Comment to EPA on the Small Business Exemption
to Greenhouse Gas Rules by December 28
Comments on EPA's proposed greenhouse gas rule that will exempt small businesses from new permitting and control-technology mandates are due December 28.
On October 27, the U.S. Environmental Protection Agency (EPA) proposed a rulemaking that will determine the applicability thresholds for greenhouse gas (GHG) emissions under the Prevention of Significant Deterioration (PSD) and title V programs of the Clean Air Act. EPA's rule to curb car emissions is expected to be finalized this March. That rulemaking will trigger part of the Clean Air Act that immediately requires businesses to obtain PSD permits and adopt technologies to lower emissions. The new permitting and controls mandate will impact all businesses that emit over 100 tons of CO2 per year. According to EPA's own estimates, that would require 6 million additional permits at an average cost of $46,400 per permit. EPA recognized that the majority of small firms do not significantly contribute to greenhouse gas emissions, so EPA is proposing to "tailor" the upcoming GHG requirements to larger contributors, exempting small businesses. EPA proposes to exempt small firms with under 25,000 tons per year of emissions. Comments on EPA's proposed "tailoring rule" are due December 28.
Analysis for SBCRR Subscribers
EPA is doing the right thing by exempting small businesses from the upcoming greenhouse gas regulations. However, there is a question whether the EPA is issuing the exemption for 6-years or whether the exemption is permanent. Small business stakeholders are encouraged to commend EPA for exempting small firms due to their negligible impact on greenhouse gas emissions. And, it would be appropriate for small business stakeholders to urge EPA to make the exemption permanent. Lastly, the EPA still lacks comprehensive analysis on how a series of greenhouse gas regulations will impact small business and steps that can be taken to minimize the impact on small firms while producing maximum environmental benefits. Small business stakeholders would be justified in calling upon EPA to issue a comprehensive analysis of the entire greenhouse gas regulatory structure and its impact on small firms. Only then can EPA flush out less burdensome alternatives with help from the small business stakeholder community.
Key Documents
- U.S. Small Business Administration's Office of Advocacy Comments on the Tailoring Rule (filed December 23, 2009) available on the Office's web-site: click here
- Regulation.gov docket established for EPA's Tailoring Rule: click here
- Proposed Rule (October 27, 2009): click here
- Regulatory Impact Analysis for Proposed Rule: click here
- U.S. Small Business Administration Office of Advocacy Comments on EPA's Proposed Endangerment Finding (June 23, 2009): click here
CPSC Extends Compliance Deadline for Lead Testing
On December 17, the Consumer Product Safety Commission extended the time businesses have to comply with independent lead testing and certification provisions of the Consumer Product Safety Improvement Act.
While the Consumer Product Safety Improvement Act may have been well-intended, the legal consequences of enforcing the new law is a nightmare for many small businesses, including clothing stores, book stores, thrift shops, toy retailers, and manufacturers. The law sets lead levels under a 300 parts-per-million threshold without a reasonableness test for those product components that would never expose users to lead. Business owners have been frustrated with how these requirements act as an absolute ban on many safe products. The CPSC's compliance deadline extension allows more time for businesses to navigate the new rules and for Congress to re-visit the reasonableness of certain provisions of the Consumer Product Safety Improvement Act.
Key Documents
About SBCRR
The Small Business Coalition for Regulatory Relief (SBCRR) is a coalition made up of small businesses and supporting organizations that are interested in federal regulatory developments. SBCRR provides coalition members with regular updates on regulatory proposals and opportunities for small business to provide input that can positively impact final agency decisions.
Contact:
Tom Sullivan
202.545.2909
tom.sullivan@nelsonmullins.com
The articles published in this newsletter are intended only to provide general information on the subjects covered. The contents should not be construed as legal advice or a legal opinion. Readers should consult with legal counsel to obtain specific legal advice based on particular situations.