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Air Quality Update

March 4, 2002


OTC Reacts to Utility Emission Reduction Plan

Amidst a barrage of tough questioning, Jeffrey Holmstead, EPA's Chief of Air and Radiation, defended the agency's plan to reduce utility emissions before a group of Northeast environmental regulators. Holmstead delivered his remarks during the regular meeting of the Ozone Transport Commission (OTC) held last week in Baltimore.

Although the EPA official underscored the massive utility emissions reductions that the administration's new strategy is expected to generate, OTC members did not appear to be convinced. A number of state officials questioned Holmstead on the fine details of the plan and how it would lead to reductions in specific areas. Many OTC member states are struggling with emissions budgets.

In his remarks, Holmstead noted that the administration's initiative should alleviate the problems most areas are having with downwind transport of nitrogen oxides (NOx) and ozone. He also emphasized that "....many areas will achieve attainment." However, the air chief conceded that the new plan would not bring compliance with the ozone standard to every nonattainment area in the Northeast.

The administration announced the new multi-pollutant plan on February 14. The effort is largely a cap-and-trade program with reduction mandates for NOx, sulfur dioxide, and mercury. Voluntary cuts for carbon dioxide are also a part of the program with reductions in all the pollutants achieved by 2012.

Since Northeastern states have consistently cited downwind transport as one of the main culprits in their air quality troubles, the market-based cap-and-trade is expected to target the transport phenomenon. EPA's Holmstead noted that current Clean Air Act provisions would not support the emission cuts written into the administration's new proposal. He added that a tight emissions cap is needed in addition to other regulatory efforts.

A number of OTC officials expressed little confidence in the cap-and-trade approach. One representative from Delaware questioned the capability of market-based initiatives to generate regional reductions. Some also questioned the extended time line referring to recent delays for implementation of EPA's long-awaited NOx SIP call--another plan focusing on aid to the Northeast.

Talks Continue on Major Diesel Rule

Settlement talks are heating up between EPA and engine manufacturers over the finer points of the heavy-duty diesel engine rule to be implemented in 2007--otherwise known as the "2007 rule." Environmental advocacy groups are wary over the talks and have pledged to resist any weakening of the major mobile source initiative.

The talks are aimed at adding more flexibility to the rule, but apparently fall short of making any adjustments to the comprehensive emissions standards that apply under normal operating conditions. The strict limits on diesel fuel sulfur content--a key part of the engine rule--also are reportedly off the table.

Environmental advocacy groups raised the red flag over the discussions after the U.S. Court of Appeals for the District of Columbia Circuit granted a motion from EPA and a host of engine manufacturers to postpone oral arguments on maximum emission limits, known as "not-to-exceed" or NTE limits. The NTE limits are one part of an EPA regulation that would bring about stricter emissions limits for diesel engines and drastically reduced sulfur content in diesel fuel.

The entire diesel manufacturing industry will be subject to the rule in 2007 although California is slated to impose the maximum limits by 2005. A similar limitation is set for implementation this year via a consent decree that applies to some of the nation's larger engine builders.

DOT, EPA Join in New Commuter Choice Website

Employers now have another tool at their disposal for fighting congestion and helping to bring about clean air. A new web site is now available that offers new information on commuter choices that sensitive to the environment.

Launched by U.S. EPA and DOT, the Commuter Choice Leadership Initiative is considered a leading example of a business-government partnership that aims to reduce air pollution through personal choices in vehicle use. The goal of the initiatives is to reduce traffic and the air pollution it generates from at least 15 million motor vehicles.

The joint agency website sheds light on how employers and employees alike can save money on environmentally sound commuting, what employers need to become a registered Commuter Choice Employer, and information on teleworking, ridesharing, guaranteed-ride-home programs, and other areas of interest to workers and managers.

The website features a list of more than 200 employers that have committed to meeting the National Standard of Excellence for employers in providing commuter choice benefits. The initiative is found at www.commuterchoice.gov

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