1. E Executive Director’s Report National Association of Clean Air Agencies Fall Membership Meeting Cleveland, Ohio October 3, 2011 S. William Becker, NACAA

2. What I Will Cover  Congress’ Agenda  Energy Tax Prevention Act of 2011  FY 2012 Appropriations (Funding and Riders)  Boilers and Cement Kiln Legislation  TRAIN Act  Coarse PM NAAQS  Clean Energy Standard  Outer Continental Shelf Permitting  Transportation  Congressional Review/Limitations

3. Congress’ Agenda  House Majority Leader Eric Cantor’s (R-VA) “Upcoming Jobs Agenda”  These rules are from a “list of the 10 most harmful job-destroying regulations that our committee chairmen have identified, as well as a selective calendar for their repeal. These regulations are reflective of the types of costly bureaucratic handcuffs that Washington has imposed upon business people who want to create jobs”  Utility MACT and CSAPR – week of September 19  Boiler MACT – week of October 3  Cement MACT – week of October 3  Ozone Rule – winter  Farm Dust – winter  Greenhouse Gases (NSPS) – winter

4. Energy Tax Prevention Act of 2011  House approved (4/7/11) H.R. 910 by a vote of 255-172  The bill strips EPA’s authority under the CAA to regulate GHGs, repealing or prohibiting, among other rules:  “Endangerment Finding”  EPA’s GHG permitting program (including the “Johnson Memo” and “Tailoring Rule”)  NSPS for GHGs  California’s and other states’ programs to adopt clean car standards for GHGs  EPA’s program to set future fuel economy standards  EPA’s GHG mandatory reporting rule  Senator Inhofe (R-OK) introduced companion bill, S.482; referred to EPW Committee

5. FY 2012 Interior, Environment, and Related Agencies Appropriations Bill  EPA’s budget bill (H.R. 2584) was reported out of the House Appropriations Committee on 7/12/11; no action in Senate  Debated on the House floor but not voted upon  Includes numerous spending and legislative policy riders affecting the CAA  The bill imposes prohibitions on EPA to (among others):  Propose or promulgate regulations to reduce GHGs from stationary sources (e.g., NSPS, GHG permitting, etc.)  Finalize GHG regulations for motor vehicles after model year 2016

6. H.R. 2584 – FY 2012 Interior, Environment and Related Agencies Appropriations Bill  Among others, prohibitions on EPA to:  Grant California a waiver to adopt GHG vehicle standards  Implement the Cross-State Air Pollution Rule  Finalize the Utility MACT  Implement the 2010 Cement Kiln MACT  Require offshore drilling operations to comply with NAAQS except onshore (i.e., adopts the OCS bill reported out of the E&C Committee)  Revise the PM coarse NAAQS  Regulate ammonia under the secondary NAAQS for NO x and SO 2  Collect GHG reporting information from the largest CAFOs  Prevent implementation of any flexible air permitting program (i.e., Texas)

7. FY 2012 Appropriations, H.R. 2584: STAG Grants

8. Boilers and Cement Kiln Legislation (H.R. 2250 and H.R. 2861)  House Energy and Commerce Committee reported two bills significantly weakening MACT standards under the CAA  H.R. 2250 – “The EPA Regulatory Relief Act of 2011” stays regulations for ICI boilers issued on 3/21/2011  H.R. 2681 – “Cement Sector Regulatory Relief Act of 2011” rescinds the Portland Cement standards issued on 9/9/10  Both bills:  Delay the promulgation of new rules for 15 months  Extend compliance deadlines to at least 5 years  Require EPA to promulgate the “least burdensome” standards

