards or hazardous polluans such as mercury no laer

    han 3 years aer he eecive dae o such sandard. Tis esablishes an eecive February

    2015 deadline or compliance wih he mercury and air oxics sandards.

    Many o he uiliies atemping o block hese rules in cour argue ha his is inad-

    equae ime o insall polluion conrols o comply wih he public healh sandards. Bu

    EPA gave ample ime o reduce hese dangerous polluans.

    Firs he EPAnoed ha he proposed rule was mosly unchanged rom [he] pro-

    posal, which means ha companies had a nearly a year head sar beginning wih herules proposal in March 2011 o comply wih he new sandards in 2015, providing

    nearly our years o comply wih hem.

    More imporanly, he Clean Air Ac allows uiliies o seek an addiional year o comply

    i hey need more ime or insallaion o [polluion] conrols, and he EPA or he

    saes adminisering he law are likely o gran ha exra ime.

    Te rules sae:1

    I an exising source is unable, despie bes eors, o comply wihin 3 years, a permi-ing auhoriy has he discreion o gran such a source up o a 1-year exension, on a

    case-by case basis, i such addiional ime is necessary or he insallaion o conrols.

    Siuaions in which insallaion schedules may ake more han 3 years including: sagger-

    ing insallaions or reliabiliy reasons or oher sie-specic challenges ha may arise relaed

    o source-specic consrucion, permiting, or labor, procuremen or resource challenges.

    Te EPAdeermined ha mos power plans will be able o mee he mercury and air

    oxics proecion sandards given he exra year or compliance, hereby ensuring elec-

    riciy reliabiliy:

    Te EPA believes ha here are likely o be ew, i any, cases in which i is no possible o

    miigae a reliabiliy issues wihin our years.

    Tere may sill be a ew limied siuaions where power plans need even more ime o

    comply wih he mercury sandards o avoid elecriciy reliabiliy issues. Tese aciliies

    http://www.epa.gov/airquality/powerplanttoxics/actions.htmlhttp://www.gpo.gov/fdsys/pkg/FR-2012-02-16/pdf/2012-806.pdfhttp://www.epa.gov/lawsregs/laws/caa.htmlhttp://www.epa.gov/mats/pdfs/20111221MATSsummaryfs.pdfhttp://www.gpo.gov/fdsys/pkg/FR-2012-02-16/pdf/2012-806.pdfhttp://www.epa.gov/compliance/resources/policies/civil/erp/mats-erp.pdfhttp://www.epa.gov/compliance/resources/policies/civil/erp/mats-erp.pdfhttp://www.gpo.gov/fdsys/pkg/FR-2012-02-16/pdf/2012-806.pdfhttp://www.epa.gov/mats/pdfs/20111221MATSsummaryfs.pdfhttp://www.epa.gov/lawsregs/laws/caa.htmlhttp://www.gpo.gov/fdsys/pkg/FR-2012-02-16/pdf/2012-806.pdfhttp://www.epa.gov/airquality/powerplanttoxics/actions.html
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    8 Center or American Progress |They Fought th e Law

    can receive an addiional h year o insall polluion conrols. Bu such exensions should

    be sparingly graned o avoid coninued polluion and healh hazards or Americans.

    Te botom line is ha he mercury-sandards-seting process began nearly a dozen

    years ago. Power companies had ample noice ha he EPA would evenually esablish

    reducion requiremens aer a lenghy process o researching, developing, proposing,

    adjusing, and nalizing hese rules. Polluing companies reques or sill more imeignores he 12 years o his process during which billions o pounds o airborne oxic

    polluion were sho ino our skies and damage rom hese polluans harmed our chil-

    dren, parens, and oher vulnerable people.

    Companies are fighting to continue emitting 33,000 pounds of mercury

    and billions of pounds of acid rain and smog ingredients

    Te companies joining one or boh o hese lawsuis are some o he bigges pollu-

    ers in he naion. Blocking hese polluion conrols in he cours or in Congress couldsave hem millions o dollars by avoiding insallaion o polluion conrols. Meanwhile,

    Americans pay he price o his polluion.

