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NACAA Submits Comments on EPA’s Proposed Revisions to the SO2 NAAQS (February 4, 2010)
NACAA submitted comments on EPA’s proposal to revise the primary sulfur dioxide (SO2) NAAQS, supporting the establishment of a new 1-hour SO2 standard between 50-100 parts per billion (ppb), in keeping with the recommendations of the Clean Air Scientific Advisory Committee (CASAC). NACAA also supports revocation of the existing annual and 24-hour standard, as proposed by EPA and recommended by CASAC, but notes that the agency should explore setting a new 24-hour standard in a not-to-be-exceeded format, to protect against multiple high exposures in a day. With respect to monitoring, NACAA’s comments urge EPA to allow more flexibility in the monitoring requirements and also take issue with the agency’s costs estimates, stating that actual development costs for the monitoring system are likely to be double EPA’s estimates. NACAA also states that the National Monitoring Strategy needs to be updated to reflect EPA’s more source-oriented monitoring approach.

President Proposes Increase of $82.5 Million to State and Local Air Grants for FY 2011 (February 1, 2010)
President Barack Obama has announced his FY 2011 budget proposal, which includes $10.3 billion for EPA's budget, representing a decrease of approximately $300 million (2.7 percent) from last year. The budget also requests an increase of $82.5 million for state and local air grants, for a total of $309.1 million. This increase includes the following changes from the FY 2010 appropriations: a $45-million increase to support expanded core state activities for implementing revised and more stringent NAAQS and reducing public exposure to air toxics; a $25-million increase to state and local agencies in developing capacity to permit large sources of greenhouse gas emissions; a $15-million increase for additional state air monitors required by the revised NAAQS (likely under Section 103, which does not require state/local matching funds); and a $2.5-million decrease for school air toxics monitoring initiative. The budget also calls for $60 million for Diesel Emissions Reduction Act (DERA) funding (equal to FY 2010), and an elimination of the $20 million Targeted Airshed grants awarded in FY 2010. EPA has provided documents that contain details about the President's FY 2011 Budget Request. The first is the Budget in Brief (http://www.epa.gov/budget/2011/2011bib.pdf), a 96-page document. Please see the following pages for some of the most important information related to the air quality program: Highlights - pp 9-16; Clean Air and Global Climate Change - pp 17-23; State and Tribal Assistance Grants (STAG) Chart - p. 67; STAG Information related to Air Grants - p. 72; and STAG Information related to Diesel Emissions Reduction Act (DERA) funding - pp. 83-84 ($60 million requested in FY 2011, equal to FY 2010). The second is the FY 2011 Congressional Budget Justification, a 997-page document provided to Congress (http://www.epa.gov/budget/2011/2011cj.htm). Please see the following pages for air-related information: Clean Air and Global Climate Change specifics - beginning on p. 14; Science and Technology Budget related to Air Toxics and Air Quality (EPA programs) - beginning on p. 59; Environmental Programs and Management Budget related to Air Toxics and Air Quality (EPA Programs) – beginning on p. 202; STAG-specific Information - beginning on pages 707, 711, 770; and details about STAG Grants for Air Quality - p. 773.

EPA Finalizes Nitrogen Dioxide NAAQS (January 25, 2010)
EPA finalized revisions to the nitrogen dioxide (NO2) NAAQS, setting a new 1-hour NO2 standard at the level of 100 parts per billion (ppb). EPA also is retaining, with no change, the current annual average NO2 standard of 53 ppb. To determine compliance with the new standard, EPA is establishing new ambient air monitoring and reporting requirements for NO2. In urban areas, monitors are required near major roads as well as in other locations where maximum concentrations are expected. Additional monitors are required in large urban areas to measure the highest concentrations of NO2 that occur more broadly across communities. Working with the states, EPA will site a subset of monitors in locations to help protect communities that are susceptible and vulnerable to NO2-related health effects. Click here for further information.

NACAA Sends Letter to Senate Opposing Disapproval of GHG Endangerment Finding (January 20, 2010)
NACAA sent a letter to members of the U.S. Senate expressing opposition to a joint resolution expected to be offered imminently by Senator Lisa Murkowski (R-AK) to disapprove EPA’s greenhouse gas (GHG) endangerment finding. The endangerment finding, issued on December 7, 2009, was made under section 202(a) of the Clean Air Act based on EPA’s conclusion that current and projected concentrations of the six key well-mixed GHGs – carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride – in the atmosphere threaten the health and welfare of current and future generations. In the letter, the NACAA Co-Presidents, Vince Hellwig (MI) and Larry Greene (Sacramento, CA), note that EPA’s finding was made in response to the 2007 Supreme Court decision in Massachusetts v. EPA, in which the Court ruled that GHGs are an “air pollutant” as defined in the Clean Air Act and, therefore, EPA must either issue a finding that GHGs do or do not endanger public health and welfare or conclude that the science is so uncertain as to preclude issuing such a finding. In accordance with the Supreme Court decision, EPA undertook a thorough review of the science, proposed a finding of endangerment, took public comment on its proposal and then issued its final decision. When EPA issued its proposed finding, NACAA submitted comments supporting it, stating that “[t]he evidence is overwhelming that GHG emissions from human activities are causing global warming and that this warming is endangering public health and welfare.” The NACAA Co-Presidents conclude their letter by stating, “We firmly believe that Congress should respect the Supreme Court decision and EPA’s deliberative and thorough process in coming to its conclusion about GHGs. Accordingly, NACAA opposes any attempt to overturn the finding by EPA that GHGs endanger public health and welfare and we urge you to do the same.” To view the letter, click here.

NACAA Submits Final Comments on EPA’s Proposed Tailoring Rule (December 28, 2009)
NACAA has submitted its final comments on EPA's proposed tailoring rule. To view the comments, click here. NACAA recommended that EPA 1) provide states and localities additional time to increase their major source thresholds above the existing 100/250 tpy levels, 2) raise the thresholds initially to 50,000 tpy, 3) provide sources additional time to integrate GHG emissions into their permits, 4) establish presumptive Title V fees and 5) assure the accuracy of its estimates of affected sources.

EPA Issues Final Rule for Ocean-Going Vessels (December 22, 2009)
EPA announced its final regulation setting more rigorous engine and fuel standards for new marine compression-ignition vessels (i.e., ocean-going vessels, or OGVs). The rule includes two additional tiers of NOx standards for Category 3 marine diesel engines installed on OGVs flagged or registered in the U.S. The near-term tier will apply to new engines beginning in 2011. This tier will require more efficient use of current engine technologies such as engine cooling, engine timing and advanced computer controls and is expected to result in a 15- to 25-percent reduction in NOx levels below current standards. The long-term tier of standards will apply beginning in 2016 and will require the use of high-efficiency emissions control technology, including selective catalytic reduction, to reduce NOx from current levels by 80 percent. EPA’s new rule also sets OGV emissions standards for hydrocarbons and carbon monoxide. The agency did not adopt a PM emissions standard but states that there will be a significant PM emissions benefit through the Emission Control Area fuel sulfur requirements (expected to be finalized by the International Maritime Organization in 2010) that will apply to ships that operate in areas that affect air quality in the U.S. The new rule does, however, require engine makers to measure and report PM emissions. Another component of the rule is a change to the diesel fuel program to allow for the production and sale of 1,000-ppm sulfur fuel for use in OGVs. The new fuel requirements generally prohibit the production and sale of marine fuel oil with greater than 1,000-ppm sulfur for use in U.S. waters unless the vessel uses alternative devices, procedures or compliance methods to achieve equivalent emissions reductions. The final rule and related information are available at http://www.epa.gov/otaq/oceanvessels.htm.

NACAA Comments on Emissions Factors Program Improvements Announced Notice of Proposed Rulemaking (December 14, 2009)
NACAA submitted comments on EPA’s Announced Notice of Proposed Rulemaking for the Emissions Factors Program Improvements, which was published in the Federal Register on October 14, 2009.  NACAA’s comments provided input on each of 14 specific questions EPA had included in the notice, as well as several general points.  Most importantly, NACAA expressed concern that the existing Emissions Reporting Tool is not based on current technology and would not be an effective platform on which to base a national emission factor program.  NACAA recommended that EPA instead employ a web-enabled technology platform.  Additionally, NACAA recommended that EPA use a system that provides state and local agencies with access to raw emissions data.  Since data quality is a critical component of an effective emissions inventory program, the existing system, which relies on AP-42 and WebFIRE and lacks quantitative measures to assess data quality, should be improved upon.  NACAA also noted that emission factors are used for many purposes and that determinations about the appropriateness of using them should be evaluated in the context in which they are applied and decided upon by state and local agencies on a case-by-case basis.
 

EPA Issues TRI Data for 2008 (December 8, 2009)
EPA released the Toxics Release Inventory (TRI) data for 2008, which contain information about disposal and releases of a list of toxics substances to the air, land and water. The 2008 data include information from 21,695 facilities, reporting 3.86 billion pounds of on-site and off-site disposal or other releases of chemicals. Of these disposals and releases, 30 percent (1.14 billion pounds) were air emissions. Since 2007, total TRI disposal and releases decreased by 6 percent (257 million pounds), with air emissions having the largest decrease of any media – 14 percent (179 million pounds). From 2001 to 2008, overall disposal and releases of the listed toxics substances have decreased by 1.72 billion pounds, while air emissions have decreased by about 490 million pounds, accounting for the largest decreases of any media. For TRI information, see www.epa.gov/tri/tridata/tri08/national_analysis/index.htm.

NACAA Comments on Reconsideration of Johnson Memo (December 7, 2009)
NACAA submitted comments to EPA on the agency’s proposed reconsideration of its prior regulatory interpretation of the phrases “subject to regulation” and “regulated pollutant” as those terms are used in the Clean Air Act. In its comments, the association generally supported EPA’s proposed reconsideration of its prior interpretation and agrees that neither 1) the CO2 monitoring rules, 2) the state rule regarding ammonia controls (and similar situations) nor 3) an endangerment finding should trigger PSD and Title V program applicability for a pollutant. NACAA also commented that EPA should adopt an interpretation of the statute that provides for orderly implementation of its requirements, and that EPA should provide a narrow interpretation and not address issues before they are ripe. To view NACAA’s comments, click here.

EPA Issues Final GHG Endangerment Finding (December 7, 2009)
EPA made two findings under the Clean Air Act that will allow the agency to proceed with its regulation of mobile source greenhouse gas (GHG) emissions. The Administrator found that the current and projected concentrations of six “well-mixed” GHGs -- carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride -- in the atmosphere threaten the public health and welfare of current and future generations (the GHG endangerment finding). The Administrator also found that the combined emissions of these well-mixed GHGs from new motor vehicles and new motor vehicle engines contribute to the GHG pollution that threatens public health and welfare (the cause or contribute finding). The findings do not impose any requirements on industry or others to reduce GHG emissions but are a necessary prerequisite for EPA to finalize its proposed GHG emission standards for light-duty vehicles, which were proposed on September 15, 2009. Click here for the findings.

NACAA Supports EPA Proposal to Withdraw Refinery Residual Risk Rule (November 23, 2009)
NACAA sent a comment letter to EPA expressing support for the agency’s October 28, 2009 proposal to withdraw the Residual Risk standard for petroleum refineries that was issued on January 16, 2009. Residual Risk standards, pursuant to Section 112(f) of the Clean Air Act, are intended to address risks remaining from emissions of hazardous air pollutants from a source category eight years after the imposition of the MACT standard. NACAA had submitted comments on the proposed Residual Risk standard in December 2007 and December 2008, expressing concern about the methodology and risk assessment EPA had used to develop the proposal, the inadequacies of the data on which the analyses were based and the control strategies under consideration. EPA issued the final standard last January, which it is now proposing to withdraw, without addressing those deficiencies. NACAA noted that the association is pleased that EPA plans to withdraw the rule and develop a new proposal using improved information and analysis.

EPA Releases Proposal to Revise Sulfur Dioxide NAAQS (November 17, 2009)
EPA is proposing to revise the primary standard for sulfur dioxide (SO2) to a level of between 50 and 100 parts per billion (ppb) measured over one hour. The existing primary standards were 140 ppb measured over 24 hours and 30 ppb measured over an entire year, and EPA is proposing to revoke these two standards. EPA is not proposing to revise the secondary standard at this time. EPA is also proposing changes to the ambient air monitoring and reporting requirements for SO2. These proposed requirements are expected to result in a minimum of 348 SO2 monitoring sites. EPA estimates that at least one-third of the SO2 monitors already in operation may meet the proposed siting requirements. The proposal also contains a proposed implementation rule. Designations would be finalized June 2012 and SIPs due winter 2014, with an attainment date of summer 2017. EPA will accept comments for 60 days after the proposed rule is published in the Federal Register. The agency will hold a public hearing on the proposed rule January 5, 2010, in Atlanta, GA. EPA will issue a final rule by June 2, 2010. Click here for more information.

EPA Agrees to Issue MACT for PVC Plants (November 5, 2009)
In response to a lawsuit brought by environmental groups, EPA has agreed to issue standards to control emissions of hazardous air pollutants (HAPs) from Polyvinyl Chloride and Copolymer (PVC) Production facilities. According to the agreement, EPA must propose a MACT standard for PVC plants by October 29, 2010 and issue a final regulation by July 29, 2011. EPA originally issued a MACT standard in 2002 that was based merely on the agency’s vinyl chloride standard from the 1970s. In 2004, the court vacated the standards and ordered EPA to develop a new rule that complied with the requirements of the Clean Air Act. Since that time, there has been no rule in place and state and local agencies have been required to develop case-by-case MACT, pursuant to the “hammer” provisions of Section 112(j). In order to assist agencies that needed to issue case-by-case MACT, in July 2006, NACAA (then STAPPA/ALAPCO) published recommended MACT limits for vinyl chloride, based on the parameters for establishing MACT under Section 112(d) of the Clean Air Act and using data the association collected to determine the MACT floor. [For further information: www.earthjustice.org/news/press/2009/gulf-coast-communities-praise-epa-plan-to-limit-pvc-plant-pollution.html and Air Web – Air Toxics Committee page]

NACAA Testifies on Proposed LDV GHG and CAFE Standards (October 23, 2009)
NACAA testified at a public hearing in New York convened by EPA and the National Highway Traffic Safety Administration on the agencies' joint proposed rule to establish light-duty vehicle (LDV) greenhouse gas (GHG) emissions standards and Corporate Average Fuel Economy Standards. To view the testimony, click here. The association, represented by Steve Flint (NY), offered support for timely and effective action to curb GHG emissions from LDVs stating, "The proposed standards to reduce GHG emissions from light-duty vehicles in model years 2012 through 2016 are a very commendable first step forward in what must be an ongoing effort to make light-duty vehicles and, in fact, our nation's entire mobile source fleet and fuels as clean and 'green' as possible," NACAA also expressed confidence that the standards, which can be achieved with known and available technologies, will be implemented with success, noted the particular suitability of the Clean Air Act for regulating motor vehicle pollution and highlighted the significant role that state leadership and innovation - fostered by the provision of states' rights in the Clean Air Act - played in the development of this historic proposal.

EPA Issues Final Designations for the 24-Hour PM2.5 NAAQS Set in 2006 (October 8, 2009)
EPA issued final designations for the 24-hour fine particulate matter PM2.5 NAAQS set in 2006. The designations will be effective 30 days after publication in the Federal Register. The original designations for this standard, based on 2007 data, were completed under the previous administration in December 2008. They were subsequently reviewed by the current administration, which decided to revise the designations to reflect 2008 data. Based on 2008 data, 31 areas are being finally designated as nonattainment (versus 54 areas that were previously identified based on 2007 data). In addition to these 31 areas, there are three counties that were not included previously (Pinal Co., AZ, Plumas Co., CA, and Shasta Co., CA) with monitoring data now indicating potential violations of the 2006 24-hour PM2.5 NAAQS. For these three areas, EPA will work with the affected states and tribes to establish nonattainment boundaries for these areas and, accordingly, is deferring the designations for these areas until EPA and the states and tribes can develop sufficient information to determine the appropriate boundaries. In addition, in reviewing the 2008 data, EPA identified two areas of the country that do not meet the 1997 annual PM2.5 standard (Harris Co., TX and Pinal Co., AZ). These two areas will receive letters from their respective Regional Administrator beginning the process of redesignating to nonattainment. For those 31 areas with final nonattainment designations, SIPs will be due three years after the effective date of the designations (the due date is likely to be November 2012) and the attainment date will be no later than five years after the effective date of the designations (November 2014). Click here for further information.

Congress Adopts Continuing Resolution to Keep Government in Operation for an Additional Month (September 30, 2009)
The Senate adopted and President Obama signed the Legislative Branch appropriations bill for FY 2010, which included a provision to fund the federal government’s operations during the first month of the new fiscal year (until October 31, 2009). This Continuing Resolution (CR), which the House had previously approved, will allow additional time for Congress to pass the individual appropriations bills that fund specific departments and activities, including EPA’s budget under the Interior, Environment, and Related Agencies legislation. The FY 2009 fiscal year ended on September 30, 2009 without any of the appropriations bills being signed into law, thus necessitating a CR to avoid a government shut-down. With respect to EPA’s budget, on September 24, 2009, the Senate adopted the Interior, Environment, and Related Agencies appropriations bill, calling for $226.6 million in federal grants for state and local air agencies under Sections 103 and 105 of the Clean Air Act. The bill is awaiting action by a House-Senate conference committee that will reconcile any differences between the House- and Senate-passed versions of the bill. The House and Senate must then adopt the conference’s provisions before sending the bill to the President for signature. The conference committee is expected to act shortly. For updates on Appropriations activities, see http://thomas.loc.gov/home/approp/app10.html.

