Regulating CO2 Under the Clean Air Act—Not the Kind of Change We Have Been Waiting For

In July, the Environmental Protection Agency announced an Advance Notice of Proposed Rulemaking (ANPR) regulating greenhouse gas emissions under the Clean Air Act.[1] This is likely the largest, most far-reaching regulation ever.

The threshold test for EPA to move forward with this far-reaching regulation is whether carbon dioxide and other greenhouse gases ìendanger human health and welfare.î The Bush Administration has not reached a conclusion on that question.

Yesterday, Bloomberg.com reported that Barack Obama believes that carbon dioxide endangers human health and welfare and thinks it should be regulated using the Clean Air Act.

What are the likely outcomes if carbon dioxide is regulated under the Clean Air Act?

Regulating carbon dioxide means regulating the activities that emit carbon dioxide. In the United States, 85% of the energy we use comes from sources that emit carbon dioxideócoal, petroleum, and natural gas. Regulating these sources of energy will increase prices to consumers (e.g. electricity and gasoline)and reduce the economic efficiency of the economy, leading to job losses and large reductions in economic growth.

The Heritage Foundationís Center for Data Analysis has estimated the economic impacts of carbon dioxide regulation, finding that regulating carbon dioxide using the Clean Air Act would:

  • Reduce aggregate gross domestic product by $6.9 trillion by 2029.
  • Reduce employment in the manufacturing sector by 2.9 million jobs by 2029.
  • Reduce employment in:
    • Mining by 7.4%;
    • Transportation and warehousing by 17%;
    • Durable manufacturing by 28%;
    • Textile mills by 28%;
    • Paper and paper products by 36%;
    • Plastics and rubber products by 54%;
    • Machinery manufacturing by 57%.

As the Center notes, ìThe study measures only the likely impacts through 2029, at which point CO2 will have been cut by 31% below the 2005 level. The ultimate CO2 reduction target will likely exceed 70% by 2050.î

Over 1.2 million business will need to get carbon dioxide emission permits from EPA.

Regulating carbon dioxide through the Clean Air Act means many businesses will need to pay for new permits just to stay in business. According to the Department of Agriculture,[2] the following farms will need to get permits under Title V of the Clean Air Act:

  • Dairy facilities with over 25 cows
  • Beef operations with over 50 head of cattle
  • Swine operations with more than 200 hogs
  • Farms with more than 500 acres of corn

The process of getting permits under the Clean Air Act from EPA is long and costly. The Department of Agriculture states ìthese operations simply could not bear the regulatory compliance costs that would be involved.î[3]

Farms arenít the only businesses that will be forced to obtain permits from EPAóover 1.2 million buildings will needs to get carbon dioxide permits. Here are some of the businesses that will be required to get permits:

  • 1 million mid-sized to large buildings
    • 10% of all churches,
    • 20% of all food service buildings
    • 50% of the buildings used by the lodging industry
    • 92,000 health care facilities (ie. hospitals)
  • 200,000 manufacturing operations
  • 20,000 large farms

These are just a few of the likely outcomes of the EPAís current plans. But there will be many moreóthe proposed regulation and supporting documents already span 18,000 pages. And thatís just for the advance notice of proposed rulemaking, not the actual rules.

One last note–even if EPA implemented these plans, they will not result in a change in global warming. The vast majority of future greenhouse gas emission will come from developing countries like China, India, and the Middle East. As a result, reductions in U.S. emissions are likely to have little impact on global emissions. If the U.S. were to eliminate all carbon dioxide emissions by 2030, world-wide carbon dioxide emissions would still increase by about 30 percent.

EPA is currently accepting comments from the public on these regulations. Make your voice heard by EPA by commenting here.

And more background is available here.


[1] Environmental Protection Agency, Regulating Carbon dioxide Emissions

Under the Clean Air Act, 73 Fed. Reg. 44,354 (July 30, 2008).

[2] Department of Agriculture, Comments on EPAís Advance Notice of Proposed Rulemaking on Regulating Greenhouse Gases Under the Clean Air Act, 73 Fed. Reg. 44,354, 44,377 (July 30, 2008).

[3] Id.

Obama to Declare Carbon Dioxide Dangerous Pollutant

According to Bloomberg.com:

Barack Obama will classify carbon dioxide as a dangerous pollutant that can be regulated should he win the presidential election on Nov. 4, opening the way for new rules on greenhouse gas emissions.

