coal: jobs and stability for america’s economy conference and exposition may 21, 2012
DESCRIPTION
The Regulatory Cascade and Its Impact on Development William L. Kovacs Senior Vice President U.S. Chamber of Commerce. Coal: Jobs and Stability for America’s Economy Conference and Exposition May 21, 2012 Kingsport, TN. The Regulatory Cascade:. Its Impact on Energy Development. - PowerPoint PPT PresentationTRANSCRIPT
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American Enterprise
The Regulatory Cascade and Its Impact on Development
William L. KovacsSenior Vice President
U.S. Chamber of Commerce
Coal: Jobs and Stability for America’s Economy
Conference and Exposition
May 21, 2012
Kingsport, TN
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
The Regulatory Cascade:
1. Why The Regulatory Process Matters
2. Attacks On Energy Development and Industry
3. Cost of Overregulation
4. Where Does Industry Go From Here?
Its Impact on Energy Development
2
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
Why the Regulatory Process Matters
3
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
It is Costly!
Type of Return Number of Returns Gross Tax Collections (millions)
Individual Income Tax 114,103,375 $1,175,422
Corporation Income Tax 2,475,785 $225,482
Employment Taxes 30,223,289 $858,164
Excise Tax 809,461 $46,632
Gift Tax 245,262 $3,094
Estate tax 47,320 $21,583
To United States $1.75 trillion
Cost Per Employee $8,086
Cost To Small Businesses $10,585
Tax Collections Before Refunds by Type: FY-2009
Cost of Regulation in 2008
4
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
Cumulative Number of Rules: 1976-2011
5
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
2009-2010 Code of Federal Regulations
154,538Total Pages
42,786 Pages on Environment
6
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
Agency Rules in the Pipeline, 2001–2011
7
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American Enterprise
March 27, 2012: EPA Proposes First-Ever GHG Limits on Power Plants
Key Facts:Applies to NEW plants onlyStandard is 1000 pounds of CO2 per MWhEffectively bans all new coal plants unless they have CCSAlso effectively bans all new gas plants unless combined cycle
COMING SOON:Similar standards for existing fossil-fuel-fired power plantsSimilar standards for refineries
There are MANY legal and structural deficiencies with this rule. Also, considering election-year politics, the final rule could be issued post-election.
8
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
National Hydrography Dataset: Sanitation District Number 1 in North Kentucky
Map B:Approximate lengths of streams:
Perennial 47 miIntermittent 96 mi
Ephemeral 384 mi
Map A:Approximate lengths of streams:Perennial 47 miIntermittent 96 mi
Map A Map B
Map Provided by the American Farm Bureau Federation
9
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
Regulatory Process Can Be ManipulatedRegulation Name Date Agency Plaintiff(s) Description Link
GHG NSPS for Power Plants and Refineries 12/23/2010 EPA
Earthjustice, EDF, Sierra Club, NRDC, Environmental Integrity Project; 12
states
EPA plans to issue first-ever NSPS for greenhouse gas emissions from new and existing coal- and oil-fired power plants and all refineries in 2011-12. Settlement of 2006 lawsuit challenging power plant NSPS and 2008 suit seeking refinery NSPS.
http://earthjustice.org/news/press/2010/u-s-epa-agrees-to-schedule-for-issuing-carbon-pollution-standards-for-power-plants-and-refineries
Southern California Forest Service Management Plans 12/15/2010 U.S. Forest Service
Earthjustice, Center for Biological Diversity, Los Padres ForestWatch, Sierra Club, Defenders of Wildlife,
California Native Plant Society, California Wilderness Coalition, The
Wilderness Society
Conservation groups sued USFS over forest management plan for four CA national forests. The challenged plans designated more than 900,000 roadless acres for possible road building or other development. In 2009 a federal district court agreed with the groups, ruling that the plans violated the National Environmental Policy Act. The parties agreed to negotiate a settlement. The settlement withholds more than 1 million acres of roadless areas from development.
http://earthjustice.org/news/press/2010/agreement-protects-1-million-acres-of-roadless-areas-in-socal-forests
Atlantic Herring Fishery Revocation of Exemption 9/7/2010
National Marine Fisheries Service
(NMFS)Earthjustice
Settlement removes exemption that allowed herring industrial trawlers to release small amounts of fish that remain after pumping without federal inspection. The new rule by NMFS requires federal accounting and inspection for all fish brought on board.
