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Greenhouse Gases: Federal Regulatory Experience
Spring Environmental Law & Texas Regulatory SymposiumAustin, Texas April 15, 2010
James W. YarbroughU.S. EPA-Region 6
Outline
Greenhouse Gas (GHG) Mandatory Reporting Rule
Endangerment and cause or contribute to findings
Tailoring Rule
GHG vehicular emissions and Combined Automotive Fleet Economy (CAFE) standards
Renewable Fuel Standard
Geosequestration Regulations
Executive Order 13514
Summarizing: What more may happen in 2010?
Partnerships
National Greenhouse Gas Reporting Rule
Effective January 1, 2010 Requires emitters > 25,000 mt CO2-e per year
and 16 “all-in” source categories to annually report to EPA 6 GHG pollutants
Does not require GHG controls
Background Directed by Congress in 2008 Appropriations Act
Proposal signed March 10, 2009
Public Comment Period (April 10 – June 10, 2009)
Final rule signed September 22, 2009
Published in Federal Register October 30, 2009
Took effect January 1, 2010
Purpose of the Rule
Requires reporting of greenhouse gas (GHG) emissions from all sectors of the economy in the United States
Provides accurate and timely data to inform future climate change policies and programs
Does not require control of GHG
Key Elements of the Rule Annual reporting of GHG by:
25 source categories 5 types of suppliers of fuel and industrial GHG Motor vehicle and engine suppliers (except light duty
sector)
25,000 metric tons CO2e per year reporting threshold for most sources; capacity-based thresholds where feasible
Monitoring begins January 1, 2010; first reports due March 31, 2011
Direct reporting to EPA electronically EPA verification of emissions data Coming up: FR notices in 2010 on new source categories,
electronic reporting, CBI
About 10,000 U.S. Facilities Covered
0
20
40
60
80
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120
636
121
150
167
315
317
425
1108
1502
2551
3000
Other
Iron and Steel
Petroleum Refineries
GHG Suppliers
Petroleum Product Suppliers
Vehicle Manufacturers
Pulp and Paper
Electricity Generation
Natural Gas Suppliers
Landfills
Stationary Combustion
1 3 4 5 5 8 9 13 13 14 1423
41 4555
8089
107107
What GHGs are Reported? CO2
CH4 (methane)
N2O (nitrous oxide)
Fluorinated GHGs HFCs (hydrofluorocarbons) PFCs (perfluorocarbons) SF6 (sulfur hexafluoride) Other fluorinated gases
Who Reports?
Facility based reporting for all source categories for which there are methods
Limited exceptions for a few reporters (e.g., fuel importers, vehicle and engine manufacturers outside of the light-duty sector)
Source Categories Not Included in Final Rule
EPA plans to further review public comments and other information before deciding on these subparts:
Electronics manufacturing Ethanol production Fluorinated GHG production Food processing Magnesium production Oil and natural gas systems Sulfur hexafluoride (SF6) from electrical equipment Underground coal mines Industrial landfills Wastewater treatment Suppliers of coal Geologic sequestration
Facilities with these source categories could be covered by the rule based on GHG emissions from stationary fuel combustion sources.
Endangerment and Cause or Contribute Findings
On April 2, 2007, in Massachusetts v. EPA, greenhouse gases are air pollutants covered by the Clean Air Act. Administrator must determine whether or not emissions of
greenhouse gases from new motor vehicles cause or contribute to air pollution
Administrator signed proposed “Endangerment and Cause or Contribute Findings for Greenhouse Gases under the Clean Air Act” April 17, 2009 (published in FR April 24, 2009)
Administrator signed the final findings on December 7, 2009
Final notice appeared in FR December 15, 2009
Final rule was effective January 14, 2010
At least 9 legal challenges to date
Stationary Sources and Proposed PSD and Title V Greenhouse Gas Tailoring Rule December 18, 2008, memo from former Administrator
Johnson February 17, 2009: reconsideration of Johnson memo
but does not take action to stay Johnson memo effectiveness (Administrator Jackson to Sierra Club)
“Tailoring rule” proposed September 30, 2009 Applicability Covers ~70% of the national GHG emissions from
stationary sources 14,000 large sources will require Title V permits (3,000
new) 400 new/modifications will require PSD review (100
new) Tailoring rule to be finalized in April 2010 and effective
January 2011?
