US EPA outlines plan to deal with California global-warming rules

Washington (Platts)--30Apr2007

The Bush administration officially outlined Monday how it will deal with
California's request to implement more stringent emissions standards for
cars and trucks than what the federal government currently uses.

The US Environmental Protection Agency detailed the plan in a two-page
Federal Register notice. It is up to EPA to decide whether it will grant
California the special Clean Air Act waiver it to implement tougher standards.

EPA said in the notice that it will hold a public hearing on
California's waiver request in Washington May 22. EPA will accept written
public comments about the request until June 15, the agency said. While the
hearing and comment period both had been announced previously, the Monday
notice offers more details as to how EPA plans to make a decision on
California's request for the waiver.

In the notice, EPA said it would deny California's request if it
determines that the state's emissions standards are "arbitrary and
capricious," or if the agency determines that the Golden State does not need
the standards to address "extraordinary or compelling conditions."

EPA's decision promises to have big implications for broader US energy
policy, since California adopted the standards in order to reduce motor
vehicle emissions of carbon dioxide and other greenhouse gases that the state
says are driving global warming. California's standards would require Ford,
General Motors and other automakers to begin reducing greenhouse gas emissions
on vehicles they sell in the state beginning in 2009. Automakers would have to
cut emissions 30% below current levels by 2016.

EPA said Monday that it would consider comments on how the Supreme
Court's recent ruling in a landmark global-warming case should affect its
decision on California's waiver request. The high court ruled April 2 that CO2
and other greenhouse gases are "pollutants" under the Clean Air Act, and that
EPA did not adequately justify its refusal to regulate heat-trapping emissions
from new motor vehicles.

--Brian Hansen, brian_hansen@platts.com