Monday, April 25, 2011

Fisher Capital Management Investment Solutions News Updates

Fisher Capital Management Investment Solutions: GOP Begins New Push to Delay EPA Rules on Toxic Power Plant Emissions

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Posted on : 26-04-2011 | By : Fisher Capital Management Investment News | In : business, finance, investing, investment, latest news
http://www.reuters.com/article/2011/04/20/idUS329099830920110420
By Lisa Song at SolveClimate
Wed Apr 20, 2011 2:30pm EDT
Republicans say installing long-overdue pollution controls would harm economic recovery, while advocates claim the rules would create jobs and save lives
By Lisa Song, SolveClimate News
Under pressure from industry, Congressional Republicans are urging the U.S. EPA to further delay long-overdue rules that would limit more than 80 air toxics emitted by coal-burning power plants, barely a month after the agency announced them.
At least one lawmaker, Rep. Edward Whitfield of Kentucky — a state which gets more than 90 percent of its power from coal — has said he will soon introduce legislation to postpone implementation of the regulations.
The rules in question are EPA’s air toxics standards to control mercury and other poisonous substances from power plants, as well as the Maximum Achievable Control Technology (MACT) standards that govern hazardous emissions from boilers and cement plants.
EPA released the nation’s first regulations for toxic power plant emissions on March 16. The boiler rules were announced in February 2011 and the cement standards in August 2010. All of the policies are mandated by the 1990 amendment to the Clean Air Act and originally set to be finalized in 2000.
According to EPA, the mercury and air toxics standards alone would prevent up to 17,000 premature deaths and 11,000 heart attacks each year.
Utilities and business groups say the anti-pollution rules would be too costly to implement and would force early shutdowns of power plants, threatening jobs and economic recovery.

