On June 10, 2015, EPA proposed an endangerment finding that it calls "a preliminary but necessary first step to begin to address GHG emissions from the aviation sector" under the Clean Air Act ("CAA"). EPA also issued an Advance Notice of Proposed Rulemaking ("ANPR") proposing domestic adoption of the forthcoming International Civil Aviation Organization ("ICAO") rules, which are expected in February 2016. The proposed finding that greenhouse gas ("GHG") emissions from certain classes of aircraft engines contribute to climate change and endanger public health and welfare is in response to a citizen petition and exempts military and smaller aircraft, including most private aircraft.

It is not clear from the finding whether EPA is seeking to regulate only domestic operators or whether it will also attempt to regulate international parties operating in the United States. While the Obama administration likely will not have time to promulgate regulations before leaving office, once EPA finalizes the endangerment finding, the CAA requires the new administration's EPA to issue standards of some kind regulating aircraft emissions from the identified classes of engines. There has been industry concern that, because EPA must act on a finalized endangerment finding, if ICAO fails to meet its February 2016 deadline, EPA will be forced to promulgate its own rules, possibly leading to the piecemeal regulation ICAO's international efforts seek to avoid.

The aviation industry has been proactive in reducing carbon emissions. The International Air Transport Association ("IATA"), the world's largest aviation trade group, has set goals to stabilize net carbon dioxide emissions by 2020 and halve carbon dioxide emissions by 2050. In the area of technology, IATA believes that aviation biofuels can reduce carbon dioxide emissions by up to 80 percent over their full lifecycle. In the area of operations efficiency, Boeing, Alaska Airlines, the Port of Seattle, and FAA have worked together on the Greener Skies over Seattle program to reduce emissions by improving flight protocols, with the goal of using these protocols as a template for improving efficiency across the United States.

In its call for input, EPA is taking comment on when carbon standards should take effect, how stringent they should be, and whether standards should apply only to newly designed aircraft or to designs already in production. Comments are due by August 31, 2015, at 11:59 p.m., EST. A public hearing will be held in Washington, D.C. on August 11, 2015.

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