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Environment Update
Volume V, Number 2
May 17, 2004

An Information Service of the NCSL Standing Committee on Environment and Natural Resources

Previous Issues

EPA ISSUES FINAL NONROAD DIESEL RULE

On Tuesday, May 11, 2004, EPA Administrator Mike Leavitt signed EPA’s Clean Air Nonroad Diesel Rule.  This new rule is the most recent action by EPA on Clean Diesel and is a part of the Administrations overall effort to move ahead efforts to reduce pollution emissions this year from a wide variety of sources.  The final rule requires stringent pollution controls on diesel engines used in industries such as construction, agriculture and mining.  According to EPA the new standards will reduce emissions from nonroad diesel engines by 90 percent and reduce sulfur content in nonroad diesel fuel by 99 percent from current levels.  The new engine standards will take affect starting in 2008 and based on average expected equipment lifetime, this entire inventory should be upgraded by 2030.  The rule will likely be published in the Federal Register around the end of May.  More information on EPA's clean diesel programs, including the Clean Air Nonroad Diesel Rule, is available at: http://www.epa.gov/cleandiesel. Information about the Clean Air Rules of 2004 is available at: http://www.epa.gov/cleanair2004/.

MERCURY RULE COMMENTS EXTENDED

On April 29, U.S. EPA Administrator Michael Leavitt announced that state legislators and the public at-large would have until June 29, 2004 to comment on the proposed rule and supplemental notice regarding the regulation of mercury emissions primarily from electric utilities. The Administrator also announced that a final rule would not be promulgated until March 15, 2005, a three-month extension from an original target date of December 15, 2004. The proposed rule lays out three options for regulating mercury emissions. It suggests a 29% percent reduction by 2008 using maximum available control technology (MACT) under Section 112 of the Clean Air Act. It suggests a similar reduction by 2010 through a cap and trade program. Finally, EPA suggests a 30% reduction by 2010 (70% by 2018) using a cap and trade program under Section 111 of the Clean Air Act, thus not treating mercury as a hazardous pollutant. NCSL’s Environment and Natural Resources Committee conducted a session on mercury emissions at the recent Spring Forum, focusing on the three proposed approaches. A session on existing, developing and prospective technological tools to control mercury emissions will be the subject of a committee session at NCSL’s annual meeting in Salt Lake City.

OCEAN POLICY REPORT RELEASED

On April 20, 2004 the U.S. Commission on Ocean Policy issued the first comprehensive review of U.S. Ocean policy in 35 years.  The report focuses on ecosystem based management, contains 197 recommendations and includes states in a multi-faceted approach to protecting ocean resources from exploitation and pollution.  The Commission’s preliminary report is currently being reviewed by Governors with the deadline for comments being May 21^st.  In a May 10^th letter, the National Governor’s Association asked the Commission to extend by 60 days, until July 20, the comment period. (http://www.nga.org/nga/legislativeUpdate/letterDetailPrint/1,1421,6818,00.html)   Similar requests have been received by the Commission from the New England Governors Conference and a coalition of coastal states.  While no decision has been made yet the proposed extension has the support of Reps. Richard Pombo (R-Calif.) and Nick Rahall (D-W.Va.), the chairman and ranking member, respectively, of the House Resources Committee.  The preliminary report of the U.S. Commission on Ocean Policy and information on how to submit comments are available at http://www.oceancommission.gov.

ENERGY TAX PACKAGE MOVES THROUGH SENATE

On May 11^th, after rejecting efforts to strike the energy tax package from the corporate tax bill (S. 1637, the Jumpstart Our Business Strength (JOBS) Act), the Senate overwhelmingly passed the underlying bill by a vote of 92 to 5.  During the final day of debate the Senate voted 13-85 on an amendment by Sen. John McCain (R-AZ) that would have stricken the energy tile adopted previously as a part of t he manager’s amendment.  This is the first section of the revised Senate legislation (S. 2095) that has passed since the members of the Senate successfully blocked adoption of the conference agreement on H.R. 6 last November.  Prospects remain uncertain for the energy tax provision as the House now moves to take up its version of the legislation (H.R. 2896).  Also included in the JOBS bill were provisions on Brownfield Revitalization and the establishment of a water conservation tax credit.  This legislation is one of the few “must pass” items on the agenda during the remainder of the 108^th Congress in order to bring the United States into compliance with recent WTO decisions.

NCSL ENVIRONMENT AND NATURAL RESOURCES COMMITTEE MET IN APRIL

Key policy and issue discussions were held by NCSL’s Environment and Natural Resources Committee at NCSL’s Spring Forum held April 29-May 1, 2004 in Washington, D.C. The committee conducted issue discussion on mercury emissions, brownfields, water security, newly-issued ocean policy and wetlands. Power point presentations on these sessions can soon be located at NCSL’s Environment and Natural Resources webpage. The committee renewed its policies on oil spill prevention, environmental federalism and state-federal relations for environmental programs. It deferred action on its federal facilities compliance policy until the annual meeting. Two policies on mercury emissions were introduced. One calling for EPA to control mercury as a hazardous pollutant and to oppose cap and trade options as preemptive was withdrawn. A second supporting the cap and trade option was defeated.

The Environment and Natural Resources Committee will conduct sessions on mercury emissions technology, electronic waste, state clean car legislation, state water revolving funds and clean air (ozone non-attainment and new source review) at the annual meeting in Salt Lake City set for July 19-23, 2004. Policies up for renewal include those on Emission Standards for Mobile Sources, Superfund, Wetlands, Combined Animal Feeding Operations, National Energy and Federal Facilities Compliance. All are accessible on NCSL’s Environment and Natural Resources Committee webpage.