    Tiry-eigh uiliy companies are plainis or belong o an organizaion ha is a plaini

    in one or boh suis. (see able) Tese companies own a oal o 219 coal-red power

    plans. A CAP analysis based on he EPAs annual emissions repors calculaed ha

    these plants spew more than 33,000 pounds of mercury into the atmosphere every

    year, which is 61 percen o all mercury emissions rom power plans.These plants also

    emit almost 6.5 billion pounds of sulfur dioxide and nitrogen oxides annuallynearly

    22 pounds or every man, woman, and child in he Unied Saes.

    On June 7 he Environmenal Inegriy Projec released a sarling repor concluding ha

    51 o he diries U.S. coal-red power plans cause up o 5,700 deahs a year. Te sudy

    ound ha 18 o hese 51 plans pollue so much ha he healh damages rom he polluion

    cos more han he value o he elecriciy ha he plans produce. All 18 o hose plans are

    owned by companies suing he EPA over he cross-sae and mercury air oxics rules.

    http://www.environmentalintegrity.org/http://www.environmentalintegrity.org/news_reports/06_07_2012.phphttp://www.environmentalintegrity.org/news_reports/06_07_2012.phphttp://www.environmentalintegrity.org/
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    9 Center or American Progress |They Fought th e Law

    FIGURE 3

    The plantis and their pollution

    Mercury and other toxics rom utilities suing EPA

    Company name

    Number o

    power plants

    owned

    Annual

    mercury

    emissions

    (2010*, in lbs)

    Annual NOx and

    SOx emissions

    (2011, in millions

    o lbs)

    Cross state

    plainti

    Mercury and air

    toxics plainti (or

    member o coalition

    that is a plainti)

    Alcoa 2 235 3 X X

    Allegheny Energy/FirstEnergy 17 1,557 348 X X

    Ameren Corporation 11 1,947 284 X X

    American Electric Power 21 4,268 852 X X

    Consumers Energy (CMS energy) 5 352 102 X X

    Dayton Power & Light 3 268 27 X X

    Dominion 12 926 271 X X

    Calypso Energy Holdings 2 2 - X

    Detroit Edison (DTE) 6 1,394 185 X X

    Duke Energy Corp. 17 2,124 459 X X

    East Kentucky Power Cooperative 3 148 63 X

    Edison International 8 801 273 X

    Energy Future Holdings 5 1,491 388 X X

    Entergy Corporation 3 1,039 78 X

    GenOn Energy 15 1,811 383 X X

    Kansas City Power & Light Co. 2 76 4 X X

    Louisville Gas & Electric and Kentucky

    Utilities7 554 172 X X

    Madison Gas & Electric Co. 2 478 28 X X

    Minnesota Power Co./ALLETE 3 298 21 X X

    NiSource Inc. 4 237 68

    Northern States Power Company

    (owned by Xcel)6 538 73 X

    Ohio Valley Electric Corp. 2 488 299 X X

    Otter Tail Power Co. 3 637 82 X X

    Pinnacle West/Arizona Public Service 3 570 128 X X

    Public Service Company o New

    Mexico (PNM)1 8 21 X X

    Progress Energy Inc. 9 872 186 X X

    Salt River Project 2 583 42 X X

    South Carolina Electric and Gas Co. 5 102 66 X X

    South Mississippi Electric Power

    Association1 N/A 13 X

    Southern Company 21 4,237 734 X X

    Southwestern Public Service Co. 2 252 46 X

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    10 Center or American Progress |They Fought th e Law

    Ineresingly, some o he bigges power-plan-owning companies individually led

    peiions agains he cross-sae rule bu no agains he mercury sandards. Insead, wo

    indusry coaliions ha many o hese companies belong o led a brie on heir behal

    in opposiion o he mercury sandards. Tese wo big associaionshe Midwes

    Ozone Group and he Uiliy Air egulaory Grouphave 27 and 35 uiliy and coal-

    company members, respecively, alhough many uiliies belong o boh organizaions.

