H. C. R. No. 9 As Reported by the House Agriculture and Natural Resources Committee

As Reported by the House Agriculture and Natural Resources Committee

129th General Assembly

Regular Session

2011-2012

H. C. R. No. 9

Representative Thompson

Cosponsors: Representatives Landis, Carey, Blessing, Adams, J., Slaby, Young, Grossman, Combs, Stebelton, Brenner, Huffman

A CONCURRENT RESOLUTION

To urge the United States Congress, the President of 1
the United States, and the United States 2
Environmental Protection Agency to immediately 3
suspend the Proposed Air Pollution Transport Rule. 4

BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF OHIO
(THE SENATE CONCURRING):

       WHEREAS, On August 2, 2010, the United States Environmental 5
Protection Agency (EPA) published its Proposed Air Pollution 6
Transport Rule (Proposed Transport Rule), 75 Fed. Reg. 45,210; and 7

       WHEREAS, Under the Proposed Transport Rule, the EPA proposes 8
to limit the interstate transport of power plant emissions from 9
electric generation units within 31 states, including Ohio, plus 10
the District of Columbia; and 11

       WHEREAS, The Proposed Transport Rule is part of a suite of 12
regulatory actions undertaken by the EPA targeting coal-fired 13
power plants with the objective of forcing electric utilities to 14
abandon coal as a fuel source by making it too expensive for 15
utilities to burn coal; and 16

       WHEREAS, The Electric Power Research Institute projects that 17
the future existence and viability of almost 50% of the nation's 18
coal-fired power plants are at risk due to the Proposed Transport 19
Rule and other EPA regulatory actions; and 20

       WHEREAS, The Proposed Transport Rule contains numerous 21
factual errors and incorrect assumptions about emission sources in 22
Ohio; and 23

       WHEREAS, The EPA used incorrect information in the Proposed 24
Transport Rule to model incorrect effects from Ohio emissions 25
sources on downwind states' air quality; and 26

       WHEREAS, The EPA used the results of its flawed modeling 27
procedures and inputs to propose overly stringent emission 28
limitations for the State of Ohio in the Proposed Transport Rule; 29
and 30

       WHEREAS, The EPA received numerous requests to extend the 31
public comment period on the Proposed Transport Rule beyond 32
October 1, 2010, but denied those requests; and 33

       WHEREAS, The EPA must provide an implementation schedule for 34
any proposed regulation that is reasonably achievable, but the 35
Proposed Transport Rule establishes unreasonable compliance 36
deadlines of 2012 and 2014, which do not provide adequate 37
opportunity to install pollution controls or implement fuel 38
switches for plants that are not currently equipped with such 39
controls or burning low sulfur fuel; and 40

       WHEREAS, The EPA failed to consider the economic implications 41
of numerous plants attempting to implement fuel switches in such a 42
short time frame, including coal shortages, artificial inflation 43
of low sulfur coal and natural gas prices, legal costs in 44
breaching existing long-term coal contracts, and disastrous 45
employment effects on the Ohio coal mining industry; and 46

       WHEREAS, The EPA failed to consider the economic implications 47
of pollution control equipment installation, such as construction 48
delays due to limited raw materials and skilled workforce when 49
completing numerous complicated retrofits, the lack of credit for 50
pollution control installations already made under the Clean Air 51
Interstate Rule, the lengthy outages necessary to complete 52
numerous complicated retrofits, the disincentive for retrofit 53
given the virtually nonexistent trading provisions in the Proposed 54
Transport Rule, and the increased cost of electricity to 55
consumers, when calculating the cost effectiveness of the emission 56
reductions required in Ohio; and 57

       WHEREAS, The EPA failed to protect the reliability of the 58
electric grid by not adequately considering the impact of outages 59
necessary to accommodate fuel switches and pollution control 60
installation within the narrow time frame necessary to comply with 61
the proposed overly stringent emission limitations; and 62

       WHEREAS, The EPA did not adequately consider the cost 63
effectiveness of downwind states making local emission reductions 64
within their own state borders, rather than burdening upwind 65
states with costly emission reductions; and 66

       WHEREAS, The EPA fails to allow for significant interstate 67
trading under the Proposed Transport Rule, which will result in an 68
increased burden on coal-dependent states like Ohio, even where 69
facilities operating in Ohio may have adequate credits generated 70
by out-of-state facilities that could ease the economic and timing 71
burdens on coal-fired assets in Ohio; and 72