During a hearing on the proposed EPA rulemakings last Friday by the House Energy and Commerce Committee’s Subcommittee on Energy and Power, Rep. Whitfield, the subcommittee chair, said Congress has the right to change the Clean Air Act amendment if necessary. Whitfield declared his intent last week to introduce legislation after the two-week recess ends on May 1 that would delay the regulations.
In an email to SolveClimate News, a spokesperson for Rep. Whitfield said the details of the draft bill are still being finalized and declined to comment on the length of the proposed delay.
“It’s quite clear that EPA…is determined to pass regulations to increase the cost of coal and make other energy sources more competitive,” Rep. Whitfield said at the hearing. “We need a national debate on the direction that the EPA is going and the method that they’re using to get there.”
Others on the subcommittee believe the country has waited long enough for the rules designed to protect public health.
“I’m not a math major,” said Rep. Bobby Rush (D-Ill.), “but if these were supposed to be completed in 2000 and it’s now 2011, then plant operators will have an almost 15-year delay in meeting these standards,” given that utilities have up to four years to comply.
‘Far Less Draconian’ than Many Feared
The holdup was due to a series of lawsuits and court orders.
The air toxics standards were designed to control 84 different air pollutants, including mercury, benzene and acid gases. When the Bush administration’s EPA first introduced an alternative mercury cap-and-trade system in 2004, which did not cover the other pollutants, environmentalists sued and won their case. EPA was under a court order to release the draft rule last month.
There was a lot of speculation over the years about how tough the standards would be, and whether utilities would have flexibility in complying with them.
They ended up being “far less draconian than many in the industry had feared,” energy policy expert Susan Tierney told SolveClimate News. For instance, there were concerns that EPA would force all power plants to use the same kind of pollution-control technology. Instead, utilities can choose from a variety of measures.
Tierney is managing principal at Analysis Group, a Boston-based energy consulting firm, and former assistant secretary for policy at the U.S. Department of Energy. She did not attend the hearing and is not directly involved with the EPA rules or related lawsuits.
GOP Says Not Trying to Repeal Rules
Michigan Republican Rep. Fred Upton, chair of the House Energy and Commerce Committee, said the goal should not be “to repeal these regulations [but to] advance them in a reasonable way” without raising electricity prices or reducing jobs.
Of the seven witnesses present at the hearing, five were utility and manufacturing representatives who expressed worry over the regulations. The remaining two — Michael Bradley, executive director of the nonprofit Clean Energy Group, and John Walke, director of the Natural Resources Defense Council’s (NRDC) Clean Air Program — urged the subcommittee to refrain from delay tactics.
EPA representatives were invited as witnesses but did not show up, prompting subcommittee member Rep. Joe Barton (R-Texas) to relabel the agency as the “Evaporating Personnel Administration.”
Rep. Rush countered that the EPA did not receive proper advance notice, and that the agency has very few employees with the expertise to act as witnesses. Friday’s hearing was the third in a week that requested EPA’s presence (an EPA representative attended just one of the three). In each case, the EPA had a week’s notice before the hearings took place.
‘Unreasonable’ Compliance Period
Under the new regulations, EPA would give utilities three years to install adequate pollution-control technologies.
Tom Fanning, chairman of the electric utility Southern Company and one of the panel’s witnesses, said the compliance period is “unreasonable.”
“We are very concerned … [and we] believe it could affect the reliability of power,” Fanning said, citing worries about costs, job losses and decreased capacity from power plant closures.
Bradley of the Clean Energy Group said industry has been expecting these regulations since 2000. “If there was any surprise, it was the degree of flexibility … While not perfect, [the regulations] are reasonable and consistent with the Clean Air Act.”
His comments echo a letter published in The Wall Street Journal late last year by eight utility executives voicing their support for the air toxics standards.
“The electric sector has known that these rules were coming,” the letter said. “Many companies, including ours, have already invested in modern air-pollution control technologies and cleaner and more efficient power plants.”
