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December 17, 2009  

The Montana Petroleum Report provides information of interest to Montanans. We encourage you to forward this e-letter to your friends.

— Dave Galt, Executive Director  www.montanapetroleum.org


EPA End-run Will ‘Endanger’ Recovery

Red TapeDespite warnings from American companies that new emissions regulations by the U.S. Environmental Protection Agency (EPA) could put them out of business, the agency announced its intention to regulate carbon emissions under the federal Clean Air Act, which provides for government action when there is “endangerment” of public health.

When EPA announced its intention to regulate carbon emissions without congressional approval, many policymakers on both sides of the climate change issue predicted this regulatory hijacking would be a “mess.”  Undeterred, EPA has started wheels turning that would impose hardships on certain industries – many of them businesses that represent the lifeblood of Montana’s economy.

The so-called “endangerment finding” announced by EPA Administrator Lisa Jackson on December 7, paves the way for federal bureaucrats to demand all businesses that emit carbon, even at relatively low levels, install costly equipment or face onerous fines.

Some states, including Montana, recognize the regulatory nightmare this new EPA rule is likely to create and have proposed their own “tailoring” rules on carbon emissions. Unfortunately, even if a state’s intent is to limit new regulations to just those large emitters of carbon, state tailoring regulations still set a precedent that could later ensnare all small businesses, schools and hospitals under carbon emissions rules.

Jackson said EPA “is now authorized and obligated to make reasonable efforts to reduce greenhouse pollutants under the Clean Air Act” – clearly an attempt by appointed regulators to wrest control of the climate change debate from elected representatives.

As Montana and the nation struggle to cope with the current recession, this federal regulatory effort could not come at a worse time. We are thankful that Montana’s unemployment rate remains below the national average, but we need to protect our good jobs in the oil and gas, manufacturing, agriculture and construction industries.

Finally, we hope Ms. Jackson of EPA will explain how and why rural Montana schools, sawmills and hospitals will pay many thousands of dollars to comply with new regulations and more red tape, and why these new rules are more important than keeping Montanans working. We are very concerned that once EPA’s endangerment rules go into effect, the unemployment rate in Montana could easily rise to the national average.

 

The Montana Petroleum Association, Inc. is a voluntary, non-profit trade association, serving a membership of oil and natural gas producers, gathering and pipeline companies, petroleum refiners, service providers and consultants.

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