[House Hearing, 114 Congress] [From the U.S. Government Publishing Office] REALITY CHECK PART II: THE IMPACT OF EPA'S PROPOSED OZONE STANDARDS ON RURAL AMERICA ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON ENVIRONMENT COMMITTEE ON SCIENCE, SPACE, AND TECHNOLOGY HOUSE OF REPRESENTATIVES ONE HUNDRED FOURTEENTH CONGRESS FIRST SESSION ---------- APRIL 29, 2015 ---------- Serial No. 114-17 ---------- Printed for the use of the Committee on Science, Space, and Technology [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] REALITY CHECK PART II: THE IMPACT OF EPA'S PROPOSED OZONE STANDARDS ON RURAL AMERICA ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON ENVIRONMENT COMMITTEE ON SCIENCE, SPACE, AND TECHNOLOGY HOUSE OF REPRESENTATIVES ONE HUNDRED FOURTEENTH CONGRESS FIRST SESSION __________ APRIL 29, 2015 __________ Serial No. 114-17 __________ Printed for the use of the Committee on Science, Space, and Technology [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Available via the World Wide Web: http://science.house.gov ______ U.S. GOVERNMENT PUBLISHING OFFICE 95-222 PDF WASHINGTON : 2015 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON SCIENCE, SPACE, AND TECHNOLOGY HON. LAMAR S. SMITH, Texas, Chair FRANK D. LUCAS, Oklahoma EDDIE BERNICE JOHNSON, Texas F. JAMES SENSENBRENNER, JR. ZOE LOFGREN, California DANA ROHRABACHER, California DANIEL LIPINSKI, Illinois RANDY NEUGEBAUER, Texas DONNA F. EDWARDS, Maryland MICHAEL T. McCAUL SUZANNE BONAMICI, Oregon STEVEN M. PALAZZO, Mississippi ERIC SWALWELL, California MO BROOKS, Alabama ALAN GRAYSON, Florida RANDY HULTGREN, Illinois AMI BERA, California BILL POSEY, Florida ELIZABETH H. ESTY, Connecticut THOMAS MASSIE, Kentucky MARC A. VEASEY, TEXAS JIM BRIDENSTINE, Oklahoma KATHERINE M. CLARK, Massachusetts RANDY K. WEBER, Texas DON S. BEYER, JR., Virginia BILL JOHNSON, Ohio ED PERLMUTTER, Colorado JOHN R. MOOLENAAR, Michigan PAUL TONKO, New York STEVE KNIGHT, California MARK TAKANO, California BRIAN BABIN, Texas BILL FOSTER, Illinois BRUCE WESTERMAN, Arkansas BARBARA COMSTOCK, Virginia DAN NEWHOUSE, Washington GARY PALMER, Alabama BARRY LOUDERMILK, Georgia ------ Subcommittee on Environment HON. JIM BRIDENSTINE, Oklahoma, Chair F. JAMES SENSENBRENNER, JR SUZANNE BONAMICI, Oregon RANDY NEUGEBAUER, Texas DONNA F. EDWARDS, Maryland RANDY WEBER, Texas ALAN GRAYSON, Florida JOHN MOOLENAAR, Michigan AMI BERA, California BRIAN BABIN, Texas DON S. BEYER, Jr., Virginia BRUCE WESTERMAN, Arkansas EDDIE BERNICE JOHNSON, Texas DAN NEWHOUSE, Washington GARY PALMER, Alabama C O N T E N T S April 29, 2015 Page Witness List..................................................... 2 Hearing Charter.................................................. 3 Opening Statements Statement by Representative Jim Bridenstine, Chairman, Subcommittee on Environment, Committee on Science, Space, and Technology, U.S. House of Representatives...................... 9 Written Statement............................................ 10 Statement by Representative Suzanne Bonamici, Ranking Minority Member, Subcommittee on Enviorment, Committee on Science, Space, and Technology, U.S. House of Representatives........... 11 Written Statement............................................ 13 Witnesses: The Honorable Jim Reese, Secretary and Commissioner of Agriculture, Oklahoma State Board of Agriculture Oral Statement............................................... 16 Written Statement............................................ 19 Ms. Cara Keslar, Monitoring Section Supervisor, Wyoming Department of Environmental Quality, Air Quality Division Oral Statement............................................... 24 Written Statement............................................ 26 Dr. Paul J. Miller, Deputy Director and Chief Scientist, Northeast States for Coordinated Air Use Management Oral Statement............................................... 37 Written Statement............................................ 39 Mr. Kevin Abernathy, Director of Regulatory Affairs, Milk Producers Council; Vice Chair, Dairy Oral Statement............................................... 46 Written Statement............................................ 48 The Honorable Todd Hiett, Commissioner, Oklahoma Corporation Commission Oral Statement............................................... 93 Written Statement............................................ 95 Discussion....................................................... 103 Appendix I: Answers to Post-Hearing Questions The Honorable Jim Reese, Secretary and Commissioner of Agriculture, Oklahoma State Board of Agriculture............... 114 Ms. Cara Keslar, Monitoring Section Supervisor, Wyoming Department of Environmental Quality, Air Quality Division...... 116 Mr. Kevin Abernathy, Director of Regulatory Affairs, Milk Producers Council; Vice Chair, Dairy........................... 120 The Honorable Todd Hiett, Commissioner, Oklahoma Corporation Commission..................................................... 127 Appendix II: Additional Material for the Record Statement submitted by Representative Eddie Bernice Johnson, Ranking Member, Committee on Science, Space, and Technology, U.S. House of Representatives.................................. 132 Documents submitted by Representative Frank Lucus, Committee on Science, Space, and Technology, U.S. House of Representatives.. 133 Documents submitted by Representative Jim Bridenstine, Chairman, Subcommittee on Environment, Committee on Science, Space, and Technology, U.S. House of Representatives...................... 158 Documents submitted Representative Suzanne Bonamici, Ranking Minority Member, Subcommittee on Enviorment, Committee on Science, Space, and Technology, U.S. House of Representatives.. 495 REALITY CHECK PART II: THE IMPACT OF EPA'S PROPOSED OZONE STANDARDS ON RURAL AMERICA ---------- WEDNESDAY, APRIL 29, 2015 House of Representatives, Subcommittee on Environment Committee on Science, Space, and Technology, Washington, D.C. The Subcommittee met, pursuant to call, at 2:37 p.m., in Room 2318 of the Rayburn House Office Building, Hon. Jim Bridenstine [Chairman of the Subcommittee] presiding. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Chairman Bridenstine. The Subcommittee on Environment will come to order. Without objection, the Chair is authorized to declare recess of the Subcommittee at any time. Welcome to today's hearing entitled ``Reality Check Part II: The Impact of EPA's Proposed Ozone Standards on Rural America.'' Without objection, our colleague from California, Mr. Valadao, is authorized to participate in today's hearing. I recognize myself for five minutes for an opening statement. It is Congress' responsibility to provide oversight of the executive branch, and that means we must carefully review the impact and achievability of this proposed regulation. I am deeply concerned lowering the standards at this time will have a negative impact, particularly on rural America. Ozone levels and emissions of volatile organic compounds have significantly decreased over the past few decades. Furthermore, according to EPA's own data, their ``projections show the vast majority of U.S. counties would meet the proposed standards by 2025 just with the rules and programs now in place or under way.'' In other words, ozone levels will continue to decrease without doing anything else. However, it is concerning that the EPA is moving the goalposts and proposing to tighten the standards without first fully implementing the existing 2008 standard. The guidance for state implementation plans was only released earlier this year by the EPA. States have not even been given a chance to comply with the existing standard. Last month, the Full Committee held a hearing to examine this complicated and massive regulation that will impact almost every sector of the American economy and individual in the United States. According to Dr. Allen Lefohn, who testified in last month's hearing, it is his expert opinion that the EPA Administrator is relying solely on one 2009 study of 31 participants in order to scientifically justify the costliest regulation in the history of this country. Just so everyone understands how massive this rule is, a February 2015 analysis by NERA Economic Consulting finds that GDP will be reduced by $1.7 trillion between 2017 and 2040, our economy will have 1.4 million fewer jobs, and households will lose an average of $830 per year. Another troubling issue is one of natural or background ozone. With these low proposed standards, background ozone may become the main contributor to exceedances of the standard all across the United States. States will be held responsible for factors outside their control. According to the Western States Air Resources Council, there are numerous national parks in the western United States with ozone monitors that regularly record concentrations which exceed the proposed range of 65 to 70 parts per billion, and some that even exceed the existing 75 parts-per-billion standard. As this figure shows--you can see up on the screen there--monitored ozone levels at rural sites in the West have stayed relatively flat. It is possible that all 11 of these areas would be considered in nonattainment under this new proposal. This would include Yellowstone National Park. There is no way this was Congress' intent when it passed the Clean Air Act over four decades ago. Two sectors of the economy will be heavily impacted by this rule are agriculture and transportation. These are incredibly vital to my home State of Oklahoma, and I look forward to discussing more in detail with our witnesses. Rural areas, like a lot of my state, will be especially hit hard by the Clean Air Act's transportation conformity requirements. A classification of nonattainment would mean that the Federal Government can withhold Federal highway funds for projects and plans if the individual projects do not meet specific emissions and air quality standards. They're talking about withholding Federal highway funds to my State of Oklahoma. Currently, we're in attainment, and while we're in attainment, we're still reducing our ozone. And now they're going to change the goalposts, move the goalposts, and then they're going to potentially withhold Federal highway funds. Those who bear a regulation's compliance costs may also suffer a decline in their health status, and these increased risks might be greater than the direct benefits of the regulation. Unfortunately, but not surprisingly, the EPA did not include premature deaths and increased mortality caused by the loss of disposable income when considering this proposed rule. Low-income Americans and senior citizens living on fixed incomes may be forced to choose between medications, food, or paying for heat and electricity. This is a continuation of this Administration's ``war on the poor,'' to go along with the Clean Power Plan and other existing and proposed EPA regulations. Supporters of the