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MYTH: EPA's interpretation of Clean Air Act New Source Review requirements makes it hard for power companies to expand capacity and meet the demand for electricity.

FACT: Expansion of capacity has been rapid, outstripping demand to the point where some projects are being delayed or postponed.  In 1999 and 2000, EPA brought lawsuits against nine power companies for violating NSR requirements. Since then, the U.S. has seen a record expansion of power driven by deregulation, according to the Department of Energy:

"The deregulation of the generation of electricity was followed by a great increase in plans to construct new power plants, as the demand for electricity increased. During the past several years, there have been significant increases in new plant capacity additions, with 2001 being a record year for new capacity additions. (Emphasis added). With the demand expected to be considerably less than the amount of initially proposed new capacity construction over the next several years, many of these plans are gradually being delayed or canceled."

Nearly 48,000 megawatts of new electricity generation capacity (nameplate) came on line in 2001, about ¾ from non-utility providers. This increase in capacity supports the position of the State and Territorial Air Pollution Program Administrators, expressed in a letter to EPA on July 27 last year, that New Source Review has not interfered with efficiency improvements:

"[T]he information we have received from state and local permitting agencies throughout the nation indicates that the current NSR process does not prevent sources from expanding their capacity or improving efficiency. We base our comments on the hundreds of years of combined experience that we share as state and local permitting authorities."(Emphasis added)