This Week in Review August 29 September 2, 2011

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1 This Week in Review August 29 September 2, 2011 (1) President Obama Decides to Withdraw Reconsideration of Ozone NAAQS (September 2, 2011) President Barack Obama issued a statement saying that he has requested that EPA Administrator Lisa Jackson withdraw the reconsideration of the 2008 ozone NAAQS. He based his decision on the importance of reducing regulatory burdens and regulatory uncertainty. He noted that EPA began in 2006 a review of the science that would result in the reconsideration of the ozone standard in 2013 and that he did not support asking state and local governments to begin implementing a new standard that will soon be reconsidered. In his statement, he said his administration will continue to vigorously oppose efforts to weaken EPA s authority under the Clean Air Act or dismantle the progress we have made. Administrator Jackson issued a statement that EPA will revisit the ozone standard, in compliance with the Clean Air Act. [For further information: and d40/e41fbc47e7ff4f ff00552bf8!opendocument] (2) House Majority Leader Targets Job-Destroying Air Regulations for Repeal (August 29, 2011) House Majority Leader Eric Cantor (R-VA) issued a memorandum to House Republicans identifying the ten most harmful job-destroying regulations promulgated by the Obama administration and set a schedule for their repeal. Seven of the ten listed regulations are EPA rules proposed or finalized under the Clean Air Act. They include the Maximum Achievable Control Technology (MACT) requirements for utilities (Utility MACT); the Cross-State Air Pollution Rule (CSAPR); the Boiler MACT; the Cement MACT; the revised ozone NAAQS; forthcoming revisions to the particulate matter (PM) NAAQS (called the farm dust rule by Cantor); and EPA s forthcoming proposal to issue greenhouse gas (GHG) New Source Performance Standards (NSPS) for fossil fuel-fired power plants. The memo identifies expected electricity price increases, industry cost increases and jobs losses associated with these regulations but does not include the environmental benefits calculated by EPA for the proposed or final rules. Cantor s schedule for repealing the rules targets the Utility MACT and CSAPR for the week of September 19, the Boiler and Cement MACTs the week of

2 2 October 3, and the ozone NAAQS, PM NAAQS and GHG NSPS for later this winter. [For further information: Air Web Agriculture, Air Toxics, Criteria Pollutants and Global Warming Committee pages] (3) President Identifies Seven Proposed Rules Costing Over $1 Billion; House Speaker Responds Requesting Identification of the Over 200 Rules Projected to Cost Over $100 Million (August 30, 2011) In response to a letter from House Speaker John Boehner (R-OH), President Barack Obama identified seven proposed rules that are estimated to cost over $1 billion, three of which are EPA regulations under the Clean Air Act: the Maximum Achievable Control Technology (MACT) requirements for utilities (Utility MACT), the Boiler MACT and the revised ozone NAAQS. The letter from President Obama fails to include the expected benefits from these rules. For example, EPA estimates that the costs of the proposed Utility MACT will be approximately $11 billion annually, while the benefits will be $ billion per year. For the ozone NAAQS, if EPA were to set the standard at parts per million (ppm), the costs would range from an estimated $19 billion to $25 billion per year in 2020, while the value of health benefits of reducing ozone to ppm, according to EPA, would range from about $13 billion to $37 billion per year in Speaker Boehner responded by calling on the White House to publicly release cost estimates for all of the 219 economically significant new regulatory actions the Administration has planned. ( Economically significant regulations are those that are estimated to cost $100 million or more.) [For further information: and (4) EPA Requests Public Comment on Settlements in Suits Regarding Section 110 Submittals under the 2006 PM2.5 and Hour Ozone NAAQS (September 1, 2011) EPA is seeking public comments on a proposed settlement agreement and proposed consent decree in lawsuits regarding states alleged failure to submit adequate section 110(a)(2) SIPs for the hour ozone NAAQS and 2006 fine particulate matter (PM2.5) NAAQS, respectively. The proposed settlement agreement would require EPA either to promulgate a FIP, or to approve a SIP submission from the state in lieu thereof, addressing the applicable requirements of section 110(a)(2), for North Dakota, Hawaii, Alaska, Idaho, Oregon, Washington, Maryland, Virginia, Arkansas, Arizona, Florida and Georgia with regard to the hour ozone NAAQS. The proposed settlement agreement would also require EPA to take final action pursuant to section 110(k)(2) on the SIP submittals or portions of submittals addressing the applicable requirements of section 110(a)(2), for Maryland, Virginia, Arkansas, Oklahoma, Florida, Georgia, Nevada, North Carolina, Tennessee and Arizona with regard to the hour ozone NAAQS. In addition, the proposed settlement agreement obligates EPA to respond to a petition for rulemaking from the Sierra Club concerning existing provisions in SIPs related to excess emissions from sources during periods of startup, shutdown or malfunction that may be contrary to the Clean Air Act and