The EPA will give one-year extensions and possibly longer for plants that need extra time to comply, said Bradley. Some 60 percent of coal plants already have scrubbers so “we are not starting from scratch.”
Most of the control technologies can be installed in less than two years, he added. Companies can also average the emissions from multiple units to reduce the number of overall installations.
Citing a November 2010 letter from the trade group Institute of Clean Air Companies (ICAC), Bradley said the power industry has enough labor to get the job done.
ICAC Executive Director David Foerter composed the letter in response to an inquiry from Sen. Thomas Carper (D-Del.). In his letter, Foerter assured Carper that “based on a history of successes, we are now even more resolute that labor availability will in no way constrain the industry’s ability to fully and timely comply with the proposed … [air toxics] rules.
“Contrary to any concerns or rhetoric pointing to labor shortages, we would hope that efforts that clean the air also put Americans back to work.”
Pollution Controls Already In Use
Paul Miller, deputy director of Northeast States for Coordinated Air Use Management (NESCAUM), told SolveClimate News that many control technologies are already in use. “This isn’t Star Wars technology … [There's no] testing barrier.”
According to a new report by consulting firm M.J. Bradley and Associates and co-authored by Bradley and Tierney of Analysis Group, some 200,000 megawatts worth of coal plants already have, or are planning to install, adequate pollution controls. That covers about 60 percent of the total U.S. coal fleet, which generates 330,000 megawatts.
Another 20,000 to 30,000 megawatts are headed towards retirement, said Tierney. These plants are small, old and generally inefficient. They’re already under economic pressure due to low natural gas prices and may be “pushed over the edge” by the EPA rules, she said.
(Listen to SolveClimate News podcast episode: Coal Owners Retiring ‘Signficant Components of Their Fleets’)
“It’s like an old car that at some point loses a carburetor and it’s just not worth it to repair,” said Tierney.
In total, about 10 percent of coal capacity may be headed for retirement, said Tierney. Fanning of Southern Company said during his testimony the number is closer to 20 percent.
Bradley said that claim is an overestimate, adding that new pollution controls could limit the number of coal-plant casualties. “When we look at the flexibility included in the proposals along with some of the technologies deployed recently, it’s going to mitigate the number of retirements.”
He pointed to the technology of dry sorbent injection, an acid-gas capturing device designed for small coal plants. It’s relatively cheap, said Bradley, and already used in 43 plants.
While Fanning warned that shutdowns could lead to possible blackouts, Tierney said there is enough surplus capacity on a national scale to make up for lost power capacity.
On a regional level, Tierney said that some older and less efficient plants that might otherwise shut down would remain open to keep up adequate power supplies. In those cases, the EPA would give special extensions to allow them to reach compliance.
Costs of Control Technologies
The EPA estimates that control technologies would cost the industry nearly $11 billion a year, a price tag far outweighed by the up to $140 billion in annual health and economic benefits.
When placed in context, said Bradley, $11 billion is at most 10 percent of the $80 to $110 billion that the industry spends each year on capital and infrastructure projects.
Ratepayers would bear some of the cost of new pollution controls. On average, the EPA projects that retail electricity prices would increase 3.7 percent in 2015 and drop to a 1.9 percent increase by 2030.
Those percentage estimates are a “national average that will vary quite a bit from state to state,” said Bradley. But electricity rates also vary across different regions, so large percentage increases might have little impact in some parts of the country.
In addition to public health gains, maintaining EPA’s current timeline is in the interest of businesses, said Tierney, arguing that utilities need to know what to expect in order to make sound financial decisions.
“It would be terrible to postpone these [regulations] … not just because the toxins have been identified as problematic for a decade … but also from a business point of view.”
See Also:  EPA to Release Long-Awaited Rules on Toxic Power Plant Emissions This Week Report: Business Groups Say Clean Air Act Has Been a “Very Good Investment” Coal-Reliant Kentucky Takes First Steps to Solve Energy Dilemma Financial Shortfall at America’s First CCS Plant Highlights Absence of Carbon Price

