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	<title>GlobalWarming.org &#187; carbon pollution rule</title>
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		<title>Gina McCarthy&#8217;s Responses to Sen. Vitter&#8217;s Questions Part I: Bait-and-Fuel-Switch</title>
		<link>http://www.globalwarming.org/2013/05/11/gina-mccarthys-responses-to-sen-vitters-questions-part-i-bait-and-fuel-switch/</link>
		<comments>http://www.globalwarming.org/2013/05/11/gina-mccarthys-responses-to-sen-vitters-questions-part-i-bait-and-fuel-switch/#comments</comments>
		<pubDate>Sun, 12 May 2013 03:20:08 +0000</pubDate>
		<dc:creator>Marlo Lewis</dc:creator>
				<category><![CDATA[Blog]]></category>
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		<category><![CDATA[Gina McCarthy]]></category>
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		<category><![CDATA[Sen. Lisa Murkowski]]></category>
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		<guid isPermaLink="false">http://www.globalwarming.org/?p=16726</guid>
		<description><![CDATA[Gina McCarthy &#8212; President Obama&#8217;s pick to succeed Lisa Jackson as EPA Administrator &#8212; is often described as a &#8220;straight shooter&#8221; and &#8220;honest broker.&#8221; As my colleague Anthony Ward and I explain in Forbes, McCarthy has a history of misleading Congress about the EPA&#8217;s greenhouse gas regulatory agenda. Specifically, McCarthy and the Air Office over which she [...]]]></description>
				<content:encoded><![CDATA[<p><a class="post_image_link" href="http://www.globalwarming.org/2013/05/11/gina-mccarthys-responses-to-sen-vitters-questions-part-i-bait-and-fuel-switch/" title="Permanent link to Gina McCarthy&#8217;s Responses to Sen. Vitter&#8217;s Questions Part I: Bait-and-Fuel-Switch"><img class="post_image alignright" src="http://www.globalwarming.org/wp-content/uploads/2013/05/Gina-McCarthy1.jpg" width="250" height="135" alt="Post image for Gina McCarthy&#8217;s Responses to Sen. Vitter&#8217;s Questions Part I: Bait-and-Fuel-Switch" /></a>
</p><p>Gina McCarthy &#8212; President Obama&#8217;s pick to succeed Lisa Jackson as EPA Administrator &#8212; is often described as a &#8220;<a href="http://www.bna.com/obama-names-mccarthy-n17179872671/">straight shooter</a>&#8221; and &#8220;<a href="http://www.eenews.net/eenewspm/2013/03/20/archive/13?terms=Roger+Martella+">honest broker</a>.&#8221; As my colleague Anthony Ward and I explain in <a href="http://www.forbes.com/sites/realspin/2013/03/12/epa-nominee-gina-mccarthy-has-a-history-of-misleading-congress/"><em>Forbes</em></a>, McCarthy has a history of misleading Congress about the EPA&#8217;s greenhouse gas regulatory agenda.</p>
<p>Specifically, McCarthy and the Air Office over which she presides gave Congress and the electric power sector false assurances that the EPA&#8217;s greenhouse gas regulations would not require utilities planning to build new coal-fired power plants to &#8220;fuel switch&#8221; to natural gas. <a href="http://oversight.house.gov/wp-content/uploads/2012/04/10-12-11-Subcommittee-on-Regulatory-Affairs-Stimulus-Oversight-and-Government-Spending-Hearing-Transcript.pdf">McCarthy also denied under oath</a> that greenhouse gas motor vehicle standards are &#8220;related to&#8221; fuel economy standards, even though anyone with her expertise must know that the former implicitly and substantially regulate fuel economy.</p>
<p>McCarthy and the Air Office&#8217;s misleading statements about fuel switching discredited critics who claimed the EPA was waging a war on coal and would, if left to its own devices, ban new coal generation. The fiction that greenhouse gas emission standards are unrelated to fuel economy standards gave the EPA legal cover to gin up a regulatory nightmare for auto makers &#8212; the prospect of a market-balkanizing, state-by-state, fuel-economy &#8221;<a href="http://www.nada.org/nr/rdonlyres/dbcc625e-2e8e-4291-8b23-b94c92aff7c4/0/patchworkproven.pdf">patchwork</a>&#8220; &#8211; just so the White House, in <a href="http://www.nytimes.com/gwire/2009/05/20/20greenwire-vow-of-silence-key-to-white-house-calif-fuel-e-12208.html">hush-hush</a> negotiations, could demand auto industry support for the administration&#8217;s motor vehicle mandates as the price for averting the dreaded patchwork. This is a <a href="http://www.fed-soc.org/publications/detail/epa-regulation-of-fuel-economy-congressional-intent-or-climate-coup">complicated tale</a>, which I will discuss in Part 2 of this series.</p>
<p>The bottom line is that if the EPA had not dissembled on fuel switching and not obfuscated on fuel economy, more Senators might have voted for legislative measures, sponsored by Sen. Lisa Murkowski (R-Alaska) in 2010 and Sen. James Inhofe (R-Okla.) in 2011, to rein in the agency. In addition to their well-publicized <a href="http://www.epw.senate.gov/public/index.cfm?FuseAction=Minority.PressReleases&amp;ContentRecord_id=f52a53ab-faa7-77e3-2e57-df15459b241b&amp;Region_id=&amp;Issue_id=">transparency concerns</a> about the EPA under the leadership of Lisa Jackson and Gina McCarthy, Senators should also have <em>separation of powers</em> concerns.</p>
<p>Earlier this week, Sen. David Vitter (R-La.), Ranking Member of the Senate Environment &amp; Public Works Committee, released a <a href="http://www.epw.senate.gov/public/index.cfm?FuseAction=Files.View&amp;FileStore_id=9a1465d3-1490-4788-95d0-7d178b3dc320">123 page document</a> containing McCarthy&#8217;s responses to hundreds of questions on a wide range of issues. In today&#8217;s post, I comment on McCarthy&#8217;s responses to Sen. Vitter&#8217;s questions about fuel switching. In Part 2 of this series, I will comment on McCarthy&#8217;s responses regarding the administration&#8217;s motor vehicle program.<span id="more-16726"></span></p>
