UARG Reaction

by William Yeatman on June 23, 2014

in Blog

The big UARG, et al. v. EPA, et al. decision dropped this morning. I’ve posted the decision below. What follows are my snap reactions. I’ll update when I’ve better digested the rule.

Only two justices (Alito & Thomas) rendered a correct interpretation of the Clean Air Act and found that greenhouse gases are “fundamentally incompatible” with the Prevention of Significant Deterioration program, including the requirement for Best Available Control Technology, and also the Act’s Title V permitting program. As a result of today’s unfortunate ruling, which was basically an adoption of the American Chemistry Council’s opening position/Judge Kavanaugh’s dissenting opinion*, EPA will continue to try to hammer a square peg (regulating GHGs) into a round hole (the PSD/Title V programs). It should be noted that there are no actual environmental improvements attendant to EPA’s climate rules, because they won’t in any way impact climate change.

There is a possible silver lining. This term, in the course of permitting EPA regulatory regimes for visibility improvement and interstate pollution (either by ruling or refusal of cert) the Supreme Court facilitated an expansion of EPA discretion to interpret the Clean Air Act however the agency saw fit. With today’s decision in UARG, we at least have established a line in the sand regarding deference to agency decision making: The agency will not be permitted to blatantly re-write laws.** This is, alas, a pretty low bar.

*Ultimately, all of the industry & state petitioners adopted the ACC’s argument–which, again, effectively prevailed–as a fall back, secondary argument to their primary case, that GHGs are incompatible with PSD & Title V. The ACC argument, in turn, is very close in nature to D.C. Circuit Judge Brett Kavanaugh’s dissent to that court’s refusal of an en ban hearing of the 3 judge panel’s UARG decision. In a nutshell, ACC/Kavanaugh argued that GHGs can’t be a trigger by which a stationary source is made subject to PSD, but they can fall within the ambit of BACT, which is the major PSD requirement. Such a reading is somewhat counter-intuitive: BACT is a component of PSD, but applies more broadly than PSD. The practical impact is that non-GHG emissions can trigger PSD for a source; and a part of PSD is BACT for GHGs. Confusing, right?

**The agency had attempted to “tailor” the Clean Air Act in order to make workable the agency’s long-standing interpretation that the emission of any regulated pollutant by a “major” stationary source could trigger PSD. The Court’s 5-4 ruling rejected this interpretation, because it necessitated a rewriting the Act and also resulted in a large expansion of federal power. As I explain in the above endnote, even if GHGs aren’t a PSD trigger, stationary sources subject to PSD still will have to adopt the major PSD requirement (BACT) for GHGs.

UARG Decision

 

Last week’s primary document dump used a case study of an ongoing lawsuit (Sierra Club, et al. v McCarthy) in order to demonstrate the inner workings of a legal strategy employed by environmental special interests known as “sue and settle.”

For this week’s primary document dump, we’re again focusing on sue and settle. In particular, we’re addressing the suspicious lines of communications maintained by ex-EPA Region 6 administrator Al Armendariz with plaintiffs in pending sue and settle litigation. Before he became EPA Region 6 administrator, Armendariz was a “technical advisor” to WildEarth Guardians, and he also maintained a close relationship with Sierra Club (an organization for which he is currently employed, after resigning from EPA amid controversy for having compared his enforcement style to a crucifixion). During his time at the EPA, these environmental special interests filed a number of deadline citizen suits that led to sue and settle negotiations. We have evidence that EPA lawyers had to intervene in order to impose a recusal on their colleague Armendariz, which I’ve reconstructed in the four emails immediately below:

11 November 2010, 6:02 PM: An email among EPA employees acknowledges a deadline citizen suit filed by two environmental special interests: Sierra Club & WildEarth Guardians. Notably, the email indicates that EPA never even considered defending its prerogatives to set its own priorities. Instead, a negotiated consent decree is assumed.

