U.S. Environmental Protection Agency and Climate Change

1. U.S. Environmental Protection Agencyand Climate Change Michelle Eis, EPA Region 7 October 23, 2008

2. Objective and Outline Objective: To provide an overview of the following • Updates on related rule making • Ways EPA is addressing climate change Outline • ANPR for Endangerment Finding • Purpose • Timeline • EPA measures to Address Climate Change • Renewable Fuels Standard II • Geological Sequestration of CO2 • Mandatory Reporting on GHGs • Voluntary Programs • Questions & Answers

3. What is an ANPR? • Advance Notice of Proposed Rulemaking (ANPR) • An informal action sometimes taken by agencies prior to proposing a rule • Used when an agency believes it would be appropriate to obtain more information and solicit public input on possible regulatory approaches before deciding what to propose

4. ANPR for Endangerment Finding Purpose— • Represents EPA’s next step in responding to the Supreme Court case finding that GHGs are air pollutants under the Clean Air Act • Summarizes available science on climate change and its effects as relevant to endangerment test under CAA section 202 • Reviews EPA’s work to date on potential motor vehicle GHG standards • Examines interconnections among CAA provisions • Examines CAA provisions potentially applicable to GHGs, and opportunities and challenges that each would present • Provides information and seeks public comment on range of potential regulatory approaches and technologies (Nov 28, 2008) • Seeks comment on 7 petitions to set GHG standards for other types of mobile sources

5. ANPR for Endangerment Finding Does NOT: • Propose or recommend use of any particular Clean Air Act authority • Make judgments about a preferred pathway • Regulate any emissions • Commit to specific next steps

6. ANPR for Endangerment Finding Endangerment Test • CAA Section 202 endangerment language: The Administrator shall by regulation prescribe…standards applicable to the emission of any air pollutant from any class or classes of new motor vehicles . . . which in his judgment cause, or contribute to, air pollution which may reasonably be anticipated to endanger public health or welfare. • According to the Supreme Court, EPA must make one of the following determinations for motor vehicle GHG emissions based on the available science: • there is endangerment, or • there is no endangerment, or • the science is too uncertain to make a reasoned judgment

7. ANPR for Endangerment Finding Endangerment Issues • Whether the “air pollutant” should be defined as each individual GHG or as a group or groups of GHGs • Different definitions could have important implications for how GHGs are treated under other CAA provisions • Whether the “air pollution” (elevated concentrations of GHGs) may be reasonably anticipated to endanger public health, public welfare, or both

8. ANPR for Endangerment Finding Timeline • October 1999 – ICTA and others petition for regulation of 4 GHGs from new motor vehicles under CAA section 202(a) • August 2003—EPA denies ICTA petition • April 2007 – Supreme Court rules EPA improperly denied ICTA petition • May 2007– President directs EPA, other agencies to develop regulations to cut gasoline consumption and GHG emissions from motor vehicles, issues Executive Order 13432

9. ANPR for Endangerment Finding Timeline (continued) • December 2007 – Energy Independence and Security Act is enacted • Late 2007-early 2008 – EPA receives seven more petitions to set GHG standards for other mobile source categories • March 27, 2008 - EPA Administrator sends letter to Congress announcing that EPA will issue an ANPR as next step in responding to Supreme Court ruling • July 11, 2008 – Administrator signs ANPR • Public comment period open until November 28

10. ANPR for Endangerment Finding Recap of ANPR • Supreme Court case finding GHGs are air pollutants under the Clean Air Act • EPA responded with an ANPR-now must make one of the following determinations for motor vehicle GHG emissions based on the available science: • there is endangerment, or • there is no endangerment, or • the science is too uncertain to make a reasoned judgment • Comments by Nov 28, 2008 • Does not regulate GHG emissions

11. Ways EPA is Addressing Climate Change • Renewable Fuels Standard (RFS II) • Underground Injection Control Program (UIC) for Geological Sequestration (GS) of Carbon Dioxide (CO2) Proposed Rule • Mandatory Reporting of GHGs Rulemaking • Voluntary Programs

12. Renewable Fuels Standard (RFS II)

13. Ways EPA is Addressing Climate ChangeRFS II—GHG Thresholds Fuels are required to meet GHG thresholds • Conventional Biofuel (ethanol derived from corn starch) • Must meet 20% lifecycle GHG threshold • Only applies to fuel produced in new facilities • Advanced Biofuel • Essentially anything but corn starch ethanol • Must meet a 50% lifecycle GHG threshold • Biomass-Based Diesel • E.g., Biodiesel, “renewable diesel” not processed with petro • Must meet a 50% lifecycle GHG threshold • 20-50% still counts as renewable fuel • Cellulosic Biofuel • E.g., cellulosic ethanol, BTL diesel • Must meet a 60% lifecycle GHG threshold EPA able to adjust thresholds by as much as 10%

14. Ways EPA is Addressing Climate Change RFS II—Fuel Lifecycle GHG Assessment Background on lifecycle analysis: • Compilation of the GHG impacts of a fuel throughout its lifecycle • Production / extraction of feedstock • Feedstock transportation • Fuel production • Fuel distribution • Tailpipe emissions • Compares one or more fuels performing the same function

15. Proposed Rulemaking Geological Sequestration of Carbon Dioxide

16. Ways EPA is Addressing Climate ChangeProposed Rulemaking Geological Sequestration of CO2 • Applies to owners and operators of wells that will be used to inject CO2 into the subsurface for the purpose of long-term storage. • Proposes a new class of well (Class VI) • Key elements • Geological Siting Criteria • Area of Review • Well Construction Standards • Mechanical Integrity Testing • Operation and Monitoring Requirements • Well Closure and Post-Closure Care, • Financial Responsibility, and Monitoring • Public Participation and Communication

17. Ways EPA is Addressing Climate ChangeProposed Rulemaking Geological Sequestration of CO2 To submit written comments, the docket can be viewed at http://www.regulations.gov(Docket Id:EPA-HQ-OW-2008-0390). Comments must be received by November 24, 2008.

18. Mandatory GHG Reporting —Rulemaking

19. Ways EPA is Addressing Climate Change Mandatory GHG Reporting —Rulemaking • Objective of the Program – to collect comprehensive and accurate data relevant to future climate policy decisions, including potential future regulation under the Clean Air Act • Scope of Coverage • Define gases- “…to require mandatory reporting of greenhouse gas emissions” • CO2, CH4, N2O, HFC, PFC, SF6 • Both upstream and downstream sources- “The Agency is further directed to include in its rule reporting of emissions resulting from upstream production and downstream sources…” • Upstream: fossil fuel and chemical producers and importers • Downstream: direct emitters - large industrial facilities

20. Ways EPA is Addressing Climate Change Mandatory GHG Reporting —Rulemaking • Timeline • Proposed Rule • Final Rule by June 2009

21. Voluntary Programs • Blue Skyways Collaborative • Sustainable Skylines • Landfill Methane Outreach Program • AgSTAR

22. Questions? Thank you! Michelle Eis EPA Region 7 Climate Change and Energy (913) 551-7325 eis.michelle@epa.gov