3 3 EPA's policies addressing such emissions. Under the consent decree, various deadlines have been established for EPA to take final action on section 110 SIPs for the 2007 PM2.5 NAAQS for Alabama, Connecticut, Florida, Mississippi, North Carolina, Tennessee, Indiana, Maine, Ohio, New Mexico, Delaware, Kentucky, Nevada, Arkansas, New Hampshire, South Carolina, Massachusetts, Arizona, Georgia and West Virginia. Written comments are due by October 3, [For further information: 76 Federal Register and 54465] (5) EPA s Science Advisory Board Seeks Nominations for Expert Panel to Review EPA s Development of Air Emission Estimating Methodologies for AFOs (September 1, 2011) EPA s Science Advisory Board (SAB) is seeking nominations for people to serve on an expert panel to review the agency s development of air emission estimating methodologies for animal feeding operations (AFOs). The SAB is seeking public nominations of nationally recognized experts with demonstrated expertise and experience in the following areas related to AFO air emission estimation methods: air emissions from broiler, dairy, egg layer and/or swine production animal feeding operations; air monitoring and detection methods; exposure assessment; environmental statistics; emission and statistical modeling; and uncertainty analysis. EPA is developing air emission estimating methodologies for AFOs based on monitoring data obtained in its National Air Emissions Monitoring Study (NAEMS) and data obtained through a call for information issued earlier this year. The NAEMS study monitored emissions at 24 sites in nine states over two years, covering broiler chickens, egg laying operations, dairy farms and swine farms. Nominations are due by September 22, [For further information: 76 Federal Register 54466] (6) Grid Operator in Eastern U.S. Concludes EPA Air Rules Do Not Pose an Overall Threat to Reliability (August 29, 2011) The PJM Interconnection, which is a regional transmission organization that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia., issued a report assessing the potential impact of EPA air rules on the reliability of electricity service in the region. The report concludes that no system-wide capacity problem is apparent in PJM from the announced retirements. However, localized reliability concerns may arise, says the report, given the location of particular units and the unique locational services they provide such as congestion management of particular transmission facilities or voltage support for the transmission system. The report also notes that replacing older with newer generation could improve reliability, since newer and more efficient units have lower outage rates, and newer resources, whether new generation, demand response or energy efficiency may also provide lower cost alternatives to achieve resource adequacy. [For further information:

4 4 (7) DOE Awards $41 Million to 16 Carbon Capture Projects at Coal-Fired Power Plants (August 29, 2011) DOE is awarding $41 million over the next three years to 16 projects aimed at developing advanced post-combustion technologies for capturing carbon dioxide (CO2) from coal-fired power plants. The projects are focused on reducing the energy and cost penalties associated with applying currently available carbon capture technologies to existing and new power plants. Post combustion CO2 capture can be applied to both new and existing plants by adding a "filter" that helps isolate the CO2 from the other gases. The DOE investments are spread among all three options for a filter membranes, solvents and sorbents. [For further information: Carbon_Capture_Projects_Selected.html] (8) State and Industry Groups Challenge Final Tribal NSR Rule (August 29, 2011) The Oklahoma Department of Environmental Quality (DEQ) filed a petition for review of EPA s final federal implementation plan (FIP) containing new requirements for implementing New Source Review (NSR) in Indian Country (76 Federal Register 38748). In Oklahoma Department of Environmental Quality v. EPA (No ), filed with the U.S. Court of Appeals for the District of Columbia Circuit, DEQ challenged EPA authority to issue a FIP for Indian Country nationwide. A second petition for review of the final rule was filed with the District of Columbia Circuit on August 30, 2011 by the American Petroleum Institute and Independent Petroleum Association of America, in American Petroleum Institute v. EPA (No ). Under the FIP, EPA regional offices will be responsible for implementing the rules unless the tribe chooses to accept delegation or develop and obtain approval of a Tribal Implementation Plan (TIP). The FIP contains two NSR rules: 1) a minor NSR rule that applies to new and modified small facilities and minor modifications on tribal lands; and 2) a nonattainment NSR rule that applies to new major sources or significant modifications in nonattainment areas located on tribal lands. [For further information: Air Web New Source Review Committee Page] The Week Ahead House Energy and Commerce Subcommittee on Energy and Power Hearing on EPA and the Cement Sector Act (H.R. 2250, the "EPA Regulatory Relief Act of 2011," and H.R. 2681, the "Cement Sector Regulatory Relief Act of 2011"), in Washington, DC -- September 8, 2011 House Natural Resources Committee Hearing on Creating American Jobs by Harnessing Our Resources: U.S. Offshore and Renewable Energy Production, in Washington, DC September 8, 2011 House Science, Space and Technology Energy and Environment Subcommittee Hearing on the Science Behind EPA s NAAQS: The Case of Ozone, in Washington, DC September 9, 2011

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