EMISSIONS ENDANGERMENT

EPA Declares Greenhouse Gases a Danger; Controversial Formal Label Opens Door to New Emissions Regulations for Power Plants, Refiners, Smelters and Others
Ian Talley, December 7, 2009 (Wall Street Journal)

"The U.S. Environmental Protection Agency, as expected…declared greenhouse gases a danger to public health, a decision that could soon lead to new emissions regulations for businesses across the economy.

"The "endangerment finding" announced by EPA Administrator Lisa Jackson is necessary to move ahead on new emissions standards for cars due out in March 2010. Made under the Clean Air Act, it also opens up large emitters such as power plants, oil refineries, chemical plants and metal smelters to regulations that limit their output of carbon dioxide and other gases…"

click to enlarge

"The controversial decision, proposed by the administration earlier this year, comes as a global climate summit opens in Copenhagen. It gives the administration leverage in its negotiations and puts pressure on Congress to pass a [House-approved, Senate-opposed] bill that cuts greenhouse gases in a more economically efficient way…

"Environmentalists celebrated the announcement…Some lawmakers and groups such as the U.S. Chamber of Commerce and the National Association of Manufacturers warned the decision could bring the entire economy to a halt, not only regulating large emitters within months, but also opening other mobile sources and smaller emitters to regulation…"

click to enlarge

"Without any cost analyses of new greenhouse-gas regulations, it is difficult to estimate what the actual impact could be on the economy. Dan Riedinger, a spokesman for the utility industry group Edison Electric Institute, pointed to cost predictions for federal legislation as a guide to the cost. Estimates for legislation vary between $100 a year to $1,000 a year extra for families, and such legislation is specially designed to moderate costs…[T]he EPA strongly challenges dire economic assertions.

"Ms. Jackson indicated the agency would soon finalize a new "tailoring rule" that will set a greenhouse-gas-emissions threshold for regulators at 25,000 tons a year…designed to target the largest emitters…The EPA says that would mean around 13,600 coal-burning power stations, crude refineries, metal smelters and other industrial facilities would come under existing regulations…[and] companies would be required to apply for permits that include the "best available technology." The EPA is seen finalizing what is considered the best available technology in 2011…"