Hill Heat

ESI’s EPA Budget Briefing

Witness

• Stephen L. Johnson, EPA Administrator

10:12 Johnson: As the administration sprints to the finish line, I believe this budget keeps it on the path to a cleaner future. With both demand and cost on the rise, innovators are pushing clean energy solutions. We estimate industry will explore thousands of oil and gas wells on tribal and national lands. The budget requests hundreds of new staff to assist our partners assess the projects.

The budget also attempts to address the serious challenge of global climate change.

The budget supports EPA’s collaborative work to protect our waterways. I’m proud of our response to hurricanes Katrina and Rita.

10:17 AM Feinstein The legal justification for your waiver rests heavily on the 1967 decision. In 1977 Congress amended the Clean Air Act, changing the language and intent of Section 209. The committee language stated that the intent was to provide California the broadest latitude possible. Your waiver justification document does not mention Congressional intent in 1977. Why?

Johnson I am bound by Section 209 and there are three very specific criteria. I only looked at one. Based on the record before me, again, affording California the broadest discretion, it does not mean that I am a rubber stamp. It is not a popularity contest.

10:49 Craig Sitting on EPW we get two bites at you. Today I won’t chew as hard.

Feinstein Even though that section allows other states to adopt California’s standards?

Johnson You raise a very good point. Section 209 and the law and the criteria does not allow me to consider what other states may or may not do. As I pointed out the more states that believe greenhouse gas emissions is a problem are making the very point that California is not unique. It is not exclusive. Rather it is a national problem requiring a national solution.

Feinstein According to the Washington Post, you overruled your legal and technical staff last October. Did a single one of your staff support a flat denial?

Johnson They presented me with a wide range of options, from approving to denying the waiver. They were all presented to me as legally defensible options. I appreciate the opportunity for their candid input, but the Clean Air Act gives me the responsibility alone.

Feinstein You are saying the technical and legal staff recommended approving the waiver. Is that correct?

Johnson They presented me with a wide range of options, from approving to denying the waiver. Generally it is my approach to ask for input, if they choose to give input, that’s fine. Routinely I seek input.

Feinstein We’ve been told that none of the staff was in favor of denying the waiver.

Johnson I received a range of options.

Feinstein I know that.

Johnson I respect the opportunity to receive candid opinions. My decision is not based on a popularity contest of opinions.

Feinstein You’re not answering the question, but there’s nothing I can do but interpret your non-answer.

10:26: Feinstein You’ve missed your 2007 deadline to make the health endangerment finding. Will you respect the direction of the highest court of the land?

Johnson I will commit to that we will make the decision. We are working on the implementation regulations. We have a number of court-ordered deadlines.

Feinstein When might we expect this?

Johnson I don’t have a date, but I assure you we will respond to Mass vs. EPA.

10:28 Allard I have some concerns about enforcement.

10:39 Leahy I’m going to divert for just a moment. I want to talk about mercury pollution. Your agency had the mercury rule. I said at the time I thought it was wrong. On February 8 the Court of Appeals for the DC Circuit, a very conservative court, agreed with my position and struck down your rule. If you had listened to my opinion you could have saved taxpayers significant fees. Does your agency plan to abide by the Clean Air Act, by the law?

Johnson Thank you for the question. Always follow the law, sir. The EPA and DOJ are currently evaluating the decision. We haven’t decided on a course of action. We also recognize because of the Clean Air Interstate Rule we have early reductions of mercury. We are disappointed the first regulation of mercury was struck down. We’re evaluating that now.

Leahy The court made their decision based on the arguments heard in the case. The AP reports officials have threatened states with disapproval for adopting more aggressive mercury regulations, despite what the EPA said in the court. If there was a misrepresentation by the government to the court that’s a serious matter. Have officials ever threatened states against instituting mercury regulations?

Johnson I don’t recall any firsthand knowledge. I don’t know if they have.

Leahy Will you go back and find out?

Johnson I’ll be happy to respond for the record.

Leahy I would like to know the answer. If the AP is correct, then the EPA gave misleading information to the courts. The courts, the Judiciary Committee would consider it a very serious matter. You adopted the Mercury Trading Rule in 2005 and committed to reducing mercury hot spots.

