The EPA Climate Change Budget For Cap-and-Trade

FY 2011 EPA Budget in Brief

We have concerns about whether EPA will have sufficient funding to manage tens of thousands of new greenhouse gas (GHG) permits for the construction, upgrade or operations of large industrial emitters. The Center does not envy the agency in this task to do Congress' work in formulating a cap-and-trade program without appropriate legislative guidance. We are also concerned about whether 'anybody' will be allowed to hold and trade allowances and offsets. It appears that only large emitters are being allowed to participate in EPA's cap-and-trade program.

EPA plans to catalog major greenhouse gas (GHG) emitters for the first time, implement GHG limits for cars and light-duty trucks, write new GHG limits for other mobile sources such as aircraft, finish permitting rules, and give technology guidance for large industrial emitters.

The $1.1 billion devoted to EPA's clean air and global climate change program -- one of five funding priorities for the agency -- represents about 12 percent of the agency's budget. Of that, the proposal sets aside $169 million to reducing greenhouse gas emissions.

The FY 2011 EPA Budget requests:

$43.5 million more for additional regulatory efforts aimed to reduce GHG emissions.

$25 million to help state air pollution agencies process a potential influx of tens of thousands of new GHG permits for the construction, upgrade or operations of large industrial emitters.

$5 million more for state guidance.

$13.5 million in additional funding for the development and implementation of new emission standards that will reduce GHG emissions from transportation sources for passenger cars, light-duty trucks, and medium duty passenger vehicles.

$4 million for implementing the Mandatory GHG Reporting Rule, to ensure the collection of high quality data.

$2.3 million to support community pilot programs as they develop andimplement air toxics approaches tailored to their local needs.

An additional $1.1 million will be invested to improve children’s health through the delivery of effective asthma management strategies in schools and communities.

GHG Rule Rollout: $20.8 million to support the Greenhouse Gas Reporting Rule. Enable EPA to receive, quality-assure, and verify data submitted electronically
from 10,000-15,000 covered facilities.

Energy Efficiency Coordination/ENERGY STAR: $55.5 million to expand the ENERGY STAR
program across the residential, commercial, and industrial sectors.

CAA Greenhouse Gas (GHG) Permitting: $30 million for developing and deploying the technical capacity needed to address greenhouse gas emissions in permitting large sources as part of their Clean Air Act programs.

GHG Standards for Transportation Sources: $6 million to support the promulgation of GHG standards for passenger cars, light-duty trucks, and medium-duty passenger vehicles.

Carbon Capture and Sequestration: $7.1 million to analyze the applicability of Clean Air Act Authority, and conduct further analyses related to carbon capture and sequestration (CCS) technology.

GHG New Source Performance Standards: $7.5 million to support the assessment, and
potential development, of greenhouse gas limits for several categories of major stationary sources of greenhouse gases through means that are flexible and manageable for businesses.

Green Travel / Conferencing: $5 million to support the Agency’s effort in promoting green travel practices and increasing the use web-based video conferencing to facilitate EPA meetings.

Renewable Fuel Storage: $2 milion to assess the Underground Storage Tank compatibility with alternative fuels.

In addition, in the Goal 2: Clean and Safe Water title, there is a Climate and Clean Energy Challenge that includes $1.1 million to support the Agency's work on geologic sequestration to ensure the integrity of underground drinking water aquifers.

(FY 2011 EPA Budget in Brief, NYT, 2/2/10)