State Given More Time On San Juan Emissions
EPA Allows 90-Day Evaluation Extention
The U.S. Environmental Protection Agency on Monday granted the state’s request for more time to evaluate alternatives to the agency’s 2011 rule that would require millions of dollars of new pollution controls at the San Juan Generating Station.
In a letter to Gov. Susana Martinez, EPA Administrator Lisa Jackson said she signed a 90-day stay of the federal plan, effectively pushing the five-year compliance date back three months.
“This is an important opportunity to come to an agreement on an alternative state implementation plan that could replace the federal implementation plan,” Jackson said in the letter. “I agree with you that this would be in both the environmental and economic best interests of New Mexico.”
Martinez asked for the delay in April to see if the state, Public Service Company of New Mexico, which owns 46 percent of the coalfired plant, and other parties with other solutions for bringing San Juan into compliance with federal haze requirements.
“We think this is a very positive development and very pleased the EPA followed Gov. Martinez’s recommendation,” New Mexico Environment Department general counsel Ryan Flynn told the Journal.
At issue is the EPA’s ruling requiring PNM and other owners of San Juan to install more pollution controls at San Juan to reduce regional haze. It said the most cost-effective would be selective catalytic reduction.
EPA estimated the cost at $345 million. PNM estimates it would cost about $750 million, which it says was corroborated by bids received this spring. The company said that could cost ratepayers initially about $85 more a year.
The state offered an alternative plan calling for non-selective catalytic reduction — or SNCR — which it estimated would cost $77 million.
The EPA last month approved virtually all of the state implementation plan for haze and improving visibility in national parks and wilderness areas except its proposal for less expensive controls. It said its plan would be far more effective in cutting nitrogen oxide emissions.
“We believe the state plan works for the environment and for the people in our state, PNM Resources President and CEO Pat Vincent-Collawn said in a statement, “but we are open to other balanced approaches that consider customer costs, environmental benefit and the economic impact to the citizens of the state.”