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Bush Orders First Federal Regulation of Greenhouse Gases

WASHINGTON, DC, May 14, 2007 (ENS) - After resisting the
regulation of greenhouse gases since he took office in 2001, President
George W. Bush today signed an Executive Order directing four federal
agencies to develop regulations limiting greenhouse gas emissions from new
mobile sources. Greenhouse gases, such as carbon dioxide emitted by the
combustion of fossil fuels, contribute to global climate change.

The President directed the U.S. Environmental Protection Agency, EPA, the
Department of Transportation, the Department of Energy, and the Department
of Agriculture to work together "to protect the environment with respect to
greenhouse gas emissions from motor vehicles, nonroad vehicles, and nonroad
engines, in a manner consistent with sound science, analysis of benefits and
costs, public safety, and economic growth," the Executive Order states.


President George W. Bush announces his new greenhouse gas policy in the
White House Rose Garden. From left: Energy Deputy Secretary Clay Sell,
Transportation Secretary Mary Peters, President Bush, EPA Administrator
Stephen Johnson, and Agricultural Secretary Mike Johanns. (Photo by Joyce
Boghosian courtesy The White House)

The President's new policy is based on a decision by the U.S. Supreme Court
April 2 in Massachusetts v. EPA that the Bush administration failed to
follow the requirements of the Clean Air Act when it refused to regulate
greenhouse gas emissions from motor vehicles.

Announcing his new policy at the White House today, President Bush said,
"Last month, the Supreme Court ruled that the EPA must take action under the
Clean Air Act regarding greenhouse gas emissions from motor vehicles. So
today, I'm directing the EPA and the Department of Transportation, Energy,
and Agriculture to take the first steps toward regulations that would cut
gasoline consumption and greenhouse gas emissions from motor vehicles, using
my 20-in-10 plan as a starting point."

The president announced his "20-in-10 plan" in January during his State of
the Union address. It aims to cut America's gasoline usage by 20 percent
over the next 10 years.

President Bush announces his 20-in-10 plan during his State of the Union
address. January 23, 2007. (Photo courtesy The White House)

Bush has sent Congress a proposal that would meet this goal in two steps.
First, a mandatory fuel standard that requires 35 billion gallons of
renewable and other alternative fuels by 2017. "That's nearly five times the
current target," he said.

The second step is an increase in fuel efficiency standards for light trucks
and cars. 

"The steps I announced today are not a substitute for effective
legislation," Bush said today. "Members of my Cabinet, as they begin the
process toward new regulations, will work with the White House, to work with
Congress, to pass the 20-in-10 bill."

Developing regulations will require "coordination across many different
areas of expertise," Bush said today.

"This is a complicated legal and technical matter, and it's going to take
time to fully resolve. Yet it is important to move forward, so I have
directed members of my administration to complete the process by the end of
2008." Bush's term of office expires January 20, 2009.

EPA Administrator Stephen Johnson said, "This is a complex issue, and EPA
will ensure that any possible rulemaking impacting the emissions from all
new mobile sources throughout the entire United States will adhere to
federal law." 

Johnson said that while the 20-in-10 plan would serve as a guide, "we have
not reached any conclusions about what any final rule will look like."

"We will solicit comment on a proposed rule from a broad array of
stakeholders and other interested members of the public," he said. "Our
ultimate decision must reflect a thorough consideration of public comments
and an evaluation of how it fits within the scope of the Clean Air Act."


Traffic in the San Francisco Bay Area. Each vehicle emits greenhouse gases
into the atmosphere. (Photo courtesy Minesweeper)

"While this is the first regulatory step," said Johnson, "it builds on the
Bush administration¹s unparalleled financial, international and domestic
commitments to reducing global greenhouse gas emissions.

"Since 2001, EPA and the entire administration have invested more than $37
billion to study climate change science, promote energy-efficient and carbon
dioxide-reducing technologies, and fund tax incentive programs," Johnson
said. "That¹s more money than any other country in the world has spent to
address this global challenge."

On Capitol Hill, Speaker of the House Nancy Pelosi said, "The President's
announcement today is one more in a long series of pronouncements claiming
to reduce our dependence on foreign oil. Yet after six years of failed
energy policies that have favored Big Oil, the American people are still
left with record gas prices and record dependence on foreign oil."

"It appears that the President wants to run out the clock to the end of his
term without addressing our energy needs, because the executive order will
do nothing to promote energy independence. Instead," Pelosi said, "it is
clearly designed to bog down the Environmental Protection Agency in a
bureaucratic interagency process that will ensure that no steps are taken to
regulate greenhouse gases from motor vehicles."

"Here in the House, we are working to develop legislation that will reduce
energy dependence and global warming emissions; we will introduce a package
of initiatives that will make this July 4th Energy Independence Day."

