This Week in Review – November 2-6, 2015 (1) President Obama Rejects Keystone Pipeline Permit (November 6, 2015) – President Obama has accepted the recommendation of the U.S. State Department to deny a permit to construct the Keystone XL pipeline. TransCanda applied for the permit in 2012 to build the 1,204-mile pipeline to transport crude oil from Alberta, Canada to U.S. oil refineries along the Gulf of Mexico. The announcement, made jointly by President Obama and State Department Secretary John Kerry, cited many factors behind the decision but emphasized that approving the pipeline would harm international efforts to address climate change. “America is now a global leader when it comes to taking serious action to fight climate change. And frankly, approving this project would have undercut that global leadership. And that’s the biggest risk we face -- not acting,” said President Obama. At the same time, Obama and Kerry both responded to criticisms made by supporters and opponents of the pipeline during the lengthy permit review process. According to Kerry, “I am also convinced that public arguments for and against the pipeline have, to some extent, been overstated. Our analysis makes it clear that the Keystone XL pipeline would not be the economic driver it is heralded to be. On the other hand, while it would facilitate the transportation to the United States of one of the dirtiest sources of fuel on the planet, the proposed project by itself is unlikely to significantly impact the level of crude extraction or the continued demand for heavy crude oil at refineries in the United States.” Additional background information on the Keystone XL pipeline, the legal basis for reviewing the permit application, public and federal comments on the application and the complete basis for denial are explained in a Record of Decision and National Interest Determination document prepared and released by the State Department. Earlier this week, TransCanada wrote the Obama Administration to request that it suspend review of the Keystone XL pipeline until the company could resolve a route dispute in Nebraska. For further information: http://www.4cleanair.org/sites/default/files/Documents/Keystone_Decision.pdf (Record of Decision and National Interest Determination); https://www.whitehouse.gov/the-press-office/2015/11/06/statement-presidentkeystone-xl-pipeline (Press Statement from President Obama); http://www.state.gov/secretary/remarks/2015/11/249249.htm (Press Statement from Secretary Kerry); http://transcanada.mwnewsroom.com/Files/b7/b7f621720b25-47a8-9bf3-479c82228f16.pdf (TransCanada Review Request) 2 (2) Coalition of States and Municipalities Sides with EPA to Defend Clean Power Plan in D.C. Circuit Litigation; Mississippi Joins Petitioners; More Stay Motions Filed (November 4, 2015) – Eighteen states led by New York, along with the District of Columbia and six municipalities, filed an unopposed motion in the U.S. Court of Appeals for the D.C. Circuit to intervene in support of EPA to help defend the Clean Power Plan (CPP). The movant-intervenors, who assert that they have a compelling interest in defending the CPP to help prevent and mitigate climate change harms to themselves, include California, Connecticut, Delaware, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia, Washington, the District of Columbia, the cities of Boulder, Chicago, New York, Philadelphia and South Miami, and Broward County, Florida. With 27 states having already signed on to petitions challenging the rule – most recently, Mississippi, which filed its petition for review on November 5 – there remain only five states that have not taken sides in the D.C. Circuit litigation (Alaska, Idaho, Nevada, Pennsylvania and Tennessee). Also this week, Mississippi, Peabody Energy Corporation and Basin Harbor Electric Cooperative each filed motions to stay the rule, bringing the total number of stay motions to nine (several earlier motions were filed on behalf of multiple petitioners; all of the 27 petitioning states have signed onto stay motions). Mississippi argues in its motion that the rule infringes on the state’s sovereign interests and will cause it immediate and unrecoverable economic harm due to the time and resources necessary to devote to the development of a state plan, as well as actions that utilities must take in the near-term to prepare for CPP compliance. For further information: http://www.4cleanair.org/sites/default/files/Documents/2015_11_04_New_York_et _al_Motion_to_Intervene.pdf (states’ and municipalities’ motion to intervene); http://www.4cleanair.org/sites/default/files/Documents/2015-1105_Mississippi_Stay_Motion_Corr_11_6.pdf (Mississippi’s stay motion); http://www.4cleanair.org/sites/default/files/Documents/2015_11_05_Peabody_Sta y_Motion.pdf (Peabody Energy Corp.’s stay motion); http://www.4cleanair.org/sites/default/files/Documents/2015-1105_Basin_Electric_Stay_Motion.pdf (Basin Electric Power Cooperative’s stay motion) (3) House