Senate Hearing On "The Future of Natural Gas"

Jul 19: The Senate Energy & Natural Resources Committee, Chaired by Senator Jeff Bingaman (D-NM), with Ranking Member Lisa Murkowski (R-AK) held a hearing entitled, "The Future of Natural Gas." Witnesses included: Dr. Howard Gruenspecht, Acting Administrator, Energy Information Administration (EIA); Dr. Ernest Moniz, Co-Director, MIT Coal Study, Massachusetts Institute of Technology; and George J. Biltz, Vice President, Energy and Climate Change, The Dow Chemical Company. Among other things the hearing explored a new MIT study on U.S. natural gas supplies.

 

    In an opening statement, Chairman Bingaman outlined five major factors that have combined to raise the prominence of natural gas as a resource.

(1) First, the new application of technologies such as horizontal drilling and hydraulic fracturing has led to an increase in domestic natural gas production and a reassessment of the size of the U.S. technically recoverable resource base.

(2) Second, the international focus on reducing greenhouse gas emissions to address climate change has favored the lower carbon intensity of natural gas for power generation. 

(3) The third factor is the recent tragedy in Japan at the Fukushima nuclear plant has led both Japanese and German officials to speak strongly about fuel switching to natural gas to replace, or at least supplement, their remaining nuclear fleet.

(4) The fourth factor is concerns about our dependence on foreign oil, which have led some to propose switching our cars and trucks from imported gasoline and diesel fuel to domestic natural gas. 

(5) Fifth, proponents of domestic manufacturing have argued that a larger, more stable gas supply at competitive prices will lead to a resurgence of investment in manufacturing and job creation, which is very much desired.

    Bingaman said, "So, in the past several years, there has been an increase in the estimates of natural gas resources available at relatively low prices, leading many experts to suggest that we may now be entering 'a golden age of gas.' I'll leave those specific projections to our witnesses. But, I believe there is agreement that there is a greatly expanded unconventional gas resource available domestically, with potentially 100 years or more gas available if current rates of usage are maintained. This change in the resource base has already had significant impacts on investment decisions in the power sector, in manufacturing and in transportation, and many expect it to continue doing so far into the future. There are many reasons to be optimistic about the natural gas resource that recently have been discussed, but recent history suggests we should be cautious as well. . . 

 

    "The promise of expanded domestic gas resources comes with the responsibility to address environmental concerns about their exploration and production. Recently, the public has expressed concerns that relate to the wastewater management of flowback fluids from natural gas wells, as well as potential for groundwater contamination. The issue of induced seismicity from oil and gas extraction-related activities has been raised. And the National Academy of Sciences study is now being undertaken both at Secretary Chu's and my request. I expect that the environmental concerns related to developing unconventional gas resources can be managed, but only if they are addressed through a transparent and diligent and safe approach to wellsite management throughout each stage of the gas extraction process. . ."

 

    Senator Murkowski said in an opening statement, ". . .Natural gas is clean-burning and abundant; it's well understood and scalable; and it's clearly in our best interest to ensure that we maintain a stable and affordable supply going forward. One of the easiest observations to make is that we're now in the midst of a truly exciting time for the natural gas industry. Just in the past several years, we've witnessed game-changing technological innovations that have unlocked tremendous volumes of previously inaccessible natural gas. . . If this was 2005, our opening statements would probably have expressed at least some concern about our ability to ensure that supply kept pace with demand.  Prices were trending higher, and many forecasts suggested that we'd become increasingly dependent on foreign LNG. . .

 

    "Natural gas was once thought of as "too precious to burn" but that's changed, and for the better.  When I look at the deeply troubling situation in North Africa and the Middle East, I don't see a future where we can afford to play politics with energy at the national level.  The rest of the world has already figured that out, and I'm hopeful we're beginning to see this reality, as well. I'd like to add that developing all of our resources in a responsible way is of paramount importance, and natural gas is no exception. We cannot realize the many benefits of our tremendous natural gas resource unless we commit to safe, environmentally acceptable production and delivery, within a framework of appropriate regulation and access. Contrary to some reports, the industry actually has a very exemplary record in this regard.  I welcome its efforts to proactively seek ways to increase transparency and improve the efficiency of the extraction process. . ."

 

    EIA testified that after a decade of stagnation, U. S. natural gas production increased by almost 17 percent between 2006 and 2010, reaching 21.6 trillion cubic feet (Tcf) in 2010, the highest level since 1973. Production has continued to increase despite a significant and sustained decline in natural gas prices since mid-2008. The growth in U.S. supplies over the past few years is largely the result of increases in production from shale gas formations. Shale gas production grew from less than 3 billion cubic feet per day (bcf/d), representing 5 percent of overall production in 2006, to 13 bcf/d, accounting for 23 percent of overall production in 2010.

 

    Natural gas provides about 25 percent of the primary energy used in the United States, heating about half of U.S. homes, generating almost one-fourth of U.S. electricity, and providing an important fuel and feedstock for industry. About 31 percent of the natural gas consumed in 2010 was used for electric power generation, 33 percent for industrial purposes, and 34 percent in residential and commercial buildings. Only a small portion is used in the transportation sector, predominately at pipeline compressor stations, although some is used for vehicles. EIA's Annual Energy Outlook 2011 uses a total resource estimate for U.S. natural gas (onshore and offshore, including Alaska) of 2,543 Tcf, including 862 Tcf of shale gas, (35 Tcf of proved reserves plus 827 Tcf of technically recoverable unproved resources.)

   

    On the MIT Future of Natural Gas study, which is the fourth in a series that presents the results of an integrated technically-grounded analysis, MIT testified, "we find that, given the large amounts of natural gas available in the U.S. at moderate cost (enabled to a large degree by the shale gas resource), natural gas can indeed play an important role over the next couple of decades (together with demand management) in economically advancing a clean energy system. However, with increasingly stringent carbon dioxide emissions reductions, natural gas would eventually become too carbon intensive, which highlights the importance of a robust innovation program for zero-carbon options. We all recognize that today there is controversy about natural gas and its availability and affordability and about environmental impacts from its production and distribution."

 

    The MIT study concludes in part that, "In a carbon-constrained economy, the relative importance of natural gas is likely to increase even further, as it is one of the most cost-effective means by which to maintain energy supplies while reducing CO2 emissions. This is particularly true in the electric power sector, where, in the U.S., natural gas sets the cost benchmark against which other clean power sources must compete to remove the marginal ton of CO2. In the U.S., a combination of demand reduction and displacement of coal-fired power by gas-fired generation is the lowest cost way to reduce CO2 emissions by up to 50%. For more stringent CO2 emissions reductions, further de-carbonization of the energy sector will be required; but natural gas provides a cost-effective bridge to such a low-carbon future."

 

    Dow Chemical Company submitted 42-pages of testimony including an American Chemical Council (ACC) study on shale gas, describing the company's "views on natural gas supply and demand, and the value-add created by U.S. manufacturers who use natural gas. Dow believes that natural gas will play a critical role in US energy policy. Because US manufacturing jobs are dependent on the US natural gas market, policies that impact natural gas will have a direct impact on jobs in the US manufacturing sector. We recommend that any natural gas policies carefully consider the need to preserve and enhance the competitiveness of U.S. manufacturers."

 

    Dow indicated that, "US manufacturers provide the highest value-add of any sector. Using natural gas to make petrochemicals results in eight times the value over simply combusting it. This productivity stems from the fact that the chemical industry uses natural gas not just for fuel and power, but also as a raw material or 'feedstock.' When natural gas prices are low relative to oil, US chemical manufacturers have a competitive advantage."

