Preview Newsletter
ACC AM 7/28/16
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(ACC Mentioned) Global CPRI Eends 2nd Quarter On Soft Note, ACC Says
Jul 27, 2016 | Chemical Engineering
The American Chemistry Council’s (ACC; Washington, D.C.; www.americanchemistry.com) Global Chemical Production Regional Index (Global CPRI) shows that the second quarter ended on a soft note, with the headline index rising only 0.1 percent on a three-month moving average (3MMA) basis in June. -
(ACC Mentioned) Study Finds Significant Savings With Plastics Use
Jul 27, 2016 | Recycling Today
By Recycling Today Staff
A new study by the environmental research group Trucost, London, commissioned by the American Chemistry Council (ACC), Washington, D.C., finds that the environmental cost of using plastics in consumer goods and packaging is nearly four times less than it would be if plastics were replaced with alternative materials. -
Composite Wood's Formaldehyde Emissions in Final EPA Rule
Jul 28, 2016 | BNA Daily Environment Report
By Pat Rizzuto
Formaldehyde emissions from composite wood products will be limited under a final rule the Environmental Protection Agency released July 27. -
EPA Grants Limited Waiver In Final Formaldehyde Wood Emissions Rule
Jul 27, 2016 | Inside EPA
By Bridget DiCosmo
EPA in its recently filed response to comments on its effluent limitation guideline for shale oil and gas wastewater is refuting industry claims that its failure to consider crafting mandatory pretreatment pollutant limits when it opted for an effective ban on indirect discharges of the sector's effluent violated the Clean Water Act (CWA), saying it found pretreatment limits infeasible. -
First PFOA-Related Lawsuit Over Hoosick Falls Filed
Jul 28, 2016 | BNA Daily Environment Report
By Gerald B. Silverman
The first personal injury lawsuit resulting from water contamination in Hoosick Falls, N.Y., was filed in federal court July 27, seeking damages of at least $2.5 million from Saint-Gobain Performance Plastics Corp. and Honeywell International Inc. (Donavan v. Saint-Gobain Performance Plastics Corp., N.D.N.Y., No. 1:16-cv-00924-LEK-DJS, 7/27/16). -
(ACC Blog) Sustainable Construction Starts With An Efficient Building Envelope
Jul 27, 2016 | American Chemistry Matters
By Justin Koscher
Constructing energy-efficient homes and buildings has become standard practice across the Southeast, benefiting both the environment and consumers. https://blog.americanchemistry.com/2016/07/sustainable-construction-starts-with-an-efficient-building-envelope/ -
Clean Power Plan Costs Low, Study Says
Jul 28, 2016 | BNA Daily Environment Report
Complying with the Environmental Protection Agency's Clean Power Plan will be relatively inexpensive, increasing costs by less than a percentage point, according to an analysis by the Nicholas Institute for Environmental Policy Solutions at Duke University. -
Clinton Wants To End ‘Halliburton Loophole’ On Fracking, Adviser Says
Jul 27, 2016 | The Hill - E2 Wire
By Timothy Cama
Presidential hopeful Hillary Clinton would push Congress to reverse a 2005 measure that exempts hydraulic fracturing from certain federal environmental standards, a top adviser said. -
America’s Shale Gas Heads to East Asia for First Time
Jul 28, 2016 | Bloomberg
By Harry Weber and Naureen Malik
East Asia, which imports more liquefied natural gas than any other region of the world, is preparing to receive its first supplies from America’s shale bounty. -
Updated Panama Canal Opens Premium Asian Markets To US LNG
Jul 28, 2016 | Platts
By Chris Pedersen
It has been quite a year for the US LNG industry. In February, Cheniere’s Sabine Pass LNG terminal exported the continental US’ first commercial cargo of LNG. -
Chemical Rules' Worker Safety Parts Updated: EPA Proposal
Jul 28, 2016 | BNA Daily Environment Report
By Pat Rizzuto
The Environmental Protection Agency will present plans to update the worker safety provisions of its new chemical rules, under a regulation it proposed July 27. -
Railroads Must Switch Cargo to Rivals Under Proposed U.S. Rule
Jul 28, 2016 | Bloomberg
By Thomas Black
The U.S. Surface Transportation Board proposed a rule Wednesday allowing shippers to switch cargo among large railroads if there’s reasonable access to competing tracks. -
New Regs for Thursday: Railroads, Utilities, Disadvantaged Businesses
Jul 27, 2016 | The Hill - Regulation
By Tim Devaney
Railroads: The Surface Transportation Board is backing down from new rules for railroads. -
PHMSA Seeks Comments On Hazmat Insurance Study
Jul 27, 2016 | Progressive Rail Roading
The U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) is soliciting comments on the levels and structure of insurance for railroads that transport hazardous materials, the agency announced Monday. -
Cities Turn To Local Action To Block Oil Trains
Jul 27, 2016 | AP (In Fuel Fix)
As crude oil trains began rolling through its downtown a few years ago, Spokane was among the first cities to pass a resolution calling for stronger federal safety regulations. -
(ACC Mentioned) Plastics On The Move: New Specs for Recycling Auto Bumpers; Benefits of Lightweighting in Auto Industry
Jul 27, 2016 | Plastics Today
By Clare Goldsberry
The Institute of Scrap Recycling Industries (ISRI; Washington, DC) Board of Directors recently approved the addition of an auto bumper plastics specification to the Scrap Specifications Circular .As per ISRI’s Policy Manual, any party may submit to ISRI a written appeal of the board’s approval of this new specification up to 30 days after publication of the notice. Written appeals must provide a rationale and a request for action and should be sent to ISRI President Robin Wiener. -
State Plans Violate ‘Bedrock' Clean Air Principles, EPA Says
Jul 28, 2016 | BNA Daily Environment Report
By Patrick Ambrosio
The EPA later changed its determination following a 2014 U.S. Court of Appeals for the District of Columbia Circuit ruling that the Clean Air Act did not provide the agency with the authority to include an affirmative defense in national hazardous air pollution standards for cement kilns (NRDC v. EPA, 749 F.3d 1055, 2014 BL 108218, 78 ERC 1369 (D.C. Cir. 2014)). -
Poll Finds Californians Back Climate Change Efforts Despite Cost
Jul 27, 2016 | The Sacramento Bee
By Jeremy B. White
Climate change policies appeal to a majority of Californians despite the possibility of higher energy costs, a new Public Policy Institute of California poll has found.
Industry and Association News
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Environment News
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(ACC Mentioned) Global CPRI Eends 2nd Quarter On Soft Note, ACC Says
Jul 27, 2016 | Chemical Engineering
The American Chemistry Council’s (ACC; Washington, D.C.; www.americanchemistry.com) Global Chemical Production Regional Index (Global CPRI) shows that the second quarter ended on a soft note, with the headline index rising only 0.1 percent on a three-month moving average (3MMA) basis in June. During June, chemical production increased in Western Europe, Central & Eastern Europe, Africa & the Middle East, and Asia-Pacific. Production fell in North America and Latin America. The Global CPRI was up 2.1 percent year-over-year (Y/Y) on a 3MMA basis and stood at 108.5 percent of its average 2012 levels in June.
During June, capacity utilization in the global business of chemistry declined 0.2 percentage points to 79.2 percent. This is off from 80.7 percent last June and is below the long-term (1987-2015) average of 89.1 percent.
Results were mixed on a product basis during June. Weakness in the production of consumer products, organic chemicals, synthetic rubber and other specialties was offset by gains in pharmaceuticals, agricultural chemicals, consumer products, inorganic chemicals, plastic resins, manufactured fibers and coatings. Considering year-over-year comparisons, chemical production increased in most categories with the exception of agricultural chemicals. Growth was strongest in plastic resins followed by organic chemicals, other specialty chemicals, and consumer products.
ACC’s Global CPRI measures the production volume of the business of chemistry for 33 key nations, sub-regions, and regions, all aggregated to the world total. The index is comparable to the Federal Reserve Board (FRB) production indices and features a similar base year where 2012=100. This index is developed from government industrial production indices for chemicals from over 65 nations accounting for about 98 percent of the total global business of chemistry. This data are the only timely source of market trends for the global chemical industry and are comparable to the U.S. CPRI data, a timely source of U.S. regional chemical production.
http://www.chemengonline.com/global-cpri-ends-2nd-quarter-on-soft-note-acc-says/
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(ACC Mentioned) Study Finds Significant Savings With Plastics Use
Jul 27, 2016 | Recycling Today
By Recycling Today Staff
A new study by the environmental research group Trucost, London, commissioned by the American Chemistry Council (ACC), Washington, D.C., finds that the environmental cost of using plastics in consumer goods and packaging is nearly four times less than it would be if plastics were replaced with alternative materials.
The Trucost study based its findings on natural capital accounting methods, which measure and value environmental impacts such as consumption of natural water and emissions to air, land and water, which are not typically factored into traditional financial accounting.
The study, titled Plastics and Sustainability: A Valuation of Environmental Benefits, Costs, and Opportunities for Continuous Improvement, builds on earlier research by comparing the environmental costs of using plastics to alternative materials and identifying opportunities to help lower the environmental costs of using plastics in consumer goods and packaging.
“Although alternative materials such as glass, tin, aluminum and paper are viable alternatives to plastic in many consumer goods applications, they have higher environmental costs in the quantities needed to replace plastic. Trucost estimates that substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs from $139 billion to a total of $533 billion. In most cases the environmental cost per kilogram of alternative material is less than that of plastic. However, on average over four times more alternative material is needed (by weight) to perform the same function.
For example, a typical plastic soft drink bottle contains 30 grams of plastic. But if replaced by a weighted average mix of alternative materials currently used in the market, an equivalent capacity bottle would require 141 grams of alternative materials such as glass, tin or aluminum in the United States. Extrapolating to the entire consumer goods sector, more than 342 million metric tons of alternative material would be needed to replace the 84 million metric tons of plastic used in consumer products and packaging in 2015.
The study also concluded that the environmental costs of alternative materials can be lower per ton of production, but are greater in aggregate due to the much larger quantities of material needed to fulfill the same purposes as plastics.
In addition, the report’s authors recommend steps to help further reduce plastics’ overall environmental costs, such as by increasing the use of lower-carbon electricity in plastics production, adopting lower-emission transport modes, developing even more efficient plastic packaging and increasing recycling and energy conversion of post-use plastics to help curb ocean litter and conserve resources.
“We are very excited to present Plastics and Sustainability, the largest natural capital study ever conducted for the plastics manufacturing sector,” says Libby Bernick, senior vice president North America for Trucost. “This report provides the clearest picture to date of the relative costs and benefits of plastics compared to alternative materials as well as important opportunities to enhance the environmental performance of using plastics in consumer goods.”
“We now have a fuller picture of the environmental benefits of using plastics,” notes Steve Russell, vice president of plastics for the ACC, which commissioned the study. “From lighter, more fuel-efficient cars to smart packaging that helps our favorite foods last longer, our industry is committed to ongoing innovations that will advance sustainability across major market sectors and the globe.”
"Now is an exciting time for plastics and for sustainability. Emerging economies around the world are creating opportunities for more people to have access to health and hygiene products, good nutrition and the things that help us get more out of life. Making smart choices about what we produce and how we produce it will benefit people and the planet,” Russell adds.
“By leading in innovation and performance, the world’s plastics industry has demonstrated its ongoing commitment to help create a more sustainable future,” says Jeff Wooster, global sustainability director for Dow Packaging and Specialty Plastics and chair of ACC’s Packaging Team. “This report provides a new tool to explore opportunities to further enhance plastics’ environmental performance with brand owners, shippers, recyclers and other value chain partners.”
http://www.recyclingtoday.com/article/trucost-plastics-savings/
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Composite Wood's Formaldehyde Emissions in Final EPA Rule
Jul 28, 2016 | BNA Daily Environment Report
By Pat Rizzuto
Formaldehyde emissions from composite wood products will be limited under a final rule the Environmental Protection Agency released July 27.
The rule (RIN 2070-AJ44) applies to companies that make plywood, medium-density fiberboard and particleboard. Manufacturers will be required to comply with the rule's requirements within one year.
Some recordkeeping and other rule provisions apply to importers, distributors and retailers, which includes dealers selling recreational vehicles, mobile homes and building materials.
The final rule—effective Sept. 26—is largely consistent with 2009 limits that California's Air Resources Board began to phase in. The state's current limits range from 0.05 part per million (ppm) to 0.13 ppm, depending on the product covered.
Some provisions of EPA's regulation go beyond what California required.
Some Laminators Covered
For example, EPA requires that records be kept for three years compared to the two years required for products sold in California. The EPA also will require importers to provide certification of their compliance with the rule within two years and the agency requires manufacturers to disclose emissions test results to their direct purchasers upon request.
Finally, companies that make or import laminated hardwood plywood products are not automatically exempt, as they have been from California's requirement. Some laminators will qualify for exemptions in the EPA's rule, while others must comply within seven years.
Congress required the EPA to develop this rule in 2010 when it passed the Formaldehyde Standards for Composite Wood Products Act (Pub. L. No. 111-199).
The law, which added Title VI to the Toxic Substances Control Act, required the agency to issue implementing regulations by July 1, 2013.
Industry objections to the EPA's plan to cover laminators in its final rule and concerns raised by importers were among the reasons the agency said it was unable to meet its 2013 deadline.
Lamination Provisions Concern Panel Association
Jackson Morrill, president of the Composite Panel Association, said in a statement that, “While we are pleased that the U.S. EPA finalized the Formaldehyde Standards for Composite Wood Products regulation, we are concerned with certain provisions such as those related to resins used in laminated products. We will be reviewing the rule more closely in the coming days.”
Morrill spoke with Bloomberg BNA July 22 anticipating the rule's release.
At that time, he said the association, which has long supported nationwide formaldehyde emissions limits, wanted the EPA to enforce the standards it would set to assure consumers that the products they buy for their homes and offices do meet tough formaldehyde emissions standards.
Enforcing emissions requirements on imported products will be particularly important, Morrill said.
Health Concerns, Past Exposures Underlie Limits
EPA's rule addresses formaldehyde, which can irritate the skin, eyes, nose and throat following short-term, relatively low exposures. High exposures may cause some cancers, the agency said.
The National Toxicology Program has classified formaldehyde as a known human carcinogen.
Congress passed the law requiring nationwide emissions limits after Hurricane Katrina hit the Gulf Coast causing displaced victims to live in trailers that released high levels of formaldehyde.
A nationwide outcry to limit formaldehyde emissions arose again in 2015 following a 60 Minutes report that alleged Lumber Liquidators Inc.'s China-made laminated wood flooring exceeded California's limits. In March Lumber Liquidators agreed to pay $2.5 million as part of an administrative settlement with the California Air Resources Board.
Compliance Begins in One Year
After the EPA's rule is published, most companies will have one year to certify their products as compliant with the national emissions limits.
The tests to secure certification must be carried out by third-party independent accreditation boards.
Seven years after the final rule is issued, laminated product producers must perform quality control tests to show their products comply. Laminators may be partly exempted if they attach a wood or woody grass veneer to hardwood plywood by using certain glues, or “resins,” such as adhesives made without added formaldehyde. Exempted laminators must be able to document their use of such glues.
http://news.bna.com/deln/DELNWB/split_display.adp?fedfid=94693494&vname=dennotallissues&fn=94693494&jd=94693494
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EPA Grants Limited Waiver In Final Formaldehyde Wood Emissions Rule
Jul 27, 2016 | Inside EPA
By Bridget DiCosmo
EPA in its recently filed response to comments on its effluent limitation guideline for shale oil and gas wastewater is refuting industry claims that its failure to consider crafting mandatory pretreatment pollutant limits when it opted for an effective ban on indirect discharges of the sector's effluent violated the Clean Water Act (CWA), saying it found pretreatment limits infeasible.
The agency in its recently released final ELG for unconventional, or shale, oil and gas wastewater set a zero discharge standard for discharges to publicly owned treatment works (POTW), saying the measure is necessary to curb the potential for facilities to consider discharging to POTWs in the future, though the practice has largely ceased prior to the rule.
But the agency is pushing back on claims that "EPA either ignored or overlooked mandatory prerequisites to promulgating pretreatment standards, and instead opted for a pretreatment ban that conflicts with the CWA," saying ina response to comments document, dated June 28 but only recently made publicly available, that the agency examined the various constituents in oil and gas wastewater and determined that pretreatment limits were not feasible.
"To the contrary, EPA's pretreatment standard specifically meets Congress' objective of ensuring that the pollutant removals by the combination of indirect dischargers and POTWs is equivalent to that of direct dischargers -- which achieve removals of 100% through zero discharge requirements." EPA says in the document. The agency says it did consider the capability of POTWs to remove such pollutants, but found inadequate support to find that POTWs can routinely treat all of the pollutants common in shale oil and gas wastewater, and "certainly none that would achieve removals of 100%."
EPA also disagrees that the rule violates the CWA, saying the water law only requires that the agency set pretreatment requirements at a level that is consistent with that applicable to direct dischargers, is both technologically available and economically achievable and does not present a barrier to entry for new sources based on current practice within the industry.
"To the extent that the commenter is arguing that the technology bases for the zero discharge requirements do not constitute 'treatment,' EPA notes that there is nothing in the CWA that limits candidate technology options to those that treat pollutants in the wastewater and allow discharge." The document argues that a zero discharge standard is a permissible option under the CWA and that the agency considered other available technology options, such as underground injection in disposal wells, recycle, and reuse, that would limit the wastewater pollutants sent to POTWs.
Pretreatment Limits
Some portions of the oil and gas industry would have liked to see EPA develop pretreatment limits for constituents in the sector's wastewater so it could be treated at municipal treatment plants as opposed to the agency's final decision to issue a zero discharge standard for the sector, an energy official said recently.
Kate Fay, director of environmental and regulatory policy at Noble Energy, told state officials July 21 that among some in industry there "was a desire to pursue an effective performance standard to pretreat water" so it could be manged by POTWs because they saw "an opportunity to add to the pie of options" for disposing of the sector's wastewater. "That may not have been fully explored as much as we'd hoped," Fay told the Environmental Council of the States (ECOS) during their annual STEP meeting in Washington, D.C.
The final rule was aimed at ensuring that POTWs do not start receiving wastewater from the sector in the future, though EPA acknowledged that the practice had largely ceased.
"Certain [unconventional oil and gas] extraction wastewater constituents are not typical of POTW influent wastewater and can be discharged, untreated, from the POTW to the receiving stream; can disrupt the operation of the POTW (e.g., by inhibiting biological treatment); can accumulate in biosolids (sewage sludge), limiting their beneficial use; and can facilitate the formation of harmful disinfection by-products (DBPs)," the agency says in the rule.
EPA says that because the rule reflects current industry practice, it does not expect that the rule will impose any new costs or lead to any pollutant reductions, but that it will ensure that the best practice is maintained for the industry.
The POTW issue drew particular concern in the Marcellus Shale region, largely due to challenges such as a lack of effluent limits for pollutants unique to the sector and Pennsylvania's geological constraints that limit the number of underground disposal wells -- EPA's preferred method of disposal of the sector's wastes.
Industry groups in public comments on the proposed version of the rule said that the agency did not complete the extensive analysis required under section 304 of the CWA and urged the proposal's immediate withdrawal.
Despite EPA's assurance that the proposal will not result in costs to industry because the agency did not identify any operators currently discharging to POTWs, industry warned that the rule would permanently remove a potentially viable wastewater management option for the sector.
http://insideepa.com/daily-news/epa-grants-limited-waiver-final-formaldehyde-wood-emissions-rule
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First PFOA-Related Lawsuit Over Hoosick Falls Filed
Jul 28, 2016 | BNA Daily Environment Report
By Gerald B. Silverman
The first personal injury lawsuit resulting from water contamination in Hoosick Falls, N.Y., was filed in federal court July 27, seeking damages of at least $2.5 million from Saint-Gobain Performance Plastics Corp. and Honeywell International Inc. (Donavan v. Saint-Gobain Performance Plastics Corp., N.D.N.Y., No. 1:16-cv-00924-LEK-DJS, 7/27/16).
The lawsuit alleges that contamination by perfluorooctanoic acid (PFOA) caused the plaintiff, Hoosick Falls resident James Donavan, to have ulcerative colitis and other illnesses. It also alleges that the value of Donavan's home declined significantly since the area was declared a state Superfund site.
Saint-Gobain and Honeywell have current or former plants in the town and have been named as potentially responsible parties by the state for the water contamination in Hoosick Falls.
The suit was filed days after Gov. Andrew M. Cuomo (D) signed a bill to extend the statute of limitations tolling in these types of cases and five months after Hoosick Falls residents filed a class action lawsuit against the two companies. Both the class action and personal injury suits were filed by the firm Weitz & Luxenberg.
Honeywell Comments
Victoria Streitfeld, a spokeswoman for Honeywell, said the company is reviewing the lawsuit.
“We are working under the supervision and at the direction of the New York State Department of Environmental Conservation to address groundwater contamination in Hoosick Falls,” she told Bloomberg BNA in an e-mail.
“Investigations have begun already at two properties where perfluorooctanoic acid (PFOA) may have been used during former manufacturing activities,” she said. “We also are working with Saint-Gobain to investigate two other properties.”
Honeywell's predecessor, AlliedSignal Laminate Systems Inc., operated in Hoosick Falls between 1986 and 1996.
Saint-Gobain declined to comment on the suit.
Negligence Alleged
The Donavan lawsuit claims negligence and gross negligence by the two companies and seeks compensatory damages of at least $2.5 million for medical costs, pain and suffering, loss or diminution of property value and other damages. The suit also seeks punitive damages.
The suit alleges that the companies disposed of PFOA “in a manner that guaranteed that PFOA would enter the environment, including the groundwater.” It also alleges that the companies knew or should have known that disposal of PFOA “posed a threat of significant danger to the environment and to the health and well-being” of Hoosick Falls residents.
http://news.bna.com/deln/DELNWB/split_display.adp?fedfid=94693485&vname=dennotallissues&fn=94693485&jd=94693485
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(ACC Blog) Sustainable Construction Starts With An Efficient Building Envelope
Jul 27, 2016 | American Chemistry Matters
By Justin Koscher
Constructing energy-efficient homes and buildings has become standard practice across the Southeast, benefiting both the environment and consumers. In addition to reducing greenhouse gas emissions associated with energy consumption, an energy-efficient home can reduce families’ utility bills and improve indoor comfort. Delivering this performance begins with an efficient building envelope.
Spray polyurethane foam (SPF) insulation is effective in providing long-lasting thermal protection and helps seal homes which can lose as much as 40 percent of heating and cooling energy through cracks and gaps in the building envelope. SPF can be used to insulate and act as a barrier against air leaks in common spots including walls, attics, floors, rim joists, crawl spaces, and areas around doors and windows. By creating a sound building envelope, which shields the home’s living areas from the outdoor environment, SPF insulation increases home energy-efficiency.
The benefits of an efficient building envelope extend beyond energy savings. SPF insulation guards against moisture intrusion in hot-humid climates, which protects indoor environments from mold growth. Protecting the home from the outdoor environment also can improve the durability of the building structure. Certain types of SPF insulation have been shown to improve the strength of walls and roofs, which can be especially important for homes built in areas susceptible to high-wind (and earthquake) events.
Building envelope measures deliver consistent performance and savings and are more easily incorporated into a home or building during construction. Utilizing building envelope measures so that the home wastes less energy and allows builders and homeowners to use smaller HVAC systems. Code officials can inspect the building envelope to give consumers confidence that the home is built to comply with code requirements and will perform as designed. The message is clear – efficiency measures like SPF insulation can reduce energy use and improve indoor comfort day and night.
SPF is an effective and valuable way to deliver long-lasting performance. To learn more about SPF insulation and its wide-ranging benefits, drop by the Spray Foam Coalition’s booth #813 at the Southeast Building Conference (SEBC) from July 28-29!
https://blog.americanchemistry.com/2016/07/sustainable-construction-starts-with-an-efficient-building-envelope/
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Clean Power Plan Costs Low, Study Says
Jul 28, 2016 | BNA Daily Environment Report
Complying with the Environmental Protection Agency's Clean Power Plan will be relatively inexpensive, increasing costs by less than a percentage point, according to an analysis by the Nicholas Institute for Environmental Policy Solutions at Duke University.
The study, released July 27, said low natural gas prices will help keep down compliance costs with carbon dioxide standards for existing power plants (RIN:2060-AR33) and expanded use of energy efficiency measures to lower power demand will help keep compliance costs low. Energy efficiency measures that decrease electricity demand by 1.5 percent a year over the life of the Clean Power Plan would make the rule's compliance costs “close to zero,” the study said.
The study also said the price allowances under mass-based plans that would cap total emissions from the power sector in each state or credits under rate-based plans that set a limit on the amount of carbon dioxide per megawatt-hour of electricity generated would be low as well. The study projected that allowances under a mass-based plan would be approximately $7 a ton in 2030 if states choose to regulate only existing power plants, or $15 a ton if new natural gas units were included in any trading plans as well. Under rate-based plans, emissions rate credits would be $15 a megawatt-hour by 2030.
http://news.bna.com/deln/DELNWB/split_display.adp?fedfid=94693479&vname=dennotallissues&fn=94693479&jd=94693479
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Clinton Wants To End ‘Halliburton Loophole’ On Fracking, Adviser Says
Jul 27, 2016 | The Hill - E2 Wire
By Timothy Cama
Presidential hopeful Hillary Clinton would push Congress to reverse a 2005 measure that exempts hydraulic fracturing from certain federal environmental standards, a top adviser said.
Ending what environmentalists call the “Halliburton loophole” would be the Democratic candidate’s first priority in regulating fracking, adviser Trevor Houser said.
“Congress stripped [the Environmental Protection Agency] of its authorities to protect communities under the Safe Drinking Water Act, something called the ‘Halliburton loophole,’ ” Houser said Wednesday at a Politico event coinciding with the Democratic National Convention in Philadelphia.
“We give EPA, under our landmark environmental laws, the ability to protect communities from environmental threats,” he said. “And there should not be a big exemption when it comes to hydraulic fracturing. So that’s our primary focus, on getting that loophole closed and reinstating that authority.”
Clinton said at a March debate that while she would not seek to ban fracking, she would seek strict new regulations on the oil and gas drilling technique.
“By the time we get through all of my conditions, I do not think there will be many places in America where fracking will continue to take place,” she said at the time.
Sen. Bernie Sanders (I-Vt.), her main opponent for the Democratic presidential nomination, said he would seek to ban fracking, and often criticized Clinton for her refusal to make a similar pledge.
The Energy Policy Act of 2005 exempted the fracking process itself — injecting fluids into oil and natural gas wells to break shale rock formations — from the Safe Drinking Water Act’s provisions regarding underground injection.
It’s labeled the “Halliburton loophole” after the oilfield services company that then-Vice President Dick Cheney led before he came into office.
While it blocks a major authority the EPA would have over fracking, the agency can still use the Clean Water Act, the Clean Air Act and other laws to oversee the process in certain circumstances.
Houser conceded that with Republicans likely to retain control of at least the House, any legislative action on fracking would probably be difficult.
Clinton would therefore use her executive authority to crack down on earthquakes, methane releases and other effects of fracking.
“Certainly on seismicity, on methane regs, there are existing authorities that can be used,” Houser said. “We’re going to use every authority that we have to ensure that local communities are protected.”
The oil and natural gas industry disagrees strongly with the characterization of the 2005 law as a “loophole,” and is seeking to protect it, arguing that EPA regulation would be duplicative and burdensome.
http://thehill.com/policy/energy-environment/289475-clinton-wants-to-end-halliburton-loophole-on-fracking-adviser-says
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America’s Shale Gas Heads to East Asia for First Time
Jul 28, 2016 | Bloomberg
By Harry Weber and Naureen Malik
East Asia, which imports more liquefied natural gas than any other region of the world, is preparing to receive its first supplies from America’s shale bounty.
A tanker that loaded liquefied natural gas at Cheniere Energy Inc.’s export terminal in Louisiana is bound for the Far East, according to an official at tanker owner Maran Gas Maritime Inc. who asked not to be identified because he isn’t authorized by the company to speak on the record. The company that chartered the vessel, Royal Dutch Shell Plc, has yet to say exactly which country and buyer will receive the cargo, he said.
The shipment to East Asia is a long time coming for a market once pegged as the most likely destination for U.S. shale gas. Instead, most of the cargoes that have left Cheniere’s LNG terminal since exports began in February have landed in closer-by Latin America. An expansion of the Panama Canal stands to change that, with more than half of U.S. LNG export capacity slated to be online by 2020 contracted to Asian buyers, based on a Bloomberg New Energy Finance analysis.
For a QuickTake explainer on liquefied natural gas, click here.
“The Panama Canal opens an entirely new transit route for Asia, rather than going around South Africa or the Horn,” Ted Michael, an LNG analyst for energy data provider Genscape Inc., said by telephone from Boulder, Colorado. “We will see more of this in the future.”Panama Canal
The Asia-bound tanker, Maran Gas Apollonia, was in the Pacific Ocean on Wednesday after becoming the first LNG carrier to pass through the newly expanded Panama Canal locks, shipping data compiled by Bloomberg show.
Shell spokeswoman Natalie Mazey declined to comment, while Cheniere didn’t immediately respond to a request seeking comment.
Demand in Asia may have as many as 550 LNG tankers a year passing through the Panama Canal from the U.S. Gulf Coast by 2021 as the recent expansion cuts shipping times and costs, according to the U.S. Energy Information Administration.
For U.S. exports to Asia to really take off in the near-term, the arbitrage between gas prices in the Pacific Basin and the Atlantic Basin will need to widen, according to Michael. "A couple of years ago, there was a $5 spread," he said. "Today, it is about 50 cents."
Of the tankers that have left Cheniere’s Sabine Pass terminal, more than half have gone to South America, including Brazil, Argentina and Chile. The only cargo to have landed in Asia went to India. Dubai, Kuwait and Spain have also received shipments.
Cheniere’s marketing unit has contracts to supply gas from the company’s first liquefaction plant to Japan’s Kansai Electric Power Co. and Chubu Electric Power Co., according to Poten & Partners.
https://www.bloomberg.com/news/articles/2016-07-27/america-s-shale-gas-is-heading-to-the-far-east-for-first-time
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Updated Panama Canal Opens Premium Asian Markets To US LNG
Jul 28, 2016 | Platts
By Chris Pedersen
It has been quite a year for the US LNG industry. In February, Cheniere’s Sabine Pass LNG terminal exported the continental US’ first commercial cargo of LNG. Since February, Cheniere’s Train 1 at Sabine Pass, the only fully commissioned operating US LNG export terminal, has exported 19 cargoes to eight different nations on three continents. While South America has so far received more US LNG cargoes than any other region, the re-opening of the newly expanded Panama Canal could drive new competition from North Asian markets.
While many expected the majority of Cheniere’s cargoes to end up on Europe, ten of the first 16 cargoes (three are out at sea) have delivered into South America, specifically Brazil, Chile and Argentina. Only two cargoes have delivered into Europe.
Cheniere’s first cargo was delivered to Rio de Janeiro, Brazil’s furthest regasification terminal from Sabine Pass. Depending on what terminal you deliver into Brazil, shipping a cargo of LNG from the US Gulf Coast can take between 11 and 16 days. Delivery into either of Argentina’s two terminals takes roughly 21 days.
The expanded Panama Canal will allow US LNG producers to deliver their cargoes to select destinations in South America and Asia faster and cheaper. Chile is a good example: when travelling around the southern tip of South America, an LNG vessel departing from Sabine Pass must travel 9,507 nautical miles over 30 days to deliver into Chile’s Mejillones terminal. Through the Panama Canal, the trip is cut down to just 3,607 nautical miles, lasting about 11 days.
A shorter trip to North Asia through the Panama Canal means South American LNG importers will now face new competition for US LNG supply. Before the opening of the Panama Canal, the idea of sending a cargo of US LNG to North Asia seemed like a pretty far off idea. Via the Suez Canal, a US Gulf Coast laden LNG vessel must travel around 47 days and 14,500 miles to reach Tokyo Bay. Around the Cape of Good Hope, the trip is 15,689 nautical miles, lasting 50 days. Through the Panama Canal, the trip is cut down to 29 days and a distance of 9,214 nautical miles. From a distance and time perspective, this is significant.
Fewer miles traveled and fewer days out at sea result in lower shipping costs for LNG vessels. Platts Analytics show freight costs from the US Gulf Coast toNorth Asia via the Cape of Good Hope are $1.40/MMBtu, but drop down to $1.02/MMBtu when using the Panama Canal.
The Panama Canal Authority and the US Energy Information Administration stated that the newly expanded canal will be able to accommodate 90% of the world’s current LNG tankers with capacity up to 3.9 billion cubic feet (Bcf). Prior to the expansion, only 30 of the smallest LNG tankers (6% of the current global fleet), with capacities up to 0.7 Bcf, could transit the canal.
Why would US LNG producers want to travel across the Pacific Ocean into North Asia? For now, at least, this region has some of the highest prices in the world for LNG. On July 25, Platts assessed the Japan Korea Marker (JKM) for September deliveries at $6.05/MMBtu. By comparison, European LNG prices for September delivery are in the$4.75/MMBtu range.
On July 25, the Sabine Pass laden 3.48 Bcf Maran Gas Apollinia LNG vessel was the first LNG vessel to pass through the newly expanded Panama Canal. The Trinidad & Tobago laden British Merchant was expected to pass through the Panama Canal on July 27.
Looking ahead, the amount of US LNG cargoes end up going through the Panama Canal will depend on demand levels and. consequently, prices in South America and Europe.
http://blogs.platts.com/2016/07/28/panama-canal-us-lng-asia/
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Chemical Rules' Worker Safety Parts Updated: EPA Proposal
Jul 28, 2016 | BNA Daily Environment Report
By Pat Rizzuto
The Environmental Protection Agency will present plans to update the worker safety provisions of its new chemical rules, under a regulation it proposed July 27.
The changes the EPA will propose align with updated requirements the Occupational Safety and Health Administration has established.
EPA also will propose to clarify that the worker safety requirements it establishes for chemical manufacturers should be implemented consistent with OSHA's hierarchy of controls approach for workplace health and safety.
Under that hierarchy, where possible workplaces should eliminate hazardous chemicals or working situations, substitute hazardous chemicals, use engineering controls and instate workplace or administrative controls before they require workers to use personal protective equipment.
http://news.bna.com/deln/DELNWB/split_display.adp?fedfid=94693480&vname=dennotallissues&fn=94693480&jd=94693480
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Railroads Must Switch Cargo to Rivals Under Proposed U.S. Rule
Jul 28, 2016 | Bloomberg
By Thomas Black
The U.S. Surface Transportation Board proposed a rule Wednesday allowing shippers to switch cargo among large railroads if there’s reasonable access to competing tracks.
The regulation would potentially upend decades-old restrictions that limit shippers’ control of their own rail freight. Currently, rail carriers pick up cargo and carry it to its final destination without customers being able to request that it be dropped off for a competitor to handle.
The rule “would allow a party to seek a reciprocal switching prescription that is either practicable and in the public interest or necessary to provide competitive rail service,” the regulator said in a decision posted on its website. The STB, as the agency is known, will take comments on the proposed rule until Sept. 26.
Shippers have pushed for so-called reciprocal switching to give them more options and help mitigate rising rail rates by increasing competition among carriers.
“STB’s decision follows years of deliberation and strong calls from shippers to adopt reforms in response to soaring freight rail rates and poor service,” the Rail Customer Coalition said in a statement. The group includes trade groups representing farmers, manufacturers and chemical makers.
Railroads have opposed the practice, which they call “forced access,” saying it would gum up rail traffic by increasing switching operations. The Association of American Railroads, a trade group, said the existing system allows for voluntary switching and compels railroads to cooperate if cargo is moved by two or more carriers.
“Forced access would be a step backwards for the supply chain in our country as railroads would ultimately require more resources to move the same amount of freight,” the association said.
https://www.bloomberg.com/news/articles/2016-07-27/railroads-must-switch-cargo-to-rivals-under-proposed-u-s-rule
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New Regs for Thursday: Railroads, Utilities, Disadvantaged Businesses
Jul 27, 2016 | The Hill - Regulation
By Tim Devaney
Thursday’s edition of the Federal Register will contain new rules for public utilities, railroads, trucks, and disadvantaged businesses.
Here’s what is happening:
Utilities: The Federal Energy Regulatory Commission (FERC) is proposing new standards for public utilities.
The communication protocols and business practice standards would align FERC’s requirements with recommendations from the North American Energy Standards Board (NAESB).
The public has 60 days to comment.
Railroads: The Surface Transportation Board is backing down from new rules for railroads.
The Board proposed new reporting requirements for railroads in 2010 that would require them to “submit information about all traffic movements designated as a Toxic Inhalation Hazard.” But it is formally withdrawing those rules.
The rule will be withdrawn immediately.
Trucks: The Federal Motor Carrier Safety Administration (FMCSA) is correcting mistakes made in a registration rule for motor carriers.
The FMCSA revised the registration requirements for "motor carriers, property brokers, freight forwarders, Intermodal Equipment Providers (IEPs), hazardous materials safety permit (HMSP) applicants, and cargo tank facilities” in 2015. But is now correct an error in the compliance date.
The rule will go into effect in January.
Businesses: The Environmental Protection Agency (EPA) is moving forward with new rules for disadvantaged businesses that receive federal financial assistance from the agency.
The direct final rule goes into effect in 90 days.
http://thehill.com/regulation/289408-new-regs-for-thursday-railroads-utilities-disadvantaged-businesses
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PHMSA Seeks Comments On Hazmat Insurance Study
Jul 27, 2016 | Progressive Rail Roading
The U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) is soliciting comments on the levels and structure of insurance for railroads that transport hazardous materials, the agency announced Monday.
PHMSA is partnering with the Office of Research and Technology and the Volpe Center to study the financial risks involved with transporting hazardous materials by rail. The study will examine whether the market currently offers sufficient levels of insurance coverage against potential damages arising from an accident involving a train moving hazardous materials.
The study is required under Section 7310 of the FAST Act legislation passed by Congress last year. When the study is completed, Transportation Secretary Anthony Foxx will submit a report on findings and recommendations to Congress, according to PHMSA.
PHMSA is seeking public comment and input from industry and other stakeholders to inform the study, including available insurance and liability literature and data that may be relevant, agency officials said.
Comments must be submitted by Sept. 9.http://www.progressiverailroading.com/federal_legislation_regulation/news/PHMSA-seeks-comments-on-hazmat-insurance-study--48957
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Cities Turn To Local Action To Block Oil Trains
Jul 27, 2016 | AP (In Fuel Fix)
SEATTLE — As crude oil trains began rolling through its downtown a few years ago, Spokane was among the first cities to pass a resolution calling for stronger federal safety regulations.
But when a mile-long train derailed in the scenic Columbia River Gorge along the Oregon-Washington border last month — after earlier passing through this major railroad hub in eastern Washington — some city leaders said they couldn’t wait for tougher federal protections.
This week the Spokane City Council decided 6-0 to ask voters in November whether the city should prohibit the shipment of crude oil or coal by rail. The ballot measure, if approved, would make rail shipments of crude oil or coal a civil infraction, punishable by a fine of up to $261 per tank car.
Spokane is certain to face a steep uphill legal fight, since the federal government regulates railroad operations and safety. Even council members expect the matter to end up in court, though some say it’s worth putting to voters.
Main rail lines converge in Spokane and there’s no realistic alternative route, BNSF Railway spokesman Gus Melonas said.
“There have been a distressing number of incidents in the U.S. and Canada with oil trains derailing or exploding, sometimes with catastrophic consequences, so cities certainly have a strong reason to regulate this kind of traffic,” said Michael Gerrard, a professor and director of the Sabin Center for Climate Change Law at Columbia University. “Unfortunately, the jurisdiction over it is firmly centered on the federal government.”
Spokane, which sees up to 19 oil trains a week, is the latest community attempting to assert its local authority in the fight over fossil fuels. Cities from Oakland, California, to South Portland, Maine, have also passed local ordinances to block crude oil or coal terminal projects.
Last month, Oakland unanimously voted to ban the handling and storage of coal and petroleum coke at bulk material facilities or terminals in Oakland over concerns about public health and safety hazards.
Meanwhile, South Portland is defending its city ban on the loading of crude oil into tankers in Portland Harbor in federal court. Its ordinance also prevented the Portland Pipe Line Corp., which sued the city, from reversing the flow of its pipeline to bring Canadi
And last week, Vancouver in southwest Washington voted to ban new or expanded crude oil storage facilities. The decision, however, won’t affect a massive crude-by-rail facility currently proposed at the city’s port and which the city has opposed.
Spokane’s measure is unusual in that the city of 210,000 people is trying to regulate which goods are shipped in trains, rather than other local attempts to regulate the construction of facilities that receive oil or coal.
“I believe personally that there’s something we have to do, and that means try every single argument that we possibly can in order to make a difference and make Spokane safer,” Council President Ben Stuckart before Monday night’s vote.
Some at the meeting criticized the tactic and worried about potential costs to taxpayers if the city has to defend it.
In a memo, the council’s legal adviser wrote there is likely a small chance the proposed ordinance would survive a legal challenge. But Councilman Breean Beggs, an attorney, believes a provision of the Federal Railroad Safety Act allows states to adopt certain laws to protect a local safety hazard — in this case Spokane’s sole source drinking water aquifer — if the federal government hasn’t yet addressed the issue.
Other municipalities have fought in different ways, including two Illinois communities that last year challenged new train safety rules they say would allow the continued use of oil tank cars known to fail during accidents.
Andrew Johnsen, BNSF Railway’s assistant vice-president of community affairs, wrote to the Spokane council Tuesday, saying its proposed ordinance, if enacted, would be pre-empted by federal laws. He said moving hazardous materials by rail is safe, and added that it appeared the “proposed ban is less about safety and more about a political agenda against fossil fuels.”
Justin Jacobs, a Union Pacific Railroad spokesman, wrote in an email that if a customer delivers an oil or coal rail car within federal regulations, the railroad is required to transport it to its destination.
But Eddie Scher, a spokesman with advocacy group Stand, said Spokane can and should make the case for authority over oil trains.
“Public safety has to come first,” he said. “Deadly oil trains were not on the table when pre-emption was dreamed up.”
http://fuelfix.com/blog/2016/07/27/cities-turn-to-local-action-to-block-oil-trains/
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Jul 27, 2016 | Plastics Today
By Clare Goldsberry
The Institute of Scrap Recycling Industries (ISRI; Washington, DC) Board of Directors recently approved the addition of an auto bumper plastics specification to the Scrap Specifications Circular .As per ISRI’s Policy Manual, any party may submit to ISRI a written appeal of the board’s approval of this new specification up to 30 days after publication of the notice. Written appeals must provide a rationale and a request for action and should be sent to ISRI President Robin Wiener.
The specification is as follows:Name: Post Consumer TPO Plastic Automotive Bumper CoversDescription: This grade consists of painted auto bumper covers removed from motor vehicles.Product: Post-Consumer Auto PartContamination: The following parts must be removed from the bumper cover: Head lamps, tail lamps, grills, emblems, rub stripes, reflectors and any other components attached to the bumper. Everything attached to the bumper cover should be removed before baling. Contamination should be limited to small metal parts such as clips, bolts and screws. No TPU (urethane) or RIM (reaction injection molded) plastic allowed.General: Refer to the “General Information” section for more information.
Writing specifications for recycling the myriad plastic products and components that are ubiquitous in our world is one way of ensuring that the recycled waste stream provides the best and most useable plastic materials. Thanks to plastic, we can produce a lot of automotive components that can be easily recycled at the end of their useful life. During their life, the benefits of plastics in the automotive sector far exceed any alternative materials that have been used in the past. A new report rolls out the evidence.
Produced by Trucost (New York, NY) for the American Chemistry Council (Washington, DC), Plastics and Sustainability: A Valuation of Environmental Benefits, Costs, and Opportunities for Continuous Improvement says that the automotive industry is one in which plastics offer advantages over alternatives in aspects other than the primary function. Trucost, a consultancy that helps customers quantify environmental risk, focused on the automotive industry to create a case study highlighting the potential environmental benefits of plastics.
Automobiles and heavy-duty trucks are blamed for a large percentage of greenhouse gas emissions—26% in 2014, according to the Environmental Protection Agency)—being a “key source of air pollution, emitting particulates, carbon monoxide, nitrogen oxides, benzene and hydrocarbons at the tail pipe,” said the study. The automobile industry is attempting to mitigate this pollution through various strategies, including lightweighting of component materials. “A study conducted by the U.S. Department of Energy found that reducing a vehicle’s weight by 10% could increase its fuel economy by 6.8%. Manufacturers like Ford and BMW have used plastic composite materials that meet durability requirements while weighing 10 to 50% less than the alternative.
In this study, Trucost estimates that the "global automobile sector consumed approximately 6.5 metric tonnes of plastic in 2015, primarily for use in vehicle components. It is estimated that 14.8 metric tonnes of alternative materials would be needed to functionally replace the use of plastic in this sector—an increase of more than 230% by mass. Given that the weight of the vehicle has direct implications for fuel consumption, lightweighting designs that incorporate various plastics and plastic composites have been key in environmental benefits.” This means that “replacing plastics in vehicles with the heavier alternatives leads to increased fuel consumption and, as such, increased environmental impact and cost."
Trucost estimates that if plastic components in passenger vehicles produced in North America in 2015 were replaced with alternative materials, the vehicles would require an additional 336 million liters of gasoline and diesel to operate over their lifetimes. The environmental cost of producing, distributing and combusting this fuel in the first year is estimated to be $176 million, and $2.3 billion over the lifetime operating mileage of vehicles produced in 2015. This equates to an environmental cost of $169 per gasoline or diesel passenger car sold in North America in 2015. The greatest environmental cost arises from greenhouse gas emissions ($2 billion), primarily arising at the tail pipe. Environmental cost from land and water pollutants accounts for $0.1 billion, with the majority of the impact split between fuel production and substituting plastics with alternative materials in the North American automobile sector.
The 86-page report provides a comprehensive look at the relative costs and benefits of plastics compared with alternative materials in automotive, which is just one of several consumer markets Trucost studied.
With new standards and specifications coming into play for the recycling of automotive components—underhood, body and interiors—we will reap even more benefits from the use of plastics.
Plastic really is fantastic!
http://www.plasticstoday.com/automotive-and-mobility/plastics-move-new-specs-recycling-auto-bumpers-benefits-lightweighting-auto-industry/78664807224967/page/0/1
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State Plans Violate ‘Bedrock' Clean Air Principles, EPA Says
Jul 28, 2016 | BNA Daily Environment Report
By Patrick Ambrosio
Thirty-six states have to update their plans for addressing excess emissions during facilities' startup, shutdown and malfunction because they contain provisions that violate “bedrock principles” of the Clean Air Act, according to the Environmental Protection Agency (Walter Coke Inc. v. EPA, D.C. Cir., No. 15-1166, brief filed 7/26/16).
The EPA, in a July 26 brief, defended its decision to require the states to alter their implementation plans to remove affirmative defense provisions, which shielded power plants and other industrial facilities from civil penalties related to violations caused by unavoidable equipment malfunctions. The agency in 2015 issued a rule (RIN:2060-AR68) that found the states to be substantially inadequate and required them to file revised plans by Nov. 22.
A coalition of 19 states, along with various industry organizations, is challenging that rule, known as a “SIP call,” in federal appeals court. The petitioners in March argued in opening briefs that the EPA lacks the authority to require the states to change previously approved plans because the agency failed to show that any of the plans are “substantially inadequate.”
The EPA argued in its brief that the SIP call was issued to address specific plan provisions that violate “one or more” of the following Clean Air Act principles:
• emissions limitations in state implementation plans must be continuous and not intermittent;
• states cannot revise EPA emissions limits without complying with Clean Air Act requirements for the revision of state plans;
• emissions limitations must be enforceable at all times; and
• federal district courts have jurisdiction to determine whether an emissions limit has been violated.
Ruling Drove Interpretation Change
The state plans in question were previously approved by the EPA, which thought the Clean air Act allowed for affirmative defense provisions in limited circumstances.
The agency's original interpretation was bolstered by a 2013 ruling by the U.S. Court of Appeals for the Fifth Circuit, which found affirmative defense language in Texas's state plan to be legal (Luminant Generation Co. v. EPA, 714 F.3d 841, 2013 BL 79999, 76 ERC 1575 (5th Cir. 2013)).
The EPA later changed its determination following a 2014 U.S. Court of Appeals for the District of Columbia Circuit ruling that the Clean Air Act did not provide the agency with the authority to include an affirmative defense in national hazardous air pollution standards for cement kilns (NRDC v. EPA, 749 F.3d 1055, 2014 BL 108218, 78 ERC 1369 (D.C. Cir. 2014)).
Texas Attorney General Ken Paxton (R), the Texas Oil & Gas Association and Luminant Generation Co. LLC, all of which are challenging the SIP call as applied to Texas, argued that the EPA's new interpretation on the legality of affirmative defense provisions “directly contradicts” that Fifth Circuit ruling.
The agency argued in its brief, however, that the Fifth Circuit's Luminant ruling does not preclude an interpretation change. While the Fifth Circuit ruled the EPA's original interpretation that affirmative defense is permissible under the Clean Air Act, the court did not address whether the agency's new interpretation is also permissible, the EPA said.
http://news.bna.com/deln/DELNWB/split_display.adp?fedfid=94693483&vname=dennotallissues&fn=94693483&jd=94693483
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Poll Finds Californians Back Climate Change Efforts Despite Cost
Jul 27, 2016 | The Sacramento Bee
By Jeremy B. White
Climate change policies appeal to a majority of Californians despite the possibility of higher energy costs, a new Public Policy Institute of California poll has found.
“Californians tend to have a hesitancy to support policies that are going to impact their pocketbooks, but in this case they seem to be willing to do so,” said PPIC president Mark Baldassare, calling the findings an endorsement of “the direction (the state) has taken in the last ten years to be a leader in reducing greenhouse gas emissions.”
Environmentalists laud California for its ambitious efforts to fight climate change, and Gov. Jerry Brown has placed the issue at the center of his fourth-term agenda. Last year Brownsigned a measure vastly expanding the state’s use of renewable energy.
But the road ahead for California’s cap-and-trade program, which requires businesses to buy permits for the carbon they emit, has become unclear. A recent auction reaped acomparatively tiny amount of revenue. Its legal foundation has come under question. And the program sunsets in 2020, spurring politically fraught efforts to extend it.
Those headwinds notwithstanding, California residents still support cap-and-trade (54 percent) and the underlying goal of reducing greenhouse gases, according to the poll. Around two-thirds of likely voters (62 percent) back the goal of reducing emissions to their 1990 levels by 2020, a target that is central to cap-and-trade’s mission. Helping explain that support are the large majorities (81 percent of adults and 75 percent of likely voters) who called climate change a serious threat.
As elected officials push to expand on climate goals, they have the public’s backing. A bill before the Legislature would have California diminish emissions to 40 percent below 1990 levels by 2030. More than two-thirds of adults (68 percent) and a majority of likely voters (59 percent) favored that idea.
Opponents of far-reaching climate programs have warned that Californians will endure higher energy costs. Moderate Democrats concerned about higher gas prices, echoing the oil industry’s criticism, helped block a proposal last year to cut petroleum use by 50 percent.
According to the PPIC survey, most Californians (59 percent) expect higher gas prices as a result of environmental laws. But many are willing to pay: just under two-thirds of those anticipating higher prices favor both the current emissions reduction goals and the expansion proposal. A majority of likely voters (56 percent) said they’d pay more for electricity generated by renewable sources like solar or wind.
A partisan divide runs through the responses. Majorities of Republicans opposed expanding the emissions reduction targets and the cap-and-trade program. And Republicans, unlike Democrats or independents, were not willing to pay more to support climate policies.
http://www.sacbee.com/news/politics-government/capitol-alert/article92243947.html#storylink=cpy
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