       WHEREAS, Individual states should be allowed to fashion a 73
plan that meets the requirements of law in a manner that, in the 74
state's judgment, best conforms to the state's preferences and 75
regulatory policies; and 76

       WHEREAS, The EPA's use of a Federal Implementation Plan in 77
the Proposed Transport Rule undermines the rights of Ohio to 78
govern the method of its own compliance and is contrary to the 79
provisions in the Clean Air Act because Ohio's State 80
Implementation Plan has never been disapproved; and 81

       WHEREAS, The Proposed Transport Rule and the related EPA 82
actions appear to be an attempt by the EPA to unilaterally develop 83
and implement a new nationwide greenhouse gas regulatory scheme 84
entirely without the involvement or oversight by the elected 85
leaders of the United States Congress or the involvement of 86
individual states; and 87

       WHEREAS, The EPA's unbalanced and short-sighted actions have 88
the potential to cause severe economic harm to Ohio and the 89
country through the destruction of jobs, elimination of entire 90
industries, and large increases in energy costs across the nation; 91
now therefore be it 92

       RESOLVED, That the members of the 129th General Assembly of 93
the State of Ohio urge the United States Congress, the President 94
of the United States, and the EPA to immediately suspend the 95
Proposed Transport Rule so that the EPA can correct data inputs 96
and assumptions in order to address the numerous concerns and 97
incorrect data identified by those commenting on the Proposed 98
Transport Rule, have an additional comment period on the Proposed 99
Transport Rule and all supplemental Notices to allow for a full 100
evaluation of the proposed regulations, conduct a detailed study 101
of the economic impacts of the Proposed Transport Rule and 102
alternatives that includes economic impacts on related industries 103
in Ohio such as the coal industry, and re-assess the cumulative 104
impact of all pending regulations likely to affect the electric 105
utility and coal industries to determine a consolidated approach 106
calculated to maintain the viability of economically sound assets; 107
and be it further 108

       RESOLVED, That the members of the 129th General Assembly of 109
the State of Ohio urge the United States Congress, the President 110
of the United States, and the EPA to adequately protect the 111
thousands of coal-related jobs in the affected upwind states, 112
including Ohio, to avoid further harming the economies of those 113
states; and be it further 114

       RESOLVED, That the Legislative Clerk of the House of 115
Representatives transmit duly authenticated copies of this 116
resolution to the President of the United States, the 117
Administrator of the EPA, the Speaker and Clerk of the United 118
States House of Representatives, the President Pro Tempore and 119
Secretary of the United States Senate, the members of the Ohio 120
Congressional delegation, and the news media of Ohio. 121

WHEREAS, On August 2, 2010, the United States Environmental	5
Protection Agency (EPA) published its Proposed Air Pollution	6
Transport Rule (Proposed Transport Rule), 75 Fed. Reg. 45,210; and	7

WHEREAS, Under the Proposed Transport Rule, the EPA proposes	8
to limit the interstate transport of power plant emissions from	9
electric generation units within 31 states, including Ohio, plus	10
the District of Columbia; and	11

WHEREAS, The Proposed Transport Rule is part of a suite of	12
regulatory actions undertaken by the EPA targeting coal-fired	13
power plants with the objective of forcing electric utilities to	14
abandon coal as a fuel source by making it too expensive for	15
utilities to burn coal; and	16

WHEREAS, The Electric Power Research Institute projects that	17
the future existence and viability of almost 50% of the nation's	18
coal-fired power plants are at risk due to the Proposed Transport	19
Rule and other EPA regulatory actions; and	20

WHEREAS, The Proposed Transport Rule contains numerous	21
factual errors and incorrect assumptions about emission sources in	22
Ohio; and	23

WHEREAS, The EPA used incorrect information in the Proposed	24
Transport Rule to model incorrect effects from Ohio emissions	25
sources on downwind states' air quality; and	26

WHEREAS, The EPA used the results of its flawed modeling	27
procedures and inputs to propose overly stringent emission	28
limitations for the State of Ohio in the Proposed Transport Rule;	29
and	30

WHEREAS, The EPA received numerous requests to extend the	31
public comment period on the Proposed Transport Rule beyond	32
October 1, 2010, but denied those requests; and	33

WHEREAS, The EPA must provide an implementation schedule for	34
any proposed regulation that is reasonably achievable, but the	35
Proposed Transport Rule establishes unreasonable compliance	36
deadlines of 2012 and 2014, which do not provide adequate	37
opportunity to install pollution controls or implement fuel	38
switches for plants that are not currently equipped with such	39
controls or burning low sulfur fuel; and	40