 

    Dow said it is in "general agreement" with the MIT report, but said it "has concerns, however, with two of the report's recommendations. While the study does not openly call for government subsidies for natural gas vehicles, it does call for the government to revise its policies related to CNG vehicles in order to lower up-front costs of such vehicles and the necessary infrastructure. The study also does not recognize another fact: Electric vehicles are three times more efficient than natural gas vehicles. In addition, the infrastructure for an overnight, low-voltage charging infrastructure already exists -- our power grid -- and it is cheaper to scale up.

 

    "The second disagreement relates to the development of an efficient and integrated global gas market. It [the report] states, 'Greater international market liquidity would be beneficial to U.S. interests. U.S. prices for natural gas would be lower than under current regional markets, leading to more gas use in the U.S." It is hard to understand how this can be. The U.S. has very competitive natural gas prices and exposing it to the rest of the world, where prices are linked to oil price, will not lower domestic prices. In our view, a global market will raise US prices which will be bad for competitiveness of all US energy intensive industries including chemicals. If the US were to begin exporting natural gas, the world market would equilibrate to one world price (with transportation cost differences) which would bring lower prices outside the US and higher prices for US consumers. . ."

 

    Access Sen. Bingaman's opening statement (click here). Access Sen. Murkowski's opening statement (click here). Access the hearing website for links to testimony and a webcast (click here). Access a link to the complete and extensive MIT report (click here). [*Energy/NatGas]

Final LRRP Rule Says Lead-Dust Clearance Testing Unnecessary

Jul 15: As part of a settlement of litigation over certain post-renovation cleaning requirements of the 2008 Lead Renovation, Repair, and Painting Program (LRRP) rule, U.S. EPA agreed to propose a number of revisions to the 2008 LRRP rule that established accreditation, training, certification, and recordkeeping requirements as well as work practice standards for persons performing renovations for compensation in most pre-1978 housing and child-occupied facilities and to subsequently take final action on the proposed rule by July 15, 2011. The action is EPA's final action on all aspects of the May 6, 2010 proposal and will become effective 60-days after publication in the Federal Register which is currently expected to occur in the week of July 24, 2011. EPA said, "The Agency is not imposing additional "clearance" requirements because existing LRRP work practices and cleaning protocols effectively reduce lead hazards."

 

    EPA indicated it has decided not to promulgate dust wipe testing and clearance requirements as proposed. However, EPA is promulgating several other revisions to the LRRP rule, including a provision allowing a certified renovator to collect a paint chip sample and send it to a recognized laboratory for analysis in lieu of using a lead test kit, minor changes to the training program accreditation application process, standards for e-learning in accredited training programs, minimum enforcement provisions for authorized state and tribal renovation programs, and minor revisions to the training and certification requirements for renovators. EPA is also promulgating clarifications to the requirements for vertical containment on exterior renovation projects, the prohibited or restricted work practice provisions, and the requirements for high-efficiency particulate air (HEPA) vacuums.

 

    In further explanation EPA said, "After carefully weighing the issues at stake and considering the concerns raised by commenters, and as explained in greater detail below, EPA has concluded that, on balance, the information before the Agency does not support imposing a dust wipe testing or clearance requirement on renovations. In particular, EPA is convinced that the work practices established in the 2008 LRRP rule are reliable, effective, and safe, and that imposing a dust wipe testing or clearance requirement is unwarranted."

 

    Senator James Inhofe (R-OK), Ranking Member of the Senate Committee on Environment and Public Works (EPW) issued a release welcoming the announcement which he said recognizes "that current lead-safe work practices and clean up requirements will protect people from lead dust hazards and it is not necessary to impose lead-dust clearance testing requirements in the Lead Renovation, Repair and Painting Rule (LRRP)." He said the decision addresses the concerns voiced in an April 15 letter to EPA Administrator Lisa Jackson in which Senator Inhofe, along with eleven other senators, expressed deep concerns about the Agency's proposed amendments to LRRP, which would have required "clearance testing" to prove the presence or absence of lead following a project's completion. He said, "These additional requirements would have created confusion and complications for renovators who have already completed their lead-based paint training and imposed significant additional costs."

 

    In the release Senator Inhofe indicated he supports the intent of the rule, which is to protect pregnant women and children from lead dust hazards, he has been a staunch critic of EPA's implementation. On April 22, 2010, LRRP went into effect even though EPA only had 204 training providers nationwide. This meant that contractors did not have enough access to the training programs required to achieve compliance with the rule. In response, Senator Inhofe and Senator Collins (R-ME) introduced an amendment to the supplemental appropriations bill, which blocks funds from being used to "levy against any person any fine, or to hold any person liable for construction or renovation work performed by the person."  He said the amendment, which passed by a vote of 60 to 37, sent a clear bipartisan message to EPA that it must alleviate the widespread confusion over the rule's implementation. By May 2010, EPA announced a memorandum extending the LRRP deadline for renovators to enroll in training classes to September 30, 2010; it also extended the deadline for contractors to complete training to December 31, 2010. Most importantly, the Agency agreed to work to provide additional trainers in areas of need.

 

    Senator Inhofe said, "I am pleased that common-sense has once again prevailed at the EPA regarding the lead-based paint rule. The intent of the rule, public health protection especially for children and pregnant women, is something everyone supports, but it needs to happen in a way that does not place costly or confusing burdens on those trying to implement it. I applaud the Agency for responding to our concerns and making the right decision, which will provide maximum benefits for all. " 

 

    Senator Snowe (R-ME) said, "Today's ruling is a major victory for small business owners nationwide saddled with needlessly onerous regulations that are stifling their ability to grow and prosper during these difficult economic times. As we learned during its initial implementation back in 2009, this well-intentioned effort to protect pregnant women and children from lead exposure presented significant unintended consequences and undue burdens for renovators and homeowners alike. It is essential that agencies account for the impact new federal regulations will have on the economy, families and small businesses before rules are promulgated. I am pleased that, in this instance, EPA has withdrawn a proposed regulation deemed unnecessary and urge the agency to continue its stringent evaluations to mitigate the effects of rules that impose government costs and burdens where they are not necessary."

 

    Access the prepublication copy of the EPA final rule (click here). Access EPA's LRRP website for extensive background and documents (click here). Access a lengthy release from Senator Inhofe with links to related information (click here). [*Toxics]

House Approves Major Cuts & Changes In Energy & Water Programs

Jul 15: The U.S. House approved H.R. 2354, the fiscal year 2012 Energy, Water, and Related Agencies Appropriations bill by a vote of 219-196. The voting included 209 Republicans and 10 Democrats voting for the measure; and, 175 Democrats and 21 Republicans voting against. The legislation provides the annual funding for the various agencies and programs under the Department of Energy, including the National Nuclear Security Administration, as well as the Army Corps of Engineers, the Bureau of Reclamation, the Nuclear Regulatory Commission, and various regional water and power authorities.

    The legislation totals $30.6 billion -- a cut of $5.9 billion below the President's request and $1 billion below last year -- which brings the total cost of the bill to nearly the 2006 funding level. In addition, the bill provides over $1 billion dollars in emergency funding for the Corps of Engineers to address recent Mississippi River and Missouri River flood disasters. The funding will be used for flood fighting activities and restoration of flood prevention and navigation systems.

    House Appropriations Chairman Hal Rogers (R-KY) applauded the House for passing the bill saying, "This bill is proof that we can make common-sense spending reductions without damaging or impairing the programs that help keep our country safe and our citizens at work. While providing vital funding for programs that preserve our public safety, quality of life, economic competitiveness, energy independence and national defense, this bill abides by the promise that we would cut spending where we can to get our budgets back into balance and keep us on track toward economic recovery."