Senators Kerry and Boxer Release Climate Bill (September 30, 2009)
Senators Barbara Boxer (D-CA) and John Kerry (D-MA) introduced the Clean Energy Jobs and American Power Act, which would cap greenhouse gas (GHG) emissions in the U.S. and allow covered entities to trade GHG allowances to meet their reduction targets. In addition to a program designed to reduce GHG emissions, the bill also promotes the development and deployment of renewable energy and energy efficiency and provides resources for adapting to climate change. Click here for a link to the bill and related documents.

NACAA Comments on Portland Cement Kilns MACT Proposal (August 20, 2009)
NACAA submitted comments on EPA's proposed National Emission Standards for Hazardous Air Pollutants from the Portland Cement Manufacturing Industry, which were published in the Federal Register on May 6, 2009 (74 Federal Register 21136).  NACAA expressed support for EPA’s proposal of a meaningful regulation for new and existing Portland Cement Kilns that is designed to reduce emissions of mercury, total hydrocarbons and particulate matter and hydrochloric acid.  NACAA noted that the proposal is an improvement over the earlier rule and proposals for the source category.  Additionally, the association is pleased that the proposal addresses problems identified in two court rulings on other regulations that have bearing on the provisions for Portland Cement Kilns – exemptions for Shutdown and Malfunction (SSM) events and the improper calculation of the MACT floor (in the Brick and Clay MACT).  NACAA also commented on specific monitoring provisions and applauded the requirement for the use of continuous emission monitors.
 

NACAA Comments on FY 2010 Addendum to EPA’s National Program and Grant Guidance (August 11, 2009)
NACAA provided comments to EPA on the Office of Air and Radiation’s addendum to the National Program and Grant Guidance. The addendum provided specifics about EPA’s plans for allocating Section 103 and 105 grants among activities and regional offices and supplemented information contained in the original guidance issues on April 28, 2009. NACAA’s comments focused on the need for additional grants for state and local air agencies and the importance of maximizing the federal resources that are available. Specifically, NACAA recommended that funds proposed to be allocated to the “Energy Facility Air Quality Analysis” program ($3,900,000) and the “Community-Scale Air Toxics Monitoring” program ($2,500,000) be put into the base grants for allocation to the regions. Additionally, NACAA identified a list of activities that are the federal government’s responsibility and should not be funded by state and local air grants. NACAA also reiterated the need to fund monitoring PM2.5, lead, nitrogen dioxide, the secondary ozone standards, and air toxics under Section 103.

NACAA Comments on EPA Proposed Standards for Asphalt Processing and Roofing Manufacturing (August 10, 2009)
NACAA submitted comments to EPA on the proposed standards for Asphalt Processing and Asphalt Roofing Manufacturing facilities that are area sources of hazardous air pollutants (HAPs).  The association expressed support for effective regulations to reduce emissions of HAPs from area sources and noted that the proposal was disappointing in that it would not result in additional reductions in emissions from the source category.  In addition to offering specific recommendations about some of the technical issues in the proposal, NACAA noted that some state and local air agencies may find it difficult to adopt and enforce additional area source rules without significantly increased federal funding.

NACAA Offers Senate Recommendations for Climate Legislation (August 5, 2009)
NACAA transmitted a letter to U.S. Senators offering the association’s
perspectives on the climate change legislation that is currently under development.
Noting that the bill passed by the House in June – the American Clean Energy and Security Act of 2009 (ACES) – is based on core principles that NACAA supports, the association urged that, as the Senate drafts its climate proposal, it “begin with ACES as a baseline, retain certain fundamental elements and incorporate changes regarding several other significant provisions that will shore up the effectiveness of the legislation.” NACAA made seven specific recommendations in its letter, each of which is consistent with the comments and recommendations the association made throughout the House debate and adoption of ACES: 1) retain the framework of an economy-wide program, including such components as strong emissions limits and a cap-and trade program, 2) strengthen offset provisions, including for agriculture and forestry, 3) preserve state and local authorities, delineate specific implementation roles for states and localities and authorize funding for state/local implementation efforts, 4) retain important Clean Air Act programs for new and existing sources inside and outside the cap, 5) include a Low Carbon Fuel Standard and support the inclusion of indirect emissions in lifecycle greenhouse gas emissions analyses, 6) strengthen the transportation planning provisions and 7) strengthen the Renewable Electricity Standard. Senate Environment and Public Works Committee Chairman Barbara Boxer (D-CA) has indicated the Committee will have a bill ready when the
Senate returns from recess after Labor Day.

EPA Issues Addendum to FY 2010 Grant Guidance that Includes Allocation by Program and Region (July 20, 2009)
EPA has issued an addendum to the April 28, 2009 National Program and Grant Guidance that includes tentative regional allocations and other information related to FY 2010 Section 103 and 105 grants. The original program and grant guidance was issued in April 28, 2009, but it included a placeholder for the spreadsheet showing the allocation of Sections 103 and 105 grants among regions and program activities, among other things. The addendum provides the missing information and reflects what is currently known about Congressional appropriations actions to date, as they pertain to the federal air grants (e.g., it notes that initial language in the appropriations bills directs fine particulate matter monitoring grants to be funded under the authority of Section 103, rather than 105.). The FY 2010 regional allocation does not reflect any changes to the distribution based on EPA’s efforts to develop an updated allocation scheme. The final allocation is dependent on remaining Congressional action and would have to be amended to reflect any changes Congress may mandate.

CDC Launches Public Health Tracking Network (July 7, 2009)
The Centers for Disease Control and Prevention (CDC) has launched the Public Health Tracking Network, which is designed to track how environment contaminants affect public health and provide information on a host of environmental problems and health issues. The network is an interactive, Internet-based system that tracks and reports environmental hazards and the health problems that may be related to them. It currently provides information from health departments in 16 states and one city, which were involved in a pilot program to build local tracking networks. The health departments in these areas provide data to the national tracking network to help identify trends in public health data (e.g., hospital admissions for asthma). Among the types of information the network provides are data about health (e.g., asthma, cancer, carbon monoxide poisoning and heart attacks), environmental problems (e.g., air and water pollution) and exposure (e.g., lead in blood). The jurisdictions participating in the network are: California, Connecticut, Florida, Maine, Maryland, Massachusetts, Missouri, New Hampshire, New Jersey, New Mexico, New York, New York City, NY, Oregon, Pennsylvania, Utah, Washington and Wisconsin. For additional information about the network, click here.

NACAA Comments on Paint and Allied Products Area Source Proposal (June 30, 2009)
NACAA submitted comments to EPA on the agency’s proposed National Emission Standards for Hazardous Air Pollutants for Area Source Standards for Paints and Allied Products Manufacturing, which were published in the Federal Register on June 1, 2009. NACAA recommended additional funding for state and local agencies to implement the rule. The association also noted a concern that the proposed rule would apply more broadly than EPA had intended, perhaps applying even to home-improvement and hardware stores that mix small amounts of paint. Finally, NACAA recommended several amendments to clarify the provisions and make the rule consistent with requirements in previous standards. [For further Information: Air Web – Top Headlines and Air Toxics Committee page].

EPA Grants CA Waiver (June 30, 2009)
EPA Administrator Lisa P. Jackson today granted California’s request for a waiver of federal preemption under the Clean Air Act to enforce the state’s motor vehicle greenhouse gas emissions standards. This action clears the way for California, and the 14 other states that have adopted the standards, to enforce this program. The decision withdraws and replaces that of the previous administration, issued March 6, 2008, denying California’s request. To view today’s decision, click here.

House of Representatives Passes Global Warming Bill (June 26, 2009)
The House of Representatives by a vote of 219-212 approved the American Clean Energy and Security Act of 2009 (H.R. 2554/H.R. 2998). The Act would create a cap-and-trade system to control emissions of greenhouse gases (GHGs), with a cap that gradually reduces GHG emissions to 17 percent below 2005 levels by 2020 and 83 percent below 2005 levels by 2050 . Click here for the results of the roll call vote on the bill. Click here for further information.

House Appropriations Subcommittee Calls for Air Grants Equal to President’s Request (June 10, 2009)
The House Appropriations Subcommittee on Interior, Environment, and Related Agencies marked up legislation containing EPA’s FY 2010 budget and recommended $226.6 million for state and local air grants under Sections 103 and 105 of the Clean Air Act. This amount is equal to the President’s request for FY 2010 and is $2.5 million above FY 2009 levels (with the increase earmarked for toxics monitoring near schools). The Subcommittee also included $60 million for Diesel Emission Reduction Act (DERA) funding, which is equal to both FY 2009 levels and the President’s FY 2010 request. NACAA had recommended $270 million for state and local air grants – an increase of $46 million above FY 2009 -- in testimony before the House Appropriations Subcommittee on Interior, Environment, and Related Agencies. However, the Subcommittee was allocated $25 million less than the amount that would have been needed to fully fund the President’s request and was required to distribute those funds among the programs within its jurisdiction. Prior to the mark-up, a bi-partisan group of 43 Representatives sent a letter to Subcommittee Chairman Norm Dicks (D-WA) and Ranking Member Michael Simpson (R-ID) recommending $270 million for state and local air grants and $200 million for DERA in FY 2010. NACAA members had been given a draft of this letter and encouraged to contact their delegations to urge them to co-sign the letter. The full House Appropriations Committee is expected to act on the funding bill on June 18; the House Appropriations leadership hopes to bring the legislation to the House floor by June 25. A written report of the Subcommittee’s action and any additional instructions is not yet available. For a link to the Subcommittee’s website, click here.

NACAA Testifies on RFS Proposal (June 9, 2009)
NACAA presented testimony at EPA’s public hearing on the agency’s proposed changes to the renewable fuel standard (RFS) program. The association expressed its support for the goals of reducing U.S. dependency on foreign oil and reducing greenhouse gas (GHG) emissions. NACAA articulated, however, its concern “that commitments to increase the use of renewable fuels for the purposes of energy security and GHG emissions reductions have been made without sufficient study of the potential adverse air quality and human health impacts” and “urge[d] strongly that before EPA takes final action on this rule, the agency ensure that the full range of air quality impacts of the RFS – upstream and downstream – is comprehensively quantified, that appropriate mitigation measures are identified and that provisions for timely implementation of these measures are included in the bill.” A second key issue addressed by NACAA was the critical need to consider of the full lifecycle emissions impact of the RFS, including both direct and indirect emissions, such as land use changes. To view NACAA’s testimony - which was presented by the association’s Executive Director, Bill Becker - click here.

NACAA Comments on Toxics Proposal for Reciprocating Internal Combustion Engines (June 3, 2009)
NACAA submitted comments on the proposed National Emission Standards for Hazardous Air Pollutants (NESHAP) for Reciprocating Internal Combustion Engines (RICE), which were published in the Federal Register on March 5, 2009. NACAA commended EPA for proposing to limit Hazardous Air Pollutant (HAP) and diesel emissions from RICE sources. NACAA noted that the proposed standards will affect many sources, including area sources. In light of the fact that state and local air agencies are currently underfunded by a significant amount, EPA should provide sufficient additional funds for state and local clean air agencies to properly implement the provisions. In addition to providing technical comments and suggesting corrections and clarifications, NACAA recommended catalyzed diesel particulate filters on new and existing non-emergency diesel-powered RICE and the use of ultra low sulfur diesel fuel.

President Issues Policy on State Preemption (May 20, 2009)
President Barack Obama issued a memorandum to federal executive departments and agencies articulating the Administration’s policy with respect to the preemption of state law, stating that, “preemption of State law by executive departments and agencies should be undertaken only with full consideration of the legitimate prerogatives of the States and with a sufficient legal basis for preemption.” He notes in the memorandum that states have distinctive circumstances and values and it is often appropriate for them to apply rules and principles that reflect those circumstances and values. The memo indicates that in recent years, executive departments and agencies, “have sometimes announced that their regulations preempt State law, including State common law, without explicit preemption by the Congress or an otherwise sufficient basis under applicable legal principles.” The President issued the following instructions with respect to state preemption: federal departments and agencies may not state in regulatory preambles their intention to preempt state law unless the codified regulation includes such provisions; codified regulations should not include preemption provisions unless they would be justified under the principles described in Executive Order 13132 (August 4, 1999); and departments and agencies should review regulations issued during the last 10 years that contain preemption provisions to determine if the preemption is justified and, if necessary, take appropriate action, including amending the provisions.

NACAA Submits FY 2010 Appropriations Testimony to Senate (May 14, 2009)
NACAA provided testimony to the Senate Appropriations Subcommittee on Interior, Environment, and Related Agencies, which has jurisdiction over EPA’s budget, regarding FY 2010 appropriations. The subcommittee does not hold hearings for public witnesses and only accepts written testimony. NACAA recommended an increase in Section 103/105 grants of $43.4 million above the President’s recently announced budget request, which was $226.6 million for state and local air pollution control grants, for a total of $270 million. This would be an increase of $46 million above FY 2009 levels. Additionally, NACAA recommended that the PM2.5 and lead monitoring programs remain under the authority of Section 103. Included in the testimony were results from NACAA’s survey of state and local agencies’ funding needs, which show that federal grants to state and local air agencies should be increased by over $550 million. In light of the true needs, NACAA’s request for a $43.4-million increase is modest. Bill Becker provided similar testimony on behalf of NACAA to the House Subcommittee on Interior, Environment, and Related Agencies on April 28, 2009. 
 
FY 2010 Budget Proposal Calls for Slight Increase in State and Local Air Grants (May 7, 2009)
President Obama’s proposed FY2010 budget, the details of which were just announced, calls for an increase in federal grants for state and local air quality agencies of $2.5 million above the FY 2009 appropriation, for a total of $226.6 million. It appears that the Administration’s request calls for PM2.5 monitoring grants to be funded under Section 105 authority, which would necessitate a 40-percent match by state and local agencies, rather than Section 103 of the Clean Air Act. The proposed budget also calls for $60 million for Diesel Emission Reduction Act (DERA) funding, equal to FY 2009, but does not include an additional $15 million in California reduction project grants that were contained in the FY 2009 appropriation. NACAA’s recently released funding study indicates that federal grants to state and local air grants should be increased by over $550 million. In recognition of the funding constraints presented by the current economy, NACAA has recommended a modest increase of $46 million in FY 2010, for a total of $270 million. For budget details, see www.whitehouse.gov/omb/budget/fy2010/assets/epa.pdf (see especially page 7) and www.epa.gov/budget/2010/2010bib.pdf (see especially page 66).

NACAA Issues Report on State and Local Funding Needs
NACAA released a report on state and local air agency funding needs – Investing in Clean Air and Public Health – based on information collected from the association’s survey of state and local air pollution control agencies. The purpose of the survey was to determine the level of increases in resources (especially federal grants under Sections 103 and 105) that would be necessary to fully support the programs that state and local air agencies are already undertaking and to carry out additional programs needed to meet the intent of the Clean Air Act. According to the survey results, state and local agencies’ contributions are 77 percent of their budgets, while federal grants constitute only 23 percent, far different from the 60 percent federal and 40 percent state/local split envisioned by the Clean Air Act. Based on the survey, a total of $1.3 billion is needed for state and local air programs, which would require an increase of $550-575 million in federal grants under Sections 103 and 105 of the Clean Air Act. In light of the current economic climate, however, NACAA is recommending only a modest increase for FY 2010: an additional $46 million in federal grants under Sections 103 and 105 over FY 2009 levels, for a total of $270 million. The survey results will be included in NACAA’s testimony before the House Appropriations Subcommittee on Interior, Environment and Related Agencies. Click here for the press release announcing the report.

EPA Proposes Mercury Controls on Cement Kilns (April 21, 2009)
EPA proposed a Maximum Achievable Control Technology standard to regulate mercury and other hazardous air pollutants from Portland Cement Kilns. The proposal, resulting from a legal challenge by nine states and environmental and citizens groups, is the first to address emissions of mercury from cement kilns, which are among the largest sources of mercury emission in the U.S. It is estimated that the proposed rule will reduce mercury emissions by 13,400 pounds. Additionally, it will lower releases of hydrochloric acid, benzene and other toxins and, as a result of provisions to address emissions of lead, arsenic and other metals, will also result in reductions in emissions of particulate matter and sulfur dioxide. Finally, the new rule, if adopted, would require cement kilns to monitor emissions of mercury for the first time. The states that were involved the lawsuit and court settlement resulting in the proposal are: Connecticut, Delaware, Illinois, Maryland, Massachusetts, Michigan, New Jersey, New York and Pennsylvania. EPA will accept public comment on the proposal for 60 days after it is published in the Federal Register. Click here for the proposal

EPA Issues Proposed Endangerment Finding for GHG Emissions (April 17, 2009)
EPA has issued a proposed finding that greenhouse gases (GHGs) contribute to air pollution that may endanger public health and welfare (also known as the endangerment finding). The proposal stems from the U.S. Supreme Court decision in Massachusetts v. EPA, 549 U.S. 497 (2007), where the Supreme Court found that GHGs are air pollutants covered by the Clean Air Act. The Court held that the Administrator must determine whether or not emissions of GHGs from new motor vehicles cause or contribute to air pollution which may reasonably be anticipated to endanger public health or welfare, or whether the science is too uncertain to make a reasoned decision. EPA is proposing to find that current and projected concentrations of six GHGs as a mix in the atmosphere threaten the public health and welfare of current and future generations. EPA is also proposing to find that combined emissions of four of the six GHGs from new motor vehicles and motor vehicle engines contribute to the atmospheric concentrations of these key GHGs and thus to the threat of climate change. EPA is not proposing any regulations and the endangerment finding itself does not trigger any automatic regulations under the Act. The deadline for comment will be 60 days after publication in the Federal Register. EPA will hold two public hearings on the proposed finding, one on May 18, 2009, in Arlington, Virginia, and one on May 21, 2009, in Seattle Washington. For further information, click here.

NACAA Supports EPA Approval of California Waiver (April 6, 2009)
NACAA submitted written comments to EPA for consideration as the agency, pursuant to a directive of President Obama, reconsiders the previous administration’s denial of a request by California for a waiver of federal preemption to enforce the state’s motor vehicle greenhouse gas emissions standards. In its comments, NACAA offered strong support for full approval of California’s waiver, citing EPA’s very narrow and deferential role under the Clean Air Act regarding consideration of a waiver request. Until and unless California receives a waiver for the GHG emissions standards, neither it nor the 14 other states that have adopted California’s program can enforce the standards. To view NACAA’s comments, click here.

