Holland & Hart's Climate Change News

Proposed GHG Auto Emission Standards Sent to OMB For Review

By James Holtkamp

On October 14, 2011, the Environmental Protection Agency and the National Highway Traffic Safety Administration forwarded to the White House Office of Management and Budget proposed rules that would set fuel economy and greenhouse gas emission standards for model years 2017 through 2025.  The two agencies jointly prepared the rules, which would apply to passenger vehicles and light-duty trucks and would require a 54.5 miles-per-gallon standard by 2025.  The proposed rules are the result of an agreement between auto manufacturers, environmental groups, unions and the federal government which would require an increase in fuel economy of 5 percent per year for passenger vehicles and 3.5 percent per year through 2021 and 5 percent per year through 2025 for light-duty trucks.

Court Rules that Greenhouse Gas Emissions Impact on Polar Bear not Required Under Endangered Species Act

By James Holtkamp

On October 17, the federal district court in Washington D.C. vacated a “special rule” establishing certain protective measures for Polar Bear habitat under the Endangered Species Act.  U.S. Fish & Wildlife Service had indicated that it would not attempt to require reductions in greenhouse gas emissions to protect polar bears. 

Greenhouse Gas Rules for Refineries and Power Plants Delayed

By James Holtkamp

On November 21, EPA announced that it would delay the issuance of a draft New Source Performance Standard for petroleum refineries which would include greenhouse gas emission rules.  The proposed rules were to be issued by December 10 under a settlement agreement between EPA and the plaintiffs in a lawsuit intended to force the issuance of greenhouse gas rules for refineries and coal-fired power plants.  EPA is renegotiating the schedule with the environmental group litigants.

California Adopts Cap-and-Trade Rules

By James Holtkamp

On October 20, 2011, the California Air Resources Board (“CARB”) adopted the final California GHG cap-and-trade regulation.  The regulation will be implemented in two phases.  The first phase, beginning in 2013, will include all major industrial sources, including electric generation facilities.  The second, beginning in 2015, will cover fuel distributors.

California Proposes Low Carbon Fuel Standard

By James Holtkamp

On October26, the California Air Resources Board released proposed amendments to the Low Carbon Fuel Standard. The LCFS was adopted by CARB in 2009 as required by AB 32, the California Warming Solutions Act of 2006.  The LCFS is intended to reduce the carbon intensity of transportation fuels in California.  Among other things, the proposed amendments would change the method of calculation of carbon intensity of production and transportation of crude oil.   The changes include the establishment of a baseline against which the carbon intensity of crude oil would be measured.  The proposed amendments would also specify the procedures for acquiring, banking, transferring and retiring LCFS credits and to better account for growing electric vehicle use.

A public hearing on the proposed amendments will be held by CARB on December 15 and 16, 2011 in Sacramento.

BLM Considering Methane Release Limits for Coal Mines

By James Holtkamp

The U.S. Bureau of Land Management has announced that it is considering developing regulations to limit methane releases from coal mines on federal leases.  Methane is a significant safety hazard in underground coal mines and is typically released from the mine through portals and boreholes as part of the ventilation system required by federal and state mine safety rules.

State Department Suspends Decision on Keystone XL Pipeline Until Early 2013

By Maryt Fredrickson

On November 11, 2011, the U.S. Department of State (State Department) determined that it would not issue its national interest determination for the Keystone XL pipeline until at least the first quarter of 2013.  The determination had been expected by the end of 2011, resulting in, if the project were approved, an expected pipeline service date of 2013.  The primary reason cited by the State Department for this delay is a need to consider alternative routes through Nebraska.  The proposed route for the pipeline currently crosses Nebraska’s Sandhills, which recently drew opposition from Nebraska resulting in a special legislative session in Nebraska and the passage of two bills authorizing state regulation of petroleum pipelines.  This route through the Sandhills is only one of many points of opposition that have faced the Keystone XL project, which would transport crude oil produced from tar sands in Canada to refineries in the gulf coast region.  Other points of opposition include the greenhouse gas emissions associated with the production of crude oil from tar sands and the proximity of the pipeline to the Ogallala aquifer. 

GHG Legislative Summary - 112th U. S. CONGRESS

By Nils Johnson

After a lengthy discussion on Capital Hill as to what the so called Super Committee would do to reduce the deficit, the Committee failed to reach agreement by its November 23, 2011 due date.  Charged with producing at least $1.5 trillion in additional deficit reduction (beyond the reduction in the legislation that created the Committee) over the next ten years the evenly split Republican and Democrat Committee could not reach agreement on spending reductions and revenue producers.  Among their choices were raising taxes; tax reforms, such as simplifying the tax code and eliminating some tax breaks and loopholes; military spending cuts; and measures to reform and slow the growth of entitlement programs.

EPA Inspector General Report Questions Procedure Followed by EPA in Making GHG Endangerment Finding

By Emily Schilling

In a September 28 report titled “Procedural Review of EPA’s Greenhouse Gases Endangerment, Finding Data Quality Processes,” EPA’s Inspector General (“IG”) raised questions about the process followed by EPA in making its endangerment finding for greenhouse gases (“GHG”).  Although the IG concluded that the agency met statutory requirements set forth in the Clean Air Act and Administrative Procedure Act, the IG found that EPA’s process for peer reviewing the Technical Support Document (“TSD”) supporting the endangerment finding did not comply with the Office of Management and Budget’s peer review requirements.

EPA Delays Power Plant GHG Standards

By James Holtkamp

The Environmental Protection Agency has announced that it is indefinitely delaying the issuance of proposed New Source Performance Standards under Section 111 of the Clean Air Act that would regulate greenhouse gas emissions from new, modified and existing electric power plants.  EPA was facing a September 30, 2011 deadline for issuing the proposed NSPS, based on settlement of litigation with environmental groups.   A  new deadline will have to be negotiated with the environmental group petitioners.