This Week in Review June 27-July 1, 2011

Transcription

1 This Week in Review June 27-July 1, 2011 (1) NACAA Recommends Tighter Tier 3 Vehicle and Gasoline Standards (June 27, 2011) NACAA sent a letter to EPA Administrator Lisa Jackson urging timely agency action to enact a federal Tier 3 rule establishing another set of light-duty vehicle (LDV) emissions and gasoline standards to control conventional pollutants. NACAA states in its letter that, [a]n appropriately rigorous Tier 3 program based on a systems approach will yield critically needed reductions in nitrogen oxides (NOx), particulate matter (PM), non-methane organic gases (NMOG), toxic air pollutants and gasoline sulfur, greatly enabling state and local air quality agencies efforts to achieve and sustain clean air goals and protect public health and welfare. Accordingly, NACAA offers the following recommendations relative to the key components that should be included in a Tier 3 program: 1) fleet average tailpipe emissions standards for NOx, PM and NMOG consistent with those established by CARB in its LEV III programs, as well as more stringent standards for mobile source air toxics; 2) an average gasoline sulfur concentration of 10 parts per million or lower and a commensurate reduction in the gasoline sulfur cap should be considered in conjunction with this to expand the scope of technologies that can be used to achieve the envisioned tailpipe standards, improve catalyst performance in existing vehicles and also yield near-term air quality benefits in all areas of the country; 3) evaporative emissions standards consistent with California s zero-evaporative standard; 4) a new certification fuel that more closely matches real-world fuel by, among other things, including ethanol and accurately reflecting actual retail sulfur levels as well as the removal of methyl tertiary butyl ether; and 5) a fuel volatility standard that will maximize the effectiveness of zero-evaporative-emissions technology. [For further information: Air Web Clean Air News and Mobile Sources and Fuels Committee page] (2) Federal Court Approves Final Settlement with TVA (June 30, 2011) The U.S. District Court for the Eastern District of Tennessee approved the settlement reached in Alabama v. Tennessee Valley Authority, resolving allegations of violations of the Clean Air Act. The multi-billion dollar settlement, which was reached in April 2011, involves 11 TVA coal-fired power plants in Alabama, Kentucky and Tennessee and requires the company to invest an estimated $3 billion to $5 billion in new and upgraded pollution control technology. EPA estimates that the controls will reduce nitrogen dioxide emissions by 69 percent

2 2 and sulfur dioxide emissions by 67 percent from 2008 TVA emissions levels. The controls will also significantly reduce emissions of particulate matter and carbon dioxide. These emissions reductions are estimated to provide approximately $27 billion in annual health benefits. In addition to the pollution controls, TVA agreed to spend $350 on environmental projects, including $240 million to improve energy efficiency in low-income homes, $40 million to reduce greenhouse gas emissions through renewable energy projects, $8 million to improve public transportation through a clean diesel and electric vehicle project and $1 million paid to the National Park Service and National Forest Service for forest and park lands that have been affected by TVA emissions. Finally, TVA will pay a $10-million civil penalty, which will be shared with the states of Alabama, Kentucky and Tennessee. [For further information: 4be2-bd20-57e89b570c1a/TVA-signed-consent-decree.aspx] (3) OMB Concludes Benefits of Air Rules Far Outweigh Costs (June 24, 2011) The U.S. Office of Management and Budget (OMB) shows in a new report that, overall, the benefits resulting from federal regulations from 2000 to 2010 outweigh the costs, particularly with respect to EPA and its air rules. In 2011 Report to Congress on the Benefits and Costs of Federal Regulations and Unfunded Mandates on State, Local, and Tribal Entities, OMB states that the rules with the highest benefits and costs are those issued by EPA, especially pertaining to air quality. Specifically, EPA rules account for $81.8 billion to $550.7 billion in benefits and only $23.3 billion to $28.5 billion in costs. Of that amount, air rules were $77.3 billion to $535.1 billion in benefits for $19.2 billion to $24.1 billion in costs. OMB notes that air quality rules account for 95 to 97 percent of the benefits of EPA s regulations. Most of the benefits are attributed to reductions in fine particulate matter. In fact, the fine PM implementation rule alone would cost $7.3 billion per year, with benefits from $19 billion to $167 billion per year. [For further information: rt.pdf] (4) Michigan Issues Permit to Power Plant With GHG BACT Limits (June 29, 2011) The Michigan Department of Environmental Quality approved a permit to install a 600-megawatt coal-fired steam electric power plant that includes Best Available Control Technology limits for greenhouse gas (GHG) emissions, as required under EPA s GHG Tailoring Rule. The permit requires each circulating fluidized bed (CFB) to emit no more than 2.1 pounds per kilowatt-hour gross output of carbon dioxide equivalent (CO2e) and for the two CFBs to emit no more than 6,024,107 tons per year of CO2e. The plants are permitted to burn up to 20 percent biomass. [For further information: (5) EPA Announces Final E15 Labeling Rule (June 28, 2011) EPA issued a final rule containing measures intended to mitigate misfueling of vehicles, engines and equipment with E15 (gasoline containing more than 10 volume percent (vol%) ethanol and up to 15 vol% ethanol). The rule puts in place requirements that a

