1. 2 regulationstatus first phase ghg regulation (endangerment finding, ghg permitting) rules...

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Assessing the Impact of the Elections on Energy and the Environment Troutman Sanders Webinar November 16, 2012 Peter Glaser 202.274.2998 [email protected] m TROUTMAN SANDERS LLP 401 9 th Street, NW Suite 1000 Washington, DC 20004 George Sugiyama 202.274.2840 george.sugiyama@troutmansanders .com 1

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1

Assessing the Impact of the Elections on

Energy and the Environment Troutman Sanders Webinar

November 16, 2012

Peter Glaser

202.274.2998

[email protected]

TROUTMAN SANDERS LLP

401 9th Street, NW

Suite 1000

Washington, DC 20004

George Sugiyama

202.274.2840

[email protected]

2

The First-Term EPA Power Sector Agenda

• EPA, 1/12/10 outline of priorities: “develop a comprehensive strategy for a cleaner and more efficient power sector, with strong but achievable reduction goals for SO2, NO2, mercury and other air toxics.”

• CSAPR Proposal, Regulatory Preamble: “[i]n furtherance of this priority goal, and to respond to statutory and judicial mandates, EPA is undertaking a series of regulatory actions over the course of the next 2 years that will affect the power sector in particular.” EPA intent is “creation of a clean, efficient, and completely modern power sector.”

• Multiple, overlapping rules aimed at coal plants.

3

How They Did

Regulation Status

First phase GHG regulation (endangerment finding, GHG permitting)

Rules adopted. Affirmed on appeal. Petitions for rehearing pending.

CSAPR (interstate transport of SO2 and NOx) Rules adopted. Overturned on appeal. Petitions for rehearing pending.

UMACT (hazardous air pollutants) Rules adopted. On appeal.

Regional haze -East: compliance with CSAPR constitutes compliance with retrofit requirements-West: FIPs in certain states

-Rules adopted, but on hold pending final judicial action.-Litigation.

Coal ash Rules proposed.

4

How They Did

Regulation Status

316(b) cooling water intake structures Rules proposed.

Ambient air quality standards SO2 and NO2 final, affirmed on appeal. PM2.5 proposed, not yet final. Ozone not yet proposed.

GHG new source performance standards (NSPS) for power plants

-Rule proposed but not yet final for new plants. ---Rule not yet proposed for modified and existing (not modified) powerplants.

Effluent Guidelines No proposal.

5

Not As Much Progress as They Wanted

• Pre-election slow-down in rulemaking

• Numerous regulatory actions piled up in queue and will now be released

6

Log Jam Is About to Break

• “War on coal” was an election issue. Will EPA and White House declare they have received a mandate to move aggressively?

• Will Sandy reinforce President’s view that climate change must be decisively addressed?

-Victory speech: build a country “that isn’t threatened by the destructive power of a warming planet.”

- Wednesday’s press conference: will move forward on climate change, but “If the message right now is we are going to ignore jobs and growth simply to go after climate change, I don’t think the American people are going to go for that. I won’t go for that."

• Delays from turnover in EPA staff?

7

Agenda for Next Four Years: Finish the Job

Regulation EPA Goal Timing

CSAPR Reverse court decision or replace CSAPR with something comparable

Court action on rehearing early next year

UMACTExisting units

New Units

-Convince court to affirm on appeal-Finalize new rule

-Court decision expected 1st Q 2014-3/13

Coal Ash Finalize rule ?

316(b) Finalize rule Consent decree deadline of June 2012

8

Agenda for Next Four Years: Finish the Job

Regulation EPA Goal Timing

Regional hazeEastWest

-Depends on CSAPR-Defend FIPs or settle

-Depends on CSAPR2013-14

Ambient air quality standards -Finalize PM2.5 NAAQS-Propose and finalize ozone NAAQS-Implementaton

-Mid-December 20122013-14

GHG NSPS -Finalize new unit rule

-Propose and finalize rule for existing and modified units

-Probably sooner rather than later-Probably 2013

Effluent Guidelines Finalize rule Proposal in next few months?

9

Major Things to Watch For

• If a new Administrator, who will it be? Ditto other senior EPA staff.

• CSAPR: will court decision stand and, if so, what will replacement rule look like?

• UMACT: what will EPA do on environmental parties’ reconsideration petition on PM standard?

• NAAQS: how aggressive will EPA be on PM2.5 and ozone?

• Will EPA show moderation on coal ash, 316(b), and effluent guidelines?

• What does EPA do on GHG NSPS for existing EGUs and refineries…and then what does EPA does about all of the other petitions for regulating GHG emissions throughout economy?

10

Maryam BrownChief CounselSubcommittee on Energy & PowerHouse Energy & Commerce Committee

11

Patrick J. McCormick IIIRepublican Special CounselCommittee on Energy & Natural ResourcesUnited States Senate

12

George SugiyamaEnvironmental & Natural Resources Group, Troutman Sanders LLPChief Minority Counsel, Senate Committee on Environment & Public Works, 2009-2012