On a 5-1 vote, the Montana Board of Environmental Review said state regulators acted properly when they approved an air-quality permit without carbon-dioxide limits for the Highwood Generating Station.
The board is a quasi-judicial panel that reviews decisions by the Department of Environmental Quality and sets the state's environmental rules.
Last summer, the city of Missoula considered buying power from the group, but withdrew after a public outcry over the possible environmental impacts.
The board's action Friday rejected a request by the Montana Environmental Information Center, which said emissions of carbon dioxide, or CO2, are “subject to regulation” because of their role in global warming and likely future regulation.
CO2 emissions, created by burning coal and other fossil fuels, are considered the primary cause of global climate change.
Board members said they may have the authority to create new CO2 regulations for the state, but that the law doesn't allow the state to impose them retroactively on this plant at this time.
Yet board members, who are appointed by the governor, made it clear they expect CO2 to be regulated in the future - and that they might play a role in forming those regulations.
“I think we're all burying our heads in the sand if we don't think CO2 is going to be regulated in the future,” said Robin Shropshire, a board member from Helena.
“I bet there is going to be some great new technology in the next 10 years (to capture CO2), but we can't require (this plant) to do that (now),” said Joe Russell, a public health official from Kalispell and chairman of the board. “And that's too bad.”
Anne Hedges, program director for the Montana Environmental Information Center, called the board's decision “disappointing” and said her group expects to appeal the decision in court.
“The board followed the path of the Bush administration in deciding to delay action on the most important issue of our time,” she said. “This is an issue of critical importance nationwide, and we are prepared to take it all the way to the Supreme Court.”
Tim Gregori, general manager of Southern Montana Electric, the co-op developing the plant, said the board made a sound decision that will hold up in court.
Gregori also repeated the co-op's commitment to investigate technology that may capture some of the plant's CO2 emissions. The co-op said it will file documents with the board outlining those plans.
“That will validate that we're looking at (CO2 emissions) responsibly and genuinely to get a solution that is technically feasible,” he said. “We are not certain (a solution) exists, but we want to look at this thoroughly.”
The plant still has some hurdles to clear before it can be built.
Another hearing is scheduled before the Board of Environmental Review later this month on whether the air-quality permit properly regulates “fine particulate matter.”
Developers also said they're still working on plant financing. Gregori said he hopes financing for the plant can be in place by mid-year, with construction completed by 2012.
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