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11 November 2010, 6:11 PM: Only 9 minutes after learning about the sue and settle negotiations, EPA’s Lawrence Starfield emailed EPA Region 6 administrator, in order to preemptively recuse Armendariz from the case, due to prior relationship with the Sierra Club. It is unclear what was Armendariz’s relationship with Sierra Club had been. Currently, Armendariz works for Sierra Club’s “Beyond Coal” campaign.

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11 November 2010, 6:25 PM: A quarter hour later, Armendariz responded to Starfield. In his response, the EPA Region 6 administrator rejects Starfield’s conclusion regarding the need for a recusal. Armendariz then tells Starfielf that, “if needed” he could “call Jeremy [Nichols] at [WildEarth Guardians] and grab [EPA Region 6] an extended deadline.” Jeremy Nichols is described on WildEarth Guradians website as, “Director of the Climate and Energy Program, taking action to fight fossil fuels, promote clean energy, slash greenhouse gases.” On Armendariz’s cv, Nichols is listed as a personal reference. [click to continue…]

Cooler Heads Digest 20 June 2014

Back on June 6th, OSTP (the White House Office of Science and Technology Policy) officially declined to reexamine its highly-publicized January explanation for the extremely cold winter.  According to that video, The Polar Vortex Explained In 2 Minutes, the likely culprit was global warming; this was supposedly demonstrated, in Director John Holdren’s words, by “a growing body of evidence”.

In a Data Quality correction petition that we filed with OSTP in April, we pointed out that the body of evidence supporting Holdren was in fact shrinking, not growing.  (In fact, it shrank even more earlier this week, when yet another contrary study came out.)  But OSTP ducked the issue, claiming that its Director had only been expressing his “personal opinion”, and that therefore the Data Quality Act didn’t apply.

Note that the video is posted on the White House youtube channel and has been touted by other OSTP staff.  OSTP never corrected any of the many reporters who interpreted it as being the White House line.  If Holdren’s mere “personal opinion” was dressed up in this much official garb, then how much more formality would have accompanied an “official” statement?  Would herald angels have burst into song?

So today we filed an appeal with OSTP of its decision.  It’s reprinted below, but here’s the gist of it:

“OSTP’s rationale is sheer nonsense, concocted in order to escape its legal responsibilities for highly questionable scientific assertions that produced a huge number of self-aggrandizing headlines.  Moreover, even if its rationale is correct, OSTP still has a responsibility to prominently label the statements at issue as personal opinions, so that neither the media nor viewers of its web site continue to mistake them as official agency positions.”

That’s right, OSTP.  If you’re serious about this being your Director’s personal opinion, then put a fat red rubber-stamped disclaimer saying that on the video.  Better yet, take the video off your website before some government auditor asks why agency resources are being used to promote personal opinions.

You’ve got wonder whether global warming is affecting these people’s judgment.

CEI's OSTP Information Correction Appeal 6 19 14

You’ve likely read or heard about how a supposed technological glitch resulted in the loss of ex-IRS official Lois Lerner’s emails from the very period of time when she allegedly used state power to prosecute the President’s political enemies.

Lerner’s “honest” mistake evokes an even more blatant circumvention of transparency laws and ethical norms: Landmark Legal Foundation v. EPA, 272 F. Supp. 2d. 70 (2003).

The case originated in September 2000, in the immediate wake of a media report that the EPA, which was then headed by Carol Browner (formerly President Obama’s climate ‘czar,’ once a card-carrying member of the Socialist International, and now at the Center for American Progress), intended to promulgate a raft of regulations during then-President Bill Clinton’s lame-duck session.* In response to this article, the Landmark Legal Foundation filed a FOIA with EPA, requesting identification of all rules or regulations that EPA planned to promulgate during the lame duck session. Litigation ensued.

In the course of the suit, the federal district court for the District of Columbia issued an injunctive order prohibiting EPA from destroying any relevant records. That an injunction was necessary is telling. Nonetheless, in blatant contravention of the court’s order, “the hard drives of several EPA officials were reformatted, email backup tapes were erased an reused, and individuals deleted emails received after that date.”

