AF&PA Voices Concern Over New Source Performance Standard for Existing EGUs

Donna Harman

June 2, 2014 - American Forest & Paper Association President and CEO Donna Harman issued the following statement following the U.S. Environmental Protection Agency’s release of New Source Performance Standards (NSPS) for Existing Electric Generating Units (EGUs).

“While we are still reviewing what has just been released, we are disappointed that EPA decided, in the interim, to effectively treat these emissions the same as fossil fuel emissions. EPA appears to recognize the important role that biomass-derived fuels play in greenhouse gas (GHG) reduction strategies and that burning biomass for energy can yield climate benefits as compared to burning fossil fuels. Therefore, we hope EPA will reflect these principles in its upcoming biogenic carbon emissions accounting framework. Our industry is helping to reduce greenhouse gas emissions by making greater use of carbon-neutral biomass residuals to power our mills.

“We also are concerned about cost implications that these new rules could have for our industry as a significant utilities customer. The paper and wood products industry already spends over $5 billion a year on purchased electricity and faces the prospect of steep cost increases passed on from utilities who must comply with other Clean Air Act and Clean Water Act programs. These increased costs will adversely affect manufacturers’ global competitiveness and the jobs they provide.

“In addition to the indirect effects of these utility rules, we also face substantial capital investments due to other regulations that EPA is poised to issue that directly impact our industry. We believe that EPA, the administration, and lawmakers should consider the far-reaching implications that large utility rules have in the context of overall regulatory burden on American industry.”

SOURCE: American Forest & Paper Association