Peggy Hatch has hit the ground running.
Hatch replaced Harold Leggett as the secretary of the Department of Environmental Quality in January. She immediately confronts a sunset period when the department will ask to forgo general funds from the Legislature for next year as a reaction to state budget cuts.
Add to that challenge pending Environmental Protection Agency regulations that will tighten the ozone standard in a state that has already had issues with compliance; then pile on uncertainty over a preliminary ruling that would place greenhouse-gas emissions under the Clean Air Act, despite the absence of defintive limits, a monitoring process or a funding mechanism for such a program. The result is a situation most department heads would not envy.
Nevertheless, Hatch says she’s not on pins and needles. Instead, she’s implementing cost-saving measures within DEQ to prevent more budget slashing and strategizing to implement the new ozone standards while waiting for answers on potential greenhouse-gas regulation.
1. The EPA found earlier this year that greenhouse-gas emissions pose a “public threat.” How will this decision impact Louisiana industry?
It’s going to have a big impact on the regulations we’re going to have to impose. We enforce regulations and put them into permits once they are officially out there. Right now we’re not going to enforce that, but it could potentially impact businesses. More businesses will have to be permitted for these types of gas emissions, but it depends on how it reads when it comes out. These are all suppositions based on when the rule comes out. You might have some industries that might not be able to continue to operate viably if greenhouse-gas regulations go into place and they are affected. For us, it means more inspections, more permits, and more monitoring.
2. DEQ sent a letter stating that the finding opens the door to regulating stationary sources, such as power plants, and creates an undue burden on industry. From DEQ’s perspective, is there anything good about the potential regulations on greenhouse-gas emissions?
Until it is finalized in the federal registry, we’re just guessing at how it will impact the state. There’s a procedure that the EPA follows. They go through Congress, do a technical review and set limits. They haven’t put anything official in place, but we are overseen by the EPA. At the end of the day, what is put in the federal registry becomes final and we will enforce it.
3. Is there a timeline for these regulations to come out?
I don’t know. It’s not like ozone, where they’ve already put out a draft regulation that is going to go down between 60 and 70. They’ve already said by August, they’ll make a decision on what it is going to be. It’s a little further along than greenhouse gases. They’ll typically put out a timeline, but I have not seen one on greenhouse gas.
4. Gov. Bobby Jindal’s administration has come out in opposition to the EPA’s finding. As part of that administration, DEQ is responsible for upholding federal regulations within the state. How do you balance the two?
In the letter we sent, we agreed that it [greenhouse gas] needs to go through the normal regulatory process. If EPA comes out with a regulation we have to implement, we will implement it. But we want it to go through the normal process just [as] ozone did. They do a draft rule, get comments, set a limit. … I guess we could say, “No, take the program back,” but right now we’re just guessing at how it’s going to go. I don’t have anything in front of me that says, “This is what the limits are going to be, this is what you are going to have to enforce or put in your permits.” Once we get to that point, we’ll do what we have to do.
5. Taking into account Baton Rouge’s track record of lagging compliance with EPA standards regarding ozone, what would be the situation here should regulation of greenhouse gases come to pass?
That is a very good question. You have to look globally at greenhouse gases, if that’s possible with other emerging industrial countries like China. We have to get guidance from EPA to find out how we would regulate that, or even how we would measure it. Is it going to be like ozone, where you have severe or moderate nonattainment? I don’t know.
6. When a regulation comes down from EPA, what is the process for implementing it?
When a regulation becomes final, we receive guidance. There would be training with EPA on how we would, as a regulator, go out and permit a facility for greenhouse gases or monitor for greenhouse gases. That has not been determined yet. Ozone is different because we’ve been doing it. We know what’s going on there and we have a game plan in place.
7. So are people in Louisiana industry running scared because of the uncertainty surrounding greenhouse gases?
I think everybody is waiting to see what’s going to happen next. I don’t think they’re running scared. Whatever their preferences, they are sending in a letter of support or nonsupport during the comment period. At the end of the day, if there’s a federal regulation, it will be enforced.
8. If greenhouse-gas regulation does come to pass, what would be DEQ’s method of securing funding to implement it?
We do receive some federal funding. You could always say you are going to raise fees, but is that the right way to go? I’m not sure. I think we really have to sit down and take a hard look at it. Other states in our same industrial makeup are going to have the same issues when it comes to funding this program. We haven’t gotten to that point yet, but funding will be a key issue.
9. DEQ also is entering a sunset period. With all of this hovering in the background, how does that suspension of general funding impact DEQ’s request for funding in the upcoming legislative session?
We can only focus on what’s final and what we’re required to oversee. That’s what we’re doing and that’s enough with budget cuts. We’re looking at efficiency changes and cost-saving measures just to save people’s jobs. That’s not greenhouse gas-related. There’s a lot of work that goes on. Over the past few years, we’ve developed cost saving measures so we can continue to do our job more efficiently. Next year we are not asking for any general funds, so we’ve cut our budget ourselves. We’re just going to continue to do our job.
