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Carol Raulston

FOR IMMEDIATE RELEASE
June 13, 2002

EPA'S New Source Review Recommendations Provide More Reliable and Affordable Electricity

"The recommendations announced today by EPA to improve the Clean Air Act's New Source Review (NSR) requirements have the potential to provide American consumers and businesses with more reliable and affordable electricity while continuing the nation's progress toward cleaner air," NMA President Jack Gerard said today in response to EPA's release of its recommendations for changes to the NSR program.

"The need for NSR reform has been recognized across a broad spectrum of policy makers, energy providers and users for many years. EPA's action today will allow power plants and industrial sources to upgrade and expand their capacity in a more certain regulatory environment without the constant threat of legal challenges, and it will give much needed certainty to investors as the nation and American businesses attempt to meet their growing energy needs," Gerard continued.

Numerous studies and comments to EPA highlighted the need for the recommendations released today, pointing to the prospects for steady deterioration of existing capacity and limited investment in the recovery of such capacity if the current situation were not corrected. It is also clear the NSR program has had the unintended consequence of discouraging efficiency and pollution control upgrades. Today's announcement streamlines the process for existing plants and generators that install pollution control equipment and provides an exclusion for facilities that install state-of-the-art controls.

"We firmly believe these recommendations, coupled with the Clean Coal Technology provisions in the energy legislation now before the Congress, provide a sound foundation for an energy and environmental strategy that will benefit all Americans," Gerard concluded.