UBS Investment Research US Electric Utilities & IPPs Finalizing the HAP MACT Rules December 21, 2011 HAP MACT rules from EPA this afternoon are inline with expectations EPA’s finalized HAP MACT or MATS rules released this afternoon were inline with our expectations, largely leaving intact most of the impact of HAP MACT regulations. Tweaks to the final rule will slightly mitigate total capex; all in, proposed changes do not shift our retirement thesis. Notably, EPA backed away from a total particulate matter (PM) std. (incl. condensable particulates), opting for a filterable target (mitigating baghouse needs for some units). Other reforms provided for latitude around unit startup, and greater flexibility around facilitywide averaging of emissions (for sites w/ multiple units). The final rules also incorporate the 1.2lb/TBtu target for mercury (shy of the 1.4lb/Tbtu target the industry has strenuously pursued), previously updated by EPA from the proposal.(Read more view attachment below) |
READ THE NEWS >
