EPA's Regulation of Greenhouse Gas Emissions
- April 17, 2009 EPA proposed endangerment finding. Comment period closed June 23, 2009. Final rulemaking expected in March 2010. The endangerment finding triggers a host of regulatory actions under the Clean Air Act. Once EPA determines that Greenhouse Gas (GHG) is a threat to public health, then a series of regulatory proposals to curb GHG emissions are required under the Clean Air Act. http://epa.gov/climatechange/endangerment.html .
Small business concern: While the proposed endangerment finding does not mandate specific regulations, it will trigger a series of regulatory actions by EPA. EPA did not issue an analysis of how the regulatory actions, in total, will impact small firms.
- May 26, 2009 EPA proposed Renewable Fuel Standard (RFS). Final rule will be issued November 30, 2009. Proposal anticipates annual production of 16 billion gallons of cellulosic biofuels by 2022, 15 billion gallons of conventional biofuels, 4 billion gallons of advanced biofuels, and 1 billion gallons of biodiesel. http://www.epa.gov/otaq/renewablefuels/index.htm .
Small business concern: In 2008, small business interests recommended flexible approaches to EPA. The letter by the small business advocacy review panel is available at: http://yosemite.epa.gov/opei/Sbrefa.nsf/(PDFView)/5250/$file/pnl32a.pdf?OpenElement
And, the full report is available at: http://yosemite.epa.gov/opei/sbrefa.nsf/(PDFView)/5250/$file/pnl32b.pdf?OpenElement .
- September 15, 2009 EPA and the Dept. of Transportation jointly issued GHG emission regulations for cars and light trucks (fuel efficiency standards). The proposed rulemaking requires 35.5 miles per gallon by 2016 (this speeds up the requirement of meeting 35.5 mpg by 4-years). Final rulemaking expected in March 2010. http://www.epa.gov/oms/climate/regulations/420f09047.htm .
Small business concern: Small businesses are concerned with how this rule will raise the cost of vehicles and whether the Department of Transportation (traditionally more receptive to vehicle-cost considerations) has ceded its authority to the EPA.
- September 22, 2009 EPA finalized the Greenhouse Gas (GHG) reporting rule. Effective January 1, 2010, sources that emit 25,000 metric tons of CO2 per year will be required to report to EPA annually. Note: EPA estimates that this threshold is equivalent to the annual energy usage of 2,300 homes. http://www.epa.gov/climatechange/emissions/ghgrulemaking.html .
Small business concern: Many small businesses are exempt from the reporting requirement. However, limited analysis was done to project the costs of determining whether a small firm is above or below the C02 emissions threshold.
- September 30, 2009 EPA issued its "tailoring rule," a proposal that will require facilities emitting over 25,000 tons of CO2 per year to comply with Clean Air Act permitting requirements. Final rulemaking expected in March 2010. Comments on EPA's proposal are due by December 28, 2009. http://www.epa.gov/NSR/fs20090930action.html .
Small business concern: Small businesses are concerned that EPA's exemption of sources that emit under 25,000 tons will not survive legal challenge because the Clean Air Act sets the threshold at 250 tons. The lower threshold would subject millions of home-based businesses and other small businesses to Clean Air Act permitting requirements.
The articles published in this newsletter are intended only to provide general information on the subjects covered. The contents should not be construed as legal advice or a legal opinion. Readers should consult with legal counsel to obtain specific legal advice based on particular situations.