A , 33Page Ilofl14

RECORD TYPE: FEDERAL (NOTES MAIL)

CREATOR:Khary I. Cauthen ( CN=Khary I Cauthen/OU=CEQ/O=EOP@Exchange [ CEQ I

CREATION DATE/TIME:28-AUG-2003 15:16: 8.00

SUBJECT: : co2 talking points sent by pa

TO:mformica~uschamber.com @ mnet ( mf rmica~uschamber.com @ mnet [ UNKNOWNREAD:UNKNOWN

TEXT:…-----------Forwarded by Kiary I. Cauthen/CEQ/EOP on 08/28/2003

03:13 PM…-- - - - - -- - - - - - -

Notice of Denial of the Petition for ]PA to RegulateGreenhouse Gas (GHG) Emissions from M tor Vehicles8/2 8/03

Action: EPA today (August 28, 2003) signed a notice denying apetition to regulate greenhouse gas e issions from motor vehicles. TheAgency is denying the petition to regilate greenhouse gas emissions frommotor vehicles for three reasons:

1) EPA lacks aut ority under the Clean Air Act toregulate C02 and other greenhouse gas s for climate change purposes;

2) The only prac ical way to reduce motor vehicleemissions of C02 is to regulate fuel ?conomy, which is a task thatCongress has already assigned to DOT; and

3) EPA believes :hat regulating greenhouse gasemissions from motor vehicles would b~ inappropriate at this time.

(See additional point3 below related to the reasons.)

In February 2002, President Bush anno nced an aggressive approach toaddressing climate change that encour ges substantial voluntary reductionsin GHG intensity and pursues fuel ecolomy improvements:

< ~ This approach sets a iational goal of reducing the GHGintensity of the U.S. economy by 18 p rcent over the next ten years. Thisstrategy sets the U.S. on a path to s ow the growth of GHG emissions and,as the science justifies, to stop and then reverse that growth.

< ~In taking prudent environmental action at home andabroad, the U.S. is advancing a reali tic and effective long-termapproach, rather than adopting costly short-term measures whose benefit isuncertain.

< ~ This policy supports 7ital climate change research, andlays the groundwork for future action by investing in science, technology,and institutions.

< ~In addition, the Pres dent=s policy emphasizesinternational cooperation and promotes working with other nations todevelop an efficient and coordinated response to global climate change.

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< ~ EPA is building effic~ent and effective market-driven

programs that address the transportation sector=s contribution to climate

change. These programs include Climate Leaders, Energy Star, Smartway and

Best Workplaces for Commuters.

< I~n February 2 02, EPA launched Climate Leaders, a

voluntary industry- government partne ship under which companies work with

EPA to evaluate their GHG emissions, set aggressive reduction goals, and

report their progress toward meeting those goals. To date, more than 40

companies from almost all the most en rgy-intensive industry sectors have

joined.

< ~ EPA=s Energy Star is a voluntary labeling program

that provides critical information to businesses and consumers about the

energy efficiency of the products the~ purchase. Reductions in GHG

emissions from Energy Star purchases were equivalent to removing 10

million cars from the road last year.

< ~The Smartway transport partnership works with thetrucking and railroad industry to achieve cleaner and more efficientvehicles and locomotives by adopting pollution control and energy saving

technologies. Smartway partners will develop and deployfuel-efficient technologies and practices to achieve substantial fuel

savings and emission reductions. Idling strategies alone have the

potential to save 1 billion gallons ol diesel fuel per year, while

reducing greenhouse gases by 2.5 MMTC1 and NOx by 200,000 tons.

< ~ Best Workplace for Commuters offers innovative

solutions to commuting in order to re uce vehicle trips and miles

traveled. We expect that 3.7 million employees will be covered by this

program in 2005.

< ~ EPA will also play a leadership role in advancing fuel

cell vehicle and hydrogen fuel techno ogies and policies to support the

U.S. environmental, energy and nation 1 security goals.

Additional talking points relating to (1), (2) and (3) above:<No CAA provision spec fically authorizes climate change

regulation. A few sections mention c imate change, but these are limited

to non-regulatory measures.

<Congress has taken up the issue of climate changenumerous times over the past few year , but has not enacted legislation

that gives EPA authority to regulate HG emissions for climate change

purposes.

<Regulation of C02 and other GH~s for clim ate change

purposes would have enormous economic practical, and societalimplications, which certainly were no~ envisioned when the CAA was enacted

and amended.

<Under these circumsta ces, it would be inappropriate for

EPA to search for authority to regula e in an existing statute that was

not specifically designed or enacted :o deal with the climate change

issue.

