US chamber asks EPA for way to document foreign pollution sources

Washington (Platts)--13Dec2006

The US Chamber of Commerce Wednesday asked the Bush administration to
clarify how states and counties found to be in violation of US air-quality
standards can prove that their problems are caused by pollution that
originates in China and other countries.

In a petition to the Environmental Protection Agency, the business group
called for a rulemaking to clarify provisions in the Clean Air Act, saying
that "[i]n numerous instances, states or counties would be able to comply with
attainment standards but for emissions originating from outside the United
States."

William Kovacs, the chamber's vice president for environment, technology
and regulatory affairs, said US businesses -- including electricity generators
and other energy-related enterprises -- often encounter resistance when they
try to expand or open new outlets in so-called "non-attainment" areas because
local air-quality officials do not want to grant additional emissions permits
that would make the situation worse.

Consequently, many businesses avoid locating in non-attainment areas,
while "some go overseas to China" or to other countries with relatively lax
environmental laws, Kovacs said.

The Clean Air Act does allow non-attainment areas to argue to EPA that
their status is due to foreign emissions. But the chamber says this language
is effectively worthless, because EPA has not issued guidelines detailing
exactly what type of evidence areas must submit to prove that their
non-attainment status is the result of emissions from abroad.

The chamber asksed EPA to craft a rule that gives non-attainment
areas "a means to readily discount the impact of all extraterritorial
emissions." This rule should "clearly set forth the standards, procedures and
guidelines that EPA will use" to consider requests for relief.

Kovacs told reporters he did not know how many non-attainment areas would
meet EPA's air-quality standards if they could discount the fraction of
emissions that come from overseas. In fact, only a few have made such a
request.

Bill Becker, executive director of the National Association of Clean Air
Agencies, which represents state and local air-pollution officials, said he
was skeptical of the chamber's efforts.

"Blaming India and China for non-attainment problems in the United States
is inappropriate," Becker said. "There are more effective ways to help states
and localities clean up the air."

Frank O'Donnell of Clean Air Watch, an environmental group, took an even
harder line. "This is nothing other than an attempt by the chamber to shift
the blame about the pollution caused by its member-companies," O'Donnell said.

EPA has 90 days to respond to the chamber's petition. Asked if the chamber
would take legal action if EPA declines to launch the requested rulemaking,
Kovacs said, "[w]e've been known to do that in the past."

--Brian Hansen, brian_hansen@platts.com

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