Executive Director’s Report · 2018. 1. 18. · FY 2017 Appropriations FY 2016 (Omnibus H.R. 2029) Pre-rescission Amounts FY 2017 President’s Request NACAA Recom-mendation House

Executive Director’s Report

National Association of Clean Air Agencies

Fall Membership Meeting

Minneapolis, Minnesota

October 17, 2016

S. William Becker

What I Will Cover

Major Legislation in 114th Congress

Energy

Ozone

Regulatory Reform

Science

Other Notable Issues

FY 2017 Appropriations

Global Warming

Update on NACAA’s Model State GHG Plans

West Virginia v. EPA

Upcoming NACAA Activities

Major Legislation – Energy

Senate passed S. 2012, the Energy Policy Modernization Act of

2016, on 4/20/16 by vote of 85-12

Bipartisan measure including, among many other provisions: Significant increases in energy research budget (including clean coal

technologies)

Expanded weatherization and energy efficiency for buildings

Accelerated approval of pipelines and LNG exports

A declaration that biomass is “carbon neutral”

Last December, the House passed H.R. 8, the North American

Energy Security and Infrastructure Act of 2015 – far more

controversial than S. 2012; Administration has threatened to veto

because it weakens many of DOE’s existing programs

Conference committee negotiations began on September 8, 2016;

If agreement is not reached before the conclusion of this session,

the process starts over in the 115th Congress

Major Legislation – Ozone NAAQS

Ozone Standards Implementation Act of 2016 (H.R. 4775, S.

2882)

Postpones implementation of 2015 ozone NAAQS by up to 8 years

Allows consideration of technological feasibility when EPA sets any NAAQS

Extends NAAQS review cycle from 5 years to 10 years

Exempts permitted sources from new/revised NAAQS if EPA doesn’t publish

implementation rules/guidance when it publishes NAAQS; instead, sources

allowed to meet preconstruction review requirements of outdated standard

Allows stagnation, drought and high temperatures to be considered

exceptional events

Eliminates requirement for contingency measures in Extreme ozone

nonattainment areas

Approved by House 6/8/16; Senate has not considered; White House

threatened veto 6/7/16

Major Legislation – Regulatory Reform

Regulatory Accountability Act (H.R. 185) – Requires

adoption of least costly version of a rules

Approved by House 1/13/15; WH threatened veto 9/12/15

Unfunded Mandates Information and Transparency Act

(H.R. 50 & S. 189) – Requires more detailed analysis of cost

impacts of proposed regulations on business and state/local

governments


Small Business Regulatory Improvement Act (H.R. 527) –

Requires federal agencies to analyze indirect economic effects

of proposed rules on small businesses even if the business is

not directed regulated by rule



REINS Act (H.R. 427, S. 226) – Requires Congressional

approval of major rules


SCRUB Act (H.R. 1155, S, 1683) – Establishes a regulatory

commission to make recommendations for eliminating

unnecessary/costly rules Approved by House 1/7/16; WH threatened veto 1/5/16

Sunshine for Regulatory Decrees and Settlements Act

(H.R. 712, S. 378) – Curbs abuse of ‘Sue and Settle”

consent decrees & prohibits OMB from considering benefits

when estimating total costs of proposed and final rules Approved by House 1/7/16; WH threatened veto 1/5/16

Folds in ALERT Act (H.R. 1759) & Providing Accountability

Through Transparency Act (H.R. 690)


Regulatory Integrity Act of 2016 (H.R. 5226) – Requires

federal agencies to post all public communications the agency

issues during proposed rule stage.


REVIEW Act (H.R. 3438 & S. 1927) – Prohibits any “high-

impact” rule from taking effect until final disposition of all actions

seeking judicial review of the rule.


RAPID Act (H.R. 348) – Streamlines permitting of federally

funded & permitted projects; sets deadlines for NEPA reviews.


Major Legislation – Science

Secret Science Reform Act (H.R. 1030 & S.S. 544) –

Requires all information on which EPA relies for regulatory

actions to be “best available science”


EPA Science Advisory Board Reform Act Act (H.R. 1029

& S. 543) – Modifies EPA’s selection process for members

of the SAB


Major Legislation – Other Notable Issues

Diesel Emissions Reduction Act (S. 2816, H.R. 5913) –

Extends authorization for funding DERA at $100 million a

year for another five years.

