• Rules Set for First State CO2 Cap-and-Trade Program
  
• Unapproved Transgenic Rice Found in U.S. Rice Supply
  
• USDA Found Guilty in Hawaii Biopharming Case
  
• Pennsylvania Stimulates Alternative Fuel Production
  
• Alaska's Proposed Road to Nowhere Challenged in Court
  
• New Jersey Could Amend Constitution to Fund Parks Upkeep
  
• Student Sustainability Competition for $1.25 Million Now Open
  

Rules Set for First State CO2 Cap-and-Trade Program

WASHINGTON, DC, August 10, 2006 (ENS) - ALBANY, New York, August 21, 2006 (ENS) - The seven Northeast states participating in the first U.S. multi-state program to reduce harmful climate changing emissions from power plants have released a model set of regulations to be proposed in each state to implement the program.

The Regional Greenhouse Gas Initiative (RGGI) creates a mandatory carbon dioxide emissions cap, combined with a market-based trading system that rewards innovative companies for quick action and lowers overall costs.

This is the first mandatory cap-and-trade program for carbon dioxide (CO2) emissions in U.S. history. The states participating in RGGI are: Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York and Vermont. The state of Maryland recently adopted legislation requiring Maryland to join RGGI by June 2007.

The agreement caps power plant emissions at current levels beginning in 2009 and starts ramping down the limit in 2015, giving companies ample time to prepare for the new targets. By 2019, targets will be set 10 percent below current emissions.

Estimates project that average household bills could increase by approximately $3-21 annually above what they otherwise would have been. But the deal includes innovative measures to protect consumers, who can expect to see less pollution as well as lower energy bills due to new investment in energy efficiency.

"Elected officials all across the country should be watching what these governors have accomplished by setting aside political rhetoric and getting down to the business of real global warming solutions," said Dale Bryk, an attorney at the Natural Resources Defense Council who has been closely involved in the process.

"What they are doing here is going to set a sensible, achievable pace for the rest of the country, and create a new wave of investment in cleaner, more efficient energy technologies," said Bryk.

Under the cap-and-trade program, the states will issue one allowance, or permit, for each ton of CO2 emissions allowed by the cap. Each plant will be required to have enough allowances to cover its reported emissions. The plants may buy or sell allowances, but an individual plant's emissions cannot exceed the amount of allowances it possesses.

The total amount of the allowances will be equal to the emissions cap for the region. Coal, oil and gas-fired electric generating units with a capacity of 25 megawatts or more will be included under RGGI.

The RGGI states have agreed that at least 25 percent of a state's allowances are to be dedicated to strategic energy or consumer benefit purposes, such as energy efficiency, new clean energy technologies and ratepayer rebates. A power plant also could purchase these allowances for its own use. The funds generated from these sales will be used for beneficial energy programs.

The RGGI program allows power plants to utilize offsets. These greenhouse gas emission reduction projects from outside the electricity sector may account for up to 3.3 percent of their overall emissions. Offset projects provide generators with additional flexibility to meet their compliance obligations at the lowest cost.

A power plant owner/operator will be allowed to select the lowest cost emission reductions and apply them to a portion of the plant's emissions requirement. Examples of offset projects include: natural gas end use efficiency, landfill gas recovery, reforestation, and methane capture from farming facilities.

Offset credits may come from anywhere in the United States, provided offset projects from outside of the participating states must take place under the regulatory watch of a cooperating agency in that state.

In December 2005, the governors from the seven states entered into a memorandum of understanding specifying the general framework of the program. On March 23, 2006, the states released draft model regulations that outlined proposed specific requirements for the program. The draft rule was the subject of a 60-day comment period and two public meetings were held.

The model set of regulations released August 15 reflects and incorporates many of the comments received and provides detailed rules for the program. Each state will use the model rule as a starting point for obtaining legislative or regulatory approval of the program.

Unapproved Transgenic Rice Found in U.S. Rice Supply

"The U.S. Department of Agriculture and U.S. Food and Drug Administration have been notified by Bayer CropScience that the company has detected trace amounts of regulated genetically engineered rice in samples taken from commercial long grain rice," Johanns told reporters. "Both have reviewed the available scientific data and concluded that there are no human health, food safety, or environmental concerns associated with this GE rice."

The rice variety, called LLRICE 601, is engineered with DNA that makes the plants resistant to an herbicide manufactured by the agricultural corporation Aventis.