The Democratic senator from Illinois will tell the Environmental Protection Agency that it may use the 1990 Clean Air Act to set emissions limits on power plants and manufacturers, his energy adviser, Jason Grumet, said in an interview. President George W. Bush declined to curb CO2 emissions under the law even after the Supreme Court ruled in 2007 that the government may do so.

The American Energy Alliance has grave reservations about regulating greenhouse gas under the Clean Air Act. Using this Clean Air Act in this way will entail grave economic costs and make America less economically competitive. We believe the Clean Air Act is not the appropriate tool for regulating greenhouse gases.

To send comments to EPA on this issue, the American Energy Alliance has created a model comment to send to EPA here .

AEA Launches Online Initiative to Thwart EPA Proposal to Regulate Practically Everything

Proposed rulemaking on greenhouse gas regulation an economic train wreck in the making

Washington, D.C. – Today the American Energy Alliance (AEA) launched a new online initiative to alert voters about the economic perils associated with the Environmental Protection Agency’s (EPA) effort to regulate greenhouse gases under the Clean Air Act.  Known as an Advance Notice of Proposed Rulemaking (ANPR) , the EPA’s proposed regulatory framework would make energy scarce and even more expensive, further eroding an already fragile economy.  AEA is launching Stop the EPA to help avert this economic disaster.

“The Clean Air Act was designed to protect and enhance the quality of the air we breathe, not to suck the oxygen out of the U.S. economy,” said Thomas Pyle, president of AEA.  But when you consider the extreme scope and extent of this regulatory proposal, that’s exactly what would happen if it were enacted.  No other country in the world would even consider inflicting so much harm and hardship on itself, but that’s precisely what is happening in Washington today.

In 2007, the Supreme Court rendered an opinion in Massachusetts v. EPA which found that greenhouse gases could be classified as air pollutants under the Clean Air Act.  It also directed the agency to determine whether carbon dioxide and other greenhouse gases endanger public health and welfare.  It was a decision that, according to one dissenting Supreme Court justice, could eventually lead to the regulation of everything “from Frisbees to flatulence.”

Indeed, EPA’s response was a voluminous 500+ page Advance Notice of Proposed Rulemaking (ANPR) that outlines the myriad of activities, industries, businesses, and commercial goods and services that could fall victim to a heavy-handed scheme to regulate greenhouse gas emissions under the Clean Air Act.  The EPA is currently soliciting comments on its proposal.

“By attempting to regulate the production and virtually all known uses of energy – the lifeblood of our economy – the EPA has constructed a depression-inducing Trojan Horse that could find itself into every factory, family room, small business and backyard in America,” Pyle continued.  “Regulating personal consumption of oxygen is perhaps the only thing that could be more perverse, especially given the state of our economy and the rising costs of energy today.  It’s imperative for consumers to educate themselves on this issue and take action by issuing their comments to the EPA itself.”

EPA’s plan is so sweeping it could include regulate the fuel economy of lawnmowers, the design of tractor trailer mirrors and airplane wingtips, and even the shape of automobiles.  It could also lead to energy restrictions on over one million buildings including hospitals, churches, office buildings, and stadiums.

Key Definitions for putting the ANPR in Perspective

Carbon: A naturally abundant nonmetallic element that occurs in many inorganic and in all organic compounds, exists freely as graphite and diamond and as a constituent of coal, limestone, and petroleum, and is capable of chemical self-bonding to form an enormous number of chemically, biologically, and commercially important molecules.

Carbon Dioxide: A colorless, odorless, incombustible gas that is present in the atmosphere and is formed when any fuel containing carbon is burned. It is breathed out of an animal’s lungs during respiration, is produced by the decay of organic matter, and is used by plants in photosynthesis. Carbon dioxide is also used in refrigeration, inert atmospheres, fire extinguishers, carbonated drinks, and more.

About the American Energy Alliance: The American Energy Alliance (AEA) is a recently formed not-for-profit 501(c)(4) organization that advocates for free-market energy and environmental policies.  It is affiliated with the Institute for Energy Research (IER) , another not-for-profit – founded in 1989 – that conducts intensive research and analysis on the functions, operations, and government regulation of global energy markets.  Both AEA and IER maintain that freely-functioning energy markets provide the most efficient and effective solutions to today’s global energy and environmental challenges and, as such, are critical to the well-being of individuals and society.