Approved by Senate 7/18/16 (as amendment to S. 2012, the

Energy Policy Modernization Act)

NACAA joined with coalition of industry groups and

environmental and public health organizations to send a letter

to 67 House Members urging support for H.R. 5913 (9/8/16)

Major Legislation – Other Notable Issues FAST Act – Bipartisan, five-year, $305-billion surface

transportation law authorizing CMAQ at ~$12 billion over 5

years and making port-related landside equipment in PM2.5

nonattainment and maintenance area eligible for CMAQ

Signed by President Obama 12/4/15

Midnight Rule Relief Act (H.R. 4612) – Prohibits federal

agencies from proposing or finalizing “major” rules from the

day after a presidential election through Inauguration Day.

Approved by House 7/6/16 (as part of H.R. 4361); WH threatened

veto 7/5/16

SENSE Act (H.R. 3797) – For power plants fueled by coal

refuse, modifies CSAPR to allocate additional SO2 allowances

and MATS to provide alternative compliance options regarding

SO2 and hydrogen chloride emissions.

Approved by House 3/15/16; WH threatened

veto 3/15/16


Status of Appropriations Bills

Continuing Resolution – Congress adopted a CR to fund the federal

government through December 9, 2016 at FY 2016 levels (no air-related

riders)

House – Adopted H.R. 5538 on July 14, 2016

Senate – Senate Appropriations Committee approved S. 3068 on June 16,

2016; No floor action was taken

Possible Actions after December 9th Deadline for CR

Adoption of individual bills for separate federal agencies and departments

(highly unlikely)

Adoption of “omnibus” bill that rolls all federal programs into one enormous

funding measure (more likely)

Adoption of CR for the remainder of the fiscal year

(possible)


FY 2016

(Omnibus H.R.

2029)

Pre-rescission

Amounts

FY 2017

President’s

Request

NACAA

Recom-

mendation

House Bill

(H.R. 5538)

Senate Bill

(S. 3068)

EPA Budget $8.1 billion $8.27 billion $7.87 billion $8.12 billion

§103/105 Grants

$228.2 million $268.2 million $268.2 million $228.2 million $228.2 million

PM2.5

Monitoring

Stays in

§103

Yes

No – Begins 4-

year phased-in

transfer to §105

Yes

Yes

Yes

DERA $50 million $10 million $10 million $100 million $25 million

Targeted

Airshed

Grants

$20 million $0

$40 million $20 million

Revised

Regional

Allocation

Formula

Revised formula

to be

implemented

Revised formula

to be

implemented

EPA to include

revisions in

Cong.

Justification

Funds to be

allocated as in FY

2016


Additional Provisions and Riders

Greenhouse Gases:

Prohibits funding to address GHG emissions under § 111(b) [modified/reconstructed

plants] or §111(d) [existing plants] (House bill)

Prohibits issuance of Clean Energy Incentive Program giving credit to states for early

CPP action (House bill)

Prohibits rules/guidelines for methane emissions from oil and natural gas sector (House

bill)

Prohibits EPA using Section 115 international provisions to regulate GHGs (House bill)

Prohibits funds to regulate trailers under GHG emissions and fuel-efficiency standards

for medium- and heavy-duty engines and vehicles-phase 2 (House bill)

Prohibits EPA’s “Social Cost of Carbon” estimates in rulemaking or guidance until they

have been reviewed and revised (House bill)


Additional Provisions and Riders (continued)

Greenhouse Gases (continued):

Prohibits Title V permitting regulations for GHGs related to livestock production and

mandatory reporting of GHG emissions from manure management (House and Senate

bills)

Exempts “glider kits” from Phase 2 heavy-duty truck GHG rules. (House bill)

Ozone – Postpones implementation of 2015 ozone NAAQS by up to 8 years

(House bill)

Risk Management Program – Prohibits rulemaking on accidental release

prevention requirements (House bill)

Glass Manufacturers – Prohibits rules under Section 112 for glass

manufacturers that do not use continuous furnaces (House bill)

Multipurpose Grants – Eliminated funding of these grants (Senate bill)

NACAA’s Model State GHG Plans

NACAA released an electronic version of Implementing EPA’s Clean Power

Plan: Model State Plans to NACAA’s members on May 13, 2016 and to the

public on June 1; Many stakeholder groups invited us to meet with them to

discuss the document, including, among others:

