Energy

Monday, March 22, 2010 5:30 PM

Chemical, Steel Lobbies Urge Pre-emption

By Amy Harder, NationalJournal.com

If the climate and energy bill being drafted by the Senate trio does not include language that pre-empts EPA and state regulation of greenhouse gas emissions, then two major industry organizations will not support the bill, their leaders said today.

Cal Dooley, president and CEO of the American Chemistry Council, and Thomas Gibson, president and CEO of the American Iron and Steel Institute, told reporters today in a conference call that the pre-emption language is essential for their support.

The two CEOs are calling on either the administration or Congress to delay EPA regulation of stationary source emissions for two years to give the Senate more time to pass a bill. Dooley warned that EPA regulations would "freeze significant private sector investment" that could help revive the economy.

Dooley and Gibson urged quick action, before the end of next week, when EPA is slated to roll out final emissions regulations for vehicles. By issuing the rules for mobile sources' emissions, EPA opens the door to regulate stationary sources too, they argued. EPA Administrator Lisa Jackson has said that the final rules for stationary sources would be rolled out in April.

It is unclear whether environmental groups would take the opposite stand -- that pre-emption language would be grounds to oppose the bill. But Daniel Weiss, senior fellow and director of climate strategy with the Center for American Progress Action Fund, said that it's not just environmentalists who are wary of pre-emption language. "It's going to be a big concern for a lot of states," Weiss said, referring to California, Massachusetts and others that have already made progress on emissions regulations. "It could be quite controversial for many interests."

Industry groups who have had meetings with Sens. John Kerry, D-Mass., Lindsey Graham, R-S.C., and Joe Lieberman, I/D-Conn., have said the senators indicated to them that the pre-emption language will be part of the bill. Environmental groups, however, have said that has not been decided.

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