EPA's agenda will say opposition amounts to opposing clean air. This could not be further from the truth. My home state is in attainment, and has been for years, and even still, efforts are being made to further reduce ozone and other emissions. I am extremely proud of the work done by our state and local leaders. Even with their efforts, a new rule would plunge many areas into nonattainment. This is all the more reason why any proposed rule should not be decided in a hasty and hurried manner, especially since the impact of this rule will be widespread and affect every American. I want to thank each of the witnesses for coming this afternoon and I look forward to hearing from you. [The prepared statement of Chairman Bridenstine follows:] Prepared Statement of Subcommittee on Environment Chairman Jim Bridenstine Good afternoon and welcome to this afternoon's hearing entitled: ``Reality Check Part II: The Impact of EPA's Proposed Ozone Standards on Rural America'' It is Congress' responsibility to provide oversight of the executive branch, and that means we must carefully review the impact and achievability of this proposed regulation. I am deeply concerned lowering the standards at this time will have a negative impact, particularly on rural America. Ozone levels and emissions of volatile organic compounds have significantly decreased over the past few decades. Furthermore, according to EPA's own data, their ``projections show the vast majority of U.S. counties would meet the proposed standards by 2025 just with the rules and programs now in place or under way.'' In other words, ozone levels will continue decreasing without doing anything else. However, it is concerning that the EPA is moving the goalposts and proposing to tighten the standards without first fully implementing the existing 2008 standard. The guidance for state implementation plans was only released earlier this year by the EPA. States have not even been given a chance to comply with the existing standard. Last month, the Full Committee held a hearing to examine this complicated and massive regulation that will impact almost every sector and individual in the United States. According to Dr. Allen Lefohn, who testified at last month's hearing, it is his expert opinion that the EPA Administrator is relying solely on one 2009 study of 31 participants in order to scientifically justify the costliest regulation in the history of this country. Just so everyone understands how massive this rule is, a February 2015 analysis by NERA Economic Consulting finds that GDP will be reduced by $1.7 trillion between 2017 and 2040, our economy will have 1.4 million less jobs, and households will lose an average of $830 per year. Another troubling issue is one of natural or background ozone. With these low proposed standards, background ozone may become the main contributor to exceedances of the standard all across the United States. States will be held responsible for factors outside of their control. According to the Western States Air Resources Council, there are numerous national parks in the western United States with ozone monitors that regularly record concentrations which exceed the proposed range of 65-70 parts per billion, and some that even exceed the existing 75 ppb standard. As this figure shows (FIGURE 1), monitored ozone levels at rural sites in the west have stayed relatively flat. It is possible that all 11 of these areas would be considered in non- attainment under this new proposal. This would include Yellowstone National Park! There is no way this was Congress' intent when it passed the Clean Air Act over four decades ago. Two sectors of the economy that will be heavily impacted by this rule are agriculture and transportation. These are incredibly vital to my home state of Oklahoma, and I look forward to discussing more in detail with our witnesses. Rural areas, like a lot of my state, will be especially hit hard by the Clean Air Act's transportation conformity requirements. A classification of non-attainment would mean that the federal government can withhold federal highway funds for projects and plans if the individual projects do not meet specific emissions and air quality standards. Those who bear a regulation's compliance costs may also suffer a decline in their health status, and these increased risks might be greater than the direct benefits of the regulation. Unfortunately, but not surprisingly, the EPA did not include premature deaths and increased mortality caused by the loss of disposable income when considering this proposed rule. Low-income Americans and senior citizens living on fixed incomes may be forced to choose between medications, food, or paying for heat and electricity. This is a continuation of this administration's ``war on the poor,'' to go along with the Clean Power Plan and other existing and proposed EPA regulations. Supporters of the EPA's agenda will say opposition amounts to opposing clean air. This could not be farther from the truth. My home state is in attainment, and has been for years, and even still, efforts are being made to further reduce ozone and other emissions. I am extremely proud of the work done by our state and local leaders. Even with their efforts, a new rule would plunge many areas into nonattainment. This is all the more reason why any proposed rule should not be decided in a hasty and hurried manner, especially since the impact of this rule will be widespread and affect every American. I want to thank each of the witnesses for coming this afternoon and I look forward to hearing from you. Chairman Bridenstine. I now recognize the Ranking Member, the gentlewoman from Oregon, my friend, Suzanne Bonamici, for an opening statement. Ms. Bonamici. Thank you very much, Mr. Chairman, and thank you to all of our witnesses for being here today to discuss the EPA's proposal to lower the current ozone standard to somewhere in the range of 65 to 70 parts per billion. I do want to apologize in advance; I'm going to need to step out of some point for a meeting. I thought I had things perfectly timed and then they called votes and we're getting a late start, so my apologies. It does not indicate a lack of interest in this important issue. At a hearing last month on this very topic, one of the witnesses before the Committee, Dr. Mary Rice, stated that, ``the scientific evidence available seven years ago . . . has been supplemented by an even greater understanding of the health effects of ozone exposure, including greater exacerbations of respiratory disease in infants and children, worse lung function in healthy adults and those with lung disease, . . . and increased mortality in adults.'' In addition to the adverse public health effects of ozone, we'll also hear today about how high levels of ozone negatively affect vegetation and ecosystems. For example, more than 40 years of research shows that long-term ozone exposure results in decreased forest productivity and diminished crop yields. Representing a state where agriculture is a critical economic driver, I take very seriously the negative effects of ozone on forest and crops. Specifically, an analysis by the EPA states that high levels of ozone may reduce the value of a whole tree such as Christmas trees. Now, Oregon is the number one producer of Christmas trees in the Nation. All in all, agricultural production accounts for over $5 billion towards Oregon's economy. Furthermore, the Clean Air Act, as passed by Congress, explicitly prohibits EPA from considering cost when setting at ozone standard. Congress purposely put the health and well- being of Americans first. Now more than ever the American people need a strong EPA to protect their right to clean air and water. Some will argue today that implementing a lower ozone standard is not worth it, that it will kill jobs and the economy. Now, there is much more evidence showing that on balance, jobs are created and the economy expands following the passage of major environmental reforms. For example, in a report to Congress on the cost and benefit of Federal regulations, OMB estimated that major rules promulgated by the EPA between 2003 and 2013 in that decade had benefits between $165 billion and $850 billion compared to costs of $38 billion to $46 billion. Such a significant return on investment should prove the obvious, that when the environment is healthy, the economy is healthy. Let me be clear. I'm sensitive to the concerns we'll likely hear today. In fact, my home State of Oregon, we recognize the challenges associated with implementing a more stringent standard. Wildfires and the long-range shifting of ozone from Asia will need to be addressed if we're to achieve a lower standard. That said, comments submitted by my home State indicate Oregon's support for the EPA's proposal. A letter from David Collier, the Air Quality Manager at the Oregon Department of Environmental Quality, our DEQ, states that ``Oregon welcomes EPA's proposal to lower the ozone NAAQS based on advice provided by the Clean Air Act Science Advisory Committee in order to provide adequate protection to human health and welfare.'' Although significant progress has been made in the past 40 years, it is our job to build upon this legacy and ensure that we continue to improve the quality of our air. A strong economy and help the environment are not mutually exclusive. We can have both. The Clean Air Science Advisory Committee recommended in 2008 lowering the ozone standard to between 60 to 70 parts per billion. They disagreed with the standards set previously of 75 parts per billion, stating it was not sufficiently protective of public health. We should listen to our scientists and our public health professionals and set a standard that is based on the best available science. I'm confident in the ingenuity of Americans to address these challenges. We can and must do better for current and future generations. Thank you very much, Mr. Chairman. Again, thank you to our witnesses for being here this afternoon. I look forward to your testimony, and I yield back the balance of my time. [The prepared statement of Ms. Bonamici follows:] Prepared Statement of Subcommittee on Oversight Minority Ranking Member Suzanne Bonamici Thank you, Mr. Chairman, and thank you to our witnesses for being here today to discuss the EPA's proposal to lower the current ozone standard to somewhere in the range of 65 to 70 parts per billion. At a hearing last month on this very topic one of the witnesses before the Committee, Dr. Mary Rice, stated that ``the [scientific] evidence available seven years ago . . . has been supplemented by an even greater understanding of the health effects of ozone exposure, including greater exacerbation of respiratory disease in infants and children, worse lung function in healthy adults and those with lung disease . . . and increased mortality in adults.'' In addition to the adverse public health effects of ozone, we will also hear