Hickenlooper: Suspending EPA’s new ozone standard ‘would be a great idea’

April 1, 2016 by michael · Comments Off
Filed under: CDPHE, Environmental Protection Agency, Hydraulic Fracturing 

Transcript of Gov. John Hickenlooper’s comments on the Environmental Protection Agency’s ozone rule delivered to the Colorado Petroleum Council and the American Petroleum Institute on March 31, 2016 via the Center for Regulatory Solutions:

So I think it would be a great idea if they suspended the standard. I mean, just with the background [ozone], if you’re not going to be able to conform to a standard like this, you are leaving the risk or the possibility that there will be penalties of one sort or another that come from your lack of compliance. Obviously, no different than any business, states want to have as much predictability as possible, and I think if they suspend the standards, it’s not going to slow us down from continuing to try and make our air cleaner. …

You know, we’re a mile high. Air quality issues affect us more directly than they do at lower elevations. So we’re going to keep pushing it, we’re not going to back off, we’re going to continue to improve the air quality in the state every year if I have anything to say about it, but at the same time, those standards, you know, to be punitive when you’re working as hard as you can … to get cleaner air as rapidly as you can, it seems like it’s not the most constructive stance.

Two Colorado Senators, one Democrat and one Republican, had this to say about the ozone rule’s impact on the state:

State Senator Cheri Jahn (D-Wheat Ridge):

“This whole situation is a mess. EPA officials did an abysmal job with the prior standard of 75 ppb, set in 2008. Instead of working with states to implement those ozone rules, they have been obsessed with changing the rules until they are completely unworkable.

“Even the EPA admits the new standard of 70 ppb is practically impossible for Denver to meet, because of background ozone that we can’t control. Now we are facing long-term violation of the new standard, which will impose all kinds of new controls and restrictions on the economy, small businesses and investments in transportation infrastructure. EPA officials have claimed they will develop a fix for the background ozone issue, but they should have worked all that out before setting the new standard in the first place.

“If the EPA cares about protecting the health of Colorado families, it will suspend the enforcement of the new 70 ppb standard until there is a real solution to the threat from background ozone. We need solutions based on increased analysis and better science. Anything less than that will be setting Colorado up to fail.”

State Senator Jerry Sonnenberg (R-Sterling):

“I have always opposed the EPA’s strict new ozone standard because of the control it will give federal bureaucrats over basic planning decisions here in Colorado. The new limit of 70 parts per billion is completely unrealistic. It will penalize our state for background levels of ozone that come from outside Colorado and from natural sources like wildfires. Even the EPA admits Front Range communities have no hope of reaching the new standard by 2025 because of background ozone.

“Yet again the EPA has gone too far, imposing pointless and job-killing federal mandates on states and local governments. If the EPA ties down the Colorado economy with even more red tape, small businesses, family farms, working families and seniors on fixed incomes will be hit the hardest. Therefore, I am calling on the EPA to immediately halt the implementation of this punitive ozone rule, and leave in place the prior standard of 75 parts per billion.”

The CRS report noted the development surrounding the ozone rule since the 70 ppb target was adopted in 2015 (links in original):

In late February, at an EPA workshop in Phoenix, Ariz., the agency faced stiff opposition from state air regulators and business leaders – especially those from Western states. In the face of this criticism, the EPA admitted the Intermountain West is the “most problematic” region for addressing background ozone, and states like Colorado have “a very complicated puzzle to untangle” if they hope to stay out of violation with the new 70 ppb ozone standard. More recently, The Denver Post editorial board has warned background ozone will make compliance in Colorado “particularly difficult” and rebuked the environmental activists who “blithely pushed for a far stricter standard.” In addition, an air quality researcher at Denver University predicted the Front Range will never comply with the 70 ppb standard, and the Grand Junction Daily Sentinel’s editorial board called for the EPA to stand down until the agency can guarantee “communities won’t be unfairly blamed for pollution they didn’t cause.”

As CRS showed last year, in a report called “Slamming the Brakes: How Washington’s Ozone Plan Will Hurt the Colorado Economy and Make Traffic Worse,” the stringent new standard threatens to impose damaging regulatory restrictions across most of Colorado’s economy. The report also detailed a bipartisan wave of opposition to the EPA’s ozone agenda in Colorado, especially because of the EPA’s failure to account for high levels of background ozone, which make the new standard extremely difficult – if not impossible – to meet.

