Coal ash from power plants is safe for use in cement and wallboard, the U.S. Environmental Protection Agency said today in a long-delayed decision that may boost recycling of a major source of industrial waste.

The determination and an EPA court filing last month indicating it may not regulate ash as a hazardous waste will boost utilities and companies such as Headwaters Inc. (HW) that use the product. The EPA acted as Duke Energy Corp. (DUK) deals with a spill at a North Carolina coal-ash disposal pond that sent toxic arsenic, chromium and lead into a river. Recycling can help curb the number and use of coal-ash ponds, proponents say.

“We now finally seem to be heading down a path where we will have some certainty,” said John Ward, head of government affairs for the American Coal Ash Association, which represents companies using the material. “They are once again re-affirming their support for recycling.”

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