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ACC Applauds Tennessee Senate Passage of Resolution Encouraging Congress to Postpone EPA Regulation of GHGs from Stationary Sources

Jennifer Scott, (703) 741-5813
March 22, 2010

Postponement Can Help Prevent Further Job Losses as State Faces High Unemployment, $100 Million Budget Shortfall

ARLINGTON, VA (March 22, 2010) – On March 19, the Tennessee Senate passed a resolution (TN SR 200) sponsored by Senator Jack Johnson (R-Franklin) “encouraging the United States Congress to adopt legislation that would postpone the Environmental Protection Agency's effort to regulate greenhouse gas emissions from stationary sources using existing Clean Air Act authority until Congress adopts a balanced approach to address climate and energy supply issues without crippling the economy.” A copy of the resolution was also transmitted to the Speaker and the Clerk of the U.S. House of Representatives, the President and the Secretary of the U.S. Senate, and to each member of Tennessee's Congressional delegation.  Additional information is available at http://w.trendtrack.com/mirrors/wget/tn/www.capitol.tn.gov/Bills/106/Bill/SR0200.pdf.

American Chemistry Council (ACC) President and CEO Cal Dooley issued the following statement:

“We applaud the Tennessee Senate for recognizing the significant additional burdens that stationary source regulation would place on a state that’s already facing high unemployment numbers and a $100 million budget shortfall.  At a time when the U.S. economy is in the midst of one of the most significant recessions in decades and Tennessee and other states are trying mightily to add jobs, regulation of greenhouse gases (GHGs) from industrial facilities, power plants, restaurants, and other places of commerce—also known as ‘stationary sources’—would only hinder recovery and job growth. 

State agencies tasked with implementing the regulations’ permitting requirements simply do not have the resources to deal with the deluge of applications that would flood the system.  Moreover, EPA has provided no guidance on ‘Best Achievable Control Technologies (BACT)’ that could be required under the permit program. The result will be regulatory confusion and a virtual construction freeze across Tennessee and the nation.  Small sources won’t be able to proceed with new facilities or modifications until states adopt local ‘tailoring rules’ and litigation uncertainty is resolved, while large sources will likely have to wait years for their permits. Ironically, EPA’s action could cause the delay or cancellation of many energy efficiency investments and stimulus-related projects—the very projects that the administration wants to expand to help aid recovery and reduce greenhouse gas emissions.

Time is short for Congress to act, since EPA has said it intends to finalize the rule for mobile sources—cars and light trucks—by March 31, leading to regulation of GHGs at as many as six million stationary sources. Congress and the Administration must act immediately to postpone EPA stationary source regulation that could have far-reaching consequences for economic recovery, job creation and energy efficiency.

The chemical industry directly employs 27,509 Tennesseans with an annual payroll of approximately $1,813,000, with other chemical-dependent industries adding another $40 million to that payroll. The average wage of a chemical industry employee in Tennessee is $65,980.00, which is 37 percent higher than other manufacturing wages in the state.”

Learn more about energy and stationary sources of GHGs and visit the Coalition for American Jobs.

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