3 3 special label be affixed to all fuel pumps dispensing E15 noting that the fuel is to be used only in 2001 and newer passenger vehicles and in flex-fuel vehicles; the rule also calls for a survey of retail stations to ensure compliance with the labeling requirements. In addition, the rule requires that product transfer documents accompany all ethanol-blended fuel that is transferred through the fuel distribution system and that these documents specify the fuel s ethanol content and Reid Vapor Pressure. [For further information: (6) Group of 15 Governors Writes to Administration Officials About Fuel Economy Standards (June 29, 2011) The Governors of 15 states sent a letter to EPA Administrator Lisa Jackson and U.S. Department of Transportation Secretary Ray LaHood to share their views regarding the federal agencies joint development of fuel economy standards for , particularly that Jackson and LaHood carefully consider a balanced and thoughtful approach. In particular, the Governors encourage EPA and DOT to adopt a single, national fuel economy standard that considers America s needs for increased fuel economy while preserving the choices for families and businesses to meet their transportation needs without sacrificing affordability, safety, or jobs..looking forward, technology improvements should continue to support increases in fuel economy and greenhouse gas standards. However, we recognize that overreaching regulations can place a significant cost burden on individuals, families and businesses in our states. Those signing the letter include the Governors of Alabama, Idaho, Indiana, Iowa, Kansas, Kentucky, Maine, Michigan, Mississippi, Nevada, Ohio, South Carolina, Tennessee, Utah and Virginia. [For further information: Air Web Mobile Sources and Fuels Committee page] (7) NACAA Sends Letter to Appropriations Leadership about Reduced Staffing Levels (June 28, 2011) NACAA wrote to the leadership of the House and Senate Subcommittees on Interior, Environment and Related Agencies reiterating the need for increased federal funding for state and local air agencies in FY 2012 and providing information about state and local agencies staffing and budget losses in recent years. NACAA included in the letter information gathered from a recent NACAA survey of the membership showing that agencies have experienced significant cuts in staffs and budgets, resulting in a host of programs that have been curtailed or eliminated. NACAA notes in its letter that many agencies have reduced their staffs during the last four years; been subject to furloughs; suffered decreased budgets; and curtailed critical activities including monitoring, permitting, inspections, toxics programs, public education and outreach. [For further information: Air Web Clean Air News and Program Funding Committee page] (8) NACAA Requests Involvement in EPA Development of Emission Estimation Methodologies for Air Emissions from AFOs (June 29, 2011) NACAA sent a letter to EPA requesting that the agency involve NACAA in developing emission estimation methodologies for air emissions from animal feeding operations (AFOs). EPA recently completed the National Air Emissions

