Finding A Better Finding A Better Approach to Approach to Cleaner Air Cleaner Air Transforming the SIP ProcessTransforming the SIP Process

Why the SIP Process No Longer Works1.Responsibility and authority are not aligned

a.SIP-related emissions in Houston are now dominated by federally preempted sources such as cars and trucks

b.Increased role of interstate/international pollution

2.SIPs focus state/local governments narrowly on addressing one pollutant at a time (sometimes to the detriment or avoidance of other concerns) and on short-term solutions.

3.SIP process focuses on procedure over results

4.SIPs encourage resources to be spent on inefficient/ineffective control strategies and on delay tactics

SIP Related Emissions Now SIP Related Emissions Now Dominated by Federal Sources Dominated by Federal Sources

that States Cannot as that States Cannot as Efficiently and Effectively Efficiently and Effectively

ControlControlNatural Sources

5% Cars & Trucks

29%Industry32%

Off-Road34%

Houston 2007

Dallas 2007

Interstate/International Transport Interstate/International Transport More of an Issue and Outside of More of an Issue and Outside of

State ControlState Control EPA found in CAIR that

Arkansas significantly contributes to Houston ozone

TX in CAIR because impacts 2 counties in Illinois

Over ½ of ozone in DFW and sometimes Houston is background

Cannot tell another state what to do

→→

SIP Process Focuses Community Narrowly on Addressing One

Pollutant at a Time and on Finding Short-Term Solutions

SIP Process Encourages SIP Process Encourages Resources to be Spent on Resources to be Spent on

Delay TacticsDelay Tactics Ex./Houston 2010

deadline, 2007 submittal

>50% NOx reduction needed

Cannot timely attain—but compelled to spend tens of millions: (1) developing unviable control strategies and (2) justifying a bump-up

money would be better spent reducing pollution

A Better PathA Better Path

SIP Transformation SIP Transformation WorkgroupWorkgroup

Ad hoc group of Ad hoc group of industry industry representatives, representatives, government officials, government officials, and other community and other community leadersleaders

Brainstorming and Brainstorming and issue developmentissue development

Meetings with Meetings with public officials, public officials, environmental environmental groups, and industry groups, and industry leadersleaders

Legislative and legal Legislative and legal initiativesinitiatives

List of Political and List of Political and Community Leaders Community Leaders

ConsultedConsulted Office of Senator HutchisonOffice of Senator Hutchison Office of Senator CornynOffice of Senator Cornyn Office of Congressman Office of Congressman

CulbersonCulberson Office of Congressman GreenOffice of Congressman Green Office of Congressman HallOffice of Congressman Hall Office of Congressman BartonOffice of Congressman Barton Office of Congressman BradyOffice of Congressman Brady Office of Congressman McCaulOffice of Congressman McCaul Office of Congressman GonzalezOffice of Congressman Gonzalez Office of Governor Rick PerryOffice of Governor Rick Perry Texas House Environmental Texas House Environmental

Regulation Committee Chairman Regulation Committee Chairman Dennis BonnenDennis Bonnen

Mayor Bill WhiteMayor Bill White TCEQ Chairman White TCEQ Chairman White National Stone, Sand and Gravel National Stone, Sand and Gravel

AssociationAssociation U.S. Chamber of Commerce U.S. Chamber of Commerce

Judge Robert Eckels Judge Robert Eckels Doug Foshee, CEO, El Paso Doug Foshee, CEO, El Paso

CorporationCorporation American Road & Transportation American Road & Transportation

Builders AssociationBuilders Association National Association of National Association of

ManufacturersManufacturers National Association of Home National Association of Home

BuildersBuilders County Executives of AmericaCounty Executives of America Jeff Holmstead (former EPA air Jeff Holmstead (former EPA air

chief), Lisa Jaeger (former EPA chief), Lisa Jaeger (former EPA General Counsel), and Scott Segal General Counsel), and Scott Segal (Senior lobbyist and attorney for (Senior lobbyist and attorney for Bracewell & Giuliani)Bracewell & Giuliani)