Representatives Waxman and Markey Release Draft Climate Bill (March 31, 2009)
Representatives Henry Waxman (D-CA), Chairman of the House Energy and Commerce Committee, and Ed Markey (D-MA), Chairman of the House Select Committee on Energy Independence and Global Warming, released a _discussion draft_ of a comprehensive climate and energy bill entitled "The American Clean Energy and Security Act of 2009". The bill caps greenhouse gas (GHG) emissions from sources comprising approximately 85 percent of U.S. GHG emissions, reducing GHG emissions to 3 percent below 2005 levels in 2012, 20 percent below 2005 levels in 2020, 42 percent below 2005 levels in 2030 and 83 percent below 2005 levels in 2050. The bill sets a national renewable portfolio standard beginning at 6 percent in 2012 and climbing to 25 percent in 2025 and establishes a utility energy efficiency resource standard. It also promotes development and deployment of carbon capture sequestration technology and sets a GHG emission performance standard for new coal-fired power plants. The bill directs the President to set a national GHG emissions standard for new motor vehicles and the EPA Administrator to set GHG emissions standards for new heavy-duty vehicles and engines, new marine vehicle and locomotive engines and new aircraft engines. It also establishes a low carbon fuel standard. The bill protects the ability of states and "political subdivisions thereof" to cap GHG emissions, "require surrender to the State or a political subdivision thereof of emission allowances or offset credits established or issued under the Act, and require the use of such allowances or credits as a means of demonstrating compliance with requirements established by a State or political subdivision thereof". However, the bill provides that between 2012 and 2017, no state or political subdivision thereof may implement or enforce a cap on emissions from covered sources. With respect to the Clean Air Act, the bill provides that no GHG may be listed as a criteria pollutant or hazardous air pollutant "on the basis of its effect on climate change" and that the provisions of Title I Part C of the Act do not apply to a GHG "solely on the basis of its effect on climate change or regulation under Title VII or this title". Sources covered by the GHG cap that already have Title V permits would have their GHG emission limits written into the permits, but sources that do not already have Title V permits would not need to apply for a permit because of their GHG emissions.

New Report on Emission Control Areas for Global Shopping (March 30, 2009)
NACAA joined the Environmental Defense Fund, the American Lung Association and the Puget Sound Clean Air Agency to release a report documenting the impacts on human health of air pollution associated with global shipping, including container ships, cruise ships, tankers, and bulk carriers. In the report, the groups offer support for the U.S. government's action, taken March 30, 2009 (see related news item), to apply to the International Maritime Organization (IMO) for designation of U.S. coastal areas as an Emission Control Area (ECA). Oceangoing vessels traveling in an ECA would be subject to control requirements for NOx, SOx and PM emissions, Ninety percent of the ships that call on U.S. ports are foreign flagged. Researchers estimate that, each year, emissions from shipping pollution are associated with 60,000 deaths globally.

NACAA Testifies Before House Appropriations Subcommittee (March 26, 2009)
Bill Becker testified on behalf of NACAA before the House Appropriations Subcommittee on Interior, Environment, and Related Agencies regarding EPA’s FY 2010 budget. The hearing was held to obtain testimony from public witnesses, even though the details of the President’s FY 2010 budget request have not been released. Written testimony for the hearing was submitted to the Subcommittee on March 26, 2009. At the hearing, Bill provided information about NACAA’s newly released funding needs report. He related NACAA’s recommendation for an increase in Section 103/105 grants of $46 million above FY 2009 levels, for a total of $270 million.
 
NACAA Provides FY 2010 Appropriations Testimony to House (March 26, 2009)
NACAA has submitted testimony to the House Appropriations Subcommittee on Interior, Environment, and Related Agencies, which has jurisdiction over EPA’s budget, regarding FY 2010 appropriations. Even though the details of the President’s FY 2010 budget request have not been released, the Subcommittee requested written testimony at this time. NACAA included general recommendations in the testimony and will provide comments on specifics of the President’s budget when the details are announced. NACAA’s recommendations called for an increase in Section 103/105 grants of $46 million above FY 2009 levels, for a total of $270 million. Additionally, NACAA requested that the PM2.5 and lead monitoring programs remain under the authority of Section 103. Included in the testimony were preliminary results from NACAA’s survey of state and local agencies’ funding needs. According to the survey results, state and local agencies’ contributions are 77 percent of their budgets, while federal grants constitute only 23 percent, far different from the 60 percent federal and 40 percent state/local split envisioned by the Clean Air Act. Based on the survey, $1.3 billion is needed for state and local air programs. 60 percent of which is $778 million. Since federal grants have been between $200 million and $220 million in recent years, they should be increased by approximately $550 million to $575 million annually to meet state and local needs. In recognition of the current economic climate, NACAA is recommending far less. The association’s recommendation of a $46-million increase over FY 2009 levels is modest, considering the real needs.

NACAA Comments on EPA’s Proposed Program and Grant Guidance (March 19, 2009)
NACAA submitted comments to EPA on the agency’s Office of Air and Radiation Draft Fiscal Year 2010 National Program & Grant Guidance, dated February 18, 2009. The guidance is preliminary because the President has not announced the details of his proposed budget yet. NACAA noted that the association would like to provide additional input on the current or supplemental draft guidance after the details of the FY 2010 budget have been announced. NACAA emphasized the importance of Section 105 and 103 grants to state and local air agencies and the critical need for significant increases. Specifically, NACAA is recommending an increase of approximately $53 million above FY 2008 levels, for a total of $270 million. Among the specific comments NACAA provided are the following: EPA should not shift grants for the fine particulate matter monitoring program from Section 103 to Section 105 authority; Regional Planning Organizations should continue to receive at least $2.5 million; funds for the NOx/CAIR budget should come from EPA’s own funding, rather than air grants; EPA should provide training funds from its own budget to match the amount that state and local agencies will fund off-the top (just under $2 million); funding for the Diesel Emission Reduction Act programs should not come from the State and Tribal Assistance Grant account; and EPA should provide guidance in a timely manner.

President Signs FY 2009 Omnibus Appropriations Bill (March 11, 2009)
President Barack Obama signed the FY 2009 Omnibus Appropriations legislation that will fund the federal government through September 30, 2009. The Senate adopted the bill on March 10, 2009, one day before the expiration of the latest Continuing Resolution that continued funding for the federal government. The new law provides $224 million in state and local air grants under Sections 103 and 105 of the Clean Air Act, which is an increase of $7.2 million above FY 2008 and $39 million above the amount requested by the previous Administration in February 2008. Approximately $4 million of the Section 105 funds will support an energy permitting initiative described in the budget request. The law also calls for funding for the PM2.5 monitoring program to remain under Section 103 authority, rather than Section 105 authority. Additionally, it provides $60 million for Diesel Emission Reduction Act (DERA) grants; $15 million for California emission reduction project grants; $6.5 million in EPA’s budget for the greenhouse gas emissions reporting rule; $10 million (outside of Section 103/105 funding) for a new competitive grant program to assist local communities in establishing and implementing climate change initiatives; and a mandate that EPA act on the California greenhouse gas vehicle waiver by June 30, 2009. For appropriations information, see http://thomas.loc.gov/home/approp/app09.html.

NACAA Comments on EPA’s Area Source Proposal for Aluminum, Copper and Other Nonferrous Foundries (March 10, 2009)
NACAA submitted comments to EPA on the agency’s proposed National Emission Standards for Hazardous Air Pollutants: Area Source Standards for Aluminum, Copper, and Other Nonferrous Foundries, which were published in the Federal Register on February 9, 2009 (74 Federal Register 6510). NACAA indicated that state and local air agencies are already underfunded and would require additional resources to implement the Aluminum/Copper and other area source standards EPA will issue and has already promulgated. Additionally, NACAA noted that the final rule should result in real reductions in emissions, rather than just the compliance requirements (e.g., monitoring, testing and recordkeeping) that EPA admits would be the only real impacts associated with the proposed rule.

EPA Proposes Mandatory Rule for GHG Reporting (March 10, 2009)
EPA issued proposed mandatory reporting requirements for greenhouse gas (GHG) emissions. In general, EPA proposes that suppliers of fossil fuels or industrial GHGs, manufacturers of vehicles and engines, and facilities that emit 25,000 metric tons or more per year of GHG emissions submit annual reports to EPA. The gases covered by the proposed rule are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and other fluorinated gases including nitrogen trifluoride (NF3) and hydrofluorinated ethers (HFE). According to EPA, approximately 13,000 facilities, accounting for about 85 percent to 90 percent of GHGs emitted in the United States, would be covered under the proposal. The first annual report would be submitted to EPA in 2011 for the calendar year 2010, except for vehicle and engine manufacturers, which would begin reporting for model year 2011. EPA is proposing not to require third party verification of reports but rather rely on self-certification with EPA verification. Comments will be due 60 days after publication in the Federal Register. EPA will hold two public hearings on the proposal: one April 6 and 7, 2009, in the Washington, DC area and the other on April 16, 2009, in Sacramento, CA. EPA was directed to issue a mandatory GHG emissions reporting rule by the FY2008 Consolidated Appropriations Act.

NACAA Testified in Support of CA Waiver (March 5, 2009)
NACAA provided testimony  on March 5, 2009 at EPA’s public hearing on the reconsideration of the previous denial of a waiver of preemption for California’s motor vehicle emission standards for greenhouse gases (GHGs). In its testimony, the association reiterated its strong support for full and prompt approval of California’s waiver request, noting that EPA's role in considering a waiver request is narrow and deferential. Under the law, EPA must grant California's request for a waiver unless it can demonstrate that California acted arbitrarily and capriciously in adopting its regulations, that there is no longer a compelling and extraordinary need for California to maintain its own motor vehicle program or that California's regulations are not consistent with Section 202(a) of the CAA. In the case of California's GHG regulations, although none of these can be demonstrated, in March 2008, the previous administration, nonetheless, denied California’s request for a waiver. Since California adopted its GHG emission standards in September 2004, 14 other states have exercised their authority under Section 177 of the CAA to opt in to the program. Until and unless California receives a waiver of federal preemption for the GHG emission standards neither it nor the opt-in states can enforce the standards.

President Announces Budget for FY 2010 (February 26, 2009)
President Barack Obama announced the outline of the federal budget for FY 2010, which includes $10.5 billion for the Environmental Protection Agency. This represents a 34-percent increase over the amount that will likely be included in the FY 2009 omnibus legislation currently before Congress. While details about specific programs were not provided, the announcement stated that there will be an increase of $19 million for a greenhouse gas emission inventory and to work with industry to report emissions data. Additionally, the Administration will begin a comprehensive energy and climate change strategy that will include working with Congress to develop an economy-wide emissions reduction program that will result in reductions in greenhouse gas emissions of 14 percent below 2005 levels by 2020 and 83 percent below 2005 levels by 2050. The program will be a cap-and-trade system with a 100-percent auction. EPA’s budget also includes large increases for the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund.

DC Circuit Court Remands Fine Particle Standard to EPA for Reconsideration (February 24, 2009)
The U.S. Court of Appeals for the D.C. Circuit remanded the National Ambient Air Quality Standards (NAAQS) for fine particulate matter (PM2.5) to EPA for reconsideration of the annual level of the standard (which EPA left at 15 micrograms per cubic meter (µg/m3)) and reconsideration of the secondary PM2.5 NAAQS. With respect to the annual PM2.5 NAAQS, the court held that the agency “failed to explain adequately why an annual level of 15 µg/m3 is ‘requisite to protect the public health,’ including the health of vulnerable subpopulations, while providing ‘an adequate margin of safety.’ 42 U.S.C.§ 7409(b)(1).” For the secondary standards, the court held that EPA “unreasonably concluded that the NAAQS are adequate to protect the public welfare from adverse effects on visibility.” The court denied petitions for review of the primary daily standard for coarse PM and the petition for review of EPA’s revocation of the primary annual standard for coarse PM. Click here for the decision.

Supreme Court Declines to Consider Overturning CAMR Vacatur (February 23, 2009)
The U.S. Supreme Court decided that it would not consider an appeal of the vacatur of the Clean Air Mercury Rule, thereby ending the legal battles related to the controversial cap-and-trade rule that addressed emissions of mercury from electric utilities. The US Court of Appeals of the DC Circuit had vacated CAMR on February 8, 2008 in response to a legal challenge by a group of states and environmental organizations. Subsequently, EPA and the Utility Air Regulatory Group (UARG) – an industry organization – appealed to the Supreme Court for a review of the lower court’s decision. On February 6, 2009, the US Department of Justice asked the Supreme Court to dismiss the federal government’s appeal and stated that EPA had decided to “develop appropriate standards” that would regulate power plant emissions under Section 112 of the Clean Air Act. The Supreme Court’s decision that it would not reconsider the vacatur was in response to the UARG appeal, which had not been withdrawn. Click here to view the Supreme Court’s decision.

House Proposes FY 2009 Omnibus Appropriations Bill (February 23, 2009)
The House Appropriations Committee released its proposed FY 2009 omnibus legislation that would provide funding for a host of federal programs, including the U.S. Environmental Protection Agency, for which appropriations legislation had not been adopted by the start of the fiscal year on October 1, 2008. The House is expected to act on the bill this week and the Senate plans to take it up this week or next. The Continuing Resolution that has funded the federal government since October 1, 2008 expires on March 6, 2009. The House proposal calls for $224 million in state and local air grants under Sections 103 and 105 of the Clean Air Act. This is an increase of $7.2 million above FY 2008 and $39 million above the amount requested by President Bush in February 2008. Approximately $4 million of this amount would be set aside for an energy permitting initiative contained in the Administration’s budget request. The bill would maintain funding for the PM2.5 monitoring program under Section 103 authority, rather than shifting it to Section 105 authority, as the previous Administration proposed. The House proposal also includes $60 million for Diesel Emission Reduction Act (DERA) grants ($11 million above FY 2008); $15 million for California emission reduction project grants; $6.5 million from EPA’s budget for rulemaking (by June 26, 2009) and implementation of the greenhouse gas emissions reporting rule; and $10 million for a new competitive grant program to assist local communities in establishing and implementing climate change initiatives (this amount is NOT included in the Section 103/105 total mentioned previously). Details of the House’s proposal are available at www.rules.house.gov/111/legtext/111_omni2009_2.htm.

Senate Environment Committee Chairman Releases Principles for Global Warming Legislation; Vows to Move Climate Bill Out of Committee by December (February 3, 2009)
Senator Barbara Boxer (D-CA), chairman of the Senate Environment and Public Works Committee, released her principles for global warming legislation. The principles include that the legislation should “[e]nsure that state and local entities continue pioneering efforts to address global warming” and that revenues from the program should “[a]ssist states, localities and tribes in addressing and adapting to global warming impacts.” Boxer also announced her intention to move a climate bill out of her Committee before international climate talks scheduled for December 7-18, 2009, in Copenhagen, Denmark, at which it is hoped that countries will reach agreement on a binding treaty to reduce emissions. Her principles also include that the legislation should “[r]educe emissions to levels guided by science to avoid dangerous global warming,” set short and long term targets that are “certain and enforceable” but that can also be adjusted to reflect new science, establish a transparent and market-based system for efficiently reducing emissions, and ensure a level global playing field. In addition to the funds for states, localities and tribes mentioned above for adaptation, she outlined several other targets for the revenues expected to be generated by creating a carbon market. These include consumers, energy efficiency measures, clean energy technologies, assistance to business and communities in transitioning to a clean energy economy, efforts to preserve wildlife and natural resources threatened by global warming, and developing nations.

NACAA Writes President, Congressional Leaders on Stimulus Package (February 2, 2009)
NACAA sent letters to President Obama, House Speaker Pelosi and Senate Majority Leader Reid offering the associations’ perspectives on the American Recovery and Reinvestment Plan. In their letters, the association commends the President, Senate and House, respectively, for their efforts to address the economic crisis facing our nation, and supports the aim of saving and creating jobs, jumpstarting the economy and laying the foundation for recovery. NACAA applauds the inclusion in the Plan of measures to spur a clean energy economy. Further, although the association acknowledges the importance of rebuilding America’s roads and bridges and investing in infrastructure, we stress that it is critical that such investments ensure that projects enhance, not impede, environmental protection. In particular, NACAA encourages that the selection of road, bridge and other infrastructure projects to be funded under the Plan include a “green screen” process to ensure the stimulation of infrastructure projects that will enhance, rather than impede, protection of the environment and public health and welfare. Toward this end, NACAA recommends that once the Plan is adopted by Congress and signed into law, it be accompanied by an Executive Order to departments and agencies in the Administration directing that stimulus funds be disbursed based on criteria that are consistent not only with the President’s economic priorities, but also with his environmental priorities. Likewise, NACAA recommends that during forthcoming discussions of the stimulus bill, as well as congressional oversight of it once it is signed into law, Congress ensure that the disbursement of stimulus funds be based on criteria that are consistent with both economic and environmental priorities.

NACAA Comments on EPA’s Data Collection for Boiler MACT (January 29, 2009)
NACAA submitted a letter to EPA commenting on the agency’s efforts to collect data for the development of the MACT standard for Industrial Boilers and Process Heaters, which the agency has undertaken in response to the court’s vacatur of the original MACT standard. NACAA expressed disappointment that EPA had not involved the association in reviewing its data-collection plans and expressed concern that the deficiencies in EPA’s data set would result in an inferior MACT standard. Specifically, NACAA noted that EPA seems to be collecting data in a way that is intended to justify the creation of certain preconceived subcategories and recommended improvements to the data analysis before requesting source tests. Additionally, the data collection effort appears to be designed to determine the mean of the category, rather than the average of the top performing 12 percent, as the Clean Air Act requires. NACAA also emphasized the importance of collecting information on the variability of the emissions performance of the best-performing units, as well as additional data focusing on the best-performing 12 percent of sources. EPA is required to propose a Boiler MACT by July 15, 2009 and a final rule by July 15, 2010.