4 4 Monitoring Study (NAEMS), which covers 24 sites at AFOs that raise pigs and broiler chickens, egg-laying operations and dairies. The sites were monitored for two years and EPA collected data for particulate matter, volatile organic compounds, hydrogen sulfide and ammonia. NAEMS data was made available to the public on January 13, EPA is now in the process of developing emission estimation methodologies that AFOs will use to determine whether their emissions exceed regulatory thresholds thus requiring them to apply for permits. In the letter, NACAA requests that the agency involve the association in developing the methodologies, since state and local air agencies will be affected by the methodologies EPA publishes (since they will determine who does or does not require a permit). NACAA also poses in the letter questions to EPA about the agency s process for developing the methodologies. [For further information: Air Web Agriculture Committee page] (9) NACAA Makes Recommendations to EPA on Draft Exceptional Events Guidance (June 30, 2011) In a letter to EPA Assistant Administrator Gina McCarthy, NACAA provided comments on the agency s draft Guidance on the Preparation of Demonstrations in Support of Requests to Exclude Ambient Air Quality Data Affected by High Winds under the Exceptional Events Rule. The association expresses appreciation for EPA s efforts to streamline the decisionmaking process and clarify expectations relative to the technical demonstrations states and localities need to provide when requesting that data from a high wind event be excluded and also provides recommendations related to four key policy areas that remain of considerable concern: 1) the inclusion of mandatory requirements in guidance; 2) the lack of a technically feasible technique for backing out that portion of the monitored data deemed to have resulted from the exceptional event; 3) the level of state and local resources and expertise EPA assumes is available and; 4) the lack of a dispute resolution mechanism. [For further information: Air Web Clean Air News and Criteria Pollutants Committee page] (10) EPA, Coast Guard to Enforce International Air Pollution Requirements for Ships (June 27, 2011) EPA and the U.S. Coast Guard (USCG) entered into an agreement to jointly enforce in U.S. waters an international treaty to regulate air pollution from ships. Annex VI to the International Maritime Organization s International Convention for the Prevention of Pollution from Ships (MARPOL) includes limits on NOx emissions and the amount of sulfur in maritime fuel; the standards apply to freighters, cruise ships and other large vessels operating within 200 nautical miles of the North American coast. EPA and USCG say they will take measures to promote compliance with the international regulations, including investigating potential violations and pursuing enforcement actions and penalties. [For further information: Air Web Mobile Sources and Fuels Committee page] (11) EPA Announces New Initiative to Reduce Emissions from Short-Haul Trucks that Service Ports (June 28, 2011) EPA announced a new initiative under its SmartWay program to assist dray trucks large diesel trucks used in ports to haul freight from cargo ships to nearby distribution centers in reducing

5 5 emissions. Under the voluntary SmartWay Drayage Program, carriers enter into an agreement with EPA to track and reduce, over a three-year period, emissions of particulate matter by 50 percent and nitrogen oxides by 25 percent below the industry average. Further, SmartWay shipping partners will commit to use the cleaner trucks to haul at least 75 percent of port freight. EPA will assist SmartWay drayage partners in developing and meeting their goals. [For further information: (12) Western Governors and NOAA Sign MOU to Promote Climate Adaptation in Western States (June 30, 2011) The Western Governors Association (WGA) and the National Oceanic and Atmospheric Administration signed a memorandum of understanding (MOU) to improve the development, coordination and dissemination of information that will help western states prepare for the impacts of climate change. As part of the MOU, the parties agree to focus first on two priorities: 1) disaster risk reduction focusing on the impact of extreme events and 2) improved science and climate information to support management of coastal, estuarine and marine resources important to achieving resilient communities and ecosystems. WGA represents the Governors of 19 western states and three U.S. Flag Pacific Islands. [For further information: (13) Western Climate Initiative Releases Proposed System for Tracking Compliance (June 28, 2011) The Western Climate Initiative (WCI) released its draft proposed design requirements for its administrative tracking system for determining compliance (called the Compliance Instrument Tracking System Service or CITSS). According to the document, the requirements are generic ones applicable to each jurisdiction participating in the WCI cap-and-trade program, but they do not include jurisdiction-specific customizations or service requirements. CITSS is the record of ownership of compliance instruments and will record information related to accounts, enable and record compliance instrument transfers, facilitate compliance verification and support market oversight through the collection of relevant information. [For further information: (14) California to Delay Launch of GHG Cap-and-Trade Program (June 29, 2011) California Air Resources Board (CARB) Chairman Mary Nichols testified before a California Senate Committee that the state will delay the compliance requirements of its greenhouse gas (GHG) cap-and-trade program for a year. She testified that CARB is proceeding to finalize the cap-and-trade rule, and in light of the importance of this regulation to the success of California s climate change program and the need for all necessary elements to be in place and fully functional, we are proposing to initiate the program in 2012, but start the requirements for compliance in Nichols said this would not affect the stringency of the program, as the 2012 cap was set at expected GHG emissions, nor would it change the amount of emissions reductions that the program will achieve. The GHG cap-and-trade program is a key element of California s plan for

