{"id":681,"date":"2011-03-18T08:52:28","date_gmt":"2011-03-18T13:52:28","guid":{"rendered":"http:\/\/blogs.law.columbia.edu\/climatechange\/?p=681"},"modified":"2012-01-31T15:17:15","modified_gmt":"2012-01-31T20:17:15","slug":"epa%e2%80%99s-challenge-implementing-greenhouse-gas-regulations-in-the-face-of-state-hostility","status":"publish","type":"post","link":"https:\/\/blogs.law.columbia.edu\/climatechange\/2011\/03\/18\/epa%e2%80%99s-challenge-implementing-greenhouse-gas-regulations-in-the-face-of-state-hostility\/","title":{"rendered":"EPA\u2019s Challenge: Implementing Greenhouse Gas Regulations in the Face of State Hostility"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div><p>Gregory E. Wannier<br \/>\nDeputy Director<\/p>\n<p>As <a href=\"..\/2010\/11\/24\/white-paper-epas-impending-greenhouse-gas-regulations-digging-through-the-morass-of-litigation\/\">discussed previously<\/a>, EPA has issued a series of four rules designed to initiate regulation of greenhouse gases (GHGs) under the Clean Air Act (\u201cunderlying regulations\u201d).\u00a0 As litigation challenging the legality of these regulations <a href=\"..\/2010\/12\/10\/case-update-dc-circuit-denies-motions-to-stay-ghg-regulations-grants-coordinated-hearing-of-cases\/\">moves forward in the DC Circuit<\/a>, and legislation seeking to limit EPA\u2019s authority <a href=\"..\/2011\/03\/07\/the-house-continuing-resolution-the-dismantling-of-climate-regulation\/\">moves forward in Congress<\/a>, EPA has promulgated a complex series of regulations controlling GHG emissions based on the assumption that both challenges to its authority will fail.\u00a0 This post is the first of a series that will examine EPA\u2019s attempts to regulate GHG emissions from large, stationary sources under the Prevention of Significant Deterioration (PSD) program of the Clean Air Act.<\/p>\n<p><span style=\"text-decoration: underline\"><strong>EPA\u2019s PSD Regulatory Activity<\/strong><\/span><\/p>\n<p>Under PSD, EPA is empowered to set standards whereby regulated facilities reduce their emissions to the level achievable using the Best Available Control Technology (BACT).\u00a0 In promulgating these regulations, EPA generally relies heavily on state participation: as EPA <a href=\"https:\/\/www.epa.gov\/nsr\/ghgdocs\/20101223factsheet.pdf\">acknowledges<\/a>, \u201c[s]tates are best-suited to issue permits to sources of GHG emissions.\u00a0 They have longstanding experience working together with industrial facilities under their jurisdiction to process PSD Permit applications.\u201d<\/p>\n<p>In keeping with this policy, EPA urged states to adopt State Implementation Plans (SIPs) that included provisions for regulating GHGs. \u00a0Such SIPs were required by January 2, 2011, which is the date when vehicle tailpipe regulations would activate PSD requirements.\u00a0 However, not all states have been complicit in this activity: on December 13, 2010 EPA found that 13 states had inadequately prepared for issuing PSD permits for GHG emissions, and accordingly <a href=\"https:\/\/69.175.53.6\/register\/2010\/Dec\/13\/2010-30854.pdf\">issued a SIP Call<\/a> for those 13 states.\u00a0 In this regulation, EPA set a series of deadlines for states and local agencies to submit adequate SIPs, between December 22, 2010, and December 1, 2011, warning these jurisdictions that if they did not submit an adequate plan, EPA would temporarily assume control of PSD permits.<\/p>\n<p>Eight permitting programs (in seven states) <a href=\"https:\/\/edocket.access.gpo.gov\/2010\/2010-32762.htm\">failed to meet their December 22 deadline<\/a>, which prompted EPA to <a href=\"https:\/\/edocket.access.gpo.gov\/2010\/2010-32784.htm\">establish a Federal Implementation Plan<\/a> (FIP) on December 30 to \u201cbackstop\u201d these eight areas, to ensure that large emitters of GHGs will still be able to attain permits starting on January 2, 2011.\u00a0 EPA similarly <a href=\"https:\/\/edocket.access.gpo.gov\/2011\/pdf\/2011-769.pdf\">found a region in Kentucky to have an inadequate SIP<\/a> on January 14, and <a href=\"https:\/\/edocket.access.gpo.gov\/2011\/pdf\/2011-768.pdf\">instituted a separate FIP<\/a> for that area.