Gina McCarthy

Post image for Gina McCarthy’s Responses to Sen. Vitter’s Questions Part II: Fuel Economy*

Gina McCarthy — President Obama’s nominee to succeed Lisa Jackson as EPA Administrator — is often described as “straight shooter” and “honest broker.” Is that reputation deserved?

Last week, Sen. David Vitter (R-La.) released a 123 page document containing McCarthy’s responses to hundreds of questions on a wide range of issues. Part 1 of this series examined McCarthy’s responses to Vitter’s questions about the agency’s regulation of greenhouse gases from stationary sources. The key points were:

  1. McCarthy and the Air Office over which she presides gave Congress and the electric power sector false assurances that the EPA would not require utilities planning to build new coal-fired power plants to “fuel switch” and build natural gas combined cycle (NGCC) power plants instead.
  2. Such misinformation undercut the credibility of critics who warned that the EPA, if left to its own devices, would use greenhouse gas regulation to prohibit the construction of new coal electric generation.
  3. The EPA’s dissembling on fuel switching may have swayed votes against measures sponsored by Sen. Lisa Murkowski (R-Alaska) in 2010 and Sen. James Inhofe (R-Okla.) in 2011 to reclaim Congress’s authority to determine climate policy.

Agencies are not supposed to provide false or misleading information to influence how Members of Congress vote. Banning new coal generation — the inexorable effect of the EPA’s ‘Carbon Pollution’ Rule — is a policy Congress would reject if proposed as legislation.

Part 1 concluded that confirming McCarthy as Administrator would reward the EPA’s duplicitous pursuit of an agenda Congress has not authorized. Breaking news of the EPA’s grossly unequal treatment of groups seeking information under the Freedom of Information Act (FOIA) — based on whether the groups support or oppose a bigger, more intrusive EPA — leaves no doubt that this out-of-control agency deserves a kick in the butt, not a pat on the back.

Even the Society of Environmental Journalists — hardly a hotbed of libertarians, conservative Republicans, or fossil-fuel industry lobbyists — recently complained that the Obama administration “has been anything but transparent in its dealings with reporters seeking information, interviews and clarification” on environmental, health, and public lands issues, and that, “The EPA is one of the most closed, opaque agencies to the press.”

Today’s post examines McCarthy’s responses to Vitter’s questions about the administration’s motor vehicle mandates. As in Part 1, I begin with an overview of the issues and political back story. For more detailed analyses, see the House Government Oversight and Reform Committee report, A Dismissal of Safety, Choice, and Cost: The Obama Administration’s New Auto Regulations, and my article, EPA Regulation of Fuel Economy: Congressional Intent or Climate Coup? [click to continue…]

Post image for Gina McCarthy’s Responses to Sen. Vitter’s Questions Part I: Bait-and-Fuel-Switch*

Gina McCarthy — President Obama’s pick to succeed Lisa Jackson as EPA Administrator — is often described as a “straight shooter” and “honest broker.” As my colleague Anthony Ward and I explain in Forbes, McCarthy has a history of misleading Congress about the EPA’s greenhouse gas regulatory agenda.

Specifically, McCarthy and the Air Office over which she presides gave Congress and the electric power sector false assurances that the EPA’s greenhouse gas regulations would not require utilities planning to build new coal-fired power plants to “fuel switch” to natural gas. McCarthy also denied under oath that greenhouse gas motor vehicle standards are “related to” fuel economy standards, even though anyone with her expertise must know that the former implicitly and substantially regulate fuel economy.

McCarthy and the Air Office’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 — the prospect of a market-balkanizing, state-by-state, fuel-economy “patchwork” — just so the White House, in hush-hush negotiations, could demand auto industry support for the administration’s motor vehicle mandates as the price for averting the dreaded patchwork. This is a complicated tale, which I will discuss in Part 2 of this series.

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 transparency concerns about the EPA under the leadership of Lisa Jackson and Gina McCarthy, Senators should also have separation of powers concerns.