According to the Court:

Here, EPA’s conduct of reformatting computers and erasing email backup tapes continued for over three months after the Court issued its order. This scheme shows both frequency and severity sufficient to justify the award of Landmark’s legal fees. This conclusion is bolstered by the unique nature of this case. EPA’s conduct was directly related to the subject matter of this FOIA litigation-Landmark sought information, and EPA destroyed it. Attorney’s fees covering the entire span of the contempt dispute are appropriate because EPA’s contempt was not merely incidental litigation conduct, but goes to the heart of the case. The Court concludes that the appropriate sanction for EPA’s contumacious violation of this Court’s January 19 order is to impose sanctions in the form of Landmark’s attorney’s fees and costs incurred as a result of EPA’s contumacious conduct.

Read all about it for yourself. I’ve posted the court’s July 24, 2003 decision at the bottom of this post. [click to continue…]

On Sunday morning’s Platts Energy Week with Bill Loveless, Janet McCabe, acting head of EPA Office of Air and Radiation, told the host that the agency is “very sensitive” to the reliability impact of its rules. All the evidence suggests otherwise.

For starters, consider that EPA Administrator Gina McCarthy recently said that she’s “tired” of hearing about the reliability threats posed by the agency. Of course, it’s improbable that one can be “very sensitive” to an issue one is “tired” of discussing.

Consider as well Commissioner Philip Moeller’s opening remarks during last week’s Federal Energy Regulatory Commission reliability conference, in which he stepped on EPA’s reliability analysis in the course of praising the North American Electric Reliability Council:

[At the 48:15 mark] FERC Commissioner Philip Moeller: The final observation is that I hope you’ll [he is referring to NERC] always keep your independence…we want you to tell it like it is. And I think back to your projections on what the bulk power system—on what would happen with MATS rule (the “the Mercury and Air Toxics Standards,” also known as the “Utility MACT”)—and you took public criticism from the Chairman of this commissions and the administrator of the EPA for essentially predicting exactly what would happen. Losing 67 GW. You were right. You did the right thing. [You] took heat for it, and going forward we’re going to need that sort of honesty and objective analysis.

To summarize Moeller’s remarks: EPA was wrong to criticize NERC’s warning over the ridiculous Utility MACT. At that time, EPA defended itself/offended NERC by pointing to a reliability assessment that the agency had conducted in the course of crafting the pointless, politicized Utility MACT. According to EPA’s analysis of its own rule, there was nothing to worry about, as the regulation would have a negligible impact.

As noted by Commissioner Moeller, events have since discredited the agency’s reliability assessment.

With EPA’s history of undue optimism regarding the reliability impact of its rules in mind, it is disconcerting that the agency is projecting that its just-released climate regulations for existing power plants would adversely affect reliability in three regions of the country. Reports InsideEPA’s John Siciliano ($):

EPA in the resource and reliability analysis concedes that in three regions of the United States the changes caused to the grid by the ESPS could cause at least a 5 percent decrease in their electricity reserves. “The EPA believes changes below 5 percent are unlikely to raise concerns over reliability,” the agency says.

The three regions where EPA’s Integrated Planning Model (IPM) review of the ESPS shows potential reserve impacts above 5 percent that could cause reliability problems are: New England under the control of the New England Independent System Operator; the Southeastern Reliability Corporation states of Georgia, Alabama, part of Mississippi, and the panhandle of Florida overseen by the North American Electric Reliability Corporation (NERC); and the state of Florida comprising its own NERC reliability corporation, known as FRCC.