today about how high levels of ozone negatively affect vegetation and ecosystems. For example, more than 40 years of research shows that long-term ozone exposure results in decreased forest productivity and diminished crop yields. Representing a state where agriculture is a critical economic driver, I take very seriously the negative effects of ozone on forests and crops. Specifically, an analysis by the EPA states that high levels of ozone may ``reduce the value of a whole tree such as Christmas trees.'' This is important to my constituents because Oregon is the number one producer of Christmas trees in the nation. All in all, agricultural production accounts for over $5 billion dollars toward Oregon's economy. Furthermore, the Clean Air Act, as passed by Congress, explicitly prohibits the EPA from considering cost when setting an ozone standard. Congress purposefully put the health and wellbeing of Americans first. Now, more than ever, the American people need a strong EPA to protect their right to clean air and water. Some will likely argue today that implementing a lower ozone standard is not worth it--that it will kill jobs and the economy. There is much more evidence showing that on balance, jobs are created and the economy expands following the passage of major environmental reforms. For example, in a report to Congress on the costs and benefits of federal regulations, OMB estimated that major rules promulgated by the EPA between 2003 and 2013 had benefits between $165 billion and $850 billion, compared to costs of just $38 billion to $46 billion. Such a significant return on investment should prove the obvious: that when the environment is healthy, the economy is healthy. Let me be clear, I am sensitive to the concerns we will likely hear today. In fact, in my home state of Oregon we recognize the challenges associated with implementing a more stringent standard. Wildfires and the long-range shifting of ozone from Asia will need to be addressed if we are to achieve a lower standard. That said, comments submitted by my home state indicate Oregon's support for the EPA's proposal. Specifically, a letter from David Collier, the Air Quality Manager at the Oregon Department of Environmental Quality states that ``Oregon welcomes EPA's proposal to lower the ozone NAAQS [pronounced NACKS], based on advice provided by the Clean Air Act Science Advisory Committee, in order to provide the adequate protection to human health and welfare.'' Although significant progress has been made in the past 40 years, it is our job to build upon this legacy and ensure that we continue to improve the quality of our air. A strong economy and a healthy environment are not mutually exclusive. We can have both. The Clean Air Scientific Advisory Committee recommended lowering the ozone standard to between 60 and 70 parts per billion in 2008. They disagreed with the standard set by the Bush Administration of 75 parts per billion, stating it was not ``sufficiently protective of public health.'' We should listen to our scientists and our public health professionals and set a standard that is based on the best available science. I am confident in the ingenuity of Americans to address these challenges. We can and must do better for current and future generations. Thank you, Mr. Chairman, and again thank you to our witnesses for being here this afternoon. I yield back the balance of my time. Chairman Bridenstine. I would like to thank the Ranking Member for her opening statements. We'll now introduce the witnesses. I will yield to the gentleman from Oklahoma, Mr. Lucas, to introduce our first witness, the Hon. Jim Reese, Secretary and Commissioner of Agriculture for the Oklahoma State Board of Agriculture. Mr. Lucas. Thank you, Mr. Chairman. I appreciate the opportunity to introduce my old colleague from my state legislative days. The Secretary acts as Governor Fallin's Chief Advisor on Policy Development and Implementation related to agriculture, food, and forestry issues. Reese grew up on a wheat and dairy farm--you never mentioned that in the past, Jim is still a wheat farmer near Nardin, Oklahoma, to this very day, a fellow who has a lifetime of experiences in dealing with the issues that we're talking about here. He served in the Oklahoma House of Representatives from 1987 to 2001. After that, he was Executive Director of the USDA Farm Service Agency in Oklahoma, a bachelor's degree from Oklahoma State University in engineering technology, a fellow who lives it, does it, understands it, and I appreciate that, and it's a pleasure to have him here today, my old mentor from legislative days. And, Mr. Chairman, if you would indulge me for one further moment, without objection, I'd like to introduce the following ten documents into the record, including comments from the California Cotton Ginners and Growers Association, the California Farm Bureau Federation, the Georgia Farm Bureau, the Iowa Farm Bureau, the Kansas Farm Bureau, the Michigan Farm Bureau, Pennsylvania Farm Bureau, South Dakota Farm Bureau, and the Texas Farm Bureau. And I'd also like to submit comments from Mr. Howard Pearl, who's a small business and farm operator in New Hampshire who runs Pearl & Sons Farm, LLC. As a former Chairman of the House Agriculture Committee, I am very sensitive to what's going on in this area and would note if nothing else perhaps we should have finished implementing the 2008 standards before we moved on to something else. With that, Mr. Chairman, without objection, I'd like to submit these letters to the Committee. Chairman Bridenstine. Without objection, they will be included in the record. [The appears in Appendix II] Chairman Bridenstine. Does the gentleman yield back? Mr. Lucas. The gentleman yields back. Chairman Bridenstine. Roger that. The gentleman yields back. Our next witness is Ms. Cara Keslar, Monitoring Section Supervisor for the Wyoming Department of Environmental Quality's Air Quality Division. Ms. Keslar has 18 years of experience in the environmental field, including 13 years in the Air Quality Division. Ms. Keslar has a bachelor's degree in chemical engineering from Clarkson University and a master's degree in environmental and occupational health from the University of Illinois at Chicago. Our next witness is Dr. Paul Miller, Deputy Director and Chief Scientist for Northeast States for Coordinated Air Use Management, NESCAUM, a nonprofit association providing scientific, technical, analytical, and policy support to the air quality and climate programs of eight Northeast States. Before joining NESCAUM, Dr. Miller was a senior fellow at Princeton University's Center for Energy and Environmental Studies and a National Research Council Associate at the Joint Institute for Laboratory Astrophysics at the University of Colorado at Boulder. Dr. Miller has a Ph.D. in chemical physics from Yale University and a J.D. from Stanford University. I will now yield to the gentleman from California, Mr. Valadao, to introduce our next witness, Mr. Kevin Abernethy, the Director of Regulatory Affairs for the Milk Producers Council, and the Vice Chair of Dairy CARES. Mr. Valadao. Thank you, Chairman. I appreciate the opportunity to come and spent some time in your committee and introduce a personal friend. As many of you know, I am a dairy farmer from Hanford, California, and I've watched the industry struggle for many years trying to survive under these regulations. And the frustrating thing is when you see how the impact has really changed the dairy world. It's forced all the smallest of our producers, those who are just starting out, those who are trying to get into the business, it's basically prevented them from actually ever being successful because of the cost. It's typically the larger farmers who've been around a lot longer that have the ability and the financial ability to actually hire the engineers, hire the consultants, and hire all the crews they need just to survive. But Kevin Abernathy I've known for long time as my time at California Dairy Campaign. I was actually the Vice Chairman. And through that whole process of watching all these regulations start to be implemented, Kevin has always been someone that's spent a lot of time not just in an office pushing papers but actually out in the field working with the dairymen, looking for ways to make sure that we do our job for the environment but at the same time do it in a way that actually makes sense, that is actually doing what it's supposed to do on the environmental side but also have the ability that's feasible that a business owner can do it, and to make sure that the regulators understand what they're doing. He's on the USDA Agriculture Air Quality Task Force, San Joaquin Valley Air Pollution Control Districts, Dairy Producer Advisory Group. He's on the Central California Ozone Policy Committee, California Department of Food and Ag. He's got a few committees that he sits on as well, and obviously, like you mentioned earlier, Chairman, the Dairy Community Alliance for Responsible Environmental Stewardship. His background, animal husbandry over at Fresno State, so a good local Central California school, and he's been an expert that we've always leaned on to make sure that we have great representation in the dairy business so that our farmers have a fair shot at survival in producing food for our nation. So again, thank you, Kevin, for being here, and thank you, Chairman. And I yield back. Chairman Bridenstine. I'd like to thank the gentleman from California for his great introduction. Our final witness is Hon. Todd Hiett, Commissioner of the Oklahoma Corporation Commission. I know Todd personally. He's a friend of mine from the great State of Oklahoma, born in Kellyville, Oklahoma, graduate of Oklahoma State University, first elected to the Oklahoma House of Representatives at age 27, served six terms, including his final term as the first Republican Speaker of the House in Oklahoma in eight decades. After eight years in the private sector experiencing the hardships put on business by excessive regulation, Todd was elected to be one of three Commissioners of the Oklahoma Corporation Commission, which is responsible for regulating fuel, oil and gas, public utilities, and transportation industries. He and his family still live on a ranch south of Kellyville near my hometown of Tulsa, Oklahoma. In order to allow time for discussion, please limit your testimony to five minutes each. Your entire written statement will be made a part of the record. I'd like to now recognize Secretary Reese for five minutes to present his testimony. Mr. Reese, you are recognized. Mr. Reese, could you turn on your mike, please? There's a button there. Mr. Reese. To talk? Okay. I'm sorry. TESTIMONY OF THE HONORABLE JIM REESE, SECRETARY AND COMMISSIONER OF AGRICULTURE, OKLAHOMA STATE BOARD OF AGRICULTURE Mr. Reese. Good afternoon, Mr. Chairman and Members of the Committee. I've presented my written testimony so