In this issue:
EPA PROPOSES RULES ON CLEAN AIR ACT PERMITTING FOR GREENHOUSE GAS EMISSIONS
The Environmental Protection Agency (EPA) has proposed two rules to ensure that businesses planning to build new, large facilities or make major expansions to existing ones will be able to obtain Clean Air Act permits that address their GHG emissions. In the spring of 2010, EPA finalized the GHG “Tailoring Rule,” which specifies that beginning in 2011, projects that will increase GHG emissions substantially will require an air permit. The “Tailoring Rule” covers large industrial facilities, e.g., power plants and oil refineries, which are responsible for about 70 percent of the GHGs from stationary sources.
The “Tailoring Rule” is controversial because the initial threshold for regulation of air pollutants under the “Clean Air Act (P.L. 101-549)” was 100 to 250 tons, applied to pollutants like methane and nitrous oxide. The EPA issued an endangerment finding in 2009 and, in an effort to reduce the economic burden, initially proposed a threshold of 25,000 tons of emissions, which was adopted by Congress in various legislative proposals, none of which have been enacted. In the final rule, after the endangerment finding the threshold was tripled to 75,000 tons, and even raised for industrial emitters to 100,000 tons, which would exempt a number of sources. This was intentional, after some estimates, from comments received by the EPA, during the rulemaking process, indicated that unintended emitters would be brought under this regulation, such as large apartment buildings and restaurants. Therefore, lawsuits are being filed by organizations and groups seeking to reduce the threshold considerably. Conversely, the state of Texas is suing in the D.C. Court of Appeals in order to forgo complying with the new EPA rule.
In the first rule, EPA has proposed requiring permitting programs in 13 states to make changes to their implementation plans to ensure that GHG emissions will be covered. All other states that implement an EPA-approved air permitting program must review their existing permitting authority and inform EPA if their programs do not address GHG emissions. Because some states may not be able to develop and submit revisions to their plans before the Tailoring Rule becomes effective in 2011, in the second rule, EPA is proposing a federal implementation plan, which would allow EPA to issue permits for large GHG emitters located in these states. This would be a temporary measure that is in place until the state can revise its own plan and resume responsibility for GHG permitting.
EPA will accept comments on the first proposal for updated state implementation plans for 30 days after publication in the Federal Register. EPA has scheduled a hearing on the second proposal for the federal implementation plan on August 25, 2010, and will accept comments for 30 days after that hearing. The agency is working to finalize these rules prior to January 2, 2011, the earliest GHG permitting requirements will be effective.
A fact sheet outlining the two proposed rules may be read at: http://www.epa.gov/nsr/documents/20100810SIPFIPFactSheet.pdf.
The proposals themselves are available at: http://www.epa.gov/nsr/documents/20100810FinalGHGSIPCallProposal.pdf
and http://www.epa.gov/nsr/documents/20100810GHGFIPProposal.pdf, respectively.
Information for persons desiring to attend the August 25th public hearing may be viewed at: http://www.epa.gov/nsr/documents/20100810NoticeofPublicHearing.pdf
Robert Rains handles public policy-related environmental issues for ASME. He can be reached at: rainsr@asme.org
DOE ANNOUNCES NEW LOAN GUARANTEE SOLICITATION FOR RENEWABLE ENERGY
MANUFACTURING PROJECTS
The Department of Energy (DOE) has announced a new loan guarantee solicitation, the “Commercial Technology Manufacturing Systems and Components” solicitation, to support the deployment of renewable energy technologies that reduce greenhouse gas (GHG) emissions and help increase employment in the nation’s green manufacturing sector. The solicitation seeks applications for projects that manufacture commercial technology renewable energy systems and components, such as wind turbine systems, blades or solar photovoltaic components.
"The Department's manufacturing solicitation will help more Americans get back to work while accelerating economic development," said DOE Secretary Steven Chu. "To keep pace in the global market, we need to build and expand U.S.-based state-of-the-art manufacturing facilities."