American Public Power Association

Energy Efficiency for All

National Association of State Energy Officials (NASEO) Board of Directors

Business Council on Sustainable Energy

NACAA recently published hard copies of the Model and mailed them to each

state air agency, a selection of local air agencies, key administration officials,

and other important stakeholder groups

NACAA will continue to offer technical assistance related to the Model

West Virginia v. EPA Shortly after the Clean Power Plan was published in the Federal

Register on October 23, 2015, more than two dozen states and

numerous other parties filed petitions asking the U.S. Court of

Appeals for the D.C. Circuit to overturn and stay the rule

The D.C. Circuit rejected the stay motions on January 21, 2016;

however, on appeal, the Supreme Court on February 9, 2016

ordered the rule to be stayed pending the outcome of the litigation

The D.C. Circuit subsequently scheduled oral arguments for

September 27, 2016 and announced that the challenge would be

heard by the full court sitting “en banc” rather than by a traditional

three-judge panel


Courtroom seating for the oral arguments was limited and demand was

very high; lines began forming outside the courthouse well before 5 a.m.

In spite of the case’s complexity, the judges were well-prepared and very

engaged, asking hard questions of both sides for seven hours

The argument was divided into five distinct issue areas:

Whether EPA could look outside the “fenceline” to set BSER

Whether EPA’s use of Section 112 to regulate power plant emissions

prohibits it from using Section 111(d) to regulate power plants

Whether the Clean Power Plan impermissibly commandeers or

coerces state governments

Whether the public had adequate notice of the rule before it was

finalized

Whether EPA’s building blocks meet other BSER requirements


The court seemed most interested in the “fenceline” issue but also spent

significant time examining the relationship between Section 111(d) and

Section 112

An overarching theme: whether the rule is “transformative” such that the

court should not afford EPA its usual level of deference; whether EPA

required a “clear statement” from Congress to exercise authority in the way

it did

Outcomes are notoriously difficult to predict from oral arguments, but most

observers gave EPA the edge

The “fenceline” issue appeared to be the toughest for the agency

Most do not expect the D.C. Circuit to release a decision until early 2017

Most expect the case to go to the Supreme Court, but the Scalia vacancy

and the upcoming election make it even more difficult than usual to

anticipate what will happen


Holding NACAA Monitoring Steering Committee meeting

with EPA in January 2017

Commenting on EPA proposal to revise regulations

governing Title V petitions process

Helping members share information about state and local e-

permitting initiatives

Following progress of E-Enterprise Combined Air Emissions

Reporting project

Facilitating members’ involvement in November 2016

Regional/State/Local Modelers’ Workshop

Following progress of new MOVES Review Workgroup


Conducting stakeholder outreach and training for the

NACAA Model State GHG Plans, including technical

webinars for NACAA members

Continuing “3-N” collaboration with NARUC and NASEO

regarding the CPP and related implementation issues

Monitoring CPP and other Clean Air Act litigation

Commenting on EPA’s Clean Energy Incentive Program

proposal

Working with NASEO to provide technical assistance for

energy efficiency projects


Following FY 2017 Congressional appropriations process

Monitoring developments related to the Mercury and Air

Toxics Standards judicial and regulatory proceedings

Following developments related to the major source

Industrial Boiler rule judicial and regulatory proceedings

Working with EPA on addressing major sources of

hazardous air pollutants without listed source categories,

including methyl bromide fumigation

Working with state and local agencies as EPA implements

streamlined NATA review process


Assisting members with implementing the NAAQS and

Regional Haze requirements

Coordinating and conducting, with ECOS and EPA, the next

annual review of progress on addressing the SIP backlog

Commenting on EPA’s proposed 2015 ozone NAAQS

implementation rule

Continuing efforts with WESTAR and NESCAUM to accelerate

retirement of old residential wood-burning devices

Advocating for EPA to undertake a rulemaking to establish a

national ultra-low NOx standard for onroad heavy-duty vehicles

and engines

Assisting states and localities in most effectively using

Mitigation Trust Funds allotted under the VW consent decree

Documents

Executive Director’s Report · 2018. 1. 18. · FY 2017 Appropriations FY 2016 (Omnibus H.R. 2029) Pre-rescission Amounts FY 2017 President’s Request NACAA Recom-mendation House