EPA Policy Tries to Undermine Montana on Coal Plant Permitting

In December 2005 the U.S. Environmental Protection Agency sent a memo to a utility consultant in an attempt to undermine efforts across the country to encourage the use of IGCC technology. EPA is now describing this memo as its nationwide policy. With such a large number of permit applications for new coal-fired power plants in Montana and across the country, this policy could result in the building of new plants that use old, more polluting technologies.

Each year coal-fired power plants emit millions of tons of sulfur dioxide, particulates, and global warming pollutants such as carbon dioxide—as well as mercury and other toxins—into the air (see Fact Sheet on "The Problems with Burning Coal to Generate Electricity"). In recent years, coal plant developers including the Roundup Power Project have often proposed generating electricity using pulverized-coal boilers (PC). PC technology is an old style, highly polluting way to generate electricity. IGCC is more efficient and less polluting. It uses high pressures and temperatures to convert coal into gas. Pollutants such as hydrogen sulfide are removed. The gas, mostly hydrogen, can then be burned in a gas turbine to produce electricity. IGCC is 98%–99% efficient at removing sulfur dioxide. It can reduce mercury emissions by more than 90%, and can be designed to use less water. It also can be retrofitted to capture carbon dioxide pollution, the leading cause of global warming. That could be very helpful if a way to effectively store or dispose of carbon dioxide becomes available in the future.

When Congress wrote the Clean Air Act, it clearly intended IGCC technology to be considered in the permitting process for coal plants. An amendment, added to the Clean Air Act in 1977, clarified that permitting agencies were supposed to consider alternatives such as IGCC when reviewing air permit applications for traditional coal-fired plants. Agencies are supposed to chose the technology that achieves the greatest environmental benefit for the money.

MEIC appealed the Roundup Power Project’s air quality permit to the Board of Environmental Review. One of the issues raised was that DEQ failed to consider IGCC technology as an alternative to Roundup’s proposed PC technology. The Board found that the State should have considered IGCC in its analysis of pollution control alternatives.

Now EPA is trying to undermine that decision, and similar decisions around the country. The EPA policy says that IGCC does not have to be considered, although the policy was “announced” merely in a letter to an industry consultant, not developed through any formal rule-making process. And the policy directly conflicts with decisions that have been made in a number of states including New Mexico, Illinois, and Kentucky.

MEIC and organizations around the country that are concerned about the impacts coal burning will have on the environment and human health are working to reverse EPA’s new policy. If alternatives to old coal-burning technologies are ever to be implemented, they must be given serious consideration from the start of the permitting process.