FOR IMMEDIATE RELEASE JULY 1, 1975 FEA ORDERS POWERPLANTS TO STOP USING OIL & NATURAL GAS In a major effort to convert many electric utilities to the use of coal, as required by Congress in the Energy Supply and Environmental Coordination Act of 1974 (ESECA), 25 utility companies have been ordered by the Federal Energy Administration to cease using oil or natural gas as their primary energy source at 74 powerplants located at 32 generating stations. The orders were issued yesterday following the previous issuances of notices of intent, public hearings and analysis of the resulting data. The program is considered essential to carrying out the President's commitment to reduce petroleum imports and to reduce the impact of natural gas shortages. The conversion of these powerplants could result in yearly savings of over 64 million barrels of oil and more than 88 million MCFs of natural gas. FEA Administrator Frank G. Zarb said, "American consumers are paying dear prices because of our increasing vulnerability and dependence on foreign oil. Unless our program for self-sufficiency succeeds, cartel nations are in a position to continue to increase prices paid by the American consumers." He added that the prohibition orders "are essential to encourage powerplants to use coal, our most abundant energy source, while preserving important environmental objectives." -more E-75-215; 01344, 04864, 05954, 01296 - 2 The next step is for the Environmental Protection Agency (EPA) to certify the date that each plant can burn coal and still meet air quality standards. EPA estimates that, under normal conditions, it would take three to six months to process each case from issuance of an FEA order. During this period FEA will be assessing the environmental impact of coal burning at each of the 32 generating stations. These assessments will result in either a Negative Determination of significant environmental impacts or an Environmental Impact Statement for each station. After EPA certification and the FEA environmental analysis, with respect to each affected generating station, a Notice of Effectiveness will be issued by FEA. |