WHEREAS, The EPA failed to consider the economic implications	41
of numerous plants attempting to implement fuel switches in such a	42
short time frame, including coal shortages, artificial inflation	43
of low sulfur coal and natural gas prices, legal costs in	44
breaching existing long-term coal contracts, and disastrous	45
employment effects on the Ohio coal mining industry; and	46

WHEREAS, The EPA failed to consider the economic implications	47
of pollution control equipment installation, such as construction	48
delays due to limited raw materials and skilled workforce when	49
completing numerous complicated retrofits, the lack of credit for	50
pollution control installations already made under the Clean Air	51
Interstate Rule, the lengthy outages necessary to complete	52
numerous complicated retrofits, the disincentive for retrofit	53
given the virtually nonexistent trading provisions in the Proposed	54
Transport Rule, and the increased cost of electricity to	55
consumers, when calculating the cost effectiveness of the emission	56
reductions required in Ohio; and	57

WHEREAS, The EPA failed to protect the reliability of the	58
electric grid by not adequately considering the impact of outages	59
necessary to accommodate fuel switches and pollution control	60
installation within the narrow time frame necessary to comply with	61
the proposed overly stringent emission limitations; and	62

WHEREAS, The EPA did not adequately consider the cost	63
effectiveness of downwind states making local emission reductions	64
within their own state borders, rather than burdening upwind	65
states with costly emission reductions; and	66

WHEREAS, The EPA fails to allow for significant interstate	67
trading under the Proposed Transport Rule, which will result in an	68
increased burden on coal-dependent states like Ohio, even where	69
facilities operating in Ohio may have adequate credits generated	70
by out-of-state facilities that could ease the economic and timing	71
burdens on coal-fired assets in Ohio; and	72

WHEREAS, Individual states should be allowed to fashion a	73
plan that meets the requirements of law in a manner that, in the	74
state's judgment, best conforms to the state's preferences and	75
regulatory policies; and	76

WHEREAS, The EPA's use of a Federal Implementation Plan in	77
the Proposed Transport Rule undermines the rights of Ohio to	78
govern the method of its own compliance and is contrary to the	79
provisions in the Clean Air Act because Ohio's State	80
Implementation Plan has never been disapproved; and	81

WHEREAS, The Proposed Transport Rule and the related EPA	82
actions appear to be an attempt by the EPA to unilaterally develop	83
and implement a new nationwide greenhouse gas regulatory scheme	84
entirely without the involvement or oversight by the elected	85
leaders of the United States Congress or the involvement of	86
individual states; and	87

WHEREAS, The EPA's unbalanced and short-sighted actions have	88
the potential to cause severe economic harm to Ohio and the	89
country through the destruction of jobs, elimination of entire	90
industries, and large increases in energy costs across the nation;	91
now therefore be it	92

RESOLVED, That the members of the 129th General Assembly of	93
the State of Ohio urge the United States Congress, the President	94
of the United States, and the EPA to immediately suspend the	95
Proposed Transport Rule so that the EPA can correct data inputs	96
and assumptions in order to address the numerous concerns and	97
incorrect data identified by those commenting on the Proposed	98
Transport Rule, have an additional comment period on the Proposed	99
Transport Rule and all supplemental Notices to allow for a full	100
evaluation of the proposed regulations, conduct a detailed study	101
of the economic impacts of the Proposed Transport Rule and	102
alternatives that includes economic impacts on related industries	103
in Ohio such as the coal industry, and re-assess the cumulative	104
impact of all pending regulations likely to affect the electric	105
utility and coal industries to determine a consolidated approach	106
calculated to maintain the viability of economically sound assets;	107
and be it further	108

RESOLVED, That the members of the 129th General Assembly of	109
the State of Ohio urge the United States Congress, the President	110
of the United States, and the EPA to adequately protect the	111
thousands of coal-related jobs in the affected upwind states,	112
including Ohio, to avoid further harming the economies of those	113
states; and be it further	114

RESOLVED, That the Legislative Clerk of the House of	115
Representatives transmit duly authenticated copies of this	116
resolution to the President of the United States, the	117
Administrator of the EPA, the Speaker and Clerk of the United	118
States House of Representatives, the President Pro Tempore and	119
Secretary of the United States Senate, the members of the Ohio	120
Congressional delegation, and the news media of Ohio.	121