EPA Seeks to Expand Clean Air Act's Reach

Businesses of all kinds (EPA) would face additional burdens and costs under a proposed EPA rule to expand the Clean Air Act, according to an analysis released by the U.S. Chamber of Commerce on September 16.

The 600-page proposed rule for greenhouse gas emissions would require Prevention of Significant Deterioration (PSD) permits for commercial, industrial, and agricultural sector buildings. In addition, manufacturers would have to significantly alter the design, size, and performance of boats, trucks, and motorcycles.

Currently, the EPA issues about 300 PSD permits per year. Under the proposed rule, 1.2 million companies would come under the Clean Air Act umbrella, and thousands of new permits would be required.

"It's not just the large manufacturers that would bear the burden of regulation this time," says William Kovacs, Chamber vice president of Environment, Technology, and Regulatory Affairs. "It's the little guys: the hotel you stayed at this weekend, the bakery where you bought your donuts, the office building you work in, even the church you take your family to on Sunday." Kovacs testified on the EPA regulating green house gases before a Senate committee on September 23.

PSD permits are costly, take months or even years to complete, and can require the business owner to install new, emissions-limiting control technologies. PSD could ultimately deter or significantly delay new construction.

"Basically this is a shadow tax on businesses and a disincentive to do business in America," says Mark Mills, author of the newly released report, A Regulatory Burden: The Compliance Dimension of Regulating CO2 as a Pollutant.

The EPA acknowledges that the Clean Air Act is not the appropriate mechanism for regulating greenhouse gases. However, its staff has pledged to continue down this path until and unless Congress steps in. The Chamber is urging Congress to pass legislation prohibiting the EPA from regulating greenhouse gases under the Clean Air Act.

Read the full report.

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