To: Kenneth E. Phillipps who wrote (675022 ) 3/18/2005 7:31:25 AM From: Hope Praytochange Respond to of 769670 The Clean Air Follies Continue President Bush has no reason to act ashamed on the environment. Friday, March 18, 2005 12:01 a.m. EST One of these days it would be nice if the Bush Administration finally decided whether it really believes in the power of markets in environmental policy. The EPA has issued several rules over the past couple of years--two of them within the past week--intended to build on the successful "cap-and-trade" philosophy first articulated in the 1990 revisions to the Clean Air Act. The basic idea is that, rather than government mandating pollution-control for every source, it would be better simply to set overall emissions goals and let markets and human ingenuity figure out how to achieve the target. One new rule extends this policy from controlling acid rain to controlling urban smog and cancer-causing particulates. The second new rule targets mercury for the first time. These regulations will no doubt lead to big improvements, just as the 1990 rules did. Sulfur dioxide emissions are down about 40% compared with 1980 levels, and at half the cost of doing so through the command-and-control approach. Self-styled environmentalists predicted disaster about cap-and-trade back in 1990, so it's hardly surprising that they are doing so again. What is bizarre is that the Bush Administration continues to employ these same arguments against the cap-and-trade philosophy in a set of EPA-driven lawsuits against electric utilities. The issue in these cases--more than two dozen--is a set of rules dating from the 1977 Clean Air Act amendments known as New Source Review. They were intended to compel "new" sources of pollution--not existing ones--to install pollution-control technologies. And so everyone understood until the mid-1990s, when Bill Clinton's EPA suddenly labeled as "new" sources of pollution any power plants that installed a new turbine or did even minor modifications. These can be as miniscule as replacing ducts valued at less than 0.1% of the cost of a new power plant. The Bush Administration understood the contempt for the law displayed by this Clinton interpretation, and in 2003 it issued rules clarifying what kind of modification would and wouldn't trigger application of NSR. But at the same time it continued to pursue the old Clinton-era cases in court--and for no other discernable reason than fear of bad publicity from the environmentalists. Yet NSR is the paradigmatic example of the old command-and-control regulation. In arguing that it must be applied to the various power plants now in question, the Administration is arguing the opposite of its public policy position, which is that the cap-and-trade system is sufficient. And what political credit has the Administration received for selling its policy soul in this way? Less than zero. Consider the environmentalist reaction to this week's new mercury rule. "This is the most dishonest, dangerous and illegal rule I have ever seen come out of the EPA," says John Walke of the Natural Resources Defense Council. "It's unconscionable EPA is allowing power companies to trade in a powerful neurotoxin," says S. William Becker, who represents two groups of local environmental regulators. Mr. Becker at least is articulating a position with a shred of plausibility to it. That is, mercury is arguably uniquely toxic compared with the other pollutants regulated by a cap-and-trade system, which could in theory leave particular sources emitting unacceptably high levels. But in reality mercury emissions from clean American power plants are only a tiny fraction of the global total, which is why this is the first time any Administration has thought to regulate mercury, in any fashion. The main source of mercury toxicity in America is fish, often originating overseas, not in smokestacks in the Tennessee Valley. And there was no similar environmentalist outcry when previous Administrations (see Clinton) did nothing about the problem. Hyperbole like that from Messrs. Walke and Becker explains why the traditional environmental community has discredited itself in recent years, and why it was irrelevant during the last election. So the Bush Administration might as well go ahead and get honest and consistent about its clean air policy by dropping the NSR lawsuits. Are there any worse things left for these people to say about it?