{"id":164,"date":"2010-07-16T10:16:29","date_gmt":"2010-07-16T15:16:29","guid":{"rendered":"http:\/\/blogs.law.columbia.edu\/climatechange\/?p=164"},"modified":"2012-01-31T15:47:04","modified_gmt":"2012-01-31T20:47:04","slug":"the-preemptive-effects-of-the-revised-american-power-act","status":"publish","type":"post","link":"https:\/\/blogs.law.columbia.edu\/climatechange\/2010\/07\/16\/the-preemptive-effects-of-the-revised-american-power-act\/","title":{"rendered":"The preemptive effects of the revised American Power Act"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div><p><em>by Hannah Chang<\/em><\/p>\n<p>A revised draft of the American Power Act (APA), a bill that was introduced by Senators Kerry and Lieberman in May 2010, <a href=\"https:\/\/www.nytimes.com\/cwire\/2010\/07\/14\/14climatewire-kerry-lieberman-push-their-own-utility-only-69652.html?adxnnl=1&amp;adxnnlx=1279224042-rEUszfsIUKgzI4Lb0HWXKg\">surfaced earlier this week<\/a>, on July 13.\u00a0 Although neither Senator Kerry nor Senator Lieberman have confirmed the validity of the circulating draft, it is thought that the <a href=\"https:\/\/www.eenews.net\/assets\/2010\/07\/14\/document_daily_03.pdf\">667-page discussion draft<\/a>, which would establish a cap on greenhouse gases (GHGs) for utilities only, will be considered as part of a larger package to be introduced by Senate Majority Leader Reid that will include provisions on oil spill response and renewable energy.<\/p>\n<p>CCCL <a href=\"https:\/\/www.law.columbia.edu\/null\/download?&amp;exclusive=filemgr.download&amp;file_id=156054\">previously analyzed<\/a> the preemptive effects of the <a href=\"https:\/\/kerry.senate.gov\/imo\/media\/doc\/APAbill3.pdf\">original APA<\/a> on the Environmental Protection Agency\u2019s (EPA\u2019s) authority under the Clean Air Act and on state authority to regulate GHGs.\u00a0 Since that last writing, the stakes have only risen in the controversy over possible preemption of EPA authority.\u00a0 Senator Lisa Murkowski\u2019s proposed resolution of disapproval that would have overturned EPA\u2019s endangerment finding and effectively blocked EPA regulation of GHGs was rejected by a 53-47 vote in the Senate on June 10, 2010.\u00a0 On July 6, 2010, EPA released its proposed <a href=\"https:\/\/www.nytimes.com\/gwire\/2010\/07\/07\/07greenwire-epa-unveils-rules-on-smog-forming-emissions-fr-27348.html\">Transport Rule<\/a>, which would establish stringent limitations on nitrous oxide and sulfur dioxide emissions from power plants.\u00a0 Utilities are <a href=\"https:\/\/www.tnr.com\/blog\/the-vine\/76296\/energy-bill-could-be-disaster-if-utilities-get-their-way\">reportedly demanding relief<\/a> from these proposed regulations, and from other regulation of conventional pollutants, as a concession for supporting a climate bill that would establish a utilities-only cap on GHGs.<\/p>\n<p>If the revised, utilities-only APA discussion draft is to be considered by the Senate, it is worth understanding the proposal\u2019s effect on EPA and state authority.\u00a0 The following summarizes preemption under the revised draft and how it compares with preemption under the original APA.\u00a0 Generally, most of the preemptive language in the two versions is substantially similar \u2013 that is to say, the revised APA significantly weakens EPA authority, much like the original APA.\u00a0 The revised APA may have even more far-reaching preemptive effects, however, as a result of the placement of brackets around certain sections that indicate reconsideration and possible future omission of these sections.<\/p>\n<p>Title II, Subtitle D (\u00a7\u00a7 2301-07) of the revised APA (beginning on page 428), entitled \u201cEnsuring Regulatory Predictability for Greenhouse Gases,\u201d is the principal section addressing preemption of existing Clean Air Act authority.\u00a0 These sections mirror the same Title II, Subtitle D (\u00a7\u00a7 2301-07) of the original APA (beginning on page 619 of that version).