http://earthjustice.org/news/press/2010/nmfs-finalizes-important-rule-for-atlantic-herring-fishery
Federal Water Quality Standards for the State of Florida
Announced 8/19/2009; first
standards proposed 1/15/2010
EPA
Earthjustice, Florida Wildlife Federation, Sierra Club, St. Johns
Riverkeeper, Conservancy of Southwest Florida, and Environmental
Confederation of Southwest Florida
Environmental groups sued EPA in July 2008 to set water quality standards in Florida to cut down on nitrogen and phosphorous to reduce contamination from sewage, animal manure and fertilizer. As part of the settlement, EPA agreed to issue limits in phases. Limits for Florida’s flowing freshwaters, lakes and springs were finalized in November 2010; pollution limits for estuaries and South Florida canals will be set by August 2012.
http://earthjustice.org/news/press/2010/epa-announces-limits-on-fertilizer-animal-waste-and-sewage-pollution
Revisions to the Definition of Solid Waste under RCRA 9/10/2010 EPA Earthjustice, Sierra Club
Earthjustice and Sierra Club challenged 2008 "Definition of Solid Waste" rule, which removed hazardous waste requirements for recycling of material from steel, chemical and pharmaceutical companies. To settle the lawsuit, EPA says it will review and reconsider the rule, with a final decision due by December 31, 2012.
http://earthjustice.org/news/press/2010/u-s-epa-will-review-loophole-that-stripped-regulation-of-dangerous-hazardous-waste
NESHAP for Cement Kilns 4/22/2009 EPA Earthjustice, Environmental Integrity Project
EPA settled a lawsuit seeking to force the agency to control mercury emissions from cement kilns. Settlement required EPA to propose NESHAP that seek to curb national emissions of mercury, soot and several other HAPs by roughly 90 percent. Cement kiln rule was finalized on August 9, 2010; environmental groups sued again, arguing that the rule should have included GHGs.
http://earthjustice.org/news/press/2010/epa-adopts-strong-protections-against-air-pollution-from-cement-kilns
CWA Guidance for Mountaintop Removal Mining Permits 7/30/2010 EPA
Earthjustice, Appalachian Center for the Economy and the Environment and
Public Justice, Coal River Mountain Watch, Ohio Valley Environmental
Coalition, and West Virginia Highlands Conservancy
Environmental groups challenged CWA permitting for mountaintop removal mining, saying EPA did not account for impact on stream function. EPA issued this "guidance" while suit was pending in U.S. Supreme Court, which effectively settled the case. NMA has challenged the guidance, which it says has resulted in a de facto moratorium on coal mining in this part of Central Appalachia.
http://earthjustice.org/news/press/2010/us-epa-and-army-corps-to-follow-critical-clean-water-act-guideline-in-mountaintop-removal-mining-permits
10
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
Rulemakings on the Runway!
11
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
Attacks on Energy Development
12
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
Nationwide Challenges to Permits
13
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012 14
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
Beyond Coal Campaign
Sierra Club credits itself with retiring 106 coal plants and preventing 150 from being built.
West coast states and environmental groups are seeking programmatic environmental statement for west coast port.
Cumulative effects of coal transport to west coastEffects of the use of coal to produce energy in Asia here in the
United States
15
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
Areas Blocked for Drilling in the OCS
16
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
In Spite of -- Not Because of -- Federal Government95% of Shale Oil & Gas Wells are on Private and State lands
17
Source: PFC Energy North America Onshore Service
Background Note:Oil production is taking place in spite of – not because of – the Federal Government.95% of the shale oil & gas wells in the United States are on State and private lands.Approval applications to drill on federal lands down 36%
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
There Is Always Another Attack!
• While the Sierra Club said it hasn’t changed its mind about gas vs. coal, Deputy Executive Director Bruce Hamilton says he and other Sierra Club leaders are “trying to be clearer in our communication. ... We want people to know that natural gas is not a clean fuel and it needs to be cleaned up before it can be an acceptable fuel.”
• “As we push to retire coal plants, we’re going to work to make sure we’re not simultaneously switching to natural gas infrastructure.”
Michael Brune, Sierra Club Executive Director
• Beyond Gas Campaign
http://www.politico.com/news/stories/0211/49579.html
18
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
Cost of Overregulation
19
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American Enterprise
The Cost of EPA’s OverregulationRegulation What Did EPA Do? Compliance Cost Job Loss
Ozone
Less than two years after lowering the Ozone NAAQS from 80 ppb to 75 ppb, EPA attempted a “do-over” of those very same NAAQS. Using the very same record, EPA planned to lower the NAAQS even further, to the 60-70 ppb range. Realizing its mistake, the White House abandoned EPA’s proposed rule in September 2011.
