This Week in Review May 28 June 1, 2012

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1 This Week in Review May 28 June 1, 2012 (1) EPA Issues Final Better-than-BART Rule (May 31, 2012) EPA issued its final rule allowing trading programs under the Cross-State Air Pollution Rule (CSAPR) to take the place of source-by-source Best Available Retrofit Technology (BART) determinations under the regional haze program established in 1999; this allowance applies only to BART determinations for sulfur dioxide and nitrogen oxide emissions from electric generating units. EPA arrived at this decision based on its findings that trading programs under CSAPR achieve greater reasonable progress towards the national goal of achieving natural visibility conditions in Class I areas than source-specific BART in those states covered by the Transport Rule. EPA also included in this final rule a limited disapproval of regional haze State Implementation Plans (SIPs) in 14 states that relied on the Clean Air Interstate Rule to satisfy the regional haze BART requirements; the agency further finalized Federal Implementation Plans to replace reliance on CAIR with reliance on CSAPR in 12 states regional haze SIPs. For further information: and (2) Federal Court Orders EPA to Sign Proposed PM NAAQS by June 7 (June 1, 2012) The U.S. District Court for the District of Columbia Circuit ordered EPA to sign a proposed revised particulate matter (PM) National Ambient Air Quality Standard (NAAQS) by June 7, The case before the court, American Lung Association v. EPA (No. 1:12-cv-243), was filed by the American Lung Association and National Parks Conservation Association, along with the states of New York, California, Connecticut, Delaware, Maryland, Massachusetts, Oregon, Rhode Island, Vermont and Washington, to compel EPA to issue the revised NAAQS. In addition to setting a deadline of June 7 for the agency to sign a proposed rule, the court ordered EPA to expedite the rule s publication in the Federal Register and accept public comments for a period of nine weeks. A hearing on the timeline for issuance of the final revised PM NAAQS, during which the court has asked to hear from EPA Assistant Administrator for the Office of Air and Radiation Gina McCarthy, is scheduled for June 11, For further information: (3) EPA Denies Petition to Waive 2011 Cellulosic Biofuel Requirements (May 25, 2012) EPA advised three organizations representing the oil industry and one

2 2 refinery that the agency was denying their petitions seeking a retroactive waiver of the Renewable Fuel Standard for 2011 with respect to the cellulosic biofuel volume requirement of 6.6 million gallons. In its response to the petitioners American Petroleum Institute, National Petrochemical & Refiners Association, Western States Petroleum Association and Coffeyville Resources Refining & Marketing, LLC EPA states that their requests fail to meet the standards for review under section 307(d)(7)(B) of the Clean Air Act: "In all cases, the objections raised in the petition to reconsider either were or could have been raised during the comment period on the proposed rule, or are not of central relevance to the outcome of the rule because they do not provide substantial support for the argument that the Renewable Fuel Standard program regulations should be revised as suggested by petitioners." For further information: onwaiverresponse5812final.pdf and (4) Environmental Groups Oppose Cruise Industry s Proposed Alternative for Compliance with ECA Fuel Requirements Adopted by IMO (May 31, 2012) A dozen environmental organizations sent a letter to EPA Administrator Lisa Jackson offering strong support for timely implementation of the North American and U.S. Caribbean Emission Control Areas (ECAs) established by the International Maritime Organization (IMO) in At the same time, the groups articulated their opposition to attempts by the cruise line industry to allow an alternative for compliance with the fuel requirements in the North American ECA. Under the ECA, marine vessels operating within 200 miles of the East and West coasts of the U.S. are subject to a two-phased reduction in fuel sulfur levels. In the first phase, to begin in August 2012, fuel sulfur levels will drop from the current 30,000 parts per million (ppm) to 10,000 ppm; in the second phase, to begin in 2015, fuel sulfur levels will drop to 1,000 ppm. Primarily through their trade association the Cruise Line International Association (CLIA) cruise lines are objecting to the 2015 fuel requirement under ECA. Based on a recent CLIA economic analysis, the organization claims the fuel requirement would significantly reduce cruise itineraries in North America resulting in a reduction in passenger visits to and cruise line expenditures in ports of call and job losses in the U.S. and Canada. Citing an IMO provision that allows for alternative compliance methods provided such methods are at least as effective in terms of emissions reductions as that required by this Annex, CLIA is pressing for a population-weighted approach that would allow cruise ships to use fuel with a sulfur content in excess of the ECA limits in coastal areas and use cleaner low-sulfur fuels while at berth. The environmental community, however, states that a closer review of CLIA s economic analysis shows that it fails to adequately assess the costs of implementing the ECA regulation, oversimplifies market impacts, and ignores the program s significant benefits. Describing CLIA s proposal as flawed, the groups say it would impose a heavy and disparate burden on human health by exposing some communities to high levels of harmful pollution. Accordingly, they call upon EPA to implement the ECA standards on time, as they were adopted and state that [a]ny delay, weakening or exemption of these important clean air