Fisher Capital Management Corporate News: Travel warning for Japan downgraded

http://www.smh.com.au/travel/travel-news/travel-warning-for-japan-downgraded-20110418-1dkgi.html
April 18, 2011
Australia has eased its travel warning for Tokyo, more than a month after a magnitude 9.0 quake and tsunami hit Japan’s north, damaging nuclear power facilities and triggering fears of a meltdown.

Australia lowered the warning for Tokyo after the UN World Tourism Organisation Friday said there was no reason to avoid Japan as radiation levels at the nation’s airports and ports were well within safe limits.

“The level of advice for Tokyo and surrounding areas has been lowered to high degree of caution,” the advisory said in the advice released late Friday.
Advertisement: Story continues below

Australia’s overall advice for Japan urges travellers to exercise a “high degree of caution” — the third of five levels of warning which range from the lowest of ‘be alert to your own security’ to the highest of ‘do not travel’.

Citizens are still advised to avoid the Ibaraki, Tochigi, Iwate, Miyagi and Fukushima prefectures, including an exclusion zone around the damaged Fukushima Daiichi nuclear plant.
Australian airline Qantas has also announced it will resume direct services to Tokyo on April 19 — rather than operating its Narita services via Hong Kong.

In the days after the March 11 disaster, Qantas said it was maintaining its scheduled flights to Japan but its crews were overnighting in Hong Kong rather than the Japanese capital because of aftershocks and damage to infrastructure.
AFP

Fisher Capital Management Investment Solutions: Magnitude-6 quake jolts north-eastern Japan, no tsunami warning

http://www.monstersandcritics.com/news/asiapacific/news/article_1634762.php/Magnitude-6-quake-jolts-north-eastern-Japan-no-ts
unami-warning
Apr 23, 2011, 10:32 GMT
Tokyo – A magnitude-6 earthquake struck north-eastern Japan Saturday, the Meteorological Agency said.
No immediate casualties or damage were reported, and no tsunami warnings were issued.
No further damage was reported at the stricken Fukushima Daiichi Nuclear Power Station, which was crippled by the March 11 earthquake and tsunami.
The quake occurred at 7:13 pm (10:13 GMT) with an epicentre off the east coast of Iwate Prefecture at a depth of 10 kilometres, the agency said.
The same region was hit by the March 11 magnitude-9 earthquake that caused a tsunami. That disaster left 14,238 people dead and 12,228 missing, the National Police Agency said.

Fisher Capital Management Corporate News: FSA suffers staff exodus as it prepares for split

http://www.independent.co.uk/news/business/news/fsa-suffers-staff-exodus-as-it-prepares-for-split-2274569.html
By Sean Farrell
Monday, 25 April 2011
The Financial Services Authority (FSA) lost, on average, one employee a day in the past year, in a near doubling of departures ahead of the planned break-up of the City watchdog.
Figures obtained by The Independent in response to a Freedom of Information request show that 352 employees quit the FSA over the past 12 months, compared with 181 the year before.
The departures came as the FSA prepares to be split into two: by early 2013 a supervisory arm will be transferred to the Bank of England and a separate consumer-protection agency will be created. The rate of attrition raises questions about the FSA’s ability to manage the transition and to hold on to the staff it needs.