Rob Brenner, Director, Office of Rob Brenner, Director, Office of Policy Analysis and Review, Policy Analysis and Review, USEPA and StaffUSEPA and Staff

Larry Starfield, EPA Region VILarry Starfield, EPA Region VI Laura Fiffick, City of DallasLaura Fiffick, City of Dallas American Electric PowerAmerican Electric Power

What potential exists for What potential exists for SIP transformation?SIP transformation? Within current systemWithin current system

Subpart 2 extremely prescriptiveSubpart 2 extremely prescriptive Courts narrowly construing Subpart 2Courts narrowly construing Subpart 2

Outside current systemOutside current system Legislative opportunities may especially Legislative opportunities may especially

exist if CO2 legislation moves forwardexist if CO2 legislation moves forward Best path may be to focus on creating a new Best path may be to focus on creating a new

multi-pollutant air quality management multi-pollutant air quality management process that is the next “evolution” in air process that is the next “evolution” in air quality planningquality planning

Benefits to the Greater Benefits to the Greater Houston Partnership in Houston Partnership in Leading this EffortLeading this Effort

Create a better business climate and help Create a better business climate and help maintain/create jobsmaintain/create jobs

Improve public health and the image of the Improve public health and the image of the communitycommunity

Ensure more emission reductions at less cost Ensure more emission reductions at less cost to businesses and taxpayersto businesses and taxpayers

Focus community on a holistic, long-term, and Focus community on a holistic, long-term, and results-oriented approach to air quality results-oriented approach to air quality planning planning

Advance the Partnership’s position as a Advance the Partnership’s position as a national leader in improving air qualitynational leader in improving air quality

Leadership Opportunity for Leadership Opportunity for the Greater Houston the Greater Houston PartnershipPartnership

Sentiment in Washington to create more Sentiment in Washington to create more nation-wide support for the SIP reform effortnation-wide support for the SIP reform effort—especially from cities, counties, and states —especially from cities, counties, and states

The Greater Houston Partnership stated in a The Greater Houston Partnership stated in a previous mission statement that one of its previous mission statement that one of its goals was to create a national clean air goals was to create a national clean air workgroup workgroup

Recommend the following:Recommend the following:1.1. Formal endorsement by GHP Board of SIP Formal endorsement by GHP Board of SIP

reform and agreement to lead effort reform and agreement to lead effort 2.2. Assign SIP reform to a committee Assign SIP reform to a committee 3.3. Create a national clean air workgroup for Create a national clean air workgroup for

the specific task of transforming the SIP the specific task of transforming the SIP process process

Mission Statement of National SIP Mission Statement of National SIP Transformation WorkgroupTransformation Workgroup

Mission Statement:Mission Statement:The purpose of the Federal SIP Transformation Workgroup is to draw together national support for transforming the SIP process into a more results-oriented, efficient, and holistic air quality planning program

Objectives of SIP Transformation: Objectives of SIP Transformation: Properly align responsibility with authority by giving EPA primary Properly align responsibility with authority by giving EPA primary

responsibility for achieving the NAAQS..responsibility for achieving the NAAQS.. Create a multi-pollutant, long-term, results-oriented approach to air quality Create a multi-pollutant, long-term, results-oriented approach to air quality

planning.planning. First Phase Action Items for Federal SIP Transformation First Phase Action Items for Federal SIP Transformation

Workgroup:Workgroup: Bring together at least 4 other metropolitan areas to participate in the Bring together at least 4 other metropolitan areas to participate in the

workgroup. workgroup. Host an initial kick-off meeting for the workgroup. Host an initial kick-off meeting for the workgroup. Develop material for all workgroup members to use in educating their Develop material for all workgroup members to use in educating their

constituencies and elected officials about the problem and need for reform.constituencies and elected officials about the problem and need for reform. Obtain letters of support from elected officials representing these Obtain letters of support from elected officials representing these

metropolitan areas and states.metropolitan areas and states. Host a national conference on SIP reform.Host a national conference on SIP reform. Coordinate a lobbying effort for each of the metropolitan areasCoordinate a lobbying effort for each of the metropolitan areas