    Energy and Water Development Subcommittee Chairman Rodney Frelinghuysen (R-NJ) also welcomed the approval and said, "The House should be proud of this bill, which protects our national security and American competitiveness and innovation and sharpens oversight of the Department of Energy and the agencies under our jurisdiction. And recognizing the fiscal crisis facing our country, the bill restores funding to levels not seen since 2006, making it a model of restraint. I also commend the House Leadership for returning to regular order. This week's open and free-wheeling debate reflects well on this House."    

    Appropriations Committee Ranking Member Norm Dicks (D-WA) and Energy & Water Subcommittee Ranking Member (Pete Visclosky (R-IN) said in part, prior to final passage, "The Subcommittee's allocation is $30,600,000,000, a decrease of $5,901,082,000 from the Administration's budget request and $1,043,303,000 below the 2011 level. This allocation has necessitated severe cuts to crucial programs. While we truly appreciate the Chairman's considerable efforts and recognize that difficult choices must be made to address the nation's serious financial situation, this bill starkly illustrates the shortsighted nature of the spending cap set by the House budget. The allocation for Energy and Water is simply insufficient to meet the challenges posed by the economic downturn and to guarantee our national security. The cut-at-any-cost ideology has severely hindered our Committee's ability to produce bills that adhere to principles of good governance. This bill contains inadequate funding levels for energy efficiency initiatives, the Army Corps and environmental cleanup, to name a few. These decisions sacrifice long-term investment needs for short-term gain. . ."  

    Some of the major provisions related to energy matters included in the bill are: 

• Department of Energy (DOE) - The funding for DOE within the legislation totals $24.7 billion – $850 million below last year's level and $5.9 billion below the President's request.
• Nuclear Security – The bill provides a total of $10.6 billion for DOE's nuclear security programs, including Weapons Activities, Nuclear Nonproliferation, and Naval Reactors. Counting additional funds reallocated to this account from unused prior year funds, funding for nuclear security will increase by $147 million over last year.
• Yucca Mountain – The bill rejects the Administration's wasteful, partisan attempts to shutter the Yucca Mountain nuclear waste repository program and provides $35 million to support Yucca Mountain activities, including $10 million for the Nuclear Regulatory Commission to continue their review of the license application. The bill also includes provisions to forbid the use of funds to close down the program.
• Science Research – The bill includes $4.8 billion for science research, a slight reduction of $43 million below last year's level.
• Energy Programs – The bill provides funding to help create U.S. jobs and promote the nation's energy independence, including $1.3 billion – $491 million below last year's level – for programs to help lower the cost of renewable energy technologies and to develop new technology. The bill also includes $734 million for nuclear energy research, development, and demonstration activities to further the next generation of safe, secure, and economically beneficial nuclear power options while ensuring the safety and resiliency of our nuclear power plants. In addition, the legislation provides $477 million – $32 million above last year's level – for research and development to advanced coal, natural gas, and other fossil energy power generation technologies that produce more than 70% of the nation's current electricity. Finally, the bill includes $100 million to support the activities of the Advanced Research Projects Agency—Energy, and $160 million to support loan guarantees for innovative projects.
• Environmental Management – Included in the legislation is $5.6 billion for environmental management activities – a reduction of $101 million below last year. This includes $4.9 billion for Defense Environmental Cleanup to remediate safely sites contaminated by previous nuclear weapons production.

    Some of the amendments approved on the House Floor included:

• An amendment cuts $4.9 million from the Army Corps Operation and Maintenance for response to climate change at Corps projects, and transfers the funds to the Spending Reduction Account.
• An amendment cuts $6 million from Energy Efficiency and Renewable Energy, and transfers the funds to the Spending Reduction Account.
• An amendment cuts $200,000 from the Energy Efficiency and Renewable Energy, and transfers the funds to the Spending Reduction Account.
• An amendment provides $2.2 million for Fossil Energy Research and Development for State oil and gas commissions.
• An amendment cuts Departmental Administration by $21 million and Office of the Administrator by $20 million, and adds the funds to Non-Defense Environmental Cleanup.
• An amendment cuts $79.6 million from Departmental Administration, and adds the funds to the Advanced Research Projects Agency - Energy (ARPA-E).
• An amendment cuts $2.5 million from Departmental Administration, and transfers the funds to the Spending Reduction Account.
• An amendment cuts $35 million from Departmental Administration, and transfers the funds to Defense Nuclear Nonproliferation.
• An amendment cuts $10 million from Departmental Administration to increase funding for the Yucca Mountain license application.
• An amendment prohibits funds to implement rules, regulations, or an executive order that would require federal contractors to disclose political contributions.
• An amendment cuts $10 million from Departmental Administration, and adds the funding to Energy Efficiency and Renewable Energy.
• An amendment prohibits funding to pay the salaries of Energy Department employees to carry out the weatherization assistance increases created by the economic stimulus law.
• An amendment prohibits funding for the International Program within the Energy Efficiency and Renewable Energy account while preserving funding for U.S-Israel energy cooperation.
• An amendment prohibits the implementation or enforcement of higher efficiency light bulb standards. The amendment was adopted on a voice vote.
• An amendment prohibits funding for DoE International Programs in China. The amendment was adopted on a voice vote.

    Access a Republican release and summary of amendments (click here). Access the Democratic Ranking Member views (click here). Access links to bill summaries, releases and amendments (click here). Access the Democrats website on the bill (click here). Access legislative details for H.R.2354 (click here). Access the roll call vote (click here). [*Energy, *Water]

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House Approves "Clean Water Cooperative Federalism Act" (H.R.2018)

Jul 13: U.S. House of Representatives passed bipartisan legislation by a vote of  239 to 184, introduced by Representative John Mica (R-FL), Chairman of the House Transportation &  Infrastructure Committee and cosponsored by Representative Nick Rahall (D-WV), the Ranking Member on the Committee. Rep. Rahall was among only 16 Democrats that voted for the measure along with 223 Republicans. According to a release from Rep. Rahall, the bill -- H.R.2018, the Clean Water Cooperative Federalism Act -- is "aimed at reining in the Environmental Protection Agency's (EPA) overreach in the Clean Water Act permitting process that is threatening the future of coal mining jobs and communities throughout Appalachia." The Office of Management and Budget (OMB) issued a policy statement saying it "strongly opposes" the bill and will recommend that the President veto the bill if it is presented to him [See WIMS 7/13/11].

    Rep. Rahall said, "Under the guise of ensuring clean water, the EPA's regulatory pendulum has swung wildly to one side, knocking aside the long-standing cooperative relationships with the states and leaving affected coal miners teetering on the brink of unemployment. This bill would bring the federal water quality permitting process back to center and help to ensure a more stable, clear, and equitable national clean water program."

    Rahall indicated in the release that the bill would provide common sense protections for states' EPA-approved water quality standards and permitting authority under the Clean Water Act. Under practices by the current EPA, the permits for surface mines throughout the Appalachian States have been bottled up for months. The bill would help to speed up the permitting process and rein in EPA, which has imposed new criteria for permits that have stymied the process. The bill would place limits on EPA's ability to veto dredge and fill permits previously issued by the Army Corps of Engineers, as EPA did with the Spruce Mine permit in Logan County in January. 

    Rahall said, "Not only is the EPA reaching into the Clean Water Act authorities under the jurisdiction of the Army Corps of Engineers, it is also reaching into the States and attempting to control their water protection programs. Certainly, it would be preferable that agencies work with each other, with the States, and within the confines of their statutory authority so we did not have to craft this kind of legislation. But when they abuse their powers, the Congress has the Constitutional responsibility to serve as a check on them.  This is clearly such a time."