\u00a0 The remaining four jurisdictions have not yet submitted adequate SIPs, but due to a lack of new or modified emission sources, this gap in coverage is not (yet) expected to seriously impede permit procedures for GHG emissions.<\/p>\n<p>The State of Texas has proven to be particularly challenging for the EPA: not only is it one of the main litigants challenging EPA\u2019s underlying regulations (above), but it has also expressly <a href=\"https:\/\/www.setonresourcecenter.net\/register\/2010\/dec\/30\/2010-32786.pdf\">refused to issue a SIP to regulate GHGs in its PSD permitting<\/a> (see 75 Fed. Reg. \u00a082431 in link), thus defaulting to the last possible date above to pass an adequate SIP (December 1, 2011).\u00a0 In the meantime, EPA has reconsidered its <a href=\"https:\/\/www.federalregister.gov\/articles\/2010\/09\/15\/2010-22670\/approval-and-promulgation-of-implementation-plans-texas-revisions-to-the-new-source-review-nsr-state\">1992 approval<\/a> of Texas\u2019 current SIP, which was made with the explicit understanding that \u201cTexas would need to take further action, such as a SIP revision, to update its PSD rules whenever EPA newly subjected another pollutant to PSD\u201d (see 75 Fed. Reg. 82439).\u00a0 Specifically, EPA ruled that given Texas\u2019s recent recalcitrance to comply with this understanding, the original approval was made in error, and so it has partially retracted this approval.\u00a0\u00a0 This has allowed EPA to run PSD permitting through federal offices via its <a href=\"https:\/\/www.setonresourcecenter.net\/register\/2010\/dec\/30\/2010-32786.pdf\">interim final rule<\/a>.<\/p>\n<p><span style=\"text-decoration: underline\"><strong>Legal Challenges to EPA\u2019s PSD Regulations<\/strong><\/span><\/p>\n<p>The main group of litigation challenging EPA\u2019s PSD regulations is in the DC Circuit.\u00a0 So far, five challenges to EPA\u2019s actions above have been consolidated into one case, Utility Air Regulatory Group(UARG) \u00a0v. EPA (Docket No. 11-1037).\u00a0 The other petitioners include Texas, the SIP\/FIP Advocacy Group (an industry coalition whose members include the National Association of Manufacturers (NAM)), and various mining and energy industry interests.\u00a0 Texas similarly filed a challenge in the 5<sup>th<\/sup> Circuit, but that court <a href=\"https:\/\/www.law.columbia.edu\/null\/download?&amp;exclusive=filemgr.download&amp;file_id=542169\">refused to hear the case<\/a> due to Clean Air Act venue provisions, and instead transferred it to the DC Circuit to be merged with the other cases.\u00a0 More recently, <a href=\"https:\/\/www.nytimes.com\/gwire\/2011\/02\/16\/16greenwire-wyo-joins-texas-in-suing-epa-over-rollout-of-g-86597.html\">Wyoming filed a challenge in the 10<sup>th<\/sup> Circuit<\/a> along with NAM and UARG.\u00a0 These cases are currently facing a <a href=\"https:\/\/www.law.columbia.edu\/null\/download?&amp;exclusive=filemgr.download&amp;file_id=542170\">similar motion for transfer to the DC Circuit<\/a>.\u00a0 Given the CAA\u2019s explicit requirement that issues of \u201cnational scope\u201d be heard in the DC Circuit, the fact that EPA\u2019s challenged regulations applied to multiple states, and the 5<sup>th<\/sup> Circuit precedent here, this transfer seems likely.<\/p>\n<p>These suits have largely challenged EPA\u2019s regulations on December 13, 29, and 30, 2010, which (as discussed above) generally found existing SIPs to be inadequate and established temporary federal permitting programs in response.\u00a0 According to UARG\u2019s <a href=\"https:\/\/www.law.columbia.edu\/null\/download?&amp;exclusive=filemgr.download&amp;file_id=542171\">statement of issues<\/a>, filed on March 16, 2011, the challenges focus on four major questions:<\/p>\n<ol>\n<li>Whether EPA violated the CAA by not allowing three years for states to pass appropriate SIPs in accordance with EPA\u2019s past regulations;<\/li>\n<li>Whether EPA used the wrong provision in the CAA to issue its SIP call;<\/li>\n<li>Whether EPA incorrectly assumed that SIP revisions were required to legally issue permits for GHG emissions; and<\/li>\n<li>Whether, even if EPA acted lawfully above, it invalidly declined to give a reasonable period of time to revise SIPs using notice and comment procedures.