GCC Legislative Update 2/19/10

GHG Regulation Local Meetings
As part of effort to stop EPA from regulating GHG for stationary sources (more below), ACC has requested that we coordinate some visits with local congressional district directors of Congressmen John Barrow (Augusta), Jim Marshall (Macon), David Scott (Smyrna) and Samford Bishop (Columbus).  Right now, we only have a date for the meeting in Rep. Barrow’s Augusta office (925 Laney Walker Blvd).  It is scheduled for March 3 at 9 AM.  Augusta members---please let me know if you want to attend.

Legislative Session Hits the Pause Button
This week both chambers passed different versions of the FY2010 Supplemental Budget.  This is a normal procedure.  In addition to developing the “big” budget for the upcoming year, the legislature always makes adjustments to the present year’s budget.  This annual adjustment is necessary to adjust expenditures according to the level of actual revenues that are being received.  To make that correction this year, almost a billion dollars needed to be cut. To complicate the matters, the January revenue numbers reported an 8% decline, which means the budgets that were passed this week are now deficit budgets.  In order to work through this problem of continuing revenue decline, the General Assembly decided to take a two week break.  First, so they could get a report on the February numbers, and second, so they could look for tweaks in the law to find more revenues.  The latter point is an issue of concern.  We will need to closely monitor this tweaking to make sure it is not an increased fee/tax, new fee/tax or the elimination of a tax exemption or credit that we receive.  Keep in mind, the legislature is still dealing with the ’10 budget.  The “big” budget FY 2011 has not been acted upon.

One of GCC priority items is to get funding for the new Voluntary Remediation Program (VRP) that we help create last year.  We had $150,000 in the House version of the supplemental bill, but the Senate took it and another $1 million from EPD, so our efforts to get the funding will continue.

VRP amendments
As with any new program, the newly created VRP needs a couple of changes to make it the program that we envisioned.  GA EPD delayed implementation of the program for over six months.  When they did finally opened the program, they made the application process so complicated it almost renders the VRP useless.  GCC is working on a couple of changes to the program that should fix these issues as well as establish a stable funding mechanism for the program.  We expect our changes will become a substitute bill for SB 78, which was one of the VRP bills from last session that we did not need.

Water Conservation Love Fest Continues
Both the House and Senate Natural Resource Committees adopted their respective versions of the Governor’s water bill— Georgia Water Stewardship Act of 2010 (HB 1094 and SB 370)—with only minor amendments.  We have reviewed the bills and do not believe the measures will have much impact on industrial users.  If you want to review the bills that were adopted by the two committees, click the bill numbers above.

New GCC Resolution introduced in the House

Representative Ron Stephens (R-164) introduced HR 1357 that urges Congress to enact legislation restricting EPA’s efforts to regulate green house gas emission from stationary sources through the Clean Air Act until Congress adopts a balanced approach.  This is a companion resolution for SBR 958 introduced last week in the Senate by Senator Chip Pearson. Both measures are in coordination with ACC’s aggressive campaign in 22 targeted states to encourage Congress to take action to stop EPA.  ACC strongly believes that EPA should not regulate greenhouse gas emissions from stationary sources using existing Clean Air Act authority unless and until Congress has had an opportunity to consider how best to address climate change without crippling the economy.  (See more about the ACC campaign below.)

Congratulations to Senator Hardie Davis (D - Augusta)
This week, State Rep. Hardie Davis (D - Augusta) won a special election runoff for Senate District 22, the seat formerly occupied by Ed Tarver. Tarver left last year to become the new U.S. attorney for the Southern District of Georgia. Davis defeated challenger Harold V. Jones with 55.4% of the vote. Hardie is a strong supporter of GCC issues, and we are happy to see him in the Senate.

ACC Launches Effort to Postpone EPA GHG Regulation

On Feb. 17, 2010, American Chemistry Council (ACC) President Cal Dooley announced a new advocacy campaign directed at convincing Congress to postpone EPA efforts to adopt new greenhouse gas (GHG) emissions limitations for mobile sources.

In the next few weeks EPA is expected to promulgate new rules that impose greenhouse gas emission limits on certain mobile sources (new automobiles and light duty trucks). If EPA adopts this new rule as expected, it will automatically trigger regulation of greenhouse gas emissions at stationary sources – as many as six million stationary sources around the country, including many manufacturing sites. This move could stop or delay the creation of thousands of high-paying jobs in multiple industry sectors, halt construction of new plants as well as upgrades or expansions at existing plants, and hinder energy efficiency investments.

The ACC has taken the lead to launch a coalition asking for congressional (or administrative) postponement of GHG regulation of stationary sources, in order to give Congress time to act on comprehensive energy and climate policy.

The “Coalition for American Jobs” began running broadcast and cable ads in eight key states on Feb. 17. These states were chose because the Coalition believes it can have the most impact in those key states. The ads will run on cable and some network broadcasts in select locations in Arkansas, New Mexico, West Virginia, North Dakota, South Dakota, Ohio, Michigan and Virginia. The Coalition also plans to launch print advertising in “inside-the-beltway” publications over the next few weeks.

Link to view broadcast video.

The ACC is taking the lead on this effort and is commended for doing so. However, the impact of EPA’s proposed GHG rulemaking action will be felt far beyond the mobile source and chemical industry sectors. Virtually every manufacturer that operates even a modest-sized boiler will be negatively impacted by this action.

GCC members are encouraged to contact their respective members of Congress and Senators Isakson and Chambliss and ask that they direct EPA to postpone action on its proposed GHG rule and give Congress time to take action on a comprehensive energy and climate policy.