    According to a summary of the bill release by Rep. Rahall, the bill would:

• State Water Quality Standards: Restricts EPA's ability to issue a revised or new water quality standard for a pollutant whenever a state has adopted – and EPA has already approved – a standard, unless the state concurs.
• State Section 401 Water Quality Certification: Prohibits EPA from superseding a water quality certification (that a discharge will comply with applicable water quality requirements) granted by a state under CWA section 401.
• Approval of State NPDES Permit Program Authority: Prohibits EPA from withdrawing approval of a state water quality permitting program under CWA section 402 (National Pollutant Discharge Elimination System, or NPDES), or from limiting federal financial assistance for the state program, on the basis that EPA disagrees with the state regarding a (i) water quality standard that a state has adopted and EPA has approved, or (ii) the implementation of any federal guidance that directs a re-interpretation of the state's approved water quality standards.
• EPA Veto Authority over State NPDES Permitting Decisions: Prohibits EPA from objecting to a state's issuance of an NPDES permit on the basis of (i) EPA's differing interpretation of an approved state water quality standard, or (ii) the implementation of any federal guidance that directs a re-interpretation of the state's approved water quality standards.
• EPA Veto Authority over Corps Section 404 (Discharges of Dredged or Fill Material) Permitting Decisions: Restricts EPA's ability to veto a Corps 404 permitting decision unless the state concurs with the veto. In an unprecedented action, EPA recently revoked a section 404 permit it had previously approved, even though the permittee had not violated any permit conditions.
• State Permit Program for the Discharge of Dredged or Fill Material: Allows a state to assume and administer only parts of the 404 permit program; under current law, states are required to assume the entire program or none of it.
• Deadlines for Fish and Wildlife Service Comments on Proposed Section 404 Permits: The deadline for the Fish and Wildlife Service to submit comments to the Corps on a proposed section 404 permit is shortened from 90 days to 30 days – or 60 days if additional time is requested.
• Deadlines for EPA Comments on Proposed Section 404 Permits: The deadline for the EPA to submit comments to the Corps on a proposed section 404 permit shall be 30 days – or 60 days if additional time is requested. (This is consistent with an existing Memorandum of Understanding between the two agencies).

    House Minority Leader Nancy Pelosi (D-CA) issued a statement on the passage of the bill saying, "Americans have been clear that their top priority is creating jobs; this week in Congress, Republicans are ignoring job creation and instead rolling back clean water protections that ensure the safety of the water Americans drink and in which they swim and fish. Nearly 40 years ago, the bipartisan Clean Water Act revolutionized the safety of American water; it gave a measure a confidence to families that they can protect their children from toxins and pollutants. Now Republicans want to take our nation backwards. This week, Republicans are turning back the clock on progress for the environment and our clean energy future: in addition to today's misnamed 'Clean Water' legislation, they attempted to make light bulbs less energy efficient, at a cost to American consumers of nearly $12.5 billion per year, and voted repeatedly to slash investments in clean energy jobs. Republicans should abandon their ideological assault on the environment and get to work creating jobs and strengthening our economy."

 

    Sierra Club Executive Director Michael Brune issued a statement saying, "Today's unprecedented attack on clean water protections is an assault on Americans' health, environment and economy -- and further exposes a House of Representatives that no longer represents the interests or the values of the American people. . . The federal safety net that Congress created when it passed the Clean Water Act has stopped billions of pounds of pollution from entering our waters and doubled the number of waterways that meet clean water standards. . . Now is not the time to roll back essential clean water protections or prevent the Environmental Protection Agency from protecting Americans' drinking water."

 

    The National Association of Manufacturers (NAM) Senior Vice President for Policy and Government Relations Aric Newhouse issued a statement saying, "Manufacturers are pleased that the House of Representatives recognized the harmful impacts of the Environmental Protection Agency's (EPA) recent activity to revoke state Clean Water Act (CWA) discharge permits. If left unchecked, the EPA's actions would cost jobs and hinder infrastructure investment, creating uncertainty for manufacturers and discouraging economic growth. Manufacturers support the House's bipartisan efforts in addressing this important issue and ending the EPA's regulatory overreach on state CWA discharge permits. The EPA's interference in overturning water permits that were previously approved would cost up to $220 billion in annual economic activity directly tied to manufacturing. The bipartisan measure passed yesterday is a step in the right direction to protect thousands of jobs and manufacturing, construction and infrastructure projects, allowing for future investment and economic growth. Manufacturers urge the Senate to pass this legislation swiftly."

 

    Access a release from Rep. Rahall with a summary of the bill (click here). Access the statement from Rep. Pelosi (click here). Access the statement from Sierra Club (click here). Access the statement from NAM (click here). Access legislative details for H.R.2018 (click here). Access the roll call vote on the bill (click here). Access the OMB Policy Statement (click here). [*Water]

House Committee Approves Major FY12 Cuts & Riders For EPA, DOI

Jul 12: The full House Appropriations Committee approved the Fiscal Year 2012 Interior and Environment Appropriations bill. The legislation includes annual funding for the Department of the Interior, the Environment Protection Agency (EPA), the Forest Service, and various independent and related agencies. The Interior, Environment & Related Agencies Subcommittee approved the bill on July 7 [See WIMS 7/7/11]. The bill includes major cuts to U.S. EPA, the Department of Interior and other agencies, as well as a large number of special-interest riders. More riders were added to the final bill.

    In total, the bill includes $27.5 billion in spending -- a reduction of $2.1 billion below last year's level and $3.8 billion below the President's budget request. The legislation cuts climate change programs by a total of $83 million, or 22% from last year, and decreases land acquisition funding by $239 million, or 79%. In addition, the legislation also includes several provisions (i.e. riders) aimed at reining in, what Republicans are calling "out-of-control federal bureaucracies and overly burdensome regulations that harm American businesses and hinder economic recovery."

    House Appropriations Chairman Hal Rogers (R-TX) said. "This legislation is a great example of the hard but necessary work the Appropriations Committee is doing to get our fiscal house in order by cutting extraneous, duplicative and unnecessary spending. The cuts in this bill were not easy and they were not taken lightly, but they are responsible and necessary to move our country in the right direction. In addition, the bill reins in out-of-control regulation at the EPA -- the poster child for the Administration's widespread regulatory overreach that is hurting nearly every sector of our recovering economy." Interior Appropriations Subcommittee Chairman Mike Simpson (R-ID) said, "We are living at a time of record deficits and debt. If there's one thing we should have learned from the last Congress, it's that we can't spend our way to economic recovery. At the end of the day, what this Committee is attempting to do in this bill is reduce spending, create more certainty in the marketplace, and promote an economic environment conducive to job growth." 

    Appropriations Committee Ranking Democratic Member Representative Norm Dicks (D-WA) said, "It is my unfortunate duty to have to -- once again -- point out that the Republican leadership has proposed an exceedingly low subcommittee allocation. And there is no surprise that the resulting bill will devastate the environment and our ongoing efforts to preserve America's natural heritage. Two key examples of this potential damage are that the bill includes the lowest level of spending in the Land and Water Conservation Fund in more than 40 years and funding levels for EPA not seen in more than a decade. . . This bill would substantially diminish the capacity of EPA to carry out its responsibilities – which may actually be the goal of some of my colleagues on the other side. But the repercussions will be felt across the nation, including an ever-growing backlog of water treatment infrastructure projects and a decline in air and water quality. . . In addition to the clearly insufficient levels of funding across the board in this legislation, we were surprised that the Majority also included a wish list of special-interest riders to the bill that will handcuff the EPA and the Department of the Interior. These types of riders are largely ideological, have no impact on deficit reduction and most will be rejected by the Senate and the President. It seems that special-interest riders have become the new earmarks."

