Comment on Tailoring Rule, Marlo Lewis, Competitive  Enterprise Institute, PDF Copy
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Comment on Tailoring Rule, Marlo Lewis, Competitive Enterprise Institute, PDF Copy

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December 28, 2009 EPA Docket Center Attention Docket ID No. EPA-HQ-OAR-2009-0517 By electronic delivery to: a-and-r-docket@epa.gov Re: Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule Contact Information ame: Marlo Lewis, Ph.D. Organization: Competitive Enterprise Institute (CEI) Mailing Address: 1899 L Street, 12th Floor Washington, DC 20036 Phone: 202-669-6693 E#mail: mlewis@cei.org The Competitive Enterprise Institute (CEI), a non-profit free-market public policy group specializing in regulatory issues, is pleased to submit this comment on the Environmental Protection Agency's (EPA's) proposed Prevention of Significant Deterioration and Title V 1Greenhouse Gas Tailoring Rule. Abstract: In Massachusetts v. EPA, the Supreme Court legislated from the bench, authorizing and indeed pushing EPA to control emissions of greenhouse gases (GHGs) for climate change purposes. This is a policy decision of immense economic and political magnitude that Congress never intended or approved when it enacted and amended the Clean Air Act (CAA or Act). Regulating GHGs under the CAA leads inexorably to "absurd results," including an 1 EPA, Prevention of Significant Deterioration anitdle TV Greenhouse Gas Tailoring Rule; Proposed Ru lOec,tober 27, 2009, 74 FR, 55292-55365; hereafter citeidlo rains gT aRule. 2 ...

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                                               !" # $#%" & ''$$()'*%   Re: Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule   Contact Information ame: +'# ,-. / Organization: )% ). .0 12 Mailing Address:  , 3  / 4# 5'./*  67 Phone & 77776 E#mail: #-.(*    8/ )% ). .0 12 ' )9 9' )0# )#" *0) .)'#:*  *0#'" ..0. . )#'.$  .0 /.   / %'#  *";. 1;.2 )).$ Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule    Abstract:  Massachusetts v. EPA / 30) 0 #*.#'$ 9 / / '0/:* '$ $$ )0./*   # ... 9 */0. *'.. 1<<.2 9 #' /'* )0).. 8/. . ' )#" $. 9 .  '$ )#'# '*0$ /' *.. % $$  '))%$ -/  '$ '$ '$$ / #'   1  2 *0#'* <<. 0$ /  #'$. ='#"  >'.0$ .0#.> #0$* '                                                            1 EPA, Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule; Proposed Rule, October  27, 2009, 74 FR, 55292-55365; hereafter cited as Tailoring Rule.
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I. Introduction
                                                           2 Tailoring Rule, 74 FR, 55349. 3 EPA, National Highway Traffic Safety Administration, Proposed Rulemaking to Establish Light-Duty Vehicle Greenhouse Gas Emission Standards and Corporate Average Fuel Economy Standards; Proposed Rule, 4 EPA, Cause or Contribute Findings for Greenhouse Gases Under Section 202(a) of the Clean Air Act; Final Rule, December 15, 2009, 74 FR 66496-66546. 5 Marlo Lewis, Competitive Enterprise Institute Comment on EPA Endangerment Proposal, June 15, 2009, http://cei.org/cei_files/fm/active/0/Marlo%20Lewis,%20Competitive%20Enterprise%20Institute,%20Comment%2 0on%20Endangerment%20Proposal,%20June%2015,%202009.pdf; Sam Kazman and Hans Bader, Supplement to the October 5th Petition of the Competitive Enterprise Institute to Reopen This Proceeding In Light of Newly Released Information, December 2, 2009, http://cei.org/rcandtestimony/2009/12/02/amended-petition-epa-proposed-endangerment-finding-greenhouse-gases; Patrick J. Michaels and Paul C. Knappenberger, Scientific Shortcomings in the EPA's Endangerment Finding from Greenhouse Gases, Cato Journal , Vol. 29, No. 3 (Fall 2009), http://www.cato.org/pubs/journal/cj29n3/cj29n3-8.pdf; U.S. Chamber of Commerce, Petition for EPA to Conduct Its Endangerment Finding Proceeding On The Record, June 23, 2009, http://www.uschamber.com/NR/rdonlyres/ekngxi7x62z4t4cmyi3abtysipk5a4tcnde4kbcaeqvqmb4pywfc2wq5vfya eybgdu3hnkazghand2phuhxyyetqane/USCOCPetitionJune232009.pdf.