<p>The fuel switching issue is somewhat arcane, so it may be helpful if I provide a quick overview before commenting on McCarthy&#8217;s answers.</p>
<p>In April 2010, at an event hosted by the Johns Hopkins School of Advanced International Studies, <a href="http://www.eenews.net/public/climatewire/print/2010/04/14/2">McCarthy stated</a> that best available control technology (BACT) standards for major greenhouse gas emitters would require only efficiency upgrades, not fuel switching from coal to gas. “We haven’t done it [fuel switching] in the past, and there’s been good reason why we haven’t done it in the past,” she reportedly said.</p>
<p>The Air Office&#8217;s permitting guidance for greenhouse gases, both as <a href="http://www.lrlaw.com/files/Uploads/Documents/GHG%20Permitting%20Guidance.pdf">proposed in November 2010</a> and as <a href="http://www.epa.gov/nsr/ghgdocs/ghgpermittingguidance.pdf">adopted in March 2011</a>, similarly states that the “initial list of control options for a BACT analysis does not need to include ‘clean fuel’ options that would fundamentally redefine the source.” In other words, coal power plants would not be lumped together with natural gas combined cycle (NGCC) power plants in the same industrial source category subject to the same emission standards. Accordingly, an applicant would not be required to “switch to a primary fuel type other than the type of fuel that an applicant proposes to use for its primary combustion process.”</p>
<p>Lest there be any confusion on this point, a <a href="http://www.globalwarming.org/wp-content/uploads/2012/04/EPA-QA-on-BACT.pdf">Q&amp;A document</a> published along with the March 2011 guidance asks whether “fuel switching (coal to natural gas) should be selected as BACT for a power plant?” The document answers: “No.” It states that BACT for carbon dioxide (CO2) should “consider the most energy efficient design,” but “does not necessarily require a different type of fuel from the one proposed.”</p>
<p>In March 2012, however, the EPA proposed a <a href="http://www.gpo.gov/fdsys/pkg/FR-2012-04-13/pdf/2012-7820.pdf">&#8216;Carbon Pollution’ Rule</a> that does exactly what McCarthy and the Air Office said the EPA would not do. The rule lumps coal power plants and NGCC plants into a single newly-minted industrial source category &#8212; &#8220;fossil fuel electric generating units.&#8221; Moreover, the rule requires fuel switching, proposing a new source performance standard (NSPS) &#8212; 1,000 lbs CO2/MWh &#8212; that nearly all new NGCC plants already meet (77 FR 22396) and exactly zero commercial coal power plants can meet.</p>
<p>What makes this <em>volta face</em> all the more unexpected is that BACT standards, which apply to individual facilities on a case-by-case basis, are generally more stringent than NSPS, which set minimum emission control standards for categories of industrial sources. In regulatory parlance, NSPS provide the &#8221;floor&#8221; for BACT determinations. If the EPA would not use BACT to require fuel switching, then it would seem unreasonable &#8211; even paranoid &#8211; to suspect the EPA of planning to use NSPS for that purpose.</p>
<p>The timeline of these actions is critical. In June 2010, the Senate voted on Sen. Murkowski’s resolution (<a href="http://www.openmarket.org/wp-content/uploads/2010/01/murkowski-resolution-text.pdf">S.J.Res.26</a>) to overturn the EPA’s Endangerment Rule, the prerequisite for all EPA global warming regulations. The resolution fell short by four votes (47-53). In April 2011, the Senate voted on Sen. Inhofe’s <a href="http://thomas.loc.gov/cgi-bin/bdquery/z?d112:sp183:">legislation</a> to overturn all EPA global warming regulations except those auto companies had already made investments to comply with. The bill failed on a 50-50 tie vote. Had McCarthy and the EPA been candid about their anti-coal agenda in 2010 and 2011, more Senators might have voted for those measures.</p>
<p>In any case, agencies are not supposed to provide false or misleading information to influence how Members of Congress vote.</p>
<p>Let&#8217;s now see how McCarthy addresses these issues. Vitter&#8217;s questions are in bold type, McCarthy&#8217;s responses are indented, my comments are in blue.</p>
<p><strong>BACT standards apply to individual sources on a case-by-case basis. They generally are more stringent – and by law may not be less stringent – than Clean Air Act new source performance standards (NSPS), which the EPA establishes for categories of industrial sources. In other words, NSPS are the “floor” or minimum emission control standards for BACT determinations. Is that correct?</strong></p>
<blockquote><p>Response: Yes. The Clean Air Act specifies that BACT for a source cannot be less stringent than an applicable NSPS. Thus, when EPA completes an NSPS for a source category, BACT determinations that follow for applicable sources would need to consider the levels of the pollutant standards and the supporting rationale of the NSPS.</p></blockquote>
<p><span style="color: #000080">Comment: The EPA&#8217;s &#8216;Carbon Pollution&#8217; Rule proposes NSPS for CO2 from &#8220;fossil fuel electric generating units.&#8221; The standard is 1,000 lbs CO2/MWh. The EPA estimates that most NGCC power plants already meet that standard, whereas the most efficient commercial coal power plants emit 1,800 lbs CO2/MWh (77 FR 22417).  </span></p>
<p><strong>If BACT does not require fuel-switching, we should have no reason to expect that NSPS would require fuel switching or “redefine the source” to impose identical CO2 control requirements on coal boilers and on gas turbines. Is that correct?</strong></p>
