UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D

.C

. 20460



# AUG 1 9 2011**C'F~'C E**  JF A F i\N f' RAD IAT IO, ; The Honorable Richard C. Barr Mayor City ofAdel 112 North Parrish Avenue P.O. Box 1530 Adel , Georgia 31620
Dear Mayor Barr:
Thank you for your letter ofJuly 26, 20 11, to Administrator Lisa Jackson , expressing concern over potential impacts of the 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, 20 II. 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 Depa11ment 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 of approximately $3-4 per month.
The proposed standards, which will save thousands of lives and prevent tens of thousands of asthma 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 utility jobs. These jobs would be distributed nationwide, in proportion to the number of coal-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 of electricity, 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 of energy demand reduction in compliance strategies can also substantially cut total emissions control costs for the power sector.

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### With regard to the compliance period, the units years to

. State and local permitting authorities (rather than the are allowed, under certain circumstances, to provide for an additional the will support this permitting flexibility where

thank for your It 

### will be public docket for this opportunity to be and trust the information provided is helpfuL Sincerely,