 

    Ranking Member of the Subcommittee Jim Moran (D-VA) said, "Mr. Chairman, the list of legislative riders and funding limitations in the bill is long: NEPA waivers, limitations on judicial review, the blocking of pollution controls and yes, even exposing that American icon, the Grand Canyon, and the millions of Americans who depend on the Colorado River for their drinking water, to the long and well known hazards of uranium mining. These riders have nothing to do with budget cuts or deficit reduction and everything to do about carrying out an ideological agenda. . ."

 

    Some of the additional riders that were added to the bill include:

• An amendment that prevents the EPA from being forced to implement a biological opinion related to pesticides and the Endangered Species Act. This will allow time for an independent scientific review on the issue to be completed.
• Language to direct the EPA to conduct a study on the economic impact of a rule requiring installation of catalytic converters on certain engines.
• Language requiring the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) to provide quarterly reports to Congress on the status of permits, as well as reasons permits were denied.
• An amendment to prohibit funding for the EPA to implement regulations on Portland cement.
• An amendment to prohibit funding for the EPA to implement the "lead contractor" rule until the agency approves a commercially available lead paint test kit.
• An amendment to prohibit funding for the EPA to implement or enforce numeric Florida Water Quality Standards.
• An amendment to prohibit funding for the EPA to finalize a new greenhouse gas standard for automobiles after model year 2017.
• An amendment to prohibit funding for the EPA to develop additional financial assurance requirements for hard rock mining operations.
• An amendment to prohibit states from receiving EPA Great Lakes funding if they have adopted ballast water requirements that are more stringent than federal requirements.
• An amendment to prohibit funding for the EPA to implement a regulation to restrict information provided on pesticide labels.
• An amendment to prohibit funding for the EPA to implement regulations related to ammonia emissions such as those created by agricultural operations.
• An amendment inserts report language to direct the EPA to do a cumulative assessment of the impacts of EPA regulations, and prohibits funding for the "Utility MACT" and "Transport" rules.

    Access a Republican Committee release on the approval with a listing of all approved amendments (click here). Access the full text of the bill (click here). Access the Committee report for the bill (click here). Access a release from Rep. Dicks (click here). Access a release from Rep. Moran (click here); and another (click here). [*All]

 

GET THE REST OF TODAY'S NEWS

Sen. Hearing On Unregulated Drinking Water Contaminants Program

Jul 12: The Senate Environment and Pubic Works (EPW) Committee, Chaired by Senator Barbara Boxer (D-CA) , with Ranking Member James Inhofe (R-OK) held a hearing entitled, "Oversight Hearing on the Environmental Protection Agency's Implementation of the Safe Drinking Water Act's Unregulated Drinking Water Contaminants Program." Witnesses testifying at the hearing included the: Government Accountability Office; U.S. EPA; American Public Health Association; West Valley Water District; Joseph Cotruvo & Associates, LLC; George Washington University Cancer Institute; and Department of Public Health and Community Medicine Tufts University.

 

    Chairman Boxer indicated in an opening statement, "In order to ensure that enough is being done to protect our nation from emerging contaminants, I, along with Representatives Waxman and Markey, asked the Government Accountability Office (GAO) to investigate the unregulated contaminant program. This report is being released today. . . the GAO report shows the development of new standards for unregulated drinking water contaminants, such as perchlorate, were derailed in a process that failed to use the best available science and was driven by factors other than the protection of public health. Scientific information has shown that certain emerging contaminants in our drinking water, such as perchlorate and chromium-6, could be harmful to children and families across the nation. . . EPA needs to have a process that vigorously addresses these contaminants to help ensure the safety of the nation's drinking water. . ."

 

    Ranking Member Inhofe said, "At the cornerstone of the Safe Drinking Water Act is the idea that we should be controlling those substances that pose risks to public health. Unfortunately, the system that EPA uses to determine health risks, the Integrated Risk Information System (IRIS), has a decade's long issues in crafting risk assessments. The National Academy of Sciences (NAS) has recently pointed out that IRIS assessments have suffered from a lack of transparency, inconsistency, and problems with evaluating studies and the weight of evidence. . . As analytical techniques continue to improve, we are able to detect constituents at increasingly lower levels. This ever increasing ability to detect will allow the numbers of chemicals in our water to increase infinitely. However, it is important that we do not associate any detection with risk. In nearly every case, the extremely low levels we are detecting are well below the dosage that would affect public health. To be perfectly clear, exposure does not mean there is risk. . ."

 

    GAO submitted 26-pages of testimony and a 146-page report entitled, Safe Drinking Water Act: EPA Should Improve Implementation of Requirements on Whether to Regulate Additional Contaminants (GAO-11-254, May 27, 2011). GAO was asked to: (1) evaluate the extent to which EPA's implementation of the 1996 amendments has helped assure the public of safe drinking water; and, (2) review the process and scientific analyses used to develop the 2008 preliminary regulatory determination on perchlorate. GAO analyzed relevant statutory provisions and regulatory determination documents and interviewed EPA officials.

 

    GAO found that, "Systemic limitations in EPA's implementation of requirements for determining whether additional drinking water contaminants warrant regulation have impeded the agency's progress in assuring the public of safe drinking water. EPA's selection of contaminants for regulatory determination in 2003 and 2008 was driven by data availability -- not consideration of public health concern. EPA does not have criteria for identifying contaminants of greatest public health concern and based most of its final determinations to not regulate 20 contaminants on the rationale of little or no occurrence of the contaminants in public water systems. Moreover, EPA's testing program for unregulated contaminants--which can provide key data to inform regulatory determinations--has fallen short in both the number of contaminants tested and the utility of the data provided because of management decisions and program delays. . ."

 

    GAO's 17 recommendations include that the EPA Administrator require: (1) development of criteria to identify contaminants that pose the greatest health risk; (2) improvements in its unregulated contaminants testing program; and, (3) development of policies or guidance to interpret the broad statutory criteria. According to GAO, EPA agreed with 2 recommendations but took the position that developing guidance and taking the other recommended actions are not needed. GAO believes EPA needs to adopt all of the recommendations to better assure the public of safe drinking water.

 

    EPA testified that, "Strong science and the law are the foundation of our decision-making at EPA. Under the Safe Drinking Water Act (SDWA), EPA identifies priority contaminants that are known or anticipated to occur in public water systems and then evaluates whether new drinking water standards are warranted for these contaminants. . . GAO's report expresses concern that EPA's past decisions have been driven not by considering the greatest health concern but by considering available data. EPA agrees that we can improve our process to better focus on contaminants that may be of public health concern. The improved approach in the most recent CCL [Contaminant Candidate List] was a substantial step forward in achieving this by using a rigorous scientific process to better ensure that the contaminants on the list are the ones that should be of highest priority for public health protection. . .

 

    "In response to the GAO recommendations, EPA will also consult with an independent panel of scientists on the regulatory determinations, specifically on the evaluation of the contaminants against the first and second criteria defined by SDWA, the use of best available science to develop the determination, and whether the determination focuses on the greatest public health risk. We will post the regulatory determination process publicly and review the process every five years as we conduct the regulatory determination cycle. . ."

 

    Access the hearing website with links to all testimony, a webcast and Chairman Boxer's statement (click here). Access the statement from Sen. Inhofe (click here). Access the complete GAO report (click here). [*Drink]

House Subcommittee Approves TRAIN Act To Curb EPA Rules

Jul 8: The House Energy and Commerce Subcommittee on Energy and Power, Chaired by Rep. Ed Whitfield (R-KY), approved legislation which Republican members say will "hold the Obama administration accountable for the total cost of EPA's wave of biggest rules." H.R. 2401, the Transparency in Regulatory Analysis of Impacts on the Nation Act (TRAIN Act) [See WIMS 6/22/11], was approved by the subcommittee by voice vote. The "bipartisan" bill now moves to the full Energy and Commerce Committee for consideration. The full Energy and Commerce Committee will hold a markup today (July 11) beginning at 5:00 PM for opening statements only. It will reconvene on Tuesday, July 12, at 10:00 AM. The Committee will also be considering the Coal Residuals Reuse and Management Act of 2011 (Amendment in the nature of a substitute to H.R. 2273) [See WIMS 6/22/11].

