EPA Sends Reconsideration of Johnson Memo to White House

EPA has sent the White House Office of Management and Budget its final reconsideration of the "Johnson memo" on when EPA would be required to start regulating GHGs from industrial sources, Greenwire reported. The agency was expected to stick to the policy outlined by George W. Bush administration EPA Administrator Stephen Johnson that "facilities should be required to obtain New Source Review permits only for pollutants that are subject to 'actual control' under the Clean Air Act, as opposed to those that are subject to monitoring and reporting requirements, or other definitions" in its final reconsideration," wrote Greenwire.

The question remained as to when emissions would be subject to actual controls. EPA could "begin requiring permits from industrial facilities when the tailpipe rule is promulgated, when the standard takes effect 60 days later, or when car companies must begin to comply with the rule, in January 2011. Additional options may also apply," wrote Greenwire.

Roger Martella, the EPA general counsel during the George W. Bush administration, was quoted as saying: "By releasing the Johnson memo ahead of other rules, [EPA] may attempt to eliminate some of the uncertainty regarding how soon it believes PSD requirements will be triggered in the aftermath of the motor vehicle rule."

David Doniger, policy director of the Natural Resources Defense Council's Climate Center, said EPA's final rules were not likely to come as a surprise to anyone. He was quoted as saying: "The process is pretty transparent, actually. We generally don't know as much about the outcome of rules as we know." EPA's tailoring rule was expected to be completed next month.

EPA Administrator Lisa Jackson said that the agency does not intend to hold up any permits until the new rules are in place, though some applications now in the works could be subject to the new rules depending on how long the permitting process takes. She was quoted as saying: "The truth of the permit process is that the permit requirements apply at the time that the permit is issued."

Jeff Holmstead, former EPA air chief during the George W. Bush administration and current lobbyist at Bracewell & Giuliani for coal-based utilities, disagreed. He was quoted as saying: "As a matter of law, that's not the way it works. It's not whatever requirements apply when they finally decide to give you your permit."