Republicans Accuse EPA of Meddling with Codification Process to Protect Clean Power Plan (November 2, 2015) – Top Republicans on the House Energy and Commerce Committee have written a letter to EPA Administrator Gina McCarthy accusing the agency of meddling with a process to formally codify the 1990 Clean Air Act (CAA) amendments in order to protect the agency’s Clean Power Plan (CPP). The CPP, published in the Federal Register on October 23, sets CO2 emission limits for existing power plants. The controversy stems from a disagreement over the impact of conflicting House and Senate amendments to CAA section 111(d) in the 1990 CAA amendments. Only the House amendment appears in the U.S. Code, though both the House and Senate amendments appear in the U.S. Statutes at Large. The House letter argues that the 1990 House amendment prohibits EPA from using section 111(d) to regulate power 3 plant CO2 emissions because these sources are already regulated under CAA section 112. The Office of Law Revision Counsel (OLRC), a nonpartisan office based in the U.S. House, is tasked with the administrative process of incorporating the Statutes at Large into the U.S. Code and then developing legislation to enact those changes. Though OLRC updated the U.S. Code to incorporate the 1990 CAA amendments in 1992, enacting legislation has never been approved by Congress and signed by the President. The House letter accuses EPA of meddling with the OLRC’s efforts to develop such legislation over the past seven years stating, “it appears that the agency may have been inhibiting a statutorily prescribed process because it would undermine the agency’s legal arguments supporting its 111(d) rulemaking.” The letter goes on to demand a description of all of EPA’s interactions with OLRC regarding the CAA’s codification process by November 16, 2015. The House letter is signed by Energy and Commerce Committee Chairman Fred Upton (R-MI), Subcommittee on Oversight and Investigation Chairman Tim Murphy (R-PA) and Subcommittee on Energy and Power Chairman Ed Whitfield (R-KY). Representative Tom Marino (R-PA) separately introduced legislation, H.R. 2834, in June to perform the codification by consolidating U.S. environmental statutes into a new Title 55. The bill would eliminate the 1990 Senate amendment language to section 111(d). The House Judiciary Committee approved the bill with a party-line vote of 20-13 on October 27. For further information: http://www.4cleanair.org/sites/default/files/Documents/CAACodifcationLetter.pdf (House Energy and Commerce Committee Letter to EPA); https://www.congress.gov/bill/114th-congress/house-bill/2834 (H.R. 2834) http://judiciary.house.gov/index.cfm/markups-meetings?ID=3A3EACF7-0EC9401E-8566-44A7DFFFB9C0 (October 27, 2015 House Judiciary Markup) (4) House Subcommittee Advances Congressional Review Act Measures to Halt EPA Carbon Rules (November 3, 2015) – The House Energy and Commerce Subcommittee on Energy and Power advanced two joint congressional resolutions that would use the Congressional Review Act (CRA) to eliminate EPA’s Clean Power Plan rule. The CRA allows Congress to disapprove and rescind administrative rules with a simple majority vote in the House and Senate, though a two-thirds majority is still required to overide any presidential veto. Representative Ed Whitfield (R-KY) introduced the CRA resolutions, H.J. Res 71 and H.J. Res 72, last week to rescind EPA’s carbon emission limits for new and existing power plants. The subcommittee approved both resolutions with a 15-12 party-line vote. A full committee markup has not yet been scheduled. For further information: https://energycommerce.house.gov/markup/energy-and-powersubcommittee-markup-hj-res-71-and-hj-res-72 (5) State and Local Entities Enter Litigation on Both Sides of EPA’s 111(b) Rule (November 3-4, 2015) – A group of 21 states filed a challenge in the U.S. Court of Appeals for the District of Columbia Circuit to EPA’s carbon pollution rule for new power plants. The rule, issued under section 111(b) of the Clean Air Act, sets CO2 emission limits for new, modified, and reconstructed power plants based on the application of carbon capture and sequestration technology. A separate 4 group of 16 states moved to intervene in support of the rule. The states in opposition, led by West Virginia, filed a short Petition for Review on November 3 claiming that they “will show that the final rule is in excess of the agency’s statutory authority and otherwise is arbitrary, capricious, an abuse of discretion and not in accordance with law.” The states listed on the petition are West Virginia, Alabama, Arkansas, Florida, Georgia, Indiana, Kansas, Kentucky, Louisiana, Michigan, Missouri, Montana, Nebraska, Ohio, Oklahoma, South Carolina, South Dakota, Texas, Utah, Wisconsin and Wyoming. Additional parties listed on the filing are the Arizona Corporation Commission and environmental agencies for Louisiana and North Carolina. The new challenge will likely be consolidated