Weekly Climate Change Policy Update - August 23, 2010

Article by Kyle Danish, Shelley Fidler, Kevin Gallagher, Megan Ceronsky and Tomás Carbonell

To receive the Weekly Update via email, visit our Sign Up/Subscribe page http://www.vnf.com/news-signup.html

Commentary

EPA and NHTSA are close to proposing GHG standards for heavy duty vehicles . . . Legislation to implement the Western Climate Initiative failed in Oregon and Washington, leaving only California and New Mexico as likely participants for the scheduled 2012 launch of the WCI cap-and-trade program . . . The Chamber of Commerce doubled down on its legal challenges to EPA's endangerment finding.

Executive Branch

• EPA and NHTSA Close to Proposing GHG Standards for Heavy Duty Vehicles. The Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration have completed work on a proposed joint rule that would establish greenhouse gas (GHG) emission limitations and fuel economy standards for heavy duty vehicles in model years 2014 through 2018. The proposed rule is currently under review at the White House Office of Management and Budget, which suggests that it will soon be released for public comment. According to the press accounts, EPA plans to finalize the standards by June 2011. The standards are expected to utilize technologies such as low-resistance tires; aerodynamic improvements; and reduced idling to achieve reductions in fuel use and GHG emissions. Unlike passenger cars, heavy duty vehicles are often assembled by purchasers. The purchasers acquire engines, trailers, tires, cabs and other components tailored to specific uses, and they acquire these components from multiple manufacturers. Accordingly, few manufacturers sell the entire vehicle, and changes to components are not made according to the model year concept familiar in the passenger car market; for these reasons, regulation of GHGs and fuel economy standards in this part of the transportation sector presents unique policy challenges.
• DOE Proposes Public Disclosure of Fuel Cycle Energy and GHG Benefits of Appliance Standards. Acting on recommendations issued in May 2009 by the National Academy of Sciences, the Department of Energy (DOE) proposed using a "full fuel cycle" (FFC) approach to calculating the energy consumption and GHG emission benefits of appliance efficiency standards in future rulemakings. In contrast to the current DOE approach, which only estimates energy consumed at the point of use, the FFC approach would estimate all energy and GHG impacts of energy use from the point of production to the point of use. To calculate FFC impacts, DOE proposed to adopt the Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) model developed by Argonne National Laboratory. In addition, DOE proposed to disclose the resulting energy and GHG findings to the public in an online format. DOE noted that it expects the new method to increase the reported energy and environmental benefits of future appliance efficiency standards. The proposal is available at: http://edocket.access.gpo.gov/2010/pdf/2010-20563.pdf.
• CEQ Extends Comment Period on Guidance for GHG Reporting. The White House Council on Environmental Quality (CEQ) has issued a notice extending the public comment period for proposed guidance on methods for quantifying and reporting GHG emissions from Federal operations. The notice extends the deadline from August 16, 2010 to Sept. 1. CEQ's proposed guidance is intended to help implement Executive Order 13514, which requires Federal agencies to establish GHG emission reduction targets for the next decade.
• DOE Partnership Completes Demonstration of Terrestrial Sequestration. DOE announced that one of its seven Regional Carbon Sequestration Partnerships has completed a successful demonstration of best practices for terrestrial sequestration of carbon dioxide (CO₂) in biomass and soils. Eighty public and private organizations participating in the Plains CO₂ Reduction Partnership conducted field tests in an area ranging from Iowa to Alberta, Canada. The organizations gathered soil and gas samples from various restored ecosystems in order to determine net sequestration of carbon dioxide, methane, and nitrous oxide. The results of the study will, among other things, inform the development of protocols for issuance of offset credits for terrestrial sequestration.

