UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON,D

.C 20460 

# AUG 19 

# 2011

OF'FICE OF AIR AND**RA~IA** 10" The Honorable Scott Getzschrnan, Mayor City ofFremont 400 East Military Avenue Fremont, Nebraska 68025-5141
Dear Mayor Getzschman:
Thank you for your letter ofJuly 27, 2011, to Administrator LisaJackson, expressing concern over potential impacts ofthe proposed "National Emission Standards for Hazardous Air Pollutants from Coal- and Oil-fired Electric Utility Steam Generating Units and Standards ofPerformance for FossilFuel-Fired Electric Utility, Industrial-Commercial-Institutional, and Small Industrial-CommercialInstitutional Steam Generating Units" (the Mercury and Air Toxics Standards rule, MATS), which was published in the FederalRegister on May 3, 2011. The Administrator asked that I respond on her behalf.
The U.S. Environmental Protection Agency carefully analyzed the issue ofelectric supply, working closely with the Department ofEnergy (DOE). Ourmodeling showsthat these proposed standards would result in relatively small changes in the average retail price ofelectricity, primarily due to increased demand for natural gas, keeping electricityprices below 1990 levels. This translates into a 1.3 percent increase in residential natural gas prices and a consumer electricity price increase of approximately $3-4 per month. The proposed standards, which will save thousands oflives and preventtens ofthousands ofasthma and heart attacks, are bothreasonable and achievable, and many sources already are meeting them. Investing in pollution control at powerplants creates high-quality Americanjobsin manufacturing steel, cement, and other materials needed to build pollution control equipment, and in installing, operating and maintaining that equipment. The EPA estimates this proposed rule will provide employment for thousands by supporting 31,000 short-term constructionjobs and 9,000 long-term utilityjobs. These jobswould be distributed nationwide, in proportion to the number ofcoal-fired units that need upgrades. The EPA, the Federal Energy Regulatory Commission and the DOE will work with entities whose responsibility is to ensure an affordable, reliable supply ofelectricity, including State Utility Commissions, Regional Transmission Organizations and the National Electric Reliability Council to share information and encourage themto begin planningfor compliance and reliability as early as possible. This will ensure orderly, affordable compliance with the proposed standards. Energy efficiency investments that achieve moderate levels ofenergy demand reduction in compliance strategies can also substantially cut total emissions control costs for the power sector.

Internel Address (URL) • http Ilwwwepa gov Recycled/Recvclable • Pnnted With Vegelable all Baseo Inks on 100% POSlconsumer Process Chlonne Free Recycled PaperWith regard to the compliance period, the Clean AirAct gives existingunits three years to comply. State and local pennitting authorities (ratherthan the EPA) are allowed, under certain circumstances, to provide for an additional year and theEPA will support this pennittingauthority flexibility where appropriate. Again, thank you for your letter. Itwill be placed in the public docket for this rulemaking. I appreciate the opportunity to be ofservice and trust the information provided is helpful. Sincerely,