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 8/ #9 )).$ " / 8'#* 0# . )'" )/'.* $- '9 .= "'. 7 8/ )).$ #9 . '#. #*'##" $00. '0.  9#0. #' .'0" #'*0'* +% % 9 0)/#$ " 0. / 8'#* 0# )%$.  ) 9 / )#' 0$. '$ ' )'. 9 ' $=$ 1 2 *0#' 0$ / ''#   0'#" 3'$'$. 132 )*'  ' *0#'" ' #*'##" ?0$ " ;. $'* 9$*   . '* ' 0. *'# * /'  ' # / *0#'" '.'$ **$ " . $'* 9$* '$  %/# ... 0#  .. #'0/* ' '@ *0#'" '..'0#  ' " '#'$"  .% $... '%* .- / -$  -0#$ / ') / -/#-$  ' )#'# '#'./ '*'. / *" '$ / '' '$.' ) C !' 18D2 )#'.  $0 ' .#0 9 $.'))%'#  %0 / $'* 9$*  ) +'./' !#'0 182 /'. $0$  6 ' ## -/ %  .)..  %0 Massachusetts v. EPA.  -0#$   ;. . .   )). /. *..'# '%.  II.    : Tailoring Disaster
5/" .  '0*0'* ' * 9 *#'# -'* *0#'. /' *.. % %$ 9  '))%$E !'0. / 30) 0  Mass. v. EPA  $$$  #*.#' *#'# -'* )#" 9 / /
 Mass. v. EPA  #*' *0). #$ " ' $: .' '". *'# ')$  $ ' $ 0 '0$ *.. '$ ). F"# )#.  / G3 " /0*/ @0$'# 9' 8/" 90$ 9% -##* ')#.  / 0 -/ ..'##" 0#$ /' *.. '0/:$   *0#' <<. 9 #' /'* )0).. -/  '$  3    H $'$. 9 *#'# -'* ' ' )0#  8/ 0I. $. H '                                                            6 Tailoring Rule, 74 FR 55294-55295. 7 House Energy and Commerce Committee Republicans, Press Release: Republicans to Introduce Disapproval Resolution on EPA Endangerment Finding, December 17, 2009, http://republicans.energycommerce.house.gov/news/PRArticle.aspx?NewsID=7603. 8 Rep. Marsha Blackburn's (R-TN) H.R. 391, "To amend the Clean Air Act to ensure that greenhouse gases are not subject to the Act, and for other purposes." 9 Massachusetts v. Environmental Protection Agency, 549 U.S. 497 (2007).
