April 17, 2006

Plan Would Reduce Emissions from Electric Utilities by 90 Percent

LANSING – Governor Jennifer M. Granholm today announced a proposal to reduce mercury emissions from Michigan power plants by 90 percent by 2015.  The plan is designed to protect the health of Michigan’s families and the environment from the harmful effects of mercury emissions.

“Michigan must take actions to protect its citizens and environment from mercury contamination, but we must do so in a way that balances energy, environment and the economy,” Granholm said. “Mercury poses a real and serious health concern for the people of Michigan.  We are ensuring that future generations can enjoy clean air and safe water.”

Under the new rule, Michigan power plants will have to reduce mercury emissions by 90 percent by 2015 based on a system-wide approach. The first phase would use the reduction in emissions authorized under the federal Clean Air Mercury Rule (CAMR). The second phase would go beyond the CAMR reductions to get to 90 percent.

The Governor asked that the rule take into account both technological and cost-based considerations. A utility would be given additional time to comply if it installs and operates mercury reduction technology, but upon testing is unable to demonstrate compliance with the required reduction or emission limits. Second, additional compliance time would be provided if a power plant demonstrates that the annualized incremental cost of mercury reduction technology to go beyond CAMR will exceed a specified percentage of the gross revenue from electric generation for the utility system.

In a letter to Department of Environmental Quality (DEQ) Director Steven E. Chester, the Governor also noted that the governors of Minnesota, Illinois, Pennsylvania and Georgia have all recently announced their intentions to reduce mercury emissions by 90 percent

“Mercury is a potent neurotoxin that is a significant health concern, in particular for children and women of child-bearing age,” Granholm said. 

The plan will be implemented by Director Chester, whose agency will draft a rule under Michigan’s Clean Air Act to achieve the emission reduction goals set forth by the Governor.  In her letter, Granholm directed that the rule should not allow interstate trading, but that it could include a utility system-wide approach as long as it would not result in “hot spot” mercury emissions that would place Michigan residents at risk

Director Chester cited the risk mercury poses to Michigan’s vast water and fishing resources that are critical to the state’s tourism efforts for economic development. 

“Our waters play a critical role in our economy, and in our success as a state,” said Director Chester.   “This new rule will protect our citizens, and improve our quality of life by making our waters safe to fish, swim, and boat in.”

Currently, all of Michigan’s inland lakes are under a statewide advisory limiting the consumption of fish due to mercury contamination.

Director Chester indicated that the DEQ would begin working on promulgating the rule by initiating a formal stakeholder group process to implement the Governor’s directive.