Johnson We haven’t decided yet.

10:50 Feinstein I believe very firmly your staff was in favor of the waiver unless you tell me otherwise. Did any other people in the administration weigh in on the waiver?

Johnson I received many opinions, the decision was my own.

Feinstein Did you discuss this with the White House?

Johnson I discuss major issues with the White House, I think that’s good government.

Feinstein I read the 48 pages. I find it not at all impressive. I think it is harmful to our state and the country. I’d like to go back to the remand. You have not given me a firm date. I find this unbelievable on what is called an Environmental Protection Agency, not an Administration Protection Agency.

Johnson I respectfully disagree that this is an easy decision. Justice Scalia set it up as a three-part test for me. If I find there is endangerment, I must regulate. If I find that there is not endangerment, I should not regulate. If there are other factors I need to consider them. The way the Clean Air Act operates, a decision in the regulation of mobile sources could have a significant impact on stationary sources. I know people are anxious for me to get on with business. Climate change is a serious issue. It’s one I’m carefully considering. Airlines, off-roads, marine, I could go on and on.

Feinstein How many personnel are working on the endangerment finding?

Johnson I don’t know exactly.

Feinstein We’ve been told noone is working on it. Is anyone working on it?

Johnson I know I am working on what are the next steps. It’s what I’m currently evaluating.

Feinstein How many of your staff are working on the endangerment finding?

Johnson I don’t know. I am currently evaluating what are the next steps to take in response to the Supreme Court, the Energy Act, the numerous petitions. I know we have staff working on a myriad issues. I know we have people working on major economies, reviewing McCain-Lieberman legislation, the Greenhouse Gas Registry. We have a lot of issues we’re working on.

Feinstein What I deduce is that none of your staff is working on it. I’ve got to believe you’re stonewalling.

Johnson I’m not stonewalling.

11:10 Feinstein Have you taken every Congressional earmark out of this budget?

Johnson I am told by our staff that the answer is yes.

11:30 Argument with Ted Stevens and Johnson over earmarks (and the definition of an earmark) and funding water and sewer facilities Alaskan villages.

11:37 Stevens I’m trying to seek re-election now. I don’t understand why it’s been reduced.

Stevens What did you ask the president for?

Johnson I support the president’s budget.

Stevens You going to answer my questions, sir?

Johnson brings in EPA water guy.

Stevens You can tell me what you requested OMB this year. What was that amount?

EPA water guy We requested the amount consistent with the 2004 request.

Stevens This is not a spending program, it’s a loan program.

Feinstein My staff says we never agreed to this.

Stevens This policy forces earmarks. It’s bureaucratic arrogance. Having served eight years in another administration, I don’t appreciate this. It sounds like your 04 was sacrosanct as far the government is concerned. It’s a crazy system. The Greenhouse Gas Registry. The White House proposed no money for this program. Sen. Klobuchar asked me about it. Why didn’t you put any money in this program?

Johnson We have $3.5 million this year. We expect by September of this year we will have a proposed regulation for the registry. I believe states are developing registries.

Stevens Is there any direction Congress would give you with regards to spending money you would follow?

Feinstein You’re right. I put in the $3.5 million. They need it for two years.

Johnson We are working on a draft regulation. I intend to make sure we obey our mandate.

Stevens Do you remember in the old days we dealt with this by bureau reclamation? We eliminated the job of the person who refused to follow our direction.

11:48 Feinstein There is no way for us to restore those cuts. I don’t even know if we want to pass this budget. Why run for the Senate? Why act as an appropriator? Why put our names on a budget that we know is going to fail to accomplish our purpose?

Stevens We’re better off on the 2008 budget. Did you ever think about that?

Johnson We believe this budget is a good budget. It balances the needs for moving forward at the same time we have to be good stewards of taxpayer money.

Stevens You should bring back the message that in all likelihood we’ll send the President a continuing resolution for 2009.

Feinstein The cuts go on and on and on. For the first time he said in so many words we’re not going to recognize any Congressional add. You’re saying the president conditions all funding. We don’t even need an Appropriations Committee!

11:51 Stevens He ought to read the Constitution. Arrogance. Pure arrogance.