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8/ 0 '@" -// '%#"  $.*00.#" @$ .)$ ;. '*0 '.$  FDA v. Brown & Williamson Tobacco Corp  /' *0#'* / '  9 90#.  ... -'. ' $. 9 *' J '$ )#'# .*9'K /' *.. -0#$  $#*'   ' '$.'% '*"  J. ") ' 9'./K 8/ '@" /#$ /' ' $'* 9$* -0#$  #'$   0$' J= '.0.K #"  *0#' << ... 9 -  %/#. '$ #" '9 *%* J')))' .$'K  )#' .. '$ /#*'# 9'.#" '. ?0$ " 3   ..'$ .  -' 90# "  #.. )' ' / )0)M  -'. / #" )''# .?0 9 ' $.  9'% 9 )#'99. / '@" .0**.$  8/' /. -'. ' .0)$0.#" 9'#. /'':' 9 / '# ..0. '$ )#'. 9 / '. /'.  #' 9 .   8/ 0 '@" )##" *$ / $ '0
                                                           10 FDA v Brown & Williamson Tobacco Corp, 529 U.S. 120, 123 (2001) 11 Massachusetts v. Environmental Protection Agency, 549 U.S. 497, 531 (2007). 12 Testimony of Peter Glaser and John Cline on EPA's Approach to Addressing Greenhouse Gas Emissions in the Wake of the Supreme Court's Decision in Massachusetts v. EPA, House Committee on Oversight and Government Reform, November 8, 2007; Testimony of Peter Glaser on the U.S. Environmental Protection Agency's Response to
5
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                                                                                                                                                                                           the Supreme Court's Decision in Massachusetts v. EPA, House Select Committee on Energy Independence and Global Warming, March 13, 2008; Testimony of Peter Glaser on Strengths and Weaknesses of Regulating Greenhouse Gases under the Clean Air Act, Subcommittee on Energy and Air Quality of the House Committee on Energy and Commerce, April 10, 2008; Peter Glaser, Responses to Questions of the House Select Committee on Energy Independence and Global Warming, September 4, 2008; Portia Mills & Mark Mills, A Regulatory Burden: The Compliance Dimension of Regulating CO2 as a Pollutant, U.S. Chamber of Commerce, September 2008; EPA, 73 FR, Advanced Notice of Proposed Rulemaking: Regulating Greenhouse Gas Emissions under the Clean Air Act; Proposed Rule, July 30, 2008; hereafter cited as ANPR. 13 ANPR, 73 FR, 44499, 44511. 14 ANPR, 73 FR, 44507. 15 Tailoring Rule, 74 FR, 55292 (emphasis added). 16 Tailoring Rule, 74 FR, 55301, 55304. 17 Tailoring Rule, 74, FR, 55294. 18 Tailoring Rule, 74, FR, 55319.
6
 8/  )* )*'. -0#$ './ 0$ / - -*/ )0* ' 9:  -.0 '$ /0.* ##. 9 9.  #*'# # 8/'.  Mass. v. EPA  / #'   . '0   '  -* '## '$ .'*/ ' .'## 0...
8 ' ' 3 ) 9. 0. 0$' ' )#= /'# %.*'   $ /- /" -## )#" -/ J. '%'#'# # /#*"K 1!82 .'$'$. % ')' 9 '" %.. ?0$  .'## !8)#' /#*" / 3 )* ).. . .#" '$ .0*  '  "' '/ )  '%'* . Q '$ 77 0$ /0. 9 .0.  ' '$ Q6 '$ 6 /0. 9   ' .' '*"  )..  8/ 3 '$.'% 0$ -0#$  #/'#  . .'## 0....  ..0* /' )* '*. -0#$ /'%  .)$ B6 /0.  ).. / '%'* -8# A ) 9 '#  .$'#  .0. 1 R 9 /  $$ 9 / '%'* $0.'# )2  .'. /' / J'# '-$ '$$'# 0$ 9 )* '0/. 9 8# A ). 9 '$$* << ... ' / 8L /./#$ -0#$  6B ## /0. -// -0#$ . % Q ##K      /' )* '*. -0#$ .)$ '## /'  '$ "  ).. / ). 9 '))#'. -/ /'% ..'##" /*  ) '0. /" /'%  / #*'. 0$ /  #. R 9 / 7 ## . /' -0#$ $ 8# A ). 9  -0#$  9#* >)">  >/##-> ).  4 / 0# /" -0#$ '#. /'%  )'" .. 9.  /#) % / .'$ Q ##  8# A '$.'% .. 1 3 2 8/ ** ' 9 8# A .. 9. . QB6 )  6  .'## 0... *  8L 9  */ /'%  )'" '0'# 9. 9 QB6    '$$  -/'% .0.  .)  $ )* '$ )')- It would get nothing of value in return  8# A 9  -0#$ '*0'#" . ' - $ 9 *% -'.                                                            19 EPA, New Source Review Workshop Manual: Prevention of Significant Deterioration and Nonattainment Area Permitting, October 1999, http://www.epa.gov/ttn/nsr/gen/wkshpman.pdf. 20 Carrie Wheeler, Operating Permits Group (C504-03), Air Quality Policy Division, Office of Air Quality Policy and Standards, Office of Air and Radiation, United States Environmental Protection Agency, RTP, North Carolina 27711, http://www.uschamber.com/assets/env/supportingreport.pdf. 2 1 Tailoring Rule, 74 FR, 55302. 22 Tailoring Rule, 74 FR, 55304, 55336. 23 Tailoring Rule, 74 FR, 55346.