Take Action at AEA Online:
www.americanenergyalliance.org/stoptheepa.

Kentucky – Reject Lunsford’s Gas Tax

Lunsford Tax Radio Ad

AEA Calls on Kentucky Voters to Reject Lunsford’s Gas Tax

Listen


“It is very nearly beyond belief that anyone today could be proud of making energy more expensive for working families.  But Bruce Lunsford is.  That should serve as a warning to Kentuckians.”

Washington, DC – The American Energy Alliance (AEA) continues its efforts to hold leaders accountable for the energy policies with a new radio spot, “Lunsford’s Tax.”   AEA’s new ad will run starting today in Kentucky.

AEA President Thomas Pyle issued the following statement:

“Bruce Lunsford’s record of being one of the creators of the gas tax in Kentucky recently came to our attention.  We expected that he would be embarrassed or regretful about his role in creating Kentucky’s gas tax. It is very nearly beyond belief that anyone today could be proud of making energy more expensive for working families.  But Bruce Lunsford is.  That should serve as a warning to Kentuckians.”

Script of the “Lunsford Tax” ad follows:

Nobody likes paying more at the pump – unless you’re Bruce Lunsford.  Lunsford proudly takes credit for passing a gas tax that is now 21 cents per gallon.  That’s right.  As a lobbyist and Frankfort politician, Bruce Lunsford fought to hike the gas tax.

Since 2004, the percentage based Lunsford gas tax has grown more than a penny a gallon each year.  For a wealthy lobbyist like Lunsford twenty-one cents a gallon more may not matter.

Read the fact sheet here.
[Read more…]

AEA Calls on Kentucky Voters to Reject Lunsford’s Gas Tax

Listen


“It is very nearly beyond belief that anyone today could be proud of making energy more expensive for working families.  But Bruce Lunsford is.  That should serve as a warning to Kentuckians about how he might vote if he joins the U.S. Senate.”

Washington, DC – The American Energy Alliance (AEA) continues its efforts to hold leaders accountable for the energy policies with a new radio spot, “Lunsford’s Tax.”   AEA’s new ad will run starting today in Kentucky.

AEA President Thomas Pyle issued the following statement:

“Bruce Lunsford’s record of being one of the creators of the gas tax in Kentucky recently came to our attention.  We expected that he would be embarrassed or regretful about his role in creating Kentucky’s gas tax. It is very nearly beyond belief that anyone today could be proud of making energy more expensive for working families.  But Bruce Lunsford is.  That should serve as a warning to Kentuckians about what his approach on energy policy might be if he joins the U.S. Senate.”

Script of the “Lunsford Tax” ad follows:

Nobody likes paying more at the pump – unless you’re Bruce Lunsford.  Lunsford proudly takes credit for passing a gas tax that is now 21 cents per gallon.  That’s right.  As a lobbyist and Frankfort politician, Bruce Lunsford fought to hike the gas tax.

Since 2004, the percentage based Lunsford gas tax has grown more than a penny a gallon each year.  For a wealthy lobbyist like Lunsford twenty-one cents a gallon more may not matter.

Read the fact sheet here.

But for hard working Kentucky families, the Lunsford gas tax means you’re paying hundreds of dollars more at the pump each year.  Money our families could use to deal with rising grocery bills and utility costs.

Call Bruce Lunsford at (502) 458-7500. And tell him we should say good-bye to the Lunsford gas tax – Kentucky families can’t afford it.

You can listen to this ad by clicking here.

The American Energy Alliance (AEA) is a recently formed not-for-profit 501(c)(4) organization that advocates for free-market energy and environmental policies.  It is affiliated with the Institute for Energy Research (IER), another not-for-profit – founded in 1989 – that conducts intensive research and analysis on the functions, operations, and government regulation of global energy markets.  Both AEA and IER maintain that freely-functioning energy markets provide the most efficient and effective solutions to today’s global energy and environmental challenges and, as such, are critical to the well-being of individuals and society.

AEA Keeps Leaders Honest on Energy Production

American Energy Advocacy Campaign Continues with Two New Ads

“More energy production from resources owned by the American people  — on and offshore – means lower energy prices for American families and businesses.  Some people get it.  Some don’t.”


Washington, DC
– The American Energy Alliance (AEA) continues its efforts to keep leaders accountable for their energy policies with two new radio spots, “Financial Disaster” and “New American Energy.”  AEA’s latest ads will run starting today in Colorado and Mississippi.