with two other 111(b) lawsuits filed by North Dakota and Murray Energy in the D.C. Circuit last week. In addition, a California-led coalition of 16 states and two cities filed on November 4 to intervene as respondents to defend the rule in the North Dakota challenge. According to their motion, “State and Municipal Intervenors have a compelling interest in defending the Final Rule as a means to achieve their goal of preventing and mitigating climate change harms in their states and municipalities.” California was joined on the motion by Connecticut, Delaware, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, New Hampshire, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington, the City of New York and the District of Columbia. For further information: http://www.4cleanair.org/sites/default/files/Documents/West-Virginia111(b)-Petition-for-Review11-3-15.pdf (West Virginia Petition for Review); http://www.4cleanair.org/sites/default/files/Documents/California-111(b)-Motion-toIntervene%2011-4-15.pdf (California Petition to Intervene) (6) Congressman Introduces Legislation to Strip EPA of Greenhouse Gas Regulatory Authority (November 3, 2015) – Congressman Gary Palmer (R-AL) introduced a bill to strip EPA of its authority to regulate greenhouse gas (GHG) emissions and separately void EPA’s recently finalized carbon emission limits for new and existing power plants. H.R. 3880, the Stopping EPA Overreach Act of 2015, proposes to eliminate EPA’s Clean Air Act authority over GHGs by modifying the definition of “air pollutant” to exclude carbon dioxide, water vapor, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride. Regarding EPA authority that may arise elsewhere to regulate GHGs, the bill prohibits EPA from using any part of the following statutes to require “regulation of climate change or global warming”: the Clean Air Act, the Federal Water Pollution Control Act, the National Environmental Policy Act, the Endangered Species Act and the Solid Waste Disposal Act. Finally, the bill requires EPA to conduct an employment impacts analysis on all future regulations, rules and policies and prohibit any found to have a negative employment impact. The bill has 113 cosponsors and has been referred to the House Committees on Energy and Commerce, Natural Resources, Transportation and Infrastructure and Agriculture. For further information: https://www.congress.gov/bill/114thcongress/house-bill/3880/ (7) House Science Committee Demands NOAA Response Amid Global Warming “Pause” Controversy (November 4, 2015) – House Science, Space 5 and Technology Committee Chairman Lamar Smith has written the National Oceanographic and Atmospheric Administration (NOAA) once again to demand documents and communications related to NOAA’s global temperature measurements and analysis. In June, the journal Science published a NOAA study finding that the rate of observed global warming during the past 15 years has matched or exceeded the rate observed during the second half of the 20th Century. The result contradicts the concept of a global warming “pause” frequently cited by climate change skeptics. The letter, addressed to NOAA Administrator Kathryn Sullivan, claims that NOAA has failed to respond adequately to an October 27 subpoena demanding materials related to the study’s development. NOAA has refused to provide the requested documents, claiming that Smith’s request is overly broad and raises confidentiality concerns. Instead, NOAA has pointed the committee toward publically available data and provided two informational briefings. According to Smith, “NOAA has failed to fully explain the conditions surrounding its process and procedures for adjusting upward temperature readings that eliminated the ‘pause’ in global warming. Deficiencies in NOAA’s response to the Committee’s request raise serious concerns about what role officials at NOAA, including political appointees, had in the decision to adjust the temperature data and widely publicize conclusions based on those adjustments.” The letter demands a full response to the original subpoena by November 6 and that NOAA’s Chief of Staff, Communications Director, Chief Scientist and Director of National Centers for Environmental Information sit for transcribed interviews by November 13. For further information: http://www.4cleanair.org/sites/default/files/Documents/11-4-15NOAA-SubpoenaFollow-up.pdf (8) House Approves Long-Term Surface Transportation Bill, Readies for Conference Committee (November 5, 2015) – The House of Representatives passed the Surface Transportation Reauthorization and Reform (STRR) Act by a vote of 363 to 64. Approval of the six-year, $325-billion authorization bill followed three days of debate during which 100 amendments (of the more than 270 that were filed) were considered. The House STRR Act, and the DRIVE Act passed by the Senate on July 30, 2015, will now go to Conference Committee where House and Senate conferees will negotiate and reconcile the bills