UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON,D

.C 20460 

# JUL 12 2011

OFFICE OF AIR AND RADIATION
Mr. 

### R. D. Cross Mayor City ofGilmer P.O. Box 760 Gilmer, Texas 75644

DearMayor Cross:
Thank you for your letter ofJune 16,2011,to LisaJackson, expressing concernover 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 Fossil-Fuel-Fired Electric Utility, Industrial-Commercial-Institutionai, and Small Industrial-Commerciat-Institutional 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 Irespond onher 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 in residential 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 ofasthma and heart attacks, are both reasonable and achievable, and many sources already are meeting them. Investing in pollution control at powerplants creates high-quality Americanjobs in manufacturing steel, cement, and othermaterials 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, including in Texas, 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 CoUIicil to share information and encourage them to begin planning for compliance and reliability as early as possible. This will ensure orderly, affordable compliance withthe 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.
Withregard to the compliance period, the Clean Air Act gives existing units three years to comply. State and local permitting authorities (ratherthan the EPA) are allowed, under certain circumstances, to

Internet Ad res:> (URL) • http.llwwwepa gov Recycled/Recyclable ' Printed with Vegetable Orl Based Inks en 100% Postce surner Precess Chlorine Free Recycled Pacerprovide for an additional year and the EPA will support this permitting authority flexibility where appropriate. Again, thank you for your letter. I appreciate the opportunity to be ofservice and trustthe information provided is helpful.

# 'V:-~ inaMcCarthy AssistantAdministrator