< ~[In case questions cone up concerning the ACannon Memo@)in determining that the CAA does not authorize regulation to address

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climate change, EPA adopted the conclusion reached by its current GeneralCounsel in a legal opinion reviewing relevant legal authorities andwithdrawing the opinion and statements of two former EPA General Counselswho served in the prior Administration.

<Congress entrusted regulation of motor vehicle fueleconomy to DOT, not EPA. C02 emission standards set by EPA under the CAA

would effectively supplant fuel econoy standards set by DOT under theEnergy Policy Act, because the only practical way of reducing vehicle C02

emissions is to increase fuel economy.

< ~Establishing GHO emission standards for motor vehicles at

this time would be premature,-because it would require EPA to makescientific and technical judgments without the benefit of the studiesbeing developed to reduce uncertainties and advance technologies.

< ~Establishing regulations now would result in an

inefficient, piecemeal approach to addressing the climate change issue,because motor vehicles are only one of many categories of GHO emissionsources.

< ~Unilateral EPA regulation of motor vehicle GHG emissionscould also hamper U.S. efforts to persuade key developing countries toreduce the GHG intensity of their economies.

Background of the Petition:

$ The petition was filec by the International Center forTechnology Assessment and 18 other technology, citizen and environmentaladvocacy groups October 20, 1999.

$ The petition asserted that EPA is obligated to regulategreenhouse gas (GHG) emissions from m tor vehicles under Section 202(a) (1)of the Clean Air Act.

$ Section 202(a) (1) pro ides that Athe Administrator [ofEPA] shall by regulation prescribe ... in accordance with the provisionsof [section 202], standards applicable to the emission of any airpollutant from any class or. classes of new motor vehicle . .. , which in hisjudgment cause, or contribute to, air pollution which may reasonably beanticipated to endanger public health or weltfare.@

$ Petitioners claim that EPA has a mandatory duty to

regulate GHG emissions from motor vehicles under Section 202 because EPAhas already determined that:

$ C02 and other GHGs are air pollutants under theClean Air Act; and

$ GHG emissions from motor vehicles contribute topollution that may reasonably be anticipated to endanger public health orwelfare.

To the contrary, EPA has not made findings that trigger amandatory duty under the CAA, even as uming the CAA authorized regulationto address climate change.

$ ICTA and two other orcanizations (Sierra Club and

Greenpeace) have filed a lawsuit in t e U.S. District Court for DC seekingto compel EPA to respond to the petit-on. Rather than engage in needlessand unproductive litigation, EPA has (ecided to take final action on thepetition at this time.

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(See attached file: C02 petition talkirg pts 8-28.2.wpd)

- ~~~~~ATTACHMENT 1 =

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08100 D3

- ~~~~~END ATTACHMENT 1=

file://D:\133-Lyyomi0O3 ceq.txt 1/5/2004

* em~~~AS 1en4Notice of Denial of the Petition for EPA to Regulate

Greenhouse Gas (GHG) Emissions from Motor Vehicles/28/03

Action: EPA today (August 28, 2003) signed a notice denying a petition to regulate

greenhouse gas emissions fror motor vehicles. The Agency is denying the petition

to regulate greenhouse gas emissions from motor vehicles for three reasons:

1) EPA lacks authority uer the Clean Air Act to regulate C02 and other

greenhouse gases for climate change purposes;

2) The only practical way to reduce motor vehicle emissions Of CO2 is to

regulate fuel economy, which is a task that Congress has already assigned

to DOT; and

3) EPA believes that reguating greenhouse gas emissions from motor vehicles

would be inappropriate at this time.

(See additional points below r -lated to the reasons.)

In February 2002, President Bush announ ed an aggressive approach to addressing climate

change that encourages substantial volunt ry reductions in GHG intensity and pursues fuel

economy improvements:

This approach sets a national loal of reducing the GHG intensity of the U.S.

economy by 18 percent over the next ten years. This strategy sets the U.S. on a

path to slow the growth of GI G emissions and, as the science justifies, to stop and

then reverse that growth.

In taking, prudent environmental action at home and abroad, the U.S. is advancing a

realistic and effective long-tem approach, rather than adopting costly short-term

measures whose benefit is un ertain.

This policy supports vital cli ate change research, and lays the groundwork for

future action by investing in science, technology, and institutions.

In addition, the President's p licy emphasizes international cooperation and

promotes working with other nations to develop an efficient and coordinated

response to global climate change.

EPA is building efficient and effective market-driven programs that address the

transportation sector's contri uton to climate change. These programs include

Climate Leaders, Energy Sta., Smartway and Best Workplaces for Commuters.

