April 7, 2011

Mr. Keith Rose (R10

- Public_Comments@epa.gov) EPA Region 10 Office of Air, Waste and Toxics

AWT

- 107 1200 Sixth Ave, Suite 900 Seattle, WA 98101

Re: Comments on Proposed Approval of Oregon Regional Haze State Implementation Plan

Dear Mr. Rose,

The Citizens’ Utility Board of Oregon (CUB) recommends that EPA approve Oregon’s Regional Haze State Implementation Plan (“RH SIP”) as published in the March 8, 2011 Federal Register.

While the SIP applies to a number of facilities in the State, the largest impact is

on the Boardman coal

- fired power plant. The Best Available Retrofit Technology (BART) rules approved by the DEQ are the product of several years of work and are also the p roduct of a collaborative process involving state agencies, environmental organization s , consumer groups, local governments, and other stakeholders. The rule s require significant reductions in air pollution, while allowing Oregon to pursue important

state policies targeted towards reducing carbon emissions, and keeping electric rate s affordable.

CUB was established under Oregon law to represent the interests of residential utility customers “before legislative, administrat ive and judicial bodies.” 1 While utility customers worry a great deal about the price of energy, in Oregon they also are concerned about the environmental consequences of energy production. Few Oregonians would argue against requiring that our utility companies comply with the Federal Clean Air Act, even though, in most circumstances, those costs will be added to their energy bills.

CUB has spent a great deal of time evaluating various options for Boardman and we believe that DEQ has achieved a remarkable result with its rules. The rules allow for cost effective pollution controls which will reduce air pollution generated by the facility, including air pollutants which contribute to haze in Class 1 areas. But the rules also require the plant to be shut down by December 31, 2020. While we recognize that under the BART rules, a plant shut down is not considered a control technology, we also

1 ORS 774.020 and ORS 774.030 

# Citizens’ Utility Board of Oregon

610 SW Broadway, Suite 400 Portland, OR 97205 (503) 227

- 1984 ▪ (503) 274

- 2956 ▪ cub@oregoncub.org ▪ www.oregoncub.orgrecognize that a plant shut down will go well beyond BART requirements for air

pollution reduction. Just as importantly a plant shut down allows the State of Oregon to move forward with its goals to reduce carbon emissions statewide and will protect utility customers from the costs and risks that will be associated with carbon regulation.

Oregon DEQ should be commended for its achievement. While the SIP rule will add significant new pollution control costs to the bills of utility ratepayers, DEQ has worked hard to try to ensure that this rule is cost effective. This is critical, because a rule that added additional costs would make it difficult for the utility to recover its clean air

investment without cre ating significant harm to customers or running the plant indefinitely into the future. Neither of which is a good outcome for customers or the

environment.

As a regulated electric utility, PGE is different than other companies. It provides

an essential service and its rates are set by a state agency, the Public Utility Commission of Oregon (OPUC). The O PUC requires utilities to prove that investments are Least Cost/Least Risk for customers. CUB has spent a great deal of time over the last two

years, wo rking with DEQ and OPUC to ensure that the plan being developed could

in deed meet both the pollution reduction requirements of BART and the Least Cost / Least

Risk Planning requirement of the OPUC. 2 The key to this was reducing the operating life of the plant, which reduced the pollution reduction investments that DEQ would find cost effective and reduced the carbon regulatory risks that the O PUC associates with future

coal

- fired generation.

Fina lly, CUB recognizes that phasing out a large, modern, baseload power plant, which is the utility’s single largest resource

, is a difficult choice to make. In spite of what scientists tell us is required to respond to climate change, few utilities are actu ally moving to close modern coal plants. It is a difficult step for utility managers, utility regulators and customer advocates. Building a consensus among stakeholder groups in Oregon was not easy. But it has been achieved. Customers, regulators, environmentalists, labor, and government officials have all embraced this plan and committed to working to achieve Boardman’s closure by December 31, 2020.

Quite frankly, it is a result that makes me proud to be an Oregonian. We urge EPA to support ou r efforts by approving the Oregon SIP.

Respectfully submitted,

Bob Jenks

Executive Director

2 OAR 860

- 027

- 0400