UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHIN GTON

. 0 C 20460



# AUG 1 9 

# 2011
OFFICE OF AIR A('.;O**rU,D·ATIO~ .**  The Honorable William R. Rhodes, Governor Gila River Indian Community 525 West Gu u Ki Post Office Box 97 Sacaton, Arizona 85 147
Dear Governor Rhodes:
Thank you for your letter ofJuly 14, 2011, to Administrator Lisa Jackson, 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 Federal Register on May 3, 2011. The Administrator asked that I respond on her behalf.
The U.S. Environmental Protection Agency carefully analyzed the issue of electric supply, working closely with the Department ofEnergy (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 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 prevent tens ofthousands ofasthma and heart attacks, are both reasonable and achievable, and many sources already are meeting them. 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 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 them to begin planning for 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.

Internet Address (URL) • http IIwwwepa go. Recycled/Recyelable • p, ntea WItt, Vegelable 0,1 BaseCl Inks em ,00'1 " Postconsumer. Process Chlorrne Free Recy

.**~d** P perWith regard to the compliance period, the Clean Air Act gives existing units three years to comply. State and local permitting authorities (rather than the EPA) are allowed, under certain circumstances, to provide for an additional year and the EPA will support this permitting authority flexibility where appropriate. Again, thank you for your letter. It will be placed in the public docket for this rulemaking. 1appreciate the opportunity to be ofservice and trust the information provided is helpful. Sincerely,

McCarthy Assistant Administrator