Independence Institute energy policy analyst Simon Lomax notes that the rhetoric surrounding the ozone rule, and in particular, its potential impact on public health, is filled with fearmongering from the “bad-air chorus.”

Lomax testified before CDPHE last month on the ozone rule:

The nature of the problem is clear. The EPA’s new ozone standard goes too far. It will throw large areas of the state into long-term violation of federal law. Violation will impose new restrictions on economic growth and jeopardize badly needed investments in transportation infrastructure.

And because the stringent new standard approaches background ozone levels, which state regulators are powerless to control, there will be little, if any, environmental benefit in return. For months, stakeholders from across government, across the political spectrum and across the economy have stated and restated the problem. But admiring the complexity of the problem won’t solve it.

Independence Institute analyst calls for action on EPA ozone caps

March 17, 2016 by michael · Comments Off
Filed under: Environmental Protection Agency, Legal, regulations 

Today, Independence Institute associate energy policy analyst Simon Lomax testified at an ozone hearing of the Colorado Department of Public Health and Environment.

For audio, click here.

Remarks as prepared for delivery:

Good morning. My name is Simon Lomax. I am here today representing the Independence Institute, a Denver think-tank that advocates for limited government. I hold an adjunct position at the institute, where I serve as an associate energy policy analyst.

I know the discussions today have been focused on meeting the 2008 ozone standard of 75 parts per billion. But the elephant in the room is the EPA’s new and much more stringent standard of 70 parts per billion, which was announced in October of last year.

Just yesterday, State Senator Cheri Jahn, a Democrat from Wheat Ridge, and State Senator Jerry Sonnenberg, a Republican from Sterling, called on the EPA to halt the implementation of the new ozone standard. In the words of Senator Jahn, the EPA is setting Colorado up to fail.

During last year’s debate over the standard, a large and diverse coalition opposed the EPA’s move to tighten the ozone standard when implementation of the 2008 benchmark had hardly begun. The opposition was led by state and local officials, business groups, the construction industry, and even some state regulators.

Here in Colorado, the CDPHE itself expressed concerns about the standard being set close to background levels of ozone which are completely beyond the control of state regulators. Background ozone comes from outside the state, and even outside the country, and also from natural sources like wildfires.

Late last year, the EPA admitted that 10 years from now, the Denver metropolitan area will be stuck in violation of the 70 ppb standard because of background ozone. It’s such a big problem the EPA convened a special workshop in Phoenix, Ariz., last month to face the music from state regulators, including some officials from Colorado.

Most of those discussions were held behind closed doors, but the little that was discussed in public was deeply troubling. The EPA admitted Western states are the most problematic for background ozone, and a NOAA scientist said we do not have the ability to measure in real time how much ozone is coming into the Western U.S. from countries like Mexico and China.

An air quality regulator from Arizona explained the dilemma: Even though industry is a very small portion of the sources of ozone, those sources will take a hit because they are the only ones that state regulators can target.

In other words, the EPA has created such a stringent ozone cap that communities across Colorado and the Western U.S. will be punished for air pollution they didn’t cause. Long-term violation of the federal ozone standard triggers the state implementation plan process, which as you know, gives the EPA veto authority over state and local regulations that deal with ozone-forming emissions.

We are talking about cars, trucks, factories, construction projects and even investments in new and upgraded roads.

A leading emissions researcher at Denver University has warned it’s practically impossible for communities along the Front Range to ever reach the 70 parts per billion ozone standard. This means EPA intervention into our economy and into our communities could be indefinite.

The nature of the problem is clear. The EPA’s new ozone standard goes too far. It will throw large areas of the state into long-term violation of federal law. Violation will impose new restrictions on economic growth and jeopardize badly needed investments in transportation infrastructure.

And because the stringent new standard approaches background ozone levels, which state regulators are powerless to control, there will be little, if any, environmental benefit in return. For months, stakeholders from across government, across the political spectrum and across the economy have stated and restated the problem. But admiring the complexity of the problem won’t solve it.

It will take action to avoid the worst impacts of the EPA’s ozone plan in Colorado. And it’s time to find out what elected officials and environmental regulators are actually going to do about it.

Thank you for hearing me out. I wish you the best of luck with the work you have ahead of you.

The Denver Business Journal’s Cathy Proctor was also there.

August 13 Colorado Energy Roundup: EPA dumps on Colorado with Clean Power Plan, Ozone rule–then releases a toxic mess!