In February 2002, EF A launched Climate Leaders, a voluntary industry-

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government partnership under which companies work with EPA to evaluate

their GHG emissions, st aggressive reduction goals, and report their

progress toward mneetin those goals. To date, more than 40 companies

from almost all the most energy-intensive industry sectors have joined.

EPA's Energy Star is a voluntary labeling program that provides critical

information to business s and consumers about the energy efficiency of the

products they purchase Reductions in GUG emissions from Energy Star

purchases were equival -nt to removing 10 million cars from the road last

year.

The Smartway transpol partnership works with the trucking and railroad

industry to achieve cle ner and more efficient vehicles and locomotives by

adopting pollution con ro and energy saving technologies. Smartway

partners will develop ad deploy fuel-efficient technologies and practices

to achieve substantial f el savings and emission reductions. Idling

strategies alone have t e potential to save 1 billion gallons of diesel fuiel per

year, while reducing geenhouse gases by 2.5 MMTCE and NOx by

200,000 tons.

Best Workplace for Cc niniuters offers innovative solutions to commuting in

order to reduce vehicle trips and miles traveled. We expect that 3.7 million

employees will be coy red by this program in 2005.

EPA will also play a leadership role in advancing fuel cell vehicle and hydrogen

fuel technologies and policies to support the U.S. environmental, energy and

national security goals.

Additional talking points relating to (1), ( ) and (3) above:

No CAA provision specifically authorizes climate change regulation. A few

sections mention climate cha ge, but these are limited to non-regulatory measures.

Congress has taken up the iss ae of climate change numerous times over the past

few years, but has not enacted legislation that gives EPA authority to regulate GHG

emissions for climate change purposes.

Regulation of C02 and other GHGs for climate change purposes would have

enormous economic, practice I, and societal implications, which certainly were not

envisioned when the CAA w is enacted and amended.

Under these circumstances, i 'would be inappropriate for EPA to search for

authority to regulate in an existing statute that was not specifically designed or

enacted to deal with the climate change issue.

Cd31F 2 as 4

[In case questions come up c ncerning the "Cannon Memo"] In determining

that the CAA does not authorie regulation to address climate change, EPA adopted

the conclusion reached by its cirrent General Counsel in a legal opinio reviewing

relevant legal authorities and withdrawing the opinion and statements of two former

EPA General Counsels who se ved in the prior Administration..

Congress entrusted regulation )f motor vehicle fuel economy to DOT, not EPA.

C02 emission standards set b~ EPA under the CAA would effectively supplant fuel

economy standards set by DO" under the Energy Policy Act, because the only

practical way of reducing vehi le C02 emissions is to increase fuel economy.

Establishing GHG emission st mdards for motor vehicles at this time would be

premature, because it would rc quire EPA to make scientific and technical

judgments without the benefit ofthe studies being developed to reduce

uncertainties and advance tec nologies.

Establishing regulations now, ould result in an inefficient, piecemeal approach to

addressing the climate change issue, because motor vehicles are only one of many

categories of GHG emission s urces.

Unilateral EPA regulation of motor vehicle GUG emissions could also hamper U.S.

efforts to persuade key devel ping countries to reduce the GHG intensity of their

economies.

Background of the Petition:

The petition was filed by the .ntemational Center for Technology Assessment and

18 other technology, citizen ad environmental advocacy groups October 20, 1999.

* The petition asserted that EPA is obligated to regulate greenhouse gas (GHG)

emissions from motor vehicle s under Section 202(a)(1) of the Clean Air Act.

* Section 202(a)(1) provides that "the Administrator [of EPA] shall by regulation

prescribe ... in accordance wit the provisions of [section 202], standards applicable

to the emission of any air pollutant from any class or classes of new motor vehicle

...which in his judgment cause, or contribute to, air pollution which may

reasonably be anticipated to endanger public health or welfare."

* Petitioners claim that EPA h sa mandatory duty to regulate GHG emissions from

motor vehicles under Section 202 because EPA has already determined that:

* C02 and other GHGE are air pollutants under the Clean Air Act; and

* GHG emissions fror motor vehicles contribute to pollution that may

t~e3 cr3 4

reasonably be anticipat d to endanger public health or welfare.

To the contrary, EPA has not ad findings that trigger a mandatory duty under the

CAA, even assuming the CA authorized regulation to address climate change.

ICTA and two other organizat ons (Sierra Club and Greenpeace) have filed a

lawsuit in the U.S. District Co rtfor DC seeking to compel EPA to respond to the

petition. Rather than engage i ineedless and unproductive litigation, EPA has

decided to take final action on the petition at this time.

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