White House Directs Review of Recent Regulations (January 20-21, 2009)
White House Chief of Staff, Rahm Emanuel, issued a memorandum to the heads of executive departments and agencies requiring that regulations promulgated by the previous Administration be halted and reviewed. The memorandum states that, after noon on January 20, no proposed or final regulations should be sent to the Office of the Federal Register for publication unless they have been reviewed and approved by a department or agency head appointed or designated by President Obama. In addition, all proposed or final regulations that have not yet been published in the Federal Register must also be reviewed and approved by the new Administration. Furthermore, agency heads should “consider extending for 60 days the effective date of regulations that have been published in the Federal Register but not yet taken effect” to allow time to review questions of law and policy raised by the rule, according to the memorandum. The memorandum also states, “Where such an extension is made for this purpose, you should immediately reopen the notice-and-comment period for 30 days to allow interested parties to provide comments about issues of law and policy raised by those rules.” .” Another memorandum titled, “Implementation of Memorandum Concerning Regulatory Review” was issued on January 21 by the Director of the Office of Management and Budget, Peter R. Orszag. This memorandum sets forth the considerations that agencies should take into account in deciding whether to postpone the effective dates of rules, including whether the rulemaking process was procedurally adequate; whether the rule reflected due consideration of the agency’s statutory or other legal obligations; and whether the rule is based on a reasonable judgment about the legally relevant policy considerations.

House Releases Economic Stimulus Proposal with Funds for EPA (January 15, 2009)
The U.S. House of Representatives announced its version of the economic stimulus bill – the “American Recovery and Reinvestment Bill of 2009” – which includes $11 billion for EPA programs. Included in the $825-billion package is $300 million in grants and loans for activities related to the Diesel Emissions Reduction Act (DERA). According to statute, 70 percent of DERA funds are for nationwide competitive grants, while 30 percent will fund grants to states with approved programs. The stimulus package also includes $6 billion for the Clean Water State Revolving Fund; $2 billion for the Drinking Water State Revolving Fund; $1.5 billion for Rural Water and Waste Disposal; $800 million for Superfund Hazardous Waste Cleanup; $200 million for Leaking Underground Storage Tanks; $100 million for Brownfields; and $100 million for state and local grants to address Lead-Based Paint Hazards. The House is expected to consider the package over the next two weeks. The Senate and White House (Obama) versions have not yet been made available.

Environmental Groups Petition and Sue EPA for Improved Hazardous Air Pollution Regulations (January 14, 2009)
Earthjustice, the Natural Resources Defense Council and other environmental groups petitioned EPA to reopen over 30 Maximum Achievable Control Technology and Generally Available Control Technology standards that the groups claim are deficient. The petition specifically requests that EPA ensure that each rule includes emission standards for each listed hazardous air pollutant (HAP), complies with the Clean Air Act, and does not contain unlawful exemptions or the unlawful or invalid use of surrogates. The groups also asked the Administrator to delete all Startup, Shutdown and Malfunction exemptions from any air toxics-related regulation in which any such exemption appears. In a separate action, Earthjustice and the Sierra Club sued EPA in the U.S. District Court for the Northern District of California to compel EPA to comply with the Clean Air Act by issuing overdue standards to address residual risk and reviewing and revising as necessary previously adopted technology-based hazardous air pollution standards. The environmental groups listed 26 source categories that are overdue for residual risk standards and technology review, both of which were to take place eight years after promulgation of the original standard. To view the petition and lawsuit, click here and here.

EPA States that Electric Utilities are Subject to Section 112(g) Case-by-Case MACT (January 14, 2009)
EPA issued a memorandum on January 7, 2009 stating that, because the court vacated the Clean Air Mercury Rule (CAMR), coal- and oil-fired electric utility steam generating units are subject to Section 112(g), which prohibits a major source of hazardous air pollutants from beginning construction or reconstruction without a permit containing MACT requirements determined on a case-by-case basis. The memo, written by Robert Meyers, Principal Deputy Assistant Administrator of the EPA Office of Air and Radiation, goes on to say that EPA believes that the controls in place at affected facilities (those that began construction between the issuance of CAMR in March 2005 and the vacatur in March 2008) “may be sufficient to support a determination under section 112(g) that emissions will be controlled to a level no less stringent than MACT for new sources.” However, the permitting authorities must make this determination based on available information. With respect to projects that have already begun, the memorandum notes that the prior issuance of permits or other administrative processes (i.e., actions short of actual physical construction) should not necessarily mean that MACT options have been foreclosed and cannot be undertaken.

EPA Promulgates Flexible Permit Rule (January 13, 2009)
EPA finalized its proposed rule titled “Operating Permit Programs; Flexible Air Permitting Rule".  EPA abandoned its New Source Review program that would have allowed advance-approved “Green Groups,” which NACAA had strongly opposed.  With regard to Title V, the agency promulgated definitions for “Alternative Operating Scenarios (AOSs),” and “Approved Replicable Methodologies (ARMs),” both of which NACAA had also opposed on the grounds that these flexibilities are already provided for in Part 70.  EPA stated, however, that these revisions are intended “to clarify and reaffirm opportunities for accessing operational flexibility under existing regulations.”

EPA Promulgates Aggregation Interpretation, Withdraws Debottlenecking, and Puts Project Netting on Hold (January 12, 2009)
EPA has finalized its proposed rule titled, “Debottlenecking, Aggregation, and Project Netting.” The agency dropped the Debottlenecking proposal, interpreted the concept of “Aggregation” without  promulgating new regulatory language, and stated that Project Netting  will remain unchanged.  With regard to Aggregation, EPA took a different approach than that proposed on September 14, 2006.  Rather than promulgating a new regulatory definition of “Aggregation,” the agency retained the current rule text but interpreted the relevant text to mean that “activities should be aggregated for the purposes of the NSR applicability determination only in cases where there is a substantial relationship among the activities, either from a technical or an economic standpoint.”  NACAA’s comments recommended certain specific tests for determining whether projects should be aggregated, but EPA adopted neither the tests or our strong recommendation that sources should be subject to record-keeping and reporting requirements. 

Court Remands CAIR to EPA Without Vacatur; No Deadline Imposed for EPA Rulemaking (December 23, 2008)
The U.S. Court of Appeals for the D.C. Circuit decided to remand without vacatur the Clean Air Interstate Rule (CAIR) to EPA to “remedy CAIR’s flaws in accordance with our July 11, 2008 opinion in this case,” allowing CAIR to remain in effect until replaced by a rule consistent with the court’s opinion. While some parties (including North Carolina) had recommended the court impose a deadline by which EPA must act, the court turned down this suggestion. However, the court said petitioners may bring a mandamus petition to the court in the event that EPA fails to modify CAIR in a manner consistent with its July 11, 2008, opinion. The court granted EPA’s petition for rehearing only to the extent the agency sought a remand without vacatur; the rest of its opinion stands. Judge Rogers in her concurring opinion noted the “persuasive demonstration” by the states and other parties that vacating the rule would “sacrifice clear benefits to public health and the environment.” Click here for the court opinion.

NACAA Comments on Petroleum Refineries Residual Risk and Technology Review Supplemental Proposal (December 23, 2008)
NACAA submitted comments on EPA’s supplemental proposed standards to address emissions of hazardous air pollutants from petroleum refineries. The proposal, which was published in the Federal Register on November 10, 2008 (73 Federal Register 66694), was issued pursuant to Section 112(f) (Residual Risk), which calls for EPA to assess the risks from source categories that exist after the imposition of MACT and issue standards to address those risks. Additionally, EPA is required to review the MACT standards every eight years and issue an update, if appropriate. EPA first proposed Residual Risk and Technology Review standards for petroleum refineries on September 4, 2007, on which NACAA commented (in a letter dated December 20, 2007). After reviewing the comments, EPA issued the supplemental proposal on November 10, 2008, which includes additional provisions to address storage vessels and cooling towers. NACAA’s letter primarily reinforced the association’s previous concerns related to the risk assessment methodology and data on which the proposal was based. Further, NACAA expressed disappointment that EPA had not eliminated the no-control option from the proposal. Finally, NACAA recommended improvements to cooling tower provisions contained in the proposal.

NACAA Presents Recommendations to the Obama Administration on Clean Air Issues (December 16, 2008)
NACAA transmitted 16 recommendations to the new administration for improving air quality, Change Is in the Air. The recommendations focus on tackling global warming, pursuing important regulatory and statutory initiatives, rescinding/reversing ill-advised regulatory and policy actions and increasing financial and technical assistance to state and local air agencies. NACAA also urges that the Obama Administration include among its top priorities the reestablishment of a truly cooperative and functional partnership with state and local air pollution control agencies. Click here for the transmittal letter and here for the recommendations (Change Is in the Air).

EPA Abandons Proposals on NSR EGU Hourly Test and PSD Increment Modeling (December 10, 2008)
EPA announced that it is dropping its plan to change the New Source Review (NSR) program by allowing utility electric generating units (EGUs) to make modifications without installing pollution controls. The so-called “EGU Hourly Test” advocated by the agency would have made increases in an EGU’s maximum hourly emissions rate—rather than actual, annual emissions—the trigger for NSR. EPA had originally proposed the rule in October 2005, had issued a “Supplemental Notice” elaborating on its rationale for the proposal on May 8, 2007. NACAA had opposed the proposal in comments and testimony since its inception in 2005. Most recently, on October 16, 2008, NACAA had sent a letter to EPA stating that the situation that would have been created by the rule—increases in actual emissions, no modeling of impacts on ambient air, and no review by state and local permitting authorities—was considerably worsened with the vacatur of the Clean Air Interstate Rule. The agency also announced that it was abandoning a proposal to change modeling methodologies for determining compliance with clean air increments under the Prevention of Significant Deterioration (PSD) program, and evaluating the impacts on ambient air quality of new facilities in Class I areas, such as national parks. The rule, titled, “PSD: Refinement of Increment Modeling Procedure,” had been opposed by environmental groups and others on the grounds that the changes proposed could have allowed new coal-fired power plants to be located near national parks.

NACAA Files Comments Supporting Regulation of GHG Emissions Under the Clean Air Act (November 26, 2008)
NACAA filed comments on EPA’s Advance Notice of Proposed Rulemaking on Regulating Greenhouse Gas (GHG) Emissions Under the Clean Air Act supporting the use of appropriate regulatory authorities to address the urgent problem of global warming. NACAA’s comments note that there are several Clean Air Act authorities that the association “believes firmly can be usefully and thoughtfully deployed: New Source Performance Standards, mobile source provisions and permitting requirements.” The association supports the Congressional enactment of a mandatory economy-wide GHG emission reduction program with quantifiable and enforceable limits that reduces U.S. GHG emissions substantially below current levels in order to lessen dangerous anthropogenic interference with the climate. However, it will take several years before such legislation is enacted and implemented, and existing regulatory tools under the Act allow for the implementation of programs that can serve as a bridge to future climate legislation, will inform Congress as it considers this legislation and will complement the enacted law. The comments 1) support a finding by EPA that GHGs endanger public health and welfare; 2) do not support setting a GHG National Ambient Air Quality Standard; 3) support setting GHG New Source Performance Standards; and 4) support setting mobile source GHG emission standards. With respect to permitting, the comments note that the association believes EPA has the discretion to limit permitting requirements to large sources of GHG emissions and recommends that EPA not impose mandatory permitting requirements on smaller sources.

NACAA Comments on Residual Risk Proposal (November 24, 2008)
NACAA has submitted comments on EPA’s proposed Residual Risk standards for nine industrial source categories. The proposal, which was published in the Federal Register on October 10, 2008 (73 Federal Register 60432), called for no additional reductions from the source categories. NACAA’s draft comments raise concerns about the risk assessment methodology that EPA used in developing the proposal, including EPA’s calculation of risk at the centroid of the census block, instead of at the property lines; the agency’s use of actual instead of allowable emissions; reliance on Acute Exposure Guideline Levels to address acute exposures in the residual risk assessments; and the failure to use the Integrated Risk Information System values to address chronic risks from formaldehyde. The source categories covered by the proposal are Group I Polymers and Resins (Epichlorohydrin Elastomers Production, Hypalon™ Production, Nitrile Butadiene Rubber Production, Polybutadiene Rubber Production, and Styrene Butadiene Rubber and Latex Production); Marine Vessel Loading Operations; Mineral Wool Production; Pharmaceuticals Production; and Printing and Publishing Industry.

President-Elect Obama Emphasizes Importance of EPA and Need for Increased Funding (November 10, 2008)
President-elect Barack Obama sent a letter to the American Federation of Government Employees in which he expressed the importance of EPA’s mission to his administration and his intention to pursue increased funding for the agency. He noted that EPA’s goals have been jeopardized during the last eight years due to “failed leadership”, “inadequate funding” and “the ineffective allocation of resources”. These factors have undermined enforcement and oversight, despite the commitment of EPA’s career staff. Additionally, Obama expressed his support for scientific integrity and his opposition to attempts to eliminate EPA’s libraries and “thwart publication of EPA researchers’ scientific findings.”

NACAA Comments on Chemical Manufacturing Area Source Proposal (November 5, 2008)
NACAA submitted comments on EPA’s proposed air toxics standards for Chemical Manufacturing Area Sources, which were published in the Federal Register on October 6, 2008 (73 Federal Register 58352). NACAA expressed support for effective regulations to reduce emissions of hazardous air pollutants from area sources, because the adverse effects of the emissions from these sources in the aggregate are significant and should be ameliorated. However, in order for the area rules to be implemented properly, EPA should provide sufficient additional funds, above and beyond what is currently provided, for state and local air agencies to carry out this work. NACAA also recommended that the final rule require a formal leak detection and repair program using a volatile organic compound instrument detector for quarterly leak inspections on all process vents.

Administration Petitions Supreme Court to Consider Appeal of CAMR Vacatur (October 17, 2008)
The U.S. Department of Justice filed an appeal with the U.S. Supreme Court asking that the court overturn the U.S. Court of Appeals of the D.C. Circuit’s vacatur of the Clean Air Mercury Rule (CAMR). On February 8, 2008, the Court of Appeals vacated CAMR and subsequently denied the request of the Administration and industry groups for a rehearing. The Administration requested and received two extensions to the deadline for submitting an appeal to the Supreme Court before submitting the petition last week. In the meantime, the Utility Air Regulatory Group (UARG), an industry organization, also appealed to the Supreme Court to overturn the CAMR vacatur. If the Court decides to hear the case, it is likely the EPA and UARG appeals will be consolidated. Click here to view the Administration’s appeal.

NACAA Urges EPA to Withdraw New Source Review “EGU Hourly” Proposal (October 16, 2008)
NACAA wrote a letter to the rulemaking docket, copying the relevant OAQPS managers, recommending strongly that the proposed rulemaking: “Prevention of Significant Deterioration, Nonattainment New Source Review (NSR), and New Source Performance Standards: Emissions Test for Electric Generating Units” be withdrawn. The letter stated that, if finalized, the rule will allow increases in annual emissions to occur without installation of air pollution controls or modeling of air quality impacts. Therefore, the letter notes, Class I areas are likely to be degraded, Prevention of Significant Deterioration increments are likely to be violated, and national ambient air quality standards violated—all of which “will be discovered after the fact, if at all, rather than reviewed and mitigated prior to their occurrence.” The impetus of the letter was the CAIR vacatur by the D.C. Circuit in August. The letter pointed out that CAIR emissions reductions were the main rationale for allowing increases in uncontrolled emissions from the utility sector. Now that CAIR has been vacated, no justification whatsoever remains for the EGU Hourly proposal, necessitating withdrawal of the proposed rule. For further information, please click here.

House Energy and Commerce Committee Releases “Discussion Draft” of GHG Legislation (October 7, 2008)
The House Energy and Commerce Committee released a “discussion draft” bill to regulate greenhouse gas (GHG) emissions in the U.S. through an amendment to the Clean Air Act that establishes a cap-and-trade program covering approximately 88 percent of US GHG emissions. The bill would reduce GHG emissions to six percent below 2005 levels by 2020, 44 percent below 2005 levels by 2030 and 80 percent below 2005 levels by 2050. Regarding stationary sources, the bill prohibits any state, local or regional authority from adopting or enforcing a GHG cap-and-trade program, but preserves other state, local and regional authorities. The bill also contains several options for regulation of GHG emissions from motor vehicles. With respect to state authority, one option is to direct EPA to grant California the waiver needed to enforce its GHG emission standards, which would also permit other states to opt into the California standard, and the other option preempts state regulation of GHG emissions from motor vehicles. There are three options with respect to federal regulation of GHG emissions from motor vehicles, including a prohibition on EPA from regulating motor vehicle tailpipe emissions. With respect to allowances, the bill contains four options for allocating allowances that differ in the amount of allowance value given to covered sectors, other programs for reducing GHG emissions, adaptation and consumers. All allowance allocation options expire in 2026, and at that point all allowances are auctioned and proceeds distributed to citizens, with the view that Congress would reauthorize the bill by that time. Power plants are covered by the cap-and-trade program, but in addition new coal-fired power plants are subject to a performance standard beginning in 2025 that would require capture and geological sequestration of not less than 60 percent of emissions. The bill would prohibit National Ambient Air Quality Standards from being set for GHGs as well as excluding GHGs from the provisions of Title I, Part C of the Clean Air Act (PSD/NSR). The bill also contains provisions for managing costs and spurring energy efficiency.

EPA Drafts Document Highlighting Proposed Changes to 2009-2014 Strategic Plan (October 6, 2008)
EPA has prepared a document highlighting proposed changes to the agency’s 2009-2014 Strategic Plan and has made it available for comment. The 2009-2014 Strategic Plan Document focuses on targeted areas where EPA believes the most significant improvements to the agency’s strategies and measurements of performance are possible. Included in the changes are a provision related to the utility of air research and a note that the strategic plan must change to reflect the uncertainty associated with the implementation of the Clean Air Interstate Rule. EPA will accept comments on the document until November 30, 2008. The document is available on EPA’s website at www.epa.gov/ocfo/plan/plan.htm.

