Barring the trickery of a lame duck conference committee, cap-and-trade is dead in the 111th Congress. Some blame President Obama for not taking a more hands-on role. Others blame environmental groups for waging a $100 million lobbying campaign without winning a single GOP convert to the Kerry-Lieberman bill. Others blame the allegedly “well-funded denial machine,” even though proponents, who include major corporations like BP as well as Big Green, must have outspent free-market and conservative advocacy groups by more than 100 to 1.
The August 11 edition of Climatewire (subscription required) featured interviews with Exelon Corp. VP Betsy Moler and Resources for the Future President Phil Sharp, who lament that Republican lawmakers, the “inventors” of “market-based” environmental policy, turned against their own “invention.” Moler and Sharp are trying to spin GOP opposition to cap-and-trade as self-contradictory, hence as unstable, hence as reversible. …
This post is Part 2 of my examination of EPA’s Tailoring Rule — the Agency’s attempt to amend the Clean Air Act’s (CAA) Prevention of Significant Deterioration (PSD) pre-construction permitting program and Title V operating permits program so that they can be applied to carbon dioxide (CO2) and other greenhouse gases (GHGs) without spawning an economically-chilling administrative morass. Yesterday’s post argued that the Supreme Court’s decision in Massachusetts v. EPA set the stage for an administrative disaster that EPA rightly describes as “unprecedented” and “absurd.” Today’s post examines the adequacy of the Tailoring Rule as a regulatory relief measure, finds it woefully inadequate, and advises EPA not to oppose legislative action to protect the economy from Mass. v. EPA‘s regulatory fallout.
V. Tailoring Rule: Small Business Protection Is Temporary, Dubious, and Incomplete
Industry is unlikely to challenge the Tailoring Rule, since it aims to shield substantial numbers of small entities from PSD and Title V regulation of CO2 for a period of six years.…
