EFO 2019 Air Quality Regulatory Updates Robert D. Singletary - - PowerPoint PPT Presentation

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EFO 2019 Air Quality Regulatory Updates Robert D. Singletary - - PowerPoint PPT Presentation

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EFO 2019 Air Quality Regulatory Updates Robert D. Singletary robert.singletary@crowedunlevy.com October 9, 2019 EF EFO 20 2019 9 Air Air Qua Quality R lity Regul egulat ator ory y Updat pdate Upd pdat ates es on on three

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SLIDE 1

EFO 2019 – Air Quality Regulatory Updates

Robert D. Singletary robert.singletary@crowedunlevy.com October 9, 2019

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SLIDE 2

Upd pdat ates es on

  • n three t

three top

  • pics

ics:

  • CEMS Regulatory Interpretation
  • Clean Power Plan/Affordable Clean Energy Rule
  • California Fuel Standard

»

EF EFO 20 2019 9 – Air Air Qua Quality R lity Regul egulat ator

  • ry

y Updat pdate

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SLIDE 3

Ti Timeline meline:

  • Ap

April ril 18, 8, 20 2017 7 - DEQ’s Tulsa office requested clarification from EPA R6 on:

  • Reporting of CMS Downtime
  • Calculation of Hourly Average
  • Ju

June ne 26 26, 20 , 2017 7 - EPA R6 responded to DEQ and issued a Regulatory Interpretation

  • Su

Summ mmer/F er/Fall all 20 2018 - DEQ requested EPA R6 to withdraw the Regulatory Interpretation

CEM CEMS REG REGULA ULATOR ORY Y IN INTER TERPRET PRETATION TION

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SLIDE 4

Ti Timeline meline (C (Cont.)

  • nt.):
  • Sp

Spring ring 20 2019 9 - DEQ continued working with EPA R6 to get the Regulatory Interpretation withdrawn

  • Ma

March ch 18, 8, 20 2019 9 - Regulatory Interpretation was published in the Federal Register

  • Regulatory Interpretation for Continuous Monitoring System Downtime and

Emission Reporting, Control No. 1700037, 84 Fed.Reg. 9783

»

CEM CEMS REG REGULA ULATOR ORY Y IN INTER TERPRET PRETATION TION

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SLIDE 5

Ti Timeline meline (C (Cont.)

  • nt.):
  • Ma

May 17, 7, 20 2019 9 - Petition for Review challenging the Regulatory Interpretation filed in D.C. Circuit

  • American Forest & Paper Association, Inc. and American Wood Council v. EPA,

Case No. 19-1108 (D.C. Cir.)

  • Ju

June ne 13, 3, 20 2019 9 - EPA withdrew the Regulatory Interpretation

  • EPA letter to DEQ
  • EPA agreed to “post disclaimer” to ADI

»

CEM CEMS REG REGULA ULATOR ORY Y IN INTER TERPRET PRETATION TION

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SLIDE 6

Les Lesso sons ns:

  • Need to monitor regulatory developments
  • Example of how Regulators and Regulated Industry can work

together to resolve common concerns

»

CEM CEMS REG REGULA ULATOR ORY Y IN INTER TERPRET PRETATION TION

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SLIDE 7

Cl Clean ean Power er Pl Plan an:

  • Published in the Federal Register on October 23, 2015
  • Purpose was to reduce CO2 emissions from existing power plants
  • BSER considered on-site and off-site measures (3 building blocks) to set

National CO2 emission standards

  • State specific reduction targets
  • BSER based (in part) on “Outside the fenceline” measures

»

CL CLEAN EAN PO POWE WER PLAN R PLAN/AFF /AFFORD ORDABLE CLEA ABLE CLEAN N EN ENER ERGY Y RULE ULE

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SLIDE 8

Clea lean n Power er Plan lan:

  • La

Laws wsuits uits -

  • State of West Virginia, et al. v. EPA, Case No. 15-1363

(consolidated with 38 other cases)(D.C. Cir.)

  • State of North Dakota v. EPA, Case Nos. 15-1363 and 17-

1014 (consolidated with 16 other cases)(D.C. Cir.)

»

CL CLEAN EAN PO POWE WER PLAN R PLAN/AFF /AFFORD ORDABLE CLEA ABLE CLEAN N EN ENER ERGY Y RULE ULE

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SLIDE 9

States Participating in Clean Power States Participating in Litigation Consolidated Petitions: West Virginia et al. v. EPA et al., D.C. Circuit No. 15-1363

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SLIDE 10

Cl Clean ean Power er Pl Plan an (C (Cont.)

  • nt.):
  • Feb

ebruar ruary y 9, 9, 20 2016 6 - SCOTUS stay

  • Stayed implementation/enforcement of CPP until legality resolved
  • First time SCOTUS stayed a matter pending before the D.C. Circuit
  • Considerations - “likelihood of success on the merits” and “irreparable harm”
  • Se

Sept ptemb ember er 27, 7, 20 2016 6 - D.C. Circuit held en banc oral argument

CL CLEAN EAN PO POWE WER PLAN R PLAN/AFF /AFFORD ORDABLE CLEA ABLE CLEAN N EN ENER ERGY Y RULE ULE

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SLIDE 11

Clea lean n Power er Plan lan (C (Cont.)