The FSA said last month that it expected a tough year and has frozen staff numbers and put initiatives on hold to cope with the workload of the split. Hector Sants, the chief executive, admitted he expected difficulties in hiring and keeping staff.
Peter Snowdon, a partner at the City law firm Norton Rose, said: “The market has picked up a bit and FSA people are always attractive to firms because they have inside knowledge. But this seems to confirm what one hears, which is that people think the chances open to them under the new regime aren’t that great and they are looking at other options.
“It is a concern for [City] firms if the FSA is losing experienced staff because there is an awful lot of change going on and those people can steady the ship.”
The departures have included some of the FSA’s most senior figures, including Sally Dewar, the former head of risk, who left in January.
Jon Pain, managing director of supervision, also left that month before his job was eliminated under the new regime.
Mr Sants was another that was going to quit the watchdog after opposing the break-up, but he was persuaded to stay on and join the Bank of England as a deputy governor to head the new supervisory arm. Between April and September last year, 187 people left the organisation – more than the entire previous year.
That period covers the months either side of the May general election during which the Chancellor attacked the FSA’s handling of the financial crisis and called for its abolition. He finally announced his plan for splitting the regulator in June. Departures peaked at 38 in October but have remained close to the 30 mark each month since. Only 16 people left last month but March is traditionally a quiet period because staff awarded bonuses lose their payouts if they quit before 1 April.
Lindsay Reid, a compliance and regulation specialist at the recruiter Michael Page Financial Services, said the rate of departures was set to pick up as the split gets nearer.
“By this time next year, the FSA will have a clearer idea of the new structures and they are already starting to align people for when the split happens,” Mr Reid said. “Employees are understandably anxious and we have seen a marked increase in the number of candidates enquiring about roles in the new structure and asking for career advice.”
The FSA said last year’s departure rate was comparable with 2006-2007 when 326 staff members left and 2007-2008 when there were 355 departures. In 2008-09, just 206 staff employees quit. The watchdog also pointed out that it has more staff than in those years after it increased employee numbers during the financial crisis.
Kathleen Reeves, human-resources director at the FSA, said: “Staff turnover levels fell during the crisis but are now starting to return to the level you would expect as recruitment picks up in the financial-services sector.”

Fisher Capital Management Investment Solutions: Farm Service Agency offers loan options

http://beta.bryancountynews.net/section/13/article/12677/
POSTED: April 25, 2011 12:11 p.m.
The U.S. Department of Agriculture has several loans available through its Farm Service Agency for farmers and others, including beginning and limited resource loans, direct and guaranteed loans and rural youth loans.
One program assists beginning farmers and/or members of socially disadvantaged groups to finance agricultural enterprises. Under these designated farm-loan programs, FSA can provide financing to eligible applicants through either direct or guaranteed loans. FSA defines a beginning farmer as a person who:
• Has operated a farm for 10 years or less.
• Will materially and substantially participate in the operation of the farm.
• Agrees to participate in a loan assessment, borrower training and financial-management program sponsored by FSA.
• Does not own a farm in excess of 30 percent of the county’s median size.
Each member of an entity must meet the eligibility requirements. Loan approval is not guaranteed.
Direct and guaranteed loans
The Farm Service Agency provides family farmers with loans to meet their farm-credit needs. For farmers who are having trouble getting the credit they need for their farms or who regularly borrow from FSA, direct and guaranteed loans currently are available.
Farm-ownership loans or farm-operating loans may be obtained as direct loans for a maximum of $300,000. Guaranteed loans can reach a maximum indebtedness of $1,119,000. Producers are encouraged to apply early so that a loan can be processed and funded in a timely manner.
Rural youth loans
The Farm Service Agency makes loans to rural youths to establish and operate income-producing projects in connection with 4-H clubs, FFA and other agricultural groups. Projects must be planned and operated with the help of the organization’s advisor, produce sufficient income to repay the loan and provide the youth with practical business and educational experience. The maximum loan amount is $5,000.
To be eligible for a youth loan, a person must:
• Be a citizen of the United States (which includes Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands) or a legal resident alien.
• Be 10-20 years old.
• Comply with FSA’s general eligibility requirements.
• Reside in a rural area, city or town with a population of 50,000 or fewer people.
• Be unable to get a loan from other sources.
• Conduct a modest income-producing project in a supervised program of work as outlined above.
• Demonstrate capability of planning, managing and operating the project under guidance and assistance from a project advisor. The project supervisor must recommend the project and the loan, along with providing adequate supervision.
The FSA Farm Loan Team located in Statesboro processes loans for Bulloch, Candler, Effingham, Bryan, Chatham, Emanuel, Evans, Jenkins, Screven, Tattnall and Toombs counties. The team can be contacted by calling (912) 871-2610, ext. 5.
For loan applications and more information, visit your local USDA Service Center or go towww.fsa.usda.gov.