August 13, 2015 by michael · Comments Off
Filed under: CDPHE, Environmental Protection Agency, Legal, Legislation, PUC 

To say the Environmental Protection Agency has been in the news lately would be an understatement. Just this time last week, less than 24 hours after triggering a spill of toxic sludge including heavy metals into the Animas River in SW Colorado, most folks were unaware of the situation due to a lack of EPA communication–but more on that in a minute.

They were too busy focused on the new carbon-cutting Clean Power Plan rules being dumped on the state by the regulatory side of the agency.

Here’s a recap of the CPP, as Independence Institute’s Mike Krause can explain:

Or more in depth from former Colorado Public Utilities Commission chair, Ray Gifford:

Last week the EPA finalized the rule, as we told you in last week’s edition of the Energy Roundup, with the Colorado Attorney General Cynthia Coffman considering joining a multi-state lawsuit challenging the CPP’s legality, and legislators possibly returning to some form of transparency or oversight for the CPP state implementation plan, now with pushed back deadlines (and therefore more sessions to seek legislation).

The Independence Institute has a CPP backgrounder that provides further details.

EPA Administrator Gina McCarthy discussed the launch of the CPP in a video on Tuesday.

***

Hot on the heels of the CPP, the EPA expects to finalize rules for ground-level ozone some time in October. But large and small businesses alike, from the National Association of Manufacturers to Colorado Association of Commerce and Industry, joined the Center for Regulatory Solutions (CRS), a project of the Small Business Entrepreneurship Council (SBE Council), in a press call yesterday to announce a new study that looked at the effects of the ozone rule on Colorado. The sheer volume of bipartisan commentary opposing the proposed ozone reduction is particularly eye-opening in these normally contentious times, and shows a break with the EPA on new regulations–the ozone rule might be a step too far following so closely behind the CPP:

“This ozone proposal gives the federal government far too much control over state and local planning decisions that shape the Colorado economy,” said Karen Kerrigan, President of the Small Business and Entrepreneurship Council. “Colorado is one of the biggest success stories of the federal Clean Air Act, but now the EPA is moving the goalposts. The standard is so strict – approaching background levels in some areas – that the vast majority of the state economy will be found in violation immediately. Violation of the ozone standard gives EPA the authority to effectively rewrite state and local environmental laws the way Washington wants.”

“No wonder this EPA proposal has been met with such strong and diverse opposition from across Colorado’s political spectrum. Washington officials, all the way up to President Obama himself, should listen to the voices coming from Colorado and across the country and once again give the current standard a chance to work.”

A sample of the key findings:

By lowering the National Ambient Air Quality Standard from 75 parts per billion (ppb) into the 65 to 70 ppb range, EPA would force, with a single action, at least 15 counties in Colorado to be in violation of federal law. These happen to be some of Colorado’s most populated counties, concentrated in the Denver metropolitan area, but a number of counties on the Western Slope may be dragged into non-attainment as well. Together, these 15 counties are responsible for 89 percent of Colorado’s economy and 85 percent of state employment. (Page 3)

Under the Clean Air Act, cities and counties that do not meet the NAAQS for ozone are placed into “non-attainment,” or violation of federal environmental standards. Once in non-attainment, local and state officials must answer to the federal government for permitting and planning decisions that could impact ozone levels. State officials are required to develop an “implementation plan” that imposes new restrictions across the economy, especially the transportation, construction and energy industries. The EPA has veto power over these implementation plans. States that refuse to comply, or have their implementation plans rejected, face regulatory and financial sanctions imposed on them directly from the federal government. (Page 19)

The report, entitled “Slamming the Brakes: How Washington’s Ozone Plan Will Hurt the Colorado Economy and Make Traffic Worse” has revealed that opposition to the ozone rule with a river of comments from Colorado state and local officials.

Here’s a sample of the bipartisan criticism:

State Senator Cheri Jahn (D):

“Coloradans care deeply about the environment. After the great progress we have made on air quality, our state should be praised, not punished. This ozone proposal out of Washington, D.C. scares my constituents, because it could hamstring our regional economy and cost jobs.

We have worked so hard to bring manufacturing jobs to Colorado, and by moving the goal posts on ozone, the EPA is going to chase manufacturing jobs away from our state. This plan could also gum up the approval process for badly needed road and transportation investments, which will make our traffic worse, and make it much harder to attract new industries, grow existing businesses, and strengthen Colorado’s middle class.”

State Senator Ellen Roberts (R):

“If the EPA carries out this ozone plan, Western Colorado will be placed at a terrible economic disadvantage. We have worked hard to responsibly care for our environment even as we grow and diversify our economy.

