Climate Change Climate Change LegislationLegislation

Intelligent Transport Society of Intelligent Transport Society of AmericaAmerica

May 4, 2010May 4, 2010Annual Meeting and ExpositionAnnual Meeting and Exposition

Houston, TexasHouston, TexasTom Richichi

202-789-6026trichichi@bdlaw.com

Our Future?Our Future?

Recent Legislative Recent Legislative DevelopmentsDevelopments

1. Kerry-Graham-Lieberman May/June ?

2. Cantwell-Collins (“The CLEAR Act”)

3. Boxer- Kerry (Cap & Trade)

Graphic Representation of Graphic Representation of LegislationLegislation

Kerry-[Graham]-LiebermanKerry-[Graham]-Lieberman

1. 800 pages embargoed

2. Outline sent to EPA for review – 6 weeks

3. Debate in June Following Memorial Day Recess?

4. Streamlined Approach from Prior Bills

5. Cap and Trade Becomes Reduce and Refund

6. Energy Policy/Job Creation Focus

K [G] L - continuedK [G] L - continued

6. Caps on Power Plant CO2 Emissions (2012)7. Separate caps for other sectors8. Staggered deadline for manufacturing

emissions limits (2016)9. Allowance auction revenues back to

consumers and industries10. Pricing of carbon – carbon tax (linked fee) on

transportation fuels tied to market [?]11. Add-ons to attract moderate

Democratic/Republican support

Potential Add-ons to Bipartisan Potential Add-ons to Bipartisan Climate BillClimate Bill

• Preemption of state regulation• Tax breaks/financial assistance to manufacturers• Mitigation measures

Phase-ins Price collars (between $10 and $28) Offsets (permanence and flexibility mechanisms?) Emissions allowance distribution Reasonable targets/timetables

• Electric vehicle incentives• National renewable energy standards

Potential Additions to Bipartisan Potential Additions to Bipartisan Climate Bill (April 15 Letter From Climate Bill (April 15 Letter From

Democratic Senators) Democratic Senators)

• Allowance rebates to energy intensive industries• Border measures (WTO issues)• Expanded nuclear power• Offshore drilling (revenue dedication/Gulf spill?)• Expanded domestic oil and gas exploration• Diminished role for EPA• Developing country commitments

GHG Activities GenerallyGHG Activities Generally

• RegulationsEPA’s actions the result of Mass v. EPA (2007)

• StatesSeven state AG’s (CA, MA, DE, ME, MD, RI,

VT) asked Congress to not preempt state level progress

Key Clean Air Act Climate Key Clean Air Act Climate Change RulemakingsChange Rulemakings

• Final California GHG Waiver (7/8/09)

• Final Mandatory GHG Reporting Rule (9/22/09)-----------------------------------------------------

• Final Endangerment and Cause or Contribute Finding (12/15/09)-----------------------------------------------------

• Final Reconsideration of a Guidance Memorandum Issued by Former EPA Administrator Stephen Johnson (the “Johnson Memo”) (75 Fed. Reg. 17004, April 2, 2010)

• Final Light Duty Vehicle GHG Standards (Issued 4/1/10)

• Proposed PSD/Title V Tailoring Rule