<blockquote><p>Response: EPA’s GHG Permitting Guidance (March 2011) says: “… a permitting authority retains the discretion to conduct a broader BACT analysis and to consider changes in the primary fuel in Step 1 of the analysis.” Thus, EPA never ruled out the possibility that a permitting agency could require that an applicant consider natural gas, or other cleaner fuels, when proposing a coal-fired EGU.</p></blockquote>
<p><span style="color: #000080">Comment: McCarthy omits the first word of the quoted sentence: &#8220;Ultimately.&#8221; The unexpurgated sentence reads: &#8220;<em>Ultimately</em>, a permitting authority retains the <em>discretion</em> to conduct a broader BACT analysis and to consider changes in the primary fuel in Step 1 of the analysis” (emphasis added). &#8221;Ultimately&#8221; suggests something that might happen several years down the road, not the agency’s next move, and then only as a matter of “discretion” in individual cases, not as the industry-wide default position. The guidance document&#8217;s weasel words, which occur in only one sentence out of a 96-page text, do not obviate the fact that McCarthy and the EPA misled Congress and industry about the scope of the agency&#8217;s regulatory ambition.</span></p>
<blockquote><p>[McCarthy continues:] However, it is important to note that under the proposed carbon pollution standard for new power plants, companies would not be required to build natural gas combined cycle units; they would be required to meet a standard of 1000 lbs/MWh, which can be met either through the use of natural gas or by burning coal along with carbon capture and storage [CCS].</p></blockquote>
<p><span style="color: #000080">Comment: This is a distinction without a difference. No commercial coal plants with carbon capture and storage exist, and none is being built without <a href="http://sequestration.mit.edu/tools/projects/kemper.html">substantial taxpayer support</a>. The <a href="http://www.eia.gov/oiaf/aeo/electricity_generation.html">levelized cost</a> of new coal plants already exceeds that of new NGCC plants, and “today’s CCS technologies would add around 80% to the cost of electricity for a new pulverized coal (PC) plant, and around 35% to the cost of electricity for a new advanced gasification-based (IGCC) plant,&#8221; according to the EPA (77 FR 22415). Since building an NGCC plant is far cheaper than building a coal plant with CCS, the proposed 1,000 lbs CO2/MWh standard is a de-facto requirement to fuel switch from coal to gas. Offering an alternative no one will choose because it is prohibitively costly does not make fuel switching optional. </span></p>
<blockquote><p>[McCarthy concludes:] The agency is still actively considering a wide range of comments on this issue, and any final decision will reflect careful consideration of the issue.</p></blockquote>
<p><span style="color: #000080">Comment: In other words, the agency is still trying to figure out how to tweak the NSPS in light of <a href="http://www.globalwarming.org/wp-content/uploads/2013/05/UARG-Comment-on-Carbon-Pollution-Rule.pdf">detailed legal criticism</a> so that the rule still puts the kibosh on new coal generation without being tossed out in court.</span></p>
<p><strong>In their guidance establishing what could be considered Best Available Control Technology (BACT) for regulating GHGs in the permitting process, EPA stated that fuel-switching from coal to natural gas would not and could not be considered BACT: Since NSPS are traditionally interpreted to set the BACT “floor” for permitting purposes, how can a NSPS that eliminates the ability to construct new coal units without the implementation of commercially infeasible carbon capture and storage (CCS) be consistent with EPA’s previous guidance?</strong></p>
<blockquote><p>Response: As explained in responses to related questions, the statement that “EPA stated that fuel-switching from coal to natural gas would not and could not be considered BACT” is not entirely correct. While EPA did not propose that CCS represented BSER [best system of emission reduction], EPA stated in the preamble of the proposed NSPS rule that “CCS is technologically feasible for implementation at new coal-fired power plants and its core components (CO2 capture, compression, transportation and storage) have already been implemented at commercial scale.” [77 FR 22414].</p></blockquote>
<p><span style="color: #000080"> Comment: This response does not address the criticism that even if one sentence of the guidance document anticipates that permitting agencies may &#8220;ultimately&#8221; exercise the &#8220;discretion&#8221; to require fuel switching in individual cases, the EPA gave no hint that <em>next year</em> it would require <em>all</em> new fossil fuel power plants to be either NGCC or non-economical coal with CCS. Note, too, that &#8220;implemented at commercial scale&#8221; is not the same as <em>commercially viable</em>, i.e., sustainable without taxpayer subsidies.</span></p>
<p><span style="color: #000080">McCarthy does not address the convoluted weirdness of the rule. <a href="//www.law.cornell.edu/uscode/text/42/7411"><span style="color: #000080">The Clean Air Act defines</span></a> “performance standard” as a “standard for emissions of air pollutants which reflects the degree of emission limitation achievable through the application of the best system of emission reduction which . . . the Administrator determines has been adequately demonstrated.” The EPA picked 1,000 lbs CO2/MWh as the standard because that is a typical emissions rate of new NGCC power plants. But NGCC is a type of power plant, not a system of emission reduction. Gas turbines have been &#8220;adequately demonstrated&#8221; only as power sources &#8211; not as emission reduction systems <em>for coal boil</em>ers. </span><span style="color: #000080">To my knowledge, the EPA has never before selected a performance standard such that one type of facility can comply <em>only by being something other than what it is</em>. </span></p>