Tightening the ozone standard any further just does not make sense when the existing standard, which is less than 10 years old, is working. I urge the EPA to reconsider this plan and leave the 2008 standard in place.”

State Senator Jerry Sonnenberg (R):

“The EPA’s proposed new standards would drive small family farms such as mine out of business. We have never been able to afford new equipment and if the only way to comply with this new standard is with new equipment, my family would have to leave agriculture. Even if we could meet the standards with expensive upgrades to our machinery, the increased costs to finance those upgrades, as well as the fuel and the fertilizer, takes a marginally profitable farm and turns it into one that can’t make its payments.

Unless you want to see the family farm only as a memory, one must make the EPA understand that their new standards will have a devastating effect on rural America and the agriculture economy.”

Routt County Commissioners Douglas Monger (D), Cari Hermacinski (R), Timothy Corrigan (D):

“We set and meet high standards because we know it is good for our people and our state. So you might expect us to support the Environmental Protection Agency’s proposed standards for ground-level ozone. Those standards, however, are too overbearing and are meeting with a lot of resistance even in places where air quality regulations are welcome…

These standards must not be implemented. If they go forward as proposed, they will do more than put good people out of work and cause hardships for communities that have done so much to protect the land, air and water around them. They will turn away a lot of people who have been receptive to the idea that government can be trusted to do environmental regulation the right way.”

NAM also released a video ad buy, to be seen across Colorado over the next few days:


***

Only the sheer quantity of toxic material–some 3 million or so gallons of Sunny-D colored water laden with heavy metals–comes close to the media coverage of one of the biggest environmental stories in recent Colorado history.

Most of the stories have been widely publicized and shared, so here is a quick look at this EPA-related (not strictly energy-related) blockbuster news blitz from just the past two days alone, in reverse chronological order (most recent first):

EPA Contractor Behind CO Mine Spill Got $381 Million From Taxpayers:

The EPA is not letting the public know the names of the government contractors responsible for spilling three million gallons of toxic wastewater from a southern Colorado mine. The agency is holding the information close — so close, the Colorado attorney general’s office doesn’t have it.

A spokesman with the Colorado attorney general’s office told The Daily Caller News Foundation the EPA had not disclosed the names of the federal contractor that caused millions of gallons of wastewater into the Animas River — leaked contaminants include zinc, copper, cadmium, iron, lead and aluminum.

EPA Withholding Mine Spill Info From State AGs:

The EPA is not letting the public know the names of the government contractors responsible for spilling three million gallons of toxic wastewater from a southern Colorado mine. The agency is holding the information close — so close, the Colorado attorney general’s office doesn’t have it.

A spokesman with the Colorado attorney general’s office told The Daily Caller News Foundation the EPA had not disclosed the names of the federal contractor that caused millions of gallons of wastewater into the Animas River — leaked contaminants include zinc, copper, cadmium, iron, lead and aluminum.

Animas River outfitters shut as plume passes, but say they’ll endure:

“Very difficult,” said Alex Mickel, who has turned hundreds of customers away from his Mild to Wild Rafting each day since the Environmental Protection Agency accidentally unleashed a 3 million gallon torrent of toxic mine water into the headwaters of the Animas last week.

“We are anticipating around $150,000 to $200,000 in lost revenue,” Mickel said. “But from an emotional standpoint, it’s difficult to see a beautiful river damaged in this way.”

Animas River spill leaves Colorado, neighbors weighing EPA lawsuit:

The attorneys general of Colorado, New Mexico and Utah said Wednesday that a lawsuit against the Environmental Protection Agency is an option in the wake of a massive mine wastewater spill caused by the agency.

All three, however, agreed that it’s too early to say if they will sue.

“I would hope that it would not be necessary,” Colorado’s Cynthia Coffman, a Republican, said of a suit in an interview with The Denver Post. “The statements by the (EPA’s administrator) indicate the EPA is accepting responsibility for the accident. The question is: What does that mean? What does accepting responsibility mean?”

Hickenlooper drinks Animas River water to make a point:

Gov. John Hickenlooper on Tuesday drank a hearty gulp of the Animas River in an effort to highlight that the river has returned to pre-contamination conditions.

The governor and his health department director, however, cautioned that citizens should not be freely drinking from the river, because the water was unsafe for consumption even before the Environmental Protection Agency released an estimated 3 million gallons of mining wastewater into it.

But the drinking exercise indicated that state officials are more than confident that the river does not pose a toxic risk to humans, as they publicly stated on Tuesday.