Bayer has developed many genetically engineered herbicide-tolerant products with the protein called Liberty Link, three of which are rice, Johanns explained.

Two deregulated lines, LLRICE 62 and LLRICE 06, have been through thorough safety evaluations and have been deemed safe for use in food and safe in the environment, although these lines have not been commercialized, Johanns said.

"Based on the available data and information, the U.S. Food and Drug Administration has concluded that the presence of LLRICE 601 in the food and feed supply poses no safety concerns. USDA's Animal and Plant Health Inspection Service (APHIS) also conducted a risk assessment, which indicates LLRICE 601 is safe in the environment.

Bayer officials said the company is "cooperating closely" with federal agencies. Officials said the company had no plans to market LLRICE 601 and therefore had not requested deregulation. Based on reports that LLRICE 601 is in the marketplace and a petition from Bayer, APHIS will conduct a deregulation process, including an opportunity for public comment.

"Because the line of GE rice in question was regulated, APHIS is conducting an investigation to determine the circumstances surrounding the release and whether any violations of USDA regulations occurred," Johanns said.

"The protein found in LLRICE 601 is approved for use in other products. It has been repeatedly and thoroughly scientifically reviewed and used safely in food and feed, cultivation, import and breeding in the United States, as well as nearly a dozen other countries around the world," Johanns said.

The secretary admitted that the discovery of genetic contamination could impact rice exports, worth nearly $1 billion a year. Many U.S. trading partners have policies forbidding import of some genetically engineered foods, whether or not they are approved by the United States.

Since 1987, APHIS has deregulated more than 70 GE crop lines and in the last decade U.S. farmers have planted biotech varieties engineered mainly for herbicide tolerance, insect resistance, and enhanced quality traits.

Gregory Jaffe, biotechnology director for the Center for Science in the Public Interest, a consumer group in Washington, says this incident is "another example of how this biotechnology industry continues to act irresponsibly."

In Europe, Bayer has applied for the import of a similar GM rice called LL62 meant for human consumption. The German Coalition against Bayer Dangers, which has been monitoring the company for 25 years, is urging the European Food Safety Authority not to approve LL62. The coalition warns that approval of this modified rice would pose unknown risks for human health and the environment.

s Coalition spokesman Philipp Mimkes said, "We call for the stringent application of the precautionary principle with regard to GM rice. The incident in the U.S. shows that risks linked with modified crops can't be controlled in the long term."

USDA Found Guilty in Hawaii Biopharming Case

The court found that USDA acted in "utter disregard" of the Endangered Species Act, and also violated the National Environmental Policy Act by failing to conduct even preliminary investigations prior to its approval of the plantings.

The August 10 decision represents the first federal court ruling ever on "biopharming," the practice of genetically altering food crops to produce experimental drugs and industrial compounds. Biopharm crops produce experimental vaccines, growth hormones, blood clotting and blood thinning agents, antibodies, and industrial enzymes.

Biopharming has provoked the anger of the food industry, public interest groups, and farmers concerned about contamination of foods and the environment with potent drugs, and potential economic losses from adulterated food.

The four USDA permits at issue in the case authorized Monsanto, ProdiGene, Garst Seed Company, and the Hawai'i Agriculture Research Center to plant over 800 acres (1.25 square miles) of drug-producing corn and sugarcane at various sites in Kauai, Oahu, Molokai, and Maui from 2001 to 2003.

The plaintiffs in the case - Center for Food Safety, Friends of the Earth, Pesticide Action Network North America, and KAHEA-the Hawaiian-Environmental Alliance - sued the USDA in November 2003. Plaintiffs were represented by Earthjustice and Center for Food Safety.

"This decision shows that regulatory oversight of this out of control industry has been woefully inadequate. The agency entrusted with protecting human health and the environment from the impacts of genetic engineering experiments has been asleep at the wheel," said Paul Achitoff, attorney with Earthjustice.

"The ruling is a clear victory for Hawaii's environment," said Joseph Mendelson, legal director of the Center for Food Safety. "It will help protect the islands from the illegal field-testing of genetically engineered, drug-producing crops."

Plaintiffs point to a scathing critique of USDA's regulation of biopharm and other genetically altered crops issued by the agency's Inspector General in December 2005 as evidence that USDA continues to neglect its regulatory duties.