<p><span style="color: #000080">Why propose something so contorted? The EPA does not anticipate any quantifiable climate or health benefits from the NSPS (77 FR 22430). The rule&#8217;s only discernible purpose is to ban construction of new coal generation. The greenhouse gas permitting guidance document concealed that purpose.</span></p>
<p><strong>The Air Office’s PSD and Title V Permitting Guidance for Greenhouse Gases, both as proposed in November 2010 and as adopted in March 2011, similarly states that the “initial list of control options for a BACT analysis does not need to include ‘clean fuel’ options that would fundamentally redefine the source.” In other words, an applicant would not be required to “switch to a primary fuel type other than the type of fuel that an applicant proposes to use for its primary combustion process.” In addition, a Q&amp;A document published along with March 2011 guidance asks whether “fuel switching  (coal to natural gas) should be selected as BACT for a power plant?” The document answers: “No.” It goes on to state that BACT for CO2 should “consider the most energy efficient design,” but “does not necessarily require a different type of fuel from the one proposed.” These documents suggest that the EPA will not require fuel switching in BACT determinations. Was that a reasonable conclusion for Congress and electric utilities to draw at the time?</strong></p>
<blockquote><p>Response: That is a reasonable interpretation, and EPA continues to believe that its BACT guidance is reasonable for the specific purposes for which the guidance is intended.<img title="More..." alt="" src="http://www.globalwarming.org/wp-includes/js/tinymce/plugins/wordpress/img/trans.gif" /></p></blockquote>
<p><span style="color: #000080">Comment: Bingo! If the conclusion that the EPA would not require fuel switching is a reasonable interpretation of the BACT guidance, then Congress and electric utilities had no reason to expect the agency to require fuel switching only one year later, much less do so via a form of regulation &#8212; NSPS &#8212; that is generally less stringent than BACT. In hindsight, the BACT guidance was the setup for a <em>bait-and-fuel-switch</em>.</span></p>
<p><span style="color: #000080">Some Senators wonder how they can trust Gina McCarthy to be a &#8220;straight shooter&#8221; as EPA administrator given the agency&#8217;s <a href="http://www.epw.senate.gov/public/index.cfm?FuseAction=Minority.Blogs&amp;ContentRecord_id=331eecf3-eba0-2412-32c3-6f6beef731d0&amp;Issue_id=">FOIA failures</a>, <a href="http://www.epw.senate.gov/public/index.cfm?FuseAction=Minority.Blogs&amp;ContentRecord_id=331eecf3-eba0-2412-32c3-6f6beef731d0&amp;Issue_id=">reliance on secret data in rulemakings</a>, and <a href="http://www.epw.senate.gov/public/index.cfm?FuseAction=Minority.Blogs&amp;ContentRecord_id=38b021a0-b096-a376-6e0f-3a95fab62e39&amp;Issue_id=">use of private email accounts to conduct official business</a>. These issues are significant but so is the agency&#8217;s trickery on greenhouse gas regulation of stationary sources. </span></p>
<p><span style="color: #000080">Note also that the proposed 1,000 lb CO2/MWh performance standard is substantially similar to the NSPS proposed in section 116 the <a href="http://www.gpo.gov/fdsys/pkg/BILLS-111hr2454pcs/pdf/BILLS-111hr2454pcs.pdf"><span style="color: #000080">Waxman-Markey cap-and-trade bill</span></a>, which would require a 50% reduction in CO2 emissions from new coal plants permitted before Jan. 2020. The Waxman-Markey legislation narrowly passed in the House but companion legislation died in the Senate. The &#8216;Carbon Pollution&#8217; Rule sure looks like an attempt to end-run the legislative process and enact a policy Congress has rejected</span>.</p>
<p><span style="color: #000080">Looking at this from a wider angle, Senators might ponder what would have happened if Reps. Waxman and Markey, instead of introducing a cap-and-trade bill, had introduced legislation authorizing the EPA to do exactly what it is doing now &#8212; regulate greenhouse gases through the Clean Air Act as it sees fit. Such a bill almost certainly would have been dead on arrival. Under the leadership of Lisa Jackson and Gina McCarthy, the EPA has morphed into a Super Legislature, &#8216;enacting&#8217; climate and fuel economy policies Congress has not approved and would reject if introduced as legislation and put to a vote. The Senate cannot confirm McCarthy as EPA Administrator without rewarding the agency&#8217;s regulatory overreach.</span></p>
<p><span style="color: #000080">Nor can it do so without encouraging the agency to fool and trick Congress, as it did during the Senate debates on the the Murkowski resolution and Inhofe legislation, when statements by McCarthy and the Air Office seemingly disavowed any ambition to “<a href="http://www.youtube.com/watch?v=DpTIhyMa-Nw"><span style="color: #000080">bankrupt</span></a>” investors in new coal power plants. Whatever their party affiliation or views on climate change, Senators should dislike being hoodwinked.</span></p>
<p>&nbsp;</p>
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		<title>Will the Supreme Court Review EPA&#8217;s Greenhouse Gas Regulations?</title>
		<link>http://www.globalwarming.org/2013/01/04/will-the-supreme-court-review-epas-greenhouse-gas-regulations/</link>
		<comments>http://www.globalwarming.org/2013/01/04/will-the-supreme-court-review-epas-greenhouse-gas-regulations/#comments</comments>
		<pubDate>Fri, 04 Jan 2013 20:47:20 +0000</pubDate>
		<dc:creator>Marlo Lewis</dc:creator>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[Features]]></category>
		<category><![CDATA[350.Org]]></category>
