The Natural Gas Supply Association (NGSA) voiced its support forfuel- and generation-neutral nitrogen oxide requirements proposedby the Environmental Protection Agency (EPA).

The EPA supplemental proposal is to equalize nitrogen oxide(NOx) emissions requirements for power generators, and itencourages states to adopt training programs to lower compliancecosts. The rule supplements with emissions trading the regulationof ozone movement and utility NOx among 22 Midwestern,southeastern, and northeastern states. In addition, thesupplemental proposed rule makes policy strides in the structureand implementation of trading programs – favoring a”generation-neutral” allocation system that promotes efficiency andrewards all low-emitting generators for their environmentalstewardship.

“In the past, many EPA clean-air regulations were structured sothat users of high NOx fuels, such as coal, were permitted higherlevels of emissions than were users of low-NOx fuels, such as gas,”said Bruce Craig, NGSA director of utility regulation andenvironmental affairs. “This proposal sets limits on a ‘fuel &generation-neutral’ basis that permits gas users to get credit forthe low-emitting properties of their fuel. The level playing field,established in this rulemaking, will go a long way towardeliminating the NOx emissions disparity that exists amonggenerators in the 22-state region today – lessening the politicaland competitive necessity to address air emissions as part ofelectricity restructuring legislation.”

NGSA said it also supports the EPA plan to cap NOx emissionseach state may allow generators to produce and then to grant thegenerators credits with which to comply with limits. Credits couldbe traded to other NOx sources. NGSA advocates an additionalprovision that would base the credits on the number of kilowatts ofelectricity produced – an output-based system rather than theinput-based system the EPA has used in the past that bases creditson the amount of fuel used.

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