As with earlier solicitations, the manufacturing solicitation will consist of a two-step process with rolling deadlines. The first Part I deadline is August 31, 2010, and the first Part II deadline is October 31, 2010. Final Part I applications are due November 30, 2010 and final Part II applications are due January 31, 2011. Applicants are strongly encouraged to get their applications in early since projects must meet all statutory and regulatory requirements and commence construction no later than September 30, 2011. The Department will make available up to $750 million to pay the credit subsidy costs of loan guarantees issued through this solicitation.
This comes on the heels of an announcement this week by Energy Secretary Steven Chu of the launch of a new online application portal that will enhance access to the Department of Energy’s open solicitations for loan guarantees while also simplifying and expediting the application process. The LGP has been criticized, specifically by the Government Accountability Office (GAO), that the program has lacked consistency with respect to the processing of applications.
Key features of the new online portal include:
- The system is designed to guide applicants through the application process by making suggestions as to applicable solicitations based on the information provided by the applicant.
- Applicants will receive instantaneous guidance as to how they might increase the likelihood that their applications will continue to the next phase.
- The portal offers comprehensive security features such as encryption algorithms and password protection to ensure that only the applicant and identified Department reviewers can access the files.
For additional information, please visit: http://www.lgprogram.energy.gov/press/081110-2.pdf.
For information on how to file a loan guarantee application on-line, go to: http://www.lgprogram.energy.gov/press/081110-1.pdf
Robert Rains handles public policy-related energy issues for ASME. He can be reached at: rainsr@asme.org
LEGISLATION TO SUPPORT ROBOTICS AND STEM COMPETITIONS INTRODUCED
Prior to adjourning for the August Congressional recess, Senator Jeanne Shaheen (D-NH) introduced legislation (S. 3732) to establish the Innovation Inspiration School Grant Program, which would provide funding to states and local school districts to allow them to participate in quality non-traditional STEM programs, such as FIRST Robotics.
"American students must have access to better STEM training and mentors in the field if they are going to be able to compete in today's global economy. The legislation we unveiled addresses that need," said Shaheen.
Shaheen also cited research that showed “students who participate in FIRST robotics program are more likely to attend college on a full-time basis compared to other students; are nearly two times as likely to major in a science or engineering field; and are significantly more likely to achieve a post-graduate degree.”
FIRST Robotics Founder Dean Kamen praised the legislation, and said it would “help us give people better access to non-traditional STEM programs, and encourage students to pursue higher education and a career in science and technology.”
More information about Sen. Shaheen’s legislation can be found at: http://shaheen.senate.gov/news/press/release/?id=38BEAE03-1DF5-4EB3-ABD1-CBADE3CAA376
To review the text of the legislation, please visit the Library of Congress web site: http://thomas.loc.gov, and search by bill number (S. 3732).
ASME has been a longtime supporter of the FIRST Robotics competition.
Melissa Carl handles public policy-related STEM issues for ASME. She can be reached at: carlm@asme.org
DOE REINSTATES SECRETARY OF ENERGY ADVISORY BOARD
DOE has announced the members of the Secretary of Energy Advisory Board (SEAB). Eliminated during the last administration, SEAB is being reestablished under the Federal Advisory Committee Act (FACA). The twelve member board comprised of scientists, business executives, academics and former government officials will serve as an independent advisory committee to Secretary Chu.
"I am honored that this talented group of individuals has agreed to offer their service to the Department and to the Nation," said Secretary Chu. "They will be providing their expertise and experience at a critical time for our country as we chart a new course toward a clean energy future."
The Board will provide advice and recommendations to the Secretary on DOE’s basic and applied research, economic and national security policy, educational issues, operational issues and other activities as directed by the Secretary. The board is expected to meet twice a year and at other times as needed. Subcommittees are also expected to be organized under SEAB.