I will try to summarize quickly. My visual presentation--my only visual presentation is a picture of my farm near Nardin, Oklahoma. My daughter took that on Easter Sunday of last year and it just happened to cover the beautiful sky in the background. There are skies all over Oklahoma and the rest of America that look exactly like this, but there are some things we cannot control. We cannot control the heat in the summer of 2011. Oklahoma had the highest average maximum temperature during the three summer months of any state since records began in 1895 at 100.4 degrees. It was also our third driest in history with four inches of rain over those three months. We had numerous exceedances of 75 parts per billion that summer because of the heat and drought and circumstances that were beyond Oklahoma's control. Despite that beautiful sky on the screen, it may be very difficult for Oklahoma to meet the ozone standard of 65 to 70 parts per billion. In fact, that picture is in a county that EPA currently estimates to run above the 65 to 70 parts per billion average standard. The Clean Air Act directs the Administrator to set a standard based on criteria requisite to protect the public health. Biology teaches us the most important ingredients to support human life are air, water, and food. One of those three most important ingredients are to protect public health is food, not only public health but human life. Many may think food just appears in grocery stores but it does not. Providing the safest, most affordable food supply in the world requires a great deal of commerce that both cleans the air and also contaminates the air. Agriculture and forestry on one hand are among the greatest assets in improving air quality in that growing plants consume carbon out of the air. Growing agricultural crops consume carbon from the air. Those crops are fed to livestock, which then is turned into protein and delivers to your grocery stores and to your homes. But it does require fertilizer inputs, transportation inputs, diesel fuel inputs, food processing inputs, food shipment inputs, until finally it is on the plates of Americans supplying the third-most important necessary ingredient to sustain human life and public health. This proposed standard means greater cost to our producers, retrofitting engines, increased energy costs for dairy barns, poultry houses, possibly curtailing pesticide applications and fertilizer applications. One of the most critical issues in agriculture today is timing, planting, harvesting, applications of fertilizer and pesticides. These critical decisions cannot be made timely with EPA prescribing the formula. American agriculture has never been more efficient but it must continue to grow more efficient if it is going to continue to feed a growing world. Agricultural engines are more efficient and more air friendly than ever before. We are making great strides and great progress cooperatively. Much has been said about the prevalence of asthma and its sensitivity to ozone. In Oklahoma, we have an invasive nuisance that is also a major health risk, and that is eastern redcedar. Pollen from eastern redcedar causes itchy eyes, runny nose, congestion, migraines, and many more. The solution to the health problems associated with redcedar is effective land management, which does include prescribed burning, prescribed burning that would be prevented in Oklahoma counties if they are in nonattainment status. Now, I would suggest--I would not suggest that we rate one health concern over another, but many times a solution to one health concern aggravates another. When does government finally decide that it cannot know all of the answers? Our ozone levels are moving in the right direction and they have for the past 20 years. Prescribed burning is a technique that prevents wildfires. It manages smoke contributions to the atmosphere. It saves lives and property. It improves grassland and forest health. All of these things are beneficial to the health of the environment, the economy, and human health. Being in nonattainment because of these EPA proposed rules can prohibit these beneficial aspects of prescribed fire. Americans working together these past 20 years have resulted in lower ozone levels. I'm grateful for the efforts of EPA and of Americans who have invested in protecting and improving our precious air and water resources. However, at some point we have to stop and consider competing interests in protecting human health, and protecting natural resources, and in protecting our food supply and our economy that are all equally important. Thank you, Mr. Chairman and committee members, for the opportunity to provide this testimony. [The prepared statement of Mr. Reese follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Chairman Bridenstine. Thank you, Mr. Reese. I now recognize Ms. Keslar for five minutes to present her testimony. TESTIMONY OF MS. CARA KESLAR, MONITORING SECTION SUPERVISOR, WYOMING DEPARTMENT OF ENVIRONMENTAL QUALITY, AIR QUALITY DIVISION Ms. Keslar. Thank you, Mr. Chairman. Lower ozone NAAQS with design values influenced heavily by background ozone leaves Wyoming and Intermountain West States faced with new challenges in implementation. This testimony will focus on the implementation issues with the proposed ozone NAAQS that are of particular concern to rural Intermountain West States like Wyoming and specifically the effects of background on rural areas and the available policies for addressing nonattainment issues, in particular, exceptional events. At ground level, ozone is formed by complex reactions of pollutants in the atmosphere. Because of this, every geographical area has a unique mix of sources and meteorology that can govern its formation. Additionally, at high elevations like in Wyoming, ozone can be injected into our atmosphere from the ozone layer. This is called stratospheric ozone intrusion. This makes ozone exceedingly complex to understand and control. So far, EPA has focused on urban areas with highest ozone concentrations to protect public health and their tools and planning policies reflect that. As the ozone standard is lowered, rural and mountainous areas will also have difficulty attaining and implementing the ozone NAAQS but have fundamentally different issues to contend with such as more transported and natural pollution. In the NAAQS proposal, background ozone refers to components of international transport, transport into rural areas, and ozone from natural sources, including wildfire and stratospheric intrusion. This can account for a significant portion of measured ozone in the Intermountain West and is usually beyond a state's ability to control. In its proposal, EPA suggests that these background contributions can be addressed by existing regulatory relief mechanisms, including the exceptional event rule. While we appreciate the efforts to retain these mechanisms in their current state they require extensive resources to document uncontrollable pollution. It is imperative that EPA make improvements to these mechanisms and streamline the demonstration and approval process so states and EPA resources are properly allocated to reducing emissions rather than performing paperwork exercises. The DEQ has extensive experience in implementation of the exceptional event rule since its promulgation in 2007. We have produced several demonstrations showing that fire, high wind, and stratospheric intrusion have clearly caused exceedances of the NAAQS for PM 10, PM 2.5, and ozone. Specifically for ozone we've submitted five demonstrations to EPA Region 8 for stratospheric intrusion and we're the only agency and the Nation that has received a concurrence on intrusion event. Based on this experience, each stratospheric intrusion demonstration takes between four and eight months to produce. The effort to produce those demonstrations use internal staff expertise, as well as assistance from federal, state, and academic staff focused on researching and diagnosing these intrusion events. While we've not produced a demonstration to show ozone exceedances caused by wildfire, we're familiar with those demonstrations that EPA has concurred with. And to prepare comparable demonstration, it requires 15 months and contractor assistance of $150,000 per event. In order for states to implement the exceptional events rule in the practical fashion, EPA must update and streamline the process. A key to this is developing workable technical tools to help states analyze these exceptional events. The EPA and other governmental agencies already have several online systems to provide data and analyses. There should be a concerted effort by EPA to consolidate these tools into a workable system to provide the necessary technical products. Concurrently, EPA needs to follow through on their plans to provide clear requirements to demonstrate an exceptional event and produce very specific guidance for wildfire and stratospheric intrusion demonstrations for ozone. Furthermore, EPA needs to commit well-defined timelines for the region's review and decision on exceptional event. At this time, there are no timelines for EPA's review and decision. This leaves air agencies with uncertainty when making regulatory decisions that can be affected by the inclusion or exclusion of exceptional data. We recognize that EPA's responsibility to protect public health is the driving cause of lowering the ozone standard. However, overburdening state resources with administrative exercises will not help to achieve this objective. In addition to protecting public health, it is also the EPA's responsibility as the promulgators of this rule to provide states with the tools and guidance necessary to implement its standards and commit to doing so in a timely fashion. Therefore, EPA needs to devote the necessary resources to this issue to resolve concerns of rural and Intermountain West States. Thank you. [The prepared statement of Ms. Keslar follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Chairman Bridenstine. Thank you for your testimony. I now recognize Dr. Miller for five minutes to present his testimony. TESTIMONY OF DR. PAUL J. MILLER, DEPUTY DIRECTOR AND CHIEF SCIENTIST, NORTHEAST STATES FOR COORDINATED AIR USE MANAGEMENT Dr. Miller. Good afternoon. My name is Paul Miller and I am Deputy Director and Chief Scientist of the Northeast States for Coordinated Air Use Management, or NESCAUM. I thank Mr. Chairman, Ms. Ranking Member, and the Members of the Subcommittee for providing NESCAUM with the opportunity to provide these comments today on U.S. EPA's proposed ozone standards. NESCAUM is a regional association of state air pollution control agencies representing Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont. NESCAUM provides policy and technical support for our state member agencies in furtherance of their air quality and climate programs. Our member state agencies have the primary responsibility for developing