  • nt.):
  • D.C

D.C. . Circuit cuit st stay y – Court of Appeals stayed the case on April 28, 2017, based on current administration’s intent to replace CPP

  • Ex

Exec ecutiv utive e Or Order der 1378 783 3 – March 28, 2017

Specifically directed EPA to review and initiate reconsideration proceedings to “suspend, revise, or rescind” the CPP “as appropriate and consistent with law.”

  • Fede

ederal ral Regi egist ster er Noti tice ce – March 28, 2017

Initiating review of CPP

CL CLEAN EAN PO POWE WER PLAN R PLAN/AFF /AFFORD ORDABLE CLEA ABLE CLEAN N EN ENER ERGY Y RULE ULE

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SLIDE 12

Af Affor

  • rdable

dable Clea lean n En Energy ergy Rul ule:

  • Pub

ublished lished - Federal Register on July 8, 2019 (84 Fed.Reg. 32520)

  • Ef

Effectiv ective - September 6, 2019

  • Allows States to establish GHG emission standards using BSER

measures limited to on-site heat-rate improvements for existing coal- fired power plants

  • No off-site measures required or considered

CL CLEAN EAN PO POWE WER PLAN R PLAN/AFF /AFFORD ORDABLE CLEA ABLE CLEAN N EN ENER ERGY Y RULE ULE

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Af Affor

  • rdable

dable Cl Clean ean En Energy ergy Rul ule e (C (Cont.)

  • nt.):
  • CPP

PP Lawsuits wsuits Di Dism smisse issed d - D.C. Circuit dismissed CPP challenges as moot on September 17, 2019

  • ACE

E Rul ule e la lawsuits wsuits st status atus -

  • Deadline to Challenge – September 6, 2019
  • Numerous lawsuits filed
  • Leg

egal al debat ebate e – Legal challenges for both CPP and ACE Rule center on interpretation of BSER

  • Precedent on scope of EPA authority under§111(d)?
  • 2020

2020 Pr Presidential esidential El Election ection

  • Continued

ntinued Reg egulat ulator

  • ry

y Uncer ncertaint tainty

CL CLEAN EAN PO POWE WER PLAN R PLAN/AFF /AFFORD ORDABLE CLEA ABLE CLEAN N EN ENER ERGY Y RULE ULE

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One One Na Natio tional nal Pr Program

  • gram Rul

ule -

  • Promul
  • mulgat

gated ed - EPA/NHTSA - September 19, 2019

  • Pu

Purpos pose – Provide nationwide uniform fuel economy and GHG emission standards for automobile and light duty trucks Fede ederal ral Preem reempti ption

  • n -
  • When State law and Federal law conflict, Federal law preempts state

law due to the Supremacy Clause (U.S. Const. art. VI., § 2)

CAL CALIF IFORNIA ORNIA FU FUEL EL STAND ANDARD ARD

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SLIDE 15

St Statu atutor

  • ry

y Provisions visions –

  • Clea

lean n Ai Air r Act ct § 20 209( 9(a) a) provides:

No State . . . shall adopt or attempt to enforce any standard relating to the control

  • f emissions from new motor vehicles or new motor vehicle engines . . . .
  • Statute authorizing DOT to establish average fuel economy standards

(49 U.S.C. § 32919(a)) provides:

When an average fuel economy standard prescribed under this chapter is in effect, ... a State may not adopt or enforce a law or regulation related to fuel economy standards or average fuel economy standards for automobiles . . . .

CAL CALIF IFORNIA ORNIA FU FUEL EL STAND ANDARD ARD

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Aut utho hority rity to G

  • Gra

rant nt Wai aiver er –

  • Clean Air Act § 209(b)(1) provides:

The Administrator shall . . . waive application of this section to any State which has adopted standards . . . for the control of emissions from new motor vehicles or new motor vehicle engines prior to March 30, 1966, if the State determines that the State standards will be, in the aggregate, at least as protective of public health and welfare as applicable Federal standards. . No No suc uch h wai aiver er shal all l be granted if the Administrator finds that –

  • A. the determination of the State is arbitrary and capricious,

B.

  • B. such

h Sta State e do does es no not nee t need su d such h Sta State e sta tandar ndards ds to

  • meet

eet com

  • mpellin

pelling g an and d ext xtra raor

  • rdina

dinary y cond

  • nditions

itions, or

  • C. such State standards and accompanying enforcement procedures are not

consistent with section 7521(a) of this title.

