This Week in Review August 27-31, 2012

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1 This Week in Review August 27-31, 2012 (1) EPA and NHTSA Issue Joint Final Rulemaking Establishing GHG Emissions and CAFE Standards for 2017 and Later Model Years Light-Duty Vehicles (August 28, 2012) EPA and the Department of Transportation s National Highway Traffic Safety Administration (NHTSA) issued a final rule establishing greenhouse gas (GHG) and Corporate Average Fuel Economy (CAFE) standards for cars and light-duty trucks for Model Years (MY) The standards will increase fuel economy for light-duty vehicles to the equivalent of 54.5 miles per gallon (mpg) by MY In addition to benefits achieved through the MY standards, which increased fuel economy for cars and light-duty trucks to the equivalent of 35.5 mpg, the MY standards are estimated to reduce oil consumption by approximately 4 billion barrels and reduce GHG emissions by 2 billion metric tons. Program flexibilities offered to auto manufacturers include: credit banking and trading; air conditioning improvement credits; off-cycle credits; incentives for electric vehicles, plug-in hybrid electric vehicles, fuel cell vehicles, and compressed natural gas vehicles; incentives for advanced technologies including hybridization for full-size pickup trucks; treatment of compressed natural gas, plug-in hybrid electric vehicles, and flexible fuel vehicles; and provisions for intermediate and small volume manufacturers. For further information: (2) NACAA Submits Comments on EPA s Proposed Revisions to the PM NAAQS (August 31, 2012) NACAA has submitted comments on EPA s proposed rule, National Ambient Air Quality Standards for Particulate Matter, which was published in the Federal Register on June 29, 2012 (77 Federal Register 38890). The association supported EPA s proposals to tighten the primary annual PM2.5 standard to a level in the range of micrograms per cubic meter (µg/m 3 ) and retain the primary 24-hour PM2.5 standard of 35 µg/m 3, as well as the agency s proposal to retain the current suite of secondary standards for PM2.5 and PM10 to address other non-visibility welfare effects. While NACAA offered no comments with regard to EPA s proposal to establish a new secondary visibility standard for PM2.5, the association noted several implementation concerns that should be addressed if the standard goes forward. These include focusing implementation of the secondary visibility standard primarily in urban areas, ensuring that it does not overlap or conflict with the Regional Haze

2 2 Program, and relying primarily on the Chemical Speciation Network, rather than the Interagency Monitoring of Protected Visual Environments Network, to provide associated monitoring data. In addition to those regarding the proposed standards, NACAA also provided comments relating to EPA s approach for implementing the revised standards, including supporting the agency s proposed transition provisions for the Prevention of Significant Deterioration program. Finally, NACAA provided detailed comments regarding EPA s proposed revisions to the PM2.5 monitoring provisions, including the near roadway network, data handling, and quality assurance. For further information: pdf (3) NACAA Comments on EPA s Draft Exceptional Events Guidance Documents (August 31, 2012) NACAA submitted comments to EPA on the agency s draft guidance documents regarding exceptional events, as published in the Federal Register on July 6, 2012 (77 FR 39959). The association s comments focus particularly on the draft guidance on excluding ambient air quality data affected by high winds, noting that NACAA provided feedback on a previous (May 2011) version of the draft High Winds Guidance on June 30, 2011, expressing appreciation for the agency s efforts and indentifying four key policy concerns. EPA s July 6, 2012 revised draft does not address any of the association s concerns. Accordingly, in the comments on the current draft, NACAA reiterates its concerns, which relate to 1) level of expertise and resources required of states and localities, 2) lack of a dispute resolution mechanism, 3) the inclusion of mandatory requirements in guidance and 4) the lack of a technically feasible technique for backing out that portion of the monitored data deemed to have resulted from an exceptional event. In addition, the association reminds EPA of the great importance to state and local air agencies of the fire guidance and fire policy, reiterating that we anxiously await the opportunity to review and comment on draft guidance on exceptional events affected by fires and the fire policy itself, which is long overdue. We look forward to having the chance, as soon as possible, to work collaboratively with EPA on this very important issue. For further information: pdf (4) Court Schedules Ozone Case Oral Arguments for November 16, 2012 (August 29, 2012) The U.S. Court of Appeals for the District of Columbia Circuit issued an order in which it scheduled oral argument in the case of State of Mississippi v. EPA (No ) for 9:30 AM on November 16, In the case in question, Petitioners have challenged EPA s parts-per-million ozone standard. For further information: (5) President Obama Signs Executive Order Encouraging Investment in Industrial Energy Efficiency (August 30, 2012) President Obama signed an Executive Order, Accelerating Investment in Industrial Energy Efficiency, meant to promote and facilitate investment in industrial energy efficiency, including