7
III.    : Tailoring Absurdity
   8/ 8'#* 0# ))..  .0.)$ % ' .="' )$ / 3 ).0 )* )*' '$ 8# A )'* ). )*' 9 . * #.. /'  8L 9 ' $=$?0%'# 1 2  <<. '$  )/'.  >.'#$> )* )$0. 9 .'## '$ .'## . '9 / $ 9 / .="' )$ B     99  ))..  - ). 9 /  /*  /  '0/:.   .0.)$ / 3 '$ 8# A )%.. 9 .= "'. 9 .0. =$* / S 8L /./#$.  $. /  '0/: / >.'#$> )$0.  0#.  / 8'#* 0# 1=) 9 / 0. 9 *'# ).  / 8# A )*'2 8/ 8'#* 0# . '0'##" ' $* 0# . .0/  . prima facie ##*'#  ' 0.0'# '/ 9 / .)'' 9 )-.   %0. ?0. '..& G$ -/' '0/" '"  $%' . #''#" 9 / = 9 / .'0E  Chevron v. 'atural Resources Defense Council  / 30) 0 /#$ /' '$.'% '*. /'% .$'# $.  ) .'0. -/ / = . J.#  '*00. -/ .)  / .)9 ..0K  -% / . /* '*00. '0  .   .   )'$#" '... /'  0. $)' 9 ' J#'#K '))#' 9 / 3 '$ 8# A *0#'" /./#$. !0 J#'#K . @0. ' .':$ ."" 9 J#*'#K J#'-90#K  >.'0"> 8 @0.9" /. '..0) 9 #*.#'% )-  %. / @0$'# $. 9 J'.0$ .0#.K '$ J'$.'% .."K   '*0. /' '))#"* / #'- '. -   .0. -0#$ )$0 - $. 9 '.0$ .0#. 4.  -0#$  9$  %#' / .'0" ?0. 3)9'##"&  
                                                           24 Tailoring Rule, 74 FR, 55294-54295.  25 Chevron U.S.A. v. Natural Res. Def. Council, 467 U.S. 837, 843 (1984).
 
8
  3 712 ?0. /' / )* '0/" *'  $" '" )#$ ) '))#' 9 ' '@ * 9'#"  #' /'  "' '9 / $' 9 9#* / '))#' J #'# )' 9  .. 71'212 '$ 712  '))#" ' / S 8L #%#. -0#$ $ )#' -/ /. )%. )..# " ?0* 9'  ) '))#'. /' )* '0/. 0#$ ).. 0$ / / $'$#K 7   3#'#"  ' #'-90# '))#' 9 / 8# A  8L /./#$   .. 1'2 121!2 '$ 61@2 -0#$ #'./ -/  3 612 -// ).. '  # 9  /. '9 ' ) '))#' . 9#$ 9 )* '0/.  ..0  $" / ) J -0#$  9#'#" )..# 9 )* '0/.   /. .'0" ?0 9 / -#'$ '.. 9 B ).  7 ## .'$ ) '))#'. -0#$ 9' 0#"' $#'".  '* / ).    K
 ))#"* / 3 '$ 8# A *0#'" /./#$.   -0#$ '#.  '.0$  / .. /' / .?0. -0#$ 0$ *..'#  8/ 8'#* 0# )%$. .%'# =')#.&  
 8/ 3 )*' 1 3 72 . .0)).$  J.0 /'  *-/ -## 0K '#  ' ' .. -/ ).%' 9 #' ' .0. -% '0. 3 . ' ).0 ?0 J'.* )* '0/.I -#'$ 9 6  B ). -0#$ .%#" 0$ /. )0). 9 9'#'*  *-/    '/ "' '" /0.'$. 9 .0. -0#$ 9' 0# "' $#'".  %* / ). '$ '. ' .0# 9 '## )''# )0).. /" -0#$  9$  )#'  /#$ / )#'.  .0  $9"K  + 90$''##" '))#"* 3   -0#$ 0$ '  )0). 9 /    ) / >)$0% ')'"> 9 / G3 ))0#' 1 3 2  *.. $.*$ 3  '))#"  #'* $0.'# 9'#. J-// $0  / .: ' 9''##" '#  ' / .0.''# *0#'" .. ).$ " / 3 )%.. '$ -// '. ' *0) ' )'#" .).# 9 ... 9 / $#0.                                                            26 Tailoring Rule, 74 FR, 55308. 27 Tailoring Rule, 74 FR, 55310. 8 2 Tailoring Rule, 74 FR, 55308.