		<category><![CDATA[American Electric Power v Connecticut]]></category>
		<category><![CDATA[Brett Kavanaugh]]></category>
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		<category><![CDATA[Coalition for Responsible Regulation v. EPA]]></category>
		<category><![CDATA[David Tatel]]></category>
		<category><![CDATA[Endangerment Rule]]></category>
		<category><![CDATA[FDA v. Brown & Williamson]]></category>
		<category><![CDATA[Janice Brown]]></category>
		<category><![CDATA[Massachusetts v. EPA]]></category>
		<category><![CDATA[Tailoring Rule]]></category>
		<category><![CDATA[Tailpipe Rule]]></category>
		<category><![CDATA[triggering rule]]></category>

		<guid isPermaLink="false">http://www.globalwarming.org/?p=15655</guid>
		<description><![CDATA[Powerful dissenting opinions can sometimes persuade a higher court to review a lower court&#8217;s ruling. Massachusetts v. EPA (2007), the Supreme Court decision empowering the EPA to act as a super legislature and &#8216;enact&#8217; climate policy, is a prime example. In 2005, the D.C. Circuit Court of Appeals held that the Bush administration EPA properly exercised its discretion when [...]]]></description>
				<content:encoded><![CDATA[<p><a class="post_image_link" href="http://www.globalwarming.org/2013/01/04/will-the-supreme-court-review-epas-greenhouse-gas-regulations/" title="Permanent link to Will the Supreme Court Review EPA&#8217;s Greenhouse Gas Regulations?"><img class="post_image alignright" src="http://www.globalwarming.org/wp-content/uploads/2013/01/Janice-Rogers-Brown1.jpg" width="253" height="320" alt="Post image for Will the Supreme Court Review EPA&#8217;s Greenhouse Gas Regulations?" /></a>
</p><p>Powerful dissenting opinions can sometimes persuade a higher court to review a lower court&#8217;s ruling. <a href="http://www.law.cornell.edu/supct/html/05-1120.ZS.html"><em>Massachusetts v. EPA</em></a> (2007), the Supreme Court decision empowering the EPA to <a href="http://www.fed-soc.org/publications/detail/epa-regulation-of-fuel-economy-congressional-intent-or-climate-coup">act as a super legislature and &#8216;enact&#8217; climate policy</a>, is a prime example.</p>
<p>In 2005, the D.C. Circuit Court of Appeals held that the Bush administration EPA properly exercised its discretion when it <a href="http://yosemite.epa.gov/opa/admpress.nsf/fb36d84bf0a1390c8525701c005e4918/694c8f3b7c16ff6085256d900065fdad!OpenDocument">denied</a> a <a href="http://209.200.74.155/doc/ghgpet2.pdf">petition</a> by eco-litigation groups to regulate greenhouse gas (GHG) emissions from new motor vehicles under <a href="http://www.law.cornell.edu/uscode/text/42/7521">§202</a> of the Clean Air Act (CAA). I remember feeling relieved but disappointed. The 2-1 majority ducked the central issue, namely, whether the CAA authorizes the EPA to regulate GHGs as climate change agents. In contrast, <a href="http://www.cadc.uscourts.gov/internet/opinions.nsf/131F165AA3EA9E328525742B0055906B/$file/03-1361a.pdf">Judge David Tatel&#8217;s dissent</a> made a strong argument that the EPA does have the power to regulate GHGs and, consequently, has a duty to determine whether GHG emissions endanger public health or welfare. Tatel&#8217;s opinion was a key factor persuading the Supreme Court to hear the case.</p>
<p>The Court in <em>Massachusetts</em> ruled in favor of petitioners, setting the stage for the EPA&#8217;s <a href="http://www.epa.gov/climatechange/EPAactivities/regulatory-initiatives.html">ongoing, ever-expanding regulation of GHG emissions</a> from both mobile and stationary sources.</p>
<p>The EPA&#8217;s greenhouse regulatory surge, however, is not yet &#8216;settled law.&#8217; Recent strong dissenting opinions by two D.C. Circuit Court of Appeals judges may persuade the Supreme Court to review one or more of the agency&#8217;s GHG rules &#8212; or even reassess its ruling in <em>Mass. v. EPA</em>.<span id="more-15655"></span></p>
<p><em><strong>Mass. v. EPA and its Aftermath: A Refresher</strong></em></p>
<p>In <em>Mass. v. EPA</em>, the Supreme Court ruled that: (1) GHGs are &#8220;air pollutants&#8221; for regulatory purposes under the CAA; (2) the EPA must determine whether GHG emissions endanger public health and welfare (unless the agency provides statutory reasons why it cannot or will not undertake such an analysis); and (3) the agency must regulate GHG emissions from new motor vehicles if it determines such emissions endanger public health or welfare.</p>
<p>The rest, as they say, is history. The EPA issued its <a href="http://www.epa.gov/climatechange/Downloads/endangerment/Federal_Register-EPA-HQ-OAR-2009-0171-Dec.15-09.pdf">endangerment determination</a> in December 2009, compelling itself to regulate GHG emissions from new cars, and in May 2010, issued its <a href="http://www.gpo.gov/fdsys/pkg/FR-2010-05-07/pdf/2010-8159.pdf">GHG tailpipe rule</a>. The EPA has long held that once <em>any</em> air pollutant from <em>any</em> source is regulated under <em>any</em> part of the CAA, major stationary sources become &#8220;subject to regulation&#8221; under the Act&#8217;s Title I Prevention of Significant Deterioration (PSD) pre-construction permitting program and Title V operating permits program. The EPA reaffirmed that interpretation in its April 2010 <a href="http://www.epa.gov/region7/air/nsr/nsrmemos/co2recon_psd.pdf">triggering rule</a>.</p>