strategies that will attain and maintain current and potentially revised ozone standards in their states and in downwind areas affected by transport. My testimony today reflects the majority views of NESCAUM as a state membership organization. Individual NESCAUM member states do hold separate views regarding issues specific to those states' circumstances, which may differ from NESCAUM states' majority consensus. Over its 45-year history, the Clean Air Act has saved hundreds of thousands of lives and generated trillions of dollars in health and welfare benefits for our nation. Compliance with national ambient air quality standards have consistently proven less costly and more beneficial than either its critics or supporters predicted. Within the NESCAUM region, states have successfully met the challenge of reducing air pollution over the years while their economies, populations, and energy use have grown. While air quality has improved markedly under the existing Clean Air Act framework, the science clearly demonstrates that adverse impacts continue to occur and more protective ozone standards are needed. NESCAUM supports a health-based ozone standard within the range recommended by the Clean Air Act Scientific Advisory Committee, or CASAC, of .060 to 0.070 parts per million, eight- hour average. Ground-level ozone is a respiratory irritant that adversely affects both people with respiratory disease and healthy children and adults. It can cause premature death. The science was sufficiently strong in 2007 to justify a more protective ozone health standard, but the standard set by EPA at that time fell short of what was needed. The science remained sufficiently strong in 2010 when EPA tried to reconsider its earlier vision but ultimately could not do so. It is now 2015 and the science has only become stronger. By extension, the current ozone NAAQS of 0.075 parts per million remains inadequate. Retaining this as a standard should not be an option. As today's hearing encompasses impacts on rural and agricultural sectors of America, I would like to focus the remainder of my comments on EPA's proposal for the revised secondary standard. The main focus of EPA's proposal is to provide increased protection against vegetation-related impacts. Ozone is the most important air pollutant affecting economically valuable agricultural crops and other vegetation in North America and elsewhere. Long-term exposure to ground- level ozone above natural background concentrations results in diminished crop yields and in decreased forest productivity. In the United States, studies of estimated crop losses due to ozone damage are in the billions of dollars annually. In light of the existing science, NESCAUM supports a secondary ozone standard of the W126 index form, which is intended to better reflect biologically relevant ozone levels. EPA is proposing to revise the secondary ozone NAAQS to a level within the range of 13 to 17 parts per million hours average over three years, but setting the standard within the range of an eight-hour average, .065 to .070, which it asserts would provide equivalent protection. We believe that the W126 basis of EPA's proposed secondary NAAQS is at and above the CASAC recommended range. As a result, EPA's proposed level is not entirely consistent with the existing science. In achieving more protective ozone standards, mobile sources remain an important emissions sector. EPA needs to be forward-looking in addressing these as the full benefits of their emissions reductions take time to be realized due to fleet turnover rates and other factors. Strategies to reduce ozone forming nitrogen oxides or NOx from mobile sources such as lower emission standards for heavy-duty on-road diesel vehicles, updated federal aftermarket catalytic converter policies, diesel inspection and maintenance programs, and idling reduction measures are significant opportunities for lowering ozone pollution going forward. In sum, NESCAUM firmly believes that science must drive the ozone standards. EPA's most recent proposal generally better aligns with the long-standing science but may not adequately reflect levels needed to protect farms and forests. I thank you for your attention and I'm happy to answer any questions you may have. [The prepared statement of Dr. Miller follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Chairman Bridenstine. Thank you, Dr. Miller. I now recognize Mr. Abernathy for five minutes to present his testimony. TESTIMONY OF MR. KEVIN ABERNATHY, DIRECTOR OF REGULATORY AFFAIRS, MILK PRODUCERS COUNCIL; VICE CHAIR, DAIRY CARES Mr. Abernathy. Thank you, Mr. Chairman, distinguished Members of the Committee. I appreciate you holding this hearing today to discuss the EPA's proposed new standards on ozone. I've lived in the San Joaquin Valley of California all of my life, and as you might already know, there's three things that make unique--that are very unique to California. We are the Nation's agricultural powerhouse. We're in the middle of a terrible drought and we remain one of the most challenging air basins in the Nation for meeting air quality standards. While these things are true, there's much more to our story. Valley agriculture, business, and regulators have worked together to dramatically improve air quality while producing more crops in hopes of a stronger economy, and we can continue this if we act wisely, but we have to face the harsh reality. That reality is as the air gets cleaner, achieving further incremental improvements becomes technologically and economically challenging. As we move toward near background levels, it becomes almost impossible. A change in strategy is certainly needed. As the current act monitors air quality agencies and bureaucracy and forcing them to implement multiple redundant standards for criteria pollutants, this wastes time and money. They're held accountable for these standards without regard to whether they're achievable. They're asked to literally do the impossible, control pollution and in some cases from sources they don't regulate, achieve reductions from technologies that don't exist today. California dairy families produce nearly a fifth of the country's milk generating $63 billion in the economy, over 443,000 jobs, and agricultural production and processing accounts for 37.8 percent of the regional employment. It's to be said that for every dollar that comes onto the dairy farm, $8 are stimulated in the local community. With the Valley's unique topography, temperature inversions, we face very tough challenges. With 10 times less pollution per square mile than Los Angeles with our stagnant air conditions, we struggle to meet ever-tightening air quality standards with pollution that's not only imported from the San Francisco Bay area but also from countries as far away as Asia. Slide one, please. [Slide.] We are very, very proud of this slide. It shows that we have had a 97 percent reduction in the 1-hour ozone standard with over 600 rules that have been implemented in the San Joaquin Valley, such as Rule 4574 stationary engines, Rule 4702 on stationary engines, 4570 for VOCs from CAFOs. 4570 is an interesting note from the standpoint that it's the San Joaquin Valley's most expensive individual rule ever passed on Central Valley dairy families. All told, businesses have spent more than 40 billion in complying with these rules. Slide #2. [Slide.] We've been committed. We made the comment that we would--we wanted rules that were based on sound science and guided by sound science that we would live with the results. With that, we have spent more than $50 million studying air quality in the Central Valley and in California. Now that the low-hanging fruit has been picked, our air quality in the San Joaquin Valley has the daunting task--we've reduced emissions by 80 percent but we have to find another 90 percent to meet the current standard, let alone a reduced standard. Slide #3. [Slide.] What's interesting about the past slide that I missed on was the fact that we're potentially looking at shutting down all combustible sources of emissions in the Central Valley to meet the current standard. With that, Slide #3. Thank you. [Slide.] As you see here, with the potential lowering of the standard, we're potentially looking at having a lot of the country coming in to noncompliance. Let me finish with, in summary, California dairy families are under the Nation's most strict environmental regulations from water quality to energy cost from the climate change regulations--and this is all happening during the middle of the historic drought in the Central Valley as farmers have been cut back between 65 and 100 percent of their water allocations. We must ask the question: How long will California remain the number one agricultural state with nearly 500 dairy farms, as Representative Valadao noted, have closed in the past five years. As prominent states around us that have been luring our farmers out of California, they've actually made public comments thanking us for sending us ``your best farmers.'' It may draw a chuckle but I would say beware; you possibly could be next. California is just the canary in the coalmine. We strongly urge leaders like yourselves to take careful considerations of the testimony provided today. Again, thank you, Mr. Chairman and Members of the Subcommittee, for your attention and opportunity to provide testimony. [The prepared statement of Mr. Abernathy follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Chairman Bridenstine. Thank you, Mr. Abernathy. I now recognize Commissioner Hiett for five minutes to present his testimony. TESTIMONY OF THE HON. TODD HIETT, COMMISSIONER, OKLAHOMA CORPORATION COMMISSION Mr. Hiett. Thank you, Mr. Chairman and Members of the Committee. I certainly appreciate the opportunity to be here. It's quite an honor and certainly important to our State of Oklahoma to weigh in on this very important issue. This is a complicated issue, as you well know, subject to requiring technical, legal, and environmental expertise. However, without minimizing the importance of this issue, I would like for us to keep in mind just a few basic concepts. Number one, the proposed changes to NAAQS for ozone are unwarranted at this time. On March the 6th, 2015, the EPA finalized state implementation plan requirements for the current standard. That was just a little over a month ago. And these standards, we should note, are the most stringent ozone standards to be imposed yet. It leads me to ask why, and why now before the EPA has even had the opportunity to measure the achievements under the current standards that are beginning to go into place. The second thing that I would like for us to keep in mind, retaining the current NAAQS for ozone would result in substantial compliance with the more stringent proposed standards. In other words, the rules that are already in place will actually work toward substantial compliance for the proposed standards. The