That report documented numerous violations, including USDA's failure to record locations of field trial sites and conduct required inspections.

In two instances, USDA regulators were unaware that a total of more than two tons of harvested biopharm crop material was stored at uninspected facilities for over a year.

Hawaii is the nation's leading state for plantings of experimental, genetically engineered crops, having hosted more than 5,000 such tests from 1987 through 2004, including several dozen biopharm crop trials.

Two high-profile contamination incidents in 2002, in which biopharm corn produced by ProdiGene contaminated soybeans and corn in Nebraska and Iowa, provoked widespread criticism of the practice, which continues.

Plaintiffs have also challenged USDA's practice of concealing the locations of trials from the public, and in most cases not disclosing the substances being grown in the plants.

Judge J. Michael Seabright ordered the parties to appear in court on August 22, to discuss remedies for the government's violations.

"We will not rest until the federal government prohibits the irresponsible and hazardous field-testing of drug-producing, genetically engineered crops," said Andrew Kimbrell, executive director of Center for Food Safety.

Pennsylvania Stimulates Alternative Fuel Production

Russia's largest oil company, Lukoil, will serve as the exclusive distributor of the output, which is expected to be 108 million gallons of ethanol per year.

The $250 million state investment also includes $70 million for the development of a pilot-scale cellulosic ethanol demonstration plant to make the fuel from starches in plant products such as wood chips and agricultural waste.

Studies show that cellulosic ethanol could dramatically reduce fossil fuel use by up to 90 percent and yield large reductions in greenhouse gas emissions.

In addition, the Department of Environmental Protection (DEP) is now accepting project applications for the Alternative Fuels Incentive Grant Program, AFIG, which finances the production and use of clean burning fuels in Pennsylvania.

By emphasizing investments in ethanol and biodiesel, the grants support Governor Rendell’s PennSecurity Fuels Initiative to produce and use 900 million gallons annually of clean, domestic fuel - an amount equal to what the state is expected to import from the Persian Gulf 10 years from now.

DEP Secretary Kathleen McGinty said, “To achieve energy security, we must invest in the infrastructure to produce and distribute alternative fuels. As we build the sources and markets for alternative fuels, we will create jobs in Pennsylvania, promote our agricultural communities and clean the air we breathe at the same time.”

Alternative fuels emit reduced amounts of particulate matter than burning petroleum, less carbon monoxide and fewer of the pollutants that contribute to ground-level ozone, or smog.

AFIG will fund projects that increase the production and use of biodiesel and ethanol, including B20, a blend of 20 percent biodiesel with 80 percent diesel fuel, and E85, a blend of 85 percent ethanol with 15 percent gasoline. Pennsylvania is particularly interested in the production of biodiesel and ethanol for use as a transportation fuel.

For the first time, AFIG is offering incentives to Pennsylvania producers of biodiesel and ethanol -five cents a gallon to Pennsylvania producers of biodiesel or ethanol, up to 12.5 million gallons in a 12-month period.

“Priority will be given to projects that create jobs and boost the state’s economy by bringing new or expanded fuel production facilities to the Commonwealth,” McGinty said.

Governor Rendell is investing $30 million over the next five years to build re-fueling and production infrastructure to support wide distribution of the alternative fuels.

To stimulate the use of biodiesel and ethanol, school districts, transit authorities, local government agencies and nonprofit organizations are eligible for grants to buy down the added cost to use these fuels. For this grant round, AFIG will cover 100 percent of the added costs to eligible applicants who purchase B20 or E85 for use in their fleets.

Since the inception of the AFIG program in 1992, DEP has awarded $28.7 million for 984 projects in more than 50 counties. AFIG investments have leveraged more than $78 million from public and private fleet operators, fuel providers and the federal government.

Alaska's Proposed Road to Nowhere Challenged in Court

The $250 million road project would cut through a roadless area north of Juneau on the east side of Lynn Canal and end in the wilderness roughly across the canal from Haines. The project includes construction of a new ferry terminal at the end of the road.

In this lawsuit, the Southeast Alaska Conservation Council, Skagway Marine Access Commission, Lynn Canal Conservation, Alaska Public Interest Research Group, Sierra Club, and Natural Resources Defense Council claim that the U.S. Federal Highway Administration and the U.S. Forest Service violated the law by not considering less environmentally disruptive alternatives.