Feinstein There is no jointness. We are to be a rubber stamp for the President’s request.

Stevens I don’t think the President even knows some of these items.

Feinstein Let me sum up by saying this is a very unhappy budget. The hearing is adjourned.

03/04/2008 at 10:00AM

Witnesses

• Dale Hall, Director, U.S. Fish and Wildlife Service
• Mark D. Myers, Director, U.S. Geological Survey

Ben Chandler (D-Ky.) I know that you all have talked some about the alarming loss of common birds in our country. Alarming it is. I almost can’t believe it. The numbers that I’ve seen are absolutely atrocious. And one thing that I’d like to explore with you real quick, the Audubon Society has stated that the cause of the dramatic decline of birds is the outright loss of habitat due to poor land use, the clear-cutting of forests, the draining of wetlands and sprawl. Now, in light of such a stinging indictment as that, how does the administration justify a 70 percent cut in land acquisition?

Hall I don’t know.

Norm Dicks (D-Wash.) That’s a good answer.

Chandler That’s one of the best answers I’ve heard in a while, because I think that’s accurate. I appreciate that.

02/28/2008 at 10:00AM

Sen. Barbara Boxer (D-Calif.) opening statement:

We are here today to review the Administration’s proposed Fiscal Year 2009 budget for the Environmental Protection Agency.

Since this is the Bush Administration’s final budget proposal, let’s ask ourselves a simple question:

Is EPA better able today to protect people and communities from serious public health and environmental problems than it was when this Administration took the reins?

The answer is a resounding “No.”

The Bush Administration’s proposed budget for 2009 represents a 26% decline in overall EPA funding since the Administration’s first budget was enacted, when adjusted for inflation. Budgets are about priorities – this shows the low priority that the Bush Administration places on environmental protection.

Witness

• Stephen L. Johnson, Administrator, Environmental Protection Agency

02/27/2008 at 10:00AM

Witness

• Stephen L. Johnson, Director. U.S. Environmental Protection Agency

From E&E News:

Pressed by House panel, EPA chief defends waiver decision (02/26/2008) Katherine Boyle, E&ENews PM reporter

U.S. EPA Administrator Stephen Johnson defended his rejection today of California’s waiver request that would have allowed state regulation of motor vehicles’ emissions of greenhouse gases in the wake of the release of agency documents showing that top EPA officials strongly disagreed with him.

Appearing before the House Interior and Environment Subcommittee, Johnson said climate change is not a unique California problem and the state’s petition for a Clean Air Act waiver did not meet the “compelling and extraordinary conditions” required by law.

“Every time another governor, another state representative talks about the need for their state to address global climate change, they’re actually making my very point on the California waiver,” he said.

The Senate Environment and Public Works Committee released documents showing EPA staff members strongly supported granting the waiver.

A presentation prepared for the director of EPA’s Transportation and Air Quality, Margo Oge, urged Johnson to grant the waiver and suggested he would face great outside pressure to deny it.

“If you are asked to deny this waiver, I fear the credibility of the agency that we both love will be irreparably damaged,” the presentation says. “You have to find a way to get this done. If you cannot, you will face a pretty big personal decision about whether you are able to stay in the job under those circumstances.”

It is “obvious” there is “no legal or technical justification for denying” the waiver, says the presentation prepared by Chris Grundler, Oge’s deputy director at the National Vehicle and Fuel Emissions Laboratory in Michigan.

Johnson said he only became aware of the presentation when Congress requested documents on the waiver decision.

“It was never presented to me,” he said.

Rep. Tom Udall (D-N.M.) pressed him, asking if Oge ever raised the issues in the presentation.

But Johnson again denied seeing the presentation, although he didn’t say whether Oge raised those points.

“I received a lot of comments from my professional staff, and they presented me with a wide range of options,” Johnson said. “One of the options was denial. One of the options was to grant the waiver.”

Johnson said he will issue a final decision document on the waiver by the end of the week.

02/26/2008 at 01:30PM

At the hearing, Chairman Feinstein will call for passage of legislation she has sponsored to close a loophole that has allowed oil and gas companies to pay no royalty payments for drilling on the Outer Continental Shelf for leases negotiated in 1998 and 1999. This measure to close the loophole was stripped from the FY2008 Interior Appropriations bill.