See for yourself. Below, I’ve reposted EPA’s reliability analysis, according to which three regions–encompassing New England, the deep South, and the Gulf panhandle–will face potential problems keeping the lights on as a consequence of the regulation. In light of EPA’s history of low-balling the impact of its rules, one wonders how much worse is the threat in reality. [click to continue…]

An article I wrote was published last week in the Appalachian Natural Resources Law Journal. It’s titled “Deadline Citizen Suits: An Idea Whose Time Has Expired.” In it, I argue that Congress included two legislative innovations in the Clean Air Act of 1970–(1) deadlines and (2) citizen suits to enforce these deadlines–in order to achieve two ends: (1) limiting regulatory capture and (2) expanding participation in the regulatory process. However, in the ensuing decades, these statutory means, far from achieving their intended purpose, have instead engendered the very problems they were originally intended to mitigate. EPA’s chronic non-performance of its non-discretionary, date-certain duties has facilitated deadline citizen suits establishing virtually all of the agency’s priorities. By this dynamic, EPA’s regulatory initiative has been captured by environmental special interests. These green groups, moreover, exhibit many of the characteristics, including a revolving door and also heavy political spending, that were attendant to the “capture” of New Deal regulatory agencies by industry. Below, I’ve posted a copy.

 

Deadline Citizen Suits: An Idea Whose Time Has Expired

 

Platts Energy Week with Bill Loveless: EPA Office of Air & Radiation acting head Janet McCabe gave an Orwellian interview on Sunday morning’s Platts Energy Week with Bill Loveless. Below, I’ve parsed a few of her statements:

Janet McCabe opens the interview by saying, “Flexibility is really the key to this proposal, and it comes from the Clean Air Act itself.”

[Truth of the Matter: By “flexibility,” she means piling unfunded mandate upon unfunded mandate. The agency’s climate rule is based on 4 “building blocks.” The first, efficiency improvements at individual power plants, is in line with EPA’s historical interpretation of the Clean Air Act. The second, third, and fourth “building blocks”—environmental electric dispatch, green energy mandates, and demand-side management programs—comprise the preponderance of the standard, and each one is a discrete policy of the sort that has been the exclusive preserve of State governments since the New Deal. Of course, States would have the “flexibility” to use less energy to meet the goals based on these “building blocks,” either outright or indirectly via a cap-and-trade energy rationing scheme.]

Bill Loveless: “What happens if States don’t meet these goals in 2030? Would they be penalized in the end, if they were just short of those goals?”
Janet McCabe: “No. EPA approach is always to work with States to get them to be successful.”

[Truth of the Matter: What McCabe claims was indeed once true, before the Obama administration, which has demonstrated an unprecedented willingness to run roughshod over States.]

Bill Loveless: “Is there a risk that this plan would result in much higher electricity prices and much less reliability in electricity markets.”
Janet McCabe: “Of course, we’re very sensitive to that…We think that the costs are very reasonable, especially when you look at the economic and public health benefits.”

[Truth of the Matter: EPA is, in fact, insensitive to reliability. And the costs of the rule are very unreasonable, because there are no economic and public health benefits.]

Watch the whole interview below: [click to continue…]

Post image for American Lung Association Manipulates ‘Maternal Instinct’ to Sell EPA Power Grab

The American Lung Association (ALA) has launched a TV and digital ad campaign touting EPA’s Clean Power Plan, also called the carbon “pollution” rule for existing power plants.

ALA’s Facebook page offers a brief explanation:

Power plant pollution is a serious threat to our health, especially to kids. Check out our new television commercial to see what we’re doing to standup for little lungs vs. big polluters.

The commercial, titled “Mother’s Instinct,” features a baby boy in a crib with a monitor that lets Mom (and us) hear him breathing.

Here’s the text:

The Clean Air Act stops polluters from poisoning his [the baby’s] air with arsenic, lead, and mercury. Now the loophole that let’s them pump unlimited carbon pollution into his air is closing too . . . if polluters and their friends in Washington don’t interfere. Don’t let polluters weaken our clean air protection.

As the narrator says the words “if polluters,” the baby disappears from the screen and instead we see what looks like smoke billowing out of the stack of a coal power plant.

Fact check time. First, mercury emissions from power plants do not poison anyone’s air. When mercury emissions deposit in soils and water bodies, bacteria can transform inorganic mercury (Hg) into methylmercury (CH3Hg), an organic compound that can bioaccumlate in aquatic food webs. In theory, American women who consume hundreds of pounds of self-caught (non-commercial) fish from the most contaminated water bodies can damage the cognitive and neurological development of their unborn children. However, in the 24 years since Congress tasked EPA to study the health risks of mercury, the agency has not identified a single child whose learning or other disabilities can be traced to prenatal mercury exposure due to maternal fish consumption. But even if mercury in fish were a significant health hazard, it would still be false to claim that power-plant mercury emissions poison the air kids breathe.

