UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, DC 20460 

# AUG 11 2011

OFFICE OF AIR AND RAOtA 10 The Honorable Eldon Long Mayor ofLowell 216 North Lincoln Street Lowell, Arkansas 72745
Dear Mayor Long: Thankyou for your letter ofJuly 12, 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 FederalRegister on May 3, 2011. The Administrator asked that Irespond on her behalf. We appreciate your interest in ensuring these standards are flexible and cost-effective, and we will consider your comments as we proceed with the rulemaking. The U.S. Environmental Protection Agency carefully analyzed the issue ofelectric supply, working closely with the Department ofEnergy (DOE). Our modeling shows that these proposed standards would result in relatively smaU changes inthe 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 electricityprice increase of approximately $3-4 per month. The proposed standards, which will save thousands oflives and preventtens 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 other materials needed to build pollution control equipment, and in installing, operating and maintaining that equipment. The EPA estimates this proposed rule will provide employmentfor thousands by supporting 31,000 short-term constructionjobsand 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 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.

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. Process Chlorine Free Recycled PapelWith regard to the compliance period, the Clean AirActgives existing units three years to comply. State and local pennitting authorities (rather thanthe EPA) are allowed, under certain circumstances, to provide for an additional year and the EPA will support this pennitting authority flexibility where appropriate. Again, thank you for your letter. It will be placed in the public docket for this rulemaking. I appreciate the opportunity to be ofservice and trust the information provided is helpful. Sincerely,

GinaMcCarthy AssistantAdministrator