AUGUST 20, 2010

A federal task force has released a report outlining obstacles and next steps for making carbon capture and storage (CCS) technology viable in the United States. The group, pulled together from 14 executive departments and agencies led by the U.S. Department of Energy (DOE) and Environmental Protection Agency (EPA), said a lack of comprehensive climate change legislation is the key barrier to widespread use of CCS.

Without a carbon price and appropriate financial incentives for new technologies, there is no stable framework for investment in low-carbon technologies such as CCS,” the report said.

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JULY 16, 2010

The U.S. Environmental Protection Agency (EPA) proposed new regulations last week that would impose tougher limits on power plant emissions of smog- and acid rain-forming sulfur dioxide (SO₂) and nitrogen oxides (NO_x). The revamped rules would rely less on emissions trading across state lines, striking a blow to the cap-and-trade system currently in place.

The proposed “Transport Rule” would require 31 states and the District of Columbia to reduce “transported” emissions, which can travel long distances over state lines. The new rule seeks to replace and improve the 2005 Clean Air Interstate Rule (CAIR)—the U.S. Court of Appeals for the D.C. Circuit ordered EPA to revise CAIR in July 2008, citing conflicts with existing Clean Air Act regulations.

EPA anticipates power plants can meet new reduction requirements by operating currently installed scrubbers, investing in more control equipment or using low-sulfur coal. The annual cost of compliance would reach $2.8 billion in 2014, according to EPA estimates. Emissions trading would be allowed within an individual state but limited between multiple states.

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MAY 14, 2010

On May 4, the Environmental Protection Agency (EPA) invited public comment on two alternatives for a proposed rule to regulate disposal and management of coal combustion residuals (CCRs), commonly called coal ash. The proposal marks the first time EPA has issued regulations for CCR disposal. CCRs are currently disposed of in liquid form in large surface impoundments or as a solid in landfills. EPA is seeking to ensure controls are in place at new facilities, to require liners in surface impoundments and to provide incentives for a transition away from liquid impoundments to dry storage in landfills, which is considered a safer alternative.

This action came in response to a 2008 accident at an impoundment at the Tennessee Valley Authority’s Kingston Fossil Plant in east Tennessee. The massive spill flooded more than 300 acres of land, displaced residents, contaminated the Emory and Clinch Rivers, incurred hundreds of millions of dollars in cleanup costs and caused widespread environmental damage.

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APRIL 9, 2010

On April 1, EPA acted to strengthen Clean Water Act permitting requirements for mountaintop mining (MTM) projects in a move that could significantly restrict coal mining in Appalachia.

MTM uses explosives to expose coal reserves near the surface of steep terrain, primarily in Central Appalachia. Large volumes of rock are moved to designated fill areas—usually valleys below the mining site. Scientific evidence indicates runoff from MTM sites can damage ecosystems by turning fresh water sources into salt water.

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APRIL 9, 2010

On April 1, the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) acted jointly to establish the first federal greenhouse gas (GHG) emission standards under the Clean Air Act (CAA) and to increase significantly the fuel economy standards for passenger cars and light trucks. The announcement followed an EPA decision on permits for stationary GHG sources, including power plants and industrial facilities.

Starting with 2012 models, vehicle manufacturers must improve fleet-wide fuel economy and reduce fleet-wide GHG emissions by about 5 percent per year. By 2016, NHTSA will require an estimated average fuel economy of 34.1 mpg, while EPA will require a combined average vehicle emission level of 250 grams of carbon dioxide per mile. The new rules will go into effect January 2, 2011. California has agreed to accept the EPA standards, a major step toward regulatory uniformity.

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MARCH 12, 2010

Bank of America, JP Morgan Chase and other large banks are facing increasing demands by Fannie Mae and Freddie Mac to buy back defectively underwritten mortgages, which could undermine the banks’ continued recovery, according to the Wall Street Journal. Investors holding mortgages can force lenders to take back the loans if borrowers lied about their income, relied on a fraudulent home appraisal or other reasons. Fannie and Freddie, which were taken over by the U.S. government 18 months ago, claim that many loans they bought or guaranteed were made improperly and are forcing the banks to buy them back at par. Last year, lenders bought back about $20 billion of loans, according to Barclays Capital, and about half of this amount was written off because the loans were delinquent.

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DECEMBER 18, 2009

Senator Lisa Murkowski of Alaska said this week that she plans to file a disapproval resolution in the Senate to stop the U.S. Environmental Protection Agency from regulating greenhouse gas emissions under the Clean Air Act, according to SNL Energy. Murkowski argued that Congress should be given the time it needs to draft and debate climate change legislation rather than the EPA issuing new regulations. A disapproval resolution is referred to the committee of jurisdiction, which in this case will be the Senate Committee on Environmental and Public Works. If the committee does not favorably report the resolution within 20 calendar days, it may be discharged upon petition by 30 senators. Once a disapproval resolution is placed on the Senate calendar, it is then subject to expedited consideration on the Senate floor and not subject to filibuster.

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