 

    According to a Republican Committee release, the TRAIN Act would require a cumulative analysis of major new rules recently proposed or promulgated by U.S. EPA. The interagency analysis will provide a greater understanding of the global competitive and economic impacts of these rules. The Subcommittee approved the TRAIN Act for a second time; as an earlier version of the legislation passed the panel in May, also by voice vote. The bill's authors, Energy and Power Subcommittee Vice Chairman John Sullivan (R-OK) and Rep. Jim Matheson (D-UT), reintroduced the bill to place a ceiling on possible costs of the legislation and provide offsetting spending reductions, although it is expected that agencies will be able to complete the necessary economic analysis through existing resources by improving and better coordinating the studies they already conduct.
 
    Full Committee Chairman Fred Upton (R-MI) said, "I would like to applaud the efforts of Mr. Sullivan and Matheson on this bill. The ultimate goal of the TRAIN Act is to preserve jobs and American competitiveness by providing information necessary to harmonize these regulations. This legislation represents a worthwhile attempt to provide information that could help avoid substantial and unnecessary regulatory costs in the years ahead."
 
    Rep. Sullivan said, "The Obama Administration's lack of regard for the consequences of their energy and environmental policy is killing our economy and costing American jobs. It's absurd for taxpayer funded federal agencies to impose burdensome regulations on consumers and businesses without first determining how much it's going to cost and the potential consequences it could have on our overall economy. Our national unemployment rate rose to 9.2% over the past month -- this further illustrates the need for an honest accounting of how much EPA's regulations are costing our economy and American consumers, and that is exactly what the TRAIN Act will accomplish."

 

    The bill was approved over the objections of most Democrats. Full Committee Ranking Member Henry Waxman (D-CA) said in an opening statement, "This bill is called the TRAIN Act because energy lobbyists have been complaining that regulations to protect public health from power plant air pollution will cause a 'train wreck' for the reliability of the nation's electric system.

This is another one of the myths that have become so commonplace in this room, like the myth that climate change is a hoax. Analysts have found that EPA regulations won't cause a "train wreck" or even a fender bender. Just last month, the Bipartisan Policy Center released a new report [See WIMS 6/14/11] that finds impacts on the reliability of the electric system are manageable while delivering significant public health and environmental benefits. CEOs of leading electric utilities have said the same thing. H.R. 2401 is seriously flawed. I support the effort to have good information about the potential impacts of regulations. But I can't support proposals that are one-sided or that will waste taxpayer dollars with redundant or infeasible analyses. . ."

 

    Access a Republican release on the Subcommittee approval (click here). Access the Republican's hearing website for statements, amendments, background and webcast (click here). Access the Democrat's hearing website for statements, amendments, background and webcast (click here). [*All]

Senators Announce Bipartisan Agreement On Ethanol Reform

Jul 7: U.S. Senators Amy Klobuchar (D-MN), John Thune (R-SD), and Dianne Feinstein (D-CA) announced that a bipartisan agreement has been reached that allows for a transition to a more sustainable model of incentives for domestic renewable fuel production while reducing the nation's deficit by $1.3 billion. The agreement, based on Thune and Klobuchar's bipartisan Ethanol Reform and Deficit Reduction Act, would end the existing 45 cent per gallon Volumetric Ethanol Excise Tax Credit on July 31, 2011, instead of the current expiration date of December 31, 2011. The bipartisan agreement would dedicate two-thirds of the savings from existing money -- $1.3 billion -- to debt reduction and the remaining $668 million in savings to renewable fuel incentives, helping provide consumers with lower gas prices. The compromise can now be considered by the full Senate.

 

    Recent votes in the Senate on this issue have sought to end the current Volumetric Ethanol Excise Tax Credit while still continuing to fund blender pumps [See WIMS 6/17/11]. Sen. Klobuchar indicated that this agreement is consistent with those votes and would end the existing 45 cent per gallon Volumetric Ethanol Excise Tax Credit, provide funding for homegrown energy infrastructure and reduce the nation's deficit, based only on remaining 2011 funding.

    Sen. Klobuchar said, "This bipartisan agreement is a major step toward providing our businesses a clear path forward and keeping the biofuels industry competitive while reducing our debt by over a billion dollars this year. With this agreement we can not only continue to support homegrown energy, we can also demonstrate that members with different viewpoints can come together to find common ground to reduce the debt. It is a model for reducing government subsidies going forward."

    Sen. Thune said, "After productive discussions with industry stakeholders over the past several weeks, we have reached a bipartisan solution that reduces the federal deficit and modifies current biofuels policy without pulling the rug out from under American renewable energy producers. Domestic biofuels production in South Dakota and throughout the country continues to play an important role in reducing our nation's dependence on foreign oil and creating American jobs. I look forward to moving our bipartisan plan through both the Senate and the House of Representatives."

   

    Senator Dianne Feinstein (D-CA) issued a separate release and letter to the Senate leadership, signed by the three Senators, indicating the agreement would repeal the nearly $6-billion-a-year ethanol subsidy and end the tariff on foreign ethanol by the end of the month. Sen. Feinstein said, "This agreement is the best chance to repeal the ethanol subsidy, and it's the best chance to achieve real deficit reduction. Absent this agreement, taxpayers stand to lose $1.33 billion -- that was the bottom line for me. Every month that passes without repeal costs taxpayers $400 million. After years of fighting, there is simply no guarantee a full repeal would be signed into law. I believe this bipartisan agreement should be included in the deficit reduction package that will likely accompany a vote on raising the debt limit, and I hope the president will consider that approach."

    According to a release from Sen. Klobuchar the compromise has the support of the Minnesota Farm Bureau, the Minnesota's Farmer's Union, the American Coalition for Ethanol, Growth Energy, and the National Corn Growers Association.

 

    Brooke Coleman, Executive Director of the Advanced Ethanol Council (AEC) said, "We appreciate the willingness of Senators Klobuchar, Thune and Feinstein to put advanced biofuels at the forefront of ongoing negotiations about how to innovate and reduce the cost of U.S. ethanol policy. This agreement has enough of the right ingredients to move the conversation forward. At the same time, there is a fundamental problem with how the advanced biofuels piece is crafted that will need to be addressed to be meaningful to the industry. While we appreciate the ambition to lengthen the duration of the tax credits, the last minute switch from a yearly credit to a gallon-based, capped credit adds artificial and unnecessary layers of uncertainty and risk for the financing community. As the President said yesterday, it is critical to U.S. energy security and U.S. national security to get this right. We look forward to working with Congress and the Administration to fix these deficiencies before the proposal is enacted into law. We particularly appreciate Senators Klobuchar and Thune for their dogged commitment to reforming rather than terminating the federal commitment to renewable fuels, and their steadfast protection of tax incentives designed to create jobs and promote alternatives to foreign oil."

 

    Bob Dinneen, President and CEO of the Renewable Fuels Association (RFA) issued a statement saying, "This bipartisan effort to find common ground is the kind of sensible policy making American voters desperately want from their elected leaders. We greatly appreciate the leadership of Senators Klobuchar and Thune in doggedly pursuing a solution to this impasse. Walking away from investments made in America's ethanol industry cold turkey would jeopardize the future of biofuel production in America, including stifling the progress of advanced and cellulosic ethanol technologies.