    Te Midwes Ozone Groups membership includes heAmerican Coaliion or Clean

    Coal Elecriciy, or ACCCE, which isel is a coaliion leading he charge o block

    mercury and air oxics reducion sandards. ACCCEs members include major uiliiesas well as Peabody Energy, he worlds larges coal company. ACCCE spen $35 million

    in he all o 2011 on misleading elevision ads atemping o convince Americans o

    oppose hese healh saeguards. ACCCE has commited o spending an addiional $40

    million his year on ani-clean-air adverisemens.

    Te Uiliy Air egulaory Group is somewha secreive. We could no ideniy a web-

    sie or oher public inormaion or a curren lis o is members. Bu in 2006 he group

    included a membership lis when i submited commens o he EPA on he proposed

    revision oNaional Ambien Air Qualiy Sandards or Pariculae Mater. Te Cener

    or American Progress updaed his lis o members based on indusry sources.2

    Te uiliy companies suing he EPA collecively earn billions o dollars each year. CAP

    conduced an analysis oSecuriies and Exchange Commission repors o he 43 publicly

    raded uiliy and coal companies nancial saemens. We ound ha he 43 companies

    direcly suing he EPA or paricipaing in a sui hrough a coaliion earned $27 billion las

    year.3 Tese companies also hold $21 billion in cash reserves as o January 2012.

    Company name

    Number o

    power plants

    owned

    Annual

    mercury

    emissions

    (2010*, in lbs)

    Annual NOx and

    SOx emissions

    (2011, in millions

    o lbs)

    Cross state

    plainti

    Mercury and air

    toxics plainti (or

    member o coalition

    that is a plainti)

    Sunbury Generation (Corona Power LLC) 1 37 32 X

    Sunower Electric Power Corp. 1 130 6 X

    Tennessee Valley Authority (TVA) 11 1,936 546

    Tucson Electric Co. 1 365 23 X X

    Westar Energy Inc. 4 980 75 X

    Western Farmers Electric Cooperative 1 95 19 X

    Wisconsin Electric Power Company

    (We Energies)6 966 109 X

    Wisconsin Public Service Corporation 2 182 25 X

    Total 230 32,984 6,532

    *2010 is most recent year available for mercury emissions

    Source: Environmental Protection Agencys Clean Air Markets and Toxic Regulatory Index Data

    http://midwestozonegroup.com/membercomp.htmlhttp://midwestozonegroup.com/membercomp.htmlhttp://switchboard.nrdc.org/blogs/jwalke/UARG%20members%20from%202006%20filing%20on%20PM%20standards.pdf%20-%20Adobe%20Acrobat%20Pro.pdfhttp://www.cleancoalusa.org/about-us/membershttp://www.cleancoalusa.org/about-us/membershttp://www.peabodyenergy.com/http://www.politico.com/politicoinfluence/0811/politicoinfluence74.htmlhttp://www.youtube.com/watch?v=xheNqLlhhFc&list=UUrOfUQ3izW_1D4dCYIAbNCw&index=1&feature=plcphttp://www.bloomberg.com/news/2012-05-07/coal-fights-obama-with-nascar-youtube-campaigns.htmlhttp://www.bloomberg.com/news/2012-05-07/coal-fights-obama-with-nascar-youtube-campaigns.htmlhttp://www.youtube.com/watch?v=wL5HMHIBSdEhttp://www.epa.gov/ttnnaaqs/standards/pm/s_pm_index.htmlhttp://www.sec.gov/edgar/searchedgar/companysearch.htmlhttp://www.sec.gov/edgar/searchedgar/companysearch.htmlhttp://www.epa.gov/ttnnaaqs/standards/pm/s_pm_index.htmlhttp://www.youtube.com/watch?v=wL5HMHIBSdEhttp://www.bloomberg.com/news/2012-05-07/coal-fights-obama-with-nascar-youtube-campaigns.htmlhttp://www.bloomberg.com/news/2012-05-07/coal-fights-obama-with-nascar-youtube-campaigns.htmlhttp://www.youtube.com/watch?v=xheNqLlhhFc&list=UUrOfUQ3izW_1D4dCYIAbNCw&index=1&feature=plcphttp://www.politico.com/politicoinfluence/0811/politicoinfluence74.htmlhttp://www.peabodyenergy.com/http://www.cleancoalusa.org/about-us/membershttp://www.cleancoalusa.org/about-us/membershttp://switchboard.nrdc.org/blogs/jwalke/UARG%20members%20from%202006%20filing%20on%20PM%20standards.pdf%20-%20Adobe%20Acrobat%20Pro.pdfhttp://midwestozonegroup.com/membercomp.htmlhttp://midwestozonegroup.com/membercomp.html
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    TABLE 4