 
9
)##0'. /' 90# / 'I. 'K O?0* Alabama Power v. Costle  767 4$ ' 66P *.. -'$  =#0$ .'## . 9 3 *0#'      *.. $$ /0*/ 8# A  )%  )#' " )#*  ' .*# $0 '## 9 ' '@ .0;. *0#'" ?0. -% / %'. '@" 9 / 7 ##  .0. /' -0#$ /'%  '))#" 9 8# A ). /'%  =.*  ?0. )##* /  '))#" 9 )'* ). J-0#$  )% )#'K 6    $$ '))#"* 8# A   -0#$ 0$ )#' +'" .0. /' *.. $$ $ 9   *0#' -0#$   *0#'$ $0  / 0. '#*. .0#* 9 / '))#' 9 3 '$ 8# A  "'$ .0. *.. $$  $ 9   *0#' 6    .0 / . %#0 9 ) '))#'. -0#$ %#'$ '$ './ / )*'. #'#" *.. $$  $ 9 / 3 '$ 8# A )*'.  .#9 $.0    %-. .%'# 0 '..  -//  / 4$'# 8'$ .. '$ / 4$'# *" *0#' .. %$ >'$.'% ..">  . '.$ #' .'0" #'*0'* 6  '/ 9 /. '.. 0. @$ / '*.; ').  $)' 9 / .'0 !0 )#'$.  / >.0' - 9 . 0)$$>T / 0$.  -0#$ 0  '$.* 3 '$ 8# A 9  >/'%  )$  '. #'-> 66    8/ .  ?0. /' '))#"* /  )* )*'.   N / '0' .?0 9 .'#./* << .'$'$. 9 -  %/#. N -0#$ )$0 ' '.. 9 0)$$ '.0$" '$ '$.'% )..#" -%  ))" . '0$ /  9 / )#& Mass. v. EPA  
                                                           29 Tailoring Rule, 74 FR, 55308-09. 30 Tailoring Rule, 74 FR, 55311. 31 Tailoring Rule, 74 FR, 55311. 32 Tailoring Rule, 74 FR, 55312-55314. 33 Tailoring Rule, 74 FR, 55337, 55318.
