[Congressional Record Volume 168, Number 139 (Friday, August 26, 2022)]
[Extensions of Remarks]
[Pages E879-E880]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         BUILD BACK BETTER ACT

                                 ______
                                 

                               speech of

                        HON. FRANK PALLONE, JR.

                             of new jersey

                    in the house of representatives

                        Friday, August 12, 2022

  Mr. PALLONE. Madam Speaker, I rise to offer some additional thoughts 
in support of our historic legislation, the Inflation Reduction Act of 
2022 (IRA or the Act).
  The electric power sector presents unique issues because it is 
evolving rapidly. Renewable and other low-emitting electricity 
generation are rapidly replacing coal-fired generation. The costs of 
the former continue to fall, leaving many of the coal-fired plants that 
remain in operation with thin profit margins.
  The IRA includes numerous provisions and substantial funding designed 
to accelerate this transition to clean energy. Of particular relevance, 
Section 13204 of the IRA creates a new federal tax credit (at Internal 
Revenue Code Section 45V) for production of clean hydrogen, and Section 
13104 extends and increases the federal tax credit (at Internal Revenue 
Code Section 45Q) for carbon oxide capture, also referred to as carbon 
capture, utilization, and storage (CCUS). Congress anticipates that 
while this tax credit will make CCUS more affordable for coal-fired 
electricity generating plants and will allow some to continue to 
operate while reducing their GHG emissions, power companies will also 
continue to choose to retire such plants in favor of cleaner forms of 
generation.
  The IRA also includes provisions that support EPA rulemaking to 
reduce GHG emissions from the electric power sector. Congress 
understands that this rulemaking will have the incidental effect of 
expediting the transition to clean energy because by requiring fossil 
fuel-fired power plants to reduce emissions, it will require additional 
investments by these plants that will not be needed for plants using 
cleaner forms of generation. In particular, Section 60107 establishes 
new CAA Section 135 that requires EPA to account for this transition to 
clean energy in promulgating regulations to reduce GHG emissions. 
Section 60107(a)(1) through (4) provide EPA $68 million to support 
actions--such as consumer-related education and technical assistance to 
State, Tribal, and local governments--to reduce GHG emissions that 
result from domestic electricity generation and use, and Section 
60107(a)(5) provides $1 million for EPA to conduct an assessment of the 
reductions in GHG emissions that will result from changes in domestic 
electricity generation and use anticipated to occur on an annual basis 
through fiscal year 2031. Section 60107(a)(6), as previously noted, 
provides $18 million for EPA to promulgate additional requirements 
under its CAA authorities to ensure reductions in GHG emissions, 
incorporating the assessment under paragraph (5).
  Congress has full confidence that EPA has sufficient expertise to 
make the assessment under Section 60107(a)(5) and conduct the 
rulemakings contemplated under Section 60107 through the authority of 
CAA Section 111 and other CAA provisions. EPA has a long history of 
action in this sector. In fact, EPA initiated rulemaking to control air 
pollutants from the electric power industry shortly after enactment of 
the 1970 CAA Amendments and, in the five decades since, has promulgated 
numerous regulations affecting the industry, under several CAA 
provisions, that are among the most significant in EPA's history. 
Congress considers these activities as clear evidence of EPA's robust 
understanding of the electric power industry, its underlying economics, 
its sources of electricity generation, its infrastructure, its 
mechanisms to maintain reliability, its rate structure, and other 
components. Congress believes the U.S. Supreme Court correctly 
recognized EPA's expertise in the electric power sector in 2011 in 
American Electric Power v. Connecticut and notes the Supreme Court's 