Fisher Capital Management Corporate News: SEC CHARGES CALIF. COMPANY WITH $10 MILLION BOILER ROOM SCHEME

http://www.fa-mag.com/fa-news/7258-sec-charges-calif-company-with-10-ml-boiler-room-scheme.html
April 22, 2011
The Securities and Exchange Commission on Thursday charged a Santa Ana, Calif.-based e-mail marketing company, along with a father and twin sons who are the company’s executives, with defrauding investors in a $10 million boiler room scheme.

The SEC alleges that mUrgent Corporation, chief financial officer Vladislav Walter Bugarski, and his sons Vladimir Boris Bugarski (chief executive officer) and Aleksander Negovan Bugarski (chief operating officer) operated a boiler room to sell mUrgent stock.
Boiler room employees cold-called investors, used high-pressure sales tactics, and misrepresented to investors that mUrgent had a prospering business and would imminently conduct an initial public offering.  The SEC also alleges that mUrgent and the Bugarskis falsely told investors that stock sale proceeds would not be used to pay cash salaries to the Bugarskis.


“mUrgent falsely portrayed itself to investors as a successful company with imminent plans to go public,” said Rosalind R. Tyson, Director of the SEC’s Los Angeles Regional Office. “Instead, the Bugarskis used the company as their personal piggybank.”
According to the SEC’s complaint filed in federal court in Los Angeles, mUrgent and the Bugarskis conducted two unregistered securities offerings beginning in 2008 that raised nearly $10 million from at least 130 investors nationwide.

The Bugarskis misused investor money to fund more than $1.3 million in cash salary and bonuses for themselves. They also established a separate “slush fund” of more than $500,000, and used investor funds to pay for luxury cars and other personal expenses.
The SEC seeks permanent injunctions against mUrgent and the Bugarskis for violations of the antifraud, offering registration, and broker registration provisions of the federal securities laws, disgorgement, financial penalties, and an order prohibiting the Bugarskis from serving as officers or directors of any public company.

Fisher Capital Management Investment Solutions: GOP Begins New Push to Delay EPA Rules on Toxic Power Plant Emissions

http://www.reuters.com/article/2011/04/20/idUS329099830920110420
By Lisa Song at SolveClimate
Wed Apr 20, 2011 2:30pm EDT
Republicans say installing long-overdue pollution controls would harm economic recovery, while advocates claim the rules would create jobs and save lives
By Lisa Song, SolveClimate News
Under pressure from industry, Congressional Republicans are urging the U.S. EPA to further delay long-overdue rules that would limit more than 80 air toxics emitted by coal-burning power plants, barely a month after the agency announced them.
At least one lawmaker, Rep. Edward Whitfield of Kentucky — a state which gets more than 90 percent of its power from coal — has said he will soon introduce legislation to postpone implementation of the regulations.
The rules in question are EPA’s air toxics standards to control mercury and other poisonous substances from power plants, as well as the Maximum Achievable Control Technology (MACT) standards that govern hazardous emissions from boilers and cement plants.
EPA released the nation’s first regulations for toxic power plant emissions on March 16. The boiler rules were announced in February 2011 and the cement standards in August 2010. All of the policies are mandated by the 1990 amendment to the Clean Air Act and originally set to be finalized in 2000.
According to EPA, the mercury and air toxics standards alone would prevent up to 17,000 premature deaths and 11,000 heart attacks each year.
Utilities and business groups say the anti-pollution rules would be too costly to implement and would force early shutdowns of power plants, threatening jobs and economic recovery.