NACAA Urges President to Sign Mercury Export Ban (October 2, 2008)
NACAA wrote a letter to President George W. Bush requesting that he sign the Mercury Export Ban Act of 2008 (S. 906), which Congress adopted overwhelmingly on September 29, 2008. The bill, which had bipartisan sponsorship and support, would prohibit the federal government or private entities from exporting elemental mercury from the United States. The ban contained in the Mercury Export Ban Act would go into effect for federal agencies as of December 31, 2009 and for others in the United States as of January 1, 2013. The bill also establishes a long-term storage plan for mercury, calling upon the Secretary of Energy to identify storage facilities by 2010 where surplus mercury can be stored. The bill includes an essential-use exemption that allows the exportation of mercury in certain limited situations, including cases in which there is no non-mercury alternative and the mercury will be used in a safe manner. The Quicksilver Caucus, a multi-association organization including the Environmental Council of the States and environmental media associations, including NACAA, supported the bill during its consideration by Congress. On September 25, 2008, the European Union also agreed to a ban on mercury exports, effective March 2011. The intent of the U.S. and European measures is to reduce the use of mercury in the developing world. For more information about S. 906, see http://thomas.loc.gov/cgi-bin/bdquery/z?d110:S.906:.

President Signs Continuing Resolution until March 6, 2009 (September 30, 2008)
President Bush signed a bill that Congress approved last week that provides continued funding for the federal government until March 6, 2009. The bill is necessary because most of the individual appropriations bills that would fund government operations after the start of the new fiscal year on October 1, 2008, including EPA activities, have not been adopted. For the most part, the Continuing Resolution (CR) continues funding at FY 2008 levels, which is $216.8 million in Section 105 and 103 grants for state and local air agencies and $49.2 million for Diesel Emission Reduction Act activities. The CR includes a $25-billion loan program under the Department of Energy’s budget for the “Advanced Technology Vehicles Manufacturing Loan Program Account”, $7.5 billion of which will be the government’s share of the effort (meant to cover any risks of default on the loan). The program will provide loans to automakers to update their facilities to manufacture more fuel-efficient vehicles. The CR, which was part of S. 2638, was included in a package that also contained the FY 2009 Military Construction and Veterans Affairs, Defense, and Homeland Security appropriations bills and a disaster relief package. It is unclear at this time whether Congress will go back and consider individual appropriations bills for FY 2009. See http://thomas.loc.gov/home/approp/app09.html for details about the appropriations process.

EPA Issues Final Small Nonroad Engine Rule (September 4, 2008)
The EPA Administrator signed a final rule setting new emission standards for small spark-ignition (gasoline-powered) nonroad engines and equipment, including marine engines and vessels. According to EPA, for 10 categories of nonroad engines (such as lawn and garden equipment and airport service equipment), the new standards – which will take effect in 2011 or 2012 (based on engine size) – will reduce hydrocarbon emissions by about 35 percent; new standards to reduce evaporative emissions from the fuel systems of these engines are included as well. For marine spark-ignition engines, EPA reports that the new standards – to take effect with the 2010 model year – will reduce hydrocarbon, nitrogen oxide and carbon monoxide emissions, as well as fuel system evaporative emissions. The new standards are also expected to reduce the harmful health impacts from ozone and carbon monoxide levels associated with all affected engines and equipment. EPA has indicated that the final rule also includes technical amendments for a wide range of engines and vehicles covered by EPA standards. For further information, go to EPA’s web site at http://www.epa.gov/otaq/equip-ld.htm.

EPA Issues Designation Recommendations for 24-hour PM2.5 Standard (August 19, 2008)
EPA issued its _recommendations_ for which areas should be designated in nonattainment with the 24-hour fine particulate matter (PM2.5) standard that EPA promulgated in 2006. EPA recommended that 169 whole counties and 46 partial counties in 25 states be designated nonattainment. EPA will provide the public with a 30-day opportunity to comment on the Agency's proposed modifications to the state and tribal recommendations. States and tribes provided their initial designation recommendations in December 2007 based on the most recent three years of air quality monitoring data (generally 2004 to 2006). EPA plans to make final designations in December 2008 using air quality monitoring data from 2005, 2006 and 2007.

NACAA Submits Comments on EPA’s Lead NAAQS Proposal (July 30, 2008)
NACAA submitted comments on EPA’s proposal for revising the lead National Ambient Air Quality Standards (NAAQS), supporting a significant strengthening of the standard. NACAA’s comments also address monitoring, funding and implementation issues.

EPA Issues ANPR to Regulating GHGs (July 11, 2008)
The U.S, EPA has released an Advance Notice of Proposed Rulemaking (ANPR) inviting public comment on the benefits and ramifications of regulating greenhouse gases (GHGs) under the Clean Air Act (CAA). The ANPR was issued in response to the U.S. Supreme Court’s decision in Massachusetts v. EPA that found that the Clean Air Act authorizes EPA to regulate tailpipe greenhouse gas emissions if EPA determines those emissions cause or contribute to air pollution that may reasonably be anticipated to endanger public health or welfare. EPA will accept public comments for 120 days after publication in the Federal Register.

D.C. Court Vacates CAIR Entirely (July 11, 2008)
The U.S. Court of Appeals for the District of Columbia Circuit in considering petitions for review challenging various aspects of the Clean Air Interstate Rule, has found “more than several fatal flaws in the rule and the Environmental Protection Agency (“EPA”) adopted the rule as one, integral action, we vacate the rule in its entirety and remand to EPA to promulgate a rule that is consistent with this opinion.” Click here to view the document.

NACAA Posts Data Related to Boiler Model Permit Guidance (June 27, 2008)
NACAA published Reducing Hazardous Air Pollutants from Industrial Boilers: Model Permit Guidance on June 10, 2008. In order to develop the document, the association collected data from state and local air agencies related to emissions from industrial commercial and institutional boilers and process heaters. The data have been made publicly available and have been posted on NACAA’s website. See “Our Projects” to access the data.

NACAA Publishes Model Permit Guidance for Industrial Boilers (June 10, 2008)
NACAA has developed Reducing Hazardous Air Pollutants from Industrial Boilers: Model Permit Guidance, which is intended to provide state and local air pollution control agencies with important tools for regulating hazardous air pollution from the approximately 3,000 industrial, commercial and institutional boilers and process heaters (ICI Boilers), located at refineries, paper mills, manufacturing plants and other facilities in every state in the country. EPA’s Maximum Achievable Control Technology (MACT) rule for ICI Boilers was struck down by the court in June 2007. Pursuant to Section 112(j) of the Clean Air Act (the “MACT hammer”), because there is not a federal rule in place regulating the source category, state and local agencies are required to set the limits for the affected facilities on a case-by-case basis. These limits must be equivalent to those that would have applied to the source had EPA promulgated a MACT standard consistent with the Act. Because of the potentially significant workload associated with developing MACT limits on a case-by-case basis for the large number of affected sources, and the short deadlines imposed by the CAA for state and local actions, NACAA decided to develop this Permit Guidance. The association collected and analyzed extensive emissions data relating to ICI Boilers and developed a set of recommendations for MACT. Additionally, NACAA reviewed the technologies and included information about technologies and costs in the document. To view NACAA’s press release announcing the document, click here. To view the Institute of Clean Air Companies’ press release endorsing the model permit guidance, click here.

NACAA Issues Global Warming Conference Proceedings (June 6, 2008)
NACAA has completed its compilation of the proceedings from the association’s February 2008 conference on Defining the Role of States and Localities in Federal Global Warming Legislation. To view the proceedings, click here. The purpose of the two-day conference was to bring together experienced air regulators and interested colleagues to brainstorm concepts and ideas related to the role states and localities can and should play in federal climate change legislation and programs to combat global warming – including roles states and localities already fulfill for existing programs, as well as potential new roles. Unlike many other conferences, where participants listen to a series of speakers, at this conference the focus was on the participants. The goal of the conference was for participants to engage in dynamic, interactive dialogue with their counterparts from across the nation on the likely and appropriate roles of states and localities in the context of federal climate change legislation. In addition to talking with key congressional staff members, who provided an overview of major legislative climate change proposals and described opportunities for states and localities to inform these proposals, participants focused on four issues of major relevance to states and localities, as framed by the four thought-provoking discussion papers, which NACAA had provided in advance of the conference: 1) Preserving the right of states and localities to set more stringent greenhouse gas (GHG) reduction requirements, 2) the role states and localities can play in implementing a federal GHG reduction program, 3) the role states and localities can play in a federal allowance program and in determining how funding is distributed and 4) the role of states and localities in data management under a federal climate change program. The discussion papers are available at www.4cleanair.org/documents/GWConferenceMaterials.pdf.

NACAA Requests the Repromulgation of Part 75 Mercury Monitoring Provisions (June 2, 2008)
NACAA has sent a letter to EPA requesting that the agency reinstate the mercury monitoring provisions from 40 CFR Part 75 and associated test Methods 30A and 30B from 40 CFR Part 60, Appendix A that were vacated by the U.S. Court of Appeals of the DC Circuit on February 8, 2008 (as part of the CAMR vacatur).

NACAA Sends Letter to Senate on States’ Rights Provisions of Boxer-Lieberman-Warner Substitute to Climate Security Act (May 29, 2008)
NACAA transmitted a letter to Senators Boxer, Lieberman and Warner (with copies to all members of the Senate), commending them for offering the Boxer-Lieberman-Warner Substitute to the Climate Security Act, noting the consistency of the bill with many of NACAA's Global Warming Principles and expressing appreciation for their inclusion in the bill of language to preserve the rights of states and localities to develop standards, limitations, prohibitions, requirements or caps beyond the federal program. On Monday, June 2, 2008, the Senate will take up this substitute amendment.

Boxer, Lieberman, Warner Release Substitute Climate Change Bill (May 21, 2008)
Senate Environment and Public Works Committee Chairwoman Barbara Boxer (D-CA) and Senators Joe Lieberman (I-CT) and John Warner (R-VA) released a substitute amendment to the S. 2191, the Lieberman-Warner climate change bill introduced last year – America’s Climate Security Act of 2007. The bill as amended is titled the Lieberman-Warner Climate Security Act of 2008. To view the bill, click here. To view a summary, click here.

Court Denies EPA and Industry’s Requests for Rehearing on CAMR Vacatur (May 20, 2008)
The U.S. Court of Appeals for the DC Circuit has denied requests by EPA and the Utility Air Regulatory Group for a rehearing on the court’s February 8, 2008 decision to vacate the Clean Air Mercury Rule (CAMR). This denial means the order to vacate CAMR, which the court issued officially on March 14, 2008, remains in effect.

NACAA Submits Comments on EPA and OMB’s Proposed ICR for Section 112(j) (May 15, 2008)
NACAA has submitted comments on EPA’s and the Office of Management and Budget’s (OMB’s) proposed Information Collection Request (ICR), which was published in the Federal Register on April 17, 2008 (73 FR 20920). The ICR process is to gain approval for the Part 1 and Part 2 permit applications for the MACT Hammer provisions of Section 112(j) for Polyvinyl Chloride, Brick and Clay and Industrial Boiler MACT sources (all three MACTS were previously vacated by the court). NACAA submitted similar comments on the proposed ICR on January 2, 2008. At this time, EPA has submitted the ICR to OMB for approval and is providing another opportunity for public comment. NACAA’s comments primarily reiterate the points the association made in the past and resubmit the earlier comment letter. [For further information: Air Web – Top Headlines and Air Toxics Committee Page]

EPA Issues National Program and Grant Guidance for FY 2009 (May 5, 2009)
EPA has issued the FY 2009 National Program Manager (OAR) Technical and Grant Guidance, which contains the agency’s proposed allocation of state and local air grants (Sections 103 and 105) among programs and regions. The guidance is based on the President’s request for FY 2009, which is $185.6 million for state and local air grants. The guidance document is very similar to the draft that EPA released in February 2008, on which NACAA commented on April 1, 2008. It includes the elimination of funding for the Regional Planning Organizations and for the Great Lakes Air Toxics monitoring program and a reduction for the US-Mexico Border program. The funds formerly directed to those efforts would be used to support a new $3.9 million “Air Quality and Energy Development” initiative focused on “early and effective collaboration on energy development activities and projects.” Additionally, the guidance reflects EPA’s position that decreased funds are needed for activities related to four pollutants – carbon monoxide, nitrogen dioxide, sulfur dioxide and lead – based on the assumption that less activity is necessary than in the past to address those pollutants. Depending on Congressional action on the FY 2009 budget, the final amount appropriated to state and local air agencies may change. This would require EPA to alter the guidance and allocation accordingly.

">EPA Proposes Tightening Ambient Lead Standard (May 1, 2008)
EPA proposed revising the National Ambient Air Quality Standard for lead, calling for a primary (health) standard of between 0.10 and 0.30 micrograms per cubic meter (µg/m3), measured as total suspended particulates. EPA is also taking comment on alternative levels from less than 0.20 to 0.50 µg/m3. The proposed secondary (welfare) standard is identical to the primary standard. EPA is considering revisions to the averaging time and form of the standard, ranging from retaining the current quarterly averaging time but evaluating attainment using three years of data, to adopting a monthly averaging time and using the second highest monthly average over a three-year period to determine attainment. EPA estimates that at 0.30 µg/m3, 12 counties will violate the standard, while at 0.10 µg/m3, 23 counties will be in violation. The announcement of the proposal complies with a court-ordered deadline requiring EPA to propose a standard by May 1, 2008; EPA must issue a final standard by September 15, 2008. EPA last established a lead standard in 1978, setting the current limit of 1.5 µg/m3 with a quarterly averaging time. EPA staff and the Clean Air Scientific Advisory Committee had recommended revising the primary lead standard to 0.2 µg/m3 or less with a monthly averaging time and establishing a secondary standard at the same level. Following publication of the proposal in the Federal Register – expected within the next few weeks – there will be public hearings in Baltimore, Maryland and Saint Louis, Missouri on June 12, 2008 and a 60-day comment period. For additional information, see www.epa.gov/air/lead/actions.html.

NACAA Provides Testimony to Senate on EPA’s FY 2009 Budget (April 10, 2008)
NACAA submitted written testimony to the Senate Appropriations Subcommittee on Interior, Environment, and Related Agencies regarding the President’s FY 2009 budget request. Unlike the corresponding House subcommittee, the Senate subcommittee does not hold hearings for public witnesses and only accepts written testimony. Bill Becker had testified before the House subcommittee on March 13, 2008. NACAA’s testimony before both chambers requested additional grant funding for state and local air agencies under Sections 103 and 105 of the Clean Air Act. Specifically NACAA recommended that grants be increased by $84.7 million above the President’s request, for a total of $270.3 million, which would be a restoration of the $31.2 million cut contained in the President’s request, along with an increase of $53.5 million to support continuing and new activities. NACAA also supported an appropriation of $70 million for activities under the Diesel Emission Reduction Act. Finally, NACAA expressed concern that EPA has earmarked grant funds for specific purposes without obtaining state and local air agency concurrence.

NACAA Comments on EPA’s Draft FY 2008 National Program and Grant Guidance for FY 2008 (April 1, 2008)
NACAA provided EPA with comments on the Office of Air and Radiation’s National Program and Grant Guidance. This guidance pertains to the President’s budget request for FY 2009, which proposes to reduce funding for state and local air quality grants by $31.2 million from FY 2008 levels (from$216.8 million to $185.6 million). The draft guidance is available on EPA’s webpage at: www.epa.gov/ocfo/npmguidance/index.htm (scroll down to “FY 2009 NPM Guidance”). In the comment letter, NACAA expressed disappointment that the President’s budget request called for significant cuts to Sections 103 and 105 grants and described some of the difficulties such reductions will present for state and local air agencies. Additionally, NACAA opposed EPA’s intention to target the reductions on the incorrect premise that state and local air agencies have completed work related to four specific pollutants. Among other things, the association recommended that Regional Planning Organizations receive $2.5 million in FY 2009, rather than eliminating their funding; that EPA not earmark funds for new special projects without obtaining concurrence from state and local air agencies; and that EPA provide continuing funds for training activities.

NACAA Comments Opposing Exemption from CERCLA/EPCRA for Releases from Animal Waste Emissions (March 27, 2008)
NACAA filed comments opposing EPA's proposed rule to exempt from the reporting requirements of CERCLA and EPCRA emissions releases from animal wastes. The association urged EPA to rescind the proposed rule, listing six reasons that it should not be promulgated. The letter states, "[w] e do not believe a blanket exemption is warranted given the demonstrated health effects associated with ammonia and hydrogen sulfide, the amounts of manure produced by CAFOs, and the usefulness of the data contained in CERCLA and EPCRA reports to state and local agencies and the people living near these facilities."