“Am I willing to go out there and demonstrate that we’re back to normal?” Hickenlooper asked out loud after The Durango Herald raised the idea with the governor. “Certainly. I’m happy to do that. I’m dead serious.”

Navajos Distrustful OF EPA Promises On Toxic Mine Spill:

Navajo Nation is furious with the EPA, not just because the agency accidentally spilled three million gallons of toxic mine waste in the region, but because the agency is allegedly trying to get tribal members to waive rights to future compensation for damages incurred by the toxic spill.

“The federal government is asking our people to waive their future rights because they know without the waiver they will be paying millions to our people,” Navajo President Russell Begaye told Indianz.com. “This is simple; the feds are protecting themselves at the expense of the Navajo people and it is outrageous.”

Congressmen: EPA Must Answer For Spilling Toxic Waste:

Republican congressmen are calling for the EPA to be held accountable for spilling 3 million gallons of toxic mine wastewater into the Animas River last week, especially since the agency is a government entity and won’t be punished to the same degree a private company would for spilling waste.

“The EPA must be held accountable for its actions,” Rep. Lamar Smith told The Daily Caller News Foundation in an emailed statement. “If a private company caused such a disaster, it would be hit with substantial penalties and would be required to pay for cleanup.”

“In this case, it will be the taxpayers who foot the bill,” the Texas Republican said. “The EPA has an obligation to the families and businesses that have been devastated by this spill.”

Screen Shot 2015-08-12 at 9.51.55 PM

From the Denver Post house editorial:

The U.S. Environmental Protection Agency’s clumsy, tone-deaf response to the toxic disaster on the Animas River was an embarrassment even to the EPA. One agency official managed to admit the reaction was “cavalier,” but that’s putting a mild face on it.

Top EPA official takes responsibility for Colorado mine spill:

EPA Administrator Gina McCarthy said Tuesday in Washington, D.C., that she takes full responsibility for the spill, which she said “pains me to no end.” She said the agency is working around the clock to assess the environmental impact.

Hickenlooper sees a silver lining:

“Colorado’s governor thinks a mine spill accidentally triggered by an EPA crew will move the state and federal government to more aggressively tackle the “legacy of pollution” left by mining in the West.

Gov. John Hickenlooper said Tuesday that much of the wastewater has been plugged up, but the state and the Environmental Protection Agency need to speed up work to identify the most dangerous areas and clean them up.

The former geologist says that if there’s a “silver lining” to the disaster, it will be a new relationship between the state and the EPA to solve the problem.”

Navajo Nation Mourning, Pleading for Help After Toxic Mine Spill Contaminates Rivers

John Hickenlooper calls Animas River disaster “unacceptable”:

Gov. John Hickenlooper on Tuesday stood on the banks of the Animas River and said last week’s spill of 3 million gallons of contaminated mining waste water into its flow was “in every sense, unacceptable.”

He said the long-term effects of the spill, which happened as the Environmental Protection Agency was investigating the contaminated mine, are unknown.

The governor said he has spoken with the head of the EPA, Gina McCarthy, and described her as “committed” and “firm” in her resolve to respond to the spill. McCarthy will be in Durango and New Mexico on Wednesday, she said Tuesday on Twitter.

“I think we share the anger that something like this could happen,” Hickenlooper said. “But I think that said, our primary role is now: that’s behind us and how are we going to move forward.”

EPA Shrugs after Spilling Millions of Gallons of Toxic Water into a River in the Mountain States

EPA Chief Apologizes as Anger Mounts:

Environmental Protection Agency Administrator Gina McCarthy apologized Tuesday for a mine spill in Colorado that her agency caused last week and planned to travel to the area Wednesday, amid increasing criticism from lawmakers about the EPA’s response.

Ms. McCarthy said at a news conference in Washington that she was still learning about what happened, responding to a question about whether the EPA was reviewing changes in how it cleans up old mines. “I don’t have a complete understanding of anything that went on in there,” she said. “If there is something that went wrong, we want to make sure it never goes wrong again.”

EPA won’t face fines for polluting rivers with orange muck:

Unlike BP, which was fined $5.5 billion for the 2010 Deepwater Horizon disaster, the EPA will pay nothing in fines for unleashing the Animas River spill.

“Sovereign immunity. The government doesn’t fine itself,” said Thomas L. Sansonetti, former assistant attorney general for the Justice Department’s division of environment and natural resources.

And of course, some folks don’t think the EPA should be blamed . . .