Congressman Edward Markey, a Massachusetts Democrat who chairs the Select
Committee on Energy Independence and Global Warming, today welcomed
President Bush¹s reiteration of his "20-in-10" plan, which includes a goal
of increasing fuel economy standards by four percent a year for 10 years,
but warned that such a goal will never be achieved unless this requirement
is made mandatory through legislation.


Massachusetts Congressman Edward Markey is chairman of the House Select
Committee on Energy Independence and Global Warming. (Photo courtesy Office
of the Congressman)

"After six years of hemming and hawing on setting fuel economy standards,
the President has suddenly discovered the regulatory powers he has had all
along," Markey said.

"Only asking for agency heads to take the first steps towards new rules will
leave motor vehicle fuel economy stuck in neutral until Bush¹s successor
takes office," Markey added.

Senate Majority Leader Harry Reid said, "Six years ago this week, the
Bush-Cheney secret task force made up of oil and energy company lobbyists
released its report on the nation's energy policy. Since then, the
administration has rolled back environmental regulations, ignored climate
change and under-funded the energy research budget. Meanwhile, our oil
dependency and consumption have grown, harming our national security and
leaving America vulnerable to price shocks and supply disruptions."

"Democrats are committed to achieving greater energy independence - an issue
this administration and past Republican Congresses have failed to adequately
address. In the coming weeks, we will move forward with bipartisan
legislation that will increase the production of clean renewable fuels,
improve energy efficiency, punish gas price gougers and support research on
greenhouse gas capture and storage," said Reid.

The oil savings that might be obtained by the President's proposal may be
less than the expected savings from the projected increases in new vehicle
fuel economy due to market-driven increases in the sale of unconventional
vehicle technologies, such as flex-fuel, hybrid, and diesel vehicles, and a
slowdown in the growth of new light truck sales, Reid said based on figures
in the Energy Department's Annual Energy Outlook 2006.

Environmental groups were quick to criticize the new policy. Friends of the
Earth, one of the original plaintiffs in Massachusetts v. EPA, said the
President's new policy does little to address the Supreme Court's ruling.

Friends of the Earth President Brent Blackwelder said, "The President¹s
proposal focuses primarily on replacing oil with renewable energy sources
such as corn ethanol, and the facts are clear ­ substituting most
formulations of corn ethanol for oil does almost nothing to reduce
greenhouse emissions."

"Additionally, by directing his administration to do nothing but study this
issue until the end of 2008, when a new president is coming into office,
President Bush passed the buck on global warming at a time when we cannot
afford delay," Blackwelder said.

Some view the Bush policy as a step backward that is weaker than existing
targets that were signed into law in 1992 by his father, President George
Bush Sr. 

"The President's policy is a retreat, not an advance. It would weaken
existing federal targets for alternatives to petroleum fuel, not improve
them," said Julie Teel, an attorney for the Center for Biological
Diversity¹s Climate, Air, Energy Program. "This shameful ploy proves that
the president still doesn¹t understand the dire consequences of global
warming." 

The 1992 law required the replacement of 10 percent of petroleum motor fuel
consumption with alternative fuels by the year 2000 and 30 percent by 2010.

To attain this goal, the law first required a replacement of 75 percent of
federally owned vehicles with alternative fuel vehicles by 1999. The
Department of Energy was then required to determine if extension of the
regulation to municipal and corporate fleets is necessary to meet the
national 30 percent reduction target. If so, the Department is required to
institute alternative fuel standards for municipal and corporate fleets.


A government worker fuels her car with a methanol blend. Federal and
nonfederal U.S. fleets were estimated to include 12,000 methanol-85 vehicles
as of December 1994. (Photo by Warren Gretz courtesy NREL)

The federal government violated the Energy Policy Act by not converting its
own fleets to alternative fuel vehicles and not establishing a municipal and
corporate standard when it was clear that federal action alone was
insufficient. 

The Center for Biological Diversity and Friends of the Earth sued over these
violations, winning one court order in 2002 and two more in 2006 requiring
compliance with both aspects of the law.

In response, the federal government has increased the number of fuel
efficient vehicles in its fleets. However, it still has not set alternative
fuel vehicle requirements for municipal and corporate fleets.

Instead, on March 15, 2007, it issued a ruling which delayed the compliance
date for a 30 percent reduction from 2010 to 2030. The rule is opposed by
environmental groups and Teel says it is "likely" to be challenged in court.

Frank O'Donnell of the nonprofit Clean Air Trust interpreted the Executive
Order as "an attempt to sideswipe the greenhouse gas standards developed by
the state of California and adopted by 11 other states. The Bush
administration apparently wants to knock those standards off the road."

