By Tom Doggett
WASHINGTON, Aug 27 (Reuters) - The Bush Administration is set to rule that carbon dioxide is not an air pollutant and that the federal government has no authority to regulate emissions linked to global warming, an environmental group said on Wednesday.
The decision would be a big win for automakers producing high fuel consumption vehicles, such as SUVs, and utilities that operate coal-burning power plants, which collectively account for 60 percent of U.S. carbon dioxide emissions.
The Environmental Protection Agency could announce the new policy as early as Thursday, according to the Natural Resources Defense Council.
"It's another huge favor for the Bush administration's big polluter contributors," said David Doniger, policy director of the NRDC's climate center.
"It seems like the Bush White House would say anything for its friends. They would even call a blue sky green," said Doniger, who was told by EPA staff about the agency's imminent decision.
Doniger said the federal Clean Air Act says an air pollutant is defined as any chemical or physical substance that is thrown into the air by human sources -- such as factories or vehicles.
"The EPA is required to regulate any air pollutant which may reasonably be anticipated to endanger public health or welfare," he said.
But Jeff Holmstead, who is EPA's assistant administrator for air quality, said the Clean Air Act was not designed to address global warming.
"I don't think it's our place to be looking for creative interpretations of an act to deal with a major policy issue like this before Congress has spoken with it," he told Reuters.
Holmstead said the agency is reviewing a petition from an environmental group to regulate carbon dioxide emissions produced by automobiles.
He would not speculate on when the EPA would issue a decision on the petition, but said it could "possibly" happen this week.
"We're pretty close to having it done and our response could come out soon," Holmstead added.
Environmental groups have been urging the Bush administration to regulate carbon dioxide emissions and do more to fight global warming.
President George W. Bush angered green groups and the European Union after he withdrew the United States from the international Kyoto treaty that aims to reduce global warming emissions mostly among industrialized countries.
Bush said he was worried the treaty's tough requirements would harm the U.S. economy and instead promoted voluntary efforts by American firms to cut their emissions.
The administration has also said there was no sound scientific proof on what causes global warming and has proposed spending millions of dollars over the next decade to study the issue.
Power plants produce about 40 percent of U.S. carbon dioxide emissions, while passenger cars, pickups trucks and SUVs account for another 20 percent.