January 9, 2009

NY Power Plant Emissions Regulations Good to Go for March ‘09

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New York passed air pollution rules that are stricter than those imposed by the Environmental Protection Agency (EPA), the state’s Environmental Board announced.

The rules are related to a provision of the federal Clean Air Act that tells plants to install new emissions controls when expanding or making upgrades that go beyond routine maintenance.

The new regulations, which take effect in March, are supposed to prevent power plants and factories from belching out too much smog and soot, reports the Associated Press.

But businesses say the rules will increase costs and red tape, make it difficult for businesses to make routine repairs to equipment and processes. New York will be less competitive for businesses compared to other states, said the CEO of the Business Council, the state’s industry trade group.

New York is part of the Regional Greenhouse Gas Initiative, an organization composed of 10 Northeast states that places a cap on GHG emissions from power plants.

In August, the Environmental Board approved the proposed “cap and trade” program that makes power plant companies purchase C02 allowances at quarterly auctions or on secondary markets. New York’s annual emissions allowance is 64.3 million tons.

New York was recently one of 11 Northeastern states to agree to a low carbon fuel standard for vehicles and buildings.

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