NACAA Testifies in the House on EPA’s FY 2009 Budget (March 13, 2008)
NACAA Executive Director Bill Becker testified on behalf of the association before the House Appropriations Subcommittee on Interior, Environment, and Related Agencies regarding the President’s FY 2009 budget request. NACAA’s testimony focused specifically on the need for additional grant funding for state and local air agencies under Sections 103 and 105 of the Clean Air Act. NACAA is recommending that grants be increased by $84.7 million above the President’s request, for a total of $270.3 million. This would be a restoration of the $31.2 million cut contained in the President’s request, along with an increase of $53.5 million to support ongoing and new activities. NACAA also expressed support for $70 million for activities under the Diesel Emission Reduction Act. Finally, NACAA expressed concern that EPA has earmarked grant funds for specific purposes without the concurrence of state and local air agencies. Other witnesses at the hearing also mentioned the need for increases in state and local air grants, including representatives of the American Lung Association, the American Thoracic Society, and the Emissions Control Technology Association. [For further information: Air Web – Top Headlines and Program Funding Committee page]

EPA Revises Ozone Standards, Urges “Overhaul” of Clean Air Act to Allow Cost Considerations in NAAQS (March 12, 2008)
EPA tightened the National Ambient Air Quality Standard for 8-hour ozone to 0.075 parts per million, setting the secondary standard at an identical level. Although the new standards are tighter than the current level of 0.084 parts per million (ppm), EPA did not set them at the levels recommended by EPA’s Congressionally-chartered independent science advisors, the Clean Air Scientific Advisory Committee (CASAC), which had unanimously advocated that the ozone standard be no greater than 0.070 ppm. NACAA had supported CASAC’s recommendation that the standard be set in the range of 0.060 to 0.070, and had also advocated a distinct, cumulative seasonal secondary standard. Sharply departing from the statutory mandate of the current Clean Air Act, the EPA Administrator, Stephen L. Johnson, also announced his intent to “overhaul” the Act by allowing costs to be considered in the standard-setting process. In the context of the current ozone NAAQS revisions, and in the 2006 PM NAAQS revisions, NACAA has consistently opposed mixing implementation issues, such as costs, into rules setting the health-based standard. With regard to monitoring issues, EPA’s rule continues to exempt from federal ozone monitoring requirements cities having 350,000 people and below. The Air Quality Index (AQI) was updated to reflect the change in the health standard as a part of the ozone NAAQS revision. Details on the revised standards can be found at http://www.epa.gov/groundlevelozone/actions.html. Information on the new AQI can be found at www.airnow.gov

NACAA Comments on Category 3 Marine Engine ANPRM (March 5 2008)
March 5, 2008 - NACAA submitted comments to EPA on the agency’s December 7, 2007 Advance Notice of Proposed Rulemaking (ANPRM) for the Control of Emissions from New Marine Compression-Ignition Engines at or Above 30 Liters per Cylinder. NACAA supports promulgation of a federal regulation that will impose tough emission standards for C3 engines and requirements for cleaner-burning, low-sulfur fuel. The association indicates in its comments that the regulatory components set forth in EPA’s ANPRM serve as a firm foundation for such a federal rule. However, NACAA urges EPA to commit to firm implementation dates – 2011 for the new-engine Tier 2 NOx, PM and SOx standards and alternative PM/SOx fuel-standard compliance approach, 2012 for retrofitting existing engines and 2016 for the Tier 3 NOx standard – rather than prefacing these dates with the phrase “as soon as,” which the agency does in the ANPRM. In addition, although NACAA commends EPA for considering some flexible compliance mechanisms, the association urges the agency to adopt adequate enforcement mechanisms in the rule as well, to ensure achievement of the intended emission reductions. To view NACAA’s comments, click here.

EPA Publishes 2006 Toxics Release Industry Data (February 21, 2008)
EPA has made available to the public the 2006 Toxics Release Inventory (TRI) data, which includes information on disposal or other releases for more than 650 chemicals from approximately 23,000 industrial facilities across the country.  According to the TRI, almost 4.25 billion pounds of listed chemicals were released or disposed of from January 1 to December 31, 2006, representing a decrease of 105 million pounds (or 2 percent).  Air emissions made up one-third of the total (1.41 billion pounds), the largest of any individual environmental media.  Releases into the air decreased from 2005 to 2006 by 104 million pounds (7 percent).  From 2001 to 2006, air releases decreased by 13.6 percent.  According to the 2006 TRI data, the source category responsible for the largest releases to the air was the electric utility industry.  To access the data and information related to the 2006 TRI, see www.epa.gov/tri/tridata/tri06/index.htm.

NACAA Comments on EPA Residual Risk Proposal for Eight Source Categories (February 11, 2008)
NACAA submitted comments on EPA’s proposed Residual Risk standards for eight source categories, which were published in the Federal Register on December 12, 2007 (72 Federal Register 70543). EPA is proposing to require no additional controls beyond the MACT standard for the eight source categories. NACAA expressed concern with specific elements of the risk assessment methodology EPA used in making its determination. These include basing the assessment on the centroid of the census tract, rather than property-line concentrations; the use of actual instead of allowable emissions; and the failure to include emissions from startups, shutdowns and malfunctions. NACAA noted that if the methodology is not sound, EPA is not able to properly determine whether MACT truly resulted in adequate risk reduction.

NACAA Weighs in on Regulation of C3 Engines (February 8, 2008)
NACAA sent a letter to Senator Barbara Boxer, Chair of the Senate Committee on Environment and Public Works, expressing the association’s support for a legislative effort to regulate emissions from Category 3 (ocean-going) marine engines, as well as for ongoing international negotiations to seek agreement to curb emissions from these sources. Specifically, NACAA supports the Marine Vessel Emissions Reduction Act of 2007 (S. 1499/H.R. 2548), proposed by Senator Boxer and Rep. Hilda Solis, which would require domestic and foreign-flagged ships to use cleaner-burning, low sulfur fuels and impose more rigorous emission standards for C3 marine vessel engines. In its letter, NACAA also notes its support for the February 2007 U.S. proposal to the International Maritime Organization (IM) regarding marine fuel and engine standards. If adopted by the IMO, this proposal – which is based on the same substantive fuel and emission standards as S. 1499 and H.R. 2548 – will substantially reduce ship emissions on an international scale. NACAA states in its letter that, although such international action would have the benefit of farther-reaching impacts than domestic action alone, “history has shown that with the many nations involved in the IMO process, there is no assurance that the IMO will achieve consensus regarding international standards that are sufficient, and timely, to meet the air quality needs of the United States. Therefore, prompt action on S. 1499/H.R. 2548 will send an important message to the IMO that the U.S. is serious about controlling vessel emissions, thus helping to spur IMO actions. In addition, it will ensure that, in the event that the IMO does not take sufficient and/or timely action, the U.S, is prepared to move ahead quickly to enact this legislation to protect the health and welfare of its citizens.”

NACAA Comments on Proposed EPA Information Collection Request for Boiler MACT (February 5, 2008)
NACAA submitted comments on EPA’s proposed Information Collection Request (ICR) for data on Industrial Boilers and Process Heaters. This proposed ICR was announced in the Federal Register on December 7, 2007 (72 Federal Register 69213). EPA is planning to collect data on boilers in order to develop a revised MACT standard (the previous MACT standard was vacated by the court). In light of the fact that the data EPA collects will have a great impact on the calculation of the final MACT floor and MACT standard, NACAA recommended that EPA collect the best information possible. Specifically, the association suggested that there be additional emissions testing to support the development of an adequate MACT standard. Further, the design of a testing program should await the collection and analysis of existing information from EPA’s initial survey and the information NACAA will collect as part of the development of the association’s model Boiler MACT rule. Finally, NACAA recommended that EPA send its information request to all known major sources in the category, not just the sources that sent in notices in response to the earlier, vacated boiler rule.

President Proposes Budget for FY 2009 – Cuts Grants to Air Agencies (February 4, 2008)
President Bush announced his federal budget request for FY 2009, calling for $185.58 million in grants for state and local air agencies under Sections 103 and 105 of the Clean Air Act. Although this amount is $400,000 more than the President requested for FY 2008, it represents a cut of $31.25 million – 14.4 percent – from FY 2008 appropriated levels. Additionally, as in the last two budget requests, the President proposes to shift grants for particulate matter and air toxics monitoring to Section 105 authority (rather than Section 103 authority), thus necessitating matching funds from state and local air agencies. (Although this provision was part of the last two budget requests, Congress returned the funds to Section 103 during the appropriations process.) The proposed budget also includes $49 million for Diesel Emission Reduction Act (DERA) programs under the State and Tribal Assistance Grants program. This is equal to the amount appropriated for FY 2008 and is $14.2 million more than the President’s FY 2008 budget request of $35 million. The President indicates in his proposed budget that EPA will give preference to DERA grant requests from nonattainment areas. This $49-million sum is not part of the $185.58 million proposed for state and local air grants under Sections 105/103. The President did not request funds in FY 2009 for California Emissions Reduction Project grants; Congress added $9.84 million for such grants to the FY 2008 budget. The President’s request for EPA’s total FY 2009 budget is $7.14 billion, as compared to the FY 2008 appropriated amount of $7.47 billion and the FY 2008 requested amount of $7.2 billion. NACAA has previously recommended to the Administration that federal grants for state and local air agencies be $270.3 million in FY 2008. While this amount would not fully address the serious funding shortfall facing state and local agencies, it will help support some of the many important efforts state and local air agencies are called upon to undertake under the federal Clean Air Act. NACAA will continue to review the budget request to determine what other provisions may affect state and local air agencies. For budget details, see www.epa.gov/ocfo/budget/2009/2009bib.pdf and www.whitehouse.gov/omb/budget/fy2009/.

NACAA Submits Comments on EPA’s Proposed PM2.5 Increments Rule (January 17, 2008)
NACAA submitted comments on EPA’s proposed rule entitled, “Prevention of Significant Deterioration (PSD) for Particulate Matter Less Than 2.5 Micrometers—Increments, Significant Impact Levels (SILs) and Significant Monitoing Concentration (SMC).  NACAA supported inclusion of PM2.5 Increments in the Clean Air Act statutory authority of section 166(f), a question that has significant policy repercussions because regulating PM2.5 Increments under EPA’s preferred authority, section 166(a) would enable states to adopt measures that are alternatives to increments.  NACAA stated that this would contravene the intent of Congress that intended PSD increments to provide minimal, nationally uniform clean-air levels—but that states would have discretion to exceed them and to vary their implementation.  The association supported retention of PM10 increments until a coarse PM standard is promulgated, advocated a “fresh start” baseline, and encouraged EPA to undertake study and analysis of secondary particulate formation and its impact on ambient levels of PM2.5.


NACAA Submits Comments on EPA’s Advance Notice of Proposed Rulemaking (ANPR) on Revisions to the Lead NAAQS (January 16, 2008)
NACAA submitted comments on EPA’s ANPR on Revisions to the National Ambient Air Quality Standards for Lead.  The association urged EPA to follow the recommendations of its independent science advisors, CASAC, which asked EPA Staff to identify the level of the standard that would ensure that 95 percent or more of the children in the U.S. do not experience decreased IQ from exposure to ambient concentrations of recent airborne lead.  NACAA strongly opposed delisting and/or eliminating lead from the list of criteria pollutants.  With regard to ambient monitoring, NACAA supported CASAC’s view that the indicator for the revised lead NAAQS should be low-volume PM10  and urged EPA to provide adequate funding for monitors to support the revised lead NAAQS.  In addition, the association stated that the ANPR is not an adequate substitute for the EPA Staff Paper, which was part of the “old” process for NAAQS revision.


NACAA Submits Comments on EPA’s Proposed Flexible Permit Rule (January 14, 2008)
NACAA submitted comments on EPA’s proposed rule entitled, “Operating Permit Programs and Prevention of Significant Deterioration (PSD) and Nonattainment New Source Review (NSR); Flexible Air Permitting Rule” (72 Federal Register 52206).  NACAA’s comments consisted of a letter, an attachment, and three technical attachments on industrial boilers.  The association noted in its comments that it supports flexible and streamlined permitting, and that many states are using techniques such as lean, Kaizen, Six Sigma, and advance-approval concepts to achieve streamlining and flexibility under the current rules.  The association questioned whether the flexibilities proposed, however, which codify  definitions of alternative operating scenario (AOSs)  and alternative replicable methodologies (ARMs) are necessary or beneficial.  In addition, NACAA strongly opposed EPA’s Green Group proposal, pointing out that Green Group sources would be exempted from New Source Review modification requirements, would be allowed to qualify for permits that would be effective for a 10- to 15-year time period, and would be able to reserve available increment and freeze out development for 10 to 15 years.  In addition, the association stated that the mandatory nature of this program appears to conflict with section 116 of the Clean Air Act, which allows states to be more stringent than EPA.  The link to the comments is
here.  The link to the main attachment is here.  The link to the BACT Charts for Industrial Boilers is here. The link to the BACT Charts for Boilers is here. The link to the BACT Data for Boilers is here.

EPA Denies California Waiver (December 20, 2007)
Yesterday, at a 6:30 p.m. press briefing, EPA Administrator Stephen L. Johnson announced his decision to deny California’s request for a waiver of federal preemption to enforce the state’s motor vehicle greenhouse gas emission standards. The Administrator cited the new energy bill signed into law that morning by President Bush as part of the reason for the denial, saying the federal 35-mpg vehicle fuel efficiency standard contained in the bill would be more effective than a partial state-by-state approach. In addition, Johnson said that EPA did not find that separate California standards are needed to meet “compelling and extraordinary circumstances.” The CAA allows EPA to deny a waiver request if such a finding cannot be made. Shortly after Johnson’s announcement, California Governor Arnold Schwarzenegger issued a statement vowing to sue to overturn EPA’s decision. Today, Rep. Henry Waxman, Chairman of the House Committee on Oversight and Government Reform, sent a letter to Johnson advising him that the Committee has begun an investigation into “the integrity of the decision-making process” that lead to denial of the waiver, noting that “reports indicate that you overruled the unanimous recommendations of EPA’s legal and technical staffs in rejecting California’s petition.” Waxman requested that the Administrator provide “all documents relating to the California waiver request, other than those that are available on the public record.” To view EPA’s press announcement of the decision,
click here. To view Governor Schwarzenegger’s statement, click here. To view Rep. Waxman’s letter to Administrator Johnson, click here.

NACAA Comments on Petroleum Refineries Residual Risk and Technology Review Proposal (December 20, 2007)
NACAA
commented on EPA’s proposed standards to address emissions of hazardous air pollutants from petroleum refineries. The proposal, published in the Federal Register on September 4, 2007 (72 Federal Register 50716) was issued pursuant to Section 112(f) (Residual Risk), which calls for EPA to assess the risks from source categories that exist after the imposition of MACT and issue standards to address those risks. Additionally, EPA is required to review the MACT standards every eight years and issue an update, if appropriate. This proposal applies to both of those requirements. NACAA expressed concern about the risk assessment upon which EPA based the proposal noting, among other things, that it should have relied on actual emissions, it should have reflected property-line concentrations and it should have been based on more robust data. With respect to the proposed controls, NACAA recommended that the proposal at the very least reflect what state and local agencies are already requiring of petroleum refineries, including controls for storage vessels, wastewater streams, cooling towers and flares. Additionally, NACAA recommended that EPA call for fenceline monitoring and controls on startup, shutdown and malfunctions.

Congress Adopts Appropriations Legislation for FY 2008 (December 19, 2007
Congress has adopted appropriations legislation for the FY 2008 budget that includes a restoration of state and local air grants under Sections 103 and 105 to FY 2006 levels, minus a 1.56-percent across-the-board reduction that applies to all programs, for a total of $216.8 million (as compared to $220.3 million in FY 2006, $199.8 million in FY 2007 and $185.2 million in the President’s FY 2008 request). The legislation also would permit the continued use of Section 103 for PM monitoring funds. With respect to funding for Diesel Emission Retrofit Act (DERA) activities, the bill calls for $49.2 million and would allow both nonattainment and attainment areas to be eligible for the grants. The bill also calls for $10 million for diesel reduction efforts in two areas of California. Finally, the legislation prohibits funding for EPA to promulgate a rule that relaxes the “once-in-always-in” policy for air toxics sources (the proposed relaxation would allow sources to become minor sources at any time and escape MACT requirements). The bill now goes to the President for signature. Congress has adopted another Continuing Resolution (CR) to fund the government until December 31, 2007 to allow time for the White House to review the bill prior to the President’s signature. The current CR expires on December 21, 2007. For details about the latest omnibus bill, see www.rules.house.gov/110_fy08_omni.htm. For the bill language, see Division F (Interior) under Consolidated Appropriations Amendment. The EPA language begins on page 64 (the STAG details begin on page 68). See also the Joint Explanatory Statement for Division F (Interior). The EPA language begins on page 30 (STAG on page 38). Please also refer to the chart on page 134 for Section 103/105 details. See “State and Local Air Quality Management” under “Categorical Grants, approximately half-way down the page, and “Diesel Emissions Grants” and “CA emission reduction project grants” under “State and Tribal Assistance Grants (STAG)”.

EPA Issues Advanced Notice of Proposed Rulemaking for Lead NAAQS (December 5, 2007)

EPA has issued an
Advanced Notice of Proposed Rulemaking (ANPR) soliciting comment on a wide variety of issues related to EPA’s ongoing review of the lead National Ambient Air Quality Standards (NAAQS). The ANPR does not contain a recommendation from EPA for revising the level of the standard, but rather solicits comment on a wide range of options, including lowering the standard to the levels recommended by the Clean Air Scientific Advisory Committee and the agency’s staff paper or lower, as well as on other alternative levels, up to and including the current level. The ANPR is also soliciting comment “on the view that it is appropriate” to revoke the lead NAAQS or to remove lead from the list of criteria pollutants. EPA will accept comment on the ANPR for up to 30 days after publication of the notice in the Federal Register.

NACAA Testifies on Petroleum Refineries Residual Risk and Technology Review Proposal (November 27, 2007)

Arturo Blanco (Houston, TX)
testified on behalf of NACAA at an EPA hearing on the Proposed National Emission Standards for Hazardous Air Pollutants for Petroleum Refineries (Residual Risk and Technology Review standard). The hearing, which was held in Houston, Texas, was in response to the EPA proposal that appeared in the Federal Register on September 4, 2007 (72 Federal Register 50716). NACAA expressed opposition to the two options EPA proposed: the first of which would require no additional controls and the second of which would require insufficient additional measures. According to EPA’s own estimates, the cancer risks remaining after the imposition of MACT on petroleum refineries exceeded the 1 in 1 million benchmark, which calls for additional action. Therefore, NACAA stated that taking no additional action is unacceptable. NACAA recommended that EPA improve its risk analysis for the source category and require additional measures beyond those in the second option in the proposal. These additional measures could address flaring, vent gases, roof tanks and fenceline monitoring, consistent with strategies existing refineries have already employed. Other witnesses included Mayor Bill White of Houston, Texas, members of the public from the areas surrounding nearby refineries, and representatives from environmental groups and industry. EPA will accept written comment from the public on the proposal until December 28, 2007.