AEA President Thomas Pyle issued the following statement:

“Our continued education efforts are driven by a simple but powerful idea; more production from resources owned by the American people – on and offshore — means lower energy prices for American families and businesses.  Some people get it.  Some don’t.  But we will keep working to educate voters, government officials, and other stakeholders until everyone understands this fundamental fact. 

“Frankly, I am shocked the even now some of our elected leaders, like Congressmen Udall in Colorado, continue to support energy policies that will undermine the economy of both the Nation and of individual families.”

“At the same time, it is appropriate to recognize those who support the right policies for American consumers.  That’s why we are pleased to alert voters in Mississippi that their Senators did the right thing by fighting to lift the ban on the decades old offshore energy moratorium.”

Script of the “Financial Disaster” ad follows:

Energy costs are soaring and our economy is in financial crisis.  Congressman Mark Udall’s u-turn on energy policy is in the wrong direction for Colorado families.

After 34 votes against additional exploration and cheaper energy, Mark Udall supports a new energy plan that studies say will cost America over 600,000 jobs and reduce household earnings in Colorado by over 340 million dollars.

The Udall plan also calls for increased taxes on energy and publicly held company profits – squeezing our pension and 401K plans that are already reeling from bank failures and the mortgage disaster.  Mark Udall’s votes helped create America’s energy and economic problems.  His new plan is not a solution.

Call Mark Udall at 303-650-7820.  Tell him Colorado families can’t afford his energy plan.

You can listen to this ad by clicking here.

Script of the “New American Energy” follows:

Energy costs continue to soar and our economy is in financial crisis.  Lifting the ban on offshore exploration is the first step toward increasing domestic energy production.  New domestic exploration will mean lower energy costs for our families, new investment in our economy and more Mississippi jobs.  Senators Roger Wicker and Thad Cochran understand this.

Our Senators fought to lift the Congressional ban on offshore exploration and production, paving the way for new American energy.  Call Senator Wicker at (601) 965-4644 and Senator Cochran at (601) 965-4459.  Thank them for working to lift the offshore energy ban and tell them to fight against the forces that threaten to stop offshore exploration before it even starts.

You can listen to this ad by clicking here.

The American Energy Alliance (AEA) is a recently formed not-for-profit 501(c)(4) organization that advocates for free-market energy and environmental policies.  It is affiliated with the Institute for Energy Research (IER), another not-for-profit – founded in 1989 – that conducts intensive research and analysis on the functions, operations, and government regulation of global energy markets.  Both AEA and IER maintain that freely-functioning energy markets provide the most efficient and effective solutions to today’s global energy and environmental challenges and, as such, are critical to the well-being of individuals and society.

Mississippi AEA Launches American Energy Ad

Listen
The text of the ad follows

Energy costs continue to soar and our economy is in financial crisis.

Lifting the ban on offshore exploration is the first step toward increasing domestic energy production.

New domestic exploration will mean lower energy costs for our families, new investment in our economy and more Mississippi jobs.

Senators Roger Wicker and Thad Cochran understand this.

Our Senators fought to lift the Congressional ban on offshore exploration and production, paving the way for new American energy.

Call Senator Wicker at (601) 965-4644 and Senator Cochran at (601) 965-4459.

Thank them for working to lift the offshore energy ban and tell them to fight against the forces that threaten to stop offshore exploration before it even starts.


Read the whole fact sheet here

Colorado AEA Launches Financial Disaster Ad

Listen
The text of the ad follows

Energy costs are soaring and our economy is in financial crisis.

Congressman Mark Udall’s u-turn on energy policy is in the wrong direction for Colorado families.

After 34 votes against additional exploration and cheaper energy, Mark Udall supports a new energy plan that studies say will cost America over 600,000 jobs and reduce household earnings in Colorado by over 340 million dollars.

The Udall plan also calls for increased taxes on energy and publicly held company profits – squeezing our pension and 401K plans that are already reeling from bank failures and the mortgage disaster.

Mark Udall’s votes helped create America’s energy and economic problems.  His new plan is not a solution.

Call Mark Udall at three, oh, three – six, five, oh – seventy-eight twenty (303-650-7820).  Tell him Colorado families can’t afford his energy plan.

Read the whole fact sheet here

Mississippi – American Energy

New American Energy Radio Ad