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Green on the hill: EPA delays GHG emissions reporting

Congress may prohibit EPA imposition of GHG controls

By Stephen Barlas

April 12, 2011

Bowing to congressional pressure, the EPA has put off the March 31, 2011 deadline for companies to report greenhouse gas (GHG) emissions to the agency. Tthe GOP is now moving forward with legislation prohibiting the EPA from actually regulating (as opposed to simply reporting) GHG emissions. Obama wants to convert the current Section 179(d) building efficiency tax deduction for new commercial construction into a more generous tax credit and make it available for retrofits.

Bowing to congressional pressure, the EPA has put off the March 31, 2011, deadline for companies to report greenhouse gas (GHG) emissions to the agency. Companies that emitted more than 25,000 metric tons of carbon dioxide, methane, and other GHGs during 2010—based on total emissions from stationary fuel combustion units and miscellaneous use of carbonates—were to have submitted that information to the EPA by now. The EPA has not set a new reporting deadline, as of this publication date.

Seemingly emboldened by that reporting delay and by its November 2010 election gains, the GOP is now moving forward with legislation prohibiting the EPA from actually regulating (as opposed to simply reporting) GHG emissions. It is called the Energy Tax Prevention Act (H.R. 910) and was introduced in March by House and Senate Republicans, with a smattering of Democratic support. That bill very likely will pass the House; its prospects in the Senate are unclear.

The EPA’s initial GHG regulation took effect in January 2011. It affected a relatively small number of industrial “major sources” of air toxics in a program called “prevention of significant deterioration (PSD). Those companies had to start counting GHG emissions for the first time toward a total of 25 metric tons, the threshold for having to apply for a PSD permit. Lisa Jackson, administrator of the EPA, has announced the agency would begin the job of writing regulations for GHG emissions from two separate industries—electric utilities and refineries— toward the end of 2011.

Obama Proposes Juicer Incentives for Building Efficiency Measures

The political environment on Capitol Hill has changed considerably since President Obama announced his Better Buildings Initiative in early February as part of his 2012 budget proposal. Obama wants to convert the current Section 179(d) building efficiency tax deduction for new commercial construction into a more generous tax credit and make it available for retrofits.

Currently Section 179(d) provides a $1.80-per-square-foot tax deduction for a new building that is 50 percent better than the ASHRAE 90.1 with respect to building envelope, lighting, and the HVAC system. In addition, a partial deduction of 60 cents per (sq. ft.) is available for any one of these three components, again at a gain of 50 percent.

Lane Burt, technical policy director, U.S. Green Building Council, said the council is very supportive of the Obama proposal to convert the deductions to credits and make them available for retrofits. Congress would have to pass those proposals in a tax bill. But any new tax credits will be hard for Congress to swallow, given the drive to close the federal budget deficit. A Senate bill introduced in 2010, with strong bipartisan support, provided for some of the incentives Obama backed in February. But that bill, called the Expanding Building Efficiency Incentives Act, went nowhere last year, and its prospects this year may not be much better given its potential hit to the federal deficit.

Final Boiler MACT Seen as Lacking

The boiler MACT (maximum achievable control technology) final rule that the EPA published Feb. 23 will undoubtedly ease compliance costs for big industrials. According to the agency, industrials operate about 13,800 boilers nationwide. In the final rule, the agency divides those boilers into 15 subcategories—in part based on the fuel used for the boiler—and establishes emission control requirements for each with regard to mercury, metals, and organic air toxics. For all new and existing natural gas- and refinery gas-fired units with a heat input capacity less than 10 million British thermal units per hour (MMBtu/hr), the final rule establishes a work practice standard, instead of numeric emission limits. Units combusting other gases can qualify for work practice standards by demonstrating that they burn “clean fuel,” with contaminant levels similar to natural gas. These two provisions ease the requirements in the proposed rule of last year. Numeric emission limits are set for all other boil

From “Green Manufacturer Brief”

News items from our e-newsletter

New Energy Efficiency Requirements of Electric Motors in Effect

On December 19, 2010, a change went into effect regarding energy-efficiency requirements for most three-phase electric motors either manufactured in the U.S. or shipped to the U.S. on or after this date. These Department of Energy requirements are part of the Energy Independence and Security Act of 2007 (EISA 2007).