    Coalitions with utility members ile brie against mercury rule

    Utility Air Regulatory Group and Midwest Ozone Group members

    Utility Air Regulatory Group members*

    American Electric Power National Mining Associaton

    Allegheny Energy National Rural Electric Cooperative Association

    Ameren NiSource Inc.

    American Coalition or Clean Coal Electricity Oglethorpe Power Corp.

    American Public Power Association Ohio Valley Electric Corp.

    Consumers Energy Otter Tail Power Co.

    Dayton Power Pinnacle West/Arizona Public Service

    Detroit Edison Energy Co. Progress Energy Inc.

    Dominion Public Service Company o New Mexico

    Duke Energy Corp. Salt River Project

    Dynegy Inc. South Carolina Elec & Gas Co.

    Edison Electric Institute Southern Company Services

    FirstEnergy/Allegheny Tennessee Valley Authority

    GenOn Energy, Inc Tri-State Generation & Transmission

    Kansas City Power & Light Co. Tucson Electric Co.

    Louisville Gas & Electric and Kentucky Utilities Wabash Valley Power Association

    Luminant WeEnergies

    Minnesota Power Co.

    Midwest Ozone Group members

    Alcoa Duke Energy

    Alliance Resource Partners Energy Future Holdings

    Alpha Natural Resources First Energy

    Ameren Corporation Joy Global Inc.

    American Coalition or Clean Coal Electricity LG&E and KU Energy LLC

    American Electric Power Natural Resource Partners

    Arch Coal, Inc. Norolk Southern

    BNSF Railway Oglethorpe Power

    Caterpillar Peabody Energy

    Consol Energy Southern Company

    Consumers Energy Springfeld City Water, Light & Power

    CSX Tri-State

    Dayton Power & Light Union Pacifc

    DTE Energy Western Fuels Association

    *ACCCE members indicated in bold

    Source: Midwest Ozone Group, Member Companies, available at http://midwestozonegroup.com/membercomp.html.

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    12 Center or American Progress |They Fought th e Law

    Insead o spending his money o use he cours or pressure Congress o block or delay

    hese saeguards, he companies could spend i invesing in polluion-reducion echnol-

    ogy o proec Americans. According o daa rom he Cener or esponsive Poliics,

    in 2011 he companies and organizaions suing he EPA o overurn he cross sae and

    mercury rules spen $86 million lobbying Congress. Teir associaed poliical acion

    commitees raised $20 million so ar in he 2011-2012 elecion cycle.

    Some utilities are investing in clean technology

    Some companies ha belong o he Uiliy Air egulaory Group are implemening

    compliance measures o reduce heir polluion. For insance,ALLEE/Minnesoa

    Power announced ha i will inves $350 million o $400 million over he nex ew

    years o reduce air polluion rom is larges coal-red aciliy, Boswell Energy Cener in

    Cohasse, Minnesoa.ALLEE Chairman, Presiden, and CEO Al Hodnik old share-

    holders on May 8, 2012:

    We can use cos-eecive echnology o grealy reduce emissions and keep our larges

    and newes base-load plans operaing or many more years. Tis will allow us o serve

    he growing energy needs o our cusomers economically and reliably, while meeing our

    environmenal responsibiliies.