with the goal of emerging with a final piece of legislation to go before both chambers. This work must be completed, and a bill signed into law by the President, by November 20, 2015 – the date by which the most recent highway and transit funding extension expires; if this deadline is not met, another funding “patch” will be necessary. The House Transportation and Infrastructure Committee has already named its conferees; additional House conferees, as well as Senate conferees, are still to be announced. For further information: http://transportation.house.gov/strr-act/ and https://www.congress.gov/bill/114th-congress/housebill/22?q=%7B%22search%22%3A%5B%22%5C%22hr22%5C%22%22%5D%7D &resultIndex=1 (9) EPA, California Notify VW of Findings of Additional Use of Defeat Devices, House Poses More Questions to VW (November 2-3, 2015) – EPA 6 and the California Air Resources Board (CARB) notified Volkswagen (VW) that recent testing has revealed evidence of defeat devices on still more vehicles manufactured by VW or VW-owned companies. The affected vehicles are certain model year 2014 through 2016 light-duty VW, Porsche and Audi diesels with 3.0liter engines. In its second Notice of Violation (NOV) to VW, EPA says, “VW knew or should have known that the software described [in the NOV] bypasses, defeats, or renders inoperative elements of the vehicle design related to compliance with the CAA emissions standards. This is apparent given the design of the defeat devices. As described [in the NOV], the software was designed to track federal test procedures and cause emission control systems to underperform when the software determined the vehicle was not being testing.” The agency indicates that its investigation is continuing. In its second In-Use Compliance letter to VW, CARB states that it is “very disappointed with this development as VW (along with all the other manufacturers) was alerted on September 25, 2015 that ARB would be immediately conducting defeat device testing. As you are well aware, a defeat device was neither described nor justified in the certification applications for the 3.0 liter diesel test groups submitted to U.S. EPA and ARB. Therefore, each vehicle so equipped would not be covered by a valid Certificate of Conformity or Executive Order and would be in violation of federal and state law.” ARB also indicates that its screening and testing of vehicles continues. On November 3, 2015, VW, Porsche and Audi announced that they were voluntarily discontinuing, until further notice, sales of the most recently affected vehicles. Meanwhile, in light of EPA’s and CARB’s new findings, the Majority and Minority leaders of the House Energy and Commerce Committee and Oversight and Investigations Subcommittee sent a letter to Michael Horn, President and CEO of Volkswagen Group of America, Inc., seeking “some basic facts and clarifications” regarding how defeat devices affect the operation of vehicles. Mr. Horn is asked to respond by November 17, 2015. For further information: http://www3.epa.gov/otaq/cert/violations.htm, http://www.arb.ca.gov/msprog/vw_info/vw_diesel_info.htm, http://press.porsche.com/news/release.php?id=958 and http://press.porsche.com/news/release.php?id=960 (10) VW Announces “Irregularities” in CO2 Emissions from 800,000 Vehicles Worldwide (November 3, 2015) – Volkswagen made still more news this week, when the company announced that during the course of internal investigations regarding diesel defeat devices that turn off NOx controls when vehicles are operating on the road, “irregularities were found when determining type approval CO2 levels.” VW indicates that “based on present knowledge” about 800,000 vehicles from the VW group could be affected by this latest finding. The scale of the CO2 irregularities is not yet known. In a statement, Mathias Müller, CEO of Volkswagen Aktiengesellschaft, said, “From the very start I have pushed hard for the relentless and comprehensive clarification of events. We will stop at nothing and nobody. This is a painful process, but it is our only alternative. For us, the only thing that counts is the truth. That is the basis for the fundamental realignment that Volkswagen needs.” For further information: https://www.volkswagen-media-services.com/en/detailpage/-/detail/Clarification- 7 moving-forward-internal-investigations-at-Volkswagen-identify-irregularities-inCO2levels/view/2857367/7a5bbec13158edd433c6630f5ac445da?p_p_auth=7BQwGAt S (11) EPA Releases Update to Motor Vehicle Emissions Model (November 4, 2015) – EPA’s Office of Transportation and Air Quality announced the release of MOVES2014a, a revised version of its Motor Vehicle Emission Simulator (MOVES2014) emissions modeling tool, the official model for state and local agencies to estimate volatile organic compounds (VOCs), nitrogen oxides (NO x), particulate matter (PM2.5 and PM10), carbon monoxide (CO), and other precursors from cars, trucks, buses, and motorcycles for SIP purposes and conformity determinations