<p>Those rules, however, threatened to create a politically-explosive <a href="http://www.globalwarming.org/2011/09/27/how-absurd-is-regulating-greenhouse-gases-through-the-clean-air-act/">administrative quagmire</a>. Literally millions of non-industrial facilities emit enough carbon dioxide (CO2) to qualify as &#8220;major&#8221; sources under the Act&#8217;s statutory definitions (250 tons per year for PSD, 100 tons per year for Title V). The EPA estimated that applying the Act&#8217;s permitting programs to GHGs under the statutory definitions of &#8220;major&#8221; source would require the EPA and its state counterparts to process an estimated 81,000 PSD permits annually (instead of 280) and 6.1 million Title V permits annually (instead of 15,000). To handle this workload, agencies would have to hire an additional 320,000 full-time employees at a cost of $21 billion per year. Otherwise, ever-growing bottlenecks and delays would paralyze environmental enforcement and economic development alike.</p>
<p>To avoid such &#8220;<a href="http://www.globalwarming.org/2011/09/27/how-absurd-is-regulating-greenhouse-gases-through-the-clean-air-act/">absurd results</a>,&#8221; the EPA in July 2010 issued a <a href="http://www.gpo.gov/fdsys/pkg/FR-2012-07-12/pdf/2012-16704.pdf">tailoring rule</a> exempting small CO2 emitters from the permitting programs. The rule decrees that for GHGs, a &#8220;major&#8221; source is one that emits 100,000 tons per year, not 100/250 tons per year, as specified for &#8220;air pollutants&#8221; in the statute. Although agencies should have some interpretative discretion when statutory language is ambiguous, there is nothing unclear about &#8220;100 tons&#8221; or &#8220;250 tons&#8221;. <em>Tailoring</em> is bureauspeak for <em>amending</em>. The irony, of which the EPA seems unaware, is that tailoring is itself an &#8220;absurd result,&#8221; because agencies have no power under the U.S. Constitution to amend statutes.</p>
<p>In 2011 a coalition of industry groups, states, and non-profits petitioned the D.C. Circuit Court of Appeals to overturn all four GHG rules: endangerment, tailpipe, triggering, and tailoring. In June 2012, a 3-judge panel decided the case, <a href="http://www.eenews.net/assets/2012/06/26/document_gw_02.pdf"><em>Coalition for Responsible Regulation v. EPA</em></a>, in favor of the agency, upholding all four GHG rules. In August, coalition members <a href="http://www.nam.org/~/media/C2DA7F19B05A4C71B56924EBAE8B789C/CRR_CADC__Pet_for_Rehrg_En_Banc_08082012.pdf">petitioned</a> for an <em>en banc </em>(full court) rehearing<em>. </em>On December 20, the court voted 5-2 to deny the petitions. However, the <a href="http://www.globalwarming.org/wp-content/uploads/2013/01/Coalition-for-Responsible-Regulation-Dec-20-2012.pdf">dissenting opinions of Judges Janice Rogers Brown and Brett Kavanaugh</a> are<em> </em>so cogently argued that the Supreme Court may decide to review the case. The Court might even reassess its ruling in <em>Mass. v. EPA</em>.</p>
<p>In a future post, I will discuss Judge Kavanaugh&#8217;s dissent. For now, let&#8217;s look at Judge Brown&#8217;s opinion.</p>
<p><em><strong>Judge Brown&#8217;s Opinion</strong></em></p>
<p>Judge Brown begins her dissent by noting that, although bound by the Supreme Court&#8217;s ruling, she is skeptical of its reasoning:</p>
<blockquote><p>Bound as I am by <em>Massachusetts</em>, I reluctantly concur with the Panel’s determination that EPA may regulate GHGs in tailpipe emissions. But I do not choose to go quietly. Because the most significant regulations of recent memory rest on the shakiest of foundations, Part I of this statement engages <em>Massachusetts</em>’s interpretive shortcomings in the hope that either Court or Congress will restore order to the CAA.</p></blockquote>
<p>Congress never intended the CAA to be an &#8220;environmental cure-all.&#8221; The Act&#8217;s actual statutory purposes are much more limited:</p>
<blockquote><p>It was targeted legislation designed to remedy a particular wrong: the harmful direct effects of poisoned air on human beings and their local environs. This is what Congress understood as &#8220;air pollution which may reasonably be anticipated to endanger public health&#8221; in the tailpipe emissions provision, <a href="http://www.law.cornell.edu/uscode/text/42/7521">42 U.S.C. § 7521(a)(1)</a>. The Supreme Court in <em>Massachusetts v. EPA</em>, 549 U.S. 497 (2007), however, concluded otherwise.</p></blockquote>
<p>Congress&#8217;s intent is visible in the very title of the statute:</p>
<blockquote><p>It was no happy accident that congressional draftsmen titled the legislation the “Clean Air Act.” Ambient air quality was the point, purpose, and focus of the CAA. Congress had set its sights on the “dirty, visible ‘smokestack’ emissions” [citation omitted].</p></blockquote>
<p>The CAA Amendments of 1990 &#8220;expanded the Act beyond its singular emphasis on urban air quality to address hazardous — i.e., toxic — air pollutants, acid rain, and stratospheric ozone,&#8221; Brown acknowledges. However, &#8220;the very particular way in which Congress handled these exceptions goes a long way toward proving the rule: Congress only expands the CAA through considered legislative acts.&#8221; Congressional intent is discernible in Congress&#8217;s consistent practice:</p>
<blockquote><p>Simply put, when Congress became aware of new dangers, it acted judiciously in crafting workable remedies that, when they obtained the necessary political support, were worked into their own discrete provisions under the Act. Neither Congress nor the EPA attempted to force these distinct problems into existing, ill-suited regulatory schemes.</p></blockquote>
<p>From which Judge Brown draws the common-sense conclusion:</p>
<blockquote><p>Where our Representatives have acted with such caution, any suggestion that Congress has — through a single word — conferred upon EPA the authority to steamroll through Congressional gridlock, upend the Senate’s rejection of the Kyoto Protocol, and regulate GHGs for the whole of American industry must necessarily fail. The legislature, recall, does not &#8220;hide elephants in mouseholes.&#8221; <em>Whitman v. Am. Trucking Assocs</em>., 531 U.S. 457, 468 (2001).</p></blockquote>
