"King, Heidi R." <Heidi_R._King@omb.eop.gov> 

01/28/2008 04:58 PM

	

To

Ron Evans/RTP/USEPA/US@EPA

cc

Lydia Wegman/RTP/USEPA/US@EPA, "Johansson, Robert"
<Robert_C._Johansson@omb.eop.gov>, Janet Cakir/RTP/USEPA/US@EPA, Karen
Martin/RTP/USEPA/US@EPA

Subject

RE: OMB Position: O3 NAAQS is a Signif Energy Action









Thanks Ron, and in case they find it helpful our Energy EO lead has

offered to meet with anyone who has questions.

Heidi - also love NY (except when it's really really cold!!  I remain a

Californian at heart) 

-----Original Message-----

From: Evans.Ron@epamail.epa.gov [mailto:Evans.Ron@epamail.epa.gov] 

Sent: Monday, January 28, 2008 4:54 PM

To: King, Heidi R.

Cc: Wegman.Lydia@epamail.epa.gov; Johansson, Robert;

Cakir.Janet@epamail.epa.gov; Martin.Karen@epamail.epa.gov

Subject: Re: OMB Position: O3 NAAQS is a Signif Energy Action

The weekend was good, I love NYC.

I have forwarded your e-mail to OGC to review your interpretation of the

energy EO and get their input.   I will let you know what I hear from

them.

Ron Evans

Leader, Air Benefit & Cost Group

HEID/OAQPS/OAR/EPA

Mail Drop C-439-02

919-541-5488

919-541-0839 fax

                                                                        

             "King, Heidi R."                                           

             <Heidi_R._King@o                                           

             mb.eop.gov>                                             To 

                                      Ron Evans/RTP/USEPA/US@EPA, Lydia 

             01/28/2008 03:16         Wegman/RTP/USEPA/US@EPA           

             PM                                                      cc 

                                      "Johansson, Robert"               

                                      <Robert_C._Johansson@omb.eop.gov> 

                                                                Subject 

                                      OMB Position: O3 NAAQS is a       

                                      Signif Energy Action              

                                                                        

                                                                        

                                                                        

                                                                        

                                                                        

                                                                        

Hi Ron,

I hope you had a good weekend.

I wanted to follow up to one of our meetings last week, and confirm that

OMB's opinion is that the O3 NAAQS is a Significant Energy Action.

I understand that EPA's prior position recognized that the setting of a

standard is not a mandate requiring actions from the energy sector;

however the structure of the EO extends the identification of

Significant Energy Actions to those actions "...expected to lead to the

promulgation of a final rule or regulation ..."  and includes other

actions that do not contain direct mandates, such as notices of inquiry.

The potential adverse effects identified by OMB include potential

increase in electricity production costs and also potential changes to

competition in the energy sector, as well as novel legal or policy

issues that emerge in setting standards that may be difficult to attain

for some States.

I reiterate my comment that there is not a requirement to change the

analysis as the result of this designation, but rather EPA should be

prepared to call out elements of the RIA that address potential changes

in electricity production/prices, as well as any assumed or identified

potential competitive effects.  It is not necessary to prepare a

separate document from the RIA, but it might be helpful to assemble

information in a separate appendix or chapter in the cost section (we

can discuss).

I'm happy to discuss further; I suggest that we schedule a follow up

meeting with DoE to follow up to our conversation last week and review

relevant elements of the RIA.  We could do this of course as part of

interagency review of the RIA and preamble language.

Thanks, Ron, let me know if I can help clarify or if we need to set up

time with OMB's lead on this EO.

heidi

Heidi R. King

OMB/OIRA

(202) 395-4551