The lawsuit focuses on the Federal Highway Administration and Forest Service's failure to consider alternative methods of improving transportation between Juneau, Haines, and Skagway, and on their failure to fairly assess the effects the road would have on wildlife and other resources in Berners Bay and Lynn Canal.

The organizations contend that the Highway Administration violated the National Environmental Policy Act by refusing to consider an alternative in which travel in Lynn Canal is improved by more effectively managing the existing ferry system. Each of the alternatives considered by the Highway Administration requires construction of new ferries or terminals. No consideration is given to better managing the current ferry system to provide more effective service in Lynn Canal.

The organizations also argue that the Forest Service violated the National Forest Management Act by authorizing road construction through designated Old-Growth Habitat Areas without fully considering alternatives. Road construction is prohibited in these reserves if a feasible and prudent alternative exists, and the plaintiffs contend that the Forest Service has refused to analyze alternatives.

The lawsuit also challenges the Highway Administration's refusal to adequately consider the effects of road construction, operation, and maintenance on bald eagles and Steller sea lions.

Finally, the lawsuit says this particular road extension and ferry shuttle system was chosen based on a faulty prediction of traffic demand. The demand projection assumes that without new ferries or roads, people will wait for more than eight hours at the ferry terminal each time they travel in Lynn Canal. Plaintiffs say experts have told the highway administration this is "an unreasonable approach that denies common sense."

New Jersey Could Amend Constitution to Fund Parks Upkeep

TRENTON, New Jersey, August 21, 2006 (ENS) - New Jersey state officials, legislators and environmental advocates Friday urged voters to approve a proposed constitutional amendment that would ensure stable funding for maintaining state and local parks and natural areas.

If approved by voters on November 7, the proposed amendment would dedicate an existing surplus of constitutionally protected environmental funds from the state’s Corporation Business Tax for the maintenance needs of the state’s parks, historic sites, and wildlife areas.

According to the state Department of Environmental Protection (DEP), the state’s parks have an estimated $250 million of overdue repairs. The constitutional amendment would dedicate $15 million per year through 2015 and $32 million per year thereafter for the upkeep of state and local parklands.

"The vote on November 7 is an easy choice for voters because it's a win-win for New Jersey," said DEP Commissioner Lisa Jackson. "This measure provides additional revenue to address the long overdue improvements and repairs that are needed in our state parks, historic sites and wildlife areas, and it does so without imposing any new taxes on New Jersey residents."

Hosting a Friday morning press conference at Island Beach State Park, both Republican and Democratic state lawmakers said approval of the state referendum is important to New Jersey’s economy, environment, public health, and overall quality of life.

Representatives from the New Jersey Audubon Society, New Jersey Environmental Federation, New Jersey Public Interest Research Group, and Sierra Club appeared to lend their support.

New Jersey has 42 parks, 11 forests, three recreation areas and numerous historical sites.

New Jersey parks record more than 15.7 million visitors each year. In 2001, more than $5.6 billion was generated through outdoor recreation in New Jersey’s natural areas and employed more than 50,000 people across the state.

Student Sustainability Competition for $1.25 Million Now Open

WASHINGTON, DC, August 21, 2006 (ENS) - The federal government is offering $1.25 million in sustainability grants to teams of college students through the agency's People, Prosperity and the Planet, P3, contest, a national student design competition launched in 2004.

Applications are being received for the funds that will enable teams of college students to research, develop and design scientific and technical solutions to sustainability challenges that protect the environment while achieving continued economic prosperity.

EPA will award as many as 50 grants up to $10,000 each to student teams to research and develop sustainable solutions during the 2007-08 academic year.

In spring 2008, the teams will be invited to bring their designs to Washington, DC to compete for EPA's P3 Award, which includes an additional award worth up to $75,000 to further develop and implement the project in the field.

The competition will be judged by the National Academy of Engineering for design innovation and technical merit along with relevant social, economic and environmental considerations that are the keys to sustainable designs.

The P3 competition is open to teams of students attending colleges, universities and other post-secondary educational institutions.

Interdisciplinary teams are encouraged, including representatives from multiple engineering departments and departments such as chemistry, architecture, industrial design, economics, policy, social sciences, business, and communication.

Proposals must reach the EPA by December 21, 2006. Application procedures and materials for this year's grants are found at: http://es.epa.gov/ncer/rfa/2007/2007_p3_4thannual.html

Details about the P3 competition are at: http://www.epa.gov/P3