<p>Specific legislative history also argues against the cure-all interpretation of the CAA:</p>
<blockquote><p>In drafting the 1990 Amendments, Congress considered — and expressly rejected — proposals authorizing EPA to regulate GHGs under the CAA. . . . The Executive’s critique noted that “unilateral action aimed at addressing a global problem” through a standard limiting tailpipe emissions would not be an effective means of safeguarding the global environment and would “necessarily punish national interests.”</p></blockquote>
<p>Brown goes on to note that in all the years since the 1990 amendments, Congress has &#8220;never deviated from its decision not to regulate GHGs under the CAA&#8221; &#8212; and &#8220;not for lack of opportunity.&#8221; Indeed, &#8220;By one estimate, Congressmen have proposed more than 400 bills pertaining to GHGs between 1990 and 2009.&#8221;</p>
<p>None of this is to suggest, in the words of the <em>Massachusetts</em> Court, that &#8220;post-enactment congressional actions and deliberations&#8221; repeal powers previously delegated to the EPA by the CAA. The point, rather, is that more than a <a href="http://cei.org/op-eds-articles/environmental-protection-agency%E2%80%99s-end-run-around-democracy">selective and dubious reading of the CAA definition of &#8220;air pollutant&#8221;</a> is needed to establish that, in 1970, Congress did in fact delegate the truly awesome power to de-carbonize the U.S. economy to an administrative agency. Or, as Judge Brown more delicately puts it:</p>
<blockquote><p>Congress’s inability to break this nearly quarter-century long deadlock is incredibly suggestive: this is not an area of policymaking where the legislature has acted rashly or unthinkingly in delegating authority to agencies.</p></blockquote>
<p align="LEFT">Judge Brown also questions whether, per CAA §202, the EPA can actually show that &#8220;air pollution&#8221; from GHG emissions &#8221;may reasonably be anticipated to endanger public health or welfare.&#8221; It is one thing to establish a <em>nexus</em> between traditional air pollutants and the harm done to people who inhale them. It is quite another to demonstrate endangerment from GHGs, because &#8220;any harm to human health and welfare flowing from climate change comes at the end of a long speculative chain.&#8221;</p>
<p align="LEFT">The EPA had to make assumptions about future emissions, future emission concentrations, climate sensitivity, the impact of warming on weather patterns, the impact of those on agriculture and other economic activities, and, finally, the impact of those on human health and welfare. Brown worries that if the EPA can find endangerment where &#8221;there can be this much logical daylight between the pollutant and the anticipated harm, there is nothing EPA is not authorized to do.&#8221;</p>
<p align="LEFT">Next, Brown takes up the tailoring rule. She seems to suggest that the litany of absurd results arising under the PSD and Title V programs is itself reason to doubt that GHG regulation falls within &#8220;the literal meaning&#8221; of the CAA. In any event, she views the tailoring rule as a clear case of administrative overreach: &#8221;Faced with the choice of reconsidering the legitimacy of an endangerment finding that sets in motion such a cluster of chaos or rewriting the statute, the agency has blithely done the latter. This is an abuse of the absurdity and administrative necessity doctrines as neither can be invoked to preempt legislative prerogatives.&#8221;</p>
<p align="LEFT">Determining climate policy, she suggests, is above any administrative agency&#8217;s pay grade: &#8221;Congress should not be presumed to have deferred to agencies on questions of great significance more properly resolved by the legislature. If there was ever a regulation in recent memory more befitting [more guilty of?] such a presumption than the present, I confess I do not know of it.&#8221;</p>
<p align="LEFT">Next, Brown examines the relevance of <a href="http://www.law.cornell.edu/supct/html/98-1152.ZS.html"><em>FDA v.</em> <em>Brown &amp; Williamson</em></a> (1999), in which the Supreme Court struck down the FDA&#8217;s attempt to assert regulatory control beyond its statutory authority by classifying cigarettes as drug delivery devices. The Court distinguished the issues in <em>Massachusetts</em> from those in <em>Brown &amp; Williamson</em>, but Brown shows how with &#8220;only slight modifications&#8221; one could rework the text of <em>Brown &amp; Williamson</em> to apply to GHGs.</p>
<p align="LEFT">The Court argued that whereas FDA regulation of tobacco products under the Food, Drug, and Cosmetic Act (FDCA) logically entails an outright ban on the sale of cigarettes, an endangerment finding would &#8220;lead to no such extreme measures,&#8221; only a cost-constrained regulation of emissions from vehicles already regulated under §202 of the Act. &#8220;But,&#8221; observes Brown, &#8220;the Court spoke too soon.&#8221; The Court never considered whether or how motor vehicle GHG regulation would trigger regulation of stationary sources. It did not consider how regulation of GHGs as air pollutants would &#8220;radically expand the universe of covered entities far beyond Congress’s intentions.&#8221;</p>
<p align="LEFT">I would put the point as follows. Expanding the PSD and Title V programs to affect millions of non-industrial facilities &#8212; at an estimated compliance cost of up to $60,000 per facility &#8212; is the very definition of an extreme measure. Fixing the problem by amending the statute via administrative action is another extreme measure. Brown concludes: &#8220;The Supreme Court in <em>Massachusetts</em> simply did not have occasion to consider this absurd and &#8216;counterintuitive&#8217; outcome, but we do — and we must.&#8221;</p>
