EPA finalizes rule to cut pollution at power plants

WASHINGTON (Reuters) - U.S. environmental regulators finalized a rule on Thursday to slash air pollution from coal-fired power plants in 28 states east of the Rocky Mountains.

The Environmental Protection Agency measure, known as the Cross State Air Pollution Rule, will add costs for some coal-fired power plants, but should cut healthcare bills for Americans as polluting emissions that flow across state lines are cut dramatically.

As winds move the pollution, it reacts in the atmosphere and contributes to harmful levels of smog and soot.

"No community should have to bear the burden of another community's polluters, or be powerless to prevent air pollution that leads to asthma, heart attacks and other harmful illnesses," said EPA Administrator Lisa Jackson.

Companies that could see higher costs include large coal burners Southern Co, Duke Energy and American Electric Power.

The EPA would reduce power plant sulfur dioxide emissions by 73 percent by 2014, from 2005 levels, when combined with state environmental laws. It will cut nitrogen oxide emissions by 54 percent by 2014.

Power plants have to start cutting their sulfur dioxide emissions in January 2012 and their nitrogen oxide emissions that May.

The agency said its rule will level the playing field for power plant operators that are already controlling these emissions by requiring more plants to take similar actions.

The new air requirements would prevent up to 34,000 premature deaths, the EPA said.

The new rule came about after a federal appeals court ordered the EPA to strengthen a similar clean air regulation issued during the Bush administration.

The measure is opposed by many Republicans in Congress who say it would kill jobs and could make transmission of electricity unreliable because it would force companies to shut some of their coal plants.

Republican lawmakers introduced legislation this week to limit EPA rules on power plants.

Susan Tierney, a managing principal at the Analysis Group, an organization of economic and financial consultants, said the argument that the rule will hurt transmission was a "red herring" because plants integral to power deliver would not be allowed to shut down.

She said only the oldest, least efficient and smaller coal plants would be shut as a result of rules to be issued this year by the EPA on power plants.

The EPA will take public comment on its rule for 45 days.

(Reporting by Tom Doggett and Timothy Gardner; Editing by David Gregorio)