Legislative Bulletin

JUNE 8, 2001



First a state, now a regional 
approach is launched to fight
smog-causing ozone in the air


As the House was considering the so-called clean smokestacks bill to solve North Carolina’s smoggy-air problem by imposing strict emissions controls on 14 coal-fired power plants, Gov. Mike Easley was in Tennessee on Tuesday to sign an accord with the governors of Georgia and Tennessee to foster a regional approach to air quality.

"Pollution does not respect state borders,” Easley said at the third annual Governor's Summit on Mountain Air Quality. “In order to realize our goals of clean air in North Carolina and the Southeast, we must tackle pollution problems at a regional level. Only through working together can we expect to have long-term significant improvements in our air quality."

Easley, Tennessee Gov. Don Sundquist and Georgia Gov. Roy Barnes signed the "Southern Air Principles," which directs environmental chiefs in the three states to formulate a joint strategy by March of next year. The summit was hosted by Sundquist at Gatlinburg. Gov. Jim Hunt first committed North Carolina to the regional compact three years ago.

The June 5 accord says "each state must do its part to protect to improve air quality," but "regional air quality problems must be addressed through regional approaches that address each state's unique qualities and needs." The agreement addresses several pollutant sources: nitrogen oxides, sulfur dioxide and mercury from coal-fired power plants, as well as transportation and energy policies. Read the full text of the agreement signed by the three governors.

At the governors’ meeting, Easley was quick to point out that North Carolina has been doing its part to battle air pollution and is considering imposing among the nation’s toughest emissions standards. "In North Carolina, our legislature is considering an innovative clean air bill that will protect and enhance the quality of North Carolina air by requiring significant reductions in the pollutants that cause ground level ozone, acid rain and haze,” Easley said, referring to the Senate passed bill now in the House, S.1078 Improve Air Quality/Electric Utilities.

“It is cheaper to clean smokestacks than it is to clean lungs.” Easley emphasized, then added that such far-reaching state plans won’t work effectively unless neighboring states do the same.

As Easley was speaking in Tennessee, the House Public Utilities Committee was meeting to hear additional testimony on the S. 1078, the clean smokestacks bill sponsored in the Senate by Sen. Steve Metcalf (D-Buncombe). The committee has met twice a week for the last three weeks to discuss the proposed legislation, which would force CP&L and Duke Power to spend some $2.2 billion over the next few years to radically re-engineer their 14 coal-fired plants in North Carolina – all of which are 30-40 years ago, to meet strict new emissions standards.

While most groups support the cleaner-air goal of the legislation, there’s controversy over who should pay for the $2.2 billion for the upgrades – the utilities and their shareholders or the public. The Senate legislation places the burden squarely on the ratepayers. Complicating the issue is that not all of the power produced at the plants is used here in North Carolina. Like most utilities, CP&L and Duke buy and sell power over the national grid, so there’s a question about whether N.C. ratepayers should be paying to clean up electricity sold in another state.

At its meeting Tuesday to consider the bill, the House Utilities Committee focused on the importance of a regional approach to air pollution, which Gov. Easley was striking with Tennessee and Georgia. Bill Ross, secretary of Environment, Health and Natural Resources, testified that a regional approach is essential, with each state taking steps to control air pollution within its own borders as well as in surrounding states. “This bill is an appropriate step for North Carolina to take in doing its part,” Ross said.

Several committee members stressed that it is important for the Tennessee Valley Authority to take steps to address air quality issues because of the pollution that wafts into North Carolina from TVA power plants. A representative from TVA will be asked to speak to the committee at its next meeting. The clean smokestacks bill requires CP&L and Duke Power to cut emissions of nitrogen oxide from 14 power plants 78 percent by 2009 and cut emissions of sulfur dioxide 73 percent by 2013.

NCCBI does not have a position on the legislation because the association membership is split on the issue. NCCBI President Phil Kirk and Vice President for Governmental Affairs Leslie Bevacqua are prepared to testify regarding the different perspectives of NCCBI members, including the concerns that some North Carolina businesses would experience significant increases in their power bills.


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