Obstacles Emerge to EPA Plans to Use Clean Air Act for GHG Limits

Some legislators may oppose an EPA proposal to receive $7.5 million of Clean Air Act funding to establish new source performance standards for GHG emissions in its fiscal 2011 budget, Inside EPA reported today. EPA said it would use the funding to consider rules "for major industrial sectors and seek, where possible, market-oriented mechanisms to provide lowest cost compliance options."

An industry source said the EPA plan may not be compatible with statutory provisions that apply only to "technology for a particular type of equipment" to cut GHG emissions. The source said "a lot more definition" would be needed "before a lot of people would be comfortable with it."

Senate environment panel minority counsel Thomas Hassenboehler said Republican senators opposed using cap-and-trade to limit emissions. A law professor added that establishing a cap-and-trade program under new source performance standards would require the "major undertaking" of first setting a national ambient air quality standard for GHG emissions.