Current Status of Mercury Regulation

On December 16, 2011, the U.S. Environmental Protection Agency (EPA) finalized the first national Clean Air Act standards to reduce mercury and other emissins from coal- and oil-based power plants.

The Utility MACT rule seeks to reduce emissions of mercury, acid gases and non-mercury metals through Maximum Achievable Control Technology (MACT) standards under the Clean Air Act.  MACT standards are based on emission limitations achieved by the best performing 12 percent of existing sources, and cost cannot be considered.  The Utility MACT rule will require most coal plants to upgrade existing controls and/or install additional controls.

EPA estimates that there are approximately 1,400 units affected by the rule: approximately 1,100 existing coal-based units and 300 oil-based units at about 600 power plants.

Existing power plants generally will have up to four years if they need it to cmply with the rule.  This includes the three years provided to all sources by the Clean Air Act.  Under the Clean Air Act, state permitting authorities can also grant an additional year as needed for technology installation.  EPA expects this option to be broadly available.

History of Mercury Regulation

• On December 20, 2000, 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.  
• On March 15, 2005, EPA issued its final CAMR for coal-based power plants. The CAMR utilized a market-based cap-and-trade approach under section 111 of the 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. 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.
• On February 6, 2009, the Obama Administration indicated that it would accept the Court of Appeals' decision and would develop new MACT standards for the utility industry under section 112 of the Clean Air Act.
• In October 2009 EPA agreed to a proposed consent decree which required EPA to propose standards addressing mercury and other emissions by March 16, 2011 and finalize standards by November 16, 2011.
• On April 15, 2010 the consent decree was approved.
• On March 16, 2011,the EPA Administrator issued the Utility MACT proposal as per the consent decree.
• On December 16, 2011, EPA released the final Utility MACT rule.

Additional Resources

• EPA's Mercury Rule Web Page 
• EPA's Mercury Home Page