U.S. EPA Actions to Address Climate

Change

Robert A. KaplanRegional Counsel, Region 5Energy and the Environment

ConferenceMarch 14, 2012

On the Right Track?

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The Administrator’s Principles to Guide EPA Actions

– Common Sense

– Cost-Effectiveness

– Clarity, Achievability and Flexibility

– Transparency

– Focus on the largest emitters

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GHG Endangerment Finding

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U.S. Supreme Court Decision

GHG Endangerment

Finding

First GHG Standards for

Passenger Vehicles

Clean Air Act Process for Stationary Sources

By 2010• U.S. EPA had:

– Finalized GHG standards for passenger vehicles

– Proposed GHG standards for medium and heavy truck tailpipes

– Issued GHG permitting requirements for smokestacks

– Started collecting GHG data under the Mandatory GHG Reporting Program

– Increased use of renewable fuels in motor vehicles

– Launched Global Alliance for Clean Cookstoves with UN Foundation and other partners

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By 2011• U.S. EPA has:

– Collected first round of GHG emissions data from large stationary sources

– Issued first GHG standards for medium and heavy duty trucks

– Issued 17 GHG permits for stationary sources

– Proposed second GHG standards for 2017-2025 passenger vehicles

– Begun work on first GHG standards for power plants and petroleum refineries

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First GHG Standards for Passenger Vehicles

• Issued April 2010 by EPA and DOT• Result of cooperation between

automakers, federal government and states

• Applies to model year 2012-2016 cars and light trucks

• Increases fuel economy by approximately five percent every year

• Sets an average emissions level of 250 grams of CO2 per mile in model year 2016—equivalent to 35.5 mpg

• Reduces greenhouse gas emissions by nearly 950 million metric tons

• Conserves 1.8 billion barrels of oil • Saves about $3,000 per vehicle

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• Proposed in November 2011• Applies to passenger cars,

light-duty trucks, and medium duty passenger vehicles (including all SUVs)

• Saves approximately 4 billion barrels of oil

• Reduces GHG emissions by 2 billion metric tons

• Anticipated $5,200 to $6,600 in fuel savings per vehicle

GHG Standards for 2017-2025 Passenger Vehicles

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First GHG Standards for Heavy- and Medium-Duty Trucks

• Finalized August 2011• Applies to model year 2014-2018• Reduces oil consumption by a

project 530 million barrels • Reduces GHGs by approximately

270 million metric tons• Saves American businesses that

own and operate these vehicles approximate $50 billion in fuel costs

• Reduces other pollutants such as particle pollution

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U.S. OIL CONSUMPTION BY SECTOR, 2009

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LIGHT-DUTY VEHICLE FUEL ECONOMY STANDARDS, 1978-2025

Educating U.S. Consumers

• Develop new labels for advanced technology vehicles (PHEVS and EVs) and update current label

• Provide an estimate of how much fuel or electricity it takes to drive 100 miles

• Give consumers new ways to compare energy use and cost

• Easy to read rating on how a model compares to all others for smog emissions and GHGs

New Fuel Economy label on some 2012 vehicles and all 2013 vehicles

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Greenhouse Gases from Stationary Sources

• EPA determination of health and public welfare risks related to GHG emissions from vehicles leads to implementation of Clean Air Act for stationary sources– Beginning January 2, 2011

• Clean Air Act recognizes that there will be continual improvement in environmental control technology, the need for national consistency, and provisions for case-by-case determinations.

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Prevention of Significant Deterioration (PSD): Permitting Steps under the Tailoring Rule

PSD is aimed at reducing the amount of pollution added to the atmosphere and applies only to those facilities that are newly built or substantially modified

Step 1 January 2, 2011 to June 30, 2011: Sources already subject to PSD “anyway” New sources: 75,000 tpy CO2e Modification: 75,000 tpy

Step 2 July 1, 2011 to June 30, 2013: Continue Step 1 sources plus other large GHG emissions sources New source: 100,000 tpy Modification: 75,000 tpy

Step 3 Rulemaking proposed February 24, 2012, Final July 2012EPA has proposed to maintain current thresholds and streamline permitting processes

D.C. Circuit – Climate Change Litigation

• On Feb 28th and 29th, the U.S. Court of Appeals- D.C. Circuit heard oral arguments in legal challenges to EPA's Endangerment Finding and GHG regulations issued under the Clean Air Act for passenger vehicles and CAA permitting for stationary sources.