NACAA Updates Table of State Mercury Programs for Utilities (November 20, 2007)
NACAA has updated the comprehensive
table of state programs to address mercury emissions from utilities. Please continue to provide updates to Mary Sullivan Douglas of NACAA at mdouglas@4cleanair.org.

IPCC Releases Global Warming Synthesis Report (November 17, 2007)
The Intergovernmental Panel on Climate Change (IPCC) released its
summary report on global warming, concluding that it is “very likely” that observed increases in global temperature have been caused by anthropogenic greenhouse gas (GHG) emissions, and that continued GHG emissions at or above current rates “would cause further warming and induce many changes in the global climate system during the 21st century that would very likely be larger than those observed during the 20th century.” The IPCC report also concludes that human emissions of GHGs “could lead to some impacts that are abrupt or irreversible.”

Continuing Resolution to Fund Federal Government through December 14, 2007 (November 13, 2007)
Congress adopted and the President signed a Continuing Resolution (CR) that will fund the federal government through December 14, 2007. The previous CR provided funding for the federal government from October 1, 2007 – November 16, 2007 at FY 2007 levels. The new CR, which was included in Defense appropriations bill (H.R. 3222), also continues funding at FY 2007 levels. Only two of twelve FY 2008 appropriations bills have been adopted by Congress and sent to the President for signature. The federal operations covered by the remaining bills, which includes EPA’s budget, are subject to the CR. It is unlikely that Congress will adopt the Interior, Environment, and Related Agencies bill that funds EPA prior to the December recess. It is unclear whether this bill will be folded into a larger omnibus bill after the new year. For additional information about FY 2008 appropriations,
click here.

NACAA Comments on Proposed Iron and Steel Foundries Area Source HAP Rule (November 1, 2007)
NACAA submitted
comments on EPA’s proposed Iron and Steel Foundries Area Source hazardous air pollution rule, which had been published in the Federal Register on September 17, 2007. The proposal calls for a pollution-prevention approach requiring the removal of mercury-containing automobile switches prior to introducing scrap metal into a foundry. NACAA expressed support for pollution prevention but noted that the proposal does not call for sufficient monitoring that will allow for the measurement of the rule’s effectiveness. Likewise, portions of the proposal could be difficult to enforce without adequate performance measures. NACAA also recommended expanding the provisions in the program that call for the removal of mercury-containing components prior to recycling scrap metal.

NACAA Comments on Proposed Area Source Hazardous Air Pollutant Rules (October 22, 2007)
NACAA has submitted two letters commenting on proposed regulations to address emissions of hazardous air pollutants from area sources. The first letter comments on a proposed rule to address three source categories:
Clay Ceramics Manufacturing, Glass Manufacturing and Secondary Nonferrous Metals Processing. NACAA expressed dismay that the proposals would not result in additional reductions in emissions of hazardous air pollution above and beyond what sources already accomplish. Additionally, the association emphasizes that significant additional funding is necessary if state and local agencies are to implement area source regulations. The second letter comments on the proposed Electric Arc Furnace Steelmaking Facilities area source rule. The proposal requires a pollution-prevention strategy that calls for the removal of mercury-containing automobile switches prior to placing the scrap metal in the electric arc furnace. While NACAA generally supports pollution-prevention approaches, the association expressed concern that the proposed rule does not contain adequate monitoring that will allow the effectiveness of the program to be measured. In addition, certain provisions of the proposed rule would be difficult to enforce. NACAA also recommended that the requirements be expanded to include the removal of other mercury-containing products prior to sending scrap metal to electric arc furnaces.

Senators Lieberman and Warner Introduce Global Warming Cap-and-Trade Bill (October 18, 2007)

Senators Joseph Lieberman (I-CT) and John Warner (R-VA) introduced America’s Climate Security Act of 2007, which is a cap-and-trade bill designed to reduce greenhouse gas (GHG) emissions 15% below 2005 levels in 2020 and 65% below 1990 emissions in 2050. The bill covers the electric power, transportation and manufacturing sectors, covering 75% of U.S. GHG emissions. The bill contains a provision preserving state rights to enact more stringent GHG emissions limitations and awards “bonus” allowances to states that have adopted state-wide GHG emission reduction targets more stringent than those in the bill and that also adopt more stringent emission limitations on sources.
Click here for the legislation and click here for a detailed summary.

NACAA Comments on Paint Stripping and Surface Coating Area Source HAP Rule (October 17, 2007)
NACAA has submitted
comments on EPA’s proposed National Emission Standards for Hazardous Air Pollutants : Paint Stripping and Miscellaneous Surface Coating Operations at Areas Sources, which were published in the Federal Register on September 17, 2007 (72 Federal Register 52958). NACAA noted that, while it is important to address area sources, the program will be resource intensive. Therefore, state and local air agencies will require significant additional federal grants in order to address smaller sources, since those facilities are not covered by Title V fees. Additionally, NACAA noted that the applicability in the proposal is too broad and recommended that EPA include an appropriate de minimis threshold and exemptions for certain types of sources. Finally, NACAA stated that the compliance schedule may be difficult for state and local agencies and many small sources to meet, particularly since identifying affected facilities will be especially challenging.

NACAA Comments on EPA’s Proposal to Revise the Ozone National Ambient Air Quality Standards (NAAQS) (October 10, 2007)

NACAA submitted comments on EPA’s proposal to revise the ozone NAAQS. With respect to the primary ozone standard, NACAA commended EPA for proposing to set a more stringent primary ozone NAAQS to protect public health but expressed concerns that EPA’s proposal falls outside the range recommended by the Clean Air Scientific Advisory Committee and that EPA is considering retaining the current primary standard. Similarly, NACAA said it was pleased that EPA has proposed a distinct, cumulative seasonal secondary standard but questioned why EPA’s proposed range for the standard fell outside CASAC’s range and why EPA considered making the secondary standard identical to the primary.
Click here for the cover letter and click here for the attachment.

EPA Settles AEP New Source Review Case for Emissions Reductions of 813,000 Tons-Per-Year (October 9, 2007)

EPA has settled its New Source Review (NSR) case against American Electric Power (AEP) in "the single largest environmental enforcement settlement in history,"according to the EPA press release, . Filed in 1999 as part of the agency's original "NSR Initiative" against numerous old, coal-burning utilities, the case alleged that the company had made numerous modifications of its process equipment without complying with NSR requirements for permitting, air quality analysis, and installation of pollution control equipment. AEP has now agreed to cut 813,000 tons of air pollutants annually at an estimated cost of more than $4.6 billion, pay a $15 million penalty, and spend $60 million on Environmental Mitigation Projects. The projects require the company to undertake mitigation measures in Class I areas in several national parks; acquire and restore ecologically sensitive areas in Indiana, Kentucky, North Carolina, Ohio, Pennsylvania, Virginia, and West Virginia; mitigate nitrogen impacts in the Chesapeake Bay; and devise and implement a plan for mobile source projects, including reducing emissions from its barge fleet on the Ohio, Mississippi and Gulf Coast. Eight states joined the settlement and were intervenor/plaintiffs in the case: New York, New Jersey, Massachusetts, Vermont, Connecticut, New Hampshire, Maryland, and Rhode Island. The agreement imposes caps on emissions of pollutants from 16 plants located in five states. The facilities are located in Moundsville (2 facilities), St. Albans, Glasgow, and New Haven (2 facilities), West Virginia; Louisa, Kentucky; Glen Lyn and Carbo, Virginia.; Brilliant, Conesville, Cheshire, Lockburne, and Beverly, Ohio; and Rockport and Lawrenceburg, Indiana. The settlement is
here.

NACAA Testifies on Confined Animal Feeding Operations at Senate Hearing (September 6, 2007)
Catharine Fitzsimmons, Chief of the Air Quality Bureau of the Iowa Department of Natural Resources, testified on behalf of NACAA at a hearing held by the Senate Environment and Public Works Committee to examine the human health and environmental impacts of confined animal feeding operations (CAFOs). NACAA’s
testimony decried legislative and regulatory efforts to exempt industrial-size CAFOs from environmental laws, stating that if CAFOs emit air pollutants that exceed permitting thresholds or reportable quantities, then, just like other sources of pollution, CAFOs should comply with environmental laws. The testimony notes that large industrial-size CAFOs are responsible for thousands of tons of manure and release, in substantial quantities, air pollutants such as ammonia, hydrogen sulfide and particulate matter that can cause severe health effects, including death, heart attacks and increased severity of asthma attacks. [For further information: Air Web – Top Headlines and Agriculture Committee page]

NACAA Testifies in Support of Strengthening the Ozone NAAQS (August 30, 2007)
At EPA public hearings held in Philadelphia, Pennsylvania, and Los Angeles, California, NACAA representatives presented
testimony in support of tightening the ozone National Ambient Air Quality Standards (NAAQS). NACAA will also present identical testimony at the three public hearings to be held September 5, 2007, in Atlanta, Georgia; Chicago, Illinois; and Houston, Texas.

House Passes Energy Package (August 6, 2007)
On Saturday evening, August 4, 2007, before the start of the August recess, the House of Representatives passed its energy package -- the New Direction for Energy Independence, National Security, and Consumer Protection Act -- by a vote of 241 to 172. The final package includes a 15-percent Renewable Electricity Standard (RES), under which utilities are required to produce 15 percent of electricity from renewable sources, up to 4 percent of which may be met with energy efficiency measures (this provision evolved from a 20-percent RES, to a 15-percent RES, to a 15-percent RES with allowances for energy efficiency measures). The final House bill does not include Corporate Average Fuel Economy Standards or a Renewable Fuels Standard, both of which are included in the Senate's adopted energy package. These two issues, along with the RES, will be the focus of vigorous debate during the forthcoming House-Senate Conference Committee negotiations to resolve the differences between the two bills. Also lending to the controversy is last week's policy announcement by the White House threatening a veto. Further information on the bill and vote is available at
http://thomas.loc.gov/.

NACAA Files Comments Opposing “EGU Supplemental” Requiring Hourly Increases in Emissions for NSR Applicability (August 3, 2007)

NACAA filed comments opposing EPA’s proposed rule, “Supplemental Notice of Proposed Rulemaking for Prevention of Significant Deterioration and Nonattainment New Source Review: Emissions Increases for Electric Generating Units.” Making essentially the same points that were made in the testimony given June 29 at the public hearing on the EGU Supplemental by John Paul (Dayton, Ohio), Co-Chair of the New Source Review (NSR) Committee, the association commented that the proposed rule: 1) contravenes Congressional intent, essentially eliminating modifying EGUs from the NSR program; 2) allows annual emission increases without evaluation of the impact on the annual NAAQS, and hampers state and local efforts to prevent significant deterioration of air quality; 3) is based on an inappropriate set of assumptions regarding other Clean Air Act programs; 4) would give an unfair competitive advantage to existing poorly controlled EGUs making future modifications and life-cycle extensions; and 5) will achieve none of the emissions reductions that have been realized by NSR enforcement actions challenging unpermitted modifications resulting in annual emissions increases. NACAA stated that increases in emissions from utilities “will not only undercut our SIP efforts, but also will place an unfair burden on other sources of pollution—including small businesses—who will be forced to make up for some of these unreviewed emissions increases with far more expensive and considerably less cost-effective strategies.” The comments are
here.

NACAA Comments on Small Nonroad and Marine SI Engine Rule (August 1, 2007)
NACAA submitted written comments to EPA on the agency's proposed rule to control emissions from small, nonroad and marine gasoline-powered (spark-ignition) engines. In the written comments, NACAA articulated strong support for prompt EPA action to reduce emissions from these sources, noting that states and local air agencies other than California are preempted from adopted standards or other requirements for nonroad SI engines under 50 horsepower. In particular, NACAA urged that emission control requirements from these sources achieve the greatest reductions feasible as soon as possible, and offered several specific recommendations in that regard. In addition, with respect to a petition to EPA by the American Road and Transportation Builders Association (ARTBA) seeking a broad preemption of state and local authority relative to in-use and operational controls or fleetwide purchase, sale or use standards for nonroad vehicles, NACAA vigorously opposed any such preemption and strongly urged that EPA deny ARTBA's petition. In addition, to the extent that EPA ignores this NACAA recommendation and considers even modest changes in response to ARTBA's petition, we strongly urged that those revisions be the subject of a separate rulemaking and public hearing. To view NACAA's written comments,
click here.

NACAA Sends Letter on House Energy Legislation (July 31, 2007)

The House of Representatives will be debating comprehensive energy legislation
(HR 3221) on Friday, August 3, 2007, and NACAA sent a letter to the House of Representatives expressing the association's support for 1) stronger Corporate Average Fuel Economy standards, 2) a Renewable Electricity standard, 3) air quality safeguards for expanded use of alternative fuels and 4) protection of state/local rights.

D.C. Circuit Upholds EPA’s Animal Feeding Operation Consent Agreement (July 17, 2007)

A challenge by the Sierra Club, the Association of Irritated Residents, and others to EPA’s consent agreement for Animal Feeding Operations (AFOs) has been rebuffed by the United States Court of Appeals for the District of Columbia. The consent agreement, originally termed the “Safe Harbor Agreement,” has been joined by nearly 2,600 AFOs, primarily hog, dairy, and poultry farms. Under the terms of the agreement, EPA has agreed that it will not enforce violations of the Clean Air Act, the Emergency Planning and Community Right-to-Know Act (EPCRA) and the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) against those AFOs who sign the agreement, pay a $2500 civil penalty and allow emissions monitoring on their farms. The Court held that the AFO agreement was a valid exercise of the agency’s enforcement discretion rather than, as petitioners argued, a rulemaking that violated the Administrative Procedures Act. The opinion of the D.C. Circuit Court is
here.

NACAA Testifies Opposing EGU Hourly Test (June 29, 2007)
On June 29, NACAA, represented by John Paul (Dayton, Ohio) testified opposing EPA’s proposed rule, “Supplemental Notice of Proposed Rulemaking for Prevention of Significant Deterioration and Nonattainment New Source Review: Emissions Increases for Electric Generating Units.” John stated that the proposed rule: 1) contravenes Congressional intent, essentially eliminating modifying EGUs from the NSR program; 2) allows annual emission increases without evaluation of the impact on the annual NAAQS, and hampers state and local efforts to prevent significant deterioration of air quality; 3) is based on an inappropriate set of assumptions; 4) would give an unfair competitive advantage to existing poorly controlled EGUs making future modifications and life-cycle extensions; and 5) will achieve none of the emissions reductions that have been realized by NSR enforcement of unpermitted modifications for which actual, annual emissions have increased. The complete testimony is
here.

EPA Proposes Revisions to Ozone National Ambient Air Quality Standards (June 21, 2007)
EPA has
proposed to revise the National Ambient Air Quality Standards (NAAQS) for 8-hour ozone. For the primary (health-based) standard, EPA is proposing that the standard be lowered from 0.08 parts per million (ppm) to between 0.070 and 0.075 ppm. EPA is also taking comment on alternative levels of the 8-hour primary ozone standard, within a range from 0.060 ppm up to and including retention of the current standard. EPA is proposing two options for the secondary standard: setting it at a level identical to the current standard or establishing a new form of standard designed specifically to protect sensitive plants from damage caused by repeated ozone exposure throughout the growing season. The new form of standard (called W126) would add daily concentrations over a 3-month period and the level would be set within the range of 7 to 21 ppm-hours. EPA will take public comment for 90 days following publication of the proposal in the Federal Register. The agency also will hold four public hearings on the proposal: in Los Angeles, CA, and Philadelphia, PA, on August 30, 2007; and in Chicago, IL, and Houston, TX, on September 5, 2007.

D.C. Circuit vacates, remands, Plywood MACT (June 19, 2007)
The D.C. Circuit Court of Appeals has vacated and remanded EPA’s Maximum Achievable Technology Standards for the Plywood and Composite Wood Products source category. Holding that EPA’s rule failed to comply with the statutory requirement to set emission standards for listed HAPs, the Court also held that EPA exceeded its authority by creating a risk-based subcategory. NACAA had filed an amicus brief on this issue, arguing that such a subcategory was unlawful under the Clean Air Act, which only allows consideration of risk in the second, residual risk, phase of air toxics control. A copy of the opinion is
here.

EPA Wins NSR Rulings in Cinergy on Fair Notice and Routine Maintenance (June 19, 2007)

EPA has prevailed on two key issues in the New Source Review (NSR) case, U. S. v. Cinergy Corp. Filed in 1999 in the Southern District of Indiana by EPA, and joined by Intervenors New York, New Jersey, Connecticut, the Hoosier Environmental Council and the Ohio Environmental Council, the case alleged that numerous modifications were made by Cinergy Corporation (“Cinergy”) at its Beckjord, Cayuga, Gallagher, Gibson, and Miami Fort power plants without NSR permits, installation of pollution control equipment, and air quality analysis. The District Court had ruled against Cinergy on the applicable test for emissions increases, and was subsequently upheld by the Seventh Circuit Court of Appeals. The Court had also determined the correct standards for judging whether a project fell within the exception from NSR for “Routine Maintenance.” Cinergy then alleged that it had had no fair notice of either of the legal standards. In a strongly worded opinion, the Court disagreed. Dismissing Cinergy’s claims of “confusion over the meaning of the RMRR exclusion,” Judge Larry McKinney held that Cinergy could have sought an applicability determination and stated, “the fair notice doctrine does not save parties who take calculated risks.” The Fair Notice opinion is
here. In a separate opinion, Judge McKinney applied the Routine Maintenance standards—nature and extent, purpose, frequency, and cost—to all of the maintenance projects and concluded that none was “routine.” The Routine Maintenance opinion is here.

