Better air quality need not hinder economy

Most of us in the United States are so accustomed to modern conveniences that we fully expect the lights to turn on each and every time we flip the switch. In fact, it isn’t even something we contemplate until there’s a problem.

I’m sure that Californians, with a legendary reputation for enjoying modern convenience and advanced technology before the rest of the country, expected the same.

However, we all know too well that the residents in California cannot expect the lights to go on every time the switch is flipped. The problem is much more serious than simply sitting in the dark. Everything from heat, emergency services, traffic signals and the economy itself depends upon reliable, affordable energy.

Power blackouts that are damaging California’s economy and placing residents at risk would be even more devastating to Maine residents in the midst of a cold winter and could literally cripple our growing economy.

The Maine business community continues to work very hard with the current administration, legislators and state regulators to move our state toward a reasonable regulatory climate that protects the environment and allows our economy to thrive.

In recent years, Maine has made significant progress toward achieving that workable balance. However, all progress will certainly be lost if reliable and affordable energy, a very significant factor in a strong, healthy economy, is jeopardized.

Regulators would do well to ensure that our electric generating facilities are not severely disadvantaged by new rules, particularly those that hold Maine companies to a higher standard than their competitors.

Now pending before the Maine Board of Environmental Protection (BEP) is a proposed nitrogen oxide (NOx) rule that we should watch closely. NOx is a precursor to ozone that affects Maine’s air quality in the summer months.

The BEP is right to take action on the NOx issue to protect Maine’s air quality. New regional standards adopted by each state are an appropriate approach to reduce NOx emissions. The standard proposed by the regional Ozone Transport Commission provides a mechanism for achieving meaningful NOx reductions while enabling plants to operate economically.

Some have argued for a departure from a regional approach and urged Maine to “go it alone.” They are pressuring the BEP to adopt rules that would hold Maine’s largest electric generating plant to a much more restrictive standard than the rest of the region.

At the heart of this very important debate is whether or not the state should allow emissions trading, also known as a cap and trade program, as part of a NOx emissions reduction rule. The rule threatens to isolate Maine and will impact only Wyman Station, Maine’s largest power plant located in Yarmouth.

Not only is this plant located downwind of where most of our ozone problems exist, but scientific studies have shown that this plant is not having any measurable impact on ozone non-attainment in Maine.

After years of working with other Northeastern states on a coordinated approach to improving air quality, Maine must not discard one of the most effective pollution reduction techniques ever developed – emissions trading.

Environmental groups have called cap-and-trade programs, when correctly administered, “the least expensive, most effective environmental market incentive program ever developed.” Environmental Defense, a leading national non-profit organization, recently issued a report calling for wider use of the cap and trade model for NOx, based on its success in reducing SO2 emissions and curbing acid rain.

Trading is a successful and widely used practice to improve air quality. For a state like ours, where 90 percent of NOx in Maine is produced outside our borders, prohibiting emissions trading would doom meaningful efforts to improve air quality. It would place Maine companies in a competitive disadvantage and could threaten the reliability of the New England power generation network.

While it’s true that several new gas-fired plants are under construction, these plants won’t eliminate the need for the power and fuel diversity that Wyman Station provides to the region. The health of our economy depends upon a diverse energy supply.

Eliminating cap and trade from the new NOx rule is a high stakes gambit. For everyone in Maine who buys electricity, it could mean paying even higher prices for no return benefit in air quality and an increased risk of power shortages.

If state regulators are serious about improving Maine’s air quality and protecting Maine’s energy supply, they must not act in isolation. The BEP should maintain a level playing field for Maine’s companies and consumers and stay consistent with a regional approach that offers us meaningful air quality improvement.

Dana F. Connors is president of the Maine Chamber and Business Alliance.