EPA's projections show that the vast majority of U.S. counties with monitors would meet the proposed standards by 2025 with the rules that are already in place. Third, the proposed rule is arguably the most expensive air regulation in U.S. history with a disproportionate negative impact on rural America. The EPA's own numbers say that the cost will be in excess of $15 billion. NERA, as was noted earlier, performed a study that indicated that that estimate may be way understated. Furthermore, they said that this would cost the United States gross domestic product $140 billion and cost us 1.4 million jobs. This is a lot of expense for a questionable return as to the ozone levels. I'd like to narrow the focus now to the rural part of my testimony. As I stated earlier, the rural areas will be disproportionately affected by the proposed rules. The Department of Environmental Quality, the Oklahoma Department of Environmental Quality, explained that the areas primarily at risk for a violation would most likely be the rural areas that possess no ability to establish attainment through control of ozone precursors. Next, I'd like to address--and it's been addressed a couple of times already--but I'd like to also address controlled agriculture burns. These prescribed burns are so important in so many different ways from environmental reasons to agricultural reasons to protecting--to public safety reasons. If we are limited, which is very possible under these proposed rules, if we are limited and possibly prohibited from prescribed burns in Oklahoma, I have no doubt we would experience more wildfires. In 2012--in the fall of 2012, my home area experienced a wildfire that burned 60,000 acres and completely destroyed 209 homes. This was an area that unfortunately prescribed burning had not been practiced by the owners in that general area, and as a result, you see what happened. There are consequences to these actions. Next, I'd like to address the emissions controls on trucks and heavy machinery. It's the farmer that will pick up the cost on that, and as you well know, the farmer doesn't get to pick his prices. He is a price-taker. Another challenge facing rural Oklahoma is healthcare, a huge challenge that we address every day. Nearly 1/2 of the rural hospitals in the State of Oklahoma are experiencing negative trend lines according to a study recently done by the Oklahoma Hospital Association. Seven are currently in bankruptcy. You wonder why does that have anything to do with energy costs? Energy costs are important to rural hospitals, to all hospitals. As a matter of fact, we have over a billion-dollar rate case before us at the Commission currently. The hospitals in Oklahoma have joined together and have become an intervenor in that case. So they obviously feel that it is important to them. In conclusion, I'd just say the far-reaching effects of the proposed rule--proposed rules are immeasurable. The economy cannot face the unjustified expense associated with proposed rule and we owe to Americans to offer a balanced plan with achievable goals, as has been proposed previously in current standards. Thank you, Mr. Chairman. [The prepared statement of Mr. Hiett follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Chairman Bridenstine. Thank you, Mr. Hiett, and thank you for your testimony, especially on the health effects. I think there's been a lot of evidence that when you control for poverty, asthma in rural areas and asthma in urban areas where there's higher, you know, outdoor ozone, when you control for poverty, there's a significant difference between asthma is really--it's not there when you control for those things. So the health effects work on two different sides. Poverty is--it does create, you know, bad health effects as well. I wanted to ask--first of all, thank the witnesses for their testimony. Members are reminded that committee rules limit questioning to five minutes, and the Chair recognizes himself for five minutes of questions. Starting with Secretary Reese, you are the Secretary of Agriculture for the great State of Oklahoma, and I wanted to-- and you're a lifelong farmer. I wanted to ask you how this regulation would affect farmers not only in Oklahoma but all across the country? Mr. Reese. As you know, Oklahoma is a full attainment State, and so currently we don't--aren't facing these regulations, but you would just have to look at other states as they've implemented these regulations and retrofitting tractors and machinery and going from the Tier 1, Tier 2, Tier 3, Tier 4 engines would be extremely, extremely expensive for the farm industry. Less than three percent of Oklahoma's tractors--this is just my estimate and I would assume it would be nationwide-- would comply with the Tier 4 engines, combines, tractors, hay machines, all those things put together. Chairman Bridenstine. Real quick, is it your assessment that most farmers can afford those costs? Mr. Reese. It would be my assessment that they cannot, and my assessment would be that the average farmer is 429 acres in Oklahoma and it's smaller across the country. And 429 acres does not necessarily support a $130,000 tractor or a $150,000 tractor. I mean it just takes times to make those investments for those--that machinery. Energy costs--we're a high-energy consumer, dairy barns, poultry, swine, food costs. If we are required to upgrade all of our engines, all of our machinery, it will affect food costs, and thereby affecting poorer people who can't afford it. We have the safest and most affordable food supply the world, and as we increase that, it would be more difficult for people to get nutritious food. And then finally just growing crops, as I said, is a timely issue. It has to be--if EPA is trying to govern when we apply, when we plant, when we harvest, it would be--it would increase food costs. Chairman Bridenstine. Can you share with this panel because a lot of us are not farmers, when you say it's a timely issue, can you share with us what that means? Mr. Reese. Well, exactly right now it's spring. It's pretty--it's time to plant. We just had rains across the State, and in the next two weeks, farmers will be going out planting more acres as fast as they can get them planted. And if it was a nonattainment time, the EPA said, you know, you have to moderate your planting time, that's what your crop is based on is when you plant it, when you're able to apply things to it. And so it's just time-sensitive. Every--plants are just time- sensitive. Chairman Bridenstine. So it could in fact delay planting and ultimately reduce your yield, which would of course also affect the bottom line for the farmer, in addition to all the costs that you've already talked about? Mr. Reese. Exactly. Chairman Bridenstine. Really quickly, could you share with us, you mentioned redcedar in your testimony. Share with us what you go through with red cedar. Mr. Reese. Well, red cedar is a nuisance. It's a public-- it's a plant that we are trying to reduce. It's an invasive species. And the best way to maintain it and the most cost- effective and efficient way by virtually any environmental group will agree is to burn. And so we cut them and we burn them. And we need to prescribe burn to maintain that. And it is a heavy pollen sensitive plant--tree and it causes health concerns. And so you have to measure that, are you going to allow prescribed burns to take care of the health concern or are you not? Chairman Bridenstine. So from a--I guess from an allergy perspective or and asthma perspective, and of course as Commissioner Hiett talked about, that prescribed burns are necessary for safety, and it also reduces wildfires, that ultimately would create even more ozone concerns. So thank you for that testimony. Commissioner Hiett, I've got about a minute left. Could you share with impacts these proposed rules would have on economic development, including transportation and other infrastructure projects in Oklahoma? Mr. Hiett. One of the greatest challenges we have in economic development in the State of Oklahoma is the rural area. Our urban areas tend to have more jobs. Our rural areas struggle to have jobs. If you look at the areas that are the best opportunities for jobs in rural areas, it's going to be manufacturing, oil and gas, transportation, three industries that will be targeted, will be damaged by the proposed rules. So you can see the issue that's there. Also, on the transportation side, and it was mentioned earlier, a nonattainment stops the Federal projects. Well, those of us in agriculture know if we can't get our product to market, it has a diminished value, if any value at all. Chairman Bridenstine. Thank you for that testimony. I will now recognize the gentleman from Arkansas, Mr. Westerman, for five minutes of questions. Mr. Westerman. Thank you, Mr. Chairman. In his testimony during last month's hearing, Dr. Allen Lefohn presented modeling results that indicated that if emissions were reduced across the United States to achieve alternative lower ozone standards, that there would be a tendency for the fourth-highest 8-hour concentration to occur not just during the summer but also in some locations during the spring when the main contributors to ozone are background or natural-occurring sources. The locations affected by the springtime shift can appear anywhere across the United States. He also noted that with more stringent proposed standards, background would become an even more important contributor to exceedances of the standard. We all know that models have limitations but we also know that some models are better than others. The modeling results that Dr. Lefohn described appear to be supported by EPA's own recent analysis. I would like to enter into the record a memo dated November 19, 2014, from Ms. Joann Rice of the EPA. In her memo, Ms. Rice indicates that EPA is proposing that the ozone season be extended from its current period to longer periods of time. The result of EPA's analysis was a total--was that a total of 39 States across the United States experienced exceedances of the 60 parts per million level during the spring. Background ground ozone is highest during the spring. As indicated earlier, ozone formation during the spring from manmade sources is much less than during the summer. It appears that naturally occurring ozone is a national issue, not just limited to Yellowstone and to the Intermountain West. The difficulties dealing with background ozone as experienced in these States is only a precursor for the entire Nation. As a forester and an engineer and after hearing much testimony in this and other committees, it appears to me that we've become so regulatory aggressive that we not only are regulating humans but we're now attempting to regulate nature itself. Mr. Abernathy and Ms. Keslar and Mr. Reese, my question for you is it time that Congress should revisit and modernize the Clean Air Act? Mr. Reese. I will say yes. We