3 3 combined heat and power (CHP). The Executive Order sets a national goal of 40 gigawatts of new CHP capacity by 2020, which would represent a fifty percent increase from today s levels. To meet this goal, the Execute Order directs the Department of Energy, Environmental Protection Agency, Department of Commerce, and Department of Agriculture, in coordination with the National Economic Council, Domestic Policy Council, Council on Environmental Quality, and Office of Science and Technology Policy, to encourage investment in industrial energy efficiency by coordinating efforts at the federal level; providing policy and technical support to states, utilities, and owners and operators of industrial facilities; and providing incentives for the deployment of CHP and other types of clean energy. For further information: (6) EPA Agrees to Review NSPS for Kraft Pulp Mills under Proposed Consent Decree (August 27, 2012) Under a proposed consent decree filed with the U.S. District Court for the Northern District of California, EPA has agreed to a schedule for reviewing New Source Performance Standards (NSPS) for kraft pulp mills. The agreement was reached as a result of a lawsuit, Center for Biological Diversity v. EPA (No. C ), filed by environmental groups to compel EPA to take action regarding the NSPS, which was last reviewed in Under Clean Air Act section 111(b), the agency is required to review NSPS for new and modified sources every eight years. The proposed consent decree would require EPA to review, and if warranted, propose revisions to the NSPS by May 15, 2013; final action would be required by March 14, The agency will accept comments on the proposed consent decree for 30 days after publication in the Federal Register. For further information: itigation/clean_air_act/pdfs/cbd_signed_consent_decree.pdf (7) EPA Publishes Proposed Revisions to NSPS for Stationary Combustion Turbines (August 29, 2012) EPA published in the Federal Register proposed revisions to the New Source Performance Standards for stationary combustion turbines (77 FR 52554). Among the provisions of the proposal are ones to 1) maintain the current numerical standard for nitrogen dioxide (NOX) and specify that it applies during periods of startup, shutdown, and malfunction; 2) allow petitions for site specific NOX limits; 3) exempt facilities complying with sulfur dioxide (SO2) standards of performance for petroleum refineries from complying with the SO2 stationary combustion turbine standards; 4) exempt facilities complying with the SO2 and NOX standards in the municipal solid waste regulations from complying with the SO2 and NOX stationary combustion turbine standards; and 5) introduce additional areas of flexibility into the stationary combustion turbine NSPS. EPA will accept comments on the proposal through October 29, The proposed revisions are in response to a petition for reconsideration filed by the Utility Air Regulatory Group. For further information: /pdf/ pdf

4 4 (8) EPA Responds to Hurricane Isaac with Waiver of Fuel RVP Requirements in Louisiana Parishes (August 28, 2012) EPA Administrator Lisa P. Jackson sent a letter to Louisiana Governor Bobby Jindal advising him that the state s August 27, 2012 request for a waiver of the federal low-volatility gasoline requirement 7.8 pounds per square inch Reid Vapor Pressure in certain Louisiana parishes has been granted. The state made the request to address a fuel supply emergency caused by the then-impending landfall of Hurricane Isaac. EPA made the decision to grant the waiver in consultation with the U.S. Department of Energy. The waiver is in effect through September 6, For further information: (9) EPA Seeks Comment on RFS Waiver Requests (August 30, 2012) EPA announced through a notice published in the Federal Register (77 FR 52715) that the agency is seeking comments on two requests for a waiver of the Renewable Fuel Standard (RFS). The requests, made via letters sent to the EPA Administrator on August 13 and August 14, respectively, came from Arkansas Governor Mike Beebe and North Carolina Governor Beverly Perdue (see related article in August 13-17, 2012 Washington Update). In their requests, Governors Beebe and Perdue asked for a full or partial waiver of the ethanol mandate under the RFS. Both governors noted that while this year s serious drought may have contributed to the increased price of corn, the federal RFS requirement for ever increasing amounts of corn for fuel plays a role. The EPA Administrator is authorized under section 211(o)(7) of the Clean Air Act to waive the RFS for up to one year if the fuel requirements would severely harm the economy or environment of a state, a region or the nation. EPA will accept comments on the waiver requests through September 26, For further information: (10) ECOS Holds Its 2012 Annual Meeting in Colorado (August 27-29, 2012) The Environmental Council of the States (ECOS) held its 2012 Annual Meeting, August 27-29, 2012, in Colorado Springs, Colorado. One of the highlights of the meeting was a two and a half hour session on Preparing for a New Future: States and U.S. EPA Using Modern Technology to Enhance Environmental Results. The session, which was led by representatives of the ECOS/U.S. EPA e- Transactions Workgroup, included a roundtable discussion on how modern technologies can be used to improve environmental protection. The meeting also included a states-only roundtable discussion on the Clean Air Act and keynote presentations by the Honorable Bill Ritter, former Governor of the State of Colorado and Robert Perciasepe, EPA Deputy Administrator. In addition to the plenary sessions, several of the ECOS Committees (including Air) and subcommittees (including Climate and Energy) held meetings and adopted resolutions. For more information, including copies of the adopted resolutions:

5 5 The Week Ahead Labor Day September 3, 2012 NACAA 444 North Capitol Street, NW, Suite 307 Washington, DC Tel: (202) /Fax: (202)