outside of California. EPA says MOVES2014a incorporates “significant improvements” in calculating onroad and nonroad equipment emissions. The model does not significantly change the criteria pollutant emissions results of MOVES2014 and therefore is not considered a “new” model for SIP and transportation conformity purposes. For onroad emissions, MOVES2014a adds new options for the input of local vehicle miles traveled, includes minor updates to the default fuel tables, and corrects an error in MOVES2014 brake wear emissions. EPA has determined that the latter change results in small decreases in PM emissions, while emissions for other criteria pollutants remain essentially the same as in MOVES2014. The updated model also corrects an error in the way hydrocarbon emissions are apportioned into the inputs needed by air quality models, such as CMAQ and CAMx. For the calculation of nonroad equipment emissions, MOVE2014a adds VOCs and toxics to the list of pollutants that can be directly estimated for nonroad equipment. It also updates the gasoline fuels used for nonroad equipment to be consistent with those used for onroad vehicles and provides users with more flexibility in how nonroad model output is organized. The change in default fuels leads to a small increase in nonroad NOx emissions in some locations, EPA says. For further information: http://www.epa.gov/otaq/models/moves/index.htm (12) House Members Urge EPA Not to Breach E10 Blendwall in Forthcoming 2016 RFS Rule (November 4, 2015) – With the approach of the court-ordered November 30, 2015 deadline for EPA to promulgate final Renewable Volume Obligations (RVO) for 2014, 2015 and 2016 under the Renewable Fuel Standard (RFS), 184 members of the House of Representatives sent a letter to EPA Administrator Gina McCarthy urging that the agency not breach the ethanol blendwall – “the point at which the gasoline supply is saturated with the maximum amount of ethanol that the current vehicle fleet, marine and other small engines, and refueling infrastructure can safely accommodate.” The signatories express their agreement with EPA’s conclusion in its current RVO proposal for 2014, 2015 and 2016 that “the E10 [gasoline blended with 10 percent ethanol] blendwall is a binding constraint.” They are “gravely concerned, however, that despite the Agency’s recognition of the blendwall, the 2016 proposal acknowledges that it will be breached nonetheless.” The lawmakers cite in their letter several studies concluding that “detrimental economic harm” may result from a breach of the E10 8 blendwall. Therefore, they call upon EPA to invoke its statutory authority to waive the conventional biofuel volumes mandated by the Energy Independence and Security Act of 2007 to keep blending requirements below E10 “and to help limit the economic and consumer harm this program has already caused.” Also related to the RFS, the Center for Regulatory Solutions this week released a report, How Corn Ethanol Mandates Have Hurt Ohio’s Environment and Economy, in which the authors conclude, among other things, that RFS requirements have resulted in an additional 1.92 million metric tons of carbon dioxide in Ohio since 2005. The Center for Regulatory Solutions is a project of the Small Business and Entrepreneurship Council, a nonprofit, nonpartisan advocacy and research organization. For further information: http://flores.house.gov/uploadedfiles/rfsletter-to-admin-mccarthy-11-4-2015.pdf and http://centerforregulatorysolutions.org/new-crs-report-how-corn-ethanol-mandateshave-hurt-ohios-environment-and-economy/ (13) House Science Subcommittees Hold Joint Hearing to Review Costs and Benefits of RFS (November 3, 2015) – Two House Science Subcommittees held a joint hearing to review the environmental impacts and costs of the Renewable Fuel Standard (RSF) based on the program’s 10-year history. The Subcommittees on Environment and Oversight also examined the economic impacts and technical challenges associated with meeting future RFS requirements with a particular focus on the impact of the RFS on the price of food and fuel. Among the questions and issues of key interest were whether, after 10 years, the overall economic and environmental impact of the RFS has been positive or negative; whether the U.S. transportation fuel market is capable of absorbing the higher volumes of E85 and E15 that will be necessary to meet future statutory RFS requirements and what impacts such higher volumes will have on consumer prices; and how current emissions from biofuels compare with emissions that were predicted before enactment of the RFS. In his opening statement, Environment Subcommittee Chairman Jim Bridenstine (R-OK) called the RFS a “complex and misguided mandate,” “an example of the federal government picking winners and losers by forcing the use of renewables in transportation fuels” and an “egregious perversion of the free market” and said it is time for Congress to repeal the RFS. Rep. Barry Loudermilk (R-GA), Chairman of the Oversight Subcommittee, said that 10 years into the RFS program “demand for gasoline is decreasing, our country is now considering exporting crude oil, and we now know ethanol and biofuels are not as clean as we once thought.” Witnesses who testified at the hearing included Terry Dinan of the Congressional Budget Office; Ed Anderson of WEN-GAP, LLC; John DeCicco of the University of Michigan Energy Institute; Brooke Coleman of the Advanced Biofuels Business Council; and Charles Drevna of the Institute for Energy Research. For further information: https://science.house.gov/legislation/hearings/subcommitteeoversight-and-subcommittee-environment-hearing-renewable-fuel 9 (14) California’s Readopted LCFS Faces Legal Challenge (October 30, 2015) – POET, LLC, a producer of ethanol, filed a petition in the Superior Court of California, County of Fresno, challenging the California Air Resources Board’s (CARB) recently readopted Low Carbon Fuel Standard (LCFS), as well as a related new measure establishing standards for the regulation of alternative diesel fuels (ADF). CARB readopted the LCFS standard, which requires a 10-percent reduction in the carbon intensity of transportation fuels by 2020, and the ADF rule on September 25, 2015 (see related article in the September 21-25, 2015 Washington Update). In its verified petition for writ of mandate and complaint for declaratory and injunctive relief, POET alleges violations of the California Environmental Quality Act and the California Administrative Procedure Act as well as, among other things, failure on the part of CARB to analyze or mitigate the impacts of the existing LCFS; consider feasible alternatives to address adverse impacts; adopt adequate mitigation of nitrogen oxide (NO x) emissions associated with biodiesel; analyze, quantify or mitigate impacts found to be “significant and unavoidable”; analyze the impacts of fuel shuffling, certain exemptions, certain biodiesel blends and new technology diesel engines; and analyze or discuss criteria pollutants other than NOx. For further information: http://www.4cleanair.org/sites/default/files/Documents/govdoc20151103168222.pdf (15) Court Sets Schedule for Submittal of Preliminary Documents in Challenge to EPA’s Ozone NAAQS (October 29, 2015) – The U.S. Court of Appeals for the District of Columbia Circuit issued an order identifying dates by which specified legal documents must be submitted in the case of Murray Energy v. EPA challenging EPA’s 2015 final ozone National Ambient Air Quality Standards. Under the schedule, petitioners have until November 30, 2015 to file their statements of issues to be raised. Petitioners and respondent EPA have until December 14, 2015 to file dispositive motions, if any. In separate petitions last week, Murray Energy and a group states filed for review of the ozone NAAQS (see related article in the October 26-30, 2015 Washington Update); the D.C. Circuit, on November 3, 2015, consolidated the two cases under Case No. 15-1385. For further information: http://www.4cleanair.org/sites/default/files/Documents/Litigation-O3NAAQSCourtSchedule-102915.pdf (16) House Hearing Examines Two Regulatory Reform Bills (November 3, 2015) – The House Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust Law held a hearing to take testimony on two regulatory reform bills pending before the Committee. H.R. 3438, the Require Evaluation Before Implementing Executive Wishlists (REVIEW) Act, introduced by Rep. Thomas Marino (R-PA), would prohibit laws from taking effect until after they have gone through judicial review. H.R. 2631, the Regulatory Predictability for Business Growth Act, introduced by Rep. Steve Russell (R-OK), would require “adequate” notice to the public of revisions to interpretative rules. In his opening statement, Rep. Bob Goodlatte (R-VA), Chairman of the House Judiciary Committee, said the 10 Committee is continuing its efforts “to deliver urgently needed reforms of Washington’s regulatory system – a system that virtually every day places new obstacles in the path of American jobs and economic growth.” Those who testified at the hearing included Jeffery Bossert Clark of Kirkland & Ellis; Paul R. Noe of the American Forest & Paper Institute; William W. Buzbee of Georgetown University Law Center; and Edward Brady of Brady Homes Illinois. For further information: http://judiciary.house.gov/index.cfm/hearings?ID=EEE32235-37F1-44A9-BB12B827B50B9551, https://www.congress.gov/bill/114th-congress/housebill/2631?q=%7B%22search%22%3A%5B%22%5C%22hr2631%5C%22%22%5D %7D&resultIndex=1 and https://www.congress.gov/bill/114th-congress/housebill/3438?q=%7B%22search%22%3A%5B%22%5C%22hr3438%5C%22%22%5D %7D&resultIndex=1 (17) EPA Proposes Amendments to NSPS for Stationary Compression Ignition Internal Combustion Engines (November 6, 2015) – EPA published proposed amendments to the New Source Performance Standards for stationary compression ignition internal combustion engines (80 Fed. Reg. 68808). Under the proposal, owners and operators of affected engines would be allowed to temporarily override performance-related features when the engines are needed to respond to an emergency that poses a risk to human life, such as a fire, flood or hurricane. Engine operators would be required to report to manufacturers those instances when such temporary overrides take place and the manufacturers, in turn, would submit an annual report to EPA summarizing the use of temporary overrides during the previous year. The proposal would also revise criteria for defining remote areas of Alaska, which are currently defined as those not accessible by the Federal Aid Highway System (FAHS), to specify that areas that are accessible by the FAHS can still be considered remote if certain conditions are met. Under the current rule, engines in remote areas of Alaska are not required to meet the most stringent NOx standards, which, in effect, necessitate the use of add-on controls. EPA will accept public comments on this proposal until December 21, 2015. For further information: http://www.gpo.gov/fdsys/pkg/FR2015-11-06/pdf/2015-28342.pdf (18) Supreme Court Refuses to Consider Animal Feeding Operations Emissions Lawsuit (November 2, 2015) – The U.S. Supreme Court has refused to review an April decision from the U.S. Court of Appeals for the D.C Circuit dismissing a lawsuit to force EPA to regulate emissions from animal feeding operations (AFOs). The Iowa-based plaintiffs had demanded that EPA regulate ammonia and hydrogen sulfide emissions as criteria pollutants, and AFOs as a source category under the New Source Performance Standards program. They argued that, even without a formal endangerment finding from EPA, the prevalence of scientific evidence that ammonia, hydrogen sulfide and other AFO emissions endanger public health should trigger regulation under the Clean Air Act (CAA). The D.C. Circuit rejected that argument and affirmed that EPA retains the discretion to review the science and make its own endangerment findings. The Supreme Court’s refusal to review the case, captioned Zook v. EPA (No. 15-350), 11 leaves the D.C. Circuit dismissal intact. For further information: http://www.supremecourt.gov/search.aspx?filename=/docketfiles/15-350.htm (19) EPA Extends Public Comment Period for Oil and Natural Gas Proposals (November 3, 2015) – EPA has extended the public comment period for a package of proposed rules and draft guidance related to the oil and natural gas sector until December 4, 2015. The extension applies to EPA’s proposed New Source Performance Standards (NSPS) (80 Fed. Reg. 56,593), draft Control Techniques Guideline (80 Fed. Reg. 56,577), proposed Source Determination Rule (80 FR 56, 579) and proposed Federal Implementation Plan for New and Modified Minor Sources in Indian Country (80 Fed. Reg. 56,554). The previous comment deadline was November 17. For further information: http://www3.epa.gov/airquality/oilandgas/pdfs/20151103commentextension.pdf (20) Arizona Copper Smelter Agrees to Enforcement Settlement Calling for Controls and Mitigation Projects (November 3, 2015) – A copper ore processing, concentrating and smelter facility in Arizona has agreed to an enforcement settlement related to alleged violations of the Clean Air Act (U.S. v. ASARCO LLC, D. Ariz., No. 2:15-cv-02206-JZB). The proposed settlement calls for ASARCO in Hayden, Arizona, to install $150-million worth of new equipment and air pollution control technology, including upgraded ventilation hoods and a new baghouse. ASARCO must also pay a civil penalty of $4.5 million, provide $8million worth of local environmental mitigation projects and replace a diesel switch locomotive with a new, cleaner model costing $1 million. The company will also implement an improved dust control plan and operate five ambient air monitors in nearby communities. According to the federal government, the enforcement action will reduce particulate matter (PM) containing hazardous air pollutants (HAPs), such as lead and arsenic. The action is expected to result in reductions of 8.5 tons per year (tpy) of HAPs and 3,500 tpy of PM. Additionally the measures will reduce sulfur dioxide emissions by 90 percent (19,000 tpy). The environmental mitigation projects include $6 million for a road paving project and $2 million for lead-based paint testing and abatement in homes, schools and other public buildings in nearby communities. The proposed settlement will be subject to a 30-day public comment period and court approval. For further information: http://www2.epa.gov/enforcement/asarco-llc-settlement (21) Court Upholds SO2 Designations (November 3, 2015) – The U.S. Court of Appeals for the District of Columbia Circuit denied combined petitions challenging EPA’s designation of areas of Michigan and Montana as nonattainment of the 2010 1-hour sulfur dioxide (SO2) National Ambient Air Quality Standard (NAAQS). In August 2013, EPA designated the two areas in question – Wayne