Climate Change Developments at EPA R4 Air Director Spring Meeting June 3-5, 2008

1. Climate Change Developments at EPA R4 Air Director Spring MeetingJune 3-5, 2008 Kenneth Mitchell, Ph.D., Deputy Director Air, Pesticides, and Toxics Management Division U.S. EPA Region 4

2. Outline • Mandatory Reporting Rule for GHG Emissions • Advance Notice of Proposed Rulemaking on Regulating Greenhouse Gases under the Clean Air Act • National Water Program Strategy: Response to Climate Change • Proposed Rule for Carbon Dioxide Injection and Geologic Sequestration (CCS)

3. Mandatory GHG Emissions Reporting FY2008 Consolidated Appropriations Amendment: “… not less than $3,500,000 shall be provided for activities to develop and publish a draft rule not later than 9 months after the date of enactment of this Act, and a final rule not later than 18 months after the date of enactment of this Act, to require mandatory reporting of greenhouse gas emissions above appropriate thresholds in all sectors of the economy…” Accompanying Explanatory Statement: The Agency shall "use its existing authority under the Clean Air Act" to develop a mandatory GHG reporting rule. "The Agency is further directed to include in its rule reporting of emissions resulting from upstream production and downstream sources, to the extent that the Administrator deems it appropriate. The Administrator shall determine appropriate thresholds of emissions above which reporting is required, and how frequently reports shall be submitted to EPA. The Administrator shall have discretion to use existing reporting requirements for electric generating units under Section 821 of the Clean Air Act...."

4. U.S. 2005 GHG Emissions

5. Mandatory GHG Emissions Reporting • Objective - 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

6. Mandatory GHG Emissions Reporting • Proposed rule by September 2008, final rule by June 2009 • EPA will involve agency and interagency expertise • Have already worked extensively with interagency counterparts on measurement and reporting issues (e.g., US GHG inventory, IPCC guidelines) • EPA welcomes stakeholder input and plans to reach out to stakeholders through information sharing sessions http://www.epa.gov/climatechange/emissions/ghgrulemaking.html

7. Advanced Notice of Proposed Rulemaking (ANPR) • March 27, 2008, letter from EPA Administrator Steve Johnson to Congress “…implementing the Supreme Court's decision [Massachusetts v. EPA] could affect many sources beyond just the cars and trucks considered by the Court, including schools, hospitals, factories, power plants, aircraft and ships. In fact, the Agency currently has many pending petitions, lawsuits, and deadlines that must be viewed in light of the Supreme Court's decision.”

8. Advanced Notice of Proposed Rulemaking (ANPR) • “….as the Act is structured, any regulation of greenhouse gases - even from mobile sources - could automatically result in other regulations applying to stationary sources and extend to small sources including many not previously regulated under the Clean Air Act. • Consequently, any individual decision on whether and how sources and gases should be regulated may dictate future regulatory actions to address climate change.”

9. Advanced Notice of Proposed Rulemaking (ANPR) • An ANPR “…will allow EPA to solicit public input and relevant information regarding these interconnections and their possible regulatory requirements.” • The ANPR will be: • Issued later this spring • will be followed by a public comment period • EPA will then consider how to best respond to the Supreme Court decision and its implications under the Clean Air Act

10. National Water Program Strategy: Response to Climate Change • This draft document represents the National Water Program’s initial effort to identify: • Potential impacts of climate change for clean water and drinking water programs • Define actions to respond to these impacts • Potential water impacts include: • Increases in water pollution problems • More extreme water-related events • Changes to the availability of drinking water supplies • Waterbody boundary movement and displacement • Changing aquatic biology • Collective impacts on coastal areas • Comments on the draft document are due June 10, 2008 http://www.epa.gov/water/climatechange/index.html

11. Carbon Sequestration • EPA has authority for underground injection of carbon dioxide (CO2) under the SDWA Underground Injection Control (UIC) program • Research efforts to evaluate the technical aspects of CO2 geologic sequestration are underway • Class V Experimental Technology Well Guidance for Pilot Geologic Sequestration Projects released in March, 2007 • Regulations now in development will address future full-scale projects

12. Carbon Sequestration • In October, 2007, EPA announced plans to develop regulations to establish a clear path for geologic sequestration • The regulations will ensure a consistent and effective permit system under the SDWA for commercial-scale geologic sequestration programs to help reduce the effects of climate change • EPA plans to propose regulatory changes to the UIC program in the summer of 2008 and will invite the public and stakeholders to provide input throughout the rule development process http://www.epa.gov/climatechange/emissions/co2_geosequest.html