UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D

.C 20460 

# JUL 12 2011

OFFICE OF AIR AND RADIATION Mr. Billy Ray Jones Mayor City ofNashville 426 North Main Street Nashville, Arkansas 71852 Dear MayorJones: Thank you for your letter ofJune 20, 2011, to Lisa Jackson, expressing concern over several potential impacts ofthe proposed "National Emission Standards for Hazardous Air Pollutants from Coal- and Oilfired Electric Utility Steam Generating Units and Standards ofPerformance for Fossil-Fuel-Fired Electric Utility, Industrial-Commercial-Institutional, and Small Industrial-Commercial-Institutional Steam Generating Units" (the Mercury and AirToxics Standards rule, MATS), which was published in the Federal Register on May 3, 2011. The Administrator asked that I respond on her behalf. The EPA carefully analyzed the issue ofelectric reliability, working closely with the Department of Energy (DOE). Our modeling shows that these proposed standards would result in relatively small changes in the average retail price ofelectricity, primarily due to increased demand for natural gas, keeping electricity prices below 1990 levels. This translates into a 1.3 percent increase inresidential natural gas prices and a consumer electricity price increase ofapproximately $3-4 per month. The proposed standards, which will save thousands oflives and prevent tens ofthousands ofastluna and heart attacks, are bothreasonable and achievable, and many sources already are meetingthem. Investing in pollution control at power plants creates high-quality Americanjobs in 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 jobs would be distributed nationwide in proportion to the number ofcoal-fired units that need upgrades. The EPA, the Federal Energy Regulatory Commission, and 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 them to beginplanning for compliante 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 cut substantially total emissions control costs for the power sector. With regard to the issue ofthe 3-yearcomplianceperiod, the Clean Air Act gives existing units three years to comply. State and local permitting authorities (ratherthan the EPA) are allowed, under certain

Internel Address (URl, • http IIwwwepa gov RecycledlRecyclable • Pnn ed w,lh Vegelable Oil Based Inks on 100% PoslConsumer Process Chlonne Free Recycled Papercircumstances, to provide for an additional year and the EPA will supportthis pennitting authority flexibility where appropriate. Again, thank you for your letter. I appreciate the opportunity to be ofservice and trust the infonnation provided is helpful.

c.erely,

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# ~ GinaMcCarthy AssistantAdministrator