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GHG Emissions from the Industrial Sector

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Unspecified Stationary

Combustion12%

Electricity Generation

63%

Cement2%

Iron and Steel2%

Petrochemical 2%

Petroleum Refineries

6%

Pulp and Paper2%

Onshore Oil and Gas Production

4%

Other Oil and Gas Systems

3%

Other 4%

Percentage by Sector

Source: Regulatory Impact Analysis for the Mandatory Reporting of Greenhouse Gas Emissions Final Rule (September 2009)

Greenhouse Gas Monitoring and Reporting Rule

• Directed by Congress in 2008 Appropriations Act• Will provide a better understanding of where U.S. GHG

emissions are coming from• Applies to facilities emitting large quantities of GHGs • Covers an estimated 85 percent of total U.S. GHG

emissions• Data collection began in January 2010• Received data from more than 7,000 sources in

September 2011• Public release of data in January 2012

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2010 GHG Data- Quick Summary• Reports from over 6,700 entities• Power plants are largest stationary source of direct

emissions- 2,324 MMTCe• Refineries are second at 183 MMTCe• CO2 emissions-95%; CH4 emissions- 4%; N2O and F-

gases- 1%• 100 facilities reported over 7 MMTCe including 96

power plants, 2 iron and steel mills, 2 refineries• 2010 data accounts for roughly 80 percent of total U.S.

emissions.– This percentage reflects both upstream suppliers and direct emitters.– Among the data not covered are GHG emissions from smaller

sources, and from agricultural and land-use activities.17

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Ongoing Work to Address Climate Change

• U.S. EPA will continue to:– Promote common-sense strategies that encourage

investment in energy efficiency and updated technologies– Set clear, achievable standards while maintaining

maximum flexibility on how to get there– Seek input from citizens, industry, affected entities, other

stakeholders, as well as our partners– Set the standards that make the most sense – focusing on

getting the most meaningful results through the most cost-effective measures

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Tangled up in green tape

The EPA, Congress, activists, the courts and power companies themselves all share the blame for the chaotic nature of environmental regulation in AmericaFeb 18th 2012 | WASHINGTON, DC | from the print edition PITY the engineers responsible for keeping America’s coal-fired power plants up to standard. Late last year a court halted the adoption of new regulations on interstate air pollution that would have affected lots of them—just two days before they were due to go into force. The suspended regulations, in turn, were themselves a replacement for an earlier set of rules which had been thrown out by the courts in 2008. The older lot have now been temporarily reinstated, while the court hears various challenges to the new ones. What the outcome will be is anyone’s guess. SOURCE: http://www.economist.com/node/21547804

In the United States, power plants emit…

Sources of Total Mercury

Fish Consumption Advisories for Mercury are Everywhere

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“For over a decade, companies have recognized that the industry would need to install controls to comply with the act’s air toxicity requirements, and the technology exists to cost effectively control such emissions, including mercury and acid gases.… Contrary to the claims that the EPA’s agenda will have negative economic consequences, our companies’ experience complying with air quality regulations demonstrates that regulations can yield important economic benefits, including job creation, while maintaining reliability.”

“Contrary to claims that the EPA’s agenda will have negative economic consequences, our companies’ experience complying with air quality regulations demonstrates that regulations can yield important economic benefits, including job creation, while maintaining reliability.”

THANK YOU!

Robert Kaplan

EPA Region 5

Regional Counsel

Kaplan.robert@epa.gov

312-886-1499

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