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Expectations from Greenhouse Gas Regulation

by Daniel Stouffer

The Environmental Protection Agency (EPA) has unveiled the final ruling on greenhouse gas emissions at the federal level. During the second week in May 2010, supporters of climate change are victorious as Senators Lieberman and Kerry has rolled out the climate change legislation. The EPA is also about to set emissions regulation for the largest industries, as a response to the Clean Air Act.

The Clean Air Act includes permitting requirements and greenhouse gas regulation that would kick in in January 2011, when the largest facilities are required to include greenhouse gases in their permitting allocations. As 2011 begins,these allowances will have to be expanded and facilities that emit greenhouse gas of at least 100,000 tons per year shall be required to get permit to operate.

The second week in May, 2010 was momentous for climate change protagonists as not only did Senators Kerry and Lieberman finally unveil their much vaunted climate legislation, but the EPA also announced their final rule in the process of greenhouse gas regulation at the federal level. The EPA is set to regulate emissions from the largest industrial facilities, as part of the overall reach of the Clean Air Act.

Allowances will be allocated by the EPA under the GHG regulation rules if the industry put into question will be able to show that it has the best available technology available for controls, as well as mitigation practices, to reduce carbon emissions. These rules come around as a result of a determination made in 2009 that greenhouse gases are a danger to public health and welfare. This powerful finding paved the way for the implementation of thresholds and the stringent permitting requirements.

Not surprisingly, advocates and politicians are up in arms about the greenhouse gas regulation rule announced by the EPA. The announcement of the rule was largely overshadowed by the publicity given to the American Power Act proposal, the Senate version of a cap and trade program. Indeed, Sen. According to Kerry, unless the senators would be accepting the legislation, EPA’s regulators would have to move.

Detractors aim to squash the EPA’s greenhouse gas regulation if at all possible. The Republican Party’s politicians have signified their intention to challenge the stipulations of the Clean Air Act in the proper courts, as they are expecting that this legislation type will extend to include the large and small businesses in the close future.

EPA fully believes that it has a mandate to regulate under the Clean Air Act and indeed is required to address greenhouse gas emissions from stationary sources as it has already addressed such emissions from non-stationary sources. Vehicles are expected to comply with strict emissions standards by the start of 2011 as part of the regulation procedures.

Through 2011, approximately 1500 organizations or sources could be required to obtain or add to their permits to cover their regulated greenhouse gas emissions.

Depending on one’s point of view, the fight is on whether to pass the American Power Act or to address the implications of the EPA GHG regulation rule. In one way or another, it is likely that carbon emissions in the US will be regulated more intensively by 2011.

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