9. Transparency in Regulatory Analysis of Impacts on the Nation (TRAIN) Act  House approved TRAIN Act on 9/23/11; The bill, among other things:  Directs EPA to set NAAQS considering “feasibility and cost,” overturning 40 years of CAA implementation and a decision by the U.S. Supreme Court that these standards should be based on health considerations alone  Blocks EPA’s “Cross-State Air Pollution Rule,” and prevents the agency from issuing a new rule for at least 5 years and stops implementation for at least an additional 3 years; additionally, by barring reliance on modeling, the bill will prevent EPA from ever issuing a transport rule (according to EPA and others)  Prevents EPA from issuing MACT standards for power plants for at least 2 years and stops implementation for at least an additional 5 years  Removes statutory deadlines for ever issuing either of these rules  Redefines and weakens MACT requirements under the CAA by examining the best performing facilities “in the aggregate” for all toxics

10. Coarse Particulate Matter NAAQS  H.R. 1633 and S. 1528, introduced by Rep. Kristi Noem, R-SD, and Sen. Mike Johanns, R-NE, respectively (“Farm Dust Regulation Prevention Act of 2011”)  Prohibits EPA, for one year, from proposing, finalizing, implementing or enforcing any revision to the primary or secondary NAAQS for PM greater than 2.5 µm/m 3  Exempts “nuisance dust” from CAA and PM regulation, with exceptions (e.g., imposes benefit/cost test)  Defines “nuisance dust” as PM generated from natural sources, unpaved roads, agriculture activities, earth moving or other activities

11. Clean Energy Standard  Senators Bingaman (D-NM) and Murkowski (R-AK) issued a “white paper” soliciting comments on the design of a Clean Energy Standard (CES)  President Obama expressed support in his 2010 State of the Union address for a CES that would require 80% of nation’s electricity to come from clean energy sources by 2035  NACAA submitted comments supporting a federal CES that reduces both GHGs and conventional air pollutants and does not preempt state RPS  Legislative outcome is uncertain

12. Outer Continental Shelf Permitting  H.R. 2021, Jobs and Energy Permitting Act, introduced by Cory Gardner (R-CO), passed House 6/22/11; would amend CAA OCS provisions (Section 328) to:  Exempt air permits issued to projects on OCS from EAB review  Require EPA to take final action on the permits within 6 months of receipt of completed application  Limit applicable air quality impacts solely to those in corresponding onshore area  Exempt emissions from vessels associated with or servicing an OCS from permit’s control requirements  Determine that an OCS source is established when drilling begins and ceases to exist when drilling ends  Companion bill, S. 1226 – “Offshore Energy and Jobs Permitting Act of 2011” – introduced by Senator Lisa Murkowski (R-AK); referred to EPW

13. Transportation  SAFETEA-LU expired on September 30, 2009  House and Senate approved (week of 9/10/11) eighth short-term extension, at current funding levels, until 3/31/12  House Action  Transportation and Infrastructure Committee Republicans released (7/7/11) a summary of a reauthorization proposal – oppose short-term reauthorization 6-year bill funded at $230 billion ( existing SAFETEA-LU funded at $286 billion over 6 years)  Senate Action  Senate EPW leaders Boxer (D-CA) and Inhofe (R-OK) released (7/19/11) an outline of bipartisan reauthorization legislation – oppose 6-year reauthorization 2-year bill funded at about $109 billion  Neither summary/outline specifically addresses CMAQ  House and Senate have held various reauthorization hearings, but no bills introduced yet

14. Congressional Review/Limitations  REINS Act (“Regulations from the Executive In Need of Scrutiny”)  No regulation with impacts greater than $100 million will take effect unless both chambers approve the rule and President signs it into law; not limited to EPA; hearings held; unlikely to become law  Congressional Review Act (existing law)  Within 60 days of a rule’s publication, Congress can take an “up or down” simple majority vote to rescind the rule; not subject to filibuster  Legislative Riders (can occur anytime)  Riders to constrain/rescind EPA authority could be offered on any major legislative proposals (e.g., must-pass legislation such as an appropriations or an Omnibus bill)

15. For Further Information: Bill Becker Executive Director National Association of Clean Air Agencies 202-624-7864 bbecker@4cleanair.org www.4cleanair.org