EPA finalized its plan to require the coal-fired power plant near Farmington, to deploy selective catalytic reduction technology on all four units within five years.

In finalizing its plan, EPA has bypassed an alternative technology approved by the state that will meet the same federal visibility rules for a tenth of the cost, according to company officials.

The New Mexico Environmental Improvement Board in June approved a state proposal to require the installation of the lower cost option at San Juan, and the selective non-catalytic reduction technology will meet the federal visibility requirements of the federal Clean Air Act.

PNM generation vice president Pat Themig said the Clean Air Act gives each state the authority to implement a regional haze program appropriate for the state, and New Mexico exercised this authority when it approved its own plan in June.

"EPA’s decision would require an investment of $750m or more, while the same federal rules can be met with a different technology for $77 million," Themig said.

PNM is an energy holding company based in US.