    "A particularly important part of this agreement is the commitment to continue the evolution of the industry to new technologies and new feedstocks for cellulosic ethanol. We are pleased the agreement recognizes the importance of cellulosic ethanol by committing $305 million to this effort. However, we are concerned that capping cellulosic ethanol development sends the wrong signal and we will continue to work with the Congress and the Obama Administration to address this anomaly. . . as this process continues. This is not the perfect compromise, but it does demonstrate the willingness of American ethanol producers and advocates to do their part to address budget concerns while not sacrificing the progress and evolution of the industry. I would challenge other industries to step up to the plate in the same manner. The status quo of American energy and tax policy simply won't work."

    Craig Cox, Environmental Working Group (EWG) Senior VP for Agriculture and Natural Resources issued a statement saying, "Thanks to Senator Feinstein's leadership, we are witnessing a remarkable reversal of fortune for the ethanol and corn lobbies. This deal is a welcome sign that the iron grip these lobbies have had on biofuel policy is loosening. However, there's still a long way to go to get U.S. biofuels policy on the right track. We encourage lawmakers to make a clean break with corn ethanol, American taxpayers shouldn't be called upon to support this industry any longer." 

    Access a lengthy release from Sen. Klobuchar with further details on the agreement (click here). Access a release from Sen. Feinstein with the letter to Senate leaders on the agreement (click here). Access the statement from AEC (click here). Access the statement from RFA (click here). Access the statement from EWG(click here). [*Energy/Biofuels]

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Reactions To EPA's Cross-State Air Pollution Rule - Jul 8: In general Republican environmental leaders and industry reacted negatively, while Democratic leaders along with environmental and public health officials were supportive of U.S. EPA's finalized

Cross-State Air Pollution Rule (CSAPR, a.k.a. Transport Rule) announced yesterday (July 7). EPA said the rule "will slash hundreds of thousands of tons of smokestack emissions that travel long distances through the air leading to soot and smog, threatening the health of hundreds of millions of Americans living downwind." [See WIMS 7/7/11]. EPA said the rule will protect communities that are home to 240 million Americans from smog and soot pollution, preventing up to 34,000 premature deaths, 15,000 nonfatal heart attacks, 19,000 cases of acute bronchitis, 400,000 cases of aggravated asthma, and 1.8 million sick days a year beginning in 2014 -- achieving up to $280 billion in annual health benefits. The final rule will become effective 60-days following publication in the Federal Register and will apply to 27 states in the Eastern half the United States and affect 3,642 electric generating units at 1,081 facilities.

 

    House Energy and Commerce Committee Chairman Fred Upton (R-MI) issued a statement saying, "The goal for these rules should be reasonable regulation that protects public health and the environment while also preserving economic growth. Unfortunately, the unprecedented pace at which the administration is issuing major new rules that impose new costs and regulatory requirements on states, employers and consumers fails that basic test. By issuing multiple regulations for the energy and other sectors at such an accelerated rate, EPA has turned regulation from a manageable tool into an unpredictable moving target that makes it difficult for companies to invest and create jobs." Upton cited EPA's estimates that the projected annualized compliance costs are $1.4 billion in 2012 and $800 million in 2014."

 

    Senator James Inhofe (R-OK), Ranking Member of the Senate Committee on Environment and Public Works (EPW) issued a statement saying, "This rule along with 'Utility MACT' could force the retirement of 30 to 100 gigawatts of coal-fired power plants, raise the price of electricity by as much as 23 percent, and cause 1.4 million job losses by 2020. True environmental progress will not come from these costly, heavy-handed regulations that harm the very people EPA claims to protect; real progress on clean air is best achieved through common sense multi-pollutant legislation that streamlines the Clean Air Act's many redundant and overlapping mandates.  This is something that I have and will continue to support. 

    "The bottom line is that reducing emissions does not have to be this expensive -- the Obama EPA just wants it to be. On both sides of the aisle we support efforts to reduce real pollution, but we should be doing it in a way that protects workers from losing their jobs, families from skyrocketing electricity prices, and businesses from unachievable requirements. It is little consolation that Oklahoma is not included in today's final rule. By separate notice, EPA has proposed to include the state in the program in the near future. As Ranking Member of the EPW Committee I will be keeping a close eye on this process." 

 

    Senator Joe Manchin (D-WV) issued a statement saying, "The continued jobs-destroying overreach of the EPA is outrageous, and it's incomprehensible that in these difficult economic times, the Administration would be so callous as to arbitrarily impose onerous rules that they know will cost countless American jobs and raise the daily costs of life for so many struggling families. Once again, the EPA is taking aim at the coal industry, small businesses and the hardworking families who help power and build this nation. As I have said before, it's time the EPA realizes that it cannot regulate what has not been legislated. Our government was designed so that elected representatives are in charge of making important decisions, not bureaucrats. That principle is even more true today when the American people see the consequences of the EPA making rules that affect our whole country and could hurt our fragile economy." 

 

    Senator Barbara Boxer (D-CA), Chairman of the Environment and Public Works Committee (EPW) , released a statement saying, "EPA's action will result in cleaner air and prevent thousands of premature deaths each year. Reducing smog and toxic soot that travels across states is good news for the millions of Americans who are harmed by this dangerous air pollution. These are the types of safeguards that are so important for the health of our children and families. I will continue to fight any effort to weaken the Clean Air Act's public health protections."

 

    Senator Tom Carper (D-DE), Chairman of the EPW Subcommittee on Clean Air and Nuclear Safety released a statement saying, ". . .Delaware and other so-called 'tail pipe' states on the East Coast know all too well, our neighboring states' dirty air has adversely affected the health and well-being of Delawareans, just by virtue of our location. We need to change that and this cross-state air pollution rule is an important tool to help us in that effort. . . As Governor of Delaware, I learned that despite their best efforts, states cannot clean up their air alone. We're all in this together. . . "Since coming to the Senate, I have worked to find a legislative solution to this challenge. While those efforts haven't born fruit, the courts have demanded that the EPA regulate this pollution. In response to those demands, the EPA has developed a sensible approach that will reduce smog and particle pollution and in turn, give us cleaner air and prevent thousands of deaths and billions of dollars in healthcare costs. In the end, this rule will help us achieve better health care results for less money. . ."

    Major environmental organizations issued supporting statements for the proposed CSAPR. For example, Environmental Defense Fund (EDF) President Fred Krupp praised EPA's proposal saying, "These clean air standards for power plant pollution will provide some of the greatest human health protections in our nation's history. Millions of Americans live downwind from this deadly pollution -- from the communities that live in the shadows of these smokestacks to those afflicted by the pollution that drifts hundreds of miles downwind. Today's clean air protections will help eastern states restore healthy air in communities hard hit by air pollution, and will help all of us live longer and healthier lives." In addition, EPA issued a release summarizing supporting comments from a number of organizations and interests including: American Lung Association, Massachusetts Secretary of Energy and Environmental Affairs, The American Public Health Association, League of Conservation Voters, Sierra Club, and Penn Environment.

    There were few releases commenting on the CSAPR from major industry associations. The National Association of Manufacturers (NAM) indicated in a posting on its "Shopfloor" blog that, ". . .EPA continued their aggressive regulatory agenda  and announced the first of two rules affecting power plants that will significantly increase electricity prices for manufacturers and consumers. . . In addition, the EPA plans to finalize the Utility MACT rule in November, which would require coal-fired power plants to reduce mercury emissions. The combination of CSAPR, Utility MACT and other regulations impacting coal-fired utilities are already having a significant impact on the economy. . . Higher energy prices heighten uncertainty and prevent manufacturers from investing in the future and expanding their operations, inhibiting the job creating necessary to get our economy back on track. Manufacturers urge the EPA to end these unreasonable, overreaching regulations. . ."