recent opinion in West Virginia v. EPA does not call EPA's expertise 
into question. (American Electric Power v. Connecticut, 564 U.S. 410, 
426, 427, 428 (2011); West Virginia v. EPA, No. 20-1530, Slip Op. at 25 
(2022)).
  The IRA authorizes EPA to make use of the additional funding that 
Section 60107 provides to promulgate regulations for GHGs under 
Sections 111(b) and 111(d) for new and existing industrial sources. 
Section 111 is the single most important tool in EPA's toolkit for 
regulating new and existing industrial sources of GHGs, and Congress 
expects EPA to make increasing use of it. Section 111 authorizes EPA to 
base regulatory requirements on the ``best system of emission reduction 
. . . adequately demonstrated'' (BSER) for controlling air pollutants, 
taking into account, among other things, cost. As previously noted, 
Congress expects that EPA will interpret Section 111 broadly, 
consistent with its meaning since it was enacted in the 1970 CAA 
Amendments, so that EPA will be able to promulgate impactful 
regulations for these sources, including ones that may be innovative, 
as appropriate.
  Congress intends for all of the technologies funded under this Act 
(such as the tax credits for CCUS and clean hydrogen production) to be 
available to EPA to tackle the climate crisis, along with any other 
technologies or systems that EPA finds meet statutory criteria, such as 
those identified in its April 2022 draft White Paper. (Available and 
Emerging Technologies for Reducing Greenhouse Gas Emissions from 
Combustion Turbine Electric Generating Units (Apr. 21, 2022)). While 
the draft White Paper identified methods EPA or States could use to 
reduce GHGs from combustion turbines (which are generally natural-gas 
fired), many of these methods could also apply to steam boiler units 
(which are generally coal-fired) and to other industrial sources. 
Section 111, as enacted, clearly authorizes EPA to adopt any of these 
measures as the BSER--if EPA determines that they meet the applicable 
requirements concerning, for example, cost--and therefore as the basis 
for regulatory requirements for new and existing sources. The Supreme 
Court's decision in West Virginia v. EPA does not preclude those types 
of controls as BSER or as a component of the best system and, in fact, 
recognizes many of them as traditional air pollution control measures. 
The IRA recognizes this extraordinary time of transition in the energy 
sector and the rapid pace of technological change, and we urge EPA, 
where feasible, to base its emissions requirement on both technologies 
that are available now and those that will be available in the near 
term, including because of incentives contained within this Act. This 
approach may allow EPA flexibility to address more fully GHG emissions 
from particular source categories in its rulemaking.
  The tax credits for CCUS and clean hydrogen production included in 
this Act may also figure into CAA Section 111 GHG regulations for new 
and existing industrial sources as well as other CAA requirements, such 
as permitting under Section 165. As noted above, Congress anticipates 
that EPA may consider CCUS or clean hydrogen as candidates for BSER for 
electric generating plants as well as for other fossil fuel-fired 
industrial sources. Further, Congress anticipates that EPA may consider 
the impact of the CCUS and hydrogen production tax credits in lowering 
the costs of those measures. As I noted above, Congress anticipates 
that regulatory requirements to reduce emissions imposed on coal-fired 
electricity generating plants will require additional investments by 
these plants--investments that non-emitting plants will not have to 
make. Such a rulemaking would be clearly authorized under Section 111, 
consistent with its meaning since enactment.
  Congress intends that, for purposes of rules under Section 111 and 
other CAA requirements based on CCUS or clean hydrogen, the cost of 
CCUS or clean hydrogen may be calculated on the assumption that the 
amount of the tax credit is the increased amount available under 
Internal Revenue Code Sections 45Q(h)(1) or 45V(e)(1), respectively, as 
added by this Act.