Under this provision, the companies who have not renegotiated their existing contracts will have a choice.

• They can keep their existing leases royalty-free if they so choose, but be barred from bidding on new contracts, or
• They can agree to renegotiate these leases in good faith and be able to participate in the bidding for new leases.

Witnesses

• C. Stephen Allred, Assistant Secretary for Lands and Minerals Management, Department of the Interior
• Randall Luthi, Director, Minerals Management Service

02/26/2008 at 10:00AM

Randall Luthi, the controversial chief of the Department of Interior’s Minerals Management Service, will be testifying at a Senate Appropriations subcommittee tomorrow morning. His decision to hold the Chukchi Sea drilling lease sale two weeks ago, the first offshore sale in over a decade, while the Fish & Wildlife Service continues to delay its ruling on the endangerment of polar bears, has garnered protests from government scientists, environmental groups and Congressional Democrats.

Sen. Feinstein, the chair of the subcommittee, released the following statement:

At the hearing, Chairman Feinstein will call for passage of legislation she has sponsored to close a loophole that has allowed oil and gas companies to pay no royalty payments for drilling on the Outer Continental Shelf for leases negotiated in 1998 and 1999. This measure to close the loophole was stripped from the FY2008 Interior Appropriations bill.

Feinstein has been pushing for this legislation at least since 2006, since the loophole in 1998 and 1999 leases issued under the Deep Water Royalty Relief Act of 1995 was discussed in Congressional hearings.

The Environmental and Energy Study Institute (EESI) and the House Energy Efficiency and Renewable Energy Caucus invite you to a briefing addressing the impacts of the President’s FY 2009 budget on energy efficiency and renewable energy (EE/RE) programs, including impacts upon states and low-income consumers. In addition, the urgent need to extend Federal tax incentives for EE/RE will be discussed. Energy efficiency and renewable energy technologies are critical elements of a national energy policy that will meet the nation’s goals of reducing energy imports, moderating energy prices, and improving the economy, national security, the environment and public health.

Panel

• Deborah Estes, Majority Counsel, Senate Energy and Natural Resources Committee
• Scott Sklar, President, The Stella Group; Chair, Sustainable Energy Coalition Steering Committee
• Bill Prindle, Deputy Director, American Council for an Energy Efficient Economy
• Jeff Genzer, General Counsel, National Association of State Energy Officials; Duncan Weinberg, Genzer & Pembroke

02/14/2008 at 02:00PM

Witness

• Stephen Johnson, Administrator, U.S. Environmental Protection Agency

02/14/2008 at 10:00AM

02/14/2008 at 09:30AM

On February 4, 2008, Transportation Secretary Mary Peters released the 2009 fiscal year (FY) budget request for the U.S. Department of Transportation (DOT) to fund construction, maintenance, and operation activities for the nation’s roadways, railways, and air transportation. The proposed $68.2 billion total represents a $2.13 billion decrease from the FY 2008 appropriations bill enacted in December 2007. Moreover, proposed budget rescission measures totaling $3.89 billion would further reduce the budgetary resources available to DOT in FY 2009 to $64.31 billion.

The Administration is again proposing dramatic cuts in federal support for Amtrak. Congress appropriated $1.3 billion for Amtrak in FY 2008 with $850 million going to capital and debt service and $475 million to operating subsidies. The Administration’s budget proposes a total of $800 million, a cut of $525 million or 40 percent. The Administration proposes $525 million for capital and debt service grants and $275 million for “efficiency incentive grants” which would replace direct operating subsidies and give the Secretary of Transportation discretion in how the funds are used.

Other highlights in the Department of Transportation (DOT) budget include:

• Congestion Mitigation and Air Quality Improvement Program (CMAQ) – $1.8 billion. CMAQ supports transportation projects that assist in meeting and maintaining national ambient air quality standards.
• Clean Fuels Grant Program – $51 million to support transit operators in transitioning to cleaner and more efficient buses and fuels, an increase of $2 million from $49 million appropriated in FY 2008.
• Transit Planning – $113.5 million to support the activities of regional planning agencies and states to plan for transit investments, an increase of $6.5 million from $107 million appropriated in FY 2008.