NACAA Comments on EPA Risk and Technology Review Advance Proposal (June 14, 2007)

NACAA submitted
comments to EPA on the Advance Notice of Proposed Rulemaking (ANPRM) for the Risk and Technology Review that pertains to 22 categories of hazardous air pollutant sources. The ANPRM was published in the Federal Register on March 29, 2007 and sought comments from state and local agencies and the public about data EPA had collected and planned to use to establish Residual Risk standards and to update Maximum Achievable Control Technology standards for the source categories. NACAA expressed concern about the lack of quality air toxics data and recommended that EPA take additional measures to compile comprehensive information, including sending out Section 114 letters. NACAA also noted that some of EPA’s methods for conducting the preliminary risk assessments were problematic and should be corrected prior to carrying out the final risk assessments. These included methods for addressing acute exposures, the use of actual emissions instead of potential emissions, and calculations of risk at the centroid of census blocks instead of at property lines. Finally, NACAA emphasized the importance of allowing existing state and local risk assessment programs to substitute for EPA’s program.

NACAA Urges Senate to Increase State and Local Air Grants (June 12, 2007)
NACAA sent a
letter to the Senate Appropriations Subcommittee on Interior, Environment, and Related Agencies urging that it increase federal grants to state and local air pollution control agencies during mark-up of appropriations legislation, which is expected to be scheduled for the week of June 18. Specifically, NACAA recommended that Congress provide an increase of $80.5 million above the President’s request, for a total of $265.8 million. Additionally, the association recommended that grants for the particulate matter monitoring program not be shifted from Section 103 authority to Section 105 authority. The House Appropriations Committee recently approved an appropriations bill that called for $220.3 million for state and local air grants, which is equal to FY 2006 levels.

NACAA Opposes Draft Legislation to Preempt State and Federal Authorities to Regulate Motor Vehicle GHG Emissions (June 6, 2007)

NACAA sent a letter to Rep. Rick Boucher (D-VA) and Rep. Dennis Hastert (R-IL), Chair and Ranking Member of the House Energy and Commerce Subcommittee on Energy and Air Quality, respectively, urging that the Subcommittee strike provisions from draft energy legislation that would 1) preempt California, and any states that opt into California's standards - currently numbering 11 - from regulating GHG emissions from motor vehicles and 2) revoke EPA's authority under the Clean Air Act to regulate motor vehicle greenhouse gas emissions, thereby overriding the recent Supreme Court decision in Massachusetts. v EPA. The Subcommittee on Energy and Air Quality will hold a hearing on this legislative draft on Thursday, June 7, 2007, and will mark up the legislation next Wednesday; mark-up by the full Energy and Commerce Committee is expected the following week. The legislative draft at issue addresses alternative fuels, infrastructure and vehicles and was released last Friday, June 1, by Subcommittee Chair Boucher, who noted that the intent of the draft language is that it be incorporated into a comprehensive House energy bill. To view NACAA's letter,
click here. To view the draft legislation, click here.

NACAA Testifies on Proposed Rule for Small Nonroad and Marine SI Engines (June 5, 2007)
NACAA presented testimony at EPA's public hearing in Reston, Virginia, on a proposed rule to control emissions from small nonroad spark-ignition (SI) and marine SI engines. In its testimony, NACAA offered strong support for prompt EPA action to reduce emissions from these sources, noting in particular that since state and local air agencies other than California are preempted from adopting standards or other requirements for nonroad SI engines under 50 hp, "it is incumbent upon EPA to ensure that this rule achieves the greatest degree of reductions possible as soon as possible." To that end, the association offered several comments and recommendations on the proposed engine exhaust and evaporative emission standards. In addition, regarding a petition to EPA by the American Road & Transportation Builders Association (ARTBA) seeking a broad preemption of state and local authority relative to in-use and operational controls or fleetwide purchase, sale or use standards for nonroad vehicles, NACAA vigorously opposed any such preemption and strongly urged that EPA deny ARTBA's petition. To view NACAA's testimony,
click here.

President Bush Announces Deadline for Seeking Long Term GHG Emissions Reduction Goal (May 31, 2007)
President Bush
announced today that by the end of 2008 the U.S. and other nations "will set a long-term global goal for reducing greenhouse gases [GHGs]." To help develop this goal, the United States will convene a series of meetings of nations that produce most GHG emissions, including nations with rapidly growing economies like India and China. In addition to a long-term goal, the President said that each country should set midterm national targets, and "programs that reflect their own mix of energy sources and future energy needs ."

NACAA Testifies in Support of CA Waiver (May 22, 2007)
NACAA testified at EPA's public hearing in Arlington, Virginia offering strong support for full and prompt approval of California's request for a waiver of federal preemption under CAA Section 209(b), to permit enforcement of the state's new motor vehicle emission standards to control greenhouse gas emissions. California adopted its regulations in September 2005 and submitted its waiver request to EPA in December 2005. On behalf of NACAA, Bill Becker urged EPA to respond to California's request without further delay and to grant complete approval of the waiver of federal preemption. Bill testified that EPA's role in considering a waiver request is narrow and deferential. Under the law, EPA must grant California's request for a waiver unless it can demonstrate that California acted arbitrarily and capriciously in adopting its regulations, that there is no longer a compelling and extraordinary need for California to maintain its own motor vehicle program or that California's regulations are not consistent with Section 202(b) of the CAA. In the case of California's greenhouse gas regulations, none of these can be demonstrated and EPA does not have the discretion to deny the waiver request. To view NACAA's testimony,
click here. A second hearing on this issue will be held in Sacramento, CA on May 30, 2007. Larry Greene (Sacramento, CA) will testify on behalf of NACAA at that hearing. The deadline for submitting public comments to EPA is June 15, 2007 (see EPA's April 30, 2007 and May 10, 2007 Federal Register announcements for details).

NACAA Recommends Grant Increases for FY 2008 During Mark-up (May 21, 2007)
NACAA sent a
letter to the House Appropriations Subcommittee on Interior, Environment and Related Agencies urging that the subcommittee increase federal grants to state and local air pollution control agencies during mark-up of the legislation containing EPA’s FY 2008 budget. Specifically, NACAA recommended that Congress provide an increase of $80.5 million above the President’s request, for a total of $265.8 million. Additionally, the association recommended that grants for the particulate matter monitoring program not be shifted from Section 103 authority to Section 105 authority. Subcommittee mark-up was expected during the week of May 21, while full committee mark-up will take place sometime thereafter. Action in the Senate has not been scheduled.

Table of State Mercury Programs for Utilities (May 17, 2007)
NACAA has updated the comprehensive
table of state programs to address mercury emissions from utilities. Please continue to provide updates to Mary Sullivan Douglas of NACAA at mdouglas@4cleanair.org.

NACAA Testifies on Locomotive-Marine Proposed Rule (May 8, 2007)
NACAA Mobile Sources and Fuels Committee Co-Chair Dennis McLerran (Seattle, WA) testified on behalf of the association at EPA's public hearing, in Seattle, on a proposed rule to control emissions from locomotive and marine diesel engines. In its testimony, NACAA commended EPA for its leadership in issuing the proposal, which "represents a good step forward in addressing emissions from locomotive and marine diesel engines," and offered several key recommendations to strengthen the rule's public health and environmental benefits. Among the association's recommendations are ones to accelerate implementation dates for emission standards for new and remanufactured locomotives; include remanufacture standards for locomotives used in Class II and III railroads; require remanufacture standards for Category 1 and 2 marine engines; and expand coverage of Tier 4 emission standards for new marine diesel engines to all C1 and C2 engines over 25 hp. To view NACAA's testimony,
click here. NACAA's testimony will also be entered into the record at EPA's May 10 public hearing in Chicago by Eric Skelton, who will be testifying on behalf of NESCAUM.

Multi-State Greenhouse Gas Registry Launched (May 8, 2007)
More than 30 states have joined
The Climate Registry, a “tool to measure, track, verify and publicly report GHG [(greenhouse gas)] emissions accurately, transparently and consistently across borders and industry sectors.” The Registry will support voluntary, market-based and regulatory GHG emissions reporting programs.

NACAA Comments on EPA’s proposed NSR rule “Reasonable Possibility in Recordkeeping (May 8, 2007)
NACAA
commented on EPA’s proposed rule on NSR “Reasonable Possibility in Recordkeeping,” published in the Federal Register on March 8, 2007. The proposed rule sets forth a preferred option for recordkeeping that would require sources to keep records of emissions following a modification if the change’s projected actual emissions increase were 50 percent of the significance level for the regulated NSR pollutant. NACAA opposed the preferred option since it provides for no oversight by permitting authorities. Rather, NACAA recommended that, if a source’s emissions triggered NSR significance levels using the actual to potential test without excluding emissions as a result of demand growth, then post-change emissions impacts of the project should be reported annually to the appropriate state or local air agency. NACAA also recommended that, for any change, the source’s preconstruction analysis of the baseline and projected actual emissions should be available to the permitting authority and should be retained and kept on file by the source. The Association further stated that if, at any time, actual emissions increase at or beyond significance levels, “such a change should be considered to be a violation of the requirement to obtain a major PSD or nonattainment NSR preconstruction permit and the state or local agency should have the authority to take [an appropriate] enforcement action.”

IPCC Releases Report on Mitigation of Climate Change (May 4, 2007)

The Intergovernmental Panel on Climate Change (IPCC) released a
report on options for mitigating global warming. In the short term (before 2030), the report concludes "there is substantial economic potential" to mitigate GHG emissions but no one sector or technology can address the entire mitigation challlenge. In the long term (after 2030), in order to stabilize greenhouse gas concentrations in the atmosphere, emissions will first peak and then need to decline, and to achieve lower stabilization levels, the decline must happen sooner rather than later and the world economy must shift more rapidly than it has in the past to low-carbon energy resources. This is the 3rd report the IPCC has released this year.

NACAA Comments on Once-In-Always-In Proposal for Sources of Hazardous Air Pollution (May 3, 2007)
NACAA submitted
comments on EPA's proposed "Once In, Always In" (OIAI) rule, which was published in the Federal Register on January 3, 2007. The proposal would allow major sources of hazardous air pollutants to lower their emissions to below the major-source threshold at any time and become minor sources (thus exempting them from the Maximum Achievable Control Technology requirements). NACAA opposed the proposal because it would allow sources to increase their emissions to just under the major-source threshold. Additionally, it could remove major sources from the Title V program, undermining enforcement, inspection, data collection and monitoring requirements. NACAA recommended that the only exceptions to the OIAI policy be for sources that have reduced emissions through pollution prevention. Click here to see the 2003 comment letter from STAPPA/ALAPCO that was mentioned in the comment letter. [For further information: Air Web – Air Toxics Committee page]

EPA Issues FY 2008 Grant Guidance and Allocation (May 3, 2007)

EPA issued its National Program and Grant Guidance for FY 2008, which includes the proposed allocation of state and local air grants under Sections 103 and 105 among the EPA regions and major activities. The proposed allocation reflects the President’s budget request for FY 2008, which calls for a total of $185.2 million in grants to state and local agencies. This allocation is still tentative, pending Congressional action to determine the final appropriation for EPA. If Congress changes the amounts set aside for state and local air quality grants, the allocation and guidance will have to change to reflect the final appropriations legislation. On April 12, 2007, NACAA submitted comments on the February 27, 2007 draft guidance and allocation. The final document reflects few changes based on NACAA’s comments, although it does amend some of the language pertaining to the association.
Click here to view the guidance. Scroll down to Key Links and look under FY 2008 NPM Guidance, Office of Air and Radiation.

NACAA Adopts Global Warming Principles (May 1, 2007)
At its spring 2007 membership meeting, NACAA adopted global warming
principles calling on Congress to adopt a “mandatory economy-wide greenhouse gas (GHG) emission reduction program with quantifiable and enforceable limits” that also preserve the rights of states and localities to take more stringent actions to reduce GHG emissions within their jurisdictions.

NACAA Submits Testimony to Senate Appropriations Subcommittee (April 26, 2007)
NACAA submitted
written testimony to the Senate Appropriations Subcommittee on Interior, Environment, and Related Agencies – which has jurisdiction over EPA’s budget – recommending that federal grants to state and local air quality agencies under Sections 103 and 105 of the Clean Air Act be increased. Specifically, NACAA requested that the appropriation for state and local air grants in FY 2008 be increased by $80.5 million above the President’s $185.2-million request, for a total of $265.8 million. NACAA also recommended that grants for the particulate matter monitoring program not be shifted from Section 103 authority to Section 105 authority. The association expressed support for $49.5 million in funding for the diesel retrofit programs under the Diesel Emission Reduction Act. The Senate Subcommittee does not hold hearings for outside witnesses, but only accepts written testimony. As announced last week, Bill Becker testified on behalf of NACAA at the hearing of the House Subcommittee on Interior, Environment, and Related Agencies. [For further information: Air Web – Top Headlines and Program Funding Committee page]

NACAA Testifies Before House Appropriations Subcommittee (April 19, 2007)
Bill Becker, Executive Director of NACAA,
testified before the House Appropriations Subcommittee on Interior, Environment, and Related Agencies, which has jurisdiction over EPA’s budget. The testimony focused on the need for increases in federal grants to state and local air quality agencies under Sections 103 and 105 of the Clean Air Act. Specifically, NACAA requested that the amount appropriated for state and local air grants in FY 2008 be increased by $80.5 million above the President’s request, for a total of $265.8 million. Originally, when the President’s FY 2008 budget was announced, NACAA recommended an increase of $60 million above the requested amount. However, since that time, FY 2007 grants were reduced by $20.5 million, which must be absorbed in the final six months of the fiscal year. Accordingly, the association is increasing the FY 2008 recommendation by that lost amount, to make up for the deficits that reduction will have caused. NACAA also recommended that grants for the particulate matter monitoring program not be shifted from Section 103 authority to Section 105 authority. Finally, the association expressed support for $49.5 million in funding for the diesel retrofit program authorized under the Diesel Emission Reduction Act.

NACAA Comments on EPA’s Draft Grant Guidance (April 12, 2007)
NACAA
commented on the EPA Office of Air and Radiation’s FY 2008 Final Draft National Program and Grant Guidance (dated February 27, 2007), which outlined proposed program priorities and the grant allocation among activities and regions for the coming fiscal year. The guidance reflected the President’s budget for FY 2008, which called for a cut to state and local air grants of $35.1 million from FY 2006 levels (down to $185.2 million). In the comments, among other things, NACAA discussed the devastating effect the proposed budget cuts would have on state and local air quality programs. The associations also took issue with provisions in the draft guidance directing who within state environmental departments must sign off on off-the-top expenditures. Additionally, NACAA indicated that the negative impact of the proposed cuts would be exacerbated if EPA focuses the reductions on activities related to four specific pollutants, as the agency is recommending. NACAA also noted that cutting PM 2.5 monitoring funds and shifting the remainder from Section 103 authority to Section 105 authority (which requires a match) will result in a significant loss to the monitoring program.

IPCC Report on Climate Change Impacts Released (April 6, 2007)
The Intergovernmental Panel on Climate Change (IPCC) released its second summary
report this year on global warming, finding ample evidence that global warming is already affecting the planet. This report, focusing on the impacts of climate change, adaptation and vulnerability, examined data collected since 1970 on the impact of global warming and the results of models predicting future impacts.

NACAA Issues Press Release on FY 2007 Grant Cuts in EPA Operating Plan (March 22, 2007)
 NACAA issued a
press release expressing concern about EPA’s action to cut state and local air grants by $20.5 million in the remaining months of FY 2007. EPA has submitted its FY 2007 Operating Plan to Congress, detailing the distribution of the funds appropriated within the FY 2007 Continuing Resolution. While the Operating Plan holds the total amount for State and Tribal Assistance Grant funds steady, the agency has shifted funds among categorical grants, resulting in a reduction to state and local air grants.

EPA Cuts Air Grants by $20.5 Million in Operating Plan for FY 2007 Appropriations (March 20, 2007)
EPA has transmitted its FY 2007 Operating Plan to Congress, calling for a cut of $20.5 million to state and local air grants (from $220.3 million in FY 2006 to $199.8 million in FY 2007). The Operating Plan details how EPA intends to allocate the FY 2007 appropriations from the Continuing Resolution that Congress adopted in February 2007 to fund the agency until September 30, 2007. Although the Continuing Resolution generally called for FY 2007 appropriations to be equal to FY 2006 levels, EPA was given some flexibility to shift funds among accounts. While most categorical grant accounts were held steady or showed modest shifts from FY 2006 to FY 2007, there were exceptions, including the reduction to air grants and an increase of $18.9 million for the Underground Storage Tank Program. Unlike previous years, there is no requirement for Congress to approve this year’s Operating Plan. NACAA, the Environmental Council of the States, environmental groups and others are calling upon Congress to restore the FY 2007 categorical grants to their FY 2006 levels through a directive to EPA in the FY 2007 supplemental appropriations bill that Congress will consider shortly.
Click here to view the Operating Plan. Click here to view EPA’s letter transmitting the Operating Plan to the Senate.

EPA Issues Memo Providing Guidance on Impact of 8-Hour Ozone Court Decision (March 19, 2007)
EPA Acting Assistant Administrator for Air and Radiation Bill Wehrum issued a
memo providing guidance on the impacts of the D.C. Circuit Court decision of December 22, 2006, that vacated the Phase I 8-Hour Ozone Implementation Rule.

Court Hears Oral Argument in NACAA v. EPA, on Regulation of Aircraft Engine Emissions  (March 15, 2007)
The U.S. Court of Appeals for the D.C. Circuit heard oral argument in the case of NACAA v. EPA, in which NACAA has challenged EPA's November 2006 final rule on the control of air pollution from aircraft and aircraft engines (70 Federal Register 69664). NACAA argued before the three-judge panel that EPA's rule is arbitrary and capricious, not in accordance with Section 231 of the Clean Air Act and will interfere with the ability of state and local clean air agencies to comply with the Act's other provisions. To view NACAA's initial opening brief (July 28, 2006),
click here. To view NACAA's initial reply brief (October 26, 2006), click here.