talk about--at least my perception is the--the Secretary is a--the Administrator is supposed to use criteria requisite to protect public health. And so what does that mean? You have public health issues on all sides of the issue, the redcedar issue versus asthma versus other lung disease, and so I think that--and food and the need to eat nutritious, economically produced food. So I think there are a number of factors that need to be considered in addition to define public health. Mr. Abernathy. Mr. Westerman, the resounding answer is absolutely. When you come from a State like--especially in California and the Central Valley, we've implemented virtually as many rules as we possibly can even though we still have a no-stone-left-unturned mentality. When you're approaching those background levels, the ability to get significant reductions through the--through a rule process becomes extraordinarily difficult if not impossible, and I think the best way to answer your question--and this has actually been proposed in California--that we have no farm days. Ms. Keslar. I would also agree with the other two members of the panel that it's absolutely time to revisit the Clean Air Act. From my perspective and the implementation perspective is that the Clean Air Act is very vague and it's left up to EPA to interpret the Clean Air Act, and then States are left to deal with the consequences of EPA interpretations of the Clean Air Act. So--especially with respect to background, international transport, rural transport areas, and the exceptional event rule are very vague in the Clean Air Act and there's not a good precedent for implementing those with the current EPA rules. Mr. Westerman. And if you will hold those thoughts, I'll yield back to the Chairman because I believe we need to go vote. Chairman Bridenstine. We have a vote on the Floor that we've got to get to, but what we'll do is we'll just recess and immediately following--we've got one vote. Immediately following the vote, we'll come back here and convene, and if you'd like to have two and a half minutes of the rest of your time, we'll do that. Is that all right? Okay. Well, we are now in recess until after the vote. [Recess.] Chairman Bridenstine. All right. We are back from recess and we will reconvene. We were in the middle of my good friend from Arkansas, Mr. Westerman, asking five minutes of questions, and on the clock we had two and a half minutes when we departed, so we will resume with Mr. Westerman for two and a half minutes. Mr. Westerman. Thank you, Mr. Chairman. I believe Mr. Abernathy was in the middle of a thought when we recessed, so if you would like to pick up with that answer. Mr. Abernathy. Thank you, sir. It would be remiss for me not to include that in my written testimony there was a series of potential modifications to the implementation of the Clean Air Act that I think would be a wonderful starting point for the committee to discuss moving forward. And also on your question of how it affects agriculture, Rule 4570 that I referenced in my oral in my written testimony has had an economic burden to individual producers in California to the tune of about $50,000 in cost just to implement on an annual basis for Rule 4570. So that certainly takes away from spending money on potentially more important things from a dairymen's perspective when you're looking at those kind of costs ongoing on an annual basis, especially for small farmers. Mr. Westerman. All right. So are there ambiguities and issues with the ozone NAAQS that the judicial and executive branch cannot properly deal with because the Clean Air Act hasn't been modernized? Are there any ambiguities or issues that--with ozone NAAQS that the judicial and executive branch can't properly deal with because the Clean Air Act hasn't been modernized? Mr. Abernathy. I'll take a stab at it. We--I think this really lends to a unique opportunity for Congress to dive into this from the standpoint that in California, as I mentioned with a mature regulatory program, way all too often we're having our futures decided in a courtroom with a judge. And I'll let you think about that for a little bit because that's really--that has nothing to do to benefit public health or air quality when you're in a courtroom and a judge is making those decisions based on a very stringent look at simply the law. Mr. Westerman. And, Mr. Chairman, with that I'll yield back. Chairman Bridenstine. I'd like to thank my friend from Arkansas. I'd like to recognize my good friend, Ms. Bonamici from Oregon, for five minutes of questions. Ms. Bonamici. Thank you very much, Mr. Chairman, and thank you again to your--to the witnesses for their testimony. I want to follow up on the line of questioning and also Ms. Keslar's testimony. Mr. Chairman, I think it would be very useful for us to have the EPA come in and inform us about things like the exceptional event rule. I appreciate your testimony, Ms. Keslar, about what it takes to comply with that. It would be helpful for us to hear from the EPA about their efforts and what can be done to make it easier for jurisdictions to comply with that rule. That would be very useful for us. But Dr. Miller, the EPA and others have estimated the benefits achieved by lowering the ozone standard, and you talked about that in your testimony. Specifically, under the proposed standard of 65 to 70 parts per billion, the EPA estimates that it would generate an estimated $19-$38 billion worth of benefits, and that includes a range of components from the number of premature deaths avoided to the number of children's asthma attacks that can be prevented. Can you please describe some of the other benefits that could come from and ozone standard in the range of 70 to 65 parts per billion? Dr. Miller. Yes, thank you. What I would like to start with is in the context of the need to modernize the Clean Air Act, I would flip it and I would say maybe it's time to recognize that the Clean Air Act has modernized America. And this is seen through its technology-forcing nature and the innovation that has resulted from in the past setting what was at that time viewed as stringent and unachievable ozone standards, yet we achieved them. Right now, in the Northeast we're largely achieving the current standard outside of New York City. We have achieved that. I'm hoping we can maintain that, but we have achieved that already. And that was viewed at one time as impossible. Ms. Bonamici. And, Dr. Miller, can you talk just a little bit about--I know you talked about where your organization-- your area. Can you talk about how much of that is urban and how much of it is rural? Dr. Miller. We also suffer from transport. Now, the largest portion of our pollution load is urban. It is from transportation and urban sources. But on top of that, we get a pollution load from the West. There are large sources to the West. We've actually successfully addressed to some extent power plant pollution that comes across on the westerly winds. So we have a mix, and so we're sympathetic to Western issues, to transport from Asia. We don't get that kind of transport from Asia. We have our own kind of transport, and it is controllable not by our States but through Federal measures that create regional programs that have been done in the past such as a NOX SIP Call that have been very effective and resulted in deep reductions of ozone not just in the urban areas but across these broad regional and rural areas that are under discussion today. Ms. Bonamici. Terrific. And I know that some of the benefits associated with improving the ecosystem are hard to quantify, and it's likely that there's some benefits that don't reflect in the full range of outcomes. Can you describe some of the ecosystem services and their value to the economy, for example, water regulation? Dr. Miller. Right. So the same kind of emissions, specifically nitrogen oxides that contribute to ozone formation also contribute to acid rain, nitric acid. Nitric acid has ecological impacts in terms of forest health. It frees up aluminum ions in forest soils. Aluminum ions are toxic to aquatic life so it ends up in streams and rivers, kills fish. That has a detrimental impact on, say, sportsmen who like to catch fish. It has--nitrogen deposition in water has a fertilizing effect. It creates algal blooms. Those blooms suffocate aquatic life. Fisheries have large economic benefits, large economic value, and that kind of impact diminishes those as well. Ms. Bonamici. And thank you. We've heard a lot about some of the costs and technical challenges, and you talked about this a bit. The EPA does not allow consideration of those factors when setting a standard, but can you comment on the importance of separating the costs associated with attaining or implementing the ozone standard from the assessment of what level is appropriate to protect public health? And I know you mentioned the incentives to develop new technology that come from such regulation. Dr. Miller. First, I'd like to just clarify. It's not EPA that doesn't allow consideration of cost in the setting the standard. Those are science-based standards based on health and protecting public welfare. It's--the Clean Air Act is created by Congress and is interpreted unanimously by the Supreme Court-- Ms. Bonamici. Right. Dr. Miller. --that requires standards to reflect science. Ms. Bonamici. Understood. Thank you. Dr. Miller. The implementation part is where costs come in. We've been very successful in that and that's where the innovation comes. Ms. Bonamici. Terrific, thank you. And I just wanted to mention that this committee did pass in the last Congress a bill to do more research about the harmful algal blooms that you mentioned, and I was proud to work on that with my colleague from Florida, Mr. Posey. And I'm out of time and I yield back. Thank you, Mr. Chairman. Chairman Bridenstine. I'd like to thank the gentlelady from Oregon, Ms. Bonamici. Without objection, I'd like to enter into a second round of questions. I'll recognize myself for five minutes. And if it's all right, you're willing to stick around for another five minutes? So there's a couple of things I'd like to bring out. I think all of us recognize that in urban areas there's a higher incidence of surface ozone than in rural areas, not always the case but in many cases that's the case. I would like to submit for the record a study from Johns Hopkins University, and what they attempted to do is they sought--according to them, the objective, ``we sought to estimate the prevalence of current asthma in U.S. children living in inner-city and non-inner-city areas and to examine whether urban resident, poverty, or race/ethnicity are the main drivers of asthma disparities.'' What they found is that there was no statistically significant difference once you control for poverty, once you control for race and ethnicity, the incidence of asthma in areas that have higher surface ozone are not greater than the incidents that don't have as high ground level ozone. So I'd like to introduce for the record the scientific study from Johns Hopkins University. [The appears in Appendix II] Chairman Bridenstine. I'd also like to--actually, we now have back one of our Members here. I will retain my remaining three minutes and fifty seconds. And is it possible to yield at this time to the gentleman from Texas, Mr. Weber? Mr. Weber. Yes, sir, it is. Thank you, Mr. Chairman. Chairman Bridenstine. You're recognized for five minutes. Mr. Weber. I'm not sure five minutes is enough. Can I have your other three minutes? Chairman Bridenstine. Negative. Mr. Weber. Mr. Hiett--is it Hiett? Is that how you that? Commissioner Hiett? Mr. Hiett. Yes, sir, Hiett. Mr. Weber. Okay. You said on March 6, 2015, the SIP, state implementation plan, was approved for Oklahoma or finalized I think you said. How long did that process take? Mr. Hiett. I'm sorry, that was the requirement. Mr. Weber. Was that the requirements? Mr. Hiett. That was the requirements that were issued on March 6---- Mr. Weber. Okay. Mr. Hiett. --of 2015. Mr. Weber. Can you describe the length of that process? Mr. Hiett. It began in 2008 is my understanding. Mr. Weber. So that's seven years---- Mr. Hiett. Yes. Mr. Weber. --give or take? When were--and I'll ask this question of Dr. Miller. When were the last EPA--ozone regs changed or recommended to be changed? Was it six years ago, ten years ago? Dr. Miller. Regs, you mean standards? Mr. Weber. Standards, yeah, National Air Indoor Quality---- Dr. Miller. The last time the ozone standards were revised was 2008. Mr. Weber. 