$1.013 trillion annually between 2020 and 2030 (5.4% net reduction in GDP).
7.3 million by 2020 (4.3% of projected labor force).
Boiler MACT
Final rule sets hazardous air pollutant emission limits from industrial boilers and process heaters used by a wide range of manufacturers at levels which are barely detectable and possibly unachievable. Requires installation of up to four different air pollution control devices that will conflict with other existing control requirements. EPA reconsidered the rule and made some positive changes, but they are not final yet.
CIBO: At least $15 billion for capital, plus billions more in operating costs.
CIBO: More than 240,000 jobs are placed at risk.
Transport Rule
EPA recently finalized the Cross-State Air Pollution Rule (CSAPR), designed to reduce SO2 and NOx missions from power plants. CSAPR replaces the CAIR rule that was vacated by the DC Circuit. By 2014, seeks reductions in SO2 emissions by 73 percent from 2005 levels, NOx emissions by 54 percent.
NERC: $120 billion. NERA: Transport Rule & Utility MACT $184 billion together, 47.8 GW retired.
NERA estimates Transport Rule and Utility MACT combined will cause net loss of 1.44 million job-years by 2020.
Cooling Water Intake
Arising from a settlement with Sierra Club, EPA has proposed technology-based standards to regulate cooling water intake structures at CWA section 316(b) existing facilities (i.e., power plants). According to EPA, the withdrawal of cooling water harms billions of aquatic organisms each year.
Impacts up to 41GW of existing capacity (coal/nuclear) , approx. 347 units. Initial capital costs estimated at $64 billion.
No specifics, but obviously a great deal of coal plant employees.
MACT for power plants
EPA issued a rule requiring sources to use MACT to control hazardous air pollutant emissions from power plants. Coal-fired plants will be the hardest hit.
EPA says $10 billion. NERC: $70-$100 billion. NERA: Transport Rule & Utility MACT $184 billion together, 47.8 GW retired.
NERA estimates Transport Rule and Utility MACT combined will cause net loss of 1.44 million job-years by 2020.
Coal AshTo regulate the disposal of coal ash, a byproduct of the use of coal for electricity generation, EPA has proposed to regulate coal ash as either solid waste under RCRA subtitle D or as a hazardous waste under RCRA subtitle C.
Impacts between 250-350 coal units. Compliance costs $55-$77 billion.
No specifics, but obviously a great deal of coal plant employees.
GHG Regs
EPA chose to regulate GHGs under the Clean Air Act and triggered a massive regulatory cascade. The problems started on January 2, 2011 and impact permitting. In addition, Clean Water Act, NEPA, Endangered Species Act and SEC regs (material risk disclosures). EPA recently proposed performance standards that effectively ban all new coal plants.
PSD permits alone will cost $125,000 and 866 hours of burden per facility. Title V imposes up to $250,000 carbon “fee” on applicants.
ACCF Study predicts 5-15% reduction in investment. 2011-2014 ($97-$301
billion in 2014) 20
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
Greater Costs/Fewer Jobs as Other Industries are Attacked
21
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
Where Jobs will be Lost
22
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
Where Do We Go From Here?
23
U.S. CHAMBER OF COMMERCE 100 Years Standing Up for American EnterpriseCoal: Jobs and Stability for America's Economy Conference and Exposition May 21, 2012
•Environment
•Health care, capital markets, Labor/OSHA
•Develop appropriate oversight hearings
•Implement required jobs analysis
•Litigation of major rules harmful to business
•In H.R.1 (Continuing Resolution) secured 8 provisions to repeal EPA regulations
•In H.R. 2584 (Interior and Environmental Appropriations) secured 16 provisions to repeal EPA regulations
•Midnight Regulations legislation
•House Judiciary Committee introduced comprehensive Permit Streamlining legislation - H.R. 4377
•Permit Streamlining hearing April 25
•Working with PCJC on permit streamlining Executive Order
•House Judiciary Committee reported legislation to Floor that places limits on Consent Decrees
•Four House Committee Investigations
•Treasury Dept report due June 30
•Regional Haze
•H.R. 3010 passed the House on Dec. 2 by a vote of 253-167
•Places burden of proof on agencies for establishing high impact regulations
•Applies to executive and independent agencies
•Imposes a substantial evidence standard for court review
General Activity New Activities
Rebalancing the Regulatory Process
24