    Oher uiliies companies srongly suppor he EPAs clean air rules. Exelon

    Corporaion, whose nearly 30,000 employees serve more han 6.6 million cusomers,

    is he larges compeiive U.S. power generaor. Exelon esied beore he Federal

    Energy egulaory Commission in avor o boh he cross-sae smog and mercury

    polluion sandards. Kahleen Barron, vice presiden or ederal and regulaory aairs,said in her esimony:

    Te elecric indusry has known abou hese rules or many years; wha i needs now is

    or he rules o be nalized so i will have he cerainy needed o begin implemenaion.

    Te rules will be he driving orce o modernize and improve he efciency o our aging

    elecric sysem so ha Americans can coninue o have a sae and reliable elecric sys-

    em o suppor our naions economic growh.

    Senators should say no to polluter interests

    Te Senae is expeced o soon debae and voe on Sen. Inhoes Congressional eview

    Ac resoluion o block he mercury and air oxics sandards. Senaors should rejec i

    o suppor he healh and well being o he Americans hey represen. Air polluion is a

    http://www.opensecrets.org/http://www.startribune.com/printarticle/?id=150626625http://www.startribune.com/printarticle/?id=150626625http://investor.allete.com/releasedetail.cfm?ReleaseID=670973http://www.exeloncorp.com/aboutus.aspxhttp://www.exeloncorp.com/aboutus.aspxhttp://www.exeloncorp.com/assets/performance/docs/testimony_Barron_FERC.pdfhttp://www.exeloncorp.com/assets/performance/docs/testimony_Barron_FERC.pdfhttp://www.exeloncorp.com/aboutus.aspxhttp://www.exeloncorp.com/aboutus.aspxhttp://investor.allete.com/releasedetail.cfm?ReleaseID=670973http://www.startribune.com/printarticle/?id=150626625http://www.startribune.com/printarticle/?id=150626625http://www.opensecrets.org/
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    13 Center or American Progress |They Fought th e Law

    problem ha won go away by relying on uiliies o volunarily decide wheher, when,

    and how much o reduce heir polluion. Te mercury rules provide he regulaory cer-

    ainy so ha companies can inves in clean up echnology knowing ha he sandards

    will be enorced.

    Conclusion

    Te cross-sae and mercury and air oxics rules are essenial o proec children, seniors,

    he inrm, and ohers rom smog, acid rain, mercury, lead, and oher oxic air polluans.

    When ully implemened, hey will proec he healh o Americans by avoiding up o

    45,000 premaure deahs annually.

    Te companies using he cours and he Senae o preven or delay hese saeguards

    make billions o dollars in pros and spend ens o millions o dollars on misleading

    ads, campaign conribuions, and lobbying Congress in a mulilaeral batle agains

    public healh.

    Is ime or public ofcials and candidaes or ofce o repudiae hese salling acics

    and encourage big uiliies o comply wih he law raher han gh i.

    Tanks o John Walke, clean air direcor and senior atorney or he Naural Resources

    Deense Council; he American Lung Associaion; and Celine Ramsein, ormer inern wih

    he Cener or American Progress Energy Policy eam.

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    Endnotes

    1 Environmental Protection Agency, National Emission Stan-dards or Hazardous Air Pollutants From Coal- and Oil-FiredElectric Utility Steam Generating Units and Standards oPerormance or Fossil-Fuel-Fired Electric Utility, Industrial-Commercial- Institutional, and Small Industrial- Commer-cial-Institutional Steam Generating Units,Federal Register77 (32) (2012):94099410, available at http://www.gpo.gov/dsys/pkg/FR-2012-02-16/pd/2012-806.pd.

    2 Companies identifed as UARG members were contacted byCAP about their membership, and were provided wi th anopportunity to comment abo ut it or their position on MATS.None o them elected to provide comments. A copy o theletter to companies is attached.

    3 Only 43 o the companies suing have publicly availablefnancial inormation.