10
  . #" & *.. $$  $  '))#" 3 '$ 8# A  .'## . $$  $ 9 /. )*'.  )#$ 0$ / - -*/ '$ $$  $ 9 3  .''* / " -% /. ' / ='# .?0. 9 ' $'* 9$* 9 */0. *'.. 0$  3  -//  0 . )-90# %$ /' *.. $$  $ 9   *0#' <<. 0$ /' )%.   .. #'$.  / .' #0. *..'# .0)) 9 *0#'" #' )#" . 9' .* $'" /'  -'.   '$  -/ *.. '$ '$ '$$  3  L % $'" / ).). 9 ')'$'$ #*.#' '$ 9 G3 '9' 9 ' #*'##"$* ..$0 '" '  $0 8/  /' *..     )##" '0/:$   )# #' )#. /'  *... /'% @$  $#$  ' . #0$0.   #"  /'. *.. '$ #*.#' $*   $0 << ... N / -'# 90# .'$'$ 1432 .'#./$ " / *" $)$ '$ 30"  132 -% /. . / =) /' )%. / 0# '$ /. '9 Mass v. EPA -'. $$$ / 43 '$'. / .'# 9 -'# 90#. -// 0. '/% .)9$ )'* $0.  << ... '.$  ' #9"# ''#".. )'$  )#0'.$ 90#. )'#" 3 3 1212 #'9. /' / 43 $.  .'#./ )$ 9 '" '$$'# *0#' 9   / */0. *'.. 0$ /  )%..&  
/*  /. .0.  *0#'. ..0$ )0.0'  /. .0. ./'## '99   .0$  '99 / *0#'" .'0. 9 ' $=$  '" / */0. *'. 9 )0).. 9 / )%.. 1#0$* . 7 O / 3 )*'P 9 /.  O / #'  P
  / 8'#* 0#  -. '. 9 *.. -/  '$  '$$ /      ./- .$ '#0. $  / *0#'" ?0%'# 9 ' )0 %0.   / = 9 / .'0 8/. .#9$.0 )*' - '  .0)). -'. #0*  / '## /.  8/ '## 9 ' .0$$ / $' 0* ' '% '$ - /  . ** /'"- -* ' .. )0).. -/ .#9 .0%* *..'#  '$ )#*
11
 / 'I.  900 8/9  0. .)  )#'" #'-' '$ '$ /  $ 9 '"$" '  '##" #%. /' ;% * ' $* ;$ #  .## /
5/ ' 0 $. #'$.  '.0$ .0#. '$ '$.'% )''#".. / ' #" - )..#. / 12 '.0$" '$ '$.'% )..#" - $$$  / .'0 9 / ** '$ / 0 @0. 0*/ / .'0;. 9#'-.  #*/  12 / 0 '09'0$ / :' '#90* 9 / .'0 " .'$* 
8/ )$* 3S8# A *0#'" */' . #" ' )$0 9 / Massachusetts  0I. '*$'$% $. 8/  ..0  Mass. v. EPA  -// / 0 % '$$..$ . -// *.. -/  '$ '$ '$$  3    '$  $$ 9   '))#" /  as a whole  #0$* 3 '$ 8# A '$ / 3 )*'   9 *#'# -'* )0).. 8 '. /. ?0. .  '.- 
8 @0.9" / $* 0#  ?0. C0$* ,'$ '$;. 9'0. @0 >  ' ' 9.. 0 9 / $'"> 6B -/ )* ' .'0 !0 /' . -/' / 0 '@" $$  Mass. v. EPA  + ).#" / '@" '$ ' 9.. 0 9 / - bowdlerized version 9 /  $9 9 >' )##0'>  8 '/ / #0. /'  . ' >' )##0'> 9 *0#'" )0).. / 0 '@" /'$  -//#$ Chevron $9 9 .)$ ;. '.'# '$* 9  3 61*2  '*0$ /' $ .0.'. ' >' )##0'.> #" 9 /" ' >' )##0 '*.> 8/ '@" 9##-* ). /#$ /' '"/* $ ) . . ' >' )##0'> 8/. -'.  9' / #"/) 9 ).; '*0 '$ / '@";. #0. %0.#" 9 anything >$ > / ' ' . ). 9' ' >' )##0'> / <<. ' -/ U. *0#'" '/ !0  '99 /. #0. / '@" /'$  '$ 3 61*2 .#%#"   ' 9' . / )%. . #" - .. #*   .  90##&  8/  >' )##0'> '. '" ' )##0 '*  ' 9 .0/ '*. #0$* '" )/".'# /'# #*'#  '$'% 1#0$* .0 ''#                                                            34 Tailoring Rule, 74 FR 55306.