Members of the SEAB are:
- Norman Augustine, Former Chairman and CEO, Lockheed Martin and Former Under Secretary for the Army;
- Ralph Cicerone, President of National Academy of Sciences;
- John Deutch, MIT Chemist and Former Under Secretary of Energy;
- Nicholas Donofrio, Former EVP of Innovation and Technology, IBM;
- Alexis Herman, Former Secretary of Labor;
- Chad Holliday, Jr., Former CEO of Dupont;
- Michael McQuade, Senior VP, United Technologies Corporation;
- William Perry, Former Secretary of Defense and Stanford University Professor;
- Arthur Rosenfeld, Former Commissioner, California Energy Commission;
- Susan Tierney, Managing Principle, Analysis Group;
- Steven Westly, Managing Partner, Westly Group; and,
- Daniel Yergin, President, Cambridge Energy Research Associates
Additional information on the SEAB and its activities is available at: http://vm1.hqadmin.doe.gov/seab/
Robert Rains handles public policy-related energy issues for ASME. He can be reached at: rainsr@asme.org
STUDY FINDS CLEAN ENERGY ECONOMY POISED FOR GROWTH
A recent study by The Pew Charitable Trusts, “The Clean Energy Economy: Repowering Jobs, Businesses and Investments Across America,” found that the clean energy economy has tremendous potential for growth. In part, this will be spurred by investments from both the government and private sector, as well as state and federal policy makers who are increasingly calling for reforms to drive economic renewal and sustain the environment. Pew’s research indicates that public policies “have great potential because they create significant incentives for both the private and public sectors to develop new technologies, infrastructure and processes for clean energy, efficiency and conservation.”
For the purpose of this study, Pew defines a clean energy economy as one which “generates jobs, businesses and investments while expanding clean energy production, increasing energy efficiency, reducing greenhouse gas emissions, waste and pollution, and conserving water and other natural resources.” The clean energy economy cuts across five categories:
- Clean Energy;
- Energy Efficiency;
- Environmentally Friendly Production;
- Conservation and Pollution Mitigation; and,
- Training and Support.
The data show that by 2007, more than 68,200 businesses across all 50 states and the District of Columbia accounted for 770,000 jobs that achieve the double bottom line of economic growth and environmental sustainability. The research also shows that between 1998 and 2007, clean energy economy jobs, i.e., a mix of white- and blue-collar positions, from scientists and engineers to electricians, machinists and teachers, grew by 9.1 percent, while total jobs grew by only 3.7 percent.
Sixty-five percent of today’s clean energy economy jobs fall into the category of Conservation and Pollution Mitigation. However, almost 80 percent of venture capital investments in 2008 were in the sectors of Clean Energy and Energy Efficiency. The flow of venture capital indicates which sectors are the most attractive to investors and have the greatest growth potential.
The 61-page report may be read at:
http://www.pewcenteronthestates.org/uploadedfiles/clean_economy_report_web.pdf. Additional information is available at: http://www.pewcenteronthestates.org/news_room_detail.aspx?id=52696
Robert Rains handles public policy-related energy issues for ASME. He can be reached at: rainsr@asme.org
PCAST SET TO MEET ON SEPTEMBER 2ND
The President’s Council of Advisors on Science and Technology (PCAST) will meet on September 2nd from 10 AM until 5 PM in the Keck Center of the National Academies. The morning keynote speaker will be Jeannette M. Wing, the President’s Professor of Computer Science at Carnegie Mellon University. The afternoon’s discussion will provide updates on three PCAST activities:
- K-12 Science, Technology, Engineering and Mathematics Education Study;
- Energy Technology Innovation System Study; and,
- Advanced Manufacturing Study.
The meeting will also be webcast, and there is no need to for persons planning to watch the webcast of the meeting to register.
For further information about the meeting, including the meeting agenda and the Federal Register notice, please visit: http://www.whitehouse.gov/administration/eop/ostp/pcast/meetings/future
THE ARTICLES CONTAINED IN CAPITOL UPDATE ARE NOT POSITIONS OF ASME OR ANY OF ITS SUB-ENTITIES, UNLESS SPECIFICALLY NOTED AS SUCH. THIS PUBLICATION IS DESIGNED TO INFORM ASME MEMBERS ABOUT ISSUES OF CONCERN BEING DEBATED AND DISCUSSED IN THE HALLS OF CONGRESS, IN THE STATES, AND IN THE FEDERAL AGENCIES.
EDITOR: Mary James Legatski, ASME Government Relations, 1828 L Street, NW, Suite 906, Washington, DC 20036-5104.