EPA intends to rescind the 'risk finding' that supports regulatory measures for the power and automotive sectors regarding climate change.
The United States Environmental Protection Agency (EPA) has proposed to revoke its 2009 "endangerment finding" for greenhouse gas emissions, a move that could significantly reshape the landscape of climate regulation in the country. This decision, if finalized, would remove the legal foundation for regulating greenhouse gases under the Clean Air Act, potentially eliminating limits on emissions from vehicles, power plants, factories, and other sources.
The endangerment finding, mandated by the Supreme Court ruling in Massachusetts v. EPA (2007), requires the EPA to regulate greenhouse gases if they are found to endanger public health or welfare. The proposed revocation departs from extensive scientific assessments and could face significant legal challenges from environmental groups, states, and others defending climate regulations.
The potential impact of this decision is far-reaching. Without the endangerment finding, the EPA would lack legal authority to enforce vehicle emissions standards, power plant limits, and other climate-related pollution controls. This could lead to increased greenhouse gas emissions, undermining climate change mitigation efforts and potentially impacting public health and environmental quality.
The administration argues that the repeal will save the economy over a trillion dollars by removing regulations they view as burdensome and based on exaggerated science. However, some greenhouse gas regulations, especially those not directly linked to the endangerment finding, might remain, but the overall regulatory framework would be substantially weakened.
The rollback could set precedents affecting the EPA's approach to science-based regulation and future climate rulemakings. If the U.S. Supreme Court agrees to consider an appeal of the lower court's decision, the high court could issue a ruling in June 2028, according to Capstone.
The EPA's proposal could affect electric vehicle sales, as the historically stringent Biden era emissions standards would be undone. The Department of Energy will also accept comments on its greenhouse gas report after a notice is published in the Federal Register.
The EPA's proposal aims to rescind the endangerment finding and all resulting GHG emission standards for vehicles and engines from model years 2012 to 2027 and beyond. Comments on the EPA proposal are due by Sept. 21, according to the agency's proposed rule.
The EPA's proposal to revoke the endangerment finding for greenhouse gas emissions could reduce compliance costs for independent power producers and utilities with significant gas- and coal-fired power plant fleets, according to Capstone. However, the proposed revocation will create confusion and uncertainty and upend years of significant and costly planning to be in compliance with the regulatory framework.
The EPA's proposal to rescind its finding on greenhouse gas emissions threatens public health and will face significant legal pushback. The ten warmest years on record have all occurred in the last decade, underscoring the urgency of addressing climate change. The EPA stated that GHG emission standards harm public health and welfare by increasing prices, decreasing consumer choice, and slowing the replacement of older vehicles.
In conclusion, the EPA's proposed revocation of the endangerment finding threatens to dismantle the legal basis for federal greenhouse gas regulation, risking increased emissions and legal battles that will test the EPA’s authority to respond to climate change. As the federal government takes a step back on climate action, emissions levels in jurisdictions with carbon pricing programs will likely rise, creating higher demand for compliance credits and providing moderate tailwinds behind prices. The future of this proposal remains uncertain, with legal challenges expected in the coming years.
- The EPA's proposal to rescind the endangerment finding for greenhouse gas emissions could lead to decreased regulations on industries such as automotive, transportation, and energy, impacting vehicle emissions standards, power plant limits, and other climate-related pollution controls.
- The revocation of the endangerment finding may face legal challenges from environmental groups, states, and others, as it departs from extensive scientific assessments and contradicts the Supreme Court ruling in Massachusetts v. EPA (2007).
- The impact of this decision could extend to various sectors, including finance, real-estate, and business, as increased greenhouse gas emissions could undermine climate change mitigation efforts and potentially affect public health and environmental quality.
- The administration's argument for repealing regulations is based on economic savings, claiming that the removal of regulations would save the economy over a trillion dollars.
- The Department of Energy will accept comments on its greenhouse gas report after a notice is published in the Federal Register, offering an opportunity for the general public to voice their opinions on the proposed revocation.
- The EPA's proposal could potentially affect industries like independent power producers and utilities with significant gas- and coal-fired power plant fleets, as it aims to rescind GHG emission standards across multiple years.
- The reversal of the endangerment finding threatens the EPA's approach to science-based regulation, and if upheld, could create confusion and uncertainty in the policy-and-legislation landscape, potentially setting precedents for future climate rulemakings.