The requirements cover both stand-alone motors and those that are part of another piece of machinery. The following motors fall under the law:

General-purpose electric motors (subtypes I and II) with a power rating between 1 HP and 200 HP
Fire pump motors
NEMA Design B general-purpose electric motors with a power rating of more than 200 HP but not greater than 500 HP

To see charts containing nominal full-load efficiencies, see Sections 431.25(c)-(f) of Title 10 of the Code of Federal Regulations.

The Department of Energy has issued a FAQ sheet that provides an overview of the new requirements as well as general guidance on certification, including links to certification details.

EPA’S Focus on Health

Health Research Funding. The U.S. Environmental Protection Agency has announced funding for environmental-related health research.

EPA Awards $25 Million to HEI to Improve Air Quality. In its efforts to improve air quality and protect health, the EPA has announced it will award $25 million to the Health Effects Institute (HEI). This money will be allocated over a five-year period. HEI is using the funding to study the combined effects of air pollution on people’s health and the relationship between air quality and climate change.

EPA Seeks Applications for Community-Based Environmental Grants. This year, the EPA will make available $2 million to reduce pollution at the local level through the Community Action for a Renewed Environment (CARE) program. The community-based program works with county and local governments, tribes, nonprofit organizations, and universities to help the public to understand and reduce toxic risks from numerous sources to protect people’s health.

The EPA will award CARE cooperative agreements in two levels. Level I awards range from $75,000 to $100,000 and will help establish community-based partnerships to develop local environmental priorities. Level II awards, ranging from $150,000 to $300,000 each, will support communities that have established broad-based partnerships, identified the priority toxic risks in their communities, and are prepared to measure results, implement risk-reduction activities and become self-sustaining.

Applications for the CARE grants are due March 22, 2011, 4:00 p.m. EST. More information is available here.

Clean Air Act Violations

The EPA and Justice Dept. have settled some Clean Air Act violations and halted disposal of mining waste.

EPA, Justice Dept. Announce Settlement to Protect Indiana Public Health. The EPA and the U.S. Justice Department have announced a global Clean Air Act settlement with Northern Indiana Public Service Co. (NIPSCO) that will cover all of NIPSCO’s coal-fired power plants, located in Chesterton, Michigan City, Wheatfield and Gary, Ind. The company now will invest approximately $600 million in pollution control technology that will protect public health and resolve violations of the Clean Air Act. Click here for more information.

Refinery to Pay More Than $5.3 Million Penalty for Violations. The EPA and the Justice Dept. have reached a settlement with Hovensa LLC, the owner of the second largest petroleum refinery in the United States, over the company’s Clean Air Act violations at its St. Croix, U.S. Virgin Islands refinery. The company will pay a civil penalty of more than $5.3 million and spend more than $700 million in new pollution controls that will help protect public health. According to the settlement, the company must upgrade pollution controls, heed more stringent emission limits, and engage in more aggressive monitoring, leak-detection, and repair practices to reduce emissions from refinery equipment and process units. Read more.

EPA Halts Disposal of Mining Waste to Appalachian Waters. The EPA has announced that it will halt the proposed disposal of mining waste in streams at the Mingo-Logan Coal Co.’s Spruce No. 1 coal mine in West Virginia. This move comes about after a public hearing, a scientific study, and a review of more than 50,000 public comments. Stopping the disposal will protect the water quality, wildlife, and Appalachian communities who rely on the water for drinking, fishing, and recreation. According to the EPA, it has used this Clean Water Act authority in just 12 circumstances since 1972 and reserves this authority for only unacceptable cases. This permit was first proposed in the 1990s and has been held up in the courts ever since. Click here to read the final determination.

Additional Settlements. Learn more about additional compliance and enforcement.

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