MATTHEW H.

MEAD GOVERNOR

THE

OF WYOMING

STATE CAPITOL CHEYENNE, WY 82002

Office of the Governor

October 19, 2011

The I lonorable Barack Obama President of the United States The White I-louse 1600 Pennsylvania Avenue, N.W. Washington, DC. 20500 Dear Mr. President: \Ve. the undersigned Governors, write you out of concern about the cumulative impacts and costs of all the new and contemplated rules and standards issued by the Environmental Protection Agency (EPA). We are concerned with the fast pace of regulatory change in the air programs and increasingly stringent air quality rules. The added cost of administering these many programs and rules is a financial strain on our slates and creates uncertainl for utilities and industry. Inadequate consideration has been given to the operational costs and suboptimal environmental perlormance that will result IIom the cumulative eflcts of these rules and regulations. Our states are effectively dealing with the environmental impacts of energy development and. therefore, must become Cull partners in developing regulatory strategies.
In addition to our apprehension about the scope and content of many EPA regulations. we are also concerned about the EPAs lack of coordination with other federal agencies and aiThcted

in issuing permits in a timely manner. Often, the EPA appears to belatedly join the permitting process with diffuse ohections and concerns that are not based on accurate and holistic information and are diffictilt to address SO late in the process. As a consequence. important energy and economic development pro eels within our states are often delayed or abandoned with a concomitant increase in cost and loss of jobs.
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Many slates now require costbenefit and jobimpact analyses hefire any new state rule or
regulation can move forward. We urge the EPA to clearly demonstrate that benefits outweigh costs before any regulation advances. lhorough analysis will ensure that secondary impacts are adequately considered, including iHcreased costs for agricultural and industrial inputs.
Many ol us are concerned about draft internal guidance under consideration by the EPA and the Army Corps of Engineers that would significantly expand federal jurisdiction over waters oh the 1. inited States. tinder the guise of interpreting decisions of the I. I.S. Supreme Court, the diahl

PHONE: (307) 777-7434

FAX: (307) 632-3909

would significantly expand federal jurisdiction to nonnavigable waters and wetlands, thereby infringing upon traditional slate authority. We believe the drafl goes beyond clarification and violates the requirements of the Administrative Procedure Act by resorting to internal guidance

instead of formal rulemaking.

to a number of the oil and gas producing states relates to 1PA acti\ itiLs iLgaldlng h\dlaullc Iiactuiing technolog\ T 01 0\ ci Iift\ \ eais StdtL agLnLlcS have been regulating oil and gas operations, including hydraulic fracturing. As technologies in this area have advanced, we have responded with appropriate regulations. Pursuant to our responsibilities, it is our respective state governments which oversee the drilling, fracturing. water discharge and all other aspects of production to assure that public health and the environment are protected. We would also like to know the extent ol the public process that the EPA will undertake prior to issuing any guidance and the review/appeal processes to be made available.

Another issue that is of great importance

The fragile nature of the economic recovery should remain at the ibrefront of every decision by lCderal policy makers. Energy operations in the our states not only provide the country with domestic energy, but these industries constitute a significant base of employment and royalties which fund our schools. police and other vital state and local services. Protecting these important economic resources, while protecting health and the environment, is our common goal. Sincerely,
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(io ernor MattIie H. Mead \kyom ing

(lovernor Robert J. l3entlev Alabama

Governor Ferry E. l3ranstad Iowa

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(Jovernor sean Farneli Alaska Governor S am irownback Kansas

(iovernor Janice K. Brewer Aiiona

Governor l3obbv J indal lou siafla

Governor Haley Barbour Mississippi

Governor Nikki Haley South Carolina

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Governor Jack Dairymple North Dakota

Governor Dennis Daugaard South Dakota

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Governor John R. Kasich Ohio Governor Gary R. Herbert Utah

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Governor Mary Fallin Oklahoma Governor Robert F. McDonnell Virginia

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Governor Tom Corbett Pennsylvania

Governor Scott Walker Wisconsin

CC: The Honorable Lisa Jackson, Administrator, United States Environmental Protection Agency