3 3 standards puts all Americans at risk. For further information: (5) Federal Court Dismisses Children s Climate Change Lawsuit (May 31, 2012) The U.S. District Court for the District of Columbia Circuit dismissed a lawsuit brought by a number of children, along with the groups Kids v. Global Warming and WildEarth Guardians, asking the court to compel the federal government to take action to combat climate change. In Alec L., et al. v. Jackson, et al. (No. 1:11-cv (RLW)), plaintiffs charged that EPA and others within the federal government have an obligation to protect the atmosphere under the public trust doctrine. In dismissing the case, the court held that plaintiffs had not raised a federal question nor federal cause of action and therefore the federal court does not have jurisdiction over the case. For further information: (6) Rep. Jim Moran Introduces Resolution Urging House Action on Climate Change (June 1, 2012) Rep. Jim Moran (D-VA) introduced a resolution to spur House action on climate change. With a purpose of [e]xpressing the sense of the House of Representatives that the energy, environmental, and foreign policies of the United States should reflect appropriate understanding and sensitivity concerning issues related to climate change, as documented by credible scientific findings and as evidenced by the extreme weather events of recent years, Moran s resolution calls upon Congress to promptly introduce and enact legislation to reduce energy consumption, shift the nation s power supply strategy from a dependence on fossil fuels to renewable energy sources, capture and store carbon through improvements to forest and urban land management and increase understanding of the impact of the climate change already occurring. When introducing his resolution, Moran stated, When 95 percent of our carbon dioxide emissions come from fossil fuel use, we should assume a leadership role to address climate change. If we have the ability to take action to preserve our environment, on which the cornerstone of all life on Earth depends, and refuse to do so, we have failed our moral obligation to strive for equity and justice. Moran worked with a number of faith groups to draft the resolution, including the Friends Committee on National Legislation, Presbyterian Church USA Office of Public Witness, Franciscan Action Network and Citizens Climate Lobby. For further information: solution.pdf (7) Obama Administration Releases Federal Action Plan for Reducing Racial and Ethnic Asthma Disparities (May 31, 2012) The Obama Administration released the Coordinated Federal Action Plan to Reduce Racial and Ethnic Asthma Disparities, an action plan designed to coordinate federal efforts to improve asthma management and prevention. The action plan is a product of the Asthma Disparities Working Group, co-chaired by the White House Council on Environmental Quality, Department of Health and Human Services and Department of Housing and Urban Development, and outlines strategies for

4 4 reducing barriers to asthma care, building local capacity, targeting asthma services and accelerating prevention efforts. For further information: (8) EPA and DOJ Announce Major Settlement Agreement with Chemical Manufacturer SABIC (May 31, 2012) EPA and the U.S. Department of Justice (DOJ) announced a settlement agreement with SABIC Innovative Plastics US, LLC, and a subsidiary, SABIC Innovative Plastics Mt. Vernon, LLC, to resolve the companies alleged violations of Clean Air Act requirements to monitor and repair leaking equipment, demonstrate compliance with applicable regulations and report known violations. The agreement covers operations at SABIC chemical manufacturing facilities in Mt. Vernon, IN and Burkville, AL. As part of the settlement, SABIC agreed to pay an approximately $1-million civil penalty and to spend nearly $4 million to replace valves with low-emissions valves or valve packing material and control similar emissions from an oil/water separator. The company will also implement enhanced work practices to reduce fugitive emissions of hazardous air pollutants (HAPs) from leaking valves and pumps. Finally, SABIC agreed to a supplemental environmental project that will require the investment of an additional $1.3 million to control HAP emissions from certain process vents. EPA estimates that the settlement agreement will result in the reduction of up to tons per year of HAPs. The proposed settlement agreement was filed in the U.S. District Court for the Southern District of Indiana and is open for a 30-day public comment period. For further information: (9) EPA Amends NSPS for Process Heaters and Flares at Petroleum Refineries (June 1, 2012) EPA issued final amendments to New Source Performance Standards (NSPS) for process heaters and flares at petroleum refineries. The amendments for process heaters establish a concentration-based emission limit for nitrogen oxides (NOX), as well as a heating value-based emission limit for NOX. An alternative compliance option would allow process heaters that have difficulty meeting the emission standards to use a site-specific NOX emission limit. The amendments for flares establish standards that include those for work practice and monitoring, encouraging flare gas recovery. As part of the final rule, EPA is also lifting the stay of effectiveness of the process heater and flare requirements in the NSPS. For further information: (10) EPA Designates Three New Federal Equivalent Methods for Measuring NO2 and Lead in Ambient Air (June 1, 2012) EPA designated three new federal equivalent methods (FEMs) for use in measuring nitrogen dioxide (NO2) and lead (Pb) in the ambient air. The new NO2 FEM is identified as EQNA , Teledyne-Advanced Pollution Instrumentation, Inc. Model 200EUP or T200UP Chemiluminescence Nitrogen Oxides Analyzer. The two new Pb FEMS are identified as 1) EQL , Determination of Lead in TSP by Inductivity Coupled Plasma Mass Spectrometry (ICP-MS) with Hot Block Dilute Acid and Hydrogen Peroxide Filter Extraction and 2) EQL , Determination of

5 5 Lead in PM10 by Inductivity Coupled Plasma Mass Spectrometry (ICP-MS) with Hot Block Dilute Acid and Hydrogen Peroxide Filter Extraction. For further information: The Week Ahead Senate Committee on Commerce, Science and Transportation Hearing on the European Union Emissions Trading System, in Washington, DC June 6, 2012 Environmental Council of the States State Environmental Protection in 2012 Conference, in Washington, DC June 7-8, 2012 NACAA 444 North Capitol Street, NW, Suite 307 Washington, DC Tel: (202) /Fax: (202)