6 6 achieving its target of reducing GHG emissions to 1990 levels by Late last week, a California appeals court ruled that CARB could continue developing its GHG cap-and-trade program while the court considers the state s appeal of a lower court decision that found fault with CARB s analysis of alternatives to capand-trade. The lower court ruling held that CARB failed to conduct an adequate analysis of alternatives to a GHG cap-and-trade program for achieving AB32 s GHG reduction targets; AB32 requires the state to reduce GHG emissions to 1990 levels by As reported in the June 13-17, 2011 edition of the Washington Update, even though CARB is appealing the lower court decision, CARB nevertheless released on June 13, 2011 a supplemental environmental analysis of five alternative means for meeting California s GHG reduction target. CARB is taking comment on the document until July 28, On August 24, 2011, the Board will vote on the overall Scoping Plan, including the new alternatives analysis. [For further information: (15) NOAA Releases State of the Climate in 2010 Report (June 28, 2011) The National Oceanic and Atmospheric Administration (NOAA) released its yearly report on climate indicators, notable climate events and other climate information from around the world. The 2010 report tracks 41 climate indicators four more than last year including temperature of the lower and upper atmosphere, precipitation, greenhouse gases, humidity, cloud cover, ocean temperature and salinity, sea ice, glaciers and snow cover. According to NOAA, the comprehensive analysis of indicators shows a continuation of the long-term trends scientists have seen over the last 50 years, consistent with global climate change. For example, 2010 was one of the two warmest years on record. The Arctic sea ice shrank to the third smallest area on record and the Greenland ice sheet melted at the highest rate since at least [For further information: (16) Coalition Says Higher CAFE Standards Will Create Jobs (June 30, 2011) A coalition of investors and environmental groups says that a 6-percent increase per year in the national Corporate Average Fuel Economy (CAFE) standards could help create 700,000 full-time jobs by This estimate is among the preliminary findings of the group Ceres, which is preparing a report to be released in late July. Among the jobs estimated to come from the tighter CAFE standards which would equal approximately 62 miles per gallon by 2025 are 60,000 in the auto industry. Ceres believes that an annual fuel economy increase of 6 percent would save consumers over $150 billion at the gas pump by Ceres describes itself as a nonprofit organization that leads a national coalition of investors, environmental organizations and other public interest groups working with companies to address sustainability challenges such as global climate change and water scarcity. [For further information: (17) EPA Extends Comment Period for Lead Smelting Rule (July 1, 2011) EPA announced a 21-day extension to the public comment period for a proposed rule to reduce lead and arsenic emissions from secondary lead smelters by 63

7 7 percent. The extension request came from the Association of Battery Recyclers. In announcing the extension, the agency noted that EPA finds this request to be reasonable due to the significant changes the proposal would make to the current rule. The proposal was published May 19, The new comment deadline is July 26, [For further information: 76 Federal Register 38591] (18) EPA Sets July 12 Hearing Date for Proposed 2012 Renewable Fuel Standards (June 28, 2011) EPA announced in the Federal Register (76 FR 37703) that it will hold a public hearing on July 12, 2011 to take testimony on the renewable fuel standards for 2012 and biomass-based diesel fuel volume for 2013 that it proposed on June 21 (see related article in June 20-24, 2011 Washington Update). The hearing will take place in Washington, DC; the public comment period on this proposal will remain open until August 11, [For further information: and The Week Ahead House Science, Space and Technology Subcommittee on Energy and Environment Hearing on Hitting the Ethanol Blend Wall: Examining the Science on E15, in Washington, DC July 7, 2011 NACAA 444 North Capitol Street, NW, Suite 307 Washington, DC Tel: (202) /Fax: (202) cleanair@4cleanair.org