Q&A on tailoring rule
Administrator Jackson reply to letter from Sen. Rockefeller and other Senators February 22, 2010
March 3, 2010 New York Times report of Administrator’s comments
GHG Vehicular Emissions and CAFÉ Standards
Rapid Increase in Transportation Greenhouse Gas Emissions in US
Source: US Emissions Inventory (April 2008) EPA 430-R-08-005
Electricity distributed to other sectors
GHG (2,193 mmt CO2-eq, 2007)
Rail3%
Cars & Light Trucks
56%
Medium- & Heavy-Duty Trucks
18%
Aviation9%
Nonroad9%
Pipelines2%
Marine3%
INVENTORY OF U.S. GREENHOUSE GAS EMISSIONS AND SINKS: 1990-2007 (April 2009).
U.S. Transportation Sector GHG Emissions
Joint Rulemaking to Establish Vehicle GHG
Emissions and CAFÉ Standards
Establishes Vehicle GHG Emissions and CAFÉ Standards EPA: standards for emissions of greenhouse gases under
the Clean Air Act DOT’s National Highway Traffic and Safety
Administration: standards for fuel economy under EPCA as amended in 2007
Proposal was published September 28, 2009 Comments closed November 27, 2009 This rule was finalized April 1, 2010 Effective January 2011 for MY 2012
Joint Rulemaking
By 2016 the fleet average will be 35.5 miles per gallon, that is four years earlier than the CAFE law now requires.
Projected reduction in oil consumption of approximately 1.8 billion barrels over the life of the program.
Projected total reduction in GHG emissions of approximately 900 million metric tons.
Incentives for manufacturers to produce flex-fuel vehicles and dedicated alt fuel vehicles.
Renewable Fuels Standard
Energy Independence and Security Act (2005, 2007)
Renewable Fuel Standard 2 in effect July 1, 2010 Biomass-based diesel 1B gal by 2012 Cellulosic biofuel 16B gal by 2022 Advanced biofuel 21B gal by 2022 Renewable biofuel 36B gal by 2022All with % lifecycle GHG thresholds
Geosequestration (GS) Rule July 25, 2008 Proposed rule for Class VI GS wells - extended
comment period closed 12/24/08 and thousands of comments were received
August 31, 2009 Notice of Data Availability (NODA) - comment period ended 10/15/09
Provided an update on ongoing projects and research Requested comments on the use of an injection depth waiver
allowing injection into non-USDW located above the lowermost USDW
Requested an update on current state GS regulation activities April 15, 2010 Projected Final Agency Review (FAR) OMB may request congruent timing and review of Class VI GS
rule and greenhouse gas (GHG) mandatory reporting rule (MRR) to ensure there are no redundant burdens
Executive Order 13514 Affects all federal agencies – “lead by example”
Reduce GHG emissions by Energy conservation Fleet management efficiencies (reduce petroleum use by at least
2% per year through 2020) Renewable energy Inventorying and reporting GHG emissions
Sets new performance requirements Extends water conservation requirements (26% reduction by 2020) Extends high-performance building requirements (by 2020, ensure
that all new federal buildings are designed to achieve zero-net-energy by 2030)
Sets stormwater management guidelines Sets solid waste reduction targets (by 2015, divert at least 50% of
non-hazardous waste)
What more may happen from a regulatory perspective in 2010?
Possible Graham-Kerry-Lieberman legislation Power plants would face an overall cap on emissions
that would become more stringent over time motor fuel may be subject to a carbon tax whose
proceeds could help electrify the U.S. transportation sector
industrial facilities would be exempted from a cap on emissions for several years before it is phased in.
the legislation would also expand domestic oil and gas drilling offshore and would provide federal assistance for constructing nuclear power plants and carbon sequestration and storage projects at coal-fired utilities.
– “Climate Progress” February 27, 2010
Other related bills
Cantwell-Collins Carbon Limits and Energy for America’s Renewal (CLEAR) Act
Alexander-Webb bill to encourage nuclear power
Alexander-Carper bill to reduce Hg, SO2, NOx from power plants
Some EPA Voluntary Partnerships
Greening the 2010 Cowtown Marathon Fort Worth Texas
Cost per ton of CO2 reduced to replace a coal-fired unit with various technologies
-20
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Gas
Nuclear
Wind
Solar
E-E
Generation cost data (except nuclear) from EPRI (“Generation Technologies in a Carbon-constrained World,” 2005, assuming gas at $6MMbtu)
“Potential for Energy Efficiency, Demand Response, and Onsite Renewable Energy to Meet Texas's Growing Electricity Needs,” ACEEE, March 2007
Energy Efficiency’s Potential for Texas