[[Page E880]]

  Section 60105(g) provides EPA $5 million to provide grants to states 
to adopt and implement GHG and zero-emission standards for mobile 
sources pursuant to Section 177 of the CAA. Congress supports states 
taking actions to address their air pollution and climate needs. An 
important tool that many states have available is the ability to adopt 
California's GHG, zero-emissions vehicle, and criteria pollutant 
emissions standards for mobile sources under Section 177, which they 
may submit to EPA afterwards as part of their state measures. Funding 
available in Section 60105(g) is intended to support states wishing to 
use this tool.
  A necessary predicate for states adopting California's standards 
under Section 177 is that EPA issue a waiver of preemption pursuant to 
CAA Section 209. By making these funds available specifically for 
states to adopt and implement California's GHG and zero emission mobile 
source standards, Congress indicates its approval of EPA's decision to 
grant a waiver to California for such standards where the statutory 
criteria have been met. EPA has done this several times in the past 
including, but not limited to, in 2009 for California's GHG standards 
for new motor vehicles; in 2013 for California's advanced clean car 
standards, including its zero-emission vehicle sales mandate; and in 
2014 and 2016 for California's heavy-duty GHG emission standards. 
California may continue to need such standards to address compelling 
and extraordinary conditions.

  Congress recognizes the reductions in GHG emissions from motor 
vehicles and engines owing to increased engine efficiency, improved 
vehicle design, and the transition to low- and zero-emission vehicles, 
including fuel-cell and battery-powered electric vehicles. EPA's recent 
light-duty vehicle regulations establishing standards for motor 
vehicles and engines for 2023 and later model years identify and 
incentivize these technological developments. (86 Fed. Reg. 74434 (Dec. 
30, 2021)). Congress recognizes EPA's longstanding authority under CAA 
Section 202 to adopt standards that rely on zero emission technologies, 
and Congress expects that future EPA regulations will increasingly rely 
on and incentivize zero-emission vehicles as appropriate. Other 
provisions in the IRA will further support the transition to zero-
emission vehicles including, but not limited to, Section 60101, funds 
to support clean heavy-duty vehicles; Section 60102, funds to reduce 
air pollution and support zero-emissions technology at ports; Section 
60104, funds to support diesel emissions reductions; and Sections 13401 
through 134003, tax credits for clean vehicles.
  The IRA provides additional funding for EPA to carry out provisions 
of the American Innovation and Manufacturing (AIM) Act, which Congress 
expects EPA will use to adopt robust measures to address 
hydrofluorocarbons, which are potent GHGs, and where appropriate, their 
substitutes. Specifically, Section 60109(a)(1) provides $20 million to 
carry out subsections (a) through (i) and subsection (k) of the AIM 
Act. Section 60109(a)(2) provides $3.5 million to deploy new 
implementation and compliance tools to carry out those same subsections 
of the AIM Act, and Section 60109(a)(3) provides $15 million for 
competitive grants for reclaim and innovative destruction technologies 
under those same subsections of the AIM Act. EPA's rulemaking under the 
AIM Act to address hydrofluorocarbons is vital to limiting the climate 
impacts from these potent GHGs and an important tool in helping to 
address the climate crisis. Congress recognizes that addressing 
hydrofluorocarbons, and where appropriate their substitutes, under the 
recently enacted AIM Act may present novel and complex issues that may 
require innovative regulatory approaches, including robust measures to 
ensure compliance with regulatory and statutory requirements. In 
providing this additional funding under Section 60109, Congress intends 
that EPA construe its authority under the AIM Act broadly, consistent 
with the meaning of AIM since its enactment, to help ensure compliance 
so requirements are fully achieved. Promulgating and implementing these 
regulations may be resource-intensive, and this additional funding will 
allow EPA to prioritize those efforts and devote the necessary 
resources to them, including adopting innovative and impactful 
requirements and successfully implementing those regulations to ensure 
that Congressional goals of addressing climate-damaging 
hydrofluorocarbons are achieved. Congress further recognizes that the 
Agency has developed a robust set of tools and worked closely with 
industry to meet these ambitious goals. Previous EPA actions include 
protecting our borders from illegal trade and facilitating transitions 
to innovative alternatives and technologies, many of which have been 
developed and deployed by American companies. This additional funding 
provides further support for the Agency to continue with this important 
work.
  By passing the IRA, Congress is making a critical and historic down 
payment toward a stable climate and shared economic opportunity powered 
by American-made clean energy. The IRA gives us an opportunity to meet 
our science-based climate goals and be a global clean energy leader 
through American innovation, manufacturing, and job creation while 
bolstering policy action and partnerships by federal agencies, states, 
and local governments to reduce GHGs and create a clean future for all.
  The CAA is one of the most powerful and enduring tools available to 
achieve our climate and clean energy goals. Congress recognizes EPA's 
longstanding authority and responsibility to regulate GHGs as air 
pollutants under the CAA, and with the IRA clearly and deliberately 
instructs EPA to use it. As discussed, the IRA combines economic 
incentives to reduce climate pollution with regulatory drivers to spur 
greater reductions under EPA's CAA authorities.
  The IRA also builds on EPA's time-tested responsibility and authority 
under the CAA by making critical amendments to provide EPA with 
important new tools and new funding to protect the public. These 
changes to our nation's clean air law, and the many other historic 
provisions of the IRA, will ensure the promise of the CAA to promote 
the public health, welfare, and the productive capacity of the American 
people is strengthened and continues for years to come.

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