County, Michigan and Yellowstone County, Montana – along with 26 other areas, during the first round of designations under the SO2 NAAQS. In Treasure State Resource Industry Association v. EPA (Case No. 13-1263), petitioners Treasure State and United States Steel Corporation challenged these two designations. Treasure State argued, with respect to Yellowstone County, Montana, that the data upon which EPA relied to make the nonattainment designation were 12 unreliable and, therefore, the agency’s reliance on them was arbitrary and capricious. Treasure State also asserted that EPA had retroactively applied the 2010 SO2 NAAQS by considering data from 2009, which predated the standard, and that such retroactivity was not in accord with the Clean Air Act. For its part, U.S. Steel, which has a plant in Wayne County, Michigan, did not take issue with the designation of Wayne County as nonattainment but argued that it was unreasonable for EPA to make the designation without simultaneously making a nonattainment designation for at least a portion of neighboring Monroe County, Michigan, where there is also a coal-fired power plant. U.S. Steel contended that SO2 emissions from the Monroe plant contribute to SO2 levels in Wayne County and, thus, EPA’s failure to designate Monroe County as nonattainment violates the statutory requirement that any area “that contributes to ambient air quality in a nearby area that does not meet” the NAAQS must be included in the nonattainment designation. The D.C. Circuit rejected these arguments and denied the petitions for review. For further information: http://www.4cleanair.org/sites/default/files/Documents/TreasureStateResIndAssnv EPA(DCCir11-3-15).pdf (22) EPA Issues Final Reconsideration of Three Provisions of Boiler MACT (November 5, 2015) – EPA announced final revisions to the 2013 amendments to the National Emission Standard for Hazardous Air Pollutants (NESHAP) for Major Sources: Industrial, Commercial, and Institutional Boilers and Processors (Boiler MACT). These revisions follow EPA’s reconsideration of three provisions of the final rule undertaken because the agency did not provide adequate opportunity for notice and comment on them. The provisions relate to 1) the definition of startup and shutdown periods and the work practices that apply during these periods, 2) carbon monoxide (CO) emission limits based on a 130-parts-per-million minimum CO level and 3) the use of a particulate matter continuous parameter monitoring system and the consequences of exceeding the operating parameter. In its final action, EPA retains all three of the reconsidered provisions; finalizes a proposed alternate definition of startup and proposed alternate work practice standards to be used during startup periods; finalizes various clarifying changes and corrections intended to increase accuracy, clarity and consistency; and finalizes the removal of the affirmative defense provision from the rule based on the recent court decision vacating the provision in the Portland Cement NESHAP. According to EPA, these final revisions will not result in significant changes in the costs, emission reductions or health benefits associated with the Boiler MACT nor will they affect coverage of the final rule. For further information: http://www3.epa.gov/airquality/combustion/actions.html (23) U.S. Joins International HFC Phase-Out Agreement (November 5, 2015) – At the 27th Meeting of the Parties to the Montreal Protocol, held this week in Dubai and in which representatives of 197 countries participated, agreement was reached on a phase-out of hydrofluorocarbons (HCFs), some of the most potent manmade greenhouse gases – 12,000 times more than comparable amounts of carbon dioxide – and key contributors to global climate change. Details of the phase-out, to be added to the Montreal Protocol, will be negotiated over the next 13 year. In a press statement, U.S. Secretary of State John Kerry said, “This is a major accomplishment. The Montreal Protocol is among the most successful multilateral environmental treaties in history. Amending it to include HFCs could set a course for actions that would avoid 0.5 C of warming by the end of the century.” Kerry also remarked that the progress made in Dubai “lays the groundwork for even greater cooperation toward a successful outcome in Paris [the 21st United Nations Conference on Climate Change, beginning November 30, 2015].” For further information: http://www.state.gov/secretary/remarks/2015/11/249230.htm The Week Ahead Veteran’s Day – November 11, 2015 EPA Hearing on a Proposed Federal Implementation Plan for the Clean Power Plan, in Pittsburgh, PA – November 12-13, 2015 Senate Committee on Homeland Security and Governmental Affairs Hearing on "The Impact of Federal Regulations: A Case Study of Recently Issued Rules," in Stevens Point, WI – November 13, 2015 NACAA 444 North Capitol Street, NW, Suite 307 Washington, DC 20001 Tel: (202) 624-7864/Fax: (202) 624-7863 4cleanair@4cleanair.org