Climate Change

Contact

Jeff Shoaf
Senior Executive Director
Government & Public Affairs
Associated General Contractors of America
2300 Wilson Boulevard, Suite 400
Arlington, VA 22201
USA
Phone: (202) 547-3350
Fax: (703) 837-5407
http://www.agc.org

Support Reasonable Climate Change Policies that Reduce Greenhouse Gas Emissions, but also Maintain the Competitiveness of U.S. Companies in the Global Marketplace

Background:

  • The U.S. Environmental Protection Agency (EPA) is considering whether to use the federal Clean Air Act to regulate greenhouse gas emissions (GHG). In 2008, the EPA released a 600-page advanced notice of proposed rulemaking (ANPR) to "discuss and solicit public input" on how to use the Clean Air Act to control GHG emissions from engines in construction equipment, as well as a broad range of other mobile and stationary sources. The ANPR was backed up by more than 11,450 pages of technical materials, which in turn referred to more than 6,613 pages of core references and scientific studies. During 2009, EPA also finalized a mandatory reporting rule, proposed an endangerment finding for GHGs, and took steps to begin Clean Air Act regulation of these emissions from stationary and mobile sources.
  • During 2009, both houses of Congress also have considered whether to enact legislation to control GHG emissions through a "cap-and-trade" program. In June 2009, the U.S. House passed H.R. 2454, the American Clean Energy and Security Act, by a vote of 219 to 212 (8 Republicans supported the bill, and 44 Democrats voted against it). On September 30, 2009, the Clean Energy Jobs and American Power Act (S. 1733) was introduced in the Senate. The Senate bill takes a more aggressive approach in the short-term than the House-passed bill (H.R. 2454). While elements of the legislation could create jobs by inducing demand for energy efficiency improvements to buildings and alternative energy generation, no one is certain of the true impact on the economy and on the construction industry.

AGC Message:

  • Oppose Regulatory or Legislative Action that Could Halt the Future Construction and the Major Renovation of Buildings Nationwide. Using the federal Clean Air Act to regulate GHGs could halt building construction and renovation. Once the EPA controls a GHG under almost any section of the Act, most buildings in the U.S. that emit that "pollutant" would become subject to costly and time-consuming permitting and construction requirements. Prevention of significant deterioration (PSD) permits are of particular concern: as a general matter, no new or existing "major" stationary sources of GHGs could be built or modified if the construction would increase net emissions, without first undergoing the PSD permitting process and installing best available control technology (BACT) for each pollutant. According to a study commissioned by the business community, more than 1 million commercial buildings emit enough carbon dioxide to be considered new major sources and become regulated.
  • Oppose Regulatory or Legislative Action that Could Jeopardize Funding for Highway and Transportation Projects. Highway and transportation contractors could be impacted by the loss of federal funding for projects if carbon dioxide (CO2) is made a "pollutant" under the federal Clean Air Act. The National Ambient Air Quality Standards (NAAQS) process includes penalties for areas in nonattainment and not in compliance with new standards for CO2 emissions. Penalties include the loss of funding for current and future highway projects.
  • Support Climate Change Policies that Allow Construction to Reduce Emissions. The construction of new buildings and improving our highway and transportation infrastructure will ultimately be the greatest way to reduce U.S. GHG emissions. Construction and renovation is the only way to improve the energy efficiency of our vertical and horizontal infrastructure and should be financed for this result. Regulating GHGs through the federal Clean Air Act would likely "tie the hands" of construction firms and public and private entities trying to reduce those emissions. Any climate change legislation must clearly pre-empt use of the Clean Air Act to regulate GHG emissions, an approach that would stifle economic growth and construction activity.

Additional Resources: