July 2011 eNews
Carbon Trading Programs Struggle -- Remain Optimistic
Tina McIntyre, TXI Riverside Cement
Carbon trading in general has also had its share of challenges. In May 2011, New Jersey pulled out of the Regional Greenhouse Gas Initiative (RGGI) – a regional trading house for carbon credits whose members include 10 Northeastern states.
New Jersey's governor Chris Christie said the program's allowances were never expensive enough to change behavior, and that New Jersey has brought its carbon emissions below its 2020 goal as a result of market forces rather than cap-and-trade. Any benefits from the RGGI tax will also now be miniscule in comparison to those from New Jersey’s incentives for wind, solar and natural gas generation, Christie said.
New Hampshire and Delaware may follow suit; however, RGGI experts feel that this is a minor set back to the initiative. Point Carbon's Emilie Mazzacurati states that that "longer term outlook is not necessarily negative."
Should California's cap-and-trade program succeed, carbon allowances will be traded on the Western Climate Initiative (WCI). WCI's members include several Western states as well as most Canadian provinces.
The National Resource Defense Council states, "These groundbreaking policies are driving down pollution, improving public health, creating new economic and job opportunities, and positioning California as a global leader in the push for clean energy solutions."
Where Are We Headed?
The current political arena has put climate change on the proverbial
back-burner. But regulators continue to use existing laws and will
continue to develop new standards that will limit the emissions of GHGs.
The Portland Cement industry is facing several new significant air quality regulations under consideration by U.S. EPA. These include updates to:
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New Source Performance Standard for Portland Cement Plants (NSPS Subpart F)
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National Emission Standards for Hazardous Air Pollutants for Portland Cement Plants (NESHAP Subpart LLL) also known as the Portland Cement MACT
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Proposed revisions to the NSPS for Nonmetallic Mineral Processing Plants (Subpart OOO) and NSPS for Coal Preparation Plants (Subpart Y)
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Greenhouse gas (GHG) reporting rule
The NSPS Subpart F requirements are significant because they will, for the first time, regulate NOx and SO2 from new and modified cement kilns - an example of how GHGs will be regulated in the future.
Plan for Change
The climate change battle will be a long one, and the debate over whether
GHGs are to blame may never be won. The reality is that an air
permit is required to operate, and there are existing rules that allow
the regulators to limit emissions of GHGs.
The initial impact is affecting large sources such as power companies, refineries, and specific industries. But all industries will be impacted in one way or another, whether it is from the higher cost of utilities, transportation, or raw materials. It will also mean possible delays in permitting for new facilities or for major modifications on equipment that was previously not considered a source.
Ignoring the battle or waiting for a resolution is not the best strategy; it may have already impacted your business.
next sma meeting - september 15, 2011 SMA Cocktail Networking Social for the Building
Industry next sma dinner meeting - November 17, 2011 Recovering from the Recovery: What Next for
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