CALIFORNIA FUEL STANDARD

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EPA A Act ction ion on

  • n Cal

alif ifor

  • rnia

nia Req equests uests for

  • r Wai

aiver ers s (G (GHG HGs) s) –

  • Ma

March ch 6, 6, 20 2008 08 – Request DENIED

  • Bush EPA denied California’s request for a waiver of CAA preemption for

California’s GHG emission standards for MY 2009-2016 vehicles ▪ Basis – California did not meet standard regarding co compelli pelling ng and d extraor traordinar dinary y co conditions ditions

  • Ju

July ly 8, 8, 20 2009 09 – Previous denial reversed, request GRANTED

  • Obama EPA withdrew previous administration’s denial
  • Ja

Janu nuar ary 9, y 9, 20 2013 3 – Request GRANTED

  • Obama EPA granted CARB’s request for waiver to enforce its Advanced Clean Car

program regulations (GHG/ZEV standards for MY 2021-2025).

CAL CALIF IFORNIA ORNIA FU FUEL S EL STAND ANDARD ARD

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EP EPA A Actio ction n on

  • n Cali

alifornia

  • rnia Req

equests uests for

  • r Wai

aiver ers s (GHGs GHGs)( )(cont.) cont.) –

  • Sep

September ember 19, 9, 20 2019 9 – Previous approval withdrawn, request DENIED

  • Trump EPA withdrew waiver granted by Obama EPA for MY 2021-2025 GHG/ZEV standards

▪ Avoid patchwork fuel economy requirements ▪ Not t compe pelling lling and nd ext xtrao raordin dinar ary y conditi nditions

  • ns
  • Two Actions

▪ Withdrew California’s existing waiver for GHG emission standards; and ▪ Finalized NHTSA’s determination that EPCA preempts State GHG and ZEV programs, because they rela elated ed to fuel economy standards.

  • No Action on Standard

▪ Effectively locks in MY 2020 levels until the Safer Affordable Fuel Efficient (“SAFE”) Vehicle Rule is released

CAL CALIF IFORNIA ORNIA FU FUEL S EL STAND ANDARD ARD

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SLIDE 19

EP EPA A Actio ction n on

  • n Cali

alifornia

  • rnia Req

equests uests for

  • r Wai

aiver ers s (GHGs GHGs)( )(cont.) cont.) –

  • Ba

Basis s for

  • r de

deni nial al - EPA found that California did not demonstrate “co compel pelling ling an and d extr traor aordinar dinary y co condi ndition tions”

  • Did not address environmental problems particular or unique to California
  • Did not address environmental problems caused by emissions particular or unique to California
  • Standards will not provide any remedy particular or unique to California
  • Waiver authority exists because of California’s uniquely difficult problems with Ozone, not GHGs
  • Waiver authority does not exist to allow California to address national and global issues (climate change)

CAL CALIF IFORNIA ORNIA FUE FUEL L STAND ANDARD ARD

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DO DOJ Pr J Prob

  • be –
  • Ju

July ly 25 25, 20 2019 9 - CARB announced voluntary agreement with Ford, Honda, BMW, and VW

  • Sidesteps current efforts to roll back Obama-era GHG and economy standards
  • Se

Sept ptemb ember er 20 2019 9 - U.S. DOJ sent information request to each Company

  • Did Companies collude with CARB to reach a deal on lower standards and violate

anti-trust requirements?

  • Cal

alif iforni

  • rnia

a Res espons ponse e –

  • Claims retribution

CAL CALIF IFORNIA ORNIA FUE FUEL L STAND ANDARD ARD

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Fede ederal ral Hi Highw ghway y Fun unds ds -

  • Se

Sept ptembe ember r 24, 4, 20 2019 9 - U.S. EPA letter to CARB

  • Numerous unapprovable SIPs submitted by California
  • Approximately 130 backlogged SIPs (1/3 of national number)

▪2008 Ozone Standard

  • Noted statutory deadlines and possible statutory consequences

▪FIP Clock ▪Reduction in Federal highway funding. “The Administrator may impose a prohibition, applicable to a nonattainment area, on the approval by the Secretary of Transportation of any projects or the awarding by the Secretary of any grants . . . .” CAA § 179(b)(1)(A)

CAL CALIF IFORNIA ORNIA FUE FUEL L STAND ANDARD ARD

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Feder ederal al Hig Highw hway y Fun unds ds (C (Cont.

  • nt.) –
  • California’s Response
  • Retaliation
  • EPA’s Unclean Hands

CAL CALIF IFORNIA ORNIA FUE FUEL L STAND ANDARD ARD

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SLIDE 23

Why Do Does es It It Ma Matt tter er? ?

  • Political Reasons
  • One National Program/One State dictating National policy
  • Cooperative Federalism/States’ Rights

CAL CALIF IFORNIA ORNIA FUE FUEL L STAND ANDARD ARD

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Contact

Robert D. Singletary (405) 234-3287 robert.singletary@crowedunlevy.com crowedunlevy.com

Oklahoma City

Braniff Building 324 North Robinson Avenue 405.235.7700

Tulsa

500 Kennedy Building 321 South Boston Avenue 918.592.9800

Dallas

Spaces McKinney Avenue 1919 McKinney Avenue 214.420.2163

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