Associated Press Newswires
Copyright 2002. The Associated Press. All Rights Reserved.

Monday, June 17, 2002

Report: North American air quality at risk from power plant construction

OTTAWA (AP) - North America's air quality could be threatened by
emissions from hundreds of new power plants over the next five years if
governments do not revise their regulatory powers, an international
commission warned Monday.

The North American Commission for Environmental Cooperation said in a
report that about 2,000 plant are proposed, most of them in the United
States. It said the plants would boost the continent's electricity
capacity by 50 percent but also pose major environmental challenges.

Even if fewer plants are built, there will still be a major expansion
of capacity, with the risk that much of it will favor cheap - but
high-polluting - coal, the report suggests.

The commission - created by Canada, Mexico and the United States to
study environmental issues related to the North American Free Trade
Agreement - called for strict national emissions standards and closer
cooperation among countries in assessing air quality risks.

North American power plants currently are regulated by national as
well as state and provincial laws, the report said. But laws are not
uniform either on a state-by-state basis or from one nation to another.
For example, Canada has no equivalent to the U.S. Clean Air Act setting
air quality standards.

Deregulation already has brought a dramatic decline in the amount of
money electricity generators spend on energy conservation, the report
said. It estimated electric utilities cut their spending from $2.4
billion in 1995 to $1.4 billion in 1999.

"It is clear that these reductions are due to uncertainties and risks
created by industry restructuring and in some cases by just the
expectation of energy restructuring in the future," commission executive
director Janine Ferretti said.

NAFTA governments project that the demand for electricity this decade
will increase by 66 percent in Mexico, 21 percent in the United States
and 14 percent in Canada.


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