Earlier this week, Sen. David Vitter (R-La.), Ranking Member of the Senate Environment & Public Works Committee, released a 123 page document containing McCarthy’s responses to hundreds of questions on a wide range of issues. In today’s post, I comment on McCarthy’s responses to Sen. Vitter’s questions about fuel switching. In Part 2 of this series, I will comment on McCarthy’s responses regarding the administration’s motor vehicle program. [click to continue…]

Post image for Inside the Sausage Factory: The Obama Administration’s Auto Regulations

Earlier this month, the House Oversight and Government Reform Committee issued a staff report on the Obama Administration’s fuel economy/greenhouse gas (GHG) regulatory program. The report, A Dismissal of Safety, Choice, and Cost, is the product of a “multi-year Committee investigation” that includes three hearings, a transcribed interview of EPA Assistant Administrator Gina McCarthy, and a review of more than 15,000 documents obtained by the Committee from the EPA, the National Highway Traffic Safety Administration (NHTSA), the California Air Resources Board (CARB), and 15 automobile manufacturers.

Some key findings:

  • The Administration performed an end-run around the law and ran a White House-based political negotiation, led by “czars” who marginalized NHTSA, the federal agency charged in statute with setting fuel economy standards.
  • Contrary to the statutory scheme Congress created, the EPA became the lead agency in fuel economy regulation and NHTSA was sidelined. Contrary to Congress’s preemption of State laws or regulations “related to” fuel economy, CARB became a “major player” and an “aggressive participant in the process,” allowing unelected state regulators in Sacramento to set national policy outside the federal rulemaking process.
  • The Administration violated the spirit – and possibly the letter – of the Administrative Procedure Act, Presidential Records Act, and Federal Advisory Committee Act by negotiating agreements on both the Model Year (MY) 2012-2016 and MY 2017-2025 standards behind closed doors with only a select group of stakeholders.
  • The new fuel-economy/GHG standards will add thousands of dollars to the cost of new vehicles. Consumers are likely to incur net financial losses unless annual gasoline prices reach $5-$6 per gallon.
  • Compliance with the new standards will require mass reductions that will, in turn, compromise vehicle safety. EPA and CARB officials mocked and belittled safety concerns raised by NHTSA.

In a law journal article and regulatory comment letter, I also make the case that the administration’s fuel-economy agenda trashes the separation of powers and administrative procedures. But the Committee’s report provides the first, detailed behind-the-scenes chronology of Team Obama’s fuel economy machinations, confirming what other critics suspected but could not document.

Some secrets of the sausage factory, though, may never come to light: “Despite multiple requests, the Executive Office of the President refused to provide any information on its involvement in developing the fuel economy and GHG emissions standards.”

[click to continue…]

Post image for Did Obama EPA/DOT Officials Lie to Congress?

Earlier this week, House Oversight and Government Reform Committee Chairman Darrell Issa (R-Calif.) sent letters to three Obama administration officials regarding the veracity of their testimonies at an October 12 subcommittee hearing on the administration’s fuel economy policies.*

Issa’s letters — to National Highway Traffic Safety Administration (NHTSA) Administrator David Strickland, EPA Assistant Administrator for Air and Radiation Gina McCarthy, and EPA Director of Transportation and Air Quality Margo Oge — are identical in content.

The gist of the letters is that each administration witness denied under oath that EPA and California’s greenhouse gas emission standards are “related to” fuel economy standards, whereas in fact, according to Issa, “regulating greenhouse gases and regulating fuel economy is a distinction without a difference.”

This matters for three inter-related reasons: (1) EPA is currently regulating fuel economy by setting motor vehicle greenhouse gas emission standards even though the Clean Air Act provides no authority for fuel economy regulation; (2) EPA in June 2009 granted California a waiver to establish motor vehicle greenhouse gas emission standards despite the Energy Policy Conservation Act’s (EPCA’s) express prohibition (U.S.C. 49 § 32919) of state laws or regulations “related to” fuel economy; and (3) the California waiver, by threatening to create a market-balkanizing “regulatory patchwork,” enabled the Obama administration to extort the auto industry’s support for EPA’s new career as greenhouse gas/fuel economy regulator in return for California and other states’ agreement to deem compliance with EPA’s greenhouse gas/fuel economy standards as compliance with their own.

As I will demonstrate below, greenhouse gas emission standards are highly “related to” fuel economy standards, and the administration witnesses cannot possibly be ignorant of the relationship. Do their denials of plain fact rise to the level of perjury? [click to continue…]