The EPA is expected to announce by the end of the week that it does not believe it has the authority under the Clean Air Act to regulate emissions of carbon dioxide and other greenhouse gases. This decision comes after the EPA issued rules making it easier for power plants and factories to upgrade without costly pollution controls. The decision is the administration's first legal response to lawsuits seeking to force regulation of greenhouse gas emissions, and environmentalists plan to sue the administration over its interpretation of the Clean Air Act. The outcome of this fight could affect various state-level efforts to cap greenhouse gas emissions.

1. V~~~~~~~
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~ Richard P. Theroux
08/28/2003 11:29:14 AM
Record Type: Record
Paul R. Noe/OMB/EOP@EOP, Phil
To: Arthur G. Fraas/OMB/EOP@EOP, Kevin F. Nayland/OMBIEOP@EOP,
CooneyfCEQ/EOP@EOP
cc:
Subject: EPA to Say It Lacks Authority To Regulate Gi eenhouse Gases
August 2 8, 2003 11:04 a~m. EDT
POLITICS ANDJ POLICY
EPA to Say It Lacks Authority
To Regulate Greenhouse Gases
By JEFFREY BALL
Staff Reporter of THE WALL STREET JOU UAL
this week that it doesn't
The Bush administration is expected to forme ily announce by the end of
gases," a
think it has the authority to cap emissions of carbon dioxide and other "greenhouse
including
move likely to intensify a baffle between the administration and environmentalists,
some state regulators.
authority under the
Word from the Environmental Protection Ag nythat it believes it lacks
are raising the Earth's
nation's Clean Air Act to regulate emissions that some scientists believe
of rules: those making it
temperature comes just after the agency issued another controversial set
antipollution controls.
easier for older power plants and factories to be upgraded without costly
HEATING UP
* EPA's New Rules Ease Power-Plant Upgra lesl1
08/28/03
* Clean Air Act Change Spurs Criticism ofI ush2
08/25/03
* Global Warming Skeptics Are Facing Stor Clouds3

2. 07/31/03
petition
plans on Thursday or Friday to deny a 1999
An EPA official confirmed that the agency on the
i -nediately provide further details
arguing for regulation, but the official wouldn't
agency's specific arguments.
little surprise.
isn't a p llutant it can regulate comes as
The EPA's decision that carbon dioxide suspected
force ir dustry to curb emissions of the chief
President Bush has long resisted calls to designed to
Kyoto Protocol, the international treaty
greenhouse gas. And he has rejected the economy.
that mandated cuts would hurt the U.S.
reduce carbon-dioxide emissions, arguing
to lawsuits
the administration's first legal response
Still, the EPA's announcement will mark
se-gas emissions. Armed with that paperwork,
seeking to force the agency to regulate greenho to argue
take te next step and sue the administration
some of those activists now say they will
is wrng.
that its interpretation of the Clean Air Act
dioxide] is a pollutant," says Kert
"We have scientists lined up in the wings to tes ify [that carbon
the international environmental group.
Davies, research director for the U.S. arm of Greenpeace, change everything.'
a pollutrnt, it will
"If carbon dioxide is legally defined as
global-warming baffles across the country.
The outcome of this fight could affect various
to cap carbon-dioxide emissions. Several
Congress is considering controversial proposal action.
in hopes of forcing the agency to take similar
Northeastern states have sued the EPA
along the East Coast are moving to limit
Meanwhile, California and several states federal
becau, e of what they call inaction by the
greenhouse-guas emissions on their own
government.
as
substances that contribute to such problems
Traditionally, the Clean Air Act has regulated Assessment, a
the International Center for Technology
respiratory ailments or smog. But in 1999, Act also
filed a petition arguing that the Clean Air
Washington-based environmental group,
greenhouse gases, including carbon dioxide.
requires the EPA to regulate emissions of sus ected that
The law requires EPA to regulate- substances
A central point in the group's argument: things as
it de Fines effects on welfare to include such
endanger public health or "welfare," and
effects'on weather or climate.
to the 1999
and Bush administrations -- didn't respond
When the EPA -- under both the Clinton the
gy Assessment, joined by Greenpeace and
petition, the International Center for Technol response.
Sierra Club, sued the EPA last year to force
California Legislation May Be Affected
emissions of greenhouse gases. Since then,
The 1999 petition addressed only automotive

3. gas emissions from a variety of sources,
however, states have sought to limit greenhouse- w
cs. Automobiles and pwrpat r h
including power plants, in addition to cars and
in t e U.S. Carbon dioxide is produced by the
biggest sources of carbon-dioxide emissions
pla it or gasoline in an auto engine.
burning of fossil fuels -- say, coal in a power
e "just shows this administration is continuing
The EPA's decision not to regulate carbon dioxi
ich law, and which good policy suggest we
to ignore global warming, which all science, w
of the environmental protection bureau of
should be addressing quickly," said Peter Lehnei , chief
of the states that has sued the EPA to regulate
the attorney general's office for New York, one
e got their heads in the sand on this."
power plants' carbon-dioxide emissions. "They'N
a3 the latest example of the Bush administration
Environmentalists criticized the EPA decision
the big polluters in the auto; coal and oil
helping industry. "This is another big favor for
the Natural Resources Defense Council, a New
industries," said David Doniger, a lawyer for
York-based environmental group.
raifications in California, where the legislature
The EPA's decision is likely to have particular has
e: issions from automobiles. The auto industry
has passed a state law to limit carbon-dioxide
once the state finalizes the law's details; the
said it plans to sue the state to block that law
aback-door state effort to regulate fuel economy,
industry argues the California law amounts to
the nation's fuel-economy law.
an authority that's reserved for Washington under
ye argued that the state has authority under the
California regulators, and environmentalists, h
But Alan Lloyd, head of the California Air
Clean Air Act to regulate carbon-dioxide ernis, ions.
agency, said the EPA's ruling could jeopardize
Resources Board, the state's clean-air regulator
that effort.
mia," he said, though he noted he hadn't yet seen
"This could have a significant impact for Calif the
again, you see Washington basically ignoring
the EPA's decision. "What's devastating is, yet
states doing what they can to protect the
science and, in some cases, stepping up to stor
environment."