H.R. 2681 (112^th): Cement Sector Regulatory Relief Act of 2011

GovTrack’s Bill Summary

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Library of Congress Summary

The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.

House Republican Conference Summary

The summary below was written by the House Republican Conference, which is the caucus of Republicans in the House of Representatives.

This summary can be found at http://www.gop.gov/bill/112/1/hr2681.

Background

There are approximately 100 cement manufacturing plants in America, and the cement industry provides high-wage jobs to 13,000 workers.  Because virtually all construction projects utilize cement in some aspect of their design, the industry is the foundation of our nation’s infrastructure.  Cement manufacturers are already among the most highly regulated enterprises in America, and the latest round of EPA regulation threatens to increase the industry’s burden.  These new rules set exceedingly stringent requirements that cannot be met by many facilities within the slated compliance periods, either because they are technically unachievable and/or cost-prohibitive.  Ragland, Alabama, for example, recently saw the suspension of a $350 million cement production facility, putting 1,500 construction jobs on hold and additional permanent and high-paying plant operation jobs in limbo.

The EPA estimates the cost of Cement MACT alone will be $2.2 billion, and concedes that the rule may lead to the “idling” or closure of 12 plants.  The agency further estimates that national average prices for Portland cement may increase 5.4 percent and domestic production may fall by 12 percent.  However, a recent study by the Portland Cement Association concluded that the EPA’s new Cement MACT regulations threaten to shut down 18 plants – almost 20 percent of the domestic industry.  The study also found that the likely cost of compliance with these standards would be $3.4 billion annually (half the industry’s annual revenues), and the cost of complying with the new incinerator requirements would be $2 billion.

In addition to the job losses directly caused by plant closures, rising cement prices pose a threat to the nation’s beleaguered construction industry.  According to the House Energy and Commerce Committee, increased construction costs resulting from rising cement prices could lead to the loss of 12,000 to 19,000 construction jobs.  Further, as domestic production decreases, Americans will become more dependent on supplies imported from other countries.

H.R. 2681 would provide a legislative stay of these overly burdensome rules and allow for the implementation of effective regulation that protects communities both environmentally and economically.  These new rules would be both technically and economically achievable – to prevent plant shut downs and job losses.

Summary

H.R. 2681 would provide a legislative stay of three Environmental Protection Agency emissions standards that apply to cement manufacturing plants.  These rules have been referred to as the “Cement MACT rules.”  The regulations are:

1. National Emission Standards for Hazardous Air Pollutants from the Portland Cement Manufacturing Industry and Standards of Performance for Portland Cement Plants;
2. Standards of Performance for New Stationary Sources and Emission Guidelines for Existing Sources: Commercial and Industrial Solid Waste Incineration Units; and
3. Identification of Non-Hazardous Secondary Materials That Are Solid Waste.

The bill would prevent these rules from being implemented and require the EPA to promulgate, 15 months from the date of enactment, new regulations that:

1. Establish maximum achievable control technology standards, performance standards, and other requirements under the Clean Air Act; and
2. Identify non-hazardous secondary materials that, when used as fuels or ingredients in combustion units of such industry and plants are solid waste under the Solid Waste Disposal Act for purposes of determining the extent to which such combustion units are required to meet the emissions standards under the Clean Air Act.

H.R. 2681 would also extend the compliance period for employers by a minimum of five years.  Specifically, the bill would require the EPA Administrator to establish compliance dates for these standards after considering compliance costs, non-air quality health and environmental impacts and energy requirements, the feasibility of implementation, the availability of equipment, suppliers, and labor, and potential net employment impacts.

Cost

The Congressional Budget Office (CBO) estimates that implementing H.R. 2681 would have a net cost of $1 million over the next five years.  Enacting this legislation would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.

House Democratic Caucus Summary

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