<p align="LEFT">Another extreme measure waiting in the wings (although not an issue in <em>Coalition for Responsible Regulation</em> and so fittingly not a topic of Judge Brown&#8217;s dissent) is GHG regulation via the national ambient air quality standards (NAAQS) program. <a href="http://www.globalwarming.org/2012/11/19/why-courts-should-repeal-epas-carbon-pollution-standard-and-why-you-should-care/">As discussed previously on this blog</a>, because the EPA finds endangerment in the &#8220;elevated concentrations&#8221; of GHGs in the atmosphere, the agency has implicitly committed itself to establish NAAQS for GHGs set below current atmospheric concentrations. Two eco-litigation groups, the <a href="http://www.biologicaldiversity.org/programs/climate_law_institute/global_warming_litigation/clean_air_act/pdfs/Petition_GHG_pollution_cap_12-2-2009.pdf">Center for Biological Diversity and 350.0rg</a>, petitioned the EPA more than three years ago to establish NAAQS for CO2 at 350 parts per million (~40 ppm below current concentrations) and for other GHGs at pre-industrial levels. Given the premises established by <em>Massachusetts</em> and the EPA&#8217;s endangerment rule, it is difficult to find fault with petitioners&#8217; reasoning.</p>
<p align="LEFT">CAA §108 requires the EPA to initiate a NAAQS rulemaking for “air pollution” from “numerous or diverse mobile or stationary sources” if such pollution “may reasonably be anticipated to endanger public health and welfare.” Carbon dioxide obviously comes from numerous <em>and</em> diverse mobile <em>and</em> stationary sources, and the EPA has already determined that the associated “air pollution” – the “elevated concentrations” of atmospheric GHGs – endangers public health and welfare.</p>
<p align="LEFT">To my knowledge, the Obama administration has addressed the NAAQS issue only once &#8212; in a brief submitted to the Supreme Court in <a href="http://www.supremecourt.gov/opinions/10pdf/10-174.pdf"><em>American Electric Power v. Connecticut</em></a> (2010). The <a href="http://www.openmarket.org/wp-content/uploads/2010/08/obama-brief-aep-v-connecticut-aug-2010.pdf">Obama Justice Department</a> described §108 as one of the provisions making the CAA a “comprehensive regulatory framework” for climate change policy.</p>
<p align="LEFT">This is worrisome because not even a worldwide depression that permanently lowers global economic output and emissions to, say, <a href="http://www.worldclimatereport.com/index.php/2006/04/10/dialing-in-your-own-climate/">1970 levels</a>, would stop CO2 concentrations from rising over the remainder of the century. Yet the CAA requires States to adopt implementation plans adequate to attain primary (health-based) NAAQS within five or at most 10 years. The level of economic sacrifice required to implement a CO2 NAAQS set at 350 parts per million would far exceed anything contemplated by the Waxman-Markey cap-and-trade bill or the Copenhagen climate treaty, which seek to stabilize CO2-equivalent GHG concentrations at 450 parts per million by 2050.</p>
<p align="LEFT">Congress did not pass the Waxman-Markey bill and the Senate did not ratify the Copenhagen treaty. They did not do so despite more than 20 years of global warming advocacy. So it would be the height of absurdity to suggest that when Congress enacted the CAA in 1970, years before global warming was even a gleam in Al Gore&#8217;s eye, Congress authorized the EPA to establish NAAQS for GHGs. Yet the &#8216;logic&#8217; of <em>Massachusetts</em> and the EPA&#8217;s endangerment rule would appear to demand the agency do just that.</p>
<p align="LEFT">How could the <em>Massachusetts</em> Court overlook the possibility that its decision would tee up the Mother of All Extreme Measures? Perhaps because petitioners gave the Court a bum steer.</p>
<p align="LEFT"><a href="http://www.americanbar.org/content/dam/aba/publishing/preview/publiced_preview_briefs_pdfs_06_07_05_1120petitioners.authcheckdam.pdf">Petitioners argued</a> that the EPA&#8217;s authority to regulate GHGs under Title II is &#8220;separate&#8221; from Title I and &#8220;entirely separate&#8221; from the EPA&#8217;s Title I authority to promulgate NAAQS. As is now evident to all, Title II regulation of GHG mobile sources triggered Title I PSD permitting requirements for major stationary sources. The EPA touts its Title II endangerment finding as the scientific basis for the <a href="http://www.gpo.gov/fdsys/pkg/FR-2012-04-13/pdf/2012-7820.pdf">proposed GHG new source performance standards</a> (NSPS) for fossil-fuel power plants under §111, also a Title I authority. Finally, as argued above, the EPA&#8217;s Title II endangerment finding creates a precedent for a §108 NAAQS rulemaking. Title I and Title II may be &#8220;separate&#8221; but they are not &#8220;entirely separate&#8221;; they are linked.</p>
<p align="LEFT">Near the conclusion of her opinion Brown writes: &#8221;Congress simply did not intend for EPA to convert the &#8216;Clean Air Act&#8217; to the &#8216;Warm Air Act&#8217; writ large. But that is exactly what the federal courts have done.&#8221; Yes, exactly. In both <em>Mass. v. EPA </em>and <em>Coalition for Responsible Regulation v. EPA</em>, federal judges facilitated and protected the EPA&#8217;s <a href="http://www.amazon.com/Climate-Coup-Warmings-Invasion-Government/dp/1935308440">climate coup</a>.</p>
<p align="LEFT">Is it reasonable then to seek redress from those very judges?</p>
<p align="LEFT">Perhaps so if the EPA&#8217;s many critics begin to hold courts responsible for agency&#8217;s greenhouse power grab and the associated damages to our economy and constitutional self-government.</p>
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