During a hearing on the proposed EPA rulemakings last Friday by the House Energy and Commerce Committee’s Subcommittee on Energy and Power, Rep. Whitfield, the subcommittee chair, said Congress has the right to change the Clean Air Act amendment if necessary. Whitfield declared his intent last week to introduce legislation after the two-week recess ends on May 1 that would delay the regulations.
In an email to SolveClimate News, a spokesperson for Rep. Whitfield said the details of the draft bill are still being finalized and declined to comment on the length of the proposed delay.
“It’s quite clear that EPA…is determined to pass regulations to increase the cost of coal and make other energy sources more competitive,” Rep. Whitfield said at the hearing. “We need a national debate on the direction that the EPA is going and the method that they’re using to get there.”
Others on the subcommittee believe the country has waited long enough for the rules designed to protect public health.
“I’m not a math major,” said Rep. Bobby Rush (D-Ill.), “but if these were supposed to be completed in 2000 and it’s now 2011, then plant operators will have an almost 15-year delay in meeting these standards,” given that utilities have up to four years to comply.
‘Far Less Draconian’ than Many Feared
The holdup was due to a series of lawsuits and court orders.
The air toxics standards were designed to control 84 different air pollutants, including mercury, benzene and acid gases. When the Bush administration’s EPA first introduced an alternative mercury cap-and-trade system in 2004, which did not cover the other pollutants, environmentalists sued and won their case. EPA was under a court order to release the draft rule last month.
There was a lot of speculation over the years about how tough the standards would be, and whether utilities would have flexibility in complying with them.
They ended up being “far less draconian than many in the industry had feared,” energy policy expert Susan Tierney told SolveClimate News. For instance, there were concerns that EPA would force all power plants to use the same kind of pollution-control technology. Instead, utilities can choose from a variety of measures.
Tierney is managing principal at Analysis Group, a Boston-based energy consulting firm, and former assistant secretary for policy at the U.S. Department of Energy. She did not attend the hearing and is not directly involved with the EPA rules or related lawsuits.
GOP Says Not Trying to Repeal Rules
Michigan Republican Rep. Fred Upton, chair of the House Energy and Commerce Committee, said the goal should not be “to repeal these regulations [but to] advance them in a reasonable way” without raising electricity prices or reducing jobs.
Of the seven witnesses present at the hearing, five were utility and manufacturing representatives who expressed worry over the regulations. The remaining two — Michael Bradley, executive director of the nonprofit Clean Energy Group, and John Walke, director of the Natural Resources Defense Council’s (NRDC) Clean Air Program — urged the subcommittee to refrain from delay tactics.
EPA representatives were invited as witnesses but did not show up, prompting subcommittee member Rep. Joe Barton (R-Texas) to relabel the agency as the “Evaporating Personnel Administration.”
Rep. Rush countered that the EPA did not receive proper advance notice, and that the agency has very few employees with the expertise to act as witnesses. Friday’s hearing was the third in a week that requested EPA’s presence (an EPA representative attended just one of the three). In each case, the EPA had a week’s notice before the hearings took place.
‘Unreasonable’ Compliance Period
Under the new regulations, EPA would give utilities three years to install adequate pollution-control technologies.
Tom Fanning, chairman of the electric utility Southern Company and one of the panel’s witnesses, said the compliance period is “unreasonable.”
“We are very concerned … [and we] believe it could affect the reliability of power,” Fanning said, citing worries about costs, job losses and decreased capacity from power plant closures.
Bradley of the Clean Energy Group said industry has been expecting these regulations since 2000. “If there was any surprise, it was the degree of flexibility … While not perfect, [the regulations] are reasonable and consistent with the Clean Air Act.”
His comments echo a letter published in The Wall Street Journal late last year by eight utility executives voicing their support for the air toxics standards.
“The electric sector has known that these rules were coming,” the letter said. “Many companies, including ours, have already invested in modern air-pollution control technologies and cleaner and more efficient power plants.”
The EPA will give one-year extensions and possibly longer for plants that need extra time to comply, said Bradley. Some 60 percent of coal plants already have scrubbers so “we are not starting from scratch.”
Most of the control technologies can be installed in less than two years, he added. Companies can also average the emissions from multiple units to reduce the number of overall installations.
Citing a November 2010 letter from the trade group Institute of Clean Air Companies (ICAC), Bradley said the power industry has enough labor to get the job done.
ICAC Executive Director David Foerter composed the letter in response to an inquiry from Sen. Thomas Carper (D-Del.). In his letter, Foerter assured Carper that “based on a history of successes, we are now even more resolute that labor availability will in no way constrain the industry’s ability to fully and timely comply with the proposed … [air toxics] rules.
“Contrary to any concerns or rhetoric pointing to labor shortages, we would hope that efforts that clean the air also put Americans back to work.”
Pollution Controls Already In Use
Paul Miller, deputy director of Northeast States for Coordinated Air Use Management (NESCAUM), told SolveClimate News that many control technologies are already in use. “This isn’t Star Wars technology … [There's no] testing barrier.”
According to a new report by consulting firm M.J. Bradley and Associates and co-authored by Bradley and Tierney of Analysis Group, some 200,000 megawatts worth of coal plants already have, or are planning to install, adequate pollution controls. That covers about 60 percent of the total U.S. coal fleet, which generates 330,000 megawatts.
Another 20,000 to 30,000 megawatts are headed towards retirement, said Tierney. These plants are small, old and generally inefficient. They’re already under economic pressure due to low natural gas prices and may be “pushed over the edge” by the EPA rules, she said.
(Listen to SolveClimate News podcast episode: Coal Owners Retiring ‘Signficant Components of Their Fleets’)
“It’s like an old car that at some point loses a carburetor and it’s just not worth it to repair,” said Tierney.
In total, about 10 percent of coal capacity may be headed for retirement, said Tierney. Fanning of Southern Company said during his testimony the number is closer to 20 percent.
Bradley said that claim is an overestimate, adding that new pollution controls could limit the number of coal-plant casualties. “When we look at the flexibility included in the proposals along with some of the technologies deployed recently, it’s going to mitigate the number of retirements.”
He pointed to the technology of dry sorbent injection, an acid-gas capturing device designed for small coal plants. It’s relatively cheap, said Bradley, and already used in 43 plants.
While Fanning warned that shutdowns could lead to possible blackouts, Tierney said there is enough surplus capacity on a national scale to make up for lost power capacity.
On a regional level, Tierney said that some older and less efficient plants that might otherwise shut down would remain open to keep up adequate power supplies. In those cases, the EPA would give special extensions to allow them to reach compliance.
Costs of Control Technologies
The EPA estimates that control technologies would cost the industry nearly $11 billion a year, a price tag far outweighed by the up to $140 billion in annual health and economic benefits.
When placed in context, said Bradley, $11 billion is at most 10 percent of the $80 to $110 billion that the industry spends each year on capital and infrastructure projects.
Ratepayers would bear some of the cost of new pollution controls. On average, the EPA projects that retail electricity prices would increase 3.7 percent in 2015 and drop to a 1.9 percent increase by 2030.
Those percentage estimates are a “national average that will vary quite a bit from state to state,” said Bradley. But electricity rates also vary across different regions, so large percentage increases might have little impact in some parts of the country.
In addition to public health gains, maintaining EPA’s current timeline is in the interest of businesses, said Tierney, arguing that utilities need to know what to expect in order to make sound financial decisions.
“It would be terrible to postpone these [regulations] … not just because the toxins have been identified as problematic for a decade … but also from a business point of view.”
See Also:  EPA to Release Long-Awaited Rules on Toxic Power Plant Emissions This Week Report: Business Groups Say Clean Air Act Has Been a “Very Good Investment” Coal-Reliant Kentucky Takes First Steps to Solve Energy Dilemma Financial Shortfall at America’s First CCS Plant Highlights Absence of Carbon Price