2008, so that's seven years ago. Okay. And if I understand your testimony, Commissioner, earlier, prescribed burning actually would help in your area in Oklahoma? Mr. Hiett. Absolutely. There's a public safety factor---- Mr. Weber. Okay. Mr. Hiett. --there's a health factor, there's--and of course the agricultural and economic factors. Mr. Weber. Sure, but your testimony here today is that proposed--I call them regs--would actually prevent that it would actually endanger lives, property, and commerce? Mr. Hiett. And in addition to that would--yes, that is correct, and in addition to that would require that agriculture producers use more chemical to fight--to battle these invasive species---- Mr. Weber. Sure. Mr. Hiett. --where now they can do it with fire. Mr. Weber. Sure, absolutely. Mr. Hiett. With prescribed burning. Mr. Weber. So thank you. Dr. Miller, you testified earlier right before we went to votes, when Congress set up the Clean Air Act, they were very specific that they don't take the cost into account. Do I recall correctly you said something to that effect? Dr. Miller. Yes, it's setting standards. They are health- based, based on science. Costs come into implementing the standards. Mr. Weber. Okay. Do you think that that might have been shortsighted on their part? Is there any possibility, on Congress' part? Not that we would ever be shortsighted. Dr. Miller. Actually, I think was very farsighted. And as I've mentioned several times, I think that's forced areas to innovate, industry to innovate in areas that they weren't going to do, and that's---- Mr. Weber. So it's not like Congress couldn't have been wrong or the Supreme Court could never be wrong? The Supreme Court has never reversed itself. Or is that---- Dr. Miller. It does all the time. Mr. Weber. They do all the time. Congress I would submit probably does need to as well. Mr. Abernathy, the EPA's cost-benefit analysis for the ozone proposal caps, the cost of unknown controls, I'm from Texas, Gulf Coast, a lot of chemical plants, refineries there on the Gulf Coast. Texas produces 60 percent of the Nation's jet fuel in my district, and I think maybe again it was Dr. Miller said that this was the most expensive regulation--going to be--one of you said that and we've heard that over and over again. But my question is more specific. So industry--I own an air-conditioning company. Industry will do what's very pretty to and very competitive to be able to get that competitive edge for the most part. Mr. Abernathy, I think the controls--they're saying in the proposal that the caps have cost of unknown controls that don't even exist are assumed to be around $15,000. Have you seen that figure? Mr. Abernathy. Yes, sir. Mr. Weber. Does that sound reasonable to you? Mr. Abernathy. No. Mr. Weber. I've been in these chemical plants and refineries and I can tell you--and in the Texas Legislature I was on the Environmental Reg Committee. I can tell you without a shadow of a doubt that's nowhere near close to the cost. So, you know, when they say it's assumed to be that kind of a low, I think that's pie-in-the-sky or dare I say ozone-in-the-sky. Mr. Abernathy, one other question. What happens to permitting for the dairy industry throughout the country, throughout the country when ozone standards are set basically to background levels? Mr. Abernathy. Sir, would you like me to answer the first-- end of your first question? Mr. Weber. Absolutely. You've got more input on it, you bet. Mr. Abernathy. Thank you. I actually have the privilege of knowing Chairman Shaw and---- Mr. Weber. TCEQ. Mr. Abernathy. Yes, sir, and working with the Dr. Shaw, Chairman Shaw with the USDA Air Quality Task Force, and we've had the pleasure of going over quite a few of the struggles that Texas has had as an extreme nonattainment area. And keeping that into consideration, he's bumping up to the same virtually impossible task of trying to continue to regulate industries that he has really regulated to the point where there's nothing left to pick off the tree. So I have firsthand knowledge of the commonality that the Central Valley in California, along with South Coast and Texas share when it comes to setting standards that are right at background levels of ozone. And with that, on the cost, this is--in California we call it a black box. We've had standards that we've had to meet, we've had technologies that didn't exist, and we've had a timeline that we have to meet. Mr. Weber. All within seven years and it's fixing to be changed again. Mr. Abernathy. Yes, sir. And the interesting part about that is when we--when the board--San Joaquin Valley Board passes a rule on a business, we have no idea or hopes that there will be technology that will get us there. The district has had the farsightedness to actually develop one program that I've been associated with that's called the Technology Advancement Program that actually looks at new and innovative processes, whether it's emission controls or so forth to help advance. But even those certain things--and I'll give you this as an example--we had John Deere at one of my members' dairies in Fresno County. It was a million-dollar piece of equipment. It was the latest, greatest technology that had ever been put into a John Deere tractor. During the silage harvest, it burned to the ground. So with that, technology does come along and innovations do come along, but as every farmer at this table knows, it takes a long time to go from conceptual to reality where you can depend on that 24 hours a day, 365 days year. But answering your question, $15,000 a ton, just as another number, when the $61.5 million that Rule 4570 cost Central Valley dairy farmers came out to about $6,700 a ton. At the same time, NOx was being traded as environmental reduction credits/ERCs from businesses that had closed down in the Central Valley at a tune of $32,500. Mr. Weber. And they still had a way to make money. Mr. Abernathy. That's right. Mr. Weber. And you--and forgive me, Mr. Chairman, if you'll indulge me for one more half-a-minute--and you know that 70 percent of NOx comes from nonstationary point sources, i.e., vehicles. Mr. Chairman, I yield back. Chairman Bridenstine. Roger that. And thank you for your questions. And just as a reminder, the record will remain open for two weeks for additional comments and written questions if the gentleman from Texas would like to submit more written questions. I know you definitely needed more than five minutes. Yeah, you bet. I'm going to yield. I've got three minutes and fifty seconds remaining. I'm going to yield two minutes to my friend from Oregon, Ms. Bonamici, and then we'll close the hearing at that point. Ms. Bonamici. Thank you, Mr. Chairman. I don't think I'll need two minutes. I wanted to add to the record, first, a letter from the National Farmers Union, the second-largest general farm organization in the United States, in support of the EPA's proposed revisions. Particularly, they found compelling the effect on crop yields a causal relationship between exposure to ozone and ambient air and visual--visible foliar injury affects on vegetation, reduced vegetation growth, reduced productivity and terrestrial ecosystems, reduced yield, and quality of agricultural crops. So with that, I'd like to enter that into the record. And one more thing, just released today is the American Lung Association's 2015 State of the Air Report showing that more than four in ten people live in areas with an unhealthful--unhealthy level of ozone. According to this report, there's more than 17.7 million people in the United States who live in counties where the outdoor air failed all three of the tests. So, Mr. Chairman, I would like to introduce this letter and this report into the record. Chairman Bridenstine. Without objection, they will be introduced into the record. [The appears in Appendix II] Chairman Bridenstine. I would like to--are you yielding back? Ms. Bonamici. I yield back. Chairman Bridenstine. Okay. Ms. Bonamici. Thank you. Chairman Bridenstine. I would like to thank the witnesses for their valuable testimony. Thank you for sticking around and answering questions. I apologize that we had a vote in the middle of it. I'd like to thank the Members for their questions. As a reminder, the record will remain open for two weeks for additional comments and written questions from the Members. And with that, this hearing is adjourned. Thank you. [Whereupon, at 4:15 p.m., the Subcommittee was adjourned.] Appendix I ---------- Answers to Post-Hearing Questions Responses by The Hon. Jim Reese [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Responses by Ms. Cara Keslar [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Responses by Mr. Kevin Abernathy [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Responses by The Honorable Todd Hiett [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Appendix II ---------- Additional Material for the Record Statement submitted by full Committee Ranking Member Eddie Bernice Johnson [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Documents submitted by Representative Frank Lucus [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Documents submitted by Subcommittee Ranking Minority Member Suzanne Bonamici [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [all]