Watching Government: GHG rules bring higher costs

Jan. 25, 2010
The US Environmental Protection Agency confirmed that businesses will be subject to significant regulations and higher costs and endure more regulation as a result of four greenhouse gas (GHG) rules the agency has proposed or finalized, two US House Republicans said.

The US Environmental Protection Agency confirmed that businesses will be subject to significant regulations and higher costs and endure more regulation as a result of four greenhouse gas (GHG) rules the agency has proposed or finalized, two US House Republicans said.

Joe Barton (Tex.), ranking minority member of the House Energy and Commerce Committee, and Greg Walden (Ore.), a committee member, asked in their Nov. 19 letter if the agency considered cumulative impacts when it was developing its GHG endangerment finding.

EPA did not, Assistant Administrator Gina McCarthy said in her Jan. 12 response. She also said EPA has no documents regarding the potential shift or loss of jobs that may result from implementing regulations as a result of that finding including the final mandatory reporting rule, the proposed light-duty vehicles rule, and the proposed tailoring rule relating to the prevention of significant deterioration and Title V permitting programs.

'Absolute determination'

"The Obama administration's absolute determination to issue an endangerment finding within its first year without fully considering the potentially severe economic and job impacts raises real concerns," said Barton.

"EPA's endangerment finding, and the agency's proposed global-warming regulations, will cumulatively impose billions of dollars in new annual costs on businesses and consumers, drive up the costs of energy and other goods and services, and contribute to the flight of US manufacturing and industry overseas," he said.

He said McCarthy confirmed in her response that violations of the new reporting rule, proposed light-duty vehicles rule, and proposed tailoring rule could give rise to a range of civil enforcement and penalties along with possible citizen lawsuits.

Reviewing petitions

Responding to the questions about additional GHG rulemakings that EPA might consider, McCarthy said EPA was reviewing petitions from states and organizations asking that it use its authority under the Clean Air Act to regulate GHGs from other transportation sources including aircraft, ocean-going vessels, nonroad engines and vehicles, and fuels used in motor vehicles, nonroad vehicles, and aircraft.

"EPA has received petitions, public comments, and lawsuits seeking [GHG] emission controls under [CAA] Section 111 for seven categories of sources: petroleum refineries, nitric acid plants, utility boilers, oil and gas production, landfills, concentrated animal feeding facilities, and coal preparation facilities," she said, adding, "The agency has made no decision on these requests with one exception: [For] coal preparation facilities, we declined to set standards for GHGs."

Barton said McCarthy also refused to provide assurances that the proposed GHG regulations would not result in job losses or employment shifts, saying only that the agency and administration "are committed to taking actions that promote public health and safety, environmental protection, and economic prosperity" and that they believe these goals are complementary.

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