EMISSIONS SOLUTIONS GUIDE
May 2007
U.S. Supreme Court Rules EPA Must Regulate CO2 Emissions
On April 2, in a case brought by numerous states, local governments and environmental organizations, the United States Supreme Court ruled that greenhouses gases (GHGs) such as Carbon Dioxide (CO2) fall within the Clean Air Act’s definitions of “air pollutant” and that the EPA has the authority – and the responsibility to regulate them. The court called CO2 “the most important species of a greenhouse gas.”
EPA (backed by 20 states and various trade associations) argued the Clean Air Act (CAA) did not give EPA the power to regulate CO2 – and that no link between green house gases and climate warming has been unequivocally established.
In the 5-4 split decision, the Supreme Court found that GHGs fit within the Clean Air Act’s capacious (large in capacity) definition of an air pollutant. The court found that the EPA’s decision not to regulate GHG’s was “not in accordance with law.” EPA must now reconsider its decision and its grounds for inaction.
EPA Proposes Eliminating the “Once In, Always In” Hazardous Air Pollutant MACT Policy
In January 2007 the Environmental Protection Agency (EPA) published a proposed rule in the federal register that would replace a 1995 EPA policy titled “Potential to Emit for MACT” (maximum achievable control technology). The 1995 policy provides that a major source polluter of one of EPA’s National Emission Standards for Hazardous Air Pollutants (NESHAPs or HAPs) may become a less severely regulated area source only by limiting its potential to emit (PTE) its designated HAP emissions to below major source levels prior to the source’s first compliance date.
Thus, under the 1995 policy, a source that limits its PTE and attains area source designation by its first compliance date of MACT is not subject to major source requirements. By contrast, a source that does not have a PTE limit in place by the first compliance date becomes subject to major source MACT regulation regardless of any subsequent HAP emissions. This 1995 policy is generally referred to as EPA’s “once in, always in” policy for MACT standards.
The amendments proposed by EPA, if finalized, are important and significant. They would replace the 1995 policy and allow a major source of HAP emissions to become an area source at any time by limiting its PTE for its hazardous air pollutant to below the major source thresholds.
EPA, and industry proponents of the proposed rule, say “Once In, Always In” MACT serves as a disincentive for sources to reduce emissions of HAP beyond the levels required by an applicable MACT standard because there are no benefits to be gained, e.g., no reduced monitoring, recordkeeping, and reporting – and no chance to get out of major source requirements.
The proposal's opponents argue that eliminating the policy will provide incentive to sources that presently emit at levels below their major source threshold for MACT compliance. Opponents say these sources will have an incentive to increase their emissions until they fall just slightly below the current HAPs MACT thresholds.
Texas Announces New Emissions Reduction Grant Funding
The Texas Commission on Environmental Quality (TCEQ) has approximately $60 million in Emissions Reductions Incentive Grant (ERIG) funding available. ERIG is part of TCEQ’s Texas Emissions Reduction Program (TERP). The ERIG grants provide incentives to eligible local governments, businesses and individuals to reduce emissions from polluting vehicles and equipment.
The application period for the ERIG program runs from April 2-June 1. The eligible area includes Tyler-Longview, Austin and San Antonio in addition to the Dallas-Fort Worth, Houston-Galveston-Brazoria, and Beaumont-Port Arthur areas of the state.
Workshops are planned to provide application assistance and information about grant contract requirements including equipment usage, disposition of equipment, record keeping and on-going reporting. For a complete list of eligible counties, the latest workshop information, detailed program information, requirements and copies of application forms call 800-919-TERP (8377) or visit the TERP grants Web site.
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