    Access a release from Rep. Upton (click here). Access a release from Sen. Inhofe (click here). Access a release from Sen. Manchin (click here). Access a release from Sen. Boxer (click here). Access a release from Sen. Carper (click here). Access a release from EDF (click here). Access the summary of supporting comments from EPA (click here). Access the NAM blog posting (click here). Access a release from EPA on the CSAPR (click here). Access a CSAPR fact sheet (click here). Access a prepublication copy of the 1,323 final rule (click here). Access a 33-page presentation on the CSAPR (click here). Access the Regulatory Impact Analysis for the Final CSAPR (click here). Access more information on CSAPR (click here). [*Air]

House Proposes Major Cuts In FY12 Interior & Environment Funding

Jun 6: In the midst of intense and highly partisan debate over raising the U.S. debt ceiling, the House Appropriations Committee released the fiscal year 2012 Interior and Environment Appropriations bill which will be considered the subcommittee today (July 7). The legislation includes funding for the Department of the Interior, U.S. EPA, the Forest Service, and various independent and related agencies. In total, the bill includes $27.5 billion in spending -- a reduction of $2.1 billion below last year's level and $3.8 billion below the President's budget request. [Note: major cuts in these agency programs were recently passed as part of the FY11 budget in the Continuing Resolution. FY12 cuts will reduce this funding further].

 

    Overall, the funding level is $106 million below fiscal year 2009 spending levels. The legislation also includes a total cut to climate change programs of $83 million – or 22% – from last year, and decreases land acquisition funding by $239 million – or 79%.

    According to a Committee release, in addition, "the legislation unveiled today also includes several provisions aimed at reining in out-of-control federal bureaucracies and overly burdensome regulations that harm American businesses and hinder economic recovery." The proposal is particularly harsh on EPA funding which amounts to $1.5 billion of the total $2.1 billion in cuts over last year's level; and $1.8 billion of the total $3.8 billion that the President requested.

    The Committee said, "The EPA has been funded at unparalleled high levels over the past several years, leading to wasteful and unnecessary spending within the agency, as well as contributing to the agency's regulatory over-reach, which has a detrimental effect on American businesses and the recovering economy." EPA is funded at $7.1 billion in the proposed legislation, 18% below last year's level, 20% below the President's request. In total, the funding level is below FY 2006 level by $468 million. The bill also caps EPA's personnel at the 2010 level (the lowest since 1992), and rescinds certain unobligated grant and contract funding.

    According to a Committee summary, some of the EPA cuts include:

• $967 million cut in the Clean Water and Drinking Water State Revolving Fund. These funds received $6 billion in the "stimulus" legislation, and this cut brings these accounts to the fiscal year 2008 level
• $102 million cut in grants for state implementation of environmental programs
• $46 million cut in requested funding to regulate greenhouse gases
• $422 million cut in EPA operations/administration
• $76 million cut in EPA regulatory programs
• $49 million cut in the Great Lakes Restoration Initiative
• $4 million cut in the Chesapeake Bay Restoration Initiative
• $8 million cut in the Puget Sound Restoration Initiative

    House Appropriations Chairman Hal Rogers (R-KY) said, "Americans are sick to death of excessive government spending and regulation that is pushing us further and further away from economic recovery. This bill pinpoints and cuts extraneous, duplicative and unnecessary spending, prioritizes funding for programs with the most benefit to American families and businesses, and helps put a stop to free-wheeling government over-regulation." Subcommittee Chairman Mike Simpson (R-ID) said, "At a time when we borrow 40 cents for every dollar we spend, our government can't afford to continue on its recent spending binge with its head in the sand when it comes to our fiscal challenges. In this bill we face those challenges head on, setting priorities and distinguishing between what is necessary and what would just be nice to do -- something American families do every day. The bill reins in out-of-control regulation and provides the certainty that our economy needs to make a strong recovery." 

    The bill also includes funding at $9.9 billion for the Department of the Interior (DOI), which is $720 million (7%) below last year's level and $1.2 billion below the President's request. Within the DOI funding cuts from FY11 levels are: Bureau of Land Management (BLM), -$63 million; U.S. Fish and Wildlife Service (FWS), -$315 million; National Park Service (NPS), -$129  million; U.S. Geological Survey (USGS), -$30 million; Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE), -$72 million; and Bureau of Indian Affairs (BIA), -$64 million.

    Additionally, the proposal includes the following cuts over FY11: U.S. Forest Service, -$164 million; Indian Health Service, -$392 million; Smithsonian Institution, -$8; National Gallery of Art, - $33 million; and National Endowments for the Arts and Humanities, -$20 million for each endowment. 

    Finally, the legislation includes special provisions (i.e. special-interest riders), most directed at EPA including:

• A provision clarifying current permitting activities for the Outer Continental Shelf, and setting parameters for EPA approval of exploration permits. A similar legislative provision passed the full House in June
• A provision prohibiting the Office of Surface Mining from moving forward with proposed updates to the "stream buffer rule"
• A provision instituting a one-year prohibition on the regulation of greenhouse gas emissions from stationary sources
• A provision prohibiting the EPA from changing the definition of "navigable waterways" under the Clean Water Act
• A provision providing exemptions from greenhouse gas reporting for certain agricultural activities
• A provision prohibiting funds for defining coal ash as hazardous waste
• A provision prohibiting funds for the EPA from expanding storm water discharge requirements
• Includes the House-passed "Reducing Regulatory Burdens Act of 2011," approved by the House in March, which clarifies Congressional intent on the dual regulation of pesticides near navigable waterways

        House Appropriations Committee Ranking Democratic Member Representative Norm Dicks (D-WA) commented on the Republican proposal and said, "The Republican leadership proposed an exceedingly low subcommittee allocation that has now resulted in a bill that would be devastating for the environment and for the preservation of America's natural heritage, including the lowest level of spending in the Land and Water Conservation Fund in more than 40 years.

    "Overall, the allocation for this bill is 7 percent below the amount enacted in the current year -- an irresponsible level that will have a negative impact on our natural resource agencies and on the Environmental Protection Agency (EPA). After the EPA took a substantial cut of 16 percent in the current fiscal year, the Republican Majority is now proposing a further reduction in the agency's budget of 18 percent.  This bill would substantially diminish the capacity of EPA to carry out its responsibilities -- which may actually be the goal of some of my colleagues on the other side. But the repercussions will be felt across the nation, including an ever-growing backlog of water treatment infrastructure projects and a decline in air and water quality.

    "As was pointed out in a recent Washington Post article, the vast majority of the EPA's funds pass through to states and localities that are already squeezed by budget cuts. These infrastructure projects create jobs in communities all across the country and provide one of the most basic services taxpayers expect: clean water. The Bush Administration's EPA Administrator estimated that there was a $688 billion nationwide backlog of clean water infrastructure projects, and that total is even larger today. That backlog will not disappear if we just ignore it but, as we have seen in so many cases this year, the Republican leadership has decided to push this problem farther down the road.

    "In addition to the clearly insufficient levels of funding across the board in this legislation, we were surprised that the Majority also included a wish list of special-interest riders to the bill that will handcuff the EPA and the Department of the Interior. One of these riders is language that would effectively block any funding for new listing activities under the Endangered Species Act. These types of riders are largely ideological, have no impact on deficit reduction and most will be rejected by the Senate and the President."

 

    Access the Republican release and summary of the legislation and links to the full text and summary tables (click here). Access the Democratic release and summary of the legislation (click here). [*All]