O'Donnell says because the four federal agencies are expected to concur on
any news regulation, and must do so under the direction of the White House
Office of Management and Budget and the Council on Environmental Quality

"In other words," O'Donnell said, "the White House has just wrapped the EPA
in a straitjacket of bureaucratic process."

The nonprofit Diesel Technology Forum used the president's announcement to
promote diesel fuel as part of the fuel economy and global warming solution.

Allen Schaeffer, the Forum's executive director, said, "Diesel cars, trucks
and SUVs deliver superior fuel economy - typically 20 percent to 40 percent
better than a comparable gasoline vehicle - without requiring drivers to
sacrifice the power and performance Americans demand.

"The U.S. Environmental Protection Agency estimates that America could save
up to 1.4 million barrels of oil per day - an amount equivalent to the oil
we currently import from Saudi Arabia - if one-third of U.S. cars, pickup
trucks and SUVs were diesel-powered," he said.

Manufacturers, including Dodge, General Motors, Ford, BMW Group, Mercedes,
Jeep, Audi, Volkswagen, Honda, Nissan, Hyundai and Mitsubishi, are planning
to introduce new clean diesel vehicles in the next two to three years.

The Grocery Manufacturers Association, GMA, supports the goal of reducing
America's reliance on fossil fuels but cautioned that a sharp increase the
use of corn for ethanol could hamper the ability of the food industry to
provide consumers, both in the U.S. and around the world, with areliable and
affordable supply of food.

Cal Dooley, GMA president and CEO, said, "Consumers have already seen an
increase in the cost of food, as corn traditionally used for livestock feed
and processed food is increasingly used for fuel. In fact, the price of corn
has nearly doubled in the last nine months."


Cal Dooley is president and CEO of the Grocery Manufacturers Association. He
served as a California Democrat in the U.S. Congress from 1991 to 2005.
(Photo courtesy GMA)

"In addition to its inflationary impact, there are many unintended, but
nonetheless important, consequences of an ambitious corn ethanol strategy,"
Dooley warned. 

"A 35 billion gallon ethanol mandate will require a substantial increase in
the use of fossil fuels for corn and ethanol processing and transportation,
as well as an additional 15 million acres devoted to corn crops, which will
encroach on agriculturally marginal and environmentally sensitive land," he
said. 

To meet this mandate, the U.S. would have to cut its corn exports to ensure
an adequate supply of corn for food and fuel, Dooley said. "Such a reduction
will result in a decrease in the amount of food available overseas, which in
turn will have a negative affect on world hunger."

On a conference call with reporters today, Agriculture Secretary Mike
Johanns attempted to assure the public that ethanol manufacture would not
take food out of people's mouths.

"We've already put forth a Farm Bill proposal that would increase funding
for renewable energy by $1.6 billion. Without question, the President's
proposals represent the most significant commitment to renewable energy
that's ever been proposed in farm legislation," Johanns said. "It's focused
on cellulosic ethanol, which is where we believe the next step is in terms
of ethanol development. And it's also one of the building blocks that will
help us achieve 20-in-10."

Cellulosic ethanol is not made from corn kernels but is distilled from the
fermentation of sugars from the entire plant, not just the grains. Perennial
grasses, corn stover, sugar can bagasse, logging slash, and yard trimmings
can all be sources of cellulosic ethanol.

The Farm Bill proposals would expand research into cellulosic ethanol, to
improve biotechnology, and create a better crop for conversion to renewable
energy and to improve that conversion process, making it more efficient and,
therefore, more commercially viable," Johanns said.

The American Petroleum Institute, API, an industry trade association, said
the industry has invested heavily to meet and exceed the federal requirement
for ethanol-blended gasoline. "In 2006, we used 25 percent more than
required - and, according to Energy Information Administration estimates,
will exceed the 2007 requirement as well."

The API says that the role of ethanol as a transportation energy source will
be limited until technology breakthroughs permit economic production of
cellulosic ethanol from biomass.

"The timing of such breakthroughs is highly speculative," the API said.
"There is no guarantee that technologies would emerge to enable large-scale
economic cellulosic ethanol production in the next decade and ensure
reliable energy for U.S. consumers at affordable prices."

It is "critical" that any alternative fuels standard include technology and
feasibility reviews that would trigger adjustments to mandates to ensure
companies and consumers are not penalized if obstacles arise that prevent
meeting usage targets, said the API.

Chris Somerville, professor of biological sciences at Stanford University
and director of the Carnegie Institution's Department of Plant Biology,
estimates it will take seven to 10 years to produce cellulosic ethanol at
competitive prices.

"It is certainly possible to achieve Bush's goals technically," he said.
"The question in my mind is whether investors are ready to put up the money
required to make it happen."

Copyright Environment News Service (ENS) 2006. All Rights Reserved.
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