\u00a0 Like the original APA, the revised APA would:<\/p>\n<ul>\n<li>bar      EPA from establishing any GHG as a <span style=\"text-decoration: underline\">criteria pollutant<\/span> on the basis      of the pollutant\u2019s effect on climate change or ocean acidification (\u00a7      2301),<\/li>\n<li>bar      EPA from designating any GHG as a <span style=\"text-decoration: underline\">hazardous air pollutant<\/span> on the      basis of the pollutant\u2019s effect on climate change or ocean acidification      (\u00a7 2303),<\/li>\n<li>bar      EPA from applying \u00a7 115 of the Clean Air Act regarding <span style=\"text-decoration: underline\">international      air pollution<\/span> to any air pollutant with respect to that pollutant\u2019s      contribution to climate change or ocean acidification (\u00a7 2304),<\/li>\n<li>prohibit      any state, locality, or Indian tribe<a href=\"#_ftn1\">[1]<\/a> from implementing a cap-and-trade program effective January 1 of the first      year the EPA allocates allowances pursuant to the APA cap-and-trade      program (\u00a7 2305, referencing the newly-added \u00a7 805(c) of the Clean Air Act)<a href=\"#_ftn2\">[2]<\/a>,\n<ul>\n<li>(Like       the original APA, the revised APA only preempts state cap-and-trade       programs and does not preempt other state regulation of GHGs.\u00a0 Moreover, like the original APA,       the revised APA would allow exchange of allowances issued by California,       the Regional Greenhouse Gas Initiative, and the Western Climate       Initiative for federal allowances (Revised APA \u00a7 2101 adding \u00a7 786 to the       Clean Air Act, p. 321).\u00a0 And       like the original APA, the revised APA would recognize the early action of       these cap-and-trade programs by awarding a certain number of allowances       (Revised APA \u00a7 2101 adding \u00a7 788 to the Clean Air Act, p. 324).)<\/li>\n<\/ul>\n<\/li>\n<li>bar      EPA from applying the Clean Air Act\u2019s <span style=\"text-decoration: underline\">Title V<\/span> operating permit      program to stationary sources that are being regulated under the Clean Air      Act solely because of GHG emissions (\u00a7 2307).<\/li>\n<\/ul>\n<p>One difference between the original and revised APA lies in the preemption of New Source Review provisions (\u00a7 2306).\u00a0 The original APA amended the definition of \u201cmajor emitting facility\u201d under the Clean Air Act\u2019s Prevention of Significant Deterioration (PSD) program to exempt from this definition \u201cany facility\u201d initially permitted or modified after January 1, 2009 that would be regulated because of its GHG emissions (Original APA, p. 623).\u00a0 Rather than amend the definition of \u201cmajor emitting facility,\u201d the revised APA, by contrast, adds a new section that exempts from PSD regulation \u201ca major emitting facility that is a covered entity\u201d under the APA and that is initially permitted or modified after January 1, 2009 and would be regulated on the basis of its GHG emissions (Revised APA, p. 433).\u00a0 Both the original and revised APA would have the same effect of exempting new sources and sources modified after January 1, 2009 from PSD regulation for their GHG emissions.\u00a0 The language of the revised APA has a more narrow preemptive effect, however, as it exempts only major emitting facilities that are covered by the cap, rather than redefining \u201cmajor emitting facilities\u201d to exclude <em>any<\/em> new source that would be regulated on the basis of GHG emissions.<\/p>\n<p>A more significant difference between the two versions is the insertion of brackets in one subsection of \u00a7 2302 relating to preemption of the Clean Air Act\u2019s \u00a7 111 new source performance standards. \u00a0Under \u00a7 2302, the revised APA, like the original APA, would:<\/p>\n<ul>\n<li>bar EPA      from establishing performance standards for <span style=\"text-decoration: underline\">capped<\/span> GHG emissions      from a capped source except for a reason unrelated to climate change or      ocean acidification, and<\/li>\n<li>bar EPA      from establishing new source performance standards before 2020 that would      apply to <span style=\"text-decoration: underline\">uncapped<\/span> GHG emissions from an eligible offset project.<\/li>\n<\/ul>\n<p>Significantly, however, the original APA included an exception that effectively excluded <em>existing capped coal-fired power plants<\/em> from the preemption of performance standards for capped sources (\u00a7 2302(2), amending Clean Air Act\u00a0 to add \u00a7 111(k)(2)(B)).