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EPA Mercury Regulation

On March 15, 2005, the U.S. Environmental Protection Agency (EPA) issued its final Clean Air Mercury Rule (CAMR) for coal-based power plants. The CAMR utilized a market-based cap-and-trade approach under section 111 of the Clean Air Act (CAA) to require emissions reductions in two phases: a cap of 38 tons in 2010, and 15 tons after 2018, for a total reduction of 70 percent from current levels. Facilities would have to demonstrate compliance with the standard by holding one "allowance" for each ounce of mercury emitted in any given year. In the final rule, EPA stated that regulation of nickel emissions from oil-based plants is not "appropriate and necessary."

In addition to the CAMR, EPA published a final Agency action which reversed the regulatory finding that it issued in December 2000.

On February 8, 2008, the U.S. Court of Appeals for the District of Columbia Circuit issued an opinion in a case, which was initiated by 15 states and other groups, challenging the CAMR and EPA's decision to "delist" mercury as a hazardous air pollutant. The Court held that EPA's reversal of the December 2000 regulatory finding was unlawful. The Court vacated both the reversal and the CAMR, and sent the CAMR back to EPA for reconsideration.

As a result of the Court's decision, it is likely that EPA will develop a Maximum Achievable Control Technology (MACT) standard, which would require every oil- and coal-based power plant to install mercury-specific controls. A new EPA rulemaking could take several years to finalize and might not require emission reductions for more than five years.

History of Mercury Regulation

In December 20, 2000, the Environmental Protection Agency (EPA) issued a “regulatory determination” under the Clean Air Act that regulation of mercury is “appropriate and necessary” for coal- and oil-fired power plants.”

In 2001-2002, EPA held meetings of a Utility MACT Working Group under the Clean Air Act Advisory Committee (CAAAC).  In October 2002, the final report of the Working Group was submitted to the CAAAC. 

On December 15, 2003, EPA issued proposed mercury rules for coal- and oil-based power plants. The proposed mercury rules primarily focus on coal-based power plants, and include two alternative control plans:

  • A proven, market-based cap-and-trade approach that would require emissions reductions from new and existing facilities in two phases, or
  • A MACT standard.

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