(From PR release of July 16 by the West Virginia Environmental Council)

Gov. Underwood's Ozone Reduction Plan will cost three dollars in health benefits for every dollar it saves utilities, according to a recent report circulated by the West Virginia Environmental Council.

According to the report, relaxing electric generator emissions limits for nitrogen oxides from EPA's proposed 0.15 lb/MMBtu to the 0.25 lb/MMBtu proposed in Underwood's plan would allow utilities to release an additional 326,000 tons, a 67 % increase over EPA's original proposal. A 326,000-ton nitrogen oxide increase is equivalent to 50,000,000 new cars at NLEV standards.

The increased levels of nitrogen oxides are predicted to increase ozone levels, a principle component of smog. Based on EPA estimate of benefits, this increase is expected to lead to an additional $3 billion in health costs. The cost to utilities to meet the more stringent standards in the EPA Plan is estimated at approximately $1 billion. To put the utility costs in perspective, the report compared the costs to utilities with costs to other industries to achieve comparable pollution reductions. It concluded that controls on other industries would cost at least five to ten times more than the controls on utilities. The report also evaluated the cost of utility controls in light of economic savings from utility deregulation. The incremental cost of the 0.15 emissions rate would cost less than 3 % of the benefits projected by the Energy Information Agency from full retail competition by 2005. The report also listed other health and environmental benefits from the more stringent standards including reduced acid rain, reduced water pollution, reduced global warming, and improved visibility. The value of these benefits was not included in economic estimates.

"Governor Underwood should withdraw his proposal and implement EPA’s Plan" said Jim Kotcon, President of the West Virginia Environmental Council. "It makes no sense to give up three dollars in benefits just to save one dollar for utilities. It is especially silly to do this when some of our counties are having difficulty meeting Clean Air standards because of pollution blowing in from other states."

EPA data show that Wood County has violated new standards for ozone five times already this year, while Cabell, Ohio and Kanawha counties have violated the standard twice. Areas that do not meet air pollution standards face severe federal sanction including restrictions on highway funds and new economic development.

"The worst part about Underwood's Plan is that people with asthma or respiratory problems must suffer to prevent a small cut in profits for out-of-state utilities." Added Kotcon. "Why should West Virginians and Americans throughout the eastern US have to suffer health problems? Why should West Virginians face economic sanctions just to help Ohio utilities?"

"Giant utilities, with the willing assistance of Gov. Underwood, have spread deceptive one-sided half-truths about the cost of clean air and have totally ignored the benefits." said Janet Fout, an activist with the Ohio Valley Environmental Coalition and WVEC member. "Their phony scare tactics just don't stand up under close examination. The report shows that EPA’s Plan is better for West Virginians than Governor Underwood’s plan." The report, Environmental and Economic Benefits of a Tighter Electric Generator NOx Cap (0.15 vs.0.25 lb/MMBtu), was prepared by E3 Ventures, Inc., a North Carolina consulting firm, for a collaborative effort between the Natural Resources Defense Council and a New Jersey utility and is available on the internet at www.e3ventures.com. For more info call James Kotcon (304)594-3322.