<\/li>\n<\/ol>\n<p>Two other petitioners have short and unrevealing statements of issues; Texas has not yet filed its statement of issues.\u00a0 The next post will discuss the merits of these legal challenges.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gregory E. Wannier Deputy Director As discussed previously, EPA has issued a series of four rules designed to initiate regulation of greenhouse gases (GHGs) under the Clean Air Act (\u201cunderlying regulations\u201d).\u00a0 As litigation challenging the legality of these regulations moves forward in the DC Circuit, and legislation seeking to limit EPA\u2019s authority moves forward in [&hellip;]<\/p>\n","protected":false},"author":583,"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],"tags":[5529],"class_list":{"0":"post-681","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-clean-energy","7":"tag-epa-clean-air-act-ghg-rules","8":"czr-hentry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>EPA\u2019s Challenge: Implementing Greenhouse Gas Regulations in the Face of State Hostility - 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\" href=\"https:\/\/blogs.law.columbia.edu\/climatechange\/2011\/03\/18\/epa\u2019s-challenge-implementing-greenhouse-gas-regulations-in-the-face-of-state-hostility\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EPA\u2019s Challenge: Implementing Greenhouse Gas Regulations in the Face of State Hostility - Climate Law Blog\" \/>\n<meta property=\"og:description\" content=\"Gregory E. Wannier Deputy Director As discussed previously, EPA has issued a series of four rules designed to initiate regulation of greenhouse gases (GHGs) under the Clean Air Act (\u201cunderlying regulations\u201d).\u00a0 As litigation challenging the legality of these regulations moves forward in the DC Circuit, and legislation seeking to limit EPA\u2019s authority moves forward in [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/blogs.law.columbia.edu\/climatechange\/2011\/03\/18\/epa\u2019s-challenge-implementing-greenhouse-gas-regulations-in-the-face-of-state-hostility\/\" \/>\n<meta property=\"og:site_name\" content=\"Climate Law Blog\" \/>\n<meta property=\"article:published_time\" content=\"2011-03-18T13:52:28+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2012-01-31T20:17:15+00:00\" \/>\n<meta name=\"author\" content=\"Greg Wannier\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@sabincenter\" \/>\n<meta name=\"twitter:site\" content=\"@sabincenter\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Greg Wannier\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/blogs.law.columbia.edu\\\/climatechange\\\/2011\\\/03\\\/18\\\/epa%e2%80%99s-challenge-implementing-greenhouse-gas-regulations-in-the-face-of-state-hostility\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/blogs.law.columbia.edu\\\/climatechange\\\/2011\\\/03\\\/18\\\/epa%e2%80%99s-challenge-implementing-greenhouse-gas-regulations-in-the-face-of-state-hostility\\\/\"},\"author\":{\"name\":\"Greg Wannier\",\"@id\":\"https:\\\/\\\/blogs.law.columbia.edu\\\/climatechange\\\/#\\\/schema\\\/person\\\/88adf71647fcd6fb1bc4e222498f7f52\"},\"headline\":\"EPA\u2019s Challenge: Implementing Greenhouse Gas Regulations in the Face of State Hostility\",\"datePublished\":\"2011-03-18T13:52:28+00:00\",\"dateModified\":\"2012-01-31T20:17:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/blogs.law.columbia.edu\\\/climatechange\\\/2011\\\/03\\\/18\\\/epa%e2%80%99s-challenge-implementing-greenhouse-gas-regulations-in-the-face-of-state-hostility\\\/\"},\"wordCount\":916,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/blogs.law.columbia.edu\\\/climatechange\\\/#organization\"},\"keywords\":[\"Clean Air Act\"],\"articleSection\":[\"Clean Energy\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/blogs.law.columbia.edu\\\/climatechange\\\/2011\\\/03\\\/18\\\/epa%e2%80%99s-challenge-implementing-greenhouse-gas-regulations-in-the-face-of-state-hostility\\\/\",\"url\":\"https:\\\/\\\/blogs.law.columbia.edu\\\/climatechange\\\/2011\\\/03\\\/18\\\/epa%e2%80%99s-challenge-implementing-greenhouse-gas-regulations-in-the-face-of-state-hostility\\\/\",\"name\":\"EPA\u2019s Challenge: Implementing Greenhouse Gas Regulations in the Face of State Hostility - 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