\u00a0 In other words, the original APA carved out an exception from its prohibition against performance standards for capped sources on the basis of climate change or ocean acidification.\u00a0 The exception would effectively preserve EPA\u2019s authority to apply performance standards to capped, existing coal-fired power plants when those plants make modifications.<\/p>\n<p>The one-sentence exception is now bracketed in the revised APA (Revised APA, p. 430).\u00a0 If this exception is eliminated, as the revised APA appears to contemplate, EPA would be stripped of its authority to apply performance standards for GHGs to existing coal-fired power plants that are subject to the cap.<\/p>\n<p>Relatedly, the revised APA brackets the entire \u00a7 802 \u201cCoal-Fueled Fleet Transition Program\u201d that the original APA would have added to the Clean Air Act (Revised APA, p. 74).\u00a0 Section 802 would have established tax incentives to encourage replacements or retrofits of existing coal-fired power plants, and would have established a task force to consider avenues and incentives for encouraging early retirement of existing coal-fired power plants.\u00a0 Although the task force provision had previously drawn the ire of environmental and public health advocates who considered it a <a href=\"https:\/\/www.usclimatenetwork.org\/resource-database\/earthjustice-factsheet-section-802-of-the-american-power-act\">giveaway to industry<\/a> \u2013 a potential weakening of existing Clean Air Act regulations in exchange for retirement of old coal plants \u2013 the complete elimination of a program to encourage transition of the aging fleet of coal-fired power plants may be the ultimate giveaway to industry.<\/p>\n<p>In short, as much as the original APA tied EPA\u2019s hands in regulating GHGs on the basis of climate change and ocean acidification, the revised APA is poised to do even more harm to EPA\u2019s existing Clean Air Act authority.\u00a0 The potential excision of an entire section devoted to incentivizing retirement of existing coal-fired power plants does not bode well for a clean energy future.\u00a0 Moreover, the potential elimination of the proposed \u00a7 111(k)(2)(B) exception, which would prevent EPA from establishing performance standards for old coal plants, would remove one of the few remaining pieces of authority EPA does have to regulate GHGs under the Clean Air Act.<\/p>\n<hr size=\"1\" \/><a href=\"#_ftnref\">[1]<\/a> One minor change is that the revised APA prohibits Indian tribes, in addition to states and political subdivisions of states, from implementing cap-and-trade under this section.\u00a0 <em>See <\/em>Revised APA, p. 477.\u00a0 The original APA did not reference Indian tribes and only prohibited states and political subdivisions of states from implementing cap-and-trade programs.\u00a0 <em>See <\/em>Original APA, p. 667.<\/p>\n<p><a href=\"#_ftnref\">[2]<\/a> The revised APA references \u00a7 806(c) (see Revised APA, p. 432), as does the original APA (see Original APA, p. 622).\u00a0 But given revisions to the original version, the referenced \u00a7 806(c) (see Original APA, p. 667) is actually now \u00a7 805(c) (see Revised APA, p. 476).\u00a0 The revised APA\u2019s reference to \u00a7 806 rather than \u00a7 805 is therefore likely a typo.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>by Hannah Chang A revised draft of the American Power Act (APA), a bill that was introduced by Senators Kerry and Lieberman in May 2010, surfaced earlier this week, on July 13.\u00a0 Although neither Senator Kerry nor Senator Lieberman have confirmed the validity of the circulating draft, it is thought that the 667-page discussion draft, [&hellip;]<\/p>\n","protected":false},"author":330,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5680,642],"tags":[9424,9432],"class_list":{"0":"post-164","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-clean-energy","7":"category-congress","8":"tag-congress","9":"tag-energy","10":"czr-hentry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The preemptive effects of the revised American Power Act - Climate Law Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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