The case is somewhat similar for arsenic. Inhalation is a “route of exposure” but mainly as an occupational hazard at certain types of industrial facilities that emit arsine gas. For the general population, which includes children, the main route of exposure is ingestion of contaminated food or water.

More importantly, carbon dioxide (CO2), the substance targeted by EPA’s Clean Power Plan, is non-toxic to humans and animals at multiple times today’s atmospheric concentration (~400 parts per million) or any level reasonably anticipated for centuries to come. [click to continue…]

There’s a very interesting legal argument that the Clean Air Act forbids EPA from regulating greenhouse gases from existing power plants, which is the purpose of a major climate change rule proposed by the agency on June 2. In a nutshell, the argument goes like this:

  • EPA’s climate regulatory regime for existing sources is authorized by §111(d)
  • In 1990 Amendments to the Clean Air Act, Congress barred EPA from issuing §111(d) regulations for any source category that is also subject to §112 standards for hazardous air pollution. This exclusion is found in 111(d)(1)(A)(i)*
  • In February 2012, EPA promulgated §112 standards for power plants (the ridiculous Utility MACT).
  • Therefore, EPA is prohibited from subjecting power plants to §111(d) regulations.

Environmental special interests, on the other hand, currently claim that this line of reasoning has no merit. To this end, they point to the existence of a drafting error rendered during the Conference Committee to reconcile the House and Senate versions of the 1990 Clean Air Act Amendments. According to leading environmental lawyers, there are, in fact, two versions of §111(d)(1)(A)(i) as it pertains to the §112 exclusion, and, as a result, the text is ambiguous. Statutory ambiguity, in turn, is a classic trigger for judicial deference to agency interpretation.

Consider, for example, David Doniger, Policy Director and Senior Attorney, Natural Resources Defense Council Climate and Clean Air Program. Here’s what he said about the matter at a May 23 Federalist Society event (video above):

[At the 59:20 mark] When you look at this statute, it turns out that Congress really kind of screwed up in 1990. They adopted two provisions in two different sections of the 1990 Clean Air Act Amendments that both modified the same sentence of §111(d), and the codifiers didn’t know what to do. So they tried, and picked one version of it, and put it in the US code. But it turns out that what is really the law of the land, is the Statute at Large. So you have to reconcile these two inconsistent amendments adopted at the same time to a single sentence of the CAA. If there ever was a place when the Chevron doctrine applies, it’s gotta be that, where the statute is literally a mutation in the process in dividing and combining between the House and Senate. And the agency is going to end up with the leeway to resolve that. The EPA did produce a resolution to that in the [pause] I believe it was the mercury regulations or maybe it was a recent one. And I think the Supreme Court will spend five minutes on that one.

I’ve added the formatting to highlight Doniger’s correct claim that the EPA has indeed “produce[d] a resolution” to this textual discrepancy. The agency first did so in 2005, as part of its Clean Air Mercury Rule. Briefly, EPA’s 2005 mercury rule would have exempted power plants from §112 hazardous air pollution controls, and instead subjected them to §111(d) controls for mercury. NRDC, for whom Doniger works, opposed the 2005 Clean Air Mercury Rule. And a key component of NRDC’s legal reasoning–at that time, at least–was that the Clean Air Act bars EPA from imposing §111(d) requirements on a source that is already subject to §112 standards. See for yourself: At the bottom of this post, I’ve reposted NRDC’s reply brief in opposition to the 2005 mercury standards. (See Part II, “EPA May Not Adopt §111 Standards for EGU Emissions of Listed HAPS,” p 13, where the environmental plaintiffs state that the Clean Air Act “…prohibits EPA from setting §111 standard for pollutants like mercury “emitted from a source category which is regulated under section 112”…”)

[click to continue…]