Judicial

• Chamber Appeals EPA's Refusal to Reconsider Endangerment Finding. The U.S. Chamber of Commerce (Chamber) filed a petition in the D.C. Circuit Court of Appeals seeking review of EPA's recent decision to deny reconsideration of the agency's December 2009 finding that GHG emissions from motor vehicles contribute to an endangerment to public health and welfare. The Chamber already has a petition for review of the endangerment finding itself pending before the D.C. Circuit; according to the Chamber, the new petition focuses not on EPA's assessment of the science of climate change, but on the wisdom of EPA's decision to regulate GHG emissions under the Clean Air Act. Approximately seventeen petitions for review of the endangerment finding have been consolidated for consideration by the D.C. Circuit.

States and Cities

• WCI Implementing Legislation Fails In Oregon, Washington. Proponents of the Western Climate Initiative (WCI), a regional GHG cap-and-trade program originally comprised of seven western states and four Canadian provinces, failed to secure passage of implementing legislation before the end of the legislative sessions in Oregon and Washington. In the absence of the implementing legislation, neither state will be able to participate when the trading program begins in 2012. The governors of both states supported the implementing legislation, but it appears that concerns about the economy overcame this support. The two states remain partners in the regional cap-and-trade program and will continue to support its development. To date, only California, New Mexico, British Columbia, Ontario and Quebec have passed legislation enabling participation at the 2012 start date.
• New Mexico Environmental Agency Holds Hearings on WCI Backup Plan. The New Mexico Environmental Improvement Board held hearings on a state-only emissions-reduction plan, which is intended as a backup plan to the WCI. Presented by a coalition of environmental groups, the proposed plan would begin in 2012 and would mandate three percent annual emission reductions through 2020 from utilities and oil and gas facilities that emit greater than 25,000 tons of GHGs per year. If adopted, the plan would go into effect if neither the WCI nor a national emissions trading program begins by 2012 or if trading volumes for the regional trading program do not meet the 100 million tons per year threshold established by the EIB as a prerequisite for the state's participation.
• NY Governor Vetoes GHG Measurement and Reporting Bills. New York Governor David Patterson (D) vetoed a pair of bills focused on the measurement and reporting of GHG emissions in the state. The first bill would have mandated that the state Department of Environmental Conservation establish a GHG emission calculation methodology for public and commercial use. The second bill would have required annual reporting of GHG emission by state agencies. In rejecting the legislation, Gov. Patterson noted that he was not opposed to the purpose of the legislation, but that the two bills were duplicative of existing efforts to develop a state climate change action plan.

Industry and NGOs

• BlueGreen Alliance Launches National Campaign for Climate Legislation. A coalition of environmental organizations and labor unions, the BlueGreen Alliance, has launched a nationwide publicity campaign intended to demonstrate public support for clean energy and climate change legislation. The campaign includes a series of rallies in thirty cities around the country, emphasizing the potential for climate change legislation to create employment in the clean energy industries. Members of the BlueGreen Alliance include Communications Workers of America, Natural Resources Defense Council, Service Employees International Union, Laborers' International Union of North America, Utility Workers Union of America, American Federation of Teachers, Amalgamated Transit Union and Sheet Metal Workers' International Association.

Studies and Reports

• Study Projects Antarctic Ice Loss. Research published in the Proceedings of the National Academy of Sciences models the likely response of Antarctica to rising atmospheric greenhouse gas concentrations during the 21^st Century. The research reports that observed Southern Ocean surface temperature warming during the second half of the 20^th Century was associated with an intensified hydrological cycle in Antarctic region; this intensified cycle increased snowfall and actually led to an increase in Antarctic sea ice. However, as atmospheric greenhouse gas levels continue to rise during the 21^st century, the research shows accelerated warming in the Southern Ocean and increased rainfall leading to a decline in Antarctic sea ice. The study's abstract is available at http://www.pnas.org/content/early/2010/08/09/1003336107.abstract.

International

• US, Canada and Mexico to Integrate GHG Monitoring, Reporting and Verification. At the annual Commission for Environmental Cooperation (CEC) meeting, representatives of the United States, Canada and Mexico announced an initiative under which three nations would develop common standards for GHG monitoring, reporting and verification. The goal of the initiative is to facilitate the develop of an international climate change agreement. The CEC is an organization created by the three nations to address common environmental issues.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.